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Ethereum

Ethereum to Join Hyperledger Consortium as First Public Blockchain

Ethereum is expected to be the first public blockchain to be accepted on Hyperledger once the technical steering committee gives an okay to the adoption of ConsenSys’ Pantheon project.

Pantheon Project to be Part of Hyperledger

Pantheon, which is created by PegaSys, is a collection of Ethereum-based services that is built on Java. The Pantheon Ethereum client is important in developing enterprise applications that have features such as permissions and privacy.

If the proposal, which was sent on August 8, gets approved, the Pantheon project will change its name to HyperledgerBesu, besu meaning foundation or base in Japanese. With the approval, Pantheon’s protocol will be under Hyperledger, thus becoming part of a collection of projects such as HyperledgerSawtooth by Intel (NASDAQ:INTC) and Hyperledger Fabric by IBM (NYSE:IBM).

It is important to note that this will make Pantheon the first public blockchain to be incorporated under the umbrella of Hyperledger. Pantheon code will thus be published on the GitHub page and be open to contribution from other developers that are involved in the projects already. Besides the Ethereum public network, Pantheon also runs on private and test networks such as Gorli, Ropsten, and Rinkeby.

Burrow Code on Ethereum Virtual Machine

The foray of Hyperledger into Ethereum started with the Monax “Burrow” codebase, which was the first Ethereum Virtual Machine blockchain to be approved for the Hyperledger project. The approval brought Monax’s protocol under Hyperledger, joining Fabric and Sawtooth Lake. The Burrow code, just like Pantheon project, was also published on the proprietary GitHub pages and was open to contribution from various developers within the project.

>> Understanding the Difference Between Proof of Work and Proof of Stake

Then an incubation agreement gave Monax access to the Ethereum Virtual Machine, which is the part of the Hyperledger network that brings together the bytecode as well as executes the scripts on the network. Approval for incubation meant that Monax could use the licensed Apache version of the Ethereum Virtual machine to pave way for the development of other complex smart contracts.

The latest proposal comes days after R3, which is Hyperledger’s competitor, announced that it is hiring to expand its London office as well as open a second engineering hub.

Featured image: DepositPhotos © akulamatiau

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Libra

Investors Consider Cutting Ties with Facebook’s Libra Amid Regulatory Scrutiny

At least three investors in Facebook’s Libra cryptocurrency are considering disassociating with the currency following intense regulatory pushback.

According to a report published in the Financial Times on Friday, some backers are fearful that the spotlight placed on the social media giant’s proposed cryptocurrency will also bring their own separate, independent businesses into disrepute. Two founding partners have allegedly held discussions with regard to what the “right next steps” should be for their investment. “I think it’s going to be difficult for partners who want to be seen as in compliance [with their own regulators] to be out there supporting [Libra],” one of the founding partners said.

Libra has come under strong criticism and skepticism from regulators within the European Union and the US Congress, who have questioned how they are meant to trust Facebook (NASDAQ:FB) given its recent history of misuse of user data, which landed the company with a $5 billion USD penalty. So intense has the criticism been that Facebook was forced to issue a statement last month warning investors that the stablecoin may never be released.

Facebook has reportedly pushed back against the doubting investors, which some have dubbed “the crypto mafia,” arguing that it is “tired of being the only people putting their neck out.” 28 companies have come together to establish the Libra Association, which will take over governance of the coin, and includes some very recognizable names such as Mastercard (NYSE:MA), Spotify (NYSE:SPOT), Uber (NYSE:UBER), and PayPal (NASDAQ:PYPL). Each company had to pay $10 million USD in order to participate in the venture. The three aforementioned doubters remain anonymous.

>> Japanese Exchange Coincheck is All Set to Launch IEO Platform

Regardless of the outcome of this situation, it will be several years before Libra is fully operational. “It will take years to establish the Association’s governance documents and more years to identify the initial payment use cases the platform will support and the regulatory constraints that the platform must address specific to those use cases,” said Tim Sloane, vice president of payments innovation at Maynard.

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Bitcoin

Bitcoin Adjusted Dominance Soars | Bullish Sign for Times to Come?

Over the last couple of years, the crypto space has grown considerably, and nowadays there are around 2,500 cryptocurrencies in addition to Bitcoin. However, BTC still remains the most valuable and the biggest cryptocurrency in the world in terms of market capitalization. That being said, it is also important to note that over the years, there have been some altcoins that have threatened to upstage the coin as the most dominant cryptocurrencies in the market. Despite that, Bitcoin stands tall, and its domination of the wider crypto market remains as strong as ever.

Bitcoin’s Popularity is Huge

In 2019, BTC and some other coins went on a remarkable rally during the first half of the year that seemed to be on track to match the rally in late 2017. While some cryptocurrencies did manage to gain more than what Bitcoin did, the dominance of the biggest crypto in the world remains unparalleled and, in fact, its dominance over the market increased manifold.

The number of cryptocurrencies that outperformed Bitcoin stands in the single digits and considering the fact that there are 2,500 cryptocurrencies in the world, that number is very low. Moreover, those tokens do not have the sort of market cap to threaten Bitcoin’s dominance in any way, shape, or form.

>> Ethereum to Join Hyperledger Consortium as First Public Blockchain

According to the Bitcoin market cap dominance metric, its market cap dominance has now grown significantly and stands at a whopping 68%. This is a clear indication of the sort of clout that BTC now enjoys and it is likely that this dominance is going to continue in the foreseeable future. In this regard, it is also important to point out the sort of remarkable comeback that Bitcoin has managed to make. Back in December 2018, the market cap dominance of Bitcoin stood at only 32%; however, since January, the cryptocurrency has been on a different plane altogether when compared to the altcoins.

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Coincheck

Japanese Exchange Coincheck is All Set to Launch IEO Platform

The world of cryptocurrencies has come a long way since the early days of this decade, and nowadays it is a much more structured space, although regulation is still being awaited by many people in the crypto sphere. Nowadays there are highly sophisticated crypto exchanges and today we’ll be talking about one such example: Coincheck.

Japan has been a shining light when it comes to innovations in the crypto sphere, and over the years, plenty of new innovative processes have originated from the country. In a new development, the Japanese crypto exchange Coincheck is now working on offering a service known as an IEO or an initial exchange offering.

Key Details

Coincheck has commenced a feasibility study into the whole thing and wishes to launch a major fundraising business that will be powered by utility tokens. Back in 2017 or earlier, Initial Coin Offerings or ICOs had been the most popular method of raising money for developers as well as companies trying to launch a new crypto token. However, that has now changed completely, and many developers are now looking to use IEOs to raise money for their projects. According to reports, many companies have managed to raise millions of dollars through this particular method.

>> Bitcoin Adjusted Dominance Soars: Bullish Sign for Times to Come?

This is all set to be the best method of fundraising for companies trying to get into cryptocurrencies for the simple reason that ICOs now stand discredited as a method of raising money. Over the years, plenty of spurious as well as totally fictitious projects made ICOs and people who invested their money oftentimes lost everything. Hence, it is believed that the IEOs could now be the way to go since at the end of the day, it offers a lot more information to investors with regards to a particular project.

What do you think about the Coincheck IEO?

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proof of work

Understanding the Difference Between Proof of Work and Proof of Stake

Many have heard of proof of work and proof of stake, but don’t necessarily know the difference. Why does this matter? Because the difference is huge—it’s the difference between competing in a drag race and being elected class president.

Different blockchains use different consensus mechanisms to preserve order and keep things running smoothly. Proof of work is the original gangster of consensus, having driven the Bitcoin blockchain (and many others) since 2009. Proof of stake emerged in 2011 as an energy-friendly alternative for accomplishing the same task, and it just happens to work completely differently.

If you’re reading this guide, we’re going to assume you’re already familiar with some big-picture crypto concepts like mining and decentralized ledger technology. Proof of work and proof of stake are like two different kinds of engines that drive different blockchain systems, and by the time you finish reading this, you’ll have a clear understanding of how they compare and contrast with each other.

Proof of Work Sees Every Node Work All the Time

Miners in a proof of work system are competing against each other to solve cryptographic puzzles. These puzzles are extremely hard to solve—the more miners there are, the more difficult the math becomes—but it’s rather simple to establish when a miner has a correct answer. The rest of the network verifies that correct answer, and the miner collects a financial reward for adding a new block to the blockchain.

It’s not unlike an extremely competitive tug of war using mathematics. There is a zero-sum element to this game: only one miner gets paid, so people are incentivized to deploy supercharged number-crunching machines in order to establish a lucrative competitive advantage. Proof of work systems consume lots of electricity as a result—Bitcoin on its own uses an amount of electricity on par with some small countries. This is because miners are incentivized to use high-powered computer equipment and squeeze out every efficiency they can, even joining so-called “mining pools” to collaborate with other miners and share their rewards.

Proof of Stake Chooses One Node to Work at a Time

Proof of stake is more like a profitable game of hot potato. The network chooses just one node to add a new block to its blockchain, and they are heavily incentivized to do so in good faith. There can be serious negative financial repercussions if validators in proof of stake consensus get meddlesome. These people have pledged a figurative security deposit, predictably called a “stake,” which is simply an amount of cryptocurrency worth real money. The larger their stake, the more likely they are to be elected to verify new blocks, so these network participants are highly inclined to act in good faith.

>> Ripple Announces New Partnership with UK Remittance Firm

If the name of the game is to reduce the energy consumption burden, then proof of stake works by shifting the attention from expensive hardware to high-security deposits.

Both Systems Work to Effectively Prevent the So-Called “51% Attack”

If a bad actor was able to control more than half of a decentralized cryptocurrency network, they could potentially reverse transactions, but these “double-spend attacks” would be detected immediately. Even with a hypothetical controlling share of the network, a 51% attacker can’t change the rules of the game. Mining invalid transactions would fork the blockchain. Not only would they exclude themselves from honest participants, but the community could solve the problem immediately by switching to a new mining algorithm that rendered the attacking hardware useless. It’s probably not worth it. In any case, proof of work and proof of stake both work to guard against this from happening.

The power required to control more than half of the Bitcoin network, for example, is completely unrealistic to wield. While it is theoretically possible to amass that much computational firepower, the reward waiting on the other side of that challenge isn’t worth the expense. By the time someone controlled more than half of the network’s mining power, they’d incur so much electricity and hardware costs that the financial reward wouldn’t sufficiently offset it.

The incentives are even more clear-cut for proof of stake. While there are some mechanisms at play to prevent the largest stakeholders being selected time and time again to add new blocks on the blockchain, the simple truth is that the size of your stake plays a significant role. The size of your stake is mostly proportional to your chances of being selected to make a new block. So rather than amass 51% of the computing power on a network, you’d need to acquire 51% of a particular cryptocurrency’s market cap. This is just as prohibitively expensive, although in a different way.

Neither is Better or Worse—They’re Just Different

Proof of work requires lots of computing power in order to be successful, while proof of stake requires a large security deposit. There are comparable pros and cons for each, but they both work to preserve the essential consensus that makes decentralized blockchain systems work. The only question is this: which game do you want to play? Would you rather use supercharged mining hardware, whether at home or via the cloud? Or would you rather part with a large stake in the network electing your node to forge new coins?

In any case, you’ve got to make a contribution to a network in order to make a profit from it. Do you want to drive a race car or run for class president?

This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission!

Featured image: DepositPhotos © Rawpixel

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