Vitalik Buterin, the co-founder of Ethereum, recently spoke about whether there were other projects inside or outside the blockchain ecosystem that were using Proof of Stake [PoS]. He also the key difference in Ethereum’s Proof of Stake [PoS].
Buterin started by speaking about other Proof-of-Stake projects, quoting the example of Tezos as a simpler version of PoS. He further added that PoS “is fairly popular”, however, the PoS which are present in the space is “fairly simplistic”. The co-founder stated that the Foundation is planning on launching a “much more powerful” Proof of Stake in a lot of ways comparison to others.
He further elucidated on how Ethereum’s Proof-of-Stake is going to different than the “simplistic” versions. He said that the simplistic version “basically replicate” the structure of the PoW, wherein the randomness of the mathematical puzzles that people solve with computers is replaced with randomness that gets virtually simulated inside of the blockchain.
“So, you still have structure where get a block and a block on top of a block and on top of a block. And that kind of structure is nice because it’s very simple and very little overhead, but it’s also a terrible because it takes a long time for blocks to come to consensus”
For this, Buterin quoted the example of Bitcoin, wherein there has to be six confirmations which would approximately take an hour for the confirmation of a transaction, adding that Proof of Stake chains “don’t work in a similar way, they basically inherit those weaknesses.”
He went on to say:
“Our approach to proof of stake combines together some of the insights from these older chain based goals of proof of stake with Byzantine false theory […] our idea is to take those algorithms. First of all kind of merge them together with proof of stake and second, we came up with an algorithm that has some intermediate properties between the properties of the older BFD algorithms and chain based PoS.”
Butern further stated:
“So in our case, we have a version of this algorithm that takes longer time to come to a final consensus, but still not too long […] and the benefit that this gives you is that within something like five seconds you get a sort of soft agreements that this block is probably part of the history forever. And then in a couple of minutes that soft agreements operates to a final finale, it’s not going back”
76284|Ethereum [ETH/USD] Price Analysis: Coin bids adieu to bull market as bears take over
Ethereum [ETH], the second largest cryptocurrency by market cap, indicated the presence of both the bull and the bear. According to CoinMarketCap, the cryptocurrency was trading at $136.39 with a market cap of $14.36 billion, at press time. The coin displayed a trading volume of $5.06 billion, and a rise of 1.47 percentage in the past seven days. The coin also dropped by 2.79 percentage in the last 24 hours.
1-hourIn the one-hour chart, the cryptocurrency demonstrated downtrends from $142.52 to $138.83, and from $138.43 to $134.85. The uptrend for the coin was outlined from $132.91 to $134.49.
The coin’s immediate resistance was pictured at $138.94, and strong resistance was laid at $140.21. The immediate support for the cryptocurrency was found at $132.75, and there was strong support at $130.69.
Parabolic SAR indicated a bullish market for the coin as the dotted lines were below the candlesticks.
Chaikin Money Flow forecast the opposite, as the money flow took the exit route.
Bollinger Bands diverged, suggesting some volatility and price movement for the coin.
1-dayIn the one-day chart, the downtrends were displayed from $218.66 to $157.56, and further from $157.55 to $138.72. The first uptrend for the currency was drawn from $82.92 to $103.22, while the second extended from $103.22 to $134.41.
The immediate resistance for the cryptocurrency was at $140.53, and strong resistance was at $157.60. The coin’s immediate support was at $125.09, and strong support was seen at $103.13 and $82.79.
Klinger Oscillator showed that the bull was losing out as the reading line was pictured below the signal line after a crossover.
RSI indicated that the buying pressure and selling pressure for the cryptocurrency evened each other out.
MACD forecast the bear’s position to be well ahead of the bull, as the moving average line dipped below the signal line right after a crossover.
The market suggested a strong bearish presence for the cryptocurrency, and a fading bullish presence. This was attributed to the MACD and Klinger Oscillator from the one-day chart, and CMF from one-day chart siding with the bear.
76127|Ethereum’s [ETH] Vitalik Buterin says ETH’s crowd sale being classified as securities sale is not worrisome
Vitalik Buterin, Co-founder of Ethereum [ETH], spoke about the recent ‘Ethereum is not a security’ controversy, during the Unchained Live event with Laura Shin.
Earlier this week, U.S. Securities and Exchange Commission Chairman, Jay Clayton, stated in a letter to Coin Center that he agreed with the statements made by William Hinman, the Former Director of Corporate Finance – SEC. The statement he agreed to was that, a token offered for sale could be initially be a security, but its designation could change over time if it did not meet the definition of the investment contract or the Howey framework.
Interestingly, Hinman had used Ethereum’s token, Ether, as an example for this explanation during his speech. Hinman had said, “The present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether,” are not classified as securities transactions. This remark disregarded the fundraising aspect to the creation of Ether.
During the event, Laura Shin stated that based on the SEC’s remarks, it was likely that the crowd sale of Ethereum would be considered a violation of securities laws. This was followed by Shin asking Vitalik Buterin if he was “worried about an enforcement action” against him, and the other co-founders.
To this, Buterin replied,
“It’s something, so far, we haven’t like seen anything suggesting it is, anything like that happening. I mean we definitely have like our lawyers and legal teams and they’re definitely are watching the situation closely but so far we haven’t seen any reason to be worried for ourselves”
Following this, Shin asked Vitalik Buterin whether this was something he would stress about. Buterin responded, “I would say, no. And, probably what mainly listening to our lawyers and legal teams at this point.”
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