In the intricate world of cryptocurrency, not all algorithms are forged equal. The proof-of-work (PoW) consensus algorithms like Kheavyhash, Scrypt, Blake3, SHA-256, and Ethash are the linchpins that not only secure but also empower the blockchain with the integrity and trust that underpin several of today’s leading digital currencies. Understanding Proof-of-Work and Its Variants Proof-of-work […]
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FTX Seeks Customer Consensus: Multi-Billion Dollar Compensation Plan Goes To Vote
FTX, the failed crypto exchange, will seek customer approval for its Chapter 11 plan to compensate victims and resolve government penalties stemming from the platform’s fraudulent collapse in November 2022.
The decision by Judge John Dorsey marks a significant step forward in the two-year-long bankruptcy proceedings, as voting by creditors plays a pivotal role in restructuring efforts. While FTX’s plan has gained support from key customer committees, a vocal group remains opposed and demands substantial revisions.
FTX Offers Customers 119% Asset Recovery
According to Bloomberg, under the proposed plan, most FTX customers are expected to recover 119% of their assets as of the day the company filed for Chapter 11 in November 2022. Other creditors may receive up to 143% of their owed amounts.
FTX’s legal team maintains that bankruptcy law necessitates valuing claims based on their value at the time of filing, despite subsequent increases in cryptocurrency prices.
FTX’s decision to solicit votes from its customer base stems from the desire to obtain feedback from previously uninvolved parties regarding the repayment plan.
Additionally, the company is still negotiating with federal authorities and exploring options to utilize government claims against FTX to compensate affected customers.
Notably, FTX has already settled a billion tax claim from the US Internal Revenue Service. Under the settlement terms, the firm will pay the IRS 0 million within 60 days of implementing the proposed restructuring plan.
The settlement allows FTX to pay a fraction of the amount claimed by the IRS, clearing the way for the exchange to distribute significant customer recoveries.
The IRS will also receive a lower priority claim of 5 million, which will be paid on a subordinated basis to customers and other creditors, depending on the availability of funds. These details were outlined in a filing made by FTX in the US Bankruptcy Court for the District of Delaware.
SBF’s Fraud Conviction Shadows Bankruptcy Proceedings
FTX is currently monetizing its assets, as the platform reportedly lacked segregated digital assets directly connected to claims against the exchange. Instead, FTX possesses a collection of assets acquired using stolen customer funds, representing a complex challenge in the compensation process.
Customers have until August 16 to vote on the Chapter 11 plan. Judge Dorsey will then review and potentially approve the plan on October 7, considering the outcome of the customer vote.
FTX filed for bankruptcy after its founder, Sam Bankman-Fried (SBF), shut down the crypto trading platform in 2022 and relinquished control to bankruptcy professionals. Bankman-Fried subsequently faced a 25-year fraud conviction, which he recently announced he would appeal.
As of this writing, the exchange’s native token FTT is trading at .43, up 2% in the past 24 hours and just 27% year-to-date.
Featured image from DALL-E, chart from TradingView.com
TRON DAO at Consensus 2024 With Exclusive Whale Night Event
PRESS RELEASE. Geneva, Switzerland, June 7, 2024 – TRON DAO proudly marked its significant presence at Consensus 2024, held in Austin, Texas, as a 3 Block Sponsor. This premier blockchain and digital asset event brought together industry leaders, policymakers, and innovators to engage in crucial discussions shaping the future of the blockchain ecosystem. Consensus 2024: […]
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Supermoon, OORT, and Ammocrypt Are Hosting 800+ Founders, Builders, Investors During Consensus
PRESS RELEASE. Supermoon in collaboration with OORT, Ammocrypt, Sunrise Layer and Cointelegraph presents its second iteration of its most well known event this May 31st in Austin, Texas; Mansion on the Moon. This time the Supermoon team is going all out with the Venue, the mansion will feature the most curated spot for over 800+ […]
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Indian Finance Minister: Crypto Regulation Needs Global Consensus
Indian Finance Minister Nirmala Sitharaman advocates for global consensus on cryptocurrency regulation, highlighting the need for international cooperation, particularly within the G20. She noted that while Indian regulators have differing opinions regarding how to treat crypto, there is currently no significant confusion. Indian Finance Minister on Crypto Regulation Indian Finance Minister Nirmala Sitharaman stressed the […]
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Independent Presidential Candidate Robert F. Kennedy Jr. Joins Consensus as a Headline Speaker
PRESS RELEASE. May 7, 2024, Austin, TX – In less than four weeks, independent presidential candidate Robert F. Kennedy Jr. will take the stage in Austin, TX, at Consensus 2024, the world’s largest, longest-running, and most influential gathering that brings together all sides of the crypto and Web3 community. As an environmental lawyer, scion of […]
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Consensus Pause: Majority of Economists Predict No Rate Hikes for 2023, With Cuts Delayed Until March 2024
A newly published Reuters poll reveals that most economists concur: the U.S. Federal Reserve has likely capped its rate hikes. Yet, rate cuts aren’t anticipated until March 2024. This survey drops just as markets approach the annual Jackson Hole Economic Symposium scheduled for next week. All eyes are on Fed chairman Jerome Powell, as investors eagerly await his remarks.
Market Forecasts No Rate Cuts Through 2023; Powell’s Jackson Hole Remarks Could Shift Outlook
Following the recent uptick in the federal funds rate (FFR), the U.S. central bank is seemingly hitting the brakes. This sentiment is echoed by the lion’s share of economists surveyed by Reuters. Of the 110 economists polled, a staggering 90% – 99 of them – predict the rate will remain unchanged this September at the forthcoming Federal Open Market Committee (FOMC) meeting. Furthermore, about 80% opine that we won’t see any additional rate hikes for the remainder of the year.
CME Group’s Fedwatch Tool shows that the market is pricing in the belief that there will be no rate hike this September. There’s roughly an 89% probability of no changes at the September 22 FOMC gathering and an 11% chance that there will be a 25 basis point rise. Out of the polled participants, 23 anticipate one more rate hike this year, while a pair of economists foresee the FFR jumping twice more. Approximately, 48 out of 95, predict the Fed will maintain rates till the end of March.
Two economists bet a rate cut could take place by the end of 2023’s final quarter. “We have long seen a high threshold for cutting because Fed officials will want to minimize the risk they could regret cutting if inflation stays too high,” David Mericle, the chief U.S. economist at Goldman Sachs told Reuters. Predictions may change, however, after Fed chair Jerome Powell speaks at the Jackson Hole Economic Symposium on August 25. Investors are hoping Powell will shed light on policy for the end of the year.
CME Group’s Fedwatch Tool paints a clear market sentiment: a rate hike this September seems unlikely. The odds? An 89% likelihood that the Federal Open Market Committee (FOMC) will stand pat on September 22 and a slim 11% possibility of a 25 basis point ascent. Among those surveyed, 23 of them forecast a solitary rate increase this year, while two economists envision the FFR surging twice. Of the lot, nearly half, precisely 48 out of 95, believe the Fed will stay its hand on rate changes until March’s end.
Two financial seers are wagering on a rate decrease by the curtain fall of 2023. Goldman Sachs’ chief U.S. economist, David Mericle, conveyed to Reuters, “We have long seen a high threshold for cutting because Fed officials will want to minimize the risk they could regret cutting if inflation stays too high.” Yet, predictions might pivot post Fed chair Jerome Powell’s discourse at the Jackson Hole Economic Symposium on August 25. Investors are on edge, eager for Powell to illuminate the policy trajectory for the year’s end.
What do you think the Fed will do for the remainder of 2023? Do you expect a long pause? Do you expect rate cuts? Share your thoughts and opinions about this subject in the comments section below.
Ethereum scaling solution XDC Network presents XDPOS2.0, an enhanced consensus for scalability and forensics.
Scalability problems have plagued Ethereum, the second-largest blockchain network in the world, for some time now. The proof-of-work model’s inability to scale demonstrates that blockchains implementing this consensus process are limited to transaction throughput rates of a single digit.
It is evident to any developer who has attempted to create a widely utilized decentralized application that Ethereum isn’t nearly ready in its current form. The user experience is awful because transactions take a long time to clear, and every basic function must be paid for. Everything comes down to a generic “scalability” issue, and cost and poor throughput have been significant roadblocks to any severe adoption.
Ethereum has primarily decided on a course of action. Although Ethereum 2.0 is one of the most ambitious projects in the blockchain industry, it will be a significant step forward for decentralization if it succeeds as planned.
The Ethereum blockchain’s and other top blockchain platforms’ scalability issues have an inventive answer in the form of the XDC Network. The 108 Masternodes that make up the XinFin Delegated Proof of Stake (XDPoS) consensus architecture that powers the XDC Network enable cheap transaction fees and 2-second transaction confirmation speeds. Innovative methods, such as double validation, staking via smart contracts, and simple randomization procedures, ensure security, stability, and a trustless ledger.
The XDC Network supports all EVM-compatible smart contracts, protocols, and atomic cross-chain token transfers. Sharding, EVM parallelization, private-chain creation, and hardware integration are a few examples of new scaling strategies that will be continuously investigated and included in the Masternode architecture of the XDC Network. For both small and large organizations, it will be the perfect scalable smart-contract public blockchain for decentralized apps, token issuances, and token integrations. Currently, multiple projects are already built on XDC Network, and it can be found among the utilities of XDC on XinFin’s official website.
With its practical and secure consensus protocol, XDC Network addresses the traditional blockchains’ primary bottlenecks. Hence, XDC Network is a trustworthy Ethereum-compatible and Ethereum-competitive blockchain platform that offers a foundation layer for business blockchain applications and a strong ground for blockchain innovation at all levels.
A novel consensus engine developed exclusively for XDC, XDPoS 2.0, has been released in testnet. With a full year of beta testing necessary before the new protocol is scheduled to be implemented in the first quarter of 2023, XDPoS 2.0 is viewed as a significant milestone and by far the most complex upgrade since the XDC Network’s inception.
This upgrade, which is entirely backward-compatible in terms of APIs and is based on the most cutting-edge BFT consensus mechanism, will give the XDC Network military-grade security and performance while using minimal resources. Additionally, it will clear the way for the XDC Network’s future development. Multiple tools such as Origin – Token creation Platform, Remix, Explorer, Tools & documentations are available to help the newbies planning to build on XDC Network. Already, the developmental conversations are active on Xdc.dev, a community for blockchain developers. It acts as one of the resource centers for blockchain engineers, including a knowledge base, tools, and support.
VeChain Heads For Consensus Update, Can VET Price Lessen Bearish Pressure?
VeChain follows the general sentiment in the market and has experienced some relief across low timeframes. The crypto market trended below the critical support zone during the weekend but saw it bounce during today’s trading session.
Related Reading | Over 0 Million In Liquidations As Bitcoin Recovers Above ,000
Buyers have been able to push back bears in the short term but could still face further losses. At the time of writing, VET’s price trades at .02 with a 2% profit in the last 24 hours and an 11% loss in the last 7 days.
VET’s price trends to the downside on the 4-hour chart. Source: VETUSDT Tradingview
Despite the downside price action for larger cryptocurrencies, VeChain has managed to preserve its value over the past week. This cryptocurrency is on track to deploy a major update to its network which could be providing additional support.
The VeChain Foundation announced that the upgrade, dubbed Proof-of-Authority (PoA) 2.0, was successfully deployed on a testnet. The Foundation claims this milestone marks important progress towards a mainnet launch.
The update is set to remove the tradeoffs from the Nakamoto Consensus and Byzantine Fault Tolerance (BFT) consensus. The Foundation claims that this upgrade could use a new wave of “mass adoption” as the blockchain VeChainThor will provide its users with data finality and more scalability.
Designed to provide companies with a secure blockchain, use-case adaptive, and support corporate use cases. The VeChain community approved this consensus back in 2021, and once it’s deployed, will make this network one of the only blockchains running on a hybrid consensus.
The Foundation claims that PoA 2.0 will introduce a “finality gadget”, an add-on mechanism that will validate blocks twice. First with the Nakamoto consensus and then with the “finality gadget” to make transactions “impossible to revert”.
VeChain Foundation’s Chief Scientist Peter Zhou said the following on this update and its bullish case for the blockchain VeChainThor:
It’s a huge milestone for PoA2. With the finality gadget, VeChainThor blockchain is going to provide the state-of-the-art security while maintaining its high standard of performance.
VeChain Sitting On The Danger Zone
As VET’s price traded downside, analyst Justin Bennett claimed a revisit of the levels at .01 seemed “likely”. Bennett has been bearish on the crypto market and expects the total crypto market to continue its decline.
Related Reading | Bitcoin Long-Term Holder Loss-Taking Now Highest Since 2019
This could spell more pain for VET’s price, at least in the short term, but provide long-term holders with a buying opportunity as the network prepares to implement PoA 2.0. Bennett said:
This bounce looks weak so far. Most likely another bull trap before the next round of selling. I still think we see $TOTAL reach the 0-0B area before a relief rally. That’s 17-25% below current levels.
I've removed these bids as we'll likely see $VET visit 0.016 at a minimum. https://t.co/URERjQf0rS
— Justin Bennett (@JustinBennettFX) June 18, 2022
The Consensus Mechanism within Clover Finance
If you are curious about Clover Finance, you are not alone! Now listed on Coinbase, Clover Finance is no longer just a new player in the space, it’s a leading name in the DeFi space. In fact, Clover Finance is leading the interoperability phase for decentralized finance, bringing blockchain together to grow not only the Clover ecosystem, but increase the user-friendliness of DeFi and crypto as a whole.
Here is a breakdown of how this revolutionary new platform actually works:
Clover Finance and its Consensus Mechanism:
First of all, let’s break down blockchain. A blockchain is a system of recording information in a manner that makes it extremely difficult to change, hack, or cheat the network. Essentially the blockchain is a complex, fancy and way cooler version of a database of transactions. Instead of being stored in one place, copies of this database are distributed across an entire network of computers over the internet. They are connected with each other, but are not run by a central control point. Instead, they are decentralized and they follow exact rules in working with each other to keep the blockchain secure, decentralized and protected from bad actors. They also need an agreed upon way to deal with a single data value or a single state of the network. This is known as a consensus mechanism.
Polkadot provides scaling solutions through parachains. Its blockchain framework, Substrate, is ideal for building bridges between different blockchains so they can operate together. Clover Finance is a blockchain built on top of Polkadot with the very purpose of building those bridges in the world of decentralized finance (DeFi).
In Clover, there is a special kind of consensus mechanism called Nominated Proof-of-Stake or NPoS.
How the Clover Finance Consensus Mechanism Works:
Clover is built on top of Polkadot, giving the ability to build bridges between different blockchains. Using the standard system of Polkadot, there are two key members of NPoS: Nominators and Validators.
Validators are the computer nodes acting to provide the infrastructure and are responsible for the maintenance of the network.
Nominators are token-holders who contribute economically, by, as you may have guessed, nominating validators of their choice. The nominators are essentially rewarded when the Validators do their job to secure the network, along with the Validators. And if it was found that those Validators misbehaved, the Nominators are also penalized along with them as well.
An In-Depth Look at Clover Finance:
Let us look closer at the inner working of Clover Finance and its ecosystem:
ERC-20: Clover Finance is built using the ERC-20 token standard, which is a coding standard used within the Ethereum blockchain. This essentially gives the rules and actions that an Ethereum smart contract or token must follow and steps to be able to execute it.
Cross-Chain: Solana and Polkadot are in the background of Clover finance. Clover is building bridges between blockchains, and is fully interoperable with and harnessing the power of Solana and Polkadot.
Interoperability: Clover Finance has the capability of bridging blockchains together and is working to connect with and integrate with numerous wallets. The Clover wallet already supports Ethereum, Polkadot, Kusama, Binance Smart Chain, Avalanche, Fantom, and Edgeware. The Clover Finance team is working to continue to expand this regularly.
Multiple Swaps. Clover Finance wallet gives the user the ability to swap cryptocurrencies in all wallets that are supported. Other wallets can only perform one swap.
Ease of Use. With the Chrome Wallet Extension, you can literally just log into Clover Wallet via your email address on Google. This also works on the Brave Browser in the same way. With the amount of blockchains supported, and the swap features above, this takes many steps out of a complicated process where one has to go to an exchange, buy a cryptocurrency, swap, transfer to their wallet, etc.
NFT dApps. Clover is built as the ideal ecosystem to connect with dApps. The wallet can connect to dApps and supports holding NFTs.
The “Always On” Function. In Basic or Standard Mode, you can have the “always on” function on. Essentially, there is a function app running in the background, preventing the app from being idle, but also saving time when you go in and want to use it.
Social Media
Connect with Clover Finance and learn more across social media and the web here:
Website | Telegram | Discord | Twitter | Github | WhitePaper | Cloverwallet