Make sense of the news and how it affects the blockchain space as a whole. Crypto trends is a collection of relevant news and insights to help you make an informed decision.
*Update: Added information about Binance Chain Memos and new withdraw panel
Binance just launched the Mainnet for Binance Chain – and there are significant changes such as a “BNB token swap” that you MUST know about. The Binance Token (BNB) will no longer be on the ethereum chain (ERC-20 Token), instead it will be fully migrated to Binance chain (BEP-2). This means if you hold BNB on an ethereum wallet, you must pay special attention or you might accidentally send it to the wrong address.
Binance has started the token swap for $BNB tokens. In the future, BNB address will begin with “bnb……” format instead of the ethereum “0x…” address.
New BNB withdraw page uses the MEMO feature that is unique to Binance Chain
BNB kept on Binance.com will automatically be swapped – no manual operation required. The new withdraw page will automatically use the Binance Chain address.
To deposit Ethereum based tokens based on the ERC-20 standard, $BNB tokens can be sent to the Ethereum deposit address on the Exchange.
Old ERC20 Binance BNB tokens can be deposited in “Ethereum” address for converstion
Once ERC20 BNB is deposited into the exchange, the token will be automatically swapped.
BNB Token Supply and Functionality
In terms of total supply, the amount of BNB remains the same. The initial supply of BNB will be 200,000,000 and 11,654,398 BNB will be burned on Binance Chain. Binance will burn ERC20 BNB tokens to keep the total supply constant as the token swap takes place
Binance DEX
Binance DEX has officially launched at Binance.org. This Decentralized Exchange is designed for advanced users who want to keep self-custody of their cryptocurrency assets (as opposed to centralized exchanges where funds are kept by exchanges).
Currently Binance DEX support their own token standard, the BEP2 token. For coins to be listed on the DEX, they need to be migrated to the Binance Chain. Whether coins are willing to migrate depends on what features they need:
Faster transactions – Accelerators and small number of Validators mean confirmation times are much faster
Centralized – Validators are pre-authorized and consensus is not open to general public
No smart contract support – Binance Chain is transaction only
Binance to Challenge Ethereum as top Token Issuance Platform?
With the introduction of the BEP2 token standard, Binance Chain can allow projects issue tokens via Initial Coin Offerings (ICO) or Initial Exchange Offerings (IEO). This feature allows BinanceChain to rival the ERC20 standard Ethereum which has been used by many popular projects such as Basic Attention Token (BAT) and OmiseGo (OMG). What sets BEP2 tokens apart is that it has a faster confirmation time and access to Binance DEX.
Whilst many have questioned if the success of Binance Chain would mean the demise of Ethereum, CEO Changpeng Zhao has denied this claim.
CEO Changpeng Zhao doesn’t see Binance Chain as a competitor to Ethereum
Currently Mithril (MITH) has chosen to migrate to be the first token to be migrated to the Binance Chain.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
VeChain ToolChain could bring blockchain technology to the masses. Toolchain allows anyone to use the power of blockchain without complicated programming or engineering. We always hear a lot about blockchain projects including VeChain partnering with big names. Examples being DNVGL, BMW, PwC and others (Click here to find out more about Vechain and its partnerships).
According to statistics from the United Nations, over 90% of firms worldwide are Micro-, Small and Medium-sized Enterprises (MSMEs).
VeChain’s ToolChain seems to recognise their importance and is bringing its blockchain technology to them.
What is VeChain?
VeChain is a blockchain platform which supports the creation of smart-contracts. These are self executing contacts that have a guaranteed outcome without third party trust. This allows for the creation of decentralized applications which is intended to solve enterprise problems such as anti-counterfeiting and cold-chain logistics. To learn more, check out our article VeChain Explained or our VeChain in a Nutshell video below.
ToolChain is VeChain’s latest product. It was announced at the VeChain Summit 2019 (Click here for a recap).
ToolChain hardware kit displayed at VeChain Summit 2019
ToolChain is a kit containing all the necessary hardware, software and service protocols to onboard a business onto the VeChainThor blockchain.
There are 3 Versions of the ToolChain kit: Standard, Developer and Channel Partner. This is so that businesses with any levels of technical capability can use VeChain’s technology.
Standard Version
The Standard Version provides standarized application modules, tools and Internet of Things (IoT) devices. It was designed for MSMEs without the capability to develop their own blockchain-based lifecycle management solution. Businesses can be onboarded onto the VeChainThor blockchain within 30 minutes.
Developer Version
The Developer Version is designed for enterprise customers with stronger technical capabilities. It will allow enterprises to develop various applications based on the VeChainThor blockchain tailored to their needs.
Channel Partner Version
Channel Partners will be able to have independent deployment and multi-dimensional customisation of ToolChain.
VeChain ToolChain at a glance
The ToolChain hardware kit contains:
QR code printer and application software to print QR codes.
NFC writer and software to create digital labels on NFC tags.
IoT devices, RFID chips and sensor devices
Handheld terminal devices which will enable ToolChain apps to bond and activate NFC chips, and transfer the data on them.
In terms of software:
ToolChain Admin Center: this app is a command centre. One of its features is that business owners can use this software to configure NFC and/or RFID chips. The Company can ship these NFC and/or RFID chips directly to businesses.
VeChain Work App: this app allows business owners or third party manufacturers to “bind” the physical product to the NFC/RFID chip. To learn more about this app, check out Bsc44’s article here.
VeChain Pro app: this app is already available to download. It will be pre-loaded onto the NFC scanner. It allows anyone to view the entire story of the product including proof of authenticity and origin.
Description of the ToolChain kit components
Examples of VeChain ToolChain in use
One of ToolChain’s notable users is SBTG Surplus & Co., a custom sneaker artist. SBTG uses NFC chips embedded into its limited edition sneakers. Customers can verify the sneakers’ authenticity, origin and other information by scanning them with the VeChain Pro app.
Best use of blockchain is real life use 𤊠– with @vechainofficial's help, these sneakers are impossible to counterfeit. An NFC tag is sewn into the shoe with a private key that's recorded on Vechain's Blockchain. $VET Now if only they have it in my size….đąđąđąđą pic.twitter.com/NgFuZrsq5c
SBTG have recently partnered with Adidas and HBO Asia to produce limited edition Game of Thrones sneakers. These sneakers are powered with VeChain Technology.
SBTG x Game of Thrones sneakers with VeChain RFID chips
Problems with authenticity and quality assurance
MSMEs generally lack technical or financial resources. Hence they have difficulty in ensuring their products’ authenticity and quality. They are also vulnerable towards counterfeiters and bad actors in the supply chain. This in turn could seriously damage their reputation.
Even for products from larger corporations, product authenticity and quality assurance is not transparent. We as consumers do not have easy access to information on the supply chain of our products.
Consumers still rely on outdated authentication methods. This is true even for expensive luxury items. As an example, for luxury watches we would compare an items’ appearance or check its serial number. Meanwhile there are official databases of serial numbers. The numbers are only etched onto the watch and counterfeiters can easily copy this.
Thus, authenticating a luxury watch requires significant expertise and experience. Whilst counterfeiters are always trying to make their watches look more authentic.
Can VeChain ToolChain bring mass adoption through MSMEs?
ToolChain can be a simple and cost effective supply chain management solution for MSMEs. ToolChain could finally give MSMEs the same ability as large corporations to ensure product quality.
As mentioned above, most of the world’s businesses are MSMEs. ToolChain could finally bring blockchain to a substantial but overlooked group
Moreover, customers will be able to scan the NFC/RFID chip embedded into the product and see information pertaining to their exact item.
If you want to learn more about VeChain, check out our guide, VeChain explained.
Want to find out more interesting happenings at the VeChain Summit? Check out these videos below!
https://www.youtube.com/watch?v=ZRBuQ96ikPc
Check out our livestream with VeChain’s with Sunny Lu (CEO) and Kevin (COO), and Patrick from Plair
And don’t forget to check out our post VeChain Summit recap video!
Mass adoption is starting through…milk?
On 18th May 2019, VeChain announced that its enterprise partner, Bright Food (Group) Co., Ltd (“Bright Food”) has put its “Cupids Farm” milk on their BrightCode Commodity Confidence Index Platform (“BrightCode Platform”).
Cupids Farm milk
The BrightCode Platform is a blockchain-based commercial ecosystem built upon the Partner Version of VeChain ToolChain. To learn more about the Platform, check out Oliver’s article here.
Bright Food was founded in 2006 and mainly produces milk products, sugar, wine, snacks and canned goods. Bright Food’s products can be found in over 4000 online shops in China. The Company was listed as one of the ten Chinese companies to watch in the international arena by Forbes Magazine in 2015.
When customers can scan the QR code on bottles of “Cupids Farm” milk, they will be directed to the BrightCode Platform. There, key information on the bottle of milk’s lifecycle will be available. For example information on where it was produced, videos of the diary farm, production techniques etc.
VeChain’s other partner, DNVGL will be responsible for verifying the source data and tamper proof technology. So customers can be assured that the information presented is authentic.
Information shown to customers when they scan the QR code
FREE trial now available!
You can now register for a FREE ToolChain trial account by signing up with them! Link Here!
In Crypto, not all trade volumes are visible – in fact “Darkpools” account for a huge amount of crypto trading and has an enormous impact on cryptocurrency prices. Darkpools include peer-to-peer trading, such as on sites like localbitcoins.com and also Over the Counter (OTC) desks. The reason why it’s unreported is because deals are done privately, for example Peer-to-peer trading can be done in person and with cash, leaving virtually no trace of the transaction ever happening. Large volumes are also traded OTC – this is more organised as private buyers and sellers are matched, with some form of escrow to allow the transaction to take place. OTC desk sometimes even require minimum volumes, like $100,000+ USD to up to 1 Million.
First things first. What’s an Over the Counter (OTC) desk?
Traditionally, OTC desks facilitate trading of securities that are not listed on formal exchanges, e.g. the New York Stock Exchange.
The trading of cryptocurrencies on OTC desks is similar to those in traditional markets.
OTC desks have a network of buyers and sellers. The trades themselves are facilitated by OTC broker-dealer who will locate and negotiate directly with prospective buyers and sellers over computer networks or by phone.
This is contrasted from trading over exchanges where the prices and order books are publicly available. For OTC desks, their broker-dealers will negotiate the trade price for you. Trades are also not publicly listed giving the parties privacy.
Therefore, to fully understand what is going on in the cryptocurrency markets it is important to consider what is also happening at OTC desks. This is because large transactions happen on them on a daily basis.
What does a trader at an OTC desk do?
Traders at OTC desks are the broker-dealers mentioned above. Their role is to locate and match buyers and sellers, and negotiate the best deal for all the parties involved.
Part 1: Crypto trading/ Market Manipulation/ OTC Markets
Therefore, it is important for traders at OTC desks to have a keen eye on the cryptocurrency markets and be knowledgable of the market trends.
I had the opportunity to interview Charles Yang, Head Trader at Genesis Block Hong Kong, an OTC desk. In my interviews we discuss what’s really happening at OTC desks away from the public eye. We also discuss his thoughts on the market sentiment.
Is Tether Safe? Will Bitcoin & Ethereum Recover?
Secrets and Insights from an OTC Trader
Here’s a summary of the key points from the interviews with Charles.
There is still interest in cryptocurrencies
Charles observes there is revived interest in cryptocurrencies despite this bear market.
He notes that a lot of the customers from the OTC desk who were previously dormant have recently contacted them wanting to buy and sell cryptocurrencies.
The risk of Tether is exaggerated
Firstly, what is Tether? Refresh your memory with our Tether Explained guide below:
We’ve seen in recent news that USDT is not fully backed by cash. Instead, Tether is around 75% backed by cash, and the remaining 25% by other securities or loans.
Confused with what’s happening in this Tether scandal? Check out our video below which explains what is happening and the latest legal action surrounding Bitfinex.
Despite this, there is still demand for USDT in Asian countries such as China, where they are buying USDT at a premium.
This is because China bans cryptocurrency exchanges, so retail investors cannot buy cryptocurrencies such as BTC. What they do instead is they first buy USDT through peer to peer merchants, and then enter the cryptocurrency market at a later time when conditions are right.
Right now, Bitfinex who is being accused of “losing” customers funds is more at risk. Bitfinex will have to go bust first before people question USDT.
Charles believes that fundamentally short trading would have less losses because if USDT is at 97% and your prediction is wrong, then your loss would only be 3%. Whereas the opposite would be to bet that it goes to 0.
Mining is still profitable
The recent “official news” in China was that cryptocurrency mining has been banned.
Despite this ban, Bitmain is coming up with new models and generally summer is big for mining because electric costs falls.
There may be miners who start accumulating and building to maximize their margins
Charles notes there is news that big players are scrambling to get cheap damaged mining rigs. They are not the newest models but there are still returns from using them to mine cryptocurrencies.
So despite the official news about China banning mining the word on the street is that people are buying rigs and locking in contracts for the summer months.
Bitcoin mining Ban in China 1. Miners will "co-operate" and send in some old gear 2. Government will take photos claiming operation is successful 3. Mining with countinue in China as normal 4. Bitcoin demand will increase because Chinese people like to do opposite of Gov demands pic.twitter.com/d9GACAqd12
Simple guide to the aftermath of the Chinese Bitcoin mining ban
Initial Exchange Offerings (IEOs) are risky, but need not be avoided completely
If you participate and get allocation you would benefit. But ultimately it is the exchanges that benefit because you need to buy their token to participate.
For example Binance requires you to buy into IEOs with their BNB token. Of course it’ll be great for you in the short term if you get allocation and the coin pumps. However your risk is that you would be left with the exchange token if you don’t manage to get any allocation after the lottery.
IEOs are also highly volatile, especially immediately after listing
It may be better to trade with OTC desks than exchanges
Charles notices that there is quieter trade flow, so big players looking to buy or sell cryptocurrencies need to offer better prices. Therefore the margin between the buy and sell price is much less. Bigger players also can offer better quotes because of volume. Therefore it may be cheaper to trade with OTCs who deal exclusively with larger orders than exchanges.
And whilst exchanges require you to have the funds ready at the time of transaction, OTC desks allow you to lock in the prices and settle later. This gives people more flexibility .
However, depending on who you are, one upside or downside of OTCs is that they are not transparent. So while you can try to gauge whether there is a lot of trade flow through an OTC desk by reading their reports (if any), there is no way you can verify if they are being truthful. On the other hand you can conduct trades privately compared to on exchanges.
What coins to hold? Bitcoin Bitcoin Bitcoin (BTC)
Unlike other coins, Bitcoin (BTC) has a 10 year history. There is no founding team or leader. For this reason it is not affected by company politics and is the most decentralised.
We can see the prices for a lot of tokens crash during the Initial Coin Offering (ICO) crash. Some may be due to the project running out of funds, failing to deliver on its promises or in worse cases the founders and key personnel leaving the project altogether. Studies were shown that over 80% of ICOs in 2017 were scams.
I was standing in the same spot glued to my phone for 2 hours when this all went down.
We also see that the ICO game was not fair, some people were able to purchase tokens for a more favourable rate or terms even before the token was listed to the public. This however would never happen with BTC.
Is day trading profitable? No (sorry)
For retail investors, day trading is not profitable even for traditional markets.
This is because retail investors would be bogged down by trading fees, but not all trades are profitable.
Retail investors are also unprotected from market manipulation. This is especially true for cryptocurrency investing, which is generally an unregulated space.
Don’t do this
Conclusion
Ultimately, trading cryptocurrencies requires exercising caution and doing your own research. One can look at OTC desk reports to have a good grasp of what may be quietly happening with some big players, but at the end of the day, question everything. Also, whilst you may stand to gain several times your initial investment by going into highly volatile IEOs, bear in mind it is designed so that exchanges ultimately win. The most prudent thing to do is to never invest more than you can lose.
Micheal: What do you think about the crypto space at the moment?
CZ: Personally, I think we are in a better place than we were this time last year. We are healthier than ever and there are tons of great things to invest in. The valuations are high and those who are building now have really good products, contrary to how it was when the market was high. Everyone at the conference has many ideas and more people are enthusiastic. The number of people going to conferences, the number of people working in this industry is increasing so the industry still going very strong even though the price of dropped a little bit since last year but if you look at two years ago it was like $300 for a Bitcoin so today’s 3000 it’s not too bad at all.
Michael: Whatâs the vision for Binance going into 2019?
CZ: We want to build five to ten Fiat on-ramps around different parts of the world hopefully spreading out from different continents. We see that as a limiting factor for the market and we also see there is an overwhelming need for it in the Jersey market. We want money coming in from the fiat market but on the flip side, we also see the need for a decentralized exchange.
Binance DEX – Decentralized Exchange built on Binance Chain
Binance DEX: Decentralized exchange
Michael: What is happening with the decentralized exchange? Will they be competing against each other?
CZ: I don’t think it competes at all. There are three categories really so there are people who use Fiat to crypto centralized exchanges and now you can’t really decentralize anyway because the banking relationship you can’t do it. Then there are people who are using crypto to crypto centralizing because there are very high liquidity faster systems etc and then this exchange you got to rely on exchange some people view that as less secure, some people view that is more secure than doing themselves and then there are the guys who want to control their own private Keys who want to be more anonymous. So most of the guys in the core community are heavy power users and they’re loud they speak more and the others, they want to use Dex so we see that as not really competing we’re just offering different solutions to different people and we always let the user choose and we let the market choose. Overall, most people think decentralized exchanges will be the future.
M: Will we see familiar tokens on the decentralized exchange?
CZ: I think over time we will see more coins traded on the decentralized exchange because there’s less control we already have confirmation of a number of large projects were doing that they have to migrate completely from Ethereum on to finance. So, basically, if you’re only using ERC-20 as a token there’s no real reason for you to stay on Ethereum. There’s a lot of benefits with Binance, lesser cost transactions and it integrates a native Dex decentralized exchange so you don’t have to use a slower more expensive distance-wise exchange. So the Binance chain is actually a very simple chain where to create a token you don’t write a small contract so you just you just specify a few parameters you specify the token name the token symbol and how many decimals you have and pay a relatively large fee initially as we want to block out the scammers. Pay a fee in and boom you have your current you have your token so it’s much easier to use much less programming involved and so because we don’t have the smart contract there will be no EVMs making virtual machines to be faster so it’s a much condensed special-purpose chain.
Security Token Offerings (STOs)
M: What are your opinions on STOâs?
CZ: It is definitely a very interesting space but excuse relates very heavily to regulatory regulations so we already have regulatory licenses at different places with different partners long term. Itâs not our strength so we’re kind of waiting to see how other people do it and once other people figure out what they do. We can potentially copy them shamelessly and then grow that. (https://idealhealth123.com/) It requires a lot of lawyers a lot of guys in the regulator space so itâs one for the future, we are more technology-based right now.
CZ showing off his new Binance Tattoo
Getting to know CZ
M: Whatâs the weirdest place you have used Twitter?
CZ: I donât know, I love Twitter. I am just myself and it’s nice to interact with the community and get feedback. Sometimes I attack people sometimes I am polite, I just am myself.
M: Tell us about your Binance tattoo?
CZ: I was in Singapore with Gareth and Luke, and Luke had a bitcoin, coin finance tattoo and he said he was going to get a Binance one so I thought I should get one also. Then Gareth said he wanted a Binance tattoo too. So the three of us went to a tattoo shop in Singapore I got it like about a month ago so now it’s healed really well I like it.
M: Whatâs your next tattoo going to be?
CZ: Yeah actually I’m okay with one for now. I think for me the logo is very meaningful, I think if you want to put something on your body it has to be meaningful to you. I like it, yeah but I don’t think I’ll get a second tattoo anytime soon!
Attending Blockshow Singapore, I only have one question in my mind –is the Blockchain scene still alive? Conferences are great for answering this question because unlike fake trade volumes, attendees cannot be faked.
Who’s Attending Blockshow – any new investors?
Upon arriving at the Marina Bay Sands Conference center, I was pleasantly surprised at the number of attendees: more than 3000 blockchainers packed the conference halls. Both conference halls had over 70% of the seats filled, which was a good sign as people were actually listening to the talks. The organizers made some cheeky “optimizations” by booking a smaller venue: the main conference hall packed around 300 people instead of the usual 600 seen in other conferences.
I’m watching out for new investors. High numbers of new faces to the blockchain space would mean that the scene is heating up again. It could also potentially signal an end to the year-long bear market. Unfortunately, CEO of Blockshow Addy Crezee stated that there are few new investors coming into this conference.
Strong Development Focus
You’re going to need different types of people – can’t just be engineers. You’re going to need branding, marketing, financial consultants … everybody
For once in a Blockchain conference, attendees are no longer comparing “top ICO deals” or “hottest altcoin tips“. Unproductive ICO deal discussion dominated the conversation space at Consensus in New York this year, a conversation topic that breeds unwanted speculation into this space.
During Blockshow, discussions matured and revolved around about “what a team is developing?“. In addition critical debates were held over how to advance blockchain technology. This sends a strong positive long-term signal as we are guided towards health growth and advancements in this space.
Working Products
I was lucky enough to catch a glimpse of the SBTG Shadow Fury with Vechain anti-counterfeit technology. Scanning the trainers with the Vechain Pro app will verify the unique ID on the shoe and match with records on the Vechain blockchain. (Diazepam) The tag is directly sown into the tongue of the shoe and cannot be duplicated due to the strong encryption used.Â
I have to say, seeing products in real life is much better than looking at drawings and whitepapers. The next step is to take this technology mainstream and into major brands (Nike is trialing this) and other products such luxury handbags.
Security Token Offerings (STO)
CEO of Blockshow Addy Crezee gives a rundown of the conference
Security Token Offerings (STOs) have become a hot topic this year, with ICO engineers look to STOs as a way to reignite the fundraising fever. STOs offer direct value to token holders – by offering an equity share of the company, it solves many of the problems of Utility Tokens face. Token holders no longer need to as “what are the tokenomics” or “what makes this token valuable in the long term“.
However, there is catch: extremely limited accessibility, especially in the US. Security tokens can only be traded between accredited investors who have more than $1 Million USD net-worth.
There will be new terms like Token Security – which I always talk about. (Token Security) has an underlying asset that is a security, which already has an legal entity.
One way to describe cryptocurrency is that it is simply a digital cash system without a central entity. To realize digital cash you need a payment system with accounts, balances, and transactions. One major problem payment networks have to prevent is double spending: to prevent that one individual who spends the same amount twice. This is usually done by a central authority or body who keeps a record about the balances.
In a decentralized system, there is no one person that is responsible for this. Every single part of the network has to fulfill this function. Every part needs to have a list with all transactions to check if future transactions are valid.
Cryptocurrency and the blockchain
Cryptocurrencies are also simply just limited entries in a database no one can change without fulfilling specific conditions. If you think about it, that can also be used to describe our current monetary system. Money in your bank account is basically entries in a database that can only be changed under specific conditions.
Confirmation of transactions is a critical concept in cryptocurrencies. As long as something is unconfirmed, it leaves it open to forgery or falsification. When a transaction is recorded onto the blockchain, it can no longer be changed and it canât be reversed.
Peers in the network, or as they have come to be known, miners, can confirm transactions. They take transactions, stamp them as legit and spread them in the network. After a transaction is confirmed by a miner, every node has to add it to its database. It has become part of the blockchain.
Cryptocurrency has derived its namesake from the strong cryptography process used to secure its consensus-keeping system. Cryptocurrencies are built on cryptography. They are not secured by people or by trust, but by math.
Properties of Cryptocurrency
Most cryptocurrencies share a common set of properties, but not all rules are set in stone. Some may focus more on privacy, while others boast faster transaction speeds of lower costs. Below are some of the more common characteristics you will find cryptocurrencies.
Transactions cannot be reversed – when your bitcoins are sent, thereâs no getting them back, unless the recipient returns them to you. Theyâre gone forever. This makes it difficult to commit the kind of fraud that we often see with credit cards, in which people make a purchase and then contact the credit card company to make a chargeback, effectively reversing the transaction.
Decentralized – there is no central authority controlling it and that means goverments cant take it away from you.
Low cost – compared to bank transfers or international transfers, the fees are a lot lower.
Speedy – you can send money anywhere and it will arrive minutes later, as soon as the network processes the payment.
Secure and transparent – because all the transaction information is stored on the blockchain, people cannot trick or deceive you about what funds they have. Cryptocurrency funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency.
Pseudonymous – Neither transactions nor accounts are connected to real world identities.While it is usually possible to analyze the transaction flow, it is not necessarily possible to connect the real world identity of users with those addresses.
Store of value – Most cryptocurrencies have a limit to the supply of tokens that can be mined or created. Because of this controlled supply, there are no risks of inflation unlike fiat currencies where new money can suddenly be printed.
A Blockchain contains digitalized transaction âblockâ records where each block connects to a series of all the previous and future blocks. Although experts suggest that Blockchains are impenetrable, it does not elude the fact that hackers have found ways to paralyze impregnable walls. Therefore, security concerns continue to invade peoples mind. There exist various companies offering security services such as smart contract, penetration testing, and adequate knowledge regarding Blockchains. Many professionals advice interested parties to do thorough research and learn more about cryptocurrencies before joining the community. You can rely on the numerous training videos on YouTube or attend conferences. People and companies alike also need to understand Blockchain security from all angles.
Security
Individual curiosity is an integral part of understanding Blockchain security. You need a clear perception of who is in charge of your investment security and how third parties play their role. Note that, your CTO is not responsible for personal data protection. His/her area of expertise lies in scientific and technological issues within the organization like code and software development. Entrust your protection to a Chief Information Security Officer (CISO) because their task is to provide adequate data and technology security.
Their services cost a fortune but if you cannot afford one, hire a consultant to evaluate your security measures. He/she will pay attention to various areas of interests such as two-factor authentication and cyber-security employee policies. For instance, most hackers illegally penetrate corporate systems via email, instant messages, or promotion/reward links. Their aim usually entails stealing sensitive information like credit card details, passwords, and usernames. In short, everybody who uses the internet to transact is vulnerable to hackers.
Every transaction follows a specific set of agreement for security purposes. Cryptocurrencies adopt smart contracts to control digital currency transfer through blockchain technology. The computer program eliminates the need for third parties because it digitally facilitates and negotiates terms. It is also a significant security protocol whose transactions can be tracked and reversed. Hackers operate using smart strategies like targeting both the top management and employees as well.
Therefore, you should not solely rely on corporate protection especially if your passwords, username, and cell phone numbers are connected to your account or assets. It is extremely risky to expose your data through various devices to multiple platforms. Programmers across the world have developed security management apps like Dashlane to secure your passwords and wallets. Another alternative solution includes adopting a comprehensive multifactor authentication using launch keys. You can also apply the most recent security key development like Titan to verify login details over Bluetooth.
The bottom line is that if you are currently in the cryptocurrency business (individually or as an organization), you are a target and so are your employees. Create different passwords for every account and enhance the verification process. Most importantly, do not trust anyone with your information and that includes private keys, passwords, username, etc. Blockchain agencies should consider training workers and extending useful solutions to hacking issues. The strategy strengthens not only personal security but also the entire corporation. Various costs are usually involved, and therefore, the relevant officers must create a budget to accommodate security changes.
Regulations
According to various sources, most people have yet to understand how cryptocurrencies work and their potential. Even after dominating the world news for a decade, over half the global population is unwilling to take risks. The industry is still young and expanding at best. Its high growth rate has triggered the need for regulations in various countries. Japan is among the first nations to legitimize cryptocurrencies followed by the United States. However, most governments issue notices about investing in the industry.
The warnings pertain to risks involved especially since transacting organizations have no legal responsibilities to their clients. Some reports suggest that the electronic cash system creates a perfect atmosphere for terrorism and money laundering (due to anonymity). As such, several states have expanded laws on various criminal activities to include crypto markets. Others restrict crypto investments while nations like Nepal have banned all crypto activities altogether. In Qatar, citizens cannot operate locally, but they are at liberty to do so beyond the borders.
Cryptocurrencies have also tapped into fundraising using Initial Coins Offering (ICO). However, most states regulate ICOs while others like China have completely banned them. Strict regulations have also discouraged people from investing, but most governments are working towards creating crypto-friendly regulatory systems that will attract investment and offer maximum protection to clients. Luxemburg and Cayman Island are among the nations that hardly view Blockchain technology as a threat. They aim to create their own cryptosystems including Venezuela and Marshall Island.
Taxation, at its best, has yet to categorize cryptocurrencies and all its tax-worth activities. But different countries have adopted various references to regulate Blockchains by taxing them as assets, financial assets, foreign currency, income tax, etc. in the United Kingdom, crypto firms pay corporate tax, individuals pay capital gains tax, and unincorporated agencies pay income tax. The mining of cryptocurrencies is mostly affected by power taxation rules.
The bottom line is that Blockchain security has unlimited options. Cryptocurrency companies can adopt smart contract auditing or hire consultants. (https://casadelninobilingual.com) More so, they should offer cybersecurity training to their staff and regulate internet access. Individuals, on the other hand, can maximize personal data protection through launch keys and two-factor authentication methods. Regulation-wise, governments are responsible in that, they can create crypto-friendly regulatory systems, impose the tax, or ban cryptocurrencies altogether.
With the Christmas holidays over, might we expect new money to pour into the markets? The past week saw a few dips in the market, with bitcoin falling to 11,000 and 13,000 on two separate occasions. The price has rebounded now back to over 16,000.
https://www.youtube.com/watch?v=vv9fZcN5i8I
Crypto as a store of value?
One big vision for crypto was it’s use as an alternative currency. It promoted fast and global transactions, as well as the security of cryptography. However, as we draw to the end of 2017, we’ve found that some cryptos, like bitcoin, have taken on a role as a store of value rather than as a currency. The popularity and high demand of bitcoin has caused transaction fees to sky rocket. As a result, using it for daily spending is very cost inefficient as the transaction fees may very well take up a large percentage of the actual purchase.
Nonetheless, it still works very well as a store of value. It’s accessible all around the world, as long as you have an internet connection you can send and receive it. In nations suffering from hyperinflation, like Venezuela, bitcoin can help people retain some of the value of their currency. It sort of functions like a form of digital gold.
Bitcoin God – more forks?
Forks look like they are here to stay. This year saw the coming of Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond just to name a few. And they all had various levels of success.
Another one on the horizon is Bitcoin God, set to fork at block height 501225. Created by chinese developers, they say they will offer POS mining, large block sizes, smart contracts, and zero-knowledge proof. Only time will tell whether they can deliver on these promises, but all this forking business shows now signs of slowing down.
The content here is not financial advice. The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Why does this have any value? It’s not backed by any goverment, and it’s not a physical commodity like gold where you can touch and feel it.
It is Decentralized
That means it is not backed by any government or central authority. For currencies like USD or the Euro they are backed by their respective government and groups of governments and with those goverments, there may be times of hardships. Hardships such as, but not limited to, war, famine, financial crisis, and natural disasters.
It is a Store of Value
When these difficulties hit, governments are usually tempted to just print out money. They might be needing that money because they are in debt or they need to fund a war. Printing more money increases it’s supply and this could ultimately lead to inflation.
With bitcoin, there is a set maximum that can be created, and that is controlled by mathematics and computer code. Because there is a limit, it makes it a great store of value. You may have even heard of the term “digital gold” being used to refer to bitcoin.
First movers advantage
It is Secure
Bitcoin can only be transferred by mathematics. It has to adhere to the programming code rather than people. We do know that people can sometimes be controlled or influenced by politics or other external pressures.
As long as you are the only one in control of your private key, then your funds are safe. Someone cannot decide to suddenly lock up your account or freeze your funds.
Transactions cannot be reversed
when your bitcoins are sent, thereâs no getting them back, unless the recipient returns them to you. Theyâre gone forever. This makes it difficult to commit the kind of fraud that we often see with credit cards, in which people make a purchase and then contact the credit card company to make a chargeback, effectively reversing the transaction.
It is Convenient
Earlier, when we talked about bitcoin being named as “digital gold”, we forgot to mention another advantage that is has. Since bitcoin is a digital currency, it has the benefits of gold without the drawbacks.
Gold can be heavy and bulky, and thus hard to transport. You also need a secure place to physical store it. Since bitcoin is all digital, the cost of sending it doesn’t change no matter where you are. The amount of time it takes and how much it costs is the same whether you’re sending it to someone next to you or halfway across the world.
It’s cheaper compared to bank transfers or international money transfers. The fees are a lot lower. Also, if you’ve ever tried to transfer money overseas, you know that it can take days. With bitcoin it is much faster – you can send money anywhere and it will arrive minutes later, as soon as the bitcoin network processes the payment.
OmiseGO is a token proposed by Omise that allows real time, direct transfers across multiple fiat currencies and digital currencies. Omise go is an existing payment management platform mainly focused on Southeast Asian countries such as Thailand, Singapore and Japan. With this new project, they plan to take this one step further and integrate their services with blockchain technology.
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Affordability – low transaction fees
Using traditional remittance methods make it difficult for a lot of their target market to send money home. The fees will take up a large percentage of the total amount. OmiseGo can offer almost instant transfers at low cost.
Allows easy transfer between fiat currencies and also digital currencies
What it Means
Ultimately, OmiseGo should make it easier for foreign workers to send money home to their families. It also has the additional benefit of extra security through decentralized currencies. Millions of users in fast growing economies will be given the opportunity to go from fiat currencies to digital currencies.
**Update**
OmiseGo has announced their collaboration with McDonald’s Thailand. Founder, Jun Hasegawa, confirmed the news on his Twitter. Following the news, OMG has seen a slight rise of over 4% today.
Hi guys! Iâm going to interview Jimmy Song (with Ivan on Tech), a vocal Bitcoin Developer and Entrepreneur about Segwit and the future of Bitcoin. Do you guys have any suggestions for interview questions?
I would like to ask the boxminingmedeveloper.temp927.kinsta.cloudmunity if you have any questions to ask Jimmy (concerns over Bitcoin Scaling etc).
Video will go live on July 19th Wednesday 8 pm CST
(view from link below, will also be cast on Ivanâs channel)
Objectives:
Scenarios for Aug 1st
Dispel some rumors / false information that is spreading in the bitcoin community
Theme: Will Aug 1st Lead to a Better Bitcoin?
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Questions
Tell us about yourself How did you get into Bitcoin
Why do we need to fix Bitcoin Scaling? (eg. currently, a large number of transactions create higher fees)
Optimistic Scenario â Locking mechanism etc
Failed Scenario â Betray and chain split
Practical: what do âregularâ people absolutely need to know until the August the 1st? For example: is it safe to transact during that time etc.. (pamblancopainting.com)
How do we think we can heal the wounds and get everyone working together again
What misconceptions do you want to dispel â what do you think people get most confused about
Now that Segwit has been locked in for Litecoin. it’s about time to take a closer look at what Segwit is and how it improves Litecoin. Here is a very brief introduction of what Segwit – it is please forgive me if it’s a little bit too simplistic but I want to try to summarize it in very easy to understand terms.
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What is Segwit?
If you consider of Bitcoin miners as accountants that process all the transactions that happen on the network and bundles them up into a ledger called the blockchain. Then the Segwit is a change to the ledger. Â Think of it as a tax form. Â Itâs the act of removing of a signature from the form and placing it into a separate form. That’s all it is. Segregation of witness – the removal the signature on a form and placing it elsewhere. By taking out the signature, you create additional room on the ledger to fit more transactions.
Why Adopt Segwit?
Segwit is vital for the Bitcoin network where transactions are taking a long time because there isnât enough room on each ledger (block) to place all the transactions. Litecoin doesnât have this problem. Instead, Segwit was adopted to allow for technologies such as the Lightning Network.
Segwit is a technological upgrade, and I can see why miners will go crazy over this. Especially when miners are the ones who decide to adopt this or not. Consider like an association of tax accounts trying to approve a new form. Accountants donât like each other already, and they must all agree on a substantial change to a tax form. It turns out for Litecoin it was possible to persuade the miners to agree with each other, whilst for Bitcoin, it’s not yet possible as there is much more drama.
The Post-Segwit World
Now that Segwit is locked in for Litecoin, there are substantial changes in currency price (generally in the upward direction). Of course, must take this with a slight grain of salt. Litecoin prices are susceptible to financial manipulations such as the good old pump and dump.  Litcoin is getting a lot of media attention. This means there will be a lot of new investors that still don’t understand the consequences of Segwit or how Lightning Networks work. Some will overvalue it while others are indifferent. The most important thing is to understand what Segwit is and learn more about the Lightning Network.
