Welcome to The Protocol, your weekly overview of the most significant developments in cryptocurrency technology. I’m Ben Schiller.
In this edition:
- Vana introduces a new token standard
- Hashgraph is set to launch a private blockchain
- ASICs are evolving to resemble servers
- An interview with Ben Fielding of Gensyn
This article is part of the latest edition of The Protocol, our weekly newsletter that delves into the technology underpinning cryptocurrency, one block at a time. Sign up here to receive it directly in your inbox every Wednesday.
Network Updates
VANA UNVEILS DATA-DRIVEN TOKEN STANDARD: Cryptocurrency enthusiasts may be familiar with the ERC-20 token standard, which establishes guidelines to ensure that tokens created on the Ethereum blockchain can interact effectively with one another and with various applications. A parallel standard for data-backed tokens, referred to as VRC-20, has now been launched. Vana, an EVM-compatible Layer 1 blockchain that enables users to monetize their personal data by organizing it into DataDAOs for AI training, announced this new standard earlier this week to enhance trust and transparency in the marketplace for data-backed digital assets. The VRC-20 design includes specific requirements such as fixed supply, governance, and liquidity rules while ensuring genuine data access through the connection of tokens to actual data utility. It also encourages ongoing liquidity through rewards aimed at stabilizing the market. “This isn’t speculation. This is the real financialization of data,” remarked Vana on X. Having launched its mainnet in December with VANA as its native cryptocurrency, the network has since aggregated over 12 million data points across multiple DataDAOs, showcasing a robust demand for user-owned data. DataDAOs, or data liquidity pools, serve as decentralized marketplaces where data is brought on-chain as transferable digital tokens. DLPs are platforms for data contributions, tokenization, and preparation for usage in applications like AI model training.
HASHGRAPH PREPS FOR Q3 PRIVATE CHAIN: The blockchain development entity behind the Hedera (HBAR) network is creating a private, permissioned blockchain tailored for enterprises operating in highly regulated sectors, with an anticipated launch in the third quarter of 2025. Known as HashSphere, this network employs Hedera’s technology and aims to unify private and public distributed ledgers, ensuring adherence to regulatory standards while preserving interoperability. The organization indicated that it is targeting asset managers, banks, and payment providers looking for secure, cost-effective cross-border transactions using stablecoins. While public blockchains provide security and transparency, companies in sectors such as finance and payment systems frequently encounter compliance challenges, especially regarding Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. HashSphere addresses these hurdles by restricting access to verified participants, enabling firms to create tokenized assets, AI-driven services, and other blockchain-based products while ensuring alignment with regulation. The network will also integrate Hedera’s existing functionalities, including a Token Service for managing digital assets and a Consensus Service for recording transactions with reliable timestamps. Its compatibility with the Ethereum Virtual Machine (EVM) allows developers to create decentralized applications utilizing Solidity and other EVM-compatible languages.
ASICs ARE EVOLVING INTO SERVER-LIKE DESIGNS: Initially, bitcoin mining relied on CPUs, then GPUs, before ASICs emerged in 2013, characterized by their "shoebox" design that has become synonymous with the industry. So, what’s on the horizon? Increasingly, ASIC manufacturers are turning to hydro-cooled server rack configurations, which are expected to comprise a significant share of bitcoin mining operations, utilizing “direct-to-chip” cooling for enhanced efficiency. Last September, Bitmain revealed its U3S21EXPH model, developed in collaboration with Hut 8. Its U3 design occupies three slots in a standard server rack. Following this, MicroBT introduced its M63 Hydro series, along with Bitdeer’s Sealminer A2 Hydro model. Auradine also released its server rack model, the AH3880, earlier this March. Although smaller with a U2 design that occupies two slots, it offers a greater hashrate per unit space, achieving 600 TH/s (or 300 TH/s per slot) compared to Bitmain’s 860 TH/s (286.66 TH/s per slot). A key advantage of a server rack ASIC is standardization. Bitcoin miners are increasingly aligning with the traditional data center sector, which is forecasted to see 40% adoption of direct liquid-to-chip cooling by 2026. If miners embrace this design, they could potentially optimize their supply chains by conforming to server designs that are now viewed as industry best practices.
INTERVIEW WITH GENSYN CEO BEN FIELDING: A decade ago, as an aspiring AI researcher starting his PhD program, Ben Fielding investigated how "swarms" of AIs—groups of diverse models—could communicate and learn from one another to enhance overall performance. However, he faced limitations due to the noisy machine at his workstation. Recognizing that he was up against formidable competitors like Google and other tech giants, he understood that compute constraints would always be a challenge. The answer? Decentralized AI. In 2020, Fielding co-founded Gensyn (with Harry Grieve) at a time when decentralized AI was still in its infancy. Initially focused on developing decentralized computing, the project’s vision has expanded to encompass "the network for machine intelligence," creating solutions across various levels of the technology stack. Now, ten years after Fielding’s troublesome desk disrupted his lab mates, Gensyn’s early tools are being utilized. The company has recently introduced its "RL Swarms" protocol (a continuation of Fielding’s PhD research) and launched its Testnet, integrating blockchain elements. Fielding discussed AI Swarms, the role of blockchain, and emphasized that all innovators—not merely tech behemoths—"should have the right to build machine learning technologies."
In Other Developments
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Web3 currently suffers from a lack of a dedicated memory layer, resulting in inefficient architecture that hampers scalability. Random Linear Network Coding (RLNC) presents a potential solution by improving data propagation and storage efficiency in decentralized frameworks. By incorporating RLNC, Web3 can tackle scalability issues, optimizing memory and data access while maintaining decentralization, according to Muriel Méard, co-founder of Optimum.
- Ripple, a blockchain service aimed at enterprises that closely integrates with the XRP Ledger (XRP), announced on Wednesday that it has incorporated its stablecoin into its cross-border payments system to encourage adoption of Ripple USD (RLUSD). Selected Ripple Payments clients, including cross-border payment providers BKK Forex and iSend, are already utilizing the stablecoin to enhance their treasury operations. Ripple intends to broaden the availability of this token to additional payments customers, with RLUSD currently holding a market capitalization of $244 million, experiencing an 87% increase in the past month.
Regulatory and Policy Updates
- The U.S. Securities and Exchange Commission has either withdrawn or paused more than a dozen ongoing cases (and experienced one defeat) since President Trump reassumed office just over two months ago and appointed Commissioner Mark Uyeda as acting chair. Here’s a summary of the remaining items on the SEC’s enforcement agenda.