The push for “distributed validator technology,” is viewed as a key next step on Ethereum’s path to further decentralization. |
June 14, 2023
Exploring the tech behind crypto
one block at a time
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Hi, Margaux Nijkerk here, CoinDesk’s Ethereum protocol reporter, subbing in for Bradley Keoun this week.
In today’s issue, we’re covering “distributed validator technology,” or DVT, which is viewed as a key next step on Ethereum’s path to further decentralization. We also have news on the next version of Uniswap’s decentralized exchange, Alchemy’s just-launched AI developer suite, and The Graph’s plans to migrate its blockchain-indexing platform away from Ethereum’s layer 1 network in search of lower fees and quicker transactions.
‘Distributed Validator Technology’ Marks Last Key Milestone in Ethereum’s Current Era
Decentralization is a pillar of the blockchain ethos, and Ethereum developers are now prioritizing a new design feature that could take the precept to the next level.
The push is for “distributed validator technology,” or DVT. The Ethereum blockchain depends on 606,947 validators to confirm transactions made on the network, per BeaconScan, but each of those individually might be seen as a point of failure.
What’s more, the validators themselves can be subject to stiff financial penalties known as “slashing” when they go offline for extended periods. So the validators also have an incentive to increase their own resiliency.
But can the validators themselves become decentralized? Read on.
Illustration of setup where three of four node operators would be needed to cast a validator vote. (leoglisic.eth)
Under the technology, a validator’s private key – used to sign on-chain operations like block proposals and attestations – can be split across several node operators. As a result, the duties and responsibilities of a validator can be distributed and shared across a cluster of node operators, instead of a single node.
Distributed validator technology “allows you to have multiple parties running a single validator,” said staking service provider P2P’s head of Research Steven Quinn to CoinDesk. “From a technical perspective, what that means is you can geographically distribute the machines.”
Bittrex, Inc., et al., have established bar dates for submitting proofs of claim. Persons and entities that agree with their claim as listed in the Schedules [Docket Nos. 87, 91] or otherwise exempted need not submit a proof of claim. Otherwise, all persons and entities that assert a claim against Bittrex, Inc. and its affiliates must submit a proof of claim before the applicable bar dates outlined in the Bar Date Notice [Docket No. 107-3].
Network News
Sandeep Nailwal, co-founder of Polygon (Danny Nelson/CoinDesk)
Polygon, the popular Ethereum scaling solution, announced its plans to unveil ‘Polygon 2.0,’a blueprint to revamp its entire ecosystem. Over the next four weeks, Polygon plans torelease its vision on how it is going toupdate its MATIC token, the Polygon PoS chain, Polygon protocol governance, and network architecture.
Over the last two weeks, Bitcoin miners transferred $174 million worth of coins to centralized exchanges. On average, this marked the highest average miner transfers in a two-week period since March 2021, according to Glassnode. Increased miner transfers are generally an indicator that miners expect to see an increase in bitcoin’s price.
ConsenSys, a leading Ethereum development firm, held its first shareholder vote in over two years last week. The company has been accused of squeezing former employees out of shares, and has found itself in a legal battle with former staff members.
Also:
Attackers behind Atomic Wallet’s $35 million exploit moved the stolen funds via OFAC-sanctioned exchange Garantex, says blockchain security firm Elliptic. The blockchain investigators believe that the hack, which took place earlier this month, was performed by Lazarus, a North Korean hacking group.
Staking provider Chorus One announces that it is expanding to peer-to-peer network Urbit with its new hosting service, “Red Horizon.”
Protocol Village
Highlighting blockchain tech upgrades and developments.
Uniswap booth at ETHDenver (Danny Nelson/ CoinDesk)
Uniswap Labs unveils draft code for Uniswap v4, the next version of its decentralized exchange platform, and opens it up for public review ahead of a yet-to-be-scheduled launch.
Alchemy,one of the leading blockchain developer platforms, launches AlchemyAI – an AI chatbot to help Web3 developers build software more quickly, and a ChatGPT plugin to enable easy on-chain data searches.
Gensyn, provider of blockchain-based computing resources for AI platforms, raises $43 million in a Series A funding round. (Andreessen Horowitz, CoinFund, Canonical Crypto, Protocol Labs, Eden Block)
Meanwhile, a startup aiming to offer bitcoin-denominated life insurance, raises $19 million across two funding rounds to help develop AI-backed policies. (OpenAI CEO Sam Altman, former Stripe executive Lachy Groom, Gradient Ventures.)
Lens Protocol, the decentralized social media platform from the team behind the Aave lending protocol, raises $15 million in new funding. (IDEO CoLab Ventures, General Catalyst, Blockchain Capital. Palm Tree)
Bank of China’s investment banking arm BOCI became the first Chinese financial institution to issue tokenized securities on a public blockchain in Hong Kong after offering structured notes on Ethereum.
Binance.US, which is among the centralized crypto exchanges recently sued by the U.S. Securities and Exchange Commission (SEC), sees liquidity measured by market depth decrease 76% in one week following the SEC’s suit.
Blur, a non-fungible token marketplace, is having a token unlock on Wednesday, June 14 which will release almost 196 BLUR million tokens worth about $62 million, representing nearly 40% of the token’s current circulating supply.
Learn
What is a crypto foundation?These crypto organizations share a not-for-profit status but can have different goals and methods of supporting blockchain projects, Griffin Mcshane writes.
Data Corner
Last week marked a significant escalation in the U.S. Securities and Exchange Commission’s (SEC) crackdown on the cryptocurrency sector, with the agency taking legal action against leading centralized exchanges, Binance and Coinbase. The SEC accused both companies of facilitating unregistered securities sales, among a host of other charges, although the specific charges differed between the two suits.
Users reacted to this news by withdrawing funds from both platforms, although to varying extents. For instance, Binance saw a dramatic decrease in its bitcoin balance, with a drop of over $1 billion – accounting for approximately 5.7% of its total holdings – since the SEC’s action on June 5. In contrast, Coinbase’s bitcoin balance decreased by about $46 million since it was sued, a dip representing less than 1% of its total bitcoin holdings.
The cryptocurrency community has a great story to tell, but it urgently needs to tell it, CoinDesk Executive Editor Marc Hochstein writes. At least, that is a recurrent theme throughout CoinDesk’s first-ever Consensus @ Consensus report, out this week. Based primarily on intimate group discussions that took place at Consensus 2023, it covers a wide range of pressing issues challenging the digital assets industry. These include the newly urgent subject of regulation, the competing demands of privacy and law enforcement, the difficulty of bringing self-custody to the mainstream, the future of crypto media, and more. The discussion groups, which convened largely offstage in Austin, Texas, from April 26-28, 2023, represented a cross-section of interested parties – including developers, investors, government officials, entrepreneurs, and nonprofits.
This article was written and edited by CoinDesk journalists with the sole purpose of informing the reader with accurate information. If you click on a link from Glassnode, CoinDesk may earn a commission. For more, see our Ethics Policy.
