SafeStake

What does the future hold for Ethereum?Crypto is becoming more and more popular, but with some unfortunate happenings with some big names in the industry recently, the market is changing again, and regulatory agencies are really starting to pay attention.In August of this year, shortly before Ethereum’s “Merge” that converted it from Proof-of-Work to Proof-of-Stake, rumors were already spreading on the network that the blockchain could be influenced by OFAC. And in September, the Securities and Exchange Commission (SEC) did a dramatic about-face, changing their view of Bitcoin and other cryptocurrencies as “goods” and placing them under surveillance just like any other security.Already over half of the blocks validators propose on Ethereum are OFAC (U.S. Office of Foreign Assets Control) compliant, and the number grows each day.This trend is evidenced by MEV Watch, a watchdog group that is currently reporting these numbers, and shows that of 64% of proposed blocks go through Flashbots’ MEV (Maximal Extractable Value) relays that are currently complying to OFAC’s orders. Currently, Flashbots’ share of the MEV relay market is 49%Now, you might be asking yourself, what is MEV? MEV allows validators to maximize their rewards when proposing blocks by rearranging the order of transactions in the block via MEV relays. <img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/06cb1fe52f0a4b0c80315338a4a32ac6.jpeg" /> At the same time,the total number of blocks processed through Flashbots’ relays has almost doubled. You can see that on September 25 they were processing 2.21 thousand blocks, and on October 25 they were processing just over four (4) thousand.It’s important to note that Flashbots has said they are advocates of decentralizing the source code development, which should result in a gradual easing of the censorship happening now.However, this alone is not a complete solution to the problem. And although a scenario where 100% of the proposed blocks fall under the influence of OFAC seemsunlikely, it’s no longer possible to ignore the problem.Will Ethereum fall under the SEC’s control?While nobody knows that answer for sure, it’s evident they are going to put up a fight. On September 15, SEC Commission Chairman Gary Gensler commented on the Ethereum “Merge”, saying that all PoS blockchains must be under SEC jurisdiction.He explained the reason why quite simply. He said such “coins” have the signs of investment instruments. He went on to allege that investors do not buy the cryptocurrency itself, but only a part of the conditional “cost” of the project.But this is not the most important thing. In a possibly precedent-setting case against Sparkster, a blockchain solutions company, the SEC said that Ethereum transactions are already under U.S. jurisdiction. Why? They argued it was the simple geolocation of Ethereum nodes and network validators in the U.S.And in late September, the head of analytics firm Labrys, a firm administered by the U.S. Treasury, said that 45% of Ethereum validators already support OFAC sanctions.this.If the number of censored blocks continues to grow, talk of decentralization solving the problem will continue to diminish. As we see it, most of the “problem” transactions will not be included in blocks, and the processing time for the ones that do will increase significantly.How likely is this scenario?Eversheds Sutherland representatives Adam Pollet and Andrea Gordon believe that such an outcome cannot be ruled out. They point out that the SEC is now using “deterrence tactics”, and its stance is, “Register your crypto with us voluntarily, or face possible sanctions.”It also confirms their desire to “fragment” the market, in their words, “for the sake of counteracting a conflict of interest.” This is also indicated by findings in the latest FSOC (Financial Stability Oversight Council) report..But, it is unlikely that the Ethereum network will ever be under the full control of the SEC, as the legitimacy of the agency regulating a de facto transnational project would always be held in doubt and resisted.It could, however, have an overwhelming influence on it andenough to apply sanctions against validators in the United States that don’t follow their rules. And, of course, if Ethereum is recognized as a security, then most other PoS tokens (BTC is PoW), will also fall under the threat of being assigned to this category.In the meantime, while the U.S. government is trying to resolve issues with regulating cryptocurrencies, we continue to develop the SafeStake project and increase the number of validators and operators on our testnet.SafeStake offers a superior experience for those participating as validators and node operators, with a reward pool up to 5M STATE tokens! The entire ETH ecosystem will benefit from two stages of the Galileo Testnet, which will serve as proof-of-concept, allowing us to bring SafeStake to Ethereum mainnet. heYou can read <a href="https://parastate.medium.com/safestake-incentivized-galileo-testnet-launches-stage-1-324b19255d99?source&#61;social.tw" rel="noopener noreferrer nofollow">this article</a> to understand the guidelines, selection criteria, and rewards! Additionally, we will soon be upping the rewards and prizes for active validators and operators, so stay tuned for more about that! <a href="https://github.com/ParaState/SafeStake" rel="noopener noreferrer nofollow">See the guidelines on our Github</a>About ParaStateParaState takes Ethereum chain support to the next level through WasmEdge, developing and executing high-speed smart contracts with built-in Ethereum compatibility (EVM and EWASM) and interoperability in next-level programming languages like Rust, C &#43;&#43;, and Golang.Parastate is participating in ETH 2.0 PoS by introducing a new tech stack called SafeStake, a trust-minimized, middle layer that promotes decentralized ETH 2.0 staking. SafeStake is the first staking pool to implement distributed validator technology (DVT). It is written in Rust and uses HotStuff consensus and Threshold Signature architecture to provide robust security and reliability for validators securing the Ethereum network.Join the ParaState community:<a href="https://www.parastate.io/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://medium.com/ethereum-on-steroids" rel="noopener noreferrer nofollow">Blog</a> | <a href="https://twitter.com/parastateio" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/ParaState" rel="noopener noreferrer nofollow">Telegram</a> | <a href="https://discord.com/invite/zFS3Mnfpwj" rel="noopener noreferrer nofollow">Discord</a> | <a href="https://github.com/ParaState" rel="noopener noreferrer nofollow">Github</a>| <a href="https://medium.com/ethereum-on-steroids" rel="noopener noreferrer nofollow">Medium</a>

Regulatory agencies are stepping on crypto’s toes!

SafeStake

29 नव॰ 2022 को प्रकाशित अन्य लेख

South Korea freezes Terra co-$104M founder's assets

Vitalik Buterin on Singapore regulatory approach

Why Composable Application Architecture Is Key to Scalability

A special weeks of celebration for the warriors holding the Binance Soulbound token

Michael Saylor criticised over Bankman-Fried remark

Djinn Guild: WL & NFT Giveaway

रोजाना क्रिप्टो अपडेट पाने के लिए हमारे मुफ्त न्यूजलेटर से जुड़ें!