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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

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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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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