UPYO News

PayPal has taken a significant step towards establishing its blockchain ecosystem by filing a patent application for a purchase and transfer system for NFTs.

The patent application outlines a method of conducting transactions with NFTs, both on- and off-chain. The application, which is currently pending, describes a system in which users can purchase and sell NFTs via a third-party service provider. Although the provider has not been specified, Ethereum is mentioned in the text.

PayPal intends to utilize the complete potential of NFTs for tokenization, which will go beyond the exchange of electronic collectibles, saying: “The NFT in this example may represent any unique piece of digital data that can be tracked using a decentralized blockchain ledger. […] Examples of such assets include […] digital images and videos, music, collectibles, and other digital art along with deeds to personal property, event tickets, legal documents and other real-world items.”

The customization options for the system are diverse. It could support fractionalized purchases by distributing governance tokens that can be traded. Moreover, a decentralized autonomous organization linked to the service provider could enhance the liquidity of NFTs via a specialized platform. Royalties could also be earned from NFTs.

PayPal explained that the system works in the following way: A request for a transaction involving purchasing an NFT associated with a specific source address is received from a first user of the service provider with an identifier and digital wallet. Upon determining that the source address corresponds to a second user of the service provider with a different identifier and digital wallet, the NFT identifier is updated to the first user’s identifier.

The system enables off-chain transactions within an NFT marketplace and allows different wallets to access NFTs. Additionally, the digital wallets within the system are linked through a service provider.

Despite the industry’s difficulties, payPal is creating an NFT transfer system, proving the continued existence of a mainstream market for NFTs.

In exciting news, Buenos Aires, the capital of Argentina, is taking steps to modernize its bureaucracy by implementing blockchain technology. Starting this October, city residents will be able to access their identity documents through a digital wallet.

The initial documents available on the blockchain will include birth and marriage certificates, as well as proof of income and academic verification. The announcement also states that health data and payment management will eventually be integrated into the system. By the end of 2023, a roadmap for expanding this blockchain-based solution nationwide will be developed.

QuarkID, a digital identity protocol developed by Extrimian, a Web3 company, supports the project’s infrastructure. QuarkID wallets utilize the zkSync Era, an Ethereum scaling protocol that employs zero-knowledge rollups. This technology enables one party to verify a statement’s truth to another without disclosing any particular information about the statement.

“This is a monumental step towards a safer and more efficient future for government services in Latin America,” CEO of Extrimian Guillermo Villanueva said.

The wallets will store self-sovereign data, allowing citizens to control the delivery of their credentials when interacting with government, businesses, and individuals.

QuarkID’s settlement layer, ZkSync Era, will ensure citizens possess the required credentials. The digital identity framework developed by the Argentine government and the City of Buenos Aires is intended to be a public good.

Diego Fernandez, secretary of innovation for Buenos Aires, explained that Buenos Aires is the first Latin American city and one of the world’s first to incorporate and promote this technology, setting a precedent for other countries in the region to employ blockchain technology for the betterment of their citizens.

Argentine officials are investigating Worldcoin, a digital ID project, due to privacy concerns regarding customer data collection, storage, and use.

Ghaf Labs, a boutique consultancy and advisory firm based in Dubai, has partnered with the Sui Foundation to support the growth and proliferation of the Sui blockchain protocol and its associated ecosystem.

Sui is a unique Layer 1 blockchain and smart contract platform designed to make digital asset ownership fast, private, secure, and accessible to everyone. Ghaf Labs’ partnership with Sui Foundation aims to drive their expansion within the UAE and the MENA region, fostering the growth of web3 adoption.

Ghaf Capital Partners, a private investment firm founded in 2019, has established itself as a pioneering player in the web3 investment space with an impressive portfolio of 75 companies.

In response to the increasing demand from companies seeking exposure in the MENA region, Ghaf Capital introduced Ghaf Labs. It is a boutique advisory and consultancy service dedicated to web3 ventures, which provides personalized attention to several clients each year.

Ghaf will provide holistic support to the Sui Foundation through a groundbreaking partnership by sharing their expertise and market insights. The Sui Foundation has ambitious plans to expand its ecosystem in the UAE by engaging in university partnerships, discussing with regulators, organizing regional hackathons, and supporting local web3 projects.

To kick off its presence in the region, the Sui Foundation plans to participate in several prominent web3 summits in the UAE during Q4 of 2023, including the Future Blockchain Summit, World Blockchain Summit, and Global Blockchain Congress.

The Sui Foundation will also host a monthly meet-up in Dubai called “Sui Connect.” This event aims to foster community building and stimulate the local ecosystem.

Sui’s innovative use of Web3 technologies includes Sui Move, a dialect of the programming language originally developed at Facebook to power the Diem blockchain. Sui Move is specifically tailored to address the challenges that traditional EVM (Ethereum Virtual Machine) poses for blockchain engineers in developing Web3 enterprises.

Dubai’s Virtual Assets Regulatory Authority (VARA) has warned about the Virtual Asset Service Provider (VASP) JPEX and other associated entities in its holding group.

VARA is considering and initiating regulatory actions against them due to their unregulated operations and false claims about their regulatory status. Investors and market participants should take note of this development.

VARA’s primary concern is that JPEX operates without proper regulatory oversight. JPEX is not registered or regulated by VARA, so any Virtual Asset (VA) activity conducted or offered by JPEX, whether within Dubai or elsewhere, is unauthorized and unapproved by VARA.

JPEX and some affiliated individuals have made misleading statements about their regulatory status. VARA clarifies that JPEX is not regulated by VARA or subject to its oversight. Dubai Law No. 4 of 2022 mandates that all VA activities within or originating from Dubai are fully regulated and under VARA’s supervision. Therefore, if JPEX engages in any such activities, it violates Dubai Law.

VARA has reported that JPEX has not been granted permission to promote, advertise, solicit, or market its products and services. Therefore, JPEX is not authorized to encourage client participation in or from Dubai. Cabinet Resolution No. 111/2022 was cited by VARA, which advises potential investors and market participants to be cautious when dealing with unregulated VASPs. This resolution is a clear warning to exercise due diligence when dealing with virtual asset service providers.

VARA is encouraging customers targeted by JPEX’s promotional activities or receiving services from JPEX in Dubai to notify them.

This proactive approach will allow VARA to gather information and assess the potential extent of any wrongdoing. VARA reiterates its commitment to closely monitor the situation and take appropriate enforcement actions against JPEX and any individuals responsible for misconduct.

VARA is the competent regulatory authority overseeing virtual asset services in Dubai, excluding the Dubai International Financial Centre.