Matrixport View_Technology #4

Matrixport Research


  • Progress towards ETH 2.0 continues to speed up as multiple testnets were launched in June 2020. Multi-client “Altona Testnet” and Prysmatic Labs’ “Onyx Testnet” aim to test multiple features and compatibility, the latest steps in pursuit of ETH 2.0.

  • Regarding the issue of BCH Difficulty Adjustment Algorithm, the BCHN project team held an online discussion to debate on the problem and proposed 2 potential solutions. The solutions aim to reduce the variance in block production time and stabilize the network.

  • As part of its TRON 4.0 launch, TRON Foundation introduced its TRONZ Smart Contract Privacy Protocol, allowing users of the TRON blockchain to process transaction anonymously.

  • Other key updates include: 1) Litecoin making progress in its goal to implement Mimblewimble transactions in its blockchain, 2) Polkadot switching from its centralized PoA consensus algorithm to a decentralized NPoS consensus algorithm, 3) Filecoin launching its final incentivized testnet before the launch of its upcoming mainnet.

  • There has been a significant security hack on Balancer, where 500k USD worth of ERC-20 tokens were stolen from the DeFi liquidity provider.

Public Blockchain: Mainstream Tokens

Launch of “Altona Testnet”, the Latest Step Toward ETH 2.0

Testnet Launch☆☆☆

  • Altona v0.12, a multi-client testnet, was launched, with four different constituent client teams testing and controlling the entire network

  • Altona is a developer-oriented testnet that aims to demonstrate that the clients involved are willing to support the mainnet of the Beacon chain (Beacon chain is a PoS blockchain that runs separate but connected chain beside the existing ETH blockchain. It is part of phase 0 of the official ETH 2.0 roadmap)

  • Should Altona go according to the roadmap, a public testnet will be launched and the Ethereum 2.0 mainnet, the Beacon Chain will be deployed

Prysmatic Labs Unveil “Onyx Testnet” for ETH 2.0

Testnet Launch☆☆

  • Prysmatic Labs announced the launch of the new and improved testnet for Ethereum 2.0 Phase 0: The Onyx Test Network, which is the next iteration of the previous Topaz testnet

  • The new testnet offers several key improvements over the previous iteration: 1) Revamped p2p message handling allowing for better handling of attestation subnets 2) Alignment to latest specification for ETH 2.0 to allow for multi-client compatibility

  • There are currently 245 active validator nodes on the Onyx

Discussion Held to Improve the BCH Difficulty Adjustment Algorithm


  • Developers behind the Bitcoin Cash Node project held an online discussion on methods to improve the BCH difficulty adjustment algorithm and reduce the variance in block production time

  • Two methods were suggested by the developer team: 1) EMA, where the method uses a moving average to smooth the variance in block production time, thus reducing the impact of institutional mining pool on the speed of block production, 2) ASERT, using a ratio of the expected to the observed solve time distribution, it adjusts the solve time and provides a smoothing factor to stabilize the block production time

  • As BCH has a relatively lower hashrate, both suggestions will minimize the difference in profits between institutional mining pools and normal miners, thus reducing the incentive for mining pools to manipulate the difficulty

Tron Launches its Smart Contract Privacy Protocolm

Mainnet Update Proposal ☆☆☆

  • As part of TRON 4.0 7th July mainnet launch, TRON Foundation introduced TRONZ Smart Contract Privacy Protocol, an added security feature on the TRON network

  • The protocol uses privacy features called zk-SNARKS and is the first smart contract privacy protocol that is supported by a virtual machine, allowing transactions to be processed anonymously

  • The protocol is a standalone feature on the TRON blockchain and will not be applied to routine TRX transactions due to regulatory requirements on privacy

Public Blockchain: Others

Litecoin Blockchain Will Allow for Mimblewimble Transactions in The Future

Code Update☆☆

  • By invitation from Litecoin, David Burkett (the founder of Grin), helped to complete the implementation for the “AcceptBlock” and “ConnectBlock” integration logic, allowing Mimblewimble blocks to be validated and added to Litecoin blockchain

  • There is further work being done on the mempool logic, in order to enable miners to mine Mimblewimble blocks and allow users to test the end-to-end flow of including Mimblewimble transactions in a block

  • A tentative date of September is set for the testnet launch

Polkadot Officially Switched to NPoS Network

Consensus Update☆☆

  • On 18th June, the NPoS network went live on Polkadot, taking a step towards decentralizing the network by increasing the active validator set from 20 to 100 active community validator nodes

  • In the NPoS phase, Web3 Foundation (the founding team of Polkadot) will relinquish the network to a set decentralized validator nodes as it switches from PoA (nodes where operated by Web3) to NPoS (nodes run by community validators)

  • The number of validator nodes will continue to increase as Web3 continues to approve more applicants

Filecoin Prepares for Network Launch with Final Testing Phase

Testnet Launch☆☆

  • Filecoin launched its “incentivized testnet”, the final testing phase before the mainnet launch

  • During this period, the top 100 miners globally, as well as the top 50 miners from each continent, may expect to earn Filecoin rewards based on how much storage they dedicate to the network combined with how much storage the network achieves during the test period

  • The testnet is designed to educate and reward the community, test the protocol’s Proof of Replication consensus mechanism, and prepare the entire network for its mainnet launch this summer

dApp and Layer 2 Updates


  • DeversiFi 2.0 DEX integrates Starkware’s zkSTARK layer-2 scaling solution that utilizes Zero Knowledge Proof technology, bringing high-speed trading, instant settlement, and withdrawal certainty. The new platform will be able to process over 9,000 transactions per second, while maintaining privacy, liquidity and low fees in a non-custodial solution. (DEX; Platform update ☆☆)

  • Compound governance token, COMP, has started trading on Uniswap after the protocol started distributing COMP to users. Per the distribution schedule, around 2,880 COMP will be distributed daily across the eight lending markets on Compound, the amount of COMP each market receives will be proportional to the interest accrued in the respective market. (Defi; Token launch ☆)

Layer 2

  • Ethereum research group Matter Labs has deployed its zkRollup-based Layer 2 scaling tool, called zkSync, on the Ethereum mainnet. zkSync paves the way for larger transaction volumes, less network pressure, lower transaction fees and maximum throughput of 2,000 transactions per second. For now, the main functionality available via zkSync is token transfer, where users can connect their existing Ethereum wallets with zkSync to deposit, transfer, and withdraw tokens. (Ethereum; Scaling tool launch ☆☆)

Blockchain Adoption in Traditional Industries

Financial Industry

  • Lithuania’s central bank is trailing its Central Bank Digital Currency (CBDC), issuing “LBCoin” tokens, a commemorative digital token on the NEM Blockchain. “LBCoin” tokens are exchangeable for physical legal tender and it is the first step in Lithuania’s blockchain adoption. (CBDC; Prototype launch ☆)

  • Signature Bank has partnered with Tokensoft, a digital securities platform, to launch a real estate security token platform for real estate investors. The partnership also provides custody of US dollars and real-time transfer of dollars through the bank’s blockchain-based payments platform, Signet. (Security token; Partnership achieved ☆☆)

  • Bank of Thailand, Thailand’s central bank, announced its plans to start developing a CBDC prototype for business in July. The prototype is based on Project Inthanon, a distributed ledger project initiated by Bank of Thailand in collaboration with Thailand’s top eight commercial bank. (CBDC; Prototype launch ☆)

Security Incidents


  • More than 500K USD worth of ERC-20 tokens was hacked from DeFi liquidity provider Balancer. ☆☆

Importance level:low-☆; medium-☆☆; high-☆☆☆

Sources: Coindesk, Tron’s web, Cointelegraph, FinanceMagnates, BTCManager, Polkadot’s web, The Block, analyzed by Matrixport


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