Ethereum Protocol Engineering Update – PegaSys April 2020
Hope you’re staying healthy and safe out there. We’re excited to connect with many of you next week at the first-ever Virtual NY Blockchain Week, so make sure you secure your spot below. April was another busy month of protocol development for the team, despite our tumultuous global moment. Hyperledger Besu continues to serve as an easy onramp for organizations seeking to adopt Ethereum, enterprises are becoming increasingly interested in mainnet, and Eth2 development has been making great progress. We think this will be a summer full of milestones for our team and for the ecosystem at large. Here’s the latest.
Hyperledger Besu 1.4.4 is now available. We’ve implemented priv_getLogs, private contract log filters, EIP-2315, Splunk logging, and optional native library encryption.
- Read the docs: https://besu.hyperledger.org/en/latest/Reference/API-Methods/#priv_getlogs
The Hyperledger Besu team conducted their second security audit of the codebase in Q1 this year to ensure it meets security best practices. No critical or high issues were found. Read the full summary of the security task force’s findings.
Also, couple gems from the Besu community this past month:
- Hyperledger Besu syncing with Ethereum: a cool Grafana visualization from @EthereumOnARM.
- How to Create a Private POA Ethereum Network with Hyperledger Besu: a video tutorial from EatTheBlocks so you can see Besu in action.
Interested in additional features and support services? Contact us about PegaSys Plus.
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Want to join our partner program? Reach out to us at [email protected]. We’re here to help you easily integrate Hyperledger Besu and PegaSys products into your stack.
- Check out ConsenSys’ new Ethereum 2.0 Knowledge Base, a complete library of FAQs and resources to answer all your questions about Eth2.
- Ben Edgington from PegaSys’ R&D team published his latest What’s New in Eth2 update, with testnet news and a curated list of helpful explainers about Casper FFG, staking, and more.
- A snapshot of PegaSys’ Eth2 client fully synced with the Lighthouse testnet.
- In this presentation on Ethereum 2.0 Cross-Shard Techniques, Raghavendra Ramesh and Peter Robinson review asynchronous and synchronous cross-shard value transfer and function call mechanisms.
This year, NY Blockchain Week programming will be entirely online and free for all registrants, with globally accessible content. Make sure you reserve your free spot today. The following sessions will be led by PegaSys team members:
- Bringing Ethereum 2.0 to Phase 0 in 2020: Ben Edgington (May 8th, 9:15 AM ET)
- The Transition from Eth1 to Eth2: Tim Beiko (May 8th, 11:15 AM ET)
- Fireside Chat, Microsoft and PegaSys: Dan Heyman, Yorke Rhodes (May 8th, 12:00 PM ET)
Central Bank Digital Currency (CBDC) has emerged as one of the most compelling blockchain use cases for financial institutions. In this free webinar, enterprise experts from ConsenSys Solutions will walk through the fundamentals of CBDC and the benefits, risks, and design considerations for successful implementation. Register here.
- What Blockchain Means for Asset Management: Blockchain technology has made the management of tangible, intangible, and complex assets much more efficient. Here’s what the innovation means for asset managers, banks, investors, and others in the industry.
- How Blockchain Is Advancing Capital Markets: The way capital markets approach the exchange of value has fundamentally changed in the era of blockchain.
- Introduction to Decentralized Finance (DeFi): Use cases, products, webinars, and more to help you participate in the most exciting financial shift of our time.
- The Benefits of Blockchain for Global Trade and Commerce: Major trading companies around the world are using Ethereum to streamline the operation of global supply chains, manage trade finance, and unlock new business models.
- Transforming Payments and Money With Blockchain: From remittances to microloans to stablecoins, blockchain has ushered in a more efficient and secure global payment infrastructure.
- Hyperledger Besu Training Essentials: Get to know the functionality and features of the open source, Java-based Ethereum client in this free course from ConsenSys Academy.
- Hyperledger Besu Essentials Certification: Learn how to run Hyperledger Besu, as well as best practices for the client’s consensus algorithms, permissioning, and privacy features so you can become a certified Besu developer.
Author: by, Grace Hartley|
May 1, 2020
Ethereum Remains Trapped Beneath Key Level as Traders Flee Market
- Ethereum has seen some tempered overnight gains in tandem with Bitcoin and many other cryptocurrencies
- It still remains trapped beneath a key resistance level, however, and analysts are cautious about being too bullish on ETH until this level is firmly surmounted
- This comes as the crypto’s open interest dives, signaling that traders are fleeing the market as its price movements become driven by retail investors and spot traders
Ethereum has seen some relatively boring price action over the past 12-hours, largely hovering around $210 as it consolidates following its recent volatility.
The price action seen by ETH over the past couple of days has been significantly less bullish than that seen by Bitcoin and many of its other peers, as it posted a massive retrace from its multi-day highs that worked to degrade its market structure.
It now appears that the crypto could be trapped beneath a key technical level, and it could continue struggling to match the momentum seen by BTC if it doesn’t firmly surmount this level.
At the time of writing, Ethereum is trading up under 1% at its current price of $213. This marks a slight climb from multi-day lows of $198, but a notable retrace from highs of over $230 that were set at the peak of its recent rally.
The rejection at these highs led ETH to severely underperform Bitcoin – which is currently trading down just slightly from its multi-day highs of $9,500.
While looking towards Ethereum’s BTC trading pair, it appears that it remains trapped beneath a key resistance level at 0.025 BTC – slightly above its current price of 0.024 BTC.
One popular pseudonymous trader on Twitter spoke about the importance of this level in a recent tweet, explaining that it could determine the crypto’s mid-term market structure.
“ETHBTC: Short term bearish. Mid term – wanting to see price maintain higher low structure to continue bullish bias. Blue arrow short entries,” he noted while pointing to the chart seen below.
An interesting trend to be aware of in the near-term is that Ethereum’s price action now appears to be firmly guided by retail investors and spot traders.
This is elucidated while looking towards the crypto’s open interest, which has dived from three-day highs of $112 million to lows of $61 million, indicating that margin traders are moving to the sidelines.
The implied volatility seen between ETH and BTC has also been declining in recent times, signaling that traders are no longer anticipating the two cryptocurrencies to have a strong price correlation.
“Implied volatility of ether relative to bitcoin has also reverted to the same level following a macro period where market participants expected assets to increasingly have identical daily performances,” analytics firm Skew recently noted.
This trend may be driven by Ethereum’s underperformance of BTC throughout the past couple of days.
Featured image from Unplash.
First Mover: Tezos Led Crypto Market With Twice Bitcoin’s Gains in April
Bitcoin? Ether? Ripple? Meh. During a month where cryptocurrencies zoomed, the lesser-known Tezos beat them all.
Tezos (XTZ), one of the largest and most prominent among a fast-growing roster of digital coins known as “staking tokens,” jumped 83% in April, the most among cryptocurrencies with a market value of at least $1 billion, based on data from Messari.
That’s more than double the 37% gain for bitcoin (BTC), the largest cryptocurrency by market value, which benefited from speculation that an inflation hedge will come in handy as the Federal Reserve and other central banks inject trillions of dollars of emergency liquidity into the global financial system.
Ether (ETH) rose 62% alongside a surge in growth for U.S. dollar-linked stablecoins built atop the Ethereum blockchain, and as investor interest grew in the white-hot arena of decentralized finance. Ripple’s XRP, a payments token, rose 30%.
Staking tokens give holders the right to weigh in on a blockchain’s governance — similar to the way shareholders vote for a company’s board of directors — while also giving them the ability to earn a share of newly minted tokens, in the manner of a dividend or bond coupon.
The strong performance of Tezos is “likely in part due to increased investor interest in staking-based returns,” said Joseph Todaro, managing partner at Blocktown Capital, an investment firm specializing in digital currencies.
Some cryptocurrency exchanges offer staking as a service to make it easier for investors to participate, and Tezos has benefited recently from new listings on the exchanges Bitfinex and Binance. It’s been on Coinbase, another exchange, since last year.
Ethereum, whose native token ether is the second-biggest cryptocurrency after bitcoin, plans to upgrade to a staking model in July. Some analysts say ether has generated additional enthusiasm among speculators due to the transition to staking.
Tezos has doubled on a year-to-date basis, despite a bout of volatility along with bitcoin, ether and other tokens earlier this year.
One caveat for traders is that Tezos has a market value of just $2.1 billion, less than 1/70th of bitcoin. So Tezos has the potential for big losses alongside any fast gains, even when compared with the notoriously volatile bitcoin; in March, Tezos tumbled 41% as bitcoin slid 24%.
“The price movement of any given crypto asset is partially dependent on current investing narratives,” said Todaro.
Tweet of the day
BTC: Price: $8,995 (BPI) | 24-Hr High: $8,9958 | 24-Hr Low: $8,415
Trend: Bitcoin is on the rise, having bounced up from its key average support early Friday.
The original cryptocurrency is trading near $8,995 at press time (updated), representing over 4% gains. Prices defended an ascending 50-hour average support during Asian trading hours.
The average has consistently restricted downside and reversed pullbacks in the recent rally that pushed bitcoin from $6,800 to $9,400. As a result, the immediate bias will remain bullish as long as prices are trading above the 50-hour average, which is currently at $8,751.
If the latest bounce from the average support ends up clearing the immediate resistance at $8,913, bitcoin will likely revisit $9,200.
While the hourly chart is reporting bullish conditions, the daily chart studies also show buyer exhaustion. It’s possible there could be a break below the 50-hour average support, which would take bitcoin down to $8,500.
Author: Daniel Cawrey