Ethereum blockchain was used by an Australian bank to create its own stablecoin

Launch of a new cryptocurrency, attached to Australian dollar exchange rate on Ethereum blockchain, scheduled for mid-2023. Crypto-Upvotes expert review

National Australia Bank (NAB), one of four major Australian banks, has created an AUDN stablecoin on the Ethereum blockchain. It will be attached to the rate of Australian dollar (AUD), according to Australian Financial Review. Banks plan to launch this coin in mid-2023.

The goal of creating AUDN is to allow bank customers to make real-time blockchain-based settlements in Australian dollars, the NAB said. AUDN can also be used for a number of other purposes, including carbon credit trading and repo transactions.

NAB also intends to use AUDN for low-cost international transfers. According to the bank, the technology will avoid using the SWIFT system. And reduce dependence on complex and costly relationships with correspondent banks when sending money abroad.

For at least three months AUDN will not be available to customers. Because while the bank under the supervision of regulators is conducting internal testing. Including transfers between subsidiaries and branches.

AUDN is not the first stablecoin to be pegged to the Australian dollar. 9 months earlier, Australia-New Zealand banking group ANZ Bank issued the A$DC (“A dollar DC”) coin. Also Novatti payment system created the AUDD stablecoin on Stellar blockchain. And Ettle has launched AUDE token on Ethereum and Algorand.

There are also stablecoins linked to Australian dollar exchange rates such as AUDT, XAUD, AUDRamp and TrueAUD. Volumes of these cryptocurrencies are minimal.

Last month, Reserve Bank of Australia Governor Philip Lowe said that regulating stable coins should be a priority and should be treated the same as bank deposits. Our experts note that Australia is also actively developing legislation and introducing technology for other digital assets. For example, in the middle of last year, Australian Gold Coast Mayor Tom Tate proposed accepting cryptocurrency in payment of municipal taxes.

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ENS registrar reported that more 2.2 million .eth domains created in 2022

ENS registrar reported that more than 80% of all addresses appeared in the past year. Crypto-Upvotes expert review

Last year, users registered more than 2.2 million addresses in the Ethereum Name System (ENS). This was reported by representatives of the ENS registrar in its official Twitter account. According to ENS Domains website, the number of .eth addresses exceeds 594,000.

Vitalik Buterin, co-founder of the Ethereum ecosystem, called ENS-domains the most successful application of NFT technology in an interview with WIRED.

An ENS domain is technically an NFT on a particular wallet. To make a transfer to this wallet, you can specify not its address in the usual format. And replace it with a conveniently readable address such as “vitalik.eth”. Such a wallet address can also be used for authorization in decentralized applications (dApps) and searches in blockchain browsers such as Etherscan.

Domains in the form of NFTs can be traded on leading marketplaces such as Looks Rare or OpenSea. However, the largest marketplace by volume is ENS.Vision, which specializes in ENS domains. According to the platform, the most expensive addresses were “333.eth” and “metaverse.eth,” sold for 100 and 99 ETH, respectively.

Domains are becoming a form of identification in the crypto community. And this provokes demand for short and easily recognizable addresses. Floor price for domains in the “999 Club” category, that is, three digit addresses consisting of numbers, is at 20.22 ETH.

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Visa has developed an autopay solution on Ethereum blockchain

Visa is using a proposal from Ethereum developers. It will allow automatic pre-scheduled payments from non-custodial crypto wallets

Visa has developed a blockchain-based autopay solution. A document published by this company details a new concept based on Account Abstraction (AA) technology from Ethereum developers. It will allow the implementation of automatic pre-planned payments using smart contracts in non-custodial users’ wallets.

Account Abstraction technology was proposed back in 2016. Since the core Ethereum network does not yet support AA. Therefore, VISA implemented its solution in StarkNet, a second-tier blockchain built on top of Ethereum blockchain. The account model in StarkNet just uses AA technology.

Whereas normal accounts check if a transaction is correctly signed for a specific address. With StarkNet, they simply verify that the transaction is coming from a given address. In addition, the introduction of Visa’s concept into this blockchain has not only enabled the deployment of a new auto-payment feature. But also increased transaction throughput.

Visa notes that it sees autopay as a key functionality that the existing blockchain infrastructure lacks. And it invites interested companies working in this area to work together on projects in the field of programmable payments.

Our experts note that payment companies from traditional financial industry this year began to actively develop projects related to blockchain and cryptocurrency. Also at the end of September, SWIFT and Chainlink oracle network announced joint work on a blockchain project. This project will allow traditional financial companies to conduct transactions on a platform that supports almost all blockchains.

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DeFi platforms increased profits amidst FTX collapse

Daily futures trading volume on DeFi platforms reached $5 billion. This is the biggest amount since Terra collapsed in May of this year. Crypto-Upvotes expert review.

DeFi platforms increased revenues amid the outflow of funds from centralized exchanges that occurred due to the collapse of FTX. On-chain data showed an increase in activity on decentralized futures trading platforms and an increase in revenue for DeFi protocols, Cointelegraph reported.

However, not all decentralized applications (DApps) and protocols show such a trend. Because some of them have financial ties to FTX and Alameda. But data on DeFi projects’ revenues show that at least three protocols have exceeded $1 million in the last seven days, including Ethereum and OpenSea Marketplace.

Decentralized futures trading platforms have increased their trading volumes to record levels. Their daily turnover reached $5 billion, the highest since the Terra token crash in May of this year.

Despite the increase in trading volume, the total value of locked-in assets (TVL) at DeFi only increased at seven networks. Gains Network, a futures trading platform on the Polygon network, showed the biggest increase. Its TVL increased 17.3% over the week. And inter-network protocol Ren saw its TVL drop by 50%. This is because Ren worked closely with Alameda. And received quarterly funding and stored its funds directly on FTX.

Blockchain’s profit growth comes on top of an unchanged number of daily active users. Compared to previous weeks, the daily profits of leading blockchains have increased by more than 300%. This suggests that transactions among existing users are occurring more frequently.

Despite growth in profits, only Ethereum made profits among PoS-based blockchains. Other leading networks such as Polygon, BNB Smart Chain and Optimism did not profit. Holders of these tokens suffered inflationary losses.

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The U.S. dollar collapsed against euros. How is this linked to the rise of Bitcoin?

Our Crypto-Upvotes experts discussed how US dollar affects cryptocurrency market. And gave predictions about the further movement of leading cryptocurrencies

Bitcoin rate rose from $19.5 ths. to $21 ths. per day. Ethereum rose by 13% and passed the mark of $1.5 ths. Among the top 30 cryptocurrencies by capitalization, all coins, except stabelcoins, increased in value. Market capitalization of entire digital currencies market showed growth of 6.9% and exceeded $1.047 billion.

At the same time, the US dollar collapsed against the euro on Forex market to its lowest level in five weeks. For the first time in this time, the U.S. currency became cheaper than euro. Dollar index (DXY) is also near a three-week low.

Impact of dollar index on cryptocurrency rates

How Bitcoin and the crypto market in general behave is influenced by the U.S. Dollar Index. Our expert explained that the DXY index (U.S. Dollar Index) shows the dynamics of the dollar against a basket of major world currencies. Such as : Euro, Swiss Franc, Pound Sterling, Canadian Dollar, Japanese Yen and the Swedish Krona.

Thus, the index shows the growth or decline of the U.S. dollar relative to a basket of currencies. When the index goes up, Bitcoin usually goes down. And when the index falls, Bitcoin goes up. This inverse correlation between the dollar index and Bitcoin was noticed a decade ago, and has been confirmed constantly since then.

Now Bitcoin’s rise above the $20,000 mark is due to the DXY index going down. The reason for this is the release of good reports by IT giants. As well as relatively positive data on the US labor market. And investors’ hopes that this information will lead FED to stop raising the rate.

Short-term strengthening of BTC or not?

However, despite some slowdown in U.S. inflation. The Fed will continue to tighten monetary policy. According to our expert, there is now too big a gap between inflation and the rate. Therefore, there is no reason to expect a strong slowdown in prices.

As early as next week at the meeting, Fed policymakers may raise the rate again by 75 bps (0.75%) to 4%. If FED declares that this trend will continue in the coming months, then today’s rate rally will be crossed out and sent to the trash garbage can.

According to our expert, we should expect in this case a new decrease of Bitcoin to the area of $15 thousand or even lower. Ethereum may go down to $1,000.

Under current conditions, cryptocurrency investors can liquidate futures positions. And make a profit by simply locking in profits on buy trades. Because there is no certainty that the current growth trend will continue now. Most likely, in the coming days it will be possible to observe the development of demand for the US dollar again.

What are prospects for growth of BTC?

Most likely, the trend of declining cryptocurrency rates may begin to change only in the first half of 2023. According to our expert, that is when the process of Fed’s monetary policy tightening may end. Or the step of rate increase will not exceed 0.25%. Then stock markets will start to form trends on increase of quotations. And on cryptocurrency market too, it will happen.

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Bitcoin has made it into Guinness Book of World Records

BTC has been written into history of world achievement Guinness Book of World Records on several counts, Crypto-Upvotes experts review

Bitcoin has been listed in Guinness World Records, the latest edition of Guinness World Records 2023. BTC is listed as the oldest cryptocurrency. And also as the first decentralized cryptocurrency and the most expensive cryptocurrency.

The latest of these records was recorded on March 24, 2022. On that day, Bitcoin was worth $42,900 and had a market capitalization of $816 billion. In addition, several other records related to BTC can be found in the book. For example: the largest theft of a cryptocurrency or the world’s first confiscation of a cryptocurrency. And even the largest cryptocurrency poker win ($1 billion).

There are also many NFT-related entries in the Record Book now. Among them is the very first unique Quantum token created in 2014. Or the most expensive token from NFT collections – CRYPTOPUNK #5822, bought for $23 million. And also the most expensive NFT issued by a sports club – Manchester City (UK) tokens with a market capitalization of $47 million.

Ethereum also appeared in the Guinness Book of World Records. However, ETH is not marked by any record. It is mentioned in an article about the first NFT Terra Nullius released on this blockchain in 2015.

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Ethereum validators started rejecting most Tornado Cash transactions

Tornado Cash is under attack again. Most MEV bots do not handle addresses of this service.

Ethereum validators have begun rejecting most transactions related to the Tornado Cash service. As well as addresses on the U.S. Office of Foreign Assets Control (OFAC) sanctions list. So according to the MEV Watch tool from blockchain company Labrys. About 52% of blocks on the Ethereum network are validated through MEV bots that comply with U.S. sanctions. Another 6% of validators use bots that do not enforce sanctions. And about 42% of nodes on the network do not use such programs.

MEV bots are centralized software designed to extract maximum extractable value (MEV). Such software has become popular among validators because it efficiently selects those transactions that can generate the most profit.

MEV Watch shows which bots have been adhering to OFAC sanctions since Ethereum switched to Proof-of-Stake. These bots “discard” blocks with transactions associated with sub-sanctioned addresses. And this leads to an inability to put these transactions into the blockchain, no matter how high the fee would be.

According to platform data, there are currently 7 popular MEV bots. They are: Flashbots, BloXroute Max Profit, BloXroute Ethical, BloXroute Regulated, BlockNative, Manifold and Eden. Of those, only 3 do not censor transactions as required by OFAC. They are: BloXroute Max Profit, BloxRoute Ethical and Manifold.

Remember that on August 8, the U.S. Treasury Department published an update to the sanctions list (SDN). They included Tornado Cash cryptocurrency protocol and associated digital wallet addresses. The reason for blocking was that this service is used by hackers to launder illicit proceeds.

The attack on confidential Tornado Cash service continues. Our experts believe that in the near future the pressure on this service will only grow. We hope that they will be able to withstand all these blows.

 

 

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BNY Mellon, oldest bank in the U.S., offers storage services for BTC and ETH

BNY Mellon licensed from New York state regulator to handle two cryptocurrencies. Review by Crypto-Upvotes experts

The oldest U.S. bank BNY Mellon began to provide services for cryptocurrency storage, writes The Wall Street Journal. For this purpose, the company received a license from the financial regulator of New York.

Bank will store the keys needed to access and transfer the cryptocurrency. It will also provide accounting services for Bitcoin and Ethereum.

BNY Mellon claims to be the first of eight systemically important U.S. banks to provide custody services for digital currencies. And it allows customers to use one custody platform for both traditional and cryptocurrency assets.

The platform will go live with select investment-fund firms this week. The bank said it expects to expand its crypto custody offerings to additional clients in the future, pending regulatory approvals.

In the summer of 2021, BNY  joined a group of six banks that plan to launch Pure Digital, a digital asset trading platform. At the time, the bank said it would roll out cryptocurrency infrastructure as the legal and regulatory framework emerged.

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First hack on Ethereum PoW hardfork results in $1k loss, Crypto-Upvotes expert review

A hacker took advantage of a vulnerability in OmniBridge protocol. Hacked and withdrew funds from it in new Ethereum PoW network tokens

The first hack of a smart contract in the new Ethereum PoW network brought a scammer 200 ETHW (about $1,000). Theft of funds was possible because OmniBridge protocol (a bridge to transfer funds between different blockchains) in PoW network. He received a second message about transaction already made in Ethereum network. This was reported on Twitter by BlockSec, a cybersecurity company.

On morning of September 15, The Merge update took place on Ethereum’s main network. It switched altcoin from Proof-of-Work protocol to Proof-of-Stake (PoS). The token of the old version of this network received symbol ETHW.

On September 18, a scammer transferred 200 WETH via the OmniBridge protocol of Ethereum blockchain to Gnosis network. And then he repeated the same transaction message on the new PoW blockchain. To get 200 ETHW from a copy of the OmniBridge smart contract on this network.

Our experts explained that this attack was made possible by a vulnerability in the OmniBridge smart contract. It uses an incorrect unique blockchain identifier. The OmniBridge smart contract mixed up the networks and mistakenly paid a scammer.

The Ethereum PoW network itself was not hacked. The stolen funds belonged to the OmniBridge protocol. However, our experts warn a crypto community. That similar attacks using PoW blockchain and ETHW tokens can happen to other interconnect bridges.

ETHW rate has been falling on centralized exchanges since the start of hardfork. But its price in the old version of the network rose on Friday September 16 to 16,400 USDT on decentralized exchanges.

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SEC says all Ethereum transactions fall under U.S. jurisdiction, Crypto-Upvotes expert review

SEC filed a lawsuit against Ian Balina, a famous member of cryptocurrency community. The lawsuit states that all Ethereum blockchain transactions take place in USA territory

The Securities and Exchange Commission (SEC) claims that transactions on Ethereum are made in United States. Because blockchain validators (network nodes) are clustered more tightly in the United States than in any other country. This claim was made in a lawsuit against famous member of cryptocurrency community Ian Balina.

The lawsuit was filed Monday, Sept. 19. Balina is accused of breaking law while promoting Sparkster Cryptocurrency ICO (SPRK) in 2018. Which raised about $30 million from 4,000 investors.

This is not the first time the agency has initiated such litigation. However, paragraph 69 of this lawsuit states : ” At that point, their ETH contributions were validated by a network of nodes on the Ethereum blockchain,
which are clustered more densely in the United States than in any other country. As a result, those
transactions took place in the United States.”

According to Etherscan, more than 46% of all Ethereum nodes are now operating in the US.

What this means for Ethereum

Our experts think that mentions of transaction processing by US-based nodes in a lawsuit against blogger Ian Balina. It can also be interpreted as the SEC  attempt to extend its jurisdiction over any transactions in Ethereum network according to geographical principle. And in the future, this could become a precedent and reinforce the current fears of transaction censorship. Which have arisen since sanctions were imposed on Tornado Cash mixer.

Following the Ethereum move to Proof-of-Stake. And given its high level of centralization, Coinbase, Kraken and Binance are estimated by Nansen to account for 30.25% of ETH blocked in stacking. The U.S. government could seriously consider bringing this space under its control.

In future case law, similar lawsuits from the SEC may await other cryptocurrencies. Which work on the Proof-of-Stake algorithm.

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