Alexey Pertsev, a developer for Tornado Cash, has reportedly been indicted by prosecutors in the Netherlands. They accuse him of laundering .2 billion. Pertsev’s attorney confirmed the prosecutors’ intent to charge his client. According to Dutch prosecutors, while a crypto-mixing service is not “inherently illegal,” using it to launder criminal assets is punishable. Dutch Prosecutors […]
Bitcoin News
Developer Explains Why Meme Coins Are Shifting Base From Ethereum
Foobar, a code builder, criticizes Ethereum, accusing its developers of neglecting crucial improvements. Because of this shift, projects, including meme coin issuers, are adopting alternative protocols, including layer-2s and modern blockchains like Solana, which boast more features, mostly higher scalability.
Ethereum Developers Are Blocking Mainnet Updates
Taking to X, the developer claims that there have been no major mainnet improvements chiefly because such upgrades are being blocked by core and client developers. Specifically, Foobar cites the long-standing delays for features like Trie State Storage Optimizations (TSTORE) and Externally Owned Account (EOA) batch transactions. The developer also noted the lack of block gas limit increase since 2021.
The developer adds that the absence of main net updates and opcode improvements leading to the implementation of these proposals could be why decentralized apps (apps) launching on Ethereum are “bleeding tremendous value” due to high fees and limitations.
TSTORE and EOA batch transactions are proposals that, if they see the light of day, could see Ethereum scale better. Specifically, proposers of TSTORE forwarded a solution to address storage bloat to improve performance. On the other hand, EOA will enable the bundling of transactions from the same sender, reducing gas fees.
Meanwhile, Etherscan data shows that the block gas limit has been capped at around 30 million since August 9, 2021. Subsequently, Ethereum throughput remains low, and gas fees are higher, considering the high on-chain activity.
The failure of clients to integrate these proposals, the developer continues, makes Ethereum unusable for “any interesting app requiring moderate complexity.” Subsequently, many projects are migrating to layer-2s like Base, Arbitrum, Optimism, or entirely different blockchains like Solana and Avalanche due to limitations on the Ethereum mainnet.
Meme Coins Find Home In Solana And Others
As of mid-February 2024, more meme coin developers, reading from the popularity of emerging projects, are deploying from high throughput and low-fee platforms like Solana, Avalanche, and even Base. Meme coins like Bonk, Honk, and even the successful Bald on Base are examples.
Meanwhile, meme coin projects on Ethereum, like Pepe Coin (PEPE), appear to be losing market share as Shiba Inu, for example, launched Shibarium to offer its users lower transaction fees.
Foobar thinks the lack of improvements on the Ethereum mainnet is why Uniswap v4 has yet to launch. The new iteration of Uniswap, a popular decentralized exchange (DEX) powering Ethereum token swapping, is yet to release its latest version.
Based on existing documentation, v4 will include new features and functionalities, including Hooks. Supporters claim this tool will make the DEX more flexible, drawing more users once it goes live.
Developer Hails ETH Burning, Will Ethereum Break $3,000?
Péter Szilágyi, an Ethereum (ETH) developer, has lauded EIP-1559 and its ETH burning mechanism as “the great equalizer.” Taking to X on January 16, Szilágyi admired EIP-1559’s ability to “level the playing field between validators and regular users.”
Developer: EIP-1559 Is A “Great Equalizer”
Since the implementation of EIP-1559, Ethereum adjusted how users bid gas fees, introducing the “base fee,” which was burned or sent to an irretrievable wallet. So far, data from Ultrasound Money shows that over 3.9 million ETH have been destroyed.
In the last week alone, the Ethereum network automatically sent more than 21,100 ETH out of circulation, “burning” ETH’s supply.
Specifically, Szilágyi mentioned the advantage regular users have with EIP-1559. Through this implementation, validators (previously miners before Ethereum shifted to a proof-of-stake blockchain) no longer have the privilege of arbitrarily adjusting gas limits and transaction fees.
Earlier, that leeway created what the developer described as an “imbalance,” which made it tough for “regular users to compete.” However, following this implementation, everyone must adhere regardless of status as a validator, founder, or user.
With EIP-1559, the “base fee” adjustment is set at the protocol level. It is this base fee that the network burns, gradually making ETH deflationary, reading from the number of coins taken out of circulation since EIP-1559 went live in early August 2021. Even so, a sender can “tip” the validator, incentivizing them to prioritize validating a transaction.
Stability And Predictability Achieved, Ethereum Upsides Capped At ,000
Szilágyi’s comments reflect a growing consensus among Ethereum supporters regarding the positive impact of EIP-1559. Though a big percentage of EIP-1559 is fixated on the price impact of the proposal, there is more that it achieves.
Most importantly, from a user experience perspective, it is now easier for senders to predict how much they will pay for a transaction. This is crucial, especially when the network is congested. Additionally, though the Ethereum gas fee remains relatively high, EIP-1559, though considered a “bad idea” by Szilágyi, has stabilized the network.
ETH burning is attributed to reducing inflation in Ethereum, a network whose total supply is not capped like Bitcoin. Over the long term, prices might benefit from this proposal. However, prices are bullish in the short to medium term. Still, upsides are limited to around the ,000 psychological round number.
Bitcoin Price Omega Candle “Very Real” Says This Developer, Here’s Why
The Bitcoin price saw a spike in volatility due to the decision around the spot Exchange Traded Fund (ETF). Market participants await an announcement at any point during the upcoming days, which will likely result in further spikes in volatility.
As of this writing, the Bitcoin price trades at ,900 with a 1% profit recorded over the last 24 hours. Over the previous seven days, the cryptocurrency records a 3% increase, acting as the best-performing asset in the crypto top 10 by market cap.
Bitcoin Price Ready For A Massive Rally?
According to many analysts, the potential implications for the Bitcoin price should the spot ETFs get approval are “impossible” for the market to price in this event. Thus, the bullish effects of this approval can only impact BTC in the mid to long-term as capital enters the financial product.
On the other hand, volatility has been susceptible to sudden spikes, as mentioned above. In late 2022, any news related to the Bitcoin ETF moved the market by thousands of dollars, most notably, the report by the crypto news outlet Cointelegraph inaccurately announcing the financial product launch before receiving confirmation from the US Securities and Exchange Commission (SEC).
Developer Samson Mow claims this effect can benefit Bitcoin prices by pushing them beyond expectations. This week, two conflicting reports by analysis firm Matrixport pushed BTC back to critical support levels.
A similar effect might drive Bitcoin back above the ,000 area. Mow stated:
Bitcoin dropped k on some fake news from a no-name analyst. Imagine what happens when a dozen ETFs are approved and start smash market buying. You may think an Omega candle is impossible, but it’s very real.
Confidence In BTC Grows Stronger
In support of the bullish thesis, trading desk QCP Capital pointed at the recent leverage “washed out” triggered by the Matrixport reports. Over billion in long liquidations were triggered as BTC returned to the ,000 level.
However, the cryptocurrency climbed back and re-took these levels’ mid-area. In a report, QCP Capital stated the following regarding Bitcoin’s potential to see a stronger rally in the mid-term:
For now, the topside remains capped by resistance at the 46 – 48.5k region with support at the 40.5 – 42k region. In spite of the leveraged washout, BTC has climbed back up to 44,000 level. While we remain wary of a “sell the news” knee-jerk reaction to the downside, this resilient price action gives us more confidence in the medium-term bullish view into BTC halving towards Mar/Apr this year.
Cover image from Unsplash, chart from Tradingview
Developer Alerts Ledger Live Software Could Be Tracking User IDs, Apps and Balances
Rektbuilder, a developer, has stated that cryptocurrency hardware wallet company Ledger can track user identities, apps, and even cryptocurrency balances in the device through the use of Ledger Live, its wallet management software. The developer discovered this behavior while working on Lecce Libre, a lighter, less intrusive software for the hardware wallet.
Ledger Live Sends User Information to Ledger, Developer Alleges
Developer Rektbuilder alerted about the information that Ledger, the hardware wallet manufacturer, receives through its wallet management program Ledger Live. According to his findings, the software embeds checks for the ID of each device when installing or updating apps and firmware.
The developer, currently working on “Lecce Libre,” a less intrusive and lighter app to manage Ledger hardware wallets, warned that removing this verification code breaks the app, meaning that using it is mandatory. He stated:
I tried disabling the remote tracking and it’s impossible, it breaks if you do. Which means Ledger knows it’s you every time you plug the device in.
Previously, he had also reported having removed balance summary details involving network calls for asset balances. Rektbuilder stated that the Ledger Live made 2,000 network calls for “all sorts of unnecessary stuff,” having already removed them in Lecce Libre.
He escalated his concerns, stressing that due to the available recovery function that allows retrieving the private keys in the device, nobody can be sure these are not being read.
Emin Gün Sirer, founder and CEO of Ava Labs, also called on Ledger to address the issues presented by Rektbuilder. He stressed that Ledger “should be able to confirm or deny (1) if these claims are true, (2) if there’s a way to work entirely offline without tracking, and (3) if the private keys are readable from the secure element.”
Ledger, which recently faced an attack that caused users to lose 0,000 in assets, has contacted Rektbuilder, who reported they are now working with the wallet company to obtain feedback on the issues raised.
What do you think about Ledger Live’s alleged privacy issues? Tell us in the comments section below.
Bitcoin Developer Luke Dashjr Registers Ordinal Inscriptions Workaround as a Vulnerability
Luke Dashjr, Bitcoin developer and CTO of Mummalin, has registered a method that allows Ordinal inscriptions to be saved on the Bitcoin blockchain as a code vulnerability. The vulnerability, CVE-2023-50428, states that “datacarrier size limits can be bypassed by obfuscating data as code,” as Ordinal inscriptions do to embed images and other kinds of data directly onto the BTC blockchain.
Luke Dashjr Registers Bitcoin Vulnerability CVE-2023-50428
Luke Dashjr, Bitcoin developer and CTO of Mummalin, the company behind the Ocean mining pool, has registered the method that allows Ordinal inscriptions to embed data directly on top of the Bitcoin blockchain as a vulnerability. The vulnerability, registered as CVE-2023-50428, describes how the Ordinals protocol allows this data to be obfuscated and embedded into the chain.
The description of the so-called vulnerability explains:
In Bitcoin Core through 26.0 and Bitcoin Knots before 25.1.knots20231115, datacarrier size limits can be bypassed by obfuscating data as code (e.g., with OP_FALSE OP_IF), as exploited in the wild by Inscriptions in 2022 and 2023.
The National Institute of Standards and Technology’s (NIST) National Vulnerability Database (NVB), which hosts a copy of the Common Exploits and Vulnerabilities (CVE) list, gives this exploit a 5.3 score, identifying it as a “medium” threat.
Dashjr, who has already stated that Ordinal inscriptions are a bug and expects to get the issue fixed in the next release of the Bitcoin Core full node software, is facing enormous criticism from the Bitcoin community.
Other developers have conceptually rejected the fix for this “vulnerability,” already proposed as a patch for Bitcoin Core in September. Peter Todd, a Bitcoin Core developer who opposes this change, explained that:
It is very unlikely that miners will give up that source of revenue. Censoring those transactions would simply encourage the development of private mempools – harmful to small miners – while making fee estimation less reliable.
In the same way, Bitcoin contributor Sjors Provoost stated that the approach taken by Dashjr “does not create an incentive to use a slightly less harmful method to post ‘spam,’” encouraging programmers to find more innovative ideas to avoid the proposed filter.
Ocean, a Bitcoin mining pool, uses a fork of Bitcoin Core developed by Dashjr, called Knots, which has been criticized for censoring Samourai Wallet’s private transactions after applying this fix targeting Ordinal inscriptions.
What do you think about the Bitcoin CVE-2023-50428 vulnerability? Tell us in the comments section below.
Bitcoin Vulnerability Discovered By A Developer Has Been Flagged By The US Government
Last week, a Bitcoin developer Luke Dashjr raised alarm about a possible vulnerability in the network in relation to the Bitcoin Ordinals that could lead to a code exploit. After posting his findings to social media, Dashjr’s warnings were not taken seriously as community members believed it was a non-issue. However, the US government seems to be taking the vulnerability seriously, adding it to its vulnerability database.
Dashjr’s Finds Vulnerability In Bitcoin Network
Dashjr had first raised alarm about the bug in the Bitcoin network on December 6 through an X (formerly Twitter) post. As the developer explains, this bug was related to the BTC Inscriptions which have gained popularity in the last year. This capability has helped developers to create what could be referred to as Bitcoin’s version of non-fungible tokens (NFTs).
Elaborating on the mechanism of Ordinals, Dashjr explained that the Inscriptions were actually taking advantage of a vulnerability in the Bitcoin Core. Developers are able to hide their data as program code, thereby being able to bypass the preset limit on the size of extra data that can be included in BTC transactions.
Dashjr explained that he was working to fix this issue. However, the vulnerability remains as developers are still able to create inscriptions on the network. Even after being fixed in the “Bitcoin Knots v25.1,” the developer explains that the vulnerability still remains “in the upcoming v26 release.” As for when the vulnerability might be completely fixed, Dashjr said he hopes this will happen sometime in 2024.
As Bitcoinist reported, not everyone in the community agreed that this was actually a vulnerability. Some worried that if the ‘vulnerability’ is eventually fixed, Ordinals and BRC-20 tokens would disappear, to which Dashjr responded in the affirmative.
NIST Adds BTC Bug To Vulnerability List
Despite the Bitcoin community not taking the warning of the vulnerability seriously, the United States government has chosen a more proactive approach. The National Vulnerability Database which is under the government agency, the National Institute of Standards and Technology (NIST), has moved forward to add the vulnerability to its Vulnerability List under ‘Common Vulnerabilities and Exposures.’
The agency has assigned the vulnerability with the code CVE-2023-50428 after identifying that it could be a potential risk for the network, especially when it comes to security or integrity. This means the agency believes this could lead to an exploit in the Bitcoin network.
The very existence of Ordinals and BRC-20 tokens is already identified as one of the ways that this vulnerability is already being exploited. Naturally, the agency is looking to prevent other ways in which the vulnerability could be further exploited in a way that could cause harm to its users.
Bitcoin Developer Luke Dashjr States Inscriptions Are Exploits, Hints at Future Fix
Luke Dashjr, bitcoin developer and Mummolin’s CTO, has reiterated his negative opinion about Ordinal inscriptions, stating these leverage and exploit a vulnerability in the Bitcoin Core full node software implementation. Dashjr also hinted at correcting this “exploit” in an upcoming version of the Bitcoin node software.
Luke Dashjr Divides BTC Community, States Inscriptions Could Be ‘Fixed’
Luke Dashjr, a Bitcoin Core software developer and CTO of Mummolin, the company that operates the Ocean bitcoin mining pool, has criticized Ordinal inscriptions, a series of elements — images and others — that can be directly embedded onto the BTC blockchain.
Dashjr, who has been very vocal about his negative opinion of these inscriptions, referred to them as “spam” and as “exploits,” revealing that he had already fixed this “bug” in Bitcoin Knots, a node software maintained by himself.
Dashjr explained:
This bug was recently fixed in Bitcoin Knots v25.1. It took longer than usual due to my workflow being severely disrupted at the end of last year (v24 was skipped entirely).
Ocean, the recently launched bitcoin mining pool that acknowledged having filtered inscriptions since day one, also implemented this Knots fix, making inscriptions unable to be included in blocks mined by the pool.
Furthermore, Dashjr hinted at the possibility of introducing a similar fix in an upcoming version of Bitcoin Core, the default full-node software of the Bitcoin network. “Bitcoin Core is still vulnerable in the upcoming v26 release. I can only hope it will finally get fixed before v27 next year,” he declared.
Several members of the Bitcoin community rejected this possible change. Jameson Lopp, co-founder and CTO of Casa, stressed that mining had a significant economic element now and that his proposal was unlikely to stand. “Miners are mostly large enterprises now. They have a duty to maximize profit for shareholders. They will mine any valid transaction that pays the highest fee rates,” he concluded.
Udi Wertheimer, a co-founder of Taproot Wizards, one of the largest inscriptions projects, stated that while Dashjr had made “sporadic contributions” to Bitcoin projects, he was not Bitcoin’s owner.
What do you think about Luke Dashjr and his take on inscriptions? Tell us in the comments section below.
Report: Spanish Police Arrest Man Accused of Conspiring With Jailed Ethereum Developer to Evade US Sanctions
Spanish law enforcement said on Dec. 1 it arrested a man accused by the U.S. of conspiring with Ethereum developer Virgil Griffith to help North Korea evade sanctions. A Spanish judge released the man who has since denied the allegations.
Cao de Benos Released Without Conditions
The Spanish police announced on Dec. 1 that it had arrested a man accused by the U.S. Department of Justice (DOJ) of contracting with jailed Ethereum developer Virgil Griffith to help North Korea evade sanctions. Alejandro Cao de Benos, who used a false identity, was caught in Barcelona while preparing to leave for Madrid.
According to a Reuters report, the DOJ has previously accused Cao de Benos of asking Griffith to use his expertise to assist North Korea in busting U.S. sanctions. Griffith is now serving a more than 5-year sentence for his supposed role in the conspiracy.
Following his arrest, Cao de Benos, who founded the Korea Friendship Association, appeared before a Spanish judge who has since released him without conditions. After his release, Cao de Benos immediately pleaded his innocence in a post on X (formerly Twitter). He added that there would be no extradition.
“There is no extradition. The US accusation, besides being false, does not exist in Spain,” Cao de Benos said on X.
However, according to an unnamed Spanish judicial source, the U.S. now has to formalize the process to have Cao de Benos extradited. If convicted, Cao de Benos faces up to 20 years in prison.
What are your thoughts on this story? Let us know what you think in the comments section below.
L2 Crypto Project Blast Achieves $660M TVL Amid Mockery for Key Developer Recruitment
Recent data reveals that Blast, the new layer two (L2) blockchain platform, has amassed a significant 0 million in value within its decentralized finance (defi) protocol. Concurrently, while accumulating a variety of crypto assets, the initiative has commenced a search for experienced senior blockchain developers.
While Amassing 0M, L2 Blast Project Searches for Developers
In recent times, Blast has emerged as a focal point of interest. This project, conceptualized by Pacman, the mind behind the non-fungible token (NFT) marketplace Blur, has rapidly gained traction. Within a span of less than a week, the platform’s total value locked (TVL) soared to approximately 0 million.
Concurrently, Blast faced allegations of resembling a Ponzi scheme. During this period, Paradigm, a principal investor in the project, admitted that the team had overstepped in certain aspects of communication and implementation.
Pacman has also countered the Ponzi scheme allegations and further clarified that Paradigm played no role in shaping Blast’s market entry strategy. In a mere five-day period following these events, Blast witnessed its TVL swell to 0 million, bolstered by an additional infusion of 4 million.
Notably, on November 30, when the TVL reached 4 million, Blast broadcasted its intent to expand its team, announcing open positions for hiring.
“Hiring announcement,” Blast stated. “Blast has reached 4m TVL across 67,757 community members. We’re hiring a senior devops engineer and senior protocol engineer. Reach out if you would like to contribute to Blast.”
The hiring announcement sparked skepticism upon its release, as observers questioned the project’s lack of engineering staff. “No mainnet, no testnet, no code, no employees, 4m TVL,” mocked one commentator, sharing an image of Pepe the frog.
Skepticism continued to mount on social media platform X, where another user exclaimed, “This cannot be real LOL.” Doubts persisted, with a further remark stating, “Yea this ain’t gonna end well.” The situation’s gravity led another individual to inquire, “Do you need a lawyer?”
Another person replied in jest:
Does anyone know how to make an L2? We needz help!
Currently, Blast holds a portfolio of 198,733 ether, 73,518 staked ether (STETH), and considerable amounts of stablecoins: 39.56 million USDC, 30.66 million tether (USDT), and 15.6 million DAI tokens. The role of senior protocol engineer, as outlined in the job specification, is pivotal.
This individual will significantly contribute to the team’s adaptation of the open-source OP Stack, which is rooted in go-ethereum. The OP Stack represents a unified, shared, and open-source development framework that fuels Optimism, under the stewardship of the Optimism Collective. Several L2 forks are based on the OP Stack.
What do you think about the L2 project Blast? Let us know what you think in the comments section below.