Welcome to the latest issue of the decentralized financial newsletter Cointelegraph.
Despite the market publishing bearish data for the second week in a row, the industry does not lack positive fundamental news. Read on for the most influential DeFi stories from the last seven days.
What you are going to read is a shorter and more concise version of the newsletter. For a comprehensive overview of DeFi developments over the past week, subscribe below.
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Vitalik is optimistic about the multi-threaded, non-cross-threaded Web3 world.
Ethereum co-founder Vitalik Buterin shared an honest assessment of safety constraints by implementing fully functional bridges between chains in the blockchain industry.
Buterin argued that keeping assets on its parent chain provides a 51% higher level of protection against attack than cross-chain, noting that “it is always safer to store Ethereum assets in Ethereum or Solana sources in Solana than to store your own Ethereum assets. “Assets of Solana or Solana’s original assets of Ethereum.”
By giving a number of examples to support his statement, Buterin noted that if an attacker tries to launch a 51% attack on Ethereum, the transaction to an innocent party can be censored and / or rolled back, but not blocked or lost.
In extreme cases, user resources will remain secure even if 99% of the protocol is compromised because nodes will overwhelmingly maintain the remaining 1% of the blocks to follow the rules and thus drive decision making.
On the contrary, an incident of this type, which affects, for example, the bridge between Ethereum and Solana, will lead to irreversible losses, Buterin argues. Adding rows exacerbates the problem.
Let’s say a 51% attack occurs on one of the 50 threads. In this case, each of them becomes vulnerable to what he describes as “a systemic infection that threatens the economy of this entire ecosystem.”
dYdX aims to achieve full decentralization by the end of 2022.
dYdX Tier 2 Derivatives Protocol released version 4 of the roadmap this week, outlining plans to turn the platform into a fully decentralized, community-driven open source process later this year.
The architecture operates on a dual model where parts of the protocol such as staking and control are decentralized, while core functions such as order book outside the chain and matching engine are controlled by an internally affiliated company, dYdX Trading Inc, and maintained by central servers such as Amazon Web. services.
Since the version 4 update, the company’s representatives have stated that “there will be no key checkpoints or protocol errors”, emphasizing that “all controlled aspects of the protocol will be fully controlled by the community”.
Amazon Web Service (AWS)’s technical outages last month highlighted the real vulnerabilities of a number of cryptocurrencies, including dYdX, Binance.US and Coinbase, and their inherent reliance on key servers to maintain the network.
At the time, dYdX shared an honest update on their official Twitter account and promised to find a final solution to the issue, saying:
“Unfortunately, some parts of the exchange are still dependent on centralized services (in this case AWS). We are deeply committed to full decentralization, and this is still one of our top priorities as we continue to work on the protocol.”
In addition to pushing for decentralization, dYdX is also looking to improve its trading platform by offering spot, margin and synthetic trading opportunities, as well as hiring an external auditor to evaluate trading operations.
Near Protocol raises $ 150 million to accelerate Web3 adoption
Blockchain Proof of Stake Near Protocol raised $ 150 million in seed investments to raise awareness and implement Web3 applications on its network, focusing on expanding its audience and community base in the regions of Latin America, Turkey and India.
The capital increase was led by the well-known hedge fund Three Arrows Capital and also included Mechanism Capital, Dragonfly Capital and Andreessen Horowitz Fund in Silicon Valley a16z. Individual investors include British billionaire hedge fund manager Alan Howard and Aave founder Stani Kulechov.
In a blog post on Medium, Marek Flaman, CEO of Near Foundation, shared his optimism about the recent financing that generated the company’s previous total of $ 65.9 million: