Horacio, Author at Fintech News https://www.fintechnews.org/author/horacio/ And Techs news of your sector Wed, 20 Mar 2024 22:15:37 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.5 The Bitcoin halving is about a month away — here’s what you can expect https://www.fintechnews.org/the-bitcoin-halving-is-about-a-month-away-heres-what-you-can-expect/ https://www.fintechnews.org/the-bitcoin-halving-is-about-a-month-away-heres-what-you-can-expect/#respond Wed, 20 Mar 2024 22:15:37 +0000 https://www.fintechnews.org/?p=33643 The Bitcoin halving is expected to take place on or around April 20 By KATHERINE ROSS The Bitcoin halving is roughly a month away. It’s set to take place on or around April 20, though the exact date won’t become clear until it’s closer. The quadrennial event takes place every 210,000 blocks, this time at […]

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The Bitcoin halving is expected to take place on or around April 20

By KATHERINE ROSS

The Bitcoin halving is roughly a month away.
It’s set to take place on or around April 20, though the exact date won’t become clear until it’s closer. The quadrennial event takes place every 210,000 blocks, this time at block 840,000.
Following the halving, the amount of bitcoin awarded to miners will be, well, halved: Mined bitcoin rewards will drop to 3.125 per block, down from 6.25.
The last halving occurred in 2020 when the rewards dropped from 12.5 bitcoin per block to 6.25.

What’s different this time?

This will be the fourth halving in the history of Bitcoin, but it is unique for a couple of reasons. First and foremost is it follows the newly-launched bitcoin ETFs.
The Securities and Exchange Commission only approved the bitcoin ETFs in January, meaning that they’ll only be a few months old by the time the halving happens.
The other reason is that bitcoin has never before carved out new all-time highs ahead of a halving. Bitcoin’s recent historic run-up puts this halving in completely uncharted territory.
ICYMI: Earlier this month, bitcoin (BTC) notched a new all-time high for the first time since 2021.

What to expect

For the halving itself? Not much. It’s a fun event, but it won’t have a serious impact on most watchers or holders in the short term — if history repeats itself. However, the previous halvings have led to movement in bitcoin’s price in the months post-halving.
Lucas Kiely, chief investment officer of Yield App, thinks that bitcoin could enter a “danger zone” ahead of the halving, and see a price drawdown of up to 20%. Bitcoin, after hitting multiple new all-time highs, lost a lot of the positive momentum sending it higher.
There’s not a clear trend revealing how bitcoin may react directly after the event occurs — especially considering how vastly different this year has been from the past halvings.
But in the long run, as Komodo’s Chief Technology Officer Kadan Stadelmann previously noted, the halving creates “a scarcity that tends to increase its value.”
Uncertainty won’t prevent analysts and commentators from looking into what happens post-halving.

How bitcoin could be impacted

JPMorgan analysts, in a note last month, predicted that bitcoin’s price could dip to $42,000 after the halving. Historically, the halvings have occurred when bitcoin was below its previous peak, and the previous three did lead to bitcoin carving out bull runs in the months after the halvings, though not immediately.
The analysts also noted that continued price appreciation could be a boon for publicly listed bitcoin miners, such as Marathon, Riot, Griid, Cipher and Core Scientific among others, even as their cost of production doubles.
The analysts believe that the miners with “below average electricity costs” and better rigs could survive as others struggle.
Miners could see further consolidation in the space, with bigger players like Marathon making pre-halving moves. The publicly traded miner bought another site in an $87 million deal earlier this month.
Riot and CleanSpark also made their own moves earlier this year. CleanSpark acquired three new facilities and Riot bought more mining machines.
While JPMorgan went low in their estimates post-halving, others see bitcoin carving out new all-time highs by the end of this year.
Standard Chartered, in a note, said that bitcoin could hit $150,000 by the end of this year. While the analysts didn’t dig into the past action of bitcoin post-halving, part of their thesis comes from the fact that after the halving, bitcoin miners “new supply will fall to 450 BTC per day, [and] the same amount of ETF buying will be equivalent to 5x new supply.”
Binance CEO Richard Teng, speaking at an event, reportedly said he could see bitcoin surpassing $80,000 by the end of the year. Teng previously expected bitcoin to top out at $80,000.
Teng, in a post on X, acknowledged the vast difference in his call versus Standard Chartered’s, adding, “I have always been conservative.”

 

Link: https://blockworks.co/news/bitcoin-halving-price-implications?utm_source=pocket_saves

Source: https://blockworks.co

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]]> https://www.fintechnews.org/the-bitcoin-halving-is-about-a-month-away-heres-what-you-can-expect/feed/ 0 PEPE recovers steadily amidst market turbulence https://www.fintechnews.org/pepe-recovers-steadily-amidst-market-turbulence/ https://www.fintechnews.org/pepe-recovers-steadily-amidst-market-turbulence/#respond Wed, 20 Mar 2024 13:57:32 +0000 https://www.fintechnews.org/?p=33640 By Ann Mugoiri Pepe Coin witnessed a significant setback with a more than 5% decline during Tuesday’s market-wide correction. However, today marks a notable recovery as the crypto surged by over 15%. Amidst ongoing market turbulence, characterized by Bitcoin’s drop below $61,000 and Ethereum slipping under $3,100, Pepe’s resilience is drawing attention.The cryptocurrency has seen […]

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By Ann Mugoiri
Pepe Coin witnessed a significant setback with a more than 5% decline during Tuesday’s market-wide correction. However, today marks a notable recovery as the crypto surged by over 15%. Amidst ongoing market turbulence, characterized by Bitcoin’s drop below $61,000 and Ethereum slipping under $3,100, Pepe’s resilience is drawing attention.The cryptocurrency has seen its 24-hour trading volume surpassing $1.6 billion USD.
Recent price movements in the last 24 hours saw PEPE price swings between $0.0000069 and $0.00001050,as buyers started coming into the market. After dropping to $0.00000581 on Tuesday, Pepe Coin is again trading above the resistance levels identified as $0.0000065 and $0.0000068.

A move above the $0.0000071 level could indicate a bullish correction, suggesting that confidence is returning among traders and that PepeCoin may resume its upward momentum.
The 4-hour chart Relative Strength Index (RSI), sitting just above the 40 mark, suggests a neutral to slightly bearish sentiment. The current RSI level provides room for upward movement before the coin would be considered overbought, hinting at a potential for recovery if bulls continue mounting pressure.

The Average Directional Index (ADX), hovering around 26.49, supports bullish sentiment, yet its strength is moderate.This supports the interpretation that while upward momentum is present, it may not be compelling enough to indicate a robust continuation without further corrections.

PEPE/USD 2-Hour Chart Analysis:Bullish Momentum Builds

On the 2-hour chart, PEPE coin displays a shift in market sentiment, as it recovers from a recent dip to lows of $0.00000581. Currently, the cryptocurrency is trading at $0.000006926, marking a significant upswing of more than 15%.
This positive change in price is confirmed by the Exponential Moving Averages (EMAs), where the short-term EMA (20-period) begins to pivot upwards, suggesting a budding bullish phase. The increase in trading price points towards an influx of buying pressure as market participants capitalize on the lower price point, potentially indicating a collective assessment that the dip represented a buying opportunity.
The EMAs are still trending below the longer-term 100 and 200-period averages, which could be interpreted as the market seeking to find a stable ground before establishing a confirmed bullish trend.

The Relative Strength Index (RSI) on the 2-hour chart has moved upwards but remains below the overbought threshold of 70, sitting near the midpoint at approximately 52. This implies that there is room for upward movement before the asset is considered overbought.
The Moving Average Convergence Divergence (MACD) also suggests a changing tide as the signal line begins to converge with the MACD line, a sign often associated with potential upward price momentum.
Pepe coin’s support levels are situated at $0.0000055876, $0.000000551, and the strongest support observed at $0.0000054391. These levels signify areas where buying pressure may increase, potentially halting or reversing downward price movements.
Conversely, resistance levels, positioned at $0.0000077361, $0.0000080120, and $0.0000088845, represent zones where selling pressure could intensify, hindering upward price momentum. With the upcoming Federal Open Market Committee (FOMC) meeting results, macroeconomic factors could also sway the direction of PepeCoin and its peers.

 

Link: https://www.analyticsinsight.net/pepe-recovers-steadily-amidst-market-turbulence/?utm_source=pocket_saves

Source: https://www.analyticsinsight.net

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]]> https://www.fintechnews.org/pepe-recovers-steadily-amidst-market-turbulence/feed/ 0 What will the future of Cybersecurity bring? https://www.fintechnews.org/what-will-the-future-of-cybersecurity-bring/ https://www.fintechnews.org/what-will-the-future-of-cybersecurity-bring/#respond Wed, 20 Mar 2024 09:14:33 +0000 https://www.fintechnews.org/?p=33066 By Kevin Smith on February 1, 2024   Our world is reliant on technology. It shapes and influences nearly everything we do—from the moment we wake up until we go to sleep. And this applies to both our personal and professional lives. So, as we move into the future, cybersecurity will need to play an integral role to […]

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By Kevin Smith on February 1, 2024

 

Our world is reliant on technology. It shapes and influences nearly everything we do—from the moment we wake up until we go to sleep. And this applies to both our personal and professional lives. So, as we move into the future, cybersecurity will need to play an integral role to fortify our societal norms, economic structures, and the very fabric of our interconnected world.
Organizations around the world spent around $150 billion on cybersecurity in 2021. What’s more, the worldwide cybersecurity market is projected to grow by 10.48% from 2023 to 2028, resulting in a market volume of $273.60 billion by 2028.
In this article, we will take a glimpse of some of the latest trends as we explore the rise of artificial intelligence, automated security systems, and more elaborate phishing attacks. We will also make a few predictions about cyber-security threats and the future of cybersecurity professionals.

Modern Cybersecurity Methods

We’ll start with a quick baseline of cybersecurity, which focuses on protecting computer systems, networks, programs, and data from unauthorized access, attacks, damage, or theft.
The primary objective of cybersecurity is to ensure the confidentiality, integrity, and availability of information and computing resources. So, to do this, the industry relies on a range of technologies, processes, and practices specifically designed to safeguard digital assets.
We can consolidate the key components of cybersecurity into these five aspects:
  • Network security: Securing computer networks from unauthorized access and cyber-attacks through firewalls, intrusion detection systems, and encryption.
  • Endpoint security: Securing individual devices (endpoints), such as computers, smartphones, and tablets, to prevent malware infections and unauthorized access.
  • Application and data security: Securing software applications and sensitive data, addressing vulnerabilities in design, development, and deployment, and protecting it through encryption and access controls.
  • Identity and Access Management (IAM): Dealing with user identities and controlling access to systems and data to make sure that only those people authorized are able to interact with specific resources.
  • Security awareness, training, and incident response: Educating users about cybersecurity best practices, raising awareness to prevent social engineering attacks, and developing strategies for incident detection, response, and recovery.

The Cost of Data Breaches

Data breaches pose significant challenges to our modern world because their impact can hit individuals, organizations, and society as a whole. The average cost of a data breach globally is estimated to be $4.45 million. What’s scarier is that during the first quarter of 2023, more than six million data records were exposed worldwide via breaches.
Some common causes of data breaches include weak and stolen credentials (for example, predictable phrases like “Password1” and “123456” make it easy for cybercriminals to gain access to sensitive information), application vulnerabilities, malware, and human error.
For example, T-Mobile suffered three data breaches in 2023. In the first breach, a malicious actor gained access to their systems and stole personal information, including names, emails, and birthdays, from over 37 million customers.
These incidents highlight the ongoing challenges and impact of data breaches on organizations and their customers. So, as we move forward, what can we expect of both breaches and cybersecurity?

Future Trends in Cybersecurity

As our technological landscape evolves, there are a host of strategic cybersecurity trends poised to shape our security posture. These trends, which encompass innovative technologies and the imperative for proactive defense strategies, are set to define the year 2024 and beyond. So, let’s look at each of them in some detail.

Trend #1: Use of AI and Machine Learning

Artificial Intelligence (AI) and Machine Learning (ML) possess the ability to rapidly assess millions of events, detecting diverse threats such as zero-day vulnerability exploits by malware, pinpointing suspicious behavior that could result in phishing attacks, or recognizing actions that may lead to the downloading of malicious code.
So, the sudden accessibility of AI marks a major turning point for the cybersecurity industry. Of course, while these essential tools can aid in the fight against cybercrime, they must be used in combination with human expertise to achieve optimal results. For example, human analysts are still necessary to interpret the results and take appropriate action.

Trend #2: Hybrid Data Centers

Our second trend refers to the integration of on-premises data centers with public or private cloud services. This creates a hybrid infrastructure that requires robust security measures. The COVID-19 pandemic accelerated the growth of the worldwide data center market as a whole. The projected Compound Annual Growth Rate (CAGR) was 4.5% during the 2021 – 2026 period, and the value is expected to get to $251 billion by 2026.
The trend of hybrid data centers is gaining significant traction in 2023. This convergence of virtual, on-premises, and cloud infrastructures reflects the growing need for flexible and scalable data center solutions to meet the escalating data demands of modern businesses.

Trend #3: Hybrid Mesh Firewalls

The adoption of hybrid mesh firewalls is another significant cybersecurity trend that aims to address the challenges of evolving cyber threats. A hybrid mesh firewall is a type of firewall that combines the strengths of traditional defenses with newer, more advanced technologies to create a robust and adaptable security infrastructure. In other words, they are designed to protect data and applications across the entire network. The way this is done is by including features like intrusion prevention systems (IPS), deep packet inspection, application-layer filtering, and threat intelligence to create a multi-layered strategy.
A hybrid mesh firewall architecture is scalable and flexible, so it can allow organizations to adapt to changing network configurations and business requirements. This scalability can help companies grow or migrate their infrastructure to the cloud and integrate with both on-premises and cloud-based environments.

Trend #4: CNAPP (Cloud Native Application Protection Platform)

The rise of CNAPP solutions can help secure cloud-native applications and microservices. So, our fourth trend addresses the unique security requirements of these cloud environments.
CNAPP solutions are designed to streamline monitoring, detecting, and acting on potential security threats. You can think of them as an all-in-one cloud-native application security platform that can minimize human error and reduce the time it takes for teams to be notified after a threat has been detected. These platforms can also provide application and end-to-end cloud security for the entire CI/CD lifecycle, starting at early development and continuing through production.
In short, CNAPP can prevent cybersecurity threats by decreasing the number of cloud misconfigurations and providing combined and unique visibility of risks. This, in turn, results in a more prompt response to threats and less maintenance complexity (as it’s all included in a single tool).

Trend #5: Threat Exposure

Our fifth trend is the increasing exposure to diverse cyber threats due to the expansion of environments, devices, and software—which, in turn, leads to an expanding attack surface and the need for comprehensive security solutions.
For example, the Lookout Mobile Security report identified that 48% of sophisticated cyber actors had the tools and techniques for attacking both mobile and desktop devices. In fact, the average number of unique mobile malware samples grew by 51% in 2022, with approximately 77,000 unique malware samples detected every month!
This means that cybercriminals now have a wider range of potential entry points for malicious activities. The rise of cloud computing, the Internet of Things (IoT), and remote working have also contributed to the proliferation of potential attack vectors. So, we need a more proactive approach to identifying and mitigating new security vulnerabilities.

Trend #6: Geo-Targeting in Phishing Attacks

Geo-targeting in phishing attacks has become a notable trend in the cyber threat landscape, allowing cybercriminals to tailor their attacks to specific locations. In some cases, cybercriminals can employ traditional phishing techniques to hack into networks and extract valuable data and information. So, this approach enables them to create customized, localized phishing pages, increasing the likelihood of successful attacks.
Many of these attacks are engineered based on the recipient’s location. For instance, hackers have been found to use tools like Geo Targetly to create phishing links that redirect users to fake login pages tailored to specific regions. To prevent and mitigate the impact of geo-targeted phishing attacks, organizations will need to continuously update and enhance their security systems. By staying informed about evolving cyber threats and implementing robust security measures, your organization can safeguard its data from the ever-evolving threat of geo-targeted phishing attacks.

Predictions for the Coming Cyber Threat Landscape

We expect the cyber threat landscape to undergo significant changes. So, here are some of our key predictions for 2023 and beyond:
  1. Attacker Focus on Identity and Multi-Factor Authentication (MFA): We anticipate cyber attackers will increasingly target identity and MFA systems, exploiting vulnerabilities in these areas to gain unauthorized access to sensitive data. This prediction aligns with the emerging use of wipers and new attacks on nontraditional targets like edge devices.
  2. Proactive Security Measures: We also expect organizations to adopt more proactive security measures. This includes emphasizing the importance of cybersecurity awareness as well as employee training, and regular security audits to mitigate potential threats.
  3. Leveraging AI for Enhanced Cybersecurity: We believe the use of artificial intelligence and machine learning will become more prevalent in the fight against cybercrime. We expect AI-based security solutions, in particular, to play a crucial role in detecting and responding to threats with unprecedented speed and accuracy.
  4. Growing Sophistication of Cyber Threats: The cyber threat landscape is no doubt going to become even more sophisticated, with cybercriminals leveraging advanced technologies to breach and protect connected systems. This trend will possibly lead to a growing reliance on soft skills such as interpersonal communication, relationship-building, and problem-solving in countering cyber threats.
  5. Expansion of Attack Surface and Need for Comprehensive Security Solutions: We project the expansion of environments, devices, and software to lead to an increasing attack surface. So, organizations will need more comprehensive security solutions to address the evolving threat landscape and protect against a wide range of potential cyber threats.

Conclusion

As we look ahead, it’s important to recognize that the future of cybersecurity is difficult to predict, and the industry is subject to rapid changes. However, we have covered several key trends and predictions that can help us get some insight into what the coming years may hold.
Technologies like AI and ML offer several benefits to the cybersecurity industry, including real-time detection, accurate threat detection, reduced false positives, automated response, and predictive capabilities. Add to that a focus on identity and multi-factor authentication and the expansion of attack surfaces, and the result is cyber threats that are getting increasingly more sophisticated.
Organizations need to focus on addressing these new challenges to stay ahead of the curve. And we know how to help.Coro provides comprehensive security solutions to safeguard critical assets and strengthen the security posture of organizations. We are committed to proactive defenses that align the essential role of people, technical security capabilities, and restructuring of security functions to enable agility without compromising security. So, all of our security modules snap together to give you an AI-driven data engine, endpoint agent, and security platform with everything you need. Contact us today to find out more about what makes us different.

 

Link: https://securityboulevard.com/2024/02/what-will-the-future-of-cybersecurity-bring/?utm_source=pocket_saves

Source: https://securityboulevard.com

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]]> https://www.fintechnews.org/what-will-the-future-of-cybersecurity-bring/feed/ 0 The future of financial planning lies in AI and Blockchain https://www.fintechnews.org/the-future-of-financial-planning-lies-in-ai-and-blockchain/ https://www.fintechnews.org/the-future-of-financial-planning-lies-in-ai-and-blockchain/#respond Wed, 20 Mar 2024 08:33:59 +0000 https://www.fintechnews.org/?p=28472 AI and blockchain could assist in decisions involving investments, taxes and insurance, and open new avenues for income. But financial advisors will still play a key role. By DJ Windle The integration of blockchain and artificial intelligence (AI) technology in financial planning and portfolio construction holds immense potential for efficiency, accuracy and security in the […]

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AI and blockchain could assist in decisions involving investments, taxes and insurance, and open new avenues for income. But financial advisors will still play a key role.

The integration of blockchain and artificial intelligence (AI) technology in financial planning and portfolio construction holds immense potential for efficiency, accuracy and security in the industry.
The use of blockchain and AI in this field could revolutionize the way financial advisors build portfolios and manage client information.

Financial planning

In the field of financial planning, the integration of AI and blockchain technology could provide a much-needed upgrade. AI algorithms could analyze vast amounts of data to assist in making informed decisions regarding investments, taxes and insurance.

The algorithms could make real-time adjustments to financial plans, automate updates to plans based on changing legislation and reduce the risk of errors and fraudulent activities – all in a matter of seconds. This would lead to more efficient and accurate financial plans, freeing up time for financial advisors to focus on providing personalized advice and improving client relationships.

By utilizing the secure and transparent platform provided by blockchain, AI algorithms could also analyze and securely store sensitive financial information such as Social Security income information and tax information. This could allow for faster and more accurate calculations, potentially leading to financial plans that automatically adapt in real time without the need for manual updates.

Portfolio construction

Traditionally, portfolios have consisted of a mix of stocks, bonds, cash and sometimes a few alternative investments. However, with the advent of non-fungible tokens, the future of portfolio construction could be changing.

NFTs allow for the fractional ownership and sale of any asset through smart contracts stored on a blockchain, potentially enabling portfolios to hold unique assets such as music albums, real estate, direct-held businesses, watches and artwork.

These new investment opportunities would allow clients of financial advisors to not only own unique assets, but to generate income from them in various ways.

  1. Through NFT staking, a process in which holders lock up their NFT assets on a platform or protocol, clients could earn rewards for holding onto their assets and helping secure a network.
  2. Owning unique NFT assets that represent actual assets can also lead to passive income streams, such as rental income or royalty payments.
  3. By fractionally selling assets through NFTs, clients have the opportunity to liquidate fractions of holdings and receive lump sums of cash – a process which, previously, may not have been possible with certain assets.
All of this opens up new possibilities for investment and brings us closer to a future where the average person’s portfolio may resemble that of a hedge fund or venture capital fund. By exploring these cutting-edge technologies, financial planners and investors alike may be able to create a more diverse and secure investment portfolio with an extremely wide array of assets.

Estate planning

Estate planning involves the creation and implementation of a plan for the transfer of assets after death or while alive but incapacitated. It’s often a painful and expensive process that can be hard to implement properly.

With the integration of blockchain and AI in estate planning, smart contracts could be used to create, monitor and implement estate plans, potentially reducing the risk of processing problems. The use of AI algorithms in estate planning could provide real-time updates on changes in assets, the law and the market, allowing for a more accurate and up-to-date estate plan.

Smart contracts on the blockchain could automate the distribution of assets and ensure they are allocated according to the wishes of the individual, without the risk of fraud or human error. Blockchain could also ensure that all estate-related information and transactions are secure, reducing the risk of data breaches.

Human vs. technology debate

For decades, the financial advisory business has remained largely unchanged. However, these cutting-edge technologies are set to revolutionize the industry and have for years sparked a human vs. technology debate in the realm of financial advice.

The incorporation of AI and blockchain technologies into the financial industry will automate many routine and complex tasks, freeing financial advisors to focus on higher-value activities that require their unique skills and expertise.

Despite these advancements, the human element of financial advice will remain critical. Clients seek not only knowledgeable financial advice but also a personal touch, and financial advisors who understand the human behind the client will continue to be in high demand.

Preparing for the future

Going forward, financial advisors will need to be proactive in their preparation to effectively incorporate AI and blockchain technologies into their practice. They will need to pay attention to not only the possible implementations of the technology but also to regulation of them and how that will affect their practice.

This means financial advisors will need to stay informed and educated about the latest advancements and developments in AI and blockchain technology and make any necessary updates to their processes to stay ahead of the curve.

Equally important, advisors must educate their clients on the benefits and implications of these new technologies, working together with them to develop plans that leverage their investments. By staying ahead of the curve, financial advisors and their clients can reap the benefits of these new technologies while ensuring their financial plans remain effective, efficient and secure.

As the financial industry evolves and technologies evolve, the role of the human financial advisor will become no less important. The personalized touch that technology simply cannot replicate will never be replaced. Financial advisors who are able to leverage new technologies, stay up to date on the changing landscape around us – while also focusing on improving their communication skills – will be at the forefront of the industry and well-positioned for success in the years to come.

 

Link: https://www.coindesk.com/markets/2023/02/09/the-future-of-financial-planning-lies-in-ai-and-blockchain/?utm_medium=referral&utm_source=feedly&utm_campaign=headlines

Source: https://www.coindesk.com

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]]> https://www.fintechnews.org/the-future-of-financial-planning-lies-in-ai-and-blockchain/feed/ 0 Economic opportunities and challenges of Generative AI https://www.fintechnews.org/economic-opportunities-and-challenges-of-generative-ai/ https://www.fintechnews.org/economic-opportunities-and-challenges-of-generative-ai/#respond Wed, 20 Mar 2024 06:25:43 +0000 https://www.fintechnews.org/?p=33344 By sumedha Economic Opportunities and Challenges of Generative AI Generative AI is a step ahead in the evolution of Artificial Intelligence transforming the business landscape. Be it composing music, investment management, or designing graphics, AI has the potential to perform these tasks. Generative AI has a major potential to contribute across various sectors of the economy. Opportunities for […]

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By sumedha

Economic Opportunities and Challenges of Generative AI

Generative AI is a step ahead in the evolution of Artificial Intelligence transforming the business landscape. Be it composing music, investment management, or designing graphics, AI has the potential to perform these tasks. Generative AI has a major potential to contribute across various sectors of the economy.

Opportunities for Generative AI

It has been found that Generative AI has diverse opportunities across four key areas including:

Customer operations

Generative AI has diverse functions in customer operations that improve the experience of the customers. It has increased the productivity of agents through AI assistants to enhance their agents’ skills. AI generative has provided services to customers by automating interactions with the customers.

Here are a few cases where Generative AI has done operational improvement:

  • Customer self-service: Generative AI chatbots inquire about customer queries and provide personalized responses to them. This has improved the quality of interactions with customers and has enabled the customer teams to resolve queries that can be resolved only through human agents.
  • Reduced response time: Generative AI can reduce the time consumption that the human sales representative spends on responding to customers by assisting them in real time.
  • Increased sales: Generative AI processes the data of customers and tries to find out the customer preferences as per their browsing histories. By gathering insights from customer information, Generative AI helps to enhance the quality of products and services.

Marketing and sales

Generative AI can generate content with different specifications that increase customer value and help retain customers at a higher scale as compared to traditional marketing techniques used. The use of Generative AI in marketing can help to overcome the problem of different datasets that involve inconsistent, unstructured, and disconnected data by interpreting the abstract data sources of varying structures. This will help to synthesize the customer feedback and customer behavior to generate marketing strategies for target customers. These can be used to synthesize trends from unstructured data in social media, academic research, and customer feedback.

Potential operational benefits from using generative AI for marketing include the following:

  • Efficient and effective content creation: Generative AI facilitates consistency from the process of ideation of content to the final stage of content drafting. It unlocks a uniform voice and writing style that signifies the brand thus reducing the time required in the process. This enhances the personalization of marketing messages for different customer segments.
  • SEO optimization: Generative AI can help to optimize SEO and sales technical components used as marketing techniques to increase sales.
  • Product discovery and search personalization: By browsing customer histories, Generative AI can leverage customer preference to generate the relevant product and provide personalized descriptions of the product. This enables the retail and travel organizations to improve their e-commerce sales.

Software engineering:

Software engineers can use generative AI for augmented coding and use natural language for Large Language Models (LLM) to develop different applications. With Generative AI the scope of software engineers has expanded making the machine language convenient for them. Information Technology is a significant department in every organization and has been growing in a massive scale.

Potential operational benefits from using generative AI for software engineering include:

Increase in product value: Be it a gadget or automobile, the use of Generative AI has increased the value of a product by upgrading and enhancing its product features. For example: In vehicles, digital features such as parking assistance and adaptive cruise control increase the value of the product.

Product R&D:

Generative AI has the potential to generate generative design techniques in product research and development. Foundational models along with Generative AI can have a wider scale of applications in product research and development. These can increase the number of products where the generative design can be applied. As of now, the foundation models lack the capabilities to design products across various industries.

Potential operational benefits from using generative AI for product R&D include:

  • Enhanced design: Generative AI helps in designing the product by efficient selection and use of materials.
  • Improved product testing and quality: Using Generative AI in generative design, the quality of the product can be enhanced. Generative AI can also accelerate the testing time of complex products.

Challenges of Generative AI

Along with the huge opportunities, Generative AI is not without challenges. Here we have enlisted a few challenges of Generative AI:

Ethical Considerations

One of the challenges that Generative AI may face is addressing ethical considerations. It is important to ensure that AI follows ethical guidelines and does not generate offensive material. Developers must work to prevent data bias which will lead to transparency and fairness in the Generative AI systems.

Computational Resources

The computational resources required for deploying large generative models is one for a major challenge for smaller firms. Training these models requires excessive resources as powerful hardware and a large computational infrastructure.

Security Concerns

As these models can be vulnerable to adversarial attacks, security concern is a major challenge. Adversarial actors may exploit the models to manipulate the result, leading to misleading content.
With technological advancements and regulatory guidance, Generative AI has been growing responsibly and innovatively. Generative AI is poised to redefine our lives not just on a professional level but also from a personal perspective in the future.

 

Link: https://www.analyticsinsight.net/economic-opportunities-and-challenges-of-generative-ai/

Source: https://www.analyticsinsight.net

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]]> https://www.fintechnews.org/economic-opportunities-and-challenges-of-generative-ai/feed/ 0 Ethereum could top $14,000 next year alongside Bitcoin boom https://www.fintechnews.org/ethereum-could-top-14000-next-year-alongside-bitcoin-boom/ https://www.fintechnews.org/ethereum-could-top-14000-next-year-alongside-bitcoin-boom/#respond Tue, 19 Mar 2024 19:48:19 +0000 https://www.fintechnews.org/?p=33629 Spot Ethereum ETFs should get the green light by May, and the bank says the asset will only go up from there. By Mat Di Salvo British multinational Standard Chartered isn’t just bullish on Bitcoin—Ethereum is also going to the moon, its analysts say. A Monday report from the bank claimed that the second-biggest digital asset could […]

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Spot Ethereum ETFs should get the green light by May, and the bank says the asset will only go up from there.

By Mat Di Salvo

British multinational Standard Chartered isn’t just bullish on Bitcoin—Ethereum is also going to the moon, its analysts say.
A Monday report from the bank claimed that the second-biggest digital asset could hit $8,000 by the end of this year, and $14,000 is possible by the time 2025 is up.
If, that is, spot Ethereum exchange-traded funds (ETFs) get approved, Geoffrey Kendrick, head of forex and crypto research at the firm, said in the note.
The price of Ethereum is currently hovering slightly above $3,500 per coin, CoinGecko data shows.
Several high-profile fund managers have filed paperwork with the Securities and Exchange Commission (SEC) to release Ethereum ETFs. Such investment vehicles would expose traditional investors to the cryptocurrency via shares that trade on a stock exchange.
Kendrick also said that the network’s recent Dencun upgrade could be the reason for Ethereum shooting up rapidly.
The network behind the second-biggest cryptocurrency was upgraded last week. Developers say the improvement will make transaction fees on the blockchain super cheap.
Kendrick added that the upgrade and lower costs on the network make Ethereum “more competitive.”
Standard Chartered said in a different research note Monday that Bitcoin could hit $150,000 per coin by the end of this year if the newly approved ETFs continue to be popular.
In January, the U.S. Securities and Exchange Commission approved 11 of the investment vehicles.
They have so far been hugely popular with investors—and the massive inflows have pushed the price of Bitcoin up significantly.

 

Link: https://decrypt.co/222258/ethereum-headed-for-14000-in-2025-alongside-bitcoin-boom-standard-chartered

Source: https://decrypt.co

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]]> https://www.fintechnews.org/ethereum-could-top-14000-next-year-alongside-bitcoin-boom/feed/ 0 Blockchain has lost its decentralized spirit https://www.fintechnews.org/blockchain-has-lost-its-decentralized-spirit/ https://www.fintechnews.org/blockchain-has-lost-its-decentralized-spirit/#respond Tue, 19 Mar 2024 13:34:50 +0000 https://www.fintechnews.org/?p=33619 Decentralization must be the cornerstone, not a mere aspiration, of blockchain’s journey By CHRIS SWENOR A narrative has taken root in the realm of blockchain technology, one that champions the gradual transition from centralized control to a decentralized future. Yet this story, often recited by those at the helm, overlooks a fundamental truth about power: Once […]

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Decentralization must be the cornerstone, not a mere aspiration, of blockchain’s journey

By CHRIS SWENOR
A narrative has taken root in the realm of blockchain technology, one that champions the gradual transition from centralized control to a decentralized future. Yet this story, often recited by those at the helm, overlooks a fundamental truth about power: Once seized, it is rarely surrendered without a struggle.
This belief that a centralized beginning can smoothly transition to a decentralized ethos is more myth than reality, akin to convincing a child to relinquish their tight grasp on a coveted sweet. The intention here isn’t to cast venture capitalists or early stakeholders as adversaries — it’s to advocate for a balance, for fairness that underpins the very foundation of blockchain.
I often hear, “We will start out centralized, and we will become more decentralized later.” But I believe this is nonsense!
One of the hardest things to give up is power. This notion is vividly illustrated by the French Revolution, a historical event that epitomizes the struggle to redistribute power from an entrenched monarchy to a democratic governance structure.
Despite the promise of liberty, equality and fraternity, the revolution faced immense resistance from those unwilling to cede control, leading to a turbulent period of conflict and transformation. This historical episode serves as a poignant reminder that once power is acquired, relinquishing it is a far more formidable challenge than many anticipate.

The illusion of control

As blockchain ventures flourish, the grip of those in control tightens, with early investors and builders basking in the success their influence has wrought.
Conversely, during tumultuous times, these same figures embark on campaigns of reassurance, painting over cracks while strategically planning their exits. This stark duality reveals a profound flaw in the prevalent “centralize now, decentralize later” mantra, significantly underestimating the seductive allure of power and the inherent challenges in relinquishing it once established.
The promise of distributed authority is at the heart of the blockchain revolution. The reimagining of governance where innovation serves not just the circulation of capital, but empowers and amplifies a multitude of voices (not just those traditionally heard in the corridors of wealth). Yet, a troubling reality overshadows this ideal: A staggering concentration of over 80% of blockchain assets in the hands of a mere 1% of wallets.
Regardless of whether these assets make up projects that aim to fully decentralize or not, the fact of the matter is that early stakeholders and VCs often hold the largest piece of the pie for new blockchains simply because they come in first, when it’s riskiest.
This imbalance transcends mere issues of fairness, striking at the very viability of blockchains as engines of innovation and inclusivity.
It’s a travesty that the vast majority of value creation does not come from this 1%, underscoring a critical disconnect. Those who contribute the most to the ecosystem often have the least say in its direction and the smallest share in its success — those early VCs holding all the tokens do provide impact with their initial investments, but their participation usually stops there. And because the protocol’s governance is based on the ownership of the token, the new builders don’t have the weight to make major decisions by the major token holders.
This stark discrepancy isn’t just unfair; it’s fundamentally counterproductive, eroding the incentive for innovators, developers and community members to pour their energy and creativity into the ecosystem.
By sidelining the very individuals who are the lifeblood of innovation, blockchain ecosystems risk stagnating, as the centralized accumulation of benefits stifles the diverse input and collaboration essential for breakthroughs and resilience.
Such a structure threatens the long-term sustainability and incentive for valuable contributors to remain engaged and invested in these projects. The long-term viability of blockchain technology depends on its ability to foster a genuinely inclusive environment where contributions are recognized and rewarded appropriately, ensuring that all participants have a stake in the ecosystem’s success.

It’s time to start again

Where do we go from here?
I believe that many of the first-generation blockchains, the foundational layers that have been the bedrock of the industry, have veered too far off course. Their structures have solidified around centralization to a point where a return to true decentralization might no longer be feasible.
This isn’t to say they’re doomed for failure; far from it. The potential of blockchain technology is vast, its future inherently multichain, promising a landscape rich with diverse and interconnected networks.
However, we need to start afresh if we want to harness this potential fully. This proposition might seem daunting, yet considering the broader timeline of technological evolution, we’re still in the nascent stages of blockchain development.
The beauty of this space is its foundation in open source principles. Almost all blockchain technologies are open to being studied, modified and repurposed. This openness paves the way for new projects to emerge — i.e, reboots of existing chains, each carrying a distinct mission and fostering a unique culture.
Embarking on this path isn’t merely about technological innovation; it’s about reimagining the ethos that guides blockchain development. By initiating new projects with decentralization as a core principle, we stand a chance to correct the course.
This approach doesn’t merely replicate what came before, but builds upon it, learning from past missteps to create blockchains that are truly from the people, by the people and for the people.
To visualize the potential paths of blockchain, consider two atomic reactions: fusion and fission. A blockchain driven by a diverse, invested community is akin to a fusion reactor. It’s efficient, sustainable and produces a continuous outflow of energy. This model represents a decentralized ecosystem where power and rewards are evenly spread, fostering innovation and participation from all stakeholders. The result is a robust and vibrant network, capable of long-term growth and adaptation.
In contrast, a network dominated by a few mirrors the principles of a fission bomb: initially powerful, but ultimately leading to destruction. This reflects a centralized blockchain ecosystem, where concentrated power leads to rapid gains that are not sustainable over time. Such a structure can stifle innovation and lead to a fragile system, prone to collapse.
This analogy underlines the crucial choice blockchain faces between sustainable growth and short-term gains, emphasizing the need for a decentralized approach to ensure the technology’s long-term viability and success.

Decentralization as a starting point, not just a distant dream

Decentralization must be the cornerstone, not a mere aspiration, of blockchain’s journey. It’s about democratizing power, fostering a community where everyone’s voice matters and every contribution is valued from the outset.
At this pivotal juncture, the trajectory of blockchain hinges on our resolve to anchor it in decentralization from the very beginning. By prioritizing decentralization as our foundational principle, we chart a course toward a future where blockchain serves as a bedrock for equitable growth and democratic engagement.
Let’s seize this opportunity to redefine the landscape, ensuring blockchain remains a tool for empowering the many, not just the few. In doing so, we not only realize the full potential of blockchain technology but also contribute to the creation of a fairer, more inclusive world.
This is not just the path to technological innovation, but a step towards a more equitable and collaborative ecosystem.
We are still early.

 

Link: https://blockworks.co/news/blockchain-lost-decentralized-spirit?utm_source=pocket_saves

Source: https://blockworks.co

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]]> https://www.fintechnews.org/blockchain-has-lost-its-decentralized-spirit/feed/ 0 Why Solana will prevail despite Ethereum ETFs https://www.fintechnews.org/why-solana-will-prevail-despite-ethereum-etfs/ https://www.fintechnews.org/why-solana-will-prevail-despite-ethereum-etfs/#respond Tue, 19 Mar 2024 10:47:12 +0000 https://www.fintechnews.org/?p=33347 Ethereum may have spot ETFs in a few months, but Solana has superior speed and UX design. Its market dominance is inevitable. Many investors have begun to speculate that many altcoins will also have ETFs, which has led to price appreciation and a lot of speculation. But all the enthusiasm has led many to overlook […]

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Ethereum may have spot ETFs in a few months, but Solana has superior speed and UX design. Its market dominance is inevitable.

Many investors have begun to speculate that many altcoins will also have ETFs, which has led to price appreciation and a lot of speculation. But all the enthusiasm has led many to overlook an obvious contender to Ethereum — Solana SOL$110, which has beat many expectations and continues to boast a sophisticated tech team.
There has been no shortage of stories talking about Solana and its links to FTX founder Sam Bankman-Fried, with many predicting its demise. However, Solana has weathered the storm according to a handful of metrics. For instance, the number of active addresses on the network has nearly reached its 2022 level. The number of new addresses has continued to grow at almost as fast a rate as it was in 2022 as well. In fact, the number of unique active wallets (UAW) is up from 2022.
And that’s not to mention the reality that active addresses can be manipulated. An alternative metric, namely capital efficiency (i.e., decentralized exchange volume per dollar of total value locked), suggests Solana has outpaced Ethereum in recent months.
Unique active users, volume and transactions on Solana from January 2021-24. Source: dAppRadar
To be sure, Solana isn’t operating perfectly, but it has clearly defied the expectations of many who thought it might collapse following the FTX blow-up. A large part of its recovery after FTX, and growth since then, has been driven by seemingly wise leadership, which in turn affects their technological investments, strategy, and ultimately community engagement.
Time-value locked (TVL) on Ethereum, Solana and others. Source: DeFi 
The blockchain technology landscape, particularly at the layer-1 (L1) level, currently falls short of the transformative financial future many envisioned. While the initial promise of blockchain offered a vision of faster, cheaper, more efficient, and censorship-resistant financial systems, the reality today presents significant challenges.
Key Solana statistics. Source: HelloMoon
The L1 landscape is characterized by fragmentation of liquidity across a range of layer-2 solutions (L2s) and an absence of scalability that hampers efficiency and user experience in the decentralized exchange space, coupled with concerns about the degree of centralization in the centralized exchange space. This fragmentation has led to a piecemeal ecosystem where the seamless integration and interoperability necessary for a truly revolutionary financial system remain elusive. As a result, the blockchain community finds itself at a crossroads, seeking solutions that can fulfill the early promises of this technology.
Efforts to scale blockchain technology today are diverse, with each project taking a unique approach to overcome limitations in speed, efficiency, and interoperability. The Ethereum blockchain, for example, is pursuing a multi-layer strategy, incorporating both layer-2 scaling solutions and sharding to increase transaction throughput without sacrificing security.
Meanwhile, projects like Cosmos ATOM $11.11 and Polkadot $8.06 are exploring a multi-chain architecture that allows for specialized blockchains to communicate and transact seamlessly. Solana, along with newer entrants like Sui and Aptos, proposes an alternative approach, focusing on high throughput and efficiency at the layer-1 level itself. Each of these approaches represents a different path towards achieving scalability, with their own set of trade-offs between decentralization, security, and performance. The variety of solutions underlines the complexity of the scalability challenge and the blockchain community’s commitment to finding a way forward.
Solana stands out for its unique approach to addressing the core issues plaguing the blockchain ecosystem and its robust community support — evidenced by its resilience post-FTX and the success of its global hackathons, which underscore the platform’s strong foundation. And significant UX improvements, notably with mobile integration through Saga phones and competitive platforms like Jupiter — which rivals Uniswap — make Solana highly accessible.
Solana has also demonstrated its ability to handle finance at scale, offering 400ms block times for finality compared to Ethereum’s longer durations, along with initiatives like Firedancer and local fee markets, further exemplify Solana’s technological edge. The platform’s emphasis on seamless transactions without the need for bridging or dealing with fractured liquidity, coupled with its application in real-world solutions like decentralized physical infrastructure (DePIN), positions Solana as a leader in the blockchain space.
That’s not to say that Solana is guaranteed to surpass Ethereum, or even Bitcoin, but it does mean that Solana is no longer an underdog. And perhaps before any altcoin gets a spot ETF, Solana will have one of its own that will bring greater competition to the blockchain space.

 

Link: https://cointelegraph.com/news/solana-will-prevail-despite-ethereum-etfs?utm_source=pocket_saves

Source: https://cointelegraph.com

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]]> https://www.fintechnews.org/why-solana-will-prevail-despite-ethereum-etfs/feed/ 0 The fusion of AI and Blockchain in Cryptocurrencies https://www.fintechnews.org/the-fusion-of-ai-and-blockchain-in-cryptocurrencies/ https://www.fintechnews.org/the-fusion-of-ai-and-blockchain-in-cryptocurrencies/#respond Tue, 19 Mar 2024 08:22:56 +0000 https://www.fintechnews.org/?p=32919   In the dynamic world of technology, the convergence of Artificial Intelligence (AI) and blockchain stands as a beacon of innovation, particularly in the cryptocurrency sector. This fusion is not just a mere combination of two technologies; it’s a synergy that is reshaping the very foundation of digital finance. Blockchain and AI Blockchain and AI […]

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In the dynamic world of technology, the convergence of Artificial Intelligence (AI) and blockchain stands as a beacon of innovation, particularly in the cryptocurrency sector. This fusion is not just a mere combination of two technologies; it’s a synergy that is reshaping the very foundation of digital finance.

Blockchain and AI

Blockchain and AI represent two of the most significant technological advancements of our era, each with its distinct characteristics and applications, especially in the world of cryptocurrencies like Bitcoin and Ethereum.
Blockchain Technology: At its core, blockchain is a distributed ledger technology, but it extends far beyond the realm of digital currencies. It creates an immutable chain of records, known as blocks, linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data, which ensures transparency and security in digital dealings. This system is decentralized, meaning it doesn’t rely on a central authority, thereby reducing risks related to central points of failure. Its applications are diverse, ranging from supply chain management to voting systems, reflecting its potential to revolutionize various industries by providing a secure and transparent way of recording transactions and managing data.
Artificial Intelligence (AI): AI, on the other hand, is a broad field of computer science concerned with building smart machines capable of performing tasks that typically require human intelligence. It encompasses various technologies including machine learning (ML), where algorithms improve automatically through experience; natural language processing (NLP), which enables computers to understand and interpret human language; and robotics, a branch of AI that focuses on creating machines capable of performing tasks in the physical world. AI excels in analyzing large, complex data sets, recognizing patterns, and making predictions, which can be invaluable in various fields, from healthcare diagnostics to financial market analysis.

A Synergistic Relationship

When AI and blockchain come together in the realm of cryptocurrencies, they create a potent mix of security and intelligence. Blockchain provides a secure and transparent platform for transactions, while AI contributes advanced analytics and automation. This fusion enhances the efficiency, reliability, and functionality of cryptocurrencies.
The landscape of AI and blockchain in cryptocurrencies is dotted with innovative projects:
Projects like The Graph are revolutionizing data indexing and querying in blockchain networks, making it easier to access and interpret blockchain data.
Rendering platforms are leveraging the Ethereum blockchain for distributed GPU networks, facilitating high-speed rendering and content creation.
AI marketplaces, such as SingularityNET, enable the exchange of AI services, showcasing the potential of decentralized AI solutions.

Impactful Applications in Cryptocurrency

  • Interoperability: The integration of AI enables seamless interaction between different blockchain networks, facilitating data sharing and transactions across various platforms.
  • Decentralized Finance (DeFi): AI’s role in DeFi is increasingly prominent, offering enhanced risk assessment, efficient lending protocols, and yield optimization strategies.
  • Security Enhancement: AI algorithms play a pivotal role in identifying and mitigating security threats within blockchain networks. They enable real-time detection of fraudulent activities and anomalies in transaction patterns.
While promising, the fusion of AI and blockchain faces hurdles such as ensuring scalability, dealing with regulatory frameworks, and addressing ethical concerns of AI deployment. Overcoming these challenges is vital for the continued advancement of this technology.

The Future of AI in Cryptocurrency

The future of AI in cryptocurrencies is rich with possibilities:
  • AI Coins: Represent a new wave of digital assets that are dynamic and intelligent, capable of adapting to user needs and network demands.
  • Personalized Experiences: AI algorithms can tailor user experiences in decentralized applications, enhancing engagement and satisfaction.
  • Scalability Solutions: AI can dynamically adjust blockchain network parameters to handle varying levels of demand, thereby addressing one of the major challenges in blockchain technology.
In 2023, the cryptocurrency world is witnessing a remarkable transformation, thanks to the fusion of AI and blockchain technologies. This integration is not just a fleeting trend; it’s a pivotal development that is reshaping the future of digital finance. AI, with its advanced algorithms, is playing a key role in deciphering complex market dynamics and offering predictive insights for cryptocurrency trading. Blockchain, known for its robust security and transparency, is fortifying the trust in digital transactions.
Together, they are driving the emergence of AI-powered trading platforms, enhancing investment strategies and broadening the scope of digital assets. Furthermore, blockchain’s application extends beyond finance, with significant implications in industries like healthcare, indicating its versatile and far-reaching impact. This year marks a turning point, as the symbiosis of AI and blockchain sets new standards and opens up exciting possibilities in the digital economy.
The convergence of AI and blockchain in cryptocurrencies is more than a technological advancement; it’s a paradigm shift in digital finance. This fusion is poised to redefine the way we view security, efficiency, and innovation in the cryptocurrency sector. As we continue to explore and harness the potential of this synergy, we stand at the threshold of a new era in the digital economy, one that promises greater inclusivity, transparency, and efficiency.

 

Link: https://bigdataanalyticsnews.com/ai-blockchain-in-cryptocurrencies/?utm_source=pocket_saves

Source: https://bigdataanalyticsnews.com

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]]> https://www.fintechnews.org/the-fusion-of-ai-and-blockchain-in-cryptocurrencies/feed/ 0 Web3 security innovations to protect against Crypto scams https://www.fintechnews.org/web3-security-innovations-to-protect-against-crypto-scams/ https://www.fintechnews.org/web3-security-innovations-to-protect-against-crypto-scams/#respond Tue, 19 Mar 2024 07:02:16 +0000 https://www.fintechnews.org/?p=30239   Web3 is an exciting space that’s brimming with innovative concepts around decentralization and giving users back control of their online identities and data. It’s the driving force of new technologies like cryptocurrency, non-fungible tokens and the metaverse, and once fully developed it promises to radically alter the way people interact and work online. But […]

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Web3 is an exciting space that’s brimming with innovative concepts around decentralization and giving users back control of their online identities and data. It’s the driving force of new technologies like cryptocurrency, non-fungible tokens and the metaverse, and once fully developed it promises to radically alter the way people interact and work online.
But for all of the promises of Web3, many dangers lurk. In 2022, hackers and scammers managed to steal more than $3.9 billion worth of crypto assets, according to Immunefi. Malicious actors in Web3 are numerous and extremely creative, using sophisticated fraud techniques to catch people off guard and relieve them of their digital assets. Some of the most common dangers faced by Web3 users include smart contract vulnerabilities, phishing attacks, copymints and poisoning attacks. To avoid them, Web3 users need to know how these methods work.

Common Web3 Attacks

One of the easiest ways to fall victim to a Web3 hacker is to end up at a malicious “phishing” website that looks and feels like a legitimate one. Criminals make copies of genuine websites using a slightly different URL, such as Openseea.io instead of Opensea.io and hope to catch users unawares. They use a number of creative methods to direct users to these fake websites, such as sending an official-looking email or using a spoofed celebrity social media account to send messages. As soon as someone enters their credentials into the fake site, the attacker can gain control of their account on the official website and steal whatever assets they’re holding.
Another threat is malicious smart contracts that integrate dangerous logic, such as an ability to restrict a transaction, burn tokens, delegate calls to other smart contracts, or give the contract creator access to the user’s wallet. Scammers can either create their own, malicious dApps with dodgy smart contracts, or use a vulnerability in a legitimate smart contract to adapt its code.
Copymints refer to fake or plagiarized NFTs that violate the rights of the author. For instance, someone may try to fake a popular NFT collection such as the Bored Ape Yacht club and sell it for bargain prices. Only later will the buyer realize that it has no value.
Finally, poisoning attacks occur when a scammer creates a wallet address where the first and last characters are the same as the user’s own wallet. The idea is that the user may mistakenly believe they are sending funds to their own wallet address, when in fact they’re sending their assets directly to the scammer.

Web3 Security Innovations

The good news is that the Web3 space has developed a number of innovative tools that aim to counter these kinds of crypto scams. 
One of the best in the business is Blockfence, which has created a browser extension that acts as a protective layer that guards against suspect transactions. Blockfence combines complex analysis with machine learning algorithms and data on hackers and vulnerabilities gathered by the Web3 community to safeguard user’s transactions. It can prevent many kinds of attacks, including phishing attacks and malicious smart contracts.
When a user installs Blockfence in their browser, they will receive automated alerts each time they attempt to approve a transaction using a linked wallet such as MetaMask. Blockfence will warn them anytime the address they’re sending funds to is listed as suspicious, enabling that user to back out if they’re uncertain. Blockfence’s knowledge of vulnerabilities and suspect addresses is enhanced by a strong network of security partners. In addition, it offers a transaction interpreter powered by generative artificial intelligence, similar to ChatGPT, that helps users to understand by explaining in plain English what will happen with each transaction.
A similar offering comes from TrustCheck, which aims to safeguard Web3 transactions by verifying crypto wallet addresses, token collections, smart contracts and URLs before the user interacts with them. It will highlight potential problems such as risky transaction approvals, fake websites, dangerous signing requests and more.
Before each transaction is approved, TrustCheck provides the user with a visualization of what will happen, with token metadata such as names and addresses presented in human readable data.
Immunefi aims to secure Web3 in a different way through its bug bounty platform, which provides rewards to benevolent hackers who can find vulnerabilities in smart contracts or dApps and warn the community. This kind of auditing is critical to the safety of Web3 and especially the DeFi ecosystem, which uses very complex smart contracts to facilitate multi-swap transactions. Immunefi claims to have saved more than $25 billion worth of digital assets from being hacked.

Proactive Prevention Is Best

While the above tools are recommended and will certainly help to prevent most Web3 attacks, users should always follow best practices to minimize their chances of falling victim to scammers. 
The single worst mistake anyone can make is to share their private key or seed phrase. There is no reason to do this ever, and no reputable company will ever ask for it. The best way to store this information is to write it down somewhere on a piece of paper and keep it hidden in a safe place. Storing it on a computer or mobile device is not advised, as these can also be hacked.
Moreover, users should always store their funds in a non-custodial wallet rather than a custodial one. While custodial wallets are simpler to recover in the event of getting locked out, they also mean trusting someone else to store your funds for you. As FTX users found out to their horror, that really isn’t a good idea, no matter how reputable the company might seem. 
In addition, users should always stay very focused whenever they’re about to approve a transaction or sign a message. Care should be taken to double-check the recipient’s address and the amount being sent. Never respond to messages received on social media, and always enter URLs of crypto-related websites manually to avoid being spoofed.

Security Is Your Problem

The decentralized nature of Web3 means there’s no fallback in the event you’re scammed, so security is solely your responsibility. Beware that even the most sophisticated crypto users have fallen victim to hacks and scams before, so always take great care and take advantage of Web3 security tools that can double check the safety of your crypto transactions.

 

Link: https://www.analyticsinsight.net/web3-security-innovations-to-protect-against-crypto-scams/?utm_source=pocket_saves

Source: https://www.analyticsinsight.net

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