What is Ethereum (ETH) - Simple Explanation for Beginners

Explanation of Token allocation distribution to board members by fujio.presale is on,Buy your xf tokens now ! #blockchain#btc#crypto#cryptocurrency#bitcoin#ICO#fintech#Ethereum#IoT#AI#BigData#altcoin#ETH#crowdsale#token#tokens#tokensale#crowdsale#preICO#presale#dogecoin

Explanation of Token allocation distribution to board members by fujio.presale is on,Buy your xf tokens now ! #blockchain#btc#crypto#cryptocurrency#bitcoin#ICO#fintech#Ethereum#IoT#AI#BigData#altcoin#ETH#crowdsale#token#tokens#tokensale#crowdsale#preICO#presale#dogecoin submitted by lilodan to xeonframe [link] [comments]

@coinschedule : RT @JeroenBartelse: Very clear explanation of Blockchain in this @Reuters visual guide https://t.co/6eveeefYtp #Blockchain #crypto #cryptocurrency #ethereum #Bitcoin https://t.co/PRheUjLROU

@coinschedule : RT @JeroenBartelse: Very clear explanation of Blockchain in this @Reuters visual guide https://t.co/6eveeefYtp #Blockchain #crypto #cryptocurrency #ethereum #Bitcoin https://t.co/PRheUjLROU submitted by coinschedule to CoinSchedule [link] [comments]

Coinbase is Planning to Launch an Ethereum Messaging App - Poloniex To Delist 17 Altcoins In May Without Explanation - Chinese Bitcoin Exchange OKCoin Suspends Wire Transfers - Nasdaq Wants to Invest in More Blockchain Startups

submitted by cryptocompare to cryptocompare [link] [comments]

Swipe introduces Product Manual with New Products, Card Tiers, and more!

Swipe introduces Product Manual with New Products, Card Tiers, and more!

https://preview.redd.it/hvp70trukag51.png?width=700&format=png&auto=webp&s=390be8bbcb5fdea99a744cae0ff5b27853acf83a
Swipe is thrilled to announce that it has released a new “redefined” white paper under: Swipe Product Manual. The Swipe Product Manual was designed with simplicity in mind for easy and coherent descriptions of the Swipe ecosystem of products. White papers tend to be bulky, mixed with content that the average user will not digest and understand. The typical cryptocurrency buyer or person looking to get into cryptocurrency, are not too found of the technicals behind a protocol, but more how the protocol will work described in a way for a layman person. This is how Swipe believes in working towards mass adoption.
With this in mind, instead of filling our white papers with technical resources and explanations, we decided to take a different approach and go with a Product Manual style design. This will describe all of our current and future products that we have planned and the overall summary of each one. Technical descriptions and documentation will be made available, as required, per protocol as some will have API access for developers.
Please bare in mind that this is a working document and may be subject to improvements and/or changes.

Summary of Updates

Swipe Products Available Today

  • Swipe Wallet
  • Swipe Card
  • Swipe Issuing

Swipe Products Launching Soon

  • Swipe Pay
  • Swipe Credit
  • Swipe Savings
  • Swipe Decentralized Applications (Governance, Swap, Staking, SwipeFi)

Swipe Card New Tiers

  • Swipe Saffron — 0 SXP Stake
  • Swipe Sky — 300 SXP Stake
  • Swipe Steel — 3,000 SXP Stake
  • Swipe Saffron — 30,000 SXP Stake
The new Swipe Card Tiers will give users more options to select a card program that suits their needs and budgets.
Swipe is also excited to announce that our card programs now give up to 5% cash back in Bitcoin with benefits such as:
  • 100% Rewards Rebates on Amazon Prime, Apple Music, Spotify, Netflix, and Hulu memberships*
  • 10% Rewards Rebates on Starbucks, Uber, and Airbnb, and Travala.com*
The Swipe Product Manual can be viewed by clicking here or by going to https://sw.pe/ProductManual or downloading https://swipe.io/ProductManual.pdf to your desktop.

Swipe Token Upgrade

Swipe SXP Token will go through a token upgrade to a new v2 token contract on the Ethereum blockchain that will destroy and remove all admin keys and make the protocol fully decentralized with control through on-chain governance using SXP. This upgrade will also pave the way for use on the Swipe DApps which will be interconnected to the v2 token contract. This upgrade will require users to utilize an exchange, custodial wallet provider, or a swap tool we will release and open-source.
Swipe will provide a more detailed guide on the token upgrade and announce it on all of our social channels once ready.
---
Stay up-to-date with all the latest news from Swipe
Website: https://swipe.io
Twitter: https://twitter.com/SwipeWallet
Facebook: https://facebook.com/Swipe
Instagram: https://instagram.com/Swipe
Medium: https://medium.com/Swipe
Telegram: https://t.me/SwipeWallet & https://t.me/Swipe
LinkedIn: https://www.linkedin.com/company/swipewallet
YouTube: https://youtube.com/SwipeWallet
submitted by SwipeWallet to Swipe_io [link] [comments]

6 Reasons Why Serum Won't Succeed

6 Reasons Why Serum Won't Succeed

The world of DeFi is exploding but is it all it’s made out to be?

DeFi (decentralised finance) is most certainly the buzz in the crypto world this minute. It’s bringing similar feelings which was the 2017/18 ICO phase, where a mammoth of new projects begun to explode onto the scene, each with their own promise of new innovation and use case.
Hindsight has shown us that most of those projects have ultimately failed, or worse, were outright scams that took advantage of not so wise investors looking to make a buck. Obviously, not all projects fit that description, with many teams still around today working on and delivering their individual visions. Crypto is, after all, still a big experiment of new technology.

Enter DeFi: Serum

DeFi has exploded into the limelight over the last few months, with some tokens appreciating hundreds of percent in price. It appears to be the catalyst that has driven a huge market shift in the crypto world, and for those who’ve been around a number of years, this is a welcome change.
In this piece, I’m going to examine a particular project called Serum.
Serum is the world’s first completely decentralized derivatives exchange with trustless cross-chain trading brought to you by Project Serum.
The Serum Project is aiming to create both a decentralised exchange and a cross-chain swapping mechanism. In this article, I’m going to focus solely on the cross-chain swapping aspect of Serum.
Although the Serum whitepaper is quite short and lacking in detail, it is useful to derive some understanding of how the cross-chain swapping protocol should work. Throughout this review, I will use it to describe how the imagined protocol works.

Overview

Let's assume Alice wants to trade some BTC for ETH and Bob wants to trade some ETH for BTC using Serum. These two users are matched and agree on a price using an on-chain order book on the Solana blockchain (whitepaper provides no practical details on how to do this).
Once these users are matched, Bob must send the ETH he wants to trade to an Ethereum smart contract, plus some amount of ETH ~200 USD worth (see section 4 below) to the smart contract as collateral. Alice will also need to send some collateral to the smart contract. Once this initial setup process is complete Alice then has to send her BTC to Bob’s BTC address and if Bob receives the BTC from Alice he can then release his ETH from the smart contract sending it to Alice’s ETH address. Upon completion of this both Alice and Bob are refunded their ETH collateral.
So what happens if something goes wrong? For example, say Alice never sends BTC to Bob, after some period of time Bob can initiate a dispute. When the dispute begins both Alice and Bob present a portion of the Bitcoin blockchain information to the smart contract (see section 3). The smart contract then decides whether or not Alice did send BTC to Bob. If she hasn’t then the smart contract returns Bob's ETH and collateral to Bob and also takes Alice’s ETH collateral and gives that to Bob. The same occurs in reverse if Alice sends BTC but Bob never approves the transfer of ETH from the smart contract.
This scheme seems pretty simple, there’s no oracles and no centralised parties, however, it has a number of disadvantages.

1. User-Provided Collateral Is Bad for User Experience

Each time a user conducts a swap they must reserve some percentage or fixed amount to cover the collateral for the swap. This collateral amount needs to be present to prevent griefing attacks where users initiate swaps with no intention of ever following through and sending funds to the alternate participant.
However, this creates a poor user experience as both Alice and Bob need to have at least the value of the dispute fee committed to the contract in collateral before they conduct a swap. This is totally foreign from the normal exchange experience in which you only require a single coin and a single transaction to begin trading. For example, if using Serum to trade Bitcoin you would need to hold Bitcoin and ~200$ of Ethereum and also interact with the Ethereum chain before any swap occurs. This adds unnecessary complexity and confusion, especially for newcomers to the crypto space.

2. ETH Must Always Be on One Side of the Swap

Although the Serum method of cross-chain swapping could occur on any blockchain with smart contracts, the Serum whitepaper makes it clear the Serum arbitration contract is going to be deployed on the Ethereum blockchain. This means one party must always be locking the full value of the trade in ETH using an Ethereum smart contract.
This makes it impossible, for example, to do a single step trade between Bitcoin and Monero since the swap would need to be from Bitcoin to ETH first and then from ETH to Monero. This is comparable to other proposed cross-chain swap systems like Thorchain and Blockswap, however since those networks use AMM’s (automated market makers)and decentralized vaults to take custody of funds, the user needs not to interact with the intermediary chain at all.
Instead in Serum, the user wanting to swap Bitcoin to Monero will need to do the following steps:
  1. Send Ethereum collateral to the Serum arbitration contract
  2. Send Bitcoin to the user they are swapping with.
  3. Receive Ethereum
  4. Send Ethereum back to Serum arbitration contract
  5. Receive Monero
  6. Send Ethereum out of Serum arbitration contract
  7. Receive back Ethereum collateral
It might be possible to remove or simplify step 4, depending on how the smart contract is built, however, this means a swap from BTC to Monero would require 2 Ethereum and 1 Bitcoin transaction in the best-case scenario. Compared with the experience of other cross-chain swapping mechanisms, which only require the user to send a single transaction to swap between two assets, this is very poor user experience.

3. Proving Transactions on Arbitrary Chains to a Smart Contract Is Not Trivial

Perhaps the most central part of the Serum cross-chain swapping mechanism is left completely unexplored in the Serum whitepaper with only a brief explanation given.
“[The] Smart Contract is programmed to parse whether a proposed BTC blockchain is valid; it can then check which of Alice and Bob send the longer valid blockchain, and settle in their favor”
This is not a trivial problem, and it is unclear how this actually works from the explanation given in the Serum whitepaper. What actually needs to be presented to the smart contract to prove a Bitcoin transaction? Typically when talking about SPV the smart contract would need the block headers of all previous blocks and a merkle inclusion proof. This is far too heavy to submit in a dispute. Instead, Serum could use NIPoPoW, however, these proofs only work on chains with fixed difficulty and are still probably prohibitively too large (~100KB) to be submitted as a proof to a contract. Other solutions like Flyclient are more versatile, but proof sizes are much larger and have failed to see much real-world adoption.
Without explaining how they actually plan to do this validation of Bitcoin transactions, users are left in the dark about how secure their solution actually is.

4. High Dispute Fees Force Large Collateral on Small Trades

Although disputes should almost never happen because of the incentives and punishments designed into the Serum protocol, the way they are designed has negative impacts on the use of the network.
Although the Serum whitepaper does not say how the dispute mechanism works, they do say that it will cost about ~100 USD in GAS to dispute a swap.
Note: keep in mind that the Serum paper was published in July 2020 when the gas price was about 50 Gwei, as Ethereum use has picked up over the past month we have seen average GAS prices as high as 250 Gwei, with the average price right now about 120 Gwei.
This means that at the height of GAS prices it could have cost a user ~500 USD to dispute a swap.
This means for the network to ensure losing cross-chain swaps aren’t made each user must deploy at least $200 in collateral on each side. It may be possible to lower this to collateral if we assume the attacker is not financially motivated, however, there is a lower bound in which ransom attacks become possible on low-value trades.
Further and perhaps more damagingly, this means in a trade of any size the user needs to have at least 300 USD in ETH laying around. 100 USD in ETH for the required collateral and 200 USD if they need to challenge the transaction.
This further adds to the poor user experience when using Serum for cross-chain swapping.

5. Swaps Are Not Set and Forget

Instead of being able to send a transaction and receive funds on the blockchain you are swapping to, the process is highly interactive. In the case where I am swapping ETH for Bitcoin, the following occurs:
If the Bitcoin transaction is never received then I need to wait for a timeout to occur before I can participate in the dispute process.
And on the Bitcoin side (assuming the seller is ready), the following must take place:
If the Seller never accepts the Bitcoin I sent to him then I need to wait on line for the dispute process.
This presents a strange user experience where the seller or seller’s wallet must be left online during this whole process and be ready to sign a new transaction if they need to dispute transactions or unlock funds from a smart contract.
This is different from the typical exchange or swapping scenario in which, once your funds are sent you can be assured you will receive the amount you expected in your swap back to you, without any of your wallets needing to remain online.

6. The Serum Token Seems to Lack a Use Case

The cross-chain swapping protocol Serum describes in its whitepaper could easily be forked and launched on the Ethereum blockchain without having any need for the Serum token. It seems that the Serum token will be used in some capacity when placing orders on the Solana based blockchain, however, the order book could just as easily be placed off with traditional rate-limiting schemes.
There is some brief mention of future governance abilities for token holders, however, as a common theme in their whitepaper, details are scarce:
Serum is anticipated to include a limited governance model based on the SRM token. While most of the Serum ecosystem will be immutable, some parameters without large security risks (e.g. future fees) may be modified via a governance vote of SRM tokens.

Conclusion

Until satisfactory answers are given to these questions I would be looking at other projects who are attempting to build platforms for cross-chain swaps. As previously mentioned, Thorchain & Blockswap show some promise in design, whilst there are some others competing in this space too, such as Incognito and RenVM. However, this area is still extremely immature so plenty of testing and time is required before we can call any of these projects a success.
If you’ve got any feedback or thoughts about Serum, cross-chain swapping or DeFi in general, please don’t be shy in leaving a comment.
submitted by Loooong_Loooong_Man to CryptoCurrency [link] [comments]

Cryptocurrency Books You Must Read

Cryptocurrency Books You Must Read
When you go out into Internet space to look for some information on the crypto world, you may end up being confused and baffled. Suddenly, everyone’s an expert and each has something to say about it. Without a basic knowledge of the technology, your lack of knowledge may backfire on you one day if you get into the clingy paws of ICO internet scammers, so before you invest, it is important to learn some of the basics and fundamentals.
by StealthEX
Here is a heap of cryptocurrency books we recommend you to read to nurture your crypto side of the brain:

Digital Gold by Nathaniel Popper

In his shortlisted for the 2015 Financial Times and McKinsey business book of the year, Popper tells us the story of bitcoin since its early days. He tells the story through the eyes of famous and bright crypto influencers including South American and Asian millionaires, the Winklevoss twins and the legendary Satoshi Nakamoto. The author compares the digital currency to gold, claiming cryptocurrency to be the new global standard of storing the value.
Some readers say that Digital Gold book is a ready material for a thriller – unexpected plot twists, powerful influential organizations, drugs, blackmail make up the fascinating story to read and a really good starting point to understand what Bitcoin and Blockchain Technology is. The only downside that it only takes you up to 2015 but don’t worry, those were jam-packed years of growing.

The Internet of Money by Andreas Antonopoulos

Even though Andreas Antonopoulos is one of the world’s foremost bitcoin and blockchain experts, he has a unique talent to simply explain complicated materials herewith maintaining the significance of the topic. For readers who want to explore more theory, The Internet of Money book is actually a collection of talks given by technology-enthusiast Andreas Antonopoulos, where he surpasses all the technical “geeky” details. In each section he delivers complex discussions in average words, exploring the economic, political, social and philosophical sides of the technology that has forever affected our world.
By the way, the book was released in 3-volume series so you won’t miss out on any trivia.

The Little Bitcoin Book: Why Bitcoin Matters for Your Freedom, Finances, and Future by Alejandro Machado, Jimmy Song, Alena Vranova, Timi Ajiboye, Luis Buenaventura, Lily Liu, Alexander Lloyd, Alex Gladstein

Why does the price keep changing? Is Bitcoin worth investing my money into? How does it even have value? Why do people keep saying that it is the future of currency? The answers to all these questions you are going to find out in this book written by 8 experienced crypto experts. They finished it in just four days and they did well in accumulating their knowledge in a book format along with covering a lot of different questions and concerns around the digital currency. The book also explains how Bitcoin affects people’s freedom and opportunities. Also, there is a Q & A section with some of the most frequently asked questions about Bitcoin.

Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond by Chris Burniske & Jack Tatar

The book provides a useful framework on some popular cryptocurrencies such as Bitcoin, Litecoin, Ethereum, Ripple, etc. and also explains why and how to invest and what would be the best thing to invest into. The authors make a major focus on investment strategies that really work, and teach you on fundamental notions like volume, liquidity and volatility of crypto coins. The authors use infographics, equations, historical data and statistics to teach you about crypto assets and markets.
This crypto book is as suitable for the beginners as for the advanced investors. It’s written in a straight forward style and will probably serve as a good reference for the future.

Mastering Bitcoin: Programming the Open Blockchain by Andreas M. Antonopoulos

Another Andreas Antonopoulos book but at this time an intermediate level. If you want a technical explanation, with code samples – get this book, Mastering Bitcoin is for people who already have a programming or computer science background. Well-delivered, useful and enlightening – the book takes you through the intricate world of bitcoin, providing the knowledge you need to participate in the internet of money. Whether you’re a software developer, startup investor, or simply curious about the technology, this edition is definitely worth your attention!

The Bitcoin Standard: The Decentralized Alternative to Central Banking by Saifedean Ammous

This is a book written by a world-class economist Saifedean Ammous, where he explains how money works, why some money works better than the others and how monetary systems evolved throughout history – from ancient times to our days.
Some people call it an eye-opening book, which would make you overthink the concept of money in general. Anyway, the book certainly is thought-provoking and it might induce you to dive deeper into the crypto world. The author doesn’t try to predict the future of money but to widen our horizon, to understand the problem of our economic system, and see the possibility of having a decentralized alternative to central banking.

The Book Of Satoshi: The Collected Writings of Bitcoin Creator Satoshi Nakamoto by Phil Champagne

Have you ever wondered who stands behind the whole crypto industry? Who made it all possible? The fun thing is that nobody knows. All we know is the name – Satoshi Nakamoto. In his book, Champagne dives deeper into his mysterious personality and investigates who Nakamoto might be, whether it is one person or a group, and how it was possible for Nakamoto to create the game-changing Bitcoin while remaining completely anonymous. The book includes actual emails and internet posts by Nakamoto, presented in chronological order. Fine resource for anyone interested in Bitcoin, it gives insight into Satoshi’s thinking, and readers can look at Bitcoin from a whole new perspective!
And speaking of Bitcoin, if you need to exchange your BTC and many other coins, StealthEX is here for you. We provide a selection of more than 250 cryptocurrencies and constantly updating the list so that our customers will find a suitable option. Our service does not require registration and allows you to remain anonymous. Why don’t you check it out? Just go to StealthEX and follow these easy steps:
✔ Choose the pair and the amount for your exchange. For example ETH to BTC.
✔ Press the “Start exchange” button.
✔ Provide the recipient address to which the coins will be transferred.
✔ Move your cryptocurrency for the exchange.
✔ Receive your coins.
Follow us on Medium, Twitter, Facebook, and Reddit to get StealthEX.io updates and the latest news about the crypto world. For all requests message us via [email protected].
The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Original article was posted on https://stealthex.io/blog/2020/09/01/cryptocurrency-books-you-must-read/
submitted by Stealthex_io to StealthEX [link] [comments]

Ethereum /r/ETH FAQs

This post covers some frequently asked questions about Ethereum (ETH). All of these FAQs come directly from the ETH Docs. For a complete list of FAQs and information, please visit and review https://ethdocs.org. See the sidebar for more resources and subreddit rules.

What is Ethereum?

Ethereum is a decentralized smart contracts platform that is powered by a cryptocurrency called Ether. A good starting point to learn more about its workings would be the “What is Ethereum?” page.

Is Ethereum based on Bitcoin?

Only in the sense that it uses a blockchain, which Bitcoin pioneered. Ethereum has a separate blockchain that has several significant technical differences from Bitcoin’s blockchain. See this Ethereum StackExchange answer for a detailed explanation.

What’s the future of Ethereum?

Ethereum developers are planning a switch from a Proof-of-Work consensus model to a Proof-of-Stake consensus model in the future. They are also investigating scalability solutions and how to store secrets on the blockchain.

What’s the difference between account and “wallet contract”?

An account is your public / private key pair file that serves as your identity on the blockchain. See “account” in the glossary. A “wallet contract” is an Ethereum contract that secures your ether and identity with features such as multisignature signing and programmed deposit/withdrawal limits. A wallet contract can be easily created in the Mist Ethereum Wallet GUI client.

Can a contract pay for its execution?

No this is not possible. The gas for the execution must be provided by the address submitting the execution request.

Can a contract call another contract?

Yes, this is possible, read about interactions between contracts.

How will Ethereum deal with ever increasing blockchain size?

There are many discussions around blockchain scalability. This questioned has been partially answered on this Ethereum StackExchange post and this blog post from Vitalik Buterin.

How will Ethereum ensure the network is capable of making 10,000+ transactions-per-second?

Ethereum is planning on implementing a proof-of-stake consensus protocol change during the Serenity phase of their development roadmap. More information on the likely Ethereum PoS candidate and how it may increase transactions-per-second can be found here.
submitted by BitcoinXio to eth [link] [comments]

BitcoinBCH.com accidentally publishes on-chain proof that they fake BCHs adoption metrics. Post to r/btc gets deleted and OP is now permanently banned.

Everybody who has posted this on btc has been banned according to modlog. Total of 9 users so far. Don't post this on btc or you will get banned. If you get banned comment on this thread or PM me.

May 2020:

According to btc modlogs, mc-78 has been banned because he questioned the April report with this comment.

According to btc modlogs, BCH4TW has been banned because he questioned the April report with this comment.

March 2020:

According to btc modlogs, bch4god has been banned because he questioned the February report with this comment.

According to btc modlogs, ISeeGregPeople has been banned because he linked to this thread in his comment.

February 2020:

According to btc modlogs, whene-is-satoshi has been banned because he linked to this thread in his comment.

January 2020:

According to btc modlogs, cryptokittykiller's post has been removed for linking to this thread.

According to btc modlogs, bashcalf has now been banned for linking to this thread.

According to btc modlogs, EnterLayer2 has now been banned for this post pointing out that this thread has reached 1000 upvotes.

This article was posted by bitcoinsatellite on btc here. Once it reached frontpage it got deleted and OP was banned from btc and bitcoincash as a result.

Disclaimer: I am not and have never been affiliated with any of the mentioned parties in a private or professional matter.
Presumably in an attempt to smear a local competitor, Hayden Otto inadvertently publishes irrefutable on-chain proof that he excluded non-BCH retail revenue to shape the "BCH #1 in Australia" narrative.
  • Scroll down to "Proof of exclusion" if you are tired of the drama recap.
  • Scroll down to "TLDR" if you want a summary.

Recap

In September 2019, BitcoinBCH.com started publishing so called monthly "reports" about crypto retail payments in Australia. They claimed that ~90% of Australia's crypto retail revenue is processed via their own HULA system and that ~92% of all crypto retail revenue happens in BCH.
They are aggregating two data sources to come up with this claim.
One is TravelByBit (TBB) who publishes their PoS transactions (BTC, LN, ETH, BNB, DASH, BCH) live on a ticker.
The other source is HULA, a newly introduced POS system (BCH only) and direct competitor to TBB run by BitcoinBCH.com - the same company who created the report. Despite being on-chain their transactions are private, not published and not verifiable by third parties outside BitcoinBCH.com
Two things stood out in the "reports", noted by multiple users (including vocal BCH proponents):
  • The non-BCH parts must have tx excluded and the report neglects to mention it (the total in their TBB analysis does not match what is reported on the TBB website.)
  • The BCH part has outliers included (e.g. BCH city conference in September with 35x the daily average)
The TBB website loads the historic tx data in the browser but hides transactions older than 7 days from being displayed, i.e. you can access more than 7 days worth of data if you understand JavaScript and can read the source code (source).

Hayden Otto's reaction

In direct response to me publishing these findings on btc, Hayden Otto - an employee at BitcoinBCH.com and the author of the report who also happens to be a moderator of /BitcoinCash - banned me immediately from said sub (source).
In subsequent discussion (which repeated for every monthly "report" which was flawed in the same ways as described above), Hayden responded using the same tactics:
"No data was removed"
"The guy is straight out lying. There is guaranteed no missing tx as the data was collected directly from the source." (source)
"Only data I considered non-retail was removed"
"I also had these data points and went through them to remove non-retail transactions, on both TravelbyBit and HULA." (source)
He admits to have removed non-BCH tx by "Game Ranger" because he considers them non-retail (source). He also implies they might be involved in money laundering and that TBB might fail their AML obligations in processing Game Ranger's transactions (source).
The report does not mention any data being excluded at all and he still fails to explain why several businesses that are clearly retail (e.g. restaurants, cafes, markets) had tx excluded (source).
"You are too late to prove I altered the data"
"[...] I recorded [the data] manually from https://travelbybit.com/stats/ over the month of September. The website only shows transactions from the last 7 days and then they disappear. No way for anyone to access stats beyond that." (source)
Fortunately you can, if you can read the website's source code. But you need to know a bit of JavaScript to verify it yourself, so not an ideal method to easily prove the claim of data exclusion to the public. But it laters turns out Hayden himself has found an easier way to achieve the same.
"The report can't be wrong because it has been audited."
In response to criticism about the flawed methodology in generating the September report, BitcoinBCH.com hired an accountant from a regional Bitcoin BCH startup to "audit" the October report. This is remarkable, because not only did their reported TBB totals still not match those from the TBB site - their result was mathematically impossible. How so? No subset of TBB transaction in that month sums up to the total they reported. So even if they excluded retail transactions at will, they still must have messed up the sum (source). Why didn't their auditor notice their mistake? She said she "conducted a review based on the TravelByBit data provided to her", i.e. the data acquisition and selection process was explicitly excluded from the audit (source).
"You are a 'pathetic liar', a 'desperate toll', an 'astroturf account' and 'a total dumb ass' and are 'pulling numbers out of your ass!'"
Since he has already banned me from the sub he moderates, he started to resort to ad hominems (source, source, source, source).

Proof of exclusion

I published raw data as extracted from the TBB site after each report for comparison. Hayden responded that I made those numbers up and that I was pulling numbers out of my ass.
Since he was under the impression that
"The website only shows transactions from the last 7 days and then they disappear. No way for anyone to access stats beyond that." (source)
he felt confident to claim that I would be
unable to provide a source for the [missing] data and/or prove that that data was not already included in the report. (source)
Luckily for us Hayden Otto seems to dislike his competitor TravelByBit so much that he attempted to reframe Bitcoin's RBF feature as a vulnerability specific to TBB PoS system (source).
While doublespending a merchant using the TBB PoS he wanted to prove that the merchant successfully registered the purchase as complete and thus exposed that the PoS sales history of TBB's merchants are available to the public (source), in his own words:
"You can literally access it from a public URL in the Web browser. There is no login or anything required, just type in the name of the merchant." (source)
As of yet it is unclear if this is intentional by TBB or if Hayden Ottos followed the rules of responsible disclosure before publishing this kind of data leak.
As it happens, those sale histories do not only include the merchant and time of purchases, they even include the address the funds were sent to (in case of on-chain payments).
This gives us an easy method to prove that the purchases from the TBB website missing in the reports belong to a specific retail business and actually happened - something that is impossible to prove for the alleged HULA txs.
In order to make it easier for you to verify it yourself, we'll focus on a single day in the dataset, September 17th, 2019 as an example:
  • Hayden Otto's report claims 20 tx and $713.00 in total for that day (source)
  • The TBB website listed 40 tx and a total of $1032.90 (daily summary)
  • Pick a merchant, e.g. "The Stand Desserts"
  • Use Hayden's "trick" to access that merchants public sale history at https://www.livingroomofsatoshi.com/merchanthistory/thestanddesserts, sort by date to find the 17th Sep 2019 and look for a transaction at 20:58 for $28. This proves that a purchase of said amount is associated with this specific retail business.
  • Paste the associated crypto on-chain address 17MrHiRcKzCyuKPtvtn7iZhAZxydX8raU9 in a blockchain explorer of your choice, e.g like this. This proves that a transfer of funds has actually happened.
I let software aggregate the TBB statistics with the public sale histories and you'll find at the bottom of this post a table with the on-chain addresses conveniently linked to blockchain explorers for our example date.
The total of all 40 tx is $1032.90 instead of the $713.00 reported by Hayden. 17 tx of those have a corresponding on-chain address and thus have undeniable proof of $758.10. Of the remaining 23, 22 are on Lightning and one had no merchant history available.
This is just for a single day, here is a comparison for the whole month.
Description Total
TBB Total $10,502
TBB wo. Game Ranger $5,407
TBB according to Hayden $3,737

What now?

The usual shills will respond in a predictive manner: The data must be fake even though its proof is on-chain, I would need to provide more data but HULA can be trusted without any proof, if you include outliers BCH comes out ahead, yada, yada.
But this is not important. I am not here to convince them and this post doesn't aim to.
The tx numbers we are talking about are less than 0.005% of Bitcoin's global volume. If you can increase adoption in your area by 100% by just buying 2 coffees more per day you get a rough idea about how irrelevant the numbers are in comparison.
What is relevant though and what this post aims to highlight is that BitcoinBCH.com and the media outlets around news.bitcoin.com flooding you with the BCH #1 narrative are playing dirty. They feel justified because they feel that Bitcoin/Core/Blockstream is playing dirty as well. I am not here to judge that but you as a reader of this sub should be aware that this is happening and that you are the target.
When BitcoinBCH.com excludes $1,000 Bitcoin tx because of high value but includes $15,000 BCH tx because they are made by "professionals", you should be sceptical.
When BitcoinBCH.com excludes game developers, travel businesses or craftsmen accepting Bitcoin because they don't have a physical store but include a lawyer practice accepting BCH, you should be sceptical.
When BitcoinBCH.com excludes restaurants, bars and supermarkets accepting Bitcoin and when pressed reiterate that they excluded non-retail businesses without ever explaning why a restaurant shouldn't be considered reatil, you should be sceptical.
When BitcoinBCH.com claims the reports have been audited but omit that the data acquisition was not part of the audit, you should be sceptical.
I expect that BitcoinBCH.com will stop removing transactions from TBB for their reports now that it has been shown that their exclusion can be provably uncovered. I also expect that HULA's BCH numbers will rise accordingly to maintain a similar difference.
Hayden Otto assumed that nobody could cross-check the TBB data. He was wrong. Nobody will be able to disprove his claims when HULA's BCH numbers rise as he continues to refuse their release. You should treat his claims accordingly.
As usual, do your own research and draw your own conclusion. Sorry for the long read.

TLDR

  • BitcoinBCH.com claimed no transactions were removed from the TBB dataset in their BCH #1 reports and that is impossible to prove the opposite.
  • Hayden Otto's reveals in a double spend attempt that a TBB merchant's sale history can be accessed publicly including the merchant's on-chain addresses.
  • (For example,) this table shows 40 tx listed on the TBB site on Sep 17th, including their on-chain addresses where applicable. The BitcoinBCH.com report lists only 20 tx for the same day.
  • (Most days and every months so far has had BTC transactions excluded.)
  • (For September, TBB lists $10,502 yet the report only claims $3,737.
No. Date Merchant Asset Address Amount Total
1 17 Sep 19 09:28 LTD Espresso Lightning Unable to find merchant history. 4.50 4.50
2 17 Sep 19 09:40 LTD Espresso Binance Coin Unable to find merchant history. 4.50 9.00
3 17 Sep 19 13:22 Josh's IGA Murray Bridge West Ether 0x40fd53aa...b6de43c531 4.60 13.60
4 17 Sep 19 13:23 Nom Nom Korean Eatery Lightning lnbc107727...zkcqvvgklf 16.00 29.60
5 17 Sep 19 13:24 Nom Nom Korean Eatery Lightning lnbc100994...mkspwddgqw 15.00 44.60
6 17 Sep 19 14:02 Nom Nom Korean Eatery Binance Coin bnb1w5mwu9...552thl4ru5 30.00 74.60
7 17 Sep 19 15:19 Dollars and Sense (Fortitude Valley) Lightning lnbc134780...93cpanyxfg 2.00 76.60
8 17 Sep 19 15:34 Steph's Cafe Binance Coin bnb124hcjy...ss3pz9y3r8 57.50 134.10
9 17 Sep 19 19:37 The Stand Desserts Binance Coin bnb13f58s9...qqc7fxln7s 18.00 152.10
10 17 Sep 19 19:59 The Stand Desserts Lightning lnbc575880...48cpl0z06q 8.50 160.60
11 17 Sep 19 20:00 The Stand Desserts Lightning lnbc575770...t8spzjflym 8.50 169.10
12 17 Sep 19 20:13 The Stand Desserts Lightning lnbc202980...lgqp5ha8f4 3.00 172.10
13 17 Sep 19 20:21 The Stand Desserts Lightning lnbc577010...decq7r4p05 8.50 180.60
14 17 Sep 19 20:24 Fat Dumpling Lightning lnbc217145...9dsqpjjr6g 32.10 212.70
15 17 Sep 19 20:31 The Stand Desserts Lightning lnbc574530...wvcpp3pcen 8.50 221.20
16 17 Sep 19 20:33 The Stand Desserts Lightning lnbc540660...rpqpzgk8z0 8.00 229.20
17 17 Sep 19 20:37 The Stand Desserts Lightning lnbc128468...r8cqq50p5c 19.00 248.20
18 17 Sep 19 20:39 The Stand Desserts Lightning lnbc135220...cngp2zq6q4 2.00 250.20
19 17 Sep 19 20:45 The Stand Desserts Lightning lnbc574570...atcqg738p8 8.50 258.70
20 17 Sep 19 20:51 Fat Dumpling Lightning lnbc414190...8hcpg79h9a 61.20 319.90
21 17 Sep 19 20:53 The Stand Desserts Lightning lnbc135350...krqqp3cz8z 2.00 321.90
22 17 Sep 19 20:58 The Stand Desserts Bitcoin 17MrHiRcKz...ZxydX8raU9 28.00 349.90
23 17 Sep 19 21:02 The Stand Desserts Bitcoin 1Hwy8hCBff...iEh5fBsCWK 10.00 359.90
24 17 Sep 19 21:03 The Stand Desserts Lightning lnbc743810...dvqqnuunjq 11.00 370.90
25 17 Sep 19 21:04 The Stand Desserts Lightning lnbc114952...2vqpclm87p 17.00 387.90
26 17 Sep 19 21:10 The Stand Desserts Lightning lnbc169160...lpqqqt574c 2.50 390.40
27 17 Sep 19 21:11 The Stand Desserts Lightning lnbc575150...40qq9yuqmy 8.50 398.90
28 17 Sep 19 21:13 The Stand Desserts Lightning lnbc947370...qjcp3unr33 14.00 412.90
29 17 Sep 19 21:15 The Stand Desserts Binance Coin bnb1tc2vva...xppes5t7d0 16.00 428.90
30 17 Sep 19 21:16 Giardinetto Binance Coin bnb1auyep2...w64p6a6dlk 350.00 778.90
31 17 Sep 19 21:25 The Stand Desserts BCH 3H2iJaKNXH...5sxPk3t2tV 7.00 785.90
32 17 Sep 19 21:39 The Stand Desserts Binance Coin bnb17r7x3e...avaxwumc58 8.00 793.90
33 17 Sep 19 21:47 The Stand Desserts BCH 32kuPYT1tc...uFQwgsA5ku 18.00 811.90
34 17 Sep 19 21:52 The Stand Desserts BCH 3ELPvxtCSy...4QzvfVJsNZ 36.00 847.90
35 17 Sep 19 21:56 The Stand Desserts Lightning lnbc677740...acsp04sjeg 10.00 857.90
36 17 Sep 19 22:04 The Stand Desserts BCH 38b4wHg9cg...9L2WXC2BSK 54.00 911.90
37 17 Sep 19 22:16 The Stand Desserts Binance Coin bnb14lylhs...x6wz7kjzp5 18.00 929.90
38 17 Sep 19 22:21 The Stand Desserts BCH 3L8SK3Hr7u...F3htdSPxfL 90.00 1019.90
39 17 Sep 19 22:30 The Stand Desserts Binance Coin bnb19w6tle...774uknv57t 5.00 1024.90
40 17 Sep 19 22:48 The Stand Desserts BCH 3Qag8c4UYg...9EYuWzGjhs 8.00 1032.90
submitted by YeOldDoc to CryptoCurrency [link] [comments]

A breakdown of the aelf blockchain whitepaper — Part 2

A breakdown of the aelf blockchain whitepaper — Part 2

https://preview.redd.it/p9cf7c4cpri51.png?width=512&format=png&auto=webp&s=006d466a2d0ad4d4afbbffe340eb2ad44631ad27

Breaking down the aelf side-chain

Cloud computing, parallel processing, and AEDPoS have greatly improved the execution performance of any kind of smart contract, but when they are applied to enterprise-level scenarios, new problems crop up. To begin with, in software design, it is a rather bad idea to program all the methods in the same class. We always write a series of classes to inherit a base class, in order to decouple the functionalities and make the class extensible whenever needed. The same also applies to blockchain design. Second, since all the data and transactions are accessible to anyone through a blockchain explorer, if we put the smart contract and data of different enterprises or government sectors on a single blockchain, then everyone can see them, which means there will be no data privacy. Although there are encryption techniques which can mask data, such as zero knowledge proof, it is always better to put the data of different enterprises on different blockchains.
Based on these considerations, long before other projects even realized it, aelf proposed that side-chain technology should be applied to this scenario. Unfortunately, for someone who is new to blockchain, it is almost impossible to understand how side-chain works. Side-chain is not what it literally means, it is not subordinate to the main chain. On the contrary, a side chain is a blockchain distributed system with the same functions and nodes as a main chain (say, the aelf blockchain). As mentioned above, we can put the data of different enterprises on different blockchains. This means we can build many blockchains, and work magic (of course not magic in its literal sense) to make these chains connect to the aelf main chain (in fact, we can call any of these blockchains a main chain and the rest side chains). Currently, the most popular method of connecting any two blockchains, which we also call cross-chain, is using a middle-man. When we want to use bitcoin to play a decentralized game on Ethereum, we need to send a transaction with some amount of bitcoin to a locking bitcoin address, then the middle-man will exchange the locked BTC for ETH at a certain exchange rate and allocate to you the equivalent amount of ETH on Ethereum, which you can use for playing games.
But in aelf, we use a metadata indexing method, which is more straightforward. Unlike other projects who built on the blockchains of those already successful projects (such as Ethereum or the HyperLedger fabric framework for consortium blockchains), the aelf team has writen all the code and build the infrastructure from scratch. From the beginning, the aelf team has defined how the data structure of a blockchain, a block, a transaction etc. should look like in C#. In an aelf blockchain data structure, there is an attribute called blockchain ID, which is a unique hash; and in block data structure, there are several attributes called blockchain ID , Merkle tree root and related side chain block list. There is also one more important thing: all of aelf’s data structures are serialized and stored in Redis (a popular key-value pair database system), so is the side chain information. As a result, as the aelf main chain is growing with block production by BPs, other side chains can send transactions to cross-chain contracts, which then execute the related code to connect to the main chain’s network port and request the main chain to index the side chain block and pay the indexing fee.
The core issue here is how to index a side chain: when a main chain (the block data structure on the main chain, or the data records with main chain ID in Redis), receives a request from a side chain, it adds the side chain’s block head data structure to the related side chain block list, which means theoretically we have indexed or related a side chain. We have mentioned that there is also a blockchain ID in each block, this attribute allows a main chain to index blocks from different side chains. When a user on a main chain wants to access data on a side chain or vise versa, they just need to find the target block on the main chain and its related side chain block list, and then find the target block on the side chain via key indexing.
As we will explain later, blockchains for different application scenarios generate blocks at different speeds. Under such circumstances, a chain with slower speed might index many blocks from a chain that produces blocks faster. This method can be applied to scenarios such as forking.
In practice, we can build any number of blockchains, and relate it via indexing to the aelf main chain, with a specific category of smart contracts running on each of them. For example, we can allow only banking-related smart contracts deployed on a specific blockchain, and e-commerce smart contracts on another. Our whitepaper summarizes it best:
One chain, one contract.
Moreover, the indexing method can make many blockchains into a hierarchical tree structure, the root being the so-called main chain. That’s because a related blockchain can then again index another blockchain as its side chain, and the process can keep going on. Logically, this is in perfect accordance with hierarchical taxonomy, for example, the financial sector has many subcategories, such as banking, lending, investment and insurance, and under investment banking, there are venture capital, investment bank etc… Each subcategory is supported by an indexed blockchain.
So how do these blockchains collaborate in a distributed system? First we need to be know that any node in a distributed system is just a software instance running on your computer, or a process. In TCP/IP, a node is allocated a port number, so we can run any number of this type of instances on a computer. However, each instance has its own port number: we can run several blockchain nodes, one IPFS node, one bit-torrent node and etc. simultaneously. In aelf, you should first start a main chain instance, and then you can build and run a side chain instance. Transactions broadcast on the side chain are collected by the BP nodes (block production nodes) on the main chain. When smart contracts deployed on the side chain is triggered, the BP and full nodes on the main chain will run them.

Aelf — a blockchain based operating system

To perfect the design of our software system, aelf made the system extensible, flexible and pluggable. Just as there are thousands of Linux OS with only one Linux kernel. As Ethereum Founder Vitalik Buterin has explained, Ethereum can be seen as a world computer because there are lots of smart contracts running on it, and the contract execution results are consistent in all the distributed systems around the world. This idea is also embedded in aelf’s system and we call it a “blockchain infrastructure operating system”, or a distributed operating system.
Just like any OS, aelf has a kernel and a shell. In fact, aelf’s kernel is not something like a Linux kernel, it is just an analogy. There is a special concept in aelf’s kernel called the minimum viable blockchain system, which defines the most fundamental aspect of a blockchain. If a developer wants to create a new blockchain system or a new blockchain project, he does’t have to start from scratch, instead, he can directly extend and customize using the aelf blockchain open-source code. The technologies described above are all included in the minimum viable blockchain system. With these, anyone can customize:
  • Block property: block data structure, block packaging speed, transaction data structure, etc.
  • Consensus type: AEDPoS is used by default, but you can also use incentive consensus, like PoW and PoS. And you can also use the consensus of traditional distributed systems, like PoS and Practical Byzantine Fault Tolerance, or PBFT. In fact, the f evil nodes of 3f+1 nodes are the upper limit for any distributed system to reach a consensus, which is called the Byzantine Fault Tolerance, or BFT. In order to do this, there is a specific algorithm, but in 1999, a much more efficient algorithm to reach this consensus came along, that is the PBFT. In scenarios like private blockchain or consortium blockchain where there is no need for a incentive model, PBFT will be a good option.
  • Smart contract collection: In aelf, there are many predefined smart contracts that can be used directly by other contracts, such as token contract, cross-chain contract (also called CCTP, or cross chain transfer protocol), consensus contract, organization voting contracts, etc. Of course, you can also create your own contract with a brand new implementation logic.
  • Others.

Summary

So this is our breakdown of the aelf blockchain whitepaper. In previous articles, we first introduced two basic concepts which are often misinterpreted by other articles. After helping you get these two concepts straight, we then introduced aelf’s vast arsenal of powerful technology. If these articles helped you understand the aelf blockchain better, then I have reached my goal. But I must advise you to read the whitepaper for a more detailed explanation. With all this knowledge at your disposal, I believe you will be much more comfortable developing DApps on aelf.
Check Part 1 here: https://medium.com/aelfblockchain/a-breakdown-of-the-aelf-blockchain-whitepaper-part-1-a63fc2e3e2e7
submitted by Floris-Jan to aelfofficial [link] [comments]

An Article on the State of DAOs - where we stand today and how the term is being used

Since 2016 and the fall of the DAO project, spotlights on DAOs have silently faded until 2019, when it started to gain traction again. During this period of what we call the ‘winter of DAOs’, there was and there still is a general sense of trauma revolving around DAOs and the idea of decentralizing organizations with the help of smart contracts.
In the ‘Beginners Guide to CBDAO’ article, we have explained the term DAO, in layman’s terms, to be an organization which is governed and managed by all members as opposed to having a select few entity or individual(s) governing and making executive decisions indefinitely.
However, this definition does not do justice to the overall concept of DAOs. There exists some room for debate as to what exactly a DAO is and how it operates. Philippe Honigman from DAObase states that each of the words in the term DAO, “can be interpreted in many ways, spawning different definitions of DAOs with emphasis on one aspect or another”.
For instance, the word ‘decentralized’ in the term ‘DAO’ may contain varying meanings as the word does not fully indicate or consider the level of decentralization used on its consensus protocol (these levels are described in the Beginners Guide to CBDAO article). Honigman (DAObase) describes the word ‘decentralized’ to have two varying meanings when it comes to DAOs and these are:
As such, it is not right to assume all DAO projects to be completelydecentralized’ and ‘autonomous’.

So what exactly is a DAO and how can we better describe the term?

To be able to better understand the term, we will have to briefly learn about the history of DAOs and how they emerged. The concept of DAOs were first introduced by Dan Larimer back in 2013 as he was describing Bitcoin to be a ‘Decentralized Autonomous Corporation’, whereby its shareholders would be the holders and its employees would be the miners.
For something to be considered a ‘DAC’, it must have the following measurements met:
DAOs work in the similar sense that:
Now that DACs were a ‘thing’, the blockchain community moved on to discuss about how these DACs could be governed better. Here’s where Vitalik Buterin (Founder of Ethereum) first introduced the idea of a resource-democracy voting mechanism, while he was still working as a writer on the Bitcoin Magazine.
“We can use some kind of resource-democracy mechanism to vote on the correct value of some fact, and ensure that people are incentivized to provide accurate estimates by depriving everyone whose report does not match the “mainstream view” of the monetary reward.” — Vitalik Buterin
As such, an incentivized governance protocol was first introduced for DACs. Ever since, many different types of consensus protocols have emerged and DACs have evolved to become DAOs.
Philippe from DAObase explains that as of today, there are two dominant types of DAOs — protocols and collectives.
“Protocol DAOs enable interested parties to make collective decisions regarding the critical parameters of a crypto-network based on an open-source protocol: blockchain protocols such as Tezos or Decred, financial protocols such as Compound, DeversiFi or Maker.
Collectives are closer to traditional organizations: They have a smaller number of active members and a wider range of activities than protocol DAOs. 1Hive, dOrg, or MetaGame are examples of collectives that use DAOs to be more transparent, more open, more flexible and fairer towards their members than usual corporations.”
He further indicates that “there is no such thing as a pure “Decentralized Autonomous Organization”. DAOs are imperfectly decentralized, very moderately autonomous, and hardly comparable to organizations in the traditional sense”.
DAOs are less a thing than a gradual, dynamic process. — Philippe Honigman

Here are two videos you should watch to provide yourself with a better understanding of the term. In these videos, Aragon and DAOstack both try to explain what a DAO is and how they operate. Notice that there is a difference in their tone and explanation of the overall concept of DAOs. Aragon explains it to be a ‘fight for freedom’ in decentralizing what can be and should be decentralized whilst DAOstack describes it to be more of a ‘collaborative experience’.
https://www.youtube.com/watch?v=AqjIWmiAidw
https://www.youtube.com/watch?v=25wtmzBG1Yg

If you are still unsure about DAOs, it is recommended that you read the following articles which comprehensively covers the concept and definition of DAOs.

What can we do with a DAO in 2020?

What is a DAO? An attempt to clarify a complex idea

Bootstrapping A Decentralized Autonomous Corporation: Part I

DAC Revisited

How the term DAO applies to Coin Breeder

Coin Breeder DAO (CBDAO) can be seen as a hybrid of the protocol-type and the collective-type of DAOs, whereby it functions just like a traditional organization with the ability to make collective decisions regarding the critical parameters of the crypto-network ($BREE token) with an open-source protocol (the $BREE token smart contract).
As Philippe explains above, “there is no such thing as a pure “Decentralized Autonomous Organization”. This statement can be similarly applied to CBDAO in the sense that complete ‘decentralization’ and ‘autonomy’ can’t be met due to the nature of the $BREE tokenonomics — e.g. determining farming rates for each governance asset (an off-chain oracle and manual review is required). However, attempts to reach pure ‘decentralization’ and ‘autonomy’ are in the scopes of our roadmap and it should be noted that it is indeed one of our core priorities (roadmap can be viewed here).

CBDAO’s Role in Researching DAOs

CBDAO will serve as the ultimate sandbox for DAO and blockchain researchers, developers and users to proof-test and experiment various consensus protocols on DAOs. Our main focus will be in experimenting consensus protocols and voting mechanisms to solve existing challenges and vulnerabilities in regards to governing DAOs (some of the issues have been outlined here). CBDAO will be publishing quarterly reports on these experiments, highlighting what we have learned and how things could be improved. Our ultimate goal and mission is to provide a wide range of fundamental reference points for future researchers and developers to save their time and risk less on experimenting and proof-testing various consensus protocols on a DAO. CBDAO will evolve with the community as we collectively experiment, learn and grow together.

Original Article Can Be Found On: https://medium.com/@coinbreedethe-state-of-daos-1aecba88d9ed
submitted by ResidentSignal35 to defi [link] [comments]

A Glance at the Heart: Proof-of-Authority Technology in the UMI Network

A Glance at the Heart: Proof-of-Authority Technology in the UMI Network

https://preview.redd.it/vhvj6v093df51.jpg?width=1024&format=pjpg&auto=webp&s=00c0c223d9758edec8ed49a8cb9024f96d3ee343
Greetings from the UMI Team! Our Whitepaper describes in detail the key pros and cons of the two mechanisms which the great majority of other cryptocurrencies are based on:
Proof-of-Work (PoW) — mining technology. Used in Bitcoin, Ethereum, Litecoin, Monero, etc.
Proof-of-Stake (PoS) and its derivatives — forging technology. Used in Nxt, PeerCoin, NEO, PRIZM, etc.
As a result of a careful analysis of PoW and PoS, which are designed to fight against centralization, there came a conclusion that they both fail to perform their main mission and, in the long run, they lead to the network centralization and poor performance. For this reason, we took a different approach. We use Proof-of-Authority (PoA) algorithm coupled with master nodes, which can ensure the UMI network with decentralization and maximum speed.
The Whitepaper allows you to understand the obvious things. This article will give you a clear and detailed explanation of the technology implemented in the UMI network. Let's glance at the heart of the network right now.
Proof-of-Authority: How and Why It Emerged
It's been over a decade since the first transaction in the Bitcoin network. Over this time, the blockchain technology has undergone some qualitative changes. It's down to the fact that the cryptocurrency world seeing the emerging Proof-of-Work defects in the Bitcoin network year after year has actively searched for ways to eliminate them.
PoW decentralization and reliability has an underside of low capacity and scalability problem that prevents the network from rectifying this shortcoming. Moreover, with the growing popularity of Bitcoin, greed of miners who benefit from high fees resulting from the low network throughput has become a serious problem. Miners have also started to create pools making the network more and more centralized. The “human factor” that purposefully slowed down the network and undermined its security could never be eliminated. All this essentially limits the potential for using PoW-based cryptocurrencies on a bigger scale.
Since PoW upgrade ideas came to nothing, crypto community activists have suggested cardinally new solutions and started to develop other protocols. This is how the Proof-of-Stake technology emerged. However, it proved to be excellent in theory rather than in practice. Overall, PoS-based cryptocurrencies do demonstrate a higher capacity, but the difference is not as striking. Moreover, PoS could not fully solve the scalability issue.
In the hope that it could cope with the disaster plaguing all cryptocurrencies, the community came up with brand new algorithms based on alternative operating principles. One of them is the Proof-of-Authority technology. It was meant to be an effective alternative with a high capacity and a solution to the scalability problem. The idea of using PoA in cryptocurrencies was offered by Gavin Wood — a high-profile blockchain programmer and Ethereum co-founder.
Proof-of-Authority Major Features
PoA's major difference from PoW and PoS lies in the elimination of miner or forger races. Network users do not fight for the right to be the first to create a block and receive an award, as it happens with cryptocurrencies based on other technologies. In this case blockchain's operating principle is substantially different — Proof-of-Authority uses the “reputation system” and only allows trusted nodes to create blocks.
It solves the scalability problem allowing to considerably increase capacity and handle transactions almost instantly without wasting time on unnecessary calculations made by miners and forgers. Moreover, trusted nodes must meet the strict capacity requirements. This is one the main reasons why we have selected PoA since this is the only technology allowing to fully use super-fast nodes.
Due to these features, the Proof-of-Authority algorithm is seen as one of the most effective and promising options for bringing blockchain to various business sectors. For instance, its model perfectly fits the logistics and supply chain management sectors. As an outstanding example, PoA is effectively used by the Microsoft Azure cloud platform to offer various tools for bringing blockchain solutions to businesses.
How the UMI Network Gets Rid of the Defects and Incorporates the Benefits of Proof-of-Authority Method
Any system has both drawbacks and advantages — so does PoA. According to the original PoA model, each trusted node can create a block, while it is technically impossible for ordinary users to interfere with the system operation. This makes PoA-based cryptocurrencies a lot more centralized than those based on PoW or PoS. This has always been the main reason for criticizing the PoA technology.
We understood that only a completely decentralized product could translate our vision of a "hard-to-hit", secure and transparent monetary instrument into reality. Therefore, we started with upgrading its basic operating principle in order to create a product that will incorporate all the best features while eliminating the defects. What we’ve got is a decentralized PoA method. We will try to explain at the elementary level:
- We've divided the nodes in the UMI network into two types: master nodes and validator nodes.
- Only master nodes have the right to create blocks and confirm transactions. Among master node holders there's the UMI team and their trusted partners from across the world. Moreover, we deliberately keep some of our partners — those who hold master nodes — in secret in order to secure ourselves against potential negative influence, manipulation, and threats from third parties. This way we ensure maximum coherent and reliable system operation.
- However, since the core idea behind a decentralized cryptocurrency rules out any kind of trust, the blockchain is secured to prevent master nodes from harming the network in the event of sabotage or collusion. It might happen to Bitcoin or other PoW- or PoS-based cryptocurrencies if, for example, several large mining pools unite and perform a 51% attack. But it can’t happen to UMI. First, the worst that bad faith master node holders can do is to negligibly slow down the network. But the UMI network will automatically respond to it by banning such nodes. Thus, master nodes will prevent any partner from doing intentional harm to the network. Moreover, it will not be able to do this, even if most other partners support it. Nothing — not even quantum computers — will help hackers. Read our post "UMI Blockchain Six-Level Security" for more details.
- A validator node can be launched by any participant. Validator nodes maintain the network by verifying the correctness of blocks and excluding the possibility of fakes. In doing so they increase the overall network security and help master nodes carry out their functions. More importantly, those who hold validator nodes control those who hold master nodes and confirm that the latter don't violate anything and comply with the rules. You can find more details about validator nodes in the article we mentioned above.
- Finally, the network allows all interested users to launch light nodes (SPV), which enables viewing and sending transactions without having to download the blockchain and maintain the network. With light nodes, any network user can make sure if the system is operating properly and doesn't have to download the blockchain to do this.
- In addition, we are developing the ability to protect the network in case 100% of the master nodes (10,000 master nodes in total) are "disabled" for some reason. Even this is virtually impossible, we've thought ahead and in the worst-case scenario, the system will automatically move to PoS. By doing so, it will be able to continue processing transactions. We're going to tell you about this in our next publications.
Thus, the UMI network uses an upgraded version of this technology which possesses all its advantages with drawbacks eliminated. This model is truly decentralized and maximum secured.
Another major drawback of PoA-based cryptos is no possibility to grant incentives to users. PoA doesn't imply forging or mining which allow users to earn cryptocurrency while generating new coins. No reward for maintaining the network is the main reason why the crypto community is not interested in PoA. This is, of course, unfair. With this in mind, the UMI team has found the best solution — the unique staking smart-contract. It allows you to increase the number of your coins up to 40% per month even with no mining or forging meaning the human factor cannot have a negative impact on the decentralization and network performance.
New-Generation Proof-of-Authority
The UMI network uses an upgraded version of PoA technology which possesses all its advantages with drawbacks virtually eliminated. This makes UMI a decentralized, easily scalable, and yet the most secure, productive, profitable and fair cryptocurrency, working for the sake of all people.
The widespread use of UMI can change most aspects of society in different areas, including production, commerce, logistics, and all financial arrangements. We are just beginning this journey and thrilled to have you with us. Let's change the world together!
Best regards, UMI Team!
submitted by UMITop to u/UMITop [link] [comments]

Celo technical review

Introduction Celo Technical Review: What Celo Wants to Achieve? Celo’s main motive is to make their crypto currency as a platform of payments. These are some of the problems faced in the crypto industry now: - Existing crypto currencies like Bitcoin are not used as payment platforms as they are considered store of value due to their deflationary nature. - Crypto in itself is very difficult with bad UIs and very difficult for the users to manage their keys and they require the public key of the user whom they want to send payment. - There is no concrete governance structure in crypto currencies. Celo wants to eliminate the above problems by following methods: - They are proposing to introduce a stable coin with elastic supply backed by variable reserves - They are using Address Based encryption to make ease of use of payments - They are introducing Governance structure at different levels. What is Address Based Encryption? Address Based Encryption is a novel approach of enabling the user to use their phone number or email address as a secure way of messaging. Users generate traditional ways of public / private key and encrypt their public key with their phone number, so they can use their phone number to send / receive Celo money. This encrypted value will be stored in a database and committed by the validator. This is what Celo is mainly pitching to reduce the dependency on people to use their public keys while transferring payment to reduce user onboarding. All one has to do is a one-time setup and then you can use your phone number as an address for sending payments! As simple as that! This is what Celo is hoping to achieve. Although this model does bring its own set up of problems, Celo addressed these issues and how they plan to resolve these in their white paper. We have some queries on these approaches which we will address at the end of this review. What is Elastic Coin Supply? Celo has two assets, Celo Gold and Celo Dollar. - Celo Dollar which will be the stablecoin. Celo Dollar will be elastic in nature as it will be freshly minted if the price goes above the peg. - Celo Gold is the utility token of the blockchain. Celo Gold will be used for governance, staking and as an incentive for developers which will be put in reserve. Celo Governance Since Celo uses Proof of Stake, Celo Gold will be used for staking and also for any governance decision making. This will be done by sending the Celo Gold tokens to a smart contract with a withdrawal notice set for a duration. White Paper Summary Overall, a good paper presented well. The value of Celo Gold will depend upon the usability of the Celo platform. Perhaps, something to learn from ETH where the value of ETH has risen because one can build various tokens on the ETH network. Questions for Celo Team (White Paper) - For the Address based encryption, it is mentioned that validators will be used to attest the signatures. * Our Question(s): How many validators will be used and what's the slashable criteria for the validators? - For mitigating the DDOS, a cost to attestation is required, which basically means users sending out a fee for attestation. * Our Question(s): Wouldn't this hamper a new user, as he has to pay a fee just for registering his key? Also, what is the time overhead required for the validators to verify and attest the message? - Regarding the Elastic Coin Supply, it is mentioned that when the Celo Dollar price is above peg, new coins will be minted and instead of distributing them to the user, they will be used to buy various other crypto-assets and sell them when required. * Our Question(s): What are the assets that will be bought is not cleamentioned and weI really think this is not a good method as we know the value of crypto assets might decay over a period of time. Any thoughts on that? Also, who will cover for that if net value ends up as loss? - Also, to be elected validator, it was mentioned that the users can form groups and pitch themselves to be validators. * Our Question(s): Wouldn't this make the protocol more centralized, something akin to a DPOS system? Other Question(s): - What are the criteria of slashing funds of a validator? - What about storage problems, since they are forking ETH, wouldn't they inherit the same problems ETH has with respect to speed and storage overhead? - To make any technical improvements, anybody can make a bonded deposit and validators can vote on that. But wouldn't this pave way to the incorrect technical improvements to be made and also will the deposit be slashed if there is incorrect spec on the improvement submitted by the developer? - What will be the function of a smart contract platform in addition to the bonded deposits and attestation of messages?
Celo Code Review Celo Repositories and Blockchain: Celo has 69 repositories. Initial observations are that Celo blockchain is a fork / copy of GETH with some modifications. Key Modifications: - Addition of BLS signatures - Addition of Istanbul-BFT consensus in place of POW - Introduction of Celo Gold Tokens BLS Signatures: A simple explanation is that BLS Signatures offer a better way of aggregating signatures and reducing the storage in blocks. However, verification of these signatures still takes time. IBFT Consensus - Istanbul BFT consensus: A simple explanation of IBFT Consensus is that it is modified PBFT which is most suitable for permissioned networks. This consensus works well with a smaller set of validators and is fast and also offers safety for up to 2/3 of the dishonest nodes. Celo Gold Tokens: Celo Gold Tokens is a native token of Celo Blockchain, just like ETH for ethereum blockchain. Having reviewed all the repositories, we feel that there are a lot of other repos which have most of the code they have mentioned in the white paper, like Governance, Slashing, Stable Coin etc. Overall, all the other reports are well maintained. We don’t see any major red flags in their repositories. Questions for Celo Team (Code): - Our only observation is that we are still unable to understand why they would be needing a separate blockchain to carry out all aforementioned functions. Can't they use PoA network, which is similar to their blockchain, and they can still add the aforementioned functions or better be as a sidechain to ETH?
- What's the reason for forking ETH? - What’s the Unique Selling point for Celo in the midst of several stable currencies, are we relying only on the one point of ease of access? Should I invest in Celo or not? The Matrix's Red Pill or Blue Pill or Celos’ Green Pill — Which Is Better? Discuss, ask questions here and we will learn. source:https://t.me/DotCrypto
submitted by thesecopy to CryptoMoonShots [link] [comments]

An Article on The State of Decentralized Autonomous Organizations (DAOs)

Since 2016 and the fall of the DAO project, spotlights on DAOs have silently faded until 2019, when it started to gain traction again. During this period of what we call the ‘winter of DAOs’, there was and there still is a general sense of trauma revolving around DAOs and the idea of decentralizing organizations with the help of smart contracts.
In the ‘Beginners Guide to CBDAO’ article, we have explained the term DAO, in layman’s terms, to be an organization which is governed and managed by all members as opposed to having a select few entity or individual(s) governing and making executive decisions indefinitely.
However, this definition does not do justice to the overall concept of DAOs. There exists some room for debate as to what exactly a DAO is and how it operates. Philippe Honigman from DAObase states that each of the words in the term DAO, “can be interpreted in many ways, spawning different definitions of DAOs with emphasis on one aspect or another”.
For instance, the word ‘decentralized’ in the term ‘DAO’ may contain varying meanings as the word does not fully indicate or consider the level of decentralization used on its consensus protocol (these levels are described in the Beginners Guide to CBDAO article). Honigman (DAObase) describes the word ‘decentralized’ to have two varying meanings when it comes to DAOs and these are:
As such, it is not right to assume all DAO projects to be completelydecentralized’ and ‘autonomous’.
So what exactly is a DAO and how can we better describe the term?
To be able to better understand the term, we will have to briefly learn about the history of DAOs and how they emerged. The concept of DAOs were first introduced by Dan Larimer back in 2013 as he was describing Bitcoin to be a ‘Decentralized Autonomous Corporation’, whereby its shareholders would be the holders and its employees would be the miners.
For something to be considered a ‘DAC’, it must have the following measurements met:
DAOs work in the similar sense that:
Now that DACs were a ‘thing’, the blockchain community moved on to discuss about how these DACs could be governed better. Here’s where Vitalik Buterin (Founder of Ethereum) first introduced the idea of a resource-democracy voting mechanism, while he was still working as a writer on the Bitcoin Magazine.
“We can use some kind of resource-democracy mechanism to vote on the correct value of some fact, and ensure that people are incentivized to provide accurate estimates by depriving everyone whose report does not match the “mainstream view” of the monetary reward.” — Vitalik Buterin
As such, an incentivized governance protocol was first introduced for DACs. Ever since, many different types of consensus protocols have emerged and DACs have evolved to become DAOs.
Philippe from DAObase explains that as of today, there are two dominant types of DAOs — protocols and collectives.
“Protocol DAOs enable interested parties to make collective decisions regarding the critical parameters of a crypto-network based on an open-source protocol: blockchain protocols such as Tezos or Decred, financial protocols such as Compound, DeversiFi or Maker.
Collectives are closer to traditional organizations: They have a smaller number of active members and a wider range of activities than protocol DAOs. 1Hive, dOrg, or MetaGame are examples of collectives that use DAOs to be more transparent, more open, more flexible and fairer towards their members than usual corporations.”
He further indicates that “there is no such thing as a pure “Decentralized Autonomous Organization”. DAOs are imperfectly decentralized, very moderately autonomous, and hardly comparable to organizations in the traditional sense”.
DAOs are less a thing than a gradual, dynamic process. — Philippe Honigman
Here are two videos you should watch to provide yourself with a better understanding of the term. In these videos, Aragon and DAOstack both try to explain what a DAO is and how they operate. Notice that there is a difference in their tone and explanation of the overall concept of DAOs. Aragon explains it to be a ‘fight for freedom’ in decentralizing what can be and should be decentralized whilst DAOstack describes it to be more of a ‘collaborative experience’.
https://www.youtube.com/watch?v=AqjIWmiAidw
https://www.youtube.com/watch?v=25wtmzBG1Yg

If you are still unsure about DAOs, it is recommended that you read the following articles which comprehensively covers the concept and definition of DAOs.
What can we do with a DAO in 2020?
What is a DAO? An attempt to clarify a complex idea
Bootstrapping A Decentralized Autonomous Corporation: Part I
DAC Revisited

How the term DAO applies to Coin Breeder
Coin Breeder DAO (CBDAO) can be seen as a hybrid of the protocol-type and the collective-type of DAOs, whereby it functions just like a traditional organization with the ability to make collective decisions regarding the critical parameters of the crypto-network ($BREE token) with an open-source protocol (the $BREE token smart contract).
As Philippe explains above, “there is no such thing as a pure “Decentralized Autonomous Organization”. This statement can be similarly applied to CBDAO in the sense that complete ‘decentralization’ and ‘autonomy’ can’t be met due to the nature of the $BREE tokenonomics — e.g. determining farming rates for each governance asset (an off-chain oracle and manual review is required). However, attempts to reach pure ‘decentralization’ and ‘autonomy’ are in the scopes of our roadmap and it should be noted that it is indeed one of our core priorities (roadmap can be viewed here).

CBDAO’s Role in Researching DAOs
CBDAO will serve as the ultimate sandbox for DAO and blockchain researchers, developers and users to proof-test and experiment various consensus protocols on DAOs. Our main focus will be in experimenting consensus protocols and voting mechanisms to solve existing challenges and vulnerabilities in regards to governing DAOs (some of the issues have been outlined here). CBDAO will be publishing quarterly reports on these experiments, highlighting what we have learned and how things could be improved. Our ultimate goal and mission is to provide a wide range of fundamental reference points for future researchers and developers to save their time and risk less on experimenting and proof-testing various consensus protocols on a DAO. CBDAO will evolve with the community as we collectively experiment, learn and grow together.
Original Article Can Be Found On: https://medium.com/@coinbreedethe-state-of-daos-1aecba88d9ed
submitted by ResidentSignal35 to BlockchainStartups [link] [comments]

How to convert BTC to wBTC

I have some BTC, and I'd like to put them with a custodian to get new wBTC minted. Is this something possible? I understand that one is on bitcoin chain, the other on Ether, the wbtc.network has several links to partner, but they all offer to buy wBTC directly and not to mint them from existing BTC. I tried to read through the following links, but cannot find what I'm looking for, all seem to refer to simply buying wBTC, and not minting from actual BTC I already own.

Any help / explanation would be appreciated! :)
https://ethereum.stackexchange.com/questions/76833/how-to-swap-btc-to-wbtc
https://wbtc.network/
https://medium.com/fitzner-blockchain-consulting/an-overview-of-wrapped-bitcoin-wbtc-5b5f97e090e0
https://defirate.com/wbtc/
submitted by LoloCrypto to ethereumnoobies [link] [comments]

tBTC an erc20 wrapped version of BTC, like erc20 wBTC; but is trustless and does not require a centralised party to mint wrapped btc like wBTC

I found this article on /Ethereum though it didnt go into the specs of how this works:
https://np.reddit.com/ethereum/comments/ftqdna/bitcoin_to_ethereum_bridge_raises_77_million_in/
https://decrypt.co/24336/bitcoin-to-ethereum-bridge-raises-7-7-million-in-token-sale?utm_source=reddit&utm_medium=social&utm_campaign=sm
as the article says wrapped bitcoin has been done before e.g. wBTC but wBTC requires a centralised party to mint wBTC from BTC held by this party; making it out of the question as its centralised.
did some digging there is a whitepaper , but i wanted more details on the tBTC implementation.
I went on their github and looked at the readme on some projects; found a few interesting things, though not an entire explanation.
https://github.com/keep-network/tbtc
tBTC is a trustlessly Bitcoin-backed ERC-20 token.
The goal of the project is to provide a stronger 2-way peg than federated sidechains like Liquid, expanding use cases possible via today’s Bitcoin network, while bringing superior money to other chains.
This repo contains the Solidity smart contracts and specification.
https://github.com/keep-network/tbtc
tbtc.js provides JS bindings to the tBTC system. The tBTC system is a bonded, multi-federated peg made up of many deposits backed by single-use BTC wallets to enable their value’s corresponding usage on the Ethereum chain, primarily through the minting of a TBTC ERC20 token whose supply is guaranteed to be backed by at least 1 BTC per TBTC in circulation.
finally this is the best:
https://tbtc.network/developers/tbtc-technical-system-overview
here is the first few pargarphs
2020-04-01 tBTC incorporates novel design features that carry important implications for users. This piece explains four of these: TDT receipts, multiple lot sizes, Keep's random beacon, and threshold signatures.
TBTC Deposit Token (TDT) The TBTC Deposit Token (TDT) is a non-fungible token that is minted when a user requests a deposit. A TDT is a non-fungible ERC-721 token that serves as a counterpart to TBTC. It represents a claim to a deposit's underlying UTXO on the Bitcoin blockchain.
TBTC deposits can be locked or unlocked. A locked deposit can only be redeemed by the deposit owner with the corresponding TDT. Each TDT is unique to the deposit that mints it and carries the exclusive right for up to a 6 month term to redeem the deposit.
also this paragraph addresses creating wallets with the created tokens
Random Beacon for Signer Selection
The Keep network requires a trusted source of randomness to select tBTC signers. This takes the form of a BLS Threshold Relay.
When a request comes in to create a signing group, the tBTC system uses a random seed from a secure decentralized random beacon to randomly select signing group members from the eligible pool of signers. These signers coordinate a distributed key generation protocol that results in a public ECDSA key for the group, which is used to produce a wallet address that is then published to the host chain. This completes the signer selection phase.
my take away from this is that by using side chains that a trustless, not fedeared like liquid bitcoin sidechains sold by blockstream. it uses NFT erc-721 tokens as representation of the bitccoin UTXO from the bitcoin blockchain, store it in a wallet and mint it into tBTC. given this is all smart contracts generating wallets and minting the tBTC, it does away with the need of a centralised party to provide the funds of BTC to create a wrapped erc20 version on ethereum and so should be trustles.
perhaps erc20 token trading is the way to go forward. just requires wrapping of exisitng tokens. this looks promising for DeXs and DeFi if it happens.
also opens the possibiliy of multicollateral Dai (MCD) using tBTC in addition to eth and BAT. though personally i think btc should not be used in MCD.
any thoughts on this? or if my understanding is off.
thanks
edit: got some more info from px403
I talked to James a bit about tBTC in Osaka, so I have a vague idea of how it works, so I might be able to explain it in a somewhat coherent way.
Basically, the magic here is they reimplemented Bitcoin's SPV as an Ethereum smart contract, effectively letting them query the current state of the Bitcoin network, including validity of payments, directly in contract. Using this, they built an auction system where people can at any time claim ETH by paying BTC, or claim BTC by paying ETH. By design the spread is wide, so this isn't actually intended to be a high volume exchange, but what you do get is a pretty good price oracle.
From the price oracle, I think there were doing some Maker style CDPs or something, where people could lock up their BTC on the Bitcoin network to redeem tBTC, and any of the locked BTC could be reclaimed by burning tBTC or something.
Sorry it's not a complete picture of what's going on, but I think that's the general gist of what they're doing.
submitted by Neophyte- to CryptoTechnology [link] [comments]

Explain Different Types of Blockchain: which one Is Best For Business?

Explain Different Types of Blockchain: which one Is Best For Business?
https://preview.redd.it/ib4wqcwxxl551.jpg?width=2400&format=pjpg&auto=webp&s=b6f60a3ec9f95c3f35287373f93071340aef3914
The rise of Blockchain technology has created a significant impact on across the different segments. At the same, it is important to know how this technology will be transforming the future. When we talk about Blockchain technology, then there are myriads of developments taking around it.
The Blockchain platform is an open-source DLT where every information is time-stamped and encrypted cryptographically. However, one of the major drawbacks of the traditional Blockchain platform like Ethereum is public, and anyone can easily access the system. If we want Blockchain technology to become a part of mainstream business, then we need a higher security level with no scope of tampering and data alteration.
Blockchain is technology at a nascent stage, which is still developing, and there are various transformations taking place in this field.
Different Types of Blockchain Platform:
The popular Blockchain platforms available are:
Public Blockchain like Bitcoin, Litecoin
Private Blockchains like Corda and Hyperledger Fabric
Consortium Blockchain
Hybrid Blockchain like Dragonchain
Explanation :
Public Blockchain- This is the most conventional form of Blockchain, which is open to all. Bitcoin, Ethereum are examples of the same. It is a permission-less Blockchain. Anyone who has access to the internet can become a part of this system. Each participant is known as a node. These are authorized centers or individuals or nodes which have access to the system. They can do transactions, do mining, and also do proof-of-work for any new addition of blocks.
Private Blockchain- The public Blockchain is permission-less, and hence anyone can access this system. But with Private Blockchain, this problem can be easily overcome. One of the examples of this is Corda. This is a permissioned Blockchain developed for enterprise use. Only a limited number of people can gain access to this system. The authorizations, permissions, accessibility is controlled, thus ensuring complete safety of the system. This kind of Blockchain is useful for supply chain, voting, transactions, asset ownership, and digital identity.
Consortium Blockchain- As evident from the name, this type of Blockchain is accessed by control or group of organizations, which is unlike private Blockchain. It is a semi-decentralized Blockchain. More than one organization can participate in this and do mining. This type of Blockchain is useful for government and banking organizations.
Hybrid Blockchain- This Blockchain is a mix of both private and public Blockchain. So the user enjoys the benefits of both types of a Blockchain platform. Access to this network is controlled. Only a selected section of data or information is accessible to the public. It is a flexible Blockchain system wherein the user can use private Blockchain along with another Blockchain system. Dragonchain is an example of the same.
While the last two types of Blockchain are fairly new, private, and, public Blockchain is comparatively more popular, and companies are using the same for their business operations.
Conclusion- The set of advantages and disadvantages vary from one Blockchain to another. Coming to our question, which Blockchain is best for the business, then based on the business requirement, you can choose the desired platform.
If you wish to know more about Blockchain, you must connect with Blockchain Council.
submitted by Blockchain_org to BlockchainStartups [link] [comments]

Proof of Authority

Proof of Authority
https://preview.redd.it/hiu3umys1j451.png?width=560&format=png&auto=webp&s=a918610c070d00bce65edc4dea52ca2d22b3aabe
The Blockchain industry is continuously progressing since its inception. The consensus mechanism is the core of a decentralized ecosystem that helps it to achieve consensus in the network. Till now, many consensus methods have been invented and implemented to achieve consensus within a blockchain system. I am writing a series of articles on different consensus mechanisms with a detailed explanation of their advantages and disadvantages over each other. I have already covered PoW and PoS, so here in this article, I will focus on PoA.
The PoW consensus algorithm used by Bitcoin is considered a reliable and secure consensus mechanism but it doesn’t support scalability. As a result, it restricts the performance of the Bitcoin network along with its transaction speed. The major disadvantage of this method is that it requires high energy consumption and system resources which are needed to solve the complex mathematical puzzles.
With some more features, Proof of Stake came into existence which offers better performance than PoW. There are several PoS projects which are still under development so what new features it can offer and how much it can deal with the drawback of the existing consensus mechanism is depends on the success rate of future projects.
Then there is another consensus mechanism called Proof of Authority which is the enhanced version of PoS. It supports better performance by allowing more transactions per second. Now let’s discuss it in detail.
What is Proof of Authority?
The Proof-Of-Authority (PoA) is a consensus method where a group of validators is already chosen as the authority. Their task is to check and validate all the newly added identities, validate transactions, and blocks to add to the network. To ensure efficiency and security in the network the validator group is usually kept small (~25 or less).
Proof of Authority (PoA) is an enhanced version of Proof of Stake (PoS) where the validator’s identity is used as a stake in the network.
A node needs to complete a mandatory process to authenticate itself to receive the right to generate new blocks. Validators need to register themselves in the public notary database using government-issued documents with the same identity that they have on the platform. Thus, Blocks and transactions are verified by participants, whose identity is already verified and acts as an authority of the system.
With the power under a limited number of users, PoA consensus can be adopted as a solution for private networks rather than public blockchains.
PoA was proposed by a group of developers in March 2017 (coined by Gavin Wood) as a blockchain-based on the Ethereum protocol. It was developed with the idea to solve the problem of spam attacks on Ethereum’s Ropsten test network. The new network was named Kovan, the main test network that all Ethereum users use today.
Pre-Requisites for Proof of Authority Consensus
The PoA consensus algorithm is usually based upon the following criteria:
· Validators need to disclose and confirm their identities by giving government-issued documents.
· The standard procedure for verifying the identity of validators.
· Complex and robust criteria to define a validator so that they can put his reputation at stake and commit to a long-term alliance.
Advantages of PoA consensus
As compared to other consensus methods, PoA offers the following advantages:
· High transaction rate.
· High-performance hardware is not required.
· PoA networks are very scalable as compare to PoW blockchains
· Less power extensive.
· Low transaction fees.
· Sequentially block generation with fixed time interval by authorized network nodes. This increases transaction validity speed.
· No communication is required to reach the consensus between the nodes.
· Network operation is independent of the number of available genuine nodes.
· The chance of a node to become a forge depends upon both its stake and overall holding.
Drawback
· Proof-of-Authority based networks lack in decentralization.
· PoA validator's identities are visible in the network.
· PoA does not guarantee censorship resistance.
Practical Implementation
PoA consensus algorithm can be applied in various fields and industries to achieve high throughput ranging from supply chains to banking sectors. PoA is considered as an effective and reasonable solution along with cost-saving benefit.
Below is the list of projects which has adopted PoA :
· Ethereum’s test net Kovan built on the Parity's PoA Protocol
· PoA Network by the Proof of Authority, LLC. (an Ethereum sidechain)
· The VeChainThor platform.
Conclusion
Every consensus method, be it PoW, PoS or PoA has its own set of advantages and disadvantages. But if we talk about PoA particularly, it somehow compromises in the decentralization area to achieve scalability and throughput.
Proof-Of-Authority can, therefore, be treated as a better option for a centralized solution because of its efficiency and less power consumption property.
Read More: Mastering Basic Attention Token (BAT)
Follow me on Twitter
submitted by RumaDas to u/RumaDas [link] [comments]

Blockchain for business 2020 the new industrial revolution free download - freetutorialseu.com

Blockchain Technology Will Transform How Businesses Operate. Do You Want to Be a Part of the Blockchain Journey?

BLOCKCHAIN FOR BUSINESS
Created by 365 Careers Last updated 1/2019 English English [Auto-generated] What you’ll learn
Description
You have heard the term “blockchain”, right? But you are still not very clear what it is exactly. Or perhaps, you know something about it, but don’t understand how it works, where its value comes from, and how is it developing currently.
It is the technology powering crypto-assets like Bitcoin, Ethereum and many others. And it has become the hottest field in the tech sector now.
Blockchain has the potential to change the world and few people realize all its far-reaching applications beyond Bitcoin.
Its disruptive potential has been compared to that of the Internet. That’s why people call it “the Internet of money” or “the Internet of value”.
Now, compare this course to having a roadmap to the Internet in the early 1990s. A comprehensive guide that enables you to fully understand the new space and empowers you to make correct fully-informed decisions. You will be able to see new business opportunities before others do. You will be able to distinguish good ideas and projects from bad ones. You will learn how blockchain works and how it can be applied in various sectors. Moreover, you will get a new perspective on decentralized economic systems, which are expected to play a huge role in the future. This is the “sharing economy” 2.0 – powered by crypto-economics and blockchain.
This is what “Blockchain for Business: The New Industrial Revolution” will teach you!
Our mission is to provide the most comprehensive educational material on the subject, which delivers the best value for money to our audience.
After last year’s unprecedented growth of the crypto-asset market, fuelled by speculation and emotions, it is high time to increase awareness and understanding of blockchain technology among the general public.
We believe that understanding should come first, before anyone starts making any decisions with real-world implications. That’s why we created this course and tried to design it in the most clear, accessible and fun way. This is by no means a highly technical course and our focus here is not programming. We are not going to show you how to write code. But we are going to explain everything else, which is relevant and important to know about blockchain.
Our materials are designed to explain the fundamentals of blockchain technology, crypto-economics and their applications in business and everyday life to people without a technical background.
We hope you are as passionate about constantly upgrading your knowledge base, as we are. Because knowledge is power!
So, let’s begin! Take this course today and become part of the new industrial revolution that is already shaping the future!
P.S. We believe this is an excellent educational product. But if you are not completely happy with the value you have received at the end, don’t worry – we offer a full 30-day unconditional refund. Sounds amazing, right? So, why wait? Your bet is hedged, and you have unlimited upside! Let’s start our blockchain journey together!
Who this course is for:
What you’ll learn
Description
You have heard the term “blockchain”, right? But you are still not very clear what it is exactly. Or perhaps, you know something about it, but don’t understand how it works, where its value comes from, and how is it developing currently.
It is the technology powering crypto-assets like Bitcoin, Ethereum and many others. And it has become the hottest field in the tech sector now.
Blockchain has the potential to change the world and few people realize all its far-reaching applications beyond Bitcoin.
Its disruptive potential has been compared to that of the Internet. That’s why people call it “the Internet of money” or “the Internet of value”.
Now, compare this course to having a roadmap to the Internet in the early 1990s. A comprehensive guide that enables you to fully understand the new space and empowers you to make correct fully-informed decisions. You will be able to see new business opportunities before others do. You will be able to distinguish good ideas and projects from bad ones. You will learn how blockchain works and how it can be applied in various sectors. Moreover, you will get a new perspective on decentralized economic systems, which are expected to play a huge role in the future. This is the “sharing economy” 2.0 – powered by crypto-economics and blockchain.
This is what “Blockchain for Business: The New Industrial Revolution” will teach you!
Our mission is to provide the most comprehensive educational material on the subject, which delivers the best value for money to our audience.
After last year’s unprecedented growth of the crypto-asset market, fuelled by speculation and emotions, it is high time to increase awareness and understanding of blockchain technology among the general public.
We believe that understanding should come first, before anyone starts making any decisions with real-world implications. That’s why we created this course and tried to design it in the most clear, accessible and fun way. This is by no means a highly technical course and our focus here is not programming. We are not going to show you how to write code. But we are going to explain everything else, which is relevant and important to know about blockchain.
Our materials are designed to explain the fundamentals of blockchain technology, crypto-economics and their applications in business and everyday life to people without a technical background.
We hope you are as passionate about constantly upgrading your knowledge base, as we are. Because knowledge is power!
So, let’s begin! Take this course today and become part of the new industrial revolution that is already shaping the future!
P.S. We believe this is an excellent educational product. But if you are not completely happy with the value you have received at the end, don’t worry – we offer a full 30-day unconditional refund. Sounds amazing, right? So, why wait? Your bet is hedged, and you have unlimited upside! Let’s start our blockchain journey together!
Who this course is for:
Download link: https://www.freetutorialseu.com/blockchain-for-business-2020-the-new-industrial-revolution-free-download/
submitted by free_tutorials to u/free_tutorials [link] [comments]

For devs and advanced users that are still in the dark: Read this to get redpilled about why Bitcoin (SV) is the real Bitcoin

This post by cryptorebel is a great intro for newbies. Here is a continuation for a technical audience. I'll be making edits for readability and maybe even add more content.
The short explanation of why BSV is the real Bitcoin is that it implements the original L1 scripting language, and removes hacks like p2sh. It also removes the block size limit, and yes that leads to a small number of huge nodes. It might not be the system you wanted. Nodes are miners.
The key thing to understand about the UTXO architecture is that it is maximally "sharded" by default. Logically dependent transactions may require linear span to construct, but they can be validated in sublinear span (actually polylogarithmic expected span). Constructing dependent transactions happens out-of-band in any case.
The fact that transactions in a block are merkelized is an obvious sign that Bitcoin was designed for big blocks. But merkle trees are only half the story. UTXOs are essentially hash-addressed stateful continuation snapshots which can also be "merged" (validated) in a tree.
I won't even bother talking about how broken Lightning Network is. Of all the L2 scaling solutions that could have been used with small block sizes, it's almost unbelievable how many bad choices they've made. We should be kind to them and assume it was deliberate sabotage rather than insulting their intelligence.
Segwit is also outside the scope of this post.
However I will briefly hate on p2sh. Imagine seeing a stunted L1 script language, and deciding that the best way to implement multisigs was a soft-fork patch in the form of p2sh. If the intent was truly backwards-compatability with old clients, then by that logic all segwit and p2sh addresses are supposed to only be protected by transient rules outside of the protocol. Explain that to your custody clients.
As far as Bitcoin Cash goes, I was in the camp of "there's still time to save BCH" until not too long ago. Unfortunately the galaxy brains behind BCH have doubled down on their mistakes. Again, it is kinder to assume deliberate sabotage. (As an aside, the fact that they didn't embrace the name "bcash" when it was used to attack them shows how unprepared they are when the real psyops start to hit. Or, again, that the saboteurs controlled the entire back-and-forth.)
The one useful thing that came out of BCH is some progress on L1 apps based on covenants, but the issue is that they are not taking care to ensure every change maintains the asymptotic validation complexity of bitcoin's UTXO.
Besides that, The BCH devs missed something big. So did I.
It's possible to load the entire transaction onto the stack without adding any new opcodes. Read this post for a quick intro on how transaction meta-evaluation leads to stateful smart contract capabilities. Note that it was written before I understood how it was possible in Bitcoin, but the concept is the same. I've switching to developing a language that abstracts this behavior and compiles to bitcoin's L1. (Please don't "told you so" at me if you just blindly trusted nChain but still can't explain how it's done.)
It is true that this does not allow exactly the same class of L1 applications as Ethereum. It only allows those than can be made parallel, those that can delegate synchronization to "userspace". It forces you to be scalable, to process bottlenecks out-of-band at a per-application level.
Now, some of the more diehard supporters might say that Satoshi knew this was possible and meant for it to be this way, but honestly I don't believe that. nChain says they discovered the technique 'several years ago'. OP_PUSH_TX would have been a very simple opcode to include, and it does not change any aspect of validation in any way. The entire transaction is already in the L1 evaluation context for the purpose of checksig, it truly changes nothing.
But here's the thing: it doesn't matter if this was a happy accident. What matters is that it works. It is far more important to keep the continuity of the original protocol spec than to keep making optimizations at the protocol level. In a concatenative language like bitcoin script, optimized clients can recognize "checksig trick phrases" regardless of their location in the script, and treat them like a simple opcode. Script size is not a constraint when you allow the protocol to scale as designed. Think of it as precompiles in EVM.
Now let's address Ethereum. V. Buterin recently wrote a great piece about the concept of credible neutrality. The only way for a blockchain system to achieve credible neutrality and long-term decentralization of power is to lock down the protocol rules. The thing that caused Ethereum to succeed was the yellow paper. Ethereum has outperformed every other smart contract platform because the EVM has clear semantics with many implementations, so people can invest time and resources into applications built on it. The EVM is apolitical, the EVM spec (fixed at any particular version) is truly decentralized. Team Ethereum can plausibly maintain credibility and neutrality as long as they make progress towards the "Serenity" vision they outlined years ago. Unfortunately they have already placed themselves in a precarious position by picking and choosing which catastrophes they intervene on at the protocol level.
But those are social and political issues. The major technical issue facing the EVM is that it is inherently sequential. It does not have the key property that transactions that occur "later" in the block can be validated before the transactions they depend on are validated. Sharding will hit a wall faster than you can say "O(n/64) is O(n)". Ethereum will get a lot of mileage out of L2, but the fundamental overhead of synchronization in L1 will never go away. The best case scaling scenario for ETH is an L2 system with sublinear validation properties like UTXO. If the economic activity on that L2 system grows larger than that of the L1 chain, the system loses key security properties. Ethereum is sequential by default with parallelism enabled by L2, while Bitcoin is parallel by default with synchronization forced into L2.
Finally, what about CSW? I expect soon we will see a lot of people shouting, "it doesn't matter who Satoshi is!", and they're right. The blockchain doesn't care if CSW is Satoshi or not. It really seems like many people's mental model is "Bitcoin (BSV) scales and has smart contracts if CSW==Satoshi". Sorry, but UTXO scales either way. The checksig trick works either way.
Coin Woke.
submitted by -mr-word- to bitcoincashSV [link] [comments]

What are Bitcoin and Other Cryptocurrencies Backed By?

Bitcoin was created back in 2009 and became the first cryptocurrency ever designed. Cryptocurrencies have become increasingly popular in the last few years as they offer an efficient and decentralized way of transferring money.
Cryptocurrencies have always been an alternative to banks and fiat money. But why do they have any value at all and who dictates what they are worth? The value of Bitcoin is really calculated through supply and demand. The digital asset itself is backed by nothing more than perhaps the blockchain ledger.
Every single cryptocurrency uses a blockchain ledger, a system that records transactions between two or more parties in a verifiable and permanent way. This certainly adds value to Bitcoin and cryptocurrencies. However, it is not what determines their price.
Why Things Have Value
Why does anything have any value at all? It has mostly because of supply and demand. Traditional currencies, for instance, are only backed by the government that issued them. Digital money, like Bitcoin, is not backed or linked to any physical reserves like gold and can certainly lose value due to different factors.
Cryptocurrencies have value because they require ‘work’ to exist. Cryptocurrencies are maintained thanks to the mining process, a process in which transactions are verified by different people. This process requires a certain amount of work, electricity, and money.
Key Factors That Affect The Value of Cryptocurrencies
Since most cryptocurrencies are not physically backed by anything, their value is determined through supply and demand based on a few important factors. One of the biggest advantages of cryptocurrencies is scarcity. The supply of most cryptocurrencies is fixed, and, unlike traditional currencies, no one can issue more than the maximum limit. This means that cryptocurrencies are deflationary by nature.
Another key factor that benefits cryptocurrencies is divisibility. Any cryptocurrency can be divided into smaller units. A simple change in Bitcoin’s code could allow the digital asset to be divided into infinitely smaller units at any time.
Additionally, transferring cryptocurrencies can be extremely fast and cheap compared to traditional methods. Fees are somewhat fixed no matter the amount you send, which means that theoretically you could send 1 million Bitcoins to someone and pay only a few dollars in fees (or even less).
In a way, one could say that Bitcoin and cryptocurrencies are backed by the public’s faith in them as they have realized that the current monetary system is not as robust as one might think.
Why Are Cryptocurrencies so Volatile Then?
In comparison to traditional currencies and even stocks, cryptocurrencies are far more volatile, meaning that the current price of any given crypto can change drastically in hours. It’s quite common to see Bitcoin’s price go up or down 5-10% within a few days. In fact, even in periods of low volatility, most cryptocurrencies still experience price moves of up to 1-2%, which is considered extremely high in traditional markets.
The explanation, however, is quite simple. Cryptocurrencies, in general, lack the liquidity that the rest of the markets enjoy. According to statistics from Statista, the average daily turnover in the global foreign exchange market was around $6.5 trillion daily. The cryptocurrency market, on average, sees around $80 billion in daily trading volume, and according to various sources, a lot of the volume is actually fake.
The problem with illiquidity is that someone who wants to sell or buy a huge amount of Bitcoin or any cryptocurrency will simply ‘eat’ all the orders in the order book of the exchange, catapulting the price up or crashing it. That is the only reason why cryptocurrencies, in general, are extremely volatile.
Some Cryptocurrencies Are Actually Backed by Things
There are, however, some cryptocurrencies that are backed by gold, assets, and even fiat money. Tether (USDT) became the most popular cryptocurrency backed by fiat, later known as a ‘stablecoin’.
Stablecoins
A stablecoin is designed to always be worth $1.00 by maintaining 1 dollar in some sort of reserve. The first stablecoin to become widely popular was Tether, however, there was a lot of controversy surrounding it. Most of the criticism came from the fact that Tether Limited was unable to prove they actually have the funds to cover all the Tether issued.
Additionally, on 30 April 2019, Tether Limited’s lawyer actually admitted that each coin is only backed by $0.74 in cash.
Currently, there are over a dozen stablecoins that are backed by fiat, commodities, and even cryptocurrencies. TrueUSD is similar to Tether but it is considered to be one of the most reliable stablecoins currently as the company behind it has been extremely transparent and conducted an independent audit back in March 2019.
A more complex stablecoin is Dai, which is backed by Ethereum and pegged to the dollar. The system behind Dai basically locks Ethereum in a public contract. If the value of Dai distances too far from $1, the system will make use of the contract to stabilize it back. There is, however, a small problem: Dai is not entirely decentralized as the technology behind it is being monitored by the Maker Foundation.
DigixDAO is another stablecoin and it’s backed by bars of actual gold. It is an ERC-20 token created back in 2014. The digital asset is entirely decentralized and autonomous and can in fact be extended to be backed by other precious metals and even physical assets. According to the company, the gold is stored in custodial vaults at the Singapore Safe House, and 1 DGX will always equal 1 gram of gold.
Cryptocurrencies Backed by Assets
Not all cryptocurrencies backed by assets are stablecoins. For instance, the first oil-backed cryptocurrency was introduced by Venezuelan President Nicolas Maduro back in 2017. El Petro, although highly criticized, is supposedly the first cryptocurrency to be backed by oil thanks to the country’s huge oil and mineral reserves.
Petro is, however, not pegged to anything, and its value can increase or decrease at any given time.
Tokenization of Assets
Something that has become quite popular over the last few years is the tokenization of traditional stocks and assets. There are countless blockchain startups tokenizing almost anything to represent ownership.
The tokenization of assets brings numerous benefits like greater liquidity, more transparency, cheaper and faster transactions, and more accessibility. Tokenization itself is quite difficult to regulate, and all tokenization assets have to be compliant with the law, something that issuers struggle to achieve.
Conclusion
While traditional cryptocurrencies are not necessarily backed by anything physical, they still hold a lot of value solely based on supply and demand. This is the case with numerous other assets and even fiat money.
Cryptocurrencies have come a long way and there is a wide variety of them. Stablecoins are the most popular when it comes to asset-backed cryptocurrencies. They serve as an alternative to fiat money and bring a lot of liquidity to the market. There are definitely concerns as people question their stability, however, they have become an important factor in the market.
Additionally, other projects aside from stablecoins have implemented asset-backed cryptocurrencies. There are numerous cryptocurrencies out there backed by precious metals, physical assets, stocks, and even other cryptocurrencies. We are definitely going to see even more in the near future as they bring a lot more security to investors and the crypto space in general.

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submitted by SwapSpace_co to CryptoTechnology [link] [comments]

Debunking Cryptocurrency Myths

Debunking Cryptocurrency Myths

https://preview.redd.it/bly69bsxwu051.jpg?width=1280&format=pjpg&auto=webp&s=4ddf296c34fc92b73ef0655d05e7d689909fa161
Now that we almost familiarized ourselves with the basics of cryptocurrency, the Swipe team would like to shed light on the most common misconceptions about it.
In this article, we aim to discuss the reasons why these myths exist and correct the common tales behind them.
1. Cryptocurrency is A SCAM
NOT. We have to set this record straight once and for all. Cryptocurrencies are the digital counterpart of physical currencies. The only difference is this kind is purely virtual, meaning it doesn’t physically exist. Instead of going through any central authority (bank), it runs in a blockchain, a digital ledger that lets users safely and easily transact and store cryptocurrencies.
So why do people think that it is a scam? It is because of the bad players who try to take advantage of this new technology. A lot of new and naïve crypto investors fall into Ponzi-type schemes that promise huge investment returns at a little or no risk at all.
Scammers will also try to lure people in making them believe they offer related services in return for crypto payment. The concept of cryptocurrency is to make the current financial transactions easier, which is why some fall for this bait. These types of investments and services should be viewed skeptically. If there are people who are trying to scam you of your money, there will also be people who will try to scam you of your cryptocurrencies. But this doesn’t mean that money and cryptocurrencies are a scam.
In cryptocurrency, there is no central authority to re-check the user’s transactions. In cryptocurrency, there is no central authority to re-check the user’s transactions. Users must be responsible enough when managing their crypto assets and activities.
2. It is NOT SAFE
AGAIN WRONG. Cryptocurrencies are safe unless people expose themselves to illicit transactions. Remember, even the most successful businesses get highjacked, so what is the possibility that cryptocurrencies will be immune to it?
Most of the cryptocurrency transactions run in a blockchain, a digital ledger that uses cryptographic measures to process and transactions, making it more likely impossible to be compromised. However, this doesn’t mean that your cryptocurrencies are totally immune to hacking and phishing.
Some users choose to manage their cryptocurrencies themselves, but there is also a number who rely on exchanges or digital wallets run by different parties. When using devices and software such as mobile applications to manage crypto funds, one must make sure that their device is free from any malware and viruses and that they set strong passwords for wallets and accounts that deal with their cryptocurrency funds. Remember, cryptocurrency transactions are irreversible, so one must make sure that their devices and applications are virus-free and secured.
But how can the users prevent this from happening? Prior to purchasing cryptocurrency, do proper research on which exchange and digital wallets are perfect for their lifestyle. Check if the company is properly regulated and compliant with the existing laws.
Swipe Wallet carries numerous licenses around the world. At present, it has a Virtual Currency Wallet License, and Virtual Currency to Fiat Exchange License issued both in Estonia covering the European Economic Area.
Aside from this, setting up a strong password and enabling two-factor authentication (if applicable) are strongly recommended. This adds an extra layer of security to your software, making it less prone to any cyberattacks.
3. It DOESN’T HAVE A VALUE
THERE IS. In fact, as of writing, one Bitcoin is priced at $9,096.37, which you can spend and convert any time through the use of your digital wallets. Cryptocurrencies offer a faster way of receiving and sending money through the use of blockchain technology, a better alternative to the usual bank remittances people do. It actually works like fiat currencies, only that cryptocurrencies are decentralized and not run by any central or governing authority.
Skeptics don’t believe in cryptocurrency because they think it doesn’t have any intrinsic value just because of its digital nature, and it is not backed up or supported by anything (government or central authority).
So, why the prices go high even if some people say it doesn’t have any value? Simple explanation: though cryptocurrencies are prone to volatility, remember it has a finite supply. As more demand for crypto supply increases, its prices go higher. This shows that cryptocurrency users have trust in the system, giving it more value. Proving that you always don’t need to see it physically in order to believe in it.
A good cryptocurrency user must realize that due to the relatively new concept or market of cryptocurrency, it is prone to a lot of constant gains and losses. When acquiring these, one must have an open mind that the prices may increase and decrease anytime. Having a diverse investment portfolio (not just in cryptocurrency) helps to reduce the risk of huge losses.
4. Cryptocurrency SUPPORTS Illegal Activities
DEFINITELY WRONG. This is one of the biggest myths that surround the cryptocurrency industry. The reason behind this is the misconception that cryptocurrency transactions are entirely anonymous, making people believe that it was made for illicit activities.
Most cryptocurrency transactions are traceable through the public address shown in the blockchain. However, it is only limited to the amount and address, not the identity of the sender. This concept made bad entities try to abuse the latest technology discovery. But this doesn’t mean that tracking their details is a difficult task.
Bitcoin, Ethereum and other digital currencies, and wallets implement their own ways to track transactions through a KYC or Know Your Customer service without asking too much of personal information than most of the normal banks do.
5. Funds are EASILY STOLEN
YES and NO. How so? There is a big possibility of funds getting stolen if the users will not practice precautionary measures when managing their cryptocurrencies. Even in fiat currencies, if people will just leave their money somewhere unsafe or in shady institutions, it will be prone to theft.
As a general rule, having tight security measures on a chosen crypto trading platform and wallet will help lessen any tendency of experiencing unfortunate events. Users have to make sure they are only dealing with reputable trading platforms and wallets. There are a lot of users who fell victim to fake wallets. To avoid making this big mistake, ALWAYS do a background check and don’t just trust what search engines show right away.
People who are not careful enough to make security actions and discern any fraudulent sites will be prone to having their cryptocurrencies stolen. Cryptocurrency transactions are irreversible, and if you fell into these traps, your money will be long gone for good. Remember: everything is digital in Bitcoin. People must be extra cautious in making transactions as there are a lot of bad people who are evil enough that will try to steal your hard-earned money.
Wherever people go, there will always be bad players who will try to find ways to outsmart people. These myths sprouted because there are people who are victimized by scammers. It is important to stay vigilant and do proper research before making necessary transactions to avoid fraud. There are no shortcuts to success. No matter how advanced the technology is, nothing beats the decisions made by a responsible and critical consumer.
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This blog article is also posted at: https://sw.pe/blogcryptomyths
submitted by SwipeWallet to Swipe_io [link] [comments]

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