Cryptocurrency tips and strategies for investors, traders, and beginners. Learn how to buy, sell, and trade Bitcoin, Ethereum, altcoins, and NFTs securely. Get insights on crypto wallets, DeFi, blockchain technology, market trends, and price predictions. Whether you're a long-term holder or day trader, this blog helps you make smarter crypto moves. Discover new coins, profitable platforms, and proven tools to grow your digital portfolio. Crypto isn’t the future—it’s now.
Ethereum co-founder Vitalik Buterin proposed a new “multidimensional” approach to gas fees this week. By charging different gas prices depending on the resource used, he thinks users will benefit from optimal gas costs.
High Ethereum gas fees have been a persistent problem since DeFi took off in the summer of 2020. And it’s not uncommon to hear of people paying hundreds of dollars to use the network.
As expected, the uproar over this situation forced devs to act, and they did with the rollout of EIP 1559, which went live on August 5, 2021.
EIP 1559 brought in several changes, but primarily it shelved the auction bidding system in favor of a moving base fee system. In other words, gas fees would not be driven by users bidding higher to have their transactions processed first.
Analysis of average gas fees in dollars shows June 2021 to August 2021 as a period of (relatively) low gas costs, hovering around $6/$7. But post-EIP 1559, gas fees have shot up, peaking at $62.84 on November 9, 2021. As of today, the average fee comes in at $37.33.
With that in mind, some would argue EIP 1559 was a failure because the most significant factor in determining gas fees is network capacity (or lack of in this case), not the method used to ascribe an individual user’s transaction cost.
As such, will a “multidimensional” approach to the problem be any different?
Was Ethereum Improvement Proposal (EIP) 1559 a failure?
Based on the raw numbers above, EIP 1559 did not lower gas fees, making it unsuccessful in that respect.
However, proponents of EIP 1559 say it was never meant to lower gas fees, only to make fees more transparent and predictable.
The thinking here is that users would know upfront how much it would cost to put through a transaction. That way, they could decide whether or not to go ahead.
At present, ConsenSys’ vision of a “world computer” in the Ethereum network does not tally with the general user experience.
Some would argue that Ethereum is a victim of its own success and will eventually nail the gas fee problem as a work in progress.
What is Buterin’s new “multidimensional” approach?
In another attempt to solve the problem, Buterin noted that different Ethereum Virtual Machine (EVM) resources have different gas usage demands.
Expanding further, he differentiates “burst capacity,” how much capacity we could handle for one or a few blocks, and “sustained capacity,” how much capacity we would be comfortable having for a long time.
“The scheme we have today, where all resources are combined together into a single multidimensional resource (“gas”), does a poor job at handling these differences.”
The revised “multidimensional EIP 1559” would use a mathematical formula to adjust the ratio of burst and sustained capacities. From that, Buterin puts forward two options:
The first is to calculate the gas fees for resources by dividing the base fee for each unit of resource by the total base fee. This would derive a base fee that is fixed per block.
Alternatively, the base fee is set for using resources but incorporates burst limits on each resource. There would are also “priority fees” paid to the block producer.
Here at Changelly, we treat Dogecoin (DOGE) cryptocurrency with respect, as DOGE is the perfect example of what can be achieved if a cryptocurrency has strong community support. Born as an Internet meme, Dogecoin demonstrates how a simple joke may increase in value and reach a $32 billion market capitalization. We’ve collected facts about the Dogecoin success story and provided DOGE price prediction.
Dogecoin Origin & Purpose
Dogecoin was designed using the codebase of Litecoin and its development was aimed at providing an alternative to Bitcoin. It should’ve been a more approachable and friendly cryptocurrency.
Its most distinct feature, however, is its mascot. The developers of Dogecoin chose a “fun” approach towards its development.
The coin got a Shiba-Inu logo and the name “Dogecoin”, reflecting the internet meme “Doge”.
Dogecoin was just a little changed when developed as a fork of Litecoin. New blocks in the DOGE blockchain are created faster than in Litecoin – 1 minute against 2.5 minutes in LTC. Dogecoin’s mining difficulty is adjusted every block found and the reward is fixed. The most distinct change happened in the brand and it became a driving force behind its popularity.
The fun image of the crypto helped this meme token to get attention in various social media. The coin turned famous even outside the community of blockchain technology fans.
Charity & Tipping
For around three years the meme coin was famous but not actively traded and there were no rapid price movements either. Several charity programs and a friendly DOGE community helped the coin to get the trust of the community.
The coin grew its user base with the help of the Reddit community and other social platforms. It moved the Dogecoin market cap in rates not even the most bullish analysts could’ve predicted.
DOGE price dropped significantly, and its market cap has also left its high point. Still, it is one of the top-15 coins on the market and overall ROI is around 11,000%. It is also pretty popular digital coin since Elon Musk is encouraging users to buy it and send it to the moon.
Dogecoin is the tenth by sales and exchange cryptocurrency on Changelly, but despite this, users regularly exchange it thanks to the long existence and development of the coin.
Dogecoin (DOGE) Live Price
Dogecoin (DOGE) Price Analysis
2018 was a tough and bearish year for DOGE. Similarly to the other market, Dogecoin price lowered by the loss of the public’s attention.
Dogecoin (DOGE) Price Graph for All Time
Dogecoin price was in a downtrend for all of 2018, despite the several times the Dogecoin price was going up for a short period of time. Today, the long-term Dogecoin forecast is not very bright.
During the price falls of March, July, and September, Dogecoin was falling along with the market. The DOGE price drop isn’t that bad as it is for Bitcoin and the price spikes after the downtrend show that DOGE was recovering faster than BTC.
Dogecoin is obviously very dependent on the overall interest in the blockchain industry and behaves like most of the other coins, discussed the Cryptocurrency Price Predictions articles published on our website. For example, Zcash and BitcoinCash – both coins mirrored the Bitcoin price graph.
Due to the fact that DOGE depends on the cryptocurrency market movements, predicting its price becomes difficult, especially for the long term.
Dogecoin Trend Analysis
Dogecoin popularity was outstandingly stable over the course of the previous year. You can see on the following graph that the coin even managed to get a search term “Dogecoin” spike in popularity.
Dogecoin query trend via Google
The coin was very interesting for Google users in January 2018. A couple of less significant peaks happened in July and December. At the start of 2019, the popularity was around the same level as it was in the same period of 2018, which is a major accomplishment in terms of the industry crisis, happening today.
DOGE is widely owned and the community members seek to use their Dogecoins in everyday life. Recently added Bitrefill’s AirBnB payment option is a good example.
The price of Dogecoin is not very responsive to media attention. For example, the news about Airbnb caused a price rise against USD by ~3% over 3 days after the announcement.
According to Google Trends, DOGE has its committed audience and most popular in Venezuela.
Similarly to Dash, DOGE turned out to be one of the go-to cryptos in countries where the financial system is struggling. Other countries with a large amount of the “Dogecoin” searches include Bangladesh, Pakistan, the Philippines, and Nigeria.
It is a good sign that the coin is used as an alternative to the official fiat currencies of these countries for monetary exchange between regular people.
Recently, Dogecoin’s price went up by 100%. Such a success was waiting for the coin after the publication of the viral video in TikTok, where the user of The Wolf Of Bitcoins showed his mining farm.
A warning has appeared in Dogecoin’s official Twitter account, aimed at potential cryptocurrency buyers. In it, developers urge not to succumb to FOMO and make investment decisions on their own.
Be mindful of the intentions people have when they direct you to buy things. None of them are in the spot to be financially advising.
Make choices right for you, do not ride other peoples FOMO or manipulation.
Well, there is not actually any technical analysis expertise of Dogecoin cryptocurrency. However, here is the aggregate rating for DOGE from several traders & analysts on TradingView.
Despite all the pumps associated with the DOGE cryptocurrency, the coin rate is very volatile. We can expect both the boost and the fall in the rate.
Wallet Investor DOGE Price Prediction for 2021 and 2025
There will be a positive trend in the future of the asset. DOGE might be a good idea for investing. In 2021, the coin will be stable and cost around $0.24. In 2025, the average Dogecoin price can reach $1.22.
DigitalCoinPrice Forecast for 2021 – 2025
According to DigitalCoinPrice source, DOGE is a profitable investment based on the forecast. By the end of 2021, the coin price will reach $0.34. In 2025, the DOGE prices can be around $0.675.
Elon Musk Opinion on Dogecoin Future
Dogecoin has support from Elon Musk. All of you have already seen the hype that boosted Dogecoin price. When Elon Musk tweets about Dogecoin, the price always goes up. Well, soon to the Moon! Much Space!
According to the technical analysis of Dogecoin (DOGE) price graphs, the price of one Dogecoin in 2030 may reach $1. The prediction depends on the whole market situation and mostly on Elon Musk’s opinion.
Dogecoin F.A.Q.
Does Elon Musk own Dogecoin?
Of course he does. He even bought some for his child.
Bought some Dogecoin for lil X, so he can be a toddler hodler
It is easy to buy or swap DOGE coins on many exchanges. When purchasing crypto it is important to seize the moment of the best rates as the cryptocurrency market continuously fluctuates. You can always check the Dogecoin cross-rate to other cryptocurrencies on our website.
How Much Are Dogecoins Worth?
Dogecoin’s current market value is about $30,445,829,131 — as of November 2021.
Will Dogecoin Ever Reach $10?
Reddit users suppose Doge to become the currency of the internet. So it can definitely go higher than $10.
Is Dogecoin Dead?
According to Reddit, this meme-inspired cryptocurrency stays solid on its paws. Some stores accept DOGE coins nowadays. So it’s the best evidence that Dogecoin is alive.
Is Dogecoin a good investment?
Well, Dogecoin started as a joke. However, nowadays, the meme coin is still one of the most popular among the crypto community. Despite the fact that the price is not at its highest point, the long-term earning potential of this coin looks moderately optimistic.
Who Created Dogecoin?
Dogecoin was created by Billy Markus and Jackson Palmer.
Is Dogecoin Mining Profitable?
Mining Dogecoin is not profitable using the Dogecoin mining hardware hashrate.
What Are Dogecoins Used For?
One of the most popular cases to use Dogecoin is tipping users on the internet who create or share content. Dogecoin (DOGE) can be associated with like or upvote with real value that can be used all across the internet.
How Much Are Dogecoins Worth?
Here is a Doge Live Price.
How and Where Buy DOGE at the Best Rate
Changelly allows you to swap and buy DOGE cryptocurrency with fiat using your credit/debit card, bank transfer, or even Apple Pay. Choose the best rate and get some DOGE to your wallet.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
OpenSea has disclosed that it has closed a $300 million Series C funding round that valued the company at $13 billion. The funding round was led by hedge fund Coatue Management and Paradigm.
Details Of The Funding Round
After reports began emerging about its funding effort, OpenSea announced that it had successfully closed a $300 million funding round. OpenSea’s valuation showed the unparalleled growth experienced by the platform in recent months.
Sources stated that OpenSea, which had raised at a valuation of $1.5 billion last year, was planning a raise at a valuation of almost $15 billion before investors settled at a lower figure. The figure of $13 billion was first reported by Eric Newcomer while also revealing that Coatue Management and Paradigm were leading the round. Other significant participants in the round include Kathryn Haun’s new Web3 and crypto-focused investment fund. Haun was previously a partner at a16z.
An Unprecedented Growth Story
OpenSea has seen its transaction volumes touch $2.4 billion in just the past 30 days and brought in millions of dollars in transaction fees. OpenSea’s valuation has seen unprecedented growth, given that just last year, it had been valued at $1.5 billion by Andreessen Horowitz’s crypto arm. The growth, while reflecting OpenSea’s own growth, also reflects the overall growth in the space and that of other NFT firms such as Dapper Labs, which raised $7.6 billion last year.
A Tweet by Joe Pompliano highlighted the scale of OpenSea’s growth. Pompliano highlighted the growth in the platform’s transaction volumes, which went from $474k in 2018 to $8 million in 2019. Transaction volumes reached $24 million in 2020 and then to a jaw-dropping $15 billion in 2021.
OpenSea currently has very few competitors in the market, although that landscape could change, with Coinbase eying the market and several other NFT marketplaces set to launch, with the NFT marketplace only set to grow further in 2022.
OpenSea Looking Ahead
While confirming the funding, Devin Finzer, Co-founder and CEO of OpenSea, stated in a blog post how the funding would be utilized. He stated that the funding would be used towards customer support and safety and hiring, and product development. He also stated that OpenSea would be investing in the NFT and Web3 community.
“We are committed to expanding the entire NFT ecosystem. This quarter, we are launching a grant program to give us the opportunity to directly support the developers, builders, and creators shaping the future of the NFT space. Our ambition is to foster the scale and growth of the broader NFT ecosystem, including raising the profile of emerging creators and investing in the people who shape the NFT space for the better today.”
The new capital will enable OpenSea to consolidate its position in the NFT market while also staying ahead of new players emerging in the market.
OpenSea’s Brush With Controversy
OpenSea had gone through a bit of controversy back in September when one of their executives profited from insider trading. However, OpenSea was quick to address the issue and swiftly implemented new policies to avoid a repeat of the same.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Solana is not exactly a new cryptocurrency, but it has only gained traction and widespread popularity in the last few months. Its astronomical rise upwards has attracted the attention of many investors, helping them to discover the project’s high usability and incredible functionality.
With so many people jumping in on the Solana hype, many are left wondering whether the coin is a good long-term investment or if they should dump whatever coins they have bought before it plunges deeper than it has already.
Unfortunately, we cannot give you financial advice and won’t be able to tell you what to do with your coins – that is something you should decide for yourself. However, Solana is a really interesting project, and we wanted to take a look at what potential it may have in the near future.
Without further ado, let’s take a look at our Solana price prediction!
Solana’s Price Today
What Is Solana?
Solana is a highly effective, fast, censorship-resistant, and incredibly secure blockchain. It utilizes blockchain technology’s permissionless nature to provide efficient DeFi (decentralized finance) solutions.
Although the initial work on the project began in 2017, and it was launched back in March 2020, it was only noticed and found acclaim in 2021. The coin quickly climbed up the market cap rankings, going from position 42 in February 2021 to rank 7 in September of the same year. How did Solana’s price rise so fast?
Solana has excellent fundamentals and is an incredibly efficient coin, but the catalyst that catapulted SOL coin price to the moon is an NFT project called the “Degenerate Ape Academy”. Launched in mid-August on the Solana blockchain, this project sold over 10,000 “smoothest brain” apes in a matter of minutes.
In contrast to the highly popular NFT launches on Ethereum, the minting of the Apes went very smoothly: no congested network, no inflated transaction fees – everything was (comparatively) in order. As a result, many people who have previously never heard of this innovative project noticed Solana and the benefits it provides. This led to a month-long Solana’s price spike.
Fundamentals
Solana uses a brand-new consensus mechanism called proof-of-history, which allows the network to be extremely fast and effective.
Solana does everything Ethereum 2.0 promises to be able to do, but 20 times faster. It offers a throughput of 50 thousand transactions per second at layer one, and has the scalability to go up to a million. In addition to this, Solana has basically no transaction fees.
The Solana network has over 500 nodes, making it much more decentralized than blockchains like Ripple or Stellar that have fewer validator nodes. The only requirement to make a node on Solana is having 3-4 thousand USD worth of hardware, which may seem like a lot, but is a low entry barrier when you compare it to other cryptocurrencies. This, in addition to its block time of only 0.4 seconds, gives Solana the potential to become one of the best decentralized blockchain platforms in the industry.
Solana Price Analysis
Solana (SOL) price only started rising back in February, when the whole crypto market was mooning. Unlike other crypto giants, however, Solana price didn’t feel the crash in late spring of 2021 as strongly as Bitcoin or Ethereum, although its price did decline.
After a rather slow and uneventful June and July, Solana price shot up in mid-August and continued to rise until mid-September. The cryptocurrency seems to be going through a correction at the moment as SOL price has been in a slow decline over the past few days. Solana has an All-Time High of $260.06 and its current price (at the time of writing this article) is $181.30.
Now that we’ve talked about the project and the coin’s price history, let’s take a look at our actual detailed Solana price prediction.
Solana Price Prediction by the Beginning of 2022
As we have mentioned previously, Solana seems to be going through a correction phase right now. It is difficult to say how hard this correction will hit the coin, whether its current price will be its lowest point in 2021 and if it will be able to recover afterwards and continue its climb upwards. However, we can still make some tentative price predictions.
If the attention SOL has grabbed turns out to not be enough, and its holders get affected by FOMO, SOL owners might sell off their remaining coins to try and get some profit, plummeting the price of this cryptocurrency into the ground. However, unlike the usual pump-and-dump altcoins, Solana has not only the hype but also genuine interest in its functionality to back it up.
According to the forecast of Wallet Investor, Solana will show growth to its values in 2022 and the average price for SOL token will be ~$217 in January and ~$240 in February.
Experts from coinpriceforecast.com also believe that the Solana price will creep up and reach $269 in the first half of 2022.
Solana Price Prediction for 2022
2022 is when things can get a little more interesting. Forecasted Solana price may become less volatile by the beginning of next year, and if it manages to stay above the $200 mark, we may see considerable growth of SOL price in 2022. According to our Solana (SOL) price prediction, the cryptocurrency will stay in the $300 range in 2022, and may possibly go up to as far as $400.
Solana Price Prediction 2023
If the upward trend continues and Solana doesn’t get dumped, we may see it reach $450 in 2023. However, when it comes to crypto, it’s better to be cautious. Our Solana price forecast estimates that SOL price will hover around the $400 mark in 2023.
Solana Price Prediction 2024
If things go well, the price of Solana can hit $500 in 2024. That will strengthen its market position and firmly make it one of the top assets in the crypto world.
Solana Price Prediction 2025
According to our Solana (SOL) price prediction, the coin may breach the $600 mark in 2026.
Solana Coin Price Prediction 2030
It is hard to make long-term crypto price predictions as the cryptocurrency market is highly volatile. However, we can make some wild guesses and estimates.
There is a possibility that the entire crypto industry will crash by 2030 due to strict regulations or a more innovative competitor coming to overtake blockchain and cryptocurrencies. However, that possibility is as much of a wild guess as that Bitcoin will oust USD and become the official currency of the United States.
Our Solana price forecast for 2030 is this: if the coin proves its worth and continues to be one of the top cryptocurrencies on the market, it can go up to as high as $3000 in 2030.
Market Predictions
Experts seem to have wildly different opinions on the future of Solana and SOL price.
Coin Price Forecast has bullish predictions, expecting Solana to have a return of +236% by the end of 2025. They predict that Solana crypto prices will storm the $360 mark at the beginning of 2023. Additionally, they think that $1,000 is a very real possibility for Solana coin in the next 10 years.
On the other hand, David Cox, an expert at CryptoNewsZ, has a bearish outlook. According to his Solana technical analysis, the coin will hardly be able to stay at the $100 mark, and is likely to drop below it in 2022 and beyond.
Same goes for Redditors, who don’t believe that the price of Solana has the capabilities to stay above $100. However, they (and other experts) do point out that everything will depend on how the public reacts to Solana and whether the current interest is just hype- and profit-infused, or is genuine belief in the capabilities of the Solana network.
Our Solana Price Prediction
Here’s an overview of our Solana forecast.
2022
$250
2023
$300
2024
$400
2025
$600
2030
Anywhere from $0.01 to $3,000
Is Solana a Good Investment?
Is a high risk, high reward type of asset a good fit for your investment portfolio? If so, then Solana may be the cryptocurrency you were looking for. Unlike many other fast-growing coins or tokens, Solana is recognised and praised by the crypto community for its technical superiority and efficiency, which gives the coin a good chance to stay afloat and keep growing in the future.
Solana is as fast as some centralized systems, making it highly future-proof. It has the potential to become the catalyst that will convince people to switch from centralized systems to decentralized ones. Essentially, Solana combines the usability of mainstream centralized platforms with the incredible security of decentralized ones.
If our Solana forecast is to come true, as well as the Solana price prediction (2022 and beyond) made by the experts and SOL investors at Coin Price Forecast, then the future price of this cryptocurrency may rise astronomically, making it a very profitable investment. Even if Solana doesn’t shoot for the moon, there’s still a chance it can become a good investment as long as it doesn’t crash. However, if it does crash, you will still be able to make some profit by short selling SOL currency.
Keep in mind that every cryptocurrency price prediction, including our Solana forecast, are not fully reliable due to the volatile nature of the cryptocurrency market and should not be seen as investment advice. Please do your own research before investing into any digital asset.
Why is Solana’s price going up?
The upside rally of SOL current price is largely the result of gaming on the cryptocurrency market and the successful development of NFT projects based on Solana.
How to Buy Solana?
You can buy and sell Solana coins on many popular crypto exchanges like Binance, Kraken, and so on. If you want to purchase Solana (SOL) instantly with your credit card (Visa, Mastercard), bank transfer, or Apple Pay – Changelly is always at your service!
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
NFTs. At home. On your TV. Yes, that's what Samsung is bringing to the consumer tech space this year. Unveiled ahead of this year's CES (Consumer Electronics Show 2022), Samsung's new models for its Micro LED, Neo QLED, and The Frame range will feature access to an NFT Platform app, as well as an analytics dashboard for NFT marketplace aggregation.
“With demand for NFTs on the rise, the need for a solution to today’s fragmented viewing and purchasing landscape has never been greater,” Samsung claimed.
It's no surprise that Samsung is unveiling a feature like this in their hardware. Samsung's venture capital division, Samsung Next, has made a slew of investments in NFT and metaverse projects, participating in The Sandbox' $93 million Series B investment round, as well as Ready Player Me's $13 million Series A investment round.
On the hardware side of things, Samsung's foundry began making crypto mining hardware way back in 2018, providing ASIC mining chips for Chinese crypto mining firm Bitmain, alongside other major silicon suppliers like TSMC (Taiwan Semiconductor Manufacturing Company). In the same year, Samsung began designing and manufacturing its own ASIC mining rigs. Even before this, in 2017, Samsung showcased its crypto inclinations by making a Bitcoin mining rig composed of 40 "upcycled" Galaxy S5s. Fast forward to 2022, NFTs have become the name of the game, and Samsung's new offering is effectively an industry first.
"In 2022, Samsung is introducing the world's first TV screen-based NFT explorer and marketplace aggregator, a groundbreaking platform that lets you browse, purchase, and display your favorite art — all in one place," Samsung announced in a press release.
According to Samsung, the cutting-edge TVs were integrated with NFT features that would assist with "discovering, purchasing and trading digital artwork." NFTs, or non-fungible tokens, have seen accelerated adoption and popularity in the previous year, and 2022 is starting to form a similar trend.
The new smart TVs will be equipped with an "intuitive, integrated platform" that would enable users to explore, view, trade, and manage NFTs as well as their own NFT collections. An NFT's trade history and blockchain metadata will also be available on the analytics dashboard.
Samsung has not provided any detail as to which NFT platforms will be integrated with their offering. Notably, Samsung confirms that NFTs displayed on their new smart TVs will keep the preset dimensions and pixel specifications for each piece, so users may "have peace of mind that [their] work looks impeccable, with true-to-the-original image quality."Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Polygon, a Layer 2 scaling network based on Ethereum, has kept its silence for almost a month about a critical vulnerability that almost destabilized its ecosystem, with roughly $24 billion worth of MATIC, its native token, put at risk because of an external threat actor.
While Polygon has done a great job at keeping the situation under wraps for almost a month, when things have started to clear up and its protocol's security engineers have signaled that the coast was clear, the protocol went on to release what can be deemed as a post-crisis report.
Polygon quietly pushed an update to its network, and with it, a crucial fix was shipped to all its nodes and validators.
All you need to know about the recent Polygon network update.✅A security partner discovered a vulnerability✅Fix was immediately introduced✅Validators upgraded the network✅No material harm to the protocol/end-users✅White hats were paid a bounty https://t.co/oyDkvohg33
— Polygon | $MATIC 💜 (@0xPolygon) December 29, 2021
In a blog post detailing the incident, the Polygon team reported that the vulnerability was first disclosed by two whitehat hackers over two days, a window of disclosure which went from December 3 to December 4, 2021. During this window, the critical vulnerability identified within Polygon's proof-of-stake Genesis contract was detailed through the two whitehat hacker's cooperation with Immunefi, a blockchain security and bug bounty hosting firm.
"The Polygon core team engaged with the group and Immunefi’s expert team and immediately introduced a fix. The validator and full node communities were notified, and they rallied behind the core devs to upgrade 80% of the network within 24 hours without stoppage." Polygon explained.
According to the post-situational analysis, some 9.27 billion units of $MATIC, Polygon's native token, were put at risk. With MATIC's total supply of 10 billion, this put roughly 92% of the network in grave danger. Fortunately, Polygon's community of nodes and core devs worked together what could have been another dark forest incident.
“What’s important is that this was a test of our network’s resilience as well as our ability to act decisively under pressure. Considering how much was at stake, I believe our team has made the best decisions possible given the circumstances.” shared Polygon co-founder Jaynti Kanani.
Despite these efforts, the threat actor was able to siphon off 801,601 MATIC from the network before it was patched. The stolen tokens amount to roughly $2 million at the time. The Polygon foundation has since resolved to "bear the cost of the theft."
Polygon stated that the fix was introduced thereafter, with the bug resolved at block 22,156,660 through an "Emergency Bor Upgrade" to the Polygon mainnet. This occured at 7:27 AM UTC on December 5, 2021.
“The Polygon team’s response to this disclosure was swift and effective,” shared Immunefi CTO Duncan Townsend. “That this incident had a happy ending is a testament to their expertise. Tight coordination with the Polygon validators helped avert what could’ve been a major disaster,” he added.
According to Polygon, the reason why the issue was not disclosed publicly and was resolved behind closed doors is because their team were following a policy introduced by the Go Ethereum team back in November 2020. This policy, called "silent patches," provides leeway to protocol developers to report on key infrastructural patches over 4-8 weeks after an incident occurs and a fix is introduced. This helps the protocol avoid the risk of being "sniped" or exploited during the time that the patch is being done.
Whitehat hacker "Leon Spacewalker" initiated the vulnerability disclosure and coordination with Immunefi, while another hacker who goes by "Whitehat2" followed up and confirmed the initial observations. The two whitehats will be rewarded by both Immunefi and Polygon, with Leon Spacewalker receiving $2.2 million in stablecoins as reward, and Whitehat2 receiving 500,000 MATIC, or about $1.2 million.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
