Category Archives: Smart Contracts
Smart Contracts in Peril? EU’s Data Act Vote Stirs Controversy in the Web3 World – CryptoGlobe
New data controls may require smart contracts to include kill switches, sparking debate among experts and the Web3 community.
According to a report by CoinDesk, in a recent development, the European Parliament has given the green light to new data regulations that could potentially necessitate the incorporation of kill switches in smart contracts to halt or reset activity. The 2022 EU bill, known as the Data Act, aims to provide individuals with greater authority over data produced by smart devices. However, the legislation has drawn criticism from the Web3 community. This past Tuesday (March 14), the European Parliament voted on the Data Act, with 500 members in favor, 23 opposed, and 110 abstaining.
During the discussion, Pilar del Castillo Vera, the leading legislator on the bill, emphasized that the updated regulations will benefit both consumers and businesses by granting them control over the usage of data generated by connected devices. Yet, the proposed provisions in the bill have alarmed many within the Web3 ecosystem.
The redrafted bill by del Castillo Vera stipulates that smart contracts must be equipped with access controls and safeguards for trade secrets. Moreover, they would need to possess features allowing termination or resetting. Experts are concerned that such measures might compromise the core function of smart contracts.
The proposed legislation has faced opposition as well. Thibault Schrepel, a blockchain law specialist and associate professor at VU Amsterdam University, expressed his reservations in a tweet before the vote. Schrepel argued that the current draft of Article 30 goes to extremes in addressing the challenges posed by immutability, thereby putting smart contracts at risk in an unpredictable manner.
Schrepel also noted that the legal language in the bill is ambiguous concerning who would be responsible for activating a kill switch on a smart contract. He believes this creates a conflict with the fundamental concept that automated programs should be unalterable by any party.
Featured Image viaPixabay
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Smart Contracts in Peril? EU's Data Act Vote Stirs Controversy in the Web3 World - CryptoGlobe
Europe introduces smart contract kill switch what it means for DeFi systems – AMBCrypto News
European regulators are turning up the heat on crypto and blockchain regulation just like their American counterparts. The recently passed European Parliament Act has a section that seeks to implement more control over smart contracts.
Article 30 of the European Parliament Act touched on regulatory guidelines regarding smart contracts. The segment required parties offering smart contracts to offer robust controls that can prevent third-party manipulation or functional errors. While this segment seems well and good, it is the second part that might be of contention.
Section B of article 30 requires smart contract providers to incorporate control mechanisms for terminating transaction execution. In other words, the mechanism will facilitate some level of control to enable smart contract interruption or stoppage. Such features can act as a double-edged sword. For example, they may offer a third-party level of control through which regulators can dictate or oversee usage.
Section B is aimed at adding an extra layer of security, especially against exploits. This focus may offer some contradictions to what DeFi is supposed to be. Smart contracts are supposed to provide autonomy in transactions, thus eliminating third parties. This means developers have to consider factors that prevent exploits.
Allowing third-party control negates the entire idea of self-executing smart contracts. Article 30 may effectively give the European government leeway to shut down DeFi. As such, the stipulation triggered new concerns in the DeFi community.
As noted earlier, U.S regulators kick started a war against cryptocurrencies in February by ordering banks to cease crypto dealings. This newly approved bill may underscore the next wave of the war against crypto. This time, the war is headed directly to the technology that underpins the crypto industry.
It is still anyones guess whether these efforts will hurt the market. That may not necessarily be the outcome because of jurisdictions. It will be difficult for governments to execute such mandates on decentralized technologies and even harder to shut down such technologies. The FUD associated with such developments is the most immediate danger. But at this point, the market has already endured heavy hits and this new attempt might thus not have much of an impact.
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Europe introduces smart contract kill switch what it means for DeFi systems - AMBCrypto News
Euro Parliament approves Data Act that requires kill switches on smart contracts – Cointelegraph
The European Parliament passed the Data Act on March 14. The comprehensive bill was intended to boost innovation by removing barriers obstructing access to industrial data. Among its provisions is an article that would require smart contracts to be alterable.
The legislation established rules for fairly sharing data generated by connected products or related services, such as the Internet of Things and industrial machines. Eighty percent of industrial data generated is never used, the European Parliament noted in a statement, and this act would encourage greater use of those resources to train algorithms and lower prices for device repairs.
The act contains provisions to protect trade secrets and avoid unlawful data transfers, and it set requirements for the smart contracts of parties offering sharable data, including safe termination and interruption:
The act also granted smart contracts equal protection when compared with other forms of contract.
Experts identified a number of issues with the legislation. OpenZeppelin head of solutions architecture Michael Lewellen commented in a statement provided to Cointelegraph:
Related:FTX proves MiCA should be passed fast, officials tell European Parliament committee
Professor Thibault Schrepel of the Vrije Universiteit Amsterdam said in a tweet that the act endangers smart contracts to an extent that no one can predict, and pointed out sources of legal uncertainty in the act. In particular, he found that it did not specify who could stop or interrupt a smart contract.
The bill was passed by a margin of 500-23, with 110 abstentions. Parliament members will now negotiate the final form of the law with the European Council and individual member countries of the European Union.
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Euro Parliament approves Data Act that requires kill switches on smart contracts - Cointelegraph
EU Data Act requires smart contracts to have kill switch, not be … – Ledger Insights
Today the EU voted to pass theData Act, which has a single clause directly addressing blockchain smart contracts. Many in the crypto community object to the requirement for a kill switch in smart contract code to stop the smart contract from functioning, mainly if theres a problem. This impacts immutability. Oddly, there isnt massive pushback against the other key requirement for access control mechanisms which goes against the permissionless nature of public blockchains.
However, the core of the Act is primarily targeted at the Internet of Things and data sharing for industrial purposes. The text was passed with 500 votes approving it and 23 against it. For the legislation to be finalized, it has to go through Europes cumbersome trilogue negotiations between Parliament, the Commission and the European Council that represents the individual states. So theres still time for amendments.
Professor Thibault Schrepel, Co-Director of the Amsterdam Law & Technology Institute at VU Amsterdam, noted that the smart contract clause doesnt define smart contracts for data sharing. If this is cleared up to apply for example to machine to machine (M2M) data sharing, then some of the other aspects of the clause might be less concerning.
He notes onTwitterthat a key issue is who should have control over a smart contract kill switch. It could be the smart contract creator, some public authorities, or the courts. Our take is that, in practice, it makes sense to be the creator because the whole point is to be able to act in an emergency. This would have the side effect of making it hard to argue that the creator doesnt control the smart contract, something protocol creators prefer not to have to argue they are decentralized. However, if the scope is M2M data sharing, control might not be as contentious. On the other hand, if it applied to DeFi, it could raise additional concerns.
Smart contractsandsmart legal contractsare not necessarily one and the same, but the clause makes them equivalent. The legislation limits the scope stating that the smart contracts are in the context of an agreement to make data available. So it doesnt necessarily imply that all smart contracts are smart legal contracts.
Essential requirements regarding smart contracts for data sharing
The party offering smart contracts in the context of an agreement to make data available shall comply with the following essential requirements:
(a) robustness and access control: ensure that the smart contract has been designed to offer rigorous access control mechanisms and a very high degree of robustness to avoid functional errors and to withstand manipulation by third parties;
(b) safe termination and interruption: ensure that a mechanism exists to terminate the continued execution of transactions: the smart contract shall include internal functions which can reset or instruct the contract to stop or interrupt the operation to avoid future (accidental) executions; in this regard, the conditions under which a smart contract could be reset or instructed to stop or interrupted, should be clearly and transparently defined. Especially, it should be assessed under which conditions non-consensual termination or interruption should be permissible;
(ba) equivalence: a smart contract shall afford the same level of protection and legal certainty as any other contracts generated through different means.
(bb) protection of confidentiality of trade secrets: ensure that a smart contract has been designed to ensure the confidentiality of trade secrets, in accordance with this Regulation.
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EU Data Act requires smart contracts to have kill switch, not be ... - Ledger Insights
Here’s why blockchain is the future of the telecoms industry – Crypto Reporter
The telecommunications industry has changed dramatically in recent years, with the proliferation of new technologies such as 5G, IoT, and cloud computing. These developments have enabled telecom operators to offer new services and products that were previously impossible or impractical.
However, these advancements also bring new challenges such as data privacy and security concerns, and the need for more efficient and transparent processes. This is where blockchain comes into the equation and offers a potential solution to help address some of the telecoms industrys most pressing issues, namely through distributed networks, smart contracts and non-fungible tokens.
Distributed networks for IoT device connectivity
As of 2021, its estimated that there are over 35 billion IoT devices worldwide, and this number is projected to reach 75 billion by 2025, according to a report by Statista. This growth is being driven by a variety of factors, including the increasing availability of low-cost sensors and connectivity, the rise of cloud computing, and the growing demand for automation and data-driven decision making in various industries.
However, there are three key problems with current IoT networks: security issues, centralisation, and a lack of standardisation and interoperability, leading to fragmentation in the IoT ecosystem. One solution is to decentralise the network and allow for peer-to-peer communication through the individual devices as a distributed network.
Distributed networks, where devices are connected to each other in a peer-to-peer manner, provides a decentralised infrastructure for devices to communicate with each other and with the cloud. This enables greater resilience than centralised networks, as there is no single point of failure that can bring down the entire network. By leveraging the power of distributed networks, IoT devices can be more secure and efficient.
Smart-contracts for digital identity verification
The current process of digital identity verification suffers from several issues, including: cost, complexity, vulnerability to data breaches and hacking attacks and privacy issues with having to disclose sensitive personal information.
Smart contracts can be used to provide a secure, decentralised, and transparent way of verifying identity information. Users would submit their identity information to the smart contract, which gets stored on a blockchain. The smart contract would then use various verification methods such as biometric data, government-issued IDs, and social media profiles.
Following verification, the smart contract would generate a digital identity certificate that can be stored on the blockchain. This certificate can be presented as proof of identity and service providers can use the unique identifier to authenticate it, without having to collect and store any sensitive personal information.
Smart contracts can also provide additional security and privacy features, such as MFA and encryption, to ensure only authorised parties can access user information. By eliminating the need for intermediaries like verification services or regulators, smart contracts can also reduce costs.
Overall, smart contracts offer a more secure, decentralised, and transparent way of verifying identity information, while also enhancing user privacy and control over their personal information and negating the need for businesses to collect and store customers private data.
A decentralised marketplace of digital telecommunications
Since 2019 the deployment of 5G networks within the UK has been progressing, with EE becoming the first network provider to reach the 50% coverage mark in 2022. However, this progress to achieving ubiquitous 5G connectivity has been slower than originally anticipated.
The key obstacle is high infrastructure costs associated with installing the assets that house the network equipment onto the streets. To cut costs, many providers have been installing their network equipment on publicly owned street assets such as street lamps, bus shelters, traffic lights, CCTV poles that are managed and controlled by various public bodies.
However, there are a number of challenges with this approach: poor visibility of assets, a lack of accurate data to understand suitability and ownership, and a lack of standardised commercial processes for procurement of the assets
Through digitising these assets, we can allow infrastructure providers to gain access and build networks faster. Enabling the exchange of telecom assets on a decentralised platform can help the market become more efficient as buyers and sellers can directly connect with each other, cutting out intermediaries and reducing transaction costs. This can result in increased access to telecoms assets for smaller players, creating more opportunities for innovation and competition.
Non-Fungible Tokens (NFTs) to digitise assets
NFTs can be used to provide a unique identification and ownership record for digital assets traded on a decentralised marketplace. This can provide greater transparency and authenticity, as buyers and sellers can verify the ownership and history of the assets, enabling automated transactions and smart contracts for a seamless exchange of digital assets.
Each public asset can be assigned its own NFT, which is designated to its owner and will be transferable to buyers according to the terms of trade that are set, e.g. renting out a street lightning post for 12 months to a network provider at 50 per month.
This innovative solution not only makes the process of renting public assets frictionless for network providers, but enables local authorities an opportunity to utilise their assets to open up new incremental revenue streams and lower their total cost of ownership.
In conclusion, the telecoms industry can greatly benefit from the adoption of blockchain technology, as it offers new opportunities for improved security, increased efficiency, and enhanced transparency. By implementing blockchain-based solutions, the industry can unlock new levels of innovation and growth, creating new revenue streams and improving services for consumers. As the technology continues to evolve and mature, we can expect to see even more use cases emerge, driving further advancements and adoption in the telecoms industry and beyond.
Alexander Cooper is the Project Delivery Lead at Weaver Labs
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Here's why blockchain is the future of the telecoms industry - Crypto Reporter
5 Must-Have Blockchain Developer Skills – Blockchain Council
Blockchain technology is revolutionizing the way we think about data security and transparency, and as a result, the demand for skilled Blockchain developers is on the rise. However, with such a wide range of technologies and tools available in the Blockchain space, it can be challenging to know where to focus your efforts as a developer.
Thats why weve put together this guide to help you understand the essential skills you need to succeed in this exciting field. In this article, well dive into the five must-have skills that every Blockchain developer should possess, providing you with the knowledge and insight you need to thrive in this rapidly evolving industry. So whether youre just starting or looking to enhance your existing skills, lets explore what it takes to become a successful Blockchain developer.
Blockchain technology is a revolutionary concept that has the potential to transform many industries. A Blockchain is essentially a digital ledger that records transactions in a secure and transparent manner. Blockchain technology has been used in various applications, from cryptocurrencies to supply chain management, and the demand for Blockchain developers is only increasing.
A Blockchain developer is a professional who is responsible for creating and implementing Blockchain solutions. These solutions can be used for a variety of purposes, such as developing decentralized applications, building secure databases, or creating new cryptocurrencies. In essence, a Blockchain developer is an expert in Blockchain technology who has a deep understanding of the underlying principles and technologies that power it.
So, why should you become a Blockchain developer? Here are some compelling reasons:
The demand for Blockchain developers has increased by leaps and bounds over the past year. Companies are actively seeking skilled Blockchain developers who can create and implement Blockchain-based solutions. As more and more industries adopt Blockchain technology, the demand for Blockchain developers will only continue to grow.
Due to the high demand for Blockchain developers, salaries in the field are quite competitive. The average salary for a Blockchain developer in the United States is over $100,000 per year. This figure can vary based on experience, location, and company, but it is clear that Blockchain developers can earn a lucrative income.Opportunity to Work on Innovative Projects
As a Blockchain developer, you will have the opportunity to work on innovative projects that have the potential to change the world. Blockchain technology has the ability to disrupt many industries, including finance, healthcare, and supply chain management. By working as a Blockchain developer, you will be at the forefront of this technological revolution and have the chance to create solutions that can have a real impact on peoples lives.
Blockchain technology is constantly evolving, and as a Blockchain developer, you will have the opportunity to learn and grow with it. By staying up to date with the latest developments in Blockchain technology, you can ensure that your skills remain relevant and in demand. Additionally, there are many online courses and resources available that can help you expand your knowledge and skill set.
Blockchain development offers a diverse range of career paths. As a Blockchain developer, you can choose to work for a Blockchain startup, a large corporation, or even start your own business.
Additionally, there are many different roles within the Blockchain industry, including Blockchain architect, smart contract developer, and Blockchain consultant. With so many options available, you can find a career path that aligns with your skills, interests, and goals.
To be a Blockchain developer, one must have a deep understanding of Blockchain technology. Without a proper understanding of how Blockchain works, it is impossible to develop Blockchain applications. Blockchain technology is a complex technology that requires a strong foundation in computer science, cryptography, and distributed systems. In order to be a successful Blockchain developer, one must have a thorough understanding of these concepts.
Developers must know how the Blockchain works, including its protocols, network architecture, data structures, and cryptography. They must also be familiar with smart contracts, which are self-executing contracts that are stored on the Blockchain. Developers must understand how to write secure code and ensure that their applications are resistant to attacks. This requires a deep understanding of cryptography and the various security mechanisms used in Blockchain technology.
Security is a critical aspect of Blockchain technology, and as a Blockchain developer, its essential to have a strong understanding of security and cryptography. This includes knowledge of cryptographic hash functions, digital signatures, and encryption techniques. A good Blockchain developer should also be able to identify and mitigate security risks and vulnerabilities in Blockchain-based applications.
They must also be familiar with various security standards and protocols, including SSL/TLS, OAuth, and OpenID. As a Blockchain developer, it is also important to understand the potential security vulnerabilities of Blockchain applications. Some of the most common security vulnerabilities in Blockchain applications include smart contract bugs, denial-of-service attacks, and distributed denial-of-service attacks. Understanding these vulnerabilities and how to prevent them is crucial for building secure Blockchain applications.
Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. To be a successful Blockchain developer, its essential to have a strong understanding of smart contracts. This includes knowledge of programming languages such as Solidity, which is used to write smart contracts on the Ethereum platform, and the ability to write and test smart contracts to ensure they are secure and free of bugs.
Smart contracts are at the heart of decentralized applications (dApps). These applications use the Blockchain to provide a transparent and secure platform for transactions without the need for a centralized authority. dApps are becoming increasingly popular as more and more people become aware of the benefits of Blockchain technology. As a Blockchain developer, its essential to understand how smart contracts work and how they are used in dApps.
One of the most important skills for a Blockchain developer is proficiency in programming languages. Blockchain technology relies heavily on programming languages. Blockchain developers are responsible for creating decentralized applications that run on Blockchain networks. These applications are built using smart contracts, which are self-executing computer programs that automate the execution of contracts between parties. To create these smart contracts, a Blockchain developer must have a strong understanding of programming languages like Solidity, Java, Python, C++, and JavaScript.
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5 Must-Have Blockchain Developer Skills - Blockchain Council
Revolutionary DeFi Protocol IPOR to be listed on Bitget on Mar 22nd … – Yahoo Finance
Bitget
Bitget to bridge the gap between DeFi and TradFi with IPOR practical solution for traditional finance players
Victoria, Seychelles, March 20, 2023 (GLOBE NEWSWIRE) -- Bitget, the largest crypto copy trading platform, has announced the upcoming listing of IPOR in its Innovation Zone of the spot market. The deposit services for digital assets will be available from 7 AM on March 22nd, 2023 (UTC), with trading set to commence at 12 PM (UTC) on the same day.
IPOR Protocol is a decentralized interest rate derivative exchange that utilizes the Inter Protocol Over-block Rate (IPOR) index. It offers non-custodian on-chain interest rate swaps through the IPOR Index, IPOR AMM, liquidity pools, and Asset Management smart contracts. The protocol aims to bridge the gap between DeFi and TradFi by providing risk management tools, including interest rate derivatives and indices, for the emerging DeFi credit markets. This enhances stability and makes fixed-income investments more appealing to traditional finance players.
IPOR team's vast experience, with members who have been in the crypto industry since 2011, gives it important advantages. It includes three PhDs, quants with over 20 years of experience in fixed income, enterprise software developers with over 15 years of experience, and advisors for Cardano and founder of 1inch. The interest rate derivative market in TradFi is enormous, between 450 and 600 trillion notional, yet untapped in DeFi. The IPOR protocol ranks as the Top 5 derivative platform by TVL, with over $40 million, and the Top 2 on Ethereum.
Gracy Chen, Managing Director of Bitget, says: "As a leading crypto exchange in futures trading and copy trading, expanding the product offerings is our major strategy this year. Even in the bear market, we are happy to support more promising projects in our fast-growing spot trading market, and we believe that IPOR's unique features will attract both DeFi and TradFi players, bringing DeFi to a wider audience."
According to Coingecko, Bitget's 24h trading volume is around $845 million, ranking 10th among all spot exchanges. The platform now supports over 460 coins with 529 trading pairs.
About Bitget
Bitget, established in 2018, is the world's leading cryptocurrency exchange with futures trading and copy trading services as its key features. Serving over 8 million users in more than 100 countries and regions, the exchange is committed to helping users trade smarter by providing a secure, one-stop trading solution. It also inspires individuals to embrace crypto through collaborations with credible partners, including legendary Argentinian footballer Lionel Messi, the leading Italian football team Juventus, and official eSports events organizer PGL. According to Coingecko, Bitget is currently a top 5 futures trading platform and a top 10 spot trading platform.For more information, visit: Website | Twitter | Telegram | LinkedIn | Discord
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Revolutionary DeFi Protocol IPOR to be listed on Bitget on Mar 22nd ... - Yahoo Finance
Boba Network Announces Integration with NOWPayments – Cryptonews
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Palo Alto, CA, 20th March, 2023, Chainwire
Boba Network, the only multichain layer-2 blockchain scaling solution and the only smart contract platform that enables Web3-Web2 interoperability, is pleased to announce its integration with NOWPayments, the non-custodial crypto payment gateway created by the team behind ChangeNOW. As part of the integration, $BOBA will now be available as a payment, donation, and payout option for all businesses that use NOWPayments.
NOWPayments, a prominent cryptocurrency payments provider, provides a range of tools to assist you in getting started with accepting $BOBA payments. Here are some of the available tools:
"We're excited to partner with NOWPayments and offer our community another way to use BOBA," said a core contributor of Boba Network. "With this integration, merchants can now benefit from accepting BOBA, including its staking feature and access to our massive community."
NOWPayments is part of the NOW Solutions ecosystem, which allows businesses to integrate crypto and benefit from it. With BOBA now available on NOWPayments, it allows businesses to accept payments and/or donations in 160+ cryptocurrencies, with auto-coin conversion available, and fiat conversion possible.
"We're thrilled to add BOBA to our payment options and continue spreading the adoption of crypto payments," said Xena Kash, CEO of NOWPayments. "The Boba Network's ecosystem is rich with use cases, and we're looking forward to giving BOBA even more use cases along the way."
Boba Network is an optimistic-based multichain layer-2 scaling solution that aims to unlock the potential of rollup technology and enable more flexible blockchain communication. The protocol is fully compatible with EVM-based tools and has already deployed multichain support for Avalanche, BNB, Moonbeam and Fantom, supporting lightning-fast transactions and fees anywhere from 40-100X less than the respective layer-1. Boba Network is powered by Hybrid Compute technology that brings the power of Web2 on-chain, with smarter smart contracts that allow developers to leverage off-chain compute and real-world data to deliver enriched experiences for decentralized applications.
NOW Solutions is an ecosystem of enterprise solutions that allow businesses to integrate crypto and benefit from it. NOWPayments and ChangeNOW are part of NOW Solutions, joined by other NOW projects, such as NOWCustody and NOWNodes
ChangeNOW is a non-custodial exchange platform with more than 5 years experience. It supports 800+ assets and 150K+ trading pairs powered by 10 CEX & DEX liquidity providers, and offers crypto solutions for businesses (APIs, Token migration, traffic monetisation, etc)
NOWPayments is a non-custodial crypto payment gateway created by the team behind ChangeNOW. It lets you accept payments in 160+ cryptocurrencies, with auto coin conversion available. Regardless of what crypto customers pay with, merchants can choose to accept the coins they prefer - NOWPayments converts them automatically. The platform offers a variety of tools.
For more information, please visit https://boba.network/ or https://nowpayments.io/
Contact
Mark Wien[emailprotected]
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Boba Network Announces Integration with NOWPayments - Cryptonews
Blockchain Could Soar Beyond 100,000 Transactions per Second With the Right Math – The Daily Hodl
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Some of the worlds most advanced distributed systems such as Halo 4, WhatsApp and LinkedIn arguably among global leaders in network design use a mathematical proof called the actor model.
Vast payment processing institutions like Visa and Mastercard use it too no doubt perking the ears up of every person who believes cryptocurrencies are a viable alternative to existing payment and remittance solutions.
Sharding is held as one of many holy grails in crypto because the division of a blockchain into several smaller networks aka shards unleashes the potential to holistically separate traffic, rather than dealing with vast volumes of transactions all at once in one place.
The actor model is irresistibly conducive to sharding in blockchain, with technical principles offering a natural fit to the goal of tremendous scalability.
Strictly speaking, the logic of this model does not break blockchain norms on its own but innovative engineering makes it entirely possible to scale to 100,000 TPS (transactions per second) using the underlying fundamentals.
These fundamentals provide a very modern model for distributed networks.
First-movers in tech often enjoy a significant advantage, and the same might prove true for engineers utilizing cleverly adapted mathematical proof for a massively scalable blockchain.
Why the actor model is so technically good
The actor model was first introduced by Carl Hewitt in 1973 and has since been successfully implemented, such as in the Akka library using the programming language Scala and the OTP (Open Telecom Platform) using Erlang.
If anything, this indicates a highly adaptable math proof.
We neither had the tools nor the conceptual vision to design modern DLT 40 years ago when Ericsson led the adoption of the actor model by deploying it as software on top of hardware routers.
Yet its entirely possible that this was the beginning of a quiet revolution ending with blockchain mass adoption, and finally, integration of the technology into our daily lives.
If this will be the case, its instructive to learn exactly how the actor model works. Even those without a solid mathematical or even computer science grounding can readily understand the unmistakable logic of applying it to blockchain.
The actor model states that an atom of computation is an actor applied to blockchain simply meaning, the user account.
For the purposes of explanation, we will refer to the actor as an account or in many cases, smart contract. Within each account is a unique ID or wallet address and data and message handlers to transmit this data.
The role of the account allows it to receive messages, change its state and change its behavior (code) as well as spawn (deploy) other accounts.
Accounts are the basic unit of computation responsible for communicating, and therefore are responsible for determining how to process transactions. Accounts further retain their own private state in complete isolation from other accounts in a huge boon to the security and stability of the network.
Perhaps the biggest headline advantage is in the phenomenal scalability of a blockchain utilizing the actor model with it making full use of the multifaceted nature of accounts.
Neatly solving the scaling problem
Envisioning 100,000 TPS is difficult while computing them in a stable and secure manner is a mammoth task. And an account in this model is limited to sending up to 255 messages to other smart contracts, which on the surface implies a TPS limit of just a couple hundred.
Clever engineering, however, can overcome this boundary and surge past the limit.
By employing a recursive pattern of sending messages from a singular account to itself essentially repeatedly applying the messaging process the limit exponentially increases to the high tens of thousands, if not greater.
A single external message to any given smart contract may spawn an enormous number of follow-on messages all containing token transfers, NFT transfers or any other type of transaction on blockchain.
Within the actor model, developers are able to design and implement smart contracts without relinquishing control over the communication, and indeed coordination, between nodes in a decentralized network.
What this could mean is a tremendous leap forward in the CeFi versus DeFi debate.
A current challenge in the space is finding a workable tradeoff between decentralized principles and actually making sure the technology fulfills its promise often achieved by accepting there will be a centralized aspect and therefore a focal potential point of failure.
Everything changes once the actor model is implemented. Each account has a unique address deterministically calculated as a hash (stateInit), where stateInit denotes its initial data and contract data. This is all packed into a special tree-like data structure called, TVM cell.
Imagine a newly created account sending its first message. The initial message or transaction begins a chain that can exponentially grow according to the demands of dataflow with the result of exponentially increasing capacity.
Like a finite rhizome, a single account can meet multiples of other accounts on the blockchain and send transactions between one another. All with the goal of creating a massive scalable network able to handle, for example, the biggest NFT (non-fungible token) drop in history while simultaneously dealing with significant capital and information flow in traditional industries.
A secure and decentralized network is possible
On-chain deployment is heavily used in production systems composed of different smart contracts that need to communicate with each other.
Any smart contract built upon the actor model logic on such a blockchain so it accepts an external or internal message can start the process of sending transactions.
A special deploy message may be sent by an account containing the code and initial data, thereby triggering the on-chain deployment of a new smart contract.
A vastly scalable blockchain must ensure newly deployed factory contracts are set up in a way that ensures there is total concordance when it comes to code.
Otherwise, sections of the blockchain are exposed to security risks, and in the worst case scenario, fall victim to malicious actors coding smart contracts to act in a way theyre not supposed to.
Utilizing the actor model simply means that when a user registers, the new account will have to send messages to a smart contract. Otherwise, their account will be unable to deploy and become active.
This works to bring new accounts into line with every other account on the blockchain, thereby greatly reducing the risk of attackers engineering smart contracts to behave in unintended ways.
A set of rules for accounts in how they act with one another therefore delivers the ability to process innumerable volumes of transactions while handling failures gracefully and without ever posing a risk to the network.
The actor model has existed for several decades, quietly powering some of the worlds top distributed networks.But when applied to blockchain, it provides a structure for efficient concurrent computation that the industry is sorely missing.
Yet this does not solve every problem consensus and ultimately raw computational power require equally innovative solutions.
Christopher Louis Tsu is the CTO of the Venom Foundation blockchain and a veteran entrepreneur with 37 years in tech, during which he founded four start-up companies in EDA, electronic design automation tools, digital TV, satellite comms and medical biotech.
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Blockchain Could Soar Beyond 100,000 Transactions per Second With the Right Math - The Daily Hodl
HashKey Group taps SlowMist for blockchain security and AML/CFT … – FinanceFeeds
The partnership will also see SlowMist leveraging its deep understanding of various fields, combined with the research and unique insights of HashKey Groups professional investment team, to study and explore the opportunities for these new technologies in development.
HashKey Group has partnered with SlowMist to enhance digital asset ecosystem security, anti-money laundering for digital assets, security technology research, and other technology fields, as part of its efforts todevelop comprehensive security standards and solutions that will safeguard HashKey Groups various business lines.
SlowMist offers a range of security solutions, including security audits, blockchain threat intelligence (BTI), defense deployment, as well as anti-money laundering (AML) and cryptocurrency tracking (MistTrack) services.
The firms SaaS security products include fake deposit vulnerability scanning, vulnerability monitoring (Vulpush), crypto hack archives (SlowMist Hacked), and smart contract firewall (FireWall.X).
SlowMist will provide HashKey Group with tailored security solutions from threat discovery to defense and help build HashKey Groups most critical security gate to deal with various security issues encountered in their development journey.
The blockchain security firm caters to hundreds of clients in both centralized and decentralized platforms, including some of the biggest names within the industry. The firm has audited more than 1,500 well-known smart contracts, covering Ethereum, Ethereum Virtual Machine (EVM)-based blockchains, EOS, Fabric, Solana, Klaytn, Aptos, and other public blockchains, having discovered hundreds of high-risk and medium-risk vulnerabilities.
In addition, SlowMist will provide HashKey Group with security consulting services to solve the needs of the entire security system and security lifecycle for target projects. They will also provide HashKey Group with comprehensive asset security solutions for online hot assets, cold assets, and DeFi assets, effectively helping HashKey Group improve the security and stability of their assets.
Besides blockchain security, SlowMist will also provide HashKey with an AML/CFT compliance solution with two key products:
The partnership will also see SlowMist leveraging its deep understanding of various fields, combined with the research and unique insights of HashKey Groups professional investment team, to study and explore the opportunities for these new technologies in development. This will consolidate SlowMists position as a leader in top digital asset financial service groups.
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HashKey Group taps SlowMist for blockchain security and AML/CFT ... - FinanceFeeds