Crypto Currency News
Crypto currency news continues to evolve, with a number of new and interesting developments on the horizon. These include the announcement that a massive upgrade is underway for the Ethereum crypto currency, which will make it less energy-intensive. There is also a proposed rescue fund from Binance, which would be used to stave off the cascading effects of last week's market crash. Ethereum's massive upgrade to a less energy-intensive version
Earlier this year, the world's second largest cryptocurrency by market capitalization migrated to a proof-of-stake system to improve speed, security and reduce energy consumption. Although the upgrade may not be as fast as a proof-of-work system, it will be much more practical and sustainable for the average user.
The upgrade also features a new verification model that replaces miners with validators. This enables the protocol to scale to thousands of complex applications. It also means lower fees and more secure transactions.
One of the main criticisms of cryptocurrencies has been their energy usage. However, the upgrade is designed to dramatically reduce energy use on the ethereum network. By switching from the proof-of-work system to the proof-of-stake system, the amount of electricity that is required will be cut by more than 99%.
While the upgrades have not yet reached the end user, they are underway. A sharding technique will spread transactions across many “shards”, which will help to speed up transaction speeds and make the ethereum network more scalable.
Although the ethereum network upgrade has been delayed multiple times, the Merge is now in effect. It's an important moment for the cryptocurrency sector. In fact, the ether token has soared by more than 50% in the last two weeks.
As with any upgrade, the ethereum network is closely watched by enthusiasts and crypto investors. The upgrade may boost adoption and lead to future innovations. Some are predicting that the scalability of the ethereum system will increase, though not to the degree of a more traditional financial asset.
Currently, the ethereum system can handle as many as 30 transactions per second. The upgrade will allow the system to handle ten thousand more per second.
Despite the upgrade's positive effects, the ethereum network is a very expensive one to run. For instance, one single Ethereum transaction uses 181 kilowatt-hours of power. That's about the same as the power needed to run a US household for six days.
However, it's likely that ethereum's transaction fees will eventually drop. Miners will earn less coins than they currently do, so the ethereum network will become more sustainable. Insurers reluctant to underwrite protection policies for crypto companies
Insurers are hesitant to underwrite protection policies for crypto companies because they are worried about a lack of trust. Fraudulent activities from customers are a big concern. And lack of regulatory framework is another issue.
To compete with the digital players, insurers need to do more than just provide superior products. They also need to strengthen their processes and establish a rapport with their customers. These are essential components of any winning insurance company.
Blockchain technology is one way to help companies protect themselves from fraudulent activities. It enables companies to record their transactions in an encrypted database, making it difficult for hackers to make changes. Additionally, it can reduce fraud by enabling the elimination of report duplication and automating the payment process.
Another major benefit of adopting the technology is greater transparency. This makes it easier for consumers to check on their transaction histories and to detect suspicious activities.
Smart contracts can also improve customer satisfaction and streamline different processes. They can even prevent disputes.
However, insurers can't expect to get all the benefits from blockchain. Rather, they should combine the technology with other solutions to achieve better outcomes.
A good example of this is the Beazley Group's announcement of a $10 million directors and officers policy for the executives of crypto companies. While that might seem like a lot, it's still a relatively small amount compared to the $5 million coverage that many mainstream carriers offer for crypto-related risks.
Despite their concerns, many insurers are taking the necessary steps to provide the best protection to their customers. Some are putting blanket exclusions in their policies while others are starting to form internal committees to understand the space.
Crypto insurance has not yet hit the mainstream, but it is on its way. In fact, the demand for this type of cover is growing. But how can the industry keep up with the demand?
To combat this, insurers need to innovate and test new technologies. They need to incorporate new talent into their organization, and they need to let go of their slow decision-making processes. Solana's promising crypto currency before the FTX implosion
Solana is a decentralized and inflationary crypto currency that was launched in 2018. As of Q3 of 2022, Solana is ranked the top 10 crypto asset by market cap. It also has the fastest block times in the industry.
The Solana ecosystem consists of a blockchain, an off-chain data oracle, and payment and marketplace applications. Besides that, there are digital goods, gaming, lending platforms, asset management software, and more. Aside from that, Solana is governed through consensus algorithms. However, recent events such as the FTX implosion have cast a negative light on the Solana ecosystem.
Solana's token, SOL, has taken a major beating. According to reports, the two largest backers of the Solana network, Alameda and FTX, are now in bankruptcy. This resulted in a massive sell-off of the digital coin, which is now trading at less than $13 per token. best crypto referrals
Solana's main competitive advantage is the Proof-of-History consensus algorithm. The algorithm was designed to boost TPS. Additionally, it eliminates the scalability problems of competing networks.
In addition, Solana has a long-term inflationary schedule. This allows the protocol to reshape the total supply of SOL through revenue-based supply reduction mechanisms. Moreover, the protocol also creates incentive for holding SOL tokens. When a validator stakes SOL, the operator is rewarded with a portion of the transaction fees. During the inflationary process, the rate at which new token issuance is facilitated is set by the predetermined inflation schedule.
At the start of this year, the daily volume on the Solana network was around 80 million transactions. However, since then, it has dropped to 35 million. Besides that, it has seen six network outages. One of the reasons is the presence of excessive duplicate transactions.
Solana is also susceptible to attacks. The network has been targeted by multiple DDoS attacks. Nevertheless, the Solana team has maintained that the problems are largely related to excessive duplicate transactions. Despite these concerns, the team aims to continue building the network.
Another factor that has affected Solana's overall scalability is the concentration of on-chain wealth. Only a small number of addresses hold a large percentage of the on-chain wealth. This leads to a reduction in the overall network security. Binance proposes rescue fund to stave off cascading effects of last week's implosion
The CEO of Binance, Changpeng Zhao, has announced that the company plans to establish a rescue fund for the entire cryptocurrency market. A rescue fund would help crypto firms avert the cascading effects of the recent FTX implosion. However, no details are available on the size of the fund, or how it will be distributed.
The FTX bankruptcy is the latest in a string of failures by the industry this year. Users of the exchange were unable to withdraw their funds and were unable to access their accounts. In addition, retail investors were trapped in the FTX ecosystem and their funds were not accessible, as they were locked up in the company. As a result, FTX's users lost thousands to millions of dollars. This has sent the entire cryptocurrency universe into turmoil.
AUTHOR: JAZZY EXPERT – Search Engine Optimization Team Head at Linkedin