Welcome to The Protocol
CoinDesk’s weekly wrap-up of the most significant developments in cryptocurrency technology. I’m Ben Schiller, managing editor at CoinDesk. In this edition, we cover:
- Ethereum’s Pectra Upgrade Launches
- Avalanche Visa Card Now Available
- Ethereum Foundation Executive Director Departs
- Hackers Exploit GitHub to Steal Bitcoin
Network News
PECTRA UPGRADE GOES LIVE ON TESTNET: Ethereum’s highly anticipated Pectra upgrade was activated on the Holesky testnet on February 24, although it did not finalize as swiftly as expected. This comprehensive hard fork integrates 11 significant upgrades, known as “Ethereum Improvement Proposals” (EIPs), into a single implementation. A primary focus is EIP-7702, crafted by Ethereum co-founder Vitalik Buterin in just 22 minutes, which aims to enhance the user experience for cryptocurrency wallets. This proposal will introduce smart contract capabilities to wallets, advancing a broader initiative to implement account abstraction in Ethereum—an approach designed to streamline wallet usability and reduce clunkiness.
Another vital component, EIP-7251, will permit validators to increase their maximum stake from 32 to 2,048 ETH. This change is designed to alleviate some of the technical challenges encountered by validators today. Presently, those staking more than 32 ETH must distribute their holdings across multiple validators, complicating the staking process. By raising the maximum stake limit and consolidating validators, the upgrade could expedite the setup of new nodes. Holesky will be the first of two testnets to simulate Pectra, with the next trial scheduled for the Sepolia testnet on March 5. However, Christine Kim, Vice President of Research at Galaxy, indicated that developers might delay this based on the scale of issues encountered. Once Pectra is operational on both testnets, developers will announce a final date for its activation on the Ethereum mainnet. — Margaux Nijkerk Read more.
MIYAGUCHI STEPS DOWN FROM ETHEREUM FOUNDATION ROLE: Aya Miyaguchi, the Executive Director of the Ethereum Foundation, is transitioning from her current position to take on a new role as the president of the organization. This announcement comes amid a leadership overhaul within the nonprofit as Ethereum struggles to retain its appeal for new developers in recent months. Some industry observers have even attributed the blockchain’s lagging token price to Miyaguchi’s leadership. “This new opportunity will enable me to continue supporting the Ethereum Foundation’s institutional relationships and to broaden our vision and cultural reach,” Miyaguchi stated in a blog post on February 25. The Ethereum Foundation, established in 2014, has been pivotal in facilitating the development of the Ethereum blockchain. Miyaguchi joined the Foundation in 2018 and has served as its executive director since then. Ethereum co-founder Vitalik Buterin praised her contributions on social media, noting that “every success of the EF—from the smooth execution of Ethereum hard forks to client interoperability workshops and Devcon—reflects Aya’s leadership.” — Margaux Nijkerk Read more.
AVALANCHE VISA CARD LAUNCHES: The Avalanche Foundation, which oversees the development of the Avalanche blockchain, has announced the launch of its highly awaited Avalanche Card, allowing users to make purchases using cryptocurrency. Developed in collaboration with Rain, a blockchain-based card issuing platform, the card enables users to spend their Avalanche tokens (AVAX), wrapped AVAX, as well as stablecoins USDT and USDC at any merchant that accepts Visa. This launch signifies a growing convergence between traditional financial systems and cryptocurrency. The Avalanche Foundation previously revealed plans to introduce the card, with a focus on attracting users from Latin America and the Caribbean. According to the card’s website, it will be linked to users’ “new self-custody wallet and a unique address for each asset.” “In our commitment to promoting mainstream adoption of decentralized finance (DeFi), Avalanche aims to provide accessible pathways to blockchain for all types of users,” the team remarked. — Margaux Nijkerk Read more.
HACKERS USE GITHUB TO STEAL BITCOIN: A recent report from Kaspersky highlights a concerning trend where hackers utilize GitHub to compromise users’ bitcoin (BTC) and other cryptocurrency assets. GitHub is a widely used platform among developers, particularly those focused on cryptocurrency projects, where even a simple application can yield significant revenue. The report brings attention to an ongoing “GitVenom” campaign, which has been active for over two years and is gaining traction. This campaign involves embedding malicious code within counterfeit projects on the well-known code repository platform. The attack vector begins with seemingly legitimate GitHub projects—such as tools for managing bitcoin wallets via Telegram bots or applications for gaming—which come with polished README files, often generated by AI, to foster trust. However, the actual code contains a Trojan horse: for Python projects, attackers conceal harmful scripts following an unusual string of 2,000 tabs, which ultimately decrypts and executes a malicious payload. For JavaScript projects, a rogue function is inserted into the main file, igniting the launch of the attack. Once triggered, the malware retrieves additional tools from a different hacker-controlled GitHub repository. After the system is compromised, various programs activate to carry out the exploit. To safeguard against these threats, users are advised to meticulously scrutinize any code before execution, validate the authenticity of projects, and maintain a healthy skepticism toward overly polished README files or inconsistent commit histories. Researchers do not anticipate these attacks to cease anytime soon: “We expect these attempts to persist in the future, potentially with minor adjustments in tactics, techniques, and procedures (TTPs),” Kaspersky cautioned. — Shaurya Malwa Read more.
In Other News
Miners Pivoting to AI, but Bitcoin Still Makes Sense
- Public bitcoin miners are increasingly exploring the establishment of AI business lines, yet there remains ample opportunity for their original mandate, according to this investment bank analyst. Reported by Colin Harper of Blockspace.
Starknet Layer 2 Introduces Gaming App-Chain
- Nums, a sequential game built on Starknet’s technology, marks the first layer-3 to settle on the network.
Regulatory and Policy Updates
- SEC and TRON Request Court to Freeze Fraud Case Amid ‘Potential Resolution.’
Calendar
- Feb 23-March 2: ETHDenver
- March 18-19: Digital Asset Summit, London
- April 30-May 1: Token 2049, Dubai
- May 14-16: Consensus, Toronto.
- May 27-29: Bitcoin 2025, Las Vegas.
