A new research has gone viral in the latest digital currency news, coming from the creator of MKR.tools Mike McDonald and his celebratory alarm on Twitter, where he said that according to the Ethereum blockchain – about 1 million Ether (which is 1% of the total supply) is currently locked in MakerDAO smart contracts.
As he revealed on Twitter:
— Mike McDonald (@mikeraymcdonald) November 13, 2018
For those of you who don’t know, MakerDAO is a project behind Dai, which is a second-generation stablecoin that offers issuance of US dollars on the Ethereum blockchain. Even though its mechanics are quite complex, Maker offers a helpful “for dummies” explanation that does not require one to be an expert crypto analyst in order to understand what’s it all about.
The author Gregory DiPrisco has briefly explained the difference between Dai and for instance, a traditional stablecoin like Tether, stating:
“You’re most likely familiar with stablecoins that hold USD in bank accounts and issue tokens on a blockchain that are ‘backed’ by these dollars. I call this legally-backed crypto, or an IOU coin, because if those bank accounts should ever be frozen or if the accountants defrauded token holders, the stablecoin now becomes an IOU on whatever’s left when they eventually get the bank accounts back (if they ever regain the bank accounts). Relying on the legal system to maintain crypto-tokens inserts an unreliable middle-man into the blockchain.”
What’s interesting is the following…
Even though the blockchain shows around 1 million in ETH locked up in Maker smart contracts, Dai’s token market capitalization is about a third of the figure, currently sitting at $72 million.
The way this system functions is simple – users pool Ether together (referred to as PETH) and are issued Dai tokens which are deposited and stabilized at $1. One term that is widely used in these discussions is “WETH” which is short for “wrapped Ether” and a concept of the MakerDAO.
At the time of writing, there is a total of 967,507.91 ETH locked in the primary Maker contract.
New Privacy Mechanism For ETH Smart Contracts Developed By Stanford Researchers
“We describe an extension to Zether that can also hide the sender and receiver involved in a transaction among a group of users chosen by the sender. Though the overhead associated with anonymity scales linearly with the size of the group, no trusted set-up is needed and no changes to the underlying smart contract platform are required.”The report specifies that the Zether contract will never transfer funds without checking a transfer proof in order to prevent illegal transfers. This new design makes sure that the security of Zether depends on itself and not on third-parties or outside smart contracts. All of the privacy coins that provide users with a higher level of anonymity are still receiving mixed feelings from the community. For example, Charlie Lee declared he is focused on making Litecoin more fungible and private and to implement confidential transactions sometime in 2019.
Parity Manager Quits All Ethereum Projects After Controversial Tweet
“Polkadot delivers what Serenity ought to be...”Polkadot is a protocol created by Parity that aims to link different blockchains. Schoedon said that he will not work on ETH-projects anymore but will remain with Parity:
“Polkadot is not a direct competitor to Ethereum and chains like Ethereum were always an integral part of the Polkadot vision. The focus of my tweet wasn’t Polkadot or competition, but Serenity, which is, in my eyes, rolled out too slowly, and I fear that it [won’t] matter anymore once we get there. People didn’t get that, and only I am to blame for not getting the message straight.”He also said that he believes that the Ethereum community has to find some shared goals and values. After he published his tweet, users accused him of betrayal and of sabotaging Ethereum. However, he clarified:
"I did not quit social media, I quit Ethereum. I did not go dark, I just left the community. I am no longer coordinating hard forks, building testnets, or contributing otherwise. I did not work on Polkadot, I never did, I worked on Ethereum. I did not hate Ethereum, I loved it."Despite his addressing, some people such as blockchain entrepreneur Andreas Kristof said that Schoedon was the only one, directly responsible for the delay of Serenity.
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