To open this year, as usual we review some of the most important events and events in the sector blockchain / cryptocurrency in progress, which to keep track of in 2023.
Surely 2022 will be remembered as one of the most bitter years for the cryptocurrency ecosystem in recent times, since unfortunate events for the sector have taken place throughout this period, mainly derived from the effects of the ongoing crypto winter.
Given that some of these events were especially significant, and even especially important or momentous, what will happen to them in 2023 should be closely monitored, the year in which some of these may possibly give a lot to talk about.
Ecosystem blockchain / Crypto by 2023
Here are some important events within the ecosystem blockchain /cripto that took place during 2022. This is the first part of a couple of works that we will publish in DailyBitcoin during these days:
1. The case of FTX and Sam Bankman-Fried
Perhaps by now there are very few who do not know about FTX, exchange founded and directed by Sam Bankman-Fried (SBF), which collapsed and was forced to declare bankruptcy before the US authorities after becoming insolvent, this for using funds from its users to finance aggressive expansion plans throughout of 2022.
The fall of FTX It was one of the most shocking events for the crypto market in recent times, especially taking into account that it was already seriously affected by the ongoing crypto winter. In addition to the collapse of the exchange’s parent company and its allied company, Alameda Research, Both SBF and other top executives are currently facing criminal charges for crimes of embezzlement, for which they are answering to the US authorities at this very moment.
Perhaps the highlight of the case right now is that all eyes are on the legal process against Bankman-Fried, who days after the collapse of FTX claimed not to have legal responsibility after what happened, but against which the US Department of Justice (DOJ).the Securities and Exchange Commission (SEC) and other regulators filed criminal charges. After his extradition to United States territory and agreeing to assume his process in freedom for a fine set at USD $250 million, the defendant will have his next hearing on January 3, 2023 before the manhattan court In New York.
The eyes of the sector are on the case mainly for three reasons:
- What will be the fate of Sam Bankman-Fried?
- What will eventually happen to FTX Group and all associated companies?
- What repercussions will this have at an economic and regulatory level?
2.EDF and the fight against inflation
The crypto market is no stranger to the difficult macroeconomic scenario that is shaking the global economy, and the eyes of the world seem to be on the measures that the US takes to deal with inflationary levels, on which the resolutions that they will adopt mainly depend. other countries to deal with their own scenarios.
In this sense, the measures adopted by the US Federal Reserve (FED) have generated diverse effects on a wide variety of local and international markets. In mid-March 2022, the agency began to increase bank interest rates, and currently, after the recent increase decreed in mid-December, this stands at a global 4.5% at the time of publication.
In this last increase the fed The margin of increase slowed down, which went from 0.75% to 0.5%, but far from seeing this as something good, the president of the organization, Jerome Powell, anticipated that this implies reconsidering how far they will rise and by how much time the high levels of interest rates will be maintained. Analysts project that 2023 could be the year in which the US economy enters a recession, and the fear is already reflected in both the performance of the stock markets and the cryptocurrency sector.
Beyond the US both the European Central Bank like the Bank of England have chosen to replicate the measures taken by the FED. Therefore, the course that the aforementioned entities decide to take will be very important for the course that the price of the main cryptocurrencies will follow.
3. Bill Mica in Europe
The bill called ‘Markets in Crypto Assets‘ and known by its acronym as Mica, It is the legislative package contemplated by the European Union to begin to effectively regulate the cryptocurrency space. Bliss initiative was originally proposed in 2020 as part of the plan for Digital Finance of the European Commission, being submitted throughout this year to debates before the Parliament, the Council and the European Commission.
After a series of reviews and the modification of particularly controversial aspects regarding cryptomining / issuance of new tokens / existence of a registry for service providers with digital currencies, the bill Mica it will officially be put to a vote sometime in February 2023.
If approved, this would be the first legislative package that would establish clear first rules applied to the cryptocurrency industry in European territory, unifying important criteria and closing gaps for the free interpretation of certain principles applicable according to each country in the region.
An important detail is that after the events that occurred with the exchange FTX, European officials have highlighted the need to vote on and implement the bill Mica to avoid similar events in the future. It remains to be seen if this first legal framework will be sufficient, there will be reforms or even a second version that addresses aspects that have been left out, such as the decentralized finance ecosystem. (DeFi).
4.Ethereum will receive its next big update
One of the most important technological milestones that took place in September 2022 was The Mergeone of the most anticipated updates for the blockchain from ethereum, which allowed the exchange of the consensus algorithm Proof-of-Work (PoW) by Proof-of-Stake (PoS)bringing with it the latter a 99% reduction in the electricity consumption of the network, as well as the opening of the staking system for the validators who put their funds as collateral to help in the processing of blocks.
Now what ethereum operates under a new consensus algorithm, expectations are set on the next step that the network will follow, since in 2023 the next update known under the name Shanghai.
What can we expect for Shanghai? Although this will establish the bases for future improvements in terms of scalability and segmentation of operations (Sharding), Perhaps the most important improvement that this new update brings is the possibility that those who staked with ETH to validate blocks, they can now receive their funds back, mainly benefiting those who first supported this new mode of operation for the network.
As to Shanghai, it is estimated that if all goes according to plan, this will take place sometime in March 2023. But as if that were not enough, the main development team plans to implement a second update by the end of the same year so that things progress at a good pace.
There are certainly many other events in the past that will also have great relevance for the future of the digital currency ecosystem and technology. blockchain, some of which will be addressed in a future edition.
Article by Angel Di Matteo / DailyBitcoin
Picture of Unsplash
CAVEAT: This is an informative article. DiarioBitcoin is a communication medium, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. They may not be appropriate for retail investors, as the entire amount invested could be lost. Check the laws of your country before investing.