Day: July 6, 2021

Ethereum Update to Reduce ETH Supply Likely Coming in August

by Decrypt

In brief

  • The London hard fork includes EIP-1559, which will “burn” some ETH with every transaction.

  • The hard fork had been tentatively slated for mid-July.

The next update to the Ethereum blockchain, which calls for changing how ETH is paid out to miners, is likely to come on August 4 with block 12,965,000—not mid-July as earlier suggested. 

That block number was officially proposed today on Github by developer Tim Beiko, the Ethereum Foundation’s point person on network upgrades. If various Ethereum client teams—the groups who code the various software onramps to the blockchain—agree to the proposal, that target will become official.

The date gives the multiple test networks enough time to finish completing the integration and, hopefully, ensuring there are no problems with the code. An error with the previous hard fork, in April, led to about 12% of computers on the blockchain temporarily being unable to sync to the network.

“We wanted to see how the testnet upgrades went before committing to a mainnet date. Now that two-thirds of testnets have successfully upgraded (last one is tomorrow), we’re confident in setting a date for mainnet,” Beiko told Decrypt via direct message. 

The so-called London hard fork, named after the second-annual Ethereum developer’s conference in 2015, is designed to take the blockchain network into a deflationary future. 

Hard forks such as this one are essentially software upgrades that incorporate Ethereum Improvement Proposals (EIPs), changes to the code that have been put forward by anyone in the community and are then agreed to by stakeholders, including developers and the “miners” who validate and process transactions by running the Ethereum blockchain.

The major component of London is the controversial EIP-1559. Suggested by Ethereum creator Vitalik Buterin and others, it changes the way miners are compensated. Currently, they receive the newly minted ETH that is created with each fresh batch of transactions—plus the transaction fees people pay to use the network. 

Once EIP-1559 is implemented via the London hard fork, however, miners can no longer count on income from transaction fees, though users can still “tip” them to ensure their transactions go through quickly. Users will instead pay a base fee, which goes directly to the network and is burned, or removed from circulation. This results in “deflationary pressure,“ which could increase the asset’s price.

Miners are split on the issue. Some call it “wealth redistribution,” while others see it as a way of boosting the value of the minted ETH they receive. Either way, it’s coming. “Assuming no one has a major objection, we will be going for August 4th,” said Beiko.

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Tether and Stablecoin FUD Overblown, According to Coin Bureau – Here’s Why

by Dailyhodl

The popular crypto analyst and host of Coin Bureau is outlining why he thinks concerns and criticisms surrounding Tether and stablecoins are generally overblown.

In a new video, the pseudonymous analyst who goes by Guy names a few key reasons why Tether and stablecoins pose no significant risk to the crypto industry.

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Tether, the industry’s biggest stablecoin with their USDT token, has been the focus of some skepticism regarding whether or not it’s sufficiently backed. CNBC’s Jim Cramer did multiple segments on Tether and named it as a “weak link” for the crypto markets.

Guy reminds his 1.15 million subscribers that Tether Holdings Limited – the company behind USDT – received an attestation from Moore, a top 20 accounting firm.

“This attestation showed that Tether’s stablecoins were effectively fully backed. There were enough assets in the bank to cover any redemptions. Some people may have taken issue with this as they said it was not a full audit. But then again, none of the other stablecoin issuers had done this either.”

The analyst also addresses the fears of what would happen if China decided to ban Tether. According to Guy, this is a legitimate concern but one that’s ultimately overblown.

“Yes, while a Chinese ban is a risk, I doubt it would have that much of an impact. This mainly comes down to one simple fact. It’s a decentralized stablecoin that’s issued on an open-source platform. You can’t ban it unless you completely shut down your internet, and even then, the moment you switch it back on again, people will start transacting.

So I happen to think that this China FUD narrative is a bit overblown. It was overblown when they banned crypto in 2017 and every year since then. The same can be said for any country that is thinking about banning cryptocurrency and that includes stablecoins.”

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The crypto analyst also points to the fact that many large corporations have integrated stablecoins into their businesses such as Visa, Circle and the top digital asset exchange in the US, Coinbase.

“Firstly, you have to consider the fact that Coinbase has just listed USDT. This is a company that’s listed on the New York Stock Exchange. Do you think they would’ve done it had there been any concerns around Tether? There’s also been mass adoption of these stablecoins and their technology by a number of service and banking companies in the US.”

Guy says that in general, he’s not fearful of the effect that stablecoins could have on the crypto markets, and he remains optimistic about the fact these crypto assets are predominantly based on Ethereum (ETH).

“So unlike most, I do not fear stablecoins. In fact, I’m quite positive about their impact on the market. This is particularly the case when it comes to the networks that these stablecoins are issued on. There are quite a few of them, but the predominant one at the moment is of course Ethereum, and as you guys will no doubt know, I’m bullish on ETH, and I hold it in the largest proportion in my portfolio.”

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Crypto Livewire – Press Releases

  • Former European Commissioner Phil Hogan Joins the Astra Protocol Advisory Board

    July 6, 2021

  • Solrise Finance Raises $3.4 Million for Solana-Based Non-Custodial Asset Management Protocol

    July 6, 2021

  • Investors Lap Up the Adults’ Token NAFTY in Pre-Sale Funding

    July 6, 2021

  • Moma Protocol Trading Opens on Tuesday, July 6th, Followed by IDO on Bounce, WeStarter & IEO on HotBit

    July 6, 2021

  • World’s Leading DeFi and CeFi Aggregator OpenOcean Announces Strategic Investment by Huobi Ventures

    July 5, 2021

  • Alfacash Partners With Coinify To Improve Credit Card Options

    July 5, 2021

  • Ethernity Releases Limited Edition Authenticated NFT in Collaboration With the Associated Press (AP)

    July 4, 2021

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Licensed Iranian crypto miners ordered to halt production ‘altogether’

by Cointelegraph

Eshaq Jahangiri, the first vice president of Iran under Hassan Rouhani, has called on all legally operating crypto miners in the country to stop producing coins.

According to a Wednesday report from the Tasnim News Agency, Jahangiri said at a meeting with officials of the Ministry of Energy that the electricity restrictions for Iranians were likely to continue until early August, purportedly in line Rouhani’s previously announced prohibition on crypto mining. The president said in May that crypto mining would be banned in the country until September in an attempt to converse power during the summer months.

“We will ensure that the electricity will not be cut off in essential and important places,” said Jahangiri. “Licensed miners must also stop production altogether.”

Crypto and Bitcoin (BTC) mining as an industrial activity has been legal in Iran since 2019 as long as the miners are licensed and regulated accordingly. However, many unlicensed miners — some with just a few rigs, one as many as 7,000 — have been illegally tapping into the country’s electric grid, seemingly forcing authorities into raiding homes and shutting down  operations.

Related: Proposed bill in Iran could ban all foreign-mined cryptocurrencies

As the crackdown progresses, Iranians continue to report restrictions on electricity use. Today, Mohammad Shariatmadari, the Minister of Cooperatives, Labour and Social Welfare, said the power was cut off in his home for two hours. Iranian authorities who discover crypto miners using their household’s energy to power rigs may fine the homeowners or seize the equipment.

There has also been a push by some lawmakers to prohibit the use of payments with cryptocurrencies that were not mined within Iran’s borders. Last week, the Iranian Parliament Commission on Economy proposed a bill that would make the country’s central bank the regulatory authority for the exchange of cryptocurrencies in the country and officially place crypto mining under the regulatory purview of the Ministry of Industry, Mine and Trade.