Researchers at the Lawrence Livermore National Laboratory have devised a physics-based cryptocurrency that links electrical power and blockchain technologies in a new way.
This new concept of blockchain, called ‘E-Stablecoin’, could allow the transmission of electricity between users that are spread all over the world, without the need for interconnection cables or a network-based transmission system.
The work solves critical digital asset stability issues and is the first cryptocurrency token design that is collateralized by a physical asset and completely decentralized because it is protected by the laws of statistical mechanics.
The research appears in the journal Cryptoeconomic Systems.
Digital assets and cryptocurrencies, such as Bitcoin, have seen explosive growth since their inception in 2009, prompting President Biden to sign an executive order to ensure the responsible development of digital assets. The executive order notes that digital assets have profound implications in areas including “privacy and data security; financial stability and systemic risk; crime; National security; the ability to exercise human rights; financial inclusion and equity; and energy demand and climate change”.
Consequently, the executive order calls for coordinated interagency efforts on the responsible development of digital assets, including technological advances and payment innovations.
The researchers say the new LLNL cryptocurrency concept is a step toward implementing responsible digital assets that go beyond the digital world and instead are linked to the physical world in more tangible ways. E-Stablecoin takes advantage of modern advances in thermodynamics to transmit energy as a form of information.
Maxwell Murialdo and Jon Belof have detailed how a connection between energy and information enables the creation of a cryptocurrency token that is directly backed by and convertible into a kilowatt-hour of electricity. While the input of one kilowatt-hour of electricity is required to mint an E-Stablecoin token, that digital token can later be destroyed to recover one kilowatt-hour of usable electricity.
Therefore, the price of an E-Stablecoin token is linked to the price of a kilowatt-hour of electricity in a robust, stable and trustless way: a system that does not depend on an institution or a third party for a network or payment. system to function.
As Murialdo explained: “Any anonymous party can mint an E-Stablecoin token with the input of approximately one kilowatt-hour of electricity. They can then transact with the digital token like any other cryptocurrency, or even convert it back into usable electricity, all without the need for power companies, power transmission lines, permits, or authorities. It is a trustless system from top to bottom.”
A key issue plaguing many cryptocurrencies is the tendency for wild fluctuations in the cryptocurrency’s exchange price to arise. These extreme price fluctuations increase risks and discourage consumer transactions, long-term smart contracts, and other blockchain-based applications.
One solution is to create ‘stablecoins’, which are cryptocurrency tokens specifically designed to hold a stable value relative to external assets. Stablecoins can peg the value of their token to the value of a foreign asset like a US dollar or a gram of gold by making the token directly tradable for the asset.
However, to date, pegging the value of a cryptocurrency token to the value of a physical asset has required trust in a centralized authority, which can hold and disburse the physical asset.
Requiring trust in a centralized authority introduces a potential point of failure that is antithetical to the decentralized ethos of cryptocurrencies.
E-Stablecoin says it is the first stablecoin concept to eliminate this point of failure, a feat made possible by using the interplay of thermodynamics and information theory. In the future, E-Stablecoin may help distribute electricity to remote locations that are not connected by an electrical grid system, or combat climate change by allowing intermittent renewable energy to be transmitted to places where it is needed most for efficiency. .
“Through thermodynamic reversibility, to the extent that a modern understanding of statistical mechanics allows, we envision a future blockchain that is not only rooted in real-life assets like energy use, but is also a more responsible steward of our natural resources. in support of the economy,” said co-author Belof.
The E-Stablecoin concept was developed through the LLNL Laboratory Directed Research and Development program.
Crypto Market Drops Below $1tr Amid Concerns Over Celsius
The cryptocurrency market has plunged below $1 trillion for the first time since January 2021.
Prolonged drop comes as Crypto lending service Celsius pauses withdrawals and transfers from its platformciting “extreme market conditions,” it continues.
The UK-based company, which allows people to earn interest when depositing their cryptocurrencies and also lends cryptocurrency, he said plans to ‘meet retirement obligations’ despite speculation about its creditworthiness.
Bank of England Governor Andrew Bailey, testifying in the UK Parliament yesterday, cited the situation in opining: “Crypto assets have no intrinsic value. This morning we have seen another explosion at a cryptocurrency exchange.”
The general counsel for Ripple, the company behind the XRP cryptocurrency, says the United States Securities and Exchange Commission is attempting to “intimidate, bully and bankrupt” crypto innovation. Stu Alderoty said that the ongoing lawsuit between Ripple and the regulator is part of the “SEC’s attack on all cryptocurrencies in the US,” adding: “Like a hammer that wants everything to be a nail, the SEC keeps everything cloudy to be able to discuss every crypto is a security.”
Virgin Group founder Richard Branson is the latest high-profile figure to take aim at scammers using his name in crypto scams. He says he has spoken with Meta COO Sheryl Sandberg about false promotions on Facebook and has directed his attorneys to contact other social media platforms that have hosted malicious ads.
Mayfair’s first physical NFT Gallery has opened on Dover Street with a “Surface Tension” exhibition featuring works by female artists. The launch event attracted attendees such as Maxim of The Prodigy, Coinbase Europe Director and Google Arts Director, as well as luminaries from the art scene. The NFT Gallery was founded by Lynn Rosenberger and Lilien Hornung-Mary as a new physical space for art collectors and creators to buy, produce, and learn about NFT and digital art.
Specialist food and drink marketing consultancy SALT has launched an office and event space within a virtual British pub in the ‘global food metaverse’ OneRare. SALT Arms will host one-on-one client consultations in the main pub or in individual booths for more private conversations, with options for gamified components using NFTs that blend virtual and real-world elements. The second floor will be SALT’s event space, which can be customized for clients planning to host virtual events without having to commit to a full campaign or permanent presence in the metaverse.
The overall market capitalization of the 19,800+ coins is $964.87 billion at the time of writing (7am UK), a 6% decrease over the last 24 hours.
Market leader Bitcoin, the original cryptocurrency created by the mysterious Satoshi Nakamoto, fell 10% in the last 24 hours to $22,775. BTC is down 23% in a week.
Ethereum, the second most valuable crypto currency, created as a decentralized network for smart contracts on the blockchain, fell 8% to $1,225. ETH is down 30% over the course of a week.
Binance Coin is a cryptocurrency created by the popular cryptocurrency exchange Binance to help its goal of becoming the infrastructure service provider for the entire blockchain ecosystem. Its BNB token lost 4% to $228, leaving it down 19% in seven days.
Cardano is an open source network that facilitates dApps that is considered to be an updated version of Ethereum. Its ADA token, designed to allow owners to participate in the operation of the network, gained 7% at 49 cents, but was down 16% over the course of a week.
Ripple’s XRP token, a payment settlement asset exchange and remittance system, acts as a bridge for transfers between other currencies. XRP shed 1% towards 32c and its price is 18% lower than it was seven days ago.
Solana is a blockchain created to make decentralized finance accessible on a larger scale and capable of processing 50,000 transactions per second. Its SOL token grew 9% to $30.52, but is down 22% compared to a week ago.
Meme coin DOGE was created as a satire on the hype surrounding cryptocurrencies, but is now a major player in the space. DOGE fell more than 1% to below 5.8c, leaving it down 27% in a week.
Polkadot was founded by the Swiss-based Web3 Foundation as an open source project to develop a decentralized web. Its DOT token, which aims to connect blockchains securely, added 7% to $7.37, but is 19% lower than its price a week ago.
Avalanche is a lightning-fast verifiable platform for institutions, businesses, and governments. Its AVAX token gained 5% to $16.85 but was down 29% in a week.
To see how the valuations of major coins have changed in recent times, and for summaries of the latest cryptocurrency news developments, click here.
For valuations of the top 100 coins by US dollar market capitalization, plus 24-hour price change, see below.