Welcome to The ProtocolCoinDesk’s weekly roundup of the biggest stories in the development of cryptocurrency technology. I’m Ben Schiller, Opinions and Features Editor at CoinDesk.
In this number:
- HyperLiquid responds to criticism about decentralization
- StarkWare launches application chains on Starknet
- Arbitrum deepens its ties with the South Korean Lotte group
- Do Kwon’s criminal trial scheduled for 2026
- Pyth Network Partners with Revolut on DeFi Data Deal
- Ripple Aims to Boost Stablecoin Utility in Chainlink Deal
- AI Coins Fail to Match 2024 Performance, Despite Bullish Outlook
This article appears in the latest issue of The Protocol, our weekly newsletter that explores the technology behind cryptocurrencies, block by block. Sign up here to receive it in your inbox every Wednesday.
network news
HYPERLIQUID REVIEW: HyperLiquid, a major up-and-coming company in the world of decentralized finance, came under fire this week over claims that the network is too centralized and difficult to work with. HyperLiquid is best known for its leading decentralized exchange and recently launched a layer 1 blockchain – all the startup offers to, according to its eye-catching web copy, eventually “host all finance.” Despite earning praise for its fast and easy-to-use exchange interface, HyperLiquid has been criticized for, among other things, operating a closed-source code base. According to a widely shared must be executed. the chain. Benbrik also expressed concern that HyperLiquid’s highly concentrated token supply (and its process for supporting validators on its L1 chain) makes the chain centralized and vulnerable to failures. “Hyperliquid should improve transparency, decentralize staking, implement a fair validator selection process, and engage more with third-party validators,” Benbrik wrote. The complaints come on the heels of a flood of positive media attention toward HyperLiquid following HYPE’s successful airdrop in November. It hasn’t all been plain sailing for the startup, however, as scrutiny arose in December following reports of possible North Korean activity on the network, interpreted by some as a sign that the regime known for its crypto hacking efforts I could have done it. HyperLiquid in its sights. HyperLiquid has rejected North Korean security concerns and recently addressed criticism over centralization and closed source in an X thread, stating that the criticism largely arose from “misconceptions” about its technology. Read more. –Sam Kessler
SOLANA’S BENDANCER CONTINUES FORWARD: Solana is moving forward with its next-generation blockchain client, “Firedancer,” pushing validators running the chain to adopt a simplified version of the upgrade ahead of a broader, yet-to-be-scheduled official release. “Firedancer proponents believe the software, developed by the crypto arm of trading giant Jump, will give Solana an unbeatable advantage in the cryptocurrency race to attract global financial markets to blockchains,” writes Danny Nelson from CoinDesk. “They point to its theoretical speed: one million transactions per second, orders of magnitude faster than any blockchain-based system today.” –Sam Kessler
STARKWARE APP CHAINS: Starknet, the layer 2 blockchain on Ethereum known for its adoption of zero-knowledge (ZK) cryptography, is adding application chains. StarkWare, the lead developer of Starknet, told CoinDesk that its “SN Stack” will allow developers to easily create blockchains tailored to specific crypto use cases. Read more
ARBITRUM-a-LOTTE: Arbitrum, Ethereum’s largest Layer 2 network, plans to deepen ties with Lotte Group, the multibillion-dollar South Korean conglomerate known for its extensive portfolio of shopping malls, media companies and entertainment properties. Offchain Labs, the developer behind Arbitrum, and the Arbitrum Foundation, the nonprofit organization managing the project’s development, said a financial deal is in the works that would solidify Arbitrum as the primary blockchain infrastructure provider for “Caliverse.” “, Lotte’s metaverse gaming platform. . Read more
AVALANCHE UPDATE: Avalanche, now the 10th largest L1 by total value locked (TVL), has activated its highly anticipated Avalanche9000 update, marking its biggest technical changes since its launch in 2020. The network has been preparing these changes for months, with new features that will reduce the costs to send transactions, operate validators and create applications on the network. Avalanche leaders said the update is intended to appeal to developers, encouraging them to create custom blockchains using its technology, known as subnets or “L1s.” Read more.
TEST KWON: Terraform Labs co-founder and former CEO Do Kwon’s criminal fraud trial in the US has been tentatively scheduled for January 2026, allowing prosecutors and Kwon’s defense attorneys to sift through the “massive” trove of six terabytes of data expected to be produced during discovery. process. During an initial hearing in Manhattan this week, lead prosecutor Jared Lenow told the court that the government expected to face additional delays due to challenges accessing encrypted information and unlocking four cellphones provided by Montenegrin authorities when they extradited Kwon to the U.S. .USA on December 31. . Lenow added that the government should also translate the material taken from Kwon’s native Korean. Read more.
PYTH PARTNERS: Blockchain oracle company Pyth Network has partnered with neobank Revolut to move data from digital banking to decentralized finance. Revolut will provide data for over 500 markets, including currencies, stocks and commodities. Revolut also runs a crypto exchange, although data on volume is not published. Pyth competes with ChainLink and aims to provide accurate prices for DeFi protocols. It airdropped its native token (PYTH) in 2023 and has a value of $7.5 billion secured in its oracle, according to DefiLlama. Pyth also receives data from crypto exchanges Bitstamp, Bybit, and Binance, as well as various trading companies such as Jane Street and Cumberland DRW. Read more.
AI COINS: AI crypto tokens are failing to live up to their lofty 2024 goals even though the recent Nvidia (NVDA) conference generated bullish sentiment among AI stocks in traditional markets. Last March, the NEAR token doubled in the run-up to Nvidia’s annual conference, gains that were reflected across the broader AI crypto market. Fetch.AI (FET), chart (GRT), and singularityNET (AGIX) all posted major upside rallies in unison with the conference. Why are AI tokens losing momentum? One reason: the emergence of AI agent tokens. Read more.
money center
More sovereigns to buy BTC
Companies too
Regulation and policy
Calendar
- January 7-10, 2025: CES, Las Vegas
- January 20-24: World Economic Forum, Davos, Switzerland
- January 21-25: WAGMI conference, Miami.
- January 24-25: Bitcoin Adoption, Cape Town, South Africa.
- January 30-31: PLAN B Forum, San Salvador, El Salvador.
- February 1-6: Satoshi Roundtable, Dubai
- February 19-20, 2025: ConsensusHK, Hong Kong.
- February 23 and 24: NFT Paris
- February 23 to March 2: ETHDenver
- March 18-19: Digital Asset Summit, London
- May 14-16: Consensus, Toronto.
- May 27-29: Bitcoin 2025, Las Vegas.
