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Category Archive : Crypto News

1 million wallets use Coinbase-backed Base’s smart contracts during testing

Base, a Layer 2 network in development by Coinbase, reported that more than one million wallets initiated smart contracts on its test network during the Builder Quest period.

This initiative was designed to identify potential issues in the network, which is still a testnet, under high stress conditions. With this surge in activity, the team was able to identify critical stress points in both the platform’s design and infrastructure, which it is now actively addressing. Yet it found these issues difficult to solve while keeping the whole system working as intended.

During this testing phase, the network faced a significant spike in activity and a flood of data-intensive transactions. In response, developers increased the Base block gas limit — allowing for more transactions per block and aiming to mitigate the sharp rise in base fees.

However, following this modification, the team encountered challenges in securely delivering batches of cryptographic proofs of its network blocks back to Ethereum’s Goerli testnet, which serves as the Layer 1 (L1) chain in this context. A Layer 2 network runs on top of a Layer 1 network and batches transactions to it.

The team noted, “After the implementation of this [doubling gas limit] adjustment, we faced issues due to larger L2 blocks when trying to batch blocks back to the Goerli L1.” After this, the team continued with fine tuning parameters regarding how it batches transactions. 

“We fine-tuned parameters and made adjustments, hoping to reach equilibrium,” Base said. “Despite these changes, the system struggled to reach equilibrium and publish the unsafe blocks to the L1. It wasn’t until the quests slowed down that we could close the gap — emphasizing the need for a more robust, long-term solution,” the team acknowledged.

Built on Optimism’s development software stack, known as the OP Stack, Base is designed to serve as a rollup network, similar to Optimism. It aims to execute off-chain computations on a secondary layer to facilitate faster, cheaper transactions — all while maintaining the security benefits of the Ethereum mainnet. Furthermore, this solution could potentially become the default Layer 2 network for Coinbase’s on-chain products.

Base responds with system optimizations

Base’s core team has made two optimizations in an attempt to stabilize the system after seeing a major spike in activity. First, the core team said, it enhanced the data compression, aiming to better use the “L1 transaction call data.” Second, the team modified their system to allow the submission of multiple batches of transactions for each L1 block, rather than a single batch at a time. These changes, the team stated, could address the technical issues previously observed.

“As we look towards mainnet, these changes not only pave the way for possible increases in block gas limit but also ensure that base fees remain low and accessible for users,” the team said. “They [changes] also increase the reliability of writing L2 data to the L1, crucial for maintaining speedy withdrawals and transactions.” 

The Base team previously reported its testnet has drawn interest from a range of developers and projects, including Blackbird, Thirdweb, OAK, and Parallel. Additionally, notable DeFi platforms like Uniswap and Aave are considering deploying on Base once it goes live.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Vishal Chawla

Australian bank limits payments to crypto exchanges in light of scams

The Commonwealth Bank of Australia introduced measures to limit its customers’ ability to send money to crypto exchanges due to crypto-related scams.

The bank said it would decline or hold certain payments to crypto exchanges immediately and plans to introduce a $10,000 (AUD) monthly limit that its customers can send to exchanges.

“With the incidences of scams increasing and in many cases customers suffering significant losses from being scammed, the introduction of 24-hour holds, declines and limits on outbound payments to cryptocurrency exchanges will help reduce both the number of scams and the amount of money lost by customers,” said James Roberts, general manager of group fraud management services at Commonwealth Bank.

The measures will be reviewed on an ongoing basis.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Tim Copeland

Coinbase legal chief sees a big hole in the SEC’s crypto securities claims

Episode 54 of Season 5 of The Scoop was recorded with The Block’s Frank Chaparro and Coinbase Chief Legal Officer Paul Grewal.

Listen below, and subscribe to The Scoop on AppleSpotifyGoogle PodcastsStitcher, or wherever you listen to podcasts. Please send feedback and revision requests to podcast@theblock.co.


Paul Grewal is the Chief Legal Officer of Coinbase — the crypto exchange that recently found itself in the crosshairs of the U.S. Securities and Exchange Commission.

In this episode, Grewal shares Coinbase’s perspective on the SEC’s recent enforcement actions, and gives a behind-the-scenes look at the efforts Coinbase has made over the years to comply with regulators.

 

Outline of the discussion:

1:48 – Coinbase Tried to Work with the SEC 🕊

6:23 – The SEC & Alternative Investments 🧑‍⚖️

9:06 – SEC vs. Coinbase 🧐

12:30 – SEC vs. Binance 😬

13:58 – Business as Usual 💪

17:20 – Congress & Crypto 🇺🇸

21:24 – Institutional Reaction 🐋

24:09 – Coinbase International 🌐

25:48 – Change in Administration 4️⃣7️⃣

27:31 – SEC Stubbornness or Coinbase Naivety? ⚔️

31:16 – Coinbase Wallet x Lawsuit 🤷

32:49 – The Crux of the Case 🌰


This episode is brought to you by our sponsors PayPal and CleanSpark.

About PayPal

Make your crypto move with PayPal. Get started today at PayPal.com/crypto

About CleanSpark

CleanSpark (NASDAQ: CLSK) is America’s Bitcoin Miner™. Visit cleanspark.com/theblock to learn more about the CleanSpark way.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Davis Quinton and Frank Chaparro

Social Media Targeted in EU Consumer Group Complaint About Crypto Ads

BEUC wants Instagram, YouTube, TikTok and Twitter to prohibit influencers from promoting crypto

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Author: Jack Schickler

Crypto Exchange Bittrex’s Customer-Repayment Plan Faces U.S. Government Objection

If successful, it wouldn’t be the first time the state has scuppered a crypto bankruptcy proposal.

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Author: Jack Schickler

DeFi Unfazed by SEC’s Classification of Tokens as Securities

These forces will likely only drive “more financial activity to DeFi,” one trader said.

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Author: Shaurya Malwa

UK Lawmakers Clash Over Government Plans to Regulate Crypto as Financial Services

While some lawmakers have aligned with the government’s proposal, others want the volatile assets to be treated as gambling.

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Author: Camomile Shumba

Stablecoin Regulation Is a Sticking Point Between the G-7 and G-20

Global leaders appear to have reached a consensus on setting up universal rules and standards for most aspects of the crypto sector save for the treatment of stablecoins.

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Author: Amitoj Singh, Yuki Kamimoto

Binance Redirected $12B to Firms Controlled by CEO Changpeng Zhao, SEC Says

SEC says billions in customer funds were directed to Zhao’s firm Merit Peak via a holding company called Key Vision Development Limited.

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Author: Sam Reynolds

Bitcoin whale transfers nearly $40 million after decade of dormancy

A wallet holding a large bitcoin sum transferred its 1,432.93 bitcoins — worth $37.8 million — to a new address after more than 10 years of inactivity.

The address initially received bitcoin on April 9, 2013, when the price was only $195.40 per coin, on-chain analyst Lookonchain noted.

This latest transfer follows a slew of similar movements over recent months.

On April 24, a bitcoin whale address that hadn’t been active for 12 years transferred nearly $11 million in bitcoin to another address. That movement came only days after another whale address transferred nearly $61 million in bitcoin after nine years of inactivity and a separate wallet transferred 279 bitcoins after ten years.

Also on April 24, an Ethereum address that participated in the project’s initial coin offering woke up after 7.7 years of dormancy and transferred a single ether.

This story has been updated with additional context.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Adam James


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