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.

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NextBlock, OSC seek settlement for misleading disclosure allegations

Among the purported investors included Kathryn Haun (federal prosecutor), Vinny Lingham (Civic CEO), Karen Gifford and Vitalik Buterin, who were …

The Ontario Securities Commission (OSC), NextBlock Global Limited, a venture capital company, and NextBlock’s CEO, Alex Tapscott recently filed for a public settlement hearing according to the filing dated May 9.

According to a statement of allegations released Thursday morning, Tapscott and NextBlock Global Ltd. were accused of making “untrue and misleading” representations in presentation slides offered to over 100 prospective investors in a private placement that raised $20-million in July 2017.

Reportedly, Investors were shown slide decks that falsely portrayed various well-known figures in the blockchain industry as NextBlock advisors. Among the purported investors included Kathryn Haun (federal prosecutor), Vinny Lingham (Civic CEO), Karen Gifford and Vitalik Buterin, who were pictured in the investor slide decks. Additionally, NextBlock did not inform these individuals that they were being purported as advisors to the project.

A source in both the traditional investment and blockchain communities in Canada said, “You don’t know how many people I know who run hedge funds told me they were investing [in NextBlock] because he had someone from Coinbase involved.”

To defended himself, Tapscott said, “This is all so ridiculous because I’m not raising money on the back of these advisors.”

At the end of 2017, Forbes revealed the investor slide debacle and forced Tapscott to refund Nextblock investors. The company was forced to abandon its plans for a public listing on the Toronto Stock Exchange. Tapscott stated:

“Today we announced that NextBlock Global would not be proceeding with a go-public transaction. After careful consideration, we have concluded that the best course of action is to return to existing investors their capital in full and also to have them participate in any profits. As a young company, we have stumbled in our efforts to take our company public, and we will work hard to rebuild the trust of those we have disappointed.”

In the expose, the purported advisors denied being Nextblock’s advisors.

In April this year, Tapscott, Nextblock Global and the OSC entered into a preliminary settlement agreement over the matter. There is an upcoming May 13 hearing that will determine whether the OSC will approve the agreement reached between the staff of the commission and Nextblock.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

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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

Conclusion

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.

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Craig Wright Aka “The Self-Proclaimed Satoshi Nakamoto” Submits Bitcoin Addresses

The man is claiming to be the inventor of Bitcoin and his latest moves involved sending legal notices to Ethereum’s founder Vitalik Buterin and …

You may recall that not too long ago, we reported that the whole crypto space seems to be having enough of Craig Wright’s speculation and major exchanges have begun delisting his token, BSV.

The man is claiming to be the inventor of Bitcoin and his latest moves involved sending legal notices to Ethereum’s founder Vitalik Buterin and podcaster Peter McCormack, according to the online magazine Investinblockchain.

The man threatened them with lawsuits for libel and defamation.

Wright submitted a list of BTC addresses

Following an order issued by the US District Court of the Southern District of Florida, the self-proclaimed creator of Bitcoin, Wright has submitted a list of BTC addresses that are associated with a blind trust.

More in-depth analysis could prove whether or not Wright really is Satoshi Nakamoto, the creator of Bitcoin, as he’s been claiming to be for quite a while now.

Wright is involved in an ongoing court battle against the estate of his former business partner Dave Kleiman, the Tokyo-based Bitcoin researcher and software developer Kim Nillson of WizSec said that the redacted addresses are “not hard to guess,” as reported by the Daily Hodl.

Instead, he claims that “Wright just scraped the blockchain for early block reward beneficiaries and claimed those.”

WizSec says that if you “Take the list of the first 70 block reward addresses (excluding the Genesis block) and they line up perfectly with Wright’s redacted list. We can even make educated guesses for the other redacted text by typing up candidate text in a word processor with matched formatting and checking whether it lines up with the original document.”

There are no cryptographic signatures to support ownership

WizSec continues and says “What Wright does provide appears to be just a lazy copy-paste from the blockchain, without any cryptographic signatures to support his claims of ownership.”

So, it seems that things are not exactly going the way Wright was hoping. We’ll keep you posted on the subject.

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Andreas Townsend

Andreas Townsend Author

I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.