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Binance pledges to ‘significantly’ increase security following $40M Bitcoin hack

Posted by on May 10, 2019 in articles, Binance, Bitcoin, blockchain, ceo, computing, cryptocurrencies, cryptocurrency, digital currencies, phishing | 0 comments

Binance has vowed to raise the quality of its security in the aftermath of a hack that saw thieves make off with over $40 million in Bitcoin from the exchange.

The company — which is widely believed to operate the world’s largest crypto exchange based on trading volumes — said today that it will “significantly revamp” its security measures, procedures and practices in response. In particular, CEO Changpeng Zhao wrote in a blog post that Binance will make “significant changes to the API, 2FA, and withdrawal validation areas, which was an area exploited by hackers during this incident.”

Speaking on a livestream following the disclosure of the hack earlier this week, Zhao said the hackers had been “very patient” and, in addition to targeting high-net-worth Binance users, he suggested that attack had used both internal and external vectors. That might well mean phishing, and that’s an area where Zhao has pledged to work on “more innovative ways” to combat threats, alongside improved KYC and better user and threat analysis.

“We are working with a dozen or so industry-leading security expert teams to help improve our security as well as track down the hackers,” Zhao wrote. He added that other exchanges are helping as best they can to track and freeze the stolen assets.

The real focus must be to look forward, and in that spirit, Binance said it will soon add support for hardware-based two-factor-authentication keys as a method to log in to its site.

That’s probably long overdue and, perhaps to make up for the delay, Zhao said the company plans to give away 1,000 YubiKeys when the feature goes live. That’s a worthy gesture but, unless Binance is giving out a discount code to redeem on the website directly, security purists would likely recommend users to buy their own key to ensure it has not been tampered with.

The final notable update is when Binance will resume withdrawals and deposits, which it froze in the wake of the attack. There’s no definitive word on that yet, with Zhao suggesting that the timeframe is “early next week.”

Oh, and on that proposed Bitcoin blockchain “reorg” — which attracted a mocking reaction from many in the blockchain space — Zhao, who is also known as CZ, said he is sorry.

“It is my strong view that our constant and transparent communication is what sets us apart from the “old way of doing things”, even and especially in tough times,” he wrote defiantly, adding that he doesn’t intend to reduce his activity on Twitter — where is approaching 350,000 followers.


Source: The Tech Crunch

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Bitcoin gets slower, smaller and more like Ethereum

Posted by on Mar 11, 2019 in Bitcoin, blockchain, Blockstream, cryptocurrency, ethereum, Finance, stellar | 0 comments

Editor’s Note: Our writer Galen Moore (who previously wrote an analysis of STOs) attended the MIT Bitcoin Expo this weekend. These are his field notes on his interviews with a bunch of the leading thinkers in the Bitcoin community, along with links to the full audio if you want to go deeper. ~ Danny Crichton

The MIT Bitcoin Expo is not really about Bitcoin, per se. Many other cryptocurrencies are discussed. Sometimes, warring factions find themselves in the same room.

On the Friday night before the main event, a Boston Ethereum developers group hosted a bitcoiner VC and the CEO of a private-key custody company for “a conversation on Lightning and the future of Bitcoin.”

It was a frank conversation in front of a room full of people who may have been skeptical about the future of Bitcoin. Castle Island Ventures general partner Nic Carter allowed that Bitcoin’s fixed money supply might become a liability. Jeremy Welch, CEO of Casa, acknowledged that Lightning is not going to solve all of Bitcoin’s problems.

For example, Lightning makes sending and receiving bitcoin faster, cheaper and a little more private, but questions remain as to how such Bitcoin payments will be useful.

Developing (and not developing) the future of Bitcoin

James Prestwich of Summa. Photo by Galen Moore

Carter and Welch’s conversation turned to ossification, a proposed drawdown of developer activity on Bitcoin to guard against future attacks. One Ethereum developer leaned back to ask me what ossification means. “Turning into bone,” I said. He looked a little mystified. Misunderstandings remain between followers of the two largest cryptocurrencies. Ethereum developers remain in a kind of “move fast and break things” mindset, while Bitcoin developers treat their codebase like it was software for air traffic control.

There are some who are trying to bridge the gap. James Prestwich’s consulting firm, Summa, helps Ethereum developers that want to use Bitcoin. Beyond reaching a bigger market, this has technical advantages, Prestwich said. We were drinking pineapple-strawberry Lacroix before his presentation about a better way to handle cross-chain transactions.

“Most Ethereum developers work on contracts and not consensus layer,” he said. “Contracts are not as abstracted from consensus as we like to think they are. It’s a very messy, leaky layer. The advantages here are more on the consensus layer, but that’s going to affect how your smart contract works.” The full audio of my interview with Prestwich is here and a recording of all the presentations at MIT Bitcoin Expo 2019 can be found here.


Source: The Tech Crunch

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HTC’s blockchain phone can now be purchased with fiat currency

Posted by on Feb 26, 2019 in Bitcoin, blockchain, cryptocurrency, Hardware, HTC, Mobile, mwc, mwc 2019 | 0 comments

Until now, the Exodus 1 has, fittingly, only been available for purchase with cryptocurrency. Starting today, however, interested parties will be able to pick HTC’s blockchain phone up through more traditional means, including USD, which prices the handset at a not unreasonable $699.

One assumes, of course, if you’ve got enough of an interested in purchasing a blockchain phone that they’ve already got a bit of Bitcoin, Ether or Litecoin lying about. This move, however, is very clearly about helping growing the product beyond its initial soft launch. When the device was released last year, HTC was pretty clearly expecting to sell it in limited quantities to users who could essentially help beta test the product in the wild.

HTC Decentralized Chief Officer Phil Chen calls the product the company’s 1.0 solution. In fact, it’s planning to create a formal bounty program to discover and patch potential exploits.

But HTC has long held that a device like this will play an important role in the future of a company struggling to find its way as it feels the burn of a stagnating mobile industry. As project head and Chen told me on stage at a TechCrunch event  in Shenzhen last year that HTC is “as committed as they are to the Vive. I don’t think it’s number one of the priority list, but I would say it’s number three or four.”

When I spoke to Chen again this month, just ahead of today’s Mobile World Congress announcement, he told me that HTC currently has 25 engineers committed to the project. It’s perhaps not a huge number in the grand scheme of a company the size of HTC, but it’s a sizable chunk of manpower, considering the fact that the product is mostly built using existing HTC hardware. The company has also brought in outside help like blockchain security expert Christopher Allen to make sure things are as secure as possible.

And indeed, I’ve been carrying an Exodus One around for about a week now, and it feels like a pretty standard HTC handset, both in terms of hardware and Android software, right down to the inclusion the size-squeezing Edge Sense.


Source: The Tech Crunch

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The plot to revive Mt. Gox and repay victims’ Bitcoin

Posted by on Feb 7, 2019 in Apps, Banking, Bitcoin, blockchain, Brock Pierce, coinlab, cryptocurrency, cryptocurrency exchange, Developer, Gox Rising, Lawsuit, Mt. Gox, payments, peter vessenes, Security, Startups, Sunlot, TC | 0 comments

It was the Lehman Brothers of blockchain. 850,000 Bitcoin disappeared when cryptocurrency exchange Mt. Gox imploded in 2014 after a series of hacks. The incident cemented the industry’s reputation as frighteningly insecure. Now a controversial crypto celebrity named Brock Pierce is trying to get the Mt. Gox flameout’s 24,000 victims their money back and build a new company from the ashes.

Pierce spoke to TechCrunch for the first interview about Gox Rising — his plan to reboot the Mt. Gox brand and challenge Coinbase and Binance for the title of top cryptocurrency exchange. He claims there’s around $630 million and 150,000 Bitcoin are waiting in the Mt. Gox bankruptcy trust, and Pierce wants to solve the legal and technical barriers to getting those assets distributed back to their rightful owners.

The consensus from several blockchain startup CEOs I spoke with was that the plot is “crazy”, but that it also has the potential to right one of the biggest wrongs marring the history of Bitcoin.

The Fall Of Mt. Gox

The story starts with Magic: The Gathering. Mt. Gox launched in 2006 as a place for players of the fantasy card game to trade monsters and spells before cryptocurrency came of age. The Magic: The Gathering Online eXchange wasn’t designed to safeguard huge quantities of Bitcoin from legions of hackers, but founder Jed McCaleb pivoted the site to do that in 2010. Seeking to focus on other projects, he gave 88 percent of the company to French software engineer Mark Karpeles, and kept 12 percent. By 2013, the Tokyo-based Mt. Gox had become the world’s leading cryptocurrency exchange, handling 70 percent of all Bitcoin trades. But security breaches, technology problems, and regulations were already plaguing the service.

Then everything fell apart. In February 2014, Mt. Gox halted withdrawls due to what it called a bug in Bitcoin, trapping assets in user accounts. Mt. Gox discovered that it had lost over 700,000 Bitcoins due to theft over the past few years. By the end of the month, it had suspended all trading and filed for bankruptcy protection, which would contribute to a 36 percent decline in Bitcoin’s price. It admitted that 100,000 of its own Bitcoin atop 750,000 owned by customers had been stolen.

Mt. Gox is now undergoing bankruptcy rehabilitation in Japan overseen by court-appointed trustee and veteran bankruptcy lawyer Nobuaki Kobayashi to establish a process for compensating the 24,000 victims who filed claims. There’s now 137,892 Bitcoin, 162,106 Bitcoin Cash, and some other forked coins in Mt. Gox’s holdings, along with $630 million cash from the sale of 25 percent of the Bitcoin that Kobayashi handled at a precient price point above where it is today. But five years later, creditors still haven’t been paid back. 

A Rescue Attempt

Brock Pierce, the eccentric crypto celebrity

Pierce had actually tried to acquire Mt. Gox in 2013. The child actor known from The Mighty Ducks had gone on to work with a talent management company called Digital Entertainment Network. But accusations of sex crimes led Pierce and some team members to flee the US to Spain until they were extradited back. Pierce wasn’t charged and paid roughly $21,000 to settle civil suits, but his cohorts were convicted of child molestation and child pornography.

The situation still haunts Pierce’s reputation and makes some in the industry apprehensive to be associated with him. But he managed to break into the virtual currency business, setting up World Of Warcraft gold mining farms in China. He claims to have eventually run the world’s largest exchanges for WOW Gold and Second Life Linden Dollars.

Soon Pierce was becoming a central figure in the blockchain scene. He co-founded Blockchain Capital, and eventually the EOS Alliance as well as a much-derided “crypto utopia” in Puerto Rico called Sol. His eccentric, Burning Man-influenced fashion made him easy to spot at the industry’s many conferences.

As Bitcoin and Mt. Gox rose in late 2012, Pierce tried to buy it, but “my biggest investor was Goldman Sachs. Goldman was not a fan of me buying the biggest Bitcoin exchange” due to the regulatory issues, Pierce tells me. But he also suspected the exchange was built on a shaky technical foundation that led him to stop pursuing the deal. “I thought there was a big risk factor in the Mt. Gox back-end. That was my intuition and I’m glad it was because my intuition was dead right.”

After Mt. Gox imploded, Pierce claims his investment group Sunlot Holdings successfully bought founder McCaleb’s 12 percent stake for 1 Bitcoin, though McCaleb says he didn’t receive the Bitcoin and it’s not clear if the deal went through. Pierce also claims he had a binding deal with Karpeles to buy the other 88 percent of Mt. Gox, but that Karpeles tried to pull out of the deal that remains in legal limbo.

The Supposed Villain

Sunlot has since been trying to take over the rehabilitation proceedings, but that arrangement was derailed by a lawsuit from CoinLab. That company had partnered with Mt. Gox in 2012 to run its North American operations but claimed it never received the necessary assets, and sued Mt. Gox for $75 million. Mt. Gox countersued, saying CoinLab wasn’t legally certified to run the exchange in the US and that it hadn’t returned $5.3 million in customer deposits. For a detailed account the tangle of lawsuits, check out Reuters’ deep-dive into the Mt. Gox fiasco.

CoinLab co-founder Peter Vessenes

This week, CoinLab co-founder Peter Vessenes increased the claim and is now seeking $16 billion. Pierce alleges “this is a frivolous lawsuit. He’s claiming if [the partnership with Mt. Gox] hadn’t been cancelled, CoinLab would have been Coinbase and is suing for all the value. He believes Coinbase is worth $16 billion so he should be paid $16 billion. He embezzled money from Mt. Gox, he committed a crime, and he’s trying to extort the creditors. He’s holding up the entire process hoping he’ll get a payday.” Later, Pierce reiterated that “Coinlab is the villain trying to take all the money and see creditors get nothing.” Industry sources I spoke to agreed with that characterization

Mt. Gox customers worried that they might only receive the cash equivalent of their Bitcoin according to the currency’s $483 value when Gox closed in 2014. That’s despite the rise in Bitcoin’s value rising to around 7X that today, and as high as 40X at the currency’s peak. Luckily, in June 2018 a Japanese District Court halted bankruptcy proceedings and sent Mt. Gox into civil rehabilitation which means the company’s assets would be distributed to its creditors (the users) instead of liquidated. It also declared that users would be paid back their lost Bitcoin rather than the old cash value.

The Plan For Gox Rising

Now Pierce and Sunlot are attempting another rescue of Mt. Gox’s  $1.2 billion assets. He wants to track down the remaining cryptocurrency that’s missing, have it all fairly valued, and then distribute the maximum amount to the robbed users with Mt. Gox equity shareholders including himself receiving nothing.

That’s a much better deal for creditors than if Mt. Gox paid out the undervalued sum, and then shareholders like Pierce got to keep the remaining Bitcoins or proceeds of their sale at today’s true value. “I‘ve been very blessed in my life. I did commit to giving my first billion away” Pierce notes, joking that this plan could account for the first $700 million he plans to ‘donate’.

“Like Game Of Thrones, the last season of Mt. Gox hasn’t been written” Pierce tells me, speaking in terms HBO’s Silicon Valley would be quick to parody. “What kind of ending do we want to make for it? I’m a Joseph Campbell fan so I’m obviously going to go with a hero’s journey, with a rise and a fall, and then a rise from the ashes like a phoenix.”

But to make this happen, Sunlot needs at least half of those Mt. Gox users seeking compensation, or roughly 12,000 that represent the majority of assets, to sign up to join a creditors committee. That’s where GoxRising.com comes in. The plan is to have users join the committee there so they can present a united voice to Kobayashi about how they want Mt. Gox’s assets distributed. “I think that would allow the process to move faster than it would otherise” Pierce says. “Things are on track to be resolved in the next three to five years. If [a majority of creditors sign on] this could be resolved in maybe 1 year.”

Beyond providing whatever the Mt. Gox estate pays out, Pierce wants to create a Gox Coin that gives original Mt. Gox creditors a stake in the new company. He plans to have all of Mt. Gox’s equity wiped out, including his own. Then he’ll arrange to finance and tokenize an independent foundation governed by the creditors that will seek to recover additional lost Mt. Gox assets and then distribute them pro rata to the Gox Coin holders. There are plenty of unanswered questions about the regulatory status of a Gox Coin and what holders would be entitled to, Pierce admits.

Meanwhile, Pierce is bidding to buy the intangibles of Mt. Gox, aka the brand and domain. He wants to then relaunch it as a Gox or Mt. Gox exchange that doesn’t provide custody itself for higher security. Despite the recent crypto recession with prices at multi-year lows, he believes there’s room for another exchange with a brand tied to the early heyday of Bitcoin.

“We want to offer [creditors] more than the bankruptcy trustee can do on its own” Pierce tells me. He concedes that the venture isn’t purely altruistic. “If the exchange is very successful I stand to benefit sometime down the road.” Even if the revived Mt. Gox never rises to legitimately challenge Binance, Coinbase, and other leading exchanges, Piece believes it’s all worth the effort. He concludes, “Whether we’re successful or not, I want to see the creditors made whole.” Those creditors will have to decide for themselves who to trust.


Source: The Tech Crunch

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The social layer is ironically key to Bitcoin’s security

Posted by on Jan 19, 2019 in Bitcoin, blockchain, cryptocurrency, ethereum, Security | 0 comments

A funny thing happened in the second half of 2018. At some moment, all the people active in crypto looked around and realized there weren’t very many of us. The friends we’d convinced during the last holiday season were no longer speaking to us. They had stopped checking their Coinbase accounts. The tide had gone out from the beach. Tokens and blockchains were supposed to change the world; how come nobody was using them?

In most cases, still, nobody is using them. In this respect, many crypto projects have succeeded admirably. Cryptocurrency’s appeal is understood by many as freedom from human fallibility. There is no central banker, playing politics with the money supply. There is no lawyer, overseeing the contract. Sometimes it feels like crypto developers adopted the defense mechanism of the skunk. It’s working: they are succeeding at keeping people away.

Some now acknowledge the need for human users, the so-called “social layer,” of Bitcoin and other crypto networks. That human component is still regarded as its weakest link. I’m writing to propose that crypto’s human component is its strongest link. For the builders of crypto networks, how to attract the right users is a question that should come before how to defend against attackers (aka, the wrong users). Contrary to what you might hear on Twitter, when evaluating a crypto network, the demographics and ideologies of its users do matter. They are the ultimate line of defense, and the ultimate decision-maker on direction and narrative.

What Ethereum got right

Since the collapse of The DAO, no one in crypto should be allowed to say “code is law” with a straight face. The DAO was a decentralized venture fund that boldly claimed pure governance through code, then imploded when someone found a loophole. Ethereum, a crypto protocol on which The DAO was built, erased this fiasco with a hard fork, walking back the ledger of transactions to the moment before disaster struck. Dissenters from this social-layer intervention kept going on Ethereum’s original, unforked protocol, calling it Ethereum Classic. To so-called “Bitcoin maximalists,” the DAO fork is emblematic of Ethereum’s trust-dependency, and therefore its weakness.

There’s irony, then, in maximalists’ current enthusiasm for narratives describing Bitcoin’s social-layer resiliency. The story goes: in the event of a security failure, Bitcoin’s community of developers, investors, miners and users are an ultimate layer of defense. We, Bitcoin’s community, have the option to fork the protocol—to port our investment of time, capital and computing power onto a new version of Bitcoin. It’s our collective commitment to a trust-minimized monetary system that makes Bitcoin strong. (Disclosure: I hold bitcoin and ether.)

Even this narrative implies trust—in the people who make up that crowd. Historically, Bitcoin Core developers, who maintain the Bitcoin network’s dominant client software, have also exerted influence, shaping Bitcoin’s road map and the story of its use cases. Ethereum’s flavor of minimal trust is different, having a public-facing leadership group whose word is widely imbibed. In either model, the social layer abides. When they forked away The DAO, Ethereum’s leaders had to convince a community to come along.

You can’t believe in the wisdom of the crowd and discount its ability to see through an illegitimate power grab, orchestrated from the outside. When people criticize Ethereum or Bitcoin, they are really criticizing this crowd, accusing it of a propensity to fall for false narratives.

How do you protect Bitcoin’s codebase?

In September, Bitcoin Core developers patched and disclosed a vulnerability that would have enabled an attacker to crash the Bitcoin network. That vulnerability originated in March, 2017, with Bitcoin Core 0.14. It sat there for 18 months until it was discovered.

There’s no doubt Bitcoin Core attracts some of the best and brightest developers in the world, but they are fallible and, importantly, some of them are pseudonymous. Could a state actor, working pseudonymously, produce code good enough to be accepted into Bitcoin’s protocol? Could he or she slip in another vulnerability, undetected, for later exploitation? The answer is undoubtedly yes, it is possible, and it would be naïve to believe otherwise. (I doubt Bitcoin Core developers themselves are so naïve.)

Why is it that no government has yet attempted to take down Bitcoin by exploiting such a weakness? Could it be that governments and other powerful potential attackers are, if not friendly, at least tolerant towards Bitcoin’s continued growth? There’s a strong narrative in Bitcoin culture of crypto persisting against hostility. Is that narrative even real?

The social layer is key to crypto success

Some argue that sexism and racism don’t matter to Bitcoin. They do. Bitcoin’s hodlers should think carefully about the books we recommend and the words we write and speak. If your social layer is full of assholes, your network is vulnerable. Not all hacks are technical. Societies can be hacked, too, with bad or unsecure ideas. (There are more and more numerous examples of this, outside of crypto.)

Not all white papers are as elegant as Satoshi Nakamoto’s Bitcoin white paper. Many run over 50 pages, dedicating lengthy sections to imagining various potential attacks and how the network’s internal “crypto-economic” system of incentives and penalties would render them bootless. They remind me of the vast digital fortresses my eight-year-old son constructs in Minecraft, bristling with trap doors and turrets.

I love my son (and his Minecraft creations), but the question both he and crypto developers may be forgetting to ask is, why would anyone want to enter this forbidding fortress—let alone attack it? Who will enter, bearing talents, ETH or gold? Focusing on the user isn’t yak shaving, when the user is the ultimate security defense. I’m not suggesting security should be an afterthought, but perhaps a network should be built to bring people in, rather than shut them out.

The author thanks Tadge Dryja and Emin Gün Sirer, who provided feedback that helped hone some of the ideas in this article.


Source: The Tech Crunch

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Coinstar machines will start selling Bitcoin at the grocery store

Posted by on Jan 18, 2019 in Bitcoin, bitcoin atm, coinstar, cryptocurrencies, cryptocurrency, digital currencies, TC | 0 comments

You know those machines at the grocery store that transform your gallon jugs worth of change into more usable currency? They’re about to start selling Bitcoin .

To make this impulse shopping dream come true, Coinstar, the company behind those ubiquitous change-counting kiosks, has partnered with Coinme, a startup that operates a small network of cryptocurrency-dispensing ATMs around the country.

“Coinstar is always looking for new ways to offer value to our consumers when they visit our kiosks, and Coinme’s innovative delivery mechanism along with Coinstar’s flexible platform makes it possible for consumers to easily purchase Bitcoin with cash,” Coinstar CEO Jim Gaherity said in the announcement, first reported by GeekWire.

With 20,000 machines around the world, Coinstar operates a pretty huge network that could be enabled to dispense digital currency. As the company’s announcement states, there are “thousands in the U.S. market that can be enabled to accept Bitcoin transactions” though we’d guess it won’t hit those numbers for a while.

Coinme has digital currency ATMs in 11 states, including multiple locations in Texas, Washington and California, among others. While it’s not initially clear exactly how many machines will become Bitcoin-ready, Coinme’s site also states that the partnership will result in “thousands of places to buy Bitcoin.”

The Coinstar Bitcoin locator tool wouldn’t point us to any local kiosks when we tried, but if you can track one down, buying Bitcoin from the updated machines sounds pretty easy. It’s worth noting that you’ll need cash for the exchange — you won’t be able to trade digital money or credit for cryptocurrency here.

After sticking your paper money into one of the machines, the newfangled kiosk will dispense a voucher for a Bitcoin redemption code that points you to Coinme. The limit is $2500 and you’ll need to link a phone number to the transaction, though it’s not clear if you can just make one up to get around that kind of questionable requirement.

After last year’s wild highs and painful if inevitable lows, cryptocurrency’s cool off period might be here a while — particularly if the stock market keeps everyone battening down the hatches. Given that, the kiosks would have been met with more interest during the most feverish moments of early 2018 when everyone was trying to navigate the sometimes complex process of buying their first cryptocurrency. Still, given Coinstar’s ubiquity, the Bitcoin kiosks might pique the interest of some shoppers who just cashed out thirty bucks worth of nickels.


Source: The Tech Crunch

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Atari teams up with some startup to pretend to make blockchain-based games

Posted by on Dec 18, 2018 in Apps, Bitcoin, blockchain, China, computing, cryptocurrencies, data, data management, Startups, taiwan, TC | 0 comments

Animoca Brands will produce and publish blockchain-based versions of RollerCoaster Tycoon and Goon Squad worldwide (excluding China, Hong Kong, Taiwan, and Macau); the new titles will feature the integration of non-fungible tokens (NFTs). The term of the Agreement extends through to 31 March 2022.

In honor of this exciting announcement I’d like to propose the following blockchain-based products available for license to those hunting for a quick buck:

Blockchain! The Musical
Blockchain Cereal
Blockchain Brand Kombucha
Blockchain & Me, An Alien Adventure
Blockchain Whiskey
Blockchain Soda
Blockchain The Miniseries
Blockchain Lingerie – Shake His Merkle Tree
Blockchain Brand Firestarters
Blockchain Pessaries For Her
Blockchain French Ticklers
Blockchain Getaway Cars
Blockchain Killer Apps (rumored not to exist)
Blockchain Airlines
Blockchain Margarita Mix
Blockchain Cowboy Hats
Blockchain Burgers
Blockchain Dance Studios
Blockchain Pants


Source: The Tech Crunch

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Opera brings a flurry of crypto features to its Android mobile browser

Posted by on Dec 13, 2018 in android, api, Apps, author, Bitcoin, blockchain, blockchains, coinbase, computing, cryptocurrencies, cryptocurrency, cryptokitties, decentralization, ethereum, joseph lubin, note, Software, Technology | 0 comments

Crypto markets may be down down down, but that isn’t stopping Opera’s crypto features — first released in beta in July — from rolling out to all users of its core mobile browser today as the company bids to capture the ‘decentralized internet’ flag early on.

Opera — the world’s fifth most-used browser, according to Statcounter — released the new Opera Browser for Android that includes a built-in crypto wallet for receiving and sending Bitcoin and other tokens, while it also allows for crypto-based commerce where supported. So on e-commerce sites that accept payment via Coinbase Commerce, or other payment providers, Opera users can buy using a password or even their fingerprint.

Those are the headline features that’ll get the most use in the here and now, but Opera is also talking up its support for “Web 3.0” — the so-called decentralized internet of the future based on blockchain technology.

For that, Opera has integrated the Ethereum web3 API which will allow users of the browser to access decentralized apps (dapps) based on Ethereum. There’s also token support for Cryptokitties, the once-hot collectible game that seemingly every single decentralized internet product works with in one way or another.

But, to be quite honest, there really isn’t much to see or use on Web 3.0 right now, the big bet is that there will be in the future.

Ethereum, like other cryptocurrencies, in a funk right now thanks to the bearish crypto market, but the popular refrain from developers is that low season is a good time to build. Well, Opera has just shipped the means to access Ethereum dapps, will the community respond and give people a reason to care?

Pessimism aside, this launch is notable because it has the potential to get blockchain-based tech into the daily habits of “millions” of people, Charles Hamel — Opera’s product lead for crypto — told TechCrunch over email.

While Opera can’t match the user base of Apple’s Safari or Google Chrome — both of which have the advantage of bundling a browser with a mobile OS — Opera does have a very loyal following, which makes this release one of the most impactful blockchain launches to date.

Note: The author owns a small amount of cryptocurrency. Enough to gain an understanding, not enough to change a life.


Source: The Tech Crunch

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Feds like cryptocurrencies and blockchain tech and so should antitrust agencies

Posted by on Dec 13, 2018 in author, Bitcoin, blockchain, Column, computing, cryptocurrencies, decentralization, digital rights, economy, ethereum, fed, General Data Protection Regulation, Germany, human rights, money, Privacy, St. Louis | 0 comments

While statements and position papers from most central banks were generally skeptical of cryptocurrencies, the times may be changing.

Earlier this year, the Federal Reserve of Saint Louis published a study that relates the positive effects of cryptocurrencies for privacy protection.

Even with the precipitous decline in value of Bitcoin, Ethereum and other currencies, the Federal Reserve author emphasized the new competitive offering these currencies created exactly because of the way they function, and accordingly, why they are here to stay.

And antitrust authorities should welcome cryptocurrencies and blockchain technologies for the same reason.

Fact: crypto-currencies are good for (legitimate) privacy protection

In the July article from Federal Reserve research fellow Charles M. Kahn, cryptocurrencies were held up as an exemplar of a degree of privacy protection that not even the central banks can provide to customers.

Kahn further stressed that “privacy in payments is desired not just for illegal transactions, but also for protection from malfeasance or negligence by counterparties or by the payments system provider itself.”

The act of payment engages the liability of the person who makes it. As a consequence, parties insert numerous contractual clauses to limit their liability. This creates a real issue due to the fact that some “parties to the transaction are no longer able to support the lawyers’ fees necessary to uphold the arrangement.” Smart contracts may address this issue by automating conflict resolution, but for anyone who doesn’t have access to them, crypto-currencies solve the problem differently. They make it possible to make a transaction without revealing your identity.

Above all, crypto-currencies are a reaction to fears of privacy invasion, whether by governments or big companies, according to Kahn. And indeed, following Cambridge Analytica and fake news revelations, we are hearing more and more opinions expressing concerns. The General Data Protection Regulation is set to protect private citizens, but in practice, “more and more individuals will turn to payments technologies for privacy protection in specific transactions.” In this regard, cryptocurrencies provide an alternative solution that competes directly with what the market currently offers.

Consequence: blockchain is good for competition and consumers

Indeed, cryptocurrencies may be the least among many blockchain applications. The diffusion of data among a decentralized network that is independently verified by some or all of the network’s participating stakeholders is precisely the aspect of the technology that provides privacy protection and competes with applications outside the blockchain by offering a different kind of service.

The Fed of St. Louis’ study underlines that “because privacy needs are different in type and degree, we should expect a variety of platforms to emerge for specific purposes, and we should expect continued competition between traditional and start-up providers.”

And how not to love variety? In an era where antitrust authorities are increasingly interested in consumers’ privacy, crypto-currencies (and more generally blockchains) offer a much more effective protection than antitrust law and/or the GDPR combined.

These agencies should be happy about that, but they don’t say a word about it. That silence could lead to flawed judgements, because ignoring the speed of blockchain development — and its increasingly varied use — leads to misjudge the real nature of the competitive field.

And in fact, because they ignore the existence of blockchain (applications), they tend to engage in more and more procedures where privacy is seen as an antitrust concern (see what’s happening in Germany). But blockchain is actually providing an answer to this issue ; it can’t be said accordingly that the market is failing. And without a market failure, antitrust agencies’ intervention is not legitimate.

The roles of the fed and antitrust agencies could change

This new privacy offering from blockchain technologies should also lead to changes in the role of agencies. As the Fed study stressed:

“the future of central banks and payments authorities is no longer in privacy provision but in privacy regulation, in holding the ring as different payments platforms offer solutions appropriate to different niches with different mixes of expenses and safety, and with attention to different parts of the public’s demand for privacy.”

Some constituencies may criticize the expanding role of central banks in enforcing and ensuring privacy online, but those banks would be even harder pressed if they handled the task themselves instead of trying to relinquish it to the network.

The same applies to antitrust authorities. It is not for them to judge what the business model of digital companies should be and what degree of privacy protection they should offer. Their role is to ensure that alternatives exist, here, that blockchain can be deployed without misinformed regulation to slow it down.

Perhaps antitrust agencies should be more vocal about the benefits of cryptocurrencies and blockchain and advise governments not to prevent them.

After all, if even a Fed is now pro-crypto-currencies, antitrust regulators should jump on the wagon without fear. After all, blockchain creates a new alternative by offering real privacy protections, which ultimately put more power in the hands of consumers. If antitrust agencies can’t recognize that, we will soon ask ourselves: who are they really protecting?


Source: The Tech Crunch

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Coinbase abandons its cautious approach with plan to list up to 30 new cryptocurrencies

Posted by on Dec 8, 2018 in ADA, author, Bitcoin, blockchain, brian armstrong, ceo, coinbase, cryptocurrencies, cryptocurrency, currency, digital currencies, economy, mainframe, money, note, San Francisco, Storj, TC, TechCrunch Disrupt, U.S. Securities and Exchange Commission, United States | 0 comments

Coinbase is the most conservative exchange in cryptoland, largely because it operates in the U.S. under the watchful eye of the SEC. The $8 billion-valued company trades fewer than ten cryptocurrencies to consumers but on Friday announced it announced a major expansion that could see it list up to 30 new tokens.

The company said it is considering support Ripple’s XRP, EOS — the Ethereum challenger that held a year-long ICO that raised $4 billion — Stellar, a creation from a Ripple co-founder, chat app Kik’s Kin token and more.

The full list is below:

Cardano (ADA), Aeternity (AE), Aragon (ANT), Bread Wallet (BRD), Civic (CVC), Dai (DAI), district0x (DNT), EnjinCoin (ENJ), EOS (EOS), Golem Network (GNT), IOST (IOST), Kin (KIN), Kyber Network (KNC), ChainLink (LINK), Loom Network (LOOM), Loopring (LRC), Decentraland (MANA), Mainframe (MFT), Maker (MKR), NEO (NEO), OmiseGo (OMG), Po.et (POE), QuarkChain (QKC), Augur (REP), Request Network (REQ), Status (SNT), Storj (STORJ), Stellar (XLM), XRP (XRP), Tezos (XTZ), and Zilliqa (ZIL)

The company last announced new asset explorations in July, although today it did add four new ERC tokens to its pro service.

Coinbase recently revamped its policy on new token listings. Instead of abruptly adding new assets, a process that sent their valuations spiking along with rumors of inside trading, it now goes public with its intention to “explore” the potential to list new assets in order to lower the impact of a listing. It also doesn’t guarantee which, if any, will make it through and be listed.

“Adding new assets requires significant exploratory work from both a technical and compliance standpoint, and we cannot guarantee that all the assets we are evaluating will ultimately be listed for trading,” the company said.

Support for tokens is pretty nuanced. Coinbase lists some assets on its professional service only, with just nine supported on its regular consumer-facing exchange — those are Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Zcash, USD Coin, 0x and Basic Attention Token.

The company may also introduce some tokens on a state by state basis in the U.S. in order to comply with laws.

Brian Armstrong told the audience at Disrupt San Francisco that Coinbase could list “millions” of cryptocurrencies in the future

Coinbase is looking into this glut of new tokens — some of which, it must be said, are fairly questionable as projects let alone operating with uncertain legal status — at a time when the market is down significantly from its peak in January, both in terms of trading volume and market valuations.

In recent weeks, sources at a number of top exchanges have told TechCrunch that trading-related revenues are down as much as 50 percent over recent months and, while the numbers for Coinbase aren’t clear, there’s no doubt that its revenue is taking a big hit during this ‘crypto winter.’ That makes it easy to argue that Coinbase is widening its selection to increase potential volumes and, in turn, its revenue — particularly since it just raised $300 million from investors at a massive $8 billion valuation.

Coinbase defenders, however, will argue that a greater selection has long been the plan.

Ignoring the reasons, that’s certainly true. It is well known that the company wants to massively increase the number of cryptocurrencies that it supports.

CEO Brian Armstrong said as much as our TechCrunch Disrupt event in San Francisco in October, where he sketched out the company’s plan to be the New York Stock Exchange of crypto.

“It makes sense that any company out there who has a cap table… should have their own token. Every open source project, every charity, potentially every fund or these new types of decentralized organizations [and] apps, they’re all going to have their own tokens. We want to be the bridge all over the world where people come and they take fiat currency and they can get it into these different cryptocurrencies,” he said during an on-stage interview at the event.

That tokenized future could see Coinbase host hundreds of tokens within “years” and even potentially “millions” in the future, according to Armstrong.

The company has done a lot of the groundwork to make that happen.

Coinbase bought a securities dealer earlier this year and it has taken regulatory strides to list tokenized securities in the U.S, albeit with some confusion. In addition, its VC arm has backed a startup that helps create ‘digital security tokens’ and the exchange introduced a new listing process which could potentially include a listing fee in exchange for necessary legal work.

These 30 new (potential) assets might not be the digital security tokens that Coinbase is moving to add, but the fact that the exchange is exploring so many new assets in one go shows how much wider the company’s vision is now.

The crypto community has already reacted strongly to this deluge of new assets. As you might expect, it is a mix of naive optimism from those invested in ‘under-performing’ projects (shitcoins) who think a Coinbase listing could turn everything around, and criticism from crypto watchers who voiced concern that Coinbase is throwing its prestige and support behind less-than-deserving cryptocurrencies.

Note: The author owns a small amount of cryptocurrency. Enough to gain an understanding, not enough to change a life.


Source: The Tech Crunch

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