Vitalik slams cross-chain dYdX announcing full decentralization

Vitalik slams cross-chain dYdX announcing full decentralization

Vitalik Buterin outlines his views on the world of cross-chain blockchains. dYdX has announced plans for full decentralization in 2022. And Near Protocol raised $150 for Web3 technology.

Vitalik said he is optimistic about multi-chain rather than cross-chain, Web3 world.

Ethereum co-founder Vitalik Buterin shares his assessment of the security limitations of implementing a full-featured cross-chain bridge within the blockchain industry.

According to Buterin, storing assets on their native chain provides a higher level of security compared to cross-chain activity, thus defending against 51% attacks. He believes: “It is always safer to hold Ethereum-native assets on Ethereum or Solana-native assets on Solana than Ethereum-native assets or Solana-native assets on Solana.”

“Why I think the future will be *multichain*, but not *crosschain*: The security of bridges spanning multiple ‘sovereign realms’ is fundamentally limited.”

— vitalik.eth (@VitalikButerin) January 7, 2022

Sharing a series of examples to support his thesis, Buterin noted that if a malicious entity were to attempt a 51% attack on Ethereum, transactions made by a party completely ignorant of it could be censored and/or recovered, but not will be blocked and not lost.

In the most extreme case, even if 99% of the protocol is broken, user funds are still safe, as nodes overwhelmingly support the remaining 1% of rule-following blocks, governing decision-making.

By contrast, operating on a cross-chain bridge between Ethereum and Solana would result in irreversible losses, Buterin argues. This problem is exacerbated as the chain grows.

Let’s assume that 51% of attacks occur on one of the 50 chains. In this case, all chains become vulnerable, which he calls “a systemic contagion that will threaten the entire ecological economy.”

dYdX to fully decentralize by the end of 2022

dYdX, a second-layer derivatives protocol, this week unveiled the fourth iteration of its roadmap, laying out plans to become an open-source, community-focused, fully decentralized platform later this year.

The architecture operates in a dual mode, where parts of the protocol, such as staking and governance, are decentralized, while core functions, such as off-chain order books and matching engines, are controlled by an in-house subsidiary, dYdX Trading Inc, with centralized servers , as supported by Amazon AWS.

“There will be no central point of control or failure of the future protocol,” said a representative from the company, assuring that “all aspects of the protocol will be fully controlled by the community.”

Last month’s AWS technical glitch highlighted the real vulnerabilities of some cryptocurrency businesses, including dYdX, Binance.US and Coinbase, and their inherent reliance on centralized servers to maintain the network.

At the time, dYdX shared a sincere update on its official Twitter account and promised to seek a clear solution to the problem, stating:

“Unfortunately, there are still some parts of the exchange that rely on centralized services (AWS in this case). We are firmly committed to full decentralization, which remains our number one priority as we continue to iterate on the protocol. one of the tasks.”

While fulfilling its desire for decentralization, dYdX is also pursuing improvements to its interface trading platform, introducing spot, margin and synthetic trading opportunities, as well as appointing an external auditor to evaluate business operations.

Near Protocol Raises $150M to Accelerate Web3 Adoption

PoS chain Near Protocol completed a $150 million seed round this week with the aim of increasing the visibility and adoption of Web3 applications across its network, with the focus always on expanding its audience and community base to Latin America, Turkey and India and other areas.

The capital raise was led by well-known hedge fund Three Arrows Capital, with further participation from Mechanism Capital, Dragonfly Capital and Andreessen Horowitz’s Silicon Valley-based fund a16z. Individual angel investors include British billionaire hedge fund manager Alan Howard and Aave founder Stani Kulechov.

In a Medium blog post, Near Foundation CEO Marieke Flament shared her optimism about the latest funding:

“We are delighted to have such a fantastic list of backers supporting NEAR’s mission. We look forward to using this funding to improve the use of blockchain technology in a growing number of countries around the world.”

In October 2021, the smart contract platform allocated $800 million for new initiatives within the decentralized finance (DeFi) space, such as developer applications, startup grants, and geographic funds.

Token performance

The analysis showed that the total TVL of all DeFi protocols fell slightly by 2.77% throughout the week to a figure of $128.15 billion, continuing to accompany the broader market decline.

Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market cap have been mostly bullish over the past seven days.

Secret (SCRT) led the way with a 15% gain for the second straight week. Terra (LUNA) gained 6.32%, while 1inch Network (1INCH) gained 2.9%.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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