Finance Redefined: Vitalik bearish about cross-chain, decentralizing dYdX, Jan. 7-14
Vitalik Buterin presented his views on a crosschain blockchain world. dYdX announced plans to fully decentralize in 2022. Near Protocol raised $150 for Web3 technology — all of this is in this week’s Finance Redefined.
Cointelegraph’s latest decentralized finance newsletter is here. Despite the market printing bearish numbers twice in a row, the industry still has plenty of positive fundamental news. You can read the latest edition of Cointelegraph’s decentralized finance newsletter to learn about the most important DeFi stories from the past seven days. From https://t.co/3g1GUvuA3A: pic.twitter.com/tEYz8vb59b– vitalik.eth (@VitalikButerin) January 7, 2022 From https://t.co/3g1GUvuA3A: pic.twitter.com/tEYz8vb59b– vitalik.eth (@VitalikButerin) January 7, 2022
Buterin shared a series of examples to support his thesis. He noted that if a malicious entity tried to launch a 51% attack against Ethereum, transactions undertaken by innocent parties could be censored,/or reverted but not lost. However, an incident like this operating on a crosschain bridge between Ethereum or Solana would result in irreversible loss. Let’s say that a 51% attack is made on one of 50 chains. In that case, all of them become vulnerable in what he describes as a “systemic contagion that threatens the economy of that entire ecosystem.”dYdX strives to full decentralization in late 2022dYdX, the layer-two derivatives protocol, published the fourth iteration of its roadmap this week, presenting plans to develop the platform into an open-source, community-centric and fully decentralized operation later this year.The architecture operates on a dual-model in which sections of the protocol, such as staking and governance, are decentralized, while core functions such as the off-chain order book and matching engine are controlled by an in-house subsidiary, dYdX Trading Inc and supported by centralized servers such as Amazon Web Services.”There will no longer be central points of control or failure of the protocol,” representatives from the company stated following the v4 upgrade, assuring that “all aspects of the protocol that can be controlled will be fully controlled by the community.”Last month’s Amazon Web Service (AWS) technical outage highlighted the true vulnerabilities of a number of crypto businesses, including dYdX, Binance.US and Coinbase, and their inherent reliance on centralized servers to maintain the network.At the time, dYdX shared a sincere update on its official Twitter account and pledged to seek an unequivocal solution to this matter, stating:”Unfortunately, there are still some parts of the exchange that rely on centralized services (AWS in this case). We are deeply committed to fully decentralizing, and this remains one of our top priorities as we continue to iterate on the protocol.”Alongside its aspirations for decentralization, dYdX is also pursuing improvements to its interface trading platform, introducing spot, margin and synthetic trading opportunities, as well as appointing an external auditor to appraise business operations.Near Protocol raises $150 million to accelerate Web3 adoptionProof-of-stake blockchain Near Protocol raised $150 million in seed investment this week to enhance the awareness and adoption of Web3 applications within its network, with an inherent focus on expanding its audience and community base to the regions of Latin America, Turkey and India.The capital raise was led by renowned hedge fund Three Arrows Capital and was further participated by Mechanism Capital, Dragonfly Capital and Andreessen Horowitz’s Silicon Valley-based fund a16z. We look forward to leveraging the funding to improve access blockchain technology in an ever-growing list of countries around the world. We look forward to using the funding to improve blockchain technology access in a growing number of countries around the world. Terra (LUNA), rose by 6.32%, while 1inch network (1INCH) saw gains of 2.9%. The expanding Cosmos: Here’s how Osmosis (OSMO), hit a new all time high of $44K. Small-cap altcoins flash positive signals even though Bitcoin is back at $42.5K. Thanks for reading our summary on the most important DeFi developments this week. For more information, insight and education in this rapidly changing space, join us next Friday.
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