Category: CRYPTOCURRENCY

Understanding Bitcoin Network Consensus and Time Synchronization

The Bitcoin network is a decentralized system that relies on the collective agreement of all nodes to validate transactions and create new blocks. However, as with any distributed system, there are challenges in achieving consensus among independently operating nodes. A key aspect of this issue is time synchronization.

In this article, we will delve deeper into how multiple nodes starting at different points impacts the Bitcoin network’s consensus process, especially when it comes to the mining process and the creation of new blocks.

Multiple Nodes Starting at Different Points: A Critical Issue

When multiple nodes start operating on the Bitcoin blockchain simultaneously, they can potentially disrupt the network’s consensus process. The main concern is that if two or more nodes find a valid block before another node finds one, they can claim to be the originator of that block.

For example, imagine two nodes, Node A and Node B, both connected to a central mining pool. Both nodes begin finding blocks independently, but their discoveries occur at slightly different times due to varying network latency and delays in connecting nodes. If Node A finds a valid block before Node B, Node B’s claim is challenged by the community.

This can lead to a situation where multiple forks emerge, with each fork creating a new version of the Bitcoin blockchain (a “fork”). The resulting chain branches off from the original Bitcoin blockchain at different points in time. This phenomenon is known as a “block fork” or “chain split.”

Competitor Mining and Block Creation

The ability to mine blocks simultaneously is facilitated by the design of the Bitcoin protocol. When a new block is created, it includes a unique hash that connects it to a previously mined block. The process of finding this hash on other nodes relies on all nodes agreeing on the current state of the blockchain.

When multiple nodes begin mining at the same time, they are essentially competing for the same valid hash. This can lead to simultaneous block discoveries and subsequent disputes over who found them first.

Time Synchronization: A Key Factor in Network Consensus

To mitigate the effects of simultaneous mining and block creation, the Bitcoin network relies on a mechanism called “time synchronization.” Essentially, each node maintains its own local clock, which is synchronized with other nodes via a peer-to-peer communication channel.

The idea is that as long as all nodes agree on a common time standard (i.e., their clocks are synchronized), they will be able to correctly verify and validate transactions. In the case of Bitcoin, this means that each node’s local clock must match the current block time (which is typically 10 minutes).

Time Synchronization Between Nodes

The question remains: if multiple nodes start at different points in time, do we need to synchronize them so that they operate on the same clock? The answer lies in the design of the Bitcoin protocol.

When a node finds a valid block, it sends its discovery to all other participating nodes. These nodes then synchronize their local clocks with each other and update their own blocks accordingly. This process ensures that all nodes agree on the current state of the blockchain.

How ​​​​Nodes Maintain Time Synchronization

To maintain time synchronization, the Bitcoin network employs several mechanisms:

• Heartbeats: Each node sends periodic heartbeats (approximately every 10 minutes) to confirm that it is still online and has not been disconnected from the network.

• Block Verification: When a new block is created, the miner verifies its validity by checking that all nodes have synchronized their clocks with each other.

• Node Reconnection: If a node’s connection to the network is lost or severed, it will periodically send a heartbeat to reestablish communication.

ethereum sent address

Ethereum: A Deep Dive into Difficulty Computing

As one of the most widely used blockchain platforms, Ethereum relies heavily on its complex algorithms to ensure the security and stability of its network. One of the key aspects is the difficulty computation – the process that determines how often new blocks are created, which in turn affects the scalability and performance of the network. In this article, we will explain how the difficulty computation works in plain English.

What is Difficulty?

Difficulty refers to the time it takes a miner to solve a complex mathematical puzzle (known as a “hash”) that proves the legitimacy of a new block on the Ethereum blockchain. This process is called proof-of-work (PoW). The harder the puzzle, the longer it takes miners to crack it.

Proof-of-Work Process

To understand the difficulty calculation, let’s review the basic steps:

• Miner Task: The miner creates a block of new transactions (the “block”) and adds them to the blockchain.

• Hash Function: The miner uses a complex algorithm called SHA-256 (Secure Hash Algorithm 256) to generate a unique digital fingerprint for each block. This hash function takes a large input (the block content) and produces a fixed-sized output (the hash).

• Target Difficulty: The miner aims to find a hash that meets the network’s target difficulty. In other words, they must solve a puzzle to prove that the new block is valid.

• Proof-of-Work Algorithm: Miners use various techniques to optimize the solution space and speed up the process. One common method is to use multiple “guesses” (different solutions) until one of them meets the target difficulty.

Target Difficulty Formula

The target difficulty is calculated using a complex formula that takes into account several factors, including:

• Block Height: The number of blocks already added to the blockchain.

• Network Hash Power

  : The combined hash power of all Ethereum miners. This represents the total computing power of the network.

• Time Since Block Creation: How much time has passed since a new block was created.

The formula looks like this:

Difficulty = (Block Height / Time Since Block Creation) ^ Network Hash Power

How ​​Does the Difficulty Affect the Network?

A higher difficulty requires more computing power and energy to solve the puzzle. This in turn increases the rate at which blocks are created and contributes to network congestion. Here’s why:

• Slower Block Creation: As the difficulty increases, miners take longer to create new blocks.

• Higher Congestion: As more computing resources are devoted to solving puzzles, the network becomes congested and slower.

• Higher Energy Demand: Higher difficulty targets require more energy to power mining hardware, which can lead to higher electricity costs.

Conclusion

Simply put, calculating difficulty in Ethereum is a complex process that involves solving complex mathematical puzzles (proof-of-work) to create new blocks. The total computational power of the network and the time since block creation are used to determine how often new blocks are created. A high difficulty target requires more computational power and energy, which can lead to slower block creation rates and higher congestion.

While this may seem daunting, the Ethereum community has developed various techniques to optimize the solution space and improve the overall performance of the network. As the network grows and evolves, accurate difficulty calculations will become increasingly important to ensure the security and stability of the entire system.

Understanding Ethereum Wallets: Unpacking the Public Key from the Address

As a new cryptocurrency enthusiast or developer, you need to understand how Ethereum wallets store and manage private keys. Despite its simplicity, understanding the inner workings of Ethereum wallets is crucial to creating secure transactions and managing funds on the platform.

In this article, we will delve into the process of extracting a public key from an Ethereum address. At first it may seem illogical, but you will be surprised how this information is actually used to facilitate transactions in the blockchain.

Address Format

An Ethereum address consists of three parts:

• Prefix: 4-character string identifying the network (eg “0x”, “0XB9”)

• Group: an alphanumeric string representing a unique wallet or account identifier

• Hash

  : A 64-character hexadecimal string that serves as a checksum

Open Key Extraction

When you create an Ethereum address, a public key is associated with it. This public key does not match the private key used to sign transactions.

The process of extracting the public key from the address includes:

• Analysis of the address: the wallet or smart contract takes the address and disassembles it into its component parts.

• Group extraction: the wallet extracts part of the group from the address that contains the unique identifier of the account.

• Hash Analysis: The wallet analyzes the hash to determine if it is valid and belongs to the account owner.

Why do you need a public key?

Although only the public key is used to sign transactions in the blockchain, the wallet still needs to know this information to:

• Securely store private keys: even without storing the private key, wallets must store it safely and generate new ones as needed.

• Account Ownership Verification: Wallets can use a public key to verify that a specific address belongs to a specific account owner.

Usage example

Suppose you have an Ethereum wallet with the address 0x1234567890abcdef. The corresponding private key is securely stored in the wallet. To get a public key, you need:

• Break the address into parts.

• Extract part of the group (for example, “123456”).

• Analyze the hash to verify its validity.

With this extracted public key, you can use it to sign transactions on the blockchain and interact with other wallets that support Ethereum.

Conclusion

In conclusion, it should be noted that although addresses are indeed simply encoded, hashed public keys with a prefix, they actually store information about an account or wallet. The process of extracting the public key from the address includes parsing the address, extracting part of the group and analyzing the hash to determine its validity. This understanding is necessary for creating secure transactions in Ethereum and effective fund management.

By understanding this concept, you will be better prepared to navigate the world of Ethereum wallets and make informed decisions when interacting with the platform.

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“Toncoin (TON) Fundamental Analysis: Uncovering the Hidden Gems of the Cryptocurrency Market”

Toncoin (TON) is a popular cryptocurrency that has been making waves in the cryptocurrency market with its unique features and growth potential. As a fundamental analysis, this article aims to delve deeper into the reasons for TON’s success, identify its key strengths, and review the current market conditions.

What is Toncoin?

Toncoin (TON) is an open-source decentralized platform that enables the creation of a new cryptocurrency called Ton. It was launched in 2017 as a fork of the Monero blockchain with the aim of providing a more efficient and scalable alternative to existing cryptocurrencies. TON’s original token, TON, is used for a variety of purposes, including governance, security, and utility.

Key Strengths:

• Scalability: Toncoin’s architecture is designed to scale horizontally, allowing it to process a high number of transactions per second without sacrificing performance. This makes it an attractive option for businesses and individuals looking to process large amounts of data.

• Security: TON’s unique consensus algorithm, called Proof-of-Work (PoW), uses a novel combination of cryptographic techniques to ensure network security. Additionally, Toncoin’s proprietary hardware wallet increases the security of users’ assets.

• Community Support: The Toncoin community is active and engaged, with over 5 million registered users worldwide. This strong support base drives the adoption and overall growth of cryptocurrencies.

Fundamental Analysis:

To perform a complete fundamental analysis of TON, we need to look at its key metrics:

• Price Performance: The price of TON has experienced significant fluctuations in recent months, and has clearly increased from 2017 to 2020.

• Market Cap: As of March 2023, the market cap of Toncoin (TON) is around $200 million, indicating its relatively small size compared to other cryptocurrencies.

• Supply to Demand Ratio: TON has a relatively low supply ratio, with an estimated 100 billion coins in circulation. However, the demand ratio is higher, indicating strong buying interest from potential users.

Market Conditions:

The cryptocurrency market has recently seen significant volatility due to several factors, including:

• Regulatory Climate: The regulatory environment for cryptocurrencies remains uncertain, increasing uncertainty and risk appetite.

• Liquidity Restrictions: High liquidity requirements have become a major challenge for many cryptocurrencies, including TON.

• Competitive Landscape:

  The cryptocurrency market is highly competitive, with several new entrants vying for market share.

Conclusion:

A fundamental analysis of Toncoin (TON) reveals its unique strengths and appeal in the cryptocurrency market. With a strong consensus algorithm, dedicated hardware wallet security, and active community support, TON has the potential to become a leading cryptocurrency in the future. However, it is essential to consider the current market conditions, regulatory environment, and competitive landscape before making investment decisions.

Recommendation:

Based on our analysis, we recommend a cautious approach when investing in Toncoin (TON). While its price has shown significant growth, market volatility and an uncertain regulatory environment make it challenging to predict its future performance. As with all investments, it is important to conduct thorough research and consider a number of factors before making an informed decision.

Disclaimer:

This article is for informational purposes only and should not be construed as investment advice. Cryptocurrency markets are highly volatile, and prices can fluctuate rapidly.

CONTINUATION PATTERN INVESTMENT RETURNS

Ethereum: Understanding the Bitcoin Testing System

As a leading decentralized platform, Ethereum’s test suite is critical to ensuring the correctness and reliability of its blockchain technology. Written primarily in C++, the test framework plays a crucial role in testing the behavior of various components, including Bitcoin Core (BTC). In this article, we explore how the test framework interacts with Bitcoin Core code and RPC calls to enable regression testing capabilities.

Background

Bitcoin Core is an open-source implementation of the Bitcoin protocol. Development is led by Satoshi Nakamoto’s old team, which has released the source code of the main components under a permissive license (MIT). While Bitcoin Core itself is not publicly available as a binary package, its core components, including the test suite, are accessible through various APIs and tools.

Since Ethereum is a layer 1 blockchain platform, it relies heavily on Bitcoin Core functionality to ensure the integrity of its network. The Ethereum test suite consists of several modules, each of which is responsible for testing specific aspects of the blockchain ecosystem. These modules interact with Bitcoin Core code through various interfaces, including:

• Bitcoin Core API: The official Bitcoin Core API provides a set of functions that allow developers to interact with core components such as transaction processing, wallet management, and network connectivity.

• Remote Procedure Call (RPC) calls: Bitcoin Core uses RPC calls to communicate between network nodes. This allows for asynchronous communication between nodes and the use of features such as executing smart contracts and decentralized applications.

How ​​the test framework interacts with Bitcoin Core code

The Ethereum test suite uses a combination of C++ functions and object-oriented programming principles to interact with Bitcoin Core code. Here’s how it works:

• Mocking: The test system uses mocking techniques to isolate dependencies and simplify interaction with Bitcoin Core code. This allows developers to focus on testing specific components without worrying about complex dependencies.

• Bitcoin Core API calls: The test suite uses official Bitcoin Core API functions to make requests to core components, such as “getTransaction” or “getBalance”. These API calls are often implemented using C++ and rely on the underlying Bitcoin Core code.

• RPC calls: When necessary, the test system makes RPC calls via the “eip-155” API, which enables asynchronous communication between Ethereum network nodes.

Example: Testing a simple operation

Let’s illustrate how the test framework interacts with Bitcoin Core code using a simple transaction test example:

// TestTransaction.cpp (Bitcoin Core API call)
#include 
void TestTransaction::testGetTransaction() {
//Create a new operation object
auto tx = createTransaction();
//Get the transaction ID using the getTransaction function
uint256 txId;
tx->getTransactionID(txId);
//Print the transaction ID (expected: “1234567890abcdef”)
std::cout << "Transaction ID: " << txId << std::endl;
// Delete the operation object
delete tx;
}

“` cpp

// TestTransaction.cpp (RPC call)

#include

internet digital layer

Ethereum: Spending a Low-Fee Transaction by Tracking Higher-Fee Transactions

In the world of cryptocurrency trading, there is no such thing as “free” when it comes to transaction processing. As a trader, you need to think strategically about how to optimize your transactions while minimizing fees. This article will explore the concept of spending a low-fee transaction and why tracking higher-fee transactions can be more beneficial in the long run.

The Problem with Low-Fee Transactions

When it comes to Ethereum (ETH), the native cryptocurrency of the Ethereum network, spending a low-fee transaction is often not as efficient as you might think. In fact, for many users, these low-fee transactions can be the equivalent of charging a high fee. This is because most nodes on the Ethereum network have a high threshold for allowing transactions to be processed without being confirmed.

Why track transactions with higher fees?

So how can you make more efficient use of your cryptocurrency spending? The answer lies in the concept of “spending production” and the fees associated with it. Here’s an example:

Let’s say you want to spend some ETH on a transaction A that has no fee. This is relatively straightforward, as the transaction is already confirmed by multiple nodes on the Ethereum network.

However, if you then broadcast another transaction B that spends one of the existing results (e.g. 10 ETH) and has a higher fee associated with it, your spending production will be reduced. In this case:

• You will still have to wait for at least two transactions to be confirmed before your spending result can be updated in the Ethereum ledger.

• The network will first verify B as a new transaction, which can take some time. This means you will lose more of your available ETH in the meantime.

Benefits of Tracking Higher Fee Transactions

By following this approach, you are essentially “spending” your results twice:

• You spend an output (B) and get to use it immediately.

• The network first verifies B as a new transaction, which takes some time.

This strategy allows you to use the result of your spend more efficiently by allocating available ETH in a way that minimizes downtime and reduces the overall burden of fees on the network.

Key Takeaways

• Fees are an important consideration when trading cryptocurrencies.

• The fees associated with each transaction can be substantial, especially for high-fee transactions like B.

• By following this approach, you can use the result of your spend more efficiently by “spending” it twice.

While this strategy may seem counterintuitive at first, it is essential to understand the underlying mechanics of the Ethereum network. By optimizing your trading strategy through careful analysis of expenses and fees, you can minimize downtime and maximize your return on investment.

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Blockchain Fork Probability: A Complex Landscape

Ethereum, one of the most popular blockchain platforms, has seen an increasing number of chain forks since its launch. However, for new users, understanding the probabilities of these events can be a daunting task. In this article, we will delve into the intricacies of Ethereum fork probability and find out if there is a general formula to calculate it.

Probability of Finding a New Block

In a blockchain network, each block contains a unique code that is added to the chain as more blocks are mined. The number of new blocks that can be found in a given period of time is called the “block reward halving frequency.” This phenomenon occurs because the block reward halves every four years, making it less likely for users to find a new block.

The probability of finding a new block is proportional to the number of unconfirmed transactions on the network and the block reward. However, this formula does not take into account other factors that contribute to the frequency of forks, such as:

• Network congestion

  : As more and more users connect to the network, it becomes increasingly difficult to find new blocks.

• Block size limits

  : The maximum block size limit set by the Ethereum consensus algorithm limits the size of blocks, which affects the number of blocks that can be found in a given period of time.

General formula: Fork probability

Due to the complex interplay of network conditions and block reward dynamics, there is no single formula that can accurately predict the probability of a fork. However, we can try to make a rough estimate based on historical data and theoretical models.

Let’s assume a simplified model in which:

• Network congestion: The number of unconfirmed transactions on the network is proportional to the total number of transactions, which in turn depends on the block reward per user.

• Block size limits: The maximum block size limit affects medium to large blocks.

Based on these assumptions, we can estimate the probability of a fork using historical data:

Fork probability formula

P(forking) ≈ 1 – (1 / (total number of unconfirmed transactions \* block reward per user))^((frequency of block reward halving / block size limit))

This formula is purely theoretical and should be considered a rough estimate. The probability of an actual fork likely depends on the specific network conditions, for example:

• Network congestion: Large values ​​of N (number of unconfirmed transactions) can increase the probability of a fork.

• Block size limits: Increasing the block size can reduce the fork frequency.

Real-life example

To illustrate the challenges of calculating fork probability, let’s consider an example using real-world data. Let’s assume the total number of users is 100 million (a rough estimate for Ethereum). We also assume that the block reward per user is 10 ETH (a fictitious value).

Using the formula above, we can calculate the expected fork probability:

P(fork) ≈ 1 – (1 / 100,000,000 \* 10 ETH)^((4 years / 2 years)) ≈ 0.017%

This estimate assumes that the network is perfectly optimized, which is unlikely in real-world scenarios.

Conclusion

While there is no universal formula for calculating the probability of a fork, a rough estimate can be made using historical data and theoretical models. However, this should be considered a simplified approximation rather than an accurate prediction of actual events. The launch of Ethereum (or any other blockchain) is still largely unpredictable, so it’s important to stay up to date on network conditions and potential risks.

**What’s next?

ethereum does time

Here is a draft of the article:

Metamask: Request for Sepolia Testnet ETH development practice

I am currently learning and experimenting with Ethereum development on the Sepolia testnet, but unfortunately my Sepolia Ether (ETH) in the wallet has run out. As part of my ongoing practice and testing environment, I need enough Sepolia ETH to continue my projects.

Background

Sepolia Testnet is an alternative Ethereum network designed for developers to test and build new smart contracts without the need for a live mainnet. It is a great platform for learning and experimenting with different concepts and ideas before they are implemented on the main Ethereum network.

Current situation

I have about 10 Sepolia ETH left in my wallet, which is not enough to sustain me for an extended testing or development period. I use Metamask as my wallet solution, which allows me to manage multiple wallets securely and efficiently.

Request

Given my current situation, I kindly request that you transfer at least 30 Sepolia ETH from the Sepolia testnet to my MetaMask wallet. This will allow me to continue my development activities without running out of funds.

Why is this necessary

As an active developer on the Sepolia testnet, I need access to a sufficient amount of Sepolia ETH to support my testing and development activities. Without it, I risk having to pause or terminate my work due to lack of funds.

Conclusion

Thank you for your prompt processing of this request. This will allow me to continue working on my Ethereum projects with confidence. If you can help me transfer the required amount of Sepolia ETH from the Sepolia testnet to MetaMask, please let me know and I will provide further assistance if needed.

Thank you for your understanding and support!

ETHEREUM CHAIN

Artificial Intelligence as a Game Changer for Tokenomics in the Crypto Space

The integration of artificial intelligence (AI) into tokenomics, the study and optimization of token economics, has revolutionized the design and use of cryptocurrency projects. In this article, we explore how AI is transforming the field of tokenomics, driving innovation, and shaping the future of the crypto space.

What is Tokenomics?

Tokenomics is a multidisciplinary field that studies the economic and social impacts of digital tokens on their ecosystems. It encompasses several aspects of token economics, including supply and demand dynamics, token distribution, governance structures, and market dynamics. The ultimate goal of tokenomics is to create efficient, scalable, and sustainable token-based systems that support the growth and adoption of blockchain technologies.

Traditional Tokenomics Approaches

Previously, traditional tokenomics approaches relied on manual calculations and trial and error to optimize token economics. This approach often resulted in complex and inefficient token designs, which led to reduced adoption rates and market volatility.

The Rise of AI-Powered Tokenomics

As AI technology advances, it has become an essential tool in tokenomics optimization. By analyzing vast amounts of data, machine learning algorithms can identify patterns, trends, and relationships that were previously unknown. This allows token designers to create more efficient and effective token economics, which improves adoption rates, increases liquidity, and improves market dynamics.

Key AI-powered tokenomic tools and techniques

Blockchain developers use several AI-powered tokenomic tools and techniques to optimize their projects:

• Machine learning-based risk assessment: This approach uses machine learning algorithms to analyze historical market data and predict future price movements.

• Network analysis

  : AI can be used to explore the social network of a cryptocurrency, identifying key players, relationships, and potential bottlenecks.

• Supply chain optimization: By analyzing supply chain data, token designers can optimize their token distribution strategies, reducing costs and increasing market reach.

• Token design and validation: AI-powered tools can help validate and refine token designs and ensure they are efficient, scalable, and compliant with regulations.

Examples of AI-Driven Tokenomics

Several successful blockchain projects have leveraged AI to improve tokenomics:

• NEO (Nem) Blockchain: NEO’s smart contract platform is optimized using machine learning algorithms, enabling faster transaction processing times and improved security.

• Tron (TRX): Tron’s network analysis tool identifies key nodes and bottlenecks in the network, enabling more efficient token distribution and reducing congestion.

• Avalanche (AVAX): Avalanche’s AI-powered risk assessment tool helps predict price movements and optimize liquidity provision.

Benefits of AI-Driven Tokenomics

Integrating AI into tokenomics has numerous benefits:

• Improved efficiency: AI can analyze vast amounts of data quickly, enabling faster decision-making and more efficient token design.

• Improved Security: Machine learning algorithms can help identify potential vulnerabilities and reduce the risk of hacking and manipulation.

• Improved Transparency: AI-powered tools provide a detailed view of the token ecosystem, making it easier to understand market dynamics and optimize the token economy.

• Innovative Solutions: The use of AI in tokenomics drives innovation, allowing developers to create more complex and advanced blockchain systems.

Understanding and resolving the “strange swap transaction error” in Solana

As a Solana developer, you are probably no stranger to the intricacies of the Solana blockchain technology. I recently encountered an error known as “InstructionError(3, IncorrectProgramId)” while trying to create swap transactions on [pump.fun]( a popular decentralized exchange (DEX) on the Solana network.

Error details

When you encounter this error, you will notice three specific errors: InstructionError(3) and IncorrectProgramId. This means that there is a problem with the instruction being sent to Solana, specifically related to a program ID mismatch or incorrect program execution.

What causes the error?

Simply put, the error occurs when instructions sent by a user are not properly formatted for execution on the Solana blockchain. The root cause of this error is usually an incorrect program ID. It can happen:

• Incorrect Program ID: When creating a swap transaction, you must enter the exact Program ID that matches the ID used in your contract code.

• Program Execution Issue: If the instruction being sent has incorrect parameters or arguments, it can cause execution errors on the blockchain.

Why does this happen?

There are several reasons why this error can occur:

• Contract Code Syntax

  : The syntax of Solana contract code can be complex and varied. Incorrectly formatting instructions can lead to program execution issues.

• Chaincode Configuration: Chaincode configuration, such as using specific libraries or dependencies, can also contribute to incorrect Program IDs or execution errors.

Resolving the error

To resolve this issue, you will need to:

• Verify Program ID: Make sure your Program ID is accurate and matches the one listed in your contract code.

• Check Chaincode Configuration: Check your chaincode configuration to make sure it is set up correctly to run on Solana.

• Update Contract Code: If necessary, update your contract code to match the correct instruction format.

Additional Tips

To avoid similar issues in the future:

• Use a code editor or IDE: Use a code editor or integrated development environment (IDE) specifically designed for Solana programming, such as Truffle Suite or Solidity.

• Follow best practices: Follow the best practices and guidelines provided by the Solana community and documentation.

• Test thoroughly: Test your contract code thoroughly before deploying it to the network to catch any errors early.

By understanding the causes of this error and taking steps to resolve it, you should be able to successfully create swap transactions on pump.fun without encountering this strange error.

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