Category: Cryptocurrencies

The cryptocurrencies section covers articles about the basics of cryptocurrencies, how wallets work, the different classes of wallets, how to send or receive digital currencies, basic security, the basics of crypto exchanges, anonymity and regulation.

Categories
Cryptocurrencies

BRD Wallet Review 2020: What Are Its Features, Cost, Pros, And Cons

BRD Wallet is a non-custodial mobile wallet built on the iOS platform. Non-custodial implies that Private keys for your digital assets are held on your mobile device, and not on BRD’s servers. The wallet has gained popularity in the recent past, primarily due to its support for anonymous trading, as well as the inclusion of multilayered security features aimed at preserving the integrity and safety of the user’s account and private keys.

BRD Wallet is a non-custodial mobile wallet built on the iOS platform. Non-custodial implies that Private keys for your digital assets are held on your mobile device, and not on BRD’s servers. The wallet has gained popularity in the recent past, primarily due to its support for anonymous trading, as well as the inclusion of multilayered security features aimed at preserving the integrity and safety of the user’s account and private keys.

BRD Wallet is a non-custodial mobile wallet built on the iOS platform. Non-custodial implies that Private keys for your digital assets are held on your mobile device, and not on BRD’s servers. The wallet has gained popularity in the recent past, primarily due to its support for anonymous trading, as well as the inclusion of multilayered security features aimed at preserving the integrity and safety of the user’s account and private keys.

But BRD is more than just a wallet, it is a blockchain network with its own native token. In this BRD wallet review, we will be looking at all the popular operational and security features associated with BRD, its fees and ease of use, and tell you whether it is a secure wallet.

BRD Key features:

Multiplatform: BRD Wallet is a mobile-based crypto wallet. It is built on the iOS platform and was originally designed for Apple product users. A surge in popularity has, however, seen the release of the android BRD wallet version for Android OS powered devices. 

Fast: The BRD wallet uses the Special Payment Verification (SPV) protocol to connect to the Bitcoin blockchain, effectively guaranteeing the fastest crypto transaction confirmation speeds.

Native tokens: BRD is one of the few networks that maintains its own native token, the BRD Token.

Reward program: The BRD wallet is also one of the few networks that have an active loyalty reward scheme. The more BRD tokens you buy and hold in your wallet, the higher the rewards. 1,000 BRDs will get you 25% off trading fees, 2,500 BRDs gets you access to phone support, while 100,000+ BRDs gets you a phone call with BRD wallet CEO.

Support for debit cards: The BRD wallet doesn’t just make it possible to exchange coins, you can also easily pay for your Bitcoins or any other coins within the BRD network, using debit and credit cards.

Open source technology: The BRD wallet is also established on an open-sourced technology platform. This has, over the years, been vetted and audited by internet security experts with possible loopholes identified and patched. 

Blockchain toolbox: Most recently, BRD introduced the BRD blockchain toolbox referred to as the Blockset. This is a technology platform that blockchain technologists can use to create enterprise apps. According to BRD, Blockset will at first support Bitcoin, XRP, Hedera, and Ethereum blockchains before bringing more networks on board.

Security features:

Password protected: When installing the BRD wallet app, you will be required to set a six-digit password.

Biometric features: In addition to the passcode, BRD also incorporates other security features such as fingerprint and Facial recognition biometrics.

Anonymous trading: When creating a user account with BRD wallet, the company doesn’t ask for information personally identifiable to you, like your name, physical address, or email address. Neither will you be subjected to the KYC verification process. And this allows for anonymous crypto transactions.

12 phrase seed backup: Should you ever forget the account password, or lose access to the mobile device hosting your private keys, you can always recover your BRD wallet account using the 12 phrase recovery, generated by the wallet during installation.

AES hardware encryption: The private keys and any other information stored in your BRD wallet is also highly encrypted using the AES hardware encryption technology.

BRD Wallet ease of use:

BRD wallet is an easy to use crypto vault. While it hosts numerous features, they are all neatly organized on the user dashboard. The BRD wallet account registration processes are also easy and straightforward.

The mobile wallet app is also multilingual, supporting up to 13 international languages and currently available to the crypto community members in over 150 countries across the world. 

Currencies supported

BRD wallet was initially designed to be a Bitcoin Only wallet. Over time, however, the mobile vault has incorporated several other cryptocurrencies and tokens, including Bitcoin Cash and Ethereum, stable coins like TrueUSD, and all the ERC 20 tokens.

It has Bitcoin as the default wallet address, and therefore, you will need to manually add the wallet for any other crypto you wish to transact. The process is, however, easy as you only need to head over to the cryptocurrency exchange list on your user dashboard, and click on the ‘Add’ icon that displays against the coin you wish to buy/send.

BRD crypto wallet cost and other fees

Acquiring the BRD wallet and storing your digital assets is free. Transacting through the app, however, attracts variable fees, depending on factors such as the blockchain network involved, the number of coins being exchanged, and the medium of exchange.

If you, for instance, wish to buy crypto assets using a credit card, you incur as much as 5% in transaction fees.  Your bank or debit card provider may also charge a processing fee when you wish to make cash deposits like USD, EUR, CAD, DKK, and GBP for purchases of different cryptocurrencies within the app.

Setting up the BRD crypto wallet:

How to install a BRD wallet:

Step 1: Download the BRD crypto wallet app from the Google Play Store on your Android or the Apple App Store for your iOS mobile device and install it.

Step 2: Create and memorize a six-digit passcode that you will be using to access the wallet app.

Step 3: The crypto wallet app will then auto-generate 12 phrases that serve as the backup seed for your account. You will need them to recover your wallet and private keys therein if you forget the password.

Step 4: You are now set and can start transferring cryptocurrencies to the wallet and buy or sell in the app-based exchange.

Note: Before you start transacting using the app, we advise that you first add a biometric security feature such as the fingerprint or Face ID to the app as an additional security layer.

Sending and receiving coins:

To receive funds into your BRD Wallet:

Step 1: Log in to your BRD crypto wallet app.

Step 2:  On your user dashboard, click on the coin you wish to receive.

Step 3:  Tap the receive option to display the wallet address and the QR code. Copy either and send them to the party sending you coins.

To send payments from your BRD Wallet:

Step 1: Log in to your BRD crypto wallet app.

Step 2: On your user dashboard, click on the coin you wish to send.

Step 3: Tap the send option to display the payment details. Enter the recipient’s wallet address and the number of coins you wish to send.

Step 4: Confirm the payment details and hit send.

BRD hardware wallet pros and cons:

Pros:

  • Its open-sourced nature and integration of biometric features speak a lot about the app development team’s dedication to its security.
  • The wallet app is relatively easy to use, as it features a friendly user interface.
  • The app simplifies crypto exchanges by making it possible to buy digital assets via debit cards, credit cards, and even cash.
  • It combines a wide range of security features that include; encryption, biometrics, pin code, and open-sourced codes to preserve the integrity of the app.
  • The app has very low latency and some of the fastest bitcoin transaction processing speeds.

Cons:

  • One may consider the number of digital currencies supported by the mobile wallet limiting.
  • It is still a hot wallet, and this implies that it is susceptible to internet threats like remote hacker access and ransomware.
  • Some essential services, like phone support, are only available to individuals with a large number of BRD coin deposits.
  • The fact that it supports credit/debit cards and bank transfers beats its intention of anonymous trading as their transactions can always be tied back to a specific crypto account.

BRD wallet compared to competitors:

Comparing BRD with Infinito crypto wallet apps.

BRD and Infinito are both technologically advanced and highly innovative crypto wallet apps. Equally, Their bots have similar attention to account security as they both advocate for a strong password and biometric backups. However, BRD pales in the face of Infinito when it comes to the number of supported cryptocurrencies and the app’s ease of use. While BRD supports just a handful of coins and tokens, Infinito hosts 2000+ digital currencies.

Comparing the BRD crypto wallet app with Trezor hardware wallet.

The Trezor hardware wallet is superior to the BRD wallet app in three key security and operational areas. First, it stores the owners’ coins offline. Secondly, it has the backup of the physical on-device button used to authorize any crypto transaction. And lastly, it supports more coins and tokens. One may, however, consider the BRD wallet app easier to acquire as it is freely available, easier to use, and more beginner-friendly.

Customer support:

BRD wallet has a fairly responsive customer support team that you can engage with on the live chat, through email or one of their social media handles. This team is multilingual and can communicate in over 13 languages.

The only downside is that you need to buy and maintain a balance of 2,500+ BRD tokens to have access to phone support to BRD’s customer service team. 

Verdict: Is the BRD crypto wallet app safe?

Several features of the BRD crypto wallet app give us a lot of confidence about the security of their wallets, and the safety of private keys stored therein. These include its open-sourced technology, the use of a passcode, the integration of Biometric security features, and the backup seed. BRD crypto app has an above average safety score, but we recommend that you first invest in a very strong antivirus before installing the crypto wallet app. 

Categories
Cryptocurrencies

What is BitTorrent (BTT)?

With blockchain came all manner of possibilities. From the ability to breed virtual cats, to tracking things from source to end. One blockchain project has a big vision: to decentralize the web. This project is Justin Sun’s Tron, and it aims to build a cost-effective, global, and digital content-sharing platform. 

With blockchain came all manner of possibilities. From the ability to breed virtual cats, to tracking things from source to end. One blockchain project has a big vision: to decentralize the web. This project is Justin Sun’s Tron, and it aims to build a cost-effective, global, and digital content-sharing platform. 

With blockchain came all manner of possibilities. From the ability to breed virtual cats, to tracking things from source to end. One blockchain project has a big vision: to decentralize the web. This project is Justin Sun’s Tron, and it aims to build a cost-effective, global, and digital content-sharing platform. 

BitTorrent is a project that already blazed the trail as far as decentralized content-sharing is concerned,  harking back to way before blockchain existed. 

With Tron’s grand ambition to decentralize the internet and BitTorrent’s protocol, there couldn’t be a better match than the two.

What is BitTorrent? 

BitTorrent is a peer-to-peer communication protocol for transferring large files and data over the internet. Files can range from TV shows to movies, to songs, to video clips, and so on. 

The protocol is so widely used it accounted for 3.35% of the entire web in February 2013. To use BitTorrent, senders and receivers use any of Bitcoin clients, e.g., uTorrent qBittorent, Deluge, Zunlei Thunder, and several others. 

Created by programmer Bram Cohen in 2001, BitTorrent is used by 170 million people each month. 

How Does BitTorrent Work? 

The working of BitTorrent can be explained using the terminologies’ seeds’ and “leeches.’

Seeds are the people who host files, or ‘torrents’. Seeds usually break down the files into several pieces so users can download them faster. Anytime you’re downloading a file from a BitTorrent client, you receive different pieces of the file from multiple hosts or seeds. After you download a file, you’re encouraged to become a seed, too, in order to promote the network.

When you opt not to seed, you earn the title of a leech. The protocol relies on more people becoming seeds, which is why leeching is frowned upon. 

What is BTT Token? 

BTT is a crypto token that runs on the Tron Network, much like how ERC-20 tokens on Ethereum’s blockchain. The token is used to power file sharing through the BitTorrent protocol.

As the white paper puts it: “BTT acts as a general-purpose mechanism for transacting in computing resources shared between BitTorrent clients and a liquid market of service requestors and service providers.” 

BTT was created after BitTorrent was purchased by Justin Sun, founder of the Tron blockchain and cryptocurrency.  As Sun said in the press release: “In one giant leap, we can introduce blockchain to hundreds of millions of users around the world and empower a new generation of content creators with the tools to distribute their content directly to others on the web.”

What does the BTT Token Do?

After the BTT token was announced, many users questioned its necessity since BitTorrent has been in existence for long, and users can use the protocol without the need for a token. 

So, why does the crypto world need the token? 

First of all, BitTorrent users can now pay for faster download speeds – with the BTT token. Currently, anyone can download files using the BitTorrent protocol via any of its clients for free. This will not change after BTT. The only difference is the token will incentivize individuals to share more data. 

This will work through users paying BTT to hosts in order to get faster download speeds. The idea is that this incentivizing mechanism will help improve the overall efficiency of the BTT protocol: faster speeds, higher quality, and improved content. This will improve the experience of everyone involved.

Another use of BTT is users will be able to purchase priority access to hosts. Instead of being lumped together with other users, you can buy faster and better-tailored services. Moreover, you get continued access to files as well as the use of others’ resources in the network. This matters, since usually, a user has no incentive to continue hosting a file after download. But with the BTT token in play, they can keep hosting the file on the network. 

For more details on the usability of the token, check out Sun’s explanation in this YouTube video.

Tokenomics of BTT

BTT has a total supply of 990, 000, 000, 000. The coins were distributed as follows:

  • 20% went to the TRON foundation
  • 19.9% went to the BitTorrent’s ecosystem
  • 19% went to the BitTorrent team and the BitTorrent foundation
  • 17% was distributed to the public
  • 10.1% went to Tron’s airdrop program
  • 10% went to the BitTorrent airdrop program
  • 4% remained as partnership tokens

The coin is currently trading at $0.000250 with a market cap of $53 million while ranking at #81 by market cap. It has a 24-hour volume of $70 million and a circulating supply of 212, 116, 500, 000. BTT had an all-time low of $0.000139 on March 13, 2020, and an all-time high of $0.0011861 on May 28, 2019, according to Coinmarketcap.

History of BitTorrent

Bram Cohen, an American programmer, is the brain behind BitTorrent. He created the protocol in 2001, going on to release an updated version in 2013. In June 2018, Tron founder Justin Sun bought it for $120 million in its bid to expand Project Atlas – an initiative by the Tron project to decentralize the internet with the power of blockchain. 

After the deal, BitTorrent soon conducted an initial exchange offering (IEO) via Binance’s Launchpad program, raising $7.2 million in a record 15 minutes. 

Where to Buy and Store BTT 

You can buy BTT form an endless list of exchanges, including Binance, Huobi, Cat.Ex, CoinEX, UpBit, Bithumb, Poloniex, and so on.

Some exchanges will allow you to buy the token with Fiat, while in others, it’s only available in exchange for cryptos such as BTC, BNB, ETH, XRP, and so on. 

Since BTT is a TRC-token, you can store it in any wallet that supports TRX. Some popular options include Bitpie, Ledger, Atomic, Exodus, Math, Hoo, and so on. You can find the full list of choices on Tron’s website. 

Final Thoughts

The BTT token will tokenize the already successful BitTorrent network and, in so doing, improve its functionality in several ways. Some may see the whole thing as an attempt to reinvent the wheel. Others think it’s a  fresh idea. The crypto community just has to wait and see how this one plays out. 

Categories
Cryptocurrencies

How Can the Energy Industry Benefit from Blockchain?

Blockchain is usually perceived as only the building block of the much-hyped virtual currencies. As such, it wouldn’t seem like there is much technology can do for the energy industry. After all, what do cryptocurrencies have to do with the process of generating and distributing electrical power?

Blockchain is usually perceived as only the building block of the much-hyped virtual currencies. As such, it wouldn’t seem like there is much technology can do for the energy industry. After all, what do cryptocurrencies have to do with the process of generating and distributing electrical power?

Blockchain is usually perceived as only the building block of the much-hyped virtual currencies. As such, it wouldn’t seem like there is much technology can do for the energy industry. After all, what do cryptocurrencies have to do with the process of generating and distributing electrical power?

But from an insider’s look, blockchain has the potential to spur growth in the energy sector through its transformative benefits. More so, the energy industry is constantly changing – as seen from the entry of new innovations such as smart metering, electric vehicles, and renewable sources of energy. As such, blockchain technology is a viable solution to help improve efficiency in the industry. 

Ways Blockchain can be used in the Energy Industry.

Blockchain technology promotes transparency and immutability of stored data through its decentralized nature as a ledger system. These characteristics can be beneficial to the complex network of participants in the energy distribution chain, who often suffer from siloed infrastructures and unexpected inefficiencies. 

Here is a detailed look into six major benefits blockchain brings in to the energy industry; 

i) Improved Data Management 

Being a ledger system, blockchain can serve as a database providing users with secure and real-time energy usage data. Other important energy statistics, such as market prices, marginal costs, and fuel prices, can also be stored in the system to allow users to monitor how much they spend on energy. 

Additionally, the blockchain-based database system makes it impossible to corrupt the stored data, which helps enhance transparency. This saves energy providers as well as customers the financial costs associated with accidental clerical errors and intentional data manipulation.

ii) Peer-to-peer Energy Trading 

Over the last few years, energy production has shifted from large, centralized power plants to smaller power generation sources such as windmills and solar farms. This is especially true in “distributed energy grid” systems where electricity is generated and stored by small power plants that are connected to the larger electric grid. 

The integration of blockchain into the system allows the smaller farms to sell excess power to other consumers, decentralizing the energy distribution network. Essentially, the technology creates a peer-to-peer energy market, reducing the role of wholesale and central authorities entities. This helps promote competitive market prices.

iii)Enhance Commodity Trading 

Commodity trading in the energy sector involves massive ledger systems that keep account of the commodity prices at specific moments. Maintaining, securing, and updating these records requires significant resources in terms of money and time, which could otherwise be used to improve other core areas of the trading cycle. 

Applying blockchain technology to commodity trading makes it easier and more affordable to securely record trading data as compared to traditional ledger systems.

iv) Tokenizing Energy

Blockchain can be used to create tokens for use within the energy industry. One of the uses of these tokens is to facilitate a variety of energy market transactions, such as paying bills directly to the provider without involving an intermediary.

In addition to being a medium of payment, the tokens can also serve as an incentive. For instance, by tokenizing the energy grid, consumers can earn tokens for reducing energy wastage in their households. 

Similarly, a tokenized energy grid means that energy is expended depending on household needs. This not only helps with the reduction of energy wastage but also cuts down on utility bills since consumers pay for the exact amount of power they need.

v) Propel Clean Energy as a Mainstream Option 

As governments and environmental activists advocate for clean energy, blockchain can be used to promote the use of renewable energy. This can be achieved by creating a blockchain-based smart grid that allows consumers to compare and choose their energy providers. The transparency in energy choices facilitates the integration of clean energy in the market, where renewables could become consumers’ favorite choice due to their affordability. 

The State of Blockchain in the Energy Industry

Currently, blockchain hasn’t fully permeated the energy industry despite its promising benefits. This is not to say that there aren’t any blockchain-based projects carving a niche for themselves in the vast energy market. In fact, some of them have even partnered with their respective governments to improve service delivery.

However, a good number of blockchain projects are still under development and are yet to materialize their solutions. Their delayed success can be attributed to the following challenges:

  • Conservative Industry Players

Success in an older industry like energy demands solid working experience and knowledge, considering that it’s intertwined with other complex sectors such as law and finance. Therefore, blockchain entrepreneurs need an insider’s insight on how blockchain can be beneficial to the energy industry.

Unfortunately, those with vast working experience and market knowledge of the energy industry aren’t inclined to blockchain solutions. They prefer old hat solutions which have served them fairly well for long. Probably, as the crypto space matures, key industry players in the energy sector will warm up to blockchain solutions. In the meantime, educating the stakeholders on the benefits of blockchain might be helpful.

  • Legacy Gatekeepers 

The integration of blockchain into the energy industry will result in a decentralized market. While such a marketplace is beneficial to the consumers, it threatens the existence of major banks and businesses who, for years, have benefited as intermediaries. Even without taking out their role as the middleman, their control will be diluted once blockchain enters the industry. As such, the industry giants are committed to slowing down the integration of blockchain into the energy industry so as to retain their control over the market. 

  • Strict Government Regulations 

Blockchain has been met with the same type of austerity measures that are imposed on virtual currencies. Likewise, the global energy market, being one of the highly regulated industries in the world, hasn’t been easy on blockchain technology either. It gets even worse knowing that the industry is run by conservative stakeholders who are skeptical about blockchain technology. As such, designing a blockchain solution that can find favor among industry players and energy-sector regulators is quite difficult. 

Conclusion 

Blockchain is a relatively new technology whose awareness is limited to the tech-savvy population. So, the idea of this technology finding use outside the cryptocurrency market is still catching on. In an older industry such as the energy sector, the technology will certainly take time before industry players see it as a solution to existing problems. Hopefully, as aggressive blockchain developers continue to design solutions for the industry, their solutions might serve as the entry point of blockchain into the energy industry. 

Categories
Cryptocurrencies

Best Cryptocurrency Payment Gateways

Cryptocurrency payment gateways are networks that allow merchants to accept Bitcoin and altcoins as means of payment. Through these networks, users from anywhere can purchase products and services from a business that accepts crypto payments, no matter where it’s situated across the globe. 

Cryptocurrency payment gateways are networks that allow merchants to accept Bitcoin and altcoins as means of payment. Through these networks, users from anywhere can purchase products and services from a business that accepts crypto payments, no matter where it’s situated across the globe. 

Cryptocurrency payment gateways are networks that allow merchants to accept Bitcoin and altcoins as means of payment. Through these networks, users from anywhere can purchase products and services from a business that accepts crypto payments, no matter where it’s situated across the globe. 

As well, merchants that accept crypto can overcome barriers that are associated with traditional modes of payment, such as high fees, mandatory identification procedures, and delays. Also, these businesses convert your crypto instantly, so you avoid the risk of losing money in case of a fall in the prices of crypto. 

In this piece, we’ll look at some of the best crypto payment gateways and what they have to offer. But before that, let’s look at why businesses should accept crypto payments, after all. 

Why Should Businesses Accept Bitcoin?

  • Gain a new breed of customers who prefer paying with Bitcoin
  • Offer customers a way to pay discreetly. 
  • Payments are secure and indelibly recorded on the blockchain.
  • Avoid high costs associated with other payment methods.
  • Build a brand reputation as a forward-thinking company
  • Relieve the transaction cost burden of taking business global 
  • Avoid the chargebacks associated with other payment methods. 

With that, let’s looks at some of the companies that are making it possible for businesses to accept payments. 

i) CoinBase Commerce

This is a payment gateway by the company behind one of the biggest crypto exchanges – Coinbase. CoinBase Commerce facilitates the instant conversion from Bitcoin to Fiat without the business having to request for a withdrawal. The company does not charge any fees for merchants, but you will need to pay a network fee to miners.

Payments will clear in the merchant’s bank account from 1 or 2 to 3 business days, depending on the country. Launched in 2018,  the platform currently supports Bitcoin, Ether, Litecoin, Bitcoin Cash, DAI, and USDC coin. The support of USDC coin is particularly important since it can protect customers from countries with unstable currencies such as Zimbabwe, Uzbekistan, Yugoslavia, and so on.   

ii) Coingate

CoinGate is another Bitcoin payment gateway with great options for merchants. It has a user-friendly app through which merchants can sign up and start accepting crypto payments right away. It currently accepts 50+ coins, including the big hitters like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. 

On top of that, the platform supports payments from more than 100 countries. The platform levies a fee of 1% per transaction, which is processed within an hour. Another major selling point is Bitcoin, and Litecoin users can send payments over the Lightning Network, which greatly enhances the speed of transactions and with an added layer of privacy. 

iii) CoinsBank

CoinsBank is another trusted crypto gateway that currently supports Bitcoin, Litecoin, Ether, and Ripple. It features a one-click deposit and withdrawal function that is especially useful to large-volume traders. 

Crypto payments are instantly converted to Fiat currency, so the business will not suffer from any impending price falls of the crypto in question. CoinsBank currently supports the latest security features, such as a two-factor authentication system that helps deter hackers and other types of fraud. 

iv) BitPay

This is one of the most trusted cryptocurrency payment gateways, boasting of clients such as Microsoft, Neteller, airBALTIC, and so on. The platform employs a two-factor authentication to ensure your funds are protected, with a straightforward process that’s easy to use for the less tech-savvy clients. 

Small businesses and startups are at an advantage with BitPay, as they get to accept payments without a fee for the first $1,000 of transactions before incurring a levy of 1% thereafter. BitPay currently supports all countries in the world except the following: Algeria, Bangladesh, Bolivia, Cambodia, Ecuador, Egypt, Indonesia, Iraq, Kyrgyzstan, Macedonia, Morocco, Nepal, Pakistan, and Vietnam. 

v) CoinPayments

Launched in 2013, BitcoinPayments is one of the surest crypto payment gateways out there. This platform excels with the sheer number of cryptocurrencies that it supports – over 1890 at the time of writing. CoinPayments has plugins for big-name stores, such as WooCommerce, Shopify, OpenCart, Magento, OsCommerce, WP eCommerce, and so on. The platform is available in more than 182 countries at the time of writing.

CoinPayments also supports instant confirmation transactions and provides a vault that you can use to better manage your spending by choosing when to access it. The platform is available on both iOS and Android so that you don’t miss out on the crypto revolution. You also have access to a multi-coin wallet equipped with top-notch security. However, you should not store funds for too long in the wallet, as online crypto wallets are vulnerable to hacking. 

vi) Spectrocoin

This is a crypto payment gateway based in Europe. Spectrocoin currently supports Bitcoin, NEM, and DASH cryptocurrencies. It has plugins for several merchants, including ZenCart, Drupal, VirtueMart, Magento, WooCommerce, PrestaShop, and so on. 

With support for over 150 countries, Spectrocoin instantly processes your payments and converts them to your preferred Fiat denomination, so you avoid the risk of volatility. 

vii) GoURL 

GoURL is a crypto payment gateway that works with almost all Bitcoin wallets and is compatible with Bitcoin debit cards, including BitPay card. The platform confirms transactions in 30 seconds, and users who don’t have a website can set up a one-click payment solution through GoURL’s Monetiser Online function.

There are no KYC procedures, no ID needed, no background verifications, etc. GoURL has plugins for customers such as Bitmain, BTC.com, Bueno Wines, View2be, Rodeo Gold, and so on. 

viii) Ikajo

Ikajo is a mainstay in the payments industry, with over 15 years of experience. The company now processes cryptocurrency payments for merchants, who can access customers from 100+ countries from around the globe. 

Merchants signing on the platform get access to instant service at a fee of 1.2%. Ikajo is currently running an affiliate program where merchants can get extra revenue of 50% upon getting other qualified businesses to sign up on the platform. 

ix) AlfaCoins

AlfaCoins supports Bitcoin, Litecoin, Ethereum, Bitcoin Cash, DASH, and XRP cryptocurrencies. The platform features CoinSplit, a function that allows users to split payments between crypto and fiat. Through this feature, AlfaCoins users can take a portion of their earnings as Fiat and hold the rest in a cryptocurrency wallet for HODLing. 

The company accepts payments from all countries, with the only exceptions being Iran and North Korea. Merchants are charged a flat fee of 0.99%, one of the lowest in the crypto payments industry.

So there you have it. With these crypto payment gateway options, you can get started on accepting cryptocurrency payment for your business. This option grants you the ability to secure your funds in a cryptographically-secured environment, free of chargebacks and border restrictions. 

Categories
Cryptocurrencies

What is Grin?

One of cryptocurrency’s biggest selling points is their privacy – the ability to engage in transactions without them being linked to your real-life identity. While this would appear to be the picture on the surface, the reality is that it’s still possible for your transacting history to be traced to your real-life identity and open you up to fraud, interference by the state, and other consequences.

One of cryptocurrency’s biggest selling points is their privacy – the ability to engage in transactions without them being linked to your real-life identity. While this would appear to be the picture on the surface, the reality is that it’s still possible for your transacting history to be traced to your real-life identity and open you up to fraud, interference by the state, and other consequences.

One of cryptocurrency’s biggest selling points is their privacy – the ability to engage in transactions without them being linked to your real-life identity. While this would appear to be the picture on the surface, the reality is that it’s still possible for your transacting history to be traced to your real-life identity and open you up to fraud, interference by the state, and other consequences.

This state is known as ‘pseudonymity,’ and it refers to your ability to transact without the need to use your real-life credentials, but with your transaction trail having the ability to be used to link back to you. 

A bunch of coins called ‘privacy’ coins has been launched in response to this problem. Some of these, like Monero, use features such as ring confidential transactions (RingCTs), which result in high transaction fees and lower transaction throughput. Other features like ZCash’s zk-SNARKs and crypto mixers like CoinJoin involve trusting a third-party, which in itself is against all cryptocurrency stands for. 

Grin is a cryptocurrency that promises to solve all these problems: no half-half anonymity, third-parties, and high transaction fees. 

What is Grin? 

Grin is an implementation of the MimbleWimble blockchain protocol. Launched in January 2019, it is written in the Rust programming language. Grin deviates from the standard cryptocurrency model by having no public ledger. The cryptocurrency utilizes Coinjoin’s anonymization strategy to achieve scalability and privacy.

Grin was born out of the MimbleWimble project, which, in turn, was meant to be a sidechain for Bitcoin. However, it couldn’t mesh well with Bitcoin’s scripting system. This prompted the developers to create an independent cryptocurrency: Grin. 

Grin’s developers believe in staying true to cypherpunk principles – the idea that privacy should be a right and cryptography should be liberally used to achieve it; without governments’ and states’ regulation.

Grin also took an entirely different approach to funding. The project was funded by the community: without an ICO, airdrop, or any of the other traditional approaches. There was “No funny business,” as said by Igno Peverell, a pseudonymous developer of the project.  

What is MimbleWimble? 

MimbleWimble traces its origin to August 2016 when a user with the name ‘majorplayer’ posted a file on the IRC channel #bitcoin-wizards. The file described MimbleWimble as a private and scalable alternative for Bitcoin’s blockchain. This piqued the interest of some blockchain veterans, including Blockstream’s Andrew Poelstra, who then got to working on a more developed concept of the idea and a more organized whitepaper. 

The MimbleWimble protocol seeks to solve two problem areas for blockchain: privacy and scalability. 

Privacy 

MimbleWimble achieves the complete privacy of transactions with the use of Elliptic Curve Cryptography (ECC). ECC is a public key encryption method that will facilitate faster and stronger performance for cryptographic keys. Based on the elliptic curve theory, ECC-enabled public keys are also remarkably shorter. 

Scalability

MimbleWimble achieves scalability by removing old and unnecessary transactions from the blockchain so as to improve efficiency. Spent inputs are aggregated together over time and removed through a protocol known as ‘cut-through.’ As Grin explains on GitHub: 

“similarly to a transaction, all that needs to be checked in a block that ownership has been proven (which comes from transaction kernels) and that the whole block did not add any money supply (other than what’s allowed by Coinbase). There are four matching inputs and outputs can be eliminated, as the contribution to the overall sum cancels out… Note that all transaction structure has been eliminated and the order of inputs and outputs does not matter anymore. However, the sum of all outputs in this block, minus the inputs, it’s still guaranteed to be zero.” 

This ‘pruning’ of old transactions creates more space for newer transactions and prevents the network from clogging, allowing it to be more scalable. 

Grin’s Cuckoo Cycle

Grin employs a new type of proof-of-work algorithm which it calls “Cuckoo Cycle.” The protocol relies on memory, rather than on computing power to mine new coins. This means most types of computing machines can be used to mine Grin, as opposed to many other cryptocurrencies that rely on application-specific integrated circuits (ASICs). 

The idea is to avoid ASICs centralizing the currency and to allow more users to participate in the mining process. Currently, Grin hard forks every six months to modify the mining algorithm so as to keep off ASICs. Grin’s algorithm is designed in such a fashion as to produce new blocks every 10 seconds. 

Grin’s Monetary Policy

Unlike the vast majority of cryptocurrencies, which are mostly used for speculative investment, Grin aims to be a currency that can be used daily as a medium for exchange. For this reason, its developers have designed it in such a way that its value is more stable. 

For one, it has an unlimited supply with a model that encourages users to spend, but not to HODL. It has a static emission of one coin each second; with an inflation that starts high and decreases over time to approach zero, without ever touching it (zero).

Current Status of Grin 

Despite Grin having some of the most forward-thinking approaches in the industry, it’s yet to achieve a solid footing in the industry.

However, as more crypto users gravitate towards more privacy, the coin is likely to see an uptick in usage. Moreover, its use of MimbleWimble, which is arguably popular in the blockchain space, grants it major credibility and, hopefully, potential. 

Grin’s protocol is also designed to support Schnorr signatures, which are shorter and help to create more space in the blockchain. In so doing, they help deal with both the issue of transaction backlog and high transactions’ fees. 

Tokenomics of Grin

As of April 29, 2020, Grin was trading at 0.551442 while ranking at #139. It has a market cap of $22, 302, 118, with a 24-hour volume of $49, 564, 7621. Grin has a circulating supply of 40, 443, 300, and a total supply of the same value. Grin’s all-time high was $10.00 (Jan 28, 2019), while its all-time low was 0. 305828 on (Mar 13, 2020).

Criticism of Grin 

Despite Grin implementing some of the most cutting-edge technology in crypto, it still has its own shortcomings. For instance, for transactions to take place, both parties must both be online. This is not always possible or convenient for participating parties.

There’s also the issue of usability. Although the options have recently expanded somewhat, previously, there was only a command-line wallet for Linux, Windows, and OSX, locking out non-tech-savvy users. 

Finally, MimbleWimble doesn’t have a scripting language. Some people consider this constraining since it means the blockchain is not programmable. But programmability is not a priority for Grin, as Poelstra would explain: “the design philosophy of Grin is to be as simple as possible.” 

Where to Buy Grin

You can buy Grin from any of several platforms, including Coinbase, Kucoin, Hotbit, Bittrex, Poloniex, HitBTC, and several others.

Before you purchase/exchange crypto for Grin, you need to first have a wallet. Some of the available options include Grin Purse, Grin Vault, Ironbelly, Supergrin, Diagon Alley, and Smirk.

Competition

Grin is a privacy coin, but so are other cryptocurrencies (more established ones, to boot) like Zcash, Monero, Komodo, Dash, and so on. However, Grin is still relatively young, and with its unique technology and approach, it holds compelling potential. With the MimbleWimble protocol, it’s directly in competition with only one and lesser-known crypto called Beam. 

Final Thoughts

Grin provides anonymity to users without preconditions. Its cut-through feature to eliminate transactions’ backlog enhances the crypto’s scalability and its ability to be used as a transactional currency. It’s one inherently honest currency – from development to actual use. Grin’s current market rank may be disheartening for fans, but this is likely to change as the crypto community starts edging towards utter anonymity coins. The cryptocurrency is one to keep an eye on. 

 

Categories
Cryptocurrencies

Cryptocurrency and Taxes

Days are gone when cryptocurrency was seen as a fringe currency only suitable for criminal activity. The asset class is now more legitimate in the eyes of the public (and some governments) more than ever. Some employers now pay employees with cryptocurrency, plenty of merchants now use cryptocurrency for transactions, and millions hold the e-currency as a digital store of value.

Days are gone when cryptocurrency was seen as a fringe currency only suitable for criminal activity. The asset class is now more legitimate in the eyes of the public (and some governments) more than ever. Some employers now pay employees with cryptocurrency, plenty of merchants now use cryptocurrency for transactions, and millions hold the e-currency as a digital store of value.

Days are gone when cryptocurrency was seen as a fringe currency only suitable for criminal activity. The asset class is now more legitimate in the eyes of the public (and some governments) more than ever. Some employers now pay employees with cryptocurrency, plenty of merchants now use cryptocurrency for transactions, and millions hold the e-currency as a digital store of value.

As the asset class has risen in popularity, the internal revenue service (IRS) has also started to pay closer attention and has recently taken to clarify how cryptocurrency should be taxed. This is so far as to send warning letters to thousands of crypto holders and investors who it deems to not have complied with crypto tax regulations.

Many crypto traders and investors are still in the woods when it comes to how to properly handle their crypto tax. This article clears some of the confusion surrounding the issue, as well as outlining instances in which you need to declare your crypto tax returns.

Cryptocurrency and Taxes: The Fundamentals

The IRS views and treats cryptocurrency as property – not as currency. The purpose of this is to make crypto taxable, just like other types of property, and it applies to all cryptocurrencies; Bitcoin, Ethereum, Bitcoin Cash, Litecoin, XRP, and so on.

This means that cryptocurrency must be treated by its owners just as they would any other form of property such as stocks, bonds, commodities, real estate, etc. As such, just as you would report capital gains and losses from stock trading, so should you report crypto trades. Failure to file your crypto returns is considered fraud by the IRS.

Bitcoins Held As Capital Assets Are Taxed As Property 

The IRS treats cryptocurrency as property, which means tax principles for property apply. Thus, any profit gained or losses accrued should be taxed as either capital gains or losses. It’s’s just like selling your home or moving stocks. 

Calculating Your Capital Assets

You take your cost basis – the amount you paid for the currency – and calculate how much it’s’s gone down since that date. Capital gains rates for a tax year can be 0, 15, or 20%. 

However, if you’re selling property as part of a trade, it will not be considered as a capital asset and is taxed as ordinary income. This applies to cryptocurrency too. The IRS will look at the ‘character’ of the gain or loss, or, the intent behind your selling. 

Cryptocurrency and Employment

Cryptocurrency used to pay for goods and services is also taxable. Employers paying wages in Bitcoin or any other cryptocurrency should also declare those earnings on W-2 forms. The cryptocurrency value should be converted to the equivalent value in US dollars on the date the payments are made, and careful records made. Also, wages paid in crypto are subject to withholding tax, just like for dollar wages. 

For their part, employees must report their wages earned in crypto as dollars. Also, if you’re self-employed, you must declare any gains accrued from crypto sales transactions. You must convert the crypto to dollars on the day they’re received, and record the figures as tax returns. 

Cryptocurrency Mining and Taxes

Crypto miners, people who utilize computer resources to validate transactions and record them on the blockchain, must also report receipt of the currency as income.

The IRS says when a taxpayer successfully “mines” cryptocurrency and receives earnings from that activity, they must include it in their gross income after determining a fair market value of the cryptocurrency on the day they received it. If a Bitcoin miner is self-employed, his gross earnings minus allowable tax deductions are subject to self-employment tax.

Taxable Events for Crypto

A taxable event is an activity that triggers a tax reporting liability. Such an event triggers a capital gain or loss that must be reported. 

The IRS specifies the following crypto-related events as taxable events: 

  • Trading cryptocurrency to Fiat currency 
  • Trading cryptocurrency to cryptocurrency (you have to calculate the value of the trade at the time of the trade)
  • Paying for goods and services with cryptocurrency (calculate the fair market value for the trade at the time of the trade)
  • Earning wages/ income/ salary in cryptocurrency (including from mining) 

What is Not a Taxable Event?

Gifting someone with cryptocurrency

  • Transferring cryptocurrency
  • Buying cryptocurrency with USD (since you don’t realize gains from that)

What if You Lose Money Trading Cryptocurrency? 

If you lost money while trading crypto, you can actually save money by filing those losses and save money on taxes. You can even strategically save money by selling crypto assets in which you have incurred losses, in a strategy known as Tax Loss Harvesting. 

Short-Term and Long-Term Capital Gains

If you’ve held cryptocurrency for less than a year before selling or exchanging, you should pay short-term capital gains tax. This kind of tax is equal to the ordinary income tax rate. However, if you’ve held cryptocurrency for a period longer than a year without selling or exchanging, you’re liable to pay long-term capital gains tax. 

As such, individuals can pay taxes at a lower rate than the ordinary income tax rate if they have held the cryptocurrency for more than a year. But this will limit the tax deductions that they can claim on long-term capital losses. 

What Happens If You Don’t Pay Your Crypto Taxes?

It’s easy to think that given the anonymity or pseudonymity of cryptocurrencies and the decentralized and peer-to-peer nature of crypto transactions that the government has no way of knowing that you’re trading, selling or buying cryptocurrencies. That might have been true for a while, but the IRS already caught up.

Indeed, the IRS won a court battle against crypto exchange Coinbase, which required the exchange to turn over data (taxpayer ID, dates of birth, addresses, transaction records, and so on) of over 13000 customers.

There is also the fact that the blockchain is publicly available, meaning anyone can view transaction histories at any time. It only takes linking an address to a real identity and determining who the owner of a transaction is.

Choosing not to file your crypto transaction returns is a risky decision that can get you on the wrong side of the law and expose you to criminal prosecution. 

Categories
Cryptocurrencies

How to Prevent, Detect and Recover from Cryptojacking 

As cryptocurrencies grow in popularity and value, they continue to face cyber threats due to their internet-based nature. The most common threats are security breaches targeted at individuals and firms holding significant amounts of digital currencies. 

As cryptocurrencies grow in popularity and value, they continue to face cyber threats due to their internet-based nature. The most common threats are security breaches targeted at individuals and firms holding significant amounts of digital currencies. 

As cryptocurrencies grow in popularity and value, they continue to face cyber threats due to their internet-based nature. The most common threats are security breaches targeted at individuals and firms holding significant amounts of digital currencies. 

Over the years, as crypto mining has become expensive but still lucrative, cryptojacking has become the latest threat facing virtual currency users. 

What is Cryptojacking? 

Generally, cryptojacking is the unauthorized use of a computer, tablet, smartphone by a cybercriminal to mine cryptocurrencies. The process is pretty straightforward as all the hacker has to do is send you a malicious link or infect a website with malware. Once you open the link or the website, the malware auto-executes in your device and starts mining cryptos in the background.

The attack might also be targeted at a business’s cloud platform. By hacking into this platform, the cybercriminals tap into the computer resources resulting in increased cloud usage cost at the expense of the business or institution.  

You might think that cryptojacking was rampant only in 2017 when the market was booming. On the contrary, recent data suggests that the practice has been on an upward trend even in the bearish market. The reason for this is that as the crypto-market turns bearish, mining doesn’t generate enough profits to cover the resources used. This has led cybercriminals to resort to siphoning computational power from unsuspecting victims as a cheaper and less risky alternative to earning returns. 

Most of the cryptojacking is done using JavaScript miner, which is also used for legitimate mining. This means that a perpetrator doesn’t require high technical skills since the miner can easily be bought as a complete kit. What’s worse, it’s impossible to trace a miner to a particular hacker since the mining code doesn’t encrypt their data. This is especially true for anonymous cryptos such as Monero and Zcash, which makes it harder to trace cryptojacking activities. 

How to Detect and Recover Cryptojacking 

It may be hard to trace a cryptojacking hacker, but that doesn’t mean it is impossible to know if your device is compromised. All it takes is just paying attention to your device’s performance. So, here’s how to find out if your device has been infected with crypto mining scripts. 

i) Overheating 

Cryptojacking codes tend to use a lot of electric power, causing your device to overheat. If left unresolved, overheating can damage other hardware, such as the storage drive leading to expensive repairs. Keep in mind that overheating doesn’t necessarily mean your device has been compromised. It can also be caused by unrelated issues such as a damaged fan or dust clog-up. So, ensure your device is always in good condition to make it easy to detect overheating caused by cryptojacking. 

ii) Notice Lag in Performance

Cryptomining code slows down your device’s performance, as it overworks the Central Processing Unit (CPU). You’ll easily notice the lag when performing basic functions such as opening files or typing in details. 

Alternatively, you can look at your CPU’s level of usage from the Task Manager tab on your PC or Activity Monitor on a Mac computer. If the CPU usage is higher than usual, then there’s a good chance that the cryptomining script is running in the background. 

iii) Scan for Malware 

Making use of your device’s security software is one of the best ways of detecting cryptojacking scripts. Although not all scripts can be detected, scanning for these malicious scripts regularly can save you the damage. You should also ensure your security software is always up to date for effectiveness. 

Additionally, if you own a website, it is advised that you scan for any changes in your code. This is where cybercriminals embed cryptojacking codes, so monitoring your site can help you detect threats early enough.

iv) Keep Tabs on Cryptojacking Trends

Cybercriminals are always improving and devising new ways of siphoning your device’s computational power. Staying on top of the latest trends will help you keep with the script’s improvements as you also learn how to detect them. You can get the latest news on cryptojacking from reliable sources such as CoinDesk, CryptoSlate, and other top cryptocurrency blogs. 

Having known how to detect cryptojacking, it’s pretty easy to recover from it. If you are dealing with a JavaScript attack, your first response should be to kill all running tabs. In the same vein, you should uninstall any suspicious browser extensions. Also, blacklist the website from which the attack originated from. It’s also advised that you deploy anti-malware to avoid further attacks. 

With this in mind, let’s look into how you can prevent cryptojacking in the first place. 

Ways of Preventing Cryptojacking

Here are some preventative measures you should take to safeguard your device from cryptojacking:

  • Security Training 

Security training involves building awareness of what cryptojacking attacks look like. This method works perfectly in a business or institutional setting where there are many employees, some of whom aren’t aware of cryptojacking. 

Essentially, the training should be aimed at educating employees on cybersecurity tips such as not clicking on phishing emails or suspicious sites, and downloading files from trusted sources only. 

You may also consider training your IT team on how to identify various attack methods and necessary actions to take to mitigate the threats. 

  • Disable JavaScript

Disabling JavaScript when browsing online, can prevent cryptojacking scripts from running on your computing devices. You can disable it on a single page of a site or even within the entire website. Keeping in mind that JavaScript is widely used by most sites, you should expect some web features to fail to work. 

  • Use Anti-Cryptojacking Extensions

Most of the cryptojacking scripts are found in web browsers and online sites. As such, installing trusted anti-cryptojacking extensions such as minerBlock and No Coin is an effective way of preventing cryptojacking. Ad-blockers can also help detect and block malicious scripts. 

Conclusion

Cryptojacking is not only a threat to the digital currency community but also to everyone who has a computing device. Like any other cybersecurity threat, it is almost impossible to anticipate cryptojacking or even stop it from happening. The only sure way of dealing with these threats is through the early creation of awareness, detection, and prevention. 

Categories
Crypto Daily Topic Cryptocurrencies

Is Bitcoin Really Anonymous?

If you were to ask a few people what makes Bitcoin a special internet currency, you’d most certainly hear that “Bitcoin is anonymous.” That’s because that’s the song sung on social platforms and drummed in by the media constantly. 

If you were to ask a few people what makes Bitcoin a special internet currency, you’d most certainly hear that “Bitcoin is anonymous.” That’s because that’s the song sung on social platforms and drummed in by the media constantly. 

If you were to ask a few people what makes Bitcoin a special internet currency, you’d most certainly hear that “Bitcoin is anonymous.” That’s because that’s the song sung on social platforms and drummed in by the media constantly. 

What people forget is that Bitcoin is also completely transparent. Thus, it would be ironic for it to also be anonymous.

What Bitcoin is, rather, is pseudonymous. This means it’s anonymous, but only up to a degree. 

The Bitcoin website clarifies: “Bitcoin is designed to allow users to send and receive payments with an acceptable level of privacy as well as any other form of money. However, Bitcoin is not anonymous and cannot offer the same level of privacy as cash.”

So what exactly is this pseudonymity? What are the intricacies that make Bitcoin anonymous, yet not? And why should you care? 

Let’s answer each of those questions.

Why Stay Anonymous?

There is a lot of talk about Bitcoin’s anonymity or lack of. Why should it matter? 

First, you need to remember that Bitcoin’s reputation as “the internet’s gold” makes it an ultra-attractive target to fraudsters, hackers, and other such elements. Any weak link they can exploit to unscrupulously acquire Bitcoins, they will. Countless stories of such incidents abound.

There’s also the little matter of privacy. Some people may just want to conduct their transactions privately, for whatever reason. Remember, if your address is linked to your identity, it reveals the following information:

  • How many bitcoins you held/are holding in that address
  • When, and from whom you received them
  • The address to which you sent them

Obviously, this is sensitive information that you never want leaking. Staying anonymous can ensure you protect yourself and your finances.  

How Do Bitcoin Transactions Work?

To get a clearer grasp of Bitcoin’s anonymity, we need to first understand how Bitcoin transactions work. The Bitcoin protocol, at its very basic level, comprises a series of transactions in the form of blocks. The transactions are packages of data, which include transaction ‘inputs and outputs.’ 

Inputs are the Bitcoin addresses from where bitcoins are sent, while outputs are the addresses to which bitcoins are sent. Each Bitcoin transaction transfers coins from one or several inputs to one or several outputs. 

It’s also possible for a transaction to have one input and several outputs, but that rarely happens as it would mean the amount of funds to be sent (output) would be exactly the same as the amount received earlier (input). 

It’s more common to find transactions that consist of multiple smaller inputs that translate into one larger transaction. For instance, if an individual controls two different inputs of 3 bitcoins each, and needs to send 3.5 bitcoins to an online store, the Bitcoin protocol will merge the two inputs into one transaction.

Even then, a transaction with multiple inputs is more common, since Bitcoin uses ‘change’ addresses. Change addresses allow users to spend the extra Bitcoins in a transaction – from one or several inputs, back to them. Consider the example of taking a $10 bill out of your wallet to pay for a $5 ice cream. You would give $5 to the cashier, and they would give $5 back to you. The $5 belongs to you, but it’s not available to you between the time you hand the bill to the cashier and the time they give it back to you. 

What Makes Bitcoin “Anonymous”? 

Bitcoin is widely regarded anonymous due to these reasons: 

First, unlike traditional payment systems, a Bitcoin address is not tied to the transacting individual. A network user can create a new and random address anytime, as many times as they want, without submitting personally-identifying information to anyone. 

Second, even transactions are not tied to the participant(s) of those transactions. Due to this, anyone can transfer bitcoins from any address whose private keys they control to any other address without having to divulge any personal information. Not even the receiver will know the identity of the sender. 

Third, transaction data on the Bitcoin network is transmitted in a random fashion on the peer-to-peer network. While computers on the network connect to each other via identifiable IP addresses, it’s hard to trace exactly where data originated from, thanks to that randomness. No one can know if data originated from a particular node, or if that node merely forwarded it. 

How Are Bitcoin Transactions De-Anonymized? 

There are three ways through which Bitcoin’s anonymity can be undone. 

First, although Bitcoin transactions are transmitted randomly over the network, it’s not a completely foolproof system. If a person has enough time and the tools to connect multiple nodes, it’s possible to determine the origin of a particular transaction. 

Second, Bitcoin addresses can be linked to real identities if the addresses are used together with real identities in one way or another. Some of the ways this could happen are: 

  • Addresses depositing/withdrawing funds from a centralized wallet or crypto exchange
  • Donation addresses that can be found/seen in the public domain
  • Using an address to send bitcoins to someone using your real identity

Thirdly, and perhaps most obviously, all transactions on the Bitcoin network are completely transparent and open for anyone to see. This transparency is the one that enables a determined person to cluster multiple addresses together and trace them to a user. 

What is Clustering? 

When we speak of clustering, what do we mean? 

Clustering is an attempt at analyzing transactions on a network, say, Bitcoin’s. The simplest explanation is this: combining multiple inputs into a single transaction. The inputs in question may have originated from different addresses, but the fact that they could be combined into one transaction means they originated from the same user. 

Change addresses could also be identified and linked to the sender of a transaction. When receiving Bitcoin, the output may not be attributed to you, but it most likely will be attributed to the sender. There’s also a type of software that reveals the owner of a change address to anyone who cares to dig. Such software may be configured in such a manner that it reveals the change address as the last output of transactions. 

Taint analysis is another method used to cluster transactions. This involves calculating the percentage of bitcoins one address received from another address and whether different addresses are, in fact, controlled by one user. 

Another clustering method is amount analysis and timing analysis. Amount analysis tracks how many bitcoins were sent in a particular transaction. Timing analysis tracks when a Bitcoin transaction occurred. 

How to Achieve Privacy over Your Bitcoin Transactions

1. Run Your Own Full Node

Conducting a transaction on the Bitcoin network requires you to have a wallet that is connected to a Bitcoin node. Bitcoin nodes are multiple computers that validate transactions before they’re recorded on the Bitcoin blockchain. If you’re transacting on the Bitcoin transaction and not running a full node, you’re relying on someone else’s, and you don’t have full control over your transactions. 

Not running your full node also has other less obvious implications. For instance, let’s say you’re using a certain wallet. You’re relying on this wallet to transmit and receive funds. Of course, the wallet service will claim not to tie your identity to the serial number of the wallet, and that they don’t collect your information when you’re setting up the wallet. Still, your IP address will be tied to the device, and your privacy and anonymity are compromised. 

You can avoid all of these scenarios by running your own full node. Take control over your transactions by not letting anyone verify your transactions for you. 

2. Use a VPN

An effective VPN (virtual private network) hides your IP address and encrypts your traffic so no one can see where you’re logging in from or what websites you’re visiting. Also, the sites you’re visiting will not know your IP address and your location. 

Running a full node ensures you can hide your location and IP address via a VPN. This way, any interested party cannot tie you to the node. 

When you’re using VPNs, you need to know not all are reliable. For instance, free VPNs will not be of much use. Other VPNs cannot be trusted to protect your data. Before you use any VPN, always conduct your own research to establish its reliability and how it has handled customer data in the past.  

3. Use TOR

TOR is short for The Onion Router and is a powerful anonymity tool that can also hide your IP address. Once activated, TOR operates as a separate browser that disguises your IP address and identity by routing your connection through random nodes on the Tor network such that your traffic cannot be traced back to you. The result is that it will appear as though you were coming from an entirely different country or state. If Bitcoin transactions are routed through Tor, there’s no way for anyone to know where they’re originating from. 

4. Use the Amnesic Incognito Live System (TAILS) 

TAILS is a live system that enables user security and privacy. It features an interface that can mimic the appearance of Windows so that a casual observer will not notice anything unusual with what you’re doing. 

You can use the TAILS system to anonymously send or receive Bitcoin, including from a public computer, without leaving a trace of your activity or identity. 

5. Use the Lightning Network (LN)

As you already know, all transactions on the Bitcoin blockchain are public. If someone knows your address, they can trace transactions back to you. 

Enter the lightning network. The lightning network is an off-chain layer for Bitcoin. Instead of transactions taking place on the Bitcoin blockchain, they take place on the Lightning network, offloading traffic off the Bitcoin blockchain. Like the Bitcoin network, the Lightning network also has multiple nodes. But unlike Bitcoin’s, the Lightning network’s nodes do not keep track of every transaction. The only information stored by the Lightning network is the interaction with other nodes.

Transactions in LN occur via two-way payment channels that only add the final transaction to the blockchain. Since not all transactions are added on the blockchain, LN is a great way to increase the privacy of your transactions. 

Final word

Bitcoin is not anonymous. It provides a certain level of privacy, but it will not guarantee that your transactions will not be traced. With this knowledge, you can know how to stay safe while interacting with Bitcoin and how you can do so. 

Categories
Cryptocurrencies

The Top 5 Smart Contracts Platforms

In its simplest form, a smart contract is a program that verifies and enforces the execution of a contract in a blockchain network. The concept was first proposed by an American computer scientist who is also credited for inventing the first-ever digital currency – Bit Gold. However, the digital coin was never implemented partly due to the ‘double-spending’ problem. 

In its simplest form, a smart contract is a program that verifies and enforces the execution of a contract in a blockchain network. The concept was first proposed by an American computer scientist who is also credited for inventing the first-ever digital currency – Bit Gold. However, the digital coin was never implemented partly due to the ‘double-spending’ problem. 

In its simplest form, a smart contract is a program that verifies and enforces the execution of a contract in a blockchain network. The concept was first proposed by an American computer scientist who is also credited for inventing the first-ever digital currency – Bit Gold. However, the digital coin was never implemented partly due to the ‘double-spending’ problem. 

With the advent of blockchain technology, smart contracts were given the ability to be immutable. This made it impossible for any party to copy or alter transactional data, thereby eliminating the double-spending problem as well as the need for intermediaries. As such, anonymous parties can engage in transparent and irreversible transactions without an external enforcement mechanism.

As the industry continues to mature, there have been multiple smart contract platforms available in the market, each with its own distinguishing features and functionalities. Although it provides diverse options to choose from, it can be overwhelming for new developers to choose the right platform on which to build their decentralized applications or exchanges.  

What Makes a Good Smart Contract Platform? 

Before we can look into some of the best smart contracts in the market right now, it helps to understand the criteria for choosing the right platform. 

To most developers and investors, the value of the underlying token is taken to be the ultimate indicator of a good smart contract platform. But considering the volatility of a token’s value, the price may not be a good indicator after all. If you are interested in a platform that is set to have a long-term future, consider the following factors: 

  • Number of Developers

For a smart contract platform to thrive, it needs to have a good number of active developers in its ecosystem. The number of developers can be equated to the public’s interest. This also helps enhance collaboration in the platform, which is beneficial to new developers joining the community.

  • User Experience 

When choosing a smart contract platform for your dApp, you want one that will make it easy for users to interact with the application easily. Some platforms require users to not only create an account but also hold a specific number of the underlying token. For dApp users who are already familiar with blockchain technology, these requirements may not be a problem. But for the average user, such requirements are an entry barrier. The idea here is to choose a platform with fewer technical requirements in order to attract a wide range of users. 

Best performing smart contract platforms.

1. Ethereum

Ethereum is one of the most popular smart contract platforms that allow developers to build decentralized apps through its Ether or ERC-20 tokens. The platform is powered by the Ethereum Virtual Machine (EVM), which is a software that executes all smart contracts. The platform functionality is further enhanced by its proprietary smart contract coding language, Solidity. This makes it easy for developers to not only set up contracts but also build blockchain apps. 

What makes Ethereum even better is that it has clearly published rules on how to develop smart contracts on the platform. This has made it the most preferred smart contract platform by reputable developers and even by a sizable number of fortune 500 companies. 

On the downside, however, Ethereum is vulnerable to security threats and bugs in its code. The platform has been quick to respond to these issues by designing new token iterations. But perhaps the biggest concern is the platform’s growing number of users. While this number has contributed to its large market cap, developers worry that it may work against the platform by slowing down the processing speed of contracts. 

2. EOS

EOS is gradually winning the attention of the crypto community thanks to its near-zero transaction fees topped by the ability to process numerous transactions within a second. To achieve this, the platform works on an ownership model whereby you are entitled to resources proportional to your stake. This also means that your total computational power is equivalent to the number of tokens you hold. The higher the number of tokens, the higher the computational power, translating to fast transaction speed. 

Contracts on the EOS platform are coded in the C++ language, which helps improve scalability. The contracts are then implemented into the blockchain in the form of a pre-compiled coding language known as WebAssembly (WASM), which promotes faster execution of contracts. 

Given its architecture and functionality, EOS is suited for building industry scale dApps. If you were to build such applications on a platform such as Ethereum, running it would be overly expensive owing to the transaction fees charged on each function. 

3. NEM

NEM is both a peer-to-peer cryptocurrency and a smart contract platform. It uses Java programming language, which makes it popular among many users as it is the most widely used language. 

The platform mainly focuses on scalability and security, as evident from its recent updates. The platform can handle about 100 transactions in a second, which is much higher than Ethereum, which only processes a maximum of 15 transactions per second.  

The only drawback of using NEM is that it employs smart contracts off the blockchain making it less decentralized. However, the platform offers better security, easier updates, and fast execution speed as a consolation prize. 

4. NEO

NEO is a relatively new smart contract platform based in China. The platform uses a Proof-of-Stake consensus mechanism alongside the Byzantine Fault Tolerance algorithm – which uses less computing power, making the platform more affordable than Ethereum. 

In terms of user-friendliness, NEO scores highly owing to its ability to execute contracts written in any programming language. So, a developer isn’t limited to writing contracts in one specific language, as is the case with other platforms. 

5. Stellar

For simple, smart contracts such as ICOs, Stellar is the ideal platform to use. It may not be as straightforward as NEM, but it’s more user-friendly than Ethereum. 

The platform has stood the test of time having been one of the oldest platforms in the industry designed to facilitate low-cost remittance transactions across borders. Its future was further cemented when the platform partnered with IBM and KlickEx, which have also contributed to its improved infrastructure. 

Stellar smart contracts can be written in all major programming languages, including those that the community provides an API for. The contracts are interconnected and executed using various constraints such as batching, multi-signatures, sequence, and time bounds. 

Conclusion

The success of your decentralized app depends largely on the platform it’s built on. While the above smart contract platforms are among the best in the market, your ultimate choice of a platform depends on the app you intend to build. Some platforms prioritize security over speed, so make sure the platform you choose is aligned to your goals. 

Categories
Cryptocurrencies

Blockchain Crypto Wallet Review: How Safe Is Blockchin Wallet?

On the Blockchain.com website, this wallet is described as the “Safest and Most Popular for Investing and Storing Cryptocurrencies.” Launched in 2011, Blockchain wallet has stood the test of time and gained a solid reputation as one of the safest crypto wallets available today. According to their website, over $200 billion has been transacted through 48 million+ Blockchain wallets since its establishment. 

On the Blockchain.com website, this wallet is described as the “Safest and Most Popular for Investing and Storing Cryptocurrencies.” Launched in 2011, Blockchain wallet has stood the test of time and gained a solid reputation as one of the safest crypto wallets available today. According to their website, over $200 billion has been transacted through 48 million+ Blockchain wallets since its establishment. 

On the Blockchain.com website, this wallet is described as the “Safest and Most Popular for Investing and Storing Cryptocurrencies.” Launched in 2011, Blockchain wallet has stood the test of time and gained a solid reputation as one of the safest crypto wallets available today. According to their website, over $200 billion has been transacted through 48 million+ Blockchain wallets since its establishment. 

A closer look into the wallet app, and you can narrow down to the three biggest factors that continue to draw in Blockchain wallet users. These include its dedication to the security of the wallet, its resourcefulness about different coins and blockchains, and its ease of use.

In this Blockchain wallet review, we dig deeper into its key operational and security features, its pros and cons as well as ease of use.

Key Features:

Multi-platform: The blockchain wallet is available in both mobile and desktop versions. These include Android and iOS mobile app versions, and also supports all the popular desktop operating systems.

Inbuilt exchange: Blockchain wallet has also partnered with some of the most popular crypto exchanges like Shapeshift, to provide an in-exchange. Here, you can swap, buy, and sell cryptos without having to transfer currencies in and out of the wallet.

Real-time access to crypto markets: The crypto wallet app has also been hailed for its inventiveness, especially when it comes to providing the most attractive crypto market experience. In addition to the in-app crypto exchange provided here, Blockchain wallet will also provide you with real-time access to the global cryptocurrency market.

Resource-based: Blockchain app will also expose you to a wide range of market resources. These include the historical data and statistical information about a particular coin or the Blockchain that helps you make informed buy/sell decisions.

Security features:

Double password: When installing the blockchain wallet, and virtually any other crypto wallet, you will be required to set a four-digit security pin. In addition to the main passcode, the Blockchain wallet allows you to create yet another password required for authorizing crypto transactions.

Biometrics and 2FA: The blockchain crypto wallet app will also support the more innovative biometric security features for smartphone devices. You can, therefore, chose to reinforce the security passcode with a fingerprint or Face ID security feature. Alternatively, use your phone number to activate the two-factor authorization.

Non-custodial: Blockchain wallet is non-custodial and will not keep any of your private keys within its servers. These will be under your control as they are stored in your device.

Hierarchical deterministic: The Blockchain wallet is also hierarchically deterministic, making it possible for you to shake off trackers, and guarantee a level of privacy when crypto trading by creating new wallet addresses for each transaction.

Open-sourced code: The Blockchain wallet code is also open-sourced. It has, over the years, been vetted and audited by different professionals, who have helped identify and seal possible wallet loopholes.

Built-in security center: Blockchain Wallet employs a three-tier security feature that the user can activate at a time.

Level 1: This is specially designed to help you maintain control of your wallet and quickly recover it, if lost, by verifying your email address, coming up with a password hint, and generating the 12 words recovery seed.

Level 2: Designed to keep others from gaining access to your account and involves verifying your mobile number and activating the two-step authorization protocol.

Level 3: Designed to keep away preys by blocking Tor IP Addresses and preventing Tor Network users – that has, for the longest time, been a favorite for hackers – from contacting/accessing your account.

Ease of use:

Blockchain wallet, despite being a feature-rich platform and having some of the stringent security features, maintains a rather simplistic user interface. It is easy to interact with and use, for both beginners and crypto veterans.

Registering a crypto account on Blockchain is also easy, and sending or receiving cash to the crypto wallet app quite straightforward.

The app is also multilingual, supporting over 25 international languages. More

Currencies and countries supported

Blockchain wallet was initially designed to serve as a bitcoin-only wallet and only recently started supporting Ethereum, Bitcoin Cash, and Stellar cryptocurrencies, and the US Digital stable coin.

Though created by a Luxembourg based Fintech Company, the Blockchain Wallet has torn international borders to establish a presence in over 150 countries across the world.

Blockchain crypto wallet cost and fees

Downloading and installing Blockchain crypto wallet apps is free. And so is storing your digital currencies here or interacting with some of its security and operational features.

Crypto transactions that involve transferring cryptocurrencies in and out of the wallet, as well as exchanging one digital coin for another within its in-app exchange, attract variable fees. These are hugely dependent on the transaction volume and the speed with which you would like the transaction confirmed. The faster the transaction confirmation speed, the higher the fees.

Customer support

Blockchain wallet maintains an elaborate FAQ section of its website, which addresses common queries about the app’s security and operational features, or the broad crypto markets.

The company also maintains a highly responsive and multilingual support team that you can access via email or on their different social media platforms.

Blockchain Wallet doesn’t have real-time customer support service, often accessed via telephone or a live chat feature. 

Setting up the Blockchain crypto wallet

How to create a blockchain wallet:

Step 1: Head over to the Blockchain.com website and click on the “Create Wallet” icon. Alternatively, download the Blockchain Wallet mobile app from the Play Store or App Store and install it.

Step 2: On the registration window, enter a valid email address and create a super-strong password, then agree to the terms and conditions and click on ‘Continue.’

Step 3: You will need to verify your email address as it serves as your blockchain Wallet’s username.

Step 4: Upon email verification, you will be presented with your wallet address. Write It Down.

Step 5: Your wallet is now set, and you can start buying and selling cryptocurrencies.

How to receive cryptocurrencies into your Blockchain wallet:

Step 1: Log in to your Blockchain wallet and on the user dashboard, click ‘Request.’

Step 2: Click on the cryptocurrency you wish to receive, this will pop up the wallet address and QR Codes.

Step 3: Copy the address or the QR code and send it to the person/entity from whom you wish to receive digital currencies.

How to send cryptos into your Blockchain wallet:

Step 1: Log in to the Blockchain Wallet, and on the user dashboard, click ‘Send.’

Step 2: Choose the currency you wish to send, enter the recipient’s wallet address and transfer amount.

Step 3: The wallet will show you the totals plus transaction fees. Confirm these details and if possible, adjust the fees accordingly, to reflect the speed with which you would like the transaction processed.

Step 4: Click ‘Continue’ to complete the transaction.

Blockchain crypto wallet pros and cons:

Pros:

  • Blockchain wallet has some of the most advanced security features, from biometrics to 2FA and IP blocking.
  • The wallet also has highly advanced trading features that include real-time monitoring of the global crypto markets, in-app exchanges, and access to blockchain/cryptocurrency historical data.
  • It is a hierarchically deterministic wallet that is dedicated to preserving the user’s online privacy.
  • You don’t have to leave the wallet to exchange or swap your crypto with another or stable coins.
  • It hosts a very friendly user-interface that is easy to navigate for both crypto beginners and veterans.

Cons:

  • Blockchain wallet is a hot wallet and therefore more susceptible to online security breaches.
  • Most of its account security features are tied to identity verification, which makes it impossible to trade or hold coins anonymously on the wallet.
  • Despite the advancements, it doesn’t support fiat-to-crypto transactions.

Comparing Blockchain Crypto wallet with other cryptocurrency wallets:

Comparing Blockchain wallet with eToro

Blockchain Wallet and eToro have similar features in that you don’t have to leave the wallet to exchange or swap cryptos. They are quite insistent on solid security features around the trading account, and have established presence in every part of the world. eToro, however, carries the day when it to the number of supported currencies, the platform’s registration and regulation, and support for both fiat and cryptocurrency transactions. Blockchain Wallet.

Verdict – is Blockchain wallet safe?

Despite the fact that Blockchain Wallet is a hot crypto vault, we still consider it one of the safest cryptocurrency wallets around. It has introduced more security safeguards against unauthorized access to your account than any other hot wallet. These, plus the fact that their wallet is feature-rich, makes it a good choice for traders and investors looking for a balance between security and ease of use. These make it a good choice for traders and investors looking for a balance between security and easy to use crypto-wallets.   

 

Categories
Cryptocurrencies

Coinomi Crypto Wallet Review: Is Coinomi The Safest Wallet?

Coinomi is a multicurrency, feature-rich, and security-oriented cryptocurrency wallet app. It was launched in 2014 and has, over the years, gained undergone significant security and operational improvements. These have seen it attract a massive global membership and an unrivaled reputation. On the Coinomi website, the wallet is referred to as the ‘Popular choice’ that’s ‘Trusted by Millions of Users.’

Coinomi is a multicurrency, feature-rich, and security-oriented cryptocurrency wallet app. It was launched in 2014 and has, over the years, gained undergone significant security and operational improvements. These have seen it attract a massive global membership and an unrivaled reputation. On the Coinomi website, the wallet is referred to as the ‘Popular choice’ that’s ‘Trusted by Millions of Users.’

Coinomi is a multicurrency, feature-rich, and security-oriented cryptocurrency wallet app. It was launched in 2014 and has, over the years, undergone significant security and operational improvements. These have seen it attract a massive global membership and an unrivaled reputation. On the Coinomi website, the wallet is referred to as the ‘Popular choice’ that’s ‘Trusted by Millions of Users.’

The site further lists three of its key selling points: Its support for the “Broadest Range of Crypto,” the “Highest Level of Trust,” and the “Most Versatile App.” These claims are also affirmed on the Coinomi Wallet subreddit, where the company states that none of their “phone-based wallets have previously been hacked or otherwise compromised.”

But how true are these bold claims? Is Coinomi truly the safest crypto wallet app?

We sought to answer these by taking an in-depth look at Coinomi. We have evaluated its operational and security features, fees, supported currencies, and comparing it with equally reputable crypto wallets. Here are our findings:

Key Features:

Multiplatform: Coinomi started out as an Android crypto wallet app. Soon after, the iOS app was developed. In 2019, the Coinomi desktop app, compatible with Windows, macOS, and Linux operating systems, was launched.

Inbuilt exchange: Coinomi wallet partners with some of the leading exchanges to provide its members with an all-round in-app exchange. Key among them are Changelly and several other DEXs that facilitate crypto-to-crypto exchanges at the most affordable rates.

Buy with a card via Simplex: In these in-app exchanges, you can buy crypto and pay directly using your credit or debit cards. The move is made possible by the integration of the wallet with the Simplex platform that facilitates fiat to crypto conversions.

DApps browser: Coinomi integrates seamlessly with some DApp browser allowing Coinomi app members to access some of the most popular decentralized apps and Web3 support without leaving the cryptocurrency wallet.

Cold staking: Coinomi wallet not only helps you store your cryptocurrencies securely for a long time, but also has a cold staking option that allows you to stake the coins in your wallet when offline and get rewarded. Investors boost your earnings on qualifying cryptocoins as one can stake their digital assets while waiting for their value to rise.

Convert coins to gift cards: In an industry first, Coinomi, in partnership with Bidali, will let you convert your digital coins into gift cards redeemable at your favorite shops.

Security features:

Password: Like any other crypto wallet app, Coinomi has the password as the first line of defense. You get to set it up during account installation, and you will need it every time you want to login to Coinomi.

Seed phrase backup: Upon creating a Coinomi wallet, you will be provided with 12 words recovery seed. This comes in handy if you ever forget your password or lose the phone or computer hosting your Coinomi wallet. Write this seed down and keep it safe.

Data encryption: The data stored in your Coinomi wallet is secured with a strong password and is also highly encrypted. Coinomi uses cryptography to encrypt this data and ensure it never leaves your wallet.

Non-custodial: Coinomi is also a non-custodial wallet and will, therefore, not store your private keys on its servers. These are under your full control and are only stored within the app with the option of writing them down on paper.

IP anonymization: To further boost user privacy, Coinomi uses IP anonymization. This randomizes your IP every time you conduct a transaction making it impossible for hackers and trackers to link different pieces of information and trace the transactions back to your wallet.

Hierarchic deterministic: The hierarchical deterministic aspect of Coinomi implies that your wallet generates a new address for each transaction. This further boosts your privacy and makes it difficult to link these transactions back to you and your wallet.

Ease of use:

The Coinomi wallet employs highly advanced and innovative technologies that allow for the creation of a sophisticated platform while keeping its dashboard neat and easy to use. The user dashboard is also customizable to some extent, with dark and light modes.

The Coinomi app is also multilingual and has been translated into more than 25 international languages, including English, French, Russian, Chinese, Italian, German, Spanish, and more.

Currencies and countries supported

Coinomi supports more cryptocurrencies, tokens, and collectibles than any other crypto wallet app and even some hardware wallets. These include 1770+ crypto coins, tokens, and stable coins, and over 125 blockchains.

Other tokens and collectibles supported on the platform include all ERC 20 components, Omni Layer, BEP-2, NEM Mosaics, and TRC 10 collectibles. Additionally, access to the DApps browser and the EOS Ecosystems allows Coinomi wallet holders to create its own tokens.

Coinomi crypto wallet cost and fees

According to the Coinomi, the website and all the transactions carried here are free. Coinomi doesn’t charge you to install and use their wallet and integrated features.

However, you will have to pay a competitive fee to the different network miners for verifying and confirming your transactions. How much you pay to buy, sell, and exchange crypto-to-crypto, therefore, depends on the networks, the transaction volume, and confirmation speeds.

This means that the transaction fees are dynamic and that you can choose to pay a higher than the standard fee to have your transaction given preference and confirmed speedily. All these fees go to the network miners and not the wallet developers.

Customer support

Coinomi maintains a comprehensive customer support department. It starts with an elaborate FAQ section on the company website. Other queries can also be pushed to the support team available 24/7 by raising a ticket or contacting them via such social media handles as Telegram, Twitter, and Reddit.

Setting up the Coinomi crypto wallet

How to install the Coinomi crypto wallet:

Step 1: Start by downloading and installing the Coinomi Wallet app from the App Store or Google Play Store.

Step 2: Click ‘Create New Wallet.’

Step 3: On the next window will appear a string of recovery sees words. Write them down in the order in which they appear and store it safely.

Step 4: The next window prompts you to set up a strong multi-character password of at least eight digits for your wallet.

Step 5: The Coinomi wallet doesn’t have default wallet addresses but prompts you to select the coins you wish to use from a dropdown list and before creating associated addresses instantaneously.

Step 6:  Read through the disclaimer and terms and conditions and agree to activate the app.

Step 7: The wallet then directs you to the user dashboard, and you are now set to start buying, selling, and swapping cryptos using Coinomi.

How to receive cryptocurrencies into your Coinomi wallet:

Step 1: Launch the Coinomi wallet user dashboard and tap the menu icon.

Step 2: From the dropdown list, click on the cryptocurrency you wish to receive to get its wallet address and QR code.

Step 3: Copy the address or the code.

Step 4: Send it to the individual, sending you coins, and wait for the balance to reflect on your wallet.

How to send cryptos into your Coinomi wallet:

Step 1: Launch the Coinomi wallet user dashboard and tap the menu icon on the left corner.

Step 2: From the dropdown menu, select the cryptocurrency you wish to send, and click on the send icon

Step 3: On the ‘Pay To’ section, enter the recipient’s wallet address and chose to scan QR code, and on the ‘Amount’ section enter the number of coins you wish to send

Step 4: Confirm that the wallet address and the amounts to be sent are correct before hitting send.

Coinomi crypto wallet pros and cons:

Pros:

  • The crypto wallet employs highly advanced security features, including Hierarchical deterministic wallets and IP anonymization.
  • The wallet has integrated shapeshift, Changelly, and other DEXs to facilitate in-app exchanges.
  • The transaction processing fees are highly competitive and open to customization for speedy confirmation.
  • The app supports the widest range of cryptocurrencies, collectibles, and tokens.
  • The app has a solid reputation with no serious customer complaints and enjoys a stellar 4.6/5 star rating on the App Store after over 16,000+ user reviews.

Cons:

  • The biggest threat to Coinomi is the fact that it is not open-sourced.
  • The crypto wallet is also not as regulated as similar projects like Coinbase or eToro.
  • It is a pure crypto-to-crypto network, and you will, therefore, have to use third-party apps like Simplex if you wish to buy crypto using fiat currency.

Comparing Coinomi Crypto wallet with other cryptocurrency wallets:

Comparing Coinomi wallet with Coinbase and eToro

When paired against similar hot wallets like Coinbase and eToro, Coinomi carries the day. Specifically, when it comes to the use of a number of supported currencies, security features, and competitive yet customized crypto transaction fees. We nonetheless believe that eToro and Coinbase have more versatile platforms as they support fiat to crypto transactions and don’t necessarily rely on third-party exchanges.

Verdict – is the Coinomi wallet safe?

Yes. The Coinomi wallet has embraced some of the most innovative security features. These include the use of passwords and recovery seeds to prevent unauthorized access to your wallet, and the possibility of private keys recovery if you lose the phone or forget the password. Others are IP Anonymization and Hierarchical Deterministic features that mask your online activity to keep off trackers and preserve your online privacy. These added to the fact that Coinomi wallets host the widest range of coins, and its versatility makes it most suitable for the highly diversified trader looking for both a highly secure and low fee crypto wallet.

Categories
Cryptocurrencies

Atomic Crypto Wallet Review: How Safe Is The Atomic Wallet?

Atomic wallet is a decentralized, multi-currency, and feature-rich cryptocurrency vault where crypto enthusiasts can store and exchange digital currencies. It is a multi-platform hot wallet that launched in 2017 under the stewardship of Konstantin Gladych – Changelly co-founder –and Charlie Shrem​ – an American entrepreneur cum Bitcoin advocate and founding member of the Bitcoin Foundation.

Atomic wallet is a decentralized, multi-currency, and feature-rich cryptocurrency vault where crypto enthusiasts can store and exchange digital currencies. It is a multi-platform hot wallet that launched in 2017 under the stewardship of Konstantin Gladych – Changelly co-founder –and Charlie Shrem​ – an American entrepreneur cum Bitcoin advocate and founding member of the Bitcoin Foundation.

Atomic wallet is a decentralized, multi-currency, and feature-rich cryptocurrency vault where crypto enthusiasts can store and exchange digital currencies. It is a multi-platform hot wallet that launched in 2017 under the stewardship of Konstantin Gladych – Changelly co-founder –and Charlie Shrem​ – an American entrepreneur cum Bitcoin advocate and founding member of the Bitcoin Foundation.

It has, however, taken more than just the reputation and rich industry experience of crypto app founders to create an online buzz around the wallet. Much of this is attributable to its feature-rich platform that allows for crypto exchange, swapping, and staking currencies. Equally important was its commitment to crypto privacy and user anonymity.

In this Atomic wallet review, we will be looking to understand if it indeed is one of the safest crypto vaults around. We will also explore some of the wallet’s essential features, look at its pros and cons, vet its cost and transaction fees before comparing it with equally reputable crypto vaults.

Key Features:

Multi-platform: Atomic wallet is available as both a mobile app and a desktop app. The mobile app is available in both Android and iOS versions, while the desktop version supports all the popular operating systems, including Windows, MacOS, Linux, Ubuntu, Debian, and Fedora.

Inbuilt exchange: Atomic Wallet has an in-built exchange to facilitate both peer-to-peer crypto exchanges as well as in-app Crypto swaps. To achieve this, the app has partnered with some of the leading Decentralized Exchanges like Binance, Changelly, and Shapeshift.

Cold staking: In addition to Crypto investing and in-app trading, Atomic Wallet exposes you to the lucrative coin staking. Investors in supported coins like Tezos, Vechain, Pundi, and NEO GAS can now commit their coins safely to validators and get rewards.

Portfolio management: Atomic wallet also features the price tracking and portfolio management tool that allows you to monitor the value of your Crypto investments in real-time and on a unified interface.

Educational and trading resources: The crypto wallet app has also partnered with several crypto market data providers like CoinMarketCap, to help you monitor coin prices in real-time. It also has an elaborate crypto education and a news section that keeps you upbeat with the current happenings in the crypto industry.

Supports card purchases: Atomic wallet in collaboration with Simplex ensures that you get to buy cryptocurrencies using credit and debit cards while safeguarding your right to privacy and living true to its commitment of anonymous crypto trading.

Security features:

Password: When creating a user account on either the mobile or desktop wallet app, you will be required to create a strong multi-character password for your account.

Recovery seed backup: Upon registering an account with the Atomic wallet, you will be presented with 12 words recovery seed. You will need this to recover your wallet and private keys therein if you ever lose the phone or computer hosting it or forget the account password.

Non-custodial wallet: Atomic wallets are non-custodial, and the company servers will, therefore, not store the private keys on your behalf. You will always have full custody and control of your private keys, as they will be stored within your device.

Anonymous trading: Unlike most other Crypto wallet apps, Atomic wallet won’t ask you for such sensitive personal information as your name or email address. Neither will it subject you to the KYC and AML verification checks. The app was specially designed to support anonymous Crypto storage and trading.

AES Symmetric encryption: Any data, including the private keys stored in your wallet, will also be highly encrypted using the AES Symmetric encryption technology to prevent unauthorized access to your digital assets.

Ease of use:

Atomic wallet is also developed using highly advanced technology that makes it possible to maintain a highly sophisticated yet easy to use platform. Navigating through the Crypto wallet app is easy, and so is carrying out basic functions like buying and selling Crypto or monitoring your investment portfolio.

The apps can also be highly customized, allowing to change themes, text and icon sizes, and color. Additionally, both the app and website are multilingual, supporting English, Chinese, Spanish, Dutch, French, Russian, Turkish, Portuguese, Japanese, and German languages.

Currencies and countries supported

Atomic Crypto wallet app is available to virtually any cryptocurrency enthusiast in the world. It doesn’t have international membership restrictions or limitations to the use of virtual networks meaning that even individuals in countries with strict Crypto policies can access the wallet using a VPN.

Currently, Atomic Crypto wallet supports more than 300 cryptocurrencies and individual tokens as well as all the entire ERC 20 tokens.

Atomic crypto wallet cost and fees

You wouldn’t be charged for downloading, installing, and using Atomic wallet and its integrated features. Only the crypto exchange and swapping transactions have minimal charges that go to the network validators/miners and not the atomic wallet developers.

These transaction fees by Crypto exchanges are highly variable and dependent on the transaction volumes and the blockchain network used. Credit card purchases via the Simplex platform; on the other hand, carry a fixed charge of 2% the transaction amount.

Most notably, Atomic crypto wallet app has no limit to the number of coins you buy, sell, or hold in your wallet.

Customer support

Atomic cryptocurrency wallet has a responsive customer support team. For faster response, often a few hours, use the live chat option on the wallet app or their website. Alternatively, open a support ticket, send an email or contact them on their social media platforms like Telegram, Twitter, Reddit, or Facebook.

The customer support team is complemented by an elaborate FAQ section on the Atomic wallet website that features explanatory videos detailing how to interact with the app.

Setting up the Atomic crypto wallet

How to install the Atomic crypto wallet:

Step 1: Start by downloading the crypto wallet app on Google Play, App Store, or on the Atomic wallet website.

Step 2: Click ‘Open Wallet’ to create a new wallet.

Step 3: Create and memorize a super-strong password to protect your trader account.

Step 4: The app will now auto-generate 12 words recovery seed. Write it down on a piece of paper and store it in a secure place. You will need this to recover your private keys should you forget your password or lose the phone.

Step 5: Click next to your account’s user dashboard, and you are set to start buying, selling, swapping, and staking over 300 digital currencies.

How to receive cryptocurrencies into your Atomic wallet:

Step 1: Launch the Atomic wallet user dashboard.

Step 2: Click on the cryptocurrency you wish to receive to access its wallet address.

Step 3: Copy the address and send it to the person sending you cryptos and wait for the funds to reflect in the wallet.

How to send cryptos into your Atomic wallet:

Step 1: Lunch the Atomic crypto wallet user dashboard.

Step 2: Click on the cryptocurrency you would like to transfer out and chose the send option.

Step 3: On the popup window, enter the recipient’s wallet address and the number of coins you wish to send.

Step 4: Confirm that the details are correct, enter your account password, and hit send.

Atomic crypto wallet pros and cons:

Pros:

  • Atomic wallet embraces a host of security features to protect your privacy, like Passwords and private keys; plus, the wallet is hierarchically deterministic.
  • Supports anonymous trading and won’t ask or keep your personal information on private keys.
  • Supports a relatively large and constantly growing list of cryptocurrencies, tokens, and collectibles.
  • Hosts several advanced features, including an inbuilt exchange, real-time crypto market access, and a crypto news section.
  • It supports credit card purchases conducted through the Simplex platform.

Cons:

  • One may consider the fixed 2% fee charged on credit card purchases punitive.
  • The Atomic wallet code isn’t open sourced, raising questions about the developer’s transparency in their security claims.
  • The Atomic swap feature will only support the swap of three cryptocurrency pairs.
  • The app doesn’t support biometrics or the 2FA features making susceptible to internet security threats.

Comparing Atomic Crypto wallet with other cryptocurrency wallets:

Comparing Atomic wallet with Coinomi

Atomic and Coinomi are both hot wallet apps with a shared commitment for account security, easy to use wallet platforms, and integrating as many features into the app as possible. But Coinomi takes this a step further and makes their wallet supportive of as many cryptocurrencies as possible (17000+) and introduces more security measures like IP anonymization. In addition to an inbuilt exchange, Coinomi is also supportive of the DApps browser and the conversion of cryptos into redeemable gift cards.

Verdict – is Atomic wallet safe?

While Atomic crypto wallet lives to the true meaning of anonymous crypto trading and has never been hacked, we still consider its commitment to the wallet safety average. You must note that while it has taken significant strides in coming up with HD wallets and passwords and the backup seed, none of these protects your wallet from remote access breaches. The wallet would, therefore, only be suitable for low volume active traders and not long-term investors. 

Categories
Cryptocurrencies

CoolWallet S Crypto wallet review: How cool is CoolWallet S?

CoolWallet S is an innovative crypto vault by CoolBit X that blends the effectiveness of both the hardware and hot wallets to come up with the most secure hybrid crypto wallet. It has both the features of hardware and hot wallet in that it features a portable hardware component in the form of a card that’s then controlled via a crypto app. Each has its individual security measures and won’t function without the other.

CoolWallet S is an innovative crypto vault by CoolBit X that blends the effectiveness of both the hardware and hot wallets to come up with the most secure hybrid crypto wallet. It has both the features of hardware and hot wallet in that it features a portable hardware component in the form of a card that’s then controlled via a crypto app. Each has its individual security measures and won’t function without the other.

CoolWallet S is an innovative crypto vault by CoolBit X that blends the effectiveness of both the hardware and hot wallets to come up with the most secure hybrid crypto wallet. It has both the features of hardware and hot wallet in that it features a portable hardware component in the form of a card that’s then controlled via a crypto app. Each has its individual security measures and won’t function without the other.

The wallet offers the best of both worlds. It differs from the rest of the hardware wallets in that it uses a wireless connection to communicate with an app. And while most other hardware devices are USB-like, CoolWallet S is designed to imitate the exact dimensions, durability, and portability of a credit card. It is also waterproof, temperature resistant, and bendable.

In this CoolWallet S review, we take a deeper look into its key operational and security features, its pros and cons, and ease of use.

Key Features:

Mobile friendly: Most hardware wallets available today were designed with the desktop app, chrome extension, or a web trader in mind. They connect to a computer via a USB cable. CoolWallet S, on the other hand, is specially designed to work alongside iOS and Android-based apps.

Durable: The CoolWallet S card is made using the credit and debit card technology to make it extremely durable.

Sleek design: The CoolWallet S card has a cool design as it features an on-card screen and an authorization button.

Button: Like most USB-like hardware wallets, CoolWallet S features an on-card button used to authorize transactions or for navigating the card screen.

Inbuilt exchange: The CoolWallet S features a Changelly API that serves as its internal exchange. Using the exchange, CoolWallet S users can swap different cryptos and tokens without leaving the wallet.

Wallet connect feature: The portable wallet uses Bluetooth of the Near Field Communication features to connect wirelessly with the smartphone hosting the ColWallet S app. The connection is always shown on the card screen by the Bluetooth connection indicator, and you can use it with up to three devices.

Innovative UI: CoolWallet S presents you with two easy to use interfaces on the card and on the smartphone app. You can use to either check the balances of your digital assets, create new wallet addresses, or view your transaction history.

Security features:

Pass-code: When personalizing the card and registering with the app, you will be required to create a strong pass-code. You will need it every time you want to log into your app or card.

Biometrics security features: The app is further fortified with biometric security checks like the fingerprint and face ID. Unlike most crypto wallet apps that will use either the password or the biometric, CoolWallet S employs the 2+1 authentication features that allow you to use both the password and biometric checks to access your account.

AES 256 encrypted Bluetooth connection: The card is detached from its associated app and will only connect via a Bluetooth connection. The connection is further secured with AES-256 encryption to eliminate possible compromise of wallet data.

Seed phrase available: Like in the case of any other Crypto wallet app, CoolWallet S also has 12 words seed backup that you can use to recover your private keys in you forgot the password or if the app or card were compromised.

Hierarchically deterministic: The wallet is hierarchically deterministic, allowing you to create multiple wallet addresses that help throw off trackers.

Ease of use:

Apart from both the app and card having very friendly user interfaces, the wallet also designed with the global crypto community in mind. For instance, instead of using English words for passwords and recovery seed phrases, CoolWallet S uses numerals to accommodate the non-English speaking crypto enthusiasts.

Setting an account with CoolWallet S is also easy and straightforward. You also don’t need professional help to send/receive coins into your wallet. Plus, its simplistic app design makes exchanging currencies and tracking your crypto assets beginner-friendly.

Currencies and countries supported

CoolWallet S supports 30+ major cryptocurrencies, including Bitcoin, Ripple, Ethereum, Bitcoin Cash, Litecoin, Dash, and ZEN Cash and USDT. It also supports all ERC 20 tokens and is available in 100+ countries across the world.

CoolWallet S crypto wallet cost and fees

The CoolWallet S costs $99 or $159 when buying a pair. This gets you the CoolWallet S card, its charging dock, and a special paper where you can note down the recovery seed.

You won’t be charged for preserving your digital assets on this wallet, but sending and swapping tokens and coins on the integrated Changelly platforms attracts variable transaction fees. These are dependent on the amounts traded and the blockchain network.

Customer support

CoolWallet S has a highly responsive support team. This can be accessed by opening a support ticket on the website, via email, by contacting them via the live chat or on their different social media platforms. Most of the queries will be satisfactorily answered within two hours.

There, however, is no phone support.

Setting up the CoolWallet S crypto wallet

How to install the CoolWallet S crypto wallet:

Step 1: Start by downloading and installing the CoolWallet S app for your iOS or Android phone.

Step 2: Press the button on the card to activate it and turn on Bluetooth for your phone.

Step 3: The app will soon show a string of letters and numbers representing your wallet address. Click connect to pair.

Step 4: On the app, select ‘Create’ to start the wallet creation process.

Step 5: The app will then ask you to choose the length of your recovery seedeither12-, 18- or 24- words sets. (We advise you to use the on-card screen and not the app to select the seed set). Note the seed down on a piece of paper or save it as an image file.

Step 6: Verify that you have captured the right seed by answering a random seed query.

Step 7: Click the ‘Create a New Wallet’ option on the app to finish the setup process.

(You can now activate the biometric security features on the settings page of your app).

How to receive cryptocurrencies into your CoolWallet S:

Step 1: Log in to your CoolWallet S app and select Receive on the user dashboard.

Step 2: Click on the crypto/token you would like to receive (if not listed, add it automatically at the coin display tab on the settings page).

Step 3: Clicking on the cryptocurrency will display your wallet address and QR code.

Step 4: Copy either and send them to the individual/entity, sending you the coins.

How to send cryptos into your CoolWallet S:

Step 1: Log in to your CoolWallet S app and select Send on the user dashboard.

Step 2: On the pop-up menu, enter the recipient’s wallet address in the TO field and the number of coins you wish to send.

Step 3: Chose the cryptocurrency you wish to send.

Step 4: Review the transaction by confirming the amounts to send and the recipient’s wallet address. This tab will also display the transaction fee that you can modify based on the speed at which you would like to have the order confirmed.

Step 5: Press ‘Send.’

CoolWallet S crypto wallet pros and cons:

Pros:

  • The wallet embraces a multi-layered security protocol guaranteeing the absolute safety of your private keys.
  • CoolWallet S has a sleek design that isn’t just highly portable but also quite convenient.
  • Provides a one of a kind offline wireless storage for your digital assets.
  • It is easy to set up and use for crypto beginners due to its very friendly and simplistic user interface.
  • CoolWallet S hosts a number of important features that include the Changelly API that allows for swaps and in-app crypto exchanges.

Cons:

  • At $99, it is more expensive than equally reliable hardware crypto wallets like Trezor or Ledger Nano.
  • It supports a limited number of cryptocurrencies (less than a hundred) compared to other hardware wallets that support 1000+ coin and tokens.
  • The CoolWallet S technology isn’t open sourced and thus inadequately audited.
  • You will have to re-enter the seed words every time the app/card firmware is updated, which can be cumbersome.

Comparing CoolWallet S with other cryptocurrency wallets:

Comparing CoolWallet S with Ledger Nano S hardware wallet

CoolWallet S can be said to have employed more security measures to fortify both the app and card than Ledger Nano S hardware wallet. It is also more versatile as it features a larger on-card screen and probably easier wallet setup process. The Ledger Nano S hardware wallet, on the other, carries the day when it comes to the number of supported cryptocurrencies. It is also more affordable and even more reputable based on its developer’s exposure to the crypto world and by virtue of having been a pioneer hardware wallet.

Verdict – is CoolWallet S safe?

CoolWallet S is, without a doubt, one of the safest cryptocurrency wallets available today. It is also is one of the most versatile, given that you can use either the mobile app or the card-like hardware device to monitor your digital assets. And this makes it appealing to both the low-volume traders and high-volume investors alike. To enjoy these benefits, however, you will need to dig deeper into your pockets. 

Categories
Cryptocurrencies

What are Pegged Cryptocurrencies? 

The violent price swings witnessed in the crypto market is part of the reason why virtual currencies haven’t found favor in the public’s eye. While the volatility can result in quick gains, unexpected losses are also inevitable. This explains why digital currencies are more speculative investments than a store of value. It’s even harder for merchants to accept cryptocurrencies as payment due to their dynamic prices. 

The violent price swings witnessed in the crypto market is part of the reason why virtual currencies haven’t found favor in the public’s eye. While the volatility can result in quick gains, unexpected losses are also inevitable. This explains why digital currencies are more speculative investments than a store of value. It’s even harder for merchants to accept cryptocurrencies as payment due to their dynamic prices. 

The violent price swings witnessed in the crypto market is part of the reason why virtual currencies haven’t found favor in the public’s eye. While the volatility can result in quick gains, unexpected losses are also inevitable. This explains why digital currencies are more speculative investments than a store of value. It’s even harder for merchants to accept cryptocurrencies as payment due to their dynamic prices. 

However, the recent entry of pegged cryptocurrencies is proving to be a solution to the crypto market’s volatility. In fact, they have the potential to win more investors into the virtual currency space, making digital assets acceptable across the world. But what exactly is a pegged cryptocurrency? 

Pegged Cryptocurrency Overview 

Pegging is a financial concept whereby an unstable asset is tied to a more stable asset to mitigate volatility. 

Similarly, when a digital currency’s value is tied to that of some other medium of exchange, it is said to be pegged. Usually, the coin is tied to a stable fiat currency such as the US dollar, gold, or any other bank-issued currency. Tether is an ideal example of a pegged cryptocurrency whose value is tied to the US dollar. 

In addition to being an alternative store of value, pegged cryptocurrencies help compliment the typical cryptocurrency trading.

If, for instance, you made huge gains from trading volatile cryptocurrencies but fear that the gains might evaporate soon, you can safeguard your gains by trading them for Tether tokens, usually denoted as USDT. This way, even if the dollar loses its value, the price decline won’t be as huge as that experienced in the digital currency market. 

Also, in a bearish market, pegged cryptocurrencies can be used to increase the number of tokens/coins in your portfolio. This is especially true because a pegged currency’s value isn’t affected when the market dips. But since it’s still available in the crypto market and has not been exchanged into fiat currency, you can leverage on the dip by making more purchases to increase your coin/token holdings. 

How Crypto Pegging Works

Cryptocurrency developers wishing to peg their tokens to a stable asset must at all times have the actual asset in reserve as proof of pegging. This is to say that if a cryptocurrency is backed by gold or the US dollar, the project developers should have vast amounts of gold/dollars in vaults to guarantee the pegged value of their tokens. 

In the case of Tether, each token of the coin is tied to the value of one US dollar. Should the coin fail for some reason, investors can then go to developers to claim a refund that is proportional to the number of tokens that they held.

Benefits of Pegged Cryptocurrencies

There is more to pegged cryptocurrencies than just being an alternative hedge against market volatility. 

  • Improved Liquidity 

Compared to typical cryptocurrencies, pegged tokens can be liquidated easily and faster. This is especially true for coins pegged to a fiat currency. They serve as a liquidity vent through which other digital currencies can be swapped for more stable assets. 

  • Offer Affordable Remittance Transaction Cost

Sending remittances overseas is characterized by high transaction costs. If you are sending the funds in the form of digital currency, for instance, Bitcoin, the process is overly slow and sometimes expensive. It becomes even more expensive when you factor in the volatility of the coin, which may result in the recipient receiving less than the amount expected. At the same time, sending fiat currencies overseas has its own challenges, such as an amount limit which you can send at any given time, as well as accumulating transaction costs. 

Pegged cryptos, on the other hand, offer the best of both worlds. First, they are less affected by the market movements, which helps minimize transaction fees. Also, since they are virtual currencies by nature, they aren’t affected by remittance transfer limits.

As such, they can be transferred to various jurisdictions in an affordable process compared to money transfers. Once you consider the foreign exchange-swapping hurdles that plague fiat currency transfers, it becomes even clearer as to why pegged cryptocurrencies are the most viable option. 

Risks Associated with Pegged Cryptocurrencies

One of the biggest risks associated with pegged cryptocurrencies is investors can never be sure if a coin is backed up by real funds. For this reason, before investing in a pegged cryptocurrency, note that it is not enough for a developer to simply claim that their coin is pegged. They must be transparent with their reserves by providing physical proof that the backup funds are available. Ideally, the developers should be open to third-party audits of their financials to verify that indeed the coin is backed up by a stable medium of exchange. 

Also, the fact that a coin is backed up by physical funds stored in large amounts is a problem in itself. It means that the funds are prone to theft and can even disappear for some other reason, causing a decline in the token’s value. Such cases mainly affect gold-pegged cryptocurrencies. Therefore, investors should examine the credibility of who stores the gold of a particular coin and where it is housed. 

For coins pegged to a fiat currency, the government doesn’t take kindly to developers linking a product to the value of a central bank currency. To successfully peg their currency, the developers are required to obtain the necessary paperwork and license as well as maintain a public record of their holdings. So, be sure to check the whitepaper of a pegged crypto to ascertain whether it maintains compliance. 

At the same time, it is pretty hard to make profits from a pegged cryptocurrency. This is because the buying and selling price of the digital coin has the same value as that of the fiat currency. It’s probably the reason why developers fail to convince investors to store their assets in digital tokens instead of fiat currency. 

Conclusion

Unfortunately, there have been only a handful of successful pegged cryptocurrencies in the market. Nonetheless, it’s undeniable that they play a vital role in bridging the gap between the crypto-space and the traditional economy. With time, as more developers continue to launch pegged cryptos, their role will be appreciated and eventually bring in more investors in the market. 

Categories
Cryptocurrencies

How to Participate in the Bitcoin Revolution

Bitcoin is the world’s first and most successful cryptocurrency. A cryptocurrency is a  decentralized peer-to-peer and cryptographically secured digital currency. The currency went from obscure beginnings to become the most successful asset of the last decade. 

Bitcoin is the world’s first and most successful cryptocurrency. A cryptocurrency is a  decentralized peer-to-peer and cryptographically secured digital currency. The currency went from obscure beginnings to become the most successful asset of the last decade. 

Bitcoin is the world’s first and most successful cryptocurrency. A cryptocurrency is a  decentralized peer-to-peer and cryptographically secured digital currency. The currency went from obscure beginnings to become the most successful asset of the last decade. 

Bitcoin also brought with it blockchain, a technology that facilitates unalterable records, is decentralized, and is entirely transparent. These unique blockchain features are so groundbreaking that entire consortiums have been formed to advance it. 

Not only has it succeeded beyond expectation, but it has also received the endorsement of influential people from Sir Richard Branson, founder of the Virgin Group, to Bill Gates, founder of Microsoft, to Jack Dorsey, founder of Twitter, among other notable people. 

Participating in the Bitcoin Revolution

How can you participate in this powerful Bitcoin wave? Read on for ideas. 

i) Acquire Bitcoins

One of the ways to jump on the Bitcoin bandwagon is to own it – whether to HODL, trade, or whatever you choose. Right now, there are three ways to acquire Bitcoins.

  • Accept Bitcoin as Payment

This is one of the ways to get your hands on some Bitcoins. Often, this occurs through a merchant solution. Some popular Bitcoin payment processors include Bitpay, Coinbase, CoinGate, Spectrocoin, Coin payments, Coinify, and so on. 

Around the world, Bitcoin is becoming increasingly accepted for payments for goods and services. Heavyweights like Microsoft, travel industry giant Expedia, Wikimedia, restaurant franchise Subway, mobile industry behemoth AT&T are some of the big companies accepting Bitcoin. 

  • Mine Bitcoins

The concept of Bitcoin mining is baffling even to people who are familiar with the crypto space. The first thing to know is that you mine Bitcoin on the online Bitcoin network. In the beginning, anyone with an internet connection could mine Bitcoin. But as more miners joined the network, mining ‘difficulty’ increased, it necessitated the use of more powerful and specialized mining equipment. This equipment is known as ‘Application-specific Integrated Circuits’ (ASICs).

Miners mine Bitcoin by finding the right ‘hash’ – a string of random numbers mixed with alphabet. This hash unlocks the next block of transactions. The miner that finds or ‘solves’ the block is rewarded with bitcoins, and sometimes, a fraction of transaction fees. It takes an average of ten minutes between the discovery of new blocks. 

The number of block rewards is halved after every 210,000 blocks, and it takes place every four years. The next halving, which will take place in May 2020, will see the current block rewards of 12.5 halved to 6.25. 

A cheaper way to mine is to join a crypto mining pool. A mining pool combines the computing power of everyone involved, increasing the chances of finding blocks. Block rewards are then shared among the miners in accordance with the computing resources each has contributed. 

  • Buying Bitcoins

Bitcoin mining is not for the faint of heart. First, you need to invest in costly mining software. Then you will need to have the patience of a saint as you take highly calculated guesses at the hashes for blocks. 

If the rigors of Bitcoin mining are not your cup of tea, then purchasing Bitcoin might be more your speed. Today, you can purchase Bitcoin at any of the time-tested crypto exchanges like Coinbase, Huobi, Kraken, Poloniex, Bitstamp, BitFinex…the list is quite endless. 

For you to purchase Bitcoin, you’ll need to have a cryptocurrency wallet. This is a wallet that allows you to store private keys. Private keys prove your ownership of crypto funds, allowing you to send or spend them. Some wallets are designed to exclusively hold Bitcoin, while others allow you to hold Bitcoin and other cryptocurrencies. Some popular options include Trezor, Ledger Nano, Mycelium, and Exodus. 

ii) Provide Bitcoin Services

The Bitcoin ecosystem is like the sun; its enough for everyone. That means you can start offering any of several Bitcoin services. Don’t know how to get started? Read on. 

  • Wallet services:

Owning Bitcoin is not possible without owning a wallet. Every Bitcoin holder needs one. There are paper wallets, online or hardware wallets. Paper wallets allow you to store your private key in a paper via a wallet generator. Online wallets are connected to the internet, while hardware wallets, which resemble a flash disk, store private keys online.

Online wallets are susceptible to online vulnerabilities such as hacking and social engineering attacks like phishing, tailgating, water-holing, and so on. Offline wallets such as paper and hardware wallets are the safest approach to Bitcoin safety since they’re immune from online attacks, which actually happen quite often.

The point? Safer and more reliable Bitcoin wallet services will always be in demand. This is a viable area to explore for a Bitcoin business. 

  • Bitcoin Payment Processors

These are companies that facilitate businesses to accept Bitcoin as payment. Through their services, businesses can automate Bitcoin payments as securely and conveniently as possible. 

iii) Provide Ideas for People to Accept Bitcoin 

Many people know Bitcoin is awesome, but they’re not ready to jump into the bandwagon yet. That’s because either they think it’s too complex, or it’s out of reach for them, or they just don’t know much about it. If you can come up with a good way to make the currency more understood and accepted, you’re on to something. 

iv) Leverage Blockchain Technology

Blockchain, the technology behind Bitcoin, possesses some groundbreaking qualities such as immutability, transparency, and cryptographic security. These features make it a very attractive proposition for businesses that want to eliminate fraud, streamline processes, and achieve better security. Many businesses are rushing to get in on the blockchain action. 

This represents opportunities for entrepreneurs to provide blockchain services for organizations. Of course, blockchain applications need specialized skills. You can invest in this kind of skill and provide the service to organizations at a profit. 

Another way to leverage blockchain technology is to provide blockchain-based services such as money remittance, music royalties tracking, encryption systems, identity management solutions, and so on. 

v) Invest in Bitcoin

By investing in Bitcoin, you get a front-row seat in the Bitcoin show. Some people have become overnight millionaires by investing in Bitcoin. And it takes up the largest share of the cryptocurrency market. 

What makes the currency so attractive to investors? Well, for one, it was the first of them all. That comes with some allure. Also, it has a capped supply of 21 million coins. Already, 85% of these have already been mined. This controlled supply pushes up demand.

The other thing is the sheer volatility of Bitcoin. Just like other cryptocurrencies, Bitcoin experiences pretty wild price swings. Depending on your risk tolerance, these swings are either an opportunity for you to cash in or a very perilous proposition that should be avoided. 

Savvy investors profit off these price swings by buying when prices plummet and selling when they’re on a bull run. 

Categories
Cryptocurrencies

How Can Blockchain Help End Poverty? 

Blockchain has been lauded as an absolute game-changer that could improve society in so many ways. 

Blockchain has been lauded as an absolute game-changer that could improve society in so many ways. 

Blockchain has been lauded as an absolute game-changer that could improve society in so many ways. 

But there’s one area that could greatly benefit from the technology that has not received as much attention, and that is global poverty. 

According to the World Bank, about 750 million people somewhere in the world are living under the poverty line. Some of the factors contributing to this figure are the lack of access to banking facilities, lack of proper property documentation systems, and corruption.

Blockchain can help tackle poverty across the globe by doing what it does best: providing tamper-proof record-keeping models, promoting radical transparency, and being a decentralized platform that’s inclusive for all. 

Let’s explore the ways in which this could be a reality. 

Economic Identity

According to the World Bank, about 1.7 billion or the world’s population is unbanked or underbanked. This is due to these people lacking proper identification or not having a credit history. This renders them unqualified for opening a bank account. In turn, they can’t access loans to start a business or save up money to build wealth. This causes them to remain trapped in poverty. 

Blockchain can help solve this by providing a decentralized and immutable platform where people can properly document their identity. Blockchain-powered platforms in organizations and governments would help more people access financial services that would start them on the journey towards economic empowerment.

Property Rights

In many places around the world, especially in developing countries, there are no proper systems of tracking property rights, and where they exist, they’re either fractured or incomplete. Land registry systems are either unreliable or marred by corruption.

Yet owning property is one way to combat poverty. People can sell land and pay school fees or start a business. They can cultivate crops and participate in the economy. The lack of proper property registry keeps people stuck in poverty, as well as causing conflict. 

Blockchain can help solve this. Blockchain-based property documentation can help grant many of the world’s poor their first undeniable asset. Since blockchain records are immutable, documented property would be immune from fraud or manipulation. Several countries are already experimenting with blockchain-based land registries: including Bermuda, Ghana, India, Russia, Rwanda, and so on. 

Access to Money

One of the biggest hurdles to providing financial aid to the poor quickly and efficiently is the numerous steps involved in the banking process. This is even more so when borders and international regulations are in play. Add to this the administrative costs and banking fees, and a lot of the money ends up swallowed in the process. 

Blockchain can help solve this by providing a peer-to-peer framework where people can receive money as soon as it’s disbursed. No need for footing administrative labor costs, paying extra banking fees, or waiting for days for funds to reach individuals. This can prove even more useful in times of acute needs when money could practically help save lives. 

We’re already seeing this functionality in play. The United Nations tested a  cryptocurrency-based model of voucher-giving to Syrian refugees who could then redeem them for food items. About 10,000 people utilized the vouchers and got faster access to food relief, as opposed to if multiple international banking channels and procedures had had to be followed. 

Financial Inclusion

Exclusion from the world’s financial system is why millions remain impoverished. And this is partly because they’re unbanked. Banks themselves require a lot of money to set up. As such, building banks with the requisite infrastructure, especially in poor regions, is an expensive and often difficult endeavor. 

Blockchain eliminates the need for banks. All people need is a mobile phone with internet connectivity for them to access financial services and manage their finances. There is no need for complex infrastructures, bureaucratic procedures, hidden costs, or the corrupt interference of local authorities. 

Blockchain treats people the same way; it doesn’t recognize whether you’re a high-flying career banker in Manhattan or a poor farmer in Kazakhstan. It’s this indiscriminate and inclusive nature of the technology that could help lift many out of poverty. 

Creating Transparency and Reducing Corruption

Corruption is a disease that keeps people trapped in a vicious cycle of poverty. When public funds are stolen, people are denied basic services like healthcare, water, decent sanitary conditions, and so on. 

Blockchain is immutable, transparent, and secure, and it can help minimize the avenues for corruption. On a public blockchain, anyone can see the history of records and where the money is going. 

The immutability, i.e., the unalterable nature of blockchain records, means no one can manipulate records. As such, it would be impossible for corrupt officials to embezzle or redirect funds. Even if they attempted, the blockchain would show who did it, and when. 

Monetizing Microtransactions

Blockchain-based currencies can help assign value to items at smaller prices, making transactions cost-effective. People can purchase value with very tiny amounts of money, e.g., a small amount of data at 0.000001 of crypto. 

This level of micro transactions opens avenues for more people to participate in global commerce. In this way, individuals can also prove their credit-worthiness and gain access to credit. A poor grocery keeper on the other side of the world can easily show the cryptocurrency in their wallet and prove that they’re a good candidate for a loan. This means banks can take more risk than they would have and service more people. In return, this opens up the economy for the betterment of everyone. 

Supporting Micro-lending and Micro-trading

Once again, blockchain’s ability to support microtransactions can foster micro-lending and help people pull themselves out of poverty. 

In the past and even now, micro-lending has gotten a bad rap thanks to exorbitantly high-interest rates and unscrupulous loan sharks.

Blockchain could help solve this. First, it would massively help reduce the administrative costs for processing loans, allowing microlenders to administer more loans and extend their services to more borrowers. 

Blockchain tech would also enable farmers in poor regions to engage in micro-trading by giving them direct access to the market and sell their products at fair prices – without the need for expensive markups. Blockchain would help them sell small sizes of products since with the technology, even the smallest sizes will be profitable and economically viable. 

Insurance

This is one of the most interesting ways in which blockchain can help reduce poverty. Traditionally, insurance is usually too expensive for the average person and the poor. This is due to the byzantine administrative channels involved, or simply the service costs being beyond the reach of many. There’s also the issue of corruption in which contributors to insurance schemes are denied payments in the time of need, often under flimsy justifications. 

Blockchain can greatly help to change this by providing a system where people can verify payment records and help deter fraud. Blockchain-based accounting procedures can also reduce admin costs by a ton. 

Blockchain can also allow people to make payments in small amounts so that even the economically disadvantaged can receive insurance services. Insurance claims can also be verified in the immutable and transparent blockchain. And lastly, insurance payments can be processed faster to reduce waiting times and help facilitate a better economy for everyone. 

Blockchain can help surmount the many hurdles that have always hampered efforts towards the reduction of poverty. It doesn’t discriminate on origin, race, class, or gender. It eliminates convoluted procedures that increase costs or delay services. It helps stamp out fraud by showing records to everyone involved. Let’s hope more countries will recognize the power of blockchain and employ it to better their people’s lives. 

Categories
Cryptocurrencies

Marijuana Cryptocurrencies: Definitive guide

The marijuana and cryptocurrency industries are two industries that each, in its own way, has been battling for recognition since its very inception. Marijuana is still largely seen as a harmful substance that ought to be criminalized, only seeing a bit of legal light recently when states began to recognize it as medically beneficial. Cryptocurrency, on its part, is still very much under the water in terms of mainstream acceptance. 

The marijuana and cryptocurrency industries are two industries that each, in its own way, has been battling for recognition since its very inception. Marijuana is still largely seen as a harmful substance that ought to be criminalized, only seeing a bit of legal light recently when states began to recognize it as medically beneficial. Cryptocurrency, on its part, is still very much under the water in terms of mainstream acceptance. 

The marijuana and cryptocurrency industries are two industries that each, in its own way, has been battling for recognition since its very inception. Marijuana is still largely seen as a harmful substance that ought to be criminalized, only seeing a bit of legal light recently when states began to recognize it as medically beneficial. Cryptocurrency, on its part, is still very much under the water in terms of mainstream acceptance. 

These two also face the same major issues; their legal status is shaky at best, and they have a regulatory crackdown nightmare constantly hanging over them.

It’s no surprise, therefore, that the two industries are using each other to gain legitimacy and shatter barriers. 

Why Marijuana Cryptocurrencies? 

It certainly would be fun if we had marijuana cryptocurrencies just for the sake. The truth is that this class of cryptocurrencies emerged to fill a real need. In the US, marijuana is still considered illegal at the federal level. For this reason, banks and other financial institutions have given the marijuana industry a wide berth. 

What this means for marijuana businesses is that they can’t get business loans, conduct transactions, and so on. Marijuana customers also cannot purchase products in a completely free environment. 

Cryptocurrencies, known for their privacy of transactions, are the perfect solution for this scenario. Instead of risking prosecution or being shut down, marijuana sellers can exchange money with less hassle as well as faster and in a more secure fashion. 

Match Made in Heaven

There perhaps isn’t a better-suited relationship between two industries than the marijuana and cryptocurrency industry, and a big reason for that is that they’re still outliers, or at least considered so by the government and media. 

Like we’ve mentioned before, their legal status is still largely grey. They’re both encumbered by legal, political, and regulatory challenges. Their user base is also a lot alike, with each having a bigger share of the younger demographic than, the older one. 

Let’s look at the challenges facing each.

A decade later, cryptocurrencies may be the investment of choice for thousands, but they’re still very much seen as belonging in the fringes of the financial world. Part of this is due to their decentralized and peer-to-peer nature that makes them immune from state interference. Naturally, governments and regulators will handle them with a huge dose of skepticism. 

The other is their reputation as the currency for crime. Bitcoin’s Silk Road saga, where the currency was used for all manner of cringe-worthy transactions, did nothing for the overall reputation of the industry.

Another reason is cryptocurrencies are yet to make a dent when it comes to day to day transactions. This is due to their novel nature, as well as their wild volatility, which renders them unsuitable for daily purchases. As such, very few merchants or businesses are willing to accept them. Also, banks are not exactly itching to start accepting them as a valid currency. 

On its part, cannabis is far from receiving full legal recognition. Despite years of agitation for its legalization by fans, it’s still not legal at the federal level, it’s still viewed skeptically and its use is still stigmatized. Banks are also hesitant to handle anything cannabis due to sticky legal issues.

Coming Together

This state of, uh, limbo for both industries and their similarities gives them the perfect template to work together. 

Cannabis operators and users can rely on cryptocurrency to conduct transactions outside regulatory clampdown and censorship. And crypto gets a ready-made group of user base and adopters, demonstrating that indeed, the currency is as viable as any other. After all, if it can power the marijuana industry and facilitate secure transactions, why wouldn’t it do the same for other industries?  

What are the Impacts of Cryptocurrencies on the Marijuana Industry?

Cryptocurrencies have heralded a new age for the marijuana industry, from small business owners to farmers. 

Aspiring marijuana businesses now have a chance to get off the ground more easily, and marijuana customers can purchase the product more discreetly. 

Marijuana farmers are also using crypto to facilitate purchases and the sale of products, from oils to flowers, in a secure and safe environment.

What are Some of the Popular Marijuana Cryptocurrencies? 

Below are some crypto projects proudly waving the marijuana flag: 

PotCoin

Launched in 2014, PotCoin was one of the earliest cannabis cryptocurrencies to enter the scene. Its debut was pushed by Colorado’s legalization of marijuana, with the creators seeking to capitalize on the opportunities that would open as a result. It first started out as a solution for the trouble cannabis users faced when transacting in the product, even installing a PotCoin ATM in a marijuana dispensary in the state. 

However, the coin didn’t pick enough traction, remaining in the back water until 2017. Its involving of former basketball star Dennis Rodman in marketing efforts might be what finally got it some worthwhile attention. Keen watchers of the crypto space remember when the project released a video and photo of Rodman in North Korea wearing a potcoin.com T-shirt. This little stunt wasn’t so little, going by the fact that the coin gained by 76% in just one day. 

As of April 21, 2020, the crypto is trading at $0.005123, with a market cap of $1, 146, 336. PotCoin uses a proof-of-stake consensus mechanism and can process transactions in 40 seconds, which is remarkable compared to Bitcoin’s 10 minutes. 

DopeCoin (DOPE)

DOPE is a 2014 creation of Adam Howell, and is a “digital currency for marijuana enthusiasts,” according to its website. Also, users can transact in a pseudonymous environment in under a minute, without incurring costs. 

At the time of writing, Dopecoin has a circulating and total supply of 117 million, with a market cap of $127, 891 while trading at $0.001095, according to Coinmarketcap.com. 

The coin seems to be branching out beyond marijuana, however, stating: link “Instead of focusing solely on the marijuana industry, we have expanded our reach to include all blacklisted industries, including marijuana, crypto, vape/e-cig, gambling/betting, big pharma, alcohol and more.” 

HempCoin (THC)

HempCoin, also launched in 2014, is a project that aims to help the agriculture industry adhere to compliance and regulatory rules and avoid losses. It helps track products through the “entire seed to scale” process through a “grow diary app, audit trail programs, and asset tracking tools. 

On the THC platform, farmers of whether “Hemp, Bananas, Corn or Tomatoes can track every aspect of the farming process including location, yields, and a list of everyone who interacted with a particular plant or product. 

THC is currently trading at $0.000961, with a market cap of $245, 949, and a circulating supply of 256 million and a total supply of roughly the same value. The coin has a maximum supply of 300 million. 

CannaCoin (CCN)

CannaCoin is a “group of Cannabis enthusiasts working towards the future development of cryptocurrency applications related to cannabis production, seed production, extract production, glass blowing facilities, vape and dab station manufacturing, crypto development and more.” The coin uses proof of stake velocity consensus mechanism (PosV), an alternative to Bitcoin’s proof of work protocol. 

The coin runs on a decentralized and peer-to-peer platform and is currently trading at 0.015528, with a market cap of $73, 019, and a circulating supply of 4.7 million CCN. 

CannabisCoin 

Developed in 2014, this is a marijuana proof-of-work, peer-to-peer cryptocurrency that aims to streamline payment processing for marijuana dispensaries. 

According to Coinmarketcap, the coin is trading at $0. 008021 currently, with a market cap of $619,475, a circulating and total supply of 77 million CANN, and a total 92 million CANN, respectively.

KushCoin (KUSH)

KUSH is a cryptocurrency that aims to facilitate a smooth supply chain for the marijuana industry, from land acquisition to farming, harvest, transport, delivery, and just the overall growth and sale process of the product. 

Like much of the cryptos involved with cannabis, KUSH was developed in 2014 to streamline processes in the industry and provide a safe and private channel for cannabis consumers. 

Per Coinmarketcap, KUSH’s current value is $0.026729, with a total supply of 5.6 million.  

ParagonCoin (PRG) 

ParagonCoin traces its beginnings to PargonSpace, a co-working space for entrepreneurs in Los Angeles. The company then came up with ParagonCoin as a currency for payment of rent and other services and products in the Paragon premises. 

As you’ve already guessed, the project has now set its sights on the cannabis industry and plans to facilitate seed-to-sale tracking of Cannabis products so as to help farmers with regulatory compliance. 

The coin is now trading at $0.003420, with a market cap of $76, 152.89, a circulating and total supply of 22.3, and 165 million, respectively. 

By their existence alone, these coins are making a statement that both cryptocurrency and marijuana industries are forces to be reckoned with.  Considering the contention with which they have both been treated, the pair can bring out the best in each other and prove their legitimacy to the world. 

Categories
Cryptocurrencies

What is a Bitcoin Mixer? Here is a Detailed Guide

As you transact on the Bitcoin blockchain, sooner or later, you’ll come to realize that while your transactions are not entirely linked to your identity, your Bitcoin address, which is public, and your history of transactions can be used to piece together your real identity. 

As you transact on the Bitcoin blockchain, sooner or later, you’ll come to realize that while your transactions are not entirely linked to your identity, your Bitcoin address, which is public, and your history of transactions can be used to piece together your real identity. 

As you transact on the Bitcoin blockchain, sooner or later, you’ll come to realize that while your transactions are not entirely linked to your identity, your Bitcoin address, which is public, and your history of transactions can be used to piece together your real identity. 

Obviously, this is not a very heartening fact since everyone would ideally conduct their transactions confidentially. While this may be so, many Bitcoin users are not aware that they can add an extra layer of privacy for their Bitcoin transactions. 

One excellent way to do this is to use a Bitcoin mixer, which is a service that ‘mixes’ your coins with other users’ coins in a manner that the origin of each of the coins is completely obfuscated, securing your privacy. 

What Exactly are Bitcoin Mixers?

Also known as tumblers, blenders, or shufflers, Bitcoin mixers are solutions that allow users to mix their coins with other users’ coins in order to protect their privacy. 

As you already know by now, Bitcoin addresses are pseudonymous, meaning while they don’t tie your Identifying information to transactions, a determined person can piece together a transaction trail to the owner of a particular address. Every time you move funds, you risk revealing a great deal of your personal information, from how many coins you own, how you spent them, and so on. 

This is where Bitcoin mixers come in. The idea behind mixing coins is to throw off, or so to speak, anyone who might be trying to follow your transactions. By mixing your coins with other users, you can blur the ties between your Bitcoin address and your real-life identity. 

How do Bitcoin Mixers Work?

To illustrate how a Bitcoin mixer works, imagine blending a fruit drink. Every fruit that goes in there is like a Bitcoin address. When the drink is done, you can’t really tell which fruit is responsible for which flavor. Just as much, when you mix your coins with other users’, no one can tell which coins originate from which address.

Types of Bitcoin Mixers

Today we have a range of Bitcoin mixers: from centralized to decentralized solutions to others that use privacy coins as part of the process. Below, we’ll take a look at two of the most popular solutions available, mainly centralized mixers and Chaumian CoinJoin mixers.

i) Centralized Mixers

These are mixers that accept Bitcoin in return for sending back different coins. The more the users use this service, the more difficult it is to tie the “incoming” coins to the “outgoing” coins. 

Centralized mixers, however, have certain shortcomings. When you deposit your coins in such a mixer, you surrender control of your coins. It’s very conceivable that such a mixer can refuse to return them. 

Another problem is since the mixer knows who sent and received which coins, they can easily re-establish the actual identity of coin holders. If they share this information e.g., when compelled to by law enforcement, users stand to lose their privacy. 

Then there’s the issue of data. Centralized coin mixers usually get access to information such as user activity, IP and Bitcoin addresses, and so on. Ideally, mixers should delete information logs like these in the spirit of privacy. However, you can never know if a mixer follows through with this. 

And finally, centralized mixers can be easily located by law enforcement and forced to shut down. BestMixer is one such mixer that was shut down by Dutch authorities. 

ii) Chaumian CoinJoin Mixers

These are mixers that allow a large group of users to pool together their coins as one large payment to themselves. For instance, 100 users will send 0.1 BTC to a new address, and then merge them to become one big transaction. Everyone will get 0.1 BTC back, but this time, no one can tell where each BTC originated from. 

Mixers that use the CoinJoin implementation can be designed in a manner that not even they can figure out where each transaction went where. Also, it’s impossible for these mixers to refuse to release the coins since users will not sign the merged transaction if they didn’t get their BTC back. 

What Are Some Popular Mixers?

There are reliable wallets that have made a name for themselves in this space, and we’ll take a look at some below. 

  • Wasabi Wallet is an implementation of the Chaumian CoinJoin wallet. Wasabi is designed in such a way that the operator cannot deanonymize user identity or steal coins. The service is trustless by nature, meaning the service only oversees the “merging” of the different coins and does not know which inputs belong to which output. Moreover, Wasabi uses the Tor anonymity network so no one can track your activity.
  • Samourai Wallet also offers a CoinJoin mixing service called Whirlpool that supports both desktop and mobile. With Samourai, all you need to do is to install the wallet – no ID checks, email address, and so on. 
  • JoinMarket: This is a tool that allows users to merge their transactions to create one huge transaction, obscuring the origin of each in the process. JoinMarket has an interesting model: there are market takers and market makers. The market makers are ‘time-rich’ and collect fees when other users coinjoin with them. The market takers are time-stressed and want to coinjoin as fast as possible. Therefore they pay a fee to coinjoin with their time-rich peers.

What’s the Legal Standing of Bitcoin Mixers? 

Much like Bitcoin itself, Bitcoin mixers operate in a legally uncertain area. As such, the legal standing of any Bitcoin mixer differs from jurisdiction to jurisdiction. 

There are legal mixers that have been shut down by authorities as they were perceived to promote illegal activity like money laundering. 

Centralized mixers, which make up the majority of mixers, are particularly prone to being banned, since they have a single point of attack. 

However, as a service, Bitcoin mixing remains largely unencumbered. And even if there was a crack down on centralized mixing services, decentralized mixing services, which are harder to shut down thanks to a distributed platform, would quickly fill in the gap. 

What Are Some Use Cases for a Coin Mixer?

The case for a Bitcoin mixer might be compelling, but you may still wonder when at all to use one. Of course, a Bitcoin mixer is useful whenever you’re transacting in Bitcoin for the sake of safety and an extra layer of security. These scenarios should give you an idea of when a Bitcoin mixer would be useful: 

  • Across the globe, Bitcoin is now accepted for payments by some businesses. If you use the same wallet for every transaction, you’re leaving a trail that makes it easy for illicit players to single out the address as belonging to you. A Bitcoin mixer obscures your transactions, so you’re not leaving a traceable trail that could be followed back to you.  
  • Suppose your wallet has a variety of cryptos. Now let’s say your wallet’s ID is inadvertently exposed online, one way or another. This would render it susceptible to fraud. With a Bitcoin mixer, there’s zero chance of this happening. 
  • Imagine you’re an investor/trader holding a substantial amount of crypto in your wallet. Since  Bitcoin transactions are public, it’s easy to see how much money a particular address moved, and when. If particularly large sums are involved, you may become the target of unscrupulous parties. A Bitcoin mixer removes the possibility of this happening by mixing your transactions with other users’ so no one can know which transaction belongs to who.
  • In the case of hot wallets, which are connected to the internet, your funds are exposed to all manner of online vulnerabilities, from hacking to phishing attacks, to malware. When you use a Bitcoin mixer, transactions to and from your wallet are kept anonymous. 

Why Should You Use a Bitcoin Mixer? 

  • It severs the connection between your sending and receiving addresses, obscuring your transactions.
  • It’s impossible for your funds to be traced to any wallet.
  • It grants you the anonymity that Bitcoin alone can’t
  • It grants you full control over your transactions, as it should be
  • Your personal data is kept away in such a manner that third parties have nothing on you. 
  • A mixing service deletes your transaction history so that they can never be traced back to you. 

Final Thoughts

A Bitcoin mixer gives you greater control over your funds by ensuring no one can follow your transactions’ trail. Any potential hacker is thwarted off, and so is any other third-party who is interested in your transactions’ history. If you need to anonymize your transactions even better, a Bitcoin mixer is worth looking at. 

Categories
Cryptocurrencies

18 Cryptocurrency Scams You Need to Know About 

Ten years into their existence, cryptocurrencies are still confusing to users. Combine this with the fact that some smart investors who got in early made a lot of money during the 2017 crypto boom. This has earned the asset class some allure, making them highly lucrative to investors. Also, cryptocurrencies are still largely unregulated. This combination makes them a ripe target for opportunists and fraudsters who have perfected the art of certain scams.

Ten years into their existence, cryptocurrencies are still confusing to users. Combine this with the fact that some smart investors who got in early made a lot of money during the 2017 crypto boom. This has earned the asset class some allure, making them highly lucrative to investors. Also, cryptocurrencies are still largely unregulated. This combination makes them a ripe target for opportunists and fraudsters who have perfected the art of certain scams.

Ten years into their existence, cryptocurrencies are still confusing to users. Combine this with the fact that some smart investors who got in early made a lot of money during the 2017 crypto boom. This has earned the asset class some allure, making them highly lucrative to investors. Also, cryptocurrencies are still largely unregulated. This combination makes them a ripe target for opportunists and fraudsters who have perfected the art of certain scams.

In this article, we describe the most common cryptocurrency scams, so you always know what to watch out for and hence protect yourself and your funds.  

1. Hardware Wallet 

A hardware wallet is one of the safest places you can store your private key. These wallets constitute a device that resembles a flash drive and offer a safe and secure way for crypto holders to avoid online transactions which are susceptible to hacking, malware, and other vulnerabilities. 

Scammers know that hardware wallets are the go-to safest option for the majority of crypto holders, and are exploiting that by creating hardware wallets that have inbuilt vulnerabilities that make it easy for your crypto to be targeted. Some scams include making hardware wallets with a ‘pre-configured’ seed phrase hidden under a scratch card. The user will be instructed to scratch the card and set up the compromised seed phrase. Once you set up the seed phrase, it’s easy for hackers to siphon your funds. 

While this scam is really efficient, it’s also easy to avoid. Always purchase wallets from trusted sources. A quick search through the internet should show such wallets. For example, wallets that are written about by legitimate websites are good examples. 

2. Exchange Scams

Crypto exchanges are sites where crypto traders can purchase and sell cryptocurrency. However, most crypto exchanges have no regulatory authority overseeing their operations. This has led to the emergence of fake exchanges that are solely out to scam unsuspecting crypto investors. Many traders have been left in the dust after putting their funds in exchanges that turned out to be traps. 

One way to avoid such scams is to only sign up with trusted exchanges. Also, watch out for exchanges touting unrealistically high prices or big discounts. Also, look at the exchange’s URL. A legit website address should begin with HTTPS, signaling that the website is encrypted and thus safe. If an exchange website seems to have a shady-looking address, or there are some grammar errors, chances are it’s a scam.

3. Fake ICOs

ICOs are like IPOs, only this time for crypto. ICOs are a way for new cryptocurrency projects to raise capital. Through ICOs, users can back and participate in crypto projects they’re interested in. However, with a new ICO happening every other week, fraudsters are now using them as conduits for scamming unsuspecting investors.

One way fraudsters do this is by creating fake websites that are purportedly for ICOs and instructing the public to send coins to a fake wallet. Other times, the ICO itself is a gimmick. Unlike some other scams, this kind of scam might be a little harder to detect. However, it’s not entirely possible to avoid one. If you’re interested in a particular ICO, start by picking apart its white paper. Also, do a search on the team behind it. Are they open and with an online presence, or are they shadowy? Do they have relevant experience in the cryptocurrency, finance, or tech industry?

4. Cloud Mining Schemes

What’s the other way to acquire cryptocurrencies if you don’t want to buy or exchange them? Mining. 

However, mining isn’t cheap. It’s very resource-intensive in terms of mining technology, electricity, and time. Some companies have seen a business opportunity out of this, and are now offering users server space to mine coins at a certain rate, for a fee. 

But just like anywhere that money is involved, scammers have now set their eyes on this venture. Some companies are offering what they call “lifetime contracts” that purportedly keep mining costs the same, with lucrative returns. But you’ll notice as the mining difficulty increases, the returns will decrease. Other companies will promise outstanding returns without really disclosing the true costs going into the process, and the diminishing returns occasioned by the increase in mining difficulty. 

5. Multi-Level Marketing (MLMs) 

Multi-level schemes are not just limited to the ‘real-world.’ They’re also well and alive in the digital world. MLMs are schemes that look legit on the surface; they offer huge returns while also taking more money from naïve investors with the promise of even higher profits.

OneCoin is one company that played this game very well. People all over the world were encouraged to sign up and get their friends and family to sign up with the promise of perks and massive earnings. However, it all turned out to be a scam when the leader of the whole set up disappeared, and several members of the scheme were implicated for shadowy operations. 

Always look for information about a company before committing in any way, especially where money is concerned. Read the fine print and establish, if at all, their claims hold any water and are indeed feasible. 

6. Blackmail

This is a scam in which strangers will threaten to release information that you don’t want others to know about, or claim that they’ve hacked your computer and can access it using a remote desktop protocol (RDP). They might claim to have used your webcam to record you doing something that you wouldn’t want others to know about.

They will then demand that you send Bitcoin or another cryptocurrency in return for them to suppress or discard the material or send nothing and see the information sent to colleagues, friends, and family and your social networks. Scammers like these usually steal email lists and other information and attempt to dupe thousands of people using that info.

7. Ponzi Schemes

These are offerings of handsome returns when you deposit a particular amount of money. When you see an offering such as this, know it’s likely to be a Ponzi scheme. A Ponzi scheme is a one where money from the latest rung of investors is used to pay off earlier investors. In the end, a lot of people will lose a lot of money in the process.

8. Free Giveaways

This is a scam in which scammers will take advantage of the viral way in which information spreads online. They will claim to offer free giveaways of cryptocurrency to people who send a small amount of crypto if they register or provide personally-identifying information. In truth, they will use that information in some other sort of exploitation.

9. Phishing Emails

Be wary of emails from services that you apparently use requesting you take a particular action, such as resetting your password or requiring you to interact with your account in any way. Usually, these scams intend for you to reveal or compromise your personal information.

When you get a request like this one, try to establish its legitimacy by calling your company or reaching out to them via their social media accounts.

10. Phishing websites

These scams usually go hand in hand with phishing emails. Usually, you’ll receive a phishing email that links to a replica website. This website will then prompt you to enter your information through a login or prompt you to install malware. These websites may also sometimes appear as sponsored results on search engines or in-app download sites.

You can avoid that scam by not installing any suspicious software or logging to a website unless you’re absolutely certain it’s not a fake one. Also, don’t download any app whose authenticity you’re not sure about. 

11. Impersonation

Some con artists have also mastered the art of impersonation. One way they will pull an impersonation plot is by taking the content of the person they’re impersonating and then publishing it in an account that looks exactly like the original poster. They will then add a follow-up message or some call to action, which is a ploy to acquire people’s information and use it for some swindling scheme.

Also, impersonators will sometimes use these fake accounts to trick followers into taking action, which is also intended to get them to reveal some sort of information.

You can avoid this kind of scam by never responding to any request emanating from a questionable social media account, or one that’s not straightforward with its intentions. Always seek to establish the authenticity of such a request by cross-checking such an account across multiple social platforms.

12. Malware

Use of Malware is another tactic that scammers use to fleece cryptocurrency out of unsuspecting people. This calls for you to be ultra-vigilant whenever you’re sending cryptocurrency. Confirm more than once that you’re sending to the right address.

Some malware can cause you to send funds to the hacker’s address instead of the right one. When you paste the address from your PC’s click board, the malware changes the address, so the funds are unknowingly sent to the hacker’s address. When you realize this, it’s too late, since cryptocurrency transactions are irreversible. Thus, be extremely cautious about what kind of software you install on your PC. A quality security scanner might also help, but it’s not 100% foolproof.

13. Meet in Person

You might come across someone offering to sell or buy crypto from you, and they will ask that you meet in person to conduct the exchange. If it’s not a trusted person that you already know, it’s a good idea to not entertain the proposition. You could end up being robbed or harmed.

Also, cons are known to exchange fake Fiat money for crypto in such meetups. If you must conduct a one-on-one exchange that way, consider asking them to put the money in a peer-to-peer escrow account. But, remember crypto exchanges exist for this purpose. Better to pay the extra transaction fees and stay safe than get in a potentially dangerous situation.

14. Money Transfer Fraud

These are scams in which fraudsters and con artists will send you an email telling you they need help moving money in exchange for a portion of the funds. These are scams geared toward getting you to reveal your identifying information one way or another.

15. Pumps and Dumps

In a pump and dump scheme, an individual (or individuals) usually goes on a hype campaign -on social media platforms -about a cryptocurrency in order to artificially drive up (pump) it’s the price, and when it reaches a certain price, they’ll sell (dump) their holdings for a profit. Usually, it’s inexperienced investors who fall for this ploy, thinking the coin in question is the next big thing. Most of the time, it will be a valueless coin that might never see the light of day, and you’re stuck with it since you’re unlikely to find a willing buyer anytime soon.

When making any crypto buying decision, always rely on your own research and bear in mind that no one knows what value any coin is going to be in the future, so don’t believe anyone who says otherwise.

16. Pyramid scheme

This is a scam where-in a fraudster will promise handsome returns to participants when they recruit a certain number of other participants. This enables the scheme to grow virally and quickly, but the whole thing crumbles soon when there are no more people to recruit. Also, members, or the ones they’ve recruited, will not realize any meaningful returns during the whole debacle.

Never be duped to recruit your network into a scheme with the promise that you (and them) will accumulate some sort of returns. Also, never contribute your money into such a scheme at the behest of any person.

17. Ransomware

This is malicious software that partially or completely blocks your access to your PC or another device. The malware will only grant you access to the device once you have paid a cryptocurrency in ransom. In such a situation, consult a professional to help you remove the malware rather than pay the ransom. Also, be careful about the kind of programs you install in your device. Always make sure that a program is not a fake one impersonating one that you’ve used in the past.

18. Scam Coins

Be careful what cryptocurrency you invest in. Some altcoins (cryptocurrencies other than Bitcoin) are scam coins. Scam coins usually entice investors to put money into a project via a private sale with the promise of high returns to those who get in early.

Scam coins may have a very flashy website and create a climate of fear-of-missing-out (FOMO) to trick people into investing. Other scam coins will offer airdrops (giving away free coins) to potential investors in exchange for investing in the project or joining their community. Also, watch out for cryptocurrency projects that invoke Bitcoin a lot. This is a ploy to trick people into thinking that it is a legitimate project.

Cryptocurrency scams are not going anywhere, and fraudsters are always looking for new ways to perpetrate them. But one scam is usually a variation of another, and knowing what to look out for can help protect you. This comprehensive list should help you avoid being duped and losing your funds.

Categories
Cryptocurrencies

Everything You Need to Know About Gemini Dollar Stablecoin

Cryptocurrencies have all these dazzling features like decentralization, peer-to-peer transactions, and cryptographic security that have made them the darling of investors. The asset class has bucked the trend in these ways, as well as another not so good one, depending on who you’re asking: they’re prone to dramatic price swings. If you’re asking investors, this unpredictability in price is a good thing since it allows them to speculate. 

Cryptocurrencies have all these dazzling features like decentralization, peer-to-peer transactions, and cryptographic security that have made them the darling of investors. The asset class has bucked the trend in these ways, as well as another not so good one, depending on who you’re asking: they’re prone to dramatic price swings. If you’re asking investors, this unpredictability in price is a good thing since it allows them to speculate. 

Cryptocurrencies have all these dazzling features like decentralization, peer-to-peer transactions, and cryptographic security that have made them the darling of investors. The asset class has bucked the trend in these ways, as well as another not so good one, depending on who you’re asking: they’re prone to dramatic price swings. If you’re asking investors, this unpredictability in price is a good thing since it allows them to speculate. 

For the rest of the people who wish to utilize the secure and anonymous currency for everyday activities, the usual cryptocurrencies are not an option. Stablecoins, cryptocurrencies that are backed by an external asset, is an innovation to solve this problem. 

What is Gemini Dollar? 

Gemini dollar is “purpose-built” stablecoin “to bring the value of the U.S. dollar into the modern digital era,” according to its website. 

What this means is it’s a cryptocurrency that borrows the stability and credibility of the U.S. dollar and combines it with the fastness, security, and allure of digital money. New Gemini tokens are printed in a highly controlled environment that ensures the amount of Gemini dollars issued and in supply do not exceed the underlying U.S. dollar reserve.

What are Stablecoins? 

Stablecoins are cryptocurrencies that are pegged to a “real-world” asset. The real-world asset could be anything from Fiat currency to a commodity such as gold and so on. Still, some stablecoins are pegged against another cryptocurrency whose supply is controlled by an external market mechanism. 

The idea behind stablecoins is to provide some stability and predictability to a cryptocurrency. Cryptocurrencies are known for their wild and unpredictable price swings, which renders them unsuitable for regular and everyday use. With stablecoins, users get the privacy and security of cryptocurrencies together with the stability and reliability of crypto. 

Stablecoins usually have the same value as their underlying asset. For instance, if a coin is pegged at the ratio of 1:1 to the U.S. dollar, its value will revolve around the value of the dollar. Stablecoins can usually be redeemed for their underlying assets.

Who is Behind Gemini Dollar? 

Gemini Dollar is a project of Cameron and Tyler Winklevoss, who are venture capitalists, Bitcoin investors, and owners of the Gemini Dollar exchange. The Gemini Dollar website states that the currency was created by “top technologists and security engineers.”

Gemini is regulated by the New York State Department of Financial Services. The currency takes a departure from a stablecoin norm but is backed by only one bank – State Street. The company is periodically regulated by accounting firm BPM so as to stay in compliance with auditing laws. 

How Gemini Dollar Works

Gemini Dollar runs on the Ethereum blockchain. The coins are generated when you deposit Fiat money into Gemini’s custodian account. The Ethereum blockchain confirms the supply of coins, while the auditing firm sees to it that the supply is equivalent to the amount of USD holdings. Each Gemini dollar is equivalent to one U.S. dollar held in the backup reserves. 

The Gemini dollar ecosystem comprises three critical layers: 

i) The Proxy Layer: this is the governance layer which identifies and allows eligible on-chain processes, and can stop any process if need be. It also creates and transfers GUSD coins. 

ii) The Impl Layer. This layer is where data and logic for the execution of smart contracts reside. Here, creation, transfer, and token ‘burning’ are carried out. This layer also ensures that a GUSD is printed for every USD held in reserve. 

iii) The Store Layer. This ledger oversees transactions and makes them public so the public can view Gemini dollar transactions. It also serves as the “external and eternal Gemini dollar ledger.”

Security Features of Gemini Dollar

The Gemini Dollar system utilizes the following security features to ensure the safety of funds and client privacy. 

  • Offline Keys. These are keys that approve high-risk actions and are stored in Gemini’s cold storage system. 
  • Key Generation. This is the process by which Gemini generates, stores and manages keys by use of hardware security modules (HSMs)
  • Multi-signature. Multi-signature keys are used to approve risky transactions. This process involves two or more people signing off a transaction. 
  • Time lock. This mechanism stops transactions deemed as risky or suspicious for a certain period before execution. During the time lock, the system can detect and respond appropriately to any security or privacy breach.
  • Revocation. This mechanism revokes any malicious or erroneous transactions before execution. 

How Does Gemini Dollar Differ From Other Stablecoins? 

Gemini Dollar belongs to a class of stablecoins that rely on a centralized entity to issue coins and manage a real-world asset reserve. Some of the stablecoins in this category include USD coin (USDC), TrueUSD (TUSD), Paxos Standard Token (PAX), and Tether (USDT).

These coins differ from each other in their function only slightly but otherwise operate on the same centralized model of issuing coins, freezing suspicious transactions, and so on. The key takeaway is that they are not censorship-resistant like, say, Bitcoin or Ethereum.

Gemini Dollar: Tokenomics

Unlike other stablecoins such as Tether and USDC, the Gemini dollar is not enjoying much dominance in the crypto market. As of April 7, 2020, the stablecoin is ranking at #405 amongst all cryptocurrencies. It has a market cap of $5,637,192 and a 24-hour trading volume of $26, 693, 402. It’s a circulating supply of 5,592,534, and its total supply is of the same value. 

Where to Buy and Store GUSD 

You can purchase Gemini Dollar at any of these exchanges: BitFinex, CoinMex, BitMart, OKEx, YoBit, Bitrue, and so on. In some of the exchanges, you can buy the currency with U.S. dollars, while in others, you need to purchase a cryptocurrency such as BTC, ETH, XRP, USDT, and so on. 

Being an ERC token, the Gemini dollar can be stored in any Ethereum wallet. Some popular options include MyEtherWallet and MetaMask. Alternatively, you could store them in safer hardware wallets such as Trezor and Ledger Nano. 

Final Thoughts

Gemini dollar’s proposition doesn’t differ much from that of other stablecoins, but it’s mysteriously not performing as well as them. Whether it’s because of branding or market factors beyond its control, it’s hard to figure why. Interested investors can only wait and see if there’s an upturn for the stablecoin in the near future. 

Categories
Cryptocurrencies

Blockchain as a Service: The Definitive Guide

Blockchain is the technology that powers the vast majority of cryptocurrencies, including Bitcoin, the pioneer user of the technology, and the most successful cryptocurrency. One of the reasons cryptocurrencies have been a hit with users and investors is their high-level security and decentralized nature. It’s blockchain technology, their underlying technology, which affords them these qualities. […]

Blockchain is the technology that powers the vast majority of cryptocurrencies, including Bitcoin, the pioneer user of the technology, and the most successful cryptocurrency. One of the reasons cryptocurrencies have been a hit with users and investors is their high-level security and decentralized nature. It’s blockchain technology, their underlying technology, which affords them these qualities. […]

Blockchain is the technology that powers the vast majority of cryptocurrencies, including Bitcoin, the pioneer user of the technology, and the most successful cryptocurrency. One of the reasons cryptocurrencies have been a hit with users and investors is their high-level security and decentralized nature. It’s blockchain technology, their underlying technology, which affords them these qualities. It’s also the reason why numerous industries are trying to onboard the technology in a bid to optimize their processes.

Blockchain was first used in Bitcoin but has since seen growing use in a plethora of disparate industries – from food to music to governance to diamond mining and more. The technology is remarkable for its unprecedented features. First of all, it’s decentralized, meaning no intervening authority can interfere with its operations. Again, records that it holds are immutable, meaning they can’t be deleted. Then, transactions on the blockchain are open for all participating parties to see. And finally, it’s secured by state-of-the-art cryptography, making it ultra-secure.

These features make blockchain a very interesting proposition for enterprises. But there is one problem: blockchain technology is not cheap. Any company wishing to develop its own blockchain would need to pump a ton of money into the project. When you combine that with the technical nature of the technology, it beats logic for any company to choose that path.

Luckily, companies can utilize blockchain in their organizations without breaking the bank or having to deal with the technical aspects of the technology, thanks to blockchain as a service (BaaS). 

BaaS is a model based on the ‘software as a service model,’ and it works in a similar fashion; only this time, it deploys blockchain solutions.

What is Blockchain as a Service? 

Blockchain as a service (BaaS) is the means by which businesses can subscribe to and access blockchain benefits such as security, transparency, immutability, and trustlessness without having to develop their own blockchain.

Blockchain as a service allows businesses to experiment with smart contracts, decentralized apps, and other blockchain applications with the blockchain provider hosting and maintaining the network. 

 BaaS allows businesses across a wide range of industries to have the best of both worlds – capitalize on the benefits of blockchain while avoiding the cost of maintaining one.  

How BaaS Works

As blockchain becomes more popular, so do more companies wishing to explore its benefits. But creating, configuring, operating, and maintaining a blockchain from the ground up is no easy task. A company would need to invest in considerable manpower and inject a lot of money into the process. It is an incredibly tasking process, both time-wise and financially.

Thanks to BaaS providers, companies can now circumvent the technical complexities and operational costs needed to create a blockchain. They can access one for a fee, while the provider provides continuous back end support functions. 

The BaaS provider support operations such as bandwidth management, appropriate resource allocation system health monitoring, prevention of attacks, incident management, hosting needs, and data security. With this arrangement, a client can focus on improving and streamlining their business operations with the power of the blockchain.

A BaaS provider’s role is very much like that of a web hosting provider. Web hosting providers such as Amazon Web Services or HostGator take care of maintenance and infrastructure of the website, while the website owner runs it from their end.

BaaS may be the unexpected path to deeper and mainstream adoption of blockchain across industries and enterprises. Instead of investing considerable resources in a blockchain – which acts as a barrier to the technology’s adoption, businesses can simply lease one and enjoy a hands-off and convenient use of its revolutionary features. 

Cost of Self-Hosted Blockchains vs. BaaS

The cost of a BaaS varies depending on several factors, but it will always be cheaper than a self-hosted blockchain. For a self-hosted blockchain, a company would need to invest a large amount of money in covering startup costs (developers, hardware, software, licensing, etc.), as well as operational costs (maintenance, bandwidth expenses, transaction and so on). These costs combined can rack up to thousands of dollars.

On the other hand, BaaS pricing uses a pay-as-you-go or plug-and-play model, where a business only pays for using the service for an allocated period of time. This model depends on several factors, including the volume of transactions, number of nodes, peer node storage, payload size on transactions, and so on.

Some BaaS providers determine costs based on an hourly rate, while others use a tiered pricing model where each tier is based on the Units of service consumed. Note that BaaS costs include consultation fees as well as any arising support services as per the contract agreement.

How to Address Baas Security Concerns

While blockchain can help an organization achieve better outputs, the concern about security as well as privacy is not that easily solved. This is because the most well-known blockchains store data on a publicly available ledger. No organization is willing to put its business out there, or so to speak. There is a special need to preserve sensitive data, such as financial records and employee identities. This is addressed by the use of private blockchains, which differ from public blockchains in that only authorized individuals can access records. 

There is also the issue of glitches and bugs, which can occasion serious disruptions and data breaches, leaving the whole system vulnerable. To preempt such situations, it helps to conduct due diligence and thorough research before taking on a BaaS provider. Consider things such as:

  • What are their credentials?
  • What is their longevity in the industry? 
  • What is their reputation? 

It also helps to define your expectations before going to the market so that there’s no confusion on the part of either party. This includes assurances and guarantees that you first need to agree on before signing the contract. 

How to Choose a BaaS Partner

On a normal day, a lot of work goes into evaluating potential business partners. Now when it comes to choosing a BaaS vendor, the process is even more rigorous, just considering the sensitivity involved (safety of company data). Also, there is no precedent or industry best practices and guidelines, making it more important to prudently choose a BaaS partner. Here’s what you should look out for before picking a BaaS partner: 

i) Prior Experience 

Ensure that the BaaS vendor has demonstrable experience in deploying blockchain technology on a similar scale to the one you’re planning for your business. For even more assurance, ask for recommendations from past customers. 

ii) Commitment to Quality

Make it your point to thoroughly vet the potential BaaS provider to gauge their commitment to the highest degree of quality and adherence to standards.

iii) Security Standards

What is the vendor’s attitude toward security? Look for any gaps in the proposed security plan. Address any security concerns that are unique to your business. Remember with blockchain, the importance of a robust security plan cannot be overestimated since even the tiniest bug could lead to major repercussions.

iv) Choice of Operating Systems

Does the vendor have any experience in deploying blockchain for operating systems similar to your organization’s? Also, can they integrate the technology to mesh seamlessly with your legacy systems?  

v) Ease of Use 

Blockchain is already complicated as it is. You need a vendor who will integrate blockchain in your systems in a way that’s easy to use. Employees should be able to navigate the systems without experiencing any difficulty. 

vi) Pricing and Support

Just like with any service, you want value for money for a BaaS. Evaluate different offers and choose the one that offers you the most value in the long term. 

Examples of BaaS Companies

Several organizations have taken the lead in the BaaS space, and the presence of some heavyweights in the list demonstrates the massive potential of blockchain and how it might very well become a dominant force in the future. Let’s take a brief look at each below:

Amazon Web Services (AWS)

This is an offshoot of the powerful conglomerate, Amazon. AWS provides cloud-based blockchain solutions to businesses, regardless of their location. When businesses subscribe to the platform, they have access to a high-performance, secure and reliable “Quantum Ledger Database’ through a platform known as Amazon Managed Blockchain, which was launched in 2018. There’s even an option for companies to request an initial setup – which they call ‘AWS Blockchain Templates’ and manage the service on their own, going forward. Currently, AWS is supporting high-profile clients such as BMW, Accenture, the Singapore Exchange, Nestle, and Sony Music Japan.

IBM Blockchain Platform

IBM has a blockchain platform through which organizations can “easily build and join a blockchain network on-premise, or any private, public or hybrid multi-cloud…” IBM has utilized several strategic partnerships in developing and deploying blockchain, including Chainyard – a blockchain firm, as well as tech company IT People. IBM’s BaaS flagship product is Hyperledger Fabric, which has already seen wide adoption across industries including food supply, media, supply chain, media, trade finance and more.

Microsoft Azure 

Microsoft has a blockchain platform dubbed Microsoft Azure, which enables companies to deploy blockchain solutions, build blockchain-based applications and securely manage data. The Azure platform provides three products that clients can use: Azure Blockchain, Azure Blockchain Workbench, and Azure Blockchain Development Kit.

Azure bills itself as more affordable than Amazon’s AWS, saying the latter is “five times more expensive than Azure for Windows Server and SQL Server.” Companies that wish to explore blockchain technology and are already utilizing Microsoft products such as Logic Apps and Flow may find it cheaper and more convenient to integrate Azure. Microsoft Azure’s clients include General Electric and T-Mobile.

Alibaba Cloud BaaS

Alibaba is known as a major player in the technology space, so it was only a matter of time before it came out with blockchain solutions for its broad base of subscribers. The company’s blockchain platform utilizes Quorum, Hyperledger Fabric, and the Ant Blockchain, to integrate its Cloud’s Internet of Things to enable businesses to track products among other services. Currently, Alibaba deploys blockchain in three levels: enterprise-level, private deployment and blockchain solutions tailored for container services.

 Corda

Corda is an open-source distributed ledger platform designed by enterprise solutions company R3. On the Corda platform, companies can transact in a decentralized, peer-to-peer platform via the use of smart contracts. Corda’s BaaS has been used by the Royal Dutch Airlines to streamline financial processes and settlements and secure and maintain accurate records. Other clients in Corda’s fold include Monetago and Tradeix. Corda operates based on three principles: interoperability, security, and privacy.

Oracle Blockchain Cloud Service

Oracle’s BaaS seeks to help businesses “increase trust and provide agility in transactions across their networks” via its Hyper Fabric-based enterprise-level and pre-assembled blockchain platform. Through the platform, businesses can deploy blockchain networks for private or consortia use, enroll new members, and utilize smart contracts to achieve trustlessness and accuracy. Oracle’s BaaS is compatible with other Oracle tools, such as identity management and remediation tools.

 Final Thoughts

Blockchain brought with it unprecedented levels of transparency, security, and effectiveness. By utilizing the technology, businesses can dramatically change how they do things – for the better. BaaS can help them take advantage of the technology for this end; without committing a staggering amount of resources. They can focus on what blockchain can do for their business model while leaving the heavy lifting to BaaS operators.

It’s a win-win model for both blockchain and businesses. The more businesses take up the technology, the more they push it to the mainstream. Eventually, blockchain will become this ubiquitous phenomenon of society, much like the internet.

Categories
Cryptocurrencies

Electrum Bitcoin Wallet Review 2020: Features, cost, pros and cons

Electrum Bitcoin wallet is arguably one of the most popular and oldest software wallet currently available. It launched in November 2011, and it is estimated that more than 10% of all bitcoins transactions conducted today involve Electrum bitcoin wallets. Created by Thomas Voegtlin, a German computer scientist, the wallet technology is open-sourced, allowing for consistent developments that make it the most secure software wallet around. The bitcoin-only wallet is feature-rich but can, at times, be said to have prioritized system features over user-friendliness. 

In this review, we look at some of the factors making Electrum one of the most trusted software wallets, its key features, and compare it with other hot and cold wallets.

Electrum Key features:

Mobile and desktop: While it started off as a pure software wallet, Electrum has evolved over the years and is currently available as desktop and android apps. Both are regularly updated and patched to address different vulnerabilities and enhance their ease of use.

Fast: You don’t need to download the entire electrum blockchain to store your coins. You only need the software wallet that is stored within your phone or desktop, and this contributes to the expedient electrum transactions.

Hardware wallet integration: Electrum can integrate with all the popular hardware wallets out there, including Ledger Nano S, Keepkey, and Trezor. The integration makes it possible to access all electrum features, including the transfer of bitcoins in and out of the electrum wallet via the hardware wallet interface.

Tor support: In a crypto industry first, Electrum wallets are now compatible with the Tor browser. Tor is popular for its IP masking capabilities, and the integration is in line with its commitment to upholding user anonymity.

No Downtime: The electrum server network is highly decentralized, a move that eliminates the possibility of a central point of failure. This decentralization and the fact that it is highly vetted by industry professional has also eliminated the possibility of downtime.

OS compatibility: Electrum is highly versatile and is compatible with all popular operating systems, including Linux, Windows, and macOS desktops, as well as Android smartphones.

Export coins to another wallet: Electrum wallet doesn’t lock in your funds, implying that even though it doesn’t allow for integration with other software wallets, you are free to transfer your digital assets held in an electrum wallet to any other software or hardware wallet seamlessly.

Security features:

Password protected: The Electrum bitcoin wallet is password-protected, and you get to set the password for your wallet during installation.

Cold storages: The electrum desktop, to a certain extent, can be considered cold storage. While it stores your bitcoins in desktop wallets, your private keys are safely tucked away from any internet connections.

Multi-signature: You can use the recovery phrase to open and maintain several electrum wallets on different devices, after which you can assign them the multi-sig capabilities to ensure that even if one was compromised, the bitcoins therein cannot be transferred without the permission of the other traders.

Offline key phrase generation: Like hardware wallets that generate sensitive wallet information like pin codes and recovery phrases on the internet detached devices, Electrum supports the offline generation of the recovery phrase. It allows you to generate the password and recovery words offline, away from malware and keyloggers.

Anonymous users: Electrum is one of the few wallets that support anonymous account creation. Virtually anyone can, therefore, download the Ethereum software wallet and create an anonymous user account. 

Currencies supported

Interestingly, the electrum desktop and smartphone wallets will only support hold bitcoins. The open-source nature of the technology used to develop the electrum wallet has encouraged the offshoot of electrum wallet forks that specialize in holding Bitcoin cryptocurrency fork currencies like Bitcoin Gold, Litecoin, and Bitcoin Cash.

Electrum wallet cost and other fees

Electrum wallet company is a service provider. While they don’t charge you for downloading the wallet, you will incur a transaction fee every time you send bitcoins from your account. Currently, the wallet imposes a default flat fee of about 0.2 mBTC per transaction.

The rate is, however, not fixed and will often fall to around 0.1 mBTC depending on such factors as the amount you wish to send.

Note: 1 mBTC refers to a millibitcoin (one-thousandth of a bitcoin).

Setting up the Electrum wallet:

How to install the Electrum wallet:

Step 1: Start by downloading the Electrum wallet from the official Electrum website (www.electrum.org) based on your desktop’s operating system.

Step 2: Proceed to the installation page where you will be asked to chose between standard wallet, Multi-signature wallet, wallet with two-factor authentication, or import bitcoin wallet or private keys. Chose accordingly, but for simplicity purposes, we will highlight how to create a standard wallet.

Step 3: If you choose the standard wallet, the question will be whether you wish to create a new seed or recover a wallet using an existing seed. If you had lost access to a smartphone or desktop holding your private keys, you would go for restoring a wallet using the word seed you have. But since we are creating a new account, we click on “Create a new seed.”

Step 4: The installer will display a 12-word recovery seed that you are required to write down.

Step 5: The next window displays a confirmation window that requires you to key in the recovery seed words to verify that you captured them accurately.

Step 6: Proceed to create your unique electrum password and store the recovery seed in a safe place. Your wallet is now ready for use.

Sending and receiving coins:

To receive bitcoins from your other wallets or third parties, you need to first access your online electrum wallet:

Step 1: Click on the receive icon.

Step 2: The wallet will display the bitcoin receiving address

Step 3: Copy the address and send it to whoever you wish to receive your bitcoins from

To send payments from your Electrum wallet, you still need to first access your electrum wallet on your browser:

Step 1: Click on the send payment icon.

Step 2: Key in/paste the wallet address you wish to send bitcoins to and the amounts you want to send (inclusive of the electrum wallet transaction fees)

Step 3: Confirm the details before authorizing the payout

Electrum hardware wallet pros and cons:

Pros:

  • It is one of the most accepted and widely used bitcoin wallets primarily because it is inexpensive.
  • Embraces several high-quality security features like the multi-signature and two-factor authentication
  • Can easily integrate with the more secure hardware wallets
  • Electrum wallet is feature-rich
  • Maintains an easy setup process for new accounts and recovery of lost private keys

Cons:

  • Can be easily compromised by powerful key logger malware that records all your account sign in details
  • You must maintain a highly powerful antivirus software to keep malware out, which might be costly over time.
  • Electrum software wallet prioritizes the feature richness of the wallet over its user-friendliness.
  • Despite there being 1000+ cryptocurrencies and tokens, the Electrum wallet will only support bitcoins.

Electrum wallet compared to competitors:

Electrum wallet’s biggest strengths and advantages emanate from its wide range of security features. In the face of online hot wallets that like the eToro and Coinbase, Electrum may seem complicated to use as you are required to first move your funds to the crypto exchange before trading them. The move is tedious and costly. Not to mention that they support a wider range of cryptocurrencies and tokens Electrum, on the other hand, can be considered secure than either of these given its cold storage, multi-signature, and recovery seed features.

Customer support:

The fact that the Electrum is an open-sourced project with no central authority can be attributed to its near-nonexistent customer support service. On their website, for instance, you will only find the social media links and no phone number or live chat feature.

Verdict: Is the Electrum wallet worth buying?

Bad as Electrum bitcoin wallet’s customer support service maybe, it still remains the most formidable bitcoin wallet. Nearly 10% of all bitcoin transactions today can be traced back to an electrum wallet. Anyone looking for an inexpensive wallet that only maintains relatively low transactions should look for an electrum wallet. It also appeals to experienced crypto traders who are looking for a balance between fast transaction processing and the safety of their digital assets.  The low transaction fees also tend to favor low-volume traders and investors. Our verdict: Electrum bitcoin wallet provides value for money.

Categories
Cryptocurrencies

Trezor One Wallet Review 2020: Features, cost, pros and cons

TREZOR has two claims to its massive popularity and influence in the crypto industry. First, it is the pioneer crypto hardware wallet – created in 2014, and secondly, it is developed and distributed by one of the most reputable crypto industry security systems providers – Satoshi Labs. Its influence in the offline crypto storage space is so significant that most of the hardware wallet brands available today have at one time borrowed a leaf from its sleek design or its source code.

TREZOR has two claims to its massive popularity and influence in the crypto industry. First, it is the pioneer crypto hardware wallet – created in 2014, and secondly, it is developed and distributed by one of the most reputable crypto industry security systems providers – Satoshi Labs. Its influence in the offline crypto storage space is so significant that most of the hardware wallet brands available today have at one time borrowed a leaf from its sleek design or its source code.

TREZOR has two claims to its massive popularity and influence in the crypto industry. First, it is the pioneer crypto hardware wallet – created in 2014, and secondly, it is developed and distributed by one of the most reputable crypto industry security systems providers – Satoshi Labs. Its influence in the offline crypto storage space is so significant that most of the hardware wallet brands available today have at one time borrowed a leaf from its sleek design or its source code.

In this review, we explore whether the key-holder sized multicurrency hardware wallet lives up to its reputation. We look at its costs, features, and the level of security it offers. We also look at its costs and other fees in comparison with some of its hot and cold wallet competitors.

Trezor Key features

Small size: TREZOR One is smaller in size when compared to some of its competitors like the wide screened keep-key wallet. The biggest advantage of this is that it makes it highly portable. On the flip side, though, it means that the wallet has a relatively small screen size.

Satoshi Labs: It’s no secret that Satoshi Labs redefined the way crypto users handle and store their coins with the creation of Trezor One hardware wallet. The company further is also regularly providing patches and firmware updates for the wallet.

Compatible with all OS types: TREZOR hardware wallet is compatible with virtually all the most popular operating systems, including Windows, macOS, Linux, Android, and iOS.

Multiple types of Trezor wallets available: There are two primary types of TREZOR hardware wallets – Trezor One (also known as the standard wallet) and Trezor Model T (referred to as the premium wallet). They have their differences in the number of currencies supported and security features. Trezor One is also smaller in size, with two buttons, and features a small screen while Trezor Model T is comparatively larger and features a wider touchscreen with no buttons.

Compatible with software wallets: Both Trezor wallets are compatible with popular desktop software wallets like GreenAddress, MultiBit HD, and Electrum as well as Mycelium and GreenBits Android wallets. The wallet can be set up and managed via the myTREZOR.com site or via the TREZOR Chrome extension.

Security features

TREZOR hardware wallet’s first line of defense when it comes to protecting their client’s digital assets lies in the offline storage of private keys. Others include:

Pin code protection: Both TREZOR hardware wallets use a pin code system that is set during setup. You will need the pin to access your crypto balance and authorize in and outbound crypto transactions. The wait time is raised by the power of two every time you input a wrong pin code, further compounding the security level.

24-word recovery seed: Should you forget the pin, you can recover your private keys using the 24-word recovery words given during set up. In case the device is damaged, lost, or stolen, you can use the recovery seed words to recover your digital assets.

Passphrase: You can also add a passphrase, the 25-word to your recovery seed, to further boost the security of the device and its contents. You will, however, want to tread carefully when dealing with a passphrase as it doesn’t have a backup, and forgetting it, makes your crypto assets inaccessible even to you.

Device buttons and touchscreen: TREZOR One has two navigation buttons while TREZOR Model T has a touchscreen, and both serve the same purpose of authorizing transactions. This makes it impossible for a hacker to transfer your crypto assets even if they gained access to your myTREZOR account.

Currencies supported

TREZOR One supports all the most popular cryptocurrencies like Bitcoin, Litecoin, Dash, Dogecoin, Bitcoin Cash, and 1000+ tokens and stable coins like USDC and USDT.

TREZOR Model T, on the other hand, supports all the cryptocurrencies, tokens, and stable coins supported by its Trezor One and a few more not supported by its counterparts like Ripple, EOS, Cardano, Monero, Ontology, Horizen, and ValorToken.

Trezor wallet cost and other fees

TREZOR one currently goes for $55

TREZOR Model T is currently priced at $251

There are no other fees associated with the use of either TREZOR hardware wallets. Firmware updates and patches are free for all Trezor wallet users.

Setting up the Trezor wallet:

How to install Trezor one wallet:

Step 1: Open the Trezor.io website, select the install Trezor one option and proceed to download and install the Trezor Chrome/Firefox extension.

Step 2: Connect the device to the computer using its USB cable

Step 3: Select the install firmware option, unplug and reconnect the device to refresh once the installation is complete.

Step 4: Click on the Create New icon and “create a backup in three minutes” to generate the 24 recovery seed words.

Step 5″ The recovery words will appear on your device screen, and you can write them down by using the buttons to scroll up and down. Pay key attention to spelling and the order in which they appear.

Step 6: Finish by assigning your device a name and creating the pin code.

Sending and receiving coins:

To receive funds into your Trezor wallet, connect the device, and open your Trezor account:

Step 1: Click the receive icon.

Step 2: Select “show address.”

Step 3: Ensure the address on the screen display matches the on-device screen, copy and send it to whoever is sending you the digital assets.

To send payments from your Trezor wallet, you still need to connect the computer and open your Trezor account:

Step 1: Decide on the currency you want to send

Step 2: Key in the receiver’s address and the amounts you wish to send

Step 3: Confirm the details and authorize the payment.

Trezor hardware wallet pros and cons:

Pros:

  • You have the option of choosing between the standard Trezor One and Premium Trezor Model T wallets.
  • Trezor hardware wallets support more than 1000 cryptocurrencies and tokens.
  • The wallet has a relatively straightforward setup process.
  • The Trezor wallet technology is open-sourced and has thus been scrutinized and enhanced by a legion of developers to come up with the most secure wallet.
  • Digital assets on the device are kept offline under a multi-layered security system.

Cons:

  • In 2017, hackers were able to comprise the security of Trezor wallets, enabling them to steal and identify the private keys stored in the devices, and this haunts Satoshi Labs to date.
  • One may consider their $59 price tag exorbitant given the number of free alternatives available.
  • The wallet isn’t hierarchically deterministic.
  • Trezor One doesn’t support popular coins like Ripple and Monero.

Trezor wallet compared to competitors:

When compared to such online hot wallets as Coinbase and eToro, Trezor has the advantage of reduced risk exposure of coins given that they are stored offline. Satoshi Labs also imposes multi-layered security features. Note, however, that the online wallets maintained by these exchanges are free to use for their account holders. Additionally, the integration of these online wallets with reputable crypto exchanges makes their wallets easier to use by simplifying the send/receive crypto processes between the exchange and the wallet.

When compared to equally reputable hardware wallets like Ledger Nano and Keepkey, Trezor has a more solid reputation. The two can even be considered forks of the Trezor wallet as they have borrowed heavily from its open-source network. The 2017 security breach, however, gave the crypto community a reason to doubt the effectiveness of Trezor. 

Customer support:

Trezor has a highly attractive customer support system. On the support page of their website, is an elaborate FAQ section detailing some of the most common challenges faced by their hardware wallet users. There also is the technical issues and system status sections that you can use to check the health of your wallet and determine if it is functioning optimally. The customer support team is only accessible via TREZOR social media pages as they do not have a phone number on display.

Verdict: Is the Trezor wallet worth buying?

Trezor hardware wallets have numerous strengths, from the pioneer hardware wallets to supporting one of the widest range of cryptocurrencies and tokens. The open-source nature of their technology further ensures that programmers are constantly probing its effectiveness. The company is nonetheless still dogged by the 2017 security breach. Overall, we feel that it is moderately priced and worth buying for individuals looking to properly secure their crypto assets.

Categories
Cryptocurrencies

Ledger Nano S Wallet Review 2020: Features, cost, pros and cons

Ledger Nano hardware wallets entered the crypto space in 2014. Six years down the line, it has emerged as one of the most reputable crypto hardware developers. And in its line of flagship products are two highly advanced crypto hardware wallets, namely Ledger Nano S and Ledger Nano X. In these reviews, we will be looking at what is arguably their best selling hardware wallet, Ledger Nano S. After the record sale of over 1.4 million units, we want to understand what gives it an edge over the rest of the crypto wallets currently in circulation.

Ledger Nano hardware wallets entered the crypto space in 2014. Six years down the line, it has emerged as one of the most reputable crypto hardware developers. And in its line of flagship products are two highly advanced crypto hardware wallets, namely Ledger Nano S and Ledger Nano X. In these reviews, we will be looking at what is arguably their best selling hardware wallet, Ledger Nano S. After the record sale of over 1.4 million units, we want to understand what gives it an edge over the rest of the crypto wallets currently in circulation.

Ledger Nano hardware wallets entered the crypto space in 2014. Six years down the line, it has emerged as one of the most reputable crypto hardware developers. And in its line of flagship products are two highly advanced crypto hardware wallets, namely Ledger Nano S and Ledger Nano X. In these reviews, we will be looking at what is arguably their best selling hardware wallet, Ledger Nano S. After the record sale of over 1.4 million units, we want to understand what gives it an edge over the rest of the crypto wallets currently in circulation.

We will be looking at the unique operational and security features that endear Ledger Nano S to the crypto community. Additionally, we will vet its cost and fees, level of customer support offered by its developers, and compare its effectiveness against its competitors before telling you if it lives up to its reputation. Let’s start by looking at its key features:

Ledger Nano S Key Features:

Software wallet integration: The Ledger Nano S can be easily integrated with different other type software and smartphone-based wallet apps like the android based Mycelium or software-based wallets like electrum.

Buttons and a built-in display: The Ledger Nano S is a hardware wallet with two buttons and an inbuilt display screen. The two buttons come in handy when installing and configuring the disk as well as during transaction confirmation.

OS compatibility: Ledger Nano S hardware wallet is compatible with virtually all the most popular operating systems like Windows, Linux, and macOS.

Stores between 3-5 wallets: The ledger Nano S can support between 3 to 5 different crypto wallets at a go. This ideally implies that one can only create three different types of cryptocurrency accounts at a go. In a rather complicated workaround, however, Ledger Nano S users have claimed to be able to add more cryptocurrency accounts to their wallet by integrating wallet apps into the hardware wallet and later deleting the app from the wallet. By deleting the app, you leave the private coins in the wallet, but you will have to add the app every time you wish to transact.

Security features:

Encryption: Ledger Nano S doesn’t just store your private keys; it also employs the highest grade of encryption to keep them as safe as possible.

Dual chips: The Ledger Nano S hardware wallet embraces the dual-chip technology and is currently fitted with the ST31H320 and STM32F042 chips. Once you store your private keys here, these chips sign the transactions separately as they are two different pieces of hardware, effectively adding another security layer around your coins.

Pin code: Like any other hardware or software wallet, you will have to set up the wallet access pin code. This is, in most cases, the first line of defense against illegal access to your private keys.

Offline configuration: Ledger Nano S features an inbuilt display that makes it possible to configure and setup the most sensitive aspects of your wallet’s security like the pin code and the generation of the recovery seed words offline.

Cold storage: The USB like device stores your crypto assets in a highly secure offline environment under a multilayered security system.

24-word recovery seed: when installing the device, the Ledger Nano S provides you with an offline auto-generated list of 24 words that you can use to reset your device if you forgot your pin code. You could use the recovery seed to access your private keys on another ledger Nano S wallet if the one you already have was stolen or compromised.

Currencies supported on Ledger Nano S

Ledger Nano S supports all the popular coins like BTC, Eth, BitcoinCash, Ripple, Litecoin, Dash, Dogecoin, Komodo, and ZCash. The hardware wallet company is also constantly increasing the number of supported devices and currently lists 700+ that you can hold in a Ledger Nano S wallet.

Ledger Nano S wallet cost and other fees

The Ledger Nano S hardware wallet costs $59 (exclusive of VAT and shipping). There are no additional deposit or withdrawal fees.

Setting up the Ledger Nano S wallet

How to install Ledger Nano S wallet:

Step 1: Ledger Nano S does not have an inbuilt battery; therefore, plug it into a computer using a USB cable to power it on.

Step 2: The device display will present you with an option of configuring new device or private keys recovery, use the buttons to choose the configuration. Proceed to set a 4-7 digit pin code, using the buttons to scroll up and down and confirming a number by pressing both buttons simultaneously.

Step 3: The device then presents you with the recovery seed, a string of 24 words. Write them down on a piece of paper and keep it safe as you will need it to access your private keys should you forget the pin or lose the device.

Step 4: Confirm you captured the recovery seeds correctly by verifying two random seed words. The device will ask you to confirm two random seed phrases.

Step 5: Download and install the Ledger Live desktop app from Ledger’s website. It serves as the app companion for ledger wallets and can work well on your phone too.

Step 6: Use Ledger Live app to install different crypto wallets to your hardware keeping in mind that Ledger Nano S limited memory only allows for the installation of between 3 to 5 crypto wallets at a time.

Sending and receiving coins:

To receive bitcoins from your other wallets or third parties, you need to first access your Ledger Live app:

Step 1: Say you want to receive bitcoins and already have a bitcoin account in your wallet. Start by scrolling through the device and find the B icon representing the Bitcoin account.

Step 2: Press both buttons to confirm the bitcoin account, and a wallet address will appear on the Ledger live app.

Step 3:  Send the wallet to the parties from whom you wish to receive bitcoins from

To send payments from your Ledger Nano S wallet, you still need to first access your Ledger Live app:

Step 1: Say you want to send Ethereum tokens. Scroll through the device and find the E icon symbolizing the Ethereum account.

Step 2: From the app, key in/copy-paste your receiver’s wallet address and the correct amount of Eth you wish to send

Step 3: Authorize the payout by long-pressing both buttons on your device simultaneously.

Ledger Nano S hardware wallet pros and cons:

Pros:

  • The wallet is highly secure, and there haven’t been any reported cases of a security breach.
  • Its straightforward setup process and ease of use makes it ideal for beginners.
  • Ledger Nano S is competitively priced at $59
  • The device’s small size makes it highly portable.
  • The Wallet supports a wide range of coins and tokens.

Cons:

  • Doesn’t support the highly secure passphrases
  • Has a relatively small device display that can’t fit the entire crypto address

Ledger Nano S Wallet compared to competitors:

The fact that Ledger Nano S hosts a wide range of security features and has never recorded a single security breach incidence makes it superior to most software and hardware wallets. It, for instance, is more secure than most web-based and software wallets in the sense that all its coins are held offline. And hackers can’t compromise or steal the crypto assets held therein. Even if they gained access to the Ledger Live app login details, payouts could only be initiated by pressing the device buttons.

Compared to two of its fiercest competitors in the hardware wallet niche, KeepKey, and Trezor, Ledger Nano S leads the path when it comes to affordability, reputation, and security. KeepKey may have never experienced a security breach, but it will only support about 40 crypto coins and tokens against Ledger Nano’s 700+. Trezor, On the other hand, has been around for close to a decade and claims to support 1000+ coins and tokens. It, however, recently suffered a massive security breach that tainted its reputation and deflated the crypto community’s confidence in its products.

Customer support:

Ledger hardware wallet providers can also be said to be doing a better job in customer support than most other hardware wallet companies. On their customer support page, for instance, you get to check and download free hardware updates and check the status of different crypto apps. And while they don’t maintain phone support, you get to interact with their responsive teams on different social media platforms.

Verdict: Is the Ledger Nano S Wallet worth buying?

There is a reason why Ledger Nano S remains the most popular crypto hardware wallet while maintaining the highest sales records. It is feature-rich, relatively inexpensive, and beginner and friendly. More importantly, it uses a proprietary OS to secure its wallets and has never recorded a security breach. We hold the opinion that Ledger Nano is worth buying and one of the must-haves for every crypto trader.

 

Categories
Cryptocurrencies

All You Need to Know About USDC 

The idea behind Bitcoin, the first cryptocurrency, was a digital currency that could facilitate payments in a peer-to-peer, secure, trustless, and decentralized environment. But Satoshi Nakamoto probably hadn’t foreseen the extreme volatility that would be associated with Bitcoin and indeed the entire crypto market.

The idea behind Bitcoin, the first cryptocurrency, was a digital currency that could facilitate payments in a peer-to-peer, secure, trustless, and decentralized environment. But Satoshi Nakamoto probably hadn’t foreseen the extreme volatility that would be associated with Bitcoin and indeed the entire crypto market.

The idea behind Bitcoin, the first cryptocurrency, was a digital currency that could facilitate payments in a peer-to-peer, secure, trustless, and decentralized environment. But Satoshi Nakamoto probably hadn’t foreseen the extreme volatility that would be associated with Bitcoin and indeed the entire crypto market.

The unpredictable nature of cryptocurrencies has made them best suited for speculative investment and trading, and ill-suited for day to day transactions – the original vision.

Stablecoins have been proposed as the solution to this – users can have the best of both Fiat and cryptocurrency. USDC, a Circle company creation, is one of the stablecoins that are adding value to users by providing a secure, predictable, and reliable cryptocurrency.

What are Stablecoins?

Stablecoins are a class of cryptocurrencies whose value is backed by an external asset. The idea behind stablecoins is to offer the price stability of Fiat currency while preserving the security and privacy offered by cryptocurrencies. A stablecoin can be pegged to a Fiat currency, another crypto asset, or a commodity. Other stablecoins mitigate volatility by controlling supply, much like central banks control the supply of natural currencies.

Ideally, a currency should possess the ability to be used for everyday transactions, including payments. But the extremely volatile nature of cryptocurrencies renders them unsuitable for such everyday use. For example, would you buy pizza today with Bitcoin Cash coins, not knowing if their value will increase tomorrow? In the same vein, would a merchant accept payment via the same coins, while knowing their value might drop the same day?

Stablecoins step in to solve this problem. Via these coins, users can transact with the confidence that the currency value is not going to be knocked tomorrow, and that their transactions are safe and private.

What is USD Coin?

USD Coin (USDC) is a stablecoin that’s pegged to the US dollar. Launched in September 2018, it’s based on the Ethereum network, and it’s an alternative to other stablecoins that are also backed by the US dollar, such as Stellar and TrueUSD (TUSD). USDC was launched as a collaboration between Circle, a peer-to-peer payments company, and Coinbase, the crypto exchange company.

How does USDC Work?

Every USD coin is backed by a US dollar, and tokenization is the process by which US dollars are turned into USD tokens. This process involves three steps:

  1. A user sends US dollars to the token holder/issuer.
  2. The token holder utilizes a smart contract to create USD coins equivalent to the amount of US dollars.
  3. The issuer sends the USDC to the user while keeping the US dollars in a reserve.

The process of redeeming USDC for USD is not very different:

  1. A user sends a request to the USDC issuer to redeem an equivalent amount in USD for USDC tokens.
  2. Issuer sends a request to the USDC smart contract to exchange the tokens for an equivalent amount in USD
  3. Issuer sends the USD to the user’s bank account. The user receives the sent amount, exclusive of all transaction fees.

Issuers of USDC are required to maintain and provide full disclosure of the reserve and liaise with financial institutions to maintain full reserves of the USD dollar.

How to Use USD coin

USDC is an ERC20 token, and hence it’s compatible with any ERC20-compliant application.  To get started on the Circle USDC platform, you need to sign up for an account and link it with your bank account. This allows you to do any of the following:

  • Tokenize US dollars
  • Redeem USD coins
  • Send and receive USDC to/from any Ethereum wallet address

It’s free to tokenize USD and redeem USDC. However, you will be charged a $50 fee for any erroneous or rejected bank transfers.

The minimum amount of USD coins you can redeem is 100, but you can tokenize as many US dollars as you want. Both transactions only take place on business days.

How Does USDC Differ from Other Stablecoins?

In order to identify which category of stablecoins USDC belongs to, we need to first identify the four categories of stablecoins:

i) Fiat-collateralized: these are stablecoins that are backed by Fiat currency, and are centralized by nature. Examples include Tether (USDT), Gemini Dollar (GUSD), and Paxos Standard Token (PAX).

ii) Crypto-collateralized: these are stablecoins that are backed by crypto assets. Examples include Makercoin (MKR) and Havven (HAV)

iii) Algorithmic non-collateralized: these are stablecoins that rely on a mechanically-generated algorithm that changes the supply of the token if need be so that the price remains stable in a volatile market. These stablecoins are modeled after how central banks regulate national currencies. Examples include Basis and Kowala.

iv) Hybrid: these are stablecoins whose model combines any of the above approaches. An example project is Carbon. 

USDC falls in the first category of stablecoins. Generally, these stablecoins differ only subtly in structure or governance, but the idea remains the same: the backing by a real-life asset or value.

Tokenomics of USDC

As of April 3, 2020, USDC is trading at $1, with a market cap of $690, 167, 043, and a 24-hour volume of $1, 066, 065, 241. Its circulating supply is a total of 688, 989, 269. USDC’s total supply is 694, 228, 227. The coin is also #18 in market cap.

 Where to Buy and Store USDC

USD Coin can be purchased from any of several popular exchanges, including Coinbase, Coinbase Pro, Binance, OKEx, Kucoin, Binance, CoinEx, Poloniex, and so on.

Some exchanges will let you buy directly with Fiat, while in other exchanges, you will need to exchange Fiat for crypto and then exchange it for USDC. Some common pairs include BTC, ETH, BNB, XRP, LTC, and DASH.

After you purchase your USDC, you can store it in any Ethereum wallet. Popular options include MyEtherWallet, MetaMask, and Jaxx wallets. You might also consider the safer option of a hardware wallet. Some popular options include Ledger Nano S and Trezor. 

Conclusion

USDC is only two years old but has already catapulted to the top 20 in market rank. Perhaps this is a testament to the currency’s individual strength and potential, or it’s a demonstration of the potential of stablecoins in general. Either way, USDC doesn’t look to be slowing down any soon, and its users can be assured of a stable and reliable cryptocurrency.

 

Categories
Cryptocurrencies

Mycelium Wallet Review 2020: Features, Fees & Ease Of Use

On the Mycelium website, the Mycelium wallet is referred to as the ‘Default Bitcoin Wallet.’ Probably because Mycelium is by far the oldest and one of the most reputable smartphone-based bitcoin wallets. Introduced to the market in 2008, Mycelium has undergone a raft of improvements and integrations to make it the safest Bitcoin storage hubs. Over time, the wallet has also gained the title of the most versatile wallet given the numerous third-party services it has safely integrated onto its network. But what sets it apart from the rest of the smart app wallets?

On the Mycelium website, the Mycelium wallet is referred to as the ‘Default Bitcoin Wallet.’ Probably because Mycelium is by far the oldest and one of the most reputable smartphone-based bitcoin wallets. Introduced to the market in 2008, Mycelium has undergone a raft of improvements and integrations to make it the safest Bitcoin storage hubs. Over time, the wallet has also gained the title of the most versatile wallet given the numerous third-party services it has safely integrated onto its network. But what sets it apart from the rest of the smart app wallets?

On the Mycelium website, the Mycelium wallet is referred to as the ‘Default Bitcoin Wallet.’ Probably because Mycelium is by far the oldest and one of the most reputable smartphone-based bitcoin wallets. Introduced to the market in 2008, Mycelium has undergone a raft of improvements and integrations to make it the safest Bitcoin storage hubs. Over time, the wallet has also gained the title of the most versatile wallet given the numerous third-party services it has safely integrated onto its network. But what sets it apart from the rest of the smart app wallets?

We answer this by looking at some of Mycelium wallet’s security features, ease of use, and proposed updates to the wallet’s functionality. We will also tell you if the mobile wallet truly lives up to its reputation.

Mycelium Key features

Smartphone-based: Mycelium is an app-based crypto wallet implying that it is compatible with both Android and iOS operating systems. It is hosted on a smartphone, effectively making it one of the most portable and easily accessible bitcoin wallets.

Integrates with hardware wallet: Mycelium wallet’s versatility makes it possible to integrate the mobile phone wallet with popular hardware wallets. These include KeepKey, Ledger Nano S, and Trezor.

Hierarchical Deterministic: The fact that Mycelium is an HD wallet implies that one can derive future bitcoin addresses from the master seed, easing the wallet recovery process.

Mycelium local trader: Unlike exchange backed wallets like eToro, Coinbase or BitMex, Mycelium is a stand-alone wallet. It nonetheless features a decentralized exchange-like marketplace that facilitates the exchange of bitcoins for fiat currencies between users. Dubbed the “Mycelium Local Trader,” the marketplace also features an end-to-end encrypted chat service.

Integration with third-party service providers: Mycelium bitcoin wallet partners with three main third party service providers Cashila, Glidera, and Coinpult. Cashila makes it possible for Mycelium users within the Euro SEPA zone to settle their bills. Glidera allows US and Canadian users to buy bitcoins with their bank balances. Coinpult, on the other hand, makes it possible for Mycelium users to hedge bitcoins against popular currencies like USD.

Security features

Pin code protection: After downloading the mycelium wallet app and installing it in your device, you will be asked to set a unique pin code. It prevents illegal access to your wallet and private keys and will be required every time you wish to log in, check balances, and confirm transactions.

12-word recovery seed: During the installation, Mycelium provides you with a 12-word recovery seed that you can use to reclaim your wallet. You will need to recover your bitcoin private keys should you lose the phone or forget the Mycelium bitcoin wallet password.

Watch-Only accounts: A watch only account allows for the storage of just the bitcoin address and not its corresponding private keys. You can then track the receivables into your wallet and monitor the coin balance while making it impossible to send out coins from the wallet even if hackers accessed your login details.

Military-grade encryption: The Mycelium bitcoin wallet encrypts your bitcoin address and private keys therein with the military-grade AES-256 bit encryption technology. The two are also never stored on the Mycelium servers.

It does not collect private data: Mycelium further commits to not collect sensitive personal information from its product consumers. It will only obtain your bitcoin address, location, nickname, and trade history while promising not to share it with any third parties.

Currencies supported

Mycelium is a bitcoin wallet and will, therefore, only support the legacy cryptocurrency. 

Integration with different third party services and the introduction of the Mycelium Local Trader have nevertheless made it possible for Mycelium users to exchange Bitcoins for fiat currencies like USD and Euro. If you want access to a huge number of currencies without losing access to your Mycelium wallet, consider integrating it with such hardware wallets as Ledger Nano and Trezor that support 1000+ crypto coins and tokens.

Mycelium wallet cost and other fees

You won’t be charged to download, install, and interact with the Mycelium bitcoin wallet. A transaction fee of between $2 and $7, however, applies every time you send bitcoins or seek to exchange your coins with fiat currency. The fee varies depending on the size of the transaction.

Setting up the Mycelium wallet:

How to install Mycelium one wallet:

Step 1: Download the Mycelium bitcoin wallet from the Google playstore for android users or the App Store for iOS smartphones and proceed to install the App.

Step 2: After the installation, open the wallet and select the “Create New Wallet.”

Step 3: The first step in creating a wallet is setting your PIN. This will be required for all future logins, memorize it.

Step 4: After confirming the PIN code, the wallet will provide you with the recovery seed made of 12 random words. Write them down on a piece of paper and keep it safe.

Step 5: You are now set and can start sending and receiving bitcoins or transacting in the Mycelium local trader.

Sending and receiving coins:

To receive funds into your Mycelium bitcoin wallet:

Step 1: Log in to your Mycelium bitcoin wallet and select receive bitcoins

Step 2: The page will display a QR code and your bitcoin address.

Step 3: Have the sender scan the code or send them the address.

To send payments from your Mycelium bitcoin wallet:

Step 1: Log in to your Mycelium bitcoin account and select the SEND option under the BALANCE tab of the wallet

Step 2: Paste the receiver’s bitcoin address you had copied to the clipboard or type it manually.

Step 3: Choose the currency – Bitcoin, USD, EUR – you wish to send and enter the amount

Step 4: Confirm the details authorize the payout using the PIN code.

Mycelium hardware wallet pros and cons:

Pros:

  • Mycelium presents its users with a wide range of features that ease its use.
  • Its open-sourced code has been vetted vigorously to seal all security loopholes.
  • One of the few wallets with an independent fiat-to-crypto exchange
  • Integrates with several third-party service providers
  • Compatible with popular hardware wallets

Cons:

  • The mobile wallet isn’t as secure as hardware wallets that store private keys offline.
  • Will only support bitcoin cryptocurrency.
  • Bitcoin investigators can use the information the wallet collects to reverse-trace a transaction.
  • Mycelium is a hot wallet and not immune to hacking, phishing, and malware corruption threats.

Mycelium wallet compared to competitors:

Mycelium may be referred to as the default bitcoin wallet, but recent years have seen the offshoot of several smartphone crypto wallets like Jazz and Cryptonator. Unlike the two, Mycelium is open source, which gives an upper edge when it comes to the security and integrity of the mobile wallet. The two, however, take advantage of Mycelium’s rigid approach to the crypto market by supporting multiple digital currencies as Mycelium sticks to Bitcoin. One may also consider the Jazz wallet’s user interface quite friendlier. 

Upcoming ‘massive upgrades’

On their website, Mycelium argues that while their wallet has, for the longest time, been a great tool for Bitcoin users, its time to share this goodness with everyone else. To make this possible they have come up with a raft of proposed upgrades to the bitcoin wallet including:

  • Integrating inexpensive remitters
  • Introducing wallet-linked and in-wallet-issued debit cards
  • Escrow protected bets and transactions.
  • More efficient hedging and investment portfolios

Customer support:

Mycelium’s customer support starts with a relatively expanded FAQ page on their website. Wallet users can also ask for assistance by opening a support ticket or contacting them on the different Mycelium social media pages. Mycelium, however, doesn’t offer phone support.

Verdict: Does Mycelium live to its reputation?

Despite the entry of numerous smartphone-based crypto wallets into the play, Mycelium remains one of the most popular. Some of the factors giving it a competitive advantage include its ease of use, inexpensive transaction fees, and a proven track record of keeping client private keys secure. While we fault its decision to stick to bitcoin transactions despite there being over 1000 cryptocurrencies today, we still believe that it is worth having.

Categories
Cryptocurrencies

MyEther Wallet Review 2020: Features, Fees & Ease Of Use

On their website, MyEther refers to their web-based wallet as ‘Ethereum’s Original Wallet,’ specially designed to help individuals keep their private keys safe and interact with the Ethereum blockchain. Commonly referred to as the MEW Wallet, the open-sourced platform was designed to help crypto investors and traders manage their Ethereum and ERC-20 tokens. And despite the fact that it is a hot web-based wallet, it continues to enjoy massive popularity within the crypto community.

On their website, MyEther refers to their web-based wallet as ‘Ethereum’s Original Wallet,’ specially designed to help individuals keep their private keys safe and interact with the Ethereum blockchain. Commonly referred to as the MEW Wallet, the open-sourced platform was designed to help crypto investors and traders manage their Ethereum and ERC-20 tokens. And despite the fact that it is a hot web-based wallet, it continues to enjoy massive popularity within the crypto community.

On their website, MyEther refers to their web-based wallet as ‘Ethereum’s Original Wallet,’ specially designed to help individuals keep their private keys safe and interact with the Ethereum blockchain. Commonly referred to as the MEW Wallet, the open-sourced platform was designed to help crypto investors and traders manage their Ethereum and ERC-20 tokens. And despite the fact that it is a hot web-based wallet, it continues to enjoy massive popularity within the crypto community.

In this MyEther Wallet review, we will be seeking answers to what draws crypto users to the wallet. We will vet the crypto wallet’s features, security, cost, and ease of use before telling you if it is fit for use.

MyEther Wallet Key features

Web-based: MyEther Wallet is a hot, online-based crypto wallet that stores your private keys in your PC, mobile app, or offline in a USB Drive.

Launched a mobile app: MyEther wallet recently launched a mobile application for both Android and iOS users, dubbed MEWconnect. It has all the features and benefits of the MyEther app, with the added advantage of being available on the move.

Access to Ethereum blockchain: Unlike most crypto wallets that will only give you access to a storage unit for your digital assets, MyEther gives you access to the Ethereum blockchain network. You can also use the app to exchange Ethereum based coins and interact with all the network features like smart contracts, Decentralized apps, and ENS as well as sign and verify messages.

Compatible with hardware wallet: MyEther crypto wallet will also integrate with all popular hardware wallets like Ledger Nano, Trezor, and KeepKey. This not only adds an extra layer of security to the company but also makes it possible for you to hold more than just the Ethereum based coins and tokens.

Offline transactions: The MyEther crypto wallet is unique in the sense that it is available for offline transactions. You do not need to be online to send or receive different coins and wallets to the wallet.

Save private keys offline: Since its establishment, MyEther crypto wallet has undergone several operational and security adjustments. One of these is the ability to store private keys offline. Instead of maintaining your private keys over the cloud, you can now save them offline in a flash disk or written in a piece of paper.

Compatible with popular browsers: MyEther wallet is also compatible with all the popular browsers, including Firefox, Chrome, and Brave. You can access your ether wallet via MyEther wallet website or the different browser extensions.

Compatible with exchanges: You can also integrate the MyEther wallet with different crypto exchanges, including Changelly, that allow you to buy and sell your digital assets for other crypto or fiat currencies.

Security features

Password protection: Like most other online and offline crypto wallet, MyEther has a password as the foremost form deterrence against authorized access to the private keys stored therein. You will need to set this password during the wallet installation and activation stage.

Recovery Keystore: In addition to the password is yet another security layer that – the Keystore recovery seed. It’s a set of words generated by the wallet during setup, and it comes in handy should you forget your password.

Open-sourced technology: MyEther has open-sourced the technology used to develop this crypto wallet. This has encouraged cryptocurrency and bitcoin enthusiasts to vet it exhaustively and come up with security improvement recommendations that have helped make it one of the most secure web-based wallets.

Highly encrypted: MyEther wallet further encrypts the private keys and addresses stored in your crypto wallet as well as its associated passwords. This keeps the private keys stored therein safe from malware.

Does not collect private data: In yet another privacy approach, MyEther crypto wallet collects no more of your personal information than is necessary. The crypto wallet company further provides its clients with the assurance of not sharing this data with third parties.

Currencies supported

MyEther is an Ethereum wallet that will only support Ethereum, Ethereum Classic, and ERC 20 coins and tokens. Its compatibility with numerous hardware wallets like Ledger Nano and Trezor that support 1000s of coins has, however, expanded the wallet’s currency support exponentially.

MyEtherWallet wallet cost and other fees

You will not be charged a fee for downloading, installing, and interacting with MyEther wallet or the MEWconnect smartphone app.

MyEther is also one of the few crypto wallets that won’t impose fees for cryptocurrency transactions conducted within its platform. You will only have to pay negligible fees that go straight to Eth miners and not the platform itself.

The minimum fee for a transaction is usually 0.000441 Ether, but you can always choose custom fees if you wish to have your transaction processed in the shortest time possible. For acceptance into the next block, you pay 40 GWEI, acceptance into the next few blocks costs 20 GWEI, while acceptance within the next few minutes costs 2 GWEI.

*Note: 1,000,000 GWEI = 0.001 ETH

Setting up the MyEther Wallet :

How to install MyEther Wallet:

Step 1: Start by accessing the MyEther crypto wallet website and selecting the create new wallet option.

Step 2: On the next page, you will find a small tutorial on how to engage with the MyEther wallet. You can view the tutorial or simply skip.

Step 3: Next is the create a new wallet page that gives you the option of creating the wallet online or via the smartphone app.

Step 4: If you choose to create an account online, you first need to create and verify your wallet password before generating the recovery seed. If you chose the MEWconnect smartphone app, you have to start by downloading the app from the MyEther website, proceed to create a password, after which the app will provide you with the recovery seed.

Step 5: Save your recovery seed to your PC or USB

Sending and receiving coins:

To Send tokens from your MyEther Wallet:

Step 1: Open the web-based wallet account and click “Send Ether &Tokens.”

Step 2: Choose the payment account i.e., your private keys or connected hardware wallets

Step 3: Paste the wallet address, number of tokens you wish to send, and GAS.

Step 4: Click ‘Generate Transaction,” confirm recipient details and verify the transaction.

To receive payments into your MyEther Wallet:

Step 1: Log into your MyEther wallet.

Step 2: Click on the “Receive Ether & Tokens” tab to get your receiving address.

Step 3: Send the address to whoever is sending you the coins

Step 4: Receive Ether and supported ERC 20 tokens from

MyEther Wallet pros and cons

Pros:

  • Its open-source protocol keeps it highly secure and ahead of the competition.
  • The wallet is compatible with most hardware wallets, including Trezor and Ledger Nano.
  • The wallet supports both online and offline transactions.
  • New privacy settings make it possible to store your wallet’s recovery phrase heavily encrypted offline on PC or USB disk.
  • MyEther wallet is also compatible with such exchanges as Changelly making the transfer of funds and currency conversions relatively easy.

Cons:

  • MyEther is a hot wallet, and this exposes it to possible hacking and phishing attacks.
  • One may consider the MyEther app relatively complicated to set up and use
  • Will only support Ethereum and ER20 tokens, leaving behind popular currencies like Bitcoin.
  • The web-based wallet isn’t as secure and hard to breach as the hardware wallets.

MyEther Wallet compared to competitors:

MyEther ranks fairly when compared to such other online wallets as Coinbase and eToro. These two are exchange linked and have two key advantages over MyEther. First, they are exchange linked and therefore expose the trader to more trade and investment opportunities. Secondly, they support all the popular coins and currencies and even host initial coin offerings. Unlike the two, however, MyEther wallet’s protocol is open source, making it safer and more secure, plus it also has both online and offline transaction processing features.

Customer support:

MyEther has an elaborate and detailed FAQ page, as well as tutorial videos that explain how the site works in detail. Their website is also available in both English and Russian languages. They also have a live chat tool on the website and are easily accessible the different social media platforms.

Verdict: Does MyEtherWallet live to its reputation?

MyEther Wallet is one of the safest and most versatile web-based Ethereum blockchain wallets available today. Some of its key strengths lie in its compatibility with several hardware wallets that complement its security and the number of cryptos and tokens it can support. It also is one of the few crypto wallets with a companion smartphone app, both of which give you access to not just the wallet but the Ethereum blockchain. It, therefore, is our opinion that while its online nature puts it at a higher risk of hacking and phishing attacks than hardware wallets, it still is a reputable wallet and fit for beginners and active traders looking for a wallet that allows for fast transaction processing.

Categories
Cryptocurrencies

What Determines The Price Of One Bitcoin?

Bitcoin is the most dominant cryptocurrency out of the thousands that exist today. It is the largest in market cap, and it pretty much influences investor sentiment about the rest of the cryptocurrencies. Bitcoin was created by a mysterious developer with the pseudonym Satoshi Nakamoto. 

Bitcoin is the most dominant cryptocurrency out of the thousands that exist today. It is the largest in market cap, and it pretty much influences investor sentiment about the rest of the cryptocurrencies. Bitcoin was created by a mysterious developer with the pseudonym Satoshi Nakamoto. 

Bitcoin is the most dominant cryptocurrency out of the thousands that exist today. It is the largest in market cap, and it pretty much influences investor sentiment about the rest of the cryptocurrencies. Bitcoin was created by a mysterious developer with the pseudonym Satoshi Nakamoto. 

Bitcoin transactions i.e., buying, transferring, spending of bitcoins, are recorded on a public blockchain. Its transactions are pseudonymous, that is, a user’s personal credentials are not publicly displayed, but their public address/key is. This public address can be used to trace the owner of a transaction if need be.

Unlike conventional currency, Bitcoin is not issued by a central bank or rallied by the state. As such, monetary policies, interest rates, inflation, and so on do not apply to Bitcoin. 

Curious Bitcoin investors may thus be gnawed by this question:

What is it that determines the price of Bitcoin?

Several factors determine its valuation, and we’ll look at each below: 

Supply and Demand

Before we look at the supply and demand of Bitcoin, we need to look at what partially determines the supply and demand of fiat currency. Actions like adjusting the discount rate, Lowering or raising the reserve ratio, and so on can impact a country’s currency exchange rate.

Now the supply of Bitcoin is determined by other factors. To begin with, new bitcoins are generated at a fixed rate through a process known as mining. Mining involves verifying and confirming blocks of transactions and adding those transactions on the blockchain. The Bitcoin protocol is designed in a manner that the coins released into circulation will reduce over time. For instance, coins were generated at a rate of 6.9% in 2016, and this reduced to 4.4% in 2017 and to 4.0% in 2018. As fewer coins are released, demand increases. Demand being higher than supply will result in the price going up. 

Secondly, the supply of Bitcoin may be determined by the number of coins the system is programmed to allow. Bitcoin’s supply is capped at 21 million. When this number of coins has been generated, mining will no longer create new coins. Already, Bitcoin’s supply has reached 18.1 million – this represents 86.2% of the crypto’s supply at that particular time. 

Once we reach 21 million coins, the price of Bitcoin will depend on several factors. For instance, will it be a practical currency, i.e., usable in day-to-day transactions? Will it be legally recognized? Will it be in demand – which will be determined by the demand for cryptocurrencies in general? The controlled generation of bitcoins will no longer have an impact on its price.

Competition

Bitcoin may be the most important and recognized cryptocurrency, but there are thousands more vying for the world’s attention. As of March 2020, Bitcoin is still leading the pack in terms of market capitalization – but other cryptocurrencies are giving it a run for its money. Some of them aim to outdo Bitcoin in one functionality or another – either by solving a problem that bitcoin cannot solve, or improving a certain functionality, or being more innovative. 

Cryptocurrencies such as Ethereum, EOS, Litecoin, Ripple, Tether, and Binance coin are some of its closest competitors. Besides, there are few barriers to entry into the crypto space, and new cryptocurrencies are constantly making the news. However, Bitcoin still maintains the highest visibility for any cryptocurrency. This gives it a certain clout and an edge over the competition. 

Cost of Production

Bitcoin is a virtual currency, but its production is not very different from other products that incur a real-life cost. Bitcoin is famous for consuming electricity, the equivalent of entire countries. Generation of new coins – or ‘mining’ involves miners solving complicated math problems – with the first miner to solve the puzzle being rewarded with bitcoins and a fraction of transaction fees. 

But Bitcoin, unlike other produced products, has an algorithm that allows only one block to be found every ten minutes. This means that the more miners in the network, the more difficult it is to find the answer to the puzzle. This means more energy is consumed in the process. 

It also means the more producers (miners) that join in the competition, the more the problem is difficult – and thus more expensive – to solve. Research has demonstrated that Bitcoin’s price is indeed tied to its cost of production.

Availability on Crypto Exchanges

Very much like how equity investors trade stocks and bonds over stock exchanges, crypto investors also trade crypto-currencies over cryptocurrency exchanges like Coinbase Bitfinex, Binance, Poloniex, Coinmama, Bitpanda, and so on. Also, just like the traditional exchanges, Crypto exchanges allow investors to trade crypto in pairs, e.g., Bitcoin/Ether (BTC/ETH). 

The more popular an exchange is, the more traders and investors it draws. This increases market liquidity for currencies listed on the exchange, increasing their demand. Also, since these exchanges operate in jurisdictions where they are regulated, the presence of, let’s say, Bitcoin, implies regulatory compliance, rendering Bitcoin a legitimate currency in the eyes of the public and potential investors. This matters because the legal standing of cryptocurrencies is currently sort of in a gray area.

Regulation and Legal Matters

Bitcoin and other cryptocurrencies have become so popular that regulators are not sure how to classify them. For example, the Securities and Exchange Commission (SEC) classifies the digital assets as Securities, while the US Commodity Futures Trading Commission (CFTC) classifies them as commodities. This confusion over what kind of assets cryptocurrencies are, as well as the tumble over which regulator gets to set the rules, creates uncertainty that impacts the value of cryptocurrencies. 

Also, the finance market is now witnessing the introduction of new financial products – such as exchange-traded funds futures and other derivatives that use Bitcoin as the underlying asset. 

This impacts the price of Bitcoin. First, it expands bitcoin’s access to investors who could not afford to buy it. This increases Bitcoin’s demand. Secondly, it can mitigate the volatility of Bitcoin, since institutional Bitcoin derivatives’ investors can use their massive resources and market influence to bet on which direction Bitcoin’s price will move.

Governance Stability (or lack of) and Forking 

Bitcoin is a decentralized and autonomous network – meaning it’s not governed by any single entity. As such, it relies on network participants to process transactions and protect the network. Any updates to the Bitcoin protocol are done only after consensus is reached, meaning issues take longer to resolve as opposed to a centralized system where decisions are made by those at the top and implemented as quickly as possible. This is frustrating for the community and might cause many people to invest in other cryptocurrencies.  

Bitcoin’s scalability issue is another problem. Any blockchain’s volume of transactions depends on the size of the block, and Bitcoin’s current 1MB block size severely limits the number of transactions that can be processed in one second. This wasn’t an issue before cryptocurrencies became hugely popular, but the slow transactions on Bitcoin might push people towards cryptocurrencies with a faster transaction time. 

Bitcoin enthusiasts have been at loggerheads over how to best increase the speed of transactions. This can be achieved via one of two types of software updates – which are called forks. Soft forks constitute rules or updates that do not permanently split the blockchain and result in a new cryptocurrency. Hard forks constitute a permanent split of the blockchain and, with it, the birth of a new cryptocurrency. The Bitcoin blockchain has previously undergone hard forks that resulted in Bitcoin Cash and Bitcoin Gold cryptocurrencies. 

Hard forks do not just split the blockchain; they also split the community. The Bitcoin Cash fork was particularly acrimonious. When events like these happen, they splinter a cryptocurrency’s user base, which is also the investor base. This can reduce demand for that cryptocurrency, lowering its price. It can also negatively affect investor sentiment, which has the same effect. 

Conclusion

Now that you know how the Bitcoin price comes to be, you’re better placed to know how certain events, either internal or external, to Bitcoin, affects its price. And while no one can accurately predict the exact price of the currency, at least you can foresee potential movements in its price long before it happens. This can help you know better decide if to buy or sell. 

Categories
Cryptocurrencies

What Is The Impact Of Cryptocurrencies On The Environment?

Cryptocurrencies came, saw, and disrupted the financial space – despite many predictions about their impending doom. They were labeled as a fad and as tools for enabling criminal activities.  But in a rally led by Bitcoin, cryptocurrencies have established themselves as legitimate and a force to be reckoned with in the finance space. 

Cryptocurrencies came, saw, and disrupted the financial space – despite many predictions about their impending doom. They were labeled as a fad and as tools for enabling criminal activities.  But in a rally led by Bitcoin, cryptocurrencies have established themselves as legitimate and a force to be reckoned with in the finance space. 

Cryptocurrencies came, saw, and disrupted the financial space – despite many predictions about their impending doom. They were labeled as a fad and as tools for enabling criminal activities.  But in a rally led by Bitcoin, cryptocurrencies have established themselves as legitimate and a force to be reckoned with in the finance space. 

However, digital assets still face criticism. One withering take was by Agustin Carstens, General Manager of the Bank of International Settlements, who called Bitcoin a combination of a bubble, a Ponzi scheme, and an environmental disaster.  

While the first two indictments are flat-out untrue, the third one deserves a closer inspection. Serious questions have been raised about the impact cryptocurrencies wield on the environment. 

Are cryptocurrencies power-hogging monsters, or is it a hollow indictment?

Cryptomining and More

The vast majority of cryptocurrencies have taken the model of Bitcoin, the first and the most successful cryptocurrency.  Bitcoin is a decentralized token, meaning it is not controlled or regulated by any bank or government. Instead, new coins are generated via ‘mining,’ a process in which computers across the globe solve complicated mathematical puzzles and earn some coins or a fraction of the transaction fees as a reward. 

The Bitcoin network is supported by blockchain technology – which includes a publicly distributed ledger that maintains a record of all transactions.  Transactions are in the form of blocks, which in turn are linked together and secured using cryptography. All records on the blockchain are shared across all users on the network – no matter where they are.

Cryptocurrency proponents content that the asset provides a unique alternative to the current financial system due to its cryptographically secured and anonymized infrastructure.  However, alarm bells have been ringing over the massive amounts of energy that goes into maintaining and generating new crypto coins.  

In a research by Digiconomists – a cryptocurrencies analysis site, titled “Bitcoin Energy Consumption Index,” Bitcoin used 32 terawatts of energy annually.  This energy could support nearly 3 million US households. Bitcoin also consumed more energy than Visa uses to process billions of transactions in a year. According to the site, the energy that Visa uses can power just 50, 000 US households.

Another concern has been that as cryptocurrencies gain more popularity, and their value increases, they require even more energy. For example, as Bitcoin increases in value, the computational puzzles become more difficult to solve, hence requiring more energy.

Cryptocurrencies and Fossil Fuels

The conversation about cryptocurrencies and the environment has taken another turn.  Environmentalists are concerned that cryptocurrencies are slowing down the effort to extract ourselves from the fossil fuels rabbit hole.

The vast amount of Bitcoin mining happens in China, where mining companies have set up huge mining operations in rural areas that have low-cost land and electricity.  Researchers from the University of Cambridge have called attention to the fact that much of the electricity being consumed in the mining rigs comes from abandoned coal-based power plants. 

Digiconomist also noted that the energy used by one Bitcoin mine in Inner Mongolia is equivalent to the energy required to fly a Boeing 747.

If you have been paying attention to the news, you must have noticed that burning coal and other fossil fuels massively contributes to the global carbon dioxide footprint, intensifying climate change.

What Do Miners Say?

Crypto miners have taken a defensive stance in the whole debate. They argue that crypto mining’s impact on the environment is nothing compared to that of physically extracting oil and other natural resources. 

Other miners have taken up more environmental-friendly strategies for their mining operations. An example is Vienna-based Hydrominer, a mining company that uses renewable hydroelectric power. The company’s co-founder, Nadine Damblon, however, thinks that the conversation is overblown. “Basically, we see an old argument here. People used to say that the streets would no longer be usable because they would be covered in horse manure -not long ago they said Google search engine would use up all the world’s energy.” 

She opines that as cryptocurrency evolves and develops, so will more energy-efficient technology be discovered. For her part, she’s already taken a step to employ a more eco-friendly mining process.

What Is Our Current Environmental Impact?

It’s fair to say that the impact of cryptocurrencies on the environment have been grossly exaggerated, especially when you compare it to how the current banking system consumes energy. 

In a 2014 study, Hass McCook, a bitcoin enthusiast, argued strongly for Bitcoin, stating: “Widely available public information strongly refutes claims that bitcoin is unsustainable, and shows that the social, environmental and economic impacts are a minuscule fraction of the impact that the legacy wealth and monetary system have on our society and environment.”

Right now, these are some of the biggest energy consumers in the current banking system: 

  •         24/7 server operations
  •         24/7 office towers 
  •         Cost of running ATM machines 
  •         Card readers 
  •         Data centers 
  •         Cost of running banks such as computer costs, air conditioning, and so on 

It’s worth noting that this list is by no means exhaustive. The use of a much more efficient system, cryptocurrency, would eliminate most of these and other hidden costs.

Who is Right?

Between overly conscious environmentalists and defensive miners, who is right in this debate? First of all, it’s important to note that although crypto mining gobbles up massive energy, analysts have not really arrived at a conclusion on the exact figures. 

Also, some people argue that the benefits of cryptocurrencies, including operational efficiency and their deflationary nature, outweighs the environmental toll.

A thorny issue in this debate has been the difficulty involved in trying to measure the exact environmental impact. This is partly because most currencies are either anonymous or have a degree of anonymity – making it difficult to generate a reasonable estimate of the energy they actually use.

But one analyst believes that the figures bode ill. Alex de Fries, a Bitcoin analyst, suggested in January 2018 that even the most energy-efficient mining Rings would still consume about 13 terawatts in total.  He said that that is the amount of energy that Slovenia uses. He painted a possible scenario where the machines in use are not as efficient as possible – in which case the energy used would be much higher – and even multiply as more miners jump into the bandwagon. 

De Vries’ view on the issue is largely uncompromising, suggesting that we don’t even need Bitcoin in the first place. “We are basically consuming thousands of times more energy for something we can already do at the moment. We can already do transactions, we don’t have to use Bitcoin if we trust our current system. I don’t see how Bitcoin justifies its energy use at the moment, given that most people do have a certain level of confidence in the current system.”

Closing Thoughts

Do cryptocurrencies pose a threat to the environment, or is the issue greatly exaggerated? As we have seen, the legacy banking system is not exactly as pure as snow. Cryptocurrencies present a safer, more trusted, and a faster way to conduct transactions.  They are disruptive, no doubt, but that does not mean that they are evil. And as the technology continues to evolve, more energy-efficient means will most certainly be adopted.

As for now, it can be said that the whole fuss about how cryptocurrencies are harming the environment is a lot of ado about little. This doesn’t mean that the crypto industry is exempt from environmental responsibility; it will have to come up with more environmentally conscious mining processes.

Categories
Cryptocurrencies

Why you Should Consider Staking Cryptocurrencies

The most popular way to make money in the crypto industry is trading or mining. But recently, the two methods are proving difficult due to unprecedented market trends and the high electric power consumption associated with mining. 

The most popular way to make money in the crypto industry is trading or mining. But recently, the two methods are proving difficult due to unprecedented market trends and the high electric power consumption associated with mining. 

The most popular way to make money in the crypto industry is trading or mining. But recently, the two methods are proving difficult due to unprecedented market trends and the high electric power consumption associated with mining. 

Unknown to many, you can earn passive income from owning and holding a digital currency in a wallet for a fixed period of time. It’s pretty much like saving money in a fixed deposit account. The longer the money stays in the account, the more interest you earn. What makes coin staking even more lucrative is the fact that you can reinvest your earned coin tokens to reap more returns. So, you don’t have to study complex price charts or try to time the market. You earn guaranteed income regardless of market highs and lows. 

How the Coin Staking Process Works

Cryptocurrency staking is derived from the “Proof-of-Stake” (POS) algorithm. See, in the case of Proof-of-Work, the creation of new blocks, as well as validation of transactions, relies on solving complex mathematical calculations. This process relies heavily on the mining power of a GPU/CPU, which is why it’s an expensive method. The higher the mining power, the more coins rewards a miner earns. 

Rather than using expensive mining hardware, POS validates transactions and generates new blocks using coins stored in a wallet (network nodes). It’s important to note that not every coin holder is chosen to validate a transaction. Usually, users who have staked significant amounts of coins stand a better chance of being chosen as the next validators. 

Alternatively, you may consider joining a staking pool to increase your chances of validating new blocks and earning coin rewards. Basically, a staking pool works by merging resources of several coin holders to form a stronger staking power. The block rewards are then shared proportionally to an individual’s contribution. 

Advantages and Disadvantages of Coin Staking

In addition to being a more energy-efficient way of earning more coins, crypto staking also offers a wide range of benefits, including: 

☑️Protected Value

The coins mined using computational power risk losing their value over time due to the use of the mining hardware and ASIC. On the other hand, coins earned through staking do not increase or appreciate in value with time. Their value can only fluctuate with the market trends. 

☑️Reduces Centralization Risk

Coin staking eliminates the need for owning expensive mining equipment and other entry barriers such as the technical know-how and knowledge of the market patterns. This is especially the case with staking pools where the entry requirements are relatively low. As such, it offers an opportunity for more investors to join the network, thereby decentralizing its control. 

☑️Enhanced Security

Besides staking cryptos on an online wallet, there are a couple of blockchain networks that allow investors to stake coins in their cold wallets. This method is commonly known as cold staking, and it goes a long way into securing your earnings. Cold staking is particularly useful to stakeholders with large amounts of coins that would otherwise be susceptible to theft if stored in an online wallet.

☑️Reduces the Chance of a 51% Attack

The 51% attack is a common problem in the Proof-of-Work algorithm, where coin rewards are earned through mining. The attack refers to a case whereby a user or group of users controlling the majority of the mining power end up monopolizing the creation of new blocks. As such, they prevent the small-scale miners from completing blocks, which in turn denies them coin rewards. Besides reversing transactions, such attacks also lead to the outflow of small-scale miners as well as a decline of the coin’s value. 

Thanks to the Proof-of-Stake improved architecture, it’s almost impossible for one party to earn extra profits and become the majority holder. Even in the event where a perpetrator succeeds in controlling the largest share, the community can coordinate a hard-fork and delete the offending validator’s holdings. As a result, the price of the coin may increase due to the supply crunch. 

The only drawback of staking cryptocurrencies is that you’ll need to lock them for a fixed period without using them. In a bullish market, locking your coins for long may not be a huge problem. The problem occurs in bearish market conditions, especially when the amount earned through staking is not enough to cover the price depreciation. As such, it makes sense to stake a specific amount of coins depending on your risk tolerance. 

How to Get Started Staking Cryptocurrencies

Staking cryptocurrencies may sound easy and straightforward in theory, but it actually demands a considerable degree of input if you’re to make any reasonable returns. 

i) Choose a Coin to Stake

Finding a good Proof-of-Stake coin requires extensive research of the crypto market. At first, you may easily be lured by POS coins offering the highest percentage of returns. Usually, such coins end up being saturated in the market, making it hard for your stakes to maintain their value. Also, due to their high supply in the market, these coins tend to require a huge financial investment for one to begin staking. 

An ideal POS coin strikes a good balance between returns and the initial investment required. This way, it’s able to maintain a steady value making it suitable for generating passive income rather than being a speculative investment. 

ii) Determine the Minimum Requirements

All POS coins have a minimum number of tokens required in order to begin staking. Dash, for instance, requires about 1000 DASH coins while ETH requires not less than 32 coins. This amount can be brought down to attainable limits by joining a staking pool. But you should be prepared to pay a certain percentage of your rewards to the pool provider as payment for the service. 

Alternatively, you can also invest in coins such as PIVX, NEO, and PART that don’t require a minimum investment amount. However, they don’t pay as well as their counterparts. 

iii) Hot or Cold Staking

For those coins that require staking in an online wallet, you’ll need around-the-clock connection to the internet. A standard computer might serve you just right, preferably one that consumes less power. Small single-board computers such as Raspberry pi and PocketBeagle can also get the job done and even save much more on power bills. 

Cold staking is the best alternative if you want to eliminate the power and internet bills entirely. Coins staked in a hardware wallet are also safer than those in a hot wallet. 

Conclusion

As market volatility and the high cost of mining continues to turn away investors, coin staking is finding its place as an alternative method of earning income from the crypto market. Most importantly, through its long-term approach, coin staking puts the crypto-space on the road to maturation as more investors welcome the idea of earning returns from staking. 

Categories
Cryptocurrencies

Keepkey Hardware Wallet Review 2020: Is It Safe And Reliable?

On the KeepKey website, this USB-like crypto hardware wallet is described as the ‘next frontier of crypto security.’ But the Keepkey wallet is better known for its sleek design, especially its unique full OLED screen on the side of the USB that’s wide enough to fit the entire crypto address. Notably, the coin has also gained massive popularity by virtue of having Ken Hodler, a renowned crypto industry expert, as its Chief Engineer.

On the KeepKey website, this USB-like crypto hardware wallet is described as the ‘next frontier of crypto security.’ But the Keepkey wallet is better known for its sleek design, especially its unique full OLED screen on the side of the USB that’s wide enough to fit the entire crypto address. Notably, the coin has also gained massive popularity by virtue of having Ken Hodler, a renowned crypto industry expert, as its Chief Engineer.

On the KeepKey website, this USB-like crypto hardware wallet is described as the ‘next frontier of crypto security.’ But the Keepkey wallet is better known for its sleek design, especially its unique full OLED screen on the side of the USB that’s wide enough to fit the entire crypto address. Notably, the coin has also gained massive popularity by virtue of having Ken Hodler, a renowned crypto industry expert, as its Chief Engineer.

But does this hardware wallet live up to its reputation? We answer this by looking at its key features, security, and design in this KeepKey review. We will also look at how the hierarchical deterministic wallet fairs in the face of its peers with regards to ease of use and tell you if it is a reliable crypto store for your digital assets.

KeepKey Key features

  • Wide screen: KeepKey has one of the largest OLED displays that allows you to view the entire cryptocurrency address without scrolling.
  • Shapeshift integration: KeepKey hardware crypto wallet was developed by KeepKey in 2015 and proceeded to acquire Multibit, a bitcoin wallet company, in 2016. In 2017, KeepKey was acquired by Shapeshift and currently serves as the native hardware wallet for the crypto exchange. The integration makes trading and investment easy due to the ease of moving your assets in and out of the exchange.
  • Compatible with all OS types: The KeepKey wallet is also compatible with all the popular operating systems, namely Windows 8+, macOS 10.8+, and Linux. It is also compatible with Android smartphones and features a Google Chrome extension.
  • Software wallet integration: KeepKey integrates with such software wallets as MultiBit and Electrum, as well as the smartphone-based Mycelium for the smooth transfer of digital assets.
  • Sleek design: KeepKey has a smooth, sleek, and well-thought design crafted with the need to appeal and boost wallet security in mind.

Security features

First, in its long line of security features is the fact that KeepKey hardware crypto wallet stores your private keys offline. Additional security measures like:

☑️Pin code protection: The KeepKey hardware crypto wallet is pin protected. You get to set the pin during the wallet setup and will be required every time you want to access the wallet, view crypto balances, and initiate a transaction. 

☑️Number randomization: The number randomization feature of the KeepKey wallet randomly shuffles the PIN numbers from time to time to prevent malware from copying your code and using it and gaining access to your digital assets.

☑️Recovery sentence: The private keys for all your cryptocurrencies are stored in and will not leave the hardware crypto wallet. During setup, however, KeepKey provides you with a recovery seed of 12-24 words unique to your device that you can use to retrieve the private keys in case the hardware wallet is stolen, lost, or damaged.

☑️Passphrase: In addition to the pin code and the recovery word, KeepKey also provides you with the option of a passphrase that you can attach to the recovery phrase. Unlike most of the other KeepKey security features, however, passphrase doesn’t have a recovery, and losing it may mean the forfeiture of your private keys. The company, therefore, advises its KeepKey wallet users to only use this feature if they understand the consequences of its use.

☑️Physical button: KeepKey hardware wallet also has one button that comes in handy during the setup stage but also doubles up as a security tool. Every transaction involving the private keys in your wallet has to be authorized by long pressing this button. It ensures that even if a hacker was able to remotely access your wallet, they wouldn’t be able to transfer your digital assets as long as you have access to the device.

☑️Desktop app: The KeepKey wallet has a digital app that is vital during the setup process by completing the single button on the wallet.

Currencies supported

KeepKey supports the seven most popular cryptocurrencies available today that include Bitcoin, Litecoin, Dogecoin, Bitcoin Cash, Dash, Bitcoin Gold, Ethetreum, and DigiByte. In addition to these, the wallet supports over 40 ERC-20 tokens and coins, including Tether and TrueUSD stable coins. The numbers are too low when compared to equally competitive wallets that support 1000s of coins and tokens.

  •         AELF (ELE)
  •         Aeterenity (AE)
  •         Aragon (ANT)
  •         Augur (REP)
  •         Basic Attention Token (BAT)
  •         Binance Coin (BNB)
  •         Bancor (BNT)
  •         Civic (CVC)
  •         Storj (STORJ)
  •         com (MCO)
  •         CyberMiles (CMT)
  •         Dai (DAI)
  •         Decentraland (MANA)
  •         DigixDAO (DGD)
  •         District0x (DNT)
  •         Edgeless (EDG)
  •         FirstBlood (1st)
  •         FunFair (FUN)
  •         Gifto (GTO)
  •         Gnosis (GNO)
  •         Golem (GNT)
  •         ICONOMI (ICN)
  •         IOST (IOST)
  •         iExec (RLC)
  •         TrueUSD (TUSD)
  •         Maker (MKR)
  •         Matchpool (GUP)
  •         Melon (MLN)
  •         Metal (MTL)
  •         Numeraire (NMR)
  •         OmiseGO (OMG)
  •         Polymath (POLY)
  •         Populus (PPT)
  •         Ripio Credit Network (RCN)
  •         SALT (SALT)
  •         SingularDTV (SNGLS)
  •         SpankChain (SPANK)
  •         Status (SNT)
  •         0x (ZRX)
  •         0xBitcoin (0xBTC)

Keeepkey is nevertheless trying to catch up and recently integrated the MyEtherWallet into its platform that makes it possible for its users to access and hold 1000+ coins and tokens online.

Keep key wallet cost and other fees

When KeepKey first hit the market in 2015, it was arguably one of the most expensive hardware wallets available at the time, priced at $239. With the successive acquisitions and integration of different technological solutions and exposure to the global markets, however, KeepKey has gradually reduced its price to the relatively affordable and highly competitive $49.

You will not incur any cost for the use or maintenance of the KeepKey hardware crypto wallet. You will only be required to part with the regular trading fees if you chose to trade on their integrated shapeshift exchange. 

Setting up the KeepKey wallet:

Configuring the wallet:

Our review found setting up the hardware wallet and readying it for use relatively complicated. The fact that the device only has one button especially makes navigation through the device monitor highly tedious. You have to use at least the KeepKey key chrome app and the KeepKey chrome extension to effectively configure the wallet and set up such security parameters as the pin code and passphrase as well as the generation of the recovery sentence. The process is quite straightforward, requires little to no guidance, and takes less than five minutes overall.

Sending and receiving coins:

The process of sending and receiving coins to your KeepKey hardware wallet is slightly different from the one adopted by other online or hardware wallets. Unlike most online transactions, involving software wallets where the transaction is completed online, KeepKey transactions have to be verified and approved on the hardware device before they are marked as complete on the blockchains.

When sending coins from the wallet, for instance, you start by logging in to your KeepKey client account on the KeepKey chrome extension. Click on the cryptocoin you wish to send, and the screen displays the sending page where you key in the receiver’s address and amounts you wish to send. You will then receive a sender’s prompt on the device display requesting you to authorize the payment by long-pressing the wallet’s button.

Note: The wallet has its default crypto account as Bitcoins, and you, therefore, have to create an account for any other cryptocoin you wish to hold here.

Receiving payments into your KeepKey wallet is equally straightforward. Start by logging in to your KeepKey client account and selecting the receive coin option. The client and the wallet device will both display your wallet address and QR code that you need to copy and send to the person from whom you seek to receive funds.

KeepKey hardware wallet pros and cons:

Pros:

  • Keepkey has a modernized, sleek, and attractive design
  • Keepkey stores all your digital assets securely and offline
  • The hardware wallet embraces layered security features that include a randomized pin code
  • At $49, the wallet is competitively priced and offers value for money

Cons:

  • Has a complicated setup process that requires a third-party browser extension
  • Has no recovery feature for the passphrase that if lost makes your wallet inaccessible
  • Its wide display makes the wallet less portable than its competitors
  • One may consider their support of 40 digital coins limiting

KeepKey wallet compared to competitors:

When compared against some of the most popular online crypto wallets like Coinbase and eToro, Keepkey’s outmatches them when it comes to keeping digital assets secure. But the two blow it out the waters with regards to ease of use. And while they all are integrated into pretty popular crypto trading platforms, KeepKey may be said to have a rather complicated send/receive funds functionality.

When stacked against equally popular hardware wallets like Trezor and Ledger Nano, Keepkey’s sleek design, especially the massive display, carries the day. It is also fairly priced when compared to most of the hardware crypto wallets. Its single button that complements its sleek design is, however, its biggest downfall when it comes to ease of use. The two are also relatively easier to install and set up.

Verdict: Is the KeepKey wallet worth buying?

Keepkey is an expertly crafted hardware wallet for cryptocurrencies with solid security features. It particularly outfoxes competition with its wide display and a multi-layered security system. Its biggest shortcomings stem from its limited support of cryptocurrencies and altcoins as well as a relatively complicated setup process. These have nonetheless not stopped it from topping the lists of most popular hardware crypto wallets, and we believe that if KeepKey made an effort to support more crypto coins, it would compete more favorably with the dominant hardware wallets.

Categories
Cryptocurrencies

How to Identify a Phony ICO

Every new week we hear of yet another new cryptocurrency being launched. Launching of cryptocurrencies and Initial Coin Offerings (ICOs) go hand in hand – as new crypto projects seek financing for the project. Due to their novel nature – in terms of technology and market behavior, cryptocurrencies are a very attractive investment for investors.  […]

Every new week we hear of yet another new cryptocurrency being launched. Launching of cryptocurrencies and Initial Coin Offerings (ICOs) go hand in hand – as new crypto projects seek financing for the project. Due to their novel nature – in terms of technology and market behavior, cryptocurrencies are a very attractive investment for investors.  […]

Every new week we hear of yet another new cryptocurrency being launched. Launching of cryptocurrencies and Initial Coin Offerings (ICOs) go hand in hand – as new crypto projects seek financing for the project. Due to their novel nature – in terms of technology and market behavior, cryptocurrencies are a very attractive investment for investors. 

Thus, any new and flashy crypto project is likely to attract a horde of both experienced and novice traders. Scammers know this, which is why phony projects have been able to successfully con millions of dollars from oblivious investors.

How do you stay alert? How do you avoid sinking your precious savings in a fraudulent ICO? The crypto space is incredibly dynamic, and even the savviest investor can find themselves sideswiped pretty fast. That doesn’t mean you can’t have some antennae out to help you detect crypto ICO fraud. 

This piece arms you with what you need to know so you won’t fall victim to the ICO scam clothed in grand promises and irresistible investment returns.

i) Find Out About the Team

Nothing will familiarize you with an ICO better than the team behind it. To determine whether an ICO is fake or not, check who the developer and the administrative team are. If it’s a legit project, these people will not only be out in the open but also have some history in a relevant field such as cryptocurrency, finance, or technology. If the team has a somewhat questionable history with these fields, you might want to get out.

Other scammers will name drop trusted names within the industry, claiming to have their backing for the project. To determine the veracity of this, a quick Google search is all you need. Also, check whether the people behind the project have mentioned it in their verified social media pages. If the search turns up nothing, you should take that as a red flag. And even if they mention the project and their social media activity generally looks dubious – like no interaction with followers that should also be a big, flashing, red sign.

ii) Study the Whitepaper

The foundation of any ICO is its whitepaper. A white paper should contain the background, motivation, goals, strategy, potential challenges, and a roadmap for the implementation of any blockchain or crypto project. A white paper can tell you so much. Read it thoroughly. Check to see the sources referenced in the paper. Does it have financial models that have been explored by other experts before? Does it address legal concerns? Does it talk about tools like SWOT analysis? Does it have a timeline for implementation?

These guidelines are for when a potential blockchain-based project has a white paper, to begin with. If it doesn’t have one, then you shouldn’t even think twice about it. Note, though, that it’s still possible for a fake ICO to produce a very convincing white paper. In that case, you need to check if it answers all your questions. What sets it apart? How does it aim to thrive in the already competitive blockchain space? How does it intend to achieve its goals? Finally, even if the white paper ticks all your boxes, always rely on your gut instinct. If too much as the littlest thing sets you off the wrong way, perhaps something is wrong.

iii) Look at the Token Sale

ICOs usually depend on crowd sales to fund projects. Know this: the crowdfunding process should be completely transparent. A legitimate ICO will make public sales figures so that potential investors can see and track them easily over time.

If a company is making it difficult for the public to track the progress of its crowd sale, this signifies a lack of honesty and perhaps underhanded dealings. Watch out for excuses, such as protecting the privacy of individual contributors. This is just a ploy to hide the progress of the ICO and prevent people from seeing how much money has been raised and how much time is remaining. Sometimes, scam ICOs will use this trick to generate a sense of urgency and fear of missing out (FOMO) in potential investors – so that they can collect more money.

iv) Is The Project Feasible?

This may sound obvious, but blockchain projects poised for success are those that have a solid and feasible set of goals. Crypto and blockchain are already wildly competitive spaces. A new project should be able to demonstrate what difference it brings and how it plans to outdo competitors. Many projects started out with pomp and circumstance, only to sputter away after the center couldn’t hold any longer. A project should sell a compelling concept that sustains interest in the long haul. 

The issue of transparency also arises. Projects that have an outstanding proposal are more likely to put themselves in the open as much as possible. If a project regularly updates the community with achieved milestones, that means it is legitimate and feasible.

v) Caution Is Your Friend

The crypto space offers opportunities galore for those who have done their research and can read the fine print before jumping into any investment. People have made millions out of this industry. Due to this promise, it is very tempting to want to jump into the next hot new project. And scammers know this, which is why they will not hesitate to flash seemingly irresistible projects in the eyes of naive investors.

Be wary of projects that sound too good to be true. Scrutinize new projects up to the last detail. Watch out for any single piece of important information that seems to be missing. Also, check for outside sources to establish the credential of any projects. 

Check if it has supporting communities on social media and other online forums. Remember, a project doesn’t need to be fake, so you can lose money; it can also be just poorly designed or too weak to succeed.

vi) Beware of Improbable Promises

Investing was never a surefire endeavor – not in stocks, not in commodities, and certainly not in blockchain projects. If a project comes out promising nothing but sky-high results, then it’s probably a scam.

 If someone is promising you a massive ROI before anything even kicks off, or guaranteeing you impressive profits, you need to be very suspicious.

Also, watch out for a project creator who tells you they already raised millions of dollars and that you need to join in now. It is an attempt to convince you to shell out your money, so you don’t miss out on the “golden opportunity.”

vii) Check Under The Hood

Some phony projects are just peddling vaporware. Which is why you need to confirm the software of any new crypto project that you want to invest in.

Check GitHub. Is the product listed on there? Also, is there a community where you can ask questions about the functionality and features of the crypto? You can even ask the developers to show you a prototype.

viii) How Are They Handling Your Money?

The way a project is handling your contributions can reveal a lot. For example, your funds should not be sent directly to an exchange site like, say, Binance. This would mean the creators can automatically cash out the money – without any accountability at all.

Also, how are they vetting contribution sources? Are they following anti-money laundering (AML) procedures? Are they adhering to know your customer (KYC) regulations? 

If the project team is not complying with best practices, it means they are operating outside of the law. And if they’re operating outside of the law, then you’re not supposed to be giving them your money.

Final Thoughts

The cryptocurrency market is fast-paced and exciting. It can make you pretty handsome returns, but you can also lose your savings in a heartbeat. This isn’t to deter you from trying your hand in the market. It’s a call to caution – more measured steps and due diligence before you fork out your cash for any investment. By following these guidelines, you should be able to gauge if that flashy ICO is worth your time and money.

Categories
Cryptocurrencies

What are DAOs and DACs? 

The days are long gone when bitcoin was the hype surrounding blockchain technology. The blockchain space had expanded in ways no one could have envisioned when the technology was still in infancy. One of the most exciting topics in the space right now is that of decentralized autonomous entities. 

The days are long gone when bitcoin was the hype surrounding blockchain technology. The blockchain space had expanded in ways no one could have envisioned when the technology was still in infancy. One of the most exciting topics in the space right now is that of decentralized autonomous entities. 

The days are long gone when bitcoin was the hype surrounding blockchain technology. The blockchain space had expanded in ways no one could have envisioned when the technology was still in infancy. One of the most exciting topics in the space right now is that of decentralized autonomous entities. 

Decentralized autonomous organizations (DAOs) are an entirely new phenomenon that might very well shake up the current organizational set up as we know it. This piece breaks down DAOs, together with their equally interesting subgroup known as decentralized autonomous companies (DACs). 

What are DAOs and DACs? Where do humans fit in, if at all? What does this mean for the future of the corporate space? Let’s find out.

Decentralized Organizations 

To begin to explore decentralized autonomous organizations and decentralized autonomous corporations (companies), we need to first understand the concept of decentralized organizations. A decentralized organization follows the very same concept of traditional organizations – only this time, it decentralizes it. A traditional organization features a hierarchical structure with human beings interacting with each other and running operations based on a set of rules. 

Now, a decentralized organization also features human beings interacting with each other, but this time following a protocol that is coded and enforced on the blockchain. A decentralized organization does not mean that operations are automated. Rather, decisions and operations and the direction of the organization are still determined by humans.

Concepts underlying DAOs and DACs

There are several concepts that are underlying the entire DAO and DAC model that we need to familiarize ourselves with, first. Let’s get a grasp of them below:

☑️Smart contracts: A smart contract is a contract that is self-verifying and self-enforcing when certain conditions have been met. A smart contract is much like a traditional contract but without the intermediaries like lawyers, accountants, and so on. Since a smart contract does not need third parties to oversee is execution, it’s way more economical in terms of time and costs.

☑️Autonomous agent: These are software entities that can conduct a set of operations on behalf of a user or another program. Autonomous agents are either completely autonomous or possess a certain degree of autonomy. Autonomous agents act with inspiration or understanding of the user’s wishes or desires.

☑️Internal capital: This is property belonging to an organization and which can be transferred to other parties. Internal capital can either be physical or virtual.

☑️Decentralized application: This is an application that runs on a distributed network. These applications are not controlled by any single authority, neither can they be shut down or experience downtime since they run on a distributed network of computers, thus eliminating a single point of failure. 

Decentralized Autonomous Organizations (DAOs) 

A DAO is an entity that operates purely on the internet and whose operations are autonomous, though these operations are input by humans. To understand what a DAO is, it helps to think in terms of what it is not. 

Let’s begin by looking at decentralized applications (DAs). A DAO is a DA, but with internal capital. This means that a DAO has some sort of property that has value, and it can use this property to reward certain activities or transfer that property to some external entities. A DAO also utilizes autonomous agents to carry out some activities in place of humans. 

So we can say a DAO relies on human input to kick off operations – with the operations being automated, that is, independent of human intervention. As such, a DAO can be described as being automated at the center, but having human action at the edges.

Decentralized Autonomous Companies/Corporations (DACs) 

Now we come to DACs. DACs are a subset of (DAOs). We can look at it this way: all DACs are DAOs, but not all DAOs are DACs. One standout feature of DACs is that they are profit-driven. A DAC has stakeholders who have a right to the share of profits that it generates.

What Are The Benefits Of DAOs and DACS?  

Both DAOs and DACS present with some benefits of their underlying automation-at-the-center, humans-at-edge model. 

i) A Borderless and Non-Jurisdictional Organization  

Let’s contrast this with the traditional model of organizations. These organizations possess a corporate personality, exist within a physical space, provide physical goods and services, and operations are run by paid employees. This system is subject to a ton of regulations and rules, as well as legal, accounting, and energy costs. 

A DAO can circumvent some or even all of these issues. This doesn’t mean that a DAO will be exempt from corporate laws. Regulators will most likely take this position: If it looks like a duck and quacks like a duck, it’s probably a duck. However, the very nature of a DAO will enable it to sidestep some of the issues that a traditional organization can simply not avoid. 

 ii) An Increased Sense of Ownership for Members

The traditional model of companies concentrates much of the decision-making power and money at the top. Shareholders take the biggest piece of the pie, followed by executives, then top-level management. The average employee is consigned to the very bottom of the rung. This model is not the most ideal for modern corporate space. Research shows a hierarchical structure negatively impacts employee satisfaction, job quality, loyalty, and morale. 

DAOs can solve this by providing everyone with a monetary and decision-making stake, as well as fostering feelings of belonging and ‘buy-in’. This results in more motivated employees who will dedicate the time and effort into the long-term success and thriving of an organization. 

iii) Ability to Foster New Business Relationships 

The importance of business-to-business relationships cannot be overstated. Arrangements such as joint ventures, partnerships, and so on can enable companies to work together and save resources, promote trust, and define their own market-friendly rules. The ability for this to happen in an open, transparent, and autonomous manner is a win for all parties involved.

iv) Early Preparation for the Future of Decentralized Organizations 

With the increasing recognition and adoption of blockchain and smart contracts, it’s a matter of time before businesses take it “on-chain”. In the future, contracts and online agreements that do not have some sort of smart contract functionality will be treated with suspicion because people will see it as an unwillingness to do business in a trustless environment.  

The question “what are you hiding?” will not be too off the mark. As such, on-chain based organizations will be best positioned to take advantage of the opportunities of the model as well as trailblaze the field. Also, blockchain makes things more efficient – and this will enable such companies to knock off the competition and become a source of pride for their members. 

What’s So Special About The DAO and DAC Model?   

The DAO and DAC model proposes utilizing the blockchain to automate the vast majority of internal functions, as well as external engagements. The big vision here is an ecosystem of automated, borderless organizations all running on enterprise blockchains. What is so special about this model? Why should businesses and, indeed, the world pay attention? 

Openness means total transparency in the organization’s operations. The blockchain-based way of doing things means functions such as voting, financial records and payroll management, constitutional procedures, and so on are done in a completely transparent fashion. Minority shareholders never have to worry that the majority of shareholders are partaking in dubious activities. 

Also, members are sure that there is no misappropriation of funds taking place. A blockchain-based business can also utilize a multi-signature wallet that requires every member to authorize transactions. In short, there is fairness and risks are mitigated. 

Automation through smart contracts takes everything to a new level of excitement. Employees can be assured that there are funds to reward them for their work before they can begin on projects. Employers can ascertain that employee credentials are up to the mark, and outside engagements can be arranged without the need for outsourcing.

The DAO model is blockchain-native. Decentralized applications will enable companies to utilize blockchain technology to a certain extent. But DAOs will take things to new levels by incorporating functionalities into the blockchain structure. This will lead to frictionless operations and create an environment where enterprises can reap the full benefits of blockchain.

Final Thoughts 

These organizations are not just a theoretical concept. Projects like Aragon, Bitshares, and Colony have already taken the mantle in this space. Satoshidice, an online casino, is another unexpected entity that embodies what a DAC is. With projects like these already up and running, it’s clear that we’ve barely scratched the surface of what the DAO model is truly capable of becoming. 

Categories
Cryptocurrencies

How Can Blockchain Improve the Music Industry?

Music is a universal language that connects all of us, regardless of where we come from or what language we speak. Music makes us move and dance and lifts our moods and spirit. But how much do we know about what goes on behind the creative scenes? Unlike the music itself, the goings-on in the music industry are not as harmonious.

Music is a universal language that connects all of us, regardless of where we come from or what language we speak. Music makes us move and dance and lifts our moods and spirit. But how much do we know about what goes on behind the creative scenes? Unlike the music itself, the goings-on in the music industry are not as harmonious.

Music is a universal language that connects all of us, regardless of where we come from or what language we speak. Music makes us move and dance and lifts our moods and spirit. But how much do we know about what goes on behind the creative scenes? Unlike the music itself, the goings-on in the music industry are not as harmonious.

From delayed payments to a lack of transparency to artists earning way too little, the current way of doing things in the music industry is too fractured. The industry is rife with conflict between artists and managers and artists and distributing services. Claims of distributing content without permission or unclear revenue splitting methods are some of the persistent bones of contention. 

But this may change soon, thanks to the decentralized, immutable, and transparent blockchain. Blockchain is transforming the way the music industry handles contracts, how artists receive their deserved pay, and how royalties and copyrights are managed.

This piece explores this topic deeper by identifying the ways blockchain can improve relationships among various parties in music and how artists can catch a break from the currently skewed revenue-sharing model. We’ll also be looking at some exciting blockchain-based projects that are leading in this space.

Blockchain and Music: Use Cases

i) Decentralization

In the current musical setup, centralized entities, e.g., Apple Music, are the ones who provide music to the masses. This means they control what music is aired and that they (entities) are subject to the regulations (and whims) of the country they reside in, or indeed external governments with vested interests. This means they can delist musical content when instructed to do so. This can be illustrated by Apple Music removing the contributions of Chinese pro-democracy singers Li Zhi, Anthony Wong, and Dennis Ho – due to pressure from the Chinese government. 

Blockchain-based music distribution would be immune to this kind of censorship or unilateralism. With blockchain, no one can delete artists from musical platforms, and no one would be capable of taking any music down from the platform. Artists will be able to distribute what they like whenever they like, and to whomever they like. No government or states would have any say or influence whatsoever on what kind of content is played.

ii) Fairer Royalty Systems

The music industry constantly finds itself mired in financial squabbles over unpaid royalties. For instance, Spotify, the streaming giant, had to pay up to 30 million dollars in settlements after being sued by music publishing and songwriters over uncompensated work.

This fiasco testifies to the never-ending misunderstanding over who is owed what that plays out in the traditional music setup.

Blockchain would solve this problem by providing transparency and value for everyone involved. It can do this by tracking royalties then ensuring that they go to their rightful owners, as well as ensure various contributors are compensated for their input into a song. Smart contracts powered by blockchain can also streamline payments so that artists are paid for songs as soon as they are played or downloaded. This is in contrast to the current scenario where they have to wait for weeks, months, or even years to receive payment.

iii) Better Revenue-Sharing Model

Currently, musical artists are getting the short end of the stick. For instance, musicians got a meager 12% out of the total $43 billion in revenue for the music industry in 2017. And this was an improvement from the 7% cut that they got in 2000.

While recording companies and distributors bear much of the financial risk, the revenue distribution still seems unfair. Blockchain-enabled distribution platforms world cut out the many intermediaries involved in music distribution – ensuring only the contributing parties are on the payroll. This way, artists can go home with a fairer compensation for their work.

iv) New Monetization Models

With blockchain technology, artists can discover new ways of making money instead of relying on the traditional revenue model. The traditional model brings in money from touring, playing live, licensing fees, and so on.

Instead of depending solely on these revenue streams, artists can generate more revenue via blockchain-based models. For instance, they could come up with a cryptocurrency for a specific song or album. Through this cryptocurrency, they can create a virtual “stock market” through which listeners can purchase pieces of the rights of the song. Artists can then receive money from the money trickling down from the purchases. Blockchain-based smart contracts would ensure security, fairness, and transparency in this model.

v) A Global Music Registry

One of the challenges the music industry is grappling with currently is lack of a verified global registry of musical works. Attempts to build one have come to naught – resulting in the waste of millions of dollars.

A global music registry that identifies music rights holders would help streamline the royalties and rights management of music globally. Blockchain would help this by providing an open and transparent protocol where all musicians, composers, and other associated parties can have their rights managed more efficiently and fairly. 

vi) Change the Concept of Advances

An advance in the music industry refers to the pre-payment of royalties, whether by a label or a distributor to an artist. This arrangement has its share of problems. First, artists will have to recoup the advance at a later date, and the recording company bears the larger share of the overhead risk. 

Blockchain could change how advances are made – by distributing the risk among various stakeholders, facilitating a fairer distribution of royalties, and offloading much of the risk from the recording company.

Examples of Blockchain-Based Musical Projects 

MediaChain: This is a blockchain-based company that organizes open-source information with the use of unique identifiers for every single piece of information. Via the MediaChain platform, artists can also see to it that they paid fairly. By utilizing smart contracts, MediaChain allows artists to stipulate their royalties and rights without the need to integrate third-party intermediaries or contingencies.  The company has already been acquired by the streaming giant Spotify to assist in streamlining royalty and rights management in the music industry.

Ujo: This is a decentralized, blockchain-based platform on which artists can upload music, self-publish, and manage licensing and distribution. The Ethereum-based platform manages a database for music ownership rights and distributes royalties fairly and transparently via the use of smart contracts.

Choon: This is an Ethereum-based digital streaming platform that fairly and timely compensates artists for their work. On the Choon platform, artists can create smart contracts that ensure every contributor is fairly rewarded.  Rather than wait for weeks, months, or years to compensate artists, Choon rewards them almost immediately according to the number of streams the blockchain has recorded on any given day. Choon also features a crowdfunding function that allows burgeoning artists to gain a solid footing in the game. The platform also allows music fans to create personalized playlists and get paid for it.

VOISE: This is a blockchain-powered application that has its own token. The platform’s token enables artists to get paid for their music in a peer-to-peer marketplace. VOISE provides a collaborative platform through which artists can upload music according to fan preferences while getting almost 100% of revenue from the music. Artists using the VOISE platform can also determine how much listeners will pay for consuming their content. Artists can also offer free sample tracks to lucky listeners and receive feedback and support from the community.

Concluding Thoughts

Blockchain is making things better for music. Artists can get their fair pay without contention; risks can be shouldered by various parties so that record labels do not bear the brunt. Fans can participate in the music-making process, and artists can find support within the community. Everybody wins.

What we are yet to see, though, is the full-scale adoption of the technology in the industry. Perhaps this is because movers and shakers of the industry are yet to discover the revolutionary potential of blockchain, or because transitioning into a new way of doing things is easier than done. Either way, the music industry stands to benefit massively from blockchain, and the sooner it wakes up to this fact, the better.

Categories
Cryptocurrencies

What Does it Take to Launch A Successful ICO?

For the last three years, Initial Coin Offerings (ICOs) have been compared to the dot-com bubble of the early 2000s. The two are much alike in that they led to significant loss of investors’ money. The only difference being that ICOs caused an 85% drop in the crypto market cap, which is steeper than the dot-com’s bubble – 78% crash.  

For the last three years, Initial Coin Offerings (ICOs) have been compared to the dot-com bubble of the early 2000s. The two are much alike in that they led to significant loss of investors’ money. The only difference being that ICOs caused an 85% drop in the crypto market cap, which is steeper than the dot-com’s bubble – 78% crash.  

For the last three years, Initial Coin Offerings (ICOs) have been compared to the dot-com bubble of the early 2000s. The two are much alike in that they led to significant loss of investors’ money. The only difference being that ICOs caused an 85% drop in the crypto market cap, which is steeper than the dot-com’s bubble – 78% crash.  

Well, the ICO bubble may have popped as recent data suggests, but there are valuable lessons to be drawn from its failure. These lessons can be used to form the basis of what it takes to launch a successful ICO despite the prevailing skepticism around such projects. 

How to launch a successful ICo

i) Formulate a Sound Business Model

Similar to traditional businesses, most ICO projects fail due to the lack of a strategic business plan. As such, ICO investors are willing to invest in a project that has a sound business model with a concrete idea of the product or solution the project offers to the market. To achieve this, you need to objectively study the market, know your audience, and weigh your project’s contribution to the crypto community. 

Once you have all the relevant data, it is always recommended to write a whitepaper for the investors to review. Essentially, a whitepaper is a comprehensive description of your entire project and its goals. Be sure to also include crucial details such as development strategies, legal issues, and available resources. Sure, a well-crafted whitepaper isn’t a guarantee of success. But a poorly written whitepaper with an impractical approach to achieving the project’s goals will certainly turn investors away. 

ii) Create Value for Your Token

Ideally, an ICO campaign will launch its own tokens that give investors access to the service or product set to be launched. If your token is to gain value, it will need to be in high market demand to attract more investors. Note that demand can be created only if your business model offers better solutions than your competitors. Besides, there are numerous project offerings in the market, so you have to make yours stand out. 

Provided you have a solid business plan, there are two main approaches to increasing the value of your token. The first is designing a token distribution plan, and the other one is deciding on the exact number of tokens to be issued. To start with, the token distribution plan is done through private sales pre-sales or crowd sales. Private sales are closed ICO sales targeting high profile investors and professional investors. The idea here is to raise a significant amount of funds and leverage the influence of wealthy investors to gain the attention of others during the public sale. 

Pre-sales are usually held in preparation for the main public sale. They are usually done to raise awareness of the token among the general public. The crowd sale targets investors, including those with limited amounts of investment. 

In each stage of the token sale, decide in advance how many tokens will be issued in total. 

You should also create room for issuance of additional tokens just to maintain market equilibrium. 

iii) Build Your Team

Much of an ICO’s success depends on the team behind the project. From the marketing team, product developers, engineers, to the initial investors; they all need to be in sync with the objectives of your ICO project. It is also wise to include a lawyer in your core team to help you streamline the legal process of launching the ICO. Currently, there aren’t any lawyers specializing in crypto space, but an experienced lawyer in corporate formation can serve you just right. 

Other members of your team, such as financial experts and developers, should have a good reputation in the blockchain industry. This goes a long way into giving your project the credibility it deserves to win reliable investors. A good team should consist of members who can complement each other’s skillset and even bring like-minded professionals on board. 

You might also consider having well-known advisers and promoters in alliance with your team. Although this doesn’t always translate to success, these individuals will help vouch for your project. 

Keep in mind that a team doesn’t entail those tied directly to the project only. Your target customers also have a place in your team. Advertising might win you some customers, but it’s an expensive approach considering that not everyone is interested in ICOs. A good place to start is by interacting with your customer base is through established online crypto communities such as Bitcointalk, Steemit, and Reddit. You can also work closely with YouTubers specializing in cryptocurrency. This way, once you start your marketing campaign, the audience will already be familiar with your offering and be likely to be swayed into investing. 

iv) Build an Online Presence

Having an online presence is not only a viable marketing tool but also a good way to give your project a touch of legitimacy. 

You can start by creating a website that showcases the necessary details of your project. As such, it makes sense to post an online whitepaper of your project on the website. Most importantly, remember to create a ‘team’ section on your web where all the project stakeholders appear. This section should be detailed, explaining the role of each team member, including their previous work and the milestones they have achieved. Be sure to include a passport size picture of each member above their profile. 

You also need to know that only a handful of investors read the whitepaper to the very last page. For this reason, it is a good idea to have a ‘roadmap’ section on your website to concisely outline realistic goals of the project, including the set timeframes to achieve these objectives. 

Your online presence wouldn’t be complete without creating social media platforms. You should have one platform for your entire project, and several others for every member of your team. The platforms provide an interaction medium between your brand and customers. 

v) Launching Your ICO

Launching an ICO is a pretty straightforward process, especially if you observed the aforementioned procedures. But there are a few twists and turns to navigate before you can put your ICO out to the world.

The first hurdle to overcome is deciding the location in which to launch your ICO. Different countries have varying policies regarding fundraising, particularly in the crypto space. For instance, offering your ICO tokens to U.S residents may not be a good idea since the tokens will be subject to the Securities and Exchange Commission (SEC) regulations. This will come with its share of legal problems given that the U.S government hasn’t exactly warmed up to blockchain. Instead, aim to launch your campaign in ICO-friendly countries such as the British Virgin Islands, Singapore, Hong Kong, Switzerland, and the Cayman Islands. 

Lastly, determine the token pricing strategy to use based on your goals. Generally, there are four token pricing strategies: 

  • Undetermined price: This method is divided into several price stages, whereby the token price in the initial stage is fixed. As more investors come in, the price increases as the stages advance. 
  • Fixed price per token: In this method, the tokens are offered at a set price that doesn’t change with the number of investors. This is to say that investors can buy as many tokens as they wish without affecting the price. To avoid market overvaluation, the tokens are frozen for a pre-set period, after which they are made available for trading on the market. 
  • Random price token: This strategy doesn’t have a fixed price for the token. Instead, tokens are issued to investors as per their amount of funds. 
  • Price decreases over time: As the name suggests, the tokens are offered at a higher price than decreases as the sale period passes.

Conclusion 

ICOs are a revolutionary way through which the average investor can access investment opportunities that would be otherwise reserved for venture capitalists and institutional investors. This provides blockchain entrepreneurs with a platform to actualize their business goals and contribute to the advancement of the entire blockchain space. However, setting up an ICO project and finally raising funds isn’t as easy as it was a couple of years ago. As such, the above-mentioned guidelines will help you adjust to the changes in the ICO market, bringing you closer to the objectives of your ICO project. 

Categories
Cryptocurrencies

What are CryptoKitties?

-When Satoshi Nakamoto created the blockchain, he had far more far-reaching goals in mind: a secure technology that would power the world’s first cryptocurrency. And indeed, cryptocurrencies are the biggest adoption of blockchain today.

-When Satoshi Nakamoto created the blockchain, he had far more far-reaching goals in mind: a secure technology that would power the world’s first cryptocurrency. And indeed, cryptocurrencies are the biggest adoption of blockchain today.

-When Satoshi Nakamoto created the blockchain, he had far more far-reaching goals in mind: a secure technology that would power the world’s first cryptocurrency. And indeed, cryptocurrencies are the biggest adoption of blockchain today.

But then came Ethereum, the blockchain that showed us that blockchain was capable of more. On the platform, users can create smart contracts and build decentralized applications (DApps) – which are applications that cannot be censored or controlled by anyone.

Then one team came and utilized DApps in a way that was completely unprecedented – by creating a game that allows people to buy, breed, and trade cats. The game has taken the world, not just the blockchain world, by storm. Enthusiastic players have poured millions of dollars into the game. Several articles have been published about “kitty phenomena.” Even Ethereum’s Vitalik Buterin himself has given it a shout out – and that is saying something.

So what’s CryptoKitties? This article sets to exploring the intriguing blockchain-powered “kitty verse.”

The Team behind CryptoKitties

Crypto Kitties is the brainchild of a company called Axiom Zen. This company creates many sorts of projects using novel technologies like virtual reality and blockchain.  

Based in both San Francisco and Vancouver, the “award-winning venture studio” CryptoKitties wants you to “Collect and trade CryptoKitties in one of the world’s first blockchain games. Breed your rarest cats to create the purrfect furry friend. The future is meow!”

What is a Genetic Algorithm? 

A genetic algorithm is a computer science optimization technique that’s inspired by the natural selection process. It works by generating ‘kids’ from a pool of parent solutions that uses bio-inspired operators such as selection, crossover, and mutation. The genetic algorithm represents the genes in the form of numbers. The numbers represent the proteins and other elements that we humans have in our bodies.   

  • Selection: Selection means retaining the best parents with the best genes from one generation to the other. 
  • Crossover: This means taking the two common variables of the two parents and retaining them in the child, just like how real-life people retain features from both parents. 
  • Mutation: This involves taking a parent and randomly mutating some of their ‘genes’ to create a child. 

Why are we talking about the Genetic Algorithm? Because it’s the technology that CryptoKitties uses to create new kitties. By using a crossover mechanism, a child genome is “sired” from the gene pool of two-parent kitties. This child genome is what grows up to be a new kitty. 

The CryptoKitty Smart Contract 

The entire cryptokitty smart contract is broken down into smaller and more manageable contracts. The ‘inheritance tree’ of the contracts is like this: 

  • contract KittyAccessControl 
  • contract KittyBase is KittyAccessControl 
  • contract KityyOwnership is KittyBase  
  • contract KittyBreeding is KityyOwnership  
  • contract KittyAuction is KittyBreeding
  • contract KittyMinting is KittyAuction
  • contract KittyCore is KittyMinting

The KittyCore here is the contract that tracks ownership and transfer of kitties. It’s The one that greenlights the siring of new kitties 

Where Do New Kitties Come From? 

The first cat was adopted on December 2, 2017. Since then, a new cat was born every 15 minutes until November 2018 when the first generation kitties no longer existed. 

The white pa-purr (what the developers really, truly call the white paper) states that only 50, 000 generation-0 kitties will ever exist. 

Of course, CryptoKitties can breed with each other to birth newborn kitties. Any kitty can be a ‘sire’ or a ‘dame’ for a breeding pair. After breeding takes place, the owner of the dame will be given the baby kitty – who will have ‘cattributes’ of their parents, as well as random cattributes. In rare cases, a ‘fancy cat’ with custom cattributes will be born. 

There’s no limit to how many CryptoKitties can exist. On the CryptoKitties market, you can also pay to breed your kitty with another person’s kitty – if you like that kitty’s cattributes. 

How to Buy and Store CryptoKitties?

Before you get started with anything, there are three things that you need:

Before you can begin to buy CryptoKitties, you need to have the following: 

  • Chrome or Firefox Browser 
  • The Metamask Wallet 
  • Ether in the Metamask Wallet. You can exchange fiat currency for Ether from any of several exchanges, including Coinbase, Kraken, Bitfinex, GDAX, Gemini, and so on. 

Once you have those, it’s pretty straightforward. Go to the CryptoKitties website and choose the kitty of your preference. Don’t you like any? No problem. Simply search for a ‘Gen 0’ kitty under the ‘Gen 0’ tab. 

To sire new kitties, go to the ‘Siring’ tab. On there, you’ll see all the kitties that have been put up for siring. Go ahead and choose the kitty that you’d like to have mated with yours. 

Now, how do you store your kitties? You can keep them in the MetasMask wallet if you’d like to be viewing and also trading them. But if you’d like to HODL your kitties, you can store them in a cold storage wallet that supports ERC-721 tokens e.g., Ledger Nano S.

Gas Consumption of CryptoKitties

CryptoKitties are one of the reasons scalability of the Ethereum blockchain has come into sharp focus. This is because the game became so popular that it clogged up the Ethereum network such that transactions would take days before confirmation. Due to this, the creators of the game had to increase ‘birthing’ fees.

Axiom, the company behind the game, said this in a Medium article:

“The excitement and adoption we’ve seen this week has been overwhelming, and we couldn’t be happier! However, the Ethereum network is completely full. The only way to keep CryptoKitties from lagging is to increase the gas prices so that all transactions can complete quickly. We know that increased gas prices will mean that some of you will need to slow down your breeding regimen, and we are incredibly disappointed by that. But who knows? Maybe this slowdown will just mean that you’ll love the Kitties you already have that much more.”

From this episode, it was clearer than ever that the Ethereum blockchain and, indeed, the current entire blockchain setup is not really capable of handling mainstream demands. That means that they have to work on the scalability issue before they can play the role of a decentralized, peer-to-peer future.

Built on Ethereum 

As of early 2020, CryptoKitties runs on the Ethereum network. Smart contracts oversee every aspect of the buying and selling of kitties. As such, no one can change, remove, or change a kitty once it has been birthed. The person that holds a CryptoKitty can hold it, let it mate with another kitty, or trade it if they feel like. 

The game also uses Ether as the medium for transactions. It’s still not possible to buy CryptoKitties with fiat currency as of now. However, the developing team hopes to make this option available in the future.

Final Musings (Meowsings!)

Whether you’re a cat lover or not, CryptoKitties allows you to immerse yourself in a unique gaming experience of Kitty verse and make lucrative profits while at it. The game is an illustration of what blockchain is capable of. 

Who would have thought that Satoshi’s technology would one day be used for purely recreational purposes? CryptoKitties’ wild popularity just shows that blockchain games can be a hit, as long as they provide some form of value to the masses. More than industry applications, this could be the very pathway to taking blockchain mainstream.

Categories
Cryptocurrencies

The R3 Corda Project

Many people think that blockchain and distributed ledger technology are the same things. But as you will realize in this article, blockchain is one type of distributed ledger technology. There is no doubt that blockchain outshines all other types of distributed ledgers. After all, blockchain’s first application was Bitcoin – which is, to put it like this: a celebrity digital currency.

Many people think that blockchain and distributed ledger technology are the same things. But as you will realize in this article, blockchain is one type of distributed ledger technology. There is no doubt that blockchain outshines all other types of distributed ledgers. After all, blockchain’s first application was Bitcoin – which is, to put it like this: a celebrity digital currency.

Many people think that blockchain and distributed ledger technology are the same things. But as you will realize in this article, blockchain is one type of distributed ledger technology. There is no doubt that blockchain outshines all other types of distributed ledgers. After all, blockchain’s first application was Bitcoin – which is, to put it like this: a celebrity digital currency.

Distributed ledger technology provides several benefits – one of them being decentralization. Decentralization removes a single point of failure in systems, as well as granting all participants of a network equal access to data.

The R3 Corda project takes advantage of distributed ledger technology to create an open-source enterprise-grade platform on which businesses can transact with each other in a private, affordable, and efficient smart contract platform.

The R3 blockchain consortium was formed in 2013 and has over 200 members from diverse sectors.

The Corda Model

The Corda platform model is underpinned by three core concepts, which are:

i) State Objects: These represent an agreement between two or more parties. State objects are governed by what is known as a Contract Code – whose work is implemented in portions of human-readable legal text.

ii) Transactions: These are activities that oversee a state object from start to completion.

iii) Flow Framework: This is the infrastructure that enables parties to coordinate activities without the need for a central controller.

Business Principles of Corda

  • Inclusion. Members can discover and transact with each other in a free, single, and open network.
  • Assured Identity. Parties will have the knowledge of who is who in the network
  • Privacy. The only parties who will be privy to the details of a transaction are the involved parties only.
  • Shared logic. All characteristics of an agreement managed by the system will be described in computer code that is shared among concerned parties to ensure the consistency and validity of agreements.
  • Legal footing. Any deal that is recorded on the ledger is admissible evidence and legally binding for all parties involved – in case of any dispute.
  • Authoritative. Any information on the ledger is considered authoritative. There are no ‘shadows’ of authoritative data that are kept somewhere else. What parties see is what they get.
  • Immutability. Data entered on the ledger is final and cannot be deleted. In case of any errors, parties will wait until the next transaction to address it.
  • Open. The system is open in every aspect: open source, participation, development, governance, and standards so that it balances its diverse user needs in a transparent fashion.

The R3 Corda’s Architectural Vision

 R3 Corda aims to create a blockchain environment that is underpinned by the following features:

 i) Scale. The network will scale to support billions of transactions daily across industries

 ii) Longevity. Different versions of Corda will be able to run side by side, and applications can run on later versions, without having to change any code.

 iii) Secure. The platform will operate as though expecting an adversary at any time. So, security settings are forever on high alert.

iv) Stable. The network will evolve carefully, with each version maintaining consensus critical network standards to avoid bugs.

v) Interoperable. On the platform, multiple applications will be able to coexist and interact with each other. 

Notaries

Corda aims to achieve more scalability than the existing distributed ledgers, including blockchain, as well as provide much more security than the one found on blockchains. 

The platform will achieve this by including “Notaries” in their network. Notaries on Corda function much like miners on the blockchain, but without the massive energy costs associated with mining. Notaries validate transactions by time-stamping them. Only after a transaction has been time-stamped can it be recorded on the immutable ledger. 

Notaries can either be centralized (in which case they will be R3 nodes themselves or banks) or distributed (in which case they will use a consensus algorithm, mostly the Practical Byzantine Fault-tolerance Programming.)

Corda and Smart Contracts

Corda enforces its business logic via the use of smart contracts. A smart contract on the R3 Corda platform is a simple function through which a user can accept or reject a proposal. Users can also compose smart contracts using simple and reusable tools.

A transaction is valid when and only if the contract code is associated with a state agrees. A transaction’s initiator has to construct a transaction that adheres to the constraints of that transaction.

Corda uses the Java Virtual Machine6 –- which has a wealth of libraries and a large skill base, for the creation of smart contracts.

How Corda Achieves a Global Distributed Consensus

Corda has three main tools to help it achieve a globally distributed consensus:

  1. Smart Contract Logic – Which specifies constraints to ensure transactions are valid as per pre-set rules and procedures.
  2. Uniqueness and timestamping of services known as notary pools that order transactions temporarily and eliminate conflicts
  3. A ‘Flow Framework’ that simplifies complex protocols between and among distrusting parties

Not a Blockchain

Corda is an implementation of distributed ledger technology by a company called R3. The implementation is modeled after Bitcoin’s UTXO model.

Corda is not a blockchain. It has some similarities with blockchain, but it’s leaner and enables a plug-and-play model.  Mike Hearn, a member of the leading team, writes: “There is no blockchain…Corda is not tied to any particular consensus algorithm.”

Corda’s approach makes it stands out as one of the leading consortia in the DLT/blockchain space.

CorDapps

CorDapps are the Corda platform’s version of decentralized applications. Developers can create their own CorDapps from scratch using the Java CorDapp Template or the Kotlin CorDapp Template.

Corda has also developed a set of CorDapp examples that can serve as templates for developers. These templates are free for access and will demonstrate to developers how to implement core functionalities of CorDapps.

Here are some examples of Cordapp Projects

Auction CorDapp – A CorDapp that allows users to carry out public or private auctions

Be-Well – A CorDapp that allows clients to purchase wellness services via brokers 

Cordite – An open-source, enterprise-ready and finance grade CorDapp that provides decentralized economics and governance services 

Delivery vs. Payment Asset Transfers – A CorDapp that lets users develop delivery-vs-payment of an asset coordinated by a clearinghouse

Oraclize API – An oracle service that uses authenticity proofs to prove that data fetched from the original source has retained its integrity.

What’s In It for Businesses?

By signing up on the R3 Corda platform, organizations can:

  • Streamline complex processes and hence reduce operational costs and risks
  • Acquire new, cutting-edge ways of doing business and hence gain a competitive advantage in the market
  • Increase revenue by a connecting to and monetizing new networks
  • Create a climate of trust between various players

Final Thoughts

The Corda project is showing the world the power of distributed ledger technology. It’s right up there with other projects that rely on blockchain, like the Hyperledger project. Corda provides a great solution for businesses to streamline processes, reduce overhead costs, and achieve business results faster. Through its CorDapps platform, users can create decentralized apps that create useful solutions for society.

Categories
Cryptocurrencies

Enterprise Ethereum Alliance: A comprehensive guide

A lot can happen in a decade. And in the blockchain and cryptocurrency space, a lot has happened – and that’s remarkable, seeing we started using those terms just about ten years ago. From thousands of cryptocurrencies launched to entire organizations coming together to further the blockchain agenda – the industry is growing stronger. 

A lot can happen in a decade. And in the blockchain and cryptocurrency space, a lot has happened – and that’s remarkable, seeing we started using those terms just about ten years ago. From thousands of cryptocurrencies launched to entire organizations coming together to further the blockchain agenda – the industry is growing stronger. 

A lot can happen in a decade. And in the blockchain and cryptocurrency space, a lot has happened – and that’s remarkable, seeing we started using those terms just about ten years ago. From thousands of cryptocurrencies launched to entire organizations coming together to further the blockchain agenda – the industry is growing stronger. 

The Enterprise Ethereum Alliance (EEA) is one of these organizations – and it exists to make it easier for individuals and businesses all over the world to collaborate and build private versions of the Ethereum blockchain for their business needs.  

The alliance has over 150 members – which is impressive, seeing as it only started with 30. 

What is EEA’s Vision? 

EEA is motivated by four goals:

i) Build a standard open-source specification 

EEA will define open-source standards for the operation of Ethereum blockchain across member organizations. 

ii) Address enterprise requirements

The EEA will help member organizations deploy blockchain technology wherever applicable.   

iii) Evolve in tandem with the Ethereum blockchain 

EEA members will get blockchain experts and best practices from the Ethereum blockchain. Hence, both public and private versions of the Ethereum blockchain will grow alongside each other.

iv)Strive for global interoperability 

The EEA will strive to realize the interoperability of the blockchains.

How Does EEA Help the Ethereum Blockchain?

The EEA hopes to help the Ethereum blockchain in these ways: 

  • Governance for Ethereum’s Enterprise Applications

The alliance will design a framework through which smart contracts can be optimized and implemented for companies and businesses. Thanks to this, companies will have an easier task of transferring real-world applications onto the blockchain. 

  • Enhance Compatibility and the Public Ethereum

The EEA will plug in new features based on real-life uses cases and contribute to Ethereum’s smart contracts business potential – and the way businesses conduct business.   

  • Ensure Rapid Technical Innovations

Developers interested in creating smart contracts and decentralized applications on the Ethereum blockchain will have an easier time doing so, thanks to more familiar frameworks and more standardized technical procedures and tools.

Ethereum Enterprise Alliance and Hyperledger 

In October 2018, the EEA and Hyperledger – an umbrella project for open-source blockchain frameworks announced they would be working together for the benefit of blockchain. This was good news for the crypto space since both bodies have a wealth of blockchain expertise between them. The two organizations were being seen as competitors before – but coming together means they can tap the synergies in each other and do great things for blockchain. 

“This is a time of great opportunity. Collaborating through mutual associate membership, provides more opportunities for both organizations to work more closely together,” said Ron Resnick, an executive director of the Ethereum Enterprise Alliance. 

The two organizations will help drive the adoption of blockchain by businesses and companies all over the world and, in the process, bring blockchain benefits to the world. 

The new arrangement will also allow for greater sharing between the two organizations. For example, Hyperledger developers can benefit from EEA’s certification programs, and EEA members working to achieve certain standards can get help from the Hyperledger platform to implement them. 

Members of the EEA

EEA is a collaboration of an eclectic mix of companies. 

Some heavyweights in the alliance are Intel, Microsoft, Santander, ING, Ethereum Foundation, Scotiabank, PricewaterhouseCoopers, and Standard Chartered Bank. 

The most interesting member might be JP Morgan Chase & Co. This is because the company’s CEO, Jamie Dimon, has been on record declaring his lack of faith in Bitcoin, Ethereum’s main competitor. His dislike for Bitcoin is so strong that he said he would fire any JP Morgan employee who traded Bitcoin. So, it’s puzzling that he would disparage Bitcoin and throw his support behind Ethereum. 

How to Become a Member of EEA

Anyone can become an EEA member, provided they meet the criteria. Members can be individuals, groups, or organizations. The criteria for joining is as below: 

  • Applicant must be promoting Ethereum-based enterprise applications one way or another. 
  • Applicant must agree to the EEA policies, guidelines – which include Intellectual Property, Non-Disclosure, and Antitrust.
  • Applicant must comply with their country’s laws and regulations 
  • Once a member, applicants must pay an annual membership fee. The fee is as follows: $3,000 for individuals, groups, and companies with less than 50 employees, $10,000 for companies with 51 to 500 employees, $15,000 for companies with 501 to 5,000 employees, and $25,000 for companies with more than $5,000 employees. 

Benefits of the EEA

One of the benefits of the Enterprise Ethereum Alliance is events. The EEA organizes several events each year that create great opportunities for members to meet, network, and share and discuss ideas. Anyone that wishes to connect with the Ethereum agenda in a more meaningful way can benefit from those events. The events take place in many places across the world; some events have been held in London, New York, Denver, Hangzhou, and many others. This opens up the opportunity for businesses from diverse areas of the world to attend. 

Another benefit is members can create strong relationships within the Ethereum community. Apart from discussing serious topics like regulations, creating decentralized applications, and so on, there are also sometimes cocktail receptions that bring people together to have fun, bond, and let loose a bit. 

EEA members can also have detailed bios on the website – where they can talk about their company as well as their Ethereum agenda. This makes for increased international visibility for their company – which comes with increased presence and authority in their industry. As well, members can view each other’s information and create mutually beneficial connections.  

Why Organizations Are Joining the EEA

There are several reasons why the EEA has been a hit. 

Ethereum is the most popular cryptocurrency next to Bitcoin. It is the second-largest in market cap and has maintained that position for a very long time. Also, a lot of the most popular cryptocurrencies today started as Ethereum-based projects – think Tron, EOS, Binance Coin, and so on.  

Ethereum is also home to the ingenious smart contract technology that makes getting into a contract simpler and cheaper than ever before. Smart contracts are self-verifying and self-executing, which removes the need for intermediaries like lawyers, banks, and so on. Many people are interested in technology to see how they can benefit from it.  

Then there are Ethereum’s decentralized applications (DApps), which hold massive potential. DApps are applications that are uncensorable and give users complete control over their personal information – unlike centralized applications like Google, Facebook, etc. For many developers, Ethereum is the go-to blockchain for creating DApps. The reason for this is Ethereum’s solid reputation as the blockchain that made the technology possible. Another reason is the Ethereum Virtual Machine that gives developers access to friendly tools. 

Closing Thoughts

The Enterprise Ethereum Alliance has become a formidable organization in the blockchain space thanks to the value proposition of the Ethereum blockchain and powerful companies that are backing it up. EEA also helped Ethereum’s token – Ether to gain a solid footing in the crypto market. This should be good news for Ethereum investors – they’re assured that Ethereum is not a fad cryptocurrency that’s going to disappear with the wind. And, blockchain enthusiasts should also rest at ease knowing that there are organizations out there that are working daily to advance the cause of technology.  

Categories
Cryptocurrencies

Is Neo an Ethereum Killer? 

If you’re active in the crypto space, then you’ve definitely heard of Neo, a.k.a Ethereum Killer, a.k.a Ethereum of China. Ethereum seems the common denominator in both tags – probably because the two platforms have so much in common so much that China sees it as the challenger and the Asian equivalent of Ethereum. 

If you’re active in the crypto space, then you’ve definitely heard of Neo, a.k.a Ethereum Killer, a.k.a Ethereum of China. Ethereum seems the common denominator in both tags – probably because the two platforms have so much in common so much that China sees it as the challenger and the Asian equivalent of Ethereum. 

If you’re active in the crypto space, then you’ve definitely heard of Neo, a.k.a Ethereum Killer, a.k.a Ethereum of China. Ethereum seems the common denominator in both tags – probably because the two platforms have so much in common so much that China sees it as the challenger and the Asian equivalent of Ethereum. 

However, the platform has taken a different path from Ethereum in some ways, and it’s those ways that merit it some closer examination. 

The name Neo is Greek, and it means new, young, fresh, recent.

Is Neo really fresh? And is it worth the unofficial crown of Ethereum Killer? There is a lot of hype surrounding Neo, but when you lift the lid, you find there are actually some interesting things to discover.

What is Neo?

History of the Neo Blockchain

Neo is the brainchild of Da Hongfei and Erik Zhang. The two have extensive experience in blockchain, having previously formed Onchain, a successful blockchain research, and development company. The Neo project was funded by two ICOs, the first one which happened in a 10-days span in October 2015 and raised $555,000, while the second ICO raised $4. 5 million. 

Components of the NEO System

Neo has a few interesting technical features that make up the Neo ecosystem. These are:  

A Delegated Byzantine Fault Tolerance (DBFT) algorithm – Neo uses a DBFT consensus mechanism that enables the network to resist malicious attempts 

Neo Contract – A mechanism through which developers can create smart contracts in a safe, scalable and high-performance environment using a variety of programming languages 

NeoFS – A decentralized storage that utilizes distributed hash table technology  

NeoQ – a cryptographic mechanism that creates problems that are unsolvable by quantum computers, ensuring the Neo blockchain is quantum-proof. Quantum computing poses a real threat to the blockchain. Many experts agree that it could unravel the blockchain as we know it. NeoQ aims to prevent quantum computing from destroying the Neo ecosystem.   

The Neo Smart Contract System

Neo’s smart contract system comprises three parts: NeoVM (Neo Virtual Machine), IntereopService, and DevPack. Let’s take a closer look at each: 

  • NeoVM

NeoVM is a lightweight virtual machine that’s similar to a virtual CPU and executes smart contracts on the Neo platform. 

  • InteropService 

This is a function that helps smart contracts on the platform have more utility. It enables smart contracts to interact with data from outside the Neo blockchain without putting the system at security risks. This data couple be either transaction, asset, or contract information, and so on. InteropService also hosts smart contracts as storage.

  • DevPack 

This a language compiler that enables developers to create contracts in various languages. 

Neo: Tokenomics

As of March 6, 2020, Neo was trading at $12.28 and ranking at#19 with a market cap of $858, 998, 683. It had a 24-hour volume of $800, 365, 774, a circulating supply of 70, 538, 831, a total supply of 100m, and a maximum supply of the same value. Its all-time high was Jan 15, 2018 (Jan 2015), while its all-time low was $0. 072287 (Oct 21, 2016)

Neo’s Smart Economy

Neo wants to facilitate what it refers to as the “smart economy.” The smart economy comprises these components: 

  • Digital assets
  • Digital identity 
  • Smart contracts 

Digital Assets

A digital asset is anything that’s formatted in a binary form and comes with the right to use it. A digital asset must include the right to use, so it is considered as one. 

Blockchain has enabled a safer environment where individuals own digital assets. With technology, digital assets can be stored in a decentralized, secure, trusted, and third-party-free environment. 

There exists two forms of digital assets that an individual can utilize: 

  1. Global assets 
  2. Contract assets 

Global assets are recognizable by other smart contracts and clients in the system, while a contract asset is recognized only by the smart contract owner. 

Neo Blockchain and Digital Identity

IGI Global defines digital identity as “the data that uniquely describes a person or thing and contains information about the subject’s relationships.”

Digital identities are essential for the digitization of assets to work. 

The Neo platform utilizes the X.509 digital identity standard as well as the Web of Trust point-to-point certificate issuance models. 

Neo verifies identity-based on these features: 

  • Facial features
  • Fingerprints 
  • Voice activation 
  • SMS and others 

Smart Contracts 

Smart contacts that are contracts that take place on a blockchain – making them digital, trustless, and borderless. These contracts are coded so that they will self-execute when specific conditions are met. 

A smart contract must be immutable (unalterable) and be able to run on multiple computers without compromising the integrity of the network. As such, a smart contract needs to have the following qualities: 

  1. Deterministic
  2. Terminable
  3. Isolated  

What does each of these mean? Let’s get a closer look: 

Deterministic: This means that a program will always produce the same output to a given input. E.g., if 4+2=6, then 4+2 will be six every single time. Deterministic systems are designed to eliminate randomness out of a system.  

Terminable: This means that a contract should be able to come to completion after a set period so that it doesn’t go into an endless loop that will waste time and drain resources.    

Isolated: This means that individual contracts will be kept isolated in case of any bugs and malware that they may contain, knowingly or unknowingly. This is so to save the system from being affected by such bugs. 

Is Neo Similar to Ethereum?

Both Neo and Ethereum inevitably have several things in common, but they also differ in some key ways. 

Similarities 

  • Both blockchains provide a platform for developers all over the world to create smart contracts and decentralized applications
  • Both have native coins that power transactions: Ethereum has Ether, and Neo has GAS. 
  • Both have Turing complete, meaning any problem can be solved as long as the machine has enough memory space 

But what makes Neo interesting is not its similarities with Ethereum, but the differences. Neo is one of those projects that get branded “Ethereum Killer” since they do way better than Ethereum in regard to certain functionalities. 

For example, developers can use any codebase out of so many in the Neo platform, including C#, VB.Net, F#, Java, Kotlin, and more. Ethereum, on the other hand, only supports Solidity, its proprietary programming code that requires developers to master it before they can create applications on the platform. This is sort of a barrier to entry that could lock out many developers from the Ethereum ecosystem. 

The Two Tokens: Neo and Gas

The Neo ecosystem has two native tokens: Neo and GAS. These tokens serve different but complementary roles. 

Neo tokens are used to transfer value in the network. Having Neo tokens gives you a stake in the Neo blockchain. Users need to hold Neo tokens to be rewarded with GAS.

GAS tokens are used to enable seamless transactions in the Neo network. You pay GAS for using the Neo blockchain, e.g., subscription fees.  

Is Neo the Ethereum of China? 

Neo is often called the Ethereum of China due to its similarities with Ethereum. It is known in the crypto space that the Chinese government – which is well-known for its chilly attitude towards cryptocurrency – has warmed up to Neo and seeks to position it as the smart contract and DApps industry leader. Of course, this attitude could be a double-edged sword: it could legitimize the platform, but it could also alienate it from the rest of the world.  

How to Buy and Store Neo

You can buy or trade other cryptocurrencies such as Bitcoin and Ethereum in popular exchanges such as eToro, Coinswitch, Huobi, Changelly, Kucoin, Binance, Bitfinex, and so on. 

Some platforms allow you to purchase Neo with fiat money, while others only allow crypto.

Once you’ve bought Neo, it is recommended that you don’t let it sit on the exchange since exchanges are prone to hacking and other attacks. And since crypto transactions are irreversible, once your crypto is gone, it’s gone. 

We recommend storing your funds in tried-and-true wallets such as Guarda, Atomic wallet, NEON Gui – the official Neo wallet for desktop, and so on. Hardware wallets are always the safest option, though, and we recommend Ledger Nano X and Ledger Nano S. 

Neo: Final Thoughts

Neo is certainly ahead of other blockchain and cryptocurrency projects even if just by virtue of its unique Delegated Byzantine Fault Tolerance Mechanism or its getting ahead of the potentially harmful quantum computing. It excels yet again by allowing individuals to digitize assets and developers to build decentralized apps on its network using super-versatile tools. Perhaps Neo is ‘fresh’ after all. The question is, will it keep fresh? Its cheerleaders are banking on that. 

 

 

Categories
Crypto Daily Topic Cryptocurrencies

Ethereum Vs Ethereum Classic

Crypto newcomers will immediately notice two types of Ethereum in the space: Ethereum and Ethereum and Ethereum Classic. What they won’t know is the unfortunate story, turned intrigue, that spawned the existence of these two cryptocurrencies. Ethereum, the most popular blockchain after Bitcoin, was forced to split into Ethereum (ETH) and Ethereum Classic (ETC) in one of the most pivotal events in blockchain and cryptocurrency history. 

Crypto newcomers will immediately notice two types of Ethereum in the space: Ethereum and Ethereum and Ethereum Classic. What they won’t know is the unfortunate story, turned intrigue, that spawned the existence of these two cryptocurrencies. Ethereum, the most popular blockchain after Bitcoin, was forced to split into Ethereum (ETH) and Ethereum Classic (ETC) in one of the most pivotal events in blockchain and cryptocurrency history. 

Crypto newcomers will immediately notice two types of Ethereum in the space: Ethereum and Ethereum and Ethereum Classic. What they won’t know is the unfortunate story, turned intrigue, that spawned the existence of these two cryptocurrencies. Ethereum, the most popular blockchain after Bitcoin, was forced to split into Ethereum (ETH) and Ethereum Classic (ETC) in one of the most pivotal events in blockchain and cryptocurrency history. 

What is Ethereum? 

In broad strokes, Ethereum is an open software blockchain platform on which developers can build and deploy smart contracts and decentralized applications. 

Smart contracts are digital contracts that are self-verifying, self-executing, and do not require intermediaries to represent the contracting parties. Smart contracts are run and are deployed on the blockchain, and they automatically self-enforce when conditions of the agreement are met. Since they run on a blockchain, smart contracts are immune from censorship, fraud, and any sort of outside interference.

Decentralized applications (DApps) on their part are applications that run on a decentralized, peer-to-peer, and deregulated platform. DApps allow the user to retain their personal data, as opposed to centralized applications where user data is in the hands of the organization. Smart contract is the technology that connects DApps to the blockchain.

Enter DAO 

The formation of Ethereum and Ethereum Classic can be traced back to an organization called DAO, or the Decentralized Autonomous Organization. 

DAO was an automated and decentralized organization. It was a sort of venture capital fund that ran without the organizational hierarchy that’s typical with normal organizations. DAO was going to fund DApps built on the Ethereum blockchain. 

DAO was set up to give investors decision-making power over which potential DApp projects would receive funding. Investors would need to purchase DAO tokens – which gave them a stake in the DAO system. DAO tokens were purchased using Ether. 

For a DApp to be green-lit for funding, it had to be whitelisted by ‘curators’ who were basically reputable figureheads in the Ethereum space. Next, the approved DApps would be voted on DAO investors – or the token holders. If the proposal received a 20% approval, it would receive funding, so it gets started. 

This flexible process, together with the transparency and the overall potential of the DAO, was unprecedented, and scores of investors jumped in, hoping to get a piece of the action. In a record 28 days, the project had raised over $150 million of ether. 

Of course, that was all fine and dandy, but what if an investor wanted to get out? What if an approved DApp did not exactly tickle your fancy, was there a way to opt out? As with anything blockchain, the DAO was a democratic process, so yes, there was a way out – called the “split function.”  

Using this function, you could not only get back your ether, but you could also create your version of DAO known as “Child DAO.” If enough DAO token holders joined you, you could even start accepting your own proposals. The only condition was you had to hold out on spending your ether for the next 28 days.  

But it was this same Split Function that brought DAO to its knees. It exposed a huge loophole in the system that could be manipulated by a bad actor. Many people pointed this out, but DAO creators brushed it aside as not a big issue. Except it was, and it was exploited, and the aftermath was the undesirable split of Ethereum into Ethereum and Ethereum and Ethereum Classic. 

The Big and Bad DAO Attack 

The reckoning came on June 17, 2016. A person, or persons, exploited the Split Function and managed to siphon $50m dollars. And because hindsight is 20/20, it’s very clear to see how straightforward the attack was, and how it could have easily been avoided. 

Now, if one wanted to opt-out Of DAO, all they had to do was to submit a request. The Split Function would then do the following: 

  • Refund the user their ether in exchange for their DAO tokens 
  • Update the transaction in the blockchain, as well as the internal token balance 

What the attacker did was they made a recursive function of the request – meaning they made the request repeatedly for the same amount of DAO tokens 

  • The split function happened this way: 
  • DAO receives DAO tokens and gives the user the requested ether 
  • Before DAO can update the transaction, the user makes other requests for the same amount of Ether, making the code repeat the process over and over. 

By the end of it all, $50 million worth of ether was transferred to a child DAO. As you can imagine, the entire Ethereum and DAO community was sent into a panicking frenzy after it was discovered what was going on.   

Now’ it’s very important to point out that the attack took place courtesy to loopholes in the DAO and not Ethereum. 

DAO ran on Ethereum, and DAO had issues. Ethereum was merely the host of the DAO. 

Dao Attack: The Aftermath

Now after the attack happened, people naturally had questions about whether Ethereum and cryptocurrencies, in general, could be trusted. Even though Ethereum was not to blame, a lot of people couldn’t pick apart between it and DAO. Ether nosedived from $20 to $13. 

Now despite the hacker executing the attack, they couldn’t get access to the funds since the DAO smart contract had enforced the 28-day rule – that you couldn’t spend the ether after exiting DAO. This gave the community three options moving forward: 

  • No step would be taken: Some people were against making any changes since that would mean contravening the immutability tenet of blockchain. These people took the “code is law approach.”
  • Execute a soft fork: The majority of the community voted to implement a soft fork. The idea was to segregate the blocks that were involved in the hacker’s transactions so they wouldn’t be able to move the funds. However, this posed another problem: a soft fork opened way for a denial-of-service (DoS) attack, which meant an attacker could manipulate miners to perform malicious transactions. 
  • Implement a hard fork: A hard fork was now the only way to go. Hard forking meant a section of the Ethereum blockchain would branch out at a particular point – which was the point just before the DAO attack. 

After the fork, two completely different chains were born. The new chain went with the name Ethereum, or ETH. A section of the Ethereum community that was against the fork remained ‘loyal’ to the old chain, which in turn took up the name Ethereum Classic (ETC).  

The fork enabled DAO to refund investors the money that had been taken away. For every 100 of DAO, DAO token holders would be given 1 ETH. This caused a sharp disagreement, which added more fuel to the Anti-Hard Fork drive and contributed to the formation of Ethereum Classic.

You need to understand the magnitude of this hard fork. Remember, Ethereum was the most important cryptocurrency after Bitcoin. A hard fork shook not just the Ethereum community but the entire blockchain and crypto space. Gavin Wood, Ethereum’s co-founder, called this moment “the single most important moment in cryptocurrency history since the birth of Bitcoin.”

ETC vs. ETH – An Ideological Split 

The Ethereum split came down to a difference in ideology. The people that stuck with the old chain believed that cryptocurrency is supposed to be resilient against the whimsical decisions of people. According to them, a hard fork was a sellout, a betrayal of what cryptocurrency stood for. If you were splitting the Ethereum blockchain, you were defeating the very purpose of its existence – to represent a non-corrupt finance system. 

ETH Vs. ETC

Because these two are a split of the same chain and given the contentious history between them, it’s only natural that comparisons will be drawn. 

The biggest problem with ETC is that it is not backward compatible with the ETH hard fork. Also, the movers and shakers of the Ethereum community went with the new chain. This means users of the old chain will not have access to any updates on the new chain, like the upcoming move from Proof of Work to Proof of Stake. 

For ETH, the issue is the new chain violated the “code is law” principle. There is also the glaring question of: how can we know the chain will not be capriciously hard forked again in the future? Are there already hard forks forming different versions of ETH? Even though the latter is conspiracy theories, it creates a climate of distrust in the public, which could lead to a devaluation of the coin.    

Having said that, let’s look at the pros and cons of each cryptocurrency: 

ETC

Pros

  • Adheres to the immutability tenet of blockchain 
  • Has the support of some big-time loyalists 

Cons

  • Users cannot enjoy any updates on ETH
  • The support of the vast majority of heavyweights in the community moved to ETH

ETH 

Pros

  • Has the support of the majority of the earliest big-time developers including Ethereum’s founder Vitalik Buterin 
  • It is possible to update the software with new changes 
  • Enjoys a higher hash rate
  • Has the backing of the Enterprise Ethereum Alliance (EEA)  

Cons

  • Betrayed the philosophy of immutability 

How Do ETH and ETC Stack Up in the Market? 

As of February 06, 2020, ETH is the more successful cryptocurrency of the two coins – at a market rank position #2 next only to Bitcoin. The crypto is trading at $236.42, while ETC is trading at $8.17 while ranking at #18. ETH has a market cap of 26 billion, while ETC stands at $950 million. 

ETH has enjoyed an all-time high of $1.432.88 (Jan 13, 2018), while ETC’S all-time was only $47.77 (Dec 21, 2017). 

ETC Vs. ETH – Final Words

In the never-ending ETC vs. ETH competition, ETH always comes out the winner as the vast majority of Ethereum developers, users and supporters have stuck by its side. ETH may have violated some blockchain principles, but the community bundled together and made something great out of the absolute disaster that was the DAO hack. That is a victory it will always have up in its notch. 

ETC, on the other hand, remains stained by the DAO attack, and the argument that it’s held together by sympathizers, blockchain loyalists, and pure market speculation. 

What’s for certain is that both chains have their loyal bases, and each of them has clout that’s unique to them. As for the battle between them, the common phrase, “it’s not over yet,” applies.

 

 

Categories
Cryptocurrencies

Breaking down ZCash

The first-ever blockchain, Bitcoin, is pretty much an open ledger where all and sundry can see your transactions, and those transactions can be traced back to you, if need be. While this level of transparency is partly what endeared many to Bitcoin, it is not amenable to the notions of privacy that are increasingly prevalent in today’s world.

The first-ever blockchain, Bitcoin, is pretty much an open ledger where all and sundry can see your transactions, and those transactions can be traced back to you, if need be. While this level of transparency is partly what endeared many to Bitcoin, it is not amenable to the notions of privacy that are increasingly prevalent in today’s world.

The first-ever blockchain, Bitcoin, is pretty much an open ledger where all and sundry can see your transactions, and those transactions can be traced back to you, if need be. While this level of transparency is partly what endeared many to Bitcoin, it is not amenable to the notions of privacy that are increasingly prevalent in today’s world.

Is there a way we can take advantage of blockchain technology without sacrificing privacy? Several cryptocurrencies intending to answer that very question have sprung up in recent years. Zcash, a crypto-based on the Bitcoin code base, is one of them.

This article scratches beneath the surface of this privacy coin to look at how it works, who created it, and how it stacks up against other cryptocurrencies in terms of performance.

What is Zcash?

Zcash is a decentralized, peer-to-peer, and privacy-focused cryptocurrency. It is based on the Bitcoin code and was launched in October 2016. It was first called the Zerocoin protocol, then the Zerocash system before finally going by the name Zcash.

Zooko Wilcox, the founder of Zcash, describes it as “another blockchain and cryptographic money which permits private exchanges (and by and large private information) in an open blockchain. This permits organizations, buyers, and new applications to control who gets the chance to see the points of interest of their exchanges, even while utilizing a worldwide, authorization-less blockchain.”

The Team behind Zcash

Zcash is the product of a mix of engineers, scientists, and designers around the world. In the team are graduates from some of the leading universities from around the world, including MIT, Johns Hopkins, and Tel Aviv University. The team’s leader and also founder OF Zcash is Zooko Wilcox, who has 20+ years of experience in open and decentralized systems as well as cryptography.

There’s also the Zcash Foundation, a non-profit whose mandate is maintaining and constantly improving the Zcash protocol to accurately represent the interests of current and future users as well as the community. The foundation was launched in 2017.

How Zcash Works and Its Privacy Model

Zcash works by encrypting transaction details via zk-SNARK – a zero-knowledge proof protocol. Before we talk about zk-SNARK, let’s first get an idea of what zero-knowledge proof is.

What is Zero-Knowledge Proof (ZKP)

 The concept of zero-knowledge proof harks back to the 1980s when 3 MIT researchers – Shafi Goldwasser, Silvio Micali, and Charles Rackoff were working on interactive proof systems, and they stumbled on the idea of having knowledge of proof without revealing that knowledge.

The zero-knowledge proof concept has two parties: the prover and the verifier. A prover can prove to the verifier that they possess certain information without revealing what that information is. A ZKP must possess the following parameters:

  • Completeness: The statement must be true so that a verifier can be convinced of it without proof
  • Soundness: The statement must be true in a way that a lie in its stead would not convince the verifier
  • Zero-knowledge: The verifier has no idea what the information is

What is Zk-Snarks?

Zk-Snark stands for “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge.” Zk-Snarks are mathematical proof constructs that see to it that a transaction takes place without its details being divulged. These details include sender, recipient, and amount. Zk-Snarks also plays the role of preventing double-spending.

The Problem with Bitcoin’s Transparency

Bitcoin is the first cryptocurrency and one that a lot of cryptocurrencies are modeled after. On the Bitcoin blockchain, the world can see the details of transactions that took place, such as the public key. This transparency is a welcome idea, especially when preventing criminal activity from being conducted using the currency. But it’s also the crypto’s pitfall, especially in modern times when privacy is highly valued and protected.

Businesses also have the need to keep their most sensitive information away from the eyes of competitors and other interested parties. Companies also want to keep employee information, including salaries, from other employees and the public in general. Both these scenarios are not possible on the public Bitcoin blockchain.

Zcash’s Selective Disclosure

On the Zcash platform, transactions can either be “transparent” or “shielded.” Transparent transactions happen through the t-addr, or ‘transparent addresses while shielded addresses happen through the z-addr, or the zero-proof address. This is what’s referred to as “selective disclosure” of Zcash transactions. Users can choose whether to send funds using transparent or shielded addresses. Usually, a user can send funds publicly to a private address and vice versa.

This selective disclosure affords users the choice to comply with industry, tax, and legal obligations when and if required. For example, a user can prove that they own at least a thousand dollars without revealing the exact amount. As well, you can use this feature to comply with auditing requirements by providing payments.

Tokenomics of Zcash

Zcash is a fork of Bitcoin and has the same maximum supply of 21 million as Bitcoin. Zcash’s coins will all be mined by 2032, and block rewards get halved every four years as a deflationary measure. As of March 3, 2020, Zcash is trading at $51.85 with a market cap of $478, 526, 912, and #27 ranking. Its 24-hour volume is $370, 092, 058, and it has a circulating supply of 9, 228, 331, and a total supply of the same value. Zcash has an all-time high of $5, 942.80 on October 29, 2016, and an all-time low of $25.45 on November 25, 2019.

Where to Buy and Store Zcash (ZEC)

You can purchase ZEC from these exchanges, among other popular ones: Coinbase, Cointree, Gemini, Bithumb, Kraken, Huobi, YoBit.Net, Changelly, and etoro. Some exchanges will allow you to buy directly with fiat currency, while others will require you to first purchase Bitcoin or another crypto such as Ethereum to trade it for Zcash.

You can store your ZEC on the Linux command line client wallet known as zcashd. This option is good for you only if you know your way around computers or are sufficiently tech-savvy. There’s also a desktop wallet by the Cash foundation that supports Linux, Windows, and Mac. Other desktop options include Jaxx and Exodus.

If you’re more into hardware wallets – and you should – since they’re the safest option, you’re in luck because user favorites such as Ledger and Trezor both support the coin.

The Bottom Line

Zcash is a cryptocurrency that provides the decentralized, peer-to-peer model of transactions while keeping them private. Users, businesses, and organizations looking to combine the benefits of blockchain technology with privacy are right at home with Z-cash. They also get to comply with regulations without giving everything away. Zcash offers the world the benefits of blockchain without sacrificing their privacy. And with the world valuing privacy more than ever, Zcash is set to move only forward.

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Cryptocurrencies

Weaknesses of Blockchain

Blockchain, the technology that underlies cryptocurrencies, constitutes distributed ledgers shared across nodes (computers) participating in the network. These ledgers record data in a sequential fashion after cryptographically securing it. Once data is recorded on the blockchain, it can’t be deleted. This, among many other features of blockchain, like transparency and being deregulated, has given blockchain tech a revolutionary reputation.

Blockchain, the technology that underlies cryptocurrencies, constitutes distributed ledgers shared across nodes (computers) participating in the network. These ledgers record data in a sequential fashion after cryptographically securing it. Once data is recorded on the blockchain, it can’t be deleted. This, among many other features of blockchain, like transparency and being deregulated, has given blockchain tech a revolutionary reputation.

Blockchain, the technology that underlies cryptocurrencies, constitutes distributed ledgers shared across nodes (computers) participating in the network. These ledgers record data in a sequential fashion after cryptographically securing it. Once data is recorded on the blockchain, it can’t be deleted. This, among many other features of blockchain, like transparency and being deregulated, has given blockchain tech a revolutionary reputation.

But some of these features have also proven to be the Achilles heel for blockchain. This article dives into some of the weaknesses of blockchain as it stands today.

i) 51% Attack

Consensus algorithms that help protect blockchains, like the bitcoin blockchain, have proven resilient over the years.

However, there’s the 51% attack threat that’s always hanging over these blockchains like the sword of Damocles. A 51% attack would occur if an entity managed to gain control over 50%+ of the network. This would disrupt the network by allowing such things as double-spending, excluding valid transactions, or altering the correct order of transactions.

ii) Data Modification, Or Lack of It

Once data is recorded on the blockchain, it’s immutable. Immutable means it’s unalterable. While this promotes accountability and reduces chances of fraud, it’s not always favorable for blockchain. Humans are prone to making mistakes, and once inaccurate information is stored on the blockchain, it can never be changed.

iii) No Customer Protection

Blockchain technology operates on the basis of the individual holding power over the asset they are verifying on the blockchain – whether it’s a title deed, a cryptocurrency, etc. Naturally, transactions go sour sometimes. In a scenario where this happens, the only way to overturn the transaction is if both parties agree, which might prove a tall order. This is unlike a centralized system where an arbiter mediates between two conflicting sides.

iv) Slow Settlements

Before any transaction is verified on the blockchain, all nodes must come to a consensus about the validity of the transaction. This is way slower than say, a bank verifying your transaction at the counter. And in the time between when a transaction is lodged and when it’s verified, a malicious actor can enter and execute malicious transactions.

v) Miners Can Be Selfish

On blockchains such as Bitcoin’s, mining is a process that incentivizes network participants to commit computer processing power and then gets rewards in the form of coins or a fraction of transaction keys. However, this has a downside. Miners may not be very concerned about settling the optimal number of transactions. All they care about might be finding the next block as quickly as possible in order to verify it and get rewarded.

There’s also the case of Selfish Mining, a.k.a block withholding attack, in which a miner finds and validates a block but does not broadcast it to the rest of the network. This results in the miner having more ‘proof-of-work’ than other miners in the pool and increasing their odds of unfairly getting more block rewards.

vi) Private Keys

Blockchain uses what are known as private keys to give crypto owners full control over their funds and data. Users need their private keys to access their funds and conduct transactions. This means if you own cryptocurrency, the security of funds is solely on you. In other words, you’re your own bank.  Once a user loses their private key (either by forgetting the seed phrase or misplacing their hardware wallet), their crypto holdings are effectively lost, and there is no recourse.

vii) Inefficiency

Blockchains that, for instance, use proof-of-work consensus mechanisms, are incredibly inefficient. This is because they store the entire history of transactions that ever occurred on the blockchain. This takes up massive storage capacities across devices. To make a transaction, the entire downloading and verification process needs to be completed. This could take several days – spelling crippling inefficiency about the network.

Viii) Storage Issues

As blockchains get more popular, it means more and more users are interacting with the network. This increases the size of the blockchain. We’re talking about hundreds of gigabytes of storage. This puts the network at the risk of losing nodes when people find the ledger too huge to download and store in their devices. And this puts the health of the blockchain in jeopardy since the health of a blockchain partly depends on how many nodes are supporting the network.

ix) Scalability Issues

To demonstrate the scalability issue of blockchain, let’s look at the most widely applied blockchain – the Bitcoin blockchain. It takes around 10 minutes for a transaction to be verified, translating into an average of 7 transactions per second. Compare this with Visa, which processes an average of 2,000 transactions per second. What this means is blockchains are still a long way off from achieving the level of scalability that they would need to be able to serve millions of customers around the world.

Final Thoughts

The idea here is not to discredit blockchain but point out how the technology could improve. Blockchain is not referred to as revolutionary for no reason. Developers are coming up with new solutions for blockchain’s weak spots every other day. Some of these are the Lightning Network, a technology that promises to improve Bitcoin’s scalability by offloading some transaction data off the blockchain so as to facilitate faster transactions. Industries of all types are also exploring technology so as to achieve more efficiency in processes. Despite its weaknesses, blockchain remains a technology to reckon with.

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Cryptocurrencies

Blockchain Operating Systems: Everything you’ll ever need to know

The days when blockchain was only associated with Bitcoin seem to be behind us now. Blockchain technology is currently being explored for all manner of applications. We’re currently talking about blockchain operating systems as the next blockchain trend.

The days when blockchain was only associated with Bitcoin seem to be behind us now. Blockchain technology is currently being explored for all manner of applications. We’re currently talking about blockchain operating systems as the next blockchain trend.

The days when blockchain was only associated with Bitcoin seem to be behind us now. Blockchain technology is currently being explored for all manner of applications. We’re currently talking about blockchain operating systems as the next blockchain trend.

A blockchain operating system is one that employs blockchain tech as the support in the background. Think of your Android smartphone or Windows PC. These devices operate on the basis of a supporting system in the background, with all the commands being executed on the surface. A blockchain OS works by capturing all commands locally, but with the authenticating, execution, and recording of the commands happening on the blockchain.

Blockchain operating systems are still very much in the nascent stage, and a quick search through the internet reveals several projects are hoping to claim the title of “the world’s first blockchain operating system.” However, most of these projects are not clear on what solution they provide, while others offer a product that’s so far from the concept.

Having said that, we were able to pin down two blockchain operating systems that are up and running, while another is still in beta, but shows strong promise. Let’s look at those projects right after exploring how a blockchain operating system works.  

How a Blockchain Operating System Works

A blockchain works pretty much like a transaction processing engine. Whether processing a payment, tracking the shipment from the warehouse to your doorstep, blockchain applications are all about authenticating, recording, and processing transactions. It’s the same way that any operating system works – commands (transactions) are issued via mouse clicks or screen taps, and the user performs all tasks on the device.  This is the same concept that blockchain operating systems are based on – with them being viewed as more efficient than traditional operating systems.

Examples of Blockchain Operating Systems

ConsenSys Codefi

ConsenSys Codefi is a blockchain operating system that’s an offshoot of ConsenSys, a blockchain company that’s been in existence since2014.

In a September 2019 release statement, the project describes itself as “a product suite built for the next generation of commerce and finance…utilizing blockchain technology to optimize business processes and payments, digitize financial instruments, and build a customized decentralized applications.”

The Codefi platform is built atop Ethereum and aims to help everyone – from entrepreneurs to the banking system, decentralized networks and developers – benefit from the blockchain technology revolution. Through Codefi, organizations and individuals can digitize processes and assets ranging from equities to loans to real estate.

Its product suite comprises four products:

  • Codefi Assets: A platform to create, issue and manage digital assets on public or permissioned networks
  • Codefi Networks: A collection of tools to empower individuals to utilize crypto
  • Codefi Payments: A platform with a single dashboard in which individuals can interact and transact with cryptocurrency
  • Codefi Data: An engine for managing data, analytics, and risk for cryptocurrency and blockchain networks

LibertyOS

LibertyOS calls itself the “world’s first blockchain operating system.”

A look through its landing page shows the project is still in beta and is still asking for people to invest in the project.

It has a native token, the LIB token, through which advertisers can buy ad-space, and users can earn money through watching those ads – in a safe, clean and spam-free environment. Through this model, LibertyOS hopes to be self-sustaining.

The LibertyOS platform intends to be big on privacy and security, even incorporating a TOR browser. User behavior will not be tracked or recorded on the platform.

The team behind LibertyOS has combined skill and experience from industry leaders such as Microsoft, Google, Amazon, and IBM and education from top universities such as UC Berkeley, Stanford, and Harvard.

Nynja Virtual Operating System

Hong Kong-based NYNJA Group Ltd. has collaborated with Amgoo smartphone manufacturers to distribute its blockchain-based virtual operating system on the company’s phones. The vOS has a communications layer supporting voice, text, and video conferencing tools, alongside project management, e-commerce, and smart contract features, as well as developer tools and business solutions.

On the NYNJA platform is also a multi-currency wallet that supports Bitcoin, Ethereum, and all ERC-20 tokens. Individuals can also exchange digital goods like music, templates, photos, code, and services like translation, design, consulting, and so on. The NYNJA marketplace works very much like the Uber model – you can get a pre-qualified professional to work instantly on your project at the touch of a button.

Final Thoughts

With blockchain operating systems, users will have all the advantages of blockchain: security, privacy, decentralized apps, and so on – right on their computers and even mobile phones.

As of early 2020, Blockchain operating system is still a very young technology. It may take a few years before we see fully-fledged blockchain operating systems. After all, computer operating systems took decades before they became mature, functional operating systems. Bitcoin itself took five years before seeing any transaction, and yet it has spawned an entire unstoppable industry. What’s truly certain is that we’re going to be seeing many exciting blockchain operating systems in the future.

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Cryptocurrencies

A Beginner’s Guide to Tezos

Tezos is one of the most controversial cryptocurrencies to grace the scene. After a wildly successful July 2017 ICO that collected $232 million, its launch was postponed with controversy after another. However, the crypto finally launched in September 2018, rising above the cacophony to become the tenth most successful cryptocurrency as of February 26, 2020.

Tezos is one of the most controversial cryptocurrencies to grace the scene. After a wildly successful July 2017 ICO that collected $232 million, its launch was postponed with controversy after another. However, the crypto finally launched in September 2018, rising above the cacophony to become the tenth most successful cryptocurrency as of February 26, 2020.

Tezos is one of the most controversial cryptocurrencies to grace the scene. After a wildly successful July 2017 ICO that collected $232 million, its launch was postponed with controversy after another. However, the crypto finally launched in September 2018, rising above the cacophony to become the tenth most successful cryptocurrency as of February 26, 2020.

And this crypto-only seems to be growing stronger – it’s one of the cryptos to witness a bullish first quarter of the year.

So, what is Tezos? Let’s do a deep dive into Tezos, its unique selling point, and the controversy that once threatened to derail it.

Who is Behind Tezos?

The team behind Tezos is Arthur Breitman and his wife, Kathleen Breitman. Between them, they have a wealth of computer science, Mathematics, and finance experience. Arthur has previously worked for Goldman Sachs and Morgan Stanley, while Kathleen has work experience from Bridgewater Associates and R3.

Tezo’s On-Chain Governance and Self-Amending Protocol

Before we dive into Tezos, we need to understand the meaning of a ‘fork’ in the context of blockchain.

Blockchain, like software, needs to be updated from time to time to improve its functionality in one way or another. A software upgrade is known as a fork – which can either a soft fork or hard fork. A soft fork is backward compatible, but a hard fork is not.

Backward compatibility means the ability of the new version to interact with the older version. Once a hard fork is implemented, there’s no going back whatsoever. If you don’t upgrade to the new version, you can’t access the latest update or interact with participants in the latest version in any way.

Now you need to understand that forks are not a bad thing: if anything, updates are what makes a blockchain amenable to changing times and user demands.  The only problem is when hard forks cause rancor within a blockchain community.

We are all aware of the most contentious hard forks of all time – the ones that split both Bitcoin and Bitcoin Cash. Bitcoin was split into Bitcoin and Bitcoin Cash, and shortly after, Bitcoin Cash itself split into Bitcoin Cash and Bitcoin Satoshi Vision (SV). The Bitcoin Cash split was especially marked by extreme animosity between the two camps complete with name-calling and threats and the so-called hash wars.

The hash wars were pretty much the two camps using their mining resources to outdo the other chain. Ultimately, it was unnecessary theatrics that actually plunged the whole crypto market and promoted a bad rap against the blockchain and crypto industry.

This is the kind of contention Tezos is trying to avoid. Kathleen Breitman, the Tezos co-founder, said this in an interview with BreakerMag: “The great irony of Bitcoin is that it’s ultimately a tool for community consensus, but it’s [marred by] a tremendous amount of animosity. Tezos allows for innovation to happen in a systemized way as opposed to one born of politics. You’ll not find two people who loathe politicking more than Arthur and me. That’s the idea behind Tezos: let’s formalize this extraordinarily informal process.”

The Tezos’ Way

Tezos hopes to avoid divisive hard forks via what they call ‘self-amendments and on-chain governance.’ The self-amendment concept is meant to prevent the chain from undergoing a hard fork when it needs to upgrade. On-chain governance, at its simplest, means that users will vote over any proposed amendment. Combining the two means that voting can be modified, or the chain can be amended when necessary. The result is a frictionless process that allows the evolution of the blockchain without a hard fork. 

This is how it works:

  • Developers independently submit proposals for protocol upgrades together with an invoice for compensation of their idea
  • The compensation is meant to incentivize developers to contribute to the network  
  • The community puts the proposal into a trial and points out areas that can be improved or removed
  • After rigorous testing, Tezos stakeholders vote on whether the protocol should be implemented or not
  • If the vote favors an upgrade, a ‘hot-swap’ is carried out, and the new protocol is set in motion

This process ensures a decentralized and democratic approach to protocol upgrades by ensuring approval from the bigger section of the community. It’s a peaceful and yet effective approach for improving the Tezos platform.

The Baking process

Amusingly, Tezos calls its staking process “baking.” The baking process is as follows:

  • Bakers are granted block validation rights according to the amount of stake they own in Tezos
  • A block is baked (produced) by a random stakeholder and endorsed by 32 stakeholders (bakers) who are also randomly chosen 
  • Upon verification, the block is recorded on the blockchain
  • If a block is successfully validated and added on the blockchain, the baker is given a block reward and a percentage of the fees from that transaction

Token holders can delegate their baking rights to other token holders without relinquishing their ownership of the tokens. When the baking process is completed, the baker shares its rewards with the other delegates. A baker will be punished for acting dishonestly e.g., not sharing rewards, charging high fees, or attempting a double spend or propagating blocks on different branches. 

Token holders can easily switch delegates and, as such, can threaten to delegate elsewhere – this fosters coordination instead.

Liquid Proof of Stake

To understand Tezo’s liquid proof of stake, we need to understand the proof of stake mechanism (PoS) and then the delegated proof of stake mechanism. PoS was invented to improve on Bitcoin’s proof of work mechanism, which is too slow and consumes too much energy.

The proof of stake mechanism works as follows: 

  • Validators commit some coins as stake
  • They initiate the block validation process i.e., they identify blocks that can be added onto the blockchain, then initiate the verification process by placing a bet on it.
  • When a block is successfully validated and recorded on the chain, the validators receive a reward proportionate to their bets

However, the PoS mechanism includes the entire community and may prove to be problematic for scalability in the long run. For this reason, newer blockchains are designed with a delegated proof of stake (DPoS) protocol. DPoS means delegates are selected beforehand.

The Tezos consensus mechanism is a lot like this but slightly different. Instead of a hard and fast rule about the choosing of delegates, it’s completely up to a network participant to decide if they want to be involved in the validation process or not. In short, delegation is optional, or ‘liquid.’

Tezos’ Architecture

Any blockchain utilizes the following three layers:

  1. Network protocol – responsible for discovering blocks and broadcasting transactions between nodes
  2. Transaction protocol – a transaction layer that defines what a valid transaction is
  3. Consensus protocol – determines how an agreement on the validity of transactions is achieved

Tezos combines the last two protocols to form a ‘Blockchain Protocol.’

Tezos breaks from this using a generic ‘Network Shell’ that’s compatible with the different transaction and consensus protocol mechanisms. The Network Shell facilitates interaction between the network protocol and the blockchain protocol and is agnostic (amenable) to both the transaction and consensus protocols.

Controversy Surrounding Tezos

The Tezos we know today almost never was – thanks to a cloud of controversy, it was mired in from the very beginning. Let’s look at the issues one by one below:

Intellectual Property Row

First off, the company behind Tezos is called Dynamic Ledger Solutions (DLS), while the one that was put in charge of the ICO contributions is the Tezos Foundation.

DLS retained intellectual property rights over the Tezos source code. As per the ICO agreement, the Breitmans would set up a foundation (the Tezos Foundation), which would then buy out DLS (including the property rights) for the sake of the community.

However, the agreement had been that the Breitmans and Tim Draper, a venture capitalist, would receive 8.5% of the funds raised from the ICO as well as 10% of the circulating Tezzos. A document outlining the relationship between DLS and Tezos foundation and for the “interest of privacy” was pulled from the companies’ websites with no explanation. 

Internal Power Wrangles

The next controversy was the Breitmans getting into a public dispute with a member of the board and the President of the Tezos Foundation, Johann Gevers. The story is that Gevers, being in control of the funds from the ICO, would not release the funds.

The squabble caused unrest within the community and caused the coin to plummet in value. The Breitmans put out a censuring statement on Gevers peppered with terms such as “self-dealing, self-promotion, and conflicts of interest.” The prolonged and adverse media attention eventually pushed Gevers, and the Tezos Foundation board members to step down. They were replaced by two community members Michel Mauny and Ryan Jesperson.

KYC/AML

For the next few months, updates from the Tezos foundation were scarce as the community waited for any sign. Then the Tezos foundation unexpectedly announced that Know Your Customer/Anti-Money Laundering checks would be required from the contributors to the ICO from the year prior. This caught investors off-guard since the ICO was already a year old by then. This announcement was met with disapproving reactions from the community. 

Tokenomics of Tezo

Tezos was trading at $2.59 as of February 26, 2020. It was ranking at #10 in market cap with the value of $1, 816, 801, 431, and a 24-hour volume of $237, 062, 869. Its circulating supply was 701, 996, 666, with an all-time of $4.46 on July 01, 2018, and an all-time low of 0.314631 on December 07, 2018.

Where to Buy and Store Tezos

You can buy Tezos directly from or trade another crypto such as Bitcoin or Ethereum and then exchange it for Tezos (XTZ) on crypto exchanges such as Binance, Coinbase, Kraken, Cointree, Huobi, Bittrex and so on.

There’s currently no official wallet for Tezos. Like for any other cryptocurrency, it’s highly recommended you store your XTZ on a hardware wallet. Some great options include Trezor and Ledger Nano.

Concluding Thoughts

Tezos brings an interesting perspective into the blockchain space – the idea of the autonomous amendment and on-chain governance. And its success after another may be an indication that the crypto was cut for the future despite what many believed. Its success will depend on how it continues to innovate in an ultra-competitive crypto space.

 

 

Categories
Cryptocurrencies

Centralized Vs Decentralized Storage: How Blockchain is Redefining Data Storage

Today, data is more valuable than ever before. Whether it’s individual or company data, we treasure our data because it contains memories, sensitive information, transaction records, and financial records, and so on. In some ways, data is more valuable than money itself. And everyone wants fast and secure access to their data.

Today, data is more valuable than ever before. Whether it’s individual or company data, we treasure our data because it contains memories, sensitive information, transaction records, and financial records, and so on. In some ways, data is more valuable than money itself. And everyone wants fast and secure access to their data.

Today, data is more valuable than ever before. Whether it’s individual or company data, we treasure our data because it contains memories, sensitive information, transaction records, and financial records, and so on. In some ways, data is more valuable than money itself. And everyone wants fast and secure access to their data.

Data storage is the recording of information in a medium such as a computer or another sort of an electronic system. And decentralized storage is the storage of data in multiple servers or computers where files are protected with blockchain and cryptography. Since data is stored across a network of multiple computers, no one authority can regulate or control it.

Centralized storage represents the existing model of storing data where your data is stored on third-party servers. While the centralized storage solution has served us well since the age of the internet, it has inherent weaknesses that make it less than ideal for fast-changing customer preferences on how and when they want their data.

This article prods a little on the evolution of the internet and how it changed the storage function and explores the fallibility of centralized storage in juxtaposition with decentralized storage. We’ll also look at some of the exciting decentralized storage projects that are using blockchain technology to offer more secure, effective, and easy-to-access storage services.

The Evolution of the Internet

In the early days of data storage, we stored and shared data thorough rather rudimentary devices such as floppy disks. Over the years, we progressed to CDs, hard disk drives, and so on. These had a larger space for storage, but the core concept didn’t change. You still had to move around with the data storage device, rendering your data susceptible to loss and damage.

Upon the advent of the internet, the storage and sharing of data got a new form. We can now connect with computers from all over the world and access information, pictures, and data and more anywhere and anytime. We’ve come far from the days when you had to own and maintain your own server to the current pay-as-you-use model, and then to cloud services like Amazon’s S3 that provide better scalability, security, and performance. However, despite all this progress, the current iteration of the internet is still problematic in a number of ways.

The Problems with Traditional Internet

Censorship

The current centralized model of the internet renders it vulnerable to the whims of authoritarianism. An example is China, in which the online encyclopedia – Wikipedia, is blocked. Or when governments of tyrannical countries shut down the internet during an uprising. With decentralized platforms, people from such countries can still access information.

Relinquishing Control of Data

With centralized storage, companies and users usually hand over data to third party services. From then on, the data is beyond their control, as are the privacy settings protecting that data. Also, the party that you’re entrusting to store your data is more than likely only incentivized by profit. As such, they’ll make decisions that advance their bottom-line without much regard for your business model. A good example is Google’s change in the algorithm, which has put many marketing companies out of business.

Mismanaging of Data

Everyone knows about the Facebook and Cambridge Analytical scandal. Due to negligence by the social media giant, the Cambridge Analytica was able to put its hands on the data of millions of Facebook users and use that data to manipulate elections in several countries. The data was so eerily detailed that the psychographic profiles the company created could accurately suggest what kind of advertisement would be persuasive enough for an individual in a given location for a certain political end.

Another mismanagement debacle is the Deep Roots Analytics case in which the data firm stored details of 198 million Americans on a cloud server for almost two weeks without password protection. The data included names, email, and telephone contacts, home addresses, voter IDs, etc.

Expensive

To put it mildly, centralized data storage is expensive. To begin with, renting cloud storage is expensive on its own. And when you access it over and over again, the bills pile on. Also, costs are arbitrarily determined by the hosting company with little or no say from clients, or no incentive to use the service at all.

Advantages of Centralized Storage

Advanced Security

With decentralized storage, users’ files are split across multiple nodes in the network. Since the data is stored in all those nodes, it’s more secure as there’s no single point of failure. 

Higher Liveness

Liveness is a computing term to describe the ability of a system to stay up and running, even if certain parts of that system are not functioning optimally. In a centralized system, once the server fails for any reason, it brings down the entire system with it.

Decentralized Storage Projects

Rootstock (RSK)

Rootstock is a smart contract platform connected to the bitcoin blockchain through a sidechain. It features a technology stack called Rootstock Infrastructure Framework Open Standard (RIFOS). RIFOS is currently working on a storage application called ‘RIF Storage.’ RIF will improve storage in the following ways:

  • It will feature a unified interface that will allow for the encrypted and decentralized storage and streaming of information
  • It will offer a variety of options for users – from decentralized swarm storage to cloud and physical storage

On the RIF platform, you will also access several decentralized storage services such as IPFS and Swarm.

The partnership between RIF and Swarm, a distributed storage platform and content distribution infrastructure, will see to the following:

  • An incentivization system for users, combined with  a settlement and payment mechanism
  • The building of accounting functionalities between nodes
  • Enhance interoperability and antifragility to strengthen Swarm as a multi-blockchain decentralized storage platform.

Sia

Sia is a decentralized, blockchain-based cloud storage platform. Here, users can interact with each other in a peer-to-peer (P2P), secure and censorship-resistant environment. The Sia model works this way: individuals with extra hard drive space can rent it out and earn money from it, and individuals who need storage space can lease it at little cost.

And unlike centralized storage platforms where you pay more when you access your files for more than a preset frequency, the Sia platform allows you to upload and download files however much you want, as long as the contract funds remain in place. Also, renters are protected from fraud thanks to Sia’s proof-of-storage concept that ensures hosts only receive payment when they present proof of storage.

In this peer-to-peer model, the hosts have the right to advertise their services and also turn down storage requests for data that’s too sensitive, ethically ambiguous, or illegal. On their part, renters have the right to split up their files between various hosts, increasing their safety. They can also pay extra to receive special treatment, such as faster upload speeds and other preferential treatment.

Storj

Storj is an open-source, decentralized storage solution built on Ethereum. It features a suite of decentralized applications that allow you to store and share data in a secure environment thanks to encryption, sharding, and a distributed hash table.

Sharding is a process that fragments the files so that they are shared between users in the network. Anytime you want to access a file, Storj locates all the shards and pieces them together using the hash tables. The files are encrypted before they are shared, and only the owner can access or view them. And even if one of the nodes sharing the files goes down, you can still access the file.

Concluding Thoughts

Decentralized storage could turn upside down the storage function as we know it, thanks to a P2P, a highly secure model, and the freedom to access info and data anywhere and anytime. These projects are some of the trailblazers in this space, and we can be assured of other projects with more amazing and user-interactive features. It will be fascinating to see how this space evolves in the coming years.

 

Categories
Cryptocurrencies

Is Celer Network the Most Advanced Layer-2 Scaling Platform?

While the first generation of blockchains inspired us with dazzling qualities such as decentralization, immutability, and radical transparency, it has also proven to have scaling issues as interest in cryptocurrency surges. For this reason, many cryptos have sprung up to address the scaling issue and even do even more. 

While the first generation of blockchains inspired us with dazzling qualities such as decentralization, immutability, and radical transparency, it has also proven to have scaling issues as interest in cryptocurrency surges. For this reason, many cryptos have sprung up to address the scaling issue and even do even more. 

While the first generation of blockchains inspired us with dazzling qualities such as decentralization, immutability, and radical transparency, it has also proven to have scaling issues as interest in cryptocurrency surges. For this reason, many cryptos have sprung up to address the scaling issue and even do even more. 

The Celer Network is one such crypto project, and it promises to provide a new blockchain experience for users through interactivity, topnotch security, and low or zero fees to create and interact with decentralized applications and smart contracts.  

The Celer Network is the brainchild of a team with PhDs from some of the most prestigious universities in the world, including MIT, UC Berkeley, Princeton, and experience from tech giants like Google, Amazon, Cisco, HP, and more.

In this article, we go deeper into the Celer Network and discover what makes it stand out from other crypto projects.

Crypto’s Scalability Problem

As cryptocurrency has become more popular in recent years, it has become clear that the traditional architecture of blockchain cannot really support millions of users. Nothing has made this clearer than Cryptokitties, a game atop Ethereum’s blockchain that allows users to buy, breed, and sell virtual cats. 

This game became so popular, with a massive surge in users, that the Ethereum blockchain couldn’t support it optimally anymore. As such, transactions took days to be completed. The developing team had to increase transaction fees to reduce the traffic on the blockchain. 

The Celer Network

Breaking down Celer

At its very core, the Celer Network comprises two components: 

  • cStack – Celer’s off-chain architecture that can be integrated on different blockchains
  • cEconomy – the network’s cryptoeconomics (combination of cryptography and economics) model. 

cStack

cStack features these layers: 

  1. cChannel: A generalized state channel and a side chain suite that maximizes utilization of liquidity
  2. cRoute: An optimal transfer route with high throughput 
  3. cOS: A developed framework that supports off-chain enabled applications
What is cChannel? 

As an off-chain solution, cChannel utilizes the two underlying components of off-chain platforms: state channel and sidechains. 

A state channel is one that allows two-way communication between participants, allowing them to conduct transactions outside of the blockchain. A state channel has these characteristics: 

  • A segment of the blockchain is locked up via a smart contract arrangement
  • Participants in a transaction sign off transactions among each other without involving miners at all 
  • After the channel closes, the final state is added on the main chain  

Some state channels deal with payments only. Celer’s state channel tracks all the programs that may occur between the parties, including payments. 

Why Are State Channels Important? 

To understand why state channels are useful, think of the blockchain. As an example, on the Bitcoin and Ethereum blockchains, users have to wait until a supermajority of nodes in the network vote for transactions to go through. Also, as more users interact with the network, this voting process takes longer. As you can see, this process is slow and unideal.

This is where state channels come in. Since transactions are taking place between two parties instead of passing through the mining verification process, they are simple, direct, and quick.

State channels also provide strong privacy. Blockchain transactions are available on a public ledger, and thus, anyone can see them. But state channel transactions are only known between the two transacting parties.

Celer network hopes to create a ‘state channel network,’ which is a network of individual state channels designed such that they can route state changes through each other. Via such a network, users may not have open channels with each other, but they can open a virtual channel between themselves.  

What is cRoute?

To understand the Celer network’s cRoute, let’s do a quick run-through of the problems with existing state channels, mainly the Lightning Network and the Raiden network. 

State channels depend on state routing, which determines the speed and volume of transactions on a state channel, which is why it needs to be designed efficiently.

The Lightning Network uses “Flare,” a type of Landmark Protocol, while the Raiden Network utilizes the A* tree search, a mechanism designed to look for the shortest routing path. 

Both these mechanisms are scrambling to find the “shortest route between two points.” While this mechanism helps put out a good throughput, it changes network topology (arrangement of the elements in a communication network) and, as such, interferes with the overall balance of the network. 

Distributed Balanced Routing 

Celer hopes to remedy this using the Distributed Balanced Routing (DBR). DBR provides for transparency and network balancing in the routing process. DBR is akin to a river flowing downhill. It doesn’t know its final destination. It just follows gravity. Here are the benefits of the DBR algorithm:

  • Provably optimal: It tracks the most optimal route for transfer requests
  • Channel balancing: Each state channel is built to maintain balanced transfers for the network’s topology
  • Complete decentralization: Its decentralized algorithm provides for each node to only need to communicate with its neighbors.
  • Failure-resistant: the DBR algorithm can detect and adapt to unresponsive nodes ultra-fast. If some nodes fail, the remaining nodes will pick the slack and still deliver the maximum possible throughput.
  • Privacy: Thanks to DBR’s multi-channels, transactions are accorded a high level of privacy without the need for additional privacy settings or tools. It can also integrate Tor-like routing to ensure anonymity.

cOS

coS is a framework that aims to help developers build decentralized applications (DApps) of a high level of abstraction. (Abstraction means creating a system such that the average person can use without the need to know the complex technology behind the scenes.)

Via cOS, developers will be able to create two categories of DApps:

  • Simple pay-per-use applications: These applications will allow users to receive small payments from the real world and stream them through the payment network.
  • Complex multi-party applications: These applications will improve the current smart contract models with new techniques such as metaprogramming and annotation processing.

cEconomy

cEconomy is the second most important value proposition of Celer. This cryptoeconomic model aims to ensure that the network’s ecosystem remains stable and functional at all times. It plans to achieve these trade-offs via these mechanisms:

Proof of Liquidity Commitment (PoLC), which is a virtual mining process tasked with acquiring liquidity for the off-chain ecosystem. The Celer Network has members known as “Network Liquidity Backers” who commit their liquidity (like ETH) to the Collateral Commitment for a certain time, after which are rewarded with CELR tokens as a reward. This is what maintains liquidity in the network.

Liquidity Backing Auction (LiBA), which helps off-chain service providers obtain liquidity through a crowdlending model. A lender’s priority status is determined based on the amount of solicited liquidity and the size of the stake in CELR.

State Guardian Network, a special side-chain that protects off-chain states when users are offline to ensure the availability of the network. To become state guardians, CELR token holders need to stake their CELR with the SGN, upon which they become eligible guardians.

What is CelerX? 

CelerX is a Celer app and the only layer-2 application available on Android and iOS. Through the app, users can: 

  1. Use Celer Pay to instantly money with zero costs
  2. Play a variety of games with zero or ‘millisecond’ latency and stand a chance to win prizes

Since its launch, CelerX has reached $1.4m+ in total prizes awarded, 11,000 players, and 300,000 matches from 88 countries. 

Funds deposited on Celer Pay are in your complete control at all times. CelerX uses the ERC-20 Game Token (GT) through which users can practice games like Solitaire Win, Fishjump, Diamond Break, Frog Jump, Fruit Punch, etc. in the app. 

The app provides competitions for approximately 80% of the world and 38 US states. As of February 25, 2020, users from these US states are not eligible for the games due to gaming restrictions in the states: Arizona, Arkansas, Connecticut, Delaware, Florida, Lousiana, Maryland, Montana, South Carolina, South Dakota, and Tennessee. Users from Maine and Indiana are prohibited from card games.  

Crypto-based games have proved to be a hit with the masses (cue Cryptokitties), and CelerX hopes to capitalize on this by providing a platform for skill-based gaming mobile-based e-sports. Through the app, users can buy cryptocurrencies through credit cards, Paypal, and ApplePay – a first not only in blockchain-based gaming but the mobile gaming industry itself.  

Tokenomics of Celer

The Celer token helps keep the network’s liquidity stable while also acting as a medium for payments and transaction fees.

These are the Celer token values as of February 25, 2020. The token is trading at $0.003660 at a market rank of #289. Its market cap is $13, 262, 362, and its 24-hour volume is 4, 825, 975, with a circulating supply of 3, 624, 044, 542. It has a total supply of 10 billion and a maximum supply of the same value. Its all-time high is $0.0302469 on March 25, 2019, while its all-time low was $0.003150 on January 24, 2020.

Closing Thoughts

Celer Network is not another run-of-the-mill crypto scalability project. It utilizes clever layer-2 solutions that put security and privacy at the forefront, always. Its CelerX app model is peerless, as is its cStack and cEconomy components. The project shows a lot of promise, and it will be interesting to see how it pans out in the future. 

Categories
Cryptocurrencies

A Comprehensive Guide To Siacoin 

Blockchain’s first case was Bitcoin – which hoped to solve the problem of double-spending and the centralization of finance. Since then, thousands of cryptos have mushroomed, each with a promise to solve a problem that we may have not even known existed before, but whose solution we truly need.

Blockchain’s first case was Bitcoin – which hoped to solve the problem of double-spending and the centralization of finance. Since then, thousands of cryptos have mushroomed, each with a promise to solve a problem that we may have not even known existed before, but whose solution we truly need.

Blockchain’s first case was Bitcoin – which hoped to solve the problem of double-spending and the centralization of finance. Since then, thousands of cryptos have mushroomed, each with a promise to solve a problem that we may have not even known existed before, but whose solution we truly need.

Not many people know they can rent that extra space in their hard drive and get paid, and not many know they can buy storage space from someone on the other side of the world, and very affordably for that matter.

This is what Sia promises to do – provide a decentralized, peer-to-peer marketplace that people can sell and buy cloud storage services. Simply put, if you have idle hard drive space, you can rent it via Sia, and if you need cloud storage space, you can purchase it at a fraction of the cost that you would have spent via a centralized platform.

This article breaks down everything you need to know about Sia, including what the platform is all about, the creative forces behind it, how it works, and how to grab Siacoins.

The Team behind Sia

Sia is a brainchild of David Vorick and Luke Champine of Nebuolus Inc, a Boston-based startup. Both developers are graduates of Rensselaer Polytechnic. The two first presented the idea at HackMIT 2013, where it received positive feedback.

The idea was simple – what if all the idle space in hard drives all over the world could be brought together in an affordable, decentralized cloud storage platform?

The Problem with Centralized Cloud Storage

Before we see why Sia is special, let’s see why the existing cloud storage model is fundamentally flawed:

Giving Over Control of Data

When companies hand over their data to third party companies, they also give over control over that data. Not only are privacy protocols beyond their control, but they may also accidentally share data they never meant to in the first place.

Vulnerability to Hacking

Centralized systems usually have a single point of failure and hence susceptible to hacking. A good illustration of this is the 2017 Equifax hack in which the data of more than 145 million Americans was stolen from the credit report service. Another is the Apple iCloud attack in 2014 that saw private images of famous people posted on sites like 4chan, Imgur and Reddit.

Misuse of User Data

Facebook’s Cambridge Analytica scandal illustrates best how third parties can mismanage their users’ data. Facebook’s design allowed the company to get its hands on more than 87 million users’ data, including public profile, city of residence, page likes, and even news feed, timeline and private messages. They then used this information to create psychographic profiles that were used by politicians to sway elections in several countries.

Bring Your Own Device

Bring Your Own Device (BYOD) is another problem with third-party cloud storage. This is the case when companies tell employees to bring their own devices for work. Companies do this because either they don’t have the resources to buy IT equipment or employee devices’ specs are more powerful than the companies’.  The problem is, BYOD poses certain security risks. For instance, when these devices get lost, it puts clients’ privacy at risk. And in the case of security breaches, it’s difficult to identify the point of failure amongst all the employee devices.

How Sia’s Storage Procedure Works

The Siacoin storage procedure features its peer-to-peer storage model, ‘file contract’ system, and ‘proof of storage.’

File Contracts

File contracts are Sia’s version of smart contracts. Through these contracts, renters (clients) and hosts (providers) can conduct business within the context of a predetermined and well-defined set of rules.  If two parties wish to work together, they draft a file contract. The file contract contains the term of storage agreement and is meant to ensure each party meets its obligations. As the contract is stored in a public ledger, the terms set therein are immutable (unalterable) and hence verifiable by both parties at any time.

  • The client pays a certain amount (‘allowance’) of Siacoins that will finance the storage and bandwidth for the contract period. A contract’s default length is 13 weeks. 
  • The allowance is set up within the wallet, after which the renter’s software instantly identifies 50 optimal hosts for them, based on their scoring.
  • The host takes up a fraction of s Siacoins and sets it as collateral. The higher the collateral, the higher the score during a host’s selection process.
  • The client plus the identified 50 hosts sign the file contract, upon which it is submitted to the blockchain.
  • 3.9% of the total funds of the contract is paid as commission to Siafund holders.

P2P Storage System

The Sia ecosystem comprises of two main components – the renters (clients) and hosts (providers). Renters pay hosts with Siacoins for storage space. They can also negotiate the storage fee with hosts directly.

Hosts play a huge and important role in the Sia ecosystem, and as such, it’s within their purview to:

  • Advertise and promote their storage resources
  • Reject a client’s request if they deem the data in question to be especially sensitive, ethically wrong, or illegal

And on their part, renters have the freedom to:

  • Protect their files by splitting them up and sharing them between two different providers – for an added layer of protection
  • Pay more than the stated fees to providers to receive special treatment such as faster upload speeds

Proof of Storage

Sia has a ‘proof of storage’ concept that’s meant to protect clients from bad actors. Before a host receives payment, they must present to the network proof within the time set in the file contract. If they fail to provide the proof of storage within that specified time, the payment goes to a ‘missed proof address’ until they present proof. Depending on the circumstances, the host can even be fined for negligence. And when they miss too many proofs of storage mandates, the contract may be terminated for good.

However, when a host successfully presents proof of storage, they are awarded payment, which is sent to a valid proof of address. But they have to meet certain ‘spend’ conditions, e.g., time locks and network signatures before they can access the funds. 

Tokenomics of Sia

As of Feb 25, 2020, Siacoin registered the following values. A price of $0. 002452, while placing at #58 in market rank. It had a market cap of $192, 546, 342, and a 24-hour volume of $4, 606, 191. Its total supply was 41, 817, 047, 634 SC, with an all-time high of $0.111708 on Jan 06, 2018, and an all-time low of 0.000011 on Dec 01, 2015.

Siacoin and Siafund

Sia’s platform operates on a dual-token system: Siacoin (SC) and Siafunds (SF). Siacoin functions as the utility token, while Siafunds are to help the development of the project without relying on external donations. Siacoin’s supply is not capped, and all the tokens must eventually be mined. In the beginning, miners got 300,000 coins Siacoins as block rewards, but this reward will decrease up to 30,000 coins.

On the other hand, there are 10,000 SF in existence, all pre-mined. The company behind Sia holds 8835 of these coins, while the rest have been distributed in a crowdfund to help fund the project.

Sia Coin Mining

Siacoin uses the proof of work consensus mechanism. This means they have miners mining Siacoins using specialized mining computers called ASICS (application-specific integrated circuit). The history of Siacoin mining has a bit of controversy.

In 2017, David Vorick, lead developer for Sia, announced that Nebulous would launch a company called Obelisk to manufacture ASICS specifically for mining Sia. Members of the community supported the ASIC project by pre-ordering and contributing millions of dollars.

At the same time, ASIC manufacturing behemoths Bitmain and Innosilicon were already in the process of developing Sia ASICS. Some in the Sia community did not want a future where miners monopolized Sia mining. As such, they demanded a hard fork to prevent this. But the hard fork proposition was also opposed by a significant chunk of the Sia community. Ultimately, the hard fork faction won as Sia’s core developers implemented a hard fork.

The hard fork was conducted on Oct 31. 2018. The goal was to lock out Bitmain miners and only allow Obelisk miners to support the network. Vorick stated that the hard fork was a result of the community’s distrust towards Bitmain, as well as Innosilicon’s dominance over Siacoin, which controlled up to 37.5% of Sia’s mining hash rate. 

A large section of the community was content with the results, but others, especially those who had invested in Innosilicon, dissented. This is the group that stuck with the old Sia chain, which they called SiaClassic.

Why Sia?

Sia offers several advantages over existing cloud storage services.

Privacy: All data that passes through Sia is encrypted, meaning you’re always in control over your data. This is unlike current cloud services where the host has access to any data that you commit to them.

Security: The encryption of data means it’s insured from the pitfalls of the traditional model, such as vulnerability to hacking. Also, the ability to split your data between multiple providers boosts its security.

Affordability: Sia’s storage services are way more pocket-friendly than the traditional model. As an example, storing one terabyte of data via Sia can cost you just $200, while the same amount will cost $2300 on Amazon’s cloud storage service.

Where to Buy and Store Siacoin

You can acquire SC by trading Bitcoin for it in several exchanges, including Binance, Bittrex, Kraken, Cointree, Coinswitch, Poloniex, Huobi, and so on.

You can also get SC via mining from Luxor or SiaMining.

The Sia team has customized two wallets for SC: Sia Daemon and Sia UI. Sia Daemon is offered on Github and can be used per a user’s preferred Command Line Interface (CLI). This wallet supports Mac, Linux, and Windows. Sia UI is for the less than tech-savvy and comes with more user-friendly features.

Final Thoughts

In a space full of unfulfilled promises, Siacoin stands out as a service that you can actually access today. It’s a win for everyone involved: hosts can earn from the extra space in their hard drive, while renters can buy space in a decentralized, highly-secure environment for very little cost. What’s there not to like?

 

Categories
Cryptocurrencies

Private, Public and Consortium Blockchains

Bitcoin brought with it blockchain technology – the technology that allows digital information to be distributed but not edited or copied. After it became a hit with Bitcoin, eager innovators from all over the world have made it their mission to replicate it in nearly every conceivable industry. From finance to healthcare to supply chains, industries are experimenting with blockchain to improve efficiency, transparency, and accountability in their systems.

Bitcoin brought with it blockchain technology – the technology that allows digital information to be distributed but not edited or copied. After it became a hit with Bitcoin, eager innovators from all over the world have made it their mission to replicate it in nearly every conceivable industry. From finance to healthcare to supply chains, industries are experimenting with blockchain to improve efficiency, transparency, and accountability in their systems.

Bitcoin brought with it blockchain technology – the technology that allows digital information to be distributed but not edited or copied. After it became a hit with Bitcoin, eager innovators from all over the world have made it their mission to replicate it in nearly every conceivable industry. From finance to healthcare to supply chains, industries are experimenting with blockchain to improve efficiency, transparency, and accountability in their systems.

What is Blockchain? 

A blockchain is a database whose entries cannot be deleted or edited but only distributed. It’s a time-stamped series of transactions that are immutable and whose data is managed by a network of computers.

Cryptocurrency, a form of digital money that prevents double-spending, is so far the dominant application of blockchain. Blockchain as a concept had been floated around the computer science space from as early as 1991, but only materialized 18 years later when Satoshi Nakamoto, the anonymous creator of Bitcoin, employed it as the underlying technology of Bitcoin. 

Now, as its appeal has increased in recent years, it has been borrowed for use in all kinds of digital information.

Today, there are three kinds of blockchains: private, public, and consortium chains. This article sets to exploring each of these. Before that, let’s point out three characteristics all three share. 

☑️ An append-only ledger – this means that on a blockchain, you can’t modify or alter what’s already recorded – you can only add to the last block. This procedure greatly reduces the chances of fraud.

☑️ A network of peers – all network participants (called nodes) hold a copy of the database. This setup promotes fairness and autonomy. 

☑️ A consensus mechanism – a blockchain network must have a mechanism through which nodes can agree upon the authenticity of a transaction. This feature promotes a democratic – everyone-has-a-say – process.

What is a Public Blockchain?

A public blockchain is an open-source blockchain. That means it’s open to the public. Anyone and everyone of every age, nationality, or social status is welcome to join the network, have a say, and take part in core activities. Public blockchains are also called ‘permissionless’ since you don’t need permission from anyone to interact with the protocol.

The idea behind public blockchains is self-governance and autonomy. No one dictates the rules, and anyone can join and leave as they wish. As well, all transactions that take place on a public blockchain are entirely open for anyone to see.

Public blockchains are ‘censorship-resistant’ in that they are run by users all over the world, making it hard for any authority or government to control or shut them down.

Also, public blockchains have a token that incentivizes various participants of the network to keep the network active.

The Good

Public blockchains are highly secure, courtesy of being run by computers from all over the world.

They ensure privacy for users in that you don’t leave your personally-identifying details on the chain, but rather transaction information like wallet number, time, and amount.

Transactions are peer-to-peer, meaning users are in complete control of their money with no one capable of freezing their funds

The Bad

Public blockchains like Bitcoin consume a lot of energy, which is expensive and bad for the environment

The majority of public blockchains are pseudonymous, meaning users do not have absolute and inviolable privacy or anonymity.

Some users of the network might have malicious intent, including hacking, stealing of tokens, or network clogging.

Public Blockchain Use Case

Bitcoin is the first-ever and the most well-known application of a public blockchain. 

Bitcoin transactions can be examined by anyone on the Blockchain Explorer. Other public blockchains are Ethereum, Litecoin, ZCash, Monero, Dash, and so on.

What is a Private Blockchain?

A private blockchain is one in which you need authentic and verified credentials to gain access. A private blockchain differs from a public one in that you need permission, depending on your position in the system’s hierarchy, to contribute and maintain the network. People at the top of the hierarchy or those with express access can also override processes as they deem necessary.

A private blockchain makes sense in a business context where managers want to improve efficiency but don’t want to put company data on the public blockchain. As well, a business has the right to amp up privacy restrictions any time they deem fit.

In a private blockchain, there’s the question of who enters entries, who can see updated transactions, who can begin a process, and so on.

The Good

Since only specific users can control the network, there’s no waiting times or periods of high demand which would slow down the network.

Entities that use private blockchains can keep sensitive data from the public while also realizing improved levels of efficiency.

Private blockchains do not have to provide any incentives to participants; neither do they consume massive amounts of energy. 

There is no possibility of downtimes arising from a spike in demand.

The Bad

Without support from computer users all over the world, a private blockchain is prone to stunted growth. It can also be slow to scale up and meet changing customer needs. 

Since they are centralized, public blockchains are susceptible to human error, manipulation, abuse, and other unfair dealings.

Use Case of a Private Blockchain

The best use case of a private blockchain is Hyperledger Fabric, a permissioned blockchain that businesses can deploy on their platform. The blockchain is also available in a plug and play mode, allowing businesses to set it up anytime and plug off when they don’t need to use it.

Walmart is a well-known user of Hyperledger Fabric. The retail giant can now trace the origin of more than 25 food products, from farm to store, to ensure quality levels and food safety.

What is a Consortium Blockchain?

The consortium blockchain is a type of blockchain that combines elements of both public and private blockchains. This is the distinction between a consortium blockchain and either of the two other types:  in a public blockchain, anyone can contribute to the network by inputting entries, validating blocks, etc. In a private blockchain, only a few entities have access to the chain and have the authority to initiate processes, enter entries, and so on. On a consortium blockchain, it’s a handful of equally powerful participants that can access the chain.

After that distinction, the rules of the system are not cast in stone. Some selected individuals may be the only ones who can view the chain, or it can be everyone in the consortium. As long as decisions are arrived at by consensus, they can be rolled out to the satisfaction of all parties.

Consortium blockchains rely significantly on the integrity of the validators. Provided a certain threshold of the validators can act with integrity, the network will work without issue.

Consortium blockchains make sense in the context where multiple organizations operate in the same industry and see it fit to collaborate on certain aspects of their business. This way, they can save on costs and function better individually and collectively. An organization would be motivated to join such a consortium courtesy of information and insights into the industry that they’d gain from other industry players. Sometimes the organizations involved can be termed “frenemies” since they are working together but also competing against each other.

Use Cases of Consortium Blockchains

There are currently many consortium blockchains that exist all over the world. Let’s briefly look at a few below:

☑️BankChain, a platform for banks whose goal is to explore, build, and implement blockchain software. Members of the BankChain community include Deutsche Bank, Bank of Baroda, Lulu Exchange, Kotak Bank, etc. 

☑️B3i, a community of insurers and reinsurers that attempts to improve industry efficiency through blockchain. Members include Liberty Mutual, Swiss Re, SBI Group, Tokio Marine, Allianz, and so on.

☑️Enterprise Ethereum Alliance (EEA), a consortium that aims to promote Enterprise Ethereum, an organization that delivers both public and private Ethereum blockchain for businesses.

Final Words

Blockchain has evolved a lot from the days when it was associated with Bitcoin only. It’s definitely exciting to see it as the new and hot technology that industries of all types are scrambling to get a piece of. And understandably so, because it embodies features that are a first, and which have the potential to revolutionize not just how we do business but also society itself. 

Companies need to choose what type of blockchain they want to get involved with, depending on their end goal and overall objective. Meanwhile, blockchain enthusiasts will be watching for new developments in this thrilling space.

Categories
Cryptocurrencies

Decred Review: Is It the Ideal Cryptocurrency?

Cryptocurrency represents freedom of finance. Decentralized, censorship-resistant, and peer-to-peer are some of the words that we ascribe to it. But whether the vast majority of cryptocurrencies meet these criteria is a grey area.

Cryptocurrency represents freedom of finance. Decentralized, censorship-resistant, and peer-to-peer are some of the words that we ascribe to it. But whether the vast majority of cryptocurrencies meet these criteria is a grey area.

Cryptocurrency represents freedom of finance. Decentralized, censorship-resistant, and peer-to-peer are some of the words that we ascribe to it. But whether the vast majority of cryptocurrencies meet these criteria is a grey area.

Decred is a cryptocurrency launched in February 2016 that attempts to live up to these ideals. Its team of founding developers comprises of former developers of the notable btcsuite, a version of Bitcoin programmed in the Go language.

In this article, we’ll cover the exciting highlights of the Decred project and leave you to decide whether it’s the optimal currency or not. 

The Principles of Decred

Decred endeavors to live by these principles:

☑️ Free and Open Software – All software developed as part of Decred shall be free and open software

☑️ Free Speech and Consideration – Every member has the right to communicate opinions and ideas without fear of censorship, as long as it’s based on fact and reason. 

☑️ Multi-Stakeholder Inclusivity – A diverse set of views and users shall be represented and encouraged.

☑️ Incremental Privacy and Security – Privacy and security are priorities, and they shall be treated as such, and shall be incrementally implemented and on a continuing basis, both proactively and in direct response to attacks.

☑️ Fixed Finite Supply – Issuance of coins is finite, and the total issuance shall not exceed 20, 999,999.99800912 DCR, with a block subsidy that adjusts every 21.33 days by a reducing factor of 100/101.

☑️ Universal Fungibility – Universal fungibility is central to Decred as a store of value, and any attacks against it shall be met with countermeasures.

Breaking down Decred

Decred has a maximum supply of 21 million. The project never held an ICO, but an airdrop of 282.64 DCR was awarded to 2972 selected participants during the launch. Its all-time high was $99.74 on April 25, 2018, and its all-time low at $0. 394796 on December 28, 2016.

As of February 21 21, 2020, the price of Decred is $20.53 at a market rank of #37. Its 24-hour volume is $28, 260, 170, with a circulating supply of 10, 786, 831.

Each time DCR is mined, 60% is awarded to the PoW miner, 30% to PoS voters, and 10% held by Decred for future development.

How to Get Involved With Decred

Decred designates three ways through which you can interact with the platform:

The Wallet – Through the wallet, you can send and receive funds as well as take part in PoS voting.

Proof-of-Work Mining – You can use your computing power to validate transactions on the network and generate new tokens.

Proof-of-Stake Mining – Through ownership OF Decred tokens, you can vote on network development issues and validate transactions. 

All you need to send or receive Decred tokens is an address that you can easily generate from any Decred wallet. Once you own Decred, you’re eligible to join a staking pool and participate in PoS voting and earn rewards while at it.

What Problems Does Decred Intend to Solve?

Decred developers are huge blockchain and Bitcoin fans. However, they identified problems with how Bitcoin operates. As Bitcoin’s popularity has surged, the decision-making process seems to get more centralized by the day. This is evidenced by, for instance, the concentrated power in the hands of powerful mining companies.

In addition, almost any major upgrades to the Bitcoin software have to take place via a hard fork. This is what happened in 2017 when one section of the community proposed the SegWit2x hard fork on the chain. The two opposing sides got involved in hostile debates, peppered with name-calling and threats. The hard fork was finally called off, but not before leaving sharp divides in the Bitcoin community.

According to Decred, such divisions and the power that a particular section of the community might have over the cryptocurrency is counterproductive to the ideals, spirit, and the world of blockchain and cryptocurrency.

We’ve all seen what happens when two opposing sides do not arrive at a consensus. Factions can decide at any time to create a hard fork off the open-source Bitcoin code. Cryptocurrencies like Bitcoin Cash, Bitcoin Gold, Bitcoin Satoshi’s Vision, and Bitcoin Diamond are all offshoots of the original Bitcoin blockchain.

The Problem with Hard Forks

Forking is never the ideal outcome for cryptocurrency. Let’s see below why:

Repeated hard forks are bad for investor sentiment. After the Bitcoin Cash hard fork, Bitcoin prices took a tumble.

Hard forks fracture the Bitcoin community. The flared up tensions, and hard-line stances do no good for the community and the cryptocurrency sphere as a whole.

New hard forks are susceptible to attacks. So far, the biggest public blockchain to succumb to a 51% attack is, you guessed it, a hard fork. This blockchain is Bitcoin gold, and the attack happened in May 2018. The attacker made away with roughly 388,000 BTG worth $17.8 million then.

Hard forking undercuts the economic aspect of cryptocurrencies. For instance, the Bitcoin hard forks are confusing to users and undermine Bitcoin’s principle of a capped supply.

Decred presents a vision and cryptocurrency that’s free of hard forks, especially ones that fracture the community. While a hard fork is possible on Decred, its voting protocol is designed so that users can democratically vote on changes before activation.

Let’s look at the various mechanisms that Decred employ that will help it realize fair, smooth, and efficient governance.

Decred’s Hybrid PoS and PoW System

Decred’s voting system utilizes a hybrid of the two best-known consensus mechanisms: proof of work and proof of stake. 

These are the basics of how these two interact:

  • Miners mine for a block using PoW
  • Five token holders are randomly chosen to verify the block
  • If three of these validators confirm the validity of the block, it is recorded on the blockchain
  • 60% of the block rewards go to the miners, 30% to the validators, and 10% to the Decred project for future development.

With PoS, anyone who holds Decred tokens can participate in the staking system in this way:

  • DCR holders can purchase tickets with their tokens. The tickets give them pass to be part of the system
  • Only 20 tickets can go to any one block at any time. You may have to wait to get mined, but if you wish to get mined faster, you’ll need to pay some fees.
  • Once mined, your ticket is “immature” and will be held outside the random draw pool until 256 blocks have been mined, which is in approximately 20 hours.
  • After your ticket enters the draw pool, you will have to hold out for your chance to be chosen as one of the five validators that are randomly picked to verify the block
  • Your ticket has a 50% chance of being selected within 28 days and a 99.5% chance of being selected before it expires (after around four months).
  • Once your ticket’s chosen, you’ll help validate a block and be rewarded with a price for the ticket and also a staking reward.

The Decred system is also fair in that validators can participate in staking pools. As such, if a validator can’t make it to be part of the validation process, they can simply have their pool validate a block on their behalf.  

So far, you can see that Decred gives the power of participation to both users and miners. Unlike the Bitcoin system, miners do not possess disproportionate power over the network. If, for instance, a miner decides to mine a malicious block i.e., a transaction unrelated to the chain, validators can simply decline to verify the block. As you know already, PoW takes a lot of computational power, and for that, miners have very little incentive to do something that won’t pass with the validators.

How Safe Is the PoW/PoS Hybrid?

Just HOW safe is the PoW/PoS hybrid mechanism? A crypto analyst named Zubair Zia made it his mission to test the security of Decred’s chain vs. Bitcoin’s or a PoW/PoS model vs. a pure PoW model. He wanted to see which chain would more easily succumb to a 51% attack.

He used BITMAIN’s Antminer s9i’s, which has a rate of 14 tera-hashes per second. His calculations demonstrated that it was 22 times as expensive to hit Decred as compared to Bitcoin as of June 2, 2018.

In short, the hybrid system is 22 times more secure than a purely PoW system.

Lightning Network for Transactions

Decred has also implemented the Lightning Network.  The Lightning Network (LN) is an off-chain technology that has been explored by multiple cryptocurrencies to improve scalability. LN helps to settle payments outside of the blockchain so as to reduce traffic and backlog on the main chain.

LN works by having two users set up a payment channel on the network and depositing an equal amount of funds. Any time one user wishes to transact, they simply send a promissory note to the other user indicating a change of the total sum in the shared channel.

Since transactions happen off the chain, users also pay fewer fees since there’s no queue. Transactions are also instant, and there’s even added privacy thanks to a Tor-like routing algorithm for transactions. 

Decred’s Politeia

Thanks to a decision-making system called Politeia, Decred has managed to achieve decentralization more than any other existing cryptocurrency project.

Politeia is an ancient Greek word employed in Greek political writings, especially that of Plato and Aristotle. The term has many senses, from meaning “rights of citizens” to “form of government.”

Decred’s Politeia is designed to be the ultimate form of self-governance and community autonomy over a cryptocurrency project. Users can vote to accept or reject proposals, including budgets, software upgrades, marketing plans, constitutional amendments, and so on. When launching the system, project lead Jake Yocom-Piatt noted: “The direction of Decred now lies with the collective intelligence and creativity of its stakeholders.

We look forward to the exciting projects our community will propose.”

Where to Buy and Store DCR

You can purchase DCR from several exchanges, including Binance, Bittrex, Coinswitch, Changelly, Kucoin, Huobi, and so on by trading Bitcoin for it.

As for storage, the best wallet so far is the Decrediton wallet that’s available for Mac, Linux, Windows, and so on.

Great third party options also include Exodus, Coinomi, Atomic, Ledger Nano, etc.

Final Words

Decred has undoubtedly broken the mold, especially with its first of the kind governance system. Even though not as well-known as of yet, it’s one that has modeled cryptocurrency ideals better than perhaps the whole cryptocurrency pool right now.

The team behind it is also very well-regarded in the blockchain and crypto space, which is just the icing on the cake. With such a sound philosophy and a fantastic team, Decred is poised for success. But this will depend on the community. One can only hope it will mobilize for better and more exciting features for the platform before newer projects arrive and overtake the platform. 

Categories
Crypto Daily Topic Cryptocurrencies

What is Bumo Blockchain?

Before we say a single thing about Bumo blockchain, we need to talk about blockchain. Blockchain is a publicly distributed ledger that records transactions between parties permanently, transparently, and in a peer-to-peer manner.  

Before we say a single thing about Bumo blockchain, we need to talk about blockchain. Blockchain is a publicly distributed ledger that records transactions between parties permanently, transparently, and in a peer-to-peer manner.  

Before we say a single thing about Bumo blockchain, we need to talk about blockchain. Blockchain is a publicly distributed ledger that records transactions between parties permanently, transparently, and in a peer-to-peer manner.  

The concept of blockchain existed in the developer community for years. Still, it only came to life in 2008 when a person/people under the pseudonym Satoshi Nakamoto created a blockchain to serve as the underlying technology under the world’s first cryptocurrency – Bitcoin.

Since then, numerous cryptocurrencies have been created by developers all over the world – either running on their own blockchains or other cryptocurrencies’ blockchains.  The technology has also broken out of the cryptocurrency application and has been adopted in other industries – from finance to healthcare to supply chain and so on. These applications represent the private, enterprise side, of blockchain.

What is Bumo?

Bumo is a next-generation enterprise-grade public blockchain that hopes to host what it calls a ‘ubiquitous’ value transfer, smart contracts, and decentralized applications platform. The Bumo project is still in beta, i.e., still in development. 

Let’s look at some of Bumo’s unique selling points right off the park:

  • Two or more users can create an account together, thanks to what the platform calls “individual account weightage”
  • A Merkle-Patricia Tree to help store data efficiently
  • A “trailer” system that helps segregate on-chain and off-chain data
  • An ‘Orbit’ infrastructure helping support Bumo’s 2-layer multiform architecture
  • A 2-layer multi-chain consensus structure that’ll enable up to 10,000 transactions per second
  • A “Canal” system to facilitate interoperability
  • A robust and friendly toolkit for developers to create smart contracts
  • The ability for developers to build apps that aren’t necessarily backed by a smart contract

In this guide, we’ll look at these features in greater detail and see what Bumo hopes to do differently for the blockchain ecosystem. To do that, we first need to talk about the inherent problems with blockchain right now.  

Problems with the Blockchain

Scalability

The first and second-generation blockchain’s scalability issue refers to their inability to handle high-volume transactions within a short period of time – hence they can’t be used to serve millions of people all over the world.

One reason for this is the mining-based verification mechanism that requires miners to verify transactions and then record the verified transactions in the blockchain. This creates a backlog of transactions and a slow, overloaded network since a miner can only mine a certain number of transactions at any time.

The other reason is the 1MB sized blocks on the Bitcoin blockchain, which severely limits how much data any one block can hold. This means your transactions have to wait in a queue for roughly 10 minutes. On the Ethereum blockchain, there are no block size limits, but transactions may take an average of 15 seconds before verification. 

Lack of Interoperability

Interoperability, or lack of it, is another issue with existing blockchains. Existing blockchains e.g., Bitcoin and Ethereum, are not built to be able to interact with each other. This is why crypto exchanges have the power that they do since they provide a much-needed portal on which different cryptos can interact with each other.

But exchanges are centralized entities, which goes against the decentralization principle of cryptocurrencies. Besides, centralization makes cryptocurrencies vulnerable to hacking and blackouts, which can stall services.

The lack of interoperability also means mainstream adoption of the blockchain is impossible. This is because, for blockchain technology to be integrated into the mainstream, it needs to be able to interact with existing systems.

BUMO is a next-generation blockchain that’s going to be catering to businesses. It comprises of two-layer chains that will help streamline transactions on the blockchain. The Bumo system will also be interoperable with both heterogeneous and homogeneous blockchain.  

The Team behind Bumo

Bumo is a vision of four core people: Steven Li, Steven Guo, John Zhao, and Yuliang Zheng. This team has between them a wealth of experience in Physics, blockchain, cryptography, and hashing technology.

Core Features of Bumo

Let’s dive deeper into the core features the Bumo blockchain that makes it stand out: 

A Multisig account

A multisig (multi-signature) is an account owned and controlled by more than one party. The Bumo blockchain uses something known as ‘account weightage’ to give more power of access to some signature holders over others. For example, if three people own a business and they have an account on the Bumo blockchain, the CEO’s approval, for instance, will count more than the other two’s.  This is an approach that the Bumo team hopes will appeal to big companies.

The Merkle Patricia Trie (MPT)

The Merkle Patricia Trie is a tool that combines the technologies of Merkle Tree and Patricia (Practical Algorithm to Retrieve Information Coded in Alphanumeric) Tree. This combination makes it easier to find particular transactions by reducing the time that would be taken to ascertain if that transaction belongs to a particular block or not.

Trailer System for Off-Chain and On-Chain Data

Depending on the characteristics of the data, the Bumo blockchain will differentiate data into off-chain and on-chain data, providing a streamlined system for handling heavy and complex data. This differentiation will help reduce the burden on the blockchain and save on hardware costs because the node network will experience less strain.

Interoperability Feature of the Bumo Blockchain

The Bumo blockchain has the Canal system, which is two-layered – with main chains and cross chains. The main chains comprise collection and validation nodes. The validation nodes provide “high-level” consensus for transactions on the cross-chain.

Cross chains are akin to the routers in a traditional network system. They route data from various blockchains towards the target blockchain. 

BUMO and Smart Contracts

BUMO hopes to be the best destination for smart contracts. The platform will feature these properties which are specifically geared to help it achieve this purpose:

i) Turing complete, or ‘computationally universal,’ which means a contract can solve any problem with the right tools

ii) Fast deployment 

iii) Flexible calls

iv) Reliable execution of smart contracts

v) The Bumo platform features a virtual machine called the BuVM (Bumo Virtual Machine). BuVM has the following properties to enable what Bumo calls “Eco-Friendly Smart Contracts.”

  • More advanced smart contract performance
  • Increased security for smart contracts
  • Multi-language support for smart contracts
  • Developer-friendly tools and environment

Also, the Bumo platform will provide a unique space for app developers, thanks to the following features:

  • Native application programming interface tools
  • WebSocket-like features
  • Ability to create an app or tokenize assets without the need for a smart contract. This is what Bumo calls “Account-based Tokenization Protocol,” in which users will be able to issue tokens by the mere virtue of having an account on the Bumo blockchain.

Benefits of Bumo

☑️The ability to tokenize assets quickly, safely and reliably

☑️A friendly environment for developers to create decentralized applications

☑️The ability to handle up to 10,000 transactions per second

☑️Reduce the costs of operation, maintenance, and exchange of data in the blockchain

☑️It will allow the connection of Internet of Things devices that will create value for thousands of people

☑️It is user-friendly

☑️People can exchange smart contract values faster and safely

☑️It promotes the free flow of digital assets

Final Thoughts

The Bumo blockchain is poised to reinvent several aspects of blockchain and stir the crypto space for the better. If Bumo succeeds, it’s very likely the blockchain world will bid goodbye problems like scalability issues, lack of interoperability, and the need to be well-versed in programing language so as to create applications. Will the Bumo team deliver, or is it another overhyped blockchain project? As with many things in blockchain tech, only time will tell.