Indeed, humans invented blockchain. But why should they ruin everything?
This week’s edition of The Protocol Newsletter features a number of people doing things with blockchain, some of it very impressive, and some not so successful. Sales of Taproot Wizards’ first “NFTs-on-Bitcoin” collection “Quantum Cats” were disrupted and ultimately halted, and Wednesday brought news of a reported hack on Ripple. .
Our Sam Kessler writes about the “Private Menpool” that Ethereum users rely on to protect their transactions from being stolen by cutting-edge “MEV” bots, and Margaux Nijkerk writes about the “Council” (referred to as blockchain boards). This project is created to provide adult oversight for networks that are still in development.
PLUS – CoinDesk 20 January leaders and laggards in digital assets.
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it hurts! and solid development and NFT casting With the once-dormant Bitcoin poised to become one of blockchain’s hottest trends, this week’s sale of “Quantum Cats,” a digital art series by Ordinals Inscription Project Taproot Wizards, should be the cat’s meow. Ta. After all, the Taproot Wizards, led by Woody Wertheimer and Eric Wall, raised $7.5 million Comments from investors amidst a wave of excitement about “Bitcoin NFTs.” And earlier this month, the first in the series, “genesis cat“I brought some fur fluff. $254,000 at venerable auction house Sotheby’s. The remaining Quantum Cats were set at a fixed sale price of 0.1 BTC, or approximately $4,300 at current Bitcoin market prices. But when Taproot Wizards’ minting website opened to whitelisted buyers on Monday; More sour milk than catnip. Frustrated applicants filled his Taproot Wizards Discord channel with screenshots showing web glitches and hung transactions. One user wrote: “This has to be one of the worst mint experiences I’ve ever seen.”According to project officials, Taproot Wizards paused the process after about 1,000 of his 3,000 images were sold and postponed the remaining sales until Tuesday, after which Postponed again until Thursday. “We have not lived up to your expectations of us or our expectations of ourselves.” Wertheimer posted on X. No one is talking about purring at the moment.
Blockchain board: “Trust in humans” may become the new watchword for Ethereum’s top layer 2 project.As our Margaux Nykerk reported this week, that principle is at the core of a new trend in the blockchain industry where regulators from various networks are establishing groups of people to lead protocol changes and ensure security. The goal of these “protocol councils,” also known as “security councils,” is to gradually move the nascent network out of the control of its original developers and toward greater decentralization. Automatically or following some kind of democratic process, a panel of well-intentioned humans acts as the ultimate guardian, quickly intervening when emergencies arise or providing final approval of major protocol changes. It is thought that it is possible to do. Ethereum’s Layer 2 network, Polygon, has a 13-person “protocol council.” Arbitrum, another major Ethereum-focused Layer 2, has “.security council,” meanwhile optimism There is also a “Security Council.” “This is a necessary evil,” Mehdi Zerouali, a member of the Polygon Council and director of blockchain security firm Sigma Prime, told CoinDesk.
From the past week’s top picks our protocol village The column focuses on major blockchain technology upgrades and news.
Inside the “Private Menpool” where Ethereum traders hide from front-line bots
Ethereum is full of bots that are programmed to be at the forefront of executing transactions. Bots take advantage of the short time between when a trade is submitted and when it is officially completed to copy and quickly execute other users’ trades, cannibalizing the profits they would otherwise make.
However, Ethereum’s transaction pipeline has been undergoing quiet changes over the past two years as the chain’s users have grown. Employs “private menpool” to execute transactions – Bypasses the blockchain’s “public” transaction lobby to avoid transactions being broadcast to the entire world before they are completed. This prevents his MEV and helps users improve transaction settlement.
While this stealthier mode of using Ethereum has clear advantages, experts say private menpools come with their own risks.
“I think most people, myself included, expect to see more private trading, not less,” Matt Cutler, CEO of MEV firm BlockNative, told CoinDesk. “I think the big question in my mind is: Is more private transactions good or bad for the network?”
Through the first 30 days of January, CoinDesk 20 fell 5.1%, underperforming the stock market benchmark Standard & Poor’s 500 Index.
Luckily for readers of The Protocol, we track the CoinDesk 20 leaders and laggards every month to see who’s doing well and who’s fading among the biggest blockchain projects, at least in the eyes of crypto traders. You can monitor what is happening.
Stocks that fell the most in January included XRP, which fell 18%. Polygon’s MATIC, down 16%. Filecoin FIL is 16% off. The biggest winner was proof-of-work blockchain Ethereum Classic ETC, which rose 14% despite the project being a bit of an afterthought in crypto developer circles. Bitcoin (BTC), by far the largest member of the CD20, with a market capitalization of $854 billion, almost as much as all other blockchains combined, has managed to make a profit and reach 5. It was a monthly surplus. The same goes for Ethereum’s native cryptocurrency, Ether (ETH).