In a strategic move aimed at strengthening blockchain privacy solutions, Base, the Ethereum Layer-2 network incubated by Coinbase, announced on Thursday that it has acquired the core development team of Iron Fish, a proof-of-work (PoW) blockchain specializing in privacy-preserving transactions.
The acquisition aims at enhancing Base’s user privacy and security in the rapidly evolving decentralized finance (DeFi) and blockchain ecosystem.
Strengthening Privacy in Blockchain
Privacy remains a critical challenge in blockchain technology, where most transactions are transparent and publicly accessible. Iron Fish, launched in 2023, gained recognition for its use of zero-knowledge proofs (ZKPs) to enable confidential transactions while maintaining regulatory compliance. By integrating Iron Fish’s expertise, Base aims to develop and implement “privacy-preserving primitives,” foundational tools designed to enhance confidentiality within the Base ecosystem.
These primitives will play a crucial role in ensuring secure transactions without exposing sensitive user data. With increasing concerns over data privacy, Base’s initiative aligns with broader industry efforts to develop more secure blockchain infrastructures that balance transparency and confidentiality.
Privacy is critical for unlocking the full potential of an onchain future
While the financial terms of the acquisition remain undisclosed, the deal is primarily focused on the integration of Iron Fish’s team and technology into Base’s development framework. The move does not indicate a full acquisition of Iron Fish as a network but rather a strategic hiring of its core developers.
“Privacy is fundamental to building an open financial system. The Iron Fish team has pioneered some of the most innovative privacy solutions in blockchain, and we’re excited to bring their expertise into Base,” said Jesse Pollak, the lead at Base, in a statement.
Iron Fish founder Elena Nadolinski also expressed optimism about the collaboration, emphasizing that the team’s mission to enable privacy in blockchain will be significantly advanced under Base’s infrastructure and scale. “Joining forces with Base allows us to bring privacy solutions to a much broader user base while continuing to innovate,” she stated.
The Growing Role of Privacy in Blockchain
The acquisition highlights an industry-wide trend where major blockchain platforms are increasingly investing in privacy solutions. Ethereum’s ongoing research into zero-knowledge rollups (ZK-rollups) and other cryptographic techniques reflects the demand for confidentiality without compromising decentralization.
Base, as a Layer-2 scaling solution for Ethereum, has positioned itself as a fast, low-cost, and developer-friendly network. However, privacy has remained an area of improvement. By incorporating Iron Fish’s privacy technology, Base aims to offer users a more secure environment for DeFi applications, NFTs, and on-chain identity solutions.
Regulatory compliance will also be a key consideration. Privacy-focused projects have historically faced scrutiny, with regulators emphasizing the need for anti-money laundering (AML) and counter-terrorism financing (CTF) measures. Base is expected to develop privacy features that align with regulatory frameworks while preserving user autonomy.
What’s Next for Base and Iron Fish?
Following the acquisition, Base plans to integrate privacy-preserving primitives into its roadmap, with an initial focus on secure transactions and identity solutions. Developers can expect updates in the coming months as Base rolls out new features leveraging Iron Fish’s expertise.
Meanwhile, the Iron Fish blockchain remains operational, though the long-term implications of the acquisition on the network are unclear. Some community members have raised concerns about the transition, particularly regarding the future of Iron Fish’s standalone privacy chain. However, both teams have assured that their focus remains on advancing blockchain privacy at scale.
Base’s acquisition of the Iron Fish development team signals a pivotal step toward improving privacy on Ethereum Layer-2 networks. With privacy concerns gaining traction among users and regulators alike, the collaboration has the potential to set new industry standards for secure, decentralized transactions. As the integration progresses, the blockchain community will be watching closely to see how Base leverages Iron Fish’s innovations to shape the future of on-chain privacy.
China’s recent directive for its state-owned banks to decrease reliance on the US dollar has amplified a growing trend among countries seeking alternatives to the dominant reserve assets. In some instances, Bitcoin has emerged as a viable competitor.
BeInCrypto spoke with experts from VanEck, CoinGecko, Gate.io, HashKey Research, and Humanity Protocol to understand Bitcoin’s rise as an alternative to the US dollar and its potential for greater influence in global geopolitics.
The Push for De-Dollarization
Since the 2008 global financial crisis, China has gradually reduced its reliance on the US dollar. The People’s Bank of China (PBOC) has now instructed state-owned banks to reduce dollar purchases amid the heightened trade war with US President Donald Trump.
China is among many nations seeking to lessen its dependence on the dollar. Russia, like its southern neighbor, has received an increasing number of Western sanctions– especially following its invasion of Ukraine.
Furthermore, Rosneft, a major Russian commodities producer, has issued RMB-denominated bonds, indicating a shift towards RBM, the Chinese currency, and a move away from Western currencies due to sanctions.
This global shift away from predominant reserve currencies is not limited to countries affected by Western sanctions. Aiming to increase the Rupee’s international use, India has secured agreements for oil purchases in Indian Rupee (INR) and trade with Malaysia in INR.
The country has also pursued creating a local currency settlement system with nine other central banks.
As more nations consider alternatives to the US dollar’s dominance, Bitcoin has emerged as a functional monetary tool that can serve as an alternative reserve asset.
Why Nations Are Turning to Bitcoin for Trade Independence
Interest in using cryptocurrency for purposes beyond international trade has also grown. In a notable development, China and Russia have reportedly settled some energy transactions using Bitcoin and other digital assets.
“Sovereign adoption of Bitcoin is accelerating this year as demand grows for neutral payments rails that can circumvent USD sanctions,” Matthew Sigel, Head of Digital Assets Research at VanEck, told BeInCrypto.
Two weeks ago, France’s Minister of Digital Affairs proposed using the surplus production of EDF, the country’s state-owned energy giant, to mine Bitcoin.
Last week, Pakistan announced similar plans to allocate part of its surplus electricity to Bitcoin mining and AI data centers.
Meanwhile, on April 10, New Hampshire’s House passed HB302, a Bitcoin reserve bill, by a 192-179 vote, sending it to the Senate. This development makes New Hampshire the fourth state, after Arizona, Texas, and Oklahoma, to have such a bill pass a legislative chamber.
If HB302 is approved by the Senate and signed into law, the state treasurer could invest up to 10% of the general fund and other authorized funds in precious metals and specific digital assets like Bitcoin.
According to industry experts, this is only the beginning.
VanEck Predicts Bitcoin to Become a Future Reserve Asset
Sigel predicts Bitcoin will become a key medium of exchange by 2025 and, ultimately, one of the world’s reserve currencies.
His forecasts suggest Bitcoin could settle 10% of global international trade and 5% of global domestic trade. This scenario would lead to central banks holding 2.5% of their assets in BTC.
According to him, China’s recent de-dollarization will prompt other nations to follow suit and lessen their reliance on the US dollar.
“China’s de-dollarization efforts are already having second- and third-order effects that create opportunities for alternative assets like Bitcoin. When the world’s second-largest economy actively reduces its exposure to US Treasuries and promotes cross-border trade in yuan or through mechanisms like the mBridge project, it signals to other nations—especially those with strained ties to the West—that the dollar is no longer the only game in town,” Sigel said.
For Zhong Yang Chan, Head of Research at CoinGecko, these efforts could prove catastrophic for the United States’ dominance.
“Broader de-dollarization efforts by China, or other major economies, will threaten the status of the dollar’s global reserve currency status. This could have [a] profound impact on the US and its economy, as this would lead to nations reducing their holdings of US treasuries, which the US relies on to finance its national debt,” he told BeInCrypto.
However, the strength of the US dollar and other dominant currencies has already shown signs of weakening.
A General Wave of Currency Decline
Sigel’s research shows that the four strongest global currencies—the US dollar, Japanese yen, British pound, and European euro—have lost value over time, particularly in cross-border payments.
The decline of these currencies creates a void where Bitcoin can gain traction as a key alternative for international trade settlements.
“This shift isn’t purely about promoting the yuan. It’s also about minimizing vulnerability to US sanctions and the politicization of payment rails like SWIFT. That opens the door for neutral, non-sovereign assets—especially those that are digitally native, decentralized, and liquid,” Sigel added.
This lack of national allegiance also sets Bitcoin apart from traditional currencies.
Bitcoin’s Appeal: A Non-Sovereign Alternative
Unlike fiat money or central bank digital currencies (CBDCs), Bitcoin doesn’t respond to any one nation, which makes it appealing to some countries.
For Terence Kwok, CEO and Founder of Humanity Protocol, recent geopolitical tensions have heightened this belief.
For these same reasons, experts don’t expect Bitcoin to replace fiat currencies fully but rather provide a vital alternative for certain cases.
A Replacement or an Alternative?
While Bitcoin offers several advantages over traditional currencies, Gate.io’s Kevin Lee doesn’t foresee its eventual adoption causing a complete overhaul of the currency reserve system.
Recent data confirms this. The number of Bitcoin transactions has fallen significantly since the last quarter of 2024. Bitcoin registered over 610,684 transactions in November, but that number dropped to 376,369 in April, according to Glassnode data.
The number of Bitcoin active addresses paints a similar picture. In December, the network had nearly 891,623 addresses. Today, that number stands at 609,614.
Bitcoin number of active addresses. Source: Glassnode.
This decline suggests reduced demand for its blockchain in terms of transactions, usage, and adoption, meaning fewer people are actively using it for transfers, business, or Bitcoin-based applications.
Meanwhile, the Bitcoin network must also ensure its infrastructure is efficient enough to meet global demand.
Can Bitcoin Scale for Global Use?
In 2018, Lightning Labs launched the Lightning Network to reduce the cost and time required for cryptocurrency transactions. Currently, the Bitcoin network can only handle around seven transactions per second, while Visa, for example, handles around 65,000.
“If expansion solutions (such as the Lightning Network) fail to become popular, Bitcoin’s ability to process only about 7 transactions per second will be difficult to support global demand. At the same time, as Bitcoin block rewards are gradually halved, the decline in miners’ income may threaten the long-term security of the network,” Guo, Director of HashKey Research explained.
While the confluence of geopolitical shifts and Bitcoin’s inherent characteristics undeniably create a space for its increased adoption as an alternative to the US dollar and even a potential reserve asset, significant hurdles remain.
Achieving mainstream Bitcoin adoption hinges on overcoming scalability, volatility, regulatory hurdles, stablecoin competition, and ensuring network security.
The unfolding panorama suggests Bitcoin will carve out an important role in the global financial system, though a complete overhaul of established norms seems unlikely in the immediate future.
Metaplanet stock has rallied another 15%, hitting 1,116 JPY levels on the Tokyo Stock Exchange, while extending its monthly gains to more than 224%. This mega rally caught investors’ attention as the stock price is now trading at a 447% premium to Bitcoin, as if each BTC was worth $596,154 i.e. more than five times its actual price. Analysts at 10x Research have flashed warning signs in this valuation gap. Is Metaplanet Stock A Risk Bet From Here? Although the Bitcoin price has added $15,000, gaining over 16% over the past month, the Japanese stock has witnessed a mega rally, gaining 224% during the same period. Analysts at 10x research noted that the Metaplanet stock were trading as if Bitcoin were valued at $596,154, nearly 5x of its current pricing. Thus, the stock price is trading at a massive 447% premium to BTC. Analysts have observed a concerning Net Asset… Read More at Coingape.com
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