Ethereum, the second-largest cryptocurrency by market capitalization, has been undergoing a series of upgrades and innovations in the past few years. The most notable ones are the transition from proof-of-work to proof-of-stake consensus mechanism, the implementation of sharding and rollups to improve scalability and efficiency, and the introduction of new features and standards to enhance interoperability and usability.
However, the Ethereum core developers are not resting on their laurels. They have a bold vision for the future of the network, and they are working hard to make it a reality. We will introduce you to two of the most influential and active core devs in the Ethereum community: Dencun and Pralectra. We will also explore their plans and projects for 2024, which promise to bring Ethereum to new heights of innovation and adoption.
Dencun: The mastermind behind EIP-1559 and EIP-3675
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Dencun is a pseudonymous developer who has been contributing to Ethereum since 2017. He is best known for proposing and leading the development of two of the most impactful Ethereum Improvement Proposals (EIPs) in recent history: EIP-1559 and EIP-3675.
EIP-1559, which was activated in August 2021, introduced a new fee mechanism that dynamically adjusts the gas price based on network demand and burns a portion of the fees, creating a deflationary pressure on ETH supply. EIP-3675, which was implemented in December 2021, finalized the transition from proof-of-work to proof-of-stake by merging the Ethereum mainnet with the Beacon Chain, the backbone of the new consensus protocol.
Both EIPs have been widely praised by the Ethereum community for improving the security, sustainability, and user experience of the network. They have also boosted the value proposition of ETH as an asset, as evidenced by its strong performance in the market.
Dencun is not done yet. He is currently working on several projects that aim to further enhance Ethereum’s capabilities and competitiveness. One of them is EIP-4488, which proposes to reduce the gas cost of call data, the data that is passed to smart contracts when they are executed. This would lower the barriers for developers and users to deploy and interact with complex applications on Ethereum, such as decentralized exchanges, lending platforms, gaming dapps, and more.
Another project that Dencun is involved in is EIP-6484, which suggests introducing a new opcode called BASEFEE that would allow smart contracts to access the current base fee of the network. This would enable new possibilities for fee management and optimization, such as fee abstraction, fee delegation, fee rebates, and more.
Pralectra: The pioneer of zk-SNARKs and zk-rollups
Pralectra is another pseudonymous developer who has been working on Ethereum since 2018. She is a leading expert and innovator in the field of zero-knowledge proofs (ZKPs), a cryptographic technique that allows users to prove that they know some information without revealing it.
Pralectra has been instrumental in bringing ZKPs to Ethereum, both at the protocol and application levels. She is one of the main contributors to EIP-1962, which added support for various ZKP primitives to the Ethereum virtual machine (EVM), enabling developers to use them in their smart contracts. She is also one of the co-founders and core developers of ZKSync, one of the most popular and advanced zk-rollup solutions on Ethereum.
ZKSync is a layer-2 scaling platform that uses ZKPs to compress and verify transactions off-chain, while maintaining security guarantees from the mainnet. ZKSync can process thousands of transactions per second with minimal fees and latency, while supporting smart contracts, token transfers, NFTs, and more.
Pralectra is constantly pushing the boundaries of ZKPs and zk-rollups on Ethereum. She is currently working on ZKSync 2.0, which aims to bring full EVM compatibility and programmability to zk-rollups, allowing any existing or future dapp to run on ZKSync with zero friction or compromise. She is also working on ZKPorter, a new scaling technique that combines zk-rollups with data availability sampling, resulting in an exponential increase in throughput and a significant decrease in cost.
ZKSync 2.0 and ZKPorter are expected to launch in 2024, marking a new era of scalability and privacy for Ethereum.
Dencun and Pralectra are just two examples of the many talented and dedicated core developers who are making Ethereum better every day. They represent the ethos and vision of Ethereum: a decentralized, open-source, community-driven platform that strives for innovation and excellence.
As we enter 2024, we are excited to see what Dencun, Pralectra, and the rest of the Ethereum core devs will bring to the table. We are confident that they will continue to surprise and delight us with their groundbreaking ideas and implementations. We are proud to support and celebrate their work, and we invite you to join us in following their progress and achievements.
Cryptocurrency market is experiencing a significant divergence between Bitcoin and Altcoins
Meanwhile, the cryptocurrency market is experiencing a significant divergence between Bitcoin and altcoins. While Bitcoin is holding its price below $50,000, most altcoins are dumping hard, losing value against both the US dollar and BTC. What is causing this phenomenon and what does it mean for investors?
One possible explanation is that Bitcoin is attracting more institutional and corporate demand, as evidenced by the recent purchases of MicroStrategy, Tesla and Square. These entities are buying large amounts of Bitcoin as a hedge against inflation and currency devaluation, and they are not interested in speculating on altcoins. This creates a strong support for Bitcoin’s price, while reducing the liquidity and demand for altcoins.
Some examples of altcoins that have suffered from this trend are Ethereum, which dropped from over $4,000 to below $3,000 in May, Cardano, which lost more than 50% of its value in the same month, and Dogecoin, which plunged from over $0.7 to below $0.3 after Elon Musk’s appearance on Saturday Night Live in 2021.
Another possible explanation is that Bitcoin is benefiting from its network effects and its status as the most secure and decentralized cryptocurrency. As the regulatory environment becomes more uncertain and hostile, especially in countries like China and India, investors may prefer to stick with the proven leader of the crypto space, rather than risk their funds on less established and more vulnerable projects. This creates a positive feedback loop for Bitcoin’s price, while increasing the volatility and risk for altcoins.
Some examples of altcoins that have faced regulatory challenges are Binance Coin, which was banned by several financial authorities around the world, Ripple, which is involved in a lawsuit with the US Securities and Exchange Commission, and Tether, which is under investigation for its reserve claims.
A third possible explanation is that Bitcoin is undergoing a consolidation phase, after reaching a new all-time high of over $60,000 in March 2021. During this period, traders may take profits from their Bitcoin positions and rotate them into altcoins, hoping to catch the next wave of growth.
However, this strategy may backfire if Bitcoin resumes its uptrend and breaks out of its current range. This creates a temporary boost for altcoins’ price, while exposing them to a potential reversal and sell-off. Some examples of altcoins that have benefited from this rotation are Polygon, which surged from $0.03 to over $2 in May, Solana, which increased from $13 to over $40 in the same month, and Uniswap, which reached a new all-time high of over $40 in May 2022.
Regardless of the explanation, the divergence between Bitcoin and altcoins is a clear sign of the maturation and differentiation of the cryptocurrency market. Investors need to be aware of the different factors that affect each coin’s performance and adjust their portfolios accordingly.
While diversification is still advisable, it may not be enough to protect against the risks of holding altcoins in a bearish environment. Investors may need to adopt a more active and selective approach, focusing on quality projects with strong fundamentals, innovation and adoption.