Category Archives: ERC-20

Auto Added by WPeMatico

EOS21 Protocol Teleports Ethereum Tokens to EOS Blockchain

A new protocol called EOS21 has been developed, with the purpose of teleporting Ethereum ERC-20 tokens to the EOS blockchain. This will give decentralized application (Dapp) developers flexibility to use their native tokens on both the Ethereum and EOS blockchains, instead of launching a different token on each blockchain.

Transferring tokens between the Ethereum and EOS blockchains was possible even before the development of EOS21. Indeed, the EOS token itself was transported from Ethereum. However, this process is not automated and continuous; developers take a snapshot of the tokens on the Ethereum blockchain and open up an airdrop on the EOS blockchain. This is a one-shot deal where the ERC-20 Ethereum token version of the crypto gets burned and becomes non-functional. With EOS21, the token can exist on both EOS and Ethereum, and be moved back and forth as needed.

The EOS 21 protocol has three dimensions. In the first, a blackhole smart contract on the Ethereum blockchain absorbs ERC-20 tokens, while collecting EOS account information from the user. Developers can choose to burn their ERC-20 tokens in the blackhole or hold them in the smart contract. Therefore, developers can decide whether they are moving permanently from Ethereum to EOS or leave the door open to move the tokens from EOS back to Ethereum in the future.

In the second dimension, an off-chain oracle program watches the Ethereum transactions and authorizes the distribution of the EOS tokens. This oracle could potentially run entirely on EOS in the future instead of being off-chain. The third dimension is a smart contract on EOS that distributes the EOS tokens to the user.

Before EOS21, there was no direct link between the Ethereum and EOS blockchains. The linking of the Ethereum and EOS economies can be mutually beneficial. Now developers can launch Dapps on both the EOS and Ethereum blockchains and use the same token, expanding Dapp functionality, increasing user base, and providing upward pressure on a token’s price.

Further, distributing Dapps across Ethereum and EOS, rather than running on just one of those blockchains, can be considered a scalability solution. If the network gets congested on one of the blockchains, then users would use the other blockchain more to save on transaction fees, which would result in a lessening of network congestion on the 1st blockchain.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post EOS21 Protocol Teleports Ethereum Tokens to EOS Blockchain appeared first on BitcoinNews.com.

Ethereum ERC-20 Creator Proposes Reversible ICOs

The creator of the Ethereum ERC-20 token standard, Fabian Vogelsteller, is proposing new technology which will make initial coin offerings (ICOs) reversible, meaning investors can withdraw their funds from the ICO at any time. This will give investors full protection, which would eliminate fraud. This new form of crowdfunding might be called RICO, which stands for reversible ICO.

The ERC-20 token standard is an easy, efficient, and secure way of launching a cryptocurrency via an ICO. A smart contract can be created with ERC-20, where investors send Ether to the smart contract and receive their tokens. This technology has led to USD 20 billion of investments into ICOs in the past two years and has been a boon for the entire crypto space. Unfortunately, a significant fraction of ICOs end up not delivering on their promises of new blockchain technology or in the worst case scenario, end up being outright scams.

Vogelsteller said he feels “obligated to come up with something better” since, without ERC-20, scam ICOs would probably be much harder to pull off and occur less frequently.

The proposed RICO would allow investors to send back their tokens at any time to the smart contract address and get back the Ether they invested. This would give RICOs strong motivation to deliver on their promises, instead of misspending the invested money, since if the RICO fails then all the money will be taken back.

Vogelsteller said, “You are able to withdraw the funds you committed at any point of time and you do this by simply sending back your tokens… It brings the balance back between the community and the project and I think this is really important.”

If RICOs are implemented, then catastrophic ICO failures due to mismanagement or fraud will become a thing of the past. RICO projects will fail naturally and investors will be safe, rather than ICOs hurting all the investors if they don’t deliver. This is good for companies conducting RICOs too since lawsuits would be less likely if a failure happens as investments would be automatically returned.

One aspect of RICOs that remains unclear is how there will be a balance between the company getting the funds it needs and the investors being safe. For investors to be 100% safe, companies that conduct RICOs would never be able to touch any of the invested Ether, which is probably not the way they would prefer to work.

Vogelsteller will demonstrate an RICO in real-life when he launches his fashion and design blockchain Lusko. At that point, the concept behind RICOs should become more clear.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Ethereum ERC-20 Creator Proposes Reversible ICOs appeared first on BitcoinNews.com.

Coinbase Lists USDC Stablecoin

Coinbase, the largest crypto exchange headquartered in the United States, announced today that they have listed USD Coin (USDC), a stablecoin originally launched by Circle, but now Coinbase is listed as a Co-Founder. This is the first time a stablecoin has been listed on Coinbase, and only the 7th cryptocurrency to ever be listed on the platform, others being Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, and 0x.

Notably, USDC is an Ethereum ERC-20 token, making it the 2nd ERC-20 token to be added to Coinbase, with the first one being 0x, which was listed less than 2 weeks ago on 12 October 2018. When 0x was listed on Coinbase it was speculated that it would be easy for Coinbase to list other ERC-20 tokens since they use the same backbone technology, and this has already come to fruition with the listing of USDC. There are numerous other ERC-20 tokens among the top cryptos, and in the coming weeks and months, it is likely that Coinbase will keep listing ERC-20 tokens and other cryptos, as per their announcement about listing all possible major cryptocurrencies.

Generally when a crypto is listed on Coinbase they experience the Coinbase Effect, which is a rally resulting from Coinbase users buying the crypto as soon as it is listed. This is because Coinbase is perhaps the most well-known crypto exchange in the United States, and due to the lack of cryptos listed, there is a strong thirst for any new cryptos that get listed.

Since USDC is a stablecoin and pegged approximately to the value of a single USD, its price will not rally due to being added to Coinbase. The way to measure a stablecoin rally or crash is with its market cap since the market cap indicates how much of the stablecoin has been purchased. USDC launched in late September, so the market cap was technically zero up to that point. The market cap grew to USD 10-15 million, until the middle of October 2018 when Tether (USDT), the #1 stablecoin with a market cap in excess of USD 2 billion, had problems and become unpegged from the USD. By 19 October the USDC market cap was in excess of USD 30 million. Following the listing on Coinbase today, the USDC market cap has already more than doubled to USD 62 million.

Since USDT continues to be volatile and is worth less than USD 1, this will give USDC the opportunity to rapidly increase its market cap and perhaps compete with USDT, especially now that Coinbase has listed USDC.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Coinbase Lists USDC Stablecoin appeared first on BitcoinNews.com.

BitGo Becomes Most Diverse Crypto Custodian After Adding 57 ERC-20 Tokens

BitGo has added 57 ERC-20 tokens to its cryptocurrency custodian service, making it by far the most diverse cryptocurrency custodian in the world. It plans on adding even more ERC-20 tokens. This rapid expansion of BitGo’s custodian service comes only two months after it launched the service in May 2018, following the acquisition of licensed qualified custodian Kingdom Trust regulated by the South Dakota Division of Banking.

Previously, BitGo only offered services for Bitcoin, Litecoin, Bitcoin Cash, Ripple, Ethereum, Royal Mint Gold, and Bitcoin Gold, and such a small selection of cryptocurrencies is typical for cryptocurrency custodians. Likewise, Coinbase’s custodian service, which caused a reversal in the Bitcoin bear market when it launched in July 2018, only offers support for five cryptocurrencies. Cryptocurrency custodians want to be sure that they only offer services for highly secure cryptocurrencies. Cryptocurrencies with low market caps and less mining power securing them are prone to 51% attacks, which causes theft and market crashes that scare away investors.

ERC-20 tokens are based on the Ethereum blockchain and, therefore, are extremely secure since Ethereum has a tremendous amount of mining power securing its network. This makes ERC-20 tokens an ideal addition for cryptocurrency custodians. Indeed, Coinbase announced in March 2018 that it was planning on adding support for all ERC-20 tokens, but it seems BitGo beat them to the punch.

The 57 ERC-20 tokens that BitGo has added include 0x (ZRX), Augur (REP), Golem (GNT), OmiseGo (OMG), Storj (STORJ) and Zilliqa (ZIL).

Even though these tokens all use the Ethereum blockchain, they are distinct cryptocurrencies, and many of them are top ranking cryptocurrencies. In general, it is expected that Bitcoin will be the first choice for institutional investment since it is considered the gold standard of crypto and has the most liquidity, leading to the least slippage.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay

The post BitGo Becomes Most Diverse Crypto Custodian After Adding 57 ERC-20 Tokens appeared first on BitcoinNews.com.