Tendermint

A interoperability protocol for blockchains that power Cosmos.

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Kava Introduces an Interledger Payment Rail to Complement Cosmos Network

Based on a Medium post from December 3, 2018, Kava Labs has recently partnered with Cosmos to deploy its inter-ledger solution payment streaming to Cosmos Zones. Kava labs inc. is a San Francisco-based venture-backed company working on payments innovations using blockchain technologies. The Cosmos Network Cosmos is a project built on Tendermint that incorporates the key developments to achieve cross-chain...Read More. The post by Nuno Menezes appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News
BTC Manager

Pchain Code Review: Andre Cronje Revisits The Project

In a comprehensive rebuttal to Andre Cronje’s Pchain Code Review earlier this week, Pchain released a statement explaining what they believed he had missed. Since it’s our intent to be completely fair to both the business and our readers, we are publishing that rebuttal here. Following these comments, Andre went back into the repos discussed by the Pchain team, and took another very careful look at the code. His findings are below the image. It isn’t easy to read a critical review: and Pchain has responded constructively to Andre’s initial comments. We do not intend for the Crypto Briefing website to become a conduit of conversation between project teams and our reviewers and writers (we have Telegram and Twitter for that), but on this occasion Andre felt strongly that it was important to check on the points raised by Pchain.  – Jon Rice, Managing Editor   Pchain statement regarding Crypto Briefing code review:     Pchain Code Review Part II   Branches new_one_stack – Integrating PDBFT into Ethereum mining     No more tendermint, instead core ethereum. Version added, RPC still default. Code is cleaner and neater, that’s for sure. ChainID’s have become strings. No real changes in ethereum, just creating a node. cmd is neat. Main chain and child chain still the same setup, still a tendermint config. Joining a new child chain means you have to join as a validator and submit stake.     cross_chain.go seems to contain the bulk of the work, the rest is just to setup the ethereum chains. Let’s pay close attention to this file.     Creating a new sub-chain. Name has to be unique. Validators must be more than 1.     Main chain and childChain array. As mentioned in previous review. Tendermint consensus (BFT)     Vote epoch > Start vote > Reveal vote > Tally vote. So, it is definitely better than what we saw in the master branch, it’s better organized, it’s better designed, but essentially it is still just a multi dimensional ethereum with tendermint BFT (ethermint or cybermiles essentially). Better code than previous, but still nothing really unique. Let’s look at the BLS to VRF branch change. one_stack_bls_merge – BLS consensus to VRF proposer selection, to one-step voting     Still BLS from what I can see, i’ll dig more, maybe utils. Can’t find the VRF proposer selection. So…. I found where they are making the bulk of their changes.     …in the vendors folder. Guys, this is for dependency management, don’t edit files here… Ok, so we need to look at commit logs now instead, since vendor files are being modified. That sounds incredibly tedious. But let’s have a look.     Ok, this is what they meant with they incorporated BFT into go-ethereum. They added tendermint consensus. Still not seeing the VRF though. The next branch is said to improve it even more, let’s look at it. run_tx_before_vote – more efficient run&vote order     9th we had new_one_stack merged in, so let’s track changes from here.     Vendor changes again, in go-ethereum. This hurts me to see. Code is good though.     Let’s jump back to TX3ProofData to see if it has the VRF     Not finding it. Think I’m looking in the wrong place. Let’s go back to new_one_stack and look at the commits for the vendor changes.     TX3PRoofData broadcast, all validators. Nice addition. Pchain Code Conclusion (Part II): More going on here than in the master branch, I was not expecting the changes in vendor, I didn’t even bother to look there. The go-ethereum integration of tendermint is decent (although so is ethermint). The cross-chain implementation is nice (I wanted to say cute), Child chains get their own validator sets, they can use the mainchain to facilitate cross-chain communication. This is technically what they promised they were going to build. Bit unsatisfied still that it is just re-organized / modified / (improved?) ethereum / tendermint, and that the changes were made in vendor, but at the same time I guess I don’t really know what to expect anymore. How many projects have raised large sums of money off of he back of ethereum? Do the multi / cross-chains & tendermint increase ETH scalability (while sacrificing some decentralization and security), yes it does. So does ethermint though, and everyone still uses Ethereum.   You can chat about Pchain in our Telegram group. We love a good rumble. 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. Pchain Code Review Timestamp: November 20th 2018   The post Pchain Code Review: Andre Cronje Revisits The Project appeared first on Crypto Briefing.
CryptoBriefing

Pchain Code Review: Multichain System On EVM

You all wanted this Pchain code review, you know who you are. When Pchain? When Pchain? Well, now Pchain. Not sure if you’ll love it but I’m not here to butter anyone’s butt. So what is Pchain – “The first native multichain system that supports EVM in the world. Making large scale blockchain applications possible.” Okay, Ethereum Virtual Machine for the uninitiated… but count me as one of them, because what does native multichain mean? “One main chain and multiple derived chains. “ “Consensus with hierarchical sharding pipeline” What? “POS based multi layer sharding mechanism with a novel pipeline design that tremendously improves the performance of transactions.” Let’s just go to the code instead.     Hasn’t seen commits in a few months, but let’s assume it’s the usual China / Github argument. I see ethermint. Not a great start.     go-ethereum and tendermint. Different handlers per chainID. We are going to see a multi array chain model aren’t we? Nothing really happening in server, let’s move on;     StartP2P, NewChainReactor(), AddReactor, they have my attention, let’s have a look.     Ok.     Let’s start from CLI, so we want to checkout, GetCMInstance, StartP2P, LoadAndStartMainChain, LoadChains, StartChains, and StartInspectEvent.     LoadMainChain, MakeTendermintNode, and getConsensus are our targets.     Ok.     Yup, just an array of ethermint chains. You interact with each one separately. They didn’t need the mainchain. Ok, very unimpressed with this main implementation. It’s just ethermintwith an array of chains. They have another repo though; research;     bft looked interesting, it was just poa. newcore looks interesting;     Not bad, I don’t know why it’s built. The coding style is very different, doesn’t seem from the same team. Builds up a new eth using eth libraries, pretty cool. Newcore was good.     Merkle is good.     Main is good. I don’t get it, on the one side we have this multi chain ethermint rush job, which is bad, and on the other is this elegant new chain rewrite off of ethereum, which is good. Pchain Code Review Conclusion: 50/50. So at the root of it’s promise, is it this native multichain, hierarchical sharding pipeline? No, and stop using dumb buzzwords. Do we need another chain? No, probably not. Is the code mostly reorganized go-ethereum and ethermint? Yes, but that isn’t necessarily a bad thing. I’m just not seeing any special sauce here. Nothing unique, no differentiation. Just another one.   You can chat about Pchain in our Telegram group, and knowing you lot, you undoubtedly will. A lot. 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. Pchain Code Review Timestamp: November 17th 2018   The post Pchain Code Review: Multichain System On EVM appeared first on Crypto Briefing.
CryptoBriefing

Thailand’s First ICO J Ventures JFin Coin to Use R3 Corda And Microsoft’s Technology

J Ventures, which held one of the first initial coin offerings (ICOs) in Thailand earlier this year, signed a memorandum of understanding with R3 and Microsoft to provide technical support for its peer-to-peer lending platform. R3 and Microsoft have been working together since at least 2016 when the tech giant announced it would partner up with the banking consortium that R3 had been developing. In 2017, the two firms said they would be offering R3’s Corda as a software-as-a-service application running on Microsoft’s Azure cloud. Over 72% of the population in Southeast Asia remains unbanked or under-banked. Access to micro-loan is a particular problem, as a result of the prohibitive cost structure of existing financial institutions. To address this market inefficiency, the JFin ecosystem is creating a decentralized digital lending platform (”DDLP”), using blockchain technology and the digital transformation of the process. Through the blockchain, a decentralized peer-to-peer network can be built to replace the existing centralized system and enable frictionless peer-to-peer transfers. Smart contracts will be used along with Proof-of-Stake mechanism (e.g. Tendermint) to ensure backers are rewarded for their work.’ The firm held one of the first successful ICOs in Thailand last February to fund the project, which it describes as a “decentralized digital lending platform.” Investors in the ICO received JFin Coin, which sold for 6.60 baht (around $0.20 USD) during the token sale. It is currently trading at 3.24 baht ($.09 cents) on Thai exchange Coin Asset. The JFIN is a utility token for the JFin ecosystem that not only fuels the system but also encourages mass participation of P2P microloans and other financial services that help the unbanked and underbanked. The company's analytic credit scoring will gauge the creditworthiness of each applicant for personal loans from JFintech by Jay Mart or quick loans from Fast Money. Unlike the National Credit Bureau, the service will collect multidimensional data on purchasing power, spending behavior, and social media habits.
Bitcoin Exchange Guide

What is Cosmos Network (ATOM) | A Beginner’s Guide to the Internet of Blockchains

To get into what the Cosmos Network does will take unravelling the components and the problems they solve. In a nutshell, Cosmos Network is an internet of blockchains.   Cosmos networks together all kinds of blockchains by leveraging the advantages of Tendermint and the Inter-Blockchain Communication protocol (IBC). Projects pegged or built into the Cosmos Network are able to exchange tokens between each other natively. Think of atomic swaps but for everyone!   Altogether, Cosmos is a network for better interoperability between blockchains of all types. How the Cosmos Network Works Before jumping into what is possible on the Cosmos Network it’s important to first visit what made this achievable, Tendermint. Tendermint Tendermint is a launch pad for building blockchain applications on top of. To understand a bit of what that means, know that there are three conceptual layers to a blockchain: networking, consensus, and the application layer. Tendermint prepackages the networking and consensus layers so that teams can focus on their applications and bypass hundreds of hours of complex code. The basic Tendermint software stack     Tendermint is not a blockchain itself, rather an open-source developers tool. It is a customizable foundation for blockchain applications.   A particular caveat is that Tendermint’s consensus is a proof-of-stake (PoS) algorithm. This can reconfigure to other forms of PoS like a Delegated PoS or Proof of Authority consensus, for example.   Favouring the PoS model is a large part of what enables Tendermint’s interoperability along with instant finality, thousands of transactions per second, and increased security. Connecting the Dots with IBC The next piece in the Cosmos Network is the Inter-Blockchain Communications protocol (IBC). This software links together the zones and hubs within the network and allows the exchange of tokens between heterogeneous chains.   It’s important to note that Cosmos refers to the individual applications as heterogeneous chains. This is because each chain or application within the network has their own sovereignty and layer architecture. In short, this means IBC can connect chains despite each one having their own software stack (rooted in Tendermint) and independent governance.   The main advantage of IBC is the exchange of tokens between chains. Tokens from one chain can be represented on another. Here’s an example, Mia wants to send 25 tokens from chain A to chain B. To do so, Mia’s 25 tokens on chain A lock with a proof sent to chain B. Next, chain B watches to see if more than two thirds of chain A’s validators have signed the proof that Mia’s 25 tokens remain locked on their original chain. When the proof is valid, Mia gets 25 tokens on chain B.   Overall, IBC is the tunnelling and mechanics that allows chains to connect to each other. The Network: Hubs and Zones Now that we’ve covered what Tendermint and IBC have, how does Cosmos actually build an internet of blockchains?   The solution: network hubs.   Hubs on the network act as the central ledgers for each of the individual chains also called zones. Hubs are the ledgers for the token swapping between the zones.   Without hubs in the network, Cosmos would be a series of daisy-chained blockchains. The exchange of tokens between blockchains of this type puts a lot of pressure on trusting the source of the token, in particular, their validators. This issue compounds as tokens move along the network from chain A to chain B to chain C, and so on.  Each time requiring the receiving chain to trust all sets of validators before them exponentially.   Hubs in the network alleviate this by having zones connect to them, instead of directly to each other. If zones limit their connections to only other hubs, then the risk of double spending or tokens being unfrozen is dramatically reduced. Zones do not need to trust other zones directly or the ones that passed on tokens before them. They only need to account for trusting the hubs. A simplified look at the Cosmos Hub and zones The first hub in the Cosmos Network is the Cosmos Hub, a Proof-of-Stake blockchain layered over Tendermint. To fuel the Cosmos Hub, there are two tokens, Atoms and Photons. Cool names aside, the Atom is the staking coin used for governance on the Cosmos Hub. The fee coin in the ecosystem is the Photon, used to move tokens around the network as well as pay fees. The Missing Link You may be thinking up to this point that anything in the Cosmos Network would have to play by the rules of the Tendermint Core. Namely that only PoS blockchains can participate in the network since Tendermint is at the core of each of the zones.   The good news is that the Cosmos team has also been thinking about this and did something about it. To understand what the challenge was, there are two categories of chains that the Cosmos Network defines based on finality.   Firstly, fast-finality chains. These are the easy chains since fast-finality chains are already compatible with IBC. PoS blockchains can use IBC just as Tendermint does and directly connect into hubs and zones.   The less easy chains are probabilistic-finality chains. These blockchains, like PoW chains, are instead layered over a fast-finality consensus like Tendermint Core and create a Peg-Zone. So far the Cosmos Network is going to create an Ethereum Peg-Zone called Ethermint and admits that creating Peg-Zones for every probabilistic-finality blockchain is “theoretically possible” but challenging. About Cosmos Network There’s a bit of a backstory to the Cosmos Network. However, the condensed version is that the network was largely built by the same team that engineered its foundational component, Tendermint Core.   All in Bits, the company behind Tendermint, is now building out the Cosmos network under the umbrella of the Interchain Foundation (ICF). The ICF was founded to help “facilitate the next generation of blockchain technology” with a goal to build an internet of blockchains.   The team working on the Cosmos Network is fairly large and lead by the cofounders Ethan Buchman and Jae Kwon (not at all affiliated with the rapper J-Kwon, sadly).   The Cosmos Hub Atom token distribution Both the ICF and All in Bits have been proposed to receive portions of the Atom tokens on the launch of the main net. The tokens All in Bits and the ICF receive will bootstrap the development of the network and foster its growth over a two-year vesting schedule. Coin Supply and Sustainability For now, the Atom coin will not be tradable until the main net launches. However, the public and private rounds of fundraising have concluded but the token supply is still yet to be decided. The proposed token distribution is 75% for Fundraisers, 10% for the Interchain Foundation, 10% for All in Bits Inc, and 5% for seed investors.   ***Please note that currently traded tokens $ATOM and $CMOS are not tokens native to the Cosmos Network. I would have some caution about trading those two low-cap coins, possible imposters. Conclusion With some time still before the main net launch, Cosmos Network is developing towards their goals and are testing components like on-chain governance within their test net. The ambition of the project is impressive, however, they seem to not be rushing into anything. They are taking the necessary steps to plug together the various components like Tendermint and IBC.   Adoption of Tendermint Core by developers will be vital to the growth of the network. As well as getting other popular coins pegged into the ecosystem.   Overall, the project is still nascent and has lots of pavement left on their roadmap. Cosmos Networks wants to wrangle in the siloed chains of the world into one beautiful internet of blockchains. It’s a lofty goal but might be a vital idea for progressing blockchain into another phase of adoption and usage. The post What is Cosmos Network (ATOM) | A Beginner’s Guide to the Internet of Blockchains appeared first on CoinCentral.
Coin Central

Minter Network (BIP Token): Legit Blockchain Cryptocurrency Project?

What Is Minter Network? Minter is a next generation currency that allows users to create their own coin and set its price. The coin created can be transferred and/or exchanged for other coins instantly and limitlessly. Minter allows the creation of coins that are for use every day, coins that are easily transferable and give value providers the ability to be their own banks. Minter will launch a new cryptocurrency—a Blockchain-Instant Payment (BIP) that will pave way for instant, efficient, and reliable medium of exchange. Minter will aid value providers to create and integrate their own coins into their unique products and services. The minter network will be a platform where the coins created can be exchanged for other cryptocurrencies and with fiat currencies like the USD. Minter Network Transactions The transaction fees on the network are low and do not exceed $0.01. This does not depend on the volume of an exchange or even the transfer transaction. This is because with the thousands of transfers per second, validators make good money despite the commission fees being so low. Minter uses the Tendermint engine on the DPoS consensus algorithm that completes 10,000 transactions every 5 seconds per block. This ensures that there are no delays and no limits or waiting for other confirmations. Just by the press of a button and a transaction is complete. Minter Network Features One of Minter’s features is the ability to exchange any coin with other cryptocurrencies or the USD. This gives the ability to transact anywhere in the world. The currency created can also be used to pay for goods and services, which means that it gives individual coins the ability to be exchanged within the network and outside the network. The unique value put out by different companies and individuals requires different coins deemed fit by their creators. This gives them the ability to dictate the terms of the exchange of value, which, basically, is money. Distribution Roles Validators verify transactions, while users bond their tokens to validators. Bonding is the process by which users entrust or delegate their holdings to the validators. Validators are paid for services in the forms of block rewards or transaction fees. Commission fees are distributed to validators according to their stake. The commission fees are charged per transaction on the Minter network. Delegators are users of the Minter network. They enjoy access to the speed of Minter transactions, the liquidity of coins, the ease of the said transactions, and usability. Coiners are those that issue their own cryptocurrencies. They create coins to achieve their business goals. Each coin will be unique to the coiner and their products or services offered. Minter Apps (MApps) Minter apps (MApps) are applications developed for the Minter network. MApp is integrated into a mobile app or a site. It will let users sign transactions, create, and recreate coins among other features. Minter will enrich common trends with unique features such as open and permissionless networks, transactions that are fast, and creation of coins. Minter Network BIP Tokens Minter network’s native token is called the Blockchain Instant Payment (BIP). The coins created by individual users are backed by BIP reserve. The coins are convertible to BIP or other coins in the network such as bitcoin and Ether.
Bitcoin Exchange Guide

Square Peg in a Round Hole: BizOps in Crypto

Part I: TaxesBusiness models change. When that happens, so should the systems that were built around them. As of now, some of the major systems in place that effect cryptocurrencies, like the legal and tax systems, are stifling new businesses and if they don’t catch up, the North American economy will suffer accordingly.Working at Tendermint, I have realized how difficult it is to work within paradigm changing technology yet be forced to work within the confines of systems of a previous paradigm.In the spirit of the open source ethos, and sharing of ideas, I want to share some of the things I’ve learned to help founders, operators, and those new or experienced in crypto, learn the ins and outs of crypto company operations, but faster and with more guidance. 2017 was the year when companies tried to figure out how to raise money in tokens legally, 2019 and beyond will be about learning how to operate businesses, powered by tokens, in a compliant and tax efficient manner. In this series, I’ll cover some basic operating functions that are wildly different in crypto than your typical start up. These differences will show up in crypto taxes and accounting, decentralized teams and global regulation, and treasury management, to name a few. Part I (where you have landed today), will focus on taxes.Over 200 years ago, the railway industry (one of my favourite historical bubbles) caused a massive shift in how companies operate, moving businesses from sole proprietorship to corporations, allowing for massive economic scale. Companies became much greater than the sum of their parts.For the past few centuries, the corporate structure has fuelled economies worldwide. It has proven to be the most successful playbook and model by which people can profit, remove personal liability, and hire employees. As a result, the business systems of the world have been shaped around the corporate structure. In turn, the tax and legal systems, two major systems that support corporations, have molded and learned how to regulate corporations since the 1800’s.However, as corporate structures change, as people interact and do business differently, the tax and legal structures that support the “how to start a corporation” playbook, are not changing concurrently. As a result, the systems are left to try and catch up to changing times by using “closest metaphors” and “best proxies” to value things they don’t understand.The Complexity of the World’s Tax SystemsI often joke that in the months I have been with Tendermint, I have received a fast-tracked Master’s Degree in International Tax Law. We have 3 offices in different countries (US, Canada and Germany), all which have different rules and regulations. I have learned more over the past months, than I could have imagined about different countries’ tax rules. But, what really stands out is that the legal and tax systems are somewhat misaligned with the reality in which we work. I will focus this post mostly on the tax system (more on legal in future posts). In the U.S., the IRS dictates how you should track crypto transactions, but for anyone who has gone through this process, they know that reconciling business expenses incurred in USD and repaid in crypto is not an effortless task and there is not a lot of software that provides help with this. So, a lot of manual entries happen.Tendermint maintains good records to ensure we are as accurate and up to date as possible, following IRS guidance of tracking pools. But the guidance from the IRS is misaligned, it consistently uses “closest metaphors” that don’t fit the nature of the system we are experiencing.Taxing crypto as ‘property’ as the best proxy isn’t a strong comparable nor is it representative of crypto use. By trying to maintain this complex system — which is nearly an impossible task to get perfectly right — I question the IRS’ ability to manage their own suggested path.Has anyone from the IRS ever tried to manage and record the flow of bitcoin on the blockchain? It’s not trivial!SOS how do I track BTC on the blockchain?Germany has made a strong movement toward crypto tax efficiency by treating crypto as a free flow, similar to fiat, and removing the need to track pools like inventory. So, when you use crypto to pay for expenses, no capital gains need to be tracked and recorded. This removes a massive layer of complexity which bogs down the North American system. If we implemented something like this in North American it would move us one step closer to connecting the paradigm of the current tax system and a potential future system.If I pay an expense with BTC, does it make sense that I have to pay capital gains on that? No, why do I have to pay more to spend money?If I sell crypto for cash and make a profit, does it make sense that I pay capital gains on that? YES!If I transfer a small amount of fair market value (FMV) of BTC to FMV of ETH does it make sense that I have to pay taxes on that? No, I transacted FMV to FMV, there should not be a cost basis.Here are my thoughts: only where the word Cash appears should the exchange result in a tax.If BTC → Business Expense → No taxIf FMV BTC → FMV ETH → No tax (section 1031 like-like right?!)If BTC → Cash → TaxIf BTC → ETH → Cash → TaxAsset MisalignmentThe current tax treatment of crypto assets puts crypto companies in a position of massive asset misalignment. Companies have to pay taxes on anything they transact in crypto, but they don’t necessarily have the liquid fiat dollars to pay the taxes on the transaction in the first place.It is complicated and adds a lot of friction for companies to have these tax consequences. Say you pay a business expense with 0.0005BTC and it’s a taxable event, you have to make a journal entry to record the transaction and note the proper gain or loss recognition. This overhead makes people less likely to transact in crypto, it stifles innovation in jurisdictions with this kind of tax treatment. Ultimately, legitimate and innovative tech companies will be incentivized to relocate to more crypto-friendly jurisdictions other than the US and Canada to develop their paradigm changing technologies. In turn, this will leave North America out of the fold as these new technologies develop.Policy SolutionsThere are ways that the government and policy makers could take a closer look at how new technologies fit operationally into the old paradigm. They can ask what small changes they can make to help align the past and the present.Some simple solutions would be:Remove the need for capital gains tax on small expense payments and like-for-like token transactions to remove the logistical overhead from everyday transactions.Allow companies to pay taxes directly in crypto, so a company is not bankrupted in fiat tax liability by holding and transacting in crypto.Ah we fit the mold a bit better nowUber and Lyft didn’t fit into the legal and operational paradigms when they first launched; cities and states put up fights. But, these companies knowingly kept breaking the law, and they won, forcing a new legal and regulatory paradigm to adjust around them.Instead of attempting to overhaul the old systems all at once, let’s reinvent things one step at a time and examine these new assets with forward looking eyes. Let’s evaluate how we can make small changes that help bridge the systems of old and new and allow new paradigm-shifting companies to work within the established systems more efficiently and effectively.— — —This is Part 1 of a multi part series, if you found this information useful and want to learn more, please leave a clap and a comment and I can expand more on taxes at a later point. If there are other topics you want me to cover, let me know!Square Peg in a Round Hole: BizOps in Crypto was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
Hackernoon

What is Tendermint? | Everything You Need to Know

What is Tendermint?  Tendermint is a low-level protocol comprised of two main pieces: a blockchain consensus engine and a generic application interface. Tendermint Core, the blockchain consensus engine, facilitates the peer-to-peer network and provides a proof-of-stake (PoS) consensus. The Application BlockChain Interface (ABCI), on the other hand, acts as a tool for blockchains to link onto the Tendermint Core protocol. The purpose of Tendermint is to be a blockchain engine. It’s meant to be a tool that developers can use to skip the nasty and technical cryptography and jump into the higher level blockchain and application development. Tendermint Core Tendermint Core is a packaged open-source piece of software made of two main parts. Chiefly, a Byzantine Fault Tolerant blockchain consensus engine. Secondly, a p2p networking protocol. A General’s Consensus Baked into Tendermint’s consensus algorithm is the fundamental concept of Byzantine Fault Tolerance (BFT). In order to understand BFT, it’s necessary to have an overview of what it’s solving: the Byzantine Generals Problem. A long time ago a handful of generals and their armies were trying to attack a city. To defeat the city all the generals needed to attack at the same time – any less than full participation would mean the generals would lose. The issue is that none of the generals could reliably know when to attack the city. They were all secluded to each side of the city and communications between them were impossible to synchronize. Messages could be lost, corrupted or forged. The Tendermint Whitepaper by Jae Kwon The challenge that faced the generals is compounded exponentially when more people or messages are factored in. Tendermint’s BFT Proof-of-Stake allows for one hundred validators to quickly and securely confirm their ledgers against each other. In other words, all validators know when to attack the city. A BFT Proof-of-Stake algorithm overcomes the Byzantine Generals Problem by using a partially synchronous network model. Basically, this means that the generals surrounding the city – or the validators voting on a block – don’t need to act at a preset time. Blocks are not voted on a schedule or predetermined size. Tendermint achieves this by first randomly assigning validators the right to propose a block. After blocks are proposed, validators vote in a multi-round deterministic process. Meaning, the first step is fairly indiscriminate and the second follows a prescribed order. With Tendermint, validators are rotated on a deterministic weighted round-robin format. The more stake a validator has, the more times they may be elected as a leader. Currently, the protocol is capped at one hundred validators, however, it’s possible to increase the number of validators if needed. The Applications Blockchain Interface Stacked on top the Tendermint Core is the Application BlockChain Interface (ABCI). The ABCI is a Byzantine Fault Tolerant replicator of applications written in any language. You can replicate your blockchain applications written in C++, Python, Solidity, or any other language onto a prefab BFT blockchain engine. The ABCI is the translator, wrapper, and socket between blockchain applications and the Tendermint blockchain engine they sit on. Tackling the Monoliths Layering ABCI on top of the Tendermint Core is a key step towards lowering barriers of access around developing with blockchains. Most blockchain systems have a monolithic architecture, often restricting the languages that can be written atop them. For example, the Ethereum Turing-complete bytecode virtual-machine limits you to languages that are downward compatible with bytecode. Currently, that’s only  Serpent and Solidity. In contrast, the ABCI allows for any programming language to be stacked above and still be fully compatible with the underlying Tendermint Core engine. Developers don’t need to follow the single monolithic stack of the blockchain they choose. Instead, they can focus on the application logistics and remain virtually blockchain agnostic. The Cosmos Ecosystem including Tendermint The Future of Tendermint is in the Cosmos The creators of the open-source Tendermint have implemented a much larger project called Cosmos. Engineered to be an internet of blockchains, Cosmos networks together Tendermint based applications. An interesting part of Cosmos is that applications do not have to originally be built on top of Tendermint to work within the Cosmos ecosystems. Cosmos takes advantage of Tendermint’s application replicator by hard-spooning existing blockchains onto Tendermint Core. Tendermint is not only a breeding ground for modularized blockchain apps but a blockchain cloning machine, too. Just for further clarification, here’s how Jae Kwon, founder of Tendermint, describes a hard-spoon. “Hard spoon: a new chain that takes into account state from an existing chain; not to compete, but to provide broad access.” – Jae Kwon A few prominent projects looking to hard spoon their way over to Cosmos are OmiseGo, 0x, and FOAM. Each project’s token will then exist on top of Tendermint, then linked to the Cosmos network of blockchains. Conclusion Tendermint Core and ABCI together make up Tendermint – an open-source blockchain engine for developers of any programming language to build onto. Tendermint shifts developers focus away from the low-level cryptography and onto the application layer. An analogy of what Tendermint is to blockchain would be to compare it to an artist’s canvas. You can express an endless number of ideas on canvas, yet a modern artist rarely needs to think about building and developing their own. Tendermint, like a canvas, is the foundation on which you can invent endless blockchain applications. The post What is Tendermint? | Everything You Need to Know appeared first on CoinCentral.
Coin Central

Better, easier, and decentralized betting with Bettex.bet

The online gambling industry, with a capitalization of more than $50 billion and rising, had spurred the growth of an industry in a short amount of time. They offer a much better alternative for gamblers, such as higher odds for winning when compared to bookmakers, and practically an unlimited bet size. However, they are facing a lot of problems currently, as payment systems today are not sufficient for the money flow of gambling due to regional limitations and high banking fees. There are also issues of the verification of the identities of the gambler. There is yet to exist a solution which will fulfill the needs of the market while solving this problem. Or is there? Enter Bettex, which promises a better betting experience for everyone involved. Bets made with Bettex will become more available, reliable and secure, and eliminate multiple problems faced by the gambling industry while doing so. Bettex is a decentralized betting exchange on the blockchain, which utilizes its own currency, Bettex Coin [BTXC] as a means of payment. Bettex will solve the different fraudulent activities and various problems such as processing problems, fault tolerance problems, private access problems and the problem of lengthy time verification. Moreover, a risk is undertaken by many betting companies by using third-party organizations for account balance concerns. This is due to Bettex’s inbuilt payments solution, Bettex Coin. Bettex is comprised of two parts, namely the Bettex, decentralized betting exchange, and Bettex Coin. Bettex blockchain: The Bettex decentralized betting exchange itself will be based on the BigChainDB protocol. The protocol combines the upsides of both blockchains and traditional distributed databases. It has been integrated with Tendermint by the Bettex team, which allows BigChainDB to allow for blockchain specific features such as internode networking and Byzantine Fault-Tolerant Consensus. BigChainDB also allows for the integration of existing technology into its architecture through a decentralized stack. This allowed the Bettex team to integrate the Bettex Coin into the system. The consensus program enforced by Tendermind ensures that the Bettex blockchain has a throughput of thousands of transactions. Bettex Coin [BTXC]: BTXC is the primary way of moving value across the Bettex ecosystem. It utilizes a Proof-of-Stake Consensus protocol and is based on the Xevan algorithm. It has a ‘masternodes’ flavor of Proof-of-Stake. The masternodes are a decentralized network of nodes that are supporting the Bettex Coin. They perform important network functions such as processing transactions and providing security for the network. They receive a block reward for every block that is mined by them, and any wallet with more than 5000 BTXC is eligible for being a masternode. The coin itself is a fork of PIVX, which is capable of performing fast transactions with low transaction fees. This makes it a natural fit to solve the problems associated with today’s gambling industry problems. The coin is featured on many cryptocurrency sites such as Blockfolio, CoinGecko, CoinMarketCal, LiveCoinWatch, Delta, WorldCoinIndex, and Stakes and Nodes. Moreover, it has also been listed on exchanges such as Graviex, Crex24, and My Crypto Trade. The token is going to be listed on Crypto Bridge soon. AMBCrypto reached out to Bettex to clarify the specifics of the product. What are you aiming to do to drive adoption of Bettex? We are working hard on our project. The main and the most important thing, in my opinion, is the implementation of the roadmap because in the crypto world this is the only thing which can give you an opportunity to build a community which will believe in your project and invest in it. We will listen to our community and plan to develop our project with the quality product. Listing our coin to new exchanges is also a very important success factor. Do you plan any integration with existing players in the space? We don’t plan to integrate our coin with other platforms so far. Bettex coin was created as the main currency for the decentralized betting exchange – Bettex. What drove you to create the project? Blockchain technology has been developing very fast and permeates all spheres of life. At present, there is no project based on independent blockchain technology in betting. We’ve assembled a team of experts in various fields to solve this problem. You can find more information about our project in the White Paper. How will the value of BTXC be ensured? The price of our coin depends on demand, appears in case of interesting and unique projects. I am sure our betting exchange will be desired, so demand will be created on Bettex. The limit on the Bettex coin emission is up to 50 million. We are building a real project, we don’t sell air. Everyone who wants to join us can buy coins and run masternodes or POS mining and get percent immediately. What are the major tie-ups that you are planning to provide betting opportunities to your consumers? We will eliminate several problems of the gambling industry by using the basic crypto industry concepts in “Bettex project”. This includes: Different fraudulent activities Processing problem Fault tolerance problems Private access problems Lengthy time verification The risks of using third parties to replenish the account balance and storing their funds in third-party companies. What is your stance on censoring unfair or immoral bets on your platform? We prefer to not use the word “platform” but rather use our own terms, “Bettex coin” and our very own decentralized betting exchange “Bettex”. API is a big contributor, with most of our events coming from reliable source via that channel. Our main focus is to focus on professional betters, people who actually make money betting on sports and other events. Betting integrity is ingrained in our system with a mission to bring innovative and revolutionary solutions from blockchain and cryptocurrency world to traditional centralized betting exchange market and make it more profitable and open. The post Better, easier, and decentralized betting with Bettex.bet appeared first on AMBCrypto.
AMBCrypto

Tendermint: Blockchain Consensus Project Cosmos Network?

Tendermint is used to replicate an application on many different machines in a secure and consistent way. This is very important because Tendermint works even if 33% of the machines fail in arbitrary ways. In this situation, all the non-faulty machines see the same transaction log and compute the same state. Secure and consistent replication is a very fundamental problem in distributed systems. This plays a very important role in the fault tolerance of several applications. We can mention currencies, elections, infrastructure and many other systems in different fields. The Byzantine fault tolerance (BFT) is related to the ability to tolerate machines that fail in arbitrary ways, even if they become malicious. The BFT theory has several years, but it has been applied to software in the last years and became known after being used by blockchain technology. Tendermint is built by a blockchain consensus engine and a generic application interface. The consensus engine is known as Tendermint Core and it controls that the transactions are recorded on every machine in the same order. The app interface is called the Application BlockChain Interface (ABCI), and it enables transactions to be processed in different programming languages. Compared to other systems, Tendermint has been designed to be easy to use and simple to understand. Tendermint is similar to other classes of software: distributed key-values stores, such as Zookeeper, etcd and consul, and blockchain technology, including cryptocurrencies. What About Zookeeper, etcd and Consul? Zookeeper, etcd and consul are related to a key-value store atop a BTF consensus algorithm. At the moment, Zookeeper is using a version of Paxos called Zookeeper Atomic Broadcast. Instead etcd and Consul use the Raft consensus algorithm. A cluster contains between 3 to 5 machines and is able to tolerate crash failures in up to ½ of the machines. However, a single Byzantine fault is able to destroy the system. In sum, Tendermint is Byzantine Fault Tolerant, so that means that it can tolerate up to a 1/3 of failures. And these failures are able to include an arbitrary behaviour (including hacks and other similar attacks). Additionally, it does not specify a particular application, it focuses on arbitrary state machine replication. Furthermore, Tendermint has emerged with Bitcoin, Ethereum and other virtual currencies. The goal is to provide a more efficient and secure consensus algorithm than the one that Bitcoin (BTC) is using. Bitcoin uses a Proof of Work algorithm, also known as PoW in which miners process transactions. Tendermint, has evolved to be a general purpose blockchain consensus engine that has been created to host arbitrary application states. It can be used as a plug and play replacement for consensus engines of other blockchain software. That means that it is possible to take the Ethereum code base and run it as a ABCI application that uses Tendermint consensus. Other Blockchain Projects Fabric works in a similar way to Tendermint but it requires all application behaviour to run in potentially docker containers known as ‘chaincode.’ It is possible to use this docker-based behaviour as a ABCI application in Tendermint. Another blockchain project is Burrow and an implementation of the Ethereum Virtual Machine and Ethereum transaction mechanics. But it is important to mention that it has additional features such as name-registry, permissions and native contracts. ABCI General Overview All blockchains have had a monolithic design. Each blockchain stack is a single program that is able to handle the concerns of decentralized ledgers. This includes P2P connectivity, the mempool, and more. Using a monolithic architecture makes it difficult to reuse components of the code. If there is an interest of using it, then there would be complex maintenance procedures for forks of the codebase. But this is not the only problem experienced by monolithic designs. It limits the user with the language of the blockchain stack. Tendermint works in a different way, they work by decoupling the consensus engine and P2P layers from the details of the application state of the particular blockchain app. What Is ABCI? In order to understand how Tendermint Core works, we need to make an analogy with Bitcoin. The famous virtual currency works with nodes that that maintain a fully Unspent Transaction Output (UTXO) database. If instead, a person wants to create a Bitcoin-like system using ABCI Tendermint Core, it would have to share blocks and transactions between nodes, and establishing a canonical / immutable order of transactions (blockchain). Additionally, the application would have to Maintain the UTXO database, validate cryptographic signatures of transactions, prevent transactions from spending non-existent transactions and allow clients to query the UTXO database. In this way, Tendermint is able to decompose the blockchain design and offer a very simple API between the application and consensus process. The ABCI has 3different types of message that are delivered from the core to the application. The most important message in the app is the DeliverTx. Each of the transactions in the blockchain are delivered with that message. The CheckTx message is similar to the DeliverTx, but it only works for validating transactions. The mempool used by Tendermint Core check if the transactions are valid or not with the CheckTx and then relays the valid transactions to its peers. Another message is known as Commit, that is used to compute a cryptographic commitment to the application state. For example, an inconsistence in updating that state will appear as blockchain forks and catching whole class of programming errors. Determinism Is Important It is important for blockchain transaction processing logics to be deterministic. If they are not, then consensus would not be reached among the nodes. Solidity, the language used on Ethereum’s network is a completely deterministic programming language. But it is also possible to create deterministic apps using other languages such as Java or C++, among others. It is important to avoid sources of non-determinism such as the following: Random number generators (without deterministic seeding) Race conditions on threads (or avoiding threads altogether) The system clock Uninitialized memory (in unsafe programming languages like CorC++) Floating point arithmetic Language features that are random Consensus In this article we explained that Tendermint is an easy-to-understand, BFT consensus protocol. The participants are known as validators and they take turns proposing blocks of transactions and voting on them. In order to commit a block, two stages of voting are required. If a block is committed it means that it has more than 2/3 of validators that pre-committed for the same block during the same round. Some validators may fail to commit a block for different reasons. For example, the proposer may be offline or the network may be working slow. And Tendermint allows them to establish that a validator should not be taken into account. If one-third of the validators are Byzantine, then Tendermint is able to guarantee that the safety will never be violated. Stake Not all validators will have the same ‘weight’ in the consensus protocol. We are indeed thinking about proportions of the total voting power, something that may not be distributed in a uniform way across the individual validators. Additionally, Tendermint is able to replicate arbitrary applications. It is possible to define a currency and denominate the voting power in the same currency. The system is then known as Proof-of-Stake (PoS).
Bitcoin Exchange Guide

CEO of World’s Largest Exchange Binance Says Coinbase and Gemini Are not Competitors

Changpeng “CZ” Zhao sat down with an interview with Fortune Magazine to talk about Ledger's, the future of cryptocurrency and the exchange’s relationship with Coinbase. Some of the prominent topics covered in the discussion are listed below. On if specialized blockchains will overthrow the current market leaders. When it comes to dApps, Tezos, EOS, and Dfinity believe that they can overthrow Ethereum, as they promise faster and more efficient protocols. Zhao thinks otherwise. In his opinion, none of these contenders stand a chance of long-term success, as they are too slow. This might have been long leveled at Ethereum, but CZ isn’t convinced. He says that any blockchain that is designed for general smart contracts will not be swift enough. He firmly believes that the existing blockchains will surrender the field to more specialized ones. His vision is of a future consisting of many custom ledgers designed for specific purposes. He mentions tools like Komodo and Tendermint, which can create just such custom blockchains. On Binance’s move to Malta CZ made a prediction for the future, saying blockchain-based messaging, games, social networks and rating systems will emerge due to higher privacy because of decentralization. Moreover, he believes e-commerce will also move into decentralization. This seems to be the reason for Binance to move into building a financial system which is decentralized in its home country of Malta. This also includes the vision of building a community bank with a decentralized global operation. He revealed that he preferred working in a country such as Malta, where he can interface directly with one of the heads-of-state. The main aim is to “lay the groundwork” and to “promote the ideals of a decentralized financial system”. On competition with Coinbase The crypto billionaire is quite open about other cryptocurrency exchange platforms, one of them being Coinbase. CZ believes that the sea is vast enough for any crypto platform to fish and does not see the need for unhealthy competition. According to him, developed countries can be a bit problematic. Expanding on this point, he said: “In developed markets, there’s more money to be made but more regulation and it’s saturated with competition. We don’t want to compete with Coinbase and [Winkelvoss-owned] Gemini. The strategy there requires lots of lawyers and lobbying.”
Bitcoin Exchange Guide

Binance CEO: Ethereum and EOS Will Be Too Slow to Succeed in the Long Run

https://dailyhodl.com/2018/08/02/binance-ceo-ethereum-and-eos-will-be-too-slow-to-succeed-in-the-long-run/ “While this criticism has long been leveled at Ethereum, CZ says any blockchain designed for general smart contracts (as the current competitors are) won’t be swift enough. Instead, he thinks the existing blockchains will cede the field to more specialized ones. CZ cited newer tools like Komodo and Tendermint that make it possible to write blockchains for specific purposes, suggesting the future will consist of numerous bespoke ledgers.” Komodo has already proven over 20K Transactions Per Second and is about to test considerably higher this month.
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Prosecutors Call for Ten Year Jail Term for Karpeles Over Mt. Gox Embezzlement

Mark Karpeles, the CEO of Mt Gox, is currently being accused of embezzlement by Japanese authorities. The prosecutors of the court case are seeking a 10-year sentence for the ex-CEO, which commanded the now-defunct Mt Gox exchange. This comes in the midst of the extension announced for civil rehabilitation claims. Japanese prosecutors say as much by alleging that Mark Karpeles's actions "played a great role in totally destroying the confidence of Bitcoin users. The actions in question are that he allegedly embezzled a total of 341 million yen (US$3 million) of customer funds from the Mt Gox account, moving it to his personal account between September and December 2013, while padding the numbers on his company's trading system to cover up the loss. Karpeles has sworn his innocence and says the money, moved in the last four months of 2013, was meant to serve as only a temporary loan. He also argued, earlier in the trial, that the funds in question did not belong to clients but were his now-defunct company’s revenue. In response to the former CEO’s statement, the prosecutors at the court said: There was no documentation of loans, and there was no intention of paying back the money. The prosecutors went further to demand a harsh sentence for Karpelès. According to the Japanese prosecutors, the Mt. Gox Chief betrayed his clients’ confidence and misused most of their funds. The ex-CEO is currently confined to Japan as a condition of his bail and has been answering in freedom. He has often protested his innocence and publicly appealed to the industry. It remains unknown when the trail will conclude, the publication added.
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Tezos [XTZ] Story – XTZ and Waves Highest Gainers

As many crypto enthusiasts have started to notice, there is a slight attempt by the bulls to get Bitcoin – BTC against the US Dollar up back on its feet. Read: Bitcoin (BTC) Price Analysis: Are Bulls Back on Their Feet? Bitcoin bull Mike Novogratz insists that bitcoin won’t fall to the $80 level despite signs that the bear market could persist. In an interview with Bloomberg, he reiterated that bitcoin will become digital gold and that revolutions don’t happen overnight. If the supportive trend line starts to gain momentum and hold-off any waves of bears that tend to tank the value downward, a ripple-effect could present itself impacting all following altcoins as the pioneer cryptocoin always does. Among the top 20, the highest gainer in the last 24-hours without a doubt is Tezos [XTS]. Per time of writing, the pair XTS/USD is changing hands at $0.4197 – marking an increase of 13.23%. Source: coinmarketcap Tezos for starters – During one of the most successful and largest ICOs ever held – Tezos Foundation raised over $232 mil bringing a new cryptocurrency in the market. During a contact made by Reuters to the president of the foundation it was confirmed that its MainNet was set to launch on the 14th of Sep, 2018. #Breaking @millervalue #ValueInvesting #Crypto #Bitcoin #Cryptocurrency project #Tezos to launch main #network next week:… https://t.co/nqOY185XCh — John M. Spallanzani (@JohnSpall247) September 14, 2018 What is Tezos (XTZ)? Tezos is a decentralized computing platform for Turing-complete smart contracts. Tezos has three key features. (1) “Liquid Proof-of-Stake” consensus – there is a relatively low barrier to consensus participation and delegation is not required. (2) Smart contract verification – Tezos invented the Michelson programming language that allows formal proofs of contract properties for better contract security. (3) On-chain governance – all aspects of governance are contained in the platform: voting on proposed protocol upgrades, paying developers and implementing the upgrades. – Via Kraken’s blog post – Kraken Listing XTZ Blog Post Right on its tail is Waves which is welcoming a daily price hoist of 10.01% against the US Dollar reaching the mark of $1.85. Its beginning of December price surge as it seems is still continuing. The reason for this trend was the recent announcement of the release of a significant update to the mobile wallet. We are excited to announce a long-awaited update of the #Waves Mobile app! Deposit, store and withdraw your #crypto securely, trade your assets on DEX, lease your $WAVES — everything is now available right on your smartphone! Read more about it here: https://t.co/5Qp7YKTa8r pic.twitter.com/y5hsCXj2GV — Waves Platform (@wavesplatform) December 3, 2018 The post Tezos [XTZ] Story – XTZ and Waves Highest Gainers appeared first on Ethereum World News.
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