Welcome to The Protocol, CoinDesk’s weekly wrap-up of the most important stories in cryptocurrency tech development. I’m Ben Schiller.
In this issue:
- Vana launches token standard
- Hashgraph to debut private blockchain
- ASICs will look more like servers
- An interview with Gensyn’s Ben Fielding
This article is featured in the latest issue of The Protocol, our weekly newsletter exploring the tech behind crypto, one block at a time. Sign up here to get it in your inbox every Wednesday.
Network News
VANA’S DATA-BACKED TOKEN STANDARD: Crypto enthusiasts might be familiar with the ERC-20 token standard, which provides guidelines to ensure that tokens created on the Ethereum smart contract blockchain are compatible and can interact with other tokens and applications within the network. A similar standard for data-backed tokens, known as VRC-20, has emerged. Vana, an EVM-compatible Layer 1 blockchain that helps users monetize personal data by bundling it into DataDAOs for AI model training, introduced the new standard earlier this week to enhance trust and transparency in the market for data-backed digital assets. The VRC-20 standard features specific criteria such as fixed supply, governance, and liquidity rules while ensuring actual data accessibility by tying tokens to genuine data utility. Additionally, it promotes continuous liquidity through rewards that ensure market stability. “This isn’t speculation. This is real financialization of data,” Vana noted on X. With its mainnet launched in December and VANA serving as its native cryptocurrency, Vana has already onboarded over 12 million data points through multiple DataDAOs, demonstrating strong demand for user-owned data. DataDAOs or data liquidity pools are decentralized marketplaces that bring data on-chain as transferable digital tokens. DLPs facilitate the contribution, tokenization, and preparation of data for applications such as AI model training. — Omkar Godbole Read more.
HASHGRAPH LINES UP Q3 PRIVATE CHAIN: Hashgraph, the blockchain development firm focusing on the Hedera (HBAR) network, is building a private, permissioned blockchain for enterprises in highly regulated industries, with plans to debut in Q3 2025. HashSphere, built with Hedera’s technology, aims to bridge private and public distributed ledgers, ensuring compliance with regulations while maintaining interoperability, the company stated on Monday. Hashgraph aims to offer services to asset managers, banks, and payment providers seeking secure, cost-effective cross-border transactions with stablecoins. While public blockchains provide security and transparency, enterprises in sectors like finance often face compliance challenges, particularly concerning know your customer (KYC) and anti-money laundering (AML) regulations. HashSphere addresses this by restricting access to verified participants, enabling firms to develop tokenized assets, AI-powered services, and other blockchain-based products while adhering to regulatory standards. The network also incorporates Hedera’s existing tools, including the Token Service for managing digital assets and the Consensus Service for recording transactions with trusted timestamps. The platform’s compatibility with the Ethereum Virtual Machine (EVM) facilitates developers in deploying decentralized applications using Solidity and other EVM languages. — Kris Sandor Read more.
ASICS TO BE MORE LIKE SERVERS: Initially, bitcoin mining began with CPUs and later utilized GPUs. The introduction of ASICs in 2013 marked a turning point, but what’s next in this evolution? ASIC manufacturers are increasingly adopting hydro-cooled server rack designs, which constitute a significant portion of bitcoin mining fleets, utilizing “direct-to-chip” cooling for enhanced efficiency. Last September, Bitmain revealed its model U3S21EXPH, developed in collaboration with Hut 8, with a design that occupies three spaces in a traditional server rack. Following suit, MicroBT launched its M63 Hydro series, along with Bitdeer’s Sealminer A2 Hydro unit. Auradine’s recent release of its server rack model, the AH3880, occupies two server slots and offers enhanced hashrate efficiency at 600 TH/s (or 300 TH/s per slot) compared to Bitmain’s 860 TH/s (286.66 TH/s per slot). The standardization offered by server rack ASICs aligns bitcoin miners more closely with the traditional data center industry, which could anticipate a 40% adoption rate of direct liquid-to-chip cooling by 2026, according to data center developer Cyrus One. If miners transition to this design, they could optimize supply chains by aligning with data center best practices. — Colin Harper, Blockspace Read more.
GENSYN CEO BEN FIELDING: Ten years ago, while starting out as an AI researcher, Ben Fielding investigated how “swarms” of AI could communicate and learn from one another to improve the collective whole. Unfortunately, he was limited by the capabilities of his machine and recognized that the compute constraints would always hinder him in comparison to Big Tech. The solution? Decentralized AI. In 2020, Fielding co-founded Gensyn (with Harry Grieve), initiating the project before Decentralized AI gained traction. Originally focused on building decentralized compute, the vision has expanded to encompass a broader goal: developing the “network for machine intelligence.” They are creating solutions across the tech stack, and now, a decade after Fielding’s early challenges, Gensyn has released its “RL Swarms” protocol (a continuation of his PhD research) along with its Testnet, incorporating blockchain elements. Fielding discussed AI Swarms, the integration of blockchain, and the imperative that all innovators should have the right to develop machine learning technologies. — Jeff Wilser Read more.
In Other News
Web3 currently lacks a dedicated memory layer, rendering its architecture inefficient and challenging to scale. Random Linear Network Coding (RLNC) presents a solution by optimizing data propagation and storage within decentralized systems. Implementing RLNC can effectively tackle Web3’s scalability issues by enhancing memory and data access without compromising decentralization, according to Muriel Médard, co-founder of Optimum. Read her op-ed here.
Ripple, a blockchain service associated with the XRP Ledger (XRP), announced on Wednesday the integration of its stablecoin into its cross-border payments system to enhance the adoption of Ripple USD (RLUSD). Select customers, including cross-border payment providers BKK Forex and iSend, have begun utilizing the stablecoin to optimize their treasury operations. Ripple aims to broaden the availability of RLUSD among payment customers, which recently reached a $244 million market capitalization, representing an 87% growth over the past month. — Kris Sandor reports.
Regulatory and Policy
The U.S. Securities and Exchange Commission has halted or paused over a dozen ongoing cases (and suffered one loss) since President Donald Trump took office roughly two months ago and appointed Commissioner Mark Uyeda as acting chair. Here is an overview of the current status of the SEC’s enforcement activities. — 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
