Category Archives: Ethereum
Crypto whale loses $24M in staked Ethereum to phishing attack – Cointelegraph
A cryptocurrency whale has fallen victim to a massive phishing attack, losing millions of dollars in staked Ether (ETH) on the liquid staking provider Rocket Pool.
The investor lost their entire address balance of Lido Staked ETH (stETH) and Rocket Pool ETH (rETH) on Sept. 6, the cryptocurrency security firm PeckShield reported.
The hack was completed in just two transactions, with9,579 stETH stolen in one and4,851 rETHin another.At the time of the attack, the amount stolen was worth $15.5 million in stETH and $8.5 million in rETH, a staggering $24 million combined.
According to PeckShield, the phisher subsequently swapped the assets for 13,785 ETHand 1.64 million Dai (DAI).
A significant portion of the DAI stash has already been transferred into the fully automatic cryptocurrency exchange FixedFloat, PeckShield reported.
SlowMists crypto tracking team, MistTrack, reported that most of the remaining stolen funds were transferred to three addresses.
Related: MetaMask scammers take over government websites to target crypto investors
According to anti-scam source Scam Sniffer, the victim enabled token approvals to the scammer by signing Increase Allowance transactions.
Allowance or access permissions are a feature of ERC-20 tokens that enable a third party to have the right to spend some tokens that belong to a different owner, using smart contracts. Some cryptocurrency observers havewarned against risks associated with approving ERC-20 allowances, noting that anonymous developers could deploy malicious smart contracts to scam users.
The news comes shortly after at least five Ethereum liquid staking providers Rocket Pool, StakeWise, Stader Labs and Diva Staking imposed or started working to impose a self-limit rule in which they promise not to own more than 22% of the Ethereum staking market.
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
Magazine: Asia Express: Thailands national airdrop, Delio users screwed, Vietnam top crypto country
See the original post:
Crypto whale loses $24M in staked Ethereum to phishing attack - Cointelegraph
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: A break down seems likely as BTC momentum wanes – FXStreet
Bitcoin (BTC) price appears to be coilin up for the next move, after a longstanding consolidation. Ethereum (ETH) and Ripple (XRP) have mimicked the same outlook, forecasting a possible directional bias in the days to come.
Also Read: Bitcoin Weekly Forecast: BTC could revisit $21,000 as sell signals multiply ahead of US CPI.
Bitcoin (BTC) price is moving west, consolidating within a narrow range after breaking below a crucial support level during the August 17 crash. With weekends known to be rather lulled, the odds of a move north are slim unless large holders act.
The $24,995 support level is a make-or-break for Bitcoin price. A decisive break below would send BTC to the psychological $24,000 and mark a bearish shift in trend. In the dire case, seller momentum could see the king of crypto hit $21,915, levels last seen around mid-March.
Both the Moving Average Convergence Divergence (MACD) indicator and the RSI recently gave buy signals. The RSI rose out of oversold territory at the end of August and the MACD line crossed above its signal line in negative territory at the same time. Despite these signals only reflecting a brief dead-cat bounce in price that quickly fell back at the start of September, there is still a possibility of a recovery evolving.
BTC/USDT 1-day chart
A resurgence by the bulls could provide such an impetus for Bitcoin price, fueling a recovery to the upside. Such a move could send BTC above the 200-, 50-, and eventually the 100-day Exponential Moving Average (EMA) at $27,066, $27,414, and $27,763 levels before ultimately restoring above the support offered by the ascending trendline at $29,692.
In a highly ambitious case, Bitcoin price could foray into the zone above the psychological $30,000 before tagging $31,518. While the possibility for a northbound move remains bleak in the near term, it would constitute a 20% climb above current levels.
Also Read: Bitcoin all-time high in 2025? BTC price idea reveals 'bull run launch
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an improved version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoins interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Ethereum (ETH) price is testing the $1,621 support level, which is shaky ground, considering momentum is fading.
A drop below this buyer congestion level with a lot of uncollected liquidity hanging beneath could see ETH test the $1,529 support level.
ETH/USDT 1-day chart
Conversely, revitalized momentum among bulls could see Ethereum price pivot at $1,621 before forging north to the 50-day EMA at $1,734. The ascension could extend, possibly reaching the area where the 200- and 100-day EMAs appear to converge at $1,762 and $1,773, respectively.
With the right momentum, inspired by a strong move by Bitcoin, the price could see Ethereum price hit $1,841, an area last tested on August 15.
Also Read: Ethereum whales accumulate ETH as researchers explore scaling beyond EIP-4844.
Ripple (XRP) price has broken out from a descending parallel channel after the exhaustion blow-off move lower on August 17. These are both bullish signs that the downtrend has finished. Further confirmation would be provided should the remittance token record a daily candlestick close above the 200-day EMA at $0.5233.
XRP/USDT 1-day chart
If sidelined investors or late buyers come in, the increased buying momentum could see Ripple price tag, or in a highly bullish case, overcome the resistance presented by the confluence resistance area between the 100-day and 50-day EMAs at $0.5547 and $0.5580 levels respectively.
Overcoming these hurdles could clear the way for Ripple price to reach the psychological $0.7000 level. This would indicate a 15% drop.
From a bearish perspective, there is still a risk Ripple price could slip back below the upper boundary of the descending channel and potentially extend to the July 13 lows around $0.4600. This would represent an 8% fall. In a dire case, Ripple price could extend to the midline of the bearish technical formation at $0.4191.
Also Read: XRPprice likely to slump as pro-XRPattorney Deaton analyzes the Howey memo and Hinman speech
Original post:
Bitcoin Spark: The New Age Cryptocurrency Outshining Bitcoin and … – Blockzeit
Bitcoin and Ethereum are the most significant crypto projects in market capitalization. Bitcoin takes the first position, while Ethereum follows behind alongside other altcoins. The two platforms have provided the ecosystem with massive utility and functionalities that have pioneered the development and sustaining of new and improved projects like Bitcoin Spark.
The downside of these two networks is that they have high transaction costs. Bitcoin has a low transaction speed since its technology existed before 2009 and has limited scalability due to a lack of smart contract deployment features.
Bitcoin mining is a validation process on the Bitcoin network that verifies transactions and approves the addition of new blocks recorded on the blockchain network. The activity is carried out by miners who compete to solve complex mathematical arithmetics using sophisticated high-end computers explicitly specialized for mining. Miners are rewarded in BTC, the native token of the network. The process is unavailable to retailers as it has a massive entry barrier associated with high electricity costs and expensive mining equipment.
Ethereum staking refers to Ethereum 2.0 participation, completed by locking up ETH as collateral to enhance the Ethereum networks security and efficiency. The activity is conducted by speakers who are also called validators. Validators are required to provide a minimum of 32 ETH as collateral in exchange for staking rights. The validators validate transactions and add new blocks to the ecosystem while maintaining the efficiency and security of the network.
Ethereum and Bitcoin are great projects that have contributed immensely to the development of the cryptosphere. However, these projects have old-generation blockchain networks with massive transaction fees and limited scalability. For these reasons, a new Bitcoin and Ethereum alternative called Bitcoin Spark is being developed. Bitcoin Spark is an advanced crypto-oriented network that looks to provide solutions to the inhibiting factors of Bitcoin and Ethereum networks.
The project intends to capitalize on the advantages of proof-of-work in Bitcoin and proof-of-stake in Ethereum to develop a more advanced network that processes large numbers of transactions at higher speeds. The platforms consensus mechanism is proof-of-process, which alloys the two validation methods alongside advanced special features such as a reward-standardizing automated algorithm. This blueprint will manage the distribution of rewards among stakers and miners.
The networks proof-of-work validation method entails solving less complex mathematical challenges to complete transactions. The process will be so simple that miners will begin mining in the network using standard handheld electronic devices, unlike it is the case with the Bitcoin network, which requires high-end computer hardware. The aim of the team to introduce a mining application for standard devices is to make BTCS mining more decentralized than mining BTC.
The applications will have well-branded, easy-to-use interphases available on most operating systems, including Mac OS, iOS, Android, Linux, and Windows. The software will run in the background of the devices, allowing users to proceed with the normal functions. Additionally, the software will have advanced technological features that will adjust for the processing power required and account for device limitations such as overheating and battery usage.
Website: https://bitcoinspark.org/
Buy BTCS: https://network.bitcoinspark.org/register
View original post here:
Bitcoin Spark: The New Age Cryptocurrency Outshining Bitcoin and ... - Blockzeit
Crypto Price Today: Bitcoin regains $2,600; Ethereum nears $1,650; Altcoins trade higher – Business Today
Bitcoin was struggling to hold some gains on Friday. All eyes are set on India's G-20 presidency, where crypto regulations are likely to be discussed. Just banning cryptocurrency won't eliminate its risks, a joint policy roadmap published by global standard setters Thursday said.Ethereum is currently attempting a rebound after failing to break the $1,675 resistance level.After recording short-term gains last month, the asset has declined 9.2% since mid-August.The price action has been registering short line candles in the daily chart, indicating that ETH will continue moving sideways in medium term.Image: Chart-ETHThe asset is currently trading below its 20-day moving average of $1,670 which acts as an immediate resistance level.Its RSI reading is currently at 40, slightly in oversold territory.If ETH is unable to break through the $1,700 barrier this week, the price may consolidate around $1,650 levels for a while.Major Levels:Support: $1,625,$1,585Resistance: $1,670, $1,700, $1,735(Views and recommendations given in this section are the analysts' own and do not represent those of Business Today. Please consult your financial adviser before taking any position in the asset/s mentioned.)
Link:
Ethereum volatility falls below Bitcoin as volume lags – CoinJournal
Key Takeaways
Ask anybody to describe the cryptocurrency markets, and there is a strong chance that the word volatile will be mentioned.
The nascent asset class is well known for aggressive price moves. However, it has not lived up to that reputation this year. Despite Bitcoin having increased 55% since the new year, the rise has been characterised by a slow and steady climb rather than sudden jumps as we have seen so often in the past.
A glance at its volatility, plotted on an annualised basis over a rolling 30-day window, shows this below. While the volatility has risen in the last two weeks amid news of the positive ruling on Grayscales case against the SEC, as well as other ETF-driven narratives, it is still lagging far below what we have come to expect from Bitcoin.
To be clear, realised volatility in the mid-30s is still extremely elevated when compared to other asset classes, so nobody is arguing that Bitcoin is now stable.Yet when compared to what we have seen over the years from Bitcoin, it is certainly unusual.
Perhaps the best way to sum up the placid nature of the crypto market is to compare the volatility of Bitcoin and Ethereum. Bitcoin tends to lead the crypto market, with altcoins trading like levered bets on the worlds largest crypto. While Ethereum may be too large at this point to qualify as an altcoin, it has nonetheless tended to display higher volatility than its bigger cousin. This gap has come down in 2023, however, as the below chart shows.
In fact, Ethereums realised volatility is actually currently belowthat of Bitcoin. The next chart zooms in the 2023 period, showing this flippening.
It is the fourth time this year that Ethereum has printed volatility below Bitcoin. The previous three times saw a swift regression, so it may happen again. Either way, the gap has been oscillating close to zero since the start of the year.
For many, Bitcoin and crypto as a whole must shed its habit of violent volatility. Should the asset achieve its goals of becoming a reputable store of value or a digital equivalent of gold, its value cannot fluctuate as much as it has for much of its existence.
Hence, it may be tempting to paint the dropoff in volatility in a positive light. However, that may be misguided. In truth, volatility and volume move hand in hand. And crypto volume has collapsed in the last two years.
August exchange volume came in at $423 billion, less than half of what it was at this time last year.
The $423 billion of volume last month was the lowest of any month since October 2020, before Bitcoin exploded into mainstream consciousness with a relentless run-up past its then-all-time high of $20,000.
The next chart shows exchange volume going back over the last two years, with volumes around $2 trillion at this time in 2021 5X last months figure.
While the earlier points regarding Ethereum trading with lower volatility may be dismissed by some as an argument that Ethereum is maturing and separating itself from the rest of the non-Bitcoin market, the suppressed volume is undoubtedly concerning for the market as a whole. It is also part of the reason why volatility is so low.
It feels inevitable that volatility and volume will pick back up. This is where ETFs, macro clarity, sentiment pickup and an overall brightening of the picture will help. And more likely than not, these will all occur, it is just a matter of when. With April 2024 now only seven months away, there is also Bitcoins fourth halving coming down the tracks although it remains to be seen what effect that may have.
But for the moment, volatility and volume are both trickling along, far below what we had come to expect from this corner of the financial markets. remains to be seen
See the article here:
Ethereum volatility falls below Bitcoin as volume lags - CoinJournal
Bitcoin (BTC) & Ethereum (ETH) Struggle, but VC Spectra’s (SPCT) 220% Rally Shocks All! | – Bitcoinist
While Bitcoin (BTC) and Ethereum (ETH) grapple with market turbulence, VC Spectra (SPCT) has astounded the crypto sphere with its remarkable 220% rally. The innovative decentralized hedge fund is rewriting the rules of blockchain investments and quickly earning the title of the best crypto to buy.
Will VC Spectras (SPCT) outstanding performance continue as Bitcoin (BTC) and Ethereum (ETH) face challenges? Lets find out.
>>BUY SPCT TOKENS NOW<<
The U.S. Securities and Exchange Commission (SEC) postponed its verdict on the pending Bitcoin ETF applications, exacerbating the downward pressure on Bitcoins (BTC) price. The market has already witnessed a Bitcoin crash after the SEC delayed approving Bitcoin (BTC) ETFs.
By September 5, Bitcoin (BTC) had fallen to a value of $25,699, representing a significant decline from its high of $27,867 on August 31. Prior to this, an increased interest rate also triggered a Bitcoin crash.
Market analysts are voicing concerns that this time, the Bitcoin crash could persist, potentially pushing Bitcoins (BTC) price down to the $24,000 level unless the ETFs are approved early on.
Moreover, experts are issuing cautious predictions for Bitcoins (BTC) short-term future. If Bitcoins (BTC) price cannot stop its decline before the $24,500 level, theres a looming possibility that BTC might experience a more significant decline to $20,000.
Grayscale has solidified its position as a significant player in the Ethereum (ETH) ecosystem, amassing a substantial Ethereum holdings reserve of nearly 3 billion ETH. Their Ethereum Trust empowers investors to tap into the potential of Ethereum (ETH) without the need to directly acquire, secure, or manage the digital asset themselves.
While experts gave a positive Ethereum prediction, the market suffered heavy declines as BTC crashed on August 17. This forced analysts to give another Ethereum prediction on September 1.
Ethereum (ETH) has recently declined, experiencing a 6.3% drop over the past week, with its price decreasing from $1,741 to $1,630. Furthermore, on-chain data indicates a 4% reduction in Ethereums (ETH) user activity following the release of this report on September 1, 2023.
The new Ethereum prediction, however, offers some optimism and suggests that Ethereums price will rise to levels above $1,800. Analysts attribute this positive outlook to Grayscale Ethereum Trusts substantial involvement in Ethereums (ETH) network, indicating growth after the current bearish market stabilizes.
VC Spectra (SPCT) is making waves in the cryptocurrency world as it outshines many top altcoins and reports significant gains. VC Spectras (SPCT) innovative decentralized hedge fund has been a standout performer, surpassing the growth of several well-established digital assets.
VC Spectra (SPCT) is redefining blockchain investments, offering unique advantages like exclusive access to pre-ICOs, diversified portfolios, and rewarding incentives, making it an attractive cryptocurrency for beginners.
VC Spectras (SPCT) impressive journey began with a private presale that raised a substantial $2.4 million.
Subsequent public presale stages delivered remarkable returns, with Stage 1 witnessing a notable 37.5% increase from its initial price of $0.008 to $0.011. Stage 2 stole the spotlight, skyrocketing by an astonishing 212.5%, reaching $0.025 earlier than anticipated.
Currently, in Stage 3, VC Spectra (SPCT) is at $0.025, offering a promising 32% return on investment before progressing to Stage 4, where the price is projected to rise to $0.033.
Excitement is building as VC Spectra (SPCT) gears up for its public platform launch after the presale, with an expected price of $0.08, reflecting an impressive 220% increase from its current level.
To learn more about VC Spectra (SPCT), visit:
Buy Presale: https://invest.vcspectra.io/login
Website: https://vcspectra.io
Telegram: https://t.me/VCSpectra
Twitter: https://twitter.com/spectravcfund
Disclaimer:This is a paid release. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of Bitcoinist. Bitcoinist does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.
View post:
Ethereum (ETH) to Enter New Era With Binance’s Latest Integration – U.Today
Read U.TODAY on
Google News
Ethereum is set to enter a new era of adoption as top crypto exchange Binance has announced a new ETH integration.
Binance announced in an official blog post that it has completed the integration of Ethereum (ETH) on the zkSync Era network. According to the crypto exchange, deposits and withdrawals for Ethereum (ETH) tokens are now available on the zkSync Era network.
Binance shared the details of the Ethereum (ETH) smart contract address on the zkSync Era network while sharing the time frame for this to be completed.
Deposits of Ethereum (ETH) on the zkSync Era network are expected to take 24 hours to be credited to users' Binance accounts due to zkSync Era finality mechanics.
zkSync is a Layer 2 Ethereum network that leverages the zero-knowledge protocol and roll-up technology to speed up transaction processing time and save costs while maintaining security standards on the main network.
The zkSync Era mainnet was launched in March and has welcomed several projects. Per DefiLlama data, zkSync Era has hit $122.38 million in DeFi total value locked (TVL).
Following new 19b-4 filings by the Chicago Board Options Exchange, which will "ultimately start the clock" for an SEC decision, the race for the first Ethereum exchange-traded fund in the U.S. has officially begun.
card
On Sept. 6, the CBOE submitted two 19b-4 applications to the U.S. Securities and Exchange Commission asking for listing of the investment products ARK 21Shares Ethereum ETF and VanEck Ethereum ETF on the CBOE's BZX Exchange.
VanEck's S-1 submission dates back to July 2021, while ARK Invest and 21Shares teamed up to submit an S-1 to the SEC on Sept. 6.
Bloomberg analyst James Seyffart referred to this, stating that the Spot Ethereum ETF Race is officially on. Although he says it might be too early to predict, he estimates the final deadline for these applications to be around May 23, 2024.
Read more from the original source:
Ethereum (ETH) to Enter New Era With Binance's Latest Integration - U.Today
MetaMask Introduces Ethereum-to-Fiat Conversion Feature – The Crypto Basic
MetaMask, the prominent cryptocurrency wallet, has revealed a new functionality enabling users to exchange Ethereum (ETH) for fiat currency.
In a September 5 announcement on X, MetaMask stated that individuals with crypto wallets linked to its Portfolio platform can convert Ether into fiat currency and transfer the funds to their bank accounts in the United States, United Kingdom, and select European regions.
- Advertisement -
MetaMask also mentioned that the initial launch will exclusively support ETH but intends to extend this feature to native gas tokens on layer two networks in upcoming developments.
Approximately five months after introducing a buying feature, MetaMask unveiled a new selling function, permitting users to sell cryptocurrencies and receive fiat funds directly from their bank accounts, PayPal, or debit and credit cards.
During the initial launch, MetaMask outlined its ambitious goal of extending the buy crypto service to encompass over 90 different tokens, making it accessible to users in more than 189 countries.
MetaMask has actively engaged in strategic partnerships with several crypto on-ramp providers, further enhancing its ecosystem. Notable collaborations include ventures with MoonPay, Sardine, Transak, and Wyre.
These partnerships play a pivotal role in simplifying the process of converting between fiat currency and cryptocurrencies, solidifying MetaMasks reputation as a user-friendly gateway into the digital asset realm.
In addition to these consumer-oriented features, MetaMask has demonstrated its commitment to addressing the needs of institutional clients.
In March, the platform introduced a specialized staking marketplace tailored to cater to the requirements of institutional investors, underscoring its dedication to serving a diverse spectrum of users, ranging from individual retail traders to sizable institutions.
Apart from the Sell feature, MetaMask offers support for Ethereum and a wide range of ERC-20 tokens.
Furthermore, it extends its compatibility to various EVM-compatible networks, such as Arbitrum, Optimism, BNB Chain, Polygon, and Avalanche, along with its associated tokens.
Follow Us on Twitter and Facebook.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basics opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
Read the original here:
MetaMask Introduces Ethereum-to-Fiat Conversion Feature - The Crypto Basic
Ethereum thought leaders are ‘coping’ with Lido dominance, says … – Blockworks
In a spicy take on Lidos liquid staking dominance, David Rodriguez says Ethereum thought leaders arent being realistic about the problem and are in fact, coping.
The Blockworks Research analyst doesnt hold back in his critique of some of the communitys suggestions to address the situation.
Rodriguez explains that some leaders are suggesting Lido should take one for the team, voluntarily limiting itself to 22% staking dominance well below its current position at around 32% of the market.
Competing liquid staking providers are valiantly promising that they would, of course, do the same, Rodriguez says, if only they could first grow more than ten times in size to even face the same dilemma.
On the 0xResearch podcast (Spotify/Apple), Rodriguez argues that the suggested tactics to limit Lidos dominance are short-sighted.
The overall argument, Rodriguez says, is that if Lido has more than 33% market dominance, that hurts Ethereums credible neutrality. Lido essentially becomes a governance wrapper over Ethereum, which specifically was never meant to have on-chain governance.
If Ethereum, as a community, decides that Lido is too powerful [and] decides to enshrine liquid staking into the protocol, or decides to straight-up fork Lido, he says, that harms the property rights of developers and users of Ethereum.
Looking back at earlier days of liquid staking on Ethereum, Rodriguez says, we easily could be in a world today where centralized exchanges are the majority of the stakers of Ethereum.
The reason centralized exchanges are not the monopoly powers over Ethereum, Rodriguez says, is specifically because of Lido. He adds that Lido is implementing a staking router to help diversify staking to smaller validators.
Rodriguez says Lido is implementing dual-governance in the future, whereby staked ETH holders will have veto rights in the event of any malicious act by Lido governance.
Lido is demonstrating through these actions, he says, that it is trying to become incentive-aligned with Ethereum long-term. In fact, no protocol other than Uniswap, perhaps, is more aligned with Ethereum, argues Rodriguez.
Were going to ultimately have a winner-take-most or a winner-take-all scenario in an open source world, he says, where network and liquidity effects really drive brand and overall market dominance in the future.
The cause for concern is over-blown, he says.
Self-limiting to a maximum market dominance of 22% loses nuance, says Blockworks research analyst, Ryan West. Solving the problem requires addressing the mechanism design from a core protocols perspective, West says.
If the only solution you have to this is asking and begging the protocols themselves to self-limit, he says, its a problem with the underlying design.
West explains that limiting staking dominance to 22% or less would theoretically make it difficult to take over the network as more than three entities would have to collude to exceed 66% of the entire stake. I believe thats the reasoning behind it, he says, but at the same time, when you look at the design of these LST protocols, its not like its one entity staking this ETH.
There are decentralized solutions and Lido is obviously working towards those, he says.
You should look less so at the number of ETH staked by these operators and instead look at the underlying design, West says. As long as its aligned with Ethereum, then I think thats good enough for me.
Get the days top crypto news and insights delivered to your email every evening.Subscribe to Blockworks free newsletternow.
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, cant-miss tweets and more fromBlockworks Researchs Daily Debrief.
Cant wait? Get our news the fastest way possible.Join us on Telegramand follow us onGoogle News.
Read more:
Ethereum thought leaders are 'coping' with Lido dominance, says ... - Blockworks
Polygon, Addressing Ethereum’s Constraints – CryptoCoin.News
Polygon Overview
Polygon, formerly known as Matic Network, is an interoperability and scaling framework that aims to address some of the limitations of the Ethereum blockchain. Ethereum has gained significant popularity in the blockchain space, but it suffers from certain drawbacks, such as throughput, poor user experience, and lack of community governance. Polygons mission is to overcome these limitations and create a more efficient and user-friendly ecosystem for developers and users alike.
While Ethereum revolutionized the blockchain industry with its smart contract functionality, it still faces several challenges. One major limitation is throughput, which refers to the number of transactions the network can handle per second. Ethereums current network congestion often leads to high gas fees and slow transaction confirmation times.
Another limitation is the poor user experience. Ethereums complex and technical interface makes it difficult for average users to interact with decentralized applications (dApps) and smart contracts. This hampers mainstream adoption, as it poses a significant barrier to entry for non-technical users.
Furthermore, Ethereum lacks a clear mechanism for community governance. Decisions regarding upgrades, protocol changes, and resource allocation are often centralized and controlled by a few leading entities. This centralized decision-making process goes against the core principles of decentralization and community-driven governance.
Polygon addresses Ethereums throughput limitations by providing a solution that scales the Ethereum blockchain. It allows developers to launch customizable blockchain networks called Polygon networks that are built on top of Ethereum and offer specific functionalities. These networks can be tailored to handle different transaction volumes and computational requirements, increasing the overall throughput of the ecosystem.
By creating such interoperable networks, Polygon enables small transactions to be settled on these chains, reducing the load on the Ethereum mainnet. This approach offloads a significant portion of the network traffic, resulting in improved throughput and faster transaction confirmations. Users can enjoy a seamless experience with reduced gas fees and faster transaction execution.
In addition to addressing throughput limitations, Polygon also focuses on enhancing the user experience of interacting with blockchain applications. Polygon achieves this through its user-friendly interface and integration with existing Ethereum tools and resources.
With Polygon, developers can seamlessly deploy their Ethereum-compatible dApps on the Polygon networks. Users can access these dApps using their existing Ethereum wallets and tools, without the need for any additional setup or learning curve. This streamlined experience makes it easier for users to explore and engage with decentralized applications, making blockchain technology more accessible to a wider audience.
Recognizing the importance of decentralized decision-making, Polygon introduces community governance to the Ethereum ecosystem. The MATIC token, which serves as the native token of the Polygon ecosystem, plays a crucial role in this governance mechanism. MATIC token holders have the power to vote on proposals, upgrades, and significant changes to the network.
This community-driven governance empowers the users and stakeholders of the Polygon ecosystem to collectively decide on the future direction of the project. It ensures that decision-making power is distributed among the community and promotes a more transparent and inclusive approach to blockchain governance.
One of the key features of Polygon is its ability to launch customizable blockchain networks. Developers can leverage this capability to tailor their blockchain networks to meet their specific requirements and functionalities. They can define the transaction throughput, computational capabilities, and consensus mechanisms of their networks, enabling them to create efficient and scalable solutions.
These customizable blockchain networks offer flexibility and versatility to developers, empowering them to build applications and services that cater to diverse use cases. This approach encourages innovation and allows developers to explore new possibilities within the blockchain ecosystem.
Polygons architecture is designed to provide a scalable and interoperable framework for Ethereum-compatible blockchains. It consists of several layers that work together to create a seamless experience for developers and users.
The first layer is the Ethereum layer, which serves as the foundation for the entire ecosystem. It ensures compatibility with the Ethereum Virtual Machine (EVM) and enables smooth integration with existing Ethereum tools and resources.
The security layer is responsible for the overall security of the Polygon ecosystem. It incorporates various security mechanisms, including optional shared security, to ensure the integrity and trustworthiness of the network.
The Polygon networks layer is where the customizable blockchain networks are launched. These networks can be optimized for specific use cases and provide the required scalability and functionality.
Finally, the execution layer handles the execution of smart contracts and transactions within the Polygon ecosystem. It leverages various scalability technologies, such as POS Chain, Plasma Chains, ZK-rollups, and optimistic rollups, to enhance the throughput and performance of the network.
Polygon aims to create an interconnected landscape of blockchains, where different chains can plug into a common hub and leverage each others strengths. This interoperability allows the transfer of assets and data across different blockchains, enabling developers to build cross-chain applications and services.
By connecting various blockchains, Polygon overcomes the limitations of individual chains and harnesses the collective power of the entire ecosystem. This approach promotes collaboration and enables blockchain networks to work together seamlessly, expanding the possibilities of decentralized applications and services.
To address the scalability challenge of the Ethereum network, Polygon incorporates various scalability technologies into its framework. These technologies include POS Chain, Plasma Chains, ZK-rollups, and optimistic rollups.
POS Chain, or proof-of-stake chain, is a scalable second-layer solution that operates on top of Ethereum. It uses a consensus mechanism based on staking and ensures faster confirmation times and lower fees compared to the Ethereum mainnet.
Plasma Chains are another scalability solution that leverages Ethereums Plasma framework. They allow for the creation of child chains that can process a high volume of transactions and settle them on the Ethereum mainnet periodically.
ZK-rollups, or zero-knowledge rollups, are a technology that combines the scalability of rollups with the privacy and security of zero-knowledge proofs. They enable a significant increase in transaction throughput while maintaining the trust and privacy of the underlying blockchain.
Optimistic rollups are a layer 2 scaling solution that enables faster and cheaper transactions by batching multiple transactions into a single proof. They achieve scalability by optimizing the way transactions are processed and verified.
By implementing these scalability technologies, Polygon significantly improves the performance and scalability of the Ethereum network, making it more capable of handling large-scale applications and high transaction volumes.
Polygon faces competition from other blockchain interoperability projects like Polkadot and Cosmos. These projects also aim to create an interconnected ecosystem of blockchains and overcome the limitations of individual chains.
Polkadot, for example, provides a scalable framework for creating and connecting multiple blockchains in a heterogeneous manner. It focuses on interoperability between blockchains with different architectures and consensus mechanisms.
Cosmos, on the other hand, offers an interoperability protocol that enables independent blockchains to communicate and interact with each other. It aims to create an internet of blockchains, where different chains can seamlessly exchange assets and information.
While all these projects share the goal of blockchain interoperability, each has its unique approach and features. The competition among these projects drives innovation and pushes the boundaries of what is possible in the blockchain space.
In conclusion, Polygon is a comprehensive interoperability and scaling framework that addresses the limitations of the Ethereum blockchain. With its focus on throughput improvements, user experience enhancements, community governance, and customizable blockchain networks, Polygon aims to create a more efficient and user-friendly ecosystem. By incorporating various scalability technologies and promoting blockchain interoperability, Polygon aims to position itself as a prominent player in the blockchain industry and drive the adoption of decentralized applications and services.
See more here:
Polygon, Addressing Ethereum's Constraints - CryptoCoin.News