Linea, a Layer 2 chain that leverages ZK-Rollups for scalability and is compatible with Ethereum applications, has been launched by Consensys. During the EthCC conference, the alpha release will be onboarded by testnet partners and made available to the public. Linea aims to provide a low-cost solution for Ethereum application developers and consumers, with transaction costs up to 15 times lower than Ethereum Layer 1. It works with current development tools and is completely compatible with Ethereum Virtual Machine (EVM) bytecode. The network will be used by the Consensys-owned self-custody web3 wallet MetaMask, as well as additional developer tools such as Infura, Diligence, and Hyperledger Besu. Linea has teamed with Nansen to provide developers and investors with comprehensive on-chain data analytics and will incorporate Nansen Query for in-depth network activity insights.
The European Securities and Markets Authority (ESMA) has made proposals to the European Union’s Markets in Crypto Assets (MiCA) regulation for the authorization of crypto firms. The 160-page study addresses how cryptocurrency companies should handle customer complaints and deal with conflicts of interest. MiCA, which goes into effect in 2024, permits wallet providers and exchanges to operate across the 27-country bloc with a single license and establishes reserve requirements for stablecoins connected to the value of other assets. The survey is driven by charges of weak governance and security in the crypto industry, such as the November bankruptcy of the FTX exchange. The government also wants to know about crypto businesses’ planned income, quantity of white papers, and on- and off-chain trade. In October, there will be another round of discussions on sustainability and record-keeping. Applicants must show client money and cryptocurrency segregation, as well as the security of their ICT system and distributed ledger technology. Companies must also identify and manage any conflicting interests with or among clients, such as executing client orders while running a trading platform or having access to secret information about crypto asset issuers.
