Understanding Crypto

In this episode of Understanding Crypto, Paul Abercrombie demystifies Zero Knowledge Rollups or ZK Rollups, a layer 2 scalability solution which promises to improve the speed and cost of transactions. Paul says the function of the ZK Rollups is similar to a solicitor who confirms the specifics of a purchase without letting both sides see all of the information. 

The Problem

Paul says that the two major challenges facing the crypto industry are scalability and inter-portability. Currently most large scale investments in the crypto market are based on addressing one or both of these challenges. In a typical crypto transaction all parties and nodes have to agree on the terms and conditions, known as proof of work. Additionally, gas fees make the process expensive: “You are paying to use the Ethereum network and out of gas fees, miners get paid their fee for carrying out that transaction,” Paul remarks. He believes that these operations are time consuming, expensive and ultimately reduce the system's efficiency. [Listen from 2:09 ]

The Solution

Zero Knowledge Rollups or ZK Rollups, one of the possible scalability solutions, helps to expedite the process by accepting only specific information from the contract, effectively reducing the time required for the transaction. ZK Rollups functions like a solicitor who confirms the specifics of a purchase without letting both sides see all of the information, Paul says. Currently, each node retains a copy of every transaction that occurs in the Ethereum blockchain. Paul comments, “That's exactly what scalability solutions are trying to solve with ZK Rollups, a way of storing that information off chain but providing enough information so both parties can agree.” The Merkle tree cryptographic structure, which is used to store data and enable knowledge transfer between participants, makes this possible. He suggests that listeners look for blockchains that are actively tackling  the issue of scalability through solutions like ZK Rollups when looking for new investments. [Listen from: 6:50]

Key Takeaways: 

• Blockchains may be able to store data off-chain using Zero Knowledge Roll Ups, a potential scalability solution.

Welcome to episode 33 of Understanding Crypto, the podcast where James Burtt and Paul Abercrombie demystify the world of Web 3.0 and cryptocurrency, as well as what it means for you and your business. In this episode James and Paul are talking with guest Spencer Lodge about what money is, the importance of crypto education and how society should move forward regarding crypto. 

Seek Out Your Learning 

It’s important to reach the people who don't understand crypto. Give them a way to understand and learn without confusing them. "The moment you confuse anybody, they're disengaged and you've lost them…and that's not healthy because this is the future of money," Spencer says. He stresses that inflation and excessive printing of money devalues it; this is a concept that the average person doesn't quite grasp. He adds that thinking your money is safe because it's in the bank is naïve, because your money's value is going down while it’s just sitting there.  [Listen from 4:54]

People have to start doing more professional research into money and its history, especially as money evolves. "We have to start embracing the future and the more we resist it, the more we alienate ourselves; and other people that embrace it will take more advantage of it and benefit further from it than you," Spencer remarks. [Listen from 10:13]

A Change in Activity 

Spencer talks about the importance of investing regularly, but not in large amounts especially in the beginning of a cryptocurrency. In the early stages of a currency, it’s volatile, he says. Investing gradually in increments is a smart move in order to not lose out on your investment.  

Women who are in the process of a divorce should get an attorney that understands digital assets to discover if their spouses are hiding finances from them. [Listen from 11:51]

Cryptocurrency was created as an alternative to the centralised money system, but the skepticism that followed has created a sentiment that it is not for everyone. Inflation is now hitting everyone in the pocket noticeably and so people have to start caring, and taking back control into their hands, James, Paul and Spencer agree. [Listen from 18:23]

Regulation in The Future

Regulation will impact the crypto world and while decentralisation purists balk at that, experts stress that this is how crypto will become mainstream. Spencer remarks that individuals who decide policy and laws surrounding crypto, should listen to the leaders in the crypto space. "When there's governance, then that can remove the banditos that are in [the crypto] space," he says. [Listen from 20:36]

Learning and Understanding

Spencer says you must have Gary V’s mindset to learning and understanding cryptocurrency: be committed to learning and developing the skills you need to excel in this field. You should also surround yourself with people who are already excelling in crypto and ask them questions - you’ll witness them brainstorming, and learn more. [Listen from 28:02]

You also have to understand that crypto is a very volatile space and you can't blindly throw your money in investments and expect your money to grow. Invest slowly by buying a bit every month, as that's the best strategy you can have with any volatile asset. [Listen from 38:10]

Key Takeaways

• Invest regularly but not carelessly.
• You have to be committed to learning and developing the skills you need to excel in crypto.
• Stop thinking about crypto as a hobby and start thinking about it as a business.

Resources

James Burtt on Twitter | LinkedIn | Instagram | Clubhouse

Paul Abercrombie on Website | Twitter | LinkedIn | Instagram 

This week on Understanding Crypto, Paul Abercromie and James Burtt talk about identifying legitimate NFT investment opportunities.They advise prospective buyers to take the NFT's utility into account as well as the digital community in which it was created. James and Paul observe that current NFT projects continue to adopt Web2's business MO under the guise of Web3 decentralization. They advise consumers to exercise caution when making future investments in NFT projects.

Factors Affecting NFT Legitimacy 

Although many NFT ventures may seem to have successful launches, Paul argues that the only way to determine a project's profitability is through secondary sales. However, due to the usefulness of the NFT, buyers may occasionally decide to keep their purchase. In these situations, since the smart contract's initial contract address is minted on the blockchain, validity can be verified. The first contract address would not be minted on the blockchain if a false NFT was launched. Consequently, they suggest that potential buyers should consider the NFT's utility as well as the community where it was created before making any purchases. [Listen from 2:36]

Usability

Usability, which is the primary benefit users gain from purchasing an NFT, should be the major factor for any digital purchase, according to Paul. He contrasts the marketing techniques used by Web 2 content producers with those in web3, who frequently make dubious promises in an effort to entice unsuspecting clients. “Now in web3 we've gone so far backward you can write a sentence about what you might give to somebody in the future and that's supposed to be attractive,” he comments. He cautions listeners that buzzwords like community, metaverse, and Discord servers are intentionally used to entice customers to purchase their NFTs. “There are people who actually believe if I put metaverse in my sentence on my page, it's like an automatic path to gold.” [Listen from 6:35]

Web3 Community

Both Paul and James note that under the pretense of web3 decentralization, recent NFT ventures have adopted Web2's business MO. Only the owners benefit in the conventional Web2 business model; however, the decentralized approach of web3 ensures that everyone benefits equally. “This is the equivalent of becoming a stakeholder. So they go from being a customer or client to a stakeholder with vested interest in the overall brand or business,” Paul remarks. They warn that you should not trust a business if it makes money off investments in exchange for access to future web3 spaces.”The balance is shifted to one side; only the seesaw is to the owner of that project, not to the community as a whole.” On the other hand, NFTs developed by businesses like Moonbirds have made sure that all members benefit and that as the company grows, so does the community. [Listen from: 9:44]

Roadmap

Investors should consider whether these NFTs are actually beneficial or have utility in the real world, James and Paul suggest. “If it was launched as a traditional business and you had to buy a membership card, who would buy it?” James encourages owners to question the importance or usability of the NFT before they create and launch them.They ask that prospective buyers inquire about the following issues. 

• Do you have confidence that project's leaders will be able to deliver the road map? 
• Is this road map practical?

“So I think you have to be very realistic when doing assessments and spending your hard earned cash on NFT projects. You've just got to be sure, that utility is there,” says Paul. [Listen from 17:08]

Key Takeaway

• Potential customers should explore the developers' digital community and consider the NFT's utility before making any purchases.

James Burtt on Twitter | LinkedIn | Instagram | Clubhouse

Paul Abercrombie on Website | Twitter | LinkedIn | Instagram 

On this episode of Understanding Crypto, James Burtt and Paul Abercrombie explore how the crypto space is currently impacted by Prime Minister Boris Johnson’s resignation. Paul expresses the market's concerns following the resignation of one of cryptocurrency's fiercest advocates, Rishi Sunak. Despite this uncertainty Paul is still hopeful that the newly elected leader of the Conservative party will be pro-crypto and spearhead the campaign for crypto-inclusive policies.

Crypto in Limbo 

Crypto enthusiasts are uncertain about the future of the market after a series of high-profile resignations including that of the Prime Minister Boris Johnson.The UK government has appointed a replacement for one of the first resignations, Chancellor of the Exchequer Rishi Sunak, a champion for the UK crypto industry. Through a series of workshops, Sunak’s FCA-led effort, Crypto Sprint, aimed to expedite drafting regulations geared at fostering innovation in the crypto industry. [Listen from 1:29]

Presently, the UK crypto industry is at a standstill until a new leader and cabinet of the Conservative Party are chosen. "That's worrying in this crypto space because there were so many initiatives that were getting traction," says Paul. The next leader may elect a chancellor not supportive of cryptocurrencies, as was the case with earlier cabinets formed under the same party. “So in the short term it is a worry and a concern for the UK crypto industry because now we're left in limbo as to what's going on in the long term” laments Paul. Yet there still remains the possibility that Rishi Sunak can be chosen as the future Prime Minister of the United Kingdom. If this occurs all cryptocurrency-related initiatives would be continued and accelerated, solidifying crypto as a mainstream currency. [Listen from: 5:22]

Crypto supporters are cautious and fearful that Rishi Sunak's pledge to turn the UK into a hub of cryptocurrency would not be realized. These supporters include many owners of crypto-related businesses who were depending on the FCA to push regulations. Notably, since the Prime Minister's resignation, this issue has not only affected cryptocurrencies but has also caused fiat market fluctuations. Paul hopes that the new cabinet would mirror the efforts of  some countries where politicians have continued to use their power to normalize cryptocurrencies within the mainstream market. “So you're seeing countries around the world making big steps and shifts in the political landscape to accommodate crypto and blockchain technology,” he remarks. Paul concludes that the true effects of the Prime minister’s resignation would be revealed in time. [Listen from:8:55 ]

Key Takeaway

• Cryptocurrency policy remains in limbo until a new leader of the Conservative Party is elected.

Resources

James Burtt on Twitter | LinkedIn | Instagram | Clubhouse

Paul Abercrombie on Website | Twitter | LinkedIn | Instagram 

In this episode of Understanding Crypto we are joined by Harry Horsfall, Co-Founder of specialist Web 3.0 agency Zebu. 

Harry is someone who has been involved in various crypto projects for the last 10 years - and as he shares in this episode, a decade in crypto is like a lifetime elsewhere! 

CHECK OUT THE LATEST WEB3 PROJECT FROM THE UNDERSTANDING CRYPTO TEAM VIA https://tinyurl.com/understandingcryptoproject

In this show, he shares how he started in traditional marketing before finding his love and passion for the world of the Defi economy and all the opportunities it presents. He talks about the launch of his agency - which stands at 50 people strong in just a year - and how it was a natural progression from the consultancy that he was already doing as crypto brands needed massive levels of support on taking theoretical ideas and converting them into real-world activations. 

Harry also talks about his excitement around the launch of their 2nd live in-person event, Zebu Live and exclusively announces Steven Bartlett as one of their top headline speakers. 

In the show you will learn: 

• How brands are seeing web 3.0
• Why sport and other IP rights owners have a generational opportunity right now
• How to deal with Bull and Bear markets 
• The genuine power of community
• Why Harry thinks London could - and should - become a world-leading hub for the world of crypto

Connect with Harry on TWITTER

Find more details about ZEBU LIVE

Understanding Crypto is the podcast created to help you work out what is happening in the world of Web 3.0 and the impact this digital revolution could make to your brand, business and life.

In this show, your hosts Paul Abercrombie and James Burtt will be discussing, distilling and massively simplifying subjects such as how blockchain works, what is metaverse real estate all about, what are you actually buying when you purchase an NFT, how do DOA's work, which direction is Bitcoin heading in, how to use a digital wallet, what steps you need to take to onramp from fiat currency into digital assets and lots, lots more.

Plus, via specific episodes of the podcast, Paul and James will actually pull back the iron curtain to share what on-chain projects they are involved with and document - in real time - the processes they grow and go through in order to make Web 3.0 as valuable for real-world realtime businesses and brands as possible.

CONNECT WITH PAUL 

CONNECT WITH JAMES 

CHECK OUT THE LATEST WEB3 PROJECT FROM THE UNDERSTANDING CRYPTO TEAM VIA https://tinyurl.com/understandingcryptoproject

In this episode of Understanding Crypto James Burtt and Paul Abercrombie predict the future of digital wallets. “A lot of futurists are saying it's going to become like your user name and password; that's what your wallet is going to become,” says James. They talk about the future development of NFTs and why digital wallets may become the primary method of digital identification. Paul thinks that the digital wallet has the potential to give people back control over their own data.

The Gateway 

The digital wallet is the entry point to the world of web3, Paul says. It’s similar to your email and password in Web 2.0. People aren’t responding to or being influenced by emails as much as before, so Web 2.0 marketers are looking for more effective ways to communicate with their customers. Furthermore, data silos continue to commercialise users’ information. Web3 technology has the potential to remedy these problems. A digital wallet gives you the power to determine what the 3rd party user is privy to, giving you back ownership of your data. 

The fact that blockchain technology powers digital wallets also means that the technology has a lot of potential. “NFTs can be used for proof of education, proof of jobs, for your CV, your medical records, your driving license - which will live on a blockchain and will connect to a digital wallet.” They also discuss the possibilities for the employment market to target pre-qualified candidates for job opportunities. James anticipates potential privacy violations, but he believes that they will be fixed in the near future. Digital wallets will become a personalized data silo that allows the owner to link and authorize third-party services. To ease the transition, Paul thinks that potential users should be educated about the possibilities. [Listen from 2:27]

Potential Applications 

Paul thinks that blockchain technology can transform the loyalty card model. Attached to an NFT, it can become a loyalty ID and stored in a digital wallet. If present inter-portability problems are resolved, the loyalty ID can become compatible with multiple companies across platforms. He also foresees the possibility of connecting data files to a digital wallet. This will allow doctors to view a client's medical history and decide how to treat them based on their most recent purchases. There’s also great potential in the education sector. “All it takes is for the education system to say, ‘From now on every single GCSE certificate that's issued on your child's education record is going to live on an NFT’,” says Paul. Digital wallets are the next logical step in technological progression and the change is happening swiftly. 

Data inter-portability remains the major roadblock to be resolved. Paul comments, “Blockchains have trouble speaking to each other; there's no inter-portability between a Polygon network and Solana. It's like two people speaking different languages.” James and Paul acknowledge that, despite this drawback, if these forecasts come to pass, it will be a powerful tool for business owners. “You can set the criteria to segregate your own audience based on behavior of people's wallets or based on different criteria.” They challenge listeners to try out the digital wallet because it is the way of the future. [Listen from 12:41]

Key Takeaways

• For web3 users, digital wallets may eventually replace other forms of identification.
• The adoption of digital wallets will give users the power to control their data.

Resources

James Burtt on Twitter | LinkedIn | Instagram | Clubhouse

Paul Abercrombie on Website | Twitter | LinkedIn | Instagram

In this episode of Understanding Crypto James Burtt and Paul Abercrombie discuss the misconceptions, possibilities and present utility of the metaverse. Paul defines it as a subsection of Web3 and shows its current use in gaming applications such as Roblox, Fortnite and Minecraft. The metaverse has limitless potential, but Paul thinks its major drawback is the lack of inter-portability between platforms. If this is fixed, he thinks, the technology might become mainstream. Both Paul and James admit that both Gen Z and Gen Alpha generations have become naturalised citizens of the metaverse leaving millennials behind the curve.  

The Metaverse

According to James, the word metaverse has been used interchangeably with Web3 and blockchain. He emphasises that the metaverse is neither Web3 nor Blockchain, but rather a part of it. James compares the earth to a blockchain and the metaverse to a collection of isolated continents. Despite popular belief, Paul says, the metaverse is not a new concept and is already a significant aspect of the lives of Gen Z and Gen Alpha.  “We’ve got two generations Gen Z and Gen Alpha that have grown up natively hanging out in the metaverse. They're talking to their friends, meeting their friends and having birthday parties within these games.” They freely purchase and spend digital currency on digital and real-world products. Paul laments that millennials are lagging behind and expects that it will eventually become mainstream commerce. As such they encourage business owners to be aware of their marketing strategies. While social media platforms are the marketing space for millennials, Gen Z and Gen Alpha use metaverse platforms like Roblox, Minecraft and Fortnite in the millions every day. [Listen from 2:03]

The Present Reality 

Metaverse users frequently spend their cryptocurrency to purchase digital goods like skins and other accessories. Paul and James believe that the metaverse will house various digital offices and other innovations within the next ten years. “If you look at the way that trends are going, those generations are already living every single day at some point in the metaverse.” In the Decentraland metaverse, for example, users have bought land, while real-world brands have launched products in virtual shopping malls that can be delivered in the real world. They both agree that the Metaverse has boundless potential, but Paul believes its one flaw is the lack of platform inter-portability. He believes that if this is corrected, the technology would become mainstream. James, on the other hand, believes that some millennials might be opposed to efforts to mainstream. Older generations had reservations about online shopping a decade ago, Paul responds; he doesn’t think that their objections will ultimately halt the metaverse’s progress. [Listen from: 10:41]

The Metaverse is Here

Paul discusses his concerns with buying digital property. “I'm not a firm believer of buying land in the metaverse, because I think it's too early and nobody knows what these platforms are.” He does, however, understand why  huge companies have decided to purchase commercial property in the metaverse in anticipation of rising consumption. Facebook chose to change its name and build a whole metaverse platform in an attempt to attract the younger consumer. This is a blatant sign of current trends, Paul argues. “This is here already,” he remarks, “it's not coming, it's here already. It's just our generation of people are not using it.” James and Paul admit that their early reservations about the metaverse put them behind the curve, but their own investigations have revealed the technology's promise. They intend to continue demystifying the Web3 industry as they continue to make use of blockchain technology, as seen in their Clubhouse creator coin and ongoing NFT project. [Listen from 23:49 ]

Key Takeaways 

• Metaverse technology is widely accessible, however millennials are being left behind.
• Gen Z and Gen Alpha are metaverse specialists and spend their time and money there on a daily basis.

Resources

James Burtt on Twitter | LinkedIn | Instagram | Clubhouse

Paul Abercrombie on Website | Twitter | LinkedIn | Instagram

In this episode of Understanding Crypto James Burtt and Paul Abercrombie discuss the effects of the crypto crash on crypto mining. Since many investors choose to exchange their riskier cryptocurrencies like Bitcoin and Ethereum for safer government bonds, the price of cryptocurrencies has fallen. Paul outlines the pros and cons of this. They both agree that despite the current market collapse, Blockchain technology, which is independent of hardware, has the capacity for innovation unmatched by any other technology.

Bitcoin Mining 

In light of the economic unrest, high risk claims are being liquidated in favor of more secure and low risk ones. Several governments across the world have decided to offer bonds; as a result, many riskier equities were sold off in favour of fixed-rate, safer government bonds. This liquidation is one of the factors contributing to the recent decline in cryptocurrency values, which, predictably, has had an impact on mining. 

Paul talks about Bitcoin mining strategies, which are controlled by multiple computers that raise the level of difficulty based on the number of computers on the network. “It's almost an algorithmic way of creating supply and demand,” James adds. Paul argues that Bitcoin mining has decreased significantly this year, but global economic unrest has preceded these declines. He believes that the ideal time for investors to become involved in mining is now.  “This is an asset that touched $65,000. It's now down but it's  $16,000, just over $20,000, again… so it is on sale,” says James. [Listen from 2:29]

Ethereum’s Dilemma 

Ethereum uses a consensus mechanism, specifically proof of work, or a GPU mining machine which is essentially a super computer. Coupled with low prices, Ethereum's intentions to move from its current proof-of-work system to a proof-of-stake mechanism, can be troublesome for the currency.  Paul describes the proof of stake system as “one computer with a piece of software on it which just checks that the transactions happen. It’s like a ledger, basically it reduces the amount of computing power needed to make it work.” Fewer computers result in a direct decrease in carbon emissions, Paul continues, which makes this switch more alluring to some investors. Other Ethereum-based side businesses have already made the switch and are now enjoying some level of popularity. While there are certain advantages, the expected market's glut might be disastrous for the current GPU miners causing the currency to fall further. “It's even harder to make it work when you're already set up in a different mechanism in a different way,” Paul points out. However, this still offers the Winners Club community a chance to engage in cryptocurrency farming. The installation of Ethereum evaluator nodes is part of their strategy to become Ethereum's referee evaluator. [Listen from 13:43]

Rapid Developments

Paul says, “There's lots of micro parts of the crypto space that's all having a little bit of an input into what's going on in this broader crypto market.” He and James talk about just how much Web3 is connected and how the crisis made this connectivity more apparent. Given the current state of the economy, Paul believes that long-term investors will continue to prosper because cryptocurrency will survive in the long run. James agrees but warns that investors must exercise caution because of the rapid changes within the cryptocurrency sector. “For people who want to invest for stability this ain't the game to be playing. But for those who want potentially big returns for sure big risks, it's a very exciting time,” he argues. Paul attributes this dynamism to blockchain technology, which is not dependent on any type of hardware, as opposed to other types of technology. Paul says, “Technology hardware has limited the progression of tech over the past 10 years…Whereas blockchain will move so much faster, so much more exponentially, because it would just simply require people to write code.” With  the development of appropriate codes on the blockchain, all of the challenges the market is experiencing can be fixed. Paul and James, who are both fascinated by this volatility, agree that it is the driving force behind much of  Web3’s development. [Listen from 21: 39]

Key Takeaways:

• The recent crypto crash also impacted cryptocurrency mining. 
• No other technology comes close to the transformative potential of blockchain technology.

Resources

James Burtt on Twitter | LinkedIn | Instagram | Clubhouse

Paul Abercrombie on Website | Twitter | LinkedIn | Instagram 

In this episode of Understanding Crypto we are going back to basics and breaking down some foundation points around blockchain, NFTs and setting up a crypto wallet. 

For this episode we have taken clips from previous shows to refresh your knowledge, go back over some of the essentials and look at the very starting core components of what you need to know in the weird and wonderful world of web 3.0! 

Listen back to the full episodes mentioned in today’s show 

EPISODE 1 - What Is Blockchain 

EPISODE 2 - What Is An NFT

EPISODE 3 - How To Set Up A Cryptocurrency Wallet 

Understanding Crypto is the podcast created to help you work out what is happening in the world of Web 3.0 and the impact this digital revolution could make to your brand, business and life.

CONNECT WITH PAUL 

CONNECT WITH JAMES

In this show, your hosts Paul Abercrombie and James Burtt will be discussing, distilling and massively simplifying subjects such as how blockchain works, what is metaverse real estate all about, what are you actually buying when you purchase an NFT, how do DOA's work, which direction is Bitcoin heading in, how to use a digital wallet, what steps you need to take to onramp from fiat currency into digital assets and lots, lots more.

Plus, via specific episodes of the podcast, Paul and James will actually pull back the iron curtain to share what on-chain projects they are involved with and document - in real time - the processes they grow and go through in order to make Web 3.0 as valuable for real-world real-time businesses and brands as possible.

In this episode of Understanding Crypto James Burtt and Paul Abercrombie discuss the most recent developments in the world of cryptocurrency. Celsius, a crypto-based financial institution, is on the verge of filing for bankruptcy, adding to the market's turbulence. Paul laments this development while contemplating on the technology's original purpose. He says, "This technology should only be used if it improves or provides a better option than what is now available." Celsius and several DeFi organisations, on the other hand, are supposed to provide a viable alternative to the centralised banking system, but are essentially banks camouflaged as cryptocurrency exchanges.

Centralisation in Disguise

The cryptocurrency market is incredibly volatile; this is aided by mass liquidation of digital assets by scared investors. “This is a full-on crypto crisis of epic proportions!” Paul laments. Though the decline began with Luna, it has continued and was recently exacerbated by the collapse of Celsius, a cryptocurrency-based financial institution that provides crypto-based loans. The current crash, according to Paul, is the result of two compounded losses experienced by the company with Stakehound, and a hacking issue with the Badger DAO. All accounts have since been frozen, a marker of centralised operation which goes against the tenets of Web3 decentralisation.  James states that institutions such as Celsius publicly promote decentralisation by utilising web3 tools to gain access to a different layer of transparency. "The way these organisations are potentially structured,” says Paul, “and the backers of those organisations, the VC backers are most likely financial institutions." Celsius, purportedly created to rebel against mainstream banking systems, approaches a huge centralised bank for assistance, which Paul finds is the ultimate irony. He also warns current investors who are hoping for a payout package that it may not be forthcoming. [Listen from 1:14]

The Crash of Celsius 

Though the DeFi institution's ideology and structure is admirable, James points out that real banks provide a level of security that DeFi institutions cannot surpass. Paul argues that, while Celsius did implement safety guidelines, it was their promise of high returns to investors that may have been the real cause of the current crisis. He wonders whether suitable systems were in place to produce the high yields projected. Due to a lack of restrictions in Web3, these institutions continue to deceive investors. While banks are obligated to present tangible documents in order to issue loans, the crypto market's absence of regulations makes this impossible. Presently, Celsius has frozen accounts without declaring bankruptcy and investors remain powerless without regulations protecting their interests. “If you can't access an asset, it's not an asset,” says James. [Listen from 11:08]

Web3 Loyalty

After the slump, only the loyalists have remained devoted to crypto, and their enthusiasm has not waned in the least. However, considering the potential of blockchain technology, Paul and James are mystified as to why these challenges persist. Paul emphasises that DeFi, blockchain and crypto are conceptually different, but they may overlap. He maintains that Celsius' problem is specific to DeFi institutions; this doesn’t negate the fact that blockchain technology is the true Web3 breakthrough. Paul compares blockchain technology to a web2 version of Windows 10, to highlight the intersection between blockchain technology and DeFi institutions. “[In a] decentralised network the computer can run in perpetuity …whereas in a centralised network somebody can stop the system from running,” he explains. Celsius accomplished this by disguising a centralised system as a decentralised one. "DeFi is just one solution that is created on the blockchain, so when people say that crypto is dead, this is wrong, because Defi is only one program that sits on the blockchain," he argues. James uses the developments around their creator coins as an example of how they, too, have been influenced by market instability. He claims that despite the present atmosphere, their coins have maintained their initial value due to the community's dedication. [Listen from: 21:14]

The Way Forward

Because their community has linked technologies, Paul believes they have been impacted by the crisis. He hopes that by implementing technologies in the future, they will be able to protect their community against future repercussions. Paul believes that token gating, which offers members voting access and utility, would be beneficial to their community. They've been using Rally to issue these creator coins for their business, and he adds that if this bridge is burned down, it will have a direct impact on their community. He does admit, though, that risks are unavoidable. In spite of the perceived stagnancy of the market, there are new developments within the space. [Listen from: 28:51]

Key Takeaways

• Regulations are required to protect the rights of investors in DeFi organisations.
• Some DeFi organisations are actually centralised banks masquerading as DeFi.

Resources

James Burtt on Twitter | LinkedIn | Instagram | Clubhouse

Paul Abercrombie on Website | Twitter | LinkedIn | Instagram