Neo launches N3 amid high Ethereum gas fees · TechNode

Neo launches N3 amid high Ethereum gas fees · TechNode

Neo, an Ethereum alternative and one of China’s oldest blockchain protocols, is starting to roll out a third version of its public blockchain infrastructure, dubbed N3.

Why it matters: N3 is a make-it-or-break-it moment for one of China’s most promising and globally recognized blockchain projects. The team has been working on the update for years. On paper, N3 hits all the right notes for becoming a widely used blockchain protocol. But it will need to stand out from an increasingly competitive crowd.

The upgrade comes at an opportune time: The Ethereum network is facing critical capacity challenges, meanwhile the Chinese government highlighted blockchain as a strategically important technology in the latest Five-Year Plan.

Founded in 2013, Neo is one of many Ethereum alternatives looking to attract developers to build decentralized applications on its blockchain.

Details: The original planned launch date for Neo’s third iteration was in 2020, but it was pushed back to Q1 2021 because the system wasn’t ready, Da Hongfei, co-founder of Neo, told TechNode. It is difficult to predict a specific time for a community-driven project, Da said. Like most public blockchains, the code was developed by a small team of core developers and a wider global developer community.

N3 will increase transaction speed on the network from 1,000 per second to 5,000 and reduce transaction charges, known as “gas fees,” by 100 times, according to a Neo press release emailed to TechNode.

Cheap gas is strategically important to compete with the Ethereum network, whose rocketing transaction fees have sent developers looking for greener pastures.

The new version of the chain will also include oracle integration, a decentralized file storage solution similar to Filecoin’s IPFS, and a new governance mechanism.

Oracles like Chainlink and decentralized storage like Filecoin are relatively new, viable blockchain features. When Chainlink and Filecoin broke out with their solutions in 2020, their coin prices soared. Just like a car needs gasoline to run, the Ethereum virtual machine needs gas. Gas fees are essentially transaction fees that users pay to miners to include their transactions in blocks, which make up the ever-growing blockchain ledger. Ethereum miners can pick which transactions to execute, so the higher the demand for execution—reflecting an increase in the number of people wanting to use the network—the higher the gas fees.

Neo’s focus is digital assets, so the co-founder said the community is “encouraged” to build fundamental infrastructure for decentralized finance, such as landing and swap protocols.

Oracles are key to DeFi because they connect the real world to blockchains. Da also sees N3 as a good place to build non-fungible tokens (NFTs), due to the decentralized file storage feature.

Da said that because developers were waiting for the network upgrade, they hadn’t been building many dapps on Neo.

Migration: The migration of Neo tokens to the new network will take place using a consortium interoperability protocol Poly Network developed by the team behind Neo.

Exchanges and wallets take care of token migration, the process by which old tokens are converted into new tokens on the new chain, using smart contracts.

Radical changes to the blockchain protocol such as the ones N3 will implement usually take place through a so-called hardfork: The chain splits in two parts, and the change is implemented in one.

Instead of a hardfork, Neo will use an interoperability protocol, a type of chain that enables the transfer of information from one blockchain to another, to create a completely new chain.

“We will be the first blockchain in the world to do a completely new chain through an interoperability protocol,” Da said.

These protocols are at the frontier of blockchain development and crucial for mass adoption: They promise to connect chains that currently exist as islands to create an internet of blockchains.

The N3 migration will test whether Poly Network can be used to create a blockchain from scratch and correctly transfer all the data from the existing chain.

The Ethereum challenges: The Ethereum network has been facing significant challenges in the last few months, and developers are scrambling to find alternatives for their dapps. Gas fees have been hitting record highs as the network becomes congested.

Da Hongfei, Neo’s co-founder (Image credit: Neo) Ethereum “has reached its maximum capacity,” Da said. Transactions per day have plateaued at around 1.2 million to 1.3 million since August, while alternatives like Binance Smart Chain are reaching record-high transaction volumes.

The update to Ethereum 2.0 would likely solve some of these problems, but has been continuously put off. Da thinks we won’t be seeing it for a few years: “It’s difficult to deal with different interest groups,” particularly miners, he said. The upgrade will hurt their bottom line by drastically changing how they are rewarded.

“At the end of the day, Ethereum is one blockhain but everyone needs to maintain a ledger. The capacity growth of the Ethereum ledger will not outpace the growth of demand,” so there is room for many different protocols to grow, Da said.

Government tailwinds: Blockchain’s inclusion in the 2021-2025 Five-Year Plan will “definitely” bring more investment to the technology, Da said.

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – March 25th, 2021

Ethereum

Ethereum slid by 5.19% on Wednesday. Following on from a 0.79% decline on Tuesday, Ethereum ended the day at $1,581.79.

A bullish start to the day saw Ethereum rise to a mid-day intraday high $1,740.91 before hitting reverse.

Ethereum broke through the first major resistance level at $1,711 before sliding to a late intraday low $1,550.0.

The extended sell-off saw Ethereum fall through the first major support level at $1,639 and the second major support level at $1,610.

More significantly, Ethereum also fell through the 23.6% FIB of $1,579.

Finding late support, Ethereum broke back through the 23.6% FIB to end the day at $1,581 levels.

At the time of writing, Ethereum was up by 0.37% to $1,587.67. A mixed start to the day saw Ethereum fall to an early morning low $1,572.00 before rising to a high $1,588.93.

While leaving the major support and resistance levels untested early on, Ethereum fell through the 23.6% FIB of $1,579 before finding support.

For the day ahead

Ethereum would need to move through the pivot level at $1,624 to support a run at the first major resistance level at $1,699.

Support from the broader market would be needed, however, for Ethereum to break out from to $1,650 levels.

Barring an extended crypto rally, the first major resistance level and Wednesday’s high $1,740.91 would likely cap any upside.

In the event of a breakout, Ethereum could test resistance at $1,800 before any pullback. The second major resistance level sits at $1,815.

Failure to move through the $1,624 pivot would bring the 23.6% FIB of $1,579 and the first major support level at $1,508 into play.

Barring another extended sell-off, however, Ethereum should steer clear of $1,450 levels. The second major support level sits at $1,433.

Looking at the Technical Indicators

First Major Support Level: $1,508

Pivot Level: $1,624

First Major Resistance Level: $1,699

23.6% FIB Retracement Level: $1,579

38.2% FIB Retracement Level: $1,292

62% FIB Retracement Level: $830

Story continues

Litecoin

Litecoin slid by 5.33% on Wednesday. Following a 0.06% gain on Tuesday, Litecoin ended the day at $175.95.

A bullish start to the day saw Litecoin rise to an early afternoon intraday high $197.00 before hitting reverse.

Litecoin broke through the first major resistance level at $190 and the second major resistance level at $194.

More significantly, Litecoin also broke through the 23.6% FIB of $195 before sliding to a late intraday low $172.40.

The sell-off saw Litecoin fall back through the resistance levels and the 23.6% FIB.

Litecoin also fell through the first major support level at $181 and the second major support level at $177.

Finding late support, Litecoin revisited $178 levels before falling back through the second major support level.

At the time of writing, Litecoin was up by 0.09% to $176.10. A mixed start to the day saw Litecoin fall to an early morning low $174.92 before rising to a high $177.02.

Litecoin left the major support and resistance levels untested early on.

For the day ahead

Litecoin would need to move through the $182 pivot level to support a run at the first major resistance level at $191 and the 23.6% FIB of $195.

Support from the broader market would be needed, however, for Litecoin to break back through to $190 levels.

Barring an extended crypto rally, the first major resistance level and 23.6% FIB would likely cap any upside.

In the event of an extended rally, Litecoin could test resistance at $200 before any pullback. The second major resistance level sits at $206.

Failure to move through the $182 pivot level would bring the first major support level at $167 into play.

Barring another extended sell-off, Litecoin should steer clear of the second major support level at $157.

The 38.2% FIB of $163 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $167

Pivot Level: $182

First Major Resistance Level: $191

23.6% FIB Retracement Level: $195

38.2% FIB Retracement Level: $163

62% FIB Retracement Level: $110

Ripple’s XRP

Ripple’s XRP tumbled by 12.77% on Wednesday. Following a modest 0.52% gain on Tuesday, Ripple’s XRP ended the day at $0.47929.

A bullish start saw Ripple’s XRP rally to an early afternoon intraday high $0.56260 before hitting reverse.

Falling short of the first major resistance level at $0.5843, Ripple’s XRP slid to a late intraday low $0.45319.

Ripple’s XRP fell through the first major support level at $0.5266 and the second major support level at $0.5036.

More significantly, Ripple’s XRP also fell through the 23.6% FIB of $0.5320 and the 38.2% FIB of $0.4632.

Finding late support, Ripple’s XRP moved back through 38.2% FIB to end the day at $0.47 levels.

At the time of writing, Ripple’s XRP was up by 0.61% to $0.48223. A mixed start to the day saw Ripple’s XRP fall to an early morning low $0.47481 before rising to a high $0.48611.

Ripple’s XRP left the major support and resistance levels untested early on.

For the day ahead

Ripple’s XRP will need to move through the $0.4984 pivot level to bring 23.6% FIB of $0.5320 and the first major resistance level at $0.5435 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break back through to $0.50 levels.

Barring an extended crypto rally, the 23.6% FIB and first major resistance level would cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at Wednesday’s high $0.5626 before any pullback. The second major resistance level sits at $0.6078.

Failure to move through the $0.4984 pivot would bring the 38.2% FIB of $0.4632 and the first major support level at $0.4341 into play.

Barring an extended sell-off, however, Ripple’s XRP should steer clear of sub-$0.40 levels. The second major support level sits at $0.3890.

Looking at the Technical Indicators

First Major Support Level: $0.4341

Pivot Level: $0.4984

First Major resistance Level: $0.5435

23.6% FIB Retracement Level: $0.5320

38.2% FIB Retracement Level: $0.4632

62% FIB Retracement Level: $0.3521

Please let us know what you think in the comments below.

Thanks, Bob

This article was originally posted on FX Empire

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SEC case against Ripple could see Bitcoin and Ethereum pulled into the farce

In the on-going case of Ripple vs. the U.S. Securities and Exchange Commission (SEC), last week, the SEC refused to produce documentation on Bitcoin and Ethereum. They argued that the request is irrelevant to this case.

However, yesterday, Ripple Labs filed a response letter with magistrate judge Sarah Netburn, requesting the SEC submit the documentation requested.

Why is Ripple’s XRP considered a security when Bitcoin and Etheruem are not?

The SEC filed a lawsuit against Ripple in late December alleging the firm, and two key executives had sold XRP tokens, which they consider unregistered securities.

Much has happened in the three months since then. Especially in terms of damage to XRP’s price and desertion by key partners and exchanges. However, as the case has gone on, the price of XRP has recovered, to some extent, from its $0.18 low.

As things stand, there are four main motions in this case. The first is to compel the discovery of documents relating to CEO Garlinghouse and Chairman Larson’s financial information. Second is the SEC’s motion to strike Ripple’s fair notice defense. The third is Garlinghouse and Larson’s motion to dismiss the lawsuit against them. And finally, Ripple’s motion on why it took the SEC seven years to bring legal action.

Yesterday’s response letter filing could bring additional complexity to this case. The law firm representing Ripple says documentation the SEC holds on Bitcoin and Ethereum is relevant because they are comparable with XRP.

The SEC gives Bitcoin and Ethereum the green light

In June 2018, former SEC Director William Hinman gave a speech in which he gave Bitcoin and Ethereum the green light.

“when I look at Bitcoin today, I do not see a central third party whose efforts are a key determining factor in the enterprise. The network on which Bitcoin functions is operational and appears to have been decentralized for some time, perhaps from inception. And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions.”

Ripple’s legal team wishes to know whether there was a perceived equivalency among the primary digital assets. If so, on what basis is XRP being singled out?

Legal expert chimes in

Attorney Jeremy Hogan offered his opinion on this latest twist by saying he would be shocked if the judge did not uphold the response letter.

Hogan added, depending on the content of the documents, the SEC could be at fault for “knowledge of wrongdoing.”

As the case has gone on, Ripple’s legal arguments have become all the more convincing. The question is, will Judge Netburn consider Bitcoin and Ethereum relevant to Ripple’s case?

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