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What is Bitcoin?

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

Bitcoin Latest News

Actor Steven Seagal Endorses Questionable 'Bitcoiin' ICO

Action film star Steven Seagal has become the brand ambassador for a controversial cryptocurrency ahead of an initial coin offering (ICO).

Posted on 19 February 2018 | 3:20 pm

Bitcoin's Developers Are Debating A Change To Its Open License - Investopedia (blog)


Investopedia (blog)

Bitcoin's Developers Are Debating A Change To Its Open License
Investopedia (blog)
Ever since its launch last August, bitcoin has had an antagonistic relationship with its offshoot, bitcoin cash. But their battle may have provided a trigger to seek ways to protect bitcoin's core code from indiscriminate use. If a proposal to change ...

Posted on 19 February 2018 | 2:43 pm

Who's Said What About the Coinbase-Visa Payment Dispute

A Visa spokesperson claimed that neither it nor Coinbase were responsible for last week's charging issue seen by the crypto-exchange's customers.

Posted on 19 February 2018 | 2:00 pm

How to Buy and Sell Bitcoin for Beginners - Westchester Magazine


Westchester Magazine

How to Buy and Sell Bitcoin for Beginners
Westchester Magazine
Digital currencies have had a hell of a first quarter, and it's barely February. Bitcoin — and by extension nearly all other cryptocurrencies —soared to record highs at the end of 2017, before plummeting two-thirds in value. As I write this, the ...

and more »

Posted on 19 February 2018 | 1:14 pm

Israel Confirms It Will Tax Bitcoin as Property

Israel has confirmed that it will treat cryptocurrencies as taxable assets in a new circular published on Monday.

Posted on 19 February 2018 | 12:40 pm

Visa Created Duplicate Bitcoin Cryptocurrency Transactions - Forbes


Forbes

Visa Created Duplicate Bitcoin Cryptocurrency Transactions
Forbes
The first is that it doesn't help with the image of cryptocurrencies, such as Bitcoin, becoming accepted. Very large and mature companies such as Visa and Worldpay (now owned by Vantiv) shouldn't be creating duplicate transactions. The second is that ...

and more »

Posted on 19 February 2018 | 12:08 pm

HashChain Technology Acquires Blockchain Company NODE40

HashChain Mining Operation Acquires NODE40 Blockchain Technology Company

HashChain Technology Inc. (HashChain) has acquired the blockchain technology company NODE40 for $8 million USD and 3,144,134 common shares of stock in HashChain (TSXV: KASH) (OTCQB: HSSHF).

HashChain is a Canadian-based crypto-mining company that currently operates 100 Dash mining rigs and is in the process of setting up nearly 4,000 more to mine bitcoin. By locating in Canada, they are able to take advantage of both the very low electrical rates for power and the cool climate for data center cooling.

Having recently gone public on the TSX Venture Exchange, the company was looking to diversify their business beyond crypto-mining and have now acquired NODE40, a company that develops Software as a Service (SaaS) products related to cryptocurrency.

HashChain CEO and Founder Patrick Gray said, “The acquisition of the NODE40 Business is an important next step of creating a global blockchain technology company."

On the hardware and mining side, NODE40 runs a managed service for running your own Dash masternode. Masternodes get paid 45 percent of the monthly block reward as incentive for providing services to the network.

On the software side, NODE40 provides the SaaS product NODE40 Balance (Balance), which determines accurate valuations for each input/output involved in a user’s transaction by using cryptocurrency transaction history and analyzing the blockchain. Once a value is assigned to each transaction, then Balance will report the users’ current total asset value, income and any realized gains or loses.

"Cryptocurrency accounting and reporting for tax purposes is a major concern in the industry at the moment,” said Gray. “The recent Coinbase subpoena from the IRS highlights the significant need for the software developed by NODE40."

The acquisition was finalized on February 15, 2018.

This article originally appeared on Bitcoin Magazine.

Posted on 19 February 2018 | 11:21 am

Long Blockchain Is At Risk for Exchange Removal Again

Long Blockchain announced it would appeal a notice by Nasdaq informing it that its stock was at risk of being delisted.

Posted on 19 February 2018 | 11:20 am

Lithuania's Central Bank Probes 100 Million Euro ICO

Lithuania's central bank has said it is probing Bankera's initial coin offering after determining that the token offered counts as a security.

Posted on 19 February 2018 | 9:00 am

Bitcoin is back over $11000 - BGR


BGR

Bitcoin is back over $11000
BGR
It took Bitcoin more than two weeks to recover the ground it lost in early February when the most popular cryptocurrency in the world plunged below $6,000 for the first time since November. Bitcoin is nowhere near its record highs from mid-December ...
White House Official: Bitcoin Regulation Won't Happen Anytime SoonBitcoinist
We're Not Even Close to Regulating Bitcoin: US Cybersecurity CzarCryptovest
10 tips on how to pay taxes on Bitcoin and other cryptocurrenciesThe Daily Dot

all 27 news articles »

Posted on 19 February 2018 | 8:58 am

Someone Just Bought $400 Million Worth of Bitcoin - Fortune


Fortune

Someone Just Bought $400 Million Worth of Bitcoin
Fortune
An anonymous trader has sunk $400 million—enough to buy New York State's most expensive home twice with change left over—into the cryptocurrency, raising his or her stake from 55,000 coins to more than 96,000 between Feb. 9 and Feb. 12. And that buy ...
Bitcoin price LIVE: BTC edging closer to $11k for first time since JanExpress.co.uk
$400M Bitcoin Buy for Crypto TraderPYMNTS.com
Bitcoin surging higher after mystery trader buys $344mn in cryptocurrencyRT
AMBCrypto
all 31 news articles »

Posted on 19 February 2018 | 8:41 am

$850 Million Raised in ICO So Far, Says Telegram

Messaging app provider Telegram has raised an initial $850 million in its controversial initial coin offering (ICO), according to a public document.

Posted on 19 February 2018 | 7:20 am

Sidechains: Why These Researchers Think They Solved a Key Piece of the Puzzle

Sidechains and Why These Researchers Think They Solved a Key Piece of the Puzzle

New blockchains are born all the time. Bitcoin was the lone blockchain for years, but now there are hundreds. The problem is, if you want to use the features offered on another blockchain, you have to buy the tokens for that other blockchain.

But all that may soon change. One developing technology called sidechains promises to make it easier to move tokens across blockchains and, as a result, open the doors to a world of possibilities, including building bridges to the legacy financial systems of banks.

In October 2017, Aggelos Kiayias, professor at the University of Edinburgh and chief scientist at blockchain research and development company IOHK; Andrew Miller, professor at the University of Illinois at Urbana-Champaign; and Dionysis Zindros, researcher at the University of Athens, released the paper “Non-Interactive Proofs of Proof-of-Work” (NiPoPoW), introducing a critical piece to the sidechains puzzle that had been missing for three years. This is the story of how they got there.

But, first, what exactly is a sidechain?    

Same Coin, Different Blockchain

A sidechain is a technology that allows you to move your tokens from one blockchain to another, use them on that other blockchain and then move them back at a later point in time, without the need for a third party.  

In the past, the parent blockchain has typically been Bitcoin, but a parent chain could be any blockchain. Also, when a token moves to another blockchain, it should maintain its same value. In other words, a bitcoin on an Ethereum sidechain would remain a bitcoin.  

The biggest advantage of sidechains is that they would allow users to access a host of new services. For instance, you could move bitcoin to another blockchain to take advantage of privacy features, faster transaction speeds and smart contracts.  

Sidechains have other uses, too. A sidechain could offer a more secure way to upgrade a protocol, or it could serve as a type of security firewall, so that in the event of a catastrophic disaster on a sidechain, the main chain would remain unaffected. “It is a kind of limited liability,” said Zindros in a video explaining how the technology works.

Finally, if banks were to create their own private blockchain networks, sidechains could enable communications with those networks, allowing users to issue and track shares, bonds and other assets.

Early Conversations

Early dialogue about sidechains first appeared in Bitcoin chat rooms around 2012, when Bitcoin Core developers were thinking of ways to safely upgrade the Bitcoin protocol.

One idea was for a “one-way peg,” where users could move bitcoin to a separate blockchain to test out a new client; however, once those assets were moved, they could not be moved back to the main chain.  

“I was thinking of this as a software engineering tool that could be used to make widespread changes,” Adam Back, now CEO at blockchain development company Blockstream, said in an interview with Bitcoin Magazine. “You could say, we are going to make a new version [of Bitcoin], and we think it will be ready in a year, but in the meantime, you can opt in early and test it.”

According to Back, sometime in the following year, on the Bitcoin IRC channel, Bitcoin Core developer Greg Maxwell suggested an idea for a “two-way peg,” where value could be transferred to the alternative chain and then back to Bitcoin at a later point.

A two-way peg addressed another growing concern at the time. Alternative coins, like Litecoin and Namecoin, were becoming increasingly popular. The fear was these “altcoins” would dilute the value of bitcoin. It made sense, Bitcoin Core developers thought, to keep bitcoin as a type of reserve currency, and relegate new features to sidechains. That way, “if you wanted to use a different feature, you wouldn’t have to buy a speculative asset,” said Back.

To turn the concept of sidechains into a reality, Back along with Maxwell and a few other Bitcoin Core developers formed Blockstream in 2014. In October that year, the group released “Enabling Blockchain Innovations with Pegged Sidechains,” a paper describing sidechains at a high level. Miller appears as a co-author on that paper as well.

How Sidechains Work

One important component of sidechains is a simplified payment verification (SPV) proof that shows that tokens have been locked up on one chain so validators can safely unlock an equivalent value on the alternative chain. But to work for sidechains, an SPV proof has to be small enough to fit into a single coinbase transaction, the transaction that rewards a miner with new coins. (Not to be confused with the company Coinbase.)

At the time the Blockstream researchers released their paper, they knew they needed a compressed SPV proof to get sidechains to work, but they had not yet developed the cryptography behind it. So they outlined general, high-level ideas.

The Blockstream paper describes two types of two-way pegs: a symmetric two-way peg, where both chains are independent with their own mining; and an asymmetric two-way peg, where sidechain miners are full validators of the parent chain.

In a symmetric two-way peg, a user sends her bitcoins to a special address. Doing so locks up the funds on the Bitcoin blockchain. That output remains locked for a contest period of maybe six blocks (one hour) to confirm the transaction has gone through, and then an SPV proof is created to send to the sidechain.

At that point, a corresponding transaction appears on the sidechain with the SPV proof, verifying that money has been locked up on the Bitcoin blockchain, and then coins with the same value of account are unlocked on the sidechain.

Coins are spent and change hands and, at a later point, are sent back to the main chain. When the coins are returned to the main chain, the process repeats. They are sent to a locked output on the sidechain, a waiting period goes by, and an SPV proof is created and sent back to the main blockchain to unlock coins on the main chain.  

In an asymmetric two-way peg, the process is slightly different. The transfer from the parent chain to the sidechain does not require an SPV proof, because validators on the sidechain are also aware of the state of the parent chain. An SPV proof is still needed, however, when the coins are returned to the parent chain.

Search for a Compact Proof

In a sidechain, a compact SPV proof needs to contain a compressed version of all the block headers in the chain where funds are locked up from the genesis block through the contest period, as well as transaction data and some other data. In this way, an SPV proof can also be thought of as a “proof of proof-of-work” for a particular output.

Inspiration for the compact SPV proof comes from a linked-list-like structure known as a “skip list” developed 25 years ago. In applying this structure to a compact SPV proof, the trick was in finding a way to skip block headers while still maintaining a high level of security so that an adversary would not be able to fake a proof.

In working through the problem, Blockstream showed an early draft of its sidechains paper to Miller, who had been mulling over compact SPVs for a few years already.

In August 2012, in a post on a BitcoinTalk forum titled “The High-Value-Hash Highway,” Miller described an idea for a “merkle skip list” that a Bitcoin light client could use to quickly determine the longest chain and begin using it. In that post, he described the significance of the data structure as “absolutely staggering.”

When Miller read through the Blockstream draft, he spotted a vulnerability in the compact SPV proof described in the paper. Discussions ensued, but they “couldn’t find a way to solve that problem without compromising efficiency,” Miller said.

Miller’s non-trivial contributions to the Blockstream paper ended up being a few paragraphs in Appendix B that describe the challenges in creating a compact SPV proof.

It should “be possible to greatly compress a list of headers while still proving the same amount of work,” the section reads, but “optimising these tradeoffs and formalising the security guarantees is out of scope for this paper and the topic of ongoing work.”

That ongoing work remained stuck for three years.

Making It Non-interactive

During that ensuing time, researchers at IOHK began taking a more serious interest in sidechains. Plans were taking shape for Cardano, a new proof-of-stake blockchain that IOHK had been contracted to build.

Cardano would consist of two layers: a settlement layer, launched in September 2017, where the money supply would be kept, and a smart contract layer. Those two layers would be two sidechain-enabled blockchains. In this way, the settlement could remain simple and secure from any attacks that might occur on the smart contract layer. But if IOHK was to get Cardano to work as intended, it needed to solve sidechains.

In February 2016, Kiayias, then a professor at the University of Athens, and two of his students, Nikolaos Lamprou and Aikaterini-Panagiota Stouka, released “Proofs of Proofs of Work with Sublinear Complexity” (PoPoW).

The paper was the first to formally address a compact SPV proof. Only, the proof described in the paper was interactive; whereas, to work for sidechains, it needed to be non-interactive.

In an interactive proof, the prover and the verifier enter into a back-and-forth conversation, meaning there could be more than one round of messaging. In contrast, a non-interactive proof would be a simple, short string of text that would fit neatly into a single transaction on the blockchain.

The PoPoW paper was presented at BITCOIN’16, a workshop affiliated with the International Financial Cryptography Association’s (IFCA) Financial Cryptography and Data Security conference. Miller, who was at the conference, approached Kiayias and shared an idea for making the protocol non-interactive.

It was a “nice observation,” Kiayias told Bitcoin Magazine, but making the proof secure was “not obvious at all” and would require significant work.

Zindros, who had just started working on his PhD under Kiayias, was also at the conference, and he needed a topic for his thesis. Kiayias saw a good fit, “so we pressed on, the three of us, and adapted the PoPoW protocol and its proof of security to the non-interactive setting,” Kiayias said.

In October 2016, Kiayias officially joined IOHK, and a year later, Kiayias, Miller and Zindros released “Non-Interactive Proofs of Proof-of-Work,” introducing a compact SPV proof five years after sidechains had first been talked about on Bitcoin forums.

“If it were interactive, I don’t know if it would have worked; with a non-interactive proof, it is really smooth,” Zindros told Bitcoin Magazine.

More Work to Be Done

Even with NiPoPoW, sidechains are still not fully specified. Several questions remain, including, how small can the proofs be made? After a transaction is locked up on one chain, how much time needs to pass before it can be spent on the other? And, will it be possible to move a token from a sidechain directly to another sidechain?

“A lot of theory still needs to be defined,” IOHK CEO Charles Hoskinson said in speaking to Bitcoin Magazine.

Also, while NiPoPoW is designed to work for proof-of-work blockchains, some believe that if blockchains are to take their place in the world on a grand scale, the future rests in proof-of-stake protocols like Ouroboros, Algorand or Snow White, which promise to be more energy-efficient than Bitcoin.

In particular, if Cardano, which is based on Ouroboros, is to work according to plan, IOHK researchers still need to discover a non-interactive proof of proof-of-stake (NiPoPoS).

Hoskinson is confident. “We can definitely do that,” he said. “We can definitely have a NiPoPoS. The question is how many megabytes or kilobytes is it going to be? Can we bring it down to 100 KB? That is really the question.”

This article originally appeared on Bitcoin Magazine.

Posted on 19 February 2018 | 7:12 am

Record Retest? ETC Looks Poised on Double-Digit Climb

A prominent alternative to the ethereum blockchain is showing signs of building a higher base amid a period of strong market activity.

Posted on 19 February 2018 | 6:45 am

Coinbase. Ripple. Uphold? Greg Kidd Defends Bold Bet

Exuberant investor Gregg Kidd outlines his plans for Uphold, a profitable crypto startup that's largely flown under the radar until now.

Posted on 19 February 2018 | 6:00 am

Bitcoin Breaks $11k As New Support Forms And Analysts Turn Bullish - Cointelegraph (Bitcoin, Cryptocurrency and Blockchain News)


Cointelegraph (Bitcoin, Cryptocurrency and Blockchain News)

Bitcoin Breaks $11k As New Support Forms And Analysts Turn Bullish
Cointelegraph (Bitcoin, Cryptocurrency and Blockchain News)
Monday, Feb. 19: the Bitcoin price has surpassed $11,000 twice since Sunday as bullish sentiment returns to markets and new support begins to form. Data from Cointelegraph's price index shows a BTC/USD journey to a high of $11,190.10 Feb. 18, followed ...
Bitcoin takes fresh aim at $11000MarketWatch
Bitcoin Price: Will Bullish 'Flip' Finally Clear $11K Hurdle?Bitcoinist

all 22 news articles »

Posted on 19 February 2018 | 5:39 am

Australian Watchdog Received 1,200 Crypto Scam Complaints in 2017

The Australian Competition & Consumer Commission reportedly received over 1,200 complaints about cryptocurrency scams last year.

Posted on 19 February 2018 | 4:45 am

Bitcoin for buying juice? Only in Australia - CNET


CNET

Bitcoin for buying juice? Only in Australia
CNET
You thought you had to pay real money for bitcoin? Well you could do that, or you could enter Boost Juice's competition and win a bitcoin instead. If you live in Australia, that is. The Australian company on Monday announced its latest publicity stuff ...
Now juice stores are giving out Bitcoin as a competition prizeMashable

all 5 news articles »

Posted on 19 February 2018 | 2:00 am

Bancor Bounce Back? ICO Is Winning Adoption

Despite early skepticism on its tech amid a record-setting ICO, millions of dollars is now being traded each week by blockchain project Bancor.

Posted on 19 February 2018 | 2:00 am

PC Giant Lenovo Seeks Blockchain Validation Patent

New patent filings from Lenovo indicate the technology company hopes to use a blockchain-based system for the authentication of physical documents.

Posted on 19 February 2018 | 12:00 am

The Real Problem With Nocoiners

What makes a nocoiner a nocoiner is not simply the absence of cryptocurrency from his investment portfolio, but his sanctimonious attitude about it.

Posted on 18 February 2018 | 8:35 pm

In 10 Years We Won't Have Blockchains

Instead, we may have something that does what a blockchain does, only faster, cheaper and scalable. It'll look more like a graph than a linear chain.

Posted on 17 February 2018 | 4:00 am

Ethereum Game CryptoKitties Now Has Some Serious Rivals

CryptoKitties may be the best-known ethereum app, but other games are fast winning users and registering notable volumes for expensive collectables.

Posted on 17 February 2018 | 3:00 am

Swiss Regulator Gives Clear Guidelines for Launching ICOs

Swiss Regulator Gives Clear Guidelines for Launching ICOs

On February 16, 2018, the Swiss Financial Market Supervisory Authority FINMA put the world on notice by being the first major economy to set out clear guidelines on initial coin offerings (ICOs). In an announcement, the Swiss regulator addressed plans to apply financial market legislation to different tokens as well as lay out how ICO organizers can get proper input from FINMA when planning or launching their initial coin offerings.


The guidelines, offered as a downloadable PDF, show market participants what information is needed to help the Swiss regulator adequately address all issues presented in inquiries to the regulator, as well as how FINMA intends for current financial market legislation to be applied to ICOs. The published guidelines are intended to complement FINMA Guidance 04/2017, which in September 2017 addressed regulatory treatment of initial coin offerings.  

Important to note is FINMA’s concern over creating transparency. According to the regulator, “Creating transparency at this time is important given the dynamic market and high level of demand.”

FINMA also cited an increase in the number of inquiries corresponding with a sharp increase in the quantity of planned and executed ICOs in the country as a motivating factor for the move.

The regulator’s concern over transparency is clearly illustrated when they state in the guidelines that “ICOs raise a variety of legal issues for which there is no relevant case law and no consistent legal doctrine. Given the wide variety of types of token and ICO set-ups, it is not possible to generalise. Circumstances must be considered holistically in each individual case.”

The press release on the guidelines also provides useful information. The Swiss regulator highlighted that they would focus “on the underlying purpose of the tokens” and that the tokens were “tradeable and transferable.”

The release also showed how FINMA categorizes the tokens into three types — payment tokens, utility tokens and asset tokens (allowing for tokens to possibly take on aspects of more than one group) — and ascribes definitions for organizers to better understand their tokens’ potential assessment.  

Another major emphasis in the press release was on the guidelines’ role in displaying how FINMA will handle ICO inquiries regarding Anti-Money Laundering (AML) and securities regulations compliance. In the release, they referred market participants to the diagram on page 8 of the guidelines (as shown below), which distinguishes the regulator’s stance based on which of the three categories the tokens are put in.

Swiss Regulator Gives Clear Guidelines for Launching ICOs chart

While the press release does finish with a note to investors about the risks associated with investing in ICOs, the most important part of the announcement is the portion where FINMA highlights the “innovative potential” of blockchain technology. In it, FINMA CEO Mark Branson stated:

The application of blockchain technology has innovative potential within and far beyond the financial markets. However, blockchain-based projects conducted analogously to regulated activities cannot simply circumvent the tried and tested regulatory framework. Our balanced approach to handling ICO projects and enquiries allows legitimate innovators to navigate the regulatory landscape and so launch their projects in a way consistent with our laws protecting investors and the integrity of the financial system.

While regulations on ICOs are either ambiguously evolving or demonstrating outright hostility in other countries, FINMA has given a clear signal that it wants to provide transparency, open communication and certainty (where possible) to those launching ICO projects within the Swiss Confederation.

This article originally appeared on Bitcoin Magazine.

Posted on 16 February 2018 | 4:20 pm

FCC: Bitcoin Miner Interfered With T-Mobile Network

The Federal Communications Commission says a crypto mining rig has caused interference with T-Mobile's LTE network in Brooklyn, New York.

Posted on 16 February 2018 | 3:15 pm

Crypto Regulation? Not Anytime Soon, Says White House Official

The White House cybersecurity coordinator said crypto regulation is still far from becoming a reality.

Posted on 16 February 2018 | 1:00 pm

CFTC Advisory Committee Recommends Creation of Virtual Currency Subcommittee

CFTC Advisory Committee Recommends the Creation of a Virtual Currency Subcommittee

On Wednesday, the U.S. Commodity Futures Trading Committee’s (CFTC) Technical Advisory Committee (TAC) held a public meeting at its Washington, D.C., headquarters. During the meeting, members of the Bitcoin and cryptoasset industry shared information regarding this emerging market and offered guidance on how the CFTC may approach regulating the space in 2018.

Multiple participants in the public hearing made comments to differentiate between different types of cryptoassets and their associated technologies.

Potential regulation around cryptoasset exchanges was also discussed as a potential area for further regulation, as has been noted by regulators worldwide over the past few months.

By the end of the portion of the public hearing dedicated to virtual currencies, the TAC voted unanimously to recommend that the CFTC create a subcommittee for this new asset class.

Differentiating Between Different Types of Cryptoassets

One of the key points made by those who were invited to speak about the cryptoasset industry was that all of these tokens or coins should not necessarily be treated equally. For example, during his opening remarks, Coin Center Executive Director Jerry Brito discussed the differences between traditional cryptocurrencies, such as bitcoin, and initial coin offerings (ICOs).

“Cryptocurrencies like bitcoin are commodities, of course, as the SEC has previously [said].  Questions remain however about the borders [around] these categories and about how one can responsibly share tokens to future investors,” noted Brito.

Special Counsel Gary DeWaal of Katten Muchin Rosenman LLP went on to discuss the often-mentioned Howey Test and how it helps determine which types of tokens are securities under U.S. law. In DeWaal’s view, the CFTC could offer assistance in differentiating between commodities and securities in the cryptoasset market.

“Ultimately there has to be some clarification. The distinction between a commodity, the distinction between a security, may seem (from a common sense perspective) clear, but there are very, very important issues around those that I think this committee could very much [help clarify],” said DeWaal.

Notably, DeWaal also pointed out that cryptoassets are “critical” to decentralized ledgers.

“They are the mechanism in proof-of-work blockchains where miners are rewarded: In proof-of-state blockchains where fees are paid, these are the ways you incentivize folks to keep the system together. If you’re only talking about centralized ledgers, sure, you don’t need to worry about coins,” DeWaal added.

Regulation of Cryptoasset Exchanges

RGM Advisors’ chief executive, Richard Gorelick, also made an appearance at the CFTC’s public hearing, and he focused on the market structure of cryptoassets during his brief opening presentation (PDF). Gorelick was one of the only people in the room who referred to the subject at hand in terms of “cryptoassets” rather than “cryptocurrencies” or “virtual currencies.”

One of the key areas of focus for Gorelick during his presentation was the problems associated with current cryptoasset exchanges. More specifically, Gorelick discussed the issues associated with connectivity of liquidity between global exchanges.

“Generally speaking, I think trading on these [exchanges] can be challenging, particularly if your goal is to trade across multiple spot exchanges. It’s difficult to weave liquidity across exchanges and jurisdictions due to a number of factors,” noted Gorelick.

Some of the factors limiting the movement of funds between various exchanges pointed out by Gorelick include:

  • Technology
  • Concerns about deceptive trading
  • Lack of standard best practices
  • The fickle nature of banking relationships
  • Capital inefficiency
  • Security and transparency
  • The slow speed at which money and assets can move in and out

In the face of these issues found on cryptoasset exchanges, Gorelick hit on the large scale of the over-the-counter (OTC) markets.

Representatives from LedgerX and CME also provided updates on the state of the Bitcoin futures market later in the public hearing.

After gathering information from representatives of the cryptoasset industry and asking questions, the TAC voted unanimously to recommend that the CFTC create a new subcommittee focused on virtual currencies.


This article originally appeared on Bitcoin Magazine.

Posted on 15 February 2018 | 2:32 pm

Blockchain Startup Po.et Nabs Former Washington Post VP as Its New CEO

Blockchain Startup Po.et Nabs Former Washington Post VP as Its New CEO

Po.et, a blockchain startup that allows content creators to create time-stamped titles for their written, visual and audio work, has announced Jarrod Dicker, who has held positions at the Washington Post, Time Inc. and Huffington Post, as its new CEO.

It may be the perfect match. Po.et wants to change the way content creators manage their work and Dicker has a history of ushering traditional news outlets into the digital age, so they are not solely reliant on advertising and subscriptions.

Dicker left his position as VP of innovation and commercial strategy at the Washington Post to join Po.et.  

“At Po.et, we are constructing what this industry needs  —  a new environment where creators are paid for what they can do instead of what is required of them by an old and broken paradigm,” he wrote in a blog post announcing the move. He explained that he left his former position at the Post because “I believe in that future.”

Dicker’s role at Po.et will be to oversee strategy and engineering and product development on the Po.et platform. He will also oversee Frost, an API and set of development tools that Po.et launched last week for content creators and bloggers.

In a statement, Dicker said he plans to leverage his experience “across media, education and corporate America to elevate this platform as the standard for digital content ownership rights.”

After joining the Washington Post, Dicker helped form the RED team, which stands for research, experimentation and development. Prior to that he worked at RebelMouse, a company founded by the core Huffington Post technology team, where he helped build the company’s future content management system. He also worked at Time Inc., taking the lead on emerging products, and at Huffington Post, originating native advertising.  

“Jarrod’s unique vision enables him to drive creative, scalable products and evangelize innovation,” said Tyler Evans, board member of the Po.et Foundation in a statement. “We look forward to his enthusiasm for media and track record of building cutting-edge technology for publishers to Po.et.”

Po.et. provides tools to publishers and content creators who want to automate the licensing process without involving third parties. All content licensing terms are enforced by smart contracts. Contract details, as well as ownership rights and other descriptions are then hashed and cryptographically registered on the Bitcoin blockchain.

Po.et, which held a token sale on August 8, 2017, now boasts an online community of more than 40,000 developers and creators on social media platforms, such as Telegram, Reddit and Twitter.

In addition to his role as CEO at Po.et, Dicker sits on the board of advisors for Rutgers University Center for Innovation Education and MOGUL Inc., a technology platform that enables women to share ideas and access content based on their personal interests. Dicker also supports a Carnegie Mellon University program on the value of social advertising in publishing. 


This article originally appeared on Bitcoin Magazine.

Posted on 13 February 2018 | 10:34 am

Cryptocurrency Exchange’s $170 Million Nano Coin Loss Sparks Outrage

Cryptocurrency Exchange’s $170 Million Nano Coin Loss Sparks Outrage

On Friday, February 9, 2018, Italian cryptocurrency exchange BitGrail announced that “internal checks revealed unauthorized transactions which led to a 17 million Nano [XRB] shortfall, an amount forming part of the wallet managed by BitGrail.” The shortfall when reported was allegedly worth $170 million and has presumably rendered BitGrail insolvent, despite the fact that the other wallets and currencies that the exchange has were purportedly untouched.

The 9:30 p.m. UTC announcement by the Florence-based exchange gives some cause for circumspection. The founder of the exchange, Francesco “The Bomber” Firano, fired off salvos on Twitter in defense of the loss. His defense rang hollow for BitGrail customers, however, as Firano had noted the problem a day prior but withheld disclosure to authorities, users and the public while trying to work through the issue with the Nano team.

The “Hack”?

When news of the lost coins broke, BitGrail released a statement citing “unauthorized transactions” that were later confirmed by Firano to be the result of a hack. However, it appears many users have taken to Twitter to accuse Firano and BitGrail of committing fraud, with some positing that withdrawals have been severely limited on the exchange for months across multiple coins while transaction fees had increased. The coins lost represent approximately 14 percent of the total outstanding value of Nano mined.

However, there is some dispute (discussed below) on what actually caused the loss of coins. Whether it was an error in the BitGrail system, a planned exit scam or a hack from outsiders, taking or keeping the ill-gotten tokens seems ill-advised. The percentage of coins taken represents five times the current daily trading volume of Nano and would require careful offloading to avoid driving the price down by selling the coins.

Any scenario in which those lost coins could be dumped prior to the Nano coin gaining greater stability and trading volume forecasts a tumultuous time for the Nano team.

Nano Coin

The Nano coin, previously known as RaiBlocks, is a coin with a low level of liquidity that only trades on a few exchanges, (previously) including BitGrail. At the time of this writing, CoinMarketCap lists the volume for the coin at $34 million over the trailing 24 hours. The XRB coin has spiked as high as $31.14 on January 2, 2018, and currently sits at $9.75. Nano hosted its first Meetup on February 6, 2018, and launched its iOS wallet in beta on February 5, 2018.

BitGrail vs. Nano

Relations between the coin and the exchange disintegrated over the weekend with Firano accusing the Nano team of libel and threatening to call the police “for irresponsible behavior,” while Nano retaliated in a “tell all” Medium post. In a de-evolution of relations, Nano core team member Zack Shapiro (in a deleted tweet to user @jsmoove08) defended BitGrail a day prior to the exchange’s announcement.

nano twitter

The Nano team issued this announcement in response to the news. The team started with:

From our own preliminary investigation, no double spending was detected on the ledger and we have no reason to believe the loss was due to an issue in the Nano protocol. The problems appear to be related to BitGrail’s software. We had no knowledge of BitGrail’s insolvency prior to February 8th.

It concluded with this accusation:

We now have sufficient reason to believe that Firano has been misleading the Nano Core Team and the community regarding the solvency of the BitGrail exchange for a significant period of time.

Reactions from Firano were expectedly harsh, including one tweet where he stated:  

In the wake of the unfounded accusations made against me by the dev team and of the dissemination of private conversations that compromise police investigations, BitGrail s.r.l. is forced to contact the police in order to protect its rights and users.

It should be noted that the Nano team relayed through its Medium post that they would “not be responding to individual posts or accusations by Firano regarding this situation.”

As BitGrail was one of the few exchanges that had been accepting Nano, the coin is now facing trading volume declines, down from the $50 million reported by the Wall Street Journal on February 10, 2018.

Nano also linked a pdf of a private conversation between Firano and Nano core team members Shapiro and Colin LeMahieu. The chat shows Firano’s insistence that the loss of Nano was due to an issue with corrupted time/date stamps of the errant transactions and suggested the fault lay with Nano as non-Nano wallets remained intact. Shapiro and LeMahieu disputed this claim. Firano also asked if the stolen coins could be forked in order to recover the “stolen” Nano from the burned address. The dev team refused to acknowledge a fork as a possible solution.

Firano stated in the chat that he first noticed the bug eight hours prior to the conversation with Shapiro and LeMahieu. Shapiro challenged Firano’s timeline, asking, “If withdrawals have been closed for the last month, how did you not notice this? Someone with[sic] allegedly withdrawing for weeks according to you via this ‘hack.’”

Social Media Reacts

Users on social media seem to have sided with Nano on events, accepting the narrative that a bug in the javascript for the client-side interface allowed for wallets to withdrawal more coins than they had on the exchange. Others, though, were just as furious with the Nano dev team for supporting BitGrail in the weeks leading up to the loss of funds.

Regardless of fault, the turmoil caused by the loss of $170 million worth of Nano on the BitGrail exchange has left both the exchange and the dev team faced with accusations, angry customers and little recourse for those affected.

This article originally appeared on Bitcoin Magazine.

Posted on 13 February 2018 | 7:58 am

Space Decentral: Using Blockchain Tech to Democratize Space

Space Decentral: Using Blockchain Tech to Democratize Space

Renowned scientist Stephen Hawking recently called for a concerted effort to launch humans into space saying:

To leave Earth demands a concerted global approach, everyone should join in. We need to rekindle the excitement of the early days of space travel in the ‘60s.”

While NASA and Tesla are already well established in the game, Space Decentral, founded by international Space Cooperative, is staking its claim in outer space and all that’s in it. Using the latest blockchain technology to launch a social network, they’re on a mission to democratize space by crowdsourcing information and crowdfunding citizen-powered space travel.

As interest in space travel grows worldwide, an international group of scientists, engineers, architects, futurists, artists and software developers including former and current NASA employees is working collaboratively to share the latest scientific research and help crowdfund projects that lack government funding.

According to Space Decentral advisor Dr. Paolo Tasca, Executive Director of the Centre for Blockchain Technologies at University College London (UCL):

“It's a global space research lab where individuals and organizations can contribute knowledge and pool intellectual property in an open manner and where revenue can be fairly shared among contributors."

"This is a massive project that will require the presence of hundreds of scientists, engineers and innovators,” he adds.

Space Decentral hopes to leverage some of the current development work under way in the Ethereum community to produce an open-source toolbox to collaboratively design space missions.

"Space technology and Earth technology go hand in hand we need to utilize systems thinking to solve problems in parallel,” said Yalda Mousavinia, Space Decentral co-founder, referring to blockchain technology and distributed engineering.

Faster Than Light: A Utility Coin?

Offering their Faster Than Light coin (FTLcoin), Space Decentral is planning an ICO to raise at least $10 million with a maximum goal of $35 million, as soon as the membership has approved its final white paper (due at the end of February 2018).

In an interview with Bitcoin Magazine, Mousavinia acknowledges that this first ICO will only fund the initial setup and there will need to be subsequent ICOs as projects are approved. She notes:

“The goal is to fund the technological infrastructure, such as decentralized collaboration tools and smart contracts that will make the process for operating a space DAO more efficient.”

They hope to sell internationally and within the U.S., where they will write the SEC to ask that their FTLcoin be considered a utility coin and not a security.

“We are in the process of writing a letter to the SEC that makes our case for why we believe it is a utility token. What we are really trying to do here is create a community where people want to purchase the token to actually have a voice on humanity's future in space this isn't a pump-and-dump ICO,” says Mousavinia.

Building an Aragon DApp

Space Decentral’s governance and operations will be mediated by smart contracts, using Aragon, an organization that builds DApps on the Ethereum blockchain to help new startups securely manage their organization and governance.

“We’re building our organization on top of Aragon’s governance and decision-making infrastructure. Aragon's refactored DApp goes live on testnet this month and it’ll be rigorously tested,” says Mousavinia.

“We are looking into using Giveth's minime smart contract for the token sale. This smart contract has been used by both Aragon and Status and has had several security audits. Additionally, we are thinking about using the Gnosis multisig as the initial wallet.”

Evolving Into a DAO

The founding team is currently managing and directing Space Decentral, but their goal is to be replaced by a decentralized voting process and regular community meetings of all their members.

“We envision Space Decentral as a vehicle for humanity’s interest in space exploration, and recognize that it must be fully autonomous in order for it to truly serve that purpose,” Mousavinia said.

Mousavinia recognizes that the transition will be challenging as the team has so far set priorities and has already developed proposed space missions like Martian Spring and Lunar Odyssey.

The goal is to connect multiple organizations while making it easy and transparent for individuals to collaborate without any organizational affiliation and incentivize involvement by rewarding contributors adequately and giving them a voice. 

Space Decentral is laying out a roadmap to give potential investors assurances that the team is in it for the long haul.

Mousavinia explained:

“We plan on creating milestone-based smart contracts, such that there will be separate tranches of funding that are activated once different aspects of the technical roadmap or community development is accomplished. These full details are still being worked out and will be described more in the full white paper.

She added that the team is determining a timeline which will give the DAO ultimate approval on the yearly budget. “A mutual understanding will be developed on the best way to monitor funds that provides transparency in addition to room for experimentation as needed.”

"We all need to take the long view and work together to create the system that sustainably makes humans a true spacefaring species,” said Space Decentral co-founder and former NASA engineer, Dr. Marc M. Cohen, a member of the core team that is designing the DAO.

“We may not complete the effort in our lifetime, but we have an obligation to humanity to begin.” 


This article originally appeared on Bitcoin Magazine.

Posted on 13 February 2018 | 7:53 am

Bitcoin tops $10,000 milestone

Posted on 29 November 2017 | 2:30 am

Bitcoin price climbs over $4,000

Posted on 14 August 2017 | 1:16 am

CRYENGINE now accepts Bitcoin

Posted on 29 March 2017 | 1:24 am

Consulting firm EY Switzerland accepts Bitcoin

Posted on 26 November 2016 | 12:47 am

Steam accepts Bitcoin

Posted on 29 April 2016 | 1:09 am

Microsoft accepts Bitcoin

Posted on 11 December 2014 | 5:06 am

PayPal and Virtual Currency

Posted on 23 September 2014 | 9:52 pm

Wikimedia Foundation Now Accepts Bitcoin

Posted on 30 July 2014 | 3:14 pm

airBaltic - World’s First Airline To Accept Bitcoin

Posted on 22 July 2014 | 11:03 am

February 19, 2018 -
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