For a long time, Infura has been one o Ethereum’s most popular, but also most controversial, technologies. It is responsible for handling over 13 billion code requests every day, and it also allows developers to enter the blockchain without running a full node. However, according to experts, it is also the reason why so many dApps were created on ETH network, due to the simplicity of interaction.
So, what is the problem? Well, the problem is that Infura is operated by one single provider, which is the ConsenSys development studio. Not only that, but it also relies on Amazon’s cloud servers. As such, many consider it to be the weak spot of the Ethereum network, one that might bring to its failure if left unresolved.
Simply put, every dApp that has any connection to Infura would stop working if Infura was ever turned off. This is a big concern, and while Infura’s contribution to ETH ecosystem and its importance to the network is undeniable, a centralized service cannot be allowed to serve as a pillar of the developer community.
This is why numerous developers have decided to try and distance Infura from Ethereumby attempting to bring forth decent alternatives. However, while there have been numerous attempts to achieve this, a proper method that can fully replace Infura has yet to emerge.
dApps Depend On Infura
Right now, there are around 11,803 full nodes on Ethereum. About 5-10% of them are Infura-based. However, Infura is under constant maintenance, which makes it highly reliable, and also more than capable of handling huge amounts of traffic. In other words, the issue is not how Infura does its job. The problem lies in the fact that it is a centralized service.
The reason behind using a service like this is its ability to handle large quantities of data in the first place. A full active node on Ethereum needs to be able to handle as much as 1 Terabyte of data, which is clearly much more than a regular laptop can handle. By using Infura, developers can focus on the software, and not worry about hardware or storage.
The same is true for users who often use a tool called Metamask for holding their coins. Metamask depends on Infura just as much, which means that almost all dApps do too.
Another issue regarding Infura is privacy, as it uses Amazon’s storage. Also, if Amazon ever decided to cut ties, most of the functioning dApps on Ethereum would stop working.
Reaching True Decentralization
As mentioned, there are numerous attempts to reach an alternative to Infura and cut the network’s dependence on it. One such potential solution is a new code library called LightJS, which was released by Parity Technologies. The goal is to convince developers to create light clients instead of relying on Infura. Light clients require less storage and less dependence on hardware, while the degree of decentralization increases.
The hope is that less and less future dApps would choose to connect to Infura, and would instead go for light clients.
Other projects that are trying to reduce dependence on Infura include VIP node, Dappnode, D-node, and others, all of which aim to convince people to run their own full node. Many believe that this is not already the case as there are no rewards for running full nodes. This is something that VIP node aims to change, and hopefully, attract developers.
D-Node aims to create a market between node operators and developers, but it also wants to decentralize their economic relationship. To achieve this, it uses DAO — Decentralized Autonomous Organization.
As for Dappnode, it was created in order to allow developers to set up their local networks and design it in a way that will make dApp deployment easier. Some of these projects, especially VIP node, also receive funding from Infura itself.
Solving The Problem
ConsenSys, the firm behind Infura, is also one of Ethereum’s largest startups. It also announced that it is funding an Incubator project, which is to cut Metamask’s dependence on Infura. And even Infura itself is attempting to help by adding different cloud providers so that Amazon would not be in full control of all ETH dApps.
Everyone is trying to add more decentralization to Ethereum, even Infura itself. It originally became popular thanks to the nature of Ethereum’s platform, which is capable of producing and executing dApps instead of just using the cryptocurrency for making transactions.
In addition, the hardware is of great importance for Ethereum network, as Ethereum also stores a sum of all computation that happens on the platform. This is called “state”, and it keeps growing as more users interact with the platform. This makes hardware more expensive, as well as more difficult to use, which also doesn’t encourage users to get involved.
These issues have been noticed and recognized a long time ago. While different methods were developed in order to resolve them, they all have their own flaws that need addressing. Even Ethereum’s co-founder, Vitalik Buterin, proposed a method of fixing some of these issues which comes down to rewriting the underlying incentive so that users would get rewards for running a full node.
This is one of the changes that were included in a new upgrade called Ethereum 1x, which is expected to be implemented at some point in 2019.
Bitcoin Technical Analysis: BTC/USD danger remains at large, $3000 eyed
- Bitcoin price on Monday nursing minor losses of some 1.4% into the second half of the day.
- Vulnerabilities continue to lurk for BTC/USD, at danger of retesting the $3000 mark to the downside, where some call it the bottom.
- Bobby Lee, forecasts $333K for Bitcoin. Saying, “If history repeats perfectly, then the current bear market for #Bitcoin would bottom out at $2,500 next month, in Jan 2019. And then the next rally would start in late 2020, peak out in Dec 2021 at $333,000, and then crash back down to $41,000 in Jan 2023.”
Spot rate: 3474.38
Relative change: -1.60%
Support 1: 3466.00, near-term ascending trend line.
Support 2: 3392.70, daily pivot point support.
Support 3: 3252.53, psychological support.
Resistance 1: 3516.95, 15-minute resistance.
Resistance 2: 3655.36, daily pivot point resistance.
Resistance 3: 3777.85, daily pivot point resistance.
BTC/USD 4-hour chart
- Price action is depressed, moving within a range-block, ahead of further potential moves to the deep south, $3K remains eyed.
Crypto market colored in red; Bitcoin languishes under $3,400
- Altcoins resumed the downside after a short-lived recovery.
- Bitcoin returned to $3,300 after an attempt to break above $3,600.
The cryptocurrency market was short-lived. Once again. Bitcoin and other major altcoins resumed the downside movement on Monday with the total capitalization of digital assets in circulation dropped below $110B, killing hopes to witness good bullish trend into the year-end. Prices bumped into resistance levels unable to instigate buying interest amid pessimistic sentiments that gripped the market.
Stephen Innes from Oanda is among those who prefer to hold off on calling the bottom on the cryptocurrency market. He believes that we still do not have a convincing use case for Bitcoin and the absence of good non-speculative reasons to buy it makes the situation worse.
“Bitcoins have gone well beyond the ridiculousness of tulip bulb mania, It’s has been a disastrous year for cryptos, and by all indication, the current bear market could go from bad to worse with no fundamental or underlying reasons to buy BTC even more so when the only support offered up is a squiggly line on an analyst chart,” he commented.
Bitcoin has lost nearly 4 % since this time on Monday to trade at $3,380 at the time of writing. The first digital coin smashed both $3,500 and $3,400 handles after a failed attempt to settle above $3,600. Lack of buying interest may increase the short-term pressure on BTC that has already lost about 84% from its all-time high of $19,000.
Ethereum, the third largest digital asset, stays under critical $100. ETH/USD is changing hands at $90.00, having lost 3.7% in the recent 24 hours. The coin’s market value is dropped at $9.4B, while the average trading volumes have settled at $1.7B, down from $2.5B at the end of the previous week. Ethereum network is getting ready for a pivotal Constantinopole update scheduled for January 2019, which puts the coin under additional pressure.
Ripple’s XRP is trading marginally above $0.30 within the strong bearish trend. The coin is 3% lower on a day-on-day basis and mostly unchanged since the beginning of Tuesday. The second largest coin with market value $12.3B is dominated by bearish sentiments of the cryptocurrency market. Irresponsive to fundamental news, the coin is likely to stay volatile.
All major altcoins out of top-20 are in red, losing from 1% to 10% as bears are back at the driving wheel.
Nouriel Roubini and Anthony Pompliano’s “Buffet Bet 2.0” feud rages in the Twitter-verse
Anthony Pompliano, a Bitcoin enthusiast and the founder of Morgan Creek digital asset recently set off a bet, now being called as the Buffet Bet 2.0, putting $1 million at stake. The bet by Pompliano is a competition between the performance of S&P 500 index and cryptocurrencies as a whole.
Roubini being himself had an opinion on this bet and bad-mouthed Pompliano and his bet, which led Pompliano to invite him to go against the bet. The feud continued as Roubini took to his Twitter saying that Pomp is “changing goal posts” and “talking books all day”.
To Roubini’s Tweet, Pompliano replied:“Talk is cheap. You taking the bet or going to Monday morning quarterback this one?
If you want to check out the index, you can see it here digitalassetindexfund.com”
On December 10, Roubini erupted the feud again when he Tweeted:“You take bets only when there is no counter-party risk, ie when the side losing the bet is still there to pay it. The loser pompous @APompliano who lost 80% for investors in his shitcoin fund is only seeking attention with his bet. His fund will be BUST/GONE well before 10 years”
Pompliano replied to him saying that Roubini was the candidate for the worst call of the decade.
Mark W. Yusko, the co-founder of Morgan Creek Digital also replied to Roubini’s above-mentioned thread saying that there was zero counter-party risk in the “Buffet Bet”.
A Twitter user Bitvillain replied to the same thread:“Sounds like an easy win for you Nouriel. I think there are plenty of good charities that you could donate your winnings to. Take the bet! Surely the odds of crypto beating the S&P 500 over 10 years is close to zero. What could possibly go wrong?”
Meanwhile, on the other side of Twitter-verse, an S&P believer, Jim O’Shaughnessy, Chairman & Chief Investment Officer, OSAM, bet against the cryptocurrencies in his tweet saying that he was up for the bet.
O’Shaughnessy in subsequent tweets said that the bet was not going to happen. He tweeted:“[email protected] won’t do it, @patrick_oshag (my son, the least-millennial millennial I have ever met) is tired of talking about crypto, so, no bet from us. Ah well…