uncle Fibonacci Follow Jun 1
· 11 min read
✔️ Rehearsal of the merger of Ethereum networks on the Ropsten testnet will last for several days The “dress rehearsal” for the merger of blockchains on the PoW and PoS algorithms of the Ethereum test network called Ropsten will last from June 2 to 8.This was announced by the developer Tim Beiko.
Ropsten is one of the oldest PoW testnets, the working conditions of which are close to real ones.The event will be a test of system performance before a full transition to Ethereum 2.0
A similar update is expected by other test networks — Goerli and Sepolia .After that, the focus of developers will shift to the main network.
Launched to merge with Ropsten, the Beacon Chain PoS network will have to go through a Bellatrix upgrade.
In the future, node operators will need to set new equipment parameters.
To reduce the risks of the transition, the Ethereum Foundation has increased the maximum reward of the bounty program to $250,000.
The developers called August the most likely date for the transition of Ethereum to the Proof-of-Stake consensus algorithm.
Previously, the Beacon Chain network of the Ethereum 2.0 platform underwent a reorganization to a depth of seven blocks.
✔️ Optimism airdropped their token The developers of Optimism distributed the native OP token among 232,000 users of the Ethereum L2 scaling solution.
Airdrop participants received 231,928,234 OP — 5.4% of the original offer.
In total, together with subsequent rounds, 19% of the emission of 4.29 billion tokens will be distributed among users.
The team has released a step by step video with a guide to getting the OP.
Token holders will be able to delegate their right to vote to a community member or take part in voting independently.Almost 30 Phase 0 proposals have already been formed.
In the near future, members of the chamber of the Optimism “collective” tokens will consider the distribution of incentives between projects that are already interacting with the solution.
If all proposals are approved, developers will receive a total of 36,600,000 OP (15% of the tokens in the management fund).
In the next phase 1, any projects that demonstrate a development plan using OP to stimulate growth will be able to participate.Among them, 85% of all tokens in the management fund will be distributed.
The community will also focus on solving project growth issues such as protocol upgrades and reserve management.Earlier, the listing of the Optimism token was announced by the OKX , LBank and MEXC trading platforms.
OP is expected to appear on Binance soon.Due to the high network activity, certain technical problems arose, which led to the transfer of the listing on the platform.
In May, the developers excluded 17,000 addresses from the distribution.
✔️ Celsius CEO: Bitcoin is ready for an eightfold increase The CEO of the cryptocompany Celsius believes that the market’s fall has been too long and the bullish trend awaits cryptocurrencies with an eightfold increase in bitcoin.
Alex Mashinsky, in an interview with Kitco News, said that the cryptocurrency markets will recover and even inflation will not be a long-term problem for them.Over the past few days, Wall Street, says Mashinsky, has shown good growth, while the cryptocurrency market continued to fall.
According to the businessman, the situation will soon change and, probably, a reversal into a bullish trend will begin on May 31:
“I think we’ll see watch over the weekend and next week.You can push the spring as hard as you want, but the harder you push, the more it bounces, and we missed the bounce here.”
The head of Celsius recalled that when a bullish trend sets in, Bitcoin always shows a significant increase:
“When bitcoin recovers, it usually goes up five to eight times where it was.Or even more.While the stock market will only grow by 30–50–70%.Thus, the bounce of cryptocurrencies is always stronger, forward to new higher highs and lows.”
Mashinsky noted that even large investment bankers are increasingly involved in cryptocurrency.Last week, strategists at JPMorgan Chase said Bitcoin had “significant upside potential,” which in turn helped change market sentiment.
“Even JPMorgan, which doesn’t usually talk about cryptocurrencies, published a report this week arguing that the panic may have been exaggerated and a bounce to $38,000 is expected from where we are today,” Mashinsky warned.
However, CoinShares analysts claim the opposite.
According to their data, the small capital gains that were recorded this week did not change the “bearish mood” in the cryptocurrency market.
✔️ The Basel Committee re-discussed the document on cryptocurrencies The legislator of global banking regulation standards plans to complete the consideration of crypto assets closer to the end of this year.
The Basel Committee on Banking Supervision published an update on the May 27 meeting.At the time of this meeting, there was talk of significant progress on a consultation paper on a “prudential approach to banking risk in relation to crypto assets”.
B last year, the vpervýe opublikoval consultacionny DOC, in which it proposed to introduce a strict capital-in-need for banks with access to cryptocurrencies, in addition to the implemented unifying structures for cryptocurrencies and issuing a recommendation on established loving gaps.
He received feedback from interested parties, on the basis of which the following consultations will be built.
It is planned to publish this document approximately at the end of this year, the official announcement says.
“Recent events have further emphasized the importance of having a global minimum prudential framework to mitigate the risks associated with crypto assets.”
The last weeks in the crypto-currency markets there has been a significant decline, and the UST algorithmic stablecoin has lost its peg.In the first edition of the consultation document, among other things, the requirements for credit and market risk for stabilization mechanisms in tokens were considered.
In addition to its plans in the field of cryptocurrencies, the body also considered the climate-related financial risks and vulnerabilities of the global banking system.
✔️ The first robot to sell NFT has released its own collection of tokens Tokens from the Baby Singularities collection are presented on the OpenSea trading platform.Their owners will have access to the AI of Sofia and the metaverse for training artificial intelligence.
Humanoid robot “Sofia” presented its own NFT-collection Baby Singularities.The robot also announced the Sophia’s Age of Singularities (SAOS) metaverse, which will be used to train artificial intelligence.
The Metaverse begins with a market based on non-fungible tokens.As a result, they will become a full-fledged environment and allow the integration of games into the metaverse.
The proceeds from this activity will go to the development of artificial intelligence “Sofia”.
In March last year, Sophia “sold” an NFT token linked to her pattern for $688,800.This is the first time in history that an artificially intelligent humanoid robot has raised money for the sale of a non-fungible token (NFT).Sofia created her drawing based on the work of Italian digital artist Andrea Bonacheto.
✔️ In the UK, proposed measures to protect against the collapse of stablecoins Her Majesty’s Treasury has put up for public comment a document introducing additional safeguards against the collapse of stablecoins.
The agency recommended delegating authority to the Bank of England to address a potential systemic disruption to stablecoin issuers, digital wallet providers and third-party payment processors.
“This will allow it [the Central Bank] to fulfill its statutory role in relation to financial stability,” the document says.
The Treasury stressed the importance of ensuring “effective application of the existing legal framework for risk management” in the event of a digital asset issuer going bankrupt.
The discussion of the document will last until August 2, after which it will be considered in parliament.
The authorities proposed the initiative after the collapse of the Terra ecosystem.
On May 8, the algorithmic stablecoin TerraUSD (UST) lost its peg to the US dollar.
On May 10, the quotes of the asset fell below $0.62.The fall continued on May 11, after which the LUNA cryptocurrency used to issue UST fell to $0.3.
The market reacted to the collapse of UST with a fall.On May 12, the price of bitcoin dropped to $26,700, which is comparable to the level of the end of 2020.On the same day, the USDT stablecoin briefly lost parity against the US dollar.
✔️ Experts told the consequences of the imminent transition of Ethereum to the Proof-of-Stake algorithm Changing the way tokens are mined entails the transformation of the entire ecosystem.
What are the possible effects of changing the protocol? Let’s figure it out….
In August 2022, it is planned to switch the Ethereum blockchain to the Proof-of-Stake (PoS) mining algorithm.This will mean the end of ETH mining through Proof-of-Work (PoW) mining.Under the new rules, the number of tokens owned by the user will be of key importance.
Ethereum has been using mining to maintain the security of the network and the production of coins since its inception in 2015, but the creators of the project have always planned to switch to another more secure protocol that will allow the implementation of new solutions and will consume less electricity.
In addition to reducing electricity consumption and increasing network bandwidth, the transition to a new algorithm entails many changes in the operation of the entire Ethereum ecosystem.
Reasons for switching to a new protocol In addition to a higher level of energy efficiency and scalability, PoS allows you to run more nodes, which will lead to greater decentralization, explained Roman Nekrasov, co-founder of the ENCRY Foundation.He stressed that this is only in theory, how it will be in practice is a moot point.
PoW networks have slow transaction output, added BitCluster investment director Thomas Galovich.He explained that the idea behind Ethereum’s transition from PoW to PoS was to increase the speed to host various decentralized applications (dAapp) and provide the necessary infrastructure for the advent of web 3.0.
Benefits of the old algorithm The main advantage of PoW over PoS is the stable operation of the network since 2013 and the reliability already proven by time, according to Ivan Sharov, director of the online store for mining equipment and computer components Hardvar.ru.
Roman Nekrasov added that PoW provides more opportunities to maintain decentralization compared to PoS, although in theory it should be the other way around.PoW is an investment in computing power that is not available to everyone, the threshold for entering coin mining is higher than that of PoS.
“In practice, PoS networks run the risk of becoming more centralized than PoW networks, because staking also requires a certain amount of network coins that a user can deposit in a staking smart contract.For example, for Ethereum it is 32 ETH,” the expert explained.
In addition, he added that PoW allows even a single miner to mine a block.The competition is more fair than in PoS, where the validator that has staked more coins has priority for writing and validating a block.
“In general, PoS is a relatively new concept, and it is possible to talk about its disadvantages and advantages only in theory,” Nekrasov concluded.
PoW has an advantage over PoS because of the electricity that is used to perform computing functions for the network, confirms Thomas Galovich.
“The more electricity the network consumes, the higher the hash rate and the network security.
Thus, possible attacks on the network are prevented and its security is increased, ”Galovich explained.
How will the transition affect blockchain security?
PoW on large and popular blockchains like bitcoin is better able to resist a 51% attack, as it would take an attacker or group of attackers to capture more than 51% of the network’s computing power to break the chain, says ENCRY Foundation co-founder.
“To carry out such an attack on the bitcoin network is very expensive and time-consuming (purchasing a huge amount of equipment), it is unrealistic to negotiate with a group of other miners, since everyone has their own goals and few people want to participate in such a scam,” Nekrasov noted.
In PoS networks, the complexity of the 51% attack is lower, which means that its feasibility is higher, according to the expert.He pointed out that it is enough for an attacker to accumulate a large number of coins, and although this will still be a costly attack, but with the availability of financial resources, it is easier to perform than in PoW networks.
“When Ethereum eventually transitions from its current algorithm to a new one, it will rely on validators rather than miners to validate transactions on the Ethereum blockchain through a consensus mechanism,” said BitCluster investment director.
New Ethereum network security risks in the PoS consensus mechanism are related to possible attacks on validators or abuse of the validator function, explains Galovic.
He gave the example that Lido DAO, which currently owns 33% of ETH on Beacon Chain, allows users to deposit any amount of ETH to earn staking rewards, virtually bypassing the requirement to have a full deposit of 32 ETH to run a verification node.
Lido employs 22 Ethereum node operators who handle the technical side of running the validator node software.
“However, the top 100 holders of LDO, the governance token for the Lido DAO, own 93.1% of the entire LDO supply, leading to a centralization of power within ETH validators, which Ethereum management has been trying to avoid from the very beginning,” the specialist noted.
Impact on blockchain users The transition of ether to PoS will lead to the fact that small miners, who are currently mining ether on video cards, will switch to another cryptocurrency, most likely Ethereum Classic, Nekrasov predicted.Confirmation and recording of blocks in Ethereum at the first stage after the transition will be handled by large Ethereum holders.
“I expect that at least in the first stage after the transition to PoS in the Ethereum blockchain, the level of centralization will increase,” the expert added.
We can definitely say that PoS will affect the entire crypto market, Ivan Sharov said.He is sure that this will primarily affect miners, they are at risk, since ETH mining on video cards is the most profitable.
“It is currently unknown what impact this transition will have on Ethereum blockchain users in the long term,” concluded BitCluster Investment Director Thomas Galovich.
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