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CHINA’S METAVERSE THROUGH RED-COLORED HEADSETS
Innovation requires a certain amount of freedom and incentive. Perhaps that’s why China has to engage in such massive IP theft around the world.
They definitively cracked down on cryptos in 2021, clearing out bitcoin mining operations, after years of threats, to make way for their digital surveillance and control CBDC Yuan.
Lately, they’ve been reportedly working hard on “decentralized” database technologies (DLTs) devoid of cryptocurrencies…without explaining how incentives and benefits of running nodes and carrying out network tasks is accomplished.
Now comes news out of Wuhan—yes, that Wuhan, known for innovating manmade gain-of-function COVID viruses—that Chinese engineers are leaving NFT technology out of their metaverse plans.
A section on NFTs was included in the Wuhan government’s draft industrial strategy for the growth of the city’s metaverse economy. But this past week, according to the South China Morning Post, as reported by cointelegraph.com, language about NFTs has been removed.
The amended version still urges companies to concentrate on decentralized technology and Web3.
But NFTs, which encompass much more than just verifiable custody chains and reward mechanisms for digital art, are not part of Wuhan’s metaverse picture.
Cointelegraph noted that the amended text appears to have eliminated anything that pertains to the trading of tokens or digital assets.
Metaverse innovations proposed in various Chinese cities, including the capital Beijing and Shanghai, that have any connections to IT companies engaged in NFT innovations meet with government hostility.
It’s another example where supposedly freer western economies might, if they chose, take advantage of an opportunity to leverage innovative technologies that the Chinese system cannot risk or allow.
Unfortunately, the U.S. and Europe have offered their own variations of murky regulations, and unproductive enforcement actions (especially in the case of the a years-long SEC lawsuit against Ripple Networks).
Whether a new Congress will move quickly to provide more regulatory clarity and an environment that embraces the efficiencies and potentials that crypto technology represents, is a big question.
For related articles, see:
- “CHINA BUSINESS ESPIONAGE NETS $500 BILLION A YEAR” (29 Jun 2021)
- “CHINA “TALENT PROGRAM” GIFTED AT STEALING AMERICAN IP” (26 Oct 2021)
- “OPERATION HARVEST MALWARE OUT TO STEAL AMERICAN IP AND MILITARY SECRETS, SAYS MCAFEE” (21 Sep 2021)
- “CHINA “INNOVATING” BLOCKCHAINS WITHOUT CRYPTO” (5 Jul 2022)
LBRY COURT CASE LOSS TO SEC A BAD SIGN
The Securities and Exchange Commission (SEC) won summary judgment in a case against LBRY blockchain—and the news sent crypto markets into deep red to start the week.
An “extraordinarily dangerous precedent,” was how a LBRY spokesperson reacted to the New Hampshire court ruling.
The SEC asserted that LBRY offered an unregistered security in violation of section 5 of the Securities Act of 1933.
1933. Let that sink in, as the court rejected LBRY’s argument that there was no existing case law sufficient for the court to rule in favor of the SEC, concerning novel aspects of crypto technology.
The court’s ruling, if it stands, means the U.S. regulator could make “every cryptocurrency in the U.S. a security, including Ethereum,” LBRY commented, while saying they were not giving up on the legal front.
Ethereum and other top cryptos were down nearly seven percent on Tuesday morning, following the Monday news.
According to Bitcoin.com, Judge Paul Barbadoro granted the SEC’s move for summary judgment notwithstanding LBRY’s claims that the blockchain token was not a security, but rather a crucial part of the LBRY blockchain network.
Some are already speculating that if the court’s rationale carries over to the Ripple Networks vs SEC case, the U.S. might create a yet another catastrophic self-inflicted economic disaster, on top of horrendous decisions regarding monetary policy, COVID War policies, and its exacerbation of the Russia-Ukraine conflict.
A new Congress might have something to say on the matter. If so, many feel they had better act soon, or crypto opportunities and innovations will flow elsewhere.
What Is LBRY?
LBRY is a blockchain focused on database storage and retrieval of digital content. It has the potential to provide censorship resistant storage for video platforms, ebook sellers, etc.
According to its website:
“LBRY is a new protocol that allows anyone to build apps that interact with digital content on the LBRY network. Apps built using the protocol allow creators to upload their work to the LBRY network of hosts (like BitTorrent), to set a price per stream or download (like iTunes) or give it away for free (like YouTube without ads). The work you publish could be videos, audio files, documents, or any other type of file.
Traditional video (or other content) sites such as YouTube, Instagram, and Spotify store your uploads on their servers and allow viewers to download them. They also allow creators to make some money through advertising or other mechanisms. However, there are some well-known drawbacks, especially for people whose material is perceived as not being advertiser-friendly.
LBRY aims to be an alternative to these sites, allowing publishers and their fans to interact directly without the risk of demonetization or other meddling.”
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