Ethereum Roadmap Explained

Ethereum Roadmap Metropolis
Ethereum Roadmap Metropolis

Ethereum with its exceptional features like programmability, flexibility, synergy, modularity, and philosophy of humility is aiming to rule the decentralized world. While the founder Vitalik Buterin has an ambitious roadmap to strengthen the community further, let’s take a closer look and explore what’s in store with Ethereum roadmap  –

Ethereum Roadmap

Vitalik Buterin, the Founder of Ethereum, stresses that to push Ethereum to the next level – four issues need to be resolved – consensus safety, smart contract safety, privacy and the most important of all – SCALABILITY.

Here are the different stages worked on to make Ethereum robust, secure and scalable.

ETHEREUM ROADMAP
ETHEREUM ROADMAP

Metropolis:

Metropolis claims to be a faster, lighter and more secure version of Ethereum. It would also provide enhanced flexibility to developers. The Metropolis phase is split into two releases- Byzantine and Constantinople

Byzantine – Executed in October 2017

Byzantine has a total of nine Ethereum Improvement Proposals [EIP] that once implemented results in enhanced security, scalability and privacy. It would also help in lowering fees for users and faster blocks. Some of the significant changes are –

Privacy

With Metropolis phase, the users would have the ability to perform anonymous transactions, with the new privacy tool – zk-SNARKs Or zero-knowledge succinct non-interactive arguments of knowledge. This zero-knowledge proof would help Ethereum to store some of the contact variables [that are private to users] with them instead of floating them onto blockchain network.

What is A Zero Knowledge Proof?

In laymen terms, a zero-knowledge proof is the ability to prove the truth of a statement, without passing on any other additional information beyond the statement under evaluation

Let’s take an example – If you have a bunch of keys and want to make a statement “it has a key to your house,” you can prove that by just unlocking the house with the designated key, with revealing which key the key that belongs to your house.

Ethereum, in addition to zk-SNARKS, would also get ring signatures, just to provide the best of both the world to its loyal community.

Account abstraction

As mentioned earlier, Metropolis would help in providing flexibility to smart contracts developers, to support that Ethereum would now support a concept called as Abstraction. The technique improves the programmers to provide only high-level concepts and to avoid overloading the user with details.

This would help the end users to have more control over their private keys, with an added ability for contracts to pay mining fees. Abstraction technique would also help in reducing the risk of getting hacked by quantum computing.

Mining difficulty

The phase would also target to initiate the movement of moving from a miner-based PoW to a validator-based PoS system, i.e., Ethereum to work on Proof of Stake rather than Proof of Work. This move would be challenging for miners and make it less profitable for them.

Constantinople – Not set date, but expected in 2018

The release Constantinople with no set timeline will be an introductory phase for upgrading Ethereum from Proof of Work [PoW] to Proof of Stake[PoS] to be called as Casper Protocol. During the upgrade process majority of the transaction would remain as PoW on Ethereum network, but every 100th transaction would be PoS with Constantinople release. Eventually, the entire Ethereum network would have a PoS protocol.

Casper protocol has two versions-

  1. Vlad Zamfir leads one
  2. FFG [ friendly finality gadget] that is being driven by Vitalik Buterin.

There would also be “STAKERS” – one who stake/stick their coins in special wallets and lock them. There is also a reward associated for stakers as an annual dividend of ether, so the more you stake, the larger the dividend.

Pow vs PoS
Proof Of Work vs Proof Of Stake Image Courtesy – Hackernoon

Why is Ethereum Upgrading to PoS?

Following problems that could be Solved with PoS, but not with PoW

  1. Bad Actors are Punished for supporting invalid blocks
  2. Individuals have more incentive to act honestly than they do in a PoW system.
  3. Difficult to conduct a 51% attack as with PoS an individual need to purchase Ethereum market cap[ that amount is tremendous, may not be possible for individuals]. Real life example when on the Bitcoin network in July 2014, a bitcoin mining pool named Ghash controlled 51% of the mining power for 12 hours.

Serenity

The last phase of the Ethereum Roadmap that will upgrade the entire network from PoW to PoS. At this phase, Ethereum with a built-in Turing-complete programming language can be used by other companies, developers,  and entities to create applications, contracts,  and systems.

Ethereum is still a nascent technology, but many promising scaling features will allow reaching the mainstream. If Ethereum can achieve its ambitious multi-year vision, then it will lay down the foundation and backbone of the blockchain ecosystem!

Our next post would talk about How Plasma and Sharding would help in Ethereum Scalability Problem. Stay tuned.

Hackernoon, Coindesk, Cryptograph

How is Schnorr Signatures helping solve Bitcoin scalability problem

 

One thing that Bitcoin fans hate about it is “Scalability.”

Bitcoin Scalability problem is a real concern that is bothering the community. The size of each block on a bitcoin network governs how much transactional data can be confined in it. And with ever-increasing bitcoin user base [As per statista reports the number of Bitcoin enthusiast are 16.95 million  as in March 2018], it is affecting the transaction processing capacity of the bitcoin network that on an average takes 10 minutes to create a new block, and  it can manage seven transactions per second [TPS] that costs around 2-10 USD+ .

If you compare this with other cryptocurrencies, they boast having a better TPS.

Cryptocurrency Transaction Speed
Cryptocurrency Transaction Speed

But as Bitcoin is most loved cryptocurrency, and has a market cap of $144,982,960,328, experts need to find a solution to Bitcoin scalability problem.

Tried and Proposed Solution to Bitcoin Scalability Problem

How could you probably solve the Scalability issue that is an inbuilt feature of Bitcoin?

Increase the Block size

Yes, the Bitcoin community in 2017 was keen to resolve Scalability issue and started working on 2MB block size increase. The project BIP 100 and BIP 101 where BIP stands for Bitcoin Improvement Proposal was initiated into two phases

  1. Segwit– Segregated Witness (SegWit) to separate signatures from transaction data, effectively allowing the network to “cheat” by creating larger blocks than 1 MB, yet still counting them as being below the cap. While Segwit received of only 30% miners, Segwit2x found its way in August 2017. As per cointelegraph – Segwit was launched to get rid of transaction malleability required moving some non-critical data, called “witness data,” out of transactions and off the Blockchain. This allows for an increase in the block sizes of up to 4MB, although most experts close to the development process say that the network is most likely to settle at about 2MB block sizes after SegWit is launched.
  2. 2MB block size increase – The phase had to be suspended because the community did not agree, maybe because it would lead to a higher transaction cost.

Even though the Blocksize increase did not happen, there are potential pros and cons of this approach

Pros of Increasing Block size to 2MB

  1. By increasing the size, the Bitcoin community is making space for new users, that could mean more adoption of Bitcoin at the global
  2. Large Blocksize results in more transactions that lead to more fees involved per block. So as the base block prize decreases, more fees would attract dedicated miners thereby making network secured

Cons of Increasing Block size to 2MB

  1. Large Blocks means slow movement of data, however, with faster internet speed, this could be kept
  2. The Unspent Transaction Outputs or UTXO, the database would increase rapidly as a result of the higher transaction cap. As per a stat of 2015, the UTXO size has doubled in the last year, and we are witnessing the UTXO growth to out space new memory chip technology. That means an issue for nodes which cannot increase their capacity and may drop off.

The Lightning Network

First proposed by Joseph Poon and Tadge, aka Thaddeus Dryja in 2015 in this white paper, it works like this. For example, two parties say A and B and transacting,

A —————————->B [ A gives B 50 $]

B—————————–> A [ B gives A 5 $]

A——————————>B[ A gives 15 $]

Then rather than broadcasting each recurring transaction, a net settlement at a later date could be published on chain network.

In Bitcoin’s case, it allows for things like micropayments that are entirely handled off-chain and then settled at some point on the chain, cutting down on the number of transactions sent while still allowing full utility and fund control. So it’s about creating a micropayment channel to enhance scalability thereby reducing on chain transactions. Sending many payments inside a given micropayment channel enables one to send large amounts of funds to another party in a decentralized manner.

Pros of The Lightning Network

  1. Due to reduced spamming, the transaction fees are diminished.
  2. As the network scales, it would help in increasing the number of transactions

Cons of The Lightning Network

  1. The blockchain is all about transparency, and as there would be off chain transaction, it questions the use of a blockchain network.
  2. As less transaction flow on a chain, the Bitcoin community that is fee-driven and finds incentive and keeps it secured via mining may find it hard to mine the blocks.

Schnorr Signature

We all know that to perform any successful transaction on a bitcoin network digital signatures are required. Now considering the above example [under lightning network A transacting with B], for three transactions, the signature needs to be included that needs some space on the block and for using that space the individual need to pay miners.

Just imagine this signature floating around a network using space and you paying for it. Seems redundant?

That’s where Schnorr Signature is handy

What is Schnorr Signature?

A new Schnorr-based multi-signature scheme, i.e., a protocol which allows a group of signers to produce a short, joint signature on a common message called MuSig.

So basically, you would still sign the transaction however with Schnorr signature scheme it would apply a series of mathematical rules that link the private key, public key and signature together, thereby freeing space and lowering fees.

According to developers working on the technology, the change would lead to an estimated 25 percent to 30 percent boost in bitcoin’s transaction capacity.

Pros of Schnorr Signature

  1. Increase in Capacity– The Schnorr signature that works on the principle of multisignature aggregation offers data advantage. With only one signature being transmitted, included in the block thereby resulting in more rooms for newer transactions. Yes Segwit also helps in segregating the signature part, but here is the comparison done by the Bitcoin Core groups

For example: 

Segregated Witness, as proposed by Bitcoin Core, offers a (roughly) 75 percent discount on all data included in the witness rather than the original block. One megabyte of witness data is, therefore “weighed” as .25 megabyte, which would leave room for .75 megabyte transaction data in the original block, for a total of 1 megabyte. 

If aggregated Schnorr signatures reduce the total size of witness data, say from 1 megabyte to .5 megabyte, this .5 megabyte would then be discounted to 0.125 megabytes, leaving room for up to 0.875 megabytes in the original block. (A capacity increase of about 17 percent.)

 The exact amount of added room depends on the types of transactions included in blocks. But rough estimates by Bitcoin Core developer Eric Lombrozo suggest that Schnorr signatures could eventually increase total capacity 40 percent or more – that’s on top of the added 60 to 100 percent already offered by Segregated Witness.

  1. Enhanced Privacy – As the basic idea of Schnorr Signature work is that it allows multiple inputs to result in one transaction, controlled by the same Now you could switch between devices or people and still make a transaction as the Schnorr Signature allows you to craft a signature same as any other one.

The Cons of Schnorr Signatures are not yet clear for the apparent reason that the scheme is, however, to be implemented and tested. But with its key features and reg the scalability of Bitcoin, it seems a more viable solution of all the proposed solution in the near future.

We would love to hear your thoughts about Schnorr Signatures. Feel free to post your feedback here.


Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.

References: Wikipedia Coinbuzz, Lightning Network, CrushtheStreet, Cointelegraph, Medium

TenX(PAY) up by 50% in 24 hours on banking license rumours – trading @ $8 in Bithumb

WhatsApp Image 2018-07-16 at 17.07.44
$8 on Bithumb
Screen Shot 2018-07-16 at 4.09.35 PM
$1 on Bittrex

 

With the TenX(PAY) token up by almost 40% in 24 hours, rumours that are spreading say that the project might be very close to getting their banking license approved(mostly in Korea) – this will enable it to launch their own card without any hassle or dependency on a non-crypto service. The PAY token is trading on Korean exchange Bithumb at ~$8 whereas on Bittrex and the other exchanges at ~$1.

Another rumour that is going around is that it might be very close to getting listed on Binance, which will definitely give it a huge boost in volume.

Although there has been no such announcement from the TenX team on its official pages, these seem like the most plausible conclusions. Having said that, it might just be another case of pump & dump where the select few will make the buck and leave the rest drooling.


Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.

Bitcoin Futures Volume Spike As Cboe Awaits ETF Decision

A well-known fact that cryptocurrency and bitcoin prices are declining since last month of 2017. At one hand the spot prices have been volatile, the bitcoin future products have seen a steady increase in trade volume and more liquidity. In fact, Cboe is keen to launch a bitcoin-based exchange-traded-fund (ETF), whose fate would be decided by the US Securities Exchange Commission on August 10. The US Securities and Exchange Commission is seeking a public opinion concerning the ETF application to help their decision on whether or not they will approve a bitcoin ETF this time around. (SEC).

Read more at bitcoin


Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.

SIX Group, considering cryptocurrency trading, go online by mid-2019

SIX Group, the parent company of the Swiss stock exchange, announced that it had been considering cryptocurrency trading on its upcoming platform, scheduled to go online by mid-2019. They are about to launch a fully-regulated form for digital assets, which will cover a wide range of services, including consulting for ICO projects.

“With the new service we will provide a safe environment for issuing and trading digital assets, and enable the tokenization of existing securities and non-bankable assets to make previously untradeable assets tradeable,”   SIX Group spokesman Stephan Meier explained in the interview with swissinfo.

Read more at fxstreet

New York Crypto Miners to get Power at Higher Rate?

As per new electricity rate scheme in New York, crypto miners need to pay more than other consumers. New York State Department of Public Service Chair John Rhodes said in a statement:

We must ensure that business customers pay a fair price for the electricity that they consume. However, given the abundance of low-cost electricity in Upstate New York, there is an opportunity to serve the needs of existing customers and to encourage economic development in the region.

On the other hand in Quebec, Canada provincial utility Hydro-Quebec proposed a new regime under which blockchain companies will be required to bid for electricity and quantify expected job creation and investment.

Read more at Cointelegraph


Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.

Look who is investing in Crypto Hedge Fund – Billionaire Steven Cohen

Cohen has reportedly made the decision to invest in Autonomous Ventures, a hedge fund focusing on cryptocurrency and blockchain technology.Autonomous Partners, led by early cryptocurrency believer and venture capitalist Arianna Simpson, launched in December and includes funding in the low eight digits from investors such as Coinbase CEO Brian Armstrong, Union Square Ventures, and Craft Ventures.

“I’ve only brought on partners that I think can be very much value-add beyond their capital,” Simpson told Fortune.

Read more at Fortune


Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.

 

FIFA Gambling – Police Seize $1.5 Million in Crypto

$1.5 million worth of cryptocurrencies were seized by Local police officials in China as part of a crackdown on gambling during the 2018 FIFA World Cup. As  Xinhua reported the unnamed gambling platform in May following advertisements that claimed it would “accept international recognized cryptocurrencies including bitcoin, ether, and litecoin” to draw in users. Over the course of eight months, some 333,000 users used the site, which reportedly saw an estimated transaction volume of at least $1.5 billion.

Read more at Coindesk


Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.

Litecoin, Bitcoin Cash Are Latest Crypto Additions to Robinhood Investing App

Robinhood, a U.S.-based mobile stock trading app, has added two new cryptocurrencies to its no-fee trading service. In an announcement made on Thursday, the business said that litecoin and bitcoin cash had been added for Robinhood Crypto users following strong demand from customers for crypto assets beyond the current options of bitcoin and ethereum. A report published in May states that the company raised $363 million in a Series D funding round that would assist firm to offer more crypto trading pairs in more markets in the U.S.

Read more at Coindesk


Nuo is a decentralised and transparent crypto banking platform. It acts as a blockchain powered financial control centre to store, spend, borrow and grow your crypto-currencies. Install the android app or try out our crypto backed loans platform.

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