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Hashrate Tokens Are the Solution to Cloud Minings Flaws

Cloud mining has serious hype around the 2017/2018 bull run waned quickly as the bear market set in. Now, hashrate tokens are taking its place.Sponsored
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Cloud mining providers have slowly waned over time, with some even turning out to be fraudulent or merely Ponzi schemes.

In contrast, hashrate tokens are currently becoming more popular. These new tokens represent new opportunities when it comes to achieving the ultimate goals of cloud mining.Sponsored
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A brief history of cloud mining and hashrate tokens

The original promise of cloud mining was to make crypto mining suitable for the masses. Crypto mining has high barriers to entry for non-professional investors. Access to cheap electricity, purchasing and setting up equipment, and the technical complexity of crypto mining make it difficult for private investors.

In cloud mining, investors sign contracts with cloud mining providers to “rent” a certain hashrate in exchange for payouts in BTC or other cryptocurrencies. The companies take care of setting up and maintaining the associated miners.

However, cloud mining revealed three major problems. Firstly, cloud mining users were frequently victims of scams. Secondly, cloud mining contracts were often too expensive and unprofitable. Thirdly, cloud mining locked-in customers tightly for the entire cloud mining contract term. This meant they had no way to sell these contracts and sometimes sat on high monthly maintenance fees.

Enter hashrate tokens

Hashrate tokens basically work in a similar way to cloud mining. Like the cloud mining contract, certain mining performance backs the hashrate token. Token holders receive distributions in a cryptocurrency according to the mining performance used. 

However, unlike cloud mining, there is no contractual relationship with a company. A smart contract handles governance and distribution.

Different hashrate tokens differ due to their varying underlying proof-of-work blockchains and the respective secured computing power. 

The GoMining Token (GMT) and the Bitcoin Standart Hashrate Token (BTCST) each collateralize a standardized Bitcoin mining power. This is 0.001 TH/s for the GMT and 0.1 TH/s for the BTCST.

The Mine Network is the first decentralized standard hashrate token protocol that solves the liquidity problem of miners in multichains. It standardizes a certain mining performance of different proof-of-work blockchains such as Bitcoin, Ethereum, or Litecoin.

For example, there is the pBTCM as the Bitcoin standard hashrate token or a pFILM as the Filecoin standard hashrate token. EHash is a hashrate token backed by a power of 0.01 MH/s. Holders of EHash tokens are automatically allocated Ethereum via a smart contract.

Providing the opportunities cloud mining missed

Hashrate tokens promise to take the advantage of cloud mining and overcome the weaknesses of cloud mining.

As with cloud mining, hashrate tokens allow people to easily enter the mining market without having to purchase expensive equipment. Moreover, token holders can benefit from cheap electricity from other countries. 

However, by using smart contracts, hashrate tokens eliminate the intermediary. Thus, the tokens promise more efficient settlement and thus higher profitability for the investor.

The biggest advantage of hashrate tokens over cloud mining is their secondary marketability. It is difficult to exit cloud mining contracts during the contract term. However, hashrate token investors can easily buy and sell tokenized hashrates on secondary markets. 

The particular hashrate tokens can be traded on different centralized and decentralized exchanges. The price increases could be all the higher when the respective cryptocurrency rises. This is because the tokens are supposed to act as a leveraged product due to the discounted cash flow. 

Hashrate tokens are not without requirements

Two prerequisites are important for a working hashrate token. 

First, the hashrate token has to reflect a certain hashrate with a certain efficiency in a standardized way. To achieve this, the miner must first prove that the contributed mining energy is freely and unambiguously in his possession.

In addition, the hardware that generates the mining power must be hosted in locations without risks, such as unclear regulation. In current protocols, this is usually to be ensured by a third party, for example, a mining pool. 

Another prerequisite for a hashrate token to work properly is sufficient market acceptance. Only with enough market participants providing enough liquidity can an efficient hashrate secondary market emerge. Too volatile, a token valuation does not fit with a stable mining value proposition. 

Linking traditional mining and DeFi

Hashrate tokens may indeed become the new cloud mining. They provide all the benefits of cloud mining, plus the promise of even greater efficiency and secondary marketability.

Hashrate tokens create a link between traditional mining and DeFi but have yet to prove whether they achieve sufficient standardization and market acceptance.Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Founder and CEO of Crypto Oxygen Lukas combines profound industry expertise and practical experience in crypto mining with a comprehensive MandA strategy and project experience. Lukas has been in crypto mining since 2017 and can be considered a veteran of the young mining industry. With more than 100 employees, he successfully built mining sites on an industrial scale on several continents. Based on his background in MandA consulting and private equity investments, his focus has always been on combining crypto mining with the “traditional” financial world.

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Senator Warren Requesting Operation Information From Carbon-Neutral Bitcoin Miner

US Senator Elizabeth Warren is requesting information on the operations of the country’s first carbon-neutral Bitcoin miner.Sponsored
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In the letter to Greenidge Generation Holdings Chief Executive Officer Jeff Kirt, Warren formally requested information on the company’s power production and Bitcoin mining operations in New York State. She said this information was necessary to understand the potential impact the company may be having on climate change, the local environment, and the cost of electricity for retail consumers. 

“Given the extraordinarily high energy usage and carbon emissions associated with Bitcoin mining, mining operations at Greenidge and other plants raise concerns about their impacts on the global environment, on local ecosystems, and on consumer electricity costs,” the Senior Democratic Senator from Massachusetts wrote in the letter.Sponsored
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While known for her fiery disposition towards cryptocurrencies, this marks the first time Warren has pushed a specific crypto-related company for information. With energy consumption matching that of some large industrialized countries, mining is just another aspect of cryptocurrencies drawing fire.

Greenidge reply

Greenidge made a brief reply saying it would produce the requested information to demonstrate that “the facility meets all of New York’s nation-leading environmental standards, is bringing economic opportunity to an under-served area of the state and is a model for crypto mining with widespread local support.”

Greenidge, which listed on the Nasdaq earlier this year, touts itself as the first carbon-neutral Bitcoin miner in the U.S., after establishing its first plant in Dresden, New York, which is powered by natural gas. In addition to buying carbon offsets, the Atlas Holdings-controlled company plans to use zero- and low-carbon sources of electricity for future mining operations, such as in South Carolina.

Crypto in the House

Miners are not the only ones finding themselves increasingly finding themselves beholden to requests from Congress. Earlier this week, the House Financial Services Committee requested the appearance of several top executives of cryptocurrency-related companies to testify before them. Among those summoned include crypto exchange FTX CEO Sam Bankman-Fried and former Binance.US CEO Brian Brooks.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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Silo, Winner of ETHGlobal’s 2021 Hackathon Launches Genesis Token Auction

Silo has announced the launch of its Genesis Token Auction to decentralize its protocol and raise Protocol Owned Liquidity for its Decentralized Autonomous Organization (DAO). Sponsored
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The Token Auction will run on Gnosis Auction from December 6, 2021, at 3:00 PM UTC to December 9 at exactly 3:00 PM UTC. 

According to Aiham Jaabari, one of the founding contributors of the Silo, “Unlike ICOs of 2017, where funds raised went to the company developing the protocol; The Protocol Owned Liquidity raised by Silo is always in control of the community. The community, therefore, can direct it to achieve sustainable growth of the protocol. Strong DAOs establish a culture of togetherness, fairness, and transparency, and we think auctioning off tokens on Gnosis Auction where the entire community establishes a fair value for the project is the first step to build such a culture; for Silo DAO.” Sponsored
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The Silo team has also announced their plan to launch Silo’s secure money markets in early 2022. It will aim to bring money markets to all crypto assets by leveraging its permissionless, risk-isolating protocol. Although the 1st-generation lending markets like Aave and Compound are efficient, they expose users to unwanted risks because shared-pool markets can have exploitable assets that impact all assets in those markets. CREAM Finance and Venus both suffered from exploits in the past due to the same reason. 

Silo implements money markets differently. Instead of having a single pool for all tokens, Silo has created one pool for every token. Every pool is limited to one unique token, with ETH serving as the bridge asset. For any user to use token “A” as collateral to borrow token “B,” the user must move the bridge asset between Silo pools, just like Uniswap trading pools. The only counterparty risk in Pool B will be ETH and not token A.

By isolating the risk of all tokens to one pool and connecting the pools using ETH as bridge assets; Silo creates risk-isolating lending markets for every token; any token can serve as collateral. 

This is a public token auction by Silo. It will be conducted on Gnosis Auction. Silo will offer 10% of its token supply to the community through the auction. All funds raised in the auction will be distributed in two major ways:

About 85% of the funds will be locked in the DAOs treasury and controlled by the community through governance (Protocol Owned Liquidity).The remaining 15% will be used as a development fund for operational expenses of Silo Protocol like security services, payment to contributors, infrastructure services, etc. 

The team went for the Gnosis Auction over other available options like Balancer LBPs due to its benefits. Aside from the fact that Gnosis Auction ensures fair pricing and eliminates the possibility of rug-pulling, it also offers other benefits. It allows the auction to close with a single clearing price for all tokens; it doesn’t matter how much the winning bidder bids.

The implication is that if a bidder bids $5/token and the clearing price ends up being $1/token, the bidder will only pay $1/token. Bots cannot purchase tokens, and there is also fair and relaxed token distribution as the bidding process is user-friendly. 

Silo is a non-custodial lending protocol that is capable of implementing secure, efficient, and inclusive money markets. It implements isolated money markets where each Silo only contains two assets (a unique token and the bridge asset). Silo is a permissionless protocol that permits any user to create a market for any token. As a non-custodial lending protocol, Silo allows users to borrow against any cryptocurrency asset. 

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Bitcoin Miners Continue Accumulating — BTC On-Chain Analysis

BeInCrypto takes a look at Bitcoin (BTC) on-chain indicators that relate to miners, more specifically the total miner revenue and Puell multiple. Sponsored
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Total BTC miner revenue

Total miner revenue decreases in half every four years, as indicated by the dotted vertical lines. This occurs due to the BTC halving event, the most recent of which occurred in May 2020. 

A look at the indicator since May 2020 shows that total revenues have been between 950 and 1050 BTC (black lines), with the exception of a sharp fall during the July market drop. However, that was corrected by the biggest difficulty adjustment in history. Sponsored
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Currently, total miner revenues are at 880 BTC, the same level as they were in November 2020, prior to the acceleration of the upward move towards the April all-time high BTC price.

Market commentator @BTC_Archive tweeted an image that shows that accounts that belong to miners are accumulating once again. Accumulation by miners usually occurs during the beginning of long-term bullish trends. Therefore, the fact that these accounts are accumulating shows that conviction in the market is still strong.

Puell Multiple 

The Puell Multiple is an on-chain indicator that is created by dividing the value of all minted coins by a yearly moving average.

Values between 4 and 10 (red) are normally associated with market cycle tops. Conversely, those between 0 and 0.5 are associated with market bottoms.

So far, the 2021 market cycle has been the only one in which a value between 4 and 10 hasn’t been reached. The yearly high so far has been 3.43, reached in March.

The indicator currently shows a value of 1.26, which has historically been reached in the middle of bullish trends. 

Therefore, according to this indicator, there is still more room to grow for BTC.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto’s Senior Analyst.

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Bitdeer Group Contributes to Local Communities in Wyoming and Texas

Bitdeer Group provides digital asset mining services to individual and institutional clients around the world and has set up branches in North America, Europe, and other regions.Sponsored
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It is committed to convenience, user satisfaction, and reliability, in addition to giving back to the local communities where it operates. 

Bitdeer Group views community engagement as a top priority. These opportunities give Bitdeer a platform to actively solve problems in the community while building a better future for its employees as well as their friends and families. Sponsored
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Bitdeer Group is enthusiastic to contribute in any way it can; from financial donations to facilitating educational programs and expanding career opportunities. Most recently, Bitdeer’s community contributions include sponsoring the University of Wyoming WyoHackathon and making a critical donation to the Rockdale Volunteer Fire Department.

The University of Wyoming WyoHackathon: using Blockchain to reimagine economic revitalization 

On September 15, 2021, Bitdeer Group sponsored the University of Wyoming’s annual WyoHackathon. Bitdeer Group’s contribution allowed University of Wyoming students to engage with cryptocurrency industry experts as well as leaders across the spectrum of emerging blockchain use cases. 

Bitdeer Group also participated in a workshop for the university’s Mining Club. Bitdeer group brought an S19 mining machine and explained the hardware’s computing mechanisms as well as demonstrated industry-standard repair techniques. 

Bitdeer Group wanted to be involved with the WyoHackathon to further develop Wyoming’s ambitions to become the epicenter of blockchain tech in the United States. Joining forces with the University of Wyoming dually cultivates talent for the future of the industry.

Donation and involvement in Rockdale, Texas

One of Bitdeer Group’s largest mining data centers is in Rockdale, Texas. Like many rural parts of the U.S., Rockdale does not have a government-funded fire department. On October 27, 2021, Bitdeer Group donated to the Rockdale Volunteer Fire Department. This donation enabled these brave first responders, who also have full-time ”day” jobs, to purchase emergency ventilator equipment. 

Bitdeer Group is planning a concerted community engagement strategy for 2022, prioritizing initiatives that facilitate sustained economic impact which include social responsibilities from tax contribution to local government, to increased job opportunities and economic returns for the local community.

About Bitdeer Group

Bitdeer Group is the world’s leading digital asset mining service provider. It was founded by Jihan Wu, Co-Founder of Bitmain and Matrixport, with venture investment from Sequoia Capital, IDG, and other well-known investment groups in the blockchain space. Headquartered in Singapore, Bitdeer Group currently operates in the United States and Europe.

The Group has three business lines — Bitdeer, Mining Datacenter, and Minerplus — demonstrating the dedication and expertise to become the world’s most reliable digital asset mining service provider. 

For more information, please get in touch with Bitdeer Group: Website, LinkedIn, Sales Consultation, Business Cooperation, Mining Datacenter Partnership.

* Information provided in this article is for general information and reference only and does not constitute nor is intended to be construed as any advertisement, professional advice, offer, solicitation, or recommendation to deal in any product. No guarantee, representation, warranty, or undertaking, express or implied, is made as to the fairness, accuracy, timeliness, completeness, or correctness of any information, or the future returns, performance, or outcome of any product. Bitdeer expressly excludes any and all liability (to the extent permitted by applicable law) in respect of the information provided in this article, and in no event shall Bitdeer be liable to any person for any losses incurred or damages suffered as a result of any reliance on any information in this article.Disclaimer
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Bitcoin (BTC) Continues Consolidating Below Major Resistance

Bitcoin (BTC) looks to be gearing up for another breakout attempt above short-term resistance. If successful, it would confirm that the current correction is complete.Sponsored
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BTC has been decreasing underneath a descending resistance line since Nov 10 after it had just reached a new all-time high price of $69,000. So far, it has reached a local low of $53,256 on Nov 28. It rebounded after reaching this low and has been increasing since. 

The main resistance area is found near $59,350, created by both a horizontal resistance and the 0.382 Fib retracement resistance level. Furthermore, it coincides with the previously outlined descending resistance line that rejected BTC twice, on Nov 30 and Dec 1.Sponsored
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As long as the price is trading below this resistance line, a bullish trend reversal cannot yet be confirmed. A breakout above this line would confirm that the correction is complete.

The 30-minute chart shows a horizontal and 0.5 support located at $56,250.

As long as BTC is trading above this level, the potential short-term bullish structure remains intact and another eventual breakout attempt is likely.

Long-term BTC movement

The daily BTC chart is still bullish, mostly because of the bullish candlestick that was created on Nov 28. 

Firstly, the candlestick validated the $53,350 area as long-term support. This is both a horizontal support level and the 0.5 Fib retracement support.

Secondly, despite the short-term decrease, the price is still contained inside the body of that bullish candlestick. As seen in the 30-minute chart, BTC is still above the midline of the candlestick. 

As long as it is trading above these levels, the trend can still be considered bullish.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto’s Senior Analyst.

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Crypto Assets in India Will Be Regulated and Monitored, Not Banned

According to the latest reports, the Indian government is reportedly looking to regulate the crypto asset class instead of banning it. This is a U-turn from previous reports suggesting that cryptocurrencies would be banned.Sponsored
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News of India’s stance on the cryptocurrency asset class has once again taken a new form, as reports from local media outlets suggest that the government will opt for regulation instead of a ban. News outlet NDTV announced that it had obtained details of a cabinet note that stated various regulatory measures.

Specifically, Indian investors will have a limited time to declare their crypto holdings. They will then have to move their assets from private wallets to selected regulated exchanges. That means they will not be allowed to use wallets like hardware wallets instead of being mandated to hold them on centralized exchanges.Sponsored
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The idea is to prevent money laundering and other illicit activities by being able to track the asset flow. The exchanges themselves will be overseen by the Securities and Exchange Board of India (SEBI), which will no doubt require platforms to undergo registration.

Last month, reports emerged that the government was proposing a bill that would ban the asset class, which led to panic selling on popular local exchange WazirX. Crypto-supporters have been lobbying against a draconian ban, which they say would set India back economically.

Lastly, the bill also reportedly states that cryptocurrencies will not be accepted as legal tender, which has been talked about in the past. India is preparing to launch its own central bank digital currency (CBDC), though there have been no details offered on that yet.

Better than a crypto ban, though specifics are concerning

India has a long history of flip-flopping on its crypto stance. For years, reports have either said that it would be regulated or banned, leading to some worrying uncertainty for investors. The government has formed panels to review the asset class, and the result has always been one of uncertainty.

The new rules would see taxation and oversight measures imposed on the market. On the whole, this is better than a ban, as it allows investors to hold on to their assets.

While Indian investors will likely be happy about the move away from a ban, there are some concerns surrounding the stipulations on the bill. Moving assets to centralized exchanges have obvious downsides, such as those related to security.Disclaimer
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Rahul’s cryptocurrency journey first began in 2014. With a postgraduate degree in finance, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has guided a number of startups to navigate the complex digital marketing and media outreach landscapes. His work has even influenced distinguished cryptocurrency exchanges and DeFi platforms worth millions of dollars.

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DeliAlgo: An Ideal Financial and Technological Ecosystem of Digital Economy

DeliAlgo ecosystem kicks off in Southeast Asia with F&B services, content creation platform, and financial management platforms applying AI technology. Sponsored
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DeliAlgo brings technological innovations to consumption, monetization, and financial management, creating real value for DLC tokens owned by users and used throughout the ecosystem.

State of technology in the digital economy

In less than a decade, the world had witnessed the rise of the 4.0 revolution, when concepts such as artificial intelligence (AI), the internet of things (IoT), and Big Data applied to almost all factors of social life. Besides, the strong influence of Blockchain technology and cryptocurrencies is also changing traditional finance. It can be said that the above technologies are essential methods and tools to build a superior society in the new era.Sponsored
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However, the current technology application platforms and services are not closely linked and mixed with traditional financial methods, creating an unsustainable whole. The digital economy needs to be leveraged by sustainable economic and technology ecosystems, where closely linked platforms and services influence each other under a co-development mechanism.

About DeliAlgo

DeliAlgo is a Singapore-based technology investment company, operating in many fields since 1997. From 2021, DeliAlgo focuses on investing in building a financial and technology ecosystem.

“DeliAlgo’s vision is to create a vast technology ecosystem where all products and services are fully compatible with the needs and desires of the users. Users do not stop at the purpose of using DeliAlgo’s services, but also contribute to the value chain of the ecosystem through smart investment solutions supported by modern financial management tools” – Mr. Kim Seung Jong – Founder & CEO DeliAlgo.  

The DeliAlgo ecosystem starts off with the provision of services in Southeast Asia. In addition to its ever-evolving economies of scale, Southeast Asia also has a considerable youth market where easy access to new technology concepts and investments in the future dominate. Robust internet infrastructure and crypto-friendly legislation compared to the rest of the world are also why DeliAlgo chose this region.

Products in the DeliAlgo Ecosystem

DeliAlgo provides an ecosystem for intelligent consumption, monetization, and financial management with critical products and services including:

ContentChill – Content creation platform.Delichill – Food delivery and marketing services (in the Vietnamese market first).DeliFinance – AI-powered financial management platform

With a team of years of experience in finance and technology, DeliAlgo promises to conquer users with high-tech products and services that are pervasive to all areas of society at a reasonable cost for users.

DeliAlgo’s goal is to build a complete ecosystem, fully develop the necessary pieces, fully serve users’ needs, and retain users. Since then, DeliAlgo has aimed to become the leading financial and technology ecosystem in the region and the world, contributing to the development of the digital economy.

DeliAlgo uses the DLC token (Delicoin) to fuel the platform and pay for services in the ecosystem. DLC is a multifunctional token that benefits its holders towards upcoming projects in the DeliAlgo ecosystem. With marketing campaigns and global events planned, Delicoin has a bright future ahead of it.

Token information:

Full Name: DeliCoinShort name: DLCTotal Supply: 2,500,000,000 DLCBlockchain Platform: Binance Smart ChainSmart contract

Visit the social media: Website | Youtube | Twitter | Facebook.

Join the community: Telegram.

Read the Whitepaper | visit the Website | Read the business profile: Business Profile – DELI-ALGO INTERNATIONAL PTE. LTD. – 2021-08-03_0.pdf.Disclaimer
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Next Big Ethereum Upgrade Could Reduce Layer 2 Gas Fees

A recent Ethereum Improvement Proposal (EIP) put forth by network co-founder Vitalik Buterin aims to address transaction costs, one of the network’s greatest drawbacks.Sponsored
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Last month, Buterin put forward EIP-4488 which aims to decrease the transaction ‘calldata.’ This could provide some short-term respite from those galloping gas fees.

The primary purpose of the proposal is to reduce gas fees on Ethereum’s expanding ecosystem of layer 2 scaling solutions.Sponsored
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Ethereum developers have reacted positively to EIP-4488 taking to Twitter to explain what is under the hood. Technically, EIP-4488 reduces the calldata cost from 16 to 3 gas per byte, while adding a cap on calldata per block to mitigate security risks.

As one researcher put it, “rollup cost overhead decreases, thus lowering L2 fees.”

Lowering L2 fees

The researcher elaborated that it does not directly increase layer 1 data capacity, “but rather balances cost of execution with cost of data in favor of rollups, while retaining a similar max capacity,” adding:

So long-term we definitely need sharding for the capacity increase, but short-term we get to enjoy lower rollup fees.

He added that data availability is the most fundamental scaling problem, and this EIP is a “relief for L2 protocols that are fighting it.”

On Dec 2, Buterin said, “the whole point is to make a quick-and-dirty solution because rollups need it fast.” He explained that the cost of a rollup transaction is a function of the data they post back to the Ethereum mainnet.

To do this, rollups add calldata to their transactions, which is currently priced at 16 gas per byte. If we reduce the calldata cost, then we reduce the cost of rollup transactions.

Buterin has previously touted layer 2 solutions as the short-term fix to Ethereum’s scaling issues.

Another proposal, EIP-4490, has been put forward to reduce gas costs prior to “the merge.” According to the official documentation, the current time frame for docking Ethereum with the Beacon Chain will happen in the first half of 2022.

Ecosystem outlook

Layer 2 network adoption has exploded in recent months as gas fees march ever higher. At the time of press, the average cost of a transaction on layer 1 Ethereum is around $37 according to BitInfoCharts.

The current total value locked (TVL) across all L2 networks is $6.62 billion according to L2beat. Over the past three months, TVL has surged by around 700%. Arbitrum is currently the leading L2 protocol with a market share of 40% and a TVL of $2.65 billion.Disclaimer
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Martin has been covering the latest developments on cyber security and infotech for two decades. He has previous trading experience and has been actively covering the blockchain and crypto industry since 2017.

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Elon Musk Criticizes Web3, Says It ‘Sounds Like BS’

Elon Musk criticized Web3 on Twitter in response to a thread by OpenAI CEO Sam Altman. Musk called the space “BS.”Sponsored
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Elon Musk has stirred the pot once again, saying that “Web3 sounds like bs” on Twitter on Dec 2. Musk was responding to a thread by OpenAI CEO and former Y Combinator president Sam Altman, who was talking about venture capital investments.

Altman was making a prediction about the returns for venture capital investments. He predicts that the coming decade will see far worse performance than compared to the 2010s, which has been very lucrativeSponsored
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But he ends his thread by saying that Web3 could still be a field that sees the same kind of returns as was common in the past decade. Musk obviously does not think so, though he seems somewhat accepting of the crypto market as a whole, given past statements.

Musk’s comments are sure to rile the crypto community, some of who have already dismissed it as just another incendiary comment on the Twitter space. The crypto community is all for the decentralization of the internet, which is what Web3 is trying to facilitate.

This isn’t the first time that Musk has made a controversial comment on something crypto-related. At least compared to his Dogecoin comments in the past, this is a somewhat mild statement by his standards. However, it’s hard to really label Musk’s stance as anything but unique — he even said that the U.S. government should not regulate the cryptocurrency industry.

Web3 considered critical by many

Web3 is touted as one of the most promising ideas to come out of the crypto space. Several viable solutions exist on the market, like decentralized domain name services like Unstoppable Domains.

This prevents censorship of websites, and generally speaking, the prevention of censorship is at the heart of Web3’s overall ethos. Increased privacy, security, and control of identities is also an important part of Web3’s general agenda. Many projects are working on such solutions and have made considerable progress.

The Web3 field has also been making good progress with adoption. Web3 protocol revenue over the past few months has been growing, as noted by Web3Index. It’s still very early days in the development of the overall Web3 architecture, but recent technological developments have helped boost performance and utility.Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Rahul’s cryptocurrency journey first began in 2014. With a postgraduate degree in finance, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has guided a number of startups to navigate the complex digital marketing and media outreach landscapes. His work has even influenced distinguished cryptocurrency exchanges and DeFi platforms worth millions of dollars.

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