What is Ethereum’s ProgPoW and how is it impacting miners?

The Ethereum ProgPoW could split the Ethereum community down the middle and have significant consequences on the network’s evolution. The new …

The Ethereum ProgPoW could split the Ethereum community down the middle and have significant consequences on the network’s evolution. The new Programmatic Proof-of-Work mining algorithm was agreed on by Ethereum miners and coin owners through an online processing vote. However, now that it is entering an “audit” phase, many parties are debating the wisdom of their decision.

Could the Ethereum ProgPoW force another hard fork in 2019? It’s still too early to make predictions. However, more and more voices are talking about a split – whether the developers implement the new algorithm or not.

What is the Ethereum ProgPoW?

Programmatic Proof-of-Work is nothing more than an extension of the Ethereum algorithm Ethash. The upgrade is meant to help graphics cards become more competitive against ASICs. This way, miners can fight back against centralisation on the blockchain.

Sole miners who don’t have the resources to invest in expensive equipment can still have a chance of making profits from mining.

Why is the Ethereum ProgPoW important?

Since Ethereum was designed as a decentralised network, miners could use their GPUs to validate transactions and add new blocks to the chain.

But when tech companies started producing ASICs (which are more powerful than graphics cards and consume less energy), making profits using GPUs became a lot harder.

An ASIC (Application Specific Integrated Circuit) is specially designed to do one thing only – solve hashing problems and generate new coins.

The new equipment left GPU miners substantially out of pocket. Many of them, in fact, are still struggling to recover their initial investment.

This situation is leading to a loss of interest in maintaining network operations for Ethereum. Miners are moving to other blockchains where they have higher chances of getting rewards.

The domination of ASICs leads to a concentration of power in the hands of a limited number of users who own the right equipment. Decentralisation is therefore at risk. A handful of people could potentially gain control of 51% of the network. That would be enough to manipulate the entire blockchain.

The Ethereum ProgPoW consensus algorithm doesn’t eliminate ASICs. Instead, it brings some balance back to the equation by making them less effective than GPUs. The ProgPoW also aims to prevent a monopoly among equipment manufacturers by reducing the influence of ASIC users on the blockchain.

The principle behind this extension is quite simple. The algorithm uses all components of GPUs to their full extent while changing the problem in mining regularly.

By creating these random sequences of problems, the network requires more flexibility – a characteristic that ASICs don’t have for now. GPUs adapt faster to changes, making them more competitive against ASICs.

An unnecessary diversion from the Proof-of-Stake move?

The problem with ASICs’ domination is not new. The crypto community is split between people who see ASICs as a threat to decentralisation and those who have the resources to invest in expensive equipment to gain higher rewards.

Ethereum is already an “ASIC-resistant” network. And it’s not the first blockchain that would see a hard fork occur as an attempt to render ASICs unprofitable.

However, the adoption of the Proof-of-Stake consensus algorithm is the most effective way of countering ASICs’ domination once and for all. This is why Ethereum developers have been planning a switch to Proof-of-Stake for almost four years.

In this light, the Ethereum ProgPoW seems like an unnecessary diversion since it won’t have significant long-term effects on the network anyway. It’s just a matter of time before tech companies develop new ASICs for mining with Ethereum’s ProgPoW.

What about the audit?

The audit for the Ethereum ProgPoW has raised more controversy in the crypto ecosystem. Miners and coin owners who have already voted for the Programmatic Proof-of-Work algorithm are feeling undermined.

The audit performed by Least Authority (an independent German security consultant) is supposed to buy more time before integrating the extension.

However, there is increasing pressure from influential community members that have spoken against ProgPoW more than once. The audit of the code seems to be just one way in which developers are trying to deal with the criticism.

How the Ethereum ProgPoW could impact miners

Miners are essential for maintaining the blockchain, but loyalty alone doesn’t pay the bills. So, unless mining on Ethereum brings in a profit, many miners will look for more advantageous blockchains.

According to developers, the ProgPoW should balance forces on the network and encourage decentralisation. Miners will have more chances of making profits regardless of their equipment. This should be enough to motivate them to maintain network operations.

On the other hand, ASICs have their benefits, as they have higher hash power per unit of electricity and are more secure. Moreover, many community members don’t see this equipment as a real threat to decentralisation. It would likely take hundreds (or even thousands of ASICs) to control 51% of the Ethereum blockchain.

So how will things end up for Ethereum and its controversial ProgPoW? Will we have another major hard fork in 2019? It’s still too early to make predictions, but like anything in crypto, all bets are off.

The post What is Ethereum’s ProgPoW and how is it impacting miners? appeared first on Coin Rivet.

Related Posts:

  • No Related Posts

The Journey Towards Proof of Stake: Ethereum 2.0 Phase 0 Testnet Released

Prysmatic Labs, an Ethereum development team focused on implementing Ethereum 2.0, including full proof-of-stake and sharding, has launched a …

Prysmatic Labs, an Ethereum development team focused on implementing Ethereum 2.0, including full proof-of-stake and sharding, has launched a public testnet for phase 0 of it.

This is a significant milestone as phase 0 testnet will allow users on the network to stake their ETH and become validators. The testnet is a single client Prysm-only network.

Phase Zero Ready for Testing

Ethereum’s co-founder, Vitalik Buterin, announced back in 2017 that the blockchain would be making a switch from its current Proof of Work (PoW) protocol to Proof of Stake (PoS). Ever since, developers have been working on building the new blockchain called Ethereum 2.0.

On Tuesday, May 7, Prysmatic Labs published a blog post announcing that it has released the phase 0 testnet, an essential milestone for the PoS network. The phase 0 functionality will allow users to stake cryptocurrencies and act as validators in the network while earning rewards in the process.

In the blog post, the team explained that users interested in becoming validators on the network will need to store 3.2 Ether from the Goerli testnet. Storing the coins and acting as validators in the new system would allow them to earn rewards via the staking consensus.

The developers explained that each validator would accrue returns and penalties on the network depending on their behavior. The PoS mechanism is one that promotes liveness, which makes sure that the blockchain can continue even if the majority of validators are offline. However, a validator that is offline for an extended period would cause deposits to be penalized and would see the affected individuals lose funds as a result.

Scalability remains one of the biggest challenges facing the Ethereum blockchain, and PoS would help to improve that. Ethereum 2.0 is being developed with the idea of shards, which are coordinated by the beacon chain. Since phase 0 and Ethereum 2.0 implements this beacon chain, it will have shards which allow horizontal scalability on the blockchain. Thus, transactions can be carried out on the new chain parallel to the current Ethereum PoW network.

Phase Zero Testnet Not Built for a Large Number of Validators

The developers discussed both the current abilities and the hindrances of phase 0. At the moment, Prysm is the only client for the testnet. However, upgrading it to a multi-client system is a critical step the developers would take in the future. Also, the team assured the Ethereum community that the testnet is not a simulation and is publicly accessible.

However, it also has some drawbacks such as the fact that the network is currently not optimized to handle a vast number of validators. Without the super-optimal LMD GHOST fork-choice rule, attestation aggregation, and a few other features, Ethereum 2.0 can only host a limited number of validators at the testnet stage.

The testnet doesn’t have smart contracts or EVM functions yet as those will come when phase 2 of Ethereum 2.0 is launched. The testnet also doesn’t include transfer and withdrawal services, which will come later on the beacon chain.

Vitalik Buterin has been a champion of Ethereum’s move to the PoS protocol. Last month, he proposed that the network should adopt a higher staking reward when the PoS protocol is implemented. According to his proposal, 2,097,152 ETH would be issued annually when 134,217,728 ETH coins are staked. This would ensure that stakers get an annual return of 1.56 percent.

Follow us on Telegram | Twitter | Facebook

Featured Images are from Shutterstock.

Blokt is a leading independent cryptocurrency news outlet that maintains the highest possible professional and ethical journalistic standards.

Related Posts:

  • No Related Posts

What is Ethereum Classic?

Ethereum Classic (ETC) is a fork of Ethereum. Or perhaps Ethereum is a fork of Ethereum Classic… It depends on who you ask and can be a little …

Ethereum Classic (ETC) is a fork of Ethereum. Or perhaps Ethereum is a fork of Ethereum Classic… It depends on who you ask and can be a little confusing.

Either way, the original Ethereum blockchain is now split into two competing versions. One is sitting pretty as the second-largest cryptocurrency by market cap – namely Ethereum. Ethereum Classic has been having a rougher time of it and is currently 18th in the market cap rankings.

Let’s dive a little deeper into what Ethereum Classic is and how it came about.

The creation of Ethereum Classic

Soon after the birth of Ethereum, a new concept was invented. The Decentralised Autonomous Organisation (DAO) was a smashing idea in theory that generated a lot of hype. However, in reality, things did not go to plan.

The DAO was supposed to be used as a fundraising tool for various projects built on Ethereum and was crowdfunded itself in 2016. This was the largest crowdfunding campaign in history at the time.

However, disaster struck the project soon after its release. The open source code had a major bug in the system which a hacker exploited. This resulted in 3.6 million ETH being stolen, equivalent to $50 million at the time. The DAO contained 14% of all circulating Ethereum upon its creation.

The hack caused much debate within the Ethereum community about how to proceed. Should they continue on and learn from their mistakes? Or should they roll back the blockchain, returning the money to the investors whilst also harming the supposed immutability of the blockchain?

Eventually it was decided to roll back the blockchain. However, this decision wasn’t without controversy and did not achieve consensus. Therefore, when the roll back was initiated, several miners continued to mine the original chain, causing a split. This resulted in the creation of two Ethereums: Ethereum and Ethereum Classic.

Unlike the split between Bitcoin and Bitcoin Cash, the fork for Ethereum has been a lot more civil. They have now co-existed together for a few years without the vitriol and competitiveness we have seen from the Bitcoin split.

Backers of Ethereum Classic

There are currently three separate teams supporting ETC. The first and most commonly cited is Ethereum Classic Cooperative. This is a project run by investor and Greyscale CEO Barry Silbert. There have been comments that Ethereum Classic is now Barry Silbert’s cryptocurrency in much the same way Ethereum relies on Vitalik Buterin. However, Silbert claims to have taken a “very hands-off approach”.

The two other teams working on Ethereum Classic are Ethereum Classic Labs and IOHK Ethereum Classic. IOHK is a technology company founded by Cardano creator Charles Hoskinson, so its time is split between the two cryptocurrencies (although it is likely that much of its focus is now on Cardano).

Ethereum Classic Labs is partnered with Barry Silbert’s Digital Currency Group and helps fundraise start-ups and projects on the Ethereum Classic blockchain.

Attack on Ethereum Classic

Earlier in 2019, Coin Rivet reported that ETC was suffering from a 51% attack. Coinbase was the first to spot the attack, stating on its blog: “We detected 12 additional reorganisations that included double spends, totaling 219,500 ETC ($1.1 million).”

Whilst this could have been a disaster from both a PR and security perspective, the reaction was subdued. This was either due to a lack of interest from the market as a whole or a strong belief from the Ethereum Classic community that they would survive and return stronger.

Price history

Ethereum Classic began trading at just under $1 and soon rose to $2.70 in early 2016, before ending the year at $1.60. Like every other cryptocurrency during 2017, the price of Ethereum Classic rose with the rest of the market.

The coin peaked at $47.77 in December 2017, and in January 2018, Barry Silbert released his tweet below when the price was $28.13. Unfortunately for anyone that might have listened to Silbert’s advice, they will have seen ETC succumb to the grip of the bear market as the cryptocurrency now rests at $5.68.

At the same time, Ethereum continues to plug away at a much higher value. ETC never managed to attract the ICO platforms that allowed the Ethereum chain to pump so massively in price, and with the days of ICOs seemingly over, it appears to have missed the boat on this price boosting tactic.

If you’re not watching Ethereum Classic ($ETC), you’re doing it wrong

— Barry Silbert (@barrysilbert) February 12, 2018


Ethereum Classic has struggled to compete with Ethereum since their split. With continued progress being made on Ethereum as well as the rise of other competing blockchains such as Cardano or EOS, the future of ETC appears to be one of struggle.

Should another bull run occur soon though, ETC may cling on and survive a little longer, but it is unlikely to reach mainstream attention.

The post What is Ethereum Classic? appeared first on Coin Rivet.

Related Posts:

  • No Related Posts

Bitcoin’s Software Has Been Rolled Back Before

At the time, however, the inventor of Ethereum, Vitalik Buterin disagreed and said “the incident opens up serious questions about the nature of the …

When Binance lost $40 million to hackers this week, the crypto community discussed reorganizing the chain after it was suggested by a developer from MIT. Many people were upset by this proposition, declaring that there was no way a coordinated effort with miners could be pulled off. However, most bitcoiners don’t seem to remember that a similar centralized decision was made in 2013, when Btc Guild’s hashrate was leveraged to downgrade the main chain from Bitcoin 0.8 to version 0.7.

Also read: Europol Claims New Scalps – Chaos as Darknet Markets are Downed

Crypto Community Outraged Over Reorg Discussion

Cryptocurrency advocates have been all riled up discussing a theoretical reorganization of the Bitcoin Core (BTC) blockchain. The conversation heated up after it was suggested by the developer Jeremy Rubin and Binance CEO Changpeng Zhao (CZ), who mentioned it after his exchange lost $40 million worth of BTC. Some people became extremely upset at the mere discussion of a reorganization and stated that there was no way it was possible. People have argued the subject for hours and have written long-winded posts filled with theories and calculations.

Bitcoin's Software Has Been Rolled Back Before

There are a couple of ways to trigger a blockchain reorganization, which occurs when the chain of recorded blocks is invalidated or orphaned by either a 51% attack or another method, forcing miners back to a point where they have to start again from a specific block height. It’s akin to rolling back a recorded history of transactions and then re-recording them again, but of course the new transactions would never be the same as the ones that were erased. If this technique was used, some believe the history of the Binance transaction which saw the loss of 7,000 BTC would be erased as well.

The Coordinated Effort to Roll Back to Bitcoin Version 0.7 in 2013

After all the discussions on social media concerning centralized entities possibly reorganizing the chain to erase the loss $40 million, it’s interesting to revisit the history books to see if there were any similar events back in the day. In March 2013, Arvind Narayanan described a similar situation where developers coordinated to get a large mining pool to revert the chain to prior software after an accidental fork took place. There was a severe issue with the compatibility between Bitcoin client 0.7 and version 0.8, which caused the main chain to fork into two. In fact, Narayanan detailed that a centralized decision was utilized to help find a solution.

Bitcoin's Software Has Been Rolled Back Before

After the crisis was assessed, BTC developers were introduced with an idea from Btc Guild which wrote: “I can single-handedly put 0.7 back to the majority hash power — I just need confirmation that that’s what should be done,” in a developer chat room. Pieter Wuille responded: “IMHO, that is what you should do, but we should have consensus first.” Narayanan’s paper underlined the centralization factor when he remarked: “So much for decentralization — The fact that Btc Guild can tip the scales here is crucial.”

“The hash power distribution at that time appears to be roughly 2/3 vs 1/3 in favor of the 0.8 branch, and Btc Guild controlled somewhere between 20% and 30% of total hash power,” the researcher noted at the time. “By switching, Btc Guild loses the work they’ve done on 0.8 since the fork started. On the other hand, they are more or less assured that the 0.7 branch will win and the fork will end, so at least their post-downgrade mining power won’t be wasted.”

Bitcoin's Software Has Been Rolled Back Before

Narayanan also stressed that if the hashrate was instead distributed among thousands of small independent miners, it would prove way more difficult to coordinate the effort. The paper describes how Btc Guild sacrificed their mining revenue for the good of the network. The author also hypothesized how developers would be able to convince another large pool operator if Btc guild didn’t believe it would win. After the plan was agreed upon by various developers, the alert notice was sent out which said: “URGENT: chain fork, stop mining on version 0.8.” In addition to the alert, Bitcoin Core developer Pieter Wuille told miners: “If you’re a miner, please do not mine on 0.8 code — Stop, or switch back to 0.7 — Btc Guild is switching to 0.7, so the old chain will get a majority hashrate soon.” After Narayanan summed up the events on how developers and Btc Guild fixed the situation, he explained his opinion that even though it was centralized it was the right decision.

Vitalik Buterin: ‘Incident Brings Forth Uncomfortable Facts About Bitcoin’s Notion of Decentralization’

At the time, however, the inventor of Ethereum, Vitalik Buterin disagreed and said “the incident opens up serious questions about the nature of the Bitcoin protocol and puts into the spotlight some uncomfortable facts about Bitcoin’s notion of ‘decentralization.’” Buterin also emphasized that the other aspect of Bitcoin’s decentralization that this incident called into question was that of mining pools. “The reason why the controlled switch to the 0.7 fork was even possible was that over 70% of the Bitcoin network’s hash power was controlled by a small number of mining pools and ASIC miners, and so the miners could all be individually contacted and convinced to immediately downgrade.”

Bitcoin's Software Has Been Rolled Back Before

So the question is, how does the BTC hashrate distribution look today in comparison to when Btc Guild was a dominant miner back in 2013? Today a 51% coordinated effort would take around five mining pools to work together as each of the dominant BTC pools have 10% or more of the global hashrate. The task would be extraordinarily expensive compared to doing this maneuver in 2013. But so-called experts shouting that a coordinated 51% reorganization couldn’t happen today, especially after a similar instance took place in 2013, are being very naive. Even Buterin concluded in his synopsis of the 2013 situation that people were worried about centralization after it happened.

In an op-ed on March 12, 2013, Buterin pondered: “Some worry, if a centralized core of the Bitcoin community is powerful enough to successfully undertake these emergency measures to set right the Bitcoin blockchain, what else is it powerful enough to do?”

What do you think about the similarities between the 2019 Binance discussion involving a reorganization and the March 2013 rollback? Let us know what you think about this subject in the comments section below.

Image credits: Shutterstock, Blockchain.com, Pixabay, Arvind Narayanan blog Freedom to Tinker, and Twitter.

Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH, and other coins, on our market charts at Bitcoin.com Markets, another original and free service from Bitcoin.com.

Share this story:

Schnorr Signatures Await Bitcoin Cash as the Next Upgrade Draws Near

TECHNOLOGY | 2 days ago

The Bitcoin Cash network is scheduled to fork on May 15 and the community has been steadily preparing for the… read more.

Alternative Bitcoin Cash Full Node Bchd Now Includes Public API

TECHNOLOGY | 6 days ago

On May 3, the developers behind the Bchd project, a Bitcoin Cash full node implementation written in Go (golang), announced… read more.

Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.

Related Posts:

  • No Related Posts

Proof of Work: Binance gets hacked

Emily Pillmore and Stuart Popejoy were interviewed on Hashing It Out to discuss Pact, the smart contract language with built-in Formal Verification …
  • Stellar v11.1.0 is scheduled to be released at the end of the month.

  • Horizon v0.17.6 released this week with minor fixes

  • New Go SDK released, announcement & v1.1 is out.

Izaak from Coda

Coda is the first cryptocurrency protocol with a constant-sized blockchain. Coda compresses the entire blockchain into a tiny snapshot the size of a few tweets using recursive zk-SNARKs.

  • Jiawei has started implementing the stake-voting augmentation to our consensus mechanism. Read the RFC here to learn more about how this makes Coda resilient against long-lasting network partitions.

  • Avery and John have been working on the GraphQL API.

  • Echo fixed a race condition in the transaction pool.

  • Paul worked on implementing thetrust system.

Privacy coins

Paige & Zooko from Zcash

Zcash is a digital currency utilizing zk-SNARKs to enable its privacy-protecting properties.

Mitchell from Monero

Monero is a open-source, privacy-focused cryptocurrency using the ASIC-resistant CryptoNote PoW algorithm. It enforces all privacy features at the protocol level to ensure that all transactions create a single fungible anonymity pool.

Daniel from Grin

Grin is a community-driven implementation of the Mimblewimble protocol that aims to be privacy preserving, scalable, fair, and minimal.

Beni from Beam

Beam is a confidential and scalable cryptocurrency based on Mimblewimble.

  • We will be attending some super cool events during the NYC Blockchain Week 2019, this is here to know all the wheres and whens

  • Have a look on this Atomic Swap Demo done by Beam’s CTO, Alex Romanov

  • R&D Updates

  • We have begun the preparation for the Fork Release

  • Good progress on the Lightning Network POC (Laser Beam)

  • Still a lot to be done when it comes to the integration with Trezor T and to the development of our Atomic Swap Feature #447

  • Work in progress on Bright Boson 2.1 for Desktop and Mobile wallets

  • Work on the Mobile Restore functionality

  • We have begun to develop the following features:

    • Add dialogue window on “Confirm seed phase” screen #132

    • Reference Exchange Rate for Wallet Balance #127

Arnaud from AZTEC Protocol

AZTEC Protocol is an efficient zero-knowledge protocol built on top of Ethereum, making plug-and-play value transmission and asset governance privacy tools for developers and companies.

  • We have submitted an update to EIP-1108, which aims to reduce the gas costs of key opcodes and precompiles used in elliptic curve cryptography. This EIP would benefit a variety of protocols (including Zether, Rollup, Matter Labs and of course AZTEC). For example, an AZTEC transaction would go from ~820k gas to about 197k gas.

  • Our work on a better client side library continues, focussing on making APIs more developer friendly friendly.

  • This week our CTO Zac was on the Zero Knowledge Podcast, talking about range proofs, standards, and privacy on Ethereum.

  • In addition to the two cryptographer roles, we are now hiring for a Senior Solidity Engineer and a Senior Engineer. You can apply here, or by emailing arnaud@aztecprotocol.com with the name of the role as the subject.

Smart contracting platforms

Evan from Ethereum

Ethereum is a decentralized platform for applications that aims to resist fraud, censorship or third-party interference.

Jing from Plasma

Plasma Group is building “Generalized Plasma”, a layer 2 scaling infrastructure for Ethereum that allows for general state transitions on layer 2.

  • Published explainer of the generalized plasma architecture on medium.

  • Prototyped research of offline atomic swaps, allowing for batch defragmentation

  • Cleaned up the last of the research blockers for plasma payments

  • Had a cringey AMA on Youtube Live.

Erik from NEAR

NEAR is a sharded proof-of-stake blockchain.

AJ from Tezos

Tezos is a self-amending blockchain that features formally verified smart contracts, on-chain governance, and a proof-of-stake consensus algorithm which enables all token holders to participate in the network.

Topper from Quorum Control

Quorum Control makes Tupelo, a permissionless proof of stake DLT platform purpose-built to model individual objects that enables flexible public or private data models.

  • Ongoing Production Framework of Tupelo TestNet

  • Infrastructure improvements focused on bootstrapping process for signing nodes

  • Overnight daily performance benchmarking process in development

  • Protobuff conversion of internal type handling – more seamless types between SDKs

  • Read our published post “No Smart Contract Needed: Real Estate on Tupelo

Michael from Loom

Loom Network is a platform for building highly scalable DPoS sidechains to Ethereum, with a focus on large-scale games and social apps.

  • Released DPoS V3.0 — includes multiple delegations per user, redelegations to other validators, merging of reward delegations, referrer rewards for wallets, voting power cap, statistics in preparation for enabling slashing, web3 Json interface now works with block explorers, Go contracts have alpha support via web3, and various bug fixes

  • Launched Trezor support for PlasmaChain staking via Metamask

  • 188M LOOM tokens are now staked on PlasmaChain, which amounts to ~24% of circulating supply

  • Battle Racers is the latest game being built on Loom

Myles from EOS

EOS is a new blockchain architecture designed to enable vertical and horizontal scaling of decentralized applications.

  • The EOS resource exchange (REX) is officially live on the mainnet

  • EOSIO v1.8.0 release candidate published. New features will allow dApps to abstract away blockchain resource management from end-users.

  • Dan Larimer published an idea for a new model for decentralized stablecoins

  • EOS New York put forth a proposal for a new form of blockchain revenue. Read more about it in Greymass’s post here

  • Liberland announced that it will use EOSIO to build various blockchain-based government services

Zaki from Cosmos

The Cosmos Network is a decentralized network of independent, scalable, and interoperable blockchains.

Kate and Dean from Agoric

Founded by pioneers in secure development and distributed systems, Agoric uses a secure subset of JavaScript to enable object capabilities and smart contracts.

  • On our Electronic Rights Transfer Protocol (ERTP) branch, Mark has made some major advances. We’ve split our purse abstraction into ‘purses’ and ‘payments,’ where payments represent digital assets in transit, with the transfer rights locked up. We’ve also added a way to generalize kinds of digital assets (fungible, non-fungible) and valid operations on them. Lastly, our contracts now have a flexible API for representing a particular position in an ongoing smart contract, which can itself be bought and sold. Someone who buys a position in a smart contract can verify with the contract host to see what they would be joining.

  • We implemented a new device model for their “SwingSet” environment, in which external functions are made available as capability-oriented “device nodes”, allowing them to be shared between vats and managed just like normal objects. This will support inter-machine and inter-chain communication links in the next few weeks.

  • We’ve added a “Comms” vat to our SwingSet environment, which is responsible for sending and receiving messages from external machines and translating and relaying them to other vats on the same machine.

Financial Infrastructure

Antonio from dYdX

dYdX is a decentralized exchange for margin trading, borrowing, lending, and eventually derivatives. dYdX allows traders to trustlessly short and get leverage on crypto assets.

  • Just 5 days after our public launch we’re already up to over $2.3M outstanding supply and $800k outstanding borrow on dYdX!

  • Shipping new frontend features: Added tooltips to the app and working on adding trade history

  • Working on adding USDC to dYdX. If you’re interested in lending or borrowing high volumes of USDC please reach out to contact@dydx.exchange

  • Hiring product designers and engineers full-time in SF!

Coulter from MakerDAO

Maker is comprised of a decentralized stablecoin, collateral loans, and community governance.

  • April was extremely eventful for Maker, so if you missed anything, get a recap of all updates, partnerships, and more in our Making Maker blog post.

  • Maker has become an associate founding member of the International Token Standardization Association (ITSA). More info here.

  • On our weekly community call, we demoed a first look at the Multi-Collateral Dai CDP Portal. Coindesk recapped it.

Lazar from MARKET Protocol

MARKET Protocol is a framework for creating tokens that track prices of traditional or digital assets.

  • Completed rewards program UI design

  • Rolled out alerts and notifications using PagerDuty

  • Added MKT:USD rate endpoint to MPX API

  • Integrated new contracts and middleware with MPX admin

  • Refactored MARKET.js in preparation for integration with ethers.js (web3 replacement)

Robert from Compound

Compound is a money market protocol on the Ethereum blockchain — allowing individuals, institutions, and applications to frictionlessly earn interest on or borrow cryptographic assets without having to negotiate with a counterparty or peer.

Layer two and interoperability

Rahul from 0x

0x is an open protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain.

Tony from Liquidity.Network

Liquidity Network is a transfer and swap platform for any token

  • Liquidity Network releases v2 of the mobile app with the following cool features. Details can be found here.

    • Sleek design and cool interface

    • Support for ERC-20 tokens on-chain & off-chain

    • Support for $DAI

    • Improved user experience

    • Hub security checks

  • Integrating the TEX library into the front-end and working on client performances

Dong Mo from Celer

Celer Network is a layer-2 scaling platform that enables fast, easy and secure off-chain transactions for not only payment transactions, but also generalized off-chain smart contracts.

  • We finished new “Backup your wallet” flow and tested Alpha Mainnet OSP config and mobile SDK.

  • We tested game inviting flow, fixed bugs and edge cases.

  • We tested and refined app adaptability for different games from the developer portal.

  • We’ve completed dispute design UI flow for fully decentralized turn-based games and the setup of a new backend stack for Alpha Mainnet Launch.

  • We are in the process of testing and fixing issues found on the new backend.

  • We have Implemented a more robust on-chain event monitoring and support payments with numeric conditions, not only boolean.

Alexandra from Parity Technologies

Parity Technologies builds core blockchain infrastructure, from Parity Ethereum, an Ethereum client, to Polkadot, an interoperable blockchain network.

Application infrastructure

Wes from Theta

Theta is an end-to-end infrastructure for decentralized video streaming.

  • Improved off-chain transaction batching logic, resulting in 80% reduction in redundant/unnecessary on-chain transactions for a given number of concurrent users

  • On the streaming side, introduced new technique of slicing video into smaller segments, improving peering efficiency

  • Completed first monthly distribution of TFUEL for users running the Pre-Guardian Node client

Doug from Livepeer

Livepeer is a decentralized video infrastructure network, dramatically reducing prices for developers and businesses building video streaming applications at scale.

  • Writeup and summary of the DTok, decentralized TikTok, app built by the Stake Capital team on Livepeer.

  • Achieved 99.5% success rate for live video transcoding on the Streamflow test network. Targeting over 99.99% before mainnet upgrade.

  • Shipped “API Node” to create simple REST interface for developers getting started with Livepeer’s upcoming Streamflow release.

Ryan from FOAM

FOAM is building spatial applications and proof of location that bring geospatial data to blockchains and empower a consensus driven map of the world.

  • Highest amount of activity on the FOAM Map yet, this week saw 25+ challenges with active voting. The voting contract increased from 400k tokens to 800k , 1.7m, 2.7m to over 7m tokens.

  • Third weekly scavenger hunt with Blockcities complete, now utilizing an Ethereum logic app running on Microsoft Azure cloud infrastructure for automation.

  • Cartographer Tools Dashboard – Development Preview released

  • FOAM Map Developer Grant program announced! We are excited to see what will be built from this.

  • FOAM at New York Blockchain Week: Find us at Ethereal, Token Summit and ETH New York hackathon happening at the FOAM Offices in the New Lab. We will be hosting workshops, talks and API prizes.


Bowen from Hydro/DDEX.io

Hydro Protocol is an open source framework for building Decentralized Exchanges. DDEX is the first decentralized exchange for Ethereum and ERC-20 tokens built on the Hydro Protocol.

Sam from OpenBazaar

OpenBazaar is an open source project developing a protocol for e-commerce transactions in a fully decentralized marketplace.

  • OpenBazaar version 2.3.3 was released. This release includes one of the most significant UX improvements to date: Listings load almost instantly. We’ve changed how we do IPFS and IPNS calls, as well as added a tiered routing structure, and the result is a huge improvement in loading speed.

  • The infrastructure needed for the social features of the Haven app is now completed, and internal testing of the app is reaching the final states.

China & Asia Updates

Mining 🔨

  • Other than Sparkpool and F2pool, the majority of top Asian PoW mining pools show no interest in staking, due to the current limited TAM (~$6B of total PoS coins) and there is no advantage when competing with exchanges and wallets for stake access

  • After the recent “China Mining Ban”, $BTC hash rate sees a steady growth back to 54E, now less than 10E from ATH 60E

Trading/Exchanges 💰

  • UEX, an Asia based exchange shuts down due to “Business Adjustment”

  • Korea exchange CoinBin (formerly Youbit) filed for bankruptcy with a loss of $26M and a series of scandals involving executive inside jobs and exit scams

  • We are expecting more mid-to-small sized exchanges started in the last cycle to shut down over time

  • A strong signal of the IEO hype dies down is from the recent Binance Launchpad IEO $MATIC: over 58% of the IEO participants won the $MATIC allocation ticket via the lottery system. The previous IEO $CELER saw a lottery win rate of only 1%. The significant decline of the Binance IEO hotness indicates the wave of IEO hype is quickly fading away


Related Posts:

  • No Related Posts