May 20
[May Week 3] PEN TALK
Today’s Topic
📌 Protocon, unveiled the 2nd Yellow Paper, Fact Hash
📌 Are bored apes preparing to leave Ethereum?
📌 Terra blockchain hardfork… Can it revive again?
Protocon, unveiled the 2nd Yellow Paper, Fact Hash
Protocon has released the second yellow paper, Part 2 ‘Fact Hash’, following the first yellow paper, Part 1 ‘Contract Model’.
The ‘Fact Hash’ technology that can safely connect different blockchains supports ‘Cross-chain’, a heterogeneous blockchain connection service, and at the same time boasts strong security and excellent performance of side chains and off-chains.
The data processing method of the existing blockchain has a structure in which it is difficult for a third party to check whether the data is actually processed on the blockchain. Because of this, when connecting heterogeneous blockchains, it is difficult to verify whether the data is actually processed in another blockchain or whether the transaction is real data.
In February, Solana’s Ethereum bridge ‘wormhole’ was hacked and 120,000 ether (ETH) valued at $324 million was stolen, and in March, $600 million worth of ETH and USDC were stolen from the ‘Ronin bridge’ of the P2E game ‘Axie Infinity’ to target this vulnerability.
Fact Hash is a new data structure that effectively compensates for these vulnerabilities. The Protocon mainnet, along with the Transaction ID, is stored in the blockchain by creating a hash value called Fact Hash separately with only published data (fact) that excludes the signature value.
For example, when sending tokens, only public data such as sender, receiver, transmission quantity, and transmission time are bundled to create a hash value, or in other words, a fact hash, and store it in the blockchain. In this way, if you know only the transaction details, you can easily create a fact hash from the outside, and verify that the transaction is a normal transaction just by checking that the same value as the fact hash is stored in the blockchain.
In particular, this feature of fact hash is expected to dramatically increase the reliability of side chains and off-chains as well as when linking heterogeneous blockchains.
Are Bored Apes preparing to leave Ethereum?
Yuga Labs, the developer of Bored Apes Yacht Club (BAYC), is preparing to leave Ethereum. Currently, Avalanche and Flow are working to attract popular NFT projects, BAYC.
It is known that the reason Yuga Labs is considering a mainnet migration is due to the high volatility of fees in Ethereum. As you know, Ethereum maintains a fee policy in which transactions with high fees are processed first when the transaction volume increases.
Yuga Labs developed the BAYC-themed metaverse game ‘Otherside’ and started pre-sales of ‘Otherdeed’ in-game virtual land on April 30 (local time). 55,000 Otherdeeds were sold, and purchases were made possible through the BAYC project’s cryptocurrency, APE. It is known that a whopping $285 million was poured into the pre-sale. That’s amazing…
However, the sales process did not go smoothly. This is because Ethereum transaction fees(gas prices) soared due to the huge demand. The average gas cost rose from 52 Gwei the day before the pre-sale to 474 Gwei the day after the pre-sale, more than nine times higher. As a result, a total of 176 million dollars of gas was incurred, and the Ethereum network was also stopped for a moment.
Due to this incident, Yuga Labs posted on the official Twitter on the 1st, “It seems abundantly clear that ApeCoin will need to migrate to its own chain in order to properly scale. We’d like to encourage the DAO to start thinking in this”
Terra blockchain hardfork… Can it revive again?
Terraform Labs CEO Do Kwon announced a proposal to create a new Terra chain and issue a new LUNA through a hard fork, and voting within the Terra community started on the 18th. A new LUNA is expected to be issued on the 27th if the votes meet a quorum and there is a large majority in favor.
In the new Terra chain, the existing algorithmic stablecoin, UST, will be eliminated, and the LUNA of the existing chain will be renamed LUNC (Luna Classic).
Governance voting is currently underway at Terra Station, with 77% in favor(as of May 19, 2022). However, the turnout is not high yet, and the validators with large voting power have not yet participated, so attention is focused on how the result will be. I wonder what the new Terra and Luna will look like, and whether they will be able to succeed in their revival after being recognized for their value.
Meanwhile, the community and crypto celebrities are generally negative about it. Most of the opinions are that the compensation plan for Luna holders who have suffered damage from this situation is inadequate. Ethereum Foundation leader, Vitalik Buterin, has said that we must first bail out small investors who have been hurt by the UST and Luna crashes. Also unusually, Binance founder Changpeng Zhao also criticized Terra. CEO Changpeng Zhao said, “We asked Terra to burn Luna and restore the value of UST, but we did not receive any response.”
