Bitcoin Update, Cardano Shelley, ETH 2.0 release date & more! (Crypto Over Coffee Episode 3)

by birtanpublished on September 30, 2020

ladies and gentlemen people of the
internet welcome to yet another episode
of an ongoing weekly series on this
channel called crypto over coffee every
Friday I pick out interesting news
current events and announcements in the
cryptocurrency and technology world and
break them down for you over a cup of
delicious coffee today we're talking
about Bitcoin payments proposed Bitcoin
upgrades cardano's development updates
theorem 2.0 and a whole bunch more for
all you chain-linked fans stick around
to the end of the video because I think
you're gonna like it oh and by the way
in future episodes of the series that
will also be some awesome giveaways of
cool products apparel and cryptocurrency
so make sure you hit that subscribe
button and stop by every single Friday
so you don't miss out on all that good
stuff so as always we start these
episodes with questions from the
community on YouTube and Twitter so
let's grab those on the good old iPad
right now if you want one of your
questions answered in the future make
sure you leave them in the comments down
below or tweet me at his show xi4 on
twitter now the first question that I
wanted to answer today is a question
from Eric sylvan on YouTube asking
aetherium seems much faster if we get
some big DAP sand usage over the next
couple months is it fast enough not to
clog before if – and also how big will
Oracle's actually be will it be one
company or a couple that eventually
start a series of smart contracts or
eventually a series of smart contracts
great questions first and foremost
aetherium is scalable to a certain point
right now we've seen things like crypto
kitties and other larger apps show up on
aetherium 1 and work out pretty well
there were some clogging issues
definitely aetherium 2.0 should solve
those things in terms of Oracle's I
think Oracle's are gonna be a huge huge
thing and there are a lot of companies
like chain-link or ik lies etc that are
working on this problem and if you want
to learn more about Oracle's I had a
full video all about Oracle's and I'll
link that right above and in the
description down below Oracle's are very
important to get critical external data
into smart contracts to execute
conditional logic in those contracts
smart contract is only as good as a
developer that that builds it and the
data that goes into that contract if
it's making decisions on data it's very
important that the data is good so
Oracle's are huge and it'll be a series
of companies and a series of smart
contracts that handles this sort of
thing chain links a very interesting
implementation you should check it out
the next question that I wanted to
answer is one it's a little atypical for
my channel but I think it's an
interesting one which next coin will be
huge like aetherium I think this is a
good question only because I think
people focus a lot on this type of thing
which coin will be huge right which coin
will be huge in terms of price it's not
something that I talk about very often
but which coin will be huge in terms of
value in terms of how good the project
is I think chain links up there I think
Icahn has a great use case I think
Cardno is fantastic
I think if 2.0 is going to make an
impact and I guess you could argue it is
Ethan the question but I say that
reference is eath one I think aetherium
2.0 is going to be significant obviously
there are a lot of other projects out
there that are trying to do some cool
stuff too so I'm not discounting your
project but let me know in the comments
down below which projects you are keen
on yourself and let me know why and the
final question is from Rancher Ito 98
and the question is what are some of the
best news sources for cryptocurrency the
first thing that I would say is this
video series
just kidding obviously I love this video
series I'm really enjoying making it
it's about news that I think's notable
but there are so many different places
to go coin Telegraph is great coin desk
is also a fantastic website obviously
those are all places where there is
opinion you have to take that with a
grain of salt
but I would also say you can find a ton
of really good information on reddit if
you can get around all the arguments and
all the people that just want to troll
each other on reddit there's a ton of
cool stuff on there like the ask me
anything series that happens from the
etherium core developers I think one
happened the other day
and I'll be talking about in this video
so that just about wraps it up for our
questions again if you want your
questions answer to make sure you leave
in the comments or on Twitter
the first news item that I want to talk
about today is the always interesting
world of Bitcoin payments lightning labs
a start-up in the Bitcoin space that's
offering protocol level solutions that
allow merchants to accept Bitcoin using
the Lightning Network they are just now
finishing up their latest funding round
and for anyone who doesn't know what the
Lightning network is it's essentially a
transaction layer that sits on top of
the Bitcoin blockchain that can take
some of the load off of the blockchain
itself so it can scale more efficiently
into high transaction throughput in a
highly simplified example if you and I
did business with each other often and
we transacted with each other in Bitcoin
often we could open a lightning payment
channel with each other where we both
fund the channel with Bitcoin we
transact back and forth over a period of
time and these transactions are tracked
in that channel then when we close our
lightning channel those dozens if not
hundreds of transactions we did together
can theoretically be represented on the
Bitcoin blockchain network as one
transaction that reconciles the state of
our payment channel how much Bitcoin has
left my wallet and entered my wallet and
subsequently yours as well again this is
very simplified so this is not a perfect
analogy and there are a ton of different
Lightning Network implementations that
work differently however this helps you
get the general idea of what it's about
lightning is there to help Bitcoin scale
off chain let me know down in the
comments below what you think of
lightning and if you think it's good or
bad for Bitcoin I'm always curious to
hear about that now back to lightning
labs the firm just raised another ten
million round of funding from investors
after a lucrative seed funding round
that saw them raise two point five
million from notable investors like
charlie lee the creator of light coin
from jack dorsey CEO of square and
twitter and obviously a big-time bitcoin
believer jack dorsey is with these
resources lightning labs is looking to
double down on their existing product
loop that allows all types of merchants
to more easily manage their
in payment channels from both funding of
a channel and moving funds out of a
channel this continuous loop of Bitcoin
going into the channel as funding and
back out is what constituted the name of
the product loop essentially it's there
to prevent lightning channels from
getting backed up with too much or too
little Bitcoin flowing in and out of the
channel and keeping things balanced all
together for this service Lightning Labs
charges a tiny fee for each complete
loop within a lightning Channel and
that's how they make money this year and
well into next it's believed that
lightning labs is aiming to round out a
wide array of services in the realm of
bitcoins layer-2 solutions with their
lightning implementation already serving
as infrastructure for awesome services
like fold / fold app which lets you
spend and earn Bitcoin using lightning
on things like pizza Amazon coffee and
more which you can of course find in the
links down in the description below now
staying in the realm of Bitcoin for this
next story the next thing I wanted to
talk about is the proposed soft fork to
integrate a new Bitcoin improvement
proposal or several proposals containing
powerful updates to the signing
mechanism used in Bitcoin these
improvement proposals are being formally
proposed as a pull request on github by
Bitcoin core developer Peter will I
think while I'm not sure how to
pronounce his last name my apologies and
these changes will bring improved
scalability potentially and support
improved privacy for a variety of
different transaction types on the
network the first component of these
upgrades is in snore signatures which
are an alternative cryptographic
signature scheme to the standard
elliptic curve digital signature
algorithm otherwise known as ECDSA keys
that are used in Bitcoin today for
signing transactions and messages
without diving too deeply into the
painful math behind what makes the
proposed snort signatures better than
the original SEC P 256 k1 ECDSA
signature algorithm that we use today
what you really need to know is that
primarily at Schnoor signatures
offer the same type of reliable digital
signatures at a 12% storage space
discount in single signature
transactions meaning in short Schnoor
signatures can make transactions smaller
in size so that more of them can fit
inside blocks this is a good thing that
said the real benefits come when you
introduce Schnoor signatures to
multi-sig transactions which is a common
security measure for transactions if
Bitcoin used today basically multi-sig
enforces rules where you need three of
five or two of three valid private key
signatures to send Bitcoin using this
scheme with the standard Bitcoin keys in
a three of five multi-sig setup for
example you need at least three of those
private key signatures on one single
transaction for it to be valid that's
multi-sig that's around 210 bytes of
data which seems small at first but when
you think about it in the context of
bitcoins blocks those bytes add up fast
with Schnoor signatures key signature
aggregation is possible meaning you can
keep your 305 signing scheme but instead
of fixing three separate signatures to a
transaction you can produce one single
aggregated signature for the transaction
that takes up far less space that
reduces of course the storage size of
the transaction on the Bitcoin
blockchain significantly the bigger your
multi-sig scheme more keys that you
would theoretically need the more
savings you'll see versus the existing
bitcoin signing mechanism today now this
process also offers privacy benefits
consider the same exact three of five
multi-sig scheme to verify that three
signatures out of the total five have
been affixed to a transaction the
Bitcoin network must have knowledge of
all five public keys that were
originally part of that scheme and check
against them for the validation of the
transaction this is kind of inefficient
and invasive as all five parties in the
multi six scheme must now expose their
public keys in a transaction with
Schnoor the aggregation of public keys
allows them to create one single
signature that is valid for that
transaction without exposing all the
public keys individually this means that
using Schnoor a multi-sig transaction
can occur without all the parties
involved exposing their public keys this
makes all transactions look more or less
the same from an outsider's perspective
which helps
individual privacy of keys and
transactions I for one I'm all for this
upgrade to Bitcoin because if Kingdom it
can be done without a hard fork that
risks a chain split and it really seems
like a non-contentious set of code
changes so we shall see I know there are
a lot of maximalists out there who
believe bitcoin is perfect as is but I
think this is a really easy thing that
we can do to make Bitcoin better as a
protocol what do you guys think again
let me know in the comments down below
and moving right along let's talk about
Cardinal this week I listen to updates
from Charles Hoskinson the CEO of
cardano's a main development
organization IOH Kay and there are some
good stuff to unpack from that first and
foremost it brought to my attention that
this project is almost 5 years old which
blows my mind
Wow how time has flown Hoskinson opened
up about the methodology used to develop
the critical protocol level software
that underpins cardano's key features on
the road map like the impending upgrade
to staking and incentives with Shelley
and oh by the way for all of you
Cardinal fans I just launched a new
design in my merch shop I'll show it
here on the screen right now to honor
the Shelley release I'll link that up
below and of course I will leave a link
in the pin comment if you're interested
in that cool design shirt
what i ohk is done in development of
Cardno is to approach it like a true
computer science research effort in the
world of academia we're talking about
ground-up research into the mechanics of
the consensus mechanism that they were
proposing to formalize testing for each
step in development to test and
implementations over and over and over
again and this is a slow way of building
software but it is very effective when
done properly as much as Cardno is
lambasted for its sluggishness and
releasing updates and adhering to the
roadmap that they've pitched the
incentivized test net that's being used
right now as a soft pilot for staking
and incentives otherwise known as
Shelley has been a huge huge success
with over a thousand stake pools being
created by the community with these
stake pools groups of real users can
stake their ADA the native
cryptocurrency
Cardno to earn rewards and the right to
make blocks on the network the more you
stake the more likely you are to be able
to create a block and to earn rewards
this moved to a form of delegated proof
of stake if you will is going to be huge
for cardinal this process is running
live right now in a test net with real
users which harkens back to the point I
made prior about how they're testing
these development features they are
testing this stuff hard first in
simulated environments then adding new
features than bringing in real users and
then hopefully no later than q2 this
year in 2020 we will have the main net
version of these shellye features out
live for us to all use now I always say
this but I'd rather have battle-tested
code than half-assed code quality takes
time and I'm looking forward to Carano
delivering on these big features I am a
believer in Cardno
no doubt now in other news SEC chair
Hester Pearce often referred to as
crypto mom for her good-natured approach
towards cryptocurrency just announced
her proposition for the treatment of
cryptocurrency projects that could come
under SEC scrutiny she is proposing that
the SEC grant blockchain network
developers a three-year grace period to
build their product without having to
worry about filing for complicated
paperwork and registrations or fearing
regulatory enforcement from them as long
as they remain compliant with a handful
of basic regulations up front the
details of the criteria required to
qualify for this was still kind of
unclear to me in reading but I will keep
digging that said this does not mean
that token projects running icos or
other tokens sales are exempt from
securities laws for fraud laws for that
matter and something like this could
give rise to more and more scam projects
if not executed properly of course the
SEC does not want this overall the
response from the larger cryptocurrency
community has been very positive and I
personally share that sentiment of
course there are a plethora of folks who
simply cannot see past the reality that
regulation will always be a part of life
and are angry at any intervention from
any government body I don't really agree
with that way of thinking what we need
for the betterment of the innovative
technology space at large is clarity in
regards to regulation freedom to build
something without fear of legal action
and a two-way line of communication
between builders and regulators
otherwise this whole thing could come
crashing down because there's no
cooperation between the two so my hat
goes off to Esther Pierce for at least
trying to give developers and
environment as long as they follow basic
rules to build with freedom now in
regards to building with freedom this
brings us to a theory 'm 2.0 the other
day as i mentioned before there was an
reddit ask me anything with core team
members of aetherium 2.0 and aetherium
for that matter like vitalik beuter n'
and a bunch of other folks they answered
questions about upcoming updates and a
whole bunch more in that Q&A session
aetherium 2.0 researcher justin drake
made a claim that he is 95 percent
confident that we will see the beacon
chain the first step in getting the full
sharded proof of stake network live in
2020 he went on to say that the target
release date for the etherium 2.0
blockchain is probably gonna be around
July 2020 which is near the fifth
anniversary of aetherium launch in the
first place in my mind it's interesting
to see how this is being talked about
95% confidence seems to me that the test
net performance is going really well but
they're worried about being totally
committed to launching by a certain date
I don't really blame them on that this
new launch will result in two etherion
block chains living in harmony for at
least the short term until they can move
the existing aetherium 1.0 block chain
over to the new aetherium 2.0 block
chain that is no easy task and from what
I've read it seems very likely that the
etherium 1.0 chain will be merged in is
almost the library of transaction
receipts and rather than going the
interoperability route if all goes well
we'll likely see the beacon chain live
this summer and then following that
we'll see sharding where the etherium
2.0 network is broken into 64 or so
distinct mini block chains that can
process transactions in parallel for
increased scalability
I am personally really excited and ready
to test this out and I'm curious to know
if you will be staking your ether this
summer if we do indeed see the beacon
chain and I want it to also give you a
quick update on chain link and icon 2
projects that I think have some real
value in the space for those who do not
know chain link is a decentralized
oracle solution designed to bring
trusted external data into smart
contracts on the blockchain right now
they have a working product on the
etherion blockchain and in some other
networks at least they're in progress if
you want to learn more about Oracle's
remember you can check out that video
down in the description box but let's
continue now icon on the other hand is
an interoperability focused blockchain
project that's developing a protocol to
connect a multitude of different block
chains together like aetherium AOS etc
on their own public chain now I also
have a video about icon that I'll link
up above and in the description if you
want to learn more when the news came
out that icon and chain link were going
to partner I was very curious about this
and I still am after reflecting on it
for a bit I'm actually really optimistic
that this is one of the best moves both
projects could have ever made with icons
cross blockchain communication protocol
coming into focus for 2020 as a viable
solution for real-world use integrating
chain links external facing data sources
in Oracle's could be huge by
prioritizing icon as an integration
partner upfront chain link can leverage
icons cross blockchain communication
protocol to put their Oracle's in more
developers hands across potentially
dozens of networks in the public
blockchain world so instead of custom
developing integrations with chains like
gos zelicah Cardno
etc it's likely if not very likely that
at least some of these will be able to
ingest data from chain link via the icon
public network without having to
integrate at all from scratch because
they can use this cross block chain
platform native to icon so all in all I
think this is a fantastic move because
at this point now this means that icon
wins because it's going to drive more
attention and make their product more
valuable and for chain link in one fell
swoop they're going to be able to
potentially double triple or even
quadruple the number of people that can
access their Oracle's and as always guys
you can always find previous crypto over
coffee episodes right here on the screen
at the end of the videos I'm super
appreciative of all the time that you
spend here and I would ask that if you
haven't already please do subscribe for
future content thanks so much guys and
until next week Cheers

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