Cardano Rumor Rundown July 2, 2021

Hey Everyone!

Let's go...

Newly covered today:

1. Coti update from Shahaf Bar-Geffen. https://twitter.com/COTInetwork/status/1410644013863124992
2. The Mithril paper (allows for trustless light wallets) is now available for your reading pleasure. https://iohk.io/en/research/library/papers/mithrilstake-based-threshold-multisignatures/
3. The Ouroboros Chronos paper (allows for the blockchain to be its own timekeeper) is also now available. https://iohk.io/en/research/library/papers/ouroboros-chronospermissionless-clock-synchronization-via-proof-of-stake/

Previously Covered but still interesting:

1. Manuel Chakravarty gave a big update on Hydra (layer 2 scaling). Hydra will not require that the base layer be modified since it will be implemented via Plutus smart contracts. Hydra is actually a collection of protocols including Hydra Head and Hydra Tail. Hydra Head is a symmetric protocol where multiple participants will be online simultaneously for the whole period of the head exchanging messages. Hydra Tail is an asymmetric protocol involving a high performance server and many clients that may be mobile and could be offline for large portions of the tail’s existence. There will also be “inter head & tail networking” which will allow for a network of heads and tails. They have a published research paper on Hydra Head. They are currently writing the Hydra Tail paper.
2. Hydra is distinguished from other layer 2 protocols by its isomorphic properties. This means you will be able to run any smart contract that works on the base layer in a Hydra Head! This is very special. We won’t need special purpose contracts built out just for layer 2. There are some big implications to this. Since a Hydra Head is essentially just a Plutus smart contract, this means you can run a Hydra Head inside another Hydra Head. It’s turtles all the way down, guys. It sounds like they can do this iteratively as much as they want.
3. Aggelos also gave a good presentation on the importance of “skin in the game” in resource based consensus protocols (both proof-of-work and proof-of-stake) and its effect on promotion or discouragement of centralization. He explained how Ouroboros has built-in safeguards to prevent centralization including the K parameter (currently at 500) which caps total rewards per pool and the alpha parameter (currently at 0.3) which splits rewards into a 77% piece and a 23% piece. A pool can take its share of the 77% piece based on the pool’s total stake and its share of the 23% piece based on the pledge of the SPO. A higher alpha parameter makes it less attractive for individual SPOs to proliferate multiple pools since they can’t be as leveraged on their available pledge and still get as big a share of the 23% piece. This also discourages Sybil Attacks. As Cardano on-chain governance progresses, these parameters will be controlled by the community.
4. There will be a Cardano Goguen Summit in September. It will be hybrid digital/in-person.
5. Charles is helping to bring the cryptographer who broke SHA-1 to the University of Wyoming. The Cardano funded blockchain lab there could be on the road to be a powerhouse. https://twitter.com/CaitlinLong_/status/1398290866419105802 https://en.wikipedia.org/wiki/Yiqun_Lisa_Yin
6. We don’t often get to hear from the engineers behind Yoroi over at Emurgo. But, here’s a podcast with Vicente Almonacid from Emurgo. Check out 12:50 where he mentions the dApp Connector (Cardano’s Metamask Equivalent). https://twitter.com/vacuumlabs/status/1397847633696280576
7. Check out this great article from Cardanians.io on the work being done at the University of Wyoming on a physical chip for transfer of private keys in day-to-day cashlike transactions. https://cardanians.io/en/cardano-can-give-crypto-a-cash-like-experience-58
8. Professor Aggelos Kiayias recently dropped a video explaining exactly how Mithril (apparently neckbeard dungeon master talk for elf armor) is going to allow for Perfect Cardano (ADA) wallets that combine the ease of use and convenience of light wallets with the trustlessness of full node wallets. We also learned exactly how Mithril is going to work. https://youtu.be/LhepJFCyWRk
9. In proof-of-work, bootstrapping can be done with blockheaders. This won’t do in proof-of-stake since we need information about stakeholder distribution to confirm block validity.
10. Mithril fixes this by being a cryptographic construction that enables a population of stakeholders to issue a signature consistent with certain constraints.
11. For Mithril to work in proof-of-stake, it needs three crucial properties: 1) it needs to enforce a threshold ratio of stakeholders before the signature is issued; 2) the pre-signature fragments must be independently verified and subject to public aggregation; and 3) it must be efficient in the sense that the final signature is of constant size and is logarithmically dependent on the # of stakeholders.
12. Stakeholders will issue special Mithril keys along with the normal cryptographic key material. Then at regular intervals, full nodes will test whether they can produce a pre-signature fragment. Only a random subset of stakeholders will be eligible to produce a pre-signature fragment. When a sufficient # of pre-signature fragments have been issued by eligible stakeholders then it will be possible to aggregate the fragments into a final signature.
13. This will be a checkpoint that will be verifiable with respect to previous check points all the way back to the genesis block. Such checkpoints will be cryptographic commitments of the relevant UTXOs.
14. Since the checkpoints will be trustless, a light client (i.e. wallet) will only need to verify the sequence of checkpoints up to the current time to trustlessly bootstrap.
15. The ecosystem is growing so fast, it’s hard to keep up with all the projects without these infographics at this point. https://twitter.com/Dr_shwetaPHD/status/1398783893638103040
16. The Cardano subreddit is at 487k users. Half a million isn’t far away. https://www.reddit.com/r/cardano/
17. Epoch 268 is a wrap as of yesterday with 22.83 billion ADA staked. https://adapools.org/epochs
18. Check out the telegram AMA tomorrow with the CEO of World Mobile! https://twitter.com/ZwijBerg/status/1399377659105320962
19. A very interesting stat on Cardano user growth. https://twitter.com/cex_io/status/1398959088684445699
20. Don’t forget, the Marlowe webinar is this Thursday! https://twitter.com/InputOutputHK/status/1399444331556225027
21. More and more people in the youtube sphere are jumping on the Cardano train. https://twitter.com/techleadhd/status/1399398373384351744
22. Reuters reports on an EU digital identity wallet project. https://www.reuters.com/business/finance/eu-step-up-digital-push-with-digital-identity-wallet-2021-06-01/?taid=60b6e171efd84f0001b64ae1&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter
23. The U.S. Currently has Issued Sanctions on Ethiopia, but they are not all-encompassing economic sanctions as with rogue nations, they have just barred entry into the U.S. for certain government personnel. https://www.nytimes.com/2021/05/24/world/africa/ethiopia-us-sanctions-tigray.html
24. Vitalik is saying it’s highly unlikely we see ETH 2.0 before late 2022. I’m guessing that means mid 2023 which will be after two years of Cardano slaughtering the entire ETH user base. Things are looking so bad that Vitalik says he doesn’t even like using the ETH 2.0 label anymore since he knows the changes will be more incremental. This is what early capitulation sounds like guys. https://cointelegraph.com/news/even-vitalik-buterin-is-surprised-at-just-how-long-eth2-is-taking
25. Cardano-Nervos cross-chain bridge to be built. This would be at least the second cross-chain bridge after the Cardano-AGI bridge. https://www.coindesk.com/cardano-nervos-force-bridge-network-first
26. Sundaeswap ISO delayed due to regulatory concerns. This brings up interesting questions for the whole space about requesting regulatory permission vs. possibly being forced to ask for forgiveness. https://www.sundaeswap.finance/posts/iso-update
27. Tim Harrison has announced that the transition to Alonzo Blue was successful. https://twitter.com/timbharrison/status/1400481879883649034
28. Finally, 500k users in the Cardano Subreddit! https://www.reddit.com/r/cardano/
29. We got a nice update on the first week of Alonzo Blue. https://twitter.com/InputOutputHK/status/1400876181122174977
30. And….still! Kings of the github! https://twitter.com/CryptoDiffer/status/1400744567956180993
31. Epoch 269 is in the bag with active stake of 22.77 Billion. Hope everyone made lots of delicious staking rewards! https://adapools.org/epochs
32. Binance has 63 stakepools charging 6%. Please stop paying so much for the right to stake your ADA. You don’t have to pay that much. You have a huge number of better options. You are literally giving away your ADA rewards to a large corporation. It’s easy: just download the Yoroi Chrome extension, send your ADA there, and pick from the 2k+ available stakepools right inside Yoroi. https://twitter.com/BraveHeartStak3/status/1401204563189940231 https://adapools.org/groups/binance-20 https://play.google.com/store/apps/details?id=com.emurgo&hl=en_US&gl=US
33. Nigeria Bans Twitter after Twitter censors Tweet from Nigerian President. This emphasizes the need for decentralized social media. A decentralized solution running on Cardano could fix this. https://www.cnn.com/2021/06/04/africa/nigeria-suspends-twitter-operations-intl/index.html https://www.youtube.com/watch?v=JilEb42q-CI
34. A Really Big Deal: El Salvador is on the verge of making Bitcoin legal tender in the Central American nation. https://www.youtube.com/watch?v=3uGOfqN2y9k
35. This could have huge ramifications for bank and accounting treatment of Bitcoin potentially including that banks might suddenly be allowed to handle Bitcoin as a foreign currency. Today it was BTC. But, wait until they find out what Cardano can do. https://twitter.com/CaitlinLong_/status/1401334421773504517
36. Nayib Bukele, President of El Salvador, also clarified that there will be no capital gains taxes on Bitcoin since it is a “legal currency” and crypto entrepreneurs will be given instant permanent residence. https://twitter.com/nayibbukele/status/1401622548396314631
37. Bitcoin enthusiasm seems to be off to a great start among other Latin American politicians after the fervor around the El Salvador announcement. This will serve as a great gateway drug that only leads to Gen 3 projects and Cardano. https://twitter.com/gilson__marques https://twitter.com/carlitosrejala https://twitter.com/gabrielsilva8_7/status/1401965129051389958 https://twitter.com/FabioOstermann
38. We are always the Github Kings. It’s amazing. https://twitter.com/CryptoIRELAND1/status/1402011593995603975
39. Charles basically just laid out what 4th Gen Cryptos are going to be all about in his video yesterday. https://www.youtube.com/watch?v=nkr1EKQrVeQ
40. Here’s a good Emurgo blog article on the use of Emurgo Trace in the Oil and gas industry. https://twitter.com/emurgo_io/status/1402339278097502210
41. IOHK gives us a closer look at everything being upgraded for Alonzo. https://iohk.io/en/blog/posts/2021/06/08/a-close-look-at-the-software-running-cardano/
42. We’re currently at 71.52% of ADA staked. This is a pretty incredible ratio and shows the strength of the Cardano community. https://twitter.com/CardanoPoolPeek/status/1402378400803794950
43. SEC Commissioner Hester Pierce warns about the regulatory impulse being displayed by her colleagues toward crypto and the impact it could have on the stifling of innovation. https://www.ft.com/content/ae0d40a1-8a4a-4885-a6a7-b157e27b3311
44. El Salvador passes the statute to make Bitcoin legal tender in the country. https://twitter.com/nayibbukele/status/1402827595339681794
45. Cardano gets more positive coverage on the Nasdaq website with a second article following the one from April 7 earlier this year. https://www.nasdaq.com/articles/be-part-of-a-historic-crypto-moment-with-cardano-2021-06-08
46. Prof. Aggelos Kiayias releases an article on a tri-coin system called Stablefees that could fix the problem of appreciating transaction fees in crypto. https://iohk.io/en/blog/posts/2021/06/10/stablefees-and-the-decentralized-reserve-system/
47. There’s very interesting speculation circulating out there about how El Salvador’s Bitcoin adoption might impact relationships with the U.S. and the IMF. https://twitter.com/cardano_whale/status/1403136968456765443
48. Elizabeth Warren is now talking about the U.S. needs to regulate crypto. https://twitter.com/BloombergTV/status/1402749016845262851
49. The mid-month Alonzo development update from IOHK is out. Alonzo blue is in full swing and they are working on “hello world round trips” going from the node to the ledger and back. Plutus Partners (third party functional dev firms) are working on different use cases ahead of the Alonzo launch. https://twitter.com/InputOutputHK/status/1403314932968574981
50. Miniswap gives us the dev perspective on why Cardano’s Plutus is such an improvement over Ethereum’s Solidity. https://twitter.com/MinswapDEX/status/1403411522110427137
51. Here’s a great ETH vs. Cardano DeFi project comparison infographic. https://twitter.com/Coin98Analytics/status/1403397242707320835
52. Charles recorded for the Lex Fridman Podcast. It went over five hours. This is a big deal given that Lex has 1.12 million subscribers and it’s closer to mainstream than a crypto audience. https://twitter.com/IOHK_Charles/status/1403498549300584448 https://www.youtube.com/user/lexfridman
53. The Marlowe Webinar with Shruti is now available on youtube. Very interesting discussion of DeFi in general and also specific topics like “deep interoperability” in DeFi. Cardano is obviously already doing the very involved thinking about the future of DeFi. https://youtu.be/vzsUSG5CSj0
54. John O’Connor recently tweeted about a day where he “wrote a letter to a president” and “found a million users to bring into Cardano”. Sounds like the Cardano train is rolling along as smoothly as ever in Africa. https://twitter.com/jjtoconnor/status/1402565547716399104
55. Zach Guzman and Mike Novogratz get an opportunity to prove once again how extremely threatened they are by the fact that they can’t frontrun Cardano at this point. https://twitter.com/IOHK_Charles/status/1404100510525841408
56. John O’Connor appeared on the Disrupt Network Podcast. bit.ly/3znqyB7
57. President of Tanzania calls on the central bank to prepare for the adoption of cryptocurrencies and blockchain technology. I wonder what crypto ecosystem already has experience working with an African government on a big crypto project and has partnered with a mobile company that is already bringing connectivity to rural Tanzania? https://twitter.com/DocumentingBTC/status/1404126444863766533
58. Hedgefund Billionaire Paul Tudor Jones tells the world to buy crypto and certain other assets if the Fed doesn’t address inflation in their policy meeting that concludes on Wednesday. JP Morgan’s Jamie Dimon concurs that the current inflation is very likely not transitory. This could be tremendously good timing for Cardano given our top five status and the impending mainnet launch of smart contracts. https://www.cnbc.com/2021/06/14/paul-tudor-jones-says-bet-heavily-on-every-inflation-trade-if-fed-keeps-ignoring-higher-prices.html https://www.cnbc.com/2021/06/14/jamie-dimon-jpmorgan-is-hoarding-cash-because-very-good-chance-inflation-here-to-stay.html
59. With exploits like this one being all too common in the legacy smart contract networks, we’re not even going to have sell the Cardano use case for DeFi. The competitor networks have already made the case that something better must be on the way. https://twitter.com/zapper_fi/status/1404429179794362369
60. World Mobile CEO tweets out a tantalizing response to the Tanzanian President’s call for her nation’s central bank to prepare for crypto. https://twitter.com/MrTelecoms/status/1404375153191141377
61. If you are new to Cardano and you would like to get a handle on the terminology involved in the ecosystem, you may want to check out these Cardano flashcards produced by Coconut Pool. https://twitter.com/coconut_pool/status/1403442954434269185
62. While renewable energy is certainly a wonderful thing, there may be a problem with your technology when your path to compete on clean energy consumption involves you talking about harnessing the power of a whole series of volcanoes. Maybe just use fewer volcano’s and more proof-of-stake? https://twitter.com/_eLaPs_/status/1404125569093029889 https://twitter.com/gladstein/status/1402718041557725184
63. The Charles/Lex Fridman podcast has dropped. This is a big deal. This is a fairly mainstream podcast with over 1 million subscribers. https://youtu.be/FKh8hjJNhWc
64. Politicians in the legislative branches of Panama and Paraguay have now announced intentions to introduce crypto-related bills into their respective legislative assemblies. https://twitter.com/gabrielsilva8_7/status/1401965129051389958
65. New algorithmic stablecoin paper coming in the next few weeks from IOHK. https://twitter.com/IOHK_Charles/status/1405737563030183936
66. The bank of England is getting very serious about how it “may wish to limit migration” of money from the legacy system to stablecoins. Wow. Just another example of why it’s such an asset (no pun intended) that Cardano is prepared for regulation. https://twitter.com/CaitlinLong_/status/1405712468823842816
67. Check out the newly “pimped up” Cardano documentation. https://twitter.com/theSavaSavic/status/1405526615585480730 https://docs.cardano.org/
68. The Cardano Development Update for this week is out. https://roadmap.cardano.org/en/status-updates/update/2021-06-18/
69. Runtime Verification (architects of K Framework which powers Cardano’s IELE & KEVM) just raised $5.3MM in a round that included Cardano’s C Fund. https://runtimeverification.com/blog/runtime-verification-raises-5-3-million-to-advance-blockchain-security https://twitter.com/RosuGrigore/status/1405917218035097600
70. It’s a good sign that the top two crypto communities are spending so much time talking negatively about Cardano. You only focus your hatred on that which is most threatening. I’m glad to see we’re the biggest threat on their radar. https://twitter.com/nic__carter/status/1405194146063736840
71. Bloomberg just published a piece called “America Should Become a Nation of Renters”. While this statement is probably extremely polarizing for Americans, it can also be argued that the death of homes as the primary investment vehicle of Americans may open up a new wave of adoption in crypto as an alternative. https://twitter.com/bopinion/status/1405609396302979074
72. Cardano 360 is this coming Thursday the 24th! https://twitter.com/InputOutputHK/status/1405067848452657153
73. It’s Project Catalyst voting time. You have until the 25th! https://twitter.com/InputOutputHK/status/1406213172781060097
74. We are crushing all the competitors in terms of assets staked! https://twitter.com/CryptoDiffer/status/1405854686209622018
75. All 345,501 of the people who have watched the Lex Fridman/Charles episode as of writing are realizing that Cardano could be the first project to put voting on the blockchain in a U.S. state. https://www.atalaprism.io/app
76. Don’t Forget Cardano 360 is this Thursday! https://twitter.com/InputOutputHK/status/1407035426267877385
77. Days like today in Cardano and the greater crypto space always reminds me that there have been other great adoption stories that went through periods like this.https://twitter.com/elonmusk/status/1407077949774442499
78. It looks like the second biggest ETH stakepool or it's custody provider has lost it’s users private keys to $75MM in ETH. Cardano doesn’t have this problem. We get to keep custody of our crypto because we found a better way than slashing. https://stakehound.com/blog-post/fireblocks-eth-2-key-management-incident/ https://twitter.com/JamesSpediacci/status/1407465311180255236
79. Draft table of contents for Mastering Cardano has been revealed. https://twitter.com/IOHK_Charles/status/1407165366355124225
80. Cardano 360 June Edition is Today! Watch it on youtube! https://twitter.com/InputOutputHK/status/1407629819941109760
81. COTI (a project with very close ties to Cardano) is coming to Ledger. https://medium.com/cotinetwork/coti-native-is-coming-to-ledger-c56b04df1253
82. The June Cardano 360 was yesterday. It is currently available on Youtube. https://youtu.be/al5m14299ww
83. We saw segments on various newer partner entities like Nervos, Orion Protocol, and Revuto. Nervos is a UTXO proof-of-work blockchain which is building a cross-chain bridge with Cardano so that you can use your ADA on Nervos dApps and vice versa. Interoperability is a big theme for Nervos and they plan to have a working testnet within a month. Orion Protocol is building a terminal that will allow for decentralized non-custodial trading across centralized and decentralized exchanges. They say this would not require you to KYC or even have an account with any of these exchanges. Revuto is an online subscription management service that recently completed a $10MM token sale on Cardano.
84. It was also revealed that Wolfram Labs, COTI, and IOHK have a three-way partnership (a ménage à tech) to build an NFT auction site. The people from Wolfram were talking about very interesting things including live minting during streaming events and automated upload to IPFS. COTI will be building out auction and bidding mechanisms in ADAPay.
85. Professor Aggelos Kiayias gave us an update on research including that Ouroboros Chronos and Hydra papers have both been accepted into conferences/journals. Chronos will provide Cardano with a global concept of time that doesn’t rely on any outside timekeeper. Prof. Kiayias also pointed out that Hydra is distinguishable from other layer two protocols in that the scripting language is identical to that of the base layer in Cardano such that any dApp that can run on Cardano will run on the Hydra L2. This is a huge plus and superior to many other layer two solutions in other ecosystems where the base layer dApps will not run on layer two. Finally, the Mithril paper has been submitted for peer review. It will provide Cardano light wallets with Succinct Non-interactive Arguments of Knowledge that will give us the best of both worlds: no delays for syncing as in full node wallets while still preserving trustlessness.
86. Finally, the Goguen Summit will be in late September. Sign up now at summit.cardano.org.
87. The Fed is once again STRONGLY signalling to us that they are going to regulate stablecoins. The Fed is also specifically calling out Tether for the first time. You need to be thinking about how stablecoin regulation might affect your favorite Cardano DeFi or other project. https://twitter.com/CaitlinLong_/status/1408500265397985282 https://twitter.com/CaitlinLong_/status/1408572624125534212
88. People are starting to realize that the Stakehound private key loss in ETH may attract unwanted regulatory attention to Ethereum 2.0 while this problem could never have occurred in Cardano. Also, only a few days later another ETH stakepool (this time SharedStake...the sixth biggest ETH Stakepool) allegedly experiences a rugpull that some are valuing at over $30MM. This is another problem that could not happen in Cardano staking. It feels like we stepped into the ring, they rang the bell, and ETH just started punching itself in the head. Eventually it’s going to KO itself. https://twitter.com/Madror7/status/1408505144984051716 https://twitter.com/JamesSpediacci/status/1407761823143645189 https://twitter.com/MeiTrades/status/1408117430656905219 https://sharedstake.medium.com/the-sharedstake-story-by-kairos-44d37aa7837a
89. Here’s another great Cardano data site. This one is from the Cardano Fans stakepool. https://datastudio.google.com/u/0/reporting/3136c55b-635e-4f46-8e4b-b8ab54f2d460/page/r2LQC
90. John O’Connor of IOHK points out that France still controls the monetary policy of 14 countries in Africa. There is definitely a built in market on the continent for a project that delivers monetary sovereignty to the people. https://twitter.com/jjtoconnor/status/1408978882129272832
91. Here’s a great new interview with the CEO of World Mobile from Cardano Chats. https://youtu.be/w0Z2RP6a9HE
92. New article from the Cardano Foundation on Governance. https://forum.cardano.org/t/blockchain-governance-what-it-is-and-why-it-matters/65493
93. Sebastien explains some Alonzo HFC event changes. https://twitter.com/SebastienGllmt/status/1409485560012414978
94. IOG Research update from Prof. Aggelos Kiayias. Really interesting bit right at the beginning on the history of cryptography as a field of study. https://www.youtube.com/watch?v=7UAL_6f7PFw
95. Sebastien of dcSpark submits a Cardano Improvement Proposal to allow wallets to implement collateral. https://twitter.com/SebastienGllmt/status/1409910858117877763
96. New Plutus Pioneers Class starting July 1! https://twitter.com/InputOutputHK/status/1409948543268409344
97. The Mithril paper is out and will be publicly available soon. Fast bootstrapping here we come! https://twitter.com/IOHK_Charles/status/1410277976730603526
98. Charles says it looks like we will hit Alonzo white on Monday. https://twitter.com/IOHK_Charles/status/1410279529021648896

~Army of Spies