TheDinarian
News • Business • Investing & Finance
Fantom Foundation Launches Testnet for Fantom Sonic
October 24, 2023
post photo preview

We are thrilled to announce Fantom Sonic, the latest breakthrough upgrade to Fantom that will scale the network to new heights.

With a brand-new virtual machine, improved database storage, and optimized consensus, Sonic is anticipated to achieve 2,000+ transactions per second (TPS) at an average finality of one second while consuming a fraction of the storage used by its predecessor, Opera. The upgrade is the latest step in Fantom’s mission to improve its underlying platform without resorting to sharding or additional layers.

Today, we are releasing access to the Fantom Sonic testnet environment to give users and developers a first-hand experience of the groundbreaking speed offered by the upgrade before its mainnet release, which is scheduled for spring 2024. Scroll further to learn more about Sonic and instructions on how to use the testnets.

What is Fantom Sonic?

Fantom Sonic is the name that covers the new Fantom technology stack, replacing the previous Opera. The new technology stack is included in the new Fantom Sonic Client that validators and other nodes will run to power the network, which comprises mainly the Fantom Virtual Machine, Carmen database storage, and an optimized Lachesis consensus mechanism. In other words, Sonic is the next iteration of the Fantom network, with no hard fork required for the upgrade. Existing smart contracts, services, and tools on Fantom Opera should be fully compatible with mainnet Fantom Sonic.

In unison, these three upgraded components elevate Fantom to unprecedented levels and allow the network to achieve an anticipated 2,000 TPS at a finality of around one second with up to a 90% reduction in storage, putting Fantom far ahead of its peers. Learn more about these components in technical detail further below.

As users continue to embrace blockchain-powered applications, a single popular application can slow an entire network. Sluggish performance of the network prevents the overall adoption of emerging decentralized applications. With its innovative technology, Fantom will allow new markets to adopt blockchain technology previously hindered by limited transaction throughput and slow finality.

We envision a new era of DeFi platforms, blockchain games, high-frequency oracles for perpetual trading, and many other applications that can leverage the speed and scalability of Sonic. Additionally, due to the significantly reduced storage requirements, it will be far more affordable and accessible to run a node on Fantom to partake in network consensus or provide data to dApps.

Sonic testnet environment

The Fantom Sonic testnet environment consists of two separate testnets to demonstrate the upgrade before its mainnet release. The closed testnet aims to showcase the maximum theoretical limits of Sonic, whereas the open testnet is interactive, allowing any user to experience Sonic directly.

Closed testnet

The Sonic closed testnet is observable to the public but does not allow users to submit transactions. A web dashboard shows the maximum performance of Sonic, such as transactions per second, time to finality, average block time, and more.

The dashboard shows that the closed testnet Sonic can process around 2,048 TPS with end-to-end transaction confirmation times (finality) of around 1.1 seconds. At the time of writing, the testnet is processing over 175 million transactions per day, showing the stability of the network even when driven to its limits.

In the closed testnet, a transaction feeder submits synthetic transactions and drives the network to its maximum performance. The transaction feeder is throttled when transaction finality rises beyond roughly 1.1 seconds, which occurs when transactions per second surpass roughly 2,048.

There is no room for public interaction in this testnet setup as the transaction feeder drives the network to its maximum performance. The synthetic transactions resemble transactions on the current Fantom mainnet with an average of 210,000 gas. The workload is distributed roughly as follows:

 

The closed testnet uses an evenly spread stake of 10 million FTM per validator. With 21 validators, the total stake is 210 million FTM. The required consensus quorum is two-thirds of the validators plus one, with a stake of 140,000,001 FTM. The consensus mechanism requires at least 15 validators to confirm blocks for this setup.

We will compare this to the Fantom mainnet, on which the stake is non-uniformly distributed. The total stake on September 25, 2023, at 2:00 PM UTC was 1,379,985,181 FTM. With these numbers, a quorum is reached by a minimum of 919,990,122 FTM. The combined stake of the top 14 validators is 926,970,795 FTM, which was sufficient to confirm blocks with one less validator than the Sonic closed testnet. As such, the closed testnet mimics the consensus of mainnet closely to demonstrate a realistic performance.

With this setup, the closed testnet achieves above 2,000 TPS with a finality of around 1.1 seconds and over 400 million gas per second. This is far beyond the achievable performance of the current Fantom mainnet, which sits at around 30 TPS. There will be a significant reduction in disk space requirements for validators and archive nodes. Currently, for approximately 518 million transactions, an offline pruned validator requires 1,194 GB (i.e. offline pruning removes historical states by stopping the validator), whereas Sonic with online pruning requires 351 GB only. Similarly, archival nodes require 10,893 GB on Opera but only 1,000 GB on Sonic.

We will upgrade and maintain the closed testnet with Fantom’s latest technology regularly. Hence, the closed testnet will be reset every two weeks.

Open testnet

The Sonic open testnet allows anyone to interact with Sonic by submitting transactions and experiencing the true speed the new Fantom upgrade offers.

Similarly to the closed testnet, the open testnet has a transaction feeder that submits synthetic transactions. However, it submits 130 TPS at an end-to-end finality of around 0.6 seconds, which leaves ample throughput for user interactions.

The open testnet dashboard allows users to search for addresses, transactions, and blocks. Note that the open testnet’s history will be retained for longer than the closed testnet’s history. Furthermore, it is possible to deploy dApps on this testnet with a few limitations: the client source code currently is unavailable, and there is no full explorer similar to FTMScan and no transaction tracing support on our public RPCs. 

The tutorial below covers the instructions to interact with the open testnet.

How to use Sonic testnet

Follow this tutorial to unveil the capabilities of Sonic and experience the next generation of blockchain technology. We use MetaMask in this tutorial, but any wallet that can mimic MetaMask will work.

  1. Connect wallet
    1. Go to the Sonic open testnet dashboard
    2. In the top-right corner, click on Connect
    3. Choose your desired wallet account and connect
    4. Go to the account page, unless automatically redirected
  1. Configure network
    1. In the Network section, click on Add to MetaMask
    2. Ensure the network details in your wallet match those on the web page
    3. Approve the action in your wallet and click Switch network when prompted
  1. Get testnet tokens
    1. In the Faucet section, choose a token to request
    2. Click Request and sign the transaction in your wallet
    3. We recommend requesting Fantom for gas and various other tokens to test the swapping feature
  1. Use Sonic Trade
    1. In the Sonic Trade section, choose a token to swap for another token
    2. Click on Swap and confirm the transaction in your wallet
    3. Witness the incredible speed of Sonic!

Behind the scenes

A range of technological innovations have been introduced to enable Sonic to scale Fantom beyond its current potential. This section will provide a more in-depth technical overview of these innovations.

Fantom Virtual Machine

Sonic uses a new virtual machine that achieves superior execution performance compared to the previous Ethereum Virtual Machine implementation.

The Fantom Virtual Machine (FVM) converts EVM bytecode of smart contracts seamlessly into a new virtual machine format on the fly (while executing transactions). Deployed smart contracts that are available only in EVM bytecode remain executable without retranslating the high-level source code (e.g. Solidity) into the new virtual machine format.

The new virtual machine format accelerates the execution of single operations and permits super instructions, optimized bundles of commonly occurring instruction patterns. Super instructions comprise multiple instructions that are consolidated and executed as one instruction, reducing the instruction dispatch time of the virtual machine. The conversion from EVM bytecode to the new format of the FVM is cached, such that subsequent executions of the same code reuse the previously converted EVM bytecode, saving execution time.

The FVM supports caching of cryptographic hashing for the EVM instruction SHA3. Cryptographic operations, especially hashing, are computationally expensive. Repetitive calculations of the identical hashes can occur due to contract operations, state changes, or transaction verifications. By caching previously computed hashes, the FVM can bypass the need to recalculate the same values, saving time and resources. 

Additionally, the FVM supports the caching of JUMPDEST analysis results. In the virtual machine, there are special instructions called JUMP and JUMPDEST. The JUMP instruction allows the code to leap to different locations, while JUMPDEST marks safe places for these jumps to land. The JUMPDEST analysis pre-scans the bytecode to map out all these safe landing spots. By doing so, the FVM ensures that during execution, any jumps are directed only to legitimate and safe points in the code, optimizing performance and increasing security against potential malicious manipulations.

Block processing intense operations, such as synchronizing a new validator with up to 65 million blocks from the first block, can take up to four weeks with Opera. Sonic’s advanced block processing, which includes the FVM and new database storage, can synchronize a new validator in less than two days entirely for the full range from scratch.

Carmen database storage

Sonic uses a new database storage, called Carmen, which reduces node storage requirements and improves performance. Carmen is a new StateDB that stores the world state of Fantom’s blockchain. The world state contains account information, such as balance, nonce, EVM bytecode, and persistent storage of smart contracts.

Carmen features implicit live pruning. Pruning refers to discarding historical data that is no longer needed, which is essential due to a growing blockchain with increasing storage demands. Previously, pruning required nodes to be offline, which burdened validators with financial and operational risks due to their temporary lack of network rewards and the pressure to restart the client software successfully after offline pruning. However, unlike on Opera, validators now can leverage live pruning to remain operational around the clock, preventing disruptions. Consequently, validators will require smaller disks that can yield savings of up to 65% using Sonic’s new database storage.

We achieve live pruning by specializing the database into two types: the LiveDB and the ArchiveDB. The LiveDB contains the world state of the current block only, whereas the ArchiveDB contains the world states of historical blocks of the blockchain. The diagram below shows the interaction of LiveDB and ArchiveDB with the block processing.

The FVM interacts with the LiveDB and the ArchiveDB. As mentioned, the LiveDB contains only the current world state and is optimized for progressing the world state from one block to the next. Validators only have a LiveDB but no ArchiveDB. The FVM reads and writes the data in the LiveDB. In contrast, archive nodes have the LiveDB and ArchiveDB to stay synced. They process requests of historical states via the RPC interface. Its data is read only by the RPC server, and the FVM adds the world state of new blocks.

This specialization of LiveDB and ArchiveDB has been a performance-critical insight for an efficient StateDB design and implementation. We discovered that the access patterns of validators and archive nodes require different implementation techniques. So far, we have developed five evolutionary steps, so called schemas, for LiveDB and ArchiveDB, which differ in how the world state is structured and stored on disk for LiveDB and ArchiveDB, respectively. The version deployed for the Sonic testnet, Schema 3, offers superior storage performance compared to Opera’s MPT data structure.

Schema 3 uses flat storage, which stores data sequentially instead of tree-like or hierarchical structures like the ones used in the MPT. Its flat storage approach simplifies data retrieval. Importantly, Schema 3 still provides cryptographic signatures for a world state and archive capabilities using an incremental version of a prefix algorithm. All schemas utilize a native disk format rather than storing the world state indirectly via key-value stores (e.g. LevelDB/PebbleDB).

Lachesis consensus mechanism

Lachesis is Fantom’s aBFT consensus mechanism. A consensus mechanism is the engine that receives user transactions and serializes them to form blocks. Lachesis has a peer-to-peer module that exchanges events and a transaction pool module for collecting transactions from users and queuing them for validators.

Sonic continues to use the Lachesis technology of Opera, but it has vastly improved the transaction pool for collecting transactions of users. Optimizing and fine-tuning the peer-to-peer network was essential for sustaining such high transaction throughput with a very low time to finality.

Sonic and Opera comparison

A summary of the key differences between Fantom Sonic and the Opera mainnet is shown below.

Summary of Sonic

As shown by the performance of the Sonic closed testnet, the mainnet release will bring a groundbreaking blockchain experience, which we have summarized below for a quick overview.

Sonic is anticipated to achieve beyond 2,000 TPS at a finality of around one second. However, as this is the upper limit, the network will offer a far quicker sub-second finality under real-world circumstances. Storage requirements are reduced by up to 90%, which reduces validator node size from around 2,000 GB to 300 GB and non-pruned archival node size from above 11 TB to below 1 TB.

The storage reductions will allow anyone to launch validator nodes at far lower costs with vastly improved synchronization times and live-pruning support. The Fantom Foundation, and other relevant parties, can deploy archival nodes in approximately 36 hours, which previously would take weeks. If a genesis file for a certain block height is available, or an actual copy of an archive StateDB, the synchronization will be even shorter.

The Sonic mainnet is scheduled for spring 2024, which will transport Fantom into a new era of blockchain technology.

Link

 

community logo
Join the TheDinarian Community
To read more articles like this, sign up and join my community today
0
What else you may like…
Videos
Podcasts
Posts
Articles
🚨 A Senior UAE Official Has Forecasted...👀

🇦🇪 The United Arab Emirates has taken a decisive step that the United States has been reluctant to pursue.

👉 “Within the next two years, cryptocurrency will be used more frequently than traditional currencies like the dollar or dirham, even for everyday purchases such as coffee and groceries.” 🏦☕🛒

It is worth noting which cryptocurrencies offer transaction fees that are virtually negligible. 😏

The official further stated: “Mark my words, I believe in actions, not just words.”

00:01:00
The Digital Euro 🇪🇺 Is Ready 💶🌍 Via XRP &XLM

The legislative process is complete, and the Digital Euro 🇪🇺 is ready for real time use and October 2025 is the big roll out.

Around this time Europe will also be releasing their
•Request2pay
• SEPA credit transfer rulebook
•PSD3 instant payments
•Verification of payee
•TIPS multi-currency phase 1

The Digital Euro will be minted on #XRPL and #Stellar

OP: MRMANXRP

00:00:27
Tesla isn’t aiming to simply compete with Uber 👀

Tesla isn’t aiming to simply compete with Uber—they’re building an “Airbnb for cars.” Elon Musk has explained that Tesla will soon launch a self-driving fleet sourced from both company-owned vehicles and customer-owned Teslas that can be “rented out” when parked.

Unlike Uber, which connects riders with human drivers, or Airbnb, which matches guests with spare bedrooms, Tesla’s model will match passengers with autonomous vehicles. This eliminates the middleman, extra fees, and gives Tesla full control over hardware, software, data, and payments.

This approach signals a broader shift: the next wave of AI will be about physical agents that move goods and people, manage logistics, and even energy grids. Companies that control the entire technology stack—from chips to cloud to real-world deployment—won’t just disrupt existing industries; they’ll rewrite the rules of asset ownership and revenue sharing.

Ultimately, this means rethinking every business model built on ...

00:01:21
👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading
$VELO ALERT: The integration of Shopify into Sanity’s headless CMS

Check this out... Talk about UTILITY! 👇

The integration of Shopify into Sanity’s headless CMS—especially under the OmniPoints umbrella—signals a massive step toward seamless, scalable commerce.

When you combine $VELO with a content platform trusted by giants like Puma, AWS, and #Google Cloud, AND you unlock compatibility with one of the world’s biggest e-commerce solutions (Shopify), you’re looking at exponential reach for both merchants and users.

If OmniPoints can truly bridge $VELO with Sanity-powered Shopify stores or POS systems, it’s not just an incremental upgrade—it’s opening the door to real-world utility and mass adoption potential. Imagine frictionless crypto payments, loyalty points, and dynamic content all managed in one flexible ecosystem. The potential for onboarding merchants is enormous!

Keen to hear more updates from the team—this is definitely one to watch. 🔥 GOT #VELO?

https://x.com/Omni_Points/status/1928437991095345590

🚨 JUST ANNOUNCED By Uphold!

You asked, we listened.

Uphold is exploring ways to unlock yield on $XRP, including testing XRP staking through @FlareNetworks FAssets.

Welcome to the world of smart contracts and DeFi opportunities, #XRPArmy.

Stay tuned for the beta.

https://x.com/UpholdInc/status/1928511793694986338

XDC Network Has Partnered With Bitso 🚀

XDC Network has partnered with @Bitso Business to deliver fast, low-cost cross-border payments from the United States to Mexico.

With over $63 billion in inbound remittances, Mexico ranks second globally, while the United States leads the world in outbound remittance volume, with an annual total exceeding $70 billion. This is a vital corridor—and this blockchain-powered partnership is making it easier and cheaper for businesses and individuals to send money across borders.

🔹 Real-time USD ⇄ MXN conversion
🔹 Ideal for SMEs and fintechs
🔹 ISO 20022-compliant infrastructure
🔹 Built for scalability and inclusion

👉 Learn more about this collaboration:
https://invezz.com/news/2025/05/29/xdc-network-partners-with-bitso-business-to-power-cross-border-payments-from-the-us-to-mexico/

post photo preview
post photo preview
🚀Comprehensive Overview of Reggie Middleton's Patents
Pioneering Innovations in Decentralized Finance and Blockchain Technology

Key Takeaways

  • Innovative DeFi Solutions: Reggie Middleton has developed groundbreaking technologies that facilitate trustless and low-trust value transfers, revolutionizing decentralized finance.
  • Robust Patent Portfolio: His patents cover a wide range of applications, including blockchain infrastructure, peer-to-peer transactions, digital asset security, and regulatory compliance.
  • Legal and Market Impact: Middleton's patents have significant legal standing, demonstrated by successful defenses against challenges and high-profile lawsuits, positioning him as a key player in the FinTech industry.

Introduction

Reggie Middleton is a distinguished innovator in the fintech and blockchain sectors, recognized for his extensive portfolio of patents that address critical challenges in decentralized finance (DeFi) and trustless value transfers. His work has been instrumental in advancing blockchain technology, enhancing security, scalability, and accessibility within decentralized ecosystems.

Overview of Reggie Middleton's Patent Portfolio

Trustless Value Transfer Systems

Middleton's patents in this category focus on enabling secure transactions between parties with minimal or no trust. Utilizing advanced cryptographic protocols and blockchain technology, these systems eliminate the need for intermediaries, thereby reducing costs and increasing transaction efficiency.

Mechanisms and Applications

His innovations include systems for decentralized exchanges, peer-to-peer lending platforms, and digital marketplaces. An exemplary application is the facilitation of currency exposure hedging, allowing users to swap risks (e.g., AUD/USD) via Bitcoin without prior trust between parties.

Blockchain Infrastructure Enhancements

Middleton has developed solutions that address scalability, interoperability, and consensus mechanisms within blockchain systems. These enhancements are crucial for handling high transaction volumes and ensuring seamless interaction between different blockchain networks.

Key Innovations

His patents introduce scalable blockchain infrastructures capable of supporting enterprise-level applications and multi-chain platforms. By improving consensus algorithms, Middleton's work ensures faster and more secure transaction validation processes.

Peer-to-Peer Transactions

The patents in this domain enable direct asset exchanges, such as cryptocurrencies and non-fungible tokens (NFTs), through smart contracts and decentralized networks. These innovations are foundational for modern DeFi platforms and decentralized governance systems.

Practical Implementations

Middleton's technologies facilitate seamless peer-to-peer transactions, enhancing user autonomy and reducing dependency on centralized institutions. This is particularly evident in decentralized exchanges and governance frameworks where direct asset management is paramount.

Digital Asset Security

Ensuring the security of digital assets is a cornerstone of Middleton's patent portfolio. His solutions include advanced storage systems and multi-signature wallets designed to protect against cyber threats and unauthorized access.

Security Solutions

Implementing cold storage systems and multi-signature protocols, Middleton's patents provide robust defenses against potential security breaches, safeguarding cryptocurrencies and other digital assets from malicious attacks.

Regulatory Compliance and Central Bank Digital Currencies (CBDCs)

Middleton's patents also address the growing need for regulatory compliance within digital financial systems. His frameworks for issuing and managing CBDCs align with existing regulatory standards, facilitating the integration of government-backed digital currencies into the broader financial ecosystem.

Compliance Frameworks

These technologies ensure that digital currency systems adhere to legal requirements, enabling smoother adoption and acceptance by both financial institutions and regulatory bodies.

Legal and Market Impact

 

Patent Enforcement and Legal Challenges

Reggie Middleton has actively defended his intellectual property, most notably filing a $350 million lawsuit against Coinbase Inc. for alleged patent infringement. The Patent Trial and Appeal Board (PTAB) has upheld the validity of his patents, denying Coinbase's Inter Partes Review (IPR) petition, thereby reinforcing the strength and enforceability of his patent claims.

Market Position and Influence

Middleton's patents are considered some of the most powerful in the FinTech industry, covering essential technologies that underpin DeFi and blockchain operations. With approximately 90% of blockchain patent applications typically rejected by the USPTO, Middleton's successful patents distinguish him as a leading innovator in the space.


Future Directions

Integration of AI in Decentralized Systems

While current patents focus on human-driven transactions, the foundational technologies developed by Middleton provide a robust framework for future integration of artificial intelligence (AI). Potential applications include automated trading systems, intelligent asset management, and enhanced decision-making processes within DeFi platforms.

Expansion into Global Markets

With patents protected in multiple jurisdictions, including the U.S. and Japan, Middleton is well-positioned to expand his technological solutions globally. This expansion will likely involve adapting his systems to comply with diverse regulatory environments and addressing region-specific financial challenges.


Detailed Patent Analysis

Technological Innovations

Middleton's patents encompass a range of technological advancements designed to enhance the functionality and security of decentralized financial systems. These include but are not limited to:

  • Proof of Stake (PoS) and Proof of Work (PoW) Enhancements: Improved algorithms for validating transactions and securing blockchain networks.
  • NFT Transfer Mechanisms: Secure and efficient methods for transferring non-fungible tokens, ensuring authenticity and ownership integrity.
  • Adaptive Security Protocols: Systems that dynamically adjust security measures based on transaction parameters and threat assessments.

Scalability and Interoperability

Addressing scalability, Middleton's patents introduce solutions that enable blockchain networks to handle increased transaction volumes without compromising performance. Additionally, his work on interoperability protocols facilitates seamless communication and transaction processing across different blockchain platforms, fostering a more integrated and efficient decentralized ecosystem.

Regulatory Alignment

In response to the evolving regulatory landscape, Middleton has developed frameworks that ensure digital financial systems comply with existing laws and standards. This alignment is crucial for the widespread adoption of decentralized finance solutions and the issuance of Central Bank Digital Currencies (CBDCs).

Conclusion

Reggie Middleton stands out as a pivotal figure in the FinTech and blockchain industries, with a patent portfolio that not only addresses current technological challenges but also lays the groundwork for future advancements in decentralized finance. His innovations in trustless value transfers, blockchain scalability, and digital asset security have significant implications for the financial ecosystem, reinforcing the importance of robust intellectual property in driving technological progress. Through sustained legal defense and strategic market positioning, Middleton continues to influence the direction and adoption of decentralized financial systems globally.

Source

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 The Dinarian

Read full Article
post photo preview
⚖ SEC: many crypto staking services aren’t securities ⚖

The Securities and Exchange Commission (SEC) yesterday clarified that most staking services don’t involve securities, resolving a major uncertainty that has hung over the crypto industry. The guidance provides regulatory clarity for major platforms like Coinbase, Kraken, and Lido, which collectively handle billions in staked assets.

The ruling removes a regulatory cloud that has limited institutional adoption of staking services. Without this clarity, staking service providers faced potential enforcement action and costly compliance requirements designed for traditional securities.

Blockchain staking typically involves locking tokens to secure the network and earning a reward in return. The least contentious option would be someone who operates a node themselves, keeping custody of their assets and staking directly.

However, there’s been a major question mark hanging over staking-as-a-service, in which a third party performs the staking on behalf of the token owner. This is hugely popular because on Ethereum the minimum staked amount is 32 ETH (over $80,000 at current prices) and doing it yourself requires appropriate hardware and technical knowledge.

How the SEC reached its decision

For assets that aren’t obviously securities, the Howey legal test is used to establish whether there’s an “investment contract.” A key test is whether the return is dependent on the entrepreneurial efforts of someone other than the investor.

Applying this test to staking services, the SEC concluded that the staking service provider is simply providing an “administrative or ministerial activity” rather than an entrepreneurial one and doesn’t set the rate of return earned by the investor, although they deduct fees.

The SEC takes the same view whether the investor retains custody of their tokens or the service provider additionally provides custody. If a custodian is involved, the note only covers the situation where the investor chooses how much to stake.

However, the devil is in the details. For example, the opinion does not cover liquid staking (where the token holder receives another token while the main tokens are locked), re-staking or liquid re-staking.

One commissioner strongly disagrees

This interpretation faces significant pushback from Democrat Commissioner Caroline Crenshaw, who noted that these are simply staff opinions and don’t affect the law. She went as far as saying that in authoring the note, the Division of Corporate Finance was channeling the adage “fake it ’till you make it.”

In her view, the note inadequately justified the legal interpretation and she believes the conclusions conflict with the law. However, she acknowledged that certain bare bones staking programs may not involve an investment contract.

Since the change in administration, the SEC has published several staff notes related to digital assets, the first of which clarified that solo and pooled mining for proof of work blockchains will generally not be considered to involve securities.

While this is staff guidance rather than formal regulation, it signals the SEC’s likely enforcement approach under the new administration. It marks a significant shift in how crypto staking will be regulated, though the strong dissent suggests this interpretation could face challenges if the political landscape changes again.

The newly proposed digital asset legislation, the CLARITY Act, doesn’t explicitly cover staking. However, it includes explicit regulatory relief regarding blockchain-linked tokens, making such guidance less vulnerable to future political shifts by providing statutory protections for digital commodities that meet specific criteria.

Source

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 The Dinarian

Read full Article
post photo preview
XRPL Unleashes Batch Power—What’s Hidden in the 2.5.0 Rollout?
XRPL prepares for its 2.5.0 upgrade, introducing batch transactions and advanced features to challenge Ethereum and Solana.

Highlights:

  • XRPL is preparing to release version 2.5.0 in June with several major feature upgrades.
  • The new XLS-56 feature allows users to group up to eight transactions in a single batch.
  • Batch transactions support atomic swaps and enable smart transaction dependency logic.
  • XRPL is also testing features like Account Permission Delegation and Dynamic NFTs.
  • Smart Escrows is currently being evaluated on the WASM Devnet for future release.

The XRP Ledger (XRPL) has confirmed integrating a major XLS-56 feature in preparation for the upcoming 2.5.0 upgrade. This release, scheduled for June, introduces batch transactions and supports future scalability. As XRPL aims to enhance performance, it moves to compete directly with Ethereum and Solana.

XLS-56 Brings Batch Transactions and Atomic Swaps to XRPL

XRP Ledger now includes the XLS-56 amendment, which enables users to group up to eight transactions in a single batch. This batch feature supports atomic swaps and smart transaction dependencies across the XRPL ecosystem. Consequently, it streamlines transaction processes and optimizes blockchain functionality.

Integrating batch transactions will support XRPL-based monetization and peer-to-peer NFT trading on a broader scale. With more efficient bundling, developers can execute advanced logic while keeping operational costs low. The upgrade demonstrates XRPL’s strategy to reduce complexity and promote seamless operations.

RippleX Senior Software Engineer Mayukha Vadari confirmed this integration through an announcement on X. She emphasized the technical breakthrough in batch processing in XRPL 2.5.0. After testing, the feature will be live once the amendment receives full validator approval.

Testing Begins for Next-Gen Blockchain Tools

Alongside batch processing, XRPL is testing additional features for phased deployment across the network. These include Account Permission Delegation, Multipurpose Tokens, Credentials, Permissioned Domains, and Dynamic NFTs. Each feature is being refined through XRP Ledger’s Devnet and Testnet environments.

The Devnet includes completed amendments that are still pending release, while the Testnet mirrors the mainnet for simulation. These networks allow developers to review feature behavior before final mainnet integration. This structured process ensures that XRPL can maintain reliability while deploying innovations.

Smart Escrows is another addition currently undergoing testing on the WASM-based Devnet. The tool aims to enhance asset handling with programmable conditions on XRPL. Once validated, this feature will expand XRPL’s smart contract capabilities.

XRPL Faces Competition from Ethereum and Solana in Upgrade Race

The XRP Ledger upgrade emerges when Ethereum prepares for its Pectra release and Solana advances with Alpenglow. Each platform is racing to improve network performance, though XRP Ledger focuses on reducing costs and enhancing functionality. Meanwhile, Ethereum and Solana prioritize scalability and speed.

XRPL’s approach includes integrating AI-powered tools like XRPTurbo to strengthen DeFi automation and utility. These enhancements position XRPL as a versatile ledger for financial and decentralized services. The upgrade aligns with long-term goals of supporting advanced applications and high-throughput demands.

XRPL continues to refine its core infrastructure with performance, modularity, and stability as key priorities. With XLS-56 now integrated, the ledger can support more complex transaction workflows. XRPL’s roadmap reflects a clear commitment to expanding use cases across its decentralized environment.

Source

🙏 Donations Accepted 🙏

If you find value in my content, consider showing your support via:

💳 PayPal: 
1) Simply scan the QR code below 📲
2) https://www.paypal.me/thedinarian

🔗 Crypto – Support via Coinbase Wallet to: [email protected]

Or Buy me a coffee: https://buymeacoffee.com/thedinarian

Your generosity keeps this mission alive, for all! Namasté 🙏 The Dinarian

Read full Article
See More
Available on mobile and TV devices
google store google store app store app store
google store google store app tv store app tv store amazon store amazon store roku store roku store
Powered by Locals