Category Archives: Smart Contracts
Plasma vs Sharding: What’s the Better Innovative Scalability … – Cryptopolitan
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Blockchain scalability remains a pivotal challenge, prompting the exploration of innovative blockchain scalability solutions like Plasma and sharding. As decentralized networks continue to evolve, the need to process transactions more efficiently and accommodate growing user demands has become increasingly pressing. Both Plasma and sharding offer distinctive approaches to address this fundamental challenge, aiming to optimize Read more
Blockchain scalability remains a pivotal challenge, prompting the exploration of innovative blockchain scalability solutions like Plasma and sharding.
As decentralized networks continue to evolve, the need to process transactions more efficiently and accommodate growing user demands has become increasingly pressing. Both Plasma and sharding offer distinctive approaches to address this fundamental challenge, aiming to optimize transaction throughput and overall network performance.
In this guide, we explore the intricacies of these two strategies, uncovering their unique features, benefits, and potential drawbacks. By examining the core principles, mechanisms, and real-world implications of each approach, we gain a comprehensive understanding of how these technologies shape the landscape of blockchain scalability. Join us as we unravel the complexities of these competing solutions and shed light on their contributions to the future of decentralized systems.
Plasma, commonly known as Ethereum Plasma because it was first proposed by Ethereum co-founder Vitalik Buterin, is a scaling solution aimed at enhancing the performance of the Ethereum network. Its core premise revolves around establishing a network of side chains that maintain minimal interaction with the Ethereum blockchain, commonly referred to as the main chain. The foundational structure of Plasma adopts a hierarchical arrangement resembling a blockchain tree, wherein multiple child chains are layered atop the primary chain.
The Plasma framework empowers the creation of an extensive array of side chains (also called child chains), essentially acting as condensed replicas of the Ethereum blockchain through the utilization of smart contracts and Merkle Trees.
These side chains are uniquely designed to execute customized smart contracts, accommodating diverse requirements of various entities. This adaptability enables the creation of distinct Plasma smart contracts tailored to specific use cases, thereby allowing companies to harness the potential of the Plasma framework to meet their individual needs.
By capitalizing on the security provided by the main chain, Plasma facilitates the deployment of numerous child chains. These chains operate independently, adhering to predetermined guidelines and pursuing specific objectives that may not necessarily align with those of the main chain. This design strategy aims to alleviate congestion concerns within the primary Ethereum blockchain.
To grasp the mechanics of Ethereum Plasma, its vital to explore the foundational components that underpin this network:
The concept of off-chain computation establishes a sense of trust within the Ethereum network participants. It facilitates the settlement of multiple transactions outside the primary Ethereum blockchain. This principle stems from the notion that not every transaction necessitates validation from all nodes on the main chain.
Consequently, this selective transaction validation eases the workload on the primary chain, alleviating congestion and enhancing efficiency. Developers meticulously structure Plasma blockchains, often employing a single operator to expedite transaction processing, resulting in swifter and cost-effective transactions.
Ethereum Plasma adopts the practice of periodically publishing state commitments on the Ethereum mainnet. This synchronization ensures mutual awareness of the child chains state and maintains compatibility between them.
This interplay is vital for Plasmas ability to leverage the security of the main chain. While transactions occur off-chain, final settlements transpire within the primary Ethereum execution layer. This interlocking relationship prevents inconsistencies and safeguards against the proliferation of invalid transactions.
Seamless interaction between both blockchains is a fundamental prerequisite when amalgamating the Ethereum main chain with Plasma.
This necessitates establishing a communication channel that facilitates asset transfer, thus realizing the scalability solution. Plasma executes this via a master contract on Ethereum, orchestrating the mechanics of entries and exits.
Dispute resolution stands as a pivotal facet of Ethereum Plasmas scalability design. A mechanism rooted in transaction integrity enforcement is employed to counter the possibility of malicious actions by participants.
This safeguard, known as Fraud Proof, is devised to identify participants engaging in suspicious behavior. Fraud proofs serve as claims contesting the validity of specific state transitions.
Users invoke them when detecting potential double-spends, where an asset is attempted to be spent twice before confirmation completion. Vigilance and prompt reporting are key to the effectiveness of this process. Users who promptly publish fraud proofs halt illicit transactions, leading to punitive action against culprits.
In essence, Plasma represents an off-main-chain solution strategically designed to significantly enhance the operational efficiency of the Ethereum network and analogous blockchains. This optimization is achieved by offloading a substantial portion of processing tasks from the main chain onto a network of smaller, specialized chains, each serving distinct functions.
Although Plasma transactions are executed off-chain, they are settled on the main Ethereum execution layer to ensure security guarantees. However, finalizing off-chain transactions requires periodic publication of state commitments by the operator, responsible for generating plasma chain blocks. These commitments, resembling Merkle roots derived from Merkle trees, are cryptographic ways of committing to values without revealing them. They prevent altering committed values and play a pivotal role in upholding security.
Merkle roots are cryptographic constructs that enable condensing large data amounts. These roots, also termed block roots, can represent entire block transactions, aiding in confirming small datas inclusion within a broader dataset. Users can validate data inclusion using Merkle proofs, especially to demonstrate transaction presence in a specific block.
Merkle roots serve a vital purpose by conveying off-chain state data to Ethereum. Analogously, they function as save points, where the operator signifies the Plasma chains state at a specific time and corroborates it with a Merkle root as evidence. This act of committing to the ongoing plasma chain state using a Merkle root is termed a state commitment.
Although originally conceptualized by Vitalik Buterin and Joseph Poon in August 2017 to address Ethereums scalability challenges, the Plasma concept exhibits adaptability for integration into other blockchain platforms. Joseph Poon, a proponent of the Lightning Network proposal for Bitcoin, is instrumental in highlighting the synergies between Plasma and Lightning Network as scalability solutions for their respective blockchains. It is important to note that while these solutions share common goals, they employ distinct methodologies and mechanisms.
The Ethereum Plasma project remains an open-source initiative, with its code repository accessible on GitHub. For a deeper dive into the technical intricacies, the official Plasma whitepaper serves as a valuable resource. Despite being in the nascent stages of development, the concept of Plasma holds immense promise. Successful implementation has the potential to usher in a new era of efficiency for the Ethereum network, while also serving as a foundational template for other blockchain networks seeking scalability solutions.
Sharding is a technique that involves dividing blockchains or databases into smaller, partitioned sections called shards, each managing specific data segments. This alleviates the strain on a single chain processing all network transactions. Shards function as individual blockchains, capable of handling their transactions, while a main chain or beacon chain oversees shard interactions. This Layer 1 network upgrade enhances scalability by distributing the workload. Ethereum was among the first blockchains to adopt sharding as it started its transition to a scalable Proof of Stake network, with a Beacon Chain coordinating multiple shards.
A significant advantage of sharding is simplified node operation. As data is divided across shards, validator nodes no longer need to store the entire blockchain history, focusing only on data integrity confirmations. Sharded networks complement rollups, which improve scalability by validating off-chain transactions and consolidating them on the main chain. Sharding enhances rollup efficiency by allowing them to report states more swiftly.
However, sharding introduces security concerns. A malicious actor gaining control of a shard could potentially disrupt other parts of the network. Proper regulations and safeguards are necessary to prevent this issue, as taking over a shard is comparatively easier than hijacking an entire non-sharded network.
Sharding plays a pivotal role in achieving efficient data storage distribution, leading to enhanced cost-effectiveness in rollups and simplified node operations. This approach empowers layer 2 solutions to leverage Ethereums security while concurrently maintaining lower transaction fees.
The Ethereum blockchain currently hosts over three thousand decentralized applications (dApps), underscoring the pressing need for scalability solutions like sharding.
Sharding entails the division of the network into smaller units or partitions, each of which substantially boosts the networks Transactions Per Second (TPS).
However, while sharding may appear straightforward, it involves several crucial components and intricacies:
Nodes within a blockchain network handle the processing and management of all transaction volumes occurring within the network. These autonomous entities are tasked with preserving and storing decentralized network-generated data, including account balances and transaction histories. Nodes manage all activities, data, and transactions within the network, a design decision that has persisted since network inception.
However, this design hampers transaction processing speed, even though it maintains blockchain security by storing every transaction on each node. This sluggish transaction processing stands as a hindrance to a future where blockchains are expected to manage millions of transactions.
Sharding can be achieved through the horizontal partitioning of databases, wherein rows are divided into segments or shards based on their characteristics.
For instance, one shard could focus on storing transaction history and the current state of a specific category of addresses. Shards might also be categorized by the type of digital asset they contain, allowing for specialized transaction handling involving those assets.
The processing capacity of blockchain networks is constrained due to the necessity for all nodes to reach consensus on transaction legitimacy before processing. This requirement maintains the decentralized nature of networks like Ethereum and Bitcoin, wherein every node retains the entire blockchain history and processes each transaction.
This design fortifies network security against hostile takeovers or transaction alterations, even though it hampers scalability. Sharded blockchains introduce an alternative by allowing nodes to forgo downloading the full history or validating every transaction. This bolsters network performance, enhancing its ability to accommodate more users.
Shardings foremost benefit is the scalability boost it affords blockchains. Sharding permits the integration of additional nodes and larger data sets without significantly slowing down transaction speeds. This holds potential for expediting the adoption of blockchain technology across industries, particularly in finance, where quicker transactions can foster competition against centralized payment systems.
Sharding brings two supplementary advantages: heightened network participation and improved user accessibility. Anticipated enhancements in Ethereums sharding may reduce the hardware prerequisites for running a client, enabling participation from personal computers and mobile devices. This democratization of access can broaden network participation.
Its important to note that shardings application to blockchain networks is in the preliminary testing phase. It is mostly associated with the following risks:
One security concern pertains to shard collisions, where one shard takes over another or overrides its data. This risk could lead to data loss or the introduction of corrupted data by malicious shards. Ethereum 2 mitigates this risk by randomly assigning nodes to shards and reassigning them at intervals.
Considering each shard as an independent blockchain network with its users and data reveals a potential riskshard corruption. An attacker gaining control of a shard could introduce fraudulent transactions. Ethereum addresses this through random shard assignment and reassignment, thwarting attackers ability to predict and exploit vulnerabilities.
Plasma, pioneered by Vitalik Buterin and Joseph Poon, introduces side chains that interact with the main chain minimally. This architecture enables creation of numerous child chains with customized smart contracts, easing congestion on the primary chain while maintaining security.
In contrast, sharding focuses on partitioning the network into smaller, manageable segments known as shards. Each shard processes specific transactions, alleviating strain on a single chain and bolstering scalability.
While both Plasma and sharding share the goal of scalability, they possess distinctive mechanisms. Plasma emphasizes side chains, diversifying use cases, while sharding focuses on segmenting the main chain for increased efficiency. Their ongoing development is set to reshape blockchains potential, offering alternatives to tackle scalability challenges.
A sidechain functions as an independent blockchain that operates alongside a parent chain, interconnected through a network bridge for interaction. On the other hand, Plasma constitutes a structure of child chains strategically crafted to enhance the scalability of a parent chain operating in tandem.
Initially conceived as the MATIC Network and later rebranded as the Polygon Network, it commenced as a Plasma framework. Subsequently, this blockchain system has advanced into a comprehensive Layer 2 blockchain protocol.
Sharding increases a blockchain's capacity to process transactions by distributing the workload among shards. It allows for more users and transactions without sacrificing network performance.
Plasma's key advantage lies in its ability to offload transactions to side chains, reducing congestion on the main chain. It enables faster transaction processing and customization of chains for different use cases, while still benefiting from the main chain's security.
Yes, sharding and Plasma are complementary solutions that can be used in conjunction to achieve even greater scalability. Sharding optimizes the main chain, while Plasma offers the option to offload transactions to secondary chains.
Ethereum is actively working on implementing sharding as part of its Ethereum 2.0 upgrade. Matic Network, now Polygon, began as a Plasma framework and evolved into a Layer 2 solution.
No, there are various scalability solutions apart from sharding and Plasma, including state channels, sidechains, and rollups. Each approach addresses scalability challenges in different ways, catering to specific blockchain requirements.
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Plasma vs Sharding: What's the Better Innovative Scalability ... - Cryptopolitan
Strategic Steps and Pivotal Considerations In Building A DLT … – Cryptopolitan
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In todays advancing business world, harnessing innovative technologies is pivotal for fostering growth, sustainability, and competitive advantage. Among these groundbreaking advancements, Distributed Ledger Technology (DLT) has emerged as a transformative force, offering unprecedented opportunities to establish dynamic and interconnected business ecosystems. This Cryptopolitan guide explores creating a DLT business ecosystem, illuminating the strategic steps and Read more
In todays advancing business world, harnessing innovative technologies is pivotal for fostering growth, sustainability, and competitive advantage. Among these groundbreaking advancements, Distributed Ledger Technology (DLT) has emerged as a transformative force, offering unprecedented opportunities to establish dynamic and interconnected business ecosystems. This Cryptopolitan guide explores creating a DLT business ecosystem, illuminating the strategic steps and pivotal considerations required for successful implementation.
DLT, commonly associated with blockchain, transcends traditional business paradigms by enabling secure, transparent, and decentralized data sharing and collaboration. As organizations increasingly recognize the limitations of isolated operations, the concept of a business ecosystem gains prominence. Unlike linear value chains, a business ecosystem encompasses a network of interdependent entities that collectively deliver enhanced value to end customers while fostering mutual growth.
Throughout this article, we will navigate the multifaceted landscape of DLT-driven business ecosystems. From elucidating the core concepts underpinning DLT to outlining pragmatic approaches for ecosystem development, we will provide insights that empower entrepreneurs, business leaders, and innovators to harness the full potential of DLT for forging resilient, symbiotic, and innovation-driven business ecosystems. By understanding the strategic synergy between DLT and ecosystem dynamics, organizations can chart a course toward sustainable success in an increasingly interconnected global economy.
Distributed Ledger Technology (DLT) refers to the technological framework and protocols enabling concurrent access, validation, and updating of records within a networked database.
DLT forms the foundation of blockchain systems, enabling users to observe all modifications along with their originators. This minimizes the necessity for data auditing, upholds data reliability, and restricts access solely to authorized parties.
Distributed Ledger Technologies (DLTs) provide a secure and precise means of storing information through cryptography. Data access is facilitated by cryptographic keys and signatures. Once stored, this information can transform into an unalterable database; the networks regulations, embedded within the database programming, oversee the ledger.
The immutability of distributed ledgers depends on their programming; they remain unchangeable if designed to be so. Blockchains, due to their decentralized public nature, inherently possess immutability.
The decentralized, encrypted nature of distributed ledgers contributes to their resilience against cybercrime. To succeed, attackers must breach all copies distributed across the network simultaneously. Moreover, the peer-to-peer sharing and updating of records streamline the process, enhancing speed, efficiency, and cost-effectiveness.
Every device in the distributed ledger network retains a ledger copy, known as a node. The network can comprise numerous nodes. Any ledger alterations, such as data transfer between blocks, are logged across all nodes. As each node possesses a ledger copy, it publishes its version featuring the latest transactions.
When consensus is reached within the network regarding the latest ledgers validity, transactions are encrypted, finalized, and serve as a foundation for subsequent transactions. This is how blockchains evolveeach block contains encrypted data pertaining to the preceding block, ensuring their tamper-resistant nature.
Various industries utilize Distributed Ledger Technology for diverse purposes, often as platforms for scalability and utilization. Hyperledger Fabric is a prominent example, offering modularity and scalability for businesses to create solutions spanning numerous sectors. Industries embracing DLT solutions encompass aviation, education, healthcare, insurance, manufacturing, transportation, and utilities.
DLTs hold significant potential for improving supply chains. These chains suffer from inefficiencies, inaccuracies, and vulnerabilities. Fujitsu, a global IT company, has harnessed distributed ledger technology to enhance supply chain transparency and combat fraud by securing and tracking data.
A business ecosystem comprises various entities such as suppliers, distributors, customers, partners, and even competitors who interact with each other to create value within a specific industry or market. These interactions can range from sharing resources and information to collaborating on projects and innovations.
By leveraging a DLT-based ecosystem, businesses can streamline these interactions, mitigate trust issues, and establish a foundation for sustainable growth.
Identify Participants and Roles: Define the various participants in your ecosystem and their respective roles. This could include suppliers, distributors, service providers, customers, and more. Determine how DLT can enhance their interactions and bring value to each participant.
Select the Right DLT Platform: Choose a DLT platform that aligns with the specific needs of your ecosystem. Ethereum, Hyperledger Fabric, and Corda are among the popular options. Consider factors such as scalability, security, and consensus mechanisms.
Design Smart Contracts: Smart contracts are self-executing contracts with terms and conditions directly written into code. These contracts automate and enforce agreements between participants, ensuring transparency and reducing the need for intermediaries. Design smart contracts that facilitate processes such as payment settlements, supply chain tracking, and data sharing.
Establish Consensus Mechanisms: Consensus mechanisms are protocols that ensure all participants agree on the state of the shared ledger. Different mechanisms, such as Proof of Work (PoW) and Proof of Stake (PoS), offer varying levels of security and efficiency. Choose a consensus mechanism that suits the needs of your ecosystem.
Ensure Data Privacy and Security: Implement encryption and access controls to safeguard sensitive data shared within the ecosystem. DLT offers cryptographic techniques that enhance data privacy while allowing authorized parties to access relevant information.
Enable Interoperability: In a diverse ecosystem, participants might use different systems and technologies. Ensure that your DLT solution supports interoperability, allowing seamless data exchange between different platforms and systems.
Encourage Participation and Collaboration: Incentivize participants to engage actively within the ecosystem. Use tokens or rewards to encourage collaboration, innovation, and value creation.
Provide a User-Friendly Interface: Not all ecosystem participants will be tech-savvy. Develop an intuitive user interface that simplifies interactions with the DLT ecosystem. This enhances adoption and minimizes friction.
Continuous Monitoring and Improvement: Regularly assess the performance of your DLT-based ecosystem. Collect feedback from participants and identify areas for improvement. DLT ecosystems, like any other system, require ongoing optimization.
Distributed Ledger Technology (DLT) holds a vast array of practical applications that reshape how we interact, transact, and validate information in a decentralized and secure manner. It transcends conventional boundaries by underpinning a myriad of applications that redefine trust, security, and efficiency in various sectors. As technology continues to evolve, exploring these innovative applications underscores the transformative power of DLT in reshaping our digital and physical interactions.
Here are several compelling examples of specific use cases that highlight the transformative potential of DLT:
DLT stands as a foundational tool for recording transactions in a secure and transparent manner. While conventionally associated with financial records, DLT extends beyond fiscal contexts, capable of chronicling diverse transaction types.
By establishing a decentralized ledger, DLT ensures that every inflow and outflow is traceable and verifiable, eliminating the need for a central authoritys validation.
One of DLTs groundbreaking utilities lies in crafting impregnable digital identities. Through its tamper-proof nature, DLT establishes a reliable mechanism to verify individuals identities, safeguarding against identity theft and unauthorized access.
This innovation promises a more secure and trustworthy foundation for identity management in our digital age.
Leveraging DLT to develop secure and transparent voting systems heralds a new era of trust in democratic processes. By creating an unalterable record of votes, DLT eradicates the risks of voter fraud and manipulation, preserving the integrity of elections.
This ledger-driven approach fosters a collective opinion repository, enhancing credibility and equity in decision-making.
DLT introduces the concept of smart contracts, revolutionizing how agreements are executed. These contracts automatically fulfill predetermined terms based on real-time conditions.
For instance, an insurance claim could promptly trigger fund release once verified, minimizing errors and discouraging illicit activities by malicious entities.
The potential of DLT to record property transactions holds great promise. By forging an immutable record of property ownership and transfers, DLT combats fraudulent practices while enhancing transparency.
Although certain challenges exist in transcribing physical asset ownership to the digital realm, DLT can serve as an irrefutable source of truth for ownership records.Benefits of a DLT-Powered Business Ecosystem.
As businesses embrace the need for interconnectedness and collaboration, creating a robust ecosystem has become a strategic imperative.
Leveraging Distributed Ledger Technology offers a powerful means to achieve this goal. By carefully designing the ecosystem, selecting the right DLT platform, and fostering collaboration among participants, businesses can pave the way for a thriving ecosystem that drives growth, innovation, and sustainable success in an increasingly competitive world.
Smart contracts are self-executing agreements coded into the DLT. They automate processes and trigger actions based on predefined conditions. In a business ecosystem, smart contracts streamline interactions, ensuring that agreed-upon terms are automatically executed, reducing the need for intermediaries.
Yes, DLT-powered ecosystems can be adapted for businesses of all sizes. Small businesses benefit from reduced barriers to entry, while larger enterprises can leverage DLT to optimize complex operations and collaborations.
DLT-powered ecosystems are designed to be adaptable to technological advancements. As long as the underlying DLT framework remains relevant, these ecosystems can evolve to incorporate emerging trends and maintain their relevance.
Yes, DLT-powered ecosystems can coexist and even complement traditional models. Businesses can strategically integrate DLT to enhance specific aspects of their operations while retaining elements that continue to serve them well.
DLT provides a foundation for trust, efficiency, and innovation by enabling participants to share data and execute transactions without relying on a central authority. This fosters a dynamic environment where entities collaborate, exchange value, and collectively deliver enhanced products or services.
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Strategic Steps and Pivotal Considerations In Building A DLT ... - Cryptopolitan
Nearly $1 billion lost to crypto exploits, hacks, and scams in 2023 … – Cryptopolitan
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In a year that has seen the cryptocurrency market continue to mature, a darker narrative has also unfolded. Nearly $1 billion has been lost to various forms of cybercrime in the crypto space in 2023, according to a report by CertiK, a blockchain security firm August alone sees $45.8 million in losses Data from CertiK, Read more
In a year that has seen the cryptocurrency market continue to mature, a darker narrative has also unfolded. Nearly $1 billion has been lost to various forms of cybercrime in the crypto space in 2023, according to a report by CertiK, a blockchain security firm
Data from CertiK, a blockchain security company, revealed that the month of August alone accounted for approximately $45.8 million in losses due to crypto-related exploits, hacks, and scams.
The breakdown shows that exit scams were responsible for around $26 million of the losses. Flash loans, a relatively new form of uncollateralized lending in the DeFi space, contributed to about $6.4 million in losses. Exploits, which include vulnerabilities in smart contracts and other blockchain technologies, made up the remaining $13.5 million.
Exit scams have been a significant contributor to the losses, often involving projects that collect funds from investors and then disappear. Flash loans, on the other hand, are a newer phenomenon. These are essentially unsecured loans that must be returned within the same transaction block. While they offer legitimate use cases, they have also been exploited for quick profits, contributing to the losses seen in August.
CertiK has identified several major incidents that resulted in significant financial losses. Specifically, the Zunami Protocol attack led to $2.2 million in losses, the Exactly Protocol exploit resulted in $7.3 million in losses, and the PEPE withdrawal incident resulted in losses of $13.2 million.
As per CertiK, the total loss due to hacks, scams, and exploits in 2023 has surpassed $997 million. This amount includes around $261 million lost to flash loan attacks, over $137 million lost to exit scams, and more than $596 million lost to exploits.
Although the losses in August are still considerable, they are significantly lower than those incurred in the previous month. In July 2023, crypto investors lost about $303 million worth of digital assets in cryptocurrency exploits and hacker attacks.
The losses in August are part of a larger trend that has seen almost $1 billion siphoned off in various crypto-related cybercrimes throughout 2023. This comes at a time when the global cryptocurrency market cap has exceeded $2 trillion, according to data from CoinMarketCap.
The increasing losses indicate that as the market grows, so does the incentive for illicit activities. Regulatory bodies like the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been ramping up efforts to crack down on crypto-related crimes. Still, the numbers suggest that more needs to be done to secure this burgeoning financial ecosystem.
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Nearly $1 billion lost to crypto exploits, hacks, and scams in 2023 ... - Cryptopolitan
Revolutionizing Property Sales: Smart Contracts on the Blockchain – Medium
Technology plays an increasingly pivotal role in streamlining processes and enhancing efficiency in the rapidly evolving landscape of real estate transactions. One of the most revolutionary advancements in this realm is the integration of smart contracts enabled by blockchain technology. Smart contracts can revolutionize the execution of property sales agreements, automating the process while ensuring stringent legal compliance. In this comprehensive article, we will delve into the intricacies of smart contracts, explore their integration with blockchain, and analyze how they can reshape the property sales landscape.
Smart contracts are self-executing digital contracts with the terms of the agreement directly written into lines of code. These contracts automate and enforce the execution of predefined actions once the specified conditions are met. Unlike traditional contracts, smart contracts eliminate intermediaries, enhance transparency, and reduce the likelihood of disputes.
Blockchain serves as the underlying technology that powers smart contracts. A blockchain is a decentralized and immutable ledger that records transactions securely and transparently. Each transaction, including those involving smart contracts, is stored as a block in the chain, creating an unalterable record.
Blockchains decentralized nature ensures that no single entity controls the entire network, enhancing security and reducing the risk of fraud. When applied to property sales agreements, blockchain can act as an incorruptible digital notary, validating and storing every transaction step.
The property sales process typically begins with an offer from the buyer and subsequent acceptance from the seller. Through a smart contract, the terms of the offer can be digitally recorded, and the contract can be programmed to automatically proceed to the next stage upon the sellers acceptance.
Smart contracts can establish an escrow mechanism where the buyers funds are held securely until predefined conditions are met. Once both parties fulfill their obligations, the contract can autonomously release the funds to the seller, eliminating the need for intermediaries.
Transferring property titles often involves a complex web of paperwork and intermediaries. Smart contracts can streamline this process by ensuring the automatic transfer of digital titles once the payment conditions are satisfied. This not only accelerates the transaction but also reduces the likelihood of errors.
Property inspections and verifications can be integrated into the smart contract. IoT devices and external data sources can provide real-time information about the propertys condition. The contract can be programmed to proceed only when the specified conditions are met.
Traditional contracts are susceptible to human errors when amendments or contingencies arise. Smart contracts can be coded to handle such situations precisely, ensuring that changes are executed only when both parties agree and meet the stipulated requirements.
One of the most critical aspects of property sales agreements is legal compliance. Smart contracts, while automating processes, must operate within the boundaries of the law. Heres how compliance can be ensured:
Smart contracts can incorporate legal parameters, such as jurisdiction-specific property laws and regulations, into their code. This ensures that the contracts execution aligns with legal requirements.
Oracles are third-party services that provide external data to smart contracts. By integrating oracles, smart contracts can verify real-world events (e.g., property value assessments) and trigger actions accordingly.
Multi-signature functionality can be employed to ensure that critical decisions within the contract require approval from all relevant parties. This prevents unilateral actions that might breach legal obligations.
Blockchains immutable nature means that every action and transaction is permanently recorded. This creates a comprehensive audit trail that can be used for legal purposes and dispute resolution.
While the potential benefits of smart contracts in property sales are immense, several challenges and considerations must be addressed:
Implementing smart contracts requires a level of technical expertise. Real estate professionals may need to collaborate with blockchain developers to ensure proper integration.
Current blockchain platforms face scalability issues when handling a high volume of property transactions simultaneously. This can impact transaction speed and cost.
Property transactions involve sensitive personal and financial information. Ensuring data privacy and protection is paramount when using blockchain technology.
Despite the advantages, the legal recognition of smart contracts varies across jurisdictions. Clarifying their legal status is essential for widespread adoption.
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Revolutionizing Property Sales: Smart Contracts on the Blockchain - Medium
XRP: Important Warning Issued to Community in Wake of This Development – U.Today
Tomiwabold Olajide
Big announcement made about Xahau, smart contract sidechain for XRPL ecosystem
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As the Xahau whitepaper is out, an important warning has been issued to the XRP community.
On Aug. 28, the whitepaper for Xahau, the smart contract sidechain for the XRPL ecosystem, was published. XRP Labs announced its involvement in the launch, publishing the Xahau whitepaper alongside GateHub, Alloy Networks, EvernodeXRPL and others.
Given the enormous potential and prospects afforded, the announcement was no doubt met with excitement. Given the novelty of the innovation, the XRP community received a warning on how to stay safe and not fall prey to scammers.
XRP Forensics, an X account dedicated to preventing and countering financial crime on XRPL, has alerted the XRP community to a potential wave of scams that might arise as a result of the Xahau announcement.
The XRP community is reminded that Xahau is not live yet as only a whitepaper has been released. Also, there are no Xahau airdrops, nor are there any giveaways. There is also neither a trust line nor an IOU. XRP holders are warned not to share their keys with anyone.
In a tweet, Evernode, a Layer 2 protocol that seeks to bring smart contracts to the XRP Ledger via Hooks, explained more about Xahau.
The Xahau Ledger is the proposed Hooks sidechain and represents the smart contract sidechain for the XRPL ecosystem. The Xahau token is called XRP+, which has its own tokenomics.
When an XRPL account is cloned on Xahau, the account is subsequently credited with 2 XRP+, which covers the account reserve of 1 XRP+ and 5 ledger objects (0.2 XRP+ each).
Evernode emphasizes that there is noneed for users to move or burn any XRP from their XRPL account to clone their XRP account and set up a trust line for the Evers airdrop.
It warns that anybody asking them to move their XRP, share keys, join a Telegram or Discord channel or ask for direct messaging on the X platform is a scammer attempting to steal tokens.
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XRP: Important Warning Issued to Community in Wake of This Development - U.Today
XRPL Labs and Xahau Ledger partner to boost XRP retail adoption Cryptopolitan – Cryptopolitan
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In a significant development for the XRP Ledger ecosystem, XRPL Labs has joined forces with Xahau Ledger to introduce a smart contract sidechain. This partnership aims to expand the capabilities of the XRP Ledger and bring it closer to mainstream retail adoption. The announcement comes when the crypto industry increasingly focuses on smart contracts and Read more
In a significant development for the XRP Ledger ecosystem, XRPL Labs has joined forces with Xahau Ledger to introduce a smart contract sidechain. This partnership aims to expand the capabilities of the XRP Ledger and bring it closer to mainstream retail adoption.
The announcement comes when the crypto industry increasingly focuses on smart contracts and decentralized applications. XRPL Labs, the team behind the self-custody wallet Xumm, has been a key player in the XRP Ledger ecosystem. Their latest endeavor, in collaboration with Xahau Ledger, is set to add multiple features to the XRP Ledger, thereby enhancing its utility and adoption.
Wietse Wind, the founder of XRPL Labs, has been vocal about the potential of this partnership. According to Wind, the smart contract functionality will open doors to many applications that can be integrated into daily life. From supply chain management to decentralized finance, the possibilities are endless.
The partnership also signifies a strategic move for XRPL Labs, which plans to update its Xumm wallet to support multiple XRPL Protocol networks. This includes both the XRPL Mainnet and the upcoming Xahau network. The integration will offer users a seamless experience, allowing them to switch between different networks effortlessly.
While the crypto market responded positively to the announcement, with XRPs trading volume experiencing a slight uptick, the long-term impact of this development remains to be seen. However, XRPL Labs and Xahau Ledger are committed to advancing the XRP Ledger ecosystem.
The Xahau network is expected to be operational by the end of this year, adding another layer of anticipation to the crypto community. As the year progresses, observing how this partnership evolves and what new features it brings will be interesting.
The XRP token is experiencing a bearish trend, showing a 0.06% decline in its price. Its trading at $0.5222, with a 24-hour high of $0.5238 and a low of $0.5127. The tokens market capitalization stands at $27,628,886,604 over the same period.
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XRPL Labs and Xahau Ledger partner to boost XRP retail adoption Cryptopolitan - Cryptopolitan
OpenZeppelin launches version 2.0 of its Defender end-to-end … – SiliconANGLE News
Blockchain security solutions provider OpenZeppelin today announced the launch of Defender 2.0, a developer security platform designed for mission-critical coding, auditing, deploying and monitoring blockchain-based applications.
Defender acts as an operational platform that allows blockchain developers to build, deploy and oversee smart contracts, which are fundamental to decentralized applications. Smart contracts are a type of code that self-execute when certain conditions are met without the need for external interaction, they allow for simplified transactions and eliminate middlemen.
Smart contracts on blockchains are commonly associated with cryptocurrencies and govern transactions between parties. Their coding can also be riddled with vulnerabilities and exploits, which makes them a common target for malicious parties.
The Defender 2.0 release comes at a time when decentralized apps, or dapps, have suffered numerous exploits, leading to high losses. In 2023, decentralized finance projects lost an estimated $479 million in cryptocurrencies to hacks and exploits, with July having the largest recorded losses of $77 million in a month.
Defender 2.0s ultimate goal is to help developers make their smart contracts as secure as possible at all stages from development to deployment and production, said Demian Brener, founder of OpenZeppelin.
The new version of Defender 2.0 bakes in a number of modules in to protect the entire lifecycle of a decentralized blockchain project from code, auditing, deployment to monitoring. When coding, developers will get assistance from a machine learning model that will scan their code as they push to GitHub and identify potential vulnerabilities and suggest improvements before they become a problem. An audit module streamlines the process of discovering critical bugs and prioritizing them.
When deploying, Defender 2.0 automates secure smart contract upgrades and execution that allow operations teams to rapidly get up and running avoid unnecessary delays. This module integrates with Safe, previously Gnosis Safe, a decentralized custody protocol, and Fireblocks Inc.s institutional asset custody services for multiparty computation wallet capabilities to increase security.
Finally, monitoring and operations modules will allow teams to respond immediately if anything goes wrong with the smart contracts once deployed through an analytics system that can detect anomalies or catastrophic events. Users have full visibility into their smart contracts while they are live that analyze their risks and behaviors to give them the time and data in the case of an incident.
Project teams can also extend Defender 2.0s platform with custom code using a new Actions module that will allow them to automate workflows for on-chain and off-chain operations.
By combining so many unique features in one place, Defender 2.0 reimagines how blockchain builders tackle development, deployment, monitoring, and response offering a seamless, convenient, and universal solution, said Brener. By incorporating security early on in the development process, builders will be able to ship faster and more safely.
At launch, Defender 2.0 supports over 30 blockchain mainnets and testnets including Ethereum, Polygon, Arbitrum, Optimism, Coinbase Inc.s Base and zSync Era. Big-name blockchain companies already use Defender, such as zkSync creators Matter Labs, blockchain indexing protocol TheGraph and Mean Finance, to keep their smart contract code and decentralized apps safe.
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OpenZeppelin launches version 2.0 of its Defender end-to-end ... - SiliconANGLE News
Warp Protocol Launches on Neutron, Introducing Limitless Automation Capabilities to Neutron Developers – Yahoo Finance
Warp Protocol deploys on Neutron as a decentralized automation protocol, empowering developers to create novel DeFi application experiences and reduce in-house costs.
SINGAPORE, Aug. 29, 2023 /PRNewswire/ -- In an exciting continuation of its cross-chain expansion plans, Terraform Labs PTE Ltd. ("TFL") announced Warp Protocol's launch on Neutron today. A powerful automation application designed by TFL, Warp enables developers to create innovative DeFi features and experiences that expand their user base by leveraging resource-efficient, decentralized automation.
Terra
"For developers, the appeal is straightforward," says TFL's Head of Apps Vlad Jidkov. "By allowing developers to integrate features that queue any transaction, or atomic list of transactions, to be executed in the future based on any available on-chain data, developers can create novel DeFi experiences that attract new users, reduce in-house automation and DevOps costs, and increase scalability."
Transactions within the Warp economy are called 'jobs,' and the circumstances under which they become executable are called 'conditions'. When conditions are met, anyone running a Warp keeper bot can execute the job in exchange for that job's reward (paid in the chain's native token). Warp thus creates a decentralized marketplace for transaction execution, connecting job creators with job executors once conditions have been met.
Neutron stands tall as a permissionless Cosmos smart contract platform secured by the Cosmos Hub, aiming to revolutionize interchain DeFi by facilitating the seamless deployment of smart contracts and providing tools to interoperate between protocols and appchains. With today's launch, Warp is bringing its limitless on-chain automation capabilities to developers and users across the Neutron ecosystem. Developers can seamlessly integrate Warp functionality into their front or backend in just a few lines of code using Warp's advanced SDKor experiment on the web app.
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Warp's flexible design, including custom conditions, generic messages, and recurring jobs, has the potential to unlock a myriad of DeFi experiences for Neutron users. Conceivable use cases include dynamic NFTs, yield-generating limit orders that earn yield while resting, and automated liquidity management. Warp's debut feature on Neutron will be Astroport limit orders. Compared to market orders that execute at current token prices, limit orders allow users to place buy or sell orders above or below current prices, providing better trade execution.
"Warp allows developers to tap into a decentralized network of keeper bots and bring their ideas to life in the form of new platform features for users," concluded Jidkov. "We designed Warp to capture the full potential of a developer's imagination, so when it comes to the experiences Warp can enable, the sky's the limit."
About Terraform Labs
Established in 2018 and based in Singapore, Terraform Labs (TFL) is a leading software development company specializing in blockchain technology. Powered by a globally distributed workforce of experienced Web3 developers and crypto natives, TFL is one of the few companies to have developed an end-to-end Web3 experience, inclusive of a blockchain, wallet, block explorer, RPC solution, set of apps, and a suite of developer tools. Aiming to enable the next evolution of the Internet built on robust, decentralized economies, TFL serves as a core contributor to the Terra blockchain and is the creator of products and tools such asAlliance, Warp, andEnterprise.
About Warp Protocol
Warp is a decentralized automation protocol that enables developers to integrate cutting-edge new features into their platforms using decentralized, cost-efficient automation. Using Warp, developers (and their users) can schedule transactions for future execution, drawing from any available on-chain data. The transactions are called 'jobs', and the circumstances under which they become executable are called 'conditions'. When conditions are met, a job can be executed by anyone running a Warp keeper bot in exchange for that job's reward (paid in the chain's native token). Limited only by the developer's imagination, Warp's flexible design (including custom conditions, recurring jobs, atomic-list jobs, and generic messages) unlocks numerous use cases, including dynamic NFTs, automated liquidity management, automated trading strategies, efficient stakeholder reward systems, streamlined fund migration, and much more.Website| Docs| Twitter
About Neutron
Neutron is the most secure cross-chain smart-contracting platform. It combines the security of a top 10 blockchain by staked capitalization with bleeding-edge cross-chain infrastructure to enable DeFi applications to securely scale across a growing network of 51+ interconnected blockchains.Website| Twitter | Telegram
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SOURCE Terraform Labs PTE Ltd.
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Know Ethereum’s expanding horizons from finance & beyond – CryptoNewsZ
Ethereum is an open-source, blockchain-based distributed computing platform and operating system featuring smart contract (scripting) functionality. It was initially proposed in late 2013 by Vitalik Buterin, a programmer and cryptocurrency researcher.
Ethereum was first released as Frontier on July 30, 2015. Since its release, the project has quickly become one of the most influential cryptocurrencies available today. With a wide variety of applications already built into the system, it is one of the oldest and largest blockchains currently running in production with millions of daily users.
The core innovation that makes Ethereum stand out from other tokens or coins is its use of Smart Contracts executable code stored within the blockchain that can validate asset transfer rules without external intermediaries such as banks or brokers.
Over the past few years, Ethereum has been at the cutting edge of blockchain development, and its applications have gone beyond finance. The decentralized nature of the platform is what makes it so appealing for a variety of use cases.
Decentralized Finance (DeFi) has become one of the most popular and widely used applications on Ethereum and other blockchains. DeFi leverages smart contracts and token economics to facilitate financial services that are faster, cheaper, and more secure than traditional financial systems while giving users control over their own funds without centralized intermediaries controlling them.
From using Ethereum as a platform to build DApps (Decentralized Applications) to creating marketplaces that enable automated transactions, the potential for blockchain technology is nearly endless. With smart contracts and decentralized applications running on its blockchain, Ethereum can facilitate serverless architectures in several industries like healthcare, food delivery networks, supply chain management systems, and voting systems.
Smart Contracts allow users to enter into agreements without needing any central source of authority or trust, allowing automation across a wide array of use cases from property investment to insurance premiums management and much more.
The introduction of Ethereum has revolutionized the world of sports betting. With its decentralized system, Ethereum allows users so sports betting with one another without having to go through a centralized payment system ot house. This makes the entire process much more secure and eliminates any possibility of manipulation or fraud on behalf of either user. Additionally, bets can be settled faster, greatly increasing speed and efficiency compared to traditional methods. As a result, many top-rated Ethereum sports betting sites have emerged, providing users with a decentralized and secure platform to engage in betting activities.
NFTs have become an increasingly popular way to explore applications beyond finance. From digital art and gaming assets to real estate and more, Ethereum-based non fungible tokens are becoming the future of asset ownership around the world. By tokenizing physical items into digital ones, people can buy items online without a middleman for secure transactions that would otherwise require third-party approval or escrow fees.
As Ethereum technology becomes more advanced with smart contracts and stablecoins, it may even be possible to create blockchain-based supply chain platforms where all participants on these networks can share data securely while still maintaining privacy protocol rights.
Ethereum 2.0 and its transition from proof-of-work to proof-of-stake
Since its launch in 2015, Ethereum has become a global leader in blockchain technology and network architecture. As the second generation of cryptocurrency, it has gained widespread attention for its potential to revolutionize online finance and autonomous transactions.
Recently, however, due to scalability issues inherent with proof-of-work consensus protocols like those used by Bitcoin or Litecoin, Ethereum initiated a large-scale upgrade called Ethereum 2.0, which is set to transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
Proof-of-Stake is an alternative protocol to PoW, which replaces miners with validators who stake their own funds as collateral by locking tokens on the protocol to maintain accuracy on the network while avoiding lags and other performance problems that arise from traditional PoW moves such as mining.
EIP-1559 Upgrade and the London Hard Fork
EIP-1559 and the London Hard Fork were created in response to the growing demand for scalability, security, and functionality. In order for this new version to go live, two major updates would first need to take place: EIP-1559 and the London Hard Fork update.
The EIP-1559 upgrade seeks to introduce a new system of transaction fees on the Ethereum network that acts as both an efficiency measure and anti-spam defense by implementing a dynamic fee structure where users are incentivized to set higher gas prices so they can have their transactions processed quicker than other users waiting in line at any given time.
The other part of EIP-1559 is known as the burn, which sees all fees taken from user transactions burned instead of being sent back into circulation.
Ethereum has played a major role in the evolution of decentralized finance, or DeFi. In 2015, Ethereum launched its first smart contract platform with an open-source blockchain framework called Solidity. From there, it quickly gained global traction as the go-to network for launching and powering distributed applications (dApps).
Building on its success in dApp development, Ethereum positioned itself well within DeFi markets FinTech products such as Decentralized Exchanges (DEXs) and peer-to-peer lending protocols.
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Know Ethereum's expanding horizons from finance & beyond - CryptoNewsZ
Interlay Launches MVP of New Bitcoin Layer-2 BOB – Decrypt
The team behind decentralized Bitcoin infrastructure provider Interlay today unveiled the Minimum Viable Product (MVP) of its BOB ("Build on Bitcoin") solution.
BOB, which comes on the heels of last months launch of Interlays Bitcoin DeFi Hub, is billed as a Bitcoin Layer-2 network that introduces Rust smart contracts compatible with Bitcoin libraries such as Lightning and Ordinals.
With the full support of the Ethereum Virtual Machine(EVM), the developers see BOB as a go-to platform for fostering innovation, experimentation, and the development of novel decentralized applications atop Bitcoin's robust foundation.
Our goal is to enable builders to create truly decentralized applications and innovate on top of Bitcoins existing stack, including Lightning, Ordinals and Nostr, Interlay co-founder Alexei Zamyatin said in a statement. Thereby, BOB bets on enabling builders from Ethereum and other ecosystems to quickly bring their DeFi, NFT and other web3 products to Bitcoins 300 million users.
Interlay, which to date has raised a total of $9.5 million in venture funding, has previously also experimented with tokenized Bitcoin, helping to develop a cross-chain bridge to Polkadot.
Notably, the release includes a demonstration application that implements BRC-21, a novel Bitcoin standard proposed by the Interlay team in May this year amid the hype surrounding the sudden emergence of the Ordinals protocol. The latter allows for the inscribing of digital content, such as art, onto the Bitcoin blockchain and uses the BRC-20 token standard.
BRC-21 is a standard that uses the BRC-20 format of representing assets on Bitcoin to trustlessly bridge tokens from other chains to Bitcoin, for example decentralized stablecoins like DAI that live on Ethereum, Zamyatin told Decrypt. On the Bitcoin side, the standard introduces mint and redeem operations that are verified by customized indexers.
He further explained that the mint and burn logic of the protocol, paired with the cryptographic verification of Bitcoin transactions, allows any ERC-20 token on Ethereum to be bridged to Bitcoin as a BRC-21 token in a fully trustless manner, without the need for any trusted oracles or custodians.
In addition to Rust and EVM smart contracts, the release of BOB's MVP also features Interlay's trustless Bitcoin bridge and an integrated Bitcoin light client that utilizes cryptographic verification of the Bitcoin main chain.
Zamyatin added that there is also some logic that is necessary on the connected chain, such as Ethereum, including "a smart contract to lock/unlock bridged assets and a BTC-Relaya Bitcoin light client implemented as a smart contract that tracks the BTC main chain and can verify BTC transactions."
According to Interlay, this functionality enables developers to establish trustless BTC, Ordinals, and BRC swaps, along with other Bitcoin primitives like hashrate markets.
The upcoming full-release timeline will incorporate compatibility with Ethereum, an innovative Bitcoin peg mechanism building upon Interlay's existing trustless BTC bridge, and Bitcoin rollup mechanisms.
We are working to have the mainnet live with launch partners, tooling and infrastructure before the Bitcoin halving. A public testnet for builders to start testing is scheduled for before Christmas this year, Zamyatin told Decrypt.
Efforts like Ordinals have raised the ire of some Bitcoin maximalists, who argue that as a tried-and-tested protocol that has been running for over a decade without any major security flaws, the Bitcoin blockchain should not be used for experiments because it could destabilize the network and erode public confidence in the worlds largest cryptocurrency. The Interlay co-founder, however, told Decrypt he firmly believes that we need to unlock more use cases for Bitcoin than just hodling.
If we do not provide people with tools to use Bitcoin for more than investment and remittance in a decentralized manner, we are basically pushing them to use centralized providers or less secure networks, Zamyatin said. Financial freedom means different things for different people and I think it is ignorant to claim that stacking sats and hodling are the sole purposes of Bitcoin.
According to him, Layer-2s are the most promising path to enable experimentation without major changes to Bitcoin, which should act as the most secure and decentralized settlement layer for applications and layers built around and on top of it.
The changes necessary to enable trustless Layer-2s need to be carefully evaluated and tested. I am not suggesting to rush an upgrade but an upgrade is definitely necessary if we want to see Bitcoin adopted globally, argued Zamyatin.
The Interlay co-founder went on to say that he is a Bitcoin maxi himself, having spent the last eight years working on Bitcoin.
I love what Bitcoin is and what it stands for," said Zamyatin, adding that he disagrees with "cult-like maximalism and tribalism."
"I do not believe that Bitcoin is better than everything else at everything," he added. "Ignorance is the death of innovation.
Drawing parallels, he noted that once-dominant corporate giants like IBM, Kodak, Yahoo, Nokia, and Xerox had failed to realize that innovation is needed to survive and paid the ultimate price.
I and many, many others do not want this to happen to Bitcoin," said Zamyatin. "One could say Bitcoin is in the early stages of a renaissance."
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