Solana Community Approves Alpenglow Upgrade

Welcome to The Protocol, CoinDesk’s weekly wrap of crucial tales in cryptocurrency tech growth. I’m Margaux Nijkerk, a reporter at CoinDesk.

On this subject:

Solana Set for Main Overhaul After 98% Votes to Approve Historic ‘Alpenglow’ Improve
Ethereum Basis to Unload One other 10K ETH Following SharpLink Deal
‘OP_CAT Isn’t My Invention. It’s Satoshi’s,’ Says Bruce Liu as OPCAT_Labs Pushes to Reboot Bitcoin’s Code
Ethereum to Shut Its Largest Testnet, Holesky, After Fusaka Improve

Community Information

ALPENGLOW APPROVED BY SOLANA COMMUNITY: The Solana group voted overwhelmingly in favor of the long-awaited Alpenglow improve, bringing the community one step nearer to probably the most important technical transformation in its historical past. In keeping with Solana Standing on X, 98.27% of SOL stakers that voted accredited the proposal, with just one.05% voting towards and 0.36% abstaining. In complete, 52% of the community’s stakers participated within the vote. The improve introduces a brand new consensus protocol designed to dramatically enhance transaction finality and community effectivity. On the coronary heart of Alpenglow are two new elements, Votor and Rotor, which can exchange Solana’s present programs, Proof-of-Historical past and TowerBFT. Presently, Proof-of-Historical past timestamps transactions to protect their order with out slowing the community, whereas TowerBFT handles the voting course of amongst validators. Alpenglow will overhaul each programs. Votor will slash transaction finality occasions from over 12 seconds to round 150 milliseconds, delivering near-instant affirmation for customers. Rotor, scheduled for a later rollout, will decrease information transfers between validators, an important enchancment for high-demand purposes comparable to decentralized finance (DeFi) and blockchain-based gaming.With approval secured, Solana is now making ready to implement the improve, a milestone anticipated to unlock higher velocity, resilience, and scalability throughout its ecosystem. — Margaux Nijkerk Learn extra.

EF TO SELL 10K ETH OVER NEXT FEW WEEKS: The Ethereum Basis (EF) shared in a publish on X on Tuesday that it plans to promote 10,000 ETH by centralized exchanges over the subsequent a number of weeks to assist work towards analysis & growth, ecosystem grants and associated donations. In keeping with CoinMarketCap, the ETH will quantity to roughly $43 million at Tuesday’s costs. “Conversions will happen over a number of smaller orders, slightly than as a single massive transaction,” the EF wrote within the publish on X.The information follows the EF’s rollout of a brand new treasury coverage in June that caps annual operational spending (opex) at 15%, establishes a multiyear reserve buffer and units a gradual tempo towards even leaner spending long-term. The inspiration bought an extra 10,000 ETH to SharpLink Gaming in July, making the web on line casino advertising and marketing agency the primary publicly traded firm to purchase ETH from a key agency within the community’s ecosystem. — Margaux Nijkerk Learn extra.

A CHAT WITH BRUCE LIU ON OP_CAT: With out OP_CAT, Bruce Liu says Bitcoin is as “helpful as a jumbo jet with out wings” able to far more than it’s allowed to do, however caught on the bottom whereas Ethereum and Solana soar. Liu, the founding father of OPCAT_Labs, says a single opcode, OP_CAT, may remodel bitcoin from static digital gold into programmable cash that rivals different layer-1 chains. OP_CAT is a long-disabled opcode in Bitcoin’s code that, if re-enabled, would permit builders to concatenate information in scripts and unlock new prospects, from vaults and covenants to decentralized exchanges and zero-knowledge proofs. The Bitcoin blockchain, if OP_CAT was re-enabled, could be as programmable as Ethereum or Solana, mentioned Liu. “OP_CAT isn’t new code. It was by no means deleted, simply commented out and disabled. We’re not including my opcode or anyone else’s. It’s Satoshi’s,” Liu informed CoinDesk throughout an interview on the sidelines of BTC Asia in Hong Kong. — Sam Reynolds Learn extra.

HOLESKY SUNSET IS COMING AFTER FUSAKA UPGRADE: A recent slate of Ethereum testnets is changing Holesky, the once-massive staging floor now set for shutdown after two years of service.The wind-down will happen two weeks after the Fusaka improve is finalized later this yr, at which level shopper and infrastructure groups will stop offering assist. Fusaka is about to make Ethereum rollups cheaper and sooner by spreading out the “information storage work” extra evenly throughout validators. Holesky went dwell in 2023 to stress-test Ethereum’s proof-of-stake equipment at scale. It rapidly grew to become the most important public testnet, offering 1000’s of validators with a platform to trial upgrades earlier than they have been deployed on the mainnet. Main milestones, such because the Dencun and Pectra upgrades — which lowered transaction prices and upgraded validator effectivity, amongst different options — have been run by Holesky first. Nevertheless, cracks started to appear because the community aged. Holesky encountered “inactivity leaks” after Pectra’s activation in early 2025, a time period referring to validators going offline in massive numbers, which created a major backlog for these making an attempt to exit. The consequence was months-long queues that made it impractical to check the total validator lifecycle. For builders needing quick suggestions loops, Holesky had turn out to be extra of a roadblock than a device. — Shaurya Malwa Learn extra.

In Different Information

Digital asset funding agency Galaxy Digital (GLXY) is bringing its inventory onto blockchain rails as fairness tokenization beneficial properties steam.The Nasdaq-listed firm is working with blockchain agency Superstate to make its Class A standard inventory accessible as tokens on the Solana community by Superstate’s Opening Bell platform. The association preserves the total rights of SEC-registered fairness whereas permitting buyers to carry and switch shares on-chain, the corporations mentioned. Tokenization of conventional belongings has gained traction throughout the monetary sector as corporations experiment with shifting equities, bonds and money-market funds onto blockchain infrastructure. A slew of tokenized fairness merchandise hit the market previously few months predominantly for EU buyers, together with by Robinhood, Gemini with Dinari and xStocks by Kraken and Backed Finance. Nevertheless, some choices drew issues comparable to restricted shareholder rights and fragmented laws. In contrast to artificial or wrapped tokenized shares that function with out issuer involvement, Galaxy’s shares are issued instantly on-chain and tracked by Superstate as a switch agent, recording adjustments to the shareholder register immediately as tokens transfer between verified wallets. This method seeks to mix compliance with blockchain options comparable to quick settlement, transparency and around-the clock-availability, the corporations mentioned. — Kristzian Sandor Learn extra.
Ondo Finance launched its tokenized fairness platform dubbed Ondo International Markets, providing non-U.S. buyers entry to greater than 100 U.S. shares and exchange-traded funds (ETFs) on-chain. The tokenized equities, first introduced in February, have gone dwell on Ethereum and are backed by securities held by U.S.-registered broker-dealers, the agency mentioned.The providing contains crypto token variations of Apple (AAPL), Nvidia (NVDA) and the QQQ ETF amongst others. Buyers in Asia-Pacific, Europe, Africa and Latin America can mint and redeem shares across the clock throughout buying and selling days, with entry to underlying trade liquidity. The service isn’t accessible for U.S. customers. The tokens are designed to maneuver freely between wallets, exchanges and decentralized finance (DeFi) protocols. The agency has additionally partnered with BitGo, Ledger, Chainlink and different infrastructure suppliers to assist the rollout.— Kristzian Sandor Learn extra.

Regulatory and Coverage

European Central Financial institution (ECB) President Christine Lagarde urged European Union (EU) lawmakers to impose stringent necessities and safeguards on overseas stablecoins.
Lagarde argued they need to adjust to the bloc’s regulatory requirements earlier than working on EU soil, she mentioned in a speech at a European Systemic Danger Board (ESRB) convention in Frankfurt. The ECB president cautioned that in a stablecoin run, buyers could be extra seemingly redeem in jurisdictions with stronger protections, such because the EU, the place Markets in Crypto-Belongings (MiCA) regulation prohibits redemption charges, doubtlessly depleting native reserves. “The danger of liquidity mismanagement throughout jurisdictions is one we now have seen earlier than. Banking teams, for instance, are already required to make sure that reserves can be found within the a part of the group the place and when they’re wanted,” Lagarde mentioned. — Jamie Crawley Learn Extra.
The U.S. authorities has begun utilizing blockchains to disseminate key financial information, beginning with the U.S. Division of Commerce’s launch of gross-domestic product (GDP) numbers, which was described as a “proof of idea” for doing extra sooner or later. “We’re making America’s financial reality immutable and globally accessible like by no means earlier than, cementing our position because the blockchain capital of the world,” Secretary of Commerce Howard Lutnick mentioned in a press release that introduced the brand new method to distributing the info. In a deliberate effort to not choose blockchain favorites, the division put out final week’s information on Bitcoin, Ethereum, Solana, TRON, Stellar, Avalanche, Arbitrum One, Polygon PoS and Optimism, figuring out the transaction hashes for every in its announcement. The company mentioned it additionally despatched the info by Chainlink and Pyth and famous that exchanges Coinbase, Gemini and Kraken helped out.— Jesse Hamilton Learn extra.