The Technology Partener
Layer 2s have been a great blockchain success story. They’ve reduced congestion on the Ethereum mainnet, driving down gas fees while preserving security. But maybe they’ve become too successful, drawing chain activity and fee income from the parent that spawned them? At least that’s what some are suggesting lately, most recently at Cornell Tech’s blockchain…
Coinbase’s emergence as the Ethereum network’s largest node operator raises concerns about network centralization that could worsen as institutional adoption accelerates, industry executives told Cointelegraph. On March 19, Coinbase published a report disclosing that the US cryptocurrency exchange controlled more than 11% of staked Ether (ETH), more than any other Ethereum node operator. According to…
How does the IRS define a crypto broker? The definition of the term “broker” includes individuals or entities that regularly provide services to carry out digital asset transfers. This definition ensures that only those truly “in a position to know” transaction details are subject to Form 1099-DA reporting requirements. These US Internal Revenue Service rules…
Understanding liquidity crises A liquidity crisis occurs when an organization lacks sufficient liquid assets, such as cash or assets readily convertible to cash, to meet its short-term financial obligations. Major hacks in the cryptocurrency exchange sector can trigger liquidity crises in several ways. The immediate depletion of assets, especially from compromised hot wallets, can severely…
SSV Network proposed a new permissionless staking module for Lido, aiming to improve decentralization and staking infrastructure for institutional participants. SSV Network proposed a permissionless staking module that leverages SSV’s Distributed Validator Technology (DVT) to integrate node operators (NOs) into the operator set of Lido on Ethereum. If approved, the proposal would add the first…
Rollbacks in blockchain explained In blockchain, a rollback refers to reversing its history to counter a disastrous event, such as big hacks threatening to disrupt the ecosystem, the discovery of critical protocol bugs or centralization risks of network integrity. The Bybit hack, which resulted in a staggering $1.46 billion loss, has triggered a demand regarding…
