1. Crypto Hacking Incidents Dwindled, But Security Concerns Lurk
Despite a drop in the number of crypto hacks in the last quarter, blockchain security firm CertiK reported that the amount of money stolen soared to a staggering $750 million, a 9.5% increase from the previous quarter.
Phishing and private key compromises were the most common methods used by hackers, with Ethereum being the most targeted blockchain, accounting for $668 million in losses.
The average loss per hack reached $5.93 million, with the median loss at $120,529. Only 4.1% of stolen funds were recovered in Q3, a sharp decline from the 14.4% recovered in Q2.
In another report by global intelligence consultancy OODA Loop, crypto hacks exceeded $120 million in September, but it recorded the second-lowest loss after April. Centralised exchanges remain the most common victim for hackers targeting the crypto market, with BingX and Indodax accounting for more than half of the losses in September.
This highlights the ongoing security challenges faced by the crypto industry, and explains why Web3 users are increasingly turning to decentralised exchanges.
The answer to such audacious cyber heists is not always straightforward, but many are recognising the merger of AI and blockchain to tackle these threats. AI's advanced analytical capabilities can identify suspicious transaction patterns, thereby enhancing security and transparency in the crypto ecosystem. This technology can also help in real-time data analysis, fraud prevention, and even predict market changes.
On the other hand, blockchain's decentralised nature offers a robust foundation for improved AI and Web3 integration, reducing bias and providing more secure data management.
For steps that users can take right now to safeguard digital assets, read our guide on the five ways to do so.
2. Visa Announces Blockchain Platform for Banks to Trial Fiat-Backed Tokens
Visa, the global leader in digital payments, has launched a new platform to help financial institutions integrate fiat-backed tokens, such as stablecoins. The platform, called the Visa Tokenized Asset Platform (VTAP), is designed to bridge the gap between traditional banking and blockchain technology.
With VTAP, banks can issue, manage, and experiment with their own fiat-backed tokens in a secure sandbox environment. The platform also enables banks to automate processes, such as administering complex lines of credit, using smart contracts and fiat-backed tokens.
BBVA, a Spanish multinational banking giant, is set to pilot VTAP on the public Ethereum blockchain in 2025. Visa's goal is to enable interoperability across multiple blockchain networks, making VTAP a versatile solution for financial institutions looking to explore the potential of tokenized assets.
3. Coinbase, the Latest Crypto Exchange to Delist Tether's USDT in the EU
Coinbase is set to delist Tether's USDT, the largest stablecoin by market capitalisation, by the end of the year. This move is part of Coinbase's efforts to comply with the European Union's upcoming Markets in Crypto-Assets (MiCA) regulations.
MiCA, which seeks to establish a regulated digital asset framework, requires stablecoin issuers to obtain e-money authorisation in at least one EU member country. It also sets stringent rules for Crypto-Asset Service Providers (CASPs), including centralised exchanges.
Coinbase's decision to delist USDT follows similar actions taken by other exchanges like OKX, Binance, Uphold, and Bitstamp.
In spite of these developments, Tether has praised EU regulators for their efforts in establishing a structured framework for stablecoins, recognising the importance of clear regulations in fostering growth within the sector. The stablecoin issuer has signaled plans for a new technology solution specifically designed for the European market, which is expected to be unveiled soon.
As reported in a previous news round-up, Tether is also forging into AI model development, after announcing record-breaking profits in the first half of the year.
4. Polkadot Brings Cross-Chain Interoperability to Mobile Gaming
Polkadot, a leading Layer 0 blockchain, is making waves in the mobile sports gaming industry by enabling cross-chain interoperability. This means that gamers can now own and trade their in-game assets across different games and platforms, thanks to Polkadot's blockchain technology.
This functionality enhances the play-to-earn (P2E) gaming model, allowing gamers to truly own and benefit from their in-game achievements.
NFL Rivals, a popular P2E game, is already leveraging Polkadot's cross-chain functionality to enhance its in-game economy and provide a more seamless experience for players. By incorporating Polkadot's blockchain technology, NFL Rivals allows players to collect and trade digital assets, like player NFTs. These assets are stored on the Mythos Chain and can be bought, sold, or exchanged on secondary marketplaces.
aelf is an example of an AI blockchain that has reaped the value of artificial intelligence. Besides enhancing network performance and user experience, it saw the introduction of an AI-powered smart contract audit tool, and machine learning models for smart contract optimisation. These ensure that smart contracts created by developers can go live with as little vulnerabilities as possible.
Till date, aelf has maintained a clean record of zero security breaches; the Layer 1 AI blockchain actively engages in comprehensive security audits, with the last round completed by top-tier security firm, CertiK.
For more details of aelf's security protocols as a Layer 1 AI blockchain, you may refer to this documentation.
*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.
About aelf
aelf, an AI-enhanced Layer 1 blockchain network, leverages the robust C# programming language for efficiency and scalability across its sophisticated multi-layered architecture. Founded in 2017 with its global hub in Singapore, aelf is a pioneer in the industry, leading Asia in evolving blockchain with state-of-the-art AI integration to ensure an efficient, low-cost, and highly secure platform that is both developer and end-user friendly. Aligned with its progressive vision, aelf is committed to fostering innovation within its ecosystem and advancing Web3 and AI technology adoption.
For more information about aelf, please refer to our Whitepaper V2.0.
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