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Category: Ethereum

Ethereum is smart contract platform- it allows for the deployment of decentralized applications (Dapps). Dapps are programs that obey a certain set of conditions that cannot be altered once published – not even by the creator of the contract.
Programmable money can replace the use of third-party escrow or brokers by programming conditions directly into the transaction.

  • Ethereum (ETH): What is it? The complete beginners guide

    Ethereum (ETH): What is it? The complete beginners guide

    What is Ethereum?

    Ethereum is a decentralized blockchain platform that allows developers to build and deploy smart contracts and decentralized applications (dApps). First proposed in 2013 by Vitalik Buterin, Ethereum has grown into one of the most influential technologies in the blockchain space, supporting a vast ecosystem of financial services, gaming platforms, social networks, and enterprise solutions.

    Decentralization vs. Centralization

    Most traditional systems—such as banks, tech companies, and social media platforms—operate under centralized control. Ethereum offers an alternative model where users interact directly through trustless protocols, eliminating intermediaries and enabling peer-to-peer collaboration.

    Ethereum Network and Ether (ETH)

    Ethereum provides the infrastructure for executing smart contracts, running dApps, and managing tokenized assets. Its native currency, Ether (ETH), is used to pay for transactions and computational services—commonly referred to as “gas.” ETH also functions as a store of value and is widely used across decentralized finance (DeFi) platforms.

    Smart Contracts and dApps

    Smart contracts are self-executing programs that run exactly as coded, without human intervention. Developers use Ethereum’s programming language, Solidity, to create dApps that span industries such as finance, insurance, gaming, and identity verification.

    Key characteristics of dApps include:

    • Open Source: Code is publicly accessible and governed by community consensus.
    • Decentralized: Data is stored on the blockchain and not controlled by any single entity.
    • Incentivized: Users are rewarded with tokens for participation.
    • Protocol-Based: Operates on cryptographic algorithms agreed upon by the community.

    Ethereum 2.0 and Recent Developments

    Ethereum completed its transition to Proof of Stake (PoS) in 2022, replacing the energy-intensive Proof of Work (PoW) model. This shift significantly reduced Ethereum’s energy consumption and introduced staking, allowing users to lock up ETH to help secure the network and earn rewards.

    Recent upgrades include:

    • Danksharding: Enhances scalability and reduces transaction costs by improving data availability.
    • Verkle Trees: Introduces a new data structure that optimizes storage and makes Ethereum nodes more efficient.
    • Account Abstraction: Simplifies wallet interactions and enables programmable accounts.

    As of mid-2025, Ethereum supports over one million active dApps and secures more than $500 billion in value across DeFi, NFTs, and enterprise applications.

    What is Decentralization

    Decentralization distributes control across a network, removing reliance on central authorities. Ethereum leads this shift by running smart contracts and dApps on a global node network, secured by Proof of Stake. Upgrades like Danksharding, Verkle Trees, and Account Abstraction have made it more scalable and user-friendly. By 2025, decentralization powers not just finance but also identity, governance, and digital platforms.

    Ethereum Network

    Ethereum is a decentralized smart contract platform that enables developers to build dApps and financial protocols without relying on central authorities. As of 2025, it runs on Proof of Stake, with major upgrades like Danksharding, Verkle Trees, and Account Abstraction improving scalability, efficiency, and user experience. Ether (ETH) remains the native currency, used for transactions and powering smart contracts across a diverse ecosystem spanning finance, gaming, identity, and more.

    Decentralized Platform

    Ethereum is a decentralized smart contract platform that enables developers to build dApps and financial protocols without relying on central authorities. As of 2025, it runs on Proof of Stake, with major upgrades like Danksharding, Verkle Trees, and Account Abstraction improving scalability, efficiency, and user experience. Ether (ETH) remains the native currency, used for transactions and powering smart contracts across a diverse ecosystem spanning finance, gaming, identity, and more.

    Main features of Ethereum

    Ethereum 2
    Ethereum 2

    Ethereum is a decentralized, open-source platform designed for building and running smart contracts and dApps. Its key features include:

    • Decentralized Infrastructure: No single entity controls the network; thousands of nodes maintain consensus globally.
    • Proof of Stake (PoS): Since 2022, Ethereum uses PoS for energy-efficient validation and staking rewards.
    • Smart Contract Automation: Programs execute automatically based on predefined conditions, without human intervention.
    • Public Accessibility: Anyone with an internet connection can interact with the network and deploy applications.
    • Native Currency (ETH): Ether is used to pay for gas fees, secure the network, and facilitate transactions.
    • Scalability Enhancements: Danksharding and Verkle Trees improve data efficiency and reduce transaction costs.
    • Account Abstraction: Introduced in 2024, it allows customizable wallet behavior and simplifies user interactions.

    These features make Ethereum a foundational layer for decentralized finance, digital identity, gaming, and more.

    What are dApps?

    Users can build and run decentralized applications (dApps) on blockchain networks like Ethereum. These applications serve specific functions and operate without centralized control. As of 2025, dApps have expanded across industries including finance, gaming, identity, and social media. They typically share the following features:

    • Open Source: The source code is publicly accessible. Updates require consensus from the community.
    • Decentralized: Data and transaction history are stored on public blockchains, not controlled by any single entity.
    • Incentivized: Users are rewarded with tokens or digital assets for participation and contributions.
    • Protocol-Based: Operate on agreed-upon cryptographic algorithms. Ethereum now uses Proof of Stake (PoS) for consensus.
    • Programmable Accounts: Thanks to Account Abstraction, dApps can offer flexible wallet behavior and enhanced user experience.
    • Scalable Infrastructure: Upgrades like Danksharding and Verkle Trees have improved performance and reduced costs.

    Examples of dApps in 2025 include:

    • Aave: A decentralized lending and borrowing platform.
    • OpenSea: A marketplace for NFTs and digital collectibles.
    • Illuvium: A blockchain-based game with tokenized assets and play-to-earn mechanics.

    Future of Ethereum

    Ethereum’s future is increasingly defined by scalability, usability, and real-world integration. Since its full transition to Proof of Stake in 2022, Ethereum has undergone major upgrades including Danksharding, which significantly boosts transaction throughput, and Verkle Trees, which reduce node storage requirements and improve network efficiency. Account Abstraction, now widely adopted, allows for programmable wallets and more intuitive user experiences, making dApps accessible to mainstream users. Ethereum continues to serve as the backbone for decentralized finance, NFTs, and Web3 infrastructure, with growing adoption in enterprise and government sectors. As of 2025, Ethereum is preparing for further enhancements focused on privacy, modular execution environments, and cross-chain interoperability, positioning itself as a foundational layer for a decentralized internet.

  • Ethereum ($ETH) Merge: What is it and everything you need to know

    Ethereum ($ETH) Merge: What is it and everything you need to know

    As Ethereum is steadily approaching the transition to a Proof-of-Stake mechanism, one notable thing that has changed, aside from further protocol development, has been the change in terminology.

    We have already covered Ethereum 2.0 extensively in one of our ongoing blogs where we go in-depth on everything you need to know about Ethereum’s transition to PoS:

    Let’s take a closer look at the rebranding from Ethereum 2.0 to the Ethereum Merge, as well as go over the most recent developments in Ethereum’s roadmap as of May 2022.

    Check out our latest video- Ethereum Merge: ALL you need to know (including ETHPOW)

    Ethereum Merge: ALL you need to know (including ETHPOW)

    And check out our video- Ethereum Merge: Things you don’t (but need) to know as an investor

    The Ethereum Merge: Why the shift from Eth2.0?

    The term “Eth2.0” was retired in early 2022 to avoid confusion and scams, and to better reflect Ethereum’s evolution—not replacement. The Merge, completed in September 2022, unified Ethereum’s original execution layer with the Beacon Chain’s Proof-of-Stake consensus. By 2025, this rebranding has proven prescient: Ethereum’s roadmap has expanded far beyond the original Eth2.0 vision, with Layer 2 rollups, proto-danksharding, and modular scaling now driving innovation. The shift in terminology helped clarify that Ethereum remains one chain, continuously upgraded—not split or replaced.

    ETH Merge is a huge success!

    On 15th September 2022 at 06:42:42 UTC at block 15537393, the Merge was completed.

    Missed our historical LIVE Merge party? Check it out here!

    Ethereum Merge Party – Watch the Merge live!

    Ethereum Post-Merge: Where Things Stand in 2025

    Since the successful Merge on 15th September 2022, Ethereum has fully transitioned to Proof-of-Stake, eliminating mining and reducing energy consumption by over 99%. The focus has shifted from testing Merge readiness to scaling and optimizing the network. Key milestones since the Merge include:

    • Staking Growth: Over 30 million ETH is now staked, with thousands of validators securing the network.
    • Scalability Upgrades: Proto-danksharding (EIP-4844) was implemented in late 2024, significantly reducing Layer 2 fees and paving the way for full sharding.
    • Layer 2 Expansion: Rollups like Optimism, Arbitrum, and zkSync have seen explosive growth, handling the majority of Ethereum transactions.
    • Institutional Adoption: Ethereum’s energy-efficient design and predictable monetary policy have attracted major financial institutions and enterprise use cases.

    The Merge is no longer a future milestone—it’s the foundation for Ethereum’s next phase: modular scalability, global adoption, and sustainable infrastructure.

    Why the Ethereum Merge Still Matters to Crypto Traders in 2025

    Although the Merge was completed nearly three years ago—on 15th September 2022—it continues to influence Ethereum’s trading dynamics in significant ways. Here’s why it remains relevant to traders today:

    Reduced ETH Supply and Market Scarcity

    • The Merge reduced ETH issuance by approximately 90%. Combined with EIP-1559’s fee-burning mechanism, Ethereum has become deflationary during periods of high network activity.
    • This scarcity has strengthened Ethereum’s position as a store of value, attracting long-term investors and institutional interest.

    Staking Rewards and Yield Opportunities

    • ETH holders can earn staking rewards by locking up their tokens. As of August 2025, staking yields range between 4% to 6%, depending on network conditions.
    • Traders now consider staking returns when evaluating ETH’s opportunity cost relative to other assets.

    Layer 2 Growth and Transaction Efficiency

    • The Merge enabled scalability upgrades such as proto-danksharding (EIP-4844), which significantly lowered Layer 2 transaction fees.
    • A majority of ETH trading now occurs on rollups like Arbitrum, Optimism, and zkSync, offering faster execution and lower costs.

    Environmental Sustainability and Institutional Access

    • Ethereum’s energy consumption dropped by more than 99% post-Merge, making it one of the most environmentally sustainable blockchains.
    • This shift has made ETH more appealing to ESG-conscious investors and funds that previously avoided energy-intensive assets.

    Price Behavior and Market Sentiment

    • ETH’s price has shown resilience, supported by reduced sell pressure, staking lockups, and expanding utility across DeFi and NFTs.
    • Traders monitor staking inflows, validator performance, and Layer 2 activity as key indicators for ETH price trends.

    Since the Ethereum Merge on 15th September 2022, ETH’s price trajectory has been shaped by a mix of protocol-level changes, macroeconomic factors, and evolving market sentiment. Here’s a breakdown of how prices have responded and what traders are watching now:

    Initial Reaction and Short-Term Volatility

    • In the hours following the Merge, ETH saw a modest price increase, briefly peaking above US$1,640 before settling below US$1,600.
    • Traders were cautious, anticipating potential forks or technical disruptions, which kept early momentum subdued.

    Medium-Term Consolidation and Staking Dynamics

    • As staking rewards became more accessible and the supply of ETH decreased due to reduced issuance and fee burning, ETH entered a period of steady accumulation.
    • By mid-2023, ETH had stabilized in the US$1,800–US$2,200 range, supported by growing validator participation and reduced sell pressure.

    Long-Term Growth and Institutional Interest

    • The implementation of proto-danksharding in late 2024 significantly lowered Layer 2 transaction costs, boosting network activity and reinforcing ETH’s utility.
    • By August 2025, ETH is trading above US$3,000, driven by deflationary pressure, staking lockups, and increased adoption across DeFi, NFTs, and enterprise applications.

    Key Price Drivers in 2025

    Environmental Appeal: Ethereum’s energy-efficient design has made it a preferred asset for ESG-focused investors.

    Deflationary Supply: With issuance down and EIP-1559 continuing to burn fees, ETH’s circulating supply has declined, supporting upward price pressure.

    Staking Yield: ETH staking yields remain attractive, encouraging long-term holding and reducing market liquidity.

    Layer 2 Ecosystem: Rollups now handle the majority of Ethereum transactions, improving user experience and expanding use cases.

  • Ethereum 2.0 – Here’s what you NEED to know

    Ethereum 2.0 – Here’s what you NEED to know

    Ethereum has changed a lot since the Ethereum 2.0 upgrade began. Now fully running on Proof-of-Stake, the network is faster, cheaper, and uses way less energy. With sharding and other upgrades complete, Ethereum can handle over 100,000 transactions per second, making it a top choice for apps, games, and finance tools.

    This article explains how Ethereum got here, what each upgrade did, and why it matters. Whether you’re new to crypto or already staking ETH, this guide will help you understand Ethereum’s journey and what’s next.

    What is Ethereum 2.0?

    Ethereum 2.0—now simply called Ethereum—was a major upgrade that transformed the network from Proof-of-Work to Proof-of-Stake. This shift made Ethereum far more energy-efficient and scalable. The upgrade included several key milestones:

    • The Merge (2022): Combined the original Ethereum mainnet with the Beacon Chain, switching the consensus mechanism to Proof-of-Stake.
    • Sharding (Completed 2024): Split the network into multiple shards to boost speed and reduce costs. Ethereum now handles over 100,000 transactions per second.
    • Staking: Users can earn passive income by staking ETH to help secure the network. As of mid-2025, staking yields average around 3.7% APR. Check out our staking guide HERE

    These upgrades have made Ethereum faster, cheaper, and more accessible. Validators no longer need expensive hardware, and anyone can run a node—even from a laptop or phone. Ethereum now powers a massive ecosystem of DeFi apps, NFTs, and Web3 platforms, and continues to lead innovation in blockchain technology.

    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

    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

    Ethereum 2.0—now simply Ethereum—was rolled out in three major phases, each transforming the network’s scalability, security, and sustainability:

    Phase 0: Beacon Chain (Completed December 2020)

    This phase introduced the Proof-of-Stake consensus mechanism via the Beacon Chain. It ran in parallel with the original Ethereum chain and laid the foundation for future upgrades by coordinating validators and generating randomness for staking.

    Phase 1: The Merge (Completed September 2022)

    The Merge combined the Beacon Chain with Ethereum’s mainnet, officially transitioning the network from Proof-of-Work to Proof-of-Stake. This reduced Ethereum’s energy consumption by over 99.9% and eliminated the need for mining.

    Phase 2: Sharding (Completed Q4 2024)

    Sharding split Ethereum’s data processing across multiple chains (“shards”), dramatically increasing throughput and lowering costs. Combined with Layer 2 rollups, Ethereum now handles over 100,000 transactions per second. Validators can run nodes on lightweight devices, boosting decentralization and accessibility.

    Main features of sharding:

    Ethereum’s sharding implementation is now complete, delivering major improvements in scalability and decentralization:

    • Lightweight Node Requirements: Validators no longer need to store the full blockchain. Thanks to data sampling and blob transactions, even mobile devices can run nodes.
    • Greater Security via Decentralization: With over a million active validators, Ethereum is more resilient and censorship-resistant than ever.
    • High Throughput: Combined with Layer 2 rollups, sharding enables over 100,000 transactions per second, significantly reducing gas fees.
    • Efficient Data Distribution: Ethereum uses 64 shards to spread data across the network, minimizing congestion and improving performance.
    • Optimized Rollup Integration: Rollups now directly access shard data, making them faster and cheaper, and enabling new use cases like real-time data feeds and decentralized AI.

    What are layer 2 rollups?

    Layer 2 rollups are scaling solutions that execute transactions off-chain and post compressed data back to Ethereum, reducing congestion and lowering fees. As of 2025, rollups have matured into the backbone of Ethereum’s scalability strategy.

    • Optimistic and ZK Rollups: Both types are widely adopted. ZK rollups, in particular, have gained traction for their speed and security, powering applications in DeFi, gaming, and identity verification.
    • Blob Transactions and Proto-Danksharding: Introduced in the Cancun-Deneb upgrade, blob-carrying transactions allow rollups to post large data payloads efficiently. This has drastically reduced costs and improved throughput.
    • Rollup-Centric Ethereum: Ethereum now functions as a data availability and settlement layer, while most user activity occurs on rollups. This architecture supports over 100,000 transactions per second.
    • Interoperability and Composability: Rollups are increasingly interoperable, allowing seamless asset transfers and smart contract interactions across different Layer 2s.
    • Decentralized Applications at Scale: From social media platforms to real-time multiplayer games, rollups have enabled dApps that were previously impossible on Layer 1 due to cost and latency.

    Learn more: Understanding layer 2 & scaling solutions: Arbitrum, Boba, Optimism, Polygon, Ethereum 2.0

    What is the current state of Ethereum 2.0?

    Ethereum 2.0—now simply referred to as Ethereum—has completed its major transition phases and entered a new era of scalability and decentralization. Here’s a snapshot of its current state:

    • Proof-of-Stake Fully Operational: Since the Merge in September 2022, Ethereum has run entirely on Proof-of-Stake. Validator participation remains high, with over 1 million active validators and a network participation rate consistently above 99%.
    • Sharding Completed: As of late 2024, Ethereum successfully launched 64 shards, dramatically improving data throughput and enabling lightweight node operation. This has made it possible to run validator nodes on consumer-grade devices.
    • Rollup-Centric Architecture: Most user activity now occurs on Layer 2 rollups, which post data back to Ethereum using blob transactions introduced in the Cancun-Deneb upgrade. This architecture supports over 100,000 transactions per second.
    • Post-Merge Upgrades: Ethereum has progressed through the “Surge” (scaling via sharding), and is actively implementing the “Scourge,” “Verge,” “Purge,” and “Splurge”—a series of upgrades focused on censorship resistance, stateless clients, historical data cleanup, and protocol refinement.
    • Staking and Withdrawals: Withdrawals have been enabled since the Shanghai (Shapella) upgrade in April 2023. Staking remains popular, with yields averaging 3.5–5% annually depending on network conditions.
    • EVM Improvements: The Ethereum Virtual Machine has seen multiple enhancements, including support for Verkle trees and EOF (EVM Object Format), improving efficiency and developer experience.

    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

    1. 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.

    2. 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

    3. 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

    4. Generating a validator keypair

      docker run -it -v $HOME/prysm/validator:/data \ gcr.io/prysmaticlabs/prysm/validator:latest \ accounts create –keystore-path=/data

      Complete the steps here to stake the ETH

    5. Starting up the validator client

      docker run -it -v $HOME/prysm/validator:/data –network=”host” \ gcr.io/prysmaticlabs/prysm/validator:latest \ –beacon-rpc-provider=127.0.0.1:4000 \ –keymanager=keystore \ –keymanageropts='{“path”:”/data”,”passphrase”:”changeme”}’

    6. Finish the activation

      Wait (roughly 2 days) to get activated, and then you’re good to go!

    Staking Ethereum on a validator node

    Ethereum now operates fully under Proof-of-Stake, and staking remains a core mechanism for securing the network and earning passive income.

    • Stake Requirement: 32 ETH is required to activate a validator. This stake acts as collateral to ensure honest behavior and network uptime.
    • Rewards: Annual staking yields range from 3.5% to 5%, depending on network conditions and validator performance. Rewards are paid in ETH and accumulate over time.
    • Withdrawals: Since the Shanghai (Shapella) upgrade in April 2023, stakers can withdraw both principal and rewards. Withdrawals are processed in queue and typically take hours to days.
    • Risks: Validators face penalties for downtime or incorrect attestations. Slashing is rare but possible in cases of malicious behavior or prolonged inactivity.
    • Network Health: As of August 2025, over 1 million validators are active, and more than 30 million ETH is staked. Participation rates consistently exceed 99%, ensuring robust security.
    • Liquid Staking Options: For users with less than 32 ETH or those seeking flexibility, platforms like Lido, Rocket Pool, and Coinbase offer tokenized staking (e.g. stETH, rETH) with instant liquidity and pooled validation.

    Ethereum Staking: Deposit contract address release

    The Ethereum staking deposit contract was officially released on November 4, 2020, marking the beginning of Phase 0 and enabling users to stake ETH and become validators. While the original launch required careful navigation through the Ethereum Launchpad, staking has since become more streamlined and widely accessible.

    As of 2025:

    • Deposit Contract Still Active: The original deposit contract remains the gateway for validator activation. Users must still follow the Launchpad process to generate keys and deposit 32 ETH securely.
    • Withdrawals Enabled: Since the Shanghai (Shapella) upgrade in April 2023, stakers can withdraw both rewards and principal. This has made staking more flexible and liquid.
    • Validator Growth: Over 1 million validators are now active, with more than 30 million ETH staked. Participation rates consistently exceed 99%, ensuring strong network security.
    • Liquid Staking Alternatives: Platforms like Lido, Rocket Pool, and Coinbase offer pooled staking and tokenized derivatives (e.g., stETH, rETH), allowing users to stake without the full 32 ETH requirement.
    • Security Reminder: Sending ETH directly to the deposit contract without using the Launchpad will still result in a failed transaction. Proper setup remains essential to avoid loss of funds or penalties.

    Ethereum Staking Update: Yields?

    Ethereum staking yields have stabilized following the full rollout of Proof-of-Stake and the Shanghai upgrade, which enabled withdrawals in April 2023.

    Risk Factors: While slashing remains rare, validators must maintain uptime and correct behavior to avoid penalties. Liquid staking platforms typically abstract these risks for users.

    Current APR: As of August 2025, the average annual percentage return (APR) for staking ETH ranges between 3.5% and 4.2%, depending on validator performance and network activity.

    Yield Trends: Early stakers enjoyed higher returns (up to 16% pre-Merge), but yields have normalized as validator participation increased. Over 30 million ETH is currently staked, with more than 1 million active validators.

    Liquid Staking: Tokenized staking options like stETH (Lido), rETH (Rocket Pool), and cbETH (Coinbase) offer competitive yields and instant liquidity, making them popular among users with less than 32 ETH.

    Rewards Distribution: Staking rewards are paid in ETH and accumulate continuously. Validators earn from proposing blocks, attesting to others, and participating in sync committees.

    You can check the current APR, total ETH staked, and number of validators here.

    Progress of Ethereum 2.0 so far

    Ethereum 2.0—now simply Ethereum—has completed its major upgrade phases and transitioned into a scalable, energy-efficient, and decentralized network. Here’s a summary of its progress:

    • Beacon Chain (Phase 0): Launched in December 2020, introducing Proof-of-Stake and laying the foundation for future upgrades.
    • The Merge (Phase 1): Completed in September 2022, merging the Beacon Chain with Ethereum’s mainnet and eliminating Proof-of-Work. This reduced energy consumption by over 99.9%.
    • Sharding (Phase 2): Rolled out in late 2024, Ethereum now operates with 64 shards, enabling lightweight node operation and dramatically increasing data throughput.
    • Post-Merge Upgrades: Ethereum has entered the “Surge,” “Scourge,” “Verge,” “Purge,” and “Splurge” phases—targeting scalability, censorship resistance, stateless clients, historical data cleanup, and protocol refinement.
    • Network Metrics: As of August 2025, over 30 million ETH is staked across more than 1 million validators. Participation rates remain above 99%, ensuring strong consensus and security.
    • Rollup-Centric Architecture: Most user activity now occurs on Layer 2 rollups, which leverage blob transactions for efficient data posting. Ethereum supports over 100,000 transactions per second.

    What’s next in the development of Ethereum 2.0?

    With the Merge and Sharding now complete, Ethereum has entered the post-2.0 era, focusing on refinement, decentralization, and long-term sustainability.

    Ethereum 2.0 setup and architecture

    The roadmap outlined by Vitalik Buterin continues through five major upgrade phases:

    • The Surge: Completed in late 2024, this phase introduced sharding and significantly boosted scalability. Ethereum now supports over 100,000 transactions per second, primarily through rollups.
    • The Scourge: Currently underway, this phase addresses MEV (Maximal Extractable Value) risks and aims to ensure fair, neutral transaction inclusion. Protocol-level changes are being tested to reduce centralization in block production.
    • The Verge: Focused on stateless clients and Verkle trees, this phase will allow validators to operate without storing full blockchain data. It’s expected to launch in stages through 2026, improving decentralization and node efficiency.
    • The Purge: Aimed at reducing historical data bloat, this phase will simplify node operation by removing unnecessary legacy data. It will also streamline the Ethereum protocol for developers.
    • The Splurge: A collection of smaller upgrades and optimizations, including EVM improvements, fee market refinements, and UX enhancements. These updates are ongoing and released incrementally.

    Updated Ethereum roadmap

    What will happen after ETH 2.0 is launched?

    Ethereum 2.0 is no longer a future milestone—it’s now fully integrated into the Ethereum protocol. The network has transitioned from Proof-of-Work to Proof-of-Stake, implemented sharding, and embraced a rollup-centric architecture. Here’s what has unfolded since the launch:

    • Scalability Achieved: Ethereum now supports over 100,000 transactions per second through a combination of sharding and Layer 2 rollups. This has eliminated congestion and dramatically reduced gas fees.
    • Energy Efficiency: The network consumes over 99.9% less energy than it did under Proof-of-Work, making Ethereum one of the most sustainable major blockchains.
    • Validator Participation: Over 1 million validators are active, securing the network with more than 30 million ETH staked. Lightweight node requirements have enabled broader participation.
    • Rollup Dominance: Most user activity now occurs on Layer 2 platforms like Arbitrum, Optimism, and zkSync. Ethereum Layer 1 serves primarily as a settlement and data availability layer.
    • Reduced Competition from “Ethereum Killers”: With its scalability and efficiency challenges resolved, Ethereum has maintained its dominance in DeFi, NFTs, and Web3 infrastructure. Competing chains have shifted focus to niche use cases or interoperability.
    • Ongoing Upgrades: Ethereum is now progressing through the “Scourge,” “Verge,” “Purge,” and “Splurge” phases, which aim to improve censorship resistance, decentralization, protocol simplicity, and developer experience.

    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?

    No. Ethereum 2.0 was a series of upgrades that merged into the existing Ethereum network. The term is now outdated—Ethereum runs on Proof-of-Stake and sharding, but it’s still the same ETH.

    Is there a new ETH coin?

    No new coin was created. ETH remains the native currency. Beware of scams offering “ETH2” tokens—they don’t exist.

    Can I withdraw staked ETH?

    Yes. Since the Shanghai (Shapella) upgrade in April 2023, both staking rewards and principal can be withdrawn.

    What’s the current staking yield?

    As of August 2025, staking yields range from 3.5% to 4.2% annually, depending on network activity and validator performance.

    Do I need 32 ETH to stake?

    Not necessarily. While 32 ETH is required to run a validator node, liquid staking platforms like Lido, Rocket Pool, and Coinbase allow staking with smaller amounts.

    Is staking risky?

    Staking is generally safe, but validators can be penalized for downtime or malicious behavior. Liquid staking abstracts most of these risks for casual users.

    Will Ethereum gas fees be lower now?

    Yes. With sharding and rollups fully deployed, Ethereum can process over 100,000 transactions per second, significantly reducing gas fees.

    Can I run a validator on a regular device?

    Yes. Thanks to sharding and protocol optimizations, validators can now run on laptops or even mobile devices.

    What happened to Ethereum mining?

    Mining ended with the Merge in September 2022. Ethereum now uses Proof-of-Stake, and mining is no longer part of the protocol.

    Will exchanges or dApps be affected?

    No major disruptions occurred. Most exchanges and dApps transitioned smoothly during the upgrades.

    Is ETH staking taxable?

    Tax implications vary by country. In general, staking rewards are considered income and may be taxable when received.

    What’s next for Ethereum?

    Ethereum is progressing through the Verge, Purge, Scourge, and Splurge phases—focused on decentralization, data cleanup, MEV mitigation, and protocol refinement.

    Further reading

    Ethereum Foundation: https://ethereum.org/en/upgrades

    Pyrsmatic Labs: https://medium.com/prysmatic-labs/how-to-scale-ethereum-sharding-explained-ba2e283b7fce

    Ethereum Wallet holders: https://bitinfocharts.com/comparison/activeaddresses-eth.html

    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.

  • Arbitrum ($ARB) Token Airdrop: Arbitrum Odyssey how to guide

    Arbitrum ($ARB) Token Airdrop: Arbitrum Odyssey how to guide

    Arbitrum will airdrop over 1 billion $ARB tokens to its protocol users on March 23, 2023. The snapshot was taken in February, and at least three criteria must be met to qualify for the airdrop. Find out if you’re eligible and how to claim your Arbitrum token airdrop below.

    Check out our LayerZero Airdrop Guide for another highly anticipated token airdrop.

    Arbitrum ($ARB) Airdrop Step-by-step Guide

    Here’s how you can potentially claim your $ARB tokens faster and buy, sell, or trade your $ARB before everyone else:

    1. Make your own RPC endpoint on Alchemy.
    2. Pre-approve the token contract.
    3. Have sufficient ETH ready.
    4. Know where to trade $ARB.

    See below for more details.

    What is Arbitrum?

    Arbitrum is a layer-2 scaling solution designed to lower network congestion and transaction costs of Ethereum by offloading tons of computation and data storage from the main chain. It does this via the use of optimistic rollup — transactions on Ethereum are bundled up and transferred to a proprietary sidechain on Arbitrum (a secondary blockchain connected to the main chain). The transactions are then processed and sent back to the main chain after validation.

    source: ethereum.org

    What is an Optimistic Rollup?

    The optimistic rollup is the core element of Arbitrum. For those who do not know what an optimistic rollup is, we got you covered with a simple explanation.

    Optimistic rollups assume all transactions as valid, hence an “optimistic” outlook. There is a time period during which users can dispute any suspicious transactions contained in a bundle. If a fraudulent transaction is detected, a fraud proof is executed which basically runs the correct transaction computation using the data on the main chain.

    Since optimistic rollups do not perform any computation by default, it offers massive improvements in scalability. On the downside, potential fraud challenges of optimistic rollups could lead to delays in transactions, since progress comes to a halt until it the dispute is resolved.

    Arbitrum’s Version of Optimistic Rollup

    To provide context, optimistic rollups are compatible with the Ethereum Virtual Machine (EVM) and Solidity, which allow developers to port Ethereum-native smart contracts to rollups or even use existing tooling to create new decentralized applications (DApp). But for Arbitrum, it has its own virtual machine called Arbitrum Virtual Machine (AVM).

    Arbitrum’s AVM greatly improves optimistic rollups because it stores very little data on-chain for optimal scalability. Moreover, to address potential delays due to fraud challenges, the AVM uses pipelining to process multiple disputes, while verification nodes help speed up the process.

    This is called multi-round fraud proofs. Arbitrum uses a fine-combing approach to verify fraud proofs. It focuses on a particular point of disagreement over transaction history. Additionally, layer-2 transactions are not entirely executed on the main chain, rendering gas block limits irrelevant. As a result, this translates to higher network performance.

    Who is the Team behind Arbitrum?

    Arbitrum is developed by Offchain Labs, a New York-based startup committed to building innovative Ethereum scaling solutions. The company originated from the computer science research department of Princeton University, co-founded in 2018 by Harry Kalodner, Steven Goldfeder, and Ed Felten.

    In September 2021, Offchain Labs raised $120 million in a Series B funding round from the likes of Alameda Research, Pantera Capital, Lightspeed Venture Partners, and many other major crypto venture capitals. The team has since then expanded to a global community of developers, academics and operators, with deep experience in cryptography, decentralized systems, and game theory.

    Leading DApps on Arbitrum Ecosystem

    Arbitrum’s layer-2 network allows developers to build and deploy highly scalable smart contracts at low cost, while benefitting from Ethereum’s robust layer-one security. Since its launch last year, the Arbitrum ecosystem has greatly expanded, ranking 6th in all chains total value locked with 129 integrated protocols.

    source: news.cryptorank.io/

    Some of the top decentralized finance (DeFi) protocols include Uniswap, Curve, Aave, Balancer, and SushiSwap. Additionally, Arbitrum is not without its native protocols built on the blockchain which include GMX, Radiant, Dopex, and Vesta Finance.

    $ARB Token

    $ARB will solely function as a governance tool for the Arbitrum protocol, unlike ETH which is used to pay fees on both Ethereum and Arbitrum. The governance process of Arbitrum DAO will be autonomous, allowing votes to directly modify the core code of Arbitrum.

    The total supply will be 10 billion, with the Arbitrum community controlling 56%. The airdrop will distribute 12.75% (i.e. 1.275 billion $ARB) to eligible users on 23rd March 2023. The rest of the community tokens will be allocated to a treasury governed by the Arbitrum DAO, allowing ARB holders to vote on fund disbursement.

    The remaining 44% will be given to Offchain Labs’ investors and employees, who developed Arbitrum. These tokens will be subject to lock-up periods and vesting schedules. Notably, the proportion of ARB reserved for insiders is higher compared to similar projects, such as Optimism, which allocated 36% of its OP tokens to investors and core contributors.

    $ARB Airdrop Eligibility: How to claim Arbitrum $ARB token airdrop

    According to Nansen, 625,143 wallet addresses are eligible for the Arbiturm $ARB token airdrop. You can check on arbitrum.foundation to see if you are eligible. If you are eligible, Arbitrum will directly airdrop to your wallet on 23rd March 2023. There are 6 airdrop criteria, and at least 3 must be met based on a snapshot taken on 6th February 2023 in order to qualify for the airdrop:

    1. Bridge to Arbitrum

      Bridged assets into Arbitrum One or Arbitrum Nova.

    2. Transactions Over Time

      Conduct transactions at least 2 months prior to the snapshot taken in February. The longer the timeframe, the more tokens you will receive.

    3. Transaction Frequency and Interaction

      Conduct more than 4 transactions or interact with more than 4 smart contracts. The higher the number, the more tokens you will receive.

    4. Transaction Value

      Conduct transactions with more than $10,000 in aggregate value. The higher the value, the more tokens you will receive.

    5. Assets Bridged to Arbitrum One

      Deposit more than $10,000 worth of assets to Arbitrum One. The more assets you deposit, the more tokens you will receive.

    6. Activity on Arbitrum Nova

      Conduct more than 3 transactions on Arbitrum Nova. The more transactions are carried out, the more tokens you will receive.

    How to claim Arbitrum ($ARB) token faster?

    Arbitrum has confirmed its airdrop can be claimed on 23rd March 2023 when the Ethereum chain reaches block 16890400. It is very likely that the Arbitrum network will be very congested during that time as users are anxiously waiting to get their tokens to potentially trade on exchanges. However, there are ways to be faster at the Arbitrum airdrop claim, and how to buy, sell or trade your $ARB before anyone else. Note however this carries risks. You may risk ending up being slower than others, lose your gas fees and even your $ARB, so proceed with caution. Here’s how you can potentially claim your $ARB tokens faster and buy, sell, or trade your $ARB before others:

    1. Make your own RPC endpoint on Alchemy.
    2. Pre-approve the token contract.
    3. Have sufficient ETH ready.
    4. Know where to trade $ARB.

    Make your own RPC endpoint on Alchemy

    Here’s how to make your own RPC endpoint on Alchemy:

    1. Sign up for Alchemy here.
    2. Create an app for Arbitrum. Make sure you select “Arbitrum” under “Chain”.
    3. Click “View Key” on the main page. There, you will get an RPC https URL.
    4. Add a network on MetaMask. Go to “Settings”, “Networks”, “Add network” and “Add network manually”. Under “New RPC URL”, enter the RPC https URL from Alchemy. Then under “Chain ID” enter 42161, “ETH” as the Currency Symbol, and “https://arbiscan.io” under Block Explorer.

    Pre-approve the token contract

    To be even faster than everyone else in claiming $ARB, you can pre-approve the Arbitrum token contract on protocols such as 1inch and Uniswap. To do this, go to the $ARB smart contract and click “Write as Proxy”. Then, connect your wallet. Under spender, fill in the address for either Uniswap or 1inch. Finally, fill in the number of $ARB you want to trade with that smart contract. For example, filling in 20000000000000000000000 will mean you are approving 20,000 $ARB to be traded.

    Have sufficient ETH ready

    This is to pay for gas fees when trading $ARB. Note you will have to bridge your ETH to Arbitrum.

    Know where to trade $ARB

    These exchanges have confirmed they will offer trading for $ARB:

    • ByBit (Sign up here!)
    • Binance
    • Bitfinex
    • Kucoin
    • OKX
    • Bitmart
    • Bitfinex
    • Huobi
    • Bitget
    • Bitrue
    • Gate.io
    • MEXC

    Will there be another Arbitrum $ARB token airdrop?

    Arbitrum’s latest Tweet announces a return of the Arbitrum Odessey. The Arbitrum Odessey was a 7 week journey filled with tasks to complete in order to obtain badges. These badges are NFTs which may lead to future rewards.

    The upcoming round of Arbitrum Odyssey will begin on 26th September at 12:00pm EDT.

    Arbitrum Odyssey: How to guide

    The Arbitrum Odyssey is a new round of activites involving the Arbitrum ecosystem and a chance to collect custom badges starting on 26th September at 12:00pm EDT. There is speculation that participating in this 7-week journey may result in a potential airdrop as a reward. Here’s our ultimate how to guide to completing the tasks on the Arbitrum Odyssey.

    Week 1- Enter the Odyssey

    Go to the Arbitrum Galxe Page and complete any of the following tasks in their list. Then, mint your Enter The Odyssey NFT.

    Week 2- Signs of Life

    Here’s our how to guide for completing the tasks on week 2 of the Abritrum Odyssey

    • Complete tasks on Tofu NFT Galxe page. This includes following their Twitter and selling/buying an NFT on their platform.
    • To sell/buy an NFT on Tofu NFT, go to https://tofunft.com/arbi and connect your wallet. Scroll down to “Discover” and apply the following search filters: Type- Fixed price, Sort- Price: Low to High. Buy the cheapest NFT or list some NFTs for sale.
    • Mint your Signs of Life NFT.
    • Complete Pulsar in the Distance task on Galxe. Connect your wallet to Abroad Exchange. Deposit funds by clicking on the top right-hand corner and “Deposit”. Then, make a perpetual trade on Abroad Exchange. Be careful when trading because you may be at risk of liquidation, and you will be using real funds! Mint your Pulsar in the Distance NFT.

    Week 3- Pulsar in the Distance

    Here’s our how to guide for completing the tasks on week 3 of the Abritrum Odyssey

    Go to Abroad Exchange and deposit funds on the exchange. Then, make a perpetual trade. Note that you will be using actual funds for this. Finally, return to their Galxe page and mint your NFT.

    Arbitrum Airdrop Review

    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: Arbitrum will airdrop $ARB to eligible users on 23rd March 2023.

    Airdropped Token Allocation: 1.275 billion $ARB (12.75% of the total token supply) will be distributed in this airdrop.

    Airdrop Difficulty: The criteria listed are fairly easy to complete.

    Token Utility: The token will solely function as a governance tool for the Arbitrum protocol.

    Token Lockup: 44% of the tokens allocated to the team and investors are subject to a 4-year lockup.

    Frequently Asked Questions (FAQs)

    What is Arbitrum?

    Arbitrum is a layer-2 scaling solution. It aims to reduce Ethereum’s network congestion and transaction costs. Arbitrum does this by offloading computation and data storage from the main chain.

    When is the Arbitrum token launch?

    The Arbitrum token was launched on 23rd March 2023.

    How do I claim Arbitrum ($ARB) tokens?

    Arbitrum will airdrop $ARB tokens directly to your eligible wallet address via MetaMask, Trust Wallet, Coinbase Wallet, Brave or Ledger.

    How to be eligible for the Arbitrum ($ARB) airdrop?

    There are 6 airdrop criteria, and you must meet at least 3 to qualify for the airdrop: (1) bridged to Arbitrum One or Arbitrum Nova, (2) conduct transactions at least two months before the snapshot in February, (3) conduct at least 4 transactions or interact with at least 4 smart contracts, (4) conduct transactions with at least $10,000 in aggregate value, (5) deposit at least $10,000 on Arbitrum One, (6) conduct at least 3 transactions on Arbitrum Nova.

    How do I check if I am eligible for the Arbitrum ($ARB) airdrop?

    To check your eligibility, go to arbitrum.foundation and connect your wallet. Then click “Check eligibility”.

    When can I claim the Arbitrum $ARB token airdrop?

    the $ARB token airdrop can be claimed on 23rd March 2023 when the Ethereum chain reaches block 16890400

    What is the fastest way to claim the Arbitrum $ARB token airdrop?

    Here’s how you can potentially claim your $ARB tokens faster and buy, sell, or trade your $ARB before others:
    1. Make your own RPC endpoint on Alchemy.
    2. Pre-approve the contract.
    3. Have sufficient ETH ready.
    4. Know where to trade $ARB.

    Note however this carries risks. You may risk ending up being slower than others, lose your gas fees and even your $ARB, so proceed with caution.

    Where can I buy Arbitrum token?

    You can buy, sell or trade the Arbitrum token on following cryptocurrency exchanges: ByBit (Sign up here!), Binance, Bitfinex, Kucoin, OKX, Bitmart, Bitfinex, Huobi, Bitget, Bitrue, Gate.io, MEXC.

    What is the Arbitrum token price?

    As of 24th March 2023, Arbitrum token price is US$1.40. Its all-time high price was US$8.67, and an all-time low of US$1.11.

    What is the Arbitrum token contract?

    The Arbitrum token contract is: 0x912ce59144191c1204e64559fe8253a0e49e6548

  • ConsenSys Free NFT Airdrop Guide: CLAIM NOW!

    ConsenSys Free NFT Airdrop Guide: CLAIM NOW!

    ConsenSys is celebrating the upcoming Ethereum Shanghai/Capella upgrade with the launch of a new NFT collection called “Ethereum, Evolved: Shanghai”. The NFT claim period begins on April 12, 2023, at 9pm EST and lasts for 72 hours. If you have a MetaMask wallet, you can mint the open edition for free (excluding gas fee). So act fast to claim your piece of Web3 history!

    Learn more about the Ethereum Shanghai (Shapella) upgrade and the road toward Ethereum 2.0 here.

    ConsenSys Free NFT Claim Step-by-Step Guide

    Here’s how to claim the free ConsenSys NFT:

    1. Visit the “Ethereum, Evolved: Shanghai” NFT Minting Page
    2. Connect Your MetaMask Wallet
    3. Mint and Claim NFT
    4. View NFT on MetaMask Portfolio

    See below for more in-depth details!

    About ConsenSys

    ConsenSys is a leading blockchain technology company that focuses primarily on the Ethereum ecosystem. Joseph Lubin, an Ethereum co-founder, established it in 2014. The company aims to drive decentralized applications (dApps) and infrastructure adoption on Ethereum. It provides tools, products, and services like MetaMask and Infura to help developers, businesses, and individuals build next-gen applications and access decentralized web technologies.

    ConsenSys is also a founding member of the Enterprise Ethereum Alliance (EEA). This global organization consists of various businesses, startups, research institutions, and Ethereum experts. Launched in 2017, the EEA’s primary goal is to develop open, blockchain-based standards and promote Ethereum adoption in enterprises. Through member collaboration, the EEA seeks to create best practices, architectural guidelines, and industry-specific use cases. This approach helps integrate Ethereum into the business world more effectively and securely.

    About the Ethereum Shanghai/Capella Upgrade

    The Shanghai/Capella upgrade is a technological milestone in the history of blockchain that will enable users to withdraw staked Ethereum assets. The upgrade is expected to have significant improvements for stakers, the Ethereum staking ecosystem, and DeFi, reducing liquidity risk and inspiring confidence in liquid staking protocols.

    The upgrade will also enable Staking withdrawals, increasing the portability of stake and driving further innovation in the staking sector. Stakers will be able to evaluate different offerings based on factors such as rewards maximization, validator performance, simplicity of the user experience, and fees, and will play a critical role in preserving Ethereum’s values.

    Our previous article, ‘Ethereum Shanghai Upgrade: Liquid Staking Derivatives are Coming,’ delves into the subject in depth.

    How to Claim the Free ConsenSys NFT Airdrop?

    You can claim your free NFT at the ConsenSys minting page. The claim window will be open for 72 hours starting from 9pm EST on April 12, 2023. Here’s a step-by-step guide:

    1. Visit the “Ethereum, Evolved: Shanghai” NFT Minting Page

      Go to the “Ethereum, Evolved: Shanghai” NFT minting page, which is powered by ConsenSys.

    2. Connect Your MetaMask Wallet

      In order to mint the NFT, you will need to connect your MetaMask wallet. The network is on the Ethereum mainnet.

    3. Mint and Claim NFT

      Click the “Claim Your NFT” button, confirm your MetaMask address, and you will have minted yourself an NFT! The mint itself is free, but you will need some ETH to cover gas fees. You can also choose to mint again, but be careful of the gas fee.

      Keep in mind that the Ethereum network may get busier at times, as more people are rushing to mint the NFT. Gas fees can get higher when the network is congested.

    4. View NFT on MetaMask Portfolio

      Once you claimed your NFT, you can see it in your MetaMask Portfolio under the NFTs tab. You can also trade it on OpenSea.

  • Visa Auto-Payment on Ethereum: The Complete guide

    Visa Auto-Payment on Ethereum: The Complete guide

    Visa on Ethereum Blockchain

    Visa payment is proposing to use Ethereum and Smart Contracts as an Auto-payments platform in order to increase efficiency and speed. The company published a technical paper detailing its plan to develop an automatic payment system for self-custodial wallets on the Ethereum network. This would enable Ethereum users to schedule auto-payments from their own self-custodial wallets, making online bill payments possible via blockchains. This comes at a very critical time as Ethereum is currently in a series of network upgrades, dubbed “Ethereum 2.0“, that will drastically increase its network efficiency and capacity.

    Visa is also innovating using Ethereum’s account abstraction — combining Ethereum’s user accounts and smart contracts into one account type which allows smart contract functions including pre-scheduled executions for recurring payments. This not only progresses blockchain technology but also brings real-world applications for the general public.

    Limited Payment Options on Blockchain Networks

    Existing blockchain infrastructures do not have the core functionality for auto-payments. In order to send funds to another address, all crypto users must generate a cryptographic signature via their private key. This is an example of push payments, where a payment transaction is manually triggered by the payer. It requires time and attention from the payer.

    On the other hand, there is pull payments, where a payment transaction is triggered by the payee. Automatic online bill payments are an example of this. Most of our recurring payments today are done directly on mobile banking applications or charged on our credit/debit cards. It is very convenient as users do not have to manually settle bills every month.

    Large blockchain networks such as Bitcoin and Ethereum support push payments but do not natively support pull payments. Additionally, users might be unwilling to hand over their private keys to a third-party custodian for monthly bill payments. Therefore, Visa has found a solution to enable pull payments on Ethereum, giving users full control over their scheduled payments.

    Smart Contract Auto-Payments

    Visa leverages the concept of Ethereum’s account abstraction to provide self-custodial wallets with automatic recurring payment capability. Instead of hard-coding validity conditions into the Ethereum protocol that applies to all transactions, validity conditions can be programmed in a customizable way into a smart contract on a per-account basis. This means that users would be able to create a whitelist of pre-approved auto-payments on a “delegable account.” This would not require the owner’s signature every time a payment is made.

    Furthermore, Visa also believes account abstraction has other real-world applications beyond just recurring payment such as account recovery services, multi-owner accounts or even public accounts where anyone could make a transaction. But the technology is still nascent and a lot of research needs to be done around fundamental aspects important for digital payments such as security and scalability, which are crucial for crypto adoption.

    Other payment competitors

    As one of the world’s largest payment networks, Visa is actively getting involved in the crypto ecosystem, looking for ways to expand their capabilities within blockchain payments. This could be a huge step towards mass adoption as traditional financial leaders are seeing the potential of crypto in the long-term future of digital payments.

    In fact, more and more global financial services are getting involved in the crypto ecosystem. Last week, PayPal is partnering with MetaMask to allow users to purchase ETH directly in their wallet via PayPal. On another note, Cash App, the number one finance app in the App Store, has also added support for transactions via the Bitcoin Lightning Network.

    FAQ

    What is Visa proposing?

    Visa is proposing a technical paper detailing their plan to develop an automatic payment system for self-custodial wallets on the Ethereum network. This would enable Ethereum users to schedule auto-payments from their own self-custodial wallets, making online bill payments possible via blockchains.

    How does Visa’s solution work?

    Visa leverages the concept of Ethereum’s account abstraction to provide self-custodial wallets with automatic recurring payment capability. Instead of hard-coding validity conditions into the Ethereum protocol that applies to all transactions, validity conditions can be programmed in a customizable way into a smart contract on a per-account basis. This means that users would be able to create a whitelist of pre-approved auto-payments on a “delegable account.”

    What are the benefits of Visa’s solution?

    Visa’s solution would enable pull payments on Ethereum, giving users full control over their scheduled payments. It also has other real-world applications beyond just recurring payment such as account recovery services, multi-owner accounts or even public accounts where anyone could make a transaction.

    What other companies are getting involved in the crypto ecosystem?

    PayPal is partnering with MetaMask to allow users to purchase ETH directly in their wallet via PayPal. Cash App, the number one finance app in the App Store, has also added support for transactions via the Bitcoin Lightning Network.

    What is the potential impact of Visa’s solution?

    Visa’s solution could be a huge step towards mass adoption as traditional financial leaders are seeing the potential of crypto in the long-term future of digital payments. It could also open up more real-world applications for the general public.

  • Ethereum Censorship Explained: Your Stablecoins Can Be Frozen Without Warning

    Ethereum Censorship Explained: Your Stablecoins Can Be Frozen Without Warning

    If you hold stablecoins on Ethereum or other EVM platforms, you must be aware of this smart contract feature…

    Token Issuers on Ethereum Can Freeze Your Funds Without Notice

    In order to issue tokens on EVM platforms including Ethereum and Polygon, the first step is deploying a smart contract, which is then used for transferring tokens. However, the token issuer can define support for transaction censorship and token freezing in the contract. This is how Circle, the issuer of USDC, froze 75,000 USDC in user funds with ties to Tornado Cash, in compliance with U.S. sanctions.

    Not many users are fully aware of this feature. This can be compared to how traditional banks have the authority to freeze your funds without notice. If the stablecoin ecosystem depends on a centralized entity for issuing tokens, it could prove to be risky for all crypto users.

    USDT and USDC — Regulatory Compliant Stablecoins

    Paxos and Circle, the issuer of USDT and USDC respectively, are required to comply with regulators in order to be allowed to tokenize US dollars on blockchain platforms. One of the major regulators is the Office of Foreign Assets Control (OFAC), who not just sanctioned Tornado Cash, but also oversees Ethereum block validations.

    It is important to note that regulations for the crypto industry is not necessarily bad. They protect the interests of investors and prevent fraudulent activities. However, this is in conflict with the basic principles of decentralization, especially when user funds are on the line.

    How are Transactions Censored on Ethereum?

    Although a deployed smart contract can never be stopped or otherwise manipulated by a third party, token issuers, however, can write whatever they want in smart contracts, including censorship features. Here’s how:

    In order to mint fungible tokens on Ethereum, developers must follow the ERC token standards including the ERC-20 (token), ERC-721 (NFT) or ERC-1155 (multi-token). These standards define a common list of rules that EVM tokens should adhere to. A customized and deployed smart contract is then used each time tokens move from address to address. However, a smart contract can define any behavior that the EVM will allow, which includes the ability to censor transactions based on a blacklist or freezing an account. As a result, any Ethereum user may lose the ability to spend or use the tokens in any way. This is what the smart contract for USDT looks like:

    Source: cexplorer.io

    As shown in the image above, Paxos has the power to blacklist token owner accounts and burn their funds. Of course, one could argue that this is for our safety, freezing the account of someone who has been involved in criminal activity. After all, the blockchain industry should not be a way for criminals to circumvent the law. But herein lies the dilemma: how is decentralized finance (DeFi) different from traditional finance if we still have to trust the system?

    Key Takeaway

    It is true that certain censorship features in place help protect investors’ interest, but the blockchain industry is meant to be different from the traditional financial world. Take the Tornado Cash incident for example, one of the developers was arrested for simply writing code, and several users who used Tornado Cash without malicious intention ended up having their funds frozen.

    If we blindly accept the rules of the existing system, we will not be able to create anything innovative. It is not true self-custody if a third party can control the tokens you have in your own wallet. Nevertheless, the blockchain industry is still in its infancy, and if we are being pragmatic, a common ground must be reached between crypto users and regulators. For DeFi to move forward, we can only construct a system that remains decentralized and that regulators have no objections to.

  • The Flippening: Will Ethereum Overtake Bitcoin in 2023?

    The Flippening: Will Ethereum Overtake Bitcoin in 2023?

    The Flippening Narrative: Bitcoin vs Ethereum

    The concept of the “Flippening” has been increasingly gaining traction in the crypto space. It refers to the hypothetical moment when Ethereum (ETH) surpasses Bitcoin (BTC) as the most valuable cryptocurrency by market capitalization. The Flippening is important because it would signify a major shift in the overall direction of the crypto landscape, signalling a change in investor sentiment and adoption patterns.

    https://www.youtube.com/watch?v=0lQ8bz9QRBo

    While the Flippening is not set in stone, there are compelling data that indicate it is coming, and sooner than you think… Here’s why:

    The Case for Bitcoin

    Being the world’s first cryptocurrency, Bitcoin has maintained its throne on the crypto market since its genesis block in 2009. It is often considered as the safest digital store of value by investors, with its limited supply structure similar to the scarcity of gold, hence its nickname “digital gold.” As such, Bitcoin is usually the primary choice of cryptocurrency for financial institutions looking to get involved. As far as mainstream adoption goes, Bitcoin has led the way so far.

    However, Bitcoin’s Proof-of-Work (PoW) consensus model is highly energy-intensive, sparking criticisms of the network’s impact on the environment. Additionally, the usage of Bitcoin is only limited to exchanging and storing value. This is where Ethereum has much more to offer.

    The Case for Ethereum

    As the second most valuable cryptocurrency, Ethereum is designed to be used as the foundation of a decentralized, blockchain-based internet — an idea that is become known as Web3. Apart from exchanging and storing value, Ethereum introduced smart contract functionalities that allows developers to do all kinds of innovative and creative things on the network. This brought about a proliferation of financial products that have enabled a much broader range of investors.

    Ethereum earned its nickname “digital oil” because it is a utility-based asset like oil, fuel or gas, and its value is largely dictated by supply and demand mechanisms. Similar to how the world’s global supply chain is fueled by crude oil, Ethereum lays at the heart of the Decentralized Finance (DeFi) space as well as GameFi and Non-Fungible Token (NFT) market. And as the Web3 landscape progresses, demand will increase as more and more people are recognizing the potential of a decentralized internet. It is only a matter of time when Web2 evolves to Web3, and Ethereum is at the centre of that.

    Do “Ethereum Killers” Hinder the Flippening?

    It is worth noting that Ethereum faces competition from other prominent layer-1 blockchains such as Aptos, Cardano, Solana, BNB Chain, Polkadot, and Avalanche. There is a trending “Ethereum Killer” narrative in which user adoption will be distributed amongst these blockchains instead of focusing on Ethereum only. However, most of these blockchains in fact depend on Ethereum, as one way or another they are associated with the network’s smart contract. As shown in the image below by Cryptowatch, all of the top layer-1 blockchains are closely correlated with Ethereum’s price action.

    Comparing Market Share between Bitcoin and Ethereum

    As of 11th January 2023, Ethereum’s market share increased by 3% among global crypto assets, signalling its dominance on the rise. According to Coinmarketcap, Ethereum’s market dominance is at 19%, valued at around $856 billion. On another note, Coingecko’s metrics were slightly different, indicating Ethereum’s dominance at 18.3%. But both aggregation websites show that Bitcoin’s market dominance is decreasing, from 40% to 38%.

    It is unclear whether this trend will continue, but according to data sourced from Blockchain Center, the Flippening has been on an uptrend since July 2021. And we are nearly halfway for it to happen. It is also worth noting that Ethereum came closest to the Flippening in 2017, when Bitcoin’s market dominance’s dropped by 40.6% and Ethereum took over 32% of the market amidst the situation.

    In reference to the data provided by Blockchain Center, there are also other metrics apart from market cap that determines the Flippening. As of now, Bitcoin is still by far superior in trading volume, which is a crucial metric for adoption usage. However, Ethereum has Bitcoin beat in active addresses, transaction count and volume, and total USD transaction fees.

    Outperformance of Ethereum will be primarily driven by the strength of its post-Merge fundamentals. The upcoming Shanghai Upgrade will significantly reduce the risk and opportunity cost of staking ETH, which is likely to attract participation from more crypto users.

    Key Takeaway

    Despite Ethereum’s increasing adoption and market dominance, Bitcoin still reigns supreme in the crypto space. In fact, Bitcoin saw significant adoption in 2021-2022 from retail and institutional investors, public companies, and even countries. As of now, El Savador and the Central African Republic (CAR) have adopted Bitcoin as a legal currency. This is a monumental step towards mainstream adoption.

    But that is not to say the Flippening will never happen — it is certainly a possibility. After all, both Bitcoin and Ethereum have different visions. Bitcoin aims to become the global reserve currency, whereas Ethereum aims to become the infrastructure of a global digital economy. The Technology Acceptance Model (TAM) applies to both assets, but it all comes down to supply and demand mechanisms. If demand in digital money is higher, then Bitcoin dominates. But if demand in utility-based asset in building out a decentralized ecosystem is higher, then Ethereum is generally favored.

  • ERC 1155 Defined: What are ERC-1155 tokens?

    ERC 1155 Defined: What are ERC-1155 tokens?

    ERC-1155 is a digital token standard created by Enjin that can used to create both fungible (currencies) and non-fungible (digital cards, pets and in-game skins) assets on the Ethereum Network. By using the Ethereum network, ERC-1155 tokens are secure, tradable and immune to hacking. To find out more about the specifications of the ERC-1155 standard, check out EIP 1155.

    ERC-1155 a new way of creating tokens that allow for more efficient trades and bundling of transactions – thus saving costs. This token standard allows for the creation of both utility tokens (such as $BNB or $BAT) and also Non-Fungible Tokens like CryptoKitties.

    For more information about the creators of ERC-1155, check out our Enjin Coin Guide.

    ERC-1155 includes optimizations that allow for more efficient and safer transactions. Transactions could be bundled together – thus reducing the cost of transferring tokens. ERC-1155 builds on previous work such as ERC-20 (utility tokens) and ERC-721 (rare one-time collectibles).

    Summary

    • ERC-1155 tokens were developed by Enjin.
    • It is a way of creating both fungible (currencies) and non-fungible (digital cards, pets and in-game skins) assets.
    • They can be used to represent assets or items across Enjin’s ecosystem of blockchain games. So one asset can be used in multiple games.
    Most Expensive ERC-1155 Assets in Existence. These are traded on Enjin’s marketplace

    What are Fungible vs Non-Fungible vs Semi-Fungible Tokens?

    Fungible tokens: ERC-1155 can be used for the creation of fungible tokens- utility coins that act as currency for various platforms. The advantage of ERC-1155 is that it allows the creation of many different tokens under the same contract (with ERC-20, a new contract needs to be deployed for every token). ERC-1155 is more suitable for multi-token economics, for example if a project has one token is designated as a security token (STO) and another Utility token.

    Non-Fungible Tokens (NFTs): NFTs can take the from of digital collectible cats (such as crypto kitties) or video game weapons. What sets NFTs apart is that each token is unique.

    Every Cryptokitty is unique – they cannot be exchange with each other (ie non-fungible)

    For example, every cryptokitty is unique with different stripes and patterns. This means that cryptokitties are not “fungible”, and cannot be replaced with one another (imagine if someone swapped your pet cat with another – you’ll notice the difference immediately). When it comes to cryptocurrencies, this property of being unique and not swap-able is called “non-fungible“.

    Non-Fungible Tokens Explained

    With ERC-1155, NFTs hold unique metadata which can be modified with time. For example, this metadata can hold information about the lineage of a cryptokitty.

    For more information about the creators of ERC-1155, check out our Enjin Coin Guide.

    An Amazon Gift card could be a “semi-fungible” token

    Semi-fungible tokens: This a new type of token that could “seat a concert” or a “$50 dollar Walmart coupon”. In the case of a Walmart coupon, each token is fungible (same as each other) until the token is redeemed or used in store. Once a coupon is redeemed, it no longer holds value and hence shouldn’t be traded as a normal token. In this example, the coupon is “fungible” until it is redeemed (“non-fungible”), hence the name semi-fungible token.

    Superior Design

    The superior design of ERC-1155 Crypto Items allows for a swap of any amount of tokens in only 2 simple steps (source: EnjinCoin Blog)

    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.

  • YFI Yield Farming with yEarn Pool

    YFI Yield Farming with yEarn Pool

    Yield Farming is a popular method for cryptocurrency owners to gain passive income. It involves taking advantage of various incentives rewards for locking-up (aka staking) different cryptocurrencies. This article focuses on yield farming for the $YFI token which has become the highest performing yield farming pool.

    Check out our video on how to potentially earn 600% returns through YFI Yield Farming!

    The yEarn project has launched its own governance token – $YFI – this week, sending the Decentralized Finance (DeFi) Yield Farming scene into a frenzy. As of this article, staking stable coins (USDT, USDC, DAI, or TUSD) into the Y pool will yield an astronomical 896% Annual Percentage Yield (APY). This is due to the incentive token $YFI being distributed to staked token holders, making this the single best yield farming pool right now. This has sparked a huge amount of interest in both searches for the $YFI governance token (trending right now on coingecko). Since the token launch, more than $60 Million of new capital has been deposited into the Y pool. Calculate yield using the community made yieldfarming tool.

    WARNING: Yield farming involves a high amount of risk due to the experimental nature of the Ethereum network with potentially undiscovered critical vulnerabilities. Never stake/farm more than you can afford to lose. This is not Financial Advice.

    What is the yEarn (iEarn) Pool

    The iEarn “Y” pool is a yield aggregator – it automatically invests its capital into different DeFi projects – selecting those with the highest yield and return on investment. As a DeFi protocol, a smart contract keeps the invested funds – which makes the project non-custodial. The pool itself is comprised of 4 different stable coins – USDT, USDC, DAI and TUSD – with a total of over $103 Million USD in currency reserves (Assets Under Management – AUM). These reserves are then lent out to different protocols that offer the best rates of return, including Compound, Aave, and dYdX. yPools are considered riskier than other DeFi products such as Compound because lend capital out to a series of protocols – which themselves could be vulnerable to critical vulnerabilities.

    How to Earn the YFI Token

    There are two pools that reward the YFI token for staking. The first and easiest pool to access is the Y Pool on Curve.Fi. This pool is a collection of stable coins that are automatically invested in different lending protocols. This type of pool is usually considered a higher risk due to possible vulnerabilities not just with its own smart contract, but with other smart contracts too.

    How to to earn YFI tokens

    Unfortunately “Yield Farming” for the YFI token has ended. When YFI first launched, all 30,000 tokens were distributed to stakers on the https://ygov.finance/staking platform. Although initially there were plans to distribute more tokens, attempts to come out with a plan to do so have all been voted down in the Y governance. This means it’s unlikely that new $YFI tokens will be distributed in the future. Other tokens such as YFII and YFV still have token distribution for yield farmers.

    What is YFI token

    YFI is the governance token for yEarn (previously known as iEarn). Tokenholders are entitled to vote on upcoming governance decisions for the network – such as potentially stopping all-new distribution of the token. Creator of YFI, Andre Cronje (@AndreCronjeTech) has stated that the token has no intrinsic value.

    “We have released YFI, a completely valueless 0 supply token. We re-iterate, it has 0 financial value”

    Andre Cronje

    This being said, the current wave hype wave and token dynamics have driven up the value of the token. The token follows the “Governance” model where it’s value comes from voting on where the protocol will go next. On top of this, the incentivized Balancer pool (YFI 2%, DAI 98%) requires the staking of $YFI, which locks up further supply. Simply put, DeFi farmers are locking up YFI and DAI in order to receive BPT tokens which could be staked on ygov.finance to gain an additional $YFI. This type of cyclic farming create pseudo ponzinomics and could lead to potentially disastrous results.

    Balancer Warning & new coin minting risk

    One of risks that was mitigated by the team was with token issuance. Currently there is a max cap of only 30,000 YFI tokens. Earlier this week it was discovered that there was a master key which permitted YFI developer Andre Cronje to mint new coins and potentially flood the market with new coins. If he did this, it would of been possible for him to take the entirety of Pool#2 and Pool#3 on Balancer, with a total of more than $150 Million USD. Luckily this did not happen, as he quickly created a multisignature address which requires 6/9 key holders to agree to minting new tokens. The purpose of this is to remove single party risk as 6 of the 9 keyholders are required to agree to create new coins. On top of this, even if they do agree, the community will have 3 days notice before anything happens.

    Overall the long term objective of YFI is to leave control of the total supply of YFI and distribution up to the community to decide. The voting aspect of YFI will allow governance token stakers to decide who to do with the platform.

    YFI distribution stop

    Distribution of $YFI tokens will temporarily stop as new contracts are being prepared. Times for the pools stopping are as follows:

    Resources:

    yEarn documentation – http://docs.yearn.finance
    yGovernance and staking – https://ygov.finance
    Pool Information / Calculator: https://yieldfarming.info/
    Curve Guide on Pools – https://guides.curve.fi/how-to-choose-the-right-curve-pool-for-you/
    Coindesk Report: https://www.coindesk.com/troll-token-why-defi-yield-farmers-are-now-all-about-yfi

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    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.