Ethereum co-founder Vitalik Buterin has rejected allegations that layer-2 solutions on the Ethereum network could unilaterally confiscate user funds. This clarification came amid a renewed debate over the security of funds on Ethereum layer-2 networks, which arose on the X platform.
L2s are dangerous, as they can steal user funds & can even go down at any time!
A clear consequence of their centralized design
Betraying the cypherpunk principles they intended to hold dear
Here are 8 examples of major L2 failures! Exposing the real dangers of “L2 scaling”🧵… pic.twitter.com/7vSFLWp5n2
—Justin Bons (@Justin_Bons) August 31, 2024
On August 31, Justin Bons, founder and CIO of Cyber Capital, criticized the centralized structure of layer-2 networks, claiming that they can put users’ funds at risk and even suddenly stop working.
Bons argued that this centralization goes against the cypherpunk principles that cryptocurrencies, including Ethereum, seek to uphold. Mert Mumtaz, co-founder and CEO of Helius, backed up these concerns, calling it “insane” for major layer-2 solutions to have the technical ability to take funds from users.
However, Buterin dismissed these concerns, explaining that layer-2 solutions on Ethereum are designed to prevent unilateral confiscation of funds. According to Buterin, these systems require a high level of consensus to operate, and any significant changes to governance must be approved by a security council with a voting threshold of at least 75%.
Elon Musk hints at possible return of Dogecoin as payment option on Tesla
Elon Musk, Tesla CEO and prominent tech billionaire, has hinted at the possible return of Dogecoin (DOGE) as a form of payment for Tesla products. This hint comes shortly after Musk and Tesla successfully dismissed a June 2022 lawsuit, in which they were accused of defrauding investors through a Dogecoin pump-and-dump scheme.
On August 31, Musk reignited speculation by replying with a curt “Me” when asked on Platform X if anyone else wanted Tesla to reinstate Dogecoin as a payment option for its merchandise. This response has sparked speculation in the crypto community about the possibility of the popular meme coin being accepted again in the company’s transactions.
Doginals Protocol backed the idea by stating that Dogecoin is a satisfactory option for payments due to its fast transfers, low fees, and a community of over 7 million holders.
Despite this, Tesla has not officially confirmed whether it will reintroduce Dogecoin as a payment method. The company had already accepted Dogecoin in January 2022 for certain purchases, specifying that they would only receive that Cryptocurrency and would not refund other digital assets sent in error. However, this option disappeared without a clear explanation shortly after.
Daniel Tambosso ordered to repay $1.2 million in Bitcoin loan dispute
The British Columbia Supreme Court has ruled that Daniel Tambosso must repay $1.2 million to Hung Nguyen, ending a bitter legal dispute over a $22 Bitcoin loan dating back to September 2021. Judge Fitzpatrick, who is overseeing the case, awarded Nguyen $1,240,106 plus interest as of September 24, 2021.
It all started when Nguyen, after meeting Tambosso through a mutual friend, agreed to lend him 18 Bitcoin for a personal project. However, the next day, Tambosso requested an additional 4 BTC, bringing the total loan to 22 Bitcoin with the promise of repayment within 48 hours, something that never happened.
In his ruling, Judge Fitzpatrick stressed that regardless of the outcome of Tambosso’s initiative, the terms of the contract were clear: he was to return the original 22 Bitcoin. “It’s an old-fashioned cause of action, but with a modern twist,” the judge noted, referring to the use of cryptocurrencies in the agreement.
Speculation drives the rise of Pump.fun and Polymarket in the crypto world
The cryptocurrency industry has always been fertile ground for speculators, and two platforms that stand out in this ecosystem are Pump.fun and Polymarket. Both base their model on speculation, although from opposite approaches.
Pump.fun, a memecoin launchpad, focuses on coins that lack intrinsic value beyond their popularity in the community.
Users bet on which memecoin will take off next, a game of luck rather than strategy. In contrast, Polymarket invites its users to predict real events, from elections to the social media activity of public figures, using all available information to fine-tune their bets.
Launched in January 2024, Pump.fun has seen explosive growth, surpassing $100 million in cumulative revenue, driven by a 1% fee on every transaction. Additionally, the elimination of the cost to create new tokens has further facilitated the emergence of new memecoins on its platform.
However, Pump.fun’s daily revenue showed a worrying drop last Friday, recording the second lowest figure since May. The challenge for Pump.fun will be to maintain user interest in creating and trading memecoins to avoid the fate of other platforms that, after an initial boom, have seen their popularity and revenue plummet.
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