ethereum blockchain

IKEA Permits Invoice-Payment through Ethereum Blockchain

Nordic Store, an Icelandic retailer, recently purchased goods from IKEA Iceland, and the transaction was settled through the Ethereum blockchain. The operation was facilitated by Tradeshift, a supply chain payments company, and Monerium, a licensed e-money for blockchains firm.

Tradeshift availed the platform needed for the transaction, whereas Monerium provided smart contracts on the Ethereum blockchain.

Blockchain-Powered Payments now a Reality

The successful transaction between IKEA and Nordic Store shows that government regulated, programmable e-money is ready for mainstream adoption.

Gert Sylvest, Tradeshift’s co-founder, asserted that this was a positive move because it could trigger considerable changes in the market.

He noted:

“Programmable money regulated by governments will become the foundation for e-commerce payments because they enable so-called ‘smart contracts.’ Smart contracts have many use cases. For example, they can be used to generate ‘Smart Invoices’, which are invoices that basically settle themselves.”

On the other hand, Sveinn Valfells, Monerium CEO, asserted that the successful transaction came in handy in showing blockchain’s capabilities.

Valfells stipulated:

“As the first company authorized to issue e-money on blockchains, we are delighted to demonstrate the benefits of blockchains for mainstream B2B transactions using a legal form of digital money.”

IKEA’s decision to use Ethereum blockchain in the invoice payment was made possible by a landmark administrative decision to permit the issuance of digital fiat by Monerium within the European Economic Area.

Image via Shutterstock

Ethereum Addresses Interacting with DeFi Protocols Surge to 2.91M in Q2: ConsenSys Report

The Decentralized Finance (DeFi) ecosystem built around the Ethereum blockchain is seeing an increased embrace, according to the quarterly report from ConsenSys. This has culminated in an upsurge in the total number of addresses linked to DeFi, which grew by 65% to 2.91 million from the end of Q1 to the end of Q2.

Metrics to Measure Ethereum’s Growth

The growth in the Ethereum blockchain per the ConsenSys report can be measured by additional metrics beyond the number of addresses recorded. The activities on the Metamask wallet are also a viable indicator of the DeFi activity/growth.

the report reads:

“Another metric to gauge DeFi usage is the number of monthly active users on MetaMask, which is the leading non-custodial wallet on Ethereum. By June 1, 2021, MetaMask monthly active users surpassed 7.3 million. This is in part due to the growth of DeFi applications on other Ethereum Virtual Machine (EVM) compatible networks that users can access via MetaMask, like BSC and Polygon,”

The report also highlighted that Ethereum-based stablecoins, fiat currency pegged digital tokens whose value does not fluctuate, have surged 60% from the end of Q1 2021. “Stablecoin supply continued to grow at a rapid pace in Q2 2021, now representing a total issuance of nearly $65 billion,” according to the report.

The Ethereum blockchain has seen other innovative protocols emerge with the big names, including lending protocol Aave and decentralised exchange (DEX) Uniswap. The report noted that the total transaction volume processed by combining these trading platforms in the second quarter came in at $343 billion.

Triggers for Increasing Growth: London Hardfork in View

The London Hardfork is just a few days away. The changes in Ethereum’s gas fee structure and the deflationary model the new upgrade will usher in can help reduce transaction fees and make the blockchain more usable.

Should this projection come through, the overall performance of the protocols built atop the Ethereum blockchain is bound to shoot up.

Ethereum Testnet Successfully Upgrades for Upcoming Shanghai Hard Fork

The Ethereum community is eagerly awaiting the upcoming Shanghai hard fork, which is expected to take place on the mainnet in March. In preparation for this event, the Ethereum blockchain’s Sepolia testnet underwent a successful upgrade on February 28th. The upgrade, dubbed “Shapella”, was designed to simulate the upcoming fork and test its functionality.

One of the most significant changes in the Shapella upgrade is the ability for validators to withdraw their staked Ether (stETH) from the Beacon Chain back to the execution layer. Previously, validators needed to stake a minimum of 32 ETH to validate on the Ethereum blockchain. However, with this upgrade, validators will now be able to withdraw rewards in excess of 32 ETH and continue validating. Those who wish to fully withdraw their staked ETH can take all 32 ETH plus rewards and cease validating.

The successful implementation of the Shapella upgrade on the Sepolia testnet is an encouraging sign for the Ethereum community, as it indicates that the upcoming Shanghai hard fork will likely proceed smoothly on the mainnet. However, before the hard fork can go live on the mainnet, it must first be released on the Ethereum Goerli testnet.

The Goerli testnet is an important testing ground for Ethereum upgrades, as it allows developers to test new features and upgrades in a sandboxed environment before deploying them on the mainnet. The release of the Shapella upgrade on the Goerli testnet is expected to commence in March, giving developers ample time to test the upgrade and ensure its compatibility with the Ethereum ecosystem.

Overall, the successful upgrade of the Sepolia testnet for the upcoming Shanghai hard fork is a promising development for the Ethereum community. With this upgrade, validators will have more flexibility in managing their staked ETH, which will ultimately lead to a more efficient and secure network. As the Ethereum ecosystem continues to evolve and grow, the community can look forward to more exciting upgrades and developments in the future.

FTX Japan Launches Blockchain-based Proof of Solvency to Enhance Transparency and Security

In an effort to enhance transparency and bolster the trust of its customers, FTX Japan has unveiled a blockchain-based technology known as Proof of Solvency (PoS). This initiative was announced by Seth Melamed, the COO of FTX Japan, through a series of tweets on September 28, 2023. The newly introduced Proof of Solvency mechanism enables the company to prove, in an unalterable manner, that the reserves of the exchange surpass the assets held in custody for customers.

Proof of Solvency (PoS) is a method utilized to demonstrate a company’s capability to meet its long-term financial obligations, merging traditional financial audit practices with blockchain transparency. Highlighted by ICONOMI’s blockchain audit conducted by Deloitte on April 5, 2018, PoS comprises two core components: Proof of Liabilities and Proof of Reserves. Through the Merkle Tree approach, individual users can verify their account balances and overall liabilities without disclosing personal information, ensuring data integrity. Proof of Reserves entails disclosing total reserves encompassing digital and fiat assets, verified through blockchain addresses, bank, and exchange account information. Deloitte’s audit, covering 80 digital assets, confirmed ICONOMI’s $210.2M reserves surpassing its $133.6M liabilities, thus establishing its solvency. This PoS framework enhances transparency, security, and trust among stakeholders while maintaining user privacy.

The PoS is a significant stride towards addressing a central issue in the cryptocurrency market and, by extension, traditional financial markets. The technology aims to provide market participants, who have entrusted their assets to exchanges or financial institutions, with increased safety and information transparency. By doing so, it tackles the technical problem of information provision in a secured and transparent manner, which is a matter of concern for many in the industry.

FTX Japan has been ardently adhering to legal regulations by strictly managing the segregation of customer assets. However, with the introduction of PoS, the reliance on subjective verification or claims by the management has been replaced with cryptographic proofs such as Zero-Knowledge Proofs. These proofs and the corresponding results are reflected on the blockchain, thus allowing an objective verification of the asset management status by the customers of FTX Japan.

The PoS service is available to all customers of FTX Japan as well as the Liquid Japan platform. Customers can easily verify their balances with a mere three clicks via the Liquid GUI. Furthermore, details of the PoS are scheduled to be published weekly on the Ethereum blockchain, according to Melamed. This initiative is seen as a vital step towards resumption, and FTX Japan believes it to be a high-quality service for all participants in the cryptocurrency ecosystem.

The launch of the Proof of Solvency by FTX Japan underscores the growing importance of transparency and trust in the evolving digital asset marketplace. By leveraging blockchain technology, FTX Japan has established a robust mechanism to provide clear evidence of its financial solvency to its customers, thereby setting a positive precedent in the industry for security and transparency.

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Immutable's zkEVM Marches Towards Mainnet with a Series of Milestones

According to official Twitter account, Immutable has set the stage for gaming on the Ethereum blockchain with its recently launched zkEVM Testnet, accentuated by the involvement of @0xPolygonLabs. The progress is underscored by over 50 games that have earmarked their development on the Immutable zkEVM platform, showcasing a growing ecosystem even before its Mainnet launch.

The journey towards a fully functional Mainnet is highlighted by a series of methodical steps:

1. Testnet Launch (August): The initial phase saw the launch of the Immutable zkEVM Testnet which witnessed over 20,000 active addresses engaging in more than 100,000 transactions as developers started the groundwork for their gaming projects.

2. Testnet Re-Genesis (November): A significant transition was the re-genesis of the Testnet, upgrading the chain’s inaugural EVM client from Polygon Edge to Geth. This strategic move is aimed at aligning Immutable zkEVM closely with Ethereum, ensuring full compatibility with Ethereum’s extensive tooling ecosystem.

3. Mainnet Launch (December – January): The subsequent phase will unveil the Immutable zkEVM Mainnet, with an initial invitation to developers to explore the new chain in groups, prior to a public launch.

4. Dedicated App Chains (2024): Looking ahead, 2024 will see the introduction of dedicated app chains, offering a similar tech stack and capabilities as Immutable zkEVM but with distinct customization options. The transition to Geth is highlighted as a pivotal step towards ensuring optimal liquidity, accessibility, and security for each app chain.

5. Prover Integration (2024): A crucial milestone will be the incorporation of the zk-prover, embodying the essence of “zk” in zkEVM, and facilitating a trustless bridge between Ethereum and Immutable zkEVM.

Immutable’s vision is not just about creating a new blockchain but fostering a burgeoning ecosystem. The over 50 games committing to build on Immutable zkEVM is a testament to the platform’s potential to be the nexus of blockchain gaming on Ethereum.

Developers are urged to commence building on the live zkEVM Testnet to gear up for the upcoming Mainnet launch, as indicated on Immutable’s official developer portal.

Court Upholds OFAC's Designation of Tornado Cash Under IEEPA

The United States District Court for the Northern District of Florida issued a decision concerning the designation of Tornado Cash by the Office of Foreign Assets Control (OFAC). The case, identified as Case 3:22-cv-20375-TKW-ZCB, revolved around the designation of Tornado Cash under the International Emergency Economic Powers Act (IEEPA). The IEEPA authorizes the president to declare national emergencies to handle unusual foreign threats to the United States’ national security, foreign policy, or economy. Utilizing this authority, the president had declared national emergencies concerning malicious foreign cyber-enabled activities and North Korea’s nuclear missile program.

Tornado Cash, a service utilizing smart contracts on the Ethereum blockchain to provide a degree of anonymity to transactions, was designated by OFAC on August 8, 2022, and later re-designated on November 8, 2022. This designation was challenged by the plaintiffs, who are users and a non-profit cryptocurrency advocacy organization. They argued that the designation of Tornado Cash’s core software tool exceeded OFAC’s statutory authority since it is mere computer code and no foreign entity has a legally recognized “property interest.” The designation listed 91 internet addresses affiliated with Tornado Cash, aiming to block and prohibit transactions through these addresses.

The Court’s decision upheld OFAC’s designation. It rejected the plaintiffs’ argument, stating that the operative language in the IEEPA is “any interest,” not “property interest” or “ownership interest.” According to the Court, Tornado Cash’s founders, developers, and Decentralized Autonomous Organization (DAO) have an indirect beneficial “interest” through the service’s usage, which increases the value of Tornado Cash’s governance token, TORN. The Court explained that an increased usage of Tornado Cash enhances the value of TORN, held by these entities, and thus establishes a financial “interest” for the purposes of the IEEPA.

Furthermore, the Court found that OFAC’s decision was not arbitrary or capricious and was adequately justified based on the foreign-affairs rationale, particularly given Tornado Cash’s involvement in laundering cryptocurrency for the benefit of the North Korean government. The Court also dismissed the plaintiffs’ First Amendment claims, stating the designation didn’t implicate Plaintiffs’ First Amendment rights as there are other privacy tools available for them.

In conclusion, the Court denied the plaintiffs’ motion for summary judgment and granted the defendants’ cross-motion for summary judgment, thereby upholding OFAC’s designation of Tornado Cash under the IEEPA. This judgment underscores the legal challenges faced by privacy-centric blockchain services in light of national security and foreign policy concerns.

Coinbase is challenging the U.S. Treasury over the recent tornado cash sanctions

Crypto Coinbase has challenged the decision of the United States Treasury Department to include Tornado Cash, a decentralized software project, on the list of Specially Designated Nationals and Blocked Persons (SDN). This action, which was brought up in the Western District of Texas, marks a serious clash between the rapidly expanding cryptocurrency industry and the federal regulatory authorities.

Tornado Cash is a platform that runs on the Ethereum blockchain that offers immutable smart contracts that permit anonymous cryptocurrency transactions. This protects the users of Tornado Cash from having their privacy compromised. This piece of software has emerged as a central issue in the ongoing discussion on the appropriate level of government oversight of the digital space.

According to the allegations made in the complaint filed by Coinbase, the action taken by the Treasury Department to penalize Tornado Cash goes beyond the scope of the legal power granted to it under the International Emergency Economic Powers Act (IEEPA) and the North Korea Sanctions and Policy Enhancement Act. The plaintiffs contend that the usual definitions of a “national” or “person” do not apply to Tornado Cash since it is a decentralized organization, and these activities are governed by those definitions. In addition, they argue that the smart contracts in issue do not qualify as “property” in the legal sense since they cannot be changed and no one owns them. Furthermore, they claim that Tornado Cash does not have any legal, equitable, or beneficial stake in the smart contracts in question.

The judicial procedures shed light on the difficulty of governing blockchain technology and the ramifications it has for individual privacy and rights. The plaintiffs contend that the inclusion of Tornado Cash on the SDN List by the Treasury unfairly criminalizes the use of a privacy-focused software application, which impacts law-abiding persons. The plaintiffs have filed a lawsuit to challenge this designation.

As the case moves forward, it exemplifies the rising contradictions between the essential need for regulatory control in the bitcoin industry and the basic rights of free speech and privacy. The verdict in this case has the potential to establish an important precedent for the future regulation of cryptocurrencies as well as the wider use of economic penalties in the era of digital technology.