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Bitfury’s CIO asserts PoW should grow with increase in market cap

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Bitfury's CIO asserts PoW should grow with increase in market cap
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As Bitcoin’s valuation retreated, the king coin’s other network metrics have also made a significant rise. BTC’s mining difficulty hit an all-time high after surging by 11.26% to 7.46T. The cryptocurrency’s hash rate also continued to maintain an upward trend. At press time, BTC’s stood at a hash rate of 43,386 TH/s.

Amidst reports of Bitcoin’s Hash Power growing at a steady pace, Alex Petrov, the Chief Information Officer of Bitfury, in a panel at Magical Crypto Conference earlier this May, said that Bitcoin hash rate was growing because it was a “natural protection barrier” to shield the market cap cost of the Bitcoin blockchain. He explained,

“For example have a coin and there is $10,000 in the market cap, so the cost of an attack should be an out high to protect the 10,000 market cap of the coin from the external attacks”

The CIO of the leading blockchain company further said that this was usually so in the case of Proof-of -Work-based digital coins. According to Petrov, PoW should be proportional to the market cap of the coin, ie, PoW should “grow” with the increasing market cap.

Petrov also said that Bitcoin mining using CPUs was highly susceptible to a network attack, hence, the hash rate “should keep the barrier” high enough to “disallow any attack attempt” on the network.





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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.

Bitcoin

ErisX goes all hands on deck to launch a Bitcoin Futures market

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ErisX goes all-hands on deck to launch a Bitcoin Futures market
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ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.

ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.

The CSO explained the benefit of this, stating,

“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “

Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,

“… so there is some efficiency in terms of managing collateral, if you don’t have assets on  multiple platforms, it can all be in our clearinghouse.”

Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,

“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”

Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.





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