GM, this is The Crypto Explorer, the only newsletter with headlines so hot our writer can't stand the heat! 🥵

Here’s what we got for you today:

• 🤔 Will Bitcoin Embrace Vitalik Buterin's Scalability Vision?

• 😲 Blockchain Developer Uncovers Brazil’s CBDC Functions.

• 😠 US Presidential Candidate Caught in Crypto Scandal!

• 🧱 Around The Block: UK FCA shuts down 26 crypto ATMs following a coordinated investigation.

 🤔 Will Bitcoin Embrace Vitalik Buterin's Scalability Vision?

Vitalik Buterin, co-founder of Ethereum, has some interesting thoughts on improving scalability on the Bitcoin Network!

During a Twitter space hosted by Bitcoin developer Udi Wertheimer, Buterin stated that the Bitcoin network needs scalable solutions like zero-knowledge rollups (ZK-rollups) to become more than another payment network.

Buterin mentioned Optimism and Arbitrum as successful examples of rollups that could serve as case studies for Bitcoin.

Whether or not Bitcoin will follow this route remains to be seen.🤷🏻‍♀️

Both Bitcoin and Ethereum have long been engaged in discussions around scalability. 

Ethereum has transitioned from a proof-of-work to a proof-of-stake network, exploring layer-2 solutions like ZK-rollups and Plasma.

On the other hand, Bitcoin’s layer-2 solution, the Lightning Network, has been crucial to its scalability. Lately, Bitcoin Ordinals have helped the Bitcoin network become more than just another payment layer.

Read the full story here.

 😲 Blockchain Developer Uncovers Brazil’s CBDC Functions.

Brazil's central bank released the source code of its pilot CBDC on the GitHub portal on July 6.

It was intended for use only in a test environment, with the possibility that the “presented architecture” may be subject to additional changes.

But on the same day of the release, a blockchain developer named Pedro Magalhães claimed to have “reverse engineered” the open source code, revealing functions in the code.

These functions include:

• Freezing and unfreezing accounts.

• Increasing and decreasing balances.

• Moving currency from one address to another, and

• Creating or burning digital real from a specific address.

According to Magalhães, these functions could have some benefits. Still, the problem lies with the lack of specificity in the code regarding the circumstances and the entity with the power to execute these functions.

See the benefits here.

The cryptocurrency community is concerned about how this affects their financial freedom and privacy.

Meanwhile, the digital real pilot reportedly runs on Hyperledger Besu — a privately operated Ethereum Virtual Machine (EVM)-compatible blockchain.

 😠 US Presidential Candidate Caught in Crypto Scandal!

US Presidential Candidate Robert F. Kennedy Jr has been called out for lying about his Bitcoin investment!

During the Miami Bitcoin conference in May, Kennedy boldly denied being an investor in Bitcoin.

But guess what?

Recent financial records tell a different story - a disclosure form submitted on June 30 indicates a brokerage account holding between $100,001 and $250,000 worth of Bitcoin.

And now, Kennedy’s team is backpedaling on his original claim, spinning tales left and right.🙄

At first, they claimed that the Bitcoin purchase was made between the speech in Miami and the June 30 filing deadline.

Then, it was that the Bitcoin investment belonged to Kennedy’s wife.

But alas, it was admitted that the Bitcoin investment belonged to Kennedy.

So, why all this back and forth? Find out here.

🧱 Around The Block: UK FCA shuts down 26 crypto ATMs following a coordinated investigation.

• 🏧 Crypto ATMs: UK FCA shuts down 26 crypto ATMs following a coordinated investigation.

• 🛑 Crypto Licence: Dubai crypto regulator suspends BitOasis crypto exchange license.

• 👺 Hack: Arcadia Finance hacker used a reentrancy exploit, team demanded the return of funds.

• 📚 Study: Social media discussions are crucial in influencing crypto returns.

That's all we've got for you today.

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In any case, see you tomorrow, or on Twitter, if you're there: @danielakpobare

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be NEW”