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Overview of Ethereum 2.0: Things you should know

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In 2013, Vitalik Buterin proposed Ethereum: a decentralized application platform, it was officially launched in 2015 funded by crowdsale. Ethereum is a blockchain-based distributed platform featuring smart contract functionality. It offered many advantages like decentralization, consensus and immutable but it had its downside. There are major scalability and inflation issues in Ethereum 1.0, a promised decentralized world computer:

Scalability If any of the DeFi applications or if any of the games gain traction, the Ethereum network is debilitated until the user experience gets so bad that the DeFi application or game stops being played.

Inflation Transaction fees on the Ethereum are paid in Gas which can escalate at any period of time, in fact, it can be increased up to 70% at peak usage. 

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That is why in December 2019, Vitalik Buterin announced Ethereum  2.0, it is the advanced version of Ethereum that is set to be launched in 2020 with a pending promise of decentralized world computer. Buterin showed ambitious goals for Ethereum 2.0, which includes proof of stake, sharding, and much more.

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Ethereum 2.0 is meant to improve the Ethereum scalability by introducing a proof-of-stake consensus mechanism, which will eliminate the need for expensive proof-of-work mining. And sharding, which will improve the speed and throughput of ETH transactions. 
The Ethereum wiki maps out seven distinct phases for Ethereum 2.0, which is still at the research stage. For Ethereum 2.0 to be functional, the first three phases will need to be completed:

  • Phase 0 — Beacon Chain: The Beacon Chain chain that will run parallel to Ethereum’s proof-of-work chain on the proof-of-work program.
  • Phase 1 — Basic Sharding: Sharding will help in the scalability of the network by dividing it into shards and authorizing many transactions is intended to help the transactions scale by dividing the network across multiple shards, allowing the network to process many transactions simultaneously.
  • Phase 2 — eWASM: A modified version of  Ethereum Virtual Machine that supports proof-of-stake and sharding.

Ethereum 2.0 will be running on proof-of-stake, which will be introduced on The Beacon Chain and will initially run parallel to Ethereum’s proof-of-work chain. The Beacon Chain will be responsible for the maintenance of a set of validators for proof-of-stake consensus that propose and validate new blocks to add to the chain. Each validator will have to stake 32 ETH to validate a block. The blocks in the chain will be validated by randomly selected 120 validators via the Beacon chain to vote on a block. Phase 0 of the Beacon Chain will be extremely barebones, with support for neither smart contracts nor accounts, but it will be developed further down the line into sharding and an updated Ethereum Virtual Machine.

Sharding involves partitioning a large amount of data into smaller pieces that are called shards, in Ethereum 2.0 each shard will have its own chain of transactions. A shared data layer will be formed. It will be introduced on top of the proof-of-stake Beacon Chain which will be verified by the randomly assigned validators. A shard’s validators only have to verify transactions on the shard that they’re assigned. Approximately 100 shards will be introduced in Phase 1.0 which will run in parallel.  

Even though sharding will scale the network, it will also introduce some security risks. With the current structure of proof-of-work, an attacker needs to up to 51% of the hashrate to successfully mediate an attack. If the network is split into 100 shards, for example, it will take less of the network hashrate (or deposit in PoS) to successfully attack a shard of data, also sharding will lead centralization of the network as different shards are run by a relatively small group of validators. 

eWASM: The Ethereum Virtual Machine v2 To authorize proof of stake and parallel transaction processing through sharding in the chain, the Ethereum team has planned to build a new virtual machine known as eWASM. 

The proposed aspect of “Ethereum 2.0” offers an answer to the problems faced in Ethereum 1.0. Ethereum 2.0 is still in the heavy research and development stage, all the three phases of it will not be updated at a single point of time but it will be rolled out in phases, the sharding map alone is of 6 phases. Phase 1 and Phase 2 are expected to be out in 2020 and 2021. Needless to say, there’s a lot in store for the Ethereum community this decade. 

On that account, Ethereum 2.0 is still in processing and no doubt it will take a long time before it is fully functional. One thing for sure, though, the Blockchain community has a lot in store for them this year. 


At QuillHash, we understand the Potential of Blockchain and have a good team of developers who can develop any blockchain applications like Smart Contracts, dApps, DeFi, DEX on the any Blockchain Platform like EthereumEOS , Stellar and Hyperledger.

For further discussion and queries on the same topic, join the discussion on Telegram group of QuillHash — https://t.me/quillhash.

The post Overview of Ethereum 2.0: Things you should know appeared first on Quillhash Blog.

Source: https://blog.quillhash.com/2020/02/26/overview-of-ethereum-2-0-things-you-should-know/

Blockchain

Bitcoin price prediction: Bearish overtones cloud BTC/USD pair as $9,700 support beckons

Bitcoin price downside is restricted to $9,700 as BTC/USD tumbles towards crucial support. Bitcoin and gold realized correlation hit 12-month high on Monday. DeFi decline is making traders cautious and Is behind today’s Bitcoin price correction. An abrupt fall below $9,700 will fill the crucial CME gap at $9,600 and provide a cushion. Bitcoin price […]

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  • Bitcoin price downside is restricted to $9,700 as BTC/USD tumbles towards crucial support.
  • Bitcoin and gold realized correlation hit 12-month high on Monday.
  • DeFi decline is making traders cautious and Is behind today’s Bitcoin price correction.
  • An abrupt fall below $9,700 will fill the crucial CME gap at $9,600 and provide a cushion.

Bitcoin price prediction – Current price overview

Bitcoin price started the day at $10,492 to immediately move upwards and touch a high of $10,573 only to be rejected. The profit booking turned severe in the next few hours as the pair broke below $10,300 to touch day’s low of $10,062 and threatened to break the psychological $10K barrier.

Bulls came into few hours later to buy small dips on the hourly chart. Subsequently, the BTC/USD price once again moved past the $10,500 level. But this time, the rejection was even more violent, and the crypto king immediately rolled towards $10,138 low. Currently, the price has recovered slightly to trade around $10,225 level.

There’s a bearish overtone to the Bitcoin price prediction as BTC/USD struggles to hold vital support levels. In case the crypto king slips below the $10,000 level, the next big support at $9,700 will serve as an even stronger cushion.

Bears have dominated Bitcoin price in the last 6 hours

Bitcoin price met severe resistance at $11,200 and quickly tumbled down. During the fall, the BTC/USD pair first found support at $10,800 only to find the ground slippery. Attempts to bounce back were again met with rejections, and the price moved below the crucial $10,300 mark to touch new daily lows.

Bitcoin price prediction: Bearish overtones cloud BTC/USD pair as $9,700 support beckons 1
Bitcoin price chart by TradingView

The bulls clearly look exhausted and are finding it difficult to penetrate through the resistance ceiling above at $11,000. Bearish positions are piling up as Bitcoin price moves to touch even lower support at $9,700.

BTC/USD 2-hour chart is filled with red candlesticks

Bitcoin price has now entered bearish territory on the hourly charts since it has broken below key support at $10,500. The pair has not been able to move past the SMA20 curve currently situated at $10,480. However, the rising volatility can cause an imminent breakout provided the volume rises around the 20-day Bollinger Band.

As trader Alan Masters points in below chart that if the price closes the day under 100-day exponential moving average, new lows will be in sight. The pair can even slide towards $9,200.

Bitcoin price prediction: Bearish overtones cloud BTC/USD pair as $9,700 support beckons 2
Bitcoin price chart by TradingView

The MACD is showing a bearish signal as the market momentum shifts downwards. The RSI is slowly inching towards the oversold territory. Even though the hourly charts are sounding a death knell for the bulls. The psychological support at $10,000 can serve as a bounce-back price point.

So, how much decline is in store for Bitcoin price?

The daily Fibonacci patterns observed at 38.2 percent and 23.6 percent, along with the Bollinger Band curve, are painting a neutral picture with a downward bias. The price has been summarily rejected from crucial resistance at $12,000. Moreover, the Bitcoin price is now trading below the $10,500 support mark.

The pair will touch oversold territory on the hourly charts at $9,700, and it will likely witness as a strong to moderate buying action. Interestingly, it is also the weekly Fibonacci 161.8 percent retracement mark.

‘Buy the Dip’ signal from Spent Output Profit Ratio (SOPR) indicator

Glassnode’s Spent Output Profit Ratio is a leading on-chain data-based indicator. On-chain metrics can deliver insights on better predicting the market. Glassnode says that its SOPR indicator is hinting towards a buy signal as per the current Bitcoin ecosystem.

As per Glassnode, the SOPR index reflects the average stakeholder’s profit or loss scenario. It is calculated as the ratio of realized value output spent to the creation value. It shows the progress of stakeholder’s profit sales on an average. In case the SOPR value is more than one, it shows that price at which coins are being sold is more than what was paid for buying and vice versa.

Presently, the SOPR index is signalling a ‘buy the dip’ light to the traders. Philip Swift of Decentralized says that SOPR is shifting under one level, and it is the perfect time to buy the BTC/USD pair. Considering the current decline, traders will have to study other factors before putting their money on the bull case.

Bitcoin price prediction: Profit booking imminent before the leg next down

Bitcoin price has sharply declined from the $10,415 support line and now entered the bearish territory. Today marks the third straight day of bearish activity, and SMA 20 curve offers stiff resistance to any upward movement. Squeezes in Bollinger Bands on hourly charts show that volatility is extremely low. However, squeezes are usually indicative of a massive upcoming price movement. Technically, the longer the period of a squeeze, the more prominent will be the price breakout.

As of now, the price will move horizontally on the daily chart with a bearish trend on the hourly timeframe. So, as of now, it looks like the price will trend horizontally as BTC enters a period of consolidation.

Disclaimer: The information provided is not a trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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MakerDAO Users Hosed by March Flash Crash Won’t Get MKR Payouts, Say MKR Whales

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MakerDAO will not compensate victims of March 12’s “Black Thursday” flash crash that left some of the decentralized finance (DeFi) platform’s investors out $8.33 million, according to a vote that closed Tuesday. The Maker community had initially voted in early April to refund sunken investors. 

Nearly six months later and the community – represented by current holders of Maker’s MKR governance tokens – concluded a final vote to give zero compensation for lost funds. Some 65% of votes opted for zero compensation, with the next two options for partial compensation receiving 18% and 15%, respectively.

The vote itself was dominated by large MKR holders. Only 38 unique votes were cast, equivalent to 8.74% of MKR token holders, with the low turnout reflecting some of the current difficulties associated with governance in the booming DeFi sector.

Stepping back, many Maker users had collateral positions for outstanding loans liquidated after a sudden, mid-March crash in the price of ether (ETH). Additionally, investors were unable to maintain positions because of a backlog of transactions on the Ethereum blockchain as investors sought to flee the COVID-driven market collapse.

The one-two punch was preyed upon by market making bots that exploited the flaw to the tune of 2.4 million ETH. Broken logic in the platform’s collateral liquidation engine could be exploited under the right conditions to gobble up collateral on the cheap.

Investors have since lobbied the community for partial compensation denominated in the platform’s MKR governance token. All options included in Tuesday’s vote included MKR as the compensation vehicle. (Early on, affected investors had pushed for ETH.)

Yet, participating MKR holders were incentivized to vote against the compensation as any additional printing of MKR tokens would dilute the value of their holdings. Many community members said as much in the MakerDAO forum. 

Litigation against the Maker Foundation in the form of a class-action lawsuit continues regardless of the vote’s outcome, said Adam S. Heder, the Harris Berne Christensen LLP attorney representing MakerDAO’s Black Thursday investors.

Lead plaintiff Pete Johnson filed three counts against the Maker Foundation in April including negligence, intentional misrepresentation and negligent misrepresentation. He and joining members of the suit are seeking up to $28.35 million in compensation.

“The parties have submitted briefing on the Maker Defendants’ motion to compel arbitration. We don’t know yet when the Court will issue its ruling,” Heder said via email.

The Maker Foundation declined to comment.

Source: https://www.coindesk.com/makerdao-vote-march-flash-crash-mkr-compensation

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Kraken releases new security updates to combat phishing attacks

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Crypto exchange Kraken’s Chief Security Officer, Nick Percoco, announced the release of four new security enhancements, on the Kraken platform that will be made available to all the exchange’s customers from today. Percoco further detailed the security updates in four different features named: Security Shield, Security Checkup, Device Approvals, and Device Management, with each step having its own purpose.

While Security Shield would indicate the security state of users’ accounts, Security Checkup step would make the process of securing accounts easier for users. Meanwhile, the roll-out of the Device Approvals feature would combat phishing attacks in particular. The feature would alert users if the system detects an attempt to sign in from an unrecognized device. The exchange believed that such device-approval mechanisms would mitigate 60% of phishing attacks.

In addition to this, the security releases would also update Kraken’s Security Center that includes Session & Device management. According to the Chief Security Office, Device Management would be the next step that would follow the approval of a device. This would allow users to see and manage their devices as well as users’ signed-in sessions. Percoco also said that users will be able to see all their active sessions and approved devices, something that can be revoked entirely or in any combination of these.

Kraken is said to have a large number of new security enhancements on its roadmap that will be rolled out throughout this year and continue until 2021. The Chief Security Officer revealed that these future releases would address authentication enhancements, more activity logging, and alternative methods for receiving critical notifications. However, the announcement did not mention if these security enhancements were due to any current increase in phishing attacks or whether its users had lost funds.

Source: https://eng.ambcrypto.com/kraken-releases-new-security-updates-to-combat-phishing-attacks

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