Following the latest move of Tether, Inc., nearly half of all USDT supply will exist on the Ethereum network. Out of 4.087 billion coins in circulation, nearly 1.9 billion will move using the Ethereum protocol.
In few hours Tether will coordinate with a 3rd party to perform a chain swap (conversion from Omni to ERC20 protocol) for 300M USDt. Tether total supply will not change during this process.
— Tether (@Tether_to) September 12, 2019
Tether has been relatively conservative with new coin printings, while the switch to the new network is still unfinished. The switch involves Tether’s own wallets and a series of coin burns, but major exchanges are also helping, by being some of the first to switch to the new type of USDT. Binance was the first exchange to move to the ETH-based USDT and offer withdrawals only in the new coin.
The markets are closely watching the decisions of Tether, as the influence of USDT has proven capable of swaying most major coin prices within hours. In the case of BTC, USDT trading has ensured the possibility for thousand-dollar gains within a day.
But switching to a new network
Even with the current ETH-USDT supply, the network is feeling the strain. The USDT smart contract, responsible for moving coins, is taking up more than 36% of all gas on the Ethereum network, raising overall gas prices. Payments for USDT transfers specifically are also increasing. Tether has been the biggest gas burner on the network for the past month, show Ethgasstation data.
Still, Tether and its users have paid around $412,000 equivalent in fees, while USDT trading exceeds $17 billion in a day, making the fees relatively low in perspective.
The inflow of USDT has not helped ETH market prices, which still hover around $178.14. But the network congestion, which also takes into account other distributed apps, may make the usage of the network slower and more expensive. Currently, Ethereum sees more than 90% of its computational resources utilized, while the distributed ledger has grown to levels impossible to keep for regular users.
Ethereum To See Further Distribution Over Time
- Over the past ten or eleven years or so, there has been a significant increase in the adoption of cryptocurrencies like bitcoin.
- In a recent report by Coinmetrics, it delves into the amount of bitcoin and other cryptocurrencies being held by other platforms.
Over the past ten or eleven years or so, there has been a significant increase in the adoption of cryptocurrencies like bitcoin. There have been some highs and lows but unfortunately the mainstream the lows seem to have outweighed the highs as platforms such as Mt. Gox has seen significant attacks/hacks which shadows over the good impact that cryptocurrency can have on the rest of the world.
This is where concerns start as when the Mt. Gox platform got hacked and lost 70 per cent of the world’s bitcoin transactions, questions started getting raised on how safe the digital asset was and whether it was worth all the hassle.
In a recent report by Coinmetrics, it delves into the amount of bitcoin and other cryptocurrencies being held by other platforms and attempts to answer if any in the
BTC and ETH where the key cryptocurrencies that were under investigation. Compared to BTC, ETH didn’t consistently increase over the last five years and in 2017, the volume of ETH went down quite significantly – specifically during the bull run of December that year. However, at the start of 2018, it seemingly took off.
Kraken was the first major crypto platform to trade ETH. Over the past five years, we’ve seen ETH change as well as the amount of cryptocurrency being accumulated by different platforms.
The main highlight of the report was that ETH is getting more distributed and it has been over the years. It only seems that this number is going to increase over time and especially over this decade. This is a positive sign for the second-biggest cryptocurrency but it should also be a good sign for adoption and where we could be going over the next few years…
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!
ETHEREUM 2.0 GATEWAY SUCCESSFULLY VERIFIED
- Ethereum 2.0 Deposit Contract Ready
- ETH Price Reaction
Development on Ethereum 2.0 is continuing to break new grounds as one of the most important smart contracts for the network has just been successfully verified.
ETHEREUM 2.0 DEPOSIT CONTRACT READY
Tech startup Runtime Verification has reported the successful completion of formal verification of the Ethereum 2.0 deposit contract.
“Although we found several critical issues of the deposit contract during the formal verification process, some of which were due to subtle hidden Vyper compiler bugs, all of the issues of the deposit contract have been properly fixed in the latest version (v0.10.0),”
According to the announcement, the deposit contract is a ‘gateway’ to join Ethereum 2.0. Validators on the new proof of stake Beacon Chain need to deposit some ETH by sending a transaction over the Ethereum 1 network to the deposit contract.
The deposit contract records the transaction history and locks these deposits on the ETH 1.0 chain for later claiming on the Beacon Chain. The smart contract employs the Merkle tree data structure to store the deposit history efficiently.10 BTC & 20,000 Free Spins for every player in mBitcasino’s Winter Cryptoland Adventure!
ETH 2.0 coordinator, Danny Ryan, confirmed that the formal verification was the last hurdle, adding;
“This is the primary audit/verification. The
There are no other audits planned for the deposit contract however there are two more expected for Beacon Chain in February according to Trustnodes.
Last week it was reported that 22,000 active validators were running the first Ethereum 2.0 client on test net.
These client testnets may start connecting to each other in a prelude to the genesis block test net which heralds the first major implementation of proof of stake.
At the beginning of the year, nine independent teams began work on implementing Phase 0’s Beacon Chain. It is expected to launch in the second quarter of this year according to Josh Stark’s yearly Ethereum roundup.
ETH PRICE REACTION
As expected these under the hood developments on ETH 2.0 had no real impact on token prices. Ethereum has currently pulled back a couple of percents to settle at the $165 level where it is expected to consolidate until bitcoin makes a bigger move.
2020 has been bullish for Ethereum so far with gains of almost 30% since New Year’s Day. Long term technical signals are finally turning bullish and there is renewed hope that ETH can finally break out of its two-year bear market.
As proof of stake nears and development continues it is only a matter of time before Ethereum is back in bullish territory.
Chainalysis report claims exchange security, hackers have improved simultaneously
In an excerpt from its upcoming ‘2020 Crypto Crime Report,’ Chainalysis addressed cases of cryptocurrency exchange hacks over the years, while tracking where the funds went after they’re stolen. The report also addresses the perpetual war between crime and law enforcement.
In 2017, four exchanges were hacked, amounting to $86 million in stolen funds for the year. Despite 2018 only seeing a 50% increase in the number of exchanges hacked, the amount stolen was ten times more, with $875.5 million stolen from 6 exchanges. 2019 saw eleven attacks on exchanges. However, malicious actors were only able to siphon $282.6 million, a development that displayed a marked improvement in exchange security. Chainalysis noted, however, that they did not include exit scams or users exploiting exchange errors in this calculation.
“Under these constraints, nearly all of the hacks we didn’t include were on smaller exchanges for relatively low amounts of cryptocurrency. Our estimates of the total amount in exchange hacks are therefore likely a lower boundary, but one we believe isn’t far off from the actual total.”
The average, as well as the median amount stolen per hack, fell substantially last year, after seeing a steady rise over the three years which preceded it. Further, just 54% of the hacks observed in 2019 were reported to have stolen more than $10 million. And, while the number of individual hacks have risen, “the data indicates that exchanges have gotten better at limiting the damage any one hacker can do.”
The report also
Chainalysis also showed that hackers have responded to rising exchange security and have become more sophisticated in their methods of carrying out hacks and laundering the stolen funds thereafter. The report subsequently spoke about the Lazarus Group — an infamous cybercriminal syndicate linked to the North Korean government, believed to be responsible for the 2014 Sony hack, as well as 2017’s WannaCry ransomware attacks. According to Chainalysis, the Lazarus Group has made some significant changes to their hacking and laundering strategies.
n exchange attack this past year, Lazarus took [relying on social engineering to attack exchanges] a step further and executed one of the most elaborate phishing schemes we’ve seen to gain access to users’ funds.”
The report added,
“Exchanges have raised the bar on anti-hacking security in the last few years, but the subsequent advancements of groups like Lazarus show that they can’t afford to rest on their laurels.”
Further, the report said that exchanges have a responsibility to make sure criminals aren’t using their platform to cash out stolen funds from other hacked exchanges, suggesting that they “treat large deposits — or high volumes of small deposits in a short amount of time — from mixers or CoinJoin wallets with increased suspicion.”