12 Mar, 2025

Circle Trims USDC Cross-Chain Settlement Time Down to Seconds With Protocol Update

Quick TakeCircle, issuer of the world’s second-largest stablecoin USDC, has launched a protocol update it says reduces cross-chain transaction settlement time “to seconds,” compared to an average of 13 to 19 minutes for a typical blockchain transaction between Ethereum and Layer 2 blockchains.According to Circle, the newly launched Cross-Chain Transfer Protocol V2, or CCTP V2, improves upon the earlier version “with a new set of smart contracts and APIs.”Circle Trims Usdc Cross-Chain Settlement Time Down to Seconds With Protocol UpdateCircle, issuer of the world's second-largest stablecoin USDC unveiled a protocol update on Tuesday it says will reduce cross-chain settlement time from several minutes to a matter of seconds.The company's newly launched Cross-Chain Transfer Protocol V2, or CCTP V2, will improve upon CCTP V1 "with a new set of smart contracts and APIs," slashing cross-chain transaction settlement time from "an average of 13 to 19 minutes for a typical blockchain transaction" between Ethereum and Layer 2 blockchains to only seconds, according to a statement."CCTP V2 reduces the barriers that have hindered the fluid movement of digital dollars between supported blockchains," said Nikhil Chandhok, chief product officer of Circle, in the statement. "CCTP V2 gives developers greater flexibility to tailor cross-chain transactions to their specific needs and unlocks low-latency use cases in crypto capital markets, effectively abstracting away cross-chain complexities for developers and their users."As the USD-pegged stablecoin market, by most accounts, is poised to keep growing, improving transaction time could prove beneficial to Circle as competition potentially heats up in the coming months and years. Out of the roughly $235 billion worth of USD stablecoins in circulation, Circle's USDC accounts for $58 billion. USDC ranks a distant second to Tether's USDT, the clear market leader.Avalanche, Base and Ethereum to begin withCircle said CCTP V2 will initially be available for developers working on Avalanche, Base and Ethereum, but the plan is to add support for more blockchains as the year progresses. "CCTP V1 will remain available on 11 blockchains," Circle said, adding that since launched in 2023, "CCTP has facilitated more than $36 billion in transaction volume."Some of CCTP V2's new features Circle highlighted on Tuesday include "Hooks," which it said makes it possible for developers "to automate post-transfer actions on the destination blockchain."

07 Mar, 2025

The Evolving Landscape of Artificial Intelligence and Decentralization

Artificial intelligence is rapidly shaping the technological landscape, with advancements in machine learning and automation influencing industries worldwide. However, much of AI’s development remains in the hands of a few major corporations that control the hardware, proprietary models, and funding necessary to drive innovation. This centralization raises concerns about accessibility, transparency, and long-term control over AI’s trajectory.The Push for Decentralized AIRecent discussions around AI governance have highlighted the potential of decentralization as a way to make AI more transparent and widely available. Decentralized AI (deAI) aims to distribute control over model development, infrastructure, and decision-making processes. This movement aligns with broader efforts in blockchain technology, which has long promoted open and verifiable systems.One company working toward this goal is Kava, a decentralized finance (DeFi) platform established in 2018. Initially focused on enabling financial transactions through blockchain, Kava has expanded its vision to integrate AI into decentralized networks. At Consensus Hong Kong, Kava introduced a large-scale decentralized AI model powered by DeepSeek R1, positioning it as an alternative to proprietary AI systems. The model is designed to execute blockchain-based tasks, optimize DeFi strategies, and facilitate on-chain transactions without reliance on centralized oversight.DeepSeek R1 and Open-Source AIThe introduction of DeepSeek R1 marks a shift in how AI can be developed and deployed. Unlike traditional AI models that rely on proprietary cloud-based infrastructure, DeepSeek R1 is designed to function in an open-source environment. This approach challenges the notion that only large corporations with vast resources can produce advanced AI systems.A core question surrounding AI’s future is control—who gets to influence the model’s development and how its decision-making processes remain accountable. Open-source AI models offer greater transparency, allowing communities to verify, audit, and refine them without being dependent on a single governing body. In theory, this could reduce the risk of bias, censorship, and monopolistic control over AI applications.Kava’s Approach to Decentralized AIKava’s integration of AI within blockchain networks focuses on three key components:① AI Model Fine-Tuning for Blockchain Tasks – Optimizing AI to perform DeFi portfolio management, smart contract execution, and automated governance.② User-Centric AI Assistants – Decentralized AI tools designed to assist users in analyzing blockchain data and executing financial transactions.③ Decentralized Infrastructure – A blockchain-powered GPU-sharing marketplace aimed at reducing reliance on corporate-owned AI cloud services.Unlike centralized AI models that primarily analyze data, Kava’s AI is designed to interact directly with blockchain transactions. This could enable users to automate complex financial strategies, identify optimal staking opportunities, and execute trades without extensive technical expertise.Broader Implications of Decentralized AIThe push toward decentralized AI raises broader questions about the future of AI accessibility and control. A decentralized model could offer:① Censorship resistance – Preventing any single entity from unilaterally altering or restricting AI capabilities.② Ethical transparency – Allowing for open auditing of AI decision-making processes.③ Global accessibility – Expanding AI’s availability beyond corporate or government control.As decentralized AI evolves, it remains to be seen whether it will significantly disrupt traditional AI development or complement existing models. Kava’s initiative with DeepSeek R1 is one example of how blockchain-based platforms are experimenting with AI integration, highlighting both the potential benefits and challenges of decentralization in this space.The Future of AI in Decentralized NetworksThe intersection of AI and blockchain continues to be a growing area of interest, with projects like Kava demonstrating how decentralized networks could play a role in AI’s future. Whether decentralized AI will gain mainstream adoption depends on its ability to compete with existing corporate-backed models in terms of performance, usability, and trust.As AI becomes increasingly embedded in financial and technological systems, the conversation around decentralization will likely expand. Whether models like DeepSeek R1 set a precedent for open AI development or remain niche alternatives to centralized AI remains an open question, but the exploration of decentralized AI continues to shape discussions about control, transparency, and accessibility in the digital age.