VeChain Proof-of-Authority: ‘Finality with One Bit’ upgrade live on testnet Samuel Wan · 44 mins ago · 2 min read
The Finality with One Bit upgrade introduces greater security and higher performance into the PoA consensus process.
2 min read
Updated: June 21, 2022 at 7:10 pm
Cover art/illustration via CryptoSlate
Supply chain tracking platform VeChain has upgraded its consensus mechanism by incorporating “Finality with One Bit” (FOB). The team stated that the upgrade, under VIP-220, will “deliver the perfect consensus mechanism for PoA 2.0.”
As the name suggests, this technology relates to transaction finality, which refers to the point at which relevant parties consider a transaction to be finalized, and, is therefore irreversible and unalterable.
In theory, more efficient finality reduces latency, meaning network users can have a greater degree of certainty in a quicker time frame.
According to @WatcherGuru, the FOB upgrade is currently running on a private testnet. This tweet was later re-tweeted by the VeChain Foundation.
ICYMI: #VeChain announced its upgrade to Proof-of-Authority 2.0 is live on a private testnet.
— Watcher.Guru (@WatcherGuru) June 21, 2022
VeChain intends to update Proof-of-Authority
VeChain rolled out Phase 1 (of 3) of its Proof-of-Authority (PoA) 2.0 consensus mechanism in November 2021, calling it the “World’s Greenest Consensus.” This phase introduces a verifiable randomness function that randomly assigns nodes to produce blocks or process transactions, incentivizing nodes to act in good faith.
Phase 2 refers to incorporating a committee-endorsed block-production process which reduces the chances of a network fork. Therefore, minimizing delays and quickening network throughput.
The current phase, finality, is the third and final component of the consensus upgrade. As mentioned, this will bring greater efficiency to transaction finality through:
-Maintaining the usability and robustness of our system by decoupling finality from the PoA process which allows the blockchain to grow in adverse environments
-Introducing minimal complexity to the current PoA-based system, minimizing the potential risks caused by unknown design deficiency and implementation bug
-Adding minimal extra information (one bit per block) for network communication so that we do not need to sacrifice system performance for achieving block finality
Chief Scientist at the project, Peter Zhou called “the finality gadget” a milestone and a significant step forward for the chain in terms of combining advanced security with a “high standard of performance.”
It’s a huge milestone for #PoA2. With the finality gadget, #VeChainThor blockchain is going to provide the state-of-the-art security while maintaining its high standard of performance.
Hope #VeFam enjoy my article~ https://t.co/Adsm1Xzpv1
— Peter Zhou Ⓥ (@PeterZh47977516) June 20, 2022
Following the announcement of FOB, VeChain has experienced a consistent uptick on the daily chart.
At writing, VET is trading at $0.0246, up 19% from Saturday’s local bottom. And up 6% in the last 24 hours. However, in line with many altcoins, VET is trading down 91% from its all-time, achieved in April 2021.
Since mid-May, the token has traded flat, ranging between $0.0277 and $0.0343. A spill on June 10 set off a distinct downtrend before bottoming on Saturday at $0.0202.
Why dYdX is leaving Ethereum and StarkWare for a native chain on Cosmos
Why dYdX is leaving Ethereum and StarkWare for a native chain on Cosmos Liam ‘Akiba’ Wright · 9 hours ago · 3 min read
dYdX is moving to a native chain on the Cosmos ecosystem. But why is the DEX ditching Ethereum, the world’s most popular Turing complete blockchain?
Cover art/illustration via CryptoSlate
The order book decentralized exchange, dYdX, is leaving the Ethereum blockchain to set up a native chain on the Cosmos ecosystem. The move is a surprise as the project defines itself as offering “advanced cryptofinancial products, powered by the Ethereum blockchain.”
The exchange is a unique platform offering lending, borrowing, perpetual futures, and margin and spot trading. Users connect their wallets similarly to a standard decentralized exchange and then deposit funds into the custody of dYdX via smart contract. The funds are, however, still only accessible via the users’ wallets, unlike centralized exchanges. The hybrid offering makes dYdX unique within the Ethereum ecosystem.
dYdX described the move as “rebuilding dYdX as a standalone Cosmos based blockchain featuring a fully decentralized, off-chain, orderbook and matching engine.” The rebuild will be the fourth version of the DEX using the Tendermint consensus mechanism.
Through the utilization of the Cosmos SDK, the migration will allow the new version to offer, among other features, “full decentralization.” Further, Cosmos offers an almost unrivaled cross-chain interoperability through the IBC protocol. The current dYdX token is an Ethereum-based ERC-20 token using StarWare’s StarkEX to facilitate layer-2 functionality. However, the move to Cosmos will allow the dYdX platform to offer a truly taken token on its own blockchain and governance system.
An independent blockchain using the Cosmos SDK dYdX will have its layer-1 token, validators, and staking mechanisms. Therefore, it will not be accountable for updates to Ethereum or have any exposure to issues that may arise ahead of the proof-of-stake merge scheduled for September 2022. On Cosmos,
“each validator will run an in-memory orderbook that is never committed to consensus… the orderbook that each validator stores is eventually consistent with one another. On a real time basis, orders will be matched together by the network. The resulting trades are then committed on-chain each block. “
dYdX states that it “embraces radical changes in technology” and that Cosmos is an ecosystem that will allow it to continue to improve under its vision.
The core reason for dYdX leaving is the high throughput requirements of running a decentralized system with a live orderbook. This trading mechanism is “critical to the trading experience pro traders and institutions demand” and demands it to process over 1,000 transactions per second. By staying on Ethereum, dYdX sees problems with scaling this offering as;
“the fundamental problem with every L1 or L2 we could develop on is that none can handle even close to the throughput needed to run a first class orderbook and matching engine”
After the move, traders will no longer have to pay gas fees for transactions but instead, pay fees based on completed trades which will then be paid to stakers and validators.
On Ethereum, dYdX has to use the StarkWare Layer 2 to offer some of its products, such as perpetual contract markets. Previously the platform had been looking to move towards a layer-2 to reduce gas fees and allow the exchange to scale.
“Ethereum can process around 15 transactions per second (TPS), which is not enough to support the hypergrowth of DeFi… Layer 2 scaling solutions — in the forms of Rollups – free up Ethereum’s base layer by offloading execution, leading to reduced gas costs and increased throughput without increasing network load.”
For the dYdX itself to transition, it will require the ERC-20 token holders to agree to the change as “DYDX, the protocol token of the dYdX protocol, is governed by its holders… dYdX Trading Inc. do not have control over how it is used.” The new protocol will be fully open-source and is currently looking to bring on new developers to help with the move.
Web3 browsers are a gateway to the decentralized world
Web3 browsers are a gateway to the decentralized world Andjela Radmilac · 13 hours ago · 3 min read
Jorgen Arnesen, the VP of Web 3 at Opera, talked to CryptoSlate about Web3 browsers, how they compare to their Web2 equivalent, and where Opera stands in this fast-growing market segment.
3 min read
Updated: June 20, 2022 at 7:00 pm
Cover art/illustration via CryptoSlate
Almost unheard of until last year, the term “Web3” has quickly become the world’s favorite buzzword. Signifying the emergence of a new internet era, Web3 is now being used both by legacy tech companies and decentralized protocols alike.
But what is Web3, and why has it become so significant? To answer that question, CryptoSlate talked to Jorgen Arnesen, the VP of Web3 at Opera, a company that wants to become the industry’s go-to portal to the new internet.
Web3 is the latest evolution of the internet
In the early 1990s, the internet started off in a shape we now identify as Web 1.0. In the first stage of its evolution, there were just a few content creators, with the majority of internet users consuming the content. The beginning of the dot-com boom in the late 1990s marked the beginning of Web 2.0, where interactive social applications hosted user-generated content.
However, the speed and ease of use Web 2.0 provided to users came at a cost. In order for the internet to be as well-connected and easy to navigate as it is today, it needs to be hosted on centralized services, which bring a whole new set of problems to the table.
One of the biggest problems Web 2.0 caused is a loss of control over one’s privacy.
Web 3.0, or Web3 as it’s more commonly referred to, is a natural progression of the internet evolution, presenting itself as a solution for the problems caused by centralization. The primary objective of Web3 is to leverage blockchain technology and cryptography to provide users with decentralized and more secure alternatives to the Web 2.0 services they know and use.
However, interacting with the decentralized Web3 ecosystem is often a complex endeavor that could deter potential users. This is where Web3 browsers step in, acting as a gateway to the decentralized world by building on the legacy of their Web 2.0 equivalents. Arnesen states:
“Web 2.0 browsers are great at what they do, providing a gateway through which we can interact with individual websites and services.
But Web2 browsers can only do what the internet at large allows them to do. Because web2 is a collection of centralized, standalone websites, web2 browsers are limited to providing singular access to these in the manner in which they are designed.
Web3 browsers allow for more functionality by granting a window into a plethora of interconnected services that aren’t siloed by exclusive or centralized technologies,” said Jorgen Arnesen, the VP of Web3 at Opera.
Interacting with the decentralized world
In an interview with CryptoSlate, Arnesen said that the emergence of Web3 browsers has allowed users to interact with a wide range of decentralized applications and blockchains from the comfort of a single interface. This has significantly improved the user experience when interacting with Web3 platforms and services, despite the fact that they’re still in their infancy. Arnesen said:
“Right now, the decentralized web spans tens of thousands of applications, protocols, cryptocurrencies, blockchains, games, and websites. While the ultimate goal of Web3 is to bring the best of these under a cohesive, connected ecosystem, the current state of the decentralized web still requires that we interact with them in a largely individual manner.”
Arnesen believes that Web3 browsers will have a much more important role to play in the decentralized web than their Web 2.0 counterparts did. He explained:
“Web 2.0 browsers are great at what they do, providing a gateway through which we can interact with individual websites and services. But they can only do what the internet at large allows them to do. Because Web 2.0 is a collection of centralized, standalone websites, Web 2.0 browsers are limited to providing singular access to these in the manner in which they are designed.”
Web3 browsers, on the other hand, allow for more functionality. He said that Web3 browsers grant users a window into a plethora of interconnected services that aren’t siloed by exclusive or centralized technologies. As Web3 browsers can go beyond this infrastructure and offer greater interoperability from a single interface, they enable access to each and every corner of the decentralized web — becoming true gatekeepers of the internet’s iteration.
Browsers like Opera have positioned themselves at the frontlines of the battle for privacy. With the crypto financial system underlining the decentralized web, the need for privacy has never been greater.
And while decentralized technologies like blockchain are private as a standard, accessing them still requires going through established Web 2.0 channels like Google. Intermediaries like Google track and log user data, which is why Web3 browsers have taken steps to provide users with privacy-preserving infrastructure at their very base layers.
“Browsers like Opera block the tracking and data collection techniques that many websites and applications implement as standard.”
Arnesen said that Opera has made deliberate and concentrated efforts to advance the adoption of the decentralized web by providing the tools to interact with it.
This can be seen primarily in the Opera Crypto Browser, which allows users to access a range of blockchains and cryptocurrencies, as well as all of the applications and services associated with them. Arnesen explained that additional tools like an integrated crypto wallet and a free premium VPN have allowed Opera to lay the foundations for truly autonomous and permissionless access to the decentralized web.
The inherent flaw of delegated proof-of-stake governance systems with Nischal Shetty, WazirX
The inherent flaw of delegated proof-of-stake governance systems with Nischal Shetty, WazirX Liam ‘Akiba’ Wright · 47 seconds ago · 5 min read
We spoke to WazirX founder Nischal Shetty about the issues with delegated proof-of-stake and how to achieve true decentralization
5 min read
Updated: June 18, 2022 at 5:05 am
Cover art/illustration via CryptoSlate
CryptoSlate recently caught up with Nischal Shetty, Founder of India’s biggest crypto exchange WazirX to discuss layer 1s, the human role in blockchain, validator responsibilities, proof-of-stake governance, and decentralization.
With the recent chaos with the governance of Terra Luna and the imminent Ethereum merge, we asked Nischal for his insight into the on-chain voting and how blockchain can do better.
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