Welcome to the protocol, the weekly conclusion of Coindesk of the most important stories of the technological development of cryptocurrencies. I am Margaux Nijkerk, the journalist of the Ethereum protocol in the Coindesk technological team.
In this issue:
- Token-Dump scandal of the movement inside: secret contracts, ghost advisers and hidden intermediaries
- Ethereum could overeat the transaction speed at 2,000 TPS thanks to a new daring proposal
- Bitcoin debate on loose data limits is reminiscent of the controversy of ordinal divisors
- The basic Coinbase network reaches the status of “stadium 1”, reducing the risk of centralization
Network news
Movement token discharge scandal: The movement, a buzzing crypto startup supported by Trump’s World Liberty Financial, was closed a B series of $ 100 million. Instead, following a Coindesk survey, the network is now at the center of an initiate-discontent scandal which has exposed a shabby corner of cryptographic competition. Movement Labs examines whether it was misleading in the signing of a marketing agreement which granted an obscure intermediate control over 66 million tokens, triggering a sale of $ 38 million after the beginnings of the token. Internal contracts show that Rentech, a company without a digital imprint, appearing on both sides of the agreement, once as a web3port subsidiary and once as an agent of the Foundation of Movements, raising questions about self-training. The officials of the Foundation initially pointed out the Rentech agreement as “perhaps the worst agreement” they have ever seen; Experts warned that he had created incentives to pump the Move price before emptying the tokens on retail investors. The incident revealed a flaw within the framework of the main leaders of the movement: leaders, legal advisers and advisers are all under examination for their roles in the facilitation of arrangement despite internal objections. – Sam Kessler Learn more.
ETH’s proposal aims to increase the gas limit ceiling: The researcher of the Ethereum Foundation, Dankrad Feist, filed EIP-9698, a plan to allow the gas limit of the blockchain to grow on the automatic pilot over the next four years. The EIP introduces a deterministic “exponential” calendar cooked in customer parameters, which is born the gas limit upwards by a small predefined quantity of each era. These foreseeable gas limit increases allow current validators to keep their machines at speed, reducing the need for sudden upgrades. If it is approved and implemented, the gas limit ceiling would drop from 36 million units to around 3.6 billion, allowing around 6,000 simple transfers per block and more than 2,000 transactions per second (TPS). The current TPS of Ethereum is around 15-20 TPS. – Shaurya Malwa Learn more.
Bitcoin blockchain data debates reign that developers weigh data limits: Bitcoin developers are again in contradiction about how the oldest and largest blockchain in the world should manage the storage of information on the chain, with a proposal to relax long -standing limits for the size of the data held by a fierce debate to recall the battles of 2023 on ordinals. The blockchain op_return function allows people to attach a small additional piece of data to a transaction. It is often used for things like notes, horodatages or digital recordings. The proposed change would remove the ceiling of 80 bytes on such data, an originally designed limit to discourage spam and preserve the financial integrity of the blockchain. Supporters argue that the current limit is useless because users are already bypassing it using tapot transactions, to hide the data in the parts of the transaction intended for cryptographic signatures. The Bitcoin Core developer, Luke Dashjr, described the proposal for “total madness” and warned that the release of data restrictions would accelerate what he considers as the deterioration of Bitcoin’s financial objective. – Sam Reynolds Learn more.
The base reaches the state of stadium 1: Base, the popular layer 2 network of Cryptocurrency Exchange Coinbase (Coin), is now a Rollup “Stage 1”, said the company, setting up its path to full decentralization. The transition to a roller “Stade 1” comes while the other layers have also reached this step, which makes these networks less dependent on centralized entities. This decision means that the basis will now have a security council, a network of ten “independent entities, which we have chosen throughout the world,” said Tom Vieira, responsible for the base, in an interview with Coindesk. – Margaux Nijkerk Learn more.
In other news
- Blackrock is preparing to bring the blockchain to the back office of one of its greatest funds, depositing to offer a class of digital shares from its Treasury Trust Money market fund of $ 150 billion via BNY Mellon. The new “DLT sharing”, abbreviation of the technology of the great distributed book, will not hold Crypto. BNY Mellon, the exclusive distributor of the fund, intends to use the blockchain to reflect the file possession files, an additional step which could open the way to a wider adoption of tokenized cash, digital assets or blockchain -based settlement infrastructure in traditional funding. – Sam Reynolds Learn more.
- Free, a tokenization company that works in close collaboration with hedges like Brevan Howard, the investment management company Hamilton Lane and the Nomura’s Digital Assets Unit Laser Digital, plans to tokensiner $ 500 million in telegram debt as a telegram messaging fund based on blockchain (TBF) Messaging. TBF will offer accredited investors an exposure to some of the approximately 2.35 billion dollars in circulation bonds issued by Telegram, providing institutional quality return products which will also be available as a guarantee for chain loan and product development, said free. – Ian Allison Learn more.
Regulation and Policy
- Coinbase (Coin) filed a thesis in the United States Supreme Court case involving an internal data request for data on hundreds of thousands of its customers in 2016, arguing that the court should “protect the confidentiality interests of Americans in digital information stored by third-party service providers”. – Jesse Hamilton Learn more.
- Arizona has innovated in what was a race among the American states to see what could become the first to set up a crypto reserve as an official part of their budgetary strategy, by approving legislation with mainly republican legislators in support. We do not know if Governor Katie Hobbs, a democrat, will examine favorably the legislation rejected by most Democratic legislators. She opposed her veto to a long list of invoices in this session, and if she also opposed her veto, the question is closed for the year. – Jesse Hamilton Learn more.
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