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Ethereum Uncovers Blockchain Bugs to Stabilize Medalla Testnet

Ethereum developers discussed the technical issues that went wrong during the launch of Medalla testnet and that could have been improved to make the release smoother.

Ethereum Team Brainstorms

On a live stream, developers deliberated about issues that needed to be addressed for the testnet to be healthy. The software developing team all agreed that the number of validators that were active during the launch was lower than desired, as the network needed more participation to operate optimally. However, since the launch earlier this week, the network has been reported to have stabilized.

Bugs Uncovered During Genesis

Ethereum (ETH) team deliberated about what went wrong during the launch. Before genesis time was initiated, several bugs were discovered. These bugs would have hindered the connections between nodes to run smoothly if not fixed. As this was only uncovered a few days before the launch, some validators might have failed to upgrade to the latest software update, leaving the issue of interoperability unresolved just before the launch of Medalla testnet.

As ETH 2.0 testnet relies on the community to run smoothly, all validators must do their part in order to ensure the health and stability of the blockchain.

Ethereum Raises Awareness to Prevent Future Mishaps

Problems with the launchpad that enabled validators of the blockchain network to stake their coins were also uncovered. Node binaries were not prepared in time, and it was uncovered by Ethereum developers that some users had staked multiple 32 ETH deposits, the minimum level required to mine on ETH 2.0 testnet.

To improve user experience and make Ethereum accessible to all, Ethereum Foundation redesigned their website shortly after the launch of Medalla and integrated educational content as well.

Participation Levels During Launch

As validator inputs was 57% during the first hour of the launch, Ethereum developers stipulated that this was partially due to Nimbus and Lodestar clients demonstrating low validator participation during attestations, which are crucial for verifying each block. Also, during the launch, some important stakers were offline, but through a bit of coordination with the 5 main client teams – Teku, Prysm, Nimbus, Lodestar and Lighthouse- the participation rate soared to 80%, ensuring a healthier chain.

Medalla 2.0 Final Testnet

Medalla testnet is still mature, and therefore it appears that is it not completely stable at the time of writing. However, Ethereum team are working on improving and perfecting the blockchain, before the anticipated launch of Ethereum 2.0 mainnet. Ethereum 2.0 is much anticipated by the ETH community, as it will transition from a Proof-of-Work consensus to Proof-of-Stake (PoS), joining Cardano’s ranks. PoS will enable users in the Ethereum network to lock up their accumulated digital coins and get paid for helping secure the blockchain.

Medalla 2.0 testnet is to be the last testnet released before Ethereum 2.0 mainnet comes into play. On the day of the launch, an Ethereum developer reportedly stated confidently :

“Low participation is just temporary; we will get through this. We have genesis, we have a chain running and resilience built into the protocol. We have an opportunity for the protocol to demonstrate what it can do, which is to recover from low participation from validators.”

Ethereum developers are confident that their blockchain project will only get better from here on forward.

Bitcoin Most Popular Crypto in North America, Market Experts Report

Bitcoin (BTC) has always been the most popular cryptocurrency on the global market, but the region that is most invested in BTC assets appears to be North America.

Cryptocurrency Trading in North America

According to a recent report by analytics firm Chainalysis that surveyed the key trends on North America’s cryptocurrency market, North America is the third region most active in cryptocurrency trading, trailing behind Western Europe and East Asia. However, what was interesting was that compared to their counterparts, professional and institutional investors in North America tend to favor Bitcoins over other cryptocurrencies when it comes to driving their digital assets forward.

The Chainalysis report indicated that in terms of investment strategy for North Americans, “the first thing we see from the data is that North American investors disproportionately favor Bitcoin.”

Source: Chainalysis

North American crypto holders were also reported to follow a buy-and-hold model, whereas East Asian investors preferred to trade their digital assets more frequently.

Bitcoin Leads the Crypto Market

In any given region in the world, BTC is the most popular cryptocurrency, valued to be north of $11,800 in market capitalization at the time of writing. After months of being in a slump, Bitcoin recently made headlines globally with a solid bull run, surging past the $12,000 mark on August 2 and reaching its all-time high in 2020. Market experts were quick to comment on Bitcoin’s surge, saying that the flash move should come as no surprise and that further gains should be expected of BTC. Many industry experts seem to think that Bitcoin reaching past the $10,000 after months of inactivity is just an anticipation of the next bull run, as the dollar is currently weakening with the Federal Reserve mass printing USD for stimulus relief.

Co-founder of Gemini crypto exchange and a huge BTC advocate, Cameron Winklevoss said that “not owning Bitcoin will be a worse investment decision than not investing in Amazon,” in this day and age.

High Risk, High Return?

With Bitcoin’s recent surge on the market, gold also rallied. JP Morgan Chase commented on this market phenomenon and observed that older investors seemed to prefer backing gold, while younger investors and millennials favored cryptocurrency and technology stocks. JP Morgan Chase strategists observed that those born between 1946 and 1960 leaned towards gold investments, as it is regarded as a safe-haven asset.

Saving for a Rainy Day with Bitcoin & Tech

On the other hand, tech and cryptocurrency investments come with higher risks, as evidenced by the volatility of Bitcoin on the crypto market. CEO of deVere Group Nigel Greem seems to think that Bitcoin will potentially knock gold from its long-held position of being a safe-haven asset. The founder of the financial consultancy firm backed his statement by pointing to how the trading market was “surging in tandem with gold on US-China tensions.” Other crypto experts looked at the depreciation of the US dollar as an indicator that Bitcoin assets were gaining popularity as an alternative investment.

In light of the pandemic, the US has been administering stimulus checks as part of their economic relief protocol, and it has been observed in the past that some of these funds have been redirected towards Bitcoin investments.

The US government has announced that the second stimulus payments are going to be administered sometime this month.

Winklevoss Sees US Stimulus Negotiation Fail as a “Wakeup Call And an Endorsement of Bitcoin”

Bitcoin billionaire Cameron Winklevoss thinks that this is the perfect opportunity to invest in Bitcoin, as the dollar keeps depreciating and US politicians are unable to reach a consensus on a stimulus package budget.

US Struggles to Set Budget for COVID-19 Relief

The US has been planning on releasing the second round of stimulus checks to provide economic relief during the ongoing coronavirus pandemic. On Thursday evening, senior administration officials of Congress and the Democratic party got together to discuss the budget for the second round of economic relief they are looking to provide, but both sides were unable to reach an agreement following a three-hour meeting.

Politicians on both ends were not able to reach an agreement on a price tag for the stimulus package, with Democratic representative Pelosi demanding a budget of $3.4 trillion. Republicans have evidently not consented to this, and it is unclear when US Congress will roll out a definitive number.

Winklevoss Backs Bitcoin

Bitcoin billionaire Cameron Winklevoss addressed the politicians’ inability to reach an agreement and said that it was a wakeup call to diverge from fiat and invest in Bitcoin. The co-founder and CEO of the crypto exchange giant Gemini took to his Twitter platform and said:

“The US dollar has become such funny money that politicians are now ‘trillions of dollars apart’ in stimulus negotiations. Remember when a billion was a big number? If this isn’t a wakeup call and an endorsement of #Bitcoin, I don’t know what is.”

Attributing much of his financial success to Bitcoin, the billionaire has in the past also been very vocal about his views regarding Bitcoin and a strong advocate of the “digital gold” cryptocurrency.

He thinks that with the depreciation of the US dollar due to mass printing for COVID-19 relief, Bitcoin is the way to go in terms of investment. Winklevoss is anticipating the next Bitcoin bull run, as the crypto industry is ever-changing and he thinks that the capital, infrastructure, and projects revolving around crypto are more innovative and advanced than before.

Bitcoin is currently valued to be around $11,800 in market capitalization, but crypto enthusiasts are avidly monitoring it for its next surge.

10,000 New Blockchain Companies Founded in China Despite COVID-19

COVID-19 has not prevented blockchain companies in China from emerging at a dramatic speed.

Blockchain On the Rise in China

Data from LongHash indicated that new blockchain firms have been emerging at a speedy rate despite the pandemic, and even recorded an all-time high in 2020. The data shows that the biggest number of founded blockchain companies was located in the Guangdong province in Southeast China, with the second largest number originating from the Yunnan province.

More than 10 000 new blockchain firms were established in the first 7 months of 2020, and with the rate at which new firms are emerging, the blockchain industry in China is set to boom at an all-time high. According to expert reports, China is set to surpass 2018’s total number of established blockchain companies, recorded at 18,500 new startups.

Blockchain for Capital

As of now, there are around 84,400 registered blockchain companies and of this amount, only 29,340 are in operation. Data from the Laboratory of Internet Financial Security Technology of the National Internet Emergency Center revealed that contrary to popular belief, a lot of these companies proclaiming to operate under the name of blockchain do not leverage the decentralized ledger and do not possess chain ownership and.

Rather, the majority of these registered startups disguised as blockchain firms were actually shell corporations aiming to capitalize on the increasing popularity of blockchain. The underlying goal of many of these companies is to draw the attention of corporate tech companies, in the hopes that the latter will buy them out.

The majority of the blockchain companies in China have been found to be registered under a small capital, the average amount estimated to be of 5,000 yuan. This translates to roughly $717 USD.

Benefits of Blockchain During COVID-19

With the surcharge of the healthcare system worldwide due to COVID-19, blockchain technology has been increasingly leveraged for efficient and reliable digital health services. A lot of firms have come up with strategies leveraging blockchain technology to aid the healthcare system and make a difference in this global medical upset. Blockchain technology has been used by the healthcare system to provide faster, safer digital services for online insurance claims, educational content, medical transactions, and much more.

Top Choice of European Blockchain Firms: Ethereum

As blockchain technology is being increasingly leveraged for its features and its open-source aspect, it is increasingly common for startups to employ this type of technology. A very popular ecosystem employed by many firms is the Ethereum blockchain.

Ethereum has been reported to dominate European blockchain enterprises, and it has come a long way since its establishment in 2015. Many companies leverage Ethereum blockchain ecosystem for its robustness, scalability and overall stable architecture.

The network recently launched Medalla, which is to be the last testnet before the adoption of Ethereum 2.0 mainnet, which will operate on a Proof-of-Stake consensus rather than a traditional Proof-of-Work protocol.

Band Protocol (BAND) and Chainlink (LINK) DeFi Tokens Outperform Bitcoin by Gaining 100%

With the recent boom of the decentralized finance (DeFi) industry, DeFi tokens have undergone more than a 100% gain on the crypto market over the past few weeks, outperforming Bitcoin.

Altcoin Season

Recently, with the growth of the DeFi industry, Band Protocol (BAND) and Chainlink (LINK) have been recorded to soar by 348% and 88% respectively, outpacing Bitcoin’s surge. The DeFi tokens bull run took effect in the span of 10 days. Since the beginning of this month, cryptocurrency BAND was recorded to peak at $17,78 from $3.9, and LINK rose from $7.6 to $14.45.

As for Bitcoin, the cryptocurrency surged past $12,000 on the market. However, according to Holger Zchaepitz, the global stock market has reached what experts call a “bubble territory,” which refers to an economic situation where asset prices experience a surge, before eventually falling back down in stock pricing.

2020, The Year of DeFi

Market experts point to the increasing popularity of decentralized finance apps (Dapps) and the growth of the DeFi sector to explain the sudden surge of Band Protocol (BAND) and ChainLink (LINK).

The boom of DApps enables avid crypto investors to trade, loan, and earn interest from cryptocurrency transactions easily and rapidly. Band Protocol (BAND) and Chainlink (LINK) both run on the oracle blockchain network, which is the underlying technology used to leverage DApps. On CoinMarketCap, ChainLink (LINK) was also recorded to have reached sixth on the market capitalization ladder.

Crypto data analytics firm Messari also explained BAND’s bull run by pointing at LINK’s trajectory. Their crypto experts pointed out that ChainLink might have spurred its counter rival’s growth on the market by stating:

“BAND has recently taken a page straight out of the LINK handbook with a slew of partnership and integration announcements, including a Coinbase Pro listing. Up over 32x on the year, its relative valuation play and anchor to LINK has worked so far.”

As BAND and LINK cryptocurrencies operate on different blockchain networks, they support separate DeFi ecosystems, which run on Ethereum blockchain.

Ethereum, A Big Player in The DeFi Industry

Ethereum has been having quite a year. With the recent launch of Medalla and the blockchain ecosystem celebrating its 5-year anniversary recently, Ethereum has been making headlines left and right. Its native cryptocurrency Ether also experienced a recent surge on the market, with investors hoping for it to push past the $400 mark.

At the time of writing, its cryptocurrency Ether is trading slightly north of $390. Ethereum is reputed to have the most DeFi applications run on a blockchain, leveraging smart contracts rather than an intermediary.

Blockchain-Based Driving Licenses in South Korea Hit One Million Drivers

Blockchain-powered driving licenses were made available as an option in South Korea in May.

Blockchain Digitizes South Korea

Since then, one million South Koreans have already leveraged this blockchain alternative, giving up their physical driver’s license. The blockchain-based driving license is offered to South Koreans, along with the PASS smartphone app, which is a transportation and travel app. Through the application, South Korean drivers can renew their digital licenses. As for non-permanent residents of the country, an English version of the license is offered as an alternative.

According to data from Statista, the number of South Koreans subscribed to the blockchain-based driver’s license represents more than 3% of the entire driving population in South Korea. The blockchain-powered driving license is the first digital identification card to be issued in South Korea, after the country’s Ministry of Science and ‘Information & Communications Technology’ (ICT) approved it in September 2019.

The blockchain-based project was officially launched in May, with the National Police Agency of Korea, the Korea Road Traffic Authority, and the country’s three major telecom providers SK, KT, and LG U+ collaborating to set the project in motion.

Just like the traditional ID card, the South Korean blockchain-powered digital card can be used for proof-of-age identification, buying alcohol and cigarettes, and much more. In order to provide proof of their driving license, users can show the PASS application, and flash the QR code on it.

Rental car industries and shared rides services are also interested in the blockchain technology, hoping to maybe use it in the future to replace face-to-face verification checks.

South Korea Loves Everything Bitcoin & Blockchain

Blockchain technology has been increasingly popular and revolutionized in South Korea. Earlier this week, South Korea’s largest commercial bank – Kookmin Bank – announced that they will start offering Bitcoin (BTC) custody services, thanks to a new partnership conducted with coin exchange Cumberland Korea and blockchain venture fund Hashed.

According to a blog post by Hashed’s legal compliance officer Jin Kang on August 7, Kookman Bank plans on normalizing cryptocurrency trade:

“KB Kookmin Bank, the largest bank of the four, anticipates that the digital asset industry will not only involve cryptocurrencies but also other traditional assets such as real estate, artwork, and other reified rights that will be issued and traded on blockchain platforms.”

RBL Bank Partners with Accenture to Build A Digital Bank Infrastructure

RBL Bank announced today that it will partner with Accenture consulting firm, who envisions that it can enhance the bank’s information technology (IT) network and services with its professional expertise.

RBL Bank Seeks Accenture’s Services

Through the partnership, RBL Bank hopes to take the institution’s business processes, banking services, and overall scalability to another level. This year, the banking industry has reportedly suffered from “unprecedented disruption.”

Accenture consulting firm aspires to empower RBL Bank by transforming the digital structure of its services, leading to future growth and fortified banking infrastructure for the bank. In a press release shared with Blockchain.News, India Market Lead for Accenture Piyush Singh said:

“We look forward to using our deep banking industry knowledge and digital capabilities to support RBL Bank in its journey to becoming a truly digital bank.”

RBL Bank hopes to enhance its digital presence and strengthen its online services in light of the digital age, which has sped up its growth given the current pandemic. Also, RBL Bank advocates that this will create a more “agile organization” and provide more efficient and quicker services.

Priding themselves to be an Indian private sector bank, RBL Bank will not be the first to embrace Accenture’s services as a professional consulting firm in order to advance its own growth. Beforehand, Bank of England and French Central Bank “Banque de France” have also adopted Accenture’s professional expertise to further promote the experimentation and implementation of their own central bank digital currency (CBDC).

Accenture has been reputed for modernizing banking services by providing digital expertise, as well as proposing innovative applications designed to enable users to transact and conduct key business and financial processes online. For RBL Bank, Accenture will be responsible for designing the core “technological skeleton” behind the financial institution’s IT system, and it will employ DevOps and Agile working methodology to improve the bank’s online services.

Will Reserve Bank of India Warm Up to Crypto?

Though India is making headway in adopting digitizing banking services, the country still appears to be behind its counterparts in the crypto world. There had been rumors that India law regulators were planning on banning cryptocurrency usage in the country.

However, earlier this year, the Reserve Bank of India had made it clear that it did not have any ban set in place for the cryptocurrency industry. The Supreme Court of India has overturned the central bank’s proposal of banning banks in India from providing crypto-related services. Despite the absence of a crypto ban, digital assets are still heavily unregulated in the country. Banks claim that they are waiting for further instructions from the central bank regarding cryptocurrency.

With the ongoing COVID-19 pandemic, India’s crypto trading industry has also been reported by Blockchain.News to have seen an increase of 400 percent earlier this year.

Despite the surge of crypto trading, much work is still to be desired for the industry’s future in India. While the Supreme Court has allowed virtual currencies to be used by institutional banks, crypto regulators in India still need to figure out a way to regulate crypto trade. With proper digital asset guidelines, the cryptocurrency industry can then flourish properly in the country.

Square Inc. Launches Alliance for Crypto and Blockchain Companies to Fight Patent Trolls

Jack Dorsey’s payment company Square has announced that it has successfully launched an initiative called “Cryptocurrency Open Patent Alliance,” dedicated to empowering blockchain and crypto-driven companies in the technological sector and to protect them from patent hoarding trolls.

COPA for cryptocurrency technology advancement

Through this open-source alliance, Square hopes that the crypto technology sector could grow, innovate, and subsequently, better products could be put forth for all to benefit. The Cryptocurrency Open Patent Alliance (COPA) is designed to enable blockchain companies to join forces in order to prevent competing companies from locking up useful technologies through patents. According to Square, patent trolling – the practice through which a company attempts to stifle the competition and reap profits through court rulings by claiming patent infringement violation – would only hinder the technology sector and “stifle innovation.”

Proudly talking about his company’s new project, co-founder of Square Jack Dorsey said:

“Square is putting all of our crypto patents into a new non-profit org we’re calling the Crypto Open Patent Alliance, which will maintain a shared patent library to help the crypto community defend against patent aggressors and trolls. Join us! #bitcoin”

To become a member of the Crypto Patent Open Alliance, crypto entities and firms have to pledge to make their patents freely accessible for all other members through a shared community library. Any company working in the crypto field could join COPA, regardless of whether it possesses patents or not.

Square further explained by saying that the library served as a collective shield to protect against patent trolls and hoarders. The payments company has been reported to have ventured into the cryptocurrency sector in 2018. It has already led by example by placing its own crypto patents in the new library. Square is hoping that by joining forces, this could benefit the whole crypto and blockchain community, fueling technology growth and innovation.

Patent troll claims he is Satoshi

Among the many patent trolls out there, self-proclaimed “Bitcoin founder” Craig Wright figures among one of the most controversial ones in the industry. The Australian programmer has long claimed that he was Satoshi Nakamoto, the anonymous creator of Bitcoin. He has frequently been accused of patent hoarding, securing multiple blockchain patents.

Earlier this year, Wright along with his business partner reportedly mined 1.1 million Bitcoin, estimated to be worth over $8 billion. However, when Kleiman passed away, Wright was caught in a legal battle with his former business partner’s brother, Ira Kleiman, who claimed that he was entitled to half of the Bitcoin mining empire left behind by his brother.

Ethereum co-founder Vitalik Buterin had in the past addressed Craig Wright over a heated debate on patent hoarding, calling out the self-proclaimed Bitcoin founder and saying:

“If you’re bragging about how many ‘blockchain patents’ your country/company/organization has, you don’t understand blockchains.”

Different Stances on Cryptocurrency Risk Revealed, Many Still Link Crypto to Cyber Fraud

In a global survey on cryptocurrency understanding comparing perspectives of banks, governments, and professionals in the cryptocurrency industry, findings revealed that many were divided in their stance on digital currencies.

556 respondents in the cryptocurrency industry were surveyed, including banks, financial intelligence units, cryptocurrency exchanges, and banking professionals. Authorities worldwide were questioned, and results revealed general disagreement on the safety of cryptocurrency use.

While it should come as no surprise that the cryptocurrency industry exuded the most positive sentiments regarding crypto, governments and traditional financial institutions still viewed crypto as a gateway for crimes such as money-laundering, dark web activities, terrorist funding, and more. 70% out of 556 participants indicating this as a main concern.

The survey showed that cybercrime activities fueled by digital assets translated to around 1% of all transactions. However, with digital transactions on the rise, it also indicated that many criminals leveraged crypto to bypass the scrutiny of financial regulators. The report read:

“While cryptocurrency use by criminals only accounts for around 1% of all transactions, it remains an attractive venue for those avoiding the traditional financial system.”

For professionals in the cryptocurrency industry, they were more likely to view crypto assets as a potential integration for business purposes in the future.

The survey, conducted by the Association of Certified Anti-Money Laundering Specialists in collaboration with the Royal United Services Institute, also showed that most respondents viewed cryptocurrencies as being too volatile to be an alternative for fiat currencies for the time being.

However, despite the skepticism around cryptocurrency for financial inclusion, many were open to the idea that cryptocurrencies may be highly relevant in the future. The findings read:

“Respondents predict both an increased role for cryptocurrency in day-to-day payments in the future as well as a decrease in cryptocurrency use for illicit activities, especially as compared to how it is viewed now.”

In the report, most have indicated that Bitcoin was the most known cryptocurrency asset, but since cybercriminals have used as payments for trafficking drugs and weapons on the Silk Road, it appears as though its reputation has been marred.

According to Chainalysis, of the $1 trillion cryptocurrency transactions that were processed in 2019, only 1.1% of them were found to be illicit.

Raoul Paul Hails Crypto Industry, Calls it "Anti-Fragile Financial System."

Raoul Paul, a popular crypto advocate who doubles as the founder and Chief Executive Officer of Global Macro Investor and Real Vision Group, praised for the broader cryptocurrency industry, following the three-week-long downturn in the market.

Raoul Paul hailed the resilience of the digital currency ecosystem and its ability not to crumble as over $1.02 trillion were wiped out as low regulation could not prevent the liquidation shocks. Paul praised the broader cryptocurrency industry after the three-week-long downturn in the market.

The cryptocurrency industry has been hit on every side over the past several weeks. Beginning with the Xinjiang flooding that drastically impacted Bitcoin mining to Tesla reversing its decision to accepting Bitcoin payments, the market has waded through from negative news to the other.

The biggest blow in years came as Chinese regulators banned crypto transactions for the country’s financial institutions. The Asian giant also highlighted plans to send miners packing as talks on energy conservation are gradually becoming a concern.

These bouts of negativities pushed the global crypto market cap from a high of about $2.6 trillion to a low of $1.5 trillion. Yet, Raoul Paul noted that all key players did not suffer from the volatility.

“Crypto had a major, major VAR-shock test, and NOTHING happened. Leverage liquidation was offset by over-collateralization. No one was left holding the baby. No firm went under. The Fed didn’t need to step in. Defi didn’t break and carried on near normal,” He said in a Twitter thread, adding, There were no daisy chains of collateral losses. There was no collateral pressure. Stablecoins remained stable. A few exchanges went down for an hour or two. No exchange big losses occurred, no need to mutualise losses either. No protocol failed. No firms needed rapid funding.”

This resilience, according to Raoul, makes the crypto industry exhibit a zero systemic risk compared to the world of traditional finance. Drawing on these, he declared the industry as an “anti-fragile financial system that doesn’t break in times of stress, where ownership of assets is clear, and losses are not mutualised to taxpayers.”

Many industry heavyweights, including but not limited to Mark Cuban, Ray Dalio, Michael Saylor, and others, helped cushion the fate of crypto with their open revelation of investments in digital assets during the most challenging period for the industry in the past couple of years.