Boxmining v2

Author: Michael Gu

  • Ask a Question to Vechain CEO Sunny Lu

    Ask a Question to Vechain CEO Sunny Lu

    Hey Vefam! I’ll be interviewing Vechain CEO Sunny Lu at 10 pm UTC +8 on Monday the 20th of July. The aim of the interview is to give an updated view of Vechain and the grand objectives. Then we’ll go into the details and ask about developments with various programs such as previous partnerships, Toolchain, and the entire ecosystem.

    What is Vechain? VeChain (or VechainThor) is a next-generation smart contract blockchain platform focused on enterprise adoption, Internet of Things (IoT), and mass adoption via Toolchain. The blockchain supports the creation of smart-contracts – self-executing contacts that have a guaranteed outcome without third party trust. This allows for the creation of decentralized applications (“Dapps”) that can solve enterprise problems such as:

    *Update: Due to popular demand, Sunny has agreed to do the interview LIVE. Event will be held at 10 pm UTC +8 on Monday the 20th of July on the following stream:

    Overall the video is for both beginners and veterans of the Vechain Ecosystem. I’d love for you guys to come up with some questions for Sunny as well. I’ll personally be giving some prizes for:

    • Most Creative Question
    • Most Insightful Question
    • Funniest / Weirdest Question

    Get FREE Tickets on EventBright: https://www.eventbrite.com/e/vechain-creating-an-enterprise-blockchain-ecosystem-tickets-113441588846

    To ask a question, leave a comment in this post below!

    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. (https://www.focolare.org)

  • Top 5 Bitcoin OTC Brokers: Efficiently trade large volumes of Bitcoin

    Top 5 Bitcoin OTC Brokers: Efficiently trade large volumes of Bitcoin

    What’s are Bitcoin Over-the-Counter (OTC) brokers?

    Over-the-counter (OTC) are entities that allow the buy and sell of large quantities of Bitcoin and other cryptocurrencies. OTCs offer more private and personalized services to institutions and high net-worth individuals who need a high degree of liquidity and privacy. The key advantage to an OTC is that they handle large trading volumes, such as trading $100,000+ USD without price slippage. OTC traders will normally quote a strike price for the entire order block with immediate execution. This is contrasted with trading on cryptocurrency exchanges where large orders will cause the price to decrease due to a lack of buy orders. OTC desks allows institutions and high net-worth individuals to buy Bitcoin without a having dedicated trading desk.

    OTC offices can be either regionally located, serving local clients or global. Often major cities such as Hong Kong, Tokyo or New York have OTC brokers servicing local clients. These brokers can provide very personalized services and even in person meetups. In contrast, global OTCs such as Binance OTC handles transactions over the internet.

    Traditionally in the stock market world, OTC desks facilitate trading of securities that are not listed on formal exchanges, e.g. the New York Stock Exchange.

    Benefits of trading via an OTC broker

    • High Liquidity – Dedicated traders from OTC desks will help increase the liquidity of the overall market. This means they can handle large order blocks
    • Fixed Price – OTC brokers will over a quotation for the entire order block. This means orders are not affected by price slippage.
    • Easy Fiat Options – Brokers will have local bank accounts and can sometimes even accept cash.

    Disadvantages of trading via an OTC broker

    • Limited range of cryptocurrencies – Often OTC brokers specialize on a few cryptocurrencies. This means unlike exchanges, they will not offer 100+ trading pairs. Instead, they will focus on the major popular cryptocurrencies that have high trading volune and interest such as Bitcoin, Ethereum or some stablecoins.
    • Manual trading process – Traders are executed by a human counter-party. This trading times will often be limited to regular office hours.
    • Large order size required – Brokers often have a minimum order size, such as $100,000 USD traded within a certain period of time.

    How do OTC Brokers work

    OTC desks have a network of buyers and sellers. The trades themselves are facilitated by OTC broker-dealer who will locate and negotiate directly with prospective buyers and sellers over computer networks or by phone. This is contrasted from trading over exchanges where the prices and order books are publicly available. For OTC desks, their broker-dealers will negotiate the trade price for you. Trades are also not publicly listed giving the parties privacy.

    Therefore, to fully understand what is going on in the cryptocurrency markets it is important to consider what is also happening at OTC desks. This is because large transactions happen on them on a daily basis.

    Bitcoin OTC vs Exchanges

    The choice of whether to use a Bitcoin OTC or Exchange depends largely on the volume of orders. Big players looking to buy or sell large quantities of cryptocurrencies are better off using an OTC broker. This is because a single exchange (no matter how large) will not have the liquidity necessary to fill large order blocks. Research has shown that sell orders of US$30 million can significantly suppress the price of a cryptocurrency, hence causing slippages of 5-10%. This amount is much larger than the fees charged by OTC brokers. The second advantage of using OTCs is that they can offer to lock in a particular quotation with the option to settle at a later time. This gives people additional flexibility to move funds from banks or cold-storage (such as the Ledger Nano X).

    However, depending on who you are, one upside or downside of OTCs is that they are not transparent. So while you can try to gauge whether there is a lot of trade flow through an OTC desk by reading their reports (if any), there is no way you can verify if they are being truthful or giving you the best price. On the other hand you can conduct trades privately compared to on exchanges and the price will be “locked-in” and not subject to any fluctuation between the time of agreement and the time of settlement.

    How to trade Bitcoin with OTC Brokers

    This guide outlines the general steps involved in trading with Over-the-Counter Brokers. Generally speaking, brokers provide similar on-boarding and trading experiences. It is important to remember all brokers will require verification of your identity, known as Know-Your-Customer (KYC) registration. On top of this, brokers will verify the source of funds to prevent money-laundering.

    Summary of how crypto is traded with an OTC broker
    Summary of how crypto is traded with an OTC broker (Image credit: Genesis Block)

    Time needed: 3 days

    How to trade with Bitcoin OTC Brokers

    1. Signup

      Sign up to the broker via website, email, call or in-person meetup. They will usually ask about the type and quantity of cryptocurrencies you would like to sell.

    2. Onboard

      Every broker will require you to fill in onboarding documents and legal disclaimers. They will also ask you to provide various types of documentation such as a Government ID, Proof of Residence and Proof of Income.

    3. Communicate

      Once on-boarded, they will give you a communications channel. Typically this involved a messaging platform where you can request quotations for orders such as:
      You: “I would like to buy 100 Bitcoin”
      Trader: “We can offer 100 BTC at a price of $8123 USD per BTC”

    4. Confirm trade

      You can choose whether to accept the price quotation or not. If you agree, the trade is immediately confirmed and the trade will provide you with a deposit address.

    5. Trade Complete

      Once the deposit is received, the order is no fully executed and you will receive your trade

    Top OTC Brokers around the world

    When trading with OTC brokers, it’s important to only use trusted and regulated brokers. This is important because of the large transaction sizes involved – you don’t want to get delayed or even scammed out of a transactions. We compiled the list of the biggest OTC brokers around the world

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    Bitcoin OTC in China and Hong Kong

    Bitcoin OTC brokers play a very important role in China due to a government ban on cryptocurrency exchanges. In China, it’s no longer legal to operate a cryptocurrency exchange due to a legislation change in 2017. This has left large Chinese exchanges and OTC desks such as OKex, Binance, Genesis Block and Huobi operating overseas or as OTC brokers.

    Currently Bitcoin OTCs brokers are legal in China. They operate by directly connecting buyers and sellers of Bitcoin. However, Chinese financial institutions such as Alibaba’s Alipay have distanced themselves from OTC transactions, stating that they will “immediately stop relevant payment services“.

    There’re several reports about @Alipay being used for bitcoin transactions. To reiterate, Alipay closely monitors over-the-counter transactions to identify irregular behavior and ensure compliance with relevant regulations.  If any transactions are identified as being related to bitcoin or other virtual currencies, @Alipay immediately stops the relevant payment services.

    AliPay official statement

    Interview with OTC Brokers

    Travel with me to Genesis Block in Hong Kong to see what’s happening with trading behind the scenes and Over the Counter (OTC).

    Vlog: Crypto Trading/ Market Manipulation/OTC Markets

    OTC money laundering and criminal activity

    One of the biggest concerns of OTC brokers and trading is the risk of exposure to criminal funds. This is because OTC desks who do not perform proper due diligence on source of funds can come into contact with tainted coins. In a 2020 report, cryptocurrency research company Chainalysis released a report on money laundering in the exchange and OTC space. The report accused some OTC desks of illegally taking laundering funds for private clients. In order to protect yourself from such activity, ensure you are trading with legitimate brokers who have proper KYC. On top of this, never buy “discounted” Bitcoins offered on social media such as Instagram or Facebook.

    Frequently Asked Questions (FAQ)

    Will OTC brokers accept cash?

    Often OTC brokers will have a cash option – for both buying and selling Bitcoin. It’s important to remember for large quantities of cash, KYC registration is required. On top of this, proof of funds may also be requested.

    Do OTC brokers require my Identity?

    To comply with anti-money laundering laws, OTC brokers will require you to submit official documentation such as Identity, Proof of address, bank account statements, proof of income or proof of funds. The type of identification required however would depend on the OTC brokers own company requirements and any information as required by the laws of the relevant jurisdiction.

    Is there a limit on how much cryptocurrency I can trade with an OTC?

    ost OTCs do not have a maximum limit on the amount of Bitcoin you can buy or sell. Order sizes of 100 or above BTC are commonplace for these brokers. However, some brokers will have a minimum order size, such as $100,000 USD.

    How do I buy Bitcoin Anonymously (Privately)?

    The best way to buy Bitcoin without a record is via cash or peer-to-peer transactions. It is important to remember this contains inherent risk as you’ll need to do your own KYC and potentially offer proof of funds in the future. You should also check that your counterparty is a legitimate trader and not a scammer as there are incidents of people being robbed during these “trades”.

    Are there OTCs for Altcoins?

    There are OTC services for altcoins and even coins that are not yet listed on exchanges. These OTCs will function similar to a matchmaker – matching sellers and buyers of a particular asset. One such example is Silverway – an OTC deal platform and deal aggregation platform.

    How do I find out the volumes handled by OTCs?

    OTCs are not obliged to provide trading data such as daily volumes, prices, or order books. However, some OTCs provide annual reports or blog posts that contain aggregated volume data.

    What should I look out for when choosing OTCs?

    Security and legitimacy are very important with thinking of which OTC desk to trade with, especially since huge sums of money are involved. Prospective customers could for example, check if the OTC desk is registered with the relevant government authorities, ask any peers if they have traded there before and their feedback, check online reviews or social media, or even go to their physical offices to make inquiries before signing up and trading.

  • Free TON Explained – A community project from the ashes of Telegram?

    Free TON Explained – A community project from the ashes of Telegram?

    Free TON (The Open Network) is a new blockchain platform created by the developers of the Telegram Open Network (also abbreviated TON). FREE TON positions itself as a community project which uses the telegram developed open source “TON OS” as virtual Operating System to run smart contracts and decentralized applications. Despite the name, Free TON is not officially affiliated with Telegram Inc nor are there any claims that it will be incorporated in the Telegram App. The project also doesn’t include Telegram CEO Pavel Durov, which is very likely an intentional move to distance themselves from the Telegram Open Network.

    Telegram Open Network
    Telegram Open Network is officially delayed until 2021

    Free TON is based on TON OS

    TON OS is designed as a decentralized operating system to handle decentralized applications. One way to imagine it is that it’s a more full-featured than the Ethereum Virtual Machine which only strictly run code. TON OS has a stack of components which can be used by developers to create powerful applications without the need to

    Built on Open Sourced Components

    Free TON is built on components that were open sourced this week. These components were originally part of the Telegram Open Network project developed by TON labs and other parties. By making these components Open Source, everyone around the can view and copy fragments of the code.

    Distribution of TONs

    Free TON will be distributed via “Giver Contracts” who are responsible for distributing TONs to 3 major groups:

    • Users
    • Validators
    • Developers

    Referral Giver be responsible for airdropping coins to initial users via a referral program. This will be the largest group, and Referral Givers will give away 85% of all TONs.

    Free TON Roadmap

    • Stage I ”Raging Bull” — Incentivized Beta Network with a Decentralized Time Bomb (DTB)
    • Stage II ”Rumble Fish” — Incentivized Beta Network with validator voting for Network Configuration
    • Stage III “Fight Club” — Decentralized Main Network, at the point where decentralization is sufficiently achieved

    TON Crystal exchange listing

    The TON crystal is the official currency of Free TON. This currency will be used to power transactions on the network (similar to Ethereum Gas) and also used native currency on the network. Currently it’s unknown if there will be any regulatory issues with listing Free TON. (Tramadol) Whilst we know developed by a similar developer pool as the TON project, it’s unknown if it will carry over any of the legal issues.

    Community is not accepting US members

    The Free TON community has a strong “No US resident” policy, where US residents cannot participate in the community nor receive any free tokens. This is likely related to the on-going legal issues between Telegram Open Network and the US SEC – where a pending lawsuit and investigation is preventing the coin from being launched. Very likely the developers behind Free TON has learnt from the previous mistakes and decided not to include US residents in any form.

    Conclusion

    Free TON is everything Telegram Open Network would be – but without Telegram. The community project aims at creating a decentralized network using all the research and development which went into the original TON (a project that was canceled due to regulatory issues).

    How do I get Free TON

    Users will get distributed Free TON via the Referral Giver method. 85% of all TON will be given away by this method

    How do I mine TON

    You cannot mine TON as it’s not using the Proof of Work consensus. Instead, there are 300 public validators that will be able to earn TON

  • Bitcoin Mining firm reporting strong profits, despite “Bitcoin halving”

    Bitcoin Mining firm reporting strong profits, despite “Bitcoin halving”

    Bitmain, the world’s leading cryptocurrency mining company, has seen a huge $300 million profit in its first four months of 2020. This greatly alleviates fears of a “collapse” in the Bitcoin mining industry caused by the Bitcoin Halving – which effectively reduced miner’s revenue by half. Bitcoin mining is a multi-billion dollar industry and is set to be one of the most profitable sectors in the cryptocurrency space. Find out more about Bitcoin mining in our guide.

    In an Industry blog, Wu Said Blockchain, first reported the news after Bitmain told their staff internally of the around $300 million profit. As a reward for their hard work, Bitmain employees received big Labour Day bonuses totaling 7,000 Yuan (around $9,900). 

    An employee inspects machines for the production of bitcoin and lightcoins. Photo: AFP
    Bitcoin Mining is a Billion dollar industry

    Quite what prompted these gains was not revealed but the reports suggested that a large part came from ventures not pertaining to cryptocurrency mining. The main area is in Artificial Intelligence (AI), a field they entered in 2018. 

    Since then, Bitmain’s AIs growth has been fast and they have launched chip designs that companies can use to power their AI systems and software. The blog post mentioned a large order of their AI chip BM1684 which was said to be worth “millions” and seemed to suggest it could account for the large profit windfall.

    That is not to say that Bitcoin mining has taken a back seat. Bitmain has also opened four new mining farms and has seen a hash rate increase in its other pools. However, the headlines following Bitmain in recent times had painted a vastly different picture of life inside the company and its economic health. 

    Bitmain’s Losses and Internal Disputes

    Earlier this year, reports came out claiming Bitmain was in serious strife and were set to lay off 50% of their staff amid concerns about Bitcoin’s May halving. The company had already cut staff in 2018 and with market share decline evident in 2019 many felt Bitmain would become a tragedy of the “crypto winter”. Performance problems from their mining rigs, like the Bitmain S17/T17 Antminer, only seemed to compound their issues.

    The most notable problem though was Bitmain’s internal conflicts between the top tier staff. The two founders and CEOs of the company, Jihan Wu and Micree Ketuan Zhan have been at loggerheads for months. 

    Leaks in early 2019 had suggested Jihan Wu was set to give up his CEO position and take a limited role in the company. Yet, in October 2019 Wu made the shocking decision of ousting his longtime partner Zhan, who was Chairman of Bitmain at the time. In an email to staff, Wu told his employees to cease all contact with Zhan and that he was back to save the company. 

    Zhan has filed two lawsuits against Bitmain and the AI subsidiary, which is called Fujian Zhanhua Intelligence Technologies. The disgruntled former senior executive is looking for a way back into Bitmain and released a statement saying: “I will fight for her [Bitmain] till the end with legal weapons. I won’t allow those who want to plot against Bitmain to succeed. If someone wants a war, we will give them one.”

    The case continues but for now it would seem that Wu has the upper hand, especially with business doing so well at Bitmain. 

  • Top 10 Blockchain Security and Smart Contract Audit Companies

    Top 10 Blockchain Security and Smart Contract Audit Companies

    We rank the top 10 performing blockchain security firms offering services such as smart contract audits, blockchain security analysis, penetration testing, formal verification, and security audits. Security audits are extremely important – this year we’re seeing the rise of Decentralized Finance (DeFi)— a new application of decentralized Blockchain technology that is poised to replace the trillion dollars Global Finance industry. However, recent events such as the dForce hack have shown us that hackers can exploit weaknesses in smart contracts and steal money. It’s almost like robbing a bank, except in this case the bank is flush with crypto AND can’t defend itself. In the case with dForce, the hacker stole $25,000,000 USD (talk about a good haul) and with crypto transactions, we know this is not reversible.

    Consequently, security solutions, tailored to the volatile nature of blockchain technology and its components, have started making moves to isolate and neutralize security threats common in the blockchain terrain. In this article, I will highlight and explore the workings of the top companies in the blockchain security niche.

    It is therefore extremely important for security audits of projects, exchanges and blockchains to be done. Users must also know what security tests have been performed and if any red flags were raised.

    Hacken

    Website: https://hacken.io/

    Hacken performs a wide range of security services for its clients. These suites of services include blockchain security consulting, web/mobile penetration testing, coordination of bug bounty programs, crypto exchange ratings, among other things. Although Hacken offers a long list of services targeted at blockchain and crypto firms, its ecosystem, however, encompasses security products ideal for IT companies as a whole. The company has built a commendable reputation as a security risk assessment for companies requiring a digital environment to create or enable services for their consumers.

    Hence, it comes as no surprise that Hacken has provided security services for non-blockchain giants like Air Asia. Furthermore, it has proven its commitment to blockchain technology by sponsoring and engaging security experts worldwide in security meetups.

    Hacken has also created the HackenAI security platform designed to protect the end user from security risks and account compromises. Key features such as Darknet monitoring immediately alerts users of compromised passwords and possible darknet attacks. HackenAI is available on Android and Iphone devices.

    Quantstamp

    Website: https://quantstamp.com/

    Quantstamp is a blockchain security startup unveiled at YCombinator W18 Batch. The security team of Quantstamp has experience in top IT companies like Google, Facebook, and Apple. And this is evident in the platform’s wide array of blockchain security tools and services. For one, Quantstamp has developed a decentralized security network for smart contract auditing. With this solution, users can perform automated smart contract security review on a “global network of decentralized security nodes.”

    Additionally, the platform provides expert security audits for clients blockchain projects and a 24/7 security monitoring software tool.

    Trail of Bits

    Website: https://www.trailofbits.com/

    Trail of Bits prides itself as a network of developers with the capabilities of identifying and fixing loopholes in software, devices, or codes. In other words, the solution provides an array of software security services that encompass smart contract audits, blockchain security research, software development, and so on. Over the years, Trail of Bits has developed formidable security tools for smart contracts. Some of these blockchain-focused solutions are Crytic, Slither, and Echidna.

    Apart from that, Trail of Bits developed the popular AlgoVPN. As well, it has a lot of security publications on GitHub, including public reports for 0x Protocol, Compound, NuCypher, and MakerDAO, which are some of its clients.

    OpenZeppelin

    Website: https://openzeppelin.com/

    The OpenZeppelin team is mostly known for its development of Solidity libraries known as OpenZeppelin Contracts. These libraries are used in most Solidity projects as a tested and standard template for contracts deployable on decentralized applications. Developers can integrate this solution through OpenZeppelin’s native SDK. Besides development, OpenZeppelin has a strong focus on smart contract security and audit services.

    Also, OpenZeppelin was one of the first teams to reinvent blockchain security by introducing elements of gamification to identify loopholes in smart contracts. Another of its products, Ethernaut, is a Web3/Solidity war game, which entails gamers to hack smart contracts to move to the next level.

    ConsenSys Diligence

    Website: https://diligence.consensys.net/

    US-based ConsenSys is one of the biggest and prominent blockchain incubators in the industry. Unlike other security firms mentioned on this list, ConsenSys dedicates its resources and technological know-how to the development of Ethereum blockchain applications and software, especially financial infrastructures. As such, its product, ConsenSys Diligence, offers security analysis for smart contracts. This audit product is at the cutting edge of sophisticated “cryptography, blockchain technology, and crypto-economic incentive analysis.”

    Another of its products, MythX, is one of the most powerful automated scanners for Ethereum smart contracts. This solution provides a robust API, which developers can use to access security analytics tools.

    Certik

    Website: https://certik.io/

    Certik is a security company looking to utilize topnotch formal verification technology in collaboration with some of the best cybersecurity experts to create end-to-end services. On its website, Certik claims that it has audited over 188,000 lines of codes and secured over $6.32 billion worth of assets. The team offers to mathematically validate the safety of smart contracts

    Therefore, it has developed Certik Chain, a public blockchain focused on leveraging Certik’s Formal Verification platform, to secure decentralized projects. Certik is officially a partner company of Binance, and it is backed by prominent investors, including Binance Labs, Lightspeed, Matrix Partners, and DHVC.

    LeastAuthority

    Website: https://leastauthority.com/

    LeastAuthority is a cybersecurity consulting firm with its main focus on privacy. It classifies itself as an enabler of private and disruptive storage solutions. At the moment, the platform has two major products available to its users. The first, Privatestorage (formerly S4), is a centralized system that provides storage infrastructure to end-users and offers them the autonomy over the collection, processing, and distribution of their private data. On the other hand, its second product, Tahoe LAFS, enables a decentralized, distributed, and fault-tolerant storage facility.

     In addition to providing different storage architectures, LeastAuthority has published security reports for Ethereum, Tezos, and others. It also works with developers throughout their development cycles to ensure that their projects are not susceptible to security threats. 

    PWC Switzerland (former Chainsecurity)

    Website: https://www.pwc.ch/en/services/risk-assurance/smart-contract-assurance.html

    Chainsecurity has joined PWC Switzerland to perform security review projects and create security solutions for the emerging blockchain industry. With this partnership, PWC Switzerland offers consultant services to blockchain projects from the exploration stage to the post-deployment stage. This platform assesses smart contract designs, tests their viability, and monitors metrics detailing their performances after deployment. It excels in its ability to combine automated analysis tools and the expertise of security professionals to identify and eliminate potential threats.

    As Chainsecurity, this blockchain team developed several security tools, including Securify and VerX. It makes sense to expect this team to continue its successful run in the blockchain security sector since it now has access to PWC Switzerland’s vast resources.

    Slowmist

    Website: https://www.slowmist.com/en/

    Slowmist is China’s leading blockchain security company. They perform extensive blockchain security services that include smart contract audits, blockchain security audits, wallet security testing, and much more. Slowmist also has a safe staking project for blockchain ecologies, which delivers real-time data on the growth and security patterns of EOS, Cosmos, Vechain, and other top blockchain projects. Another interesting bit of detail about this platform is its powerful firewall project for EOS smart contracts, named FireWall.X.

    Likewise, Slowmist is constantly tracking and publishing data and stats about security situation on crypto exchanges through their Blockchain Threat Intelligence (BTI) service. 

    Runtime Verification

    Website: https://runtimeverification.com/

    Runtime Verification is a research and development company focused on formal verification. According to the information on its website, this solution designs standard models for high-value applications and uses them as templates to develop security-sensitive products. Runtime Verification has developed two main smart contract security products. On the one hand, it offers smart contract correctness proofs with the help of the K framework to prove the viability of Ethereum and Cardano’s smart contracts. On the other, Firefly is a test coverage analysis tool for Ethereum smart contracts.

    Additionally, Runtime Verification has worked with Ethereum Foundation on building a formal framework for Ethereum 2.0 testing.

    What is the best Smart Contract Auditing Company

    Top tier smart contract auditing companies include Hacken, Trail of Bits and OpenZepplin

  • China’s Blockchain Service Network (BSN) Guide

    China’s Blockchain Service Network (BSN) Guide

    China’s Blockchain Service Network (BSN) is a national initiative designed to boost the integration and adoption of Blockchain in big businesses. China has positioned herself as a leader in Blockchain development, with 45% of all blockchain projects coming from the nation’s industries and tech giants (such as Tencent’s Blockchain Accelerator). The industry was given a huge boost in October 2018 when President Xi Jinping voiced his admiration for the technology behind cryptocurrencies. The network is set up for commercial usage and looks to provide a platform for enterprises and individuals wishing to make a blockchain application. Blockchain technologies are extremely powerful for enterprise applications as it allows for large scale data tracking with a guarantee on the authenticity of data. We’ve seen enterprise-focused Blockchain projects gain major partnerships in the past, such as Vechain’s partnership with logistics company DNV GL and auditing firms PwC.

    Xi Jinping
    President Xi personally addressed the nation on Blockchain Development in 2019

    Alongside the announcement of its digital currency electronic payment (DCEP) last month, China also launched its blockchain service network (BSN) signaling its continued shift towards a digital economy. Although it was not treated with as much fanfare, the BSN has a similar transformative effect to the DCEP and is no less important for the industry within and outside of China.

    What is China’s Blockchain Services Network (BSN)?

    The Blockchain Service Network (BSN) is a platform set up for individuals, businesses and local governments on which they can build blockchain applications. Launched on April 25th, the main target of the public network is to create a one-stop-shop for blockchain in China which supports smart city initiatives, other public networks and regions in the imminent digital economy which the People’s Republic is building. 

    The network will have two primary functions. The first is commercial and this will allow businesses/blockchain startups to use the network to develop applications, offering a public alternative to the private blockchain networks which already exist. Alongside this, the BSN will also provide a foundational consortium chain alliance for use for smart cities and digital economies. According to reports, the network will focus on openness, public utility, scalability, open-source, multi-portal, low cost and autonomy.

    The initiative will also be integral for the research into government usages for blockchain and governance. The network will also promote research in other areas and look to foster a development ecology, according to BSN alliance President Liu Yunan. 

    Liu Yunan BSN President (source:SIC.com)

    Partner Networks and Organisations

    The creation of the BSN has been done by an array of familiar faces within the tech industry. Leading the research was the Chinese government think tank, the State Information Center (SIC) whose smart city development research group the focal team. Other institutions which helped with its development include telecom company ChinaMobile and banking/payment network, China’s UnionPay. In terms of the cryptocurrency industry, exchange Huobi was a surprise inclusion in its development. 

    List of some BSN development association members (Source: CoinTelegraph)

    Technology Behind the BSN 

    The network will use a custom-built blockchain and there have been a number of companies involved in the technology’s research and implementation. The leading group in its creation is FISCO, or Financial Blockchain Shenzhen Consortium. This group includes Tencent’s digital currency wallet Webank and Cloud, Huawei, and Shenzhen Securities Communication.

    FISCO- BCOS 

    FISCO created the BCOS open-source network. Based on Ethereum’s blockchain, BCOS uses various features like zero-knowledge proofs and allows individual permissioned chains to run concurrently. 

    Tencent has played an integral role in its development, with its digital bank, Webank, providing smart contract Digital Asset Modeling Language for FISCO BCOS. 

    The network has already shown itself to be popular in its initial Beta period which began six months ago. Reports have suggested that 2,000 developers had signed up to the test period, creating blockchain applications for public welfare charity and electronic invoices. 

    Both the DCEP project and the BSN are all key structures in China’s technological plan, called the “China Standards 2035”. The document, which is set for release later this year, will plot out how the technologies will shape the next decade. 

    The BSN Beta testing

    The initial testing plan was launched in October 2019 and ended recently prior to the April launch. According to local media reports, the beta testing for commercial usage went well. Around 2,000 developers joined up with the test period, creating blockchain applications for public welfare charity and electronic invoices. Currently, the network has 128 public nodes, of which the majority come from China but a small number are overseas stretching across six continents. 

    Pilot Projects for BSN

    Huangzhou was the pilot city for the BSN

    The city which the network was tested in was Hangzhou, in Eastern China after the local government signed an agreement with the research group. According to Chinadaily, the BSN was rolled out in conjunction with Hangzhou’s City Brain platform and focussed on e-governance improvement, disinfection for hotels and more individualised technological services. The system will also be used to track local level issues such as road safety, with users encouraged to report any issues they see in the community. 

    As well as the piloting in Huangzhou, there was also a trial for a credit rating system based on blockchain that would track small and medium-sized businesses who wished to gain finance from banks.

    Blockchain in China

    Blockchain has long been a technology admired within China, typified by their leader Xi Jinping’s direct promotion of it in October 2019. Even without Xi’s comments, China has still been the leading nation for blockchain adoption with 45% of all projects coming from China according to data from the Mutual Chain Pulse Research Institute.

    Mutual Chain Research graph on number of blockchain projects by nation

    Top tech companies that have blockchain projects include, Tencent, the company behind WeChat, Alibaba, through its Ant financial team and Baidu, the internet search engine provider. 

    Provincial governments across the nation have been implementing various blockchain projects. More recently though, the shift has been more national with Blockbeats reports from May 12th claiming that the Ministry of Human Resources and Social Security of China is looking for 10 new roles with regards to blockchain, these include Blockchain Engineering Technicians and a Blockchain Application Operator.

    WIll the BSN and DCEP be linked?

    Although there is nothing concrete at the moment, it would appear that both the DCEP and BSN will be linked. Evidence for this comes from reports of Webank writing smart contract digital asset modeling language. Clearly though, both blockchain and a digital yuan are integral parts of China’s future, something which will be enshrined in writing within the China 2035 Standards document set for release later this year. The document is a fifteen-year plan for China’s development and blockchain/digital currencies will be an integral part. 

  • Bitcoin Halving Explained

    Bitcoin Halving Explained

    Bitcoin Halving is expected to happen at  12 May 2020 07:07:39 UTC

    What is the Bitcoin Halving Event?

    The Bitcoin Halving event which marks the point where Bitcoin mining rewards will be cut precisely in half. Many view this as a turning point for the price of Bitcoin because it will drastically reduce the new supply of Bitcoin, creating scarcity. Currently the Bitcoin Halving is expected to happen at 12 May 2020 11:04:30 UTC – the exact time and date may vary due to fluctuations in Bitcoin block creation time. Once the halving takes place, the amount of Bitcoin mined per day will decrease from 1,800 BTC to 900 BTC. It is important to remember this event is permanent and will affect all the Bitcoin mined in the future as well (until the next halving event). From an economics standpoint, the less Bitcoin there is being produced the more scare and less accessible Bitcoin will become.

    Check out my video on what the Bitcoin halving is, and what opportunities it can mean for Bitcoin.

    Reduced Sell Pressure on Bitcoin

    There will be substantially less sell pressure from Bitcoin miners as they’re income of Bitcoin will half. Currently, miners will mint $13 million USD worth of Bitcoin per day. This is no small figure – and one of the reasons why mining is such a trillion dollar industry (Check out our Bitcoin mining guide for how to be part of it).

    bitcoin inflation chart

    Will Miners shut down / got bankrupt?

    After the Halving, miners will receive half of their regular income. This will drastically alter the dynamics and profitability of Bitcoin Mining. For miners who are using older machines (ASICs), the drop in income might spell certain doom. Some miners will yield negative profits and be forced to retire the older less efficient units. This is a common practice in mining – renewing hardware is part of the profitability cycle for miners. This is similar to other tech hardware businesses like server farms which require annual upgrades to hardware.

    There is no risk that Bitcoin be without miners – till is still 900 BTC to be mined each day (~$7.5 Million USD). Miners will be looking to be more competitive and source cheaper and cheaper electricity. In addition, Bitcoin difficulty can drop if there is less hashrate on the network, meaning it will be easier to mine Bitcoin.

    Hype and Expectations

    The Bitcoin Halving comes with a lot of hype and optimism for the future of Bitcoin. Several memes have emerged with charts pointing to “pump” in the price of Bitcoin. The chart above shows the LOG price of Bitcoin over time, with a ascending trend indicating potential prices of $250,000 and even $2,000,000 for the price of Bitcoin. It is important to remember that with cryptocurrencies prices are high volatile and past trends don’t always indicate future trends.

    Stats

    Total Bitcoins in circulation: 18,367,900
    Total Bitcoins to ever be produced: 21,000,000
    Percentage of total Bitcoins mined: 87.47%
    Total Bitcoins left to mine: 2,632,100
    Total Bitcoins left to mine until next blockhalf: 7,100
    Bitcoin price (USD): $9,987.70
    Market capitalization (USD): $183,453,074,830.00
    Bitcoins generated per day: 1,800
    Bitcoin inflation rate per annum: 3.64%
    Bitcoin inflation rate per annum at next block halving event: 1.80%
    Bitcoin inflation per day (USD): $17,977,860
    Bitcoin inflation until next blockhalf event based on current price (USD): $70,912,670
    Bitcoin block reward (USD): $124,846.25
    Total blocks: 629,432
    Blocks until mining reward is halved: 568
    Total number of block reward halvings: 2
    Approximate block generation time: 10.00 minutes
    Approximate blocks generated per day: 144
    Difficulty: 16,104,807,485,529
    Hash rate: 117.64 Exahashes/s
    Current activated soft forks bip34,bip66,bip65,csv,segwit
    Current pending soft forks
    Next retarget period block height 631008
    Blocks to mine until next difficulty retarget 1576
    Next difficulty retarget ETA 10 days, 22 hours, 40 minutes
  • Bybit Exchange Review – Top Exchange Platform of 2020?

    Bybit Exchange Review – Top Exchange Platform of 2020?

    Bybit is a powerful cryptocurrency derivatives exchange suitable for many traders, with products such as Bitcoin Perpetual futures with leverage. The exchange offers the ability to Long or Short cryptocurrency assets, giving traders to profit from both the rise or fall of Bitcoin prices.

    Sign-up

    Bybit exchange is popular due to social media as it is frequently featured on different YouTube and Social Media Channels. The exchange offers generous signup bonuses and trading bonuses, enticing users to join the exchange for up to $90 in trading credit – but there is a catch. Bybit requires users to trade on the exchange where fees are based on the amount traded – hence trading fees can rack up to thousands of dollars (similar to other crypto derivatives exchanges). In this article we’ll look at what is derivatives tradings and features of Bybit to ultimately answer – is Bybit a good exchange

    Key Features

    • Leveraged Trading
    • Perpetual futures contract
    • Trading activities

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    What is Derivatives Trading

    The core trading product offered by ByBit is cryptocurrency derivatives trading. Derivatives are financial tools that derive value from the underlying product – in this case cryptocurrencies such as Bitcoin. ByBit exchange trades contracts based on the underlying asset instead of the asset themselves – this allows higher leverage and more types of products. Derivative products are by institutions, companies, miners and traders to gain advantage of market conditions. For example, Bitcoin miners who know they will receive Bitcoin in the future may choose to short Bitcoin at current prices to protect themselves from future price volatility.

    Derivative products allows traders to speculate on the future value of various digital assets and trade their corresponding futures. This is different from regular trading as there are “shorting” options where traders benefit from an asset falling in price (without initially owning the asset). Traders can also take averaged positions where they can drastically increase their exposure to an asset with 5, 10 or even 50x leverage.

    Bybit Popularity

    Bybit is currently the 7th most popular derivatives platform by volume. As of the 14th of April, the exchange handles $874 Million USD per day on the platform. This is a huge amount of trade volume as users can easily trade large amounts due to leveraged assets.

    Types of Derivatives Products on ByBit:

    • Futures – Futures is a type of standardized forward contract, a legal agreement to buy or sell an asset at a predetermined price.
    • Options – Options are a special form of futures contract that gives the holder the right but not the obligation to sell at a future strike price. These are common used to protect against price volatility.

    Supported countries

    Bybit Services are not available to clients located or residing in the United States, Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, Antigua or Barbuda.

    Bybit Offers and Coupons

    Bybit offers a vast amount of coupons and initial funding offers for new users. This includes a $50 dollar bonus for funding the account, along with offers for following their social media account. The exchange also offers weekly trading rewards for active traders on the exchange.

    Bybit Testnet

    You can also test transactions on the Bybit Testnet. This allows users who are unfamiliar with features to trade without using real Bitcoin.

    Bybit Controversy and Affiliate Programs

    Bybit gained notoriety due to users losing money on leveraged trades on the exchange. Leveraged trading is extremely dangerous due to the volatile nature of cryptocurrencies. It is important to remember these advanced trading tools are for advanced users only, and the risks associated with trading must be fully understood.

    Frequently Asked Questions (FAQs)

    Does Bybit Allow US traders?

    The exchange does not allow US Citizens to trade on its platform for regulatory reasons. This rule is enforced by I.P. verification, where traders with a US I.P. address will not be able to trade. It is possible to trade on the exchange without KYC (passport verification) verification.

    Does Bybit require KYC?

    Currently, Bybit does not require a passport or ID verification to trade on the exchange. There are currently no withdrawal limits. However, not completing the KYC procedures when using a cryptocurrency exchange carries risks. This is because if the exchange is hacked or it collapses, there would be no way of identifying and proving what funds you had there, which would make recovery extremely difficult, if not impossible.

    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.

  • Chinese Giant Tencent launches blockchain accelerator

    Chinese Giant Tencent launches blockchain accelerator

    Chinese tech giant Tencent has launched a Blockchain Industry accelerator and incubator program to advance the use of blockchain technology in China. Called, the “Tencent Industrial Accelerator” (腾讯区块链加速器) the program is open to only 30 blockchain startup applications. Successful projects will receive access to both funds and business partnership opportunities from Tencent. This comes as a direct response to China’s directive to spearhead the development of blockchain technologies – President Xi personally talked about the advantages of blockchain. Tencent’s entry into Blockchain is creating a lot of noise because they are known to incubate many successful breakthrough projects such as WeChat, League of Legends (Tencent is the biggest shareholder in Riot Games), and QQ. To qualify, startups must be financed for at least one round and their applications submitted before the June 6th cut off date. 

    China is a hotbed for Blockchain Development

    China has positioned herself as a leader in Blockchain development, with 45% of all blockchain projects coming from the nation. The industry was given a huge boost in October 2018 when President Xi Jinping voiced his admiration for the technology behind cryptocurrencies. China launched its blockchain service network (BSN) on April 27th, a network designed to boost the integration and adoption of Blockchain in big businesses. The network is set up for commercial usage and looks to provide a platform for enterprises and individuals wishing to make a blockchain application. Blockchain technologies are extremely powerful for enterprise applications as it allows for large scale data tracking with a guarantee on the authenticity of data. We’ve seen enterprise-focused Blockchain projects gain major partnerships in the past, such as Vechain’s partnership with logistics company DNV GL and auditing firms PwC.

    Xi Jinping
    President Xi personally called for Blockchain Development in China in 2019

    China’s Blockchain Service network is released alongside China’s National Digital Currency Electronic Payment (DCEP) Project. DCEP is a central bank national currency designed to replace paper RenMinBi (RMB) and improve the financial infrastructure in China. (Cymbalta) The project has received an official list of partners including McDonald’s and Starbucks. It is highly suggested that these projects will have a high degree of synergy, with the potential application of DCEP in Blockchain projects in China.

    Tencent is Accelerating Industrial Applications

    Projects which provide industrial blockchain solutions, data sharing applications, digital asset transactions, and supply chain financing are also encouraged to apply to the accelerator. Development areas were also highlighted, this time related to smart contract security, consensus algorithms, multi-party governance, and trusted identity and computer solutions. From the application, it would appear that Tencent is looking for projects related to various fields. The sectors which they are putting their focus on governance, education, energy, agriculture, public welfare, manufacturing, and logistics. 

    Mentoring and Opportunites

    It is not just the name recognition provided by the accelerator which would attract startups. The program also includes usage of Tencent’s blockchain as a service platform, four mentoring meetings across the year, numerous networking opportunities, and the chance to fly to a country of interest with regards to blockchain or their project. 

    Taking all these activities and experience in mind, it is no wonder the program sets you back a long way. The tuition fee is totaled at 100,000 RMB per person (14,100 USD), which is a similar figure to that of a master’s program at a US university.

    FISCO BCOS Blockchain

    The blockchain will use FISCO BCOS, an open-source protocol co-developed by Tencent, Huawei, and Shenzhen Securities Communication. Tencent has played an integral role in its development, with its digital bank, Webank, providing smart contract Digital Asset Modeling Language for FISCO BCOS. 

    The network has already shown itself to be popular in its initial Beta period which began six months ago. Reports have suggested that 2,000 developers had signed up to the test period, creating blockchain applications for public welfare charity and electronic invoices. 

    Both the DCEP project and the BSN are all key structures in China’s technological plan, called the “China Standards 2035”. The document, which is set for release later this year, will plot out how the technologies will shape the next decade. 

  • Central Bank Digital Currencies (CBDC) Explained – New Revolution for Finance?

    Central Bank Digital Currencies (CBDC) Explained – New Revolution for Finance?

    What are Central Bank Digital Currencies (CBDC) – will they mark the start of a revolution to change the financial system forever? CBDCs are digital currencies issued by central banks that function as National Currencies (fiat). They are a direct replacement of paper money, with the exact same value and issuance policies. CBDCs are state-sanctioned and governed by the monetary authority and regulatory law.

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    Banks around the world are racing to issue out Central Bank Digital Currencies (CBDC). China has already deployed the test trial for Digital Currency Electronic Payment (DCEP), a digital version of the RenMinBi based on cryptographic technology. Japan immediately countered this announcement by plans to release a Digital Yen in “2 to 3” years. One of the key motivations behind CBDC is to drastically improve the way money is transferred around the world. Instead of relying on decade-old technologies like SWIFT, Digital Currencies can be transferred directly without friction. This will drastic impacts on all levels of banking, from the m0 reserve system to the unbanked.

    Major newspaper outlets like The Guardian and the Economist began writing opinion pieces, calling the advancement from China a big step and one that could pose a threat to US economic hegemony. On the other side, commentators in China heralded their country’s fast work and implementation. Although the US and its state banks have been slow to announce any research plans and have seemingly stopped Facebook’s Libra (a privatized answer to a CBDC) in its tracks, other western nations have quickly begun research. 

    Global effort to deploy Central Bank Digital Currencies

    Earlier this year, banks from the UK, EU, Japan Canada, Switzerland, and Sweden all began joint research on a CBDC. France has announced intentions to test a pilot CBDC in 2020.

    In Asia, the Japanese immediately announced their intentions to create a CBDC to match China’s as soon as the news began to break. The Bank of Korea is also looking at its own digital currency. Smaller national banks like Thailand, the Philippines, and Singapore are also looking into creating their own. Projects such as Singapore’s Ubin work with the Monetary Authority of Singapore are already in Phase 5 of development.

    The world is moving towards CBDC and is in agreement that this will be the currency of the future. But, what makes them so special and alluring to banks and governments? 

    Digital Currencies as a weapon to combat economic change

    The main reason is its cost-effectiveness and control. CBDCs are not subject to long processing times and costly fees. As you can see from the stable coin market, sending and receiving cryptocurrencies can be done quickly and easily, with just a phone and internet connection required. Not only that, but digital currencies are far easier to track making money laundering tracking much easier. 

    Another factor is CBDC’s resilience to political or economic changes. Often citizens from emerging economies are subject to a large disparity in their currency’s health in the market when compared to exchange rates, however, stable coins rarely have major shifts. Not only that, but big banking shutdowns, like seen in Greece and Iceland might well have had a solution if they held a financial alternative to store their money. This benefit of digital currencies could well be important as the world stares recession in the face following the economic stresses of the Coronavirus effort. 

    However, there is one major detail that is propelling some nations’ research. The threat which CBDC’s pose to the US dollar domination. ChinaDaily called the People’s Bank of China’s DCEP a “functional alternative to the dollar settlement system.” This is something politicians in Beijing want as US sanctions are made effective namely due to the dollar being the reserve currency. This means often international transfers to sanctioned states are prohibited and banks shut down, as they are using the US dollar in the exchange. 

    Challenging US sanctions

    The theoretical ability of CBDC’s to circumvent US dominance is something numerous embattled nations have looked to pounce on. Other countries who hold national digital currencies include Iran- a country ravaged by US sanctions and Venezuala- a similarly hit nation. Other US adversaries that have begun research into their own CBDC include Cuba, North Korea, and Palestine.

    Clearly, the race is on between the various competing nations to launch their own digital currencies and make a new economic framework. Who will lead the charge remains to be seen, but the answer could have major consequences for the future.