Welcome to the protocol, CoinDesk’s weekly wraps of the most important story of cryptocurrency tech development. I’m Ben Schiller, the opinion of CoinDesk and featured editor.
In this issue:
- Can Rollups solve Ethereum’s problem?
- Lido goes modular
- Uniswap finally opens Unveils Unichain
- Ethereum’s PECTRA upgrade will come
Network news
Based on rescue rollups: In recent years, Ethereum embraced a layer-2 scaling roadmap-a plan that encouraged the development of third-party auxiliary networks called “Layer-2 Rollups” -To help the Base Ethereum Base ecosystem. Offloading activity to these upstart networks has helped drop fees and improve speeds for end-users, but it leads to a massive, deep ecosystem fragment of the 2S layer. But while Layer-2 networks are all posting data back to Ethereum, they often struggle to communicate directly to one another, which means the passage of property and data between them can be expensive and intricate. There is also the risk of centralized sequencers: the reliance on the black-controlled company to pass the transaction data between the blockchain layers. As a result, some Ethereum developers push a rollup tech that takes a new security approach and interoperability: “Based on rollups. Instead of touching them on a separate layer-2 network. The Sequencer Batches of multiple transactions and submit them to the Ethereum for removal. While sequencers provide efficiency and generate revenue for rollup operators through strategic ordering of transactions, they also introduce a single point of failure. Rollup based on this vulnerability by using the built-in Ethereum order-the massive community of validators-than a single centralized succession. Rollups such as optimism, arbitrum, base, zksync, and blast grow rapidly to support greater volume of transaction than the Ethereum itself. According to L2Beat. As the Ethereum becomes larger and the layer-2 networks become more important in its functioning, improving communication between layers-2s-in other words, improving “composability” —is becoming more important than Before. – Margaux Nijkerkk Read more.
Lido goes modular: Developers behind Lido, the largest staking service at Ethereum, suggested revamping the staking platform with modular “vaults.” The new plot will introduce stvaults, a customizable outfit designed to help Lido accommodate institutions and more complex staking techniques. Lido is currently allowing investors to pool their ether (ETH) together and “stake” their crypto -that their network tokens are locked, helping to secure it in exchange for interest. Lido Pioneered Liquid Staking: Users get a receipt with their deposits called Lido Staked ETH (STETH) that they can trade at any time. With liquid staking in Lido, the entry and release of staking positions has become as simple as buying and selling steth tokens. Lido V3 stvaults are “modular smart contracts designed to meet the diverse and emerging needs of Ethereum participants,” according to a press release shared with CoinDesk. Upgrading will allow staking setups beyond cut-and-dry liquid staking. Specifically, stvaults can help institutional stakers who want to personalize their staking setups, node operators who want to attract high-volume stakers, and asset managers who want to create new cases of Using staking. “What is important to understand with customizable infrastructure, is that you can generally build more complex products,” said Konstantin Lomashuk, the founder of Lido Staking Protocol. – Margaux Nijkerkk Read more.
Unichain finally: The Uniswap Labs, the main developer behind one of the largest decentralized exchanges (DEX), Uniswap, shared PEB. OP stacks of optimism, unichain-like other layer-2s in Ethereum-are more fast and cheaper transactions compared to Ethereum mainnet. Developers can deploy apps to the network, which is specifically specific for decentralized finance (DEFI) and aimed at serving as “homes for liquidity throughout the chain,” according to the UNISWAP Labs. For Uniswap Labs, the benefit of launching a layer-2 is twice: it will provide a better experience for uniswap users and similar platforms, and this will create a new income opportunity in the form of Network fees. A representative for the Uniswap Labs told CoinDesk that “around 20%” the chain revenue went straight to the company. Unichain is in Trial since October 2024 and IS Classified by the UNISWAP Labs as a “stage-1” rollup, meaning it has elements of decentralization but remains some care controlled by the center in this early stage. The network was built on OP Stack, a modular plot allowing developers to develop interoperable layer-2 chains based on optimism Optimistic Rollup Technology. Many well-known teams came out with their own op stack-based layer-2’s, including Coinbase’s’Base‘, Kraken’s’Ink‘World’World Chain‘and Sony’Soneium. ‘”We look forward to a world of many, many different cases of use, where trade is a small subset,” Adams told CoinDesk in an interview. In collaboration with Ethereum Research and Development Firm Flashbots, the Uniswap team said it created a reliable environmental kill defi by allowing for more advanced trading and faster end of the transaction. – Margaux Nijkerkk Read more.
Pectra in April: Ethereum developers officially set test dates for Pectra, the first network upgrade to 11 months, putting it on the track for a potential release date of April. Pectra contains a set of improvements – with a special focus on wallets and validators – but it came to a period of higher investigation for Ethereum, which recently faced pressure from its community to re – Focus and meet competitors. Ethereum’s major builders decided on Thursday during their Bi-week “all major developers” to start the PECTRA test on February 26th at Holesky Testnet, with a follow-up test on Network Sepolia Testnet For Mar. 5. Those tests must succeed, the developers will re -recontain on March 6 to determine when the upgrade will be officially launched. According to Tim Beiko, leading the support of the protocol at the Ethereum Foundation, developers expect to upgrade to the mainnet in early April. The Pectra-a portmanteau that represents two separate upgrades, prague and electrics-includes eight major improvements to the second largest blockchain. Among the long-awaited EIP-7702, which should To improve the user experience of crypto wallets. The Ethereum community has faced an identification crisis over the past few weeks. This native token, Ether (ETH), is underperforming against other cryptocurrencies, and competitors networks like Solana have gained attention and talent from the Ethereum ecosystem-the first programmable blockchain and still the most trafficked. In the midst of controversy – most of these are directed to the Etheruem Foundation, coordinating chain upgrades and currently undergoing a major leadership shuffle – developers hope that Pectra will help put the network on steadier Footing. – Margaux Nijkerkk Read more.
Center for money
El Salvador Dispatch
Berlín, a city of 20,000 people, is home to El Salvador’s second Bitcoin economy. “Bitcoin City is already existing. It’s called Berlín,” said one resident. Tom Carreras Report.
Linkdao launched at the base
Linkdao started by selling NFTs, but the market moved In time from time to time.
Regulation and policy
Hester Peirce, head of the new SEC taskforce, said Memecoins likely to fall out of the regulator’s jurisdiction.
