Boxmining v2

Category: Coin Guide

There are several thousands of cryptocurrencies out there, known also as altcoins. These coins and tokens all have their own unique features and uses, for example, some are used to help decide the direction the creator company should take, others give you discounts or access to special features. The Coin Guide is a concise summary of the aims and technology behind a certain cryptocurrencies. Insight is crucial in this field. Many projects disguise their progress through complicated jargon, making it hard to distinguish those who are building something meaningful from those who are not.

  • What is Ripple and XRP

    What is Ripple and XRP

    Ripple – Ripple Transaction Protocol is a real-time settlement system designed to be used by banks for currency exchange, remittance and gross settlement. The idea is to replace age old systems like SWIFT –  which was developed in 1972 and used by most banks today. The Ripple protocol offers significant advantages in both speed of transfer and transfer tracking. Ripple uses distributed ledger technology, similar to Bitcoin. When compared with Bitcoin, it is faster and cheaper to send on the ripple network. However, there is one significant trade-off which is its lack of decentralization. The Ripple network is closed off and cannot be joined by any user – meaning there is a significant amount of centralization.

    xCurrent Settlement between banks


    XRP – The cryptocurrency XRP is commonly confused with the Ripple Protocol (also named Ripple) issued Ripple Labs. The XRP is an issued token that uses the Ripple network – it can be sent extremely quickly and with low fees. However, it should be noted that the XRP is not required for the network to work nor is it required for banks to use it if they choose to adopt Ripple. In fact, the xCurrent communication between banks do not use XRP.

    Ripple Logo

    Ripple Currency (XRP) vs the Ripple Protocol

    So lets start off with one confusing factors. So I must make a distinction between Ripple the transaction protocol (which is used between banks and other businesses) and the ripple issued currency, XRP. When you see Ripple making gains its actually the XRP, the currency that is issued by Ripple. And this is actually quite different from the network protocol or Ripple protocol. Both share the same name and I’m sure this has definitely confused a lot of investors.

    https://youtu.be/Y1GshH0F9Ic

    Ripple Protocol

    So lets start off with the transaction network known as Ripple. So the Ripple protocol is based on technology that’s similar to blockchain but not completely the same. It doesn’t require any mining and its based on a consensus network instead of being consumer-facing which is what Bitcoin is. Basically, it’s for the everyday person.

    Ripple is exclusively used by big institutions such as banks. The whole idea of Ripple is to allow banks to transfer any sort of asset, be it currency, USD, Euro, gold, or any other asset such as airmiles. You can transfer that between other institutions near instantaneously. This rivals systems such as swift. So if you ever bought Bitcoin with bank transfer you will know how painful that is. You have to contact your bank and send the transaction to a swift bank code account and this might take up to two to three days and theres a lot of transaction fees involved for both the sender and the receiver. Ripple is set to revolutionise this by providing near instantaneous, sub-second transactions for institutions such as banks. It’s already been adopted by quite a few big banks and

    XRP – Currency of the Ripple Network (xRapid)

    So now that I explained what is the Ripple transaction protocol, let’s move on to Ripple XRP. XRP is actually issued by Ripple Labs and is a form of cryptocurrency that can be traded and it’s not “mined”. So there is a finite number of ripples and that amount is actually issued by the company behind Ripple called Ripple Labs. 

    XRP by itself has no underlying related assets or values eg. Its not tied to USD or gold. Rather, it can be used to act as an intermediate currency in institutions. It has one huge advantage in that transaction costs are very, very low (unlike Bitcoin, which is now reaching 1.5 usd in transaction fees).

    xCurrent doesn’t use XRP

    Ripple Labs have developed two different technologies aimed at solving the transfer of value between nations. Xcurrent is an enterprise technology aimed at banks that allow instantaneous transfer of value. This technology does not use the XRP currency, rather it is ledger for value transfer in the currency of the bank’s choosing. 

    Is the XRP Centralized

    XRP transactions can be confirmed very quickly because of the small number of validator nodes on the network. The XRP network is not open consensus, so only a small number of validators (~30 validators) need to communicate a transaction before it is considered “confirmed”. Proponents of XRP praise it for sub 1 second confirmation times whilst opponents point to the centralized architecture and lack of censorship-resistance. XRP transactions can be reversed and accounts can be frozen – similar to how traditional bank accounts my be frozen.

    Concerns about Ripple

    So moving on, XRP is currently only issued out at less than 40% of its total. The remaining amount (minus the 20% retained by the creators of Ripple) is held by Ripple Labs to distribute whenever and however they so wish. This is actually kind of interesting because unlike a lot of decentralized currencies, Ripple Labs plays a huge part in distributing XRP. Ripple Labs is actually a company and this is very different from Bitcoin, where Bitcoin is fully decentralized and doesn’t have a central controlling authority. Ripple Labs is registered in many countries and it could be sued and held under police custody. This is again very different from other technologies.

    So that’s a little information regarding the Ripple protocol and XRP. I’m sure this may be a little bit confusing for some people and since the technology and the currency share the same name it could be misunderstood. I hope this clarifies a little for you about what Ripple protocol is and what XRP is.

    You can buy Ripple (XRP) on Binance – https://www.binance.com/

  • Top 10 Best Ways to Keep Your Cryptocurrencies Safe

    Top 10 Best Ways to Keep Your Cryptocurrencies Safe

    In this article we give you the top 10 best ways to keep your cryptocurrencies safe.

    Cryptocurrency and Bitcoin is an exciting emerging field bringing new ways of understanding technology and value. The rewards from investing in cryptocurrencies can also be huge. Therefore, hackers and thieves are constantly stepping up their game. And when theft from a remote location is possible and tracking hackers are almost impossible, it is very easy to lose everything. Therefore, you have to always take vigilance in your hands.

    1. Understanding ownership of cryptocurrencies

    Ownership of cryptocurrencies is via holding a Private Key. Anyone with this Private Key is able to withdraw your cryptocurrencies, similar to someone knowing your PIN code for your bank account.

    With banks, if someone makes an unauthorised withdrawal from your bank account, you always can request your bank to reverse the transaction. This is not possible with cryptocurrency transactions which cannot cannot be cancelled or reversed.

    This makes it all the more important to keep your Private Key to yourself.

    Notably, many cryptocurrency holders store their cryptoassets on exchanges for trading. Some may also use online wallets for convenient storage and use. In these cases, the exchanges and wallets hold the Private Keys to your cryptocurrencies. Therefore, storing cryptocurrencies on exchanges and online wallets is essentially putting the security of your assets in the hands of third parties. Clearly, this is not something you would want to do.

    2. Be wary of phishing scams

    Phishing is malicious activity that involves deceptive emails or websites to solicit a user’s personal details. For example a phishing email disguised as a cryptocurrency exchange can direct you to a fake website and ask you to enter your login and password information.

    One way to protect yourself is obviously be wary of any emails asking for your login information or requesting you to login onto their website. Especially if you have not done anything that may trigger this e.g. requested to reset your password.

    As a good practice, you should also always check website security certificates on your email and any cryptocurrency exchanges you visit. But do note this is not 100% accurate.

    3. Protect Your PC or phone against malware

    Hackers can find ways to access your desktop wallet remotely using specialized malware. Therefore, always make sure your trading computer does not have any unknown programs.

    Antivirus programs can add an extra layer of protection.

    Some people may have phones or computers which they only use for trading or transacting with cryptocurrencies.

    4. Avoid using public Wi-Fi networks

    An additional measure to protect your computer is to avoid public Wi-Fi networks and especially accessing your cryptocurrency wallets or trading in public. These can be an avenue for foreign infiltration and theft of your cryptocurrencies.

    5. Use a hardware wallet

    Hardware wallets
    Hardware wallets

    Hardware wallets are external offline devices you can use to store your private keys and thus your cryptocurrencies. As they are offline, your cryptocurrencies will be protected against malware or viruses.

    They do cost money but it is worthwhile for the sake of the security of your cryptoassets.

    Examples of hardware wallets include the Ledger Nano X and the Trezor Model T. You can check out our Ledger Nano X review, or our Trezor Model T review for more information.

    6. Use a paper wallet (for those who are extra careful)

    Paper wallets are simply a piece of paper with your private and public keys printed on it. This paper wallet is kept in a safe location. For example, some people may store it in security deposit boxes or in a secure location at home.

    This is the safest way of keeping your cryptocurrencies safe, despite being the most rudimentary.

    7. Enable two-factor authentication (2FA)

    Google authenticator

    Two-factor authentication is when you enter 2 separate passwords to log in or to approve any withdrawals. The preferred methods are either by SMS or using Google Authenticator.

    SMS authentication is where in addition to entering your username and password, you also request an SMS be sent to you with a unique code to log in.

    However this method has been known to be vulnerable to SIM swap attacks. This is where hackers impersonate you to your telephone service provider and request a new SIM card. Therefore the requests for a SMS code will be sent directly to them.

    The preferred method for two-factor authentication is using Google Authenticator. This is where a unique string of 6 numbers are generated every 30 seconds. When logging in, you go to the Google Authenticator app and log in with the generated numbers before they expire.

    Most cryptocurrency traders enable two-factor authentication for any cryptocurrency exchanges they use, their online wallets (if any) and their email. The latter is because many cryptocurrency exchanges will send you a confirmation email to approve any withdrawals.

    8. If it’s too good to be true, it probably is

    The most common method for scammers to entice people is to feed upon people’s greed. Many scammers have websites or “exclusive” chat groups promising unreasonably high returns. These groups may require you to pay a membership fee to participate or to give them some of your cryptocurrencies so they can invest on your behalf.

    As mentioned earlier, cryptocurrency transactions are irreversible. So you are left with no recourse if you later change your mind. These scammers may also operate in different jurisdictions so you have very little chance of tracking or taking any legal action against them if their promises do not materialise.

    9. Keeping your information private

    Telling people how you store your cryptocurrencies or flaunting your wealth is the same as painting a target on your back. Whilst it is certainly wrong for hackers or scammers to steal from you, you do not want to expose yourself as a target.

    As mentioned before hackers can operate remotely. Therefore, taking a photograph of your private keys, login information or hardware wallet recovery phrase is essentially the same as posting a photograph of your credit card details online.

    Similarly, when setting up any cryptocurrency wallets or exchanges, or accessing or transacting with your cryptocurrencies, make sure you are in a safe location without any cameras around.

    10. Test send is your friend

    Cryptocurrency transactions are irreversible, so you need to be extra careful in making sure you are sending to the correct address. Here are 2 common pitfalls you will want to watch out for.

    The first pitfall is sending your cryptocurrency to an incompatible wallet. For example, you cannot send Ethereum to a Bitcoin address. Another example is for some exchanges like Binance, they have recently switched from Omni to ERC-20 for their Tether (USDT) address. So even if you are sending the same currency i.e. USDT, you need to make sure the address type is the same.

    The second pitfall is sending to the wrong address generally. Cryptocurrency addresses are long strings of digits which are case sensitive. So you should check every digit of the address before you press “send”.

    For extra security, some people may also request the recipient to send a voice message dictating the first and last few digits of the wallet address. This is to avoid hackers who have taken over either party’s devices and sent out their own wallet address instead of the recipient’s.

    Therefore to minimise losses, especially when sending large sums of cryptocurrencies, consider doing a test send with a small amount before sending the remainder of your coins.

    Conclusion

    Cryptocurrencies bring a shift in the way we hold and transact assets of substantial value. The power of being in full control of your digital assets undoubtedly comes with the duty to ensure their security. With cryptocurrencies, this duty falls squarely on the user. It may seem intimidating, but anyone can store, send and trade cryptocurrencies when armed with knowledge and exercise caution.

    With our top 10 best ways to keep your cryptocurrencies safe, you can be sure to navigate this space with confidence.

    Further reading

    Now that we’ve looked at the top 10 ways to keep your cryptocurrencies safe, we move on to cryptocurrency exchangees. Cryptocurrency exchanges are an inevitable aspect of being involved in the cryptocurrency space when we want to exchange between different types of coins. So be sure to check out our ranking of the top best cryptocurrency exchanges of 2019 here.

  • Harmony Protocol (ONE): Everything you NEED to know

    Harmony Protocol (ONE): Everything you NEED to know

    Harmony Protocol Logo

    The Harmony (ONE) protocol takes on the challenge of scaling blockchain without sacrificing decentralization. This has been the holy grail of challenges because solving scaling usually involves sacrificing decentralization – however Harmony maintains an open-consensus where anyone can join. This is achieved by:

    • Proof-of Stake – Harmony holders can participate in network consensus and improve network security
    • Deep Sharding – network is split into different teams or “shards” that work together and increase transaction efficiency
    • Network Optimized – Network communications are split into small fragments and shared (Kademlia routing)

    Harmony protocol has a sharding-based, fully scalable, secure and efficient blockchain. This means that the consensus mechanism can provide the blockchain solution necessary for the future of DApps. Even though Proof of Work networks were initially highly decentralized this element can be diluted with high usage. As such, the consensus mechanism for Harmony ensures it is still decentralized and permission-less. These are critical parts of future relevance and sustainability.

    Check out the Boxmining interview with the Co-Founder of Harmony Protocol, Nick White for an introduction to the project.

    Interview with Co-Founder Nick White

    The Competitive Scalability Field

    Providing scalability is a noble endeavor and unsurprisingly, Harmony will not be first to do it. This is because the field already features an array of running projects that also aim to provide the same solution. These rival projects include: EOS, Zilliqa, Algorand, and others. Harmony distinguishes itself by having a solid proof-of-stake system with state sharding. State sharding splits the network into teams that work together. This allows the network to grow faster as more nodes are added (rather than stay stagnant). Chains and transactions are co-ordinated by a beacon chain.

     “Neither of the projects mentioned above has a blockchain which will be performant, scalable, and as low cost as the Harmony blockchain will be.”

    Nick White, Co-founder of Harmony

    Co-founder Nick White touts the fact that Harmony has advantages over and above typical scalability projects. These are in the form of improved user experience, reduction of costs and the ability to support larger user bases for the decentralized app community. This will in turn draw more developers and projects to be a part of the Harmony project community.

    Harmony Protocol Consensus
    Harmony Protocol Consensus

    Needless to say, the target audience is not only limited to DApps developers but also established companies with greater user bases who wish to integrate blockchain technology into their products. White contends that such apps have had the problem of slow and existing networks. Harmony, on the other hand, makes their operations possible by efficient and affordable solutions.

    The Challenge of Attracting New Nodes

    Attracting new nodes to the network is definitely an issue for the network. To this matter, their Co-Founder and CEO, Stephen Tse stated as follows:

     “Harmony is building a robust ecosystem and we are in talks with every major staking as a service company to bring them on board and help grow Harmony’s validator ecosystem.”

    As such, the project has a proposal to lower the barrier for those who wish to participate in the network. This is in the form of lower resource requirements (specfically, 4GB) for new entrants. In addition, Harmony will write scripts that will make the initial setup simple as well as block rewards for staking. The economic model that underlines that is yet to be clear but stakers have the assurance of rewards for participation.

    Binance Partnership

    Binance exchange has recently announced the upcoming Harmony Protocol Initial Exchange Offering (IEO). This IEO will take place on 28th May 2019 and aims to raise funds for a project whose operation is a lot like its name. This is because the idea of providing a pertinent demand for cryptosphere, scalability, is something that can draw on collective human collaboration in the innovative platform.

    Harmony Binance Launchpad
    Harmony will be on Binance Launchpad

    The Binance IEO has been known to be a boost for its featured projects. This is because of the marketing catalyst as well as investor attraction. As such, Harmony can reach millions more with the Binance partnership. The partnership will also be in line with Harmony’s vision to provide scalability to billions across the world.

    White stated that the team has motivation from the global outlook that Binance provides. Blockchain technology has the potential to transform the lives of those both in developed and developing countries. This means that parts of Africa and Latin America, both within the scope of Harmony targets, can also achieve meaningful progress.

    With that in mind, the Binance Launchpad will take place on 28th May 2019. Notably, the process will follow the lottery format that is typical of Binance now. The token price is $0.003175 for one Harmony (ONE) token with a hardcap of US$5 million.

    Verdict

    Harmony Roadmap 2019
    Harmony Roadmap 2019

    In summary Harmony makes a solid stab at tackling blockchain scalablity whilst keeping an open consensus. The highlight of Harmony is the ability to do state sharding rather than simple transactional sharding, allowing more headroom for future scaling without congesting beacon chains.

  • Secrets of “Darkpools” and unreported trade volume and Bitcoin OTC

    Secrets of “Darkpools” and unreported trade volume and Bitcoin OTC

    In Crypto, not all trade volumes are visible – in fact “Darkpools” account for a huge amount of crypto trading and has an enormous impact on cryptocurrency prices. Darkpools include peer-to-peer trading, such as on sites like localbitcoins.com and also Over the Counter (OTC) desks. The reason why it’s unreported is because deals are done privately, for example Peer-to-peer trading can be done in person and with cash, leaving virtually no trace of the transaction ever happening. Large volumes are also traded OTC – this is more organised as private buyers and sellers are matched, with some form of escrow to allow the transaction to take place. OTC desk sometimes even require minimum volumes, like $100,000+ USD to up to 1 Million.

    First things first. What’s an Over the Counter (OTC) desk?

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

    The trading of cryptocurrencies on OTC desks is similar to those in traditional markets.

    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.

    What does a trader at an OTC desk do?

    Traders at OTC desks are the broker-dealers mentioned above. Their role is to locate and match buyers and sellers, and negotiate the best deal for all the parties involved.

    Part 1: Crypto trading/ Market Manipulation/ OTC Markets

    Therefore, it is important for traders at OTC desks to have a keen eye on the cryptocurrency markets and be knowledgable of the market trends.

    I had the opportunity to interview Charles Yang, Head Trader at Genesis Block Hong Kong, an OTC desk. In my interviews we discuss what’s really happening at OTC desks away from the public eye. We also discuss his thoughts on the market sentiment.


    Is Tether Safe? Will Bitcoin & Ethereum Recover? 

    Secrets and Insights from an OTC Trader

    Here’s a summary of the key points from the interviews with Charles.

    There is still interest in cryptocurrencies

    Charles observes there is revived interest in cryptocurrencies despite this bear market.

    He notes that a lot of the customers from the OTC desk who were previously dormant have recently contacted them wanting to buy and sell cryptocurrencies.

    The risk of Tether is exaggerated

    Firstly, what is Tether? Refresh your memory with our Tether Explained guide below:

    We’ve seen in recent news that USDT is not fully backed by cash. Instead, Tether is around 75% backed by cash, and the remaining 25% by other securities or loans.

    Confused with what’s happening in this Tether scandal? Check out our video below which explains what is happening and the latest legal action surrounding Bitfinex.

    Despite this, there is still demand for USDT in Asian countries such as China, where they are buying USDT at a premium.

    This is because China bans cryptocurrency exchanges, so retail investors cannot buy cryptocurrencies such as BTC. What they do instead is they first buy USDT through peer to peer merchants, and then enter the cryptocurrency market at a later time when conditions are right. 

    Right now, Bitfinex who is being accused of “losing” customers funds is more at risk. Bitfinex will have to go bust first before people question USDT.

    Charles believes that fundamentally short trading would have less losses because if USDT is at 97% and your prediction is wrong, then your loss would only be 3%. Whereas the opposite would be to bet that it goes to 0.

    Mining is still profitable

    The recent “official news” in China was that cryptocurrency mining has been banned.

    Despite this ban, Bitmain is coming up with new models and generally summer is big for mining because electric costs falls.

    There may be miners who start accumulating and building to maximize their margins 

    Charles notes there is news that big players are scrambling to get cheap damaged mining rigs. They are not the newest models but there are still returns from using them to mine cryptocurrencies.

    So despite the official news about China banning mining the word on the street is that people are buying rigs and locking in contracts for the summer months.

    Simple guide to the aftermath of the Chinese Bitcoin mining ban

    Initial Exchange Offerings (IEOs) are risky, but need not be avoided completely

    If you participate and get allocation you would benefit. But ultimately it is the exchanges that benefit because you need to buy their token to participate.

    For example Binance requires you to buy into IEOs with their BNB token. Of course it’ll be great for you in the short term if you get allocation and the coin pumps. However your risk is that you would be left with the exchange token if you don’t manage to get any allocation after the lottery.

    IEOs are also highly volatile, especially immediately after listing

    It may be better to trade with OTC desks than exchanges

    Charles notices that there is quieter trade flow, so big players looking to buy or sell cryptocurrencies need to offer better prices. Therefore the margin between the buy and sell price is much less. Bigger players also can offer better quotes because of volume. Therefore it may be cheaper to trade with OTCs who deal exclusively with larger orders than exchanges.

    And whilst exchanges require you to have the funds ready at the time of transaction, OTC desks allow you to lock in the prices and settle later. This gives people more flexibility .

    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. On the other hand you can conduct trades privately compared to on exchanges.

    What coins to hold? Bitcoin Bitcoin Bitcoin (BTC)

    Unlike other coins, Bitcoin (BTC) has a 10 year history. There is no founding team or leader. For this reason it is not affected by company politics and is the most decentralised.

    We can see the prices for a lot of tokens crash during the Initial Coin Offering (ICO) crash. Some may be due to the project running out of funds, failing to deliver on its promises or in worse cases the founders and key personnel leaving the project altogether. Studies were shown that over 80% of ICOs in 2017 were scams.

    I was standing in the same spot glued to my phone for 2 hours when this all went down.

    We also see that the ICO game was not fair, some people were able to purchase tokens for a more favourable rate or terms even before the token was listed to the public. This however would never happen with BTC.

    Is day trading profitable? No (sorry)

    For retail investors, day trading is not profitable even for traditional markets.

    This is because retail investors would be bogged down by trading fees, but not all trades are profitable.

    Retail investors are also unprotected from market manipulation. This is especially true for cryptocurrency investing, which is generally an unregulated space.

    Don’t do this

    Conclusion

    Ultimately, trading cryptocurrencies requires exercising caution and doing your own research. One can look at OTC desk reports to have a good grasp of what may be quietly happening with some big players, but at the end of the day, question everything. Also, whilst you may stand to gain several times your initial investment by going into highly volatile IEOs, bear in mind it is designed so that exchanges ultimately win. The most prudent thing to do is to never invest more than you can lose.

    Links

    Buy Bitcoin in Hong Kong – https://buybitcoinhongkong.com/

  • MimbleWimble complete Beginner’s Guide

    MimbleWimble complete Beginner’s Guide

    What is MimbleWimble

    While earlier blockchains such as Bitcoin did not account for privacy and scalability, new projects are addressing these very issues. One of the most revolutionary protocols right now is MimbleWimble. The protocol is gaining traction because of its ability to address privacy, scalability and fungibility. Currently coins that use this technology are Grin, Beam, Epic Cash and Litecoin is starting sidechain development.

    Why is Privacy important? Currently, when you use Bitcoin, that is, to send bitcoin, the receiver can extract unrelated transactional information. Because of this splitting transparency concession, privacy coins like Monero are increasingly becoming more popular thanks to their transaction obfuscating ability.

    MimbleWimble’s History

    The whitepaper for MimbleWimble was first published by Tom Elvis Jedusor, an alias name referenced from Harry Potter, in June 2016 but the mainnet is now live. What Elvis proposed was hiding senders and receivers addresses as well as the amount. This not only ensured privacy but also reduced block size to allow for more direct and efficient transactions while making the platform more scalable. Because of their proposal, Mimble Wimble’s white paper is popular with privacy coins enthusiasts.

    How does MimbleWimble Works

    MimbleWimble (MW) ensures that with all transactions, there are no addresses from where the amount is coming from and to whom it is going to. Furthermore, it hides the amount being transacted. Transactions are trivially aggregated to hide where a newly created transaction comes from. The transaction is relayed privately among peers before becoming public.

    Without an address it becomes impossible for any user to track a transaction. With other cryptocurrencies, to send or receive transactions, one must have an address. This addresses act as tags making it possible for the public to tack transactions, with MimbleWimble, this simply doesn’t exist because the address (tag) isn’t there.

    To hide transaction amounts, MimbleWimble has used EllipticCurve Cryptography (ECC) creating the underlying structure to eliminate inputs and outputs data. This essentially takes out your signature from transactions by combining the signature of the sender and the receiver to create a private address.

    However, using confidential transaction, the amount being transferred remains visible to the participants of the transaction.

    MimbleWimble goes further ensuring that not even your IP can be traced. If you send or receive amounts with a phone or laptop regularly, this phone or laptop can be identified and traced back to you. However, with a new privacy layer in the MimbleWimble protocol, there’s extra security preventing tracking.

    Grin’s Advantage over Other Privacy Coins

    By comparing it to one of the biggest privacy coins, Monero, it’s clear that Grin—which uses MW, is superior. Whereas Monero creates dummy transactions to hide the real transaction via ring signatures, Grin employ transactional output, a technique that makes it hard for UTXO tracking as well as cut-through transaction via Coinjoin to merge old transactions.

    Clearly, what Mimble Wimble brings to the fore is a technological breakthrough that has great implication for the entire ecosystem that would even changehow transactions are done. Its implementation means cryptocurrencies like Bitcoinwould be used on a day to day basis without compromise of privacy, scalability and fungibility via a simple hard fork.

    How to mine MimbleWimble Coins

    MimbleWimble coins can be mined using GPU and CPU hardware. To find out how to mine Epic Cash, check out our full Epic Cash Mining guide.

  • Mithril (MITH) Overview

    Mithril (MITH) Overview

    Mithril aims to disrupt our perceptions on social media- to decentralize and reward social media content creators fairly and openly. 

    For a long time, content creators have not been earning for firing up their creative juices. Their followers have also been left dry after interacting with content. But this is now in the past since the launch of Mithril, a platform employing blockchain technology with content creators and their followers in mind. 

    The team behind Mithril comprises of top minds like Wilson Huang who is a former software engineer at Yahoo and Jeffry Huang, the former chairman of M17 Entertainment. 

    Since its launched in 2018, the decentralized social media platform has already made notable milestones. For example, it has secured a partnership with PiePie, a social platform where content creators can earn MITH tokens (more on this shortly). 

    Mithril does this through “social mining”. Unlike other social media platforms such as Facebook and Instagram, Mithril rewards users for their content according to the popularity it attracts. 

    What makes the Mithril ecosystem 

    The Mithril ecosystem is made of the MITH token, Lit, and the Mithril Vault which are intertwined to bring a comprehensive experience to content creators. 

    The MITH token (MITH) is the platform’s native token and which is used to reward publishers in a process called Social Mining (more on Social Mining later). The token is built using the ERC-20 standard on the Ethereum blockchain. It can be used to purchase goods and services on the Mithril Merchant Network, or it can be traded for other digital currencies. Apart from being used for payment and Social Mining, MITH can also be used for staking.  

    Lit, on the other hand, is an already developed social media app that is available to those using iOS or Android-powered mobile devices. Just as with other top social media apps like Facebook, Lit can be used for messaging and posting personal stories using the ‘stories’ feature. 

    The third core component of Mithril is the Mithril Vault, a secure virtual wallet for the MITH tokens. 

    Key Features Of Mithril

    Social Mining

    Though their mobile app- Piepie (available on iOS and Andriod), users can post 6 second videos and share it with over 154,000 (and growing!) other users globally who can follow, like or comment on them. 

    Users who post on Piepie will be rewarded with Mithril’s (MITH) tokens.

    Mithril recently expanded their ecosystem by partnering with Yeemos (available on iOS and Andriod). Yeemos is an app where users can post photographs. Other users can then interact with the posts by doodling, posting stickers, emojis, reactions or comments on them.

    Yeemos is expected to support the MITH reward system soon.

    Mithril Vault

    Users can link their Piepie (and eventually Yeemos) accounts to the Mithril Vault. The Mithril Vault has several functions:

    Funds: Users can withdraw and/or deposit their MITH, Binance (BNB) and Ethereum (ETH) tokens. Support for more tokens is expected.

    Staking: Users can “stake” some/all of their MITH for a minimum of 14 days. Staking increases the amount of MITH earned when using Piepie.

    Shift: Users can “shift” their MITH to ETH and vice versa.

    Exchanges

    MITH tokens are currently traded on most major exchanges including Binance, Bitfinex, Bithumb, Lbank, OKEx and HitBT etc.

    Uses for MITH Token

    The MITH token can be used as follows:

    Staking: As mentioned above, MITH can be staked in the Mithril Vault to increase the MITH earned from social mining on Piepie.

    Shifting: Also as mentioned above, the MITH Vault allows users to shift their MITH into ETH.

    Payments: MITH is accepted as a form of payment in the Mithril Merchant Network. For now this includes some Taiwanese cafes and merchants. Globally, MITH can be used to pay for other products/services relating to dating apps, paid content and other applications.

    The Mithril roadmap

    Mithril has been hard at work meeting its milestones, and in some cases ahead of schedule.

    For Mithril, the milestones covered form the footing for a bright future ahead. While the future will be comfortable for Mithril network users, the developers have already rolled their sleeves up. 

    For instance, the team behind Mithril is yet to develop an ad network, conduct a vault merchant network onboarding, among other high profile developments. 

    Those already partnering with Mithril include, Qtum, M17 Entertainment, Swag, SOLA Foundation, bytepay, Simple Swap, Atomic, among others. 

    In short, Mithril has just left the runway. 

    Resources:

    Website: https://mith.io/

    Whitepaper: https://mith.io/whitepaper.pdf

    Blog: https://medium.com/mithriltoken

    Telegram: https://t.me/MithrilChat

    Twitter: https://twitter.com/MithrilToken

    Binance research report: https://info.binance.com/en/research/MITH-2018-11-15-46831.html

  • Elastos Explained – what’s a decentralized internet

    Elastos Explained – what’s a decentralized internet

    Elastos is a third generation technology that leverages blockchain technology in giving internet users complete control over their digital properties. The protection that Elastos provide is beyond cryptocurrencies or private data. It covers other intellectual properties such as books, games, movies, and business ideas.

    Elastos is a new Internet technology that is revolutionizing online security and smart technology. Elastos is built on the concept of removing middleman, monetizing computing power, protecting digital assets and offering incentivised digital properties transactions with enhanced security and speed at an affordable cost.

    How does Elastos work?

    Elastos operates in an isolated environment called a virtual machine that runs on elastos runtime. Its is a lightweight operating system kept in a little box. To penetrate the system, an attacker has to create their own box and connect to the user’s data.

    If hackers manage to breach the security, Elastos does not grant Internet access so the information derived cannot be sent out or uploaded to the third-party websites like YouTube, Facebook or Dropbox.

    Alternatively, the hacker may try to download it to external storage, but elastos requires that the owners of the data grant permission from their end. Therefore unless the owners voluntarily share their digital assets, hackers cannot take possession of it giving owners exclusive protection over the data they secure with elastos.

    In another instance, assuming the hackers try to connect another virtual machine like engineering artificial intelligence (AI) scanner, it can only scan and check the data, but it is not transferable as it is an isolated device. The information cannot be passed on to the outside world.

    In another real-life instance, assuming you have a session with your doctor and he connects to your virtual machine, he can only read your medical report but will not be able to save a copy. It is also imperative to the point that the moment you close your Elastos machine, the information viewed by the doctor will be permanently erased guaranteeing you topmost security.

    The Blockchain Technology Behind Elastos

    Now that we know how Elastos works, it is possible for readers to conclude that Elastos does not need a blockchain technology to function in reality, the blockchain provides the secure ID to access Elastos.
    In a case where a hacker tries to override the user’s security, it is the blockchain that will be responsible for the assurance that the ID is authentic, not tampered with, void of virus and malware, and perfectly matches with the one registered in the block.

    Blockchain provides a layer of trust for all the virtual machines that want to connect to a system.

    Real Life Application of Elastos

    Business and Enterprise

    It helps businesses and enterprises to protect the trade secrets, for instance, Coca-Cola can use it to store their recipe menu which will not be available to anyone without their permission

    Professionals

    To safeguard valuable private data and ensure that only people with permission can access the information stored on it

    Content Creators

    Authors, content creators, movies and game developers can leverage the use of elastos in securing the ownership of their intellectual properties. With that, they can scale up their earnings and prevent illegal distributions of their contents to unauthorized users.

    Also, the content owners can use elastos to create a scarcity of their digital asset thereby increasing its value.

    Developers

    Elastos provides large blockchain applications in a secure environment and keeps contents intact after multiple uses

    Ethereum vs. Elastos

    Ethereum operates on a single main chain structure leading to speed limitation while elastos adopts main chain and side chain structure that speeds up the transaction, payment and smart contract support for several applications and services

    Ethereum experiences network congestion and data redundancy while Elastos is the more secure runtime with the independent operating system, software development kit (SDK) that speed up the operating process and prevent data congestion.

    Ethereum exposes data to risk as it employs a front end decentralized application (DApps) while elastos make use of a safe DApps prevented from accessing the networks thus protecting data from DDos. Also, elastos doesn’t make use of IP addresses which implies that hackers cannot track users’ activities.

    Conclusion

    In conclusion, Elastos is a disruptive third generation blockchain technology that offers total protection of data and vital confidential information for an individual or a corporate body. The innovative technology will help content owners to maximize the returns on the sale of their digital assets thus making more from their intellectual properties. Elastos is a very beneficial technology that every user of the internet should have in their possession to create a more secure internet environment for all.

  • Cryptocurrency 101 – the Basics

    Cryptocurrency 101 – the Basics

    One way to describe cryptocurrency is that it is simply a digital cash system without a central entity. To realize digital cash you need a payment system with accounts, balances, and transactions. One major problem payment networks have to prevent is double spending: to prevent that one individual who spends the same amount twice. This is usually done by a central authority or body who keeps a record about the balances.

    In a decentralized system, there is no one person that is responsible for this. Every single part of the network has to fulfill this function. Every part needs to have a list with all transactions to check if future transactions are valid.

    Cryptocurrency and the blockchain

    Cryptocurrencies are also simply just limited entries in a database no one can change without fulfilling specific conditions. If you think about it, that can also be used to describe our current monetary system. Money in your bank account is basically entries in a database that can only be changed under specific conditions.

    Confirmation of transactions is a critical concept in cryptocurrencies. As long as something is unconfirmed, it leaves it open to forgery or falsification. When a transaction is recorded onto the blockchain, it can no longer be changed and it can’t be reversed.

    Peers in the network, or as they have come to be known, miners, can confirm transactions. They take transactions, stamp them as legit and spread them in the network. After a transaction is confirmed by a miner, every node has to add it to its database. It has become part of the blockchain.

    Cryptocurrency has derived its namesake from the strong cryptography process used to secure its consensus-keeping system. Cryptocurrencies are built on cryptography. They are not secured by people or by trust, but by math.

    Properties of Cryptocurrency

    Most cryptocurrencies share a common set of properties, but not all rules are set in stone. Some may focus more on privacy, while others boast faster transaction speeds of lower costs. Below are some of the more common characteristics you will find cryptocurrencies.

    • Transactions cannot be reversed – when your bitcoins are sent, there’s no getting them back, unless the recipient returns them to you. They’re gone forever. This makes it difficult to commit the kind of fraud that we often see with credit cards, in which people make a purchase and then contact the credit card company to make a chargeback, effectively reversing the transaction.
    • Decentralized – there is no central authority controlling it and that means goverments cant take it away from you.
    • Low cost – compared to bank transfers or international transfers, the fees are a lot lower.
    • Speedy – you can send money anywhere and it will arrive minutes later, as soon as the network processes the payment.
    • Secure and transparent – because all the transaction information is stored on the blockchain, people cannot trick or deceive you about what funds they have. Cryptocurrency funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency.
    • Pseudonymous – Neither transactions nor accounts are connected to real world identities.While it is usually possible to analyze the transaction flow, it is not necessarily possible to connect the real world identity of users with those addresses.
    • Store of value – Most cryptocurrencies have a limit to the supply of tokens that can be mined or created. Because of this controlled supply, there are no risks of inflation unlike fiat currencies where new money can suddenly be printed.
  • Blockchain Security: Hodlers Should Learn More About It

    Blockchain Security: Hodlers Should Learn More About It

    A Blockchain contains digitalized transaction “block” records where each block connects to a series of all the previous and future blocks. Although experts suggest that Blockchains are impenetrable, it does not elude the fact that hackers have found ways to paralyze impregnable walls. Therefore, security concerns continue to invade peoples mind. There exist various companies offering security services such as smart contract, penetration testing, and adequate knowledge regarding Blockchains. Many professionals advice interested parties to do thorough research and learn more about cryptocurrencies before joining the community. You can rely on the numerous training videos on YouTube or attend conferences. People and companies alike also need to understand Blockchain security from all angles.

    Security

    Individual curiosity is an integral part of understanding Blockchain security. You need a clear perception of who is in charge of your investment security and how third parties play their role. Note that, your CTO is not responsible for personal data protection. His/her area of expertise lies in scientific and technological issues within the organization like code and software development. Entrust your protection to a Chief Information Security Officer (CISO) because their task is to provide adequate data and technology security.

    Their services cost a fortune but if you cannot afford one, hire a consultant to evaluate your security measures. He/she will pay attention to various areas of interests such as two-factor authentication and cyber-security employee policies. For instance, most hackers illegally penetrate corporate systems via email, instant messages, or promotion/reward links. Their aim usually entails stealing sensitive information like credit card details, passwords, and usernames. In short, everybody who uses the internet to transact is vulnerable to hackers.

    Every transaction follows a specific set of agreement for security purposes. Cryptocurrencies adopt smart contracts to control digital currency transfer through blockchain technology. The computer program eliminates the need for third parties because it digitally facilitates and negotiates terms. It is also a significant security protocol whose transactions can be tracked and reversed. Hackers operate using smart strategies like targeting both the top management and employees as well.

    Therefore, you should not solely rely on corporate protection especially if your passwords, username, and cell phone numbers are connected to your account or assets. It is extremely risky to expose your data through various devices to multiple platforms. Programmers across the world have developed security management apps like Dashlane to secure your passwords and wallets. Another alternative solution includes adopting a comprehensive multifactor authentication using launch keys. You can also apply the most recent security key development like Titan to verify login details over Bluetooth.

    The bottom line is that if you are currently in the cryptocurrency business (individually or as an organization), you are a target and so are your employees. Create different passwords for every account and enhance the verification process. Most importantly, do not trust anyone with your information and that includes private keys, passwords, username, etc. Blockchain agencies should consider training workers and extending useful solutions to hacking issues. The strategy strengthens not only personal security but also the entire corporation. Various costs are usually involved, and therefore, the relevant officers must create a budget to accommodate security changes.

    Regulations

    According to various sources, most people have yet to understand how cryptocurrencies work and their potential. Even after dominating the world news for a decade, over half the global population is unwilling to take risks. The industry is still young and expanding at best. Its high growth rate has triggered the need for regulations in various countries. Japan is among the first nations to legitimize cryptocurrencies followed by the United States. However, most governments issue notices about investing in the industry.

    The warnings pertain to risks involved especially since transacting organizations have no legal responsibilities to their clients. Some reports suggest that the electronic cash system creates a perfect atmosphere for terrorism and money laundering (due to anonymity). As such, several states have expanded laws on various criminal activities to include crypto markets. Others restrict crypto investments while nations like Nepal have banned all crypto activities altogether. In Qatar, citizens cannot operate locally, but they are at liberty to do so beyond the borders.

    Cryptocurrencies have also tapped into fundraising using Initial Coins Offering (ICO). However, most states regulate ICOs while others like China have completely banned them. Strict regulations have also discouraged people from investing, but most governments are working towards creating crypto-friendly regulatory systems that will attract investment and offer maximum protection to clients. Luxemburg and Cayman Island are among the nations that hardly view Blockchain technology as a threat. They aim to create their own cryptosystems including Venezuela and Marshall Island.

    Taxation, at its best, has yet to categorize cryptocurrencies and all its tax-worth activities. But different countries have adopted various references to regulate Blockchains by taxing them as assets, financial assets, foreign currency, income tax, etc. in the United Kingdom, crypto firms pay corporate tax, individuals pay capital gains tax, and unincorporated agencies pay income tax. The mining of cryptocurrencies is mostly affected by power taxation rules.

    The bottom line is that Blockchain security has unlimited options. Cryptocurrency companies can adopt smart contract auditing or hire consultants. (https://casadelninobilingual.com) More so, they should offer cybersecurity training to their staff and regulate internet access. Individuals, on the other hand, can maximize personal data protection through launch keys and two-factor authentication methods. Regulation-wise, governments are responsible in that, they can create crypto-friendly regulatory systems, impose the tax, or ban cryptocurrencies altogether.

  • Monero (XMR) in a Nutshell

    Monero (XMR) in a Nutshell

    Monero is a rather unique member of the cryptocurrency family thanks to its focus on privacy and absence of the traditional open blockchain network like those found on Bitcoin. It is, in a nutshell, a system that makes use of three key technologies — Ring Signature, Stealth Address and Ring CT (Confidential Transaction) — to ensure that the sender, receiver and transaction amount are concealed from view.

    On a traditional blockchain, you can freely click to see who sent any transaction, how much it was, and who the receiver is. For many this was the logical way to do things because an open book meant less suspicion of dubious activities on the network. Going into “stealth mode”, as you can choose to on some platforms, is a sure-fire way to attract raised eyebrows. Monero tried to eliminate this problem by making its transactions 100% private.

    Advantages and Disadvantages of Monero

    + Users don’t have to worry about fraudulent chargebacks or multi-day holding periods. What’s more, there are no capital controls which restrict flow for traditional currencies. The user truly is in control.

    + Protection by CryptoNote’s hashing algorithm, “CryptoNight” makes it more resistant to ASICs (but not 100% ASIC-proof). The thinking is that it would be so costly to produce an ASIC for Monero that the benefits couldn’t possibly be worth it.

    + For better or worse, privacy is more attractive to more users. Privacy has always been a hallmark of any online industry’s success. Online shopping, for instance, was never going to be a reality unless people had ways to conceal their purchase histories and keep things private.

    – On February 19th 2017, the CryptoNote currencies, including Monero, were subject to a bug that allowed for stealthy creation of an unlimited number of coins, untraceable unless the viewer, too, knew about the flaw and what to look for. Fortunately, after scanning their system, Monero found it had never been exploited using this flaw, and by February 21st the problem was patched. To be fair to Monero, they have been open and disclosed full details of the error and all measures taken to rectify it.

    – The privacy element means there are view or no wallets available for full viewing, and so it’s impossible to know about past transactions and what’s really going on in the network. It may be a pro for existing users, but for newcomers it can be a little unsettling.

    It’s clear that one of the biggest pulls of Monero is the ability to remain anonymous without the same suspicion being leveled at you on other platforms where “stealth” is optional (and only used for dodgy transactions, people think). But, after the open-ledger and dominance of more “typical” cryptocurrencies, Monero represents a radical, even revolutionary approach that has a potent allure.

    RandomX CPU mining

    RandomX is a new cryptocurrency mining algorithm designed improve the distribution of mined cryptocurrencies more evenly to a broader base of users. The idea is that everyone with a computer has a CPU, and hence an algorithm that favors the CPU will be more inclusive. Random is is designed to only function on CPUs, with strong resistance to both GPU and ASIC mining. This is achieved by making use of functions only available on modern day CPUs, such as virtualization. RandomX has already been audited and is currently deployed on Epic Cash and will be deployed on Monero.

    Monero – How does it work?

    So how does it work? Each piece of aforementioned tech is used to protect a different element of the transaction.

    The sender is protected by the “Ring Signature,” which attaches multiple names to each transaction, forming a ring around the true sender and obscuring their true identity.

    The receiver is protected by the “Stealth Address,” which sends transactions to a single-use address that will flag up as non-existent should anyone try to look into who the transaction was going to.

    The amount of each transaction is concealed by the “Ring CT,” which only shows each exchange as being more than zero and valid — that’s it!

    The conscious crypto user who wants to be anonymous for innocent reasons, but doesn’t want to arouse suspicion, will find the perfect partner in Monero. Privacy is a right, and Monero is one of the platforms offering it openly and genuinely. Not everyone agrees. Some people see universal anonymity as limiting, as it makes it impossible for new users to look into past transactions and determine if everything is kosher. There are even additional tools like their “Kovri” tool which masks IP addresses. To the experienced observer of the Bitcoin ledger, this secrecy can be rather off-putting.