Saturday, August 28, 2021

Lisk announces arrival of ‘new era’ after successful completion of migration to Lisk Mainnet v3


The Lisk Mainnet v2 completed the migration to Lisk Mainnet v3 on August 21, which is the biggest protocol change in Lisk blockchain history, Lisk wrote on their website. Features of the 'new era' include an extremely secure new account address system, up to 98.64% cheaper transactions after moving to a dynamic fee system, and ensured full immutability of transactions.

Migration eliminates all weaknesses of the Lisk Mainnet v2
The migration eliminates all weaknesses of the Lisk Mainnet v2 related to accounts, the consensus algorithm, and fees. The blockchain is now almost fully prepared for the upcoming interoperability release.

With v3, the new account address system is extremely secure with built-in error detection for typos. This does away with the need for account initialization. The previous address and ID system was retired and all current accounts were migrated. As a result, addresses have become longer, virtually eliminating the risk of address collisions and making sure such addresses resist preimage attacks.

Account private and public keys and the 12 word mnemonic passphrase have not changed. It's guaranteed that typos of up to 4 characters in the address will be detected.

Almost 100% cheaper transactions
With the newly introduced dynamic fee system under Lisk v3, transactions will be as much as 98.64% cheaper. This is because the minimum transaction fee has dropped from 0.1 LSK to 0.00136 LSK in an effort to make fees more competitive. By setting a higher fee and the same nonce as the transaction a user wants to overwrite, they can do so as long as the transaction has not been included in the block yet.

Transactions are non-reversible
Another important change that goes with Lisk v3 is total immutability. In other words, transactions are 100% non-reversible. This is the way of the future with interoperability and sidechains coming into the Lisk ecosystem as it prepares for v4. When Lisk Core v4 is released, blockchain applications will be able to support transactions across multiple blockchains. Lisk's newly integrated BFT consensus algorithm ensures they can't be reversed.

Japan’s FSA plots harsher digital currency regulation


The Financial Services Agency, Japan's market regulator, is taking its first steps towards drafting a more restrictive policy for regulating digital currency in the country, in a move that looks set to tighten the rules for digital currency sector businesses.

According to reports in local media Jiji Press, the rule changes are being brought in with a view to better protect consumers, with the regulator having already begun to solicit views on how the new policy could shape up.

The regulations are expected to be brought in before summer 2022, with a view to providing greater investor protections as quickly as possible. With an eye on continuing to encourage innovation and development, the FSA has said the new rules would bring much needed stability to the sector.

It follows the creation of a dedicated panel of experts last month to look at the issues of regulation in decentralized finance, joining other ongoing efforts to address developments in central bank digital currencies and digital currency more broadly.

Japan has historically taken a progressive approach to digital currency, encouraging the development of initiatives in digital currency and blockchain technology. Some of the earliest crypto trading platforms and exchanges were founded in Japan, and the country continues to be a regional hub for trading in East Asia.

Following the substantial Coincheck hack in 2019, a series of new regulations were brought in to strengthen the security at exchanges, and to offer investors a better quality of protection against future attacks. As part of the measures, the FSA has required digital currency platforms operating in the country to register and adhere to its compliance requirements.

The measures have failed to prevent repeat attacks. However, with new regulations coming down the track, and in particular the Financial Action Task Force's (FATF) Travel Rule which is expected to be adopted by 2022, the regulator is hoping to provide more robust oversight for the sector.