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Ethereum (ETH) Scaling Solution and Some Recent Updates

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Ethereum (ETH)
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Sharding Technology: Scaling Solution for Ethereum

It is well known that the Ethereum (ETH) blockchain presently can complete at the most 25 transactions per second. All the nodes present on the Ethereum network currently contribute to the consensus system that leads to completion of one transaction. This mechanism makes the process very intensive and non-scalable which means increased time to confirm one transaction. Increase in the number of nodes is inversely proportional to the scalability of the blockchain. This is a serious issue that is being resolved by the developers of Ethereum.

VitalikButerin’s explanation of sharding on Twitter ran like this, “Imagine that Ethereum has been split into thousands of islands. Each island can do its own thing. Each of the islands has its own unique features and everyone belonging on that island i.e., the accounts, can interact with each other and they can freely indulge in all its features. If they want to contact other islands, they will have to use some sort of protocol.”

The developers are currently working on implementing sharding technology into the system. Sharding technology will basically split the network into smaller parts (shards) and each of them will contain a section of the transaction data. By implementing sharding technology, the Ethereum community plans to break down the number of nodes into sections such that the total number of nodes present in the network do not need to give consensus to confirm one transaction. This will hopefully solve the scaling issues as well as increase the number of transactions completed per second. In case a specific node needs data that is not stored in its own block, it will be able to communicate with other nodes to find the information. This process can also be referred as cross-shard communication. Sharding technology is also expected to reduce the overall node size drastically.

The Proof of Work mechanism that is currently utilized by the Ethereum network has a 51% risk factor without the sharding technique. Therefore, it is essential to use the Power of stake mechanism based blockchain to make the best out of sharding technology. The combination will create obstacles in the path of the potential in deciding which shard to choose. This will have an immediate effect on the security risk that a PoW mechanism inherently has.

Commission Free Ethereum Trading with Robinhood

Robinhood had entered the cryptocurrency zone this January and is rapidly gaining popularity as a brokerage service. Robinhood has recently announced in the second quarter of 2018 that they will also offer their services in Michigan. The more welcoming news is that Robinhood will not take any commission for Bitcoin and Ethereum trading. However, the commission-free trading is currently limited to the residents of Michigan, California, Missouri, Massachusetts, and Montana.

As has been observed in the second half of 2017, the price of most of the cryptocurrencies had experienced a surge. However, the first quarter of 2018 has largely seen a bearish trend. Ethereum and some major cryptocurrencies have been “steadily” gaining their feet back since April. However, at the moment the market price of Ethereum (ETH) continues to show volatility. At the time of writing, according to coinmarketcap.com, the price of Ethereum (ETH) shows $690.06 USD approximately. The market cap shows nearly $68,638,726,920 USD. (As of 16th May 2018) The commission-free trading of ETH announcement by Robinhood is most likely to increase the trade volume. Currently, the app allows the users to only use Bitcoin and Ether for buying and selling.

CryptoFacilities Launches ETH Futures

The accommodating Ethereum network has made many investors pick up the ETH digital asset. CryptoFacilities, based in the UK, launched ETH futures on 11th May 2018. Prior to this, the British start-up had launched Bitcoin and Ripple futures. Till now, only ETH derivatives were popular and are available on NASDAQ Nordic. It is expected that CryptoFacilities will pave the way for a greater adoption of ETH futures. According to the CEO and founder of CryptoFacilities, TimoSchlaefer, Ethereum will see new developments with this launch.

“The Ether Reference Rate and Real-Time Index are designed to meet the evolving needs of this marketplace. Providing price transparency and a credible price reference source is a key development for users of Ethereum.”

CME’s Tim McCourt

Followed by the launch of Ethereum Futures, Chicago Mercantile Exchange & Chicago Board of Trade (CME Group Inc) partnered up with CryptoFacilities to list the price of Ether in real-time dollars. Bitstamp and Kraken will help in determining the CME CF reference rate. According to Tim McCourt, “The Ether Reference Rate and Real-Time Index are designed to meet the evolving needs of this marketplace.” This will surely up the competition between Bitcoin and Ethereum and also bring in many new things into the Ethereum network.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

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Aluna.Social
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When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve,…

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CoinFlip Scores Big with BRD Wallet Partnership

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CoinFlip
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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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