Tag: cryptocurrencies

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Cryptocurrencies

Beginner’s Guide to Storm: The Comprehensive Guide

How many minutes or hours do you spend on your phone every day? What if you could earn extra cash while doing so? It turns out you can, at least on Storm Market.

How many minutes or hours do you spend on your phone every day? What if you could earn extra cash while doing so? It turns out you can, at least on Storm Market.

How many minutes or hours do you spend on your phone every day? What if you could earn extra cash while doing so? It turns out you can, at least on Storm Market.

Storm Market is a blockchain-powered platform that allows millions of people from all over the world to perform small tasks and earn cryptocurrency. All you need to do is sign on the platform, identify tasks you like, and get working. 

In this article, we’ll delve deeper into what the Storm project is all about, including how you can start earning tokens!

What is Storm?

Storm is the native currency of StormX, a blockchain project that aims to change how we view work by decentralizing the gig economy. Storm’s platform allows freelancers from all over the world to perform certain ‘microtasks’ and earn cryptocurrency in return through blockchain-based smart contracts. Such microtasks may include watching videos, completing surveys, and trying new products. 

The StormX team believes that the opportunity to earn to get by in life and advance ourselves along with our communities is a need that’s common to us all. It aims to challenge the current freelance industry (e.g., the likes of Upwork, Guru, and Fiverr) that’s not only centralized but also takes a huge cut from freelancers’ earnings. 

Storm Market is the place where Storm wants to take the first step to change this problem. Ultimately, users can take part in ‘gamified’ microtasks that allow anyone anywhere to earn money at any time, as long as they’re connected to the internet – no matter what device they are using. And it’s just not about money. Community participants can interact and engage with each other, fostering active participation and a feeling of belonging. 

The Storm Market will enable this for users: 

  • Allow them to find new opportunities easier.
  • Make it easier to advance.
  • Make it easier to engage with others, no matter their role in a community.

The Principles of StormX

StormX believes in and is guided by these three principles: 

  1. Effective global inclusion is possible if all participants can negotiate and reach an understanding.
  2. The opportunity to earn and improve one’s condition is a basic human right.
  3. Efficiency is about respecting time – the most valuable resource.

How can you earn STORM Tokens? 

There are three main ways through which users can earn STORM tokens on the Storm Market. 

STORM PLAY lets users “play to earn.” They can do this through the Storm Play application on both Android and iOS. ‘Playing’ involves playing videos, filling out surveys, or trying new products and services. Players can earn crypto in the form of Storm Bolts, Bitcoin or Ethereum. 

STORM SHOP lets users “shop to earn.” Via this platform, users are rewarded for purchasing certain products and services. 

STORM GIGS lets users “perform to earn.” Participants are given the opportunity to earn STORM tokens for performing various micro-tasks such as freelance tasks, quality assurance testing, machine learning tasks, and so on. 

Who Can Use the Storm Market?

Anyone from around the world can use the Storm Market. However, the platform is also created with certain categories in mind, and the team has labeled these categories to make it easier for participants to interact with each other. 

People who use the platform to make money/take advantage of available opportunities are called Storm Players. Advertisers, gaming platforms, companies, and recruiters and anyone else who can offer opportunities are known as Storm Makers.

Other participants on the platform are: 

  • Achievers- individuals who like to learn and master new skills, and want to succeed at whatever they do
  • Disruptors – individuals who like to challenge existing systems and are inclined towards tasks such as testing, rearranging existing elements and so on
  • Explorers – these are free-spirited individuals who like tasks with an exploration and creative element, and are likely to find and complete tasks on the fly
  • Socializers – these are people who like interacting and forming connections with others and are likely to check on and complete referral tasks.
  • Philanthropists  – these are people who like tasks that are inclined towards contributing to the greater good, and are more likely to seek Storm Makers whose tasks involve acts of altruism
  • Players  – a general term encompassing all the above, these are individuals who carry out tasks so as to clinch awards and prizes.

How Does Storm Market Use the Blockchain? 

The blockchain is a crucial and central part of the Storm Market platform. It facilitates the efficient matching of Storm Makers and Storm Players. 

Storm market also utilizes blockchain smart contracts – ‘Storm Contracts’ to automatically enforce the terms of engagement between Players and Makers. The automation and the elimination of human intervention lead to faster processes, high efficiency, and lower fees. 

Storm Tokenomics

As of June 10, the price for STORM token was $0.003401. The token held a market position of #154, with a market cap of $26, 644, 398, a 24-hour volume of 8, 856, 343, a circulating supply of 7, 833, 646, 881 and a total supply of 9, 967, 745, 869. STORM’s all-time high was $0.246579 (Jan 09, 2018), while its all-time low was $. 0.000572 (March 13, 2020). 

Where to Buy and Store STORM 

You can acquire Storm tokens by participating in the Storm Market platform, where you will earn in the form of a currency known as Bolts. You can then convert these into Storm tokens. Additionally, you can get STORM tokens for any of these exchanges: Bittrex, HitBTC, and BitSwap. 

STORM token is based on Ethereum’s blockchain, and thus, you can store it on any ERC20/Ethereum-compatible wallets. Popular options include MyEtherWallet, Mist, MetaMask, Jaxx.io, Trust Wallet, Atomic Wallet, Ledger, and Trezor.

Who’s on the Storm Team?

Storm is the brainchild of CEO and Founder Simon Yu, who is a graduate of the Foster School of Business. 

Sean Zhong is the Chief Technology Officer, and he has experience working in data warehousing and software engineering. 

Tara Nygaard is the chief operating officer, and she has experience in cybersecurity and the Internet of Things (IoT).

Storm also features a strong suit of advisers such as Bancor CEO Guy Benartzi, Bittrex founder and CEO Bill Shihara, as well as Ethereum’s co-founder Anthony Do Iorio. 

Final Words

Storm provides a platform for everyone around the world to earn anytime, whether on their mobile devices, tablets, laptops, and so on. With just a click of a button, you can earn extra money by sparing just a few minutes a day. It is a safe and secure platform for people who want to promote products, get small tasks taken care of, and so on. On Storm, individuals can also engage, interact, and be part of a larger community. Storm is a game-changer, and it will be interesting to see how it evolves. 

Categories
Cryptocurrencies

What’s Storj (STORJ)? Here is All You Need to Know

The future of online storage is decentralized. With idle space on your hard drive, and with a reliable internet connection, you can store files for someone from the other end of the world and get paid for it. This is possible because of blockchain, the tech that was brought to life by Satoshi Nakamoto, and one that powers thousands of cryptocurrencies. 

The future of online storage is decentralized. With idle space on your hard drive, and with a reliable internet connection, you can store files for someone from the other end of the world and get paid for it. This is possible because of blockchain, the tech that was brought to life by Satoshi Nakamoto, and one that powers thousands of cryptocurrencies. 

The future of online storage is decentralized. With idle space on your hard drive, and with a reliable internet connection, you can store files for someone from the other end of the world and get paid for it. This is possible because of blockchain, the tech that was brought to life by Satoshi Nakamoto, and one that powers thousands of cryptocurrencies. 

With blockchain, it’s now possible to create a decentralized, peer-to-peer, and cryptographically secured storage platform that incentivizes users with crypto.

Storj, a product of Storj Labs, is one such project. And it has received a stamp of approval from Ethereum’s Vitalik Buterin, who has praised the project, saying, “Distributed file storage systems like Storj have the potential to eliminate high mark up costs and market inefficiencies and provide a much higher level of privacy reliability and quality of service than we see today.”

What is Storj all About?

Storj is a decentralized and peer-to-peer, file storage that uses encrypted shards and blockchain-powered hash tables to secure and store files. Storj aims to make cloud file storage more accessible and secure. 

Current file storage solutions such as Dropbox, Google Drive, and so on have limitations. Events such as internet connectivity outages mean that you cannot access your files. Also, the service is centralized, meaning the companies have access and control over your data. 

Storj proposes to solve these problems via a blockchain-based, peer-to-peer, private, and distributed file storage solution. 

Storj and Torrents

Before we dive into Storj, we need to do a refresher on torrents. At the start of the last decade, torrents became the go-to way for internet users to download content – from movies to TV shows to videos. Torrents operate on a peer-to-peer fashion, as detailed below: 

  • Many users store copies of a particular file in the peer-to-peer network 
  • When you want a copy of the file, you send a request to the network
  • Users who have a copy of the file (these users are known as seeds) send you fragments of the file
  • You (the requester) receives many fragments from many different copyholders, and the torrent software rearranges the fragments to form a complete file

The advantage of using a torrent to download content is you can receive fragments of the file from multiple sources simultaneously. This means you get the file quicker than you would if you were downloading the whole thing at once from just one source. 

Now, these torrents were (and still are) an illegal way to acquire content. But since they are operating on a decentralized model, no one can shut them down. 

Storj works the same way, except not in an illegal way, or for pirated videos. With that, let’s look at how Storj works. 

Functionalities of Storj 

#1. File Sharding

Storj’s shard-based storage is much like the fragments of torrents. When a user wants to store a file on Storj, they first divide it into many smaller chunks (sharding). The benefit of this is when you want to download the file, you can do it in parallel, which makes the process quicker. Also, it’s only you who knows where the pieces are located, meaning it’s a completely private affair with you in total control. 

The location of shards is one of the major differentiators between Storj and torrents. With torrents, anyone can access the shards. On the other hand, Storj, as a cloud storage service provider, prioritizes user privacy. And it does this by utilizing blockchain and cryptography. 

To achieve utter privacy, Storj implements a distributed hash table (DHT) through which a user locates all the shards of the original file. To access the shards, you need a private key. Without the key, it’s next to impossible to track down the locations of the various shards. Storj’s hash table is known as Kademlia, and it’s one of the network’s core technologies. 

#2. Parity Shards and Erasure Coding

On Storj, shards are distributed across computers all over the network. But what would happen if one of the computers went down or stopped running the network? What would happen to the shards on that particular computer?

Such a scenario necessitates that Storj implements some sort of redundancy. (In computer science, redundancy is the duplication of components so that there will be a backup in case of system failure). Storj achieves redundancy via ‘parity shards.’ When a user uploads a file, they can choose how much redundancy they want for the file. With enough parity shards, you can significantly reduce the chances of losing pieces of your data. 

However, with time, the likelihood of losing shards increases. To counter this, Storj performs regular audits. But as a user of the platform, the best practice would be periodically recalling and then reuploading your files.

At the same time, too much redundancy would slow down the network. Storj combats this by implementing coding rules that reduce redundancy by erasing shards that have been overly duplicated. Through this process, Storj also identifies data whose redundancy should be increased.

#3. End-to-end encryption

Apart from sharding, Storj ensures high-level privacy by implementing end-to-end encryption. Sharding already ensures that no one, not even data hosts (called farmers), can access the whole file. But this is not enough since even for one to be able to access and read a shard would be problematic.

To prevent this, Storj facilitates data owners (known as tenants) to encrypt their files before sharding. The encrypted file has only one key that you keep on your computer (or in the bridge – more of that in a moment). 

As the only owner of a private key, you’re the only person who can read the file. Therefore, farmers store not just encrypted files, but ones that are a part of a whole original file. This makes your data secure since the data kept by a farmer is useless as just a shard – and an encrypted one at that – that’s part of a larger file. 

For an entity to hack the Storj network and locate a file, they would first need to find all the shards that make the whole of the file. This is next to impossible without the private key. Again, they would need to convince farmers to send them the shards. And lastly, they would need to access the encryption key (either by guessing (impossible) or stealing). As you can see, for one to access data stored on Storj, they’d need to jump through so many hoops, but even those wouldn’t get them very far. 

#4. File Verification

Anyone entrusting their data with Storj would naturally ask themselves the following questions from time to time: “How can I know my files are still there?” “What if a farmer has deleted them or turned their computer off?” 

Storj deals with this concern by carrying out hourly audits,  together with other verification processes. For farmers to receive their payments, they must first provide proof of having the shards they’ve been assigned. For this to happen, farmers receive a request from Storj. If they have changed or deleted the shard, it will not be possible for them to respond to the request. But if they currently have the file, they are able to respond to the request correctly. 

They will then receive a reward for storing and maintaining the file. As you can see, farmers have an incentive to store and protect files accurately. 

#5. Bridge

Bridge is the name of the server or protocol that allows you to access your encryption keys across a range of multiple devices. Initially, tenants could only store their keys locally on their computer. However, this was limiting because it meant you could not switch devices.

Bridge decentralizes your access – all you need to do is to verify your identity and access your files from any device.

Storj’s Token (STORJ)

STORJ is the Storj network’s native token. It acts as a means of payment on the network. Tenants pay fees for having their files stored on the network, while farmers are compensated for sharing their storage space and bandwidth. 

The token runs on top of Ethereum’s blockchain, and it uses a proof-of-work consensus mechanism. Storj has a maximum supply of 500 million. 

What’s the Market Look Like for STORJ?

As of June 11, 2020, STORJ’s price was $0.160915, and it ranked at #158, with a market cap of $26, 082, 246, the 24-hour volume of $114, 759, 728, a circulating supply of 162, 086, 753, and a total supply of 424, 999, 998. The token’s all-time high was $3.13 (Jan 09, 2018), while its all-time low was $0.048353 (March 13, 2020). 

Where to Buy and Store STORJ

Currently, you can buy STORJ tokens from any of these exchanges: Binance, Coindirect, eToro, and  Poloniex. 

As an ERC20-compliant token, STORJ can be stored at any Ethereum-compatible wallet. Popular choices include MyEtherWallet, MetaMask, Trust Wallet, Atomic Wallet, Trezor, and Ledger Nano. 

Who’s on the Storj Team? 

Storj is the brainchild of Shawn Wilkinson, who’s also the CEO of Storj Labs, the company behind the project. The rest of the team includes professionals in software engineering, business, marketing, graphic design, and more. 

Final Words

Storj provides a compelling product: decentralized, peer-to-peer, and cloud-based storage with two formidable layers of security. Its working model is robust, yet simple, file owners upload their content, and farmers secure them with their extra storage space and bandwidth resources. If Storj catches on, it could very well give traditional online storage services a run for their money. 

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Crypto Videos

Bitcoin’s $20K All Time High Was Actually Fake!

https://youtu.be/yQkDI7ERk2I

https://youtu.be/yQkDI7ERk2I

One Crypto Analyst Claims That Bitcoin’s $20K All-Time High Was Actually Fake


Timothy Peterson, an advisor from Cane Island Alternative Advisors’, has claimed that Bitcoin’s near-$20,000 all-time high from December 2017 was actually “fake.”

In a tweet posted on June 11, Peterson said that it took almost seven years for people to accept that Bitcoin’s price was manipulated in 2013, referencing a recent Japanese court ruling upholding data tampering charges against Mark Karpeles, who was the former Mt. Gox CEO.
He then followed this statement up with another trivial one, saying, “How long before people understand that BTC was manipulated again in 2017 and again in 2019?”

What actually happened?

Peterson is not promoting the conspiracy theory of Bitcoin $20,000 all-time high never happening, but that it rather likely happened due to manipulation.
When he was asked what defines a ‘real’ all-time high in his mind, he responded that it was his math that said that these weren’t real all-time highs, rather than it all being “in his mind.”
He said that only if an all-time high is supported by fundamentals as measured by active addresses, hash rate, and transaction counts, it can be legitimate. Otherwise, the price is not sustainable.

What can we expect?

Peterson defended recent comments he made comparing the current Bitcoin price moves to the ones BTC made just before the 2013 bull run. If we talk about a proportionate bull run today, we could see Bitcoin’s price to hit $75,000 within weeks.
On the other hand, Peterson refutes any claims that a$75,000 Bitcoin is his prediction. Instead, he claimes to have simply posed the hypothetical question of whether the history will repeat itself?
Peterson, however, did recently predict that Bitcoin’s price will rise to $1 million by 2027, which he concluded based on an organically increasing number of users.

Categories
Cryptocurrencies

What is Enigma: Complete Beginner Guide

One of blockchain’s persistent thorns on the side is that of privacy and scalability (or lack of them). With transparent platforms and labor-intensive verifications and consensus mechanisms (Bitcoin and Ethereum), traditional blockchains are not equipped to deal with the fast, privacy-oriented world of today. 

One of blockchain’s persistent thorns on the side is that of privacy and scalability (or lack of them). With transparent platforms and labor-intensive verifications and consensus mechanisms (Bitcoin and Ethereum), traditional blockchains are not equipped to deal with the fast, privacy-oriented world of today. 

One of blockchain’s persistent thorns on the side is that of privacy and scalability (or lack of them). With transparent platforms and labor-intensive verifications and consensus mechanisms (Bitcoin and Ethereum), traditional blockchains are not equipped to deal with the fast, privacy-oriented world of today. 

Using Bitcoin’s public addresses, for example, a dedicated person with resources can soon track who is the real-life owner of a particular transaction. For privacy-conscious users, this lack of privacy is not an option. And when it comes to scalability, the blockchain community remembers the CryptoKitties fiasco on the Ethereum blockchain, in which the uber-popular game almost brought down the network, proving it’s far from scalable for high-volume transactions. 

Enigma is a blockchain platform that aims to solve these issues for blockchains via the use of second layer technology. The platform was initially built on Ethereum but has since launched its own mainnet in Feb 2020.

Below, we explore the Enigma concept, how it works, and some applications for its privacy blockchain.

What is Enigma?

Enigma is an off-chain network that aims to complement blockchain networks via a second layer of storage and computation. It aims to make blockchains more private and scalable by providing a platform where they (blockchains) can offload data. This data will be treated with high-tech security, and the process will also help to decongest the main chain. 

Enigma sees and hopes to solve the following problems with the current blockchain setup. 

i) Data Privacy

Blockchains have transparent transactions by nature. As you can imagine, they don’t go hand-in-hand with privacy. This limits the scope of decentralized applications (DApps) that can be built. For instance, healthcare, finance, and manufacturing all need “a privacy” that cannot be afforded by current blockchains.

ii) Usability

Decentralized applications are already not exactly easy to use. Added to the issue of privacy, interactions with such apps become more complicated.

iii) Scalability

The limited block size, e.g., 1MB for Bitcoin’s transactions, plus difficult computations that need to be carried out before transactions are verified, leads to uncompetitive scalability levels. 

iv) Data Silos

Current data sharing solutions are centralized and characterized by silos, restricting the sharing of crucial information and creating single points of attack. 

Enigma seeks to solve these problems, as we’ll see below.

How Does Enigma Work?

#1. Off-chain Ecosystem: MPCs and DHT

Enigma will utilize multi-party computations (MPCs) and distributed hash tables (DHT) to achieve data privacy. The MPCs will be responsible for distributing data between network nodes, splitting info into small separate chunks to make it more secure. The DHT then stores this data in an off-chain database. Essentially, MPCs and DHTs are two parts of a whole, with both playing a crucial role in achieving top-notch privacy for network data. 

Network nodes receive fees for securing and maintaining the network, as well as being incentivized through the network’s token, ENG. After the February move to their own mainnet, the network will adopt a new native coin, ‘Secret’ (SCRT) through which users can claim a stake in the network, as well as pay transaction fees.

The Enigma network ensures that node operators act with honesty and integrity via the use of the security deposit that they lose in the event of misconduct. 

The Enigma white paper explains: “To participate in the network, store data, perform computations, and receive fees, every full-node must first submit a security deposit to a private contract. After each computation is completed, a private contract verifies if correctness and fairness were maintained. If a node is found to lie about their outcome or aborts the computation prematurely, it loses the deposit, which is split between the other honest nodes. The computation is continued without the malicious node (e.g., by setting its share of the data to 0).”

 #2. Catalyst and Data Marketplace

Enigma utilizes secret contracts through which developers can create privacy-focused DApps. Some use cases for the secret contracts include election/voting, financial audits, healthcare, identity management, and so on. 

Another use case is the trading data marketplace. One such use case is Catalyst, the first-ever DApp on the Enigma platform. Catalyst provides an environment where users create, share, and exchange data to create the best crypto investment strategies. 

The Catalyst whitepaper puts it this way: “The main goal of Catalyst is to serve as a one-stop-shop for developers (or quantitative traders) who are interested in developing trading strategies that operate in the expanding domain of crypto markets. Developers can utilize the myriad of data sources that will be made available through our platform and will be served through Enigma’s peer-to-peer data marketplace protocol, to build their models, backtest them according to historical data, as well as put their strategies to the test in a simulated or real trading environment.”

What are Some of Enigma’s applications?

The Enigma product can be utilized in a raft of many disparate industries. Let’s take a look at some of those: 

1. Data protection

Companies can use Enigma to ensure high-level protection for their data and thwart off corporate espionage. This would also extend to employees, who can still access and use data but cannot steal it. This would help organizations save up on security costs. 

2. N-Factor Authentication

Biological identifiers such as voice, face, and fingerprints recognition can be stored on the Enigma blockchain. Only the right owner of such identifications can be allowed to access the data. 

3. Identity Authentication and Secure Storage

This would involve authenticating identities in a provably correct, anonymous, and trustless manner. All that is needed is for the user to share their personal information secretly. When they log in, an authenticating private contract is implemented, thus giving the user a pass-through to the account. 

4. IoT

Manage and utilize highly sensitive data handled by IoT devices in a decentralized and trustless cloud computing system

5. Distributed Personal Data Store

On the Enigma platform, individuals can store and share personal data with third parties while still maintaining total control and ownership of the data.  The decision to share the data is reversible, and third parties can only perform computations on the data – they do not have access to it.

Who is on the Enigma Team?

The Enigma core team is a duo that’s also MIT graduates with a ton of experience in software engineering between them. 

Guy Zyskind is the CEO and co-founder. He has an M.S. from MIT and 10 + years of experience in software development. Zyskind is also a former MIT Media Lab research assistant and the tutor of the first-ever class on blockchain at MIT. 

Can Kisagun is the project CPO and co-founder. He’s a graduate of MIT’s Sloan School of Management and has experience with tech startups. He formerly worked at McKinsey and company as a business analyst.

Several notable investors have also given a thumbs up to the project, including Floodgate, Flybridge Capital Partners, the Digital Currency Group, and MIT. 

Enigma (ENG) Tokenomics

As of June 8, 2020, Enigma is trading at $0. 321533, world ranking at #166. The token’s market cap is $24, 062, 307, and its 24-hour volume is $1, 380, 629. The current circulating supply is $74, 836, 171 out of a total supply of 150, 000, 000. ENG’s all-time high was $8.30 (Jan 10, 2018), while its all-time low was $0.070056 (March 13, 2020). 

Where to Buy and Store Enigma 

Enigma is available on markets such as Binance, Huobi, Coinswitch, Cointree, and Bittrex. In some of the exchanges, you will need to first purchase another crypto such as BTC and ETH before converting it to ENG. 

ENG is an Ethereum-based token (for now – see the statement by the team on the issue), meaning you can store your ENG tokens in any Ethereum-compatible wallet. Some of the best options include MyEtherWallet, Parity, MetaMask, Guarda, Trust, Bread, as well as user favorites Ledger Nano S and Trezor.

Final Words

Enigma promises two robust solutions for the current blockchain setup: security and scalability. Secret contracts provided by the platform will afford users a high-level verification of data, while still taking advantage of the network’s watertight privacy. Developers can offload blockchain data onto the off-chain Enigma, which will facilitate scalable and safe storage. 

Enigma’s first-ever DApp, Catalyst, is a must-see for new and experienced traders. Here, they get unfettered access to a raft of tools to optimize their trading and investment decisions, all in an autonomous, trustless environment. Enigma’s unique offerings separate it from the crypto herd, and the community is keenly watching to see how it evolves.

Categories
Cryptocurrencies

Beginner’s Guide to Bancor (BNT) 

In the stiff competition of cryptoverse, it’s easy for big-name cryptocurrencies such as Bitcoin and Ethereum to hog nearly all the limelight and market activity, leaving lesser-known projects scrambling for half the attention. 

In the stiff competition of cryptoverse, it’s easy for big-name cryptocurrencies such as Bitcoin and Ethereum to hog nearly all the limelight and market activity, leaving lesser-known projects scrambling for half the attention. 

In the stiff competition of cryptoverse, it’s easy for big-name cryptocurrencies such as Bitcoin and Ethereum to hog nearly all the limelight and market activity, leaving lesser-known projects scrambling for half the attention. 

That also means the projects’ intended purpose might get lost in the peripheries – to the detriment of the blockchain and crypto sphere. 

Bancor is a blockchain project that seeks to provide liquidity for illiquid cryptos by providing an instant conversion platform where users can obtain their desired tokens at little or no fees. Also, the conversion needs no second party, eliminating counterparty risk. 

This piece is an in-depth exploration of the Bancor platform, as well as its native token, BNT. 

What is Bancor? 

Bancor is a blockchain-powered protocol that facilitates the direct and instant exchange between different cryptocurrencies. This kind of exchange would remove the need for centralized exchanges such as Coinbase. 

Bancor aims to solve the problem of illiquidity that characterizes the current cryptocurrency market. With popular coins like Bitcoin and Ethereum, illiquidity is not an issue since there’s always a ready market looking to acquire or exchange them. However, for thousands of other coins and tokens that are yet to attract as much attention –  a market is definitely an issue. 

A cryptocurrency’s liquidity is determined by the lack of or the presence of a ready market. A crypto with high liquidity is one that you can easily buy or sell at any time, and the reverse is true for one with low liquidity. 

The Bancor team believes that the vast majority of cryptos that have low liquidity are being excluded from the internet of value. As such, it has created a protocol that can integrate those tokens and make them more accessible. It envisages a future where millions of cryptocurrencies are effective – and readily tradable. 

How Does Bancor Work? 

#1. Smart Tokens and the Bancor Protocol

Bancor employs smart contracts to create ‘Smart Tokens’ to achieve an alternative to the usual way of trading. A standard paper transaction involves two parties exchanging tokens. By contrast, the Bancor protocol utilizes a trading mechanism based on smart tokens, and a transaction does not have to involve a second party. 

Bancor’s protocol is designed to convert directly between different ERC20 tokens – without the need or involvement of a second party or third-party vendors like crypto exchanges. 

This is how it works: smart tokens are linked to smart contracts that act as the reserves of other ERC20 tokens. The smart tokens then process conversions internally, depending on currently held reserves and the volume of exchange requests. 

You can think of smart tokens as coins that hold the monetary value of other tokens. On the Bancor network, they play much the same role as that of a Central Bank that holds foreign currency reserves and oversees conversions between them as and when required.

The Bancor protocol supports all cryptos that are Ethereum/ERC-20 compatible. Any single token created on Bancor is ERC20 compliant, and hence it is compatible with all other tokens on the network. 

#2. Bancor’s Liquidity 

Bancor enables liquidity for tokens by eliminating the need for transacting parties to match so that an exchange can take place. Instead, you can make conversions at any time on the network. 

The network utilizes a Constant Reserve Ratio (CRR) in smart contracts to ensure liquidity. CRR is a mechanism that makes sure the smart tokens are holding reserves at any time. 

As tokens go through various smart contracts (from a user request to conversion, to receiving), transactions are calculated through a complex mix of algorithms. These algorithms are designed to oversee conversion between different currencies without depleting the reserves.

#3. Converting Tokens 

Users can access Bancor and convert between available tokens through the network’s web application. 

A standard token conversion would follow more or less of this process: After selecting the tokens, you want to exchange, click “convert.” The protocol will kick off a series of requests to various smart contracts. The first request converts the token you’re holding to a smart token that holds reserves for that token. The smart token is then dated for another that holds reserves for the token that you want to acquire. When these conversions are through, you receive your desired token.

The Bancor Network Token 

Bancor has its own native currency called the Bancor Network Token (BNT). BNT is the default reserve currency held as a reserve by all smart tokens. As such, BNT reduces the number of conversions that are needed to arrive at the end token. 

What Are Some Use Cases for the Bancor Protocol?

The Bancor team provides several use cases of the protocol. Let’s take a look at some of them. 

  • The smart tokens can improve the functionality for any cryptocurrency 
  • Community tokens get a chance to thrive, allowing the group, institution, city, etc. to use it for collaborations
  • Businesses can create high-liquidity tokens to power loyalty systems

The Bancor Team

The Bancor Team comprises a core team of five based in Zug, Switzerland: Bernard Lietaer, Eyal Hertzog, Guy Benartzi, Guido Schmitz-Krummacher, and Tim Draper. 

Bernard Lietaer is an economist and civil engineer who believes that communities should be able to create and possess their own local currencies. 

Eyal Hertzog is the lead architect of the project and co-founder of video-sharing company Metacafe, as well as Appcoin, a project that utilizes user-generated marketplaces and community currencies. 

Guy Benartzi is the founder of the gaming company Mytopia and co-founder of Israel-based development studio Particle Code. 

Guido Schmitz-Krummacher is a notable figure in the crypto space and is a member of the executive board of the crypto project Tezos (XTZ). 

Tim Draper is a venture capitalist and founder of venture capital firm Draper Associates. 

What’s the Market Look Like for Bancor (BNT)? 

As of June 10, 2020, Bancor is trading at $0.769842, while ranking at #106 in the crypto market. It has a market cap of $53, 233, 437, a 24-hour volume of $26, 330, 312, a circulating supply of 69, 148, 554 add a total supply of the same volume. It has an all-time high $10.00 (January 10, 2018) at an all-time low of $0.117415 (March 13, 2020).

Where to Buy and Store BNT

You can acquire Bancor tokens directly by converting it from another supported token on the Bancor web app. If not, you can obtain it from a BNT-supporting exchange such as OKEx, Binance, HitBTC, Bittrex, Liqui, Upbit, AEX, and Tidex. 

You can store BNT on any ERC20/Ethereum compatible wallet, including MyEtherWallet, MetaMask, ethaddress, Parity, Guarda, Trust Wallet, imToken and others. 

Final Words

Bancor is about bringing utility to thousands of cryptos so they can carve out a place in the global crypto market. With Bancor, users have a secure, trustless platform where they can obtain and liquidate relatively illiquid tokens. With this novel and crucial purpose, the Bancor network is only set to expand on the future. 

Categories
Crypto Daily Topic Cryptocurrencies

What is Aragon (ANT)? Here is The Definitive Guide

Since time immemorial, the world has run on centralized systems. But centralization has proven to have its own challenges, such as bureaucracy, slow decision-making processes, and single points of failure. On the other hand, a decentralized model offers room for more timely decisions. And it eliminates a single point of attack. 

Since time immemorial, the world has run on centralized systems. But centralization has proven to have its own challenges, such as bureaucracy, slow decision-making processes, and single points of failure. On the other hand, a decentralized model offers room for more timely decisions. And it eliminates a single point of attack. 

Since time immemorial, the world has run on centralized systems. But centralization has proven to have its own challenges, such as bureaucracy, slow decision-making processes, and single points of failure. On the other hand, a decentralized model offers room for more timely decisions. And it eliminates a single point of attack. 

With blockchain, the concept of decentralization is even better. The technology brought to life by Bitcoin’s creator – Satoshi Nakamoto – can facilitate unprecedented speeds, transparency, and security in the way we do things. 

Thanks to blockchain, we are now talking about decentralized autonomous organizations (DAOs) – organizations that (can) run on decentralized platforms and without the need for human input. Such an organization model not only saves money, but it also saves time and packs a ton when it comes to efficiency. 

Aragon Network is a platform that aims to empower organizations anywhere to achieve this. Powered by its native token, ANT, Aragon is leading the way towards a decentralized economy. 

What is Aragon? 

Launched in February 2017, Aragon is an Ethereum-based, open-source project that aims to empower anyone to create their own decentralized applications (DApp). It features a native token, ANT, that gives network participants the right to vote on the future direction of the platform. The ultimate goal for the project is for it to become a decentralized autonomous organization and DApp that’s free for anyone to create their own on the Aragon blockchain. 

The project’s Rationale

Traditional organizations spend a ton of money on overhead and administrative costs. And in their interactions with other organizations, there is the undesirable mix of fees, delays, and intermediaries that lead to overall friction and inefficiencies. Aragon seeks to remedy this by providing a platform where organizations can operate in a decentralized model on a shared platform.

Most organizations share what can be called standard functions. Whether it’s providing equity to investors, allowing shareholders to vote on key decisions, fundraising, compensating employees, implementing security access, almost all organizations have similar administrative functions. These functions make up part of the Aragon DApp solution for any organization that’s on-boarded on the network. Aragon hopes to simplify the process of setting up and running these operations on the blockchain. 

The Technology Behind Aragon

The Aragon platform is made of Aragon Core, a Solidity decentralized autonomous organization (DAO) framework, and online-based DApps. Aragon focuses on two key principles: 

  • A decentralized court/jurisdiction for solving disputes on the network and enforcing contracts on the platform
  • An upgrade system

Aragon Core, which supports organizational and management logic, is made of four components: 

  • Bylaws defining user permissions
  • A decision-making governance system
  • Capital system for token issuance
  • A finance accounting system 

Aragon’s interface is designed to be friendly and intuitive for non-technical users, yet provides an environment for developers to create applications and contribute to the network. 

Also, Aragon’s incorporation of DAO principles is intended to eventually allow the network to give control to users who will govern the system through a voting mechanism incentivized by the ANT token.

In addition, the network hopes to eventually be financially self-reliant by aggregating fees collected from users. The funds will be allocated to maintaining the network and paying service providers such as core contract developers, the jurisdiction of courts, and a bug bounty program. 

Modular Custom Features

Organizations will be able to edit existing modules, incorporate more functionalities, or develop completely new ones as they wish. The Aragon team envisions the Aragon core technology finding users that extend beyond operating traditional businesses. Among others, the following use cases could emerge: 

  • Political elections and national polls: smart contracts could be employed to create a prediction model that holds elected officials to their promises
  • Contractor payment module: on-boarding subcontractors and compensating them based on milestones or whichever model they prefer
  • Enhanced analytics and accounting: employ advanced visualization techniques to accounting and auditing data for your organization

The ANT Token

The ANT token is the native cryptocurrency of the Aragon network. The token is critical to the governing system and incentivizing mechanism of the platform. The token was sold in a successful initial coin offering (ICO) in May 2017, raising $24 million. 

The token is at the center of the running of the platform. Individuals with a stake in ANT can vote on key decisions, participate in the decentralized court system, play a role in the Aragon Foundation and contribute to research and development for the network through the Aragon Nest program. 

Who is Behind Aragon? 

The Aragon team comprises diverse talents with diverse backgrounds, both geographically and experience-wise. 

Luis Cuende is the founder and project lead and holder of accolades, including “The Best Underage European Programmer” in  2011 and “Forbes 30 Under 30” and “MIT Innovators Under 35”. He has also been an advisor to the Vice President of the European Commission in charge of the EU’s  Digital Agenda. 

Jorge Izquierdo is the Tech Lead. He has several projects under his belt and is also a recipient of the Thiel Fellowship and Apple’s WWDC scholarship. 

The ultimate goal of the project, however, is for Aragon to no longer need a team. The developers hope community involvement and support will drive future initiatives, with the Foundation only playing a minor role in coordinating contributions.

What’s the Market Look Like for ANT? 

At the time of writing, ANT is trading at $1.12 while ranking at #126 in the crypto market. It has a market cap of $35, 983, 594, a 24-hour volume of $259, 021, a circulating supply of 32,100, 881, and a total supply of 39, 609,534. The token’s highest price ever was $7.76( Jan 07, 2018), while it’s lowest was $0.285450 (No 25, 2018). 

Where to Buy and Store ANT

ANT is available on several popular exchanges, including Bittrex, Liqui, Changelly, Livecoin, IDEX, EtherDelta, Novaexchange, HitBTC, and ShapeShift. You will need to first purchase BTC or ETH, then exchange it for ANT. 

ANT is Ethereum-based, meaning you can store it on any Ethereum-compatible wallet. Some options include MyEtherWallet, MetaMask, ethaddress, Atomic Wallet, Guarda Wallet, Ledger Nano, and Trezor. Ledger and Trezor are particularly superior options in terms of security.

Final Words

Aragon can help usher in a radical shift in the structure and operations of organizations. By helping them integrate blockchain technology, we can start seeing the revolutionary features of transparency, immutability, and decentralization – taking form in actual day-to-day functions in organizations. 

Aragon has created a friendly and intuitive interface so that both non-technical and developers can derive and create value, optimize processes, and participate in the blockchain revolution. Aragon could very well be the next-gen solution for a decentralized economy. 

Categories
Cryptocurrencies

Introducing MaidSafeCoin: What is This Network All About?

We live in a world where we entrust our data to huge corporations who cannot be trusted to keep it safe. Take, for instance, the Facebook and Equifax debacles where data for millions of users suffered a massive breach of privacy. On the other side, governments have been accused of conducting mass surveillance on citizens. 

We live in a world where we entrust our data to huge corporations who cannot be trusted to keep it safe. Take, for instance, the Facebook and Equifax debacles where data for millions of users suffered a massive breach of privacy. On the other side, governments have been accused of conducting mass surveillance on citizens. 

We live in a world where we entrust our data to huge corporations who cannot be trusted to keep it safe. Take, for instance, the Facebook and Equifax debacles where data for millions of users suffered a massive breach of privacy. On the other side, governments have been accused of conducting mass surveillance on citizens. 

Events like these prove that your data is not safe in the hands of centralized systems. Data that you use to sign up for online services such as email, Know Your Customer (KYC), social media sites, etc. is not safe. Even information that you leave on such sites is not safe. 

Enter SAFE Network. This is a project that seeks to change how we interact with the internet by the use of high-level encryption, distributed technology, and an incentivizing system to protect users.

This article is an in-depth guide into the SAFE network project and its associated tokens, MaidSafeCoin, and Safecoin.

What is MaidSafeCoin?

MaidSafeCoin (MAID for “Massive Array of Internet Disks) is a token for the Safecoin network, a decentralized and privacy-focused network. Safecoin will be the currency for the SAFE network. The SAFE (Secure Access For Everyone) network is made of a contribution of users’ extra computing space and power as well as bandwidth. The idea behind SAFE is to provide decentralized storage for users all over the world. 

The SAFE network promises 20 things to users once it’s launched. It calls them “the fundamental principles.” Among others, it promises the following things: a serverless network, digital signing of all transactions, anonymized data, permanent data storage, and creation of multiple identities. 

The SAFE network itself is not blockchain-based, which allows it to scale faster than the traditional blockchain.

What is the Safe Network?

The SAFE Network is a way for people to access apps that put their data security above all else. Through the SAFE software, you can message, email, participate in social networks, store data, and video calls in a safe and secure manner. 

SAFE  employs advanced peer-to-peer technology that combines the spare computing power and data connection of network users, creating a large, global network. Users are incentivized to share their computing resources by being rewarded with the network’s built-in token known as Safecoin.

The SAFE network has been a work in progress since 2016. It is a project of MAIDSafe, a technology company based in Ayr, Scotland. The SAFE team is led by founder David Irvine, with a team that’s distributed across the globe. 

Why should I Use theSAFE Network?

Existing applications and programs cannot be trusted to protect your data, from selling your data to advertisers to controlling your data. On SAFE, your data remains completely under your control, as the network utilizes distributed resources, eliminating a single point of failure that would render your data vulnerable to hackers and other malicious parties. And by contributing your idle computing resources, you get compensated with cryptocurrency.

How Does Safe Network Work? 

Below, we’ll take a look at the functionalities of the SAFE Network. 

#1. Encrypted Data

When you upload your data on the SAFE network, it’s broken into chunks, hashed with a 256-bit hash algorithm, and encrypted. It is then randomly distributed across the network. The network also makes copies of the data so that even if a device storing it goes offline or down, you can still access it. 

Also, the SAFE network intuitively creates more copies of data that is in high demand. This means popular websites will have more copies of their data created, making them faster, as opposed to the current system where more copies would slow them down.

#2. Vaults

The SAFE Network is made of interconnected computers known as Vaults. A Vault is a software that connects/plugs a device to the Network. Collectively, Vaults oversee all the data on the network by managing encrypted user data distributed across the network. A farmer (more on that below) does not have the capacity to decrypt data that their Vault receives. This ensures the ultimate safety of user data on the SAFE network. 

Farmers on the network start their Vault level at 1, and their responsibility is to safeguard data in a random group as they move from group to group, their Vault level increases – a process known as node aging. Farmers are also subjected to a test known as ‘Proof of Resource.’ 

The test involves the network storing random pieces of data on your computer. If you look after them properly, you’re regarded as a valuable and trusted resource to be network, and your level is increased. If you don’t, your level is reduced. As nodes/vaults increase in age, so does the network gain more trust in them and consequently become ripe candidates for being assigned decision-making power in the network.

What is Farming? 

Users who provide their excess computing resources to the network (running a vault) are rewarded with Safecoin. The resources could be any of the following: storage, CPU, data connection, and time that allows the encrypted data to be stored and retrieved from their devices. 

Safecoin is given as an incentive for users to provide their resources to the network. These resources are storage space, CPU, bandwidth, and online time that enable the encrypted chunks of network data to be stored and retrieved from their computer. 

This process of operating a Vault and getting paid with Safecoin is called ‘Farming.’ 

The process of providing resources and receiving Safecoin in return is called ‘Farming.’ Each chunk of encrypted data is kept in a Farmer’s Vault, a data storage and management software on the device that not even they can read or access. 

What is Proof of Resource? 

Proof of Resource is the process by which the network determines a Vault’s ability to reliably store data and retrieve it as and when necessary. This ability is measured by the CPU speed, data connectivity, storage space, and time online.   

The proof of resource mechanism uses a model similar to a zero-knowledge proof. This means the network does not need to know the content of the data, but only if the data is being stored appropriately. 

What is Safecoin?

Safecoin is a token that’s automatically generated by the SAFE network. Unlike crypto networks that need miners, the SAFE network automatically confirms transactions. The token is transferred using the digital signature of its last owner. This process is ‘network atomic’ – meaning the network updates all copies to reflect the new transaction.

What is the MaidSafe token?

MaidSafeCoin is a proxy token that presides on the Omni network on the Bitcoin blockchain. It was sold in a pre-sale to raise funds for the SAFE network project. The token will be swapped for Safecoin on a 1:1 basis when Safecoin is launched. 

MAIDSafe’s Economics

As of Jun 03, 2020, MaidSafeCoin is trading at $0.137611, while ranking at #89. It has a market cap of $62, 276, 246, and a 24-hour volume of $145, 272. Its circulating and total supply is 452, 552, 412. MAID’s all-time high was $1.20 (Jan 02, 2018), while it’s all-time low was $0.004059 (Mar 08, 2015). 

Where to buy MAID 

In the early days, your options for acquiring MAID tokens were slim. Fortunately, the coin has now been listed on several popular exchanges, including Coinswitch, Changelly, HitBTC, Poloniex, and Bittrex. You will need to first buy a proxy coin such as Bitcoin or Ethereum and then exchange it for MAID. 

Safecoin currently offers a client wallet for Windows, Mac OS, and Linux, as well as a web wallet, paper wallet, and Android wallet. You can also use Omnicore, an offline wallet. 

Final Words

The SAFE network is yet to take full form, but once it does, it will be a total game-changer in the online storage, internet use, and personal data management space. People will no longer have their data stored and controlled by corporate machines and centralized government systems. Nor will they communicate in the fear that unauthorized third parties are watching their correspondences. SAFE will essentially hand back the power of the internet to the people.

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
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
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
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
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
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
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 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.

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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.

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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. 

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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. 

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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.

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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.

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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. 

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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 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 Videos

Ransomware Attack Kidnaps a City in Austria – Shady Business?

https://youtu.be/BvxxTOYqjpc

https://youtu.be/BvxxTOYqjpc


Ransomware Attack Kidnaps a City in Austria

A Malware team called NetWalker has launched a ransomware attack against Weiz, a village in Austria. The attack managed to affect the public service system and leak a part of the stolen data from Weiz’s building applications as well as inspections.
The hackers managed to penetrate into the village’s public network by using phishing emails related to the COVID-19 crisis.

COVID-19 used as bait to deploy the ransomware

The way that the NetWalker group was able to infect the servers was by sending emails with fake information about the coronavirus, which Weiz employees clicked and therefore triggered the ransomware.
Panda Security, a company dealing with this case, claims that the ransomware used in this attack is one of the newer versions of ransomware which spreads using VBScripts. If the infection succeeds, it spreads throughout the entire network to which the infected machine is connected.

Weiz isn’t just a random village

 

While Weiz is a small village, it is considered the economic center of the region. It is the place where several big companies, such as the automaker Magna, as well as construction companies Strobl Construction and Lieb-Bau-Weiz, are established. This may indicate that the attack wasn’t completely random but instead directed towards this village in order to complete a specific objective.

Categories
Crypto Videos

Tether Talks About Printing USDT – What Does This Mean?

https://youtu.be/Ef4ggfwBDbM

https://youtu.be/Ef4ggfwBDbM

Tether Talks About “Printing” USDT

The CTO of Tether spoke about the popularity of its Ethereum-based asset and claimed that it was the reason why the company never burned a single USDT token.
The recent report that came from Flipside Crypto concluded that Tether never even tried to practice burning its tokens, additionally saying:
“We can also see that tokens never go to the “burn” category, which means that no USDT supply was destroyed throughout the course of April. Looking at the full USDT history on Ethereum, we found that tokens have never been burned.”

USDT’s side of the story

Paolo Ardoino, the CTO of both Tether and Bitfinex, explained that the company is mindful of how it works, and it does practice burning its tokens, but that it has so far done it only on the Omni and Tron networks. When it comes to the Ethereum network, Ardoino said that the company holds authorized but unissued and unbacked ERC20 tokens in their inventory.
He also stated that Ethereum had been the most popular blockchain in recent months, which caused the demand for ERC20-based USDT to rise exponentially.

Conclusion

While many condone this type of behavior and encourage burning and then reissuing new tokens, Ardoino said that the outcome is the same. However, many people who touched upon this topic believe that burning and reissuing USDT tokens could only help improve transparency and reduce skepticism, even if the outcome is the same in the end.

Categories
Cryptocurrencies

What is IOTA All About? 

Technology makes our lives easier. And as it is now, we might be at the cusp of a new age as far as technological advancements are concerned. In the very near future, it’s highly probable that the mundane devices around us will be interconnected with each other and to the internet. Think of your fridge, car, oven, car, shower, coffee maker, etc.

Technology makes our lives easier. And as it is now, we might be at the cusp of a new age as far as technological advancements are concerned. In the very near future, it’s highly probable that the mundane devices around us will be interconnected with each other and to the internet. Think of your fridge, car, oven, car, shower, coffee maker, etc.

Technology makes our lives easier. And as it is now, we might be at the cusp of a new age as far as technological advancements are concerned. In the very near future, it’s highly probable that the mundane devices around us will be interconnected with each other and to the internet. Think of your fridge, car, oven, car, shower, coffee maker, etc.

These devices will be able to work without needing human intervention. In other words, we’ll be able to derive more value from the things around us, thanks to them being connected to the internet. This phenomenon is called the Internet of Things (IoT). 

It would be ideal if we could actualize IoT without any of the current impediments that face it – with two of the major ones being security and scalability. There is a valid concern that an IoT network would be a security disaster as far as information security, data privacy, and cyber safety are concerned. 

IOTA is a distributed ledger platform that seeks to address the issue of scalability and security for the Internet of Things. What exactly is IOTA, and what does it offer the IoT economy and the distributed ledger space?

What is IOTA?

IOTA is a cryptocurrency project created and optimized for the Internet-of-Things (IoT). The IOTA team envisioned an IoT – already a bold vision by itself – that is powered, secured, and driven by blockchain. David Sostebo, the co-founder of IOTA, wrote that ” IOTA was initiated with a very clear and focused vision of enabling the paradigm shift of the Internet of Things… through establishing a de facto standardized ‘Ledger of Everything.’ 

IOTA diverts from the traditional blockchain model adopted by the majority of cryptocurrencies. Instead, it uses a dedicated distributed ledger platform called Tangle – itself an implementation of a computer science and mathematical concept known as Directed Acyclic Graphs(DAG). Tangle’s consensus mechanism works this way: for new transactions to be valid and before it’s added on the public ledger, it must be validated by the two lastly entered transactions.

This removes the dependence on miners to validate transactions, thus allowing for more scalable transactions (by reducing network congestion and network delays) as compared with traditional blockchains such as Bitcoin’s and Ethereum’s. 

How Does IOTA Work? 

The idea behind IOTA is to integrate blockchain solutions to the Internet of Things. IoT is not a complicated concept or a fantastical idea belonging to sci-fi movies. As a matter of fact, it’s already part of the world’s economy – think devices that monitor factory conditions, driverless cars, smart homes, smart lighting, smart pet care, etc. Research indicates that in 2017, IoT devices had grown up to 8.4 billion, with an even more aggressive growth projected for the future. 

How IOTA Works | Forex Academy

IOTA’s founders believe that for IoT to realize its highest potential, network devices should share and utilize resources more efficiently. The idea is for devices to acquire more resources, such as internet bandwidth, power, storage – only when they need them, and to sell excess or unwanted power at any given time. 

Even the smallest IoT network’s implications would be tens of transactions every second, as devices relay info between and across each other. Such volumes of transactions are beyond the capability of the current blockchain model. For instance, the Ethereum blockchain can handle 15 transactions per second, while the Bitcoin blockchain can handle 7. This results in high transaction fees for priority transactions, while the rest of the transactions can take hours to be completed. As such, the blockchain, as it is, is simply not scalable enough to support the IoT economy. 

IOTA and Scalability

Upon completion, IOTA anticipates having billions of interconnected nodes on its network. To this end, its processing power is designed to expand as more nodes join the network. Tangle’s consensus mechanism dictates that each transaction is linked to two other transactions – in the end, creating a web of transactions based on a verification history. As time goes on, every transaction becomes linked to the ones that verified it. This simple model removes the need for a blockchain. 

In terms of computing power and securing the network, each time a new device submits a transaction – it contributes to the network in this way. Again, this removes the need for block miners. 

IOTA and Transaction Fees

IOTA is also fee-free. As new devices contribute computing power when they submit transactions, the only cost they expend is the electricity they use to confirm the two previous transactions. This essentially makes IOTA free to use. 

This absence of fees is intentional. The IoT network will comprise devices transacting with each other at fractional costs and a very high frequency. Levying charges on such transactions would render micropayments impractical. To serve as the backbone of the IoT economy, IOTA has to be a free network. 

34% Attacks

As you already know, the blockchain is vulnerable to what is known as “the majority attack.” This describes the event when a party manages to control more than 50% of the network (51% attack). In such an event, the attacker can perform malicious transactions, stop miners, and so on. For its part, Tangle will be vulnerable if an entity were to control 34% (over ⅓) of the network’s computing power. 

The IOTA network would be particularly vulnerable to such an attack when it’s still a small network with fewer nodes (i.e., now). It’s easier for a bad actor to gain control of 34% of the network at this time. To curb such an attack, the network is utilizing a Coordinator that synchronizes data across all nodes – cushioning the network against an attack. 

The coordinator node is necessary to protect the early Tangle, and the network plans to get rid of it when it becomes robust and resilient enough. But that also means that the platform is not exactly decentralized right now.

In May 2019, IOTA announced the plan to kill the coordinator and implement ‘Coordicide’ – a new procedure that would make the network decentralized. The protocol, however, is yet to be implemented. 

Who is behind IOTA? 

The IOTA platform was launched in 2015 by David Sønstebø, Dominik Schiener, Sergey Ivancheglo, and Serguei Popov. Sønstebø and Schiener both serve as co-chairman of the board of directors. Ivancheglo departed from the organization’s foundation in June last year in seemingly amicable terms, but as the IOTA community came to discover, there was a ton of intrigue going on behind the scenes. See the full team here. 

Concerns About IOTA 

IOTA has faced criticism for its use of several new technologies instead of tested and tried technologies. Technology experts question if IOTA will really work to scale and if it will stand up to attacks even after more nodes join the network. 

Michigan University’s Digital Currency Initiative published a paper outlining serious flaws in Curl, the network’s hashing function. After testing the hash function, they discovered it produced the same output when fed with two different inputs – a situation known as Collision and one that denotes a faulty hash code. The team added that a malicious actor could have manipulated the flaw to bring down Tangle or steal user funds. The IOTA team has since addressed the loophole.

Ethereum’s core developer Nick Johnson published a scathing article in which he delineated why he thought IOTA’s platform lacked “good technical judgment,” disregarded “cryptographic best practices,” is “a bad actor in the open-source community,” and that its integrity guarantees lack rigor.”

Tokenomics of IOTA

As of May 27, 2020, IOTA was trading at $0. 195231, at a market position of #24 and with a market cap of $542, 649, 121. The coin had a 24-hour volume of $14,089, 509. IOTA’s circulating supply is 2, 779, 530, 283, with a total and maximum supply of the same value. The currency’s all-time high was $5.69 (December 19, 2017), while its all-time high was $0.079620 (March 13, 2020). 

Conclusion

The IOTA project takes the progressive idea of IoT and proposes to make it even better with distributed ledger solutions. For now, the project is far from perfect, or even near full-blown implementation. If everything goes as planned, IOTA will be an unstoppable idea, not just in the distributed ledger space, but in the world.

Categories
Crypto Videos

Greyscale Are Buying All The 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 Supply up!

https://youtu.be/llsRx510Iy4

https://youtu.be/llsRx510Iy4

Grayscale Stocking up on Bitcoin Like Never Before

Independent researcher Kevin Rooke made an estimate that Grayscale Investments ramped up its Bitcoin accumulation to an immense rate. The Cryptocurrency fund manager seems to be accumulating Bitcoin at a rate equivalent to 150% of the newly-mined BTC since the halving.
Rooke’s research shows that Grayscale has added 18,910 Bitcoin to its Investment Trust since the halving. To compare, only 12,337 Bitcoins have been mined since the halving on May 11.
Binance CEO Changpeng Zhao reposted this info chart, saying that there isn’t enough new Bitcoin supply to go around, even just for one guy.

Grayscale is rapidly absorbing Bitcoin supply

Rooke’s research estimates that Grayscale bought Bitcoin at a rate equal to one-third of the new supply during Q1 of 2020, therefore accumulating 60,762 BTC over 100 days. As a result, Grayscale’s Q1 average weekly investment into its trust increased 800% year-over-year and reached $29.9 million.
After Grayscale founder Barry Silbert said, “just wait until you see Q2,” the investment fund is now purchasing nearly double the coins per day, while the supply got reduced by half. This brings Grayscale’s daily average to 1,112.35 Bitcoin per day, which represents almost 150% of the daily mined coins.

Grayscale vs. CBDC’s

A recent report published by Grayscale show’s company’s distaste for people comparing Bitcoin to central bank-issued digital currencies.
The report clearly stated that CBDC’s are not something that can be viewed as a replacement to cryptocurrencies such as Bitcoin, but rather as a representation of departure from the true intent of cryptocurrencies, which is decentralized protocols. While CBDC’s can upgrade the payment infrastructure, Bitcoin is trying to upgrade money itself.

Categories
Crypto Videos

Chinese Citizens Are Now Able To Inherit Crypto!

https://youtu.be/EYU0MVY2L5M

https://youtu.be/EYU0MVY2L5M

Citizens of China Now Able to Inherit Cryptocurrency

The Thirteenth National People’s Congress and Chinese People’s Political Consultative Conference has ended on May 28, bringing cryptocurrency holders an interesting feature. On that day, the parliament passed a new civil code, which brings China a legislation package that includes protecting civil rights such as inheritance, property, marriage, personality, contract, and infringement. What’s important to crypto users and holders is how the code was worded and what was implemented into it.

The new code states that when a natural person dies, their legacy is the personal legal property left by them. A Renmin University professor, Lixin Yang, said that this could be translated into the words: “internet property and virtual currency will be inherited.”
Dovey Wan, Primitive Ventures founding partner, has recently made a tweet stating that Bitcoin users should pay more attention to their Bitcoin private keys, regardless of what the new law says.

The new inheritance law that allows citizens of China to pass on their cryptocurrency, as well as other virtual assets, to their heirs will become active on January 1, 2021. This is seemingly just the start of China’s efforts to regulate Bitcoin, as they clearly stated that cryptocurrencies should be something guided by the law.

Categories
Crypto Daily Topic

6 Online Stores Where You can Buy Games with Bitcoin

The number of service providers that accept Bitcoin grows day by day. Nowadays, you can use Bitcoin to pay for all manner of things, from furniture to food to laptops to college. And now, Bitcoiners who are also gaming enthusiasts have a reason to celebrate.

Pay with Bitcoin_Forex Academy

The number of service providers that accept Bitcoin grows day by day. Nowadays, you can use Bitcoin to pay for all manner of things, from furniture to food to laptops to college. And now, Bitcoiners who are also gaming enthusiasts have a reason to celebrate.

The number of service providers that accept Bitcoin grows day by day. Nowadays, you can use Bitcoin to pay for all manner of things, from furniture to food to laptops to college. And now, Bitcoiners who are also gaming enthusiasts have a reason to celebrate.

While some gaming vendors allow you to purchase games directly, they are very far and between. Some platforms have stepped in to fill this gap – enabling you to buy your favorite games with zero hassle. 

Below are the places where you can buy games with Bitcoin:

1. Bitrefill 

Bitrefill is a marketplace that allows you to purchase gift cards and mobile refills from more than 1650 businesses in 170 countries – and pay safely, privately, and quickly with Bitcoin and other cryptocurrencies. With the gift card, you can purchase what you want – in this case, games – from your platform or store of choice.

The platform allows you to purchase video game gift cards for the following stores: 

  • Steam
  • Amazon
  • PlayStation
  • ROBLOX
  • Nintendo
  • Xbox
  • Apple app store
  • Google Play
  • Wargaming.net
  • RuneScape

On the Bitrefill website, select the gift card for your desired game, and how much amount you wish to buy. Then, choose your preferred paying method. Bitrefill supports payment via Bitcoin, Litecoin, the Lightning Network, Dash, Dogecoin, and Ethereum. There is also the option of paying for your gift card from your Coinbase account.

After you complete your transaction, Bitrefill sends you the gift card code. The platform also allows you to purchase non-digital games such as console, and so on. 

2. JoltFun

JoltFun allows you to purchase any of 1000 games across several popular gaming platforms – via Bitcoin and the Lightning Network. Some of the popular game choices include Assetto Corsa, Gears of War 4, Grand Theft Auto V GTA 5, Overwatch, PlayerUnknown’s Battleground, World of Warcraft, The Elder Scrolls and random picks such as One Final Chaos, Cossacks, and American Conquest Park, Azuran Tales, Quarantine, Total War: Warhammer – Call of the Beastmen. 

On JoltFun, you can purchase your video game directly and get to playing already. You can choose games from: 

  • Origin
  • Battle.net
  • PlayStation
  • Steam
  • Rockstar Social Club (Grand Theft Auto and Red Dead Redemption)
  • UPlay
  • Xbox

JoltFun lists all the games that you will find in the actual store. When you choose a game, JoltFun sends you a Bitcoin invoice, after which you have two hours to complete the transaction.

3. Keys4Coins

Keys4Coins allows you to buy gift cards that you can use to buy games from your favorite platforms, as well as purchase games directly from them (Keys4Coins) with cryptocurrencies. You can access your favorite titles including Atlantis 3,  Atlantis 5: The Secrets of Atlantis, Bulletstorm, Corsairs Gold, Curse – The Eye of Isis, Destination Treasure Island, Disciples II: Dark Prophecy,  Dracula2 – The Last Sanctuary, Dracula 5- The Blood Legacy, Empire Earth, Evil Genius, Haegemonia – The Solon Heritage, Knights of Pen and Paper and many more from either of these platforms: 

  • Steam
  • Origin
  • Uplay 
  • Xbox Live
  • PSN
  • Battle.net
  • GOG.com

You can also purchase web hosting crypto conversion services and antivirus programs. Keys4Coins supports payments via Bitcoin, DASH,  Dogecoin, Vertcoin, Monero, Bitcoin Cash, and Litecoin. 

4.  GamesPlanet

GamesPlanet is a video games website that offers some of the most popular titles across a range of categories, including action, adventure, roleplay, MMO, strategy simulation, arcade and indie, and sport. Some of the most popular titles include Quantum Break, Call of Duty: Modern Warfare, Alan Wake, Darksiders Genesis, Hunt: Showdown, Two Point Hospital, Ori and the Blind Forest, Stellaris: Lithoids Species Pack, Crusader Kings, Call of Cthulhu, Sekiro: Shadows Die Twice and more. 

GamesPlanet currently accepts Bitcoin payments via  BitPay. First, you need to set up an account on BitPay, after which you can come back and purchase any game of your choice.

5. Purse.io

Purse.io is a service that allows Bitcoin holders to indirectly purchase products and services from Amazon. The service works by bringing together bitcoin holders and Amazon gift cardholders. If you are a Bitcoin holder and wish to purchase something on Amazon, you can swap your bitcoins for the gift card – whereby the cardholder will make your purchase on your behalf. 

Of course, you can utilize the platform to access the countless number of games on Amazon. The most popular providers are on Amazon, including Nintendo, PlayStation, Xbox, Square Enix, and more. 

Amazon hosts fan favorites such as Star Wars Battlefront, Star Wars Jedi, Grand Theft Auto, Halo 5: Guardians, Naruto Shippuden, Disney Infinity, and so on.

6. Moon

Moon is a browser extension available for Chrome, Opera Mini, and Brave Browser. It supports fast and seamless payments via Bitcoin, Litecoin, Ether, Bitcoin Cash, and the Lightning Network. The extension notifies you whenever there is an option for paying with Bitcoin. 

Speaking to CoinDesk, Moon CEO said: “(The extension)  will pop up a QR code and it will have the lightning invoice, which you could also copy and paste if you can’t use the QR code for some reason, and you’ll be able to pay with your favorite lightning wallet. “

Moon supports the purchase of games from various platforms,  including Amazon. 

Final Thoughts

Are you a Bitcoin lover and a gaming enthusiast? If that’s your combi, then you’re right at home with these platforms. Even Litecoin, Bitcoin Cash, Monero, Ethereum, Vertcoin, DASH, and Dogecoin holders will strike luck. Get to browsing now and pick your selection. 

Categories
Crypto Videos

Reddit’s Co Founder Says We Are In Crypto Spring! #Buy

https://youtu.be/i3llyrE0CTg

https://youtu.be/i3llyrE0CTg

Reddit’s Co-Founder Says We Are In ‘Crypto Spring’

Alexis Ohanian, Reddit co-founder, has described the cryptocurrency ecosystem as a sector currently in the “crypto spring,” emphasizing the application of the technology as well as the talent working on it.

His interview with Yahoo Finance revealed his positive outlook on the cryptocurrency industry, especially in terms of top-tier engineers, designers, product developers, etc. that are building real solutions on top of this technology.
“We’re seeing top-tier talent building on this infrastructure, and that to me is the most interesting part,” he said.

Crypto won’t go away

Ohanian also stated that he had held a portion of his wealth in cryptocurrencies for quite some time now. When asked about the most recent price development, he said that he still feels pretty good about his holdings and that he doesn’t want to change much of it. He also described cryptocurrencies as a “prudent hedge.”


Reddit and Cryptocurrencies

Reddit has launched its cryptocurrency-based Community Points reward system on the Ethereum testnet called Rinkeby, with the intention to move to the mainnet by the end of 2020. Reddit is yet another company that is slowly but surely accepting cryptocurrencies as a concept rather than shying away from it due to the regulatory uncertainty.

Categories
Crypto Videos

Russia Is Outlawing Crypto! Dasvidaniya!

https://youtu.be/kYG3LetUAj0

https://youtu.be/kYG3LetUAj0

Russia Making Crypto Illegal?

 

Russian lawmakers have recently suggested punishments of up to 2 million rubles (around $27,800) as well as seven years in prison for illegal crypto or digital asset turnover. The law is not set in motion yet, but the government is considering it.

How bad are the fines?

The punishments suggested in the bill are on a sliding scale that starts from around $300 for using digital or cryptocurrencies for transacting goods and services, all the way up to 2 million rubles and seven years in prison for organizing illegal digital or cryptocurrency turnover.
They also proposed a penalty for buying digital assets for cash on Russian soil, as well as for transferring funds from cryptocurrency to any Russian bank accounts.

What will crypto companies do?

Yuri Pripachkin, president of the Russian Association of Crypto-economics and Blockchain, said that the new package of laws would act as a complete ban on cryptocurrency. By doing that, Russia will stop benefiting from this technology anymore. He believes that if the new rules were to be put in motion, many companies would simply move out of Russia and relocate to neighboring countries with a better approach towards cryptocurrencies.

While the companies have the opportunity to move from Russia to other countries that are more crypto-friendly, the Russian population that uses cryptocurrency will be cut off from the cryptocurrency world.

Categories
Crypto Exchanges

Bitmex Vs. Deribit Vs. Bybit: Which one is the Best Crypto-derivative Exchange? 

Cryptocurrency derivatives are an ideal investment option for individuals looking to generate more returns from the crypto market. Although they appeal most to experienced traders, trading derivatives is the less risky alternative to the standard cryptocurrency trading. 

Crypto Exchange_Forex Academy

Cryptocurrency derivatives are an ideal investment option for individuals looking to generate more returns from the crypto market. Although they appeal most to experienced traders, trading derivatives is the less risky alternative to the standard cryptocurrency trading. 

Cryptocurrency derivatives are an ideal investment option for individuals looking to generate more returns from the crypto market. Although they appeal most to experienced traders, trading derivatives is the less risky alternative to the standard cryptocurrency trading. 

Derivatives are used to hedge against risks or to speculate the price of the underlying asset. Investors are, therefore, protected from price fluctuations since they only buy the asset at the fixed price stipulated in the derivative contract. Additionally, investors don’t have to worry about asset theft/loss as they aren’t required to hold the underlying asset itself. 

Given the intricacies of derivative trading, it’s highly recommended to choose a platform that’s uniquely designed to support this type of crypto trading. That said, Bitmex, Deribit, and Bybit are among the most preferred derivatives trading platforms by investors.

In this comparative guide, we pit them against each other and reviewed their ease of use, security, and liquidity to find out which one gets the job done efficiently:

Platform Stability and User Experience

When choosing a crypto derivatives trading platform, you will want to vet its ease of use and the complexity of its sign-up process. Avoid platforms with a complex user interface as they cam prove intimidating, especially to first time users. 

The sign-up process for the three platforms is rather simple since all you require is a username, password, and country of residence. Bitmex doesn’t, however, process registration requests from residents of such countries as the US, Seychelles, Cuba, Iran, Syria, among others. Of course, the geo-restriction can be bypassed using a strong VPN to hide the IP address. With the other two platforms, Deribit and Bybit, users from anywhere around the world can sign up without any restrictions. 

Bitmex is best operated on its official website thanks to its smart and simple layout. What’s better, users can customize the web layout and change such features as themes, text colors, and integrate different trading tools. The platform, however, has neither developed its own mobile app nor optimized its website for mobile use. Deribit, on the other hand, has a user-friendly mobile app, which is a good compensation for its relatively clunky website. 

Bybit wins on all fronts as far as user-friendliness is concerned. Their desktop user interface is easy to navigate and rarely experiences downtimes, which is a common case with Bitmex. Recently, Bybit released its own app available to both iOs and Android users.  

Liquidity 

Liquidity in derivatives trading entails a lot more than just cash flow and the ability to sell options/futures in the shortest time possible. However, this is not to diminish the importance of these two factors. In fact, the two are an integral part of any trading platform since they are an indication of a healthy supply and demand. 

High liquidity for derivatives allows for ultra-tight bid-ask spreads and reduced risk of slippage when executing orders. For the derivatives market to achieve high liquidity, it must have high trading volumes and create room for intense price competition between sellers and buyers.  

Bitmex boasts of higher trading volumes compared to both Deribit and Bybit. In fact, as of this year, the exchange posted higher trading volumes than other top exchanges that process standard cryptocurrency trading. Due to its high liquidity, Bitmex has the tightest spread and least slippage, meaning your orders will always be filled just at the right amount. On top of that, the exchange offers a variety of futures contracts, including BTC futures, ETH futures, ETH perpetual, XRP futures, LTC futures, ADA futures, TRX futures, EOS, and Bitcash futures. This further increases its trading volume,  increasing liquidity. 

Deribit trades an upward of 0.5 billion daily, so its liquidity is relatively high. Perhaps if the exchange offered more trading options than just BTC futures and BTC perpetual, its liquidity would increase substantially. Launched two years ago, Bybit often struggles with liquidity issues. But the team behind this exchange, which comprises of leading crypto trading experts, is continually working to increase the trading volume and liquidity. Moreover, as the exchange gains traction in the market, it’s liquidity is bound to increase over time.

Security

Exchanges often fall victim to cyber hacks resulting in loss of investors’ funds. When choosing an ideal derivatives trading platform, you want one that prioritizes the security of your funds. 

Since it was established in 2014, Bitmex has grown to become one of the largest exchanges in the market. Due to its size, the platform is arguably a more attractive target for hackers. Impressively though, the exchange has never been hacked for the six years the platform has been active, an achievement that can be attributed to its high-level security measures. 

The platform stores investor’s funds and crypto reserves in an offline and multi-signature wallet. About 95% of the funds are stored in a cold wallet to deter theft by cybercriminals. The remaining amount is stored on the platform’s hot wallet to facilitate daily transactions.

Additionally, Bitmex allows users to secure their accounts with the Google-powered two-factor authenticator. 

In its short life, Bybit has managed to meet the industry-standard security protocols. Similar to the other two, Bybit maintains cold wallets where the bulk of the clients’ funds are stored. The rest of the funds are stored in a hot wallet to facilitate daily transactions. A multi-signature system is employed every time the funds are moved between the cold wallet and a hot wallet. 

The three exchanges are arguably at par as far as security is concerned. But Bitmex takes the lead due to its once-per-day withdrawal policy, which reduces the risk of hackers’ interception. 

Conclusion 

The fact that the three exchanges are exclusively designed for derivatives trading makes them ideal for any investors looking to get into crypto futures contracts. However, Bitmex has the upper hand, having laid a strong foundation on all fronts since it was established. At the same time, both Deribit and Bybit give Bitmex a good run for its money, an indication that they can be trusted by investors.

Categories
Blockchain and DLT

What Are The 5 Key Challenges Facing Blockchain Today?

Blockchain is one of the most disruptive technologies of the last decade, from powering cryptocurrencies to dizzying heights of success to industry after industry racing to incorporate it into their processes.

Challenges facing Bitcoin | Forex Academy
david-shares-4_41-79dHvE-unsplash

Blockchain is one of the most disruptive technologies of the last decade, from powering cryptocurrencies to dizzying heights of success to industry after industry racing to incorporate it into their processes.

Blockchain is one of the most disruptive technologies of the last decade, from powering cryptocurrencies to dizzying heights of success to industry after industry racing to incorporate it into their processes.

It would be ideal if blockchain was a problem-free technology providing problem-free solutions. But this is not the case.

These are the core five issues that are the bane of blockchain’s current existence: unsatisfactory privacy and security; and regulatory, legal, and ethical issues.

1. Security Issues

One of the defining features of public blockchains is their decentralization. This means that they are not controlled, nor can they be shut down by anyone. Decentralization helps keep the blockchain secure since thousands of computers from the globe are participating in maintaining and securing the network. Even if someone managed to shut down some of the computers, the rest would carry on operating the network.

Bitcoin decentralization_Forex Academy

But it is still this decentralization that’s potentially an Achilles heel for the blockchain. While it’s safer than a centralized network, which has a single point of control – and hence a single point of attack, the decentralized model is not perfectly secure. A public blockchain is vulnerable to a 51% attack.

A 51% attack describes an occasion when an entity or a group of people manages to take control of over 50% of a blockchain’s computing power. This would allow them to tilt the blockchain’s operations in their favor. For instance, they could double-spend coins, block transactions, or stop miners.

Smaller blockchains, in particular, are more susceptible to attacks. This is because they have fewer miners securing the blockchain, making it easier for an entity to take control of a bigger percentage of the network’s computing power. For instance, for the IOTA blockchain, a bad actor would only need to take control of 34% of the total network’s hash power.

Luckily, such an attack is extremely rare and unlikely. It is prohibitively expensive for someone to attempt to take control of over 51% of a blockchain network. The sheer financial and time resources needed to pull it off are enough to make one perish the thought.

2. Privacy Issues 

Transparency is another defining feature of public blockchains. The history of transactions is available for everyone to see. While your personal credentials are not made public (or even required for you to conduct a transaction), your public address can be used to link back to you. This state is known as pseudonymity.

In an era of ubiquitous internet when privacy is highly valued, pseudonymous transactions do not exactly fly with many users. To address this problem, several privacy-oriented blockchains have sprung up to fill the gap. Examples include Monero, ZCash, Komodo, and DASH.

3. Legal Issues

While blockchain technology has increased in popularity and is being embraced across industries, its legal standing is still very much grey. Some of the legal issues are as follows:

  • Decentralized Autonomous Organizations (DAOs): these are organizations that are much like traditional organizations in terms of function, except they are governed by computer code, and commands are executed by computers without the intervention of humans or central authorities. But let’s say, for example, in the event of a conflict, how will it be resolved? Who bears responsibility?
  • Smart contracts: Blockchain-based smart contracts are a new kind of contract that is self-verifying and self-executing. This removes the need for costly intermediaries and saves time. Given that smart contracts are pure lines of code, it’s debatable whether they can really be considered as complete contracts, at least in the traditional sense. It’s all well and good if all parties meet their end of the bargain. But in the event of a dispute, would a smart contract be legitimate in the eyes of the law? At the very least, ensure that you have a conflict resolution procedure encoded in the smart contract.
  • Leaving a blockchain: Let’s imagine you’ve been using a blockchain to record sensitive data such as your company’s financial records or employee data. What happens if you stop using the service, and you do not possess copies of the ledger? Before you sign up for a blockchain service, ensure there are provisions in place to ensure that a blockchain service provider surrenders your records back to you at the end of the contract.

4. Regulatory issues

Cryptocurrencies were the first application of blockchain. They are defined by features such as decentralization, distributed, and immutability. This decentralized feature does not particularly fly with the majority of governments and regulators all over the world. This creates a state of regulatory uncertainty.

Bitcoin Regulation | Forex Academy

Governments have taken different approaches to this. Some governments such as Bolivia, Colombia, Iran, Algeria, Pakistan, Bangladesh, and Ecuador have entirely banned cryptocurrencies. Other countries, such as the United States, the UK, Canada, Slovenia, and South Africa, have accepted them. Acceptance can mean anything from cryptocurrencies being accepted as means of payment but not as legal tender, to them actually being used as legal tender – like is the case in the Marshall Islands.

Too strict regulation can stifle innovation. On the other hand, a total lack of regulation could create undesirable circumstances such as market manipulation and unlawful use.

5. Ethical Issues 

Blockchain gives rise to some ethical issues, with the most problematic ones being 1) its environmental impact and 2) criminals taking advantage of it.

Blockchain networks utilize cryptography to maintain security and process transactions. The amount of power that goes into this is jaw-droppingly enormous.

Check out the statistics:

  • If bitcoin was a country, it would be the 41st highest electricity-consuming country in the world.
  • Every year bitcoin produces 34.76 megatonnes of carbon dioxide, similar to that of Denmark.
  • Just one bitcoin transaction consumes more energy than 100, 000 Visa transactions, and as much as a US household consumes in 22 days.
  • The estimated global mining costs for Bitcoin is $1.5 billion.
  • Bitcoin mining uses more power than 12 states (Alaska, Hawaii, Idaho, Maine, Montana, New Hampshire, New Mexico, North Dakota, Rhode Island, South Dakota, Vermont, and Wyoming).

In an era when environmental concerns are more relevant than ever, the staggering use of energy is alarming. For this reason, crypto developers need to come up with more environmentally friendly ways of releasing new coins and processing transactions.

Then there is the issue of blockchain enabling criminal activities such as drug peddling, child trafficking, sex trafficking, tax evasion, money laundering, and so on. Cybercriminals take advantage of the pseudonymous and anonymous nature of cryptocurrencies to engage in such activities. Even cyber attackers want to be paid in cryptocurrency and not other types of money.

Final Words

Blockchain is a powerful technology that has revolutionized certain facets of our society. However, at this stage, the world has to contend with its less-than-perfect implications. While some of the issues require a shift in attitude, others are inherently blockchain’s own. Whether any of these is set to change in the future is anyone’s guess.

Categories
Crypto Daily Topic

Where to Discuss Bitcoin: Top Bitcoin Forums You Should Join

Bitcoin is not just a currency. It’s a revolution that has inspired an entire movement of believers, enthusiasts, and diehards. These groups of people have carved out spaces online and offline to exclusively talk and discuss everything about Bitcoin from the present, to the future, to prices, market trends, and everything in between.

Top Bitcpoin Forums to join | Forex Academy
evangeline-shaw-4BCVE3C6K_o-unsplash (1) (1)

Bitcoin is not just a currency. It’s a revolution that has inspired an entire movement of believers, enthusiasts, and diehards. These groups of people have carved out spaces online and offline to exclusively talk and discuss everything about Bitcoin from the present, to the future, to prices, market trends, and everything in between.

Bitcoin is not just a currency. It’s a revolution that has inspired an entire movement of believers, enthusiasts, and diehards. These groups of people have carved out spaces online and offline to exclusively talk and discuss everything about Bitcoin from the present, to the future, to prices, market trends, and everything in between.

Anyone – from dilettantes to serious investors, to developers, to entrepreneurs, to startups can join and participate in these spaces.

In the highlighted places, feel free to join fellow Bitcoiners and engage in everything Bitcoin.

Online

Online places include social media, IRC channels, and forums. Below are links to the discussion boards on those places.

Forums

  • Bitcointalk – This is currently the biggest bitcoin forum. It was founded by Satoshi Nakamoto – the creator of Bitcoin.
  • Bitcoin.com — This is a forum formed by the Bitcoin.com news website.
  • Bitcoin Garden – This is a small Bitcoin forum, but fast establishing itself in the space
  • Bitcoinforum – One of the ‘mainstream’ Bitcoin forums, and associated with the bitcoin.org website
  • Bitco.in Forum – This is a forum where developers, academics, and business-minded Bitcoiners gather to share ideas and promote Bitcoin
  • CryptoCompare Bitcoin page – This is a forum by CryptoCompare where users can discuss and monitor prices, market volumes, and trends in the Bitcoin market.
  • Investing.com Bitcoin page – This is a page on investing.com dedicated to Bitcoin trading and investing.
  • StackExchange Bitcoin page – This is a Bitcoin dedicated page on the StackExchange website, keeping with the question and answer formula for cryptocurrency enthusiasts.

Reddit

 

Bitcoin Reddit_Forex Academy

On Reddit, there are several Bitcoin dedicated pages.

  • r/Bitcoin – This is the main Bitcoin subreddit.

Others include:

  • r/BitcoinMarkets – A subreddit for Bitcoin trading.
  • r/BitcoinStocks – A subreddit for discussions about Bitcoin stocks.
  • r/Jobs4Bitcoins – A subreddit where individuals can provide their talents and skills in exchange for Bitcoins
  • r/BitcoinMining – A subreddit where users can discuss everything mining
  • r/BitMarket – A  subreddit where people can sell and buy Bitcoin
  • r/BitcoinSerious – A subreddit for ‘reasonable discussion relating to Bitcoin’
  • r/BitcoinBegginers – A subreddit where Bitcoin beginners can learn things and freely ask questions
  • r/LocalCommunities – A list of the major Bitcoin communities, per country

IRC Chat

Below is a list of Bitcoin dedicated channels on Freenode:

  • #bitcoin – a general chat for all things Bitcoin
  • #bitcoin-dev – a chat dedicated to technical and development issues for Bitcoin
  • #bitcoin-otc – an over-the-counter Bitcoin exchange
  • #bitcoin-market – a chat dedicated to live quotes about the market
  • #bitcoin-mining – a chat for all things crypto mining

There are more Bitcoin-related IRC chats that you can find here. These chats include Bitcoin projects, local communities for different countries, mining-related communities, more communities on Bitcoin exchanging and trading, and more Bitcoin and crypto-related communities.

Telegram

Bitcoin Telegram_Forex Academy

The following are some of the most popular Bitcoin-related Telegram channels:

Social Networks

The following links will lead to Bitcoin discussion places on these social media forums:

Offline

Bitcoin discussions and related engagements do not just happen on the internet. In the physical world, there is a lot of Bitcoin-related conferences, events, meetups, and so on.

By joining these places, you can increase your knowledge for Bitcoin – from its technicalities to trading to price behavior. It’s also one way to take part in the Bitcoin movement.

Categories
Crypto Videos

The BTC Halving Has Cost Us! But For How Long?

 

 

Bitcoin Halving Aftermath – What Comes Next?

The 2020 Bitcoin Halving that happened in May did not go quite as well as some people expected. While most crypto enthusiasts were very optimistic about the aftermath of the halving event, things turned out to be far from good. A substantial number of miners stopped mining on their equipment as the halved reward made them unprofitable. As a consequence of fewer miners working, transaction fees became considerably higher, the hash rate managed to decrease by up to 40%, while the new blocks are generated at unimaginably low speed.

Hash rate

One of the most significant post-halving trends is the decreased hash rate, The mining profitability of the older generation mining units has dropped substantially (or even turned into negative) as the block rewards got halved. At the moment of writing, an Antminer S9, which is a previous generation mining unit, is estimated to generate a negative $2 per day.

Block time

With a third of the miners turning off their mining units, it was only to be expected that the block generation speed would drop. The Bitcoin daily block generation metric fluctuated between 100 and 120 blocks per day before dropping to only 95 blocks on May 17. This amount of blocks generated per day was last seen during the 2017 Bitcoin-lows.

Fees

While the hash rate and block generation time are very significant, the most significant metric out of these are the Bitcoin transaction fees, as they affect not only the BTC infrastructure but the consumers as well. While people who transact in Bitcoin won’t mind a bit slower transactions, they will most likely be frustrated by the increase in transaction fees.
Transaction fees went up by more than one-third just three days after the halving, resulting in an 800% monthly transaction fee increase.
How long will this last?

Everyone is asking if this change of circumstances will affect Bitcoin negatively in the long run. However, experts believe that the latest adjustments, though negative, were not big enough to make a long-term negative impact. Most of them believe that it might take three to four difficulty corrections before miners could return to their “business as usual.”
The situation seems to be coming back to normal as all the parameters are returning to their previous levels.

Categories
Crypto Videos

China Gets Wrecked! Who Will Take The Bitcoin Mining Throne?

https://youtu.be/W1cPV2NB5hE

https://youtu.be/W1cPV2NB5hE

China Destroys 10% of the Global Bitcoin Mining Hashrate

epa06062677 (06/26) Tibetan Bitcoin mine manager Kun walks in between aisles of mining machines in a Bitcoin mine in Sichuan Province, China, 26 September 2016. Kun is the mine’s manager as well as one of its investors. He learned about Bitcoin through a friend and started investing in 2015. China, the world’s leader in Bitcoin mining, is dominating both the currency’s generation and the global trade in the currency. Sichuan has become known as ‘the capital of bitcoin mining’ as entrepreneurial Chinese set up ‘mines’ there due to its abundance of hydropower, perfect for the high electricity needs of the large number of computers required for Bitcoin mining. Bitcoin mines are buildings with warehouse-like structures equipped with massive numbers of microprocessors with which ‘miners’ solve complex math problems and are rewarded in the digital currency. The industry exists in a legal gray zone in China, and the miners in this story, concerned about attention from the government, asked not to have their full names or the names of the villages where their mines are located mentioned in this story. EPA/LIU XINGZHE/CHINAFILE ATTENTION: For the full PHOTO ESSAY text, please see Advisory Notice epa06062671

The Chinese provincial government of Sichuan has stamped out 10% of the global Bitcoin hashrate due to, as they announced, illicit cryptocurrency-related activities.
According to Cambridge University estimates, the province of Sichuan is responsible for almost 10% of the global Bitcoin hashrate. As a comparison, this single Chinese province has more mining power than then the entire United States or Russia. However, it is unsure what will now happen to the miners in this province.

What can we expect?

It’s not clear whether the recent issues will effectively destroy mining in Sichuan, as China’s crypto community was always strong, even despite governmental constraints. With that being said, many believe that, even though Chinese miners were never felt “comfortable” and “safe” when mining, this event has made the situation the worst it has been.

The question we have to ask is: Who will mine if the Chinese government shuts down Sechuan miners?

Philip Salter, Genesis Mining head of operations, said that the main advantage of mining in China is cheap production costs, but that it doesn’t come without disadvantages. The main disadvantage of mining in China would be that they use coal to create energy, which makes operating costs not so good.

People started speculating on who will pick up the slack: The big Sechuan miners by moving to other provinces or some other mining power that will come from the western part of the world. We have seen mining giants such as Bitmain creating facilities in western countries, so it might not be too far-fetched to believe that the era of China-dominated mining market might come to an end.

Categories
Crypto Daily Topic

Top 10 Crypto Traders And Blockchain Experts To Follow On Twitter

The world of crypto trading can be murky. To a large extent, this is attributable to the still-novel nature of cryptocurrencies and blockchain. It can also be due to the sheer volatility of the markets that can catch even the most experienced trader off-guard at any time.

The world of crypto trading can be murky. To a large extent, this is attributable to the still-novel nature of cryptocurrencies and blockchain. It can also be due to the sheer volatility of the markets that can catch even the most experienced trader off-guard at any time.

The world of crypto trading can be murky. To a large extent, this is attributable to the still-novel nature of cryptocurrencies and blockchain. It can also be due to the sheer volatility of the markets that can catch even the most experienced trader off-guard at any time.

What’s the beginner crypto trader to do?

Well, crypto enthusiasts can always turn to Crypto Twitter. In this context, Crypto Twitter refers to accounts that have dedicated themselves to providing trading analyses, rationale, and making sense of crypto market moves in general.

In this piece, we provide some of the best crypto trading and analysis experts on Twitter.

Here are their twitter handles:

1. Bitcoin Jack @BTC_JackSparrow

Bitcoin Jack is a crypto trader and a market analyst who offers his analysis in the form of visually stunning charts. If you are a fan of charts and graphs and not so much into theory, then his views on the market are worth following.

2. Mayne @Tradermayne

Mayne is a crypto trader who uses price action as the basis of his analysis, trading insights, and market moves. And he’s happy to share his ideas with his 64k+ Twitter followers. Having been involved in cryptos since 2013, he’s more experienced in the ins and outs of crypto trading than your average crypto investor.

3. Philakone @PhilakoneCrypto

Philakone is also referred to as ‘Philakone Sniper Day Trader.’ On his Twitter page, you’ll find high-quality research and trading resources in the form of videos and charts. He doesn’t shy either from sharing how trading is affecting his personal life.

4. Crypto Rand @crypto_rand

217k+ followers have seen reason to camp at Rand’s Twitter timeline. He regularly shares his technical analyses and connections between crypto and the real-world economy.

5. Luke Martin @VentureCoinist

Luke Martin is one of crypto Twitter’s most-followed figures. His followers are treated with regular technical analyses, charts, and market commentary.

You can subscribe to his daily live webinar, a favorite among traders, for $50 per month. If you want an in-depth analysis of price movements of altcoins, then his account is a must-follow.

6. @filbfilb

Twitter user filbfilb regularly tweets about crypto charts, his trading analyses, and ideas, as well as his predictions on Bitcoin’s future performance. He also writes a weekly newsletter that provides further insights, and he maintains a free journal on Telegram that anyone can access.

7. Anondran @AnondranCrypto

Anondran is a crypto trader, investor, and analyst who has been around since 2015. On Twitter, his fans can expect frequent commentary on what’s happening in the crypto space, as well as his predictions on the most popular cryptocurrencies.

8. Alvin Lee @onemanatatime

Lee is a crypto trading expert who has been around the block for a while. He runs the Aluna Crypto Currency and Trading (LINKKKM) blog, on which readers gain access to different trading/market analysis strategies and tactics. On Twitter, he provides his take on future price movements as well as his own technical analyses.

9. Vinny Lingham @VinnyLingham

Lingham is the co-founder of Civic, a blockchain-based identity management startup. He’s known to provide surprisingly accurate price forecasts on Bitcoin. Lingham is also a frequent fixture at crypto events, where he’s invited to share his insights on the current and future crypto landscape.

10. CoinDesk Markets @CoinDeskMarkets

This isn’t an individual trader. It’s CoinDesk’s official crypto markets Twitter account where they provide commentary on crypto-related events, analyze signals, and follow market moves closely. It’s one of the best accounts to follow if you don’t want to miss the price action of the most popular cryptos.

Final Thoughts

While these crypto trader accounts provide highly relevant and useful insights on what’s happening in the market, remember no trader is infallible or always correct. If you take everything they say and blindly replicate, it’s one way to lose money. These accounts, and any other similar accounts, should aid you in your own research, not replace it.

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Crypto Guides

Formal Verification – A Method That Makes Smart Contracts Extra Secure!

Introduction

Introduction

Introduction

The smart contracts are now used extensively in the crypto and blockchain space for various use cases, especially for transactions involving a very high volume of money. Hence, it has been more critical than ever to check out smart contracts for any vulnerabilities. These vulnerabilities are the reasons for hacking some of the cryptocurrency platforms, even though the blockchain network is very secure. Hence the timely audits and formal verifications are must both concerning hardware and software to ensure optimal security.

What is Formal Verification?

Formal verification is a method used to check whether the software of hardware systems matches the intended requirement. A particular type of mathematical technique is used to know the intended requirement matches or not. Using these mathematical techniques to check the level of the algorithm of correctness as per the requirement is known as formal verification.

Testing hardware or software with formal verification can be broken down into 2 phases, validation, and verification. Validation determines whether the product meets the user’s needs while verification is testing whether the product works as per the specifications provided.

While formal verification used to be done mostly for the hardware components, it is increasing the testing in software components as well. As there is no third-party involvement in vast transfers of the money, these are autonomous transfers. Hence, smart contracts should be robust enough without any faults.

Why is Formal Verification used for Smart Contracts?

Ethereum is a Turing complete machine, started utilizing the concept of smart contracts. Hence an analysis has been done on around one million smart contracts of Ethereum to check their robustness. It has been found that nearly around 32,000 contracts are faulty. The contracts are seen to be flawed because they were found to either lock the funds indefinitely or release the funds to arbitrary users, and anyone could kill the contract.

Given the nature of the immutability of smart contracts, if these problems aren’t detected before the deployment of the agreement, it will create serious issues once the code is deployed.

Platforms using formal verification

Many platforms that are using smart contracts robustly are trying to integrate formal verification into their platforms. Let us see some of them below:

Cardano

Cardano’s smart contract language is Plutus, which is based on Haskell. Cardano is basically written in Haskell. Cardano is designed with the Cardano computational layer, which by default consists of two layers while one allows formally specified languages used for checking the code of the smart contract, and the other is a defined officially virtual machine and language framework. The default layers’ goal is to check the smart contracts to avoid severe vulnerabilities in smart contracts without any additional requirements.

Ethereum

Ethereum has been trying to incorporate formal verification for a long time now since it has many smart contracts functioning on the platforms. They have even come up with a publication called “making smart contracts smarter.” This publication focuses on smart contracts bugs and mainly focuses on ways to mitigate them. This includes the change in operational semantics of Ethereum to inbuilt formal verification.

There are certain challenges in implementing formal verification in the Ethereum platform. One is gas limits, and the other one is its solidity programming language. To understand solidity, it should be compiled into bytecode. The compiler changes rapidly, so the verification tools should be in tandem with the speed of the compiler.

Conclusion

Measuring the positive impact of formal verification in the smart contracts will take some time since the adoption is slow. Many are realizing just yet the vulnerabilities of smart contracts, and given its substantial financial transactions, the weaknesses should be captured effectively and curtailed at the very beginning to restrict the losses.