ethereum eboda 775x500 - Ethereum Price Spikes; Though Tech Challenges Remain

Ethereum Price Spikes; Though Tech Challenges Remain

Ethereum prices are up over 13% over the last two days, after weeks of negative price pressure. The price boost came in part from an influx of trading volume—over $2 billion. Most of the trading volume came from USDT, though fiat pairings saw higher volumes as the price bounced.

The price saw a sustained downturn due to large-scale sell-offs of ETH acquired by companies during their ICO stages. ETH was traded for these early coins and is needed to continue business functions, forcing some projects to sell ETH for fiat as prices sunk.

Estimates are that the sell-off came to the tune of 160,000 ETH; but buyers may be using that opportunity to buy back into Ethereum. Still, the uptick could be short-lived. Analysts are showing a dip down from the last few days’ activities, and an ETH price that goes lower to a real support point around $183.


H&S – New entry point (short) Target: 183.5$ by AyKayCapital on TradingView.com

Still, Ethereum and its project owners have announced a deeper focus on the technical output and application of the smart contracts platform. For ETH to see prices it had earlier this year, it likely needs to solve some pressing technical issues.

Latest Developments on Ethereum

Prysmatic Labs, a group of blockchain experts, revealed the latest update about their open source sharding client for Ethereum 2.0’s ‘Casper’ update. Engineers were able to deal with some inefficiencies of cross-shard communication. Indeed, the team addressed the canonical ‘Hotel and Train Problem.’

Raul Jordan, one of the developers at Prysmatic Labs, commented during an interview:

“[Hotel and train problem] which is that if you book a train and you book a hotel, you want both to go through or none at all. You don’t want to end up stuck with the hotel going through, but not your train or the train going through and not your hotel.”

The developer explains that there is a possibility for the system to break down. That would happen if two transactions A and B do not go through together. If one goes and the other not, the whole system may break down.

One of the solutions proposed for this problem was the ‘Cross-shard contract yanking.’ Vitalik Buterin himself explained how this proposal works.

Nonetheless, the team found that the solution proposed by Vitalik Buterin was imperfect to accommodate latencies. Buterin has also said that in order to achieve a single cross-shared communication transaction, data and state should be separated. There is a possibility to experience a block reorganization.

The team behind Prysmatic Labs explained that they are at the crossroads of all these important considerations.

The team has also commented on the GitHub pull requests, merged codes and other issues. Moreover, they mentioned how they elaborated a solution for Beacon nodes to bootstrap from a genesis state.

Beacon nodes have been developed by Prysmatic Lab as random sidechains. They store hashes to main chain blocks but in their own blocks. The sidechain will be implementing a full ‘Proof of Stake.’

The team has also stated that a Direct Acyclic Graph (DAG) will be storing the information of incoming blocks and their state.

“Nishant Das from our team then took the initiative to improve the system and instead store all processed, incoming blocks into persistent storage and only keep a simple, in-memory slice of block hashes we have yet to process for the latest slot number and then apply for the fork choice rule easily,” reads the report.

In the future, the team will be working in the implementation of a Peer to peer message interaction between validators. In this way, they would be able to exchange information between them. In addition to it, they will be working on the Beacon Chain from Genesis without using a simulator.

 

 

Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

 

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