Bitcoin Overcomes Technical Hurdle; Ethereum Prints 7 Consecutive Green Monthly Candles

Before moving into the weekend, Bitcoin started seeing traction and made its way past $58,500.

As of writing, we are still keeping around $57k on the back of very low funding rates. The highest Bitcoin funding rate is currently 0.0376% on Binance despite the price of Bitcoin increasing by about 11.5% to its highest level since mid-April.

Low funding rate has been the case ever since April 17, when over a million traders were liquidated for $10.1 billion. The funding even further minimized after another $4 billion were liquidated on April 22nd.

The same has been the case for ETH funding rates which are the highest at 0.056% on OKEx, while the price continues to hit a new all-time high — up 44% in the last 8 days to climb to $2,955.07 today and 0.052 BTC on Friday.

With seven straight green months in a row, Ether had its largest-ever monthly close. ETH 0.19% Ethereum / USD ETHUSD $ 2,951.18
$5.610.19%
Volume 28.03 b Change $5.61 Open $2,951.18 Circulating 115.71 m Market Cap 341.49 b
11 h Bitcoin Overcomes Technical Hurdle; Ethereum Prints 7 Consecutive Green Monthly Candles 1 d Binance Smart Chain (BSC) TVL Reaches $45 Billion, Catching Up Fast to Ethereum 2 d “Institutional Money is Moving Toward Ethereum,” says Guggenheim’s Scott Minerd

With funding remaining flat, it means the rally is being led by spot buying, which makes it more sustainable and less prone to get wiped out by a brutal liquidation.

Open interest on Bitcoin futures also has yet to recover as it is currently at $19.8 billion, down from $27.68 billion on April 13. OI on Ethereum futures meanwhile continues to increase, perched on a record $8.5 billion, up from $2 billion at the beginning of this year.

Amidst all the positive action, hedge funds on CME that have been record short on Bitcoin since late last year to earn all the yield have also decreased their short exposure. Overall, the net short position has fallen to early March level.

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The latest price action has helped Bitcoin surpass the technical hurdle of its 50-day average price. According to traders, Bitcoin’s move above $57,000 is a bullish sign for further continuation, but it needs to be seen if it will be able to maintain this level.

Trader SmartContracter sees the current momentum to take bitcoin to $74,000.

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Interest in both Bitcoin and Ethereum continues to grow, especially the second-largest cryptocurrency, which has its big upgrade, London hard fork, with EIP 1559 coming in July. As we reported, Rothschild bought the shares of Grayscale Ethereum Trust for the first time in Q1, and Guggenheim’s CIO shared that money is also flowing into ETH and other credible cryptos.

Assets in Bitcoin products, including ETFs and ETPs, meanwhile have reached a record high of $9 billion at the end of the first quarter, as per ETFGI.

“If you make an investment today or you make an investment in early December like we did, you have to expect multiple 20% to 30% pullbacks in the bull-market phase,” Troy Gayeski of Skybridge Capital said this week on Bloomberg. “But that being said, I mean, the combination of extraordinary supply growth, we still think we’re in the early innings of the adoption cycle.”

Meanwhile, Mike McGlone of Bloomberg continues to see Bitcoin’s diminishing supply combined with the historically low interest rate and a substantial amount of money being pumped into the system to act as catalysts to take it to $100,000.

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Author: AnTy

The Elephants are Moving In; Next Will be the Baby Boomer Wealth: Galaxy Digital CEO

The Elephants are Moving In; Next Will be the Baby Boomer Wealth: Galaxy Digital CEO

Morgan Stanley is now considering becoming a Bitcoiner.

The banking giant’s $150 billion investing arm, Counterpoint Global, is considering adding Bitcoin to its list of assets, reported Bloomberg, citing people with knowledge of the matter.

Counterpoint Global is led by Dennis Lynch and looks for unique companies whose market value can increase significantly, something Bitcoin more than fills the criteria.

The group oversees about 19 funds with prominent investments, including Amazon, Slack, Zoom, Shopify, and Moderna.

Moving ahead with its Bitcoin bet would require the approval of the regulators and the firm.

This morning Bitcoin and the rest of the crypto market is recovering from the sell-off that came not long after the price of Bitcoin nearly hit a new milestone of $50,000 following the BNY Mellon announcing support for the digital asset and Canada approving the first North American Bitcoin exchange-traded fund (ETF).

Already, Tesla has bought $1.5 billion worth of Bitcoin, and Mastercard will begin allowing cardholders to transact in selected cryptos on its network.

“The key for Bitcoin’s path higher is to win over more corporate endorsements,” said Edward Moya, senior market analyst at Oanda Corp.

“Bitcoin is no stranger to massive weekend moves and the next several days could easily see some wild swings.”

Even JP Morgan Chase, whose CEO Jamie Dimon called Bitcoin a “fraud,” is looking to get in with its Co-President Daniel Pinto saying that they will support Bitcoin if they find client demand, which isn’t there yet, but he’s certain that’ll change.

As such, according to Mike Novogratz, the chief executive officer of crypto investment firm Galaxy Digital, the market is yet to see more cash rush in, which is the Baby Boomer money — the “giant generational wealth transfer that’ll happen when they die off,” he said.

“I would tell you the big, big group that hasn’t participated is the baby boomer wealth channel in America,” which can’t participate through Morgan Stanley, JPMorgan, Goldman Sachs, Charles Schwab, UBS, and others yet.

But “that’s all going to change in the next two years. I can guarantee it’s going to change because I’m seeing it. We’re working with companies, it’s going to change,” said Novogratz in a recent episode of the Odd Lots podcast.

According to him, that’s why “the elephants,” the banking giants, have been lately moving in. They would first start with their wealth management division and then their trading business.

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Author: AnTy

SUSHI on Altcoin Party Menu, Collaborating with Yearn on a ‘Stealth Project’

Both Bitcoin and ETH are constantly moving up and down dramatically as investors continue to scoop off coins in the spot market while leverage continues to dominate the derivatives market.

Amidst this, DeFi tokens rallied, and the total value locked in the sector is near ATH at $14.55 billion, as per DeFi Pulse.

Sushi is actually the DeFi token, which is leading the market with 287% gains in the past month, 84.75% in the last week, and is up over 27% today while trading at $2.26.

The recent price rally has pushed its price/sales ratio to just over 7x, which is still below 11x that of Uniswap and 45x of Balancer.

The uptrend has been despite the reports that a potential SushiSwap exploit was discovered and subsequently confirmed on Twitter by 0xMaki, General Manager at SushiSwap.

According to 0xMaki, the culprit got around $10-15K from the 0.05% fees cut of SushiSwap. The exploit was on the Sushibar for fees, but the issue was quickly resolved, and according to reports, the individual responsible for abusing the loophole was also identified by GM 0xMaki as a community member from SNX & possibly ESD.

The gains have been propelled by SUSHI’s merger with Yearn.Finance. After Cream, COVER, AAVE, Akropolis, and PICKLE, YFI’s Andre Cronje announced the alliance with SushiSwap.

In his merger announcement, Cronje said while Sushiswap did some things wrong, much has been done right.

With Sushi focused on expanding their AMM ecosystem and Yearn on their strategies, the overlap has become apparent; as such, it made sense “to take the relationship to the next level.”

The Synergies

Both the projects are merging their development resources to increase their TVL. Sushi will be launching Deriswap — a protocol that combines different DeFi services, including options, loans, and swaps into a single contract — in collaboration, following which it will also be involved in a “stealth project” with Yearn.

The token and governance of Sushi will stay the same, but Yearn will participate in it and add to its treasury some SUSHI the same way Sushi will do to Yearn.Finance. 0xMaki will lead the AMM arm of yEarn while the launched money market will use Sushi LP as collateral.

Cronje’s Yearn project will help create Sushi vaults so people can earn SUSHI-ETH-YFI-wBTC, and its strategies will also use Sushiswap moving forward.

His other project Keep3r, will be integrated inside Sushibar v2, move the full treasury as liquidity to Sushiswap KP3R/ETH (~$11MM), implement on-chain limit orders, stop loss, and take profit for Sushiswap LPs, and will offer gasless swaps via MetaWallet for Sushiswap trades.

Other synergies involve Cream protocol reserve to provide liquidity to Bento Box, Cover agnostic protocol to use SUSHI as coverage, and Coverage money market to include Sushiswap perpetual coverage.

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Author: AnTy

Bitcoin in Re-Accumulation Phase, Volatility Hits Two-Year Low

Over the weekend, the price of Bitcoin started moving north, making its way from around $10,400 to above $10,700. Trading in the green currently, but the ‘real’ volume at just $824 million is not providing confidence.

While volume on spot exchanges is low, institutional interest in Bitcoin has been “flashing strong since the 27th of July, the day it went through $10k.”

Also, just a small percentage of greens have been enough to carry the rest of the crypto market up with it. In a rare bout of gains, XRP spiked over 8%.

This positive performance across the markets is the result of President Donald Trump’s recovery after contracting coronavirus.

BitMEX Narrative

The market is trying to recover from the BitMEX incident last week. As a result of criminal charges on the popular derivatives platform, more than 45,000 BTC have been pulled from the exchange.

Bitcoin balance on BitMEX has fallen to 120,000, a decline of 27%.

The day the news of criminal charges from CFTC came, the exchange saw the largest negative net flow to date, as 44,000 BTC were withdrawn. Almost 30% of them were transferred to Binance and Gemini in equal amounts.

Open interest, meanwhile on the exchange that crashed 24% remains at 43k BTC, around $456 million — levels not seen since May 2020.

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Besides BitMEX, another narrative at the top of the market’s agenda is the volatility the market participants will be subjected to in the coming weeks ahead of the US elections.

Getting Too Comfortable?

Bitcoin’s 180-day volatility has dropped to its lowest since November 2018, reaching a 23-month low, indicating the market has been mostly unfazed by the unsettling news of BitMEX. Denis Vinokourov of Bequant noted,

“Implied vol remains well contained and even the skew profile, for both Bitcoin and Ethereum, shows signs of stabilization. The market is very crowded, and it is difficult to see how this will change, especially as the entire liquidity provision is dependent on cheap liquidity (Bitcoin) and yield offerings by DeFi platforms (with Ethereum as the backbone).”

During these last couple of weeks, Bitcoin weathered the several negative news that otherwise would have crashed the digital asset’s price — first KuCoin hack losing $281 million customer funds then BitMEX, and the next day the news of Trump testing coronavirus positive. Trader and economist Alex Kruger said,

“It’s been impressive how little bitcoin has moved during this whole Trump ordeal, as well as during the Bitmex-CFTC news. Vol sellers getting too comfortable.”

This could also mean that bitcoin is in re-accumulation mode. Analyst Cole Garner notes,

“Binance with a 2800 BTC sellwall at $11k. Unstoppable force meets the immovable object. Welcome to re-accumulation.”

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Author: AnTy

Corda’s Blockchain Is Helping 85% of Italian Banks Cut Interbank Reconciliation to 24 Hours

Banks in Italy are fast moving to integrate R3 Corda blockchain for standard reconciliation processes amongst themselves. Currently, close to 85% of Italian banks have integrated with Corda’s underlying infrastructure as part of the initiative to improve interbank reconciliation in the country. This move has seen the average double-checking time reduce from 30-50 days to just 24 hours, quite a milestone in time efficiency, not to mention other fundamentals such as trusted sharing and verification of the same on a blockchain.

Notably, Italy’s interbank reconciliation agreement came into effect back in 1978 to provide guidelines for transfers amongst local banks. It has been pretty much the same for around four decades until in 2019, when a data standardization clause was added with an integration window set between March and October this year.

Following this change, the Italian Banking Association Head of Innovation, Silvia Attanasio, noted that an improvement in the underlying infrastructure was inevitable, hence the shift to decentralized tech.

“The benefit is related to the new standardization more than the technology itself, It’s like the rhythm you set on your metronome that sets a [faster] timeline.”

It is quite noteworthy that the Corda based network has been designed by NTT Data and is run by SIA, a bank tech company. With 55 members so far, this project’s stakeholders are optimistic that the number will grow to above 80 as it prepares for a final phase in October.

The Value Proposition in Decentralization

Bitcoin’s inception brought forth the concept of decentralization, an idea that has proven to be even more valuable in other ecosystems compared to payment networks. That said, experts in various industries, especially financial services, have taken the forefront in experimenting with the value proposition of blockchain tech. In Italy, for example, the banks had initially considered a centralized database, but it didn’t sail through since stakeholders wanted to ledgers at the very core.

Other than a fast and trustworthy clearance avenue, blockchain tech reduces risk exposure according to Silvia’s sentiments. This is because only banks are integrated into the Corda blockchain hence shielding clients from shortcomings that might have otherwise affected them directly,

“If we failed in this process, the worst thing that could happen was to have a problem in the information exchange between banks …. Clients are not affected, the companies are not affected. It was a natural sandbox.”

While the Corda project is still in its early stages, some Italian banks have already begun experimenting with KYC data integration such that they can seamlessly share information. Italy has also signaled an interest in participating in the pilot phase of the digital Euro.

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Author: Edwin Munyui

Privacy-Focused Crypto, Beam, to Jump Into DeFi With ‘Confidential Assets’ In Upcoming Hard Fork

Beam, one of the significant privacy-focused crypto assets, is moving into the DeFi space in a bid to disrupt the $1.5 billion booming market. The project has since confirmed its second hard fork on June 28, an upgrade that will facilitate its debut in the DeFi space. This milestone comes with several modifications in Beam’s ecosystem hence the bold move towards ‘Confidential DeFi.’

To enhance its privacy levels, Beam is built on the mimblewimble blockchain. This network designed to minimize transaction size to handle more activity, creating room for scalability. Also, it prevents one from reusing a blockchain address hence making it difficult for analytics firms to track crypto funds transferred on its chain.

With the DeFi market on a steep growth curve, Beam now wants to bring its underlying privacy features into this space. Currently, it is almost impossible to operate anonymously, given all transactions are recorded on Ethereum’s public blockchain. This also applies to the Ethereum Name Service (ENS) as well. Beam has since highlighted its goal as,

“Beam will enable true private and decentralized DeFi instruments like private stablecoins and private synthetics which will track commodity, stocks, and ETFs.”

Beam Upgrades in Preparation for DeFi

The new hardfork will facilitate the creation of Confidential Assets dubbed ‘Beam CA’ set to run within the network as independent tokens. This feature is part of Eager Electron 5.0, a recent upgrade designed for the creation of Confidential DeFi apps. Notably, the CA’s are linked with various assets ranging from commodities like gold to crypto-assets such as ETH.

Some fundamental privacy features embedded in the CA’s include sending assets via non-interactive transactions and an option to unlink transaction history. The Beam CA’s will be made available to users who can lock up to 3,000 Beam tokens, roughly $1,400 as of press date.

Apart from CA’s, the Beam hardfork lays the ground for scriptless smart contracts. Beam’s CTO, Alex Romanov, told Decrypt that the project would extend mimblewimble’s infrastructure to enable anonymity in the digital contracts,

“As a part of building a confidential DeFi platform on top of the Beam blockchain, we will enable the creation of Mimblewimble-based sidechains and integrate a wide variety of Scriptless Contracts to support escrows, collateralized debt positions, multiparty transactions, and Oracle-based settlements.”

The hardfork will also scale Beam’s DEX, which is currently available on atomic swaps as it completes the beta phase. Consequently, CA’s will be tradeable against frequently favored assets like BTC, LTC, BEAM, and QTUM once they debut.

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Author: Edwin Munyui

Odds Are In The Bears’ Favor As Bitcoin Is Back on the Downslide

Bitcoin is on a downslide today, moving as low as $9,231. Currently, BTC/USD is trading around $9,350 with a 24 hours loss of 4.55% while managing the daily ‘real’ trading volume of $1.4 billion.

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Source: Coin360

Bitcoin in red has the altcoins incurring losses as well, but for now, the downslide among the altcoins isn’t that harsh. Since early May, Bitcoin’s dominance is actually on a downtrend, going from nearly 69% to 64.65%, which has been the result of altcoins pumping while leading cryptocurrency continues to range.

Now, according to market traders, the odds are in the bears’ favor. But this doesn’t mean, bitcoin will crash to $4k levels as seen in March 2020, $7,000 makes for a somewhat reasonable bear scenario as it would test the first breakout area, said trader Nik Patel.

Trader DonAlt is expecting to see bitcoin to drop to $8,600 sometime soon.

“Big picture we’re still trading in a trading range that had a false breakout to the upside resulting in a down move,” he said. “Makes shorts overall more attractive than longs.”

Analyst – The Cryptomist – is of a similar opinion, as she points out two possible scenarios, both of which are bearish.

According to her, a rising wedge would see us going to $10,000 only to drop while a descending triangle means a significant drop is coming soon.

However, as per the MVRV ratio, bitcoin’s “upside potential remains large.”

Market Value to realized Value (MVRV) ratio indicates whether bitcoin has been trading above or below its fair value relative to its realized price. A ratio between 1 and 2 means BTC could be undervalued while a higher ratio implies overvaluation. Currently, the MVRV ratio is at 1.6, remaining at relatively low levels despite the recent price surge. Also:

Meanwhile, in the US stock market, the tech-heavy Nasdaq composite set the 5th record this month and 21st record of the year, its best winning streak since 1999. Big technology stocks are the ones that are leading much of this rally.

“There’s a lot of money on the sidelines, and as the country reopens, as the economy recovers, that money will be forced back in,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York.

However, fresh highs for tech stocks while volatility remains elevated and may pose trouble for the S&P 500 index, according to BTIG LLC. On Tuesday, while Nasdaq reached a record high, fellow American indexes S&P 500, Dow Jones, and Russell 2000 failed to hit their own new ATH.

US stocks more commonly record gains during periods of low volatility or risk reversal after blowouts of the kind seen during March and April, it said.

And Bitcoin is correlated and cointegrated with the equities market. Anti-China measures and an FED temper-tantrum caused the last three dips in Bitcoin and S&P 500, and coronavirus said analyst PlanB.

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Author: AnTy

Hong Kong Residents Rushing to US Dollars as the US-China Cold War Intensifies

China is moving closer to impose a new national security law in Hong Kong following months of violent pro-democracy protests last year.

This has expats and anyone who can afford to flee Hong Kong and move to other countries. Amidst this, the residents of Hong Kong have been exchanging more and more of their HKD holdings into US Dollars at banks and money exchange counters.

This rush for USD is forcing many exchangers in Hong Kong to turn away hundreds of customers after they ran out of currency amidst the fears that the US could end the preferential status of the city.

Last week, President Donald Trump said the US will end its preferential treatment of Hong Kong as a customs and travel territory from the rest of China. This announcement came just days after the Secretary of State Mike Pompeo said Hong Kong was no longer autonomous from China to warrant special treatment.

China said on Monday that any attempt by the US to harm China will be met with countermeasures.

“Any words or actions by the U.S. that harm China’s interests will meet with China’s firm counterattack,” said Chinese foreign ministry spokesman Zhao Lijian.

HKD’s 36-year-old peg to the US dollar

There are also fears that the Trump administration might break the 36-year-old peg system that fixes the exchange rate of currency at 7.8 Hong Kong dollars per US dollar. HKD was first pegged to USD in 1983.

City’s finance secretary Paul Chan said on Monday that they have no plans to change its currency peg to US dollar and the Asian financial hub hasn’t seen any “obvious” capital outflows yet.

The Hong Kong Monetary Authority (HKMA) along with local banks and investors, all can buy and sell US dollars in the open market.

Moreover, a temporary repurchase agreement was introduced by the US Federal Reserve in March that made it easier for central banks to get USD. This arrangement which is to last six months is part of the efforts to combat the economic effects triggered by COVID-19.

In April, the HKMA introduced a $10 billion liquidity facility to provide all 162 banks in the city with access to USD made available by the Fed.

US dollar is out of stock

Last week, the demand for US currency surged after Chain’s new legislation endorsed to craft a law for Hong Kong that would criminalize acts and activities of secession, subversion of state power, terrorism, and foreign interference.

In response, HK residents rushed to convert their local currency into US dollars, which they view as more stable.

Demand for currency actually increased 10 times last week. More and more customers are looking to switch large sums, “hundreds of thousands or even millions of Hong Kong dollars – at a time.”

“The US dollar is out of stock everywhere. We’ve offered every last bit of our supplies to our customers,” said Eric Wong Wai-lam, who runs Rich Bird Currency Exchange in Sham Shui Po and was forced to turn away 600 customers.

Residents are also looking for alternatives like the pound, Euro, and Australian dollar. “People will take anything you have,” he said.

City’s largest banks, HSBC also had some of the automated teller machines run out of US dollars.

Increased adoption for Bitcoin and Stablecoins

Last year, when protests surged in Hong Kong, the city turned to bitcoin, which traded at a premium. On Paxful, the demand for BTC in the city has been growing throughout 2020 which like last time could see another spike.

Now that there are uncertainties over the city’s economic future, Hong Kong residents may flock to the decentralized, censorship-resistant cryptocurrency and even to USD pegged stablecoins which have been seeing immense adoption during the recent market sell-off.

During the first quarter of 2020, as the USD became a hot commodity so did the stablecoin in the crypto market. One of the reasons for the increased adoption of USD-pegged digital currencies was the global shortage of US dollars.

Moreover, the stock and crypto market could see the effect of the US-China jitters, although for now, both are stable.

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Author: AnTy

Bitcoin Market Update: Confidence is Returning, Bulls are Pushing Hard

Around last weekend, the price of bitcoin started moving up, and then this week, charts exploded as we made our way to nearly $9,500 on April 30.

This sudden and sharp movement resulted in the digital asset seeing first signs of decoupling from the equities market after being almost identical throughout April.

But correlations rely on long term data and now that we are back on the weekend, prices are seeing a lot of volatility. Currently, BTC/USD is trading above $8,850.

“Nice run we had on bitcoin… but then it all reversed. ppl will tell it’s because ‘halving is priced’ and all that. But the truth is because the stocks dropped a lot in the last two days and bitcoin follows stocks momentum like its bitch,” said trader BitBit. “It happens in times of uncertainty.”

Lots of Activity

Bitcoin had a good rally in April and closed the month with massive returns that have the market turning confident again. Bitcoin specifically is showing true strength by increasing its market share while most large caps lost.

Amidst rising BTC price, the USDT market cap grew 25% this month to nearly $8bln, and “its price is trading structurally at a premium to US dollars indicating strong demand,” shared Arcane Research.

Just like Tether, USDC is marching towards a $1bln market cap as the world gets forced to accelerate digital adoption in the COVID crisis.

An increase in trading volumes across spot and derivatives is also recorded which means money is definitely flowing in the market. However, market participants are still withdrawing their BTC from exchanges. After the market crash, the number of BTC exchanges addresses declined by 10% and is trending downwards.

The total futures market crossed nearly $40 billion. However, open interest remains significantly lower than before the sell-off.

“A majority of longs were forced to exit on the 40%+ down day and can’t come back as fast,” noted Skew Markets.

CME traders are back again as the open interest on the platform goes back to 2020 highs, surpassing $300 million this week.

While Deribit completely dominates the options market, BitMEX continues to struggle, recording a historical low open interest this week.

This reduction indicates that traders were forced out of their positions before they initiated new positions as on Wednesday, BitMEX had the 8th largest short squeeze over the past year. Additionally, this could be because of the recent flight from BitMEX to other platforms.

Meanwhile, it’s daily volume was 10 times the open interest.

Additionally, crypto twitter is also doing the “heavy lifting” and seeing more activity than at the peak of the sell-off. “The bulls are pushing hard!”

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Author: AnTy

Vitalik Buterin: Ethereum Miners Can Use Their Obsolete Mining Machines For ZKPs

Ethereum blockchain is in a transition period where the network is moving from a Proof-of-Work consensus to Proof-of-Stake (PoS) consensus, in order to improve the network’s scalability and efficiency. The change of mining consensus was scheduled in phases and the final phase is scheduled to commence in June 2020. While the change of mining consensus has become the need of the hour given the network congestion that Ethereum has faced in recent times, the main worry remains around miners.

Many people are wondering what would existing miners do with their machines once the Ethereum network makes the transition from its current version to Ethereum 2.0. Ethereum co-founder Vitalik Buterin believes that once the network changes the mining consensus, the obsolete mining machines could be utilized for Zero-Knowledge Proofs (ZKPs). Buterin recently appeared for an interview on The Shitcoin Dot Com to discuss Ethereum 2.0 launch (currently in testnet) where the question about obsolete mining machines came up. He said,

“They’re very powerful. First of all, they give you a lot of privacy. Second, they give you a lot of scalabilities, because instead of verifying a really big thing, you just have to verify a really small proof.

You can use them to verify the validity of things, you could potentially use them to replace Merkle trees; cut the Merkle tree branches and witnesses down from hundreds of kilobytes to like a couple of kilobytes, and all of these nice things.”

At present Ethereum uses a custom version of Proof-of-Work (PoW) mining consensus called Ethash which requires miners on the platform to input the high amount of computational power to mine the next block. However, with the change in mining consensus to Proof-of-Stake, not all miners would be required to put in high amounts of computational power, rather the community would select a particular miner based on their on-chain activity or accumulated wealth on the platform.

Vitalik during the interview noted that although the existing mining machines would be of no use on the Ethereum 2.0 blockchain, still miners can dedicate their devices towards Zero-Knowledge Proofs Network.

What is Zero-Knowledge Proofs?

Zero-Knowledge Proof which is also known by their abbreviation ZKPs is an information-sharing protocol. ZKPs allow two parties to share an encrypted form of information between them and either of the parties does not have to know what is the actual info being shared. ZKPs are an important part of privacy centered currency like Zcash which uses a specialized version of ZKPs called ZK-SNARKS which allow customers to send completely encrypted transactions on the network.

Buterin has been a big fan of Zero-Knowledge Protocol for quite some time and has advocated for the same calling it one of a kind technological revolution.

Ethereum 2.0 Launch Less Stressful Than The First Launch: Buterin

Buterin was also asked about how nervous or nerve recking it is to get prepared for such a significant change in the original protocol. The Ethereum co-founder noted that the change in mining consensus is definitely a major milestone but it is not as nerve recking as it was in 2015 during the launch of the platform. He explained,

“It’s definitely a bit less nerve-racking than the first time, just because I’ve been through the whole thing before. Definitely nervous with anticipation, but also just very excited to see all of this stuff finally go live.

It’s important to remember that up until very recently, ETH 2.0 was basically an idea and a dream, as far as most people could tell.”

You can catch the full interview here:

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Author: James W