By Shelly Melancon (Switzerland)
Crypto enthusiasts received the Ethereum 2.0 announcement with a wave of excitement. The hope was that the upgrade would fix issues associated with the Ethereum network. Ethereum 2.0 has, however, not addressed certain problems regarding transactions, scalability, and sustainability.
Ethereum 2.0 has, however, brought a massive problem insider trading. The problem has made many investors lose money. It is no surprise then that many are excited to receive the news that Telos, a well-known blockchain company, will be launching its EVM. The company said that the EVM would solve problems like insider trading and more. It becomes necessary for us to analyze how Telos approaches this problem.
Telos EVM
The EVM will enable smart contracts to run without modification. The company said that the EVM was built to change decentralized finance space and solve problems other EVMs face. Telos seems to have made specialized solutions to address issues faced on other blockchains with their model. The Telos EVM is expected to function just like Ethereum with some differences. Telos designed the EVM to support applications from other networks without a need for adapting it.
How Telos Eliminates Insider Trading
Ethereum miners employ front running to reduce the costs of trading with their brokers. Many have lost money to these ploys without knowing. Miners, or sometimes the bots they utilize cash in from inside information about trades that are about to happen. The perpetrators can skip queues, finish transactions and carry out other transactions they shouldn’t be allowed to.
The action of inside trading ends up benefiting only the perpetrators. Telos have proposed to solve this problem with a firm rule against insider trading and fixed gas fees. This way, miners can not take advantage of users. The Telos EVM will initiate two blocks with a fixed transaction fee. The speed of EVMs does not allow bots to track high transaction volumes. The First In First Out principle further strengthens the protection as transactions cannot be rearranged in a block for miners to profit.
Solves Problems Of High Gas Fees
Telos also disclosed that they would be tackling the problem of high gas fees. Telos itself is novel for having no fees at all on its blockchain. The EVM built for Ethereum will employ the gas model but have a fixed gas of $0.01.
Telos EVM will put money back in the pockets of many due to the excessive fees on the native Ethereum network. The feature is bound to put Telos ahead of its competitors. At the moment, it is safe to say that it trumps Ethereum in capabilities.
Ethereum is usually the go-to for decentralized projects. However, there are many projects building for a piece of the decentralized ecosystem. Many of these projects have not developed to the point where they can compete as well.
Ethereum started the trading day at $4,250. The altcoin king has since pushed to about $4,424. At the time of writing, it is trading around $4,333 on major exchanges.
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