The Conference Buzz

In this edition, we depart from our deep analysis of specific DeFi verticals and instead delve into key highlights of the crypto ecosystem currently, which was in evidence at two big crypto conferences in two different parts of the world - TOKEN2049 in Singapore and Permissionless II in Austin. In our DeFi roundup, we cover:

 🏦 Permissionless 2: Banks Share Bullish Sentiment

 💬 Binance CEO Talks Crypto Mass Adoption via On-Chain Social Media

 💰 Uncover the 10 Crypto Price-Boosters

Amidst the prevalent discourse surrounding security apprehensions and the regulatory blowback, it was necessary to recalibrate the DeFi narrative. During this juncture, TOKEN2049 and Permissionless II  emerged as platforms for celebrating Web3 advancements, spurring conversations about its future course. Let's delve into the unfolding developments and their role in reshaping global perceptions of Asia through a broader lens.

Attracting more than 10,000 attendees, 300 speakers, and as many as 5000 companies, this year’s TOKEN2049 was one of the most recognizable events that broke records and barriers while celebrating the latest innovation in the blockchain industry. Here is a download of the key takeaways of TOKEN 2049:

Next-Gen Stablecoins

Stablecoins, one of the most extensively embraced applications in crypto, have a current limitation, their inability to accrue interest, and in most cases, their peg to the US dollar as their backing. These two attributes are poised for change, and we will see the emergence of interest-bearing stablecoins, and also, crypto asset-backed stables. While the concept itself isn't groundbreaking, the timing seems ripe for this stablecoin innovation to find scale. 

The Ubiquitous AI and Crypto Buzz

AI x Crypto is real  > The AI narrative is overused everywhere now, and so is the buzz around the convergence of AI and crypto. From automated agents natively interacting with smart contracts, to AI-managed asset management, to distributed storage & computation run on blockchains via protocols, for large-scale AI models to be operated and be sanction resistant, and not bear concentrated exposure to centralized storage & computation. It's a validation of the work at aarnâ protocol, building aarnâ AI at the intersection of DeFi and AI for autonomous asset management 

DeFi’s Liquidity Complexity

Liquidity and velocity are major concerns within the cryptocurrency market. Legitimate market makers are struggling to access capital, and reduced trading volumes are pressuring CEXs. Continued market stability is sapping active liquidity even in top DEXs such as Uniswap which gained traction earlier this year. Larger market players unfamiliar with DeFi's complex, on-chain liquidity provision further compound the issue. Venture capitalists remain cautious, impeding newer DeFi projects from introducing innovative ideas and stimulating user engagement, which is vital for liquidity growth.

L1 Strategies The Building Blockchains panel, led by Haseeb Qureshi, brought together blockchain luminaries: Illia Polosukhin (NEAR Protocol), Emin Gun Sirer (Ava Labs), Mo Shaikh (Aptos Labs), and Adeniyi Abiodun (Mysten Labs / Sui Network). Their discourse explored DeFi's path to mass adoption, with a spotlight on enhancing usability and accessibility. 

Sirer's Avalanche stood out with its multi-chain approach, and he was quite incisive at different moments, differing sharply in the use of sub-nets, and why it’s important for compliant applications in areas involving specific access within boundaries or regulation. Watch some of the action on this panel. 

The focus on user experience by alternative chains is a promising sign for things to come ahead. 

Permissionless II, was an exhilarating tech symposium, but according to many who’ve been to both before, was a bit subdued compared to Token2049. It featured an impressive lineup of more than 60 panels and sessions. Here is a round-up of key takeouts from the event:

Political Alignment with Crypto Values

Tom Emmer, the majority whip of the United States House of Representatives and a fervent crypto supporter, along with Hester Peirce, a commissioner at the US Securities and Exchange Commission, stood out among the panelists. Their resolute alignment with crypto values and readiness to champion these principles, transcending political boundaries, underscored the favorable sentiment towards the crypto industry among influential lawmakers. It demonstrated a deeper understanding of the crypto space within legislative circles.

Legal and Regulatory Discourse

The discussions led by the general counsel from Ledger and a representative from the blockchain association underscored a looming and pivotal battle against legislative initiatives that could prove detrimental to the crypto industry. The speakers passionately emphasized the need for vigilance and advocacy to safeguard the crypto space against potentially adverse regulatory changes, setting a resolute tone for the industry's future.

Blockchain Highlights

• MakerDao planned to use the Solana virtual machine by forking it so it could be used in their own project. Anatoly Yakovenko (co-founder of Solana and CEO of Solana Labs), championed the open-source ethos of DeFi, contrasting it with the conventional founder-driven approach that often involves fees and incentives for building on a particular blockchain. 

• MakerDao's aspiration to serve as the crypto world's central bank piqued interest. Their inventive strategy employs Dai for real-world asset investments, resulting in substantial revenue and establishing MakerDao as a pivotal figure in crypto finance. This mirrors DeFi's growth and increasing influence in the industry.

• Permissionless II explored dynamic blockchains, activated on demand and deactivated when idle, a singular shift from static blockchains. They create dedicated environments for specific tasks, optimizing resource usage and enhancing blockchain's adaptability, efficiency, and sustainability.

In addition to discussions about the way forward in crypto, there was an acknowledgment of crypto technology experiencing a noteworthy shift with increasing influence from teams based in Asia. This was a noteworthy departure from the past when most development predominantly occurred in the West.

Vitalik Buterin, pointed out that just five years ago, East Asia was primarily known for its cryptocurrency exchanges and mining activities, with limited involvement in development and research. However, this paradigm has undergone a substantial reversal.

During discussions about the recent innovation known as "account abstraction," aimed at enhancing the user-friendliness of crypto wallets and enabling account recovery in case of lost keys, Buterin revealed his observations from his recent travels through East Asia. He highlighted that in the past month alone, he had engaged with approximately four to five groups actively working on the development of account abstraction wallets. Such a scenario would have been quite unconventional in earlier phases of blockchain's 14-year history.

This transformation underscores the growing prominence of Asian teams in shaping the future of crypto technology and their increasing contributions to the field.

Interestingly, In the context of grassroots cryptocurrency adoption, India has emerged as a top-ranked country in an analysis conducted by Chainalysis. This data also underscores Asia’s growing significance in cryptocurrency adoption 

Wrapping Up

TOKEN 2049 and Permissionless II might not have unveiled the future course for crypto & DeFi, but underscored the deep belief that the ecosystem has in the foundational technology, and were a big boost to the overall sentiment, especially the vibe at Singapore. This is indicative of the optimism that is deep in the community, quite often a singular reason for the success & wider adoption of a belief, a system, or a technology crypto & DeFi is all that, and it’s a big thumbs up from the ecosystem. The rest will fall in place!  The aarnâ ecosystem - with its most advanced user dApp, and infrastructure layer of the tokenization platform in DeFi is poised to build on this sentiment and address deep barriers, to help enable the democratization of DeFi.

• Entry of traditional finance into DeFi and how it could reshape real-world assets, potentially leading to a specialized DeFi ecosystem for physical assets.

• CZ’s blockchain-powered social media vision, and insights on broadening crypto adoption through simplified fiat-to-crypto conversions.

• Cryptocurrency prices swing with market sentiment, tech changes, regulations, and investor actions

aarnâ's mission is to decentralize the alpha value chain, empowering everyone to benefit from DeFi’s transformative potential, and helping manage one’s crypto & digital assets wealth. >> Join our beta

hope you liked Alpha unhashed. If you’d prefer to see it in your inbox at a particular time, click here & select a time slot.

• Website

• Twitter

• Telegram.