Why Banks are so Nervous About Bitcoin

There was a time where Bitcoin was not even on the radar, it was a novel idea that was primarily used by thieves and drug dealers on the dark web. Nothing to be afraid of in terms of holding a monopoly on money.

However, that same little upstart is now disrupting the system of things; from Bitcoin and other cryptocurrencies, ICOs and the ever impressive Blockchain technology. This is now a legitimate threat on traditional banks.

"Bitcoin’s skyrocketing run in value, as well as adoption and mainstream acceptance, has led to banks - and regulators, getting very nervous and instigating a few knee jerk reactions. These reactions are, however, simply asserting the fact that Bitcoin is a legitimate disruptive threat."

• Bitcoin taking on the banks

Regulators are trying to play catch up with Bitcoin and other cryptocurrencies, realising now that it’s not going away. In fact, it is challenging their monetary system which is intrinsically linked to banks, and especially central, government-backed, banks.

China, especially, Russia, recently, Japan and the US have played their hands in varying degrees of harshness in efforts to try and control the decentralized monetary idea.

In fact, traditional centralised, powerful organisations like banks, governments, regulators and technology behemoths are all spending billions in figuring out how to use and control distributed trust technologies.

• A powershift

Banks have existed unchallenged for hundreds of years, and that is the key issue here; Bitcoin, backed by a solid platform such as Blockchain technology, is a ghost that is incredibly hard to control due to its decentralized nature.

"John McAfee has been brazen about regulators’ power plays to try and control Bitcoin, saying that they will never be able to ban it."

The power and control of money is being ripped away from traditional institutions, which can also be seen on Wall Street. Some of these traditional investors are siding with what could be the future, while others vehemently denounce it.

Individuals can now enter into direct peer-to-peer trusted exchanges with strangers. They no longer need a central institution to vouch for the other party.

Just like the fax machine, the library, even metered taxis, new technologies have come along and made others obsolete. Banks are now in the sights of Bitcoin and are in their death throws, as they lash out with the power of states behind them.

However, there’s no stopping progress, and even with state-backed regulations trying to wrestle the money of the people under control, banks have every reason to be nervous.

Source : Cointekegraph

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Slovenia Prepare to Become A Destination in Europe For Leading Blockchain Technology

The government of Slovenia has announced that it aims to position the country as the leading destination of Blockchain technology in the European Union (EU). The government is also studying the potential applications of the technology in public administration.

In his speech at the Digital Slovenia 2020 event in mid-October 2017, Prime Minister Miro Cerar stated that the country’s regulatory agencies and ministries are already studying the technology and its potential applications.

"The regulatory bodies and ministries are already studying Blockchain, and the state is participating in activities at European level in the area of the introduction and regulation of this technology. We are also already laying the foundations for the initial pilot testing of the technology in the state administration."

• Other Blockchain developments in Slovenia

On October 3, the Slovenian government launched the Blockchain Think Tank as part of the Slovenian Digital Coalition.

The think tank will serve as a point-of-contact between Blockchain developers, industry players, and the government. It will also coordinate the creation of various educational materials on Blockchain with different companies and assist in the drafting of new regulations around the technology.

In his speech, Cerar claimed that the government is extending its full support behind the technology.

"Slovenia as a whole is, therefore, setting itself up as a Blockchain-friendly destination, and to that end it is establishing the pillars of a national Blockchain ecosystem in the area of the transfer and spread of information, the adoption of legal regulations and the promotion of a supportive environment for the development of companies working in the area of Blockchain technology.”

Meanwhile, the Slovenian Financial Stability Board has issued a warning to Slovenians advising them to exercise caution when investing in initial coin offerings (ICO) and digital currencies due to the absence of regulations covering them.

Source : Cointekegraph

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Coinbase Rolls Out Instant US Bitcoin Buys

Coinbasehas removed a major hurdle for US customers purchasing Bitcoin via bank transfer, cutting the waiting period from 3-5 days to “instantly.”

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Excited to announce instant digital currency purchases using a US bank accounthttps://blog.coinbase.com/announcing-instant-bitcoin-ethereum-and-litecoin-purchases-on-coinbase-c29d8a94e152 …

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Announcing instant bitcoin, ethereum and litecoin purchases on CoinbaseWe are excited to announce the ability for customers to instantly purchase digital currency using a US bank account. Previously, customers…blog.coinbase.com

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“Previously, customers who purchased using a bank account had to wait several days before receiving their digital currency,” the post clarifies.

“Customers can now buy up to $25,000[...] and receive access to their digital currency immediately.”

Under the previous setup, customers would agree an exchange rate and take the risk associated with fluctuating prices in the five-day period prior to receiving their coins. On social media, users frequently reported waiting up to double the time stated by Coinbase itself.

The stakes are now higher for Coinbase’s coffers, the company is also taking on exposure from coins cleared off its books prior to the equivalent fiat payment reaching its account.

Zach Abrams, head of product, was quoted by TechCrunch as saying:

“Coinbase uses proprietary fraud prevention systems it has developed over the last five years, to determine how this instant purchase feature is rolled out to groups of customers, and that the customers with access to this feature have sufficient balance in their bank account with good purchase history.”

Around 15,000 account holders will receive the instant buy function initially, with a wider rollout coming later.

Source : Cointekegraph

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India Central Bank ‘In Process’ of Making Bitcoin Regulation

India has refused to comment on its progress with cryptocurrency regulation, only appearing to confirm that official plans were “in progress.”

Reports by local news outlet Economic Times quote Reserve Bank of India Deputy Governor NS Vishwanathan as making comments to the press at an event in Calcutta today.

“I can’t comment on a policy that is still in the making,” he said.

Draft proposals of a recommendations on how to regulate cryptocurrency in India surfaced in August. These were the result of a government panel specifically tasked with researching the issue in April.

Cryptocurrency investment and trading have ballooned in the country ever since Prime Minister Narendra Modi’s highly contentious cash reforms began in November 2016.

Dash Core CEO Ryan Taylor said earlier this week:

“Measures of economic freedom are strongly correlated with economic success throughout the world. In India, a great deal of friction was introduced with the immediate banning of the vast majority of the country’s circulating currency. In contrast, digital currencies are freely transferred person-to-person anywhere in the world instantly. This can have a dramatic positive impact on an economy suffering from onerous financial restrictions like India.”

Indians have overwhelmingly used cash as the basic means of exchange, and aggressive government plans to make payments digital and link transactions to participants biometrically have received considerable criticism.

Taylor added:

“I doubt digital currency will overtake the rupee anytime soon, but dysfunction certainly creates the right environment to motivate consumers and businesses to seek an alternative like digital currency to address their needs.”

Source : Cointekegraph 

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Race towards the First “Crypto-Country” in the World

The small European country of Estonia aims to become the first crypto-country in the world. The country is already in the midst of digitizing its government services using Blockchain technology, the tech behind digital currencies like Bitcoin.

The Estonian government’s digitization project reached a whole new level in 2014, with the government’s e-residency program. Under the initiative, any individual around the world can file an online application to become a virtual Estonian citizen. As a digital citizen, he/she can access the same online platforms that Estonia’s physical economy is based on, and the same online public services that domestic Estonians use.

The adoption of Blockchain has also allowed Estonia to introduce an online voting system during national elections. However, only physical residents are allowed to vote under the system. The country is also involved in various public services projects that are powered by Blockchain, including health services, and originally planned for its own digital currency.

Other Blockchain developments worldwide

Aside from Estonia, various countries around the world are also adopting Blockchain in public-sector applications, with the latest EU country vying for the same position being Slovenia.

In the UK, the government is currently piloting a Blockchain-based system for the payment of health benefits claimants. In Russia, Vitalik Buterin has signed a deal with a Russian state-owned bank for the creation of a special national system called Ethereum Russia.

The government of China, meanwhile, has developed a prototype of a prospective national cryptocurrency in the country since June 2017. By September, China decided to better regulate ICOs by banning them and eventually considering licensing options down the line.

In her report, Georgetown University cyber-lawyer, Dr. Clare Sullivan, claimed that the government of Australia is studying ways to replace its separate passport and birth certificate databases with a single Blockchain-based system.

“It is not necessarily cybersecurity concerns that have prevented the increased digitization of government services up to this point, though Blockchain is indeed much more secure than existing systems. Rather, it has been the importance of ‘know-your-customer’ protocols — the need for governments, banks, and other institutions to verify individuals’ identities using physical ID documents and in-person interactions.”

Source : Cointekegraph 

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Vladimir Putin: Cryptocurrency Poses 'Serious Risks'

Russian president Vladimir Putin said in a meeting today that cryptocurrencies pose significant risks related fraud and money laundering.

Quoted by Russian state news service TASS, Putin was speaking during a meeting that was focused on the subject of cryptocurrencies and financial tech more broadly. In the meeting, he formally voiced his support for new rules around cryptocurrency trading, stating that Russia should look to international examples as a guide when developing those regulations.

Indeed, the meeting represents some of Putin's most comprehensive comments on the subject to date. He first spoke about cryptocurrencies in the summer of 2015, remarking at the time that there were "serious, really fundamental issues related to its wider usage." In his new statements, Putin highlighted the rising profile of the technology, while also echoing those 2015 comments.

Putin was quoted as saying:

"Virtual [currencies] or cryptocurrencies are becoming and have already become more popular. They have already become or are turning into a full-fledged payment instrument and an investment asset in certain countries. At the same time, use of cryptocurrencies also carries serious risks."

On the subject of the rules themselves, Putin threw his support behind regulations that would protect consumers and facilitate the development of new financial products.

"We should develop such a regulatory system on the basis of international experience that will make possible to make relations in this sphere systemic, definitely protect interests of citizens, business and the government, and provide legal guarantees for work with innovative financial instruments," he said.

His comments come after a senior official for Russia's central bank stated publicly that his institution will support efforts to block access to external websites that offer cryptocurrency brokering services in the country. Representatives from the Bank of Russia were also present at the Putin meeting, according to sources.

Source : CoinDesk

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New Gibraltar Project To Regulate Blockchain Startups

Gibraltar's Financial Services Commission has published a draft of its upcoming regulatory framework for firms offering blockchain services.

Planned to come into effect from January 2018, the new rules will cover any commercial use of distributed ledger technology (DLT) as a means to store and transmit value. While this would include cryptocurrency exchanges, the word "value" is also defined as including "assets, holdings, or other forms of ownership, rights or interests." Investment services (and other controlled financial offerings) connected to the tech would be covered as well.

Under the framework, DLT service providers will be granted a working license, providing they conform to some regulatory principles.

As defined by the paper, these principles include honesty, integrity, the protection of customer assets and maintaining a high degree of cybersecurity. And once the rulings are accepted by Gibraltar's legislature, the British Overseas Territory will be among the few jurisdictions worldwide to offer a fully regulated framework for firms working with blockchain.

Speaking to the Gibraltar Chronicle, minister of commerce Albert Isola said that this was typical of the countries determination to facilitate innovation while maintain a strong regulatory presence. He said: "We have done this before and will do so again."

Samantha Barrass, chief executive of the Gibraltar Financial Services Commission, said:

"This regulatory framework demonstrates that regulators can keep up to date with technology without stifling innovation, protect consumers and create a well-regulated safe environment in which financial technology can flourish."

Earlier this year, the country's primary securities exchange, the Gibraltar Stock Exchange (GSE), revealed a plan to integrate blockchain into its trading and settlement systems.

And, last month, the Gibraltar Financial Services Commission issued an investor warning on initial coin offerings (ICOs). The risks contained in ICO investments led authorities to consider a complimentary framework for token sales on a DLT, according to the statement.

Today's draft made no direct mention of the blockchain use case.

Source : CoinDesk

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Bitcoin's Price Keeps Rising, But Can he reach $6,000 ?

Bitcoin hit a new record high of $5,856 on CoinDesk's Bitcoin Price Index this morning, but the question everyone will be asking is, can the rally continue?

At press time, bitcoin is trading at $5,610 levels, as per CoinMarketCap data. Bitcoin's week-on-week performance of over 28 percent (up more than $1,200,) is double S&P's year-to-date gains of 14 percent.

Further, the cryptocurrency is up 96 percent from its Sept. 15 low of $2,980, and, on a year-to-date basis, is up almost 500 percent.

Following a rally of such astonishing proportions, it would be quite logical to assume bitcoin prices will trade sideways, or witness a healthy pull-back in the short run

The price action analysis indicates that bitcoin could find a short-term top in the range of $5,800-$6,000.

A short-term consolidation around $5,800 or brief spike to $6,000 followed by a short-term pull back to $5,000-$5,300 looks more likely.

Source : CoinDesk

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PBoC Digital Currency Director Calls for Centralized State Cryptocurrency

China may not recognize bitcoin as a legal currency, but it seems to have a clear vision for a state-issued alternative.

At a meeting hosted by the International Telecommunication Union this week, Yao Qian, the Director of the Digital Currency Research Institute under the People's Bank of China, reportedly boasted about the potential of a state-owned digital currency, while suggesting that there is an inherent lack of value anchoring public cryptocurrencies like bitcoin.

According to a report by Yicai, Yao also framed a state-issued digital currency as a way to stabilize domestic fiat currency, while better securing country's financial status.

Although the publication made clear Yao's comments reflected his own opinions, the remarks nonetheless reveal how the country may choose to direct the future development of digital currency.

Yao told attendees:

"The value of cryptocurrencies such as bitcoin primarily comes from the market speculation. It will be a disaster to recoganize it as a real currency. And the lack of a value anchroing inherently determines that bitcoin can never be a real one."

Launched by China's central bank in June this year, the Digital Currency Research Institute focuses on R&D related to blockchain-based digital currency. Currently head of the institute, Yao also served as the deputy director of PBoC's technology department.

Pointed barbs

Elsewhere, Qian had more criticism for public cryptocurrencies.

In yet another statement, he was quoted as saying that the deflationary nature of economic systems utilizing the technology could be a hinderance to their success. "A total cap of 21 million like bitcoin whose current supply also halves every four years is actually driving backward along the currency evolution," he said.

Yao went on to argue that a state-owned digital currency, however, creates tangible economic values and helps stabilize the market position of fiat currencies.

"The nature of a state-owned digital currency is a government liability issued to the public," he said. "And it's backed by the sovereign credibility."

Yet, Yao takes a different approach from current trials of other central banks' cryptocurrency projects that focus on the distributed ledger technology.

Citing the RSCoin design concept by the Bank of England as a promising example, Yao argued that such state-owned digital currency should not be confined by the ideology of the blockchain and DLT.

"RSCoin pictures a system that is controlled by the central bank," he said. "The role of central banks may not just be deciding how much to supply but also designing the rule of the supplying algorithm."

Source : CoinDesk

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Wall Street Analyst Bernstein: Bitcoin Is a 'Censorship Resistant Asset Class'

Bitcoin is a "censorship-resistant asset class" – but not quite money – according to analysts for New York-based firm Bernstein.

In a note sent to clients on Wednesday, according to Business Insider, analysts explored that question, ultimately concluding that while it shares some of its characteristics, it falls short under what would be considered "money" today.

"Fiat money is still the final form of settlement – governments still collect taxes in fiat money and salaries are still paid in fiat money," the note explained. "Thus, for now, Bitcoin has only emerged as a 'censorship resistant' asset class."

The analysts notably reckon that bitcoin's ecosystem functions more like a self-reliant economy than, say, strictly a network of digital money.

"Bitcoin could be seen as virtual 'bearer cash' economy supported by a decentralized 'trustless' network – a new crypto economy with its own protocol or policy," the firm wrote in the note. "The faith of its citizens – software developers, miners, investors, early individual and sovereign state adopters [–] would drive the value of that network."

Bernstein's determination is unlikely to sway proponents who say cryptocurrencies represent a new form of money. Indeed, it's a sticking point that has drawn both supporters and critics for as long as bitcoin has been in the public eye.

Some observers have struck a middle ground in the argument. Last month, investor and anarcho-capitalist Doug Casey argued that while bitcoin might be money, it's not likely to last in the long-run.

Source : CoinDesk

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Cryptocurrency Miners Are From Now On Rewarded By Torrent Website

A torrent downloads website has started offering visitors the option to enable a cryptocurrency mining feature and earn incentives for the platform, according to a TorrentFreak report.

The news indicates a possible shift in tactics by torrent websites, after a number of popular services have been found to have installed hidden cryptocurrency mining code that harnesses visitors' computer processing power without seeking permission.

Some, such as The Pirate Bay, have notably failed to inform site visitors that their CPU was being used by the miner, a strategy that led domain supplier Cloudflare to classify the undisclosed process as "malware" and remove the domains of torrent site ProxyBunker for also hosting mining code.

TorrentFreakadded that the unnamed "private tracker," an invite-only torrent site, has not only made this feature optional, but it also incentivizes members to let their CPUs be used for cryptocurrency mining by offering "upload credit" in return.

A resource that members require in order to download content, upload credit must usually either be purchased or generated from – as the name suggests – uploading new content. The new system allows visitors to mine monero and then trade it in for the credits.

The tech news source further cites an increasing number of torrent websites now using more transparent models that allow visitors both a choice in the cryptocurrency mined and a way to track the process.


Source: Coindesk

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Russia's Central Bank Support Efforts to Ban Access To Bitcoin Websites

The first deputy governor of Russia's central bank, Sergei Shvetsov, has said that his institution will support efforts to block access to external websites selling cryptocurrencies in the country.

Speaking at a conference on Tuesday, Reuters reports that Shvetsov cited the "unreasonably high risks" involved in cryptocurrency investment as a reason for the proposed measure, adding: "We cannot give direct and easy access to such dubious instruments for retail (investors)."

As such, the Bank of Russia will be working alongside the judiciary to ensure the closure of websites offering these services – a crackdown that he indicated will extend to "all cryptocurrency derivatives."

Russian news agency TASS quotes Shvetsov as stating:

"We consider all cryptocurrency derivatives to be a negative development on the Russian market and do not consider it possible to support it, and will even assume measures to restrict potential operations with such instruments made by the regulated part of the Russian market. Meanwhile, we assume efforts aimed at closing external websites that allow Russian citizens to acquire such assets together with the General Prosecutor's Office."

Shvetsov further added that, with bitcoin being an asset that can generate high returns very quickly, it shows signs of being a pyramid scheme.

The move to block access to cryptocurrency trading websites follows a number of warnings from Russian authorities in the past few months.

Alexey Moiseev, the country's deputy finance minister, said in September that he expects upcoming legislation to feature a flat-out ban on payments made in cryptocurrency. Earlier the same month, deputy governor of the Bank of Russia Dmitry Skobelkin told Bloomberg: "China doesn't recognize cryptocurrency as payment and forbids ICOs. Our views are absolutely similar."

N.B. Several days ago Russia's foreign ministry has sharply criticized a Greek court's decision to extradite Alexander Vinnik to the US for his alleged role inlaundering funds through the BTC-e bitcoin exchange.


Source: Coindesk

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Real Blockchain Estate Initiative Launches By Dubai Land Department

Dubai's land registrar has revealed it is developing a system that would seek to record all local real estate contracts on a blockchain.

The project, part of a sweeping plan to secure all government documents on a blockchain by 2020, was announced this week by Dubai Land Department, the government agency tasked with overseeing land purchases and approving real estate trades.

In statements, the agency framed blockchain technology as a way to gain the confidence of global real estate investors, and as a convenience for tenants, whose leases would be recorded by the system.

Sultan Butti bin Mejren, the land department's director general, said in a statement:

"Our aim is to unite all real estate and department services on a single platform. We hope to complete our project in the year 2019–2020."

In a press release issued Saturday, the agency said, "The technology will allow investors residing in Dubai and around the world to verify property data that is backed by timestamp signatures, enhancing the accuracy of data, the credibility of investment transactions and the transparency and clarity of the market."

On the leasing side, the department said, the platform will connect renters not only to landlords, but also to other property-related billers, such as electrical, water and telecommunications utilities.

The latter will allow tenants "to make payments electronically without the need to write cheques or print any paper … within a few minutes at any time and from anywhere in the world."

Partnering with the Dubai Land Department on the initiative are Asset Management Group, one of the largest real estate developers in Dubai; Emirates NBD, one of the region's largest banks; the furniture chain IKEA; and the Emirates Identity Authority.

Dubai has also explored the technology for airport security, trade finance and immigration controls, working with IBM and rolling out the red carpet for startups in a notable effort to become a blockchain innovation hub.


Source: Coindesk

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Blockchain Startup Gives A Hand to The Indian State for Land Registry Pilot

The Indian state of Andhra Pradesh is working with startup ChromaWay on a land registry pilot that uses blockchain to track the ownership of property.

The state government has been exploring a number of uses for blockchain in recent months, and in September it inked a separate partnership with startup WISekey related to identity solutions. Andhra Pradesh is one of several regional governments in India to look into applications of the tech, and land registries – systems used to keep track of who owns what property – have been highlighted by other governments worldwide as one area in which the technology could lead to improved services.

The test platform being built with Sweden-based ChromaWay is part of the Fintech ValleyVizag initiative launched by the southeast Indian state.

According to the parties involved, it utilizes a distributed ledger on the back-end and a straightforward web-app front end, which provides "radically transparent access to data," according to ChromaWay.

J. A. Chowdary, special chief secretary and IT advisor to the chief minister of Andhra Pradesh, said in a statement:

"Blockchain is the technology of the future. It will not only change the way we perceive processes but it also has the potential to transform the economy. Of course, we all are yet to fully discover this technology and hence the Government of Andhra Pradesh has engaged with startups from across the globe such as Chromaway to run proofs of concept within its own departments."

The project represents the latest public sector partnership for ChromaWay. Sweden's land registry authority, the Lantmäteriet, revealed in April that it is working with the startup on a land registry initiative. Other participants in that effort include banks SBAB and Landshypotek, as well as the consultancy Kairos Future.


Source: Coindesk

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A Real Competition Between Companies to Disrupt Apps Market Using Blockchain

Accusations of “bubble” abound even as Bitcoin price surges back toward its record high of $5,000. There are also suggestions that Bitcoin’s price should be viewed in terms of the S-curve of rapid adoption.

Others say that Bitcoin will reach $50,000, or even $1 mln, in due course. Hardcore skeptics such as Chase CEO Jamie Dimon believe that the government will ultimately shut down Bitcoin and bring this grand experiment to an end.

User “dashfriend” on the Dash Nation Slack comments:

“Isn’t ease of use one of the main catalysts for a bubble? I don’t see ease of buying yet for non-tech people.”

User “foxtrot” agreed:

“In order for a bubble to exist there needs to be saturation of the market...and with the crypto market still [in] its infancy, that seems highly unlikely...Hasn’t Bitcoin supposedly been in a bubble since it was $2?”

A powerful disconnect

Many digital currency investors and traders are focusing on the presence of institutional investors: banks, pension funds, mutual funds and the like. While such mega investors would certainly help push the price up, it seems that retail investors and users are always forgotten in such discussions.

With so many working on creating ETFs, regulated futures markets and so on, who is focusing on the little guy? Who is working to make sure that digital currency gets in the hands of as many ordinary people as possible?

It’s the apps

According to TechCrunch, the apps market is expected to reach $6.3 tln by 2021. By the end of this year, there will have been a total of 268 bln apps downloaded, with revenue exceeding $77 bln.

This is a staggeringly huge market, and with Google and Apple taking over a 30 percent cut of the profits, it’s a market ripe for disruption.

While many startups are trying to find ways to profit from this enormous market, to date they have been hampered by the Blockchains they build upon. Both Bitcoin and Ethereum are capable of about seven transactions per second, which is clearly not enough capacity to support a transformation of the apps market.

Competition is stiff

Among companies that aim at using Blockchain to disrupt the app market are Mobius, ChainLink and IOTA.

Cyrus Khajvandi, co-founder of Mobius, is anticipating the creation of “Smart Markets” where data from connected devices can be traded freely between other devices. According to Khajvandi, Mobius gives the example of connected appliances which contract with decentralized electricity generators to provide machine-to-machine payments. Such a system would use “smart contracts” and “smart auctions” to run appliances, using as little energy as possible at the lowest possible prices.

Mobius boasts Jed McCaleb as an early investor and advisor. McCaleb is the founder of Ripple and Stellar, and, somewhat unfortunately, the founder of doomed Bitcoin exchange Mt. Gox.

Mobius intends to be a leader in the Internet of Things (IOT), but to do so, they will face stiff competition.

IOTA has a significant head start in this area, seeking to “[make] every technological resource a potential service to be traded on an open market.”

Even in terms of their current product for app payments, Mobius has competitors such as ChainLink. In fact, ChainLink’s services sound similar to Mobius’ product. ChainLink’s website says:

“ChainLink is Blockchain middleware that allows smart contracts to access key off-chain resources like data feeds, various web APIs, and traditional bank account payments.”

Nothing is certain

BlockTower Capital cofounder Matthew Goetz probably said it best when he compared the digital currency and Blockchain boom to the Internet boom of the late-1990s. Goetz warns:

“You could be right on the thesis that cryptocurrencies are transformative, and you could make what you think is the right bet at the time, but remember one time you had Yahoo and then this thing called Google came along.”

Mobius, IOTA, ChainLink and others all sound interesting, but the market will ultimately decide on the winners and losers. Even if you can predict the general trend, it’s much more difficult to bet on exactly the right horse.


Source: Cointelegraph

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Bridging Gaps Between the Major Cryptocurrency Paradigms

Use of cryptocurrency has become more accepted and mainstream recently, and in the last six months there have been a couple of significant developments in crypto's progress towards widespread adoption.

First, the huge investments and price increases during the "summer of Bitcoin" have put cryptocurrencies in the news and shown they can retain investment value despite shocks. Secondly, the cryptosphere at large has seen a push to address and confront major issues that could impact user adoption long-term.

In search for good enough in all respects

Among these issues are those of compatibility and interoperability. Forks, lightning networks, and atomic swaps have all come to the fore as efforts are made to make increase user experience and efficiency. If the history of technology diffusion tells us anything, it is that mainstream users want solutions that are "good enough" in all respects (rather than excellent at just one or two things).

Cryptocurrencies that are easy to use, provide versatility, and bring platforms together will succeed best, and compatibility and interoperability are the name of the game Hcash (abbreviated from HyperCash) is a Chinese/Australian cryptocurrency project aiming to provide a wide set of features that would increase adoption.

Among Hcash's features is the ability to support integration of block-based and blockless-based transactions and currencies. Currencies like Bitcoin and Ethereum use conventional Blockchains, while others like IOTA operate on a blockless paradigm. There is a lot of room for different currencies to flourish, but those that offer interoperability and compatibility stand to become major players in their own right. Hcash, by aiming to allow for harmony between different paradigms and currencies, might be able to carve out a significant market share for itself.

Problem to be solved: bridging ecosystems and making user experience simple

Most people involved in investing or using cryptocurrencies will have noticed the considerable buzz behind IOTA, Byteball, and similar currencies. These use a blockless chain setup, in this case using Directed Acyclic Graph (DAG) technology.

The data format used in this type of chain is fundamentally different than in Blockchain-based systems like Bitcoin and Ethereum. This raises serious issues regarding interoperability and compatibility for making transactions and swaps between these two kinds of chains.

If managing conventional cryptocurrency transactions can be cumbersome for novices (which is very much the case), then comprehending and managing transactions between Blockchain-based currencies like Bitcoin and a tangle-based currency like IOTA would be prohibitively inconvenient.

Steps towards bridging the gap

Linking tangle-based and Blockchain-based systems is, therefore, a challenge. This is the principal aim of the Hcash solution. It creates sidechains to both types of systems which allows for flow of data and value, in effect becoming an intermediary platform between both.

On top of this, the Hcash team has built several features into their solution to make usability more fluid and secure. Notable among these is the unlimited nature of transactions, allowing Hcash users to "transfer unlimited times with a limited block size, no matter the speed of transfer or amount of transfer."

They have also chosen a novel governance structure that incorporates and accommodates both Proof-of-Work (PoW) and Proof-of-Stake (PoS) mechanisms, balancing the needs of both miners and users.

Hcash also supports privacy (using Zero Knowledge Proof technology), and has been future-proofed against the rise of quantum computing with quantum resistant safeguards.

These features all tick the boxes of a technology that will help to bridge the gap between DAG and Blockchain currencies while also allowing for a straightforward user experience.

Australia's progress in crypto

Hcash is a joint project between teams in Australia, Hong Kong and China. Australia has seen some progress in terms of cryptocurrencies lately, and Hcash has capitalized on the recent interest sweeping the country. Of course, the Chinese public has already shown a great interest in mining and investing in crypto.

One thing of note about the Hcash project is that it has a strong academic foundation. The solution has been developed by computer scientists and researchers at three major universities (Monash University, Shanghai Jiao Tong University, and Hong Kong Polytechnic University) and already has usage and support across the Australian third-level educational industry and mainstream markets.

The team are therefore very research-focussed and the project is open-source. The Hcash project is addressing unresolved issues in the cryptosphere, and has considerable expertise on its advisory board including one of the founding researchers of the privacy-focused cryptocurrency Monero.

It is also worth noting that the project is sponsoring the World Blockchain Summit in Dubai, during which their CTO Khal Achkar will be speaking.

The strong academic foundations of the currency have attracted a lot of interest from investors ahead of the full launch of the network in the coming months.

Bringing systems and protocols

The crypto world is growing in every direction, solving problems for many different users. With a rapidly expanding base of solutions, many observers are turning their attention to the cohesion between players in the ecosystem.

At the same time, the increased mainstream adoption of crypto brings about a need for more user-friendly platforms.

If Hcash can address these two issues of interoperability and usability, they could cement their place in the ecosystem and benefit many users.

Source: Cointelegraph

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