Daily Crypto, Finance, and Tech News Summary – July 25, 2023

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Welcome, and thank you for being part of the MyZucoins community! Dive into some important crypto, finance, and tech news to stay ahead.

Many people installing new servers as puzzle pieces for the cloud

Google’s Cloud Services Getting Deeper Into The Fast-Evolving Web3 Segment

Google Cloud, a popular servers-for-hire service, is setting its sights on the Web3 frontier, aiming to make its computing services the go-to choice for industry leaders and programmers. This comes in the wake of launching a program to aid startups within the Web3 sector. The tech giant has revealed plans to continue creating services akin to its Blockchain Node Engine. Google Cloud’s mission now includes helping its clientele become influential entities in the Web3 ecosystem.

The company is also offering on-chain datasets, such as Ethereum on BigQuery, Google’s serverless data warehouse. This move allows startups to focus on their unique value propositions without worrying about rebuilding foundational capabilities. It is now actively working with financial service providers and gaming companies to explore how Web3 innovations can streamline their operations and unlock new business models and revenue streams.

Google Cloud is also eyeing artificial intelligence (AI), a technology that some crypto companies have high hopes for. The company anticipates that AI can play a key role in solving business and technology challenges, especially when applied to the Web3 domain.

Google Cloud’s Web3 startup program, launched in April, enables startups to build on Google’s serverless platform for free while also offering perks like $200,000 in Google Cloud credits and technical support. Through this program, several organizations were set to provide $1 million worth of grants to boost Web3 startup growth. This program is just one of the ways Google Cloud is demonstrating its warming stance towards crypto and Web3, signaling the tech giant’s growing interest in the space. Read more here.

Web3’s Gaining More Tech Industry Acceptance

Zooming out, the increasing amount of exposure the crypto industry is getting from established corporations is great to see. While these companies are mostly focused on traditional blockchains, it encourages next-generation systems within the crypto industry, too.

Taking cues from Google Cloud’s strategy, Zucoins and its Splitchain network have been focused on offering a system and tools that reduce the need for startups to rebuild foundational capabilities. By utilising the Splitchain network’s unique caching system that eliminates competitive mining, startups can focus on their individual value propositions, thereby accelerating their journey in the Web3 industry.

“Worldcoin” Has Major Issues and Will Take Years to Work, Vitalik Buterin, Ethereum Co-Founder Warns

Worldcoin, a newly launched cryptocurrency project by OpenAI CEO Sam Altman (of recent ChatGPT fame), has launched its main network (“mainnet”), creating a buzz in the crypto sphere. Worldcoin has been in development and beta phases for many years and recently completed a migration to become a token on top of an Ethereum layer 2 network called Optimism.

However, Ethereum co-founder, Vitalik Buterin, has raised concerns over Worldcoin’s unique user authentication system, “Proof-of-Personhood” (PoP). This system authenticates users through an iris scan using a device called an “Orb”, aiming to offer tailored services and weed out bots.

Buterin fears this process could inadvertently expose more information than intended. For example, if another person scans a World ID holder’s iris, they could check it against the Worldcoin database to verify their participation in the system.

More than this, Buterin questions other privacy implications of iris scanning, raising fears that the system could inadvertently collect sensitive data such as a person’s sex, ethnicity, and certain health conditions. He also worries about accessibility. With Worldcoin planning to deploy 1,500 Orbs in 35 cities worldwide, it claims to expect a surge in weekly registrations from 40,000 to 200,000. Buterin, however, suggests that the limited number of Orbs could restrict access to the service.

The Orb, being a physical hardware device, also raises eyebrows. Buterin points out the lack of means to confirm that the Orb was correctly constructed without deliberate security holes known as “backdoors”. He also suggests that the Worldcoin Foundation might be capable of inserting a backdoor into the system, enabling it to create unlimited fake human identities.

There are also security concerns related to the potential hacking of users’ phones and the coercion of users into giving out their iris scans. Buterin admits there’s no perfect solution, citing three paradigms of approaches, each with its strengths and weaknesses. Despite his concerns, Buterin acknowledges that specialized hardware systems, like Worldcoin, could do a decent job of protecting privacy. Yet, he cautions that these systems might introduce greater centralization, thus possibly leading to longer-term control and censorship concerns.

Buterin also highlights security issues surrounding the use of AI-generated photographs or 3D prints of fake people, and the potential for World IDs to be sold or lost. He concludes that while solutions may be found, they’re likely to take years to develop and may require collaboration with other “proof-of-personhood” projects. Read more here and here.

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Peter & Rob