What’s in Yesterday ?
– Cream Finance Protocol second time hacked
– PanCake Swap under the same DNS attack
– NFT – Non fungible tokens are not what it seems
– Ethereum does upgrade and countless forks on Ethereum 1.0 sense?
Ok Yesterday we have seen the Bitcoin price getting a dip for buying when influencers pushed the market with a 2.2 Billion Dollar sell of hit. We see more institutionalist buy in. Normally they use OTC markets instead of exchanges to stay more private. But interestingly they use the dip buy and influencing to pay commission fees. Trades set by a commissioner fee of 4-5% connecting Escrow, Buyer and Seller.
The few Decentralized Over the Counter Markets does not provide liquidation. More shorter and fast sellers and buyers who do day trades dominate the offset market to influence Future Contracts and ETF’s. The volatility we have seen is normal. Always people from Bitcoins beginning warned about open an ETF because market cap is not high enough to flatten the curve and influencers would have more effect in whispering FOMO news to the markets which reacts heavenly or in this case leading into a fall down before Bitcoin moves over 65k. This is not a bearish sign. It is as said day business and the high volatility is the new norm.
Another reason for the over sale is the DeFi market itself. Sometimes you have carefully to listen who is talking.
Let’s talk about Non-Fungible Tokens:
What are these strange items? Oh, really these tokens represent an asset which is unique. It is a smart contract which is placed on a ERC-20 protocol distributed ledger system, which we call falsely Blockchain.
The smart contract has access to ownership and creator of this Items. For example, you produce a unique piece of art. This must not be present in a museum. You could show it on a web page. For this piece of art, music, seldom car, or whatever, the smart contract called token is a document of ownership. The smart contract also collects the information where this item is physically represented or if it exists only in the internet, where can you see it.
Means anyone knows who the right owner is but no one else can take ownership. This is a great idea to secure copyrights and more. But this only secure as we have learned, if the law is willed to accept users who creating value in this way and want it to become a subject of strong copyright protections.
Warner Brothers creates Batman tokens with help of the DLT system Velve where tokens can be hosted. DC Comics want to sell all the tokens for a near 1 Million Dollar revenue. DC also announced it will fight people who creates their own Batman Tokens. And here is the conflict. Every piece you create by yourself is unique as long you do not copy.
If DC says you can’t create your own tokens about Batman, it is – under law – wrong. Yes, you can. Because as time of writing no law has been shown up protection for people creating and presenting their own ideas about existing things. So for example you see a real cool old building and you will paint it maybe 100 of other paintings about this building exists. But you have done it on your own.
A Non-Fungible Token is a DLT System proofed possibility to protect your copyright and ownership of something you created on your own, not copy and paste. If you decide to make a Batman Artwork you do not steal the copyright of Batman, because there is no court who judges about this. DC Comics exists since more than 50 years. Thousands of people have made Artwork about the superheroes. And there has been never a copyright claim because usually people loving the art also interested reading the comics and watching the movies about.
Here it is the same. It’s a fanboy game. The statement of DC is nothing else than greediness. But what does this mean for the whole NFT space? Uncertain fields! If DC will start a trial and maybe win about it will kill trust and value for investors believing in uniqueness and not in safeguard and copyrights without a case, because the founder of the token created an original.
The whole market will die, and the project DC tokens with them.
DeFi markets are a good place for the old financial world of trade and lending without having insurances by the borrower. This is a great thing for the tokenomy and the DeFi related smart contracts token for decentralized financial management. Problem everything is based on Solidity in an ERC protocol. This is the same which has been hacked, when Ethereum wants to show the DAO and proof a system can exist on its own by smart contracts and also collect money by issuing project maps without anyone else than the smart contract doing this.
On the same day the presentation to the public started it got hacked and Ethereum suffered a long road from this hack.
Since this day we know Satoshi Nakamoto was right killing smart contracts because they create vulnerability to Bitcoins system and creates the touring problem (Repeating a process until it freezes)
People started to develop more and more ERC-20 tokens as if the DAO hack never happens and disregarding the speed problems of Etherum. What happened a series of hacks against Ethereum and the DeFi scene. A lot of money has been taken out the system but the DeFi market was fighting against with a huge amount of money. This money would have been the solution of hacks, but investors haven’t got any background or educational level in this fields.
So Solidity contracts number growth around the planet and the big time bomb is still there. The past DeFi hacks all changed and attacked the smart contracts of a token, so investments have been led to wallets the hacker controls for example.
Yesterday we see the Cream Finance Protocol hack and same time the Pancake Protocol hack.
Both have a lack of DNS security lack. In easy terms the hacker got control over the websites and because all these systems are custodian based, they could extract the Seed phrases from the users and take the funds out of their hands into the hacker’s own pocket.
Ethereum – where do we go?
The hottest discussed topic to Ethereum is Ethereum 2.0. This should be the cheapest way to work with ETH as it is based on Proof-of-Stake from now on. But why do we see all the implementations on Ethereum 1.0 making the system faster, more reliable? The ongoing gas fees because solving the touring complete problem. Every time you have to send gas to activate a smart contract function, it could not stop in a loophole and freeze the system.
That’s why Ethereum can’t leave the gas fee discussion at all but cut of revenues from miners, which may have become greedy. Same you see with high price in Bitcoin. There are the fees not needed for contracts but for transactions. People transacting during times with high traffic could pay a higher fee to be proceed faster. In former times this fee has a limited range. But when Bitcoin started to fell down after $20.000 developers and community decided to change into a different system where you can pay more fees to be proceeded in a block faster.
This run-on high fee is the result. The question for Ethereum miners is: Why should I mine for less fees? This doesn’t make sense because Ethereum 2.0 kills mining by changing to Proof-of-Stake. All ETH miners now would have to seek for another job. Why not mine Bitcoin .