Matrixport View_Technology #10

Matrixport Research

Summary

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

Corporate

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

DeFi

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). ☆

CeFi

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

Disclaimer

Matrixport provides this analysis as general information only. Matrixport accepts no responsibility for the accuracy or completeness of any information herein contained and Matrixport shall not be responsible for any loss arising from any investment based on any forecast or other information herein contained. The contents of this materials should not be construed as an express or implied promise, guarantee or implication by Matrixport that the forecast information will eventuate. The cryptocurrency market is highly volatile. Buying, selling, holding, or investing in cryptocurrencies or related product carries various risks and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before participating in the cryptocurrency market. Matrixport is not acting as a financial adviser, consultant or fiduciary to you with respect to any information provided. Any information available here is “general” in nature and for informational purposes only.