Istanbul Hardfork May Harm Aragon & Kyber Network

CTO of Aragon one believes says that upcoming Ethereum upgrade may interrupt the operations of 680 smart contracts, designed to manage dApps
01 October 2019   372

The upcoming Ethereum network update called Istanbul will lead to disruptions in many decentralized applications (dApps). This opinion in a conversation with CoinDesk was expressed by the technical director of Aragon One Jorge Izquierdo.

According to him, the work of about 680 smart contracts involved to manage dApps on the Ethereum blockchain in the Aragon infrastructure will be disrupted.

Up until now, DAOs could receive ETH from one another. This will no longer be possible after the Istanbul hard fork.

Jorge Izquierdo

CTO, Aragon One

Representatives of the Kyber Network Ethereum token exchange platform noted that in their case, a hard fork will affect only one smart contract.

Problems are associated with the implementation of the Ethereum Improvement Proposal (EIP) 1884, which is designed to protect the network from congestion and ensure its stable growth, however, increasing the cost of gas for three resource-intensive operations. The costs for the so-called SLOAD operation will grow the most - from 200 to 800 gas units. This will be the main cause of problems with the execution of Aragon smart contracts.

In one Kyber transaction, we actually use a lot of SLOAD operations. So after [Istanbul] is in effect, the price of most of our transactions will go up by 30 percent.

Loi Luu

Co-founder, Kyber Network

Back in 2016, the cost of SLOAD operations increased significantly - from 50 to 200 units of gas. Then Ethereum users were much smaller and the market price of the ETH coin was much lower. In the current environment, confident in Kyber Network, the next wave of SLOAD cost growth can have a significant impact on users and developers.

ETH May Become Security After POS Migration,- CFTC

At the moment, according to the head of CFTC, Ethereum is more likely an exchange commodity rather than a security, but it may change 
14 November 2019   84

The head of the Commission for derivatives trading (CFTC) Heath Tarbert expressed the opinion that cryptocurrencies involved in the cryptocurrency using the Proof-of-Stake algorithm can be considered as securities. It is reported by Decrypt.

Earlier, the head of the CFTC said that in its current form, Ethereum is more likely an exchange commodity rather than a security. However, I am sure Tarbert, over time, the status of an asset may change. For example, a security can become a commodity and vice versa.

We are thinking carefully about it.

Heath Tarbert

Chairman, U.S. Commodity Futures Trading Commission

The popular Proof-of-Stake (PoS) algorithm involves the use of “stake” as a resource that determines which particular node receives the right to mine the next block. Higher chances to generate the next block are received by the node with greater balance.

Recently, staking services that promise customers a return on investment in PoS assets have become popular. According to some experts, these services could potentially violate the provisions of the Howie test, such as having a joint venture, as well as an investment contract involving two parties.

At the same time, Tarbert spoke out against an aggressive approach to regulating cryptocurrencies, which could suppress innovation and hinder the strengthening of the US position in the innovation sphere.

Clarity and consistency is the first step to leadership.

Heath Tarbert

Chairman, U.S. Commodity Futures Trading Commission

Earlier, Heath Tarbert expressed the view that regulated futures based on Ethereum will soon appear on the market.