Zero-knowledge (ZK) proof solutions have played a crucial role in the Ethereum ecosystem’s scalability, but Consensys’ zkEVM Linea head, Nicolas Liochon, anticipates that proto-danksharding will bring about a significant reduction in rollup costs.
During Korea Blockchain Week, in an exclusive conversation with Cointelegraph Magazine editor Andrew Fenton, Liochon projected that proto-danksharding, also known as Ethereum Improvement Proposal (EIP) EIP-4844, could potentially slash rollup costs by tenfold.
EIP-4844 aims to address the cost issues associated with rollups, a technology that aggregates transactions and data off-chain while providing computational proof to the Ethereum blockchain.
However, the Ethereum Foundation has yet to announce a specific launch date for proto-danksharding, as development and testing continue.
Liochon explained that Linea already offers transactions 15 times cheaper than Ethereum’s layer 1, but rollups are constrained because transactions are posted in call data within Ethereum blocks.
According to Ethereum’s documentation, rollups remain expensive due to the fact that all Ethereum nodes process call data, which is stored on-chain indefinitely, despite its short-term relevance.
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EIP-4844 introduces data blocks that can be sent and attached to Ethereum blocks, with the data stored within these blocks inaccessible to the Ethereum Virtual Machine, and set to be deleted after a specified timeframe.
This innovation is expected to substantially reduce transaction costs, addressing the core issue of data availability, which accounts for 95% of rollup costs.
Liochon emphasized that Linea’s prover, responsible for off-chain computation, verification, bundling, and cryptographic proof generation for combined transactions, comprises only a fifth of the overall cost.
This highlights the significant challenge in making ZK-rollups the preferred scaling solution for Ethereum over alternatives like Optimistic Rollups.
Furthermore, Linea aspires to be a versatile ZK-rollup suitable for various decentralized applications and solutions within the Ethereum ecosystem, catering to DeFi, gaming, and social applications.
Consensys successfully launched Linea in August 2023, with more than 150 partners onboarded and over $26 million in Ether bridged, as previously reported by Cointelegraph.
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Bitcoin extended its decline following the Wall Street opening on September 1, as losses from the monthly close persisted.
Cointelegraph Markets Pro and TradingView data tracked the dwindling BTC price performance, which hit its lowest point since August 22.
The downward momentum was fueled by Bitcoin bears capitalizing on the August monthly close, causing significant volatility in both the Bitcoin and cryptocurrency markets throughout the night.
Overall, BTC/USD saw an 11.2% decline in August, leaving little room for optimism about a potential rebound in September, as noted by market experts.
Prominent trader and analyst Rekt Capital shared insights on Bitcoin’s potential future actions in his recent YouTube update.
He highlighted that BTC price was unable to sustain gains attributed to the “Grayscale hype,” with substantial selling pressure and a drop in the weekly relative strength index (RSI) values toward a crucial upward trendline.
Several exponential moving averages (EMAs), previously acting as support, had now switched roles to become resistance.
The long-standing trendline that had held for over a year was at risk, and a breach of the RSI trendline could result in further downward movement, according to Rekt Capital.
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He identified potential price targets for a new decline, ranging on the path toward $23,000, a favored level among traders.
Referring to historical norms and insights from on-chain monitoring resource CoinGlass, he estimated losses of approximately 7% to 13% for September.
In the event of a relief rally, Rekt Capital suggested that the rally might peak at around $27,200, a level that had previously served as a support zone.
However, Bitcoin’s performance was hindered by the U.S. Dollar Index’s (DXY) second consecutive day of robust strength.
The DXY, which stood above 104 at the time of writing, had recovered from recent losses and was expected to continue its upward trajectory that began in mid-July.
The DXY’s strength had previously acted as resistance during a retest in August, following a local high in June.
Market participants were divided over the current influence of the DXY’s strength in suppressing BTC price, as the inverse correlation between the two had been repeatedly challenged over the past year.
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The crypto community has united in solidarity with the Maui community, rallying behind a relief fund endorsed by renowned celebrities Oprah Winfrey and Dwayne “The Rock” Johnson, which now accepts contributions in various cryptocurrencies.
During the initial days of August in 2023, the serene Hawaiian island of Maui was engulfed in destructive wildfires, inflicting considerable damage to both properties and lives as a staggering 2,500 acres were consumed by the blaze.
In response, The Rock and Oprah jointly inaugurated the People’s Fund of Maui, a charitable initiative designed to extend direct financial assistance to those grappling with the aftermath of the disaster.
In a tweet, The Rock unequivocally affirmed that the entirety of the donations would be channeled towards the victims.
He elaborated, “Each adult resident residing within the impacted regions of Lahaina and Kula, displaced by the ferocious wildfires, will be eligible to receive $1200 per month.
This endeavor aims to facilitate their journey towards recovery.”
The People’s Fund of Maui demonstrates its versatility by welcoming donations not only in traditional fiat currencies but also in an array of cryptocurrencies.
Bitcoin, Ether, and Dogecoin are just a few examples of the digital alternatives that can be contributed to the fund.
Beyond merely global fiat donations, the fund’s scope encompasses these digital assets, creating a diverse range of avenues for individuals to provide their support.
Oprah elucidated that the rationale behind placing the donations directly in the hands of the survivors is to empower them to chart their own course towards normalization.
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She expounded, “Empowering individuals to exercise their autonomy, enabling them to determine their requirements and those of their families, constitutes the cornerstone of our objective.”
Running parallel to the commendable efforts initiated by these A-list celebrities, multiple relief initiatives are diligently endeavoring to ameliorate the predicament faced by the wildfire victims.
The All Hands and Hearts disaster relief organization has been at the forefront of collecting both cryptocurrency and fiat donations to assist the local denizens of Maui as they grapple with the aftermath of the devastating fires.
Olga Ruggiero, Chief of Organizational Integration and Events at All Hands and Hearts, emphasized the significance of cryptocurrency contributions, asserting that they are a vital means of offering essential support in the aftermath of such catastrophic events.
She noted, “Cryptocurrency, much like any other form of donation, plays a pivotal role in rendering indispensable aid after the ravages of wildfires.
The crypto industry consistently rallies alongside communities across the globe that find themselves in distress.”
The unity displayed by the crypto community in partnership with influential personalities like Oprah Winfrey and Dwayne “The Rock” Johnson serves as a testament to the potential of leveraging cryptocurrencies to extend a helping hand to communities in dire need.
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The United States may be poised for a resurgence in the cryptocurrency sector, as recent court rulings appear to be reining in the Securities and Exchange Commission (SEC), according to a digital asset attorney from K&L Gates.
Jeremy McLaughlin, a partner at the international law firm, highlighted the trend during his participation in the Intersekt23 conference in Melbourne on August 31.
McLaughlin noted that a series of U.S. court cases have challenged SEC Chair Gary Gensler’s stance that nearly all digital assets should be classified as securities.
He explained that while initial crypto regulations were primarily established at the state level and relatively straightforward, the involvement of federal bodies like the SEC and the Commodity Futures Trading Commission led to increased market restrictions.
The attorney pointed out that due to the SEC’s aggressive approach, many tokens were delisted, and some companies even exited the U.S. market.
However, recent court decisions have begun to curtail the SEC’s assertiveness, rekindling optimism within the industry.
Recent examples of the SEC facing setbacks include its loss in a lawsuit brought by a crypto firm and a separate case where a crypto firm prevailed against the SEC.
A noteworthy instance occurred on August 29 when a U.S. District Court judge ruled against the SEC’s denial of Grayscale Investments’ application to convert its flagship Bitcoin fund into an exchange-traded fund.
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Similarly, a judge ruled in July that Ripple Labs’ XRP was not a security when sold to retail traders, leading to a partial loss for the SEC.
Despite these developments, McLaughlin acknowledged the challenges of providing legal advice in such a rapidly evolving landscape and lamented the lack of clear guidance for clients.
However, he expressed optimism that the chaos in crypto regulation was subsiding as court decisions increasingly favored the digital asset industry.
Regarding Australia’s crypto legislation, panelists at the conference discussed its comparative state.
Effie Dimitropoulos, Chief of payment services firm Novatti, described Australia’s regulations as “lagging” in comparison to new frameworks in Hong Kong and the European Union.
She highlighted the uncertainty faced by local crypto businesses due to the evolving legal landscape, resulting in the potential obsolescence of legal advice.
Dimitropoulos further emphasized the need for clear resolutions from regulatory bodies such as the Australian Securities and Investments Commission and the Treasurer to alleviate the ongoing uncertainty.
In conclusion, the U.S. crypto industry is showing signs of renewal as court rulings moderate the SEC’s regulatory zeal, while Australia’s crypto regulations are criticized for falling behind international standards.
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The Cambridge Bitcoin Electricity Consumption Index (CBECI), renowned for assessing Bitcoin’s energy usage, has undergone its inaugural methodology update since its inception in 2019.
Launched in July 2019, CBECI aimed to furnish data-backed insights into Bitcoin mining’s energy intensity and environmental consequences.
In an exclusive conversation with Cointelegraph, lead researcher Alexander Neumueller outlined the index’s role in estimating Bitcoin network electricity consumption.
Neumueller emphasized its role in presenting comprehensible data to the general public.
The revamped methodology accentuates recent trends in Bitcoin mining hardware and hash rates. Researchers scrutinized whether CBECI accurately depicted these dynamics.
They concentrated on unraveling the causes behind significant hash rate growth in recent years, attributed to more powerful contemporary mining equipment superseding older counterparts.
The absence of detailed hardware data posed a challenge, limiting CBECI’s precision in assessing hardware variety and prevalence.
To surmount this, researchers devised a simulation that approximates daily hardware distribution, utilizing performance and power data from actual hardware.
The prior methodology presumed that all profitable hardware models released in the last five years contributed equally to the network hash rate.
This inadvertently led to an overrepresentation of aging hardware during lucrative mining periods.
The team recognized the overrepresentation of older equipment and the underrepresentation of newer models.
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This realization spurred the methodology’s alteration.
Neumueller’s team then cross-referenced hash rate increments with US import data on recent Bitcoin mining hardware.
Public sales data from mining hardware manufacturer Canaan supplemented this analysis.
The CBECI encompassed diverse data points and visualizations, encompassing Bitcoin network power demand, a mining map depicting hash rate distribution, and a greenhouse gas emissions index.
These indexes yield three distinct estimates for each sector, providing a range for these metrics.
The broader discussion encompassed varying viewpoints on Bitcoin’s environmental impact.
Critics alleged Bitcoin undermined ecological progress, while proponents contended that the mining industry could aid environmental efforts.
Neumueller highlighted the intricate nature of the field and the dearth of information, enabling selective data interpretation and biases.
In sum, CBECI’s revamped methodology aligns with evolving Bitcoin mining hardware trends, rectifying previous discrepancies.
The index’s comprehensive insights and visuals offer a multifaceted perspective on Bitcoin’s energy consumption and emissions impact.
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Binance, a prominent cryptocurrency exchange, has released a statement urging its users to transition their holdings of the Binance USD (BUSD) stablecoin into alternative assets, including a newly introduced stablecoin.
This move comes as part of Binance’s strategy to gradually phase out its support for BUSD, with plans to conclude this process by February 2024.
The decision aligns with Paxos’ intention to cease BUSD redemption around the same time.
This statement marks Binance’s first official acknowledgment of the matter, following reports from several users who shared images of a notification on their mobile app detailing the forthcoming discontinuation of BUSD support.
In an effort to facilitate this transition, Binance is actively encouraging users to engage in trading or converting their BUSD balances into First Digital USD (FDUSD), a stablecoin unveiled by the Hong Kong-based trust company First Digital Group in June. Notably, FDUSD made its debut listing on the Binance exchange in late July.
Binance highlights that conversions and trades involving BUSD and FDUSD will be exempt from fees.
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As of August 30, Binance has also removed eight BUSD trading pairs.
Additionally, Binance had previously incentivized BUSD use by offering fee-free trading pairs for FDUSD paired with Bitcoin and Ether.
The decision to discontinue BUSD support by Binance appears to be a response to actions taken by regulatory authorities.
Specifically, on February 13, the United States Securities and Exchange Commission (SEC) issued a wells notice alleging that BUSD was an unregistered security.
This notice was directed at Paxos, the entity behind BUSD. Concurrently, the New York Department of Financial Services ordered Paxos to halt the issuance of BUSD.
In conclusion, Binance’s recent statement signifies its intention to phase out support for the Binance USD stablecoin (BUSD) by February 2024, aligning with Paxos’ plans.
The exchange encourages users to transition to the First Digital USD (FDUSD) stablecoin and has taken steps to facilitate this change, including fee-free conversions and trades.
This move appears to be influenced by regulatory developments involving BUSD and Paxos.
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The parliamentary ethics subcommittee in South Korea has voted against the expulsion of Kim Nam-kuk, a former member of the Democratic Party, the main opposition group.
This decision was reported by the local news agency Yonhap on August 30.
On August 29, the subcommittee dismissed the motion to expel Kim Nam-kuk, with a 3-3 split between the ruling People Power Party (PPP) and the Democratic Party (DP).
The motion required a majority vote to be approved, which did not materialize.
This move comes after Kim faced significant backlash earlier this year due to revelations that he possessed over $4.5 million worth of Wemix (WEMIX) tokens, developed by South Korean blockchain game creator Wemade.
The Wemix tokens had been tradable on major South Korean exchanges until a local court ordered their removal from platforms in late 2022.
Kim’s ownership of Wemix tokens raised serious concerns about potential conflicts of interest, misuse of insider information, and potential involvement in money laundering.
This controversy played a role in expediting the creation of a legal framework mandating that officials disclose their cryptocurrency holdings, including assets like Bitcoin (BTC), in South Korea.
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The requirement for cryptocurrency holdings disclosure is not unique to South Korea.
In July, the country’s Financial Services Commission introduced a new bill stipulating that all companies issuing or possessing cryptocurrencies must disclose their holdings starting from 2024.
In another cryptocurrency-related development, the city of Cheongju in South Korea announced in mid-August that it would initiate the seizure of cryptocurrencies from local tax defaulters.
This initiative compels cryptocurrency exchanges such as Upbit and Bithumb to report on these individuals who have failed to meet their tax obligations.
In conclusion, South Korea’s parliamentary ethics subcommittee’s rejection of the motion to expel Kim Nam-kuk, despite concerns surrounding his cryptocurrency holdings, reflects the ongoing debate and regulatory efforts in the country regarding the transparency and accountability of cryptocurrency-related activities.
This decision aligns with broader initiatives to enhance disclosure and monitoring of cryptocurrency assets within South Korea’s regulatory framework.
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Decentralized exchange (DEX) platform dYdX is set to unlock approximately $14.02 million worth of its native DYDK tokens, distributing them across its community treasury, as well as offering rewards to traders and liquidity providers.
Scheduled for August 29, dYdX plans to release 6.52 million tokens, equivalent to 3.76% of the total circulating supply of DYDX.
Among these, a portion of 2.49 million DYDX tokens, valued at $5.36 million, will be assigned to the community treasury.
This fund will support various initiatives, including grants for contributors, community-driven projects, and liquidity mining efforts.
The remaining 4.03 million DYDX tokens will be divided between liquidity provider rewards and trading rewards.
Liquidity providers are set to receive 1.15 million tokens, totaling $2.47 million, while trading rewards will be granted 2.88 million tokens valued at $6.18 million.
This initiative follows a previous unlock event on August 1, which followed a similar fund allocation pattern.
Insights from TokenUnlocks reveal that investors hold the largest share at 27.7%, trailed by trading rewards at 20.2%, and the community treasury at 16.2%.
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DYDX has a total token supply capped at 1 billion tokens, with over 75% of these tokens currently locked.
Antonio Juliano, the founder of DYdX, has recently advised cryptocurrency entrepreneurs to explore opportunities in international markets beyond the United States.
Juliano underlines that crypto startups could experience accelerated growth in more accommodating foreign markets.
He suggested that, given the challenges and compromises associated with serving US customers, crypto builders should temporarily divert their focus away from the US market and consider re-entry after 5-10 years.
Juliano emphasizes that a substantial portion of the crypto market is situated overseas, thus encouraging innovators to discover product-market fit and innovate in these regions before returning to the US market with increased leverage.
Juliano’s perspective arises from the sluggish progress of US crypto regulation.
He believes that the crypto sector’s influence on US policy would strengthen with further growth and development.
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Argo Blockchain, a prominent player in the mining industry, grappled with adverse market conditions and intense competition, culminating in a reported loss of $18.8 million during the first half of 2023.
This figure marked a significant improvement, showcasing a 50% reduction compared to the $39.6 million loss in the same period in 2022.
The company’s efforts to enhance its financial position were evident as it successfully curtailed its debt by $4 million over the course of 2023, leaving a total debt of $75 million.
This achievement underscores a remarkable $68 million debt reduction since June 2022, when the company’s debt had reached $143 million.
Revenues followed a downward trajectory, declining by 31% in comparison to the first half of 2022.
Argo attributed this decline, which resulted in $24 million in revenue midway through 2023, to a drop in the value of Bitcoin (BTC) as well as an upswing in the global hash rate and the resultant network difficulty.
The mining company’s operational statistics indicated a slight increase of 1% in mined BTC, totaling 947 BTC, during the initial half of the year, in contrast to the same period in 2022. It’s noteworthy that the global hash rate surged by 78% in 2023.
As of June 2023, Argo’s financial statement displayed $9.1 million in cash holdings along with 46 BTC.
A pivotal moment in the latter part of 2022 saw Argo secure $7.5 million in gross proceeds through a share placement, attracting both institutional and retail investors.
Although facing the specter of bankruptcy in late 2022, Argo’s interim results for 2023 indicate a resolute intent to enhance its total hash rate capacity to 2.8 exahashes per second (EH/s).
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This expansion plan entails deploying 1,628 BlockMiners at its mining facilities located in Quebec.
Furthermore, the company revealed its ongoing discussions regarding the sale of “certain non-core assets” as part of its strategy to mitigate overall debt.
Notably, a transformative sequence of transactions transpired between Argo and Galaxy Digital, involving the sale of the Helios mining facility and associated property for $65 million in December 2022.
This was followed by a strategic refinancing move, resulting in a new $35 million, three-year asset-backed loan with Galaxy, effectively reducing Argo’s total indebtedness by $41 million and streamlining its operational structure.
Matthew Shaw, Chairman of Argo’s board, emphasized the importance of maintaining a sizable fleet of over 27,000 miners, with a significant portion operating through an agreement with Galaxy at the Helios site.
These developments unfolded subsequent to Argo’s financial predicament in late 2022, which prompted the collaboration with Galaxy.
The aftermath of this partnership saw the resignation of Argo’s former CEO, Peter Wall.
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Hong Kong’s HashKey cryptocurrency exchange is gearing up to introduce Bitcoin and Ether trading services for retail clients from August 28, as reported by local media.
A unique feature of this offering is that investors can allocate a maximum of 30% of their total net worth to cryptocurrencies on the platform.
This milestone achievement was made possible after HashKey successfully upgraded two significant licenses granted by the Securities and Futures Commission (SFC) of Hong Kong, becoming the first crypto exchange in the region to gain regulatory approval for extending crypto trading services to retail investors.
The initial license, classified as Type 1, empowered HashKey to establish a virtual asset trading platform within the boundaries of Hong Kong’s securities regulations.
The second license, referred to as Type 7, bestowed the exchange with the authority to furnish automated trading services to both individual and institutional users.
Following suit, OSL, another crypto platform, also secured the SFC’s green light to introduce retail trading services for Bitcoin and Ether.
This strategic move has positioned Hong Kong as one of the pioneering jurisdictions that officially permit cryptocurrency retail trading in accordance with the law.
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Hong Kong embarked on a journey to cultivate a crypto-friendly atmosphere within its borders in 2023. Financial Secretary Paul Chan expressed the government’s and regulators’ commitment to fostering a flourishing crypto and fintech ecosystem.
In March, over 80 crypto firms expressed their intent to establish a presence in the region.
The Hong Kong Monetary Authority (HKMA) further endorsed this stance by urging banks to facilitate services for cryptocurrency enterprises.
By May, HKMA unveiled a licensing structure for crypto platforms, with a deadline set for June 1.
Subsequently, a few crypto platforms received the nod to extend crypto trading facilities to both retail and institutional clientele by August.
The significance of a robust regulatory framework that safeguards investor interests is particularly evident in Hong Kong’s case.
HashKey’s decision to limit retail traders to Bitcoin and Ether underscores the exchange’s commitment to meeting their needs while ensuring prudential standards are maintained.
Despite attempts to solicit comments, HashKey remained unresponsive to inquiries from Cointelegraph as of the time of publication.
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