Yellow Network ($YELLOW) is a decentralized Layer-3 peer-to-peer mesh network that enables real-time, cross-chain trading by allowing brokers to communicate, trade, and aggregate liquidity without relying on block creation. They have recently launched their testnet and Galxe campaign, which would pave the way to a potential $YELLOW token airdrop! Here is our Yellow Network ($YELLOW) token airdrop guide.
What is Yellow Network ($YELLOW)?
Yellow Network ($YELLOW) is a decentralized system that lets brokers trade and share liquidity across different blockchains in real-time without needing to create new blocks. Here are some of its main features.
Decentralized Trading: Yellow Network enables genuinely decentralized trading by allowing participants to swap assets across different exchanges without relying on block creation.
Layer-3 Mesh Network: It operates as a decentralized Layer-3 peer-to-peer mesh network, facilitating communication, trading, and liquidity aggregation among brokers.
State Channel Technology: Utilizes state channel technology for real-time settlement between brokers, enabling cross-chain trading without the need to bridge assets.
Scalability and Efficiency: Improves blockchain throughput by reducing the computational load on nodes, making it easier to run a node and decentralizing the certification process.
How to get the Yellow Network ($YELLOW) token airdrop?
Here is a step by step guide on how to get the Yellow Network ($YELLOW) token airdrop
Make sure you are on the Ethereum, Linea or Polygon networks, select the amount you wish to lock up and click “Lock”. Note that Season 1 of this campaign is live until 11th November 2024.
Verify task
Go back to Yellow Network’s Galxe page and verify the task.
Complete social tasks
Follow Yellow and Twitter and interact with their posts as per the Galxe tasks. Remember to verify your tasks in order to earn points.
Visit pages
Visit the pages specified on Yellow Network’s Galxe page and verify the task.
Refer friends
Refer your friends to participate in Season 1: The Future.
SunPump ($SUN) is the world’s first platform dedicated to the fair launch and trading of meme coins, offering a user-friendly, low-cost, and secure environment for creators and traders on the TRON network. The SunPump platform is part of SUN.io, Tron’s first decentralized autonomous platform integrating stablecoin and token exchanges whilst supporting liquidity mining. Here is our review on everything you wanted to know about SunPump ($SUN).
What is SunPump?
SunPump is a platform on TRON that facilitates the fair launch and trading of meme coins. It offers creators an accessible, low-cost way to create their own meme coins in a secure and user-friendly environment. Here are SunPump’s main features:
One-click token generation: Users can easily create meme coins by providing a token name, symbol, image, and paying a small fee.
Bonding curve mechanism: SunPump adjusts prices based on token supply, ensuring fairness and transparency.
Instant market access: Newly created tokens are immediately listed, allowing seamless buying and selling.
Liquidity and token burn: When a token’s market cap meets specific criteria, SunPump injects liquidity funds into SunSwap and executes a token burn.
Transparency: All transactions are public, allowing users to monitor activity. Additionally, SunPump has introduced a gas fee reduction program to make participation more accessible.
Fees
SunPump charges its fees at a very competitive rate for both meme coin creators and traders. SunPump fees are as follows:
Trading fee: There is a 1% trading fee on transactions conducted on the SunPump platform.
Creation fee: SunPump charges a creation fee of around 20 $TRX for launching a memecoin on the platform.
Liquidity fee: When a project reaches 100% of the Bonding Curve, the smart contract will automatically add around 100,000 TRX and 200 million tokens to the SunSwap V2 liquidity pool, deducting about 3,000 TRX as a liquidity addition fee.
Deposit/withdrawal fees: SunPump does not charge any additional deposit/withdrawal fees aside from the usual gas fees for blockchain transactions.
What is the SUN.io ($SUN) token?
The SUN.io ($SUN) token is the platform’s native token. As a governance token, $SUN grants holders voting rights to influence the platform’s direction, including decisions on upgrades and protocol updates. The $SUN token can also be locked up to earn veSUN rewards. In turn, holding veSUN entitles to multiple rewards such as TUSD rewards, accelerated liquidity pool mining and voting rights to decide the weights of liquidity pools.
How does SunPump work?
SunPump’s main features for traders are they they provide a secure and verifiable token contract, with no presale and no team allocation. You can trade on SunPump in 5 simple steps as follows:
Explore Meme Coins: Visit the SunPump platform and browse through the available meme coins.
Select a Coin: Choose the meme coin that interests you the most.
Purchase Tokens: Use the Bonding Curve mechanism on the platform to buy tokens.
Trade Tokens: You can sell your tokens at any time to lock in profits or cut losses.
Engage with the Community: Participate in community activities to help increase the market value of your chosen meme coin.
Is SunPump safe?
SunPump launched just 11 days ago on the Tron network, has already generated over $1 million in revenue. While SunPump itself hasn’t been hacked, remember that investing in highly volatile meme tokens carries risks, so users may want to always be cautious.
Conclusion: Pros and Cons of SunPump
SunPump ($SUN) is a world’s first platform on TRON that facilitates the fair launch and trading of meme coins. Here are some of SunPump’s main pros and cons.
Pros
One-Click Token Generation: Creators can easily create meme coins by providing a token name, symbol, image, and paying a small fee.
No token presale: The benefit of no token presale means the token launch is more fair and allows for wider community participation.
No team allocation: This prevents concentration of pair and ensures a fairer ecosystem. In addition, it means team members are motivated to work for the project’s success without a guaranteed allocation and will only be rewarded on the project’s performance.
Bonding Curve Mechanism: SunPump adjusts prices based on token supply, ensuring fairness and transparency.
Instant Market Access: Newly created tokens are immediately listed for seamless buying and selling.
Transparency: All transactions are public, allowing users to monitor activity.
Gas Fee Reduction Program: SunPump introduced the gas fee reduction program to make participation more accessible.
Cons
Inherent Risks: Meme coins can be subject to price manipulation and fraudulent activities such as hacks.
Costs: SunPump charges a creation fee for launching meme coins, and there’s a 1% trading fee on transactions.
Space for Improvement: While successful, SunPump may need ongoing enhancements to address challenges. However, SunPump has only recently launched so it’s expected they will continuously improve on their platform.
Myria nodes are primarily used for gaming based layers, often referred to as Layer 2, which is essentially a scaling solution designed for games. The main function of these nodes is to promote the concept of zero gas fees.
Becoming a node owner enables you to directly generate Myria. Additionally, as a node holder, you will also receive daily Myria rewards, voting rights, and NFTs. The more nodes that are online, the more the rewards slightly drop.
Myria Node Tutorial
https://youtube.com/live/_jJFrtaUAbk
Acquire Myria tokens which can be converted to U.S. dollars or USDT. Tokens can be purchased and sold on both centralized and decentralized exchanges, such as Bybit or Uniswap.
Calculate the expected return and the break-even point. A rough calculation can be obtained by multiplying daily rewards by 28 (days of a month). The quantity may decrease as more nodes join. This data provides a general estimate, and the price of Myria could change over time.
Running a node is a technical task that will require some learning. Two strategies include running it on an old PC or with DigitalOcean.
Connect your wallet to the Myriad node. Once connected and signed in, transfer your Myria tokens, taking note of the specific value and associated transaction fee.
Myriad is a gaming-specific blockchain, often referred to as Layer 2. Myriad Node acts like a highway, allowing faster transactions and reduced costs by limiting the amount of information it reports back to Ethereum.
Proceed with the purchase of the Myriad Node using the Myriad tokens deposited.
Download the Myriad node client suitable for your operating system (Windows/Mac/Linux). Run the install process until it’s completed.
Enter your Myriad Node API Key into the installed Myriad Node client. You can locate your Node API Key within your Myriad account.
Key Updates for Myria
Metarush reached a new milestone with the first-ever closed demo in February 20231.
The Myria lore received new chapters in March 20231.
The Myria Whitepaper was released in March, providing detailed information about the ecosystem, tokenomics, and various features1.
The MYRIA token went live in early April, launching first on the OKX exchange and then on KuCoin, Gate, MEXC, Bitmart, and Uniswap1.
The founders, Andrew and Brendan, discussed the biggest crypto highlights of 2023
Phemex is a professional-grade Cryptocurrency exchange offering both Bitcoin spot and options trading. The exchange offers an innovative zero-fee trading model where fees are not charged per transaction. Phemex also offers Bitcoin, Ethereum, and Chainlink Perpetual futures. The exchange is built by ex-Morgan Stanley executives, aiming at providing institutional-grade trading tools and security. Derivatives trading allows traders to increase their exposure to certain assets and the ability to “short”.
Key Features of Phemex
Free trades on Spot Exchange (Premium account)
Institutional grade trading and security
Robust trading insurance
Free deposit fees
Ability to Leverage up to 100X margin
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Phemex Spot Exchange & Free trades
One of the key advantages of Phemex exchange is the ability to have free zero fee trades. This concept is groundbreaking for the cryptocurrency exchange industry because the previous model charged trading fees for both buying and selling crypto. These fees would add up over time, with many traders paying thousands of dollars to cryptocurrency exchanges. With Phemex, these traders can take advantage of the zero fee trading model and only pay a monthly premium of $9.99 USD per month. This is a huge game changer for cryptocurrency daytraders and technical analysts.
Phemex is also offering a US$6,050 sign up bonus, as well as 2 BTC and 10,000 USDT in trial funds! Sign up here.
I think that this is a trend and responsibility of exchange is to reduce fees for small capital users And, for the institutional clients, they willing to pay more fees, but to have a better service, like data-wise, analysis wise, right? So that’s two different groups. So we, and we announced our zero fee permission, they just to benefit our retail customers.
Jack Tao, CEO of Phemex
Bitcoin Perpetual Futures
The core trading product offered by Phemex is cryptocurrency derivatives trading such as Bitcoin Perpetual Futures. Derivatives are financial tools that derive value from the underlying product – in this case cryptocurrencies such as Bitcoin. Phemexexchange trades contracts based on the underlying asset instead of the asset themselves – this allows higher leverage and more types of products. Phemexallows up to a 101X max leverage on derivative products. This means a 1% change in the price of Bitcoin could result in 100% change in the funding amount – potentially allowing traders to double or nothing on the exchange. This type of leverage is popularized by the BitMEX exchange which also allows 100X leverage.
Supported Countries
Phemex exchange does not offer its services to the following countries: US, UK, Canada, Cuba, Crimea, Sevastopol, Iraq, Yemen, Iran, Syria, North Korea, South Korea, Sudan, China, Hong Kong, Republic of Seychelles, and Bermuda.
Supported Cryptocurrencies
Phemex only 6 cryptocurrencies for the time being: Bitcoin, Ethereum, Ripple, ChainLink, Tezos, Litecoin. Though for contracts, Phemex also does offer a GOLD/USD trading pair.
Phemex Trading take profit orders and stop-losses
One of the key advantages of Phemex is use of stop-loss and take profit orders. These orders allow professional traders to fine-tune their trading strategies and set up opportunities to take profit or stop-loss. By default, Phemex has quick options to take profit at 25%, 50%, 75% and 100% profit. These can be set when the initial position is established with a clear indication the mark price and estimated profit or loss. It’s important to remember that when take profit or stop losses are triggered, the position will be sold as a market order – meaning that the algorithm will automatically match a trade even if it’s not at the same price.
Phemex Fees
Trading Fees
The standard contract trading fees on Phemex is set at 0.01% for makers and 0.05% for takers. Whilst standard spot trading fees are 0.1% for makers and 0.1% for takers. Phemex offers trading fee discounts for VIP users i.e. those with high trading volume on their Exchange. Users can also enjoy trading fee discounts by staking Phemex’s native $PT token in return for $vePT, enough $vePT tokens.
There is no addition transaction fee for the exchange, so users can trade even small quantities without fear of having overwhelming fees. Taker fees are higher as the exchange promotes users to fill the order books and establish higher liquidity for the exchange.
Funding fee is feature that is extremely important to take into consideration on Phemex. Funding rate is paid directly to holders of either long or short positions depending if its “negative funding” or “positive funding” rate. On Phemex, the fee is charged every 8 hours and can be negative or positive – meaning it’s possible to gain or lose money every 8 hours. If funding rate is negative, shorts holders will pay longs a percentage of their position. In the example above, the funding rate is -0.0094%, so short holders will be charged 0.0094% of their entire position. This also means that long holders will gain interest on their position.
Click HERE to learn more about crypto funding rates and how to earn passive income from them.
Deposit/Wtihdrawal fees
Phemex does not charge a deposit fee, but there are minimum deposit requirements. As for withdrawals, there is also a minimum withdrawal limit and the fee charged depends on the cryptocurrency. For example, Phemex charges 0.0005 BTC for BTC withdrawals, and 1 USDT for USDT withdrawals.
Phemex has a utility token known as Phemex Token ($PT). $PT gives holders various benefits including staking yields, trading fee discounts, VIP privileges, cashback airdrops, DAO governance, as well as launchpad and launchpool access. Phemex Token cab be purchased on the Exchange, and it can be staked to obtain Vote Escrow PT ($vePT). $vePT grants exclusive voting rights in the PhemexDAO, staking yields and buy crypto airdrops privilege.
Payment methods
Phemex only accepts the following cryptocurrency deposits onto the Exchange: Bitcoin, Ethereum, ChainLink, Tether and Ripple. Due to the Exchange not having any KYC procedures in place, traditional payment methods such as credit or debit cards and PayPal are not accepted.
Sub-accounts feature
Phemex offers an easy method to create sub-accounts – each with their own individual account balances and permissions. This feature allows traders to isolate their different trading strategies from each other – as it is possible to set a limited balance to each sub-account. Balance can be transferred freely between the accounts via the sub-account system. Traders can create new accounts for each new strategy they want to test out. In addition, sub-accounts can be used for trading bots – so automated trading can be done within controlled limits.
Is Phemex Exchange Safe?
Phemex has never been the subject of a significant hack. They also have the following practices to keep user funds safe:
Cold wallets: Phemex assigns separate cold wallet deposit addresses to each user and keeps 100% of user funds in reserve. It also uses offline signature and Merkle-tree Proof-of-Reserves so users can see where their funds are in Phemex’s system.
Risk controls: Phemex uses a two-factor authentication mechanism, an anti-phishing code, and a double-entry bookkeeping system to protect user accounts from tampering and malicious actions.
Firewall and network management: Phemex deploys its system on the AWS Cloud and uses several firewalls to separate different zones and machines for different trading purposes. It also applies restrictions on system and instance accessibility.
Trading platform:Phemex uses C++ engines that are fast, reliable, and customized to provide high performance and seamless disaster recovery for 24×7 trading.
Phemex Team
The core of Phemex team is comprised of ex-Morgan Stanley executives and developers. CEO Jack Tao has worked at Morgan Stanley for 11 years with experience developing Equity trading algorithms in the US. This work is pivotal to Phemex’s long term growth strategy and mission to bring professional trading tools to the cryptocurrency space.
Conclusion: Phemex Exchange Pros and Cons
Pros
Developed by ex-Morgan Stanley Executives
Industry trend-setting Zero Fee Trading
Sub Accounts and easy to use APIs
Top tier exchange and wallet security
No KYC for small withdraws
Cons
Relatively new.
Regional restrictions without providing alternatives for users from those jurisdictions.
Phemex is currently looking for regulation via the Monetary Authority of Singapore (MAS) and SEBA for custody of customer assets. Similar to other derivatives exchanges such as BitMEX, PheMEX is currently not regulated.
Is Phemex allowed in the US?
Phemex does not offer services to the following countries: US, UK, Canada, Cuba, Crimea, Sevastopol, Iraq, Yemen, Iran, Syria, North Korea, South Korea, Sudan, China, Hong Kong, Republic of Seychelles, and Bermuda
Does Phemex have a token?
Phemex has a token known as Phemex Token or $PT. It is a utility token that provides benefits such as staking yields, fee discounts, and Phemex DAO governance.
What is the difference between PT and vePT
PT is Phemex Token, the native token of Phemex Exchange. Users stake PT in order to get vePT (vote escrow PT).
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
ZigZag Exchange will do a total of 7 airdrops totaling around 35 million $ZZ (35% of total supply). They recently finished their first airdrop round for market makers. This means that everyday users of the protocol are up next! The second airdrop criteria have been announced! So we compiled the latest guide to help you position for the $ZZ airdrop.
Here’s how users were eligible for the second round of ZigZag Exchange ($ZZ) token airdrops. There is speculation that the third round of airdrops may have similar eligibility:
ZigZag Exchange is a decentralized order book exchange powered by zkSync and Arbitrum. It provides users with a familiar trading experience similar to that of a centralized exchange (CEX), except they have full control of their funds. Users can trade directly from their wallets on ZigZag with low fees. This is possible because the platform’s market makers extract price feeds from centralized exchanges (CEXs) and relay them to the order books on ZigZag. As a result, the price quotas on ZigZag are the same as CEXs, allowing users to trade at competitive prices.
Who is the Team behind ZigZag Exchange?
An open community of coders, designers, mathematicians, cryptograph experts, high-frequency traders, researchers, market makers and other contributors, developed ZigZag Exchange. Their code is public on GitHub, and smart contracts are regularly audited by the community.
Does ZigZag Exchange have a Token?
ZigZag Exchange has its $ZZ token. $ZZ can be purchased on their own platform and Uniswap. The total supply of $ZZ tokens is 100 million, of which 60.7% will be allocated to the community. This community allocation is further divided into three categories: ecosystem (DAO, marketing, incentives, liquidity), community contributors, and airdrops.
The ZigZag token is a governance token and will also share the revenue from fees that are generated on the ZK-Rollups.
How to be Eligible for Round 2 $ZZ Airdrop?
Round 2 of the ZigZag $ZZ token airdrop has just been completed! It was a record breaking airdrop with over 100,000 users receiving an airdrop of 34% of the total $ZZ token supply. There were seven subcategories of users who were eligible for the $ZZ token airdrop:
Trader airdrop ✅ (open)
Market maker bots airdrop ❌ (closed)
IDO participant airdrop ❌ (closed)
Atlendis liquidity provider airdrop ✅ (open)
Discord member airdrop ✅ (open)
Gitcoin donator airdrop ✅ (open)
POAP holder ✅ (open)
The following categories were eligible for airdrops in season 2: Traders, Atlendis liquidity providers, Discord members, Gitcoin donors, and POAP holders. Follow these steps to be eligible for the upcoming $ZZ airdrop:
Trade on ZigZag Exchange for Trader Airdrops
Although ZigZag stated that trades between 5th November 2021 and 31st December 2022 are the base criteria, there is no list with eligible addresses yet. So it is worth a shot to make frequent trades now on the platform if you haven’t yet. Go to trade.zigzag.exchange and connect your MetaMask or Argent Wallet. If you don’t have funds, you can use their bridge to transfer assets.
A total of 92,000 addresses qualified for this airdrop. There are 3 categories of those who will receive trader airdrops based on a snapshot taken on 31st December 2022: Base Criteria, November 2021 traders, and December 2021 traders. Those who (1) had 1-month activity (first and last swap 30 or more days apart); and (2) 4 unique days with swaps qualify for Base Criteria and would receive 300 $ZZ. Those who reached Base Criteria and made their first swap before December 2021 qualify as a November 2021 trader and will get a 300 $ZZ early adoptor bonus. Users that reached Base Criteria and made their first swap before 1 January 2022 qualify as a December 2021 trader and will receive a 100 $ZZ bonus. In short, the eligibility criteria for ZigZag Exchange Trader Airdrop are:
300 $ZZ for only reaching Base Criteria.
400 $ZZ total for December 2021 trader.
600 $ZZ total for November 2021 trader.
Obtain Discord Roles for Discord member airdrop
ZigZag will airdrop $ZZ to three Discord roles: (1) Member, (2) Senior Member, and (3) OG. As they are still working out the details, there is still time to get to “Member” at least. You will need to actively engage with the community, help other users, give feedback to the team, find bugs on GitHub, create content or write Twitter/Medium posts.
253 addresses qualified for the Discord member airdrop. The amount of $ZZ airdrops depends on your Discord member role. 1,000 $ZZ to Og, 750 $ZZ to Senior, 500 $ZZ to Member.
Donate on Gitcoin for Gitcoin Donor Airdrop
Go to their Gitcoin and donate to their grant’s address 0x9B67d3067fA606BE28E56C1aB184725c07b7B221 on zkSync, Polygon, and Ethereum.
7,600 addresses qualified for ZigZag’s Gitcoin Donor airdrop. Gitcoin donors will receive 2 $ZZ for every USD donated (minimum US$3 donation).
Atlendis liquidity provider airdrop
2,100 addresses qualified for the Atlendis liquidity provider airdrop. Atlendis liquidity provider will receive 500 $ZZ per depositor (minimum US$5).
POAP holder airdrop
In February 2022 ZigZag launched a Lantern Festival Trivia event for its Chinese users. POAP holders will receive 300 $ZZ per POAP.
How do I claim my ZigZag Exchange ($ZZ) airdrop?
The airdrops have been distributed. $ZZ tokens will automatically be airdropped on zkSync Lite. You can check how many $ZZ tokens were airdropped to you by viewing your zkSync wallet at https://zkscan.io/. Check frequently as the tokens were airdropped by the team over multiple rounds. (Tramadol online)
ZigZag Exchange will definitely do a third round of airdrops. This is because they have confirmed in their Documentation they will do a total of 7 airdrops. Whilst ZigZag has not announced details of when they will do their third $ZZ airdrop yet, we it will be after the second round of airdrops in March 2023.
ZigZag has just announced their Zap bridge supports zkSync Era. Go onto ZigZag Bridge, bridge assets to and from zkSync Era to position yourself for a potential ZigZag (and zkSync) airdrop!
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: ZigZag Exchange confirmed they will do a total of 7 airdrops.
Airdropped Token Allocation: Around 35 million $ZZ will be distributed over 7 airdrops (35% of its total token supply)
Airdrop Difficulty: For the second round of airdrops, there were 7 eligibility criteria. For example, trading on their platform, donating on their Gitcoin or obtaining a Discord “Member” role. This makes the ZigZag airdrop relatively easy.
Token Utility: $ZZ is a governance token built on the ERC-20 standard that enables token holders to participate in the decision-making process for ZigZag Exchange’s multi-chain ecosystem. The ZigZag token will also share the revenue from fees that are generated on the ZK-Rollups.
Token Lockup: $ZZ tokens will be directly distributed in the airdrops without any vesting.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
Trezor Model T is a second generation cryptocurrency hardware wallet manufactured by Satoshi Labs. The Bitcoin and Altcoin wallets operate using a new firmware called the TREZOR Core, allowing faster development of new features.
BUY YOUR TREZOR MODEL T NOW!
Trezor Model T
In this review, we will be looking at the features of the hardware wallet, the cryptocurrencies it support, and if it is worth buying or not.
If you want to learn how to set-up and install your Trezor Model T, check out our complete Setup Guide here.
Or check out my video review below.
Key Features of the Trezor Model T
Screen: Bright color LCD – 240×240 pixels;
Connectivity: USB-C connector for connecting to the computer or mobile phone;
Mobile support: Android support via the Trezor Manager; and
External wallet compatibility: supports MyEtherWallet and a few others.
Inside the box
Security Features
Passwords on the device are individually locked with the Trezor Password Manager using a user’s digital keys. The device can also function as a U2F hardware token, which allows Trezor to utilize the screen and inform a user about any authentication request before they approve it.
Trezor created the standard recovery seeds (BIP32/39/44), which enables users to recover their entire wallet easily with the help of their 12-word recovery seed.
Similar to the Trezor One, the Model T has a passphrase feature so users can generate a new wallet. To access passphrase protected wallets, users will be required to enter your passphrase in addition to your security PIN.
So say a thief demands you to give them access to your device. You can give them your PIN code to access a wallet with fewer funds. Meanwhile the bulk of your crypto assets are stored safely behind passphrase protected wallets.
Can the Trezor be hacked?
Kraken Security Labs announced they devised a new way to hack into Trezor devices within 15 minutes of physically having the device. They did this through voltage glitching using a device and cracking the PIN code using a custom Python script, which will reveal the recovery seed. According to Kraken Security Labs, the attack makes use of inherent flaws within the Trezor’s microcontroller. So it will be difficult for Trezor to fix this vulnerability without redesigning the hardware and putting out a new device.
In reply, Trezor noted that the attack cannot work remotely and if users turn on the passphrase feature on the device. Trezor also reassured users that physical access is only a threat to 6-9% of cryptocurrency users.
Trezor Model T 2.3.0 firmware update- does it fix the Kraken Security Labs hack?
In mid-April 2020 the Trezor Model T announced their latest firmware update to ver. 2.3.0 which features some updates on their security measures. Before we answer whether it can resolve the 15-minute hack devised by Kraken Security Labs earlier this year (see above section), let’s take a look at what these features are.
The new updates include 2 passphrase updates which firstly, allow temporary passphrase caching so you can switch between your various passphrase protected wallets when using the device. The passphrase cache is only temporary, so once you disconnect the device, nothing is saved. Secondly, users will now be asked to choose how to enter their passphrase on the device itself, rather than on your computer or phone.
A notable new features is the wipe code which acts as a “self-destruct PIN”. When entered either on the device itself or your computer or phone, the wipe code erases all private data from your Trezor and resets the device to the factory defaults. Trezor suggests users can write the wipe code somewhere near your device as a decoy PIN, so if a thief tries to unlock your device, they will make the Trezor erase itself.
The SD card protection feature is intended to serve as an additional protection against physical attacks on the Trezor Model T. When this feature is enabled, a randomly generated “secret” is stored onto the microSD that is inserted into your Trezor. This “secret” carries no information on your Trezor’s seed or passphrase and is a completely random value. With the feature, you would need to insert the SD card into the Trezor so as to combine the “secret” with the PIN and decrypt the data stored on the Trezor. Hence you will require both the SD card and the Trezor to unlock it and access your cryptocurrencies. So you can enable this feature and keep the SD card and your Trezor in separate locations if you are worried about physical attacks.
From our research, Trezor has not directly responded whether their latest security firmware update fixes the hack devised by Kraken Security Labs. As mentioned previously, the vulnerability identified by Kraken cannot be resolved unless the hardware is redesigned. So the latest firmware updates can only indirectly give hackers have a harder time accessing your device but not resolve the core vulnerability. The fact that it only took Kraken 15 minutes of physical access to the device to hack it, and their suggestion that the glitching tool could be mass produced for sale at around USD$75 continues to be extremely worrying. For this reason, whilst we appreciate Satoshi Lab’s efforts to continue improving the device we cannot reinstate the security score given to the Trezor prior to the Kraken hack being discovered.
Security 3/5
Multi-Currency Support
Trezor Model T is designed to handle over a thousand cryptocurrencies including popular ones like Bitcoin, Ethereum, Litecoin, Dash, Bitcoin Cash, Bitcoin Gold, and more. Regular updates enhances features and allows for even more supported cryptocurrencies. One advantage of the Trezor over other wallets is that all currencies are accessible without the need to “install” individual applications – this simplifies the overall use of the device
Currently, the Trezor is supported by decentralized exchanges such as Binance DEX, IDEX or Switcheo exchanges.
Multi-currency support 3/5
3rd Party Wallet Support
3rd party wallets like Exodus Wallet and others (MetaMask, etc.) offer Trezor support and allow for access to the hardware wallet inside of Exodus. This means users will be able to choose between different wallet interfaces and enjoy unique features offered only by Exodus, such as direct exchange of currencies.
Hardware Design
The device is relatively compact at 2.52in x 1.54in x 0.39in (64mm x 39mm x 10mm) and weighs 0.77 oz (22 grams).
It also has an LCD size of 240 x 240 pixels.
With the LCD screen, users can edit and configure the wallet according to their taste.
The sleek design makes it an upgrade to the previous Model One. Instead of buttons, the device has a touch screen available for ease of use.
However, I find the touch screen is still small and can be hard to use. I eventually settled on pressing the screen with my pinky finger.
Thumb for scale
The device works with a broad range of operating systems. Thus, users won’t have the problem of connecting it with Windows, Linux, MacOS. They also have Chrome extensions available for those who wish to use it. The user interface gives users the option to change the language and view transactions via the touch screen.
Hardware design 5/5
Ease of use 4/5
Mobility
The device supports Android mobile and laptop devices. There is currently no support for iOS.
Users will need to download the Trezor Manager from the Google Play Store, which enables them to manage the wallet from their mobile phones. The mobile app can be used in sending cryptocurrencies, generating addresses, and viewing the details of a user account.
It also supports integration with Bitstamp and Bitex exchanges. So users can sign in and send cryptocurrencies to these exchanges directly using the Trezor device.
Is Trezor Model T worth it in 2023?
At the official price of US$219 (NOW ONLY $186 UNTIL 21 MAY!), it is an excellent cryptocurrency hardware wallet.
However, some people may consider the price too high despite its functions and high-security level. It is quite an investment if you are new to cryptocurrencies or only trade cryptocurrencies casually.
The touch screen, its support of over a thousand cryptocurrencies, and its high-security features are some of the reasons that could convince people to purchase this crypto hardware wallet.
Verdict
Trezor Model T
Deciding whether or not to purchase the Trezor Model T over other available cryptocurrency hardware wallets has a lot to do with what features you are looking for.
The wallet supports over a thousand cryptocurrencies. Thus, virtually half of the cryptos available in the market can be stored on the device.
Its integration with exchanges such as Bitstamp, Coinmap, and Bitex also makes it a good choice.
However, one significant downside is that the device does not support IDEX or Switcheo exchanges. The latest findings from Kraken Security Labs on physical hacks on the device are also extremely concerning.
Ledger released a new hardware wallet – the Ledger Nano X. This new device protects your cryptocurrencies with military-grade protection and prevents digital theft and hackers. These are the key new features of the Ledger Nano X:
Large HD screen – Displays address of receiver in full without scrolling
More storage space – Install up to 100 different apps for different coins.
Rechargable Battery – allows the device to be powered-on without a cable.
Ledger Recover – A new (albeit controversial) seed phrase recovery subscription service. Learn more here.
Click below to buy!
This guide will help you setup your Ledger Nano X and teach you the important features. In addition, we the most important question: Is Bluetooth Safe?
Cryptocurrency can be spent on the go with Ledger Nano X
One of the biggest features of the Ledger Nano X is the support for mobile phones (both Android and iPhone). The new Ledger Live app allows for both sending and receiving of all supported cryptocurrencies on the go.
The app connects directly to the Nano X via Bluetooth, so no cable is required. The device has a battery that allows it to be actively powered on for more than 8 hours (depending on use), so the Nano X can be brought out to send cryptocurrency on the go.
Portfolio mode allowsLedger Liveto display all available balances that is stored on the Ledger Nano X. This is accessible even if the hardware wallet is not present, so you can conveniently browse the portfolio. To send cryptocurrencies, the device must be present to sign the transaction via Bluetooth. It is important to remember that the private key to sign transactions never leaves the device or is transmitted via Bluetooth – only the signed transaction which cannot be altered (secure).
Ledger Mobile app showing the Ethereum address with verification from Ledger Nano X
Ledger Live Mobile also supports the installation of various apps for different cryptocurrencies via Ledger Manager, just like the desktop version. The mobile app boasts the same functionality as the desktop version with the notable exception that it does not yet allow firmware updates.
How to Add or Remove Apps on the Ledger Nano X
To use different cryptocurrencies on the Ledger Nano X, the app for that coin needs to be installed on the Ledger first. This is done via the Ledger Live app on either Windows, MacOS, Linux, Android or iOS. First install Ledger Live, connect the Nano X and enter the “Manager” interface. The app will require you to unlock the Ledger by entering your pin and entering the home screen. You will need to authorize Ledger Live by confirming “Allow Ledger Manager”. Once you are connected, you will see a list of different apps that are ready to be installed (if your list is shorter than in the following image, update the firmware of the Ledger Nano X).
Is Bluetooth Safe?
The simple answer is: Yes. One of the initial concerns (reddit) about the Ledger Nano X is communication via Bluetooth, a form of radio communication. The previous model (Ledger Nano S) only had cable connectivity, which would not expose the device to nearby attackers. Bluetooth is safe to use in this case because the device is never controlled via Bluetooth – instead it is only used to send unsigned and signed transactions. This means the private key (the key to all the funds) is not exposed and does not leave the device.
The Nano X operates with the assumption that the Bluetooth connection (which is a bearer, exactly like USB) is compromised. The addition of BLE doesn’t impact the security model. Transactions must always be physically verified on device by pressing both buttons. Moreover, on the Nano X screens and buttons are directly connected to the Secure Element (single chip architecture), which is also an enhancement of the general security design. (Valium)
On top of this, the Ledger Nano X functions assuming the Bluetooth is in “compromised” mode. This means it will never give any control to other external devices and communication is limited to transaction signing only.
Control Panel on Ledger Nano X allow Bluetooth to be turned On / Off
Keep your Recovery Phrase Safe!
There will be a sheet where you can write down your 24-word recovery phrase. This is the most important part because it acts as a backup to the device. You will need to keep it very safe because if someone gets access to that paper it is essentially the same as stealing your wallet.
Do not take a photo or have a digital copy of that list!
Write down your 24-word recovery phrase. The order of the words is also important.
After setting up the device, with it still plugged in, visit the Ledger Live website and download the app you want to use.
Follow the instructions on the site and use.
Note: after setting it up you will be navigating the device on your computer.
You can receive cryptocurrency even when the device is offline. It’s only when you want to send that you need to connect the device and enter your PIN and login.
After inputting all the transaction details on your computer, as an additional security measure, you can double check the details on the device. Make sure the address and amount are correct and confirm.
Why use a Hardware Wallet?
With traditional currencies, you, the user, are the most important person. If you have ever lost your bank card, you can always go to the bank with some sort of identification and request for access back to your account.
Cryptocurrencies, however, don’t care about the physical person but rather the private key associated with the wallet. The private key is used to verify the account and transactions. Anyone who has access to this key can send funds and that is why you must keep it safe. Another thing is that cryptocurrency transactions cannot be reversed.
Hardware wallets can protect you against these things. They add an extra layer of security by storing the private key on the device itself. The only way to hack it would be to have physical access to the hardware wallet or with the backup phrase.
Paper wallets offer arguably even more security. However, the process for setting them up and using it is very complicated. Hardware wallets strike a nice balance between security and convenience.
Is the Ledger Nano X Worth the Upgrade?
At a higher price point, many users are asking the question “Is the Ledger Nano X worth the Upgrade“. For us, the answer is depends.
If you use more than 3 apps, then consider upgrading. Coming with a much larger memory space, Nano X is able to store a lot more applications than the soon-to-be-retired Ledger Nano S. However, its updated model, the Nano S Plus, at a price of USD 79, is capable of storing up to 100 apps, making it much more competitive with the pricier Nano X. As of writing, the Ledger Nano S is only able to store 2-3 applications with Firmware 1.5.5 (such as Bitcoin and Ethereum app). Whilst you can get around this limitation by uninstalling unused apps, the constant switching often leads to confusion and time wasting.
If you need to send large amounts of Cryptocurrencies on the go. With Bluetooth support, the new Ledger can be used with Android phones and iPhones.
If more apps and mobility are not a big concern for you, stick with the Ledger Nano S or Nano S Plus.
Successfully set up your Ledger Nano X? Now it’s time to get started with trading Bitcoin and other cryptocurrencies! Check out my course created in collaboration with Jeff Kirdeikis of Uptrennd- Bitcademy: Learn, Invest & Trade Bitcoin – In Under an Hour
Ledger Nano X is the next generation of Hardware wallet with smartphone support, a larger screen and more storage space for Apps. Retailing for $119, the Ledger Nano X is great for newcomers or experienced traders trading more than 3 types of cryptocurrencies at at time or large volumes on the go. If more apps and mobility isn’t a big concern, stick with the Ledger Nano S.
In this review, we’ll be looking at the security, hardware design and cryptocurrency support of the Ledger Nano X to tell you if this device is worth purchasing or not. For Set-up and installation guides, check out our full Ledger Nano X guide.
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Key Features of the Ledger Nano X:
Ledger Nano X Video Review
Larger screen – Displays full cryptocurrency addresses without scrolling
More storage space – Install up to 100 different apps for different coins.
Rechargeable Battery – allows the device to be powered-on without a cable.
Ledger Recover – A new (albeit controversial) seed phrase recovery subscription service. Learn more here.
Latest features: stake, swap, earn and lend cryptocurrencies
Staking and earning
Ledger Live allows for staking Tezos ($XTZ), Tron ($TRX), Cosmos ($ATOM) and Algorand ($ALGO). Users can lock up these cryptocurrencies to secure their respective networks and in return they will be paid interest for doing so. This feature expands Ledger into more than just a secure place to store your cryptocurrency, it can even help you grow your digital assets.
Staking your digital assets can be done in 3 simple steps. First, freeze your assets by logging onto your Ledger Live, choosing the relevant account for the asset you wish to stake and click “earn rewards”. A popup window will then appear. There you will be allowed to select the amount in your wallet you wish to freeze. Secondly, vote for your validator(s) who will be making the blocks on your network and the cryptocurrency earned by making these blocks will be redistributed to voters. Lastly, claim your rewards by clicking “Claim” in your relevant account. Rewards are claimable every 24 hours.
Swapping
Ledger has released a Ledger Swap feature which allows users to exchange their cryptocurrencies through their partner Changelly. How this works is you send your cryptocurrency from your device to Changelly, and Changelly sends you back the swapped cryptocurrencies.
To use this feature you will need: Ledger device, Ledger Live, the app for the crypto you want to swap and receive, and finally the exchange app.
Lending
Ledger is working with Compound ($COMP) to allow users to lend DAI, USDT and USDC through Compound’s decentralised finance (DeFi) protocol. The purpose of doing is is that the lender could earn an Annual Percentage Rate.
Further, there are numerous benefits when using Ledger to lend:
Control: You have control and proof that the crypto you lend and generated interest belong to you. This is because lending on Ledger is done through Compound, and when you lend on the platform you get “cTokens” in return. These cTokens represent proof of your ownership of the cryptocurrencies lent and the interest generated. These cTokens are stored by you until you want your lent assets and interest back, and in which case all you need to do is to send the cTokens back to the smart contract.
Security: cTokens are stored on your ledger hardware wallets.
Convenience: Compound’s lending features are available directly through Ledger Live.
Lending crypto using Compound and Ledger Live is done in 3 simple steps. Firstly, on Ledger Live’s Manager, install the application for the cryptocurrency you want to lend and create an account. Secondly, enable your account to authorise Compound’s smart contract to interact with your account. Finally, select the amount of cryptocurrencies you want to lend and issue a transaction to Compound, verify and approve the transaction on your device.
Security features
One of the key reasons to buy Ledger hardware wallets is the firm’s reputation for security. The Nano X contains a two processor chips:
Secure Element: ST33J2M0 (secure) is independently certified and stores the private key and signs transactions
Operating system: STM32WB55 chip is responsible for Ledger’s BOLOS proprietary Operating System.
Secure elements are separate pieces of hardware (second layer of security) with their own storage and limited functionality that cannot be breached by hackers. This means that even if the Ledger Nano X is connected to a compromise device – like a hacked laptop or phone, the private keys (=access to crypto funds) is never compromised. Devices like the Trezor One and Model Tdo not have secure elements and only have a single layer of security.
Ledger Nano X Teardown showing CC EAL 5+ Secure Element Chip
The Ledger Nano X also has the same BOLOS operating system that is found on the Nano S. BOLOS ensures that addresses are displayed properly on the device and handles connections to external devices.
Similar to the Nano S, users can set up wallets protected by a passphrase in addition to your primary PIN code. So say a thief demands you to unlock your device, you can give them the PIN code to access wallets with fewer funds. Whilst hiding the bulk of your crypto assets behind passphrase protected wallets.
The Nano X has the addition of Bluetooth support. Unfortunately Bluetooth’s security record is not spotless, and presents a new vector of attack for the device. Ledger CTO Nicolas Bacca has stated during an interview that Bluetooth on Ledger functions assuming the connection has been compromised – at no point will it be able to take over the device.
Bluetooth can be turned off on the Ledger Nano X
In October 2019, the Nano X received CSPN (First Level Security Certificate) certification issued by the ANSSI (National Agency for Information Systems Security). Currently, of all the cryptocurrency hardware wallets on the market, only Ledger’s Nano S and Nano X have this certification. The certification scheme evaluates multiple aspects of a device’s security including firewall, identification, authentication and embedded software by putting it through multiple attack scenarios.
Ledger hack
In July 2020, Ledger confirmed they suffered a data breach whereby an unauthorised third party accessed Ledger’s e-commerce and marketing database. As a result, around 1mil email addresses were exposed, and of those, 9,500 customers’ had further information exposed such as their first and last names, postal address, phone number and ordered products.
Ledger had reported the matter to authorities and are working with Orange Cyberdefense to investigate the matter. The team are also constantly monitoring for evidence of the data being sold on the internet.
Subsequent to the data breach, users have been reporting receiving phishing emails and texts by asking them to download a new version of the Ledger software. If users click on the link in the email, they will be redirected to a fake cloned version of the Ledger site. Afterwards, if users download the “update”, which is in fact a malware, it would ask users for their Ledger’s recovery phrase. The entered recovery phrase is then used by the attacker to recover the user’s wallet and send the user’s cryptocurrencies to the attacker’s wallet. For a full explainer on how the phishing attack works see the report from Kraken.
Phishing email sent from info@ledgersupport.io address
We do note that this can be more accurately characterised as a “data breach” rather than a hack. More importantly, this breach had no link or impact on the Ledger hardware wallets or the Ledger Live app. Cryptocurrencies stored on the Ledger devices have never been at risk.
Ledger has one of the most diverse support for different cryptocurrencies such as NEO, Vechain and Monero. With their open policy to development from project teams, the Ledger nano X supports 1100+ different assets. Many of these assets like Vechain or NEO are not found on competitors like the Trezor Model T or KeepKey, making Ledger the only hardware wallet available for many coins. The rule of thumb here is that the Nano X will support the same assets as the Ledger Nano S.
Installing Ledger Live
Ledger has a native application called Ledger Live to allow you to access cryptocurrency accounts (including Bitcoin, Litecoin Ethereum and other cryptocurrencies). Ledger Live is available on multiple platforms including Windows, MacOS, Linux, Android and iOS. We found the Ledger Live app easy to use as it clearly displays cryptocurrency assets with historical charts. Sending cryptocurrencies is extremely easy with step-by-step operation which clearly displays the sender and receiver addresses. There are also advanced features to manually customise the transaction fee in sat/byte.
How many coins can Ledger Nano X Hold?
One of the weakness of the Nano S is the lack of space for installed applications. The Ledger Nano X fixes this problem by increasing the internal memory to 2 MB. In our tests we were able to install all 73 available apps on the device (Ledger claims up to 100+). It should be noted that app storage is a convenience feature – apps will still retain their accounts / cryptocurrency balances even if uninstalled.
Does Ledger Nano X support Ethereum and ERC-20?
In September 2019 Ledger added a native Ethereum Wallet to its latest Ledger Live v.1.14.0 which adds support for 22 coins and over 1,250 ERC-20 tokens. This allows for direct access to tokens and ethereum whilst on the go without the need for a 3rd-party interface like MyEtherWallet. This is a welcomed upgrade to Nano X users who previously had to use different interfaces depending on the cryptocurrency you wanted to interact with. It will also certainly be welcome to newcomers to cryptocurrency, who may be confused by the different interfaces.
One of our complaints is that Ledger Nano X has to enter each app separately account – something that is not necessary on the Trezor Model T.
Is Ledger ready for Ethereum 2.0?
Ethereum 2.0 is coming soon with the first Phase 0 Beacon Chain to be launched in December 2020. Leading up to this, Ethereum stakers need to deposit at least 32 Ether onto the Beacon Chain using a deposit contract. Therefore Ledger has updated the Nano X’s new firmware version 1.2.4-5, in which the Ethereum application update to version 1.6.0 allows users to sign a deposit contract transaction directly on the Ledger Nano X. This feature is EXCLUSIVE to the Ledger Nano X.
In the future, users would be able to use their Ledger Nano X to derive an Ethereum 2.0 public key and validate that the withdrawal public key used in the deposit contract does actually belong to the Ledger device. The Ledger team are also working on a second Ethereum application which would allow stakers to securely sign blocks on the Beacon Chain.
5/5 Multi Currency Support
Hardware Design
Input is made with the two circular buttons
The new Ledger Nano X has two hardware buttons – hidden in the circular design of the cover pivot. These two buttons allows us to access menus (hold both buttons), make selections (press both buttons), and even input recovery phrases (use buttons to scroll). We found that entering PINs and recovery phrases to be tedious with only 2 buttons – perhaps a touchscreen or additional buttons could of helped.
Nano X has a larger screen with higher resolution. This means that full cryptocurrency addresses could be displaced without scrolling – something that was sorely lacking in the Nano S.
The Nano X uses a modern USB-C interface for charging and connecting to the PC. This is a welcomed upgrade as the computing world migrates to USB-C.
The Nano X also now comes in 3 colours: Onyx Black, Blazing Orange and Cosmic Purple.
Ledger Nano X can be used with mobile devices, and transactions can be sent on the go using the Ledger Live app on mobile. We found this feature to be very situational. Whilst it is helpful to be sending crypto on the go with the security the Nano X provides, the convenience is lacking when compared to mobile wallets like the Enjin Wallet. A separation confirmation set is needed: unlock device via PIN, enter the cryptocurrency app, check and confirm the transaction. This feels tedious and not suitable for simple coffee purchases or small transactions. What does make sense is perhaps large purchases (a car or house?) or token sale investments. However, the question remains, how frequently do we need to send large amounts of crypto on the go?
How do you Update the Ledger Nano X
Ledger periodically releases updates for the Ledger Nano X to improve security, functionality and coin support. In fact, firmware updates are required in order to get support for the latest cryptocurrencies. In order to update the firmware, plug the Nano X into your computer and run the Ledger Live app. The app will automatically display your version number and show any available firmware updates. To initiate the update, click the update button and confirm the installation in the Nano X by pressing down both buttons when prompted to “allow ledger manager” to access the device.
Ledger Nano X worth the upgrade?
At $119, the Ledger Nano X is not a budget device – it commands a certain price premium making the upgrade decision harder for many users. For many, the deal breaker convenience features – the large screen that displays full cryptocurrency addresses and larger storage for more apps. If these features are important for you, then the Nano X is worth the upgrade. However, if you only need a few apps, the budget friendly Ledger Nano S is a better option at $59.
Ledger Nano X compared with Trezor Model T
The biggest difference between the Ledger Nano X and the Trezor Model T is the screen and supported coins. The Trezor Model T has nice touch screen which helps with entering PIN and the security phrases. However, the Trezor has fewer supported coins and usually projects tend to release Ledger support first. The following table is a comparison between various hardware wallets, including the release date, external security certification (if any), release date and our review rating.
At the end of the day, choosing between the Ledger Nano X and other hardware wallets is mostly based on 1 question – are the cryptocurrencies you want supported on the device. Support for a large number of coins has always been Ledger’s strong suit, along for browser support in Decentralized exchanges (Binance DEX, IDEX and Switcheo)
Can you keep your coins when upgrading from the Ledger Nano S to Ledger Nano X? Yes. When doing the upgrade, choose to “restore” option during setup and enter the 24 word recovery phrase from the Ledger Nano S backup
Can the Bluetooth Feature be turned Off in Ledger Nano X? Yes, Bluetooth can be disabled in the Control panel. This will disable Bluetooth communications and only allow the Ledger the communicate via the USB cable. You can access the panel by holding down both buttons for 3 seconds.
Can many apps can you install on the Ledger Nano X? We found that the Ledger Nano X can hold all 73 Apps currently available on the Ledger Manager. There is even more storage available for future applications.
Why does the Ledger Nano X Bitcoin Address change? Ledger includes a feature to automatically generate a new Bitcoin address each time an old one is used. This increases the privacy of transactions, as different addresses are used for new transactions. Old addresses can still be used as the Ledger contains full access (include future access) to these funds.
How do you generate a new public address for receiving funds New Public addresses are automatically generated when old ones are used (the address receives or sends a transaction).
What is the latest Ledger Firmware Currently the latest firmware is 1.6.0
Will the Coronavirus (COVID-19) pandemic affect Ledger? Ledger has issued a statement saying they have in place business continuity measures to ensure they continue to have inventory and products to ship to its customers. They are however experiencing some backlog in their customer service side but are working to ensure that customer’s concerns are answered. You can check the operational status of their systems here. Inevitably there may be issues with shipping products to customers, they are still able to ship to most countries though some customers may experience limited shipping options. Check here to see if shipping to your country may be affected.
Just got a new Ledger Nano X? or always been curious about getting started with Bitcoin and other cryptocurrencies? Check out my course created in collaboration with Jeff Kirdeikis of Uptrennd- Bitcademy: Learn, Invest & Trade Bitcoin – In Under an Hour
Ethereum 2.0 (Formerly known as ETH2) is a series of upgrades to the Ethereum Blockchain which will improve its speed, efficiency, and scalability. This will allow Ethereum to handle significantly more transactions, improve smart contract stability and reduce network fees. Upon reaching the final phase of the upgrade, Ethereum will meet its goals of becoming a transparent and open network for Decentralized Finance (DeFi). This article breaks down the roadmap for this upgrade and key milestones of when they are released. The next big update coming in the second half of 2023 is the “Shanghai upgrade” which will have a significant economic impact.
What is Ethereum 2.0?
Ethereum 2.0 will involve sharding to drastically increase network bandwidth and reduce gas costs, making it cheaper to send cryptocurrencies and interact with smart contracts. There will be fundamental economic changes too, Ethereum 2.0 will allow support to stake nodes and to earn Ethereum as passive income. The Ethereum 2.0 upgrade will be done in 3 distinct phases starting with Phase 0 (after all, developers count from 0 instead of 1). Over the past few years, opponents of Ethereum have often criticized the network’s high transaction costs and fragility during peak usage. This guide will cover the timeline for the upgrade to ETH2.0 and the solutions proposed.
Ethereum 2.0 Key features and what you need to know video
Key Features of Ethereum 2.0
Efficiency – Ethereum will become 99.95% more energy efficient. It is estimated that after the upgrade, the network will no longer require an entire country’s worth of power.
Sharding – Ethereum will be broken into 18 “Shards” that operate simultaneously. This will drastically improve efficiency.
Staking – Ethereum will move to Proof-of-Stake Consensus, so everyone can stake and help secure the network.
Security – Compromising the network will become much more expensive under Proof-of-Stake. 51% of attackers will also be easily identifiable with validator addresses and can be forked away from the network.
The 3 Phases of Ethereum 2.0
Ethereum 2.0 will be launched in 3 phases:
Phase 0- Beacon Chain – Completed in 2020
Phase 1- The Merge – Completed September 2022
Phase 2- Sharding
Phase 0: Beacon Chain
Launched on 1st December 2020, the Beacon Chain introduced Proof-of-Stake to the Ethereum ecosystem. The purpose of the Beacon Chain is to coordinate the Ethereum network and serve as the consensus layer. This Beacon chain is necessary to generate the randomness that actual proof of stake uses. It also acts as a crucial precursor to upcoming phases such as sharding.
The Ethereum Merge was completed on the 15th of September 2022. This merged the Beacon chain from phase 0 into the original proof-of-work mainnet (i.e. the “execution layer”, formerly known as “Eth1”). After the Merge is completed, ETH1 and ETH2 become the same network that uses the same ETH coin. Why the merge is so important and such a difficult task because it involved switching consensus mechanisms. An analogy for this would be switching the engine of a car from a gas to an electric-powered engine – whilst the car is still moving.
The Merge made the Ethereum network substantially more energy efficient as it no longer required cryptocurrency miners that consumed a huge amount of electrical power. It is calculated that there is an incredible 99.988% reduction in the energy necessary to run the network, meaning that current Ethereum Staking Nodes are incredibly energy efficient. It will also set the stage for future upgrades to the scalability of Ethereum such as sharding.
Phase 2: Sharding
By then, the Beacon Chain has already been launched and merged with the Ethereum Mainnet. The next stage will introduce sharding to the Ethereum Network.
Sharding on Ethereum means the database would be split horizontally to spread the load. Sharding will work together with layer 2 rollups. This divides the burden of handling large amounts of data needed by rollups over the entire Ethereum network.
Ethereum Sharding is realistically expected to be released in 2024.
Main features of sharding:
Everyone can run a node: Validators will no longer need to store all the data themselves. This drastically reduces the cost of storing data on layer 1 by reducing the hardware requirements.
More network participation and security: With sharding, you will be able to run Ethereum on a laptop or phone. This means more participation, greater decentralization, and more security.
What are layer 2 rollups?
Layer 2 rollups are an existing “layer 2” technology. This allows decentralized applications (dApps) to “roll up” transactions into one off-chain for submission. The effect of this is that it reduces the data needed to execute a transaction.
The combination of layer 2 rollups and sharding is what will achieve a transaction speed of 100,000 tps.
3 upgrades have been introduced since the launch of the Beacon Chain on 1st December 2020: the Berlin upgrade, London upgrade, Altair upgrade and Shanghai upgrade.
The Berlin upgrade was launched on 15th April 2021 and optimized gas costs for some EVM actions and increased support for several transaction types. The London upgrade was launched on 5th August 2021 and reformed the transaction fee market for the ETH 1.0 chain via EIP-1559 and removed or reduced gas fees for specific functions (Learn more about the London upgrade). The Altair upgrade was launched on 27th October 2021 and is the first scheduled upgrade for Ethereum’s Beacon Chain. It added support for “sync committees” which enabled light clients, brought validator inactivity, and slashed penalties up to their maximum values.
The Ethereum network’s Shanghai upgrade (also known as Shapella) was successfully completed at 22:27 UTC on 12th April 2023. To celebrate this milestone, ConsenSys launched an NFT collection called “Ethereum, Evolved: Shanghai”. The NFT claim period begins on April 12, 2023, at 9pm EST and lasts for 72 hours. Find out how to claim this FREE NFT with our guide here.
The next major Ethereum upgrade is titled Cancun, which will feature proto-dank sharding,a feature that aims to improve scalability by improving fees and transaction times. The details of the Cancun upgrade have not yet been finalized.
Shanghai (Shapella) upgrade
The Ethereum network’s Shanghai (also known as Shapella) upgrade took effect at 22:27 UTC on 12th April 2023 and was very successful. This upgrade combined changes to the execution layer (i.e. Shanghai), consensus layer (i.e. Capella), and engine API at epoch 194,048. The Shapella upgrade is important because it finally enabled withdrawals of ETH stakers/validators from the Beacon Chain, ahead of the implementation of the Ethereum Improvement Proposal (EIP)-4884 related to The Surge. This will improve the security of Ethereum’s post-Merge proof-of-stake protocol.
Additionally, a set of EIPs that upgrade the Ethereum Virtual Machine (EVM) will be included in the Shanghai upgrade, such as EIP-3651: Warm Coinbase, EIP-3855: PUSH0 instruction, EIP-3860: Limit and meter initcode and EIP-4895: Beacon chain push withdrawals as operations. The EVM Object Format (EOF) may be removed from the Shanghai upgrade if it is not ready by the time of implementation. Once the Shanghai upgrade is complete, the network’s next major event is the Sharding upgrade, which is expected to take place between 2023 and 2024.
How much ETH has been withdrawn since the Shanghai (Shapella) upgrade?
Since the Shanghai (Shapella) upgrade 228.82K $ETH has been withdrawn with 100.51K $ETH deposited (as of 10:00am HKT on 14th April 2023). At the same time, the current amount of $ETH being staked is 17.38M ($34.97B). And the pending withdrawal amount (including rewards) is 981K ($2.07B). Around 60.99K ($126.89M), is expected to be withdrawn in the next 11 hours.
You can see how much ETH has been withdrawn, deposited or staked since the Shanghai (Shapella) upgrade here.
Ethereum ETH prices since the Shanghai (Shapella) upgrade?
The Ethereum Shanghai (Shapella) upgrade took effect at 22:27 UTC on 12th April 2023 (06:27 on 13th April 2023 HKT). Before the upgrade, ETH was only trading at around $1,920 and remained the same a few hours after. However, the full effect of the Shanghai upgrade on Ethereum prices was seen around half a day and particularly 24 hours after the Shanghai upgrade. As of 11:30am HKT on 14th April 2023 (nearly 1.5 days after the Shanghai upgrade), Ethereum is trading at $2,109.87.
How to set up an Ethereum Validator Node
Check out our LIVE demonstration on how to set up an Ethereum 2.0 Node
How to set up an Ethereum 2.0 node
I’ve also set up something called an Ethereum validator node for Ethereum 2.0. These nodes will be how Ethereum would run and how transactions are going to be validated in the future. So we’re going to explore all of these concepts as well in this guide.
Currently you can test out Ethereum staking on the ETH 2.0 Testnet set up by Prysmatic labs (aka Topaz). Since it’s a test, Ethereum will not be used, instead, it will use Göerli ETH, a free testnet version of ETH.
Time needed: 2 days
How to set up an Ethereum (ETH) Validator Node This guide has been adapted from the Prysm ‘Topaz’ Testnet Guide
Get some Göerli ETH
Göerli ETH is free to obtain and will be used to stake the 32 ETH required for the node. The easiest way to obtain the Göerli ETH is to use the social faucet.
Spin up a Server
You’ll need to be familiar with running a VPS server (you can use AWS, Hetzner or Linode). Recommended specs include an Intel Core i7 processor with 100 GB of SSD storage
Start your Beacon Node
Easiest way we found to do this is via Docker docker run -it -v $HOME/prysm/beacon:/data -p 4000:4000 -p 13000:13000 \ gcr.io/prysmaticlabs/prysm/beacon-chain:latest \ –datadir=/data
Wait (roughly 2 days) to get activated, and then you’re good to go!
Staking Ethereum on a validator node
Ethereum 2.0 migrated the network consensus to a proof of stake mechanism. The staked 32 ETH2 is used to validate the transactions and states on the network. It also acts as a guarantee that the validator node will be honest and operational. In return, stakers will be rewarded with Ethereum.
This means that validators will generate Ethereum as passive income and receive ETH payouts slowly over time. Current calculations of Ethereum 2.0 staking show an annual 14.2% Return on Investment (ROI).
This will be great for those who stake ETH. This is because they can enjoy the benefits of passive income whilst personally holding their funds on the validator node. Analysts predict greater demand for ETH once proof of stake is implemented. This is due to additional demand for ETH from staking and validator nodes. Whilst at the same time, reduced demand for GPUs as Ethereum mining will eventually be phased out.
You can see the status of our Ethereum validator node in the image above. We had some initial downtime for the node, so we actually lost 0.01333 Ether. This was a penalty for missing our votes. So it is important to remember that votes are mandatory once a node is activated. An offline node will mean that votes are missed, resulting in a penalty of loss of ETH.
On 4th Nov 2020 the required specifications of ETH2 v1 and the Mainnet Deposit Contract Address for staking were released. This allowed ETH2 users to stake their ETH and become validators to help secure the network.
It’s important to remember that it is not possible to simply send ETH to the contract. This will result in your transaction failing. You need to go through the launchpad and follow the guide. Moreover, as we stated previously, staking and running a validator requires effort, time and technical expertise. Failing to meet requirements can result in loss of part of, if not all, your ETH as penalties add up.
Ethereum Staking Update: Yields?
As of April 2023, I have earned around 4.373 ETH since setting it up 3 years ago. Note that results may vary. Those who set up their node earlier (as was in my case) were able to enjoy 16% APY. The current APR yield for staking ETH is around 5.16%. You can check the current APR, total ETH staked, and number of validators here.
Ethereum staking since the Shanghai Upgrade
The APR yield for staking ETH since the Shanghai Upgrade is still very good at around 5.16%. So I am planning to continue staking ETH so I don’t miss out on this opportunity to earn more yield.
My logic right now
* unstake ETH node
* move from paper to hardware wallet
* buy more ETH
* stake more #Ethereum is going to some crazy places, definitely don’t want to miss out
More than 17.3 million $ETH is currently staked. Since the Shanghai Upgrade on 12th April 2023, over 107K $ETH has been deposited in the contract address. There are currently 568,291 validators and a Participation Rate of over 99%. The Participation Rate is a measure of ETH2’s network health as it shows the number of validators actively participating in the consensus mechanism. A good rate would be always above 80-90% to ensure the security of the chain.
Unlike before, Ethereum 2 proceeds in epochs (32 blocks), every 6.4 minutes (if no abnormalities are detected). You can always check this metric here: beaconscan.com/epochs.
What’s next in the development of Ethereum 2.0?
Phase 0 – Beacon Chain is already completed, and development would move onto building Phase 1- The Merge and Phase 2-Shard Chains.
Ethereum 2.0 setup and architecture
Currently, we are in Phase 1 of the roadmap the road towards Ethereum 2.0. The Ethereum network is now around 55% complete following the Merge of the Beacon Chain with the Ethereum mainnet in September 2022.
After the Merge, Ethereum will have further upgrades which Vitalik calls the “surge”, “scourge”, “verge”,”purge” and “splurge”. This refers to Ethereum’s scaling, cleanup and evolution.
What is the “surge”, “scourge”, “verge” “purge” and “splurge” in the development of Ethereum 2.0?
After the Merge, Ethereum will undergo further upgrades known as the “surge”, “scourge”, “verge” “purge” and “splurge”.
The “surge” in the development of Ethereum 2.0 refers to adding Ethereum sharding. The purpose of this is to enable more affordable layer-2 blockchains, reduce the cost of rollups, and make it easier for users to operate nodes to secure the network. Once the surge is completed, the Ethereum network is expected to be able to process transactions faster. Ethereum could process up to 100,000 transactions a second once sharding is completed. This is much faster than traditional payment systems such as Visa which can handle around 1,667 transactions per second.
The “scourge” is a new phase announced by Vitalik on 5th November 2022. The purpose of this stage is to ensure reliable and credibly neutral transaction inclusion. Also, to avoid centralization and other protocol risks from MEV.
The “verge” will introduce “stateless clients” and “Verkle trees”- which are a form of mathematical proof. This enables users to become network validators without storing lots of data on their machines. This is a further step in the move toward a Proof-of-Stake consensus model as any validator with staked ETH can confirm and verify transactions. This will be hugely beneficial for decentralization.
The next stage, the “purge” will involve cleaning up old network history. This is to reduce the amount of space required on your hard drive and remove the requirement of nodes to store historical information.
The “splurge” would be several smaller upgrades and fine-tuning in order to ensure that the network operates smoothly. Or as Vitalik calls it, “all the other fun stuff”.
Currently, the Ethereum network can only process around 12 to 25 tps with an average confirmation time of 6 minutes. The result is that the Ethereum network is heavily congested with people all vying to process transactions, resulting in high gas fees.
Many “Ethereum killers” have therefore been launched. These are alternatives people can use for processing transactions. Some Ethereum alternatives include Solana, Avalanche, Polkadot, Algorand, and Cardano. They are a direct competitor to Ethereum as they offer similar features but at lower cost and higher speed.
Eventually, the number of transactions per second will drastically increase to over 100,000 tps. So the question would be, what would happen to the competition i.e. the “Ethereum killers”? Find out more in our article: Ethereum Merge is coming, is this the end of Ethereum killers?
Frequently Asked Questions (FAQ)
Will Ethereum 2.0 replace Ethereum?
Ethereum 2.0 will not replace Ethereum. Rather, Ethereum and Ethereum 2.0 will be merged together into 2 layers of the same blockchain. Ethereum as we know it will be the execution layer, whilst Ethereum 2.0 will be the consensus layer.
Will there be any difference in using the ETH as I am used to?
No, ETH1 will continue as it is with no differences. ETH2 is setting up on a parallel line and the two will merge in the future. The merge will happen without ETH users being able to notice it
When will Ethereum mining end?
Ethereum mining will not end for quite a few years. Ethereum will retain mining on the main chain until at least 2020. The main ETH1 chain will continue to use mining and run parallel to the ETH2.0 chain. This is to ensure stability during the migration
Should I stake my ETH for ETH2?
It does not cost any money to set up a validator node to stake ETH for ETH2. Staking ETH will allow you to generate passive income. However, you will need to stake at least 32 ETH, and if your node suffers downtime your ETH will be partially deducted as penalties. Also, your staked ETH cannot be unstaked until after the Ethereum Shanghai Upgrade.
What are the minimum hardware requirements to become an ETH validator?
Following this list on Prysm website to install the client:
Minimum specifications
Operating System: 64-bit Linux, Mac OS X 10.14+, Windows 64-bit Processor: Intel Core i5–760 or AMD FX-8100 or better Memory: 8GB RAM Storage: 20GB available space SSD Internet: Broadband connection
Recommended specifications
Processor: Intel Core i7–4770 or AMD FX-8310 or better Memory: 16GB RAM Storage: 100GB available space SSD Internet: Broadband connection
Can I lose my ETH Deposit in the Node?
Yes. The 32 ETH staked for the validator node is designed as an insurance that the validator node is operational and online at all times. Penalties will be given if the node is offline, and small amounts of ETH will be deducted over time.
What is the expected APR yield for staking ETH?
The current APR yield for staking ETH is 3.7%. Here you can have an idea of the APR (in ETH) as it varies with the number of ETH staked (source).
Is staking ETH for ETH2 safe or risky?
Staking ETH for ETH2 is safe and does not have any significant risks. However, stakers will not be able to withdraw their staked ETH until after the Shanghai hard fork in March 2023. Also, if your validator node goes offline, you will be penalised by a deduction of your staked ETH.
Are there projects that will allow me to stake even if I have less than 32 ETH?
If you want to participate in ETH2 staking but you don’t own the minimum amount required to become a validator, or you don’t want to stake an exact multiple of 32 ETH, don’t worry. There will be possibilities through Centralized Exchanges (like Binance and Coinbase) and not only. A big advantage in this case, is to receive liquidity for your staked ETH. RoocketPool ($RPL), now in beta, will correspond rETH (1:1 with ETH), a tokenized asset that you will be able to trade freely. Lido Finance will do a similar thing through their stETH. LiquidStake will instead let you borrow USDC for your staked ETH collateral. Many other solutions will arise as ETH2 will start its journey; for example, Cream Finance ($CREAM) has recently released an article explaining that user will receive the ETH2P token when joining ETH2 staking through them
Can you withdraw ETH2 back to regular ETH?
In Phase 0, ETH2 cannot be withdrawn back to regular ETH. Once converted, ETH2 will only be usable on the Staking Chain until Phase 3.
What can I do with my ETH2?
At the moment you cannot do anything with your ETH2. They are just “digital receipts”. Transactions or other features we have now on ETH won’t be available on ETH2 for probably years. There are rumors of a possible secondary market where to trade them though.
When can I buy and sell ETH2?
You cannot buy or sell ETH2 yet. ETH2 will only be available for trading or transfer until Phase 3 when the upgrade of the Ethereum protocol is complete.
Should I buy ETH2 or ETH?
ETH2 is not available for sale yet, so users should be careful of any places that offer ETH2 for sale. ETH on the other hand can be bought and traded at almost every cryptocurrency exchange.
Is testnet ETH worth the same as ETH?
ETH on testnets do not have any monetary value. They essentially allow developers to test and troubleshoot DApps and protocols before going live on the Ethereum mainnet. As a result, there are no markets for testnet ETHs.
Will Ethereum gas fees be cheaper after The Merge?
The Merge will not make Ethereum gas fees cheaper. This is because The Merge is only a change in the consensus mechanism from Proof-of-Work to Proof-of-Stake. Only an expansion of the Ethereum network capacity and throughput would lower the gas fees. However, this is still in development.
Will I be able to withdraw my staked ETH after The Merge?
There is currently locked staked ETH (stETH) on the Beacon Chain. stETH is backed 1:1 by Ether (ETH). However, developers have confirmed that users will not be able to withdraw their locked stETH after The Merge. Withdrawal of stETH will instead be possible after the Shanghai Upgrade which is expected to be in second half of 2023.
Will Ethereum transactions be faster after The Merge?
Ethereum developers believe that transitioning to Proof-of-Stake will result in a 10% increase in block production. However, users are unlikely to be able to notice this slight improvement.
Will Ethereum ETH 2.0 be a new coin?
No. There will not be a new ETH coin after the launch of Ethereum 2.0. Therefore, existing ETH holders, users of dApps, and traders do not have to do anything in anticipation of Ethereum 2.0. Therefore, users should be wary of websites or services claiming that they will allow users to trade, invest, mine, swap, or stake the ETH2 token. This is because the ETH2 token doesn’t actually exist.
Will there be any tax implications resulting from The Merge?
If The Merge does not result in a hard fork, then there are no tax implications because no new tokens would be created.
However, if the Merge results in a hard fork, ETH holders would be sent duplicate tokens which may have tax implications. If the ETH is held in user-owned wallets, new proof-of-work ETH tokens would be considered as income, and its valuation calculated at the time the user comes into possession of the tokens. On the other hand, if the ETH is held in custodial wallets such as cryptocurrency exchanges, the implications would depend on the custodians’ stance on supporting the forked ETH chain.
Will dApps or exchanges be affected by Ethereum 2.0?
The launch of Ethereum 2.0 will not cause a huge impact on users’ interactions with blockchain dApps or cryptocurrency exchanges and services.
Will exchanges be shut down during the ETH Merge?
Ethereum developers have confirmed that during the Merge, there would not be any downtime.
When was the Ethereum Merge?
On 15th September 2022 at 06:42:42 UTC at block 15537393, the Ethereum Merge was completed.
Will ETH holders be airdropped new tokens after Ethereum 2.0?
There are currently no plans for an airdrop of new tokens for ETH holders after the launch of Ethereum 2.0. So far, Vitalik Buterin and the Ethereum Foundation have expressed that they are firmly against any forked ETH tokens.
Therefore, any websites or social media accounts purporting to airdrop Ethereum tokens are most likely a scam.
What is the ETHPOW or ETHW token?
ETHPOW or ETHW is the token that will emerge if there is a fork of the Ethereum blockchain. During the Merge, some community members may disagree (e.g. want to stay with the Proof of Work mechanism) and fork ETH. What they may do, is “copy and paste” the Ethereum blockchain. The result of this is there would be 2 blockchains and 2 tokens. There would be the existing Ethereum blockchain that goes through the Merge with the ETH token. And then there would be the forked chain with a new token called ETHPOW or ETHW.
How can I get the airdropped free ETHPOW/ETHW token?
If you held Ethereum prior to the Ethereum Merge, you will be airdropped (via the fork) free ETHPOW tokens
When can I stop staking my ETH?
Those who have staked their ETH cannot stop staking until the Shanghai hard fork, which is expected in the second half of 2023.
Where can I buy or trade the EthereumPoW ($ETHW) token?
The EthereumPoW ($ETHW) token is not widely traded on cryptocurrency exchanges. However, you can buy or trade the EthereumPoW ($ETHW) on these exchanges: OKX, ByBit, Kraken, Huobi, MEXC Global, Gate.io, Bitfinex, Bittrex, Poloniex and Hotbit.
What is the next upgrade to the Ethereum network
The next upgrade to the Ethereum network is known as the Shanghai upgrade. A major anticipated feature of this upgrade is that withdrawals of ETH stakers/validators from the Beacon Chain will be enabled. The Ethereum network Shanghai upgrade is expected to be in March 2023.
Will there be an Ethereum hard fork after the Merge?
A hard fork is a backward-compatible and permanent split or fork of the blockchain. After a hard fork, a separate version of the blockchain will emerge, as well as a new cryptocurrency token. There is speculation that the Merge may result in a hard fork. This is because some want to take advantage and profit from the Merge. Alternatively, a hard fork may be formed by those who disagree with the direction of Ethereum’s development. A group known as ETHW Core announced they will launch a hard fork within 24 hours of the Merge. This is because they oppose the change to a proof-of-stake mechanism, which essentially puts an end to ETH mining. Several hours after the Merge, the ETHW mainnet and fork of the Ethereum blockchain was launched.
Tax implications resulting from The Merge or Ethereum hard fork?
If The Merge does not result in a hard fork, then there are no tax implications because no new tokens would be created.
How has Ethereum 2.0 impacted its price
If all the phases are completed successfully, Ethereum prices are expected to increase. This is because each phase of the upgrade gives significant upgrades that will improve the performance of the blockchain. This will further grow its utility and value.
What will happen to Ethereum mining?
Ethereum mining is the process of adding blocks of transactions to the Ethereum blockchain. This is to help secure the Ethereum network through a Proof-of-Work (PoW) mechanism. Miners are then rewarded with ether (ETH) which can be traded on cryptocurrency exchanges. Therefore, many people would run Ethereum miners for profit. However, the launch of ETH2.0 will fundamentally change the current economics. The existing Proof-of-Work (PoW) consensus mechanism will be replaced by Proof-of-Stake (PoS). The concept of mining will be retired once the Ethereum 2.0 update is fully completed. For more details check out our article: The end for Ethereum miners after ETH 2.0?
What is the status of the Ethereum Shanghai upgrade?
The Shanghai (Shapella) network upgrade took place at 22:27 UTC on 12th April 2023.
Will Ethereum 2.0 replace Ethereum?
No, but how transactions will be confirmed will change. Previously Ethereum uses Proof of Work (PoW) to confirm transactions. However, Ethereum 2.0 will transition to a Proof of Stake (PoS) consensus mechanism.
What is the Shapella upgrade?
The Shapella upgrade is another name for the Ethereum Shanghai upgrade. It is called the Shapella upgrade because it combines changes from the Shanghai (execution layer) and Capella (consensus layer). This upgrade took place at 22:27 UTC on 12th April 2023.
How much ETH has been withdrawn since the Shanghai (Shapella) upgrade?
Since the Shanghai (Shapella) upgrade, 228.82K $ETH has been withdrawn (as of 10:00am HKT on 14th April 2023). The pending withdrawal amount (including rewards) is 981K ($2.07B). Around 60.99K ($126.89M), is expected to be withdrawn in the next 11 hours.
Where can I see how much ETH has been withdrawn or staked since the Shanghai (Shapella) upgrade?
You can see how much ETH has been withdrawn, deposited or staked since the Shanghai (Shapella) upgrade here.
Ethereum ETH prices since the Shanghai (Shapella) upgrade?
Ethereum ETH prices eventually received a positive boost hours after the Shanghai (Shapella) upgrade. Before the upgrade, ETH was only trading at around $1,920. Nearly 1.5 days after the Shanghai upgrade, Ethereum is trading at $2,109.87.
What is the current APR for staking Ethereum?
The current APR yield for staking Ethereum is around 5.16%
Updates:
Update Nov 2022: Ethereum 2.0 has recently gone through some changes – it is now called the Ethereum Merge. Update Jan 2023: Added details about Ethereum Shanghai Upgrade Update Apr 2023: Added details about Ethereum Shanghai Upgrade and its effect on ETH prices.
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Ethereum Shanghai Upgrade is scheduled for April 12th and includes key economical changes to Ethereum and fee optimizations that will improve the network. This upgrade is part of Ethereum’s upgrade plan into Ethereum 2.0 – a faster, cheaper and more stable public blockchain. The main purpose of the Shanghai Upgrade is financial – it will allow stakers and validators to withdraw staked ETH from the Beacon Chain, which has been locked since December 2020. Some users have feared that this change will unlock $26 billion USD worth of Ethereum, potentially causing Ethereum’s prices to fall.
Staked Ethereum is Unlocking
The key feature of the Shanghai Upgrade is Ethereum Improvement Proposal (EIP) 4895, which will enable validators to withdraw staked ETH. Validators have staked approximately 16 million ETH to secure the network. Validators can participate in validating blocks by staking 32 ETH in the chain, and each staked ETH increases the likelihood of a validator receiving block rewards.
Validators have been staking ETH and earning rewards for validating blocks since the launch of Ethereum’s Beacon Chain in December 2020. However, the rewards earned by validators have been locked since the transition to PoS consensus in September 2022. With the Shanghai Upgrade, validators will finally be able to withdraw their rewards.
The withdrawal of staked ETH has been successfully simulated on the Zhejiang testnet. The Zhejiang testnet is the first of three testnets that will run the simulation. The Sepolia and Goerli testnets will follow, running the simulation in the coming weeks.
Key Improvements (EIP) in the Shanghai Upgrade:
EIP-3651: Warm COINBASE – This EIP aims to lower the gas cost of accessing the COINBASE address, which is a software component that allows developers to receive new tokens.
EIP-3855: PUSH0 instruction – This EIP aims to lower the gas cost of deploying contracts by introducing a new PUSH0 instruction.
EIP-3860: Limit and meter initcode – This EIP introduces a gas cost limit and meter for contract initialization code, which should help to reduce gas costs for developers.
EIP-4895: Beacon Chain push withdrawals as operations – This EIP is one of the key features of the Shanghai upgrade, as it allows validators to withdraw staked ETH from the Beacon Chain.
EIP-6049: Deprecate SELFDESTRUCT – This EIP aims to reduce the risk of contract failure by deprecating the SELFDESTRUCT instruction, which can lead to the loss of funds if used improperly.
These EIPs will reduce gas costs related to Maximal Extractable Value payments when accessing the COINBASE address, lower gas costs for developers, cap developer gas costs in certain cases, and address a similar concern.
The Shanghai Upgrade does not include EIP-4844, which facilitates the “sharding” of the Ethereum blockchain into multiple chains to enhance scalability. Sharding is a scalability solution that divides the whole network of a blockchain into multiple smaller networks called shards.
Validators will have two options for withdrawing their staked ETH. The first option is to create a “withdrawal credential” to unstake their staking rewards accumulated over the past years. The second option is to exit the Beacon Chain completely by unstaking all of their 32 ETH, which is the maximum allowed per validator.
The Shanghai Upgrade is expected to have a significant impact on the market. Approximately 16 million staked ETH will be available for withdrawal, and traders are paying attention to how the market may move. Some traders believe that the upgrade will trigger a selling wave, with many taking profit once staked ETH is unlocked. Others believe that the upgrade will encourage more staking.
Conclusion
The Ethereum Shanghai Upgrade is a minor upgrade for the Ethereum network (albeit a large upgrade in terms of unlocked Ethereum). The Ethereum core developers use this upgrade to stabilize the network rather than to deploy aggressive changes. This is why most of the improvements are smaller quality of life improvements rather than fundamental architecture changes.
The biggest impact of Shanghai has to do with staking and locked tokens. It will enable validators to withdraw staked ETH from the Beacon Chain, which has been locked since December 2020. The upgrade includes several other EIPs that aim to reduce gas costs for Ethereum developers. While it is unclear how the upgrade will impact the market in the short term, it is certain that traders will be watching how much of the available ETH will be cashed out, which could push the price of ETH down.
