Welcome to The Protocol
CoinDesk’s weekly wrap-up of the most crucial stories in the cryptocurrency technology landscape is here. I’m Margaux Nijkerk, CoinDesk’s Ethereum Reporter, and in this edition, we’ll dive into the latest developments that are shaping the future of blockchain technology.
In this issue:
- Ethereum’s Holesky Testnet Achieves Finalization – At Last
- Starknet Expands to Bitcoin and Ethereum
- Danny Ryan’s Transition from Ethereum’s Core to Wall Street
- Japanese Tech Giants Sony and LINE Collaborate
This article is featured in the latest issue of The Protocol, our weekly newsletter that explores the intricate technology behind crypto, one block at a time. Sign up here to receive it in your inbox every Wednesday.
Network News
ETHEREUM HOLESKY TESTNET ACHIEVES FINALIZATION – AT LAST:
Ethereum’s Holesky testnet has finally achieved finality nearly two weeks post the Pectra upgrade, successfully overcoming a client-software configuration bug that had stalled finalization since February 24. This significant milestone comes as Ethereum developers have postponed discussions about when to launch the Pectra upgrade on the mainnet blockchain, thereby delaying this anticipated enhancement.
— Shaurya Malwa Read more.
STARKNET EXPANDS TO BITCOIN AND ETHEREUM:
Starknet, a pioneering project designed to enhance the speed of the Ethereum network, is broadening its horizons by integrating with the world’s original blockchain: Bitcoin. In collaboration with the BTC wallet Xverse, Starknet aims to offer a comprehensive decentralized finance (DeFi) experience for Bitcoin users. Xverse has announced plans to achieve a “DeFi take-off moment” for Bitcoin by integrating with Starknet in the second quarter of 2025. The Starknet Foundation has also released a Bitcoin Roadmap outlining how it plans to remain fully operational on Ethereum while establishing itself as Bitcoin’s execution layer. This ambitious goal seeks to scale the network’s transactions from 13 transactions per second (TPS) to thousands. Developers are increasingly investigating how to leverage Bitcoin’s security and substantial reserves to empower the broader DeFi and blockchain ecosystem, addressing Bitcoin’s relative lack of programmability compared to Ethereum and other platforms.
— Jamie Crawley Read more.
DANNY RYAN’S TRANSITION FROM ETHEREUM’S CORE TO WALL STREET:
Danny Ryan, a pivotal researcher at the Ethereum Foundation, left his position in September but initiated discussions to return as the organization’s new leader shortly after. Following a mutual parting in January, Ryan announced in March his decision to join Etherealize, an organization focused on bridging Ethereum with Wall Street. In a candid interview with CoinDesk, Ryan expressed his belief that Ethereum is currently at a technological inflection point, stating, “Ethereum is much bigger than the EF. It’s not just a couple of changes at the EF that are going to make or break Ethereum at large.”
— Margaux Nijkerk Read more.
JAPANESE TECH GIANTS SONY AND LINE COLLABORATE:
In a significant move, Sony’s blockchain division is collaborating with LINE, a leading Japanese social media giant, to introduce LINE into the Web3 ecosystem. The partnership aims to adapt several popular mini-apps onto Sony’s Soneium network. LINE boasts approximately 200 million active users, and this agreement will see the integration of four LINE-based games, or “mini-apps”: Sleepagotchi, Farm Frens, Puffy Match, and Pocket Mob. This integration is designed to enhance features like in-game rewards and purchases. Soneium, which launched in January, aims to facilitate the transition of Web2 users into the Web3 space. The blockchain operates as a layer-2 solution atop Ethereum, utilizing Optimism’s OP Stack technology.
— Margaux Nijkerk
In Other News
- The U.S. House of Representatives has successfully overturned an IRS rule that would have mandated information collection from decentralized entities. This bipartisan vote, which included support from 71 Democrats, marks a significant victory for the DeFi sector. Nik De reports.
- We might need to exercise a bit more patience regarding new crypto ETFs in the U.S. A series of applications have been submitted for various entities, including XRP, Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC). However, decisions on these applications are unlikely to be made before the Senate confirms President Trump’s nominee to lead the agency, Paul Atkins. As of now, no hearings on his confirmation have been scheduled. Helene Braun reports.
- In a major systemic win for the cryptocurrency industry, the Office of the Comptroller of the Currency (OCC) announced that federally regulated banks can engage in a variety of cryptocurrency activities without needing prior approval. The OCC has also rescinded a requirement for banks to report liquidity risks associated with crypto. Sam Reynolds reports.
Calendar
- March 18-20: Digital Asset Summit, New York
- April 8-10: Paris Blockchain Week
- April 30-May 1: Token 2049, Dubai
- May 14-16: Consensus, Toronto
- May 20-22: Avalanche Summit, London
- May 27-29: Bitcoin 2025, Las Vegas
- June 30-July 3: EthCC, Cannes
- October 1-2: Token2049, Singapore
