The Protocol: EigenLayer Ready to Launch Missing Feature

1 month ago

Welcome to The Protocol, CoinDesk's play wrap-up of the astir important stories successful cryptocurrency tech development. We’re Margaux Nijkerk and Sam Kessler, reporters connected CoinDesk’s Tech team.

In this issue:

EigenLayer Finally Ready To Launch Critical Missing Feature

RootstockLabs Prepares To Release SDKs for Bitcoin Layer 2s Using BitVMX

Inside North Korea’s Favorite Crypto Laundering Tool: THORChain

Bitcoin Developer Proposes Hard Fork To Protect BTC From Quantum Computing Threats

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Network News

EIGENLAYER’S KEY FEATURE IS FINALLY COMING: EigenLayer, the restaking protocol, shared past week that it volition yet present its long-awaited slashing diagnostic connected April 17, marking the protocol's archetypal "feature-complete" version. Slashing volition let Actively Validated Services (AVSs) — apps built atop EigenLayer's restaking strategy — to penalize operators who neglect to conscionable pre-established conditions, and reward those who do. EigenLayer primitively pioneered the conception of restaking, a mode for Ethereum users to unafraid further protocols beyond the basal furniture by recommitting their staked Ether. Slashing was expected to beryllium a halfway portion of this system, providing apps a mode to punish atrocious actors by seizing a information of their capital. Since slashing was not portion of EigenLayer erstwhile it initially launched successful 2024, it near country for competitors to summation marketplace share. Symbiotic, which allows for the restaking of immoderate asset, has been utilized by EigenLayer aboriginal adopters including Hyperlane, an interoperability framework, and Ethena, a fashionable synthetic dollar protocol. — Sam Kessler Read more.

BUILDING LAYER-2S ON BITCOIN COMING SOON: One of the oldest Bitcoin ecosystem projects is moving to the adjacent signifier of enabling developers to physique layer-2 networks utilizing its computational layer. Rootstock is 1 of galore projects presently advancing the extremity of bringing greater inferior and interoperability to Bitcoin, which it is doing utilizing "BitVMX", a modified mentation of the BitVM programming language. RootstockLabs task is weeks distant from releasing bundle improvement kits (SDKs), allowing developers to commencement producing their ain Bitcoin layer-2s utilizing BitVMX, laminitis Sergio Lerner told CoinDesk. SDKs are sets of tools enabling third-parties to physique applications utilizing a peculiar level oregon framework. "We are precise adjacent to having each the pieces acceptable for radical to commencement gathering their ain solutions connected apical of BitVMX," Lerner said successful an interview. — Jamie Crawley Read more.

NORTH KOREA’S PREFERRED CRYPTO LAUNDERING TOOL: In February, North Korea stole $1.4 cardinal successful the biggest-ever crypto heist. THORChain, a web utilized to swap crypto, has go cardinal to North Korea's laundering operations — utilized to span 85% of funds from the hack. Unlike immoderate different blockchain services, THORChain's operators person refused to artifact transactions linked to the Bybit heist, contempt requests from the FBI and different authorities agencies. THORChain wallets similar Asgardex and Vultisig — tools that astir radical usage to transact connected the web — haven't budged, either. According to estimates from blockchain information researchers who spoke to CoinDesk, THORChain's large wallet developers and validators — galore publically identified and based successful jurisdictions with strict anti-money-laundering regulations, including the U.S. — person earned implicit $12 cardinal successful fees connected to the heist. The U.S. Office of Foreign Assets Control (OFAC) has antecedently sanctioned blockchain services utilized successful transportation with wealth laundering, specified arsenic the mixer app Tornado Cash (which has since been delisted aft a court ruling) and Bitzlato, an exchange. Prosecutors person besides charged operators down akin platforms. For ineligible experts and the crypto community, whether THORChain — a layer-1 blockchain — should beryllium treated otherwise than these different services revives a cardinal statement faced by virtually each crypto platforms: Is the web genuinely decentralized? — Sam Kessler Read more.

CAN BITCOIN RESIST QUANTUM COMPUTING?: Bitcoin could beryllium headed for its astir sweeping cryptographic overhaul yet if a caller connection gains traction. A draught Bitcoin Improvement Proposal (BIP) titled Quantum-Resistant Address Migration Protocol (QRAMP) has been introduced by developer Agustin Cruz. It outlines a program to enforce a network-wide migration of BTC from bequest wallets to ones secured by post-quantum cryptography. Quantum computing involves moving distant from a process reliant connected binary code, ones and zeros, and exponentially expanding computing powerfulness by employing Quantum bits (qubits) that beryllium successful aggregate states simultaneously. Such a leap successful powerfulness is expected to endanger modern computing encryption built by classical machines. The connection suggests that aft a predetermined artifact height, nodes moving the updated bundle would cull immoderate transaction trying to walk coins from an code utilizing ECDSA cryptography, which could theoretically marque it susceptible to quantum attacks. — Francisco Rodrigues Read more.

In Other News

The archetypal Ripple (XRP) ETF went live connected Tuesday. Also connected Tuesday, Ripple agreed to acquire multi-asset premier brokerage steadfast Hidden Road for $1.25 billion, marking 1 of the largest M&A deals successful the integer plus manufacture to date. — Will Canny and Shaurya Malwa

Galaxy Digital plans to redomicile successful Delaware and database shares connected Nasdaq aft May 9 shareholder vote. The quality comes a week aft Galaxy, a large crypto task firm, agreed to wage $200 cardinal successful a colony with the New York lawyer general’s bureau related to the fund's engagement successful the 2022 Terra-Luna collapse. — Tom Carreras Read more

Regulatory and Policy

China and Europe some approved retaliatory tariffs against the United States — the latest improvement successful a commercialized warfare ignited by U.S. President Donald Trump that has ripped done planetary markets, including integer plus markets. — CoinDesk

The terms of bitcoin dropped beneath $77K connected Wednesday, representing a relatively modest 8% diminution since the announcement of Donald Trump's 'Liberation Day' tariffs. Recession fears person teed up a large trial for crypto markets, which were calved retired of the 2008 fiscal situation and person not existed done a large U.S. recession. So far, the decentralized concern (DeFi) assemblage has shown signs of resilience. — Oliver Knight Read more

Argentina's legislature has launched an probe into LIBRA, the alleged pump-and-dump memecoin task promoted by president Javier Milei. The token wiped retired 90% for investors and led to calls for Mile's impeachment. —Francisco Rodrigues Read more