The Protocol newsletter explores the tech behind crypto and highlights recent developments in the industry.

The Protocol newsletter takes readers on an insightful journey into the inner workings of the rapidly evolving world of cryptocurrency and highlights recent advancements in the industry. As the crypto landscape continues to expand, there have been intriguing developments worth noting. Ethereum, for instance, has witnessed the emergence of unofficial token standards like ERC-404 and DN-404, which strive to combine the characteristics of both fungible and non-fungible tokens. In the Bitcoin realm, developers are proposing the revival of the OP_CAT function, a piece of code that was once present in Bitcoin’s early stages but eventually removed. Furthermore, key announcements have been made, such as the upcoming airdrops of STRK and W tokens by Starknet Foundation and Wormhole respectively. Marking a significant milestone for Ethereum, the highly anticipated Dencun upgrade is scheduled for March 13, while deposits in the EigenLayer restaking protocol have reached an impressive $6.5 billion. Additionally, Polygon Labs introduces a new component called “Type 1 prover,” facilitating the transformation of any network compatible with Ethereum’s EVM standard into a layer-2 network. Tezos blockchain has activated its fifteenth upgrade, introducing private smart rollups as a new security measure. Sommelier, a DeFi platform, is broadening its reach by expanding to Ethereum layer 2s via Axelar’s cross-chain messaging. Seizing opportunities for growth, Bitcoin wallet firm Fordefi has successfully raised $10 million in venture capital investment, aiming to further enhance its institutional-focused wallet offering.

Unofficial Token Standards in Ethereum

ERC-404 and DN-404 combining fungible and non-fungible token features

In recent years, Ethereum has witnessed the rise of unofficial token standards that seek to combine the features of both fungible and non-fungible tokens. One such token standard is ERC-404, which has gained popularity among developers and blockchain enthusiasts. ERC-404 introduces a unique approach to tokenization by allowing tokens to possess both fungible and non-fungible attributes simultaneously. This opens up new possibilities for creating more complex and versatile token ecosystems.

DN-404 is another unofficial token standard that has emerged in the Ethereum community. DN-404, similar to ERC-404, aims to combine the strengths of fungible and non-fungible tokens. However, DN-404 takes a slightly different approach, focusing on integrating these two token types at the protocol level. By doing so, DN-404 provides developers with a more streamlined and efficient way of building applications that require both fungible and non-fungible token functionalities.

These unofficial token standards offer exciting opportunities for developers and entrepreneurs looking to push the boundaries of tokenization on the Ethereum blockchain. By combining the strengths of fungible and non-fungible tokens, projects built on ERC-404 and DN-404 can create unique digital assets with properties that were previously impossible to achieve with traditional token standards. The growing adoption of these unofficial token standards demonstrates the Ethereum community’s commitment to innovation and the continuous evolution of the blockchain ecosystem.

Revival of OP_CAT in Bitcoin

Developers proposing the revival of OP_CAT function in Bitcoin

Bitcoin developers have recently proposed the revival of the OP_CAT function, a piece of code that was present in Bitcoin’s early days but later removed. OP_CAT allows for the concatenation of string data within Bitcoin transactions, enabling more complex and expressive smart contract capabilities. While OP_CAT was removed due to security concerns and potential abuse, developers argue that the need for this functionality has grown as the Bitcoin ecosystem has expanded.

The revival of OP_CAT in Bitcoin would provide developers with a powerful tool to build more intricate and sophisticated applications on the blockchain. By enabling the concatenation of string data, OP_CAT opens up possibilities for creating advanced smart contracts and decentralized applications. This proposed revival is a testament to the Bitcoin community’s commitment to improving the functionality and flexibility of the network, while also prioritizing security and user experience.

It is important to note that the revival of OP_CAT is still in the proposal stage and will require thorough testing and review by the Bitcoin community before it can be implemented. However, its potential impact on the Bitcoin ecosystem is significant, as it would provide developers with enhanced capabilities to unlock new use cases and push the boundaries of what is possible on the Bitcoin blockchain.

Airdrops of STRK and W Tokens

Upcoming airdrops of STRK token by Starknet Foundation

Upcoming airdrops of W token by Wormhole

Airdrops have become a popular method for distributing tokens to a wide audience and generating interest in new projects. Recently, the Starknet Foundation and Wormhole have announced upcoming airdrops of their respective tokens, STRK and W.

The Starknet Foundation’s airdrop of the STRK token aims to incentivize community participation and engagement with the project. STRK is the native token of the Starknet network, a layer-2 scaling solution for Ethereum. The airdrop will distribute STRK tokens to eligible participants, allowing them to become early adopters and stakeholders in the Starknet ecosystem. This move not only stimulates interest in the project but also helps to foster a strong and active community around Starknet.

Wormhole, on the other hand, is a cross-chain bridge that enables the transfer of assets between different blockchain networks. Wormhole’s upcoming airdrop of the W token is designed to reward users of the platform and encourage wider adoption. By distributing W tokens to participants, Wormhole aims to increase awareness and utilization of its cross-chain bridge technology.

Both the STRK and W token airdrops demonstrate the growing trend of utilizing airdrops as a means of distributing tokens and engaging with the community. These airdrops allow participants to become early beneficiaries of these projects and contribute to their growth and success.

Ethereum’s Dencun Upgrade

Long-awaited Dencun upgrade set for March 13

Deposits in EigenLayer restaking protocol reach $6.5 billion

The Ethereum community is eagerly awaiting the Dencun upgrade, which is scheduled to take place on March 13. This long-awaited upgrade brings several improvements and enhancements to the Ethereum network, further solidifying its position as a leading blockchain platform.

One significant aspect of the Dencun upgrade is the introduction of the EigenLayer restaking protocol. This protocol allows users to stake their Ethereum tokens and earn rewards, while also maintaining the security and integrity of the network. The Dencun upgrade has seen an impressive response from the Ethereum community, with deposits in the EigenLayer restaking protocol reaching a staggering $6.5 billion.

The introduction of the EigenLayer restaking protocol is expected to have a profound impact on the Ethereum ecosystem. By incentivizing users to stake their tokens and participate in securing the network, this upgrade promotes a more decentralized and robust blockchain infrastructure. Additionally, the substantial amount of deposits reflects the community’s confidence in the Ethereum network and its potential for growth and innovation.

Overall, the Dencun upgrade and the implementation of the EigenLayer restaking protocol are crucial milestones for the Ethereum community. These developments highlight Ethereum’s commitment to scalability, security, and decentralization, paving the way for the network to support a wide range of decentralized applications and facilitate the growth of the entire blockchain industry.

Polygon Labs’ Type 1 Prover

Release of new component allowing Ethereum-compatible networks to become layer-2 networks

Polygon Labs, a leading provider of scalable blockchain solutions, has recently released a new component called the Type 1 Prover. This innovative component enables Ethereum-compatible networks to seamlessly function as layer-2 networks, expanding the scalability and interoperability of the Ethereum ecosystem.

With the release of the Type 1 Prover, Ethereum-compatible networks can tap into the benefits of layer-2 solutions, such as faster transaction speeds and lower fees. This is achieved by utilizing the Layer 1 security of the Ethereum network while leveraging the Layer 2 capabilities of the Ethereum-compatible network. The Type 1 Prover acts as a bridge between these two layers, allowing for efficient and secure transactions across multiple networks.

The adoption of the Type 1 Prover has the potential to significantly enhance the scalability and usability of Ethereum and its associated networks. By enabling Ethereum-compatible networks to function as layer-2 networks, Polygon Labs is empowering developers and users to take advantage of the benefits of both layer-1 and layer-2 solutions. This advancement further solidifies Ethereum’s position as a leading blockchain platform and expands its capabilities to support a broader range of applications and use cases.

Private Smart Rollups in Tezos

Tezos blockchain activates fifteenth upgrade introducing private smart rollups

The Tezos blockchain has recently activated its fifteenth upgrade, introducing an exciting new feature called private smart rollups. This upgrade further enhances the security and privacy of transactions on the Tezos network, making it an even more attractive option for developers and users seeking privacy-enhanced blockchain solutions.

Smart rollups are a layer-2 scaling solution that allows for the processing of a large number of transactions off-chain, while still benefiting from the security and decentralization of the underlying blockchain. By introducing private smart rollups, Tezos provides users with the additional benefit of enhanced privacy for their transactions and smart contracts.

The activation of private smart rollups represents a significant milestone for Tezos and the broader blockchain ecosystem. Privacy has become an increasingly important consideration for blockchain users, and the ability to conduct transactions in a private and secure manner is of utmost importance. With private smart rollups, Tezos offers users the assurance that their sensitive information remains confidential, further solidifying its position as a privacy-focused blockchain platform.

Expansion of Sommelier on Ethereum Layer 2s

DeFi platform Sommelier expands via Axelar’s cross-chain messaging

The DeFi platform Sommelier is set to expand its operations on Ethereum Layer 2s through the integration of Axelar’s cross-chain messaging technology. This integration allows Sommelier to seamlessly connect with other Layer 2 networks and achieve greater interoperability within the broader blockchain ecosystem.

By expanding to Ethereum Layer 2s, Sommelier aims to address the scalability and cost issues associated with operating on the Layer 1 Ethereum network. Layer 2 solutions provide faster transaction speeds and lower fees, making them ideal for decentralized applications like Sommelier that require high throughput and efficiency.

Axelar’s cross-chain messaging technology acts as a bridge between different blockchain networks, enabling seamless communication and data transfer. By incorporating this technology into its platform, Sommelier can establish connections with other Layer 2 networks, unlocking new synergies and expanding its reach within the growing Ethereum ecosystem.

The expansion of Sommelier on Ethereum Layer 2s demonstrates the platform’s commitment to embracing innovative solutions and improving the user experience. By leveraging the scalability and interoperability of Layer 2 networks, Sommelier aims to provide its users with a seamless and cost-effective DeFi experience, further driving the adoption and evolution of decentralized finance.

Venture Capital Investment in Fordefi

Fordefi raises $10 million investment for institutional-focused Bitcoin wallet offering

Bitcoin wallet firm Fordefi has successfully raised a $10 million investment from venture capital funds. This investment aims to support the development and expansion of Fordefi’s institutional-focused Bitcoin wallet offering, catering to the growing demand for secure and user-friendly cryptocurrency storage solutions.

Fordefi’s institutional-focused Bitcoin wallet is designed to meet the unique needs of institutional investors, including asset managers, hedge funds, and other financial institutions. The wallet offers enhanced security measures, multi-signature functionality, and comprehensive reporting capabilities, ensuring compliance with regulatory standards.

The venture capital investment signifies the recognition and confidence of investors in Fordefi’s business model and its potential to address the needs of institutional investors in the cryptocurrency space. With increased institutional participation in the Bitcoin market, there is a growing demand for reliable and robust storage solutions that meet the strict security and compliance requirements of these investors.

The funds raised by Fordefi will be used to further enhance the platform’s features and expand its reach within the institutional market. This investment solidifies Fordefi’s position as a key player in the cryptocurrency wallet space, and positions the company to capitalize on the continued growth and maturation of the institutional Bitcoin market.

In conclusion, these various developments and upgrades in the blockchain industry highlight the continuous innovation and evolution of the crypto space. From the incorporation of unofficial token standards in Ethereum to the revival of OP_CAT in Bitcoin, these advancements contribute to the growth and maturation of the blockchain ecosystem. The upcoming airdrops of STRK and W tokens, along with the Dencun upgrade in Ethereum, showcase the community’s enthusiasm and support for these projects. Additionally, the introduction of Polygon Labs’ Type 1 Prover, private smart rollups in Tezos, the expansion of Sommelier on Ethereum Layer 2s, and the venture capital investment in Fordefi further contribute to the scalability, privacy, and usability of blockchain networks. As the industry continues to evolve, these developments pave the way for new possibilities and opportunities in the world of decentralized finance and blockchain technology.