1. BITBILIHome
  2. Article

ConsenSys calls for targeted regulation of blockchain applications to safeguard DeFi users

• 193 views

TL;DR Breakdown

  • ConsenSys, a prominent Ethereum development studio, recommends prioritizing the regulation of applications over blockchain protocols in the UK.
  • They propose a nuanced and targeted regulatory approach for public-facing blockchain applications.
  • ConsenSys also points out the challenge of maintaining data integrity outside the blockchain.

ConsenSys, a leading Ethereum-focused development studio, has submitted a recommendation to the UK authorities, urging them to prioritize the regulation of applications over blockchain protocols. The suggestion comes as part of a response to an ongoing UK investigation into the expanding realm of decentralized finance (DeFi) and related cryptocurrency activities.

The firm suggested its stance in a letter released on Tuesday that articulated a shift towards a more nuanced and targeted regulation method for public-facing blockchain applications. This would mitigate potential risks without impeding the core infrastructure of the blockchain. ConsenSys believes such an approach mirrors the existing regulatory framework for the second generation of the internet, commonly called Web2.

In advocating for a focus on specific activities and services instead of imposing broad limitations on the entire blockchain infrastructure, ConsenSys stated: “The actual products or services posing potential risks should be the primary focus of regulation, not the open-source code, which is inherently neutral in its purpose.”

The Brooklyn-based firm stressed the significance of scrutinizing the level of control certain individuals or groups exert over DeFi applications. They caution against situations where parties can manipulate smart contracts or have access to private keys, asserting that these are areas ripe for potential risk. Consequently, regulations must tackle these issues while fostering innovation and encouraging a steady shift toward decentralization.

In addition, ConsenSys drew attention to the challenge of maintaining data integrity outside the blockchain. They note that while blockchain data can be audited and verified, the same level of trustworthiness is not extended to real-world data or data introduced via oracles. As such, any regulatory framework should consider these concerns to ensure a comprehensive approach to blockchain regulation.

The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:ConsenSys calls for targeted regulation of blockchain applications to safeguard DeFi users

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月4日 02:55
Next 2023年6月4日 05:12

Related articles

  • Mysterious burning of $4.5 million worth of Ether baffles crypto community

    TL;DR Breakdown An unknown individual burned 2,500 Ether (ETH), worth $4.5 million, removing the coins from circulation, puzzling the crypto community. On-chain analysis of the sender’s holdings has led to various speculations on the motive, including potential protest or an attempt to influence other token values. The sender’s identity and intentions remain mysterious, creating an intriguing crypto mystery and highlighting the unpredictable nature of the crypto space. Description The crypto community was recently stunned by a mysterious act involving burning 2,500 Ether (ETH), equivalent to $4.5 million. On July 26, an unknown individual using the Ethereum Name Service (ENS) name “nd4.eth” sent a substantial amount of Ether to a burn address, effectively destroying the coins and removing them from circulation.  The event has … Read more The crypto community was recently stunned by a mysterious act involving burning 2,500 Ether (ETH), equivalent to $4.5 million. On July 26, an unknown individual using the Ethereum Name Service (ENS) name “nd4.eth” sent a substantial amount of Ether to a burn address, effectively destroying the coins and removing them from circulation.  The event…

    Article 2023年8月8日

  • PancakeSwap price analysis: CAKE remains blocked below $1.5 resistance

    TL;DR Breakdown . CAKE price descended 3.5 percent over the past 24 hours . Bearish control seen as price trends horizontally . Support moved down to $1 mark PancakeSwap price analysis continues to show a bearish trend in place, as price struggles to beat the previous support zone at $1.5, which is now the resistance. CAKE has been trading horizontally for most of this week, with price dropping another 3.5 percent over the past 24 hours to move as low as $1.342. As bearish control looms large, CAKE trading volume has recently been on the up consisting majorly of seller action. PancakeSwap is the 94th ranked cryptocurrency in the crypto market with a market capitalisation of $1,014,955,687. The larger cryptocurrency market continued to retain a bearish outlook, with Bitcoin declining further towards the $25,000 mark with a 3 percent decline, and Ethereum dropping 5 percent to $1,600. Among leading Altcoins, Ripple suffered a massive 8 percent loss to move down to $0.47, while Dogecoin lost 2 percent in moving as low as $0.06. Cardano receded by 4 percent to $0.26,…

    Article 2023年6月17日

  • LBRY plans to pick up the fight against SEC again

    TL;DR Breakdown LBRY has filed a notice of appeal against a federal judge’s ruling in July that favored the U.S. Securities and Exchange Commission (SEC) final judgment that was entered on July 11, 2023. The SEC had originally sought a much larger penalty of $22 million but reduced it after recognizing that the now-defunct firm couldn’t afford such an amount. Description LBRY, the blockchain-based file-sharing and payment network, appears to be reversing its earlier decision to wind down its operations. In a significant development, LBRY has filed a notice of appeal against a federal judge’s ruling in July that favored the U.S. Securities and Exchange Commission (SEC). On September 7, LBRY submitted a notice of appeal … Read more LBRY, the blockchain-based file-sharing and payment network, appears to be reversing its earlier decision to wind down its operations. In a significant development, LBRY has filed a notice of appeal against a federal judge’s ruling in July that favored the U.S. Securities and Exchange Commission (SEC). On September 7, LBRY submitted a notice of appeal to the United States Court of…

    Article 2023年9月8日

  • Bitfinex partners with Vakıfbank to offer zero-cost deposits in Turkish Lira

    TL;DR Breakdown Bitfinex partners with Turkey’s Vakıfbank to offer zero-cost deposits in Turkish Lira. Additional incentives include no-fee withdrawals up to 2 million TRY and reduced trading fees. The collaboration is part of Bitfinex’s expansion in Turkey and is available via their web platform and app. Description Bitfinex, a leading crypto trading platform, has announced a partnership with Vakıfbank, Turkey’s second-largest bank, to offer zero-cost deposits for customers in Turkey. This integration allows Turkish customers to deposit Turkish Lira (TRY) directly into their Bitfinex accounts without any fees, marking a significant step in Bitfinex’s expansion in the Turkish market. A strategic partnership … Read more Bitfinex, a leading crypto trading platform, has announced a partnership with Vakıfbank, Turkey’s second-largest bank, to offer zero-cost deposits for customers in Turkey. This integration allows Turkish customers to deposit Turkish Lira (TRY) directly into their Bitfinex accounts without any fees, marking a significant step in Bitfinex’s expansion in the Turkish market. A strategic partnership with Turkey’s second-largest bank According to the blog post, The collaboration with Vakıfbank enables Bitfinex to provide seamless and cost-effective…

    Article 2023年8月25日

  • Robinhood expands crypto wallet to include Bitcoin, Dogecoin, and Ethereum swaps

    TL;DR Breakdown Robinhood Markets has expanded its crypto wallet to include support for Bitcoin, Dogecoin, and Ethereum swaps, extending its services beyond the Ethereum ecosystem. The expansion comes after a decline in Robinhood’s crypto-related revenue and aims to boost user engagement and diversify asset coverage in response to customer demand. Description Robinhood Markets, the commission-free brokerage, has broadened the capabilities of its crypto wallet by adding support for Bitcoin (BTC), Dogecoin (DOGE), and Ethereum swaps. This move extends Robinhood’s reach beyond the Ethereum ecosystem, responding to user demand for more diverse asset coverage across various blockchain networks. Robinhood’s user-centric expansion Initially launched for Apple devices in … Read more Robinhood Markets, the commission-free brokerage, has broadened the capabilities of its crypto wallet by adding support for Bitcoin (BTC), Dogecoin (DOGE), and Ethereum swaps. This move extends Robinhood’s reach beyond the Ethereum ecosystem, responding to user demand for more diverse asset coverage across various blockchain networks. Robinhood’s user-centric expansion Initially launched for Apple devices in March, Robinhood’s wallet was confined to supporting the Polygon and Ethereum networks, along with a select…

    Article 2023年8月31日
TOP