The post Vitalik Buterin on Layer-2 vs. Layer-1 Trade-offs and ERC-7683 appeared first on Coinpedia Fintech News

Vitalik Buterin has published an article examining the trade-offs in security, speed, and coordination challenges between a layer-2-centric ecosystem and a more centralized layer-1 approach. He opines that, in a technical sense, a layer-2-centric system effectively functions as sharding. Additionally, Buterin sheds light on the ERC-7683 standard, a dependable option for cross-chain token exchange. This highlights the significance of evolving standards to facilitate smoother interoperability across different layers of the blockchain

Hex Trust, a leader in the digital asset management and custody sector, recently made headlines by issuing the first stablecoin native on the Layer-1 Flare blockchain. 

Called USDX, this stablecoin is pegged on a 1:1 basis with the US dollar and offers several innovative features that could potentially transform the landscape of digital currency.

Overview of USDX: the first stablecoin on the Layer-1 Hex blockchain

USDX is designed to maintain a stable value by being directly backed by the US dollar or equivalent valuable assets.

This approach ensures that USDX maintains a constant value relative to the dollar, making it an attractive option for users seeking stability in the often volatile cryptocurrency markets.

The introduction of USDX on the Flare blockchain is particularly notable because it marks one of the first examples of a stablecoin fully integrated into a Layer-1 blockchain solution.

Flare is a Layer-1 blockchain that aims to bring greater scalability, faster transaction speeds, and lower costs to its users. By leveraging the Flare network, Hex Trust can capitalize on these features to offer a more efficient and cost-effective stablecoin experience.

Flare’s blockchain is also known for its unique consensus mechanism, which combines elements of the Avalanche and Federated Byzantine Agreement systems. This hybrid model allows for high throughput and low latency, ideal for the needs of modern financial applications.

One of the most convincing aspects of USDX is the opportunity for users to earn a return in the real world.

Users who stake their USDX on the Flare blockchain are rewarded with cUSDX, a secondary token that represents the staked USDX and accumulates additional gains over time.

This staking model not only provides an incentive to hold USDX but also helps stabilize the supply and demand dynamics.

The launch of the stablecoin

The concept of yield in the real world is a revolutionary feature in the field of stablecoin. It implies that the returns on USDX staked are linked to assets that generate income outside the world of cryptocurrencies.

This could include returns from debt instruments, dividends from stocks or other financial products. 

By linking staking rewards to real-world assets, Hex Trust and Flare are bridging the gap between traditional finance and cryptocurrencies, offering investors a familiar yet innovative way to interact with digital assets.

The launch of USDX could have significant implications for both retail and institutional investors. For everyday users, the stability and easy convertibility of USDX make it a practical choice for transactions and savings. 

On the other hand, institutional investors may find USDX attractive due to the staking opportunities and integration with a scalable blockchain like Flare, which could handle large transaction volumes at lower costs.

Furthermore, USDX could be used as protection against volatility in other cryptocurrency investments. In times of market turbulence, investors may shift their assets to USDX to preserve value, and then convert them back when conditions stabilize.

Benefits and conclusions

Given that stablecoins have been under increasing scrutiny from regulators around the world, the launch of USDX comes at a critical time. 

Hex Trust’s approach to compliance and security, through its custody and asset management services, can provide a model on how stablecoin can meet regulatory expectations while providing safe and transparent financial services.

Furthermore, by operating on the Flare network, USDX benefits from the enhanced security measures intrinsic to the design of the blockchain.

These features ensure that USDX transactions are not only fast and efficient, but also secure and resistant to various types of cyber threats.

The introduction of USDX by Hex Trust on the Flare blockchain represents a significant milestone in the evolution of digital currencies. 

Combining stability with performance opportunities in the real world, USDX sets a new standard for what stablecoins can offer. 

While the landscape of digital assets continues to evolve, the role of innovations like USDX will be crucial in shaping the future of finance, combining traditional financial principles with the benefits of modern technology.

🔒 Exploring SafeCoin: A DeFi Platform on Solana 🔒
🚀 Let's dive into key features and potential of #SAFE in this captivating thread! 🧵👇
1️⃣ Introduction and Overview: SafeCoin, based on Solana, offers lightning-fast performance and $SAFE as its primary token. Unlike mining, it's acquired via purchase, trade, or staking rewards. SafeCoin serves as a DeFi platform for apps and tokens.
2️⃣ Technology and Features: Utilizing Proof-of-Stake and Solana's code base, SafeCoin ensures efficiency and scalability. Its Proof-of-History mechanism enhances speed, affordability, environmental friendliness, accessibility, and privacy.
3️⃣ Whitepaper Analysis: Safe pursue a future where everyone has complete control and flexibility over their digital assets. Its vision is to move from merely reading and writing in the digital realm to fully owning our digital identities, financial assets, digital art, and more.
4️⃣ Use Case: SafeCoin provides a secure environment for DeFi transactions, with $SAFE tokens serving various ecosystem purposes.
5️⃣ Team and Leadership: SafeCoin's team, including co-founders Tobias Schubotz, Richard Meissner, and others, brings expertise and dedication to the project's success.
6️⃣ Partnerships: Strategic partnerships enhance Safe Coin's capabilities, Safe coin is available on 14+ top industry networks like Arbitrum, Avalanche, Base etc.
7️⃣ Security and Audits: Safe Smart Accounts are the most audited and battle-tested. Since 2018, its smart contracts have passed the highest possible security standards in the industry including formal verification.
8️⃣ Tokenomics: With a max supply of 1 billion SAFE tokens, initial circulation stands at 427 million. Allocations include user participation, ecosystem contributors, and more.
9️⃣ Exchanges: SAFE tokens are tradable on decentralized and centralized exchanges like Uniswap V3 (Ethereum), Coinbase, Bybit, Gate.io, BitMart, and OKX, offering liquidity and accessibility.
🔟 Conclusion: SafeCoin's team, technology, and clear use case position it as a promising project in the DeFi space. The combination of Proof-of-Stake and Solana's efficiency makes it an attractive platform for users and investors alike.
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According to Odaily, Layer1's blockchain project, Initia, has announced the launch of its incentivized public testnet, Initiation-1. The testnet is set to run for a period of eight weeks. The mainnet is expected to go live later this year.

Participants in the testnet will have the opportunity to explore Omnitia, use testnet applications, join the Initia Militia, complete tasks, and collect NFT cards. These cards can be combined to summon the 'Forbidden One'. The initiative is part of Layer1's efforts to engage users and test the functionality of their blockchain before the mainnet launch.

The launch of Initiation-1 is a significant step for Layer1 and Initia, as it allows for real-world testing and user feedback. This will help the team to identify and rectify any potential issues before the mainnet goes live. The use of NFT cards and the 'Forbidden One' adds an element of gamification, which could potentially increase user engagement and participation in the testnet.

The post Solana Surpasses Ethereum in Total Economic Value appeared first on Coinpedia Fintech News

Solana has outpaced Ethereum for the first time in its history, as its Total Economic Value (TEV) has surpassed Ethereum. According to Blockworks Research, Solana generated $2,248,681 in TEV, surpassing Ethereum’s $1,977,416. TEV is used to analyze the utility and adoption of a blockchain network. However, critics argue that comparing Solana’s TEV with Ethereum’s without considering Layer-2 (L2) solutions is misleading. L2 solutions are designed to enhance scalability and reduce fees by offloading activity from Layer 1 (L1). Despite the criticism, comparing TEV across blockchains remains valuable. As Burniske explained, each L2 operates in its own blockspace environment, and TEV comparisons are typically made on an L1-to-L1 basis.

🔍 Discover the Future of Data Infrastructure with Nuklai (NAI) 🔍
🚀 Let's dive into key features and potential of #NAI in this captivating thread! 🧵👇
1️⃣ Introduction and Overview: Nuklai (NAI) is a Layer 1 blockchain infrastructure designed to empower new AI through sophisticated data infrastructure and distributed services. It serves as a collaborative data marketplace and infrastructure provider.
2️⃣ Technology and Features: Nuklai combines AI and blockchain technology to enable a decentralized platform for data sharing, monetization, and AI model training. It specializes in supporting the data ecosystem and AI with data management and computational power.
3️⃣ Whitepaper Analysis: Nuklai is the nucleus of the Nexera ecosystem, unifying the data landscape and enhancing the capabilities of large language models (LLMs) and artificial intelligence (AI). It bridges the gap between data enthusiasts, businesses, and institutional partners, revolutionizing industry collaborations.
4️⃣ Use Case: The NAI token is used for network transaction fees, validator rewards, and governance control. It powers the Nuklai ecosystem, rewarding contributors and facilitating compute power distribution within the network.
5️⃣ Team and Leadership: While specific team members weren't found, Nuklai has made significant strides in becoming the global standard for data infrastructure and AI model training.
6️⃣ Partnerships: Nuklai's partnerships with DePIN Brainstems and its Bitcoin Sentiment Research campaign highlight its commitment to community engagement and innovation in the crypto space.
7️⃣ Security and Audits: Nuklai's smart contract has been audited for security, ensuring the safety of the platform. While specific details about audit weren't found.
8️⃣ Tokenomics: With a total token supply of 10 billion NAI and a current supply of 853 million, Nuklai offers ample opportunities for participation in its ecosystem.
9️⃣ Exchanges: NAI tokens can be traded on various decentralized and centralized exchanges, with MEXC, Gate.io & Uniswap V2 being the popular choices.
🔟 Conclusion: Nuklai (NAI) is set to revolutionize data sharing and AI model training, offering a unique value proposition in the crypto space. Nuklai continues to make strides in the crypto space, offering innovative solutions for data infrastructure and AI model training.
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