English
52889
 "The Economist·Business Discourse" Subscribe now and get a customized version of "Daily Word Collection"! ” On September 15, the Ethereum blockchain officially completed its "merger", and the big news in the cryptocurrency community also attracted the attention of a large number of investors. Cryptocurrency prices have collapsed this year, but since the end of June, the price of ether has risen one after another, while the price of bitcoin, which has nearly halved, has barely recovered. Ethereum will transition from using the energy-intensive “proof-of-work” (PoW) as its consensus mechanism to the “proof-of-stake” (PoS) that uses a very small amount of energy. The successful merger shows that Ethereum has the ability to improve itself, which will also open the door to more deep changes in the cryptocurrency. The latest in-depth article of "The Economist Business Review" analyzes the cryptocurrency market before and after the transformation of Ethereum.  "The Economist·Business Theory" 2022-09-16 The future of crypto is at stake in Ethereum’s switch "Ethereum's transformation is related to the future of cryptocurrency" Cryptocurrency Ethereum’s Transformation After the Crash: Can the Future of Cryptocurrency Decentralized Networks Reinvent Itself? 【depth】 This isn't just a technical tweak. It's a complete overhaul of a seven-year-old, $200 billion software project. If all goes according to plan, the transformation will be completed without disrupting operations. The currency circle compares this process to an airplane replacing its engine in mid-air. PoW is extremely energy-intensive and requires a huge amount of computing power, causing the energy consumption of blockchains such as Ethereum and Bitcoin to be comparable to that of some small countries. The operation of PoS will reduce energy consumption by 99.9%. The impact on emissions would be as if all of Chile were shut down overnight (see chart 1). More importantly, if the merger is successful, it will demonstrate that Ethereum is capable of self-improvement, opening the door to more and more radical changes.  The cryptocurrency community needs good news because the past year has been very difficult. A number of cryptocurrency institutions that took customer deposits malfunctioned and closed down one after another, and people's savings invested in them were wiped out. A crypto hedge fund files for bankruptcy ； One stablecoin proved to be fundamentally unstable. The total market capitalization of cryptocurrencies has plummeted to around $1 trillion, down about $2 trillion from this time last year. Ethereum improvements will be powerless to undo any of this damage. However, by reducing cryptocurrency’s environmental impact and highlighting the potential for future improvements, it will show that its future is brighter than many currently believe. ... ... ...Not all interested parties support the merger. Miners have invested up to $5 billion in hardware to run the PoW consensus mechanism. Starting around September 15th, the hardware will no longer give them much bang for their buck. The way PoW maintains blockchain security is by motivating hundreds of thousands of computers to solve a mathematical problem. The computer that finds the answer first notifies the other miners, and once they confirm the result, they update the blockchain and receive their reward. Therefore, it pays to own a lot of mining hardware - which earns you glamorous, freshly minted Ethereum. PoS uses cryptocurrency holders to vote to make decisions about updating the blockchain. Voting rights, as well as reward shares, depend on how much ether is staked. ... ... ... Welcome to open the "Economist·Business Discuss" App and subscribe to read the in-depth article "Ethereum's transformation is related to the future of cryptocurrency" in full to learn more:
 "The Economist Business Review" 2022-07-06 Blockchain reaction "Blockchain reaction" Three Mechanisms of Blockchain-style Response to “Crypto Contagion” How to Understand Bitcoin’s Dilemma ... ...The risk of a new downward spiral still exists. Traders who didn’t get wiped out have managed to put up more collateral through DeFi (decentralized finance) lenders ； The threshold for triggering margin calls was briefly lowered. But data from the application Parsec Finance shows that the trigger threshold for Ethereum has risen again from $700 on June 20 to nearly $900 (at the time of writing, the price of Ethereum is $1,100). Recent events have also shown three weaknesses in cryptocurrencies that can magnify trouble, including unclear valuations, too close internal correlations and a lack of liquidity floors. The first is valuation. Some of the most actively traded crypto tokens are complex products, such as derivatives and “tokens” issued by DeFi platforms, without established valuation models. Trust in pricing can disappear in an instant due to lack of value anchoring ； The impact is amplified by lower trading volumes on weekends. Local problems in the cryptocurrency market may spread outward, and in particular may affect Bitcoin, the benchmark of the entire cryptoverse. The second contagion channel stems from the high correlation between DeFi platforms. This is partly the result of increased competition. After a period of explosive growth, funds invested in DeFi have declined over the past year. As cryptocurrency lenders compete to attract increasingly scarce funds, they promise savers higher and higher yields, which in turn leads them to invest user funds in riskier projects - often other platforms that lend money and generate returns. When the price of an asset falls, it triggers a cascade of reactions throughout the system. ... ... ... ... Welcome to open the "Economist Business Review" App and subscribe to read this article in full. Search "Bitcoin" in the app to get more forward-looking insights 🎉 Subscribe to "The Economist Business Review" now Enjoy multiple benefits now! 🎉 1. Official customized version of "Daily Word Collection": ✓Official translator compiled paper collection version of vocabulary manual ✓Selected 100 advanced vocabulary words from the original publication 2. Year-round business English learning community: ✓Official translator reads The Economist ✓Word of the Day + Learner Idioms + Translator Classroom Continuously Updated 3. Massive content of past issues of The Economist Business Review in both Chinese and English: ✓More than 3,000 bilingual articles + official translations ✓More than 10,000 minutes of BBC anchors reading the original text of The Economist ✓"The Economist" homemade bilingual documentary 4. Exclusive community for subscribers: ✓Daily push of selected articles by the editor➕interpretation by the editor ✓Communicate with the editor-in-chief of The Economist Business Review *How to join the group: complete the subscription - follow the WeChat service account of [Economist Global Business Review] and reply with the keyword "Subscriber Group" in the background - add a small assistant on WeChat and wait for review before being invited to join the exclusive group for subscribers of "The Economist Business Review" - get the latest content and event push  Click "Read the original text" to subscribe to "The Economist·Business Review" for the whole year↓ |
|
|
|
|
|
