Welcome to The Protocol
CoinDesk’s weekly wrap-up of the most significant developments in cryptocurrency technology is here. I’m Ben Schiller, your guide through this week’s highlights.
In this issue:
- Vana introduces a new token standard
- Hashgraph set to launch private blockchain
- ASIC miners evolve to resemble servers
- An exclusive interview with Gensyn’s Ben Fielding
This article is featured in the latest issue of The Protocol, our weekly newsletter that delves into the technology behind cryptocurrency, one block at a time. Sign up here to receive it directly in your inbox every Wednesday.
Network News
VANA’S DATA-BACKED TOKEN STANDARD:
Crypto enthusiasts are likely familiar with the ERC-20 token standard, which establishes guidelines to ensure that tokens created on the Ethereum smart contract blockchain can seamlessly interact with other tokens and applications within the ecosystem. Recently, Vana, an EVM-compatible Layer 1 blockchain focused on enabling users to monetize their personal data through DataDAOs for AI model training, unveiled a similar standard for data-backed tokens known as VRC-20. Launched earlier this week, this new standard aims to enhance trust and transparency in the market for data-backed digital assets. The VRC-20 standard incorporates essential criteria such as fixed supply, governance, and liquidity rules, while ensuring real data access by linking tokens to actual data utilities. Furthermore, it encourages continuous liquidity through rewards that stabilize the market. “This isn’t speculation. This is the financialization of data in action,” Vana emphasized on X. Since its mainnet launch in December, VANA, the native cryptocurrency of the network, has facilitated the onboarding of over 12 million data points across various DataDAOs, showcasing a robust demand for user-owned data. DataDAOs, or data liquidity pools, function as decentralized marketplaces that bring data on-chain as transferable digital tokens, allowing for the tokenization and utilization of data in applications such as AI model training. — Omkar Godbole Read more.
HASHGRAPH LINES UP Q3 PRIVATE CHAIN:
Hashgraph, the innovative blockchain development firm behind the Hedera (HBAR) network, is gearing up to introduce a private, permissioned blockchain tailored for enterprises operating in heavily regulated sectors, with a debut planned for the third quarter of 2025. This new initiative, named HashSphere, aims to bridge the gap between private and public distributed ledgers, ensuring compliance with stringent regulations while maintaining interoperability. The company announced on Monday that HashSphere will cater to asset managers, banks, and payment providers seeking secure, cost-effective cross-border transactions utilizing stablecoins. While public blockchains excel in security and transparency, enterprises in finance and payments often grapple with compliance hurdles, particularly regarding KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations. HashSphere addresses these challenges by granting access solely to verified participants, enabling companies to develop tokenized assets, AI-driven services, and other blockchain-based solutions while adhering to regulatory frameworks. The platform will also incorporate Hedera’s existing tools, including the Token Service for managing digital assets and the Consensus Service for recording transactions with trusted timestamps. Developers will find the platform compatible with the Ethereum Virtual Machine (EVM), facilitating the deployment of decentralized applications using Solidity and other EVM languages. — Kris Sandor Read more.
ASICS TO BE MORE LIKE SERVERS:
In the early days of cryptocurrency mining, the landscape began with CPUs and eventually evolved to GPUs for bitcoin mining. By 2013, the introduction of ASICs (Application-Specific Integrated Circuits) marked a significant shift, characterized by the iconic “shoebox” design synonymous with the bitcoin mining industry. So, what does the future hold? ASIC manufacturers are increasingly pivoting towards a hydro-cooled server rack design, which is anticipated to constitute a substantial segment of bitcoin mining fleets, leveraging “direct-to-chip” cooling for enhanced efficiency. Just last September, Bitmain unveiled its U3S21EXPH model, developed in collaboration with Hut 8, featuring a U3 design that occupies three spaces in a standard server rack. MicroBT quickly followed suit with its M63 Hydro series, and Bitdeer introduced its Sealminer A2 Hydro unit. Auradine also entered the fray with its server rack model, the AH3880, launched in March. This model, which occupies two server slots, boasts impressive performance metrics, achieving 600 TH/s (or 300 TH/s per slot), outperforming Bitmain’s 860 TH/s (286.66 TH/s per slot). The advantages of a server rack ASIC lie in its standardization. Bitcoin miners are increasingly aligning with practices from the traditional datacenter industry, which is projected to see a 40% adoption rate of direct liquid-to-chip cooling by 2026, as reported by data center developer Cyrus One. Should miners embrace this design, they could potentially optimize their supply chains by converging on server designs that are becoming industry best practices in the datacenter sector. — Colin Harper, Blockspace Read more.
GENSYN CEO BEN FIELDING:
A decade ago, Ben Fielding was a budding AI researcher embarking on his PhD journey, exploring the fascinating concept of “swarms” of AI—clusters of diverse models that could communicate and learn from one another, potentially enhancing the collective intelligence. However, he encountered a significant obstacle: the limitations of the noisy machinery at his desk. He quickly realized he was outmatched by the resources of tech giants like Google. Compute constraints were an enduring challenge, he acknowledged. The breakthrough? Decentralized AI. In 2020, Fielding co-founded Gensyn, alongside Harry Grieve, long before decentralized AI became a trending topic. Initially recognized for its efforts in building decentralized compute solutions, Gensyn’s vision has expanded to encompass a broader scope: “The network for machine intelligence.” They are developing tools across the entire tech stack. Now, nearly ten years after Fielding’s initial frustrations with the noise of his desk, Gensyn’s early tools are making their mark. The company recently launched its “RL Swarms” protocol, a descendant of Fielding’s PhD research, and has introduced its Testnet, integrating blockchain into the mix. In a conversation with Jeff Wilser, Fielding discussed AI Swarms, the role of blockchain in the ecosystem, and emphasized the notion that all innovators—regardless of size—“should have the right to develop machine learning technologies.” — Jeff Wilser
In Other News
- Web3 currently lacks a dedicated memory layer, leading to inefficiencies and scalability challenges in its architecture. Random Linear Network Coding (RLNC) presents a promising solution by enhancing data propagation and storage efficiency within decentralized systems. Implementing RLNC can effectively address Web3’s scalability issues by optimizing memory and data access without compromising the core principle of decentralization, according to Muriel Méard, co-founder of Optimum. Read her insightful op-ed here.
- Ripple, an enterprise-focused blockchain service closely associated with the XRP Ledger (XRP), announced on Wednesday the integration of its stablecoin into its cross-border payments system to drive adoption for Ripple USD (RLUSD). Selected customers of Ripple Payments, including cross-border payment providers BKK Forex and iSend, are already utilizing the stablecoin to enhance their treasury operations. Ripple aims to further broaden the availability of this token among its payment clients. Recently, RLUSD achieved a market capitalization of $244 million, reflecting an 87% growth over the past month. — Kris Sandor reports.
Regulatory and Policy
- The U.S. Securities and Exchange Commission (SEC) has either dropped or paused over a dozen ongoing cases (and has lost one) since U.S. President Donald Trump was reinstated just over two months ago and appointed Commissioner Mark Uyeda as acting chair. Here’s a detailed rundown of what remains on the SEC’s enforcement docket. — Nik De reports.
Calendar
- April 8-10: Paris Blockchain Week
- April 30-May 1: Token 2049, Dubai
- May 14-16: Consensus, Toronto
- May 20-22: Avalanche Summit, London
- May 27-29: Bitcoin 2025, Las Vegas
- June 30-July 3: EthCC, Cannes
- Oct. 1-2: Token2049, Singapore
