Crypto Market Overview Jule 4th | Dex-Trade
Buterin's Counterarguments Against PoS Critics
In a tweet on Sunday, Ethereum founder Vitalik Buterin continued his polemic against Proof-of-Stake opponents and responded to Bitcoin evangelist Jimmy Song's claim that Proof-of-Stake (PoS) is the worst consensus system because how exactly she solves the “Byzantine Generals Problem.” “Pro-tip: if there’s a long-established tradition of people debating A vs B based on deep arguments touching on math, economics and moral philosophy, and you come along saying ‘B is dumb because of a one-line technicality involving definitions’, you’re probably wrong,” — Buterin wrote. Recall that the “Byzantine Generals Problem” is that the system requires consensus on several factors, including financial. At the same time, users cannot trust either each other or a centralized ecosystem, which, by definition, should not be in the blockchain. In the case of BTC, the Proof-of-Work (PoW) protocol prevents unscrupulous actions of users, but PoS directly depends on any of their actions. Buterin announced the transition of the Ethereum network to PoS at the end of this year. This is primarily due to the energy efficiency of the protocol, which does not require huge power costs for mining and transaction confirmation. In fact, the programmer is defending his decision, which, of course, is not perfect. As well as any other options.
Former Google CEO Is Skeptical About Metaverses
The ex-Google CEO, Eric Schmidt, said that at the moment there is confusion regarding the concept of the metaverse and how it is perceived by people, because even despite the frank interest in it from such giants as Meta, there is still no clear and systematic understanding how it will affect people's lives. “There’s not an agreement on what the metaverse is, even though one company has changed its name in anticipation of defining it.” Last year, Schmidt dug into Facebook again and said he didn't think Meta could be the company to form its own metaverse, even if the form it would take was not yet decided. But it seems that the lack of a clear concept of the metaverse does not prevent the implementation of such projects, but rather expands the boundaries of their implementation. Over the past two years, not only the world's largest companies have invested billions of dollars in promoting their own metaverses, but some states have openly declared their interest in such a concept. For example, in May of this year, South Korea announced that it intends to allocate $177 million for the development of metaverses for national companies interested in this technology.
Singapore-based Crypto Exchange Vault Freezes Withdrawals and Trading Operations
Due to massive withdrawal attempts of $197.7 million in excess funds since June 12, 2022, Singapore-based Crypto lender CeFi Vauld has suspended "all withdrawals, trading and deposits" for its users and said it intends to "apply to the Singaporean courts" requesting a moratorium. It’s noteworthy that back in May of this year, Vauld literally boasted that they had $1 billion worth of user assets under their management. In an email from the company, sent out on June 16, it was said that despite the massive withdrawal of funds, it will "continue to operate as usual." But just 18 days later, Vauld announced that it was exploring "potential restructuring options." However, one could have guessed that something was going wrong on June 21, when the company's CEO, Darshan Bathija, announced the reduction of the Vauld team by 30%. By the way, one of the first investors of the company was Three Arrows Capital, which went bankrupt last week, but last year it withdrew from the sponsors of Vauld. However, now the crypto exchange intends to freeze the funds of its clients until the replacement of the keys to their wallets. The legality of such a decision is extremely doubtful, but if they want to “ride out the storm” in this way, then this is unlikely, since in the future investors will consider investing in Vauld far from the best idea.
