Category: Crypto

crypto subjects

Categories
Crypto Videos

Forex Expiry Options Review 12-06- 2020! Making Forex Easy!

https://youtu.be/_8fby-JH1bI

https://youtu.be/_8fby-JH1bI

 

FX Options Market Combined Volume Expiries. A weekly retrospective review for the financial week ending: 12, 06, 2020

Hello everybody, and thank you for joining us for the daily FX Options Market Combined Volume Expiries review for the trading week ending on Friday, 12th June 2020. Each week we will bring you a video taking a look back at the previous week’s FX option expiries and how they may have attributed to price action leading up to the maturities which happen at 10 AM Eastern Time, USA.

If it is your first time with us, the FX currency options market runs in tandem with the spot FX market, but where traders typically place Call and Put trades on the future value of a currency exchange rate and these futures contracts typically run from 1 day to weeks, or even months.

Each morning, from the FA website, our analyst, Kevin O’Sullivan, will bring you details of the notable FX Options Market Combined Volume Expiries, where they have an accumulative value of a minimum of $100M + and where quite often these institutional size expiries can act as a magnet for price action in the Spot FX arena leading up to the New York 10 AM cut, as the big institutional players hedge their positions accordingly.

Kevin also plots the expiration levels on to the relevant charts at the various expiry exchange rates and colour codes them in red, which would have a high degree of being reached, or orange which is still possible and where these are said to be in-play. He also labels other maturities in blue and where he deems it unlikely price action will be reached by 10 AM New York, and thus they should be considered ‘out of play.’ Kevin also adds some technical analysis to try and establish the likelihood of the option maturities being reached that day. These are known as strikes.
Please bear in mind that Kevin will not have factored in upcoming economic data releases, or policymaker speeches and that technical analysis may change in the hours leading up to the cut.
So let’s look at a few of last weeks option maturities to see if they affected price action.
Firstly, there were no notable options for Monday, 8th June.

So here is the early morning analysis for Tuesday as provided by Kevin on the USDJPY pair where there was an option maturing at 107.85 in 390M US Dollars.
I’ll quote you the text as provided by Kevin: USDJPY has found support at the level of the option maturity. However, the bear move was strong. Expect more downward pressure. The option expiry remains in-play.

 

Now, let’s roll on a few hours and to the candle, which closed at the 10 AM cut. The exchange rate at this time was 107.71. Just 14 pips below the strike. So we saw that the support held out, but the bears finally got their way and pushed through the support area. Prior to this, the 107.85 maturity had been acting as a magnet for price action.

Here is the analysis for the Euro USD pair, also on Tuesday, with a large maturity at 1.1300 for €802 M. Kevin mentioned that price action was in a sideways action and that at the time of writing it was fading and retesting the downside, but that it was oversold on the one hour chart and that there were important data out in the Eurozone area.


Now let’s fast forward a few hours. We can see an arrow above the candle, which took us up to 10 AM in New York cut. Subsequent to this price action pushed to a low of 1.1240, which was suggested by Kevin before rebounding. Price action was around the 1.1300 maturity one hour before the cut. However, momentum simply carried the pair up to the high of 1.1362. Traders who purchased a premium option for a Put would have been in the money as the price was above the maturity at the time of the cut.


On Wednesday we had two expiries on the Euro Usd pair, and Kevin’s analysis was based on the sideways price action of the pair on the one hour chart and also the fact that it needed to break above the resistance line and form a candle above it for a continuation up to the 1.1390 cut to be possible.


A few hours later, and this was the picture. Price did form a candle above the resistance line and moved to within two pips of the maturity, before falling lower.

Here, we can see that the price action at the maturity was 1.1366, just 24 pips away.


Let’s move forward to Thursday. Here we have the EURGBP pair, which was trading at 0.8959 at the time of the analysis where Kevin reposted the bull run was strong.

The pair continued to rally during the European session and hit 0.8990at the 10 AM Cut, just five pips away from the maturity.

 


On Friday the 12th, We had three option expiries for the EURO Usd pair.

 


The exchange rate at 10 AM New York was 1.1302, just eight pips below the 1.1310 option
expiration Kevin labeled in Red.


in fact price action remained elevated until the cut at which time the pair softened to a low of 1.1332


Lets now take a look at USD Japanese Yen; We have an option expiration at 107.35
Kevin suggested a dip in price action before a retracement to the maturity in his analysis.


There was indeed a slight pullback and then a continuation higher.


and here, we can see the exchange rate at maturity was 107.35, which was an official strike.

Please remember, Kevin’s technical analysis is based on exchange rates, which may be several hours earlier in the day and may not reflect price action at the time of the maturities.
We suggest you get into the habit of visiting the FA website each morning just after 8 AM BST and take the levels and plot them onto your own trading charts and incorporate the information into your own trading methodology in order to use the information to your advantage.
Remember, the higher the amount, the larger the gravitational pull towards the exchange rate maturity at 10:00 AM Eastern time.
For a detailed explanation of FX options and how they affect price action in the spot forex market, please follow the link to our educational video.

Categories
Crypto Videos

Vitalik Buterin Speaks Out About Enormous ETH Fees!

https://youtu.be/VGJfC3b8f5I

https://youtu.be/VGJfC3b8f5I

Vitalik Buterin Speaks About Enormous ETH Transaction Fees

Multiple transactions that recently incurred millions in transaction fees on the Etheruem network, might be blackmail, says Vitalik Buterin, the creator of Ethereum.
Buterin posted a tweet saying that “The million-dollar transaction fees *may* actually be blackmail,” on June 12.


Buterin’s Theory

Vitalik Buterin proposed his theory on the situation regarding the transaction fees, saying that the hackers captured partial access to the exchange key, meaning that they can’t withdraw the funds, but that they can send a no-effect transaction with any gas-price they want. In turn, they threatened to ‘burn’ all funds via transaction fees unless compensated.
Multiple transactions have incurred extremely high network fees over the past few days. The transactions seemed absurd, as $130 worth of Ethereum was sent with a $2.6 million worth in transaction fees. Another transfer surfaced, transferring $86,000 in Ethereum, but having the exact same fee.

Alternative Theory

Buterin posted a second tweet, where he mentioned a possible alternative explanation that isn’t blackmail. He said that “Similar situations could possibly happen in ‘scorched earth’ games, such as ‘Moeser-Eyal-Sirer’ vaults.” In the same post, he tagged AVA Labs CEO Emin Gün Sirer as well as Technion assistant professor Ittay Eyal.

Categories
Cryptocurrencies

What is Streamr (DATA): Everything You Need to Know

The concept of real-time data is becoming huge. In the very near future, such data will become a hot commodity. Already, massive volumes of real-time data are being generated across industries and supply chains. And this is in a time when the Internet of Things (IoT) is catching up, and we have connected devices everywhere. 

The concept of real-time data is becoming huge. In the very near future, such data will become a hot commodity. Already, massive volumes of real-time data are being generated across industries and supply chains. And this is in a time when the Internet of Things (IoT) is catching up, and we have connected devices everywhere. 

The concept of real-time data is becoming huge. In the very near future, such data will become a hot commodity. Already, massive volumes of real-time data are being generated across industries and supply chains. And this is in a time when the Internet of Things (IoT) is catching up, and we have connected devices everywhere. 

This data is valuable. It can be harnessed to optimize business processes, track assets with improved accuracy, target customers for better results, and tap into an endless possibility of new business models. 

However, there is a bottleneck preventing this. Currently, data storage and distribution is a centralized affair, which means a concentration of power in a few hands, lack of innovation, and a single point of failure. And while some projects such as IPFS, Swarm, and BigChainDB are providing decentralized storage services, they fall short when it comes to high-volume, real-time data. 

Streamr is a blockchain-based project that aims to provide the real-time data missing link. It hopes to achieve this through a global and peer-to-peer network and an incentivization mechanism that will “keep the data flowing.” 

In this article, we look at the Streamr project and its native token, DATA coin. 

What is Streamr?

Streamr is an off-chain network built on Ethereum blockchain that employs smart contracts to allow individuals, companies, and machines to trade and monetize data. The Streamr platform will create a marketplace that enables anyone to tokenize data on a decentralized, peer-to-peer network.

This marketplace could potentially offer a lot of data to a wide array of uses. Decentralized application (DApps) developers can obtain data for running their apps from Streamr’s data streams. Internet of things (IoT) machines can swap data amongst each other from different sides of the world. Or,  a person can input their health/statistics metrics into their workout app, and scientists/researchers could use this data in their study. And on and on. The possibilities are endless. 

In Streamr’s words: “Streamr is a decentralized network for scalable, low-latency, untamperable data delivery, and persistence, operated by the DATAcoin token. Anyone – or anything – can publish new data to data streams,  and others can subscribe to these streams to power DApps, smart contracts, microservices, and intelligent data pipelines.” 

How Does Streamr Work? 

The Streamr network has three groups of people: publishers, consumers, and brokers (broker nodes).  

Publishers submit data to Streamr’s data streams – a process called an ‘event.’ Some of the time, data is free, while at others, consumers must purchase it using the network’s native token DATAcoin. For their part, brokers publish events, manage storage, manage communications between nodes, subscribe to data streams, and so on. 

Streamr uses a scaling technology known as sharding. (Sharding is a database partitioning technique that enables a blockchain to scale, allowing for the processing of more transactions). Due to this, a node on the network is not responsible for all the traffic. Instead, each node is responsible for its partition or share of the traffic. Nodes are paid in DATACoin tokens for distributing data to consumers.

The network also utilizes checksums in a view to maintaining honesty in the network. A broker node has to present checksums of their work for peer review by other nodes. The white paper states that “If a node reports deviant checksums, none at all, or the checksums are not coherent, no reward is obtained and offending nodes become less likely to be assigned responsibility for a partition in the future.”

Data transmission is facilitated by smart contracts, which are responsible for holding information and maintaining the registry of data streams, allocating responsibility to broker nodes, and okaying contracts for data buying and selling. 

Streamr’s Technology Stack

Streamr’s real-time data conduit is powered by three pieces of technology: 

  • The Stream Editor – which features a usability layer and a set of tools that facilitate the quick development of data-driven apps
  • Steamr Engine – an off-chain event processing, analysis, and refining engine 
  • Streamr Data Market – a hub for shared datastreams where anyone can contribute, subscribe, or purchase data.
  • Streamr  Network – the data transportation layer that supports events, holds stream meta-data, handle messaging, integrity checking, and data transmission.

Smart Contracts on Streamr

Streamr utilizes smart contracts to achieve and maintain integrity in the network. The Streamr white paper says: “A number of Ethereum smart contracts support the operation of the Streamr Network and the Data Market. The stream network uses smart contracts for incentivization, coordination, permissioning, and integrity checking. The Data Market builds upon features provided by the Network for data licensing and monetization. DATAcoin, an ERC20 token, is used by both layers for incentivization, as a reputation metric and as the means of payment.”

The Streamr Team

The Streamr team is led by Henri Phikala, Risto Karjalainen, Nikke Nylund, and Michael Malka. Phikala is a software engineer, entrepreneur, an algorithmic trader. He has designed the streamer cloud analytics platform.

Karjalainen is a data and finance expert with a Ph.D. from the Wharton School of Business. He’s a quantitative analyst with years of experience in systematic trading and asset management. 

Nikke Nylund has a Bachelor of Science in Finance and Entrepreneurship from the Helsinki School of Economics. He has founded or invested in several successful ICT and tech companies and has years of experience as an algorithmic trading strategist. 

Michael Malka is an entrepreneur and tech enthusiast with 20 years of software development experience working in startups to banks to telecommunications. He has a Master’s Degree in Computer Science from the University of Helsinki. 

The DATA Token 

Streamr’s native token is used to compensate data publishers, and consumers pay for data via the token. Here is a more detailed breakdown of the token’s functions. 

  • Incentivizing nodes to participate and a peer-to-peer network by lending their time, power, computing and bandwidth resources
  • Incentivizing data producers to contribute the data and helping the network grow for everyone’s benefit
  • Serving as the basis for karma – the Streamr community’s reputation metric

DATAcoin operates atop the Ethereum blockchain. Thus, Ethereum-based smart contracts maintain tokens balances and oversee trustless and secure transactions. As an ERC20 token, DATA coin is interoperable with a wide range of wallets as well as tokens.

Streamr (DATA) Economics

As of June 08, 2020, DATA coin is trading at $.0.061719, while ranking at #115. It has a market cap of $41, 927, 535, a 24-hour volume of $574, 230, a circulating supply of 679, 327, 435, a total supply of 987, 154, 514. DATA has an all-time high of  $0.374587 (January 07, 2018) and an all-time low of $0.004854 (March 13 2020). 

Where to Buy and Store Streamr

DATA is sold/exchanged in a variety of exchanges such as Ethfinex,  Binance, HitBTC, Gate.io, EtherDelta, HitBit, and eToro. You can exchange several cryptos for DATA, such as BTC, ETH, or USDT. 

Being an ERC20 token, DATA can be held in any ERC20/Ethereum compatible wallet. Popular options include MyEtherWallet, Guarda Ledger, Trezor, MetaMask Parity, InWe Wallet, Infinito Wallet, Trust Wallet, and others. 

Final Words

Streamr is taking the idea of decentralized data and elevating it to a higher, more timely level. The world’s economy is currently in a megatrend motion towards real-time data, and Streamr is preparing to meet this need in a global, peer-to-peer, and blockchain-backed system. 

Streamr’s decision to operate on top of Ethereum’s blockchain instead of building its own from scratch blockchain affords more time and concentration to research and development of the concept, meaning it can achieve its goals faster. If the project catches on, we could see a real-time, decentralized data model that could forever change the way we interact with data. The project is one to keep an eye on. 

Categories
Cryptocurrencies

What is Horizen (ZEN) All About?

The development of the internet was a turning point for humanity. Thanks to the internet, we’re in what’s called the ‘information age’ – where information is quickly and widely disseminated to all corners of the globe. But while this is positive, it also means the privacy of persons is not a 100% guarantee. This is especially true with governments that keep their citizens on watch – for one reason or another. 

The development of the internet was a turning point for humanity. Thanks to the internet, we’re in what’s called the ‘information age’ – where information is quickly and widely disseminated to all corners of the globe. But while this is positive, it also means the privacy of persons is not a 100% guarantee. This is especially true with governments that keep their citizens on watch – for one reason or another. 

The development of the internet was a turning point for humanity. Thanks to the internet, we’re in what’s called the ‘information age’ – where information is quickly and widely disseminated to all corners of the globe. But while this is positive, it also means the privacy of persons is not a 100% guarantee. This is especially true with governments that keep their citizens on watch – for one reason or another. 

There’s also the problem of millions of people lacking rights to property, trapping them in cycles of poverty. 

Blockchain has been touted as a technology that can solve a myriad of today’s problems, thanks to its ground-breaking features of decentralization, immutability, and state-of-the-art security. 

Horizen is a project that seeks to solve the above problems with blockchain-powered solutions.  This piece is an in-depth look at the exciting ways it proposes to do this. We’ll also share with you where you can purchase the ZEN token. 

What is Horizen? 

Zen is the native token for the Horizen blockchain ecosystem. Horizen is an end-to-end, blockchain-based, and zero-knowledge platform that allows users to send, exchange and release communications, data, and value in a safe, private, and peer-to-peer manner.

Horizen seeks to be a blockchain destination for private messaging, confidential publication of communications, and a decentralized property management platform. The Zen team believes privacy, owning property, and expressing oneself privately are rights – and ones people have been denied. For this reason, it seeks to restore these rights through blockchain solutions.

In Horizen’s words: “We live in a hyper-regulated and surveilled world where billions of individuals are deprived of basic human rights such as property ownership, privacy, free association, and access to information. The technology exists to solve some of these problems, and Zen’s early implementation will do exactly that.” 

About Horizen

Formerly known as ZenCash, the Horizen project launched in May 2017 after forking from ZClassic – a fork from privacy coin ZCash. ZClassic was merely a privacy coin, but ZenCash wanted to create an entire ecosystem that offered more than private transactions. 

As they state in the white paper: “Our team realized that Zclassic could be further extended as a fully encrypted network with an innovative economic and governance model that better aligns with Satoshi’s original vision for a decentralized global community. We view ZClassic as a fundamentally pure open source, all-volunteer cryptocurrency project, while Zen extends into a platform with internal funding to facilitate a broader set of communications, file sharing, and economic activities.”

How Does Horizen Work? 

To understand how Horizen works, let’s get a refresher of how ZCash, its grandparent blockchain, so to speak, works. ZCash accomplishes transactions through either shielded and transparent transactions. Users can choose completely private transactions through anonymous ‘z’ addresses, or transparent ‘t’ addresses. 

Horizen employs a secure messaging function and shielded transactions, providing complete anonymity for users. It accomplishes this through three main technologies: 

#1. ZenChat – a communications network that facilitates encrypted messages through industry-trusted algorithms. These texts have a 1024 character limit but are an ultra-secure way to pass messages.

#2. ZenPub – an anonymous content publishing platform that uses GNUnet or IPFS. Publishers can release such content anonymously. Horizen believes this functionality is an important extension of privacy. 

#3. ZenHide – the ability to circumvent crypto bans by domain fronting. This involves concealing the endpoints of communication. As Horizen explains, “A censor, unable to distinguish fronted and non-fronted traffic to a domain, must choose between allowing circumferential traffic and blocking the domain entirely, which results in expensive collateral damage.” This protects crypto users from hostile jurisdictions. 

Below are more functionalities of the Zen network: 

  • Governors as a Service (GaaS) – which will entail opening up access of its governance model so other initiatives can use it
  • A decentralized crypto exchange (DEX) – a platform where crypto holders can trade tokens amongst each other in a peer-to-peer, decentralized and uncensorable environment
  • Selective proof of title for a property – securing individuals’ property by providing a secure and trustless property management platform
  • Decentralized banking services – the ability to secure instant loans in a safe secure and decentralized environment
  • Peer-to-peer (P2P) insurance – a system where participants can pull their resources for various types of insurance covers

Horizen’s Secure Nodes and Standard Nodes 

Network nodes for any blockchain have the responsibility of cushioning the network against attacks. They facilitate instant and untraceable payments. In addition, they support a decentralized model of governance where nodes can make their voice heard on key issues. 

One criticism leveled against this ‘traditional’ system is that miners can switch from one coin to another in response to a coin’s changing fortunes. There’s nothing keeping miners ‘loyal’ to any particular cryptocurrency, except profits. 

To address this problem, Secure nodes on the Zen platform are required to deposit a set amount of collateral before operating a node. This is so to keep miners loyal to the network. The following are the key functions of Secure nodes:

  • Ensure all communications relied on the network are encrypted
  • Maintaining the full Zen blockchain
  • Protecting Zen wallet applications via certificate-based encryption techniques

For a node to become a Secure Node, they need to meet two major requirements:

  • Have a software that meets the provided infrastructure requirements
  • Have a memory of 4GB+

The Zen platform also features ‘standard nodes.’ These are nodes that can be operated on any Linux server Mac or PC. The standard node plays the role of both node and wallet. Standard nodes do not possess the high-level encryption of Secure Nodes, but they help to decentralize the network, help the system run optimally, and boost its resilience. 

The Horizen Team 

Horizen is engineered by a core team of three, who are Joshua Yabut, Rob Viglione, and Rolf Versluis. Yabut is an experienced scientist with a background in cryptocurrency (part of the Zclassic team) aerospace engineering and computer science. 

Viglione is a former physicist, military officer, and a mathematician. He was also a member of the Zclassic team. He is a libertarian who believes peace and freedom are an essential part of life. 

Versluis has an extensive background in IT – having worked for Cisco and is a nuclear-trained officer in the US Submarine Force. 

What’s the Market Look Like for Zen?

As of June 2nd, 2020, Horizen is trading at $6.53, at the market rank of #95. Its total market capitalization is $60, 089,955, and it has a  24-hour volume of $4, 942, 379. ZEN has a circulating and total supply of 9, 197, 938, and a maximum supply of 21, 000, 000. The token’s all-time high was $67.29 (Jan 10, 2018), and its all-time low was $3.09 (July 31, 2017). 

Where to Buy Zen

You can purchase Zen from a variety of popular exchanges such as Bittrex, Cryptopia, OKEx, Binance, HitBTC, Huobi, Sistemkoin, and CoinEX. You need to purchase cryptos such as BTC, ETH, BNB, and USDT and exchange it for Zen. You can also attempt to mine Zen here.

For storage, Zen provides the following options: 

  • Sphere, Swing and Arizen wallets for desktop
  • Horizen Core – A Command Line Interface (CLI) for the more tech-minded
  • MyZen wallet for web, and
  • Zen wallet for mobile 

Third-party options include DDT Wallet, CoolWallet, Ledger, Coinomi, Paytomat, Guarda, Magnum, Cointigo, and Ownbit. 

Final Thoughts

Zen takes the idea of privacy and expands it, creating a suite of functions that the crypto community can realize real value in. While it may not have the name recognition of Monero or ZCash, it may emerge as the dark horse of privacy coins as more and more people start treating privacy as a must-have commodity. The project is worth keeping in your sight.

Categories
Crypto Market Analysis

Daily Crypto Review, Jun 18 – Binance Pool the Biggest Miner of Craig Wright’s Bitcoin SV – What’s Actually Happening?

The crypto market has spent the past 24 hours testing its support levels after failing to break the resistance levels during yesterday’s price increase. Bitcoin is currently trading for $9,412, which represents a decrease of 0.62% on the day. Meanwhile, Ethereum lost 0.71% on the day, while XRP lost 1.37%.

The crypto market has spent the past 24 hours testing its support levels after failing to break the resistance levels during yesterday’s price increase. Bitcoin is currently trading for $9,412, which represents a decrease of 0.62% on the day. Meanwhile, Ethereum lost 0.71% on the day, while XRP lost 1.37%.

The crypto market has spent the past 24 hours testing its support levels after failing to break the resistance levels during yesterday’s price increase. Bitcoin is currently trading for $9,412, which represents a decrease of 0.62% on the day. Meanwhile, Ethereum lost 0.71% on the day, while XRP lost 1.37%.

SwissBorg took the position of today’s biggest daily gainer, with gains of 31.95%. DigiByte lost 7.95% of its daily value, making it the most prominent daily loser.

Bitcoin’s dominance stayed at the same place since our last report, with its value currently at 65.28%. This value represents a 0.04% difference to the downside when compared to yesterday’s value.

The cryptocurrency market capitalization stayed at the same place as yesterday, with the market’s current value being $267.97 billion. This value represents a decrease of $0.02 billion when compared to the value it had yesterday.

What happened in the past 24 hours

Binance Pool mining the most Bitcoin SV – Why?

Only a year after removing Bitcoin SV from its exchange, news came out that Binance (through its Binance Pool) produces more Bitcoin SV blocks through mining than any other pool. Many people would jump to the conclusion that Binance knows something we don’t, but that really isn’t the case.

Even though Binance Pool is undoubtedly the largest miner of Bitcoin Satoshi’s Vision blocks at the moment (with 26.39% of total Bitcoin SV mining on June 17), it is not Binance who is mining them, but rather the users of the Pool. However, Binance is profiting from the mining operations by imposing a 2.5% pool fee. That being said, it is highly unlikely that Binance will return Bitcoin SV to its exchange, or that its stance on the controversial coin changed.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization spent the past 24 hours testing its support levels, right after failing to break the $9,580 resistance. While the $9,251 level showed strength, bouncing the price back immediately, Bitcoin is still moving down slightly. If nothing changes in terms of volume and market sentiment in general, Bitcoin might have another go at testing this support level.


Bitcoin’s volume has decreased slightly when compared to the previous days, while its RSI level is at 50.

Key levels to the upside          Key levels to the downside

1: $9,580                                 1: $9,251

2: $9,735                                 2: $9,120

3: $9,870                                  3: $8,980

Ethereum

Ethereum made the same move as Bitcoin and had no initiative when it came to a non-correlated movement today. After failing to reach its resistance level of $240, ETH started moving towards the downside. It, however, got stopped by the (possibly) new support level of $228, bouncing the price slightly up towards $235. The price stopped after reaching $235 and started moving sideways, possibly threatening the downside once again.


Key levels to the upside          Key levels to the downside

1: $240                                    1: $228

2: $251.4                                 2: $225.4

3: $198                                    3: $217.6

Ripple

XRP had a slightly different movement when compared to BTC and ETH, but with the same sentiment. The third-largest cryptocurrency by market cap failed to reach $0.2 successfully, therefore making the possibility of breaking the resistance almost none-existent in the short-term. This triggered the bears to test the support level of $0.19, which (after some fighting) managed to hold its position. XRP is now trading just above the support line, preparing for the next move.


Key levels to the upside          Key levels to the downside

1: $0.2                                      1: $0.19

2: $0.205                                  2: $0.178

3: $0.214

 

Categories
Cryptocurrencies

Komodo Project: Everything you’ll need to know about this Privacy Coin

One of the pain points of the pioneering blockchain – Bitcoin, is its pseudonymity of transactions that make it possible (although hard) for an interested third party to track down the real-world identities of individuals. In an era when privacy is more valuable than ever, such a state of affairs is doomed to be unsatisfactory to many. 

One of the pain points of the pioneering blockchain – Bitcoin, is its pseudonymity of transactions that make it possible (although hard) for an interested third party to track down the real-world identities of individuals. In an era when privacy is more valuable than ever, such a state of affairs is doomed to be unsatisfactory to many. 

One of the pain points of the pioneering blockchain – Bitcoin, is its pseudonymity of transactions that make it possible (although hard) for an interested third party to track down the real-world identities of individuals. In an era when privacy is more valuable than ever, such a state of affairs is doomed to be unsatisfactory to many. 

This is why many succeeding blockchains have attempted to provide a bit more privacy. One of those is the Komodo blockchain, which is a fork of the ZCash blockchain – itself a privacy blockchain. 

Komodo aims to be a blockchain powerhouse of sorts. It’s a decentralized exchange, an atomic swap, and a decentralized ICO platform. 

In this guide, we discover more about what Komodo is all about, along with the platform’s token.

What is Komodo? 

Komodo is a privacy coin and blockchain project that aims to be a faster, more secure alternative to the traditional blockchain. It’s a platform that allows crypto developers to launch ICOs as well as their blockchains. Besides, the Komodo platform hosts a decentralized exchange as well as an anonymizer that keeps transactions private. 

Komodo is built off of ZCash, another privacy coin, and inherits some of its privacy features such as the ZK-SNARK technology. These privacy features enable users to spend, send, and receive funds without leaving a trackable trail. This, when combined with Komodo’s anonymization tool Jumblr, provides the utmost privacy for users. 

Who is the Team Behind Komodo? 

In keeping with the privacy theme of the Komodo ecosystem, the project’s architects have chosen to remain pseudonymous. The project’s lead identifies by “jl777” Lee, and the  chief technology officer as “ca333.”

How Does the Komodo Platform Work? 

The Komodo platform encompasses several components that make up its entire ecosystem. The team would like you to know that they call “features” what others call “revolutionary.” With that, let’s look at Komodo’s features. 

#1. BarterDEX

BarterDEX is a decentralized, atomic swap-enabled exchange. Atomic swaps mean directly exchanging one token for another instead of relying on proxy tokens like on centralized exchanges. This reduces counterparty risk. 

BarterDEX also deals with the problem of low liquidity that is common with decentralized exchanges. It does this by utilizing ‘liquidity provider nodes’ (LP nodes), which stabilize the market by making it easier for traders to conduct trades. 

#2. Jumblr

Komodo utilizes an open-source and decentralized anonymizer known as Jumblr to obscure transactions’ trail. This renders it impossible for third parties to track down your identity. 

The process works as follows. The anonymizer redirects your Komodo (KMD) tokens from all non-private addresses into several (private) zk-SNARK addresses. These obscured addresses remove any trail from the transactions. Then, the tokens are rerouted towards a new address that you have chosen. Jumblr is also connected to BarterDEX. This means you can also add an extra layer of privacy to your trades. 

#3. Delayed Proof-of-Work (dPoW)

Komodo uses a hybrid consensus mechanism known as Delayed Proof-of-Work (dPoW) to maintain the network. In a ‘Komodo twist,’ the dPoW relies on an original consensus algorithm with no specification on what it could be. Such an algorithm can either be Proof-of-Work or Proof-of-Stake. This hybrid mechanism allows the Komodo platform to capitalize on the security provided by the hashing power of another blockchain. 

The dPoW mechanism uses two nodes: notary and normal nodes. Just like in a delegated Proof-of-Stake mechanism, stakeholders are responsible for choosing notary nodes who will determine the validity of transactions. In Komodo, 64 notary spots can be filled at any given time, but 13 of those are enough to secure the network. These nodes are tasked with the responsibility to notarize blocks from the dPoW chain onto the secondary blockchain. 

Like we noted earlier, a dPoW network can be built on top of a secondary algorithm. Komodo’s dPoW is built on Bitcoin’s Proof-of-Work algorithm for the latter’s strong hash rate, which enables a robust, secure network. And transactions taking place using dPoW do not have to pay transaction fees for using the secondary blockchain. 

#4. Decentralized Initial Coin Offerings (dICOs)

Komodo also supports decentralized Initial Coin offerings (dICOs). A dICO is in many ways similar to the traditional ICO, but avoids much of the pitfalls associated with a centralized system. By just a few Komodo commands, you can get started on your own blockchain and kickstart an ICO. 

Below are the advantages of a dICO: 

  • You can distribute your new coins among community members without them being scooped up by whales.
  • The benefits of the entire Komodo platform, including the BarterDEX
  • Removal of a single point of failure which is prone to attack and could jeopardize the initiative
  • Users can participate anonymously, thanks to the Jumblr anonymizer.

What’s the Komodo (KMD) Token?

The KMD token is the native currency of the Komodo platform. It powers transactions on the Komodo platform; and will gain more usefulness as more functionalities are built upon it. 

As of May 31, 2020, KMD is trading at $.0633420, while ranking at #78 in the market. It has a market cap of $76, 012, 370, a 24-hour volume of &6, 207, 821, a circulating and total supply of 120, 003, 181, and a maximum supply of 200, 000, 000. It has an all-time high of $10.00 (Dec 21, 2017) and an all-time low of $0.002143 (March 13, 2017).

Where to Buy and Store KMD

You can purchase KMD directly or trade another cryptocurrency for it on a variety of reputable exchanges such as Bittrex, Binance, Cointree, Changelly, Huobi, HitBTC, Shapeshift and Bitit. 

When it comes to storage, you have numerous options. You can opt for Komodo’s own Agama wallet, Komodo OceanQT, or paper wallet. If you’re more tech-savvy, you can also go for the Komodo CLI (Command Line Interface). Other options include third-party wallets such as Zerus wallet, Guarda Wallet, and Ledger. 

Conclusion

Komodo is a project that’s flipping the script on what a blockchain system can be all about. From being a decentralized ICO platform to featuring an anonymizer to hosting a decentralized exchange. The platform’s Jumblr technology combined with ZCash’s ZK-SNARK ensures utter privacy for users, and you can easily kickstart your blockchain project by executing a few commands on the platform.  As the platform continues to evolve, fans of the project can expect more exciting things. 

Categories
Crypto Videos

Craig Wright Admitted to Hacking MT. GOX!

https://youtu.be/mo3sBq2l8h8

https://youtu.be/mo3sBq2l8h8

Craig Wright Admitted to Hacking Mt. Gox?

 

Craig Wright’s legal team seems to have alleged that Wright controls one of the BTC addresses that is affiliated with the Mt. Gox hack.
Riccardo Spagni, one of the faces of the anonymous Monero coin, which is also known as Fluffy Pony, posted a tweet indicating Craig Wright’s affiliation with the Mt. Gox-related Bitcoin wallet.

Spagni tweeted, “Just so we’re clear, Craig Wright has openly admitted (through his lawyers) to be the person that stole 80,000 BTC from Mt. Gox.” Spagni also included court documents in the post.
The documents he posted indicate that the ‘1Feex’ address is the address where the stolen Mt. Gox funds were sent.

Mt. Gox address included among the Tulip Trust addresses

 

As a part of an ongoing legal battle, Craig Wright claims to have at least partial ownership of the Tulip Trust, which is a list of numerous Bitcoin wallet addresses that hold roughly 1.1 million Bitcoin. The aforementioned Bitcoin was allegedly mined by Wright and his business associate, Dave Kleiman, in Bitcoin’s earliest days.

Dave Kleiman passed away in 2013, leaving Wright completely unable to move the funds on his own. Spagni’s claim alongside the court document screenshots presented indicate that one of the alleged Tulip Trust wallet addresses contain stolen funds from the 2014 Mt. Gox hack.

Categories
Crypto Videos

Is There No Way to Cash Out From Grayscale? #Fail

https://youtu.be/NoE3a7Cjknc

https://youtu.be/NoE3a7Cjknc

 

Is There No Way to Cash Out From Grayscale’s BTC Trust

Qiao Wang, an investor, analyst as well as head of product at the crypto market data firm Messari, raised some major criticism about the way Grayscale’s Bitcoin Trust is set up.
In his tweet dating June 11, Wang cited Grayscale’s official website, which says that “Grayscale Bitcoin Trust does not (at the moment) operate a redemption program, which means it may halt creations from time to time.” Wang suggested that the absence of a redemption mechanism might result in GBTC trading at a discounted rate compared to the net asset value.


He later explained that, when an exchange-traded fund (ETF for short) trades at a discounted rate compared to the fund’s underlying assets, traders performing arbitrage can buy the contract on an exchange and then redeem it for the assets that back it.
“Without the ability to redeem Bitcoin, you are just donating your money to Grayscale.” – Wang said.

Grayscale’s growth since the Bitcoin halving

Recent news clearly shows that Grayscale’s cryptocurrency holdings are growing at an extraordinary rate. Grayscale has bought Bitcoin one and a half times faster than the miners were producing since May 11, which is the date of the Bitcoin block reward halving.
On top of that, Grayscale’s director of investor relations, Ray Sharif-Askary, has recently announced that Grayscale has also been aggressively buying Ethereum as well.

Categories
Cryptocurrencies

What is Lisk (LSK)? 

Bitcoin was about taking power from centralized finance systems. Thanks to the vision of Satoshi Nakamoto, individuals can own a currency that cannot be censored, controlled, or frozen by anyone. And now, ten plus years after their groundbreaking currency, Satoshi would be gratified to know that their idea is coming true in other facets of our society.

Bitcoin was about taking power from centralized finance systems. Thanks to the vision of Satoshi Nakamoto, individuals can own a currency that cannot be censored, controlled, or frozen by anyone. And now, ten plus years after their groundbreaking currency, Satoshi would be gratified to know that their idea is coming true in other facets of our society.

Bitcoin was about taking power from centralized finance systems. Thanks to the vision of Satoshi Nakamoto, individuals can own a currency that cannot be censored, controlled, or frozen by anyone. And now, ten plus years after their groundbreaking currency, Satoshi would be gratified to know that their idea is coming true in other facets of our society.

Bitcoin’s driving technology, blockchain, is being harnessed for a raft of industries. But one area that’s not so obvious is the one for decentralized applications (DApps). DApps are a new kind of apps not controlled or regulated by any single entity.

They are the polar opposite of traditional applications whose developers are at the whims of centralized entities.

Lisk is hoping to change this by empowering developers all over the world with the means to earn from their work. Let’s get a closer look at how it plans to make this happen.

What is LISK? 

Launched in May 2016, Lisk is an open-source and blockchain-based platform that aims to make blockchain technology more accessible for developers to build decentralized applications (DApps). It does this by employing side chain technology.

Lisk aims to address the problem developers face when creating applications using blockchain. Developers work so hard but are usually under the mercy of centralized entities (such as Google Play and Apple’s App Store), which get the largest share of revenues.

Lisk aims to correct this by creating a decentralized platform that will allow developers to deservedly earn from their work. Also, instead of using a proprietary coding language, Lisk utilizes JavaScript, the most well-known, so as to accelerate development to make it easier for developers to join the platform.

How Does Lisk Work 

Lisk is a platform that lets developers create decentralized applications ((just like Ethereum or NEO). However, Lisk distinguishes itself in several ways.

For instance, Ethereum uses Solidity, a language unique to it, thus requiring developers who wish to use the platform to learn a new language. Also, the platform is majorly dedicated to smart contracts. This ingrained code means third parties have to operate as front-end applications.

Lisk utilizes sidechain technology and a software development kit (SDK) to empower developers to produce high-quality DApps.

Sidechains

Sidechains are independent blockchains that connect to the main blockchain without interfering with its performance. This creates interoperability that enables users to perform previously impossible tasks such as transferring your tokens directly between chains. For developers, sidechain tech allows them to customize things like consensus algorithms, testnets, and asset tracking.

Many side chains feature just one blockchain (e.g., Bitcoin) or are developed for private blockchains. Lisk wants to combine these to create the best solution: maintain security with side-chain flexibility. Developers can create their own blockchain – which will function as a sidechain, while Lisk maintains the mainchain – which is secured by 101 delegates. As such, were a side chain to go down, the network and the main chain would not be affected.

How is Lisk Different?

Lisk seeks to make blockchain tech more accessible to developers. To this end, they’ve created a set of blockchain developing tools based on JavaScript. The platform wants to achieve a high-level user experience and offer unprecedented developer support.

Lisk’s SDK comprises three core parts:

  • Consensus Algorithm – which is Delegated Proof of Stake (DPoS)
  • Sidechain – which lets developers create independent blockchains linked to the main chain
  • Back-end – a fully customizable code that allows developers to create decentralized applications autonomously
  • Front-end – friendly user interface (UI) where the public can interact with the chains

By bringing together the capacity of the main chain with open-source blockchain development kits, developers have the free rein to create exciting, convenient, and accessible digital apps. They can then make the apps available as a package in a decentralized app repository. The LSK token is used to power transactions and services on the Lisk blockchain.

Delegated Proof of Stake 

Lisk uses a delegated proof of stake mechanism that works as follows. Anyone can become a delegate by registering an account on the network. With this account, you can easily collect votes from any LSK holder. 1 LSK token is equal to 1 vote, and an LSK holder can vote with their current LSK holdings.

The 101 delegates with the most votes get to add new blocks on a blockchain and, by so doing, secure the network. These delegates are said to be on an “active” mode. The rest of the delegates are on “standby.” Also, the order of the active and the standby delegates is constantly changing.

The Lisk Team 

Lisk is led by a vibrant team led by Max Kordek and Oliver Beddows. Kordek is President/CEO and co-founder. He has been an avid follower of blockchain,  and he gathered a lot of insights on the technology for years before creating Lisk. He’s also an ardent fan of science fiction.

Beddows is Vice President/CTO and Founder. He has 12 years of development experience under his belt, and he believes blockchain is a powerful tech that can change the world for the better.

What’s the Market Look Like for LSK? 

As of June 4, 2020, Lisk is trading at $1.25, while ranking at #51 in market capitalization. It has a market cap of $154, 891, 635,  a 24-hour volume of $5, 295, 614, a circulating supply of 123, 957, 448, and a total supply of 140, 012, 060. LSK’s all-time high was $39.31 (Jan 7, 2018), and its all-time low was $0.095652 (Mar 02, 2017).

Where to Buy and Store LSK 

You can find Lisk in a variety of exchanges, including Binance, Poloniex, Bittrex, HitBTC, Coinswitch, Kraken, Cointree, KuCoin, YoBitNet and Huobi. For the majority of the exchanges, you’ll need to first purchase BTC or ETH and then exchange it for Lisk.

Lisk has a Wallet available for both desktop and mobile. The desktop version allows you to vote for delegates as well as monitor the Lisk blockchain: inspect delegates, monitor transactions and blocks, and so on. Lisk also recommends these third-party wallets: Trezor One, Trezor Model T, Ledger Nano S, and Ledger Nano X.

Final Words

Lisk is a blockchain project that’s actualizing the Bitcoin dream – taking power from centralized systems and handing it back to the people. For too long, talented and hard-working developers have had to cede to corporate machines, which take the lion’s share of the revenue from their hard work.

Lisk is about to change this by creating a decentralized platform where developers can utilize a set of powerful tools to create decentralized apps and take back their earning power. Also, its use of JavaScript will help it cultivate a user base of millions of already trained developers, and has the potential to thrust it to the forefront of the blockchain space. It’s certainly one to watch.

Categories
Crypto Daily Topic

Coinbase in a Deal to Sell Crypto Surveillance Tools to US Feds

Coinbase, the largest cryptocurrency exchange in the US, has offered to procure Coinbase Analytics, its analytics platform, to US agencies, including the Internal Revenue Service (IRS) and the Drug Enforcement Administration (DEA). The Block broke the story on June 5th. 

Coinbase, the largest cryptocurrency exchange in the US, has offered to procure Coinbase Analytics, its analytics platform, to US agencies, including the Internal Revenue Service (IRS) and the Drug Enforcement Administration (DEA). The Block broke the story on June 5th. 

Coinbase, the largest cryptocurrency exchange in the US, has offered to procure Coinbase Analytics, its analytics platform, to US agencies, including the Internal Revenue Service (IRS) and the Drug Enforcement Administration (DEA). The Block broke the story on June 5th. 

Records seen by the publication indicate the DEA and the IRS have entered into licensing agreements with Coinbase for an analytics tool called Coinbase Analytics. Documents relating to the deal were publicly published in April and May for the IRS and the DEA, respectively.

Coinbase Analytics is closely tied to the company’s entire ecosystem. According to a publicly available job posting, the Senior Product Manager for Coinbase Analytics “collaborates” with the “Coinbase Consumer, Coinbase Pro, and Coinbase Custody” plus Coinbase’s payments and cryptocurrency division. 

However, Coinbase has denied any relationship between Coinbase Analytics and its internal customer records. In an email to CoinDesk, a spokesperson for the exchange wrote:” Coinbase Analytics data is fully sourced from online publicly-available data, and does not include any personally identifiable information for anyone, regardless of whether or not they use Coinbase.” 

Coinbase and Neutrino

Worth noting is the IRS announcement that mentions the connection between Coinbase Analytics and Neutrino, an intelligence company controversially acquired by Coinbase in 2019. The purchase evoked controversy because Neutrino’s founders were linked to an Italian spyware entity known as the Hacking Team. 

The IRS document notes: “As law enforcement techniques evolve and other cryptocurrencies gain acceptance, criminals are using other types of cryptocurrencies, not just Bitcoin, to facilitate their crimes. In addition to the Bitcoin Blockchain, Coinbase Analytics (fka Neutrino) allows for the analysis and tracking of cryptocurrency flows across multiple blockchains that criminals are currently using. Coinbase Analytics also provides some enhanced law enforcement sensitive capabilities that are not currently found in other tools on the market. This action will result in a Firm Fix Priced purchase order, Period of Performance: One base year from date of award with one 12-month option.”

Public records show that Coinbase is yet to be granted the awards, neither does the company appear in USASpending.gov, a government directory for contract awards.

Coinbase confirmed to The Block that it indeed developed the product with the assistance of Neutrino. It added that it’s willing to offer Analytics to financial and regulatory agencies and that the tool can also be used for internal investigations. “It’s an important tool to meet our regulatory requirements and protect our customers’ funds,” said the company.

DEA’s interest in this technology seems to be informed by Coinbase Analytics’s high-level accuracy. The federal organization states that the tool has “some of the most conservative heuristics used in commercial blockchain tracing tools,” a “critical” component that can avoid false positives.

Backlash From the Crypto Community

The backlash from the crypto community and the exchange’s users was swift. Indeed, users are walking away in droves and looking for alternatives. Data from Glassnode indicates that the walkout was further compounded by recent outages on Coinbase during Bitcoin’s spike. Users on the platform withdrew 22, 000 more Bitcoin than they deposited two days earlier before the Coinbase Analytics story broke.

Crypto Twitter Chimes In

Crypto Twitter is weighing heavily on the matter. Influential crypto trader Matt Odell scathingly tweeted, “if you use Coinbase, you should delete your account.” Odell’s sentiments were echoed by many others who expressed concern on whether exchange could be trusted to keep user data private. 

Another crypto entrepreneur Josh Rager conducted a Twitter poll of 5,000 people that revealed  2/3 of Coinbase users were willing to ditch the exchange. Amplifying the thoughts and feelings of many, Rager opined that “Millions of dollars seem to be leaving Coinbase as we speak. Investors and traders are no longer limited to Coinbase or  Bitmex. If you screw over customers, take part in shady deals, or don’t improve the product, customers can now go elsewhere to trade/invest.”

Jameson Loop, another notable crypto personality, expressed his displeasure, saying: “This is no surprise, our distrust in you is strengthened, we will make your analytics software obsolete.” 

Many users chimed in to decry the decision, adding queen bees uses to delete the exchange. The hashtag #DeleteCoinbase was appearing on the top 10 Twitter trends. 

Categories
Crypto Market Analysis

Daily Crypto Review, Jun 17 – Craig Wright Called a Thief or a Fraud by the Ex CEO of Mt. Gox

The crypto market has taken its time to consolidate throughout the day, as well as possibly test nearest resistance levels. Bitcoin is currently trading for $9,447, which represents an increase of 0.56% on the day. Meanwhile, Ethereum gained 1.6% on the day, while XRP lost 0.07%.

The crypto market has taken its time to consolidate throughout the day, as well as possibly test nearest resistance levels. Bitcoin is currently trading for $9,447, which represents an increase of 0.56% on the day. Meanwhile, Ethereum gained 1.6% on the day, while XRP lost 0.07%.

The crypto market has taken its time to consolidate throughout the day, as well as possibly test nearest resistance levels. Bitcoin is currently trading for $9,447, which represents an increase of 0.56% on the day. Meanwhile, Ethereum gained 1.6% on the day, while XRP lost 0.07%.

SwissBorg took the position of today’s biggest daily gainer, with gains of 30.87%. DigiByte lost 6.96% of its daily value, making it the most prominent daily loser.

Bitcoin’s dominance stayed at the same place since we last reported, with its value currently at 65.32%. This value represents a 0.2% difference to the downside when compared to yesterday’s value.

The cryptocurrency market capitalization increased over the course of the day, with the market’s current value being $267.99 billion. This value represents an increase of $2.35 billion when compared to the value it had yesterday.

What happened in the past 24 hours

Craig Wright called a liar or a thief by Mark Karpeles

Former CEO of Mt. Gox Mark Karpeles claims that the 80,000 Bitcoin that Dr. Craig Wright lays claim to was actually stolen from the Mt. Gox exchange in March 2011. This claim isn’t just empty words, as cryptocurrency experts side with Karpeles. The Bitcoin residing at one of the addresses that Craig Wright listed among the numerous addresses he supposedly owns was stolen from Mt. Gox.

Karpeles said, “This was confirmed in 2011, and records are a part of court documents available publicly.”

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization spent the past 24 hours trying to consolidate above $9,251 as well as to test the $9,580 resistance level for a brief amount of time. The resistance was strong, and Bitcoin couldn’t break it, which continued its consolidation within a range bound by $9,251 and $9,580.


Bitcoin’s volume decreased after the recovery bull run ended, while its RSI level currently stagnates at around 51.

Key levels to the upside Key levels to the downside

1: $9,580 1: $9,251

2: $9,735 2: $9,120

3: $9,870 3: $8,980

Ethereum

Ethereum seems to have had a solid day, not only recovering from the plunge but slowly rising in price as well. However, the most recent sentiment shows that bears are testing how far they can go. Whether bears manage to drive ETH’s price down a bit or not, there’s still a long way until the $225.4 support level.


Ethereum’s volume lower and lower as the time passes, while its RSI level hovers below the value of 50.

Key levels to the upside Key levels to the downside

1: $240 1: $225.4

2: $251.4 2: $217.6

3: $198

Ripple

XRP had a decent day as well, as the price drop ended after the price hit the red descending line and bounced from it. The third-largest cryptocurrency by market cap managed to get back above $0.19 (which is, as we mentioned yesterday, a big deal for XRP) and consolidate above it. The line got tested once, without much success for the bears.


XRP’s volume is a bit below the weekly average (after excluding the volume bumps for upward and downward spikes), while its RSI level is just below 50.

Key levels to the upside Key levels to the downside

1: $0.2 1: $0.19

2: $0.205 2: $0.178

3: $0.214

 

Categories
Cryptocurrencies

What is Theta All About? 

Current video sharing platforms face a ton of issues, ranging from downtimes to high-maintenance costs to a poor reach in less developed countries. There is also the issue of centralization, meaning they are owned, controlled, and regulated by their owners. This means only ‘agreeable’ content, by their (owners) standards, is allowed.

Current video sharing platforms face a ton of issues, ranging from downtimes to high-maintenance costs to a poor reach in less developed countries. There is also the issue of centralization, meaning they are owned, controlled, and regulated by their owners. This means only ‘agreeable’ content, by their (owners) standards, is allowed.

Current video sharing platforms face a ton of issues, ranging from downtimes to high-maintenance costs to a poor reach in less developed countries. There is also the issue of centralization, meaning they are owned, controlled, and regulated by their owners. This means only ‘agreeable’ content, by their (owners) standards, is allowed.

Blockchain was invented to democratize and decentralize finance. But we don’t have to stop there. We can tap into the power of blockchain to achieve decentralization in other areas of society.

Theta is a blockchain and cryptocurrency project that seeks to provide a blockchain-powered video sharing experience. The token has been making headlines lately, with its raging rally of nearly 1300% since the crypto market’s downturn in mid-March precipitated by the Corona pandemic. Its inking of partnerships with big-time companies such as Android TV, Samsung, and Google is making the news.

What is Theta all about? This piece dives into that question, and more.

What is Theta?

Theta is a blockchain-powered platform that supports decentralized video streaming and delivery.  It aims to solve issues in current video sharing networks such as poor rich to developing countries, high costs of setting up, maintenance and bandwidth, and centralization.

These factors mean that video-sharing platforms lose out on revenue and that content can be censored. Furthermore, the current infrastructure is mostly unprepared for the changes that will be occasioned by upcoming developments such as 4K, 8K, 360° virtual reality streaming, and others such as light field technology.

The platform aims to solve these issues with the transformative blockchain. The tech will incentivize users through the Theta token, while also enabling a high-performance environment.

In Theta’s words, the company’s mission is to “leverage blockchain technology to create the first Decentralized Video Streaming and Delivery Network whereby video viewers are incentivized to share redundant computing and bandwidth resources to address today’s video streaming challenges.”

Who is Behind Theta?

Theta is the brainchild of Mitch Liu and Jieyi Long. Liu is the co-founder of Gameview Studios and a co-founder of Tapjoy. He holds a degree in Computer Science and Engineering from MIT and an MBA from Stanford. Long has a degree in Microelectronics from Peking University as well as a PhD in Computer Engineering from Northwestern University. He’s also the patent owner of various technologies in virtual reality and video game replays.

There is also a long list of engineers and architects, as well as advisors such as YouTube co-founder Steven Chen. Theta has also partnered with former members of media companies such as Twitch, Verizon Plays.tv, and others. Other partners at various stages include Samsung VR and NBN, one of the biggest media companies in Korea.

How Does Theta Work?

We will explore various functionalities of Theta and how it achieves its mission.

#1. Caching Nodes

The current content delivery networks comprise huge data centers in various parts of the globe. Due to their vast geographical distances from viewers, data streaming is often low quality. Theta proposes to solve this by creating a peer-to-peer network of users who share their network bandwidth. The end goal is to have a global network that can supplant or supplement existing content delivery networks.

This will be achieved by users from across the globe, lending their devices as “caching nodes.” The caching nodes will then form a robust mesh network that will be capable of delivering quality video streams to viewers across the globe. The network will reward caching nodes with Theta tokens, incentivizing users to continue contributing their spare bandwidth resources –  and thus strengthening the Theta network.

According to Theta, this will not just improve video reach and quality, but massively reduce costs. And this will be made possible by the eliminated need to maintain the current enormous data centers.

#2. Improved Resilience

Theta is also set to enhance the resilience of the whole infrastructure. As of now, the video streaming industry relies on a few data centers scattered across the globe. This is risky since if some of them were to go down for any reason, global streaming would be adversely affected. By distributing (and decentralizing) the caching and relay points to thousands of nodes, the Theta network can realize a sturdier network far more than the current systems can support.

#3. Quality Variance

Two problems present with the caching nodes. One is the difference in the quality of different nodes. The other is the possibility of nodes dropping off. To counter these problems, Theta has built a mechanism that will allow nodes to identify the geographically closest nodes to them, allowing them to connect with their nearest peers rather than random nodes situated in any corner of the world. This enables nodes to pull streams in a more consistent fashion.

What is Theta Token? 

The Theta network incentivizes viewers with Theta tokens to share their computing and bandwidth resources. Caching nodes are rewarded with tokens for relaying video streams to other network users. This, in effect, also increases streaming market efficiency by streamlining the delivery process.

Video publishers/advertisers can also directly reach viewers at a much-reduced cost, while viewers earn tokens for watching/interacting with content. Also, streaming platforms can realize new avenues for content sharing and revenue-generating with Theta. Below is a more detailed Theta token structure.

  • Caching nodes rewarded with tokens for streaming videos to other users
  • Caching nodes rewarded for engaging with content and in turn gifting (optionally) their favorite content creators
  • Streaming sites can leverage new content sharing avenues and engage better with users.
  • Advertisers funding campaigns with tokens
  • Streaming platforms can save up to 80% of content network costs.

What is Theta’s Consensus Mechanism? 

Theta utilizes a ‘Multi-level BFT’ consensus mechanism that allows thousands of nodes to take part in the consensus process. At the same time, the mechanism supports throughput of 1000+ transactions per second (TPS).

This mechanism utilizes a small set of nodes that acts as the ‘validator committee.’ This validator committee can produce new blocks super fast. Just 10 to 20 validators can do this – while still maintaining a high degree of difficulty to cushion against attacks on the blockchain. Then the rest of the network participants, also called ‘guardians,’ can finalize the process initiated by the validators. Finalization here refers to convincing each honest guardian that more than two-thirds of the guardians see the same chain of blocks.

Tokenomics of Theta

As of May 30, 2020, Theta traded at $0. 298066, while ranking at #35 in the crypto market. It has a market cap of $259, 466, 860, with a 24-hour volume of $66, 056, 366. Its circulating supply is 870, 502, 690, with a total supply of 1 billion. Its all-time high was $0. 555652 (May 27, 2020) while its all-time low was $0. 039771, (March 13, 2020).

Where to Buy and Store Theta Token

You can purchase Theta from any of several popular exchanges such as Coinbit, Bithumb, Upbit, Binance, Huobi, DigiFinex, Bkex, Biki, OKex, Hotbit, Gate.io, and WazirX. Coinbase, a popular exchange, does not yet support Theta. In the majority of the exchanges, Theta is available as a trading pair with Bitcoin, Ethereum, USDT, Binance Coin, and so on.

Likewise, you can store Theta tokens at any of trusted wallets such as Ledger, Trezor, Keep Key, MyEtherWallet, Exodus, and Coinomi.

Final Words

Theta provides incredible solutions to the current issues faced by video delivery networks. Its peer-to-peer mesh network, incentivized and powered by the blockchain, is certainly exciting and with a lot of potential. The only challenge for Theta is to maintain the quality of the platform as well as the decentralized nature of the network. Fans and network users will be relying on this.

Categories
Cryptocurrencies

What is Ontology?

After blockchain’s introduction to the world, the tech space was quick to notice how technology could be used for a lot more than cryptocurrency. Blockchain is a technology that is distributed, transparent (hence automating trust), uses cryptography to achieve high-level security, and supports immutable records. With these groundbreaking features, it would be crazy for the technology not to be tapped to streamline and optimize functions in industries.

After blockchain’s introduction to the world, the tech space was quick to notice how technology could be used for a lot more than cryptocurrency. Blockchain is a technology that is distributed, transparent (hence automating trust), uses cryptography to achieve high-level security, and supports immutable records. With these groundbreaking features, it would be crazy for the technology not to be tapped to streamline and optimize functions in industries.

After blockchain’s introduction to the world, the tech space was quick to notice how technology could be used for a lot more than cryptocurrency. Blockchain is a technology that is distributed, transparent (hence automating trust), uses cryptography to achieve high-level security, and supports immutable records. With these groundbreaking features, it would be crazy for the technology not to be tapped to streamline and optimize functions in industries.

The problem is, there have been a few barriers preventing this realization. One is the complex nature of blockchain. The other is, blockchain is not cheap. If an organization were to integrate blockchain into their infrastructure, they would either a.) build a blockchain solution from the ground up or b.) utilize the services of an established blockchain service.

Option A is incredibly costly since you’d have to dedicate enormous time and financial resources. Option B, however, would be more convenient and resource-saving.

Ontology is an organization that aims to provide enterprises with affordable and customized blockchain solutions. It also seeks to change the old way of giving and receiving trust – through blockchain.

What is Ontology?

Ontology is a Chinese blockchain-based company launched in 2017. The project’s founders envisioned an open platform that provides blockchain solutions to businesses across multiple industries in a collaborative and trustless environment. It will hopefully be a start in breaking down barriers between blockchain and businesses.

The Ontology platform is forward-thinking in the sense that it allows businesses without prior interaction with blockchain to utilize the technology. The blockchain concept can be complicated, and there is currently no easy way for businesses to incorporate the tech. Additionally, legacy trust networks have several inefficiencies, such as poor data security, untapped data assets, monopolization of data, and poor identity management. All these create avenues for blockchain to provide trustless, consensus-based, and fraud-proof solutions.

Via Ontology’s tools, organizations from anywhere can create collaborative trust mechanisms and customize them according to their specific needs. And all this without going through an expensive and time-consuming learning curve.

In Ontology’s words: “Ontology is a blockchain/distributed ledger network which combines a distributed identity system, distributed data exchange, distributed data collaboration, distributed procedure protocols, distributed communities, distributed attestation, and various industry-specific modules. Together this builds the infrastructure for a peer-to-peer trust network, which is cross-chain, cross-system, cross-industry, cross-application, and cross-device.” (source coincentral.com)

What’s the Deal with Ontology and Neo?

The Ontology project is so closely associated with Neo that it’s so easy to conflate the two. And understandably so, since it was created by June Li, under a company known as OnChain, which is headed by Da Hongfei, who is also the creator of Neo.

During Ontology’s launch, Hongfei said this about the two projects: “Ontology and Neo will build a broad ecosystem using blockchain and other new technologies to serve the real economy.” But Hongfei wants you to know that NEO and OnChain are two very separate entities and neither owns the other.

In a YouTube video, Hongfei clarified as follows: “First, I need to clarify that NEO and OnChain are separate entities, so OnChain doesn’t own NEO, or NEO, OnChain. They are separately funded – NEO is funded by the community, and OnChain is funded by a very famous financial group in China, Fosun… So they are separate. Second, OnChain benefits from the NEO ecosystem. The product, called DNA (Distributed Networks Architecture), is very similar to NEO, but it is written in the Go language. OnChain is helping other blockchains and financial institutions to build the blockchains with DNA. It’s basically very similar to NEO, and in the future, with NEOx (the cross-chain protocol), everything can be linked together.”

Ontology’s Trust Framework

The Ontology blockchain offers four service layers:

  1. An application for end-users
  2. A trusted data transmission solution for optimizing data distribution
  3. A layer for streamlining the industrial chain and building a healthy ecosystem that thrives on collaboration rather than competition
  4. A legally compliant arbitration system

The trust framework relies on these core elements:

  • A trust system featuring decentralized supervision, a distributed collaboration, and a centralized “strong trust anchor.”
  • The Ontology decentralized identification (ONT ID)  that connects people, assets, things, data, affairs, and services.
  • A blockchain-based framework that caters to different businesses security needs while balancing features and performance

Ontology’s Tokens

Ontology utilizes a dual token model. One token – ONT is used for staking in consensus while ONG gives users the right to use the network. ONG is issued periodically.

20 million ONT was distributed to NEO holders in March 2018, after initial distribution of 1000 ONT tokens to people who had signed up to their newsletter. Here’s a more detailed breakdown of the token’s distribution:

  • 12 went to Ontology’s early supporters
  • 28% went to project partners
  • 10% went to the NEO council
  • 25% was reserved for future development of the Ontology ecosystem
  • 10% went to the project’s technical community
  • 15% was awarded to the Ontology core team

Tokenomics of Ontology

As of May 30, 2020, ONT was trading at $0. 521271 at position #29 in the overall crypto market, with a total market capitalization of $361, 890, 441, and a 24-hour volume of $74, 832, 588. It has a circulating supply of 694, 246, 573, while its total supply is 1, 000, 000, 000. ONT’s all-time high was $10.00 (May 03, 2018), while it’s all-time low was $0. 224974, (March 13, 2020).

Where to Buy and Store ONT 

You can get ONT from any of several reputable exchanges, including Coinswitch, CEX.io, Cointree, Changelly, KuCoin, Binance, gate.io, Huobi, and Binance.

Once you purchase your tokens, it’s highly recommended that you do not store them in the exchange – as exchanges are highly prone to hacks. Instead, store them in a secure wallet. Options such as Ledger, Trezor, Atomic Wallet, Coinomi, and Guarda Wallet are some of the best choices.

Final Words

Ontology is changing the way we gain trust by automating the process through blockchain. Working together with NEO, the company is hoping to bridge the chasm between blockchain and the business sector.

The team behind Ontology is reputable in the blockchain space with a history of success, and it’s set to steer the project to great heights. Businesses can leverage the Ontology product and achieve streamlined, more effective, and trustless processes.

Categories
Crypto Market Analysis

Daily Crypto Review, Jun 16 – BTC Whale Count Back To Dec 2017 Levels; BTC Back Above $9,000

The crypto market has taken the day to restore its price level to the pre-drop of June 15. Bitcoin is currently trading for $9,386, which represents an increase of 1.46% on the day. Meanwhile, Ethereum lost 0.05% on the day, while XRP gained 1.85%.

The crypto market has taken the day to restore its price level to the pre-drop of June 15. Bitcoin is currently trading for $9,386, which represents an increase of 1.46% on the day. Meanwhile, Ethereum lost 0.05% on the day, while XRP gained 1.85%.

The crypto market has taken the day to restore its price level to the pre-drop of June 15. Bitcoin is currently trading for $9,386, which represents an increase of 1.46% on the day. Meanwhile, Ethereum lost 0.05% on the day, while XRP gained 1.85%.

Verge took the position of today’s biggest daily gainer, with gains of 21.03%. Flexacoin lost 13.05% of its daily value, making it the most prominent daily loser.

Bitcoin’s dominance stayed at exactly the same place since we last reported, with its value currently at 65.52%. This value represents a 0% difference when compared to yesterday’s value.

The cryptocurrency market capitalization increased over the course of the day, with the market’s current value being $265.64 billion. This value represents an increase of $11.37 billion when compared to the value it had yesterday.

What happened in the past 24 hours

Bitcoin whales returning to pre-December 2017 pump levels

The number of investors that are holding an immense amount of Bitcoin (otherwise known as Bitcoin whales) is starting to approach the level that the crypto community hadn’t seen since the 2017 levels when Bitcoin rallied to $20,000.

According to Glassnode’s report dating June 15, we can see steady growth in the number of Bitcoin whales (traders holding over 1000 BTC) since April 2019.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization managed to return to its pre-price drop level, reaching back above $9,000. Bitcoin has skipped the $9,120 and $9,251 levels as well, currently stabilizing between $9,251 and $9,580.


Bitcoin’s volume increased during the rally but returned to the previous levels, while the RSI level increased to 50.

Key levels to the upside                    Key levels to the downside

1: $9,580                                           1: $9,120

2: $9,735                                           2: $9,251

3: $9,870                                            3: $8,980

Ethereum

Ethereum also had a correction over the day, bouncing above the $225.4 and trying to consolidate. However, the price action looks like the $225.4 level will be tested to the downside. If it stays strong, traders will have a chance to possibly enter a strong position towards the upside from there.


Ethereum’s volume increased both during the price spike as well as in general. Its RSI level is currently at 43.5.

Key levels to the upside                    Key levels to the downside

1: $240                                               1: $225.4

2: $251.4                                           2: $217.6

                                                           3: $198

Ripple

XRP moved back above the $0.19 during the day, which represents a great bullish sign for it. Unlike with Bitcoin and Ethereum, XRP doesn’t have many support levels below $0.178, and dropping below it would be extremely bearish. However, the recent price increase returned XRP’s price to pre-price drop levels.


XRP’s volume returned to average after a slight increase due to the price increase, while its RSI level came to 50.

Key levels to the upside                    Key levels to the downside

1: $0.2                                              1: $0.19

2: $0.205                                            2: $0.178

3: $0.214                                          

 

Categories
Cryptocurrencies

Electroneum – “The World’s First Common Cryptocurrency”

Some of the buzz around cryptocurrency is for it being a currency that wrests back the power of money from governments and centralized bodies and hands it back to the people. But it’s not as simple as it sounds.

Some of the buzz around cryptocurrency is for it being a currency that wrests back the power of money from governments and centralized bodies and hands it back to the people. But it’s not as simple as it sounds.

Some of the buzz around cryptocurrency is for it being a currency that wrests back the power of money from governments and centralized bodies and hands it back to the people. But it’s not as simple as it sounds.

Satoshi Nakamoto, the creator of Bitcoin, intended for anybody to be able to mine bitcoin from the comfort of their computer. But as the crypto increased in popularity and thousands more flooded the scene, it became harder to do so.

Electroneum is a crypto and blockchain project that hopes to revive the original dream of cryptocurrency – making the revolutionary power of blockchain accessible to anyone anywhere. As long as you have a smartphone and internet connectivity, you can start mining Electroneum coins right in your phone.

This has not gone unnoticed by the “founding father of blockchain” – Scott Stornetta – the most quoted person in Satoshi’s Bitcoin whitepaper. He has described the project as having “a long-term goal that is more than profit-maximizing, but that is actually a collective better” while praising it for being a real solution to “people that have yet to experience the benefits of cryptocurrency.”

This article is an in-depth exploration of this groundbreaking cryptocurrency.

What is Electroneum?

Electroneum is a mobile-oriented cryptocurrency designed for mass adoption, and one of the few to emerge out of the UK. The Electroneum team believes cryptocurrency is a great idea, but the actual acquiring of it is incredibly hard. As such, they want to enable cryptocurrency to be accessible to the average person with as little hassle as possible.

A lot of people want to possess cryptocurrency, but they are not exactly ecstatic about surrendering their personal information to some random websites they know next to nothing about. There’s also the issue of having to link to the bank account and having to shell out extremely high fees for transactions. In short, Electroneum wants to break down the barriers that countless people encounter while trying to access cryptocurrency.

In its words: “Current cryptocurrencies are new (relatively!) and exciting but beyond the reach of your everyday person. To access cryptocurrencies, you have to make or buy a GPU mining rig or send copies of your passport and personal documents to a website that you have probably never heard of. Electroneum has all the great security and anonymity of leading crypto coins, but it’s controlled by a free, easy to install, app, which gives instant access to Electroneum with no card details or ID.”

History of Electroneum

Electroneum was conceived by Richard Ells, whose interest in cryptocurrency started in 2015 while he was building  GPU mining rigs. While Bitcoin was not even yet profitable, Ells knew that the underlying technology was transformative, and he wanted to make it easy for more people to benefit from it.

In August 2015, he enlisted members of his Retortal company to start working on a  cryptocurrency. In July 2017, Ells raised the necessary initial capital to launch the cryptocurrency. These efforts led to the creation of Electroneum Ltd in July 2017. In September 2017, Electroneum conducted an ICO – which drew in 115k+ investors. In the end, the sale raised $40 million worth of Bitcoin and Ethereum.

How Does Electroneum Work?

Private Transactions

Electroneum (ETN) is built off the code for Monero, a privacy-oriented cryptocurrency. Like Monero, Electroneum also has privacy features. One of the criticisms with Bitcoin is its totally transparent transactions whose public addresses can be used to track down the real-life identity of a transacting party. Electroneum solves this with the use of stealth addresses and a one-time public key that prevents any connection between the funds and the wallet.

As well, a one-time private key is created once funds are detected and received by the wallet. The use of stealth addresses means that only the recipient can spend the funds with the single-use private spent key.

Mobile App

The use of a mobile app to get more people to use the currency is one of Electroneum’s biggest differentiator from other cryptocurrencies. The app is currently available for Android and iOS. The app allows you to have access to a wallet where you can store as well as be able to send and receive coins. As a further security measure, you also have the option to generate a paper wallet. At the time of writing, the app has been downloaded 2, 555, 518 times, according to Electroneum’s website.

Mobile Mining

Through the app, users can also generate new Electroneum coins. Once you install the app, it will allow your phone to start simulated mining. And this will happen without your phone overheating or gobbling up huge amounts of data. It also won’t make your phone lose significant battery life. Though the mining will not add new blocks on the blockchain, you’ll still be up for mining rewards for contributing to the computing power of the network.

Online Gaming

Another of Electroneum’s goals is to replace in-game currencies, such as Linden Dollars for the Second Game, Project Entropia Dollars for Entropia Universe, or WoW gold for the World of Warcraft, with ETN.

This would change the gaming landscape in several good ways. For instance, players would have an even better reason to play, thanks to the ability to actually cash out on their completed quests and sold items. Gaming platforms could also gain from the transactions that are taking place in its ecosystem. Also, for gaming companies, using ETN as the in-game currency would be a marketing tool on its own.

Gambling

Again, the Electroneum team hopes to promote the adoption of ETN in gambling. While many sites are accepting Bitcoin and other cryptos, it’s still a complicated and time-consuming process to obtain it. In the majority of countries where gambling takes place, local exchanges charge exorbitant fees. Electroneum wants to make it easy for players and gambling platforms to interact with cryptocurrency in a more frictionless fashion.

The Electroneum Team

The Electroneum team is led by founder and CEO Richard Ells. Else is the founder of two other successful digital companies; SiteWizard and Retortal.

Nick Cook is the head of operations. Cook has more than 20 years working for automobile companies such as Aston Martin, Bentley, and Land Rover.

Barry Last is the head of tech development. He has 15 years of experience as a solutions architect.

The team has also onboarded David Bull, CEO of UNICEF UK. Bull has 32 years in the charity sector. Bull’s experience is fitting with Electroneum’s mission to bring cryptocurrency to the people.

Coin Supply

During the ICO, 4.4 billion of ETN went to investors. Another 20 million went to individuals who shared news about the ICO and explained things to the crypto community. A further 20 million went to the project’s core team. Currently, the coin has a circulating supply of 10 billion out of the maximum supply of 21 billion.

The supply of 21 billion coins was done for psychological reasons. The team figured that it would be more satisfying for users to generate full coins as opposed to decimal points associated with other cryptos such as Bitcoin.

Tokenomics of ETN

As of May 30, 2020, ETN traded at $0.009053, while ranking at #67 and with a market cap of $91, 587, 678. The coin has a 24-hour volume of $1, 015, 774, a circulating supply of 10, 116, 967, 882, a total supply of the same value, and a maximum supply of 21, 000, 000, 000. ETN’s all-time high was $.0 236234 (Nov 02,  2017) while it’s all-time low was 0.001428 (March 13, 2020).

Where to Buy and Store Electroneum

If mining the coin is not exactly your speed, you can grab it from an exchange. Some of the popular exchanges offering ETN include TraderONE, KuCoin, Liquid, Coin Bene, Biki, Huobi, SistemKoin, HitBtc, bitbns, Coin Deal, Trade Ogre, Simple Swap, and more.

For storage, Electroneum strongly recommends keeping your ETN in its app wallet or its generatable paper wallet. At this time, the crypto is most compatible with user favorites Trezor and Ledger.

Final Words

Electroneum is a bold leap towards mass accessibility of cryptocurrencies. It’s truly a way for more people to access, interact, and benefit from the technology – and all in a safe and hassle-free way. People who are fans of blockchain and crypto but feel it’s too complicated or not for them can start seeing it in a better way. Electroneum is an exciting and promising project and one that the crypto community will be watching closely.

Categories
Crypto Daily Topic

How Blockchain is Writing a New Era for Accounting and Auditing Industry

Blockchain is best known as the underlying technology that supports cryptocurrencies. Bitcoin, in particular, is credited as the first cryptocurrency to bring blockchain into the mainstream. But supporting cryptocurrencies is just the tip of the iceberg when it comes to the potential of this disruptive technology.

Blockchain is best known as the underlying technology that supports cryptocurrencies. Bitcoin, in particular, is credited as the first cryptocurrency to bring blockchain into the mainstream. But supporting cryptocurrencies is just the tip of the iceberg when it comes to the potential of this disruptive technology.

Blockchain is best known as the underlying technology that supports cryptocurrencies. Bitcoin, in particular, is credited as the first cryptocurrency to bring blockchain into the mainstream. But supporting cryptocurrencies is just the tip of the iceberg when it comes to the potential of this disruptive technology.

By definition, blockchain technology is an incorruptible distributed ledger that offers a new way of recording, storing, and sharing data. As such, claiming that this technology seamlessly aligns itself with accountancy wouldn’t be much of a stretch.

However, its entry into accounting raises both excitement and concern for the industry’s players. On the one hand, blockchain is set to improve accounting efficiency. On the other hand, accountants and auditors fear that technology might force them to seek new lines of work.

But one thing is certain, blockchain is a game-changer that cannot be ignored, particularly by the accounting industry. This explains why the Big Four accounting firms, KPMG, PriceWaterhouseCoopers, Deloitte, and Ernst and Young, are working towards incorporating blockchain into their operations.

The Current State of Accounting And Blockchain’s Potential 

Much of the accounting work is paper-based. Auditors use these paper trails when reviewing records to ensure data integrity. This method of record-keeping is highly flawed, given the sheer amount of paperwork involved and the time and money resources that go into maintaining these records.

Modern accounting solutions, particularly cloud-based software, are now being employed to help organizations save money and time by introducing efficiency in record keeping. However, these solutions are much like centralized databases, and this renders them vulnerable to cybersecurity threats. Also, being a double-entry system, only the organization and the in-house accountants have direct access to the centralized ledger. This means that regulators and independent public auditors have to request for access to the database, which eventually slows down compliance processes.

Now enters the blockchain, a decentralized ledger system that employs a triple-entry record keeping model. Unlike conventional accounting, blockchain allows accountants to record, retrieve, and avail data to authorized third-parties. The clients, auditors, as well as regulators, will each possess private and public keys to verify their access. With these fundamental properties, blockchain promises the following advantages for accounting firms and auditors;

I) Reduced Fraud 

Data recorded on the blockchain network is said to be immutable, meaning it can’t be corrupted. Once the data is in the chain, smart contracts can be employed to automate accounting functions, reducing the likelihood of human errors.

II) Eases Auditing 

Usually, auditors have to regularly review records to ensure the validity of the data. Depending on the size of the organization and the data, the auditing process can take several days resulting in a company’s downtime.

Using smart contracts, the auditing procedure can be automated, reducing the time an auditor spends verifying records. In fact, auditing and reporting will be done in real-time, unburdening the auditors and CFOs to concentrate on other important administrative operations.

III) Reduces Costs 

Thanks to smart contracts, most of the accounting and auditing processes will be automated. This translates to increased efficiency, saving institutions time and money spent on traditional accounting systems. Also, with cryptographic-hash-based security, organizations will spend less on maintaining the cybersecurity of their cloud-based infrastructure.

V) Improved Regulatory Compliance 

Blockchain solutions for the accounting industry introduce a new concept of triple data entry, whereby the authorized third-parties can access the data. In this case, organizations will be able to share their Know Your Customer (KYC) data with the authorities in regard to the regulations on the same. Additionally, as more blockchain technologies mature, the use of distributed ledger systems might become mandatory in certain financial sectors.

Will Bitcoin Replace Accountants and Auditors? 

Unlike other professionals in other industries, accountants and auditors are pessimistic about the entry of blockchain in the financial sector. Their fear is that this revolutionary technology will replace them in their workplaces, forcing them to seek other lines of work. Luckily, it’s almost impossible to replace human accountants and auditors.

While blockchain will undoubtedly disrupt the financial sector, the role of professional accountants will remain intact as they need to interpret and categorize the data on the blockchain. Most importantly, their expertise will be highly sought after when integrating blockchain into the current accounting infrastructure. Auditors, as well, will still be needed to oversee transactions and track income and outflows.

Although their roles won’t change, there is a need for both accountants and auditors to learn as much as they can about blockchain technology since it’s set to become the standard tool of their everyday job. This way, they position themselves as forward thinkers in the face of a game-changing technology. As a matter of fact, a recent report showed that several universities are now offering blockchain courses to meet the high demand for engineers fluent in this technology. So, it’s not a leap to speculate that future auditors and accountants will basically be blockchain experts trained to identify and report ways in which blockchain can be used in record keeping.

Currently, the biggest challenge hindering the use of blockchain in the accounting industry is that there are few readily available blockchain solutions as yet. This explains why the industry is taking too long to embrace the technology despite the benefits that come with it. Hopefully, this problem will end soon as innovators and investors move in to support this emerging technology. But first, there needs to be preparation procedures to build awareness of what blockchain is all about, and how the technology is evolving.

Takeaway: Embrace and Win 

As various industries continue to warm up to blockchain technology, one thing becomes clear – blockchain isn’t going to disappear any time soon. As it’s application increases, it becomes necessary for industry stakeholders to stay abreast of developments of the technology. Besides, it is common for early adopters of any new technology to benefit more than those who embrace the technology much later.

In this case, organizations and businesses that will deploy blockchain accounting solutions early enough will gain a competitive advantage, which will be manifested in improved customers’ experience. The late adopters will eventually be forced to join the bandwagon lest they risk going out of business.

Categories
Crypto Market Analysis

Daily Crypto Review, Jun 15 – Bitcoin Under $9,000; What Happens Next?

The crypto market has been relatively stable over the weekend only to drop in the past couple of hours. Bitcoin fell under $9,000, which brought other cryptos’ prices down. Bitcoin is currently trading for $8,962, which represents a decrease of 4.47% on the day. Meanwhile, Ethereum lost 6.13% on the day, while XRP lost 4.34%.

The crypto market has been relatively stable over the weekend only to drop in the past couple of hours. Bitcoin fell under $9,000, which brought other cryptos’ prices down. Bitcoin is currently trading for $8,962, which represents a decrease of 4.47% on the day. Meanwhile, Ethereum lost 6.13% on the day, while XRP lost 4.34%.

The crypto market has been relatively stable over the weekend only to drop in the past couple of hours. Bitcoin fell under $9,000, which brought other cryptos’ prices down. Bitcoin is currently trading for $8,962, which represents a decrease of 4.47% on the day. Meanwhile, Ethereum lost 6.13% on the day, while XRP lost 4.34%.

Flexacoin took the position of today’s biggest daily gainer, with gains of 18.57%. Loopring lost 17.68% of its daily value, making it the most prominent daily loser.

Bitcoin’s dominance stayed at the same place since we last reported, with its value currently at 65.52%. This value represents a 0.24% difference to the upside when compared to Friday’s value.

The cryptocurrency market capitalization decreased over the course of the weekend, with the market’s current value being $254.27 billion. This value represents a decrease of $10.24 billion when compared to the value it had on Friday.

What happened in the past 24 hours

Bitcoin transaction fee average decreased by 91%

The average fee for Bitcoin transactions has dropped under the $1 mark, meaning it is back to levels previously seen only before the Bitcoin reward halving.

According to data shown by the crypto analytics website BitInfoCharts, Bitcoin transaction fees decreased by 91% from May 20 until June 14. With the fees going down from $6.65 to $0.56, we can certainly see the improvement in the tx fee department of Bitcoin.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization had a slow weekend of consolidation after the 11 June price drop. While many analysts were suggesting a bull run, Bitcoin dropped in price yet again, this time below $9,000. The move reached $8,900 before stabilizing between $9,980 and $9,120 level.


Bitcoin’s volume seems to be following a pattern of decreasing its volume from day to day until a spike happens, which brings its volume up.

Key levels to the upside                    Key levels to the downside

1: $9,120                                           1: $8,980

2: $9,251                                           2: $8,820

3: $9,580                                            3: $8,650

Ethereum

Ethereum has been pretty stable over the weekend and had low volatility as well as volume. Bitcoin’s move towards the downside dragged it down as well, pulling the price down to $217 levels. The $217.6 level held greatly, stopping the bearish move in its tracks.


Ethereum’s volume increased from almost non-existent to almost the levels of the June 11 price drop.

Key levels to the upside                    Key levels to the downside

1: $225.4                                            1: $217.6

2: $240                                              2: $198

3: $251.4                                            3: $193.6

Ripple

XRP spent the weekend performing slightly worse than the aforementioned Ethereum and Bitcoin, slowly losing value as it went towards the $0.19 level. However, the most recent price drop brought its price to $0.182 levels, where it was stopped by the long-term descending trend line.


XRP’s volume increased slightly as the bearish move occurred, while its RSI level entered the oversold territory.

Key levels to the upside                    Key levels to the downside

1: $0.19                                             1: $0.178

2: $0.2 

3: $0.205                                          

 

Categories
Cryptocurrencies

What is Aelf (ELF) And How Is It Solving Blockchain Scalability Challenge?

Blockchain technology has been around for more than ten years now. It has powered thousands of cryptocurrencies, which have grown into a force to be reckoned with. Today, industries are scrambling for a share of this revolutionary network premised on a belief that blockchain can effect faster, trustless, and fraud-free processes. 

AELF Logo | Forex Academy

Blockchain technology has been around for more than ten years now. It has powered thousands of cryptocurrencies, which have grown into a force to be reckoned with. Today, industries are scrambling for a share of this revolutionary network premised on a belief that blockchain can effect faster, trustless, and fraud-free processes. 

Blockchain technology has been around for more than ten years now. It has powered thousands of cryptocurrencies, which have grown into a force to be reckoned with. Today, industries are scrambling for a share of this revolutionary network premised on a belief that blockchain can effect faster, trustless, and fraud-free processes. 

The integration of blockchain into the business sector has, however, proven an uphill battle. This is due to the issue of scalability that’s inherent in the current iteration of blockchain. 

Take the example of Ethereum and Bitcoin that handle an average of 15 and 7 transactions per second, respectively. Such a scale doesn’t even begin to scratch the surface of the scalability/speed needed for the business world. The other two significant problems with the tech are the possibility for interference while executing smart contracts and the lack of clear protocols for onboarding new technology/updates (due the highly contentious Bitcoin and Bitcoin Cash’s hard forks). 

So where do we go from here? Blockchain is a revolutionary tech that could fundamentally change how we do a lot of things. For industries, it could help optimize processes at an unprecedented level. There needs to be a way to bridge the gap between the tech and the enterprise space. 

Aelf is a project that proposes to help accomplish this. This guide is an exploration of that promise, plus an in-depth look into how it works and everything in between. But first, we look at what Aelf entails.

What is Aelf? 

Initially launched as a testnet in August 2018, Aelf is a blockchain-based, customizable platform operating system (OS) intended to serve as the central hub for blockchains. The Aelf team designed the platform to act as the “Linux system” of blockchains. Since the introduction of Bitcoin, blockchain technology has evolved in profound ways. 

Bitcoin made the concept of a decentralized and peer-to-peer currency mainstream and disrupted the finance industry forever. Then came Ethereum, which expanded on that idea with the introduction of ‘smart contracts’ and ‘decentralized applications (DApps), unleashing the potential of blockchain beyond internet money. Dozens of industries are now experimenting with blockchain and looking to optimize their processes. 

But there remains a chasm between blockchain and the business world that is not easy to bridge. The Aelf team believes that the next face of blockchain should be an integration of these two worlds. For that to happen, however, there has to be an operating system designed for blockchains that will allow them to meet commercial needs. And for that to happen, blockchain needs to deal with three main challenges: 

  • The scalability challenge – the current blockchains are not equipped to handle enterprise-level transactions.
  • Lack of resources segregation – the current blockchains do not segregate resources for various smart contracts, resulting in interference in their execution.
  • Lack of a predefined consensus protocol allowing for the smooth integration of updates or the adoption of new technology

Aelf proposes to solve these problems.

The Aelf Team

Aelf is the brainchild of Ma Haobo, who is also the founder/CEO of blockchain as a service company Hoopox, and the CTO of GemPay and AllCoin. Founder and CEO of TechCrunch with Michael Arrington and FGB Capital Zhou Shouji, serving as advisors. 

It’s worth noting the venture capital support that the project received. Companies like Draper Dragon, Bitmain, Huobi Global, DHVC, Blockchain Ventures, Chain Funder, FGB Capital, and other notable investment firms participated in the ICO. Indeed, the project proved so popular that they had to turn down interested investors after hitting their 55, 000 goal just two weeks after the sale began. This testifies to the potential of Aelf.

How Does Aelf Work?

To address the three problems we previously mentioned, Aelf employs two major innovations: 

  • Sidechains
  • A unique governance system

The platform utilizes sidechain technology to segregate resources among various smart contracts, and a Delegated proof-of-stake consensus algorithm to achieve a more dynamic system of governance. 

Side Chains

Aelf features one main chain and a multitude of side chains to handle various commercial tasks. The main chain is responsible for distributing different tasks to the multilayer side chains, improving efficiency. Sidechains communicate with the main chain via a ‘sidechain index system.’ The index system categorizes the chains as follows: 

  • External blockchain systems to expand the boundary of Aelf, such as Bitcoin and Ethereum 
  • Internal side chains on the Aelf ecosystem, which contribute economically to it using the ELF token

The side chains can branch off further into subchains. Dividing the ecosystem into side chains ensures that downtime or failure in one part does not affect the entire network.

Aelf’s Token Ecosystem

The Aelf token (ELF) incentivizes honest behavior within the ecosystem. All side chains accept ELF as a store of value and as a means of transferring value. Hence, the token can be transferred across any chain that recognizes it is as such. When a side chain receives transaction fees, it has to give a fraction of this revenue to the miners on the main chain.

If the main chain finds that indexing a side chain is not economically favorable, it (main chain) is entitled to terminate the indexing or allow two side chains to offer the same services to compete. Sidechains can also charge fees to their sub-chains. 

What is the Aelf Consensus Protocol?

The running and maintenance of Aelf are more complicated than that of Bitcoin and Ethereum blockchains because Aelf’s involves recording information from various side chains on the main chain. Plus, miners must update information from all the parallel side chains. As such, proof-of-work and basic proof-of-stake consensus algorithms will not suffice. 

Instead, Aelf employs delegated proof-of-stake (DPoS) to run the network more efficiently and ensure the predictability of block formation, which enhances user experience. 

The process is as follows:- holders of the ELF token vote on who will become the mining nodes. Then the elected nodes decide how to distribute mining rewards among the rest of the nodes, plus stakeholders. This equation determines the number of miners: 

Miners = 2N+ 1, with N starting at eight and increasing by one every year. Just like in other blockchains, mining nodes are responsible for relaying and verifying transactions, packaging blocks, and transferring information. 

How are ELF Tokens Distributed?

Aelf held its pre-sale in December 2017. The distribution of the 1 billion tokens was as follows. 

  • 25% (250 million) went to investors
  • 25% went to the Aelf foundation, a 3-year vesting period
  • 16% went to the Aelf team, a 2-year vesting period
  • 12% went to the marketing and airdrops
  • 12% went to mining over a 100-year period 
  • 10% went to advisors and partnerships, a 2-year vesting period

What is ELF’s Market Standing?

As of May 30, 2020, Aelf is trading at $0.092932, while ranking at #105. It has a market cap of $50, 599, 793, a 24-hour volume of $24, 971, 816, a circulating supply of 544, 480, 200, a total supply of 880, 000, 000, and a maximum supply of 1, 000, 000, 000. ELF’s all-time high was $2. 77 (January 07, 2018), and its all-time low was $0.035013 (March 13, 2020). 

Where to buy ELF

ELF is traded on several major exchanges, including Huobi, Binance, Coinswitch, Cointree, KuCoin, YoBitNet, and IDEX. Most of the platforms require you to exchange such cryptos as BTC, ETH, or USDT for ELF. This means you will have first to purchase any of the proxy coins with Fiat.

Aelf also has a reward system known as Candy. Through this system, you get to earn points that you can convert for ELF by carrying out simple tasks such as interacting with Aelf tweets, inviting more users into the Aelf Telegram channel, among other promotional activities. However, a quick check online reveals the Candy program does not seem to be active currently.

Aelf supports a web wallet but recently introduced beta versions of both Android and iOS wallet apps. However, you can use a third-party compatible wallet such as Ledger, KeepKey, Exodus, Coinomi, Trezor, and MyEtherWallet. 

Conclusion

Aelf is a relatively young project, but still holds a ton of potential. The enthusiasm displayed by big-time venture financiers is a testament to how big it could become, and its implications for the blockchain and business spaces. Its strategy to separate resources through side chains and a unique governance model should help propel it to significant heights, both as a blockchain project and as a business model. 

Categories
Crypto Daily Topic

What are oracles in smart contracts

Ethereum brought to life the idea of smart contracts – which were initially proposed by Nick Szabo in the early 90s. After the introduction of blockchain, smart contracts were designed to run on this new technology, where they autonomously and transparently execute a function when specific conditions are met. Thanks to their fundamental trust-less feature, smart contracts have eliminated the need for third-parties, making transactions frictionless and more affordable.

Smart Contracts | Forex Academy

Ethereum brought to life the idea of smart contracts – which were initially proposed by Nick Szabo in the early 90s. After the introduction of blockchain, smart contracts were designed to run on this new technology, where they autonomously and transparently execute a function when specific conditions are met. Thanks to their fundamental trust-less feature, smart contracts have eliminated the need for third-parties, making transactions frictionless and more affordable.

Ethereum brought to life the idea of smart contracts – which were initially proposed by Nick Szabo in the early 90s. After the introduction of blockchain, smart contracts were designed to run on this new technology, where they autonomously and transparently execute a function when specific conditions are met. Thanks to their fundamental trust-less feature, smart contracts have eliminated the need for third-parties, making transactions frictionless and more affordable.

Even though they work automatically, smart contracts have to be fed an input so as to generate the desired output. This is where the concept of oracle comes into play. Essentially, an oracle in this context is a data feeder that provides smart contracts with inputs, consequently determining the output.

How it works

Think of a gamble between two people; Brad and Sam. Suppose they both place their wagers on the outcome of a basketball game. Brad bets on team A while Sam bets on team B. Both Sam and Brad agree on terms of the bet and lock their funds in a smart contract agreement.

For the bet to be settled and the funds released to the winner, the smart contract has to depend on a trusted oracle to feed it the necessary data – in this case, the results of the basketball game. At the end of the game, the oracle queries a reliable data source to find out the winning team, after which the data is relayed to the smart contract. The funds are then sent to either Brad or Sam, depending on the game’s outcome.

The Oracle Problem

From the cited instance above, smart contracts must have access to off-chain data – data that is stored outside the network – for them to be used in real-world cases. To bridge the gap between off-chain data and smart contracts, centralized oracles have been tasked with verifying and authenticating the external data, or rather the input that guides the execution of smart contracts agreements.

However, centralized oracles betray the decentralized tenet of the blockchain revolution. Even worse, they are vulnerable to manipulation, which ends up compromising the entire contract. This problem has incentivized blockchain developers to come up with decentralized oracle solutions in the spirit of maintaining data integrity. As such, decentralized oracles leverage the abilities of blockchain by acting as a layer that queries, authenticates, and protects external data from manipulation before it’s fed as input into a smart contracts agreement.

Types of Blockchain Oracles

Blockchain oracles come in various forms which include:

Software Oracles

Blockchain software oracles are the most common type of data authenticators. They verify information from such online sources as websites, online public databases, or any other data source connected to the internet.

These oracles are considered to be the most powerful type of blockchain oracle due to their inherent interconnectedness with the internet. This is especially true considering the proliferation of the internet in almost all spheres of life.

As such, software oracles are relied on to provide the most up-to-date information to smart contracts. Software oracles are, therefore, best suited for use in verifying asset exchange rates, digital asset prices, and flight information in real-time.

Hardware Oracles

Hardware oracles are tasked with translating real-world data into a digital form that can be interpreted by smart contracts. For this reason, hardware oracles rely on electronic data readers like barcode scanners, that translate information into verified digital values before being loaded as input into a smart contract.

A good example of their use is in the supply chain industry, particularly the tracking of goods. When sending goods to a certain location, they are tagged with an RFID tag whose data is read by a scanner and fed into the smart contract agreement.

Inbound and Outbound Oracles

Inbound oracles transmit information from external sources to a smart contract, whereby upon receiving the data, the contract initiates the path of execution. From the example above on the basketball game, the source of information providing the final results of the game can be classified as an inbound oracle.

Once the information is loaded into the smart contract, the terms of the bet are executed. As such, inbound oracles can be termed as “contract execution triggers.” They can be used in asset trading whereby if an asset reaches a specific price, the contract will then execute the buying or selling of the asset.

Outbound oracles are the direct opposite of inbound oracles in that they relay information to external sources. A good use case scenario of an outbound oracle can be found in a smart lock that is opened by depositing funds. Once it’s verified that the funds have been deposited in the designated address, the smart contract sends this information through an outbound oracle, which then relays the data to an external mechanism that eventually unlocks the smart lock.

Consensus-based Oracles

As the name suggests, consensus-based oracles work by collaborating data from multiple sources. For example, in the basketball game example cited above, a consensus-based oracle would work by verifying the game results from several sources. If all the sources provide the same data, it ascertains the accuracy and, therefore, the terms of the smart contract can be executed.

As far as data integrity is concerned, consensus-based oracles stand as a viable solution to data manipulation. Think of a smart contract agreement that relies on a single data source. Counterparties could alter the information – resulting in unfair settlement of the contract. However, when using consensus-based oracles, any discrepancies in the data due to manipulation can be noted and resolved.

For instance, if the compromised data source provides different information from the other verified sources, the smart contract can be programmed to the agreement based on the data from the other sources whose information is in sync and correct.

Conclusion

Oracles, whether centralized or decentralized, play a vital role in bringing blockchain into the real world. They widen the scope of blockchain’s access to information, bringing its capabilities to various use cases. Decentralized oracles, in particular, safeguard data integrity, eliminating the systematic risk from the blockchain ecosystem. This ensures contracts are executed securely and in a trust-less manner, facilitating the adoption and maturation of blockchain technology.

Categories
Cryptocurrencies

VeChain Blockchain Review: What is VeChain, Where to Buy, and How Does it Work?

Most cryptocurrency projects come with a lot of pomp, revolutionary white papers, and a ton of promises about changing the industry. But if you’ve been in the crypto world long enough, you’ve probably realized that a majority of these crypto projects don’t live long enough to actualize these promises. Most of these fade away because their value proposition was not strong enough to weather the competition. There, nonetheless, have been several crypto projects that dazzled us with their ambition and went on to actualize their product.

VeChain Blockchain review - Forex Academy

Most cryptocurrency projects come with a lot of pomp, revolutionary white papers, and a ton of promises about changing the industry. But if you’ve been in the crypto world long enough, you’ve probably realized that a majority of these crypto projects don’t live long enough to actualize these promises. Most of these fade away because their value proposition was not strong enough to weather the competition. There, nonetheless, have been several crypto projects that dazzled us with their ambition and went on to actualize their product.

Most cryptocurrency projects come with a lot of pomp, revolutionary white papers, and a ton of promises about changing the industry. But if you’ve been in the crypto world long enough, you’ve probably realized that a majority of these crypto projects don’t live long enough to actualize these promises. Most of these fade away because their value proposition was not strong enough to weather the competition. There, nonetheless, have been several crypto projects that dazzled us with their ambition and went on to actualize their product.

VeChain is one such project. VeChain was one of the earliest blockchain industry players. It not only has a substantial customer base but has also inked several lucrative deals with several big-name brands that align with its growth and expansion plans. Headquartered in Singapore, the project has also branched out into China, France, the US, Hong Kong, and Japan.

This VeChain review explores what you need to know about VeChain: its product, team, working model, tokens, and everything in between. 

What’s VeChain?

VeChain is a blockchain platform that seeks to inject more transparency, efficiency, and speed into supply chains. As stated in the VeChain white paper, its goal is “to build a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaborations, and high-speed value transfers.”

VeChain Token (VET) - Forex Academy

The current supply chain data management process is done in silos when various departments are unable to share information for speedy and informed decision-making. Yet, effective data sharing processes are the lifeblood of any business. Impaired information-sharing interferes with innovation, leads to weak collaboration, reduces supply visibility, and undermines a business’s potential.

VeChain believes blockchain can end the “asymmetric information problem and allow ownership of data to return to and empower its owner.” It proposes to enable utter transparency in business processes such as storage, transport, and supply.

For instance, the platform can help to monitor quality, source, mode of transportation, and the authenticity of a bottle of wine right from the manufacturer to the end-user (customer). It can also help automobile owners regain control over their data and use it to negotiate for better and fairer insurance policies.

History of VeChain

VeChain was launched in 2015 by Sunny Lu, former Chief Information Officer of Louis Vuitton China. It began as a subsidiary of Bitse, Shanghai-based blockchain company. The VeChain product is being used across real industries, unlike many crypto projects that are still stuck in the development (beta) phase. From fashion to agriculture, to wine, to food safety, to carbon emission reduction, to governments, VeChain’s blockchain technology has already found multiple use cases.

The VeChain network was formerly hosted on the Ethereum blockchain. In 2018, it launched its mainnet and rebranded into ‘VeChainThor’ (VET) blockchain.

VeChain has notably secured strategic partnerships in a bid to realize its goals of disrupting the current supply chain. VeChain also aspires to be a decentralized applications (DApps) and initial coin offerings (ICO) destination. To achieve this, VeChain has entered into business with several high-profile financial companies like PricewaterhouseCoopers (PwC), Chinese electronics company Jiangsu Electronics, and automobile company Renault.

VeChain’s Team

Sunny Lu is the leader of the team. Lu has been the lead of IT and information system departments for various companies, including Louis Vuitton China.

Other team leaders include Chief Financial Officer Jie Zhang, who has a wealth of history in IT, as well as the founder of Bo Shen, founder of Chinese venture capital company Fenbushi Capital.

VeChain’s VET and VTHO

VeChainThor blockchain features two tokens that are “the blood” of the VeChain body: VET and VTHO. VET is used by companies to facilitate “smart contracts.” It is also available to the public as a store of value and for speculative investment.

Here, owning more VET grants a company more rights on the VET blockchain.

The VTHO token – VeChainThor Energy in full and also known as VeThor Energy, is much like gas for Ethereum or NEO blockchains. It is used to power transactions on VeChain and as payment for running applications.

According to VeChain’s white paper, the two-token system is designed to achieve effective governance and to provide a simplified economic model for developers.

Proof of Authority

The VET blockchain utilizes Proof of Authority to achieve consensus. According to this protocol, voting rights are granted based on one’s stake in VET and disclosure of identity. VET holders without Know Your Customer (KYC) info are, for instance, assigned 20% while holders with KYC with the same amount of tokens are allocated 30% voting rights.

101 ‘Masternodes’ are tasked with the responsibility of reaching a consensus about the validity of transactions within the VeChain blockchain. This mechanism is different from Bitcoin’s blockchain – in which all nodes in the network must approve a transaction before a consensus is achieved.

On VeChain, anonymous nodes cannot take part in transactions’ validation, and disclosure of one’s real identity is a precondition for becoming an Authority Masternode. VeChain states that this system consumes far less energy compared to Blockchain 1.0.

There also are economic masternodes within the VeChain blockchain. These nodes do not approve transactions or blockchain entries. Instead, they serve as a check on the power of voters. Here, power is allocated by granting a specific number of votes to each economic masternode based on the size of VET staked where 10,000 VET = 1 single vote.

This voting rights distribution mechanism centralizes what should be a completely democratic and decentralized system. VeChain acknowledges this, arguing that the protocol is meant to strike a balance between centralization and decentralization.

The VeChain Foundation

Launched in 2017, VeChain Foundation is a centralized organization by the VeChain community that’s responsible for “developing and maintaining the VeChainThor Blockchain, community building, and management, business engagement, technical research, and design.” According to VeChain’s whitepaper, the foundation is responsible for “organizing and representing the entire VeChain community and for setting up the Steering Committee with seven seats, which could expand depending on the stage of development, to lead the core team of VeChain.”

Tokenomics of VET

On May 30, 2020, VeChain was trading at $0.005620, at position #31 and with a market cap of $311, 667, 818. Its 24-hour volume was $186, 888, 250. VET has a circulating supply of 55, 454, 734, 800, with a total supply of 86, 712, 634, 466. The token’s all-time high was $0.019 775 (Sept 4, 2018) while its all-time low was $0. 0.001 678 (March 13, 2020).

Where to Buy VET

You can purchase VET from several exchanges, either directly with Fiat or in exchange for cryptos such as Bitcoin or Ethereum. Some popular exchanges include Gemini, Binance, Coinswitch, Huobi, KuCoin, Changelly, and Bitit.

You can store the VET tokens in the VeChainThor wallet that’s available on iOS and Android app. Other great options include Ledger, Nano, Guarda Wallet, and Atomic Wallet.

Final Words

VeChain is one of the most successful players in the blockchain space. It identified problems in the supply chain and proposed to solve them with blockchain-based solutions. Its partnerships with companies such as PwC, Renault, and Jiangsu will help expand and solidify its client base.

Categories
Crypto Daily Topic

How Can Blockchain Help Combat the Spread of Fake News?

We are currently living in the information age, thanks to the proliferation of IT in all spheres of everyday life. From a simple walk down the street, a visit to the nearby grocery store, to the time you curl up on your couch at the end of a long day, you are bombarded with numerous sources of information. Think of billboards, unending newsfeed on your social media account, and round the clock news from the mainstream media. 

Fake News With BlockchaIn | Forex Academy

We are currently living in the information age, thanks to the proliferation of IT in all spheres of everyday life. From a simple walk down the street, a visit to the nearby grocery store, to the time you curl up on your couch at the end of a long day, you are bombarded with numerous sources of information. Think of billboards, unending newsfeed on your social media account, and round the clock news from the mainstream media. 

We are currently living in the information age, thanks to the proliferation of IT in all spheres of everyday life. From a simple walk down the street, a visit to the nearby grocery store, to the time you curl up on your couch at the end of a long day, you are bombarded with numerous sources of information. Think of billboards, unending newsfeed on your social media account, and round the clock news from the mainstream media. 

While these information sources keep you up to date with the current global trends, the rise of fake news within the broader media industry can negatively shape your perception, prompting you to make a wrong decision. For instance, financial markets’ fake news has the power to sway market trends by influencing investors’ decisions. Judging by this magnitude, it’s easy to see why fake news is not only a threat to businesses but also the democracy of any given country. 

Despite their numerous efforts, big data companies like Google and Facebook have not succeeded in fighting against the spread of fake news. But with the invention of Blockchain as part of the web 3.0 revolution, the media industry has a better chance of countering the propagation of fake news.

How Blockchain can help

There has been much hype around Blockchain with expectations that it will drive new societal and business models. Even though most of the novel applications of this technology are still in the experimental stage, blockchain technology has shown its potential by disrupting the supply chain and financial industry. 

Blockchain | Forex Adacemy - hitesh-choudhary-JNxTZzpHmsI-unsplash

In equal measure, by deploying the fundamental properties of blockchain technology – enforcing trust between parties – it becomes easy to whitelist news and other web content. But first, let’s look at the two main types of mediums of spreading fake news. 

I) Edited pictures and videos

With the plethora of image and video editing software, it is easy for anyone to alter imagery content to suit a particular narrative. See, it’s one thing to color correct or improve an image’s lighting, but it’s another thing to add or remove from an image. Of course, the latter being the most common way in which fake video/imagery is designed. 

II) Fabricated text

Unlike edited images, it’s quite hard to notice whether or not a written text has been fabricated or altered in any way. Most media houses focus their efforts on countering deep fake videos and images since they are easier to notice than fabricated text. The use of artificial intelligence and machine learning that support text writing has led to the creation of unbelievable fake content, further blurring the line between fake and real news. 

Here’s how Blockchain can help mitigate these problems: 

  • Consensus content management 

By leveraging Blockchain’s native consensus algorithm, all content, whether written or image-based, can be stored in a consortium blockchain, reserving all editing rights to trusted authors and news outlets only. More so, the content will be cryptographically signed, rendering it immutable and free of third-party manipulation.  

In this single content management system, every news piece will have a unique digital ID, much like how each block in the chain ledger is unique. Ideally, the ID will appear as a header that is legible to computer devices only and will be used to verify the origin and validity of the content. 

  • Traceability 

In most cases, when a fabricated post or video goes viral, its source or author can’t be traced. By using blockchain-connected applications such as electronic identification and trust services, anyone creating content, posting an ad, or writing a review will be required to prove their identity and credibility to demonstrate that they are who they claim to be.

Electronic signatures and video verification could be used in the process to bring to an end to the many fake accounts and bots creating fake news. This will also increase the accountability of people who share information. 

Once news agencies and editors create and verify their profile, their address is hashed and stored in the Blockchain. This way, it will be easier for content consumers to trace the source of the content and ascertain the credibility of the publisher. 

  • Decentralization

In this context, decentralization implies the ability to involve multiple parties in the news circulation network. Think of a community-owned news agency that runs on a cryptocurrency token to promote transparency. This gives any member of the community power to challenge any source of news that is suspected of delivering fake news. Plus, other members can vote for or against the contested source of news. If found guilty, the source is banned from the community. 

Real-world Applications of Blockchain in Journalism 

There have been several attempts to bring blockchain solutions into journalism. 

News Provenance Project_Forex Academy

Mid last year, the New York Times launched an ambitious blockchain project dubbed The News Provenance Project, which is aimed at combating misinformation in the news media. Designed in collaboration with IBM, the project began with verifying images since they require a simpler form of algorithm to discern whether an image has been modified or not.

Although it’s still in its developmental phase, the project works via proof-of-concept to record metadata of video images published by news outlets. Once the project gains traction, it will certainly propel widespread application of blockchain solutions in the media industry. 

Additionally, Forbes partnership with Civil – a journalism blockchain network – is working to become the first media house to publish content on blockchain technology. The goal of this venture is to move all of Forbes’ future content to the Civil’s proprietary content management system, known as Bertie. If the project succeeds, Forbes’ journalists will be able to upload their content metadata to the content management system, while publishing to their own website at the same time. 

Besides Forbes, Civil has teamed up with several journalists from different media houses to create a decentralized content vetting companies. The project will use Civil’s own digital currency, CVL, which will enable newsrooms to be part of the vetting process. As such, a newsroom can challenge a suspicious publisher by wagering their tokens in order to have their claims evaluated. 

Conclusion

Beyond supporting cryptocurrencies, Blockchain has proven to be also useful in solving real-world problems, as evidenced by its potential to revolutionize multiple industries. With its newfound application in journalism, it’s certain that the technology will not only help solve the fake news menace. It will also address the copyright infringement issues ailing the media industry. 

Categories
Crypto Daily Topic

How Can Capital Markets Benefit From Blockchain Technology?

Ever since cryptocurrency and blockchain first captured mainstream attention, the entire space has been met with a lot of skepticism and hostility. Much of the distrust has come from governments and central bank regulators who are afraid of losing influence over their economies, particularly the financial sector. 

Capital Martket_Forex Academy

Ever since cryptocurrency and blockchain first captured mainstream attention, the entire space has been met with a lot of skepticism and hostility. Much of the distrust has come from governments and central bank regulators who are afraid of losing influence over their economies, particularly the financial sector. 

Ever since cryptocurrency and blockchain first captured mainstream attention, the entire space has been met with a lot of skepticism and hostility. Much of the distrust has come from governments and central bank regulators who are afraid of losing influence over their economies, particularly the financial sector. 

They have, therefore, moved to exert regulations on the sector. Despite the cold reception, blockchain’s numerous benefits and decentralized nature have made it hard to censor for the government.

Capital markets, being a complex system where transactions involve buyers, sellers, brokers, and additional third parties such as liquidity providers, can benefit immensely from the blockchain as a distributed ledger system. Besides securing data, the technology also supports smart contracts that allow for the automation of processes such as payments and moving of collateral. 

Benefits of blockchain solutions in the Capital Markets Trade Cycle 

Capital Markets | Financial Markets - pascal-bernardon-zt0HWquGXlQ-unsplash

Financial institutions are the direct beneficiaries of blockchain solutions in the capital market since they are the most significant players in the industry. At the same time, these benefits have a ripple effect on the entire capital markets ecosystem, and so does the improved efficiency it brings along.

Here are some of the most significant benefits: 

I) Streamlined Trade Settlements

Trade settlement in the current capital markets’ ecosystem is considerably technical, as evidenced by the swap contract transactions between banks in international trader settlements. 

Blockchain-based smart contracts can help to automate trades by releasing settlements only on the condition that the financial details of the banks involved match. Its adoption will help reduce costly errors from the manual processing of settlement instructions. 

In the case of transferring securities from seller to buyer, smart contracts act as a more advanced ‘if-then’ statement from Excel. As such, the transaction will only be completed if certain conditions within the agreed-upon contract are satisfied. Blockchain not only eliminates the broker fees involved in the process but also protects the two parties from fraud risks. Moreover, the sheer accuracy of smart contracts eliminates reconcilement issues that often arise when transactions aren’t properly executed. 

II) Reduce Trade Limit Violations

Trade between financial institutions, also known as swaps, consists of trading limits placed by the government mainly for taxation purposes. A limit can also be placed on trades involving other assets such as derivatives, options, and debt capital markets transactions. 

Violation of these trading limits often results in costly fines, as was the case with JP Morgan Chase Bank in the infamous London whale trade. The bank was fined $920 million, which caused its stock to fall from $45 to $31 before eventually recovering. 

While the bank didn’t intentionally violate the trade limit, lack of effective internal risk and accounting controls allowed traders to take larger trade positions without the consent of senior managers. 

With a distributed ledger and a series of smart contracts, the bank could have maintained compliance with the trade limit laws. Trades over the pre-determined limit could be reversed or blocked if and when they threaten to violate the terms of the smart contracts. The trade infringements could then be detected and reported early enough – saving the bank the subsequent fines and reputation damage. 

III) Credit Risk Management

Assessing a clients’ creditworthiness is essential in ascertaining whether or not they can be approved to trade the capital markets with a financial institution. The same applies to loan issuance processes where an individual’s credit rating determines such aspects as their eligibility and interest rates. 

The use of blockchain in this niche could help create a shared ledger that acts as a central database that is accessible to authorized institutions. Blockchain could facilitate a near real-time communication system, allowing involved parties to take appropriate actions. 

For instance, if the credit rating of a client deteriorated while having an open financial contract with a capital markets trading desk, an instant notification will be communicated between the trading desk team and credit risk officers. As a result, the shared ledger would eliminate the current inefficiencies associated with traditional credit risk assessments – improving the overall business processes. Additionally, the combination of blockchain as an immutable database and machine learning for automated risk assessment would greatly improve the accuracy of credit score ratings. 

IV) Improve Trading Integrity

Trade malpractices, especially in the securities market, can sabotage the growth of the entire market if left unchecked. Currently, the traditional measures put in place by security exchanges to curb illegal trades such as insider trading are not effective and cannot detect these illegal activities before they happen.

The use of blockchain solutions brings in transparency in equity trading. As such, it makes it easier for market regulators to detect irregularities such as artificial pattern trading, thus safeguarding the integrity of the entire equity market. 

V) Maintain KYC and AML Compliance

All financial institutions are required by law to have an in-depth knowledge of their customers’ personal details before offering any services to them. This concept is known as know your customer (KYC) and is closely related to anti-money laundering (AML) – with both designed to curb financial crimes such as tax evasion. 

The cumbersome paperwork and long durations involved in the process could be reduced or eliminated using a decentralized and immutable database. Additionally, this ledger system can help tie investors’ real-world identity to an on-chain wallet address, which in turn can help institutions restrict security/IPO trading to investors who have not been properly vetted. 

  • Asset tokenization

Asset tokenization is the creation of decentralized digital assets that can later be traded. Both tangible assets, such as property, automobiles, and paintings, as well as less tangible assets such as bonds and securities, can be tokenized on a blockchain network to maintain an immutable record of ownership.

Tokenized assets are faster to trade at more affordable transaction costs thanks to the automation process of smart contracts. Moreover, assets in a tokenized form are more accessible and liquid, making it easier for financial service providers to facilitate efficient asset trading. 

Takeaway

It’s evident that blockchain has a lot in store for the capital markets and the financial sector as a whole. Of course, the adoption and implementation of this technology will be a gradual process owing to the intricate nature of capital markets. It will require financial service providers to define the technology’s entry point based on adoption feasibility and cost-benefit analysis. 

Categories
Crypto Market Analysis

Daily Crypto Review, Jun 12 – BTC Plunging To Two-Week Lows; Binance Launching BTC Futures Contracts

The crypto market has plunged over the course of the day, bringing the overall crypto market to a two-week low point. Bitcoin is currently trading for $9,337, which represents a decrease of 5.51% on the day. Meanwhile, Ethereum lost 6% on the day, while XRP lost 5.61%.

The crypto market has plunged over the course of the day, bringing the overall crypto market to a two-week low point. Bitcoin is currently trading for $9,337, which represents a decrease of 5.51% on the day. Meanwhile, Ethereum lost 6% on the day, while XRP lost 5.61%.

The crypto market has plunged over the course of the day, bringing the overall crypto market to a two-week low point. Bitcoin is currently trading for $9,337, which represents a decrease of 5.51% on the day. Meanwhile, Ethereum lost 6% on the day, while XRP lost 5.61%.

DigiByte took the position of today’s biggest daily gainer, with gains of 5.14%. Loopring lost 20.86% of its daily value, making it the most prominent daily loser.

Bitcoin’s dominance stayed at the same place since we last reported, with its value currently at 65.28%. This value represents a 0.6% difference to the downside when compared to yesterday’s value.

The cryptocurrency market capitalization decreased greatly over the course of the day, with the market’s current value being $264.51 billion. This value represents a decrease of $16.72 billion when compared to the value it had yesterday.

What happened in the past 24 hours

500 Crypto Companies in Estonia losing their permits

Estonia is one of the European Union’s most crypto-friendly countries when it comes to regulation. However, due to the $220 billion scandal regarding money laundering through crypto, Estonia started cracking down on many licensed cryptocurrency companies. So far, over 500 companies have lost their permits.

Honorable Mention

Cryptocurrency exchange powerhouse Binance has just launched a new Bitcoin futures product. The launch came through despite institutional investors visibly showing uncertainty about the future of cryptocurrencies.

In a blog post that came directly from Binance on June 11, the company revealed its quarterly futures contracts product is going live. The first contracts will have a settlement due in September.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization has spent the day plunging to its two-week lows, falling as low as $9,070. The $9,251 line has, however, held up, and BTC is now consolidating above it. The downward-facing move should be over for now as RSI stepped into oversold while the volume faded.


Bitcoin’s volume increased multiple-fold over the course of the price dump but has since returned to its average levels.

Key levels to the upside                    Key levels to the downside

1: $9,580                                           1: $9,251

2: $9,735                                           2: $9,120

3: $9,870                                            3: $8,980

Ethereum

Ethereum followed Bitcoin’s initiative to move towards the downside and fell as low as $225. However, the $225.4 support line held up and stopped the move from going any further. Ethereum has recovered slightly and is now trading at a $233 level.


Ethereum’s volume increased drastically during the peak of the move but has since returned to normal. Its RSI level has entered the oversold territory but has (again) returned above it once the pressure faded.

Key levels to the upside                    Key levels to the downside

1: $240                                               1: $225.4

2: $251.4                                           2: $217.6

3: $260                                               3: $198

Ripple

XRP did not stray away from other cryptocurrencies in terms of market direction. The third-largest cryptocurrency by market cap has broken the range it was trading in for a long time as it fell below the $0.2 support level. The downward-facing move reached $0.184 before going up. XRP is still trying to find equilibrium and a place to consolidate at, and it is still uncertain whether that will be above or below the $0.19 level.


Key levels to the upside                    Key levels to the downside

1: $0.2                                               1: $0.19

2: $0.205                                           2: $0.178

 3: $0.214                                          

 

Categories
Cryptocurrencies

What’s Steemit (and Steem) All About?

In this age of ubiquitous internet and social media, we’re constantly sharing ideas and content with our fellow internet users. But has it ever occurred to you that you could be paid for that? Thanks to blockchain technology, it’s now possible. 

In this age of ubiquitous internet and social media, we’re constantly sharing ideas and content with our fellow internet users. But has it ever occurred to you that you could be paid for that? Thanks to blockchain technology, it’s now possible. 

In this age of ubiquitous internet and social media, we’re constantly sharing ideas and content with our fellow internet users. But has it ever occurred to you that you could be paid for that? Thanks to blockchain technology, it’s now possible. 

For long, giant social media companies have profited off user-generated content, while the actual creators of the content, who are the ones that keep the wheels rolling, get little or no share of the pie. And content creators often have to leverage several means to get paid. And emerging tools like ad blockers make it difficult for advertisements to reach targeted audiences. 

Steemit is a platform that’s leveraging blockchain to change the way we view and use social media by rewarding active users with cryptocurrency. It was founded in 2016 by Dan Larimer – who is also the founder of popular blockchain projects BitShares and EOS, together with financial analyst Ned Scott. 

The Steemit model incentivizes both content creators and people who interact with it. This way, an ecosystem is created where content owners are rewarded, as are people who engage with it. 

This piece delves deeper into the Steemit platform as we discover how it works, what is the Steem token, and everything in between. 

What is Steem 

Steem is a token based on the content-focused, blockchain-based and decentralized platform Steemit. Steem enables content makers and publishers to earn money from their content. It works the same as other social content platforms like Reddit and Facebook; only this time, contributors get rewarded for their content, as do individuals who upvote other people’s content.

Owners and shareholders of content platforms such as Reddit and Facebook have made billions of dollars worth of value from user-generated content – with the content makers themselves not gaining at all. Steemit hopes to change this. 

As it says on the white paper:” Steemit aims to support social media and online communities by returning much of its value to the people who provide valuable contributions by rewarding them with cryptocurrency, and through this process create a currency that is able to reach a broad market including people who have yet to participate in any cryptocurrency economy.” 

How Does Steem Work? 

To discover what the Steem token is all about, we first need to understand the Steemit network. 

First, the Steemit network generates and distributes Steem tokens every day. Users can then hodl these tokens, exchange them for other cryptos, or sell them for Fiat currency. Steem has become uber-popular in the crypto and content community since it allows virtually anyone who can curate interesting content to earn money. 

Unlike other cryptocurrencies, Steem does not rely on mining or network consensus for new coins to be released. Instead, the network automatically generates new Steem units and distributes them to users who are actively engaging with the platform. The amount of tokens you get is proportional to the number of upvotes you get and how much you engage with content on the site (upcoming and commenting). 

What Problem is Steem Solving?

Steem is helping to solve a persistent problem in the content world. The content economy is currently incredibly fractured. 

Content makers work hard to curate great content, yet their only hope to earn off of it is via advertisement (which in itself is not guaranteed), affiliate marketing, and other uncertain ways. Other times, content creators have to give up control or direction of their work, which ends up corrupting or watering down the original spirit of the content.

Compounding this issue is the fact that even the current routes for monetization are becoming less effective. Content consumers are not exactly willing and enthusiastic about having to pay for online content. This is due to the huge amount of content that is readily available online. People would rather go elsewhere for content rather than pay for it. 

Consider ad blocking, which has considerably stalled digital advertising. In 2019, for instance, 47% of internet users were using some form of ad blocking, and this figure is set to continue growing. This is something that affects content creators because advertised messages never reach their intended audiences. And for content makers who instead opt to put up a paywall, it mostly just serves to send readers away. 

Steemit aims to change this status of things. On the platform, content creators can post their amazing content and get paid. And content consumers have an incentive to interact with that content. 

Who can Benefit from Steem?

Steem was built to empower regular people from all walks of life by rewarding them for their contribution to online communities. The Steemit platform processes actions (publishing of content, upvoting, commenting, etc.), super-fast, and payouts are made seven days after the fact. Below are the groups of people who can benefit from Steem: 

  • Content creators
  • Content curators
  • Remitters 
  • Market-makers
  • Bloggers
  • Commenters
  • Internet readers
  • Referrers
  • Sign up party hosts

The Three Crypto Tokens of Steemit

Steemit actually has three kinds of tokens. These tokens interact in various ways to bring value to platform users. They include Steem, Steem Power, and Steem Dollars. 

#1. Steem

Steem is the ‘main’ token of the Steemit platform. Network users get paid in Steem for their contribution to the network. Steem can be sold on the open market, just like any other token. It’s not advisable to hang onto Steem for too long. Since the token is released every day, hanging onto it for too long risks dilution.

#2. Steem Power

Steem Power (SP) tokens enable you to have proportionate ownership in the Steemit platform. It’s a measure of how much influence you have as a user. As the network grows, so does your influence. Part of your earnings as a contributor to the network are in Steem Power. The more SP you have, the more your upvotes will be worth. In this way, the Steemit network allows users to build their influence over time. You also receive more rewards when you upvote someone’s work, and they receive a higher payout from your upvotes compared to the upvotes of a relatively new user. 

#3. Steem Dollars 

Steem Dollars are meant to be a stablecoin and are thus pegged to the US dollar. Content makers are paid partly in Steem Power units upon posting the content on the platform. Steem Dollars actually offer three options to users: 

  1. Convert them to Steem and cash out, HODL, or exchange them for other cryptos
  2. Hold onto them and earn 10% interest
  3. Exchange them for Steem Power

How does the Market Look Like?

As of May 30, 2020, Steem was trading at $0.213665, world ranking at #76 in the crypto market. It has a market cap of $78, 497, 841, a 24-hour volume of $3, 476, 286, a circulating supply of 367, 387, 538, and a  total supply of 384, 361, 632. Steem’s all-time high price was $8.57 (Jan 03, 2018), with an all-time low of $0.069192 (March 10, 2017), according to Coinmarketcap. 

Where Can you Buy and Store Steem? 

Apart from being a participant in the steemit platform, you can also acquire Steem tokens from any of several reputable exchanges. Great options include Poloniex, Bittrex, Cointree, Huobi, Bitit, and Coinsquare. 

Storage options for Steem include CLI  (Command Line Interface) wallet, eSteem, a mobile app-based wallet, Vessel – a desktop wallet, as well as a paper wallet. 

Final Thoughts

Steemit is an amazing platform that rightfully rewards content makers for their contribution to the content world. It provides a solution that’s way overdue, and yet timely. By incentivizing content creation, Steemit facilitates a thriving content community that could start changing the way content sharing is done in the future. The platform is one to keep an eye out for. 

Categories
Crypto Daily Topic

How to Find and Profit from Arbitrage Opportunities in Crypto-Trading

Arbitrage trading is a widespread concept in the stock market that entails capitalizing price imbalances between markets. Essentially, an investor buys an asset in one market at a lower price and proceeds to sell it in another market where the same asset is priced slightly higher.

Arbitrage_Forex Academy

Arbitrage trading is a widespread concept in the stock market that entails capitalizing price imbalances between markets. Essentially, an investor buys an asset in one market at a lower price and proceeds to sell it in another market where the same asset is priced slightly higher.

Arbitrage trading is a widespread concept in the stock market that entails capitalizing price imbalances between markets. Essentially, an investor buys an asset in one market at a lower price and proceeds to sell it in another market where the same asset is priced slightly higher.

For instance, say a particular international equity trades at $54 per share in one stock exchange. The same equity trades at $54.20 in another market. A smart investor will speedily bulk-buy the equities at the lower price and sell them at a higher price to realize a tidy profit. 

This trading concept can also be replicated in the cryptocurrency market, especially by day-traders who actively monitor the market trends. 

Cryptocurrency Arbitrage Trading 

Arbitrage trading in the digital currency market is somewhat more efficient than the stock market. This is because there exist numerous marketplaces/crypto exchanges, unlike security trading, which is limited to one major exchange in a given geographical area. Moreover, the crypto market is relatively young, which means that most exchanges work independently and do not share information. This has led to price disparities and profitable arbitrage opportunities. 

There are two major arbitrage trading strategies traders can use to make a profit. 

  • Simple Arbitrage 

Simple arbitrage is the most common strategy that is also used in forex trading and sports betting. In cryptocurrency, the strategy involves buying and selling the same digital asset on different exchanges and pocketing the price difference. 

Now, assume that in one of the exchanges, Bitcoin is priced at $6,000 while trading at $8,500 on the other exchange. To efficiently take advantage of this price difference, you need to open a trading account in both exchanges. Then, you will buy Bitcoin at $6,000, transfer the coins to the other exchange and sell them for $8,500. 

Unfortunately, this approach has two major flaws. First, you’ll have to incur transactional costs associated with transferring cryptos from one exchange to the other. Also, transfers between exchanges can take days. Given the volatility of digital currencies, your profits may diminish during this extended transfer period.

To morph up tangible profits, it is recommended to trade large volumes of crypto. This way, your returns are magnified to cover the transfer and delays. 

  • Triangular arbitrage 

Unlike simple arbitrage, triangular arbitrage is more complex as it involves leveraging the price differences among three different cryptocurrencies within one or multiple exchanges. The strategy can be termed as a cycle where you’ll be exchanging your initial crypto for a second and a third one before finally buying back your initial currency within a limited amount of time. So, the first trading action is required if you were to make any profits. 

Here’s how it is done. There are three different assets on one exchange: BTC, ETH, and LTC. Deposit funds in your trading account and buy BTC as your initial crypto. Next, exchange your BTC for the low-priced LTC. Proceed to sell the LTC for ETH and finally trade the ETH back to BTC. Due to the price differences, your initial BTC holdings will have increased to reasonable amounts, which you can sell for fiat currency.

Even without owning BTC as your initial crypto, you can still make a profit by starting with a low priced crypto. In this case, you already hold some USDT in your account and want to buy 1 Bitcoin, which is currently trading at 6527.06 USDT. Instead of buying Bitcoin directly, you can trade your USDT for another currency, say ETH. Now assume that you end up buying ETH for 302.15 USDT for 1 ETH.

Your last step will be to exchange the ETH for at a rate of 1 ETH = 0.04643 BTC, which means that 1 BTC is trading at 21.5378 ETH. At the end of your trade, you’ll have bought 1 BTC for an equivalent of  6507.64USDT ( 21.5378 * 302.15). As such, you’ll have saved about 19.41 USDT, which wouldn’t be the case if you were to buy BTC directly with your USDT. If you cash out the final holdings immediately, you will make 0.3% profit, without considering the withdrawal fees. 

What to Consider before using Arbitrage Trading strategy 

In theory, cryptocurrency arbitrage sounds pretty straightforward to execute successfully. However, as with all trading strategies,  arbitrage trading isn’t immune to risks. So, here are a couple of things to consider doing to mitigate some of the risks: 

  • Make use of Trading bots.

Although manual arbitrage trading is possible, it’s advisable to make use of trading bots to execute trades. This way, you can be sure that you won’t miss any opportunity, especially considering that cryptocurrencies are highly volatile, and prices may move against you if you are not fast enough to execute orders.

Besides, arbitrage trading requires constant monitoring of market movements, which can be tedious. A trading bot, on the other hand, can be configured to run for long hours and execute trades when an opportunity arises. 

  • Keep an Eye on the Fees

There are many costs associated with arbitrage trading that may eventually eat into your profits. Although some expenses such as transaction and withdrawal fees are unavoidable, it helps to review several exchanges and choose one whose costs are more affordable.

Also, be sure to factor in the taxes based on your jurisdiction. In countries where the law recognizes cryptocurrencies as assets, a trader will have to pay tax on every transaction. In this case, you should limit your transaction or rather use simple arbitrage instead of triangular arbitrage to minimize tax charges. 

  • Limit Your Exposure 

As mentioned earlier, arbitrage trading requires making large volumes of trades to realize reasonable profits, especially when the price difference between assets is narrowly spread. However, it’s prudent to only risk the amount you can afford to lose based on your risk tolerance.  

Conclusion

When done correctly, arbitrage trading is an ideal trading strategy for earning quick profits by leveraging the constant price swings of the cryptocurrency market. But remember to take into account the risks involved and ways to mitigate them to increase your returns. 

Categories
Crypto Market Analysis

Daily Crypto Review, Jun 11 – Chinese Crypto Traders’ Bank Accounts Getting Frozen; BTC Attempting To Break $10,000

The crypto market has spent the day with increased volatility as Bitcoin was trying to pass the $10,000 mark.  While the level got rejected once again, the price increase did happen. Bitcoin is currently trading for $9,941, which represents an increase of 1.69% on the day. Meanwhile, Ethereum gained 2.18% on the day, while XRP gained 0.81%.

The crypto market has spent the day with increased volatility as Bitcoin was trying to pass the $10,000 mark.  While the level got rejected once again, the price increase did happen. Bitcoin is currently trading for $9,941, which represents an increase of 1.69% on the day. Meanwhile, Ethereum gained 2.18% on the day, while XRP gained 0.81%.

The crypto market has spent the day with increased volatility as Bitcoin was trying to pass the $10,000 mark.  While the level got rejected once again, the price increase did happen. Bitcoin is currently trading for $9,941, which represents an increase of 1.69% on the day. Meanwhile, Ethereum gained 2.18% on the day, while XRP gained 0.81%.

Aave took the position of today’s biggest daily gainer, with gains of 20.26%. WAX lost 20.34% of its daily value, making it the most prominent daily loser.

Bitcoin’s dominance increased since we last reported, with its value currently at 65.34%. This value represents a 0.14% difference to the upside when compared to yesterday’s value.

The cryptocurrency market capitalization increased slightly over the course of the day, with the market’s current value being $281.26 billion. This value represents an increase of $3.57 billion when compared to the value it had yesterday.

What happened in the past 24 hours

Are Chinese bank accounts getting frozen by the government?

Almost 4,000 Chinese bank accounts have reportedly been frozen by the local government due to cryptocurrency trading. According to a report published on Monday, the Chinese police force froze the bank accounts of thousands of OTC traders from the Chinese province of Guangdong.

The report stated that the authorities started freezing bank accounts on Thursday. While the law enforcement is claiming that they are freezing only accounts tied to illicit activities, retail investors saw their bank account frozen after buying cryptocurrency on credible crypto exchanges.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization has spent the day preparing for a move towards the upside. The price attempted to break the $10,000 threshold several times, each time being unsuccessful. However, even though the price point got rejected, Bitcoin gained some value and managed to pass $9,870 (which is being tested at the time of writing).


If Bitcoin manages to pass $10,000, it can face resistance above the $10,300 level.

Key levels to the upside                    Key levels to the downside

1: $10,010                                         1: $9,870

2: $10,355                                         2: $9,735

                                                           3: $9,580

Ethereum

Ethereum also made a move towards the upside while attempting to break its resistance level of $251.4. While the break is (so far) unsuccessful, it seems like the second-largest cryptocurrency by market cap has strong support in both the $240 level and the 21-period moving average, which means that the price will not dramatically fall without a fight.


Ethereum’s volume increased drastically during the peak of the move towards the upside but started to fade as the $251.4 level kept resisting.

Key levels to the upside                    Key levels to the downside

1: $251.4                                            1: $240

2: $260                                              2: $225.4

                                                           3: $217.6

Ripple

XRP stayed in its tight range over the course of the day, bound by the $0.2 support and $0.205 resistance level. While its price increased slightly, XRP didn’t make a determined move towards the upside (like Bitcoin and Ethereum did).


While scalp traders might enjoy the ranging moves, a confirmed break to either the upside or downside will benefit any trader as the move would most likely be easy to spot and profit from.

Key levels to the upside                    Key levels to the downside

1: $0.205                                           1: $0.2

2: $0.214                                           2: $0.19

 3: $0.227                                                        

 

Categories
Crypto Videos

Bitcoin vs Fiat currencies – Battle Of The Titans!

https://youtu.be/BKidnucfPKc

https://youtu.be/BKidnucfPKc

 

Bitcoin vs. Fiat currencies – The best investment in the past 1200 years!

Although it was not designed as an investment vehicle, Bitcoin’s value increase has made it the best currency investment in the last 1,200 years.
Its value appreciation over the past 11 years truly sets it apart from all of the world’s fiat currencies.
The first widely accepted Bitcoin commercial transaction happened on May 22, 2010, when Laszlo Hanyecz bought two pizzas for exactly 10,000 BTC. With the pizzas being worth around $30, this puts the transaction value to around $0.003 per BTC at this point.
If we take the price of $0.003 per Bitcoin as a reference point, Bitcoin’s price has appreciated over 320 million percent over the past ten years. Now let’s compare that with other currencies.

The US Dollar

The US dollar has been the only and official currency of the United States ever since the Coinage Act of 1792. In those 228 years, the US dollar managed to devalue quite a bit due to inflation.
According to consumer price index data, we know that $1 in 1792 bought the equivalent of today’s $26.71. In other words, the US dollar has lost over 96% of its value in these 228 years. The vast majority of the value dollar managed to lose actually happened since its decoupling from the gold standard, which happened in 1971.

The Euro

The Euro became an official currency on January 1, 1999, making it just ten years younger than Bitcoin. Therefore, we cannot say that currencies performed worse just because they are significantly older.
The Euro suffers from basically the same design issues as the dollar, the main one being inflation. One Euro today is worth the equivalent of just 0.70 euro in 1999, meaning that this currency has lost thirty percent of its value in only 21 years.

The British Pound

The British Pound is the oldest world currency still in use. It is actually over 1,200 years old. The decimalized pound sterling of today isn’t exactly what the original Pound was, which makes the comparison a bit inaccurate.
The original “pound” from the 8th Century was composed of 240 silver pennies. One Pound was equivalent to 350g, which is worth £156.45 ($200) at the current silver price. If we consider the original silver value rather than the spending power of the currency itself, in 1,200 years, the Pound has arguably appreciated by 15,545%.
Even if we do choose this optimistic way of measuring as our benchmark, the results still can’t even hold a candle to Bitcoin’s performance over the past ten years.

Categories
Crypto Videos

How To Get Money Back on Your Nike purchases! Just Do It!

https://youtu.be/gypXqtlXMpM

https://youtu.be/gypXqtlXMpM

How To Get Money Back on Your Nike Purchases – Crypto Edition


US footwear giant Nike has recently entered a new affiliate partnership that allows its customers to earn up to 3% from their online purchases with crypto.

The partnership with the London-based financial technology firm Plutus​ is now offering rewards through its debit card when its users shop Nike’s online store. When using this card, you can get 3% back in crypto and 9% cash reward from those purchases.

Who can use this card

In order to receive these rewards, customers must be using the Plutus Visa Card while doing their online shopping. As Plutus currently operates only within the United Kingdom and the European Economic Area, only people from these regions would be able to get the card.
The rewards on your purchases are generated in Plutus’s native token called Pluton. At the moment, this token is trading at $1.75, with a current market capitalization of around $1.5 million.

The future

By connecting with Nike to provide crypto rewards, Plutus is making yet another step towards bringing cryptocurrencies into everyday life. The team-up with Nike came months after Plutus introduced a similar feature for the major travel websites – Airbnb and Skyscanner. Unfortunately, the development had to be paused as the coronavirus spread intensified.
As time passes, more companies such as this one will bring crypto into everyday lives of people, making it more accessible and easy to use.

Categories
Crypto Videos

Multi Sig Wallets Now Securing Over 6M In Bitcoin!

https://youtu.be/kWXu9izX3IA

https://youtu.be/kWXu9izX3IA

Multi-Sig Wallets Now Securing Over 6M Bitcoin


Almost one-third of the total Bitcoin supply is now secured with multi-signature wallets.

Multi-sig Wallets

Bitcoin is secured with a combination of a public and a private key. In order to transact by using the Bitcoin network, a user needs to sign each transaction with the aforementioned private key. While this works fine in most cases, there are situations where this arrangement is not ideal.
As an example, if a cryptocurrency exchange founder secures all of the firm’s assets with a private key, only they know, it might not be optimal. If it happens that the founder suddenly dies, gets hacked, or even decides to engage in an ‘exit scam’?

If any of these things were to happen, all the funds would have been lost forever.
In order to alleviate these issues, a Bitcoin soft fork was introduced in 2012. This form enabled the use of multi-signature wallets, which, as the name suggested, allowed Bitcoin to be secured with multiple signatures. In order to use the wallet, a transaction would need to be signed with each of the private keys provided.
To continue our example, the same exchange founder could secure all the firm’s assets with five signatures while requiring at least three signatures for a transaction. The signatures could belong to the company executives, or even trusted third parties.

Adoption

While multi-sig wallets existed since 2012, the feature didn’t get widely adopted since 2015. The reason for that is that most people and companies did not really care about it until Mt. Gox (read as mount gox) got hacked. After this hack, the community recognized the flaws of the decentralized one signature wallet system.

Categories
Crypto Market Analysis

Daily Crypto Review, Jun 10 – Crypto Ransomware Cartels Forming; Market Preparing For A Move

The crypto market has spent the day without much movement and with low volatility.  Bitcoin is currently trading for $9,737, which represents an increase of 0.54% on the day. Meanwhile, Ethereum gained 0.18% on the day, while XRP lost 0.78%.

The crypto market has spent the day without much movement and with low volatility.  Bitcoin is currently trading for $9,737, which represents an increase of 0.54% on the day. Meanwhile, Ethereum gained 0.18% on the day, while XRP lost 0.78%.

The crypto market has spent the day without much movement and with low volatility.  Bitcoin is currently trading for $9,737, which represents an increase of 0.54% on the day. Meanwhile, Ethereum gained 0.18% on the day, while XRP lost 0.78%.

Swiss Borg took the position of today’s biggest daily gainer, with gains of 18.23%. HedgeTrade lost 7.87% of its daily value, making it the most prominent daily loser.

Bitcoin’s dominance decreased since we last reported, with its value currently at 65.20%. This value represents a 0.92% difference to the downside when compared to yesterday’s value.

The cryptocurrency market capitalization increased slightly over the course of the day, with the market’s current value being $277.69 billion. This value represents an increase of $1.61 billion when compared to the value it had yesterday.

What happened in the past 24 hours

Crypto Ransomware Cartel?

Ransomware attacks started happening all over the world recently. They were performed by well-known cybercriminal groups, which are reportedly teaming up and creating cartel-style alliances, all with the idea to pressure their respective victims into paying the ransom requests.

The central feature to show that this is happening is that the gang notes that Ragnar Locker, which is a ransomware group, provided this info, as the title of the blog post they have posted says: “MAZE CARTEL Provided by Ragnar.”

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization has spent the day without much movement. As we noted yesterday, the $9,735 level was breached to the downside but was not confirmed (the lack of confirmation made us think that the move might be corrected soon). Bitcoin regained its price as well as the $9,375 level. There aren’t many opportunities for traders at the moment, but scalp traders might use the fact that Bitcoin is fluctuating around $9,735 and testing support and resistance levels above and below it.


Key levels to the upside                    Key levels to the downside

1: $9,870                                           1: $9,735

2: $10,010                                         2: $9,580

                                                           3: $9,250

Ethereum

Ethereum had no movement throughout the day, as it stayed within a one-dollar range. The second-largest cryptocurrency by market capitalization is secured by the 21-period moving average on its downside, while it has absolutely no volume to even try to test the upper levels.


Ethereum’s volume is extremely low while its RSI level is flat for a couple of days, sitting at 53.

Key levels to the upside                    Key levels to the downside

1: $251.4                                            1: $240

2: $260                                              2: $225.4

                                                           3: $217.6

Ripple

XRP slowly moved towards the $0.2 downside and tested the level after failing to break $0.205 due to the lack of volume. The third-largest cryptocurrency by market cap is in an inverse spot to Ethereum, as both the 21-period and 50-period moving averages are guarding the upside rather than the downside. XRP will require a substantial increase in volume in order to break this range. On top of that, unless it gets “pulled” up by Bitcoin or fundamentals, XRP is most likely to go under $0.2.


Key levels to the upside                    Key levels to the downside

1: $0.205                                           1: $0.2

2: $0.214                                           2: $0.19

 3: $0.227                                                        

 

Categories
Blockchain and DLT

Is it Game-over for Ethereum as we usher in Radix smart contracts?

Imagine a utopian world without lawyers. A world where two people can enter into an agreement with absolutely no worries that one party may breach it and get away with it. A world run by digital contracts written in computer code. Yes, it is possible, and it is already happening, thanks to the invention of smart contracts.

Imagine a utopian world without lawyers. A world where two people can enter into an agreement with absolutely no worries that one party may breach it and get away with it. A world run by digital contracts written in computer code. Yes, it is possible, and it is already happening, thanks to the invention of smart contracts.

Imagine a utopian world without lawyers. A world where two people can enter into an agreement with absolutely no worries that one party may breach it and get away with it. A world run by digital contracts written in computer code. Yes, it is possible, and it is already happening, thanks to the invention of smart contracts.

What is a smart contract?

A smart contract is a piece of technology that may eventually do away with intermediaries. This is because it is a trusted agreement between two people written in computer code. It does not need a third-party to ‘witness’ or even enforce.

The smart contracts you have heard of are probably those that run on Ethereum’s blockchain platform. After all, the platform that was developed especially for developers to write smart contracts on and run on them. While it is not the only decentralized ledger to implement a general-purpose smart contracts feature, it was among the first.

Some experts argue that new decentralized ledger platforms, in particular Radix, have come up with better ways to implement smart contracts. Smart contracts on such platforms offer both the developers and users more than the blockchain platforms have to offer.

History of smart contracts

The idea of a smart contract was first conceptualized by legal scholar and cryptographer Nick Szabo back in 1994. He discovered that a self-executing contract was a possibility if there was a way to implement a decentralized ledger. This idea was way ahead of its time, and the invention of blockchain, the first kind of distributed ledger technology or DLT, is what made its implementation possible. 

A smart contract is an agreement converted into computer code, run and stored on a distributed system, and supervised by a network of computers, also referred to as nodes. Such a contract is ‘smart’ for two main reasons:

☑️It contains ledger feedback that makes it practical for use in transferring funds and receiving products and services.

☑️The contract is trusted by both parties that enter into it. It is therefore executed transparently and without the need for a middleman to oversee it.

The problem with current smart contracts

Smart contracts are one of the most utilized applications of decentralized ledger technology. Bitcoin was the first DLT to support smart contracts. It used them in payment channels, time locks, multisig accounts, and escrows. However, the limitations of the underlying blockchain technology greatly hinder its application.

Ethereum was developed with smart contracts in mind. The developers understood the limitations of the Bitcoin platform and chose to design a new platform that replaces the restrictive Bitcoin’s script with another that is more versatile. This would allow developers to build their own applications that use the platform’s smart contracts capability.

Ethereum’s smart contracts application platform may be the most popular today, but it has glaring weaknesses that it may never be able to overcome. This is because of the limiting factors of the blockchain platform and not the platform design or development. The most notable are:

☑️Blockchain does not scale very well. The concept of a ‘chain of blocks’ is a very powerful one, not only because it guarantees data integrity and necessitates trust between parties in the contract, but also because it has proven to have the capability to disrupt industries.

However, blockchain-based systems are slow and get even more sluggish as the chain grows longer with more blocks of transactions added to the chain.

☑️The consensus protocols used by blockchain systems are at a high risk of centralization.  Blockchains use either Proof-of-Work (PoW) or Proof-of-Stake (PoS) consensus protocols which carry certain degrees of different potential dangers.

It would be justifiable to say that even today, no blockchain system is absolutely decentralized.

☑️Blockchain-based smart contracts place a lot of burden on the developer. Creating an app on the Ethereum platform, for instance, involves creating the basic rules for how the app should behave and implementing its security features in the code. Even building a simple token system on Ethereum is still a very complicated affair.

For a technology that is intended for transactional systems, blockchain-based smart contract platforms are very unappealing to developers.

The future of smart contracts

The world has had a taste of the benefits of smart contracts built and run on decentralized systems, and there is no going back. Since blockchain, and its consensus protocols will never allow for global scalability and 100% decentralization, the world will have to adopt something better for smart contracts. The good news is that it is already here!

The ideal decentralized ledger (DLT) would have all the benefits that blockchain has to offer, and without scalability and consensus problems plaguing blockchain. Radix is such a platform. It is highly efficient and fast, but most importantly, it is scalable.

Radix is designed to have two layers: the Radix Ledger, the base platform that implements DLT, and the Radix Engine, which is the application layer on which transactional rules of the DLT are enforced. The Radix Ledger combines a distributed database ledger (which rakes in all the benefits of blockchain) and a one-of-a-kind consensus called Tempo.

Unlike blockchain, Radix leverages the causal relationships of events in the distributed ledger to create an absolute order of events using logical clocks to partially order events and vector clocks. This design ensures that the distributed system is faster and more efficient than any other DLT in existence. It also detects and prevents protocol violations with greater accuracy.

Why is Radix the future of smart contracts?

Bitcoin was a huge success as digital cash for the simple reason that it was modeled after real-world money, and it enforces its contracts the way cash works. The developers of Radix, not wanting to reinvent the wheel, modeled their revolutionary DLT after real-world business assets and transactions to make it easier for developers to work on, but without compromising its two primary features: trust and security.

The Radix smart contract platform makes it easy for a developer to map out business assets on the already-built Radix components. The platform will offer a wide range of easily customizable components that developers can use to define the assets to meet their applications’ transactional requirements.

Since development is greatly simplified on Radix, the developer will get to invest more effort in modeling the behavior of the business processes to be enforced rather than wasting time creating it from scratch using a different language. This is so because Radix Engine Library comes with a ton of models to create almost any common asset transactional system. It also takes a shorter time and less effort even for new developers to learn and create smart contracts on the platform

Categories
Crypto Daily Topic

How to use Cryptocurrency Trading Pairs as an Investment Strategy

Trading crypto-assets is a tad different from trading such other assets as commodities and stocks. Even though they almost share the same trading platform and trading tools, there is a striking difference in how the operations are executed in each market. 

Trading crypto-assets is a tad different from trading such other assets as commodities and stocks. Even though they almost share the same trading platform and trading tools, there is a striking difference in how the operations are executed in each market. 

Trading crypto-assets is a tad different from trading such other assets as commodities and stocks. Even though they almost share the same trading platform and trading tools, there is a striking difference in how the operations are executed in each market. 

In the securities market, for instance, you can easily buy equities directly for fiat currency through your broker account. While the same can be done in the crypto-market, buying cryptocurrencies directly for fiat currency is limited only to a few cryptos. Unless you plan on limiting your trading to these few digital currencies, you’ll have to exchange one crypto for acquiring another one. 

As such, most digital currencies aren’t traded in isolation – or rather can’t be traded against fiat currency, as is the case with stocks and commodities. This is where the cryptocurrency pair trading concept comes into play. 

How Does Cryptocurrency Pair Trading work? 

Well, pair trading isn’t unique to the cryptocurrency market. It’s a trading strategy borrowed from the stock market, where traders pick two highly correlated equities and go long on one while shorting the other when the pair’s price diverges. 

BTC/ETH crypto pair - Forex Academy

In the crypto-market, pair trading is less complicated. All you have to do is buy crypto using fiat currency. Once you’ve acquired the crypto, you can exchange it for or trade it against other cryptocurrencies. In this case, the cryptocurrency which you bought for fiat currency is referred to as the base currency. In most exchanges, Bitcoin, Ethereum, and Litecoin are the most preferred base currencies as they can easily be bought using domestic currencies. Litecoin is primarily preferred because of its fast transactions and affordable fees. 

Dogecoin is also used as a base currency, especially when trading low market cap coins where it might be burdensome to trade them with large-cap coins like Bitcoin. Dogecoin is also preferred due to its relatively stable value, minimizing the volatility risk. Nonetheless, the rule of thumb when choosing a base currency is to go for one that has the highest number of trading pairs. For this reason, it’s recommended to stick to BTC and ETH as your go-to base currencies since most cryptos have pegged their value on these two currencies. Besides, both BTC and ETH are listed in virtually every exchange. 

Tether (USDT) is also among the most used base currencies. It’s questionable management; notwithstanding, the currency is one of the most stable digital assets since its value is pegged to the United States dollar. This makes Tether not only ideal for pair trading but also a store of value for investors to safeguard funds they don’t want to subject to the crypto market’s aggressive price swings. 

Trading Cryptocurrency Pairs 

Cryptocurrency pairs are usually denoted as one against the other. For instance, ETH/LTC pair means that you’re buying Ethereum and selling Litecoin (LTC) at the same time. Selling the pair means that you are selling Ethereum and buying Litecoin simultaneously. Note that some exchanges may have different cryptocurrency pair listings, so be sure to check if the pair you intend to trade is on offer/listed.  

Additionally, some cryptocurrencies cannot be exchanged directly for others. You may have to execute a few pairs of trades before getting hold of the cryptocurrency you desire. This creates an opportunity for complex arbitrage trading, where you can exchange multiple currencies and pocket price differences. This strategy may, however, be considered too risky, especially for new traders. In such a case, consider using third-party apps for seamless trading across a multitude of crypto pairs. 

Does Liquidity Affect Crypto Pair Trading?

Much like any other crypto trading strategy, liquidity influences crypto pair-trading. Essentially, liquidity means the ability of a currency pair to be sold or bought on demand. A currency on high demand has high liquidity, meaning more opportunities on the market. You can buy/sell in significant amounts without much variances in its exchange rate. Even on a bearish market, crypto on high demand will always have buyers. So, you won’t have to settle for the exchange rate too low to attract buyers. 

Note that not all currency pairs are liquid. Their liquidity depends on whether they are paired with cryptos that are on high demand. This is why BTC, ETH, USDT, and LTC are the ideal base currencies due to their constant demand. It’s also why exchanges with a limited number of trades tie their liquidity to one of these major base currencies.  

Risks of Crypto Pair Trading

The best thing about crypto pair trading is that it is market-neutral or non-directional. This means that by pair trading, you generate profits regardless of whether the market is rallying or correcting. Yet, there are several risks and drawbacks investors need to be aware of when using this strategy, including:

I) Execution risk 

While it’s easy to use the pair trading strategy, you may fail to execute the trade at an optimal price value. This is especially true when trading crypto pairs with a small market cap, whose valuation is more dynamic and unstable. 

II) Correlation Breakdown 

Similar to the stock market, pair trading in the crypto-market has to be between two correlated digital assets. Correlation is usually determined arithmetically on a scale of -1 to +1, whereby +1 indicates a perfect positive correlation, while -1 indicates a perfect negative correlation. If the value is 0, it means there isn’t a correlation between the two assets. 

Considering the crypto market’s volatility, the correlation between assets can unexpectedly break down, and the trade may turn sour as assets move in different directions. 

III) Security Risk 

The security aspect of pair trading has more to do with the trading platform rather than the strategy itself. If you are an avid follower of the digital assets market, you probably know that holding your crypto funds in an exchange is a bad idea. Plus, when using a crypto exchange to execute this trading strategy, you risk losing your assets to hackers.

The safest platform for executing this strategy is a Contract for Difference (CFD) broker platform. With this platform, you enter a trade without owning the underlying asset (cryptocurrency). It’s ideally a bet between the seller and trader to trade the underlying asset at prices stipulated in the contract. With CFD trading, you never have to worry about storing the asset or losing it to hackers.

Conclusion 

Pair trading, being a market-neutral strategy, is well poised for application in the volatile crypto market. On the downside, however, if you are planning on making bank on the next bull run, you should probably avoid pair trading since you won’t earn higher profits in a rally than you would during a bearish market. 

Additionally, the strategy is best suited for intermediate and experienced traders who are already familiar with analyzing prices and market fundamentals. If you are looking to earn regular returns regardless of market trends, you too should consider using the pair trading strategy. Note, however, that even though pair trading is relatively safe, only invest what you can afford to lose and operate within tolerable risk levels. 

Categories
Cryptocurrencies

Cryptocurrency Tax Guide – How to File and Pay Taxes on Crypto Earnings

The longest-held sentiment among crypto enthusiasts is that Bitcoin and other cryptocurrencies will one day be recognized as a medium of exchange by governments. If that were to happen, it would not only accelerate the maturation of the cryptocurrency market but also promote world-wide adoption of virtual currencies. 

Crypto Tax | Finance Academy

The longest-held sentiment among crypto enthusiasts is that Bitcoin and other cryptocurrencies will one day be recognized as a medium of exchange by governments. If that were to happen, it would not only accelerate the maturation of the cryptocurrency market but also promote world-wide adoption of virtual currencies. 

The longest-held sentiment among crypto enthusiasts is that Bitcoin and other cryptocurrencies will one day be recognized as a medium of exchange by governments. If that were to happen, it would not only accelerate the maturation of the cryptocurrency market but also promote world-wide adoption of virtual currencies. 

Unfortunately, tax authorities, particularly Internal Revenue Service (IRS) in the United States and Australian Taxation Office (ATO), regard cryptocurrencies as assets or intangible properties and not a currency since it’s not issued by a central bank. The asset classification of cryptos means that all gains and transactions made using cryptocurrencies are subject to property taxation principles. 

How are Cryptocurrencies Taxed? 

Crypto tax_Forex Academy

To avoid landing in the bad books of the law as a cryptocurrency user/investor, it’s necessary to understand the very instances in which crypto taxation laws take effect. This way, you’ll be in a position to report income and pay the resulting tax correctly. 

For starters, tax authorities have made it mandatory for users to report all their cryptocurrency transactions no matter how negligible they seem. These transactions include the purchase, selling of, investing in, or paying for goods and services using any digital currency.

Merchants or businesses that accept payments in the form of cryptocurrencies are required by the law to report the value of the received cryptos. The value should be expressed as their fiat currency equivalent at the time the payment was received. In these cases, as a cryptocurrency user, you’ll incur capital gains, either long-term or short-term.

For the investors, taxable gains apply if the digital currency’s market value increases from the time of investment up to the time of tax filing. A taxable loss, on the other hand, applies when the fair market value is lower than the adjusted basis of the virtual currency. 

Additionally, cryptocurrency miners are subject to cryptocurrency taxation. For instance, after successfully mining Bitcoins, you ought to include the fair market value of the mined coins in your annual gross income. Wages paid in cryptocurrency are also taxed based on the fair market value on the coins on the date of receipt. 

Note that failing to comply with the tax laws can result in penalties, high interests, or even criminal prosecution. As such, it’s advisable to maintain an accurate record of all your crypto transactions. 

Special Considerations

It is important to acknowledge that in some countries, cryptocurrencies aren’t classified as property. This, however, doesn’t mean that they aren’t taxed. On the contrary, they are subjected to a different type of taxation policies. Let’s take a quick look at how various countries approach digital assets: 

  • The European Union 

A few years ago, the European Court of Justice ruled that Bitcoin can be exchanged without VAT in the European Union. Although this judgment doesn’t mean Bitcoin is recognized as a legal tender in any of the EU countries, it places Bitcoin on a level playing field with other traditional currencies.

While the VAT exemption applies to all countries in the European Union, cryptocurrency transactions are still subject to other forms of taxes, such as capital gains. For instance, in France, crypto-to-crypto transactions aren’t taxed, but when exchanged for fiat currency, the income tax law applies. Also, if a cryptocurrency is used to acquire an asset or service, VAT is applied. 

  • The United Kingdom 

In the UK, the law isn’t quite clear about cryptocurrency taxation. One thing is certain, though, all virtual currencies are treated as foreign currencies, and as such, they’re subject to tax gains and losses. The UK tax authority, Her Majesty’s Revenue, and Customs states that each crypto transaction will be judged based on its own individual facts and circumstances. So, users may be subjected to a variety of tax policies depending on how they use the crypto. 

What to Consider When Planning Your Cryptocurrency Taxes 

As far as crypto taxation is concerned, there are several measures you can take if you hope to remain on the good side of the law. These include:

  • Make use of Tax Tools 

Maintaining cryptocurrency tax compliance requires accurate record-keeping of all transactions. This may not be a big deal to casual traders and investors who engage in minimal crypto transactions. But, for active cryptocurrency traders and miners, it makes sense to invest in software programs to help you track and record the numerous transactions. Some of these tools can calculate your tax liabilities, prepare, and even file your tax returns. 

  • Donate Your Cryptos 

Donating a percentage of your crypto investment reduces your tax liability. Once you have donated your digital assets, the charitable fund sells them to an exchange for fiat cash. Consequently, you enjoy tax relief in that particular year of donation. 

  • Be Mindful of the Holding Period 

Short term gains taxes apply when you hold your cryptocurrency investment for less than a year, while long term gains taxes apply when you hold your investment for more than a year. Depending on your investment goals, these two periods can work for or against you.

Cashing out your cryptos too soon subjects you to frequent short term gain taxes that may eat into your profits. At the same time, holding your investments for too long results in accumulation of long term gain taxes, which might also take a massive chunk off your returns. 

Ideally, you should aim to strike a balance between holding for the short term and the long term. If the earned returns are enough to cover the taxes, then you may consider cashing out. If the returns aren’t enough, then consider holding your investments for a bit longer. 

  • Record Your Loss Too

Just like any other investment, the crypto market doesn’t always offer high returns all-year-round. Luckily, tax authorities are aware of this fact, which is why they allow investors to file tax losses to offset gains. So, be sure to record any losses incurred as a result of market trends.

Conclusion

Cryptocurrency taxation is a rather intricate affair given that the regulatory framework governing the taxation process differs significantly depending on the jurisdiction. As such, consulting a cryptocurrency tax advisor when planning for your taxation is highly recommended. It’s also a good idea to keep tabs on the taxation authority to stay updated on any change of policies or new rules. 

Categories
Crypto Daily Topic

SOLANA COIN: Solving the Scalability Problem with Proof of History

Bitcoin and Ethereum are widely lauded for pioneering the blockchain and smart contract technologies, respectively. While this has paved the way for a litany of similar technologies, the scalability challenge inherent to blockchains remains the most significant hindrance preventing decentralized blockchains from replacing centralized data systems. 

Solana Coin - Forex Academy

Bitcoin and Ethereum are widely lauded for pioneering the blockchain and smart contract technologies, respectively. While this has paved the way for a litany of similar technologies, the scalability challenge inherent to blockchains remains the most significant hindrance preventing decentralized blockchains from replacing centralized data systems. 

Bitcoin and Ethereum are widely lauded for pioneering the blockchain and smart contract technologies, respectively. While this has paved the way for a litany of similar technologies, the scalability challenge inherent to blockchains remains the most significant hindrance preventing decentralized blockchains from replacing centralized data systems. 

There have been a few noteworthy attempts to solve the problem, but often the newfound solutions come at the expense of blockchain’s fundamental features. For example, the EOS blockchain can process more than 1,000 transactions per second, but at the expense of decentralization.

Other blockchain iterations have resorted to using off-chain solutions as a way to reduce the influx of transactions on the main chain. Although they may have made a substantial improvement to the traditional linear blockchain, the complexity of their computations results in inevitable technical challenges. 

Solana is a new blockchain project that aims to solve the scalability dilemma by using a cutting-edge protocol known as Proof of History. The protocol can handle up to 60,000 transactions per second (TPS), which is way more than the 3,000 TPS that Ethereum’s Istanbul fork can process. Before we can examine how the Proof of History protocol solves the scalability problem, let’s first understand how the scalability problem comes about.

Scalability – It’s all About Time 

To develop a high throughput ( transactions per second), the computers in a network need to synchronize the time between transactions. This means that each computer node will need its own ‘internal clock’ to ensure that they all coordinate properly. It’s only when they are in coordination that transactions will take less time to be verified, meaning more transactions can be processed within a short time. 

Blockchain Scalability - Forex Academy

Think of Google Spanner, a scalable database that relies on atomic clocks that are synchronized with each other and the network’s data centers. To maintain this coordination, Google spends an enormous amount of resources to act as the “central clock” from which all nodes take the information. 

While Google Spanner has worked for centralized systems, it can’t work for blockchains since they are trustless systems. Blockchain’s network nodes can’t rely on a “central clock” for consensus timestamps since doing so means sacrificing the decentralized nature of blockchain. 

Besides, as far as increasing the overall throughput is concerned, there is one fairly successful technique. It is referred to as sharding and works by partitioning transactions. Although it works almost perfectly, it introduces vulnerabilities such as double spending and the risk of fraudulent transactions due to a lack of communication between different shards (partitions). 

Solana’s Proof of History protocol seeks to enable time coordination, thereby increasing blockchain throughput while reducing the average cost. 

How Proof of History Works 

Proof of History (PoH) enables network participants to reach a consensus on time. Instead of network nodes confirming transactions, as is the case with Bitcoin and Ethereum, they are only required to agree that one event took place before the subsequent event. 

Let’s say you capture a photo of a popular magazine using your camera. In this case, the photo is proof that the magazine was first published before the photo was taken. Proof of History employs the same concept by encoding the passage of time into the blockchain, creating a record that shows a certain event occurred at a specific time before or after another event. 

To do this, the Proof of History protocol uses a new cryptographic concept known as Verifiable Delay Function (VDF). The function records the passage of time by cryptographically verifying that real-time has passed in the process of generating output. It should be noted that the VDF requires several sequential events to produce a unique and reliable output, which is then made public.

The VDF being a cryptographic hash function means that it’s impossible to predict the final output without executing the whole function from the beginning, using the original input. And after running a hash function from an initial input, the resultant output is used as an input of the next function. This cycle of feeding output as input is then recorded as time passage.

The output of one operation becomes the input of the next operation, in which the current count, status, and output are periodically recorded as a passage of time, creating a sequential thread of time, which we may call History. 

Solana also employs other innovative protocols to achieve superior throughput. These protocols include:

i) Tower Byzantine Fault Tolerance Consensus

In the tower Byzantine Fault Tolerance (Tower BFT), all nodes act in the interest of the network. It works in harmony with Proof of Stake to help determine who can participate as a block validator. As such, the ecosystem created allows participants to stake tokens so they can vote on the validity of a PoH hash function. Bad actors are penalized if they vote in favor of a fork that doesn’t match the PoH records. 

The PoH hash, in this case, can be compared to a block as in a typical blockchain. Once a validator votes for a block, they cannot vote another block in parallel. They must wait for the next block by which the PoH VDF will have verified the passage of time. 

ii) Avalanche

Avalanche is Solana’s solution for reducing congestion in a network. This architecture works by splitting block data into two amongst peers. By sharing only half of the block data, avalanche greatly reduces bandwidth and data usage. 

iii) The Honest Approach

The honest approach aims at maintaining integrity between nodes and verifiers by randomly sending an invalid hash intentionally, through the proof of History. 

Conclusion

Solana’s ambitious goal to solve the scalability problem in blockchain could prove to be what the industry needs as a replacement for traditional data systems. Besides being an effective solution for scalability, the project has managed to remove sharding from its design, making network-wide validation faster and secure while reducing the overhead costs.

Categories
Crypto Market Analysis

Daily Crypto Review, Jun 09 – Bitcoin Gaining 700% Soon? Analyst Estimates BTC At $75,000

The crypto market has spent the day mostly with low volatility, except for the past few hours when the price bounced up and down quickly before returning to its original values.  Bitcoin is currently trading for $9,700, which represents a decrease of 0.56% on the day. Meanwhile, Ethereum lost 0.04% on the day, while XRP gained 0.16%.

The crypto market has spent the day mostly with low volatility, except for the past few hours when the price bounced up and down quickly before returning to its original values.  Bitcoin is currently trading for $9,700, which represents a decrease of 0.56% on the day. Meanwhile, Ethereum lost 0.04% on the day, while XRP gained 0.16%.

The crypto market has spent the day mostly with low volatility, except for the past few hours when the price bounced up and down quickly before returning to its original values.  Bitcoin is currently trading for $9,700, which represents a decrease of 0.56% on the day. Meanwhile, Ethereum lost 0.04% on the day, while XRP gained 0.16%.

Kyber Network took the position of today’s biggest daily gainer, with gains of 9.7%. Divi lost 23.7% of its daily value, making it the most prominent daily loser.

Bitcoin’s dominance increased slightly since we last reported, with its value currently at 66.12%. This value represents a 0.87% difference to the upside when compared to yesterday’s value.

The cryptocurrency market capitalization decreased slightly over the weekend, with the market’s current value being $276.08 billion. This value represents a decrease of $0.24 billion when compared to the value it had yesterday.

What happened in the past 24 hours

Bitcoin soon at $75,000?

Bitcoin analysis from Timothy Peterson (Cane Island Alternative Advisor) shows a strong possibility of BTC going to $75,000. The analysis is based on finding an uncanny similarity to Bitcoin’s chart movement in 2013. Peterson called this similarity “almost perfect.”

Peterson tracked Bitcoin’s price recovery from its 3,600 lows from mid-March, which (as he noted) looks almost exactly like the price action from seven years ago. If the price action from seven years ago can be translated into the future, Bitcoin should move 700% to the upside, giving it a price of around $75,000.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization has spent the day mostly without any large price fluctuations. The market has been slow except for one single candle which tried to break both the upside and downside key levels but failing to do either completely.


Bitcoin’s volume is on the same levels as over the past week, while its RSI level fell to 50. The key level of $9,735 will be moved to the “upside” once the break is confirmed.

Key levels to the upside                    Key levels to the downside

1: $9,870                                           1: $9,735

2: $10,010                                         2: $9,580

                                                           3: $9,250

Ethereum

Ethereum had quite a slow day as well, with its price making a move only in a recent couple of candles. While one candle was strictly bullish, the other one had large wicks to both the upside and downside. The 21-period moving average seems to be holding the price quite well.


Ethereum’s volume increased in the past few candles, while its RSI level came down to 54.

Key levels to the upside                    Key levels to the downside

1: $251.4                                            1: $240

2: $260                                              2: $225.4

                                                           3: $217.6

Ripple

XRP made a move towards the upside and spent the whole day trying to break the $0.205 resistance level. However, the move was unsuccessful, triggering a severe drop, which even broke the $0.2 support level for a few minutes. However, the bulls came back almost instantly and picked up where they left off, threatening the $0.205 resistance level once again.


A break above $0.205 with an increase in volume (or a confirmation of breaking $0.205) could be a good trading opportunity for scalp traders.

Key levels to the upside                    Key levels to the downside

1: $0.205                                           1: $0.2

2: $0.214                                           2: $0.19

 3: $0.227                                                        

 

Categories
Crypto Videos

Regulators vs Bitcoin! The Only Thing Standing In Bitcoin’s Way

 

 

 

Regulators vs. Bitcoin (double standard?)

Bitcoin exchange-traded funds have faced unfair pushback from US regulators, said director and digital asset specialist of VanEck, Gabor Gurbacs.
He claims that there’s a constant double standard against Bitcoin and other digital assets.

SEC Bitcoin ETF denials 

Law or auction gavel and bitcoins on a wooden desk, dark background

A Bitcoin ETF is a financial product that is officially traded on mainstream stock markets. The ETF shares are representing exposure to Bitcoin’s price, and they can be cash-backed or BTC-backed. Trading via ETFs basically allows for Bitcoin exposure through traditional market methods and brokers.
The US Securities and Exchange Commission has denied a massive number of Bitcoin ETFs over the past couple of years. VanEck submitted one of the most notable Bitcoin ETF proposals that ultimately got denied by the SEC after facing many delays.
For the Bitcoin ETF to be approved, regulators say that they need proof that Bitcoin has true price action and not action through market manipulation. However, when comparing Bitcoin’s situation to another available traditional market ETFs, the argument about true price action just doesn’t hold water.

Gurbacs defends Bitcoin price action

Bitcoin holds relatively efficient price discovery, which is even better than certain commodities already on the market, said Gurbacs. He also noted that he revealed proof of such data to the regulators. VanEck, together with its daughter company called MV Index Solutions, developed regulated indices in hopes of appealing to regulators.
Gurbacs added that, while he sees improvement in understanding this technology from the regulators, they have not come around yet. We have seen Wilshire Phoenix facing one of the most recent Bitcoin ETF denials from the regulators in February 2020.

Categories
Crypto Videos

China Embracing Blockchain & New Technology!

https://youtu.be/IewjjVBmw54

https://youtu.be/IewjjVBmw54

China Embracing Blockchain – A City Launching Blockchain-Powered Notary Program

The city of Suzhou wants to implement a program that would use real-time notarial tracing functions, and that would be powered by blockchain. This pilot program would, as reported in the local news, provide a wide range of notary services in the city of Suzhou, China.
The authorities of Suzhou announced that this program will hopefully help millions of citizens with accessing legal and government offices via the internet. The announcement was made on June 5.
The pilot platform will cover personal freedom, health, life, property rights, and more.

All of the materials will be uploaded and available through the cloud. Both audio and video records will be distributed and shared among notaries involved for legal purposes, therefore facilitating the use of real-time tracing functions.
This network will be called “Suzhou Notary Chain,” and it will allow the administrative law enforcement unit to use this system for online notarization as well as for carrying out the entire process through shared files stationed on the cloud platform.
Unlike the highly-conventional method of storing audio and video files only within a law enforcement database, this blockchain-based notary services platform will be used to process everything from recording to distribution. in theory. This should guarantee “easy data storage, non-tampering, high security, as well as traceability.”

China’s blockchain adoption

China continues to take bold steps towards blockchain technology adoption. It is slowly starting to implement related systems within different sectors of the economy, making it one of the leading countries in the sector. However, China’s stance on cryptocurrency is still not as open as people would like.

Categories
Cryptocurrencies

Decentralized Vs. Centralized Exchanges: Which One Should You Trust?

What comes to your mind when you hear the word cryptocurrency? 

Centralised Vs Decentralised_Forex Academy (1) (1)

What comes to your mind when you hear the word cryptocurrency? 

What comes to your mind when you hear the word cryptocurrency? 

Probably it’s the distributed and consensus ledger technology that forms the basis of the whole crypto universe. 

As such, it would seem counter-intuitive if other solutions built around this ledger technology end up diluting its decentralized aspect. Yet, the ratio of centralized exchanges’ trading volume to that of decentralized exchanges suggests that traders prefer the former to the latter. 

Well, there are many halftones between the two concepts – decentralized and centralized – with an arguable belief that not everything is always black and white. Besides, if the power of decentralization was to transverse all aspects of our everyday life, wouldn’t it send us into disarray? So, the real question here should be, to what extent should an exchange be decentralized? 

Decentralized Exchanges Explained 

Much like cryptocurrencies, decentralized crypto exchanges (DEXs), seek to create a trustless environment where buyers and sellers can transact freely. Instead of using matching buy and sell orders in a central book, DEXs utilize smart contracts to link traders directly to each other, eliminating the need for a third-party. In this way, these types of exchanges don’t hold users’ assets or any other personal data. They only serve as a matching and routing layer for trade orders. 

Decentralised_Forex Academy

Generally, there are two types of decentralized crypto exchanges: currency-centric and currency-neutral. Currency-centric exchanges are tied down to one specific blockchain network escrowing its native currency, e.g., Ethereum, Waves, Tron, and any other blockchain that has smart contract capabilities. Currency-neutral exchanges, on the other hand, tend to be more versatile. This means that they can be built on various blockchain networks and are therefore not tied to one specific digital coin ecosystem. 

How Decentralized Exchanges Work

Regardless of their differences, all decentralized exchanges work pretty much the same way. A client brings their funds like ETH, which are stored in the exchange’s network in the form of proxy tokens, in this case, DEX-ETH. Ideally, these tokens serve as collateral for the actual coins stored by the exchange. 

To execute a trade, the client sends an order to sell their tokens in exchange for, say DEX-BTC tokens, which also represent the actual BTC owned by the other party. The smart contract then matches and processes the orders, after which the proxy tokens are exchanged between the two parties. The seller gets the DEX-BTC while the buyer receives the DEX-ETH tokens. After receiving tokens, both parties can convert them to the actual currency, ETH and BTC, using the same trading channel or a different one.

Advantages and disadvantages of Decentralized Exchanges 

Given their architecture, one of the biggest advantages that rises to the forefront is security. The exchanges don’t hold customers’ funds in a central reserve and are thus not vulnerable to hacks or theft. At the same time, decentralized exchanges don’t require a user’s personal information, which also goes a long way in improving security and anonymity in line with the purpose of crypto.

A DEX eliminates the need for a middleman between traders, helping reduce the trading fees. Additionally, traders who like keeping up with crypto market trends, you might consider using decentralized exchanges. This is especially true if you invest in an Initial Coin Offering (ICO). Often, ICOs find their way into DEXs prior to centralized exchanges. 

Despite their numerous advantages, decentralized exchanges have their shortcomings. To start with, they require a higher degree of technical know-how to use efficiently. They also lack essential trading features, which makes them intimidating to new crypto traders. 

Due to the small number of users on DEXs, they have a relatively low trading volume. This translates to limited liquidity in addition to difficulties in finding a matching order since there’s a limited number of traders on the platform.

Decentralized exchanges also suffer from slow transactions. The slow speed of transactions may not be a big deal to small-scale traders, but it can be detrimental to trading giants with high-volume transactions. 

Also, by their very nature, DEXs have no physical location or proof of existence. Therefore it would be difficult to launch a complaint should an issue arise. 

Centralized Exchanges Explained 

Unlike their counterparts, centralized exchanges, also known as CEXs, function similarly to traditional stock exchanges. Essentially, they act as a middle-party between crypto traders and, in exchange, collect a small fee on every successful trade. 

Centralised_orex Academy

These exchanges are structured in such a way that they own their users’ private keys (or wallets), meaning that all transactions have to be executed in the mechanisms laid out by the central authority. Their having access to users’ wallets is a double-edged sword.

First, in case of a lost password, a user can easily recover their funds by simply contacting the exchange’s support team. At the same time, centralized exchanges are prone to hacks and thefts since they store client funds in a centralized database. But even with this downside, CEXs continue to attract a higher number of users than decentralized exchanges. 

Such popularity can be attributed to the seamless fiat to cryptocurrency trades carried out on the centralized exchanges. As such, it is easier for a new crypto trader to enter the market. Moreover, centralized exchanges boast of useful trading features like the stop losses, margin trading, and lending, which are not available on decentralized exchanges. 

Thanks to their high number of users, centralized exchanges have higher liquidity than DEXs. The liquidity is further enhanced by the fact that most CEXs accept fiat currencies and can even be linked to debit cards or bank accounts. 

To Centralize or Not to Centralize? 

Currently, centralized exchanges control the lion’s share of the global cryptocurrency trading volume. Although they deserve it due to the convenience they offer, they have watered down the idea of decentralization in the blockchain and crypto industry. Perhaps as decentralized exchanges continue to grow, there will be a major shift to these platforms since they maintain users’ privacy and security, which is becoming increasingly important as more centralized exchanges fall victim to hacks. 

Categories
Crypto Daily Topic

Blockchain and Big Data: A Match Made in Heaven? 

The rise of the technological revolution has given birth to data-driven businesses. Organizations now collect large volumes of consumers’ data that is analyzed to make strategic business decisions that help drive profitability. The collection of massive consumers’ datasets, which is commonly known as Big Data, has become an established industry on its own with its revenue projected to grow to $103 billion by the year 2027. 

Big Data and Blockchain - Forex Academy (Photo by Science in HD on Unsplash)

The rise of the technological revolution has given birth to data-driven businesses. Organizations now collect large volumes of consumers’ data that is analyzed to make strategic business decisions that help drive profitability. The collection of massive consumers’ datasets, which is commonly known as Big Data, has become an established industry on its own with its revenue projected to grow to $103 billion by the year 2027. 

The rise of the technological revolution has given birth to data-driven businesses. Organizations now collect large volumes of consumers’ data that is analyzed to make strategic business decisions that help drive profitability. The collection of massive consumers’ datasets, which is commonly known as Big Data, has become an established industry on its own with its revenue projected to grow to $103 billion by the year 2027. 

As Big Data continues to become more prevalent in modern-day businesses, it presents a slew of analytical problems to businesses looking to derive valuable insights from the data. Additionally, with the advent of the web of connected devices, consumers are also at the risk of privacy violations due to the increased probability of security breaches. 

But blockchain, a relatively new technology focused on data integrity and management, has the potential to transform the Big Data industry. And although the two technologies, blockchain and Big Data, may seem mutually exclusive on the surface, they complement each other to create powerful solutions for tech-driven enterprises. 

Where can Blockchain Help Big Data

Some of the biggest challenges facing the Big Data industry stem from poor data management. This is despite the numerous efforts by data scientists to come up with different data management systems. Even with the dynamic technological advancements, it’s becoming quite clear that the most modern tech-infrastructure can’t keep up the growing volume of data. 

As a result, poor data management breeds such other problems as data insecurity as well as inaccurate and incomplete records, also known as dirty data. Analysts and organizations have, therefore, been forced to spend a huge deal of their time and resources on data management that, in an ideal situation, would be spent on other core areas of the organization.

But with the advent of blockchain technology, data management is about to get a lot easier for both the data collectors and its consumers.  

By leveraging the fundamental properties of this novel technology, traditional data-processing infrastructure could be upgraded to manage data adequately. Below are some of the potentialities that the integration of Big Data and blockchain offers:

I) Enhance Data Security

The Big data industry struggles with the lack of adequate security to keep from malicious hackers and their advanced tools at bay. The current data management infrastructures cannot, therefore, be relied upon to keep consumers’ data secure. 

As a distributed ledger system, blockchain technology can be integrated into these data management infrastructures to improve their security. The fact that it uses cryptographic principles to record data in the network makes it almost impossible to breach.

In addition to the high-security standards, blockchain solutions for big data eliminate the need for a central infrastructure where data is stored. Instead, data is stored in a distributed network, making it impossible for a single party to generate enough computational power to alter the data in any way. 

II) Ensuring Data Integrity

Besides, drawing insights from the data, data scientists spend a great deal of their time verifying the data in their care and ensuring it is accurate and consistent.

Blockchain can relieve analysts of this tedious task by vetting this data before it’s recorded in the extensive data chain network. It, therefore, solves the persistent cases of inaccurate, repeated, and incomplete data and makes it easier to draw credible insights from the data. While verifying each dataset, blockchain technology also enhances transparency, given that any data recorded within the network can be traced.  

III) Allow Individuals to Monetize their Data

In today’s information age, data is the single most valuable commodity traded by giant tech companies as well as small enterprises. However, the owners of the data rarely benefit from this trade. They are reduced to mere data sources, while enterprises pocket all the profit from selling their data.  

This practice is about to change with the introduction of blockchain to Big Data. The technology is set to democratize data ownership, allowing consumers to regain absolute control of their data. Data monetization can be supported through a token-based economy or discount on products in exchange for personal data. 

Eventually, blockchain will create marketplaces where individuals can trade data directly with businesses. Unlike the current data market, blockchain marketplaces will be more transparent, allowing individuals to see how their data is being used even after the transaction has taken place. 

IV) Manage Data Sharing

As a decentralized ledger system, blockchain allows parties within a network to share data without the security risk factor. As such, it’ll be easier for, say, banks and hospitals to share an individual’s data effectively, improving service delivery. Additionally, the coordinated data sharing eliminates the cumbersome Know Your Customer (KYC) processes, saving institutions money and time. 

Even within an organization, data sharing will be seamless with the use of blockchain solutions that eliminate data silos. As a result, departments within an organization will collaborate efficiently to improve productivity. 

V) Real-Time Data Analysis

Blockchain in payment systems is used to facilitate real-time transactions. Today, there are several fintech innovations that use blockchain to process fast and real-time settlements of huge sums, irrespective of geographical barriers.

In the same way, blockchain-enabled systems can be used by organizations that require real-time analysis of large scale data to improve their services. For instance, if banks were to use these systems, it would enable them to observe changes in data in real-time and make quick decisions, such as block fraudulent transaction attempts or track irregular activities. 

VI) Predictive Analysis

Data stored on a blockchain network can be analyzed to give valuable insights, much like any other form of data. Considering the accuracy and security of blockchain data, the analyses derived from this type of data are more accurate than those from traditional data management systems. 

Additionally, owing to the distributed nature of blockchain and the huge computational power it offers, data analysts, even those in small organizations, can engage in extensive data analysis tasks. By leveraging the accuracy of the data stored therein, the computational power of the blockchain, and its resourcefulness, data analysts can predict and forecast different aspects of the business with utmost accuracy. 

Conclusion

Blockchain and Big Data technologies are set to radically transform the way businesses process and manage large volumes of data. As such, the integration of the two technologies to form a single solution will not only help businesses step up their data infrastructures, but also solve some of the inherent problems that come with managing large databases.

You must, however, appreciate that blockchain solutions in the Big Data industry may not be realized anytime soon due to the growing concern that blockchain application in Big Data is overly expensive. Most tech companies believe it is cheaper to store data on the traditional infrastructures than a blockchain network. This is because blocks can only store and process a limited amount of data, which is smaller compared to the large volumes of data collected per second by current Big Data systems. But blockchain is an ever-evolving technology, and hopefully, it will mature fast enough to address these concerns, allowing for its full implementation in Big Data management. 

Categories
Crypto Market Analysis

Daily Crypto Review, Jun 08 – Cryptos Preparing For The Next Move – What To Expect?

The crypto market has spent this weekend mostly with low volatility and one Bitcoin’s sudden price spike, which triggered the market for a short while.  Bitcoin is currently trading for $9,755, which represents an increase of 0.59% on the day. Meanwhile, Ethereum gained 0.42% on the day, while XRP lost 0.7%.

The crypto market has spent this weekend mostly with low volatility and one Bitcoin’s sudden price spike, which triggered the market for a short while.  Bitcoin is currently trading for $9,755, which represents an increase of 0.59% on the day. Meanwhile, Ethereum gained 0.42% on the day, while XRP lost 0.7%.

The crypto market has spent this weekend mostly with low volatility and one Bitcoin’s sudden price spike, which triggered the market for a short while.  Bitcoin is currently trading for $9,755, which represents an increase of 0.59% on the day. Meanwhile, Ethereum gained 0.42% on the day, while XRP lost 0.7%.

Loopring took the position of today’s biggest daily gainer, with gains of 21.23%. IOST lost 3.13% of its daily value, making it the most prominent daily loser.

Bitcoin’s dominance increased slightly since we last reported, with its value currently at 65.25%. This value represents a 0.11% difference to the upside when compared to Friday’s value.

The cryptocurrency market capitalization decreased slightly over the weekend, with the market’s current value being $276.32 billion. This value represents an increase of $1.33 billion when compared to the value it had on Friday.

What happened in the past 24 hours

Another ransomware attack targeting the aerospace industry

ST Engineering Aerospace’s subsidiary (located in the US) suffered a ransomware attack that extracted somewhere around 1.5TB of sensitive data from their database. This Singapore-based company was, as the report says, attacked by the well-known ransomware organization called Maze.

The report shows that the data stolen by these criminals is related to many things, including contract details with various governments, organizations, as well as airlines across the globe.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization has spent the weekend without much turbulence. The price was on a slow downward-facing path, testing and slowly breaking narrow ranges until bulls seem to have had enough. The price then jumped up from $9,350 to $9,820 before coming back to the levels it is at at the moment. The $9,735 level is currently being tested.


Bitcoin’s volume was decreasing gradually throughout the weekend until the most recent rise, which caused the price to go up.

Key levels to the upside                    Key levels to the downside

1: $9,870                                           1: $9,735

2: $10,010                                         2: $9,580

                                                           3: $9,250

Ethereum

Ethereum’s chart looks similar to Bitcoin’s chart, though the moves to both the upside and downside aren’t as pronounced. The second-largest cryptocurrency by market cap gradually decreased in price until the bulls stepped in and brought the price from $235 to $245. The bottom of this descending mini-trend was seemingly the 50-period moving average.


Ethereum’s volume increased during the upswing but quickly returned to its usual (low) levels.

Key levels to the upside                    Key levels to the downside

1: $251.4                                            1: $240

2: $260                                              2: $225.4

                                                           3: $217.6

Ripple

XRP has spent the weekend trading within a narrow range, bound by $0.2 support and $0.205 resistance level. Both of these levels got tested, but none showed any definitive signs of breaking. XRP’s future price direction will most likely be determined by Bitcoin’s next move.


Key levels to the upside                    Key levels to the downside

1: $0.205                                           1: $0.2

2: $0.214                                           2: $0.19

 3: $0.227                                                        

 

Categories
Crypto Daily Topic

Should you Use a VPN for Cryptocurrency Transactions? 

With the growing number of cybersecurity threats, online privacy is becoming a huge concern for most internet users. As such, privacy-conscious users will likely prefer using cryptocurrencies to fiat or debit cards for financial transactions. 

Crypto_VPN | Forex Acdemy

With the growing number of cybersecurity threats, online privacy is becoming a huge concern for most internet users. As such, privacy-conscious users will likely prefer using cryptocurrencies to fiat or debit cards for financial transactions. 

With the growing number of cybersecurity threats, online privacy is becoming a huge concern for most internet users. As such, privacy-conscious users will likely prefer using cryptocurrencies to fiat or debit cards for financial transactions. 

Sure enough, all financial transactions done using digital currencies are cryptographically secured, protecting user privacy and anonymity. Recipients won’t know your identity or any other personal information unless you buy physical goods and have them shipped to your physical address. 

But the security of your transactions is just one part of the whole online privacy equation. As long as your crypto transactions are done over the internet, you still face the risk of being hacked, falling victim to identity theft, and other cybercrimes. Now, this is where a VPN comes in. 

But first, let’s understand how a VPN works. 

What is a VPN? 

A virtual private network (VPN) service is a programmed security tool that encrypts data being transmitted over the internet. The tool secures your privacy by routing your internet traffic through an encrypted channel, making it hard for third-parties, the government, and even your internet service provider (ISP) to intercept or read your online data.

In other words, the sources and destination of your data are masked when using a VPN. This is especially important if you are using public WiFi to access the internet. At this time, you are highly vulnerable to third-party traffic interceptions who may exploit your personal data. 

Vpn Forex Academy

On a regular network, all your online activities can be traced back to you using your computer/smartphone IP address. The address functions pretty the same way as a home address in that it helps identify your exact location. However, when using a VPN, your real IP address is concealed then you’re assigned a new mock IP address enabling you to bypass geo-restrictions. This means your online activities can’t be traced to your exact physical location. 

Why You Should use a VPN for Cryptocurrency Transactions

Now that we understand how a VPN works, it’s easy to see how it adds an extra layer of security when using cryptocurrencies. Let’s break down why you need to use a VPN when transacting in cryptos over the internet. 

I) Sending Cryptos to other Hot wallets

One of the easiest ways for a hacker to steal your cryptocurrency is by exploiting security loopholes in your hot wallet. Whether you’re sending digital currencies to an exchange site or to another party that you are in business with, your wallet and public key address can easily be identified. With this information, all your transactions can be monitored and even intercepted to gain access to your hot wallet. 

The security loopholes stem from the fact that hot wallets and most cryptocurrency transactions are done over the internet. As such, hackers can leverage their expertise to prey on your activities online and even steal your personal information.

Using a VPN, in this case, can help encrypt your online transactions by encrypting data on both ends. That is to say, transactional data between your device as the sender, and that of the receiver cannot be intercepted in any way. Even when using a public WiFi network to carry out the transaction, your activities are hidden from third-parties’ preying eyes. 

II) Using Decentralised Apps

On the bright side, decentralized apps such as decentralized exchanges and DeFi tools, do not request users to provide identifying Know Your Customer (KYC) information. From a privacy and security front, users are protected from hacks and personal data theft. But even with this security advantage, users’ activities can still be monitored by identifying their unprotected IP address. You can keep your actual location under wraps by leveraging the ability of a VPN to conceal your real IP address. This way, your activities will be completely invisible, making you less of a target of cybercriminals. 

III) Bypassing Internet Firewalls

In the few countries where cryptocurrencies are completely illegal, the government places a geo-restriction, barring any cryptocurrency transactions within the country’s borders. Even those using digital currencies within the country can easily be traced by the government and charged for violating the crypto ban. 

However, using a VPN, your connection is routed to a remote server that virtually puts you in a different geographical location. As such, your new location won’t be under the geo-restriction even when you’re actually located in a country that has imposed the geo-block. This way, you can freely transact in cryptocurrencies without detection. 

In a good number of countries, using cryptocurrencies is legal. But this doesn’t mean that the government is friendly to the idea of blockchain and cryptocurrencies altogether. As such, the regulators have been known to keep tabs or monitor the transactions of those using digital currencies. If you are concerned about your privacy, the idea of the government monitoring your transactions won’t sit right with you. 

Which VPN should you Use

The VPN market is flooded with numerous providers touting their services to be the best in the market. While indeed some offer superior privacy protection, a good number of them should be avoided.  

For starters, steer clear of free VPN services for the simple reason that these providers tend to fund themselves by selling users’ private data to governments and advertisement agencies. On the other hand, paid VPN fund their services and infrastructure from the subscription fees paid by the users and have no reason to sell personal data. 

Additionally, the headquarter of a VPN service determines its commitment to protecting users’ data. A VPN operating from one of the 14-Eyes Alliance countries can be forced by the law to provide a user’s data since these countries often conduct mass surveillance programs. A VPN service provider based in privacy-friendly countries such as the British Virgin Islands, Panama, and Switzerland can be trusted to keep their client’s data private. In fact, these privacy-friendly countries have imposed laws restricting companies from recording any personal data of the users. 

Other useful features you should consider when choosing a VPN include a kill-switch function that terminates your internet connection if you encounter any problem connecting to the VPN. The provider should also have a transparent no-logs policy, meaning that they won’t record any of your online activities. Also, be sure to check if the VPN provider accepts cryptocurrency payments, just to add a little more security and privacy. 

Conclusion 

There’s no doubt that cryptocurrencies are an ideal way to protect your online financial transactions. While they offer a certain degree of anonymity, users can still fall victim to cybersecurity attacks from the fact that they are connected to the internet when transacting cryptos. So, be sure to use a VPN service to keep your transactions under wraps while at the same time protecting your devices from malware. 

Categories
Cryptocurrencies

Nexo Crypto Review: Nexo Tokens, Nexo Lending Platform & How It Works

The advent of blockchain and cryptocurrencies brought with it a ton of possibilities for the global finance industry. Gone are the days when banks and other financial institutions dominated the finance lending space. Thanks to blockchain, decentralized finance (DeFi) is now possible, and virtually anyone from all around the world can take part in the global financial system – and all they need is an internet connection. 

The advent of blockchain and cryptocurrencies brought with it a ton of possibilities for the global finance industry. Gone are the days when banks and other financial institutions dominated the finance lending space. Thanks to blockchain, decentralized finance (DeFi) is now possible, and virtually anyone from all around the world can take part in the global financial system – and all they need is an internet connection. 

The advent of blockchain and cryptocurrencies brought with it a ton of possibilities for the global finance industry. Gone are the days when banks and other financial institutions dominated the finance lending space. Thanks to blockchain, decentralized finance (DeFi) is now possible, and virtually anyone from all around the world can take part in the global financial system – and all they need is an internet connection. 

Nexo is a blockchain-based project that is fulfilling this promise by making it possible for individuals to access such financial services as loans while using their crypto assets as collateral. Individuals from over 200 countries can use their cryptocurrency to receive loans in 45 Fiat currencies – and all this in a transparent, automated, and tax-free process. 

But what is Nexo, and how does this lending platform work? We review this blockchain project to answer these questions and tell you everything else you need to know about the Nexo crypto-lending platform.

What is Nexo? 

Nexo is a blockchain-based lending platform that advances loans and financial assistance to different crypto holders. For the longest time, the crypto market was underexploited, and the only viable method of gaining from one’s crypto assets was by speculating their prices on the market. Nexo, however, seeks to change this by providing crypto investors with a platform where they can issue and borrow crypto loan services while using different crypto assets as collateral. 

Nexo is a product of Credissimo, a Europe-based fintech company launched in 2007. The company is one of the most well established and trusted brands in the online lending space. On their website, they claim to have 73% customer return rate, disbursed over 102, 800 loans in 2019, and maintains a portfolio of 370, 000 unique customers. 

How Does Nexo Work? 

Nexo leverages the blockchain network by providing users with instant lending solutions. With Nexo, crypto holders can get Fiat loans and set up their crypto assets as collateral. It makes it possible to monetize your crypto assets and remain liquid without losing ownership of the investment. The loans are forwarded to the borrower’s bank or debit card.

Nexo How it works - Forex Academy

Nexo is a wholly automated and highly versatile platform with a straightforward lending system.

All you need to do is deposit your crypto assets, access your Fiat loan, and repay it at your convenience. You can repay this loan with fiat, crypto, or a combination of both currencies. There are no minimum repayments with fiat. However, if you are paying back in crypto, the minimum repayment deposits are 0.0025 for Bitcoin, 0.025 for Ether, 32.00 for Ripple, 5.00 for TrueUSD, and 5.00 for USDC. See here the full list for minimum crypto repayments. 

In addition to loans, Nexo also offers its clients with a savings account with an ROI of 8% for stablecoins and fiat currencies. The platform has partnered with BitGo, a digital asset trust to secure all crypto funds. Currently, Nexo supports Bitcoin, Ethereum, Pax Gold, Ripple, Litecoin, Binance, Stellar, NEXO, Bitcoin Cash, EOS, and various stablecoins. 

The Nexo product is available globally – except for a few countries like Bulgaria, Cote d’Ivoire, Myanmar, Iran, Iraq, North Korea, Libya, Syria, and Zimbabwe.

More importantly, Nexo enables you to avoid capital gains taxes even if you live in countries with crypto tax legislation. On their website, Nexo argues that “when you take a crypto loan and spend that loan, you avoid paying any capital gains taxes, which otherwise in many countries you have to pay when you sell your crypto.”

Who Can Use Nexo? 

The NEXO platform is a pretty open platform. Any of the following individuals/entities can utilize NEXO services. 

  • Investors who desire to make profits off their crypto assets, while still maintaining ownership of those assets
  • Businesses of all sizes
  • Crypto miners
  • Hedge funds
  • Pension funds

The Nexo Oracle 

The Nexo Oracle is the technology that drives almost all of Nexo’s functionalities. Some of its core strengths include:

I) Developing loan contracts

The Oracle picks up and automates all the processes after a credit line application is initiated. This includes disbursement of funds, asset monitoring, notifications, and the overall administrative procedures of the loan. 

II)  Developing and maintaining real-time data

The Oracle aggregates data from at least six independent exchanges to perform accurate, real-time data aggregation to minimize the risk for both the platform and users. It also detects market moves and readjusts loan limits accordingly. If an asset increases in price, the Oracle automatically increases the loan limit. 

III) Maintaining an analytics module

The Oracle automatically records and manages all interactions with clients – including loans, repayments, outstanding balances, and accounts. 

IV) Conducting auto-notifications

All of Nexo’s processes are automatically executed, and this includes sending notifications to clients. 

V) Developing prediction modeling and algorithms

Nexo utilizes big-data analysis, automated algorithms, and predictive modeling techniques to realize the smooth running of the system. This helps ensure that information aggregated from outside sources is used appropriately and promptly. 

The Nexo Team

Nexo involves a core team of 14, who hold influential positions in Credissimo. Chief managing partner Kosta Kantchev is the co-founder of both Nexo and Credissimo. 

Antoni Trenchev is the managing partner and also co-founder of Nexo. Trenchev is a former member of the National Assembly of Bulgaria and has a background in e-commerce development, strategy, and processes.

Georgi Shulev is also a managing partner and co-founder of Nexo. Shulev has long-running experience in investment banking and is the co-founder of Consestimate – a financial estimate platform where investors share ideas and forecasts with peers and identify the “fundamental value of public companies.”

The NEXO Token 

Nexo token - Forex Academy

The NEXO token is the native token of the Nexo platform. And the Nexo project creators define the token as a security instrument that’s compliant with the United States Securities and Exchange Commission (SEC) regulations. The Nexo platform incentivizes users to hold the NEXO token by paying out dividends derived from loan returns. Here, 30% of loan returns are channeled to a dividend pool and distributed to the coin holders. 

At the time of writing, the coin is trading at $0.122583, ranking at #81 in the market. It has a market cap of $68,646,212, and a 24-hour volume of $4,089,490. The coin has a circulating supply of 560,000,011, with a total supply of 1,000,000,000 Nexo Tokens. The coin’s all-time high was $0.539466 (May 07, 2018), with an all-time low of 0.043333 (Sep 12, 2018). 

Where to Buy and Store NEXO

You can purchase NEXO from several reputable exchanges, including IDEX, Huobi, Coinswitch, YoBit.Net, Huobi, Binance, HotBit, and Changelly. The majority of these will require you to trade other cryptocurrencies, such as Ethereum and Bitcoin, to get  NEXO. 

NEXO is an Ethereum-based token, meaning it can be stored in any Ethereum-compatible wallet such as MyEtherWallet, MetaMask, Ledger, Trezor, or Atomic Wallet.

Final Thoughts

Nexo brings real value and utility to crypto users and the crypto space. Users can leverage their crypto holdings to gain access to Fiat loans without the plethora of the terms and conditions of traditional finance. Nexo users can also earn passively by keeping their money on Nexo and letting it work for them. It will be interesting to see how Nexo advances as a platform and how its offerings will continue to evolve. 

Categories
Cryptocurrencies

Enjin Coin: How is Blockchain Impacting the Gaming Industry?

Blockchain was ideally developed to facilitate a rather simple purpose: to power a decentralized, peer-to-peer, and ultra-secure digital currency – Bitcoin. In the beginning, no one could have conceived the sheer power that the technology wielded, or predicted the technological revolution it would inspire a decade or two later. From healthcare to the food industry, banking finance to gaming, blockchain is impacting virtually every industry. 

Blockchain was ideally developed to facilitate a rather simple purpose: to power a decentralized, peer-to-peer, and ultra-secure digital currency – Bitcoin. In the beginning, no one could have conceived the sheer power that the technology wielded, or predicted the technological revolution it would inspire a decade or two later. From healthcare to the food industry, banking finance to gaming, blockchain is impacting virtually every industry. 

Blockchain was ideally developed to facilitate a rather simple purpose: to power a decentralized, peer-to-peer, and ultra-secure digital currency – Bitcoin. In the beginning, no one could have conceived the sheer power that the technology wielded, or predicted the technological revolution it would inspire a decade or two later. From healthcare to the food industry, banking finance to gaming, blockchain is impacting virtually every industry. 

Enjin Coin is a cryptocurrency project that is taking advantage of blockchain to offer gamers, developers, publishers, and other stakeholders in the gaming industry a fast and safe solution to manage virtual goods and realize real value.

In this piece, we’ll shine more light on this exciting project and discover its offerings to gaming communities.

What is Enjin Coin? 

Launched in November 2017, Enjin Coin (ENJ) is a cryptocurrency and Ethereum-based blockchain platform that allows game developers to integrate crypto features into games and apps without necessarily having blockchain skills. As stated in the project’s white paper, ENK is “a cryptocurrency (ERC20 Token) and smart contract platform that gives game developers, content creators, and gaming communities the required crypto-backed value and tools for implementing and managing virtual goods.”

Wat is ENJIN coin - Forex Academy

Enjin company was established in 2009 and has, for the past decade, been empowering game lovers to derive more value from the game industry. It is committed to helping game companies increase revenue and maintain a competitive edge in the industry. 

With ENJ, Enjin hopes to be an industry leader in what it sees as an inevitable transition into a blockchain way of doing things in the long run. The Enjin coin platform comprises a suite of software development kits (SDKs) that game developers can use to integrate blockchain-based solutions into gaming. The blockchain initiative will go a long way in reducing the high fees and reducing the lack of transparency that is so rife in the gaming industry.

The coin had its pre-sale in August and September 2017 and raised over $12 million worth of Ether (38,800 ETH). The pre-sale was closely followed by the public sale, in October 2017, where the project raised an additional $23 million. 

How Does Enjin Coin Work?

Enjin Coin is an ERC20 token that runs on the Ethereum blockchain. This makes the platform a cryptocurrency and a smart contract platform. The project is also looking to adopt the Raiden network – Ethereum’s version of the Lightning Network. Its key operational features include:

1. Virtual Goods

Thanks to Enjin Coin, game developers will be able to create tokens for different game communities – using Enjin Coin as the parent currency. This lends the tokens the benefits of crypto (speed, safety, security, and low fees) while maintaining the uniqueness of their respective platforms. These tokens can be exchanged for ENJ at any time. 

Virtual goods can be pretty much anything used in the gaming world, including entire planets, swords, guns, spaceships, cosmetic upgrades, castles, and gaming characters. These virtual goods have real-life value, thanks to Enjin Coin serving as their parent currency. The process by which users create virtual goods via Enjin Coin is referred to as minting. Users can mint goods with whichever quantity of ENJ. The more coins you use to mint an item, the more value it will possess. 

Gamers can acquire these virtual goods either by purchasing or during giveaways, promotions, or rewards. They can also trade/exchange them in a safe, secure, and fraud-free environment. For instance, you can exchange a gun for a planet, sell a spaceship for ENJ, buy a character with ENJ, etc. 

These goods are safely kept in a decentralized and uncensorable environment – and are thus not controlled by anyone. This means you get to own and control your virtual goods, as well as have the ability to prove ownership. This is important, especially if the game or server suffers a malfunction or your account gets hacked.

2. Payment Gateway

The Enjin Coin platform also features a payment gateway that allows users to create customized shopping carts, manage invoices, refunds, emails, and text notifications. It also includes a widget through which you can accept ENJ and any other type of coin payments. Transactions cost is low, and there are no hidden charges.

The platform’s Smart Wallet (more on that below) allows you to execute automatic payments for games from websites that you have listed as ‘Trusted Platforms.’ This feature injects more speed and trust in transactions.

3. Smart Wallet

Enjin Coin’s ‘Smart Wallet’ provides support for a lot of the platform’s functions. First off, it facilitates payments via Trusted Platforms and allows you to exchange currencies and virtual goods outside of your gaming account to any other Smart Wallet user. You can also initiate transactions through the ‘Transaction User,’ as well as create settings and thresholds that can automatically block illegitimate transactions.

Smart Wallet features a “top-of-the-line” security infrastructure complete with a 12-word recovery phrase that enables you to recover your funds in case you forget the password for your Wallet. Additionally, the Wallet has its own proprietary virtual keyboard that further guards against data sniffing. It also deletes any and all sensitive info after transactions, rendering it safe even if it were to be hacked.

4. Efinity

Enjin Coin plans to unveil Efinity – a technology like Bitcoin’s Lightning Network, which features multiple game channels that will allow games to handle infinite volumes of transactions blazingly-fast and with near-zero transaction fees. These transactions will be trustless, blockchain-verified, and support millions of players at any time. Other functionalities will be:

  • Token transfers and approvals
  • Melting tokens
  • Escrow capability
  • Metadata for game items
  • Token bundles
  • Non-fungible tokens
  • Whitelist feature for bound tokens

Can Enjin be Integrated with the Actual Game? 

Yes. The Enjin Content Management System supports plugins that can integrate with the majority of players’ favorite games. Some of the popular games supported today include Dissolution, Forgotten Artifacts, Shield of Shalwend, Age of Rust, Forest Knight, War of Crypto, Battlefield 1, World of Warcraft, Cats in Mech, Afterverse, The Six Dragons, Space Misfits, and Minecraft.

What’s Enjin Coin’s Future Prospects? 

Enjin Coin may be relatively new to the gaming industry, but several factors point to its future success as a cryptocurrency project.

These include:

  • An already existing marketplace trusted by millions of gamers across the globe.
  • ENJ is an ERC-20 token that enjoys multi-exchange and multi-wallet support. Apart from ERC-20, Enjin also supports ERC-1155 smart contracts that enable the tokenization of both fungible and non-fungible gaming industry assets.
  • It has secured a partnership with industry heavyweights such as Samsung, Unity, PC Gamer, Ubisoft, NRG, and other trusted sports brands. 

Tokenomics of Enjin Coin

As of May 26, 2020, Enjin Coin is trading at $0.194120, with a market cap of $159, 133, 893, while ranking at #44 in the overall crypto market, according to Coinmarketcap. It has a 24-hour volume of $36,370, 221 and a total supply of 1, 000, 000, 000 ENJ. The coin’s all-time high was $0.493384 ( Jan 07, 2018), with an all-time low of $0.015620 (Nov 02, 2017).

Where to Buy and Store Enjin Coin

ENJ is listed on several exchanges, including Binance, Coinswitch, Cointree, Changelly, and KuCoin. Popular exchange Coinbase does not list ENJ.

Being an ERC-20 token, you can store ENJ in any Ethereum-compatible wallet like MyEtherWallet, MetaMask, Mist, and Geth. You could also opt for hardware wallets like Ledger Nano and Trezor. 

Final Thoughts

Enjin Coin provides gamers from all around the world with the blockchain benefits of speed, security, and decentralization. It’s helping inject more transparency in the gaming industry and provide gamers with true and absolute ownership of their virtual goods.

The project already has a solid background of Enjin – a company that is trusted by millions of users across the world. Only time will tell if the project can continue with its streak of success.

Categories
Crypto Daily Topic

Cryptocurrency and Crime: How is The International Community Fighting Crypto Crime

Cryptocurrencies were specially designed to give individuals power and control over their finances. But this big vision has been marred by cryptocurrencies’ association with crime. Such a negative perception threatens to derail cryptos from achieving their intended mission as it attracts the attention of governments and other regulatory agencies. 

Blockchain - Forex Academy

Cryptocurrencies were specially designed to give individuals power and control over their finances. But this big vision has been marred by cryptocurrencies’ association with crime. Such a negative perception threatens to derail cryptos from achieving their intended mission as it attracts the attention of governments and other regulatory agencies. 

Cryptocurrencies were specially designed to give individuals power and control over their finances. But this big vision has been marred by cryptocurrencies’ association with crime. Such a negative perception threatens to derail cryptos from achieving their intended mission as it attracts the attention of governments and other regulatory agencies. 

By hiding behind the decentralized, peer-to-peer, and anonymous nature of Blockchain, many cybercriminals have latched on digital currencies to engage in illegal activities online.

In this article, we explore the parallels between blockchain/cryptocurrencies and crime and how to deal with crypto-crime:

What is the Blockchain?

First popularised by Bitcoin creator Satoshi Nakamoto in 2009, Blockchain is a digital ledger that allows for the creation of immutable, peer-to-peer, and distributed records.

Blockchain-Forex academy

One of the critical features of blockchains is ‘decentralization’ – which makes them autonomous and independent of third-party control and intervention. Decentralization makes Blockchain not just uncensorable but also eliminates the costs associated with third-party intermediaries. 

Cryptocurrencies were the first and are still the most popular application of Blockchain. And thanks to the highly decentralized nature of Blockchain, crypto transactions are not regulated or audited by government authorities. Blockchain also employs the use of private and public keys, as opposed to real-world identities. This makes it challenging to identify the true identity of the individual behind a particular crypto transaction. 

It’s this anonymity/pseudonymity that makes cryptocurrencies highly attractive to cybercriminals. 

The Rise of Crypto Crime

The rise of crypto crime can be traced back to the early days of Bitcoin and to the infamous Silk Road saga. The now-defunct dark web marketplace hosted all manner of criminals and encouraged such criminal activities as money laundering, illegal sale of drugs and firearms, contract hacking, sale of other contrabands, with transactions being carried out in Bitcoin.

silk road - forex academy

The site was eventually shut down by the FBI, and its creator – Ross Ulbricht, sentenced to life in prison. Note that while Silk Road employed numerous anonymization techniques, especially the Tor network. But it was the use of Bitcoin for transactions that highlighted how cryptocurrency could be used to fuel illegal online activities. 

Crypto crimes do not always involve a shady website on the dark web. As crypto becomes more popular, the more crypto crime becomes more brazen and high-tech. Today, Most crypto crimes revolve around ICO scams, cryptojacking, ransomware, money laundering, sim-swaps, and Pyramid/Ponzi schemes. While the majority of these incidents prove to be a new normal that the cryptoverse has become used to, others continue to make the headlines.

Crypto Ponzi schemes are best exemplified by the case of OneCoin, a Ponzi scheme that defrauded investors across the globe around $4 billion. The scheme director Dr. Ruja Ignatova is still on the run, but several other conspirators have since been convicted. 

Another high-profile case of SIM swapping involved AT&T and $24 million worth of cryptocurrency. The telecommunications conglomerate is still embroiled in a legal case with Michael Terpin, a Bitcoin investor, who lost $24 million worth of Bitcoin. Terpin said that an AT&T employee at a Connecticut store transferred his phone number to a new SIM card. The action, he says, made it possible for a hacker to transfer crypto funds to a different account.

Not all crypto crimes are cleverly engineered Ponzi schemes or hid behind the veil of technology. Occasionally, you’ll hear of brazen attacks such as the case in Thailand where attackers kidnapped a tourist and forced him to transfer $100, 000 worth of Bitcoin. In Ukraine, the Exmo crypto exchange’s Finance executive was also kidnapped and forced to transfer $1 million in Bitcoin. In New York City, a man lost $1.8 million of Ether after his “friend” organized for him to be kidnapped with the assailant forcing him to reveal his private key. Yet another case occurred in Instanbul when a businessman was taken hostage by armed assailants who forced him to transfer $2.83 million in crypto.

Fighting Back 

The irreversibility and anonymity of blockchain transactions imply that crypto criminals have almost always gotten away with their loot.

But different institutions are continually coming up with mechanisms aimed at pushing back and helping crypto crime victims. And one such company is Chainalysis that has taken up the role of tracking crypto crimes. 

They achieve this by tracking every public address tied to a particular transaction in the Blockchain. Next, they follow the trail of the funds in the particular address and identify whether they’re moving them across other addresses in crypto exchanges or liquidating them for fiat currency. They compare these transactions with the information provided by fraud victims and work with the authorities to track down perpetrators. 

Other companies have created software that gives authorities the upper hand while investigating crypto fraud. This is the approach taken by blockchain company BitFury, whose software enables law enforcement to track down blockchain addresses that have a high inclination for cybercrime. The software is also capable of producing crypto-crime-specific legal reports. 

These companies are fighting back and debunking the myth that crypto crime is permissible just because of the unhackable and anonymous nature of Blockchain.

Renewed Crackdown

As crypto crime persists, countries have put in place stringent measures aimed at clipping its wings. The U.S. is, for instance, planning to crack even harder on the crypto sector. According to the federal budget proposal for 2021, the United States Secret Service will fall back to the jurisdiction of the Treasury. According to the proposal, this move will, among other goals, address the Trump administration’s intention to “address emerging threats such as the use of cryptocurrencies in money laundering and terrorist financing.”

hacking - crypto - crime - forex academy (Photo by Nahel Abdul Hadi on Unsplash)

The proposal states that “technological advancements in recent decades such as cryptocurrencies and the increasing interconnectedness of the international financial market place have resulted in more complex criminal organizations and revealed stronger links between financial and electronic crimes.”

This move is not unprecedented when you consider the comments of high-profile figures with regards to cryptocurrency. Steve Mnuchin, Treasury Secretary, called Bitcoin a “national security issue,” which has been “exploited to support billions of dollars of illicit activity like cybercrime, tax evasion, extortion, ransomware, illicit drugs, and human trafficking.”

Last year, President Trump tweeted that Bitcoin and other cryptocurrencies “can facilitate unlawful behavior including drug trade and other illegal activity…” 

Switzerland also plans to exact stricter measures on the crypto market through the Swiss Financial Market Supervisory Authority (FINMA). The organ plans to inject more transparency into crypto dealings by requiring transactions valued at over 1,000 francs to be accompanied by Know Your Customer (KYC) info. This is a drastic adjustment to an existing regulation that only required KYC requirements for transactions valued over 5000 francs. FINMA argues that this move is set to check the “heightened” risk of crypto-enabled money laundering.

The shift came about a few days after the European Union implemented its fifth Anti-Money Laundering Directive, which requires all crypto companies in Europe to conduct KYC and AML procedures on all their prospective clients. The directive explicitly states that crypto-related businesses must prove that the owners and senior management are “fit and proper.” 

Final Thoughts

While criminals have been inclined to use cryptocurrency due to its ‘untraceable’ nature, this reality is fast changing. Advancing technology plus new ways of looking at blockchain transactions will help crypto shed its reputation as money for criminals. This, combined with austere regulatory policies, will probably be the beginning in restoring the glory that cryptocurrency deserves. 

Categories
Crypto Videos

Swiss Regulators Now Allow Crypto Transactions! Another Big Step Forward!

https://youtu.be/hD7qUrB6-3I

https://youtu.be/hD7qUrB6-3I

Swiss Regulators Allow Crypto Transactions to a Local Bank – Major News

InCore bank became the first Swiss b2b bank that was approved by the financial regulators to operate with cryptocurrencies.
The Swiss Financial Market Supervisory Authority has authorized InCore bank to transact digital assets, therefore allowing customers worldwide to access as well as transact within the bank. The firm now has the ability to allow institutional clients to trade, transfer, and hold digital assets. Regulators have also allowed the bank to develop its own tokenization capabilities.

InCore announces partnership with IT crypto-asset consulting firm

Mark Dambacher, the CEO of InCore Bank, praised the decision that the regulators have made and commented:
“Our customers benefit greatly from the expansion to the new asset class without ever having to invest in infrastructure or new processes themselves. And all this while maintaining the usual security standards.”
The bank has already partnered up with Inacta AG, an independent Swiss-based consulting firm, in order to provide more information as well as crypto-asset management to its customers.

Boosting blockchain adoption within the banking sector

InCore company executives said that the bank plans to expand its strategy regarding blockchain in the coming months. They also have plans to include brokerage, custody, as well as transfer services to security tokens.
This can be a great start to Switzerland’s further adoption of blockchain technology and cryptocurrencies.

Categories
Crypto Market Analysis

Daily Crypto Review, Jun 05 – Hackers Target US Universities After “Kidnapping” a Whole Town; BTC Used as Ransom

The crypto market has spent the day with low volatility as it was trying to consolidate.  Bitcoin is currently trading for $9,778, which represents an increase of 1.31% on the day. Meanwhile, Ethereum gained 0.16% on the day, while XRP lost 0.7%.

The crypto market has spent the day with low volatility as it was trying to consolidate.  Bitcoin is currently trading for $9,778, which represents an increase of 1.31% on the day. Meanwhile, Ethereum gained 0.16% on the day, while XRP lost 0.7%.

The crypto market has spent the day with low volatility as it was trying to consolidate.  Bitcoin is currently trading for $9,778, which represents an increase of 1.31% on the day. Meanwhile, Ethereum gained 0.16% on the day, while XRP lost 0.7%.

Wax took the position of today’s biggest daily gainer, with gains of 62.34%. Zilliqa lost 8.4% of its daily value, making it the most prominent daily loser.

Bitcoin’s dominance increased slightly since we last reported, with its value currently at 65.14%. This value represents a 0.07% difference to the upside when compared to yesterday’s value.

The cryptocurrency market capitalization increased slightly as most cryptos gained some value when compared to yesterday. The market’s current value is $277.65 billion. This value represents an increase of $2.3 billion when compared to the value it had yesterday.

What happened in the past 24 hours

NetWalker attacking US universities with ransomware

A ransomware gang called NetWalker claims to have successfully attacked three large US universities within the last seven days. They say that their latest attack was aimed against the University of California San Francisco, while that they also attacked Michigan State University and Columbia College of Chicago.

NetWalker threatened to leak all the sensitive data they have acquired in less than a week if they don’t receive a crypto payment in Bitcoin. The information came from Michigan State, Columbia College of Chicago, and UCSF themselves.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization has spent the day slowly testing its support and resistance levels. After breaking the $9,735 to the upside but failing to conquer $9,870, Bitcoin started to drop in price and retest $9,735 as a support level. It has held up quite nicely so far, with no indications of BTC falling below it with this volume.


Bitcoin’s volume reduced drastically when compared to the past week, while its RSI is at 58.

Key levels to the upside                    Key levels to the downside

1: $9,870                                           1: $9,735

2: $10,010                                         2: $9,580

                                                           3: $9,250

Ethereum

Ethereum had a great little run towards the upside yesterday, passing the $240 level and trying to consolidate above it. The consolidation has continued since, with Ethereum successfully getting $240 as a support level. The 4-hour 21-period moving average seems to be holding the price above the level as well.


Ethereum’s volume drastically reduced and is almost non-existent, while its RSI level is at 56.

Key levels to the upside                    Key levels to the downside

1: $251.4                                            1: $240

2: $260                                              2: $225.4

                                                           3: $217.6

Ripple

XRP didn’t perform its consolidation, as well as Ethereum, did after a good run towards the upside they had. The third-largest cryptocurrency by market cap fell under the $0.205 level after testing its strength as a support level. However, the current increase in volume indicates that XRP might get above it once again.


XRP’s volume was mostly lower than yesterday, while its RSI level is at 50.

Key levels to the upside                    Key levels to the downside

1: $0.205                                           1: $0.2

2: $0.214                                           2: $0.19

 3: $0.227                                                        

 

Categories
Crypto Daily Topic

The Bart Simpson Phenomenon and Tuesday’s Baffling Bitcoin Drop

On Tuesday, Bitcoin looked like it would finally surge past the hotly-anticipated $10,500. However, the coin ended up plummeting by more than $800 in under only 5 minutes. The sell-off started at 9:45 a.m. ET, when the cryptocurrency was changing hands for$10,137. By 9.49 a.m., the price had dipped to $9,298. At the time of writing, the currency is trading at $9,643.51.

On Tuesday, Bitcoin looked like it would finally surge past the hotly-anticipated $10,500. However, the coin ended up plummeting by more than $800 in under only 5 minutes. The sell-off started at 9:45 a.m. ET, when the cryptocurrency was changing hands for$10,137. By 9.49 a.m., the price had dipped to $9,298. At the time of writing, the currency is trading at $9,643.51.

On Tuesday, Bitcoin looked like it would finally surge past the hotly-anticipated $10,500. However, the coin ended up plummeting by more than $800 in under only 5 minutes. The sell-off started at 9:45 a.m. ET, when the cryptocurrency was changing hands for$10,137. By 9.49 a.m., the price had dipped to $9,298. At the time of writing, the currency is trading at $9,643.51.

Price Manipulation? 

The 4-hour chart, during the period leading up to the drop, as well as the hourly, had formed what’s called the ”Bart Simpson” pattern. This pattern usually indicates probable manipulation caused by whales and institutional players. The pattern occurs when an asset rapidly shoots up or down,  followed by a sideways movement, then a violent move in the opposite direction.

What’s the Bart Simpson Pattern? 

This price action resembles the famous cartoon character Bart Simpson’s head. The name is one of many eccentric memes created by the crypto community. 

The Bart Simpson pattern phenomenon made its debut in 2018 when the Bitcoin market became a bit subdued. Volume and liquidity began to decrease due to declining interest in the cryptocurrency. 

Due to the current uncertain Bitcoin market (more on that later), the low liquidity and low volume trading environment create the perfect recipe for Bart Simpson charts to start appearing again. 

The Bart patterns also sometimes appear in the inverse, with the zig-zag formation occurring at the bottom of a sudden price move before reversing back upward.

Bart Simpson patterns are somehow unique to the Bitcoin and crypto market. And although hilarious, they are a bad sign for the market. Ordinary investors and traders mostly get burned, while big players such as whales and institutional investors go home with huge profits.

What leads to the Bart Simpson Pattern?

There’s consensus in some quarters that the pattern occurs due to a lack of liquidity in the Bitcoin market.

After the 2017 bull run, big investors liquidated their positions, with the majority of them not returning to the market. This led to the price crashing from 5 digits to 4 digits. Pump-and-dump schemes also became commonplace, and whales could sway prices with big enough orders. Add this to the sometimes artificial prices caused by trading bots – which have become popular more than ever.

Do Bart Simpson Patterns Appear in the Traditional Finance Market? 

The answer is yes, and no. Since early 2018, the cryptocurrency market started a downward trend. In January, the total crypto market capitalization was at an all-time peak of $800 billion. Through the following months, this steadily decreased. On October 23, 2018, 54% of the total market cap of the entire crypto market was Bitcoin’s. This is comparable to the market cap of companies such as McDonald’s and IBM. As you can see, it’s difficult to compare the traditional market with the crypto market, especially due to the mostly poor participants and emerging factors like regulation of the crypto market. 

Also, a market where participants can make massive orders provides a fertile playground for price manipulation. In the crypto market, investors can enter such orders due to the lack of regulation. Also, there are looser thresholds for entering the crypto market. Plus, the execution of trades in the traditional markets is more rational and controlled. For instance, there are ‘circuit breakers’ and other mechanisms that put a halt to trading as soon as certain thresholds have been reached.

There’s also the existence, in the traditional market, of financial intermediaries that help traders achieve optimized trading that does not affect prices, avoiding Bart Simpson patterns.

How Bart Simpson patterns Affect The Market

Bitcoin ETFs: Events like these, together with similar ones, are partly why the Securities Exchange Commission refuses to approve Bitcoin ETFs. The truth is that the total market is still unstable and can be easily manipulated. In a way, the crypto market is the whales’ playground. They can send the prices up or down whenever they so wish.

Miners: Price manipulation that results in Bart Simpson patterns affects miners. When prices go down, profitability does too. The money they make might not be enough to cover their costs.

Tips to Survive Bart Simpson Patterns

  • If your goal is to go long in the medium-term or long-term, these patterns will affect you less
  • If you are a short-term trader, you may consider having stop-loss orders
  • If you notice a sudden move followed by a consolidation, know that the price can quickly move the other direction

Difference on BitMEX

BitMex recorded the lowest drop, with the currency dropping to $8600. Bitstamp hit a low of  $9135. The majority of the lows were between $9350 – $9100. The dramatic difference in Bitmex could have been due to slippage and cascading liquidations. The crash caused $100 million long liquidations on the exchange.

Bitcoin’s $10,500 Surge Is Rejected Again 

This was the third time in recent months when buyers failed to take the price past the $10,500 mark. The crypto has struggled to break past the resistance level three times the past eight months. 

The number one cryptocurrency hit $10, 500 in October 2019. In 4 weeks, it had dropped to $6, 400. In February this year, the crypto attempted to surpass the level again. But it took a violent dip to $8,400, before falling even further to $3,600 in the following four weeks. 

After its failure to cross the same level for three consecutive times, Bitcoin’s investors and enthusiasts are asking themselves if the coin will break anytime soon. Many are wondering if BTC will initiate a bull trend and test even higher resistance levels of $11,500 and above. The question is even more pertinent when you consider the intensity of the falls, and how the market has shaped up generally in recent months. 

Categories
Cryptocurrencies

Synthetix: How Does this DeFi Platform Work?

Satoshi Nakamoto’s vision for Bitcoin was money that could not be controlled by governments and regulators. Little did he know, though, that the underlying technology of Bitcoin – blockchain, wielded so much potential for the realization of this goal in a way that Bitcoin itself (alone) could never accomplish. 

Satoshi Nakamoto’s vision for Bitcoin was money that could not be controlled by governments and regulators. Little did he know, though, that the underlying technology of Bitcoin – blockchain, wielded so much potential for the realization of this goal in a way that Bitcoin itself (alone) could never accomplish. 

Satoshi Nakamoto’s vision for Bitcoin was money that could not be controlled by governments and regulators. Little did he know, though, that the underlying technology of Bitcoin – blockchain, wielded so much potential for the realization of this goal in a way that Bitcoin itself (alone) could never accomplish. 

Thanks to the blockchain network, we are now experimenting with the idea of a decentralized finance industry – whose vision is to empower all economically – regardless of race, origin, or social status. 

Synthetix is a decentralized finance platform that makes it possible for anyone with an internet connection to access a wide variety of financial assets: from Fiat currency to gold, Bitcoin, commodities, and precious metals – without the need for costly brokers or intermediaries. 

But what is Synthetix, and how does this decentralized platform work? We answer these questions and everything else you need to know about Synthetix here. 

What is Synthetix? 

Synthetix is a decentralized finance platform built on the Ethereum blockchain. It hosts tokens, commonly referred to as Synths, that are tied to the value of liquid assets like stocks, real-world currencies, cryptocurrencies, commodities, indices, and precious metals. These assets are held in the form of ERC-20 tokens. 

Synthetix started as ‘Havven,’ a stablecoin project, before rebranding to the current name. The platform’s native currency is known as the ‘SNX’ token. SNX powers the creation of Synths, as explained by the platform’s creators: “The platform uses a token called SNX (the Synthetix Network Token), and holding this token allows you to create Synths. You do this by locking SNX into a smart contract and minting Synths against this value. To ensure Synths are fully booked, the system will only allow you to issue a fraction of the SNX value you lock.”

The question you’d ask is: “Why would I hold a synthetic asset instead of the real-life asset?” Well, the main reason an individual would hold a synthetic asset is to receive a benefit that the asset itself would not provide. This could range from getting access, e.g., to gold – without the real-world implications of custody, or wanting to gain liquidity for an asset that will be hard to sell quickly enough in the real world. Synthetix users do not only get this, but they get to do so on a decentralized, peer-to-peer, and transparent platform. 

How Does Synthetix Work?

The Synthetix platform utilizes two types of tokens: the main token known as Synthetix (SNX), and a second token known as Synth. Synthetix works in a pretty straightforward manner. 

Users purchase and lock SNX in their wallets. They can then create Synths, which will track the real-life price of the assets. The price of a Synth is arrived at via oracles provided by the Chainlink network. Users can also trade Synths via the Synthetix Exchange. This allows them to convert these tokens into a form whose price they can track in different ways. For instance, there is ‘sBTC,’ which allows individuals to track Bitcoin prices, as well as iBTC, whose price moves contrarily to that of Bitcoin. 

By virtue of holding Synth tokens, Synthetix users have access to endless possibilities in trading, hedging, remittance of funds, making payments, and building a portfolio.

Whose Idea is Synthetix? 

Synthetix is the brainchild of crypto payment company blueshyft CEO Kain Warwick. Warwick conceived the idea of Havven in 2016 when looking for a solution to solve the issue of arbitrage in crypto prices in smaller crypto markets like Australia and Korea.

How Does Synthetix Remain Collateralized?

The primary concern on the same platform is what will happen if Synths began moving inversely with the underlying SNX tokens. How would the system stay collateralized if, say, the price of SNX is falling, while that of Synths rising? 

Thankfully, the platform is designed to have infinite liquidity, which, when combined with various features baked into the system, maintains the collateralization of the platform. Below, we’ll take an in-depth look into each of these features.

#1. The Requirement of 750% Collateralization

For the Synthetix system to issue new Synths, it needs to have collateralization of at least 750%. The collateral cushions the Synths in circulation from unexpected price swings.

#2. Debt-driven

Synthetix is designed in a manner that when a user mints Synth, their SNX collateral is locked up – with the Synths acting as outstanding debt. If you want to unlock your Synths, you first need to offset your debt by burning Synths that are equivalent to the value of the Synths they had issued earlier.

The minimum of 750% in collateral ensures that users can easily buy back and sell their own debt if they so wish.

#3. Debt Pools

On the Synthetix platform, there is personal debt for users who have created Synths. But there is also a universal debt underlying all the Synths in circulation. 

A user’s personal debt is calculated as an ever-in-flux percentage of the total Synths issued, together with the exchange rates of the underlying asset and that of the issued Synths. 

This means Synth issuers do not need to pay back their debt with the exact type of Synth that they minted. An individual who issued a Synth can repay the debt with any other type of Synth, provided it’s equal in market value to the Synths they wish to burn.

This mechanism lends the system ‘infinite’ liquidity, which also enables endless shifts between Synths – without upsetting the system’s balance. 

The Synthetix Exchange

Synthetix blockcian logo | Forex Academy

The Synthetix decentralized exchange allows users to buy and sell Synths via smart contracts, removing the need for counterparties or third parties. Anyone can access via a web3 wallet, allowing them to easily and quickly buy or sell Synths and SNX tokens. 

All exchanges have a fee of 0.30%. The fees are given to SNX holders as a reward for providing collateral for the Synths in circulation. 

Synthetix’s Monetary Policy

The Synthetix system also has a monetary inflation policy for SNX embedded in the code, with the total supply of SNX in circulation increasing in a five-year span – from 2019 to 2024 –  from 100 million to 250 million. 

This monetary policy was not originally part of the system. It was added when it became apparent that the exchange fees from Synth transactions were too low to incentivize SNX token holders to hold up SNX as collateral.

The additional SNX will be distributed among SNX holders who have held their SNX as collateral. This will incentivize users to contribute to the system and support the network before it’s robust and independent enough for everything to run as intended. 

Another benefit of the inflation policy is that it will make the network more secure by automatically adjusting that collateralization ratio by the adding of extra collateral to SNX holders.

Synthetix’s Exchange Fees and Staking Rewards

Anyone can buy SNX, mint Synth, and take on its debt. This qualifies one to become a staker in the Synthetix ecosystem and start collecting staking rewards  – which are a percentage of the exchange fees – set at 0.3% for every transaction.  

All exchange fees are transferred to a collective pool, after which they are distributed to SNX token holders in proportion to their outstanding debt. In this way, users can increase their staking rewards by simply increasing their SNX issuance. 

However, users can only claim to stake rewards if their collateralization ratio is above 750%. This is meant to incentivize users to actively maintain a personal collateralization ratio of 750% or above, which helps to maintain liquidity of the network.

Tokenomics of Synthetix 

SNX is currently ranking at #49, with a market cap of $146, 971, 014, and a circulating supply of 181, 454, 898. It has a total supply of 182, 701, 142, with a 24-hour volume of $995, 620. The token has an all-time high of $1.57 (24th Nov 2019) and an all-time low of $0. 032420 (5th Jan 2019). 

Where to Buy and Store Synthetix

You can purchase or exchange cryptocurrency for SNX in any of several popular exchanges, including Coinbase, Bittrex, gate.io, Liquid, and Kucoin. 

As an Ethereum-based token, SNX and Synths can be stored in any Ethereum-compatible wallet. Popular options include MyEtherWallet, MetaMask wallet, Ethaddress Wallet, Ledger Nano, Guarda Wallet, Atomic Wallet, Trezor, Sugi, Keep Key, and Jaxx Liberty. 

Conclusion

The Synthetix platform offers a decentralized, peer-to-peer, accessible-for-all platform where users get exposure to all kinds of real-world assets without the burden of acquiring ownership and other barriers. The platform has the potential to create a powerful tokenized asset platform that can shake the whole financial market. The success of this platform will be a part of Satoshi’s grand vision, even if not in the way that they envisaged it. 

Categories
Crypto Daily Topic

Rare Bitcoin Stale Block Raises Double-Spending and Immutability Concerns

It is now common knowledge that Bitcoin was not only the first cryptocurrency in history, but the blockchain network on which it runs is the most secure in the world, thanks to its ever-growing hash rate.

Stale bitcoins 2020 - Forex Academy

It is now common knowledge that Bitcoin was not only the first cryptocurrency in history, but the blockchain network on which it runs is the most secure in the world, thanks to its ever-growing hash rate.

It is now common knowledge that Bitcoin was not only the first cryptocurrency in history, but the blockchain network on which it runs is the most secure in the world, thanks to its ever-growing hash rate.

Part of the reasons it won the crypto community’s confidence as well as that of many non-techy savvy individuals is that it has core features of money: trusted, scarce, durable, divisible, and widely accepted. There is, however, another feature that is just as important because it is digital and not physical currency: the same money cannot be spent twice.

But what would be your perception of Bitcoin if you learned that Bitcoin is not immune to the double-spending problem? On January 27th, 2020, some money on the Bitcoin blockchain network was double-spent after one of the blocks in the Bitcoin blockchain turned stale according to a tweet by @BitMEXResearch.

Does an incident like this shake your confidence in Bitcoin and crypto in general?

The Crypto Stale Block and Double-Spending Problem

On the day that the first case of Bitcoin double-spending was recorded, October 2019, Bitcoin Gold (BTG), another cryptocurrency, suffered a 51 percent attack. By the time it ended, about 7,167 BTG or about $72,000 had been double-spent. In the case of Bitcoin, a single instance of stale block resulted in the double-spending of about $3. This may not be as bad as the case of BTG, but to understand how it happened, we have to take a step back and look at how computers work.

data transfer between computers - forex academy (markus-winkler-cV9-hOgoaok-unsplash)

Data transfer between computers is speedy, but it is not instantaneous. The time it takes for one computer to transmit data to another depends on many factors besides connectivity. The geographical distance between the two machines, for instance, plays a critical role.

Data sent from computer A would take slightly longer to reach computer C, which is physically farther from computer A compared to computer B, even if by microseconds. In some cases, such communication delays may cause conflicts on the Bitcoin network, resulting in the production of stale blocks.

What Is A Stale Block?

According to bitcoin.org glossary, a stale block in blockchain refers to a block of transactions that is successfully mined but not added to the current best chain of blocks. The primary cause of stale blocks is that another block was added to the chain faster than the first one could be added, often due to network delays. The recent Bitcoin stale block that led to a $3 double-spend was the result of the stale block not being added as the next block despite having verified the included transactions.

In technical terms, a block of transactions on a blockchain network becomes stale when two nodes on the chain, often located a distance apart geographically, solved the computation for the next valid block on the chain at almost the same time. When two miners each find the next block at the same time and send the information to the blockchain network, there will be a disagreement on the network for about 10 minutes or so regarding which block was actually mined first. 

Considering that every Bitcoin node and every miner keeps a copy of the blockchain, it is not uncommon for some nodes in the network to favor one of the two blocks and other nodes to favor the other block. Such a situation, however, is often resolved automatically when the next block is mined and added to the chain.

This means that nodes that accepted the block that eventually was not continued would have to throw out their last block because it is ‘stale.’ Ultimately, the system resolves such conflicts by favoring the ‘most work’ chain, or the longest chain. It is only fair that the chain with the blocks on which more work has been done wins the standoff.

Was Bitcoin Actually A Double-Spent Due To A Stale Block?

BitMEXResearch divulged the details of the Bitcoin stale block and revealed lots of details that left many people with more questions than answers. The block, mined by Poolin, had a size of 0.98MB and was mined less than half a second after the winning block created by BTC.com was mined.

The stale block was promptly orphaned, meaning that it was not added into the blockchain network. What is revealing is that the block had a total of 39 transactions on it when it was validated, but only 38 were included in the next block. The one transaction had an input of 0.00034801 (about $3), an amount that may have been double-spent.

There has been raging debate whether the $3 from the stale block was double-spent. This would be entered into the official records as a double-spending regardless of whether the transaction was a success or not. What is important here is the number of confirmations that the recipient will get. A double-spending would mean the recipient would receive two confirmations; otherwise, they will see two conflict transactions in the mempool.

Confirmations on the Bitcoin blockchain often vary, but a transaction is considered true and not a case of double-spending or stale block after more than one confirmations. Some experts argue that on the Bitcoin network, a single confirmation is not enough; three confirmations are a good number, although it may be more especially if the amount in question is high.

Bitcoin’s Stale Block Matter Raises Questions on Its Immutability

John Adler, the co-founder of Fuel Labs based on Ethereum, is a self-proclaimed “Blockchain skeptic” who insists that such a case as a stale block witnessed in January is proof that the Bitcoin network is not immutable, and thus unreliable as a digital money platform. He argues that the orphaning of a legitimate blockchain block violates Bitcoin’s “immutability” property, and in the process, proves that the ‘Nakamoto Consensus’ guarantees no consistency. Without consistency, he argues, you cannot guarantee immutability in the long term.

Bitcoin developers seemed to put the matter to rest, arguing that John’s view of immutability is naive and that such kind of immutability is not what makes cryptocurrencies work. Bitcoin’s immutability, argued Bitcoin Core developer Bryan Bishop, is a high number of transaction confirmations that make it exponentially hard to reverse or alter a transaction. 

One way that double-spending is significantly reduced in case of such an occurrence is by relying on the number of transaction confirmations. It would be dangerous to rely on only a single confirmation because it would have resulted in double-spending in the case on point. The norm is three or more confirmations, which significantly reduces the chances of a successful double-spending. 

It became clearer that immutability in cryptocurrency ought to be viewed in terms of probability, and in particular, increasingly low probabilities as the chain grows longer and mining becomes more difficult. The probability of stale block in the Bitcoin network drops with time, but it is not uncommon for two competing mining pools to complete mining a block header at almost the same time, something that happens every few months.

The last time this occurred on the Bitcoin blockchain was in October 2019 when BTC.com and its competitor Bitmain Antpool produced two blocks of transactions at virtually the same time, rendering one stale.

How Serious Is the ‘Stale Block’ Problem?

Computer security expert Jon McAfee, another Bitcoin skeptic, is on record describing the cryptocurrency as “true shitcoin” and “stale” because he believes such cases as stale blocks are bound to happen. He believes that cryptocurrencies, in general, will not really catch up with traditional currency because of unrealized problems such as orphaned and stale blocks.

The truth is that stale blocks can be created on purpose in the event malicious people attack an asset such as the Bitcoin Gold 51% attack. This publicized Bitcoin case was, however, not malicious. The system was also quick in resolving the conflict automatically. Had this been a case of intentional or malicious interference with how the Bitcoin system works, it would have been serious enough to warrant doubt over the future of the cryptocurrency. However, it was not.

Bitcoin is the largest cryptocurrency in the world by market cap. It is also the most secure by hash rate. People who have embraced and even invested in it would be wary of any news that may imply such a problem as double-spending, regardless of how small the amount involved is. The rare occurrence that resulted in a stale block is completely plausible, theoretically, but it should not cause alarm.

The Bitcoin blockchain system is designed to expect such a problem. And when it happens, as it did in January, it is a sign that the blockchain is actually in good health. The Bitcoin blockchain platform was able to identify the stale block and drop it – and that is proof that the system works. What is even more impressive is that 38 out of 39 transactions in the block made it to the legitimate block that was ultimately added to the chain.

Categories
Crypto Market Analysis

Daily Crypto Review, Jun 04 – The US Becoming The New Mining Giant; Cryptos On The Rise

The crypto market has spent the day slowly gaining upward momentum and testing resistance levels.  Bitcoin is currently trading for $9,655, which represents an increase of 1.55% on the day. Meanwhile, Ethereum gained 3.21% on the day, while XRP gained 1.3%.

The crypto market has spent the day slowly gaining upward momentum and testing resistance levels.  Bitcoin is currently trading for $9,655, which represents an increase of 1.55% on the day. Meanwhile, Ethereum gained 3.21% on the day, while XRP gained 1.3%.

The crypto market has spent the day slowly gaining upward momentum and testing resistance levels.  Bitcoin is currently trading for $9,655, which represents an increase of 1.55% on the day. Meanwhile, Ethereum gained 3.21% on the day, while XRP gained 1.3%.

HedgeTrade took the position of today’s biggest daily gainer, with gains of 29.13%. ABBC Coin lost 4.23% of its daily value, making it the most prominent daily loser.

Bitcoin’s dominance decreased slightly since we last reported, with its value currently at 65.07%. This value represents a 0.15% difference to the downside when compared to yesterday’s value.

The cryptocurrency market capitalization increased slightly as most cryptos gained some value when compared to yesterday. The market’s current value is $275.19 69.53 billion. This value represents a decrease of $14 billion when compared to the value it had yesterday.

What happened in the past 24 hours

The US becoming the new mining giant

Marathon Patent Group, a US-based company, announced that it had installed 700 units of Bitcoin mining application-specific integrated circuit (ASIC) units.

According to the June 3 announcement, Marathon Patent Group has installed 700 Whatsminer M30S+ ASICs that were produced by MicroBT. On top of that, the company is reportedly waiting for a delivery from BitMain (the leading mining ASIC producer) of 1,160 AntminerS19 Pro units.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

The largest cryptocurrency by market capitalization has spent the day slowly testing resistance levels and gaining a slight bit of value. Once the price stabilized around the $9,450 level, Bitcoin started working its way up, slowly testing and then passing the $9,580 level. It is now in the process of testing this level to determine whether it will turn into support or if the price will go back down.


Bitcoin’s volume reduced drastically when compared to yesterday, while its RSI is at 52.

Key levels to the upside                    Key levels to the downside

1: $9,735                                           1: $9,580

2: $9,870                                           2: $9,250

3: $10,010                                          3: $9,120

Ethereum

Ethereum has outperformed Bitcoin on the daily as it made more bold moves throughout the day. The second-largest cryptocurrency by market capitalization did the same as Bitcoin, just with a larger percentage gain. Its price stabilized around the $235 level before it started moving up, passing the $240 resistance and reaching $246.3. The price is now on a slight decline and possibly testing the $240 level.


Ethereum’s volume came back to below-normal levels after yesterday’s downswing, while its RSI level is at 58.5.

Key levels to the upside                    Key levels to the downside

1: $251.4                                            1: $240

2: $260                                              2: $225.4

                                                           3: $217.6

Ripple

XRP didn’t do anything to differ that much from the other two aforementioned cryptocurrencies. The third-largest cryptocurrency by market cap managed to reach past the $0.205 level after a whole day of slowly moving up. It is currently in the process of testing the level as support. XRP’s moves above $0.205 are seemingly more violent and volatile, while the moves below it are slower and more gradual.


Key levels to the upside                    Key levels to the downside

1: $0.214                                           1: $0.205

2: $0.227                                           2: $0.2

                                                           3: $0.19