Category: Blockchain

CBN Must Collaborate with Stakeholders to Govern Blockchain Technology

Senator Ihenyen, the president of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), has urged the Central Bank of Nigeria (CBN) and other important players in the nation’s financial sector to chart a course for the future regulation of the blockchain and cryptocurrency industries.
Ihenyen stated that a point of convergence is required due to the exceptional growth of the blockchain business in Nigeria during the opening peer-to-peer conference hosted by SiBAN over the weekend at the Civic Event Centre in Lagos.

“What we represent is a self-regulatory body in Nigeria’s blockchain industry. With the P2P conference, we want to have a platform where innovators, as well as policymakers and other stakeholders within and outside the industry, can have conversations around blockchain adoption, policy and regulation.
“We will need a re-engagement of stakeholders, lawmakers, and policymakers so that we can have a proper regulatory framework for Blockchain adoption in the country. In this way, we will be able to converge and not have this current divergence. In this way, the CBN will be able to understand that decentralised applications or finance or cryptocurrencies are financial technologies, its fintech. It is not about banning or restricting. It is about understanding the pros and cons and working with all industry stakeholders, including banks and law enforcement agencies to ensure that we have transparency in the space,” he said.

Jude Ozinegbe, the P2P Conference Planning Committee chairman, stated that the massive attendance by financial sector stakeholders, particularly those who participate in the alternative finance segment, is strong evidence of the immense power SiBAN wields.
He also expressed gratitude to the businesses that had contributed significantly to the conference’s success through sponsorship and partnership.
He mentioned several of these organizations, including Alpha Ltd., ABCC, BEI, thinkcrypto, Blockchain Vibes, Everest, Crypto Hills, Cryptopreacher Blockchain Academy, Sinso Technologies, Market Advance, Near Finance Protocol, Bitget, Empowered CryptoHub, Smart Investors Hub, Super Woman, GIDA, LUPPON, Finsmart, CryptoMart, and MoEX Consult.
The conference’s theme, “CeFi, DeFi & TradFi: is there a need for Convergence in the Current Divergence? “, was addressed by specialists from several sectors of the alternative finance ecosystem. The first keynote address was given by Olutoyin Oloniteru, founder and chairman of the Crypto Economy Institute of Africa (CEIAfrica), on the subject of “Emergence of CeFi, DeFi, & TradFi: Securing the Future in the Current Divergence.”
Speaking on the topic of “The Emergence of CeFi, DeFi, and TradFi: a Concordium Perspective,” Lars Seier Christensen, Chairman of Concordium and a pioneer in FX and derivative trading as well as the co-founder and former co-CEO of Saxo Bank, gave the audience a global perspective on the discussion’s theme.
More speakers also spoke at the conference’s panel sessions, which explored the conference’s theme in greater detail. ‘Navigating the Opportunities and Risks in CeFi and DeFi, and Exploring Possible Opportunities in TradFi,’ is the first chapter.
AbikureTega, Team Lead, Kumon Wallet; Chuta Chimezie, Founder, BNUG & Vice-President, BiCCoN; Eric Anan, Founder/CEO, Global DCA; and Rume Ophi, Founder, Cryptopreacher Blockchain Academy were in their element during the lively discussion, imparting expertise on the topic. Chioma Onyekelu, CCI, A&D Forensics, acted as the moderator for the discussion.
SiBAN is a self-regulatory organization (SRO), a 2018 association of participants in the blockchain and cryptocurrency industries.

What You Should Know About SiBAN

Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), is an association of blockchain and cryptocurrency industry participants founded in 2018 to act as a self-regulatory body in the direction of a friendlier, safer, and more significant blockchain and cryptocurrency industry in Nigeria.
By promoting blockchain & crypto education, encouraging the adoption of model self-regulatory policies in line with international best practices, and working with relevant bodies to ensure that innovation is not stifled by regulation, consumer protection and investor safety are safeguarded, they work with their registered members to promote a free market for blockchain & crypto players.
SiBAN is an association with a decentralized structure based on the right to free speech and association guaranteed by Section 40 of the Nigerian Constitution. Consensus is reached by all registered nodes (members) within the SiBAN community.
SiBAN was honoured as “The Best Blockchain Association in Africa” during the Nigeria Fintech Week 2021. We continue to support an innovative and inclusive regulatory framework for cryptocurrencies and blockchain in Nigeria.

Benefits of Being A SiBAN Member

As a member of SiBAN, you will receive a variety of advantages, such as access to community resources on blockchain technology, the chance to support the development and adoption of blockchain technology in Nigeria by participating in the association’s activities, free or discounted access to conferences and workshops hosted by the SiBAN community, exclusive access to SiBAN’s registered-member-only platform, and access to SiBAN’s network of experts, virtual asset traders, blockchain developers, and other professionals.
Other advantages include the chance to converse with regulators and policymakers; the chance to speak as a keynote, guest, or panel session speaker at blockchain conferences and workshops organised by the SiBAN community; the chance to display your blockchain or cryptocurrency products or services to the audience or boost your brand or corporate image at conferences or programmes organised by the SiBAN community for free or at a discounted rate; the chance to take part in meetups, training, and other activities; and finally, the chance to exhibit your products or services at SiBAN conferences or programs.

SiBAN Contact

You can contact them via: contact@siban.org.ng
They are located @Buffalo Building, 2 Allen Avenue, Ikeja, Lagos. Gabriel Akinmade Plaza, Lagos.
Their phone number is +2348171552905

The financial sector of Nigeria, including the CBN should make ventures in blockchain technology easier. This would make things easier for the citizens and boost the economy. Any interested in blockchain technology need to be acquainted with SIBAN. A partnership with SiBAN will be profitable.

August 24, 2022
Cybercrime Ravages Cryptocurrencies

While cryptocurrencies gained popularity over the years, hackers have specifically targeted it to exploit weaknesses in crypto-transactions. Chainalysis, a company that analyzes blockchains, has published research that shows that about $2 billion worth of cryptocurrency was stolen in 13 separate hacks on cross-chain bridges.

The company said that most of the $2 billion had been stolen this year, with 69 percent of the cash stolen in 2022 so far coming from attacks on bridges. It was also said that the theft could make people less likely to trust blockchain technology.

Cryptocurrency allows users to take back control of their finances by letting them act as their own bank while using third-party wallet providers. However, cybercriminals have taken advantage of this third party over the last few years.

The research said, “As more value flows through cross-chain bridges, they become more attractive targets for hackers.” Even more troubling is that bridges are now a top target for North Korean-linked hackers, who — according to our estimates — have stolen approximately $1 billion worth of cryptocurrency so far this year, entirely from bridges and other DeFi protocols.

For perspective, South Korea’s government-run statistical agency estimates the country earned $89m from official exports in 2020. The good news is that these services can take steps to protect themselves. And in the event of a hack, they can leverage the transparency of blockchain technology to investigate the flow of funds and ideally prevent attackers from cashing out their ill-gotten gains.

Bridge Hacking Could Lead to a Loss

Cross-chain bridges were made because it was hard for different blockchains to work together, a problem that needed to be fixed. In the white paper, a “cross-chain bridge” describes how a user moves digital assets from one blockchain to another. It was said that these bridges are attractive targets because they often have a central location where the funds that back the assets that are “bridged” on the receiving blockchain are kept.

This year has devastated crypto investors as hacks and scams struck record highs. Because hackers have found a very effective way to contact people, specifically through bridges.

Blockchain bridges are becoming increasingly popular as a means of transaction for cryptocurrency users. These bridges flimsily connect networks to allow for quick token swaps. But by using them, people who like cryptocurrencies avoid a centralized exchange and use a system that is insecure.

In an interview, Tom Robinson, co-founder and chief scientist at blockchain analytics firm Elliptic, said, “Blockchain bridges have become the low-hanging fruit for cyber-criminals, with billions of dollars’ worth of crypto assets locked within them.” “These bridges have been breached by hackers in various ways, suggesting that their level of security has not kept pace with the value of assets they hold.

Considering how recent this problem is, the frequency with which bridges are being exploited is terrifying.

Toncoin Cryptocurrency Payments are Now Available on Telegram

How The Bridge Works in Crytocurrency Transactions

A piece of software called a bridge enables users to send tokens from one blockchain network and receive them on another. The distributed ledger technologies that support different cryptocurrencies are known as blockchains.

When an investor wants to move tokens from one blockchain to another, for example, by sending ether from Ethereum to the Solana network, they must first deposit the tokens into a smart contract. A smart contract is a piece of code stored on a blockchain, making it possible for agreements to be carried out automatically without human intervention.

After that, the cryptocurrency is “minted” on a new blockchain in the form of a wrapped token, representing a claim on the original ether coins. This claim may then be used to purchase further ether coins. After that, the token will be able to be traded on the new network. Investors who use Ethereum, which is renowned for unexpected jumps in transaction fees and higher wait times when the network is congested.

Read Also: The Explosive Growth of Blockchain Funding and Cryptocurrency in Africa

The Bridge Hack

CNBC explained that “the vulnerability of bridges can be traced in part to sloppy engineering.”

It also says that the attack on Harmony’s Horizon bridge was possible because the minimum number of validators needed to approve a transaction was low. Hackers only had to get into two of the five accounts for them to be able to take funds out of the compromised accounts.

Ronin was involved in a circumstance that was very similar. Hackers only needed to convince five of the nine validators on the network to give up their private keys to access the encrypted data that was locked up in the system.

In the case of Nomad, the bridge made it much easier for hackers to change the system. Attackers could put any amount of money into the system and then take money out, even if there weren’t enough assets in the bridge to cover the amount of money they put in. They didn’t need to know how to code, and others copied them. This led to the eighth-largest crypto heist in the industry’s history, according to Elliptic.

August 22, 2022
The Explosive Growth of Blockchain Funding and Cryptocurrency in Africa

Blockchain venture funding and cryptocurrency adoption have both seen explosive growth in Africa. Africa is emerging as one of the world’s fastest-growing cryptocurrency markets, driven by strong funding activity, favourable market conditions, and booming trading volumes, according to a new report by Swiss blockchain-focused investment firm CV VC.

Blockchain Cryptocurrency allows the African population to hold assets that aren’t affected by rising inflation and depreciating domestic currencies. Cryptocurrencies are also quicker, cheaper and easier to use than conventional methods. That’s because the technology facilitates peer-to-peer transactions rather than relying on intermediaries.

Noteworthy fundraising reports are being recorded: MARA, a Kenyan startup building a pan-African crypto exchange, raised US$23 million; Jambo, a Congolese Web3 startup, closed a US$30 million Series A funding round; and Afriex, a Nigerian money transfer startup, raised US$10 million in a Series A. Added to Q1 2022’s figure, these deals bring the year’s total funding for the sector so far to US$154 million, surpassing 2021’s blockchain funding total of US$127 million.

Blockchain development on fertile ground

Africa’s dynamic blockchain funding landscape is reflective of investors’ confidence in the prospect of the technology on the continent.

Africa is the second most populous continent in the world and has one of the youngest populations globally. Additionally, a report says that many Africans cannot rely on centralised and regulated infrastructure systems, which are often riddled with inefficiencies and red tape.

With 370 million people still unbanked across the region, cryptocurrencies and blockchain have the potential to allow Africans in cash-based and informal economies to access alternative infrastructures to obtain credit, access payment capabilities, save and invest, and more.

Developments on the regulatory front have also been another driver of the growth of blockchain in Africa.

In Nigeria, new regulations for digital assets were introduced in May, offering more clarity on trading in cryptocurrencies. The move followed the launch of the eNaira, a retail central bank digital currency (CBDC), in October 2021.

In South Africa, formal guidelines on crypto are expected to be introduced in 2023, and experiments on CBDCs are being carried out.

Last year, the Virtual Asset and Initial Token Offering Services Act 2021 was passed into law in the island nation of Mauritius. This act provides a comprehensive legislative framework to regulate the emerging industry of cryptocurrencies.

A pioneer in the field of cryptocurrency regulation, Mauritius initiated the process of regulating the industry in 2020 when it issued guidance for security token offerings. In addition, it introduced a regulatory regime that new security token trading systems needed to comply with to be eligible for a Financial Services Commission (FSC) license. Mauritius is considered a frontrunner in cryptocurrency regulation.

The research indicates that venture capital (VC) funding in the blockchain industry is experiencing a meteoric rise in 2018, with blockchain startups raising a total of $91 million in just the first quarter of 2022 alone.

This number represents a year-on-year increase of 1,668% from the previous year’s first quarter.

Read: Binance Partners with Utiva to Host Blockchain Education Bootcamp For African Women

Cryptocurrency usage is on the rise

Over the past couple of years, there has been a meteoric rise in the number of people in Africa using cryptocurrency. According to the blockchain data platform Chainalysis, the value of transactions conducted in cryptocurrencies on the African continent’s market increased by more than 1,200% between the years 2020 and 2021, placing it as the third-fastest growing crypto economy in the world.
The company believes multiple trends are responsible for the rise in the use of cryptocurrencies throughout the region.

The publication of CV VC’s African Blockchain 2021 took place at the same time as the company’s launch of its African Blockchain Early Stage Fund and the announcement of its forthcoming accelerator programme focusing on blockchain technology.

Evidence suggests that Africans are increasingly using cryptocurrencies for remittances. Africans are turning to digital currencies to avoid capital control measures and traditional money transfer services that are more expensive.

Read: Crypto is Essential for Financial Inclusion Says CAR President

The use of cryptocurrencies as a hedge against inflation and geopolitical risks is another potential use case that Chainalysis identifies as a use for cryptocurrencies. For example, data from Kenya and Nigeria show that trading volumes on peer-to-peer cryptocurrency platforms increase when there is a decline in the value of the naira and the shilling in terms of US dollars.

Understanding blockchain technology

A system of recording information in a way that makes it difficult or impossible to change, hack or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

Blockchain is a record-keeping technology that is designed to make it impossible to hack the system or forge the data stored on it, thereby making it secure and immutable. It is a type of distributed ledger technology (DLT), a digital system for recording transactions and related data in multiple places at the same time.

Blockchain aims to allow digital information to be recorded and distributed but not edited. In this way, a blockchain is a foundation for immutable ledgers or records of transactions that cannot be altered, deleted, or destroyed.

Blockchain is the technology that enables the existence of cryptocurrency (among other things). Bitcoin is the name of the best-known cryptocurrency for which blockchain technology was invented.

August 14, 2022
Hashgreed Secures $1 Million, For Expansion Across Africa

Hashgreed, an NFT Marketplace, multipurpose NFT and super dapp platform under the Krosscoin Ecosystem has secured over $1 million in funding to help scale operations across Africa.
The platform is programmed to assist both individuals and businesses having an experience with web3 solutions for creative, commerce and asset tokenization.
Hashgreed has created a platform called Hashdealz, a web3-powered e-commerce platform, where users can create, sell and buy NFTs, own Fractional NFTs, hire and pay freelances in cryptocurrencies and stablecoins, send more to other countries via stablecoins, amongst others.
The platform has also allowed Nigerians to access NFTs via its stablecoin called $HASH. They also plan to release stable coins for other African countries.
The CEO and founder of Vinekross Technology, the parent company of Krosscoin Ecosystem, Efosa Ighodaro, has stated that the funding received will enable Vinekross to strive to get registered with the Nigeria Securities and Exchange Commission (SEC) as it prepares for an ICO event which is scheduled to come up later this month. In a statement, he said:
“Vinekross is determined to be the largest native blockchain ecosystem and community in Africa, through very safe and sound tokenomics and governance where all outstanding tokens are governed by the KSS holders. We would like to be a company trading on the Nigerian Stock Exchange in a couple of years”.

NFT and its benefits to the African economy

NFT, which means Non-fungible tokens, is one recent phenomenon that took the world by storm when an NFT sale was made worth $69 million in march 2021. This huge sale made people put on their reading glasses and began intense research on anything NFTs.
NFTs have become a new type of digital asset, and it has been the major drive which has increased the value of NFTs. Here are the benefits of NFTs:

Read: NFT Marketplace For Creatives, Ayoken Bags $1.4M To Help Users Grow Their Revenue

They foster market efficiency

This is the most important benefit of NFTs as it makes the market more efficient by converting physical assets to digital ones, which can streamline processes, eliminate the need for middlemen or intermediaries, enhance the supply chains, and increase security.
In the art world, arts and sculptors can access the audience directly, eliminating the cost of intermediaries and cumbersome transactions. The digitization of artwork also improves the authentication process, further streamlining transactions and reducing transaction costs.
The use of NFTs has gone beyond the marketplace as they can be an efficient way to manage and control sensitive data and keep records of individuals and organizations.
The use of physical passports at airports means that they need to be produced at the point of entry and departure, but by converting them to NFTs, we could greatly reduce the stress involved in travelling processes and identification of individuals, which could cut the cost involved and save time.

They can be used to fractionise ownership of Physical assets:

When in its physical form, it is very easy to fractionize items such as jewellery, artwork and real estate, but when provided in its digitized version, it is easier to divide among multiple owners without complaint.
The digitisation of physical products can greatly widen the market for those assets, leading to liquidity and higher prices. For individuals, it can increase how financial portfolios are constructed, allowing for greater diversification and more precise position sizing.

The technology used in NFTs is one of the safest ever

NFTs are created through Blockchain technology, which is used to store information in a way that makes hacking, altering and deleting impossible. In simple words, a blockchain is a ledger of transactions which is duplicated and distributed across an entire network of participants.
Once an NFT is created, it is stored on the blockchain while possessing distinct records of originality and chain-of ownership, which prevents them from falling into the wrong hands or being stolen. Once the data of an NFT is added to the blockchain, it can not be changed or deleted, which means that the scarcity and originality of each NFT are kept, and this brings about trust, which is lacking in most marketplaces.

They can provide diversification benefits to an investment portfolio

Since NFTs are different from traditional investments such as bonds and stocks, they provide us with distinctive qualities and offer benefits that the world is still exploring.
As we all know, the NFT risk profile differentiates from other traditional assets. Adding NFTs to an investment portfolio could improve efficiency and attain a better balance of risk and return.

NFT and its challenges to the African economy

All advantages must surely have some disadvantages, and NFTs are no better as there are also some risks associated with owning an NFTs:

They are illiquid and volatile

Due to the immature state of NFTs, people who know and trade NFTs are few, which means that when you own an NFTs-it is very hard to sell, especially during distress periods such as the COVID-19 pandemic. This can also imply that their prices can be highly volatile, which means that the prices are not stable.

They do not generate income

Since NFTs are not like traditional assets such as stocks and bonds, they don’t offer any income potential, so their returns are based on price appreciation and are unreliable.
NFTs have proven to be a future investment which would be a major trend, and blockchain technology has sown that it is the safest online ledger to store information.

NFTs have advantages and disadvantages, but the advantages have superseded their counterparts and are on their way to beating traditional investments like stocks and bonds on popularity.

August 8, 2022