• Ethereum developers are preparing to launch the Shanghai Capella testnet this week.
• The MEV-Boost allows validators to access blocks from a marketplace of builders.
• Despite recent upgrades, Ethereum still has a long way to go before it reaches its final state.
Ethereum Shanghai Capella Testnet
The Ethereum development team is set to launch the Shanghai Capella testnet this week during an All Core Developers Consensus Call (ACDC). This upgrade includes the Maximum Extracted Value (MEV) Boost, an open-source middleware run by validators that provides access to a competitive block-building market. It was developed by Flashbots as an implementation of the Prosperity Builder Separation (PBS) for the proof-of-stake blockchain underpinning the Ethereum network. The activation date and final client releases have been announced by Tim Beiko, an Ethereum core developer.
The MEV-Boost enables validators to acquire blocks from a marketplace of builders. This system is designed with Prosperity Builder Separation (PBS) in mind and can help improve overall efficiency and reduce transaction costs on the network. It also gives validators more control over their transactions and increases security on the netwrok.
According to Danny Ryan, Ethereum Foundation researcher and network upgrade coordinator, despite progress made in terms of development and customer safety this year, there is still a complex roadmap ahead until all features of the protocol are finalized. He suggests that finding a “sufficient end state” for a secure and decentralized blockchain will take many years as there are immediate technological concerns that need addressing first.
The Merge was recently released onto the network which enabled validators to withdraw their stake from the Beacon Chain back onto the execution layer – another step towards making it easier for users to interact with smart contracts on Ethereum’s main chain while maintaining security across all networks involved in staking activities.
Sepolia Testnet Launch
Finally, Devnet7 with Zheijang testnet were activated alongside Shanghai/Capella’s upgrade which will be deployed on Sepolia – allowing developers plenty of time prior to launch date to test out new features before going live with them on MainNet later this year or early next year depending on how successful testing goes over these coming months..
• The DXY Dollar Currency Index has recently climbed to the highest levels since the inception of Bitcoin, potentially impacting prices of cryptocurrencies.
• The DXY is attempting to find support, but momentum could prove to be too heavy for the dollar to defend against and lead to a bearish crossover on the one month chart.
• A bearish DXY crossover could lead to further continuation in crypto prices, while a bullish divergence would cause further collapse in crypto markets.
The Almighty Dollar Dominance
The almighty dollar and its currency index (DXY) are at an important inflection point with potential impact on Bitcoin and other cryptocurrencies. Recent price movements have given rise to a bull market in cryptocurrency, but this trend can be overturned if the dollar regains dominance.
Devastating Impact Of Dollar Dominance
In 2022, cryptocurrencies were affected by US dollar dominance as measured by the DXY index which reached highs not seen since Bitcoin was introduced. As USD is often used in trading pairs due to its status as global reserve currency, when it strengthens it weakens other currencies in the pair. Fortunately for crypto markets, signs of weakening dollar have caused a much needed relief rally across many asset classes.
Bearish Crossover Could Lead To Crypto Continuation
The DXY is composed of USD trading against GBP, JPY and other currencies and currently appears to be making a rebound on monthly charts. However if momentum proves too heavy for the dollar and MACD crosses bearish it could result in a dramatic decline in value leading to further continuation of cryptocurrency prices.
Bullish Divergence Would Lead To Collapse In Crypto Markets
On the flip side, should MACD fail confirm a bearish crossover instead diverge upwards then it could cause further collapse across crypto markets resulting from increased strength of US dollar over other currencies or assets.
Overall there are two possible scenarios that could play out depending on how strong US dollar remains relative to other currencies or assets – either continuation or collapse of current bull market for crypto-assets depending upon whether bearish or bullish divergence occurs respectively
• China is launching a research center for blockchain innovation in Beijing, called the National Blockchain Innovation Center.
• The center will focus on basic blockchain theory, key technologies’ software and hardware, including basic platform and verification networks.
• The Chinese government has also launched e-yuan (e-CNY) to promote CBDC adoption across China.
China Moves Deeper Into Blockchain Technology
China has announced plans to move deeper into blockchain technology after its ban on cryptocurrency transactions in 2021. A recent report from China Daily noted that the country is set to launch a research center for blockchain innovation in Beijing – the National Blockchain Innovation Center.
Research Goals of the Center
The innovation center will work with local universities, blockchain experts, and firms to explore core blockchain technologies. It will focus on basic blockchain theory, key technologies’ software and hardware, including basic platform and verification networks. The Beijing Academy of Blockchain and Edge Computing (BABEC) will take charge of the new research institution; BABEC is famous for its ChainMaker blockchain which currently executes 240 million transactions per second (TPS).
China’s Digital Infrastructure Push
China’s push towards digital infrastructure has been bolstered by its efforts in developing a Central Bank Digital Currency (CBDC). In September 2022, it was reported that China accounted for 84% of all filed blockchain applications worldwide; however only 19% of these applications were approved by the state. The Chinese central bank has rolled out e-yuan (e-CNY), worth millions of dollars, across the country to promote CBDC adoption.
Cryptocurrency Ban Still Stands
Despite China’s active involvement in exploring innovations related to blockchain technology, its stance against cryptocurrency trading still stands firm; meaning citizens are still prohibited from engaging in such activities within the country or abroad.
It appears that China is actively making moves towards becoming a leading player within the field of distributed ledger technology through various initiatives such as launching national research centers focused on innovation and rolling out e-yuan currency as part of its CBDC project. Despite this progress being made, its ban on cryptocurrency remains firmly intact for now at least.
• The Bank of England (BoE) and UK Treasury are set to back the development of a state-owned central bank digital currency (CBDC), popularly known as “Britcoin” or “digital pound.”
• After 21 months of research and consultations, it would appear both parties have come to a decision regarding the introduction of the “digital pound.”
• The Bank of England and the UK Treasury are expected to officially announce their stance next week, rolling out a roadmap that will lead to the successful introduction of the “digital pound” by 2030.
What is Britcoin?
The Bank of England (BoE) and UK Treasury are set to back the development of the British central bank digital currency (CBDC), popularly known as “Britcoin” or “digital pound.” This CBDC is a digital token issued and distributed by a nation’s central bank. It has been discussed since April 2021 when the UK Treasury launched a joint task force with BoE to evaluate its feasibility for British businesses and households.
Why do we need Britcoin?
Bank of England Governor Andrew Bailey and Chancellor of the Exchequer Jeremy Hunt are expected to back its introduction due to an expected decrease in cash use as society evolves into a cashless, digital economy. In consultation report presented by anonymous sources, they stated that “it is likely a digital pound will be needed in the future”.
When will we get Britcoin?
After 21 months of research and discussions, Bank of England Governor Andrew Bailey and Chancellor Jeremy Hunt are expected to make their official announcement next week, rolling out a roadmap leading to successful introduction by 2030.
Benefits & Risks
The potential benefits brought about include increased efficiency compared to paper money or traditional banking methods due ease in transferring funds quickly between users with low transaction costs. However, there could also be risks associated with CBDCs such as financial stability concerns from increased access leading to market manipulation or new avenues for money laundering activities.
Though discussions for this initiative began in April 2021, both financial authorities have finally come together on their decision – making official announcement next week with roadmap leading up till year 2030 when this “Digital Pound” will be successfully introduced into UK economy. Both potential benefits & risks need to be taken into consideration before its actual implementation & usage can begin across Britain.