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Ethereum (ETH) Miners Voting For Block Gas Limit Increase, Vitalik Buterin Proposes Another Solution

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Fri, 06/19/2020 - 13:23
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Vladislav Sopov
Ethereum (ETH) development and mining studio Bitfly revealed that miners are voting for an increase in the block gas limit. Why are Ethereum (ETH) core devs concerned?
Ethereum (ETH) Miners Voting For Block Gas Limit Increase, Vitalik Buterin Proposes Another Solution
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Many prominent contributors to the Ethereum (ETH) ecosystem believe that this solution could result in network congestion and vulnerability.

Block gas limit surges 25%

As per an announcement from Bitfly, Ethereum (ETH) miners are upvoting an increase in the block gas limit from 10,000,000 Gas to 12,500,000 Gas. This would result in a significant increase in the transactional throughput of the Ethereum (ETH) blockchain.

Ethereum (ETH) miners increase block gas limit to process more transactions per second
Image via Twitter

As a result, the Ethereum (ETH) mainnet would be capable of processing 44 transactions per second instead of the current level of 35 TPS.

However, top-level Ethereum (ETH) developers suspect that this upgrade could threaten network operations. Ethreum Foundation team lead Péter Szilágyi highlights that such behavior from miners is egoistic as they don't care about:

the long term health of the network nor about DoS attacks.

Lefteris Karapetsas, founder of the Rotki decentralized portfolio tracker added that such a rapid increase in the block size would lead to an upsurge of node volume and, therefore, would damage Ethereum (ETH) usability.

Increased block gas volume results in the issues with network operations
Image via Twitter

Also, independent Ethereum (ETH) researcher Alexey Akhunov, in a semi-ironic tweet, claimed that it is the Bitcoin (BTC) network that would benefit the most from such a controversial upgrade.

Viitalik's proposal

Ethereum Foundation co-founder Vitalik Buterin proposed increasing gas costs for some particular types of transactions. According to his tweet, fees for initiating storage-accessing transactions should be way higher.

As covered by U.Today Crypto News, new research from Glassnode detected that only 10% of Ethereum (ETH) fees are paid by owners of accounts who use Ethereum (ETH) for retail transactions.

Stablecoins, Ponzis and DeFi account for the rest of miner rewards. In general, the abuse of the network by Ponzi schemes built around Ethereum-based stablecoins has already resulted in an upsurge of gas fees.

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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.)

Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?

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Fri, 10/23/2020 - 09:24
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Vladislav Sopov
Grayscale, undisputed giant of institutional crypto investments, is celebrating another monstrous milestone, adding a nine-digit sum to AUM in 24 hours
Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?
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Grayscale is an investment company that provides the clients with an exposure to digital currency markets eliminating the need to buy tokens. The firm does it by selling shares of 'trusts' related to certain digital assets. The recently started FOMO has already brought Grayscale's 'asset under management' (AUM) values to previously unseen levels.

Grayscale assets are on steroids

In its most recent report shared in a tweet, Grayscale Investments stated that its net AUM now surpasses $7,300,000,000. Mostly, this upsurge should be attributed to the spikes of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) prices.

Grayscale adds $300M to its AUM in 24 hours
Image by Twitter

Its founder, CEO of Digital Currency Group Barry Silbert, unveiled that Grayscale’s holdings added a whopping amount of value in the last 24 hours.

Added a cool $300 million in AUM in one day

In terms of separate ‘trusts’, the most impressive increase is associated with Litecoin (LTC). Its value added almost 10% bringing its total to over $34 mln. 

Bitcoin (BTC) allocation surged above $6 bln with a 5% increase. Notorious Grayscale Ethereum Trust (ETHE) added 6% and now is valued at $942 mln.

PayPal assists Grayscale

By contrast, Stellar Lumens (XLM) and Bitcoin Cash (BCH) trusts witnessed mediocre increases of 2-3%. The only integral product of Grayscale, Large Cap Trust that unites the most valuable coins under its umbrella, therefore, added less than 4%.

The numbers of Grayscale Investments positions rocketed due to the rapid spike of crypto prices associated with PayPal’s decision to add major digital assets to its instrument toolkit.

As covered by U.Today previously, PayPal announced that Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) will be added as payment methods by the end of this year.

  

Following this surprising news, Bitcoin (BTC) revisited its multi-months high over $13,000. At press time, its price has slightly retraced and flirts with the $12,800 level.

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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.)