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Austria based and European regulated crypto & securities broker platform
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ESG (Environmental, Social, and Governance) regulations for crypto assets aim to address their environmental impact (e.g., energy-intensive mining), promote transparency, and ensure ethical governance practices to align the crypto industry with broader sustainability and societal goals. These regulations encourage compliance with standards that mitigate risks and foster trust in digital assets.
Name | Bitpanda Asset Management GmbH, Bitpanda GmbH |
Relevant legal entity identifier | 9845005X9B7N610K0093, 5493007WZ7IFULIL8G21 |
Name of the crypto-asset | Linea |
Consensus Mechanism | Linea is present on the following networks: Ethereum, Linea. The crypto-asset's Proof-of-Stake (PoS) consensus mechanism, introduced with The Merge in 2022, replaces mining with validator staking. Validators must stake at least 32 ETH every block a validator is randomly chosen to propose the next block. Once proposed the other validators verify the blocks integrity. The network operates on a slot and epoch system, where a new block is proposed every 12 seconds, and finalization occurs after two epochs (~12.8 minutes) using Casper-FFG. The Beacon Chain coordinates validators, while the fork-choice rule (LMD-GHOST) ensures the chain follows the heaviest accumulated validator votes. Validators earn rewards for proposing and verifying blocks, but face slashing for malicious behavior or inactivity. PoS aims to improve energy efficiency, security, and scalability, with future upgrades like Proto-Danksharding enhancing transaction efficiency. The Linea Network uses a Zero-Knowledge Rollup (ZK-Rollup) architecture with a zkEVM for Ethereum compatibility, and its consensus is derived from Ethereum's own proof-of-stake security. While the Network has components like a sequencer for ordering transactions and a coordinator for network management, its consensus mechanism is fundamentally linked to the proof and verification process of zero-knowledge proofs and the security of the Ethereum mainnet. Instead of a typical decentralized consensus on a separate blockchain, the Network inherits its security and state finality from Ethereum. |
Incentive Mechanisms and Applicable Fees | Linea is present on the following networks: Ethereum, Linea. The crypto-asset's PoS system secures transactions through validator incentives and economic penalties. Validators stake at least 32 ETH and earn rewards for proposing blocks, attesting to valid ones, and participating in sync committees. Rewards are paid in newly issued ETH and transaction fees. Under EIP-1559, transaction fees consist of a base fee, which is burned to reduce supply, and an optional priority fee (tip) paid to validators. Validators face slashing if they act maliciously and incur penalties for inactivity. This system aims to increase security by aligning incentives while making the crypto-asset's fee structure more predictable and deflationary during high network activity. Like Ethereum, the Network uses a gas system, where gas is the unit of computational effort required to process a transaction. All gas fees on the Network are paid in Ether (ETH). The Network has a base fee that is designed to stabilize at 7 wei. The base fee still decreases or increases based on network traffic, similar to Ethereum, but it does not go below 7 wei. The Network does not require token staking for transaction validation purposes and thus provides no staking rewards. It does not offer incentives for running a full network node. It does charge fees collected by the sequencer for transaction processing. Those fees are paid in ETH, 20% of which are immediately burned while the remaining 80% are converted to Tokens and then burned. |
Beginning of the period | 2024-10-26 |
End of the period | 2025-10-26 |
Energy consumption | 4734.82548 (kWh/a) |