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Blockchain & Web3 Weekly Bytes Edition #21
Fortune 100's Web3 Surge, Bitcoin's $200K Target, and Biden's Campaign Embracing Crypto
Jun 15, 2024
Hello Fellow Enthusiast,
Welcome to this week's edition of Blockchain & Web3 Weekly Bytes! I have some exciting updates and insights lined up for you. Here's what's coming up:
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Tech Spotlight: Understanding UTXO vs. Balance-Based Accounting Models.
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Week's Highlights: Fortune 100 companies boost their Web3 projects by 39%, Bernstein analysts raise Bitcoin price target to $200,000 by 2025, and Biden's campaign considers accepting crypto donations.
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Affiliate Spotlight: Discover the benefits of NordVPN for secure browsing.
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Digital Asset Spotlight: An in-depth look at TRON (TRX) and what’s new with this dynamic digital asset.
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Chart of the Week: A detailed look at the distribution of all 21 million Bitcoin.
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Video Spotlight: Debunking the top 5 myths about Bitcoin.
Stay informed and ahead with the latest from the blockchain and Web3 world. Let's get started!
🧐 Weekly Trivia
Which famous tech entrepreneur referred to blockchain technology as "a great opportunity to expand the internet's potential" in the early 2000s?
A) Bill Gates
B) Steve Jobs
C) Jeff Bezos
D) Marc Andreessen
*Find the answer at the bottom of this newsletter.
🌟 Tech Spotlight – UTXO vs. Balance-Based Accounting Models
When exploring blockchain technology, two main accounting models stand out: UTXO (Unspent Transaction Output) and Balance-Based models. These models determine how transactions are recorded and managed, and each has unique features and benefits. Let's break them down with simple, relatable examples.
UTXO Model
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Where it's used: Bitcoin
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How it works: Think of UTXO like cash in your wallet. Each transaction output is treated as a separate coin. When you make a transaction, you use these specific coins and receive change if needed.
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Example: Consider you have a $50 bill, and you buy something for $20. You hand over the $50 bill and receive a $30 bill as a change. Your wallet now holds this new $30 bill for future use. In Bitcoin, this new $30 bill is your unspent transaction output.
Balance-Based Model
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Where it's used: Ethereum
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How it works: This model functions like a bank account. Each account has a total balance that gets updated with every transaction.
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Example: Think of your checking account. When you deposit $50, your balance goes up by $50. When you spend $20, your balance decreases by $20. The remaining balance is always displayed as the total amount available for use.
Why These Models Matter
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Security and Simplicity: UTXO offers a clear and straightforward way to track and validate transactions, reducing the risk of double-spending.
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Flexibility and Functionality: Balance-based models allow for more complex transactions and interactions, which is why Ethereum can support sophisticated smart contracts and decentralized applications (dApps).
Key Takeaway
Understanding UTXO and balance-based models allows you to appreciate how different blockchains manage transactions and what makes each unique. Whether you use Bitcoin for simple, secure transactions or explore Ethereum's versatile ecosystem, these foundational concepts enhance your blockchain experience.
📰 This Week’s Blockchain and Web3 Highlights
Fortune 100 Companies Boost Web3 Projects by 39%: A new report from Coinbase reveals that Fortune 100 companies have ramped up their Web3 initiatives by 39% over the past year. Leading sectors include Bitcoin ETFs, asset tokenization, and stablecoins.
Bernstein's Bold Bitcoin Prediction: Bernstein analysts have upped their Bitcoin price target to $200,000 by the end of 2025 from the previous $150,000. They've also given MicroStrategy an outperform rating, targeting $2,890 for its stock.
Spot Ethereum ETFs on the Horizon: SEC Chairman Gary Gensler signals that spot Ethereum ETFs are likely to debut in the U.S. this summer, although the security vs. commodity debate continues.
Biden's Campaign Eyes Crypto Donations: President Biden's re-election team is considering accepting crypto donations through Coinbase Commerce, following a similar move by Donald Trump's campaign.
Ex-Goldman Exec Joins Anchorage Digital: Connie Shoemaker, COO and CFO of Bridgewater Associates' parent company, has joined the board of Anchorage Digital Bank, adding financial expertise to the crypto firm.
Trezor Rolls Out New Hardware Wallet: Trezor introduces its new Safe 5 hardware wallet, featuring a Bitcoin-only version, and launches Trezor Expert, a personalized onboarding service for their cold-storage devices.
Taiwan Launches Crypto Industry Association: Taiwan forms a new crypto industry association to create self-regulatory guidelines under the oversight of the Financial Supervisory Commission, which mandates AML compliance for crypto firms.
MicroStrategy Boosts Bitcoin Investment: MicroStrategy increases its convertible note offering by 40% to $700 million, demonstrating its ongoing commitment to Bitcoin. The company's shares saw a 2% rise following this announcement.
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😂 A Little Blockchain Humor Break 😂
Source: CoinMarketCap
📊 Chart of the Week: Bitcoin Distribution Overview
This week's chart breaks down the distribution of the 21 million Bitcoin, offering a clear view of how this digital asset is spread across various holders.
Key Takeaways
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Individual Holdings: 57% of Bitcoin is held by individuals, highlighting the significant portion of Bitcoin in the hands of everyday users.
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Lost Bitcoin: 17.6% of Bitcoin is considered "lost," which means these coins are likely inaccessible forever, reducing the actual circulating supply.
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Yet to Be Mined: 6.6% of Bitcoin remains to be mined, representing the future potential for mining activities.
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Satoshi's Wallet: 5.2% of Bitcoin is held in the wallet of Bitcoin's creator, Satoshi Nakamoto, adding an element of mystery and historical significance.
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Institutional and Government Holdings: 3.9% is held by Bitcoin ETFs, 3.6% by corporations, and 2.7% by governments, reflecting the growing institutional and governmental interest in Bitcoin.
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Miners: 3.4% of Bitcoin is held by miners, showing the distribution among those who secure and validate the network.
Looking Ahead
As we continue to see how Bitcoin is distributed and held, these dynamics will shape the future of Bitcoin's market behavior and its role as a financial asset. The distribution chart provides a fascinating glimpse into the current state of Bitcoin and its holders, reflecting the diverse interest in this groundbreaking digital currency.
Source: Simply Bitcoin
🎥 Weekly Video Spotlight: Top 5 Bitcoin Myths Debunked
This week, I've chosen a video that's a real eye-opener: "Top 5 Bitcoin Myths Debunked". This video is perfect for clearing up some of the most common misunderstandings about Bitcoin.
Why Watch?
This video provides straightforward, factual information that helps dispel common myths about Bitcoin. Whether you're new to Bitcoin or already involved in the space, it's a valuable resource.
Watch "Top 5 Bitcoin Myths Debunked" on YouTube now: Watch Here. Stay informed with clear and accurate insights into Bitcoin!
Thank you for joining me for this week's edition! We explored Fortune 100 companies boosting their Web3 projects, Bernstein's new Bitcoin price target, and Biden's campaign considering crypto donations. We also examined the UTXO vs. Balance-Based accounting models, highlighted the latest from TRON, and looked at Bitcoin's distribution.
Trivia Answer: D) Marc Andreessen
I appreciate your continued support and enthusiasm. Your feedback is always welcome as we build this community together. Catch you next week with more updates and insights!
Best Regards,
Ajay Tomar
Disclaimer:
Content in this newsletter is for educational and informational purposes only and is not intended as financial, tax, or legal advice. Always do your research and consult with a professional before making financial decisions. As a solopreneur, I may earn commissions from affiliate links in this newsletter at no extra cost to you. This support helps me bring you valuable content. I only endorse products I trust and believe could benefit you.
💡 Weekly Digital Assets Spotlight
Spotlight on TRON (TRX)
TRON is a blockchain-based platform focused on building a decentralized internet and enabling seamless content sharing. It aims to empower content creators and eliminate the middleman, ensuring they get full credit for their work.
Key Features
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High Throughput: TRON can handle thousands of transactions per second, making it one of the fastest blockchain platforms.
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Low Fees: Transactions on the TRON network are known for their minimal fees, providing an economical way to transfer value.
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Smart Contracts: TRON supports smart contracts, allowing developers to create decentralized applications (dApps) on its platform.
Recent Highlights
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Partnerships and Collaborations: TRON has been actively forming partnerships with various companies and organizations to expand its ecosystem.
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DeFi Growth: The TRON network has seen significant growth in decentralized finance (DeFi) projects, attracting more developers and users.
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NFT Marketplace: TRON is also venturing into the non-fungible token (NFT) space, providing a platform for digital artists and collectors.
Why TRON Matters
TRON's focus on decentralizing the internet aligns with the broader movement towards giving individuals more control over their digital content. With its high transaction speed and low fees, TRON is positioning itself as a robust platform for dApps and DeFi projects.
