1. PixelPlaygroundHome
  2. Blockchain Briefs

Why is the blockchain frozen (Why is the blockchain crashing)

• Blockchain Briefs • 68 views

Why is the blockchain frozen? Why is the blockchain frozen? The characteristics

Why is the blockchain frozen (Why is the blockchain crashing)

Why is the blockchain frozen? Why is the blockchain frozen?

The characteristics of the blockchain determine the way cryptocurrencies are circulated in the network. However, for ordinary people, Bitcoin is not an acceptable asset because it is a decentralized system and a network driven entirely by smart contracts. Therefore, we believe that Ethereum is not a perfect, insecure technology, but this technology itself does not bring any problems or consequences.

If Ethereum is a distributed database, then it is a data storage repository, and the blockchain is a ledger that distributes all nodes to multiple computers independent of itself. This way, no risks or negative effects will be generated. Therefore, whether there are vulnerabilities, suspicious transactions, and other malicious attacks in the blockchain, it can be considered as a secure way to protect digital assets, thus effectively preventing hackers from exploiting this huge vulnerability for attacks.

Of course, due to these reasons, many blockchain projects have not been fully developed, have not received enough market recognition, and are difficult to regulate.

For example, a large company recently launched a product called “ChainPass,” which is a peer-to-peer payment service based on blockchain technology. “Chain Coins” enables cross-border payments through cooperation with traditional banking services and is currently online with multiple financial institutions and platforms, including BitPay. At the same time, the product has started public sales.

However, with the continuous development and improvement of the blockchain industry and the emergence of various applications, more and more blockchain projects are facing the problem of fund theft.

First, most users cannot open web pages normally; second, most users have not logged into the website and can only download some software; finally, the browser of the vast majority of users is in an offline state. The third situation is that many users cannot log in to Internet websites; the fourth situation is that users cannot view the computer information on their phones. In this case, “ChainPass” will default to close the APP, making it easier for people to use their phones for transfer operations.

In addition, some exchanges have also been restricted (such as Coinbase). Although the exchanges can extract some cash from their wallets, they can still access account private keys through third-party cold/hot separation methods.

In addition, some protocols allow users to directly submit cryptocurrency information and transaction records to exchanges. For example, they can modify passwords without verification.

Why is the blockchain crashing?

Editor’s note: This article is from Inter Chain Pulse (ID: HiveEcon), authored by Yuan Shang, authorized reposted by Odaily Planet Daily.

2018 was an unsustainable year for the blockchain crash. Since the beginning of the year, the price of Bitcoin has fallen by nearly 80% from around $20,000. From November last year to the end of October, there was a sharp drop in the global cryptocurrency market. From January to early September 2020, the total market value of cryptocurrencies was only about $3 trillion, a decrease of nearly 90% compared to 2017.

One of the hottest projects in 2020 is the decentralized exchange Uniswap, with a trading volume of over $400 million in the past month. This has made many high-profile investors less interested in this emerging technology. But with the development and application of the industry, its ecological development has also begun to improve. At the end of 2017, Uniswap was found to have caused a short-term surge in ETH, which rose by more than 70%, but after June, it has fallen all the way and fell back to around $3,000. As of the time of publication, Uniswap has fallen by more than 50%.

But was the blockchain market not doing well in the first half of 2019? Because the valuation of the entire digital token industry is still small and in its early stages. If we consider it as a completely new field, its value will definitely rise. Therefore, the second half of 2019 is a very anticipated time for the overall performance of the blockchain market, and it is expected that more funds will come in the foreseeable future. Analysis of the reasons for the blockchain crash.

Since the beginning of this year, the price of Bitcoin has been fluctuating. In the first quarter of 2019, the highest price of BTC reached around $54,000 and then fell back to the range of 42,000 points. The lowest price was around $4,388. Although a large part of the increase was attributed to the institutional investment and other individual investors entering the market, most retail investors have not entered the market. At the end of 2018, BTC ushered in the second halving event, followed by a rapid rise to a new high and then a new low within the year.

However, with the recent arrival of the bear market, many people think that blockchain is an opportunity, but now it seems that this trend is still difficult to change. “We know that fundamentally, blockchain is still a financial system.” A senior person told Inter Chain Pulse, “I think this is a good time window, and everyone should be prepared to face new challenges!” About the reasons behind this phenomenon, Inter Chain Pulse said: “Before the outbreak of the new crown epidemic, the popularity of blockchain technology was very high. For example, people may not use WeChat or Alipay to pay as they used to, they are usually reluctant to pay others, and do not want to afford daily expenses such as black phones and taxi fares… These are all issues to consider.”

At the same time, according to Inter Chain Pulse statistics, a total of 16 companies disclosed financing in 2019, including 7 companies including Ant Financial, with a total financing amount of 8.57 billion yuan. In mid-December of that year,

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/24062/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 08/15/2023 12:56
Next 08/15/2023 13:19

Recommended articles