Ethereum Classic, which trades as ETC, grew out of an ideological rift within the Ethereum community. The other version of the fork, which became Ethereum Classic, kept the hack in order to preserve the immutability proposed by blockchain technology. But the classic blockchain is far less popular than Ethereum today. Nonetheless, miners are piling into ETC, which might undermine some of the environmental benefits of The Merge.
Rigs are invested and facilities are set up with nowhere to go. The only viable option at the moment is Ethereum classic. Mining was a hugely lucrative business for those who got in early. The gold rush has unintended consequences, too, as its reliance on computational power exacerbated the global chip shortage over the past few years.
Learn more at Gitcoin's Privacy Policy. Millions in open source project funding We've helped thousands of projects and teams grow their open source ecosystems. Why build Web3? The internet has unlocked unprecedented opportunities for collaboration and creation. Now web3 technology like open source protocols and decentralized blockchains give us the ability to take that co-creation to a new scale. The Gitcoin community uses this technology to fund and build digital public goods projects that serve everyone, and solve our most immediate problems.
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KEY DIFFERENCES BETWEEN MENTORING AND COACHING IN THE WORKPLACE
Although we offer innovative and specific strategies through digital asset funds, an overarching theme runs through the investment guidance we provide to clients— focus on those things within your control. There are basically four principles that we attach great importance to: 1 Create clear, appropriate investment goals: An appropriate investment goal should be measureable and attainable.
Success should not depend on outsize investment returns or impractical saving or spending requirements. The allocation should be built upon reasonable expectations for risk and returns and use diversified investments to avoid exposure to unnecessary risks. Costs are forever. The lower your costs, the greater your share of an investment's return. And research suggests that lower-cost investments have tended to outperform higher-cost alternatives.
To hold onto even more of your return, manage for efficiency. You can't control the markets, but you can control the bite of costs and efficiency. In the face of market turmoil, some investors may find themselves making impulsive decisions or, conversely, becoming paralyzed, unable to implement an investment strategy or rebalance a portfolio as needed.
Discipline and perspective can help them remain committed to a long-term investment program through periods of market uncertainty. What are digital assets and how are they valued? Digital assets distributed ledger based electronic means of exchanges. Transactions involving them are secured by cryptography, and they have dedicated servers for verification of transactions and the creation of extra units.
The most popular of them are Bitcoin, Ethereum, Litecoin, etc. All digital assets are valued by price action, and as a result, almost total control is in the hand of the investing public. We are here to help you with any problems and questions you may encounter while using the platform and during your investment experience. MEV is also one of the key reasons why gas prices for transaction fees are volatile as bots competitively bid up gas prices to battle for opportunities.
This issue is not just for arbitrage trades — as will be seen below, any sensitive trade which may tip off sniper bots can lead to the transaction being exploited and the user losing money. With this understanding, we can now appreciate a potential solution to the MEV crisis and how this technology can be used to protect everyday users. An Overview of Flashbots As we discussed above, the main issue with sending public transactions directly on the Ethereum network is that all of our pending transactions in the mempool are visible to the rest of the network.
This means a sniper can search through any exploitable trade and attack it accordingly. With the introduction of Flashbots users are no longer at the mercy of these hyper-optimized sniper bots. Instead of using the public mempool, Flashbots allows users to send transactions as a bundle through the Flashbots relayer which directly delivers transactions to miners.
From there miners can choose to accept the Flashbots bundle transactions as if they were just like normal Ethereum transactions. A few important things to note: One of the main benefits of using Flashbots is users are able to keep their pre-transaction data private from sniper bots. The transaction data is only published after it is fully mined into the blockchain. In case a transaction is not included by a miner in the current block ie: other transactions may offer higher gas fees , developers using the Flashbots Protect API will have to continuously re-submit their bundle in each block until it is accepted by a miner.
This is a huge step forward towards preserving pre-transaction privacy for users. At the same time this brings forth a healthier and more robust market for gas prices instead of sniper bots competitively out-bidding each other. Another key benefit of Flashbots is it allows for a more efficient auction mechanism for MEV.
As discussed above, failed bids are kept off-chain which frees up the block space for everyone else, hence keeping gas costs lower. In the original example, the main issue was the arbitrage transaction was submitted through the public mempool for everyone to see. However, if the arbitrageur routed this transaction through the Flashbots relaying service, he would bypass the public mempool and directly submit the transaction to miners.
If for some reason the transaction was not included in the current block ie: block might be full or other transactions might have higher priority given higher gas fees , the arbitrageur could try again for the next block. Only after the transaction is mined does it become public for everyone to see which would make it too late for a sniper bot to front-run the trade. Although users can greatly benefit from Flashbots, sniping bots themselves can also use the Flashbots relayer for executing trades.
If a bot detected a potential arbitrage opportunity, it would be foolish to submit the transaction to the public mempool. Every other sniper bot will be listening to the pending transactions and aggressively bid up the transaction gas price until the arbitrage opportunity no longer remains profitable. Instead, the sniper bot which detected the arbitrage opportunity would be best suited to route the transaction through the Flashbots relayer where it can avoid having to reveal its transaction before it is confirmed.
This way the sniper bot can ensure the transaction will only be known until after it is mined into the blockchain. Once a bot detects the exposed private key, it would immediately transfer the entire ETH balance to a separate address it controls. Suppose the developer had a valuable NFT stored in this exploited address. The moment any ETH is sent to the exploited address, bots will detect the incoming transfer and immediately withdraw the funds to a separate address. Thankfully the developer can use Flashbots to save his NFT.
One of the cool features of Flashbots is that users can group multiple transactions into the same bundle provided they are atomic. This means the transaction has to be all or none — every transaction in the bundle needs to execute for it to be successfully sent through the Flashbots relayer. This sounds exactly like what we need in our case!
For those interested in the detailed JS code implementation check out the Github repository for this research project here. As can be seen below, the NFT in this example is trapped in the exploited address. The developer will have to compile these two transactions into a bundle. The first transaction will involve sending some ETH to the exploited address from the sponsor address to pay for the gas fees to transfer the NFT.
The second transaction will involve transferring the NFT itself to the sponsor address. If miners choose to include this bundle into the block then the developer has successfully rescued his NFT. When this happens the developer will have to re-submit his transaction until the miner finally includes it in the block ie: the developer could increase the gas fee to incentivize the miner to include it in the block faster.
Using this JS code the developer was able to successfully transfer the NFT from the exploited address. Notice how the sponsor address now has the NFT which was previously stuck in the exploited address. At the same time we can see the exploited address no longer has the NFT in its account, however, there is some ETH remaining from the sponsor's transaction note: we can be more accurate in terms of estimating the gas fees - in this case we just used an arbitrary 0.
This excess ETH would be sniped away immediately once it hits the exploited address. Suppose a developer released a flawed contract which allows any user to withdraw all of the funds from the contract. This is clearly a huge flaw in the contract because if the balance stored in the smart-contract is enough to cover gas fees, then it is an obvious trade to withdraw all of the funds ASAP.
This contract can be viewed on Goerli Etherscan here and originally had a balance of 0. Even though this sniper bot may have paid a higher gas fee to expedite the transaction, ironically this transaction will be front-runned by more sophisticated sniper-bots. Why is this so? Anytime a transaction is made with a smart-contract on Ethereum, there will be associated call data encoded which is available for anyone to see when it hits the mempool. This data is visible to all sniper bots scanning the mempool.
This data field is in hex and is not decipherable to humans, however, sophisticated sniper bots can take this data and simulate what the transaction would look like if they ran this transaction themselves. Therefore, if this transaction is left in the public mempool, then these sniper bots can still front-run by bidding up higher gas transaction fees.
It might get to a point where the sniper bots are paying 0. From this example we can see how these sniper bots can aggressively bid up the price of gas fees for the entire network due to the competitive gas auctions. Therefore, we must prevent this transaction from being detected by other sniper bots before it is mined into the blockchain in order to successfully exploit this contract.
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