Hillstone Finance Weekly Update (Apr 3 ~ 7)

Hillstone Finance
5 min readApr 7, 2023

Welcome to the weekly update from Hillstone Finance. We have brought one news for this week:

  1. Duk-hyun Hong participated in the NBN news

NBN News(Apr 6)

Q. What is the current situation in the cryptocurrency market?

A. Dogecoin’s recent price increase is attributed to a Twitter logo change, but this alone does not guarantee future growth.

Some are skeptical of a number of predictions that it will reach $1 because the previous announcement on the Tesla website that it has adopted Dogecoin as a payment method has not materialized.

However, if Twitter uses Dogecoin as a payment method, the price increase could continue and it could reach $1 in the next cryptocurrency rally market.

There are also suggestions that the actual use of Dogecoin on platforms like Twitter will lead to greater growth.

The timing of this growth could be faster in the event of a rapid change in the cryptocurrency sector or a collapse in the banking industry.

Q. OpenSea launches ‘Pro’ platform?

A. OpenSea Pro has introduced GEM, an NFT collector that can derive optimal prices from over 170 NFT markets.

However, Block Research suggested that big investors are unlikely to return to OpenSea.

Currently, 70% of OpenSea’s trading volume comes from the top 1% of users.

OpenSea is introducing NFT airdrops to GEM users to increase incentives and attract end users.

Nevertheless, Blur dominated the trading volume, accounting for more than 50% of March’s trading volume.

Token incentives can be a powerful factor in attracting users, but it remains to be seen whether they can be absorbed by ordinary users.

Q. Recent Ethereum MEV Bots Big Loss Due to Hacking?

A. Ethereum MEV bot is a bot that exploits certain situations in the blockchain network to make money using MEV, a value that miners use to manipulate the order of transactions or select transactions to earn additional profits.

MEV Bot finds transactions that meet certain conditions, such as DeFi transactions, on the Ethereum network, and generates additional revenue by prioritizing block producers or proposing order manipulation.

The generated revenue can be shared between the MEV bot and the block producer.

Q. Verification of MEV bot security?

A. Ethereum MEV Bot lost $25M via malicious attack.

Here, the attacker was waiting to deposit 32 ETH, act as a validator, and become a block creator.

Attackers induced MEV bots to replace transactions and cause losses.

Flashbot updated the relay transmission sequence to prevent such attacks.

This emphasizes the need for continuous research and improvement in blockchain security to make the ecosystem safer and more robust.

Q. Real asset-based tokens (RWA)?

A. RWA (Real-World Asset Tokens) and STO (Security Tokens) are both blockchain-based digital assets that enable small investments and fast transactions in existing markets.

The difference is that RWA targets various assets in the real world, while STO targets traditional securities.

STO is regulated by securities law and requires KYC/AML procedures, while RWA may have different regulatory and legal requirements depending on the assets.

RWA adaptation is fast-paced and tokenized RWA bond assets exceed $1.5 billion, giving small investors access to a wider range of assets and faster trading speeds than traditional markets.

Q. What is the response of U.S. regulators?

A. U.S. regulators are currently considering ways to regulate tokenized assets, and various opinions are coming from the market.

Some see traditional finance as a risk to the mission of the blockchain, while others see it as an essential step toward mass adoption of the blockchain.

There are valid points on both sides of the argument.

The Bitcoin network opposes the introduction of Real World Asset (RWA) tokens, while the Ethereum network is moving toward mass adoption.

These conflicting views are expected to contribute to the growth and development of the blockchain market.

Q. After Arbitrum, many projects were airdrop farming…How do you deal with it?

A. Due to the confusion and buzz surrounding Airdrop, there has been a lot of interest in Korea since the listing of Arbitrum on Upbit.

Many communities showed interest in when and how much they received.

Meanwhile, zkSync, a proprietary roll-up solution, launched the Era Alpha mainnet as the next-generation giant, and Ethereum is moving from the mainnet to GK-Sync.

Another zk roll-up solution, Startnet, has seen an explosive increase in Ethereum connected to it.

In this bellicose environment, the next batter is closely watching how far he will go.

Q. Visualize Soulbound Tokens…What’s the difference from ZKP?

A. Soulbound Token (SBT) is a new concept in Vitalik Buterin that proves the identity, experience, or ability of the wallet owner using tokens bound to an inalienable wallet.

This is different from NFTs and there is no need to trust a centralized platform or link it to a real ID.

While ZKP and SBTs are similar in that they prove identity, ZKP use knowledge proofs and SBTs use proprietary tokens.

Q. How will SBT affect the cryptocurrency market?

A. Soulbound Token (SBT) is likely to have a positive impact on the cryptocurrency market as it provides a new way for wallet owners to prove their identity without having to trust a centralized platform or connect to a real identity.

Potential applications of technology can extend beyond the cryptocurrency market to areas such as recruitment, education, and finance.

Since SBT operates on the Ethereum blockchain, it is also expected to benefit from the increase in the value of Ethereum.

Overall, SBT can contribute to safer personal digital asset protection and has the potential to become a globally applicable technology.

Q. 2023 Trend Web3 Digital Identity, Advances in Decentralized Social Networks…Why?

A. Digital IDs have issues that need to be improved, such as the accuracy of user identification, privacy and security concerns.

Blockchain technology is proposed as a solution that allows users to use personal wallets and use digital IDs for authentication.

SBT is an inalienable or bound token containing information indicating a digital identity.

Other solutions use Decentralized Identifiers (DIDs) and Verified Credentials (VCs).

These digital ID solutions allow individuals to control digital IDs, store assets and information in a blockchain, and improve accuracy and reliability.

Q. Technology for proof of digital identity, both ZKP and STB?

A. Both DID (Decentralized Identifiers) and VC (Verified Credentials) are solutions for managing digital IDs in the blockchain.

This allows individuals to control their digital IDs and store assets and information in a more accurate and reliable manner.

However, SBT is an inalienable token that includes information about an individual’s identity and can be used to authenticate a career or competency, ZKP differs from Soulbound Token (SBT) and ZKP in that it is a technology.

To demonstrate knowledge without disclosing information, SBT is considered a new way to protect your personal identity, It allows users to control digital IDs more effectively without having to trust a centralized platform.

There is also the possibility of developing a new business model.

The combination of NFT and SBT is expected to provide a more efficient and secure way to manage digital IDs,

This will have a great impact on the development of digital IDs of distributed social networks and Web3.

That is all for this weekly update.

Thank you.

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