Daily Crypto #86
Layer-2 network StarkWare to open source its scaling technology, Orion Protocol post mortem details $3M, Uncovering Bitcoin’s largest block mined, China pushes Digital Yuan
Layer-2 network StarkWare to open source its scaling technology
Leading layer-2 (L2) solutions provider StarkWare has announced that it will be making its software open-source.
On Feb. 5, layer-2 technology firm StarkWare revealed plans to make its Stark Prover software open source.
The Israeli-based company said the move will “boost accessibility to developers, promote collaboration within the community, and offer other benefits.”
Eli Ben-Sasson, president and co-founder of Starkware, said, “we think of the Prover as the magic wand of Stark technology. It wondrously generates the proofs that allow unimaginable scaling.”
The path to StarkWare decentralization
The firm scales Ethereum by using zero-knowledge (ZK) proofs. ZK rollups are a way of proving the validity of a statement without revealing what the statement is. This enables the processing of partial transaction data off the root chain decreasing its load. The result of these rolled-up transactions is much faster throughput while maintaining security.
Furthermore, the Stark Prover will be renamed the “Starknet Prover” and placed under an Apache 2.0 license. The firm has already begun open source some elements, including Cairo 1.0, Papyrus Full Node, and the new StarkNet Sequencer.
Orion Protocol post mortem details $3M DeFi exploit
Orion Protocol is the latest decentralized finance (DeFi) protocol to suffer an exploit this year.
Orion Protocol was the victim of a reentrancy exploit on Feb. 2, resulting in the loss of around $3 million in ETH.
Furthermore, Orion CEO Alexey Koloskov clarified that the damage was contained to an internal broker account and that user funds remained safe.
Over the weekend, Rekt published a post-mortem of the attack, one of the largest of the year so far in terms of losses.
On Feb. 4, Orion posted an update stating that it had addressed several issues, such as bug fixes and interface changes. Rekt concluded that the $3 million loss has “motivated Orion to take a more controlled approach.”
Uncovering Bitcoin’s largest block mined and the impact of NFTs
On Feb. 1, 2023, the Bitcoin network made history with the mining of the largest block ever recorded. The block, which contained nearly 4 million transactions, was sent out by an indie developer using the NFT project “Taproot Wizard.”
Despite the developer and project remaining unnamed, the transaction has caused a stir in the Bitcoin community. Some call it an attack on the BTC network. Still, the developer, Udi Wertheimer, and former Bitcoin Core developer, Casey Rodarmor, argue that the transaction is an innovation based on the concept of “Ordinals”.
Running NFTs of Bitcoin
In the NFT project “Taproot Wizard”, the publisher uses a specific satoshi to refer to a JPG image to implement the identification and circulation of the NFT. The concept is innovative, but it has also sparked concern within the Bitcoin community.
China pushes Digital Yuan CBDC adoption to kick off year of the rabbit
In an effort to increase adoption, China’s central bank digital currency (CBDC), commonly referred to as the digital yuan, was promoted during the Lunar New Year.
According to a report by the Global Times, Chinese cities announced digital yuan initiatives totalling more than $26.6 million. These initiatives included subsidies, consumption coupons, and other efforts during the Lunar New Year holiday season.
200 CBDC events launched
Two hundred digital yuan events were reportedly launched across China. The report highlighted that the cities of Jinan in the Shandong Province of East China and Lianyungang in Jiangsu Province distributed digital yuan coupons over the holiday period. In addition, Shenzhen in Guangdong Province in South China issued 100 million yuan in digital currency to aid the catering sector.
These promotions aim to encourage the mass adoption of a centralized digital currency through everyday use. At the People’s Bank of China’s 2023 Working Conference, the apex bank announced that the CBDC trial was “running steadily.”