Category Archives: Decentralization
Industry Still Isnt Close to Solving the Blockchain Trilemma: Offchain Labs Chief Strategy Officer – Yahoo Finance
Since the arrival of CryptoKitties in 2017 and DeFi Summer in 2020, the industry is still grappling with how to make blockchains better, cheaper, and faster.
And this is precisely where Offchain Labs chief strategy officer A.J. Warner and his team are setting up camp: solving the famed blockchain trilemma.
The blockchain trilemma refers to the three core challenges developers face when building a blockchain: scalability, security, and decentralization. Gains made in one of these areas are concessions in another.
With so many options for trade-offs, there have been several experiments across the layer-1 space, ranging from Ethereum to Solana, Algorand, and Celestia.
Ethereum solves that by focusing on security, decentralization, and outsourcing throughput to rollups, thats their version, Warner told Decrypt.
As for a network like Solana, it's attempting to have all of this throughput exist in a single environment, and make sure that the thing is also secure and decentralized, he said. Im not even sure if this might defy the law of physics.
As for a solution to the trilemma, the developer team at Offchain Labs is working hard to scale Ethereum with its rollup-based network called Arbitrum.
Arbitrum Airdrops $120 Million in ARB to DAOs
At $5.68 billion in total value locked, a measure of how much money is sloshing around a protocol or dapp, Arbitrum is head and shoulders above the competition. In terms of speed, its certainly an improvement, too, with a measured daily seven transactions per second over the last week.
Compared to payment heavyweights, like Mastercard or Visa, however, its still far from replacing the traditional competition.
If somebody solves the trilemma in a more efficient way, that would be the big breakthrough, said Warner. But, I don't think we're so close.
Alongside solving one of the industrys trickiest problems, such a solution would also have to earn the mindshare of the developer masses.
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You don't have to just solve it, he told Decrypt at EthCC Paris this year. It has to be a huge order of magnitude, an experience that will inspire confidence in both users and developers.
Warner says that one of the areas the Arbitrum team is really excited to be working on is permissionless validation, which he describes as pretty close to the holy grail of rollup technology.
Rollups are a type of scaling solution that rolls multiple transactions together. The final transaction is presented to the blockchain as a single transaction.
There are two main types of rollups: Optimistic and zero knowledge.
Optimistic rollups assume the rolled-up data is valid, thus speeding things up. To protect against fraud and error, optimistic rollup protocols allow users to contest transactions. The flagged transaction is submitted directly to the Ethereum network to check its legitimacy and settle the dispute.
Ethereum Scaling Solution zkSync Unveils Latest Prover Tech Boojum
Zero-knowledge rollups zk-rollupsrely on zero-knowledge proof cryptography, which allows a key detail, such as how old someone is, to be mathematically proven without disclosing additional information, like that persons nationality without disclosing their passport.
Of the two rollup flavors, Arbitrum falls into the optimistic category.
Warner says permissionless validation is the holy grail of rollup tech because the fundamental security properties of a rollup, which distinguish it from alternative L1s and Ethereum, is you only need to trust one honest validator. And if it's permissionless, thats another way of saying you only need to trust yourself.
According to Warner, there are fifteen external validators on Arbitrum, which gives users some level of confidence.
Now, if one of them submitted an invalid state transition, then in a permissionless system, users can challenge it themselves and have the confidence that they can protect their assets in real-time.
Optimism Hits New All-Time High for Daily Transactions Amid Worldcoin Launch
Contrast this with the current system where, as Warner says, you'd have to raise a red flag and one of the 15 validators would be incentivized to challenge anyways because they would want to defend the protocol, but then you rely on them to do it. He adds: So, this is pretty close to the Holy Grail.
Permissionless validation thus enables the community to assess the quality of its validators, bringing the network one step closer to full accountability and transparency.
And, another step closer to adequately solving the industrys trilemma.
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Embrace the Thrill of Anime and Decentralized Finance with Luffy Token (LUFFY) Memecoin Project – Yahoo Finance
Luffy Token
LONDON, UK, Aug. 03, 2023 (GLOBE NEWSWIRE) -- Get ready to embark on an exciting journey as the Luffy Token project takes the anime and crypto worlds by storm! Luffy Token, also known as LUFFY, is a memecoin that harnesses the hype surrounding the epic episode release of Gear 5 on August 6. With its innovative approach to blockchain technology and charitable initiatives, LUFFY is setting sail to redefine the anime meta on Ethereum.
The LUFFY memecoin project welcomes anime enthusiasts, blockchain explorers, and curious souls alike to join its Nakama (community) in a thrilling adventure that fuses anime fandom and decentralized finance. The project is backed by a team of dedicated individuals who firmly believe in empowering the community through governance and transparency.
"I'm thrilled to announce the launch of Luffy Token, a memecoin project that combines our passion for anime and crypto,"said a spokesperson at Luffy Token."Our goal is to foster camaraderie, humor, and creativity within the crypto space while making a meaningful impact in the world through charitable initiatives."
LUFFY embraces innovation and decentralization as it navigates the Grid Line of Innovation. The project seeks to explore exciting new horizons within the Ethereum ecosystem, where community ideas and input play a crucial role in shaping the project's future.
One of Luffy Token's core values is giving back to the world. A portion of the proceeds generated through LUFFY's ecosystem will be devoted to supporting charitable causes close to the Nakama's hearts. By wielding the power of anime fandom, the project aims to mirror the determination of its namesake, Luffy, in protecting and uplifting those in need.
Joining the LUFFY Nakama means becoming a part of an unwavering crew, just like Luffy's own. The project invites anime enthusiasts and crypto enthusiasts alike to be a part of this passionate and fun-loving community. Together, they will set sail on a journey that transforms the crypto space into a playground for anime fans.
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As the epic episode of Gear 5 approaches, the LUFFY team invites everyone to be a part of this exhilarating voyage. Joining the LUFFY Nakama means embracing the thrill of combining anime and blockchain technology. It's time to hoist the Jolly Roger high and set sail on this new crypto adventure.
For more information about Luffy Token and how to join the Nakama, visit the official website athttps://luffytoken.org/. Stay up-to-date with the latest news and updates by following LUFFY onTwitterand joining theTelegramcommunity.
About Luffy Token
Luffy Token (LUFFY) is a memecoin project that aims to redefine the anime meta on Ethereum. Combining the passion for anime and crypto, LUFFY embraces innovation, decentralization, and transparency to create a strong Nakama (community). A portion of the project's proceeds will be dedicated to supporting charitable causes, reflecting Luffy's determination to protect and uplift those in need.
Website|Twitter|Telegram|DEXTools|Uniswap
Disclaimer:
The information provided in this release is not investment advice, financial advice, or trading advice. It is recommended that you practice due diligence (including consultation with a professional financial advisor) before investing or trading securities and cryptocurrency.
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Hope.money Partners with Cobo to Expand its Distributed Reserve Network – Yahoo Finance
HONG KONG, Aug. 4, 2023 /PRNewswire/ -- Distributedstablecoin project Hope.money today announced to partner up with Cobo, a globally trusted leader in digital asset custody solutions, on its custodian technology solutions. This partnership represents a significant milestone in the decentralization of Hope.money's reserve network. Previously Hope.money had chosen Coinbase Custody as its initial digital asset custodian.
Founded in 2017 and headquartered in Singapore, Cobo is one of the largest digital asset custodians globally, trusted by over 500 institutional clients across Asia, Europe, the Middle East, and North and South America, with billions of dollars in assets under custody. From custodial wallets to non-custodial solutions including advanced multi-party computation (MPC) and smart contract-based custody, Cobo empowers institutions to secure and manage their digital assets their way.
Ethereum's Shanghai Upgrade has sparked a surge of interest in Liquid Staking Derivatives (LSDs). The partnership enables Hope.money to experiment on the possibility to include stETH to its pool of reserve alongside the existing BTC and ETH. Hope.money users can stake ETH with Lido and receive stETH, under the custody of Cobo Argus, to earn native yields and avoid opportunity costs when minting $HOPE. While holding ETH alone does not generate this portion of income, the partnership with Cobo will potentially benefit all parties within the ecosystem.
Flex Yang, Founder of Hope.money, stated, "We are excited to announce our collaborative efforts with Cobo, which will provide our users with greater yield opportunities while enhancing the ecosystem's capital efficiency and decentralization simultaneously. Together, we can achieve efficient and specific interaction with DeFi protocols through role-based access controls, creating a more secure DeFi environment for all users."
About Hope.money
Hope.money pioneers in bridging DeFi, CeFi, and TradFi with the HOPE Ecosystem, featuring the distributed stablecoin $HOPE, aims to provide frictionless and transparent next-gen financial infrastructure and services accessible to everyone. This all-in-one ecosystem provides a comprehensive set of use cases for $HOPE, including swap, lending, custody, clearing, and settlement, while incentivizing users to participate in the ecosystem and community governance through $LT.
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About Cobo
Cobo is a globally trusted leader in digital asset custody solutions. As the world's first omni-custody platform, Cobo offers the complete spectrum of solutions from custodial to non-custodial services including MPC and smart contract-based custody, as well as wallet-as-a-service, advanced DeFi investment tools and an off-exchange settlement network. Trusted by over 500 institutions with billions in assets under custody, Cobo inspires confidence in digital asset ownership by enabling safe and efficient management of digital assets and interactions with Web 3.0. Cobo is SOC2 Type 1 and Type 2-compliance-certified and licensed in 5 jurisdictions.
For more information, please visit http://www.cobo.com
About $HOPE
Designed to be a crypto-native distributed stablecoin, $HOPE is currently backed by reserves of BTC, ETH and stETH at a set pegging ratio, the reserve price of $HOPE now fluctuates alongside BTC, ETH and stETH prices.
Website:http://hope.money/
Twitter: https://twitter.com/Hope_money
Discord: https://discord.gg/hopemoneyofficial
Telegram:https://t.me/hopemoneyofficial
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View original content:https://www.prnewswire.com/news-releases/hopemoney-partners-with-cobo-to-expand-its-distributed-reserve-network-301893619.html
SOURCE Hope.money
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Hope.money Partners with Cobo to Expand its Distributed Reserve Network - Yahoo Finance
Craig Wright: Smart contracts are neither ‘smart’ nor ‘contracts’ – CoinGeek
While smart contracts have become ever more popular as blockchain adoption surges, Dr. Craig Wright says they are neither smart nor should be considered contracts.
Dr. Wright was at the University of Exeter for the sCrypt hackathon, where he interacted with the students and answered all their Bitcoin questions. In an interview with CoinGeek Backstage, he talked about building on Bitcoin, blockchain decentralization, smart contracts, and more.
Smart contracts is a pretty little term that sounds good, but there are two problemsthey are not smart and they are not contracts, he told CoinGeek Backstage reporter Becky Liggero.
They are not smart; they are automated, Dr. Wright stated.
Additionally, contracts can only be between two people, and when its automated and just executes, thats not a contract, its just the evidence component of an exchange.
In his presentation to the students at the hackathon, Dr. Wright talked about the myth of decentralization and how it affects the stability of a protocol.
As he told CoinGeek Backstage, decentralization isnt about how many nodes are in a network. Rather, its about whether theres an entity that controls the software that runs the nodes on the network.
Bitcoin is decentralized because it has a protocol thats set in stone. Ethereum is centralized because a small group controls the future of a system. BTC is centralized because three developers control the repository and decide which changes occur.
However, these protocol developers continue to tout their decentralized nature to give users an illusion they lack total control of the network.
Dr. Wright further debunked the code is law myth that he says is pushed by individuals who want to sit behind the curtain in a Wizard of Oz way and run the system without the publics knowledge. This group is against democracy and believes they have superior intellect and, thus, they should set the rules.
The nature of decentralization is allowing people to control their own lives, he noted.
Watch sCrypt Hackathon at University of Exeter: Building smart contracts with blockchain
New to blockchain? Check out CoinGeeks Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.
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Craig Wright: Smart contracts are neither 'smart' nor 'contracts' - CoinGeek
Bald 2.0 A Groundbreaking Project on ETH Network Emerging with a Visionary Mission – Yahoo Finance
Lisbon, Portugal - (NewMediaWire) - August 3, 2023 - Bald 2.0, an exciting new project on the ETH network, has emerged with a visionary mission to revolutionize by aiming for the recovery of losses for potential users. By introducing an innovative payback system, the project is set to provide ETH rewards to the top 50 holders and exclusive NFT collections to the top 200 holders, reshaping the landscape of investment opportunities and deflationary ecosystems in the crypto space.
The main aim of Bald 2.0 is to recover the losses through a sophisticated rewards structure, the top 50 holders will be rewarded in ETH, while the top 200 holders will receive special NFT collections, creating a powerful incentive for potential users to participate actively in the project. These rewards are claimable every 10 days, ensuring a consistent and attractive benefits program for dedicated holders.
To fuel the rewards system, 8% of the sell taxes will be diligently allocated to a dedicated rewards pool. This pool will be exclusively reserved for the top 50 holders, allowing for a transparent and equitable distribution of rewards, precisely in line with the project's core values.
One of the standout features of Bald 2.0 is the secure liquidity locking mechanism. The project has partnered with a security company, to ensure that rug pulls are rendered impossible. This strategic collaboration guarantees enhanced security and instill confidence among investors, shielding them from potential risks and uncertainties.
Furthermore, Bald 2.0 takes pride in its commitment to decentralization and community-driven growth. To demonstrate this dedication, the project will not have any team tokens. This crucial decision prevents any possibility of internal stakeholders affecting the token's price, ensuring a level playing field for all regular holders.
In a move to bolster transparency and autonomy, Bald 2.0's contract will be renounced after the launch. This action represents the project's dedication to decentralization, fostering trust and confidence among investors and stakeholders alike.
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The deflationary ecosystem and rewarding use cases of Bald 2.0 have sparked tremendous excitement and anticipation within the crypto community. With its innovative approach and commitment to investor prosperity, Bald 2.0 is poised to unlock exceptional potential in the market.
About Bald 2.0:
Bald 2.0 is a trailblazing project on the ETH network, designed to recover losses for base chain investors by offering rewards in ETH to the top 50 holders and special NFT collections to the top 200 holders. With its dedication to security, decentralization, and transparency, Bald 2.0 is committed to reshaping the crypto landscape and setting new standards in the industry.
Whitepaper: https://bald-2-0.gitbook.io/bald-2.0-whitepaper/
Twitter: https://twitter.com/bald2ETH
Telegram: https://t.me/+WuprcctSkjc3MDQx
Marketing Partner: CrmoonBoy(CrMoon)
Media Contact
Organization: Bald2
Contact Person: tilio rodiger
Website: http://bald2eth.com
Email: bald2@bald2eth.com
City: Lisbon
Country: Portugal
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Bald 2.0 A Groundbreaking Project on ETH Network Emerging with a Visionary Mission - Yahoo Finance
Base: Coinbase’s Ethereum Layer-2, Heres What You Should Know – nft now
The ever-evolving world of blockchain technology continues to be a hotbed of innovation, and one of the latest trends in this space is the implementation of Layer-2s, and Coinbases latest, Base.
Promising improved transaction speeds, scalability, and security, Layer-2s are shifting the paradigm of how blockchain networks operate. Coinbase, North Americas largest centralized crypto exchange (CEX), has announced the launch of Base, a new layer-two (L2) Ethereum chain utilizing Optimism. Lets dive in.
At its core, Layer-2s are a type of blockchain architecture. They build upon the foundational base layer (or Layer 1), which typically houses the protocol for a blockchain network like Bitcoin or Ethereum, adding another layer to handle transactions and smart contracts.
The concept of layered architecture in blockchain is not new; what sets layer-2s apart is how theyre designed to maximize efficiency and scalability without compromising security and decentralization. They tackle some of the critical challenges faced by base layer blockchains like network congestion, slow transaction times, and high costs.
Layer-2s operate by creating a second layer of protocols atop the main blockchain. Transactions that would ordinarily be processed on the primary blockchain are instead executed on this second layer. Its like adding an express lane to a congested highway; transactions can be processed more quickly and efficiently, bypassing the traffic on the main road.
The completed transactions on the second layer are then batched together and added to the main blockchain as a single entry, reducing the load on the primary chain and significantly increasing the overall networks capacity.
The notable part is that all of this is achieved while maintaining the decentralized nature and security of the blockchain. Transactions in the second layer are cryptographically linked to the base layer, ensuring the same level of security and trustless nature that the blockchain technology is known for.
Base is an L2 chain developed and operated by Coinbase, using the framework of Optimism a layer-two scaling solution for Ethereum, and the second-largest L2 ecosystem after Arbitrum. Optimisms primary objective is to tackle the blockchain trilemma issues concerning scalability, security, and decentralization by enabling interoperability and composability among its rollups, one of which is Base.
Optimism aims to evolve into a superchain of L2 chains, allowing Ethereum to scale up effectively. The superchain offers shared security and tools for developers to interact and create Optimism-compatible L2s, which works with regular wallets. Coinbase and Optimism have worked together for more than a year, contributing to the development of EIP-4844, an Ethereum upgrade that could drastically reduce L2 transaction fees.
In July, Base became available for developers to test their applications on the new network. Starting now, users can transfer their ether (ETH) to Base, according to a Coinbase blog post. The update coincides with Coinbases upcoming second-quarter earnings report and the start of Onchain Summer, a series of events for creators and developers to create art or develop applications on Base. Participants include Coca-Cola, Atari, and the non-fungible token platform, OpenSea.
The launch signifies Coinbases strategic commitment to web3 and L2 adoption, eyeing potential future revenues.Given the increasing demands of blockchain networks whether for decentralized finance (DeFi), non-fungible tokens (NFTs), or myriad other applications Layer-2s are emerging as an effective solution to improve scalability.
Base recently announced that the mainnet will be open to all users on August 9, providing a comprehensive platform to explore the various possibilities within blockchain technology.
According to Base, Our mission remains unwavering: ushering in the next million builders and a billion users on-chain.
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Base: Coinbase's Ethereum Layer-2, Heres What You Should Know - nft now
How Will Web3 Impact the Future of Search Engines? – Techopedia
Search engines have evolved significantly since the beginning of the Internet, from those that used simple algorithms to index and retrieve web pages (Web1) to more personalized search engines that included social signals in their algorithms (Web2).
Web3 search engines are still evolving, and theyre mainly focused on privacy, decentralization, and user control. Web3 search engines are driven by a vision of a more unbiased and open Internet and giving users more control of their digital identities and their data. As such, search engines will likely become more personalized and decentralized.
Blockchain technology and artificial intelligence (AI) are to play major roles in Web3 search engines, and decentralization will enable these search engines to deliver more trustworthy and accurate results as well as alleviate concerns about data privacy.
The next iteration of the World Wide Web, Web3 is a decentralized web that allows companies to create decentralized apps (dApps) and services. Web3 technologies are particularly well-known because they can use a variety of realities, and digital assets, such as NFTs and cryptocurrencies.
And in the future, search engine optimization (SEO) will include blockchain, the metaverse, and virtual reality to enhance the interaction between humans and machines.
One of the main ways Web3 impacts search engines is through the emergence of decentralized search engines that operate via a distributed network of nodes (servers), the foundation of which is blockchain technology. Web3 search engines dont rely on central servers to index and store data; rather, the search engines indexes are distributed across these decentralized networks of peer-to-peer nodes.
As such, these search engines offer more security, transparency, and privacy than traditional search engines, and theyre also more resistant to censorship.
One of the most important factors shaping the future of the internet is artificial intelligence. Natural language processing (NLP) and similar technologies are making human-to-machine communication much easier. This makes intuitive search methods, such as visual search and voice commands, possible.
Additionally, since AI algorithms learn from the behaviors of users, they can provide personalized product recommendations. Also, integrating AI with blockchain solutions offers an improved Internet that safeguards user privacy without sacrificing the advanced search methods AI technologies provide.
Another way Web3 impacts search engines is by offering more personalized search results. Since users control their own data, they can share that data with search engines the way they want rather than have companies, such as Facebook and Google, collect it.
This could result in a more refined approach to search, with results personalized to each users preferences, interests, and search histories. It could lead to more emphasis on privacy as users decide what data to keep private and what data to share with search engines.
Web3 could also affect search engines in terms of advertising. Decentralized networks, such as blockchain, make it possible to create a fairer and more transparent advertising environment. This could result in a move away from targeted advertising that tracks the online behaviors of users and collects their data.
Instead, advertising could be based on blockchain, where users who engage with ads in a fair and transparent are rewarded, resulting in an enhanced user experience and providing advertisers with an audience that is more receptive and engaged.
Web3 could also result in a greater emphasis on quality content. With personalized search and decentralized networks, there will be more focus on creating engaging, relevant, and useful content. This could result in a move away from sensationalism and clickbait and toward content that is truly valuable and informative.
Web3 and the metaverse are related and immersive technologies, such as augmented reality, have key roles in the development of each. These immersive technologies are growing quickly and changing how users search visually. In addition, augmented reality is also especially suited for geo-based searches because it works based on users current locations.
Companies are currently using geo-based search to target prospective customers in real time. Using augmented reality in conjunction with blockchain technology will also enable intuitive and immersive searching based on location in future metaverse apps.
Yes, there are a number of Web3 search engines that already exist.
Web3 can significantly impact search engines as it creates a decentralized web that allows users to have more control over how their data is used.
Although its not clear precisely how search engines will adapt to this new model, there will be a shift toward security, privacy, semantic search, and user-generated content.
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How Will Web3 Impact the Future of Search Engines? - Techopedia
Learn Why Chinese Investors are Gravitating To Bitcoin Spark and … – The Coin Republic
In 2021, blockchain suffered shockwaves as China restricted crypto transactions and bitcoin mining. The nation kept the ban in phases and September 2021 marked the beginning of rule. Two years later, the country is paving the way for crypto operations, including XRP and Bitcoin Spark. Bitcoin Spark has had Chinese venture capitalists join its ecosystem because of the decentralization in mining activities among other interesting and exclusive features.
XRP is a digital currency inaugurated by Ripple Labs. It is also the native token of the Ripple network. XRP is set to increase amid the incoming bull run facing the crypto market. Crypto enthusiasts believe the virtual currency community might experience an earlier bull run. XRPs rise is dependent on Bitcoins surge. Ripple has captured Chinese investors attention following the latest winning battle over the SEC.
The Chinese government banned crypto activities after the critical plummet of Bitcoins prices that melted the entire market. Inaugurating Bitcoin Spark has raised interests in the state to a point where several investors seek to join to avoid the fear of missing out (FOMO). Bitcoin Spark is a new crypto project that leverages the decentralized ecosystem to carry out its operations. The network utilizes a proof-of-process mechanism that links up proof-of-stake and proof-of-work together with a new technological reform.
The platform also has a strategic system that promotes the linear distribution of rewards. The reason why Chinese investors are flocking into the community is due to the decentralization processes embedded in the project. The project rents its processing power to individuals unable to mine Bitcoin due to inadequate capital for electricity and sophisticated mining equipment. They can now perform mining activities with electrical devices connected to the internet.
The platforms native token is BTCS which powers activities for the ecosystem. BTCS is also used to reward participants who actively participate in the tokens development. The maximum supply of the token is 21 million, which will be allocated to the incoming public ICO, liquidity and exchanges, mining rewards, and team tokens. The first stage of the token ICO is set to commence on August 1st with a price peg of $1.50 and a 20% bonus for all participants. Users will generate an 800% profit on any investment made during phase1 when the project goes live on mainnet on November 30th.
The projects marketing strategy relies on leveraging modern technology through media, storytelling, and strategic positioning. The team leaders have knowledge based on the ledger ecosystem and believe in the development of the project. Bitcoin Spark generates its revenue from renting processing power to its clients. The team will utilize 3% of the revenue for maintenance and income. Advertisement is also a source of revenue generation as a small portion of the website and application.
Cryptocurrency bans are evident in the ledger technology, as many have faced several lawsuits. Most security exchanges believe cryptocurrencies have caused shamas in the financial system, affecting small-scale investors. For instance, Sam Bankman, the former FTX manager, made clients lose their assets. Bitcoin Spark is the next project that will garner various investors worldwide. Bitcoin Sparks has various means for clients to generate revenue.
Website: https://bitcoinspark.org/
Buy BTCS: https://network.bitcoinspark.org/register
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Learn Why Chinese Investors are Gravitating To Bitcoin Spark and ... - The Coin Republic
How liquid staking can potentially harm the Ethereum ecosystem … – Cointelegraph
As it continues to grow, liquid staking brings considerable risks to the space and needs better decentralization, according to a report published by digital asset firm HashKey Capital.
According to the report, the overall liquid staking derivatives (LSD) market has surged to more than $22 billion in total value locked in 2023. In addition, the market capitalization of LSD projects has reached $18 billion.
While the growth of LSD protocols may be good for their respective communities and tokenholders, it also could be a double-edged sword. According to the report, it could harm the Ethereum ecosystem in various ways.
As the table above shows, many LSD protocols rely on a small number of node operators that centralize a large number of validator nodes. According to the report, the number of node operators should be a point of concern for centralization.
Related: Liquid staking claims top spot in DeFi: Binance report
The report notes that centralization in liquid staking can have several harmful effects on the ecosystem, such as reduced competition and increased risk of censorship. According to the report:
In addition, as it gets further centralized, there are risks of decreased security, as big staking players can make it easier for attackers to carry out 51% attacks. Moreover, theres also an increased risk of collusion.
Centralized stakers can collude to carry out actions that go against the decentralization ethos and against the users, such as malevolent MEV extraction and frontrunning, the report reads.
While there are centralization risks, HashKey also recognizes that most protocols are very recent and have made plans to decentralize and add distributed validator technology to their protocols for better decentralization and resiliency.
Magazine: SEC reviews Ripple ruling, US bill seeks control over DeFi, and more: Hodlers Digest, July 16-22
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How liquid staking can potentially harm the Ethereum ecosystem ... - Cointelegraph
Bigger Bitcoin Mining Companies are already making the switch to … – Crypto News Flash
Crypto players invest in pursuit of profitability, and as new solutions emerge, new projects attract the interest of major participants in the mining industry. Bitcoin mining companies are now switching to this innovative coin, recognizing its potential to revolutionize the mining landscape. With its unique features and promising advancements, Bitcoin Spark is poised to challenge traditional mining practices and offer exciting opportunities for miners and investors.
Bitcoin pioneered cryptocurrency, and all that goes into its infrastructure. It capped its fixed supply at 21 million Bitcoins, with the current circulating supply at 19 million and the rest being mined. Mining, therefore, is the process by which new bitcoins are created and added to the circulating supply. Mining doubles as the mechanism through which transactions on the Bitcoin network are validated and added to the public ledger, the blockchain. Miners can be individuals or entities who use powerful computers to solve complex mathematical problems through the proof-of-work system. These mathematical puzzles serve as a way to secure the network and prevent fraudulent transactions. Bitcoin mining is a competitive process, and miners compete to solve the problem and create a new block. However, Bitcoin mining is resource-intensive, requiring significant computing power to have a chance at earning rewards. Bitcoin Spark eases the mining entry requirements.
Bitcoin mining profitability depends on electricity costs, hardware efficiency, Bitcoin price, and mining difficulty. It can be profitable during favorable market conditions but less profitable during price drops or increased difficulty. Efficient hardware and low electricity costs boost profitability, and potential miners should consider initial investments, ongoing expenses, and market volatility before entering the competitive mining industry.
Bitcoin Spark (BTCS) is a promising and innovative solution to cryptocurrency investment and mining. With its unique approach to mining rewards, combining staking and processing power (work done), Bitcoin Spark aims to address the limitations faced by traditional cryptocurrencies like Bitcoin and Ethereum.
One of the key differentiators of Bitcoin Spark is its unique blockchain technology, which combines Proof-of-Stake and Proof-of-Work. Bitcoin Spark uses an all-new blockchain technology called Proof-Of-Process (PoP). It allows users to participate in mining and earn rewards by staking their tokens and providing processing power to the network. Unlike traditional Proof-of-Stake systems, where rewards directly correlate to the amount staked, Bitcoin Sparks non-linear reward system prioritizes both stake size and the work done using the networks processing power.
Bitcoin Spark aims to achieve true decentralization and security within its network by encouraging participation from diverse miners with varying computing capabilities. Additionally, the blend of PoS and PoW in PoP fosters fair distribution of rewards, preventing any single miner from gaining excessive power and compromising the networks security.
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Bitcoin Sparks focus on scalability is evident through its efforts to improve transactions per second by decreasing block time and accommodating more individual transactions per block. This reduces transaction fees and improves scalability, making it a more efficient option for everyday transactions. Moreover, the Bitcoin Spark Application empowers users to mine and rent out their computational power to companies and individuals, further promoting decentralization and accessibility for mining.
With its ambitious goals and unique features, Bitcoin Spark aims to become a competitive player in the cryptocurrency mining space. Its unique approach and vision may pave the way for a better mining solution and attract attention from those seeking more efficient, affordable, and secure mining options.
Read here for more information:
Website: https://bitcoinspark.org/
Buy BTCS: https://network.bitcoinspark.org/register
Crypto News Flash Disclaimer: This publication is sponsored. Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should conduct their own research before taking any actions related to the company. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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Bigger Bitcoin Mining Companies are already making the switch to ... - Crypto News Flash