#ETH #Ethereum #ethereumshanghaiupgrade #eth2.0

Ethereum's total supply has decreased by 66,000 ETH in the first few months of 2023, according to recent reports. This trend suggests that the network and its cryptocurrency are now functioning under a deflationary model. IntoTheBlock, a market analysis platform, shared this information on Twitter, indicating that this decrease in supply corresponds with the burning of fees associated with each mined block on the network after the introduction of the EIP-1559.

The burning of assets has increased significantly since The Merge's arrival in September 2022, which exchanged Proof-of-Work mining for Proof-of-Stake, significantly reducing transaction costs and enabling new validators without the need for specialized hardware. The increase in burned assets is due to the high volume of transactions that the network can now process more easily. This dynamic balance is causing the network to destroy more ETH than it produces, giving the cryptocurrency deflationary properties that could limit the supply further while meeting growing demand and ensuring the price remains stable or even increases.

The upcoming Shanghai update, which will take place on April 12th, introduces a new property that will allow network validators to withdraw ETH as collateral to process blocks and access rewards. This incentive is an exciting development for individuals interested in joining the network as validators.

In summary, Ethereum's deflationary properties could have a significant impact on its price in the future. The decrease in supply, coupled with the increase in burning assets, is a clear indication that the network is moving towards a more efficient model. The upcoming Shanghai update will add to this efficiency, making the network more attractive to new validators and potentially fueling further growth in the network

The future of Ethereum looks promising, as it continues to be one of the leading blockchain platforms for decentralized applications (dApps) and smart contracts. Ethereum's ability to execute complex smart contracts and enable developers to create a wide range of decentralized applications has made it a popular choice for both developers and users.

In addition to these upgrades, Ethereum is also seeing increased adoption by institutions and corporations, which are exploring the use of Ethereum for various applications, including supply chain management, digital identity, and decentralized finance (DeFi).

The growth of DeFi on Ethereum has been particularly significant, with a range of decentralized exchanges, lending platforms, and other financial applications being built on the network. This has led to an increase in the use of Ethereum's native cryptocurrency, Ether (ETH), as well as the development of new tokens and protocols.

Overall, the future of Ethereum looks bright, as it continues to innovate and address the challenges of scalability, energy consumption, and interoperability with other blockchains. However, as with any emerging technology, there are also risks and uncertainties, and it is important for investors and users to carefully assess the potential benefits and risks before engaging with the platform.

#ETH #Ethereum #ethereumshanghaiupgrade #eth2.0

Ethereum has been one of the most popular and innovative blockchain networks since its inception in 2015. The Ethereum network has been known for its smart contract capabilities, allowing developers to build decentralized applications (dApps) and run them on the network. However, the current version of Ethereum (Ethereum 1.0) has some limitations that are hindering its growth and scalability. To address these issues, Ethereum is undergoing a major upgrade known as Ethereum 2.0. In this article, we will dive into what Ethereum 2.0 is and why it is important for the future of the Ethereum network.

What is Ethereum 2.0?

Ethereum 2.0 (also known as Eth2 or Serenity) is a major upgrade to the Ethereum network that will improve the network's scalability, security, and sustainability. The upgrade is being rolled out in multiple phases, with each phase introducing new features and improvements to the network. The main focus of Ethereum 2.0 is to replace the current proof-of-work (PoW) consensus mechanism with a proof-of-stake (PoS) mechanism, which is more energy-efficient and secure.

Why is Ethereum 2.0 important?

The current version of Ethereum (Ethereum 1.0) has some limitations that are hindering its growth and scalability. These limitations include slow transaction times, high fees, and limited scalability. As the popularity of the Ethereum network continues to grow, these limitations become more pronounced, making it difficult for developers to build and scale dApps on the network. Ethereum 2.0 addresses these issues by introducing several new features and improvements, including:

Proof-of-Stake (PoS) Consensus Mechanism

Ethereum 2.0 introduces a PoS consensus mechanism, which is more energy-efficient and secure than the current PoW mechanism. In a PoS system, validators (similar to miners in PoW) are selected to validate transactions based on the number of tokens they hold and lock up as a stake. This eliminates the need for energy-intensive mining and reduces the risk of centralization.

Sharding

Sharding is a technique that allows the network to split into smaller partitions (shards) that can process transactions in parallel. This increases the network's throughput and reduces congestion and fees. Ethereum 2.0 will introduce 64 shards, each capable of processing up to 500 transactions per second.

eWASM

Ethereum 2.0 will introduce a new virtual machine called the Ethereum WebAssembly (eWASM), which is faster and more efficient than the current Ethereum Virtual Machine (EVM). eWASM allows developers to write smart contracts in different programming languages, making it easier for developers to build dApps on the network.

Improved Security

Ethereum 2.0 will introduce several security improvements, including penalties for malicious behavior, slashing conditions, and better validator monitoring. These improvements will make the network more secure and resistant to attacks.

When will Ethereum 2.0 be fully rolled out?

Ethereum 2.0 is being rolled out in multiple phases, with each phase introducing new features and improvements to the network. The first phase of Ethereum 2.0 (also known as the Beacon Chain) was launched in December 2020, which introduced the PoS consensus mechanism. The next phase, known as the Merge, will integrate the current Ethereum 1.0 network with the new Ethereum 2.0 network, allowing users to transfer their assets from the current network to the new network. The final phase of Ethereum 2.0, known as the Shard Chains, will introduce sharding and eWASM.

It is important to note that the rollout of Ethereum 2.0

is a complex and gradual process that will take several years to complete. The development team behind Ethereum 2.0 is taking a cautious and deliberate approach to ensure that the network is stable and secure before each phase is rolled out. This means that users should not expect all the features and improvements of Ethereum 2.0 to be available immediately.

How will Ethereum 2.0 affect current Ethereum users?

For current Ethereum users, the transition to Ethereum 2.0 will be a gradual process. Users will be able to continue using the current Ethereum network (Ethereum 1.0) until the Merge phase is rolled out. At that point, users will be able to transfer their assets from the current network to the new network. It is important to note that this process may take some time and may involve some technical complexity.

One of the main benefits of Ethereum 2.0 for current Ethereum users is the improved scalability and lower fees. This will make it easier and more affordable for users to transact on the network and use dApps. However, it is important to note that some dApps may need to be updated to work on the new Ethereum 2.0 network.

Conclusion

Ethereum 2.0 is a major upgrade to the Ethereum network that will address some of the limitations of the current Ethereum 1.0 network. The upgrade introduces several new features and improvements, including a more energy-efficient and secure PoS consensus mechanism, sharding for increased scalability, and a new virtual machine for improved efficiency. The rollout of Ethereum 2.0 is a complex and gradual process that will take several years to complete, and current Ethereum users should expect a gradual transition to the new network. Overall, Ethereum 2.0 has the potential to significantly improve the scalability, security, and sustainability of the Ethereum network, making it a more robust and capable platform for building decentralized applications.

#eth2.0 #Ethereum #ETH #crypto2023 #dyor

#ETH #Ethereum #ethereumshanghaiupgrade #eth2.0

Ethereum 2.0 has been one of the most talked-about upgrades in the cryptocurrency space for some time now. And while it has been in development for a while, we are now closer than ever to the activation of one of its most important features: staking withdrawals.

According to recent reports, the activation of the Shanghai upgrade is set to take place on April 12, 2023. This is a crucial development for Ethereum staking, as it will enable validators to withdraw their deposits from the Beacon Chain.

The decision to activate the upgrade was made by the core developers of the Ethereum network during their recent All Core Developers Execution Layer call. The activation will take place in the epoch 6209536, as confirmed by Tim Beiko, the moderator of the meetings, and other developers like Marius van der Wijden.

Currently, over 550,000 validators are responsible for approving transactions and adding them to new blocks in the Ethereum chain. The ETH deposited in the smart contract exceeds 17.6 million, making it a significant sum of money for those who have invested in Ethereum staking.

However, there are still some questions that remain unanswered. One of the most significant concerns is whether the withdrawals will be full or partial. In the first case, validators will be able to withdraw ETH without limits, while in the second case, they may only be able to withdraw the excess amount over the 32 ETH required to become a validator. This means that they will be able to withdraw their earnings from the moment they made their deposit until the date of withdrawal.

It is important to note that the procedure and methodology for ETH withdrawals have not been announced yet. However, it is expected that this information will be made public soon, as the Ethereum community eagerly awaits the activation of the Shanghai upgrade.

#ETH #Ethereum #ethereumshanghaiupgrade #eth2.0 #selfcustody

Cryptocurrencies are known for their self-custody feature, which puts the responsibility of managing funds solely on the users. While this provides users with complete control over their assets, it also means that any mistake can lead to the loss of funds. Unfortunately, this has happened on a large scale in the case of Ethereum (ETH).

According to a recent report, more than USD $1.1 billion worth of ETH has been lost forever due to human error. The report estimates that at least 636,000 ETH, which is about 0.5% of the current circulating supply, is now completely inaccessible. However, this figure is only an estimation of the losses caused by human error.

The majority of the funds were lost due to an error in the Parity crypto wallet, which affected about 178 addresses and resulted in the loss of about 514,000 ETH in 2017. In addition, over 12,619 ETH was lost due to typing errors made by users, affecting about 2,638 wallets that made mistaken transactions.

There are also funds housed in wallets that have become inaccessible and assets sent to burn addresses. About 85,476 ETH was lost in the former group, while the latter saw about 24,187 ETH lost.

It's important to note that the actual amount of ETH lost is likely much higher than the reported figures. Conor Grogan, the Director of Product Strategy and Commercial Operations at Coinbase, who shared the report, believes that the estimated losses are just a small portion of the actual losses incurred due to human error.

The report only covers instances where Ethereum is permanently blocked, meaning that the actual losses may be much higher. Additionally, the ETH documented in the report did not have the high dollar value it does now at the time of loss.

This loss of ETH is not an isolated incident. A previous report estimated that around 1.6 million bitcoins, worth around USD $44.8 billion today, have been lost forever. The lesson here is clear: users must be extra careful when handling their cryptocurrency funds, as any mistake can lead to significant losses.

In conclusion, the loss of over 636,000 ETH due to human error is a stark reminder of the responsibility that comes with managing cryptocurrency funds. As the popularity of cryptocurrencies continues to grow, it's essential to be vigilant and take necessary precautions to ensure that you do not fall victim to similar losses.

Ripple CTO David Schwartz says he wants to have as many people as possible to have no barrier to using XRP.

According to Schwartz, he prefers to live in a world where XRP works with other platforms and protocols.

“Many times, I get asked whether something should be made to only work with XRP. Unless it’s an XRPL feature (where XRP really is special because it’s the only native asset), I almost always say, ‘No, it should work with anything it can be made to work with’.

If something only works with XRP, it’s only interesting today to people who fit XRP today. That isn’t everyone. I’d rather some technology that works with XRP work for as many people today as possible. Why?

Because there are lots of technologies that don’t work with XRP. And people who use those technologies will have a much harder time migrating to XRP even if it fits their needs at some time. I want to have the largest pool of possible that have no barrier to using XRP.”

The blockchain veteran uses Google as an example to illustrate his point.

“This draws more people to the technology and cause everyone to get better user experiences from that technology. If you can use it even when XRP makes no sense, you can easily use it when XRP does make sense.

If Google had tried to make the Internet only work well for people who use Google stuff, the Internet would for a lot of people. And then there would be a lot fewer Internet users, Internet devices, and Internet connections to access Google stuff even when it’s a fit.”

#Binance #xrp #cpi #fomc #eth2.0

Bitcoin Halving

Bitcoin Halving: What It Is and What it means for the Crypto Market

Bitcoin halving is an event that takes place approximately every four years and has a significant impact on the crypto market. As the name suggests, it is a process of reducing the amount of Bitcoin that is created and released into the market. It is an important event in the cryptocurrency world and has been a major factor in the price of Bitcoin in the past.

What is Bitcoin Halving?

Bitcoin halving is a process that occurs every 210,000 blocks, or approximately every four years. It is a process of reducing the amount of Bitcoin that is created and released into the market. The process is designed to reduce the rate of inflation of the cryptocurrency and ensure its value is maintained.

When Bitcoin halving occurs, the amount of new Bitcoin released into the market is reduced by half. This means that the number of new coins created each year, or the inflation rate, is reduced by 50%. This is done to ensure that the value of Bitcoin is maintained and to prevent it from becoming too volatile.

How Does Bitcoin Halving Affect the Crypto Market?

The effects of Bitcoin halving on the crypto market are far-reaching. The most significant impact is on the price of Bitcoin. As the amount of new Bitcoin released into the market is reduced, the demand for Bitcoin increases, driving up its price. This is because investors believe that the reduced supply will lead to an increase in the price of Bitcoin.

The halving also affects the mining process. As the amount of new Bitcoin created is reduced, miners are incentivized to mine more efficiently. This increases the difficulty of mining, which in turn increases the cost of mining. This can be beneficial for miners, as it can lead to higher profits.

What Is the Impact of Bitcoin Halving on the CryptoMarket?

The impact of Bitcoin halving on the crypto market is significant. As the amount of new Bitcoin created is reduced, the demand for Bitcoin increases, driving up its price. This is beneficial for investors, as it can lead to higher profits. The halving also has an effect on miners. As the difficulty of mining increases, miners are incentivized to mine more efficiently. This can lead to higher profits for miners. Overall, Bitcoin's halving is an important event in the crypto market. It helps to maintain the value of Bitcoin and can lead to higher profits for investors and miners. It is an event that should be monitored closely by those involved in the crypto market

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Over $100 Million in ETH Re-enters Circulation as Staking Withdrawals Begin

Following the launch of Ethereum 2.0, which allows users to stake their ETH and earn rewards, over $100 million in ETH has re-entered circulation as staking withdrawals begin. In this article, we will examine the current state of the Ethereum 2.0 staking ecosystem and explore the implications of these withdrawals.

👉 1

Staking Contract Sees Significant Outflows In the hours after withdrawals opened, the staking contract has seen significant outflows, with an average of roughly 10,000 ETH per hour leaving the contract. The total outflow currently stands at -66,815 ETH worth $128 million, or .3% of the 18.1 million ETH total.

👉 2

Large Validators and Rewards Withdrawals Of the 19.2 million ETH on the beacon chain, 705,155 ETH from over 19,000 validators is currently awaiting withdrawal. Major entities such as Huobi (38k ETH) and Kraken (22k ETH) are large, looming withdrawals. Notably, the majority of withdrawals are addys withdrawing their rewards, not their rewards + full stake.

👉 3

Staked ETH to Trend Down? At the current pace of withdrawals, it’s reasonable to assume the total amount of staked ETH will trend down. However, there remains strong inflows as well, with over 15k ETH staked on a 24-hour basis. It will be interesting to watch for when inflows meet equilibrium with outflows.

👉 4

$LDO Continues to Dominate In the meantime, $LDO , the governance token for Lido, a popular ETH staking service, continues to dominate. Its price has seen significant growth in recent weeks, reaching an all-time high of $9.27.

Takeaways:

Over $100 million in ETH has re-entered circulation as staking withdrawals begin

The staking contract has seen significant outflows, with an average of roughly 10,000 ETH per hour leaving the contract

Large validators such as Huobi and Kraken are among those making significant withdrawals

The majority of withdrawals are for rewards only, not the full stake

The total amount of staked ETH may trend down, but there are still strong inflows as well

$LDO continues to dominate, with significant growth in recent weeks

Conclusion:

As Ethereum 2.0 continues to evolve, the staking ecosystem will continue to experience fluctuations. These withdrawals may indicate a shift in sentiment among stakers, or they may simply be a temporary blip. Regardless, it will be interesting to watch how the ecosystem evolves in the coming weeks and months.

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#bitcoin #eth2.0 #Ethereum #shapella #cpi