Daily Archives: November 22, 2021

Ethereum vs. Avax Social Media Battles Rage as L1 Fees Keep Rising

Ethereum vs. Avax Social Media Battles Rage as L1 Fees Keep Rising

The Ethereum scaling wars are raging on social media due to the problems that this chain is facing, with fees on layer one (L1) at very high levels. Zhu Su, CEO of Three Arrows Capital, a notable crypto VC company, announced he withdrew his support from the project, criticizing the state in which the chain is now. Emin Gun Sirer, Founder and CEO of Ava Labs, the company behind Avalanche, stated that Avalanche will be able to scale regardless of its growth.

Ethereum Facing Heat in Social Media

The high fees that users have to pay to transact on Ethereum L1 are prompting supporters of the chain to be very vocal in social media about the problems these cause. Zhu Su, CEO of Three Arrows Capital, voiced his discomfort with the state of the Ethereum chain right now, and how its proponents have failed to scale its operation. On Twitter, Su stated:

Yes I have abandoned Ethereum despite supporting it in the past. Yes Ethereum has abandoned its users despite supporting them in the past. Ethereum culture suffers massively from the Founders Dilemma. Everyone is already far too rich to remember what they originally set out to do.

Su criticized that, for newcomers, the chain is unusable due to its high fees. The tweet had more than 15K likes, with 4k of them happening during the first hour of being tweeted. This display of discomfort was also complemented by the opinion of other industry insiders, like Ryan Selkis, CEO of Messari, who stated:

It doesn’t matter if Ethereum is a security anymore because the only people who can afford to use it are accredited anyway.

Avalanche Enters the Fray

Avalanche is often pitted against Ethereum as one of the most prolific substitutes in the cryptocurrency market right now. While the network does offer lower fees for transacting, this is often attributed to the lower usage it experiences compared to Ethereum. On this, Emin Gun Sirer, founder and CEO of Ava Labs stressed:

Keep hearing this: ‘but but but some day Avalanche will be as slow as Ethereum.’ No. Avalanche brought us the biggest breakthroughs in consensus and bridging. We will address lesser engineering problems without batting an eyelid.

The proponents of the original smart contract chain have focused on scaling the chain with L2 solutions based on rollups, like Arbitrum and Optimism, which has led some users to other chains like Avalanche and Solana, as high fees are unlikely to change soon.

What do you think about the scaling wars between Ethereum and Avax? Tell us in the comments section below.

After Overseeing the Largest Monetary Expansion in US History Biden Renominates Powell to Lead the Fed

After Overseeing the Largest Monetary Expansion in US History Biden Renominates Powell to Lead the Fed

U.S. president Joe Biden revealed his intent on Monday to re-nominate Jerome Powell as the Federal Reserve chairperson. Major indices and stocks gained on the news that Powell will get a second term as the head of the central bank.

Biden Chooses to Renominate Fed Chair Jerome Powell

On Monday, president Joe Biden revealed that he has chosen Jerome Powell to lead the U.S. Federal Reserve for another term. Powell will serve as the chairperson during his second term, while Lael Brainard will serve as the Fed’s vice chair. Powell’s renomination follows the uncertainty surrounding who would take his seat.

At the end of August, three Democrat representatives Alexandria Ocasio-Cortez (AOC), Rashida Tlaib, and Ayanna Pressley had urged Biden to choose a chairperson that would address social change and the so-called climate crisis. However, two weeks later sources with ties to Washington told the press that Biden would renominate Powell.

Last week, headlines further detailed that president Biden was nearing his decision and Lael Brainard was noted as a top pick. Following Biden’s choice to renominate Powell for a second term, U.S. Treasury secretary Janet Yellen said that the decision would allow America’s economy to “continue to benefit from his stewardship.”

“America needs steady, independent, and effective leadership at the Federal Reserve so it can advance its dual goals of keeping inflation low and prices stable, as well as creating a strong labor market that broadly benefits workers with better jobs and higher wages,” the White House explained in a statement concerning Powell’s renomination. The White House added:

President Biden has full confidence in Powell and Brainard’s experience, judgment, and integrity to continue delivering on those mandates and to help build our economy back better for working families.

Peter Schiff: ‘With Brainard as Vice-Chair, Inflation Is Assured to Get Worse’

Biden and a majority of U.S. politicians are always on the hunt ways to fund their goals and choosing Powell again will likely keep the flow of money going strong.

The economist and gold bug, Peter Schiff, explained that this is likely the case. “As expected Biden renominated Powell as Fed chair,” Schiff tweeted. The economist continued:

Despite [him doing] lousy jobs, as evidenced by maintaining QE and ZIRP in the face of the highest inflation in 30 years, Powell was the politically safe choice. With Brainard as vice-chair, inflation is assured to get worse.

People also highlighted that Jerome Powell oversaw the U.S. monetary supply expand more so than ever before in America’s history. No doubt we live in interesting times when Jerome Powell, the man who saw a 40% expansion in the money supply in months and tacked $5 trillion onto the Fed’s balance sheet in the time it takes to get a Domino’s Pizza delivered, is the ‘hawkish’ choice,” an individual dubbed “Quoth the Raven” wrote.

What do you think about Joe Biden choosing Jerome Powell for a second term leading the U.S. central bank? Let us know what you think about this subject in the comments section below.

Meme Coin Market Cap Loses 3.5%, Top 2 Leaders Dogecoin, Shiba Inu Shed Billions

Meme Coin Market Cap Loses 3.5%, Top 2 Leaders Dogecoin, Shib Inu Shed Billions

While crypto-asset markets have shed billions during the last week, the top meme tokens coins by market capitalization have seen deeper losses than most coins. The top two meme digital assets dogecoin and shiba inu have seen double-digit losses during the last seven days. The top meme tokens coins by market capitalization today are worth $60.7 billion losing 3.5% in value over the last 24 hours.

Dogecoin and Shiba Inu Lose Double-Digits Last Week

During the course of the year, meme-based crypto assets were all the rage and many of them have gained significant value in 2021.

The top two meme-based cryptocurrencies dogecoin (DOGE) and shiba inu (SHIB) were once top ten contenders in terms of market capitalization. However, today, after suffering some losses both dogecoin and shiba inu have dropped out of the top ten standings.

Dogecoin (DOGE) is the largest meme-based crypto asset in terms of overall valuation. DOGE is also the 11th largest market cap out of 10,975 coins in existence today. The crypto asset has a market valuation of around $28.9 billion as dogecoin has shed 16.7% in value during the last week.

Dogecoin trade volume has slid as well to $995 million DOGE swaps during the last 24 hours. DOGE is swapping for $0.220 per unit at the time of writing and is over 69% lower than its all-time high (ATH).

DOGE captured an ATH of around $0.731 on May 8, 2021, around seven months ago. Despite the losses dogecoin still commands a 12-month return of around 6,200%.

Shiba inu (SHIB) today is the 12th largest market capitalization and the second largest in terms of meme-based coins. SHIB has lost 18.1% during the last week and has a market valuation of around $23.8 billion. SHIB is down more than 3% today and is swapping for $0.00004395 per unit.

The shiba inu price today is over 48% lower than the crypto asset’s ATH on October 28, at $0.00008616. At the time of writing there is $1.7 billion worth of global SHIB trade volume during the last 24 hours.

Despite being down in recent times, 30-day stats show SHIB is still up 57%. Moreover, SHIB’s 12-month return is also far larger than DOGE’s with a 62,589,642% increase.

Not all meme coins have been under this week as a slew of lesser-known meme-based crypto assets have seen double-digit gains.

Jomon shiba (JSHIBA), shih tzu (SHIH), shibance token (WOOF), the doge NFT (DOG), and dogebonk (DOBO) have jumped 11% to 84.4% during the last week. DOBO’s 84% gains made the meme currency the top-performing meme-based asset during the last week.

What do you think about the top meme coins and the meme-based crypto-economy losing value in recent times? Let us know what you think about this subject in the comments section below.

US and UK Agree to ‘Heighten the Focus on Illicit Use of Cryptocurrency’

US and UK Agree to 'Heighten the Focus on Illicit Use of Cryptocurrency'

The U.S. and U.K. governments have “committed and agreed to heighten the focus on illicit use of cryptocurrency and ransomware,” the U.S. Department of Justice announced. According to the FBI, high crypto prices have partially made ransomware “incredibly lucrative for the criminals.”

Governments Collaborate to Focus on Illicit Use of Crypto

The U.S. Department of Justice (DOJ) announced Friday that Deputy Attorney General Lisa Monaco and officials from its National Security Division and Criminal Division met with U.K. Home Secretary Priti Patel in Washington, D.C., on Thursday.

“In their meeting, both governments discussed their close cooperation against numerous threats to their countries’ collective security, including with respect to combating terrorism, cybercrime, and illicit finance,” the DOJ detailed, adding:

Both the deputy attorney general and the home secretary committed and agreed to heighten the focus on illicit use of cryptocurrency and ransomware, as well as to continue the dialogue about emerging threats to national security.

The U.S. government has been trying to combat ransomware attacks. In October, Monaco announced the launch of the National Cryptocurrency Enforcement Team, a DOJ initiative to tackle and prosecute “criminal misuses of cryptocurrency, particularly crimes committed by virtual currency exchanges, mixing and tumbling services, and money laundering.”

In the same month, President Joe Biden said that the U.S. will bring together 30 countries to stop “the illicit use of cryptocurrency.”

FBI Says Ransomware Lucrative Due to ‘Valuation of Virtual Currency’

In a hearing before the House Committee on Oversight and Reform last week, Bryan Vorndran, assistant director of the FBI’s Cyber Division, noted that high crypto prices are fueling criminal networks and ransomware actors.

The hearing was part of a congressional investigation into multimillion-dollar ransomware attacks on major U.S. companies this year, including Colonial Pipeline Co. and the U.S. division of JBS Foods.

“In the last six months, we have not seen a decrease in the amount of frequency of reporting of ransomware attacks,” Vorndran said, adding:

We attribute that to the simple fact that it’s incredibly lucrative for the criminals. That’s partially due to the valuation of virtual currency, but it’s partially due to the vulnerability of our systems and in our infrastructure.

Global Efforts Lead to Arrests and Seizures

The U.S. government has recently taken action against some ransomware actors. In September, the U.S. Department of the Treasury sanctioned a cryptocurrency exchange for the first time as part of the whole-of-government effort to counter ransomware. Suex was allegedly “responsible for laundering ransoms.”

Early this month, another crypto exchange was sanctioned. Chatex allegedly facilitated “financial transactions for ransomware actors.” In addition, two alleged ransomware operators — Ukrainian Yaroslav Vasinskyi and Russian Yevgeniy Polyanin — were sanctioned “for their part in perpetuating Sodinokibi/Revil ransomware incidents against the United States.” The DOJ also seized $6.1 million from Polyanin.

National Cyber Director Inglis said last week that Polyanin’s arrest resulted from a collaboration between countries since the arrest occurred when he crossed the border into Poland. “Cyberspace is a borderless terrain, and therefore, as much as they can reach us we can reach them,” he opined, elaborating:

If we bring allies to bear, we can use jurisdiction in places like Poland and Romania to apprehend these criminals and bring them to justice using the courts of law that exists in the West.

In October, a coordinated strike involving Europol, Interpol, and the FBI led to the arrest of two “prolific” ransomware operators allegedly responsible for ransom demands of up to 70 million euros. Cryptocurrencies worth $1.3 million were seized.

What do you think about the U.S. working with other countries to combat the illicit use of cryptocurrency? Let us know in the comments section below.

Crypto Economy Hovers Below $3T: Analyst Says First Bear Marker ‘Would Be a Capitalization Drop Under $2.38T’

Crypto Economy Hovers Below $3T: Analyst Says First Bear Marker 'Would Be a Capitalization Drop Under $2.38T'

The crypto asset economy has been down in value over the last week as a great number of digital currencies shed significant amounts. The entire crypto-economy is down under the $3 trillion mark, hovering around $2.7 trillion across 10,970 cryptocurrencies. Bitcoin dominance is just above the 40% region while ethereum’s market commands 18.4% of the crypto economy on Monday.

Analyst Notes a Few Possible Factors May Have Contributed to the Market’s Slide

Digital currency markets have seen better days and on Monday, November 22, 2021, bitcoin (BTC) is down 9.7% during the last seven days. At press time, a single bitcoin is exchanging hands for just above the $58K per unit zone and the asset has a market valuation of around $1.11 trillion. Ethereum (ETH) has lost 7.4% this past week and is currently swapping for under $4,300 per ether. The biggest loser out of the top ten market caps this week was polkadot (DOT) with a 12.3% loss. Solana (SOL) lost the least amount of value dropping 6.7% and avalanche (AVAX) entered the top ten standings gaining 41.0% this week.

In a note sent to Bitcoin.com News, Etoro’s market analyst Simon Peters explained that there were a few factors that may have contributed to the market’s downward drop. “Bitcoin and a host of other crypto assets fell precipitously last week, with a few possible factors in play,” Simon Peters said. “Firstly, the Taproot upgrade to the bitcoin blockchain created uncertainty in the investor community. Perhaps the most important upgrade in the past four years for the network, Taproot was meant to streamline the crypto asset’s transactions, making them faster and cheaper. Upgrades of this nature can cause short-term uncertainty as investors hold fire to see what will happen to the network,” Peters added.

The Etoro analyst continued:

Also affecting price levels recently is the U.S. infrastructure bill. The bill, led by President Joe Biden, could see companies subjected to stricter rules around the reporting and handling of crypto assets, and this has fed into further investor uncertainty. Finally, with bitcoin and other crypto-assets having reached fresh all-time highs, there was always likely to be a measure of profit-taking from investors which then translates into price weakness. Both bitcoin and ethereum go from strength to strength, and the ups and downs of the market are a part of this story.

Alex Kuptsikevich: ‘Bear Market Would Be a Capitalization Drop Under $2.38 Trillion’

Alex Kuptsikevich, the Fxpro senior market analyst, detailed in a morning crypto market analysis that bitcoin (BTC) markets are bearish. “The technical picture for bitcoin is on the bearish side,” Kuptsikevich explained to Bitcoin.com News.

“After Friday’s technical rebound, the first cryptocurrency hit resistance at the weekend in the form of the 50-day moving average and the 76.4% retracement level from the September-November rally. Stronger selling from this level suggests a short-term trend reversal and a set-up for a deeper and longer correction,” Kuptsikevich added.

Kuptsikevich further stated:

The first marker of a bear market would be a capitalisation drop under $2.38trn, which is 8% below current levels. For Bitcoin, such a level is near $55k, representing a 20% drop from the peak, a return to the highs of September, and 61.8% of the last rising momentum. An overcoming of these levels would signal a further drawdown of 20-30%.

Huobi Group Analyst: Bitcoin’s Future Price ‘Highly Uncertain’

Du Jun, the co-founder of Huobi Group explained that BTC has “strong support at $57,500” but the “price of BTC is highly uncertain.”

“According to data from Huobi Global, BTC fell quickly to the $57,500 position during daytime and was hindered,” the Huobi Group analyst noted on Monday. “Looking at the 4h K-line, the three EMA lines are descending at different ranges, and the slope of EMA5 is the largest, implying that the downtrend of price is gradually obvious. Changes of price [went] smaller today and trading volume has returned to normal levels.”

What do you think about the crypto market outlook this week? Do you think the market looks bearish or do you think markets are still bullish? Let us know what you think about this subject in the comments section below.

Kenya Central Bank Governor on CBDC: It’s About Getting It Right Rather Than Being First

The Central Bank of Kenya (CBK) governor, Patrick Njoroge, has said his institution is currently exploring the use of central bank digital currencies (CBDC) to settle cross-border payments. Njoroge however insists the bank’s priority is getting it right rather than being the first.

CBK’s Approach

According to a report by the Kenyan Wallstreet, Njoroge — who made these remarks while attending a virtual Afro-Asia Fintech festival — argued that such a CBDC would enhance the efficiency of cross-border payments. The report nonetheless quotes Njoroge reiterating the CBK’s approach which is different from that of other central banks. He said:

We see the benefits would be more cross border. The issue is not to be first, the issue is to do it right.

These remarks by the CBK governor come a few weeks after the Central Bank of Nigeria (CBN) became the first country in Africa to launch a CBDC. Some three weeks after launch, the CBN reported that nearly 500,000 wallets had been downloaded and e-naira transactions worth $150,000 had been recorded.

Collaboration Versus Going It Alone

As Bitcoin.com News reported, however, the e-naira continued to encounter challenges before and after launch, and this culminated with the brief removal of the wallet app on the Google Play Store. In addition, some observers in Nigeria continue to decry the CBN’s decision to extol the CBDC — which is pegged at par with the physical naira — while cracking down on cryptocurrency users.

Although the Kenyan Wallstreet report does not quote Njoroge mentioning the CBN’s launch of the e-naira, the same report suggested that the CBK governor favors cooperating with other central banks rather than going it alone.

Do you agree with Njoroge’s approach of getting it right rather than being the first? Tell us what you think in the comments section below.

Anomus Private Round Closes With Uber-Subscribed Sales

IDO Will Follow On November 26th

Anomus has been a well-anticipated project that has gained much attention over the last few months. Today Anomus is announcing the closure of its private sale round with a very successful and promising oversubscription.

The oversubscription was well anticipated by the team; which is due to the project’s hype which, backed by well-known names in the blockchain space and a team of crypto professionals, has been building up a lot lately.

Anomus plans to launch its ‘Initial Dex Offering’ (IDO) on the 26th of November 2021; the team, investors, and partners are excited in anticipation of the alpha launch of the platform, which is expected to roll out during December 2021.

Anomus Is The Future of News & Journalism

Anomus is a decentralized protocol that aims to restore fairness, objectivity, and balance to news reporting. Its goal is to create a platform for publishers to save their work in blockchains, where it will be permanently recorded and accessible worldwide while protecting the publisher’s intellectual property rights. Publishers, auditors (Fact-Checkers), and readers will all be rewarded in various ways as a result of their participation in the system.

Publishers now have a way to create and monetize their content without censorship or restrictions, all while having it governed by the community and preserved for future generations.

Aside from publishers, Anomus aims to create an ecosystem that utilizes ANOM tokens to all users’ benefit, providing everyone with incentives to publish, audit, and read content by issuing rewards for participation and the proper use of the platform.

The project will feature:

  • A censorship-free environment that encourages free speech
  • Autonomous, community-governed platform
  • Reward system for publishers, fact-checkers, and readers
  • Content preservation through blockchain and permaweb technology

Join Anomus today by signing up to become part of this decentralized revolution.

ANOM tokens will be governed by the Anomus Tokenomics.

Find out more about Anomus by visiting the Website and reading the Whitepaper.

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Third-Generation Blockchains Will Pick Up the Defi Slack Left by Ethereum

With the ETH 2.0 upgrade still months, if not years, from a full launch, third-generation blockchain protocols are quickly racing up to dethrone Ethereum as the “go-to” hub for dapps and defi.

Blockchain Metamorphosis to Catalyze Future Defi Growth

Although many people may only be discovering it recently, blockchain technology has been around long enough to have moved on from first to second, and now third-generation protocols.

The first-gen blockchain started with Bitcoin, a proposed alternative to the hegemony of centralized financial services. It laid the foundation for a decentralized financial ecosystem, but the Bitcoin network offered limited functionalities, required immense computational power to operate, and suffered from a severe lack of interoperability.

This led to the emergence of Ethereum in 2015, marking the dawn of the second generation of blockchain protocols. As Vitalik Buterin introduced the smart contract functionality on the blockchain, it sparked a paradigm shift that enabled cryptocurrencies to transition from financial tools to serve a more practical purpose.

Ethereum’s Problems Continue to Pile Up

Ethereum opened the doorway to decentralized finance (defi) by enabling “conditional transfer” of data and value on-chain. Since then, Ethereum has been on a rolling spree, cementing itself as the go-to platform for launching dapps, NFTs, and defi protocols.

Developers and adopters embraced Ethereum and began generating their own ERC20 tokens, so much that the social media platforms started talking about “the flippening” — where ETH would overtake BTC in terms of market capitalization.

However, despite its success, problems soon became evident on the Ethereum blockchain. As new projects entered the Ethereum ecosystem en masse, the network started facing scalability issues. Gas fees shot through the roof, and limited transaction throughput became an everyday problem.

Vitalik Buterin, the creator of Ethereum, has also expressed his doubts regarding Ethereum’s ability to scale, saying,

Scalability [currently] sucks; the blockchain design fundamentally relies on bottlenecks where individual nodes must process every single transaction in the entire network.

While the proposed Ethereum 2.0 upgrade promises solutions to the current problems clouding the Ethereum network, things haven’t progressed as planned. Initially slated for a 2019 rollout, the first phase of ETH 2.0 started in December 2020. And with two more phases to go, there are minimal chances of a full-fledged release before 2022.

As such, it isn’t hyperbole to claim that the network has a long road ahead before it can achieve its core vision of becoming the world’s “decentralized computer.”

Here Come Third-Generation Protocols

Despite the innovations brought forward by Bitcoin and Ethereum, the chains are plagued by their respective scalability and efficiency issues. At the same time, both networks require significant computing resources to operate. All of this has led to a perpetual cycle of painfully slow throughput rates and excessively high costs.

Many layer-2 scaling solutions have been developed to overcome the inherent problems with Bitcoin and Ethereum, each achieving varying degrees of success. Layer-2 solutions have addressed the interoperability and scalability issues to an extent, but the core problems related to consensus mechanisms and mining are yet to be addressed.

This is where third-generation blockchains come into the picture. While some third-generation protocols can complement existing blockchain networks, others are totally new blockchains that boast a wide range of features and functionalities. From multi-layered architectures to innovative consensus mechanisms, third-generation blockchain protocols are not just fully capable of resolving scalability issues as they arise, but are also highly interoperable, fast, and cost-efficient.

There is no denying that the defi boom happened because of Ethereum and that Ethereum still dominates the defi market. However, as new defi projects built on third-gen blockchain protocols enter the picture, Ethereum’s authority will undoubtedly be challenged.

As defi continues to expand its market, the next “Defi Boom” will most likely come from emerging chains that are more agile and focused than earlier blockchain network innovations. That said, promising projects are lining up for newer blockchains as the cryptoverse sets the table for the “next big flippening.”

The Battle for Defi: Featuring Cardano, Solana, and Polkadot

When it comes to market dominance, Cardano, Solana, and Polkadot are leading the pack. Each platform offers a range of features, which is why a consortium of new projects are lining up to start building their ideas on these chains.

For instance, Ardana, Cardano’s stablecoin and defi hub, enables Cardano to expand into the defi landscape. The platform and its constituent protocols are designed from a defi macro-perspective to offer users the required functionalities to help maintain all types of decentralized economies on the Cardano chain. It will function as a financial base layer, supporting Cardano’s decentralized economy by employing historically proven protocol models for composability, capital efficiency, and stability.

As part of its strategic roadmap, Ardana will soon launch dUSD. This verifiable, on-chain collateral-backed stablecoin will help users put their ADA and other supported assets to work. The platform will also launch its AMM dex (decentralized exchange), Danaswap, for stable multi-asset pools. Per the Ardana team, Danaswap will offer capital-efficient swaps while aiming for minimal slippage and enabling liquidity providers to leverage low-risk yield opportunities.

Another ambitious initiative picking up the baton where Ethereum left off is Acala, the defi liquidity hub leveraging the built-in features of third-generation blockchain protocol Polkadot. Currently, almost every stablecoin is built on the Ethereum network, limiting adoption and use. Acala wants to shift this reality by leveraging Polkadot’s speed, cross-chain interoperability, and cost-efficiency to offer a defi hub with built-in liquidity and readymade decentralized financial applications.

Likewise, Acala claims to settle transactions for a fraction of what other networks require, building a quantitative edge in the defi race. The platform will support micro gas fees that are only slightly affected by transaction complexity through Polkadot’s weight-based fee model. In addition, Acala will also introduce an “algorithmic risk adjustment” feature that will automatically modify risk parameters on its lending and borrowing protocol, including interest rates and collateral ratios.

Finally, in this ongoing war for defi market share, Atani, the all-in-one crypto trading platform built on Solana’s blockchain network, is another heavyweight contender to monitor. The platform features free crypto trading tools and has partnered with top exchanges like Kucoin, Binance, Okex, Bitfinex, Poloniex, and more to offer users lower trading fees.

Atani recently launched its new dex aggregator on Solana, to deliver order routing features while offering add-ons like portfolio tracking, price alerts, technical analysis, and more. With this aggregator and Solana’s embedded qualities, Atani’s plan is to reduce friction between the fragmented defi ecosystem, serving up the liquidity from cexs (centralized exchanges) and dexs to the Solana ecosystem while assuring multi-chain support.

The Road Ahead

We haven’t really scratched the surface when it comes to tapping into the real potential of defi. Web 3.0 is growing, and the global village is becoming a lot smaller. At the same time, defi services are so revolutionary for both the global unbanked and the underbanked that they need more space to expand, just as existing protocols push network capacity limits.

From an unbiased perspective, Polkadot, Cardano, Solana, and several other third-generation blockchain platforms offer the much-needed solutions to scalability and interoperability that have handicapped the legacy chains. They are faster, more secure, cost-efficient, and have low resource consumption, positioning them as all-in-one solutions that broadly benefit the entire cryptocurrency industry. With Ethereum 2.0’s debut still a long way off, third-generation blockchain protocols are already here to do the heavy lifting and take defi to the next level.

Which network do you think will win the defi race? Let us know in the comments section below.

Central Bank of Peru Will Develop a Digital Currency


The Central Reserve Bank of Peru, the Peruvian central bank, is planning to develop a central bank digital currency (CBDC) like other economies of the world. The announcement was made by its president, Julio Velarde, who stated that the currency would be designed for use primarily in payments. However, Velarde also acknowledged this was not the best time to present the currency due to the current uncertainty in markets.

Peru to Hop on CBDC Bandwagon

Julio Velarde, president of the Reserve Bank of Peru, announced the institution was already working on the creation of a national central bank digital currency (CBDC). The announcement was made last week during the 59th virtual edition of the annual executive summit. He stated that the creation of such a currency is a must in a digitally based future. Velarde stressed:

We have been working on a digital currency. We are in a lot of projects with several central banks: with India, Singapore, Hong Kong and with a lot of central banks, thinking of a digital currency that is going to be the one that will prevail in the future.

While this digital currency is yet in its early stages of development, according to Velarde this puts it in the same class as others being developed by economies of similar size. However, Mexico and Brazil are usually pointed to for CBDC advancements in the area.

Payment Focused

Peru’s cryptocurrency design seems to be focused on aiding the payments sector which, according to Velarde, will be radically different in an eight-year period. With this work, the country seeks to keep advancing in the field as other economies are doing. However, Velarde acknowledged that Peru still lacks the necessary resources to complete this project now, or to face the risk that the completion of such a project brings to Peru’s economy. The head of the central bank maintains this is not the ideal time to pursue this goal.

The announcement surprised many economic actors in the country, given that Peru is not known for being a nation especially friendly towards cryptocurrencies. The country is still in its initial stages of embracing crypto, given that there is no legal framework to support cryptocurrency (or CBDC) activity in its economy.

Adopting a CBDC is something that countries like China are already doing, while countries like El Salvador decided to go through a radically different process, adopting Bitcoin as legal tender.

What do you think about Peru starting the development of its own CBDC? Tell us in the comments section below.

Electric Coin Company Reveals Zcash Network to Transition to Proof-of-Stake in 3 Years

Electric Coin Company Reveals Zcash Network Plans to Transition to Proof-of-Stake in 3 Years

On Friday, Electric Coin Company (ECC), the developers behind the privacy-centric crypto-asset zcash, revealed the network plans to transition to proof-of-stake (PoS) consensus. ECC also revealed the team plans to launch an official ECC wallet, as well as bolster the network’s cross-chain interoperability.

Zcash to Change From PoW to PoS

The Zcash network currently leverages a proof-of-work mining algorithm called Equihash, which allows miners to compete in order to find new blocks on the Zcash chain. In a blog post published on November 19, ECC announced the network will transition toward a proof-of-stake (PoS) consensus algorithm over the next three years. Zooko Wilcox-O’Hearn discussed the network moving from PoW to PoS in a blog post published on August 3, 2021.

Furthermore, ECC’s CTO Nate Wilcox also published a blog post about the PoS subject a week after Zooko’s post. In the roadmap post published on Friday, ECC explains that transitioning to PoS will “increase the utility for ZEC through capabilities that include yield generation through staking.” Alongside this, PoS can also lead the ZEC chain toward onchain “governance mechanisms,” the ECC roadmap details.

ECC Looks Toward a ‘Reduction of Zcash’s Energy Footprint’ Zcash-Based ASIC Miners Still Rule the Roost

ECC’s blog post further states that a PoS-based ZEC chain can contribute to the “reduction of the ZEC energy footprint.” During the course of the year, PoW consensus algorithms have received a lot of criticism concerning PoW’s effect on the environment. ECC’s roadmap post adds:

We believe the shift to proof of stake is achievable within three years if we are able to focus our time and efforts and hire additional talent.

The value per zcash (ZEC) has jumped a great deal since the news and is up 23.6% during the last 24 hours. During the initial launch, the Zcash network’s blocks were processed by miners with graphics processing units (GPUs) but during the last few years, application-specific integrated circuit (ASIC) miners have taken over.

At the time of writing, a Bitmain Antminer Z15 that processes the Equihash algorithm at 420 ksol/s gets $33.44 per day in ZEC rewards. Innosilicon’s A9++ Zmaster does around 140ksol/s and gets $8.13 per day in profit using today’s ZEC exchange rate.

What do you think about Zcash transitioning over to PoS? Let us know what you think about this subject in the comments section below.