Interpol’s Operation First Light, a global initiative involving 61 countries, has disrupted online scam networks by freezing 6,745 bank accounts and seizing assets worth 7 million, including million in cryptocurrency. The operation targeted phishing, investment fraud, fake online shopping sites, romance, and impersonation scams, leading to the arrest of 3,950 suspects and identifying 14,643 […]
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Resolving the Liquidity Dilemma: Orderly Network’s Next-Gen Trading Infrastructure Elevates DeFi Efficiency with Institutional-Grade Liquidity
By enhancing liquidity, simplifying the user experience, and supporting diverse trading solutions, an omnichain trading infrastructure like Orderly Network is transforming the DeFi landscape and paving the way for widespread adoption. While the total value of decentralized finance (DeFi) approaches 0 billion as of June 2024, analysts predict the market will grow six times by […]
Bitcoin News
Battle Of Networks? Algorand Pokes Fun At Bitcoin, Ethereum, And Solana In New Ad
Algorand Foundation’s new ad criticized Bitcoin, Ethereum, and Solana for their efficiency. The ad received mixed reactions from the crypto community and sparked a conversation about the art of advertising crypto products.
Algorand, The Only One “Delivering”
Algorand’s latest ad has sparked controversy for “dissing” three networks. Titled “When Blockchain Meets The Real World, Only One Can Deliver,” the ad features a classic grocery store checkout line format.
The video shows three customers trying to pay for groceries with crypto: Bitcoin, Ethereum, and Solana. During the ad, the three shoppers have problems with their respective transactions, seemingly suggesting that the rival networks are unsuitable for everyday use.
The customer using Bitcoin had to wait 27 minutes for the transaction to be completed; the one paying with Ethereum was told the transaction fees were 2, and the Solana payer had his transactions repeatedly failing. All three issues in the ad are common criticisms that the three targeted networks receive.
The commercial then shows the next checkout line, with buyers using Algorand as a payment method. As this line moves quickly, the video displays text stating “Instant Finality. Low Fees. Designed for the speed of life.”
The ad finished with the cashier saying, “Should have shopped with Algorand,” and Anthony Scaramucci, investment guru and founder of SkyBridge, asking how to get in the fast-moving line.
The Crypto Ads Conundrum
The video received mixed reviews from the crypto community. Many applauded the ad, stating that Algorand is the future of Layer-1 and payments. One X user said:
I can’t stress enough how much the Algorand Foundation does compared to others. All the meetings, tweets, events, etc…this isn’t happening on other chains!
However, the negative responses didn’t take long to follow. Several community members considered the jab at other chains an unnecessary and “embarrassing” attack. A user jokingly claimed that Algorand achieved an “impossible goal” with the ad: “uniting all the factions of crypto to dunk on you.”
Crypto commentator Zach Rynes considers that this type of marketing doesn’t make sense as he is unsure who it appeals to. In an X post, Rynes explained that the ad would leave the wrong impression on non-crypto people.
To him, the video will make the public think that “crypto sucks,” not knowing that the ad is for crypto. The commentator believes it’s a “lose-lose either way” since “Crypto-native people will see this as unnecessarily combative.”
Similarly, Mert, CEO of Helius Labs, brought up a point repeated by several community members. Mert criticized Algorand for spending money on an ad when its “top two explorers [are] going out of business due to no funding.”
Moreover, he seems to consider the jab at other networks ironic when Algorand’s got its “entire economic security flipped by two dog coins on Solana (WIF + BONK).”
Cardano Joins The Advertisement Conversation
Despite the criticism, the discussion also sparked interest in the ADA community. X account ADA Whale praised the commercial for being funny.
Another community member tagged Cardano founder Charles Hoskinson in the video, suggesting he should start looking for a marketing team to promote Cardano. The user cited the US government’s U-turn, possibly bringing regulatory clarity, as a decisive factor.
This is not the first time Cardano has received criticism over its marketing approach. In March, the conversation sparked when the “Cardano Girls” video became viral.
Content creator Lily Brodi suggested that despite having the technology aspect figured out, Cardano has an “unattractiveness problem.” This problem prevents a broader audience from entering its community and adopting the technology.
Ultimately, crypto ads remain a hot topic and a useful tool for the industry. Whether users find them “cringy” or “unnecessary” sometimes, they have the potential to help with broader adoption through educational and entertaining crypto-related content.
Developing Countries Need Decentralized Physical Infrastructure Networks – Karam Lakshman
Karam Lakshman, CEO of Wifi Dabba, asserts that a country like India, which is the world’s fifth-largest economy, needs enhanced connectivity and innovation. He suggests that Decentralized Physical Infrastructure Networks could be the solution for the country, which currently trails other major economies in fixed broadband connectivity. Using Blockchain to Establish Transparent Networks Lakshman supports […]
Bitcoin News
Arbitrum Outpaces Ethereum in Daily Transactions Amidst L2 Networks’ Surge
Recent statistics reveal that the layer two (L2) network Arbitrum has experienced a significant increase in daily transactions. On Tuesday, the network’s daily transactions even exceeded those on the Ethereum platform. Additionally, following Ethereum’s Dencun upgrade, other L2 networks such as Optimism have also witnessed an uptick in activity. Arbitrum Transfers Spike Metrics indicate that […]
Bitcoin News
Meme Token Frenzy Drives up Ethereum Fees, Testing Network’s Scalability
Amid a significant uptick in ERC20 tokens, especially meme coins, the expense of conducting transactions on Ethereum has notably increased, pushing the average fee to .19 for each operation. Further data indicates that executing a swap on a decentralized exchange (dex) platform could incur a cost of . Transfers and Dex Swaps Costlier as Ethereum […]
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Report: Bitcoin and L2 Networks Lead Fee Generation Surge in Blockchain Landscape
The PWN DAO Foundation, linked to the peer-to-peer lending protocol PWN, has released a comprehensive report analyzing user-incurred onchain fees within major blockchain networks and decentralized applications (dapps) for the past year. The 2023 analysis examines Ethereum, BNB Chain, Bitcoin, and layer two (L2) solutions, along with widely-used dapps such as Aave and Uniswap. The report sheds light on the primary trends in fee generation and discusses the changing patterns of blockchain utilization and revenue.
2023’s L1 and L2 Fee Generation Stats Revealed
The report published by PWN, illustrates a diverse landscape of onchain fee generation, underscoring a 33% overall reduction in fees across the selected projects compared to the previous year. This trend was particularly pronounced in non-fungible token (NFT) marketplaces, which experienced an 87% drop in fee generation. In contrast, L2 solutions exhibited significant growth of around 411%, indicating a shift in user preferences and platform utilization.
The study shows layer one (L1) blockchains, despite a slight decrease, continued to dominate the fee market, accounting for 59% of all fees, up from 48% in 2022. Ethereum, maintaining its position as a market leader, showed a notable 44% decline in fees, partly due to the migration of activities to L2 networks.
“The rising fees generated by [L2s] signal widespread adoption and a significant impact on user experience,” the study’s researchers detail.
The report also highlights significant changes in individual blockchain platforms. Bitcoin, Tron, and Polkadot saw the most substantial growth in fee generation, with Bitcoin’s fees surging by 461%. The increase in Bitcoin network fees was attributed to the popularity of Ordinal inscriptions, a novel embedding application within the Bitcoin network, marking a notable shift in its usage dynamics. As of Jan. 29, 2024, the count of Ordinal inscriptions on the Bitcoin blockchain has impressively surpassed the 58 million mark.
Decentralized exchanges (dexs) witnessed a 51% decrease in fee generation, with Uniswap emerging as a dominant player, securing 64% of dex-generated fees. The report suggests that despite the decline in fees, the trading volume on dex platforms remained relatively stable, pointing to an evolving relationship between trading activity and fee structures in the decentralized finance (defi) sector.
The report concludes by discussing liquid staking derivatives (LSDs) which showed a significant 93% increase in fee generation, highlighting the growing interest in staking solutions within the crypto-native economy. The report notes that Lido Finance, the LSD leader, collected a significant portion of these fees, reflecting the platform’s strong position in the market.
As the landscape evolves, with user preferences gravitating towards more efficient and innovative platforms, it’s clear that the blockchain ecosystem is continuously undergoing a transformative phase. This evolution paves the way for emerging technologies and strategies, potentially redefining the future of blockchain utility and economic models in the crypto space.
What do you think about PWN’s report surrounding L1s and L2s, dapps and fee generation? Let us know what you think about this subject in the comments section below.
Bitcoin Network’s Mining Difficulty Drops 3.9% to 70.34 Trillion, Easing Miner Workload Amid Texas Cold Snap
On Saturday, the Bitcoin network experienced its first difficulty reduction of the year, witnessing a 3.9% decrease at block height 826,560. As a result, the network’s mining difficulty now stands at 70.34 trillion, with the next adjustment anticipated on Feb. 4, 2024.
Bitcoin Difficulty Slips to 70.34 Trillion, Lightening Load for Miners
Mining bitcoin (BTC), the leading crypto asset in terms of market capitalization, has become slightly more feasible for miners following this recent difficulty modification. This change took place on Jan. 20, 2024, at block height 826,560, rendering the process of discovering a block reward 3.9% less challenging than during the preceding two weeks. Previously, the difficulty level was pegged at 73.19 trillion, but it has now declined to the present figure of 70.34 trillion.
The current difficulty of 70.34 trillion defines the maximum threshold for the hash of a block to be deemed valid. In essence, when the difficulty is set at 70.34 trillion, it implies that the hash of a valid block must not exceed a target number, which is exceedingly small compared to the full spectrum of potential hash values. The existing difficulty level will maintain its stance for a span of 2,016 blocks, typically a period of two weeks. The subsequent epoch is forecasted to unfold on or around Feb. 4, 2024.
On Jan. 20, approximately 51 different mining entities or pools are dedicating hashrate to the Bitcoin blockchain. Foundry USA wields the most might with 29.43% of the total hashrate over the past three days with 139.89 exahash per second (EH/s) of hashpower. Antpool commands 22.49% of the aggregate commanding around 106.90 EH/s of SHA256 hashpower. Foundry’s and Antpool’s lead is followed by F2pool, Viabtc, and Binance Pool respectively.
Currently, the total hashrate hovers just below the 500 EH/s mark, registering 497 EH/s on Jan. 20, 2024, at 11:00 a.m. Eastern Time. This figure is slightly below the seven-day simple moving average (SMA) of 547 EH/s, which was noted five days earlier on Jan. 15, 2024. This indicates that the network has experienced a reduction of approximately 50 EH/s in under a week. The decrease in hashpower is primarily due to scaled-back operations in Texas, where mining businesses have reduced their activity to allow the grid to manage the extreme subzero temperatures impacting the state.
What do you think about the network’s mining difficulty reducing 3.9%? Share your thoughts and opinions about this subject in the comments section below.
Ethereum Layer 2 Networks Just Set A New Record
The total value locked (TVL) on Ethereum layer-2 networks recently hit a new all-time high in January, a testament to the continued adoption of Ethereum. Layer 2 networks sit on top of the Ethereum blockchain and help scale it by processing transactions off-chain before sending data back to the main blockchain.
According to data from L2BEAT, a layer-2 analytics platform, the TVL on these scaling solutions recently reached an all-time high of .16 billion, representing a 340% growth from the same day last year.
Ethereum Layer-2 Networks Hit New Milestone
2023 was a great year for Ethereum, as the altcoin and its scaling solutions registered a steady increase in TVL despite strong competition from other networks like Solana and Cardano. Data from L2Beat shows the TVL on these scaling solutions started in 2023 with .81 billion but grew steadily throughout to end the year at .98 billion dollars, a 315% growth.
This growth was particularly exacerbated in the last quarter of 2023 and continued into 2024. The TVL grew by .18 billion in the first three days of January to reach .16 on January 3, its current all-time high.
At the time of writing, the TVL is now at .41 billion, still up by 3.82% in the past seven days. A large fraction of this layer-2 TVL can be attributed to Arbitrum One, with the scaling solution currently having .05 billion worth of cryptocurrencies locked.
OP Mainnet, formerly called Optimism, is second with a current TVL of .84 billion. 57% of this TVL is composed of OP tokens, compared to Arbitrum One, whose ARB token constitutes only 36% of the TVL.
State Of The ETH Network
This massive growth shows that Ethereum users are flocking to layer 2 networks to escape high gas fees and congestion on the mainnet. Ethereum’s TVL also witnessed steady growth throughout the year, adding .6 billion in the last quarter of 2023. Data from DeFiLlama shows the TVL on Ethereum is now at .532 billion.
However, Ethereum has seen its daily active addresses and transaction count plunge in the last few months. Data from Artemis revealed the network is currently being surpassed by Solana and Sui in terms of daily transaction count. Recent competition from Solana prompted an analyst to describe Ethereum as digging its own grave by relying too much on its layer-2 networks for scalability.
Some layer-2 chains are also currently processing more transactions than Ethereum itself. L2BEAT puts the monthly transactions on zkSync Era and Arbitrum at 39.91 million and 35.54 million respectively, ahead of Ethereum’s count of 33.91 million transactions.
Zero Knowledge Rollups as a Service Hasten the ‘Implementation of Secure and Scalable Networks’ — Alvaro Fernandez
Alvaro Fernandez, the Chief Operations Officer (COO) at Lumoz, has stated that while zero-knowledge rollups have demonstrated exceptional security and scalability, the technology is still not user-friendly. To address this issue, networks should opt for ZK Rollups-as-a-Service (ZK-RaaS) because this simplifies the creation process for a single ZK-Rollup. This makes them “more accessible for developers and projects to use,” Fernandez added.
Zero-Knowledge Versus Optimistic Rollups
In his written answers sent to Bitcoin.com News via Telegram, Fernandez argued that by offering what he called “a seamless experience” ZK-RaaS can also quicken the “implementation of secure and scalable networks.” While ZK-RaaS are believed to be more secure, Optimistic Rollups-as-a-Service, on the other hand, are favored for their simplicity and cost-effectiveness.
Regarding industry sectors most suited for ZK-RaaS, the Lumoz COO identified decentralized finance (defi), gaming platforms, and non-fungible token (NFT) marketplaces. In decentralized finance, ZK-RaaS mitigates challenges relating to traditional platforms’ “high fees and sluggish transaction speeds.” By using ZK-RaaS, gaming platforms and NFT marketplaces can reduce transaction costs and increase transaction speed, while ensuring the security and privacy of their users’ data.
Below are Alvaro Fernandez‘s answers to all the questions sent to him.
Bitcoin.com News (BCN): Zero-knowledge (ZK) rollups have proven to be especially effective in creating secure and scalable networks yet the technology is seemingly not user-friendly. Can you tell our readers what these zero-knowledge rollups or ZK-RaaS are all about and why they are considered to be critical for scalability?
Alvaro Fernandez (AF): Absolutely, while ZK-Rollups have demonstrated exceptional security and scalability, their user-friendliness has been a challenge. ZK-RaaS addresses this concern by providing a user-friendly platform that abstracts the complexities of ZK Rollup technology.
ZK-RaaS simplifies the creation process of a single ZK-Rollup, making it more accessible for developers and projects to use. As what Lumoz provide, It’s a total no-code process, even ordinary people can use the ZK-RaaS launch base to generate their own ZK Rollup in minutes with bridges and explorers. One of the biggest challenges for most of the ZK projects is the prover cost, usually it’s the main cost of running a ZKRollup and its project needs to spend much effort and time maintaining the machines. Lumoz proposed this decentralized prover network that takes care of all the computing power stuff, which is free to projects.
This approach is critical for scalability because it lowers the entry barrier, encouraging a broader adoption of ZK Rollup technology. By offering a seamless experience, ZK-RaaS accelerates the implementation of secure and scalable networks.
BCN: There are two types of Rollups-as-a-Service — Optimistic Rollups and ZK-Rollups that are widely adopted by blockchain projects. What’s the difference between them and what are the pros and cons of each?
AF: Optimistic Rollups and ZK-Rollups are key Rollups-as-a-Service in blockchain. Optimistic Rollups assume transaction validity unless disputed, offering flexibility and cost-effectiveness. However, the arbitration process may introduce delays. ZK-Rollups use Zero-Knowledge Proofs for private transaction verification, excelling in privacy and security with faster finality. Yet, they may have higher setup costs due to computational needs. The choice hinges on project priorities: Optimistic Rollups for simplicity and cost-effectiveness, ZK-Rollups for heightened privacy and security.
BCN: Your company Lumoz uses a hybrid Proof-of-Work/Proof-of-Stake network to facilitate ZK-proof mining and enable developers to generate a customized zero-knowledge EVM chain. Could you tell us how this hybrid model works and why it’s needed in the first place?
AF: While proof of stake is primarily associated with the DA aspect, various DA providers like Celestia, Avail, Radius, and Espresso populate the market. Projects are encouraged to freely choose any for seamless integration including Lumoz DA.
However, proof of work stands out as a core strength and a distinctive advantage of Lumoz. As mentioned earlier, the generation of zkps in all zk-rollups necessitates computing power. Thanks to our decentralized prover network, miners can contribute their computing power, participate in zkp generation, and earn rewards through the POW process. Leveraging Lumoz’s extensive experience in mining, we’ve crafted this prover network to reduce barriers for projects seeking to adopt zk technology, while also facilitating miners to make valuable contributions and receive rewards.
BCN: With more and more people entering the Web3 space, why do you think decentralized applications (dapps) deployed on legacy Layer-1 chains and Layer-2 solutions need to consider using ZK-RaaS?
AF: Ethereum L1 is too congested, which is why Vitalik proposed the need for L2 to reduce transaction fees and increase TPS, improving the overall user experience. The differences between ZK and OP have been mentioned earlier, with ZK being more secure. Lumoz’s zk-raas addresses the issues of ZK computation power and deployment, enabling everyone to easily create customized zk-rollups.
The advantages of having one’s zk-rollup are evident — all on-chain resources serve the project, avoiding contention. This results in high TPS, low transaction fees, and an excellent user experience.
BCN: How does cross-rollup interoperability work with ZK-RaaS? Can you talk about Lumoz’s Native Cross Rollup Communication (NCRC) protocol that claims to provide a trustless solution for rollup interoperability?
AF: Cross-rollup interoperability is crucial in the ZK-RaaS framework, and Lumoz’s NCRC protocol ensures a seamless and trustless solution. This allows direct communication between ZK-Rollup chains, fostering a decentralized and secure environment without intermediaries. NCRC 2.0 enhances this by enabling cross-contract calls between second-layer networks, facilitating atomic cross-rollup contract calls.
Lumoz prioritizes user experience by integrating the first-layer network seamlessly, ensuring asset concentration without compromising decentralization. The NCRC protocol, especially in its latest version, exemplifies Lumoz’s commitment to achieving trustless cross-rollup interoperability, addressing challenges, and enhancing the blockchain ecosystem’s connectivity.
BCN: What industry segments are the most likely to benefit from ZK-RaaS? And how useful could it be for the Web2 companies that want to build their custom appchains?
AF: ZK-RaaS showcases its broad applicability across diverse industry segments, extending its benefits beyond the blockchain realm. In the financial and decentralized finance sectors, ZK-RaaS has the potential to transform transactions by ensuring security and scalability, mitigating challenges related to high fees and sluggish transaction speeds on traditional platforms.
Gaming platforms and NFT marketplaces can leverage ZK-RaaS for scalable and cost-effective transactions involving in-game assets and unique digital assets represented as NFTs. Additionally, in identity management, ZK-RaaS can play a crucial role in authenticating users without exposing sensitive information, making it valuable for industries requiring robust identity solutions.
As Web2 companies venture into building custom Appchains, ZK-RaaS emerges as a multifaceted solution, offering scalability, privacy preservation, customization, cost-effectiveness, and interoperability. This comprehensive set of features positions ZK-RaaS as a versatile choice for enhancing capabilities and meeting diverse needs in the evolving digital landscape.
What are your thoughts on this interview? Let us know what you think in the comments section below.