Hard Forks a Threat to Cryptocurrency Stability??

After investigating 800 soft forks and hard forks from Bitcoin, Benjamin Trump, a fellow of Oak Ridge Institute for Science and Education stats that Participants in cryptocurrency networks like Bitcoin need to be better at preempting beneficial software changes. It will ensure the security and privacy of addresses and transactions and help retain the value of cryptocurrencies.

The analysis showed significant growth in some distinct blockchains curtailing from first Bitcoin software. Many of the Bitcoin forks and other altcoins could not survive beyond a few months, while others like Dogecoin, Litecoin or Vertcoin have persisted for years. Recent forks executed in year 2017-end and early 2018 have opened the gates to future forks. As per experts, hard forks in coming days would be more common with a prediction of up to 50 in 2018 alone.

SIX MYTHS OF CRYPTOCURRENCY EVERY INVESTOR SHOULD KNOW

Nexo Lending Platform Adds Bitcoin Cash Support

2017 has been a transformative year for blockchain and digital currency. As stated by coindesk – The combined market cap rocketed from $15 billion in January to over $600 billion by year’s end. While such exponential growth has acted as a barrier to fresh entrants in crypto domains, with a dip in the market, the newbies are trying to explore the opportunity and get some exposure to cryptosphere. While the hype is all around, the fresh investors might fall for misleading information easily accessible to them.

Our post would talk about some of the myths floating around and the TRUTH behind them. So let’s dive in –

Cryptocurrency is a Ponzi Scheme

When you see your news channel/subscription flashing news like –

“Alleged India Bitconnect head, Divyesh Darji, was arrested this week at an airport in Delhi as he arrived from Dubai. He and conspirators are accused of bilking millions of dollars (Rs 88,000 crore) from Indian investors seeking to find financial refuge during the government’s demonetization campaign.” Read more at news.bitcoin.com

Or

Chinese Police Arrest Hackers Behind $87 Million Cryptocurrency Theft. Read more at ccn.com.”

It might push you to think cryptocurrency is a Ponzi scheme, but its not the fault of the technology but the people who try to misuse and con you and that could happen with any technology.

Cryptocurrency, a use case of blockchain technology has been in the market and used by various verticals across the globe. Firms like Ripple are making seamless payments around the world via digital assets. So while you make up your mind to start investing, make sure to check the reliability and credibility of the firm.

Coins and Tokens are Same

Honestly, Tokens and Coins are the categories of cryptocurrency.

Coins/ Alternative cryptocurrency coins/ Altcoins

In laymen terms, they are the coins that are alternatives to Bitcoin, Ether, etc. The way an altcoin is synthesized is as follows – First, an open source blockchain, with original protocol [ may be a variant of Bitcoin or created their own blockchain like Ethereum, Ripple with new protocol]is picked up and then the underlying code is changed, resulting in a new coin or cryptocoin. Some examples of cryptocoins are – Litecoin, Peercoin, Auroracoin, etc.

Tokens

Tokens could be defined as a representation of a particular utility or asset, which need to reside on top of another blockchain. They are a representation of an asset that is tradeable and fungible, maybe commodities or loyalty points or even other cryptocurrencies.

Tokens need another platform like Omni or Ethereum to operate and exist. Tokens are created over ICO’s or initial Coin Offerings, and is necessary to fund the operating expenses to host it as a service.

Cryptocurrency is only for criminals/tax evaders

Cryptocurrency because of its nature of decentralization and anonymity may have attracted tax evaders and criminals for money laundering and drug trafficking. But they are also used by law-abiding citizens around the world. While one of the use cases of cryptocurrency is for people in underdeveloped and developing countries to enable financial inclusion, it is also helping citizens of countries where there are political and economic instability.

Crypto transactions are anonymous

The essential feature of Bitcoin and other cryptocurrency is that it is private. However, the government in the US has implemented regulations wherein exchanges have to comply with Anti Money Laundering and Know Your Customer Regulations. In the European Union, the exchange platform needs to follow guidelines issued by Financial Action Task Force (FATF), then complemented by national rules. The framework bars the subjected entities, from keeping anonymous accounts or accounts in fictitious names. In Asia as well, the Financial Action Task Force (FATF) is applied. In South Korea that is considered to be one of the biggest hubs of cryptocurrency has banned anonymous trading of cryptocurrencies and requires the entities to verify their customers appropriately.

Bitcoin is the only Cryptocurrency available

Amongst all the cryptocurrency available, Bitcoin is the most popular, backed up by strong community base, is the talk of the town and trending, hence at times mistaken as the only cryptocurrency available.

Cryptocurrency is Not Legal

Cryptocurrency is NOT ILLEGAL. However, the discussion is whether a country accepts it as an alternative to physical currency. Also, government across the globe are trying to lay down regulations to help people from misusing it.

References

Cointelegraph, citowise, masterthecrypto

August 21, 2018

Regulatory framework for ICO in Lithuania

Regulatory framework in Lithuania for ICOs

“Lithuania doesn’t have a track record of world-famous tech startups, and we didn’t have access to large VC funds. ICOs and crypto communities remove boundaries so that no matter where you are located, only the team, technology and idea matters.” – Vladas Jurkevičius, CEO of Lithuanian digital identity startup Safein.

One of the greatest things about cryptocurrency is that it gives nations a chance to compete on an even keel. It doesn’t matter what your GDP is, or how many nukes are locked in your bunker: on the internet, everyone’s equal. This has given countries that have traditionally lagged industrially and economically a chance to make amends. From tiny islands to humble nation states, a series of global outposts have made it known that they’re open for crypto business. This makes cryptocurrency a Great Leveler.

Lithuania has seized this opportunity by creating a favourable regulatory eco-system around crypto currencies along with a solid infrastructure of fast internet. Lithuania is excelling in issuing new digital currencies, or “Initial Coin Offerings” (ICOs) – over the past year, they have raised half a billion euros from ICOs and blockchain-based businesses. The influx of real cash for digital units has helped Lithuania’s economy to grow by 3.1% this year compared to the average 2.3% for the rest of the EU.

Shanghai Stock Exchange (SSE), eyeing the use of distributed ledger technology (DLT)

Shanghai Stock Exchange DLT — Shanghai Stock Exchange adopting to DLT

The research paper on published on Tuesday by Shanghai Stock Exchange (SSE), analyzed the use of Distributed Ledger Technology [DLT] at various stages of a trade lifecycle, such as the pre-trading customer registration, securities issuance and trading, and post-trading settlement. The paper also highlighted the key benefits of adopting to DLT such as an increase in settlement efficiency. However, the deployment may face serious regulatory issue it conflicts with the current centralized registration and settlement system.