Monat: November 2022

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FTX’s failure is not a harbinger of crypto: Gavin Wood

  • Gavin Wood co-founded Ethereum, Polkadot and Parity Technologies among other top crypto platforms.
  • He says FTX’s implosion offers a chance for crypto to go for “decentralised, trust-free technology.”
  • Wood stepped down as CEO of Parity in October, announcing his decision allowed him to focus more on building Polkadot.

Gavin Wood, the co-founder of blockchain platform Polkadot, says FTX’s failure isn’t a precursor of what’s to come in the crypto sector. It doesn’t count for the future of cryptocurrency, (even if a setback). 

As for why, he says the collapsed exchange was a mismanaged platform that tried to hide behind a massive marketing strategy. 

FTX was a ‘mismanaged, heavily-marketed’ company

The FTX token has lost nearly 98% of its value in the past month, all because FTX happened and most people within crypto are extremely irritated that it did. Of particular concern has been the impact to millions of people who didn’t get out as it became clear the Sam Bankman-Fried led exchange was in trouble.

And then 130 FTX affiliated entities filed for bankruptcy – with all these coming just months after SBF had painted himself as crypto’s ‘white knight.’

But despite the contagion that has followed the FTX fiasco, Wood says the event is nowhere near being a ‘harbinger for crypto.’ 

According to the Polkadot co-founder, if there’s anything, FTX has demonstrated one thing: the cryptocurrency industry needs to work towards “better decentralised and trust-free technology.” Wood shared his sentiment on Friday.

“I’m sick of hearing crypto confused with a heavily-marketed centralised, mismanaged exchange. FTX’s failure is far from a harbinger of crypto. Quite the opposite: it’s a concrete demonstration of the need for more, better decentralised, trust-free technology.”

Wood stepped down as CEO of Parity Technologies, the firm he co-founded and which is behind the development of Polkadot, in October this year.

As we highlighted, the Ethereum co-founder noted his move was to help him focus more on Polkadot. He is currently the Chief Architect at Parity. Wood is also the founder of Kusama and Web3 Foundation.

The post FTX’s failure is not a harbinger of crypto: Gavin Wood appeared first on CoinJournal.

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Eco-friendly Bitcoin mining pool PEGA will launch in 2023

  • PEGA Pool is set to launch next year and will become the first eco-friendly Bitcoin mining pool in the world.
  • PEGA Mining is focused on reducing the environmental effects of Bitcoin mining.
  • Clients that join the “Early Access” waiting list would benefit from a permanent 50% reduction in pool fees.

PEGA Pool will become the first eco-friendly Bitcoin mining pool 

PEGA Pool is set to become the first eco-friendly Bitcoin mining pool and is expected to launch next year.

PEGA Pool, a platform dedicated to reducing the environmental effects of Bitcoin mining, is expected to launch in 2023. The project focuses on making Bitcoin mining eco-friendly.

PEGA Pool is owned and operated by PEGA Mining, a UK-based cryptocurrency mining firm. 

According to the development team, PEGA Pool will focus on reducing bitcoin mining’s carbon footprint to create a more sustainable and eco-friendly industry. On its official website, the company said it would plant trees to help reduce the Bitcoin mining carbon footprint.

PEGA Pool is currently in the pre-launch phase and will be open to the public in Q1 2023. Clients can join the early access waiting list until launch. The team added that the PEGA Pool is open to all bitcoin mining clients regardless of their renewable energy usage.

PEGA Pool added that for clients that mine with non-renewable energy, it would use a portion of their pool fees to plant trees to help offset their mining carbon footprint. Clients that use renewable energy to mine cryptocurrencies will enjoy certain incentives. 

For instance, clients that mine with renewable energy will enjoy a 50% reduction in pool fees. Furthermore, pool fees are 2% for non-renewable energy clients and 1% for renewable energy clients.

Clients that join the early access waiting list will enjoy certain benefits

The use of non-renewable energy to mine Bitcoin is a subject that gained wide coverage over the past few years. Companies like Tesla had to suspend accepting Bitcoin as a payment method due to concerns over its carbon footprint during mining. However, the company said it intends to start accepting Bitcoin as a payment option for its vehicles again in the future. PEGA’s effort toward ensuring eco-friendly Bitcoin mining could be what is needed to convince Tesla to start accepting BTC payments again. 

With PEGA Pool currently in its pre-launch phase, the team said clients that join the “Early Access” waiting list would benefit from a permanent 50% reduction in pool fees.

PEGA Pool said it had planted 41,715 trees so far, for an estimated annual CO2 offset of 1111T. According to their official website, the team said PEGA Pool was built by miners and is run by miners. With years of experience in the crypto mining sector, the team understands what it is that miners need in order to be successful and profitable.

The post Eco-friendly Bitcoin mining pool PEGA will launch in 2023 appeared first on CoinJournal.

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Binance releases its proof of reserves system

  • Binance’s proof of reserves system initially shows results for the flagship cryptocurrency Bitcoin.
  • The crypto exchange will add other tokens and networks as well as implement ZK-SNARKs.
  • Crypto exchanges are looking to show they have the assets they should hold after the shocking collapse of FTX.

Binance has published its proof-of-reserve (PoR) system, days after CEO Changpeng Zhao pledged to have the mechanism in place following the collapse of rival FTX.

The bankruptcy and the contagion that followed crashed the market, with Binance Coin price dropping to lows of $250. Bitcoin price also fell below $16,000, hitting its lowest level since 2020.

In response, multiple exchanges had released a snapshot of their asset reserves. But the crypto community largely noted the snapshot of assets alone wasn’t enough – there was a need to have exchanges’ liabilities also available.

Binance’s proof of reserves showed a 101% ratio

In its update on the issue, Binance has noted its users are now able to verify the exchanges holdings. As for what’s possible now, Binance announced the mechanism will initially support Bitcoin. The exchange will look to add other tokens and networks over the next few weeks.

Binance will also allow for the auditing of its proof of reserves results by third-party auditors and implement ZK-SNARKs to help bolster privacy and robustness.

“Because Binance offers Margin and Loans services, the audit results will show the Net Balance, Equity and Debt of each user, where the Net Balance = Equity – Debt,” the Binance team wrote.

A snapshot taken on 22 November 2022 at 23:59 (UTC) shows Binance’s on-chain Bitcoin balances stood at 582,485.9302, while customer net balance was 575,742.4228. The reserve ratio from the snapshot was 101%, with the margin at 6,743 BTC.

Binance customers can verify whether the exchange holds their crypto as it should.

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