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Ethereum co-founder Joe Lubin says Consensys is willing to spend millions of dollars to challenge the Securities and Exchange Commission's (SEC) enforcement campaign against the broader Ethereum ecosystem in the United States.

Speaking exclusively on the Decentralize with Cointelegraph podcast, Lubin unpacked the finerdetails of Consensys decision to take preemptive legal action against the SEC. Listen to the full podcast below.

The Ethereum co-founder believes the financial and operational costs incurred by the cryptocurrency ecosystem due to the SECs regulate by enforcement policies are hard to quantify.

Were all in. But we should think about the costs weve already incurred and the costs that our entire ecosystem keeps incurring, Lubin told Cointelegraph.

The Consensys CEO said the SEC had been carpet bombing the entire ecosystem with enforcement actions, forcing companies to search for and produce an enormous amount of documents to appease the U.S. securities regulator.

Related:Ethereum ETF approvals becoming giant political issue Joseph Lubin

Lubin said that small startups in the cryptocurrency space threatened with legal action by the SEC are being hamstrung by an inability to raise money:

Lubin revealed that Consensys was preparing to pay tens of millions of dollars in legal fees to take on the SEC for determining internally and secretly that Ether (ETH) is a security.

Everybody keeps saying its a commodity. Yet he cant bring himself to say that its a security. Hes punishing everybody in our ecosystem as though theyve already determined internally, secretly, that it is a security, Lubin added.

The Ethereum co-founder also discussed Ethereums ongoing roadmap, the importance of modularization, and the layering approach for scalability. He explained how the technologys scalability has matured, enabling diverse applications and broader adoption.

Mature engineering systems modularize for effectiveness and efficiency. Our ecosystem is modularizing and layering, and thats great. The pains that some experience are around this divergent phase of achieving scalability, Lubin explained.

The Consensys CEO said that Ethereum has achieved horizontal and vertical scalability, which will eventually allow for more layers of complexity.

Diversity of solutions is an important step in allowing Ethereums infrastructure to converge, allowing software development kits to enable chain abstraction and single coherent view of the ecosystem.

Lubin said the end goal is an intents-based architecture in which the many parts of Ethereums network seamlessly carry out the necessary communications and transactions to meet a users specific wants.

Youre talking to your wallet and saying, I want some Solana tokens, or I want to play a game. It just goes ahead, does all the necessary bridging and swapping, and puts the requisite number of tokens into your MetaMask, Lubin explained.

This eventuality will require artificial intelligence (AI) tooling and solver networks and highly scalable, highly diverse machinery underneath. Lubin drew comparisons to the internet of today, which runs on a wide variety of different kinds of databases for different purposes.

The Ethereum co-founder also commented on staking, the return on investment for validators, and the inherent risks. Lubin unpacked how stakeholders perceive staking and its importance in the Ethereum ecosystem.

EigenLayer was another point of discussion, with Lubin explaining how innovations like restaking and elastic security resources will transform startup operations in the blockchain space.

The Consensys CEO also discussed the Solana (SOL) ecosystem and how Bitcoin (BTC) shaped his journey into the world of cryptocurrencies and blockchain.

Lastly, he recapped Vitalik Buterins ongoing influence on the Ethereum ecosystem and his broader vision. Joe highlights Vitaliks role in transitioning Ethereum and his involvement in global initiatives for technological adoption.

Listen to the full episode of Decentralize with Cointelegraph on Cointelegraphs podcast page, Spotify, Apple Podcasts or your podcast platform of choice. And dont forget to check out Cointelegraphs full lineup of other shows!

Disclaimer: This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Magazine:Godzilla vs. Kong: SEC faces fierce battle against cryptos legal firepower

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Exclusive: Joe Lubin unpacks SEC battle, Ethereum roadmap and Vitalik Buterin - Cointelegraph

Ethereums much-debated rollup-centric road map was the right call, but comes with its own set of pitfalls, according to the blockchains co-founder, Vitalik Buterin.

Ethereum has ambitions of serving as a world computer the rails on which a new set of leaderless, user-owned businesses and organisations will run.

But the blockchain is slow and expensive.

In their quest to build a blockchain that can serve billions of users reliably and affordably , Ethereums team of developers decided the blockchain should expand through many complementary blockchains rather than through improvements to Ethereum itself.

Doubling down on these complementary blockchain s called layer 2s or rollups, in crypto-speak was the right call, Buterin argued in his influential blog last week.

This is powerful, and enables a lot of creativity and independent innovation, he wrote.

The rollup model has created a diverse community that is still united by a shared set of values, he said.

Layer 2s allow subcultures to emerge that are armed with substantial resources, and a feedback loop that forces them to learn and adapt in order to be effective in the real world, Buterin wrote.

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In general, every Ethereum layer 2 has a unique soul: some combination of Ethereums culture, together with its own particular twist.

But this happy status quo shouldnt be taken for granted, he said.

Coordination is difficult, with little incentive for competing layer 2 blockchains to collaborate, according to Buterin.

Layer 2 blockchains and their communities could start acting like separate universes, with little cross-pollination between them, he wrote.

Alternatively, some layer 2 blockchains might come to dominate, snuffing out Ethereums pluralistic ethos for a monoculture.

Whether due to shared human biases or shared economic incentives (or too strong of a unified Ethereum culture), everyone ends up looking in similar places for what applications to build and perhaps even what technical choices to make, he wrote.

Buterin suggested layer 2 blockchains coordinate by subsidising the development of shared infrastructure

There is a lot of value in trying to expand on these ideas, and keep working to make the best of Ethereums unique advantage as a pluralistic ecosystem.

Layer 2 blockchains have boomed in recent years.

According to crypto research site L2BEAT, almost 100 layer 2s are active or in development.

Existing layer 2 blockchains have processed almost twice as many transactions as Ethereum itself over the past year, according to data collected by Jack Gorman, a data scientist at venture capital firm Variant Fund.

Aleks Gilbert is a DeFi Correspondent at DL News. Got a tip? Email him at aleks@dlnews.com.

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Ethereum's rollup model comes with risks, Vitalik Buterin warns - DLNews

Ethereum co-founder Vitalik Buterin has demonstrated his unwavering commitment to privacy in the cryptocurrency sector by donating 30 ETH, valued at approximately $113,000, to the legal defense fund of Tornado Cash developers Alexey Pertsev and Roman Storm.

This donation highlights the significance of their cause and Buterins dedication to privacy rights.

Etherscan datarevealsthat Buterin donated to the Free Pertsev and Storm defense fund on the decentralized fundraising platformJuiceboxon May 30. As of this writing, the fund has accumulated 591 ETH, equivalent to $2.2 million, to support the developers legal battles.

Pertsev and Storm have faced significant legal challenges due to their involvement with Tornado Cash, a crypto privacy protocol. The Dutch court sentenced Pertsev to 64 months in prison for laundering $1.2 billion through Tornado Cash between July 2019 and August 2022. He has appealed the verdict at the s-Hertogenbosch Court of Appeal in the Netherlands. Meanwhile, Storm has been detained in the US since 2023, with his trial scheduled for September.

Vitalik Buterin has consistently advocated for privacy in the crypto space. He has published several papers and suggestions on enhancing privacy on Ethereum, reinforcing his support for tools like Tornado Cash. During a recent fireside chat, Buterin reiterated his perspective on privacy.

Im supportive of people working on privacy things. I hope that things go in a good direction within the ecosystem. And you know, I also hope that governments see the value of this, Buterin explained.

Read more:Tornado Cash: Everything You Need To Know

Ethereum co-founder Buterins donation to the Tornado Cash developers highlights his commitment to privacy rights. He remains hopeful about the development of advanced privacy tools, highlighting their importance in the digital era. Buterins unwavering support and advocacy bring out the critical role privacy will play in the future of digital transactions.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that ourTerms and Conditions,Privacy Policy, andDisclaimershave been updated.

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Vitalik Buterin Supports Tornado Cash Devs with 30 ETH Donation - BeInCrypto

Vitalik Buterin, the co-founder and primary architect of Ethereum, donated 30 Ether, or more than $112,000, on Thursday to support the legal defence for Alexey Pertsev and Roman Storm, the developers behind the crypto mixer Tornado Cash.

At the same time, Buterin is helping develop a new crypto mixer that will provide users with an anonymising tool for crypto transactions.

But the new Ethereum-based platform will differ from Tornado Cash in one major way it is being designed to be compliant with anti-money laundering laws.

Buterins twin moves mark a volatile period for crypto privacy. In May, Pertsev was sentenced to more than five years in prison after being convicted by a Dutch court in a $2.2 billion money laundering case.

In September, Roman Storm, another Tornado Cash dev, will be tried on similar charges in US court. Privacy advocates have rallied to Storms defence. In the meantime, Pertsev has filed an appeal to the judges verdict.

Their cases have transfixed the blockchain and open-source communities, which fear that developers will be held liable if their code is misused by third parties.

The Pertsev conviction also threw the future of smart contracts used in anonymising platforms into jeopardy.

The Dutch court ruled that Pertsev was responsible for the parties using Tornado Cashs technology even though smart contracts are designed to run autonomously.

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Coinbase, the Blockchain Association, and additional trade associations have submitted so-called friend-of-the-court briefs supporting Storm.

Matter Labs, the developer group behind layer 2 network ZKSync, donated $100,000 to the developers legal defence. The Uniswap DAO is currently mulling giving as much as $1.5 million in UNI tokens.

According to the decentralised funding platform Juicebox, the onchain legal defence fund has already attracted $2.2 million in donations.

For his part, Buterin and other researchers, including Ameen Soleimani, outlined a unique mechanism for users to maintain their privacy without offering criminals squeaky-clean crypto, according to a 2023 paper.

The technology is called Privacy Pools and lets users opt out of mixing funds with potentially ill-gotten funds.

Soleimani is already implementing the idea in his project 0xbow.

It is designed to show that DeFis cypherpunk ethos is alive and well even as the sector attracts mounting interest from Wall Street powerhouses such as BlackRock and Fidelity.

Inbar Preiss and Liam Kelly are Europe-based correspondents for DL News. Got a tip? Email them at inbar@dlnews.com and liam@dlnews.com.

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Vitalik Buterin's $112000 Tornado Cash donation is just one part of his fight for crypto privacy - DLNews

Vitalik Buterin, the visionary co-founder of Ethereum (ETH), recently highlighted the deep connection between culture and the technological advancements within the Ethereum ecosystem.

He emphasized the significance of underlying cultural dynamics in shaping Ethereums growth. Known for its pioneering role in blockchain and smart contracts, Ethereum has evolved to foster a diverse community. Here, mainly three subcultures play a pivotal role in the development.

Buterin pointed out that the split between Ethereum and Ethereum Classic illustrates how cultural differences can define technological paths. Initially identical in technology, their cultural divergence led them down distinct paths over the years.

Buterin states that Ethereums cultural fabric impacts everything from protocol decisions to user attraction.

Read more: Who Is Vitalik Buterin? An In-Depth Look at Ethereums Co-Founder

Culture has a similar effect to incentives indeed,culture is part of incentives. It affects who is attracted to an ecosystem and who is repelled. It affects what kinds of actions people are motivated to do, and what kinds of actions peoplecando. It affects what is consideredlegitimate both in protocol design, and at the ecosystem and application layer, Buterin said.

This influence extends to the types of changes made to the protocol, its ability to remain open and decentralized, and its appeal to high-quality developers and users.

Delving into Ethereums subcultures, Buterin identifies three main groups: Cypherpunks, Regens, and Degens. Each group interacts with Ethereums technology in ways that reflect their distinct values and goals.

Cypherpunks focuses on privacy and open-source development, Regens on governance and public goods, and Degens on financial speculation.

These subcultures enrich Ethereums community and contribute to its technological diversity. This diversity is a strength, enabling continuous adaptation and innovation. Buterin highlights that pluralism allows for multiple approaches to scaling, virtual machine design, and other technological features.

Furthermore, the concept of layer 2 scaling solutions exemplifies the importance of cultural influence. Layer 2 platforms allow subcultures to implement and experiment with their ideas, effectively creating sub-ecosystems within Ethereum. This setup fosters a dynamic environment where various subcultures can coexist, collaborate, and compete, thus driving forward the collective development of Ethereum.

Read more: A Beginners Guide to Layer-2 Scaling Solutions

However, Buterin also warns of potential pitfalls in cultural dynamics, such as the risk of echo chambers or a monoculture that could stifle innovation. To avoid these traps, he suggests maintaining a balance and promoting a culture of pluralism and cooperation.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that ourTerms and Conditions,Privacy Policy, andDisclaimershave been updated.

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Vitalik Buterin Reveals Ethereum's Cultural Influences - BeInCrypto