The growth and development of the blockchain industry have sparked debates about how to regulate its players. The latest high-profile case that has brought this issue to the forefront is the ongoing legal battle between Coinbase, a leading cryptocurrency exchange, and the U.S. Securities and Exchange Commission (SEC). The crux of the matter is whether cryptocurrency should be classified as a security or a commodity, a question that has far-reaching implications for the entire industry. This article will examine the Coinbase-SEC dispute and its potential impact on the regulation of cryptocurrency.

### **Background on Coinbase and the SEC Case**

Coinbase is a popular cryptocurrency exchange that allows users to buy and sell a variety of digital currencies. In December 2020, the SEC notified Coinbase that it planned to sue the company over allegations that it had sold unregistered securities in the form of cryptocurrency. Specifically, the SEC was focused on Coinbase's proposed Lend program, which would allow users to earn interest on certain cryptocurrencies.

The SEC argued that the Lend program constituted a security under U.S. law and that Coinbase had failed to register it properly. Coinbase, on the other hand, maintained that the Lend program was a commodity and thus did not need to be registered with the SEC.

### **Securities or Commodities, What's the Difference?**

At the heart of this dispute is the question of whether cryptocurrency should be considered a security or a commodity. Let’s look closely at what these two terms really mean.

**Securities** are tradable financial assets, like stocks or bonds. These assets represent ownership in a company or a debt obligation. For example, if you buy stock in a company, you own a small piece of that company. This means that you have a stake in the company's profits and losses. Similarly, if you buy a bond, you are essentially lending money to a company or government and they will pay you back with interest.

**Commodities**  on the other hand, are physical or virtual goods that are traded in financial markets. Examples of commodities include gold, oil, wheat, and other natural resources. If you buy a barrel of oil futures, for instance, you are essentially buying the right to receive a certain amount of oil at a future date at an agreed-upon price.

Crypto assets can be classified as securities or commodities. If a crypto asset is a functioning cryptocurrency or utility token, it's generally considered a commodity. However, if a crypto asset comes into existence via an initial coin offering (ICO) or a token-generated event (TGE) where investors expect to make a return, it's most likely going to be classified as a security and will have to follow securities laws.

There are a few factors to consider when evaluating regulatory risk for any particular crypto asset. These include whether it's a coin or token if it's mineable or decentralized, and if it's functioning in production. Additionally, if there was an ICO or TGE, if it was offered in the U.S. in a public or private sale, and if there was KYC/AML completed are also important considerations. The least risky crypto asset is a mineable coin running on a functioning decentralized blockchain network. The most risky type of coin is a pre-mined and centralized coin that was created through an ICO.

Overall, the difference between securities and commodities boils down to whether the asset represents ownership in a company or a debt obligation (securities) or whether it is a physical or virtual good that is traded in financial markets (commodities).

### Implications for the Cryptocurrency Industry

The outcome of the Coinbase-SEC case could have significant implications for the broader cryptocurrency industry. If the court ultimately rules that cryptocurrency is a security, it could mean that other platforms will also be subject to SEC regulation. This could include requirements for registration, reporting, and compliance with anti-money laundering and know-your-customer rules.

On the other hand, if cryptocurrency is ultimately deemed a commodity, it could mean that platforms like Coinbase will be subject to less regulation and oversight. This could make it easier for these platforms to innovate and grow, but could also make it easier for bad actors to engage in fraudulent activities.

### Final Thoughts

While the ultimate outcome of the case is still unclear, it is clear that this is a complex issue that will continue to be debated for some time. In the meantime, investors and traders in the cryptocurrency space should be aware of the potential risks and uncertainties involved.

But one thing is certain, managing your digital assets has never been easier. Bitpowr offers a comprehensive range of blockchain solutions at competitive prices, including secure wallet solutions. We understand the requirements of digital asset businesses and financial institutions to succeed in the blockchain world. **[Let’s chat about how we can help you today](https://bitpowr.com/contact-sales).**

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Are Digital Assets Securities or Commodities? Understanding the Coinbase and the SEC Case

As a crypto wallet infrastructure provider, Bitpowr has proven to be an instrumental and important part of @Vella's crypto infrastructure With your solution, we have been able to help our customers send and receive payments globally- ****Gabriel Ajenifuja,**** CTO Vella Finance. 

**What were the challenges?** Existing solutions were not scalable, and there were security and compliance concerns.

👉 Bitpowr provided Vella Finance with a secure MPC wallet to confidently store and manage their digital assets while still maintaining complete control over their funds.

👉 The automated KYT/AML helped Vella Finance comply with regulatory requirements and ensure that all transactions were legitimate and not fraudulent.

👉 Our flexible policy engine allowed Vella Finance to customize its security policies to meet its specific needs.

We are proud of being part of Vella Finance's success story and will continue to offer our support as they grow and innovate in the payment industry.

Don’t just take our word for it, [Let's have a conversation](https://bitpowr.com/contact-sales) about how we can help you too scale and grow your fintech product today.

Discover how Vella Finance, a global payment infrastructure, is harnessing the power of Bitpowr to enhance and Grow their business operations.

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Bitpowr & Vella Finance 

Bitcoin users are experiencing some of the highest transaction fees in years, as the network struggles to keep up with growing demand. According to BitInfoCharts, the average Bitcoin transaction fee as of the time of writing is **$11.05 per transfer**, or **0.0004 BTC**, which is more than double the fee a year ago. The backlog of unconfirmed transactions is also at a record high, with Mempool Space reporting over **413,436 TXs** pending transactions at the time of writing. 

In the last couple of days, we have seen some transactions with outrageous fees ranging from as low as $50 to as high as $15,000. Here’s a [link](https://mempool.space/tx/22315dab4af7fc0bef2b8b657a3386988e41addbc224fdba8af74665e5777135) to such transactions: 

Let’s look at some reasons for the surge and possible ways to navigate through it.

### Why are Bitcoin fees surging?

In the past, blockchain congestion has been caused by various factors such as high transaction volumes, slow block times, and inadequate block size limits.

Currently, Bitcoin's block size limit of 1 MB limits the number of transactions that can be processed per block, leading to competition among users for limited space. Second, the recent price surge of Bitcoin has attracted more users and traders, who are willing to pay higher fees to ensure timely confirmations. Third, the upcoming Bitcoin halving event, which will reduce the block subsidy reward from 12.5 BTC to 6.25 BTC, may be causing miners to prioritize high-fee transactions to compensate for the reduced income.

### **How can this be addressed?**

To address these issues, the Bitcoin community has implemented several solutions in the past, such as the SegWit upgrade and the Lightning Network. While these solutions have helped to reduce fees in the past, they have not been able to keep up with the recent surge in demand.

But how can you do to optimize your Bitcoin fees and save money? Here are some tips:

- Estimate your fees: Before sending a Bitcoin transaction, use a fee estimator tool to get an idea of the optimal fee based on the current network conditions. Some popular fee estimator sites are [Bitcoin Fees](https://bitcoinfees.net/) and  [Estimatefee.com](https://estimatefee.com/)
- Choose the right wallet: Not all Bitcoin wallets are created equal when it comes to fees. Some wallets allow you to customize your fees, while others use a fixed fee structure. Look for wallets that support Segwit, which can reduce your fees.
- Use batching: If you frequently send multiple small transactions, consider using a wallet that supports batching, which allows you to combine several transactions into one and save on fees.
- Wait for low-fee periods: If your transaction is not urgent, consider waiting for periods when the network is less congested, such as weekends or late nights.
- Consolidation: Consolidation helps in coin management if dealing with multiple addresses. It basically helps to create and combine small transactions from multiple addresses to a single address.

### In conclusion

Bitcoin's recent surge highlights both its growing adoption and the challenges facing the blockchain ecosystem. The network's high fees and congestion underscore the need for efficient scaling solutions. Regulatory and institutional developments could also impact Bitcoin's value and role in the digital economy. It's crucial for every party to be aware of the risks and opportunities of cryptocurrencies and other assets, as their future success depends on their ability to meet user demands and provide secure, efficient, and inclusive financial services.

[At BitPowr](https://bitpowr.com/blog/bitpowr-wallet-now-supports-bitcoin-seg-wit-addresses), we understand that the key to staying ahead in the blockchain game is innovation. That's why we've made sure that our wallets support Bitcoin SegWit addresses, allowing you to take full advantage of the latest blockchain technology.

With SegWit support, you'll benefit from faster transaction times, lower fees, and greater network capacity, all of which can give you an edge in the competitive world of digital asset management. Plus, you can rest easy knowing that your funds are secure and accessible whenever you need them.

So if you're looking for a reliable and innovative partner in the blockchain space, look no further than BitPowr. Contact our sales team at **[sales@bitpowr.com](mailto:sales@bitpowr.com)** to learn more about our services and how they can help you achieve your financial goals.

In the past days, Bitcoin fees have been outrageously high. In this article we explore the reasons and look at ways to navigate through it 

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Understanding the Reasons for the Recent Surge in Bitcoin Transaction Fees

### **Growth of NeoBanks in Africa, India, and Latin America**

“Neobanks” also known as challenger banks are online-only banks that offer lower fees and more convenient services than traditional banks. They have become increasingly popular in emerging economies, where many people are underserved by traditional banks. Latin America, Africa, and Asia are expected to experience the most growth in the Neo banking space over the next decade.

**In Africa**, Neobanks are also being used to improve financial access. 

According to Statista, the sector in Africa is expected to experience significant growth in the coming years. The transaction value of Neobanking in Africa is projected to reach US$30.97 billion by 2027, up from US$5.02 billion in 2020. This growth can be attributed to several factors, including the increasing adoption of digital technology, rising smartphone penetration, and changing consumer behavior and preferences toward more accessible and convenient banking services.

Neobanks in Africa have been able to cater to populations underserved by traditional banks, providing lower costs and greater flexibility. The rise of digital banking solutions, such as mobile banking and online account opening, has allowed Neobanks to offer accessible and convenient banking services to these populations. Additionally, Neobanks have expanded into new markets, including SME lending and investment services, and are increasingly partnering with traditional financial institutions to offer white-label banking services.

**In Latin America**, Neobanks have emerged as a way to provide financial services to low-income earners who have historically been excluded from the traditional banking system. Expensive banking licenses and a bureaucratic process for setting up accounts have limited access to the financial system. However, recent regulatory changes in Brazil and Mexico have lowered the regulatory hurdle and created large Neobanking sectors in these two countries.

**In India**, the number of Neobank users is projected to reach 135.2 million in 2023, up from 42.5 million in 2019. This growth is also being fueled by factors such as a large unbanked population, a high level of smartphone penetration, and the government's push for digitalization and financial inclusion.

In recent years, several Neobanks have entered the Indian market, including Paytm Payments Bank, Airtel Payments Bank, and DBS Bank India. These Neobanks are leveraging digital technologies such as mobile apps and digital wallets to offer customers a range of banking services, including account opening, money transfers, bill payments, and investment options.

One of the major advantages of Neobanks in India is their ability to serve underserved and unserved segments of the population. For example, many Neobanks are partnering with microfinance institutions and other financial intermediaries to reach customers in rural and remote areas. This is helping to promote financial inclusion and reduce the number of unbanked individuals in the country.

As the Neobanking market in Africa and across the globe continues to grow, the development of fintech infrastructure is expected to play a crucial role.

*Bitpowr offers the necessary infrastructure to seamlessly integrate blockchain solutions into your primary banking operations, enabling you to provide advanced and secure financial services*

This infrastructure will enable Neobanks to offer more sophisticated services and solutions, further driving the adoption of Neobanking services in the region. Overall, the future of Neobanking in Africa looks promising, with increasing smartphone penetration and changing consumer preferences expected to drive continued growth and expansion in the market.

### **How Stablecoins can help Neobanks improve operations**

Making cross-border payments through Neobanks comes with a lot of challenges and Stablecoins are helping to ease that whole process. These digital currencies, which are pegged to other assets like the US dollar or euro, offer less volatility than traditional cryptocurrencies, making them an attractive option for those looking to protect their savings. Stablecoins also offer a solution for small and medium-sized enterprises (SMEs) in Africa, who struggle to access dollars or other major currencies for cross-border trades.

Neobanks can also benefit from stablecoins, as they provide a faster, more efficient way to transfer funds across borders. Neobanks can leverage stablecoins to offer their customers low-cost, instant cross-border payments, making it easier for them to transact with customers and suppliers in different countries. Additionally, stablecoins can help Neobanks reduce the risk of currency fluctuations, as the value of stablecoins is tied to a stable asset, which can provide greater stability compared to traditional fiat currencies. Overall, stablecoins have the potential to revolutionize cross-border payments, and Neobanks that embrace this technology will be better equipped to operate in the global economy.

### **Bitpowr provides Neobanks with the infrastructure to thrive.**

Bitpowr is providing range of services that allow financial institutions, including Neobanks, to utilize blockchain technology for enhancing their operations, ultimately leading to business growth.

- With Bitpowr, financial institutions can manage customers' assets securely with a wallet infrastructure that provides flexible control. Bitpowr also leverages a multi-party computation (MPC)-based vault for secure custody and initiates automated anti-money laundering (AML) and know-your-transaction (KYT) procedures.
- Bitpowr's smart contract technology enables financial institutions to automate key processes and transactions while guarding against human error, ensuring error-free transaction processing and transparent auditing.
- Bitpowr enables financial institutions to tokenize assets, making it easier to manage, transfer, and sell assets. Financial institutions can also create and deploy security tokens.

In summary, Bitpowr provides ready-to-deploy blockchain infrastructure to financial institutions, including Neobanks, to simplify asset management and international payments while increasing customer base and revenue. **[Reach out to learn more](https://bitpowr.com/contact-sales).**

The future of Neobanking looks promising, here is how the blockchain can help accelerate it's growth.

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Neobanks: A Catalysts for Global Financial Transformation.

Blockchain technology has been around for over a decade, and it has been widely adopted across various industries. However, technology has grown and evolved into different layers, each with its unique characteristics and purposes. The layers are referred to as Layer 0, Layer 1, Layer 2, and Layer 3. In this article, we will explore each layer in detail.

### What are Blockchain layers?

Blockchain technology has brought about a revolutionary change in the world of finance and beyond. However, the complexity of the technology can be intimidating for newcomers, especially when trying to understand the different layers that make up the blockchain ecosystem.

When most people think of cryptocurrencies, they tend to focus on market capitalization, which can be misleading. The value of a cryptocurrency isn't just determined by its market capitalization; it's also influenced by the specific problem it solves, its underlying technology and the layer of the blockchain ecosystem it occupies.

Blockchain layers are the different levels of infrastructure that work together to enable the operation of a blockchain-based system. Each layer builds on top of the previous one, with each layer leveraging the infrastructure of the previous layer.

To make it easier to understand, the blockchain ecosystem is often divided into four layers:

### Layer 0 – Software Infrastructure

Layer 0 refers to all digital technologies that make blockchains possible. The goal of Layer 0 is to make blockchain networks functional, accessible, and interoperable. Achieving this allows developers to find more innovation opportunities, creating more token utility for users. Layer 0 makes possible functional blockchains via physical infrastructures such as hardware, electricity, and Internet services. Decentralization is a significant difference between traditional telecom companies and Layer 0 projects. Layer 0 protocols allow blockchains to communicate better, so they can synergize and use each others' dApp ecosystem.

The value of Layer 0 is cross-chain interoperability protocols (CCIP). Interoperable blockchains can seamlessly transfer information and tokens that aren’t necessarily compatible. Polkadot, Cosmos, and Chain Link are examples of CCIP projects that provide off-chain data to apps and blockchains.

### Layer 1 – Blockchains/Networks

Layer 1 projects are blockchains. Public blockchains are digital ledgers designed to easily read or add financial data and prevent changing the existing one. Each blockchain has a different consensus model to agree on what data to add, along with smart contracts to automate transactions without third-party intervention. Unlike applications, smart contracts are autonomous programs that don’t interact with users directly. Some smart contracts, like Bitcoin’s, only allow basic payments, while others, like Ethereum’s, allow developers to create complex applications.

Other Layer 1 blockchains include Solana, Binance Chain, Ripple, Monero, and Litecoin. Developers choose a blockchain based on their architecture, and each network gives priority to scalability, security, and decentralization.

### Layer 2 – Sub-Blockchains (or software upgrades)

When blockchain developers use other blockchains to build their own, they are called Layer 2 blockchains. Because they use infrastructure from Layer 1 blockchains, they are more scalable and efficient. For example, Ethereum has L2 blockchains Polygon, Arbitrum, and Optimism, which are faster and cheaper. However, they are more centralized because of their smaller size. This dependence also means that L2s cannot run when L1s are down. Inversely, many L2s are experimental networks, so there’s no guarantee they’ll be as secure as L1 blockchains.

L1 blockchains have regular updates set by the community, such as Ethereum 2.0 or Bitcoin Taproot. Flexible blockchains become more secure and decentralized over time. On immutable blockchains like Ethereum, smart contracts prevent such changes. Instead, developer communities create hard forks like PulseChain. A fork blockchain is a variant of the original blockchain that involves new features and code tweaks, thus having different scalability, security, and decentralization. The teams that design Layer 2 and fork chains are often unrelated to Layer 1 founders.

### Layer 3 – Decentralized Applications (DApps)

Layer 3 is where the action happens. Decentralized applications (DApps) built on top of blockchains are the main attraction of Layer 3. DApps are software applications that run on a blockchain network and provide a decentralized user experience. They range from simple applications like cryptocurrency wallets to complex financial applications like decentralized exchanges, lending protocols, and prediction markets.

DApps are built on top of different blockchains, and each blockchain has a different consensus model and smart contract capabilities. Ethereum is the most popular blockchain for

It's important to note that each layer serves a unique purpose and is essential to the operation of the blockchain ecosystem. Without a strong foundation in the lower layers, the upper layers would not be able to function properly. Therefore, it's crucial to have a good understanding of each layer to fully appreciate the potential of blockchain technology.

**Don’t Be Left Behind**

As the digital economy continues to evolve, it’s evident that the blockchain is playing a major role. To successfully take advantage of this and build your layer3 solutions, you’d need reliable blockchain infrastructure for seamless access to multiple blockchains, and networks and that’s what Bitpowr provides. And if you already run a DeFi-based business or are looking to kickstart one, we also have all you need to run and scale your digital asset business easily, quickly, and cost-effectively. [Let’s chat here](https://bitpowr.com/contact-sales).

Discover the different Blockchain layers and their functions.

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Blockchain layers L0, L1, L2, L3 

Artificial intelligence (AI) and blockchain are two disruptive technologies that are predicted to have a profound impact on society over the next decade. According to a Facts and Factors market research analysis, the global AI market size was predicted to expand from $29.86 billion in 2020 to $299.64 billion in 2026, and the worldwide blockchain market from $3 billion in 2020 to $39.7 billion in 2025. 
While these analyses are subject to change due to market conditions, it's clear that there is a growing demand for AI, especially after the emergence of ChatGpt. Who knows what the future holds? This may very well be the most significant innovation of the decade. Let's examine some of the potential applications that could arise from the integration of AI and Blockchain. These possibilities could lead to new advancements that were previously unimaginable.

## Brief Definition of Terms

AI is the attempt to replicate human intelligence in machines, to mimic human problem-solving skills, and to make decisions based on historical data and information. It seeks to go beyond the traditional strengths of computers, such as speed and accuracy, to encompass a more human-like approach to decision-making. However, while AI is capable of learning from historical data and making decisions based on that data, it can also make mistakes or be subject to fraudulent inputs. This is where Blockchain comes in.

Blockchain is a distributed ledger that uses cryptography to ensure the security and transparency of transactions. It is often associated with cryptocurrencies such as Bitcoin, but its applications extend far beyond that. Blockchain can create a secure and transparent record of transactions, which cannot be altered or deleted. This means that once a transaction is recorded, it becomes a permanent part of the blockchain.

Everything being equal, in a perfect scenario, if AI and Blockchain are combined, the result is a system that can learn from historical data and make decisions based on that data, while at the same time ensuring the security and transparency of the data. Blockchain can create a tamper-proof record of the data used by AI systems, making it easier to audit and verify the data. This can lead to greater trust in the decisions made by AI systems, as the data used to make those decisions can be verified as accurate and trustworthy.

##  Some Case Studies

**Microsoft Xbox and EY**

By leveraging AI and blockchain technology, Xbox was able to automate many of the processes involved in managing rights and royalties. This reduced the need for manual intervention and increased efficiency. AI was also used to analyze transaction data and identify patterns and anomalies, helping to prevent fraudulent activities.

Smart contracts were used to accurately and transparently process the royalties for Microsoft Xbox’s partners. The next step was to securely and transparently share the information with them in near real-time, cutting access to royalties from 45 days to 4 minutes which lead to a more enriching experience for the partners. The use of AI and blockchain technology greatly improved Xbox's royalty management system, creating an efficient and secure platform for managing rights and royalties. [Read more here](https://www.ey.com/en_gl/consulting/how-blockchain-helped-a-gaming-platform-become-a-game-changer) 

According to Jeff Wong the Global Chief Innovation Officer at [EY](https://www.ey.com/en_gl), this system has the potential to become the highest volume blockchain in the world, surpassing even Bitcoin and Ethereum on a daily basis. 

**BurstIQ**

BurstIQ created a comprehensive solution to manage patient data, known as the "Health Wallet." It combines AI, blockchain, and big data to provide a holistic approach to managing patients' health records and wellness programs. Through the Burst IQ wallet, healthcare providers can access a patient's health information securely. Moreover, healthcare professionals can leverage this information for scientific research and gain a better understanding of various ailments. Patients have the option to share their aggregate health data while keeping their sensitive information secure through blockchain technology. [Read more here](https://burstiq.com/build-a-health-app-faster-with-burstiq/)

**IBM and IPwe**

By combining AI and blockchain technologies, IPwe with the help of IBM was able to create a Global Patent Registry (GPR) that is automated and transparent. The GPR is unique as it is the world's first blockchain-based registry that consolidates current, active, and past patent records into a single, publicly accessible repository. This technology is useful in eliminating the challenges associated with comprehending the critical components of patent information. Moreover, it facilitates both record-keeping and smart contract creation for the underlying asset. [Read more here](https://www.ibm.com/case-studies/ipwe/)


## What are other Possibilities?

- **Financial services** : IBM highlights that blockchain and AI technologies are boosting trust and speeding up multiparty transactions. In the context of the loan process, applicants can grant consent to access their personal records stored on a blockchain, enabling trust in the data and allowing AI-powered automated processes to evaluate the loan application quickly. This ultimately leads to faster loan approvals, resulting in improved customer satisfaction.
Financial institutions looking to ensure the security and speed of their transactions can leverage [Bitpowr's blockchain infrastructure](https://bitpowr.com/use-cases/financial-institutions). Bitpowr's platform creates a secure and tamper-proof ledger that tracks every transaction in real time, promoting transparency and reducing the risk of fraudulent activities. With faster transaction processing capabilities, Bitpowr's solution can also help financial institutions reduce their operational costs while enhancing the customer experience.

- **Secured Multi-Party Computations can be used to securely distribute and compute AI models:** Secured Multi-Party Computations (sMPC) is a cryptographic technique that enables multiple parties to jointly compute a function while keeping their inputs private. In the context of AI and blockchain, sMPC can be used to securely distribute and compute AI models across multiple parties without revealing the underlying data. This allows organizations to collaborate and share data for AI training and modeling purposes without compromising the privacy of the data.
sMPC architectures can be used to enable secure and private computations of AI models, such as training and prediction, on data stored on a blockchain. This ensures that the data is not exposed to any third parties and that the computations are performed in a trustless and decentralized manner. sMPC can also be used to enable secure and private data sharing between multiple parties without exposing the data.

- **Improved data quality**: AI algorithms rely heavily on high-quality data to generate accurate predictions and insights. Blockchain technology can help improve the quality of data by ensuring that it is accurate, up-to-date, and tamper-proof. This is especially important in industries like healthcare and finance, where the quality of data can have a significant impact on decision-making.

- **Data Privacy**: Another area where AI and Blockchain can create synergy is in the field of data privacy. With the rise of big data, there are growing concerns about how data is collected, stored, and used. AI can help to analyze this data and identify patterns and trends, but there are concerns about the privacy of this data. By using Blockchain to create a secure and transparent record of data usage, it may be possible to address these concerns and create a more trustworthy system for the collection and analysis of data.

- **Creation and Running of DAOs**: One of the main advantages of combining AI and Blockchain is the potential to create decentralized autonomous organizations (DAOs). These are organizations that are run entirely by software, without the need for human intervention. By using AI to make decisions and Blockchain to ensure the transparency and security of those decisions, DAOs can create a new paradigm for how organizations are run. This could lead to more efficient and effective decision-making, as well as greater transparency and accountability.

- **Predictive Analytics**: AI can be used to extract insights from the vast amounts of data stored on the blockchain, enabling predictive analytics to be performed. For example, AI could analyze data about the transaction history of a cryptocurrency to predict future price movements or analyze data about a company's supply chain to predict future demand for its products.

- **Smart Contracts**: Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into code. AI can help to enhance smart contracts by enabling them to automatically adapt to changing conditions or execute certain conditions based on data stored on the blockchain. For example, an AI-powered smart contract could adjust the terms of an insurance policy based on data about the performance of the insured asset, such as a vehicle or machine.

- **Fraud Detection**: Blockchain's immutability and transparency make it an ideal platform for detecting and preventing fraud. AI can be used to analyze blockchain data in real-time to detect unusual patterns of behavior, such as a sudden influx of transactions or a large transfer of funds. This can help to identify potential fraud or cyber-attacks and enable proactive measures to be taken.

- **Supply Chain Management**: AI can be used to enhance supply chain management on the blockchain by enabling real-time tracking of goods and services. AI-powered sensors can be used to collect data about the location, condition, and quality of goods as they move through the supply chain, with this data being stored on the blockchain. This can help to improve supply chain transparency and reduce the risk of fraud or counterfeiting.

-  **Insight into Cryptocurrency Monetization**: Cryptocurrency traders rely heavily on a variety of indicators. However, manually producing reliable signals may be impossible given the ubiquity of unstructured data in the digital world. Before being evaluated for investing insights, large amounts of data must be clean, relevant, and correct. Data scientists and engineers can use AI to create strategies for traders to obtain relevant and clean data on a platform. Natural language processing techniques can classify and extract data based on criteria like currency name, document kind, currency founder, and more. Data scientists can utilize AI to give accurate trading information in a dashboard or interface that non-technical traders or investors can understand. Investors and traders can then use the knowledge to increase their earnings.

-  **Accurate Cryptocurrency Market Predictions**: When the number of investment options expands, manual inquiry, extraction, and analysis approaches are no longer effective in discovering investments and buy/sell signals. AI has become a popular tool in the financial industry, and when combined with blockchain, it becomes even more effective. Larger financial firms, such as Goldman Sachs, Citigroup, and Barclays, have already begun incorporating AI into their workflows, while small and medium-sized businesses follow suit.

## What are the possible constraints to this synergy?

As with every innovation, it is not without its challenges there are several potential constraints to the synergy between AI and blockchain, which could include:

1. Scalability: Both AI and blockchain require significant computational resources, which can make it challenging to scale their use cases to a large number of users.
2. Data privacy: While blockchain provides a secure and decentralized storage solution, it is difficult to ensure data privacy when multiple parties are involved in the storage and processing of data.
3. Regulatory challenges: The use of AI and blockchain may face regulatory challenges as governments and other regulatory bodies seek to balance innovation with privacy and security concerns.
4. Interoperability: Different blockchain networks and AI systems may have different protocols and standards, which can make it difficult to integrate them seamlessly.
5. Adoption: Adoption of new technologies always takes time and requires significant investment, both in terms of financial resources and education and training for users.
6. Security: The security of blockchain and AI systems can be compromised by hackers or other malicious actors, which could result in loss of data, identity theft, or other types of fraud.
7. Complexity: The combination of AI and blockchain technologies can result in complex systems that require specialized skills and expertise to develop, maintain, and use effectively.

## Wrapping up

In conclusion, the combination of AI and blockchain has the potential to revolutionize the way we store, process, and analyze data. From enhancing smart contracts to detecting fraud, managing supply chains, and improving decision-making in DAOs, the possibilities are endless. As these technologies continue to evolve, we can expect to see more innovative solutions that harness their combined power to drive new levels of efficiency, transparency, and security in various industries.

Bitpowr remains your safest institutional MPC-protected Wallet- Built from the ground up to enable financial institutions to leverage the Blockchain to ease financial transactions. With this, you can focus on what matters most: delivering more value and innovative products to your customers. [Reach out to us](https://bitpowr.com/contact-us) if you need more information, we are happy to help.



Explore the various applications that can be accomplished through the integration of AI and blockchain technology.

AI and blockchain.jpg

AI and Blockchain: Are There Possible Synergies?


Cryptocurrency transactions are a vital part of the digital economy, allowing individuals and businesses to transfer digital assets across the globe with ease. However, the decentralization and anonymity of blockchain technology can also create vulnerabilities, making it easier for malicious actors to engage in fraudulent activity.

To combat this, Bitpowr, a blockchain infrastructure provider, has introduced a new system to validate transactions, prevent fake transactions and improve the overall security of working with digital assets transactions.

At its core, Bitpowr's system works by using a combination of indexing and tracking to monitor cryptocurrency transactions in real-time from new blocks produced or any unconfirmed transactions present in the Mempool.

When a transaction is initiated and present in the Mempool or a block, the system immediately tracks and indexes it, allowing it to be validated against a series of rules and criteria to ensure that it is a legitimate transaction.

One of the key components of Bitpowr's transaction monitoring system is the use of indexers to index and track transactions as they occur, decode each transaction's data, and validate the information decoded. 

These indexers primarily monitor each block produced, index the block transactions, and scan through them in real time for transactions related to a specific address. This allows us to detect transactions related to addresses as soon as they occur and prevents transactions from slipping through undetected.

In addition to the monitoring system, Bitpowr introduces a new system that includes a series of validation rules that are applied to each transaction. 

These rules are designed to identify common signs of fraudulent activity, such as transactions that involve suspicious addresses (OFAC sanctions or chain abuse reports), suspicious or dangerous methods like (_approve_), invalid transaction status, and transaction confirmations.

If a transaction is flagged by the validation rules, it is immediately halted and flagged for further review, preventing it from initiating a notification to the customer's webhook.

Finally, once a transaction has been validated and confirmed, Bitpowr sends a webhook notification to the customer indicating that the transaction has been processed successfully. This notification includes detailed information about the transaction, including the amount transferred, the destination address, and the time and date of the transaction.

**Some of the methods that Bitpowr uses to validate transactions include:**

**Transaction Confirmation**: This involves checking whether the transaction has been confirmed by the blockchain network. In general, it's recommended to wait for at least 6 confirmations before considering a transaction as fully validated. Bitpowr scan transactions from 0 confirmation up to 6 confirmation.

**Transaction Validity**: Each transaction has a unique hash associated with it, which can be used to confirm that it has been added to the blockchain and not failed or reverted. By validating the hash, Bitpowr ensures that the transaction is legitimate and has been successfully processed.

**UTXO Outputs Validation**: For UTXO-based blockchains like Bitcoin, Bitpowr validates the output to ensure that the address, amount, and index match what was expected. This ensures that the transaction is sending the correct amount to the correct address.

**EVM Input Metadata Validation**: For Ethereum-based blockchains that use the EVM (Ethereum Virtual Machine), Bitpowr decodes EVM and TVM inputs data, validates each detail such as the ERC-20 token amount, contract address, contract method, and other vital information to ensure that the transaction is legitimate. Bitpowr also checks for the status of the transaction ensuring it was not rolled back or failed on the chain.

**AML Scan**: Bitpowr also performs additional checks by scanning addresses against databases like the Office of Foreign Assets Control (OFAC) and ChainAbuse to ensure that they are not associated with fraudulent or illegal activities. This provides an extra layer of security, helping to prevent transactions with known bad actors and reducing the risk of fraud and other malicious activities.

By combining these methods, Bitpowr is able to validate transactions in real-time, preventing fraudulent activity and ensuring that customers receive accurate and reliable notifications about their transactions. This approach helps to build trust and confidence in the blockchain network, making it easier for individuals and businesses to transact with confidence in the digital economy.

Overall, Bitpowr's system for validating transactions to prevent invalid or fake transactions is an important step forward in improving the security and reliability of cryptocurrency transactions. As the digital economy continues to grow, solutions like Bitpowr's will become increasingly important for ensuring the safety and security of digital assets.

Bitpowr, a blockchain infrastructure provider, has introduced a new system to validate transactions, prevent fake transactions and improve the overall security of working with digital assets transactions.

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Introducing Bitpowr Transaction Validation Layer

When our Co-founder and CEO, Tobi Oyetoke announced during a team meeting in 2022 that the company had been accepted into 500 Global Flagship Accelerator Program, you could detect the excitement and expectation in his voice. Going by our recent interview with our other Co-founder, Amarachi Amaechi, a few months after the journey with 500 Global kicked off, the accelerator program delivered on its promises and exceeded expectations.

500 Global is a reputable venture capital firm managing over $2.7 billion in assets. The firm invests in fast-growing technology companies and has so far backed 2700+ startups worldwide including big names such as Canva, Udemy, GitLab, Credit Karma, Grab, The RealReal, and others.

One of 500 Global’s pipelines for spotting which companies to invest in and set up for success is its [Flagship Accelerator Program](https://500.co/accelerators/500-global-flagship-accelerator-program). The current accelerator evolved from a program that started in 2010 when the firm referred to as 500 Startups then, sought to create a four-month accelerator program focused on helping founders to scale and grow their early-stage startups. This was the opportunity we needed as we approached a year in business and it found us. 

On how we got into the accelerator program, Amarachi said, “we didn’t really apply. We were just at the right place at the right time.” When pressed further, she narrated the intriguing story behind our acceptance into the program, “we were at an event and I introduced myself. Later, a partner at 500 Global reached out and was like “hey, we love what you’re building” and that was how we began the whole conversation. We had meetings with the 500 Global investment committee and in like 3 weeks, we got the news that we had been accepted into the program.”

![1680539261516.jpg](https://res.cloudinary.com/samvwede/image/upload/v1680764521/1680539261516_6aee9603ac.jpg)

According to Amarachi, we had our eyes peeled for mentorship opportunities and had earlier applied to Techstars but didn’t get in, so clinching a spot in 500 Global’s program in such a manner felt like the universe was looking out for us. “500 Global was like an answered prayer or a dream come true because as a first time founder, you need all the help you can get. You need guidance, mentorship and money too,” she said. 

The perks of enrolling in 500 Global Flagship Accelerator Program are everything founders and their startups require to thrive in the short- and long-run. From access to a vibrant network of thousands of fellow founders and hundreds of accomplished mentors, to exposure to expert-led training and resources focused on marketing, sales, product development, and more, the accelerator program provides highly coveted growth-enabling support.

Our Co-founder, Amarachi, was quick to note how critical this kind of support is to founders. “As first time founders we need all the support we can get. Building is hard, being a founder is tasking, so if you don’t have the support you need to keep you going, it can be discouraging.” Amarachi noted. 

“But if you have the support, it’s better. For instance,  we have a Slack channel filled with founders 500 Global has backed, people who have overseen exits, etc. You have great people in your corner that you can always talk to. Having access to a community of founders is like a game-changer,” she added.

![1680539261462.jpg](https://res.cloudinary.com/samvwede/image/upload/v1680764521/1680539261462_d2a1ebe71d.jpg)

When asked to elaborate on how going through the program would help with building Bitpowr going forward, Amarachi said, “We’ve made good connections with several interesting founders and mentors. Some of the mentors are VCs from prominent venture funds. In terms of sales, 500 courses and mentorship sessions have given us better ideas on how to build and grow the business. In terms of product, we’ve seen how we can better structure our product. In terms of team building, we’ve also spoken to mentors in the managerial and people operations sphere and we’ve learnt better ways to lead and manage the team. I think all this will be very effective in running the company.”

Our co-founders found the four-month intensive program demanding as they had to combine going through the accelerator and maximizing the engagements with running the company. But Amarachi believes the format of the just concluded edition of the accelerator program made things easy.

“During our time, it was fully virtual so you get resources. You have a founders hub filled with resources on different sectors, like a self-paced course:  fundraising, marketing, product development. Then we usually had weekly calls with the 500 Global team, some were to get hands-on training with experts. Then you have access to a pool of mentors in different sectors, so if you need legal advice, financial advice, fundraising advice, you have mentors for that. The good thing is, even after the program, we still have access to all those mentors, so we can always go back to them,” Amarachi said.

One of the highlights of the accelerator program was Demo Day, which was the concluding act for the participating founders. The 19 founders in this cohort pitched to investors in person in San Francisco on March 23, 2023. Speaking about the preparations for Demo Day, Amarachi said, “Those of us who were not in San Francisco were asked to move down, and we did. Preparations for Demo Day started around the 6th (February). Every day, we’d go to the office, pitch with our decks, get feedback, go back to the drawing board, rinse and repeat.” 

![IMG_1221.jpg](https://res.cloudinary.com/samvwede/image/upload/v1680764733/IMG_1221_841699fb91.jpg)

To emphasize how committed 500 Global was to ensuring the founders delivered great pitches on Demo Day, Amarachi pointed out additional training structures they put in place. “ We even had a mentor who specifically helped us with presentation tips like how to own the stage, capture and sustain our audience’s attention, etc. Then there was the Demo Day Preview where we pitched to friends of 500 Global and alumni and also got feedback from them. From that point onwards, we mostly had light training and review sessions till Demo Day.”

![IMG_1217.jpg](https://res.cloudinary.com/samvwede/image/upload/v1680764564/IMG_1217_199f416b53.jpg)

Following weeks of intense preparations, Amarachi delivered a compelling pitch that highlighted the Bitpowr vision. In two minutes she gave a rundown of our resolve to provide blockchain infrastructure to financial institutions, why it matters and how far we’ve come since launching a year ago. Her delivery was punchy, clear and authoritative and made the team proud, particularly Bitpowr’s Nigeria-based employees who weren’t to be deterred by the time difference and were up at 1 AM (WAT) to watch their Co-founder pitch to global investors.

![1680539261588.jpg](https://res.cloudinary.com/samvwede/image/upload/v1680764521/1680539261588_482b81ead6.jpg)

On what’s next for Bitpowr following Demo Day, Amarachi noted a few high-priority items: “Before the demo day, 500 held a preview session and we already started meeting investors and other interesting folks. People are still reaching out and we are still trying to take all the meetings with investors and see how we can complete our round. We are currently raising $2m to fund compliance, license insurance and hire engineers and customer acquisition and product development team members.” 

“The next couple of weeks will be dedicated to meeting more interesting people, looking for potential partners, and networking with other founders,” Amarachi added.

We are excited for what the future holds and remain grateful for the opportunity to have enrolled in such a reputable accelerator program. Becoming a member of the 500 Global family means a lot to us and will no doubt play a pivotal role in our growth and success. For now, we’ll commit to using all the resources at our disposal to fulfill the potential that made the 500 Global team take a chance on us and also contribute to the growth of other members of the community. 

The end of the accelerator program is the start of a new journey because in Amarachi’s words “once in 500, always in 500. We keep learning and building.”


Going through 500 Global Flagship Accelerator was the perfect anniversary gift; discover all the interesting bits of our experience.

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Bitpowr's 500 Global Accelerator Experience

The collapse that once seemed like a devastating blow to the crypto market ultimately became a catalyst for change. FTX's collapse was that devastating blow it resulted in customer losses exceeding $8 billion, this and more collapses left investors reeling, with some even losing all their assets. There was a general sense of fear and anxiety among crypto investors, as they speculated that the event could lead to a catastrophic downturn in the crypto market.

However, out of this crisis, a new breed of companies emerged. These companies offered self-custody wallets as a solution to the problem of centralized exchanges. Self-custody wallets allowed users to have greater control and security over their assets, and these companies quickly gained popularity.

As awareness of the benefits of self-custody wallets grew, so did interest in decentralized finance (DeFi) platforms. These platforms provided an alternative way for users to access financial services, without the need for intermediaries or centralized institutions.

Data from Glassnode, a cryptocurrency research firm, indicates that many long-term crypto investors have moved their assets to self-custodial wallets. In the week after the FTX incident, investors withdrew nearly $3 billion worth of BTC from exchanges.

Similarly, CryptoQuant data shows that crypto users withdrew $2.5 billion worth of ETH from centralized exchanges, and these assets are being channeled into DeFi platforms. Decentralized exchanges (DEXs) experienced a 150% increase in volume, with $32 billion in trades executed in the week following the FTX incident.

What difference does this make for the Blockchain ecosystem? let’s find out why below.

### What difference does a Self- Custody Wallet make?

Self-custody wallets offer several advantages over centralized custodians. Firstly, they eliminate the need for users to trust a third party with their funds, reducing the risk of hacks, loss of funds, or other security breaches. Secondly, they enable users to maintain complete control over their funds and private keys, allowing them to transact with their cryptocurrency assets as they see fit.

Prominent people like the founder CZ tweeted “*Self custody is a fundamental human right” advising the community “do it right”.*

Another factor contributing to the rise of self-custody wallets is the growing demand for privacy and security in the cryptocurrency industry. With the increasing prevalence of surveillance and data breaches, users are becoming more aware of the importance of safeguarding their personal information and financial assets. Self-custody MPC wallets like [Bitpowr](https://bitpowr.com/features/mpc-custody-wallet) provide a secure, private, and decentralized means of storing and transacting with cryptocurrency assets.

### Some Benefits of Self-Custody Wallets

Self-custody wallets, also known as non-custodial wallets, offer a range of benefits to cryptocurrency users. Here are some key advantages of using self-custody wallets:

1. **Control:** Self-custody wallets provide users with complete control over their digital assets. This is because the user holds the private keys necessary for accessing and managing their funds. With self-custody wallets, users do not have to rely on third-party service providers to manage and store their assets. This gives them the power to send, receive, and store their funds according to their own preferences and security measures.
2. **Security:** Self-custody wallets are generally considered to be more secure than custodial wallets. This is because the user has full control over their private keys and is responsible for their own security measures. By keeping their private keys safe and secure, users can protect their funds from hacks, scams, or other security breaches that can occur with custodial wallets.
3. **Privacy:** Self-custody wallets offer greater privacy to users by allowing them to transact anonymously and protect their personal information. Since the wallet is not connected to a central server, there is no need to share personal information with third-party providers. This protects users from unwanted surveillance, identity theft, and other privacy concerns.
4. **Flexibility:** Self-custody wallets like [Bitpowr](https://bitpowr.com/features/mpc-custody-wallet) can be used with a wider range of cryptocurrencies, giving users the flexibility to manage different digital assets in a single wallet. This means that users do not need to use multiple wallets to manage different cryptocurrencies, which can be inconvenient and time-consuming.
5. **Interoperability:** Self-custody wallets can connect to different blockchain networks and decentralized applications (DApps), allowing users to easily move their assets between different platforms. This means that users can participate in different blockchain ecosystems and take advantage of different DApps without having to move their funds to different wallets or exchanges.
6. **Openness**: Self-custody wallets are typically open-source and decentralized, which means that anyone can access and use them without the need for a central authority. This promotes greater transparency and inclusivity in the cryptocurrency industry, as anyone can participate in the development and improvement of the wallet.

### In Conclusion

As the FTX crash fueled the expansion of self-custody wallets in the cryptocurrency sector, it is important to note that these wallets provide users better autonomy, security, and privacy, making them an appealing option for institutions looking to manage their digital assets independently. As things unfold, Self-custody wallets will play an increasingly crucial role in the future of cryptocurrencies as demand for decentralized banking grows.

If you are looking for the safest and most reliable self-custody wallet for your business? Look no further than Bitpowr. Our cutting-edge MPC technology ensures next-level security and seamless digital asset management across multiple blockchains, all at an unbeatable price.

With Bitpowr, you can take your business to the next level by securely accepting crypto payments and getting paid instantly from anywhere in the world. Say goodbye to hefty transaction fees and appeal to a wider audience with the power of cryptocurrency.

And with our MPC wallet's multi-chain capabilities, you can store and manage all your digital assets in one convenient place. Don't settle for less when it comes to your business's financial security and growth. Choose Bitpowr today and experience the future of cryptocurrency. [Reach us here](https://bitpowr.com/contact-sales)

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The Rise of Self-Custody Wallets: Why Decentralization Matters?

Market capitalization (or market cap) refers to the total dollar market value of a company's outstanding shares of stock. For crypto markets, market capitalization is calculated by multiplying the number of coins mined by the price per coin. Think of market cap as a rough indicator of a certain asset's stability.

Even Bitcoin experiences volatility. Although cryptocurrencies with a much larger market cap have a greater chance of being a more stable investment than those with much smaller market caps. In contrast, digital currencies with smaller market caps are more prone to market fluctuations and can experience substantial gains as well as losses.

In some instances, you might see references to both "circulating supply" and "fully diluted supply" market caps. In the case of Bitcoin, you can use either the 18.5 million that have already been mined ("circulating supply") or the 21 million that will eventually be mined ("fully diluted supply"). Observers use different methodologies to calculate market cap: some will use the fully diluted number or the circulating supply.

### **What can you do with Market Cap?**

Market cap helps to compare the total value of one cryptocurrency with another for a more informed investment decision. Cryptocurrencies are divided into three categories based on their market capitalization:

**Large-cap cryptocurrencies** are generally regarded as safe crypto investments. These are companies with a market cap exceeding $10 billion. Coins with a large market capitalization are typically a conservative investment strategy. There is a likelihood that these coins will be less volatile than other cryptocurrencies, but still more volatile than traditional assets.

**Mid-cap cryptos** have higher volatility but also higher growth potential than large-cap cryptos.

**Small-cap cryptos** all have high volatility and are considered highly risky investments. ****They may, however, offer potential for short-term growth. It is also essential to keep in mind that they may crash at any moment.

It is always best to do thorough research before investing in cryptocurrencies and to consider all important factors.

### **Why is Market Capitalization important?**

Market capitalization is a metric that measures and monitors the market value of a cryptocurrency. A cryptocurrency's price is just one way to measure its value. Additionally, market capitalization can reveal trends. It provides a more comprehensive picture of cryptocurrency value, and it is used by investors to compare cryptocurrencies.

As a key statistic, it can indicate a cryptocurrency's growth potential and determine if it is safe to buy in comparison to others. Nevertheless, it is important to note that the market cap of many cryptocurrencies can fluctuate dramatically due to their volatility.

**Get in Touch**

Bitpowr integrates with several blockchains and supports multiple cryptocurrencies. What’s more? Our system provides price data that powers seamless digital asset trading for exchanges that integrate with us. [Come talk to us](https://bitpowr.com/contact-sales) to learn how we can power digital assets for your business.

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Understanding Market Capitalization?

The crypto world has exploded in recent years, with an increasing number of cryptocurrencies being created and traded every day. As a result, there's been a growing need for APIs that allow developers to integrate crypto functionality into their applications.

In this article, we'll go over what crypto APIs are, how they work, and why they're useful for developers. We'll also discuss some of the most popular crypto APIs currently available.

## What are Crypto APIs?

Crypto APIs (Application Programming Interfaces) are a set of protocols and tools that allow developers to interact with cryptocurrency services and build applications that use crypto functionality. They provide an easy-to-use interface for accessing crypto data and performing crypto-related tasks such as exchanging currencies, tracking prices, and managing transactions.

### How do Crypto APIs Work?

Crypto APIs use REST (Representational State Transfer) or web sockets to communicate with crypto services and retrieve information such as current prices, trading volumes, and historical data. The APIs are typically secured with an API key or token, which developers use to access the data and perform actions.

For example, a Developer might use a crypto API to retrieve the current price of Bitcoin and display it in their application. The developer would send a request to the API with the appropriate parameters, such as the currency they want to retrieve data for and the date range they're interested in. The API would then send back a response with the requested information.

### Why are Crypto APIs Useful for Developers?

Crypto APIs make it easier for developers to build applications that use crypto functionality. They provide a convenient way to access crypto data and perform crypto-related tasks without having to build and maintain their own infrastructure.

### Popular Crypto APIs

There are many crypto APIs available, ranging from simple data retrieval APIs to more complex APIs that provide advanced functionality. Here are some of the most popular crypto APIs:

- **Bitquery APIs:** [Bitquery](https://bitquery.io/) offers blockchain data APIs for over 40 different blockchains. These APIs are created with GraphQL technology. As a result, you can access data from multiple blockchains using a single GraphQL endpoint. You can also write GraphQL queries to get specific data based on your needs.
- **Binance API:** [Binance](https://binance-docs.github.io/apidocs/spot/en/#change-log) is one of the largest cryptocurrency exchanges, and its API provides access to real-time market data and trading functionality.
- **CoinAPI:**  [CoinAPI](https://www.coinapi.io/) is a service provider that specializes in providing price and market data. CoinAPI has a solid reputation in the market for high-quality crypto data, with over 20TB of raw market data in its database.
- **NOWNodes API:**  It provides full nodes and blockchain explorers for quick and easy access to popular blockchains. It is a blockchain-as-a-service solution that offers high-quality connectivity through an API.
- **Wyre API:** ****[Wyre](https://www.sendwyre.com/)** is a simple integrated payment solution for crypto startups looking to implement crypto as a payment method rather than traditional payment methods- fiat-to-crypto on-ramp.
- **Bitpowr API:** [Bitpowr](https://docs.bitpowr.com/reference/api-reference) Wallet Infrastructure API is a flexible and secure tool. It supports Multiple Blockchains like Bitcoin, Bitcoin Cash, Litecoin, Polygon, Solana, Tron, Stellar, and Ethereum, on its platform etc. Exchanges, crypto Wallets, Fintech, Hedge funds, and payment gateways can send, receive and manage cryptocurrencies fast and securely with the sub-accounts feature that is given to these organizations.

### Why use Crypto APIs in the first place?

- **It is time-saving:** Crypto APIs allow developers to save time by providing access to ready-made functionality, so they don't have to build it from scratch.
- **Cost-effective:** By using a crypto API, developers can reduce their costs as they don't have to build and maintain their own infrastructure.
- **Access to real-time data:** Many crypto APIs provide real-time data, allowing developers to build applications that display up-to-the-minute information on crypto prices and trading volumes.
- **Security:** Crypto APIs are typically secure and use encryption to protect sensitive information.

### Conclusion

Crypto APIs are an essential tool for developers who want to build applications that use crypto functionality. They provide a convenient way to access crypto data and perform crypto-related tasks, and they can help developers save time and reduce costs. With APIs like Bitpowr’s, it has never been easier for developers to integrate crypto into their applications. 

[Let us](https://bitpowr.com/contact-sales) hear from you and see how we can help you use [Bitpowr](https://docs.bitpowr.com/reference/api-reference) Wallet Infrastructure APIs to build your DApps in no time.

Discover crypto APIs that will make your work easier as a developer. 

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Crypto APIs for Developers

Digital asset businesses, such as cryptocurrency exchanges, token issuers, and even financial institutions that want to provide digital asset wallets and other services to their users, require a secure and reliable blockchain infrastructure provider to help manage their operations. But choosing the right provider can be a challenge, as there are many options to consider, each with its own set of features, advantages, and disadvantages.

In this article, we will outline some of the key factors that digital asset businesses and financial institutions should consider when selecting a blockchain infrastructure provider.

## Factors to Consider when Choosing a Blockchain Infrastructure Provider

**1. Security**

Security should be the top priority for digital asset businesses and financial institutions, as they hold and manage large amounts of valuable assets on behalf of their clients. The provider's security measures have to be extensive and reliable enough to prevent unauthorized access and other cyber threats. Common security features to look out for include multi-signature wallets, multi-party computation,  two-factor authentication, and encryption protocols.

The provider's security measures should also be regularly audited by reputable third-party security firms to ensure that they are effective and up-to-date.

**2. Scalability**

Another critical criterion is scalability. Digital asset businesses and financial institutions need to ensure that their blockchain infrastructure can handle large volumes of transactions and support the rapid growth of their client base.

As such, their choice blockchain infrastructure provider should have a proven track record of delivering high-performance, scalable solutions that can handle increased demand and should also have the ability to upgrade their infrastructure as needed to support future growth.

**3. Compliance**

Businesses offering blockchain-powered financial services have to comply with various regulations and laws, such as anti-money laundering (AML) and know-your-customer (KYC) requirements to avoid sanctions and fines.

Choosing a compliant blockchain infrastructure provider will also help financial institutions and digital asset businesses to build trust with their customers, investors, and regulatory bodies. With compliance in place, these organizations can demonstrate that they are committed to following regulatory requirements and best practices to prevent fraud and financial crime.

Going by the listed benefits above, a financial institution’s preferred blockchain infrastructure provider should have a strong understanding of these regulations and should be able to help their clients meet these requirements by providing the necessary tools and processes.

**4. Interoperability**

Digital asset businesses and Financial Institutions should consider blockchain infrastructure providers that support multiple blockchains and cryptocurrencies. This will enable them to expand their offerings and increase their flexibility in response to market demand.

The provider should have a deep understanding of different blockchain technologies and should be able to support the integration of new assets as needed.

**5. Customer support**

Businesses often require a great deal of support to kick off and continue their operations on the blockchain. This is why the provider's customer support should be responsive, knowledgeable and available to help resolve any technical or operational issues. The provider should also offer training and resources to help their clients get the most out of their blockchain infrastructure.

It’s important to consider this factor when making a decision because the quality of the provider's customer support can have a significant impact on the overall success of the digital asset business or financial institution.

**6. Cost**

Digital asset businesses and financial institutions should consider the costs associated with using the provider's services, including initial setup fees, monthly or annual fees, and any additional costs for premium services or support. The provider should be transparent about their pricing and should provide a detailed breakdown of all costs.

Digital asset businesses should also consider the long-term costs associated with using each solution, including any potential price increases or hidden fees.

**7. Reputation**

The blockchain sector is still maturing; as such many innovators and builders are still trying to figure out a lot of things. This is why it’s important for digital asset businesses and financial institutions to opt for only reputable and trusted blockchain infrastructure providers.

The choice provider should have a strong reputation in the industry and should be trusted by other businesses. If possible, the provider should have verifiable references and reviews from their clients that attest to their proficiency. This will give the digital asset business or financial institution a better understanding of the provider's strengths and weaknesses and help them make an informed decision.

The provider's involvement in the industry, such as attending conferences and events, and their reputation within the wider blockchain community, should also be taken into consideration.

## Wrapping Up

Choosing the right blockchain infrastructure provider is a critical decision for digital asset businesses and financial institutions. By carefully considering the factors outlined above, businesses can ensure that they select a provider that will help them operate securely and efficiently, and support their growth and success over the long term.

Bitpowr ticks all the outlined boxes. From offering a unified ecosystem of blockchain solutions at competitive prices to delivering wallet solutions protected by iron-clad security measures, we understand what digital asset businesses and financial institutions require to succeed on the blockchain. [Let’s chat about how we can help you today](https://bitpowr.com/contact-sales).

Here are some key things to know before choosing a  Blockchain provider for your financial Institution. 

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How to Choose the Right Blockchain Infrastructure Provider

At the core of the blockchain lies a set of rules that govern how transactions are executed and recorded on the network. These rules are known as blockchain protocols. In this article, we will explore what blockchain protocols are, how they work, and their significance in the blockchain ecosystem.

### **What is a Protocol?**

In the world of technology, a protocol is a set of rules that enable electronic devices to communicate and exchange data with each other. It forms the basis of software that powers a network, enabling it to function effectively. Protocols are not specific to blockchain technology; they exist in various forms and are used in different applications.

For example, the HTTP and HTTPS protocols are used to facilitate website communication on the Internet. Similarly, TCP/IP and DNS are other protocols that underpin Internet applications. Protocols play a crucial role in ensuring the smooth functioning of Internet applications.

### **What is a Blockchain Protocol?**

A blockchain protocol is a set of rules that govern how transactions are executed and recorded on a blockchain network. These protocols ensure that the network is secure, transparent, and tamper-proof. Cryptocurrencies such as Bitcoin and Ethereum rely on blockchain protocols to maintain the integrity of their transactions.

The Bitcoin protocol, for instance, specifies the rules that govern the Bitcoin network. It utilizes a peer-to-peer network that enables individuals to conduct financial transactions without the involvement of a trusted third party. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger, i.e., blockchain.

Similarly, the Ethereum protocol is based on smart contracts that automate transactions when certain parameters are met. Smart contracts enable participants to transact among themselves without the need for a trusted central authority.

### **How do Blockchain Protocols Work?**

Blockchain protocols work by enabling the creation of a distributed ledger that records all transactions made on the network. Each block on the blockchain contains a cryptographic hash of the previous block, creating an unbreakable chain of data. Once a transaction is recorded on the blockchain, it cannot be altered, ensuring that the integrity of the network is maintained.

Blockchain protocols utilize cryptography to secure transactions and ensure that only authorized parties can access the network. The protocols ensure that all transactions are validated by network nodes, and only those that meet the specified criteria are added to the blockchain. The protocols also specify the rewards given to miners who validate transactions on the network.

### **What are the Importance and Benefits of Blockchain Protocols?**

Blockchain protocols play a crucial role in the blockchain ecosystem by ensuring that the network is secure, transparent, and tamper-proof. They enable transactions to be conducted without the need for a trusted central authority, ensuring that the network is decentralized. Blockchain protocols also ensure that transactions are validated in a transparent and efficient manner, eliminating the potential for fraud and corruption.

The benefits of blockchain protocols include increased security, transparency, and efficiency. They enable faster transaction processing times, lower transaction fees, and enable the creation of new blockchain-powered applications.

### **Various Types of Protocols.**

1. **Proof of Work (PoW) Protocol:** This is the most common type of blockchain protocol. It involves miners competing to solve a complex mathematical problem, with the winner getting to add a new block to the blockchain and receiving a reward. Bitcoin is an example of a blockchain that uses the PoW protocol.
2. **Proof of Stake (PoS) Protocol:** Unlike PoW, the PoS protocol does not require miners to solve complex mathematical problems. Instead, the protocol assigns the right to add a new block to the blockchain based on the amount of cryptocurrency a miner holds. The more cryptocurrency a miner holds, the more likely they are to be selected to add a new block to the blockchain. Ethereum is an example of a blockchain that uses the PoS protocol.
3. **Delegated Proof of Stake (DPoS) Protocol:** This protocol is similar to PoS, but instead of assigning the right to add a new block based on the amount of cryptocurrency a miner holds, it assigns the right based on the number of votes the miner receives from other network participants. The more votes a miner has, the more likely they are to be selected to add a new block to the blockchain. EOS is an example of a blockchain that uses the DPoS protocol.
4. **Byzantine Fault Tolerance (BFT) Protocol:** This protocol is designed to allow blockchains to continue to function even in the presence of malicious nodes or nodes that are not functioning properly. BFT protocols work by ensuring that all nodes in the network agree on the order of transactions and blocks added to the blockchain. Hyperledger Fabric is an example of a blockchain that uses the BFT protocol.
5. **Directed Acyclic Graph (DAG) Protocol:** This protocol is designed to enable high transaction throughput and scalability. Instead of using blocks, DAG-based blockchains use a graph structure to store and confirm transactions. Transactions are confirmed by other transactions in the graph, allowing for high transaction throughput. IOTA is an example of a blockchain that uses the DAG protocol.
6. **Hybrid Protocol:** Some blockchains use a hybrid protocol, which combines features of multiple protocols. For example, the Ripple blockchain uses a hybrid protocol that combines elements of PoW and BFT protocols.

Several other protocols have emerged, with some running on the Ethereum blockchain. These new protocols have paved the way for the development of blockchain-powered financial services. At Bitpowr, we’ve created a modular and unified ecosystem of several blockchain protocols that businesses can instantly integrate with to launch and run their blockchain-enabled financial services. [Come talk to us.](https://bitpowr.com/contact-sales)

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Resources and insights

Blockchain Protocols

Are Digital Assets Securities or Commodities? Understanding the Coinbase and the SEC Case

Bitpowr & Vella Finance

Understanding the Reasons for the Recent Surge in Bitcoin Transaction Fees

Neobanks: A Catalysts for Global Financial Transformation.

Blockchain layers L0, L1, L2, L3

AI and Blockchain: Are There Possible Synergies?

Introducing Bitpowr Transaction Validation Layer

Bitpowr's 500 Global Accelerator Experience

The Rise of Self-Custody Wallets: Why Decentralization Matters?

Understanding Market Capitalization?

Crypto APIs for Developers

How to Choose the Right Blockchain Infrastructure Provider

Blockchain Protocols

Are Digital Assets Securities or Commodities? Understanding the Coinbase and the SEC Case

Bitpowr & Vella Finance

Understanding the Reasons for the Recent Surge in Bitcoin Transaction Fees

Neobanks: A Catalysts for Global Financial Transformation.

Blockchain layers L0, L1, L2, L3

AI and Blockchain: Are There Possible Synergies?

Introducing Bitpowr Transaction Validation Layer

Bitpowr's 500 Global Accelerator Experience

The Rise of Self-Custody Wallets: Why Decentralization Matters?

Understanding Market Capitalization?

Crypto APIs for Developers

How to Choose the Right Blockchain Infrastructure Provider

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