Major Historical Events Crypto Enthusiasts Should Know About In 2023
The crypto space is a hub of activity that may soon become one of the most significant global financial and technological development sectors. Since the introduction of bitcoin, the space has blown up and churned out many developments and projects that have pushed society forward. Much has changed in the sectors where crypto has been involved with constantly developed projects. As such, it has become even more important for users to familiarize themselves with the sector and any monumental events in the space. This guide will summarise the significant historical events in the crypto space in 2022.
Terra’s Collapse
In the first quarter of 2022, Terra’s crash is one of the most significant events impacting cryptocurrencies. Terra, an open-source blockchain payment network tied to stablecoins, experienced one of the largest crashes in history. The network is attached to two tokens; Luna and Terra.
These tokens were pegged to the US dollar via Terra’s UST, one of the most lauded stablecoins in the world. The stablecoin performed relatively well, drawing in many users to Terra’s network and rewarding holders who invested in it.
However, the continuous success of this venture was to be short-lived. Following the failure of Terra’s algorithmic stablecoin, UST, holders were left plummeting in a death spiral. The parent company behind the stablecoin was plagued with a lack of transparency, leading to the holders’ dreams becoming a nightmare. Tens of billions of dollars in market capitalization were erased overnight. In the span of a few hours, Terra and UST abruptly dropped to zero.
This event led to the impoverishment of holders, with many investors who incurred losses filing lawsuits against Terra’s parent company. As a result of this crash, the regulatory pressure on cryptocurrencies has been raised by numerous influential industry leaders.
The Ethereum Merge
Ethereum is a blockchain-based software platform with its native token, ETH. ETH has a market cap of $182,236,715,354, a valuation that makes it the second largest cryptocurrency, only ranking bitcoin. Ethereum’s blockchain-based platform has served as the core of many crypto projects to date. As a result, Ethereum has become one of the most important fixtures in the crypto space.
However, due to some issues emerging from the network’s use, there was a need for changes. These changes came in the form of upgrades to the network that were referred to as the Ethereum merge.
The merge is set to introduce several changes, with the main development being the beacon chain. The upgrade is set to transfer data stored on the current network (the mainnet) to the beacon chain, the improved network that will be used going forward. The merger will also introduce the proof-of-stake system to replace the proof-of-work system that is currently used on the blockchain network.
These developments are set to be launched on September 6, 2022, and are anticipated to impact cryptos greatly. Thus, given the magnitude of the change, the event may just become a monumental point in crypto history.
Cardano’s Vasil Hard Fork
Cardano is a blockchain network created in 2015 as an alternative to other blockchain networks using the proof-of-work system. Cardano’s proof-of-stake system makes it a more efficient alternative when compared to other large networks in the crypto space.
The network also features its native currency, Ada. Following announcements made by the parent company, Cardano’s network is also set to integrate several upgrades. These upcoming changes are termed the Vasil hard fork.
A hard fork is a significant modification to a network’s protocol that permanently diverges from an earlier iteration of the blockchain. In this case, miners can select the blockchain their verification will be directed to. Vasil’s upgrade has been anticipated by the Cardano community and has been delayed from the original estimate of July.
The hard fork will be attained when the network upgrade features 75% of the stake pool operators (SPOs) and three major exchanges. The Vasil hard fork is set to bring in several changes. These changes include improvements in speed, scalability, and the transaction fees charged on the network.
The improvements are set to improve the blockchain’s throughput and shrink transaction sizes. The move will spur a bull run in the year’s final quarter. Thus, as a critical event, the hard fork will be a significant moment in crypto history.
The Central African Republic Legalizing Bitcoin
The month of April saw the Central African Republic pass legislation that authorized the use of bitcoin as a legal tender. The move came as a surprise as the policy was as CAR lacks the infrastructure to support the use of bitcoin.
The presence of a raging civil war spanning over a decade has also added controversy. However, despite these issues, the country has moved to legalize bitcoin on what is understood to be a political and economic basis. CAR’s president authorized the move citing it as a way for the country to create a better future.
The move made the CAR the second country in the world to adopt bitcoin as a legal tender. Looking at the justification given by the president, the ideas match the reasoning El Salvador applied in its legalization policy.
However, despite legalizing bitcoin, the CAR government has temporarily suspended the application of this law to allow for the development of regulations. Thus, given how monumental the consequences may come from the change, enthusiasts must observe how it plays out.
Author’s Take
The events listed above are in motion or yet to occur. However, they are still important due to their effect on the crypto space. While some may have positive consequences, others may slow crypto adoption and use. These events are set to leave a permanent mark by affecting the future of cryptocurrencies. However, as things stand, the outcomes of these events are not set in stone. As such, only time will tell how the events will influence the future of crypto.
