Ethereum ETFs could go live in July, analyst says

Bloomberg analyst Eric Balchunas expects spot Ether (ETH)  exchange-traded funds (ETFs) to begin trading in the U.S. in July.

Balchunas updated his forecast for the official launch of spot Ether ETFs, moving the over/under date to July 2.

The crypto expert noted that the U.S. Securities and Exchange Commission (SEC) staff had sent comments on the S-1 filings to issuers, describing them as “pretty light” without major issues. 

He mentioned that the SEC has asked for responses within a week, suggesting a decent chance that the ETFs could be declared effective the following week, potentially before the “holiday weekend.”

Balchunas emphasized that while anything is possible, this is their best estimate at the moment.

On June 13, SEC Chairman Gary Gensler provided some clarity on ETH ETFs during his testimony to Senator Bill Hagerty.

Gensler indicated that he expects the S-1 filings for spot Ethereum ETFs to be approved by the end of the summer. This statement has reinforced the belief that while there may be some delays, approval will likely happen within the next few months.

Balchunas also mentioned that the issuers of spot Ethereum ETFs were waiting for feedback from the SEC’s Division of Corporation Finance (Corp Fin) on their S-1 filings, which they had submitted two weeks earlier.

He explained that this delay was attributed to Corp Fin reviewing these documents for the first time, highlighting that this unexpected situation stemmed from a likely last-minute political shift within the SEC, which surprised Corp Fin as well.

Balchunas further emphasized that there is uncertainty about how quickly Corp Fin could prioritize and process the filings. 

However, some observers believe Ethereum ETFs may not attract as much attention as Bitcoin  (BTC) ETFs because they do not offer staking capabilities.

SEC Commissioner Hester Peirce, known for her liberal stance on cryptocurrencies and nicknamed “Crypto Mom,” has expressed skepticism regarding the SEC’s treatment of Ethereum. Peirce has highlighted that historically, the SEC has categorized Ethereum as a security, unlike Bitcoin, which is classified as a commodity.

The SEC has maintained that Ether is a security, which introduces a distinct set of challenges compared to the approval process for Bitcoin ETFs,” Peirce remarked. 

The Ethereum ETF journey so far

The United States Securities and Exchange Commission (SEC) has initiated the approval process for Ethereum exchange-traded funds (ETFs), marking a notable advancement for the cryptocurrency industry.

On May 23, the SEC approved eight 19b-4 filings. However, trading of these ETFs cannot commence until they obtain the required approvals for their S-1 registration statements.

The 19b-4 forms are regulatory filings that propose amendments to current rules or regulations, facilitating the listing and trading of new securities. Approval of these forms signifies the SEC’s authorization for exchanges to list the ETFs, although it does not ensure immediate commencement of trading for the ETFs.

This progress represents a significant advancement in the approval journey for Ethereum ETFs, which the cryptocurrency community has eagerly awaited. 

Concurrently, the SEC is reviewing the S-1 registration statements filed by Ethereum ETF issuers. These statements offer comprehensive details about the companies and the specific securities they plan to offer. 

At the time of writing, the price of Ethereum (ETH) is hovering around ,562.97, representing a 2.5% increase in the last 24 hours. However, the world’s second-largest crypto is still down by 3.5% on the weekly timeframe, according to CoinGecko data.

 

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Theo Crypto News

Sharding tech makes 100x scalability and seamless interoperability a reality | Opinion

On the first Prime Day of 2023, Amazon facilitated the sale of 375 million items. Just one store, during one of its busiest days of the year, provides the ultimate convenience for its users—a testament to the decades of infrastructure development in web2.

Contrast this with the never-ending possibilities of a unified web3 ecosystem, which, although spoken of widely, seems increasingly challenging to achieve, characterized by fragmented systems, prolonged transaction times, and prohibitive costs.

Advocates of web3 have long sought to accelerate efforts to mirror web2’s seamless experience and benchmarks. The biggest impediment to this dream is ensuring scalable networks that retain decentralization with growth. 

Enter sharding tech. It has spoken widely and been experimented globally, and now, finally, it is a reality. From what the developer community has seen of it so far, it may well be the messiah the web3 community has been long waiting for. And rightly so!

Sharding tech at work

Let’s accept it. The existing web3 model is relatively slow, inefficient, and costly. It’s difficult to convince the majority of the world’s internet users, let alone companies and even the developer community, to make a fast switch from the simplicity and convenience of web2.

Sharding tech’s newfound emergence now makes it more than an urban myth. While the tech has been spoken of quite a bit by the industry’s titans, the launch of the recent Sovereign Chains is the first-of-its-kind application incorporating this groundbreaking tech. One that is bound to advance the use cases of the top L1s and hundreds of L2s looking to solve for scalability and interoperability. 

At its core, sharding involves splitting the network into smaller, more manageable pieces, maintaining security, speed, negligible costs, and energy efficiency even at times of exponential activity. Theoretically sound, its practical implementation in Sovereign Chains now proves that it can solve web3’s most pressing challenges, in a way that’s economical, developer friendly and extremely resource efficient. This means creating a blockchain capable of 100X scaling compared to Ethereum or Bitcoin, at a fraction of time and energy. 

One of the biggest sectors that will benefit from sharding tech is decentralized finance. It’s no secret that to compete effectively with the current financial system, web3 must offer solutions that are tenfold superior in every measurable way. By deploying sharding tech, it’s possible to ensure that end users not only achieve parity with the legacy system but also enjoy improvements such as globally fair access, open playing fields, transparency, value creation, privacy, and security. 

The tech is built in a way that allows premier defi platforms to no longer be bound by blockchain-specific limitations, enabling interoperability with other defi products on any major chain, eliminating liquidity fragmentation, and unlocking significant capital efficiency improvements.

Beyond defi, the applications of sharding-tech-powered Sovereign Chains extend to gaming, healthcare, supply chain, education, government, and enterprise sectors. In gaming, for example, high throughput and low latency, combined with adjustable transaction fees, enable radically different business models and gameplays. Developers can introduce innovative in-game reward structures, new economies, auctions, time-sensitive airdrops, and more, ensuring seamless user experiences regardless of scale.

Understandably, all this leads to the foundation for the first-ever interconnected web3 ecosystem, inheriting capabilities such as on-chain 2FA, native standards, user-friendly aliases and more, to address critical challenges hindering widespread adoption of web3.

Driving adoption from the ground up

To gain mileage for any major breakthrough in the web3 world, the first step is to take the developer community into confidence. Almost the opposite of how consumer products in the traditional world target end consumers. What’s common, though, is the purpose to simplify people’s lives by acting on the needs of early adopters.

Composability of digital assets and unbreakable security are other key advantages that come with sharding tech’s scalable architecture, enabling developers to focus on innovation rather than infrastructure.

Sharding tech provides a robust and scalable foundation for building the next generation of dApps and interoperability of L2s with major crypto chains like Bitcoin, Ethereum, and Solana. Something that’s much needed for developers to leverage multiple ecosystems’ strengths to create more versatile and powerful products for last-mile user consumption. 

The merging of various chains into an ecosystem goes beyond the traditional bridging of assets. Enhanced smart contract capabilities, custom VM environments, and comprehensive SDKs empower developers to create, test, and launch solutions that natively work on multiple chains more efficiently. This holistic approach lowers barriers to entry, inviting more talent, including the current web2 dev community, to explore blockchain tech without the limitation of past iterations. 

Advancing the case of Sovereign Chains

As the spotlight shines on the need for scalable web3 infrastructure in a world where security and data concerns are fast imploding, expect to see network features such as parallel processing, confidential transactions, or VM-specific improvements that can extend the inherent functionalities.

Achieving the seamless and expansive reach of existing web2 technology while fostering collaboration between chains is an ambitious yet attainable goal. Through sharding technology and the introduction of Sovereign Chains, it is now possible to not just dream but actually build a scalable, secure, and cost-efficient architecture that can support the creativity of current and future web3 developers.

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Theo Crypto News

Bitcoin price prediction 2033: Bernstein sees upside to $1m

Bernstein, an asset management firm with over 0 billion in assets, is doubling down on its Bitcoin price prediction, raising their target for 2025 from 0,000 to 0,000. The prediction for 2033 is an astounding million.

Analysts at the firm shared their price projection for the flagship cryptocurrency on Friday. In a note to clients, the research firm said expectations for a surge in spot Bitcoin ETFs represents a bullish catalyst.

“We believe that the U.S regulated ETFs were the watershed moment for crypto that brought in structural demand from traditional pools of capital,” Bernstein’s Gautam Chhugani and Mahika Sapra, noted.

Since their trading debut in early January, spot Bitcoin ETFs have registered net inflows of more than billion. According to the analysts, the global spot Bitcoin ETF market could grow to account for approximately 7% of BTC’s circulating supply by 2025.

BTC price to hit million by 2033

As well as the spot ETF market, Bernstein analysts have asserted that Bitcoin is in a new bull cycle.

The recent block reward halving that cut daily emission from around 900 bitcoins to 450 bitcoins is another factor, they noted, writing that an explosion in demand amid ongoing supply shock could propel BTC price to over 0k by mid-to-end of next year.

The analysts also expect spot Bitcoin ETFs to account for roughly 15% of the “digital gold’s” circulating supply by 2033. In this case, a rally in price in relation to marginal cost of production could mean a surge to over million in the next eight years.

Gautam Chhugani and Mahika Sapra see Bitcoin at 0,000 by end of 2029 and over million by 2033.

Bernstein also initiated coverage on the MicroStrategy stock, assigning an outperform rating with a price target of ,890 by end of 2025.

MicroStrategy (MSTR) is an AI-powered cloud analytics firm that currently holds 214,400 bitcoins. The company has announced a 0 million convertible notes sale with proceeds set to buy more BTC.

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Theo Crypto News

Mantra (OM) price forecast: on the cusp of a bearish breakout

The price of Mantra (OM) has suffered a harsh reversal this week, joining other altcoins like Ethereum, Solana, and Cardano.

OM slumped to a low of .8160 on Friday, down by over 25% from its highest point this week.

Added to a new RWA fund

Mantra’s OM token plunged even after some good ecosystem news. In a statement, the developers said the token had just been added to Swissborg’s Real World Asset (RWA) thematic basket.

The basket includes other tokens in the RWA industry, such as Synthetix Network, VeChain, Chainlink, Maker, and Polymesh Network. 

This is notable because Swissborg is one of the biggest players in the crypto industry, with almost 800,000 users and over .26 billion in assets. Its token has a market cap of over 7 million in assets.

Meanwhile, Mantra’s assets have jumped sharply in the past few weeks. It now has over .3 million in assets, higher than the million it started the year at. It also recently expanded to the UAE.

Mantra TVL

With a market cap of over 0 million, Mantra is one of the biggest players in the tokenization industry. Its platform enables the seamless fractionalization and tokenization of real-world assets (RWA), an industry expected to grow to over trillion in the next few years.

Mantra price forecast

Mantra’s OM token peaked at .0960 earlier this month and has now crashed by over 25% as the altcoin sell-off intensified. It has dropped below the important support level at , its highest swing on June 5.

The token has also moved below the 50-day and 100-day moving averages, a sign that bears are taking control. It was trading at .8095 but has failed to move below that level since June 3. This level is also important because it was the highest swing in April and May.

Therefore, a drop below that level will point to more downside since it will signify that bears have prevailed. If this happens, it could drop to .7620.

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Theo Crypto News

Mistral AI surges: How $640M could shake up AI, crypto, and big tech alliances

Is the intersection of Mistral AI’s funding a glimpse into the future of decentralized finance and AI-powered technologies?

Mistral AI, a French tech startup, has recently concluded a large funding round, raising €600 million (approximately 0 million). This funding, a blend of equity and debt, has raised Mistral AI’s valuation to billion.

Founded just over a year ago, Mistral AI specializes in developing AI models, similar to those used by industry leaders like OpenAI, valued at over billion.

These AI models, known for their applications in chatbots and other AI-driven services, require large investments in advanced infrastructure, such as Nvidia’s high-performance semiconductors.

Mistral AI has attracted substantial attention and support, as evidenced by previous investments from major entities, such as Microsoft’s million investment in February 2024.

Moreover, Mistral AI has taken steps towards openness and collaboration by releasing several of its AI models under open-source licenses, enabling developers worldwide to leverage and build upon Mistral AI’s technology.

Beyond financial achievements, Mistral AI’s partnerships with cloud providers like Microsoft Azure cement its strategy to integrate AI solutions into diverse technological ecosystems and expand its global footprint in the competitive AI market.

But what does it mean for the crypto market, and why should you take notes? Let’s find out.

How does it impact crypto?

Mistral AI’s recent funding round highlights the increasing demand for advanced AI technologies, which aligns with the infrastructure needs of global crypto mining operations. 

As AI models continue to evolve, necessitating high-performance semiconductors and extensive data processing capabilities, the synergy with crypto mining — also reliant on powerful computing power and secure data management—becomes increasingly apparent. This commonality could lead to opportunities for resource sharing and collaboration between the two industries.

Simultaneously, the integration of AI with blockchain presents promising opportunities for cryptocurrencies. Blockchain’s decentralized structure and transparent ledger system provide solutions to challenges such as data security and transparency in AI applications. 

This alignment not only enhances the reliability of AI systems but also stimulates innovations in the crypto space, potentially improving efficiency and security across decentralized finance (DeFi) platforms.

Juan Leon, a senior crypto research analyst, projects the economic impact of this convergence, suggesting that AI and crypto combined could contribute up to trillion to the global GDP by 2030. 

Practically, Mistral AI’s funding is just a starting point that could accelerate developments in AI infrastructure, potentially increasing demand for computational power and data storage—and aligning more closely with the similar needs of the crypto sector.

Giants watching and making moves

At the recent Cornell Blockchain Conference, Microsoft’s Yorke Rhodes discussed the evolving relationship between AI and blockchain. 

He hinted at the prospect of AI-powered agents leveraging blockchain’s capabilities, signaling the early stages of exploration in this convergence.

Microsoft’s approach involves optimizing existing technologies rather than developing foundational blockchain infrastructure (L1). Rhodes cited their focus on enhancing efficiencies, such as through layer-2 blockchain rollups, which streamline transactions and improve scalability.

Industry voices, including Matt Stephenson from Pantera Capital, also agreed on cryptocurrencies in supporting AI advancements. Stephenson mentioned that crypto could serve as a fundamental infrastructure for AI models, particularly transformative and diffusion models. 

These dynamics intensify with OpenAI’s role, recently embroiled in partnerships with Apple that could redefine industry alliances. 

Recent reports suggest the integration of OpenAI services into Apple products. Microsoft, a key investor in OpenAI, has been watching these developments closely. 

The strategic implications for Microsoft are clear: a successful Apple-OpenAI alliance could potentially disrupt Microsoft’s own AI initiatives, prompting a careful reevaluation of their competitive strategy in AI and cloud computing, and crypto could become a sidekick in this exercise.

The road ahead

As AI and crypto technologies continue to evolve, their combined impact on global economies will likely be far-reaching. From enhancing operational efficiencies to promoting innovation and economic growth, these technologies could reshape how companies and economies function and conduct business.

In addition, there is brewing tech rivalry between giants that might adopt various use cases of blockchain and AI to become more competitive. 

Microsoft is still reeling from the alliance of Apple and OpenAI, which could alter the dynamics at play, while Google watches from a distance, making the interplay even more interesting.

It’s fair to conclude that things are accelerating at full force, and the funding in Mistral AI is one of the starting points of a large showdown that is yet to happen.

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Theo Crypto News

TAI price analysis as TARS Protocol launches Solana AI fund

TARS Protocol price bounced back on Friday after the developers launched an ecosystem fund as they seek to grow the network. TAI was seen recently trading at the important resistance level of .20, which was higher than the intraday low of .15.

TARS Protocol has launched an AI fund as it seeks to grow its market share in the industry. In a statement, the developers said that they will provide 10 million TAI tokens, currently equivalent to million.

The company will make investments in developers building solutions in industries like Decentralized Public Infrastructure (DePin), retail products, finance, e-commerce, and others.

This statement came a few days after the creators unveiled the TARS Incubation program, which seeks to showcase Solana projects using artificial intelligence (AI). TARS Protocol has also partnered with leading companies in the crypto industry like Bybit, DojoSwap, and BitPanda. As part of its ByBit listing, the company will give away 10 million TAI tokens to over 37,000 winners.

TARS Protocol is a new project on Solana that aims to provide a bridge between artificial intelligence (AI) and Web3. It will do that by providing a unified platform for AI-powered tools and services. It was launched at a time when demand for AI solutions is exploding around the world. Nvidia has become a trillion company by providing AI semiconductors. Just this week, Apple became the biggest company in the world after launching its Apple Intelligence features.

Developers have also launched numerous AI projects, with Fetch.ai being the biggest one. Fetch, SingularityNET, and Ocean Protocol will complete their merger in July, a move that will create the biggest AI platform in the blockchain industry.

TARS Protocol price forecast

The 4 hour chart shows that the TAI price peaked at .2890 earlier this week and then retreated as other altcoins pulled back. 

At press time, the token was consolidating at the 50-period and 25-period moving averages. The MACD’s histogram has moved above the neutral point while the two lines have made a bullish crossover pattern.

Most importantly, TAI has formed a falling broadening wedge chart pattern, a popular bullish sigm. Therefore, the token will likely have a bullish breakout as buyers target the all-time high at .2890. This view will be confirmed if the token jumps above the key resistance at .2090, its highest point on May 20th.

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Theo Crypto News

DADDY token price analysis: Andrew Tate’s crypto forming a risky pattern

DADDY, a new token associated with Andrew Tate, has retreated in the past few hours. The token was trading at SOL 0.2563 on Friday, down from its all-time high of SOL 0.3625. 

DADDY remains a notable cryptocurrency with a market cap of over 0 million. The token has done well since its launch because of the popularity of Andrew Tate, a provocateur with over 9.6 million X (Twitter) followers. It has also done well because of the rising number of users which stands at more than 25,000.

The biggest holder is in control of more than 20 million tokens while the second and third holders are sitting on approximately 17.2 million and 16.1 million, respectively. This may be a red flag given an unfortunate trend of insider activity and market manipulation within the celebrity-backed tokens space.

Is DADDY coin a good investment?

Celebrity tokens, like other meme coins, have made a few lucky people very rich if their timing is right. Traders have been known to make large profits trading meme coins like Pepe and Floki. However, celeb meme coins will most likely have a shorter lifespan than well-established cryptocurrencies like Solana and Ethereum. Just a few weeks ago, singer Davido’s token rose and then imploded within a few days.

This week, Rapper Iggy Azalea’s MOTHER token has crashed by over 50% from its all-time high — and this trend may continue with DADDY.

Therefore, fundamentally, the DADDY token will likely fall over the longer term as most of its holders exit their positions. The same happened with celeb non-fungible tokens (NFTs), many which have become almost worthless. 

Still, shorting meme coins like DADDY could be risky because of the hype surrounding them and the possibility of market manipulation. 

DADDY token price forecast

On the hourly chart, we see that the DADDY/SOL token peaked at 0.3515 on Thursday, where it formed a double-top chart pattern whose neckline was at 0.1876. In price action analysis, a double top pattern is one of the most bearish signs in the market.

The chart also shows that the token’s volume has crashed hard while its price has moved below the 25-period and 14-period Exponential Moving Averages (EMA). 

Therefore, the token’s outlook is bearish, with the initial target being the double-top’s neckline at 0.1876. A break below that level will see it tumble to the next level at 0.1500.

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Theo Crypto News

MicroStrategy upsizes convertible offering to $700m to buy Bitcoin

MicroStrategy has revealed the pricing of its convertible senior notes offering of 0 million.

The announcement comes a day after the company outlined an initial 0 million offering, with this latest press release noting an upsize to 0 million aggregate principal amount of notes. MicroStrategy expects the offering to close on June 17, 2024.

“The notes will be unsecured, senior obligations of MicroStrategy, and will bear interest at a rate of 2.25% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2024,” the company wrote.

Notes mature on June 15, 2032, unless there’s an early repurchase, redemption or conversion.

MicroStrategy reveals pricing for its convertible notes offering

According to the firm’s statement published on June 14, the notes’ conversion rate is set at 0.4894 shares of MicroStrategy’s class A common stock per ,000 principal amount of notes.

This will be equivalent to approximately ,043.32 per share and represent a 35% premium over the U.S. composite volume-weighted average price (VWAP) of the company’s stock on Thursday, June 13, 2024. That price stood at ,513.46.

In its update, MicroStrategy said the 0 million raise offers qualified institutional buyers the option for an additional 0 million. The initial offer on June 13 highlighted an additional million of the aggregate principal amount.

On Thursday, MicroStrategy announced it was redeeming 0 million of convertible notes due in 2025, with all conversion requests settled in shares. The redemption date is July 15, 2024. 

0m to buy Bitcoin

The company anticipates a total raise of 7.8 million, or up to 6.0 million should initial buyers fully exercise the option to acquire additional notes.

As noted on Thursday, MicroStrategy plans to use proceeds of the notes offering to purchase additional Bitcoin (BTC). Currently, the company holds 214,400 BTC, the largest by a corporate entity outside of the massive trove that supports BlackRock’s spot ETF.

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Theo Crypto News

Privacy expert slams WhatsApp and Telegram, touts decentralized messaging as future

In an exclusive interview with crypto.news, Kee Jefferys, CTO of Session, discussed the inherent risks to privacy with centralized messaging platforms.

As our world becomes increasingly connected, privacy has transformed from a luxury into a necessity. Every click, every message, every digital interaction is a potential leak, spilling secrets into a sea of data ready to be harvested. 

Messaging apps, which are integral to our daily communication, are facing growing scrutiny over their privacy practices.

Yet, incidents like those involving WhatsApp and Telegram—where breaches and metadata mishaps have eroded trust—spotlight the fragile nature of privacy in traditional platforms. 

Such episodes constantly remind us of the vulnerabilities that users face daily, exposing them to potential profiling and surveillance, undermining trust.

Enter web3, a beacon of hope, promising a paradigm shift towards decentralization. This new technology framework seeks to dismantle the centralized powers that traditionally govern our data, proposing instead a system where privacy is inherent, not optional. 

Jefferys, through his work with Session, champions this vision, employing a network of community-run nodes to safeguard user interactions without the need for a central authority.

He believes that a decentralized approach is crucial for creating a new trust model. One that doesn’t rely on centralized entities but distributes responsibility across a network of independent operators.

With the recent security breaches and metadata collection issues in messaging apps like WhatsApp and Telegram, what are the risks currently plaguing users in the traditional messaging app sector, particularly in terms of privacy?

Traditional messaging apps like WhatsApp and Telegram are inherently centralized, creating honeypots of sensitive metadata, such as phone numbers, IP addresses, and profile images. This data can be linked with other metadata, like message timing and group membership, to create detailed profiles of users, their habits, and relationships. Although these services claim not to engage in such profiling, they possess the data and access to do so, and this data could be leaked or accessed by hackers or compelled by authorities. To enhance privacy, we need systems that minimize data collection and centralization.

Law enforcement agencies access user data from secure messaging apps through metadata and cloud backups. How would web3 address this? Do you expect a potential backlash from regulators as these solutions surface?

Cloud backups are a convenient feature usually facilitated by device manufacturers like iCloud for iOS and Google One/Drive for Android. Messaging app publishers can mitigate risks created by these cloud backup services by opting out of automatic backups and instead using custom-built decentralized storage networks like Arweave or Filecoin, which don’t implement regulatory backdoors for mandated access. Regulators and law enforcement typically focus on device seizures during investigations, which would reveal similar content to what could be obtained from cloud backups, so this shift may not cause significant regulatory issues.

How does the decentralized nature of web3 technologies specifically address the privacy and trust issues that traditional messaging apps struggle with? 

In the most fundamental way, decentralization creates a new trust model that shares the burden and responsibility of trust among thousands of parties instead of a single entity and creates a rules-based system to govern this new trust model. It eliminates centralized honeypots of user metadata and instead distributes user data, making it nearly impossible to gain a global view of the network. This means that instead of compromising a single entity, one would need to compromise thousands of individual operators to access user data.

What do you see as the future of secure messaging in the context of increasing government surveillance and cyber threats? 

Most efforts in the secure messaging space have focused on securing the contents of messages via more advanced end-to-end encryption schemes, often at the expense of user experience. I think in the next 10 years, the space as a whole will focus more on metadata protection as end-to-end encryption becomes a more solved problem and governments move to even wider-scale metadata collection. The name of the game will no longer be content, it will be context.

How can web3 and decentralized technologies overcome the existing flaws and shape a more secure future for messaging apps?

Web3 and decentralized technologies can overcome flaws by breaking the trust assumptions of centralized messengers and proving that usability does not need to be sacrificed for privacy or decentralization.

Session claims to offer a ‘trustless’ messaging environment. Could you explain how Session’s architecture addresses the specific privacy flaws found in traditional messaging apps, ensuring that user data remains private and secure without requiring users to place their trust in a central authority? 

Instead of relying on a centralized server, when a user sends a message on Session, they interact with a network of community-run nodes called the “Service Node network.” This network has over 2,000 nodes, which store and route the encrypted data of Session users. This architecture ensures that user data remains private since there’s no central location to collect user messages. Trust is maintained purely between the network and its users without any central authority or middleman to govern this process.

What mechanisms does Session use to protect user privacy?

There’s 4 main things Session does to protect user privacy; No phone number or personally identifiable information is required to sign up—just generate a Session ID and start messaging. All messages are end-to-end encrypted using an audited encryption protocol and open-source clients. Session uses onion routing to hide users’ IP addresses while using the service. A decentralized network is used for temporary storage, eliminating the need to trust a central service provider.

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Theo Crypto News