The crypto community has expressed disdain over poor management and centralization in the Multichain crypto ecosystem.
Multichain experienced a series of ‘hacks,’ which have all been confirmed to be inside jobs, resulting in a series of companies being forced to close down.
Multichain Bridge ‘hack’ has sent a ripple of distrust in the crypto industry after what investors thought was a hack was revealed to be an inside job. Multichain is forced to close down as it does not have operational funds to continue operating since all control was under an arrested CEO, and all validators have been kicked out of the MPC node servers.
Multichain Bridge mismanagement stirs the pot
The crypto community is not buying into the Multichain hacking and CEO disappearance story, as the industry is counting losses from the misfortune. According to the company, Multichain Bridge CEO Zhao Jun was arrested in May 2023.
Since his disappearance, Multichain Bridge has been left with crippled systems. Its MPC node validators were kicked out of the servers, and no one else had access to them or Jun’s cloud server, or so it was thought. This state of operation was the case until it was discovered that Jun’s sister was transferring investor funds from MPC accounts to a personal EOA address.
She was also arrested by the same Chinese authorities that reportedly took Zhaojun. Now, Multichain has to wind down its operations. This misfortune has sent a wave of distrust and disdain across the crypto space. Multichain was one of the largest bridges and had thousands of users.
Talking to Fintech Express, DeFi solutions provider Bracket Labs called on DeFi projects to recheck their decentralization approaches and avoid falling for a similar centralization of power as seen in the Multichain saga.
“It is extremely disappointing to hear that the disappearance of the Multichain founder could lead to a shutdown of the protocol because of centralized back-end infrastructure. Even though the MPC nodes themselves are running properly, the fact that they are node servers running on the founder’s personal cloud server account is concerning.
This is a wakeup call for all DeFi projects to verify that they do not rely on any single individual or infrastructure provider/vendor,” Bracket Labs said.
Aftershock events of the Multichain Bridge meltdown
As a result of poor management in the ranks of Multichain Bridge, multiple investors have been affected. Some projects will even be forced to close down. Such a project is Geist Finance. Geist Finance is a lending protocol that held its assets on Multichain. However, it has no choice but to wind up its operations permanently following the misfortune.
1/4 Geist Finance on Fantom REKT due to Multichain bridge fiasco.
A fork of Aave, Geist is a lending/borrowing protocol that uses Chainlink oracle.
Yet, the Chainlink tracks prices of real native tokens, while they were trading at around 0.22 to the dollar on Fantom. pic.twitter.com/Ja1whaHX7n
The Ripple effect has also hurt the Fantom network, as the blockchain harbored Multichain. Multichain was its largest bridge, meanings its shutdown resulted in lower network usage. In a July 17 update, Fantom expressed that it was disappointed to hear about Multichain but had found a solution.
“We are deeply disappointed to hear about the latest Multichain news. It is a difficult situation for everyone impacted, on a brighter note we have found an alternative to swap Multichain Assets using our https://fwallet.network inbuilt Dex Aggregator. USDC holders can now swap their funds to $FTM at $1 price using the Dex Aggregator,” the tweet read.
Since the beginning of July, the total value locked (TVL) in the Fantom network had been on a sharp dive owing to the Multichain saga. The TVL had fallen by 67% on July 16 in July only. This makes it one of the biggest hits in the network’s operational history.
Keep watching FinTech Express for more updates on this and other fintech-related developments.
Blockchain networks were initially built independently. However, the crypto industry has evolved to become an interconnected web of ecosystems. As such, it’s important that blockchain networks communicate. One of the first steps if understanding blockchain interoperability is learning about blockchain bridges and wrapped tokens.
Blockchain Bridges
Blockchain bridges are mechanisms that facilitate the transfer of digital assets between different blockchain networks. They enable interoperability and connectivity among disparate blockchains, allowing assets and data to move across them seamlessly. Blockchain bridges are vital in enabling cross-chain communication and facilitating the exchange of tokens and information.
What is a Blockchain Bridge?
A blockchain bridge connects or links two or more blockchain networks.
It enables the transfer of assets, tokens, or data from one blockchain to another.
Blockchain bridges typically consist of a set of smart contracts or protocols that facilitate the secure transfer and verification of assets across different networks.
Why are Blockchain Bridges Important?
Blockchain bridges enhance interoperability by allowing assets to move between different blockchains.
They enable cross-chain decentralized applications (dApps) and facilitate the exchange of tokens across multiple networks.
Bridges enhance liquidity by connecting fragmented markets across different blockchains.
They support scalability by offloading transactions from one blockchain to another, relieving network congestion.
Types of Blockchain Bridges
Relay Bridges: These bridges operate by relying on a set of validators or oracles that verify and facilitate the transfer of assets between blockchains.
Tokenized Asset Bridges: These bridges focus on transferring ownership of real-world assets, such as fiat currencies or physical commodities, onto a blockchain network, enabling their representation as digital tokens.
Hybrid Bridges: These bridges combine features of relay and tokenized asset bridges to enable the transfer of both native and tokenized assets across blockchains.
How Does a Blockchain Bridge Work?
Step 1: Locking Assets – When transferring assets from one blockchain to another, the assets are “locked” in the original blockchain by a user or a smart contract.
Step 2: Verification – The bridge protocol verifies the locked assets’ validity and initiates the transfer process.
Step 3: Cross-Chain Communication – The bridge protocol communicates with the receiving blockchain and creates a corresponding representation of the locked assets on the target blockchain.
Step 4: Unlocking Assets – Once the representation is created, the locked assets are “unlocked” on the target blockchain, allowing users to utilize or trade them.
Wrapped Tokens
Wrapped tokens are digital assets that represent other cryptocurrencies or assets on a different blockchain. They are created through a process called “wrapping” or “tokenization” and enable the transfer and use of assets across different blockchain networks.
What are Wrapped Tokens?
Wrapped tokens are tokens that are pegged to the value of another asset or cryptocurrency on a different blockchain.
They act as a bridge between different blockchains, allowing the representation of an asset from one blockchain to be used on another blockchain.
Wrapped tokens maintain a fixed or variable value ratio to the underlying asset they represent.
How do Wrapped Tokens Work?
Step 1: Locking the Original Asset – The original asset is locked in a custodial wallet or smart contract on its native blockchain.
Step 2: Minting the Wrapped Token – The corresponding amount of wrapped tokens is minted on the target blockchain, typically following a predetermined ratio or formula.
Step 3: Redemption – When a user wants to redeem their wrapped tokens, they initiate the process by burning the wrapped tokens on the target blockchain.
Step 4: Unlocking the Original Asset – After burning the wrapped tokens, the user can claim the original asset from the custodial wallet or smart contract on the original blockchain.
Use Cases of Wrapped Tokens
Interoperability: Wrapped tokens enable the transfer of assets between different blockchains, enhancing cross-chain interoperability.
Liquidity: By wrapping assets, they can be used on platforms that support the target blockchain, thereby increasing liquidity and accessibility.
DeFi Applications: Wrapped tokens play a significant role in decentralized finance (DeFi) applications, allowing users to leverage assets from different blockchains for lending, borrowing, and trading.
Popular Examples of Wrapped Tokens
Wrapped Bitcoin (WBTC): A wrapped token representing Bitcoin on the Ethereum blockchain.
Wrapped Ether (WETH): A wrapped token representing Ether on the Ethereum blockchain.
Wrapped Tezos (wXTZ): A wrapped token representing Tezos on the Ethereum blockchain.
Conclusion
Understanding blockchain bridges and wrapped tokens opens up new possibilities for cross-chain compatibility and asset utilization. However, it’s important to consider the trustworthiness, security, and reputation of the bridge or wrapping protocol being used. Conducting thorough research and relying on trusted platforms are crucial to ensure the safe and efficient usage of blockchain bridges and wrapped tokens. Keep watching Fintech Express for more beginner and advanced-level guide articles.
Staking is a process where you lock crypto assets for a set period of time to support the operation of a blockchain. In return for staking your crypto, you earn more cryptocurrency. Here are the best crypto staking platforms at the moment.
The best crypto staking platforms
Binance:
Binance is one of the largest and most popular cryptocurrency exchanges globally.
They offer staking services for various cryptocurrencies, including but not limited to Ethereum, Cardano, Tezos, and more.
Staking rewards are distributed on a regular basis, depending on the specific cryptocurrency and staking duration.
Binance provides a user-friendly interface and a secure platform for staking.
Coinbase:
Coinbase is a well-known cryptocurrency exchange that provides staking services.
They support staking for certain cryptocurrencies, such as Ethereum 2.0 and Tezos.
Staking rewards are distributed automatically to the users’ Coinbase wallets.
Coinbase is known for its strong security measures and regulatory compliance.
Kraken:
Kraken is a reputable cryptocurrency exchange that offers staking services.
They support staking for several cryptocurrencies, including Polkadot, Cosmos, and Kusama.
Kraken provides competitive staking rewards and a user-friendly interface.
The platform is known for its high liquidity and robust security features.
Crypto.com:
Crypto.com is a comprehensive cryptocurrency platform that provides staking services.
They offer staking options for various cryptocurrencies, including Ethereum, Cardano, and Polkadot.
Crypto.com provides attractive staking rewards, and users can choose between flexible or fixed-term staking options.
The platform also offers a range of other services, including a cryptocurrency exchange and a crypto debit card.
Atomic Wallet:
Atomic Wallet is a multi-currency wallet that supports staking for several cryptocurrencies.
They offer staking options for cryptocurrencies like Tezos, Cardano, and more.
Atomic Wallet provides a user-friendly interface, strong security measures, and a built-in exchange.
Factors to consider when choosing the best crypto staking platforms
Security: Look for platforms with robust security measures and a proven track record in safeguarding user funds.
Supported Cryptocurrencies: Ensure that the platform supports the cryptocurrencies you want to stake.
Staking Rewards: Compare the staking rewards offered by different platforms and consider the terms and conditions associated with them.
User Experience: Evaluate the platform’s user interface, ease of use, and additional features provided.
Reputation and Trust: Consider the reputation and trustworthiness of the platform within the crypto community.
Conclusion
Always remember that crypto staking involves risks, such as potential token price fluctuations and the underlying blockchain’s performance. It’s essential to make informed decisions and understand the risks associated with staking before participating. Keep watching Fintech Express for more learn articles and news around financial technology and related fields.
The Ethereum Community Conference (ETHcc Paris 2023), the latest annual European Ethereum event, has kickstarted and eyes a July 20th ending.
The event, formerly known as ASSETH, has over 4000 attendees, with only 2500 tickets available.
ETHcc Paris 2023 focuses on innovation and growth in the Ethereum community.
ETHcc Paris 2023 began on July 17 in Paris with over 250 speakers worldwide, featuring side events, meetups, panels, and parties as the community reflects on its ecosystem. The event’s venue will be at the Maison de la Mutualité for all 4 days from 9 am to 6 pm. And Collège des Bernardins will be accessible from 10 AM to 6 PM Monday, then from 09 AM to 06 PM the next 3 days.
ETHcc Paris 2023 week takes off with a bang
According to ETHcc’s official website Ethereum France (formerly ASSETH) is a French non-profit organization mainstreaming blockchain and Ethereum in all French-speaking countries so everyone can assume ownership of this technology.
The event has taken off with a bang as several Ethereum projects announced new variations, and speakers expressed deep concerns about the Ethereum ecosystem and the crypto industry in general. Some of the notable developments from the first day of the event include
BitDAO-backed Mantle Network launched mainnet
Polygon’s Mudit Gupta addressed the loss of address keys resulting in fortunes going missing
Arianee Protocol V2 was announced
Lens protocol V2 was announced
To learn more about the event, please visit the official website here. Keep watching Fintech Express for more updates on the ETHcc Paris 2023 event.
Selecting cryptocurrency wallets is an important decision to ensure the security and convenience of your digital assets. Here are some factors to consider when choosing cryptocurrency wallets:
Types of Cryptocurrency Wallets
There are different types of cryptocurrency wallets, each with its own characteristics. The main types are:
Hardware Wallets: These are physical devices designed specifically to store cryptocurrencies offline. They offer excellent security by keeping your private keys offline, away from potential online threats.
Software Wallets: These applications can be installed on your computer, smartphone, or tablet. They provide convenient access to your cryptocurrencies but may be more susceptible to online security risks than hardware wallets.
Web Wallets: These are online cryptocurrency wallets accessible through a web browser. They are convenient but generally considered less secure due to the risk of hacking or phishing attacks.
Factors to Consider When Selecting Cryptocurrency Wallets
Security:
Security should be a top priority when selecting a crypto wallet. Consider the following security features:
a. Private Key Control: Ensure you fully control your private keys. This means the wallet provider cannot access or store your private keys. You should be the sole custodian of your keys to maintain ownership and security over your cryptocurrencies.
b. Two-Factor Authentication (2FA): Look for wallets that offer two-factor authentication, which adds an extra layer of security by requiring a second verification step, such as a unique code generated on your mobile device.
c. Encryption: Wallets that encrypt your data at rest and in transit provide an additional layer of security. This ensures that your private keys and wallet information remain protected even if your device is compromised.
d. Open-Source Code: Open-source wallets allow the community to review the code for vulnerabilities and ensure the wallet’s integrity. This transparency can enhance security and build trust.
Supported Cryptocurrencies:
Different wallets support various cryptocurrencies. Ensure that the wallet you choose supports the specific cryptocurrencies you own or plan to invest in. Popular wallets often support major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), but the range of supported coins can vary.
User-Friendliness:
Consider the wallet’s user interface and ease of use. A user-friendly wallet with intuitive features and a clear layout can enhance your overall experience and make managing cryptocurrencies more convenient.
Development Team and Reputation:
Research the wallet’s development team and its reputation in the cryptocurrency community. Look for wallets that have been around for a while and have a track record of regular updates and bug fixes. Check for user reviews, community feedback, and any security incidents or vulnerabilities that have been reported in the past.
Customer Support:
Assess the availability and quality of customer support provided by the cryptocurrency wallet provider. In case of any issues or questions, it’s important to have responsive support channels that can assist you.
Backup and Recovery Options:
Look for wallets that offer robust backup and recovery options. This could include mnemonic phrases (seed phrases) or wallet backups that allow you to restore your wallet in case of device loss, damage, or theft.
Wallet Compatibility:
Consider the compatibility of the wallet with your devices and operating systems. Check if the wallet supports the operating system of your computer or the mobile platform of your smartphone.
Reputation and Reviews:
Research the reputation of the wallet provider and read reviews from other users. Look for well-established wallet providers that have a good reputation for security and are recommended by the cryptocurrency community.
Cost:
Consider any associated costs, such as wallet fees or charges for transactions. Some wallets may be free, while others may have one-time purchase fees for hardware wallets or transaction fees for certain operations.
Conclusion
Remember, security should be your top priority when selecting cryptocurrency wallets. Consider the trade-offs between security features, convenience, and ease of use. Diversifying your holdings across multiple wallets is also recommended for added security. Take your time to research and compare different wallet options before making a decision that suits your needs and preferences.
