Daily Cryptocurrency News – 17th October 2018

Welcome to our Daily News article. Here are the most important cryptocurrency news of 17th October 2018:

Decred Launches the New Politeia Voting System

Decred, (DCR) has recently announced the official launch of their governance system, Politeia. It has its name from the Greek word ” system of government.” Politeia is the company’s response to blockchain governance.

The system allows users to vote on proposals that determine the cryptocurrency’s future. This includes decisions on how Decred’s $20M treasury will be spent.

About Decred and the Update

Decred is a hybrid between Proof-of-Work and Proof-of-Stake. The company’s origin dates at February 2016. Last year Decred hosted on an on-chain vote to decide how to govern the cryptocurrency. DCR holders all agreed to adopt Politeia, an off-chain voting system that today goes live.

This voting system stands out the exact opposite of Bitcoin. In Bitcoin there is no formal governance, users vote by choosing what software to run and miners by choosing which chain to mine. The Decred team noted they want to preserve an open source community instead of becoming a corporation-like entity.

Politeia allows the users to govern everything inside Decred. Politeia now has the control of Decred’s $20M treasury fund. The protocol itself funds this treasury.  Moreover, 10% of every block reward is given to the treasury fund. Previously run by the core development team, now the owners of DCR can choose how Decred budgets their money.

The Decred ecosystem now also contains a proposals page, where project funding can get approved by the community. DCR holders will be able to buy tickets and even fraction of tickets to vote on these proposals.

According to the team, Politeia wants to allow Decred users to discuss, collaborate on, and fund new projects, and consensus changes.

Now, how does the system work?

In summary, for a vote to be valid, at least 20% of the live tickets must vote Yes or No. For a proposal to pass, at least 60% of the voting tickets must vote “Yes.”

For more information, visit Decred’s blog post.

Scheduled Hard Fork for Monero: Update Will Come Soon

Monero’s massive update is coming soon in this 18 October. The network will carry out another hard fork: Beryllium Bullet.  Thanks to the new protocol update, the transaction size will reduce and become cheaper.

Bulletproofs

The new important update for the platform is the implementation of bulletproofs. Berylium Bullet, which is “Bulletproofs” is the new concept for the optimization of range proofs that RingCT uses.

In Monero, all transactions are private, the sender, recipient and amount remain unrevealed. Thanks to RingCT (Ring Confidential Transactions) the amount of a transaction is entirely private.  To ensure that positive amounts are spend, Monero uses a form of Zero Knowledge Proofs, named Range Proofs.  Keeping the transaction amount unrevealed, these prove that the inputs match the outputs. Without this, an attacker with special transactions can create new coins, and lead to uncontrolled inflation.

The big problem in the picture is that traditional range proofs take a lot of space. A range proof transaction is about 13 kB in size. This is a big amount space comparing to a Bitcoin transaction, which is 250 bytes in size (about 50 times less).

The new update comes to solve this problem and will reduce the transaction size by about 80% (which will undoubtedly lead to lower fees). This means that a 13 kB transaction will become a 2.3 kB transaction. The transactions costs are expected to drop from 20 to 30 cents to a few cents per input thanks to this new update. Yes, we will have lower transactions fees while keeping maximum security.

One more day for Bulletproofs to come. Stay updated on Monero’s website.

BlockFi Will Now Be Supporting Litecoin & GUSD for Crypto-Backed Loans

BlockFi is excited to announce that they now support Litecoin (LTC) as collateral and Gemini’s GUSD stablecoin as a loan funding option.

This announcement makes BlockFi now the only crypto-backed lender to support GUSD. This new funding option enables BlockFi to fund loans 24/7, rather than just during U.S. banking hours.

BlockFi plans in the future to support other significant cryptocurrencies on the market. These plans include stablecoins, which they believe to be vital to support borrowers in the emerging markets. The company came with the concept of providing global liquidity, with the specific goal of helping to grow the crypto industry. This first expansion of supported collateral types is a big step for BlockFI towards fulfilling that goal.

OmiseGo: Plasma Integration is almost complete

OmiseGo is building a public, permisionless, peer-to-peer network that has a primary focus on mobile wallets used in Southeast Asia.

Named Plasma project, the team has recently announced their progress and what they will be researching in the next phase.

The project was first envisioned by Joseph Poon, the founder of Lightning Network, and Vitalik Buterin, the founder of Ethereum.

According to its creators, Plasma is a framework for incentivized and enforced execution of smart contracts. An execution which is scalable to a significant amount of state updates per second (potentially billions). Therefore, this enables the blockchain to represent a significant amount of decentralized financial applications globally.

Source: Official OmiseGo Website

With this in mind, we can have a theoretically infinte amount of blockchains to be created within the Plasmachain (a side chain). Also, no information will be shared with other Ethereum-based applications. Furthermore, only one transaction with Ethereum (the root chain) needs to be made when the user chooses to enter or exit the Plasmachain.

Plasma Update #5

In a recent conference, OmiseGo Director of Engineering Kasima explained Plasma development’s progress. He made the point that Plasma is not in production yet, but he feels confident in saying their project is the closest to completing the task.

Here is a video of the conference:

(Plasma presentation starts at 47:43)

The new 5th update came recently on October 8th, 2018. The team announced that they are towards to goal of bringing a working form of Plasma to the network as soon as possible. They are getting ready for their Watcher API to be ready for internal integration.

According to the update, they’ve been fixing some bugs that have been appearing on the platform. They also improved the API’s ability in some areas, such as:

  • Improved ability to report account balances
  • Improved ability to submit transactions through the watcher
  • Increased syncing performance between the root chain and side chain.

As for the progress on the complete integration of their project, the development team made an announcement in the update.  “We are putting the final touches on our first integration library before making that repo and npm module (Node Package Manager, a javascript packaging format) public as well.” Moreover, they’ll be using Javascript, as their first integration library that will build the foundation for an alpha version of their product.

 

If you missed yesterday news, you can check them here: Daily Cryptocurrency News – 16th October 2018

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