It’s an established truth the cryptocurrency sector is more fragmented than shattered glass. Industry devotees have long made the most of working piecemeal, accepting ever-increasing fragmentation as the price of a decentralized financial system. But what advancements might we achieve if we could stop paying it?
At first glance, interoperability seems like a near-impossible goal. According to CoinMarketCap, over 8,000 unique cryptocurrencies currently exist – a 400% increase from two years ago. These numbers sound impressive at first, however, the veneer wears off once you consider the sheer inconvenience that variety poses.
Stephen Tse, is founder and CEO of Harmony.one. He was previously a researcher at Microsoft Research, a senior infrastructure engineer at Google and a principal engineer for search ranking at Apple.
Decentralized applications (dapps) are limited by the constraints of their home blockchain. If a dapp is built on Ethereum, it can usually only enjoy the benefits provided by Ethereum (ex., smart contract functionality). Thus, for all of the advantages that diverse cryptocurrencies might present individually, users may struggle to take full advantage of the multiplicity because the blockchains are not interoperable.
Here’s the issue – while career cryptocurrency traders may be willing to manually “hunt and peck” across fragmented cryptocurrency exchanges and blockchain apps for the features and services they want, it seems overly optimistic to think that the rising cohort of investors will be content with the status quo. Consider the push towards cryptocurrency normalization we saw in 2020. Three major fintech firms (Square, MicroStrategy and Mode) embraced bitcoin, and PayPal recently launched its own cryptocurrency trading service.
As a result, the people we see entering the crypto market aren’t technology professors or developers, they’re ordinary consumers and investors who are accustomed to more streamlined and cohesive experiences.
“As new users enter the industry, I’ve seen a clear demand for ‘intermediaries’ that mirror the centralized financial entities consumers are used to, improved user experience, and greater liquidity, but I’ve also seen the control and holding of users funds: sacrificing ownership for access,” cryptocurrency expert Alexey Koloskov recently wrote for Forbes.
If the crypto sector’s fragmentation remains unaddressed by those within it, Koloskov suggests, there is a risk that conventionally minded players will offer solutions that undermine the freedoms cryptocurrencies were invented to provide.
Consumers are right to ask for interoperability. They need innovation, they need new interoperability tools.
The intervention of centralized powers is frustrating, both for its tacit erosion of trader freedom and because consumers are right to ask for interoperability. They need innovation, they need new interoperability tools – and if innovators who appreciate the philosophy that underpins blockchain can provide it, they stand to not only solve a major UX problem, but also redefine the capabilities of fintech as a whole.
Consider the work that has already been done with trustless bridges as an example.
For context, a trustless blockchain bridge is essentially a public blockchain network that allows two technologically different and economically sovereign chains to freely communicate with each other sans permissions. This connection allows for interoperability between two blockchains that would otherwise have no means to conduct mutual transactions or utilize the other’s chain-specific apps.
Trustless, two-way bridges could provide game-changing fluidity across previously siloed chains, allowing newcomers and blockchain devotees alike unprecedented access and ease-of-use. Assuming future advancement, we can imagine a future version of the cryptocurrency sector, one that upholds interoperability without compromising its commitment to decentralization and individual autonomy.
Beyond enabling smoother transactions and a more cohesive and informed trading experience, such bridges facilitate greater usability. By linking two disparate cryptocurrencies by cross-chain bridges, users can enjoy the best of both, rather than having to pick one over the other. When using a cross-chain bridge between Ethereum and Cosmos, for example, a user could leverage Ethereum’s smart contract functionality and Cosmos’ scalability.
Imagine that versatility multiplied out over a dozen blockchains. Imagine the functionality we could achieve if end-users and app developers could ultimately cherry-pick the features they wanted in their trading experience.
We may not be to the point where such fluidity is possible yet, but there’s little doubt that such a reality waits on the horizon. Innovations like cross-chain bridges offer a glimpse of what the future of fintech and crypto could look like – what it might mean to introduce a truly decentralized financial system where consumers finally, truly, have the final say not only on trades, but on their trading experience.
The blockchain fragmentation problem is significant and, in the absence of proper consolidation tools, expanding. The cryptocurrency sector needs to provide solutions that facilitate blockchain connections among all people and any economy.
Our fragmented and siloed status quo will not work indefinitely. We have the technological means – and the market impetus – to seek interoperability without compromising on decentralization or consumer experience. By literally bridging the silos, we won’t just improve user experience, we’ll usher in a new era of financial innovation and creativity.
Bitcoin Mining Company Vows to be Carbon Neutral Following Tesla’s Recent Statement
It goes without saying that Tesla took center stage last week when the company announced it would no longer support bitcoin payments for its electric vehicles.
The message seems to have resonated, as Greenidge Generation Bitcoin Mining has vowed to be carbon neutral in 2021 and beyond.
Carbon Neutral Bitcoin Mining
After announcing plans to expand its Bitcoin mining operations last month, Greenidge is now looking to go entirely carbon neutral this year and in the future.
The company is committed to the cause, and it plans to invest in US-based renewable energy projects.
According to a recent press release, the company will also take part in the Regional Greenhouse Gas Initiative, which is a market-based program where participants sell CO2 allowances through auctions and invest the proceeds in renewable energy and energy efficiency.
Speaking on the matter was Jeffrey Kirt, the CEO of the company, who said:
“Our bitcoin mining capability is already best-in-class and seamlessly integrated with our electricity generation that powers thousands of homes and businesses. By taking the bold and unique step of making or cryptocurrency mining fully carbon neutral immediately – as opposed to some distant date in the future – Greenidge is once again leading in environmental efforts.”
Musk’s Message Resonates
Greenidge’s announcement comes days after the leading electric vehicle manufacturer, Tesla, revealed that it would no longer support bitcoin payments. As a reason for its decision, the company cited environmental concerns related to bitcoin mining.
Elon Musk, the company’s CEO, confirmed and reiterated that he is bullish on crypto but so long as it doesn’t have a negative environmental impact.
The company also said that it’s looking for ‘greener’ alternatives to Bitcoin so that it can continue accepting crypto payments. This led to many speculations about which cryptocurrency it would choose. Shortly after, Musk said that he’s working closely with Dogecoin developers to improve transaction efficiency, causing many to believe that the meme-inspired coin might be Tesla’s choice.
There is something different this time around for MATIC and ETH
MATIC’s growth has been community and developer-driven. Trading at the $1.13 level and registering 27% gain in price in the past 24 hours, MATIC’s rally is an extended one, leading the altcoin season 2.0. However, there is something different this time around, MATIC is currently rallying alongside ETH, more as an ally, than a competitor. With ETH’s price above the $3700 level, and MATIC’s rally, the alt season has offered several opportunities, consolidating alts and rallies following closely after.
Since the release of the latest transparency report on Polygon Multisigs, Polygon has become more relevant and there is increased demand for the altcoin across exchanges. Multisigs are used by top projects that have the feature of updating smart contracts. This is not the case for Ethereum, since smart contracts on Ethereum are immutable by design ie. they can not be changed once deployed.
However, this feature also means that if there is an inherent error or potential exploit in the code, there is no way to fix it. Upgradeable contracts are needed and that’s where Polygon’s narrative fits in, making it a much-needed scaling solution and an upgrade on ETH.
The current network statistics for MATIC are looking bullish since there are over 65.8 Million total transactions in over half a million wallet addresses and at $10.4 Billion market capitalization. The trade volume has increased consistently since the beginning of 2021 and more buyers are lining up across spot and derivative exchanges.
The demand for MATIC and the number of transactions have increased and are expected to increase to the level of Ethereum before the end of the alt season. The increase in wallet addresses and unique users is a direct measure of MATIC’s demand as an L2 scaling solution for the #1 altcoin in the crypto market.
The competition with ETH is no longer as intense, considering the fact that ETH’s increasing popularity contributes to the network growth and inflow of investment to MATIC. MATIC’s transaction volume largely depends on ETH’s network and the fact that ETH needs a scaling solution despite the launch of L2, has led to a symbiotic relationship between the two altcoins.
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Litecoin price prediction: Litecoin trades above $300, attempt to break below later?
TL;DR Breakdown LTC retests the $300 support overnight. Lower local low set at $320. Next support at $280. Today’s Litecoin price prediction is bearish as the market rejected further upside around $320 earlier today and currently moves lower to attempt to break below the $300 once again. The overall market trades in the red today. […]
- LTC retests the $300 support overnight.
- Lower local low set at $320.
- Next support at $280.
Today’s Litecoin price prediction is bearish as the market rejected further upside around $320 earlier today and currently moves lower to attempt to break below the $300 once again.
The overall market trades in the red today. Bitcoin has lost more than 2 percent and trades around $48.900. Meanwhile, Ethereum is among the worst performers with a loss of more than 5 percent. Alternatively, Stellar (XLM) is among the best performers, with a gain of 5 percent over the last 24 hours.
LTC/USD opened at $300.11 today after a bearish close yesterday that resulted in another retest of the $300 mark. Over the past hours, LTC/USD rejected further upside, indicating that we should see another push lower over the next 24 hours.
Litecoin price movement in the last 24 hours
The LTC/USD price moved in a range of $297.59 – $323.76$, indicating a moderate amount of volatility. 24 hour trading volume has dropped by 7.15 percent and totals $5.2 billion. The total market cap stands at $20.6 billion, ranking the cryptocurrency in 12th place overall.
LTC/USD 4-hour chart – LTC prepares to break below the $300 support again
On the 4-hour chart, we can see moving lower over the past hours as bears attempt to finally break below the $300 mark.
Overall, Litecoin price action momentum continues to be bearish as the market retraces after setting a new all-time high at $413 on the 10th of May. Previously, we saw Litecoin rally around 80 percent from the $220 major support area, indicating we could see a similar upswing over the following weeks.
First, Litecoin has to finish retracing from the current high. Support around the $300 mark was reached on Thursday. From there, Litecoin retested the $335 resistance and reversed to the $300 overnight.
Over the past hours, LTC/USD moved higher and established another lower high around the $320 mark. Therefore, we expect Litecoin to attempt to push below this support over the next 24 hours. Once the $300 support breaks, the next support is located around the $280 mark.
Since the $280 level previously acted as a very strong support, we should see the market price reverse back to the upside next week. From there, LTC/USD should move higher and try to establish another several-week upswing and set further all-time highs.
Litecoin Price Prediction: Conclusion
Litecoin price prediction is bearish as the market continues setting lower highs over the past few days. LTC/USD currently attempts to move lower once again to break the $300 support. Therefore, we expect further downside over the next 24 hours, with the next support target at the $280 mark.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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