Welcome to The Protocol, CoinDesk’s weekly review of significant stories in cryptocurrency technology development.
In this issue:
- Can Proposed Rollups Address Ethereum’s Challenges?
- Lido Goes Modular
- Uniswap Launches Unichain
- Upcoming Pectra Upgrade
Network News
BASED ROLLUPS TO THE RESCUE: In recent years, Ethereum has made strides toward a layer-2 scaling roadmap, which has promoted the creation of auxiliary networks known as “layer-2 rollups.” These rollups assist in scaling Ethereum by offloading transactional activities, consequently reducing fees and enhancing speeds. However, the booming number of layer-2 networks has resulted in fragmentation and hindered communication between them, making asset and data transfer complicated and costly. A few Ethereum developers are advocating for a new approach toward interoperability and security through “based rollups.” Unlike typical rollups that process transactions on a separate layer, based rollups transfer execution responsibilities to Ethereum’s primary network. This innovative method utilizes Ethereum’s network of validators for inherent sequencing instead of relying on a centralized entity. These rollups encompass platforms like Optimism, Arbitrum, and zkSync.
— Margaux Nijkerk Read more.
LIDO GOES MODULAR: Lido, the primary staking service for Ethereum, is revamping its platform through modular “vaults” designed to support various institutional needs and complex staking strategies. By introducing customizable components, Lido aims to enhance user flexibility while streamlining liquid staking, allowing easier entry and exit for investors.
— Margaux Nijkerk Read more.
UNICHAIN FINALLY: Uniswap Labs recently announced the go-live of Unichain, its highly anticipated layer-2 network built on Optimism’s technology. This network promises to deliver improved transaction speeds and reduced costs while creating new revenue streams through network fees.
— Margaux Nijkerk Read more.
Money Center
El Salvador Dispatch: A local community has embraced Bitcoin, making Berlín a notable example of El Salvador’s growing Bitcoin-powered economy. “Bitcoin City already exists. It’s called Berlín,” remarked a resident.
— Tom Carreras Read more.
LinksDAO Launches on Base: After initially selling NFTs, LinksDAO is expanding its offerings with a new community token.
Regulatory & Policy: SEC’s Hester Peirce announced that many memecoins may likely fall outside the regulatory body’s jurisdiction.
Calendar
- Feb. 19-20, 2025: ConsensusHK, Hong Kong.
- Feb. 23-24: NFT Paris
- Feb 23-March 2: ETHDenver
- March 18-19: Digital Asset Summit, London
- May 14-16: Consensus, Toronto.
- May 27-29: Bitcoin 2025, Las Vegas.
