Alloy Insights Reading List #7

paul faecks
Reading List
Has Proof of Stake Made Ethereum More Centralized?

Following last week's discussion on Flashbots' MEV-Boost relay now accounting for just under 40% of all blocks on Ethereum and Lido controlling around 30% of ETH2 staking deposits, centralization of Ethereum under PoS is a warranted concern. This is a great discussion on centralization fears for Ethereum and why they might be overblown.

Has Proof of Stake Made Ethereum More Centralized? - Decrypt 

Danksharding: Ethereum’s Scalability Killer

This excellent research note by TheTie is an exploration of using Darksharding for enhanced throughput and improved scalability of blockchains. Sharding is the process of splitting a database horizontally to spread the load. Basically, by distributing the data amongst many machines, the system can handle larger amounts of data. Sharding is not a novel idea, and in fact has been in use for years. Danksharding is designed to circumvent MEV, therefore maximizing decentralization and security. For a more detailed explanation, see below:

https://research.thetie.io/danksharding-ethereums-scalability-killer-post-merge/ 

Relevant News
Lido launches support for staked ETH on Layer 2 Chains

Lido’s staked ETH (stETH) token can now be wrapped into Arbitrum and Optimism Layer 2 networks, as wrapped staked ETH (wstETH). The staking protocol will incentivize users to transact with wstETH with a monthly 150,000 LDO token reward pool that will be allocated across partnered DeFi networks.

https://www.theblock.co/post/175594/lido-launches-support-for-staked-eth-on-layer-2-integrations 

EU Seals Text of Landmark Crypto Law MiCA, Fund Transfer Rules

Last Wednesday, members of the EU Council signed off on the final version of MiCa regulation most notably regulating transfers of digital assets. MiCA introduces the first-ever licensing regime for crypto wallets and exchanges to operate across the bloc and imposes reserve requirements on stablecoins that are intended to avoid Terra-style collapses. A separate law on funds transfers requires wallet providers to check their customer's identity, in a bid to cut money laundering. Moody's Global Head of DeFi and Digital Assets argues that "the new rules could potentially boost stablecoin innovation in the EU".

https://www.coindesk.com/policy/2022/10/05/eu-seals-text-of-landmark-crypto-law-mica-fund-transfer-rules/ 

Huobi Founder Sells Bitcoin Exchange to Hong Kong Investment Firm

Leon Li Lin, the Chinese founder of Seychelles-based crypto exchange Huobi Global, is selling his controlling stake to a Hong Kong investment firm called About Capital, according to a blog post today on Huobi’s website. 

https://decrypt.co/111510/huobi-founder-sells-bitcoin-exchange-to-hong-kong-investment-firm 

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