Category: Cryptocurrency News

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A group of global banking experts hosted by the World Economic Forum (WEF) convened about the need for global crypto regulation, including stablecoins and unbacked crypto assets. The panel agreed there must be at least some kind of base regulation for these assets and bank-equivalent regulation for blockchain applications seeking to offer products similar to […]

Flashbots is seeking to raise $50 million with a $1 billion pre-money valuation, according to The Block, citing sources aware of the deal. Pitch To Flashbots For A Chance to Invest As they look to crowdfund, it has been revealed that Flashbots is doing a “reverse pitching” where interested investors have to pitch, not the other way around. In this arrangement, investors confident of Flashbots’ prospects must explain, in detail, why they should have a slot in this investment round. Eventually, the goal is to raise between $30 million and $50 million in “equity investment,” pushing the firm’s valuation to unicorn status. Flashbot plans to split this investment round into two. Although Paradigm didn’t respond publicly to the publication’s request for comment or comment on the inquiry, details reveal that the crypto fund was among the first to show interest. They participated in Flashbots’ seed sale in 2020. However, Flashbots didn’t indicate the amount raised in the seed sale.  Flashbots is a research and development organization claiming to negate the effects of maximum extraction value (MEV) in account-based blockchains like Ethereum and the BNB Smart Chain (BSC). Specifically, Flashbots focuses on Ethereum, where the costs of MEV can be high considering the high on-chain activity and the impact of gas fees, which is also relatively high versus other more scalable networks, including BSC. Their involvement, Flashbots’s documents explain, avoids the “existential risks MEV could cause to state-rich blockchains like Ethereum.” Related Reading: MEV Crypto Bot Gains $1M But Loses Same To Hack Same Day Tackling MEV MEV in blockchains is the maximum value that can be extracted from block production after validators, tasked with confirming transactions and securing the network, include or even re-order transactions in a block. Unlike Bitcoin, where transaction order is given, in Ethereum and similar networks, ordering is haphazard. It means profit-seeking validators can prioritize transactions tagged with higher fees. This explains why whenever the MEV in a block is higher than the network block reward, a validator can decide to re-order transactions in a block, creating vectors for possible centralization and exploitation. Related Reading: ViaBTC Capital | Reasons Behind Solana’s Frequent Downtime: Design Flaws in the Gas Economy Flashbots curbs this problem using MEV Boost. It is software allowing builders to auction blocks to validators, averting MEV centralization. Each party earns a fee for their contribution. Flashbots’s recent open source tool, Single Unifying Auctions for Value Expression (SUAVE), further decentralizes and avails, to everyone, including competitors, the MEV Boost. The reason for open-sourcing SUAVE is novel and meant to help the entire ecosystem grow stronger by proper decentralization. In Devcon Bogota, Philip Daian of Flashbots said: “So, we’re going to use MEV as this decentralized engine in the long term to make sure the users get the best execution on their trades in a way that will make TradFi look embarrassing very shortly.” Feature Image by The Block, Chart from Trading View

The community questioned Bybit’s timing in revealing their exposure, with many demanding proof to back up the reassurance from the CEO.

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Hi All, Ever since moons moved to Arbitrum Nova, I've been trying to find a cheap, KYC-less method of moving funds to/from the networks I use regularly. I use Matic quite a bit so I wanted to share the method I am using there. If anyone has suggestions for cheaper/simpler ways of doing this, I'd…
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The Bitcoin hash rate is trending at near all-time highs, per on-chain data on January 20, 2023. Bitcoin Hash Rate at 274 EH/s According to streams from BitInfoCharts, the Bitcoin network currently has a hash rate of 274 EH/s, up by almost one percent in the past 24 hours. Even at this pace, the hash rate is down from January 16 highs of 302 EH/s. Related Reading: Bitcoin Price Bulls In Check, Signs of Fresh Increase above $21.5K Hash rate is the measure of computing power dedicated to BTC mining. As a proof-of-work platform, the Bitcoin network depends on a community of node operators using Application Specific Integrated Circuit (ASIC) gear for block confirmation and security. ASICs are special nodes explicitly designed to mine cryptocurrencies in proof-of-work networks using, among others, the SHA-256 consensus algorithm. ASICs that can mine BTC can also be used to mine its forks, adhering to a proof-of-work system, including Bitcoin Cash. For confirming a block, a miner is rewarded with BTC. The amount of computing power channeled to the Bitcoin network often fluctuates depending on many factors, including the cost of scarce gear, often from Bitmain, and the price of BTC. In recent years, chipset manufacturers, led by Bitmain, have been tuning their equipment, making them more efficient in power consumption. At the same time, they are packing them with more power. Accordingly, the latest BTC ASICs can dispense more computing power. As an illustration, the Bitmain Antminer S19 XP released in July 2022 can produce 140 TH/s while using 3010W. Meanwhile, the older versions, like Bitmain Antminer S17+, can generate 76.00 TH/s while using more power at 3040W.  Improving efficiency coupled with rising prices may explain the rising hash rate. Since miners are likely to power their gear as Bitcoin prices recover, the hash rate might bounce, even to new all-time highs, in the months ahead. This will be especially true if BTC prices continue to maintain the current trajectory. After months of lower lows in 2022, Bitcoin appeared to have bottomed up in November 2022 at $15,300. Prices are now trending above $20,000, according to TradingView charts. Mining Difficulty Adjusted Upwards Hash rate trends and difficulty readings are proportional. In response to the rising hash rate, near all-time highs, the network automatically increased mining difficulty by double digits to 10.26% on January 16. The difficulty was adjusted upwards by 13.55% on October 10, 2022.  Mining difficulty in Bitcoin changes depending on the hash rate. With more computing power, miners can extract more coins within the allocated 10-minute block-producing time. Bitcoin ensures that this never happens by increasing difficulty, making confirming a block more tasking and consuming more resources. In this way, the 10-minute block-producing time is retained, and the network continues to function as designed, regardless of the investment made by miners.  Related Reading: Bitcoin Might Fall Below $20,000 Before Bull Rally Resumes, Analyst Says In their observation, Binance, which also operates a mining pool, said if BTC prices rise above $23,000, miners using efficient miners would still turn in a profit despite the upward difficulty adjustment. Feature image by Alexander Ryumin/Tass via Getty Images, chart from TradingView.com

Financially I can’t fathom the concept of them being successful. Paying players to play your game is flat out backwards. How can it be profitable for devs. I’m skeptical but looking open to a legitimate explanation. submitted by /u/AminalStyleFries [link] [comments]

Silvergate Capital Corporation, the parent firm of the crypto-focused bank Silvergate Bank, has attributed the $1 billion loss it incurred in the fourth quarter of 2022 to the confidence crisis that permeates the entire crypto ecosystem. While Silvergate has taken steps to help it navigate the current environment, according to the CEO Alan Lane, the […]