Ethereum scalability, points of sale in Venezuela and Peercoin anniversary

With CryptoNoticias Latin Americans can keep up to date on changes in the market prices of bitcoin, ether, bitcoin cash and Litecoin relative to their …

During the week from August 19 to 25, the price of bitcoin (BTC) moved around USD 10,500, with some peaks exceeding USD 10,850, according to CoinMarketCap data. At the time of writing of this note its value is USD 10,340, according to the same portal.

Information about the week includes statements by Vitalik Buterin, founder of Ethereum, who concerned about the issue of scalability raised the idea of developing networks “where every computer on average verifies only a small portion of the transactions’. For him, this would allow for more efficient work with a “pretty modest” sacrifice of network security.

With CryptoNoticias Latin Americans can keep up to date on changes in the market prices of bitcoin, ether, bitcoin cash and Litecoin relative to their local currency. To do this, they can visit the Latin Market section, which has a price calculator to perform conversions quickly and easily.

Among other information, it was also of interest this week that the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned three Chinese citizens, alleging that they violated money laundering laws and drug smuggling. The cryptocurrency addresses of these citizens were added to the OFAC blacklist. This is the second time the agency has specifically sanctioned cryptocurrency addresses, having last done this in November 2018, with a couple of Iranian citizens.

Here are the highlights:

Ethereum developer and founder Vitalik Buterin expressed concern about the future of the network, especially the scalability issues. This is recorded by an interview given by Buterin to the Canadian medium The Star, published on August 19. The co-founder and one of the most representative figures in the Ethereum ecosystem stated that the blockchain is “almost full”.

The Panda Group team announced the activation of cryptocurrency outlets in Venezuela. The company’s CTO, Typson Sanchez, said that in early August they installed a point of sale (PandaBTM) in Merida state. Users have several options, being able to use bitcoin (BTC), bitcoin cash (BCH), DAI and DASH. In the coming months, they hope to integrate more crypto-actives, namely ETH, ZEN and BNB.

This August 19 marked the seventh year of the launch of the first cryptocurrency to implement a proof of participation, in English Proof of Stake (PoS), as part of its consensus protocol. It is Peercoin (PCC), crypto active with a hybrid consensus system, which activated its main network in 2012. According to the official website of Peercoin, a blockchain pioneer in the use of the PoS protocol, its creators sought to secure the network using a “valuable resource and scarce as time”.

Pieter Wuille, one of the most prominent developers of the Bitcoin ecosystem, presented a programming language proposal for the network. This is “Miniscript”. This language could make it easier to write smart contracts on the Bitcoin network. Wuille himself submitted the proposal through Bitcoin’s developer mailing list and made it public on his Twitter.

A report published by data analytics firm Coin Metrics suggests that the correlation between the price of bitcoin and the rest of the cryptocurrencies increases in short periods. The analysis illustrates the correlation between the market’s major cryptocurrencies over the past week when the price of bitcoin declined modestly. In that period, price indices behaved as a single asset, all moving in the same direction.

Also:

A prolonged storm in Sichuan, China’s province, caused landslides and mudslides, forcing some local hydropower plants and Bitcoin miners to halt their operations. According to the government’s social media outlets, heavy rains have been soaking up the mountainous Prefecture of Aba in Sichuan since Monday, with landslides now affecting 17 counties in the area.

A donation of about $100,000 to help stop the fire that currently ravaged the Amazon was rejected by BitPay’s bitcoin payment platform. The process was halted for being a “very high” amount. This was stated by the Amazon Watch environmental care initiative, the recipient of the donation, via Twitter on August 22.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned three Chinese citizens, claiming they violated money laundering and drug smuggling laws. The sanctions involve several cryptocurrency addresses allegedly linked to the illegal activities of these individuals.

If you want to know the meaning of several words of the terminology of the crypto world, you can consult them in the extensive Glossary of CryptoNews.

API (Application Programming Interface): A set of functions, procedures, and subroutines used for application software development. Developers benefit from the functions of a specific API to avoid having to program the entire application from the beginning.

CryptoTuto of the Week

Lightning Wallet is a Lightning Network wallet that works without custodians. Although it is not necessary to operate a network node to use it, neither the developers nor the operators of this wallet have control over the funds of the users. The following CryptoNews video shows, step by step, how to use it.

About Post Author

Miu Lin

Miu is a journalism major and has been writing as a business journalist for various dailies before joining OBN. She currently writes about blockchain, cryptocurrencies and business news.

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NEO Foundation Inks Partnership with Major Japanese Blockchain Investment Fund

According to a recent press release, NEO Foundation has recently signed a deal with Blockchain venture fund Gumi Cryptos to propel its expansion …

According to a recent press release, NEO Foundation has recently signed a deal with Blockchain venture fund Gumi Cryptos to propel its expansion into the Japanese market. The is a win-win partnership for both of these organizations given that they have vested interest in propelling the adoption of the disruptive technology.

NEO, or China’s Ethereum, is considered to be one of the leading smart contract platforms. The NEP-5 protocol allows different tokens to piggyback of its Blockchain. NEO is yet to make the same impact as Ethereum, but its underlying technology holds a lot of promise.

The fund, which is owned by Tokyo-based game publisher Gumi, specifically invests in cryptocurrency-related businesses. Gumi Cryptos makes it easier for established cryptocurrency businesses to understand and access the Japanese market.

As a key blockchain infrastructure, NEO is partnering with gumi to leverage the latter’s leading edge in the gaming sector to move towards a more diverse and optimized Internet era,” says NEO Founder Da Hongfei.

It is worth noting that Japan became the very first country to legalize Bitcoin, which makes it a pivotal market for crypto businesses. The Japanese yen (JPY) is also the second most traded fiat currency against BTC after the US Dollar.

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Vitalik Buterin Says Ethereum Is No Longer Scalable

According to co-founder Vitalik Buterin, the second-largest cryptocurrency by market cap and the number one competitor to bitcoin is heading in that …

Is Ethereum no longer scalable? According to co-founder Vitalik Buterin, the second-largest cryptocurrency by market cap and the number one competitor to bitcoin is heading in that direction.

Buterin Offers His Take on Ethereum

In a recent interview, Vitalik explained some of the problems he’s encountered as of late with Ethereum’s blockchain, the first being that it’s “almost full.” He also says that Ethereum is among the more expensive types of blockchain technology for businesses looking to build within its network.

This, combined with its lagging scalability as of late, is what’s causing Ethereum to lose out. Many new crypto businesses are unable to garner a spot in the Ethereum network and utilize its properties for business management.

Speaking with the Canadian news outlet The Star, Buterin explains:

Scalability is a big bottleneck because the Ethereum blockchain is almost full. If you’re a bigger organization, the calculus is that if we join, it will not only be extremely full, but we will be competing with everyone [else] for transaction space… There is pressure keeping people from joining, but improvements in scalability can do a lot in improving that.

One of the big issues surrounding bitcoin and other forms of cryptocurrency is regulation. Digital currencies have often sought to prevent major banks and government agencies from controlling them or having a hand in how individuals utilize them. Buterin, on the other hand, sees things very differently. He says that governments should have a say in how cryptocurrencies operate and thinks they can have great power in determining how well the space moves from here.

Among the steps governments can take to ensure cryptocurrencies are safe and properly utilized are regulating initial coin offerings (ICOs) and appropriately deciding which currencies should be classified as securities.

Among the recent tech hubs to become “more comfortable” working with blockchain technology is Microsoft, according to Buterin. The company recently created a system for managing digital identities. Buterin states:

I go and talk to companies and governments quite a bit and institutions are increasingly warming up to public chains. Microsoft would be an example. In some cases, banks. I’m not aware of Canadian banks that are doing active applications on blockchains. I know that historically [Royal Bank of Canada] has had some interest.

Time for Some Solid Change

One of the biggest problems affecting Ethereum, according to its co-founder, is its structure. Right now, that structure is based more on a proof-of-work concept, whereas Buterin believes it could benefit more through a proof-of-stake system. This transition is currently underway, and he says:

The problem with the current blockchain is this idea that every computer has to verify every transaction. If we can move to networks where every computer on average verifies only a small portion of transactions, then it can be done better.

Tags: bitcoin, blockchain, Ethereum, vitalik buterin

Ethereum Facing Scalability Dilemma and the Blockchain is Almost Full

Ethereum co-founder Vitalik Buterin openly admitted that the Ethereum blockchain is currently facing a scalability dilemma. In an interview with The …

Ethereum co-founder Vitalik Buterin openly admitted that the Ethereum blockchain is currently facing a scalability dilemma.

In an interview with The Star, Buterin stated that the Ethereum blockchain is full. Big organizations that want to build on the network have to either wait for scalable solutions or contend with high transaction fees.

“Scalability is a big bottleneck because the Ethereum blockchain is almost full. If you’re a bigger organization, the calculus is that if we join, it will not only be more full but we will be competing with everyone for transaction space. It’s already expensive and it will be even five times more expensive because of us. There is pressure keeping people from joining.”

This, according to him, represents the biggest hurdle for cryptocurrency adoption. One of the solutions put forth by Buterin is to move away from the requirement that every node in the network has to verify each transaction, to a model where verification is done on a portion of transactions on the network.

According to Buterin, this would bring down costs 100-fold, massively improving the scalability of the Ethereum blockchain and enabling higher transaction speeds. The only drawdown is that the security of the network has to be sacrificed, although Buterin claims it would be minimally impacted.

When asked about other roadblocks cryptocurrencies in general face on the road to mainstream adoption, the co-founder highlighted that there are still issues with usability, privacy and account security. While Buterin believes the technology is there or thereabouts in development, it still has to reach the point when people use it en masse.

Recently, Buterin argued that the future of the cryptocurrency industry will be shared among several networks and will bring interoperable solutions between blockchains. In July, Buterin had entertained the thought of using the Bitcoin Cash (BCH) blockchain as a temporary scalability solution for the Ethereum network.

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Ethereum falls below $200 in market decline

Ethereum has fallen below $200 again after losing 6.39 percent of its value in the last 24 hours. ETH now sits at just $184.53, rapidly closing in on its …

Ethereum has fallen below $200 again after losing 6.39 percent of its value in the last 24 hours. ETH now sits at just $184.53, rapidly closing in on its lowest value in over three months.

Although the bulk of the cryptocurrency market is in the red, Ethereum is performing worse than most, currently down more than any other top-five cryptocurrency. Despite this, according to crypto analytics company IntoTheBlock, the number of long-term holders has increased in the last month, up five percent in the last 30 days. But its slim pickings.

Ethereum’s value has weakened against Bitcoin over the last three months, collapsing from 0.0336 BTC to just 0.0184 BTC today—a loss of more than 45 percent. It appears that as the market turned down, altcoin investors began turning to Bitcoin, or left the market completely.

The bearish price action comes as Etheruem prepares for the first part of its upcoming network upgrade, termed “Instanbul.” The initial changes will improve the efficiency of the Ethereum blockchain, while laying the groundwork for further upgrades. Down the line, Istanbul will also include a change to the mining algorithm known as ProgPow, which is expected to make ether mining more balanced, and hence improve miner turnout—but it’s not without controversy.

The upgrade is also the first step towards Ethereum 2.0, the project’s ambitious plans to become more scalable on the base layer, without needing layer two scaling solutions. Which is probably for the best; Ethereum co-founder Vitalik Buterin tweeted earlier today that layer two solutions are much harder to build than it was initially thought. So, Ethereum 2.0 can’t come quickly enough.

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