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Many people believe that Bitcoin users typically send their transactions directly to miners or mining pool operators. However, this is actually very uncommon.

Instead, users generally broadcast transactions essentially at random in other words, to whichever nodes happen to be connected to them and online at the time.

Usually, a Bitcoin user has no guarantee that a miner will ever see their transaction. They simply hope that random rebroadcasts among volunteer nodes will ping-pong their transaction across the network and eventually, somehow into a miners node.

This might seem odd and counterintuitive. Why not simply broadcast a transaction directly to a miner as a regular matter of course? Well, the explanation for this curious custom showcases the unique decentralization of the Bitcoin network.

Miners (or mining pool operators, specifically) select and order transactions within a block. Obviously, these mining operators must receive a transaction in the first place in order to include it within a block. Incentivized to include as much transaction data as will fit within a (max 4MB) block, miners store a queue of eligible transactions in their computers memory pool or mempool.

With Bitcoin, such computer nodes temporarily hold pending transactions. Nodes hold these transactions in their mempool until each transaction is mined in a block.

Note that there is no singular mempool of the Bitcoin network. Instead, each node maintains its own mempool of pending, valid, unmined transactions. There are many mempools.

Nodes that do not store the mempool typically experience a bandwidth spike when a block is found and transmitted across Bitcoins network of nodes (bandwidth is the amount of usage or data transmission over an internet connection at any given time).

Well-connected nodes with a large mempool already know those transactions, reducing their bandwidth load.

Nodes with a mempool may also use compact node relay to download block header and shortIDs in order to infer transactions. They can process signatures and scripts as users add them to the mempool, which further helps to verify transactions. They help speed up the propagation of blocks throughout the network by forwarding blocks to their peers more quickly than nodes without mempools in active storage.

Some nodes with a mempool may receive transactions before other similar nodes because Bitcoin clients can automatically choose which nodes to connect to and switch to another node if any particular one malfunctions. Nodes might not automatically forward transactions they receive to miners.

The Bitcoin network has always resisted switching to a system in which transactions are sent directly to miners. This is in direct contrast to Ethereum, which has a strict, step-by-step system for routing each transaction to miners (called validators) in an orderly fashion.

Ethereum users broadcast transactions to mempool operators who allow searchers to assemble transaction bundles for builders. They assemble a block for proposers to finalize for relayers who transmit it to validators (the proof-of-stake equivalent to miners) whose activities are surveilled by attestors.

The above system is acceptable for Ethereum which is less decentralized, uses a small handful of data centers, block explorers, and API endpoints, and invariably follows the formal directives of Vitalik Buterin. In contrast, Bitcoin aims to maximize its decentralization and censorship resistance.

Unlike Ethereum, if Bitcoin miners were to receive transactions through such an orderly conveyor belt, they could log the IP address of transaction originators and prohibit transactions from specified IP addresses or ranges.

Read more: Ethereum beacon chain experiences inactivity leak

Again, broadcasting a Bitcoin transaction directly to a miner reduces censorship resistance. Miners could log and block transactions from an entire region or just from a disagreeable person. This level of censorship would defeat the point of Bitcoin as a censorship-resistant financial system.

Instead of an orderly conveyor belt, the Bitcoin network allows anyone to ping-pong transactions across random peers, cloaking their identity and increasing the networks censorship resistance.

Moreover, nodes can strip transactions of most identifying data, such as IP addresses, while adding transaction data to their mempools. There are over 16,000 fully archival and validating Bitcoin nodes reachable at any moment.

As an added bonus, a distributed network of mempools makes it easy for ordinary users to accurately estimate the fees they should pay to have their transactions mined in a reasonable amount of time.

The mempool occasionally becomes backlogged with a large number of pending transactions, driving up transaction fees for fast inclusion in a block. Real-time mempool estimates allow users to either pay up for speed, or opt to wait if theyre not doing anything particularly time-sensitive.

For years, Bitcoin has supported the unique approach of sending unconfirmed transactions to random nodes and their mempools instead of transmitting transaction data directly to miners. This approach reduces bandwidth loads on nodes, reduces censorship risks, and makes estimating transaction fees easier for everyday users.

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Explained: Why Bitcoin users don't send transactions directly to miners - Protos

Payments giant Visa continues to explore digital asset payments and study innovative technologies to enable frictionless crypto onboarding and digital transaction experiences. After studying Account Abstraction to enable secure automatic recurring payments for self-custodial wallets, Visa explores how gas fees can be redesigned using Account Abstraction on Ethereum.

According to a recently published article Rethinking Digital Transactions with Account Abstraction, Visa is studying Ethereum account abstraction and proposal ERC-4337 for digital payments.

Visa has deployed two sets of Paymaster contracts on the Ethereum Goerli testnet, showing how to redesign gas fees on the blockchain to improve user convenience. ERC-4337 makes it possible for an owner to directly own smart contract accounts. In fact, Account Abstraction and Ethereum Virtual Machine compatibility offer more advantages for end users.

Guy Sheffield, head of crypto at Visa, took to Twitter to share the deployment of the first paymaster smart contract on the Ethereum testnet.

Blockchain expert Cygaar noted that the Visa team created a paymaster contract that first gets the ETH exchange rate to the ERC20 token (L110) and then transfers that amount of ERC20 tokens to itself (L112). In the next experiment, a paymaster contract was set up to completely cover gas fees for user transactions.

Also Read: Do Kwon and Terraform Labs Withdraw Millions A Year After Terra-LUNA Crisis

Ethereum co-founder Vitalik Buterin claimed gas fees Account Abstraction is something weve always wanted and that it has for a long time been a dream of the Ethereum developer community.

Vitalik Buterin recommends crypto investors using social recovery wallets andmulti-signature wallets to achieve self-custody of crypto funds.

With theERC-4337account abstraction and upcoming smart contracts wallets likeSoul Wallet,wallet security will improve. Vitalik Buterin proposes to use social recovery forhot walletsthat store a small portion of a person or organizations funds, and multisigs forcold walletsthat store a person or organizations savings.

Also Read: Binance Brings Back Zero-Fee Trading For Bitcoin, SHIB, PEPE, Other Crypto

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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Breaking: Visa Deepens Crypto Payments Presence With Ethereum ... - CoinGape

The Shiba Inu community continues to champion the narrative of a $0.001 price point for the asset, but this goal would be unfeasible without these catalysts.

Shiba Inu (SHIB) remains in the clutches of the bears, much like most cryptocurrencies. However, the asset has its eyes set on the ultimate goal of $0.001 which would mark a 11,173% increase from its current price of $0.0000887. While this seems like a long shot, the Shiba Inu community believes it is feasible.

Nonetheless, an assets price movement is not anchored on belief, but its tokenomics and the laws of economics. Consequently, Shiba Inus $0.001 price goal is contingent on two catalysts: burns and utility.

An assets supply is one of the major factors that determine its value. For Shiba Inu to hit a price of $0.001, its supply needs to reduce drastically. At the current circulating supply of 574.2 trillion, if Shiba Inu were to hit $0.001, its market cap would surge to $574.2 billion. For context, Bitcoin, the largest crypto asset, has a market cap of $518.4 billion.

Such a surge would make SHIB the biggest asset by market cap. The chances of this happening in the foreseeable future are rather low. A solution to the assets supply problem is token burns. SHIB would not have attained its all-time high if not for the 410 trillion token burn carried out by Vitalik Buterin in May 2021.

The Shiba Inu community remains committed to the projects burn campaign, but the current burn rate is unlikely to make a dent on its extensive supply. One of the largest cumulative intraday burns involved 2.25 billion SHIB in 24 hours on May 3. Even if the community incinerates 2.25 billion tokens every day, it would take 90 years to take out 74 trillion SHIB.

Besides burns, an assets utility can help with its price action. Utility refers to the usefulness of an asset beyond its ability to be bought, sold, and traded on an exchange. When an asset is leveraged for its real-world utility, like being used as payment for goods and services, it can help bolster adoption by attracting demand.

Shiba Inu already has utility beyond its speculative value. The asset has been adopted by numerous platforms as a payment method. Its integration in Binance Pay also helps introduce it to multiple e-commerce stores and merchants. However, the community seeks more.

It has been established that Shiba Inu would need to increase its burn rate and attract more utility to get a shot at hitting $0.001. This target is achievable with the introduction of several projects in the ecosystem, including Shibarium and SHIB: The Metaverse.

Shibarium is expected to introduce more utility to the Shiba Inu ecosystem by attracting projects all the while increasing its burn rate by incinerating SHIB with 70% of every base transaction fee. The Metaverse project is also expected to bring up more utility for Shiba Inu and further accelerate adoption.

Conclusively, a $0.001 price target might look difficult for SHIB to attain, but it is not impossible. The asset surged by over 142,000% from a value of $0.0000000605 in March 2021 to its ATH of $0.00008616 in October 2021. This surge was supported by the 410 trillion token burn. An 11,275% increase in the event of subsequent burns is feasible.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basics opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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These are the Catalysts that Could Launch Shiba Inu to $0.001 - The Crypto Basic

With the rise in digital assets, there is a dire need to secure your crypto funds and transactions with secure technology like Multisignature (Multisig) wallets to prevent vulnerability and the possibility of a hack. Multisig Wallets are a ray of hope for fortifying the DeFi ecosystem. But unfortunately, many digital wallet service providers have been unable to keep up with the demand for security, leaving users funds vulnerable to theft or fraud.

By implementing multisig technology, users can have greater peace of mind knowing that a robust and reliable system protects their digital assets. Recently, Ethereum co-founder Vitalik Buterin has emphasized the self-custody of funds through Multisig wallets and Social Recovery wallets to ensure the safety of funds.

So, without any further ado, lets go straight to the topic.

A multisig wallet, also known as a multi-signature wallet, is a cutting-edge digital wallet that offers unparalleled security for storing and transacting various digital assets, including cryptocurrencies, stablecoins, and non-fungible tokens (NFTs). Unlike traditional wallets that require only one private key to sign and execute transactions, a multi-sig wallet requires multiple private keys to authenticate and complete transactions.

The added layer of security ensures that even if one of the wallets or private-key is compromised, the wallets funds remain safe and secure. Simply put, a multi-sig wallet is a single locker with multiple keys to access what is locked inside.

The process to initiate a transaction with a multisig wallet follows the same steps regardless of the type of solution chosen. Simply input the transaction details into your wallet and sign it using your private key. Easy peasy, right? But heres where things get really interesting: your transaction wont be fully completed until all the required keys are submitted. Thats right, its a team effort!

So what are you waiting for? Start using a multi-sig wallet today following the steps given below to execute transactions through a multi-sig wallet.

Step 1: Set Up the Wallet

To start using a multi-signature wallet, you first need to create the wallet and add the co-signers who will have to approve any transactions.

Step 2: Create a Transaction

When you want to send cryptocurrency from your multi-signature wallet, you create a transaction in the same way as you would with a regular wallet. You will need to specify the amount you want to send, the recipients address, and any other details required by the wallet provider.

Step 3: Require Signatures

When creating the transaction, you also specify the number of signatures required to approve the transaction. For example, you may require two out of three co-signers to approve the transaction before it can be processed.

Step 4: Sign the Transaction

Once the transaction is created, it will be sent to all co-signers for approval. Each co-signer will need to sign the transaction using their private key. The wallet provider will then combine the signatures and check that the required number of signatures have been obtained.

Step 5: Broadcast the Transaction

Once the required number of signatures have been obtained, the transaction can be broadcast to the network and processed. The recipients address will receive the cryptocurrency, and the transaction will be recorded on the blockchain.

Step 6: Verify the Transaction

Each co-signer will receive a notification that the transaction has been processed. They can verify that the transaction was completed correctly and that the correct amount was sent to the correct address.

There are two terminologies used to define the types of multi-sig wallets.

N-of-n refers to the requirements of all private keys to authenticate and approve a transaction. For example, 2-of-2 multi-sig wallets require two private keys, the total number of keys to building a wallet.

N-of-m multi-sig wallets do not require all private keys but only need the threshold number of keys to execute transactions. For example, 2-of-3 muli-sig wallets only need two private keys out of three to process the transactions.

Also Read: Crypto Wallets: All You Need To Know About Their Types

There are three ways you can set up your multi-sig wallet and you can use any one of these.

Its important to note that the specifics of creating a multi-sig wallet may vary depending on the wallet software you choose. So make sure to read the documentation or instructions carefully to ensure you are setting up the wallet correctly.

One can reap given benefits from using multi-sig wallets,

Compared to hot wallets, multi-sig wallets are safer when securing transactions and digital assets.

Multi-sig wallets are highly accessible as one can operate from any device, like a laptop or phone. Moreover, they can sign transactions within seconds by entering their private keys manually or inserting keys where it held.

Multi-sig wallet enables 2-factor authentication as more than one private key is required to execute the transaction. That means no single entity can take control of a wallet or transfer addresses in case of a cyber attack.

With the rising number of scams and fraud, multi-sig wallets can restore trust in big institutions like crypto exchanges. By splitting the private keys into different entities, these institutions can assure customers or investors that their funds are safe.

Multi-sig wallets can use smart contract capability to proceed with escrow transactions, enabling different parties to execute their transaction safely and securely by setting some conditions.

For example, suppose someone orders three sets of shoes from a particular brand. The escrow transactions will automatically execute once they receive the order.

As every coin has two sides, so do multi-sig wallets.

Setting up and maintaining multi-sig wallets could be an ordeal for those using them for the first time. In addition, since multi-sig wallets require multiple signatures, there are more steps involved in authorizing a transaction; this can make the process more complex and increase the risk of user error.

Another major flaw in multi-sig wallets is the higher fees, as multiple signatures are required, and each signature adds to the transaction fee.

As different parties are involved in signing transactions, sometimes it could be delayed because of the unavailability of one of the participants. Also, Multisig wallets can take varying amounts of time to complete a transaction, ranging from a few hours to several days.

Factors such as the number of signatories required and geographical restrictions can influence the transaction duration and limit their use. Due to these limitations, there may be more convenient options for urgent or regular payments than multi-sig wallets.

Multisig wallets take longer and require more coordination to recover funds compared to single-key storage. N-of-N setups also lack a backup or recovery solution in case one signer is unavailable. Choosing a third-party custodian for a multi-sig wallet poses the risk of a security breach that could have serious consequences.

Finding the best multi-sig wallet is like finding a needle in a haystack. To simplify users choices, here are some best multi-sig wallets.

Armory is one of the oldest and most highly secured multi-sig wallets allowing users to control their private keys without relying on third-party servers. Armory is an open-source wallet with cold storage and multi-signature support. However, it could be complex for newbies as it requires a local copy of the blockchain to be on the same machine.

The leading crypto exchange, Coinbase, also provides multi-sig wallets as a hosted wallet model. Instead of users, Coinbase controls the private key on behalf of users. To fortify network security and as a centralized entity, Coinbase uses real-world identity.

Regarding Multisignature vaults, they do not provide insurance because they cannot have complete control over your coins in that way. Instead, they offer various combinations to their multi-signature addresses.

Coinbase uses a 3-key system, consisting of a Coinbase key, a user key, and a shared key, to give you control over your funds. In addition, Coinbase allows up to three authorizers to sign a Bitcoin transaction using a 3-of-3 authorization system.

The most commonly used desktop wallet is Electrum, which offers features like cold storage and multi-signature capabilities. Electrum is an open-source project released under the MIT license, which allows anyone to run a Bitcoin node using Electrum without a single point of failure.

Moreover, Electrum is the first wallet to use Simple Payment Verification (SPV), a method described by Satoshi in his whitepaper. As it only downloads the header for each block, it is faster than a web wallet yet still more secure.

Wrapping Up:

In conclusion, as cryptocurrency and DeFi continue to expand, the need for solid security measures becomes increasingly vital. Multi-sig wallets provide an extra layer of protection against cyber attacks and unauthorized access, thus making them a reliable option for safeguarding users funds.

By implementing multi-sig wallets, the cryptocurrency industry can enhance security standards and increase confidence among users, which can ultimately drive the growth and adoption of DeFi infrastructure. Therefore, multi-sig wallets should be considered a crucial element in the development and sustainability of the cryptocurrency ecosystem.

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Multisig Wallet: The Future of Secure Crypto Transactions - Crypto Times

Yuri Molchan

Frontman of Ethereum sells some of his ETH as coin nears $2,000 level

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According todata shared by @lookonchain, an analytics platform that tracks large crypto transactions and transfers of "Smart Money" wallets, Vitalik Buterin sent nearly half a million worth of Ethereum to a major exchange.

After he did that, the Ethereum Foundation did the same but transferred a lot more Ethereum to the same platform nearly $30 million worth of it.

In the meantime, the second largest cryptocurrency, ETH, is trading at the $1,960 level. Santiment on-chain data company believes that ETH is on the cusp of breaking above $2,000.

Lookonchain shared that the vitalik.eth wallet was the first to move 200 Ethereum (worth about $400,000) to the U.S.-based Kraken exchange. Following Buterin's transaction, the Ethereum Foundation did the same but on a much bigger scale they shifted 15,000 ETH to Kraken as well.

Together with Buterin's crypto, that makes $40,000,000 USD in fiat. The second transaction was also noticed and highlighted by the popular crypto tracker Whale Alert.

It seems that Buterin just sells Ethereum from time to time in more or less the same amounts. As reported by U.Today earlier, in the middle of February, he sold 210 ETH for roughly $325,000 in the USDC stablecoin. Curiously, that chunk of ETH was also sold on Kraken.

Back then, Ethereum was trading at $1,545.

On March 13, he moved another 200 ETH to Kraken, selling it at the price of $1,656 per coin.

Santiment data aggregator reported on Friday that ETH had reached an eight-month high in flows to crypto exchanges. The analytics team believes that this may be a sign of an upcoming volatility increase similar to what it was like after the collapse of FTX in early November and the Merge in mid-September.

In a tweet that followed, Santiment added that while "sky-high active deposits" of ETH to exchanges are the highest since November last year, ETH is now showing signs of decoupling from BTC and may be about to break above the $2,000 level.

Besides, a record amount of ETH was burned at the end of this week, as U.Today reported. That was down to the meme coin season unwrapping at the moment the majority of meme coins run on Ethereum and so are being actively moved with high ETH fees, providing a great opportunity to burn ETH and decrease the circulating supply.

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Vitalik Buterin and ETH Foundation Sell $30 Million in Ethereum As ETH About to Break $2,000 - U.Today