Ethereum

Why the Ethereum Layer-2 Taiko network is spending $100,000 a day on blobs

Published

8 months ago

8 June, 2024

Why the Ethereum Layer-2 Taiko network is spending $100,000 a day on blobs

A Ethereum layer-2 The network called Taiko dominates the market for what we call blobsor dedicated data storage for Ethereum scalers, but these efforts result in costs of tens of thousands of dollars every day for the little-known scaling solution, even surpassing the $100,000 mark several times this week.

The Taiko protocol, which went live in late May, aims to offer users cheaper and faster transactions than on Ethereum’s mainnet, while borrowing security elements from the network. Since going online, Taiko has spent a whopping $900,000 in blobs in less than two weeks to funnel user transactions into the Ethereum network.

Meanwhile, Taiko’s competitors, like Optimism network, rarely spend more than $1,000 per day on Blob-related fees. Introduced in March under the name part of an Ethereum upgradeblobs were introduced as a new resource for layer 2 scaling networks to publish Ethereum transactions at a lower cost.

Taiko Labs, creator of the protocol announcement in March, it had raised $15 million in a Series A funding round. By leveraging “zero-knowledge” cryptography in its design, Taiko is working to differentiate its scalable design in a growing field. more competitive that includes dozens of different scalable networks.

“Taiko just launched its mainnet, and there is a lot to discover before it becomes stable,” said Daniel Wang, CEO of Taiko Labs. Decrypt in a written statement. “We knew we would use more blobs than other Layer 2s. This is a design decision, not a bug.

Layer 2 networks often work by aggregating batches of transactions and processing them on a separate chain before sending the receipts back to Ethereum. However, Taiko’s design differs from this formula, in which many transactions are grouped into batches elsewhere.

Instead, the process of ordering transactions, called sequencing, takes place on Ethereum itself. In a blog postTaiko Labs said this process, called “core sequencing,” is more decentralized than other Layer 2s that rely on centralized sequencers, which are controlled by a network’s development team and collect a small part of user fees.

“It seems expensive,” Alexei Zamyatin, co-founder of Bitcoin BOB layer 2 network, known as Decrypt in an interview. “This makes it more secure, but not as secure as [Ethereum]and you are also much more expensive than most layer 2s.”

A game of compromises

Still, Wang said the costs associated with Taiko’s features could easily break even if “Taiko is fully utilized by users,” providing a sustainable amount of gas fees.

Wang added that Taiko is fully aware of the pros and cons associated with its sequencing method, and he hopes that Ethereum researchers will study Taiko’s on-chain data to explore improvements that could allow Ethereum to better support similar scaling networks.

Some Ethereum researchers, including Justin Drake, believe that Taiko’s team is at the forefront of a new form of decentralized sequencing that could solve major obstacles in the Ethereum ecosystem.

“This takes a step forward in decentralization, credible neutrality and composability of rollups,” he said. Decrypt in a written statement.

If more Layer 2 networks moved the sequencing of their transactions to Ethereum itself, then the fragmentation issues holding up all the space could be resolved, he said. Currently, liquidity and assets are widely distributed across different Layer 2s, effectively siloing users and applications within a given scaling solution while all being tied to Ethereum.

When it comes to Layer 2 networks on Ethereum, the introduction of blobs represented a significant change in how these protocols interact with the underlying blockchain. Before blobs were available as a separate paid marketplace, Layer 2s could only publish bulk transactions as Ethereum “call data,” a space for data to be contained within transactions.

Instead of mass-processing user transactions alongside regular Ethereum activity, blobs almost serve as a dedicated lane on a highway, where less congestion can reduce costs. However, the best way to package these transactions before shipping is still up for debate.

Blobs blobs blobs

In some cases, centralized sequencers can be used to paralyze a network, piercing the veil of permissionless activity that is synonymous with crypto. Sometimes centralized sequencers can be abused to delay transactions Also. However, Taiko’s commitment to decentralization may not be the most effective, according to one of its community advocates.

“Unfortunately, it’s a bit expensive,” pseudonymous cryptography researcher arixon.eth. said on Twitter (aka X). “Due to sequencing, we need to release a blob every 12 days. [seconds]and if there isn’t enough [transactions]then we just won’t fill the blobs.

Taiko Labs’ Wang said changing this pace could be a potential solution adopted soon, stating that the Taiko community is “considering reducing the block proposal frequency a bit.”

The constant flow of blobs, no matter how full they are, has made Taiko one of the top users. On Sunday, for example, Taiko released 25% of all blobs on Ethereum, according to a popular poll. Dune Dashboard. That day, Taiko spent nearly $63,000 in blob-related fees.

On Thursday, Taiko paid $123,000 in fees for blobs, representing 73% of all costs paid for Layer 2s, which was its second day in a row with a six-figure fee total. And while most Layer 2s pass on the cost savings to their users through lower fees, the premium Taiko pays for decentralization, for now, is not a bill users must foot.

“For the moment, it is partially subsidized by the team”, arixon.eth saidadding that the process could be changed in the future so that “blocks are missed until there are enough blocks.” [transactions] in the mempool for a proposer to push a block to [Ethereum] profitably.”

On Wednesday, during the first airdrop of TAIKO tokens, the network’s native cryptocurrency, Layer 2 averaged about 6.42 transactions per second, according to L2BEAT. Meanwhile, Ethereum recorded around 13.6 transactions per second itself.

The performance of Taiko’s token has been rocky so far. After crashing 40% an hour after its launch, from $3.80 to $2.27, the token’s price recovered to $2.45, at the time of writing, showing a drop of almost 3% over the last day, according to CoinGecko.

Edited by Andrew Hayward

Fuente

Ethereum

Ethereum (ETH) Whales Are Getting Incredibly Bullish: Details

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Ethereum (ETH) Whales Are Getting Incredibly Bullish: Details

Cover image via www.freepik.com

Disclaimer: The opinions expressed by our editors are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not responsible for any financial loss incurred while trading cryptocurrencies. Do your own research by contacting financial experts before making any investment decisions. We believe all content to be accurate as of the date of publication, but some offers mentioned may no longer be available.

Ethereum (ETH) Whales are making major moves in the cryptocurrency market, suggesting strong bullish sentiment despite short-term price volatility. According to crypto analyst Ali Martinez, these big investors have accumulated over 126,000 ETH in the last 48 hours, or about $440 million.

In a tweet, Ali wrote: “Ethereum whales have accumulated over 126,000 ETH in the last 48 hours, worth around $440 million.”

According to CryptoQuant CEO Ki-Young-JuWhales may be preparing for the next move in the market. Ju wrote in a tweet that “whales may be preparing for the next rally in altcoins.” He noted that the volume of limit buy orders for altcoins, excluding Bitcoin and Ethereum, is increasing, indicating that strong buy walls are being put in place.

Ethereum’s recent developments, including the recent launch of Ethereum spot ETFs in the US, appear to have increased its appeal among large holders, known as crypto whales. Ethereum recently celebrated nine years since its inception, and as the ETH network continues to evolve, it is likely to attract more institutional interest.

According to data from Farside Investors, fund flows into U.S.-listed Ethereum spot exchange-traded funds turned net positive daily for the first time since their inception on July 31, primarily due to a decrease in outflows from the Grayscale Ethereum Trust.

Ethereum Price Drops Due to Market Crash

Bitcoin and Ethereum, along with the majority of other crypto assets, appear to be underperforming during Thursday’s trading session.

According to CoinMarketCap dataAt the time of writing, Bitcoin’s price was $64,034, down 2.77% from the previous day. Ethereum’s price is down 4.21% from $3,175, where it was 24 hours ago. Several cryptocurrencies were posting larger losses; Solana’s Dogwifhat was down 12% in the past 24 hours, and PEPE was down 7% in the same period.

According to CoinGlass, price followers have led to the liquidation of $225 million worth of derivatives contracts over the past day.

Fuente

Ethereum

Ethereum (ETH) Price Hits $50,000? Target Updated by Analyst

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Ethereum (ETH) Price Hits $50,000? Target Updated by Analyst

Vladislav Sopov

Extreme skepticism from Ethereum (ETH) detractors has prompted a veteran researcher to double down on Ether

Read U.TODAY on

Google News

Ethereum (ETH) proponent and AI enthusiast Adriano Feria has presented an extremely optimistic Ether price prediction. After the reaction of skeptics, he reconsidered the target, increasing it by 100%. His views are aligned with those of major institutional players, according to recent data.

Ethereum (ETH) bullish hypothesis should get us there: researcher

Ethereum (ETH) could hit $50,000 early in the current cryptocurrency market cycle. At the same time, a “bullish scenario” could push the price of the second-largest cryptocurrency to six-digit values, Web3 and AI educator Adriano Feria told X.

In a tweet shared with his 14,000 followers, Feria stressed that he is confident in the promising prospects of Ethereum (ETH) despite the massive wave of hatred against Crypto X. The doubters will regret their skepticism, the researcher admits:

If you hold ETH today, you are truly part of the global elite, because the bullish scenario for ETH should take us to $100,000. You think this is a joke, but there are real financial institutions around the world that have set bullish targets that are close to this. And no, this is not a joke.

Three days ago, he “increased” the $28,000 per ETH prediction published by Eric Conner, a veteran of the Ethereum (ETH) ecosystem and co-author of EIP 1559.

These ultra-bullish statements come amid growing disbelief triggered by ETH’s weak short-term performance.

The second-largest cryptocurrency failed to take off following the launch of the Ether ETF in the United States. At press time, Ethereum (ETH) was trading at $3,311, down nearly 6% from the local peak set after the ETF launched on July 23.

Insane BTC and ETH Price Predictions Released Every Day

As previously reported by U.Today, in February, Feria noted the rapid increase in popularity of ETH staking based on on-chain data.

In recent days, more and more analysts are sharing incredibly high predictions for Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies.

For example, US asset management heavyweight VanEck has suggested two scenarios for the price of BTC in 2050.

The most optimistic scenario sees BTC surpassing $52 million per coin, while the $2.9 million mark is considered a “baseline” scenario by VanEck.

About the Author

Vladislav Sopov

Blockchain analyst and writer with a scientific background. 6+ years in computer analysis, 3+ years in blockchain.

I have worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Fuente

Ethereum

Lloyd’s of London-backed insurance policies can now be paid in crypto on Ethereum

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Lloyd's of London-backed insurance policies can now be paid in crypto on Ethereum

Lloyd’s of London, the three-century-old insurance marketplace, is supporting digital asset protection policies curated on the Ethereum public blockchain that can be paid for natively, on-chain, using cryptocurrency, through Lloyd’s Coverholder Evertas and smart contract insurance provider Nayms.

Not so long ago, any kind of cryptocurrency insurance coverage Finding solutions was difficult. Aside from the efficiency benefits of paying for insurance policies in cryptocurrency and using blockchain to streamline the burdensome paperwork of intermediaries, a consortium of Lloyd’s of London syndicates backing cryptocurrency-native, on-chain insurance shows how far the industry has come in the last two years.

“We’re enabling people using public blockchain infrastructure to interact with traditional, highly regulated, fiat-backed institutions in a transparent way,” Evertas CEO J. Gdanski said in an interview. “Whether it’s paying in USDC or native cryptocurrency, or placing policies entirely on-chain with blockchain helping coordinate between a broker, the policyholder, and insurers, we believe this is a foundational infrastructure.”

Nayms, a digital marketplace where brokers and underwriters connect with crypto capital investment, is a play on Lloyd’s “names,” the collection of individuals and companies that underwrite risks in the historic insurance market.

“The native cryptocurrency expertise we bring to the underwriting process gives us a deep understanding of the risks we insure,” Nick Selby, the company’s head of European underwriting, said in an interview. “It means we’re very explicit about what we do and don’t cover, and we can pay insured claims faster than anyone else.”

Fuente

Ethereum

10 Years of Crypto Innovations! Here’s How Buterin Sees the Future of Ethereum!

Published

6 months ago

31 July, 2024

BlockChainGuardian Staff

10 Years of Crypto Innovations! Here’s How Buterin Sees the Future of Ethereum!

2h45 ▪ 3 min read ▪ by Eddy S.

At the EDCON2024 conference, Vitalik Buterin unveiled the future directions of Ethereum, with a focus on innovative application development and wallet security. He presented promising projects and innovative ideas to improve privacy and accessibility for cryptocurrency users.

Ethereum’s new innovations by Vitalik Buterin!

Vitalik Buterin delivered a key speech on the future of Ethereum in the next ten years. He stressed that the priority of the crypto blockchain will now be to develop applications. Some of the already successful applications include decentralized finance (DeFi), decentralized identities (DID) with the Ethereum Name Service (ENS), DAOs and NFTs.

Vitalik also highlighted several promising projects. These include the prediction market Polymarket, the social media aggregator Firefly, the wallet Daimo, and the voting tool Rarimo. These applications illustrate the diversity and potential of Ethereum-based technologies to transform various sectors of crypto.

Vitalik also proposed several innovative ideas to improve the security and accessibility of Ethereum wallets. One of his proposals is to encrypt the private key directly into the cell phone’s chip! Thus turning the phone into a secure crypto wallet. Another idea is to place part of the private key in a regulatory-compliant custodial institution, thus providing an additional layer of security.

Vitalik also mentioned the use of zero-knowledge (ZK) proof technology to link KYC information to the wallet. This approach would ensure the privacy of cryptocurrency users while meeting regulatory requirements.

Security and Privacy: Two Requirements for Cryptocurrency Users

These proposals aim to improve the security and privacy of cryptocurrency users while facilitating the adoption of the technology by a wider audience. By combining technological innovations with practical applications, Ethereum continues to position itself as a leader in the cryptocurrency and blockchain ecosystem.

Vitalik Buterin’s speech highlighted Ethereum’s many advancements and future prospects. With a focus on application development and innovative proposals for crypto wallet security, Ethereum is well-positioned to continue to grow and innovate in the years to come.

Optimize your Cointribune experience with our “Read to Earn” program! Earn points for each article read and access exclusive rewards. Sign up now and start earning benefits.

Click here to join “Read to Earn” and turn your passion for crypto into rewards!

Avatar of Eddy S.

Eddy S.

The world is changing and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in everything that is closely or remotely related to blockchain and its derivatives. To share my experience and promote a field that fascinates me, there is nothing better than writing informative and relaxed articles.

DISCLAIMER

The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.

Fuente