Centralization vs. decentralization

Centralization vs. decentralization

Bitmain, the largest manufacturer of ASICs, plans to launch the IPO in August, and by the end of the year to have its stocks freely traded on Hong Kong exchange. The valuation of the company is expected to be between $30 billion and $35 billion

Look at Bitmain! That’s not an ICO, that’s an IPO. Bitmain is basically saying 'Yes, you can play with your crypto, whatever you want, we are from the different league'. And that’s probably right. It’s not like we suddenly wake up and find ourselves in a new wonder decentralized world, we still exist, and will exist in a world with stock markets, traditional investors, and a strong competition. In order to keep up, you have to grow.

And it’s the best way to raise a lot of money and to become a well-known company, to conduct an IPO and list your stocks on global exchanges. Bitmain will benefit from it, and the whole industry will benefit from it, because they will get new connections on traditional markets, and being the company from crypto market, will get an opportunity to lobby it. It's totally possible that

So it can be regarded as very positive news. Also, there's a rumor that we'll see Coinbase IPO this year.

DISCLAIMER: all the articles are based on personal opinions of their authors and shouldn't be considered as investment recommendations. Finrazor.com neither supports nor opposes any project or strategy, users must consider all relevant risk factors including their own personal financial situation.

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London Stock Exchange Confirms Tech Sale To Hong Kong Cryptocurrency Exchange

The London Stock Exchange (LSE) is entering the cryptocurrency market, albeit cautiously, after it sold its trading technology to Hong Kong exchange AAX. LSE Conscious Of Crypto Exchange Boom As the Financial Times reported January 22, LSE has offered its Millenium Exchange matching system to AAX, in a deal similar to that signed by Nasdaq and Estonia’s DX Exchange earlier this month. “If you look at the traditional market, there is a limited number of traditional exchanges,” the publication quoted Lorne Chambers, global head of sales and marketing at LSEG Technology as saying. But there are a number of crypto exchanges springing up. Unlike both Nasdaq and US counterpart Intercontinental Exchange, which owns the New York Stock Exchange, LSE has maintained a hands-off approach to the cryptocurrency sector until now. The UK is currently getting to grips with its cryptocurrency regulation, with noises from lawmakers alarming industry businesses and commentators after they included potential bans on cryptocurrency-related financial products and services. Exchange Owner: ‘We Need Regulated Tech’ For AAX backer Atom Group, however, bringing in regulated entities is necessary to strengthening the exchange sector. “One of the things we see in crypto is a lot of people have built their own technology,” CEO Peter Lin commented. One of the things we need moving forward is to bring in more technology from regulated markets to make sure this is safer for investors. While Bitcoin advocates disagree with the regulation logic, arguing instead that security is only possible through private custody of cryptocurrency and not through legislation via tightly-regulated third parties, many jurisdictions continue to advance their local landscapes. Nearby Hong Kong, Japan rolled out licenses to several exchanges in recent weeks, including to Coincheck, the domestic operator which lost over half a billion dollars in a hack one year ago. After a buyout, new owner Monex Group has slowly restored functionality to the platform, along with arranging refunds to those who lost their holdings. What do you think about LSE’s deal with AAX? Let us know in the comments section below! Images courtesy of Shutterstock The post London Stock Exchange Confirms Tech Sale To Hong Kong Cryptocurrency Exchange appeared first on Bitcoinist.com.

Controversial Opinion Piece Says XRP Decentralization is Happening, Puts Proof of Work Coins with the Dinosaurs

During the last few months, Proof-of-Work (PoW) cryptocurrencies have been experiencing some issues such as 51% attacks. This is the case of Ethereum Classic (ETC) a top 20 digital asset that has been affected by this kind of attack. However, other networks such as Ripple continue to expand decentralizing their network even more. XRP has been attacked for being a centralized digital asset. However, the cryptocurrency was able to overcome these critics and become the second largest digital asset in the market. However, XRP has still a long way for taking Bitcoin’s position as the largest cryptocurrency. This is something difficult because Bitcoin (BTC) was the first cryptocurrency to be released to the market. XRP was launched a few years after, thus, it has fewer chances of becoming the most popular digital asset. Bitcoin has been using the PoW algorithm to verify transactions and keep the network secure. However, this process could eventually become obsolete as rewards drop for miners. Every 210,000 blocks miners will be receiving fewer Bitcoins for their work. Unless Bitcoin price grows, they will eventually leave the market. Miners are located all over the world, but a large majority is currently in China, which is something that could heavily affect Bitcoin’s network in the future. In general, Bitcoin mining activities were very profitable when the asset was close to its all-time highs back in December 2017. Several companies decided to set up mining farms and start mining Bitcoin. This resulted in the centralization of the industry in just a few hands. ASIC miners used to process Bitcoin transactions are very expensive and can be acquired in bulk just by a few companies. XRP uses Distributed Agreement Protocol, also known as Consensus Protocol. In this way, XRP avoids the problem of double spending in a much more efficient way than Bitcoin does. The distributed agreement protocol works with validators that control that the network is operating in a healthy way. 80% of XRP validators must support and vote for a change during a period of two weeks before it goes into effect. This is a better way to improve the network compared to Bitcoin or other cryptocurrencies in the market. If the change is not agreed by these validators, then it will not go into effect. If validators want to disrupt the normal flow of transactions in the XRP ledger, users would have to agree on a new list that would allow the network to be operative. David Schwartz, the Chief Technology Officer (CTO) at Ripple, commented about this issue: “This has never been a problem for any blockchain in the past, and it’s required by every blockchain when previous agreements fail to be sufficient. Decentralized systems fundamentally allow interoperation only among people who continue to agree on a large number of things.” He went on saying that the XRP has the lack of incentives for this situation to happen. Honest participants want the network to properly work and have all the interest aligned. In this way, XRP looks better suited than other PoW networks to resist attacks by collusion or other bad actors. Furthermore, XRP is able to process more than 1500 per second while Bitcoin or Ethereum (ETH) could just support 16 transactions per second (TPS). Finally, the fees paid for transaction BTC and ETH are much larger than XRP. Ripple is also growing in the market. It has reached more than 200 companies working on top of the RippleNet. Additionally, there are new products such as xRapid that are going to be embraced by financial institutions and banking firms to make cross-border payments in a much easier and cheaper way. At the time of writing, XRP has a market capitalization of $31.56 billion, this is half of the market cap that Bitcoin has ($62.19 billion). According to Yahoo Finance, XRP has a price per coin of $0.31 while Bitcoin is being traded around $3,550.
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Bitcoin.org founder worried about Jihan Wu’s disappearance post Bitmain ousting

Jihan Wu, the former CEO of Bitmain, the Bitcoin mining manufacturer, has absconded from social media leaving the cryptocurrency community worried, especially the co-owner of Bitcoin.org and Bitcointalk.org, known by his pseudonym Cobra. Trouble began brewing back in November when the Bitcoin Cash community was split between Jihan Wu and Roger Ver’s Bitcoin Cash ABC and Craig Wright’s Bitcoin Cash SV. The two factions had a heated dispute, following which the coin hardforked into two new cryptocurrencies, which both currently occupy spots in the top-10 list. Market forces dipped the prices of cryptos to a yearly low following this split. Bitmain also demoted Jihan Wu from director to supervisor in November and in the following months, rumors regarding the resignation of the co-founders Jihan Wu and Ketuan Zhan began to float. Both Jihan Wu and Ketuan Zhan have been under fire since the close of last year. Wu was lambasted by not just Bitmain but the cryptocurrency community for backing Bitcoin Cash, which has been on a bearish spree since the hardfork, with Zhan criticized for his poor diversification decisions. While both Jihan Wu and Ketuan Zhan will still remain a part of the company as stakeholders, Wu will be ousted as Bitmain’s CEO with an appointment imminent. However, since the news of this replacement surfaced, Jihan Wu has retreated from social media, leaving many worried. Cobra, the co-owner of bitcoin.org and friend of Jihan Wu, voiced his concern about Wu’s “sudden disappearance”, stating: “Jihan has disappeared off Twitter. I’m the last person he replied too on here before his sudden disappearance. Very worried about him. I can’t even imagine the stress he’s going through right now. As one human being to another, I hope you’re OK bro.” Some Twitter users are even dwelling on the borders of lewd theories regarding the former Bitmain CEO’s disappearance, with one user stating: “I could be completely wrong, but my admittedly low-info Westerner understanding of Chinese business culture is, if your large venture fails, there are serious, dangerous personal consequences.” Bitmain has not been doing very well since the “crypto-winter” set in. The company’s research and development department based in Israel were cut by 50 percent. They downsized their Bitcoin Cash development team. Furthermore, back in December 2018, Bitmain was served with a lawsuit by United American Corp., on the grounds of hardfork manipulation during the BCH split. Also, in late-November, 2018, miners filed a lawsuit against Bitmain, claiming that the company’s device mined the cryptocurrencies for the benefit on Bitmain rather than the current user. The post Bitcoin.org founder worried about Jihan Wu’s disappearance post Bitmain ousting appeared first on AMBCrypto.

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