The Protocol: Ethereum Struggles With Sprawl as Optimism Airdrops $27M

Last week marked the one-year anniversary of Ethereum’s historic “Merge” – the shift to a more energy-efficient proof-of-stake network. But in some ways the largest smart-contract blockchain has become a victim of its own success: Staking is so popular that the number of network validators is mushrooming toward 1 million, introducing new concerns related to the sprawl. We discuss how Ethereum developers are addressing the issue with the EIP-7514 proposal.

The Protocol: The CFTC Is Cracking Down on Crypto

The U.S. Commodity Futures Trading Commission placed a trio of decentralized crypto platforms into its crosshairs last week. An aggressive set of charges from the CFTC – which zeroed in on how the trading platforms handle certain kinds of third-party token swaps – contrasted with the regulator’s more lenient image.

The Protocol: Blockchains Keep Launching, From Sei to Shibarium

In this week’s issue, we cover Coinbase’s launch of “Base,” a layer-2 network atop Ethereum, along with the crypto community’s reaction to PayPal’s new stablecoin and the brouhaha over Matter Labs’ use of Polygon-crafted open-source software. The Protocol is CoinDesk’s weekly newsletter devoted to blockchain and crypto technology.