2023 Blockchain Predictions: Binance tops the list

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It won’t be an exaggeration to say that the year 2022 could be the worst year the digital asset market has seen since Bitcoin was launched in 2009. On top of the crypto prices crashing – Bitcoin alone had a total of $195 billion in realized losses in 2022 — Centralized Crypto Exchanges , and firms filing for bankruptcy, and crypto and NFT trading plummeted, the year ended with the sensational collapse of FTX and its FTT coin.

So it’s not a surprise that policy-making bodies and law enforcement agencies tightening the noose on crypto-criminals will be at the top of 2023 blockchain predictions. Calvin Ayre, publisher, gambling industry pioneer and founder of global investment firm Ayre Group and crypto conglomerate CoinGeek, predicted that in 2023 regulators and law enforcement agents will finally crack down on “layer 1 fraud” before moving on to the “deeper, more” insidious layer 2 fraud.”

The pending collapse of Binance

Regulators can barely lift their heads after their failure to prevent crypto users and investors from losing hundreds of billions of dollars in cases like Terraform Labs, CelsiusNetwork, Forsage and FTX. And what better way to redeem himself than to successfully sue Binance, one of the top five crypto firms in the world.

“Binance seems like the logical place for them to start their revenge tour, especially given the pre-Christmas revelation that Binance US – the supposedly independent US regulatory body – was routinely transferring billions in customer funds to and from wallets linked to Binance’s international operations,” wrote Ayre in his 2023 blockchain predictions.

John Reed Stark, former head of the United States Securities and Exchange Commission (SEC) Office of Internet Enforcement and president of cybersecurity and incident response firm John Reed Stark Consulting, agrees with Ayre. Stark also predicted that Binance will collapse in 2023 if it does not overcome “mammoth” challenges.

For Binance to remain in business, it must provide legally valid financial audits and proof of reserves, have the Binance stablecoin (BUSD) to hold, prevent mass withdrawals, and prevent the US Department of Justice from being able to file charges against the exchange and its leaders. These hurdles are particularly tough to overcome as most are beyond Binance’s control. Using public relations and spending millions to hire supposed experts may not do the trick.

Create 2 scams

Unlike layer 1 scams that target crypto users and investors, layer 2 scams involve manipulating the technology behind crypto, which is blockchain. While all digital assets are built on a blockchain, it is something that can be used as a foundation for other emerging technologies, such as the metaverse, artificial intelligence (AI), IPv6 and Web3.

“While the ‘Tier 1’ fraudsters have done significant damage to millions of retail investors around the world, the damage pales in comparison to the damage done to society as a whole from ‘Tier 2’ fraud,”

Ayre explained.

“Because this larger fraud threatens to hold back progress in the form of Web3 projects that will allow individuals to wrest control of their online data from today’s Web2 giants and the payment infrastructure that supports them,” Ayre added.

Hindering the development of blockchain to benefit a few large companies and businesses or to hide the fact that their blockchains do not scale will prove to be more disastrous than losing trillions of dollars because it will delay what people have called the fifth the revolution.

The scalability of the blockchain is something that Bitcoin White Paper author Satoshi Nakamoto has reiterated many times, stating that scaling is critical to the survival of Bitcoin. However, the Bitcoin Core (BTC) network continues to refuse to scale, instead modifying the original Bitcoin protocol to maintain its 1MB block size and throughput of just 7 transactions per second (tps) – numbers that were intended by Satoshi Nakamoto as just a starting point.

While BTC prides itself on being a speculative investment in the form of “digital gold” that only the wealthy few can afford, those who believe in Satoshi Nakamoto’s vision that Bitcoin is for everyone to use have established the Bitcoin Satoshi Vision (BSV) in 2018. Since then, the BSV network has restored the original Bitcoin protocol and unlocked unlimited scaling.

This means that block sizes and throughput can be increased according to market demand. This not only minimizes network latency and failed transactions, but also lowers transaction fees to tiny fractions of a penny. Currently, BSV processes 4 GB blocks at an average of 20,000 tps at $0.00015 per transaction.

In numbers, it is obvious that BSV Blockchain can provide the greatest benefit to many global industries due to its ability to handle huge amounts of data and an extremely high throughput at fees that are next to nothing. However, BSV’s efficiency and practicality have been denied by major players in the industry to justify the blockchain’s expensive transaction fees, network crashes and latency, and highly volatile crypto prices.

As regulators and law enforcement agents delve deeper into Tier 2 fraud, Ayre predicts that these centralized crypto firms and exchanges, as well as the credit card networks that work with them, will eventually be filtered out one by one.

“Thinning this herd will allow the market to see BSV for what it is: a regulatory friendly and legally compliant blockchain that can act as both the backbone of the Web3 revolution and an environmentally friendly data store without peer. A little late, in my opinion, but better late than never.”

Ayre concluded.

The world is largely anticipating the launch of a functioning metaverse with high resolution and a faster Internet in the form of Web3 powered by blockchain and IPv6. AI and other technologies only depicted in sci-fi movies will soon follow. And these will all be possible if layer 2 fraud is eliminated and blockchain is developed and utilized properly. If Ayre in his 2023 blockchain predictions, then there is a lot to expect this year.

*This article was paid for. Cryptonomist did not write the article or test the platform.