Around a year ago Walmart China, PwC China dn VeChain jointly announced they were setting up the Walmart China Blockchain Traceability Platform. This Platform would allow Walmart China to make use of blockchain technology to trace its products. Consumers would be able to scan the products on the shelf and have access to detailed information on the product, for example, its source, product inspection reports, and logistics process. Their expectation was that by the end of 2020, 50% of sales of fresh meat, 40% of sales of packaged vegetables, and 12.5% of sales of seafood would be traceable.
Almost a year later, VeChain announced on 2nd June 2020 that Walmart China is committing Sam’s Club China, another of its businesses towards collaboration with VeChain.
What is Sam’s Club China?
Owned by Walmart China, Sam’s Club China is branded as a members-only premium supermarket. Currently, Sam’s club has a total of 23 clubs in China. There are plans to expand to have a further 40 to 45 clubs either operational or under construction in China by the end of 2022.
Its clubs are generally large scale supermarkets averaging around 20,000 square meters and offering groceries in bulk and other goods such as household appliances, home goods, etc. Sam’s Club maintains its premium branding by providing either the best quality product in a particular category or the best-selling brand at its clubs. Sam’s Club also offers its own premium store-brand products called Member’s Mark.
Launch of Sam’s Club Blockchain Traceability Platform with VeChain
The launch of the Sam’s Club Blockchain Traceability Platform coincides with Sam’s Club’s “Taste of Sam’s” campaign. This campaign aims at letting customers experience luxury through recipes featuring premium quality foods and products which can be purchased from Sam’s Club.
The products featured in the campaign include Member’s Mark products which make use of VeChain’s ToolChain technology. Combined with cold-chain IoT and other traditional software and hardware sensors, stakeholders in the supply chain will be able to upload data onto the VeChainThor public blockchain. This data would be contained in a secured QR code which would be tagged onto each product. (https://punandjokes.com/) Hence those involved in the supply chain and even the average consumer would be able to scan the QR code using their smartphones to access information on the product such as its packaging information, its origins, storage requirements, etc. And since this data was stored on the VeChainThor public blockchain, it cannot be tampered with.
As an example, in the short rib recipe above, customers can pick up a pack of the short-ribs featured in the recipe from Sam’s Club and scan the embedded QR code for more information. The below picture shows the kind of information customers can expect to see. Such as how the product was shipped from its place of origin, the name and location of the manufacturer, best-before times and certification processes.
Currently there are over 20 product lines, including Member’s Mark products which make use of VeChain’s traceability platform. It is expected that more products will be included in the future.
Bayer China announced its partnership with VeChain during an interview with VCBeat on 28th May 2020- a Chinese news publication focusing on health developments in China. For an in-depth guide to what is Vechain and it’s core features, check out our Vechain Coin Guide
About Bayer China
Bayer has links in China since as early as 1882, focusing on the core competencies in the areas of healthcare, nutrition and agriculture. Their aim is to improve quality of life through research and development on preventing, alleviating and treating diseases, as well as ensuring that consumers get healthy, safe and sustainable food. In 2019, Bayer has over 9,000 employees in the Greater China region and sales have well exceeded 3.7 billion Euros.
VeChain becomes “Partner-for-Life” with Bayer China
VeChain beat out dozens of competitors and won the Bayer China G4A Partnerships Program in 2019. This Program was created by Bayer to give qualified companies funding, mentorship and networking opportunities to its winners. Most importantly, to become a “partner for life” with Bayer so that the company will become a direct partner and be used with Bayer’s products and services.
For the purposes of the Program in 2019, Bayer required competitors to solve the issue of Digitised Clinical Trial Traceability. Competitors were required to work directly with Bayer and develop a feasible solution for the issue which would eventually be ready for deployment in line with Bayer’s own milestones and planning. At the end of the competition, VeChain was the only company that was able to satisfy Bayer’s requirements with its solution- CSecure.
Importance of Digitialised Clinical Trial Traceability
With still so many unknowns in the medical field and novel yet incurable diseases emerging such as SARS-CoV-2, medical researchers are constantly racing against the clock for the sake of saving lives. Thus it is important to ensure that drug clinical trials are conducted efficiently and when lives are involved, without room for any error. In particular, the data that is collected forms the heart of this process, and is a critical part of the research, development and adoption process for any new medical intervention- including drugs and other forms of treatments. Any issues with this data, such as tampering or errors would hence be very detrimental to the trial process, potentially even ruining it and worse, affecting human lives.
Hence a solution is needed to ensure that the data collected during the various stages of the trial process is transparent, secure and credible.
What is VeChain’s CSecure platform?
CSecure was created by VeChain as a solution to Bayer’s issue of needing digitised clinical trial traceability. The CSecure platform makes use of VeChain’s existing product ToolChain– a kit containing all the necessary hardware, software and service protocols to onboard a business onto the VeChainThor blockchain.
With CSecure, data obtained from the various stages of clinical trials for drugs are uploaded on the VeChain Thor Blockchain. So that other stakeholders in the process such as researchers, suppliers, distributors, partners and end users can have access to this data. As the data is recorded on the blockchain, the stakeholders accessing the CSecure platform are assured that the data and transactions recorded are traceable, transparent and auditable. (bricks4kidz.com)
Specifically, each medical product is binded with a QR code with a unique VID (VeChain ID) and recorded on the VeChainThor Blockchain. During the trial process, information that is added to the blockchain is time-stamped, user-identified and cannot be changed. So if there is a discrepancy between the product’s digital profile and real-life attributes, the party responsible can be identified and the situation remedied.
EnjinCraft – Enjin Brings Blockchain economies to Minecraft
EnjinCraft breathes new life into Minecraft by bringing the best of digital economies and Non-fungible Token (NFT) collectibles. Whilst Minecraft is the biggest sandbox game in the world, it has always lacked a true economy. Enjin’s new Minecraft integration and SDK allow players to truly own items and move them across servers. With the launch of the Minecraft plugin on the 28th of May 2020, server owners can use a simple plugin to allow blockchain items to be used in their Minecraft worlds.
With Enjincraft, players can equip ERC-1155 assets directly as Minecraft items. This also allows for the trading of items outside of the game and into the Enjin Wallet. Enjin’s new integration allows for the direct trading of ERC-1155 assets, Ethereum and Enjincoin directly in Minecraft.
Players will be able to enter “Enjincraft” and find treasures such as swords, armor, and tools in the game. After finding these items, players can have true item ownership as they are Non-Fungible Assets (ERC-1155 tokens). Items can be directly stored in the Enjin Wallet, allowing for easy trades or even melting.
First Enjincraft World
Enjincraft’s first world is filled with quests, stories and many explorable towns and cities. For those daring to explore, the world is packed with treasure chests and mysteries that can be solved. Treasure chests in the game give out real ERC-1155 items that have value based on Enjin Coin.
Map of Enjincraft
For beginners, the world map is very handy as it marks all the main locations in the game. This map could be discovered in Witek’s House in the first city (follow the main road into the town).
Binding Enjin Wallet
Players can keep valuable items Enjincraft via the Enjin Wallet. The onboarding process is very simple:
This process should take around 1 minute and after which the account will be bound and ready to play. The wallet status will display as linked and the Enjin Coin panel will show the ENJ and ETH balance of the wallet. This makes Minecraft very much similar to Massively Multiplayer games like World of Warcraft.
Enjincraft ERC-1155 Items
Enjincraft Items are cross server and can move between realms. Currently owners of the items could be explorered using the Enjinx blockchain explorer.
Enjincraft discussion and interview with Enjin CTO Witek Radomski
EnjinCraft is Enjin’s newest plugin for Minecraft servers. The EnjinCraft plugin will enable server owners to fully integrate a blockchain economy into Minecraft.
This means that Minecraft server owners will be able to provide players with tangible ownership of in-game assets and currencies. The in-game assets can be used in server owners’ chat rooms, websites and the Enjin Multiverse.
Stormwall is an example of Enjin’s multiverse assets is Stormwall. It is a playable item created by Enjin that can be used in 32 of Enjin’s games.
DonationCraft was Enjin’s first Minecraft plugin. It allowed MineCraft servers to accept Paypal and credit card payments. According to Enjin, DonationCraft has over 5 million downloads and allowed server owners to make millions of dollars.
As first reported by Asia Crypto Today, to introduce people to Enjin’s MineCraft plugin, Enjin has launched the closed beta version of EnjinCraft Server One, a Minecraft server built with Enjin’s plugin.
EnjinCraft Server One has blockchain-based Minecraft weapons, armor, and accessories for players to find and win.
Search and collect blockchain assets in Minecraft’s expansive universe
In-game items are backed with Enjin Coin (ENJ). Players can get Enjin Coin by melting them via the Enjin Wallet. After melting Enjin Coin, it can be transferred into other cryptocurrencies. Enjin Coin can also be used to purchase gift cards from mainstream retailers. For example, Amazon, Apple, and Uber.
Enjin Blockchain SDK for Java
The SDK for Java allows Java developers to create and integrate blockchain assets onto their platform.
For Enjin’s Java SDK, the Company has adopted an open-source codebase. Therefore, Java SDK users can modify and build upon the SDK however they want. Enjin mentions that they encourage the spirit of collaboration and hopes users can use the SDK to build things they could never have imagined.
Players can convert their in-game assets into real life value.
Users will be able to use Enjin’s platform to integrate a blockchain economy onto their servers. This will mean users can integrate blockchain economies onto games, web applications and even andriod apps.
You can start building with the Blockchain SDK by creating an Enjin account here.
By signing up with the Enjin Spark early adopter program, users will be given various early adopter benefits. This will help them market, fund and monetize their projects.
Introducing EnjinCraft: The World’s First Blockchain-Powered Minecraft Server
Seeing in-game items as mere pixels is a thing of the past. Enjin is allowing developers to integrate blockchain economies into the online world through with Enjin’s Java SDK.
And with MineCraft Server One, Enjin is showing how these economies can work in mainstream gaming. We will hopefully finally see a win-win situation for developers and players. Developers are able to generate more profit. Whilst allowing players to earn real life value through in-game items.
OKEx cryptocurrency exchange is one of the top-ten global cryptocurrency exchanges by daily volume (over USD$1.68 million) and provides services in over 100 countries. This popular Exchange conveniently offers fiat-to-fiat and crypto-to-fiat trading, futures trading and wallet options all on one site. In this review, we’ll look at OKEx’s features and some controversies that you need to know.
Here are some of OKEx’s key features and functions on offer:
Crypto-to-crypto and crypto-to-fiat trading pairs;
Customer to customer (C2C) trading platform;
Spot and Margin trading;
Futures contracts;
Perpetual swaps;
Options; and
Integrated storage wallet.
Let’s take a look at each of these features in detail.
There are only a handful of exchanges out there that offers crypto-to-fiat trading pairs. With OKEx, customers can purchase cryptocurrencies directly on the Exchange. (https://www.curlygirldesign.com/) Most major fiat currencies such as USD, EUR, GBP, CAD etc. are accepted, as are most payment methods.
OKEx’s C2C trading platform allows users to trade a selection of cryptocurrencies amongst themselves, similar to an Over the Counter (OTC) trading desk. Payment can be made using fiat currency.
Spot trading allows users to buy or sell cryptocurrencies instantly using the funds they have on hand. Whilst Margin trading lets users use borrowed funds to increase their profits.
Futures contracts allows trading of the cryptocurrency at a predetermined price at a future date, irrespective of the market conditions at the time the contract expires. OKEx has a peer to peer leveraged trading platform, and does not require traders to top up additional margin. According to OKEx, a trader’s losses are limited to the margin they paid for entering into the futures contract. Learn more about futures trading at OKEx here.
Perpetual Swap trading allows traders to buy and sell contracts which do not have an expiry date and are essentially bets on the future value of a cryptocurrency. For OKEx’s Perpetual Swap, a traders’ profits and losses are realised and settled twice a day and trading up to 100x leverage is available. However, leverage trading is very risky so extra caution is essential. Learn more about OKEx perpetual swap and its fees here.
Options entitle the contract holder to buy and sell (depending on what contract they hold) the underlying asset i.e. cryptocurrency on a fixed day in the future. It is different from futures contracts in that the person who holds the contract can choose to exercise the option of buying or selling the underlying asset within a specified time. However options contracts still have an expiration date by which the contract holder must exercise their option.
One unique feature of OKEx is its integrated storage wallet called OKEx Wallet. Similar to many other exchanges, OKEx has a mobile app available on the App Store and Google Play Store for convenient trading on the go. However with the OKEx app, the OKEx Wallet serves as a software wallet where you can store multiple cryptocurrencies separately from your trading account. This can also give you an extra layer of security by having your assets spread out in different locations.
OKEx mobile app
History of OKEx
OKEx was founded in 2017 by Star Xu. Originally based in China, the Exchange relocated to Malta in 2018 which has a better regulatory framework for blockchain related activities. OKEx is part of OK Group, which is a blockchain technology company founded in 2013. As at 2018, the Exchange has over 800 employees and serves customers in over 100 countries.
Supported Countries
OKEx is available in more than 100 countries. However its unavailability in the US is a huge downside. These are some other countries where the Exchange is unavailable:
American Samoa
Bangladesh
Bolivia
Crimea
Cuba
Ecuador
Guam
Hong Kong
Iran
Kyrgyzstan
Puerto Rico
Sudan
Syria
US Virgin Islands
Supported Cryptocurrencies and Payment Methods
OKEx supports a wide array of cryptocurrency options for traders and investors to transact. The list numbers in the hundred and include:
Bitcoin (BTC)
Bitcoin Cash (BCH)
Ethereum (ETH)
Ethereum Classic (ETC)
Tether (USDT)
Litecoin (LTC)
EOS (EOS)
Qtum (QTUM)
NEO (NEO)
Ontology (ONT)
Mithril (MITH)
Nano (NANO)
FirstBlood (1ST)
Ark (ARK)
Bitcoin Diamond (BCD)
Bitcoin Gold (BTG)
Zilliqa (ZIL)
DigiByte (DGB)
Stellar (XLM)
Monero (XMR)
Notably, as mentioned above OKEx accepts fiat currencies including USD, EUR, GBP, CAD etc.
Traders also have a wide variety of payment methods for purchasing cryptocurrencies. These include:
Bank transfer;
Credit (Visa and Mastercard) and debit card payments from select jurisdictions;
Cryptocurrency transfer from an off-exchange wallet or from a separate exchange to the OKEx exchange;
WeChat; and
Alipay.
Deposit and Withdrawal Fees
OKEx does not charge deposit or withdrawal fees.
Trading Fees
OKEx adopts a maker-taker fee schedule to encourage more placements of orders and liquidity. Accordingly, the maker fee is lower than the taker fee. The maker and taker fees start from 0.10% and 0.15% respectively. Here’s the differences between maker and taker fees:
Maker fees: Payable when the trade order isn’t immediately matched with an existing order on the order book.
Taker fees: Payable when the trade order is immediately matched with an existing order on the order book.
Like other exchanges, OKEx has a VIP program to reward users who frequently trade with them. Users who hold more of OKEx’s token-OKB and have a high 30-day trading volume can get progressively more discounts on the maker and taker fees. In particular, higher level VIPs are even given rebates on the maker fees.
OKEx VIP tiers
Moreover, traders who satisfied OKEx’s KYC verification process, have at least 20 BTC balance and satisfy the Exchange’s trading requirements are eligible to join OKEx’s Market Maker program. Depending on whether you are joining the program for OKEx’s Spots, Futures or Perpetual Swaps markets, users can get -0.005% (i.e. a rebate) on maker fees and 0.04% on taker fees.
Accepted Payment Methods
The exchange has a number of payment options for customers depending on your location. You are advised to reach out to the support team if unsure that a payment option is not available in your country. These options include:
Bank transfer;
Credit and debit cards;
Cryptocurrency transfer from an off-exchange wallet or from a separate exchange to the OKEx exchange;
WeChat network payments; and
Alipay system.
Controversies
The Exchange faced several challenges in 2018. In August, after a large wrong way bet by one of its users, the Exchange transferred the losses onto its other traders. Later on in November, the Exchange suddenly change the terms of its Bitcoin Cash contract, forcing an early settlement and leaving traders suffering from losses. The Exchange’s explanation was that it was to protect traders from any volatility which may arise out of the Bitcoin Cash split. Yet some traders lost over USD $700,000, and many were prompted to file complaints with the Hong Kong’s Securities and Futures Commission.
Further, there was a massive scare in September 2019 when Twitter user Whale Alert found that more than USD $270 million was sent from the Exchange to an unknown account. This prompted OKEx’s head of PR, Jennifer Chow to go on Twitter to confirm that it was only a regularly scheduled wallet maintenance. No one has come forward on that occasion saying they suffered any losses as a result. So it was unlikely to be a hack.
OKEx uses distributed storage to safeguard against losses in the event of hacking. This is because the exchange has various cold storage locations across the world to limit asset exposure. Additionally, the network has offline private keys to exchange hot wallets. Therefore, only a minimal amount of assets is held in the exchange hot wallet to boost security. OKex has also gained favorable exchange review ratings from different crypto security agencies.
OKEx also has a robust system to ensure customer account security. These tools include 2FA verification, mobile verification codes for withdrawals and changing settings, and anti-phishing codes in every OKEx email. They also have a bug bounty program to reward any persons who discover and report security vulnerabilities in the Exchange.
The Exchange did suffer a hack in August 2017 where one user’s account was compromised and lost 200 Bitcoin (then worth around USD $750,000) as a result. In that case, OKEx blamed the situation on hackers, rather than any issues with the Exchange itself. It is also still unclear whether the Exchange was really hacked in September 2019. Though there are no reports of any users coming forward to say they have suffered losses. So far, unlike some other cryptocurrency exchanges, OKEx has not suffered a confirmed hack involving multiple victims.
Based on their track record, OKEx seems to be a safe Exchange to use. But some other exchanges have insurance funds to cover any potential losses from hacks, which does not seem to be the case with OKEx. This could be a turn-off for some users. Notwithstanding this, they do have the usual security measures that you’d expect from any reputable exchange. However, it is still advisable to only store assets you will trade imminently in an exchange wallet and store the remainder of your funds in an offline hardware wallet.
OKEx Exchange has a simple and easy to use interface. This makes it a solid exchange option for customers. The exchange features a large number of listed coins with various functions and competitive trading fees. On the downside, the mobile app has room for development. The Exchange also has to be more transparent regarding the veracity of its daily volume figures. This is something certain analysts have looked into. Nonetheless, the fact that OKEx is accessible and fairly liquid keeps it in good standing with most in the crypto economy.
Pros
Good track record with no significant hacks so far.
Offers fiat-to-crypto trading so users can easily enter into, and “cash out” their cryptocurrencies.
Built-in software wallet in its app means convenient on the go trading and using cryptocurrency.
Wide range of functions for traders to choose from.
Cons
Not available to those in the US.
Unknown whether they have an insurance fund to cover users’ losses in the event of a hack.
OKB is OKEx’s own utility token. On the Exchange, users can hold OKB to enjoy trading fee discounts. OKB however has lots of different functions outside of the Exchange. Such as using OKB to subscribe for BitTorrent’s high-speed ad-free downloading or pledging your OKB for cryptocurrency lending. To learn more about OKB’s functions, click here.
Is OKex available to US customers
Currently OKex is not available to US residents or citizens.
Where can I download the OKEx trading app
OKEx offers both iOS (iPhone) and Android apps for trading on the go. You can download these apps via the official Apple Store or Google play store
How to avoid OKEx Fees
To get the lowest exchange withdraw fees, withdraw with options such as ERC-20 Tether (no Omni). You can also reduce fees by using the OKB coin, which offers trading discounts.
Is OKEx safe to trade
Yes. OKEx is one of the top tier exchanges in the world.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
Private keys are made of numbers and letters, they are used to uniquely identify users which will allow them to perform secure transactions.
A cryptocurrency private key uniquely identifies, authenticates, and grants you access to your account, enabling you to spend or send the cryptocurrencies in your wallet. This means that you will lose your assets if you lose your private key. Fortunately, there are methods to help store your private keys as will be seen later.
Private Key vs Public Key- What’s the difference?
Private keys are NOT public keys. A public key or address allows other users to identify you and your account during a transaction.
By way of analogy, a public key is like a bank account number which others can know and they require it to transact with you. On the other hand, the private key is your PIN code which you need to access your bank account at the ATM. Only you should know that secret PIN code as anyone who knows it can withdraw funds from your account.
To learn more about how this technology came about, check out my interview with one of the pioneers of public-key cryptography-Whitfield Diffie.
Father of cryptography: Whitfield Diffie
How are private keys generated?
The platform first generates a private key using random mathematical sequences. From there, the public key is generated.
How do you access your cryptocurrency using a private key?
There are 2 ways to access your cryptocurrency once you have a cryptocurrency account and a private key:
Vsit a reliable Digital Ledger Technology (DLT) website using your internet browser and log onto your account using your private key. The site will confirm that the account matches the private key and allow you to view and perform transactions online. However this method of directly logging in through a browser is inconvenient as you must input all the alphanumeric characters of your private key every time you wish to transact; or
Use a cryptocurrency wallet. With this wallet, all your private keys will be stored and accessed with a simpler to master authentication phrase. The wallet will provide the private key when you make a transaction. There are several kinds of wallets which store your private and public keys, e.g.
Speaking of wallets, you’ll also hear people mentioning “hot wallets” and “cold wallets”. It may sound confusing at first, but it simply refers to whether they are connected to the internet or not. Hot wallets are connected to the internet, whilst cold wallets are not.
What is a seed phrase / recovery phrase? What does it have to do with your private key?
In our wallet setup tutorial videos you there will be a step where you need to write down and keep in safe custody a string of words. This is known as your seed phrase. The seed phrase is generally 12 or more English words which is used to encrypt your private key into an easier to understand format (i.e. instead of a string of letters and numbers). Therefore, anyone who has access to your seed phrase has access to your private key.
How can I keep my seed phrase safe?
Your seed phrase (or recovery phrase) is essentially your private key, but encrypted in an easier to understand format. Therefore it is crucial to keep it safe from hackers and thieves. Here’s some tips and tricks which you could consider to keep them safe.
Recording your seed phrase:
Write down your private keys using pens with permanent ink and paper that would not smudge or cause ink to fade over time (e.g. paper which receipts are usually printed on).
Laminating the paper which your seed phrase is recorded on to avoid water damage.
Avoid the cards provided to you by the wallet manufacturers to write down your seed phrase i.e. do not use the recovery cards provided by say Ledger to record your Ledger seed phrase. This is to try and make it that much more difficult for thieves to piece the puzzle together.
There may be debate on this, but some have suggested to have more than 1 copy of the seed phrase in case it gets lost.
For those who are worried about using pen and paper. Some companies such as Cryptosteel which sells devices with metal tiles for you to record your recovery seed on.
Some have even come up with the idea of memorising the entire phrase themselves, or having their trusted friends and family to memorise several words each.
Confirming your seed phrase: As a best practice, once you’ve copied down your seed phrase you should confirm the phrase with the following steps. Firstly to send a small amount of cryptocurrency to the public key that is generated, then to delete the account from your device. Finally to import your account to your device again. If you see the same amount of cryptocurrency in your device, then the seed phrase correctly corresponds to your account.
Storing your seed phrase: if you have several copies of your seed phrase, you can store it in several discrete locations which are ideally safe from the elements and not obvious to find. Another best practice is also to keep your seed phrase in a separate location from your hardware wallet.
What happens if you lose your private key?
If you lose your private key, you will not be able to access any funds in your account. Because of the secure nature and random mathematical sequences used to generate the private key, nobody will be able to recover your private key and consequently the cryptocurrencies.
It is therefore advisable that you keep your private key very safely.
Using a cryptocurrency hardware wallet can prevent loss of your private key.
When setting up the wallet and syncing with the accounts, users must set an 18 to 24-word recovery phrase. This recovery phrase is then used to restore your device and consequently your private key.
Cryptocurrency private keys and cybersecurity
Anyone that has access to your private key can access your funds. This is the same for the recovery phrase.
Therefore, be careful not to reveal your private key to anyone. You should also be careful not to inadvertently give thieves access to your funds by saving your recovery phrase online or taking photos of it.
To prevent theft, one option that some people use is to save the private key offline on a paper wallet.
Conclusion
A cryptocurrency private key is a unique identifier that distinguishes your cryptocurrency account from others. It generates the public key that your trading partners will use to transact with you, and allows you to log in and transact with them.
Therefore you should ensure your seed phrase/ recovery phrase and thus your private keys remain safe.
Updated 30th March 2020: Added 2 new sections “What is a seed phrase / recovery phrase? What does it have to do with your private key?” and “How can I keep my seed phrase safe?”
Bitfinex has been in some trouble since 24 April 2019 when the New York Attorney General (NYAG) obtained a Court Order against iFinex, Bitfinex’s parent firm to stop violating New York law and defrauding New York residents. In the Order, iFinex was accused of covering its $850 million losses by borrowing from Tether’s reserve. The NYAG also obtained a preliminary injunction against Bitfinex or Tether from accessing its reserves.
This also caused a stir within the cryptocurrency community as it was essentially revealed that Tether is not fully backed by cash. Rather, it is only 75% backed by cash with the remaining through loans or other securities.
To learn more about Tether (USDT) check out my video below:
https://youtu.be/2XHYkaSemqc
Tether (USDT) Explained-is Tether a scam?
What is the Bitfinex Initial Exchange Offering (IEO)?
Amid a gaping $850 million hole on Bitfinex’s financial books, Bitfinex has released its official white paper indicating its plan to issue an initial exchange offering (IEO).
The white paper states that 1 billion tokens dubbed LEO will be sold to investors. Notably, LEO tokens will be purchased using USDT, a stable coin issued by Tether Ltd which is also owned by iFinex.
To appease investors, the LEO tokens will enable them to enjoy discounts when trading on Bitfinex and EOSfinex. Additionally, the same benefits will be available on other platforms operated or owned by iFinex.
To evade regulations, the tokens will not be available to investors in the United States or any U.S. persons.
Will the Bitfinex IEO save the exchange?
Notably, the exchange is conducting the initial exchange offering to stitch the $850 million hole in its balance sheet.
Whether the amount will be enough to save the troubled exchange is debatable. Firstly, the chance of success is very high since this is not the first time the exchange is raising tokens to cover up for losses. In 2016, Bitfinex pulled a similar stunt to cover losses incurred after a security breach on its platform. As it did then, the exchange is replicating the same scheme; selling ‘temporary tokens’ which it later buys back.
From the outlook, iFinex has a complex but well thought out plan. Since LEO will be purchased with USDT, raising $1 billion will be enough to reinstate the USDTs 1:1 tether to the U.S dollar, plus some change. iFinex can deposit the change into Bitfinex’s account without going against the court order issued by the New York Attorney General. It will then help settle the loan that Tether gave Bitfinex to cover for the loss.
The only reason that Bitfinex will be able to get away with this plan is that virtual currency exchanges do not fall under the same regulatory framework as traditional financial institutions.
Bitfinex CTO confirms rumours that it has raised $1 billion
. @bitfinex is able to raise 1b USDt in 10 days, in a private sale. Private companies, giants in our industry and outside, made investments for > 100m each. A legion of inside and outside users made investments for > 1m each.
Bitfinex’s CTO Paolo Ardoino has confirmed via social media on 13 May 2019 that the Company was able to raise $1 billion USDT by private sales in 10 days.
What happens next? Update: new developments in Court case
The legal proceedings against iFinex by the NYAG are ongoing.
New Court documents were filed on 13 May 2019 where NYAG and Bitfinex are disagreeing on the terms of the injunction.
On the one hand, the NYAG wants to prevent Bitfinex or any of its affiliated entities from accessing Tether’s fund reserves and a 90-day injunction.
On the other hand, iFinex is proposing that its affiliated entities should be able to access the funds, and a shorter period of 45-days for the injunction. However they make this proposal without waiving their previous motion to vacate the NYAG’s previous Court Order entirely.
As both sides cannot come to an agreement on the terms of the injunction, or at all, it is likely that Judge Joel M. Cohen, who oversees this case would want to schedule a hearing. This is so both parties would have a chance to present their arguments and for the Court to come to a determination on these opposing views.
However as CoinDesk reports and as seen from the Court documents filed, it is unclear when this hearing will be.
Court gives Bitfinex room to conduct its business. Bitfinex praises Judge’s decision.
On 16th May 2019, Judge Joel M. Cohen Ordered that the terms of the preliminary injunction should be tailored so that the legitimate business activities of Bitfinex and Tether would not be interfered with.
Specifically the Court ordered that:
Tether can now loan assets to Bitfinex or other parties in its normal course of business;
Tether can only distribute funds from its reserves for payroll, and paying contracts, consultants or vendors;
Bitfinex or Tether must provide the documents asked for in the NYAG’s original subpoena; and
The injunction will expire in 90 days. BUT the NYAG can request for the period to be extended.
Bitfinex considers this a victory. In its statement, Bitfinex repeated that the NYAG’s order was made in bad faith, and says the Court’s decision leaves “no doubt” that Tether and Bitfinex are entitled to continue running their business as normal.
Update: LEO token will list on Exchange starting 20 May 2019
Bitfinex announced on 17 May 2019 that its LEO token will commence trading on 20 May 2019 at 8:00a.m. UTC on Bitfinex.
It is considered that LEO token is a utility token similar to Binance’s BNB token.
The token will be tradable against BTC, USD, USDt, EOS, and ETH.
VeChain ToolChain could bring blockchain technology to the masses. Toolchain allows anyone to use the power of blockchain without complicated programming or engineering. We always hear a lot about blockchain projects including VeChain partnering with big names. Examples being DNVGL, BMW, PwC and others (Click here to find out more about Vechain and its partnerships).
According to statistics from the United Nations, over 90% of firms worldwide are Micro-, Small and Medium-sized Enterprises (MSMEs).
VeChain’s ToolChain seems to recognise their importance and is bringing its blockchain technology to them.
What is VeChain?
VeChain is a blockchain platform which supports the creation of smart-contracts. These are self executing contacts that have a guaranteed outcome without third party trust. This allows for the creation of decentralized applications which is intended to solve enterprise problems such as anti-counterfeiting and cold-chain logistics. To learn more, check out our article VeChain Explained or our VeChain in a Nutshell video below.
ToolChain is VeChain’s latest product. It was announced at the VeChain Summit 2019 (Click here for a recap).
ToolChain hardware kit displayed at VeChain Summit 2019
ToolChain is a kit containing all the necessary hardware, software and service protocols to onboard a business onto the VeChainThor blockchain.
There are 3 Versions of the ToolChain kit: Standard, Developer and Channel Partner. This is so that businesses with any levels of technical capability can use VeChain’s technology.
Standard Version
The Standard Version provides standarized application modules, tools and Internet of Things (IoT) devices. It was designed for MSMEs without the capability to develop their own blockchain-based lifecycle management solution. Businesses can be onboarded onto the VeChainThor blockchain within 30 minutes.
Developer Version
The Developer Version is designed for enterprise customers with stronger technical capabilities. It will allow enterprises to develop various applications based on the VeChainThor blockchain tailored to their needs.
Channel Partner Version
Channel Partners will be able to have independent deployment and multi-dimensional customisation of ToolChain.
VeChain ToolChain at a glance
The ToolChain hardware kit contains:
QR code printer and application software to print QR codes.
NFC writer and software to create digital labels on NFC tags.
IoT devices, RFID chips and sensor devices
Handheld terminal devices which will enable ToolChain apps to bond and activate NFC chips, and transfer the data on them.
In terms of software:
ToolChain Admin Center: this app is a command centre. One of its features is that business owners can use this software to configure NFC and/or RFID chips. The Company can ship these NFC and/or RFID chips directly to businesses.
VeChain Work App: this app allows business owners or third party manufacturers to “bind” the physical product to the NFC/RFID chip. To learn more about this app, check out Bsc44’s article here.
VeChain Pro app: this app is already available to download. It will be pre-loaded onto the NFC scanner. It allows anyone to view the entire story of the product including proof of authenticity and origin.
Description of the ToolChain kit components
Examples of VeChain ToolChain in use
One of ToolChain’s notable users is SBTG Surplus & Co., a custom sneaker artist. SBTG uses NFC chips embedded into its limited edition sneakers. Customers can verify the sneakers’ authenticity, origin and other information by scanning them with the VeChain Pro app.
Best use of blockchain is real life use 🤩 – with @vechainofficial's help, these sneakers are impossible to counterfeit. An NFC tag is sewn into the shoe with a private key that's recorded on Vechain's Blockchain. $VET Now if only they have it in my size….😱😱😱😱 pic.twitter.com/NgFuZrsq5c
SBTG have recently partnered with Adidas and HBO Asia to produce limited edition Game of Thrones sneakers. These sneakers are powered with VeChain Technology.
SBTG x Game of Thrones sneakers with VeChain RFID chips
Problems with authenticity and quality assurance
MSMEs generally lack technical or financial resources. Hence they have difficulty in ensuring their products’ authenticity and quality. They are also vulnerable towards counterfeiters and bad actors in the supply chain. This in turn could seriously damage their reputation.
Even for products from larger corporations, product authenticity and quality assurance is not transparent. We as consumers do not have easy access to information on the supply chain of our products.
Consumers still rely on outdated authentication methods. This is true even for expensive luxury items. As an example, for luxury watches we would compare an items’ appearance or check its serial number. Meanwhile there are official databases of serial numbers. The numbers are only etched onto the watch and counterfeiters can easily copy this.
Thus, authenticating a luxury watch requires significant expertise and experience. Whilst counterfeiters are always trying to make their watches look more authentic.
Can VeChain ToolChain bring mass adoption through MSMEs?
ToolChain can be a simple and cost effective supply chain management solution for MSMEs. ToolChain could finally give MSMEs the same ability as large corporations to ensure product quality.
As mentioned above, most of the world’s businesses are MSMEs. ToolChain could finally bring blockchain to a substantial but overlooked group
Moreover, customers will be able to scan the NFC/RFID chip embedded into the product and see information pertaining to their exact item.
If you want to learn more about VeChain, check out our guide, VeChain explained.
Want to find out more interesting happenings at the VeChain Summit? Check out these videos below!
https://www.youtube.com/watch?v=ZRBuQ96ikPc
Check out our livestream with VeChain’s with Sunny Lu (CEO) and Kevin (COO), and Patrick from Plair
And don’t forget to check out our post VeChain Summit recap video!
Mass adoption is starting through…milk?
On 18th May 2019, VeChain announced that its enterprise partner, Bright Food (Group) Co., Ltd (“Bright Food”) has put its “Cupids Farm” milk on their BrightCode Commodity Confidence Index Platform (“BrightCode Platform”).
Cupids Farm milk
The BrightCode Platform is a blockchain-based commercial ecosystem built upon the Partner Version of VeChain ToolChain. To learn more about the Platform, check out Oliver’s article here.
Bright Food was founded in 2006 and mainly produces milk products, sugar, wine, snacks and canned goods. Bright Food’s products can be found in over 4000 online shops in China. The Company was listed as one of the ten Chinese companies to watch in the international arena by Forbes Magazine in 2015.
When customers can scan the QR code on bottles of “Cupids Farm” milk, they will be directed to the BrightCode Platform. There, key information on the bottle of milk’s lifecycle will be available. For example information on where it was produced, videos of the diary farm, production techniques etc.
VeChain’s other partner, DNVGL will be responsible for verifying the source data and tamper proof technology. So customers can be assured that the information presented is authentic.
Information shown to customers when they scan the QR code
FREE trial now available!
You can now register for a FREE ToolChain trial account by signing up with them! Link Here!
