Duy, Author at SynQ

Author: duy

November 2020 – Weekly Recap 4

Weekly Recap

November 23rd, 2020 - November 30th, 2020

Welcome to our 4th weekly recap for November.

Overview 

Crypto News

 

After rallying 80% in two months, Bitcoin (BTC) is recapturing media interest from the top end of town, with The Wall Street Journal discussing the cryptocurrency’s adoption among institutional investors on the site’s home page on Nov. 23.

Japanese financial giant SBI Group has announced a cryptocurrency lending service in its Sept. 24 press release.

It will be offered through the company’s cryptocurrency-oriented arm SBI VC Trade.

Binance has announced that it will support XRP’s Flare Networks snapshot and airdrop of Spark tokens and is the latest major exchange to support the event.

IOTA in collaboration with Pantos is looking to promote blockchain and DLT interoperability under the aegis of a new research laboratory dedicated to the two emerging technologies.

John Ratcliffe, the US Director of National Intelligence, has reportedly penned a letter to the Securities and Exchange Commission (SEC) expressing concern about China’s control over Bitcoin and crypto.

Crypto rating agency Weiss Ratings is reporting that the anticipation of a post-Covid world is serving as fuel for Bitcoin’s ascent while other safe-haven assets like gold are losing their luster.

The firm, which invests across asset classes on behalf of companies, pension funds, and sovereign wealth funds, wrote in a filing on November 27 that it might “seek investment exposure to bitcoin indirectly” via Grayscale’s Bitcoin Trust product (GBTC) through its Macro Opportunities Fund.

Thousands of new nodes have joined the ethereum network in the last few days to reach 11,162, one of its highest number in years.

There were some 8,000 nodes on November 15th, with it beginning to jump on the 22nd from 9,500 to more than 11,000.

November 2020 – Weekly Recap 3

Weekly Recap

November 16th, 2020 - November 23th, 2020

Welcome to our 3rd weekly recap for November.

Overview 

Crypto News

 

  • The dollar has lost significant value against the Chinese Yuan (CNY) since May of this year.

    It has dropped from $1 buying you 7.2 CNY to now just 6.5 CNY, its lowest level in two years.

    Crypto investors who register their XRP in an eligible account will receive free Spark tokens in a 1:1 ratio when the Ripple-backed blockchain company holds its “snapshot day” on December 12th. Recipients will retain ownership of their XRP holdings while receiving the new tokens.

    In a newly published report, crypto investment firm Pantera Capital says a Bitcoin shortage is at the heart of the recent price surge and that the majority of newly minted BTC is being scooped up by PayPal.

    Some 3.2 million testnet eth and more than 100,000 validators are now staking on it, showing significant demand to test the new Proof of Stake ethereum blockchain which is expected to go out imminently.

    His nomination by President Trump still requires the Senate to confirm him before he becomes the official Comptroller of the national bank regulator.

    Before his nomination appears before the Senate house, he has to first scale through the confirmation hearing of The U.S. Senate Banking Committee which oversees the Office of the Comptroller of the Currency (OCC).

    Bitfinex’s derivatives platform is in the news today after it announced the launch of its perpetual contracts for IOTA, Chainlink, and Uniswap. Each of these contracts will offer users maximum leverage of up to 100x, leverage that is typical of such contracts and they will be settled in Tether (USDt) tokens.

    Jay Clayton, the current chairman of the Securities and Exchange Commission (SEC), announced he will be stepping down from his position by the end of 2020.

    During his tenure, Clayton has blocked all proposals for a Bitcoin ETF and waffled on whether tokens like XRP are indeed securities.

Elrond

Elrond

 

Elrond is a blockchain with unique architecture, employing a Secure Proof of Stake (SPoS) consensus for security and an Adaptive State Sharding scheme for high scalability. By offering an EVM compliant engine for smart contracts, the platform looks to ensure native interoperability to languages such as Rust, C/C++, C#, and Typescript. The team consist of individuals with backgrounds associated to Google, Microsoft and Intel and those were part of the NEM blockchain platform.

The project raised $3.2 million by selling 25% of the token supply in an exchange offering on Binance Launchpad in 2019. As the blockchain transitioned to it’s mainnet during July 2020, the total token supply was reduced from 20 billion to 20 million.

Secure Proof of stake is a method of consensus that combines eligibility through stake and rating with random validator selection, along with an optimal dimension for the consensus group. The BFT-like consensus protocol provides security through the randomization of nodes. Each node in the shard may determine the members of the consensus group at the beginning of a round. The aggregated signature from the last block is used as a randomization factor for this process. A weight factor of rating will be introduced to promote meritocracy among the nodes, in addition to the stakes of nodes in consideration. The Bellare and Neven multi-signature scheme will also reduce the number of communication rounds as part of the signing algorithm.

Fig. 10: Shuffling the nodes at the end of each epoch

Meanwhile, Adaptive State Sharding brings a 1000x improvement to the ecosystem by utilizing parallel transaction processing by combining all three sharding types (State, Transactions, and Network) into the network. Elrond can reportedly process up to 10,000 TPS with a 5-second latency.

Fig. 12: Network throughput measured in transactions per seconds with a global network speed of 8 MB/s

The Network Structure of Elrond consists of Shards, Metachain, and Nodes.

Shards are smaller partitions of the network and are used for scaling. Individual Shards processes a portion of the state of accounts, smart contracts, blockchain, and transaction processing in parallel with each other.

Metachain is the blockchain that runs in a specialized Shard. Its main purpose is to notarize and finalize the processed Shard block headers, facilitating Shard communication, storing and maintaining a registry of Validators, Epoch management, and processing Fisherman challenges, rewards, and penalty.

Nodes are computers, smartphones, or servers running the Elrond client and relaying messages between peers. Nodes can perform the roles of Validators, Observers, or Fisherman to provide different support levels to the network and earn proportional rewards.

Validators act like the typical stakers of a blockchain. They are nodes within the network that processes transactions and security using the consensus mechanism to earn fee rewards.

Observers are passive members of the network and act as record keepers. Full Observers maintains the complete history of the blockchain, and Light Observers are limited to 2 Epochs of blockchain history. EGLD tokens are not required for their participation, and likewise, they are not rewarded.

Fishermans are nodes that verify block validity after their proposal. Invalid blocks from malicious actors are challenged and removed. This role can also be filled by validators that are not part of the current consensus round, or by Observers.

Conceptualized in 2018, the project is nearing completion.

Fundamentals

EGLD is currently trading at $7.74 with a circulating supply of 14 Million coins and a max supply of 20.4 Million coins. The current market cap is $3,936,269,055 USD.

 

November 2020 – Weekly Recap 2

Weekly Recap

November 6th, 2020 - November 13th, 2020

Welcome to our 2nd weekly recap for November.

Overview 

Crypto News

In a research note published Friday, JPMorgan analysts said Grayscale’s bitcoin trust saw cumulative inflows through October, whereas gold exchange-traded funds (ETFs) saw “modest outflows” since mid-October. “This contrast lends support to the idea that some investors that previously invested in gold ETFs such as family offices, may be looking at bitcoin as an alternative to gold,” said the analysts.

A former chairman of the Commodity Futures Trading Commission (CFTC), Gensler was tapped to lead the agency review team for the Federal Reserve, banking and securities regulators, the Biden campaign formally announced Tuesday, following reports last week he was a contender.

Per its updated announcement, PayPal ended its waitlist for customers looking to use cryptocurrency in the U.S. Trading features a limit of $20,000 per week, which is double the originally announced $10,000.

Bitcoin was recently promoted on national television by the incoming Wyoming senator Cynthia Lummis. She is the first woman to have been elected to this position.

 

Web3 – Polkadot / Kusama

Polkadot / Kusama

 

Polkadot

Polkadot is a blockchain platform that was founded in 2017 by Dr. Gavin Wood, co-founder of Ethereum. It is an open-sourced project with over 100 participating developers across multiple teams, assisted by institutions such as Inria Paris and ETH Zurich.

The platform was the result of Dr. Wood’s desire to support and advance the “Web 3.0” vision of a decentralized web. Along with the Web3 Foundation, the Polkadot whitepaper was published to address the lack of critical technology and the solution, interoperability.

Image for post

Para-chain and Relay Chain connections.

This is achieved through the concept of para-chains, in which multiple chains can communicate with a core main chain known as the relay-chain. Any blockchain platform that is compliant with the Polkadot Relay Chain API can be a para-chain. Others that aren’t natively compatible can be connected through “bridges”. Platforms can utilize the para-chain mechanic to run their own transactions and communicate with other chains through Polkadot. There is a support limit of 100 para-chain, and the slots will be auctioned off in un-permission candle auctions, one at any given time.

There are also para-threads, which are lower throughput, pay-as-you-go model para-chains.

 

Polkadot/Kusama Structure Overview

Validators are the stakers of the network and works to secure the Relay Chain by validating proofs from collators and participating in consensus with other validators in the network. Information within exchanged para-chain blocks are first verified, and Relay Chain blocks are produced based on validity statements from peers within the network. Validators are recompensed with block rewards, including transaction fees, in DOT. Non-compliance with the consensus algorithms will result in the removal of all of the offender’s staked tokens.

Polkadot natively supports Substrate, a modular framework that was developed by Parity Technology, to assist in the creation of blockchain products and is quickly becoming a standard in the industry. Any Substrate-based project can be supported as a para-chain, allowing for ease of adoption.

The project raised several hundred million dollars in their series of sales and ICO, which has provided the funds required to build and foster the development of the platform. The Web3 Foundation, Parity Technologies developers, and capital partners such as Polychain Capital will also be supporting the project. Polkadot’s platform officially launched on 26th May 2020, and its token listed soon after in August 2020.

Image

 

Kusama

Kusama is a cousin-chain of the Polkadot network, founded in 2019. Aptly dubbed as the canary-net, Kusama’s intended purpose is to serve as Polkadot’s experimental community research and development network. It is where developers and teams can test Polkadot functionalities such as runtime upgrades, on-chain governance, para-chains, para-threads, and etc. in a live environment.

polkadot_vs_kusama

Comparing the cousins.

Upgrades to the Polkadot platforms are also likely to be deployed to Kusama before the Polkadot mainnet. Kusama has a modified governance parameter with shorter time gaps between governance events, allowing faster growth.

As a parallel of Polkadot, Kusama is built using Substrate and uses nearly the same codebase as Polkadot. Both act as their own independent networks, but will be likely bridged together in the future for cross-network interoperability.

Fundamentals

DOT is currently trading at $4.48, with a market cap of $3,936,269,055 USD. The current circulating supply is 877,680,090 DOT coins and the max. supply is not available. 

KSM is currently trading at $38.21 USD, with a market cap of $323,602,069 USD. The current circulating supply is 8,470,098 KSM coins and the max. supply is not available.

November 2020 – Weekly Recap

Weekly Recap

November 1st, 2020 - November 6th, 2020

Welcome to our 1st weekly recap for November.

Overview 

Crypto News

The RBA has partnered with Australia’s two largest banks and leading Ethereum software company ConsenSys that is spearheaded by Joseph Lubin, one of the cryptocurrency’s co-founders. The findings of the project are expected to be presented in early 2021.

Rumors are spreading the Chinese authorities have put under investigation Zhu Jiawei, the COO of Huobi, a Chinese run exchange with a flourishing Over the Counter (OTC) market that serves China.

In Monday’s quarterly earnings call, PayPal executives confirmed that they’d seen so much interest in the feature that they would raise buying limits from $10,000 to $15,000.

Ethereum 2.0 Phase 0 has now been formalized for launch at some time around Dec. 1. The deposit contract is live and can collect the necessary funds to trigger staking.

An update by the Ethereum Foundation released on Wednesday explains how the genesis process is expected to happen.

Everything is up—Bitcoin, stocks, gold, the yuan, and the euro—except for the U.S. dollar.

 

Related News

While the United States prepares for the results of the 2020 Presidential Election, a number of data points and traders expect some significant cryptocurrency price fluctuations this week. Statistics from skew.com show bitcoin’s 30-day implied volatility has increased to 59% while 3-6 month stats jumped over 62%.

According to a press release, after two years of effort, Gazprombank’s subsidiary in Switzerland has been authorized to offer crypto custody and trading against fiat currencies to selected institutional and corporate customers.

According to a bombshell Forbes report dated Oct. 29, there is some “speculation” that Binance, the largest cryptocurrency exchange in the world by trading volume, is currently being investigated by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS).

DEX – Ocean Protocol

Ocean Protocol V3

Introduction

Ocean Protocol is a DEX platform whose goal is to empower data-ownership and decentralizing servers. It is a culmination of blockchain, data sharing framework, and ecosystem related services. Providers and consumers can utilize the platform to share, stake and trade data access whilst retaining transparency, traceability, and security for all stakeholders involved using datatokens.

A datatokens is an interoperable ERC20 that represents both the value and the access permission of a registered dataset which could be a copyrighted IP or encrypted data on a storage device. A user must send 1.0 datatoken to the data provider to acquire the license to use that dataset.

Datatokens can also be used as the interface that connects data assets with blockchain and DeFi tools via DeFi composability within Ocean. Each data service in Ocean Protocol will also be assigned its own data token and can be leveraged as their equivalent. For example, crypto wallets can become data wallets, crypto exchanges to data marketplaces, or DAOs as data co-ops. This interchangeability allows Ocean to act as an on-ramp & off-ramp for data assets across DeFi platforms.

“Ocean is an on-ramp for data into ERC20 datatoken data assets on Ethereum, and an off-ramp to consume data assets.”

The Ocean marketplace serves as an intermediary between data providers and consumers, and stores a record of registered data holders and consumer transactions. However, none of the registered data are kept on-chain. The platform only facilitates access links, and owners can upload and store their data behind their respective firewalls and encryption.

In this data economy, the $Ocean Token is the commodity that drives the platform, and is the default unit of exchange. This utility token is used to stake on data, governance, and trading. It can be earned through multiple means. Stakers are given a cut of the transition fees as a liquidity provider, sellers are given the majority of their sales revenue, or a user could build your own Ocean-based marketplace where they can earn a cut of every data asset sold on their own market.

 

Image for post

The $Ocean Token’s mechanics are based on a Web3 sustainability loop model.

As of October 27th, 2020, Ocean Protocol’s V3 platform went live. Which meant the Ocean Market has also exited beta and entered public access. The team has contracted security audits, and their architecture has also been updated as shown.

 

Image for post

Source: Ocean V3 Architecture Overview

Ocean Protocol has additionally announced an early-stage program for Web3 community integration and growth called Ocean Shipyard, which has set aside up to 20 million Ocean Token over the next 2 years to fund projects and teams interested in building on Ocean.

Fundamentals

OCEAN is currently trading at $0.44 USD, with a market cap of $182,499,539. The current circulating supply is 414,026,837 out of a total supply of 613,099,141 $OCEAN

Source: https://coinmarketcap.com/currencies/ocean-protocol/

October, 2020 – Monthly Recap

Monthly Recap

October, 2020

Welcome to our monthly recap for October.

Overview 

Crypto News

The American FBI and CFTC are going after the largest Bitcoin derivatives exchange BitMEX for operating an “illegal” exchange.

CFTC and the U.S. Attorney for the District of New York have charged BitMEX for operating an unregulated exchange and non-compliance with KYC and AML guidelines.

Crypto exchange Coinbase is now offering “instant” withdrawals in nearly 40 countries, including the U.S. and the U.K.

The new feature is being facilitated via Visa and Mastercard.

The U.K.’s Financial Conduct Authority (FCA) has today officially banned the sale of cryptocurrency derivatives and exchange-traded notes to retail users, more than a year after first proposing such a ban.
The ban will come into effect on January 6, 2021.

In a press release shared with U.Today exclusively, Block.one unveiled that the global cloud monster Google Cloud intends to join the EOS community and become a Block Producer on the EOS network. Google Cloud joining in is a major milestone for EOS Google Cloud intends to become a block producer (BP) candidate on the EOS network and, after joining it, this branch of the global IT heavyweight will leverage EOS as it is taking steps to become one of its BPs.

Square, Twitter CEO Jack Dorsey’s payment company, has purchased $50 million worth of bitcoin.
The investment represents approximately 1% of Square’s total assets as of Q2 2020.
Square has become the second publicly-listed company after MicroStrategy to invest in bitcoin.

The authorities in China’s province of Shenzhen are planning to airdrop the soon-to-launch Chinese CBDC to its local residents. Reportedly, this will mark as the largest campaign initiated as part of the pilot program for the Chinese digital currency.

As reported by the South China Morning Post, citizens have been able to enter a lottery to receive the digital funds, of which coins worth 10 million yuan ($1.47 million) will be awarded to promote their use in roughly 3,400 designated stores in the Luohu district.

XRPL Monitor spotted gargantuan amounts of XRP moved by the blockchain behemoth Ripple. Meanwhile, large XRP movements have been noticed on various Ripple ODL partner exchanges, and the Binance giant transacted 13 mln XRP to the San Francisco-based tech company.

Grayscale Investments has announced a record quarterly performance, raking in $1.05 billion in investments, mostly from institutional investors. The company also sees “unprecedented demand” for bitcoin cash.

Schnorr signatures and Taproot, formally the Bitcoin Improvement Proposals (BIP) 340 and 341, are two of the biggest changes to Bitcoin since the activation of Segregated Witness (SegWit)—an implementation which increased Bitcoin’s blocksize limit—in 2017. Schorr itself is based on the SegWit mechanism.

PayPal has finally decided to embrace crypto and will soon offer its U.S. customers the ability to buy, hold, sell, and use various virtual currencies, having obtained a New York license permitting it to do so.

Hackers obtained USDT and USDC stablecoins worth $24 million from Harvest Finance’s stablecoin and BTC pools.
Harvest’s governance token FARM plummeted 60% following the revelation of the hack.
$400 million in total liquidity have been drained out of Harvest Finance as liquidity providers (LPs) flee the platform.

Dubbed “DBS Digital Exchange,” the trading platform would allow users to trade in four crypto assets — bitcoin (BTC), bitcoin cash (BCH), ether (ETH), and XRP — against Singapore dollar (SGD), Hong Kong dollar (HKD), Japanese yen (JPY) and U.S. dollar (USD).

As cryptocurrency analyst Jason Deane explained in his recent coverage of these price milestones, the fact that BTC/lira has hit an all-time high, while BTC/USD has not, indicates that the lira’s purchasing power against the world reserve fiat currency has weakened.

JPMorgan Chase announced that its native digital currency offering — the JPM Coin — has finally been deployed for mainstream use by one of the firm’s technical associates. The token is designed to facilitate JPMorgan Chase’s various cross-border monetary transactions.

 

Related News

Financial institutions and money service providers using the San Francisco startup’s XRP-powered, cross-border payment product, On-Demand Liquidity (ODL), can borrow Ripple’s native currency for a one-time fee via an approval system that will move faster than legacy financial options, according to a press release.

According to data shared by the XRPL Monitor bot, San Francisco-based tech behemoth Ripple has conducted several large transactions, transferring approximately 100 mln XRP between its wallets and sending part of the money to its ODL corridor in Europe.

DeFi – Synthetix SNX [Update]

Synthetix

Introduction

Synthetix, was formerly known as Havven, and was rebranded during November 2018 to better represent its growth. The project which has initially started as a payment network had grown to become an asset issuance Defi protocol with an active community governance system and is recognized as the leading derivative Defi with ~$563m TVL.

 

Source: https://defipulse.com/

Within the platform, assets locked in a contract are collateralized using the Synthetix Network Token, SNX, to generate various synthetic assets such as sUSD, sAUD, sKRW, called Synths. Users will be able to convert between Synths directly with the smart contract, improving the liquidity of DEXes. Holders of SNX stakes are paid a pro-rata portion of the fees generated by Synthetix’s Exchange as an incentive for their contribution.

Additionally, token holders can participate in governing multiple variables of the ecosystem as a whole; at one point even uniting and voted on an improvement proposal even without the support of the Synthetix team after a community debate in the Synthetix Discord.

Source: Change proposed and implemented by the community for the Capella release.

Synths are currently backed by a 750% collateralization ratio, but this is subject to change depending on the platform’s community governance mechanisms in the future. To ensure Synths are backed by sufficient collateral to deal with large price shocks, stakers will be governed using a collateralization ratio, or C-Ratio. A staker’s C-Ratio is relative to the fluctuation of SNX and Synths, and a staker will be unable to claim fees with a ratio less than 750%. Ratio can be restored by minting or burning synths.

As of Oct 13, 2020, Synthetix entered a partnership with PowerPool, allowing the SNX token to become one of the first Power Index participants. Synthetix will contribute to the index composition, and integrate SNX’s governance system into PowerPool’s meta-governance. Currently, the governance is based on polling within the SNX Discord channel to signal community consensus, but the team is currently building a governance system based on SNX. This partnership will also open up new utilities and opportunities for SNX holders to multiply voting power across Defi protocols. Each holder can supply SNX into the Power Index to own SNX and earn CVP (the Power Index’s meta-governance token which can be used to vote in different Defi protocols using GTs pooled into the Power Index.) at the same time.

Fundamentals

SNX is currently trading at $3.43, with a market cap of $358,394,515. The current circulating supply is 104,525,838 out of a total supply of 206,308,351 SNX.

Source: https://coinmarketcap.com/currencies/synthetix-network-token/

September 20th, 2020 – Weekly Recap

Weekly Recap

September 13th- September 20th, 2020

Welcome to our 4th weekly recap for September.

Overview 

Crypto News

  • As members of the U.S. Federal Reserve plan to convene this week, both gold and bitcoin (BTC) markets have started to climb in value ahead of the meeting. Bitcoin prices rose over 4% during the afternoon’s trading sessions and gold jumped 0.76% as well. The price of one ounce of fine gold is $1,956.24 at the time of publication.

    Meanwhile, after a brief upswing in value, the U.S. dollar has started to show signs of weakness again after losing massive amounts of value this year.

  • BitPay, the Atlanta-based cryptocurrency services provider, has recently released blockchain payment statistics that show how the market performed in 2020. Among other interesting points, the data signals strong support from U.S. consumers for the company that announced its first Mastercard branded card just a few months ago.

  • Regulators in 49 U.S. states have agreed to a single set of supervisory rules for money services businesses, including cryptocurrency service providers. State regulators supervise 79% of all U.S. banks.

  • The Indian government has not made any announcement regarding its plans for cryptocurrency, which has led to rumors and speculation. Several reports indicate that the government is planning to ban cryptocurrencies as outlined in the draft bill submitted by the Garg committee.

  • Kraken announced Wednesday that it has received a U.S. bank charter. “The state of Wyoming has approved Kraken’s application to form the world’s first Special Purpose Depository Institution (SPDI), tentatively called Kraken Financial.