Tim Beiko, an Ethereum core developer, has given a set of recommendations and expectations for Ethereum application and protocol developers ahead of the impending merge.
Beiko advised ordinary app and protocol users to test things out to verify that nothing breaks when additional tests are run. “Run stuff, if something is unclear or broken, leave a comment,” he tweeted on Tuesday. He also urged users and developers to “pay attention and make sure you are ready” for the Merge.
The Merge is the very complex and long-awaited conversion from proof-of-work (PoW) to proof-of-stake (PoS) consensus on the Ethereum network. It will be known as the Consensus Layer at that time, and it is slated to happen around August of this year.
On numerous testnets, the focus has been on ensuring that there are no cross-client concerns and that current apps do not fail completely after the Merge. In a separate Twitter thread, Beiko noted that such issues are unlikely to arise because “99% of modifications affect the protocol layer,” while “virtually no changes are done to the application layer.”
He also stated that developers should be aware that there will be two major changes to how smart contracts function with the Merge. To begin, he reminded them that the approach for beacon randomization, which aids in the running of programs, will be altered. This was announced in an Ethereum Foundation (EF) update in November and would be required for the migration to PoS.
The second modification will be a reduction in block timings from 13 to 12 seconds per block. Smart contracts that utilize block production speed as a measure of time will run one second faster after the Merge as a result of this change.
However, Beiko exuded confidence that, despite the Merge’s delays, all potential difficulties had been condensed into a single echelon. “Aside from cross-client testing and these two edge cases, the biggest risk of disruption is in ‘tooling and infra pipelines.’”
He concluded by stating that if any further vulnerabilities occur during the extensive testing and shadow forks, the Merge would be postponed further to guarantee the network’s security: “At any point, if we find issues, we’ll obviously take the time to fix + address them before moving forward. Only then will we think about moving mainnet to proof of stake.”
On Monday, DeceDeFi instructor Korpi revealed on Twitter that Ether (ETH) staked on the Beacon Chain can no longer be unlocked without a network update after the Merge. This includes staking-related prizes assuring ETH investors who are concerned that their coins will be released and dumped to relax
He also indicated that once coins are unlocked, they would be delivered in stages rather than all at once, and that those coins are typically an investor’s “never-sell stack” that will not be sold.
On the Beacon Chain, there are presently 12.6 million ETH staked. The Beacon Chain, which began in December 2020, was one of the initial moves toward turning Ethereum a PoS network.
RxR Analysis Reveals: Ether’s True Worth 27% Higher than Market Price
RxR, a research-driven partnership between Republic Crypto and Re7 Capital, has revealed that Ether (ETH), the native token of the Ethereum blockchain, is currently trading at a 27% discount to its actual fair value.
This revelation comes as a result of RxR’s innovative approach to evaluating the worth of cryptocurrencies. Instead of relying solely on traditional metrics, RxR’s methodology incorporates a blended version of the Metcalfe law that takes into account both the active user base on the continuously expanding Ethereum scaling networks and the users on the Ethereum mainnet.
Ether, as a fundamental component of the Ethereum ecosystem, facilitates a wide range of activities, from simple transactions to participating in network security through staking, earning interest, and even storing non-fungible tokens. As such, the value of Ether has long been intertwined with Ethereum’s network usage.
Lewis Harland, an analyst at RxR, explained the significance of this approach, stating, “Ethereum’s network valuation exhibits a closer alignment with the updated Metcalfe law index when the active user base of Ethereum’s scaling networks is included in the model, in contrast to when it is omitted.”
Harland continued, “The updated model, which factors in these networks, places ETH’s valuation at $275 billion, indicating that the current market capitalization is trading at a substantial 27% discount.”
Ether’s market capitalization consistently tracks the blended Metcalfe law model more accurately than the traditional model, which fails to consider the growing activity on layer 2 networks or offchain solutions built atop the Ethereum mainnet.
In essence, this analysis challenges the perception that Ether might be overvalued, as suggested by the traditional Metcalfe law Model.
The emergence of Layer 2 technology has undoubtedly become one of the most dynamic and exciting developments in the crypto market. Key protocols, such as Coinbase’s BASE, Arbitrum, and Optimism, have found their unique niches within this landscape.
According to data from L2Beat, the total value locked in layer 2 protocols has surged more than threefold in just two years, reaching an impressive milestone of over $9 billion.
Nearly 90% of Ethereum Supply Now Held Off Crypto Exchanges
Data shows that nearly 90 percent of Ethereum supply has left cryptocurrency exchanges for cold wallets or staking polls. This is the largest since 2015.
It is worth noting that consumers have started moving their Ethereum holdings en masse to self-custody addresses since September last year. A process that was intensified in November during the FTX meltdown, which undermined the trust in centralised platforms.
A similar scenario also played out with Binance on Tuesday when more than 3000 BTC was withdrawn within 24 hours from the platform following a threat from the U.S. Commodity Futures Trading Commission (CFTC) to sue the exchange for allegedly violating trading regulations.
Investors often tend to move their digital assets from centralised exchanges to cold wallets at the slightest controversy.
According to on-chain analytics provider Santiment, the total supply of ETH held on exchanges is currently at its lowest level since July 2015, with only 10.31% of existing ETH available. The remaining almost 90% of Ethereum is being held by wallets controlled by users.
A low proportion of ETH on exchanges means that if significant buying pressure were to be seen on the market, the cryptocurrency’s price would likely go up, as there is little supply readily available to satisfy demand.
Investors King understands that other factors responsible for this trend include the transition of Ethereum network from a Proof-of-Work (PoW) consensus algorithm into a Proof-of-Stake (PoS) consensus algorithm.
In addition, Ethereum staking has been seen as a source of revenue for both cryptocurrency holders and exchanges. These platforms offer users a staking service allowing them to maintain liquidity by locking their ETH on-chain to earn rewards.
Another tenable reason is that investors are starting to see Ethereum as a potential long-term investment vehicle, much like Bitcoin. This is evident in the growing number of holders, who are holding onto their Ethereum for the long term, as opposed to trading it on cryptocurrency exchanges.
How To Trade Ethereum In Nigeria
The first ever cryptocurrency was launched in 2009, and fourteen years later, crypto has experienced massive growth and adoption worldwide.
From being accepted as legal tender in countries like El Salvador to being accepted as a payment method by businesses worldwide, digital currencies have proved they are here to stay and thrive. We have witnessed the boom of crypto globally, and Nigeria has not been left off the group chat.
Despite the limitations of the Central Bank of Nigeria, Nigerians have been at the front line of cryptocurrency adoption in Africa, with millions of users. We all know Nigeria does not have the most stable economy, but we Nigerians have looked to crypto to give us leverage. It has helped us in many ways, from protection from inflation, currency devaluation and much more. With crypto, we can transact with anyone, anywhere in the world, without the need for middlemen, and it’s great for startups and small businesses in need of funding. All in all, crypto has been a game-changer for Nigerians, and it will only get bigger!
Are you ready to hop on the crypto wave and start making money from it? It is never too late. That’s why I am here to share with you all you need to know on how to trade Ethereum in Nigeria. Keep reading to discover the benefits of trading Ethereum and exactly how to trade the popular crypto coin in Nigeria and get the most out of your investment.
Overview of Ethereum
In 2015, Ethereum was released to the market by Vitalik Buterin, a young Russian programmer who saw the potential for blockchain technology beyond only crypto.
With Ethereum, developers can create decentralised applications (dApps) and smart contracts. Ethereum has its own crypto, Ether (ETH), used to pay for transactions and encourage developers to build on the platform.
A brief history of Ethereum
Although Ethereum was launched in 2015, the idea started in 2013 when Buterin wrote a whitepaper describing the concept of a blockchain platform that could be used beyond financial transactions.
But it did not stop there. In 2014, the project became quite popular as Buterin started a crowdfunding campaign to raise funds for Ethereum’s development.
The campaign was a huge success and even raised over $18 million worth of Bitcoin in only 42 days. Amazing, indeed.
Currently, Ethereum is one of the most popular blockchain platforms. It gave rise to thousands of decentralised applications, ranging from financial applications like decentralised exchanges (DEXs), stablecoins, to non-financial applications such as supply chain management and even voting systems.
Benefits of Trading Ethereum in Nigeria
1. Potential to Make Quick Profits:
You cannot deny that the whole point of making investments is to make a profit, which makes Ethereum a good choice. Like other crypto coins, the price of Ethereum is volatile, which means that its price can fluctuate rapidly over short periods. This makes it possible for traders to buy when the price is low and sell ETH for quick profit when it is high.
2. Ability To Access a Global Market:
Traditional financial markets are geographically limited, but the cryptocurrency market is global. This means that traders in Nigeria can buy Ethereum in Nigeria and also sell with anyone in the world, giving you access to a much larger market. Is Naira crashing again? Don’t worry; Ethereum has your back.
3. Allows Traders To Bypass Traditional Financial Institutions:
Traditional financial institutions are either inaccessible or unreliable in many parts of the world. The same is the case in Nigeria, from screaming at ATMs today to fighting for your money in the bank tomorrow. It’s a never-ending struggle.
Crypto provides an alternative to these institutions, allowing you to transact directly with each other without the need for intermediaries.
How To Sell Ethereum For Cash in Nigeria
If you’re looking to sell your Ethereum in Nigeria, several options are available. One popular option is to use a crypto trading mobile app, Breet. Breet is a Nigerian-based OTC crypto trading app that allows you to convert Ethereum to naira, convert it to fiat currency and withdraw straight to your local bank account free of charge. Let me walk you through the steps of using Breet to sell Ethereum for Naira.
Step 1: Download and Install Breet
To use Breet, you must first download and install the app on your mobile device. The mobile app is available for Android and iOS devices, and you can download it from the respective app stores.
Step 2: Register and Verify Your Account
Once you’ve installed the app, you must create an account with Breet. To register, you’ll need to provide your name, email address, phone number, and password. You’ll also need to complete the app’s KYC (Know Your Customer) process by submitting a government-issued ID and a selfie.
Step 3: Generate an Ethereum Wallet Address
Once your account is verified, you need to generate an Ethereum wallet address to receive crypto. To do this, click on ETHEREUM from the app’s dashboard. This will then open up the Ethereum trade page. Click on ‘Generate Wallet Address’. You’ll then be provided with a unique Ethereum address that you can use to transfer your Ethereum from your external wallet.
Step 4: Send Ethereum To Your Wallet Address:
The Ethereum wallet address acts just like a bank account number. All you need to do is send your address to the sender or your external wallet through the multiple options available.
Step 5: Sell Ethereum for Cash
Send the amount of Ethereum you want to sell and select “Naira” as the currency you wish to receive. Breet will automatically calculate the amount of Naira you will receive based on the current market rate.
Once your Ethereum is sent into your Breet Ethereum wallet, you need to wait for at least three confirmations from the blockchain network. Once confirmation is complete, your transaction is tagged as successful, and your funds will reflect in your Breet Naira wallet.
Step 6: Withdraw Your Naira to Your Bank Account
After selling your Ethereum for Naira, you can withdraw your funds directly to your Naira bank account. Breet offers free and instant withdrawals to any Nigerian bank account. To withdraw your funds, select the “Withdraw” option, enter the amount you want to withdraw, and select your bank account from the list of available options. Click on “Withdraw” to complete the transaction.
If your automatic settlement feature is turned on from settings, your funds are automatically withdrawn to your provided local bank account after completing the transaction.
Trading Ethereum is profitable, but it is not without risks. Using a crypto trading app like Breet can be a convenient and hassle-free way to sell your Ethereum for cash in Nigeria. With Breet, you can convert your Ethereum to Naira and withdraw your funds straight to your Naira bank account within minutes and free of charge.
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