Check out the most important news on what happened in the blockchain universe recently: Greenpeace activists and Ripple co-founder Brad Larsen launching campaign to help the climate and make Bitcoin’s code more environmentally friendly. Blockchain game Axie-Infinity became a victim of a space raid where hackers managed to steal cryptocurrencies worth about $600 Million. Micro Strategy subsidiary has taken a loan of $205 Million to buy Bitcoin. Russian President Putin surprised everyone by saying that gas deliveries to “friendly states” could be paid for with rubles and Bitcoin. Will Russia be a crypto state soon?
- Bitcoin: Change the code not the climate!
- Axie Infinity: Hackers capture $600 million in crypto
- $205 million loan: Micro Strategy subsidiary wants to buy bitcoin
- Russia to be a crypto state soon?
Bitcoin: Change the code not the climate!
As Krypto-News reported recently, Greenpeace activists have teamed up with Ripple co-founder Brad Larsen to launch the “Change the Code, not the Climate” campaign. The goal of this campaign is to help the climate and make Bitcoin’s code more environmentally friendly and reduce the amount of electricity used in Bitcoin transactions. Further, Michael Brune, the former board member of Sierra Club, hopes to attract large corporations to the campaign. Thus, he said in an interview:
“We’re in this campaign for the long haul, but we’re hoping – especially since Bitcoin is now funded by organizations and individuals that care about climate change – that we can force leadership to agree that this is an issue that needs to be addressed …
Goldman Sachs, BlackRock, PayPal, Venmo, Fidelity – there are many companies that we expect to be helpful in this effort.”
Ethereum is cited here as an example of a sustainable change. Ethereum, the second largest cryptocurrency on the market, had announced its intention to switch from proof-of-work to the more efficient, proof-of-stake mechanism with its next update, claiming to reduce energy consumption by up to 99%.Further Bard Larsen justified that Bitcoin could fall behind its competition in his opinion, if the energy problem could not be solved! One should probably consider every possibility to counteract the environment and the changing climate. Only there are few possibilities to make Bitcoin more efficient in terms of consensus mechanism. For one thing, proof-of-work is essential to the unrivaled security that the Bitcoin network provides to its users, and Bitcoin is already the most efficient and cleanest network on the planet. There is no question that proof-of-work consumes a lot of energy, but at the same time it is important to understand why this consumption is so high and what the benefits are. All in all, there is certainly still potential in increasing the efficiency of mining hardware, and we are also seeing incredible progress in the market for sustainable energy generation – in summary, Bitcoin is undisputedly the safest network in the crypto space and will remain so from a current perspective. For networks like Ethereum or Solana, proof-of-stake may work and even there, this decision is at the expense of security, but the fact is, Bitcoin would no longer be Bitcoin without proof-of-work and would lose its USP by changing the proof mechanism.
Axie Infinity: Hackers capture $600 million in crypto
According to t3n, the blockchain game Axie-Infinity became a victim of an unprecedented space raid, where hackers managed to steal cryptocurrencies worth about $600M. They probably managed to do so through a vulnerability in Axie-Infinity’s security network, which was exploited by the hackers. Axie-Infinity has around 2.5 million daily users, making it one of the hottest NFT games in the crypto space. All transactions within the game environment are conducted in cryptocurrencies via the blockchain bridge Ronin. It was precisely here that the hackers managed to find a gap in Axie Infinity’s protective shield and abuse it for their own purposes. As a result, the hackers managed to capture a total of about $600 million, which is currently still in the wallet of the attacker. The incident was discovered by Sky Mavis, which discovered the attack rather accidentally through the complaint of a user who could no longer access his account. Sky Mavis assured that it would “work with the authorities and investors to the best of its ability to ensure that you get your currencies back.”
$205 million loan: Microstrategy subsidiary wants to buy bitcoin
MacroStrategy, a subsidiary of MicroStrategy, has taken out a loan of $205 million through Silvergate Bank to be able to invest further in Bitcoin. Bitcoins are also being deposited as collateral for the bank, which is secured by a collateral account held by Macro Strategy. According to the Cointelegraph.com article, the loan will be used primarily for the purchase of Bitcoin, as well as for fees and interest related to the loan. “The loan from SEN Leverage will allow us to expand our position as a leading investor in Bitcoin,” said Michael Saylor, MicroStrategy’s CEO. “With the capital that the loan allows us, we have effectively turned our Bitcoins into productive collateral that we can use to further execute our business strategy.” The Silvergate Exchange network leverage service has been in existence since 2020 and provides businesses with the ability to obtain BTC-backed loans in $. With a total of $570 million in loan commitments through last December, the demand seems to be there and the bitcoin loan business is picking up steam.
Russia to be a crypto state soon?
As BTC-Echo reported, Russia seems to be opening up further to cryptocurrencies. For example, Russian President Putin surprised everyone by saying that gas deliveries to “friendly states” could be paid for with rubles and Bitcoin in the future. Furthermore, Russia’s Prime Minister Mishustin demanded that digital currencies be immediately integrated into the Russian financial system and that Bitcoin mining be promoted. This of course raises the question of whether Russia is trying to circumvent sanctions in this way and are cryptocurrencies therefore really such a threat to the world as ECB chief Christine Lagarde says? A direct threat seems Bitcoin currently probably rather for the ECB and the associated power and control monopoly money. Because Bitcoin, unlike a bank, creates digital scarcity and full transparency – so every network participant can see every transaction made so far within the network – and continuously. Since in most cases a real money account was used to buy the first Bitcoins, a wallet can theoretically also be assigned to a direct person or organization. Similar to FIAT money, there are of course ways and means to disguise the sender in crypto space – one of them would be to use a so-called mixer, another would be the way via privacy coins. According to Chainalysis, a US company that has been monitoring money launderers and fraudsters since 2014, Russian activities can be observed. Chainalysis also told BTC Echo that privacy coins have a market capitalization that is far too small for Russia’s gross domestic product and that Putin could further devalue the ruble by accepting Bitcoin. Rather, according to Chainanalysis, the danger comes from mining. Accordingly, Russia could follow Iran, which is trying to circumvent Western sanctions by mining Bitcoins. Already in August of last year, Russia’s share of the Bitcoin hash rate was in third place, right behind the US. The bottom line is that it would only be a matter of time until an error caused by human error leads to the fact that one can also assign the mining wallets and then also see quite quickly who is doing business with whom, in order to sanction them again or to mark the Bitcoins, for example, by a “colouring” and make them unusable for many purposes.