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Blockchain

Benchmark Protocol to Revolutionize DeFi Space

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Built on the Ethereum Blockchain, the Benchmark Protocol aims to change the weak points of the DeFi space and connect traditional finance with the cryptocurrency market.

The Inventor of the Benchmark DeFi project, a top Citibank executive, defines it as a “Supply Elastic Collateral and Hedging Device”. Accordingly, the protocol is designed to run on the VIX Volatility Index, with its token called MARK, pegged to the Special Drawing Rights (SDR).

Introduced as a Fair Launch, the Benchmark launchpad attracted several investors in the first weeks with word of mouth instead of Initial Exchange Offerings or Initial Coin Offerings, which usually fail in the long run. The Benchmark protocol reached a total of $34 million in just the first three weeks. After successfully culminating the Fair Launch, Benchmark transitioned their rewards structure from the Launchpad to The Press, where Liquidity Providers can earn 60-100% APY.

Connecting Traditional Finance to Crypto Markets

One essential point of the Benchmark Protocol is reducing inflation inherent in traditional fiats and expanding the exposure of the DeFi space to global markets. To achieve this, the MARK token supply relies on the deviations from the target Peg and the VIX data.

Unlike other stable-coins which are only based around the US dollar, Volatility Index data and the SDR can bring value to the DeFi space. The VIX provides investors with a better window of opportunities to trade the future direction of the expected volatility of the S&P 500 Index. Likewise, by relying on the SDR, the inflation adjustment doesn’t adhere to just one currency, but five, providing more exposure, stability and consistency.

The Special Drawing Rights is a unit of account created by the International Monetary Fund (IMF) and it’s a composite of several fiats: the US Dollar, the Pound Sterling, the Japanese Yen, and the Yuan. The IMF uses the SDR as an international reserve currency.

As a result, MARK becomes the first adaptive token that can potentially amplify the functionalities of the DeFi space. Being an ERC-20 token, the MARK provides inherent utility value. Most important, supply rebalances are quick and predictive, reacting to the Volatility Index. Benchmark Protocol executed its first supply adjustment on December 28th, 2020. Rebalances occur on New York Stock Exchange trading days within a 5-hour window after the settlement of CBOE VIX contracts.

Elastos Community Exploring the Benchmark Protocol

The Benchmark Protocol is offering opportunities for several investors and financial institutions since its launchpad. Elastos, a platform for Decentralized Applications – dApps – is currently exploring Benchmark protocol to enhance payment methods and other areas in the DeFi ecosystem.

According to the report, the Elastos community believes that adaptive tokens could enhance peer-to-peer – P2P – finance and payment methods. The firm is looking to address several problems within the DeFi ecosystem, like the disadvantages of collateral-backed stable-coins and the need for cross-chain adaptive supply tokens.

Additional strategic partnerships include collaboration within the bZx ecosystem, plans on utilizing RenVM to ensure the protocol can excel in a cross-chain environment, and the start of integration into the Solana network.

Problems with Collateral-back Stablecoins

The stablecoin scheme is highly centralized. The need for third parties, such as suppliers, custodians, and the project shows this centralization. Besides, audit processes are expensive and time-consuming, due to how intricate the operating system can be.

Stablecoins also carry the risk of liquidations if the collateralized asset loses value, a fundamental problem with over-collateralized stablecoins.

There’s always the risk of governments launching their stablecoins, hence, making worthless the original concepts of privacy and the P2P economy. One example is China’s first digital sovereign currency: the Digital Currency Electronic Payment (DCEP), with ATMs all over the country.

Regulations from governments are another issue, as standard stable-coins face more pressure from the US government every day. Such is the case with Tether and the Stable Act – a bill that seeks banking licenses for these currencies.

Altcoin News, Blockchain News, Cryptocurrency news, News

José Oramas

I’m a finance journalist and copywriter with a keen interest in the fintech field. I have keen on blockchain technology and cryptocurrency and I believe it can reshape the way we see money and financial freedom.

Source: http://feedproxy.google.com/~r/coinspeaker/~3/4Fll0y_JmT8/

Blockchain

Bitcoin Proponents Against Elon Musk Following Heated Dogecoin vs Bitcoin Tweets

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Last week, Elon Musk and Tesla shocked the entire crypto industry following an announcement that the electric car company will no longer accept bitcoin payments for “environmental reasons.”

A Hard Pill For Bitcoin Maximalists

Giving its reasons, Tesla argued that Bitcoin mining operation requires massive energy consumption, which is generated from fossil fuel, especially coal, and as such, causes environmental pollution.

The announcement caused a market dip which saw over $4 billion of both short and long positions liquidated as the entire capitalization lost almost $400 billion in a day.

For Bitcoin maximalists and proponents, Tesla’s decision was a hard pill to swallow, and that was evident in their responses to the electric car company and its CEO.

While the likes of Max Keiser lambasted Musk for his company’s move, noting that it was due to political pressure, others like popular YouTuber Chris Dunn were seen canceling their Tesla Cybertruck orders.


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Adding more fuel to the fire, Musk also responded to a long Twitter thread by Peter McCormack, implying that Bitcoin is not actually decentralized.

Musk Working With Dogecoin Devs

Elon Musk, who named himself the “Dogefather” on SNL, created a Twitter poll, asking his nearly 55 million followers if they want Tesla to integrate DOGE as a payment option.

The poll, which had almost 4 million votes, was favorable for Dogecoin, as more than 75% of the community voted “Yes.”

Following Tesla’s announcement, the billionaire tweeted that he is working closely with Dogecoin developers to improve transaction efficiency, saying that it is “potentially promising.”

Tesla dropping bitcoin as a payment instrument over energy concerns, with the possibility of integrating dogecoin payments, comes as a surprise to bitcoiners since the two cryptocurrencies use a Proof-of-Work (PoW) consensus algorithm and, as such, face the same underlying energy problem.

Elon Musk: Dogecoin Wins Bitcoin

Despite using a PoW algorithm, Elon Musk continues to favor Dogecoin over Bitcoin. Responding to a tweet that covered some of the reasons why Musk easily chose DOGE over BTC, the billionaire CEO agreed that Dogecoin wins Bitcoin in many ways.

Comparing DOGE to BTC, Musk noted that “DOGE speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.”

Max Keiser: Who’s The Bigger Idiot?

As Elon Musk continues his lovey-dovey affair with Dogecoin, Bitcoin proponents continue to criticize the Dogefather.

Following Musk’s comments on Dogecoin today, popular Bitcoin advocate Max Keiser took to his Twitter page to ridicule the Tesla boss while recalling when gold bug Peter Schiff described Bitcoin as “intrinsically worthless” after he lost access to his BTC wallet.

“Who’s the bigger idiot?” Keiser asked.

Aside from Keiser, other Bitcoin proponents such as Michael Saylor replied to Tesla’s CEO:

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Source: https://cryptopotato.com/bitcoin-proponents-against-elon-musk-following-heated-dogecoin-vs-bitcoin-tweets/

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Blockchain

Tesla CEO Elon Musk Explains Why ‘Bitcoin Is Actually Highly Centralized’

On Sunday (May 16), Tesla and Space X CEO Elon Musk attacked Bitcoin (BTC) for being highly centralized after podcaster Peter McCormack criticized Musk for supporting Dogecoin (DOGE) and for spreading misinformation about Bitcoin. As you probably already know, on May 12, Tesla and SpaceX CEO Elon Musk shocked the world by complaining about Bitcoin mining’s […]

Republished by Plato

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On Sunday (May 16), Tesla and Space X CEO Elon Musk attacked Bitcoin (BTC) for being highly centralized after podcaster Peter McCormack criticized Musk for supporting Dogecoin (DOGE) and for spreading misinformation about Bitcoin.

As you probably already know, on May 12, Tesla and SpaceX CEO Elon Musk shocked the world by complaining about Bitcoin mining’s high usage of fossil fuels and saying that for this reason Tesla would not be accepting Bitcoin as a form of payment until “mining transitions to more sustainable energy.”

The next day, Musk revealed that has been working with Dogecoin developers to reduce the power consumption of mining of the meme-based cryptocurrency.

In fact, as Decrypt reported on May 14, according to Ross Nicoll, one of the part-time Dogecoin developers Decrypt talked to, Musk “started talking to the developers in 2019, he has ‘encouraged them to improve the higher transaction throughput,’ provided ‘lots of advice and input,’ and shared his vast Rolodex of contacts.”

Nicoll also said (1) that the dev team he is part of is hoping to reuce Dogecoin’s power consumption; (2) Musk has been with Dogecoin’s dev team since April 2019 (when he said that Dogecoinmight be his favortie cryptocurrency); and (3) that Musk had offered to fund the team, but his offer of financial support had been rejected (just as with offers they had received from other wealthy potential backers).

Yesterday, Dogecoin supporter “@itsALLrisky” said on Twitter explained why he thinks that Dogecoin, which Musk has referred to as “people’s crypto”, is better than Bitcoin. Musk said Dogecoin would beat Bitcoin “hands down” if its developers made three improvements: 10X faster block production time, 10X larger block size, and 100X lower transaction fees.

Well, today, McCormack criticized Musk for supporting meme-based Dogecoin, which he thinks could potentially result in ill-informed investors in $DOGE suffering big losses, as well as causing harm to Bitcoin’s reputation and its ecosystem.

McCormack’s accusations angered Musk, who seemingly warned that he might just “go all in on Doge.”

Musk then went on to explain why he believes that Bitcoin is highly centralized.

DISCLAIMER

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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Source: https://www.cryptoglobe.com/latest/2021/05/tesla-ceo-elon-musk-explains-why-bitcoin-is-actually-highly-centralized/

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Blockchain

ETH Developers Calculated How To Defuse The Difficulty Bomb

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ETH developers calculated how to defuse the difficulty bomb because if they leave it untreated, they will slow down the network as we can see more in our Ethereum news today.

Ethereum’s encoded difficulty bomb is set to explode this summer and James Hancock as well as Tim beiko said that the ETH developers calculated the time needed to delay the bomb and this could the last time the developers need to take that action. Ethereum developers agreed on Friday how to delay the difficulty bomb ad if that is left untreated, the entire network could be slowed down. The difficulty bomb is an old piece of code that makes mining on ETH slower and less profitable over time by increasing the lag between the production of blocks.

Ethereum 2.0 switches the network from proof of work as a way of validating transactions with powerful mining computers to Proo of Stake which rewards the ones that pledge the coins to the network. It takes an average of 13 seconds to mine a block on ETH right now and without delaying the bomb, it could take more than 20 seconds to validate the block by the end of the year. Ethereum developers agreed on how many blocks were quite necessary to delay the bomb until December. The calculation for the delay was proposed by the ETH core developers James Hancock as he said:

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“The bomb’s always there, and we defuse it by turning the blocktime back just for the bomb.”

block time
The block time chart on Etherscan. Annotated by James Hancock for Decrypt.

He later said that the proposal will delay the bomb by 9,700,000 blocks. Tim Beiko, the ETH core developer also said that the developers dismissed a proposal to delay the bomb next spring but that won’t be necessary. The developers expected that by December, the network will update to allow the ETH 1.0 the network that relies on PoW to communicate with ETH 2.0 as the new network relies on PoS and this is known as the Merge:

“If the Merge is ready by December, we won’t need to do anything about the bomb because we will move away from mining entirely.”

If the merge plans remain unimplemented, the Shanghai fork is expected to go live and will delay the bomb once again. The Bomb has been delayed three times so far.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

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Source: https://www.dcforecasts.com/ethereum-news/eth-developers-calculated-how-to-defuse-the-difficulty-bomb/

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