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Vitalik Buterin Proposes Binary State Trees and RISC-V Upgrade to Overhaul Ethereum’s Execution Layer

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • EIP-7864 proposes replacing Ethereum’s hexary keccak tree with a binary structure, cutting Merkle branch size by 75%.
  • Blake3 and Poseidon hash functions could accelerate Ethereum’s proving efficiency by up to 100x over the current keccak setup.
  • Replacing the EVM with RISC-V would reduce a ZK prover translation layer, cutting the protocol’s proving bottleneck by over 80%.
  • A three-stage RISC-V rollout preserves full EVM backwards compatibility while retiring legacy infrastructure through a smart contract wrapper.

Ethereum execution layer improvements are at the center of a detailed proposal from Vitalik Buterin. The Ethereum co-founder recently shared a comprehensive breakdown of two major technical changes.

His post covers a transition to binary state trees and a long-term shift away from the EVM. Both changes target proving efficiency, client-side capabilities, and long-term protocol simplicity.

Together, they represent the most sweeping architectural rethink of Ethereum’s base layer in years.

Binary Trees: A Structural Overhaul of Ethereum’s State

The state tree change is among the most technically concrete proposals Buterin outlined. It centers on EIP-7864, which proposes replacing the current hexary keccak Merkle Patricia Tree with a binary tree structure.

The new design uses a more efficient hash function. Buterin noted on social X that this switch produces Merkle branches four times shorter than the existing setup.

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Shorter branches make client-side verification cheaper. Tools like Helios and PIR would see a 4x reduction in data bandwidth costs.

On top of that, swapping out the hash function adds further efficiency gains. Blake3 could deliver roughly three times the speed over keccak, while a Poseidon variant could achieve 100 times the improvement, though more security review is needed there.

The binary design also groups storage slots into pages of 64 to 256 slots each. This allows storage to benefit from the same efficiency as code loading.

Many decentralized applications that frequently read from the first few storage slots could save over 10,000 gas per transaction as a result.

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VM Changes: The Case for Replacing the EVM

Buterin made a pointed argument for replacing the EVM itself over the longer term. He pointed to a pattern where developers try to avoid the EVM whenever possible, treating it as an obstacle rather than a feature.

To him, this defeats the purpose of Ethereum’s generality. The fix, he argues, is building a better virtual machine rather than adding more workarounds.

His preferred candidate is RISC-V, the same architecture that most ZK provers already use. The reasoning is direct: if provers are already written in RISC-V, making the new VM be RISC-V removes an entire translation layer.

A RISC-V interpreter requires only a few hundred lines of code. Buterin described this as what a blockchain VM “should feel like.”

He proposed a three-stage rollout. The new VM would first handle precompiles, replacing roughly 80% of today’s precompiles with NewVM code. Users would then gain the ability to deploy NewVM contracts directly.

Finally, the EVM would retire and become a smart contract written in the new VM, preserving full backwards compatibility for existing users except for gas cost shifts.

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What This Means for Ethereum’s Proving Infrastructure

Buterin was direct about why these changes matter beyond aesthetics. State trees and the VM together account for more than 80% of the proving bottleneck today.

Fixing both is essentially a prerequisite for any meaningful expansion of client-side proving. Without these changes, ZK applications that need to compose with Ethereum’s state must maintain their own separate trees, which adds complexity and cost.

The binary tree change allows Ethereum’s native state to become prover-friendly. That opens the door for ZK applications to work directly with Ethereum’s storage rather than building around it.

This would reduce the overhead that many privacy protocols and wallet applications currently carry.

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Buterin acknowledged the VM changes remain more speculative and do not yet have broad consensus. However, he expressed confidence that once the state roadmap is in place, replacing the EVM will become the obvious choice.

His framing positions both changes as practical necessities rather than theoretical improvements, tied directly to the network’s ability to scale proving workloads across a wider range of use cases.

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Faraday Future (FFAI) Clears SEC Probe: AIxCrypto (AIXC) Soars 70% on Regulatory Relief

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FFAI Stock Card

Key Takeaways

  • Faraday Future (FFAI) has received confirmation that the SEC investigation has concluded without any enforcement action against the company or individuals involved.
  • The investigation focused on the company’s 2021 SPAC merger and PIPE financing transactions, including previously issued Wells Notices that have now been resolved without charges.
  • Management says the company can now concentrate on operational priorities and explore strategic funding opportunities and partnerships.
  • AIxCrypto (AIXC), with FFAI as its majority controlling shareholder, noted the conclusion eliminates significant regulatory uncertainty.
  • AIXC shares surged approximately 70% during premarket trading hours following the announcement.

Faraday Future Intelligent Electric (FFAI) just received potentially its most significant positive development in recent memory. The Securities and Exchange Commission has officially terminated its inquiry into the electric vehicle company without pursuing any enforcement measures against FFAI or its leadership team.


FFAI Stock Card
Faraday Future Intelligent Electric Inc., FFAI

The regulatory agency had previously delivered Wells Notices connected to FFAI’s 2021 private investment in public equity (PIPE) deal and its business combination through a special purpose acquisition company. Wells Notices represent formal indications that SEC staff may recommend enforcement proceedings — making a no-action conclusion particularly significant.

The electric vehicle manufacturer confirmed the development through an official disclosure, noting that the SEC’s extensive investigation spanning multiple years has reached its conclusion.

According to FFAI’s announcement, the company now operates with “regulatory clarity” and can dedicate full attention to core operational activities. Management emphasized the ability to pursue strategic capital raises and forge new business partnerships moving forward.

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This represents a considerably clearer path than the company has enjoyed recently.

AIxCrypto’s Response

AIxCrypto (AIXC), where FFAI holds a majority controlling stake, issued its own acknowledgment of the SEC’s determination. The firm indicated that this resolution eliminates uncertainty and creates a more favorable environment for executing its strategic roadmap.

AIXC reiterated commitment to its three-tier ecosystem architecture spanning infrastructure, protocol, and application components. This encompasses development in AI Agents, Embodied AI technologies, blockchain-based coordination systems, and digital connectivity linked to tangible assets.

Market participants responded decisively. AIXC stock rocketed approximately 70% higher in premarket session following the disclosure.

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FFAI shares, meanwhile, were trading down 10.34% at publication time, potentially indicating that some market participants had already anticipated a favorable resolution or are responding to broader factors affecting the security.

Investigation Scope and Context

The SEC’s inquiry examined transactions associated with FFAI’s public market entry. The company went public through a SPAC transaction in 2021, a pathway that attracted considerable regulatory examination throughout the electric vehicle industry.

PIPE financing — representing private capital invested in public companies — constituted another component of the SEC’s review. Such arrangements proliferated during the SPAC market surge and subsequently drew increased regulatory oversight.

The delivery of Wells Notices had signaled the investigation had reached an advanced phase, rendering the no-enforcement determination a particularly meaningful outcome for the organization.

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FFAI emphasized that with regulatory proceedings concluded, the company stands ready to execute on business objectives without the burden of pending regulatory matters.

The 70% premarket surge in AIXC demonstrates the market’s perception of how intimately that company’s prospects were connected to the regulatory standing of its majority owner.

Based on current available data, no enforcement measures have been pursued against FFAI, its management team, or any associated individuals regarding this investigation.

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AUD/USD Falls Below Key Support

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AUD/USD Falls Below Key Support

As the AUD/USD chart indicates, the Australian dollar is showing weakness against the US dollar at the start of the week. Notably, we are seeing a bearish breakout below the lower boundary of an important ascending channel that had been in place since December 2025.

Among the key bearish factors:

→ increased demand for the US dollar as a safe-haven asset amid the United States’ involvement in large-scale military actions against Iran. US President Donald Trump has threatened strikes on Iranian power infrastructure if the Strait of Hormuz remains closed, while Tehran has warned of potential attacks on key US and Israeli facilities;

→ a decline in Asian equity markets, which are sensitive to disruptions in energy supplies from the Middle East. In turn, the value of the Australian dollar is closely tied to commodity exports from Australia to China;

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→ traders’ expectations ahead of inflation data due to be released on Wednesday.

Technical Analysis of AUD/USD

On 24 February, we confirmed the validity of the ascending channel, within which we:
→ identified signs of weakness during the formation of highs A and B;
→ suggested a potential break below the channel median with a move towards the psychological level of 0.7000.

Indeed, the price failed to surpass high B and moved into the lower half of the channel in early March. As shown by the first arrow, on 3 March it briefly dipped below the psychological 0.7000 level before quickly rebounding, signalling strong demand.

However, the underlying weakness near highs A and B persisted. Between 10–12 March, bulls attempted to break through these resistance levels but failed to hold above the new high. From a Smart Money Concept perspective, this resembles a liquidity grab in the buy-side liquidity (BSL) zone — a bearish signal.

In the short term, a rebound from the March low (around 0.6950) is possible. However, when considering a broader outlook, traders should not rule out:
→ the 0.7000 level turning into resistance;
→ further development of a downward trend within an increasingly well-defined descending channel.

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BTC’s most reliable crash signal has triggered again

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Bitcoin's daily price swings in candlestick format with the MACD histogram. (TradingView)

Bitcoin bulls should be on their toes: A key momentum indicator that has been disturbingly accurate at flagging selloffs since the largest cryptocurrency hit a record high in October has just triggered.

The indicator is the moving average convergence divergence histogram, better known as the MACD. It’s just crossed below zero for the third time, indicating a renewed bearish shift in momentum.

What is MACD anyway?

Before we dive into the market signal, let’s see how the MACD works.

The indicator uses two lines. The first is the MACD line, calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. The gap between the two helps indicate momentum.

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The other is the Signal line, which is the nine-day exponential moving average of the MACD line itself.

The really interesting part, though, is the histogram. That plots the difference between the MACD and Signal lines.

When the histogram turns positive, it signals bullish momentum; when it turns negative, as now, it signals bearish momentum. In both cases, the slope’s steepness indicates how strong the momentum is.

The indicator is popular because it cuts through market noise to provide a clear picture of trend strength and changes. And right now, it’s screaming “bearish.”

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Bitcoin's daily price swings in candlestick format with the MACD histogram. (TradingView)
Bitcoin’s daily chart with the MACD histogram. (TradingView)

BTC gets crushed when MACD turns red

Since bitcoin topped out above $126,000 in October, MACD has developed an almost-perfect track record. When it turned bearish, bitcoin crashed hard. When it flipped bullish, there were weak bounces that went nowhere.

The evidence is damning. Bitcoin’s weekslong back-and-forth trading above $100,000 came to an abrupt end after the histogram crossed below zero on Nov. 3. Prices plummeted from around $106,000 to $80,000 by Nov. 21.

A brief bounce followed, as the MACD turned positive. But it was short-lived. Just two months later, on Jan. 20, the MACD flashed bearish again with bitcoin around $90,000. The result was the same as before — a face-ripping decline to nearly $60,000 by Feb. 6, once again followed by a minor bounce, backed by a positive MACD with upside capped at around $75,000.

So far, every bullish MACD cross has produced nothing but disappointing bounces that quickly fade, paving the way for deeper selloffs once the indicator turns red. It’s a strong signal that sellers are firmly in control, capable of crushing any attempts by the bulls to regain momentum.

And now, the indicator is flashing red again. Sure, past performance doesn’t guarantee future results. But when a signal with such a strong track record is flashing red, traders are better off paying heed than throwing caution to the wind. Bitcoin’s resilience during the war with Iran may be about to crumble.

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ZachXBT Exposes Fake Accounts Driving Crypto Scams on X

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ZachXBT Exposes Fake Accounts Driving Crypto Scams on X

Blockchain sleuth ZachXBT said Monday he uncovered a coordinated network of accounts on X using exaggerated or fake war and geopolitical posts to lure users into crypto scams.

The investigation identified more than 10 linked X accounts allegedly purchased with follower bases that pushed sensational content and scam links, according to an X thread and screenshots shared by ZachXBT.

The fake accounts used AI to impersonate prominent social media influencers such as Mario Nawfal, flooding X with “doomposts” and driving engagement before promoting fake crypto giveaways and pump-and-dump token schemes. “Onchain evidence suggests the scheme profited six figures,” ZachXBT said, adding that the group has been farming engagement and may be preparing another scam.

The report highlights the persistent problem of fake accounts and bot activity on social media platforms like X, even as the company says it is taking steps to combat such behavior.

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Scam mechanics based on viral geopolitical posts

According to ZachXBT, the scheme started with accounts that had existing followers. These accounts repeatedly posted exaggerated war or political content, often sensational or misleading, which quickly went viral and attracted millions of views.

Once attention peaked, the fake accounts pivoted to promote fraudulent token giveaways or scam tokens. One such promotion involved the pump-and-dump crypto scam referred to as Oramama on Feb. 22, ZachXBT noted.

Source: ZachXBT

ZachXBT spotted numerous large accounts in the replies and quotes that fell for the engagement bait, only to boost the post’s reach unknowingly.

Social media’s scam problem persists despite platform changes

The revelation comes as social media platforms like X have been trying to clamp down on bots and scam activity.

Last month, X’s product chief Nikita Bier announced enhanced anti‑bot detection and removal measures, along with user flags for AI‑generated content, as part of broader efforts to curb automated spam and misinformation.

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Source: Nikita Bier

Still, the ZachXBT findings expose how quickly coordinated accounts can build engagement and mislead users.

Related: Coinbase-backed CoinDCX founders questioned in fraud case: Report

The investigator suggested that platform manipulation should lead to bans and legal consequences, calling social media users to review recent posts and account details before engaging with any content.

ZachXBT also shared a list of X users he believes to be involved in the scam in case they change usernames or deactivate their accounts.

Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?

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