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Ethereum 2.0 Isn’t a Panacea for Sharding and Scalability, Who Might Be?

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The launch of ETH 2.0 seems to be one of the hottest stories since the launch of the original Ethereum blockchain. Despite the first-ever smart contract platform being so hotly anticipated, it was not even three years old before its scalability issues started to become evident. Amid the blockchain and ICO mania of late 2017, the platform started to choke on the volume of its own traffic. 

So it’s hardly surprising that the long-awaited upgrade is proving to be such a talking point. Ethereum 2.0, also dubbed Serenity, has been several years in the making now, and the community has been forced to endure multiple delays. Vitalik Buterin himself has even stepped forward to assure eager fans that the implementation will go ahead regardless of the level of readiness

While it’s reassuring that Ethereum’s creator is taking the lead on shipping the upgrade, those who are watching the project closely still have legitimate reasons to feel concerned. 

What’s at Stake? 

First and foremost, the statement “regardless of the level of readiness” is hardly reassuring, given what is literally at stake. The first phase of the project will involve a move from Ethereum’s proof of work consensus, to proof of stake (PoS), with a minimum stake of 32 ETH for someone to become a validator. 

With this level of funding in the pot, it’s nerve-wracking to consider that the move to PoS may happen before it’s fully ready. 

Furthermore, the initial launch is only the first phase. It involves the implementation of the new Beacon chain, which will run in parallel to the current Ethereum blockchain. This means that nobody is going to feel the benefit of ETH 2.0 in terms of higher scalability until the later phases arrive. 

This is because the move to sharding, Ethereum’s scalability solution, will only happen in the final phase of implementation. Sharding essentially splits the blockchain into fragments to enable parallel processing, removing bottlenecks to transaction throughput. 

Only once sharding has been implemented, and dApps can start to migrate to the new chain, will Ethereum become truly scalable. 

At the same time as he made the comment about launching regardless of readiness, Vitalik Buterin also elaborated that the ETH 2.0 implementation  is “in some ways simpler than Ethereum 1.0 and in some ways more complex.” 

The key point here is that the first version of Ethereum was never designed for scalability, so over the years that we’ve been watching the ETH 2.0 challenges, it’s become apparent that the developers are attempting to change the engine on a moving vehicle.

Another Vehicle in the Race

In the time since the original version of Ethereum launched, while the developers have been wrangling with an upgrade, other projects have built their vehicles with the engine needed for scalability. Furthermore, the wheels are now in motion. Since 2018, Ardor has been operating using many of the same principles to which Ethereum still aspires. 

The Ardor architecture uses a parent chain comparable to the Beacon chain, also operating on a proof-of-stake consensus. Child chains attach to the Ardor parent chain, enabling parallel processing of transactions from a wide variety of applications. 

The original proof of Ardor’s concept came from the first child chain, known as Ignis. This chain provides those wanting to use the Ardor blockchain with many of the features they would need, right out of the box. These include a coin exchange, data cloud, and voting system, among many others. 

Ardor’s child chains operate in approximately the same way as sharding on the Beacon chain. The parent chain maintains security and oversight of the state of the ecosystem, while the child chains can take care of processing their own transactions. 

Supplementary Benefits

Because Ardor has been up and running since the start of 2018 and was designed with certain features in mind, the project even offers other benefits beyond what Ethereum 2.0 will offer once it launches in full.

For example, on Ardor, child chains can operate using their own native token, meaning they don’t have to require their users to hold ARDR. In contrast,  transaction fees on Ethereum 2.0 will still be paid in ETH, representing a significant barrier for users.

Furthermore, Ardor supports lightweight smart contracts that don’t require validation by every single node on the child chain. These contracts are stateless, meaning they’re less prone to bugs and hacks.

Combined, these features have made Ardor the blockchain of choice for several projects. Most notably, this year, the Austrian government has selected Ardor for inclusion in two projects. Hot City uses blockchain to crowdsource waste heat, redirecting it back into the energy grid. Qualisig is a project aimed at using blockchain-based digital signatures for secure communication in a crisis, prompted by the global COVID-19 pandemic. 

While the ETH 2.0 developers have finally committed to shipping the first phase this year, there is still no date. However, other projects that already offer many of the same features continue to gain traction. The risk for Ethereum is that by the time the 2.0 version does get fully implemented, further upgrades will already be required. 

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Source: https://btcmanager.com/ethereum-2-0-panacea-sharding-scalability-who-might-be/

Blockchain

Bitcoin Price Prediction: BTC/USD Creeps Towards $10,600 Following Rejection at $10,847

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Bitcoin (BTC) Price Prediction – September 30

The Bitcoin price is trading above $10,700 against USD and the coin is likely to climb steadily with a few downward moves.

BTC/USD Long-term Trend: Bullish (Daily Chart)

Key levels:

Resistance Levels: $11,600, $11,800, $12,000

Support Levels: $10,000, $9,800, $9,600

BTCUSD – Daily Chart

It is safe to say that Bitcoin has been turbulent in recent days, after tight trading for a few weeks with relatively low volatility. A few days ago (September 24), the Bitcoin price rose sharply by moving above the resistance levels of $10,500 and $10,700 against the US dollar. At the moment, the price is declining and is moving close to the 9-day and 21-day moving averages at $10,755.

What is the Next Direction for Bitcoin?

A crucial uptrend could probably form if the coin remains above the moving averages, with support close to $10,500 on the daily chart. However, if the decline occurs below the moving averages, the price could extend its downward correction to the lower boundary of the channel and any other loss could possibly push the price of Bitcoin to the support level of ​​$10,200.

More so, a further sell may cause the market to reach the critical supports at $10,000, $9,800, and $9,600. In other words, if the market were to rebound, traders could see the next buying pressure towards the resistance levels of $11,600, $11,800 and $12,000 with the technical indicator RSI (14) remains below average.

BTC/USD Medium-Term Trend: Bullish (4H Chart)

Looking at the 4-hour chart, Bitcoin’s price is currently trading around $10,758 and above the 9-day moving average after a reversal from $10,681. Meanwhile, traders can see that the bullish supply is becoming steady in the market while the bears are also trying to drag the price down.

BTCUSD – 4 Hour Chart

However, if the buyers can strengthen and energize the market, they can further push the price to a $10,900 resistance level. Therefore, breaking the mentioned resistance could also allow the bulls to test the $10,950 and above. Inversely, the RSI (14) is currently moving around 52-level, turning down may cause the bears to step back which could drag the price to the support level of $10,550 and below.

Source: https://insidebitcoins.com/news/btc-usd-long-term-trend-bullish-daily-chart-18

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Bermuda grants Bittrex DABA license to commence local operations

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The island nation of Bermuda is in the news today after it gave U.S-based cryptocurrency exchange, Bittrex, a Class F (“Full’’) Digital Assets Business Act license that will allow the platform to operate under the supervision of the Bermuda Monetary Authority (BMA). According to Bittrex Global CEO Tom Albright, Bittrex (Bermuda) will provide additional digital asset services like Futures, in particular, based on further approvals by the BMA. 

Bermuda’s Digital Assets Business Act of 2018 (DABA) is a comprehensive regulatory framework that oversees crypto-financial services, including digital asset issuance, sale and redemption, exchange operations, and custodial services. 

However, Bittrex is not the first entity to receive Bermuda’s DABA license since Circle was the first major crypto-company to receive Bermuda’s Class F DABA license. Meanwhile, the island nation had also struck a $15 million investment deal with Binance in the past. These developments are a sign of how the island nation has been keen to adopt cryptocurrency and blockchain tech over the past few months and years.  

Like Bermuda, many governments across several nations have only now begun to study the use cases of cryptocurrencies and blockchain. However, Bermuda was one of the first sovereign nations to accept payments in USDC stablecoins for tax payments, fees, and other government services.

In fact, in 2019, Bermuda also announced the development of its blockchain-based digital ID system, followed by a stimulus token that allowed the distribution of financial aid to its population. The token project in question was actually accelerated after the outbreak of the COVID-19 pandemic for people in need of emergency funds. 

Source: https://eng.ambcrypto.com/bermuda-grants-bittrex-daba-license-to-commence-local-operations

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President Maduro: Venezuela Seeks Opportunities To Use Cryptocurrency For Global Trade

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  • Venezuela’s cryptocurrency story continues as the country’s President Nicolas Maduro has presented new use cases. 
  • A recent report informed that the South American nation is studying the possibility of using digital assets in trades alongside the national Petro. 
  • President Maduro has presented new anti-sanctions law in the Constituent National Assembly. In a recent speech, he asserted:

“The anti-sanctions law is the first response to give new strength to the use of petro and other cryptocurrencies, national and global, in domestic and foreign trade, so that all cryptocurrencies of the world, state and private, could be used. This is an important project that is under development.”

  • The news comes after Maduro suggested last year that his country could adopt cryptocurrency payments.
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  • Additionally, Venezuela signed a new tax agreement this summer that enabled the nation to start collecting taxes and fees in the Petro.
  • A study reported by CryptoPotato revealed that digital assets already play an essential role in the country’s struggling economy. Venezuela’s intensifying financial crisis has catalyzed significant interest in cryptocurrencies as people seek opportunities to escape the devaluating national currency.
  • The Bitcoin peer-to-peer volume exemplifies the growing interest in the primary cryptocurrency within the country. As per data from coin.dance, the BTC P2P volume on LocalBitcoins has been continuously surging in the past several months.
Bitcoin P2P Trading Volume LocalBitcoins. Source: coin.dance
Bitcoin P2P Trading Volume In Venezuela on LocalBitcoins. Source: coin.dance
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Source: https://cryptopotato.com/president-maduro-venezuela-seeks-opportunities-to-use-cryptocurrency-for-global-trade/

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