Day: April 3, 2023

Vitalik Buterin Proposes Zero-Knowledge Ethereum Virtual Machines on Ethereum Layer 1

by Blockchain News

Vitalik Buterin, the co-founder of Ethereum, has suggested implementing zero-knowledge Ethereum Virtual Machines (zk-EVMs) on the Ethereum base layer to accelerate the verification process on the blockchain. Buterin’s proposal seeks to solve “The Verge,” a part of the Ethereum roadmap that aims to make verification at the base layer easier.

In a post on March 31, Buterin explained that it is possible to integrate a zk-EVM on the base layer without compromising on decentralization and security. The technology enables Ethereum Virtual Machines to execute smart contracts on the blockchain with ZK proofs. Ethereum was developed with a “multi-client philosophy” to ensure decentralization at the protocol level. By integrating zk-EVMs at the Ethereum layer 1, it would be the third type of client, along with the consensus and execution clients.

Buterin considered the advantages and drawbacks of treating the layer 1 as a “clearinghouse” by pushing almost all activity to layer 2. He concluded that many layer 1-based apps would become “economically nonviable” and that small funds worth a few hundred dollars or less may get “stuck” in the event that gas fees grow too large.

Buterin prefers the zk-EVM approach because it wouldn’t abandon the “multi-client” paradigm, and an open zk-EVM infrastructure would ensure that new clients could be developed, which would further decentralize Ethereum at the base layer. In his post, Buterin explained that zk-EVMs would need to be “open” in that different clients each have different zk-EVM implementations and each client waits for a proof that is compatible with its own implementation before accepting a block as valid.

The implementation of zk-EVMs at the Ethereum layer 1 could cause data inefficiency and latency issues, but Buterin believes these challenges would not be “too hard” to overcome.

In conclusion, Buterin’s proposal for zk-EVMs on the Ethereum base layer seeks to accelerate the verification process while maintaining decentralization and security. The integration of zk-EVMs at the Ethereum layer 1 would be the third type of client and ensure that new clients could be developed, further decentralizing Ethereum at the base layer. The proposal is not without its challenges, but Buterin believes that they can be overcome.

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Bitcoin Liquidity Drops Despite Price Surge

by Blockchain News

Bitcoin (BTC) has seen a significant price surge of 45% in 2023, making it one of the best-performing assets in recent times. However, despite the bullish quarter in terms of price gain, BTC’s liquidity has dropped to a 10-month low. The liquidity dry-up is partly attributed to the ongoing financial crisis in the traditional financial market and regulatory actions against crypto companies.

The current financial crisis has caused several banks to collapse, which has directly impacted the crypto ecosystem. In particular, the collapse of crypto-friendly banks such as Silicon Valley Bank and Signature Bank has removed crucial U.S. dollar payment rails for crypto, leading to a liquidity crisis, especially on U.S. exchanges. This, in turn, has led to increased price volatility, forcing traders to pay more fees in slippage.

Slippage refers to the price difference between the expected price of a transaction and the price at which it is fully executed. For instance, for a $100,000 sell order, the slippage for the BTC/USD pair on Coinbase climbed by 2.5 times at the beginning of March. During the same time frame, Binance’s BTC/USDT pair’s slippage barely moved.

The liquidity crunch has also led to higher price volatility on U.S. exchanges, where the price discrepancy between BTC and U.S. dollar pairs has increased drastically compared with non-U.S. exchanges. For example, the price of BTC on Binance.US is more volatile than the average price across 10 other exchanges.

Conor Ryder, research head of on-chain data analytics firm Kaiko, explained the drastic impact of the liquidity crisis on traders and the market. He noted that stablecoins are replacing U.S. dollar pairs, and although it lessens the impact of U.S. banking troubles, it has an adverse effect on liquidity in the United States. He added that it would indirectly harm investors there.

Despite the regulatory actions taken against crypto companies, the price of Bitcoin has remained relatively strong, outperforming traditional assets such as stocks and bonds, which have seen one of their worst years. However, the liquidity crisis has undoubtedly impacted the market, and it remains to be seen how it will evolve in the coming months.

In conclusion, Bitcoin’s liquidity drop despite its price surge is a concerning development for traders and investors alike. The ongoing financial crisis and regulatory actions against crypto companies have led to a liquidity crunch, causing increased price volatility and higher fees for traders. As the market evolves, it will be interesting to see how BTC’s liquidity and price behave in response to the changing market conditions.

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BitKeep Wallet Surpasses 10 Million Users

by Blockchain News

Decentralized multichain digital wallet solution BitKeep Wallet has announced that it has surpassed 10 million users as of April. The platform has seen tremendous growth in recent months, with over 560,000 new users onboarded in March alone. This growth can be attributed to the success of BitKeep’s campaigns with popular blockchains like Arbitrum and Sui.

The recent Arbitrum campaign was a significant contributor to BitKeep’s surge in user numbers. The campaign involved the successful launch of ARBK, which recorded 708,800 on-chain transactions and was airdropped to over 100,000 users participating in campaign-related tasks and activities. ARBK was exchangeable for ARB, the official native token of the Arbitrum chain, and ranked first on Arbitrum’s ecosystem popularity chart with 150,000 token-holding addresses and an interaction volume of 330,000.

In light of BitKeep’s recent success, cryptocurrency derivatives exchange Bitget has invested $30 million into the platform. As a result of the investment, BitKeep will be rebranded as Bitget Wallet, but will continue to function as an independent entity both operationally and structurally. BitKeep will focus on building its ecosystem and independent tokenomics while protecting the rights and interests of existing BitKeepers and BKB holders during the transition process.

BitKeep Wallet’s success can be attributed to its multichain digital wallet solution, which allows users to manage their digital assets across various blockchains seamlessly. BitKeep currently supports over 20 public chains, including Ethereum, Binance Smart Chain, Polkadot, and more. This versatility has made BitKeep an attractive option for many crypto investors and traders looking for a user-friendly and secure wallet solution.

In addition to its digital wallet offering, BitKeep has also launched BitKeep Defi, a decentralized finance platform that allows users to access a variety of DeFi services, including staking, lending, borrowing, and more. BitKeep Defi aims to create a more accessible and user-friendly DeFi ecosystem, making it easier for everyday users to participate in the world of decentralized finance.

The investment from Bitget will enable BitKeep to continue to innovate and expand its offerings, providing users with even more options for managing their digital assets. The rebranding to Bitget Wallet will also help to solidify BitKeep’s position as a leading player in the digital wallet space, with a focus on providing users with a seamless and secure experience across multiple blockchains.

In conclusion, BitKeep Wallet’s recent announcement of surpassing 10 million users and the investment from Bitget marks a significant milestone for the platform. With its user-friendly multichain digital wallet solution and BitKeep Defi platform, BitKeep is well-positioned to continue its growth and innovation in the crypto space.

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Italy Bans Microsoft-Backed AI Chatbot

by Blockchain News

Italy’s decision to ban the Microsoft-backed AI chatbot, ChatGPT, has caused controversy within the tech industry and the country. The Italian deputy prime minister, Matteo Salvini, criticized the ban as excessive and potentially damaging to national business and innovation.

The ban followed concerns raised by Italy’s national data agency about possible privacy violations and failure to verify the age of users. On Friday, March 31, OpenAI took ChatGPT offline in Italy, making it the first Western country to take measures against the AI chatbot.

Salvini expressed his thoughts on the ban through a post on Instagram, stating that he found the decision of the Privacy Watchdog that forced #ChatGPT to prevent access from Italy disproportionate. He also argued that dozens of services based on artificial intelligence are currently in operation, and therefore, common sense needs to be exercised, as privacy issues concern practically all online services.

Furthermore, Ron Moscona, a partner at the international law firm Dorsey & Whitney and an expert in technology and data privacy, said the ban by the Italian regulators was surprising, as it is unusual to completely ban a service due to a data breach incident.

OpenAI has stated that it adheres to privacy regulations in Europe and is willing to cooperate with Italy’s privacy regulatory body. The company takes measures to minimize personal data when training its AI systems, including ChatGPT, as its goal is for the AI to acquire knowledge about the world, not to obtain information about specific individuals.

While the ban could harm national business and innovation, Salvini hopes that a rapid solution will be found, and ChatGPT’s access to Italy will be restored. “Every technological revolution brings great changes, risks, and opportunities. It is right to control and regulate through international cooperation between regulators and legislators, but it cannot be blocked,” he said.

The AI chatbot is also under scrutiny in other regions worldwide. The Center for Artificial Intelligence and Digital Policy (CAIDP) lodged a complaint against ChatGPT on March 31, intending to prevent the deployment of potent AI systems to the general public. The CAIDP characterized the chatbot as a “biased” and “deceptive” platform that jeopardizes public safety and confidentiality.

In conclusion, the ban on ChatGPT in Italy has created significant controversy within the country and the tech industry. While concerns about privacy and age verification have been raised, the ban has also been criticized as excessive and potentially harmful to national business and innovation. OpenAI has stated that it adheres to privacy regulations in Europe and is willing to cooperate with Italy’s privacy regulatory body. The debate over the regulation of AI chatbots continues worldwide, with concerns about public safety and confidentiality at the forefront.

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Rogue Validator Outsmarts MEV Bots, Resulting in a $25 Million Loss

by Blockchain News

In a recent incident, MEV bots attempting sandwich trades suffered a massive loss of $25 million in digital assets due to a rogue validator. The bots were trying to execute sandwich transactions, which involves intercepting a trader’s transaction to profit from it. However, as the bots began to swap millions, the reverse transactions were replaced by a validator who went rogue, resulting in significant losses.

The losses included $1.8 million in Wrapped Bitcoin (WBTC), $5.2 million in USD Coin (USDC), $3 million in Tether (USDT), $1.7 million in Dai (DAI), and $13.5 million in Wrapped Ether (WETH). At the time of writing, most of the funds had been transferred to three different wallets.

In a Twitter thread, blockchain security firm CertiK explained that the vulnerability was due to the centralization of power with validators. As the MEV bots tried to perform front-run and back-run transactions for profit, the rogue validator swooped in to back-run the MEV’s transaction, resulting in significant losses.

The attack highlights the risks associated with MEV bots, despite their potential to earn vast amounts of digital assets. MEV bots have become increasingly popular in the crypto market, as they can execute complex trading strategies with speed and accuracy. However, they are also vulnerable to hacks and exploits, as seen in previous incidents.

CertiK warned that this attack could affect other MEV searchers conducting strategies such as sandwich trading. The team noted that there is a possibility that MEV searchers may become wary of non-atomical strategies due to this exploit.

The CertiK team emphasized the need for greater decentralization to reduce the vulnerability of validators to such attacks. This incident underscores the importance of blockchain security and the need for continuous monitoring and upgrading of security protocols to prevent such incidents.

In conclusion, the attack on MEV bots attempting sandwich trades by a rogue validator resulted in significant losses of $25 million worth of digital assets. The vulnerability was due to the centralization of power with validators, highlighting the need for greater decentralization to reduce the risks associated with such attacks. This incident underscores the importance of blockchain security and the need for continuous monitoring and upgrading of security protocols to prevent such incidents.

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Browser Extension Reveals Twitter Blue Accounts

by Blockchain News

Twitter users have been able to verify their accounts for a monthly fee since the launch of Twitter Blue in November 2022. This has led to a flood of verified accounts, some of which are associated with spam bots and fake information. The introduction of a Know Your Customer requirement did little to deter trolls from taking advantage of the service.

To address this issue, a browser extension called “Eight Dollars” has been created. It helps users differentiate between accounts that have paid for verification and those that have earned it through the traditional process. For accounts that have paid for verification, the extension displays a “paid” text next to the blue checkmark. For others, it simply shows “verified.”

The extension provides transparency to the Twitter platform and helps identify scam accounts, as evidenced by positive reviews from users. This has been welcomed by users who are concerned about the flood of verified accounts that have made it difficult to identify legitimate accounts.

Elon Musk, the CEO of Tesla and SpaceX, was involved in the launch of Twitter Blue, which was designed to discourage spam bots and fake accounts. However, he and other tech industry leaders recently signed an open letter calling for a halt to the development of artificial intelligence. This has split opinions, with some entrepreneurs, such as Coinbase CEO Brian Armstrong, believing that every technology poses a certain amount of danger, and the goal should be to keep moving forward.

In conclusion, the “Eight Dollars” browser extension provides a useful tool for Twitter users who are concerned about the flood of verified accounts on the platform. It helps distinguish between legitimate accounts and those that have paid for verification, which has reintroduced user doubt. While there are differing opinions on the development of artificial intelligence, transparency on social media platforms is crucial in identifying scam accounts and restoring user trust.

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Astar Network Launches Second Iteration of Smart Contracts

by Blockchain News

Astar Network Launches Second Iteration of Smart Contracts, Supporting Ethereum Virtual Machine and WebAssembly Virtual Machine

Astar Network, a multichain decentralized application (DApp) protocol, has announced the launch of the second iteration of its smart contracts on its mainnet on April 6. This iteration will support both Ethereum Virtual Machine (EVM) and WebAssembly Virtual Machine (WASM VM), and the Astar team claims that having both virtual machines and allowing interactions between the two is a “key success factor” in an emerging layer-1 blockchain.

According to the Astar team, even though the Ethereum network brought about the Web3 revolution through smart contracts, it cannot build the future of blockchain on its own. Therefore, Astar Network is offering an alternative for developers who want to utilize the benefits of both EVM and WASM VM.

To celebrate the launch, the Astar team has invited community members to a panel discussion led by its executives and various Polkadot developers to discuss how WASM can be utilized. The company will also meet with its infrastructure partners who will build the foundations for the WASM environment.

This announcement comes as Ethereum layer-2 scaling solution Polygon has recently released its zkEVM beta to its mainnet, allowing developers to deploy smart contracts at lower costs. Polygon founder Sandeep Nailwal described zero-knowledge (ZK) proofs as the “holy grail of Ethereum scaling.” The release of Polygon’s zkEVM beta and Astar Network’s launch of its second iteration of smart contracts both offer alternative solutions for developers who want to utilize the benefits of Ethereum scaling.

Meanwhile, the Web3 Foundation, the team behind Polkadot, has once again argued that the Polkadot (DOT) token is not a security. On Jan. 26, the firm restated that DOT has already morphed away from being a security and said that the United States Securities and Exchange Commission has welcomed talks with the firm.

In conclusion, Astar Network’s launch of its second iteration of smart contracts that support both EVM and WASM VM offers an alternative solution for developers who want to utilize the benefits of both virtual machines. As the blockchain industry continues to grow and evolve, it is likely that we will see more alternative solutions and protocols emerge to meet the demands of developers and users alike.

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OKX Launches Dias Metaverse Fan Experience

by Blockchain News

Cryptocurrency exchange and Web3 technology developer OKX has been making moves in the metaverse space over the past month, with its latest announcement showcasing its commitment to immersive experiences for fans. The company has launched its first immersive metaverse fan experience as part of its “OKX Collective.”

On April 3, OKX revealed its collaboration with Manchester City footballer Rúben Dias, called “Train Like Dias.” According to the announcement, fans can virtually experience Dias’ favorite training techniques and receive coaching and tips. The experience is open exclusively to fans within the OKX Collective metaverse.

Haider Rafique, the global chief marketing officer at OKX, believes that this new immersive experience will help connect fans and stated that “is another great example of what this technology allows. The possibilities that Web3 can offer are vast and only limited by our own imaginations.”

OKX and Manchester City officially became partners in July 2022, and the platform has hinted at future offerings of Web3-content from other players on the team, including Alex Greenwood, Ilkay Gündoğan, and Jack Grealish.

The metaverse continues to be the next frontier to explore connections between physical reality and Web3 applications, as seen with “Train Like Dias.” However, recent events surrounding metaverse development have been mixed after Disney reportedly scrapped its metaverse division. That came only a week after rumors began circulating that Animoca Brands, a prominent metaverse developer in the space, made cuts of around $200 million to its metaverse fund. Animoca promptly denied those claims.

On the other hand, South Korea launched a “Metaverse Fund” on March 12, intending to accelerate metaverse initiatives within the country. Automotive manufacturer Nissan has also recently filed multiple Web3 trademarks and trialed sales in the metaverse.

OKX’s “Train Like Dias” collaboration is a prime example of the opportunities that the metaverse can offer. It allows fans to connect with their favorite players in a virtual space and experience training techniques that may have previously been inaccessible. The potential for Web3 to create immersive experiences is vast, and OKX’s latest move in the space is a testament to the technology’s capabilities.

Since OKX’s partnership with Manchester City, the company has been working to establish a stronger presence in the metaverse space. The collaboration with Dias is just the first of many future offerings the platform has planned, and fans can expect to see more Web3-content from other players on the team.

However, recent events surrounding metaverse development have been a mixed bag. While South Korea has launched a “Metaverse Fund” to accelerate initiatives in the country, Disney reportedly scrapped its metaverse division, and Animoca Brands was rumored to have made cuts to its metaverse fund. Despite these setbacks, OKX remains committed to exploring the possibilities of Web3 and providing fans with immersive experiences.

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Japan’s FSA Warns Binance and Others for Operating Without Registration

by Blockchain News

Japan’s Financial Services Agency (FSA) has issued a warning letter to several foreign cryptocurrency exchanges, including Binance, Bybit, MEXC Global and Bitget, for conducting business in the country without proper registration, violating the nation’s fund settlement laws. The FSA stated that the listed exchanges had breached Japan’s fund settlement regulations by conducting crypto asset exchange business without proper registration.

This action by the FSA follows a crackdown on unregistered crypto exchanges in the East Asian nation. In 2020, the FSA introduced new regulations requiring crypto exchanges to register with the agency and obtain a license to operate in Japan. However, the regulator clarified that the current list of unregistered traders may not accurately represent the current state of unregistered businesses.

The warning issued to Binance is significant, as it signifies that the cryptocurrency industry in Japan and other nations is facing greater regulatory scrutiny. Unregulated cryptocurrency exchanges pose risks such as fraud, money laundering, and market manipulation, which are concerning regulators more and more.

Although Japan is working on new regulations for the crypto and Web3 sectors, the country has not cracked down on the industry as hard as some other larger economies, such as the United States. However, the FSA’s actions show that it is taking steps to ensure that the cryptocurrency industry in Japan operates within a regulated framework.

Binance, one of the world’s largest cryptocurrency exchanges, has been facing regulatory pressure in various countries. The U.S. Commodity Futures Trading Commission (CFTC) recently sued Binance and its founder, Changpeng Zhao, for regulatory violations. The FSA also issued a formal warning letter to Binance for operating without necessary permissions back in 2021.

In conclusion, the warning letter issued by Japan’s FSA to several foreign cryptocurrency exchanges, including Binance, signifies that the industry is facing greater regulatory scrutiny. As the cryptocurrency industry continues to grow, it is essential for regulators to take steps to ensure that it operates within a regulated framework to mitigate risks and protect investors.

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PancakeSwap Launches V3 with Lower Fees and Enhanced Capital Efficiency

by Blockchain News

Decentralized finance (DeFi) protocol PancakeSwap has launched version 3 of its automated market maker platform on BNB Chain and Ethereum, with the upgrade encompassing performance improvements and lower fees.

PancakeSwap is a popular DeFi platform that enables users to trade cryptocurrencies without intermediaries. It operates as an automated market maker (AMM), meaning that it relies on a smart contract to determine the price of tokens based on the ratio of supply and demand.

One of the key features of PancakeSwap V3 is enhanced capital efficiency. In the previous version of the platform, liquidity from providers (LPs) was distributed uniformly along the price curve of trading pairs. This approach was considered inefficient because assets typically trade within certain price ranges. V3 allows liquidity providers to select a custom price range to provide liquidity, allowing specific control over capital investments to higher volume trading ranges.

Moreover, PancakeSwap V3 features four new trading fee tiers ranging from 0.01% to 1%, which is a change from V2’s standard 0.25%. Every token pair can have liquidity pools for each tier. PancakeSwap expects asset pairs to be drawn to tiers where incentives for LPs and traders align. This approach is an effort to balance between traders targeting the lowest fees while still incentivizing LPs. The higher percentage trading fee tiers cater to assets that have higher impermanent loss or lower liquidity. This mechanism intends to provide more fee revenue and incentive for LPs.

PancakeSwap caters to a broad DeFi user base, accounting for over $2.5 billion of total value locked and serving over 1.5 million unique users. The platform also revealed upcoming features that are still in development, including a trading rewards program incentivizing traders with exclusive benefits, while a position manager feature aims to improve user experience when depositing tokens as liquidity.

In other news, Arbitrum (ARB) has been in the spotlight in March, with its highly-anticipated airdrop consolidating around $3.3 million from over 1,400 addresses into two controlling wallets. Arbitrum is a layer-2 scaling solution for Ethereum that aims to improve its scalability and lower its transaction fees. Its airdrop has generated significant interest from DeFi enthusiasts who are looking for new opportunities to earn rewards.

In summary, PancakeSwap V3 is a significant upgrade that aims to improve capital efficiency and lower trading fees. It also features four new trading fee tiers that cater to different types of assets and traders. With over 1.5 million unique users and more upcoming features in development, PancakeSwap is likely to remain a popular DeFi platform.

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Bitcoin (BTC) $ 26,272.04 0.41%
Ethereum (ETH) $ 1,603.92 1.20%
Litecoin (LTC) $ 63.76 0.35%
Bitcoin Cash (BCH) $ 228.44 7.69%