The British Government going full degen👾 + The importance of security🔒
Gm 1Walletoors 🚀
A shortage of stories in Web3? Don’t know her. But we do know how to make the most current stories related to crypto, NFTs, and other degen activities digestible. Here’s what we got this week:
🍵 Her Majesty wants a cup of regulated NFTeas: Just as the Brits embraced and revolutionized Rock N’ Roll, they’re now looking to do the same with NFTs and crypto
🔥 Burning bridges: Why hackers got away with $600million in Ethereum and USDC from one of the biggest DeFi games
🍨 Sweet Scoop: Security and shortcuts don’t mesh well together
📲 1W Updates: Looking back on NFTLA
Royal Family collection dropping soon?
👑 The U.K looking for a different kind of royalty
Government regulation is typically slow in keeping up with tech, but the U.K has made it clear they’re well-equipped and won’t miss the race to becoming the first globally-recognized crypto hub. In hopes of being the crown jewel for crypto investments and tech, the British Finance Minister has commissioned the Royal Mint to launch an NFT this summer to kickstart U.K’s DeFi regulation and infrastructure plan. Here’s some of the (regulated) tea:
Regulating stablecoins to recognize them as commissioned payment.
*Stablecoins are tokens that combat volatility and offer price stability through having a fixed value to a fiat (traditional government-backed) currency such as the Dollar, Pound, Yen etc
Considering legal status of DAOs
*Decentralized Autonomous Organizations are community-backed orgs with no centralized leadership and decisions based on community proposals + votes
Establishing a Cryptoasset engagement group with chairs as leaders
Developing a competitive tax system to encourage the development of crypto markets
Given the U.K’s influence in world finance, being “for” crypto with a clear government stance (all while a lot of Europe is calling for a crackdown…) is kind of a big deal. And because countries often use an ally’s rollouts of anything new to learn, innovate, and plan their improved version, we’re wondering, who’s up next?
Not very cash money
❌ One big hack after another, this being one of the largest to date
Yikes. Hackers stole around $600 million in mostly Ethereum and some USDC through a bridge of one of the most popular DeFi games – Axie Infinity.
Here’s the breakdown of what happened: The bridge (to the kingdom) is maintained by 9 keepers (validator nodes) who each have their own private keys (known as multi-sigs). The primary functions of these keepers include signing transactions and maintaining the security of funds that bridge over from one kingdom (blockchain) to another. It takes 5 of the 9 keepers turning their keys (signing) for transactions to be approved. The builder of one of the kingdom palaces, Sky Mavis, has 4 of those keepers, meaning they hold 4 collective keys in their tower. The other 5 are held in separate individual towers for security. Here’s where the problem happened: One of the 5 remaining keepers known as Axie Validator DAO, let Sky Mavis use their key as a shortcut to deal with overwhelming transactions. Axie DAO Validator later took their key back but Sky Mavis forgot to delete it from their server. So when Rumpelstiltskin (the hacker) broke into the Sky Mavis tower to find 5 digital keys needed to sign transactions, the bridge was compromised and Rumpelstilskin had a field day.
🍨 Sweet Scoop: There’s no shortcut in safety
Not to be an Einstein, but it’s been shown time and time again that shortcutting safety is more costly than it is efficient. It’s imperative that you don’t lose or leave a wallet’s private keys or seed phrases anywhere hackable because once a Rumpelstilskin takes control of those, your gold is gone. Never store private keys on a device connected to the internet or send it in a message. Instead, take the time to memorize it, or secure your funds on a hardware wallet (a ledger). If you’re using a centralized exchange (Coinbase or crypto.com), have a 16-character password with a variety of characters. When it comes to security, the more the merrier.
📲 1Wallet Updates
Some of the 1Wallet team hung out around NFT LA and met a bunch of friendly faces and community members that provided valuable feedback to us. We also celebrated the launch of Golden DAO with Harmony and Andrew Yang. Super exciting stuff! And for those of you who have yet to be onboarded, we thank you again for your patience. Fear not, your time will come young Padawan.
As always- stay up to date with us on the latest, drop feedback in Discord and follow us on Twitter.
Thanks for reading. See you soon!
The 1Walletees 🐶