ZenGo is one of the most popular bitcoin software wallets. The mobile wallet uses secure 3-factor authentication to protect your digital assets, which is comparable to other wallets on the market. With ZenGo, you can buy, trade, and earn interest on digital assets directly from your wallet.
Gas costs have been the most painful aspect of Ethereum transactions over the past few years. If you're new to cryptos and your wallet says you have to pay $30, $45, or even $60 in gas fees to validate a transaction, it can be frustrating.
As a result, various teams have been working on solutions to the problem. Transactions could be handled outside the main Ethereum network to reduce transaction fees (the Layer 1). These initiatives are referred to as Layer 2 solutions.
Some believe that many blockchains (or sidechains) will exist, each with its own set of benefits and cons. The Ethereum Virtual Machine (EVM) is compatible with blockchains like Polygon (previously Matic) and Avalanche, thus switching from one to the other doesn't take much effort.
Others predict that some transactions will be conducted outside of the Ethereum blockchain's primary network. Transactions are essentially routed to Layer 2 nodes to be processed and batched together.
A set of transactions is published to the main Ethereum blockchain once there are enough transactions. These transactions can't be changed once they're on the main Ethereum blockchain.
Because a validity proof is constructed based on hundreds of transactions, zero-knowledge rollup systems like zkSync are extremely cost effective. Layer 2 transactions cannot be changed since they do not conform with the validity proof, which is then posted to the main Ethereum blockchain.
And this is the scalability solution that Argent chose. "We had to wait a long time. Argent co-founder and CEO Itamar Lesuisse told me, "We skipped a lot of short-term possibilities to make no compromise." "That's why we've taken a more opinionated approach," he explained.
Gas prices for Layer 2 transactions are expected to be as low as $1 per transaction, according to the business. Since Argent began working on Layer 2 accounts, 500,000 people have joined up for the waitlist.
"You'll start your life on L2 on Monday, and you'll buy cryptos on L2," Lesuisse remarked. Existing Argent Layer 1 wallets will continue to exist, but they will no longer be the default wallet. They'll be named 'Vaults,' to represent the fact that they'll be for wealthy individuals with crypto assets worth millions of dollars.
Argent expects that by making this move, it will be able to reach a new audience of mainstream crypto aficionados. Argent hopes to create a financial super app for web3 and DeFi in the future. "Revolut is the financial super app's inventor, and we believe we can go beyond," Lesuisse added.
Users can purchase cryptocurrency with a debit card or a bank transfer immediately from the app. For fiat-to-crypto transactions, the company has partnered with Ramp and MoonPay.
After that, users can use the app to exchange cryptocurrency on a decentralized exchange. Argent employs ParaSwap, a decentralized exchange aggregator, to identify the optimum trading pair for whatever you're selling and buying.
Through DeFi protocols from several partners, such as Yearn, Lido, Aave, and Gro, Argent also allows you to earn interest on your crypto assets. "We kept it small because the Layer 2 experience is considerably more simplified." "The lower the expenses are, the more concentrated the demand," Lesuisse explained.
Argent has a fresh start with Layer 2. Aside from minimal transaction fees, the company believes that the present experience with non-custodial wallets isn't fantastic, particularly due of the seed phrase notion.
"This archaic paradigm of a key in your drawer and a Post-it note in your pocket will never be the way we manage money," Lesuisse added. There is no seed phrase with Argent. You may keep your wallet safe by using your iCloud account or enlisting the help of guardians. Friends can serve as guardians and assist you in recovering your wallet.
However, Lesuisse is fully aware that the majority of individuals simply go to Coinbase and buy some cryptos. That's what the firm hopes to change with today's upgrade. "MetaMask is the largest non-custodial wallet, but centralized exchanges are our main rival," he stated.
Is Biden After Your Cryptocurrency Wallet?
While investing in cryptocurrencies like Bitcoin, Ethereum, and even stablecoins may have appeared absurd just a decade ago, holding a certain percentage of your portfolio in cryptocurrencies like Bitcoin, Ethereum, and even stablecoins is now rather common. After all, over the previous decade, cryptocurrency's popularity and utility have skyrocketed. Furthermore, customers appreciate crypto's decentralized structure, especially since the federal government is constantly looking for new ways to track frequent consumer transactions in USD.
However, it's not unexpected that the Biden administration is looking for new ways to trace transactions that take place in private crypto wallets. In fact, according to some sources, President Biden may issue an executive order soon to guide government agencies in their efforts to control digital assets.
While you may be afraid about the government scrutinizing your cryptocurrency transactions, most investors don't need to be concerned - at least not now. If you're curious about why the government is interested in how much crypto you have or how you use it, keep reading.
LONDON, ENGLAND— Bitcoin, a digital cryptocurrency, is represented visually on... [+] In London, England, on October 23, 2017. Despite remaining extremely volatile, cryptocurrencies such as Bitcoin, Ethereum, and Lightcoin have enjoyed extraordinary growth in 2017. While digital currencies have divided opinion among financial institutions and currently have a market valuation of over 175 billion dollars, the crypto sector continues to develop as mainstream use increases.
Why Does the Government Monitor Crypto?
It's crucial to note that the authorities may perceive private crypto wallets as a potential alternative to regular bank accounts, according to Shaun Heng, VP of Growth & Ops at CoinMarketCap. A physical bitcoin wallet, on the other hand, does not actually hold or store any digital assets, as he points out. "Instead, a crypto wallet simply stores the private keys required to access assets recorded on the blockchain," he explains.
Because all digital assets are maintained on the blockchain, which is essentially a ledger or record of all crypto transactions, all digital asset transactions are by definition public and traceable.
"Transparency is one of the most important aspects of blockchain technology," Heng explains.
Even if currency is decentralized, the government still has a vested interest in keeping track of where it is traveling. However, the government is constantly concerned in preventing crimes such as money laundering, human trafficking, and fraud.
Government agencies, according to Cabital CEO Raymond Hsu, are understandably concerned about cryptocurrency exchanges that lack adequate anti-money laundering safeguards.
"These exchanges would appeal to financial criminals, terrorist financiers, and sanctions evaders, eroding the reputation of the countries in which they are based," he argues.
The government is concerned, according to HiCollectors CEO Scott Steward, that people would be able to move enormous sums of money through private crypto wallets without being taxed or regulated.
"The goal of private wallets is to keep transactions private," he argues, "but the lack of regulation could put the economy in jeopardy." "If people can move enormous sums of money with little to no control, it may lead to dangerous investments and other bad activities."
That is why, he claims, the federal government is putting in a strong effort to make crypto secure.
However, some analysts feel the government has malicious intentions when it comes to tracking cryptocurrency transactions. For example, according to Modulus CEO Richard Gardner, the Fed "wants complete control over monetary policy in order for the federal government to have complete control over our privacy, as well as the ability to shutter, or alternatively, tax alternative payment mechanisms out of existence, should they deem it necessary."
As a result, he believes that crypto enthusiasts and the general public should be quite concerned about these developments.
Ozzy Dot, a cryptocurrency specialist who goes by the handle @OzzyDotClips on TikTok, recently discussed this type of issue in one of his videos. As he mentioned, a Canadian Superior Court of Justice recently ordered that the assets of users who participated in a protest against vaccine mandates be frozen by a crypto firm named 'Nunchuk.' The business stated the following in a response to the Canadian government:
"With the exception of email addresses, we do not collect any user identification information." "We don't have any keys either," they added. "As a result, we can't 'freeze' our users' assets; we can't 'keep' them from being moved; and we don't know about 'the existence, type, value, and location' of our users' assets." This is on purpose."
The note stated, "Please look up how self custody and private keys function." "When the Canadian currency loses its value, we'll be here to help you as well."
This, according to Ozzy Dot, is why governments are concerned about private crypto wallets. When compared to traditional centralized banking, they can't be frozen or seized, therefore the powers that be don't have the power and control they want.
Should Crypto Investors Be Concerned About Regulation?
Ordinary crypto investors, for the most part, don't have to do much to be compliant with their accounts other than pay taxes on qualified transactions. Consumers should already be tracking their bitcoin transactions and reporting gains and losses, according to financial advisor Julian B. Morris of Concierge Wealth Management. If not, tighter regulation may compel some crypto investors to join the bandwagon.
Morris recommends establishing a spreadsheet of dates and prices of transactions for individuals who aren't keeping track of their crypto transactions yet. This way, you'll have paperwork that matches the blockchain and is easier to declare for tax purposes. He also mentions that if you connect your wallet to a provider, it can generate these reports for you.
Meanwhile, crypto investors and average customers should remain calm. Any mechanisms put in place to track cryptocurrency transactions will be aimed at detecting unlawful monetary movements such as fraud and money laundering. You have nothing to worry about if you're investing in crypto in a normal way, without trying to hide money, cheat taxes, or breach the law.
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