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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Reasons Why You Are Much Safer When Crypto Trading on Dexes
While many cryptocurrencies aim to bring the change to the world by bringing full decentralization, one aspect of the crypto space still remains mostly centralized, and that is the way they are exchanged. Most crypto exchanges are centralized companies, where traders and investors need to deposit their coins for safekeeping. This is a risky way to handle the funds, as exchanges remain susceptible to hacks and theft, as many realized recently, after the hack of the world’s largest exchange by trading volume, Binance.
During the hack, around 7,000 BTC (over $40 million) was taken, and sent to multiple wallets, never to be seen again — for now, at least. The hack also came as quite a shock, as Binance was known for its efficiency, security, and high levels of confidence. It also made people realize that their coins are not really theirs if they need to rely on third parties, such as exchanges, to keep them safe. As a result, many are now turning away from centralized exchanges, and are heading towards decentralized ones — also known as DEXes.
Here are some reasons why you might want to consider doing the same.
1. True ownership of your coins
The crypto community has a saying: “not your keys, not your coins.” The saying is now more relevant than ever, but it does not apply on DEXes. Decentralized exchanges…
Crypto Billionaire Predicts Massive Price Growth by 2021
Crypto prices are once again going up, and Bitcoin has just passed a major resistance level at $6,000. With a situation like that, it is not surprising that everyone in the crypto community is looking forward to the future, wondering what to expect in years to come. Many experts have already given their predictions, some more optimistic than others, but almost all bullish.
Crypto billionaire Mike Novogratz has always been very supportive of cryptocurrencies, and very bullish on Bitcoin. He recently stated that he sees the coins’ prices triple in the following 18 months, meaning that Bitcoin’s return to $20,000 might not be far away, according to him.
He noted that Bitcoin is back to $6,000 after its price hit as low as $3,100 only a few months ago. These days, Novogratz does not believe Bitcoin will return to such lows unless there is a devastating exchange hack or a major shift in regulations. Of course, there was a big hack that had the potential to damage the coin’s price, only days ago. The world’s largest crypto exchange by trading volume, Binance, saw a significant security breach which resulted in a theft of 7,000 BTC.
However, so far, the coin did not react negatively to this incident. While Novogratz believed that such an event would shatter the new confidence in BTC, it simply did not happen. However, he…
TokenRoll (TKR) Platform Will Take Online Casinos to the Next Level
Corporate executives are turning to blockchain technology more than ever in an attempt to revolutionize the business world. Although blockchain is still a relatively new concept, that hasn’t stopped more and more companies from jumping on the bandwagon. This hot new technology has quickly gained a reputation for providing greater transparency, enhanced security, improved traceability, increased efficiency, and low costs. One industry that could certainly benefit from decentralization is the online gambling market, specifically, online casinos. TokenRoll (TKR) has developed a platform that appears to offer a promising alternative to centralized casinos.
Problems with Centralized Casinos
The primary reason why blockchain technology is being implemented so quickly is because it solves a lot of the problems typically associated with the traditional business model. And online casinos are no different. It still needs to be said that centralized casinos have proven that there is a great demand for online gambling. The market is growing faster than anyone could have predicted, and future opportunities appear very promising and lucrative. But industries are continually evolving and this one is no different.
A few of the problems facing centralized casinos include the following:
- Little to no transparency
- Consumer lack of confidence
- Privacy concerns
- 48-72 hour wait time for withdrawals
These are four monumental issues that need to be addressed quickly given the global growth of the market. Casinos need to…
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