Ether, XRP Rise to 1-Month Highs While Bitcoin Falls
Demand for alternative cryptocurrencies has seen their performance rise over the last 24 hours despite bitcoin’s (BTC) failure to take another leg up.
It raises the question as to whether the “alt season”, a period where alternative crypto sees considerable growth regardless of BTC’s performance, is finally here.
Ether (ETH) and XRP (XRP) rose between six to 10 percent on the day backed by solid demand seen in large 24-hour trading volumes.
The event marks a divergence from recent weeks with BTC’s dominance rating, a share of the total crypto market value, having hit a 30-month high above 70 percent earlier this month.
That number has since dropped to 68.3 percent as interest in alternative cryptos begins to pick up once more.
As seen above, both XRP and ETH experienced swift rallies in their price between 10 pm on Sept. 17 and 3:00 am Sept. 18, while BTC was down 1 percent over the same period.
Other notable crypto assets such as Stellar (XLM), Binance Coin (BNB) and Litecoin (LTC) are also up between 2.5 and nine percent.
The total market capitalization of all crypto, excluding BTC, also rose by more than $5.4 billion over 24 hours, while total trading volume was up $7.2 billion.
It could be a sign that investors are growing wary of any further potential gains in BTC’s growth and looking elsewhere, given that its price has remained within a $300 range for nearly 2 weeks.
Disclosure: The author holds no cryptocurrency at the time of writing.
XRP, ETH and BTC image via Shutterstock; charts via Trading View
Android Tool Lets You Check Crypto Payment Apps for Double-Spends
The risk of double-spending has traditionally been a major obstacle to creating and fully using digital money. A flaw of this kind would be detrimental to the credibility of any system claiming to provide universal solutions to the financial needs of our era. Whoever created Bitcoin elegantly solved the difficult task, but a growing ecosystem of related products and services comes with new threats and resurrects the challenge. It isn’t Bitcoin’s fault, but the danger is nevertheless present and a solution is needed.
Paynoway Tests Cryptocurrency Payment Applications
Developers have been working to protect you from some of the risks associated with products that expand the usability and utility of decentralized cryptocurrencies. The creators of a mobile application called Paynoway insist “double-spending is no longer a theoretical possibility but a practical reality.” They are offering software that allows you to verify transactions made through third party apps.
Most of the end-user applications widely available today leave their users vulnerable to being defrauded via double-spend attacks, the developers point out. “Paynoway is a tool that you can use to test the applications that you, or your business, depend on to accept on-chain cryptocurrency payments,” the team behind the app explains.
The tool has been developed specifically for Android-based devices and is currently available for free download in the Google Play store. The version that can be installed right now is the app’s initial release. According to the description, the application is still in development but users have been invited to try it and provide feedback.
In its Github repository, Paynoway is described as a mobile app for testing payment systems against double-spend attacks. The program allows users to provide the details of a cryptocurrency transaction and check if it involves double-spending.
Paynoway produces reports about the tested transactions listed with their IDs as well as resolutions corresponding to each individual transfer of digital funds. The type of a transaction is determined as a “payment” or a “double-spend,” and its status is marked as “confirmed” or “invalid” respectively.
Understanding Double-Spends With Crypto
Double-spending in the context of Bitcoin may occur when a user attempts to make more than one transaction with the same amount of money. And since this involves digital files that are generally easier to duplicate, someone may be tempted to try and pay more than once with the same bitcoin.
In peer-to-peer transfers, a user can attempt to broadcast two transactions, both of which will go into the unconfirmed transactions pool. But when these transactions are taken out and put into the blockchain they are checked for their validity and the second one won’t get confirmed.
When both transactions are validated simultaneously, two branches of the blockchain occur and a race between them begins. The first transaction to be confirmed in a block wins over the other. The more confirmations a transaction receives, the safer it is to consider complete.
Crypto payment applications provide businesses and individual users with much needed faster transfers which may involve accepting transactions with fewer or even zero confirmations. However, it’s not always guaranteed that a wallet, for example, will be able to detect both the original payment and a double-spend. And that’s where apps such as Paynoway can be useful.
What is “Ethereum Spoon” Athereum?
Ethereum is one of those cryptocurrencies which people seemingly like to fork. There has been the creation of Ethereum Classic, albeit a new fork could occur at the next major network upgrade as well. In the meantime, there is the Athereum project, which labels itself as a “spoon” of Ethereum.
In this world of cryptocurrencies and blockchain technology, there are many ways to copy an existing project and making further additions or improvements. Forking is the most common approach. This method takes the existing codebase of a blockchain and introduces its own protocol and changes at a certain network block height. From that point forward, both projects can co-exist without any problems. That is, assuming the developers take the necessary precautions to avoid any potential issues on the network.
Spooning a cryptocurrency or blockchain is slightly different. It is labeled as creating a “friendly fork” rather than one which occurs under far less amicable circumstances. Ethereum now has such a “spoon” in the form of Athereum. It is quite interesting to see developers take this completely different approach, although the end result is not necessarily all that exceptional. Further growth in the cryptocurrency space is always a good thing, thus no method or ideology should be left unturned.
Athereum in a Nutshell
As one would expect, Athereum takes a few promising elements of Ethereum and adds its own flavor to the mix. The goal is to benefit from the applications and developer tools developed for Ethereum. This includes support for MyEtherWallet, Remix, Metamask, and others. Athereum will also introduce its own Avalanche consensus protocol, which operates very differently from how Ethereum works under the hood today.
The testnet of Athereum has been launched on AVA. This particular platform focuses on high performance, scalability, customization, and modularity. Developers can create their own subnetworks, of which Athereum seems to be one. As a result, this spoon will benefit from all the functionality built into the Ethereum Virtual Machine. It will not use Ether as a currency, but rather Ather, or ATH. Holders of Ethereum are also eligible for an ATH amount equal to their current ETH holdings.
Not a “Competitor”
It is interesting to note Athereum has zero intentions of directly competing with Ethereum. Instead, this subnetwork will give dApp developers an extra option to run their creations at a higher throughput and with faster finality. This should, in an ideal situation, lead to more development and research of decentralized applications as a whole. That would be good news for both Athereum and Ethereum, as well as other ecosystems providing dApp support and functionality.
Ethereum 2.0 and 1.0 Chains Will Likely Co-Exist in the Beginning, Have Different Prices
Everyone is excited by the prospects of Ethereum 2.0, but the transition towards this new chain will prove complicated. It seems very likely that both ETH 1.0 and ETH 2.0 will be trading simultaneously and exist as separate tokens for a time.
Let’s think back to 2016—it was the year of the DAO hack when 3.6M ETH was stolen. The consensus then, among a large portion of the community, was to conduct a hard fork. Ethereum (ETH) today is essentially a forked version of the original chain due to this controversy, and the leftover chain became what is known today as Ethereum Classic (ETC).
ETH 2.0 v. 1.0: A Repeat of 2016?
Once Ethereum 2.0 is rolled out officially, the leading smart contract platform will find itself at a similar crossroads. Could we have a situation where ETH 1.0 and ETH 2.0 co-exist, with different prices on exchanges, during this awkward transition period? If we are to learn anything from the DAO hack and how it created both Ethereum Classic and Ethereum, this seems not only possible but likely.
As grubles (@notgrubles) brings up on Twitter, this has played out before in 2016 and we need to be cognizant of the fact that it may happen again. ETH 1.0 will arguably still trade after the beginnings of ETH 2.0 are rolled out—and, with each chain being separate, we could see two different ETHs trading on exchanges for a while. This means that we would have ETH 1.0, ETH 2.0, and ETC all trading at the same time.
Vitalik Buterin has claimed that the ETH 1.0 chain will “technically continue” but will die out due to being “valueless.” However, in the beginning, ETH 2.0 will effectively be ‘valueless’ because phase 0 won’t support the full extent of the network at the start. We will likely see some confusion which will be reflected in chaotic market prices of ETH 1.0 tokens and the new ETH 2.0 tokens.
Grubles even goes as far as to claim that “ETH2 will be valued less [than ETH1] for a relatively long time” because of phase 0 being useless in the beginning.
The Road Forward Will Prove Difficult
Let’s not mince words: Ethereum 2.0 is desperately needed if Ethereum ever wants to be viable on a commercial level, and create applications that can benefit the world. As of now, Ethereum has failed to scale which has caused considerable headaches for enterprises wishing to use the network.
However, the transition to this much-needed upgrade will be rocky. One cannot unilaterally stop the trading of Ethereum 1.0. This means that there will be some inevitable tension between the new Ethereum 2.0 and the old chain.
So, Ethereum developers should acknowledge this problem, and confront it head-on, rather than assuming that the Ethereum 1.0 chain will just ‘die out.’ It won’t.