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What is Bitcoin?

Bitcoin is a digital crypto-currency with no single point of failure due to its decentralized peer-to-peer architecture. The source code is publicly available and changes to the reference Bitcoin client are made via concensus within the community. Advantages of Bitcoin include irreversible transactions (i.e. no possibility of chargebacks as with credit cards), pseudo-anonymous, limited and fixed inflation, near instant transactions, multi-platform, no double-spend and little to no barriers to entry and more. It was created by an anonymous person known as Satoshi Nakamoto. Find out more at WeUseCoins.com.

Bitcoin Latest News

A Beginner's Guide to Bitcoin - HuffPost


HuffPost

A Beginner's Guide to Bitcoin
HuffPost
It's possible that in the last few years, you've stumbled across a person or company that uses bitcoin. But what is it? Bitcoin is an emerging encrypted form of digital money, or cryptocurrency, that's growing in popularity and value internationally.

Posted on 21 September 2017 | 7:47 pm

This Ransomware Demands Nudes Instead of Bitcoin - Motherboard en_us


Motherboard en_us

This Ransomware Demands Nudes Instead of Bitcoin
Motherboard en_us
For years, cybercriminals have been extorting victims by locking their computers with malware. The hackers promise to give the victim their files back as long as they fork over the cryptocurrency—typically Bitcoin—within the stipulated time limit ...

Posted on 21 September 2017 | 5:38 pm

Op Ed: Lessons From a Cryptocurrency Hack (A Public Service Announcement)

Op Ed: Lessons From a Cryptocurrency Hack (A Public Service Announcement)

Cryptocurrency-related cyber attacks are on the rise. As cryptocurrency continues to explode in value and public awareness, we can only expect this trend to continue. I was recently the target of such an attack. I also personally know of multiple other cases of the same attack being successfully carried out. Even worse, this type of attack is becoming ever more common and is likely to see an even bigger boost thanks to the professional excellence of firms like Equifax, making it an urgent topic as almost everyone is at immediate risk.


This article describes this increasingly common attack vector and provides immediate steps you can take to protect yourself. I will also provide additional tools and best practices to further safeguard yourself and your funds more generally.


As a computer programmer active in the crypto ecosystem since early 2013, I’ve always been too aware of the constant threat of cybersecurity attacks and the possibility that I could be targeted at any time. Cryptocurrency is the perfect hacker pay day. Once it’s transferred away from your control it’s gone forever, and it’s easily liquidated in any number of ways. Black hats are constantly prowling for possible cryptocurrency holders.

As such, I’ve always taken the minimum precaution of keeping my coins off third-party accounts, and have always advised others to do the same. But what I couldn’t prepare for was how unnerving being the target of an attack could be regardless of your level of preparation. The hypothetical can become reality in a matter of seconds, and you never truly understand the personal value of putting proper security in place until it’s too late. For those with enough at stake, it can be ruinous. Ultimately none of my funds were compromised by this attack, but others have not been so lucky.

“But not all accounts are created equal for data thieves  —  and the most valuable online accounts to steal are like the ones belonging to Mr. Burniske, who is a cryptocurrency fan. In the few minutes it took to get control of his phone, the virtual currency investor saw his virtual currency password change and its accounts drained of $150,000.” -PYMNTS

The Attack

It started when I received a text message from my cellular service provider alerting me that my SIM card had been “updated.” Included in the text was a number to call if this “update” wasn’t in fact authorized by me. I read this text several minutes after it had been sent, and by the time I called the number provided a minute or two later, my cell service and data were suddenly cut off by what I began realizing must be an attacker. Almost immediately, I was also logged out of my Facebook messenger window right before my eyes. With control of my phone number, my attacker had managed to quickly reset my Facebook password and gain control of the account.

As the reality of what was happening to me sank in, I felt an initial wave of panic. Suddenly, I didn’t know if the years of precautions I had taken amounted to anything at all. I had no idea how robust the attack was, how deep the attacker had penetrated my numerous online accounts or what my first reaction should even be. I momentarily feared the worst. Could my coins be at risk?

I forced several deep breaths. Thankfully my coins were not at risk via a phone, social media or email hijacking. Reminding myself of this eased my fears and allowed me to focus on going on the defensive and taking back control of my accounts as quickly as I could.

Using FaceTime from my laptop, I was able to get a family member to call the number provided by my cellular provider’s text message and initiate the process to eventually retake control of my phone number. Using an old email strictly used as an emergency recovery email for situations such as these, I was also able to lock down my Facebook account and regain control soon after.

What I discovered once I logged back in confirmed that the attacker had specifically targeted me due to my public cryptocurrency involvement. In the brief span of time they controlled my Facebook account, they had sent the same message to several friends of mine also involved in the ecosystem, many of whom I’ve known for years. The messages claimed I had an emergency and needed to borrow several bitcoins or the equivalent value in alternate coins for a day. The attacker was in the middle of sending out many more such messages to even more of my friends when I regained control.

At the end of the day, the damage done to myself was limited to being spooked. Unfortunately, however, at least one of the recipients of my fake Facebook messages was later the target of the same attack. I’ve decided to learn from these events and share those lessons, and hopefully help some avert the worst. First and foremost is eliminating this specific and trivially easy attack vector completely.

How to Stop It Before It Happens

Text message two-factor authentication (2FA) is the default security precaution for most online accounts today, and cellular service providers are woefully unprepared for this reality. It is almost trivially easy for an attacker to contact your service provider and pretend to be you.

In all the cases I’ve personally observed, it began with the attacker identifying an individual likely to have cryptocurrency and contacting their cell provider. They impersonate their target using personal information like social security numbers and home addresses from any number of possible leaks, Equifax being the most obvious and concerning source.

After successfully convincing your cell provider that they are you, they then port your SIM card to a phone they control. This approach is known as a social engineering attack, and with today’s common security default of using text messages for 2FA, they immediately have the keys to the kingdom. With your phone number they can now reset the password to any account you have with text 2FA enabled, including cryptocurrency wallets and accounts.

The minimal action you should take right now to prevent this: Contact your cellular service provider and request restrictions to be placed on your account so that no changes can be made to it without special verification. This can include setting a password on your account or requiring you to physically visit a store with your ID to make any account changes. Call again once this is in place and attempt to change your own SIM card as a test to ensure the restrictions have indeed been put in place and are being properly enforced by your cellular provider.

This simple step means that no matter what information an attacker may have on you, socially engineering a takeover of your SIM card is no longer a trivially simple endeavor. However, this precaution isn’t ironclad, and there’s also a variety of other attacks you can be the target of.

Taking It a Step Further

Black hat actors tend to focus on the low-hanging fruit, which is why the social engineering SIM attack has become so prevalent. But it is by no means the only way to compromise your accounts, and as the low-hanging fruit become harder to find, attackers will move on to these other methods. I highly recommend everyone implement these precautionary steps to further secure yourselves. The upfront investment needed to set up these measures may seem tedious now, but can pay invaluable dividends in the future.

1. If you hold any significant amounts of cryptocurrency, invest in an offline hardware storage solution.

These devices contain your cryptocurrency private keys and can remain completely disconnected from the internet or any computer until you need to make transactions, so that your funds remain totally safe regardless of any of your other devices or accounts being compromised. These devices include OpenDime, TREZOR and Ledger. Even if you do not opt for any of these solutions, at a bare minimum do not store funds on third-party services such as Coinbase or exchanges, especially on any service or wallet that integrates email or a phone number to authorize access to funds.

2. Ditch text messaging 2FA.

Placing verification restrictions on your cellular service account is a big step up in security, but can still be circumvented by an insider or even just a careless customer service rep who doesn’t do their job properly. Text message authorization is also still too incredibly insecure to be relied on in any way, period. Recent research shows that intercepting text messages is a trivial task for someone with the right tools, and many other exploits are likely to be discovered in the future.

The first item on this list will protect your personal funds from theft, but as I learned the hard way your money isn’t the only thing at risk. With access to your social media accounts and emails, an attacker can trick your friends into giving them funds or exposing themselves in other ways. They’ll also obviously have a clear look into all your messaging and file history on those accounts, which can expose you and your social circle even more. Shoring up your 2FA is a big step in preventing this.

Eliminate all of your text messaging–based 2FA and at a minimum replace it with Google Authenticator. However, like storing cryptocurrency, you can take it a step further with a dedicated hardware solution. I highly recommend YubiKeys.

You can configure many major online accounts (not Coinbase yet) to require you to physically insert and activate your YubiKey as your 2FA authorization, eliminating the risk of a remotely compromised phone.

3. Use multiple emails with interlinked recovery options, and use completely different and robust passwords for those emails and other online accounts alike.

Luckily I did not have text messaging 2FA enabled on the email account associated with my Facebook profile; otherwise my attacker could have seized control of that as well. If they did, I have a chain of recovery emails I could have used to regain control of it, all with different passwords. This practice also means that having your password being captured or leaked for any one of your accounts won’t jeopardize all of them.

4. Stay vigilant, stay paranoid.

To quote the Onion Knight, “Safety is never a permanent state of affairs.” Don’t get lazy and begin recycling passwords or leaving funds on Coinbase or other third-party accounts. Be aware of the technology you are using and the tradeoffs you are making or exposure you are generating by doing so. Stay up to date on the latest breaches, exploits and technology. Opt to use end-to-end encrypted messaging services like Signal, Telegram or WhatsApp. Don’t answer calls from strange phone numbers, and use apps like Hiya to filter out known spam numbers to reduce the risk that you do. Ultimately, however, there is no easy fix for security and no list that can guarantee you won’t get hacked.

Make no mistake, there are individuals out there who want to harm you and are actively working to do so. The time needed to reasonably secure yourself can seem tedious and time-consuming up front, but can easily and quickly become a priceless investment as I and many others have learned firsthand. 

This guest post by Ariel Deschapell was originally published on Medium and is reproduced here under a Creative Commons License. The views expressed do not necessarily reflect those of BTC Media or Bitcoin Magazine.

The post Op Ed: Lessons From a Cryptocurrency Hack (A Public Service Announcement) appeared first on Bitcoin Magazine.

Posted on 21 September 2017 | 5:13 pm

Former CFTC Commissioner: Regulation Would Solve Bitcoin Volatility

Former Commodity Futures Trading Commission head Bart Chilton wrote that bitcoin's volatility indicates artificial inflation of its price.

Posted on 21 September 2017 | 4:20 pm

US government sues over alleged bitcoin Ponzi scheme - CNNMoney


CNNMoney

US government sues over alleged bitcoin Ponzi scheme
CNNMoney
The CFTC, an independent agency that monitors U.S. derivatives markets, claims that Nicholas Gelfman of Brooklyn, New York and his fund Gelfman Blueprint, Inc., which primarily invests in bitcoin, "fraudulently solicited more than $600,000 from ...
A trader is being accused of running a bitcoin Ponzi schemeBusiness Insider
CFTC files civil charges over alleged Bitcoin Ponzi schemeReuters

all 7 news articles »

Posted on 21 September 2017 | 3:34 pm

Op Ed: How Blockchain Technology Could Save Struggling Artists Around the World

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To a complete outsider, the worlds of art and cryptocurrency do not appear to be linked. But for content creators of all kinds, blockchain technology provides an ideal solution to preserve intellectual property, create demand and increase value for digital content.

The digital revolution is often blamed for making life harder than ever for artists. We are always hearing stories of artists realizing their work has been ripped off by a major brand or that they are not being paid or credited for the content they create.

However, thanks to blockchains, ownership rights can be restored in favor of artists. The very digital landscape that proves so difficult for artists could well increase the possibility of profits for artists online.

Physical art was one of the first big applications of blockchain technology.

The concept of integrating blockchain technology into the art industry is not untested. Blockchains have already been a part of the physical art world for a few years now as a reliable way to verify creation and ownership details. The application of a trustworthy system of verification like the blockchain to artworks makes perfect sense.

A number of companies are actually already authenticating artwork with blockchain technology, including Verisart in Los Angeles, Tagsmart in London and Ascribe in Berlin. For both collectors and artists, they provide digital certificates of authenticity and provenance records that enable buyers to verify the authenticity of the artwork they purchase while creating an accredited ownership history for the artwork over time.  

What blockchain technology provides is its unmodifiable digital ledger which logs every single digital transaction. More importantly, this ledger is public so everyone can see its history. This means, for example, that you can see that the painting you are interested in has been purchased three times from buyers in London, Madrid and Milan. Because the log is decentralized and cannot be edited, there is no potential for lies or trickery — no one can sell you a fake copy if a digital record of the authentic piece exists.

By allowing records like provenance, authorship and ownership to be unmodifiable, blockchain technology potentially solves the issue of forgeries and thefts in the art world. According to the FBI, billions of dollars worth of art and cultural property go missing every year. Being able to prove and track the ownership of artwork could make it almost impossible to resell stolen artwork in the future.

By increasing trust in the art world, blockchain technology could also help increase the value of art. One important factor in art is scarcity — it is what drives demand. People covet beautiful things: the more unique, the better. The Mona Lisa wouldn’t likely be worth $2 billion if there were 10 originals on the market.

Blockchain technology may pave the way for a robust new market of digital art.

It is no secret that life for digital artists can be difficult. In the music world, for example, physical sales are almost non-existent. Artists earn less than a cent from each time their music is played. At Spotify, the average payout for a stream to labels and publishers is between $0.006 and $0.0084. By the time the label has taken its share, artists receive an estimated $0.001128.

The digital art and design world is arguably just as bad — or worse. While individuals can easily download a music file from a file-sharing website, it is even easier to screenshot or share digital art without any attribution or financial benefit for the artist. As long as people don’t consider digital assets “objects,” digital artists won’t be paid what their work is worth. However, being able to certify the ownership of digital assets through the blockchain could assure the value of digital art and change the behavior that it is okay to swipe art from the web without a thought. People already consume all kinds of creative content on digital screens, be it books, movies, media, or music. The time has come for them to value digital art they can appreciate just as thoroughly on their devices.

A new generation of blockchain-based art collections is bringing the digital art and cryptocurrency worlds together.

For many people, a painting on the wall is worth money; but a digital work of art online has no financial value. A new business model, however, is now emerging for digital art that could alter this perspective.

CryptoPunks by Larva Labs is one known example. The company has created 10,000 computer-generated digital characters, each one unique, with proof of ownership stored on the Ethereum blockchain. Each one is owned by a single person and verified by a smart contract. As the blockchain data is public, you can see exactly which of the characters have been purchased and which remain available. Some people have spent 10 ETH (around $3,000) on the rarest types of CryptoPunks on the secondary market.

Another example is the selling of “Rare Pepes,” crude depictions of the meme often used online as an alt-right symbol. Meme artists previously tried to watermark their memes; nevertheless, they continued to be downloaded and shared. The solution was to use the Counterparty platform, which allows users to make anything into a unique digital token. Now the Pepes can be bought and sold — the rarest costing $11,589 — with RarePepeWallet.com.

This is just the tip of the creative iceberg. Imagine the possibilities with digital art created by actual artists becoming desirable and more valuable. In addition, artists who otherwise would have been forced to use a large-scale centralized company to distribute their work are now able to distribute their work in a decentralized way and receive fair compensation.

Soon, people may begin collecting digital art in the very same way they collect it in its physical form. This may also require a cultural shift in the perception of digital art and its value, but this cultural shift could well be instigated by applying technology, thereby adding financial value and scarcity to digital art. This may well turn out to be a significant boon in the lives of artists all over the world who will be able to profit and take control of their creative output and their intellectual property in a dynamic, budding market.


The post Op Ed: How Blockchain Technology Could Save Struggling Artists Around the World appeared first on Bitcoin Magazine.

Posted on 21 September 2017 | 2:54 pm

Op Ed: Four Challenges to Consider When Launching Your Fund Raise on the Blockchain

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ICOs (Initial Coin Offerings) or token sales have seen a dramatic increase over the past year as a method for raising capital. According to CoinMarketCap, Bitcoin market capitalization sits at around $70 billion at the time of writing (even after the China ICO market correction), up from $11 billion in June 2016. Overall, the cryptocurrency market cap is now over $150 billion, roughly the size of Algeria or Iraq’s GDP.

Many organizations have, therefore, become interested in using token sales (aka ICOs and token generation events) as a way of raising capital. Mostly, companies look at token sales as a way to raise startup capital; they issue “utility tokens” to avoid being classified as a security. This method is in line with traditional “crowdfunding” that companies have been doing for many years.

I also believe there is a lot of pent up demand from traditional asset classes and established companies to utilize the blockchain to raise capital and conduct their business. This is because there are a many benefits for both the issuer and the investor.

For the issuer, it’s a frictionless process of raising capital that opens up a global market of potential investors. Costs of raising capital via this process can be a fraction of what it may cost to address the same size market with a traditional raise.

For the investor, it provides access to a wider range of investment opportunities, which a regular person may never otherwise have access to. Typically, there are zero or very low investment minimums, and one can easily participate in a token sale anywhere on the globe — just set up a wallet, buy some bitcoin or ether, and get in on time. As a bonus, there’s also often the existence of a secondary market where tokens can be traded after the initial token sale, thus providing fast liquidity to those that desire it.

However, the process is not without its challenges, and there are several things to consider when launching your next fund offering on the blockchain.

What are traditional asset classes and why may a blockchain be of benefit to them?

Traditional asset classes are those that generally come up when people talk about investments. They include stocks, commodities, real estate, private equity funds and derivatives, VC funds, REITs and others.

Most, if not all, traditional assets would fall under the SEC’s definition of a security, as stipulated by the Howey test. However, due to the decentralized nature of blockchains, the U.S. is not the only jurisdiction where tokens can be sold from; many countries around the world such as Switzerland, Cayman Islands, Estonia and others are stepping up to welcome ICOs, be they utilities or a securities.

So, how is blockchain technology and tokenization beneficial to traditional asset classes? Consider this example based on the logic illustrated by Stephen McKeon. If we take real estate as an example, it’s estimated that the size of commercial real estate in the U.S. alone is about $11 trillion. Let’s say 10 percent of that can be tokenized; that immediately puts over $1 trillion of liquidity back into the marketplace and removes an “illiquidity premium” which issuers are forced to pay because investors have no way to exit their investment for a number of years. This is a win-win for both the issuer and the investor.

Challenge #1 – Jurisdiction

Even if one decides to tokenize an existing asset, there are several challenges that must be addressed, and finding the right home for your fund is key.  Since most traditional assets may be considered a security, finding the right jurisdiction will be very important during and immediately following your token generating event. Let’s take a look at some of the options available to us today.

The State of Delaware has a newly invoked law that will allow businesses to maintain shareholder lists and other corporate records on the blockchain. This move is even more significant when you consider that this jurisdiction is the corporate domicile capital of America, with 66% of Fortune 500 companies calling it home. If your plan is to make token holders Limited Partners or equity holders of your new fund, this may be a reasonable option.

Also in the U.S., Regulation A, Regulation A+ and Regulation D contain rules that could exempt entities selling securities from registering with the SEC, including a specific look at equity crowdfunding. These rules can be applied to any crowd sale, and potentially encompass token sales as well. It’s also possible to raise under Regulation S, which would exclude U.S. investors altogether, thereby removing the need for protection of unaccredited investors.

Switzerland, one of the leading centers of capital in Europe and known for recently abolishing its banking secrecy laws, has become a fintech hub and is considered a friendly jurisdiction. A number of leading Swiss companies have formed an alliance called Crypto Valley, where one of the most prominent law firms, MME, hosted a recent conversation about the legalities of token sales and what may constitute a security under Swiss law.

The Cayman Islands, a leading offshore jurisdiction with a 0 percent tax rate for foreign-controlled companies, have seen an uptick in ICOs lately. Recent token sales events from the Caymans include EOS, Domain Developers Fund and others. The Cayman Islands and other offshore jurisdictions have taken a friendly view on blockchain assets and have the service provider infrastructure in place, with lots of experience creating and operating traditional funds. I believe incorporating in the Caymans and other offshore jurisdictions have many benefits and is a practice that will continue to increase.

Estonia is another interesting example of a jurisdiction where several ICOs — which would almost certainly be considered securities in the U.S. — have been domiciled. Recently, Agrello, Polybius and a number of other companies completed successful token sales. Estonia is unique because of its e-government initiatives, which encompass e-citizenship, e-voting, e-tax and government blockchains. Further, Estonia recently announced its own cryptocurrency called Estcoin. Estonia currently doesn’t regulate crowdfunding (though some EU laws may apply) and is one of the top friendly jurisdictions for launching tokenized funds.

Challenge #2 – Knowing Your Customer

Another roadblock to conducting legal and compliant token sales is the issuer’s ability to follow KYC and AML regulations effectively. KYC (Know Your Customer) is the method in which issuers verify the identity of its investors. Many cryptocurrencies of choice for token generation events have anonymity features built in (cryptocurrencies such as Monero and Zcash are prime examples, and bitcoin can be anonymized as well). Further, the crypto investment community likes the idea of not having to go through lengthy and intrusive KYC processes. This practice doesn’t bode well for the issuer, however, since KYC is a key requirement for many banks. Strong KYC during the token generating event will make it easier to work with banks and follow AML (Anti Money Laundering) regulations.

Challenge #3 – Tax, Compliance and Custody

There are further complications with taxes, compliance and custody. There are not yet clear standards for cryptocurrency compliance to be followed. Further, if your fund is going to be holding crypto-assets and cryptocurrencies, security and custody needs to be considered. Luckily, there are some players such as Gemini that offer crypto-custody services; some reputable banks such as the Swiss Falcon Private Bank are also starting to offer bank-level cryptocurrency trading services. There are still more challenges around custody and compliance for altcoins.

On the tax side, there are open questions about treatment of virtual currencies. IRS guidance 2014-12 classifies cryptocurrencies as an asset class, imposing capital gains taxes on profits in certain situations. Some other countries such as Vietnam have proposed making digital currencies like bitcoin a form of currency. The world tax authorities still need more time to figure out how to tax this new asset class.

Challenge #4 – What Happens Next?

Once you’ve jumped through a lot of hoops and successfully executed a tokenization event for your fund, the real work starts. If you accepted U.S. investors, think about how you can prevent them from selling your tokens in the first 12 months (if you raised under Regulation D). If you didn’t accept U.S. investors, how do you prevent them from buying your tokens in the future? What exchanges do you want to list on to make sure you can comply with AML and other regulations? This is a complex process that needs to be thought of before you start planning your token generation event.

Looking to the Past

Launching a tokenized fund on the blockchain is a relatively new concept; however, we have some successful precedents. The biggest and most interesting example is Blockchain Capital, founded by Brock Pierce. Their token, BCAP, was sold under Regulation D exemption to 99 accredited U.S. investors (and unlimited foreign investors with many exceptions), who, per SEC regulation, can’t sell their tokens for 12 months. Blockchain Capital has a complex structure, with entities in Singapore, the Cayman Islands and the U.S. According to their memorandum, they spent up to 10 percent of their raise on legal expenses (they raised $10 million), which is a hefty sum. Also, questions remain: What prevents non-accredited U.S. investors from buying BCAP tokens post ICO? How are the 99 accredited investors forced to comply with the requirement to hold these tokens for the time allotted?

Conclusion

Launching token generation events for your fund can be a worthwhile activity, but you need to plan carefully and entrust your process to qualified professionals.

Some things to think about before going ahead with launching a tokenized fund:

  • Is your token a security (Howey test)?

  • Have you chosen the right jurisdiction?

  • Do you comply with the applicable regulations, including KYC and AML?

  • What are tax and custody implications for your cryptocurrency?

  • What happens after the token sale is over?



The post Op Ed: Four Challenges to Consider When Launching Your Fund Raise on the Blockchain appeared first on Bitcoin Magazine.

Posted on 21 September 2017 | 2:48 pm

Nebraska Lawyers Accept Bitcoin Following Ethics Board Approval - CoinDesk


CoinDesk

Nebraska Lawyers Accept Bitcoin Following Ethics Board Approval
CoinDesk
As CoinDesk previously reported, the Nebraska Lawyers' Advisory Committee was asked if lawyers could accept bitcoin from either a client directly or through a third party. That request also queried whether lawyers can hold cryptocurrencies in escrow or ...

Posted on 21 September 2017 | 2:31 pm

Why Real Estate Industries in Miami and UAE are Embracing Bitcoin - CoinTelegraph


CoinTelegraph

Why Real Estate Industries in Miami and UAE are Embracing Bitcoin
CoinTelegraph
The Miami real estate industry is gradually embracing Bitcoin as realtors realize the merits and advantages of utilizing the Bitcoin network to facilitate the transfer of large-scale transactions. For many years, the Bitcoin community and experts ...

Posted on 21 September 2017 | 1:49 pm

Why Bitcoin Could Split Into Three in November: QuickTake Q&A - Bloomberg


Bloomberg

Why Bitcoin Could Split Into Three in November: QuickTake Q&A
Bloomberg
Bitcoin has become so successful that the way it operates needs upgrading, and fast. Trouble is, there are opposing views on how to do that and no all-powerful administrative body to determine which method to adopt. After all, part of bitcoin's allure ...
McAfee at Shape The Future; “Pandora's box has been opened”Bitcoin News (press release)
Bitcoin is likely to split again in NovemberBangkok Post

all 26 news articles »

Posted on 21 September 2017 | 12:33 pm

Zcash Audit Finds No Serious Issues in Launch Ceremony Security

A new audit of the complex and controversial zcash key generation ceremony has found any serious security compromises were unlikely.

Posted on 21 September 2017 | 12:10 pm

Here's how bitcoin can reward you! - Economic Times


Economic Times

Here's how bitcoin can reward you!
Economic Times
“In spite of China's recent steps, Bitcoin has shown that it is a truly global asset and individual countries are not having influence over its price and sentiment,” said Sandeep Goenka, Co-founder, Zebpay. “We are optimistic that the government will ...

Posted on 21 September 2017 | 11:40 am

Gold Investor John Hathaway: Cryptocurrencies Are 'Garbage'

A notable asset manager who focuses primarily on gold had a harsh word for the cryptocurrency market craze this week: "garbage."

Posted on 21 September 2017 | 11:15 am

Bitcoin is sinking - Business Insider


Business Insider

Bitcoin is sinking
Business Insider
Reports last week that Chinese regulators would require exchanges to voluntary shut bitcoin trading triggered a sell-off of nearly $1,000, bringing the price of the cryptocurrency below $3,000 for the first time in over a month. Within hours, however ...
Weak Demand? Bitcoin's Price Rebound May Be Starting to FadeCoinDesk
Despite China Fears, Year's Good Bitcoin News Outweighs the BadCoinTelegraph
When 95% of all cryptocurrencies are gone Bitcoin will still be thereTNW
USA TODAY -CryptoCoinsNews -Express.co.uk
all 45 news articles »

Posted on 21 September 2017 | 11:00 am

Germany's Central Bank: Consumers Won't Use Blockchain for Payments

Germany's central bank has published a new blockchain research paper.

Posted on 21 September 2017 | 9:00 am

Weak Demand? Bitcoin's Price Rebound May Be Starting to Fade

The rebound in bitcoin's price from the recent low of $2,980 has stalled, raising doubts as to whether the rally will continue.

Posted on 21 September 2017 | 8:00 am

Urbit Is Moving Its Virtual Server Galaxy Over to Ethereum

Urbit, the galactically inspired network of cloud servers, has announced plans to rebuild its infrastructure based on ethereum tech.

Posted on 21 September 2017 | 7:00 am

Advertise with Anonymous Ads

How bitcoin could overcome its wild reputation - CNBC


CNBC

How bitcoin could overcome its wild reputation
CNBC
A major problem for bitcoin is its extreme volatility, which is a cause of concern for many investors. A lack of liquidity may be to blame for the cryptocurrency's volatile nature, an expert tells CNBC. "The high volatility I think is due to the low ...

Posted on 21 September 2017 | 5:52 am

Australia Cites Blockchain In 'Digital Economy' Strategy Launch

Australia is plotting an ambitious new Digital Economy initiative and blockchain is part of the plan, a new paper reveals.

Posted on 21 September 2017 | 5:00 am

CFTC Chair Giancarlo: Embracing Blockchain Is in the 'National Interest'

J. Christopher Giancarlo, CFTC chair, has called on government agencies to embrace blockchain, saying it's in the national interest to do so.

Posted on 21 September 2017 | 4:00 am

The European Union Wants to Beef Up Penalties for Cryptocurrency Crimes

The EU is eyeing beefed-up penalties around crimes involving cryptocurrencies, such as ransomware, the European Commission said this week.

Posted on 21 September 2017 | 3:00 am

Searching for Problems? James Altucher to Bitcoin Critics: You're Dead Wrong

Business blogger James Altucher provides a counter to cryptocurrency being "a solution in search of a problem," one strong enough to make him a bull.

Posted on 21 September 2017 | 2:00 am

Joint Report by Stellar and Luxembourg Fintech Platform: Approach ICOs with Caution

Joint Report by Stellar and Luxembourg Fintech Platform: Approach ICOs with Caution

 Stellar, a nonprofit decentralized financial network, and the Luxembourg House of Financial Technology (LHoFT), the country’s dedicated fintech platform, have published a joint report on Initial Coin Offerings (ICOs).

According to the report, organizations have raised over $1.8 billion through ICOs since January 2017. As this popular new fundraising method provides a simple and fast method to acquire serious funding, there has been “tremendous momentum” growing around ICO launches among new businesses in the blockchain industry, the report said.

On the other hand, the report also detailed that there are high risks associated with ICO investments. Since there is still a lack of regulation and control surrounding the industry, Stellar and LHoFT compared the current ICO sphere to the “Wild West” — a term that has become rather popular of late in reference to ICOs.

“ICOs raise issues for consumer protection, combating money laundering, and other regulatory compliance goals. Complications may arise from several sources, including the mechanism through which ICOs are conducted, the teams spearheading ICOs, the identities of contributors to ICOs, the quantity of money that is raised, the validity of ICOs’ technology and processes, marketing claims, and the impact that ICOs have on the greater cryptocurrency markets. All these factors must be scrutinized so that the heralded benefits of ICOs are balanced against market and legal risks as the model matures and gains broader acceptance,” the report states.

LHoFT and Stellar addressed both the upsides and the downsides of ICO fundraising. Organizations launching ICOs benefit from a built-in customer base, a committed group of customers that will stay with the product or service until it officially launches. Furthermore, according to the report, the fundraising method has positive effects on the network, can target global investors (or donors) in a non-discriminatory manner while providing a fast and easy fundraising mechanism. Additionally, retail investors are keen on participating in ICOs, and open-source projects can benefit from the fundraising method too.

Similarly, investors can benefit from the high liquidity of the tokens (sold during ICOs), in addition to being able to sell them through cryptocurrency exchanges or over-the-counter (OTC) transactions, which would allow the investors to transfer the tokens easily without the authorization of the token issuer (the organization launching the ICO).

Token holders are often offered bonuses, such as “gift cards” or “licenses” that will incentivize them to support the growth and the development of the project. ICO investors also benefit from the lack of “geo-lock” — they can invest in the project no matter the location (unless specified otherwise). Most importantly, ICOs have a high potential for big gains.

On the other hand, there are plenty of risks associated with ICOs, according to the report. Firstly, ICOs lack the formal process for auditing the organizations.The writers of the study highlighted a potential problem with smart contracts: If the contract is not programmed correctly, it could lead to unexpected transfers without the authorization of the token owner. Some tokens are not based on any fundamental value, thus, may facilitate bubbles and Ponzi schemes.

Furthermore, Stellar and LHoFT emphasized the issue of “investor education” — some investors are not informed well enough about an ICO project before investing in it. The report also detailed security problems, such as phishing scams and the loss of private keys, which can result in the investors losing their tokens.

As with most cryptocurrencies, tokens also tend to be volatile. According to the report, ICO cashouts may create price distortions on the market. Furthermore, the market can be subjected to manipulation, such as the “Whales” method, in which the token issuer organization holds back a percentage of the tokens and distributes them between the team members. Both investors and organizations can experience network lag during popular ICOs, while some token distribution mechanisms can cause unpredicted difficulties for both parties.

The lack of regulations within the ICO space presents various problems for both the investors and the organizations, such as being subject to the financial regulations of multiple jurisdictions. The anonymous nature of the cryptocurrency sphere can result in many of the investors being seen only as pseudonyms, which could cause issues for law enforcement and regulators. Since there is uncertainty about the taxation of tokens, both investors and organizations could face legal issues, such as tax evasion charges. Furthermore, the report discusses that there is an increasing concern that ICOs can be used by criminals for money laundering or terrorist financing purposes.

The post Joint Report by Stellar and Luxembourg Fintech Platform: Approach ICOs with Caution appeared first on Bitcoin Magazine.

Posted on 20 September 2017 | 12:35 pm

CFTC Commissioner: Blockchain Will Bring 'Sea Change' to Financial Markets

The CFTC has named one of its leaders as the new sponsor for its technical advisory committee – and he wants to see it work on blockchain issues.

Posted on 20 September 2017 | 12:30 pm

Banks Are 'Afraid' of Bitcoin, Says Wealth Advisor

This wealth advisor believes banks are afraid of bitcoin, according to a new interview.

Posted on 20 September 2017 | 11:30 am

Japanese Billionaire: ICOs 'Democratize Venture Financing'

Japanese billionaire Taizo Son believes ICOs will significantly impact how startups raise capital.

Posted on 20 September 2017 | 10:30 am

OmiseGo's ICO Token Is Tops in Market Cap, But Heavy On the Charts

A notable ICO token appears to be weathering regulatory concerns, bouncing back this week on a relatively positive newsflow and new developments.

Posted on 20 September 2017 | 9:35 am

Australia's Securities Watchdog Might Run Its Own Blockchain Nodes

Australia's securities markets regulator is weighing the use of blockchain as part of broader data strategy.

Posted on 20 September 2017 | 9:05 am

Decred Adds Atomic Swap Support for Exchange-Free Cryptocurrency Trading

Decred Adds Support for Atomic Swaps for Direct Cryptocurrency Trading Without Exchanges

Decred is announcing support for on-chain atomic swaps, which will allow cryptocurrency holders to trade directly, without having to rely on external exchanges. The cryptocurrencies initially supported are Decred (DCR), Bitcoin (BTC) and Litecoin (LTC).

“Support for on-chain atomic swaps is extremely useful,”Jake Yocom-Piatt, Decred Project Lead said in a statement. “Thanks to the foresight of the Lightning Network authors and developers, and the dedication of our own developers, it is our pleasure to deliver an important capability that has been discussed since the concept of cross-chain atomic transfers was proposed in 2013.”

Users can already begin performing exchanges between DCR, BTC and LTC using tools that the Decred developers have created. The tools are text-based at the moment, but will be integrated into the Decrediton GUI wallet in a future release.

According to the Decred team, this advancement disintermediates the exchange process, allowing for greater market fluency. It also delivers on the market desire for improved interoperability between currencies and the demand for new efficiencies that drive investor value.

"This is the first step in a progression toward high-utility, non-Turing complete smart contracts,” Yocom-Piatt told Bitcoin Magazine. “We look forward to a new generation of greater fluency between projects. It was a pleasure collaborating with the dev teams at Litecoin and Lighting Labs."

The concept of atomic swaps (or atomic cross-chain trading) were first described by Tier Nolan back in 2013. A previous Bitcoin Magazine article provides a step-by-step explanation of a simple example where two users agree to swap agreed amounts of BTC and LTC and use the multisig and time lock features available in both Bitcoin and Litecoin basic scripting to synchronize two transactions on two independent blockchains without having to trust each other.

Yesterday I did an on-chain atomic swap of 1.337 LTC for 2.4066 DCR w/ @_alyp_ of @decredproject. (See txns: https://t.co/BlxU1QBK2U) ⛓️⚛️💱🚀 https://t.co/wPqzdw40Gp

— Charlie Lee (@SatoshiLite) September 20, 2017

It’s worth noting that Lightning Network payment channels, now enabled by SegWit, make atomic swaps more powerful and easier to implement, and permit adding support for off-chain swaps.

“The addition of LN support allows for both on-chain and off-chain atomic swaps, meaning that trustless cross chain exchanges can occur,” noted Yocom-Piatt. “Since supporting LN does not break any existing functionality and only adds to Decred’s capabilities as a system of value storage and transmission, it is a very attractive target for addition to Decred.”

“On-chain atomic swaps are an important step towards enabling peer-to-peer cryptocurrency trading,” said Laolu Osuntokun, Lightning Network Daemon (LND) lead developer. “We are excited for this process to continue with off-chain atomic swaps over the Lightning Network in the near future. By taking this process off-chain, substantial latency and privacy improvements can occur.”

Decred (DCR) describes itself as “digital currency for the people,” completely independent, community funded and community owned. The project wants to build an open and progressive cryptocurrency with a system of community-based governance integrated into its blockchain,  including a hybrid consensus system to ensure that no group can control the flow of transactions or make changes to the currency without the input of the community.

“Decred is Bitcoin as it should have been,” noted crypto-investor Jon Creasy. “Bitcoin would be of the people, for the people. As great an idea as this was, however, Bitcoin soon became controlled by an ‘oligarchy,’ so to speak.”

It’s important to note that some countries, such as China, are attacking cryptocurrency exchanges as the weakest links in the crypto ecosystem. The Decred move shows that, at least for crypto-to-crypto trading (for example, exchanging bitcoin for litecoin), it’s perfectly possible to operate without exchanges. However, it doesn’t solve the problem of crypto-to-fiat and fiat-to-crypto trading, which is arguably of top concern for cryptocurrency users.

The post Decred Adds Atomic Swap Support for Exchange-Free Cryptocurrency Trading appeared first on Bitcoin Magazine.

Posted on 20 September 2017 | 8:14 am

China's IT Ministry Backs New Blockchain Research Lab

A Chinese government-backed IT research body has launched a new research lab in order to support the development of blockchain technology in China.

Posted on 20 September 2017 | 8:00 am

GoldMint and the Future of Gold Ownership

GoldMint Header

Reflecting gold’s historical repute as a scarce and valued resource, Bitcoin has become known in many investment circles as “digital gold.” With its unprecedented rise, Bitcoin’s worth is now estimated to be about twice that of an ounce of physical gold.

On August 7, 2017, the startup GoldMint was launched with the intent of ushering in a new digital era of gold as a store of value. This project aims to provide a unique set of gold ownership solutions for cryptocurrency investors and enthusiasts worldwide. It is holding an initial coin offering (ICO) that starts in less than 12 hours. 

The GoldMint project reaffirms the notion that physical gold is a respected method of payment and wealth preservation, all tied to its value and scarcity. Gold ownership, however, requires expensive security, safekeeping and insurance. GoldMint’s innovative approach seeks to address these inherent issues.

GoldMint purchases, sells and repurchases their native digital asset called

“GOLD,” which is 100 percent backed by physical gold. It features an Exchange Traded Fund (ETF) which can be utilized as a payment and investment tool for both companies and individuals in hedging risk.

Capitalizing off of the inherent advantages of its physical counterpart,

GOLD tokens offer a stable, transparent, non-volatile means of buffering one’s crypto portfolio from wild market swings. Here, GoldMint is committed to ensuring that GOLD delivers consistent value through paper assets like ETFs and futures as well as through physical assets. Moreover, GOLD owners will be able to use their tokens to secure guarantees, loans and escrow services, all at a modest 5 percent purchase and 3 percent sale fee.

GoldMint will also deliver a utility token known as “MNT” to facilitate operations, implement smart contracts and incentivize block creation and transaction confirmation.

During the early stages of this project, MNT will be sold and distributed on the Ethereum blockchain. After the MNT distribution has taken place, Goldmint will launch its own Graphene -based Proof-of-Stake (PoS) blockchain that offers a safer, more productive and faster experience.

Minting the Blockchain

GoldMint utilizes a blockchain ledger to execute trades, loans and investments for profit. The following are what make the GOLD crypto asset unique:

  • 100 percent information transparency relative to all GoldMint GOLD. The company discloses its gold reserves, fostering the opportunity to buy back GOLD at its current trading price.
  • GoldMint utilizes the decentralized blockchain for smart contracts and for its crypto assets.
  • ETFs are used for liquidity and elasticity facilitating gold trades which are far faster than those of physical gold.
  • Secured loans can be leveraged with GOLD, like jewelry or coins. GoldMint assists in the storage of this collateral through its unique Custody Bot, a blockchain-connected robot used for inspection, temporary and long-term storage and the transfer of physical gold, jewelry, coins or gold bullion.
  • Members have the ability to earn passive income as the market price of GOLD rises.
  • An option which allows for the buyback of GOLD for fiat according to the current price of GOLD.
  • A fast and efficient user registration and identification system.

To support merchants and developers, GoldMint is in the process of releasing an application programming interface (API) for the development of third-party apps and other interfaces. Use of this API will allow online stores to accept GOLD as a payment method, enable loans to be secured by banks and provide access to services such as escrow accounts and financial guarantees.

The Goldmint Team

Goldmint is led by CEO Dmitry Plutschevsky, who co-founded Lot-Zoloto — a gold trading company based in Russia with trading transactions totaling $100 million in 2017 — with former banker Konstantin Romanov. Serg Umansky, head of portfolio management at Whiteridge Investment Funds, Alex Butmanov, managing partner at DTI and Julian Zegelman, managing partner at Velton Zegelman, are among the advisors of the company

GoldMint founders predict that its unique value proposition will disrupt the billion-dollar gold market, allowing GoldMint to establish itself as a market leader in the coming cryptocurrency revolution.

To learn more about GoldMint and participate in its token sale, visit its website, read the white paper and follow the company’s social media channels on Facebook and Twitter.

The post GoldMint and the Future of Gold Ownership appeared first on Bitcoin Magazine.

Posted on 19 September 2017 | 3:51 pm

Uncertainty Dominates as China Continues to Clamp Down on Cryptocurrencies

Uncertainty Dominates as China Clamps Down on Cryptocurrency

China is clamping down on cryptocurrency, that much is clear. But while the developing story dominates headlines, a notable trend is the lack of official information. Chinese officials seem to systematically decline requests for comments, local sources are willing to provide information on condition of anonymity only, while leaked documents remain unverified.

Despite this lack of clarity, here’s what’s known so far.

Effects on Trading

The most important thing we know for sure is that Chinese bitcoin exchanges will be closing down, or at least exiting China.

BTCC — the oldest bitcoin exchange in the world — was the first exchange to announce they’d be closing shop within the Asian country, by the end of this month. The exchange cited guidelines published by the Chinese central bank (the People’s Bank of China; PBOC), which initially appeared to only affect ICOs, as its reason for closing down.

Other exchanges quickly followed BTCC's lead. ViaBTC and Yunbi both announced that they’d be ceasing operations by the end of this month. Huobi and OKCoin, the two other major Chinese exchanges, announced they would be shutting down too, though not until the end of October. And BitKan, a big over-the-counter (OTC) trading service rather than an order-book exchange, announced it would be shutting down as well.

While the cited guidelines initially did not seem to concern bitcoin, it is likely that Chinese officials have made it clear through separate channels that they do apply to the cryptocurrency. Bloomberg (among others) reports that exchange operators decided to close down after in-person meetings with PBOC officials, and the Wall Street Journal reports — based on anonymous sources — that the PBOC has prepared a set of “draft instructions” that would ban cryptocurrency trading altogether. These draft instructions have also been leaked (translation) but have so far not been verified for authenticity.

The content of the leaked documents is also consistent with warnings issued by a Chinese quasi-regulatory body — the National Internet Finance Association of China (NIFA) — regarding cryptocurrency trading, published shortly before exchanges announced that they would be shutting down.

According to the NIFA, Bitcoin exchanges lack “legal basis” to operate in the country. Additionally, NIFA official Li Lihui told a technology conference in Shanghai on Friday that a goal of China’s monetary regulation is to ensure that “the source and destination of every piece of money can be tracked.”

The Status of Bitcoin

As far as official statements go, Bitcoin itself is not banned in China. Owning, using, and — most importantly — mining bitcoin should technically not be affected by the published guidelines.

However, more unverified reports (translation) consistent with reporting from the Wall Street Journal, claim that Bitcoin itself will be blocked by the so-called “great firewall of China.” Specifically, seed addresses, which help to bootstrap any new Bitcoin node, and Bitcoin blocks, necessary to construct the blockchain, would be filtered from internet traffic into China, using deep packet inspection.

Additionally, major foreign Bitcoin exchanges like Coinbase, Bitfinex and LocalBitcoins would be added to the list of banned domains, which already includes sites like Google and Facebook. And even private trading of cryptocurrency arranged through chat-apps like Telegram and WeChat, for example, could fall under scrutiny, according to the Wall Street Journal.

This much stricter stance on Bitcoin, beyond just exchanges but also concerning Bitcoin itself, seem consistent with comments from PBOC Counselor Sheng Songcheng, as reported by local news sources like Shanghai Securities News. Songcheng was quoted to have said that Bitcoin poses a challenge to China, mentioning money laundering and its potential to curb the nation’s economic policy.

Furthermore, very recent reports indicate that cryptocurrency exchange operators are currently not allowed to leave Beijing. Local news outlet BJ News writes:

“[According to] a number of informed sources, the current special currency trading platform executives and so on are not allowed to leave Beijing, [in order] to cooperate with the investigation. In accordance with regulatory requirements, the trading platform shareholders, the actual controller, executives, financial executives [must] fully cooperate with the relevant work in the clean-up period in Beijing.” (Rough translation.)

What This Means…

Trading bitcoin via dedicated exchange platforms in China is off the table for now — that is clear.

But it’s not yet clear how successful a full Chinese Bitcoin blockade could be. It would technically only require a single Bitcoin block of a maximum of four megabytes to make it into China about once every 10 minutes, potentially even through satellite, for the entire country to be able to access the blockchain. As such, banning individual Chinese citizens from owning and using bitcoin might prove difficult, even if exchange platforms close down.

Perhaps an even more important question is what will happen to Bitcoin mining: It’s likely that most of Bitcoin’s hash power is currently situated in the Asian country. While miners should able to connect to the rest of the world, according to ViaBTC CEO Haipo Yang, it’s unclear if this connection will be allowed for much longer. If Chinese authorities indeed intend to ban Bitcoin from the country entirely, some Bitcoin mining operations — both mining pools and hash power data centers — will be easy targets to shut down.

On the other hand, this is not the first time that fears of China “banning Bitcoin” have been raised. In the past, such concerns have simply been a prelude to stricter regulations by local authorities.

It has been suggested by Bitmain CEO Jihan Wu, perhaps a bit optimistically, that exchanges will simply require a new license to continue operation. Similarly, it’s been speculated that the PBOC may introduce a national digital currency as a sort of gateway to cryptocurrency: This would allow the central bank to better track the flow of funds in and out of bitcoin in order to counter money laundering and capital flight.

Then again, it could make more sense to introduce such a national digital currency as a substitute for Bitcoin, once Bitcoin is effectively banned, as suggested by ZeroHedge.

For now, uncertainty prevails.

The post Uncertainty Dominates as China Continues to Clamp Down on Cryptocurrencies appeared first on Bitcoin Magazine.

Posted on 19 September 2017 | 2:40 pm

Snip and the Future of Distributed, Online Content

Snip Header/Footer

Over the years, the world of online content has become increasingly convoluted and disjointed.

The best articles get lost beneath an avalanche of biased pieces, clickbait and content that’s too lengthy to read. All of this adversely impacts the average person’s ability to access credible media outlets that allow them to remain informed in today’s ever-changing world.

In the digital age, the biggest issue confronting the news industry is verifiability. In other words, how can readers be certain that what they’re reading is true? Moreover, how do they know whether a particular media source is trustworthy?

The growing lack of credibility within the media industry became the impetus for Ran Reichman and Rani Horev to create a fresh alternative to today’s prevailing media model. Known as Snip, this innovative news site delivers short, to-the-point summaries of the day’s most important stories and events. Through the use of state-of-the-art machine learning algorithms, Snip allows readers to tap into targeted news feeds on topics customized around their interests.

“I founded Snip in May 2016 with machine learning and data science specialist Rani Horev, a co-graduate of the elite Talpiot program of the Israeli Defense Forces,” said Reichman. “Both Rani and I were frustrated by the low quality of news and how hard it was to find high-quality, interesting and brief content. Basically, there was a lot of long and good content and a lot of short and bad content, but almost no high-quality short content. We started Snip as a small Facebook page for friends and family and it gradually grew to more than 30,000 users and 1,400 paying subscribers.”

When asked for a basic overview of Snip’s value proposition, Reichman was succinct: “Snip is a news platform which keeps you updated on things that are happening in the world, personalized to you and in a short and concise format,” he said. “The headlines are anti-clickbait, allowing you to understand what the story is about before clicking on it and wasting your time. Snip quickly learns what you care about and provides you with stories on those topics, in addition to enlightening stories on other topics.”

The platform’s core model, Reichman said, is predicated on a distributed system where a worldwide collective of content generators curate short news submissions, or “snips,” that are then read by others on the site. Snips can be accessed in a number of different mediums, including audio and video, in addition to traditional, text-based posts. At its core, the site is censorship resistant — a characteristic generally viewed as a key element in the democratization of journalism.

In gathering and curating online content, site curators are incentivized and rewarded for their efforts. The Snip online community connects writers to readers directly, mitigating the risk of censorship and bias inherent in the legacy news industry.

This entire process is seamless, with end users able to take in their own collection of snippets which are personalized through machine learning algorithms. The ultimate goal is to ensure that users can have a quality site experience without needing to understand the intricacies of the distributed technology and cryptocurrency systems undergirding the site.

Writers can generate income from their efforts. Currently, those rewards are in the form of fiat currency with plans to transition to the site’s native cryptocurrency, SnipCoin, an ERC20 token secured by the Ethereum blockchain.

Readers will have the ability to utilize SnipCoin to purchase premium services such as ad-free news feeds, audio snips and customized written content. Additionally, advertisers will eventually be able to use SnipCoin to purchase ad space to increase their visibility on the platform.

SnipCoin distributions will begin in late September with the commencement of Snip’s token sale, where a total of 3 billion coins will eventually be released. The initial coin offering (ICO) is valued at $8 million. Upon completion of the ICO, the project will launch in a closed, invite-only alpha format for the purpose of testing critical features germane to the site such as comments, voting, customized news feeds and spam protections.

Reichman, for one, has strong opinions about ICOs, noting that project developers often launch ventures without any credible evidence of a functional product or service model. Snip, he added, transcends this as a result of already having tens of thousands of active users, as well as over a thousand paying subscribers.

This proven functionality, he said, should give “our ICO participant confidence that the Snip team will create a product people will actively engage with and enjoy.”

A New Era of Blockchain-Driven Content

Blockchain-based news delivery offers immense possibilities in terms of how news could be digested, whether on social media or mainstream media feeds. This nascent technological movement has the potential to decentralize control, remove third-party intermediaries from public news access, prevent censorship and promote bias-free content.

According to Reichman, Snip is uniquely positioned to capitalize on three major trends that are currently reshaping the media landscape:

Tokenization and Cryptocurrencies: Tokens allow companies to turn their users and contributors into real stakeholders of the ecosystem, making them ambassadors of the product. This is especially important in news, where distribution is a huge challenge.

Machine Learning: Snip uses machine learning to find the best content online, then offers it to writers and subsequently personalizes the content to users with additional machine learning technology.

The Rise of the Millennial Generation: As opposed to previous generations, millennials never got used to reading print newspapers and expect an online-first news outlet — ideally, one which is smart, interactive and to the point.

When asked about his greatest hope and vision for Snip over the next 12 to 18 months, Reichman laid out his thinking.

“Our vision for Snip is to become the go-to place for news, a household name which everyone can rely on for information on what's going on, and also to discover new and interesting topics of conversation,” he said. “In 18 months we aim to reach more than a million daily users.”

To learn more about Snip and its token sale this month, read the white paper, follow Snip on Twitter or contact the team via Telegram.

The post Snip and the Future of Distributed, Online Content appeared first on Bitcoin Magazine.

Posted on 19 September 2017 | 9:48 am

Bitcoin Exchange bitFlyer Hopes to Win Big With the Japanese Bankers Association

bitFlyer.jpg

While China tightens its grip on its cryptocurrency community, Japan is openly embracing cryptocurrencies and blockchain technology, legalizing bitcoin, and encouraging and funding blockchain research.

Even Japan’s banks are onboard, working collaboratively to develop a blockchain platform specifically for the financial sector. With its 120 member banks, the Japanese Bankers Association (JBA) is creating a Collaborative Blockchain Platform and is actively looking for a company to supply its blockchain technology on an ongoing basis.

Experimenting with the Collaborative Blockchain Platform, the JBA will initially determine which financial services best lend themselves to the new platform, likely including settlement/transfer services, know-your-customer (KYC) systems and financial infrastructure such as their Zengin System and Densai Net System.

Japanese bitcoin exchange bitFlyer is stepping up to the plate to take on tech giants including Fujitsu, Hitachi and NTT Data to be the supplier of the blockchain platform that will be used by Japan’s banks.

Although it is one of the largest cryptocurrency and blockchain startups in Japan, the Tokyo-based bitFlyer has its work cut out for it if it wants to upset these three corporate heavyweights and win the right to supply the bankers with a blockchain platform using its miyabi technology.

The company’s COO Bartek Ringwelski told Bitcoin Magazine:

“bitFlyer is the only startup in the event, and we have only raised $36mm since 2014, but we have deep expertise in blockchain technology through our virtual currency exchange (the largest in the world by volume, including margin trading) and our ‘miyabi’ product.”

By way of comparison, Hitachi posted $83 billion in revenue in 2016, Fujitsu posted $47 billion on 2015 and NTT Data posted $15 billion in 2016.

Acknowledging a sea change in Japan’s attitude to cryptocurrency, Ringwelski noted that Japan is actively encouraging and supporting both cryptocurrencies and blockchain technology:

“Japan is emerging as a leader in blockchain adoption. Japanese consumers are embracing virtual currencies, regulators are proactive, and banks are recognizing the power that blockchain, and specifically miyabi, can bring to the financial infrastructure.”

Miyabi Blockchain Technology

The name “miyabi” was first coined between the 9th to 12th centuries by Japanese aristocrats to refer to the theme of elegance and refinement.

According to Ringwelski, bitFlyer’s miyabi blockchain platform is the fastest in the world:

“Based on our research, ‘miyabi’ is the fastest enterprise-grade blockchain technology, delivering 1,500 - 2,000 transactions per second on average, and in some cases, even faster,” Ringwelski said.

Their processing speed of 1,500 to 2,000 transactions per second compares with Bitcoin’s two transactions per second and Ethereum’s seven transactions per second. They also estimate that among the other three competing companies, the maximum speed to beat is 1,000 transactions per second.

When it launched the competition, the JBA made it clear that security and immutability were their first priority. In their view, only a private, permissioned blockchain could satisfy this requirement.

Going Global

BitFlyer’s CEO Yuzo Kano has said he wants the company to go global in the near future and will start by expanding to the U.S. market this fall, initially offering bitcoin trading but expanding to other cryptocurrencies within the next year. The company says it has received approval to start trading from 34 U.S. states.

In the meantime, Ringwelski says that they are eagerly awaiting the decision of the JBA:

"The partner ultimately chosen by the JBA will stand to become part of the core Japanese banking infrastructure — it would be a big deal. Beyond the value of gaining the JBA as a new customer, securing a JBA contract would help spread miyabi to new enterprise blockchain applications and customers worldwide."

Investors in bitFlyer include SMBC Venture Capital, Mizuho Capital, Dai-ichi Life Insurance, Mitsubishi UFJ Capital, Mitsui Sumitomo Insurance Venture Capital, Recruit Strategic Partners, Dentsu Digital Holdings, SBI Investment, GMO Venture Partners, QUICK and Venture Labo Investment.

The post Bitcoin Exchange bitFlyer Hopes to Win Big With the Japanese Bankers Association appeared first on Bitcoin Magazine.

Posted on 18 September 2017 | 12:45 pm

Bitcoin reaches new all-time high: $ 3,000

Posted on 12 June 2017 | 1:06 am

Bitcoin Trading Bots

There have been a wide variety of situations in which algorithmic trading programs have proven to be beneficial for investors. However, investors who only trade a cryptocurrency can also take advantage of bitcoin trading bots. Through bitcoin bot trading, traders can become more flexible and prompt, minimize errors and process information more rapidly. At this… Read More »

Posted on 8 November 2016 | 6:20 pm

Steam accepts Bitcoin

Posted on 29 April 2016 | 1:09 am

Major Magazine Publisher to Accept Bitcoin Payments

Posted on 18 December 2014 | 12:43 pm

Microsoft accepts Bitcoin

Posted on 11 December 2014 | 5:06 am

Mozilla accepting Bitcoin

Posted on 20 November 2014 | 1:55 pm

PayPal and Virtual Currency

Posted on 23 September 2014 | 9:52 pm

Wikimedia Foundation Now Accepts Bitcoin

Posted on 30 July 2014 | 3:14 pm

German Newspaper "taz" accepts Bitcoin

Posted on 22 July 2014 | 1:32 pm

airBaltic - World’s First Airline To Accept Bitcoin

Posted on 22 July 2014 | 11:03 am

Expedia to accept Bitcoin payments for hotel bookings

Posted on 12 June 2014 | 12:41 pm

September 22, 2017 -
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