A Decent Publication™

Presented by CryptoLink.Tech & GaussGang.com

Volume 1 | Edition 26 | December 14, 2023

Opening Thoughts

Welcome back and happy Thursday, Chain Reaction readers!

Picture this: a hot cup of coffee in hand on a crisp December morning, the kind that gets the blood pumping and the brain working. As you savor that first sip, let’s unravel the stories that have been brewing in the worlds of finance and cryptocurrency this week.

In the cryptocurrency world, we're riding the waves of bullish sentiment and excitement. Bitcoin, the Holy Grail of crypto, experienced a bit of turbulence, dipping toward $40,000 and marking its lowest point in a week​​. But, in a dazzling twist of events, Solana's native token (SOL) soared by 17%, reaching heights unseen since May 2022​​. This surge in SOL, alongside a general uplift in the crypto market, smells of optimism and a bit of a dynamic shift in the digital currency landscape​​.

Meanwhile, in the broader financial world, stocks are marching to a triumphant beat. Wall Street has pushed stocks higher, riding on a six-week winning streak bolstered by a positive jobs report. This upward trend hints at the Federal Reserve's successful navigation towards a "soft landing" for the economy​​.

But it's not all rainbows and butterflies. The web3 world faced a setback with the shutdown of play-to-earn and nonfungible tokens (NFT) features in a blockchain chess game, Immortal Game, due to rampant cheating​​. We also saw the removal of a blockchain-based game from the Epic Games store over an ESRB rating. This development serves as a reminder of the challenges in balancing innovation with integrity and technicalities.

So, what does this all mean for us?

We're looking at a week where resilience and innovation at the forefront. From the highs and lows of Bitcoin to the bullish spirit in the stock market, and the lessons learned in the Web3 space, there's a sense of anticipation lurking in the digital realm.

Let's get into it, shall we?

World Of Web3

Navigating the immense amount of nonsense in this space, bringing you only the good stuff.

SumUp’s Oasis: Quenching the Fintech Funding Drought

Is the drought over?

In a tech landscape parched for funding, London-based fintech startup SumUp has emerged as a remarkable exception. SumUp has impressively secured €285 million (~$307 million) in growth funding. This bold move, led by investors Sixth Street Growth and Bain Capital Tech Opportunities, signals a significant shift in the fintech sector.

SumUp, a company known for its payment and related services to over 4 million small businesses globally, plans to use this capital to expand its ‘global footprint’ and develop new services. SumUp's achievement stands out as a pivotal moment, offering a bit of hope to other tech startups struggling to find support in these challenging financial times.

Whether this trickles into web3 start-ups or not is TBD…

Read the full article here for more insights into SumUp's groundbreaking funding round and its impact on the fintech landscape.

Apple's Record High and the Fed's Rate Cut Signal

Apple Inc. is soaring to new heights, with its stock reaching an unprecedented high.

This surge is attributed to the Federal Reserve's recent indication of potential rate cuts in 2024, fostering a climate of lower borrowing costs. On Wednesday, Apple's shares climbed 1.7% to a record close of $197.96 per share, surpassing its previous high close of $196.45 set in July.

This upward trajectory in Apple's stock value coincided with a larger rally in the U.S. stock market. The Federal Reserve's decision to hold interest rates steady has been a catalyst, with a significant majority of Fed officials (17 of 19) forecasting a decrease in the policy rate by the end of 2024.

Apple's performance has notably contributed to the Dow Jones Industrial Average's 1.4% climb to its first record high close since January 2022.

Read more about Apple’s stock surge and the FOMC news here, at Yahoo Finance.

Inflation Debate: Jim Grant vs. FOMC's Outlook

In a sharp contrast to the Federal Open Market Committee's (FOMC) recent stance on interest rates, Wall Street guru Jim Grant presents a divergent view.

Known for his expertise and the long-running "Grant's Interest Rate Observer," Grant offers a sobering view on inflation, suggesting it's more permanent than transitory. This implies that the purchasing power we've lost may never come back.

Grant cautions that the lost purchasing power due to inflation might not be recoverable, reflecting a deep-rooted economic change. He predicts that Federal Reserve Chair Jerome Powell, wary of previous misjudgments on inflation trends, will approach rate cuts with heightened caution.

This implies that any potential cuts would be more gradual and delayed compared to market expectations.

Read the full story here​​​​

Immortal Game's Play-to-Earn Strategy: A Cautionary Tale in Blockchain Gaming

The recent decision by Immortal Game to discontinue its play-to-earn (P2E) and NFT features due to cheating issues highlights a growing concern in the blockchain gaming world.

This move also brings to light the larger challenges facing Web3 gaming environments. As monetary incentives become intertwined with gameplay, the risk of cheating and unfair practices increases, potentially ruining the gaming experience for honest and traditional players.

Adding another layer to the challenges faced by blockchain gaming is the recent removal of Gods Unchained, an NFT card game, from the Epic Games Store. The game received an "Adults Only" rating from the Entertainment Software Rating Board (ESRB) due to its play-to-earn elements, leading to its removal from the store.

However, the future of blockchain gaming is not solely dependent on overcoming these challenges. A recent survey revealed that most game developers in the Web3 space believe that mainstream game studio adoption of blockchain technology is crucial for the industry's development​​.

Are the challenges created by blockchain gaming too large for a small studio to tackle?

Mainstream gaming companies have been hesitant to adopt Web3 technologies, with six out of ten Web3 games being excluded from mainstream distribution platforms.

The key to longevity for Web3 games, as noted by industry experts, will be focusing more on player experience rather than just blockchain elements, suggesting a need for a massive shift in how these games are developed and marketed​​​​.

Read the full story on Immortal Game's strategic shift on CoinTelegraph.

Explore the full story of Gods Unchained's removal from Epic Games Store on Blockonomi.

Tech Trends

For that cousin at holiday dinners.

Worldcoin's World ID 2.0: Pioneering Zero-Knowledge Proofs in Blockchain Technology

Worldcoin has recently announced the launch of World ID 2.0, an innovative identity verification system that leverages blockchain technology to provide zero-knowledge proofs. This system is integrated with major platforms like Shopify, Mercado Libre, Reddit, Telegram, and even the gaming world with Minecraft. The significance of World ID lies in its ability to prove one's uniqueness and humanity on the internet while maintaining complete privacy​​.

The Mechanics of World ID 2.0

1. Digital Passport: World ID functions as a digital passport, enabling users to demonstrate their unique human identity online without revealing personal information. Users can verify their identity using an Orb, ensuring they are recognized as real and distinct individuals​​.

2. Diverse Applications: The World ID 2.0 upgrade introduces "Apps," allowing users to verify online accounts and apply a verification status across various platforms. This development expands the system's usability, catering to different security needs from casual to high-security applications​​.

3. Enhanced Security with Zero-Knowledge Proofs: A pivotal feature of World ID is its use of zero-knowledge proofs, ensuring that identity verification is done without exposing any personal data. The latest upgrade has made these proofs faster and more efficient, thereby enhancing the security and privacy of users​​​​.

4. Levels of Authentication: World ID 2.0 introduces different levels of authentication - Device, Orb, and Orb+ (including face authentication). This range allows for a tailored approach to identity verification, analogous to varying real-world scenarios like a librarian's casual ID check versus stringent airport security​​.

5. Focus on Privacy and Ownership: Worldcoin has designed World ID with a strong emphasis on privacy, asserting that it is a fundamental human right. The system's open-source nature and the direct control it gives to users over their private key and verification bundle underscore this commitment​​​​.

6. Recovery and Custody Options: In case of loss or compromise, users can reset their World ID at an Orb. The introduction of Personal Custody and the option to opt-out of Data Custody offer additional layers of security and control to the users​​​​​​.

The use of zero-knowledge proofs in World ID offers a glimpse into a future where verifying one's identity or age does not require revealing sensitive information. This technology has the potential to transform various sectors, from secure health information sharing to age verification in bars, without compromising personal data.

Amid concerns about AI and bot manipulation, tools like World ID could become crucial in maintaining the integrity of human interactions online. The system's ability to adapt to different levels of security requirements makes it a versatile tool for a wide range of applications, potentially leading to broader adoption.

Explore more about World ID 2.0's integration with major platforms and its unique features at CoinTelegraph and learn in-depth about the technology at Worldcoin's official announcement.

Google's Gemini AI Surpasses ChatGPT in Benchmark Tests

Google has introduced Gemini AI, a groundbreaking series of generative AI models, marking another leap in the AI industry.

Google CEO Sundar Pichai described this as one of their most ambitious science and engineering endeavors. Gemini AI stands out for its multimodal capabilities, meaning it can process and generate various types of content like text, images, and voice, unlike OpenAI's ChatGPT and DALL-E 3, which are slightly more limited.

The Innovation of Gemini AI

1. Multimodal from the Start: Gemini AI is designed to be multimodal from its inception, unlike traditional AIs that combine separate models. This approach enables Gemini to seamlessly process various inputs more effectively than existing models​​.

2. Versatile Models: Google has developed three versions of Gemini AI:

   • Ultra: The most powerful, excelling in complex tasks. It's noteworthy for outperforming human experts on the MMLU, a benchmark covering knowledge across 57 subjects.

   • Nano: A smaller, efficient model capable of running on smartphones.

   • Pro: Balances capabilities and size, integrated into Google's ChatGPT-like Bard, slated for an Ultra upgrade in 2024​​.

Comparative Performance

Gemini AI has outperformed OpenAI's GPT-4 in 30 of 32 benchmark tests, although the margin of superiority was often small, suggesting Google is ahead but not by a substantial margin.

Read more about Google’s advancement in AI technology here, on Forbes.

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Gauss Gazette

Your favorite brand will build on Gauss one day.

Gauss Gazette - Liquidity Boost Program Announcement Summary

Program Objective

The Liquidity Boost Program aims to grow Gauss's liquidity significantly. The targeted goal is over $50,000 in stablecoins paired with more than 500,000 GANG tokens. Importantly, users will maintain custody of the liquidity they provide, which includes those who participated in the farming option via the UYG form previously.

Process Overview

The program is currently in the development and testing phase, with the following steps outlined:

1. Step 1: Users Send GUD

   • Users will send GUD to a designated smart contract.

2. Step 2: Users Receive LP

   • 90% of the user's GUD will be paired with GANG. The users will then receive half of the LP (Liquidity Provider) tokens resulting from this pairing. The goal is to automate this step.

3. Step 3: Users Stake Their LP

   • Users will send their LP tokens to another smart contract to stake them.

4. Step 4: Users Unstake Their LP

   • Users have the flexibility to unstake their LP at any point and can swap it back out. Greater rewards and benefits are available for participants who stay throughout the full period of the program.

Rewards & Benefits

The program offers several attractive rewards and benefits:

• Increased LP Rewards: LP rewards on Noble Swap are typically around 0.45%, nearly double the average of most swaps at about 0.25%. For this program, LP rewards will be about 0.90%, which is twice the normal rate.

• Additional Rewards Pool: Gauss is creating a pool of 1 million GANG for additional rewards. This will be used to compensate for any potential impermanent loss after the program's one-year period.

• End-of-Program Bonus: Participants will receive 20% of the amount they staked as GANG, based on its value at the end of the program.

This Liquidity Boost Program represents a significant step by Gauss in enhancing liquidity and offering substantial incentives to its users. The focus on user custody of provided liquidity and the potential for high rewards makes it an attractive opportunity for Gauss platform users.

If you are interested in learning more about the Gaus LBP, check out the links below and join the conversation in their Discord.

As Gary always says, be excellent!

Innovagination

Get your mind out of the gutter — It’s the intersection of innovation and imagination.

El Salvador's Bold Move with Bitcoin Freedom Visa

El Salvador, under President Nayib Bukele's vision, is making a significant leap in blockchain technology adoption with its new "Bitcoin Freedom Visa" program. This initiative is part of El Salvador's ambitious efforts to become a global "Bitcoin Nation."

Key Highlights of the Bitcoin Freedom Visa Program

• Citizenship-by-Investment: The program offers a path to citizenship for individuals willing to invest $1 million in Bitcoin (BTC) or Tether (USDT).

• Exclusive and High-Value: Targeting 1,000 high-net-worth individuals, this program is unique in its scale and investment threshold, especially compared to similar programs in the Caribbean and other regions.

• Pro-Bitcoin Policies: El Salvador, with Bukele's backing, has been a trailblazer in adopting Bitcoin-friendly policies, including recognizing Bitcoin as legal tender and providing tax incentives for Bitcoin investors and tech/crypto firms.

This move by El Salvador is a striking example of leveraging blockchain technology for national progress and could influence other nations exploring similar technologies. It reflects a broader vision of using tech innovations to reshape economic and social frameworks.

Discover more about this groundbreaking initiative and its implications for blockchain technology and national policy in El Salvador at Cointelegraph.

CryptoLink Connect

These guys make “cross-chain” as easy as opening Chain Reaction.

New Technology on the Way

We don’t have an official announcement out just yet, but for all the lurking nerds Atlas released the Messagev3 testnet package!

This is our new technology that will allow our message bridge to facilitate transfers between 33 blockchain networks! If you are a developer that would like to check it out, the link is below.

Final Byte: Wally’s Wisdom

What a whirlwind of a week in the tech and crypto space!

It's incredible how much ground we've covered today, and it's all thanks to your curiosity and engagement.

First off, Bitcoin and Solana's price movements continue to keep us on our toes. Watching these cryptos navigate the market's waves is like a high-stakes drama.

Switching gears to the gaming world, we saw the challenges of blockchain games firsthand, with some being pulled from stores and others shutting down due to cheating issues. It's a vivid reminder of how this space is still evolving and facing its unique hurdles.

Then there's Google's Gemini AI outshining ChatGPT in most test categories – a testament to the relentless pace of innovation in AI. And let's not forget Worldcoin integrating Zero-Knowledge Proofs into everyday platforms, opening up a world of possibilities for privacy and security in our daily lives.

Through all this, one thing remains clear: the tech and blockchain world is never dull. It's a rollercoaster ride of breakthroughs, setbacks, and constant evolution.

And you know what?

We're all in this together, learning, adapting, and growing with each new development.

A huge thank you for being part of this journey. Without your interest and support, 'Chain Reaction' wouldn't be the vibrant community it is. Here's to staying curious, open-minded, and excited about what the future holds in this crazy, ever-changing world of technology and blockchain!

Until next time, keep exploring and stay curious!

Best,

Wally
Marketing/Branding — CryptoLink.Tech
Co-Founder — Decent Media

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If you are catching today’s edition on the web and you are not already subscribed, do us a favor and click the button below! Subscribing is free and it is the #1 way to support the Chain Reaction newsletter. In the future, we will be exploring the possibility of subscriber and referral rewards.