Matrixport View_Technology #10

Matrixport Research


  • The first phase of ETH 2.0 has arrived with the beacon chain launching on 1st December. The beacon chain is not fully functional and will slowly add additional features with the future releases and phases. ETH holders can convert their ETH to ETH2 and lock it up to earn a portion of the block rewards from ETH 2.0.

  • Bitcoin Cash welcomes its first DeFi protocol, Detoken. Using Anyhedge, the protocol allows users to create smart contracts, allow support for SLP token, zero-confirmation trades and atomic swaps. New functions are expected to be rolled out in 2021.

  • There have been on-going security breaches occurring across the entire ecosystem.

Public Blockchain: Mainstream Tokens

ETH 2.0’s Beacon Chain Goes Live

Beacon Chain Launch ☆☆☆

  • On 1st Dec 2020, ETH 2.0 phase 0 proof-of-stake chain went live, marking the beginning of the process of transiting to ETH 2.0

  • The network is currently not fully functional until further upgrades are completed in 2021

  • The current beacon chain is unable to handle accounts or smart contracts, instead it offers proof of stake, where ETH holders can convert their ETH to ETH2 and lock up it to earn a portion of the block rewards

  • Based on early estimates, ETH phase 1.5 should arrive by 2021/2022, where the ETH 1.0 and ETH 2.0 chains will merge to form a combined blockchain

First DeFi Protocol Launched on Bitcoin Cash

Beta Version Launch ☆☆☆

  • The first ever Bitcoin Cash based DeFi protocol, Detoken, is slated to be launched by Jan 2021

  • Using Anyhedge, an open source protocol that enables users to create a specific type of smart contract, Detoken allows SLP token support and zero-confirmation trades to occur

  • In addition, the protocol aims to combine atomic swaps with Detoken to provide trustless and noncustodial trades to be accomplished while users have full control of their private keys

Public Blockchain: Others

Cosmos Announced the IBC1.0 Implementation Release Candidate

Candidate Launch ☆☆

  • Cosmos released its candidate version of IBC 1.0 that includes many features such as asynchronous acknowledgements, height abstraction and upgrade support, governance-based client recovery and cross-chain transfer denomination tracking

  • In addition, Cosmos completed its Stargate upgrade on its Cosmos Hub, where anyone can create IBC clients, connections and channels

  • However, the latest upgrade did not include transferring tokens to and from the Hub using IBC’s fungible token transfer protocols, users still must use second parameter change proposals to activate cross-chain transfers

Blockchain Adoption in Traditional Industries


  • After the ban by Visa and Mastercard, Pornhub announced that it was only accepting crypto payment for its premium services. Pornhub accepts a range of cryptos including Tron, Tether, Bitcoin, Bitcoin Cash, Ethererum and other tokens. (Adoption of Digital Currency ☆)

Security Incidents


  • The account of Hugh Karp, the founder of Nexus Mutual, was hacked where 370,000 NXM tokens (valued at $8m) was transferred to an unknown account. Hackers obtained remote control of Hugh’s personal computer and modified the Metamask extension used on the computer, misleading Hugh to sign the transaction. ☆

  • DeFi protocol Warp Finance was exploited for $7.7 million in a flash loan attack. The project has recovered $5.5m and refunded affected users. For the remaining $2.2 million, Warp Finance said it will compensate the victims over time. ☆

  • DeFi insurance project Cover protocol briefly suffered losses when an unknown attacker minted over 40 quintillion Cover tokens. However, after successfully cashing out tokens worth about $5 million, the attacker unexpectedly returned ether tokens valued at about $3.2 million before leaving a message for the Cover team. ☆

Public Blockchain

  • The Aeternity blockchain fell victim to a 51% attack, causing a loss of more than 39 million AE tokens (valued at $5m). ☆


  • Cryptocurrency exchange EXMO said an estimated $4 million of the cryptocurrency (6% of its total crypto) stolen during a hack through the exchange Poloniex. The exchange said assets cannot be recovered by EXMO due to criminals withdrawing the funds through Poloniex. ☆☆

  • Russian cryptocurrency exchange Livecoin announced that it was hacked and lost control of some of its servers. Livecoin warned its customers to stop using its services until further notice. The hackers took control of the Livecoin infrastructure and then proceeded to modify the exchange rates to gigantic and unrealistic values. Once the exchange rates were modified, the mysterious attackers began cashing out accounts, generating gigantic profits. ☆

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

Sources: dAppradar, Certik, Coinness, Chainnews, Decrypt, Bitcoin News, Coindesk, Zdnetanalyze by Matrixport


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