Exploring the tech behind crypto one block at a time |
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Hi, Bradley Keoun here, editor of The Protocol. Digital-asset markets are heating up, especially for blockchain tokens. In this week's issue, we highlight November's 19% jump in the CoinDesk Smart Contract Platforms Index (SMT), the biggest gain in 10 months. Hype is creeping back in too. Our Sam Kessler takes a look at the drama surrounding Blast, the latest entry to the growing competition among Ethereum layer-2 blockchain networks.
We're also covering BanklessDAO's "education" proposal, Vitalik Buterin's verbosity, Wormhole's $225 million raise and Bitcoin "mempool sniping."
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BANKLESS BRAND-LASH: In crypto it's never too early to call a trend. And lately, based on a grand total of two data points, various research and educational outlets are trying to get millions of dollars from the layer-2 blockchain project Arbitrum's treasury. So far, they're face-planting. The latest effort came courtesy of BanklessDAO, which submitted a proposal to Arbitrum's affiliated DAO for about $1.8 million in ARB tokens to fund a year-long education initiative, according to a CoinDesk report this week. The cost of the proposal sparked criticism on social media, but also led to aspersions against Bankless HQ, a crypto media outlet whose co-founders started the DAO though now claim to be "hands off." Damage control ensued. The episode bears an uncanny resemblance to The Protocol's account just a couple weeks ago of a separate attempt led by the research arm of crypto media firm Blockworks to get more than $2 million in ARB. That proposed expense was compared with the fees that might be paid to "Harvard lawyers." It was later shot down by Arbitrum community voters. As to the BanklessDAO fracas, Bankless HQ's leaders are now seeking to "clarify branding separation." The prolific Ethereum co-founder Vitalik Buterin penned a dissertation about his "warm but nuanced" feelings about "techno-optimism." The Defiant's Cami Russo summarized Buterin's philosophy as advocating for a "deliberate and balanced path in technological development." CoinDesk's Daniel Kuhn noted that the essay was "extremely aphoristic, and only slightly repetitive." Here's a sample of the 10,000-plus-word piece: "There are certain types of technology that much more reliably make the world better than other types of technology…. The world over-indexes on some directions of tech development, and under-indexes on others." Sold-out mint of "OrdiBots" augmented-reality Ordinals collection on Magic Eden touches off discussion of Bitcoin "mempool sniping," and whether the "front-running" technique might soon become a matter of a "few clicks" on a website.
Avalanche's Emin Gün Sirer teases "sneak peak" of AvalancheGo performance optimizations, including "optimistic probabilistic sampling" and "Warp Messaging."
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| Crypto mixer "Sinbad" sanctioned by U.S. Treasury, based on allegations it supported transactions tied to the North Korean state-sponsored hacking group Lazarus Group; FBI and Finnish police seize website. KyberSwap offers 10% bounty to attacker who made off with $50M; according to Messari, some $20 million were stolen from the project's Arbitrum deployment, $15 million from Optimism and $7 million from Ethereum. U.S. treatment of CZ, Binance is "absurd," when compared with the handling of how prosecutors have handled cases of similar magnitude against Wall Street firms, writes former BitMEX CEO Arthur Hayes, himself no stranger to such matters. CoinDesk's Nikhilesh De adds his two cents here on "Binance's Future and Other Questions Post-Settlement." Bitcoin's anti-censorship ethos surfaces after mining pool F2Pool acknowledges "filter." Hamas, Hezbollah now prefer Tron to Bitcoin, Reuters reports. |
| Highlighting blockchain tech upgrades and developments. |
| BNB Chain developers are looking to more than double the transaction speed and slash network fees by 90% as part of a new technical roadmap for layer-2 network opBNB, a representative shared with CoinDesk over email. ARPA Network's random number generator (RNG), Randcast, has launched on Base, the layer-2 chain created by Coinbase, according to the team: "Following a recent integration with Optimism, Randcast is expanding its reach by adding new blockchains to reach a wider number of users and developers in an effort to create immersive online experiences." Chainlink, the biggest blockchain oracle project, announced that the "v0.2" upgrade of its native staking mechanism is now live. According to a press release: "V0.2 features an expanded pool size of 45 million LINK in total, representing 8% of the current circulating supply, increasing the accessibility of Chainlink Staking to a more diverse audience of LINK token holders." Pimlico, a ERC-4337 infrastructure provider, which recently closed a $4.2 million seed funding round led by a16z crypto, is integrating Safe accounts via the newly launched ERC-4337 module from Safe, the smart account infrastructure provider.Movement Labs announced the launch of M2, "the first Move Virtual Machine L2 for Ethereum, scaled with Celestia as modular DA," according to the team. |
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Blast's One-Week, $600M Haul Shows Promise of Yield, Pitfalls of Hype |
Blast founder Tieshun "Pacman" Roquerre is suddenly fending off the critics. (Creative Commons, modified by CoinDesk) |
On its face, the idea behind Blast doesn't seem so objectionable: a layer-2 blockchain atop Ethereum that pays interest to depositors – a differentiator that might help a new player stand out versus the current market leaders, Arbitrum, Optimism and Base, or against dozens of other competing networks. Clearly there's something attractive about the proposition, because in just a week since the project was unveiled, some $603 million has flooded into Blast, an amount that would immediately rank the project as the third-biggest Ethereum layer-2 network. By comparison, Base, backed by the prominent U.S. crypto exchange Coinbase, has amassed just $582 million since its launch a few months ago, a much slower rate of deposits that was nonetheless considered a coup when the chain launched. But Blast's marketing pitch has attracted critics alongside the crypto dollars, including a public scolding from a key financial backer, the venture-capital firm Paradigm, over how the project went about its splashy introduction. "Much of the marketing cheapens the work of a serious team," Dan Robinson, a researcher at Paradigm, wrote on X.
Robinson's thread marked a rare instance in which a major venture firm publicly rebuked one of its own portfolio companies. Robinson expressed strong disagreement with Blast's approach of accepting deposits into a token bridge – currently just a glorified Ethereum multisig wallet – before launching a real network, and without allowing withdrawals.
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Regulatory, Policy and Legal |
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CoinDesk Smart-Contract Platform Index Gains Most Since January |
(Tracy Stephens/CoinDesk Indices)
At least in the eyes of digital-asset traders, crypto winter appears to be over, and crypto spring in full bloom. Bitcoin (BTC) has climbed 11% in November, its third straight monthly gain, and native tokens from major blockchain projects are now pumping as well. The CoinDesk Smart-Contract Platform Index (SMT) is up 19% on the month, the biggest jump since January. The leaders were Sei's SEI and Axelar's AXL, each doubling in price. Ethereum's ether (ETH) rose 13%, the most in seven months. All but one of the SMT's 47 members were in the green for the month; Qtum's QTUM was the laggard, losing 2.7%.
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Consensus Ain’t for Devs?! Here’s Why You’re Wrong |
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