Tag: ethereum

NFT

Solana vs Ethereum: What’s the Difference?

Post author By awhitegomez
Post date January 31, 2023
No Comments on Solana vs Ethereum: What’s the Difference?

Solana vs Ethereum. Solana logo on the left and Ethereum logo on the right with the words "Solana vs Ethereum between".

Trying to find the best blockchain can be difficult considering they all have their own pros and cons. Solana and Ethereum are two of the most well-known blockchains. They’re both often compared to one another, but how do they actually differ from one another?

Solana and Ethereum differ in terms of the consensus mechanism they utilize. Ethereum follows Proof of Work (PoW) leading to a more decentralized network, but less scalability. Solana follows Proof of History (PoH), which is less secure but more efficient, leading to high-speed and low-cost transactions.

What is Solana?

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Solana is a high-performance decentralized blockchain built with the goal to enable the scalability of user-friendly applications. Solana is thought to have one of the fastest-growing ecosystems in the world, with thousands of projects spanning DeFi, NFTs, Web3, and beyond.

The Solana blockchain is best known for its lightning-fast and inexpensive transactions. Solana’s scalability ensures that all transactions remain under $0.01, and transaction speeds are as quick as 400 milliseconds per block.

Of course, the Solana blockchain isn’t perfect either. In September 2021, the Solana network had gone down three times, with the entire network down for nearly 17 hours at one point as the result of a hack. More recently, a Solana bridge to the Ethereum network was also hacked, and resulted in $320 million of stolen funds.

That being said, Solana has its fair share of benefits when compared to the Ethereum blockchain.

Solana blockchain breakdown

Alex Gomez / ONE37pm

Proof of History (PoH)

The Solana network uses a PoH consensus. Using PoH allows the Solana network to create a historical record that proves an event has occurred at a specific moment in time. PoH uses a cryptographically secure function written so that output cannot be predicted from the input, and must be properly executed to generate the output.

Better Transaction Speeds

In reality, Solana is taking advantage of Ethereum’s slower network. Solana achieves such efficient transaction speeds by utilizing a centralized network, which comes with a concerning level of risk for its users as mentioned above.

The Solana network uses a Tower Byzantine fault-tolerant (BFT), which removes the need for nodes to communicate with each other in real-time, and the result is improved efficiency. Currently, the Solana network can process approximately 50,000 transactions per second (TPS).

Enhanced Scalability

In addition to quicker transaction speeds, Solana is known for its enhanced scalability. The Solana network is scalable at its core level, meaning it does not require layer-two solutions to increase scalability.

The technology behind the Solana network breaks down data into smaller chunks, making it easy to transfer it across the network. Another technology called Sealevel also helps the processing of transactions across GPUs and SSDs, both of these combined result in an efficient blockchain network.

What is Ethereum?

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Ethereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It’s a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications that many of us use today.

Although Ethereum lacks the speed and cost-effective transactions when compared to Solana, it makes up for it with its mature decentralization. To compensate for this lack of scaling features at the core of its blockchain, layer-two solutions help provide enhanced scalability and throughput.

Let’s review the features of the Ethereum network and what it offers.

Ethereum blockchain breakdown

Proof of Work (PoW)

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Ethereum utilizes a consensus mechanism called Proof of Work (PoW). This mechanism allows the decentralized Ethereum network to come to a consensus (an agreement) by enabling one party to prove to others that a certain amount of a specific computational effort has been expended. This prevents users from spending ETH they don’t have and ensures that the Ethereum chain is extremely difficult to attack or manipulate.

Smart Contracts

The Ethereum blockchain is largely known for its smart contract capabilities. It can support a variation in programmability, which aids in the creation of different types of smart contracts. Solidity is the base programming language on Ethereum and is used for the coding of these smart contracts.

Scaling

Currently, Ethereum can only process about 13 to 15 transactions per second. Since the Ethereum mainnet lacks scalability, layer-two scaling solutions like Polygon, Validium, and rollups have been implemented. Additionally, once Etherum is upgraded, the creator of Ethereum mentioned that transaction speeds could increase to as much as 100,000 transactions per second, while still maintaining the same level of security.

NFTs

If you use Ethereum then you have likely at least heard of NFTs. Although Ethereum wasn’t the first blockchain to offer NFTs, it has been the most successful overall and is considered to be the go-to blockchain for NFTs.

Solana vs Ethereum

Alex Gomez / ONE37pm

Now that we have learned a bit more about both Solana and Ethereum, we can better compare the two blockchains. We know that Ethereum is the more secure and most decentralized option out of the two, and Solana is the quicker and more cost-effective network. But which is better?

Is Solana or Ethereum better?

When deciding which blockchain is better, Ethereum or Solana, it depends on your personal goals. Do you prefer a blockchain that is more secure but costs more as a result? Or do you only care about speed and cost-effectiveness?

If you want to transact on the most secure blockchain, use Ethereum. The Ethereum blockchain is the more mature network and has been around since 2014, meaning it has had time to be optimized. If you only care about fast transactions and low-cost, use Solana. Solana was created in 2020 and is still trying to figure it all out, but, it offers users a more affordable option.

Is Solana or Ethereum more popular?

Alex Gomez / ONE37pm

This wouldn’t be a proper VS article if we didn’t have a popularity contest between Solana and Ethereum.

Currently, Ethereum has a market cap of $353 billion, whereas Solana has a current market cap of $28 million, meaning that Ethereum is the obvious choice in terms of popularity. Also, the NFT space prefers Ethereum over Solana, as a majority of blue chip NFT projects currently live on the Ethereum blockchain.

At the end of the day, both Solana and Ethereum have their list of pros and cons. So, if you’re having a difficult time deciding which blockchain is best for you, first ask yourself what your goals are. If you still don’t know, then try both.

Tags ethereum, solana

NFT

Ethereum Merge Has Happened: Everything to Know About The Upgrade

Post author By erikal
Post date September 15, 2022

Ethereum is the second most valuable blockchain following Bitcoin, and is number one in NFT transaction volume. Now, the Ethereum Merge is making its network even better.

Shortly before the merge, Buterin tweeted a quote from Ethereum researcher Justin Drake, saying the merge would reduce global electricity consumption by 0.2%.

When Did the Merge Happen?

Ethereum’s mainnet merge happened on September 15, 2022. This completed Ethereum’s transition to proof-of-stake consensus, officially deprecating proof-of-work and reducing energy consumption by ~99.95%.

What’s Next?

Now that the merge is complete, what else does Ethereum have in store? Ethereum’s co-founder Vitalik Buterin shared his updated roadmap on where Ethereum protocol development is at and what’s coming in what order.

The Ethereum Merge moves the blockchain from a proof-of-work consensus mechanism to proof-of-stake. This merge means that ETH holders will operate as validators opposed to energy-intensive computers doing the work, hence creating a more efficient blockchain and reducing its carbon footprint.

The Merge is just one part of the overall upgrade. Below, we will discuss what The Merge is and what it means for users of the Ethereum blockchain.

Ethereum Merge: What is it?

Currently, Ethereum operates on a proof-of-work (PoW) consensus mechanism. This mechanism requires special computers to solve arbitrary mathematical problems to prevent anybody from compromising the network. Although PoW is very effective, it is also extremely energy-intensive.

Even though Ethereum still utilizes proof-of-work, its new mechanism proof-of-stake (PoS) is currently operating parallel to it on the Beacon Chain. This chain is responsible for creating new blocks, validating them, and rewarding validators with ETH for keeping the network secure, without the use of smart contract functionality.

Mainnet will enable the new network to run smart contracts into the proof-of-stake system, and includes the full history and current state of Ethereum. This is to ensure that the transition is smooth for all ETH holders and users.

The Merge is when these two chains will finally come together. Upon completion, The Merge will successfully end the proof-of-work mechanism and initiate the new proof-of-stake mechanism.

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What Happens Once Ethereum Merges?

The Ethereum Merge officially marks the end of the blockchain’s proof-of-work consensus mechanism and its transition to a new proof-of-stake consensus layer. The goal of The Merge is to reduce the network’s energy consumption significantly and enable Ethereum to scale to even greater heights.

Considering the Beacon Chain is solely used for the testnet merges, it has not been processing transactions on the mainnet. Rather, it’s been reaching consensus on its own state by agreeing on active validators and their account balances.

After The Merge, the Beacon Chain will be the engine for all network data, including execution layer transactions and account balances.

The Merge gets us one step closer to achieving the full scale as outlined in the Ethereum vision.

According to Ethereum, a post-merge cleanup upgrade will be implemented to address other features and will take place very soon after The Merge is complete.

To ensure a successful merge, developers are minimizing additional features that could delay it. This means those of you waiting to withdraw staked ETH will have to wait a while longer after The Merge is completed.
Also, let’s not forget about the Shard chain portion of the upgrade. Originally, Ethereum developers planned to work on the Shard chain before The Merge to address the current scalability issue. However, with layer 2 scaling solutions in high demand, the priority has shifted to swapping proof-of-work for proof-of-stake.

Common Misconceptions Regarding The Merge

It’s easy to get lost in all the talk that’s going around on Twitter and elsewhere. Below I will outline some of the most common misconceptions regarding The Merge as stated on Ethereum’s official website.

The Merge will reduce gas fees

Contrary to popular belief, gas fees will remain the same post Merge. Gas fees are determined by network demand relative to the capacity of the network. The Merge eliminates the use of proof-of-work, transitioning to proof-of-stake for consensus, but does not change any parameters that directly influence network capacity or throughput.

Transactions will be quicker

Transaction speed will largely remain the same on layer 1. On proof-of-work, the target was to have a new block every 13.3 seconds. On proof-of-stake, blocks will be produced 10% more frequently than on proof-of-work. This is an insignificant change that is unlikely to be noticed by users.

You can withdraw your staked ETH

Users are not able to withdraw their staked ETH post-merge. The main focus is to get the transition from PoW to PoS, as a result, actions like this were put on the back burner. The following Shanghai upgrade will enable staking withdrawals.

When withdraws are enabled, stakers will all exit at once

Validator exits are rate limited for security purposes. After the Shanghai upgrade enables withdrawals, all validators will be incentivized to withdraw their staking balance above 32 ETH. These funds do not add to yield and are otherwise locked. Depending on the APR (determined by total ETH staked), they may be incentivized to exit their validator(s) to reclaim their entire balance or potentially stake even more using their rewards to earn more yield.

Full validator exits are rate limited by the protocol, so only six validators may exit per epoch (every 6.4 minutes, so 1350 per day, or only 43,200 ETH per day out of over 10 million ETH staked).

Staking APR is expected to triple post-merge

According to Ethereum, more accurate predictions reveal a 50% increase in APR post-merge, not 200%. This isn’t the result of an increase in protocol ETH issuance (ETH issuance after The Merge is decreasing by 90%), rather it’s the result of a reallocation of transaction fees that will start going to validators instead of miners.

The Merge will cause network downtime

The Merge is designed to ensure a smooth transition to proof-of-stake with no downtime. The Merge is triggered by terminal total difficulty (TTD), which is a measure of the total mining power that has gone into building the chain. When the criterion is met, blocks will go from being built using proof-of-work in one block to being built by proof-of-stake in the next.

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Things to Be Aware of Post-Merge

Although the long-term impact of Ethereum’s Merge will be significant, there are some things you should be aware of before it happens to help you prepare.

Despite changing from proof-of-work, the entire history of Ethereum since genesis remains intact and unaltered after the transition to proof-of-stake. Any funds held in your wallet before The Merge will still be accessible after The Merge. No action is required on your end.

That being said, at least one proof-of-work fork will carry on post Merge. This means there will be two versions of your NFTs (one on PoW and one on PoS).

Even though everything is being done to protect users after the merge, there is still a concern for a potential replay attack. Essentially, this attack replicates transactions on one blockchain and executes them on another.

This attack isn’t guaranteed, but it is worth mentioning as it’s still a possibility. So what can you do to protect your assets?

Delist any NFTs that you have for sale. This decreases the likelihood that an unwanted transaction will go through.

You can transfer your assets on the PoW chain to a new wallet.

What Does Ethereum Merge Mean For Users?

The Merge of the main chain with the Beacon Chain aims to solve a lot of problems.

More scalable

The ultimate goal of the upgrade is to make Ethereum more scalable. That means the network needs to be capable of handling thousands of transactions per second to make transactions faster and more cost effective to use.

In comparison, Visa claims to have the ability to handle 24,000 TPS. However, they average around 1,700 TPS with an estimated 150 million transactions per day. So, if Ethereum can successfully scale to be able to handle thousands of transactions per second, mainstream adoption becomes much more of a reality. The Merge is a big step in the right direction to increasing scalability of the network.

Increased security

The more blocks that are verified on Ethereum, the more secure the network becomes. As the adoption of Ethereum continues to grow, the protocol becomes more secure against all forms of attack. Even though proof-of-stake is secure, it’s a more complicated system. But, if executed properly, the result will be an even more secure network.

Better sustainability

Today’s Ethereum network is not environmentally friendly. The amount of energy consumed by the special computers designed to solve equations is outrageous—not to mention expensive for those who set them up. Since proof-of-stake removes high-power computing from the consensus algorithm, it’s claimed that the network will become 99.95% more efficient than it is today.

All that being said, there is a common misconception that The Merge will reduce the current gas fees. It won’t. Gas fees will remain the same. But, there’s still hope. The Merge is just part of the macro upgrade that is taking place on Ethereum. Of course, the end goal is to reduce gas fees, we’re just not quite there yet.

What About Triple Halving?

On August 5, 2021 Ethereum executed an upgrade known as the London hard fork. This fork brought on a major change in the form of EIP-1559—a code that began to remove ETH from circulation and changed how transaction fees on Etherum work.

Currently, anyone who makes a transaction on the blockchain pays a base fee that is burned (rather than going to miners). Burning is the process of sending something to an inaccessible address. ETH is sent to a burn address that takes it out of circulation.

Although new ETH is created every time a block is added to the chain, a small amount of ETH is also disappearing, causing a deflationary pressure on the network.

A similar scenario has already been experienced on the Bitcoin blockchain. Bitcoin’s most recent halving occurred on May 11, 2020, when BTC rewards were reduced from 12.5 BTC to 6.25 BTC. At that time, Bitcoin was $8,800.

Then, as many of us know, it nearly doubled in price over the next six months, and today 1 BTC costs about $31,000.

Now Ethereum is about to experience what’s referred to as “Triple Halving”.

In theory, the combination of EIP-1559 and The Merge into a proof-of-stake mechanism, would represent a “triple halving,” as they would reduce sell pressure by an estimated 90%.

The Merge will cut rewards for new blocks drastically from 12,800 ETH to 1,280 ETH per day (about 90% according to Blockchain analytics firm IntotheBlock), creating a system where more ETH is burned via gas fees than is created daily. As a result, ETH will become a deflationary asset, where before, it was an inflationary one.

Because the amount of ETH issued post-merge is expected to drop by 90%, many are speculating that the price of ETH could skyrocket. But, no one knows if that will happen for sure.

90%, many are speculating that the price of ETH could skyrocket. But, no one knows if that will happen for sure.

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What Happens After The Ethereum Merge?

Ultimately, The Merge gets us one step closer to achieving the full scale as outlined in the Ethereum vision. The main goal of The Merge is to expedite the transition from proof-of-work to proof-of-stake.

According to Ethereum, a post-merge cleanup upgrade will take place after The Merge.

To ensure a successful merge, developers are minimizing additional features that could delay The Merge. This means that those of you waiting to withdraw staked ETH will have to wait a while longer after The Merge is complete.

Also, let’s not forget about the Shard chain portion of the upgrade. Originally, Ethereum developers planned to work on the Shard chain before The Merge to address the current scalability issue. However, with layer 2 scaling solutions in high-demand, the priority has shifted to swapping proof-of-work for proof-of-stake.

What Are Shard Chains and How Will They Affect Ethereum?

The Shard chains aim to expand Ethereum’s capacity to process transactions and store data, but are not used for executing code. These shards will be rolled out in numerous phases and will gain more features over time.

Sharding is often used in computer science to split databases horizontally to spread the load.

In Ethereum’s case, sharding will create new chains known as “shards”. Hence, reducing network congestion and increasing transactions per second and providing additional, cost effective, storage layers for applications and rollups to store data while still maintaining the same security of the Ethereum mainnet.

The Shard portion of the upgrade will likely occur some time in 2023.

Trent VanEpps

In reality, The Merge is the next sensible step in the Ethereum upgrade process. The ultimate goal is to make Ethereum more scalable, secure, and sustainable. Although The Merge won’t complete the upgrade entirely, it gets us closer to completion and to mainstream adoption.

What Happens to ETH After ETH2?

The term ETH2 is no longer considered proper terminology. The reason being is that The Merge will combine two chains to make one new chain. There will only be Ethereum. To better distinguish these terms, ETH is now regarded as the ‘execution layer’, which handles transactions and execution.

And ETH2 is now known as the ‘consensus layer’, which is solely responsible for handling the proof-of-stake consensus.

Will The Price of ETH Increase Post-Merge?

There are no guarantees that the price of ETH will increase after The Merge. However, current trends indicate that it’s a possibility. In the last 30 days leading up to the completion of the Goerli Merge, the price of ETH has spiked nearly 70%, reaching over $1,900 and steadily maintaining.

If this trend continues, there’s no telling how high the price of ETH could be after a successful merge. The sky is the limit.

Tags blockchain, ethereum, merge, NFT

NFT

Foreign Language ENS Names Are Surging – Here’s Why

Post author By erikal
Post date July 6, 2022

As adoption of Ethereum broadens across the globe, minting and trading of Ethereum Name Service NFTs is picking up pace.

With celebrities like Anthony Hopkins, Jimmy Fallon and Paris Hilton famously donning their .eth names, sporting your ENS is becoming trendy. Some of the largest NFT sales year to date have come from the 10k Club, with 000.eth recently selling for 300 ETH

Despite bearish market activity for many tokens and projects, ENS has continued to surge in volume.

Chart courtesy NFTstatistics.eth (Punk 9059)

OpenSea 7 day average volume reduced heavily in May and June. ENS secondary volume currently sits at rank #43 for all time volume, but rank #6 in a 30 day volume.

Why ENS?

Using ENS as a platform for projects gives founders and communities the following advantages:

ENS is proven infrastructure, so project founders don’t need to pay money to develop smart contracts or a front end website.
Users can rely on the safety and security of the ens.domains app and proven auction sites to buy, sell, and trade, vs connecting their wallets to new, unproven sites.
ENS Club usernames are already integrated on most web3 apps.

Drawbacks

Renewal fees: ENS domains require users to pay a fee to renew. Three and four letter renewals can be costly, and many users aren’t aware that a decimal can be placed in front of the 1 on the ENS app in order to customize the registration time below 1 year.

Grace period snipes: Once expired, ENS domains enter a grace period where the NFT is locked and cannot be traded. Other users can pay to renew a domain that they don’t own. If the owner had a listing that drops below the floor price of the collection, once the grace period is extended, it will appear for sale again and can be sniped. Be careful!

ENS.Vision displays top sales, club categories, bulk search and registration tools.

ENS Clubs

The recent ENS craze has been largely driven by ENS Clubs. The 10k Club, a gated community for holders of 3 and 4 digit ENS numbers, was one of the first to introduce the concept. Gem.XYZ allows you to sort from different top volume clubs, ENS Vision has data on floor prices, recent sales, and a useful bulk registration tool for ENS minting to save gas. There is also a useful bot on Twitter to track bids on ENS names.

Gem.xyz

Gem.xyz has a custom property under the ENS Domains tab, allowing you to search for your favorite ENS club projects that have been listed on the platform.

Foreign Language ENS Clubs

ENS users have always been creative regarding minting, but after the rise of the 10k Club, similar communities began to take shape around foreign digits. In May, I wrote an article about Arabic ENS names. Having spent over 15 years tutoring students in the Arabic language, I knew that the phenomenon of the 10k Club would catch on.

Foreign language clubs have similar benefits to being in a language club at a University. Networking with native speakers, learning language, and evolving memes and culture together are some of the unique features of these clubs.

Current prominent foreign language clubs by total volume:

999 Arabic (#4 rank overall)

999 Chinese (#12 rank overall)

10k Arabic (#18 rank overall)

The largest ENS sale in a foreign language, to date, are the digits 000 in Arabic. The buyer was present in spaces last week and commented that the latest ENS craze is onboarding an incredible amount of users–and capital–into NFTs. The 999 and 10k Arabic clubs are available on Gem, with more clubs being added every day.

Arabic clubs have been popular due to the extensive history behind their usage not only in Arab countries, but Persia, Ottoman Turkey, and other Asian, African, and even European countries. Low digit license plates command premiums into the millions of dollars in places like Dubai and the United Arab Emirates. Other elite numbers, such as phone numbers, also command a premium.

YallahHabibi.eth

Crypto Bitlord famously changed his profile picture to a “Habibified” version – adding the traditional Arabic Keffiyeh, a meme created by YallahHabibi.eth.

With a healthy balance of networking, cultural advocacy and trendy memes, the Arabic 999 Club is the current foreign language leader among ENS clubs.

Passport Clubs

Using emojis, many users are minting names with symbols and then a series of numbers. These are considered some of the more speculative plays in ENS right now. Remember, anyone can form a community around a subset of ENS names, so make sure you do your research and ensure the community you are joining has longevity and a diverse set of users. A quick check into wallets holding these NFTs can tell you if there’s just a few whales hoarding the project. ENS Vision also lists the amount of holders per listed club, and they won’t list clubs with the supply concentrated in too few hands.

An example of the Indian flag, with the digit 1, selling for 10 eth:

Unicode – Always check!

The ENS app has very few restrictions on what can be minted. For example, spaces between words are not allowed. But, most characters are fair game. Most ENS names are in the Unicode format. Copy and paste the characters you plan to mint or buy into a Unicode search tool and compare them to prior successful sales with the same club to make sure they’re correct.

Example 1: Arabic and Persian digits 0, 1, 2, 3, 7, 8, 9 look exactly the same. Wikipedia has a useful template with both Unicodes side by side.

Example 2: The flags for the USA and the US Outlying Islands look exactly the same. Emojipedia is a good resource to look up Emojis and compare to the correct collections.

Goro

Goro Ishihata explains the Japanese numeral system. Goro is a digital artist and NFT Guru from Japan.

Befriend a Native Speaker

Using ENS in foreign languages is a great opportunity to connect with native speakers. You’ll find many users in the different ENS Clubs on Twitter, Discord and other social media platforms. Start in the Discords you’re already in and see if there’s a community member you’re already familiar with who you can bond with and learn some language skills!

Chinese numbers, for example, do not always have single characters for each number, as traditional Western numerals do. It’s always the safest bet to check in with a friend before buying or minting.

Future Interest

The recent ENS foreign language domain hype continues the renaissance of art, culture and language that NFTs have created. From curious types experimenting in web3 to pure speculators, users of ENS are experiencing the benefits of an interconnected world. Due to the secure features of the ENS platform, it’s likely to see continued interest in ENS from a worldwide audience, and it is probable that ENS may become a strong competitor to top crypto projects in volume, adoption and new use cases.

Tags Domain Names, ens, ethereum, NFTs

NFT

How to Transfer Ethereum to MetaMask: Your Definitive Guide

Post author By erikal
Post date June 27, 2022

Whether you are buying NFTs or investing in Ethereum, you will need to know how to transfer ETH to your MetaMask wallet. This article will act as a step-by-step guide on how to get ETH from Coinbase to your MetaMask wallet.

First, you will need both a Coinbase account and a MetaMask wallet before you can send ETH. Below is how to set up each one.

How to Set Up Coinbase Account

To buy ETH, first you will need to set up a Coinbase account. Having launched in June 2012, Coinbase has built its reputation as one the most trusted and secure crypto exchanges in the world. With over 89 million registered users, you can trust that you’re not alone when you choose Coinbase as your preferred crypto exchange.

To set up your Coinbase account, follow these steps below:

Create your account

Go to Coinbase from a browser on your computer, or download and open the Coinbase app on Android or iOS to get started.

Verify your email

Select Verify Email Address in the email you received from Coinbase. This email will be from no-reply@coinbase.com.

Verify your phone number

When you sign into Coinbase, you will be asked to enter your phone number. Upon doing so, you will need to enter the seven-digit code Coinbase texted to you, into your Coinbase account.

Enter your personal information

Enter all the required info from your government-issued photo ID (you will need to provide a picture of your ID later).

Verify your identity

Sign into Coinbase to complete your ID verification.

Link your payment method

Depending on which country you live in, the type of payment methods you can link will vary. In general, you can choose to link to a Bank Account, Debit Card, Wire Transfer, PayPal, and other various forms of payment.

If you need additional help setting up your Coinbase account, make sure to check out this guide.

How to Set Up a MetaMask Wallet

MetaMask is a software (hot storage) crypto wallet that is mainly used to interact with the Ethereum blockchain. You can access MetaMask through a browser extension or mobile app, which is then used to interact with decentralized applications (Dapps).

To set up your MetaMask wallet, follow these steps below:

Add the chrome extension or download the app

Simply visit the official website to add the chrome extension to your browser, or you can download the Android or IOS app for your mobile device.

Create a wallet

Once you choose Get Started, you will be asked to either Import Wallet or Create a Wallet. Assuming you don’t already have a wallet, choose Create a Wallet. If you already have a wallet, select Import Wallet and then enter your secret phrase.

Create a password

When you create a password, make sure it is strong. Use upper and lower-case letters, numbers, and different symbols to ensure you create the strongest possible password.

Secure your secret phrase

Your secret phrase is like the Web3 version of your Social Security Number (SSN), so you need to treat it as such. When securing your secret phrase, make sure you write it down on a piece of paper and store it in a secure location. For more security, write it down on multiple pieces of paper and store it in multiple secure locations.

Confirm your secret recovery phrase

After writing down your secret phrase you will be asked to enter it again to ensure you wrote it down correctly. Upon entering your phrase, you will be logged into your MetaMask wallet.

For additional help setting up your MetaMask wallet and some other important tips, be sure to check out our guide.

How to Transfer Ethereum (ETH) to A MetaMask Wallet

Now that you’ve got both your Coinbase account and MetaMask wallet set up, you are all set to transfer ETH from Coinbase to MetaMask. The reasons you might consider sending ETH to MetaMask vary, however, the most common reasons are to buy an NFT, to interact with various Dapps, or as a more secure storage option for your ETH.

Regardless of the reason, I’m going to walk you through each step to successfully transfer ETH from your Coinbase account to your MetaMask wallet below.

Step 1: Sign Into Your Coinbase Account

Alex White Gomez

To initiate the transfer of ETH, you will need to start by signing into your Coinbase account to access or buy some ETH.

Step 2: Buy Ethereum (ETH)

Alex White Gomez

If you have already purchased ETH you can skip ahead to Step 3. If not, then simply navigate to the Buy/Sell button at the top of your Coinbase account. Next, select Buy, enter the amount of money you want to convert to ETH, double-check that you are buying Ethereum, then choose your payment method before tapping Preview Buy.

After selecting Preview Buy, confirm that everything looks good. Double check your payment method and how much of your native currency you are converting to ETH. In addition, take notice of the Coinbase fee, as this will affect your purchase price and the amount of ETH you will receive. If everything looks good, select Buy Now.

After you have purchased your ETH, you can view your balance under the Assets tab.

Step 3: Click Send

Alex White Gomez

Once you have some ETH in your Coinbase account, navigate to the top of your account and click the Send/Receive button. Then, choose the amount of ETH you want to send to your MetaMask wallet, make sure you select pay with Ethereum.

Step 4: Copy/Paste Your MetaMask Address to Coinbase

Alex White Gomez

Before sending your ETH, you need to sign into your MetaMask wallet to copy your wallet address. Your wallet address can be found at the top of your wallet profile, under Account.

Your wallet address is 42-characters and will start with “0x”. On the chrome extension it should automatically say Copy to Clipboard when you hover over it. On mobile, you should be able to easily click on the address and it will automatically copy it for you.
Next, paste your Metamask wallet address into the To section in your Coinbase account. You can choose to add a note if you want, but it’s not necessary.

Step 5: Click Continue/Send Now

Alex White Gomez

After pasting your MetaMask wallet into Coinbase, click Continue to review your transfer. Once you have confirmed the transfer looks good, tap Send Now.

Note that you have to pay a network fee to send ETH from Coinbase to MetaMask. This fee varies based on network (blockchain) usage and is not determined by Coinbase. Also note that it can take up to 10 minutes or more to receive your ETH into your MetaMask wallet. Again, this time generally depends on how congested the network is at the time of transfer.

Step 6: Check Your MetaMask Wallet

Alex White Gomez

To confirm that you have received your ETH, log into your MetaMask wallet where you should see a front preview of your new balance. If you have multiple assets in your wallet, you may need to click on the Assets tab to view your ETH.

If you have sent your ETH and you don’t see it in your MetaMask wallet don’t panic, just be patient. Remember, it can take several minutes for it to appear in your wallet. If you ever want to review your transactions, you can go to the Activity tab in your wallet where you have access to all of your transactions on the blockchain via Etherscan.

MetaMask Wallet Security Tips

With a MetaMask wallet comes a lot of responsibility, especially if you have a lot of money or valuables stored in your wallet. Keep in mind that people’s wallets are hacked every day, and not because MetaMask is easy to hack, rather, people are generally unaware of how to keep their wallet credentials safe.

Below are some important tips to keep your MetaMask Wallet as safe as possible.

Don’t store your secret phrase on your computer/device where hackers can easily gain access to. Instead, write your phrase and password down on a piece of paper and lock it away.
Never share your secret phrase with anyone, it doesn’t matter who’s requesting it. It doesn’t matter if it’s your tax person, your bank, or even your own mom, don’t share your phrase.
If you need to back up your Secret Recovery Phrase again, you can find it in MetaMask under Settings > Security.
One of the best options for securely storing your ETH and NFTs is by getting yourself a hardware wallet like Ledger. These keep your secret phrase offline and out of harm’s reach.

To learn more about MetaMask wallet security, how to identify and avoid scammers, as well as some additional steps to secure your MetaMask wallet, check out our comprehensive guide.

Tags ethereum, Metamask, NFT

NFT

Camila Russo Discusses ‘The Infinite Machine’ And Its Upcoming Movie Adaptation

Post author By erikal
Post date June 8, 2022

In conversation with ONE37pm, acclaimed journalist, author and founder Camila Russo opens up about her role as an executive producer on the ‘Infinite Machine’ movie, talks heroes and challengers, and reveals her inclusive message for Pope Francis.

As mainstream society and popular culture begins to truly immerse itself into the perplexing and lucrative world of Web3 and NFTs, traditional industry moguls have sought expertise in their onboarding from thought-leaders native to the space.

Few others support this transition better than Camila Russo, self-titled Chiefess of The Defiant — a leading publication centered around the decentralized finance (DeFi) industry — and critically acclaimed author of the ‘The Infinite Machine: How an Army of Crypto-hackers Is Building the Next Internet with Ethereum’.

Camila Russo

Russo and the Beginnings of ‘Infinite Machine’

Born in Chile, and having spent over a decade working as a journalist for El Mercurio and Bloomberg across Buenos Aires, New York and Madrid, Russo traverses the cryptocurrency landscape with sincerity and an admirable intent to promote diversity, inclusion and equal opportunities.

Polite and candid in character, her spirit is perhaps most quaintly summarized by her creation of the phrase, “We all gonna make a movie (WAGMAM) Ethereans!”

Recounting her initial affiliation to the story of Ethereum and Vitalik Buterin, Russo began the conversation by sharing her favorite moment from the book writing process.

“My favorite part about writing the book was all the interviews I got to do – speaking firsthand to Vitalik, the other Ethereum co-founders, and also the community at large. It was very fun to follow the Ethereum crowd around their hackathons and conferences, and very much immerse myself in that community.”

In the spring of 2018 when Russo began research for the project, there were already a number of bestselling books on the shelf documenting the successes of Bitcoin — ‘Digital Gold’ by Nathaniel Popper and ‘Cryptocurrency’ by Abraham K. White come to mind — but nothing inherently focused on Ethereum.

“I was looking for the most important story to tell, that hadn’t been written yet”, Russo said. “And for me, it was clear that it was Ethereum.”

‘The Infinite Machine: How an Army of Crypto-hackers Is Building the Next Internet with Ethereum’ was published in July 2020, and received generous acclaim within the industry for its revelatory account of Ethereum’s genesis and maturation.

The Book’s Progression To Feature Film

In signing a book deal with Harper Collins, Russo revealed that she retained full intellectual property rights to pursue the work’s progression into a feature film. And in April this year, exercised such rights by selling to Versus Entertainment, who subsequently signed an agreement with Ridley Scott’s Scott Free to co-produce the movie.

Russo is the Executive Producer for the film, giving her creative license to oversee and propose ideas for the script and production process. The funds for the film will be raised from through its accompanying NFT collection.

“I’ve been involved in the production side of the movie, which is not really common for authors […] so at least that gives me a bit more influence on what happens in the film. Shyam [Madiraju] is working on writing the script, and I will have an opportunity to actually read it and provide feedback.”

Screenwriters are often highly regarded for taking a large period of time, such as a World War, and choosing to portray individual stories or battles whose values and emotions encapsulate the entire experience. In researching the chronology of Ethereum, Russo identified whether she encountered any specific events that equally epitomized its history.

“I think one interesting narrative arc that reflects Ethereum’s values well was the whole tension between the founders that wanted Ethereum to be a non-profit foundation, versus the founders that wanted Ethereum to be a for-profit company. Of course, Vitalik ended up making that call and decided that Ethereum would be a non-profit foundation.

And I think that’s very much at the core of Ethereum’s values and ethos – this open protocol that is flexible and that anyone can come and build on […] That moment really defined Ethereum’s history and future, so I think that that’s going to be a very key narrative arc.”

In the 2010 biopic ‘The Social Network,’ screenwriter Aaron Sorkin adapted Ben Mezrich’s book ‘The Accidental Billionaires’ to depict Tyler and Cameron Winklevoss as antagonistic characters in the feud for intellectual property rights of Facebook.

Acknowledging the Greek dramatism of casting heroes against villains, Russo answered the question of whether those individuals who initially supported a profit model for Ethereum – Charles Hoskinson and Amir Chetrit, among others – could be portrayed as adversary characters in the film, similar to that of the Winklevoss brothers in ‘The Social Network.’

Camila Russo

It’s all pretty much conjecture on my part because I haven’t seen the script, so I’m not sure of what direction the writer is going to take. But, you know, just knowing how movies are usually structured, they do kind of have a hero and an antagonist.

“So I’d imagine, even in movies where you do have just one central figure, you do need someone else on the other side to provide some sort of counterweight or challenge to the hero that they need to overcome.”

Russo was politely reluctant to characterize the profit clan as villains— more comfortable with the term ’challenger’. She did though assess that ‘The Social Network’ is a fair comparison to the ‘Infinite Machine’ because of their dual glorification of the monumental shifts in innovation, economic fortunes, and pursuit of entrepreneurialism – in this case with Vitalik Buterin.

Goals for ‘Infinite Machine’

Speaking on her expectations for the ‘Infinite Machine’ film’s success and cultural impact, she stated:

“My main goal would be for the ‘Infinite Machine’ movie to be analogous to the Social Network in what that was for the social media Web2 era. I really hope that it becomes that for web3 and crypto. I think it encapsulates the movement, and kind of brings it to life […] a dramatized but true story”, she concluded.

At the time of The Social Network’s release in Oct 2010, Facebook was a blossoming network of 608 million monthly active users. In comparison, Ethereum’s highest figure came in May 2020 at 20.43 million, down to 14.9 million as of last month.

With these statistics in mind, and with the awareness that this space has only just ascended from its nascent foundations, when the film is released in circa 2024, Russo predicted whether Ethereum could have as much cultural significance and societal impact as Facebook did during its era.

“That’s a great question. I think it’s very, very hard to answer […] I hope so, I think it’d be amazing.”

She reflected upon the exponential growth in user numbers and cultural attention throughout the last market cycle, especially with the emergence of NFTs and adoption of wallets such as MetaMask, before remarking:

“I think if we get a new wave of interest in the next two years, there’s a chance that by the time the movie is out, crypto, Web3, and Ethereum has a comparable social relevance to social media [in 2010].”

Meeting Pope Francis

Two weeks ago, Russo was invited to the Pontifical Urbaniana University in the Vatican City to commemorate the launch of Scholas Occurrentes — an international non-profit established by Pope Francis with a focus on enhancing female education across emerging nations.

Acting as an advisor to the Scholas NFT project, in collaboration with Democracy Earth and the Universal Basic Income token, Russo also gifted Pope Francis with a inscripted copy of her book.

Expressing her honour and gratitude for the opportunity of attendance, she recalled a small portion of her conversation:

“I said that I believe that crypto can be a tool for good and that it’s in-line with your message of openness and inclusivity. I also told him I’m from Chile and that I lived in Argentina where he’s from […] and then I showed him the inscription and he smiled and thanked me.”

Culminating the interview by discussing The Defiant celebrating its third anniversary this month, Russo shared that one-year’s progress has been made on the development of an investor-focused DeFi data platform, intended to complement the publications content.

“The vision for The Defiant going forward is that we’re going from a Web2 media company to Web3 native information platform”, she said, before continuing onto affirm that “the second step will be to start to decentralize parts of The Defiant and use Web3 tools as part of the organization itself.”

Tags Camila Russo, ethereum, Infinite Machine

NFT

What is Ethereum (ETH): A Beginner’s Guide

Post author By erikal
Post date May 30, 2022

By now, you have probably heard of Ethereum. As one of the most utilized blockchains in the world you can book hotel rooms, buy airline tickets, purchase Amazon products, and of course trade NFTs using Ethereum. But, what is Ethereum exactly?

Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of Ethereum, and the blockchain is the most utilized platform for buying, selling, and creating NFTs.

Blockchain technology is still new, so there is a lot to discuss when talking about the most popular blockchain in the world. Here’s everything you need to know about how Ethereum works and everything you can do with its technology.

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What is Ethereum?

Technically speaking, Ethereum is a decentralized, open-source blockchain with smart contract functionality. Okay, great. So what does that mean?

Let’s break it down.

Decentralized describes the process by which the activities of an organization or platform—particularly those regarding planning and decision making—are performed away from a centralized entity. In Ethereum’s case, that means multiple computers make the decisions, not just a single server. These computers are better known as nodes in the blockchain world.

The problem with a centralized server is that if it crashes, so do all the platforms using that server. Whereas with a decentralized platform like Ethereum, if one server crashes, there are still numerous nodes around the world that will still allow Ethereum and its platforms to operate.

Open source refers to something (in this case Ethereum) people can modify and share because the platform is publicly accessible.

A Blockchain is a digitally distributed public ledger that exists on a platform.

Smart contracts are self-executing contracts with terms that are written into lines of code. Smart contracts are often used to cut out the middle man by automating the execution of an agreement using the code. It’s important to note that smart contracts are not viewed as legal contracts just yet.

Great. So how does Ethereum use all of these different terms to improve a user’s experience? Let’s use Uber as an example.

When you need a ride, you open up the Uber app, request a ride, and then a driver picks you up. Upon completion of the ride you pay the driver, then the driver pays a percentage of their earnings to Uber for facilitating the transaction.

In this example, Uber acts as the third party and is paid as such. However, if Uber utilized a smart contract, it could facilitate the transaction automatically using code. Hence cutting out the middle man and saving both the user and Uber money, and enables the driver to pocket more cash, creating a more efficient experience for everyone.

That being said, Ethereum is really just a platform used to run decentralized apps (DApps) worldwide, it’s not a currency like many might believe it to be. One of Ethereum’s goals is to decentralize the internet which in turn gives the power back to the people rather than to a large single entity. Ultimately, Ethereum allows people to connect directly through a string of decentralized computers.

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How does Ethereum work?

Ethereum utilizes a coding language called Solidity to write smart contracts that are the logic that runs decentralized apps (DApps).

In real life, a contract is simply an agreement of “ifs” and “thens”. For example, if I pay my landlord $1,500 per month to rent my house, then he lets me live in it. That is how smart contracts work on Ethereum. Developers write the conditions for their program, then the Ethereum blockchain executes it. But with smart contracts, they do everything for you.

Therefore, smart contracts automatically enforce, manage, perform, and pay according to the terms written by developers. On Ethereum, code is law. That means a contract on Ethereum is the final authority, and no one has the ability to overrule a contract unless something like a decentralized autonomous organization (DAO) has been implemented.

To verify and execute every single transaction, Ethereum uses a proof of work (PoW) consensus mechanism. PoW is a complex mathematical equation that is solved by nodes and used to validate new blocks in the blockchain. Although this mechanism is what makes Ethereum so secure, it also requires a lot of energy from the computers to solve such equations.

The inefficiency of the Ethereum blockchain has many people concerned about the environmental impact that the Ethereum blockchain has on our planet, however, the good thing is that Ethereum is in the process of upgrading to a proof of stake (PoS) mechanism which will still be secure, but much more energy efficient.

To incentivize transactions on the Ethereum blockchain, the network utilizes a cryptocurrency known as Ether (ETH). Ether is used as the medium of exchange and is the native currency of Ethereum.

Ether can be infinitely created, meaning that more and more ETH can be pushed into the Ethereum network. Currently, there is a total supply of 120,920,725 ETH. So how is the value of ETH determined? Essentially, the value of ETH lies in the network’s future potential. As more companies build on top of the Ethereum blockchain, the demand for ETH increases. As a result, the value also increases.

You can easily buy your own ETH using our guide. But before you buy ETH, you should consider where you will store it.

To store your ETH, you can either use a centralized cryptocurrency exchange like Coinbase or set up your own decentralized wallet such as Metamask. The advantage of setting up your own decentralized wallet is that it is more secure. However, due to its high level of security, it’s nearly impossible to recover your wallet and its funds if you lose your secret phrase, which is required to access your wallet.

Moreover, if you really want to keep your digital assets safe, then using the best hardware wallet on the market is a sure way to give you peace of mind when storing any digital assets, including your ETH.

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What is Ethereum Used for?

There are numerous use-cases on the Ethereum blockchain. Below are some of the most recognized use-cases as of today.

NFTS

The Ethereum blockchain is best known for being the go-to blockchain for buying, selling, and creating NFTs. The most popular NFTs to date including CryptoPunks, Bored Ape Yacht Club, and VeeFriends have all been created on the Ethereum blockchain.

Wait a minute. Isn’t the Ethereum blockchain inefficient? Why not use a more efficient blockchain that costs less to transact and is better for the environment? It’s simple.

Ethereum is the leading NFT blockchain for a reason. When NFTs first became popular in early 2021, it was the result of CryptoPunks and the popular Nyan Cat Meme selling for large sums of money and making headline news. Since these NFTs both live on the Ethereum blockchain, the trend continued.

As more people began to create NFTs, they made sure to utilize the blockchain where all the attention had already been—the Ethereum blockchain. As a result, Ethereum became known as the go-to blockchain for those who wanted to sell their NFTs for a substantially higher price compared to other blockchains, which at that point, were far behind Ethereum in popularity.

In addition to Ethereum’s popularity, the security and its smart contract functionality are a big pro when it comes to NFTs. Many of us in the Web3 space are innovators, and Ethereum just so happens to be the platform where innovators can thrive and create whatever they want, while still ensuring security.

Decentralized Finance (DeFi)

Another application also founded using the Ethereum blockchain is decentralized finance (DeFi) platforms such as PancakeSwap. DeFi platforms enable people to lend and borrow funds from others, invest in assets, trade crypto, insure against risks, and earn interest in savings accounts.

The best part about DeFi platforms is that, unlike traditional centralized exchanges, DeFi exchanges use Ethereum’s smart contract functionalities to provide services that don’t need intermediaries. Saving the users’ fees, and the exchanges time and money.

Decentralized Autonomous Organization (DAO)

Another function discovered by Ethereum developers is a decentralized autonomous organization (DAO). A DAO is a blockchain-based organization that operates without any central authorities.

Instead, they are governed by smart contracts and the administrative decisions are voted upon by community members who are also stakeholders in the organization. At the end of the day, DAOs are open-source and community-governed, just like the Ethereum blockchain.

Overall, the Ethereum blockchain is still considered a new technology. All of its use-cases are still being optimized, and other use-cases are yet to be discovered. With that, it’s safe to say the potential of Ethereum seems very promising. With more than $27 billion of NFT sales volume alone, Ethereum is set to remain the premium blockchain for years to come.

Ethereum is a decentralized, open-source platform best known for NFTs and its cryptocurrency, ETH. The blockchain technology that powers Ethereum enables secure digital ledgers to be publicly created, viewed, and maintained—creating the ultimate transparent platform for creators and consumers alike.

How to buy Ethereum

To buy Ethereum, you’ll need to set up a digital wallet, purchase Ethereum on an exchange, and transfer the ETH to the wallet. You can read about different wallets, exchanges, and more in our detailed guide on how to buy Ethereum here.

How much does it cost to buy 1 Ethereum?

The current price of 1 Ethereum is $1910.555 per (ETH / USD) as of June 9, 2022. Ethereum is 60.94% below the all time high of $4891.70. Keep in mind that the price of Ethereum is constantly fluctuating depending on market conditions. You can choose to buy however much you want and if you hold, your total amount will change. For example, if you bought $1,000 USD in Ethereum on March 13, 2020, it would be worth about $14,700 today.

Tags ethereum

NFT

ENS Founder Discusses Surge in Popularity, Goals for Mass Adoption

Post author By erikal
Post date May 25, 2022

It’s been a record shattering month for Ethereum Name Service (ENS), with reported revenue of over $8 million for the month of May and over 1,326,905 domain names registered total.

“May is now an All Time High for every single ENS metric we track,” said Nick Johnson, Founder and Lead Developer at ENS in a tweet on Monday. “Registrations, renewals, revenue (ETH & USD) and income (ETH & USD).

Ethereum Name Service (ENS) domains are secure domain names for the decentralized world. An ENS domain provides a way for users to map human readable names to blockchain and non-blockchain resources, like Ethereum addresses, IPFS hashes, or website URLs.

ENS domains can be registered through ens.domains, or bought and sold on secondary markets.

After creating an Ethereum wallet, users receive a wallet address to send their Ethereum assets to and from. The difficulty with this is that these standard addresses (a string of randomly generated numbers and letters) are too difficult to memorize and use consistently.

An ENS domain makes this easier. After registering or purchasing a domain name, the ENS resolves the address and the domain becomes the identifier for the specific address that the wallet is registered to (i.e. firstnamelastname.eth).

Despite being around since 2017, ENS has recently experienced a surge, with 160,000 unique users utilizing the network this month. 3-digit and 4-digit numbers, popular first and last names, brand names, and company names are amongst the most popular domains.

ONE37pm spoke with ENS Founder Nick Johnson, who also goes by nick.eth, about the service’s rising popularity, the similarities and differences to the .com era, and what he hopes for the future of the service.

Why are ENS Domains Suddenly Surging in Popularity?

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“We’ve reached something of an inflection point with adoption,” Johnson said. “ENS is integrated widely enough that people expect it and it’s surprising when something doesn’t support it.”

Users are noticing the value in holding an ENS domain; using it not only as a form of digital identity, but a way to flex.

NFT Twitter user Bloom Capital, owns over 600 ENS domains. Some notable ones include habibi.eth, naruto.eth, and wnba.eth.

“First and last names and brands are a hit and the most desirable at the moment,” Bloom Capital said. “There seems to be a high floor for first names like Richard, John, Nick. Brands have been slowly coming into this space as we’ve seen with Hublot.eth, Budweiser.eth, and Gucci.eth, so we’ll definitely be seeing some domains going for high values in the near future.”

Similarities and Differences to the .com Era

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“There’s definitely some of the same patterns from the .com era,” Johnson said. “People speculatively registering names in the hope of reselling them to someone who wants to use the name.”

However, Johnson notes a difference in trend for distinctive names, numbered digits and emojis.

“The trend for distinctive names like digits and emojis is quite different,” Johnson said. “It’s more a collector mindset than a flipper.”

Unlike the .com era, number ENS domains are currently more popular than names. This is because many NFT collectors like to own the ENS domain associated with their favorite NFT, such owning as 4635.eth for Crypto Punk #4635.

Communities Formed Within ENS

Users are building communities around shared ownership like the 10k club, a web3 social club for ENS holders 000-9999.

Other ENS name based communities include groups for hyphens, letters, animal names, emojis etc.

“We’ve formed a real organic community,” Johnson said “And it’s out of that this latest excitement for numbered names has arisen.”

What’s Next for ENS?

Users think ENS’s popularity will continue to expand into web3 identities for brands and businesses globally. This means ens domains in different languages.

“As ENS grows we will see implementation of web2 companies utilizing ENS into their own businesses,” Bloom Capital said. “ENS could make it way easy for companies to process payments, like Gamestop implementing ENS to make online purchases for games and skins as another form of payments.”

Many are also speculating a similar surge for 5 and 6 digit names. However, Nick Johnson says he’s not sure 6 digit names will have the same popularity.

“I think [3 digit and 4 digit names] line up well with the exclusivity that attracts people to 10k PFP collections,” Johnson said. “5 digit names have actually sold out now too, but I think 6 digits may be too many, even for the degens!”

“Next thing we want to achieve is truly universal usage,” Johnson said. “That’s going to require cheap or free issuance of subdomains integrated directly into people’s wallets.”

Tags ens domain, ethereum

NFT

What Is Arbitrum?

Arbitrum layer-2 scaling solution logo and font on a blue background.

Although Ethereum is the most preferred blockchain, it does lack speed and scalability. That is why layer-2 solutions such as Arbitrum have been created.

Arbitrum is a layer-2 scaling solution that is designed to increase speed and scalability, while still retaining the privacy of Ethereum’s mainnet, to enhance Ethereum smart contracts.

There are several layer-2 scaling solutions currently available, but Arbitrum offers some additional features that others do not. In this article, I’m going to walk you through what Arbitrum is and how it works.

What is Arbitrum?

Arbitrum was created to allow developers to execute unmodified Ethereum Virtual Machine (EVM) contracts and Ethereum transactions on layer-2 technology, while still maintaining the security that the Ethereum mainnet offers its users.

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This layer-2 solution aims to solve the long transaction times and high gas fees experienced when using the Ethereum blockchain. Arbitrum does this by using a technique called a rollup.

In simple terms, a rollup takes multiple Ethereum transactions and rolls them up into a single piece of data before submitting them all to the main Ethereum blockchain. This saves space, increases transaction speed, and reduces the cost to transact.

The Arbitrum initiative was started by Ed Felten, Steven Goldfeder, and Harry Kalodner. All of whom are blockchain experts on a mission to make cryptocurrency a better experience for the world.

How does Arbitrum work?

Arbitrum is an optimistic rollup. This particular rollup allows smart contracts on Ethereum to scale by sending data and messages between smart contracts on the Arbitrum layer-2 chain.

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Scalability is increased because the transaction processing occurs on layer-2, while all the records of the transactions still appear on the Ethereum mainnet. As a result, the transaction speed and overall efficiency is increased.

The future of Arbitrum

The future of Arbitrum includes other modes as well: the AnyTrust channel and the sidechain.

Individual nodes can participate in the Arbitrum chain, as they do in many other blockchains. Validator nodes monitor the chain’s status and work with full nodes to integrate layer-1 transactions.

Aggregators who transfer transactions to the layer-1 chain are rewarded in ETH, while other network contributors, such as validators, get user transaction fees.

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This layer-2 solution project adds a challenging stage for block rollup, in which additional validators evaluate the block’s validity and issue a “challenge” if they feel it is incorrect.

If the block is proved to be incorrect or the challenge is proven to be false, the assets of the validator who lies will be seized. This procedure assures that all validators always play by the rules and accept the penalties if they do not.

The Arbitrum Virtual Machine is the platform’s unique virtual machine (AVM). The AVM is the execution region for Arbitrum smart contracts, and it sits on top of EthBridge, a smart contract collection that interacts with the Arbitrum chain. Smart contracts that are compatible with Ethereum are automatically translated to operate on the AVM.

Benefits of Arbitrum

When compared to other layer-2 solutions, Arbitrum has many benefits, including:

Low cost

Considering Arbitrum is a layer-2 solution, the highly efficient rollup technology cuts costs to a minimum. Even though transaction costs are lower, Arbitrum still provides nice incentives for its validators.

High EVM compatibility

Arbitrum is EVM-compatible, meaning that developers from the Ethereum blockchain can use any language, such as Solidity and Vyper, to build on Arbitrum. No new language is necessary to learn.

Developer tools

Developers can use tools that already exist on Ethereum, which means there are no plugins that are necessary to download. It’s basically a turn-key solution for Ethereum developers.

Expanding ecosystem

Arbitrum has fostered partnerships with multiple Ethereum DApps and infrastructures, including DODO, Sushiswap, Uniswap, and many more.

As the world of Web3 continues to expand and people desire more optimized technologies, solutions such as Arbitrum will continue to transform the way we view and utilize blockchain technology.

Tags arbitrum, ethereum

NFT

Ethereum vs Ethereum Classic: What is the Difference?

Post author By awhitegomez
Post date March 18, 2022
No Comments on Ethereum vs Ethereum Classic: What is the Difference?

If you’re like me, then you might be wondering what the difference between Ethereum and Ethereum Classic is. In this article, we’ll take a look at both and see what the similarities and differences between the two really are.

The main difference between Ethereum Classic (ETC) and Ethereum (ETH) is that ETC is a speculative digital asset with a fixed supply. Whereas ETH is the more popular and accepted version that is widely traded, with no fixed supply. Both are the result of a hard fork that occurred when Ethereum Classic was hacked in 2016.

Now, let’s get into the main difference between Ethereum and Ethereum Classic.

What is the difference between Ethereum and Ethereum Classic?

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One of the main differences between Ethereum is that it has plans to migrate from proof of work (PoW) to a new system called proof of stake (PoS). Ethereum Classic, however, intends to keep traditional mining on its own blockchain after Ethereum migrates to PoS.

Also, similar to ETH, new ETC is issued to the circulating supply as a reward for miners and has a maximum supply of 210,700,000 coins, whereas ETH has no fixed supply.

Originally, the Ethereum blockchain was created as a single blockchain in 2015, but in June of 2016, the blockchain was hacked resulting in $60 million of stolen crypto. As a result, a hard fork was performed to secure the network, hence how the new Ethereum emerged and created two separate versions.

Now that we know the difference between ETH and ETC, we can discuss how each one is used.

What is Ethereum Classic (ETC)?

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Ethereum Classic is an open-source blockchain that is the result of a blockchain split that occurred from a hack in the original Ethereum network. The split resulted in two separate blockchains, Ethereum Classic and the new Ethereum. Now, ETC is Ethereum Classic’s native currency that is used to power transactions and smart contracts on its network.

Aside from securing the network, the hard fork also resulted in the return of all the stolen funds to the original owners. Since the split, there have been continued upgrades to the Ethereum Classic network. The main aim of Ethereum Classic is described as a focus on immutability, popularly expressed as “code is law.”

What is Ethereum (ETH)?

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According to Ethereum.org, “Ethereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It’s a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications you can use today.”

Ethereum is a technology that is used for many things including, digital currency, global payments, and applications. It’s also decentralized and open to everyone who has internet.

Ethereum’s DeFi system is 24/7, meaning that you can send, receive, borrow, earn interest, and send funds anywhere in the world at any time of day. However, Ethereum isn’t just digital currency, it can also represent anything you own in the form of an NFT.

Also, you can use Ethereum without giving up any of your personal info, all you need is a wallet. Whereas with the internet we know and love today, we have to give up control of our personal data.

Does Ethereum Classic (ETC) follow Ethereum (ETH)?

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Ethereum Classic (ETC) does not follow the same price trajectory as Ethereum (ETH). Currently, ETC is trading at $26, and ETH is trading at $2,800. One of the main reasons for the price difference is that ETC has a fixed supply, and ETH does not.

Does Ethereum Classic (ETC) have a future?

Currently, the main focus for ETC is to support the concept of code is law. Essentially, code is law simply means that no one has the right to censor the execution of code on the ETC blockchain.

Ethereum Classic still facilitates running smart contracts and offers the benefit of decentralized governance. In other words, the contracts can be enforced without a third party involved, such as a lawyer or another overseeing entity.

At the end of the day, Ethereum continues to reign supreme over Ethereum Classic as the preferred blockchain for buying, selling, and creating NFTs.

That’s not to say that ETC doesn’t have a future, it just means that ETH will likely continue to be the more trusted and popular blockchain of the two.

Tags ethereum, ethereum classic

NFT

What Are Ethereum Rollups?

Post author By awhitegomez
Post date March 9, 2022
No Comments on What Are Ethereum Rollups?

Ethereum gas fees can get expensive, so expensive in fact, it can be difficult to even use the blockchain. Sometimes the fees to pay for a transaction are more expensive than the asset you’re creating or purchasing, and that just doesn’t seem right.

However, what if there was a way to reduce these fees and increase transaction efficiency? Well, now there is using rollups!

A rollup takes multiple Ethereum transactions and rolls them up into a single piece of data before submitting them all to the blockchain. This saves space, increases transaction speed, and reduces the cost to transact.

Before we get into the technicalities, let’s talk about how the Ethereum blockchain works, and the different types of rollups.

What is a rollup?

Ethereum blocks are limited to the amount of data they can hold. For example, let’s say a block can only do 100 transactions. This means that if 100,000 people want to do a transaction at the same time, Ethereum will pick 100 of the highest bidding fees first.

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Since gas fees are based on the current demand on the blockchain at a given moment, these fees can become very expensive. But, since a transaction can simply be a piece of data as well, what if you could include ten transactions in one piece of data.

You would essentially have scaled to 1,000 transactions per block as opposed to 100, simply by using the data portion instead of the transaction portion.

Rollups are layer 2 scaling solutions that perform transaction operations off the main Ethereum blockchain, but still, post the transaction data onto layer 1. Considering the transaction data is on layer 1, rollups are secured by the same layer 1 security measures. In fact, this is the defining feature that rollups offer to users.

Rollups are useful because they reduce gas fees, increase transaction throughput, and expand participation. One question you may have about rollups is how does Ethereum know that the posted data is valid and wasn’t submitted by someone who is trying to take advantage of the system?

Ultimately, it depends on the specific rollup implementation, but in general, each rollup deploys a set of smart contracts on Layer 1 that are responsible for processing deposits and withdrawals and verifying proofs. Lets take a look at the two types of rollups currently utilized on the Ethereum blockchain and how they work.

Optimistic Rollups (fraud-proofs)

Optimistic rollups assume transactions are valid by default and only runs computation via a fraud-proof, meaning it only presents evidence that a state transition was incorrect, in the act that someone decides to challenge the transaction.

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Optimistic rollups sit in parallel to the Ethereum Mainnet on layer 2 and don’t perform any computation (mathematical equations) by default. Instead, after the transaction is complete, they submit the new state to the Ethereum Mainnet, essentially notarizing the transaction.

Optimistic rollup transactions are written into the main Ethereum blockchain, further optimizing transactions by reducing the cost of gas.

Advantages of optimistic rollups include:

Lower gas fees
Increased throughput
Smart contract capability
Security (guaranteed by the Ethereum Mainnet)

Disadvantages of optimistic rollups:

Long withdrawal time (challenge periods can last for weeks)
- If a fraudulent transaction is discovered, the rollup will automatically call a fraud-proof and run the transaction’s computation using the available written data, leading to long withdrawal times if the transaction is challenged.

There are several applications of optimistic rollups that you can integrate into your own decentralized apps:

Zero-knowledge rollups (validity-proofs)

Zero-knowledge rollups (ZK rollups) bundle thousands of transactions off of the main Ethereum chain and create a cryptographic proof which is known simply as validity proof, aka SNARK (succinct non-interactive argument of knowledge), which is posted to the Ethereum Mainnet.

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The smart contract for a ZK rollup keeps the data of all transfers on layer 2 and the data can only be edited with validity proof. Meaning, ZK rollups only need validity proof, opposed to all the transaction data. This function decreases the cost to transact due to less data being included.

When it comes to ZK rollups, there is minimal hesitation when moving assets from layer 2 to layer 1, considering the validity proof has already been approved by the ZK rollup and has already authorized the transaction.

Advantages of ZK rollups include:

Near-instant transfers
Not vulnerable to the attacks that optimistic rollups may be affected by
Still secure and decentralized

Disadvantages of ZK rollups:

Validity proofs are extreme to compute for smaller applications with less on-chain activity
A user can influence transaction ordering
Some rollups don’t offer Ethereum Virtual Machine (EVM) support

As well, there are numerous applications of ZK rollups that you can integrate into your own decentralized app:

Overall, rollups are Ethereum’s solution to solve high gas fees, slow transaction times, and increase scalability.

Applications like Immutable X are being used for large-scale NFT projects like Gary Vee’s Book Games and offer consumers a cheaper and more efficient way to collect their favorite NFTs.

Tags ethereum, rolllup