Bitcoin Cash (BCH) Wormhole vs Ethereum (ETH) ERC20 Token Protocol

Corbin Fraser, one of the lead developers for Bitcoin.com, said, “For better or worse, ICOs and CryptoKitties are probably coming to Bitcoin Cash in the …
Bitcoin Cash

New Token From Bitcoin Cash Brings Forth the Wormhole Protocol, Which is Potential Threat to ERC-20

On August 11th, Roger Ver, the CEO of Bitcoin.com, announced that the company would be unleashing a new tool on Bitcoin Cash. This new tool gives developers the option of issuing tokens, involving a process called the Wormhole Protocol. With these new possibilities, the door is wide open for chain in the blockchain industry. Corbin Fraser, one of the lead developers for Bitcoin.com, said, “For better or worse, ICOs and CryptoKitties are probably coming to Bitcoin Cash in the near future.” However, one of the big suggestions is that this new option has the potential to eliminate the need for ERC-20.

Understanding Tokens and Coins

The two assets dividing the cryptocurrency market are coins and tokens. Though some experts use the phrases interchangeably, they actually are not the same at all. Coins are used as ways to pay and have the support of original blockchains. Tokens, on the other hand, are part of Initial Coin Offerings (ICOs), which are when a company holds a sale before their platform is active. Tokens are also based on an existing blockchain, rather than an original. A good example of that is in the way that 82.86% of tokens are built on the Ethereum blockchain, using technology that is already in place, rather than establishing their own system.

What Makes ERC-20 the Chosen Blockchain?

With such a high number of ICOs developing their platforms on top of Ethereum blockchain, it may be smart to wonder why. After all, it is referred to as “the king of DApps” as a result of the popularity. “ERC” stands for “Ethereum Request Comments,” and it was originally published by Fabian Vogelstellar on GitHub in 2015. The information outlines the way that these tokens are required to work on the ecosystem, even down to how many tokens can be issued.

Through its short lifetime, users have enjoyed how simple and straightforward the ERC-20 principles are, especially considering that it does not take an engineering degree to work with it. Mainly, developers only have to copy the coding from GitHub, decide how many tokens they want to have, establish a name and a symbol. Then, after putting some ETH into the blockchain, the token is ready.

Based on the most recent numbers, it seems that there are over 110,000 tokens under this protocol, with some of the most popular ones being EOS and TRON, which are in the top 12 for market cap. There is a surprising number of those tokens that are not actually directly used, because of the need to adhere to the regulatory measures in the industry still. Though it took a while, Ethereum is “not a security,” according to the SEC, but that does not trickle down to the tokens on the ERC-20 blockchain. The deciding factor is how they are marketed, and most of them are just a representation of shares.

Problems With ERC-20

Since ERC-20 was the first version of Ethereum-based protocol issued in the industry, there are still many problems that come with its use, most of which have revealed themselves over time. One issue that made headlines is the batchOverflow bug. With this flaw, if users send ERC-20 tokens, rather than ETH, the funds get stuck inside the receiving smart contract. Basically, users cannot use tokens from ICOs, and this has accounted for $3 million in losses, and the developers still only are willing to call this a “user error,” rather than assuming the blame of a bug in their system.

After the bug, there were multiple exchanges in April this year that stopped deposits and withdrawals that involved ERC-20 tokens, based on the glitch. As a result, it seems that developers of ERC protocols are trying to eliminate the ERC-20, bringing in options that will either hide the problems or bring in new features. Presently, there is:

  • ERC-223, which corrects the problems in ERC-20
  • ERC-721, which brings in collectible tokens, like CryptoKittens
  • ERC-948, providing an opportunity in a subscription

There are still others in the works, but Wormhole has the potential to truly compete against ERC-20, with no ties to their blockchain.

Bitcoin Cash’s Wormhole

Wormhole is not a bug or a glitch, and it certainly does not hold the same risks at ERC-20. Specifically, this protocol is more of an upgrade or an update that works on the Bitcoin Cash blockchain. It was created and introduced by a team of developers under Jiazhi Jiang, who presented the whitepaper in July. Basically, integration of Wormhole means that users can apply a smart contract feature, but without any of the rules it runs by on Bitcoin Cash’s blockchain. There is an opcode, OP_RETURN, used on the platform to make this possible.

The new protocol also makes it possible to support native tokens, which are involved in smart contracts on the BCH blockchain to develop ICOs, and the tokens are referred to as Wormhole Cash (WCH).

A Challenge to ERC-20

With these changes, and without the issues that ERC-20 platforms deal with daily, it is clear that there is now a strong rival for the top spot in the industry. ERC-20 is heavily tied in with almost any ICO though, so it is uncertain if they will have the chance to outperform, despite their benefits. They are still new, so the industry will probably be taking a close look to see how potential bugs impact Wormhole.

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Ethereum News and ETH Price Chart: ICOs Are Blamed for the Falling Prices of Ether. Friday …

Among the top coins, there is none hit as hard as Ethereum as ether, the currency of the platform plunges almost on daily basis. In recent days, the …

Important Ethereum News

ICOs Are Blamed for the Falling Prices of Ether

The coin market has been experiencing tough times in recent times with some coins losing as high as 40 percent of their value in days.

Among the top coins, there is none hit as hard as Ethereum as ether, the currency of the platform plunges almost on daily basis. In recent days, the cryptocurrency has seen losses that brought its value at par with its price nearly a year ago.

As at the time of this report, ether is trading at $300.48 according to Coinmarketcap. This is an increase from days ago when the coin fell to $255.78, figures last seen nearly a year ago.

With the losses in the value of ether, Bloomberg reported that ICOs which were responsible for the rise in the value of ether last year have started cashing out their funds, oversupplying the coin market with ether and bringing bearish pressure on the coin.

Buterin Described As the Guardian of Ethereum

The Ethereum co-founder Vitalik Buterin has been described as the guardian of Ethereum. Jason Hsu said this at “Blockchain at Berkeley” meeting students meeting.

Buterin in the meeting spoke about his projects at Ethereum saying:

“Recently, I am spending a lot of time working on the proof-of-stake and sharding protocols. This is what the Ethereum research community is focusing on more than anything else at this point. We think that proof-of-stake and scaling are both really important and there has been a lot of progress on improving the algorithms and the development of multiple limitations over the last couple of months”

ETH Price

Ether May Gain Momentum Above $304

The price of Ethereum could break the $304 resistance on its way up in a surprising twist of events. Ether which has been under a lot of bearish pressure was expected to dip more as we approach another weekend. However, it is experiencing upside against the dollar in the meantime.

Technical analysis shows that the coin may still drop to the region of $288 to $290 before climbing back up. Generally, Ethereum is expected to test the $304 mark.

ETH/USD Price Chart, Friday August 17th:

Ethereum News and ETH Price Chart: ICOs Are Blamed for the Falling Prices of Ether. Friday, August 17

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Blockonix Decentralized Ethereum Exchange Claims Lowest Fees Versus Competitors

This platform is focused on trading Ethereum and Ethereum-based digital tokens and it has a worldwide reach. According to the team, the company is …
Blockonix Decentralized Ethereum Exchange Claims Lowest Fees Versus Competitors

Decentralized Ethereum Exchange Promises Lower Fees Than Rivals

Blockonix has a strategy to dominate the market: really low transaction fees. According to the company, its exchange the most and user-friendly of them all and it offers really low fees for users who use the native token of the exchange. According to information from the company, the fees are one percent if the person does not use native tokens and 0.03 percent if it decides to use them.

The idea is that the company will offer a marketplace that can be more cost-effective than the one from many other popular companies of the market like EtherDelta, Idex and ForkDelta.

This platform is focused on trading Ethereum and Ethereum-based digital tokens and it has a worldwide reach. According to the team, the company is promoting a new wave of payment and futuristic apps that will help the clients. The exchange is fully decentralized and it does not store any of the assets of its clients.

Unlike other decentralized exchanges, Blockconix does not earn money from the platform directly. All the fees collected on the platform are used to buy back BDT tokens and burn them. This includes the 5 ETH fee that you have to pay to list your token on the platform, too. Instead of being motivated by profit or money, this platform is moved by the community, it affirms.

According to the company, the fees are so low because the company has developed the right technology to cut down operational costs greatly. However, the security is still a priority for the company.

A Change of Plans Because Of The Indian Government

Blockonix did not always have this name. Initially, the company was called BitIndia and it was focused on the Indian market of cryptocurrencies. It would be exclusive for Indians, but the company had to change its stance when the government decided to go against cryptos.

The decision was tough, but the company rebranded and it focused on the international market instead of the Indian one. In case you do not know, the Indian government has severely limited banking access to Indian cryptocurrency exchanges and has a general negative stance on the issue.

Most of the people holding BitIndia tokens exchanged them for the new BDT tokens. 170 million tokens have been burned and only 10 million remain now. The new goal of the company is to create a trustless environment in which the users are able to make deals via smart contracts or atomic swaps without having to go to a middleman.

This stance of decentralization is important because the company no longer can provide fiat currency because of the Indian government. The exchange does not hold the money of the clients and this helps to reduce the costs and enhance the privacy levels as the funds are not stored in any centralized place at any time.

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BitMEX CEO Calls Ethereum a Shitcoin, Says Ether (ETH) Price Under $100

The second-largest cryptocurrency, Ethereum, was traded as low as $249 on Monday 13 August 2018 and is still down 22 percent over the past seven …
BitMEX CEO Calls Ethereum a Shitcoin, Says Ether (ETH) Price Under $100

THE FORTHCOMING DOWNFALL OF ETHEREUM?

The second-largest cryptocurrency, Ethereum, was traded as low as $249 on Monday 13 August 2018 and is still down 22 percent over the past seven days. It is speculated to plunge to double-digit price levels. Although Ethereum has not suffered from much of a loss compared to the bitcoin value itself, bitcoin is certainly dragging all alt-coins with it at this rate. with the ETH/BTC ratio declining, there is no Ethereum price improvement in sight as of right now. In March, the US Securities and Exchange Commission (SEC) said crypto trading exchanges need to register with the federal agency. This was one of the reasons for the market’s bearish performance.

BitMEX CEO Arthur Hayes argued that Ethereum is a “shitcoin” whose price has been reinforced by initial coin offerings (ICOs) since at least early 2017. Most investments have come from Venture Capital firms (VCs), who he says will eventually succumb to the bear market and dump their ether and ERC-20 tokens at whatever price they can get.

He wrote:

“The VC investor who has never suffered the vagaries of the market is as green as the noob who thinks he or she can go from 1 to 100 Bitcoin in a few trading days. They don’t have the mental strength to cut positions to limit further losses, or backup the truck and buy opportune dips even though they are down. More importantly, LPs can now see an objective last price for a particular token, and can’t be hoodwinked. They will attempt to be a Monday morning quarterback, and that only adds to the VC investors’ anxiety. At a certain point, they go ‘fuck it’, and dump everything they can.”

The sell-off is surmised by some analysts to be the result of ICO-funded startups cashing out their ether, due to the fear of the bear market extending further than many people had initially expected. Hayes argues that it will be VCs who deal the real death-blow since fund managers tend to operate according to a herd mentality.

There are those who believe that a sustainable token economy can exist but no one will be buying at these levels. Will the prices ever go up or will the bloodbath continue, making investors wary?

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Vitalik Buterin Shares State of Ethereum, Blockchain’s Future & Google Job

In The Thoughts Of Vitalik Buterin – The State Of Ethereum, The Future Of Blockchain, And Google’s Attempts To Hire him. One of the earliest stories …
In the Thoughts of Vitalik Buterin - The State of Ethereum, The Future of Blockchain, and Google's Attempts to Hire him

In The Thoughts Of Vitalik Buterin – The State Of Ethereum, The Future Of Blockchain, And Google’s Attempts To Hire him

One of the earliest stories told about Vitalik Buterin, the long-revered creator of Ethereum, was during his time working as a programmer. When working one night, the database was subject to a series of hacking attempts, which threw members of the team into a panic. But with the report from one team member that ‘Vitalik is on it’, what was once a forum in anarchy, suddenly settled into a relaxed regularity.

This goes to demonstrate with what skill Buterin developed Ethereum and continues to be an active presence within the blockchain world. During an event hosted by Berkeley University’s student-run organization, ‘Blockchain at Berkeley’, Buterin shared a number of his thoughts regarding the state of Ethereum, and the future of blockchain technology to a small, but highly attentive congregation.

Among his experiences, Buterin’s fireside chat with Jason Hsu, Software Engineer and ‘Crypto Congressman’, according to Buterin, provided insights into major topics currently facing the crypto community.

“The reason why I hosted the panel with Vitalik is that I believe the industry needs a correction of course, as too much money comes too quickly. I feel too much focus is on the price of crypto and not on executions of projects. I’ve got to know Vitalik for over a year and see him as guardian of Ethereum.”

The conversation also shed light onto the reason for Buterin’s obscure new title for Jason Hsu.

“In fact he gave me the nickname “Crypto Congressman,” which now becomes my mandate in Taiwan’s Parliament. I invited Vitalik for a deep conversation to express his concern and give an update on the development of Ethereum. It’s important to think the force driving cryptocurrency shouldn’t just be money-seeking, but rather we should think how blockchain technology will bring about a fundamental shift in the way our trust system is built, Hsu told me.”

While the conversation with Vitalik was just about to begin, Buterin made it clear that there were a number of aspects that he was focusing on with regard to the Ethereum blokchain, most notably, with its ongoing issues with scaling.

“Recently, I am spending a lot of time working on the proof-of-stake and sharding protocols. This is what the Ethereum research community is focusing on more than anything else at this point.”

The twin issues of scaling and sharding have seen a number of Ethereum Improvement Protocols developed by the community, hit the metaphorical desk both in July and through 2018 as proposed solutions.

Buterin commended the community on its support and commitment in finding solutions to these pressing issues.

“We think that proof-of-stake and scaling are both really important and there has been a lot of progress on improving the algorithms and the development of multiple limitations over the last couple of months.”

One of the other pressing matters which coincides with the current limitations caused by scaling is the issue of transaction fees, something that has come up consistently for a number of developers using the Ethereum blockchain, most notably CryptoKitties.

“I’ve also been looking at the economic analysis of transaction fees and how transaction fee algorithms can be improved to basically cut fees down and make the protocol alignment centers better and more efficient. Those are the main things I’ve been working on myself.”

While there remains a certain amount of friction in gaining momentum around it, Buterin reacted with a great deal of optimism when asked about the Casper protocol.

“I think that there has been a lot of frameworks for state channels coming out recently. The Casper protocol is getting much closer to being finalized at this point. It’s just pending review on academic analysis,” Buterin noted.

Thinking About The Future – Blockchain

While blockchain has enjoyed a remarkable amount of airtime from media outlets, including a spectacular volume of investment for startups using it. One of the biggest problems that it faces is the very real disparity between theoretical and practical application, with the amount of hype-generated uses being far higher than tangible use cases.

“The amount of sustainable usage of blockchain is very low. Although it exists, there are a lot of people giving value to cryptocurrencies, yet the amount of useful stuff happening is still much lower than the $200 billion market cap makes it seem. The main challenge for the industry as I see it is basically understanding how to bridge that gap and get to the point where there is $200 billion in some sense of actual final value being generated.”

While blockchain has obtained a significant amount of press as being a step up for users in terms of security, Buterin reiterates that preserving privacy is something that blockchain has to deal with too.

“Currently, there are no good ways to use blockchain while preserving privacy. There have been good efforts to solve this using Zcash for example, along with research on top of Ethereum. However, there is still a way to go in terms of preserving privacy on the blockchain.”

Blockchain – Talking About My Regulation

The matter of regulations is something that won’t be going away anytime soon, but with each country having their own take on it, it certainly paints a biographical portrait of what each country thinks of blockchain.

Two juxtaposed stances appear to be the United States, which still struggles with finding a clear, legalistic description of blockchain and the various cryptocurrencies that come with it. Meanwhile, Malta has been taking the space by storm with its firm but fair approach, attracting major names like Binance.

Buterin, when asked about regulation, stated that countries should be passing regulatory policy which, while assuring the security of users, should be working towards incentivizing the small-scale use of cryptocurrencies.

“I want to be able to walk into a convenience store, get a card and pay a small fee to start using Bitcoin Cash. Allowing people to use small amounts of cryptocurrency for everyday use is valuable within crypto, and also particularly for use cases of blockchain that go beyond crypto. Even non-financial blockchain use cases still require transaction fees. If we can reduce this friction with one trip to the convenience store, it would be simple to start using cryptocurrency.”

The first step for governments to take on a more friendly approach towards blockchain, which necessitates an understanding of the significance of blockchain for the future.

“One simple use case would be to design national ID cards to sign digital signatures. Another more far-fetched example would be state-issued cryptocurrencies. This would be an interesting way for small counties to put themselves on the map and provide some economic power in the world economy.

Also, on the regulatory side, cryptocurrency exchanges, project fundraising, etc. need to have crypto-friendly regulations. Most importantly, encouraging a strong academic ecosystem is also needed for governments looking to pass regulations.”

A Moment Of Reflection – The State Of Ethereum

There has never really been a dull or news-light moment for Blockchain as an area, but where the amount of buzz, hype, and speculation around blockchain has never really ceased, there’s a lot of curiosity surrounding Ethereum, especially now as we see its overall price fall to a year-low in spite of the constant positive attention.

While Ethereum still dominates the world of smart contracts, and serving as the blockchain of choice for companies looking to start up an Initial Coin Offering, Buterin argues that the concept of an ICO is becoming ‘old and boring’.

Upon reflection, Buterin expresses a significant amount of satisfaction when it comes to the ongoing progress within Ethereum. Particularly, he was satisfied with the progress of both the state and plasma channels.

When it came down to the issue of scalability, Buterin stated that the Ethereum Foundation is currently in the process of authorizing scalable properties, and reaching higher levels of consensus. While the movement toward completing these objectives have been slower than previously anticipated, Buterin points out that this was considered, to him, far better progress than what was possible five years earlier.

“I am seriously looking forward to when the cryptocurrency community basically passes away with proof-of-work.”

Being On The Shortlist – Google Trying To Hire Buterin

While a great volume of highly analytical discussions were held during the extent of the talk with the Berkeley hosted talk, Buterin managed to end the conversations on a very humorous note. One of the best notes being on the time when Google made a concerted effort to hire Buterin for some undisclosed reasons.

“There were rumors a few months ago that Google wanted to hire you. I take it you are in town for your job interview,” Hsu asked Buterin in a comical inquiry.

“I hope we all realize that this was a joke. Some random HR person from Google emailed me, most likely because some machine-learning algorithm analyzed my GitHub and saw that I had some high score in the international Olympiad. Apparently, I fit the blueprints as a great candidate to hire at an intern salary.”

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