Cryptocurrency News: Why Bitcoin, Ethereum, Ripple Are Plunging Today
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Each week we select the 3 news items that matter and explain why and link to one expert opinion. For the intro to this weekly series, please go here. Despite these revolutionary possibilities Ethereum brought us, there is still so much more of work needed on the development side. Ethereum has scaling issues, because it can only handle transactions per second, with transaction speeds averaging 6 minutes.
To tackle these issues, the Ethereum Foundation are trying to scale their network in order to handle more transactions per second. Ethereum coin news louis the reality is that these solutions are still far from being deployed. This week, however, Loom Network deployed their own scaling solution for DApps to production, along with a test site—DelegateCall. Loom Network, a Bangkok-based blockchain startup, released a new platform that allows developers to build large-scale decentralized apps DApps or games directly on the Ethereum blockchain, with the scale to avoid network congestion.
Loom Network aims to become a different breed of blockchain platform, as it ethereum coin news louis focuses on large-scale online games and applications. Each DApp gets its own chain, allowing the DApp to scale while still being tied to the security of the Ethereum mining network.
Loom Network will help build games which cannot be built without the blockchain. With scarce items, traceable tokens, and multi-game-spanning universes, there are a lot of opportunities waiting to be explored. Additionally, the project also wants to build new types of social applications, not necessarily advertising based. If large scale systems, that require hundreds of thousands of transactions per second, are ever going to be built on blockchain, the technology needs to overcome several obstacles.
While at ethereum coin news louis moment, Ethereum coin news louis is decentralized and secure, it is not scalable. In the future, Loom Network aims to support hundreds or thousands of different DApps, each running their own sidechains.
It will be interesting to see how it develops, but building Twitter-scale apps on top of Ethereum will not be an easy task. Another scaling story, this time about Bitcoin. Lightning Network is considered to be one of the most important solutions for the scalability of the Bitcoin network. The release from Lightning Labs comes after more than a year of extensive testing from thousands of developers and other volunteers all over the world.
There are also other implementations of the Lightning Network still in development. However, LND is the first one to see a beta release.
A beta version of Lightning Network went ethereum coin news louis on the Bitcoin Mainnet on March 15th ethereum coin news louis significant restrictions. As reported by Coindesk:. Lightning Network aims to make Bitcoin transactions cheaper and faster. The beta release is compatible with various Bitcoin implementations. It already has more than 1, nodes connected in the testnet and people have already been making real transactions. Lightning Labs, the company behind the original development, is moving to the production environment, meaning, you will have the option to use off-chain payment channels to do transactions.
Now you can setup a lighting node, which will re-route payments to other nodes, and get paid to do that. You can start using it as a consumer to send money to another person, or pay a business. We can expect the transaction fees to decrease exponentially, as miners will only register and validate final balances from the off-chain channels onto the blockchain. When you consider fast, nearly zero-cost transactions, we could see things like micro-payments, push Bitcoin into mainstream and extending it far beyond its current status, as a store of value.
The first quarter of has been marked by rampant volatility. It also took a hit this week, after Google revealed stricter advertising policies which will impact cryptocurrencies and initial coin offerings ICOs. Japan asked its G20 counterparts for help in the fight against digital currency-utilized money laundering. France and Germany are set to put forth joint proposals calling for strict regulation of the cryptocurrency market. Many countries ethereum coin news louis rather not risk stifling innovation, by imposing restrictions, like other short-sighted governments have done, for example China.
Inblockchain and cryptocurrencies became too big to ignore. Inthey will become too big to fail. As the market grows further, regulatory scrutiny is expected and regulators will be more assertive. Retail and institutional investors are ready for a regulated and liquid marketplace for digital currencies and assets. The certainty that regulations bring is very important, more than people think or realize.
Appropriate regulation should ultimately help promote best practices and provide protection to consumers. While regulatory news out of US, Japan and other countries have impacted cryptocurrencies, the reality is that it should not have caused any alarm or ethereum coin news louis, especially when you at the big picture. The future is bright! Cryptocurrencies are still in the early stages of development.
We can expect prices to surge, as ethereum coin news louis scale transaction levels and some other developments come out of the woodwork. Bitcoin is positioned for a dramatic rise in adoption in The Lightning Network scaling solution is right around ethereum coin news louis corner. Institutional investors are getting into the race.
Goldman Sachs-backed mobile Bank Circle recently acquired Poloniexin a power ethereum coin news louis that brings traditional financial giants directly into the crypto space. The Blockchain Research Instituteis investigating the ways blockchain will transform ten major industries: Ethereum coin news louis all these industries we already see striking innovations piloted by massive organizations.
Meanwhile, many of the best new startups are architected on decentralized models. InICOs raised ethereum coin news louis for utility tokens.
Most token purchases were driven by short-term speculative gain. But the promise of ICOs is not to enable speculation, but to enable the funding of innovation. Inwe can expect security tokens to explode. These will be digital assets that represent stocks, bonds and futures contracts. New and existing companies will taking a better look how they can build communities with their ICOs, not just speculators trying to make a quick buck.
Tesla could issue a security token to represent ownership in a product, ethereum coin news louis the company, or for example to entice individuals to reduce their carbon footprint. Cryptocurrencies are a long term play, not for the faint-hearted. Get fresh daily insights from an amazing team of Fintech thought leaders around the world. Ride the Fintech wave by reading us daily in your email. You are commenting using ethereum coin news louis WordPress.
You are commenting using your Twitter account. You are commenting using your Facebook account. Notify me of new comments via email. March 19, March 19, Ilias Louis Hatzis. As reported by Coindesk: Leave a Reply Cancel reply Enter your comment here Fill in your details below or click an icon to log in: Email required Address never made public.
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