Staking As A Service Canada Crypto Regulations - Ep. 62

Everything to Know About Staking, Staking As A Service, and Canada Crypto Regulations: Podcast Ep. 62

Public Key Podcast Deliver Episode 62! As the situation of cryptocurrency regulation is overheating in the United States, we focus on Canada in the north of the border, with Dean Scakaka (President and President Wonderfi President and President CEO), Rolin Gabel (Figment C o-founder and CEO), Genny. ・ Levin (the highest regulator) has decided to focus on a Canadian innovative approach to cryptocurrency regulations and betting.

Please listen to Spotify, Apple, Audible, or register now. Please read the entire preview of Episode 62.

Public Key Episode 62 preview: Staking as a Service and the Canada crypto regulation approach

As the situation of cryptocurrency regulation is overheating in the United States, Ian and Rui is Dean Scaraka (President and Evil CEO), Lolen Gabel (Figment C o-founder and CEO), and Jenny Levin (Figment's highest regulatory representative). Discuss the Canadian innovative approach that regulates and bets cryptocurrencies.

In panel discussions, it explains what is going on a butting as a service (SaaS), the difference between performance and betting, and the differences in the Castodian, cryptocurrency holder, and the risks of regulatory authorities around the world. Understand how it will affect. This discussion looks back on the differences between the status of Canada and the United States, and the approach to streaming, and share how to reach the compliance before the regulations are implemented in Canada.

What are panting protocols and panties as services?

Protocol betting is not an investment product. Rather, token holders will be able to get a reward by betting tokens to verify the transactions on the basic blockchain, which helps to maintain blockchain network security and perfection.

Depending on the basic protocol, the token holder bets (i) his own digital token, or assigns verbalization to a stak e-a s-service ("STAAS") provider like (ii). You can verify new transactions. In each case, the coupon holder keeps the storage and always is the legal owner of the betting coupon.

Once a new transaction is verified, the protocol stake token holder will get rewards, including new digital assets, along with the required transaction fees. Rewards functions as a major incentive mechanism that encourages participation in the transaction verification on the participation certificate network, which is also useful for network safety and dispersion.

The rules for protocol stinking, including the amount of rewards generated, are set by the basic protocol, not the STAAS service provider.

Quote of the episode

"The only way blockchain technology will survive is by proving, running nodes and operating betting services. This should not be limited to only certain categories of individuals or certain individuals with the ability to do it from a technical expertise, everyone should be able to participate in it." - Jenny Levin, Director of Regulatory Affairs, Figment

Minute-by-minute episode breakdown

(2:25) - Canada leads innovation in crypto adoption and develops a regulatory metaphor to protect the ecosystem.
(5:52) - Why staking became the foundation for Figment and why the company is focusing on infrastructure and backend services for the crypto ecosystem
(8:45) - Discussion of the Canadian regulatory environment for crypto and blockchain service providers
(13:08) - Wonderfi and Figment are focused on providing Canadians with compliant and secure access to crypto assets.
(18:45) - Differences in the crypto regulatory environment between Canada and the US
(22:42) - Figment's role in providing stack infrastructure and a breakdown of proof-of-work and proof-of-stack
(27:05) - Wonderfi's efforts to focus on mitigating counterparty risk and provide stack services to customers as an attractive product
(33:15) - Misperceptions in the US
(39:15) - Liquid staking and its "return on capital by type of holder"
(43:35) - Figment's application and making it accessible to the masses while complying with regulations
(46:25) - Wonderfi's focus on international expansion and partnering with reputable betting as a service provider or custodian

Related resources

Check out other resources provided by Chainalysis that perfectly complement this public key episode:

Website: Figment - Digital Asset Staking Built for Institutions
Website: Wonderfi - The Modern Wealth Generation Company
Research Staking protocols are not investment products and rewards are not "performance" (and why that matters)
Video What is betting? How to secure the network and earn rewards for betting on digital assets
Press release Bitbuy Private Wealth launches cryptocurrency services for individuals, corporations and institutions
Blog: Cryptocurrency mining pools and money laundering: two real-world examples
Article Staking is the cornerstone of Web3
YouTube: Chainalysis YouTube Page
Twitter: Chainalysis Twitter: Building Trust in the Blockchain
Tiktok: Building Trust in the Blockchain Between People, Companies and Governments
Telegram: Chainalysis on Telegram

Speakers on today’s episode

Ian and Ryu * Host * (Chain Analysis Best Marketing Officer)
Dean Scaraka (President Wonderfi President and Provided CEO)
Rolen Gabel (Figment C o-founder and CEO)
Jenny Levin (the highest in the figment)

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Transcript

Everyone, we will deliver the episode of Public Key. Today is a variety of exciting topics. Figment's CEO Roren Gabel, Wonderfi's CEO Dean Scaraka, and Jenny Levin, the highest regulatory representative of Figment. Welcome everyone.

Thank you for your invitation.

I think Dean and Wonderfi are doing most of the American cryptocurrency enthusiasts. It seems that your company is not only listed, but also accepted by Canadian regulatory authorities. Could you easily tell us about the background of Wonder Fai and business for those who are not in the Canadian market? And how did you reach Wonderfi, the role of your company?

Of course. Wonder Fai is listed on the Toronto Stock Exchange. Whether you're a listed company like Wonder Fai, or an early bitcoin ETF like 3IQ. Canada was always at the forefront. Wonder Fai itself, especially today, owns and operates two regulated encryption platforms, Bitbuy and Coinberry. Bitbuy is my hometown. I was there in January 2018 as a finance and compliance person.

Today, Wonderfi is focusing on Canadians to provide compliance and secure access to the digital asset industry. As I said, we are in the advantageous jurisdiction. Sorry, Canadian regulators are taking protection measures as I said. The Canadian regulatory authorities have begun with the Crypto Trading Platform, and the platform is the driving force of all the activities that occur today. What we emphasize is to continue developing products in a regulated way to access products and services that can be handled overseas or in other laws. I believe that doing so will provide a safe and secure environment that Canadians can participate in this industry.

wonderful. As I proceed with podcasts, I would like to delve a little more about business strategies and products and services that you can provide. I would like to introduce the other two guests. Lorian, reading your background, noticed that there were two data that indicated that Canadian entrepreneurs run a sporting goods store. I think you run one store in Wyoming, but if my details are correct, it's a SHOPIFY founding story.

There are two people who have no judgment.

Well, I'm glad I wasn't alone. Alright, good, fantastic.

Aside from joking, you are also a great career in front of the figure and have been successful one after another. However, the figure may be a little flying under some of the listener's radar. Because you are similar to a chain and a more bac k-end service. As a retail business, I may not always know well, despite using the technology behind your stage. Please tell us a simple outline of why you launched the company and what you are doing with the encryption ecosystem.

It's a great view. Obviously, retail stores and sports equipment are not my main business, but before starting a business. When I moved to Wyoming, I thought it was a good idea. In other words, I thought it was a great idea that could record skiing as expenses. But it was different. The c o-founder and the c o-founder are the fourth infrastructure companies that go back to more than 30 years ago, and I have to say that it is a bit spicy. All Canadian startups had a nationwide data center company and a very early cloud security company for free ISP browsers. This means that we are from the infrastructure industry, not the financial industry.

I was interested in blockchain and cipher digital assets. Personally, I personally declined the vision, from the original vision of the P2P communication system to the very centralized financial system, including big data providers like Google. I witnessed. What we were going to head was to control all of the large large companies. And I thought this technology could compete with it. We are not anarchist, and of course we run a foundation business. But we really thought that this technology could be a countermeasure for such trends, which were very unhappy and many negative external properties. That is my personal motive involved in this business. And we are from infrastructure, so this bet is natural. We were used to handling security, larg e-scale networks, complex networks and networking, so it was natural to enter this business.

Because they work through partners like Wonderfi, they provide infrastructure for the exchange partner to bet. Therefore, you may not always know us, but if you bet, there is a good chance that you use our infrastructure as a consumer.

I am surprised. And finally. Jenny, your career is fascinated by Understanding the transition from a US lawyer to the world of the web3 that jumps into the deep pool. I would like to ask a little about your journey and the roles you are playing now.

Absolutely. I was fortunate to get a job at DraftKings after I left the U. S. Attorney's Office. It was right after PASPA was overturned by the Supreme Court, so there was a whole bunch of regulatory issues around state sportsbooks. My path at DraftKings started by working on regulatory and legal issues around casinos and sportsbooks, and to some extent daily fantasy sports. I got to work with one of the founders, Paul Lieberman, and he has a strong interest in Web3 and NFTS. I got to work with him and his amazing product team developing and building the NFT marketplace. That was my first job in the Web3 environment. It was very exciting. I got to take existing legal principles and project them and try to apply them to a new space that I think is very exciting.

And that's what I get to do at Figment, albeit in a slightly different context, the Proofstadent world. Our customer base is very diverse, so we have to be savvy. And it's a fun place to be able to navigate these uncertain waters and try to keep up with the ever-changing environment.

For those of you who haven't checked out the DraftKings NFT Marketplace yet, they're bringing NFTs to the cross point of gambling.

If you've ever played fantasy sports, you draft a team and you win or lose with your friends based on your actual performance. I usually lose. Exactly.

That's good for DraftKings

Exactly. The game of NFTs that donates is moving away from where you can actually get players, and there's a little bit more of an ownership structure there, and I think that makes the game more interesting. It's definitely on the cutting edge of actually doing some really cool things with the NFTs.

Initially it was just selling NFTs. And then as we dug deeper into that, it became a very complicated legal area in terms of it being a utility rather than a representation of a security, and how it integrates with the actual game and the game that's played. It's a pretty cool product.

That prepared me well for the challenges that I face every day at Figment, is it a security, is it a commodity, is it an investment product, is it not?

that's right. He taught me the importance of working with the product team and the engineering team. There are wonderful teams in the figgents. They are surprisingly patient, including me. And I was able to understand how we are working on the problem. How can a little fin e-tuning can be made to reduce risk and provide services to customers? I think it's very valuable. Working for Draftkings was an irreplaceable experience for me. And now working with the figure team is an incredible opportunity.

This is extraordinary. But Dean, you will return a little about Wonderfi. You and I were Toronto, and recently I had the opportunity to talk about bitcoin in Miami in Florida. What I gained from these conversations is that Wonderfii has built the largest exchange in Japan, probably in retail or institutional investor mining, the safest way to do something with a crypt. It is a place. Talk a little more about your business and future prospects. I know that two major acquisitions are now moving.

Of course. rude. In April, we announced the acquisition of Coinsquare and Coinsmart, and we would like to complete these two transactions in the near future. And this is the road that Wonder Fai started with Bit Buy in March 2022 and the acquisition of Coinberry and BlockChain Foundry at the end of the same year. We were trying to establish the best platforms in Canada and ensure sufficient market share and scale. Canada is a very small market, so I think the scale is important. Many people want to say that it is the size of California that cannot sleep at night. If the market size is small, the scale will be important, such as compliance, regulation, and maintaining rating, which will be important. That's right. He taught me the importance of working with the product team and the engineering team. There are wonderful teams in the figgents. They are surprisingly patient, including me. And I was able to understand how we are working on the problem. How can a little fin e-tuning can be made to reduce risk and provide services to customers? I think it's very valuable. Working for Draftkings was an irreplaceable experience for me. And now working with the figure team is an incredible opportunity.

Of course. rude. In April, we announced the acquisition of Coinsquare and Coinsmart, and we would like to complete these two transactions in the near future. And this is the road that Wonder Fai started with Bit Buy in March 2022 and the acquisition of Coinberry and BlockChain Foundry at the end of the same year. We were trying to establish the best platforms in Canada and ensure sufficient market share and scale. Canada is a very small market, so I think the scale is important. Many people want to say that it is the size of California that cannot sleep at night. If the market size is small, the scale will be important, such as compliance, regulation, and maintaining rating, which will be important. that's right. He taught me the importance of working with the product team and the engineering team. There are wonderful teams in the figgents. They are surprisingly patient, including me. And I was able to understand how we are working on the problem. How can a little fin e-tuning can be made to reduce risk and provide services to customers? I think it's very valuable. Working for Draftkings was an irreplaceable experience for me. And now working with the figure team is an incredible opportunity.

Certainly, as we've seen in bear markets, when volume dries up and you have to maintain good relationships with regulators and maintain all of the compliance practices.... like I said, scale really matters. From Wonderfi's perspective, we believe that these two acquisitions give us the scale we need to not only survive and succeed in bear markets, but also position us well for better markets that we think are coming. So we're really excited to close the acquisition of all these companies.

It's certainly not an easy job. You have to deal with personalities, you have to deal with different technology stacks, different providers of specific vendor solutions. So, our job is tough. We see a path forward to be the clear leader in digital assets in Canada, whether it's on the commercial side, the OTC side, or new products that we're looking to roll out in the coming months and years. We're confident that with our foothold in this market, we can do that and develop the products that our customers are looking for.

I like this story because it's something that I've been talking about as a trend for at least the last year. Investors want a safe option, they want to be with the biggest players in the market that offer the best service, are future-proof, and are likely to still be around a year, two years, five years from now. So I think we're starting to see a real consolidation phase in a lot of markets. It seems like we're a little bit ahead in Canada, but I think this will play out in other parts of the world.

In recent months, major overseas platforms have withdrawn from the Canadian market, due to regulatory costs and significant changes in business needed to comply with Canada. I mentioned a little bit about the major costs we will bear as a major company has been regulated in recent years, as well as a platform like us, which will be borne by a major company. Is starting to see. On the other hand, these international platforms continue to provide products and services in Canada, despite the same regulations. Therefore, it is good that this thesis, which has some important meaning, is finally realized. Having an advantage as a starting person and having a relationship with Canadian regulatory authorities must be part of a lon g-term competitive advantage.

I want to pull this thread a little. In contrast to the US market, people say that "it is necessary to clarify regulations." In Canada, the regulations became clear, and many people said, "Oh, I understand, but it is a huge burden and I can't afford to do it, but obviously you have sailed this waters well. I think you've got a license for a broker dealer and now you have a license to bet. I think it will be a model that many people are listening to.

There are several things there. From a business point of view, when I came to bit by, we were really lon g-term perspective. I wanted my partner and vendors to understand our business model and how to operate without being out of hand. For this reason, we always focused on doing things correctly and building with a lon g-term perspective. If you can navigate regulatory authorities before or before the regulations are needed, everything will be successful. I think this shows the story of the company and what kind of business it is. In recent months, has withdrawn from the Canadian market in recent months, due to regulation costs and significant business changes needed to comply with Canada. I mentioned a little bit about the major costs we will bear as a major company has been regulated in recent years, as well as a platform like us, which will be borne by a major company. Is starting to see. On the other hand, these international platforms continue to provide products and services in Canada, despite the same regulations. Therefore, it is good that this thesis, which has some important meaning, is finally realized. Having an advantage as a starting person and having a relationship with Canadian regulatory authorities must be part of a lon g-term competitive advantage.

There are several things there. From a business point of view, when I came to bit by, we were really lon g-term perspective. I wanted my partner and vendors to understand our business model and how to operate without being out of hand. For this reason, we always focused on doing things correctly and building with a lon g-term perspective. If you can navigate regulatory authorities before this regulation is needed or before compliance with regulations, everything will work. I think this shows the story of the company and what kind of business it is. In recent months, major overseas platforms have withdrawn from the Canadian market, due to regulatory costs and significant changes in business needed to comply with Canada. I mentioned a little bit about the major costs we will bear as a major company has been regulated in recent years, as well as a platform like us, which will be borne by a major company. Is starting to see. On the other hand, these international platforms continue to provide products and services in Canada, despite the same regulations. Therefore, it is good that this thesis, which has some important meaning, is finally realized. Having an advantage as a starting person and having a relationship with Canadian regulatory authorities must be part of a lon g-term competitive advantage.

A few years before companies like Voyagers and Celsior are on a rocket ship and providing these performance products, why are they in Canada and comply with laws and regulations that have not been maintained yet? I will pull out my waist. A few years later, this gentle and steady approach has definitely achieved results so far.

In Canada and the United States, I always believe that there was a moment of FTX in 2019 that the encryption trading platform went out of business in Canada. And unfortunately, not only FTX but also other platforms on the bus last year, I think that it is not very different from what I saw in Canada. There was a moment in Canada a few years ago, and we were able to take some frameworks to start and evolve the industry over time.

Jenny, what do you think about that outlook? There is a quadriga moment in the United States, and two or three years ahead can a peaceful and happy regulatory environment in Canada? Or is it too optimistic?

I think it's pretty optimistic. I think the cooperation of the Canadian government and the state of the State and how to encrypt the Ontario Security Committee is very different. If the U. S. government, regulatory authorities, and all people cooperate with the Canadian regulatory authorities and legislative prefectures, it may be possible. However, I think there is a fundamental difference in the approach. Looking at the notice, guidance, and rules in Canada, there are no new rules that are specially applied to the cryptographic platforms, markets and agents. What they are trying to do is that they are very customized to the needs of companies that are doing business, using the existing systems but also recognizing the need to promote innovation. It is to do. A few years before companies like voyagers and Celsio are on a rocket ship and provide these performance products, why are in Canada and comply with laws and regulations that have not yet been maintained. I will pull out my waist as to whether it is. A few years later, this gentle and steady approach has definitely achieved results so far.

I think it's pretty optimistic. I think the cooperation of the Canadian government and the state of the State and how to encrypt the Ontario Security Committee is very different. If the U. S. government, regulatory authorities, and all people cooperate with the Canadian regulatory authorities and legislative prefectures, it may be possible. However, I think there is a fundamental difference in the approach. Looking at the notice, guidance, and rules in Canada, there are no new rules that are specially applied to the cryptographic platforms, markets and agents. What they are trying to do is that they are very customized to the needs of companies that are doing business, using the existing systems but also recognizing the need to promote innovation. It is to do. A few years before companies like Voyagers and Celsior are on a rocket ship and providing these performance products, why are they in Canada and comply with laws and regulations that have not been maintained yet? I will pull out my waist. A few years later, this gentle and steady approach has definitely achieved results so far.

Then look at all the companies literally and understand the business model. What do they take time, what are they going into weeds? By doing so, you can provide a customized solution to the company. I think this is a great benefit, as they really spare no effort to understand. I also think that regulatory authorities will help you a lot. Following the Canadian regulatory system is a cost advantage. There are ways to approach, even if you can't afford to register as a regular dealer or marketplace in Canada. You can also use the Canadian regulation system, or become a limited trader like Bitbuy. There is an approach. And there are exceptions to what you want to use.

I will answer your question. I think the problem in the United States is not sincere to provide something like a regulated sandbox. Open your ears, listen, and don't have time to understand what you really need and what you need. On the contrary, just pushing a square nail into a round hole, no one will listen to it and will not change his thoughts. They are trying to stick to their beliefs. I am not very optimistic.

I was expecting an optimistic opinion from you. In recent months, it seems that the United States has been discussing the fact that holding a cipher as an asset is legal, rather than a discussion on how to clarify regulations. That is what is actually proposed. And some people say, "No, no such thing should be gone," it looks unrealistic as a result, which is our discussion. The story changes, but Lorian. As I mentioned earlier, how did you actually establish a company? Who are you working with? Obviously, it is a wonderful partnership with Wonder Fai. What do you actually do for them? And how does it lead to services and products that can be experienced by end users? And look literally all companies and grasp the business model. What do they take time, what are they going into weeds? By doing so, you can provide a customized solution to the company. I think this is a great benefit, as they really spare no effort to understand. I also think that regulatory authorities will help you a lot. Following the Canadian regulatory system is a cost advantage. There are ways to approach, even if you can't afford to register as a regular dealer or marketplace in Canada. You can also use the Canadian regulation system, or become a limited trader like Bitbuy. There is an approach. And there are exceptions to what you want to use.

I was expecting an optimistic opinion from you. In recent months, it seems that the United States has been discussing the fact that holding a cipher as an asset is legal, rather than a discussion on how to clarify regulations. That is what is actually proposed. And some people say, "No, no such thing should be gone," it looks unrealistic as a result, which is our discussion. The story changes, but Lorian. As I mentioned earlier, how did you actually establish a company? Who are you working with? Obviously, it is a wonderful partnership with Wonder Fai. What do you actually do for them? And how does it lead to services and products that can be experienced by end users? Then look at all the companies literally and understand the business model. What do they take time, what are they going into weeds? By doing so, you can provide a customized solution to the company. I think this is a great benefit, as they really spare no effort to understand. I also think that regulatory authorities will help you a lot. Following the Canadian regulatory system is a cost advantage. There are ways to approach, even if you can't afford to register as a regular dealer or marketplace in Canada. You can also use the Canadian regulation system, or become a limited trader like Bitbuy. There is an approach. And there are exceptions to what you want to use.

Right. Thanks for the question. I'll go back a little bit to your last question, about what Jenny was saying. I like to think that, as Winston Churchill said, "Americans do the right thing after they've exhausted all other possibilities." I'm a little bit more optimistic, not necessarily on the right timeline, but at least in the later elections, that we'll eventually have a workable framework in this country. So I'm cautiously optimistic on that point.

Figment. From a step back. Over the last five or six years, there's been a pretty significant change in how blockchain operates. Proof of work, as I'm sure everyone knows, is like an operating system for the blockchain. It's like an operating system for the blockchain. I'm sure technical engineers will get mad at me for using that term in this analogy. But I'm sure you've heard the story that bitcoin mining is very power intensive. I personally think it's overcharged. And it consumes a lot of computing power.

About five years ago, people were looking for alternative ways to operate blockchain with essentially the same outcome in terms of decentralized security and blockchain generation... blockchain blocking and blockchain integrity. That was what we called Proof of Stake. It essentially provides a decentralized, secure distributed ledger, just like Bitcoin miners do, but with much fewer computational resources and perhaps scalability. There are still computers involved in the process.

If you need to know the difference between Proof of Work and Proof of Participation, it's that in Proof of Work, there are minors, and there are separate individuals who have Bitcoin. With Proof of Stake, you can essentially participate in running Ethereum if you have 32ETH. You can run a node, secure the network, and process transactions. That's a very big difference. It merges the functionality of being a token holder and being able to participate by running the protocol.

As individuals, all of us on this call could probably figure out how to run an Ethereum note. Maybe not me, but anyone could ironically figure out how to do it, given enough time. But if you're a large trustee and you have hundreds of millions or billions of Ethereum proof of stake on your platform, like WonderFi does, it's very hard to do that at scale. We provide the security framework, we scale the infrastructure to run the nodes, and we provide a set of services for our partners around reward reporting, interfaces, and API connectivity. Basically, we're dealing with large holders and places that have large holders as customers, and we're basically running this very complex infrastructure on [inaudible 00:23:53].

For the less technical people in the audience, let me unpack that. At a basic conceptual level, Ethereum was similar to Bitcoin, where miners ran Ethereum nodes on the network and could receive fees or rewards for creating blocks that became part of the chain. We moved away from this proof-of-participation consensus mechanism last year.

Right now, you have to deposit 32ETH into a node to run it. So the capital required is higher, but they also build an incentive system so that if I'm a bad node operator and my node is always down, or I don't play by the rules, or I sign duplicate transactions, or I do all kinds of bad things, I'll be financially penalized.

Cut, sorry. I was there.

The closer the worse. It's just as bad as losing [inaudible 00:24:58] or rewards for game time, one of those two.

There is still a possibility. I think some people said, "Wow, 32eth is a lot of money." Probably, there is a workstation under the desk, which is far from an average open source hobbyist who just wants to throw software there. On the other hand, the role of operating verification nodes and block production nodes is very important. Currently, the Ethereum network is connected to billions of dollars and billions of dollars, and we all hope that Ethereum has a high reliability. He has a lot of Ethereum and wants to leave it and participate in the security of the network, but he has no technical skills, physical hardware, servers, data centers, and cannot be actually operated.

So the relationship with Wonderfi is that I can become a Wonderfi customer, deposit ETH in Dean, and say, "I'm not doing anything now, I'm just sitting there." I think. You can tell Dean to say, "I want to move to a betting service." By doing so, the network reward is concentrated on me. In other words, there is a relationship as a service provider. The technical backend is the backend of the Wonderfi service, and the nodes work on the Wonderfi service backend. Is it so close?

There are some important things to be aware of. One is Wonderfi, sel f-custody, books, how many Ethereum you own, and when you stake your assets, giving assets to the provider like us. There is no.

That's a wonderful point.

So we are completely focused on reservations. So we are not a counter party, in the sense that if we are no longer, we will lose funds. Dean set an illusion on other companies like Celsior, but unfortunately some of the programs were called betting. You can touch it a little. But it wasn't really a protocol betting, but a traditional loan with counter parties and risks. Betting does not have it. Actually execute the protocol. There is a possibility that some problems can occur in Ethereum, but there is a risk if you have a token.

So there is no extra risk except that if we do not work, we may lose rewards. Or, if something really bad happens, we can talk a little in the cut scenario we can speak. However, there is no counter party risk that happened in other companies. So, if you have a lon g-term encryption, this is the safest and most useful way.

I think that there is a confusing activity under the flag of winning with a performance, but in fact, it is a very different series of actions. I think you're writing a great blog and revealing some of them. He explained the difference between the meaning of participating in the consensus network and the differences between other options that may have been incorrectly collected.

Definitely. As an industry, we were very poor at defining technical terms. We have tried to talk about protocol stinkings as different from lending and fluid provision, but there are many things we can do with digital assets. If you lend it to someone, you will have a counter parties, and if you provide fluidity to the distributed exchange, there is a risk associated with it. In other words, most of these rewards are inflation. You work, make the next block, and simplify a little. By doing so, you can actually work and get rewards by protecting the relative status in the network, moving the node, protecting the protocol, and processing the transaction. is. So there is no extra risk except that if we do not work, we may lose rewards. Or, if something really bad happens, we can talk a little in the cut scenario we can speak. However, there is no counter party risk that happened in other companies. So, if you have a lon g-term encryption, this is the safest and most useful way.

I think that there is a confusing activity under the flag of winning with a performance, but in fact, it is a very different series of actions. You are writing a great blog and reveals a part of it. He explained the difference between the meaning of participating in the consensus network and the differences between other options that may have been incorrectly collected.

Definitely. As an industry, we were very poor at defining technical terms. We have tried to talk about protocol stinkings as different from lending and fluid provision, but there are many things we can do with digital assets. If you lend it to someone, you will have a counter parties, and if you provide fluidity to the distributed exchange, there is a risk associated with it. In other words, most of these rewards are inflation. You work, make the next block, and simplify a little. By doing so, you can actually work and get rewards by protecting the relative status in the network, moving the node, protecting the protocol, and processing the transaction. is. So there is no extra risk except that if we do not work, we may lose rewards. Or, if something really bad happens, we can talk a little in the cut scenario we can speak. However, there is no counter party risk that happened in other companies. So, if you have a lon g-term encryption, this is the safest and most useful way.

So I don't think of it as a passive income in the traditional sense or a return in that sense. Again, there's probably a lot of ways that this ratio could go down. Let's say if you're a Mastercard or Visa holder and instead of the bank processing it, you actually process the Visa transaction and you share in the fees that come from that. It's not a perfect analogy, but that's what's great about blockchain. Anyone could make a Bitcoin miner, but this is a different way.

If I could get out of this deal with Visa, I'd definitely trade my airline miles for a share of the credit card interchange fees.

But I think it's a great analogy that the decentralized nature of something like Ethereum is still available. These rewards don't accrue to a central organization that runs Ethereum, they're paid to everyone that runs a node. Let's start by talking to Dean. How important is this protocol betting feature to your business? Is it just a little bit for really high-level customers or is it something that people are broadly interested in? Talk a little bit about how that impacts what you do at Wonderfi.

Exactly. I think that's a good point that Lorien touched on earlier. When we started this journey, as I said, this platform is regulated, so if we were to offer a new product service, we had to go through the gauntlet of the Canadian regulator. And when we thought about how we could offer this kind of service to our customers, we compared what a lot of people were doing with lending at the time, and we were doing very well compared to that set, which was one of the big factors in our decision. And we thought that would give the regulators confidence and give them a lot of comfort with this solution.

The solution itself is the largest of the international cryptographic trading platform, exactly a table stake. The reason is that this is a table stake for them because customers keep their assets on the platform, which is a considerable amount of money. It is very attractive to give such customers a chance to get rewards. The cost benefits of holding Ethereum should be able to make a profit of 4 to 5 %, but if you look at the current interest rates, it may not be the case for some people. However, if Ethereum can be stored on the platform and earned profits as an investor ... that is, if you can get rewards on the platform ... this is a really attractive proposal. I think.

As you said, I think this is not always a specific wealthy or retail product, but an appeal to everyone. Ultimately, we will appeal to lon g-term holders. If I are Ethereum fans, two years, five, ten years, and an Ethereum, it is a very attractive offer.

What we needed was to be really intuitive for users and to educate the processes and mechanisms. The other is to reduce counterparty risks and to comply with compliance. We believe this will be a major growth opportunity for future business. Certainly, by integrating the acquired platform into one platform, all users will be able to bed through bitbuy. For us, we believe this is a really exciting growth field for our business as we keep listing tokens that can be used for betting.

Jenny, what Dean has just said in contrast to what we have seen in the United States. Kraken has recently settled with the Securities and Exchange Commission and has basically not used the betting platform. The US and Canada markets have two completely different views and results on betting, what is happening? Or is there a difference in the program itself? This solution itself is the largest of the international cryptographic trading platform, exactly a table stake (bet). The reason is that this is a table stake for them because customers keep their assets on the platform, which is a considerable amount of money. It is very attractive to give such customers a chance to get rewards. The cost benefits of holding Ethereum should be able to make a profit of 4 to 5 %, but if you look at the current interest rates, it may not be the case for some people. However, if Ethereum can be stored on the platform and earned profits as an investor ... that is, if you can get rewards on the platform ... this is a really attractive proposal. I think.

Jenny, what Dean has just said in contrast to what we have seen in the United States. Kraken has recently settled with the Securities and Exchange Commission and has basically unavoidable the betting platform. The US and Canada markets have two completely different views and results on betting, what is happening? Or is there a difference in the program itself? This solution itself is the largest of the international cryptographic trading platform, exactly a table stake (bet). The reason is that this is a table stake for them because customers keep their assets on the platform, which is a considerable amount of money. It is very attractive to give such customers a chance to get rewards. The cost benefits of holding Ethereum should be able to make a profit of 4 to 5 %, but if you look at the current interest rates, it may not be the case for some people. However, if Ethereum can be stored on the platform and earned profits as an investor ... that is, if you can get rewards on the platform ... this is a really attractive proposal. I think.

As you said, I think this is not always a specific wealthy or retail product, but an appeal to everyone. Ultimately, we will appeal to lon g-term holders. If I are Ethereum fans, two years, 5 years, 10 years, Ethereum, and in the meantime, it is a very attractive offer.

Thank you for your invitation.

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

On episode 62 of the Public Key podcast, host Ian Andrews meets with Dean Skurka, President & Interim CEO of WonderFi, Lorien Gabel, Co-Founder & CEO of. Our Financial Regulation Unit provides advice to financial institutions on all aspects of regulation and compliance in the sector. lcusoccer.org › blog › epeverything-you-need-to-know-about-.

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