Jan 26 2023 12 mins
Episode Highlights
- Ethereum has transitioned to the more energy-efficient proof of stake consensus mechanism.
- This transition will lead to lower transaction fees, faster transactions, and a 99.5% reduction in energy consumed by the Ethereum network.
- FTX faced a liquidity crunch in November that eventually led to its collapse, as well as the collapse of its sister company Alameda Research.
- It appears FTX funneled funds, including user deposits, to Alameda Research to prop it up earlier this year as other centralized entities were failing.
- Centralized crypto entities have started publishing proof of reserves to reassure customers
- DeFi protocols have continued to work as programmed.
Helpful links
Ethereum Merge and Proof of Stake
- https://www.google.com/search?client=safari&rls=en&q=ethereum+merge&ie=UTF-8&oe=UTF-8
- https://www.coinbase.com/learn/crypto-basics/what-is-mining
- https://hbr.org/2021/05/how-much-energy-does-bitcoin-actually-consume
- https://www.nytimes.com/interactive/2021/09/03/climate/bitcoin-carbon-footprint-electricity.html
- https://ark-invest.com/articles/analyst-research/bitcoin-myths/
The FTX Collapse
- https://www.coindesk.com/ftx-news-coverage/
- https://www.coindesk.com/markets/2022/11/15/defi-protocols-are-winning-users-as-centralized-crypto-exchanges-suffer-ether-outflows/
Proof of Reserves and Centralized Exchange Transparency
- https://www.kraken.com/proof-of-reserves
- https://www.investopedia.com/proof-of-reserves-6830204
- https://niccarter.info/proof-of-reserves/