An unanticipated congestion in the Ethereum network has created a great deal of hue and cry amongst its customers as well as node operators. In the wake of the congestion, ETH costs started sinking as well as touched a reduced of $405.29. It ends up thatFcoin, a cryptocurrency exchange, could be the culprit behind Ethereum’s problem.
Reportedly, Fcoin implemented a new voting system which supposedly ‘incentivizes a Sybil assault’. A Sybil assault is an act of creating multitudes of phony identifications to get a disproportionately huge impact on a network. MyCrypto called the ballot mechanism to be ‘mind-numbingly despicable’ in a recent Tweet.
Mycrypto has been quoted, as claiming,” Unsurprisingly, individuals that are financially incentivized to get a shit-token detailed on a shit-exchange are sending out these tokens en masse to different accounts on the blockchain then to different accounts on the ‘exchange-who-must-not-be-named’ […] and also hence resulting partly (or totally?) in the network congestion & high deal charges that we’ve experienced these past few days.”
Fcoin took on a new voting system quite unlike the conventional ones normally made use of by various other crypto exchanges. The voting system permits customers to choose tokens to be provided on the system by means of deposits. Therefore, one down payment equals one vote. As a result, numerous symbols made deposits for obtaining votes leading to clogging of the network.
A Chinese crypto market collector supposedly found the trading volume on Fcoin to usually be above $5 billion over a span of 24 Hr. The trading quantity is attributed to a trans charge mining earnings model. The platform settles trading fees paid in BTC or ETH with its FEET tokens, up until 51 percent is distributed to the general public, making traders the owner of the exchange, FCoin founder Jian Zhang said in a meeting with Fred Wang, owner of Mars Financing.
Zhang insisted that Fcoin’s revenue design is just a ‘misconstrued innovation’. Inning accordance with records, the exchanges which adopted the trans cost mining design saw their trading volumes top Binance. An additional cryptocurrency exchange – Coinex – saw its trading volume shoot up by over 24000% in a 24 hour duration after embracing the brand-new model.
A mechanical engineer turned journalist, Raja Shekar takes a keen interest in the study and analysis of cryptocurrencies and blockchain strategy. With the cryptocurrency world blooming in the recent days, he finds great interest in monitoring their growth and gathering every possible piece of information about them. He works as a crypto-journalist for the website Custom Coins.