BLOCKCHAIN
NEWS
MAGAZINE APRIL 2018
Twitter is planning to Ban all CryptocurrencyRelated Ads
Ethereum Foundation Announces New Grants to Address Scalability
Q&A with Andreas AntonopoulOs: Bitcoin Roadmap
Nano: King Of Payment Focused Cryptocurrencies? Special poster inside
Stephen hawking's tribute
Bitshares, Everything On A Decentralized Financial Platform Bitnation's Pangea to Enable Peer-to-Peer Governance, Compete with Nation States
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EDITORIAL
At Crypto Core Media (CCMedia), our experienced team of writers, graphics experts, and executives, who are literally spread across all corners of the world, strive to bring you the most relevant crypto and blockchain related content. We believe in responsible, unbiased, objective, and investi-
gative journalism. To be able to deliver highquality content that meets these standards, we closely follow and report on the latest developments of legitimate cryptocurrency platforms. Additionally, we support and sponsor highly respectable and knowledgeable professionals in the crypto space such as Andreas Antonopoulos. As our faithful followers, supporters, and readers are aware, we publish the latest crypto news on our CryptoCoreMedia.com 4
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website. We even have a separate Cripto. uno website for Spanish language readers. Our team members also work diligently to prepare original, well-researched content for our monthly magazine. Following through on our continued commitment to present to you a carefully planned and visually appealing digital magazine, we are proud to publish what is arguably the best edition of our crypto magazine so far. This has been made possible because of a number of highly skilled writers that have recently joined our organization. In order to show our appreciation for their excellent work and make you feel more connected with the people who write the content you read, we will be publishing their impressive bios in our magazine every month.
So, what exactly happened in the month of March? Well, we think that it has been quite an eventful month for the world of Cryptocurrencies and Blockchain Technology. A number of significant developments have unfolded in the Cryptosphere. Notably, there have been quite a few traditional and mainstream organizations that have announced partnerships with large cryptocurrency companies. For instance, Barclays bank partnered with Coinbase to help facilitate and increase the adoption of cryptocurrencies in the United Kingdom. This is welcoming news for the crypto industry, because Coinbase has been issued an e-license by the UK Financial Conduct Authority, allowing them to legally operate in the UK and 23 other European countries. In order to make it easier for people to buy cryptocurrencies, Coinbase has also been allowed to open an official company bank account with Barclays bank. Now, people will be able to purchase cryptocurrencies using their bank accounts. Another positive sign for the crypto community was the release of the US Congress Report on March 13th, which dedicated an entire chapter just to cryptocurrencies and blockchain technoloigy. The report referred to 2017 as “the year of cryptocurrencies�, and noted that Bitcoin was the second most searched news item on Google. In the detailed report, the authors acknowledged the vast potential use cases of crypto-technology, particularly blockchain. Therefore, the official write-up strongly recommended that government
agencies carefully examine, study, and research this nascent technology, in order to use it to potentially streamline various routine government functions. While there are certainly many ways that crypto-technology can be used constructively, our team of researchers noticed that world leaders have increasingly begun to cite concerns about the use of digital currencies in illicit activities such as money laundering and even to finance terrorism. These issues were addressed during the G20 conference held in Argentina this past month. The finance ministers and central bank governors, at the G20, agreed to gather more information about cryptocurrencies and their global markets before attempting to regulate them. Presumably, this approach has been taken so that authorities can make well-informed decisions as they begin to develop a proper regulatory framework for cryptocurrencies. A number of world governments have said that they want to regulate crypto markets in a manner which would weed out the criminal elements, while not stifling innovation. At CCMedia, we believe it is important for crypto enthusiasts to be aware of these recent developments. So, we encourage you to read through our magazine for all the details and analysis, and provide us with feedback about what you found to be the most interesting. You can even let us know of anything you’d like us to include in the next edition of our magazine. Omar Faridi omar@coregroup.info
Core Magazine
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DIRECTORY Executive Board Vincent Pereira aka House house@coregroup.info Omar Faridi omar@coregroup.info
Futurist futurist@coregroup.info
Angelo Timoneri aka Lootz lootz@coregroup.info
Ignacio Figueroa aka TheWalk_er ignacio@coregroup.info
Elikem Kofi Attah elikem@coregroup.info Marlon Diaz aka MACO maco@coregroup.info Farrukh farrukh@coregroup.info Angel Figueroa angelfigueroa@coregroup.info Francisco Memoria franciscom@coregroup.info
Staff
Nuno Menezes nuno@coregroup.info Kadhir Velavan Ramasubramaniam kadhir@coregroup.info Waleed Iqbal waleed@coregroup.info Zachary Mashiach aka - Spacemarine zach@coregroup.info
@ccm_house https://plus.google.com/102527442008724559166?hl https://discord.gg/ADKFEqM https://www.pinterest.com.au/ccoremedia/ www.facebook.com/cryptocoremedia/ https://t.me/joinchat/FaE0dRAozOK3jSc7yG81Sg https://steemit.com/@cryptocoremedia https://www.reddit.com/user/houseofcore https://www.linkedin.com/company/crypto-core-pty-ltd/ https://plus.google.com/u/0/102527442008724559166
Table of Contents Stephen Hawking’s Greatest Achievement
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A Fleet Of Cryptocurrencies
14
Bitnation's Pangea to Enable Peer-to-Peer Governance, Compete with Nation States
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Wall Street Strategist’s Chart Sees Bitcoin Hit $91,000 by March 2020
19
Twitter is planning to Ban all Cryptocurrency-Related Ads
20
Ethereum Foundation Announces New Grants to Address Scalability
22
Nano: King Of Payment Focused Cryptocurrencies?
26
Japan to Persuade G20 for Crypto Anti-Money Laundering Push US Judge Rules Cryptocurrencies Are Commodities in CFTC Case
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OmiseGo: decentralized blockchain-based financial services 35 Putin sets Deadline for Russia to Adopt Crypto Legislation
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Coinbase Has Reportedly Been Losing Customer's Bitcoins
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Binance Offers $250,000 Bounty for Hackers Tip-Off
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Fujitsu Working To Mitigate Ethereum Smart Contract Bugs
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Bitcoin Private, Slow Start, Bright Future?
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Bitshares, Everything On A Decentralized Financial Platform
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EARTH Token Listing on Singapore-based CoinHub 39
Biography 62 Qarnot Unveils QC1 - A Crypto Heater
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Abra App To Use Smart Contracts on Litecoin’s Network
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Biography 72 Iceland Reports "Big Bitcoin Heist" Of 600 Powerful Mining Computers
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Petro Crypto Called A Fraud By Venezuela's Opposition Party
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GMO Reveals Bitcoin Mining Venture Raked in Millions, Plans to Become Major Industry Player
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Monero Cryptocurrency Platform, Privacy For Those Who Care
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John Oliver's Detailed Program on Crypto Gambling or Investing
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New Entrepreneur-only Hotel Lets You Pay with Cryptocurrency
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Malkhi, VMWare Researcher, Says Ethereum's Casper Is "Fundamentally Vulnerable"
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VERGE (XVG) | A True Privacy Coin? 97 Blockchain Technology For Telecom To Make Transactions More Efficient
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Billionaire Peter Thiel Is Betting on Bitcoin Becoming "Online Equivalent of Gold" 106 Seagal's Bitcoiin Marked For Death by Bureau of Securities
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KOMSCO Set To Introduce Blockchain-Based Payment Certification
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Australian Bureau of Meteorology Staff Investigated Over Illicit Crypto Mining Operation
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Populous (PPT), Invoice Financing On The Blockchain
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Grayscale Is Set To Launch Four New Cryptocurrency Funds
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SEC Subpoenas TechCrunch Founder’s $100 Million Crypto Fund
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China’s Central Bank Governor Warns Against Cryptocurrency Speculation
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Coincheck's Stolen NEM Tokens Traced to Crypto Exchanges in Canada, Japan
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Eco Coin, Developed By Uber Co-Founder, Has Ambitious Goals
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Monero Software Update Could Make Bitmain's ASIC Miner Useless
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VeChain: Blockchain Technology That Tracks & Authenticates Products
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Blockchain Startup PolySwarm Offers "First Decentralized Antivirus Martketplace"
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NEO Blockchain Failed, Then It Didn't. FUD or Fact?
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ICO Lists Actor Ryan Gosling as Graphic Designer Before Pulling Exit Scam
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Kazakhstan's Interest in Cryptocurrencies Grew 15-Fold, Yandex Study Reveals
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Amazon Customers Say "Yes" To Company's Own Cryptocurrency
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PayPal Submits Patent For Expediting Cryptocurrency Payments
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The Stratis Platform | Not Just A Bitcoin Copy Cat
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UK Secretary Diane Abbott Says Bitcoin Is a "Gigantic Ponzi Scheme"
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DDoS Attacks Include Ransom Notes Demanding Monero's XMR
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EthCC Reveals Slow Progress on Ethereum Privacy Projects
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KODAKCoin Backers Hint Token Trading Restriction
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Core Group Evangelizes Bitcoin Sponsorship
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Big Brands Prompted To Adapt To Blockchain Or Grow Irrelevant In "Crypto Boom"
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Japan to Persuade G20 for Crypto Anti-Money Laundering Push
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Bytecoin, The Father Of Privacy-Focused Cryptocurrencies
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Bitcoin Gold, Making Bitcoin Decentralized Again?
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C L A S S I F I E D S
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Exclusive
Stephen Hawking’s Greatest Achievement
A Great Loss
You know it’s a great loss when Core Media steps outside the cryptocurrency world to talk about Stephen Hawking. Stephen Hawking (19422018) is not the best physicist ever, or of our time, but he certainly needs no introduction. His story is undoubtedly an amazing one. It’s not just one of a genius mind impacting our world through great scientific discoveries. It is also a story of a man who kept going and doing despite the great 12
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limitations amyotrophic lateral sclerosis (ALS) placed on him. For most of his life, our beloved genius was unable to do much physically, but did not let that rob him of his chance to live life to the fullest. Consequently, we were not denied the great accomplishments he achieved. It is something to be grateful for and learn from.
What He Gave Us
It does not take knowing Stephen Hawking personally
to figure out that he was a genius. One clue is that he found his undergraduate studies a walk in the park. It is, however, the many achievements in his lustrous career that remove any doubts about him being a genius. That’s if there was any in the first place. In collaboration with other scholars, he produced pioneering work on singularities, physical properties of black holes and the Hawking radiation. He was also involved with work on cosmic inflation. There is the Hartle-Hawking state pro-
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posal. Here, James Hartle and Hawking suggest that there is no beginning to the Universe, because there was neither the concept of time nor defined confines of space. These are a few of the notable cases of Hawking getting us closer to answers to many unanswered questions about our Universe. With his international best selling book, “A brief history of time”, Hawking reached cosmology novices worldwide with various topics in the field of study. Being able to explain complex subjects to the layperson further proves his exceptional intelligence and deep understanding of his area of study. Other well-known books by him include “The Universe in a Nutshell”, “On The Shoulders of Giants”, “Black Holes and Baby Universes and Other Essays”. “George and The Blue Moon” is the most recent of novels written by Hawking and daughter Lucy Hawking for children. The important contributions to science did not go unnoticed or rewarded. Stephen Hawking has been awarded the Presidential medal of freedom by former U.S president Barack Obama. Also significant amongst his many awards are the Albert Einstein medal, the Pius XI gold medal for science
and the Order of the British Empire by the Queen herself. Also part of the long list of awards is the gold medal of the Royal Astronomical Society, the Paul Dirac medal from the Institute of Physics, the Wolf Prize, and the Russian special fundamental physics prize.
He Was Human Too
Going through his life history one would also notice that despite his genius, like all of us, he wasn’t perfect and didn’t always get things right. His performance in his early years in school was an average one. It is also mentioned in Ferguson’s “Stephen Hawking: His Life and Work” that Hawking realized that his knowledge in mathematics was not enough to for a doctoral student studying general relativity and cosmology. Yes, even geniuses can’t skip the learning part. Hawking also eventually conceded when Leonard Susskind argued against his proposal that black holes destroy information. This is not to take anything away from the great man. The point being made here is that Hawking was very brilliant but also human.
achievement was to keep living life and working on what he loved. Extraordinarily gifted people would always do what they do. They tend to excel in their chosen fields when they put in the necessary effort. On the other hand, there would always be something in our lives that makes it even more challenging. Hawking got an amazing mind and was unlucky to have a limiting factor as severe as ALS too. What he did with his life in spite of this, is what I consider true greatness. To not despair and give up but to keep striving and live life. Not all of us can be genius theoretical physicists. We might have limiting factors with varying degrees of severity in our lives as well. One thing we can all do is keep hope alive, keep our foot on the gas and press on. Don’t despair in the face of difficulties and simply never stop. Just like Stephen Hawking. Elikem Kofi Attah elikem@coregroup.info
Greatest Exploit
Having said all the above, I dare say that his greatest Core Magazine
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A Fleet Of Cryptocurrencies The Fleet
This month’s edition has overviews of a number of cryptocurrencies. As we put them together for you, we were wondering what the collective noun for cryptocurrencies should be. We settled on “fleet” since we all like to think of our favorite coins as spaceships bound for the moon. We are not selling you our spaceships, but you can take test rides by reading our articles on Nano, Bitshares, OmiseGO, Vechain, Stratis, Populous, and Bytecoin. Also included are informative articles on Bitcoin Gold and Bitcoin Private.
A Change of Mind
Like most people, I came into this space first by hearing about Bitcoin. After some 14
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time, I learned that there are other cryptocurrencies with other functions. I dismissed most of them without looking at what they had to offer. This was usually the case whenever I heard about a new altcoin until I came across chesscoin on my favorite website for playing chess. You see, I am an avid chess player too. As a result, I was immediately interested in this chesscoin. I quickly found out when it was created, who its developer was and if the project was not abandoned. Here, I was looking at a poorly promoted cryptocurrency created in 2016 with an okay wallet. I was wondering why I had not come across this earlier and why it hadn’t caught on already since there were millions of chess enthusiast worldwide. I
felt there were a lot of things this chesscoin could do for an e-sport like chess. For instance, chess players who already played chess online for fun could be willing to accept it as prize money if the coin became popular enough. Let me cut the story short because chesscoin is not in our fleet this month. This experience made me realize one thing. If I could be interested in a 1052nd ranked coin with small volumes on only two exchanges, surely other coins would be of interest and use to others. Since then, I never wrote off any cryptocurrency project without at least trying to understand it. There are different groups of people with different interest and different problems. It makes sense for there to be different crypto-
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currencies solving different problems.
Touching On the Featured Cryptocurrencies
Now, if you happen to run a business and think the charges you pay for the payment system you use are outrageous, Nano could excite you. Nano wants to give you fast transactions with no fees. Also, if you want to leverage blockchain technology to assist you with invoice financing, then you should check out our article on Populous. You might even be an entrepreneur or an investor in traditional companies. Some aspects of how companies are run could be frustrating for you. Should this be the case, you might want to take a look at Bitshares and its distributed autonomous companies For those who prefer to keep their business to themselves and themselves only, the Bytecoin article would be a good one to start with. Bytecoin, the father of most privacy-focused cryptocurrencies today, still has privacy as its main focus. In addition to that, you have two minute confirmation time for trans-
actions. Fast transactions can be had on Bytecoin too. There is also information on future developments to expect on this cryptocurrency.
even more relevant in the future. There is Bitcoin Gold and its plans to make Bitcoin decentralized again through decentralized mining.
Ethereum based OmiseGO talk about the blend of the traditional banking and blockchain technology to bring about an improved service for people already connected to the traditional financial system. The common saying is “bank the unbanked”, but OmiseGO wants to “unbank the banked.”
Lastly, we have Stratis. Its creators call it the blockchain as a service because of the different applications with different use cases that can be supported by the Stratis platform. You will find out more about Stratis and its smart contracts, side chains, and its programming school in this edition.
VeChain allows the creation of decentralized apps or dapps on its platform to help solve problems in various industries. For instance, their application of radio frequency identification (RFID) technology helps in determining the authenticity of high-end products. Blockchains are useful for this due to their feature of immutability and trustlessness. There is more of this and other applications of technologies in our VeChain article. What’s your take on crypto dividends? We also cover how the latest Bitcoin fork, Bitcoin Private, has fared so far and what could make it
They Are To Make You Aware Of Existing Projects
Again, the aim of these articles is not to get you to add them to your portfolio, but to simply inform you about what there are and what they do. We couldn’t have brought you all the cryptocurrencies at a go but we hope you enjoy learning about the ones we featured. Whether they are good projects or shitcoins is for you to decide for yourself. Either way, enjoy the Ride! Elikem Kofi Attah elikem@coregroup.info Core Magazine
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Bitnation's Pangea to Enable Peer-to-Peer Governance, Compete with Nation States
We’ve all felt the disruptive tremors Bitcoin and other cryptocurrencies continue to send cascading through the world of finance. We’ve also witnessed the frantic measures that many of the major Nation States of the world have taken in an effort to protect their central banks’ financial monopoly and control the procession of cryptocurrency into our financial infrastructure.
The Nation States have since the 1648 Treaty of Westphalia held a global monopoly on governance and thereby assisted the formation of monopolies in almost every other major sector of society. This model of governance ushers us into a sociopolitical framework according to where we are born. Through tyranny of the majority, we are then confronted with arbitrary
restrictions on our personal sovereignty and individuality of various magnitudes. The Nation States are social organisms unto themselves. In an environment lacking diversity and competition to generate variances upon which evolutionary forces can act, such a social organism will become stagnant and its constituents will
Blockchain News
be limited in manifesting their potential. The present Nation State monopoly is therefore incompatible with evolutionary principles and is inhibiting our biological, technological, and cultural evolution. The Nation State needs some competition. An increasing number of teams and projects are striving to bring forth this competition in various ways, but none are as comprehensive and methodical as Bitnation.
Enter Bitnation Pangea
Bitnation was conceived in 2014 and presently consists of over 100,000 lines of code drawing from an impressive array of decentralized technologies after more than three years of intensive design, research, testing, and development. Its core infrastructure is that of a smartphone chat-based poly18
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legal jurisdiction known as Pangea powered by an ERC20 Ethereum token, the Pangea Arbitration Token (PAT). The first service offered on Pangea allows users to create and join a Decentralized Borderless Voluntary Nation (DBVN). Each DBVN has its own Constitution and operates according to its own code of laws. Eventually, Pangea will facilitate the group and personal chats wherein users can write peer-to-peer smart contracts, resolve disputes and access additional governance services provided by thirdparty Dapps. PAT will be awarded when users and the nations they create fulfill agreements with one another, resolve disputes and otherwise provide quality governance services. Via this mechanism, both human and automated AI reputation and arbitration systems, as well as
arbitrator code of law registries, will incentivize contract compliance. As more governance services are added to Bitnation’s ecosystem and more people learn how to implement them into their lives and communities, the presence of competition in the market for governance will make the Nation States increasingly irrelevant and give way to an age of flourishing human potential. For more information on Bitnation and their upcoming token sale event starting March 25, please visit www. tse.bitnation.co and join the Bitnation Telegram channel. Jacob Cox
Blockchain News
Wall Street Strategist’s Chart Sees Bitcoin Hit $91,000 by March 2020
F
undstrat Global Advisors co-founder Tom Lee, the only Wall Street Strategist covering Bitcoin, recently created a chart that shows the flagship cryptocurrency surge to $91,000 by March 2020. The strategist, as covered by Core Media, has in the past stated that Bitcoin would hit $20,000 by mid-2018, and $25,000 by the end of the year. As reported by Forbes, Fundstrat and Tom Lee have compiled a database on Bitcoin that helps visualize the
cryptocurrency’s short-term and long-term trends. These include mining costs, trading trends, and technical analysis. Lee’s new graph shows that the other four times Bitcoin saw its price fall by 70 percent or more, it experienced significant gains. Notably, the chart has a logarithmic scale, which shows Bitcoin’s movements as less pronounced than they would be if it were charted on a linear basis. The chart essentially shows that once a bottom is formed, a bull run might ensure, one
that will carry bitcoin to a $91,000 high by March 2020. Fundstrat’s strategy, according to Forbes, is to focus on established digital currencies, which could see others fail in the long run. The fact that bitcoin has so far been able to bounce back from steep price drops doesn’t necessarily mean the same will keep on happening, the news outlet notes. The article reads:
“Just because a trend has occurred in the past (and looks very Core Magazine
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compelling on a chart) does not mean it will happen in the future.”
Technical indicators show Bitcoin is “a bit oversold”
Fundstrat further found that, upon analyzing Bitcoin’s technical indicators, they seem to show the cryptocurrency’s market is “a bit oversold.” The traditional RSI (Relative Strength Index) and the MACD (Moving Average Convergence/Divergence) were given as examples. However, Bitcoin’s price was somewhat low until 2017, meaning the RSI and MACD may not have enough data to be accurate, or as accurate as they would be if used in securities with longer track records. Tom Lee has also created the Bitcoin Misery Index (BMI). The indicator takes various factors into account, including negative press and amount of successful trades. If the index is low, it’s time to buy, as it is a contrarian indicator. It’s at its second lowest point in the past eight years. Francisco Memoria 20
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Twitter is planning to Ban all CryptocurrencyRelated Ads Twitter Putting An End To Cryptocurrencyrelated Ads
chose to ban them. Apart from cryptocurrency-related ads, Facebook and Google also banned binary options advertising.
O
The two internet giants agree that cryptocurrencybased ads can easily mislead investors and often facilitates fraud attempts. This, and pressure from the FBI and regulatory agencies seems to have influenced the Twitter’s decision.
n Sunday, March 18 Sky News reported that Twitter is preparing to ban all cryptocurrency-related advertising. The online news and social networking service has decided to ban crypto ads after both Facebook and Google
The social platform ban will not only apply to crypto-
Blockchain News
currency related ads but also includes ICOs, token sales, digital currency wallets and cryptocurrency trading support services. Notably, reports indicate that Twitter still hasn’t come forward to comment on the announcement, but the ban implementation is supposed to occur in about two weeks’ time. Notably, there might possibly be some limited exceptions, once the policy is released. From last year on, Twitter has experienced a dramatic increase of fake accounts that are used to advertise cryptocurrency businesses, giveaways, ICOs, and many other projects in the sector. These accounts are often used by individuals trying to impersonate wellknown members of the crypto world community such as Roger Ver.
Regulation On The Horizon The cryptocurrency industry is now going through a regulatory “crackdown”, which is having serious consequences on the development of the technology. Despite a recently released report by the Joint Economic Committee Congress of the
United States suggesting that the government should look closely into the potential of the blockchain technology, governments worldwide have heightened their scrutiny of the cryptocurrency sector. Regulation is coming its way and it may well become a real hindrance to the development of the industry itself. While governments are already looking closely into this technology, they are still looking to it with apprehension and seem to be weighing in more heavily on the cons. Moreover, to be able to find a proper regulatory framework that would perfectly suit the cryptocurrency industry, both the pros and cons needs to be considered. According to prestigious British News Agency, Mark Carney, the Bank of England’s Governor, warned that cryptocurrencies have a regulatory crackdown coming their way. He stated that, sooner or later, this day would come because there is a need to “regulate elements of the crypto-asset ecosystem to combat illicit activities”. He further noted that the consumers needed to be protected, and there was urgency in finding the suitable regulation for this new indus-
try. Carney said:
“There are a number of problems with cr yptocur rencies. They are small now but they are getting bigger. The Financial Policy Committee is looking at the risks to financial stability. There are issues for authorities who deal with money laundering, terrorist financing and price fixing. There have been a number of incidents of theft not just big crimes but also steady thefts from people’s wallets.” After Facebook in January and Google last week moving towards banning crypto ads, it is now Twitter’s turn to prohibit all cryptocurrencybased advertising. Following Google’s announcement, the markets reacted negatively. As for Twitter’s announcement, it doesn’t seem to have had the same impact. Nuno Menezes Core Magazine
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Ethereum Foundation Announces New Grants to Address Scalability 22
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E
thereum Foundation Extends Grants Program to Address Scalability
opened the program 2 months ago and already announced the recipients of its first wave of development grants.
The Ethereum Foundation recently announced it was extending a Grant program to support several developments on the Ethereum platform. The Ethereum Foundation
According to the Foundation, a total of 13 projects already received more than $2.5 million combined to work on scalability, security, development experiences, user interface study
and other derivatives of the Ethereum blockchain. Now, the non-profit is announcing the extension of the program. With this program, the nonprofit looks to further develop the platform’s capabilities. The Ethereum Foundation is a Swiss non-profit organization Core Magazine
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whose mission is to promote and support the Ethereum platform through base layer research, development and education. These efforts are directed at bringing decentralized protocols and tools to the world that empower developers to produce next-generation decentralized applications (Dapps). This is done to bring the international development community closer together to build a more globally accessible, more free and more trustworthy Internet. Furthermore, the Ethereum project aims to support useful Decentralized Applications (Dapps) and smart contracts on the Ethereum blockchain. In order to achieve this, the Ethereum Foundation seeks the best-in-class R&D, developer experience, and 24
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education. As so, the Foundation decided to open a Grant program to provide support to teams working hard at research & development and to support the entire ecosystem.
The Grants The Foundation believes these grants will be an incentive that will speed up development. The aim is to make Ethereum scalable, useful and secure. As such, although this grant program was announced two months ago as a strictly scalability-focused program, the Foundation decided to expand the support to projects that are doing successful work across scalability, usefulness and security. According to the Foundation,
these projects focus simply on building useful products and experiences on the Ethereum platform, but have no kind of support, meaning no ICOs, no token sales. and no way of getting financial support which can delay the development. The grants will act as a support mechanism for these projects. The non-profit is also looking to hire and fund from this pool of side projects. The Foundation further noted that many of these grants may be followed on with additional funding and/or collaboration when milestones are achieved. The Foundation explains that it plans to provide teams that win a grant with non-dilutive funding, technical advisory, connection to more users, and a platform to share the final work.
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As for the wish list, the Foundation is basically looking for developments in the areas of:
Ethereum Scalability
implementations, Alternate plasma implementations; Improving efficiency of existing clients such as geth & parity; and the creation of a tokenless “Lightning Network” for Ethereum.
with existing teams or on your own.
adoption. We would like to fund more design studies, hire, and connect talented Scalability can be in the designers with excit1. Scalability: Mainly devel- form of implementing sharding teams in the space.” opments on alternate sharding ing, plasma or state channels
2. Usefulness: UX design studies to improve private key management and transacting in Ethereum; development of alternative wallet/client designs; creation of tools that improve developer experience; designing improved documentation and developer/user education videos. 3. Security: Schedulee security audits for Solidity and Vyper; smart contract audits tools; development of tooling that prevents vulnerable code. 4. “Hackternships”: Developers can suggest a problem they want to solve and the Foundation is happy to fund a 10-week $10K externship for the spare-time working on Ethereum. Successful projects will be featured at a developer conference.
It can also be in the form of optimizing geth/parity or building alternate clients. Usefulness is for improving the developer experience (e.g. static analyzers, linters, dev frameworks, mobile SDKs, documentation, Solidity/Vyper development) or experimenting with new dapps that provide utility to the end user. Security can range from auditing existing contracts to providing tools that prevent error-prone programming patterns to contributing to alternative second-layer languages that focus on security.
By developing these financial support programs, the Foundation intends to provide Ethereum teams with more runway, advice and resources to focus simply on building useful products and experiences. Ethereum is built by the community and for the community, that is why this project will be an ongoing grant program and all the community is invited to participate. Nuno Menezes
The Foundation stated:
“We are also beginning to engage with the design community to help solve product and UX design problems. For example, key management, Ethereum payments UX and onboarding flows are all areas that need major improvement for mainstream Core Magazine
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Nano: King Of Payment Focused Cryptocurrencies? A Digital Currency For The World
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ano, formerly known as RaiBlocks, wants to be the cryptocurrency of choice when it comes to payments. Scratch that. Nano wants to be the main currency for payments in the real world. 26
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An ideal cryptocurrency for payments should have very low fees as well as fast and secure transactions. A lack of these features has made most cryptocurrencies unsuitable for payments. Nano claims that it has the technology that provides all these features.
How Nano Works
Every wallet on the Nano network comes with its own
blockchain. This structure is known as Block lattice and differs from blockchains. When it comes to validating transactions, the transactions on Nano are not lumped together in a pool to await confirmation. With Nano, senders and receivers of transactions are directly paired with each other. When a transaction is made, the sender creates a send (S)
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block while the receiver creates a receive (R) block. These blocks amend the blockchains of the parties involved in the transaction. Whiles the “S” block reduces the sender’s wallet balance by the transaction amount, the “R” block increases the receivers balance by the same amount. What we have here is transactions occurring separately from other transactions on the network and with-
out waiting for confirmation. As a result, transactions are almost instant and “fee-less”. Potential conflicts on the network are to be resolved by voting. Users are allowed to transfer their votes to representatives. The weight of a vote is based on the total amount of funds held in all accounts that have transferred their voting rights to a particular representative.
What About Scalability?
Most cryptocurrencies eventually have to grapple with handling more activity on their networks, as adoption grows. Failure to find solutions to this problem results in clogged networks, high fees, and painfully slow transactions. As stated earlier, Nano walCore Magazine
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lets have their own blockchains. These are known as accountchains. Now, the nodes on Nano can be trimmed to leave only current account-chain data. With less data, more transactions can be handled while maintaining the speed of transactions. Consequently, the remaining restrictions to Nano’s almost unlimited scalability are bandwidth and hardware.
Why The Network Is Not Being Spammed
You might be wondering how “fee-less” transactions would not lead to massive spamming on the Nano network. Spamming on Nano does not make economic sense even with no fees on transactions. Clients on the network are required to solve cryptographic puzzles before transactions can be sent. This dis-incentivizes potential spammers. Moreover, using computing power to solve puzzles for each spam transaction doesn’t achieve much and would not be without costs
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Value Transfer Only?
As already mentioned, Nano focuses on the transfer of value only and wants to be the best cryptocurrency doing it. At least this is the direction Colin LeMahieu, creator of Nano, plans to take it. The plan is to focus on value transfer and do it well. It is, therefore, unlikely that there will be smart contracts and other features on Nano anytime soon. LeMahieu, however, considers privacy important and sees the privacy feature as one that could be added to Nano if the technology is sound.
Community And Adoption
Nano has an active and growing community behind it. The Nano cryptocurrency subreddit has over 36,472 subscribers. The community can also boast of good membership on their Discord, Telegram, and Twitter. The cryptocurrency was also the Binance community coin for January 2018. This is quite a feat considering the fact that it’s barely a year old.
Having a large and active community backing a cryptocurrency is at least as important as the technology these days. Besides sound technology, more people talking about and using a coin would cause the general public to have more confidence in it. This confidence in a coin translates into more adoption. The re-branding of RaiBlocks to Nano is a step towards reaching out for mainstream adoption. According to LeMahieu, the team was looking for a name that is easy to say and remember. This means that there is focus on making the technology work, as well as getting more people to know about and use the coin.
Competition From Other Value Transfer Focused Cryptocurrencies
The introduction of the Lightning network on Bitcoin has caused many to question the future of other cryptocurrencies with focus on payments. Lightning is secured by Bitcoin’s hash rate. It also does
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not require huge marketing efforts since Bitcoin is already hugely popular. At the time of this writing, the number of Lightning nodes had reached 1878 with 4631 channels. The transactions on the Lightning network are also almost instant and come with very low fees. Litecoin is arguably the only other top cryptocurrency with payments as its main focus that is well known outside cryptocurrency circles. It currently has low fees and fast transactions as well. Nano competes favorably with its cryptocurrency competition when it comes to payments. It also beats traditional payment methods like VISA ias far as transaction costs are concerned. It, however, falls behind when it comes to network effect and adoption. Nano, at the moment, is not really known outside the cryptocurrency space and few vendors accept it. Nonetheless, this is understandable since Nano is relatively new.
Are There Any Downsides?
Issues with Nano are issues every new cryptocurrency faces. Some cryptocurrencies, after Bitcoin, have even been criticized for being centralized. They are also most vulnerable to attacks in the early stages. Notably, the ones that are not clones of Bitcoin and are built on different technology and are considered unproven technologies. Such problems can be expected to be of less and less significance as a coin, its community, and its transaction history grows. Currently, all eight nodes responsible for voting on the Nano network are under the control of the developers. This is, however, a temporary state of affairs. With a very low cost of running a node on the Nano network, it is expected that more users would set up nodes of their own in the future. According to LeMahieu, entities such as retailers who stand to benefit from the “fee-less” transactions would be motivated to run nodes.
codebase. This means there could be unrealized problems. Once again, this is a problem with all new technologies.
The Future
It’s hard to find fault with the technology behind Nano. Almost instantaneous transactions with no fees have been demonstrated. However, we will still have to wait till there are merchants accepting Nano worldwide before we call it a success. Before such a time, the technology would have to be tested and proven as sound. For now, we can agree that Nano has great potential. Elikem Kofi Attah elikem@coregroup.info
Another catch is that Nano’s technology is built on a new
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Blockchain News
Japan to Persuade G20 for Crypto Anti-Money Laundering Push
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WIFT, the interbank messaging platform, has made public results of its long-running proof-ofconcept DLT (distributed ledger technology) Bank Pilot project.
The Basic Idea behind the SWIFT DLT Bank Pilot Project The SWIFT trial relied upon Hyperledger Fabric, using the nostro accounts.
(Nostro accounts are the ones held by banks inside the banks). The basic idea was to focus on many-to-many bank transfers. The project analyzed the system’s ability to meet requirements relating to data privacy, security, and governance, while overseeing the nostro reconciliation process. Here is how SWIFT head of research, Damien Vanderveken, shared the system’s strengths and limits
in a statement on distributed technology:
“The DLT sandbox enabled us to control access, to define and enforce user privileges, to physically segregate confidential data and store it only with the relevant parties while supporting a strong identity framework by linking all participants to their BIC, and having all
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keys signed by a SWIFT institutions can execute such certification authority.” transactions while also complyFurther elaborating on the findings, Damien Vanderveken revealed that SWIFT could do a lot more things which were previously not possible. Similarly, he also added that there are some other aspects of DLT Bank Pilot Project that need to be worked on before every issue is sorted.
Limits of the DLT Bank Pilot Project Besides the ability to do “many-to-many” bank transfers, the DLT Bank Pilot Project could potentially leverage blockchain technology to overcome limitations of the transaction capacities. Also, the system would require the capacity to handle a lot more channels than actually demonstrated through proof-ofconcept. However, the project does point to the fact that banks can conduct real-time transactions with the use of a distributed ledger. Furthermore, these financial
ing with the reporting requirements.
Here is a pertinent statement from SWIFT: It enabled real-time ... transaction status updates, full audit trails, visibility of expected and available balances, real-time simplified account entries confirmation, the identification of pending entries and potential related issues, and generated the data required to support regulatory reporting.
Prerequisites before DLT Bank Pilot Project Goes Live There are prerequisites that need to be fulfilled before DLT Bank Project can come into use on a global scale. The statement does not include information on prerequisites for account servers for migrating real-time liquidity reporting & processing that need to be met before SWIFT can adopt the system.
Similarly, DLT technology will have to go through further advancements and developed more for supporting large global financial industry infrastructure. The statement points to DLT technology catering to a minimum of 10,000 channels while currently the study on Nostro relationships only included 528 channels in the study. The immediate next steps for DLT technology would be encouraging the financial institutions to start using real-time liquidity processing and reporting. Also, they would require development of a platform which complements the DLT technology’s capabilities. Farrukh
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US Judge Rules Cryptocurrencies Are Commodities in CFTC Case
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New York federal judge recently ruled that cryptocurrencies like Bitcoin are commodities, and that the Commodity Futures Trading Commission (CFTC) can regulate them. The ruling was made in a case the CFTC brought against a cryptocurrency business operator. Federal Judge Jack Weinstein ruled that “virtual currencies can be regulated by the CFTC as a commodity,” after
determining these fall into the definition of “commodity.” His decision was based on a similar determination the CFTC made back in 2015. In the order, the judge wrote:
common definition of ‘commodity’.” At issue was whether the CFTC could regulate cryptocurrencies, given the absence of federal rules, and whether the regulator could “exercise its jurisdiction over fraud that does not directly involve the sale of futures or derivative contracts.”
“Virtual currencies are ‘goods’ exchanged in a market for a uniform quality Following his ruling, and value. ... They fall well within the Weinstein entered a preCore Magazine
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SPECIAL ARTICLES
liminary injunction barring the cryptocurrency business operator, Patrick McDonnell, from transacting in cryptocurrencies. The cryptocurrency business, Coin Drop Markets, is also barred from making any cryptocurrency transactions. Regulators in the US have been debating how they should regulate cryptocurrencies. While the country’s Securities and exchange Commission (SEC) has taken action against initial coin offerings (ICOs), attempting to regulating them as securities, the CFTC approved bitcoin futures trading, treating cryptocurrencies as commodities.
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Coin Drop Markets’ case According to CNBC, the CFTC has said that McDonnel and his company, Coin Drop Markets, fraudulently offered customers cryptocurrency trading advice. Reportedly, customers paid for the advice, but never really received it. McDonnell claimed to be a cryptocurrency trading expert, and promised would-be investors what he claimed to be extremely profitable advice. Last year’s cryptocurrency craze, that saw Bitcoin hit an all-time high above $19,000, likely helped the business gain customers looking to make a profit.
After receiving various payments, the cryptocurrency business operator shut down its website, and stopped responding to all of its customers. Moreover, Coin Drop Markets was never registered with the CFTC. The case seems to be a classic exit scam. These scams are often used by startups after their ICOs. As covered by Core Media, one even used actor Ryan Gosling as its graphic designer, before it disappeared. Another paid freelancers to write the company’s name on their bodies to fake popularity. Francisco Memoria franciscom@coregroup.info
Blockchain News
OmiseGo: decentralized blockchain-based financial services
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miseGo (OMG) is a popular cr yptocurrency which was developed by Jun Hasegawa and Donnie Harinsut and released in 2017 via an initial coin offering (ICO) which raised over $25 million. The ICO was so hot that over $100 million in investment was turned down. As of this writing each coin is worth $14+, and with more than 102 million coins in circulation this yields a market cap of $1.5 billion (CoinMarketcap). This is the 22nd highest cryptocurrency market cap, and considering there are thousands of different cryptocurrencies this makes OMG one of the
most important and widely used cryptos in existence. OmiseGo directly integrates and runs on the Ethereum (ETH) blockchain. ETH is the most valuable and popular cryptocurrency behind Bitcoin, so there is a tremendous amount of mining power running and securing its blockchain. Thus OMG is extremely secure. Its network pioneers Plasma architecture, which is an Ethereum layer 2 scalability solution. The coin’s blockchain is proof of stake (POS), meaning you can earn coins via staking. To stake all you have to do is hold coins in your wallet and keep your wallet open on your
computer. If you do this your computer will help validate transactions, and as a reward you will periodically receive some fresh coin. The more coins you hold in your wallet the faster you earn coins. There is an exchange built-in to OmiseGo’s core consensus layer in order to provide financial services, and since the underlying technology is blockchain-based, this exchange and all of its associated financial services are completely decentralized. The OmiseGo motto is “Unbank the banked”, meaning it intends to provide a better platform than banks for Core Magazine
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Blockchain News
financial transactions. Specifically users on the network can trade digital assets, fiat currency, cryptocurrency, and there is also clearinghouse technology integrated into the network which provides a framework for creating business contracts among different parties. This decentralized clearinghouse is the first of its kind, since up to now financial clearinghouses have been centralized and therefore any business dealings within them can be manipulated, censored, and changed by those in charge of the clearinghouse. Also, transferring money via a decentralized network like OMG is much faster and safer than using a centralized platform like the modern day banking system. Banks can freeze transactions and hold money at will, which can disrupt business and destroy your financial health, and even if that doesn’t happen it often takes days or even weeks for a transaction to be completed. The decentralized OMG network gives you peace of mind in your business dealings, since its not possible for your money to be frozen midtransaction, and transactions are completed nearly instantly. The plasma architecture allows 36
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for millions if not billions of transactions per second, many orders of magnitude more transactions per second than what is possible on the Bitcoin network (~10 transactions per second). The creators of OMG are working with several major financial and technology companies, including SBI investment, SMDV, Sumitomo Mitsui Banking Corporation (SMBC), Golden Gate Ventures, Ascend Capital, East Ventures, Krungsri Finnovate (a bank based in Hong Kong), and 500 startups in order to drive adoption of the platform globally. As use of its decentralized financial services increases, so will the value of the coin. In July 2017 the coin had a value near $0.50, and its price rose to a peak of $26 in mid-January 2018, a spectacular 5000+% increase. Clearly those who purchased and staked the coin early made lots of money. There has been quite a bit of volatility in the price of this crypto, after hitting its peak value in mid-January it dropped all the way to $9 in early February, before rising again to $21 at the end of February. This is indicative of speculator driven “pump and dumps”, which is
a common phenomenon on cryptocurrency markets. In the long-term I expect OMG to rise significantly in value since the technology used on its platform is cutting-edge, and will provide a backbone to many businesses and organizations looking to decentralize and accelerate their monetary transactions. In this world of rapidly increasing government regulation, OmiseGo is a breath of fresh air in the financial world, and will increase the freedom of its users. Banks often stifle and destroy new businesses under the instruction of the government; those who use OmiseGo for their financial services don’t have to worry about that and can grow their business without limit. This is not advice. Advice should be accepted by your chosen legal counsel only and financial advice should come from a licensed or certified financial professional. As always - do your homework and make decisions based on your own education. Seek information and look into projects before adding to or diversifying your portfolios. Zachary Mashiach
Blockchain News
Putin sets Deadline for Russia to Adopt Crypto Legislation Putin sets July 2018 Deadline for Russia to Adopt Legislation over Cryptocurrency
authorities are finally planning to work on new legislation that would apply to cryptocurrency markets by summer 2018, making it effectively legal.
t seems that Russia is now shifting its attitude towards cryptocurrencies. Russian
According to an official publication on March 1, Vladimir Putin, the Russian President set July 1 as a deadline for relevant legislation on
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cryptocurrency to be adopted. As revealed in a report by the Russian parliament’s official publication on March 1, Russian president Vladimir Putin has set a deadline on July 1 for relevant cryptocurrency regulation to be adopted in the country. Anatoly
Aksakov,
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chairman of the State Duma Committee for the Financial Market, stated that the digital currency market is associated with certain risks, and therefore state intervention is needed. And as so, specific regulation for this market is utterly necessary. The Russian Central Bank and the Ministry of Finance prepared a bill on alternative methods of attracting investment (crowdfunding) - On digital financial assets. The documents establishes the legal basis for the primary launch of tokens (ICO) in Russia, regulating the turnover of cryptographic currency, the implementation of mining and ICOs. Although key positions on the main regulation points have already been taken, there are still a few fundamental contradictions between the Bank of Russia and the Ministry of Finance on cryptographic foreign exchange transactions. Aksakov stated:
“The Central Bank is against the legalization of this type of digital currency because, in this case, citizens can start to actively invest 38
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in encryption, not draft law on crowdfunding. taking into account possible risks.” Regulation over Despite the contradictions, President Vladimir Putin instructed that a relevant committee would be appointed to design a set of laws for cryptocurrency that should be adopted by July 1, 2018.
The Official Report
The official report recommended that the two authorities settle on the principle administrative procedures pertaining to digital currency. However, there is still one noteworthy logical inconsistency with regards to cryptographic money trades working in the nation. Basically, the national bank isn’t too happy about retail brokers and financial investors accepting or taking part in cryptocurrency trading. The official report particularly indicates that there are two draft laws focused on blockchain innovation that have been created up to this point. Russia’s Ministry of Finance has put the focus on lawful rules for the issuance of starting coin offerings (ICOs) while the nation’s national bank has arranged a different
cryptocurrency mining
According to Alexei Mostovshchikov, chairman of the Expert Council of the Youth Parliament under the Russian Duma, a different bill that refers to cryptocurrency mining will also be submitted to the Russian Parliament this month. This bill intends to set up administration rules encompassing cryptocurrency mining. Individual investors will be permitted to enter mining pools set up by lawfully perceived entities and take part in an activity that should not be considered as industrial mining. Companies wanting to engage in industrial mining activities will have different rules. Both bills are to be submitted to the chamber this month. After that, the subject will be discussed, but by the looks of it, it is almost certain that the country will be legalizing cryptocurrencies this summer. Nuno Menezes
Exclusive
EARTH Token Listing on Singapore-based CoinHub
DOUGLAS, ISLE OF MAN, March 14, 2018 /EINPresswire.com/ -- 14 March 2018, Isle of Man /cryptocoremedia.com/- The EARTH
Token team is pleased to announce that they have received listing confirmation from CoinHub.io, a digital currency exchange hub that is very se-
lective on the projects they support. The date of the listing will be decided and announced after the conclusion of the official EARTH Token ICO sale Core Magazine
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which ends on Thursday 15th March 2018 12:00 GMT. “We are very pleased with CoinHub’s decision to list EARTH Token on their digital currency exchange hub alongside 30 other cryptocurrencies. This means that EARTH Token holders can gain access to a convertible liquidity pool to trade EARTH Tokens.” Allan Saunders - Managing Director, impactChoice Isle of Man. “Anyone that signs up with CoinHub will be able to buy EARTH Tokens, including demand-side companies, communities, organizations and individuals that want to gain access to the native token on our Natural Asset Exchange (NAE). This listing also offers new users the chance to buy EARTH Token after the sale ends.” he continued. About CoinHub Founded in 2017, based out of Singapore and also operating out of Dubai, CoinHub supports over 30 cryptocurrencies and numerous trading pairs. CoinHub features a Secure Wallet for it’s users with builtin and encrypted cold storage and multi-factor authentication, multiple deposit and withdrawal methods including Visa, MasterCard, bank transfer and cryptocurrencies, 40
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access to high liquidity order books, zero processing fees for deposits and withdrawals, support for major fiat currencies accepting USD, GBP, EUR, a 24 hour customer support team and more. EARTH Token Project The EARTH Token project will bring to life the NAE (Natural Asset Exchange) which is set to revolutionize the trade in carbon mitigation products, environmental sustainability products, and other natural assets. The goal is to establish a global Natural Asset Marketplace that removes current barriers to participation in activities that preserve our Environment while providing all stakeholders with tangible assets that can appreciate in value as the market matures and grows. The EARTH Token ICO sale is currently underway and will end on Thursday 15th March 2018 12:00 GMT. EARTH Tokens can be purchased from the official website at https://earth-token.com/ About impactChoice impactChoice is a leading provider of environmental sustainability solutions. The impactChoice Natural Asset Exchange (NAE) blockchain
platform and EARTH Token (EARTH) creates a unique opportunity to invigorate the Natural Asset Market and enable all stakeholders in the value chain to participate. Transforming Environmental Sustainability from a financial burden to a business incentive by finally providing all contributors with tangible assets that will appreciate in value as the market grows - allowing the market to grow organically and achieve its massive potential. CONTACT Allan Saunders Impact Choice email us here Earth Token 2018
House of Core
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Exclusive
Coinbase Has Reportedly Been Losing Customer's Bitcoins
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oinbase is one of the largest cr yptocurrency exchanges in the United States, and recently announced that it will implement SegWit (segregated witnesses). In case you’re unaware or need a reminder, SegWit is accurately described by Investopedia as follows: 42
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“the process by which the block size limit on a blockchain is increased by removing signature data from Bitcoin transactions. When certain parts of a transaction are removed, this frees up space or capacity to add more transactions to the chain. Segregate means to separate, and Witnesses are the transaction signatures. Hence, Segregated Witness in short,
means to separate transaction signatures.” This could help reduce Bitcoin’s skyrocketing transaction fees since more transactions might be processed per block. However, a shocking report has come out that the exchange didn’t implement SegWit properly. As a result, users seem to be losing their Bitcoins.
Exclusive
Let’s first go over some basics about SegWit itself, and then look more closely into this disturbing news.
SegWit’s History
Bitcoin faced a major scaling issue in 2017 that led to a lot of debate and in-house arguments within the Bitcoin community on which scaling method to adopt - Soft fork(Segwit) or Hard fork (2 MB block size increase). Later, everyone came to a conclusion in an agreement famously called the “New York Agreement” (NYA) to do the soft fork in August 2017, followed by a hard fork in November. Just to be clear, a hard fork occurs when a cryptocurrency is “divided” into two distinct “parts”. This happens when a cryptocurrency platform’s code is altered. Not only is the modified or updated code used in future transactions, but the old version of the code remains as well. A soft fork also results in a cryptocurrency’s code being changed, but only one crypto remains after the fork, and only one corresponding blockchain. So, backward compatible SegWit was implemented successfully on the Bitcoin block-
chain, after miners signaled for Bip91 and eventually locking it. The implementation was successful, but the adoption was a bit slower than expected, due to the efforts required in moving the coins from the legacy address to the SegWit enabled address.
Never Ending Scaling Issues
was full and the transaction fees skyrocketed only because of the reluctance of major exchanges like Coinbase and Bitfinex to upgrade their infrastructure to support SegWit. Numerous tweets and Reddit posts against Coinbase and its CEO Brian Armstrong put a lot of pressure on them to act quickly to retain their customers.
Bitcoin users continued to face high transaction fees and very slow confirmation times. This was due to the fact that the SegWit adoption was slower than expected, and major exchanges and wallet providers were reluctant to upgrade, citing technical difficulties and lack of expertise in upgrading the infrastructure to accommodate SegWit. Moreover, the SegWit adoption chart showed only 12-15% for majority of the months and the transaction fees sky-rocketed. Due largely to this, users started to lose patience and began to express their distress on social media outlets like Twitter and Reddit.
There was also a tweet from Whale Panda mentioning that Armstrong personally holds more ETH than BTC and doesn’t want Bitcoin to scale. Soon, after, Coinbase started losing customers due to these scaling issues and customer complaints. Adding to its headache, new competitors like Robinhood and Squarecash trading apps started attracting millions of users and this made them give in to customers’ demand of adopting SegWit.
Pressure on Coinbase
Armstrong announced on Twitter on January 12th that the batching transaction and SegWit implementation were in progress, and that the
Bitcoin users started to complain that the mempool
Coinbase Announcement on Segwit Implementation
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development team is in the final stages of testing. Similarly, Bitfinex and other wallet providers like Shapeshift also started implementing SegWit. This led to the near-empty mempool and lowest transaction fees in the recent history of crypto, roughly around 1 satoshi/byte. Also, the SegWwit charts showed the adoption has climbed exponentially to more than 30% and is at 29.21% at the time of writing. This was greatly appreciated by Coinbase and Bitfinex users, and they thanked them for their efforts in reducing the transaction fees. Notably, Coinbase handles huge volumes and that’s primarily the reason that SegWit adoption could have a major impact at the mempool level.
Customers Losing Coins
Furthermore, it was reported that after Coinbase implemented SegWit, some users started to lose Bitcoins. In one Reddit post, it was reported that if you send payment to the merchant using Coinbase’s payment gateway, they will not receive the Bitcoin at the other end, and you will lose your coins due to an issue with their 44
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system. The post also explains the reason for this issue, and it is due to the failure on Coinbase’s part to update the BIP70 to use SegWit addresses. Reportedly, coins are now being sent to a Non-SegWit address and are subsequently lost in their tracking system. It also states that you will not be able to contact any form of support, since they don’t have any contact for their merchant services. The post also has the following warning for its customer: DO NOT SEND BITCOINS TO ANY MERCHANT THAT IS USING COINBASE TO ACCEPT PAYMENTS.
Anger on Social Media People started to express their anger on Twitter and Reddit about the incompetence of Coinbase in handling this upgrade. Below are some of the tweets from some frustrated users. #CarpeNoctom tweeted:
“all the good engineers left, what do u expect”
#eumartinez20 tweeted :
“Why would anyone still use them?” #BBadgernath tweeted :
“I had one issue 4 months ago and they never even responded to a half dozen attempts”
#coinhub_nz tweeted :
“I’m going through this with a hotel payment I made with Expedia using coinbase. mission........”
We really hope that Coinbase addresses this issue immediately and also helps customers retrieve their lost funds. In addition, they should hire more competent engineers to upgrade their infrastructure to support the growing demand. Kadhir Ramasubramaniam
Cryptocurrencies are freeing humanity
#no more kingdoms
Blockchain News
Binance Offers $250,000 Bounty for Hackers Tip-Off
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inance, it seems, had enough with the hacking of its cryptocurrency exchange, one of the biggest in the world. The founder of Binance, Zhao Changpeng, has announced to pay $250,000 bounty for hackers 48
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who were behind one of the most damaging attacks recently. So, if you have any lead or information on who hacked Binance, you could potentially win the $250,000 bounty for hackers. However, this is not all,
as the Binance management knows about the future challenges it would have to tackle. Therefore, it has set aside a massive $10 million for future bounties. The company also wants other cryptocurrencies to follow in its footsteps when it comes to giving a bounty for
Blockchain News
hackers.
Large-Scale Phishing and Stealing Attempt
The cryptocurrency exchange unveiled that it was subject to a large-scale phishing & stealing attempt. Furthermore, the statement added that all its funds remained safe. Yet, it was not able to reverse some of the trades. The soaring cryptocurrency prices during the last two months of the previous year led to making the hacks a lot more lucrative. Hackers got their hands on a staggering $700 million by stealing tokens in Japan and Italy. These hacks and such other robberies have put extra pressure on the cryptocurrency exchanges to place robust security measures. Similarly, the industry, and government bodies are considering stricter cryptocurrency regulations.
Bounty for Hackers – Switching to the Offensive
In the past, the cryptocurrency exchanges would put in place measures and defend against potential hacking attempts. However, they are now playing the offense to try and
stop hackers from stealing money from the cryptocurrency exchanges. The company maintains that the hackers were not successful in their Binance hacking attempt. Here is the announcement about the bounty for hackers. “The first person to supply substantial information and evidence that leads to the legal arrest of the hackers, in any jurisdiction, will receive the equivalent of $250,000 USD in BNB. If your local laws allow, you may remain anonymous.” This bounty will surely attract a lot of inside sources to try and find out who was responsible for the Binance hack. Furthermore, the company also clarified that it would divide the amount among individuals if more than one person gave the information. Anyone who wants to inform Binance about the person (s) behind the hacking attempt of their cryptocurrency exchange must send an email to bounty [at] Binance [dot] com.
A Bit about the Binance Attack The hackers attempted to steal the money on 7th March 2018 when the customers of Binance started buying Viacoin. This sudden purchase led to a sharp increase in price of Viacoin. However, thanks to the automatic block mechanism, the attack was prevented. The said accounts hacked were reportedly compromised back in January this year. The hackers had quietly gathered info and waited for the right moment to strike. Thus, many experts overseeing cryptocurrency exchange hacks suggest a coordinated professional effort behind it. This hack changes everything for cryptocurrency exchanges globally. Moreover, Binance alone, is responsible for handling daily trading volume of over 1 billion USD. Notably, this attack on Binance raises serious concerns among Binance users of this exchange’s security mechanisms and seriously dents investors’ confidence. Farrukh
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Blockchain News
Fujitsu Working To Mitigate Ethereum Smart Contract Bugs
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ne of the leading Japanese IT firms, Fujitsu, is working on a new technology which aims to mitigate the problems associated with Ethereum smart contracts. Moreover, a statement today revealed the company’s plans to develop a new system that would have the capability to detect potential risks present in the source code of Ethereum’s smart contracts. The basic underlying concept is to help the blockchain authenticate 50
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source call, which is responsible for triggering smart contract transactions.
Ethereum Smart Contracts Differentiate It from Bitcoin
One of the differentiating factors between Bitcoin and Ethereum are smart contracts. This feature lets developers build applications on top of the current Ethereum blockchain
for automatically executing contracts or programming orders.
The Six Ethereum Smart Contract Bugs
The six Ethereum smart contracts bugs that Fujitsu aims to help with include reentrancy, authenticating the source of a transaction call, call stack restrictions, divide by zero, transaction order dependence, and transaction
Blockchain News
uncertainty due to reliance on timestamp.
A Bit about the Development Background
One benefit of using blockchain technology remains its ability to deliver unaltered data without the need for a trusted third-party intermediary. This kind of exemption for the need of third-party intermediary finds blockchain technology uses in real estate registration, securities management, electronic government, and healthcare industries. Smart contracts are copied to multiple locations and executed in a distributed way. Thus, after the execution of a smart contact, it cannot be stopped easily. Similarly, the executed smart contracts cannot be revised despite identification of any risks. Among other problems and implications of these risks is the potential risk of improper transfer of large sums of money. Notably, the Ethereum specification can use indirect calls to potentially evade authentication.
How Fujitsu Technology is poised to Overcome
Ethereum Smart Contract Bugs? Here is how the company thinks it is going to overcome the Ethereum smart contract bugs.
Symbolic Execution Technology
Fujitsu Laboratories, in collaboration with Fujitsu Research and Development, has developed an algorithm to address issues related to Ethereum’s smart contracts. This algorithm identifies the Ethereum smart contract bugs, which can be potentially used to fake origins of a transaction call. This technology ensures highly accurate risk detection by identifying and comparing unique code patterns. The use of symbolic execution under various circumstances helps locate any improper processing. Accurate Identification of Relevant Places in Source Code for Locating Risks The technology also looks at various parts of code to identify which chunk of the code exposes the system to risk, with what’s claimed to be greater accuracy. Additionally, the technology separates
the unused commands from a debugging execution file. This file directly corresponds to the Ethereum execution files. Therefore, developers can more easily try to mitigate the risks identified within the execution file. Furthermore, the technology establishes a link between the debugging execution file and the main execution file. Here is how Fujitsu announced the results of the use of this technology for identifying Ethereum smart contract bugs.
“Using this newly developed technology, the two companies found that where previous verification tools had a detection rate of about 67%, this new technology was capable of 100% detection, excepting a few items, and that in terms of precision it achieved an accuracy rate of up to 88%, enabling both highly accurate risk detection as well as source code risk location identification.” Farrukh Core Magazine
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Exclusive
Bitcoin Private, Slow Start, Bright Future? The Spork
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n January 2018, Rett Creighton, creator of Bitcoin Private and the now abandoned Zclassic, announced the intention to create another Bitcoin fork. 52
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Creighton called it a Spork. It was going to be a fork of Zclassic as well and have its zk-SNARKs technology for privacy. Having a meaningful feature made Bitcoin Private likely to succeed. This article takes a look at Bitcoin Private, the earlier Bitcoin
forks, and what would keep Bitcoin Private relevant in the future.
A Bit of Fork History
It all started with Bitcoin Cash. This fork of Bitcoin oc-
Exclusive
curred on 1st August 2017. The whole point of this split in the Bitcoin protocol was to reduce congestion and transaction fees on the Bitcoin network by increasing the block size of Bitcoin from 1 MB to 8 MB. Some members of the Bitcoin community felt the fork would once and for all settle the scaling debate that had divided the community. Others feared that the fork would be the beginning of the end of Bitcoin. The exact opposite was the case when the price of Bitcoin continued to soar post-fork. At the same time, the price of Bitcoin Cash did not go to zero, but oscillated above and below 300 dollars initially. This is how it all began and was basically free money for all who held Bitcoin in wallets they controlled. Forks were good, after all. If forks were good, then more of it would not hurt anyone. Right? Next up was Bitcoin Gold on 24 October 2017. This one was touted as a “friendly fork”. This meant the Bitcoin Gold team was not hostile to Bitcoin and had no intentions of competing to be the “real Bitcoin.” Bitcoin Gold’s selling point was “making Bitcoin decentralized again”. To achieve this, Bitcoin
Gold’s mining algorithm would allow anybody to mine using GPUs by giving specialized miners no advantage.
these projects were shady and/ or shoddy. Others were clearly jokes. It wasn’t so easy to make free money after all.
The Bitcoin Gold fork came off eventually despite some hitches. The Bitcoin Gold team got a lot of flak for having a pre-mine. The team mined some Bitcoin Gold before the public was able to get involved. The excuse was that the funds from the pre-mined coins would be used for marketing and paying developers. To many, it was all just a cash grab.
Bitcoin Private Spork
The criticisms aside, Bitcoin Gold also has value and still survives. It is listed on several exchanges and supported by multiple wallets. There is even the BTGPay program which is making progress with merchant adoption for Bitcoin Gold. More free money for all involved. Following Bitcoin Cash and Bitcoin Gold, it was generally expected that there would be a “fork craze” similar to the ICO craze. There was a fork craze. It just didn’t last too long. Dozens of coins tried to replicate the Bitcoin Cash and Bitcoin Gold success but by the end of January 2018, it was obvious all of them had failed. Most of
Just when it seemed all possible Bitcoin variations had been exhausted, the Bitcoin Private fork was announced. As the name suggests, the privacy feature was to be added to Bitcoin. This was to be done by forking Zclassic into Bitcoin and come up with the new Bitcoin Private. Zclassic was a fork of Zcash and also had the zk-SNARKS technology for shielded transactions. This interesting fork seemed destined for success. Here was a friendly fork with an important feature. It is hard to argue against the need for privacy on Bitcoin. The whole process of coming out with the fork was community-driven. Zclassic already had an existing community behind it. This is a good advantage for a newly created cryptocurrency to have. For instance, on Twitter, discord, Reddit, and Telegram, Bitcoin Private had and still has a larger following than Core Magazine
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Bitcoin Gold. Funding for the whole project also came from donations. The team behind Bitcoin Private was also very open about plans and events leading up to the fork. Care was taken not to rush things, but make sure everything that had to be done was done properly. In all, it could be said that the fork was generally handled well. With all these positives in mind, there were quite a number of speculators predicting that the price of Bitcoin Private would fall somewhere between that of Bitcoin Cash and Bitcoin Gold. Most of the few who dared to predict the price settled at $500. In the few days leading to the fork snapshot on 28th February 2018, the price of Zclassic dropped sharply from over a $100 to about $10 dollars eventually. Perhaps, this was a sign of the things to come.
Slow Start, Bear Market to Blame? Historical data from CoinMarketCap.com shows that Bitcoin Private opened at $65.82 and is trading at $35.34 54
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at the time of writing this. The opening price of $65.82 falls way below that of both Bitcoin Cash and Bitcoin Gold which both opened above $500. We could still be in the price discovery stage, but considering the effort involved in creating the coin and expectations of Zclassic buyers, the initial price levels for the first few weeks was a little bit disappointing. What could be the reason(s) for this? Maybe the desire for privacy is overestimated. The cryptocurrency community might also be tired of forks. We could also blame the bear market. In my opinion, the latter seems more plausible. With relatively less interest in cryptocurrencies following the recent massive drop in prices, the market seems to have run out of buyers to push price up. We might have to wait till the next cryptocurrency boom to see where Bitcoin Private truly stands.
It’s Still Early Days, Increased Adoption Would Do The Trick The importance of privacy cannot be overstated. However, there are quite a number
of privacy-focused coins with little patronage. The name Bitcoin also helps, but other failed forks have shown that simply adding the name is not enough. Adoption is most likely to be the ultimate deciding factor when it comes to the future of Bitcoin Private. Should it become the privacyfocused cryptocurrency of choice, Bitcoin Private would definitely rank higher up the list. If it somehow doesn’t, then my guess is we might not see another fork for some time. I say so because Bitcoin Private did almost everything right. Elikem Kofi Attah elikem@coregroup.info
Exclusive
Bitshares, Everything On A Decentralized Financial Platform
Decentralized Financial Platform
B
itshares is a blockchain-based, decentralized financial platform built with a plethora of services. It comes with a decentralized exchange and allows the establishment of
Distributed Autonomous Companies. Dan Larimer and Charles Hoskinson founded Bitshares in 2014 with funding from the BitFund.PE venture capital firm. Hoskinson was later involved with the creation of Ethereum and Cardano. Larimer has also since then co-founded Graphene powered Steemit. Bitshares,
just like Steemit, is Graphene powered. Bitshares derives one of its strengths from implementing the Graphene blockchain protocol. Test results show that its platform is able to handle 100,000 transactions per second. This is a huge achievement considering the fact that other blockchains with adoption are Core Magazine
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grappling with processing the many transactions on their network at reasonable speeds.
Decentralized Autonomous Company (DAC)
At the center of the decentralized financial platform are decentralized autonomous companies (DACs). Bitshares, with DACs, aims to leverage blockchain technology to effect changes in how companies are run. This change is similar to how Bitcoin changed money by taking it out of the control of central authorities. DACs are a radical shift from the traditional way of running companies to a more decentralized, open and truly global process. A Distributed Autonomous Company is one that is operated based on a set of business rules without the hand of humans in control. The set of rules are considered incorruptible, because they are coded into open-source software that is distributed globally, across various computers of members of the company. This way, a company and its rules are protected from any tyrannical control by any one entity.
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The Bitshares Decentralized Exchange
Like all decentralized exchanges (DEX), the Bitshares DEX enables users to directly trade assets, without having to trust a centralized authority to hold funds. Trading on the Bitshares DEX is not limited to only crypto assets. According to the official Bitshares webpage, the DEX is “asset agnostic�. Tradable assets range form GOLD to USD to many cryptocurrencies. The Bitshares DEX does not only offer advantages over centralized exchanges. Its development team claims their DEX is faster than other decentralized exchanges, because trades on the Bitshares DEX occur in real-time. Another edge the Bitshares DEX has over others is its provable order matching algorithm. With this algorithm, users can be sure their orders match in the right way. This adds even more fairness to the decentralized system. There are also Smartcoins on the DEX. Smartcoins are basically digital tokens on the DEX that are worth the value of their underlying asset.
For instance, the Smartcoin bitUSD is worth the value of the USD. Each Smartcoin is backed by locked-up shares of Bitshares (BTS). Withdrawals come out of those locked up funds when done.
Delegated Proofof-Stake for Consensus
There are many interesting ways through which many blockchain projects achieve consensus on their networks. Each project lays out reasons for choosing their preferred system and also state advantages derived from it. Bitshares skirts the more popular Proofof-Work and Proof-of-Stake consensus mechanisms. Instead, the Delegated Proof of Stake (DPOS) is used on the Bitshares networks. With DPoS, witnesses or delegates are responsible for signing blocks. Users on the network, in turn, vote on the witnesses every time they make transactions. This system drops some points with regards to decentralization, but scores high on being democratic. Delegated proof-of-stake also compromises a little when it comes to doing away with trust but makes up for the
Exclusive
compromise. First, there are measures in place to ensure the nodes or delegates entrusted with the task of signing blocks are being honest. Besides this, every signed block is verified to have followed a block signed by a trusted node. An argument for delegated proof-of-stake is that it results in faster confirmation times and transactions. This is because transactions are confirmed once a number of trusted nodes give the nod. Other untrusted nodes do not have to be waited on to have transactions confirmed.
Price Suppression?
On CoinMarketCap.com, the price of Bitshares, at the time of writing, stands at $0.118364. Its $309,069,710 market cap makes it 38th on the list of cryptocurrency-platforms. There have been better days. Bitshares’ long-term performance, in terms of price, is not one that would impress a cryptocurrency investor. The roughly 11% increase in price over almost 4 years seems ordinary when comparing with other cryptocurrencies. Surely, there must be a reason for this. A decentralized financial platform with years of existence and proven useful technology making ordinary long-term
gains in this market is surprising. One possible reason for the relatively low price levels of Bitshares could be efforts to cripple it by other exchanges on which it is listed. Sentiments shared by community members suggest that the said centralized exchanges would naturally not want the token of a decentralized exchange to do well on their exchange. Bittrex surprised many in October 2017 by announcing they would delist Bitshares (BTS). According to some members of the Bitshares subreddit, the reasons that came out did not warrant delisting of a top volume currency. There have also been accusations leveled against Poloniex for suppressing BTS price. It was noticed that wallets on the exchange were often disabled when BTS was on a bull run.
Current and Upcoming Developments on the Decentralized Financial Platform
Based on a 27 February update on the state of the Bitshares platform, the network had seen growth in various ways. Notably, the number
of wallets on the network had grown by 28,877 within a week. There had been a steady increase in the number of Smartcoins issued over the past year and the number of accounts holding Bitshares of exchanges was on a 17-week continuous rise. Another new development is the upcoming Bitshares-based game known as BITFARM. It would be interesting to see the effect this would have on the platform. We don’t expect the network to be clogged, since Bitshares has been proven to be capable of handling way more transactions than major blockchains can currently process per second. Btishares would, however, benefit from the CryptoKitties kind of hype. As a decentralized financial platform, Bitshares is doing different things and doing them well. Due to this, we can expect adoption and patronage of the network to increase with time. Bitshares should be standing strong with other top cryptocurrency platforms in the years to come. Elikem Kofi Attah elikem@coregroup.info
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Blockchain News
FSA, Japan's Regulator, Orders Suspension Of Two Crypto Exchanges FSA, Japan’s Regulatory Authority, Suspends Trading In Two CryptoExchanges Trading in two of Japan’s cryptocurrency exchanges, Bitstation and FSHO, has been halted by its Financial Service Agency (FSA). Moreover, the FSA has ordered both exchanges to suspend business 60
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operations for 1 month (until April 7th). Additionally, five other digital currency exchanges, which also includes Coincheck, have been told to address security and other performance-related issues. As the exchanges attempt to work on improving their services, they have been instructed to periodically update the FSA about their efforts. Some of the noteworthy comments made by the the FSA after examining the busi-
ness practices of Yokohamabased FSHO exchange were as follows:
“There were repeated cases of high-value cryptocurrency trades with no judgment made about the need for notification of a suspicious transaction.” It appears that the country’s regulator has taken these ac-
Blockchain News
tions after an extensive probe of Japan’s crypto-exchanges. Findings of the investigation indicate that the trading platforms were not in proper compliance of KYC (Know Your Customer) regulations. KYC requires that a business take appropriate measures to verify the identify of their clients and adhere to anti-money laundering guidelines.
borders. For instance, it’s possible that the relatively smaller crypto-exchanges, along with other poorly managed crypto-related startups, could be forced to shut down their operations. That’s because having to comply with new regulations requires a fair amount of resources and qualified personnel that demand competitive wages. The Financial Times even predicts that smaller crypto companies could join or be acquired by larger organizations.
Japan’s Regulatory Body Is Attempting To “Clean Up” The Country’s Crypto Businesses Have Industry Struggled To Other issues found, accord- Return To Normal ing to the FSA, were poorly trained staff members and Operations After even “misappropriated” funds. Suspensions Furthermore, this nation-wide investigation of crypto-related businesses has largely been prompted by the hack of Japan’s Coincheck crypto-exchange.
As most crypto watchers are aware, the hack led to over $530 million worth of digital currency being stolen. Clearly, this hack coupled with FSA’s crackdown on the nation’s cryptocurrency market will likely lead to several changes in how this emerging industry operates within the country’s
Historically, financial firms have not been able to recover to full strength after their business operations were suspended. Therefore, this crackdown will hopefully set a good example, and be something other crypto-related companies can learn from.
ity. As Core Media reported, French stock market regulator, Autorité des marchés financiers (AMF), stated that Bitcoin derivatives are subject to the same regulations as traditional derivatives. Failure to comply with the applicable rules and guidelines could result in stiff penalties. Given the heightened scrutiny over crypto-related activity and businesses, it’s possible that cryptocurrency exchanges and other related businesses will be forced to comply with more tightened regulations. This might actually be a good thing given the large number of scams that have been orchestrated, particularly under the guise of ICOs. Omar Faridi omar@coregroup.info
Notably, these suspensions have come at a time when regulators around the world have begun to increasingly clamp down on crypto-related activCore Magazine
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Biography
Kadhir Velavan Ramasubramaniam
I graduated from Anna University Chennai, India with a degree in Electronics & Communication. During my studies, I became passionate about Oracle Database Administration, and so I earned my certification and training even before I graduated. I then joined a company called ‘Adrenalin’, which specializes in HRMS and Payroll Software. When I joined, I was assigned the role of application.
However, my ambition was to become a Database Administrator. Any company that is serious about their production system won’t give a critical job like DBA to a fresh graduate, so I had to prove my skills. Luckily for me, two senior DBAs resigned and I got the opportunity to fill those vacant positions. I worked tirelessly and learned quickly to give the organization the confidence that I could handle the two senior positions without any significant issues. It was tough but equally challenging, and I proved my ability and got proper appreciation overall. After working there for four years, I joined ‘Tata Consultancy Services’ and worked there for a year. Then, I took
a break for six months to learn more about high-end, new technologies like RAC and Dataguard and completed all the certifications that could add value to my profile. After this, I joined “Bank of New York Mellon” (BNYM) in Chennai as a Senior Database administrator. Working with many companies has allowed me to gain knowledge of the various types of infrastructure used by each organization. While being employed at BNYM, I was presented with a great opportunity at MphasiS. So, I made the decision to join MphasiS for the client AIG insurance. At MphasiS, I worked with different RDBMS (Relational Database Management Systems) like MSSQL,
Oracle, and Netezza. After working for a while at MphasiS, I received a call from “Digicel Group” – a telecom company based in the Fiji Islands. I wanted to give it a try since it gave me the chance to learn about a new culture and a different nation to explore, far away from my home. So, I moved to the Fiji Islands and worked there for Digicel till now. In 2014, I heard the news of Mt. Gox cryptocurrency exchange collapsing and the story of a person throwing away a hardware wallet with 5000 Bitcoins by mistake. That was the first time I came to know about Bitcoin. Soon, I became intrigued and fascinated by the mining activity that happens in Bitcoin world. At first, I had a funny idea in my mind of mining activity as a manual process of some mathematicians solving puzzles to get rewarded in Bitcoins. Later on though, I learned about it more, and it was quite interesting to know how disruptive this technology would be in future.
Then I proceeded to join Twitter to follow many experts in this field, and it taught me many things about Bitcoin and Cryptocurrencies. I closely followed the Twitter community during each and every challenge Bitcoin and other cryptocurrencies faced, and stood by this tech for it to grow and liberate us by giving us financial freedom. While I was immersed in daily Twitter posts and YouTube videos about cryptocurrencies and blockchain, I came across CryptoCoreMedia. After visiting the company website, I decided to contribute my knowledge in order to teach others about the world of cryptocurrencies. So, I joined them as a writer for their monthly magazine and contributor to their daily news posts. This has provided me a great outlet for giving my best to teach people and expand my own knowledge about blockchain technology and digital currencies.
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Blockchain News
Qarnot Unveils QC1 A Crypto Heater Cryptocurrency Mining has become very much geographically centralized and Qarnot’s QC1 - a crypto heater - has a solution for it.
Computational power put to use
Corporate companies dislike the heat generated by the servers in data centers since it
demands an exorbitant amount of energy to cool them. However, very few think out of the box to use that heat produced to their benefit. Notably, Qarnot is a French company that has thought of an innovative way to handle the heat generated by its distributed data center. The idea is to use the heat to warm up your living rooms, while renting the
computational power to other corporate companies, using a distributed cloud platform. Qarnot has come up with a fantastic idea of distributing the heat produced by the CPU across homes that will help keep them warm during winter, while those CPU’s computational power is put to use for companies that need them for Core Magazine
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their complex operations. This can be visualized as a cloud computing platform where the cloud’s server sits at everyone’s home, warming them up instead of a geographically centralized data center, which uses a large sum of money and energy to cool them.
Brief Summary of Qarnot
Qarnot is a French startup company specializing in roomheating equipment, as well as renting a cloud platform to clients like BNP Paribas, Société Générale, Air Liquide. They were also recently awarded “Eureka Park Climate Change Innovators award” at CES 2018. They continuously innovate and work towards giving back the computational power back to the people instead of accumulating at one single place.
CPU to GPU
Qarnot has gone one step further and come out with another product called QC1 - “Crypto heater”, which gives the computational power as well as the heat generated back to the end user. In the previous products Qarnot released, only the heat can be used by the user and the computational power was outsourced to cor66
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porate companies. They made a minor change by replacing the CPU with a suitable GPU for enabling the end user to mine their favorite cryptocurrency. Notably, QC1 can warm up your room during the coldest of winters while the excess computational power is put to use for mining cryptocurrencies. QC1 can mine Ethereum for you while heating the room, and the setup is straightforward, which involves just connecting your mobile to the device and providing the Ethereum address in their app. You passively earn cryptocurrencies by just turning on your QC1 Crypto heater in the comfort of your home.
Technical Specifications of QC1
QC1 has two GPUs that mine at 60 MH/s. The equipment can mine other cryptocurrencies as well, if you set it up accordingly. Furthermore, the microprocessors act as the heat source to warm the room while the computational power is put to use to mine coins. However, one should be wary of the electricity charges that would occur due to this multipurpose heater. Since we still
need to heat our rooms during winter, we might as well take advantage of the additional bonus of mining cryptocurrencies at the same time.
QC1 paving the way for Decentralized Mining
While blockchain experts still worry about the geographically centralized mining activity endangering the decentralized nature of cryptocurrencies, Qarnot’s QC1 has opened the Pandora box for us. It has made us realize that our day to day equipment, if put to use properly, can produce enough computational power to mine in the comfort of our homes, and this could bring back mining to everyone’s homes, giving more power back to the people. Kadhir Velavan Ramasubramaniam kadhir@coregroup.info
Blockchain News
Abra App To Use Smart Contracts on Litecoin’s Network
L
itecoin is, quite often, not given enough credit for the value it provides as a cryptocurrency platform, considering its abundant functionality and use cases. The platform made significant price gains in 2017, after SegWit was successfully activated, and its founder Charlie Lee started to concentrate again on Litecoin’s further development. 68
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Lee recently announced in his tweet that a mobile wallet / exchange “Abra” will be using Smart Contracts running on Litecoin’s network. Let’s look at the various aspects of this smart contract integration and how it could add value to the Abra app and Litecoin’s network as a whole.
Growth of the Litecoin Network
Litecoin’s platform had a tremendous growth spurt when its price went from $5 in January 2017 to an all-time high of $358, and currently, it is trading at $161 at the time of writing. That is almost 3220% growth in 15 months. This stupendous growth is mostly attributed to the return of Charlie Lee, its founder, to the “Litecoin Foundation”.
Blockchain News
Lee has worked very hard in helping Litecoin’s network reach this level of adoption and acceptance. He was working as a “Director of Engineering at Coinbase” prior to his reentry into Litecoin’s further development. Litecoin’s network was stagnating in development, and after he returned, it started to evolve in a fast manner. After his reentry, the crypto-platform has seen a major improvement in development and an increased adoption rate among crypto users. Litecoin is faster, with 2.5 minute block times, compared to Bitcoin’s 10 minutes. Also, the mining fees are low compared to Bitcoin. So, overall, it seems to have many advantages, compared to Bitcoin, especially if it is being used as a payment system.
Silver to Gold
Charlie Lee often mentions the relationship of Litecoin and Bitcoin as Silver to Gold, and that both networks have complemented each other in new technology adoption and growth. Litecoin’s network is considered by many to be the most secure network after Bitcoin, due to the abundant hash power and the strength of
its network. 2017 was the game changer for both Litecoin’s and Bitcoin’s network since SegWit was activated in both of them, enabling easy collaboration between the two networks. The Lightning network, a second layer payment network built on top of a platform’s blockchain, can be used with both Bitcoin and Litecoin. Notably, for Lightening network to work properly, SegWit must be enabled. Enabling SegWit & the Lightening Network, together, can allow for faster, cheaper, and more efficient payment systems. Additionally, both can be integrated for ease of use. Same is the case with atomic swaps, so you can swap BTC for LTC or LTC for BTC without any centralized exchange.
Development Roadmap
Charlie Lee has always emphasized on increasing usage, adoption, and the volume rather than price or market cap. He believes that the growth in usage is more important than
price. He notes that price will automatically follow if the usage and adoption are high. He then announced, in a Reddit post, that he sold all his coins to avoid any accusation of market manipulation, and to avoid price from distracting him from actual development. The Litecoin founder also released an ambitious development roadmap in 2017. According to the plan, Litecoin’s development team would like to see major businesses and platforms adopting their platform in their ecosystem. Lee further mentioned that there would be a big surprise announcement in the days to come. Many were curious to know what this surprise was, and they were assuming that some major business would be adopting Litecoin’s network in their services. Below is the tweet from him a few days ago, mentioning the accomplishment and the yet to be completed list of goals for Litecoin. Notably, Lee has only
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mentioned the Abra integration as “One huge unexpected surprise”.
Litecoin’s Integration in Abra The surprise announcement that Lee was mentioning was out finally after a prolonged suspense. He mentioned in his tweet that Abra will be using smart contracts on Litecoin’s network in about 2 weeks. Abra has chosen Litecoin’s network over Bitcoin Cash and other crypto-platforms due to its relatively more stable price and better network security. The Abra app protocol would function on Litecoin’s network as a smart contract, enabling trading of other currencies on that app.
How does it work? The Abra app allows users to trade 20 cryptocurrencies and 50 fiat currencies, and so it is has numerous options allowing investors to easily trade or swap fiat-crypto, crypto-fiat, and crypto-crypto pairs. The app doesn’t allow you to buy a particular cryptocurrency directly. It will let you to invest only in LTC, and you can have access to other cryptocurren70
Core Magazine
cies using a smart contract incorporated on Abra using the Litecoin network. You have to invest in LTC first, and then it will lock up the LTC at the market price of the coin that you desire to trade. If that particular coin doubles in value, then you can sign and get back your profits in LTC back to your wallet. At no point in this process will you actually own that coin you are trading. You get exposure to price change instead of owning that particular coin. Moreover, the smart contract on Litecoin’s network works in such a way that synthetic currencies that you own follow the market price using the smart contract built on Litecoin’s network.
Choosing Litecoin’s Network Abra chose Litecoin’s network over Bitcoin Cash or other networks due to its security, safety and scalability features. Its network also doesn’t encounter any outage or a sudden spike in transaction fees, which are very crucial for any cryptoplatform, to give continuous uninterrupted service to users.
Litecoin is considered to be slightly less secure than Bitcoin, but there are other advantages like lower fees and faster transactions over Bitcoin. Abra believes that Litecoin’s network is the best choice for them and want to adopt it without any second thought. Below is the tweet from Lee mentioning the reason for Abra to choose Litecoin’s network over Bitcoin Cash for integration. The above is surely a big surprise, and great news for Litecoin’s supporters. Many new coins are still struggling to get listed on exchanges, but in this case, an exchange has been added to Litecoin’s network. Surely, it is the biggest news of the year for the coin, and we will just have to see if this helps in massive adoption of Litecoin.
Kadhir Velavan Ramasubramaniam kadhir@coregroup.info
We are moving to Discord
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Biography
Waleed Iqbal
I am senior high student currently
the most were physics, chemistry, his-
doing my A-Levels privately. I have
tory and English literature. My interest
done my matriculation from Our
in physics and chemistry allowed me
Own English High School, Sharjah,
to understand how different factors ac-
which is in the UAE. My school life
cumulate and impact my surroundings.
was pretty much ordinary. Most of
This gave me a broader sense of how the
my time was spent chatting around
things around me work. My interest in
with friends and playing basketball.
history and English literature allowed me
Although I was normal in academ-
to understand the world before, that led
ics, I made up for that by sticking to
to this one and better express myself by
schedules and submitting my assign-
developing good communications skills.
ments on time. It was this behavior
Ever since I was young, I found my
that helped me to be acknowledged
calling towards technology. One of my
by my teachers and peers.
favorite hobbies, much to my parent’s dis-
The subjects that intrigued me
may, was to disassemble anything I could
get my hands on. At the time, I had zero
of Gulf News, we would get the Friday
writing. In my search for new openings,
understanding of how complex circuits
Magazine weekly. This is arguably
I came across an opportunity to write
and electronics worked, but it was just
the most read weekly magazine in the
for Crypto Core Media. As the topic
a natural response to my curiosity. One
nation. Although the Friday Magazine
of cryptocurrencies is revolutionary and
thing that I had going was an expert in
wasn’t about technology, the content
well within my field of interest, I was
the house. My father’s field of work is
published was informative, relatable and
hooked. By writing about cryptocurren-
Electrical Engineering, and being an
understandable. By regularly reading the
cies, I understood their inner workings
engineer himself, it was his knowledge
magazine, I developed a sense of how
and the events surrounding them. It is
and expertise that helped me in devel-
articles and such should be written.
a privilege to be writing for them, and
oping an early understanding of things.
To put my skills to the test, I took
with Cryptocurrencies and Blockchain
My favorite past time, when I
up content writing. As I wrote different
having the potential to completely
wasn’t disassembling anything, was
types of articles for different clientele,
change how we interact with the world
and still is, reading. Since I was born
it served as a learning process and
around us, it is only a matter of time
in the UAE, and we were subscribers
transformation of my reading skills into
before their use becomes commonplace.
72
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Blockchain News
Iceland Reports "Big Bitcoin Heist" Of 600 Powerful Mining Computers 76
Core Magazine
Blockchain News
Iceland Reports “Big Bitcoin Heist”
A
lmost $2 million worth of cryptocurrency mining equipment has reportedly been stolen by eleven individuals in Iceland. The accused, which include a security guard, have now been arrested by local authorities, according to several reports. The equipment is said to have been the property of data centers operating in the Nordic island country. This incident is being called the “Big Bitcoin Heist” by Iceland’s media outlets. Apparently, the real issue seems to be concerning the equipment allegedly used to mine the Bitcoins, and not so much the “earned” Bitcoins. Moreover, a judge in the country’s Reykjanes District Court ordered two individuals, linked to the heist, to remain in custody, as the investigation proceeds.
Multiple Burglaries in December and January
So far, it has been confirmed that there were four separate incidents during which the mining equipment
was reportedly stolen. Three of the burglaries took place in December and one happened in January, according to the Associated Press. Local law enforcement also said that two of the burglaries occurred on the Reykjanes peninsula. While speaking about the heists, police commissioner Olafur Helgi Kjartansson noted that,
“This is a grand theft on a scale unseen before. Everything points to this being a highly organized crime.” Other findings of the investigation state that approximately 600 powerful computers were stolen during the burglaries. Notably, these types of crypto-related heists are becoming increasingly common. As Core Media reported on February 23rd, Taiwanese authorities arrested four men linked to a violent Bitcoin robbery, during which they reportedly forced the victims to transfer a large number of Bitcoins to their own wallets.
Cryptocurrency Mining Is Popular In Iceland Renewable energy is readily and cheaply available in Iceland. Since mining Bitcoin and other cryptocurrencies consumes a lot of electricity, the island country is an ideal place for this type of activity. In fact, a type of “bitcoin gold rush” is going on in the Nordic nation. That’s because crypto enthusiasts looking for cheap energy have been moving to Iceland, so that they can mine cryptocurrencies at a much more affordable cost. However, due to the heists, Icelandic law enforcement agencies are keeping a close watch on the country’s energy consumption, in order to track down the stolen equipment. Presumably, tracing locations with abnormally high electricity usage could help in finding the missing mining computers, and possibly even more criminals that could be connected to this “organized crime.” Omar Faridi omar@coregroup.info
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Blockchain News
Petro Crypto Called A Fraud By Venezuela's Opposition Party Petro Cryptocurrency Declared Illegal
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embers of Ve n e z u e l a ’s opposition parties claim that the use of the country’s Petro (PTR) cryptocurrency is illegal, according to domestic law. Asamblea Nacional, a political group that strongly opposes President Maduro’s 78
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government policies, has stated that the issuance of the Petro violates the constitution. The group also called Maduro’s crypto project a fraud, and a way to fool investors. Furthermore, Asamblea Nacioanal vehemently opposed the sale of the Petro cryptocurrency, which Maduro says has already brought in $735 million. According to the group, the
oil-backed digital currency will not be effective in helping the sanction-hit nation to recover from its ongoing political and economic crisis. Moreover, the legislature states that the ruling government party wants local businesses and retirement account holders to start accepting the Petro. Should this happen, it would be the first time that a Nation state has authorized and issued a blockchain-enabled payment
Blockchain News
method.
Venezuela’s Oil-Backed Cryptocurrency Called A Scam
Although Venezuela’s opposition party members acknowledge that blockchain and cryptocurrencies are a revolutionary new technology, they think that the oil-backed Petro is nothing more than a scam. Notably, the lawmakers believe that it is just another way for Maduro’s corrupt government to embezzle more money from people. If these allegations are in fact true, then it would be another devastating blow to the country’s citizens who have had to endure crippling hyperinflation and very high levels of unemployment. During these times of crises, Venezuela’s ruling party has also put together competing legislature, which is referred to as the National Constituent Assembly (ANC). Reportedly, the ANC has promoted the use of the Petro as a way to bypass US-led sanctions, and called it an “act of rebellion.” Rafael Guzman, who’s in charge of monetary and finance policies, stated:
“This [Petro] deepens the crisis that we are living in. The PTR is another [example] of corruption, and we will come out of this crisis with measures that we have announced from this Parliament.” Meanwhile, Deputy Francisco Sucre, another official who also opposes Venezuela’s newly launched cryptocurrency, asserts that there is no legitimate way to back and guarantee the PTR with the nation’s assets. Therefore, he demanded that its public offering be stopped, as it is basically a fraud. Additionally, while weighing in on Venezuela’s present economic and political condition, he noted:
“The situation in the country is becoming more jeopardized, nobody knows the origin of these investors, and nobody can invest a dollar in a guaranteed device with goods that come in free fall, like oil.”
United States And IMF Issue Warnings
Guzman and Sucre are not alone in voicing their concerns regarding the Petro and Venezuela’s instability. The United States Treasury has warned that the country could be violating internationally imposed sanctions by issuing its statecontrolled digital currency. In addition, the International Monetary Fund (IMF) also projects even more turbulent times for Venezuela in 2018. That’s because it has determined that inflation in the country will skyrocket by 13,000 percent while its economy will shrink by as much as 15%. Despite these criticisms and allegations, Venezuela’s PTR has captured the attention of investors in Qatar and Turkey. However, it is unlikely that simply issuing a state-backed cryptocurrency will help revive the Venezuelan economy. Clearly, much better reform measures are needed, along with more cooperation from the international community, in order for the nation to break free from its deep state of recession. Omar Faridi omar@coregroup.info Core Magazine
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Bitcoin Q&A with andreas antonopoulos: What is the roadmap? Jeff asks: “What projects are most needed in the space right now?” That is a great question, and I´m afraid that the answer is rather boring. Now, you might think that what we really need in the space right now is some kind of artificially intelligent, neural network based, 3d printing, drone based, Mars expedition. The truth is that the most important projects 80
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at this stage are really basic infrastructure projects; projects that are not very exciting. They are not about the latest ICO for prediction markets on isolated tokens that are run by AI. Really, the projects that are most important, at this stage in this industry, are basic infrastructure. For example, exchanges, wallets, ATMs, and education systems. Let´s go
through those one by one. Now, you might think we already have enough of exchanges. But, one of the interesting things about exchanges is that they are very much attached to a local culture, a local language and a local set of regulations, especially when it comes to exchanging national currency for cryptocurrency and back. We really need on-ramps
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and off-ramps in order to have enough liquidity and activity. This [cryptocurrency] economy is not yet self-sustaining. It cannot operate entirely within the cryptocurrency domain. I think one day will be, but not yet. So, exchanges are necessary and you can´t build and exchange that covers every country. In fact, almost all exchanges are very specific to one country. So, if you think about it from that perspective, there´s a 194 countries and every country needs 3, maybe 4 exchanges, to have a healthy dose of competition. That´s about 800 exchanges worldwide for specific countries, not counting specialist exchanges, virtual currency exchanges and various other permutations on that idea. We´re still quite far from that goal. I remember the days, when in fact, there was one exchange and that was Mt. Gox, and we all were having difficulties with latency and lag time when trading, and security and all kinds of other problems. Fortunately, nowadays we have a wide open space. Next exchanges I would say ‘wallets’. Wallets are the front end of this industry. This is the part that interacts directly with
users. Users who are new and their first experience with cryptocurrencies will be through a wallet. This is the first interface they´ll know. If that interface is easy to use, if it´s easy to use securely, if it´s intuitive and easy to understand, then they´ll be able to more easily use this new technology. If the user interface sucks, if it´s confusing, if it causes security problems, if it has problems with certain features, if it´s not using the latest technology, then users will have difficulty using cryptocurrency. So, wallets are really, really important and wallets are really, really difficult. They require a lot of user design and user experience. They require the latest cutting-edge technology. You know, right know, for example, we have all these new technologies that are enabled. For example, in Bitcoin or in Ethereum you have all of these ERC-20 tokens and you know, the state-of-the-art moves very very fast. Let´s look at Bitcoin. SegWit was activated August 1st (2017). At the moment, probably only a handful of wallets on Android, IOS and desktop support sending and receiving from SegWit capable addresses. Even those are still using
addresses wrapped in P2SH, the ones that start with a 3, not using the new SegWit-native batch 32 addresses which start with BC1. Now, that, again, is a matter of adopting the new technology. Not many wallets adopt technology to handle fees gracefully replaced by fee child pays for parent, pumping fees and things like that; fee estimation technology. All of that really happens at the wallet level. If those things are easy to use in a wallet, then users can take advantage of these new technologies, and if your wallet doesn´t support them you can´t really use them. All right, and finally other forms of infrastructure. ATMs I think are quite important. The ability to buy cryptocurrency for cash. Now, if you´ve ever used a Bitcoin ATM for example or another cryptocurrency ATM, you´ll know they often don´t work. You go up there and the system is out service or it has problems handling fees. Again, these are matters or maturity, or you might be shocked at how big the premium is for the convenience of being able to pay with cash and instantly transact with cryptocurrencies. So, you know, ATMs are still and evolving space. Core Magazine
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Drew asks the next question: “What is the next big upgrade in Bitcoin development? Will we see Schnorr and MAST in 2018? What is {Bitcoin] Core [Development Team] focusing on next?” We will see MAST, first, and Schnorr will come I believe second. But MAST, which is Merkelized Abstract Syntax Trees, which is a form of Pay to Script Hash (P2SH), but it is a Pay to Merkle root hash. Pay to Merkle Roots type construct and script allows you to have a very complex set of conditions implemented in a script where each of the conditions is a leaf on a tree. What you actually store in the transaction is only the root of the tree. When you try to spend it you can present just a branch that you´re spending plus a proof that shows that it was part of the tree, without showing any of the other information. It has two major benefits. One is that it allows us to do a log to an improvement on the size of the Redeem squares that go into inputs and spend transactions. That´s a big optimization which will allow for more efficient useful multisig, as well as the possibility 82
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of doing much more complex scripts without making the actual transaction size massive. The second big advantage is that it enables you to have a lot more privacy. Because if there are a complex set of conditions in how you can redeem a transaction today, then, at the moment you have to show all of those conditions as one redeem script, any time you spend from that address. With MAST you only show the condition that you are using to spend, and the other conditions that may exist are invisible. No one knows how many conditions exist. No one knows how complex those conditions are or what kind of keys they require, so that increases privacy. In fact, we can also see the possibility of implementation of MAST in some of the more complex multi-clause scripts like Lightening network, so the MAST could be used, I think, fairly quickly to even optimize the size of Lightning transactions. MAST was finalized as a series of three Bitcoin Improvement Proposals (BIPs). Maybe about a month or two ago, the three Bitcoin improvement proposals are… I don´t remember the numbers exactly but, I think 98 was the first one which defines a new
type of Merkle tree, slightly different from [unintelligible] uses in blocks, which is a fast Merkle tree that has some security considerations that are particularly interesting in the case of MAST. So, an improvement on the Merkle tree data structure. The second one is the specification of MAST itself, and I think the third one is the upgrade mechanism, which is to use a bit-eight signaling on a previously unutilized opcode. Long story short, MAST specification is ready. The first implementation as a pull request to Bitcoin core for this new MAST specification including its soft fork activation has already been submitted to Bitcoin Core last week. So, this is now not just specification but also implemented code which is ready to go in probably for testing on test nets in the first stage and it is going to be in early 2018 I believe. Schnorr signatures and signature aggregation are the most likely things to come immediately after that because of the optimization capabilities they have. Although the other possibility is some kind of side change/drive change that allows you to do two-way pegs by evaluating basically an SPD proof within the script,
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we´ll see. Oh yeah, MAST actually also implements tail call semantics, which is a very interesting development which I´m going to explain at a later point and I think that might be also helpful for doing SPD proofs. And yes, I do think the block size will go for one megabyte. In fact, right now the block size is over one megabyte. SegWit was a block size increase, but I expect we´re going to see additional block size increases, including ones implemented with a hard fork. That´s part of the roadmap of (Bitcoin) Core as well as other development organizations that are working in this space. I think, eventually, we will achieve a point where we have consensus to do a reasonable base block size increase, in order to leverage that’s in the second layer, or third layer. Next one up is Bitcoin roadmap asked by “trolls”, and… that´s how I pronounce the name that I see here. It´s T R o e L S pronounced “trolls”. He says: “I find it very hard to get an overview of the Bitcoin roadmap. As Bitcoin is decentralized, I guess it´s harder to make a road map, but where and how do the Core Dev Team suggest new features and
how to see if they go into an update or soft fork or a hard fork?” You know, there´s two places where you can keep up to date, at least from my perspective, those are the two places where I keep up to date. One is the Bitcoin developers’ mailing list, and that mailing list is hosted on the Linux Foundation and it´s open to anyone. You can subscribe and watch the conversations. There´s some conversation on there that is relevant where you see some of the developers who are developing new features and capabilities. They make proposals, they have discussions and those discussions happen by email. There´s also quite a bit of noise as various people come in and… let´s say you introduce various crazy ideas that don´t really have much traction. The other place to follow is the GitHub repository. So, the GitHub repository for Bitcoin Core if you follow the pull request, the issues and the conversations there, then you can see the immediate short-term roadmap of what is happening in terms of updates to the software.
There is a lot of activity going on. So, that´s the advice I would give. There is a software roadmap and It´s developed by consensus. There are a lot of people who have a lot of opinions and a lot of discussion going on, and you can see how gradually something that starts off as an idea or suggestion. For example, at the moment, one of the interesting ideas being discussed is a system called “Tap root” or “[unintelligible] root”, which are systems for combining Masked Merkilized Syntax Trees with kind of a default script that looks like a public-key payment in such a way that you can´t differentiate between transactions that are complex scripts and transactions that are simple public-key payments. It´s a new privacy enhancement… very, very interesting. A lot of conversation happening on the Bitcoin developers’ mailing list, but that kind of thing is very very far from code and a pull request. It might be here before we actually see code around, who knows.
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GMO Reveals Bitcoin Mining Venture Raked in Millions, Plans to Become Major Industry Player
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apanese IT firm GMO Internet has recently published a report detailing the initial results of the Bitcoin (BTC) and Bitcoin Cash (BCH) mining operation the company launched in December 2017. According to the report, the 84
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organization already raked in millions from mining Bitcoin, and plans on becoming a major industry player by scaling its Bitcoin mining venture.
BTC, 124 BTC, and 287 BCH in December, January, and February respectively. This means it mined 217 BTC, at press time worth over $2.26 million.
GMO’s report details that the company has mined 93
The mining venture’s revenues were seemingly not
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Bitcoin mining venture to offer cloud mining service
Last month, the company has also announced it plans on launching a cloud mining service, which allows users to purchase a specific amount of hashrate that the company will then manage.
enough for GMO, as the company announced its goal is to scale from its current 108 PH/s to 3,000 PH/s this year. The company’s report reads:
“Hash rate is an important indicator for estimating our mining share. Our goal is to see the hash rate reach 3,000PH/s this year. Our mining share depends on the market’s total hash rate, so increased hash rate does not necessarily lead to
increased reward.”
mining
According to blockchain data, the Bitcoin network currently boasts a hashrate of 25,000 PH/s. If GMO succeeds in getting to 3,000 PH/s, this means it would own one of the biggest cryptocurrency mining operations, rivaling ViaBTC’s mining pool, which currently accounts for roughly 13.4 percent of the network’s hashrate.
GMO is reportedly targeting clients with deep pockets, as a two-year Bitcoin mining contract is said to cost about $5 million, plus maintenance expenses. The cloud mining service will presumably help the Japanese IT firm reach its 3,000 PH/s goal. Bitcoin mining is notably becoming a popular venture. As covered by Core Media, two Australian Bureau of Meteorology employees are being investigated for using government computers to mine. This, after Russian scientists were found using one of the country’s most powerful computers to make a profit. Francisco Memoria franciscom@coregroup.info
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Monero Cryptocurrency Platform, Privacy For Those Who Care Privacy-Focused Monero Aims To Protect Personal Information
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udging from how often we read software user agreements , how we freely give away personal 86
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information online, one could conclude that most people would not be bothered about the importance of privacy. However, if you consider privacy a priority, then Monero is likely to rank high on your list of preferred cryptocurrencies.
Monero also ranked 10th by market cap with 5.79 billion dollars on coinmarketcap. com on 5th March 2018. On the same day, it was trading at a price of $ 367. This is 25.8% lower than the previous all-time high of $495. The
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picture is still not a gloomy one, since the price has been steadily recovering since the dip in cryptocurrency prices in January 2018. The recovery is likely fueled by the expectations of free coins, if the proposed “Monero V” hard fork of Monero is successful. Also, with about 25,956% increase in price since may 2014, the long-term holders might still be content.
How Monero Offers Privacy
a transaction is concealed. Whiles stealth addresses hide the recipient’s address, ring Signatures hide the sender’s address. This is done by “mixing” information on funds being sent by a user with that of other funds being sent on the blockchain. This process is carried out in a manner that makes it impossible to determine which source of funds is the real one.
Every now and then, cryptocurrency prices tend to pump for no apparent reasons. However, it is usually projects with useful innovations and sound technology that stick around and still do well in terms of adoption and price. Monero has both the innovations and sound technology. Notably, Stealth addresses, ring signatures, and ring confidential transactions are all in the Monero bag of privacy tools.
With ring confidential transactions being introduced in January, 2017, the exact amounts involved in transactions are obscured as well. All these processes take place without compromising the verification of transactions or prevention of double spending of coins. In the end, what we get from these tools are transactions that are completely concealed and cannot be traced. Hence, giving users complete anonymity and privacy, while making Monero truly fungible.
Stealth addresses are provisional addresses that are created to act as a recipient’s address when Monero’s XMR token is sent. That is to say that the actual recipient’s address would not be exposed in the blockchain history. This way, information on the receiver of
There is more though. Coming up is Kovri. With Kovri, Monero would be going the extra mile to provide users more security. The project is currently being developed, but promises to help detach transaction IDs from IP addresses and guard against node
partitioning attacks amongst others. This layer of security is an application of the invisible internet protocol (I2P). I2P aims at facilitating the anonymous use of the internet.
Comparing Other Privacy-Focused Coins
Monero does not only provide privacy but makes it the default setting for all transactions on the network. This differentiates Monero from other privacy coins like Zcash and Dash where shielded or anonymous transactions are optional. Making anonymous transactions an option can lead to suspicion when it is opted for instead of transparent transactions. Consequently, people who seek optimum privacy are therefore more likely to choose Monero. A quintessential example is people transacting on the dark web. Monero has other things going well for its reputation in the cryptosphere. It had no special kitty of funds set aside from the total supply of Monero, but falls on donations from the community in order to make new developments. Even though such funds help new cryptocurrencies with marketing and paying develCore Magazine
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opers, they tend to be frowned upon in the cryptocurrency space. The number of developers working on the Monero platform is another plus. In fact, it comes third on coingecko’s developer score list. Only Bitcoin and Ethereum rank higher in this regard. Having more quality developers working on a project augers well for its reputation.
Everyone Can Mine Monero, Including Those Who’re Unaware
The technologies employed on Monero are mostly from the cryptonote technology from which monero originated. Cryptonote focuses on innovative features for anonymous cryptocurrencies. Lots of research goes into the development of the various cryptonote technologies. The cryptonight proof of work mining algorithm is one such innovation. This mining algorithm, which is used to mine Monero, makes it practical and profitable to use normal personal computers for mining by not giving specialized mining chips any advantage. This 88
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is a way of keeping mining decentralized. However, there is also the viewpoint that specialized mining chips called application-specific integrated circuit (ASIC) miners would eventually become necessary when a cryptocurrency gains more adoption and requires greater mining power. The fact that the cryptonight mining algorithm denies ASIC miners an advantage coupled with the anonymous nature of Monero creates the problem of cryptojacking. Hackers covertly use website user’s computers to mine monero. Core media reports on one such occurrence here.
Upcoming Hard Fork
As mentioned earlier, Monero’s recovery being better than most cryptocurrencies after the January 2017 crash could be attributed to Monero V. Monero V is an upcoming hard fork of the cryptoplatform that promises to place a limit on the total supply of coins and come out with solutions to help the network handle more transactions. According to the Monero V roadmap document, there would be a limit of 256 million coins instead of the infinite number
of coins planned for Monero. The news on this upcoming hard fork which is slated for 14th March, 2018 was not welcomed by all in the Monero community. Many have called it a scam coin and warned users to be careful. One cannot be careful enough in cryptoland. Being aware of the need for privacy and taking actions to protect our privacy is a good way of threading cautiously in this space. Monero definitely helps with that. Elikem Attah elikem@coregroup.info
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John Oliver's Detailed Program on Crypto Gambling or Investing
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lthough comics do not usually spend time explaining complex concepts, they are usually into politics. Also, politicians are one the easiest of the targets, because the audience can relate to 90
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political jokes and it is often easy to create content around them. However, John Oliver took a different take at his recent program about crypto gambling or investing.
The HBO Show on Crypto Gambling or Investing
HBO aired John Oliver’s program on crypto gambling or investing was a fairly decent attempt to explain complex
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cryptocurrency technology concepts. The program started with John Oliver stating that Bitcoin is everything that we do not understand about money or computers. He then gave an example of how many of us would not understand the concept of Bitcoin. However, he also talked about a typical guy in every office he named “Dan”, who would go to great lengths to discuss Bitcoin and other cryptocurrencies.
company could gather $35 million in just 30 seconds. Furthermore, his discussion covered people buying coins without thinking through the purchase or having any real purpose.
Current Challenges With Bitcoin Adoption
“I am not saying that every cryptocoin is a scam, just as I’m not saying that every blockchain company is bullshit. What I am saying is, in a speculative mania, it can be very hard to tell which companies are for real.”
Notably, while speaking to an audience, one of the most difficult things for any TV presenter is to address the elephant in the room. However, Jon Oliver did not shy away from stating the facts. Earlier in his show, he talked about Bitcoin not getting accepted at a Bitcoin conference, which is actually weird. The show also touched on the subject of fake ICOs that never materialized into an actual token or security. The reference was made to ICOs collecting millions of dollars and then disappearing. John Oliver also indicated how a
Besides talking about some fraudulent activities taking place in the crypto world, he was quick to dispel any notion that he was suggesting it was a scam.
This is where he discussed, in depth, crypto gambling or investing. Moreover, he clarified that if someone chooses to invest in cryptocurrency, they must know they are gambling and not investing. Also, he cautioned investors to remain vigilant and understand that prices could potentially go down.
Mindless Talk about Cryptocurrency Speakers in the Past
One of the most amusing parts of the whole video was the different speakers talking about their own coins and not knowing what they were actually about. For example, the recreation of the video from the once famous cryptocurrency platform, BitConnect.
So Is Cryptocurrency Gambling or Investing?
Well, it depends on so many things. There are those who, because of one reason or the other, think it as bad. However, when we think of blockchain technology as a whole, it offers a lot of hope to many industries. Therefore, we must try to look at at crypto-technology with a neutral perspective by looking at the use cases in which this technology can really help. Similarly, it holds a huge potential to revolutionize the old financial system that can match with the speed of other things in our lives. Farrukh Core Magazine
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Malkhi, VMWare Researcher, Says Ethereum's Casper Is "Fundamentally Vulnerable" Malkhi, VMWare Researcher, Says Casper Is “Fundamentally Vulnerable” Dahlia Malkhi, principal researcher and founding member of VMWare Research Group, recently stated that one of Ethereum’s most critical upcoming upgrades is “fundamentally vulnerable.” Malkhi, 92
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whose research organization specializes in computer architecture, distributed systems, and various algorithms, has several concerns about Ethereum’s Casper protocol. The prominent researcher expressed her reservations on Friday during the Financial Cryptography and Data Security 2018 event in Curaçao. While delivering the keynote presentation, Malkhi went over the various aspects
of blockchain technology. She covered the topic with the added context of how multiple nodes reach consensus, based on well-known computer science algorithms. Although the presentation covered many areas of technological development, Malkhi’s comments regarding Ethereum’s Casper captured the most attention.
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PoW vs. PoS: Basic Differences & Malkhi’s Comments Notably, there are a number of fundamental differences between Ethereum’s proposed proof-of-stake protocol and Bitcoin’s proof-of-work. For instance, the proof-of-work (PoW) algorithm makes use of vast amounts of electricity in order to verify transaction’s on Bitcoin’s network. Meanwhile, Ethereum’s proof-of-stake (PoS) algorithm is reliant on “a validator’s economic stake in the network”. What this means is that the nodes on a blockchain reach a distributed consensus by taking turns voting on the next block to be processed. The weight of each vote placed is determined based on how much a node has staked, or deposited. Proponents of this approach claim that it offers better security and a lot less energy consumption, while being less prone to centralization. Despite the various stated benefits of PoS over PoW, there’s a heated debate and argument over which is superior. However, up till now, a well-known computer science
expert and academician had not officially offered their opinion on this matter. Now that Malkli has come forward, her statements might have more credibility, given her solid background in computer algorithms. During her presentation, she said the following regarding Casper:
“I think [Casper’s] proof-of-stake is fundamentally vulnerable. You’re giving authority to a group to call the shots [...] In my opinion, it’s giving power to people who have lots of money.” Admittedly, this is a pretty weak argument considering she didn’t seem to go into much detail about just how Casper would cause inequality, and affect the balance of power on Ethereum’s network.
Essential Components Of A Crypto Algorithm, According to Malkhi
The few other pertinent
things Malkhi said about Casper was that it has contributed to “interesting” research related to cryptocurrencies and blockchain technology. According to her, this has even inspired further research into distributed systems, an area in which she has a lot of expertise. Moreover, the experienced computer scientist thinks that there are two main characteristics, namely security and “liveness”, that determine an algorithm’s legitimacy. Per the PhD professor, the security and “liveness” attributes of cryptographic algorithms are key in ensuring that transactions are processed correctly, and whether the blockchain system that implements them will be sustainable. Malkhi then went on to say that, “I had a conversation with [Casper’s lead developer] Vlad Zamfir yesterday. He argues, isn’t it still useful if it’s ‘mostly’ live?”
Crypto Algorithms That Are Implemented Lack “Academic Rigor”
In response to this, Malkhi says the short answer is “no”. That’s because she believes this type of approach exposes Core Magazine
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the blockchain to certain vulnerabilities. She then backs up her claims by stating that, “We have several decades of experience here.” Malkhi’s comments seem to suggest that not enough academic research has been done to support the assumptions on which these blockchain-based algorithms have been implemented. She then asserts,
“Seriously, it’s very easy to come up with a solution which is not live. It’s trivial. The only thing we need to do in this field is generate mechanisms that are both safe and live.” Based on Malkhi’s recent comments, she doesn’t feel confident that any blockchain that has been implemented so far
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meets the criteria or standards she has suggested. Nevertheless, she acknowledges that there are “solid foundations”, but more work needs to be done in this area. Her statements seem to have some similarities with what Mark Carney, Governor of England’s Central Bank, had to say about crypto-technology. As Core Media reported, “It [digital currencies] does point the way in many respects to the future of money, [but] this generation of cryptocurrency is not the answer.” Comments from both Carney and Malkhi indicate that crypto-related technology has shown some signs of future adoption, but is not ready to replace the current legacy systems, which have a long, proven, and established history. Omar Faridi
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New Entrepreneur-only Hotel Lets You Pay with Cryptocurrency
New Entrepreneuronly Hotel Will Accept Cryptocurrency
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n Singapore, a new generation of accommodation is being put to the test. Tribal Theory is introducing a new concept of hotel where the whole concept is to provide a sleeping space complete with access to an entrepreneurial environment of a co-working
space. Basically, Tribal theory is offering entrepreneurs who have a low budget to spend the night the possibility of meeting with other entrepreneurs while finding the right accommodation. That’s the idea behind Tribe Theory, a new “venture hotel” that specifically targets entrepreneurs and start-ups. And what’s best is that to get into the spirit of innovation, Tribe Theory, lets its guests pay with cryptocurrency.
Tribe Theory is carving out a new size of budget business accommodation by joining the charming climate of a hotel with the entrepreneurial atmosphere of a co-working space. According to CNBC, Tribe Theory hotel was officially launched this month. Beds are available from 35 Singapore dollars (around $26) per night and guests are welcome to pay in Bitcoin or Ethereum’s ETH. Vikram Bharati, Tribe Theory’s proud owner and founder said: Core Magazine
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“We have a lot of entrepreneurs who are broke but have cryptocurrency, so we’re happy to accept that”. Vikram hopes that this innovative concept can attract entrepreneurs, who travel to some of the world’s largest business centers, but typically don’t have the money to stay in a hotel. Notably, Tribe Theory is itself is the work of entrepreneurship. Vikram explains that his experience travelling across 50 countries, alongside his work in investments at venture capitalist firm REAPRA, gave him the know-how to start his own venture. Vikram stated:
(around $45,000) renovating the place.
The place Tribal Theory is a Hotel concept that specifically targets entrepreneurs and start-ups. The hotel features a coworking space on the top floor, alongside basic amenities such as free wifi, laundry service, complementary breakfast, and newspapers. Moreover, the place is made up of shared dorm rooms. The rooms have capsule beds and all the place is also scattered with inspirational quotes to get a creative atmosphere flowing. The venue has a great location as it was once owned by one of Singapore’s earliest entrepreneurs and sits around the corner from the city’s former millionaire’s club.
“We built everything by hand. We wanted Tribal Theory is now testto do that in the spirit ing various business strategies, of entrepreneurship.” and Vikram believes that his The entrepreneur goes on explain that he started the business with the help of his wife and backing from REAPRA, his previous firm. After gathering the needed funds, Vikram took three months to launch this initiative, and spent about 60,000 Singapore dollars 96
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venture will naturally reach its target market and eventually expand. Next year, Vikram aims to launch four more Tribe Theory hotels in major business centers: Hong Kong, Tokyo, Berlin and Estonia. And by the end of 2019, Tribal Theory is already targeting 10 cities across 10 countries.
Vikram stresses:
“What we’re trying to do is create a community. So, not just provide an affordable capsule, but also create a place where people can engage with other entrepreneurs from around the world. The value is that someone from Kazakhstan can meet someone from London and collaborate on business together, which really is very hard to do in co-living spaces or hotels.”
Hotels in Singapore cost an average of around $180 per night last year. Tribal Theory is offering a place to stay among entrepreneurs for less than half, and even better, customers can pay with bitcoin. If everything goes well, the concept will likely spread and soon we should be seeing Tribal Theory expand to major business centers. Nuno Menezes
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VERGE (XVG) | A True Privacy Coin? Verge (XVG)
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erge’s XVG is one of the most affordable privacy coins in the cryptocurrency market at the time of writing. What sets Verge apart from the rest of the privacy-focused cryptoplatforms? In order to
address this question, let us examine how this platform and its XVG token are different from other privacy coins. Also, does it live up to its name of “True Privacy Coin”? What is Verge? Privacy-focused coins have
been getting a lot of attention in recent months due to regulators tightening the noose around cryptocurrencies. Since it is more difficult to trace transactions executed using privacy-focused cryptos, a bigger market for privacycentered crypto-platforms like Monero, Zcash and Dash Core Magazine
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has emerged. Verge’s XVG also takes a place in the list of privacy coins, and it aims to provide privacy by concealing its users’ identity (hiding IP addresses) using Tor and also encrypts the users’ traffic using an anonymous overlay network called Invisible Internet Project (i2p). Verge’s platform is open source and was originally called DogecoinDark in 2014. “Dogecoin” was an “Internet Joke” and “Dark” gave it a negative image, so “DogecoinDark” was re-branded to Verge in 2016. The XVG coin started to rally and became a top-tier coin, mainly after John MacAfee tweeted about it and praised its privacy features. Later on, there was controversy when he retreated from his opinion.
What sets Verge apart? Verge’s current market cap is around 540 million dollars, with each token being priced at .036$ (at the time of this writing), making it the cheapest privacy coin in the crypto-market. It is unique from other privacy coins due to its implementation of the “Wraith Protocol”. The Wraith Protocol was first published in 98
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Verge’s “Blackpaper v3.0”. It was implemented in several phases across Verge-supported wallets and codebases when it was officially released on 9th January 2018. Wraith Protocol allows users to choose between a public and private ledger and this sets Verge apart from other privacy coins. It is similar to a toggle switch in that it enables users to select whether their transactions be made public or private. Based on the individual or entity’s use case, they can make a choice. Verge’s XVG stands out from the crowd regarding multi-algorithm support, allowing users to mine using different mining hardware and providing more security to the network. The five different hashing algorithms used are Scrypt, X17, Lyra2rev2, myrgroestl and blake2s.
How does Privacy work? Verge uses two essential technologies, Tor and i2p, to protect users’ privacy. Tor : Tor is an onion router that allows users to stay anonymous and away from surveillance. The Tor network has volunteered with thousands of
computer nodes, and the data travels in a random fashion across these nodes, as per the path laid out by Tor before reaching the destination server. This is what supposedly gives privacy to the Verge user. Invisible Internet Project (I2P) : I2P is a “True darknet”, and it encrypts the internet traffic by routing it through a distributed computers network across the world. Verge’s platform uses both Tor and I2p to provide users with physical security by hiding their IP addresses. This can potentially protect not only from government interference, but also from criminals demanding ransomware by looking into the blockchain of non-privacy coins like Bitcoin, and tracing them back to their physical location.
How to use the Privacy feature? There is no point in having privacy if the end user cannot use it, so the obvious best scenario is an ecosystem that offers users full support for privacy features. Verge’s XVG doesn’t seem to disappoint us in this aspect either, because the Electrum wallet provides
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native support for both i2p and Tor and makes user transactions private. Users can connect either with Tor or I2p using their Electrum wallet. Verge also has a Tor wallet for Android allowing coins to be easily stored and sent by using a QR code. You can even import the private key from a paper wallet using a QR code. In addition to all this support from external wallets and applications, Verge’s platform makes it easy for its users to transfer coins between Telegram, Twitter, Reddit, Steam and Slack using decentralized
platform integrated portals.
What are the future plans? Verge currently processes between 5 – 10 transactions per second, beating Bitcoin, and it is expecting it to reach 2000 TPS with the future implementation of RSK technology. RootStock (RSK) is a separate sidechain on Verge’s platform allowing it to scale, as well as conduct smart contracts on its blockchain. Verge’s network, in spite of having all these privacy features, the question remains: “Is it a true privacy coin?”. The doubt arises due to fact that
it displays the top hundred addresses in its blockchain explorer with balances and transaction details which defeats its anonymity. Also, the wallet’s UI doesn’t have a good look and feel, and a regular user might find it very difficult to navigate. The question remains regarding XVG and privacy. Only time will tell if Verge can beat the competition and truly become a prominent privacy coin in the long run. Kadhir Velavan Ramasubramaniam kadhir@coregroup.info
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Blockchain Technology For Telecom To Make Transactions More Efficient Blockchain Technology For Telecom
Two telecommunications companies, PCCW and Colt, have been conducting trials using blockchain technology to determine whether intercarrier settlement times can be made “more efficient, reliable, and scalable�. Both these companies represent the Interna100
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tional Division of Hong Kong Telecom (HKT) and claim to have developed blockchain technology for telecom, which would help to significantly reduce the time required to settle payments between different operators. This new tamper-proof blockchain technology for telecom has been used in the past to power the Bitcoin
network. Moreover, the use of this blockchain technology is not limited to the telecom sector. Blockchain experts believe that it will attract attention from other industries, particularly usages and applications in financial services and food security. Here is what PCCW Global CEO, Mark Halbfinger had to say about this blockchain
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technology for telecom:
to better handle this process, is to use a private, bilateral blockchain that will register transactions, and then report them to a public blockchain. Notably, test results indicated that processes which would usually take hundreds of hours to complete only took a few minutes. Furthermore, this approach could even automate settlement and verification.
“Everyone is talking about blockchain but the use cases in the telecom industry have been fairly limited until now. We are eager to demonstrate how the many potential uses of blockchain across our industry can The Proposed deliver exponential value by improving Proof-of-Concept Reportedly, this proprietary the ways in which we Proof-of-Concept technology interoperate.” offers advanced cryptography,
Experimenting With Blockchain
The two parties have already worked with Blockchain startup Clear to test this blockchain technology for telecom. They assessed its usefulness for telecom and settled wholesale voice minutes, which take a lot more time for the traditional operators, relying upon similar processes. Although a large sum of money is involved in this process, most of the telecom operators still use a manual process for completing it. This manual process is not only inefficient, but also more complex, time consuming, and inefficient. The proposed solution,
scalability enhancements, and multi-layer architecture. All these features, the companies claim, could help ensure security and suitability of blockchain technology for telecom industry. While discussing this initiative, Colt CEO Carl Grivner said that his company aims to deliver a blockchain technology solution that offers greater agility with a customeroriented approach. He also referred to blockchain as a “disruptive technology”, and said that it could “transform the way we conduct business in the telecom industry.”
IBM’s Work on Blockchain in Telecom
IBM is also working on the concept of introducing blockchain technology in telecom. The main areas of focus include the following: •
To streamline various internet processes which would help lower costs, offer faster throughput, and deliver a better overall experience • Develop quality services for customers which are based on blockchain. These services would offer support in identity management, mobile money, and conducting digital asset transactions. • To collaborate in business ecosystems for providing better trust, enhanced security, and more transparency. Omar Faridi omar@coregroup.info
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Billionaire Peter Thiel Is Betting on Bitcoin Becoming "Online Equivalent of Gold"
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acebook board member and PayPal co-founder Peter Thiel recently spoke to the press about the cryptocurrency space. The billionaire revealed that he is betting on bitcoin because one cryptocurrency may one day become the “online equivalent of gold,” and bitcoin’s size puts it in the lead. During the conversation at the Economic Club of New York, Thiel backed the idea of bitcoin becoming a store of value and not a go-to currency used to process daily transactions. To him, the cryptocurrency resembles “bars of gold in a vault that never moves.” This represents a “sort of hedge” against the whole world crumbling, and not a new payment system. He theorized that there is a 50 to 80 percent chance that bitcoin will have no value, and a 20 to 50 percent chance it will move up higher. Taking this into account, he stated:
“I would be long bitcoin, and neutral to skeptical of just about everything else at this point with a few
possible exceptions. Betting on bitcoin, There will be one not other cryptos online equivalent to While Thiel is clearly bullgold, and the one you’d ish on bitcoin and, potentially, bet on would be the Ethereum, he noted that other biggest.” cryptocurrencies might not The billionaire dismissed the idea of bitcoin being a bubble, stating that the objections most people have against bitcoin are the same most people would’ve had against gold. He added that “money is a bubble that never pops.” Thiel didn’t try to time bitcoin’s future ups and downs. He did, however, note that there’s a chance other cryptocurrencies like ethereum end up beating it down the road. Others, with better features, could emerge, but bitcoin’s size is its current advantage.
be good investments. Per his words, he wouldn’t encourage people to venture into investing in most cryptos.
As covered by Core Media, Peter Thiel’s Founders Fund invested between $15 and $20 million in bitcoin back in January, which at the time helped the cryptocurrency’s price recover from a small dip. Francisco Memoria franciscom@coregroup.info
At press time, bitcoin currently holds roughly 42.7 percent of the total market capitalization of cryptocurrencies, while Ethereum comes in second place with about 18 percent. Thiel said: “Gold continues to be gold because it’s the main asset class. Maybe it could be replaced by silver but it doesn’t seem to be happening.”
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Seagal's Bitcoiin Marked For Death by Bureau of Securities Bitcoiin wasn’t so hard to kill after all.
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here is coverage of Bitcoiin and Steven Seagal’s involvement as its ambassador here by core media. The initial coin offering (ICO) was called
out for having characteristics of a scam by many. It appears the New Jersey Bureau of Securities (BoS) got wind of this and decided to stop Bitcoiin before they even started. The team behind Bitcoiin has therefore been furnished with a cease and desist order.
What the cease and desist order says about Bitcoiin
A number of accusations are leveled against Bitcoiin in the cease and desist order. First, is that the BoS of New Jersey considers Bitcoiin a securities token. This is the case even Core Magazine
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though the Bitcoiin team did not describe their ICO as such. Moreover, the order states that information on the website of the BItcoiin ICO called on the general public to buy and sell securities. As a result, the team behind the ICO was in violation of the Securities Law which forbade the “fraudulent offering of unregistered securities”, as the document put it. Another concern raised by the cease and desist order was that the leaders of the project were unknown. The contact information on the website of the project was also not enough to help locate the team.
The SEC and celebrities endorsing ICOs The United States Securities and Exchange Commission issued a public statement on 1st November 2017 which touched on celebrities’ use of social media and other platforms to endorse ICOs. According to the statement,
“ These endorsements may be unlawful if they do not disclose the nature, source, and amount of any compensation paid,
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directly or indirectly, by the company in exchange for the endorsement.”
Steven Steagal made no such disclosures when making his endorsement. He is not alone in this regard. Other celebrities known to have backed or promoted ICOs are the boxer Mayweather, soccer star Cristiano Ronaldo, Paris Hilton and DJ Khaled. We can expect to see less of such endorsements in the future as regulators try to close in on “fraudulent” ICOs. Would we miss this Bitcoiin? This is unlikely. All the team has done is add an extra “i” to the Bitcoin name. Expecting their ICO to end well might be asking for too much. Here is one last question. Do we call this good riddance or a case of regulators overreaching? Elikem Kofi Attah elikem@coregroup.info
current.us
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KOMSCO Set To Introduce Blockchain-Based Payment Certification KOMSCO Set To Launch BlockchainPowered Payment Certification Business Korea reported on March 7th that KOMSCO is expected to introduce a blockchain-enabled Trusted Payment Certification platform. KOMSCO happens to be a government-run organization that is tasked with printing and minting banknotes and various other government-issued documents. Cho Yong-man, 112
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the corporation’s president, stated:
“We are planning to launch [a] Trusted Platform that provides services in the public sector such as safe payment and authentication as well as information protection and management services by the end of the second half of this year by combining blockchain with the trust that KOMSCO
has garnered in the sector.” Yong-man’s statements came during a Ministry of Strategy and Finance press conference that took place at Sejong’s Government Complex. According to reports, this project is part of KOMSCO’s larger research and development (R&D) efforts, which are aimed at improving its competence in emerging technologies. Notably, the state-owned corporation has a lot of experience handling Ko-
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rean currency, as it is the only organization that has printed the country’s banknotes since 1951.
The Fourth Industrial Revolution Over the years, KOMSCO has also managed 557 intellectual property (IP) patents related to anti-forgery. Now, the company intends to utilize them further for authentication purposes, protecting the brand identity of businesses, and channeling more funds towards R&D. Furthermore, it plans to collaborate with private-sector companies to launch various upcoming tech projects. These initiatives are part of what the country calls the Fourth Industrial Revolution. Although there are quite a number of differences in the way this revolution is described, a notable one posted a few years ago by Weforum states:
“The possibilities of billions of people connected by mobile devices, with unprecedented
processing power, storage capacity, and access to knowledge, are unlimited. And these possibilities will be multiplied by emerging technology breakthroughs in fields such as artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3-D printing, nanotechnolog y, biotechnolog y, materials science, energy storage, and quantum computing.” Even though this particular description of the Fourth Industrial Revolution does not specifically mention blockchain technology, it does capture the essence of the impact of globalization and the information age.
Blockchain Technology Headed For Mass Adoption
South Korea and KOMSCO are clearly not alone in acknowledging the vast potential of distributed ledger technology, while attempting to incorporate it into their existing business practices.
Moreover, UAE’s city of Dubai is planning to become what it calls the world’s first blockchain-powered government. One of Dubai’s main objectives is to create and manage all government documents using blockchain tech. Using this approach will dramatically cut down on costs associated with the inefficient printing of official paperwork, according to Dubai’s government. It appears that KOMSCO also thinks that using blockchain-based systems will significantly cut down the operational costs of routine government procedures. In fact, the corporation has stated that it is working on improving its productivity and its ability to compete in global markets, presumably by starting with implementing its proposed blockchain-enabled Trusted Payment Certification platform. Of course, as widely acknowledged, other government services could also be improved by using blockchain technology. Omar Faridi omar@coregroup.info
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Australian Bureau of Meteorology Staff Investigated Over Illicit Crypto Mining Operation 114
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ccording to the Australian B r o a d c a s t Corporation (ABC), two Bureau of Meteorology IT employees are being investigated by the Australian Federal Police (AFP) over an allegedly illicit crypto mining operation. The operation reportedly involved the bureau’s powerful computers. Per ABC’s report, police officers executed a search warrant at the bureau’s headquarters in Collins Street, Melbourne late last month. The officers questioned two IT employees, one of whom has since gone on leave. People with knowledge of the raid further revealed that the rest of the bureau’s IT team was told to go into a conference room and wait while the other two were being questioned. So far, no charges have been filed as the investigation is ongoing. Mining cryptocurrencies isn’t illegal in Australia, although mining them using the government’s computers is, as it could be illegal use of government resources. Both the bureau and the AFP declined to comment on the case. Chris Berg, from the RMIT
Blockchain Innovation Hub, told ABC that the employees could be using the government’s machines for various reasons. Among them, was either their computational power, or the fact that the bureau was covering the electrical bills.
when they find a new block. It’s unclear what cryptocurrency was mined using the bureau’s computers, if any.
Commenting on the illicit crypto mining operation, he said:
This is notably not the first time government employees use what they can to mine cryptocurrencies. As reported by Core Media, Russian nuclear engineers were arrested last month for trying to use one of the country’s largest supercomputers to mine.
“One possibility is that they’re trying to use some of the equipment that the Bureau of Meteorology have. The Bureau of Meteorology has some very fast computers. Another possibility, though, is that they’re just trying to get the Bureau of Meteorology to pay for the electricity. Mining is a very electricityintensive task and they probably didn’t want to pay for it themselves.”
Another illicit crypto mining operation
Back in January 2017, at least one US Federal Reserve employee was sentenced to 12 months’ probation and was fined $5,000 for using the Federal Reserve System’s server to mine bitcoin. The employee plead guilty to one count of unlawful conversion of government property. Francisco Memoria franciscom@coregroup.info
Berg went on to describe how cryptocurrency mining works. He mentioned bitcoin in particular, and the 12.5 BTC miners get as a reward Core Magazine
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Innovating in crypto news
Exclusive
Populous (PPT), Invoice Financing On The Blockchain Populous (PPT) Platform
P
opulous Platform
(PPT)
Populous aims to bring invoice financing to the blockchain and happens to be one of the highly ranked ERC20 tokens on CoinMarketCap. We could also say it brings blockchain technology to the 118
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invoice financing industry. I’m sure you catch my drift, either way. So, let’s find out what invoice financing is and how blockchain technology helps the industry. We will then look at how Populous tries to mesh these concepts together. Coinmarketcap.com currently places Populous at number 27, with a market cap of over $575 million at the time of this writing. The price
of each Populous token (PPT) is $15.66. Moreover, the price movements since Populous’ inception in July 2017 mimics that of Bitcoin and the entire cryptocurrency market.
What Is Invoice Financing?
Here is a simple breakdown of what invoice finance entails. Invoice Financing is one means through which companies gain
Exclusive
funds for day-to-day company affairs. Instead of waiting on accounts receivable, the accounts receivables could be traded for funds in the meantime. Such deals are good for companies since products sold on credit could be paid for much later. The buyers of said invoices/accounts receivable are known as factoring companies. Another way of going about this is to use invoices to secure loans to take care of routine company
affairs.
Great, But Why Does It Have To Be On A Blockchain?
Blockchain. a fairly new data structure that is a type of distributed ledger, is a truly revolutionary one. More and more people are realizing this as cryptocurrencies go mainstream. This has made “Blockchain” a buzzword
in recent times. Another implication is that there is ”Blockchain everything” now. Some of the implications of the technology are really world changing. However, not every aspect of our lives need the application of Blockchain technology. Here is why the fellows at Populous believe the technology is needed in the invoice financing industry. Among the reasons listed Core Magazine
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on the official website of Populous are the removal of high fees and other entry barriers to a market dominated by traditional financial institutions. Having an invoice financing marketplace on a Blockchain network would make the market a global and peer-to-peer one. There are also the security reasons. The implementation of smart contracts is another. Notably, participants in local invoice financing markets can reach global markets on the Populous Blockchain. Businesses in countries without such services can also have access to invoice financing. With a Blockchain, smart contracts can be executed in the invoice financing market. There would be integrated legal terms as well as procedures. One thing smart contracts do is reduce the need for trust. This can potentially minimize the chances of fraud. However, it must be added that, albeit being a good innovation, smart contracts could falter in certain situations where human judgment and common sense is required to correct an obvious error. Invoice financing on a blockchain also means lesser fees for deals made on the 120
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market. Due to the removal of entry barriers, more entities can partake in an invoice financing market on a blockchain. This would lead to lesser fees since participants on the market would not be a few established financial institutions that can command higher fees.
in two years and control measures for financial distress. By making use of this data on its platform, Populous is able to analyze information from various industries and detect opportunities and risks related to invoice financing on the platform.
Poken Token, XBRL Data, and Altman Z-score Formula
Populous’ Purporse
A global peer-to-peer blockchain like Populous’ involves transactions from all over the world. With participants from various countries using different fiat currencies, a common means of exchange is required. The Poken token serves this purpose. Pokens are pegged 1:1 to local fiat currencies and can be exchanged for fiat when withdrawals are made. XBRL international’s eXtensible Business Reporting Language (XBRL) standardizes financial statements from different jurisdictions. Used in conjunction with XBRL the Altman Z-score Formula by Edward Altman helps protect and preserve the financial health of a business. Additionally, It lays out the likelihood of a business going bankrupt
It seems that Populous could have some legitimate use cases in the financial sector. Using blockchain technology might bring improvements to how invoices are processed. Therefore, we should try to keep an eye on Populous, by monitoring its progress and continued development. Elikem Kofi Attah elikem@coregroup.info
Blockchain News
Grayscale Is Set To Launch Four New Cryptocurrency Funds Grayscale Plans To Launch New Cryptocurrency Funds
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rayscale, the company that launched the first tradeable Bitcoin Investment Trust back in 2013, has revealed that it is about to launch four new cryptocurrency-based investment funds.
Notably, Grayscale was founded in 2013 and was established by the Digital Currency Group, a financial organization that makes investments in digital currency-related financial endeavors. The company also launched the first ever bitcoinrelated hedge fund, with the GBTC ticker, back in 2013. Moreover, Grayscale believes in the success of cryptocurrencies and their potential to disrupt financial markets.
The company wrote on its web page:
“Digital currencies are poised to radically transform our financial system, but it won’t happen overnight. At Grayscale Investments, we believe investors deserve an established, trusted, and accountable Core Magazine
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ing period for all investors. partner that can help Michael Sonnenshein, said: Furthermore, investors will be them navigate the “It is our belief that required to hold these funds grey areas of digital digital currencies as an for more than a year, before currency investing. asset class has not only they can sell their holdings That’s why we are arrived but are here to without any restriction. building transparent, stay. Consequently, familiar investment These four new trusts will we are committed to products that be added to a multi-crypto inproviding investors vestment fund, called the Digifacilitate access to with structures tal Large Cap Fund, launched this burgeoning asset that enable them to by the company last month. class and provide the participate in this While Digital Large Cap Fund springboard to invest provides an investment option exciting asset class.” in the new digital for a suite of cryptocurrencies, c u r re n c y - p o w e re d each of the four trusts will speGrayscale internet of money.” cifically focus on its individual With the rising popularity of digital currencies, Grayscale has decided to launch four new hedge funds, linked to four other major cryptocurrencies. The four new crypto-funds are: the Ethereum Investment Trust, Bitcoin Cash Investment Trust, Litecoin Investment Trust, and XRP Investment Trust. As expected, the funds will be focused around each of the virtual currencies with which they are associated. Additionally. Grayscale announced that it’s planning to establish and launch several more similar related funds this year. In an interview with CNBC, the managing director at Grayscale Investments, 122
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Investment methodology
Grayscale’s four new crypto funds operate as trusts that follow a rule-based methodology, which focuses mainly on the liquidity of the cryptocurrencies. Every quarter, the company makes an analysis of certain cryptocurrencies and checks if the currency in question has retracted to a 70 percent target of the overall market cap. This technique helps in determining the overall liquidity the asset has, according to Grayscale. Given that the funds are operated as trusts, the only investments allowed are from U.S.-based, qualified, and verified investors. There’s also a mandatory one-year hold-
crypto-asset.
With this move, Grayscale is trying to expand its customer base worldwide by offering “Wall Street Traders” the chance of indirectly investing in various cryptocurrencies without having to get involved with the digital asset itself. Nuno Menezes
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SEC Subpoenas TechCrunch Founder’s $100 Million Crypto Fund SEC Subpoenas TechCrunch Founder’s $100 million Crypto Fund Michael Arrington, founder of TechCrunch, a blog site focused on the latest technological developments worldwide, has been subpoenaed by the U.S. Securities & Exchange Commission (SEC). The
subpoena, which has called into question the tech entrepreneur’s $100 million crypto fund, appears to be linked to a wider probe into the business practices of the crypto-market in general. It seems that Arrington was actually supportive of SEC’s actions. That’s because, through a phone interview with CNBC, Arrington said,
“We received a subpoena. Every [crypto]fund I’ve talked to has received one. That’s fine. They just have to figure out what they want. They need to set up rules so we can all follow them, and the market is begging them for Core Magazine
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that.” So far, the SEC has declared that all ICOs are basically securities. Therefore, they need to be registered as such. Failure to do so could result in legal penalties, according to the federal regulator.
Lack Of Clarity About Cryptocurrency Regulations Notably, the SEC has put in a significant amount of effort into researching and investigating the digital currencies market and technology. However, since this nascent technology is still in its infancy, the U.S. regulator is just beginning to learn about it, along with the rest of the world. That’s why there is still a lot of ambiguity as far the exact rules and regulations pertaining to various types of business activity involving cryptocurrencies. For example, it’s not quite clear if and how established securities laws apply to virtual coins. Moreover, the SEC has stated that regulations are applicable, but has not yet clearly specified just how they can be enforced in a formal manner. 124
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As a result, crypto-related companies have had to resort to self-disclosure and some have also consulted lawyers to help represent them professionally. Quite often, even lawyers aren’t sure just how to properly draft the proper legal paperwork to show that the crypto firm is legitimate. Due to these complications and lack of clarity about crypto regulations, many crypto startups have chosen to exclude American investors from using their services.
Numerous Subpoenas Issued By the SEC Arrington’s crypto fund is not the only one subpoenaed by the SEC. As the Wall Street Journal reported on February 28th, the federal regulator has subpoenaed a number of crypto-related businesses as part of its extensive probe. While the Wall Street article didn’t mention any companies in particular, it has been widely reported that Bitfinex and Tether were subpoenaed recently regarding their crypto-related activity. For the most part, SEC’s subpoenas have demanded information related to the sales structure of ICOs, including their pre-sales. Furthermore,
these subpoenas have been sent out from SEC’s offices in Boston, New York, and San Francisco, as noted by Jason Gottlieb, partner at law firm Morrison Cohen. Gottlieb’s role has been to serve as the company’s head of its cryptocurrency litigation department. It is clear from these developments that there are no experts in the crypto industry who know everything, as it is rapidly growing and evolving. As everyone begins to learn more about this new technology, many of the problems and challenges we’re experiencing today should subside. Omar Faridi omar@coregroup.info
Blockchain News
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China’s Central Bank Governor Warns Against Cryptocurrency Speculation
China’s Central Bank Governor Is Critical Of Crypto Speculation
Zhou Xiaochuan, Governor of the People’s Bank of China, stated on March 9th that his country is not so eager to quickly launch its own cryptocurrency. During a press conference that spanned Two Sessions, which are part of China’s yearly political briefings, Xiaochuan said that the development of a digital cur128
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rency requires careful thought and attention to detail. Furthermore, he stressed that the country should stay away from “excessive speculation.” Speaking in more general terms, the prominent economist remarked,
“We don’t like the idea of creating a speculative product that prompts people to fantasise about striking it rich
overnight. This is not a good thing.
Notably, these comments have come after China’s government embarked on a nation-wide cryptocurrency crackdown. The heightened government scrutiny focused primarily on clamping down on the trading that occurs on centralized digital currency exchanges, and more recently, on overseas cryptocurrency activity. Although crypto-related business that happens outside of the nation’s borders is not in its jurisdiction, the Chinese
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government asserts that it has a right to monitor international crypto-markets. That’s because it claims that these crypto-related services are still accessible to its citizens.
China Poised To Become The World’s Largest Economy
Keeping China’s $11+ trillion dollar economy in mind, Xiaochuan said that “We must prevent major mistakes that would lead to irreparable losses, So we are cautious.” Moreover, the Chinese economy has grown very rapidly over the years. In fact, in 2002, it was only the world’s 6th leading economy, but since then, it has climbed to the number 2 spot, still behind the $18+ trillion U.S. economy. However, it is expected to overtake the United States, and become the world’s largest economy in the next 15 years. Given this impressive economic growth, it is understandable that China would want to sustain this level of growth. There’s clearly no need to get involved in unnecessary risks, including those related to cryptocurrencies and their related technology. which the Governor summed up as fol-
lows:
“For blockchain projects with technological potentials, they should conduct thorough testing before rolling out services. Otherwise, a reckless expansion may incur serious security and financial stability issues. Lots of cryptocurrencies have seen explosive growth which can bring significant negative impact on consumers and retail investors.”
Avoid Thinking Of Cryptos As A Way To “Get Rich Quick”
Xiaochuan’s comments regarding the “negative impact” of cryptocurrencies was in reference to the excessive and harmful speculation that investors can be prone to engage in, hoping to get “rich overnight.” The governor’s comments seem reasonable, as even wellknown crypto experts, such as Ethereum co-founder Vitalik
Buterin, have recently said that cryptocurrencies could drop to “near zero” value. Therefore, Buterin has gone as far as suggesting to maybe not “invest” in cryptos at all, or only as much as you can afford to lose. Instead, he has suggested that traditional assets are still the best place to keep channel your savings. Additionally, the expert programmer has called on the crypto-community to learn more about the benefits and practical uses of the nascent crypto-technology. He, in addition to many other cryptoexperts, have also noted that crypto and blockchain tech need to drastically improved, particularly their overall security. Given that the crypto industry is still in its infancy, China does not need to act desperately when it comes to adopting this technology, especially since it has a very sound and thriving economy. The country can afford to take its time and thoroughly test, evaluate, and improve upon the existing crypto-tech, as Xiaochuan has suggested. After all, we’ve all heard of the saying: “haste makes waste.” Omar Faridi omar@coregroup.info Core Magazine
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Coincheck's Stolen NEM Tokens Traced to Crypto Exchanges in Canada, Japan
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arlier this year, Japanese cryptocurrency exchange Coincheck was hacked for roughly $534 130
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million worth of NEM in what was described as the “biggest theft in crypto history.” Some of the stolen tokens may have now been
traced to cryptocurrency exchanges in Canada and in Japan. According to researcher BIG Blockchain Intelligence
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a combination of blockchain data with proprietary “know how” in its investigation. He said:
“We felt it was a significant amount that warranted looking into. They are trying to move it before the door is closed, but there is a lot to move.”
Group, some of the funds were sent to a Vancouver-based cryptocurrency exchange. There, they are being converted to other cryptocurrencies, meaning the hacker(s) are cashing out. Shone Anstey, BIG’s president and co-.founder, refused to reveal the name of the exchange, the amount of stolen tokens that ended up in there, or where they were then going. As Bloomberg reports, Anstey revealed his findings were sent to law enforcement. Per his words, it was the size of an NEM transaction that allowed BIG to get to the Vancouver-based exchange. The company reportedly used
On the other hand, Akahata, the newspaper published by the Japanese Communist Party, claims 24 million NEM tokens ended up on Japanese exchange Zaif. Zaif, according to available data, is currently the biggest NEM market with 26.9% of the trading volume in the last 24-hour period. Following the heist, the NEM development team added a tagging system to alert cryptocurrency exchanges the funds were stolen. The tag stated “coincheck_stolen_ funds_do_not_accept_trades : owner_of_this_account_is_ hacker.” At the time, Coincheck identified 11 addresses belonging to the hackers, and they were all tagged.
Cryptic message found in NEM transactions
The tagging system would easily allow cryptocurrency exchanges to prevent hackers from cashing out. Out of the 11 identified addresses, 6 have been moving small amounts of NEM since January. The transacted amounts range from 1 to 10,000 tokens. Some of these transactions seemingly carried a cryptic message, which according to Bloomberg, is written in “awkward Japanese.” The message reads:
“This purchase is to determine the bitcoin address of the criminal, insist that the purpose is not for self profit.” The other 5 addresses have been making large transactions of up to 20 million NEM. Some of these transactions likely ticked off BIG. Francisco Memoria franciscom@coregroup.info
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Eco Coin, Developed By Uber Co-Founder, Has Ambitious Goals Eco Coin Is Being Developed By Uber Co-Founder
Garrett Camp , co-founder of web discovery platform StumbleUpon and the Uber transportation network, recently announced plans to launch his own cryptocurrency. The digital currency will be called Eco coin, and Camp would like for it to be used as a convenient way to pay for everyday expenses. To start, the Canadian businessman and in-
vestor wants to issue 1 trillion tokens. According to Camp, half, or 50%, of the tokens will be given to the first 1 billion verified users. 20% (200 billion) of the remaining tokens will be disseminated to universities and researchers operating trusted/ verified nodes. 10% will be offered to advisors, another 10% will be given to strategic global partners, and the final 10% will be issued to the Eco foundation. Notably, Camp has set up
the Eco foundation to develop and manage the Eco coin’s network.
Privately Funded Crypto Project
In order to provide his crypto-project a solid foundation, the Uber co-founder and a few of his close business partners have decided to donate $10 million. These funds will reportedly be used to pay for the project’s initial operating costs. Typically, crypto ventures Core Magazine
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of this type have involved the launch of an ICO. However, the Eco coin will not be funded through an ICO. There could be several benefits to this approach. Perhaps the most obvious one is not having to deal with all the legal issues that ICOs usually face. Moreover, people have become increasingly wary of ICOs due to the large number of scams that have been orchestrated through them. In response, regulatory authorities have begun to closely monitor and scrutinize crypto-related startups seeking funding through coin offerings. Therefore, if the Eco coin project can manage to fund itself privately, then it could avoid a lot of potential problems.
Eco Coin’s Whitepaper
Eco coin’s whitepaper notes that there are currently some serious issues associated with major cryptocurrencies. For instance, Camp doesn’t like the idea of allowing anonymous nodes to operate on a crypto’s blockchain, which is basically what the Bitcoin network has. Instead, he wants all the nodes on Eco coin’s platform to be verified. 134
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Although this type of implementation eliminates the risk of 51% attacks, it does so at the expense of not being completely decentralized. Additionally, having 1 trillion tokens, as Camp proposes, could make the Eco token more appealing to users. That’s because the USD to Eco token conversion rate would be significantly lower than that of Bitcoin. Furthermore, the Uber co-founder might even be planning to make Eco coin more accessible to users who are not very tech-savvy. Another key feature that this coin could have is being more energy efficient. This would be, as Camp points out, due to the absence of nodes (miners) that consume vast amounts of electricity just to confirm transactions and generate tokens.
Ambitious Goals Set By Eco Coin Developers
If the electricity consumption can be minimized, then this could translate into longterm success for the Eco coin project. The reason for this is that major cryptocurrencies consume way too much energy. In fact, the Bitcoin network uses over 32TWh every year.
This is approximately equivalent to the electricity consumption of an entire country, such as Denmark. Some researchers estimate that, by 2020, the Bitcoin network alone could consume as much energy as the whole world combined. Clearly, this doesn’t sound sustainable. Based on what Camp has proposed for the Eco coin project, it’s certainly a very ambitious initiative. However, if and when it’s successful remains to be seen. Even though Camp has achieved phenomenal success with Uber, that doesn’t mean that this project will also follow in the same direction. After all, both of them are totally different concepts. Omar Faridi omar@coregroup.info
Blockchain News
Monero Software Update Could Make Bitmain's ASIC Miner Useless Monero is in the news lately due to an upcoming emergency hard fork on 28th of March, at the block height of 1,539,500. This is basically a hard fork, without creating a new coin and only for adding new features and upgrading code for better performance. Notably, some interesting news has surfaced today regarding how this
hard fork will make Bitmain’s ASIC mining equipment useless. Let’s see this development in detail.
Monero’s upcoming hard fork:
Monero team is planning a forced software update to im-
prove and introduce some new features like Sub-addresses, Multi-Signature, and Monero GUI upgrade to its platform. The upgrade was scheduled during mid-March and then postponed to 28th at the block height of 1,539,500. The interesting modification that the team is proposing is changing the CryptoNight Proof of Core Magazine
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work algorithm during this fork and they will continue to do it every scheduled fork, twice a year. The modification is significant since it will make mining of Monero “ASIC Resistance”. Asic Resistance means special mining equipment, with a high-performing or specialized chip, cannot take advantage and mine efficiently over other ones that use a less efficient CPU or GPU.
Understanding ASIC
ASIC (application-specific integrated circuit) is a special kind of chip in mining hardware that is used to mine Bitcoin and other cryptocurrencies. Moreover, ASIC is generally more advanced and more powerful than CPU, GPU, and FPGAs, and it has a significant edge over other devices in the mining race. ASIC-enabled mining equipment is capable of outperforming other equipment in terms of speed and efficiency in finding the blocks. The miners who were using this were making huge profits since they were working with superior computational power.
Bitmain’s Monopoly in Mining
Bitmain, a Chinese min-
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ing hardware manufacturer, has what can be considered a monopoly in manufacturing ASIC mining equipment, since they have patented it. They also maintain about 50% of the mining hash power of the overall Bitcoin network. This has led to Bitmain becoming more powerful and highly profitable due to the advantage they hold in terms of their highly efficient mining hardware. However, this has centralized the process of Bitcoin mining, taking away the mining power from the “common man”.
Monero’s Proof of work change
To counter Bitmain’s monopoly, Monero’s developers are planning to change the Proof of work in its CyrptoNight algorithm. CryptoNight is simply the mining algorithm used in Monero, and it is because of this algorithm that we are able to enjoy the benefits of privacy and perform transactions confidentially. The proposed change, as per their blog, will help in preserving the ASIC resistance. In other words, the change will discourage ASIC miners from mining Monero. Monero’s official blog also states:
“Emergency hard fork will help in maintaining its goal of decentralization and to provide a deterrent for ASIC development and to protect against unknown or undetectable ASIC development.” Furthermore, ASIC miners might only help the rich get richer, ultimately leading to the centralization of mining, that we are currently witnessing in Bitcoin’s ecosystem. This also creates a single point of failure, if the government seizes the mining pools or due to any natural calamities, the mining would get affected resulting in significant loss of hash power. It is always advisable to have mining geographically decentralized to avoid the single point of failure and potential 51% attacks. This is the main reason why Monero’s team decided to bring up this PoW change to prevent it from being mined by ASIC miners.
Bitmain shipping ASIC for CryptoNight
Contrary to the Monero’s PoW change that will nullify ASIC, Bitmain has surprisingly announced that they will be shipping ASIC miners compatible with the CryptoNight algorithm from May/
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June. The equipment will not work and it will not be able to mine Monero due to the ASIC resistance feature that is going to be incorporated in the upcoming fork. Bitmain didn’t anticipate this PoW change and they have started to manufacture for Monero’s algorithm, but unfortunately, it is highly unlikely that it will work effectively and just might be useless Below are some strong twitter reactions from “Fluffy Pony”, the creator of Monero: “Just a reminder that Bitmain’s ASIC miner WILL NOT work on Monero”
was mining Monero secretly all this time, and they have started selling the mining equipment only after they have come to know of this upgrade, which will eventually nullify the ASIC miners. This could be a possible scenario and was evident in one of the tweets that stated:
“You’d be naive to not think BitMAIN has been mining with these for months, and are now selling them before they’re bricked on the most popular CryptoNight coin (Monero)”
The crypto space is becoming more political day by day. That’s why they say:
“There is no boring day in the world of Cryptocurrencies”. Kadhir Ramasubramaniam
Meanwhile, Whale Panda reacted strongly to this development as well:
“These will be bricked after the XMR hard fork with small PoW change in 13 days, so with them shipping them in May/June... Good luck, you won’t be able to use them for Monero.”
A Twist in the Story:
There is a small twist in this story. Imagine if Bitmain Core Magazine
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VeChain: Blockchain Technology That Tracks & Authenticates Products The VeChain Platform
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eChain (VEN) is a cryptocurrency platform founded by Sunny Lu in 2015, and its development team is based in Singapore. In 2017, the coin’s price skyrocketed from 5 cents to a peak of $10 (CoinMarketCap). During this time, the crypto world was in a frenzy and Bitcoin hit an all-time high of nearly $20,000. Since the end of 2017, the price of cryptos 138
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has generally declined, and currently each VEN is worth about $3.41. Since there are 478 million coins in circulation, this equates to a market cap of approximately $1.64 billion at the time of this writing. This makes VeChain the 17th largest crypto-platform in terms of market capitalization. Considering that there are thousands of different cryptos, this indicates that VeChain is one of the most valuable and popular crypto-platforms.
It is, therefore, important to understand the characteristics and qualities of VeChain, if you are a crypto enthusiast, investor, and/or trader. After all, what exactly is it about this platform that has led to such a large market share?
VeChain’s Architecture & Implementation Details VeChain is powered by a network of nodes scattered
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across the globe. Those who are running the nodes receive VEN as a reward for securing and maintaining the blockchain. The primary goal of VeChain is to provide a platform for digital authentication of real-life products, such as food, medicine, liquor, cars, agricultural supplies, etc. When a product is first created in a factory, it is labeled with a VeChain Identity (VID). The VID is created using the SHA-256 algorithm, which turns the string of text associated with the VID into a 32 byte cryptographic hash, and inserted into a Near Field Communication (NFC) tag, Quick Response (QR) code, or Radio Frequency Identification (RFID) tag. This way, the product can be tracked every step of the way, from the factory to the end user, simply by scanning the VID with the VeChain app.
is stored permanently on the VeChain blockchain, so it can never be altered. This is perhaps the first truly decentralized way to track the authenticity of goods, according to the platform’s developers. Its designers also claim that it is a legitimate system for preventing fraud via mislabeling or misrepresenting products at the time of sale. Centralized systems for tracking authenticity of goods can be manipulated by those running the service or hackers. With VeChain, its creators assert that it is simply not possible for this to occur since it is secured through sophisticated cryptographic algorithms. Therefore, consumers will have the satisfaction that they are purchasing authentic products and not getting ripped off, once they scan the VID. Furthermore, businesses can boost their profits and run more efficiently when using VeChain, since it claims to protect them from fraudsters.
Reliable & Immutable Data Storage
Built-In Support For Smart Contracts
Data about the condition and location of the product can be entered whenever it is scanned. This information
VeChain’s protocol supports smart contracts, allowing digital assets to be linked to a VeChain account. Users are required to pay some VEN
in order to execute smart contracts, directly connecting the coin’s value to activity on the network. Several major companies have partnered with VeChain to accelerate its adoption globally, including PWC, DNV.GL, Groupe Renault, Kuehne+Nagel, China Unicom, D.I.G., BitOcean, MLILY, Sunshine Culture, Fanghuwang, Printed Electronics, XMiNNOV, madeforgoods, NRCC, Yida Future, and Michigan State University. VEN has intrinsic value due to the innovative design of VeChain’s decentralized product authentication system, and I expect its market value to rise in the long-term as more businesses implement this powerful new technology. However, this should not imply or suggest in any way that I am offering any investment advice, or trying to influence any investmentrelated decisions. It’s always best to do your own research, and invest responsibly. Zachary Mashiach
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Blockchain Startup PolySwarm Offers "First Decentralized Antivirus Martketplace" Rapid globalization, due to advancements in technology, has come with its advantages and disadvantages. Blockchain technology, another product of the 21st century, could help advance some of the positive aspects of globalization by helping to create equal op142
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portunity for people around the globe. It may even help bridge the workforce gap that exists because of racial, socioeconomic, or political reasons. Furthermore, blockchain could help in overcoming boundaries of language, border, and bias.
PolySwarm, a blockchain startup which claims to offer the “first decentralized antivirus marketplace�, could contribute to this effort, based on the services it aims to provide. Since technology has advanced to the point where we
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can instantly communicate with anyone around the world, people can now compete for a job regardless of their location. Notably, PolySwarm aims to assist cybersecurity experts around the world in competing for job roles which would solve cybersecurity threats that affect us all. The platform’s objective is to recruit talented individuals based on merit and to build anti-malware engines to offer greater protection. The idea is to converge the global workforce talent of anti-malware specialists that can efficiently work together to provide solutions related to cybersecurity.
Current Size of the Cybersecurity Market & How Can PolySwarm Can Help
The global cybersecurity market was worth around $140 billion in 2017 and could reach an estimated value of around $232 billion by 2022. Back in 2016, cybersecurity experts had to deal with 4,000 ransomware attacks each day. PolySwarm plans to overcome these ransomware and cybersecurity threats by
offering a blockchain-based, decentralized and distributed marketplace. Anyone can become part of this marketplace regardless of their background. The experts that identify cybersecurity & malware threats would be awarded bounties. So, the specialists would have a lot of incentive to help detect such cybersecurity threats.
PolySwarm’s CEO on Creation of the Platform
PolySwarm is led by Founder & CEO, Steve Bassi. He has spent several years working as a hacker, helping combat cybersecurity threats. After 20 years of experience, he wanted to create a solution for the industry that would help overcome global cybersecurity threats. One core element of his ambition was to include talents from all different backgrounds. Here is what Steve Bassi has to say about PolySwarm: “About 6 months ago the concept behind PolySwarm was born out of frustration: we were a small cyber security company with innovative tools and no path to market. So like good engineers we got frustrated and built something to
deal with the problem.” The strategy, so far, by Steve Bassi seems to be working in his company’s favor. Cybersecurity experts from various parts of the world including Philippines, Canada, and Switzerland are competing for bounties. The experts believe that there is a lack of cybersecurity experts in the West, which they think can be filled with the talent from other marketplaces.
PolySwarm’s Unique Set of Services
PolySwarm refers to itself as the world’s “first decentralized anti-virus marketplace”. There are also many things that the PolySwarm company claims to offer, and it says that its services are better than those offered by other cybersecurity companies. Some of the noteworthy features of its services are: decentralization, crowdsourcing, low cost per artifact, broader threat coverage, high output capacity, low real time analysis, faster speed to react, and interoperability. Farrukh
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NEO Blockchain Failed, Then It Didn't. FUD or Fact? What went wrong?
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n 6th March, 2018, The NEO blockchain came to a standstill. the 144
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problem revolves around its consensus system known as delegated byzantine fault tolerance (dBFT). Using dBFT is expected to ensure that a blockchain would
withstand the scenario where one of its consensus nodes fail or is dishonest. One of the consensus nodes on NEO did go offline. Since the nodes necessary
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for consensus on the NEO blockchain depend on each other for consensus, the network could not continue running when one of the seven designated nodes was temporarily down.
Bad Press For Neo on Twitter.
Following this event was a barrage of disparaging tweets on NEO. Eric Wall, a cryptocurrency engineer and writer, took to twitter and called NEO “hilariously bad.” He went on to give reasons for his statement. According to him, any cryptocurrency using neither proof of work nor proof of stake consensus mechanism was largely based on trust. A system based on trust is not what a cryptocurrency is supposed to be in his opinion. Wall also mentioned that a better way for NEO’s dBFT could have been set up by having the consensus nodes simply broadcast their signatures. A requirement would then be set for the consensus nodes to agree to a certain point. This way a single node would not hold up the entire network if it went down. To Wall, it was surprising that the 6th largest cryptocurrency by market cap
did not anticipate the simple problem. Creator of Satoshi.info and well-known engineer in the cryptoshpere, James Lopp, weighed in on the issue with a tweet of his own. He felt that the hours of delay on the NEO network caused by a single consensus node going down was proof that NEO was not byzantine fault tolerant. NEO’s relatively high market cap in spite of this problem made Lopp wonder if the cryptocurrency market was irrational or ignorant. Generally, most of the comments bashing NEO accused the project of being centralized and likened it to Ripple. More scathing remarks called it an Etherium knockoff. Here is what @ shootingstarrob had to say.
“I’m just calling all the toxic/flawed concepts “Financial Illiteracy Coins” until I can generate a more specific framework, something with merch possibly...”
Word from the NEO Council
In a statement from the NEO council, clarifications were made. According to Da Hong Fei, the founder of NEO,there was merely a block delay as a result of a node going offline and returning online after a short while. The document further iterated that NEO was in fact able to handle the situation. NEO and dBFT’s prioritization of finality over liveness meant the network coming to a halt did not require reversal of any transaction. More light was thrown on plans to decentralize the consensus node as well.
Community Reaction.
A few tweets from people who took to NEO’s defence showed that most holders or ‘fans’ of NEO were unfazed by the development. These two by @RobFiduciary and @ trader_redneck sum it all up.
“It may be a ‘controlled node Crypto’ but if it ends up being ‘Chinese ETH-Ripple’ then I still wanna own it ...” “Oh, LOVE that FUD! Keep them coming, Core Magazine
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i wanna fill my bags with have had any lasting negative impact on the price of this cryptocurrencies. $NEO Hell yeah!” It is also hard to tell if the event had any negative impact on the price of NEO. The daily and weekly charts of most cryptocurrencies seem to move in tandem in recent times.
Final Twist Eric Wall, who started the entire twitter storm about the issue made a turnaround a day later. He accepted he had a wrong understanding of exactly what went wrong initially. He based his earlier comments on the description of the problem given by NEO’s Senior R&D manager. Apparently, the R&D manager was inaccurate in his initial explanation of the problem. Wall still maintained that the standstill could have been avoided if the consensus system did not require all nodes to depend on single nodes that could go offline.
Similar Problems with other top cryptocurrencies The team of the 14th ranked cryptocurrency on coinmarketcap. com was found wanting when it was detected that the Tron whitepaper was plagiarized. There have also been concerns raised over Ethereum’s Casper being “fundamentally vulnerable” . None of of these issues 146
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Truth is it is difficult to find out the rationale behind the present valuation of cryptocurrency projects at the moment. It’s therefore critical that cryptocurrency investors understand what they are buying. More importantly, they should assume they are putting money into experiments and works-in-progress, instead of thinking of cryptocurrencies as full proof finished products. Like the CEO of Kraken once said, “cryptocurrency buyers should look after themselves.” Elikem Kofi Attah elikem@coregroup.info
Blockchain News
ICO Lists Actor Ryan Gosling as Graphic Designer Before Pulling Exit Scam Core Magazine
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I
nitial coin offerings (ICOs) are a great way for legitimate startups to obtain funds and get out there. They are, however, filled with scammers trying to trick investors. An ICO for a startup going by Miroskii was recently caught using a stock photo of actor Ryan Gosling as its graphic designer, and swiftly pulled an exit scam once the jig was up. LMFAO reviewing this #ICO....anyone see something off ?$BTC $ETH #ICOs #Scamhttps://t.co/ j11kzlKzkW pic.twitter.com/ xjPgGHvLEI — Shill Nye The ICO Guy (@CryptoShillNye) March 4, 2018 Miroskii named its designer Kevin Belanger, but Twitter and Reddit users quickly found out something was off, as he looked just like actor Ryan Gosling. Upon investigation, CNET found out mostly every team member had a snatched photo, taken from real people who have nothing to do with blockchain or cryptocurrencies. The project, according to its website, described itself as a “bank without any bankers.” Whoever was behind it quickly took the website down once it 148
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was clear the jig was up, along with every social media account the project had. The exit scam, according to Miroskii’s now-downed website, netted $833,000 from 380 investors who participated in the project’s ICO. While it isn’t clear whether the number is real or fabricated, some evidence suggests it’s real. The startup managed to run a small PR campaign, that saw its press release get published on at least one cryptocurrency news outlet. This could have sparked interest in the project.
Exit scam potentially rakes in $833,000
The project was filled with red flags – besides the Ryan Gosling photo. It claimed that industry giants tested, approved and accepted its token, the Miroskii Coin (MRC), and were already using it in their “closed B2B sector.” The project’s website further claimed demand forced it to hold the first stage of its ICO for institutional investors only. Moreover, it claimed that “Visa, Master Card, Maestro Card, American express and many more” had already signed to issue Miroskii-branded
cards. While cryptocurrency debit cards do exist, it wouldn’t make sense for the startup to sign deals with various card issuers. The website further noted the project was going to be “regulated under the EUROPEAN Union.” The scammers behind the project likely meant the company would receive a banking license, which would be highly unlikely given the current regulatory environment surrounding cryptocurrencies. As if all these red flags weren’t enough, Miroskii didn’t even have a whitepaper, as its website said it was “coming soon.” Its social media accounts had a total of seven followers. This isn’t the first ICO exit scam seen this year. As covered by Core Media, Ethereumbased Prodeum recently pulled a similar move. Francisco Memoria franciscom@coregroup.info
Blockchain News
Kazakhstan's Interest in Cryptocurrencies Grew 15-Fold, Yandex Study Reveals Core Magazine
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study conducted by multinational corporation Yandex recently revealed that residents of Kazakhstan have begun to take a lot more interest in cryptocurrencies. In fact, their interest, based on search engine queries, surged 15-fold this year, compared to 2017. According to local news outlet Zakon, cr yptocurrency-related searches started surging last year. Yandex, the largest Russian search engine and the largest technology company in Russia, saw its study compile Kazakhstani search queries between 2016 and early 2018. Per Yandex, Kazakh users’ interest began in June 2017, and surged in September of the same year. The study notes that Kazakh users often search for courses on cryptocurrencies, guides on how to buy cryptocurrencies, on exchanges, and on mining. Searches for “bitcoin” grew 7-fold this year, when compared to early 2017. Zakon details that overall, Kazakh users’ interest in cryptocurrencies grew exponentially.
“In early 2018, Kazakhstan residents made about 15 150
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times more requests with this word [cryptocurrency] than in the same period of 2017, the report reads. Among the various industry-related search terms Kazakhstani users use, bitcoin, blockchain, initial coin offerings (ICOs), and cryptocurrency mining are among the top. Specific queries see them ask Yandex if a “student can work for bitcoin,” or “what is a blockchain in simple words for dummies.” When it comes to mining, the country’s residents are seemingly looking to start their own operations. Some of the popular search terms include “how much does mining pay really,” and “where to get money for a mining farm.” Searches for “graphics cards for mining” increased 10-fold when compared to last year.
Kazakhstan users worried about cryptojacking
Yandex’s study further reveals that internet users in Kazakhstan are worried about the ongoing cryptojacking trend. The trend essentially
sees cybercriminals use other people’s CPU resources to mine cryptocurrencies. Usually, criminals mine privacy-centric coins like Monero. Some high-profile cryptojacking victims include the Los Angeles Times, and various government websites throughout the world. Kazakh users often ask Yandex “how to find out if I have a mining virus,” as well as what type of software will help them fend off cryptocurrency mining malware. As covered by Core Media, Kazakhstan has looked into launching its own fiat-backed cryptocurrency last year. Other countries have entertained the idea as well. So far, only Venezuela launched an oil-backed cryptocurrency, that isn’t even purchasable with the Venezuelan Bolivar. Francisco Memoria franciscom@coregroup.info
Do you have a crypto project??
We can help you press@coregroup.info
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Amazon Customers Say "Yes" To Company's Own Cryptocurrency Amazon Might Launch Its Own Cryptocurrency
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mazon, the giant online retailer, has reportedly gotten some feedback from its customers about the possibility of developing
its own cryptocurrency, the “Amazon Coin.” It appears that a majority of its users are receptive to the idea of Amazon’s version of a digital currency. In fact, more than
Blockchain News
half of the people surveyed, using LendEDU, approved of the idea. The Seattle-based, American e-commerce and cloud computing company clearly has the financial resources to create its own cryptocurrency. According to several reports, Amazon’s market capitalization could likely exceed $1 trillion, the first company in the world to do so, within the next 12 months. Due to its record setting growth, the behemoth retailer is looking to infiltrate other markets and industries such as healthcare and grocery.
Results Of Amazon’s Cryptocurrency Survey
For Amazon to consider developing its own cryptocurrency seems logical as digital currencies appear to be headed for mainstream adoption. Moreover, 52% of 1,000 survey participants said “yes” to a company’s plan that would introduce its own digital currency. The idea was even more popular among the company’s prime users, considering that 58.27% of them signaled their approval. Notably, its prime customers are entitled to faster and even free shipping, and
access to media content in exchange for a paid monthly subscription. Not everyone was as enthusiastic towards the company’s crypto plans. That’s because other survey results showed that 26.4% of the respondents were “unsure” about the idea of an “Amazon Coin.” Meanwhile, roughly 22% said they would not be in favor of using a company-issued digital currency to shop online.
Plans To Move Into The Cryptosphere
Based on the company’s activities over the past few years, it’s certainly not oblivious nor maybe even opposed to the idea of cryptocurrencies. This can be inferred from the fact that it purchased the domain name amazonbitcoins.com back in 2013. Even though the retailer has not set up any kind of bitcoin-related business through this domain, visiting the link does direct users to Amazon’s homepage. More recently, the retailer acquired three more crypto-related domains: amazoncryptocurrency.com, amazoncryptocurrencies.com, and amazonethereum.com, When the company made
these purchases in late 2017, Patrick Gauthier, VP and GM for the company’s payments department, stated that it was not going to be accepting cryptocurrency payments, because the demand for this option was not high enough. The purpose of buying these domains, Gauthier noted, was to preserve the company’s brand identity. While developing its own cryptocurrency might sound like an appealing idea to some, the results of Amazon’s crypto survey should not be mistaken for an actual plan by the company to launch a digital currency. To its credit, it has not been quick to jump onto the crypto bandwagon, like many other companies. However, this could very well be because it has managed to generate ridiculous amounts of profits doing what it already does best, which is simply to sell almost every type of product, 24 hours a day.. Omar Faridi omar@coregroup.info
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PayPal Submits Patent For Expediting Cryptocurrency Payments PayPal Wants To “Expedite” Crypto Payments
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aypal is reportedly looking for a faster way to process cryptocurrency payments. In fact, the company recently submitted an application titled “Expedited Virtual
Currency Transaction System” to the U.S. Patent and Trademark Office (USPTO). The application goes over the process used to exchange private keys between a buyer and a
Blockchain News
seller. Private keys basically consist of a sequence of letters and numbers that are used to encrypt and decrypt information exchanged between a sender and a recipient. In the filing, Paypal proposes a method to reduce the time needed to complete a transaction between a consumer and a merchant. Moreover, the company claims that its method will remove the requirement of having to wait for transactions to be processed by the next block generated on the network. This can be done by using secondary wallets that have their own unique private keys, according to PayPal.
Detailed Description Of Faster Crypto Payments
Using this technique, the company explains, will allow the payments system to send “predefined amounts” of virtual currency by linking it to unique sets of private keys. Furthermore, in the detailed description section of its lengthy patents application, Paypal writes:
“Embodiments of the present disclosure
include systems and methods for providing expedited virtual currency transactions through the use of private keys...[this can] practically eliminate the amount of time the payee must wait to [receive payment] by transferring to the payee private keys that are included in virtual currency wallets that are associated with predefined amounts of virtual currency that equal a payment amount identified in the virtual currency transaction.”
Notably, the filing of this patent is not surprising as Paypal has been working closely with a number of Bitcoin payment processors such as BitPay, GoCoin, and Coinbase since 2014. These partnerships have allowed merchants to accept digital currencies via Paypal’s Payments Hub. It also appears that the company is quite fond of cryptocurrencies, because Peter Thiel, Paypal’s co-founder, has reportedly made substantial investments in Bitcoin through the Found-
ers Fund.
Plenty Of Competition
Companies around the globe are working hard to develop faster, more secure, and cost-effective payments solutions. For instance, as Core Media reported, the Ripple company has introduced a suite of products that aim to revolutionize cross-border transactions. Although Paypal may be a leader in payments processing, it seems to have realized that constant innovation is necessary to remain competitive and relevant in the rapidly evolving digital economy. Moreover, with so many companies trying to provide the best payment methods, it is unlikely that every effort will be successful. At this time, it is not clear when Paypal’s proposed solution will be launched and which cryptocurrencies it will support. Omar Faridi omar@coregroup.info
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The Stratis Platform | Not Just A Bitcoin Copy Cat Stratis Is...
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tratis is a blockchain platform built using the same framework that Bitcoin was built on. Notably different from Bitcoin, Stratis is fueled by a Proof-Of- Stake (PoS) method of consensus, unlike the Proof of Work or PoW utilized on the Bitcoin network. PoS is not as voracious in its 158
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energy consumption as the gluttonous PoW protocols; and, less energy use equals lower electric costs, so add a check mark to the positive improvements.
Stratis Is Unique, Yet Utilizes A TimeTested Foundation
Beyond the PoS difference, Stratis brings significant
additions to the established and time-tested Bitcoin framework. Making their project stand out on its own, away from Bitcoin, are improvements such as smart contracts, customization-ready side chains, and a self-certifying school for programmers to learn how to create projects on the Stratis platform. The creators of Stratis call it a
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BaaS Platform or a Blockchain as a Service Platform, because of the varying use case applications when compared to other projects in the cryptosphere. Plainly stated, Stratis offers more practical uses than its predecessor, Bitcoin, and has a more easily adaptable (programming) language to build on than the other most common comparison, Ethereum.
announced this as their second attempt to raise funds for their project. On the official Gluon website, they explain in the FAQ that the reason the first ICO was unsuccessful was because the Ethereum chain was where they had originally launched. However, due to various performance-related issues, they decided that the Ethereum blockchain was not the right fit for their needs.
The Stratis platform is the base through which developers can build token projects using C# on the .Net framework. Utilizing the world’s most widely taught programming language, C#, means that a more robust selection of tools and projects will spring into existence at regular intervals.
Beyond Global Trading is the second ICO to announce a launch from the Stratis Blockchain Platform, and it aims to improve the way people trade, globally. The promises made by Beyond Global Trading (or BGT) include multi-national business relations, product creation policing and monitoring supply and manufacturing chains, from beginning to end, to help reduce abuse and counterfeit operations.
Stratis Based Projects To Check Out
The Stratis buzz got louder when the team began to announce their first ICO project partners, including Gluon and Beyond Global Trading. GLUON, which will be the first ICO to launch from the Stratis platform, is a project focused on improving the automobile industry. Interestingly, the Gluon team
Get Some Stratis In Your Knowledge Base
Much earlier than the promised time frame by nearly 6 months, the team released nStratis Development Framework (SDF), which enables blockchain development in the widely understood and used C#, and other languages supported
by the .NET framework. This release greatly accelerates the potential for development that will add to the open-source, cross-platform blockchain applications, even on Microsoft’s .Net framework. Before diving into the Github of it all, it is highly recommended that you check out the Whitepaper here. This all looks promising indeed, and at CORE, we are interested in hearing about your personal experience with this product, in comments below. Tell us what you think of this seemingly useful project and it’s new ICO launch announcements. Cheers! This is not advice. Advice should be accepted by your chosen legal counsel only and financial advice should come from a licensed or certified financial professional. As always - do your homework and make decisions based on your own education. Seek information and look into projects before adding to or diversifying your portfolios.
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UK Secretary Diane Abbott Says Bitcoin Is a "Gigantic Ponzi Scheme"
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iane Abbott, the UK Labour Party’s shadow home secretary, recently weighed in on bitcoin and revealed that 160
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she sees the cryptocurrency as a “gigantic Ponzi scheme.” She added that the Labour Party would regulate if it had the power to do so.
Speaking to Politics Home, Abbott weighed in on bitcoin, and presumably the cryptocurrency space as a whole. It is unclear what form the
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regulations would be applied. The Labour Party is known for being a strong proponent of regulations and government oversight. She stated: “Labour overall thinks it’s important to have proper regulation of financial services,” the MP for Hackney North and Stoke Newington said. “It was poor regulation of financial services which led to the 2008 crash and obviously regulating bitcoin would be part of that.” Abbott didn’t stop there. She also revealed she believes the cryptocurrency’s price is artificial. According to her, the cryptocurrency’s value would collapse if every bitcoin investor attempted to trade their coins for fiat. Moreover, Abbott added that bitcoin is being used by terrorist organizations, and that this concerns
the Labour Party. The secretary’s opinion echoes that of Bank of England governor Mark Carney, who recently warned all cryptocurrency investors could lose all their funds. Per Carney, the cryptocurrency space should adhere to the same rules and standards the traditional financial system adheres to. Diane Abbott further explained how she believes bitcoin could collapse. She stated: “If everyone took their bitcoin money and tried to buy a new car all at once the whole thing would collapse.” Other public figures have also taken a harsh stance against bitcoin. Charlie Munger, a 94-year-old business partner of Berkshire Hathaway CEO Warren Buffett, recently stated that it is “disgusting” people
buy bitcoin and other cryptocurrencies. Diane Abbott is known for controversial remarks Notably, the shadow home secretary is known for her controversial and often illinformed remarks. She has in the past suggested that the Labour Party could get as many as 10,000 people to join the UK police for £300,000, which would equal £30 ($41.4) per officer. Other than that, she also pointed out that the lesson to be learned from a tragic fire was that “fire puts out water,” but then corrected her mistake. In her tweet, she proceeded to call for the government to add“sprinklers in tower blocks now.” Francisco Memoria franciscom@coregroup.info
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DDoS Attacks Include Ransom Notes Demanding Monero's XMR DDoS (Distributed Denial of Service) Attacks
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kamai’s security intelligence unit has reported that recent DDoS (distributed denial of service) attacks have become increasingly sophisticated. In case you don’t know, DDoS attacks are carried 162
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out by “hijacking” a number of computer systems and installing malicious Trojans on them. A Trojan (horse) is a computer program that uses deceptive tactics to conceal its purpose. This “purpose” is usually to steal personal information like passwords, access to a user’s bank account, and even take over key functions of their operating system.
Typically, a Trojan accomplishes this purpose by disguising code, which allows them backdoor access to a user’s system, in an email attachment. Once a user clicks and downloads the attachment, the attack begins. After several systems have been “taken over” in this manner, the hackers launch a denial of service attack (D0S) from all the infected
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systems. The motive of a DoS attack is to prevent targeted users from being able to access certain network resources and various other internet services. This is done by intentionally flooding and overloading the users’ network with “spamlike” requests. Since this superfluous traffic is targeting a system from multiple sources, sometimes even using hundreds or thousands, it is not possible to prevent the attacks by blocking just one IP address. Moreover, it’s not easy to figure out which traffic is normal, and which is “attack traffic”. That’s because traffic is coming from so many different sources.
Akamai Engineer Says DDoS Are Becoming More Sophisticated
Now, according to Chad Seaman, senior engineer a Akamai Technologies, the already complex DDoS attacks are becoming even more sophisticated. Seaman describes them by stating, “It’s actually like a DDoS attack with a phishing attack with an extortion attack all rolled into one. When we saw
it we were like, huh, clever bastards.” What the Akamai engineer is referring to here is an embedded demand in the hacker’s cryptic code, which asks for “50 XMR”, or Monero. At the time of this writing, 50 XMR is approximately worth $17,000 (CoinMarketCap). Although DDoS attacks have previously included ransom demands, they’ve come through emails, or other similar modes of communication. However, this approach might have been adopted because, as Seaman points out, ransom messages in emails tend to get filtered out by spam blockers. By embedding the ransom note in the DDoS code itself, security analysts checking the affected system will likely come across it.
Monero’s XMR Demanded As Ransom
where they’re publicly visible, the sender, recipient, and amount transferred is hidden in XMR transactions. Due to the anonymous nature of Monero transactions, even the hackers might not know if their victims have actually paid them. This could lead to their ransom demands not being met. Therefore, it’s not entirely clear just how the attackers intend to get what they want. Oftentimes, it becomes confusing to figure out what cyber thieves are up to, or even mysterious. In one particular case reported by Core Media, the CoinDash ICO hacker kept returning stolen ETH. This behavior clearly indicates that the security of online systems needs to be drastically improved. Omar Faridi omar@coregroup.info
The reason hackers demand ransom money in Monero’s XMR, instead of more mainstream cryptocurrencies such as Bitcoin, is that its transactions are a lot harder to track down. Even though both BTC and XMR transactions are executed on a public blockchain, Core Magazine
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I
n this Komodo Video, Ignacio Figueroa from Crypto Core Media interviews Audo at the event called Anarchaforko 2018 in Acapulco, Mexico and gets to know about Komodo Cryptocurrency and the different features that they provide to the end user. Audo explains about the decentralized exchanges and Atomic Swaps technology used to provide independent blockchain for the businesses. Let’s find out more about it in this Komodo video Q&A with Audo. Komodo Video
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Can you explain to the new people coming into the cryptocurrency space who may be watching this Komodo video Q&A about the platform? What it is offering to the community and how it is different from other Cryptocurrencies? Komodo provides technology to the entire blockchain industry. If a business or project gets involved, they can be an independent chain, and you can launch their infrastructure, this eliminates restriction and limitation that they might have if they are on other business.
So, you mean to say that Komodo is a platform that will allow business to have their own blockchain? Yes Exactly, If business comes into Komodo, it is easy for them to create a Native blockchain. This is not the case otherwise. They run their chain, and all transactions go through their chain. This is entirely independent of Komodo or any other businesses on the ecosystem. In case of the most popular platform like Ethereum, if a thousand businesses are running on it, they are all using the same blockchain, and this results in heavy traffic leading to high transaction fees.
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In our platform, business will have their own blockchain with an alternate approach that allows the ecosystem to scale better and developers can do their development independently. Let’s take a scenario where the business happens to have so many transactions, and their blocks become full, In that case, they are free to raise their block limit and make their own rules for their blockchain.
Let’s talk about the history of Komodo, how did you start with the Idea? I understand that You began to with NXT platform and how did you arrive at this solution? We have a colourful history that goes back to 2014, where we started with a process called SuperNET and also had a privacy coin called “Bitcoin Dark”. We were building on top of NXT platform, in addition to this, we were also working on third-party projects on top of NXT.Our values were always like collaborating with others rather than competing with them. We were looking for long-term horizon like ten years, instead of focusing on the present competition. In 2015 we realized that we would have problems if we depend on NXT and this is the case
with other businesses as well using any other platform, and then we arrived at the idea of providing independent native blockchain, and now we are here as “Komodo Platform”.
One exciting thing is decentralized ICO’s, can you elaborate on that platform? We have Crowd funding solution with native blockchain that constitutes the decentralized ICO, and it is not possible on any other platform. It is based on Atomic Swap technology. We have been pioneering Atomic Swaps, and it facilitates direct trade between two blockchains like Litecoin to Bitcoin or Bitcoin to Komoda, likewise, any other pair is also possible. Currently, we have made sixty thousand Atomic Swaps including some public stress test with our community. We have come a long way, and we are leaders in this space. Crowdfunding is based on this technology.
Can you tell us so people watching this Komodo Q&A can understand about Atomic Swaps? Let’s say I have a coin; Bitcoin for instance, then I can trade to Komodo coin.Submit an order in a decentralized ex-
change, and if someone takes it at the other end, atomic swap process begins, and I trade my real bitcoin to real Komodo. It takes few minutes to complete the atomic swap. Real Bitcoin can be swapped to Komoda coin or any other coin without trusting any centralized system. It allows people to trade directly within a true decentralized market.
Can you tell us about the decentralized exchange that you are working on right now? This project is called “Barterdex” and what we have done for decentralized exchanges apart from atomic swap is that they need to have their own order book. The first thing we need to do, after developing Atomic swap protocol, is that to develop a way to have a decentralized order book. And now we have developed an offline Decentralized order book which allows instant transaction – We place an order on a decentralized network and the order is withdrawn when another user at the other end takes it, and it is very fast and decentralized. After matching order, the atomic swap begins. We have GUI application ‘Barterdex’ which we use in our community to do public atomic swap stress test. We do a stress test to see the amount Core Magazine
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of load the exchanges can take, and we have seen some good positive results. Now we have everything running in the background online, and everything works fine without any issues so far. We are working to provide secure user interface application and once ready we can start marketing it and provide an actual use-case for this decentralized exchange.It is entirely open software, any business can tap into the decentralized platform for free. And it provides more liquidity when more users use our exchange. Once we get users on board, then the third party can also use it. Later crypto community will also trust our technology that includes the centralized Exchanges as well which will also integrate with our Decentralized exchange to allow us to buy fiat like USD or EURO to any crypto, but the exchanges would be using our decentralized software on crypto side while fiat payments and KYC norms for banking purpose would be processed at their end. So, We can have both the worlds coming together, and that is the direction that we will be moving.
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How do you fix the challenge of low liquidity on the exchanges? This is a significant problem for any exchanges – Centralized or Decentralized. We allow anyone to become a liquidity provider on our platform. Anyone can provide liquidity using the GUI application and also make the profit while doing it. Everyone has cryptocurrency portfolio, and they can place it in the automated market making and put the capital to use and provide liquidity. And more liquidity gets added when more people place their capital on our platform. We also request each cryptocurrency community to provide liquidity for their coin. So they can buy their coin in our exchange and directly help in increasing the liquidity for their coin.
Is the Liquidity creating tool already working or under development? I believe it is working using Barterdex GUI. There is a trading option, and you can leave it running, and it will automatically be buying and selling and balancing the portfolio. So we have it currently in working condition.
What brings Anarchaforko?
you
to
We have correspondents in the Anarchaforko event, three people from the team came here, and they were explaining about Komodo to the public. We had a small presentation in the event, and we were able to connect with a new group of people. They are not aware of Komodo, and so we thought of showing our presence here to teach people about Komodo. People were interested and asked a lot of questions about Komodo. One of the specialties of your product is security and anonymity. Those are two main things that you have. Can you explain how this system works? Security plays a vital role in this ecosystem. If we create a new blockchain. It has almost no hashing power. So we need to secure each chain. Small business will have low value for their blockchain, and something should secure it. Otherwise, even medium mining pools could attack the chain. That is what we call “Komodo security feature”. It is the second layer of security on top of initial POW consensus. Technically speaking, this is called as “Delayed proof of work”.
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We use Bitcoin and recycle the bitcoin hash rate, and we make these group of transaction that record blocks to the Bitcoin blockchain like a backup and if something goes wrong in Komodo chain, we can restore a backup from Bitcoin blockchain. So if they want to destroy the record, they need to take down the Bitcoin blockchain as well, so this is very safe.Also, other blockchains can notarize their info and back it up to Komodo blockchain. It is cheaper due to lower transaction fees. They can restore their system from Komodo any time they want if someone attacks them. It is like Two-factor authentication providing extra security. If we disable the security nothing will happen, It is just an additional security for their chain. Overall, It is a beautiful architecture for the entire ecosystem,
Anonymity is essential these days, can you explain about the anonymity feature in Komodo, Since we have a lot of privacy coins attracting more people, What Komodo is offering to the community as far as anonymity? We saw the Zero-Knowledge proof as the best anonym-
ity feature which is the underlying technology in Zcash, and they are the core part of our whole platform. If a business come to Komodo and creates a blockchain, they are given an option to include this privacy features also. Let me explain how the privacy works. There are two types of addresses, and if transactions go through Z-address, it cannot be seen by anyone else. It removes the record completely. I can send Komodo coins through this private address and when it comes out on the receiving end the entire trail of the transaction is destroyed and using the atomic swap technology we provide the same technique for any other coins in Komodo platform. Say, for example, we can exchange Bitcoin Cash with Komodo using Atomic swap and then funnel the Komodo funds through the private address, and it swaps the Komodo coins back to Bitcoin Cash, and this process efficiently creates decentralized private technology.
I just remember that you approached Roger Ver and explained to him about Komodo, what did he say about it? I had a chance to “Say Hello” and explained to him
that we were doing the atomic swap between Bitcoin Cash and Komodo. I wanted him to know that it is there for their project also to use and benefit. Bitcoin Cash wallet also could use the decentralized exchange to buy Bitcoin cash using Bitcoin or any other coin. Also, they can use the security feature to secure their Bitcoin Cash blockchain with Bitcoin’s hash rate and get same security as Bitcoin.
Tell us about the coins that you have in the BarterDex exchange and any limitations for you to accept any coins that wanted to be listed on the exchange? We accept any coins, there is no limitation to list any coin, and any coins can register in our exchange. Also, we are integrating Ethereum and ERC20 tokens also. We have also done one successful Atomic Swap between Ethereum and Dogecoin recently. The Komodo Video Q&A Wrap Up: It was a wonderful Komodo Video Q&A interview with Audo at the Anarchaforko event and Ignacio and all his viewers and readers learned a lot about Komodo platform Core Magazine
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and its use cases. It was fascinating to learn from the Komodo video interview how Komodo delivers decentralized exchanges using Atomic swaps and Barterdex and how it allows businesses to function as an independent blockchain. Thats it for the Komodo Video Q&A, thank you Audo & Ignacio! Kadhir Ramasubramaniam
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Developers at the EthCC Reveal Slow Progress on Ethereum Projects
EthCC is an Ethereum conference that aims to brainstorm the current state of development on the Ethereum platform. The conference was held in Paris at the Conservatoire Nationale des Arts et MĂŠtiers (CNAM), beginning on the 8th on to 10th March 2018. The goal of the conference is for teams developing projects on the platform to get together
and share their experiences and plan their next moves. EthCC aims to focus on subjects such as Scalability, Anonymity, Development tools and Governance Compliance. Many important blockchain industries influencing actors such as the Ethereum Foundation, Ledger, ConsenSys, Shapeshift, uPort, Oraclize, or Melonport are also taking part in the conference.
Privacy as a mirage
Ethereum is looking to improve its blockchain, particularly its privacy features. However, it appears that this has proven to be very hard to achieve. Moreover, testing with improved ring signature technology is ongoing. Known as RuffCT, StringCT or RTRS RingCT, this technology allows for a complete form of privacy by hiding destinations and sender addresses. Notably, there are several ways this technology can be implemented. While developers are testing Core Magazine
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different methods, they have all come to the conclusion that these methods have shown to go over Ethereum’s processing capacity, which is becoming a hindrance to steady development. Given these issues, Jacob Eberhardt, one of the Ethereum developers, noted that there is a need to use more cryptographic variables when working with Ethereum, which would require a system-wide software upgrade.
scalability and privacy. Now, this is affecting the overall development for these goals, according to Miller. Moreover, development teams have been disregarding these subjects and the development progress has been stagnating, which could have serious implications for the future of the platform.
The code used to implement privacy features and contracts, which are written using the ZoKrates programming language, is still very cumbersome to work with. Moreover, it still appears stuck in the setup phase. And this has already been seen to be slowing the adoption of zeroknowledge cryptography into businesses built on the Ethereum platform. Furthermore, some features are harder to implement in ZoKrates code, which is delaying the whole process.
One of the most renowned developers in the Ethereum Foundation and founder of smart contract company ZK Labs, Matthew Di Ferrante, noted at the conference that there is still much to be done. Speaking to the conference audience he warned:
Developers like Andrew Miller, who first though that there would be an increase in privacy-focused Ethereum applications, are now saying that the teams involved in the development never gave much importance to problems like 170
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Scalability and Ongoing development
“If you think Ethereum isn’t scalable now, or that blockchains aren’t scalable now, the further you get the more alarming it is. Everyone likes to talk about the magic, but not many people can write the code.”
Zero-knowledge proofs, uses a feature that allows compressing information in a readable format. According to Di Ferrante, this could probably
be used to enable better scaling and to reduce information on the Ethereum blockchain. The conference is ending today, but the Agenda is still not complete. In order to discuss and study the tokenization trend, its impact and implications, the 2018 Tokensky Blockchain Conference will take place in Seoul, Republic of Korea, on March 14th-15th, 2018. Nuno Menezes
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KODAKCoin Backers Hint Token Trading Restriction The KODAKCoin backers are pointing to potential trading restrictions, should the US SEC label it as a security.
Brand Behind KODAKCoin Development
Once one of the leading brands in the film and photography world, now sees a backing from WENN Digital.
A Bit about WENN Digital
WENN Digital is a firm venturing into big data and also an AI-enabled image recognition platform. The company is working in partnership with Kodak for the creation of the KODAKOne platform, as well as the KODAKCoin cryptocurrency.
The company claims to have expertise in operations, experienced development, post licensing monetization systems, and copyright law. Here is what the company’s CEO, Jan Denecke had to say in one of its latest tweets about KODAKCoin.
“Subject to the highest standards of compliance, Core Magazine
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KODAKCoin is all about paying photographers fairly and giving them an opportunity to get in on the ground floor of a new economy tailored for them, with secure asset rights management built right in.” There is a matter of declaration about the nature of the KODAKCoin. Whereas, WENN Digital pitches the KODAKCoin as a utility token, its disclosure points to the fact that the US Securities and Exchange Commission may differ in its interpretation of the KODAKCoin, suggesting they are securities. Here is the disclosure given by WENN Digital on KODAKCoin in this regard.
“While WENN Digital intends for the KODAKCoin issuable under the SAFTs to be classified as utility tokens rather than securities tokens, WENN Digital will be required to make a final determination of the tokens’ status
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as one or the other prior to the time that the KODAKCoin are issued pursuant to the SAFTs. In conjunction therewith, WENN Digital may decide to seek formal or informal input from the staff of the US Securities and Exchange Commission. If it is ultimately determined that the KODAKCoin are ‘securities’ for purposes of the Securities Act, the KODAKCoin will be subject to significant restrictions on resale and transfer in the absence of registration under the Securities Act unless an exemption from registration is available.” Let us have a recap of the different types of securities / cryptocurrencies / tokens traded within the blockchain ecosystem.
Coins or Cryptocurrencies
These are the digital currencies generated via encryption techniques for regulating units of currency and verifying transfer of funds. However, they do not come under the regulatory framework of central banks.
Utility Tokens
The utility tokens divide the services into units of services that anyone can purchase for using those services. The concept remains similar to APIs. They can have different use cases including funding projects, particularly relating to infrastructure developments. They can also be sold via crowd-sales during token launches.
Tokenized Securities
Tokenized securities represent shares in a business. However, these need to pass the Howey test if a business wants the SEC to consider their issued tokens as securities falling under the 1934 Security Exchange Act. So what does Howey test contain for Tokenized Securities? If it is investment of assets
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or money? Is this investment in a common enterprise? Do the investors have expectations of profit from their investments? Does the profit involve efforts of a promotor or a third-party? Lastly, if the profits are coming from investments largely or wholly beyond the control of the investors? If the answer to this ques-
tion is yes, then SEC can consider it as a security. So what is the Big Deal about SAFTs? There are no clear reasons behind such elaborate investigations into SEC’s probe into many of the SAFTs. However, there are apparently a lot of things that SEC wants to know about them. The government wants detailed responses, containing all the details and answers to the questions that it may have about SAFTs. Many SAFT experts consider one way out of this fiasco caused by
so many questions put up by SEC. They advocate that SEC may come up with regulatory policy guidelines, helping firms conduct token sales while remaining within its regulatory framework. Farrukh
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Core Group Evangelizes Bitcoin Sponsorship Bitcoin Sponsorship For The Darwin Buffettes Bitcoin Sponsorship For The Darwin Buffettes makes Core Group proud. The Dar174
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win Buffettes, a Northern Territory Australian Football League (AFL) Women’s Team sponsored by our very own ‘Core Group’ for the 2017 2018 season have won their Grand Final. Not only did the young ladies win the Grand Final, but they remained un-
defeated throughout the entire season. A feat that can be described as truly exceptional and one that will last in the hearts and minds of the players for years to come. Sports teams sponsored by crypto you say? Well of
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course, and why not? A quick look at sponsorship reveals an interesting cross-section of participation from cigarette manufacturers to alcohol brands, Insurance company’s to financial institutions and of course hospitality’s usual suspects from McDonald’s to the local sparky or plumber. It was an opportunity too good to pass up when our CEO was asked if he would be interested in taking on the major sponsorship for the team. Finally, bitcoin can be seen in a proactive and positive light, instead of the usual negative associations. Bitcoin is more than a crypto trade instrument. It is useful for much more than the widely televised fraudulent acts. The reputation that bitcoin has received unfairly shows mostly negative news like circumvention of laws by terrorists or other dishonest groups. Criminal activity is a microscopic portion of the way cryptocurrency is used, and we want to show you the positive side.
Bitcoin Sponsorship Shows A Positive Side Of Crypto Despite Negative Spotlight
The most important thing to observe here is a simple fact that brand awareness is not to be underestimated. For Bitcoin, this is what will drive home adoption on a massive scale. Think about that for a second. Our team celebrated a victory in style, watched by thousands of adoring fans, televised and broadcast on local radio, their jerseys decorated with the Bitcoin logo. Sure, it was in an obscure and relatively remote area of Australia, but we were instrumental in lifting the spirits of the team, the club, the supporters and rode the crest of celebrations as Grand Final Winners. As exciting as this was, it only illustrates the beginning of what we hope will be a contagious method of positive development at a business level, for crypto. Also, this type of community uplift is a fantastic opportunity to lead by example, which has been a part of the vision for Core Group since our inception in 2013. This all ties together to further emphasize
the growth, development, and metamorphosis of Core Group into Crypto Core Group 2018.
Bitcoin Sponsorship Encourages Communities To Focus On Positive Impact Of Bitcoin
Can you imagine it? We envision legitimate crypto projects using their newly created wealth to support our youth, providing not only sporting scholarships and education scholarships but individual excellence programs and funding for positive development initiatives at a community level. This is where cryptocurrency should focus if they want to be taken seriously by the general population. Participation in being good role models like this will show legitimacy and commitment to a better future for our children and for our own twilight years.
Core Group Proud Sponsors Of The Darwin Buffettes Has A Surprise Gift For The Girls
Core Group is proud of these ladies and in addition Core Magazine
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to the sponsorship given to the team, each teammate will receive a gift with a world of value in it. The first part of the gift will be in cash, because this is the currency they are accustomed to using, earning and spending. Then, as a more meaningful gesture, each team member will be given a lesson on creating a mobile bitcoin wallet, and when they are ready a gift of $50 worth of Bitcoin to fund their newly created accounts.
a chance to understand the positive impact this form of transacting can really have on human lives.
Along with this awesome gift, they will be given the opportunity to learn about cryptocurrency using tools our team will provide. The importance of instilling knowledge of how it all works in the world of crypto is a mammoth task, however, it is vital to the future generations that everyone gets
The magnitude of a good deed may seem small, but the reality of humanity has layers to it. To keep it simple for now let’s just say that people are what they surround themselves with. With this thought in mind, we are surrounding the globe with righteous intentions, and educational oppor-
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There are plenty of shady stories surging through the headlines at a pace that is hard to keep up with, but the notoriously naughty bitcoin has a much broader community that works tirelessly to add a touch of philanthropy and genuine kindness to the equation. Bitcoin is positive too!
tunities that promote balance and freedom. For anyone interested in spreading the positive message, bitcoin sponsorship is a good place to start. If you are yawning, wake up, because of our readers and viewers, one lucky person will win $100 in bitcoin. Here is how: In order to enter the contest, follow our twitter account usernames: @Ccm_house then make sure to retweet the Darwin Buffettes Story. When you have completed the requirements to enter, please copy the URL from your retweet and email it to office@coregroup. com. A winner will be selected from the completed entries on 03/17/2018 and a winner will be announced the following business day. Good luck!
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Big Brands Prompted To Adapt To Blockchain Or Grow Irrelevant In "Crypto Boom" Big Brands Prompted To Adapt To Blockchain Or Grow Irrelevant In “Crypto Boom” The “Crypto Boom” has stirred up a commotion in online and face to face commerce. 178
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This commotion is a predictable growing pain. Changes in routine are met with resistance at all levels of existence from the microscopic intricacies of our very molecular makeup, all the way to the limits of our atmosphere surrounding planet Earth. Most often we experience this when a child stomps his feet in protest to his
toy being taken away or when the workplace implements a change in rules. It is natural that as things change there will be some discomfort along the way, we are genetically programmed this way. How else would we ever enjoy our lives if the experience along the way wasn’t sprinkled
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with challenges and obstacles? How would humanity have survived and risen to the top of the food chain if we simply accepted things as they were before our earliest ancestors decided to stand upright? This opened up everything because now we had two built-in tools, called feet, to travel, and another set- our hands to build things with and handle objects while traveling. What if mankind stopped there before ever inventing the wheel?
Crypto Boom Was Bound To Happen Technology as a concept is a marvelous contradiction because as we learn to use new tools it all seems very complex and overwhelming. Ironically most technological innovations are created to make our lives more convenient and less burdensome. Technology acts as an extension of human thought and through it, our species thrives. Humankind lives out its years in a way that demonstrates mastery of our surroundings, with modern luxuries like electricity, computation tools, and, mobile devices that include a world in a tiny rectangle.
Crypto Boom Meets Resistance, Naturally With blockchain technology, we have seen great improvements in the way businesses make agreements with one another. Nobody can examine what blockchain offers and then say with a straight face “It isn’t better than how it is done now”. The reason is simple once people understand why blockchain ledgers make more sense than traditional accounting and record keeping. Bankers don’t have to like this fact for it to be true. This is an example of a growing pain that will be smoothed over, with time and care. Anyone who has enough intellectual ability to get hired at the bank, once shown the reasons that blockchain makes more sense in accounting than current methods, ultimately agrees that blockchain is the best way to keep records of transactions. They quickly learn that the most discernible qualities that a blockchain possesses are hard to beat. Chief Technology Officer at R3, Richard Brown articu-
lated this as “The blockchain bundle” which is a list containing 5 stand apart qualities that make a blockchain sexier than old reconciliation reports, every time. Those 5 superior and defining blockchain qualities as he explains are absolutely present in every blockchain.
The 5 Blockchain Superiorities Consensus – Transactions or other data is verified multiple ways by multiple parties unrelated to the data itself. The new part of old consensus is unrelated parties- because there is no need for trust between them. Trust is not an issue here in the trustless consensus which alleviates the number of errors in calculations and the potential for loss at the hands of thieves or other deviant-minded middlemen. Validity– After agreeing with each other that the information in a transaction is true it is deemed valid and correct and is permanently added in sequence to the public ledger. Uniqueness – The blockchain offers solutions for problems that apply uniquely to its application, and it can be used in any circumstance that Core Magazine
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requires record keeping from simple to complex. Immutability– Each block is added to the chain of blocks representing all the events or transactions that have taken place. You can’t erase, undo or manipulate block data that has already been deemed valid by consensus. Authentication – The network authenticates transactions as they get recorded and confirmed, and finally the transaction is closed. At this stage the details are irreversible and forever traceable without revealing private data of the people behind the wallet addresses.
The Crypto Boom Is Inevitable When a protest gets loud enough that the media picks up on it, you will see things like the Chase Bank Executive, Jamie Dimon flailing about in a drowning panic. Even for cases like that of the ever-offensive Jamie Dimon, it is not long until corporate bosses concede the point, and are probably seen enrolling in companywide blockchain classes or filing patents for blockchain concepts by the dozens. Recently, 180
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pur-
chased several domains with hints of blockchain or cryptocurrency related keywords which caused a stir of rumors of some form of crypto adoption. Amazon responded that the purchase of the domains was to prevent others from claiming the names and spoofing services illegally, and to protect brand integrity. It makes you wonder why, then, did they conduct a survey where consumers were asked how they felt about using an Amazon-specific currency? Among the variety of big brands that have been in the headlines regarding blockchain and cryptocurrency, there is news of PayPal suiting up to dive into some crypto relevant business. The timing is intriguing because in a separate bit of news, the popular wallet service and cryptocurrency exchange, Coinbase, announced on its blog that is will temporarily disallow PayPal within the Coinbase application.
for 2 weeks. We will disable PayPal entirely on Wednesday, March 7th until we can overhaul the entire experience.” Coinbase Blog by Zach Abrams While PayPal is busy trying to make it right with Coinbase, other big brands are leaping into the crypto space, offering merchants great tools to enable cryptocurrency shoppers to spend freely, like UTRUST who is happily stepping up as a self-declared “better-thanPaypal payment alternative”. UTRUST converts buyer’s crypto into the merchant’s preferred or local currency on the spot. Also entering the arena are companies such as BitRewards offering incentives for customer loyalty through partner merchants via their loyalty points system using cryptocurrency.
Existing Crypto Companies and Exchanges React To Crypto Boom With Caution
“Our current PayPal offering is not meeting customers’ expectations. So, on Tuesday, February 20th, we temporarily It is not a surprise that re-enabled support the existing companies and
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exchanges who operate within the crypto space are starting to update their company policies and changes are announced in the news at regular intervals. Bittrex, the exchange that is always at the top of the list in terms of average daily trade volume added new verbiage to their terms of service that say “Bittrex may require you to verify that any External Address to which you seek to transfer Tokens is associated with an Approved External Account.”. This is similar to an initiative rumored to begin at Coinbase, but to date, no notable changes are found in the Coinbase terms stating the requirement yet. Perhaps these crypto companies are trying to prepare to dance with the world because after all, the world wants a piece of the crypto-pie.
Pop Culture and The Crypto Boom Popular culture is fast embracing all thing to do with the crypto boom because of the positive and negative buzz. Children are even growing
large audiences on their YouTube channels that promote cryptocurrency learning tools for kids. The Crypto Kid, a mini- spokesman for URAllownace (pronounced “your allowance”) was shared with millions of people when John McAfee took an interest in the concept which will introduce something called “family smart contracts”. Regardless of merit, people are swayed when someone as gorgeous and famous as Paris Hilton talks about ICOs and they laugh when they see famous rappers like 50 Cent sweat in front of a judge over his nondisclosure of ownership of a rather large stash of bitcoin. Even old Warren Buffet has turned people on to bitcoin despite his regular rants on the topic. This is a blockchain party- and EVERYONE will be there. The fun already started, but this crypto boom party may never end. Welcome, to the future.
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Japan to Persuade G20 for Crypto Anti-Money Laundering Push
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apan plans to persuade the G20 members in improving regulations that will help curb money laundering activities. Notably, many governments, including that of Japan, strongly believe that cryptocurrency is increasingly being used for money laundering purposes.
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Money Laundering Regulations It would be a massive undertaking for Japan to influence the leaders of the G20 countries to agree on specific crypto anti-money laundering regulations. There are many reasons for such obstacles and potential disagreements among the nations’ leadership. The discussions will focus
on how to take practical steps to ensure protection against money laundering using cryptocurrencies. The meeting, as per some insiders privy to the details, will also go over cryptocurrency trading and its impacts on the traditional banking system. Similarly, the underlying feeling among the G20 participants is that applying very stringent regulations against money laundering through
Blockchain News
ing and other illicit activities. Presently, the Japanese policymakers fear that although most of the G20 member nations believe in taking crypto anti-money laundering steps, some nations want less stringent regulations than the others. Therefore, under such kinds of disagreements over policy formulation and setting up regulations, they believe it would leave loopholes.
cryptocurrencies may not be a great idea.
The Upcoming G20 Meeting and FATF’s Findings
The next G20 meeting is going to take place on March 19th and 20th in Buenos Aires. One of the meeting’s top agenda items is said to be cryptocurrencies. During the G20 event, the Financial Risk Task Force, or FATF, a group consisting of 37 nations (set up by G7 industrial powers), is going to present its report. As stated earlier, the task will be use the findings from the report to come up with ways to prevent cryptocurrencies from being used for money launder-
Japan is at the forefront of cryptocurrency trading, although it did also carry out its own checks before giving the go-ahead. Moreover, since Japan has seen a massive theft of over $530 million worth of digital currency from the country’s Coincheck cryptoexchange, it has launched a crackdown on illicit activities related to cryptocurrencies. The crackdown includes monitoring the use of digital currencies in money laundering.
G20 & What Other Countries May Propose
While Japan has its own list of items on the agenda for the G20, Germany and France also plan to contribute through what appears to be
a joint proposal. Reportedly, their proposal will aim to suggest methods to monitor the cryptocurrency market by developing a comprehensive regulatory framework. Notably, one of the EU watchdogs of the cryptocurrency space stated that the short-term strategy will be to apply crypto anti-money laundering rules which would also curb terror financing. Furthermore, he pointed towards building awareness among consumers about the potential risks of dealing with cryptocurrency based money laundering.
Challenges Ahead in Implementation of Crypto AntiMoney Laundering Regulations
Many G20 nations believe that their regulatory efforts should not stifle the innovation in blockchain technology. since it can offer a lot of benefits for different industries. Additionally, because there are different laws in every country, setting up international ICO regulatory rules will be quite difficult. Some of the challenges that they need to address include Core Magazine
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the following. Since cryptocurrencies fall into payment systems, commodities, and currencies, it would be difficult to devise and apply the same rules to different cryptos. That’s because each crypto-platform tries to offer a unique set of services. Similarly, each country will have to deal with its traditional banking system. For example, a recent report by Banque de France, the country’s central bank, explained that Bitcoin cannot be considered by consumers as a means of payment or real currency. So, interpretations by central banks of each country may differ greatly, making it hard for the ordinary consumers to determine just which rules to follow.
There is also a difference of interpretation between different bodies within the same country. For instance, Financial Crimes Enforcement Network in the US says cryptocurrencies have value. However, Commodity Futures Trading Commission in the US defines cryptocurrencies as commodities. The identity of the user remains a big question mark and something that worries the traditional banking systems. Finally, the ability of Bitcoin or other cryptocurrencies to send money across borders also comes raises regulatory concern
regulate the crypto industry. It’s also obvious that an effective regulatory framework for cryptocurrencies is not something the can be developed overnight. It will definitely be a laborious and time-consuming task. Farrukh
Clearly, authorities around the world have their work cut out for them when trying to
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Bytecoin, The Father Of Privacy-Focused Cryptocurrencies The First Cryptonote Based Crypto
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ytecoin, created on 4th July 2012, is one of the first truly anonymous coins and the first cryptocurrency based on the Cryptonote technology. Since then, lots of privacy
coins have been forked off Bytecoin. Notably, the popular Monero (XMR) and Dashcoin (DSH) are among the many coins forked off Bytecoin. Given the emergence of so many privacy-focused coins, Bytecoing has still managed to stay relevant. This might be because it has stuck to its original
design principles: anonymity and privacy. Now though, the platform has improved since it offers faster transactions. Additionally, there are plans to add more useful and exciting features in the near future. The Cryptonote technology, on which Bytecoin is based, is the cornerstone of most privacy coins. This tech-
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nology, which is quite different from that of Bitcoin, provides unique features, that cryptocurrencies based on it, use to give users privacy and anonymity in crypto transactions.
Units (CPUs) or Application Specific Integrated Circuits (ASICs). ASICs are more efficient in mining simply because they are specifically made to perform particular functions.
Statistics on coinmarketcap. com at the time of writing this show Bytecoin priced at $0.002652 with a market cap of $487,474,912. There is also a cap on total supply that sets the limit to 184,470,000,000 coins (that can ever exist). With a circulating supply of about 183,784,653,122, Bytecoin is close to reaching the 184,470,000,000 coin cap.
Bytecoin is still GPU and CPU mineable. Its ASIC resistance feature means using specialized mining equipment for mining it would not be much more profitable than using GPUs and CPUs. The purpose of this feature is to make mining more decentralized and probably fairer.
Mining Bytecoin
Mining is the process of using computing power to solve complex math problems in order to verify transactions on a blockchain. The reward for this is a stated amount of the cryptocurrency being mined. Mining can be done using Graphics Processing Units (GPUs), Central Procession
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What Makes Bytecoin Private And Anonymous?
Ring Signatures from the Cryptonote protocol is pivotal in Bytecoin’s anonymity. Ring Signatures hide the address of the sender of a transaction. Information on funds being sent by a user is “mixed” with that of other funds being sent on the blockchain. The “mixing” is
done in a manner that makes it impossible to determine which source of funds is the real one. With this method, the sender of a transaction could deny being the source of funds since all other addresses used in the mixing process could have been the sender of the said transaction. Furthermore, anonymity on Bytecoin is passive. Users don’t have to take any extra actions to ensure privacy. This is because the features that allow privacy on the network are set as the default. This is good for non-tech savvy users and doesn’t draw suspicions that could come with taking extra action to conceal transaction information.
Upcoming Developments On Bytecoin
We get an idea of the developments and improvements to expect on Bytecoin from their
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Roadmap document, as well as the recent Ask Me Anything session organized on Reddit. A major development to watch out for is a hardfork slated for 12th June 2018.
Bytecoin after the cap on total supply is reached.
The idea behind this hardfork is to start using a new code base which is more user-friendly and easier to maintain. Development on the old code base would cease after the hardfork. Also, with Bytecoin quickly approaching its maximum number of mineable coins, the dynamic fees feature to be introduced in 2018 is welcome news. Miners can still be incentivized to mine
With respect to marketing, the team plans to reach out to the Asian, Middle East and African markets. New partnerships and listing on new exchanges were also promised in the 2018 roadmap document.
The team also revealed that there were plans to develop a new Android wallet for users.
Will The Mission Be Accomplished?
Even though its one of the oldest cryptocurrencies, By-
tecoin has tough competition from other privacy-focused coins. The competition would, however, not be a problem if the mission of Bytecoin is anything to go by: “To develop a new financial system, more efficient than the existing ones.” A single coin doesn’t have to rule for this mission to be achieved. Also, at this rate, we should get there soon. Elikem Kofi Attah elikem@coregroup.info
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Bitcoin Gold, Making Bitcoin Decentralized Again? 188
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Fork No 2 The Bitcoin Cash hardfork was about increasing block size as a solution to congestion and high transaction fees on the Bitcoin network. The fork went ahead despite disagreements within the community and amidst fears that it would negatively impact Bitcoin. It, however, resulted in two versions of Bitcoin with value. One could say money was created out of thin air. This opened the floodgates for other forks of Bitcoin. Bitcoin Gold was the first to follow in the steps of Bitcoin Cash. The Bitcoin Gold hardfork was not a contentious one. The goal was to, as the creators put it, “make Bitcoin decentralized again”. They were going to go about this by changing the mining algorithm to Equihash. This was going to make it easier for anybody to get involved with mining using GPUs, because ASIC miners would not have any advantage in terms of speed and profitability.
Pre-Fork Sentiments Some welcomed the fork mainly because they could not
complain about free coins or what became known as crypto dividends. The idea was that the expectation of future forks would cause holders of Bitcoin to keep holding. Basically, this was good for Bitcoin’s price in general. There was also the view that more forks would dilute the relevance of Bitcoin Cash. The fact that Bitcoin Gold was not in competition to become the real Bitcoin also helped. Not all the views on Bitcoin Gold before the fork were positive. Many Reddit posts called the fork an outright scam. Many had issues with the pre-mine done by the Bitcoin Gold team in order to fund the project. The change of the mining algorithm was also not enough to convince some members of the cryptoshpere on the need for the Bitcoin gold fork. They felt there was a long list of ASIC resistant cryptocurrencies to choose from, which made this hardfork unnecessary. Vertcoin and Monero were examples of such ASIC resistant cryptocurrencies. On 25th October 2017, the fork happened in spite of all these issues. The mainnet launch followed on 12th November, 2017.
Post-Fork Issues Trezor and Ledger are leaders when it comes to hardware wallets for cryptocurrencies. Either of these two hardware wallet makers adding support for any cryptocurrency helps to legitimize the said cryptocurrency. With Trezor having support for fewer coins, being added to its list of supported coins surely meant a lot. Bitcoin Gold eventually got Trezor’s support. This was after the wallet’s team waited to see if the mainnet was launched and safe. Along the way, some malicious wallets that claimed to support the fork scammed a number of people out of their Bitcoins. These wallets had to be removed from the list of wallets on the official Bitcoin Gold website. The Bitcoin Gold team was heavily criticized for this as well. All else went smoothly after the fork occurred. The push to get listed on more exchanges began and was fairly successful. Bitcoin Gold is now listed on over 20 exchanges including Binance, Bithumb, Bitfinex, Bittrex, and HitBTC In the end, Bitcoin Gold had Core Magazine
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a good start in terms of price. CoinMarketCap.com shows it opened at around $500 and declined over the months to $59.09 by 23rd March 2018. At the time of writing, it was ranked 23rd by market cap, but started in the top ten.
Features and Developments In terms of features, Bitcoin Gold did not change much apart from the Bitcoin mining algorithm. SegWit support was not removed and the team plans to have Lightning on Bitcoin Gold in the future. There has also been considerable effort by the Bitcoin Gold team to foster the growth of their community and also increase adoption. Bitcoin
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Gold has been listed on several exchanges and there are a number of supporting wallets.
added to this platform further extends its usability and reach as a cryptocurrency.
The BTGPay program is one such effort aimed at increasing adoption. BTGPay helps merchants, who wish to accept Bitcoin Gold, integrate it into their payment systems. On the other end, holders get more places they can spend their coins.
We will continue to follow Bitcoin Gold and see how it stays on from here. If what has been achieved in less than six months is anything to go by, we are likely have a cryptocurrency with continuous improvements. My guess is that with a continuous growth in its community and ecosystem, the digital currency would continue to be used and have value.
Bitcoin Gold was also integrated into BitGo’s multicurrency platform early on. Other cryptocurrencies on this list are Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. BitGo mainly serves institutions with regards to the handling of cryptocurrency transactions in a regulation-compliant manner. Bitcoin Gold being
Elikem Kofi Attah elikem@coregroup.info
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CLASSIFIEDS
payment methods. EventChain tokens are currently trading on Livecoin.net and Etherdelta. _______________ Pinnacle connects all major crypto, forex, & stock exchanges into a single platform and executes core functions on the Stellar blockchain. This allows for unparalleled speed & copy trading validation. The ICO is live through April 25. Visit pinnaclebrilliance.com for more details.
Event Chain https:// EventChain.io EventChainTM is a blockchain token network utilizing a smart contract ticketing system that solves many existing problems. EventChain will more directly connect artists and fans with the use of EVC Tokens and other traditional
URAllowance.com Family Smart Contracts
brought to life the idea for the URAllowance platform and Family-Smart Contracts. Chores are now tracked, rewarded and a part of the learning tools available to URAllowance users. The Crypto Kid is catching on quickly, and you are invited to see just how much a kid can learn.
Blockchain technology is the future so children should be learning about cryptocurrency, which Core Magazine
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begins March 25. Visit tse.bitnation.co for more details. _______________
BitNautic https://bitnautic. io/en BitNautic is a decentralized marketplace for shipping and cargo all over the globe. Bitnautic is also a blockchain-fueled e-commerce platform with exclusive benefits for its users. The BitNautic Pre-ICO starts on 15th April 2018. _______________
The future is governance, not governments. Bitnation aims to bring about this future with its Pangea polylegal jurisdiction smartphone app. Using Pangea Citizens can create and join virtual nations and exchange peer-to-peer governance services. Bitnation’s token sale 192
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Interplanetary BroadCast Coin Ipbc. io is building a worldwide content platform, that uses blockchain technology to even the playing field and to reward users based on performance and activities in the app. Sharing and streaming your favorite entertainment can be profitable now. ______________
Visit RewardMob. com for a gamers paradise with rewards, prizes and a touch of crypto. _______________
HELP WANTED
“Harnessing The Benefits Of Technology For The Good Of Humanity” Seeking rare talent to join the Crypto Core Family. Our team is hand picked and each one of us has a certain brilliance that resonates throughout the globe. If you have skills in language, sales, productivity and merchandising especially if it is relevant to crypto, you may be a good fit. Contact the team by going to CryptoCoreMedia.com and clicking on the slack icon - once you join in the conversation we can go from there. Good times ahead! “Harnessing The Benefits Of Technology For The Good Of Humanity” ______________ Joke: Where should the military keep their armies? Answer: In their sleevies
United Power
unipower.io Wanted: 2 Blockchain Developers Las Vegas Nevada. The right candidate will be granted a relocation assistance from certain areas (some restrictions apply- details during interview if applicable) Generous six figure salary to start. Medical, dental, and many other benefits. Contact Felicia for a confidential talk about your future. Contact Felicia, and tell her CoreMagazine sent you. Felicia. miller@unipower.io _______________
FOR SALE
AntminerS9 + +PSU like new. .23 bitcoin. Contact @Hanz2 on telegram. _______________ Altcoins. BTC, Gold wanted! Email brian2109@gmail. com
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PERSONALS male:
Male to Fe-
Hi. Late looks good on you, in that hemisphere. How is that equator treating you? Prime Meridian, Next time. _______________ Hey, Unicorn
ten wound heals nicely now. Madly, stupidly, utterly in love. Never can break what you don’t touch. Separated by half globes thank you for being impossible. _______________ Male to Female:
Naked admirer!
Truth is medicine, resssssssssssssand healing happens now. I will probably never stop this whole “being me” thing. Since you keep staying, I think it is clearly in the stars. Bleep boop beep too, so much. ______________ Female to Male It was all a foggy dream until it all came into focus. I’m Alive. A friend, a spiritual hand that fed, the bit-
The apple fell close to the tree for a change! Little lady, you are a beautiful one. Your favorite person in your mom, and your favorite crypto is Waves. Smart. Pretty. I know you will see this too. When you figure out who I am, drop a hint. Maybe just a wink. _______________
Female to Male Friends?
You are where the grasses grow tall and molasses is not slow. Sometimes when the world doubts that I can do my job, I remember what you said in a joke. You said “girls should be cookin’, hookin’ or good lookin’.” That is when I realize I am glad I am no longer working in the same company as you. Still, you are my best friend. One round, once a month, you owe me that much. Friend zone is not the end zone. ______________ Male to Male Friends
Are they coming to the cabin this Summer? I hope so. Bring the kids, bring extra shoes this time too! Scorpions are HUGE at the spot. I wanted to say sorry Man about last year, I was drunk.
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I wont get stupid like that ever again. Hope your wife doesn’t hate me. Mine hated me for 3 months after the trip. If you see this - come to Summer spot. Me and the girls are all packed. ______________ Send a Note To Someone Leave a note for a friend or lover, a crypto- crush or a secret brother. Whatever the reason, your words are welcomed and safe- but remember the only rules are *No Names *No Faces *No Places Notes will be ignored if they break the above rules or if they imply illegal activities or if you are mean. Otherwise have fun! ______________
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