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DGaming open-sources Tendermint-based blockchain engine for gaming

DGaming, a decentralized gaming ecosystem, today announced the open-sourcing of its Tendermint/CosmosSDK hack with distributed pseudorandom number generator (PRNG) suitable for applications. The open-sourced code can be viewed on the DGaming Github repository. The DGaming Hub is part of the ecosystem of products and solutions created with the aim to push the industry towards mass […]
CryptoNinjas

Cosmos Is Among “Most Successful Investments” For VC Fund

The crypto world might be maturing, but that doesn’t mean the wild gains are over. A cryptocurrency investment firm has realized fifty-fold returns from the Cosmos (ATOM) blockchain – one of their most successful investments to date. London-based KR1 has sold just over 70,000 ATOM tokens for an average price of $5.14, raising more than $360,605 in total. Considering the initial investment was around $7,000, that means KR1 saw a cool gain of 5,150%. Cosmos is an intermediary layer that allows information and transactions to move across otherwise independent blockchains. Tendermint, the company responsible for Cosmos’ development, described it as the “internet of blockchains” at its mainnet launch, and our Chief Code Reviewer, Andre Cronje described the project as ‘fantastic’. ATOM tokens are used to validate the network. Holders stake their tokens with block-producing delegates, in exchange for a share of the block rewards.  KR1 began staking tokens when they were released on May 1st and has generated more than $122,000 from staking yields. ATOM tokens have experienced a significant increase in price, as has much of the crypto market. They traded at approximately $4.20 at the release date, but prices have since risen well above the $6 mark. ATOMs traded at $6.20 at the time of writing, a 50% increase in just over four weeks.   ATOM’s price has risen steadily since May 1st. Source: CoinMarketCap   Founded in 2016, KR1 has invested in more than 35 different blockchain projects, including the likes of OmiseGO (OMG), Golem (GNT) and Elastos (ELA), all at seed-level. KR1 shares are publicly traded, in much the same way as Berkshire Hathaway’s. Through shareholder dividends, retail investors can realize returns that are normally limited to high net-worth and institutional players. Speaking to Crypto Briefing, CEO George McDonaugh described the “very successful” ATOM investment as an important experiment in how companies, like KR1, can create additional revenue streams. “It comes down to how you manage your asset,” McDonaugh said. “[W]e decided on this occasion, rather than sell it immediately, to keep enough back in order to enjoy the staking rewards.” KR1 remains “one of the few publicly listed companies in the world that is invested in staking tokens,” said McDonaugh. The company will continue to retain the majority of its ATOM staking position. While McDonaugh is bullish on the possibilities of token staking, he says that the industry would benefit from longer lock-up periods. When tokens are released weeks after the public sales, he says, speculators can sell them straightaway and cause significant price disruption for investors committed to the project. ATOM tokens were unlocked more than two years after the ICO. So far, staking activities are proving a worthwhile revenue stream for companies like KR1.   The post Cosmos Is Among “Most Successful Investments” For VC Fund appeared first on Crypto Briefing.
CryptoBriefing

Cosmos Code Review: Dammit, Time To Build

Let’s start this Cosmos code review with a look at the claims. Well, just this one really, because it’s kind of a biggie. “Cosmos solves today’s hardest blockchain problems.” Scalability — Tendermint BFT fixes this Usability — Cosmos SDK fixes this Interoperability — IBC protocol fixes this Only three items, but a lot to unpack here. Cosmos is a big mixed bag of different things, so sometimes it’s a bit tricky to know what we are talking about. We have the following; Cosmos — The foundation Tendermint — The pBFT consensus engine Cosmos SDK — The software package / collection that allows you to build dapps (but not in the ethereum smart contract sense, rather in the blockchain per dapp sense) IBC — A protocol for communication Amino — A specific protocol for data transference (protobuff essentially — this statement is overly simplified, but it’s not that important right now) Gaia — The first cosmos “hub” that is built with Cosmos SDK that runs on tendermint So anyone can build a dapp (blockchain) by using the Cosmos SDK (Software Development Kit) that runs on Tendermint and by using Cosmos it becomes IBC compliant and thus can be interoperable. So the scalability is addressed via two areas, area 1 Tendermint pBFT and area 2 that each dapp has it’s own consensus system (Tendermint). So if you build a Cosmos dapp you aren’t building it on Gaia, you are building a completely new blockchain, but because it is IBC compliant it can interact with other blockchains built with Cosmos SDK (thus interoperable) Usability, is because of Cosmos SDK, which wraps all the tricky bits, the consensus, the communication, the p2p, all taken care off with the Cosmos SDK. So the mix above covers, scalability, usability, and interoperability. The above has some interesting implications on the token side, since other than Gaia (which is sort of a demo example of Cosmos SDK) there isn’t really anything to do with Atom. You don’t need it to build your own Cosmos blockchain, you don’t need it for IBC or interoperability. You just kind of stake it and that’s it, since Gaia doesn’t support building on top of it. That aside, let’s look at Gaia and drill down from there.     Only 20 commits? Normally a big warning sign. Here it’s 100% ok, because this is just the implementation of Cosmos SDK, the real work is in Cosmos SDK and Tendermint. Which we will get into later. Gaia itself is a fairly small, straight forward code base, and that’s really because it’s just the “demo” for Cosmos SDK. Cosmos SDK and Tendermint are the real heavy lifters. But let’s see how it works. Golang project, so we start with /cmd/   gaiacli — command line interface, used for creating accounts, sending transfers, checking balances. This wraps around the RPC / HTTP endpoints, so we will look into it, but first, we want gaiad — daemon, this runs the nodes / software.     All the usual include candidates, cobra/viper for command line. Tendermint here is interesting, cosmos-sdk makes sense.     Bech32 prefixes for accounts, validators, and consensus nodes. Usual command candidates.     Pruning, MinGasPrice, HaltHeight and then we are sort of done. That’s it, this starts our blockchain. So the real work happens in NewGaiaApp, so let’s go hunt it down. Head over to cosmos/giaia/app     app.go     This gives a good overview of what is required to import from Cosmos SDK, baseapp is the core skeleton, codec handles all inter component communication, auth and bank for basic accounts and transfers. Distribution, mint (block rewards), slashing (bad behavior), staking (dPoS) all included. This is really all you need.     Just setup and initialization of the components, this file will mostly have setup boilerplate.     This is copy / paste stuff, just need to setup the key value stores, then you need to setup all the keepers (keepers manage all the work — we will get into them later)     AddRoute for proposals (http/rpc), allow community to setup and vote on proposals.     This is interesting, SetOrderBeginBlockers, we do mint, then distribution, then slashing, versus setOrderEndBlockers we do govern and then staking. So we first generate block minting, then distribute it, and then slash following by delegation rewards (after block). I’ll have to dig deeper to see why it’s this order. Again, mostly boilerplate from Cosmos SDK. And that’s kinda it.     Networks is setup scripts. docs is documentation, the rest is test systems. That’s all the “code” you need to run your own Gaia (Atom staking system — which is really all it is). And that’s a really good sign, it shows you how powerful Cosmos SDK and Tendermint are. Now to be fair, if this was another blockchain other than Gaia (which is Cosmos) I would be utterly unimpressed, since they didn’t do anything, but since Gaia is Cosmos is Cosmos SDK is Tendermint we can keep going.     Cosmos SDK, the real secret sauce. 5k commits, 86 branches, 112 releases, 92 contributors, this thing is as active as any of the big boys. Great PR and Issue management, great abstraction and encapsulation. We see a lot from here we already saw in the Gaia implementation, we have; baseapp — the core client — client interacting with the server codec — manages all the comms server — runs the server side store — handles all the storage x — this is where all the core modules go     In x/ we have auth, bank, distribution, ibc, gov, mint, slashing, staking. Everything required to make your own interoperable high scalability dPoS blockchain in less than 100 lines of code.     anteHandler for fee and auth, begin / end block is where you do most of your work, what do you want to happen before you get a block and what after. This is where you normally put most of your work logic (gaia didn’t really need it). Peer filters, state checkers, version management. This is just fantastic production level code.     Not much to say, it’s just really impressive how tendermint, abci, cosmos sdk all interact with each other. It’s really well designed and thought out architecture.     Not going to go into this too much, client side, keys, rpc, tx generation. Blockchain boilerplate, even if it is fantastic blockchain boilerplate.     Codec is an amino wrapper. Amino is solid as well. But /x/ is where the real work is, so let’s go have a look at bank / mint / slashing / staking     We start from keeper.     Keeper defines what we can do; Setcoins SubtractCoins AddCoins InputOutputCoins DelegateCoins UndelegateCoins So the thing to note at this point, Keepers are functionality wrappers. When you bring it all down to zero, the difficult part in blockchain is the distributed systems part, consensus. This is handled by Tendermint, and consensus is basically a “save” barrier. Normally you would simply say 10+10=20 so let’s save 20 in the store (database). In this case you need consensus, but it’s taken care off without you needing to worry about it, so you can just say 10+10=20 and store. So all the Keepers are just simple basic functionality. So for something like AddCoins, it simply takes an address, a coin type, and then adds the amount.     Really as simplistic as that.     This is side effect free code btw, not something you see often, great design principals. Cosmos Code Review Conclusion: Gaia is kinda pointless, it’s just a demo of Cosmos SDK, but damn, Cosmos SDK is good. Think I’ll start building a few chains with it as well.   Disclaimer: Crypto Briefing code reviews are performed by auditing what is on display in the master branch of the repo’s made available. This was performed as an educational review and any comments in the article are the opinion of the writer. It is normal for code to change rapidly, hence we timestamp our code reviews so that they present a snapshot at a moment in time. Information contained herein should not be used as any comment or advice on the project as a whole. Stegos Code Review Timestamp: June 5th, 2019   The post Cosmos Code Review: Dammit, Time To Build appeared first on Crypto Briefing.
CryptoBriefing

CosmosSDK has a critical security vulnerability; patch coming soon

The CosmosSDK has a critical security vulnerability, according to the cosmos network forum. The vulnerability was reported to the Tendermint team and will be patched soon. The fix will be available in v. 0.34.6 of the CosmosSDK. While the company still hasn’t disclosed the nature of the vulnerability, it says it will share the details within seven to 10 business days. Cosmos is preparing a hard fork to upgrade the Cosmos mainnet. Due to the severity of the issue, organisations that might have been affected have been contacted by Cosmos so that they can upgrade the system as soon as the fix is ready.
The Block Crypto

New Sentinel Tendermint based decentralized VPN client now available

CryptoNinjas Sentinel, an interoperable networking layer for distributed services with a decentralized VPN (dVPN) as a first use case, announced today that the new Sentinel Tendermint based dVPN Client (v0.1.2) is now available for download on Windows, Mac, and Linux. The v0.1.2 Client has made significant strides with... New Sentinel Tendermint based decentralized VPN client now available
CryptoNinjas

Leading Smart Contracts and Blockchain Audit Firm, CertiK Completes Full Audit of the Terra Protocol

One of the biggest names in the smart contracts and blockchain audit sector, CertiK announced today, May 14 that it has successfully completed a formal security audit of Terra. Terra is famed for designing an algorithmic stablecoin that will power the next generation payment system on the blockchain. The mainnet of Terra, which went live in April, is a Delegated Proof-of-stake (DPoS) system that uses the Cosmos SDK and the Tendermint Consensus Engine. Effective Collaboration Security experts, profound economists, security engineers and other professionals from CertiK were on hand to audit the Terra protocol and public blockchain. The rigorous scrutiny of Terra’s economic model by CertiK was done to test against potential market manipulations, an architectural review with special attention of Cosmos plug-ins was effectively protected against possible edge scenario attacks, not forgetting the manual review by experts on Go- the language in which Terra’s code was written in. Terra’s bid to becoming the first widely accepted price stable cryptocurrency in the world will depend greatly on its security clearance. The company is launching a revolutionary blockchain based payment system that uses the stablecoin in H1 2019, and it has already partnered with e-commerce firms which will help support the new payment solution. eCommerce giant like TMON from South Korea, Carousel from Singapore, Tiki from Vietnam and Baemin also from South Korea, is part of the companies that have successfully partnered with Terra.  Collectively, 15 eCommerce companies that collectively process $25 billion annually through 45 million users are all in agreement with Terra. Security of the System Commenting on the high-level certification from CertiK, Co-Founder of Terra Do-Kwon stated that: “We are pleased to receive a formal stamp of approval from CertiK, who is known within the industry for setting a very high bar for security and reliability. The thorough audit result shared by CertiK’s team of experienced economists and engineers give us more confidence in our protocol, and we are excited to quickly roll out our first payment dApp with eCommerce partners in the coming weeks.’’ More on Terra Terra is an ambitious company that is determined to bridge the gap between digital currencies and real-time applications. The company is designing a price-stable digital currency that will be able to power the next generation payment network on the blockchain. Founded by a team of highly experienced and motivated financial experts, the company is situated in both Singapore and Korea. More on Certik Certik is one of the leading blockchain and smart contract verification platform. The firm was founded by highly skilled and experienced former verification experts from Yale and Columbia University. Due to its high integrity, the firm has a strategic partnership with some of the biggest exchanges in the world like Binance, Houbi, OKEx and some public blockchains like ICON, NEO and QuarkChain. To request the audit/verification of your smart contracts, please email us at- audit@certik.org or visit www.certik.org to submit the request. Follow us on twitter- https://twitter.com/certikorg Telegram- https://t.me/certikorg Leadership Daniel Shin- Co-Founder Do Kowon- Co-Founder Media Contact Laura Raanan Laura@blonde20.com +972-50-671-1772 For more information, visit- https://terra.money/ Telegram- @terramoney Visit the Terra blog- https://medium.com/terra-money The post Leading Smart Contracts and Blockchain Audit Firm, CertiK Completes Full Audit of the Terra Protocol appeared first on ZyCrypto.
ZyCrypto

Tendermint Director: Bitcoin to Utilize Cosmos Network, the Internet of Blockchains, to Absorb It All

Zaki Manian, the Director of Tendermint Labs, in a recent interview with CryptoGlobe spoke about various issues around the Cosmos network. Described as the “Internet of Blockchains,” Cosmos allows otherwise independent blockchains to communicate and transact with one another. It acts as an intermediary layer that can connect two blockchains together as well as providing […]
Bitcoin Exchange Guide

Protecting Byzantine Fault Tolerance with Trusted Execution

You might be familiar with non-BFT consensus protocols like Paxos and Raft. These protocols can tolerate crash failures in up to 1/2 of the nodes, but these failures do not include malicious behavior. Zookeeper, Consul and etcd are examples of applications that use Paxos and Raft.Byzantine Fault Tolerance (BFT) is a property of distributed protocols that guarantees that honest parties are “on the same page” (see that same state) despite the presence of attackers in the peer-to-peer (P2P) network.Compared to non-BFT consensus protocols, state of the art BFT protocols are secure when less than 1/3 of the nodes are dishonest or malicious. Tendermint is a state replication software that uses a Byzantine-Fault-Tolerant (BFT) replication protocol based on PBFT. It integrates with applications requiring Byzantine Fault-Tolerant state replication via its Application BlockChain Interface (ABCI).Given past experience with cryptocurrency and blockchain protocols, where we have seen a single miner obtaining more than half of the hashing power — it is a pretty strong assumption to rely on.The concern regarding the possibility of an attacker controlling more than 1/3 of the nodes is more severe when the network does not have many nodes, which is likely to happen when bootstrapping a new P2P network.Ensuring the integrity and authenticity of each node is important. The Anjuna Runtime enables running Tendermint nodes inside a Trusted Execution Environment such as Intel® SGX or AMD SEV, making it extremely hard for an attacker to take over a validator node to propose, pre-vote, pre-commit or commit illegitimate transactions.TEE diversificationWhile Tendermint can be used to replicate state between applications written in different languages, it can also be used to synchronize applications executed using different Trusted Execution Environments.It is a natural extension of Tendermint’s vision of bridging between different programming languages to the diversification of Trusted Execution Environments.Integration with AnjunaAnjuna integrates attestation into standard TLS authentication, enabling running a network of nodes without modifying Tendermint source code. It can be easily applied to existing Tendermint deployments to boost security.https://medium.com/media/3c851dac986ab6dbb2d1aaa91205a8eb/hrefProtecting Byzantine Fault Tolerance with Trusted Execution was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
Hackernoon

Cosmos: The Global Economy Will Run On The Blockchain

Cryptocurrencies and blockchains offer services that were impossible in earlier systems: free and fast international transactions, secure and uncensorable trading and a virtual store of value, to name a few. Many of these possibilities would probably complement one another, if not for the tribal differences between teams and communities. Believers in Ethereum Classic (ETC) see a completely immutable ledger as a key advantage over Ethereum. Cardano’s Charles Hoskinson has called EOS “egregious to the core,” while Bitcoin maximalists argue that other digital assets are poor imitations of the original. These divisions are holding crypto back and preventing it from realizing its full potential, says Zaki Manian, Director of Tendermint Labs. Among other projects, Tendermint is responsible for developing the Cosmos blockchain. Described as the “Internet of Blockchains,” Cosmos allows otherwise independent blockchains to communicate and transact with one another. It acts as an intermediary layer that can connect two blockchains together as well as providing scalability solutions, including a new BFT consensus mechanism that can scale to thousands of transactions a second. Instead of trying to provide a universal decentralized solution for everyone and every problem, Cosmos has focused specifically on developing a new way for different projects to interact with one another. “More than anything, Cosmos is not a product but an ecosystem built on a set of modular, adaptable and interchangeable tools,” their website reads. Building the Internet of Blockchains The interoperability problem is not a new one. Wanchain (WAN) creates synthetic wrappers that allow users to use and trade tokens that essentially act as proxies for digital assets on other blockchains. Wrapped Bitcoin (WBTC) does something similar, with users depositing cryptocurrencies into a wallet which then mints derivatives on a 1:1 ratio. Speaking to Crypto Briefing on an internet call, Manian explained that Cosmos is designed to allow projects to develop independently but still maintain access to the wider cryptocurrency ecosystem. “Our larger vision is that there will not be one system able to serve everyone; no one is special,” he said. At present, cryptocurrency projects face substantial opportunity costs when building ecosystems. Blockchains remain isolated from one another, and developing on one blockchain means excluding potential users on other platforms. The problem is that realizing a new blockchain ecosystem often requires working in a silo, Manian explained. He noted that, at present, the entire digital asset sector is a collection of blockchain projects that can’t talk to each other, even if they want to. “A group of people disagree but that doesn’t mean they have to completely separate into two distinct economies,” said Manian. “The Ethereum-Ethereum Classic fork was a principled discussion about governance. Now we have two separate economies.” Cosmos is designed to provide a network where teams building on something like Ethereum Classic can communicate with their opposite numbers on Ethereum, without compromising the things that make them unique. Quite simply, explained Manian, Cosmos’ aim is to “facilitate economic integration while maintaining political independence.” The grandiose vision Like many other actors in the sector, Manian and the Cosmos team fully believe that blockchains havethe potential to completely overhaul the global economy. There are plenty of other products and initiatives that Tendermint is developing. But there is a “grandiose vision” as well, argued Manian.  “We want to restructure the global economy to run on the blockchain.” This won’t happen overnight, and Cosmos isn’t known for quick work. It spent three years off-grid while the team researched and developed the technological layer, and its mainnet only launched in March. Manian believes it will take anywhere between twenty and thirty years before all of their goals have fully come to fruition. But the last three years have been well spent, according to Manian. Keeping true to their principles, the system they have designed will function in a decentralized manner even during a crisis. “We are philosophically driven,” he said.   Crypto Briefing’s CEO is an advisor to Wanchain, and was not involved in creating this article. The post Cosmos: The Global Economy Will Run On The Blockchain appeared first on Crypto Briefing.
CryptoBriefing

DEXON Showcases Responsive Byzantine Agreement Reaching 12,000 tx/s

DEXON is an innovative blockchain technology that focuses on real-world adoption for building decentralized applications (DApps). Since publicly announcing its plans to build the blockchain platform, DEXON demonstrated strong performance traction, such as hitting 12,000 transactions per second (TPS) with fast finality of 1 second on their testnet. Besides that, DEXON’s mainnet went live on the 25th of April, 2019.DEXON wants to prove that it’s possible to solve the trilemma of blockchain issues which consists of:1/ Slow transaction finality2/ Miner centralization3/ Low throughputSlow Transaction FinalityOne of the hot debates today is about finality in blockchain consensus. Many projects have been experimenting with clever mechanisms and protocols to find the ideal balance between speed and security. The most important property is finality which can be described as the confirmation that all well-formed blocks will not be revoked once agreed on and committed to the blockchain.To dig deeper, we can distinguish two types of finality;Probabilistic finality refers to the finality provided by chain-based protocols like Bitcoin’s consensus in which the probability that a transaction will not be reverted increases every time new blocks are being added to the chain.The more blocks have been appended on top of the block containing your transaction, the more likely that the fork containing that block is the longest chain. Because of this probabilistic finality property of Bitcoin’s chain, there is an implicit rule to wait at least for 6 blocks to be added on top of your block (~1 hour) in order to ensure that there is a very low likelihood of your transaction being reverted.Absolute finality refers to the type of finality that is often implemented by Byzantine Fault Tolerant protocols (e.g. Tendermint), which is also used by DEXON. Absolute finality simply means that a block has reached finality once it is included in the chain. DEXON also understands this needs for finality as companies building on top of blockchain technology rely on quick finality.Actually, we can find a third form of finality called economic finality, in which it becomes monetarily costly for a block to be reverted. The most well-known mechanism is slashing (for Proof of Stake) which means that a malicious user gets punished for not acting honestly. The slashing refers to the staker losing half of its staked tokens (e.g. Capser FFG, Tendermint).Solving Miner CentralizationFair Cryptographic Sortition to solve DecentralizationDEXON users can use the native DXN coin to get validator rights in the network. This means that they have the chance to be delegated to verify a set of blocks as every hour, a small set of random validators is selected between the token holders.Unlike other Proof of Stake mechanisms, it doesn’t matter how much DXN coins you hold. Everyone gets a fair chance of being selected. Therefore, DEXON is able to prevent the network from falling into a minority-controlled network.Solving Low ThroughputResponsive Byzantine Agreement to solve ScalabilityDEXON has found a clever way around the issue of slow block finality. It introduces unpredictable randomness to prevent malicious nodes from proposing incorrect blocks as nobody is able to predict this random beacon. Because of this unpredictable property, there is no need for slow verification mechanisms or time-consuming fork-choice rules.In a nutshell, the randomness beacon can be described as (source: more info DEXON randomness):For each block, there is a unique random beacon, which is accessible for smart contracts.The random beacon is unpredictable for anyone before the block is confirmed.Even the block proposer cannot predict or bias the beacon of that block.Every user can verify the validity of the beacon, hence, it is called verifiable.This means that the validators interact with each other as soon as the messages arrive so that the block confirmation time only depends on the actual network delay instead of any predetermined time bound.The Bottom LineDEXON is certainly a project to follow as they are introducing interesting innovation into the blockchain space, especially the experiments they undertook with the BFT consensus algorithm. Also, DEXON has planned the launch of the SQL-VM in Q4 which gives developers access to write smart contracts with SQL92 compatible language.Block finality is one of the most important properties for reliability and mass adoption by real-world businesses.Further reads about:- Byzantine agreement and on-chain randomness- Responsiveness partition resilience- Cryptographic sortitionhttps://medium.com/media/3c851dac986ab6dbb2d1aaa91205a8eb/hrefDEXON Showcases Responsive Byzantine Agreement Reaching 12,000 tx/s was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
Hackernoon

Cryptocurrency Exchange Kraken Lists Cosmos’ ATOM Digital Token

Cryptocurrency exchange Kraken on April 21, 2019, announced that it has listed Cosmos (ATOM), a proof-of-stake digital currency that utilizes the Tendermint consensus protocol. Kraken’s users will now be able to buy, sell, and store ATOM digital tokens. Kraken Lists ATOM After following Binance and other exchanges in delisting the controversial cryptocurrency Bitcoin SV (BSV),Read MoreRead More. The post by Aisshwarya Tiwari appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News\
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Cryptocurrency influencers react to Facebook’s Libra, boon or risk for Bitcoin?

Some of the most prominent figures in the crypto community took to Twitter to share their thoughts on Facebook’s Libra cryptocurrency. While some claim that Libra lacks the necessary features to compete with Bitcoin in the race to become the world’s currency, others argue that it could destroy most altcoins and stablecoins in the market. 2/ Libra's mission is to enable a simple global currency and financial infrastructure that empowers billions of people. — David Marcus (@davidmarcus) June 18, 2019 Facebook’s Libra Facebook’s highly anticipated cryptocurrency was finally unveiled. “[It] is a new global cryptocurrency, built on an open-source blockchain called the Libra Blockchain featuring its own proof-of-stake protocol,” said the whitepaper. The term “global cryptocurrency” comes from the fact that it nodes will be distributed across the globe and it is not pegged to a single fiat currency, according to the documents. Instead, it will be backed by different real-world assets denominated in the American dollar, British pound, Japanese yen, and the euro and other low-risk securities. The Libra Association, a Switzerland-based non-profit, will release the Libra blockchain in 2020 with a group of 28 founding members that will be in charge of validating transactions in the network. The list of network validators include Visa, Mastercard, Paypal, Uber, Lyft, eBay, and others, that have invested around $10 million to be part of the board and operate a node. Facebook also launched a new subsidiary called Calibra, which is a digital wallet designed to “provide financial services that will enable people to access and participate in the Libra network.” With Facebook’s gigantic user base and its ability to leverage WhatsApp, Messenger, and Instagram, Calibra will instantaneously compete with the world’s most popular existing wallets and exchanges, such as Coinbase, RobinHood, CashApp, and others. Even though this is a massive play for Facebook for entering the financial services industry, the cryptocurrency community expressed a mixture of concern, distrust, and excitement. Many took to Twitter to express their sentiment about the recent move by the social network giant. Crypto Twitter’s reaction Anthony Sassano, the co-founder of EthHub, points out that in order to sign up for Calibra, a government-issued ID is required to “comply with laws and prevent fraud.” 2/ To get started with Calibra, you'll need a government-issued ID to sign up for an account and the website states that "identity verification is important to comply with laws and prevent fraud, so you know people are who they say they are." Well, of course 😅 — Anthony Sassano (@sassal0x) June 18, 2019 According to @AkadoSand, this KYC procedure poses a major security risk for its users since the first time a transaction is made from an account, any future transactions will be linked to it as well as any other sensitive information. $LIBRA will be the best thing that will happen to chain analysis and LE. From the moment you make a single tx, your id will be linked to it and all future txs forever Like BTC but as soon as you use it you're automatically KYC'ed. Profile, location, timestamps, preferences, etc — Akado 'Bitcoin Halving in 339 days' Sang (@AkadoSang) June 16, 2019 With a user base of two billion people, Changpeng Zhao, the founder and CEO of Binance, believes that Facebook will not only have access to its users names, IDs, addresses, phone numbers, family members, friends, real-time and historic location, but with the introduction of Calibra, it will now gain access to their financial data. Facebook Libra coin don't need KYC. They have so much more data on the 2 billion people. Not just name, id, address, phone number. They know your family, friends, real-time/historic location, what you like… They know you more than yourself. And now your wallet too. Best AML! — CZ Binance (@cz_binance) June 18, 2019 Such a vast amount of information under a central authority could lead to a “disaster in slow motion,” as Tamas Blummer, a Bitcoin Core developer, indicates. The VP at CoinTerra suggests that technical features of Libra, such as “account model, generic language, [and] on-chain scaling,” makes it more of an Ethereum competitor than Bitcoin. Libra resembles Ethereum more than Bitcoin. It contains all the features that make Ethereum garbage. account model, generic language, gas, on-chain scaling with sharding, some BFT consenus. In addition it has to implement all KCY and AML. A sure disaster in slow motion. — Tamas Blummer (@TamasBlummer) June 18, 2019 Along the same lines, Pavol Rusnak, CTO at SatoshiLabs, and Ran Neu-Ner, CEO of Onchain Capital,  asserted that Facebook’s new cryptocurrency could have the potential to replace altcoins and stablecoins, but it will fail against Bitcoin. Facebook just gave Bitcoin its biggest boost ever and also rendered 90% of alts useless at the same time. — Ran NeuNer (@cryptomanran) June 18, 2019 The fact that Libra is not decentralized or censorship resistant, while its legal and tax status remains unclear— as Larry Cermak, research director at The Block Crypto pointed out—reduces its chances of becoming “the Bitcoin killer.” Just so we are clear, Libra is:– not decentralized– not censorship resistant– not guaranteed to work technologically – not guaranteed to be cleared by regulators– not clear in regards to tax implications — Larry Cermak (@lawmaster) June 18, 2019 To Peter Todd, a Bitcoin Core developer, Libra is indeed just an “unscalable centralized database,” but to Saifaden Ammous, author of The Bitcoin Standard, it is actually the only cryptocurrency other than Bitcoin that has the potential to succeed. Libra whitepaper initial analysis: The only digital currency other than bitcoin that matters, and it could succeed massively. But it does not compete with bitcoin, it reinforces bitcoin's value proposition, and will likely need to rely on bitcoin if it succeeds. Thread👇 — Saifedean Ammous (@saifedean) June 18, 2019 Libra is still one year away from being launched and its impact on the cryptocurrency market remains to be seen. As Facebook advertises its new project to its 2 billion customers, more people will be exposed to the terms “cryptocurrency” and “blockchain,” which could bring more attention into the market. The overall sentiment across the crypto community can be summed up in one tweet by Alistair Milne, CIO at Atlanta Digital Currency Fund. Sell Libra, buy Bitcoin — Alistair Milne (@alistairmilne) June 18, 2019 The post Cryptocurrency influencers react to Facebook’s Libra, boon or risk for Bitcoin? appeared first on CryptoSlate.
Cryptoslate

Facebook unveils Libra cryptocurrency

Facebook announced its own cryptocurrency Libra that will be backed and controlled by the Libra Association which also includes founding members Uber, Lyft and Spotify. The platform will allow users to buy and send money without racking up as many fees as traditional financial platforms. Users can buy or cash out the cryptocurrency at local exchange points and spend it using interoperable third-party wallet apps, according to a Libra whitepaper. The cryptocurrency also claims to make it easier to send money between countries for less that it would cost with traditional providers. Facebook is also launching a subsidiary called Calibra to handle its crypto dealings and protect user privacy by keeping Libra payments and Facebook data separate so that it won’t be used for targeted advertising. User identities also won’t be tied to publicly visible transactions but Libra association members will earn interest on money that users cash in. That interest will be held in reserve to keep the value of the currency stable. ProPrivacy.com digital privacy expert Ray Walsh expressed doubts about the platform given Facebook’s track record for protecting consumer data. “Considering that Facebook is already the second largest advertiser in the world (second only to Google), this added integration is concerning,” Walsh said. “The idea that social data and financial data could be combined is worrying, and although Facebook claims that it will keep the distinct data sets at arm’s length – it is hard to believe that consumer habits will not be tracked in order to allow Facebook to better serve ads,” he said. Walsh contended because Facebook produces the majority of its revenue through ads and has proven untrustworthy with consumer data on several occasions in the past, it seems unlikely that the company does not plan to exploit as much consumer data as legally permitted. The post Facebook unveils Libra cryptocurrency appeared first on SC Media.
SC Media

CNBC Video: Jim Cramer Calls Facebook’s Libra Cryptocurrency Coin Brilliant After Reading Whitepaper

Facebook Officially Announces The Creation Of Its Cryptocurrency Libra, CNBC’s Cramer Says the Project Is Brilliant Today, Facebook finally announced its most awaited project, Libra. According to the organization, a new Facebook regulated subsidiary called Calibra was created in order to manage the project and to create a new wallet based on the service. The head of […]
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