Ethereums creator, Vitalik Buterin, envisioned the cryptocurrency and blockchain as an extension of Bitcoin. Therefore, Ethereum is more than a store of value; it is a peer-to-peer network that supports the expansion of its blockchain ecosystem, where users develop their own Dapps, DAOs, and NFTs.

The smart contract function gives a prominent feature of Ethereum, a revolutionary technology enhancing collaborations in online environments. The process makes asset exchanges more efficient by automating transactions based on predetermined terms and conditions. Once the two parties complete their roles, the smart contract is executed and cannot be reversed or altered.

However, Ethereum smart contracts pose several security challenges, considering front-running attacks and logical errors are common. Besides, attackers take advantage of timestamps and manipulate them.

Thats why Ethereums competitors developed their unique smart contracts functions to mitigate these challenges. But are they really that efficient and safe?

Besides the security issue, smart contracts on Ethereum are praised for their numerous advantages for users. Theyre cost-efficient, based on decentralization and automated. Therefore, they can provide conditional payments and programmable money through the use of a flexible language that supports multiple computational instructions.

Hence, Ethereum smart contracts can be used in industries like decentralized finance, supply chain management, real estate and even healthcare. Still, institutions might choose smart contracts offered by competitors.

Solana is a Web3 infrastructure system launched later than Ethereum in 2022, so its not as popular. However, its considered by many as a better alternative to Ethereum due to its low cost and fast transaction processing.

Solanas smart contracts support building decentralized applications more efficiently and leverage a superior consensus mechanism. The Proof of History technology ensures security is prioritized during transaction processing, which is a plus compared to Ethereum. Moreover, Solanas smart contract tools, such as Solana CLI and Serum DEX, enhance the blockchains development.

Cardano was released in 2017 and it provides better scalability compared to Ethereum due to its layered architecture. Cardanos blockchain is a productive environment for smart contract development, as it was designed through unique methods on a research-driven approach, making it stable and secure.

One of the best things about Cardano is its energy efficiency features that ensure low gas fees and high transaction speeds. Hence, Cardano is great for creating smart contracts because its native language is designed to allow versatility among multiple industries, supporting the growing demand for the blockchain to be used for smart contracts.

Ethereums smart contract function is based on the Turing system that includes the Solidity programming language and the EVM (Ethereum Virtual Machine). While most blockchains work similarly, Stellar is different.

The blockchain uses numerous programming languages, such as Python or PHP, through which transactions are executed with constraints. Smart contracts are powered by a multi-signature feature that the two parties have to sign, while Atomicity technology combines multiple operations in a single transaction. Hence, if one operation fails to complete, the other smart contracts will be triggered anyway.

The distributed ledger technology can be leveraged for smart contracts through the Docker container, a system that defines application services. It may be more challenging to run smart contracts on the Hyperledger Fabric network because the technology is more complex.

However, its an intricate project because it supports smart contracts while running on top of the operating system. At the same time, it enhances high-level programming features through the Turing complete system and uses the key-value pair data model. The blockchain network is private, so it requires approval from certificate authorities (CA).

Considering the multiple competitors to Ethereum, were wondering if the technology behind it will ever evolve. The main problem of Ethereum is the rising costs and lack of scalability, so new blockchains can always appear and deliver better services.

Still, Ethereum has a great potential of becoming the best blockchain and smart contract support. Using Solidity, smart contract gas costs can become efficient through the following functions:

Caching storage in memory to avoid storage loads;

Using calldata to enhance runtime execution;

Making some variables immutable to avoid storage-writing operations;

Leveraging private constants instead of public;

At the same time, smart contracts can be upgraded to fix vulnerabilities and add new features. However, improvement may add a new level of complexity that can increase flaws in the system. Moreover, centralization risks may appear due to individuals performing unauthorized updates, which is why users must trust developers in this process.

Recently, Ethereums team provided a development roadmap for the blockchain that would solve its prominent issues. There are currently six stages of improvement, starting with the Merge, which has already been deployed, and ending with the Splurge, which will handle minor fixtures. In between the two, Ethereum plans to increase the number of transactions per second, mitigate risks and make block verification more efficient.

Among these updates, an additional set of EIPs, or Ethereum Improvement Proposals, will contribute to reduced end-user costs, efficient networks, and handling of complex operations. Still, a primary interest is given to improving smart contract execution. For instance, the EIP-5656 operation will deal with copying data in memory that will optimize smart contracts. At the same time, the EIP-6780 will allow smart contracts to be deleted automatically from the blockchain to free up storage space. EIP-1153 will ensure smart contracts are more flexible and gas will be consumed more efficiently. Therefore, the upcoming years will constitute a better and stronger smart contract function for Ethereum.

Ethereum is mainly known for a diverse blockchain, where Dapps, DAOs and NFTs emerged and increased in popularity. But none of these features would see light without the smart contract technology, which enhances automatization and fairness in the exchange between two parties. The technology is revolutionizing and is already introduced in real-life use cases in industries like healthcare and finance.

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Are Ethereums smart contracts better than its competitors? - Tucson Weekly

Key Takeaways

We all rely on GPS navigation these days, from Google Maps to Waze. However, these systems have limitations. Theyre centralized, meaning one company controls the data, which can be outdated or slow. Privacy concerns arise when constantly sending location data. Plus, maintaining these systems can be expensive.

Blockchain technology offers a potential solution. Unlike GPS, its decentralized, with data spread across a network of computers. This can lead to several improvements:

A key aspect of blockchain maps is proof-of-location (PoL), which ensures that a user or object is genuinely where it claims to be.

Smart contracts, self-executing agreements on the blockchain, power PoL. They handle:

While promising, PoL faces challenges:

The limitations of current GPS-based systems highlight the potential of blockchain maps. Decentralization offers faster updates, enhanced privacy, and lower costs. Proof-of-location (PoL) further unlocks exciting possibilities for supply chain verification, insurance claims, remote account verification, and more all powered by secure and tamper-proof smart contracts.

However, challenges remain. Reliance on external data, scalability concerns, and the need for standardization require attention. However, by addressing these issues and allowing collaboration, blockchain maps and PoL can guide us toward a brighter future for location-based servicesone that is more secure, efficient, and respectful of user privacy.

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Mapping on the Blockchain and How does it work? - UseTheBitcoin

Fhenix, which develops confidentiality-enabling Layer 2 blockchain powered by fully homomorphic encryption, has announced the close of a $15 million series A fundraising round led by Hack VC with participation from Dao5, Amber Group, Primitive, GSR, Collider and Stake Capital, among others. This brings the projects total funding to date to $22 million. The company plans to use these funds to support the initial stage of its open testnet, dubbed Helium, which will enable developers to deploy smart contracts to the Fhenix network for the first time.

Fully homomorphic encryption (FHE) is a novel form of cryptography that allows data to be computed blindly without ever needing to be decrypted. Fhenix is the first blockchain to natively integrate FHE in order to deliver an EVM-compatible smart contract platform that allows developers to encrypt all or part of their Solidity-based applications using familiar tools without any prior knowledge of FHE encryption.

"My life's work has been research into secure computation with the goal of bringing confidentiality onchain. After exploring every available technical solution to this problem I came to the conclusion FHE is the best possible solution. The launch of the Fhenix testnet is an important step towards bringing encrypted computation onchain," said Guy Zyskind, co-founder of Fhenix.

Fhenix recently announced a technical partnership with EigenLayer around the development of FHE Coprocessors, which enable host chainswhether that be Ethereum itself, L2s, or L3sto offload specific computational tasks to a designated processor, enabling developers on any EVM-compatible chain to integrate encrypted computation into their application logic.

After scaling, confidentiality is the next major hurdle Ethereum needs to solve in order to reach mainstream adoption. FHE is the most elegant solution to the problem of encryption because, unlike existing confidentiality solutions based on zero knowledge technology, it allows for end-to-end computation of encrypted data, said Guy Itzhaki, CEO of Fhenix.

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Fhenix raises $15 million Series A to bring confidentially to the Ethereum blockchain - CTech

Infinite mint attack, explained

An infinite mint attack occurs when an attacker manipulates a contracts code to continuously mint new tokens beyond the authorized supply limit.

This kind of hack is most common in decentralized finance (DeFi) protocols. The attack compromises the integrity and value of a cryptocurrency or token by creating an infinite quantity of them.

For instance, a hacker exploited the Paid networks smart contract vulnerability to mint and burn tokens, resulting in a $180-million loss and an 85% drop in PAIDs value. Over 2.5 million PAID tokens were converted to Ether ETHUSD before the attack was stopped. The network reimbursed users, dispelling rumors of an inside job (rug pull).

The malicious actor might profit from such attacks by selling the tokens created illegally or by interfering with the impacted blockchain networks regular operations. The prevalence of infinite mint attacks emphasizes how crucial it is to perform thorough code audits and incorporate security measures into smart contract development to protect against exploits of this kind.

How does an infinite mint attack work?

To create a loophole that allows the attacker to mint an infinite number of tokens, an infinite mint attack targets vulnerabilities in smart contracts, specifically those related to token minting functionalities.

Step 1: Vulnerability identification

The attacks methodology entails locating logical weaknesses in the contract, usually related to input validation or access control mechanisms. Once the vulnerability is found, the attacker creates a transaction that takes advantage of it, causing the contract to mint new tokens without the necessary authorization or verification. This vulnerability might allow for bypassing the intended limitations on the number of tokens that can be created.

Step 2: Exploitation

The vulnerability is triggered by a malicious transaction that the attacker constructs. This could entail changing parameters, executing particular functions, or taking advantage of unforeseen connections between various code segments.

Step 3: Unlimited mining and token dumping

The exploit allows the attacker to issue tokens in excess of what the protocols architecture intended. This token flood may cause inflation, which would lower the value of the coin linked to the tokens and could result in losses for various stakeholders, including investors and users.

Token dumping is the practice of an attacker swiftly flooding the market with freshly created tokens and then exchanging them for stablecoins or other cryptocurrencies. The original tokens value is sharply diminished by this unexpected increase in supply, causing a price collapse. However, selling the inflated tokens before the market has a chance to benefit the attacker.

Consequences of an infinite mint attack

An infinite mint attack leads to the rapid devaluation of a tokens value, financial losses and ecosystem disruption.

An infinite mint attack creates an endless quantity of tokens or cryptocurrency, instantly devaluing the affected asset and resulting in large losses for users and investors. This compromises the integrity of the entire ecosystem by undermining confidence in the impacted blockchain network and the decentralized apps that are connected to it.

Furthermore, by selling the inflated tokens before the market fully reacts, the attacker can benefit and possibly leave others holding worthless assets. As a result, investors may find it difficult or impossible to sell their assets at a fair price if the attack causes a liquidity crisis.

For instance, during the December 2020 Cover Protocol attack, the tokens value fell from over $700 to less than $5 in a matter of hours, and investors who held COVER tokens suffered financial losses. The hackers minted over 40 quintillion coins.

The collapse of the tokens value can disrupt the entire ecosystem, including decentralized applications (DApps), exchanges and other services that rely on the tokens stability. The attack may result in legal issues and regulatory scrutiny of the project, which could result in fines or other penalties.

Infinite mint attack vs. reentrancy attack

An infinite mint attack aims to create a limitless number of tokens, whereas a reentrancy attack employs withdrawal mechanisms to continually drain funds.

Infinite mint attacks take advantage of flaws in the token creation process to generate an unlimited supply, driving down the value and costing investors losses.

Reentrancy attacks, on the other hand, concentrate on the withdrawal procedure, giving attackers the ability to continuously drain money from a contract before it has a chance to update its balances.

Although any attack can have disastrous outcomes, it is essential to understand the differences to develop effective mitigation techniques.

The key differences between an infinite mint attack and a reentrancy attack are:

How to prevent an infinite mint attack in crypto

Cryptocurrency projects can greatly lower the chance of becoming the target of an endless mint attack and safeguard community members investments by emphasizing security and adopting preventative measures.

It needs a multifaceted strategy that puts security first at every stage of a cryptocurrency project to prevent infinite mint attacks. It is crucial to have thorough and frequent smart contract audits performed by independent security experts. These audits carefully check the code for flaws that could be used to mint infinite amounts of money.

Strong access controls must be in place; minting powers should only be granted to authorized parties; and multisignature wallets should be used for increased security. Real-time monitoring tools are necessary to quickly respond to possible attacks and identify any odd transaction patterns or abrupt surges in the supply of tokens.

Projects should also have strong backup plans ready to handle any possible attacks quickly and minimize damage. This entails having open lines of communication with exchanges, wallet providers and the community at large to anticipate possible problems and plan solutions.

See the article here:

What is an infinite mint attack, and how does it work? - TradingView

SPONSORED POST*

Space and Time (SxT), the Verifiable Compute Layer for AI x Blockchain, today released Proof of SQL, a high performance zero-knowledge prover for processing data, on GitHub.

Proof of SQL is a novel ZK proof developed by SxT, which cryptographically guarantees that SQL database queries were computed accurately against untampered data. Using Proof of SQL, developers can compute over both onchain and offchain datasets in a trustless manner, proving the result back to their smart contract just-in-time during a transaction to power more sophisticated DeFi protocols with data-driven smart contracts.

Space and Time is thrilled to lead Web3 into a new era of data-driven smart contracts and the next generation of DeFi, said Jay White, PhD, Co-Founder and Head of Research at SxT, and the inventor of the Proof of SQL protocol. Our team pioneered sub-second ZK proofs so that smart contracts and AI agents can ask questions about a chains activity, as well as offchain data, and receive back trustless SQL query results onchain during a transaction without having to wait for 30 minute proof times.

Proof of SQL was released in alpha to a select group of SxT customers in August. With todays release on GitHub, the protocol is now available to the public. Community members can run trustless queries on SxT on the Space and Time Studio, and developers can download the repository directly from GitHub.

Proof of SQL is the first ZK prover that runs sub-second. In the latest benchmarks run by the SxT cryptography team, the protocol can execute analytic queries over 100k-row tables in less than a second on a single GPU, and can aggregate over millions of rows of indexed data within Ethereum block time on a single NVIDIA T4.

Proof of SQL offers a significantly more performant architecture for processing large volumes of data than generalized zkVMs and co-processors. While generalized zkVMs offer an extensible solution for arbitrary computations, data processing is slow to prove.

Proof of SQL can be integrated with these zkVMs to provide verifiable source data that arbitrary code can be executed over. Space and Time encourages and invites contributions from the community, as well as other ZKP engineering teams to collaborate in the repo. The prover can be integrated into any SQL database (such as Google BigQuery), centralized or decentralized, and is already securing some of the most prominent Web3 apps, financial institutions, and enterprises.

Space and Time is the verifiable compute layer for AI x blockchain that joins tamperproof onchain and offchain data to deliver enterprise use cases to smart contracts and LLMs. Space and Time has developed a novel cryptography called Proof of SQL that allows developers to connect analytics directly to smart contracts, opening up a wealth of powerful new use cases and business logic on blockchain technology. Space and Time is built from the ground up as a multichain data platform for developers in financial services, gaming, DeFi, or any project requiring verifiable data across enterprise, blockchain and AI.

For more information, visit: Website | Twitter | Discord | Telegram | LinkedIn | YouTube

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Space and Time Releases Sub-Second ZK Prover under Open Software License - The Cryptonomist