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Tokenization of real-world assets (RWAs) is rapidly gaining momentum, with industry projections estimating that the market will reach a staggering $50 billion in value this year. This transformative process involves representing tangible assets such as bonds, real estate, and private credit as digital tokens on a blockchain. By digitizing assets that have historically faced liquidity challenges, tokenization enables more efficient trading, fractionalized ownership, automated compliance, and 24/7 market access.

Being one of the most compelling applications of blockchain technology, tokenization is reshaping the way assets are owned, traded, and monetized. By converting physical, digital, and data-driven assets into blockchain-based tokens, this process unlocks innovative opportunities for ownership transfer, revenue sharing, and liquidity enhancement. Assets that were once illiquid or difficult to trade—such as art, collectibles, real estate, stocks, commodities, and even personal data—can now be seamlessly represented and exchanged on-chain.

This groundbreaking shift is not just a technological advancement; it represents a fundamental reimagining of traditional financial markets. Tokenization bridges the gap between the physical and digital realms, creating new possibilities for asset management, investment, and global market participation. 

### What Are Real-World Assets (RWAs) in Crypto?

Real-World Assets (RWAs) encompass a broad category of assets that derive their value from existing outside the blockchain. These can include physical assets like real estate and precious metals, financial assets such as stocks and bonds, and even intangible assets like intellectual property or digital content rights. Through tokenization, these assets are transformed into digital representations on the blockchain, enabling fractional ownership, enhanced liquidity, and global accessibility.

Stablecoins, which are backed by fiat currencies like the US dollar or euro, were the first major example of RWAs in the crypto space. However, the potential of tokenization extends far beyond stablecoins, covering a diverse range of asset classes:

- **Financial Assets**: Stocks, securities, insurance, treasuries, equities, and indices.
- **Physical Assets**: Real estate, precious metals, raw materials, agricultural products, and intellectual property like artwork and music licensing.
- **Digital Assets**: Data sets, intellectual property, and digital content rights.

### Pioneers in RWA Tokenization

Several platforms are actively contributing to the advancement of RWA tokenization, each addressing different aspects of the ecosystem with their unique approaches. Below are a few examples of projects involved in this space:

**Ondo Finance: Bringing Traditional Securities Onchain**

Ondo Finance is tackling the challenge of bringing traditional US securities, including stocks, bonds, and exchange-traded funds (ETFs), onchain. With its initiative, Ondo Global Markets (Ondo GM), the platform aims to address inefficiencies in traditional financial markets, such as high fees, limited access, and fragmentation. By utilizing blockchain technology, Ondo GM seeks to democratize access to financial markets, enabling the creation of transferable tokens backed 1:1 by major securities like those listed on the NYSE and Nasdaq. This includes exposure to over 1,000 securities, including companies like Apple and Tesla, and fixed-income ETFs. Ondo GM's vision is to make financial markets as accessible and transparent as stablecoins have made the US dollar.

**Chainlink: Enabling Secure and Interoperable RWA Tokenization**

Chainlink plays a pivotal role in the RWA tokenization space by offering a decentralized platform that connects real-world data to blockchain environments. For RWAs to fulfill their potential, they need the ability to integrate real-world information, transfer assets securely across blockchains, and access off-chain data. Chainlink addresses these needs through its robust infrastructure, providing the necessary support for financial institutions and capital markets to confidently leverage tokenized assets.

**Ozean: Revolutionizing DeFi with RWAs**

Ozean, launched by Clearpool, is making significant strides in decentralized finance (DeFi) by integrating RWAs into its ecosystem. Built on an Ethereum Layer 2 blockchain, Ozean allows users to earn native yield on-chain automatically while ensuring compliance with an optional layer. This compliance feature fosters interoperability among permissioned protocols, allowing RWAs to be traded or used as collateral seamlessly. Since its inception in March 2022, Clearpool has facilitated over $650 million in loans, attracting both crypto and traditional finance (TradFi) institutions like Wintermute, Jane Street, and CoinShares.

The recent partnership between Ozean and WELF further broadens its reach, particularly in areas like real estate, private credit, cross-border payments, and invoice financing, cementing Ozean's leadership in RWA tokenization.

### The Future of RWA Tokenization

RWA tokenization has the potential to reshape the global financial system by making it easier to trade assets, increasing transparency, and opening up markets that were previously hard to access. This technology helps connect traditional finance with the digital economy, offering new opportunities for more inclusive and efficient financial systems. As platforms like Ozean, Chainlink, and Ondo Finance continue to develop, RWA tokenization may gain wider adoption, leading to changes across various industries.

By turning physical and financial assets into digital tokens, blockchain technology could break down barriers and create new ways to invest and manage value. As the industry grows, integrating RWAs into decentralized systems may unlock more opportunities, influencing the future of finance and other sectors.

However, challenges remain. Regulatory uncertainty, scalability, security, and interoperability are among the key issues that need attention for broader adoption. Additionally, investing in crypto and tokenized assets carries significant risks, including market volatility and the potential for unforeseen technical or regulatory hurdles. While the future of RWA tokenization is promising, it’s crucial to approach it cautiously and conduct thorough research. Balancing optimism with awareness of the risks is key to navigating this evolving space.

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Revolutionizing Asset Ownership in the Digital Age

RWA Tokenization

The Web3 landscape is evolving fast, turning once-complicated blockchain interactions into smooth, user-friendly experiences. As UX barriers fade, blockchain is no longer just for tech-savvy users—mainstream adoption is finally coming into focus, making crypto more accessible to everyone.

Meet [Abstract](https://www.abs.xyz/), a next-generation Layer-2 solution designed to make crypto as simple and intuitive as any Web2 app. Gone are the days of managing complex seed phrases and private keys. With Abstract, users can log in with familiar credentials, like a Google account, and start using crypto instantly.

This is just the beginning of a new era in blockchain, where crypto is no longer a niche technology but a mainstream tool for everyday users. Curious about how it works? Keep reading to find out how Abstract Blockchain is making this shift possible.

### What is Abstract Blockchain?

Abstract is a next-generation Layer-2 blockchain built on Ethereum by Igloo Inc., the parent company of Pudgy Penguins. Leveraging advanced ZK-rollup technology—powered by the zkSync ZK Stack and EigenDA—Abstract delivers a secure, scalable, and cost-efficient platform tailored for consumer-focused applications.

Designed with specific use cases in mind, Abstract prioritizes industries like gaming and social platforms, providing tailored solutions that solve common blockchain challenges like high fees and slow transactions. This approach ensures that both developers and users benefit from a more efficient and accessible experience.

With its modular architecture, Abstract is poised to expand into areas like decentralized finance (DeFi) and banking, positioning itself as a catalyst for mass adoption of Web3 technologies.

### Key Features of Abstract

Abstract introduces two key innovations that redefine blockchain usability and governance:

1. **Chain Abstraction via the Abstract Global Wallet**

Managing assets across multiple blockchains has traditionally been a complex process, requiring different wallets, private keys, and manual transfers. Abstract’s Global Wallet eliminates these barriers, allowing users to seamlessly manage assets and interact with applications across multiple chains from a single interface. Whether for gaming, DeFi, or social platforms, this frictionless experience makes Web3 navigation as intuitive as any Web2 app.

2. **Panoramic Governance**

Abstract’s Panoramic Governance model transforms community-driven decision-making by ensuring broad stakeholder participation. Unlike traditional governance structures that centralize power, this system enables developers, users, and investors to shape the platform’s future through decentralized voting. As Abstract expands into DeFi and banking, Panoramic Governance will be essential in maintaining transparency, trust, and continuous innovation.

These innovations reflect Abstract’s commitment to making blockchain technology more accessible, user-friendly, and community-driven, paving the way for broader adoption of Web3 applications.

### The Abstract Ecosystem

Abstract’s ecosystem is rapidly expanding, with a diverse range of applications and protocols preparing to launch on its mainnet. From gaming to social platforms and infrastructure, Abstract is attracting projects that push the boundaries of Web3 innovation.

**Gaming**

Abstract is emerging as a hub for next-generation gaming experiences. Early adopters include Prospect Sports, a fantasy sports platform; WITS TCG, a revolutionary trading card game that combines NFC technology with digital counterparts; Duper, a strategy game blending poker and Catan mechanics; and Onchain Heroes, an idle RPG—all leveraging Abstract’s scalable infrastructure for seamless gameplay.

**Social, IP, and NFTs**

Social and NFT-driven projects are also joining the ecosystem. Multiplier.fun reinvents classic casino games with a Web3 twist, while NFT ventures like Canna Sapiens introduce new digital collectibles. Other unique applications include Swipe, a Tinder-style prediction market, and Zoo.fun, a token launchpad fostering innovative crypto projects.

**Infrastructure**

Abstract is integrating with established Web3 tools to provide a solid foundation for developers and users. Magic Eden enables NFT trading, Dune Analytics offers blockchain insights, and LayerZero facilitates seamless cross-chain interoperability, ensuring that Abstract remains at the forefront of Web3 infrastructure.

With its expanding ecosystem, Abstract is shaping a more connected and user-friendly blockchain experience, bridging the gap between Web3 applications and mainstream adoption.

### Why Abstract Matters

Abstract aims to bridge the gap between advanced Layer-2 solutions and mainstream adoption. By prioritizing user-centric design, cross-chain functionality, and developer-friendly tools, Abstract is positioning itself as a leader in the next wave of accessible blockchain applications. Its focus on simplifying core processes—such as asset transfers and governance—makes it a compelling choice for both developers and end-users.

The success of Pudgy Penguins, a flagship NFT project by Abstract’s parent company, serves as a testament to the team’s ability to drive consumer-focused innovation in Web3. This track record has instilled confidence in the crypto community, with many projects already migrating to or building on Abstract.

### What’s Next?

Abstract’s roadmap includes the Builder-in-Residence Program, an incubator initiative designed to support developers in creating the next generation of consumer crypto applications. With a growing list of partners and a clear vision for the future, Abstract is poised to make a significant impact on the blockchain space.

Abstract Blockchain represents a bold step forward in making blockchain technology more accessible, secure, and scalable. By focusing on real-world use cases and user experience, it has the potential to drive the next wave of Web3 adoption.

This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before engaging with any cryptocurrency or protocol.

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Bringing Consumer Crypto to the Mainstream

Abstract Blockchain

Sony, a global leader in technology and entertainment, is now expanding into the Web3 space. Its Singapore-based subsidiary, Sony Block Solutions Labs, is developing Soneium, an Ethereum Layer-2 blockchain that is designed to bridge the gap between Web2 and Web3, making decentralized technology more accessible and user-friendly. By leveraging Sony’s vast global network of technology, entertainment, and media partnerships, along with launching new initiatives, Soneium aims to drive mainstream adoption and help everyday users easily transition into decentralized tech without hurdles.
### History
Sony’s venture into blockchain officially began in September 2023 when Sony Network Communications and Startale Labs formed a joint venture, establishing Sony Network Communications Labs, with the goal of developing a blockchain that could serve as the foundation for a global Web3 infrastructure. By pooling their combined expertise and leveraging a wide network of partners, they aimed to unlock the full potential of blockchain technology to drive broader adoption and lay the groundwork for decentralized solutions to become mainstream.

By August 2024, the company had rebranded from Sony Network Communications Labs to Sony Block Solutions Labs, signaling its renewed focus on blockchain development. Later that month, the launch of Soneium was officially announced. Positioned as a key player in the Web3 ecosystem, Soneium seeks to bring Web3 use cases into everyday life, advancing the venture’s mission to make decentralized technologies easily accessible to all.
### Technical Foundation
Soneium is a public blockchain designed for open participation, leveraging Ethereum’s layer 1 infrastructure to provide faster and more affordable transactions. By building on the OP Stack and Superchain from Optimism, Soneium offers a scalable and EVM-compatible network tailored for developers. Its fully-featured testnet mimics mainnet conditions, enabling thorough testing of projects. The platform supports advanced smart contracts and is built to handle high-volume applications, offering scalability without limits. Additionally, Soneium has a cross-chain bridge, facilitating interoperability, and currently boasts 123 projects within its ecosystem, spanning DeFi, NFTs, and gaming.
### Soneium Spark
In addition to leveraging Sony's global network and Startale's blockchain expertise, the team behind Soneium launched the Soneium Spark Incubation Program ("Soneium Spark") to foster a community of creators and builders shaping the future of decentralized technology. The program aims to support innovation and help projects that can drive long-term growth within the Soneium ecosystem. By offering a space for developers and innovators to succeed, Soneium Spark focuses on sustainable growth in areas like decentralized finance (DeFi), gaming, and entertainment.

Soneium Spark invites submissions in categories such as DeFi (including decentralized exchanges, lending, stablecoins, and derivatives) and Web3 Experiences (spanning NFT, gaming, social, and entertainment). The program’s goal is to spark innovative solutions that contribute to a healthy, thriving ecosystem for Soneium. After an orientation week held from September 10-14, 2024, applications were closed on September 30. The selected winners were announced on October 14, 2024, and will showcase their projects on Demo Day, scheduled for November 15, 2024.

The winners of the Soneium Spark program will receive tailored marketing, technical, and business support, depending on whether they earn Gold or Silver awards. This support will be provided at the discretion of Sony Block Solutions Labs (SBSL), ensuring that the projects have the tools and guidance needed to scale and succeed. Through Soneium Spark, the team aims to build a robust ecosystem of innovation that will lead the way for mainstream Web3 adoption.
### The Road Ahead
As Soneium develops, its ambition is to position itself as a significant player in the Web3 landscape by integrating blockchain technology into everyday life. With its foundation built on Ethereum and Optimism, and initiatives like Soneium Spark encouraging innovation, the platform has the potential to drive broader adoption of decentralized technologies.

However, as with any emerging technology, the path ahead is not without its challenges. While Soneium is well-equipped to support a growing ecosystem, it remains to be seen how effectively it can meet the demands of scalability, security, and usability as the Web3 space continues to evolve. Success will depend on its ability to deliver on its promises and to adapt to the fast-changing blockchain environment.

Looking forward, Soneium aims to attract more projects and developers while contributing to the broader adoption of Web3 technologies. With its focus on innovation, scalability, and ease of use, it is well-positioned to play a pivotal role in shaping the future of decentralized solutions. Soneium's commitment to fostering a thriving ecosystem and addressing real-world challenges offers a promising path toward long-term success.


Soneium

A subtle yet significant revolution is transforming the way new users are onboarded in crypto, all without drawing much attention. About a year ago, FSL introduced keyless wallets in StepN and GasHero, and today, they are being implemented widely across the industry.

Keyless wallets are crypto wallets that eliminate the need for seed phrases. They utilize multi-party computation (MPC) technology to secure private keys, distributing security across multiple parties rather than relying on a single key. This approach simplifies the user experience, allowing individuals to manage their assets without the worry of forgetting seed phrases.

A key feature of keyless wallets is their use of advanced cryptographic techniques, such as threshold signature schemes (TSS). This method ensures that no single complete key is solely responsible for securing assets. Instead, multiple key shares collaborate to authorize transactions only when necessary, offering a practical solution that balances security and usability.

### Security Concerns with Keyless Wallets

Although keyless wallets offer enhanced usability and protection through advanced cryptographic techniques, they are still not as secure as cold storage options. Cold storage, which involves keeping private keys offline and requires a seed phrase for access, remains the gold standard for safeguarding large amounts of cryptocurrency. By being completely disconnected from the internet, cold wallets are immune to hacking attempts, phishing attacks, and other online threats.

Keyless wallets, on the other hand, are considered "hot" wallets, meaning they are connected to the internet, similar to the already known custodial wallets. While the multi-party computation (MPC) technology distributes private key security across multiple parties, the fact that key shares are still accessible online introduces a level of vulnerability. Even with the added protection of threshold signature schemes (TSS), keyless wallets cannot completely eliminate the risks associated with being online.

### So Why Choose Keyless Wallets?

While keyless wallets may not match the security of cold storage for long-term asset protection, they offer clear advantages for everyday use. Their primary strength lies in convenience and accessibility. By eliminating the need for seed phrases, keyless wallets simplify the onboarding process for new users, reducing the friction often associated with managing crypto assets.

For most users, especially those handling smaller amounts of cryptocurrency or engaging in frequent transactions, keyless wallets strike a balance between security and ease of use. The distributed security of multi-party computation (MPC) and the advanced cryptographic methods employed ensure that even though they are connected to the internet, they remain a safer option than many other "hot" wallet alternatives.

Also, this solution fundamentally addresses one of the most significant user challenges in the crypto space: the inability to recover a private key if it is lost. In traditional wallet systems, losing access to a private key or seed phrase often leads to a permanent loss of funds. However, keyless wallets mitigate this risk by distributing ownership of the private key among multiple parties. This means that even if one key share is lost or compromised, the remaining shares maintain the security of the assets, allowing for recovery options that were previously unavailable.

### Summing Up

Choosing the right cryptocurrency wallet is crucial for achieving a balance between security and convenience. Cold wallets provide maximum security by keeping private keys offline and utilizing a seed phrase, but they can be difficult to use and may complicate transactions. In contrast, traditional custodial wallets simplify access to funds by managing private keys on behalf of the user, though they may not offer the same level of control and security. For those seeking a middle ground between security and ease of use, keyless wallets are an excellent choice. They employ multi-party computation to distribute security risks and enable recovery options without the complexity of traditional seed phrases, effectively combining safety with user-friendliness.

Will this new approach drive a wave of mass adoption? It likely won’t do it alone. While keyless wallets significantly enhance user-friendliness — one of the key trends in crypto in recent years — other areas of the industry are also adopting these principles. Together, these efforts are already making cryptocurrency more accessible to a wider audience.

Keyless Wallets

**Quick Take:**

- Polygon transitioned from the MATIC token to POL, marking a major milestone in its 2.0 roadmap.
- POL enhances fee generation with data availability and decentralized sequencing, features a 2% annual emission rate, and is set to play a central role in Polygon's expanded ecosystem.
- Polygon 2.0 aims to create an interconnected ecosystem of multiple chains with a single bridge, facilitating seamless interoperability.
- The AggLayer is designed to unify Layer 1 and Layer 2 chains, simplify cross-chain transactions, and bring uniform cryptographic security.

On September 4, 2024, following a year of community-driven discussions and consensus, Polygon successfully transitioned from its original MATIC token to POL, now the native token of its network. This migration represents a pivotal step in the Polygon 2.0 roadmap, which aims to transform Polygon into a unified, interconnected ecosystem.

Beyond upgrading the native token for the Polygon PoS network, the shift to POL will expand its utility in future phases, powering Polygon’s vision of an ever-growing network of aggregated blockchains and enhancing scalability across the entire ecosystem.

Today, let's dive into the details of the MATIC to POL migration and explore Polygon's broader vision for its future as a multi-chain network.

### What is POL and Its Key Features

The upgraded POL token introduces new features and a "hyperproductive" system as described by CEO Marc Boiron. Unlike its predecessor MATIC, which mainly earned fees from gas and staking, POL expands fee generation opportunities by incorporating methods like ensuring data availability and decentralizing sequencing.

POL also presents a new emission model with a 2% annual rate, distributed between validators and the community treasury. Validators will benefit from consistent rewards to encourage network participation, while the treasury will support growth initiatives, such as grants, to broaden the ecosystem. This model overcomes a limitation of MATIC, which was constrained by the burning of update keys. POL offers enhanced control over token usage and future development.

As POL progresses, it will be integrated into the broader Polygon ecosystem, strengthening the security of chains within the Polygon aggregated network, known as the AggLayer. The AggLayer aims to create a unified network of chains, facilitating fast and secure cross-chain transactions. With Polygon 2.0's evolution, POL is expected to play a key role in connecting various chains and supporting the network's expansion.

### Current State Of The Migration

In just over a week, more than 7 billion tokens have successfully migrated to POL, accounting for over 70% of the total supply. The market cap of POL has quickly surpassed $2.64 billion, with daily migrations ranging from 5 million to 5 billion tokens. Meanwhile, over 3.2 billion MATIC tokens remain in circulation, holding a market cap of just over $1.21 billion at the time of writing. This rapid migration reflects the community's confidence in the transition and the growing momentum behind POL as the new native token.

### The AggLayer

Earlier, we introduced the concept of the AggLayer, and now it's time to explore it more deeply. The Aggregation Layer (AggLayer) is a key component of the Polygon 2.0 vision that addresses blockchain fragmentation by providing a decentralized protocol acting as a unified bridge for interoperable Layer 1 and Layer 2 chains. It allows sovereign chains to securely share liquidity, users, and state, aiming to create a seamless experience across multiple chains as if interacting with a single one. This approach has the potential to significantly enhance the user experience.

As Polygon envisions it, “In its endstate, the AggLayer will provide a common language for secure, atomic interoperability among heterogeneous chains.” In this context, "atomic" refers to transactions that must be fully completed across all chains or canceled entirely, ensuring security and consistency. This guarantees that users won’t experience partial failures or incomplete transactions when moving assets or data across chains, reinforcing the reliability of cross-chain interactions.

### How It Works

In most multichain Layer 2 ecosystems, transferring assets between chains typically involves multiple bridges connecting each chain to Ethereum. From Ethereum’s perspective, each rollup is essentially a smart contract containing a state root and a verifier to monitor assets. To move assets between chains without third-party bridging services, users often have to withdraw to Ethereum, which can lead to delays — especially on optimistic chains, where a withdrawal could take up to seven days.

The AggLayer aims to change this by using a single bridge contract on Ethereum for all connected chains. Instead of multiple bridges, Ethereum interacts with just one contract, while each chain keeps a local copy of the bridge root. This allows for faster cross-chain transactions without needing to withdraw to Ethereum, making the process simpler and reducing the security risks of using third-party bridges. Additionally, the AggLayer includes a bridgeAndCall() library that lets developers not only transfer assets but also trigger actions on other chains once the assets arrive, streamlining cross-chain interactions for users.

Another crucial element of the AggLayer is its use of Zero Knowledge (ZK) technology. At its core, the AggLayer aggregates ZK proofs from all connected chains, ensuring the security of cross-chain transactions. By leveraging the cryptographic strength of ZK proofs, the AggLayer allows chains within the network to maintain their sovereignty and modularity, all while offering the seamless user experience typically associated with monolithic chains. This combination of decentralization and interoperability sets the foundation for a secure and efficient multi-chain ecosystem.

### Understanding Aggregated Blockchains

Polygon describes Aggregated blockchains as a crucial evolution in blockchain design, moving beyond the limitations of monolithic and modular chains. Initially, monolithic chains handled all aspects of consensus, data availability, and execution within a single ecosystem. While these integrated systems offered unified interoperability, they faced significant limitations. As they scaled, validators required more hardware, leading to centralization and reduced security. Performance issues like state bloat and contention also arose. Moreover, these chains lacked flexibility and customizability for participants.

In response, modular architectures were developed to allow multiple chains to operate independently and in parallel, each maintaining its own sovereignty. This approach improved scalability and design flexibility. However, it also led to fragmented liquidity and user bases, creating inefficiencies in bridging or compromising chain sovereignty.

Aggregation aims to resolve these challenges by merging the advantages of modular architectures — sovereignty and scalability — with the unified liquidity and user experience of monolithic systems. This synthesis creates a more cohesive and efficient multi-chain environment.

### Summing Up

The transition from MATIC to POL marks a significant advancement for Polygon’s network, enhancing both functionality and scalability. Central to Polygon 2.0, the AggLayer addresses blockchain fragmentation by facilitating seamless interoperability among Layer 1 and Layer 2 chains. By overcoming the limitations of both monolithic and modular designs, Aggregation combines the benefits of each, creating a unified and efficient multi-chain ecosystem. This evolution has the potential to not only improve the user experience but also position Polygon for future growth and innovation.

However, while POL’s increased functionality and new emission model offer substantial benefits, it is important to consider potential trade-offs. The expanded capabilities of POL may grant the Polygon team greater control compared to the previous system where keys were burned. Additionally, as the modular architecture is still in its early stages, only time will reveal how effectively the Aggregated approach will integrate and perform in practice. The ongoing evolution of the ecosystem will depend on balancing innovation with core blockchain principles.

Overall, Polygon’s shift towards a more interconnected and scalable framework represents a bold step forward. The coming months and years will be crucial in assessing the real-world impacts of these changes and the effectiveness of the Aggregation model in shaping the future of multi-chain networks.

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How the MATIC to POL Shift and the AggLayer Are Shaping the Future

Polygon 2.0

Ever wondered how new improvements make their way into Ethereum? Today, let’s dive into how proposals are made, discussed, and eventually become part of the Ethereum ecosystem — everything you need to know, all in one place.


### So, How Does Ethereum Evolve?

Ethereum’s development process is modeled after Bitcoin’s. While Bitcoin uses BIPs (Bitcoin Improvement Proposals), Ethereum has EIPs (Ethereum Improvement Proposals). These documents outline proposed enhancements to the network, reflecting Satoshi Nakamoto’s influence.

Here’s how it works: If you want to propose an improvement to Ethereum, you go to the dedicated forum at ethresear.ch and write a blog post outlining your idea. Anyone can submit a proposal — there are no restrictions, and no formal format is required. Generally, these proposals come from researchers within the Ethereum community or development teams.

Once a post is up, it’s discussed by the researcher community. They first tackle a crucial question: Should this proposal be integrated into the Ethereum protocol, or is it better suited as a separate product? Most proposals end up as products. If you browse the forum, you’ll find a wealth of innovative ideas for decentralized technologies — ideas that can be developed into new products. Many leading crypto technologies have been discussed here.

If developers decide a proposal could be integrated at the protocol level, someone steps up to draft a document describing the technology — this is the EIP. The EIP must explain what the proposal is, why it’s needed, and how it will improve the network. Technically, it’s a document in a GitHub repository. If no volunteer emerges to create the document, the idea remains on the forum, waiting for attention.

There are now over 8,000 EIPs in total.

### The EIP Discussion and Prototyping Process

Next comes the EIP discussion on the forum. If the community isn’t interested, the proposal might be set aside and forgotten. But if an EIP sparks interest, a developer or team might jump in and say, “We’ll build a prototype!”

The funnel from EIP to EIP with a prototype is roughly 1:10. That means out of 8,000 ideas, about 800 are developed into prototypes of reasonable quality. Often, these prototypes are created by developers from various teams within the Ethereum ecosystem since there’s no direct payment for developing an EIP prototype — it’s a purely non-commercial effort. Occasionally, if an EIP is especially compelling, it might receive a grant, though that’s more of an exception.

If the prototype is completed and the community approves it, the proposal can move forward to implementation. This means the EIP discussions enter the call with All Core Devs. All Core Devs is an assembly of, usually, one developer per Core Dev team of the Ethereum ecosystem. The number ranges at times, but generally, it’s about 10-20 teams that work on the key Ethereum tech.

The goal of these All Core Devs calls is to decide what should be implemented into the network’s protocol next. This should be a conclusive decision, meaning that they should reach a consensus.

### From Ideas to Hard Forks

Ethereum devs gather all the ideas that accumulate over time in EIPs into a massive roadmap, which is often demonstrated by Vitalik Buterin. In this Ethereum Roadmap, there are different directions and work blocks, but under each block, there’s one or more EIP — those very ideas from the forum (Vitalik could write those ideas too).

The All Core Devs team spends a lot of time discussing and gathering EIPs during their calls. These EIPs are then grouped into a package, referred to as a Hard Fork. This list is public, so anyone can view, discuss, and review it. So, the next time you read in a reputable financial publication or hear from Bitcoin maximalists that Vitalik changes Ethereum on a whim, you can argue that it's actually a decision made by the All Core Devs assembly.

Naturally, when deciding which EIPs make it into a Hard Fork, disputes arise. Each team wants their EIP included in the next fork, and it's not uncommon for frustrations to surface when a proposal gets sidelined. There have been instances in Ethereum's history where the All Core Devs didn’t assemble simply because they thought, "What's the point? We'll just end up arguing." So, if there hasn’t been a hard fork in a while, it likely means consensus hasn't been reached.

Researchers often pack as many prototypes into a fork as they can. They didn’t develop all these ideas just to let them sit idle, right? Once the prototypes are in, the All Core Devs teams have to sift through them and narrow down the EIPs. After all, they’re the ones who’ll be responsible for making everything work. Running a network with over a million users involves more than just drafting documents and brainstorming ideas.

### Development and Implementation

To develop complex EIPs, Ethereum conducts offsites, usually once a year. These are internal events where core developers gather for a week or two in a hackathon format to code all the ideas needed. They work on coding, discussing well-thought-out ideas that need a bit more development, and fixing bugs.

There could also be separate themed calls focused on complex or large EIPs. Note that not all core developers know every aspect of Ethereum; that’s likely only Vitalik. Each developer typically has their own area of specialization.

Once it’s decided which EIPs will be included in a fork, the Core Devs team and prototype developers start the implementation into production code. There’s a funnel here — not all planned EIPs can be completed within schedule. In fact, only a small number make it into the hard fork on time and with production-ready quality.

### EIP Politics

And what about politics? If you want the Ethereum community to focus on your specific EIP, you'll need to lobby for it. That’s why many EIPs have their own websites, communities, and thought leaders pushing them on Twitter. It’s hard to say if this strategy works, but anyone can give it a shot.

Some EIPs, by the way, become the very tokens you create, buy, and sell — like the current ERC20 (fungible tokens, similar to currencies), ERC721, and ERC1155 (tokens for unique assets). So, out of over 8,000 ideas, only three have become global token standards. Right now, the community is working on creating economic tokens, dividend tokens, revenue-sharing tokens, and other protocols that distribute money. When developers solve this problem at the standard level, it could significantly improve all our lives.

The most promising innovations for mass adoption — Ethereum wallet accounts linked to regular Web2 email addresses and the Account Abstraction technology — are the standards ERC 4337 and ERC 7579.

### Summing Up

In essence, the foundation of many cutting-edge fintech developments worldwide can be traced back to specific ideas within the Ethereum ecosystem. These ideas are meticulously documented through Ethereum Improvement Proposals (EIPs), each representing a potential advancement for the network. The significance of EIPs goes beyond the written proposals; they are part of a broader, collaborative process where the community actively participates in shaping the future of Ethereum.

Interestingly, the discussions that lead to these innovations are often public. Platforms like YouTube host real-time debates where developers dissect and deliberate over various EIPs, offering transparency and insight into the decision-making processes that drive Ethereum forward.

This collaborative and decentralized approach explains why Ethereum remains a top network in the blockchain space. 

**This text is a free rewrite of a pitch about Ethereum development from one of its developers.*

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Ethereum Improvement Proposals

**Teleports Are Real: TON Teleport BTC Unveiled**

The Open Network (TON) Foundation, which manages the Telegram-centric blockchain network TON, has announced new infrastructure aimed at enhancing Bitcoin utility on the platform.

This new infrastructure, known as TON Teleport BTC, facilitates transfers between Bitcoin and TON. Its goal is to expand Bitcoin's use cases within the TON ecosystem, particularly for decentralized exchanges, lending protocols, and other DeFi applications.

**Functionality**

TON Teleport BTC facilitates the transfer of Bitcoin between the Bitcoin blockchain and TON without relying on central intermediaries. The system is designed to be trustless, enhancing security and autonomy. Here's a breakdown of how it works:

- Users send their BTC to a unique Bitcoin address.
- Once the Bitcoin transaction is confirmed, an equivalent amount of BTC is issued to the user’s address on the TON Blockchain.
- Users can then utilize these BTC tokens in various decentralized applications (dApps) on TON or redeem them for BTC on the Bitcoin network.
- For the reverse process, users burn their BTC tokens on TON, which triggers the release and return of their BTC on the Bitcoin blockchain.

**Benefits**

TON Teleport BTC will significantly enhance the DeFi integration within the TON Blockchain. By enabling new Bitcoin-based financial mechanisms and products, such as decentralized exchanges (DEXs), lending platforms, and advanced wallet services, Bitcoin will be transformed from a mere stored asset on TON into a tool for generating additional returns. 

This integration sets a precedent for future systems that could link TON with other EVM-compatible networks, demonstrating the potential for wider blockchain connectivity.

**Impact**

When implemented, TON Teleport BTC will be a major technical achievement, contributing to a more connected and efficient global blockchain ecosystem. It offers a decentralized, secure, and transparent method to integrate Bitcoin into the TON Ecosystem without centralized intermediaries, ensuring there is no censorship or control over asset flow. 

TON Teleport BTC is not just a technological advancement; it's a vital step toward realizing a more connected and innovative Web3 environment. By bridging Bitcoin to TON in a trustless manner, the project paves the way for a new era of connectivity and innovation within the blockchain space. This exciting development promises to push the boundaries of what’s possible in the decentralized world, offering transparency and autonomy for all users.


ब्लॉकचेन	22
DEXes	798
पूल	44,12,591
टोकन	30,67,469
फार्म	4,779
NFTs	जल्द ही...

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