Vitalik Buterin: EIP1559 Will Make Ether “Ultrasound Money,” Scaling is “Coming Very Soon” too

Ethereum co-founder isn’t concerned at all about the chain split due to the proposal. Also, a PoS chain is already here and running; it just doesn’t have sharding because the priority is currently the merge.

Ether is seeing some red today, much like the broad crypto market. Still, it is trading above $1,750, up nearly 140% YTD. However, the big thing is the upcoming upgrade, EIP 1559, that the market believes isn’t priced in yet.

The proposal is facing some pushback from miners, some of them even come together to attack the blockchain, but the market isn’t really concerned. This is because of the multi-billion decentralized finance (DeFi), especially the stablecoins, which collectively now surpass 56 billion in supply, built on the second largest network, as shared by Arthur of DeFianceCapital on “UpOnlyTV” recently.

Ethereum co-founder Vitalik Buterin isn’t concerned either, as he explained on The Tim Ferriss’ Show.

When asked by AngelList founder Naval Ravikant who is bullish on crypto and DeFi, if there’s a possibility that some miners and people will stay on Eth1 instead of Eth2, Buterin said, “the risks are much lower.”

Buterin attributed being very open about proof-of-stake and sharding from the first day as the big part of the reason. Not to mention, the market has gone through it already with Ethereum Classic (ETC). He said,

“Why stay on the chain where the core developers and lots of people are eagerly expecting a proof-of-stake change if you can just move on to a platform already that accepts your values? So I think that was one of the factors that did actually end up making the Eth2 transition a bit more secure.”

According to him, Ether is all about having more scalability which is going to deliver great environments for Ethereum users and everyone is roughly on board with the idea.

More Direct Connection Between Users & ETH’s Value

Ethereum Improvement Proposal 1559 was accepted a week back to be included in the London hard fork scheduled for July.

“It basically creates this more direct connection between people using the Ethereum blockchain and ETH having some value,” described Buterin.

He further explained that the proposal redesigns how the transaction fee market works, which means the majority of fees, instead of going to the miner or corporate who creates the block, would get burned. “It would just literally get deleted out of existence.”

“If demand to use Ethereum is high enough, then there would actually be more ETH being destroyed than is being created,” says Buterin adding, it would make Ether “ultrasound money” to Bitcoin’s sound money.

Before the London hard fork, however, the Ethereum Proof-of-Work (PoW) is undergoing a mainnet upgrade, called Berlin, on April 14, 2021.

A backward-incompatible fork will require updating the software to continue to follow the mainnet. As such, stakers are required to upgrade their Ethereum PoW nodes before April 14, 2021, and if you run the Pyrmont testnet, you must upgrade your Goerli nodes before March 17, 2021, shared developer Danny Ryan.

PoS is Already Here and Running Stable

While EIP-1559 would cement Ether’s economic value within the Ethereum platform, the big thing that would change the network and the market is eagerly awaiting is ETH 2.0, which will give the network 100 times improvement over the current processing.

While the Beacon Chain, Phase 0 has been launched with 3.2 million ETH deposited for staking, the full transition will take time. This multi-step approach is taken to “give proof-of-stake sometime to prove itself before the entire ecosystem is asked to upgrade over,” said Buterin.

Talking about the ETH 2, Buterin said, “there’s already a proof-of-stake chain. It does not yet have sharding, but the proof-of-stake system is running. The thing that has not yet happened is the event that we call the merge,” where the existing activity on Ethereum will be fully moved over from the proof-of-work chain to the proof-of-stake chain which would make PoW irrelevant.

The PoS not only exists but has been running stable ever since its launch, and “at some point fairly soon, we are going to actually go and merge all of the proof-of-work activity onto it,” he added.

As for sharding, Buterin said there are prototypes of parts of it, but they are prioritizing the merge rather than sharding because of rollups which still provide 100x factor scaling. Buterin said,

“So rollups are coming very soon, and we’re fully confident that by the time that we need any more scaling of that, sharding will have already been ready for a long time by then.”

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Author: AnTy

Norwegian Publicly-listed Oil Company Buys $58 Million Worth of Bitcoin

Aker has established a new unit called Seetee to invest throughout the Bitcoin ecosystem. Co-founder Kjell Inge Røk­ke calls it not investing in Bitcoin the “riskiest decision.”

Norway’s Aker ASA is establishing a new unit dedicated to investing throughout the Bitcoin ecosystem, announced the company on Monday.

The new unit called Seetee AS would have an initial capital of 500 million Norwegian crowns ($58.6 million). The company is planning to keep its liquid assets in BTC, the industrial holding company said.

Seetee has already made its first Bitcoin purchase of 1,170 BTC with a strategy to HODL.

“Aker’s de­ci­sion to en­ter Bit­coin through See­tee is the re­sult of a long and fun­da­men­tal dis­cus­sion about val­ue,” states the shareholder letter. It further calls, not investing in Bitcoin the “riskiest decision.” Aker co-founder Kjell Inge Røk­ke wrote,

“Bitcoin may still go to zero. But it can also become the core of a new monetary architecture. If so, one bitcoin may be worth mil­lions of dollars. The asym­me­try is in­ter­est­ing to a port­fo­lio.”

As of writing, Bitcoin is trading around $51,000.

Besides using Bitcoin as a treasury asset, the company will also build and in­vest in projects and companies in Bit­coin’s ecosystem.

The unit will also establish mining operations and integrate blockchain technology with Aker’s industrial operations. For this, the company would collaborate with Canada’s Blockstream. Aker ASA Chief Executive Oeyvind Eriksen said,

“These technologies have the potential to reduce frictions in our day to day lives, enhance the security of our digitally-driven economies, and unlock new business models for innovation.”

Aker, controlled by Norwegian billionaire investor Kjell Inge Roekke, derives most of its income from the oil and gas industry. And the company doesn’t see “a long-term problem related to Bit­coin’s electricity consumption.”

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Author: AnTy

Bitmain’s Co-Founder Jihan Wu Steps Down In Bid To Settle Longstanding Power Struggles

Bitmain’s Co-Founder Jihan Wu Steps Down In Bid To Settle Longstanding Power Struggles

The leadership disputes within Bitmain, the world’s biggest mining firm, have finally been resolved. One of Bitmain’s co-founder, Jihan Wu, is set to resign as the company’s CEO as part of the settlement. The settlement means that Micree Zhan will now regain control of the mining giant. Bitmain co-founder Jihan Wu said in a statement on Tuesday,

“I have resigned from the CEO and Chairman [positions at] Bitmain as of today, the disagreement between Micree and myself, the two co-founders of Bitmain, has been finally settled in an amicable and, more importantly, a constructive manner.”

To operationalize the settlement agreement and the leadership changes, Bitmain’s subsidiaries have embarked on filing legal materials to effect changes in their boards and legal representatives.

Zhan bought approximately half of the firm’s shares for about $600 million from a holding company known as Bitsource. Bitsource is believed to be a code name made up of the founding shareholders consisting of Jihan. According to the press statement, Zhan finished the takeover by obtaining a loan of $400,000 from Bitmain as well as $200 million from different fundraising activities outside the Bitsource group.

Following his resignation, Jihan is expected to become the head of Bitdeer, an offshoot of Bitmain with several mining farms in Norway and the US. Jihan will become Bitdeer’s chair while the CEO will be Matt Kong. The settlement agreement also states that Antpool will become an independent company and be in the hands of Micree.

Jihan also explained that the settlement would allow the streamlining of Bitmain’s business model, paving the way for the company to seek an initial public offering. In the past, Bitmain has fruitlessly tried to go public.

The agreement also notes that Bitmain will have a new board consisting of five members. Zhan is expected to appoint three, while Jihan will appoint two. Already, Jihan has appointed Jianchun Liu, Bitmain’s chief financial officer, and Xiang Zhu, a top designer in the company.

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Author: Joseph Kibe

Centra Tech Co-Founder Sentenced One-Year in Prison Over $25 Million ICO Scam

Robert Farkas, 34, the co-founder of the cryptocurrency firm Centra Tech was sentenced to a year in prison on Tuesday by US District Judge Lorna G. Schofield in Manhattan.

Farkas pleaded guilty to tricking investors of over $25 million in an investment scam that was promoted by the likes of Floyd Mayweather and musician DJ Khaled, who settled their own charges with the SEC for failing to disclose that they had been paid to promote the project.

The other two co-founders have also pleaded guilty to their roles in the scam.

The guilty parties solicited investors in 2018 to commit frauds to an initial coin offering (ICO) for its “Centra Tokens” by falsely claiming that they have developed a debit card that will allow the users to make purchases with digital currency at businesses accepting Mastercard and Visa, said prosecutors.

In other news, the Public Prosecutor’s Office of the Argentine city of Córdoba indicted 12 people in connection with the Onecoin Ponzi scheme last week.

One of the biggest scams in crypto history, this Bulgaria-based project netted about $4 billion.

The local police carried out multiple raids and arrested eight people over the years in different countries. Onecoin founder Ruja Ignatova, who was also indicated, is still at large.

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Author: AnTy

Ray Dalio Admits “Missing Something about Bitcoin,” says Would Love to be Corrected

The co-founder of the world’s largest hedge fund manager, Bridgewater Associates, might not be convinced that Bitcoin can be a currency. Still, he is also admitting that he might be missing something about the leading cryptocurrency.

“I might be missing something about Bitcoin, so I’d love to be corrected,” said Ray Dalio in a tweet on Tuesday.

This tweet came in response to someone’s comment on Dalio not practicing what he preaches. Dalio’s original tweet talked about practicing to “appreciate the art of thoughtful disagreement,” being critical to society and very relevant in getting the very right answers together.

“His opinion on BTC at the moment clearly reflects a lack of deep insight in the matter,” said one Twitter user.

After saying that he might be missing something about Bitcoin, he reiterated his view on why he has problems with BTC being an effective currency.

The issues are simple: “Bitcoin is not very good as a medium of exchange because you can buy much with it,” he said, adding because it is too volatile for most merchants to use but added, “correct me if I’m wrong.”

The billionaire investor further pointed out that it is this volatility that makes it “not very good as a store-hold of wealth” and also because “it has little correlation with the prices of what I need to buy so owning it doesn’t protect my buying power.”

And last but not least, he thinks, if Bitcoin “becomes successful enough to compete and be threatening enough to currencies that governments control, the governments will outlaw it and make it too dangerous to us.”

Last week, when Dalio talked about the government banning the open-source, peer-to-peer system, Twitter CEO Jack Dorsey has cut it down with a simple “No.”

Dalio just “can’t imagine” that central banks, businesses, multinational companies, or big institutional investors are using it. But again,

“If I’m wrong about these things I would love to be corrected.”

Given the kind of adoption Bitcoin has been seeing from the public companies and institutional investors in 2020, Dalio certainly needs to take a deep dive into Bitcoin to understand it better.

Meanwhile, BTC continues to climb higher and higher, reaching levels not seen since January 2018. Today, BTC/USD jumped to nearly $17,900.

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Author: AnTy

Origin Offers to Hire OUSD Hacker as a Security Consultant in Exchange for the Stolen $7M

Yet another DeFi hack this week.

Matthew Liu, the co-founder of Origin Protocol, confirmed an attack on the Origin Dollar (OUSD) vault.

“OUSD has been hacked, and there has been a loss of user funds. We are actively investigating the issue. We are committed to making things right,” wrote Liu in the official Medium post.

In the attack, the hacker got away with over $3.3 million worth of ETH and 249,822 DAI after having laundered a substantial amount through Tornado.Cash, wBTC, and renBTC.

The team is now asking exchanges to blacklist any transactions from the wallets identified as belonging to the attacker.

“The attack was a reentrancy bug in our contract.

Unfortunately, our contract was safe from reentrancy bugs unless one of our supported stablecoins was attacking us.”

He explained that the attack originated from a contract deployed at Nov-17–2020 at 12:40:56 AM +UTC, which involved a flash loan of 70,000 ETH borrowed from dYdX. It further involves the stablecoin swaps, the minting of 7,500,000 OUSD as intended.

“At this point, the attacker held a little over half of all OUSD in existence”

The attacker basically exploited a missing validation check in mint multiple, minting OUSD with multiple stablecoins, to pass in a fake “stablecoin” under their control, which then called “transferFrom” on by the vault, allowing the hacker to exploit the contract with a reentrancy attack in the middle of the mint.

image1

The attacker was able to create a rebase event inside the second mint after funds had moved to OUSD from the first mint but before the supply of OUSD increased. This created a massive rebase for everyone in the contract, including the attacker. As such, the attacker received their first large OUSD mint, more OUSD than the contract had assets.

The attacker was able to take extra OUSD after withdrawing and selling it on Uniswap and SushiSwap for USDT.

The Origin Protocol team continues to recover the funds and asked the users to stop providing liquidity on SushiSwap, remove their funds, and not indulge in buying or selling OUSD.

The team has also asked the hacker to do the right thing by returning the funds, now that they have “demonstrated your superior skills as a hacker, and we’d happily hire you as a security consultant.”

As a result, the stablecoin pegged to $1.00 has dropped over 85% in value to $0.15.

More than $40 million has been lost in the last month alone in DeFi hacks such as Value DeFi, Akropolis, Harvest Finance, and CheesBank.

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Author: AnTy

Bitmain Power Struggle: Truce is Over & Fight for Control Resumes; Bitcoin Miners Could Suffer

The struggle between the co-founder of bitcoin’s biggest miner manufacturer is not looking to end anytime soon. It hasn’t even been two weeks, and they are back at it.

The fight restarted when Bitmain co-founder Micree Zhan or Zhan Keutan attempted to redirect customer payments to a new bank account in a Wechat post at midnight. Dovey Wan, founding partner at Primitive Crypto tweeted,

“This marks the DEATH of Jihan in the Bitmain power struggle IMO: Bitmain just announced it will change the miner sales payment bank account & wiring info into a company Micree serving as legal representative. Micree now financially takes over Bitmain’s core business.”

It may not be a death blow to Jihan yet, but sure seems like a hard blow to the bitcoin miners who are awaiting their big orders.

The infighting between the co-founders could interrupt the product deliveries as it affects the shipments and supply chain. While some are reluctant to buy bulk orders, it is not stopping others from buying machines from Bitmain.

Last week, Core Scientific announced that the hedge fund Horizon Kinetics extended its partnership with the US-based blockchain hosting provider and upgraded its crypto service to Bitmain Antminer S19 and S19 Pro models.

Recently, Core Scientific purchased 17,000 of the latest generation crypto miners from Bitmain.

Source: Twitter

On Monday, Hive Blockchain technologies also announced that it had ordered 200 Bitmain Antminer S17e 60 terahash per second (TH/s) SHA 256 mining machines to scale up its mining power at its bitcoin mining operation in Quebec.

With the cost for the S17e machines approximately US$950 per unit, the purchase was just under US$0.2 million, and the company is anticipating delivery in July, but that’s to be seen. F2Pool noted,

“The slowdown in hashrate growth may continue, as many of the large hardware orders reported recently won’t deliver until late in the summer.”

So far, both the co-founders are claiming to be the company’s real CEO. While Zhan controls the Shenzhen headquarter and factory Wu has the bank accounts and support of the board.

The rivals did reach an agreement to resume deliveries less than two weeks ago. On June 23, the company even published an article to reassure its customers that they have resolved the issue only to delete it within a few hours.

It hasn’t been 24 hours to Zhan’s document with changed sales information, (including the bank account for payments, after-sale service website, and e-mail address) that another official Bitmain WeChat account associated with Wu revoked the document stating it contained false information.

In the new document also posted on the website, citing “abnormal conditions,” Zu said “criminals” are trying to impose Bitmain representations.

It looks like Wu is here to fight, and customers will also have to pay the price.

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Author: AnTy

Centra Tech Co-Founder Duped Investors for $25M via DJ Khaled & Floyd Mayweather Promoted ICO

Co-founder of the cryptocurrency firm Centra Tech admitted to conspiring to dupe investors into investing $25 million into the company by lying about an initial coin offering (ICO), the Justice Department said.

Robert Farkas, 33, and two other founders of Central Tech Inc., Sohrab Sharma, and Raymond Trapani were charged in 2018 with misleading investors by claiming to have developed a debit card, the “Centra Card,” that supposedly allowed users to make purchases using cryptocurrency at any business accepting Visa and Mastercard.

Before founding Centra Tech, the trio worked at a luxury car rental company in Florida called Miami Exotics, according to prosecutors.

They got celebrities including boxer Floyd Mayweather and music producer DJ Khaled to promote their ICO, who later settled with the U.S. Securities and Exchange Commission but didn’t admit or deny guilt in the settlement.

From July 30, 2017, through October 5, 2017, Farkas and other co-founders solicited investors to purchase unregistered securities in the form of digital tokens “CTR Tokens” issued by Centra Tech through an ICO.

The claims made by Farkas at that time were false including the purported Harvard-educated chief executive officer “Michael Edwards” who was a fictional person fabricated to dupe investors. Cetra Tech also didn’t have any partnership with Bancorp, Visa, or Mastercard and they neither have any money transmitter and other licenses in 38 states as claimed.

Farkas pleaded guilty on Tuesday in federal court in Manhattan of securities fraud conspiracy and wire fraud conspiracy, appearing by phone before the US Magistrate Judge James Cott.

He faces as much as a decade in prison but prosecutors agreed to seek a sentence of 70 to 87 months and a fine of as much as $250,000 under a plea agreement. Sharma and Trapani will go to trial in November.

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Author: AnTy

Reddit’s CoFounder Alexis Ohanian Is Convinced We Are in the Midst of ‘Crypto Spring’

  • Reddit’s co-founder Alexis Ohanian has predicted a crypto spring remarking the real-life application of Blockchain solutions.
  • He has attributed this to the technological prowess harnessed by the experts. Reddit is in the midst of beta testing its Community Points system to incentivize content creators on the platform.

Following recent cutting edge technological innovations Reddit’s co-founder, Alexis Ohanian has highlighted that the current digital fintech sphere is set for a crypto spring.

Despite insisting that he was keen on the technological advancements rather than the pricing, he mentioned BTC almost breaking the $10,000 ceiling. Further denoting that he wasn’t in a position to predict the pricing.

These comments were made to a media outlet in regard to the real-life solutions by Blockchain brought about by the current crop of technically superior experts.

“…And that to me is the most interesting part… We’re seeing really top-tier talent building on the infrastructure”

He also disclosed that he has a percentage of his wealth locked up in crypto and was, so far, impressed, hoping the sphere would not change much. He is convinced that this is a worthy gamble evidenced by the increased number of Wall Street bigshots acquiring Bitcoin.

“It’s interesting to see OGs of Wall Street now getting into crypto and buying bitcoin. It’s increasingly showing that it’s here to stay”

Reddit ‘Community Points’ Initiative.

Reddit is well on course into trying out an Ethereum based solution on their platform for incentivizing content creators. The tokens dubbed MOONS and BRICKS are to be leveraged by Cryptocurrencies and Fortnite users respectively to earn rewards based on their contribution to Reddit.

The two communities boast of a combined membership of over 2.3 million members. This is a cog in the larger Reddit initiative of community points.

The beta tests will run till the summer of 2020. The two tokens can be claimed in a new Vault feature on Reddit’s platform. The vault will also enable the users to view their points while creating new Ethereum wallets where the ERC-20 Tokens can be securely stored.

“After the feature leaves beta, Community Points will be migrated to the Ethereum mainnet. Point balances will be carried over (though will need to be reclaimed).”

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Author: Lujan Odera

Tron Is Getting Ready for 4.0 While Ethereum 2.0 Is Struggling for A Launch Date

Tron founder and CEO Justin Sun is yet again challenging his nemesis Vitalik Buterin co-founder of Ethereum with the latest announcement.

On May 23, Sun took to Twitter to write three magical words that got both sides to start dissing each other. These three words involved nothing more than “Tron 4.0 is coming.”

Although no details are shared, the fact that Tron is on its way to 4.0 version while Ethereum hasn’t even released 2.0, whose launch date has been delayed numerous times, has the community congratulating Sun.

Start of the Alts rise

Some are ecstatic about this development while others are calling for a pump.

The 16th largest cryptocurrency by market cap is currently trading at $0.150, up 3.44%. So far in 2020, TRX reported gains of just over 11% but is still down 95% from its all-time high.

Meanwhile, the second-largest cryptocurrency is trading at $206, up 2.22%. Down 87% from its peak, Ether has recorded over 58% gains YTD.

Eth 2.0 testnet gaining support

There is also a group that is not feeling Sun’s latest announcement.

“When you try competing with ETH 2.0, so you invent some bogus update for your shitcoin,” wrote Crypto Whale.

Eth 2.0 is still struggling with its launch date which was already rescheduled, after many times for June 2020 but this again is “carefully” optimistic.

This delay involves fixing the bugs, multi-client paradigm, and management problems among other issues.

However, the Ethereum 2.0 testnet Topaz run by Prysmatic Labs is making a lot of progress. Nearly 30,000 validators are now staking over a million ETH, worth more than $200 million.

Although Prysmatic Labs remains a major contributor to the project, controlling 47% of the network, this domination is slowly decreasing, already down from 53% from the beginning of May. Crypto exchanges like OKEx are also becoming validators to stake Eth and keep the testnet running.

Eth 2.0 is a complex upgrade and has been in the works for many years now. This upgrade will make the blockchain more scalable, essential for the network as it is running almost 100% at capacity. The transition from PoW to PoS will also allow users to stake their funds, the first milestone of this phase.

Growing Networks

Amidst the increasing interest in Eth 2.0 testnet, the number of addresses holding more than 100 coins have reached an all-time high of 47,722 on May 21.

Also, the unique Ether addresses are close to reaching 100 million, currently at 98.25 million addresses, as per Etherscan.

Meanwhile, the total number of accounts on the Tron network has surpassed 5.9 million, as per Tronscan. The number of Dapps on the network has also climbed to 763.

“The TRON ecosystem is growing at a steady pace, we welcome more developers and users to join our community,” said Sun about the ongoing developments.

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Author: AnTy