Daily: Load the DIP
Description
After a week a bullish behavior, the dip has hit the crypto markets. I talk about whats happening with EIP 999 and the ERC20 contract buffer underflow bug. Also Former Paypal CEO joins Jamie Dimon and...
AI Analysis
Crypto markets have experienced a significant dip after a bullish week, with Bitcoin dropping 5% and many altcoins seeing double-digit declines. This correction is attributed to a natural market adjustment after rapid growth, as well as a flurry of negative news, or "FUD" (Fear, Uncertainty, and Doubt), particularly concerning Ethereum and some high-profile attacks on Bitcoin.
Here's a breakdown of the key events and insights:
* Market Dip Analysis:
* After an impressive week of continuous gains without a weekend dip, the crypto markets finally experienced a significant correction.
* Bitcoin dropped around 5%, showing relative resilience compared to other cryptocurrencies.
* Ethereum, Ripple, and Bitcoin Cash saw double-digit percentage drops.
* Some altcoins, like EOS and Decred, managed to hold steady or even increase, indicating the dip didn't affect the entire market uniformly.
* The dip is largely seen as a natural correction after a period of major growth, combined with new FUD spreading in the market.
* Sequoia Capital Sues Binance:
* Sequoia Capital, a major venture capital firm, is suing Binance.
* Sequoia initially planned to invest in Binance, but the deal fell through.
* Binance subsequently secured investment from IDG Capital, leading Sequoia to claim a breach of contract.
* The situation is described as if "Binance is the hottest chick on the block," with investors fighting over it, and Sequoia appearing "salty."
* The case might be settled through arbitration, an out-of-court process.
* Ethereum Improvement Protocol (EIP) 999 Controversy:
* There's a significant risk of Ethereum potentially splitting due to the controversy surrounding EIP 999.
* EIPs are proposals by developers to improve the Ethereum network, which get merged if approved by the community.
* EIP 999 aims to unfreeze funds that were locked in the infamous Parity multi-signature wallet bug from the previous year. A "self-destruct" function was accidentally triggered, permanently locking a large amount of ETH.
* The debate is split between two camps:
* "Code is Law" Advocates: Believe that because the bug was written into the contract and deployed, the contract's outcome (funds being locked) should stand, regardless of intent.
* Restoration Advocates: Argue that the locking was unintentional and an error, and the funds should be returned to their rightful owners by reversing the transaction.
* The vote for EIP 999 concluded with 55% voting "no," 39% "yes," and 5% undecided.
* Despite the vote, there's still potential for dispute, and if EIP 999 were to be deployed against the community's wishes, it could lead to a split into two separate Ethereum blockchains, similar to the Ethereum Classic split. The presenter believes that code should serve human intent and allow for fixes in cases of severe bugs.
* New ERC20 Contract Bug (Buffer Underflow):
* A new "buffer underflow" bug has been discovered in multiple ERC20 smart contracts, affecting potentially 20 or more tokens.
* This bug allows a hacker to create an extremely large number of tokens almost for free.
* An incident occurred where a hacker exploited this to create a massive amount of Beauty Chain (BCD) tokens and sent them to an exchange.
* Fortunately, exchanges caught the exploit in time and prevented the transfer of the illicitly created tokens.
* This highlights a critical challenge with blockchain: once a smart contract is deployed, it cannot be changed or "patched" like traditional software. Programmers must ensure the code is absolutely secure from the outset, as there's no way to issue a bug fix afterward.
* PayPal CEO's Anti-Bitcoin Stance vs. Peter Thiel:
* Bill Harris, the former CEO of PayPal, publicly stated that Bitcoin is the "greatest scam in history."
* Harris's arguments include:
* Bitcoin isn't a reliable means of payment due to price swings, a claim that is dismissed as "complete horse crap," as all currencies experience price fluctuations, and Bitcoin is still in its early stages.
* He revived the argument about Bitcoin being primarily used for criminal activity, which is also dismissed as "absolute bogus" by legitimate scientists.
* A key counter-argument is that Bitcoin offers absolute control over one's funds, unlike centralized systems like PayPal, which can freeze accounts or implement new fees without reason. Bitcoin users hold their private keys, giving them undeniable ownership on the blockchain.
* This view sharply contrasts with another PayPal co-founder, Peter Thiel, who is very pro-cryptocurrency and believes Bitcoin will become the "online equivalent of gold."
* It's important to remain level-headed amidst such FUD, understanding that market volatility is inherent to new technologies.
* Positive Outlook and Talent Migration:
* Despite the FUD and market volatility, there's significant progress and talent moving into the cryptocurrency space.
* Blockchain technology is being applied to solve real-world problems, such as Zebi's work on land registry issues to prevent data tampering.
* There's a noticeable "brain drain" from traditional tech companies, with smart individuals leaving well-paying jobs to work full-time in the cryptocurrency and blockchain space, indicating a strong belief in its future.
Transcript
The dip is here guys so we're gonna take a look at what's happening on the market today there's definitely a lot of blood on the streets we're also going to take a look at what's happening on a new Sequoia is suing Binance we got some crazy stuff happening on Ethereum and even some contracts being exposed to have flaws in them and finally we're gonna look at some fun news as well coming from the CEO of PayPal and I found it to be absolute horse shit so all this and more on today's box mining da...