Ethereum is the second largest cryptocurrency in the world based on market capitalization. However, over the past year, it has been dealing with considerable resistance in its path towards growth and development. Regulatory pressures as well as an uncertain economic climate, were naturally unable to provide the right conditions for the growth and development of the Ethereum price. However, new developments might endow the environment with the strength it needs to record more significant gains.
Proto-danksharding
Zero-knowledge proof solutions have been monumental in scaling the Ethereum ecosystem. This task allows for the creation of smoother, more seamless processes for smaller fees. During the Korea Blockchain Week event, digital finance researchers also discussed the possibility that proto-danksharding might make rollup costs considerably less expensive. The estimated value points towards figures that are ten times cheaper compared to the present.
Proto-danksharding, also known as EIP-4844, directly targets the rollups with batch data and transactions off-chain and later submits the computation proof directly to the blockchain. Linea currently delivers transactions that are fifteen times cheaper. According to documentation, the rollups are still relatively pricey due to the fact that the nodes in the Ethereum blockchain directly process call data. Later, it is stored on-chain for an indefinite amount of time. This is even though the information only needs to be available briefly.
Ethereum vault
A private key manager has recently launched a brand-new transaction relay feature that offers Ethereum users increased privacy when they have to transact currencies from their personal holdings. This new functionality has arrived as a response to the challenges the digital money environment faces in terms of security. It’s commonly understood that many scammers and hackers target cryptocurrency wallets.
Back in June 2023, the same company designed a similar custody offering for Bitcoin and has now decided to extend this feature to include Ether as well. Holders can use a mechanism that allows them to use an Ethereum pay wallet as a relay. Previously, the private key manager had assisted users with the necessary interactions between the blockchain and the Ethereum vaults.
However, the bridge comes with the permission to perform additional actions, including the deployment of contracts, without worrying about extra gas costs. This is a crucial aspect for Ethereum, as fees climbed to all-time high levels earlier in 2023, causing considerable trouble for investors who couldn’t afford them comfortably.
$24M losses
On September 7th, it was reported that a whale investor lost a whopping $24 million in staked Ethereum as a result of a phishing attack. The massive attack occurred on the platform of a liquid staking provider. The unlucky investor had lost their entire address balance a day before, on the 6th. The case is even more noteworthy when you consider that the whole hack was completed in just two transactions. Given the magnitude of the sum, that seems quite notable. During the first transaction, 9,579 stETH were extracted, with the remaining 4,851 rETH remaining for the next one. The rough equivalent at the time of the attack was $15.5 million and $8.5 million, respectively, amounting to an incredible $24M.
According to Scam Sniffer, the victim enabled token approvals by signing “Increase Allowance” transactions. These features are part of ERC-20 tokens and allow third parties to have the right to spend the tokens of a different owner through the use of smart contracts. Many crypto observers have warned about the risks of this feature since anonymous entities could use malicious smart contracts to support scamming schemes.
Nigeria’s Web3
El Salvador, the first country in the world to use crypto as legal tender, has recently announced that starting from the following year, cryptocurrency education will be introduced in public schools. Cuba has discussed the introduction of a similar program as well. Given that an ever-growing number of people are starting to turn to digital assets as a means of combating the devaluation of the fiat currencies of their home countries, the blockchain finance community believes that it is essential for users to be aware of the possible risks, as well as the intricacies of the crypto environment.
Education can create a better, safer and more ethical environment for transactions. Nigeria is another excellent example. A recent survey featuring respondents from all over the world determined that 99% of Nigerians are crypto-aware. That’s more than any population on the globe. However, the country is still facing challenges in the education field. In a recent panel focused on Web3 education, discussions focused on the current levels of knowledge about this tech in Nigeria, as well as the challenges that have appeared so far.
As the chief operating officer, Bello Usman Abdullahi said that the language barrier is the most critical issue. Given the complexity and sheer number of terms related to the blockchain, it’s almost impossible to bring everyone together. Nigeria is highly diverse from a linguistic perspective, with over 500 languages. Many local hubs have already started educating people on blockchain matters using the local languages. The educators believe that this is an integral part of changing people’s minds on the blockchain, especially in the aftermath of the anti-crypto campaign carried out by the government and central bank.
Crypto in Taiwan
Meanwhile, Taiwan has also issued a set of rules and principles aimed at those who want to operate cryptocurrency services under its jurisdiction. Taiwan is reportedly planning to place restrictions on overseas crypto exchanges that refuse to become registered. This will be part of the country’s upcoming VASPs, guidance for virtual asset service providers.
The Financial Supervisory Commission has created a rough draft of ten guiding principles for introducing and managing crypto coins in Taiwan. Among the list are increasing information disclosure, setting definitive standards to list and delist, as well as separate custody of platform and customer assets. This move is mainly addressed to eliminating the risk of money laundering. An official announcement is expected by the end of September.
The cryptocurrency market has continued to change and develop. As people worldwide begin to trust digital assets even more, there’s guaranteed to be increasing innovation.
