Blockchain & Web3 Weekly Bytes Edition #28

Nasdaq’s Bitcoin Options, DeFi Insurance Evolution, India’s CBDC Push

August 31, 2024

Hello Fellow Enthusiast,

Welcome to Edition #28 of Blockchain & Web3 Weekly Bytes! This week's highlights include:

Tech Spotlight: DeFi Insurance – How decentralized finance is transforming the insurance industry with real-world applications and evolving risk management.
Week's Highlights: Nasdaq seeks SEC approval for Bitcoin Index Options, India leads in CBDC adoption, and other key developments in the blockchain space.
Affiliate Spotlight: 101 Blockchains Certified Web3 Professional – Enhance your Web3 expertise with this comprehensive certification program.
Chart of the Week: Bitcoin's Cost-Basis Comparison – Key levels to monitor based on buying patterns of various investor groups.

Stay tuned for these insights and more in this week’s edition!

🧐 Weekly Trivia

In the context of blockchain, what is a “Merkle tree”?

A) A type of consensus algorithm
B) A data structure used for efficient verification of data
C) A method for encrypting transactions
D) A framework for smart contract development

*Find the answer at the bottom of this newsletter.

🌟 Tech Spotlight – DeFi Insurance

Decentralized Finance (DeFi) has opened up a world of financial opportunities, but with those opportunities come risks. As more individuals and institutions engage with DeFi platforms, the need for robust insurance solutions becomes increasingly clear. DeFi insurance is stepping in to offer a safety net, providing coverage against various risks in the digital finance ecosystem.

How DeFi Insurance Works

DeFi insurance operates on smart contracts, ensuring that claims are processed transparently and automatically. When a predefined event occurs, such as a hack or a smart contract failure, the insurance payout is triggered without the need for intermediaries. This process makes DeFi insurance faster and often more reliable than traditional insurance models.

Real-World Utility

One notable example of DeFi insurance in action is Nexus Mutual, a decentralized platform that offers coverage against smart contract failures. In 2022, Nexus Mutual processed claims for users affected by the $600 million Ronin Network hack. This real-time response highlighted the critical role DeFi insurance can play in protecting users from significant financial losses.

Why DeFi Insurance Matters

Trust in DeFi: With the rise of DeFi platforms, trust remains a significant concern. Insurance solutions help build confidence among users, ensuring they can engage with DeFi products knowing they have some protection against unforeseen events.
Decentralized Coverage: Unlike traditional insurance, DeFi insurance is community-driven. Coverage terms, claim assessments, and payouts are all governed by the community, ensuring transparency and fairness.
Accessibility: DeFi insurance is accessible to anyone with an internet connection, making it easier for users around the world to protect their digital assets.

Looking Ahead

As DeFi continues to grow, so will the demand for reliable insurance options. With innovations in smart contract technology and community governance, DeFi insurance is set to become a cornerstone of the decentralized economy, ensuring that users can protect their assets while exploring new financial frontiers.

📰 This Week’s Blockchain and Web3 Highlights

Nasdaq Aims to List Bitcoin Index Options: Nasdaq is seeking approval from the SEC to list and trade Bitcoin index options, using the CME CF Bitcoin Real-Time Index as its benchmark.

India Positioned as a Leading Market for CBDC Adoption: According to JP Morgan's Naveen Mallela, India is poised to become one of the largest markets for Central Bank Digital Currencies (CBDCs), potentially revolutionizing its financial landscape.

Bitcoin ATM Numbers Skyrocket in Australia: Australia has seen a significant rise in Bitcoin ATMs, growing from just 73 in September 2022 to over 1,160 as of this week, marking a rapid adoption of cryptocurrency infrastructure.

Hong Kong's Project Ensemble Explores CBDC Tokenization: Hong Kong is advancing its CBDC initiatives with Project Ensemble, a sandbox exploring tokenization in traditional banking, featuring participants like the Bank of China, HSBC, and Microsoft.

CME Group Set to Launch Bitcoin Friday Futures: CME Group has announced the launch of Bitcoin Friday Futures on September 30, offering new avenues for traders to engage with the cryptocurrency market.

Crypto.com Partners with Standard Chartered for Global Fiat Expansion: Crypto.com is teaming up with Standard Chartered to enhance global fiat services, expanding access to USD, EUR, and AED in 90 countries, managed from its hub in Dubai.

Bitwise Expands Bitcoin ETF Holdings with $120M Acquisition: Bitwise has acquired the Osprey Bitcoin Trust, adding $120 million to its assets under management and further solidifying its position in the Bitcoin ETF market.

🔗 Affiliate Spotlight: 101 Blockchains Certified Web3 Professional

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Ready to advance your Web3 expertise? Enroll in the 101 Blockchains Certified Web3 Professional course today through this affiliate link and start your journey toward becoming a blockchain expert.

😂 A Little Blockchain Humor Break 🤣

Source: CoinTelegraph

📊 Chart of the Week: BTC Cost-Basis Comparison

This week's chart focuses on Bitcoin's realized price across key investor segments. Here's what you need to know:

New Whales (those holding large amounts of BTC for less than 155 days) have a cost basis of around $63,450.
Binance Users show a cost-basis of approximately $55,540.
Bitcoin Miners have a cost basis of nearly $44,400.
Long-Term Holders (holding for more than 155 days) show a more conservative cost-basis at $25,000.

These figures highlight the different support levels that could come into play based on the purchasing patterns of these key Bitcoin investor groups. Understanding these levels can give insights into market movements and potential areas of strong support in the event of price fluctuations.

Source: Ali

Thanks for diving into this week's updates! We explored how DeFi is pushing boundaries with innovative insurance solutions, tracked Bitcoin's latest cost-basis data across key investor groups, and looked at the global trends shaping blockchain's future.

Trivia Answer: B) A data structure used for efficient verification of data

Merkle trees are fundamental to blockchain technology, providing a secure and efficient way to verify data integrity, ensuring that every transaction on the blockchain can be traced and verified.

As always, your thoughts and feedback are invaluable to me. Stay informed, stay connected, and I'll catch you in the next edition of Blockchain & Web3 Weekly Bytes.

Warm 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.

Blockchain and Web3 Insights