Tech, The Protocol, EigenLayer, Layer 2s, North Korea, quantum computing Also: Bitcoin L2 SDKs; North Korea’s THORChain Use; and Quantum-Resistant BTC
Welcome to The Protocol, CoinDesk’s weekly wrap-up of a really highly effective tales in cryptocurrency tech enchancment. We’re Margaux Nijkerk and Sam Kessler, reporters on CoinDesk’s Tech employees.
In this topic:
EigenLayer Finally Ready To Launch Critical Missing Feature
RootstockLabs Prepares To Release SDKs for Bitcoin Layer 2s Using BitVMX
Inside North Korea’s Favorite Crypto Laundering Tool: THORChain
Bitcoin Developer Proposes Hard Fork To Protect BTC From Quantum Computing Threats
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Network News
EIGENLAYER’S KEY FEATURE IS FINALLY COMING: EigenLayer, the restaking protocol, shared ultimate week that it will lastly introduce its long-awaited slashing attribute on April 17, marking the protocol’s first “feature-complete” mannequin. Slashing will allow Actively Validated Services (AVSs) — apps constructed atop EigenLayer’s restaking system — to penalize operators who fail to fulfill pre-established conditions, and reward people who do. EigenLayer initially pioneered the thought of restaking, a method for Ethereum prospects to protected further protocols previous the underside layer by recommitting their staked Ether. Slashing was presupposed to be a core part of this methodology, providing apps a choice to punish harmful actors by seizing a portion of their capital. Since slashing was not part of EigenLayer when it initially launched in 2024, it left room for rivals to appreciate market share. Symbiotic, which allows for the restaking of any asset, has been utilized by EigenLayer early adopters along with Hyperlane, an interoperability framework, and Ethena, a most well-liked synthetic dollar protocol. — Sam Kessler Read more.
BUILDING LAYER-2S ON BITCOIN COMING SOON: One of the oldest Bitcoin ecosystem duties is shifting to the next stage of enabling builders to assemble layer-2 networks using its computational layer. Rootstock is one amongst many duties for the time being advancing the aim of bringing bigger utility and interoperability to Bitcoin, which it is doing using “BitVMX”, a modified mannequin of the BitVM programming language. RootstockLabs enterprise is weeks away from releasing software program program enchancment kits (SDKs), allowing builders to start producing their very personal Bitcoin layer-2s using BitVMX, founder Sergio Lerner suggested CoinDesk. SDKs are items of devices enabling third-parties to assemble functions using a particular platform or framework. “We are very close to having all the pieces ready for people to start building their own solutions on top of BitVMX,” Lerner said in an interview. — Jamie Crawley Read more.
NORTH KOREA’S PREFERRED CRYPTO LAUNDERING TOOL: In February, North Korea stole $1.4 billion inside the biggest-ever crypto heist. THORChain, a group used to swap crypto, has become central to North Korea’s laundering operations — used to bridge 85% of funds from the hack. Unlike one other blockchain firms, THORChain’s operators have refused to dam transactions linked to the Bybit heist, no matter requests from the FBI and totally different authorities companies. THORChain wallets like Asgardex and Vultisig — devices that the majority people use to transact on the group — haven’t budged, each. According to estimates from blockchain security researchers who spoke to CoinDesk, THORChain’s fundamental pockets builders and validators — many publicly acknowledged and based in jurisdictions with strict anti-money-laundering guidelines, along with the U.S. — have earned over $12 million in prices associated to the heist. The U.S. Office of Foreign Assets Control (OFAC) has beforehand sanctioned blockchain firms utilized in reference to money laundering, such as a result of the mixer app Tornado Cash (which has since been delisted after a court ruling) and Bitzlato, an change. Prosecutors have moreover charged operators behind comparable platforms. For licensed specialists and the crypto group, whether or not or not THORChain — a layer-1 blockchain — must be dealt with in one other means than these totally different firms revives a elementary debate confronted by nearly all crypto platforms: Is the group actually decentralized? — Sam Kessler Read more.
CAN BITCOIN RESIST QUANTUM COMPUTING?: Bitcoin may be headed for its most sweeping cryptographic overhaul but when a model new proposal constructive elements traction. A draft Bitcoin Improvement Proposal (BIP) titled Quantum-Resistant Address Migration Protocol (QRAMP) has been launched by developer Agustin Cruz. It outlines a plan to implement a network-wide migration of BTC from legacy wallets to ones secured by post-quantum cryptography. Quantum computing contains shifting away from a course of reliant on binary code, ones and zeros, and exponentially rising computing vitality by utilizing Quantum bits (qubits) that exist in numerous states concurrently. Such a leap in vitality is anticipated to threaten stylish computing encryption constructed by conventional machines. The proposal signifies that after a predetermined block high, nodes working the updated software program program would reject any transaction attempting to spend money from an cope with using ECDSA cryptography, which can theoretically make it vulnerable to quantum assaults. — Francisco Rodrigues Read more.
In Other News
The first Ripple (XRP) ETF went live on Tuesday. Also on Tuesday, Ripple agreed to acquire multi-asset prime brokerage company Hidden Road for $1.25 billion, marking one among many largest M&A provides inside the digital asset enterprise to this point. — Will Canny and Shaurya Malwa
Galaxy Digital plans to redomicile in Delaware and file shares on Nasdaq after May 9 shareholder vote. The data comes per week after Galaxy, a major crypto enterprise company, agreed to pay $200 million in a settlement with the New York authorized skilled primary’s office related to the fund’s involvement inside the 2022 Terra-Luna collapse. — Tom Carreras Read more
Regulatory and Policy
China and Europe every permitted retaliatory tariffs in opposition to the United States — the latest enchancment in a commerce warfare ignited by U.S. President Donald Trump that has ripped by world markets, along with digital asset markets. — CoinDesk
The worth of bitcoin dropped beneath $77K on Wednesday, representing a relatively modest 8% decline given that announcement of Donald Trump’s ‘Liberation Day’ tariffs. Recession fears have teed up a major check out for crypto markets, which have been born out of the 2008 financial catastrophe and have not existed by a major U.S. recession. So far, the decentralized finance (DeFi) sector has confirmed indicators of resilience. — Oliver Knight Read more
Argentina’s congress has launched an investigation into LIBRA, the alleged pump-and-dump memecoin enterprise promoted by president Javier Milei. The token worn out 90% for consumers and led to requires Mile’s impeachment. —Francisco Rodrigues Read more
Calendar
April 8-10: Paris Blockchain Week
April 30-May 1: Token 2049, Dubai
May 14-16: Consensus, Toronto
May 20-22: Avalanche Summit, London
May 27-29: Bitcoin 2025, Las Vegas
June 30-July 3: EthCC, Cannes
Oct. 1-2: Token2049, Singapore
CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data Read More