Top Blockchain News for Sep 23, 2023

September 23, 2023

Welcome to Morning Blockchain, where we ride the wave of knowledge and insights from the week to help accountants and auditors in the blockchain space do something daring. In today’s edition, we’ll explore the ongoing innovation of developer tools, the challenges of implementing upgrades, the importance of mining, the shifting focus to Asia, the impact of regulations on investment decisions, the scalability of networks, the operational mechanism of stablecoins, the competition in the derivatives market, the challenges faced by miners in Venezuela, the expansion of data analytics services, and the potential for new tokens. So grab your can of knowledge and let’s dive in!

Top Stories

Consensys to sunset Truffle and Ganache developer tools Consensys, a blockchain development firm, is discontinuing its Truffle and Ganache developer tools and shifting its focus to MetaMask Snaps and its software development kit (SDK), signaling a move towards empowering developers with new web3 tools; this is relevant to blockchain and cryptocurrency as it highlights the ongoing innovation and evolution of developer tools in the blockchain space. Ethereum core developers discuss if Dencun upgrade may be deployed early next year Ethereum’s upcoming upgrade, Dencun, which aims to address scalability issues, might face a delay to early next year if it is not introduced on public testnets before November, potentially impacting its mainnet deployment and disrupting earlier projections; this is relevant to blockchain and cryptocurrency as it highlights the challenges and complexities of implementing upgrades and the impact it can have on the timeline and development of Ethereum. Ethereum’s Shanghai Upgrade Has Been ‘Disappointing,’ JPMorgan Says This article discusses The Merge, a transition from PoW to PoS consensus mechanism, the Shanghai upgrade enabling the withdrawal of staked ether, and the concept of DeFi and TVL in the blockchain and cryptocurrency world. JPMorgan says Ethereum’s activity post-Shanghai upgrade has been ‘disappointing’ Despite the significant reduction in energy consumption and increase in staking following the Ethereum Shanghai upgrade, JPMorgan analysts have expressed disappointment with the lack of growth in network activity, suggesting that various negative factors such as market collapses, regulatory uncertainty, and diminishing interest from institutional investors may have outweighed the upgrade’s positive impact; furthermore, concerns about Ethereum’s centralization and mixed results from Layer 2 networks have been raised, with the industry now looking towards the EIP-4844 upgrade for potential network activity improvements. Bitcoin mining rig maker Bitmain plans to invest $54 million in bankrupt Core Scientific Bitmain, a leading crypto mining rig manufacturer, plans to invest $53.9 million in Core Scientific, a bitcoin mining firm, to expand their relationship and finance the purchase of new mining machines, a move that highlights the importance of mining in the blockchain and cryptocurrency industry. Electric vibe at Asia crypto conferences points toward growing momentum The article highlights the growing momentum and optimism in Asia’s digital asset industry, particularly in countries like South Korea, Singapore, and Hong Kong, indicating a shift of the crypto market’s focus from the West to Asia, where interest in cryptocurrencies is strong among retail traders and institutional investors are ready to enter the space, making it a significant development for the blockchain and cryptocurrency industry. European Crypto Asset Manager CoinShares to Enter U.S. Hedge Fund Fray According to a report by PwC, fewer traditional hedge funds are investing in cryptocurrencies, and some are even considering relocating due to the regulatory environment in the US, making this relevant to blockchain and cryptocurrency as it highlights the impact of regulations on investment decisions and potential migration to crypto-friendly jurisdictions. Bybit suspends services in the UK after CEO Zhou said exit was likely Cryptocurrency exchange Bybit is exiting the UK market due to new marketing rules imposed by the Financial Conduct Authority, which aim to improve transparency and accuracy in the marketing of crypto products; the suspension will allow Bybit to focus on meeting future UK regulations. Polkadot eyes support for 1,000 parachains in future Polkadot’s core developers are planning to increase the limit of the ecosystem’s parachains from 100 to eventually 1,000 with the help of software updates, such as the upcoming “asynchronous backing” update that aims to improve block time and block space; this is relevant to blockchain and cryptocurrency as it demonstrates the ongoing efforts to scale and enhance the capabilities of the Polkadot network, which serves as an interoperability network for various application-specific blockchains. What is USDT and how does it work? A guide to Tether’s stablecoin USDT, or Tether, is a stablecoin that aims to provide stability in the volatile cryptocurrency market by anchoring each token to an underlying asset. It works through a reserve and issuance system backed by a mix of assets. While USDT offers advantages like stability and liquidity, it faces challenges due to controversy surrounding its reserve system and lack of full audits. This article is relevant to blockchain and cryptocurrency as it discusses the operational mechanism and risks associated with USDT, an important stablecoin in the market. Coinbase mulled buying FTX Europe post-bankruptcy: report Coinbase considered acquiring FTX Europe, the European unit of bankrupt exchange FTX, as it explored expanding its crypto derivatives offerings, but talks never advanced to a late stage; however, Coinbase continues to express interest in an acquisition in the future, which is relevant to blockchain and cryptocurrency as it shows the growing interest and competition in the crypto derivatives market. Coinbase Has Recently Held Talks to Buy FTX Europe: Fortune So, here’s the deal: FTX Europe, a European exchange, has caught the eye of potential buyers because of its licenses to offer perpetual futures, a super popular type of derivative that’s all the rage in the crypto world. Buyers like Crypto.com and Trek Labs are interested in getting their hands on this exchange, which could mean big things for the blockchain and cryptocurrency scene. Bitcoin mining machines and rocket launchers seized in prison raid: report Venezuelan authorities seized Bitcoin mining machines from a prison, highlighting the popularity of cryptocurrency mining in the country due to hyperinflation and low electricity costs; however, the profitability of the operation is uncertain as the machines appeared to be older models. This article is relevant to blockchain and cryptocurrency as it demonstrates the challenges and crackdowns faced by miners in Venezuela, as well as the country’s previous interest in promoting its national cryptocurrency, the petro. Google Cloud adds 11 new blockchains to BigQuery data analytics service Google Cloud’s BigQuery data analytics service now supports 11 additional blockchains, including Ethereum, Tron, and Polkadot, allowing users to make complex on-chain queries and analyze data such as NFT minting and transaction fees, further expanding Google’s crypto data services. Base token not ‘ruled out entirely,’ Coinbase’s Paul Grewal says: report Coinbase has not ruled out the possibility of creating a new token for its Ethereum Layer 2 network, Base, as it believes a token could be viable in the future; however, for now, Coinbase is focused on providing tools and technology for users to experiment with and expand opportunities in the crypto space, while also advocating for clearer regulations to strike a balance between innovation and consumer/investor protection.