Bitcoin Foundation’s Gavin Andresen Unveils Surprising Proposal for Bitcoin (BTC) Scaling

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Sat, 06/13/2020 - 14:37
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Vladislav Sopov
The Bitcoin (BTC) network scalability problem has only two mainstream solutions that allow for the processing of some data off-chain – the SegWit and Lightning Network.
Bitcoin Foundation’s Gavin Andresen Unveils Surprising Proposal for Bitcoin (BTC) Scaling
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The Bitcoin (BTC) network has extremely low bandwidth by default. To upgrade the quantity of transactions it can process per second, Bitcoin (BTC) developers have implemented some technical add-ons. Wrapped Bitcoins (wBTC), a Bitcoin (BTC)-pegged asset on the Ethereum (ETH) network, may help solve this problem another way.

Ethereum (ETH) 2.0 May Solve Bitcoin's Scalability Problem

Gavin Andresen, Founder of the Bitcoin Foundation and the Network Lead Developer of BTC since 2010, identified three steps that can upgrade Bitcoin's scalability. Wrapped Bitcoins (wBTC) on the Ethereum (ETH) 2.0 network are the best instruments, Mr. Andresen assumes.

Gavin Andresen in Ethereum (ETH) usage in Bitcoin (BTC) scalability
Image via Twitter

According to him, once the Proof-of-Stake (PoS) version of Ethereum (ETH) is rolled out, Bitcoiners may start wrapping their assets to wBTC, which are ERC-20 tokens. Eventually, all Bitcoin (BTC) transactions may be transferred to the Ethereum (ETH) 2.0 blockchain.

Mr. Andresen admits that the Ethereum (ETH) migration to its Proof-of-Stake itself isn't easy at all. Neither is the process of wrapping all Bitcoins (BTC) that are in circulation. However, in 1-3 years, this process will happen. In terms of quantity, the wrapped Bitcoin (BTC) transactions may surpass Bitcoin (BTC) transfers on the main chain.

Despite the fact that wBTC isn't a novelty in the blockchain segment, it is one of the first proposals to use to scale the Bitcoin (BTC) network.

Community Impressed

This extravagant approach excited proponents of several blockchains and started to highlight that their products may scale better than Bitcoin (BTC) with wBTC.

Antiprosynthesis, one of Ethereum's core developers, thinks that avoiding Bitcoin (BTC) altogether is the best scalability solution.

There's a simpler way: 1. Scale Ethereum 2. Use ETH. No need for risky/costly bridges.

Some DeFi developers expressed their opinion that with decentralized protocols, the problem of Layer-1 scalability will be solved without such a sophisticated migrations.

Calvin Ayre, the infamous lawyer of the Fake Satoshi Craig Wright, recommended Mr. Andresen to trade all his Bitcoins (BTC) against Bitcoin SV (BSV), which is backed by Wright and Ayre since 'BSV already scales'.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

News
Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)