In the days following the recent US election victory of Donald Trump, cryptocurrency (especially Bitcoin) has stepped once again into the spotlight as the financial world prepares for what many are considering the most crypto-positive US administration yet.
With a campaign promise from July of this year, Trump notably said he would make the United States the “crypto capital of the planet,” creating a Bitcoin strategic reserve and making huge strides in regulation of cryptocurrency.
What is a Strategic Reserve?
Assets kept as strategic reserves are exactly what they sound like: Official assets held by the government as reserve stores of value and protection against inflation.
The United States’ Bullion Reserve is massive, containing approximately 8000 metric tons of gold in 2024. Other US strategic reserves include grain, natural gas and petroleum. SOURCE
An official Bitcoin Strategic Reserve would establish Bitcoin as a store of value on an internationally recognized scale, likely leading to some form of BTC accumulation race among the nations of the world.
The United States government already holds approximately 207,000 Bitcoin, SOURCE but as 2025 nears, it is becoming more likely that US BTC holdings will be ramped up to 1 million Bitcoin, which constitutes nearly 95% of its total supply.
With legislation already introduced that could initiate this ongoing BTC purchase, conditions are looking favorable for the US to elevate the status of cryptocurrency by accumulating and holding for years.
Many analysts speculate that US acquisition of Bitcoin as a strategic reserve would lead very quickly to other nation-states following suit. Bitcoin’s max total supply is only 21 million and its deflationary distribution to miners is halved every four years. If the United States adopts this strategic Bitcoin reserve plan, chances are good that the US will indeed be considered the “crypto capital of the planet,” as Donald Trump mentioned during his presidential campaign.
Bitcoin Legislation
Also in the wake of Trump’s victory, US states are now introducing legislation regarding the use of Bitcoin as a strategic reserve form of currency. Pennsylvania is the most notable example, having introduced new legislation last week.
On November 14th, the Pennsylvania House of Representatives introduced its own Strategic Bitcoin Reserve Act, a plan that would allocate up to 10% of state funds into BTC in order to protect against inflation and diversify its assets.
The Pennsylvania Strategic Bitcoin Reserve Act was written with the help of Satoshi Action Fund, a non profit crypto advocacy group that has created a model bill to introduce Bitcoin strategic reserve plans into state legislation, with Pennsylvania at the forefront of the newly unveiled plan.
In October, the Pennsylvania House also passed the Bitcoin Rights Bill, also created with the help of Satoshi Action Fund, with an overwhelming majority (176 to 26) from both sides of the aisle.
BREAKING: Pennsylvania has passed ‘Bitcoin Rights’ Bill in the House. 🇺🇸
This bill: — Protects residents' rights to self-custody — Ensures ability to use #bitcoin as a payment — Provides explicit guidelines around taxing transactions
Satoshi Action Fund is working with policy and lawmakers in multiple states to assist in establishing regulatory frameworks that will advance the adoption of cryptocurrency. Even during a contentious election year, rights and regulations for cryptocurrency owners have emerged as bi-partisan issues that both Democrats and Republicans view as worthy of time and attention.
According to the National Conference of State Legislatures, at least 35 states have crypto-related legislation either introduced or pending in 2024. SOURCE
The Bitcoin Act
First proposed in late July by Wyoming US Senator Cynthia Loomis, the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act is currently the clearest path to US adoption of the world’s original cryptocurrency on a massive scale that could be a game-changer for all Bitcoiners.
“Bitcoin is transforming not only our country but the world and becoming the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation. This is our Louisiana Purchase moment that will help us reach the next financial frontier.”
– Cynthia Loomis
If passed, the “BITCOIN Bill” would:
Establish a US “decentralized network of secure Bitcoin vaults.”
Implement a 1-million-unit Bitcoin purchase program to acquire 5% of total supply.
Be funded by diversification of existing funds in Federal Reserve and Treasury departments.
Affirm self-custody rights for private Bitcoin holders.
GalaChain is not in the business of predicting the future or speculating on token price action. Still, it’s plain to see that all this crypto news is closely related to the lasting adoption of web3 technology. When a leading economic force like the US government adopts Bitcoin as a strategic reserve currency and implements a state-of-the-art regulatory framework for crypto, a reasonable expectation is for other nations to follow that lead.
Historically, Bitcoin’s successes have usually flowed down into various altcoin projects as early adopters take and diversify projects into more specialized future use-cases.
Gala Loves Bitcoin
Without the pioneering vision of Bitcoin and its leadership on the road to web3’s mass adoption, GalaChain never would have been possible. We are building on the backs of giants, excited to bring the benefits of web3 to wider audiences in multiple industries and with the latest web3 tech advancements.
Whatever the future holds for Bitcoin and other cryptocurrencies, we look forward to new systems that empower users with more freedom and control than ever before.
While the rise of web3 has often been marked by hype and excitement, it’s the mundane use-cases that really move us toward the mass adoption of blockchain tech.
Blockchain – The Next Evolution
As we have often said, the road to mass adoption is a bumpy one. For the past several years, it’s been amazingly easy for many “normies” to write this new technology off as an overhyped trend, or (even worse) as some sort of gimmick. But as any of us who have been pioneering in this space since its earliest days can assure you, it’s anything but a gimmick.
Blockchain represents a fundamental shift in the way information is shared and managed in the digital era. In just a few short decades, computer technology has advanced in ways that previous generations couldn’t have imagined. The widespread adoption of new tools such as home computers and (more recently) smartphones has led to unprecedented levels of connectivity and a world of new possibilities.
Blockchain tech has the power and potential to decentralize numerous world industries, giving users power, freedom and control like they have never known. In the past, all consumers have been required to put their trust in companies whose coffers made it possible for them to take advantage of the latest technology. But as state-of-the-art tech has consistently been shared with consumers faster and faster, it is now possible for decentralized networks to take shape and start running things that were previously managed by centralized corporations.
Even while crypto and blockchain advocates have been talking for years about the seemingly endless quest for “mass adoption,” the growth of blockchain technology has ultimately been running its course like any technology. In reality, mass adoption of blockchain doesn’t rely on hype, trends or the enthusiastic endorsement of multimedia influencers and crypto personalities. In fact, it’s very possible that these evangelisticapproaches have slowed the march toward mass adoption rather than expedited it. When fanatics are shouting loudly with glitz and glamor, it’s easy for more discerning and pragmatic individuals to become skeptical.
Moore’s Law
In 1965, a man named Gordon E. Moore (co-founder of Intel) famously predicted that the number of transistors in computer chips would double approximately every 2 years.
While Moore initially expected this pattern to hold true for at least 10 years, it has consistently proven itself for more than five decades
In 2020, the total amount of data created, captured, copied and consumed globally was 64.2 zettabytes. This amounts to almost exactly 5 doublings, adhering quite precisely to Moore’s Law:
The decentralized power of blockchain systems is not in the identity of blockchain, but the benefits created by them. While in the early days of web3 it was possible to gather a certain degree of attention by labeling a project as “blockchain,” now it’s all about what your project can do, rather than how it was built.
In the same way that we are typically unable to see the internal operations of our computers and phones with our own eyes, there has never been a real need (beyond the trend) to peer under the surface of blockchain technology, at least for 99% of its users.
While the transparent Swatch with inner workings exposed had its glory day in the late eighties, most watch-wearers would prefer today to hide those operations behind a shiny casing. In the web3 world, a user is far more likely to care about the ease with which they can transact on a platform than the smart contracts behind the scenes that make their (often complex) transaction possible.
There are of course many blockchain fanatics today who are absolutely fascinated with the internal details (The GalaChain team is among them). Still, mass adoption for this budding technology means it will be used to improve various industries throughout the world, without always taking a starring role.
For the rest of this blog, let’s explore some of the “mundane milestones” that prove blockchain is just getting started. These are the unsung heroes in the fight for mass adoption against the corporate giants who have run the show for so long in the web2 era.
Mundane Milestones
Supply Chain Transparency in Retail
Transparency in retail supply chains is an unsung hero of the blockchain revolution.
In recent years, several major retailers have already adopted blockchain technology to enhance supply chain transparency, allowing consumers to trace the journey of products from origin to store shelf. For instance, Carrefour has implemented blockchain to provide detailed information about the nature and origin of their products, enabling shoppers to access data such as harvest dates, cultivation locations, and safety certifications by scanning a QR code on the food label or packaging.
After a multitude of supply chain issues following the pandemic of 2020 and 2021, IBM is offering corporate blockchain solutions to enhance transparency and tracking for supply chains, acknowledging that 73% of consumers have reported that traceability of products is important to them.
Similarly, Desigual has deployed blockchain solutions to improve visibility in their supply chain, marking an important step towards greater transparency and accountability in meeting customer needs.
These initiatives reflect a broader trend among retailers to leverage blockchain for building trust and ensuring product authenticity.
Insurance Claims Processing
Insurance claims can be automated on an unprecedented scale thanks to blockchain.
The insurance industry has always relied on reports and records, especially when it comes to things like processing claims and underwriting new policies. Blockchain tech is increasingly being adopted in claims processing to enhance efficiency, transparency and security.
For example, Lemonade, Inc. has implemented blockchain-based parametric insurance for Kenyan farmers, using smart contracts to automatically process claims based on predefined events like droughts with no need for intervention by human agents. This system has already been proven effective in 2023 as ~7000 farmers successfully received payouts due to drought conditions.
Another example of insurance utilizing blockchain is Etherisc, the decentralized insurance platform. By using blockchain and smart contracts to streamline various insurance processes, Etherisc is able to automate many of the processes involved with insurance claims, reducing overhead and minimizing the threat of fraud.
Tokenization brings new possibilities of fractional ownership to real estate markets.
Tokenization of real estate ownership is on the rise, representing one of the simplest ways for blockchain technology to streamline an already thriving industry. Tokenized real estate can make fractional ownership easier than ever, allowing investors to buy portions of property without the need for substantial capital.
In an early example of real estate tokenization from way back in 2018, a Colorado resort called St. Regis Aspen made history with a first-of-its kind REIT (real estate investment trust) IPO, selling $18M worth of shares in its property as blockchain tokens.
This elegant use case for tokenization has led to the creation of several blockchain-based real estate platforms that enable fractional ownership and the benefits of tokenized trading, such as HoneyBricks and Lofty.
Decentralized Identity (DID) is an emerging blockchain-adjacent technology field that allows individuals to manage digital identities without having to rely on centralized authorities. By using blockchain and other decentralized technologies, DID can enhance privacy and security, giving users the ability to control their own personal information and share it selectively with various service providers. Here are some of the ways that DID can transform the efficiency of various public services:
Citizen Services – Governments can use DID to issue decentralized identities to citizens, facilitating easy access to services such as passport renewals, tax filing and voter registration. These uses could drastically reduce bureaucratic hurdles in traditionally inefficient areas.
Enhanced Privacy – DID systems have the potential to greatly reduce threats and breaches of privacy with personal data.
Interoperability – DID frameworks are designed to fit into larger systems, promoting a new standard of interoperability to different kinds of platforms and services.
One major example of DID in action is China RealDID, China’s national decentralized identity system that was launched in late 2023. This program allows Chinese residents to access online services with DID addresses and private keys.
Blockchain tech is also being adopted in the medical field, especially with clinical trials, to enhance the management of health records. There are a few key benefits:
Data integrity – Blockchain can ensure that health records are tamper-proof, maintaining authentic and reliable data through the duration of a clinical trial. This consistency and reliability are crucial for not just the validity of the findings, but for regulatory compliance issues.
Transparency – The transparent nature of blockchain allows researchers, participants and regulators to access and verify data in real-time, helping to foster greater trust and collaboration.
Efficiency in sharing data – Blockchain makes it possible to seamlessly and securely share health records among authorized parties, reducing the delays and administrative burdens that often come with more traditional methods of data exchange.
Huge strides have already been made for blockchain in the field of medical research and record-keeping, especially surrounding clinical trials for new treatments and medicines.
While this issue will be a long-term challenge and a tough nut to crack, blockchain databases stand to solve the multitudinous problems of managing intellectual property in the internet era. Digital piracy has been an ongoing concern in every growth stage of the internet, from pirated music and torrents to stolen art minted as NFTs and sold for huge sums.
Now, with the often chaotic addition of AI generated material in all forms, it is as difficult as ever to attribute proper credit to the owner of any digital asset. Blockchain protocols and projects are already working on solving these problems by addressing the following:
Proof of creation and ownership – Blockchain allows owners to timestamp their work to establish verifiable evidence of its creation and their ownership. Particularly valuable in copyright disputes, this evidence would provide an immutable record of when a work was created. For example, Bernstein.io, SaharaLabs.ai and others are creating a framework to track and protect creative intellectual property using blockchain.
Automated licensing and royalty distribution – One of the biggest challenges of managing IP is ensuring that the creator is paid, a problem that is solvable by blockchain using well-placed smart contracts.
Supply chain transparency and anti-counterfeiting – Blockchain can track the provenance of goods to ensure authenticity. By recording each step of a product’s journey, consumers and companies can verify the legitimacy of their goods. The European Union Intellectual Property Office (EUIPO) founded an Anti-Counterfeiting Forum in an effort to establish blockchain ecosystems to protect trademarks and designs.
In the journey toward mass adoption of web3 technologies, it’s often the understated advancements that drive significant progress.
While high-profile developments, volatile token price swings and NFT rug pulls easily capture headlines, it’s the integration of blockchain into everyday processes (like those described above) that truly propels innovation. These “mundane milestones” may not always garner widespread attention, but they lay the essential groundwork for a more decentralized and efficient future, moving the needle of innovation in meaningful ways.
GalaChain is Ready
Whatever the industry and whatever the problem, there’s a good chance that GalaChain is in a great position to help solve it. This layer-1 blockchain has the speed, scalability and security needed to tackle serious issues in numerous world industries, no matter how insignificant they seem. So here’s the next big innovations in the adoption of blockchain technology for a better future… Here’s to the unsung heroes… Here’s to the Mundane Milestones.
California has introduced a groundbreaking law, AB 2426, set to take effect in 2025, requiring retailers to inform consumers that digital games can be revoked at any time.
This initiative addresses the growing frustration among gamers over the lack of genuine ownership in digital goods. Inspired by incidents involving companies like Ubisoft and Sony, this law is a wake-up call for the gaming industry and an endorsement of Web3 technology’s potential to restore true ownership to players.
Before the internet era, gamers could purchase physical copies of their favorite games, truly owning the experience. However, with digital gaming, ownership has become conditional. Game publishers often control access to the game even after purchase, essentially making ownership a relic of the past.
Many gamers who have witnessed the not-so-gradual transition from the freedom of physical cartridge ownership to today’s unlock access approach are recognizing the lack of ownership in gaming. Publishers are free to continually sell new expansions that require ongoing purchases for players to stay competitive, and they’re free to clean out player accounts for violations of a multitude of terms and conditions as they see fit.
In early 2024, Ubisoft’s Director of Subscriptions, Philippe Tremblay spoke on the importance of getting gamers comfortable not owning their games.SOURCE
California Making Moves
It’s no surprise that California is the first state in the US to pass legislation intended to protect consumers from being misinformed when “purchasing” access to digital games.
This new warning label law acknowledges the problem but doesn’t solve it—players often still lack real control over their digital assets, even if they will be made aware of the real situation. This is where Web3 comes in.
At Gala, we’re building an ecosystem that empowers gamers to own their digital experiences and assets permanently. With blockchain technology, players regain control over many aspects of their gaming experiences, such as land, characters and items, ensuring that no central authority can revoke access without their consent.
The new California law is a reminder that the gaming industry must evolve, and Web3 is the key to making that transformation a reality.
With the power of web3, Gala Games is poised to reclaim ownership control for gamers all over the world in a way they have never known. For more details, check out this original PC Gamer article
Last week it was reported that OpenSea, the world’s leading NFT marketplace, received a Wells notice from the US Securities and Exchange Commission (SEC), leading to lots of noise in the crypto space.
What is a Wells Notice?
The name of this type of notice comes from the Wells Committee, a legal advisory group created by the SEC in 1972 to review the agency’s enforcement practices, named after the SEC general counsel at that time, John A. Wells.
A Wells notice is given to a person or company following a completed investigation. It is a formal notice used to inform the subject that infractions have been discovered by the SEC, giving the investigated company or person an opportunity to publicly address and respond to the investigation prior to any rulings that might follow.
While the SEC neither confirmed nor denied any such regulatory investigation of OpenSea, in the NFT platform’s August 28th response, it stated that the notice “indicates that the SEC is considering bringing a lawsuit against OpenSea.”
OpenSea’s Position
OpenSea has received a Wells notice from the SEC.
We're shocked that the SEC would make a move that threatens creators and artists, and we're ready to stand up and fight for our industry. https://t.co/7FyFH3NLdm
OpenSea has not wavered in its position that NFTs on its platform should not be regulated as securities. Openly taking a stand for the rights of creators, artists and innovators who use the OpenSea platform, CEO Devin Finzer has pledged $5M (in addition to its own defense) to assist with legal fees for any creators or developers who have also received a Wells notice related to their NFT activity.
“NFTs are fundamentally creative goods: art, collectibles, video game items, domain names, event tickets, and more. We should not regulate digital art in the same way we regulate collateralized debt obligations.”
“We hope that the SEC will reconsider its stance and approach this issue with the open-mindedness it deserves.” –Devin Finzer, OpenSea CEO
Ongoing Debate
The question of whether regulatory agencies would consider treating non-fungible tokens as securities has been looming over the web3 space for the last few years.
While the debate has attracted the attention of the wider crypto world and concern from NFT collectors, the consequences of classifying NFTs as securities under US law would fall primarily on the creators and sellers of NFTs.
The SEC’s mission is to protect investors by maintaining fair, orderly and efficient markets. If NFTs were considered securities, then those who purchased them would be considered “investors” – The SEC would then be obligated to protect them.
Previous Enforcement Actions
While this is the first Wells notice from the SEC to target an NFT marketplace, several exchange platforms have received Wells notices, including Coinbase, Kraken, Robinhood, and decentralized exchange protocol Uniswap.
The question of whether or not certain types of digital goods will be regulated as securities has been approaching for some time, and veterans of the space have seen it coming.
Looking Ahead
Like regulation of cryptocurrency, regulation of non-fungible tokens on some level is inevitable. The majority of web3 innovators welcome such regulation with openness and compliance, because it allows the clarity needed to create and effectively execute projects.
At Gala, we stand with OpenSea that NFTs are not securities and their owners are not investors. We are however fully committed to regulatory compliance as these questions are settled over the coming months and years.
Ultimately, coming regulations should be seen as a sign of web3 adoption and we look forward to a world where such issues are settled, where we can fully focus on the empowerment and progress made possible by blockchain technology.
Imagine a company or an organization that instead of being controlled by a CEO or a board of directors, is run by the people who use its services or participate in its community. This is essentially what a DAO, or Decentralized Autonomous Organization, is.
In simpler terms, a DAO is like a cooperative business or club where everyone involved gets a say in how things are done. But instead of having meetings in person, all decisions and rules are managed online, using blockchain technology. This setup ensures that the organization is decentralized, meaning no single person or group has complete control.
It’s autonomous because it essentially operates itself according to rules encoded in smart contracts, which are self-executing pieces of code on a blockchain.
How Does a DAO Work?
DAOs work through a series of smart contracts, which are basically programs running on a blockchain. These contracts define the rules of the organization, automatically enforcing decisions made by the community. Here’s a breakdown:
Proposals: Any member of the DAO can propose changes, new projects or other decisions about current operations or the future of the DAO.
Voting: Members then vote on these proposals. In a truly decentralized system, each vote is weighted by how much stake (often in the form of tokens) each member holds.
Execution: Once a proposal is approved by the majority, the smart contract automatically executes the decision without need for any human intervention.
DAOs represent a shift from traditional hierarchical structures to more community-driven models. Here’s why they’re significant in the web3 world:
Decentralization: Power is distributed among all members instead of concentrated into a single centralized entity, reducing the risk of corruption or poor management. This distribution also reduces the consumer-to-business trust necessary for an effective organization. In fact, DAOs could almost alternately be called democratized autonomous organizations, but decentralization is a more apt description.
Transparency: Every decision and transaction is recorded on the blockchain, making the organization’s operations fully transparent. For centralized organizations to achieve this level of transparency, there must be a well established routine of sharing information with the users, such as the way publicly owned companies share quarterly financial reports or how a traditional non-profit organization’s financials are shared with its community.
Inclusivity: Anyone with internet access and the required tokens can participate, making DAOs more inclusive than traditional organizations. Because of their ability to essentially manage themselves, DAOs lend themselves well to greater specialization, allowing people to participate in governance in fields for which they are especially qualified, no matter where they live in the world.
Global Reach: DAOs can operate across borders, allowing global participation without the need for a centralized authority.
Examples of DAO Benefits
To make this concept more relatable, let’s consider a few scenarios:
Community-Driven Development
Imagine a group of indie game developers who come together to create a new game. Instead of going through a traditional publisher, they form a DAO. Players and fans can buy tokens to join the DAO and vote on game features, funding allocation, or marketing strategies. This way, the game evolves according to the community’s preferences, and profits are distributed among all contributors.
In this example, the use of a DAO not only covers the governance of their project, but also provides development funding through the sale of tokens.
Charitable Organizations
A charity could be run as a DAO, where donors get to vote on which causes should receive funding. Because all transactions are on the blockchain, donors can see exactly how their money is being used, ensuring transparency and trust. As a result of these benefits, more people could be inclined to donate.
Government Organizations
While the governments of the world are understandably hesitant to begin using a technology as new as blockchain, DAOs would serve well for many aspects of government operations. As traditional democratized voting processes become more corruptible, the security and transparency of DAOs could help protect voting rights and election sovereignty, aligning more closely with the will of the people.
While the Gala ecosystem doesn’t currently operate as an official DAO, it shares many of the principles that make DAOs powerful. At Gala, community input is highly valued, especially through platforms like Discord and Telegram, where feedback is actively monitored and considered in decision-making.
For instance, Gala’s Founder’s Nodes—a network of community-run nodes—play a crucial role in maintaining and securing the GalaChain, which is a key part of the Gala ecosystem. These nodes are operated by community members, and the decisions regarding the ecosystem’s future increasingly involve community voting and participation, which mirrors the decentralized governance seen in DAOs. Nearly all important decisions about $GALA tokenomics are presented to the Founder’s Node community for a governance vote before being put into practice.
Gala’s Path Toward Decentralization
Gala is not just stopping at community feedback. The long-term vision is to move toward greater decentralized autonomy, similar to what a DAO offers. This means that as GalaChain evolves, Gala wishes to see control over the ecosystem gradually shift more toward the community, aligning with the ultimate goal of decentralization.
Even if Founder’s Node operators do not technically represent a DAO themselves, the goal is to see GalaChain channel creators ultimately having the ability to create DAOs for their project, platform, service, etc. We are creating a secure and scalable web3 ecosystem built on a layer-1 blockchain with the power to host numerous community-created DAOs.
In summary, while Gala isn’t a DAO in the strictest sense today, it embodies many DAO principles and is progressing toward a future where the community could have even more say in the governance and direction of the ecosystem.
Thanks for reading our latest web3 explainer article! Hopefully you learned a little something!
Some of the largest Bitcoin mining operations in the world are amplifying their efforts, even in the face of some of the steepest mining cost increases they have ever seen. This is a clear sign of their expectations for the future of the world’s first and largest cryptocurrency.
Following the recently released Q2 financial report from Singapore-based cloud mining company BitFuFu, analysts are observing some fascinating patterns that paint a bullish picture of large scale BTC mining operations’ outlooks for the future of the industry.
Even with a substantial increase in per-BTC mining cost to $51,887 per Bitcoin (compared to $19,344 for Q2 2023), BiFuFu has reported a scale up of 60% from its previous year’s operation.
While the massive increases in mining costs have required BitFuFu to spend more money per BTC, the company has experienced revenue growth of almost 70% ($76.3 million in Q2 2023 to $129.4 million in Q2 2024)
Seasonal Optimism
With the sell waves of Mt. GoX payouts now fading toward the distant horizon and the dust of the 2024 Bitcoin halving settling, some crypto analysts are concluding that BTC is headed for another season of growth.
Matthew Sigel, head of digital assets research at VanEck shed some light on the BTC situation, highlighting the growing connections and opportunities between AI and BTC mining, and discussing the aftermath of “forced selling” and seasonal patterns.
“This is a typical seasonal pattern where Bitcoin tends to struggle in one to three months after the halving, which was in April. And pre-election, as the market comes to grips with whatever candidate wins, we’re in for four more years of reckless fiscal policy. The history is that Bitcoin really hits its stride at that point. So we’re buyers here. We think it recovers.”
