Connect with us

Blockchain

We Totally Misunderstood Blockchain

Avatar

Published

on

We Totally Misunderstood Blockchain

The fad is dying. A recent CB Insights report that was cited by Bloomberg announced a 60% decline in blockchain startup investments this year, down to $1.6 billion. But at the same time, large enterprises such as Microsoft, Walmart, IBM and Samsung have either deployed their own blockchains or joined partnerships to use the technology. Ironically, several banks, such as HSBC and JPMorgan Chase, have also developed their own blockchain arms — the same entities blockchain was supposed to replace. What happened? Why are public chains with the true spirit of decentralization fading away while early adversaries have turned into advocates of the technology?

Slow to adopt — but finally adopting

Governments and politicians were regularly called out for their failing to comprehend blockchain technology. Many initially ignored the crypto boom, which led to the scam-filled craze over initial coin offerings in 2017. Then, they started opposing, regulating and shutting down blockchain projects, which hurt the developing industry. But as time has passed, they are slowly embracing the technology in the right way.

One notable example is China, which had initially banned blockchain projects altogether. In late October 2019, President Xi Jinping took a U-turn by requiring China to make a “greater effort” toward blockchain development in order to gain an “edge over other major countries.” While cryptocurrencies were still banned, this showed that the tides were turning in favor of the still-nascent technology.

Public vs. private

It’s worth noting that enterprises have their own versions of the blockchain: “private” or “enterprise” blockchains. These differ on several fronts from traditional, “public” blockchains.

Contrary to public blockchains such as Bitcoin or Ethereum, not just anyone can join a private blockchain. Each node is specifically selected by the enterprise, which might require Know Your Customer procedures in some cases.

For the same reason, “trust” is established much easier. As the nodes are already identified, there is a much lower risk of bad actors trying to corrupt the chain. Even if they try, they cannot do it anonymously.

This leads to scalability. Since fewer nodes are involved and a different consensus mechanism can be used, the transactions become much faster. Hyperledger can run up to 20,000 transactions per second, whereas Ethereum runs 15.

In private blockchains, there is no need for “rewards.” Typical blockchain projects must pay the nodes for the work they do and the energy they consume. There is no point in doing this in a private chain, as the motivation behind the project is different.

Similarly, private chains are easier to update. Public chains require consensus from a majority of the participating nodes — and if there is a disagreement, it can lead to a split, where a new blockchain is born. There are no such requirements in enterprise chains, which means the code can be updated much easier and faster.

For these reasons, it is much easier to launch a private chain. “In the near term, more projects will probably use private to learn the onboarding process and use that first, adopting public blockchains where appropriate or required,” said Nate D’Amico, the chief technology officer of the Nem Foundation, a provider of blockchain technology capable of taking the form of both a public chain and a private solution.

But public chains are favorable for different reasons: for when you need to connect individuals who have no information about each other but still need to collaborate and transact. That was why Bitcoin (BTC) was born — to enable peer-to-peer transactions without middlemen. This begs the question: Do we need enterprise blockchains at all? When we discard the primary characteristics of blockchain, why can’t we just use a distributed database?

The real use of blockchain

It turns out there are some actual advantages in using blockchain technology, even for enterprises. Among them are commercial concerns. Enterprises strictly control the nodes that join their network, but that does not mean they dictate how the system operates. Where several competitors need to collaborate, blockchain offers the ideal medium to cooperate in a trustless environment without giving too much power to one party. This may sometimes even be a political concern, such as when there is no central location to host the database that would be acceptable to all parties. Decentralization also prevents one side from overcharging for their middleman services.

Finally, there are security concerns. Blockchain comes with built-in redundancy, encryption, synchronization and tamper resistance. “Blockchain architecture is fundamentally designed differently in that openness, collaboration, and data interactions among many parties actually make the database technology more secure and reliable,” D’Amico said. Thus, blockchain offers one of the best methods to preserve data.

But this benefit also has certain drawbacks. “A grey area for both private and public ledger/blockchain adoption are regulations like GDPR and organizations that choose to persist Personally Identifiable Information and other related data on-chain,” D’Amico explained. “Depending on how the network is run, such as globally distributed network, you don’t control where copies of the data reside, and you don’t have any recourse to ‘the right to be forgotten’ as data is inherently immutable and cannot be removed from history.”

The middlemen are here to stay

Contrary to popular belief, it seems that blockchain is not going to replace central authorities. Rather, the trend suggests that semi-centralized, government-regulated versions will have the highest chance of survival. Startups are learning the hard way that they need to comply with governmental regulations — not because they are submitting to a higher authority, but simply because of public interest. At the end of the day, blockchain requires you to trust codes and algorithms over human counterparts, and some are not ready to do so. Trusting codes and algorithms may work great for simple cases, but edge cases need oracles and human authorities to dispute.

Still, blockchain’s ability to offer an immutable and tamper-proof ledger can help to prevent the authorities from misusing their power. Just like most other technologies, finding a human–computer balance is the best use of blockchain.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Paul McNeil is a tech analyst specializing in the political and moral perspectives of today’s innovative world. His articles have appeared on various websites, including the Huffington Post. Currently, he is focused on building the Post’s flagship product under his stealth-mode startup, Blue AI.

Published at Sat, 21 Dec 2019 10:52:00 +0000

Continue Reading

Blockchain

BitMEX Executives to Face Trial in March 2022

BitMEX’s former executives Arthur Hayes, Benjamin Delo, and Samuel Reed will face trial in March 28th, 2022.

Avatar

Published

on

The executives of the derivatives trading platform – BitMEX – will face trial in March next year. The money laundering case will come 18 months after charges were first filed. The former members of BitMEX can face up to 5 years in prison and a $250,000 fine if found guilty.

The Trio Heads to Trial

Last year, US officials accused the CEO of the company Arthur Hayes, the co-founder Benjamin Delo, and the chief technology officer Samuel Reed of violating the Bank Secrecy Act. Moreover, the members of BitMEX were served with money-laundering charges.

On May 11th – 18 months after the first accusations against them – New York District Judge John Koeltl set the trial date for March 28th, 2022. Furthermore, Gregory Dwyer – BitMEX’s head of business development – also faces charges but will appear in court separately.

Even though the company’s headquarters are in the Seychelles, the US Department of Justice accused BitMEX of failing to apply anti-money laundering procedures while doing business with US-based customers.

Interestingly enough, the ex-CEO of BitMEX – Arthur Hayes – said that the exotic island was a more convenient place for business as it was much easier to bribe Seychelles’ authorities rather than the US ones. The former executives of the cryptocurrency exchange could face a maximum of five years in prison and a $250,000 fine.


ADVERTISEMENT

Where Was Arthur Hayes?

Attorney Jessica Greenwood told the court that Hayes has ”discussed a surrender date of April 6th, 2021 in Hawaii.” She added that ”the plan is to notify the Court in advance of that appearance and discuss logistics” around his submission.

As CryptoPotato reported, even after his remote announcement Hayes continued to reside abroad and explained that he would only visit the United States whenever has to face the trial in New York.

In the end, the former BitMEX CEO indeed turned himself in on April 6th, 2021. However, the officials released him on a $10 million bond pending the future court process.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/bitmex-executives-to-face-trial-in-march-2022/

Continue Reading

Blockchain

dotmoovs Raises $840,000 From Strategic Investors and Partners

[Press Release – Tallinn, Estonia, 12th May, 2021] dotmoovs, an NFT platform powered by advanced computer vision algorithms has successfully completed a private funding round of $840,000 from notable investors. Amongst the investors are Moonrock Capital, Morningstar Ventures, Spark Digital Capital, Ascensive Assets, Rarestone, Building Blocks, MarketAcross, AU21 and GBV Capital. The sports industry needs […]

Avatar

Published

on

[Press Release – Tallinn, Estonia, 12th May, 2021]

dotmoovs, an NFT platform powered by advanced computer vision algorithms has successfully completed a private funding round of $840,000 from notable investors. Amongst the investors are Moonrock Capital, Morningstar Ventures, Spark Digital Capital, Ascensive Assets, Rarestone, Building Blocks, MarketAcross, AU21 and GBV Capital.

The sports industry needs a solution for giving everyone a real chance to earn from their skills. dotmoovs is designed to bridge the gap between physical and geographic limitations, assessment of skill and finally – monetisation. Our vision is to build a powerful sports platform where everyone can challenge their friends or any other similar skilled players in the World for a challenge in their favourite sport.

“We are proud to have such notable investors joining us in building the first crypto mobile worldwide sports competitive environment. We know they can boost our growth and provide industry specific insight and knowledge which will be a deciding factor for us” said Ricardo Martins Costa, head of growth of dotmoovs.

“Our vision is a robust platform powered by blockchain and a state-of-the-art AI system that can analyse videos of players performing sports challenges in real-time” Ricardo adds.

“Moonrock Capital and Morningstar Ventures have come together to assist in incubating and bringing the dotmoovs project together. We are grateful and honored by the trust shown by dotmoovs’ team to become their official incubators and lead investors. Working closely with the team for some time now, we are highly impressed with their professionalism, expertise, and what they’ve developed so far. We are very excited to see this ambitious and revolutionary project come to life – combining sports, blockchain, and NFTs with dotmoovs’ vision of growth. The level of their supporting technology is not something we see every day. For these reasons, we are thrilled to be a part of dotmoovs’ journey and helping them achieve their vision.” said Simon Dedic, Managing Partner Moonrock Capital, and Danilo Carlucci, CIO Morningstar Ventures.

About dotmoovs

dotmoovs is the first crypto mobile worldwide competitive environment. The platforms allow users to compete with others around the world just by bringing their skills, ambition, and smartphone. dotmoov’s AI-based video referee will assess their performance in real-time. Powered by blockchain technology, sport competition will enable fair challenges and access to unique digital assets.

Website | Twitter | Telegram | Telegram Announcements

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/dotmoovs-raises-840000-from-strategic-investors-and-partners/

Continue Reading

Blockchain

Bitcoin Can Be a ‘Highly Speculative’ Instrument According to the SEC

The US SEC has warned mutual fund investors to be utterly cautious when dealing with Bitcoin as the asset could present high risks.

Avatar

Published

on

The United States Securities and Exchange Commission (SEC) alerted mutual fund investors about the risks in the Bitcoin futures market. The US agency even described the cryptocurrency as a ”highly speculative” asset.

Don’t Ignore the Risks

The price of the primary cryptocurrency skyrocketed during 2020 and continued its rally in the first months of 2021 reaching an ATH of around $65,000 in mid-April.

Consequently, many individuals and mutual fund investors took the opportunity to jump on the Bitcoin bandwagon and allocate their capital to it. However, the US SEC warned market participants to be especially careful when doing so.

The US watchdog advised that even though the digital asset has become very popular and tempting for investors, it still hides its risks as it is volatile and traded in a poorly regulated market. SEC went further calling Bitcoin a ”highly speculative” instrument.

The agency reminded of its primary mission to protect investors and enable fair and efficient markets. It also alarmed that every individual willing to trade with the cryptocurrency ought to investigate thoroughly the matter and keep in mind its risky nature:


ADVERTISEMENT

”Protecting investors and assessing the regulatory compliance of these funds is a top priority for staff.”

Additionally, the SEC plans to explore whether the crypto industry is capable of supporting ETFs. In the course of the process, agency officials intend to examine the valuation of assets by funds, analyze the liquidity of the cryptocurrency market, and determine the efficiency of risk management.

Who Else Sounds the Alarm?

The Securities and Exchange Commission is not the only regulator to warn investors of the potential hazards connected to Bitcoin trading.

The UK Financial Conduct Authority was among the first to do so earlier this year. According to the British institution, many of these companies lack regulation and promise high returns. FCA further stated that people dealing with such organizations should be prepared for worst-case scenarios, including losing all of their money.

On the other side of the globe, the New Zealand financial regulator – the FMA – shared a very similar warning. The agency advised investors of the dangers that Bitcoin trading hides and same as the FCA told people that they can lose all their money.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/bitcoin-can-be-a-highly-speculative-instrument-according-to-the-sec/

Continue Reading

Blockchain

Canceling a Tesla Order and More: Crypto Community Responds to Elon Musk’s Announcement

After Elon Musk and Tesla shocked the (crypto) world, the community reacts. Tesla lost at least one customer and prominent names showing their disagreement.

Avatar

Published

on

The shocking announcement made by Tesla and its CEO Elon Musk took the cryptocurrency space by storm. The company’s decision to remove BTC as a payment option for its vehicles and services brought prices down and attracted the world’s attention.

Somewhat expectedly, the ever-vocal crypto community was quick to respond, from people canceling their Tesla vehicle orders to others breaching bitcoin’s clean energy mining.

What Happened?

Before heading to the community’s comments, let’s briefly review Musk’s history with bitcoin. It’s has been a rather controversial one, and the past 24 hours only reaffirmed this.

The billionaire used to question BTC’s merits before suddenly changing his tune in early 2021 and regretting not buying any portions years ago. Shortly after, one of the companies he runs, Tesla, bought $1.5 billion in bitcoin – the purchase was in January 2021.

Musk was significantly more positive on the primary cryptocurrency and even defended the move in a Twitter debate against Peter Schiff.


ADVERTISEMENT

In the following weeks, Tesla added BTC as a payment method for its electric vehicles and said it would retain the funds in bitcoin instead of converting them into cash.

The relationship between Musk and bitcoin was never better, but then Tesla said it had sold a small portion of its initial investment. The company’s CEO argued that the decision was just to test BTC’s liquidity – a test that the cryptocurrency passed.

Hours ago, Musk made another somewhat controversial announcement saying that Tesla has halted bitcoin payments and cited the asset’s high energy consumption as the reason.

The consequences were immediate as prices fell hard. Bitcoin lost more than $12,000 in a day to a two-month low.

The Crypto Community Reacts

Being one of the most influential people in the modern era and the leader of one of the largest companies, Musk’s announcement caught the attention of pretty much everyone. Aside from traditional media rushing to cover the shockwaves, the crypto community took numerous swings at the billionaire.

Michael Saylor, the CEO of MicroStrategy, who is among the most well-known BTC proponents and may have something to do with Tesla’s initial decision to buy bitcoin, was among the first to respond.

“Ironic because no incremental energy is used in a bitcoin transaction. The energy is used to secure the crypto-asset network, and the net impact on fossil fuel consumption over time will be negative, all things considered.” – he wrote.

Anthony Pompliano noted that “this energy story has been debunked over and over again” and added that “75% of miners use renewable energy.” A recent VanEck report actually supported Pomp’s assertion.

Binance’s CEO, Changpeng Zhao, commented: “Elon probably did not research how much energy is required to run other (non-crypto) currencies that Tesla accepts.”

Galaxy Digital’s CEO, Mike Novogratz, opined that Musk’s actions could actually be favorable for bitcoin in the long run as he “is using his considerable influence to push BTC mining towards a greener future.”

Canceling a Tesla Order

The Twitter storm didn’t stop with the executives. Prominent on-chain analyst Willy Woo breached a recent social media conversation between Jack Dorsey and Elon Musk. In it, Tesla’s CEO agreed with a post by Square’s CEO indicating that “bitcoin incentivizes renewable energy.” That was about three weeks before Musk and Tesla halted BTC payments.

Saifedean Ammous, the author of the Bitcoin Standard book, was a bit more critical of Musk, as the following tweet shows:

Another compelling comment came from the popular YouTuber Chris Dunn. He revealed plans and later displayed screenshots of canceling a Tesla Cybertruck order. What made the cancellation even more intriguing was the feedback he left for the company:

“Elon said Tesla will no longer accept bitcoin as payment because it “comes at great cost to the environment.” This is incorrect and disingenuous. I cannot support someone who pumps altcoins to uninformed people on TV, then claims bitcoin is the problem. I hope Elon and Tesla rethink their stance on bitcoin. Until then, please cancel my cybertruck order.”

Following Musk’s announcement, one of the leading cryptocurrency reward companies, Lolli, said they will discontinue giving paybacks for Tesla purchases.

Featured Image Courtesy of Independent

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/canceling-a-tesla-order-and-more-crypto-community-responds-to-elon-musks-announcement/

Continue Reading
ACN Newswire20 seconds ago

CITIC Telecom CPC wins Accolade in AI Challenge Competition

SaaS3 mins ago

SaaS3 mins ago

SaaS3 mins ago

SaaS4 mins ago

SaaS4 mins ago

Aviation14 mins ago

CMA CGM Air Cargo announces three new destinations

Aviation14 mins ago

CMA CGM Air Cargo announces three new destinations

Aerospace16 mins ago

Boeing wins £1.4bn MoD contract for 14 Chinook helicopters

Aviation20 mins ago

airBaltic announces flights to Corfu

Aviation20 mins ago

airBaltic announces flights to Corfu

Blockchain26 mins ago

BitMEX Executives to Face Trial in March 2022

Blockchain26 mins ago

dotmoovs Raises $840,000 From Strategic Investors and Partners

Blockchain27 mins ago

Bitcoin Can Be a ‘Highly Speculative’ Instrument According to the SEC

Cleantech28 mins ago

Houston Area Tesla Crash: NTSB Preliminary Report Confirms Tesla’s Statements, Raises Questions About Local Investigation

Cleantech28 mins ago

Houston Area Tesla Crash: NTSB Preliminary Report Confirms Tesla’s Statements, Raises Questions About Local Investigation

Blockchain28 mins ago

Canceling a Tesla Order and More: Crypto Community Responds to Elon Musk’s Announcement

Aviation32 mins ago

Russian Prime Minister Mikhail Mishustin: Russia will start mass production of the Irkut MC-21

Aviation32 mins ago

Russian Prime Minister Mikhail Mishustin: Russia will start mass production of the Irkut MC-21

PR Newswire33 mins ago

Plastic Omnium geht Partnerschaft mit Hopium zur Entwicklung des Māchina-Wasserstoffspeichersystems ein

PR Newswire33 mins ago

Braxia Scientific Opens First Ketamine Therapy Clinic in Quebec; Enters Joint Venture with Neurotherapy Montreal, A Leading Brain Injury Solutions Clinic for Adults and Children

PR Newswire35 mins ago

Life Sciences Companies Speed Clinical Trial Management with Veeva Vault CTMS

PR Newswire35 mins ago

PostNet centers help customers celebrate with signs

PR Newswire35 mins ago

Four Seasons Plumbing celebrates National Pet Month

Nano Technology38 mins ago

Polarization-sensitive photodetection using 2D/3D perovskite heterostructure crystal

Nano Technology39 mins ago

With a zap of light, system switches objects’ colors and patterns: “Programmable matter” technique could enable product designers to churn out prototypes with ease

AR/VR39 mins ago

Intel Researchers Give ‘GTA V’ Photorealistic Graphics, Similar Techniques Could Do the Same for VR

Nano Technology39 mins ago

Graphene key for novel hardware security

Nano Technology40 mins ago

180 Degree Capital Corp. Reports +14.2% Growth in Q1 2021, $10.60 Net Asset Value Per Share as of March 31, 2021, and Developments From Q2 2021

Nano Technology40 mins ago

Tiny, Wireless, Injectable Chips Use Ultrasound to Monitor Body Processes

Trending