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Crypto News: Bonfire for Ethereum: more than 100,000 ETH gone up in smoke from London

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Bonfire on Ethereum (ETH)The network recorded its 100,000th ETH burnt, just under 3 weeks after the London hard fork . However, the latter has not solved the main problem facing network users. And even if an increasing number of ETH transactions use this mechanism of destroying part of the gas costs, the proportion of these transactions does not yet exceed 50%.

Deflation on Ethereum: a London stake at 100,000 ETH

According to The Block , 100,000 Ethers worth $ 300 million were burned on Ethereum , in just 20 days after the London update . This massive burn considerably reduced the level of Aether’s inflation. The Aether supply increased before this mechanism, by about 5% per year . This number would now decrease by 35% thanks to destroyed ethers .

The EIP-1559 , included in the hard fork London that took place on August 5, 2021 , allows users to better estimate the true cost of each transaction . The costs are in fact subdivided on the one hand into basic costs, which go directly to the network and are immediately destroyed, and on the other hand into rewards for minors who process and validate the transactions.

 

London: between unintended consequences and gradual deployment

London had a positive impact on Ethereum’s capacity which increased by around 9% , according to Vitalik Buterin. However, it did not help reduce gas costs . These have even quintupled, going from around 4 USD at the end of July 2021 to 20 USD around the middle of August 2021. The fever of NFTs, with the explosion of the prices of certain “works” like the jpeg of a old stone , would partly explain this increase in transaction costs.

London is already having visible consequences on Ethereum, but the implementation of EIP-1559 does not yet apply consistently to all transactions. CoinMetrics’ newsletter of August 24, 2021 reported an increase in the percentage of ETH transactions using the EIP-1559 . This rate rose from around 23% on August 18, 2021, when MetaMask announced it was starting to implement EIP for its users, to over 40% on August 22, 2021.

The effects of London on network capacity and on the Ether supply were not long in coming. This former Goldman Sachs executive believes that Ether has a better trading configuration than Bitcoin thanks, among other things, to this burn mechanism which would increase the scarcity of Ether and make it deflationary.

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Assembly (ASMB): IOTA’s first step towards smart contracts

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Assembly (ASMB), Iota’s decentralized tier 1 smart contract network, is emerging, at least on paper. The Assembly platform has planned well-known organizational mechanisms to ensure its scale, its security, but also the decentralization of its governance.

Assembly and Iota: smart contracts using sharding

Assembly is revealed in a post of December 2, 2021 published on his blog. Its mainnet will be launched in 2022. Its users will be able to customize the “chain of sharded smart contracts” that they will create using the platform:

“Assembly is a permissionless multi-chain network for building, connecting and deploying smart contracts. The protocol allows anyone to create their own chain of sharded smart contracts, with the ability to define their settings, virtual machine (VM) and validation requirements, and even customize fee and incentive structures. “

Assembly is Iota's decentralized smart contract platform.  Its launch is accompanied by that of its ASMB token.

Sharding solves network scalability problems by reducing transaction validation time. The latter is achieved by a group of nodes of a relatively small size, rather than by the whole network.

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ASMB, the Assembly token: staking, slashing, and governance

Assembly also revealed its ASMB token . The latter will be used to ”  secure, govern and develop the network  “. The ASMB token is all the more necessary for the security of Assembly, because the platform uses a consensus mechanism similar to the proof of stake.

Assembly validators will need to stake their ASMB , and will receive a reward in the form of a newly issued token. They will also be remunerated by transaction fees. Validators breaking the rules will be sanctioned by slashing, which consists of a more or less significant reduction in rewards, depending on the extent of the fault and the quantity of staked tokens. ASMB tokens are also used to ensure decentralized governance of the network . Their holders can make improvement proposals which will be voted on by the community.

70% of the ASMB token offering will be distributed to the community, with a 20% allocation for IOTA holders. The remaining 30% is reserved for first users and the IOTA Foundation.

Smart contracts are one of the central elements of web3, and Iota contributes even more to the adoption of the latter through Assembly. Smart contracts are not only essential for subsectors of the cryptosphere such as DeFi. They can also create a positive break in “more traditional” areas such as contract law .

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$30 billion in staking – Coinbase’s maddening war chest

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Cryptos in the CloudsCoinbase Cloud owns and stakes a significant amount of its customers’ cryptocurrencies. The figures unveiled by the platform seem to support Coinbase’s ambition to become the equivalent of AWS for cryptocurrencies.

Coinbase cloud and cryptocurrency: billions of dollars in digital assets to be staked

On December 2, 2021, Coinbase Cloud revealed that it held $ 30 billion in cryptocurrencies on its platform in November 2021. The platform stakes most of these assets on behalf of its customers, on 25 blockchains using proof of stake, including Ethereum ( ETH) 2.0 , Tezos (XTZ), and Cosmos (ATOM). Coinbase Cloud customers are institutional investors, individuals, but also businesses.

Coinbase ensures the safekeeping of cryptocurrencies and takes a 25% commission on the staking fees. Coinbase Cloud, for its part, earns itself 8% on the remunerative interest of staking. Coinbase acquired Coinbase Cloud, formerly Bison Trails, in 2021 for an amount that would exceed $ 80 million.

Coinbase, the AWS of cryptocurrencies: serving developers and the exchange’s revenue

Coinbase’s product manager, Surojit Chatterjee, indicated in an exclusive interview with Forbes, the exchange’s ambition to become “the AWS of crypto” . Coinbase Cloud is part of these stock market plans:

“We’re building this whole suite of Coinbase Cloud products that you can think of as crypto computing services to help developers build their apps faster.”

Coinbase Cloud is also an additional way for Coinbase to diversify its income without being dependent on the fees they levy on transaction volumes which are correlated with fluctuations in the price of cryptocurrencies. This volume fell 29% in the third quarter of 2021, as the crypto markets were relatively calm. Coinbase’s revenue and profit were then down 39% and 75%, respectively, compared to the second quarter of 2021.

For the moment, the acquisition of Bison Trails seems to be paying off for Coinbase, which continues to acquire companies to develop its ecosystem. Will the purchase of Unbound Security also be beneficial for the exchange that wants to offer an innovative mode of private key management?

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Sale day for Bitcoin: 150 BTC more for El Salvador

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Bitcoins at low pricesBitcoin (BTC) falls below $ 50,000, to the delight of El Salvador who decides to take advantage of the balances to increase its reserve of bitcoins by 150 BTC. The country is not giving in to the pressures of institutions that defend fiat currencies printed excessively.

150 BTC at sale price for El Salvador: a tradition of buying bitcoin dips

On December 4, 2021, the President of El Salvador, Nayib Bukele, announced in a tweet, the purchase of an additional 150 BTC by his government, as the price of bitcoin fell below the $ 50,000 mark. El Salvador was able to buy its bitcoins at an average unit price of $ 48,670 . The bears even managed to temporarily pull bitcoin up to $ 42,000. Bitcoin is trading at $ 48,695 at the time of writing.

The Salavador buys 150 BTC for less than $ 50,000 each.
Publication by Nayib Bukele – Source: Twitter

El Salvador now holds 1,270 BTC . The country had already bought the troughs during a bloody Black Friday that caused bitcoin to lose the $ 54,000. The Salvadoran president also informed of the purchase of 420 BTC on October 28, 2021, when the markets recorded a brief drop of just over 3% in the price of bitcoin in the space of 15 minutes.

El Salvador versus central banks: the scarcity of bitcoin versus the printing press

El Salvador continues to increase its national bitcoin stockpile, and is holding out against pressure from traditional financial institutions . The Governor of the Bank of England, Andrew Bailey, criticized El Salvador’s decision to make bitcoin legal tender , during a lecture at the end of November 2021 given to students of the University of Cambridge. Bukele did not give way and responded to this provocation, indicating that the Bank of England “was printing money out of thin air  “

The President of El Salvador has also issued a criticism of central banks in general, and the American Federal Reserve (FED) in particular, asking them to ”  stop printing more and more money  “.

Adoption of bitcoin in El Salvador is progressing, but the country could further improve it by taking a few steps. Changes in the functioning of the national Chivo wallet could thus benefit the adoption of bitcoin in the country.

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