The latest news on cryptocurrencies, blockchain and Defi

As markets were finally showing encouraging signs, higher-than-expected inflation data has thrown a real cold shower on most assets. In fact, US equity indices had their worst day of 2022. Bitcoin followed the trend, losing 9% in yesterday’s session alone. This pullback comes at a particularly inopportune time for bitcoin, the cryptocurrency that had just closed above its 50-day moving average and was testing its long-term bearishness.

Source: Adobe

Is the CPI data that bad? High, sure, but not that far from expected. What we witnessed yesterday looks like a real repositioning of many investors, who instead expected data below forecasts, thanks in particular to the sharp drop in gasoline prices in August. It was the cost of services, excluding those related to energy, which increased significantly. The fundamental change itself is not strong, but sentiment in the markets has changed dramatically, at least in the short term.

The most disappointing thing is certainly that bitcoin continues its strong correlation with risky assets rather than acting as a protection in an inflationary context, as its nature allows it very well, at least on paper. As Tyler Winklevoss of Gemini states: “Bitcoin is down after the announcement of higher than expected inflation for the month of August (8.3% instead of 8.1%). Bitcoin is expected to be higher today. Its properties dictate that it should be inversely related to inflation. The fact that he is down shows how early we are [dans son histoire] “.

A few hours now separate us from unitethis long-awaited transition from the consent mode proof of work to proof of participation for the Ethereum chain. We explored the technical challenge and the different steps that led us to this turning point. We will not repeat this exercise today. Let’s take this image from Ethereum’s own foundation: “Imagine that Ethereum is a spaceship that is not yet ready for interstellar travel. With the chain Headlights, the community built a new engine and hardened hull. After numerous tests, it is almost time to hot replace the new engine with the old one at mid-flight ”. The success of the operation will represent a phenomenal leap forward for the sector. On the contrary, its failure would be dramatic.

At the time of this writing, exactly 85% of the client software is up to date and therefore ready to merge. It is not possible to know the exact time of this passage, the level of difficulty of the network constantly changes according to the work of the computer aimed at the chain. According to current best estimates, however, the key time is expected to occur between midnight and 2:00 am Eastern time next night. From this moment, it will be necessary for the transaction blocks to start being offered on the chain proof of participation. Every 12 seconds, with the new Ethereum system, a validator will be chosen randomly to offer the chain a “block”, a list of transactions that it wants to publish in the ledger. “We wait like clockwork for a block every 12 seconds on the proof-of-stake chain,” says Ben Edgingtoon of ConsenSys. At each “slot”, which is an interval of 12 seconds, the protocol chooses a validator to propose a block for that slot. If that validator is offline, on a different fork or does not participate correctly, the block disappears “. In short:” Immediately, we will see slot empty, slot empty, slot empty, and that will be the first sign of trouble. If we see “block, block, block, block, block,” then we know it’s okay, “Edgington says. However, some lost slots, Edgington says, aren’t immediately a reminder of desperate concern.

The real confirmation of the migration’s success, however, will come only when the turnout for the new network is confirmed, when “the network will collectively declare a block, a time checkpoint in which it can never be reversed. We will never rewrite history before this point. “In other words, this is when transactions written to the new proof-of-stake ledger become irreversible.” The time we open the champagne is when we finalize the merger checkpoint, which will be between 13 and 15 minutes after the merger, “concludes Edgington. Interested in experiencing the moment live? Log in beaconcha.in follow the block-by-block migration e wenmerge.comfor a counter that brings us closer to fusion.

The team behind EthereumPoW (ETHW) officially plans to launch its hardfork soon after the merger. This chain aims to continue the current mode proof of workallowing miners to continue accumulating rewards through computer work rather than the staking of Ether. “ETHW’s mainnet will take place within 24 hours of the merger,” @EthereumPow’s Twitter account posted. “The exact time will be announced 1 hour before launch with a countdown and everything including final code, binaries, configuration files, node information, RPC, explorer, etc. will be made public when time runs out.” exchanges have expressed interest in or have already listed ETHW’s fork, including Poloniex, Bitfinex, and Coinbase.

According to analysts from Bank of America Friday, the next night’s update could boost institutional adoption. In a statement, the second largest bank in the United States said that the ability for Ethereum users to stake (i.e. commit assets on the network) could increase the interest of large investors. Furthermore, the reduction of the energy footprint by 99.95% with the new chain will greatly help justify the integration of these actors in the sector. “The significant reduction in energy consumption after the merger could allow some institutional investors to buy the token, while previously they were forbidden to buy tokens operating on blockchain using type consent mechanisms proof of work “Bank of America analysts Alkesh Shah and Andrew Moss wrote in their Friday note. The two analysts added that Ethereum staking and generating “higher quality returns (lower credit and liquidity risks) as a validator” – as opposed to “loan / loan application black box” – could also promote lending. ‘adoption by the institutions. In other words, institutional investors are much more likely to participate in the stakingof Ethereum to generate returns rather than seeking returns by lending and borrowing Ethereum-based assets on risky decentralized finance applications.

A South Korean court has issued an arrest warrant for Do Kwon, co-founder of the stablecoin broadcaster Terraform laboratories, now extinct. The mandate comes four months after the collapse of the $ 40 billion Earth ecosystem and his own stable currency algorithmic (UST). The warrant was allegedly issued in connection with a violation of capital market rules and targeted five other people currently residing in Singapore. The collapse of Terra is the first domino in a series of industry failures that ushered in this new winter for the cryptocurrency market.

BitGo, custodian of digital assets, persists and approves of its threats. The company has just filed a lawsuit against cryptocurrency investment firm Galaxy Digital, following its announced plan to seek more than $ 100 million in damages after Galaxy pulled out of its proposed takeover of the company. Galaxy Digital previously said it would not have to pay a penalty for terminating the deal. This is another saga that promises to spill a lot of ink in the coming months.

See you next week on the other side of the long-awaited merger of the ETH network!

Follow our affiliate links:

  • To buy cryptocurrencies in the SEPA zone, in Europe and French citizensvisit Coinhouse
  • To buy cryptocurrency in Canadavisit Bitbuy
  • To generate interest with your bitcoinsgo to the BlockFi website
  • To protect or store your cryptocurrenciesget Ledger or Trezor wallets
  • To trade your cryptocurrencies anonymouslyinstall the NordVPN app

To invest in cryptocurrency mining or masternodes:

To accumulate coins while playing:

  • In poker on the CoinPoker gaming platform
  • To a global fantasy football on the Sorare platform

Stay informed with our free weekly newsletter and to our social networks:

Leave a Comment