Ethereum

United

<p>Adam Cochran, a crypto analyst, is urging Coinbase, the largest cryptocurrency exchange in the United States by trading volume, to&nbsp;<a class="editor-rtfLink" href="https://twitter.com/adamscochran/status/1749786680121258274" target="_blank" rel="noopener nofollow">prioritize</a>&nbsp;the creation of an insurance fund for its users rather than focusing on diversifying its Ethereum client infrastructure.</p> 
<h2 id="coinbase-should-most-importantly-have-an-insurance-fund">Coinbase Should, Most Importantly, Have An Insurance Fund&nbsp;</h2> 
<p>In a post on X, Cochran thinks the exchange’s current approach to Ethereum client diversity is “inadequate.” Instead, the analyst recommends that Coinbase focus on mitigating the risks associated with Ethereum’s potential “supermajority” failure.</p> <a href="https://www.tradingview.com/x/SYjFX6Bn/" rel="nofollow noopener" target="_blank"><img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/SYjFX6Bn/" alt="Ethereum price trending downward on the daily chart | Source: ETHUSDT on Binance, TradingView" width="1233" height="592"></a> 
<p>Ethereum is a leading smart contracts platform, allowing users to transact and developers to deploy smart contracts powering apps, some with billions in total value locked (TVL). However, Ethereum’s leading node operators at the backend rely on Geth, a validator client.&nbsp;</p> 
<p>Data <a href="https://clientdiversity.org/#distribution" target="_blank" rel="noopener nofollow">shows</a> that the client is used by over 75% of all node operators. Through the open-source software, Ethereum remains up-to-date, and users can access funds and more. Besides <a href="https://bitcoinist.com/flaw-ethereum-geth-devastating-lido-finance/" target="_blank" rel="noopener ">Geth</a>, there are options, including Besu and Nethermind.</p> 
<p>The analyst pointed out that a “supermajority” failure, in which most Ethereum nodes simultaneously fail, could lead to significant disruptions and losses for Coinbase users. The “supermajority” failure, as the analyst points out, is if Geth fails, a possibility that would halt the operation of the network, even leading to a split. Cochran prioritizes creating an insurance fund or allowing users to use alternative Ethereum clients to address this risk.&nbsp;</p> 
<p>The insurance fund will allow Coinbase to compensate users in this event. Binance, the world’s largest crypto exchange by trading volume, already has an&nbsp;<a class="editor-rtfLink" href="https://www.binance.com/en-KZ/margin/insurance-fund" target="_blank" rel="noopener nofollow">insurance fund</a>&nbsp;to compensate users in case of a hack. Besides the fund, Cochran thinks giving users options to opt-in on alternative clients gives them more autonomy, empowering them to take over their security.&nbsp;</p> 
<img loading="lazy" decoding="async" class="size-full wp-image-276708" src="https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot518.png?resize=932%2C450" alt="Binance insurance fund | Source: Binance" width="932" height="450" srcset="https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot518.png?resize=932%2C450?w=932 932w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot518.png?resize=932%2C450?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot518.png?resize=932%2C450?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot518.png?resize=932%2C450?w=750 750w" sizes="(max-width: 932px) 100vw, 932px" data-recalc-dims="1"> 
<h2 id="nethermind-knocked-out-by-a-bug-8-of-ethereum-node-operators-impacted">Nethermind Knocked Out By A Bug, 8% Of Ethereum Node Operators Impacted</h2> 
<p>This preview comes a day after Coinbase said it was looking to diversify its Ethereum clients, expanding its base away from Geth.&nbsp;</p> 
<p>In a post on X, the exchange&nbsp;<a class="editor-rtfLink" href="https://twitter.com/CoinbaseCloud/status/1749614211532198311" target="_blank" rel="noopener nofollow">said</a> it has been constantly evaluating clients since 2020. It plans to update the community on its next action step by the end of February.</p> 
<img loading="lazy" decoding="async" class="size-full wp-image-276705" src="https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot517.png?resize=1024%2C591" alt="Ethereum execution clients diversity | Source: clientdiversity.org" width="1024" height="591" srcset="https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot517.png?resize=1024%2C591?w=1034 1034w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot517.png?resize=1024%2C591?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot517.png?resize=1024%2C591?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot517.png?resize=1024%2C591?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot517.png?resize=1024%2C591?w=750 750w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
<p>On January 21, Nethermind, an Ethereum client used by&nbsp;<a class="editor-rtfLink" href="https://clientdiversity.org/#distribution" target="_blank" rel="noopener nofollow">roughly</a>&nbsp;8% of all node operators, was&nbsp;<a class="editor-rtfLink" href="https://github.com/NethermindEth/nethermind/issues/6588" target="_blank" rel="noopener nofollow">temporarily</a> knocked out due to a bug. Since the reliability of some Ethereum node operators using Nethermind dropped, the network penalized them.&nbsp;</p>

Analyst: Coinbase Should Prioritize Insurance Fund Over Ethereum Client Diversity

Mục lục

Bitcoinist

Các bài viết khác được xuất bản trên 24 thg 1, 2024

Former BitMEX CEO Places Bearish Bet On Bitcoin, Expects Dip Below $40k

Introducing MemeCoinDAO.ai: Pioneering DeFi’s Next Chapter

DWF Labs Grants $500,000 to AirDAO

XRP prices dip 10% in 7 days and the reasons are…

Korea ST Exchange forms partnership with Finhaven to bolster South Korean security token industry

North Korean Cybercriminals and the Rise of Cryptocurrency Attacks

Tham gia bản tin miễn phí của chúng tôi để cập nhật tin tức về tiền điện tử hàng ngày!