Avalanche Pauses Block Production During Inscription Wave Launch

Here are some of the major developments in the world of crypto over the past few days.
  some of the major developments in the world of crypto
some of the major developments in the world of crypto

Avalanche, a decentralized application (DApp) platform, faced a significant technical disruption affecting the block production of its proof-of-stake (PoS) blockchain. The issue, which occurred on February 23 at 12:02:27 pm UTC, led to block production problems on Avalanche's primary network. This disruption halted the production of blocks on the P-Chain, X-Chain, and C-chain subnets, with the last block being produced over an hour earlier. Avalanche issued an official alert regarding the block finalization stall, stating that developers were investigating the issue, which prevented blocks from being accepted on the Primary Network.

Block production is crucial for the stability and continuity of blockchain networks, as it involves validating and recording transactions. Interruptions in this process cause delays in transaction processing, affecting the network's functionality. Kevin Sekniqi, the co-founder of Ava Labs, the team behind Avalanche, mentioned that the halt in block production might be linked to a "new inscription wave" launched an hour before the problems occurred. He suggested that the issue could be an "esoteric bug from some edge case" and mentioned that it was likely a mempool handling issue with inscriptions. Sekniqi reassured the community that the team was investigating the problem and that it would be resolved quickly.

Later, Sekniqi clarified that the issue was a code-related bug unrelated to performance handling, explaining that while inscriptions may have hit the edge case, they did not affect performance. Similar reports of block production halting on Avalanche surfaced on March 23, 2023, when the C-chain stopped producing blocks. Sekniqi explained that the network had been unstable due to a bug with its v1.9.12 and that the team deployed a fix to stabilize the network.

Texas Blockchain Council and Riot Platforms File Lawsuit Against Energy Officials Over Crypto Mining Data

The Texas Blockchain Council (TBC) and mining firm Riot Platforms have filed a lawsuit against the U.S. Department of Energy, Energy Information Administration (EIA), and Office of Management and Budget (OMB) over an attempt to collect data on energy usage from crypto miners. The lawsuit, filed in the United States District Court for the Western District of Texas, alleges that the EIA's survey on electricity usage, mandated under threat of fines and penalties, is politically motivated and an overreach of government authority. The TBC argued that requiring mining firms to provide potentially proprietary information to the government and making it public represents an infringement on their rights.

The TBC claimed that the EIA survey was orchestrated by Senator Elizabeth Warren and the White House and requested a temporary restraining order to stop the data collection. Texas Blockchain Council President Lee Bratcher stated that the lawsuit is not just about resisting a single request for information but about defending against a broader pattern of regulatory overreach that could stifle innovation and economic growth. The Department of Energy defended the data collection as an "emergency" request to create a "baseline snapshot" of energy consumption by miners nationwide, but opponents question the urgency and suggest political motivations behind the move.

Minnesota Representative Tom Emmer sent a letter to OMB Director Shalanda Young questioning the motivation behind the EIA survey, suggesting that the Biden administration may be using climate change policies as a pretext to target crypto miners. A hearing on the lawsuit is scheduled for Feb. 23 in Texas, ahead of the EIA deadline. Cointelegraph reached out to Senator Warren's office for comment but did not receive a response.

SEC seeks comments on Bitwise, Grayscale Bitcoin ETF options

The U.S. Securities and Exchange Commission (SEC) is considering a proposed rule change that would enable the trading of options for Bitcoin exchange-traded funds (ETFs) such as the Bitwise Bitcoin ETF (BITC) and the Grayscale Bitcoin Trust (GBTC). This move comes after the New York Stock Exchange (NYSE) requested the rule change, which would allow options trading for "any trust that holds Bitcoin." If approved, these options would trade similarly to options on other ETFs, including commodities ETFs, following standard regulations and procedures.

BlackRock is also seeking approval for a similar rule change to list options on its Bitcoin ETF in collaboration with the Chicago Board Options Exchange (CBOE). The SEC's decision on these proposals is expected by September 2024 at the latest. Options are financial derivatives that provide buyers the right, but not the obligation, to buy or sell an asset at a specified price by a certain date. This move towards allowing options trading on Bitcoin ETFs is seen as a step towards supporting price discovery and providing investors with more tools to navigate market conditions and achieve their investment goals.

The SEC has previously approved the trading of options on other commodity ETFs held by trusts, such as the SPDR Gold Trust and iShares Silver Trust. Grayscale CEO Michael Sonnenshein has been advocating for regulators to approve crypto derivatives products, stating that options can help investors better manage risk and achieve desired outcomes. However, like any investment product, options trading carries risks and may not be suitable for all investors. The SEC recently approved the trading of spot Bitcoin ETFs on Wall Street on Jan. 10, marking a significant development in the cryptocurrency market.

Related Stories

No stories found.
Outlook Business & Money