Vitalik Buterin

Сo-founder of Ethereum Active since 2011.

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Proof Of Stake Can Make Blockchains More Than 1000 Times Efficient Says Vitalik Buterin

In a lengthy Twitter thread, Vitalik Buterin, the co-founder of Ethereum said that sharding basd proof of stake algorithms will make blockchains 1000x more efficient. 9. Blockchains of the future with proof of stake and sharding will be thousands of times more efficient, and so the efficiency sacrifices of putting things on a chain will become more and more acceptable. — Vitalik Non-giver of Ether (@VitalikButerin) December 10, 2018 Sharding In Blockchain Sharding is a concept that’s widely used in databases, to make them more efficient. A shard is a horizontal portion of a database, with each shard stored in a separate server instance. This spreads the load and makes the database more efficient. In case of the blockchain, each node will have only a part of the data on the blockchain, and not the entire information, when sharding is implemented. Nodes that maintain a shard maintain information only on that shard in a shared manner, so within a shard, the decentralization is still maintained. However, each node doesn’t load the information on the entire blockchain, thus helping in scalability. The pos algorithm has specific, designated nodes that take transaction validation responsibility. These nodes are called ‘stakers’, for, they stake some of their crypto tokens for transaction validation. Upon successfully validating a transaction, the stakes may earn part or whole of the transaction fees. The more crypto token a staker stake for transaction validation purpose, and the longer the duration of the stake, the higher is the number of transactions the node gets to validate. Wider adoption of sharding requires the blockchain and crypto developers to work on an important area. While communication between nodes within a shard is smooth, inter-shard communication is currently not easy and requires the development of a separate protocol. Addressing this key requirement will potentially result in a wider adoption of sharding, and that’ll help blockchain more scalable with higher transaction throughput. PoS in Ethereum Earlier Vitalik had said: “ It's really important to mention that validators are super-frequently reshuffled between shards (possibly even once per block), so it's actually quite hard to “target” one specific shard for an attack. This is a large part of where sharding's at least theoretical success in breaking the trilemma comes from.” Sharding is a smart approach to tackling the blockchain scalability problem. However, it’s not without its drawbacks. Because of its structure, it’s easier to compromise a shard within the system. This is one of the driving reasons behind Ethereum’s switch to Proof Of Stake. Proof Of Stake also helps mitigate this security vulnerability that comes with Sharding.
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Ethereum’s [ETH] Vitalik Buterin talks about non-financial applications of blockchain in a tweetstorm

Vitalik Buterin, the co-founder of the third largest cryptocurrency, Ethereum, went on a tweetstorm about non-financial applications for Blockchains. Ever since Bitcoin’s success as the first cryptocurrency, less and fewer people focus on the financial blockchain applications, so the non-giver of Ether, himself decided to list the use cases of the blockchain. Vitalik realized the fact of people being half-informed on the applications of blockchain and took to his twitter to share examples of security and application of blockchains. Buterin’s tweetstorm was 15 tweets long and touched base on possible uses of Blockchain, with an interesting session on a debate between crypto enthusiasts. Vitalik starts the thread by introducing the aspects of blockchain improving along with the scalability, user experience and eventually impacting the fees. According to Vitalik, these things may have a great impact on the industry. After this, Buterin explained the under-appreciated way to view blockchain. Buterin stated: “One underappreciated way to view blockchains is as an extension of cryptography that does different things. Cryptography allows you to encrypt data, prove data was signed by someone, etc etc…. blockchains OTOH allow you to prove that a piece of data was *not* published.” Buterin explained how blockchains could be used in a wide range of cases with verification. Buterin explained the cryptographic aspect of blockchain and how it can be used to check the validity of any transaction. He cited another example of using blockchain technology for cryptographic verification even for a University degree verification application, “key revocation in self-sovereign identity”, and verifying the integrity of bids while an auction. Source: Twitter After explaining the use cases of blockchain technology, Vitalik went ahead by explaining the future of blockchains. The non-giver of Ether explained the importance of public blockchains and step to make them more practical. Buterin tweeted: “Public blockchains have a genuine competitive advantage over both centralized servers and consortium chains in credibly signaling neutrality. Right now it seems like benefits like this might not be worth the costs of public chains, but that’s just the public chains of today…” Buterin continued that proof of stake and sharding will be more efficient so adding more things on-chain will be acceptable. Buterin like other points, explained this too with an example of blockchains becoming so efficient. He forecasted the receipts to everyday purchases being available on blockchains. He claimed that blockchain will become the easiest tool for achieving “guarantees of verifiability, non-double spending, etc.” Towards the end, Buterin appealed to the crypto enthusiasts to take non-financial blockchain applications more seriously as they would be able to make way for a better financial implementation of the blockchain technology. “Non-financial applications have a leg up over financial ones in one important sense: there is less at stake if they break, so fewer reasons to fear deploying them fairly quickly. So they could be the first applications deployed widely, especially in institutional contexts.” The post Ethereum’s [ETH] Vitalik Buterin talks about non-financial applications of blockchain in a tweetstorm appeared first on AMBCrypto.
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Vitalik Buterin: Proof-of-Stake, Sharding to Make Blockchains ‘1,000x’ More Efficient

Vitalik Buterin: Proof-of-Stake, Sharding to Make Blockchains ‘1,000x’ More Efficient Ethereum (ETH) co-founder Vitalik Buterin declared that future blockchains with sharding based on proof-of-stake (PoS) will be “thousands of times more efficient,” in a lengthy Twitter thread Dec. 10. In the long series of tweets, Buterin addressed non-financial applications of blockchain technology. He stated that […] Cet article Vitalik Buterin: Proof-of-Stake, Sharding to Make Blockchains ‘1,000x’ More Efficient est apparu en premier sur Bitcoin Central.
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Vitalik Buterin: Blockchains of the Future Will be Thousands of Times More Efficient

Vitalik Buterin, Chief Scientist at the Ethereum Foundation, has stated public blockchains will become thousands of times more efficient than now. In a public statement to his 800,000 Twitter followers,... The post Vitalik Buterin: Blockchains of the Future Will be Thousands of Times More Efficient appeared first on Trustnodes.
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Vitalik Buterin on Twitter: “Non-Financial Blockchain Apps Have a Leg up on Financial Applications”

Blockchain technologies have long been associated with financial application as the main use of the revolutionary technology. Cryptocurrencies strengthen this narrative as they continue leaving an impact on the global financial systems today. Notwithstanding, the bullish and bearish momentum of the industry at large has put blockchains on focus as a currency based industry. This rhetoric has however been argued out differently by one of blockchain’s most proficient personalities, Vitalik Buterin, Founder of Ethereum. In a series of tweets published on Monday, Vitalik offered his view on the non-financial applications of blockchain technology. The comments and replies from equally enthusiastic blockchain stakeholders made the discussion even more interesting. “Non-Financial Applications Vs The Financial Applications” In the fifteen tweets by Vitalik Buterin coupled with a few replies to comments made by other enthusiasts, one point is made clear, “Blockchain technology is more than the financial aspect.” Other than offering the user a fast, secure and cheap means to transact money on a decentralized peer-to-peer network, blockchain offers a lot more. Vitalik tweetstorm on Non-Financial application of Blockchain Non-financial applications on blockchains can be applied to various industries including healthcare, identity management, artificial intelligence, supply chain management and automobile industry etc. The founder of the first smart contract platform said that the improvements seen in the user experience and fees play a big role in promoting non-financial application of blockchains. He continued stating that the verification aspect of cryptography offers various industries, especially the data driven, benefit greatly by offering valid data. He said, “One underappreciated way to view blockchains is as an extension of cryptography that does different things. Cryptography allows you to encrypt data, prove data was signed by someone, etc etc…. blockchains OTOH allow you to prove that a piece of data was *not* published.” On the practicality of using blockchain, he gave an example of a university degree verification app. On the app, a degree is certified with just a digital signature, but revocations are put on chain. With cryptography alone it is impossible to check that a revocation was not signed. This problem is solved using blockchain technology you simply check the entries on the chain as they are immutable. Notwithstanding, blockchains can also be useful in an auction to ensure no late bids were submitted. The Future Of Blockchain In Non-Financial Applications The technology is entering its teen years where exceptional growth is expected to happen as better blockchains are built and existing ones improved. Looking at future blockchains, scalability issues will be solved using sharding and proper functional governance systems established using Proof of Stake (PoS) according to Vitalik. He tweeted, “Blockchains of the future with proof of stake and sharding will be thousands of times more efficient, and so the efficiency sacrifices of putting things on a chain will become more and more acceptable.” On centralized servers and the dangers they pose to data verification, Vitalik offered blockchain as the ready solution claiming the latter “have a genuine competitive advantage” over the consortiums and centralization. Blockchain immutable structure offers it permanence and discourages records from being tempered with. 2Vitalik Buterin on institutions deploying non-financial applications on blockchain In his concluding tweet, Vitalik urges the blockchain enthusiasts to embrace the non-financial application of blockchain as much as they do the financial applications. (All images from Twitter)
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Vitalik Buterin news by Finrazor

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This week twitter-community is waiting for the BCH fork, reading Vitalik Buterin and expressing opinions... — nothing uncommon, but quite lively

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Algorand is a new cryptocurrency and consensus protocol. Its two core technologies are the binary Byzantine Agreement and cryptographic sortition. Algorand’s main difference from other proof-of-stake systems is the absence of economic incentives for network participants, hence the viability of Algorand is currently a subject to wide debate in the community

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Crypto Bear Market is So Bad That an ICO is Day Trading its Holdings

Every day, the crypto market is on the verge of entering darker territory, and as prices continue to plunge, many cryptocurrencies have become the victims of sudden sell-offs. An initial coin offering (ICO) called Substratum has even taken to day trading its present ether holdings to make up for potential losses. In a YouTube video, a figure named Justin from the Substratum network announces that the company is opening the doors to a token swap set to begin on Monday, December 17. The smart contracts for the company will begin then and batch transactions will start happening over the Ethereum network. Old Crypto Becomes New Crypto Prior to this date, executives will be moving any remaining Ethereum tokens in their crowdsale wallet over to a new wallet. If a person’s tokens are on Binance, the switch will be occurring natively through the exchange. Thus, customers will not need to worry. If a customer’s tokens are locked up in a wallet for an airdrop, they too will not need to take any steps. The move from the present wallet to the new wallet will occur on its own time. All older tokens will become frozen and unusable while the new tokens will be transferred into customers’ wallets. The company is also moving from two decimal places to 18 decimal places, which representatives claim will make transactions faster and more efficient. The smart contract has been fully audited by Quantstamp; furthermore, 120 million old tokens have been burned thus far. They will not be coming over through the transfer but will rather disappear into what Justin calls “the ether.” These tokens are set to disappear completely. The transfer will not be done within a set timeframe. The transfer is indefinite and will last until all customers’ wallets have received their new tokens. Predicting What the Future Holds Substratum now has a full-time trader on staff, who has suggested that Ethereum is going to be continually tested over the coming months. The bear market is not letting up and he has stated that Ethereum could fall to as low as $60. Executives are not necessarily looking to cash out. Instead, they will be trading only a portion of the Ethereum they possess, which they claim will give them the chance to “trade up” and potentially earn a little revenue before the crypto market falls any further. Once the market becomes bullish again, Justin claims in the video that Substratum will be in a better place and will be able to create newer (and better) products. Do you foresee the market getting even worse before it gets better? Post your comments below. Image courtesy of Shuttershock The post Crypto Bear Market is So Bad That an ICO is Day Trading its Holdings appeared first on Live Bitcoin News.
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States Take Cryptocurrency Regulation Into Their Own Hands As US Federal Government Focuses On Blockchain

States Take Regulation Of Cryptocurrency In Their Own Hands, As US Federal Government Focuses On Blockchain Technology The regulation of cryptocurrency has been an ongoing problem for the United States (US). They have managed to outline particular processes involved with blockchain technology and have many trials that examine the way that it works in their industries. However, the fact that even government authorities have different classifications for the same token groups makes it hard to know how to handle them. As a result of the confusion, any states are working to become the friendliest places for cryptocurrency. Ohio even made an announcement recently that they would allow their residents to cover taxes with the use of crypto payments. In the meantime, the authorities are still in a state of confusion with defining and regulating the assets that clearly are in demand for residents. The ones making the most noise about the lack of organization of the federal policies aren’t stakeholders or even enthusiasts; these concerns also involve academics. Carol Goforth, a professor at the University of Arkansas, recently noted that there are presently four different regulators within the federal government that oversee how digital assets are dealt with, from their categorization to their issuance, and further. These four entities are the: Commodity Futures Trading Commission (CFTC) Securities and Exchange Commission (SEC) Financial Crimes Enforcement Network (FinCEN) Internal Revenue Service (IRS) The CFTC sees crypto assets as commodities, though the IRS shares a similar view in calling them property. The FinCen, which is run by the Treasury Department, regulates them with the same rules as fiat currency, but the SEC sees them much differently as securities. Professor Goforth expressed her skepticism that the regulatory entities would work together anytime soon, leading her to encourage the coordination between them for a more nuanced approach. As she puts it, her version of the rules would force the federal government to deal with each cryptocurrency as it is introduced, specifically identifying them by their functionality and the motivations of users. This is a path that at least one instance shows is happening within the federal regulators. The CFTC publicly requested details on the functionality of Ether and the Ethereum Network on December 11th. The document has 25 different questions that deal with the platforms purpose, functionality, scalability, and more. However, the effort to address a single asset by the CFTC isn’t necessarily a sign that the industry is turning towards the idea that the professor had in mind. None of the other regulators have taking this move and are holding on to the regulatory measures that they already have in line. Still, there’s always a chance that congressional legislators will make some changes in their framework. Darren Soto and Ted Budd, who are both US Representatives, brought in two bills on December 6th that will help with the improvement of regulatory framework and reduce the risk of price manipulation. These bills are called the Virtual Currency Consumer Protection Act of 2018 and the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018, respectively. These two bills offer specific regulatory changes that could be made for the process to be smoother for exchanges, users, and everyone else involved. The first bill discusses that many situations that can arise in the market for price manipulation. The other requests an in-depth study that aims to improve the “burdensome regulations that may inhibit innovation.” Warren Davidson, the representative of Ohio, spoke at a conference in Cleveland where he noted his intent to bring in a new bill that would create a new asset class for tokens. As such, the regulation of initial coin offerings (ICOs) would become significantly less difficult. A week later, Davidson suggested a crowdfunding event to help with the creation of the US-Mexico border wall, which would include the use of blockchain and “wall coins.” Even though there appears to be a significant lack of clear regulations regarding cryptocurrency, blockchain technology is already being applied to daily operations. The use of this ledger with supply chain logistics is easily its biggest application, and federal authorities are looking to use it for food safety as well, especially considering the recent E. coli outbreak. The Department of Homeland Security announced their intention to use the technology as a way to protect their own activities. Their three subsidiaries are working together for a clear record of documentation that will help with fraud, counterfeiting, and forgery. The defense authorities for the federal government recently established an app that would help the members of the armed forced to learn how to use blockchain technology for the supply chain as well.
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Bitcoin Supporter Says Crypto is Unconfiscatable as Long as It’s Not in Regulated Exchanges

Bitcoin has many different features, but one of the most important is the fact that users are the real owners of their funds as long as they keep their private keys. However, when users have their funds stored in exchanges, Bitcoin can be confiscated. During a Q&A session during a Tampa Meetup, he said that Bitcoin being non confiscatable applies to exchanges that are not regulated. In general, centralized virtual currency exchanges are not a safe place where to store funds. The company behind the exchange is able to manage the funds as it considers, block some accounts and even experience security issues. If Bitcoin wants to remain non confiscatable, the best what a person can do is to store them in cold storage wallets. No one is able to move the funds from there unless they have the private keys. At the same time, he said that Bitcoin does not have just a single price because there are different markets listing it. He compared the price of Bitcoin (BTC) with Apple stock explaining that Apple’s stock price is determined by supply and demand in just one place. He has also talked about Bitcoin ETF and the fact that to have a stable price of Bitcoin everything needs to sit in one place. He went on saying that having all the BTC in one place is a risk even when it creates a more stable market. For example, he emphasized the fact that if all the BTC are located in just one exchange, hackers might focus only on it. Furthermore, the US government would also have the possibility to confiscate the BTC that users own or trade them. There are several crypto platforms that are regulated, including exchanges such as Coinbase or Gemini. Governments would be able to confiscate the funds that users have on these exchanges, thus deleting one of Bitcoin’s main characteristics. Moreover, he said that Bitcoin being under the control of governments is not positive for the space. A lot of people would completely lose the faith in the popular virtual currency. This is exactly what Satoshi Nakamoto was trying to avoid when it created Bitcoin.
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Hong Kong Businessmen Targeted by Bitcoin Bomb Threats After Recent USA and Canada Attempts

There have been many different ways to steal funds from individuals in the cryptocurrency market. However, a new methodology has been applied in Hong Kong and other countries such as the United States. According to a recent report released by the South China Morning Post, businessmen in Hong Kong are being targeted by criminals that want to steal Bitcoin from them. These scammers try to steal Bitcoins from victims by threatening them that they will receive a bomb if they don’t send Bitcoins in the time span the scammers provide. One of the affected individuals is Michael Gazeley, the CEO of Network Box. He received a message in his business email with this Bitcoin bomb threat. Furthermore, he said that he had to pay $20,000 if he wanted to avoid receiving a bomb in his office. Gazeley said to the news outlet: “This looks like the third wave of blackmail emails plaguing the world in the past few years… I have never seen something like this, which sounds like cyberterrorism, in my 20-year career in cybersecurity.” Nevertheless, he was 99.99% sure that the message was not worth. Indeed, he mentioned that the email had some typo mistakes and the grammar used was not exactly good. That shows that the main intention is to take a few bucks from some individuals rather than really bombing an office. Hong Kong authorities did not provide further information about this issue, thus it is not possible to know the exact number of companies affected by these threats. This is not the first time that there are Bitcoin bomb threats around the world. A few days ago, as reported by NBC New York. Hoax bomb threats spread asking users to pay in Bitcoin. The New York Police Department (NYPD) informed on Twitter that there was an email circulating that contained a threat asking for a Bitcoin payment. However, they say that they did not find any devices in some of the places where the threat arrived. Please be advised – there is an email being circulated containing a bomb threat asking for bitcoin payment. While this email has been sent to numerous locations, searches have been conducted and NO DEVICES have been found. pic.twitter.com/7omOs13Z7Q — NYPD NEWS (@NYPDnews) December 13, 2018 The NYPD went on explaining that the threats are meant to cause disruption and/or obtain money in a fast way. Although the police will be responding to the calls made by the community, they believe that the threats are likely ‘not credible.’ This is not the first time that there are scammers trying to steal Bitcoin and other virtual currencies from users. Earlier this year, scammers on Twitter were asking for Bitcoin and ETH deposits using fake accounts that stole famous people’s identities.
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