Few new technologies have raised as much discussion as blockchain. One reason is the controversy, concern, and perceived opportunity around blockchain-based cryptocurrencies (such as bitcoin and ether) and crowdfunding via initial coin offerings (ICOs). But what is blockchain’s role in the enterprise?
This article gives some ideas to think about. Take those trends with grain of salt. There will be a crash ans bubble burst on blockchains in few years.
782 Comments
Tomi Engdahl says:
Hackers Breach Cryptocurrency Platform Atlas Quantum
https://www.securityweek.com/hackers-breach-cryptocurrency-platform-atlas-quantum
260,000 Impacted in Cryptocurrency Investment Platform Breach
The information of over 260,000 users was stolen after hackers managed to compromise the cryptocurrency investment platform Atlas Quantum.
The company says it has over 240,000 users in more than 50 countries and over $30 million in assets under its management. In 2017, the platform delivered a cumulative 38% return to investors, Atlas claims.
Tomi Engdahl says:
https://www.wired.com/story/coinbase-physical-vault-to-secure-a-virtual-currency/
Tomi Engdahl says:
Civil, the blockchain journalism startup, has partnered with one of the oldest names in media
https://techcrunch.com/2018/08/28/civil-the-blockchain-journalism-startup-has-partnered-with-one-of-the-oldest-names-in-media/?sr_share=facebook&utm_source=tcfbpage
Civil, the two-year-old crypto startup that wants to save the journalism industry by leveraging the blockchain and cryptoeconomics, has partnered with the 172-year-old Associated Press to help the wire service stop bad actors from stealing its content.
Civil, using its blockchain-enabled licensing mechanism, which is still in development, will help the AP track where its content is going and whether it’s licensed correctly.
plans to make the licensing tool available to all the newsrooms in its ecosystem once it’s up and running.
“We have a problem now of not even just dealing with literal fake news, but dealing with the social aspects of people not really knowing what to trust anymore because people are throwing around allegations,” Iles told TechCrunch. “We think [Civil] is going to create far better signals for consumers to really know if a news organization is trusting and credible, despite whatever powerful people might be saying.”
If all goes well, the AP will rake in more revenue as a result of the partnership and Civil will have a nice use case of its blockchain-enabled licensing tool to show off.
Tomi Engdahl says:
Create Your Own Blockchain IoT Devices with the Elkrem Development Board
https://blog.hackster.io/create-your-own-blockchain-iot-devices-with-the-elkrem-development-board-cf9632d3ba3e
According to our friends at Elkrem, the team has been developing a hardware platform that would let engineers and makers build Ethereum and other cryptocurrency-connected IoT devices without a need to have extensive knowledge on how blockchains work
Tomi Engdahl says:
https://www.tekniikkatalous.fi/tekniikka/ict/73-1-twh-vuodessa-bitcoin-louhinta-kuluttaa-valtavasti-sahkoa-6738247
The Outline kertoo, että tällä hetkellä bitcoinien louhinta vaatii noin viisi gigawattia sähköä per päivä. Sähköntarve on arviolta prosentin verran koko maailman sähköntuotannosta.
Jotta luku olisi helpommassa perspektiivissä, bitcoinien louhintaan menee Digiconomistin mukaan vuositasolla 73,1 terawattituntia. Tilastokeskuksen mukaan koko Suomen energiantarve oli vuonna 2017 noin 85,5 terawattituntia.
BITCOIN MINING NOW ACCOUNTS FOR ALMOST ONE PERCENT OF THE WORLD’S ENERGY CONSUMPTION
https://theoutline.com/post/6047/bitcoin-mining-accounts-for-almost-one-percent-of-the-worlds-energy-consumption?zd=2&zi=5sfxeik2
SIDE NOTE
AUG—25—2018 04:13PM EST
BITCOIN MINING NOW ACCOUNTS FOR ALMOST ONE PERCENT OF THE WORLD’S ENERGY CONSUMPTION
Shutterstock.com
THAT’S MORE ELECTRICITY THAN IT TAKES TO POWER OHIO OR NEW YORK STATE.
DREW MILLARD
It is well-established established that Bitcoin mining — aka, donating one’s computing power to keep a cryptocurrency network up and running in exchange for a chance to win some free crypto — uses a lot of electricity. Companies involved in large-scale mining operations know that this is a problem, and they’ve tried to employ various solutions for making the process more energy efficient.
But, according to testimony provided by Princeton computer scientist Arvind Narayanan to the Senate Committee on Energy and Natural Resources, no matter what you do to make cryptocurrency mining harware greener, it’s a drop in the bucket compared to the overall network’s flabbergasting energy consumption. Instead, Narayanan told the committee, the only thing that really determines how much energy Bitcoin uses is its price. “If the price of a cryptocurrency goes up, more energy will be used in mining it; if it goes down, less energy will be used,” he told the committee. “Little else matters. In particular, the increasing energy efficiency of mining hardware has essentially no impact on energy consumption.”
In his testimony, Narayanan estimates that Bitcoin mining now uses about five gigawatts of electricity per day (in May, estimates of Bitcoin power consumption were about half of that). He adds that when you’ve got a computer racing with all its might to earn a free Bitcoin, it’s going to be running hot as hell, which means you’re probably using even more electricity to keep the computer cool so it doesn’t die and/or burn down your entire mining center, which probably makes the overall cost associated with mining even higher.
Tomi Engdahl says:
Brian Ellsworth / Reuters:
A week after pegging its money, pensions, and salaries to Petro cryptocurrency, Venezuela still fails to show proof that anyone is using Petro for transactions
Special Report: In Venezuela, new cryptocurrency is nowhere to be found
https://www.reuters.com/article/us-cryptocurrency-venezuela-specialrepor/special-report-in-venezuela-new-cryptocurrency-is-nowhere-to-be-found-idUSKCN1LF15U
To hear Venezuela’s leftist President Nicolas Maduro tell it, this remote hamlet of 1,300 souls is perched on the cutting edge of an innovation in cryptocurrency.
Venezuela has pledged those reserves as backing for a digital currency dubbed the “petro,” which Maduro launched in February. This month he vowed it would be the cornerstone of a recovery plan for the crisis-stricken nation.
It turns out that Venezuela’s petro is hard to spot almost anywhere
The hunt turned up little evidence of a thriving petro trade. The coin is not sold on any major cryptocurrency exchange. No shops are known to accept it.
The few buyers Reuters could locate were those who had posted about their experiences on online cryptocurrency forums. None would identify themselves. One complained of being “scammed.”
Senior government officials have given contradictory statements. Maduro says petro sales have already raised $3.3 billion and that the coin is being used to pay for imports. But Hugbel Roa, a cabinet minister involved in the project, told Reuters on Friday that the technology behind the coin is still in development and that “nobody has been able to make use of the petro … nor have any resources been received.”
Tomi Engdahl says:
Thailand is becoming a critical country for blockchain
https://techcrunch.com/2018/08/31/thailand-blockchain/?sr_share=facebook&utm_source=tcfbpage
While United States regulators are still trying to figure out how to think about cryptocurrencies, Thailand’s government is already mapping out its own central bank digital currency.
This is just one of numerous examples how Thailand has emerged as one the most interesting cryptocurrency and blockchain countries in Southeast Asia in 2018.
Since the start of the year, the Thai government has become increasingly outspoken and welcoming of cryptocurrency projects and exchanges. In just a few months, Thai regulators have made notable progress, from setting up cryptocurrency company licenses to permitting exchanges and ICOs. More importantly, the country has attracted foreign companies by providing clear and explicit guidelines for foreign blockchain companies to operate.
Tomi Engdahl says:
Google Cloud Blog:
Ethereum’s blockchain made publicly available on Google BigQuery, after Bitcoin’s was added in February; it includes ETH transfers, transaction costs by day — Ethereum and other cryptocurrencies have captured the imagination of technologists, financiers, and economists.
Ethereum in BigQuery: a Public Dataset for smart contract analytics
https://cloud.google.com/blog/products/data-analytics/ethereum-bigquery-public-dataset-smart-contract-analytics
Ethereum and other cryptocurrencies have captured the imagination of technologists, financiers, and economists. Digital currencies are only one application of the underlying blockchain technology. Earlier this year, we made the Bitcoin dataset publicly available for analysis in Google BigQuery. Today we’re making the Ethereum dataset available.
Like its predecessor, Bitcoin, you might think of the Ethereum blockchain as an immutable distributed ledger. However, creator Vitalik Buterin extended its set of capabilities by including a virtual machine that can execute arbitrary code stored on the blockchain as smart contracts.
With regards to the system architecture, Ethereum resembles Bitcoin in that it primarily serves to record immutable transactions. Both are essentially OLTP databases, and provide little in the way of OLAP (analytics) functionality. However, the Ethereum dataset is notably distinct from the Bitcoin dataset
Why make Ethereum blockchain data available on Google Cloud?
While the Ethereum blockchain peer-to-peer software has an API for a subset of commonly used random-access functions (for example: checking transaction status, looking up wallet-transaction associations, and checking wallet balances, for example), API endpoints don’t exist for easy access to all of the data stored on-chain.
Perhaps more importantly, API endpoints also don’t exist for viewing the blockchain data in aggregate. Here’s an example chart that shows the total Ether transferred and average transaction cost, aggregated by day:
A visualization like this (and the underpinning database query) is useful for making business decisions, such as prioritizing improvements to the Ethereum architecture itself (is the system running close to capacity and due for an upgrade?) to balance sheet adjustments (how quickly can a wallet be rebalanced?).
Tomi Engdahl says:
David Canellis / The Next Web:
Seattle-based exchange Bittrex delists Bitcoin Gold, as the fallout continues from a 51% attack on the cryptocurrency in May that netted attackers millions — The threat of attack is very real for upstart cryptocurrency projects. Bitcoin Gold, a popular hard fork of Bitcoin …
Major cryptocurrency exchange delists Bitcoin Gold following $18M hack
https://thenextweb.com/cryptocurrency/2018/09/03/bittrex-delists-bitcoin-gold/
The threat of attack is very real for upstart cryptocurrency projects. Bitcoin Gold, a popular hard fork of Bitcoin, is set to be delisted from cryptocurrency exchange Bittrex.
The reason for the removal is that the currency has suffered a series of debilitating heists that netted thieves over $20 million in stolen funds.
Back in May, Bitcoin Gold was hijacked with rented computing power. After hackers took control of more than 51 percent of the overall hash power, more than 388,000 BTG (approx. $18 million at the time) was stolen from cryptocurrency exchanges like Bittrex. Hackers were able to use “double-spending,” a method of repeatedly tricking an exchange into transferring more coins than it should.
It is uncertain just how much was taken directly from Bittrex, but Bitcoin Gold maintains that compensation of over 12,000 BTG ($265,000) was requested.
Tomi Engdahl says:
Japan is experimenting with a blockchain-powered voting system
https://thenextweb.com/hardfork/2018/09/03/japan-city-blockchain-voting/
Japan is the latest country to consider using blockchain for voting. Tsukuba is set to become the country’s first city to trial blockchain-powered digital voting.
The system will rely on the Japanese equivalent of social security cards to verify voter identity. Currently, the solution is being used to allow citizens to cast votes on “social contribution projects,” the Japan Times reports.
The system does not sound too dissimilar to conventional voting. However, rather than placing a mark against a relevant response for a vote and placing the ballot card in a secure box, voters will place their votes on a screen.
The system will use blockchain tech to prevent falsifying any of the data recorded, according to the Japan Times.
After placing a vote using the system, Tsukuba Mayor Tatsuo Igarashi said he “had thought it would involve more complicated procedures, but I found that it’s minimal and easy.”
Despite this, the rollout has not been as smooth as city officials had perhaps hoped.
The Japan Times stated that a number of voters forgot their passwords, as such they would have been unable to cast a vote. Furthermore, it was apparently difficult to also tell whether or not a vote had indeed been counted. Not that that’s crucial in this scenario…
It remains unclear if there are any additional safeguards against voter fraud, in Tsukuba’s trial of the tech. As the voter simply holds up a social security card to the screen before voting, there is no knowing if the voter is required to provide evidence that they are in fact using their own card.
Tomi Engdahl says:
How Cybercriminals Are Using Blockchain to Their Advantage
https://www.securityweek.com/how-cybercriminals-are-using-blockchain-their-advantage
Cybercriminals Have Been Experimenting With a Blockchain Domain Name System (DNS)
The takedowns of AlphaBay and Hansa in 2017 by law enforcement gave rise to much speculation about the future of dark web marketplaces. As I’ve discussed before, an environment of fear and mistrust are driving the cybercriminal community to incorporate alternative technologies to improve security and remain below the radar as they conduct illicit business online. One such technology is blockchain.
When most people hear the term “blockchain” they typically think of cryptocurrencies and other applications where transactions and interactions among a community of users must be executed with a high degree of trust, efficiency and transparency. However, if we consider the recent challenges that administrators of online criminal forums have encountered, it only makes sense that they would explore applications for blockchain. To that end, some have been experimenting with a blockchain domain name system (DNS) as a way of hiding their malicious activity and bullet-proofing their offerings.
A blockchain DNS is different from a traditional DNS. Typically, when we type a website into an Internet browser, a computer will query a DNS server for an IP address. Essentially, this is the Internet equivalent of a phone book.
Decentralized DNS offers many benefits such as countering censorship by authorities (for example if a government orders all Internet Service Providers in a country to stop redirecting domains to a relevant IP address), or preventing DNS spoofing, where attackers can insert corrupt DNS data so that the name server returns an incorrect IP address and redirects traffic to an attacker computer. However, decentralized DNS can also be abused by attackers for malicious purposes. As blockchain domains do not have a central authority and registrations contain unique encrypted hashes rather than an individual’s name and address, it is harder for law enforcement to perform site takedowns. The following are just a few examples of bad actors using blockchain.
Back in January 2016, one of the first groups to employ blockchain DNS to create a .bazar domain in an attempt to better secure their operations was a group known as The Money Team. In July 2017, the Joker’s Stash, a popular Automated Vending Cart (AVC) site used to purchase stolen payment card details, began using blockchain DNS alongside its established Tor (.onion) domain.
Blockchain technology has also allowed users to realize alternative models for online marketplaces. The site known as Tralfamadore, for example, uses blockchain as its back-end to store the necessary databases and code to support front-end user interfaces.
As cybersecurity professionals, we should continue to monitor for an uptick in the adoption of blockchain for the buying and selling of illicit goods. And while we’re at it, we should also continue to assess other emerging technologies that could be used for nefarious purposes.
Tomi Engdahl says:
Cryptojacking isn’t a path to riches – payout is a lousy $5.80 a day
Hackers shouldn’t quit their day scams if they want to eat
https://www.theregister.co.uk/2018/08/30/cryptojacking_pays_poorly/
Cryptojacking, the hijacking of computing resources to mine cryptocurrency, turns out to be both relatively widespread and not particularly profitable, according to a paper published by code boffins from Braunschweig University of Technology in Germany.
In a paper distributed via ArXiv, researchers Marius Musch, Christian Wressnegger, Martin Johns, and Konrad Rieck analyzed the prevalence of cryptomining on websites and found that 1 out of every 500 of the top million Alexa-ranked sites hosts cryptojacking code.
Where cryptocurrencies like Bitcoin depend on CPU cycles for solving the computational puzzles that generate currency, cryptocurrencies like Monero, Bytecoin, and Electroneum rely on memory resources. Commodity hardware can’t compete with GPUs and ASICs in the computation of Bitcoin hashes, but it can help churn out memory-bound calculations.
Fine in theory, sucks in practice
In theory, this can be remunerative. The researchers calculate that a cryptomining script on a popular website like Pornhub, with 81 million visitors a day last year, could earn US$50,208 per day, at an exchange rate of 1 XMR (Monero) per US$225. That’s less than the $81,000 per day the site would earn from advertising, based on a CPM of US$1.
https://arxiv.org/pdf/1808.09474.pdf
Tomi Engdahl says:
David Canellis / The Next Web:
Seattle-based exchange Bittrex delists Bitcoin Gold, as the fallout continues from a 51% attack on the cryptocurrency in May that netted attackers millions
Major cryptocurrency exchange delists Bitcoin Gold following $18M hack
https://thenextweb.com/cryptocurrency/2018/09/03/bittrex-delists-bitcoin-gold/
The threat of attack is very real for upstart cryptocurrency projects. Bitcoin Gold, a popular hard fork of Bitcoin, is set to be delisted from cryptocurrency exchange Bittrex.
The reason for the removal is that the currency has suffered a series of debilitating heists that netted thieves over $20 million in stolen funds.
Back in May, Bitcoin Gold was hijacked with rented computing power. After hackers took control of more than 51 percent of the overall hash power, more than 388,000 BTG (approx. $18 million at the time) was stolen from cryptocurrency exchanges like Bittrex. Hackers were able to use “double-spending,” a method of repeatedly tricking an exchange into transferring more coins than it should.
Tomi Engdahl says:
Japan is experimenting with a blockchain-powered voting system
Tsukuba will host the trial
https://thenextweb.com/hardfork/2018/09/03/japan-city-blockchain-voting/
Japan is the latest country to consider using blockchain for voting. Tsukuba is set to become the country’s first city to trial blockchain-powered digital voting.
The system will rely on the Japanese equivalent of social security cards to verify voter identity. Currently, the solution is being used to allow citizens to cast votes on “social contribution projects,” the Japan Times reports.
The system does not sound too dissimilar to conventional voting. However, rather than placing a mark against a relevant response for a vote and placing the ballot card in a secure box, voters will place their votes on a screen.
Tomi Engdahl says:
Belgium adds 28 new scam sites to its cryptocurrency blacklist
People still falling foul of the fake cryptomonnaies sites
https://thenextweb.com/hardfork/2018/09/04/belgium-cryptocurrency-blacklist/
The Belgian Financial Services and Markets Authority (FSMA) has warned netizens about the spread of illegitimate cryptomonnaies and blockchain platforms, as tricksters continue to dupe the general public.
The FSMA has strengthened its warning with an updated list of “cryptomonnaies” (Belgium’s surprizingly mellifluous word for cryptocurrencies) trading sites, which has grown to include over 70 known scams, with 28 being added in the latest update.
Scams in these cases are pretty simple. Users will go to a fake website looking to buy Bitcoin, Ethereum, or other cryptomonnaies. The buyer will send their fiat to the merchant, who then simply walks away, without ever sending the cryptomonnaies owed to the buyer.
Even though the FSMA has issued numerous warnings, and has been updating its list of known scammers since the end of February this year, complaints continue to roll in.
Tomi Engdahl says:
Diptendu Lahiri / Reuters:
Report: Goldman Sachs ditches plans for a cryptocurrency trading desk in the foreseeable future as regulatory framework remains unclear; cryptocurrencies slide — (Reuters) – Goldman Sachs Group Inc (GS.N) is ditching plans to open a desk for trading cryptocurrencies in the foreseeable future …
Goldman drops bitcoin trading plans for now: Business Insider
https://www.reuters.com/article/us-goldman-sachs-cryptocurrency/goldman-drops-bitcoin-trading-plans-for-now-business-insider-idUSKCN1LL1M0
Tomi Engdahl says:
Crypto market crashes after Goldman reportedly scraps trading plans
https://techcrunch.com/2018/09/05/bitcoin-and-the-crypto-market-is-crashing/?utm_source=tcfbpage&sr_share=facebook
The crypto market is down significantly today, practically across the board of all coins, following a report that claims Goldman Sachs has backed down on plans to start a dedicated cryptocurrency trading desk.
Bitcoin is down over five percent in the last 24 hours, but ‘altcoins’ have been hit harder. Ethereum (down 14 percent), XRP (down 13 percent), EOS (down 16 percent) and Litecoin (down 11 percent) are seeing bigger drops, according to data from Coinmarketcap.com.
“At this point, we have not reached a conclusion on the scope of our digital asset offering,” a Goldman spokesperson told Reuters in a statement.
Added to that, there may also be some concern around a Reuters reported that claims the EU is looking into regulating crypto.
Tomi Engdahl says:
95 Crypto Theses for 2018
https://medium.com/tbis-weekly-bits/95-crypto-theses-for-2018-ca7b74f8abcf
Tomi Engdahl says:
The 348,296th Article About Cryptocurrency
https://hackaday.com/2018/01/09/the-348296th-article-about-cryptocurrency/
Tomi Engdahl says:
Inside the Jordan refugee camp that runs on blockchain
Syrian refugees could regain legal identities that were lost when they fled their homes.
https://www.technologyreview.com/s/610806/inside-the-jordan-refugee-camp-that-runs-on-blockchain/
Tomi Engdahl says:
Kate Rooney / CNBC:
Goldman Sachs CFO says reports about the company abandoning plans to open a cryptocurrency desk are “fake news” — – The price of bitcoin and other top cryptocurrencies tumbled after a report that the bank was ditching plans to launch a cryptocurrency trading desk.
Goldman Sachs CFO says bank is working on bitcoin derivative for clients
https://www.cnbc.com/2018/09/06/goldman-sachs-cfo-calls-reports-of-shutting-down-crypto-desk-fake-news.html
Goldman Sachs Chief Financial Officer Martin Chavez called a report that the bank was ditching plans to launch a cryptocurrency trading desk “fake news.”
Chavez says the bank is working on a bitcoin derivative known as a “non-deliverable forward,” because of demand from clients.
He looked to knock down the report about the banking dialing back plans, but also make clear that there’s never been a timeline for this effort.
Tomi Engdahl says:
Wolfie Zhao / CoinDesk:
China’s Supreme People’s Court rules that blockchains can be legally used to authenticate digital evidence in legal disputes
China’s Supreme Court Recognizes Blockchain Evidence as Legally Binding
https://www.coindesk.com/chinas-supreme-court-recognizes-blockchain-evidence-as-legally-binding/
Blockchain can now be legally used to authenticate evidence in legal disputes in China, according to the country’s Supreme People’s Court.
The court released new rules on Friday – that take immediate effect – clarifying various issues relating to how internet courts in China should review legal disputes.
Part of the new regulation specifies that internet courts in the country shall recognize the legality of blockchain as a method for storing and authenticating digital evidence, provided that parties can prove the legitimacy of the technology being used in the process.
“Internet courts shall recognize digital data that are submitted as evidence if relevant parties collected and stored these data via blockchain with digital signatures, reliable timestamps and hash value verification or via a digital deposition platform, and can prove the authenticity of such technology used,” the Supreme Court said in an announcement.
The ruling comes in response to various questions that have emerged since the country established its first internet court in Hangzhou last year – one that handles disputes around internet-based issues, generally involving digital data.
Tomi Engdahl says:
Matthew De Silva / Quartz:
Ripple’s general counsel Brynly Llyr has left the company as it prepares for a class action lawsuit about whether its XRP cryptocurrency is a security or not
Ripple’s general counsel has left the company at an awkward time
https://qz.com/1381863/ripples-general-counsel-brynly-llyr-has-left-the-company/
The general counsel of one of the world’s leading cryptocurrency companies has departed her post. Ripple confirmed to Quartz that Brynly Llyr is no longer with the payment and remittance network. Per Llyr’s LinkedIn profile, she had served as Ripple’s general counsel since November 2016, and before that held senior legal roles at PayPal and eBay. The news of departure was reported first in Quartz’s Private Key newsletter.
“We’re grateful for all that she did to help build an incredible team,” a Ripple spokesperson said. “We wish Brynly all the best in her next endeavor and the team here at Ripple looks forward to the next chapter, where we will continue to pave the way in this ever-evolving and unchartered industry.”
Tomi Engdahl says:
The SEC has finally weighed in on the crypto-token frenzy, and nobody’s going to jail—yet
Tomi Engdahl says:
Michael del Castillo / Forbes:
Lightyear, a for-profit subsidiary of Stellar Development Foundation, acquires Chain, a Visa and Citi-backed startup making blockchain tech for finance industry — The for-profit subsidiary of the Stellar Development Foundation has purchased Chain, a venture backed blockchain startup …
Visa-Backed Blockchain Firm Embraces Stellar Cryptocurrency Via Merger
https://www.forbes.com/sites/michaeldelcastillo/2018/09/10/visa-backed-blockchain-firm-embraces-stellar-cryptocurrency-via-merger/#4c1cbe7f74c2
The for-profit subsidiary of the Stellar Development Foundation has purchased Chain, a venture backed blockchain startup with some of the biggest names in enterprise adoption among its customers.
As part of the all-cash deal for an undisclosed amount, San Francisco-based Chain’s existing investors, including Visa, Nasdaq and Citi Ventures, will all receive a return on their investment, according to Chain co-founder Adam Ludwin.
Tomi Engdahl says:
Erik Torenberg / atrium:
An overview of the two narratives around crypto: crypto as money, and crypto as technology for decentralized control, and how these views differ but can coexist
A Tale of Two Narratives: Money Crypto vs. Tech Crypto
https://www.atrium.co/blog/money-tech-crypto/
Indeed: I’ve noticed that when people talk about Why Crypto Matters and where The Big Opportunity is, they often begin from different assumptions and starting points. More importantly, there are often different endgames in mind, which leads to confusion:
Investors are unclear what thesis they’re applying to the market.
Startups aren’t sure how to package their solution to satisfy everyone.
Newcomers struggle to follow along.
Maximalists spend endless energy trying to convince one group to think like the other, without fully appreciating where they differ (or align!) on first principles.
Let me try to simplify by painting a (very broad) picture of the two main belief systems in the space:
a) Money Crypto: Maintains that the point of cryptocurrency is to redefine how money works by (re-)introducing Sound Money.
b) Tech Crypto: Another belief system holds that the real point is to redefine how the internet works by introducing Web 3.0.
Others call these respective narratives “Bitcoin Maximalism” and “Ethereum Maximalism”, but it’s broader and more expansive than that.
Tomi Engdahl says:
INSIDER:
Sources: Citigroup developed Digital Asset Receipts or DARs, similar to regulated ADRs, but for crypto, where bank holds asset and issues receipt for investor
Citigroup has created a new, less risky way of investing in crypto — and it may be a game changer for the industry
https://www.thisisinsider.com/citigroup-exploring-crypto-digital-asset-receipt-2018-9
Citigroup may have cracked the cryptocurrency code.
The New York-based bank has come up with perhaps the most direct way to invest in cryptocurrencies without actually owning them, according to people with knowledge of the plans. The structure would place cryptocurrencies within existing regulatory regimes and give big Wall Street investors like asset managers and hedge funds a less risky way of investing in the fledgling asset class.
Citi has developed an instrument it is calling a digital asset receipt. It works much like an American depositary receipt, which has been around for decades to give US investors a way to own foreign stocks that don’t otherwise trade on US exchanges. The foreign stock is held by a bank, which then issues the depositary receipt.
In this case, the cryptocurrency would be held by a custodian, with the so-called DAR issued by Citigroup, the people said.
It’s unclear what stage of development Citi is in with the project and when it might launch, but the bank has begun reaching out to potential partners.
Tomi Engdahl says:
Walmart is now selling bitcoins for $1
https://techcrunch.com/2018/09/11/walmart-is-now-selling-bitcoins-for-1/
Frankford bitcoins, are 1.42 ounces of milk chocolate wrapped in gold-colored foil made by Frankford Candy.
Frankford Candy, which has been in business since 1947, is hardly the first company to see opportunity in the rise of cryptocurrencies. Who can forget Long Island Iced Tea Corp, the non-alcoholic beverage company, that saw its shares rise six-fold after rebranding itself Long Blockchain Corp?
The price of bitcoin, which surpassed $20,000 in December before plummeting, now trades at about $6,240.
Tomi Engdahl says:
Hacker exploits EOS betting platform to ‘win’ jackpot 24 times in a row
EOS gambling dApps are being picked apart
https://thenextweb.com/hardfork/2018/09/10/eos-betting-platform-hacked/
An EOS-based decentralized app (dApp) has been paying out big time. Betting platform DEOSGames was drained of a significant chunk of its operating funds in a heist that netted one ‘lucky’ punter almost $24,000.
Over less than an hour, a decentralized dice betting game paid its jackpot 24 times to just one individual.
The wins were seemingly automatic. Each and every time runningsnail deposited 10 EOS, the jackpot was paid within an average of 30 seconds.
DEOSGames has confirmed the exploit on its social channels. “Yesterday, we got a malicious contract exploit our contract, ” a statement read. “It is a good stress test and we got significant improvements on contract level.”
DEOSGames has confirmed the exploit on its social channels. “Yesterday, we got a malicious contract exploit our contract, ” a statement read. “It is a good stress test and we got significant improvements on contract level.”
Tomi Engdahl says:
The second blockchain bubble is now complete — what’s next?
https://techcrunch.com/2018/09/13/the-second-blockchain-bubble-is-now-complete-whats-next/?utm_source=tcfbpage&sr_share=facebook
The last few months haven’t been easy for crypto investors. Following the dizzying highs of crypto trading late last year, which saw Bitcoin reach a peak of $19,276 and a market cap of $323 billion and Ether reach $1,152 with a market cap of more than $112 billion, prices have crashed. Today, Bitcoin trades at around $6,500, and Ether at $204. Their combined market caps have shed about $300 billion in value.
The situation has put crypto investors in quite the bind.
Blockchain’s two narratives’ problem
Blockchain’s story so far is the freakish combination of these two narratives. The enthusiasm of the “1990s” crypto investors on valuation never matched the enthusiasm of the “1960s” crowd of crypto researchers and core blockchain designers, who focused on the potential of these technologies over the vagaries of price.
many of the core engineers are hyper-aware of just how much work remains to be done to see blockchain become a foundational technology.
Indeed, the interaction between these two groups explains much of the kerfuffle this week over Buterin’s comments around the lack of “1000x” potential with blockchain.
The simple answer is that the 1960s crowd is right, and the 1990s crowd is just too early. Much more development is needed to get blockchain where it needs to be, and much more analysis is going to have to be done to figure out where the investment returns are going to be. Search and social ended up being the killer apps for the internet, but the winners in those categories hardly emerged instantly.
Tomi Engdahl says:
Brady Dale / CoinDesk:
After running Tezos blockchain network in beta since June, Tezos Foundation will officially launch its protocol on Monday
The $1 Billion Tezos Blockchain Is Officially Launching Monday
https://www.coindesk.com/no-longer-beta-200-million-tezos-blockchain-will-be-official-mainnet-soon/
The “experimental” phase of the Tezos blockchain is soon to conclude.
Announced today, the Tezos Foundation will officially launch the protocol on Monday, at which point the platform, whose token supply is today valued at more than $1 billion, will no longer be in beta, meaning it will be fully operational and run by its community.
Still, the designation is admittedly a semantic one. Tezos launched a mainnet, or live blockchain version of its software at the end of June, and since then its XTZ tokens have been tradeable.
Tomi Engdahl says:
Nikhilesh De / CoinDesk:
Cloudflare debuts IPFS Gateway, an easy way to access content from the P2P-driven InterPlanetary File System that does not require installing special software — Internet security provider Cloudflare is introducing a new product to help users more easily access the InterPlanetary File System …
Cloudflare Launches Decentralized Web Gateway at Its First ‘Crypto Week’
https://www.coindesk.com/cloudflare-launches-decentralized-web-gateway-at-its-first-crypto-week/
Internet security provider Cloudflare is introducing a new product to help users more easily access the InterPlanetary File System (IPFS), the decentralized storage protocol developed by Protocol Labs.
In a blog post Monday, Cloudflare announced it was launching a “Crypto Week,” where it will announce “support for a new technology that uses cryptography to make the internet better” every day. The first of these technologies is a portal to more easily access IPFS, as well as build websites on top of the technology.
In a second post, the company explains that the peer-to-peer nature of IPFS provides a number of redundancies for users trying to access a specific website or piece of data.
The second feature revolves around the fact that users can request data using hash values, rather than IP addresses
To ensure users can access data stored through IPFS, Cloudflare is offering a gateway which delivers content using Hyper Text Transfer Protocol Secure (HTTPS)
Tomi Engdahl says:
Bizarre botnet infects your PC to scrub away cryptocurrency mining malware
https://www.zdnet.com/article/bizarre-botnet-infects-your-pc-to-scrub-away-malware/
The peculiar botnet, based on Satori, compromises your devices for the sole purpose of cleaning them up.
Good guy vigilante, or error in coding? A strange botnet has appeared on the scene which instead of infecting devices in order to enslave them, appears to be actually wiping them clean of cryptocurrency mining malware.
On Monday, researchers from Qihoo’s 360Netlab said that Fbot, a botnet based on Satori botnet coding, is demonstrating some extremely odd behavior for such a system.
Satori is a botnet variant based on Mirai, the infamous botnet which was able to take down online services across an entire country.
Satori’s code was released to the public in January. Since then, we have seen variants which target mining rigs for cryptojacking purposes;
Botnets are generally bad news.
However, Fbot is not characteristic of your typical botnet.
The researchers say that Fbot appeared on the radar last week and it appears the only job this botnet has is to chase down systems infected by another botnet, com.ufo.miner, a variant of ADB.Miner.
The botnet targets Android devices — including smartphones, the Amazon Fire TV, and set-top boxes — for the purpose of cryptojacking and covertly mining for Monero (XMR) with the help of the Coinhive mining script.
Fbot, A Satori Related Botnet Using Block-chain DNS System
https://blog.netlab.360.com/threat-alert-a-new-worm-fbot-cleaning-adbminer-is-using-a-blockchain-based-dns-en/
Tomi Engdahl says:
Nikhilesh De / CoinDesk:
NY AG report on cryptocurrency trading platforms finds many are vulnerable to market manipulation, refers some to regulator for potential legal violations
New York AG Report Faults Crypto Exchanges for Manipulation Risks
https://www.coindesk.com/new-york-ags-office-takes-aim-at-crypto-exchanges-in-new-report/
The New York Office of the Attorney General (OAG) has released a report on cryptocurrency trading platforms, finding that many are vulnerable to market manipulation and referring several exchanges to another agency for potential violations of state law.
The newly-released Virtual Markets Integrity Initiative report drew issue with a number of practices put in place by the exchanges, including methods for monitoring and preventing market manipulation.
Indeed, the report states that several crypto trading platforms told the OAG that “it was impossible” to monitor or prevent market manipulation occurring on multiple platforms, meaning that exchanges are limited in their efforts to “police abusive activity.” While noting that exchanges like Gemini are seeking the ability to monitor more effectively, “some platforms do appear to be taking steps to improve surveillance.”
The NYAG’s office found that some exchanges could quantify how much trading activity on their platforms came from their own operations. Circle said it was responsible for less than 1 percent of the trading volume on Poloniex while BitFlyer USA conducts roughly 10 percent of the trades on its platform.
Notably, “Coinbase disclosed that almost 20 percent of executed volume on its platform was attributable to its own trading.”
https://ag.ny.gov/sites/default/files/vmii_report.pdf?mod=article_inline
Tomi Engdahl says:
Crippling DDoS vulnerability put the entire Bitcoin market at risk
This could have been waaaaay worse
https://thenextweb.com/hardfork/2018/09/20/bitcoin-core-vulnerability-blockchain-ddos/
The entire Bitcoin infrastructure has been issued with a stern warning: update Bitcoin Core software or risk having the whole thing collapse. Until now, Bitcoin miners could have brought down the entire blockchain by flooding full node operators with traffic, via a Distributed Denial-of-Service (DDoS) attack.
“A denial-of-service vulnerability (CVE-2018-17144) exploitable by miners has been discovered in Bitcoin Core versions 0.14.0 up to 0.16.2.” the patch notes state. “It is recommended to upgrade any of the vulnerable versions to 0.16.3 as soon as possible.”
As far as the attack vector in question goes, there’s a catch: anyone ballsy enough to try to bring down Bitcoin would have to sacrifice almost $80,000 worth of Bitcoin in order do it.
The bug relates to its consensus code.
only those willing to disregard block reward of 12.5BTC ($80,000) could actually do any real damage.
Tomi Engdahl says:
Japan Digital Currency Exchange Hacked, Losing $60 Million
https://www.securityweek.com/japan-digital-currency-exchange-hacked-losing-60-million
TOKYO (AP) — Hackers have stolen 6.7 billion yen ($60 million) worth of cryptocurrencies from a Japanese digital currency exchange, the operators said Thursday.
Tech Bureau Corp. said a server for its Zaif exchange was hacked for two hours last week, and some digital currencies got unlawfully relayed from what’s called a “hot wallet,” or where virtual coins are stored at such exchanges.
Earlier this year, the Tokyo-based exchange Coincheck reported a 58 billion yen ($547 million) loss of a cryptocurrency called NEM from suspected criminal hacking.
Tomi Engdahl says:
Colin Harper / Bitcoin Magazine:
Ethereum-based decentralized exchange Bancor to launch BancorX, an extension of its protocol to EOS blockchain that will allow cross-blockchain conversions
Bancor Bent on Cross-Chain Liquidity With Expansion to EOS Blockchain
https://bitcoinmagazine.com/articles/bancor-bent-cross-chain-liquidity-expansion-eos-blockchain/
In a bid to extend the reach of its services, Bancor is opening up shop on another blockchain.
The decentralized exchange protocol is expanding to EOS, a Bancor blog post reveals. Speaking to Bitcoin Magazine, Bancor’s Director of Communications Nate Hindman said the protocol will still allow users to trade Ethereum tokens, while its newest iteration, BancorX, will introduce this functionality to Ethereum’s rival, as well.
Announcing BancorX, the First Cross-Blockchain Decentralized Liquidity Network
https://blog.bancor.network/announcing-bancorx-the-first-cross-blockchain-decentralized-liquidity-network-aebb6a0dad8d
Tomi Engdahl says:
Alyssa Hertig / CoinDesk:
Bitcoin Core client, patched earlier this week, contained a second vulnerability which let attackers create new bitcoins above the 21M hard cap
The Latest Bitcoin Bug Was So Bad, Developers Kept Its Full Details a Secret
https://www.coindesk.com/the-latest-bitcoin-bug-was-so-bad-developers-kept-its-full-details-a-secret/
This week’s major bitcoin bug was even worse than developers initially let on.
The bug originally rocked the bitcoin world when it was reported the vulnerability could be used to shut down a chunk of the network.
While this sounded bad enough for many, it turns out developers for Bitcoin Core kept a second, bigger part of the bug a secret. As disclosed through an official Common Vulnerabilities and Exposures (CVE) report, an attacker could have actually used it to create new bitcoin – above the 21 million hard-cap of coin creation – thereby inflating the supply and devaluing current bitcoins.
Such a perversion of the rules would, at worst, according to many, make users not trust the cryptocurrency anymore.
Because of the disastrous implications of the bug, developers decided to keep it a secret, buying themselves time to fix the exploit and urge miners and users to upgrade their software.
And for now, the plan seems to have worked.
Over half of bitcoin’s mining hash rate has upgraded to the patched software version, meaning the attack can no longer be used
CVE-2018-17144 Full Disclosure
https://bitcoincore.org/en/2018/09/20/notice/
CVE-2018-17144, a fix for which was released on September 18th in Bitcoin Core versions 0.16.3 and 0.17.0rc4, includes both a Denial of Service component and a critical inflation vulnerability. It was originally reported to several developers working on Bitcoin Core, as well as projects supporting other cryptocurrencies
In order to encourage rapid upgrades, the decision was made to immediately patch and disclose the less serious Denial of Service vulnerability, concurrently with reaching out to miners, businesses, and other affected systems while delaying publication of the full issue to give times for systems to upgrade.
Tomi Engdahl says:
Brenna Hughes Neghaiwi / Reuters:
The Swiss Bankers Association unveils new guidelines for banks that could make it easier for cryptocurrency/blockchain companies to open corporate bank accounts
Switzerland tries to stem blockchain exodus by improving access to banks
https://www.reuters.com/article/us-crypto-currencies-switzerland/switzerland-tries-to-stem-blockchain-exodus-by-improving-access-to-banks-idUSKCN1M11H3
In an effort to maintain its status as a cryptocurrency hub, Switzerland has taken steps to help blockchain companies access the traditional financial system by making it easier for them to open corporate bank accounts.
Faced with an exodus of cryptocurrency projects from the country due to falling access to the banking sector, the Swiss Bankers Association (SBA) on Friday issued guidelines to banks who may want to do business with the start ups.
Around 530 blockchain startups have settled in Switzerland’s Crypto Valley hub
Only a handful of Switzerland’s 250 banks ever allowed companies to deposit the cash equivalent of cryptocurrencies raised in digital fundraisers known as initial coin offerings (ICOs).
Tomi Engdahl says:
Mr. Bitcoin Goes to Washington
https://breakermag.com/mr-bitcoin-goes-to-washington/
Tomi Engdahl says:
850 million dollars in cryptocurrencies stolen in 2018 alone
https://www.pandasecurity.com/mediacenter/news/millions-cryptocurrencies-stolen/
The new trend of stealing cryptocurrencies shows no signs of letting up. In the last few hours, the cryptocurrency platform Tech Bureau Cop in Japan has fallen victim to this technique, which is affecting more and more companies. In this case, the cybercriminals made off with 60 million dollars’ worth of Bitcoin, MonaCoins and Bitcoin Cash. However, despite the multi-million dollar loot, this is not the most lucrative crypto-theft so far this year.
Tomi Engdahl says:
Walmart has been working with IBM for over a year to digitize the food supply chain process using blockchain
Walmart is betting on the blockchain to improve food safety
https://techcrunch.com/2018/09/24/walmart-is-betting-on-the-blockchain-to-improve-food-safety/?sr_share=facebook&utm_source=tcfbpage
Walmart has been working with IBM on a food safety blockchain solution and today it announced it’s requiring that all suppliers of leafy green vegetable for Sam’s and Walmart upload their data to the blockchain by September 2019 .
Most supply chains are bogged down in manual processes. This makes it difficult and time consuming to track down an issue should one like the E. coli romaine lettuce problem from last spring rear its head. By placing a supply chain on the blockchain, it makes the process more traceable, transparent and fully digital.
Tomi Engdahl says:
Bitcoin Core Software Patches a Critical DDoS Attack Vulnerability
https://thehackernews.com/2018/09/bitcoin-core-software.html
The Bitcoin Core development team has released an important update to patch a major DDoS vulnerability in its underlying software that could have been fatal to the Bitcoin Network, which is usually known as the most hack-proof and secure blockchain.
The DDoS vulnerability, identified as CVE-2018-17144, has been found in the Bitcoin Core wallet software, which could potentially be exploited by anyone capable of mining BTC to crash Bitcoin Core nodes running software versions 0.14.0 to 0.16.2.
Tomi Engdahl says:
Laura Noonan / Financial Times:
More than 75 of the world’s biggest banks join the JPMorgan, RBC, and ANZ alliance, which is testing blockchain tech for faster payments among its members
https://t.co/PHJ8hwfUrP
Tomi Engdahl says:
David Canellis / The Next Web:
One-third of all tokens launched via an ICO in 2017-18 are not listed on any exchanges, despite half completing their funding rounds last year
One third of ICOs launched in the past two years aren’t listed anywhere
https://thenextweb.com/cryptocurrency/2018/09/25/one-third-icos-unlisted/
Despite investors dropping a whopping $12 billion into Initial Coin Offerings (ICOs) in the past year, 70 percent of cryptocurrencies outside of the top 100 are now valued less than the amount initially raised.
In fact, blockchain research unit Diar calculated that the bulk of the ICOs conducted in the past year are now just worth $2.2 billion. This represents an “eye watering” $6 billion loss across just a small part of the token ecosystem.
Tomi Engdahl says:
Jillian D’Onfro / CNBC:
Google is reversing part of its ban on cryptocurrency-related ads, plans to allow ads from regulated crypto exchanges in the US and Japan starting in October
Google ends cryptocurrency ad ban — but only for certain kinds of ads
https://www.cnbc.com/2018/09/25/google-reverses-ban-on-cryptocurrency-exchange-advertising-in-us-japan.html
Google is reversing part of its sweeping ban on cryptocurrency-related advertising and plans to allow regulated crypto exchanges to buy ads in the United States and Japan.
The new policy starts in October.
Facebook also started allowing some types of cryptocurrency-related advertising back on its platform in June.
Tomi Engdahl says:
Josh Constine / TechCrunch:
Compound, the Coinbase and Andreessen Horowitz funded startup, launches its money market protocol for shorting cryptocurrencies or lending them to earn interest
Compound launches easy way to short cryptocurrencies
https://techcrunch.com/2018/09/27/short-ethereum-zrx-bat-rep/
Think Ethereum and other crypto coins are overvalued? Now you can make money when their prices fall via Compound, which is launching its money market protocol for shorting cryptocurrencies today. The Coinbase and Andreessen Horowitz-funded startup today opens its simple web interface allowing users to borrow and short Ethereum, 0x’s ZRX, Brave’s BAT, and Augur’s REP token, or lend them through Compound to earn interest.
Compound’s protocol isn’t just useful for crypto haters, or HODLers who want to generate interest instead of just having their coins gathering dust in a wallet.
To make sure no one thinks they’re getting scammed, Compound is also releasing a transparency dashboard users can view to check up on all the assets moving through the protocol and see what Compound is earning. It charges 10 percent of what borrowers pay in interest, with the rest going to the lender.
Tomi Engdahl says:
CoinDesk:
Crypto mining company Bitmain files for Hong Kong IPO; draft filing shows $2.8B in revenue as of June 30 and $422.05M raised in funding round that ended Aug. 7
Bitcoin Mining Giant Bitmain Just Officially Filed for an IPO
https://www.coindesk.com/bitcoin-mining-giant-bitmain-files-ipo-prospectus-in-hong-kong/
Bitmain, the Beijing-based cryptocurrency mining giant, has officially filed an application to go public on the Hong Kong Stock Exchange (HKEX).
Published on Wednesday, Bitmain’s long-awaited initial public offering (IPO) prospectus follows various news reports that the mining giant has been mulling a Hong Kong listing for a multi-billion dollar public fundraising.
According to the filing, the firm made a total of $2,517,719,000 in revenue in 2017, a major increase from the $277,612,000 in revenue it generated over the course of 2016. As of June 30 this year, Bitmain has made $2,845,467,000 in revenue.
Of that revenue, Bitmain grossed profits of $1,212,750,000 last year and $1,030,151,000 for the first half of 2018, up from $151,351,000 over 2016. Before taxes
Hardware sales boom
Bitmain saw a huge boost to its mining hardware sales between 2015 and the first half of this year, according to the filing. In 2015, Bitmain generated roughly $107.8 million in revenue from its ASICs. For the first half of 2018, Bitmain made about $2.6 billion, marking a half-billion increase over 2017′s $2.26 billion.
The number of hardware products sold rose in line with their revenue. Bitmain sold 230,000 miners in 2015, 260,000 miners in 2016, 1.62 million miners in 2017 and, as of Q2 2018, 2.56 million miners.
Land grab
Bitmain has been scooping up land in China to build domestic cryptocurrency mining farm sites.
Tomi Engdahl says:
Wall Street Journal:
WSJ found ~$90M in criminal proceeds from fraud or hacks like WannaCry, laundered via 46 crypto exchanges; US-based ShapeShift processed $9M in suspect funds — Journal investigation documents suspicious trades through venture capital-backed ShapeShift — A North Korean agent …
How Dirty Money Disappears Into the Black Hole of Cryptocurrency
Journal investigation documents suspicious trades through venture capital-backed ShapeShift
https://www.wsj.com/articles/how-dirty-money-disappears-into-the-black-hole-of-cryptocurrency-1538149743?mod=hp_lead_pos8
A North Korean agent, a stolen-credit-card peddler and the mastermind of an $80 million Ponzi scheme had a common problem. They needed to launder their dirty money.
Tomi Engdahl says:
Alyssa Hertig / CoinDesk:
A major vulnerability present in Bitcoin codebase for 2 years and patched last week has prompted a heated debate on how to improve Bitcoin’s code review process — “Shock” is perhaps the word that best describes the mood ever since one of bitcoin’s most severe bugs was discovered and patched last week.
In Wake of ‘Major Failure,’ Bitcoin Code Review Comes Under Scrutiny
https://www.coindesk.com/in-wake-of-major-failure-bitcoin-code-review-comes-under-scrutiny/
“Shock” is perhaps the word that best describes the mood ever since one of bitcoin’s most severe bugs was discovered and patched last week.
As the community reels over the vulnerability that was hiding in the code for two years, and that could have been exploited to print more bitcoins than the 21 million is hard-coded to be produced, developers are wondering: Is there a way to prevent such a severe bug from being added to the code again?
Days after the discover, there hasn’t been any formal proposals.
It’s an important question, too – What if a malicious actor had found the exploit first? What if there are other hidden bugs in the code right now?
To this point, pseudonymous bitcoin subreddit moderator ‘Theymos’ urged the community not to forget the bug.
He argued it was “was undeniably a major failure”
The community’s ‘fault’
Still, developers argue more could be done to make sure the digital money works smoothly.
Theymos thinks one avenue would be to build “more sophisticated” tests tailored at locating severe, but hard to find bugs, like the one last week. “Perhaps all large bitcoin companies should be expected by the community to assign skilled testing specialists to Core,” he continued, adding:
“Currently a lot of companies don’t contribute anything to Core development.”
Bitcoin Core contributor James Hilliard stressed much the same, suggesting that developers can increase the “amount” and “quality” of testing. Though, this might be easier said than done. Bitcoin Core contributor Greg Maxwell agreed in Theymos’s thread that testing is important, but the quality and detail of the tests is important.
“Directing more effort into testing has been a long-term challenge for us, in part because the art and science of testing is no less difficult than any other aspect of the system’s engineering. Testing involves particular skills and aptitudes that not everyone has,” Maxwell said.