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Academy Industry Analysis Article
OKEx Insights Institutional investment NFT News of the Week DeFi

Twitter to support NFTs, Visa developing cross-chain CBDC protocol

2021.10.02 Adam James

Visa deployed its first-ever smart contract to the Ethereum Ropsten testnet. 

It's been a big week for Ethereum-related news in the blockchain and cryptocurrency industry. While Twitter has revealed plans for NFT support, a bug in Ethereum-based decentralized finance protocol Compound Finance caused some $50 million to be incorrectly awarded. Additionally, demand for Art Blocks Curated caused an Ethereum block-reorg — with some users having their successful mints retroactively denied.

Here's everything you need to know about these stories, and more, in this week's edition of OKEx Insights' News of the Week.

Visa develops conceptual CBDC protocol

Visa has developed a conceptual protocol meant to illustrate how central bank digital currencies may be interoperable for payments. The payments giant's Universal Payments Channel demonstrates how multiple blockchains can be connected for CBDC transfers via Visa.

Key takeaways

  • Visa's Universal Payments Channel shows how the American multinational financial services corporation is committed to a future in which digital currencies become standard.
  • In developing UPC, Visa also deployed a smart contract on Ethereum's Ropsten testnet — a first for the crypto-interested company (which also holds a CryptoPunk).

Compound bug misrewards more than $50 million 

A bug in Compound Finance's new upgrade has rewarded some users with large amounts of COMP. While Proposal 62 was meant to split liquidity providers' and borrowers' COMP distribution using a new ratio, as opposed to the older 50/50 model, some users have reportedly been able to claim upward of $50 million worth of COMP tokens, combined.

Key takeaways

  • Because the Comptroller contract address does not contain a limitless quantity of COMP tokens, the worst-case scenario totals a maximum of 280,000 tokens — or roughly $80 million.
  • Protocol changes to the DeFi interest rate protocol require a seven-day governance process, so a patch will take at least a week.
  • Regarding the bug, Compound Labs founder Robert Leshner tweeted a threatening tweet, which read: "If you received a large, incorrect amount of COMP from the Compound protocol error: Please return it to the Compound Timelock (0x6d903f6003cca6255D85CcA4D3B5E5146dC33925). Keep 10% as a white-hat. Otherwise, it's being reported as income to the IRS, and most of you are doxxed." The tweet did not sit well with the wider cryptocurrency community — prompting something of an apology roughly two hours later.

Twitter reveals in-development NFT support

Thanks to a video shared by Twitter's head of consumer product marketing, we have confirmation that the social media giant is developing tools for users to verify profile pictures that are nonfungible tokens. The video shows the company's senior software engineer, Mada Aflak, choosing a new profile photo by connecting a digital Web 3.0 wallet — with the end result being a blockchain checkmark verifying that it belongs to the user on-chain.

Key takeaways

  • In addition to verifying NFT profile pictures, Twitter also plans to allow users to display their nonfungible token collection via a dedicated "Collectible" menu option.
  • Twitter continues to be very crypto-forward. The latest NFT update from the company comes shortly after its rolling out of BTC tipping to iOS users.

Art Blocks Curated demand causes Ethereum block-reorg

Demand for Piter Pasma's Skulptuur NFT collection on Art Blocks Curated led to a block-reorg on the Ethereum network this week — meaning some users who minted tokens ultimately did not mint any tokens. An Art Blocks representative confirmed the issue on Discord shortly after the auction.

Key takeaways

  • Small reorgs happen to blockchains somewhat frequently and are generally inconsequential. In the case of NFT mintings, however, users can retroactively miss out on tokens they successfully minted pre-reorg.
  • Art Blocks has little to no control over reorgs but is hoping to fix such issues from happening again through an updated user interface.
  • The incident further proves how Ethereum miners have an unfair advantage when it comes to high-profile NFT minting events.

Ethereum researcher pleads guilty after North Korea talk

After being formally indicted for violating U.S. sanctions laws in North Korea for talking about blockchain and cryptocurrencies, Virgil Griffith has pleaded guilty. The Ethereum researcher was alleged to have "provided highly technical information to North Korea, knowing that this information could be used to help North Korea launder money and evade sanctions."

Key takeaway

  • For violating the International Emergency Economic Powers Act, Griffith is facing up to 20 years in prison.

OKEx Insights presents market analyses, in-depth features and curated news from crypto professionals.

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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