Cointelegraph enters into a strategic collaboration with Chainlink Labs to support Web3 startups

December 8, 2023 Coin Telegraph

Blockchain

Cointelegraph is excited to announce a strategic collaboration with Chainlink Labs, the primary contributing developer of the industry-standard decentralized computing platform Chainlink.

Cointelegraph is excited to announce a strategic collaboration with Chainlink Labs, the primary contributing developer of the industry-standard decentralized computing platform Chainlink. This collaboration will align the Cointelegraph Accelerator and Chainlink BUILD programs, helping drive innovation and accelerate the growth of next-gen Web3 projects.

The Cointelegraph Accelerator is a global program that supports early-stage and up-and-coming Web3 startups. As part of the collaboration with Chainlink Labs, the Cointelegraph Accelerator will provide Chainlink BUILD projects with marketing support, media strategy, social media playbooks, user acquisition guides, access to the largest industry events, and other benefits that help accelerate their growth.

On the other hand, Chainlink Labs will engage with projects under the wing of the Cointelegraph Accelerator by offering technical support, mentorship and providing access to Chainlink’s decentralized computing platform and expanding their builder communities.

Bitcoin new high set for late 2024, Binance to lose top spot, predicts VanEck

December 8, 2023 Coin Telegraph

Envision partners with HBAR and UN on new digitization platform for carbon markets

December 4, 2023 Coin Telegraph

Coin Telegraph

Envision blockchain along with HBAR foundation has teamed up with the UN to create a new suite of decentralized tech to streamline the complex carbon markets.

The 2023 United Nations climate change conference saw several new initiatives aimed at innovating the fight against climate change and streamlining the complex carbon credit markets.

The dMRV system is developed in collaboration with the UN Climate Change Global Innovation Hub and built on the HBAR blockchain.

The dMRV platform offers a suite of features that include an artificial intelligence (AI) search and Guided Search features for the United Nations Framework Convention on Climate Change’s (UNFCCC) Clean Development Mechanism (CDM) Methodology library and other standard registries across the carbon market Industry.

The CDM methodology library consists of hundreds of rulesets required to create a carbon credit, independently developed in an analog process supporting the carbon market.

The further scaling of the library of digitized and open-source methodologies allows registries, project developers, and other market stakeholders to use digital technologies to resolve trust and transparency issues.

Cointelegraph contacted Wes Geisenberger, vice president of Sustainability and ESG at HBAR Foundation, to understand the importance and working of the new dMRV platform and how it could help digitize the complex carbon credit market.

Geisenberger told Cointelegraph that the UN GIH/UNFCCC secretariat’s staff were deeply involved in methodology development, while supporting the "toughest challenges in climate negotiations.

Bitcoin maxis vs. multichains: Two opposing visions of crypto’s future

December 4, 2023 Coin Telegraph

Cosmos Hub greenlights ATOM inflation cut for security boost

November 26, 2023 Coin Telegraph

Coin Telegraph

The proposal secured a narrow passage, garnering 41.1% approval votes compared to 38.5% disapproval, marking the highest turnout vote in the Cosmos ecosystem.

The governing body of Cosmos Hub has endorsed a proposal to decrease the maximum inflation rate of its native token, ATOM (ATOM), from approximately 14% to 10%.

As per the proposal, the authorized modification would reduce Atom’s annualized staking yield from around 19% to approximately 13.4%. The Cosmos Hub is the primary blockchain within the Cosmos network, a system of interlinked blockchains. The native token of the Hub is Atom, employed for staking, governance, and transaction fees.

The proposal secured a narrow passage, garnering 41.1% approval votes compared to 38.5% disapproval, marking the highest turnout vote in the Cosmos ecosystem. Initially expected to fail shortly before the deadline, a last-minute influx of votes and some reversals from validators narrowly tilted the outcome in favor.

*Screenshot of the proposal Source: Mintscan*

The proposal contended that Atom’s elevated inflation rate, compared to similar tokens, resulted in the Cosmos Hub overspending for security. It also argued that validators could still achieve breakeven or profitability even with inflation reduced to 10%.

Zero Knowledge Validator, the entity with the most substantial vote in favor of the proposal, justified its backing on X. A post asserted, “Double-digit inflation is unnecessary for security, undermines Atom price in the long run, and discourages the use of ATOM in DeFi and other areas within the Atom Economic Zone.”

The most significant opposition vote was cast by AllNodes, a validator, as outlined in a post on X. AllNodes argued that the change could negatively impact small validators, labeling the proposal as “...an abrupt, short-sighted, and ill-researched idea that might wreak havoc on retail and businesses engaged in building, trading, and validating Atom.”

Cosmos Hub recently upgraded to launch a liquid staking module, enabling users to bypass the previous 21-day unbonding period by unstaking ATOM funds. Before the upgrade, ATOM holders had a locking period of 21 days to move their funds after unstaking the token. With the new module, staked ATOM can be used in the Cosmos decentralized finance (DeFi) ecosystem without compromising yields from staking.

Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines

Indexed Finance thwarts hijackers, set to compensate 2021 hack victims

November 26, 2023 Coin Telegraph

Coin Telegraph

In a thread on X, Laurence Day, a former core contributor, detailed the efforts of the Indexed community in overcoming two hijacking attempts on the remaining treasury of the Indexed DAO.

Indexed Finance, an Ethereum-based project that suffered a $16 million hack in 2021, has successfully thwarted two hijacking attempts. The project’s decentralized autonomous organization (DAO) control will be returned to its founders, aiming to allocate the remaining treasury to victims of the 2021 hack.

In a thread on X, Laurence Day, a former core contributor, detailed the efforts of the Indexed community in overcoming two hijacking attempts on the remaining treasury of the Indexed DAO. Both attackers acquired significant amounts of the protocol’s NDX token, aiming to take control of the DAO’s approximately $120,000 digital asset holdings through malicious proposals.

The initial proposal, lacking a title or description in an apparent effort to avoid detection, was thwarted as Day and fellow community members mobilized the Indexed DAO for votes against it. The attacker’s proposal neared approval within an hour, but sufficient 'no' votes were cast to prevent its passage.

Okay so here's what just happened to the Indexed DAO

The wreckage can be seen in the Tally panel below

This is a long thread, but I want to record it somewhere pic.twitter.com/wRTRZZcwhm
— laurence, backed by paradigm (@functi0nZer0) November 25, 2023

Nonetheless, as the Indexed team had to openly coordinate votes against the proposal, Day anticipated the possibility of a copycat attack. Additionally, as Day detailed in his thread, an additional vulnerability could jeopardize funds beyond the DAO’s treasury if the DAO ends up in unfriendly control.

To mitigate the threat of a subsequent attack, the Indexed DAO approved a 'poison pill' proposal, granting them the authority to burn the remaining treasury funds if deemed necessary to deter potential attackers.

Upon the anticipated second attack, the assailant initially sought to negotiate for 50% of the remaining treasury, as revealed in on-chain messages. Indexed founder Dillon Kellar responded by proposing $10,000 in DAI stablecoins which is issued by MakerDAO and warned of burning the entire treasury if the attacker refused.

With only four hours left until Kellar’s ultimatum, and following an attempt to counter-negotiate for $17,000, the attacker accepted the original offer and withdrew their malicious proposal. Authority over the DAO will now return to a multisig controlled by Day, Kellar, and the pseudonymous co-founder PR0, with plans to compensate victims of the 2021 hack using the remaining treasury funds.

Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines

Decentralized file sharing, explained

November 25, 2023 Coin Telegraph

Blockchain

Decentralized file sharing is a peer-to-peer network system where files are distributed across multiple nodes, eliminating the need for a central server.

The importance of decentralization in file sharing

Decentralized file sharing revolutionizes data access by eliminating dependence on centralized servers and utilizing P2P technology to distribute files across a network of nodes.

Distributing and accessing data without depending on a centralized server is possible with decentralized file sharing. Rather, files are kept on a network of linked nodes, frequently through the use of peer-to-peer (P2P) technology.

To enable file sharing, each network user can provide bandwidth and storage space. BitTorrent and InterPlanetary File System (IPFS) are two well-known instances of decentralized file-sharing protocols.

The decentralization of file sharing has completely transformed the way users access and store digital content. In contrast to conventional centralized file-sharing systems, which store files on a single server, decentralized file-sharing uses a P2P mechanism. Dispersing files among a network of linked nodes promotes a more robust and secure system.

Key components of decentralized file sharing

Decentralized file sharing depends on a number of essential elements to allow for a dispersed and safe data exchange.

Firstly, P2P networks, which enable direct user contact in the absence of a centralized server, are the backbone of a decentralized file-sharing system. By doing this, a robust system where participants directly share files is fostered.

Blockchain technology is essential to maintaining integrity and trust in decentralized file-sharing networks. It improves the general security of transactions and file transfers by enabling transparent and impenetrable record-keeping. Smart contracts are self-executing contracts with pre-established rules that automate tasks like access control and file verification.

Furthermore, files are distributed throughout a network of nodes using decentralized storage systems, which often use protocols like BitTorrent or IPFS. This approach eliminates the need for a central server and enhances the availability and reliability of data due to its redundant nature.

Cryptographic methods also protect the integrity and privacy of data. User confidence in decentralized file-sharing systems is increased by end-to-end encryption, which guarantees that only authorized parties may view the content. Together, these elements essentially provide a safe and dispersed setting for easy file sharing via the decentralized web.

How does decentralized file sharing work?

Decentralized file sharing operates on P2P networks by leveraging a distributed architecture rather than relying on a central server.

Peer discovery

Participants in the network (peers) need a way to discover one another, which is accomplished by using distributed hash tables (DHTs) or decentralized protocols. Peers build a network without a central authority by keeping track of other peers with whom they are linked.

DHTs are decentralized systems that enable distributed storage and retrieval of key-value pairs across a network, while decentralized protocols enforce communication rules that enable peer-to-peer interactions without relying on a central authority or server.

File distribution

A file is split up into smaller parts where every component is dispersed among several network peers. This approach enhances file availability, as it is not stored in a single location, ensuring better accessibility and reliability.

Dispersed storage

By distributing file portions over several nodes, decentralized storage systems lessen reliance on a single server. For instance, IPFS employs a content-addressed approach, in which files are recognized by their content as opposed to their physical location.

Peer interaction

Peers request and share file portions directly with one another. The coordination of file transfers no longer requires a central server, thanks to this direct connection. Every peer participates in the file distribution process by serving as both a client and a server.

Blockchain and smart contracts

Blockchain technology is incorporated into several decentralized file-sharing systems to increase security and transparency. Smart contracts are self-executing contracts with pre-established rules that can automate tasks such as access restriction and file verification and reward participants with tokens.

Often, decentralized file-sharing systems use cryptographic techniques like end-to-end encryption to provide privacy and security for the shared files. This ensures that the content can only be accessed and deciphered by authorized users.

Working of a decentralized storage system

Advantages of decentralized file sharing

The benefits of decentralized file sharing include enhanced resilience, improved privacy, scalability and censorship resistance.

By removing a single point of failure, it improves reliability and resilience. In a peer-to-peer network, where files are dispersed among several nodes and peers, the system continues to function even in the event that some nodes go down.

Also, decentralized file sharing, by its very nature, offers enhanced security and privacy. By ensuring that only authorized users can access and decode shared content, cryptographic solutions like end-to-end encryption help lower the danger of unauthorized spying or data breaches.

Better scalability can also be attained as the network expands. In decentralized networks, more users add to the network’s capacity, allowing it to accommodate more demand and traffic without requiring modifications to the centralized infrastructure.

Additionally, decentralized file sharing encourages resistance against censorship. It is harder for any organization to censor or limit access to particular files or information because there isn’t a single entity in charge of the network.

Furthermore, decentralized file sharing frequently incorporates incentive mechanisms through token economies or other reward systems to encourage users to contribute resources like bandwidth and storage, thereby creating a cooperative and self-sufficient environment.

Challenges and limitations of decentralized file sharing

Challenges associated with decentralized file sharing involve scalability issues, consistency concerns, user adoption complexities, security risks and regulatory uncertainties.

Firstly, as the network grows, scalability issues become more pressing. A poor user experience may result from increased involvement if it causes slower file retrieval times and greater bandwidth requirements.

Moreover, in decentralized systems, problems with consistency and coordination could surface. It may be difficult to maintain consistency in file versions throughout the network in the absence of a central authority, which could result in conflicts and inconsistent data.

Complicated interfaces and user acceptance present another difficulty. When compared to centralized options, decentralized file-sharing platforms frequently have a higher learning curve, which may put off consumers who are not familiar with P2P networks or blockchain technology.

Furthermore, security vulnerabilities still exist, especially in the early phases of decentralized file-sharing deployments. As these systems grow more widely used, they are targeted by different types of attacks, which makes the continuous development of strong security measures necessary.

Regulatory uncertainty is another difficulty. The adoption and long-term viability of decentralized file-sharing platforms may be impacted by the changing legal environment surrounding cryptocurrency and decentralized technology.

The future landscape of decentralized file sharing

The future of decentralized file sharing involves blockchain technology, P2P networks and tokenization for secure, efficient and collaborative data exchange, which challenge traditional models.

Decentralized file sharing is expected to bring about a more inclusive, secure and productive environment. Distributed ledger and blockchain technology will be essential in guaranteeing tamper-proof and transparent transactions and facilitating file sharing among users without depending on centralized intermediaries.

Decentralized protocols powering peer-to-peer networks will enable direct data transmission between users, cutting down on latency and reliance on centralized servers. Strong encryption techniques will allay privacy concerns and provide consumers with more control over their data.

Furthermore, tokenization could encourage resource sharing among users, resulting in the development of a collaborative ecosystem. Innovative file-sharing services will probably proliferate as decentralization gains pace, upending established paradigms and promoting a more robust and democratic digital environment.

Yearn.Finance token tumbles 43%, community speculates on exit scam

November 18, 2023 Coin Telegraph

Coin Telegraph

Yearn.Finance's YFI token crashed over 43% in just five hours, after rallying almost 170% in November.

Yearn.Finance's governance token (YFI) plummeted over 43% in just five hours on Nov. 18 after rallying almost 170% early in the month, stirring fears about a possible exit scam.

During the dramatic drop in value, over $300 million was wiped out in market capitalization from November's gains, according to data from CoinMarketCap. At the time of writing, the YFI token is trading at $9,069 from $14,185 a day before. However, the token is still up 83% over the past 30 days.

The sell-off has triggered another weekend of fear, uncertainty and doubt (FUD) within the crypto community. On X (formerly Twitter), some users claim that 50% of the token supply was held in 10 wallets controlled by developers. However, Etherscan data suggests that some of these holders may be crypto exchange wallets.

*YFI token holders on Nov. 18, 2023. Source: Etherscan*

In addition, some X's users pointed out that opening short positions may have triggered the move. Data from Coinglass shows a jump in YFI open interest, indicating that traders are shorting the coin after November's gains.

"I bought the dip… someone sold 1000 coins perhaps that’s why it dropped massively. Will see," commented a trader on X. According to another user, YFI's price movement after the decline is unusual for exit scams:

"Doesn’t look like rugpull at all. Cuz inspite if so much sell off price is still stable at 9k which is 80% above its bottom."

Yearn.Finance is a decentralized finance (DeFi) protocol that provides automated trading solutions for DeFi markets. Andre Cronje, an Ethereum developer and entrepreneur, launched the protocol in July 2020. Cointelegraph reached out to Cronje and Year.Finance but did not receive an immediate response.

Magazine: Beyond crypto — Zero-knowledge proofs show potential from voting to finance

Ethereum L2 Starknet aims to decentralize core components of its scaling network

November 16, 2023 Coin Telegraph

Blocks

Starknet has laid out its roadmap to begin decentralizing core components of its Ethereum L2 scaling network to defend against censorship and improve robustness.

Ethereum layer-2 scaling network Starknet has outlined plans to improve the decentralization of three core components of its zero-knowledge (ZK) proof rollup solution.

Speaking exclusively to Cointelegraph, Starknet product manager and blockchain researcher Ilia Volokh outlined the firm’s intent to address certain centralized elements of its protocol aimed at defending against censorship and making its system more robust.

Starknet operates as a validity rollup using ZK-proof technology to bundle transactions, with cryptographic proofs submitted to Ethereum to achieve security and finality for layer-2 transactions.

According to Volokh, Starknet’s protocol remains dependent on StarkWare for creating L2 blocks, computing proofs and initiating layer-1 state updates to the Ethereum blockchain.

“In this sense, the operation of the network is centralized. This is not necessarily a bad thing because although Starkware operates the network, it cannot steal money and can’t do any invalid state transitions because they require executing the verifier on Ethereum,” Volokh explained.

While Starkware remains a “centralized gateway” to enter Starknet, Volokh added that the protocol is “100% honest” and cannot falsify transactions or information, as Ethereum’s layer-1 blockchain acts as a filter.

The only tangible way in which Starknet can “misbehave” is either by being idle in not relaying proofs to Ethereum or by specifically censoring certain parties from including transactions or proofs.

“For example, if the sequencer decides to exclude a transaction from a particular entity, they’re free to do so. As long as the other things that they are trying to promote are valid.”

For Starknet, the latter consideration is part of the main reason to decentralize parts of its protocol in an effort to combat two main causes of censorship in consensus-based systems.

Intentional censorship is one consideration, while “non-robust” systems that have a single point of failure present another threat to decentralization, given that all network participants would be “censored” if this central point caused a network or system outage.

“We want to solve both of these problems, and we think the obvious solution to both of them at the same time is to have as many people operating Starknet as possible.”

Decentralizing these different components of Starknet’s system entails varying degrees of difficulty. This includes decentralizing block production through its consensus protocol, decentralizing the proving layer, which is in charge of computing proofs for blocks and decentralizing the process of L1 state updates.

“I want to emphasize that it’s crucial to decentralize each of them because as long as even one of them is centralized, you haven’t achieved much,” Volokh added before unpacking the relevant challenges of each component.

Decentralizing block production has been fairly straightforward given that all blockchains rely on a consensus protocol and sybil-resistance mechanism. Meanwhile, decentralizing Starknet’s prover has required a more novel approach.

“As far as I know, we’re the first rollup that has come out with a fairly complete and concrete solution,” Volokh said. He also went on to unpack how competing ZK-rollups all essentially aggregate transactions into proofs and post them on Ethereum, which by extension transfers its own decentralization to rollup solutions.

However, these systems all rely on respective central entities to create and prove blocks, which means these layer 2s are “equally centralized.” Whether end users are concerned about the philosophical implications of the centralized components of L2s is another conversation altogether for Volokh:

“The people who appreciate decentralization do so because they understand that it gives more security, and we share those values more than we think people will like them for commercial reasons.”

Volokh added that Starknet is still in the process of outlining the process of testing and implementing these decentralized mechanics in its network. This is likely to be carried out through a series of interconnected testnets to test the simultaneous functionality of the different components.

Magazine: Here’s how Ethereum’s ZK-rollups can become interoperable

Microsoft, Tencent and other tech giants join decentralized Infura network

November 15, 2023 Coin Telegraph

Coin Telegraph

Infura said the partnerships mark a major milestone in decentralizing and making its network more censorship-resistant.

Microsoft, Tencent and 16 other Web2 giants have partnered with Consensys on its mission to decentralize the Infura network — the key point of access to Ethereum for much of the decentralized finance (DeFi) sector.

The partnerships aim to increase decentralization on the Infura network — key to preventing outages of the Web3 services that leverage it, including the wallet service MetaMask.

Speaking to Cointelegraph, DIN senior product manager Andrew Breslin said the significance of the partnerships was less about “who they were” and more about the big-name firms aligning with Infura in “wanting to decentralize every layer of the blockchain infrastructure stack.”

Scheduled for a Q4 launch, the DIN stands as a solution to the problem of centralization for Infrua, with the network currently controlled by Consensys — meaning that there remains a single point of failure.

“The cost and complexity involved with running a service like Infura was kind of limiting in terms of who we could partner with to serve this traffic,” said Breslin. “Now there’s this huge flourishing ecosystem of Web3 infrastructure providers that can provide a service that’s complimentary to Infura.”

Breslin said one of the first major features offered in the DIN is “failover support” for the Ethereum and Polygon networks. Failover support means that in an outage, traffic can be re-routed to one or multiple DIN partners, guaranteeing higher uptime rates in the long run.

Upon launch, the DIN will allow for more reliable and censorship-resistant access to Ethereum as DApps won’t need to rely on a single service provider located in just one place, Breslin said.

️ Infura, alongside our partners, is pushing the boundaries of decentralization.

We're making a significant stride in the development of the Decentralized Infrastructure Network (DIN), Read the two-part series
— Infura (@infura_io) November 14, 2023

Developed by the blockchain software giant Consensys, Infura offers a development suite that provides API access to the Ethereum and IPFS networks. At present, Infura is the access point for most DApps to access real-time on-chain data from the Ethereum blockchain.

In November 2020, the centralization issue came to light when the MetaMask wallet stopped working due to Infura suffering a temporary outage. Several centralized exchanges and DeFi projects were also affected by the downtime.

Decentralizing blockchain data providers on the Infura network is critical for censorship resistance in the long term because, at present, centralized data providers can be shut down with a single well-planned attack or sufficient legal action.

Speaking to the roster of newly announced partners, Breslin said the current lineup was not a closed set and that Infura wanted to let other “highly reliable” internet infrastructure providers know that Infura is open to them joining the DIN as well.

“The success of DIN is reliant on us collaborating with more and more operators over time.”

The cohort of new companies is working with Infura in what Breslin called the “federated phase” of the DIN — a temporary trial period where the network remains centralized.

“Infura and these 18 partners are now participating in this federated phase of DIN, which means that we work as equal partners,” said Breslin.

In the future, Breslin said the DIN would ideally be governed as a decentralized autonomous organization (DAO) or some other type of governance structure that ensures each partner has a democratically weighted say in the direction of the network.

Magazine: Beyond crypto — Zero-knowledge proofs show potential from voting to finance

Decentralization

Bitcoin new high set for late 2024, Binance to lose top spot, predicts VanEck

Envision partners with HBAR and UN on new digitization platform for carbon markets

Bitcoin maxis vs. multichains: Two opposing visions of crypto’s future

Cosmos Hub greenlights ATOM inflation cut for security boost

Indexed Finance thwarts hijackers, set to compensate 2021 hack victims

Decentralized file sharing, explained

Yearn.Finance token tumbles 43%, community speculates on exit scam

Ethereum L2 Starknet aims to decentralize core components of its scaling network

Microsoft, Tencent and other tech giants join decentralized Infura network

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