The biggest letdowns in crypto and blockchain in 2021

The year 2021 was an essential year for blockchain innovation and cryptocurrency. It has actually seen both mainstream acceptance and extensive adoption. Many organizations, consisting of big corporations such as Tesla, Goldman Sachs and Bank of America, have actually taken steps to end up being part of the ecosystem.

Nevertheless, there were some problems and occasions that shook the mood of cryptocurrency financiers and the whole community.

VanEcks spot Bitcoin ETF was turned down by the SEC

Todays SEC upgrade denying approval for our physical bitcoin ETF disappointed us. We believe financiers should have the opportunity to access #BTC through a controlled fund. A non-futures ETF structure would be better. @tyler @gaborgurbacs
— Jan van Eck (@JanvanEck3) November 12, 2021

Because July 2013, when Tyler Winklevoss and Cameron Winklevoss tried to launch the “Winklevoss Bitcoin Trust”, the SEC has been attempting to approve a spot exchange for Bitcoin.

The monetary regulator declined Van Ecks proposition to produce an area Bitcoin ETF on Nov. 12. This triggered the price of the flagship cryptocurrency, Bitcoin, to start its descent spiral.

According to information from Cointelegraph Markets Pro, Bitcoin increased to an all-time high of $68,789.63 after the United States Security and Exchange Commission authorized ProShares Bitcoin futures exchange-traded funds fund. ProShares Bitcoin Strategy ETF trades under ticker BITO and had the largest ever first day for any ETF in terms natural volume. This demonstrates how excitedly waited for the launch.

Jan van Eck, VanEcks CEO, was not pleased with the rejection.

Related: VanEcks Bitcoin area ETF Shunt enhances SECs outlook relating to crypto

The SEC is Not That Into You (Spot bitcoin ETF Filings). = My summary of @JSeyffs terrific note today, discussing why area Bitcoin hopes are so bleak (sadly). It is easy to conclude that the SEC has actually set a high bar and is inconsistent in their expectations. pic.twitter.com/7HRDReWF2N
— Eric Balchunas (@EricBalchunas) November 18, 2021

Balchunas has actually voiced issue about the rejection by the SEC of several spot ETF applications. He is now a popular voice in tracking the most current ETF developments around cryptocurrencies such as Bitcoin and Ether (ETH).

Ethereum network: Gas prices out of control

In 2021, the Ethereum network was updated with a London tough fork. This put ETH on a deflationary path thanks to Ethereum Improvement Proposal 1559 (EIP). At the time of writing, 1.244 Million Ethereum had been burned and is valued at more than $4.96 Billion.

Vitalik Buterin (co-founder of Ethereum) recommended that the EIP 4448 upgrade and EIP 4490 be executed to attend to the continuous issue. This would permit for short-lived fixes using a strategy referred to as data sharding. This would reduce the cost of zk-Rollups on Ethereum.

Speak out! #eth #gasfees pic.twitter.com/JdO3j0pgtL
— Ceeebastian (@ceeebastian), December 18, 2021

The introduction of the burn system saw a boost in Ethereum gas costs. Gwei is Ethers tiniest system, and equals 0.000000001 Ethereum.

It stays to be seen if the proposition will be approved by the networks governance structure and if these upgrades will work in decreasing gas costs.

Related: Londons Impact: Ethereum 2.0s Staking Contract ends up being the largest ETH holder

On February 23, gas fees for the network reached a record high of 373.8 gwei. In spite of gas charges appearing to be under control between May and Aug, there have actually been several spikes since that date, which has actually been extremely undesirable for DeFi investors. This has actually caused numerous DeFi protocols and investors switching to alternative blockchain networks such as Solana, Polygon, Binance Smart Chain, and Solana.

Solana network: DDoS attack and blackout

If you arent helping @solana focus on these metrics, if your lies or perpetuating lies, and if it seems like youre attempting to win the haters ball with your tweet threads, you need to save them until youre all set for scaling crypto. Fuck off till then.
— Raj Gokalgm (@rajgokal) December 12, 2021.

The network was quickly congested by another DDoS attack Dec. 9, which triggered a short-lived outage on Dec. 4. It managed to stay online during the attack.

The network has actually since grown to be the second most popular blockchain for decentralized applications releases, after Ethereum. According to DefiLama, the TVL for DeFi procedures currently stands at nearly $17 billion. On May 10, the TVL reached an all-time record high of $31.72 trillion, at the peak of the last bull run.

Related: Scalability or stability? Solana network outages indicate that work is still required.

Solana was launched in April 2019 and has rapidly grown to be one of the most popular blockchain networks with an overall worth locked of almost $12 billion. SOL, the native token of Solana, has actually seen its rate rise practically 130 times from its existing $180 cost. On Nov. 7, the token reached a record high of $260.06.

In September, the network experienced a 17-hour outage from Sep. 14 to 15. A DDoS attack is when a large number or botnet of collaborated gadgets overwhelm a network with fake traffic to attempt to take it offline.

In 2021, the Ethereum network was updated with a London difficult fork. Solana was released in April 2019 and has actually rapidly grown to be one of the most popular blockchain networks with a total value locked of nearly $12 billion. The Solana network experienced an almost six-hour-long blackout on December 4, at 13:46 UTC. A DDoS attack is when a large number or botnet of collaborated devices overwhelm a network with fake traffic to try to take it offline.

Someone forgot to turn on “genuine consumer orders” that are not bots for serum. Now that solana has actually been restored, it is possible.
— Ks (@scott_lew_is December 4, 2020.

Solanas efforts to develop on-chain code saw a significant increase in day-to-day submissions to GitHub following the DDoS attack. The network had the ability to go beyond Polkadot, Cardano and end up being the most advanced blockchain network between November 12 and December 13.

The Solana network experienced an almost six-hour-long blackout on December 4, at 13:46 UTC. The mainnet beta cluster stopped producing blocks at slot 53180,900. This prevented brand-new deals from being confirmed by the blockchain. This outage was slammed by developers and traders, who required to Twitter for criticism.

There are numerous things to look forward too.

Scott Lewis, cofounder of DeFi Pulse was among those critics. He cited Serums order books information as evidence of an absence “real consumer orders.”.

These are just a few of the numerous disappointments that will be dealt with by the crypto community in 2021. However, it is clear that digital currency usage is growing quicker than ever.

Although the attack was credited to Solanas design fundamentals and its usage of the proof-of-history consensus approach, the designers still appear to believe in the networks potential. Raj Gokal, co-founder of Solana, spoke out on Twitter about the DDoS attack.

Related: DeFi hacks to Binance Smart Chain increase as TVL and volume increases.

The network has considering that grown to be the second most popular blockchain for decentralized applications implementations, after Ethereum.

PancakeBunny: 200 million was lost in a flash-loan exploitSpartan Protocol: Exploit caused a loss of $50 millionUranium Finance: $50 million stolenMeerkat finance: Rugpull led the loss of $31 millionpNetwork: Hacked with losses of $12.7 million and $12.7 million in BTCBogged Finance: Flash loan exploit drained pipes $3 millionBurgerSwap: $7.2 million drained pipes by security exploitBelt Finance: $6.3 million.

Given that this list is not exhaustive, its safe to presume that hacks and security breaches have actually led to losses of numerous million of dollars over the period that the network functioned. These security defects were not the only ones that have happened. There have likewise been phishing attacks versus PancakeSwap, Cream Finances decentralized exchange.

The Binance ecosystem has a number of services to this issue. Project Shield is the current initiative. This security audit program will offer extra security to users who want to expose themselves to ERC-20 and BEP-20 tokens on Binance.

The cryptocurrency domain is awash with developments such as GameFi, NFTs and Metaverse. One development can change the landscape of art, video gaming, and finance.
Learn more.

Security exploits with the Binance Smart Chain network.

Binance Smart Chain is the parallel to Binance Chain. Both blockchains are developed and maintained by cryptocurrency exchange Binance. BSC was introduced in August 2020, shortly after its preliminary unveiling in April 2020.

Because its creation, nevertheless, both the network and procedures that run on it have actually been highly vulnerable to security attacks. Here is a list below of DeFi protocols that were hacked or made use of on BSC.

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