Say hello to the Post-Quantum Cryptography Alliance

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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• Say hello to the Post-Quantum Cryptography Alliance.

• White Hat Hackers have earned over $640,000 in bug bounties from crypto companies.

• Bitcoin ETFs hit $10B milestone just one month after approval.

• New York Attorney General is now seeking $3 Billion in DCG lawsuit.

• Brazilian crypto firm Ramp rolls out ID-free onboarding to grow users.

• Dictionomics: Decline of the Token.

Global Biscuits

Say hello to the Post-Quantum Cryptography Alliance.
The Linux Foundation has announced the formation of the Post-Quantum Cryptography Alliance (PQCA), comprising tech giants like Amazon Web Services, Google, IBM, and NVIDIA, along with cybersecurity firms and research institutions. With the looming threat of quantum computing, the alliance aims to address security vulnerabilities that could emerge as quantum technology infiltrates various sectors. Quantum computers, with their exponentially faster processing capabilities, could potentially compromise current encryption standards. The PQCA seeks to accelerate the transition to "post-quantum" cryptography, developing open-source software implementations like the ML-KEM algorithm to bolster encryption methods against future quantum attacks. This initiative gains significance in light of the continued growth of cryptocurrencies like Bitcoin, which rely heavily on cryptographic security. While Bitcoin's encryption remains resilient to quantum attacks in the near term, the alliance underscores the need for industry collaboration to prepare for potential cryptographic upheaval in the future. The PQCA builds upon years of research into quantum-resistant cryptography, including contributions from the University of Waterloo, which hosts the alliance's first project, Open Quantum Safe.

White Hat Hackers have earned over $640,000 in bug bounties from crypto companies.
In the crypto space, code not only dictates rules but also translates into earnings for white hat hackers. With the emergence of severe bugs in crypto infrastructure, hackers face a choice: exploit them (black hat) or report them (white hat). A growing number of companies, about 60, have launched bug bounty programs on platforms like HackerOne, paying over $640,000 to hackers who reported vulnerabilities. Companies like MetaMask and Hedera Hashgraph have distributed significant sums to hackers who contributed to securing their platforms. Coinbase leads in the number of bounties paid, with one bounty offering up to $1 million for causing "serious business disruption." Transparency and user safety are emphasized, with companies like Brave Software regularly disclosing bug details. The bug bounty landscape complements traditional audits, offering ongoing rewards for identified vulnerabilities and fostering community engagement to enhance platform security and protect Web3 users.

Bitcoin ETFs hit $10B milestone just one month after approval.
Nine spot Bitcoin exchange-traded funds (ETFs) have collectively reached $10 billion in assets under management (AUM) just one month after their approval. Led by BlackRock's IBIT fund with $4 billion in Bitcoin, the ETFs saw net flows of $2.7 billion on Jan. 9. Fidelity’s FBTC follows with over $3.4 billion in BTC under management, while ARK 21Shares’ fund holds about $1 billion worth of Bitcoin. Grayscale’s GBTC experienced $6.3 billion in outflows over the past month, with $51.8 million recorded on Feb. 9. Analysts expect Bitcoin ETF flows to increase as trading firms conduct due diligence. Bitcoin's price consolidation above key technical support in January, along with its role as a risk-off asset replacing gold, suggests further growth. The U.S. SEC approved Bitcoin ETF applications from various firms, marking a significant milestone in the crypto investment landscape.

Tastes of the regions

New York Attorney General is now seeking $3 Billion in DCG lawsuit.
The New York Attorney General has updated its lawsuit against Digital Currency Group (DCG), seeking $3 billion in restitution for defrauded investors, up from the original $1 billion. The lawsuit alleges that DCG, along with Genesis Global Capital and Gemini Trust, misled investors and attempted to conceal over a billion dollars in losses. The amended complaint cites an expanded scope of the fraud, with more investors reporting similar harm, totaling over 230,000 individuals. DCG dismissed the updated complaint as baseless, affirming its commitment to lawful and ethical business practices. The lawsuit highlights the need for stronger cryptocurrency regulations to protect investors, emphasizing the complexities of the scheme that affected various stakeholders within DCG's ecosystem, including Genesis and Gemini.

Brazilian crypto firm Ramp rolls out ID-free onboarding to grow users.
Ramp, a crypto payments firm, is simplifying its onboarding process by introducing ID-free registration, starting in Brazil. Users will only need to provide a tax identification number and a selfie to sign up, eliminating the need for submitting a government ID photo. This initiative aims to lower barriers to entry and drive the mass adoption of digital currencies. The move follows Ramp's integration with Brazil's national digital payment platform, Pix, announced in September, which facilitates seamless customer onboarding in the country. While Ramp is not directly collaborating with the Brazilian government, it partners with a third-party for necessary KYC checks. This update is expected to benefit users across platforms Ramp integrates with, such as MetaMask, TrustWallet, BitPay, and Sorare. The company's Series B funding in 2022 amounted to $70 million, reflecting its growing valuation and expansion efforts.

Dictionomics:   Decline of the Token

A defi token is a type of cryptocurrency that is used to power decentralized finance applications. Decentralized finance, or defi, is a term that refers to the use of blockchain technology and smart contracts to create financial services that are transparent, permissionless, and interoperable. Defi tokens can have various functions, such as governance, utility, or reward. Some examples of defi tokens are UNI, AAVE, and COMP.

To decline a defi token is to reject or refuse to accept it as a form of payment or exchange. This may happen for various reasons, such as security, regulation, or preference. Declining a defi token may have consequences, such as losing an opportunity, facing a penalty, or missing out on a potential profit. For example, if a merchant declines to accept a defi token from a customer, they may lose the sale or damage their reputation. If a regulator declines to approve a defi token for legal use, they may hinder innovation or create a black market. If an investor declines to buy or sell a defi token at the right time, they may miss the chance to earn a high return or avoid a loss.

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