GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- Cardano Hosts Argentina’s First Legally Enforceable Smart Contract

- Argentina Surpasses Brazil with $91 Billion in Crypto Inflows

- Uniswap Labs Launches Unichain to Address DeFi's Challenges

- OKX Gains Dubai Licence to Serve Retail Crypto Clients

- Ripple Launches Enhanced Custody Solutions for Crypto Businesses

- Bitget Tightens Token Listing Rules to Prevent Scams

Cardano Hosts Argentina's First Legally Enforceable Smart Contract Following Crypto Legalization for Commercial Agreements 

Cardano has become the platform for Argentina's first legally enforceable smart contract, a direct result of the country's decision to legalize cryptocurrencies for commercial contracts in December 2023. This contract, a loan agreement for 10,000 ADA tokens worth $3,380, was signed by Cardano ambassadors Mauro Andreoli and Lucas Macchia, with repayment terms set for four months at a 10% interest rate. Under Argentina’s legal framework, the court now holds jurisdiction over this contract, making it the first time an Argentine court can enforce payment in ADA through a smart contract.

Andreoli celebrated the occasion, stating that this milestone could set the stage for broader legal recognition of smart contracts in Argentina, especially for commercial transactions like property rentals and purchase agreements. This landmark event comes ahead of Cardano founder Charles Hoskinson’s meeting with Argentine President Javier Milei at the Cardano Summit 2024 in Buenos Aires. The move is part of a broader trend, as other global courts, including in the U.S. and the UK, have begun incorporating blockchain technology for legal enforcement.

Argentina Tops $91 Billion in Crypto Inflows, Surpassing Brazil in Latin America Amid Rising Inflation and Stablecoin Adoption

Argentina has become the leading country in Latin America for crypto inflows, surpassing Brazil with an estimated $91.1 billion in digital currency between July 2023 and June 2024. According to Chainalysis, Latin America received nearly $415 billion in crypto inflows during this period, making it the second-fastest-growing crypto region globally, with a 42.5% year-over-year increase. Stablecoins, particularly those pegged to the U.S. dollar, are playing a critical role in Argentina, helping citizens hedge against inflation, which reached around 143% in mid-2023.

The majority of crypto transactions in Argentina, especially retail-sized ones, involve stablecoins as people seek to preserve their savings amid the devaluation of the Argentine peso. Stablecoins now account for about 62% of Argentina's total crypto transaction volume. Meanwhile, Brazil is seeing increased institutional crypto activity, driven by major financial players and regulatory developments such as Bitcoin and Ethereum ETFs. Stablecoins also play a crucial role in Brazil, particularly for cross-border payments, where they represent 70% of flows between local exchanges and international platforms.

Uniswap Labs Launches Unichain, a Fast, Decentralized Layer 2 Solution to Solve DeFi’s Key Challenges and Advance Ethereum's Scaling Roadmap

Uniswap Labs has announced the launch of Unichain, a decentralized Layer 2 (L2) solution designed to tackle the key challenges facing decentralized finance (DeFi) on Ethereum, such as high costs and slow transaction speeds. Built with a focus on decentralization, Unichain aims to lower transaction costs by approximately 95% compared to Ethereum Layer 1 (L1). This new L2 solution accelerates Ethereum’s scaling roadmap by moving transaction execution off L1 while maintaining decentralization. Unichain will launch with one-second block times and introduce 250ms sub-blocks, making transactions feel nearly instantaneous, enhancing market efficiency, and reducing value loss to miner extractable value (MEV).

The platform’s block builder, developed with Flashbots, uses trusted execution environments (TEEs) to improve transaction speed, transparency, and security. Unichain will also offer seamless multi-chain swapping, allowing users to transact across different chains with ease, and features native interoperability with Optimism’s Superchain. Developers can now start building on Unichain's testnet, with a full suite of resources available in the Unichain Builder Toolkit. Mainnet is expected to go live later this year, with support from the Uniswap Foundation through grants and developer programming.

OKX Secures Dubai Regulatory Licence to Offer Crypto Services to Retail Clients, Expanding Reach in the UAE

OKX, one of the world’s largest cryptocurrency exchanges, has secured a Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA). This licence will allow OKX to offer spot and spot-pairs crypto services to retail and institutional clients in the UAE, enabling users to deposit and withdraw funds in local currency. OKX’s expansion into the UAE comes as part of Dubai’s broader initiative to become a global hub for the crypto industry.

VARA was established in March 2022 to regulate the virtual asset sector in Dubai. Rifad Mahasneh, General Manager for OKX’s MENA region, described the licence as a "game changer" for the company’s growth in the region. OKX is now working with VARA to meet final regulatory requirements before fully launching its services. Other crypto exchanges, such as Binance, have also received licences to operate in Dubai as part of the UAE's push to attract major players in the crypto space. OKX is already regulated in the Bahamas but remains unavailable to U.S. customers due to regulatory issues.

Ripple Expands Bank-Grade Custody Solutions to Better Serve Crypto Businesses with Enhanced Security and Tokenization Features

Ripple, a leading provider of digital asset infrastructure, has announced new updates to its Ripple Custody platform, offering advanced bank-grade solutions for fintech and crypto businesses. The upgrades include enhanced security features such as hardware security module (HSM) options, integration with the XRP Ledger (XRPL) for tokenizing real-world assets, and an improved user interface. These new capabilities aim to simplify secure digital asset management and facilitate seamless tokenization and trading on XRPL’s decentralized exchange (DEX). The platform now supports a wide range of assets, including cryptocurrencies and fiat currencies, providing robust compliance integrations to ensure regulatory adherence.

With the ability to tokenize financial assets and manage them securely, Ripple Custody allows businesses to scale their operations while ensuring top-tier security and flexibility. The company is already seeing significant growth, with a 250% year-over-year increase in new customers, serving major financial institutions such as BBVA Switzerland, DBS, and Archax. Ripple Custody's solution is currently operational across key financial markets, positioning Ripple as a critical player in the evolving digital asset economy. As demand for secure, compliant digital asset storage increases, Ripple’s infrastructure is primed to meet the needs of a rapidly growing market.

Bitget Introduces Stricter Token Listing Standards to Enhance Security and Attract Quality Crypto Startups

Bitget, a prominent cryptocurrency exchange, has unveiled new, more stringent token listing standards, aiming to improve security and transparency in the digital asset space. These enhanced guidelines require startups to submit detailed business plans and undergo thorough developer checks, a move designed to curb fraudulent activities and protect investors. Key financial metrics, such as fully diluted valuation (FDV), are now integral to the listing process. For startups raising $5 million, Bitget advises keeping FDV below $100 million to maintain realistic valuations.

Furthermore, the platform is scrutinizing short lock-up periods, viewing them as potential indicators of insufficient long-term commitment from project developers. By implementing these tighter rules, Bitget is fostering a more secure and trustworthy environment for both retail and institutional investors. This shift signals a significant move towards ensuring sustainable growth and higher project standards in the crypto ecosystem, making it especially relevant for startups navigating the competitive digital asset market.

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