Bitcoin Dealer Without Money Transmitter License Held ...

Subreddit Stats: btc top posts from 2019-01-06 to 2020-01-05 11:19 PDT

Period: 363.85 days
Submissions Comments
Total 1000 86748
Rate (per day) 2.75 237.19
Unique Redditors 317 7747
Combined Score 194633 356658

Top Submitters' Top Submissions

  1. 31014 points, 162 submissions: Egon_1
    1. Vitalik Buterin to Core Maxi: “ok bitcoiner” .... (515 points, 206 comments)
    2. These men are serving life without parole in max security prison for nonviolent drug offenses. They helped me through a difficult time in a very dark place. I hope 2019 was their last year locked away from their loved ones. FreeRoss.org/lifers/ Happy New Year. (502 points, 237 comments)
    3. "It’s official Burger King just accepted Bitcoin Cash and GoC token as a payment option in Slovenia." (423 points, 112 comments)
    4. "HOLY SATOSHI! 😱😱 I did it! A smart card that produces valid BitcoinCash signatures. Who would love to pay with a card—to a phone?? Tap took less than a second!👟..." (368 points, 105 comments)
    5. Chrome 'Has Become Surveillance Software. It's Time to Switch' -> Brave to support BCH! (330 points, 97 comments)
    6. Gavin Andresen (2017): "Running a network near 100% capacity is irresponsible engineering... " (316 points, 117 comments)
    7. "Evidently @github has banned all the Iranian users without an ability for them to download their repositories. A service like Github must be a public good and must not be controlled by a centralized entity. Another great example of why we as a society need to make web3 a reality" (314 points, 117 comments)
    8. Roger Ver: "Bitcoin Cash acceptance is coming to thousands of physical shops in Korea" (313 points, 120 comments)
    9. Paul Sztorc: “Will people really spend $70-$700 to open/modify a lightning channel when there's an Altcoin down the street which will process a (USD-denominated) payment for $0.05 ? Many people seem to think yes but honestly I just don't get it” (306 points, 225 comments)
    10. Food For Thought (303 points, 105 comments)
  2. 29021 points, 157 submissions: MemoryDealers
    1. Bitcoin Cash is Lightning Fast! (No editing needed) (436 points, 616 comments)
    2. Brains..... (423 points, 94 comments)
    3. Meanwhile in Hong Kong (409 points, 77 comments)
    4. Ross Ulbricht has served 6 years in federal prison. (382 points, 156 comments)
    5. Just another day at the Bitcoin Cash accepting super market in Slovenia. (369 points, 183 comments)
    6. Why I'm not a fan of the SV community: My recent bill for defending their frivolous lawsuit against open source software developers. (369 points, 207 comments)
    7. History Reminder: (354 points, 245 comments)
    8. It's more decentralized this way. (341 points, 177 comments)
    9. The new Bitcoin Cash wallet is so fast!!!!! (327 points, 197 comments)
    10. The IRS wants to subpoena Apple and Google to see if you have downloaded crypto currency apps. (324 points, 178 comments)
  3. 6909 points, 37 submissions: BitcoinXio
    1. Tim Pool on Twitter: “How the fuck are people justifying creating a world like the one's depicted in Fahrenheit 451 and 1984? You realize that censorship and banning information was a key aspect of the dystopian nightmare right?” (435 points, 75 comments)
    2. The creator of the now famous HODL meme says that the HODL term has been corrupted and doesn’t mean what he intended; also mentions that the purpose of Bitcoin is to spend it and that BTC has lost its value proposition. (394 points, 172 comments)
    3. Erik Voorhees on Twitter: “I wonder if you realize that if Bitcoin didn’t work well as a payment system in the early days it likely would not have taken off. Many (most?) people found the concept of instant borderless payments captivating and inspiring. “Just hold this stuff” not sufficient.” (302 points, 66 comments)
    4. Bitfinex caught paying a company to astroturf on social media including Reddit, Twitter, Medium and other platforms (285 points, 86 comments)
    5. WARNING: If you try to use the Lightning Network you are at extremely HIGH RISK of losing funds and is not recommended or safe to do at this time or for the foreseeable future (274 points, 168 comments)
    6. Craig Wright seems to have rage quit Twitter (252 points, 172 comments)
    7. No surprise here: Samson Mow among other BTC maxi trolls harassed people to the point of breakdown (with rape threats, etc) (249 points, 85 comments)
    8. On Twitter: “PSA: The Lightning Network is being heavily data mined right now. Opening channels allows anyone to cluster your wallet and associate your keys with your IP address.” (228 points, 102 comments)
    9. btc is being targeted and attacked, yet again (220 points, 172 comments)
    10. Brian Armstrong CEO of Coinbase using Bitcoin Cash (BCH) to pay for food, video in tweet (219 points, 66 comments)
  4. 6023 points, 34 submissions: money78
    1. BSV in a nutshell... (274 points, 60 comments)
    2. There is something going on with @Bitcoin twitter account: 1/ The URL of the white paper has been changed from bitcoin.com into bitcoin.org! 2/ @Bitcoin has unfollowed all other BCH related accounts. 3/ Most of the posts that refer to "bitcoin cash" have been deleted?!! Is it hacked again?! (269 points, 312 comments)
    3. "Not a huge @rogerkver fan and never really used $BCH. But he wiped up the floor with @ToneVays in Malta, and even if you happen to despise BCH, it’s foolish and shortsighted not to take these criticisms seriously. $BTC is very expensive and very slow." (262 points, 130 comments)
    4. Jonathan Toomim: "At 32 MB, we can handle something like 30% of Venezuela's population using BCH 2x per day. Even if that's all BCH ever achieved, I'd call that a resounding success; that's 9 million people raised out of poverty. Not a bad accomplishment for a hundred thousand internet geeks." (253 points, 170 comments)
    5. Jonathan Toomim: "BCH will not allow block sizes that are large enough to wreak havoc. We do our capacity engineering before lifting the capacity limits. BCH's limit is 32 MB, which the network can handle. BSV does not share this approach, and raises limits before improving actual capacity." (253 points, 255 comments)
    6. What Bitcoin Cash has accomplished so far 💪 (247 points, 55 comments)
    7. Which one is false advertising and misleading people?! Bitcoin.com or Bitcoin.org (232 points, 90 comments)
    8. A message from Lightning Labs: "Don't put more money on lightning than you're willing to lose!" (216 points, 118 comments)
    9. Silk Road’s Ross Ulbricht thanks Bitcoin Cash’s [BCH] Roger Ver for campaigning for his release (211 points, 29 comments)
    10. This account just donated more than $6600 worth of BCH via @tipprbot to multiple organizations! (205 points, 62 comments)
  5. 4514 points, 22 submissions: unstoppable-cash
    1. Reminder: bitcoin mods removed top post: "The rich don't need Bitcoin. The poor do" (436 points, 89 comments)
    2. Peter R. Rizun: "LN User walks into a bank, says "I need a loan..." (371 points, 152 comments)
    3. It was SO simple... Satoshi had the answer to prevent full-blocks back in 2010! (307 points, 150 comments)
    4. REMINDER: "Bitcoin isn't for people that live on less than $2/day" -Samson Mow, CSO of BlockStream (267 points, 98 comments)
    5. "F'g insane... waited 5 hrs and still not 1 confirmation. How does anyone use BTC over BCH BitcoinCash?" (258 points, 222 comments)
    6. Irony:"Ave person won't be running LN routing node" But CORE/BTC said big-blocks bad since everyone can't run their own node (256 points, 161 comments)
    7. BitPay: "The Wikimedia Foundation had been accepting Bitcoin for several years but recently switched pmt processors to BitPay so they can now accept Bitcoin Cash" (249 points, 61 comments)
    8. FreeTrader: "Decentralization is dependent on widespread usage..." (195 points, 57 comments)
    9. The FLIPPENING: Fiat->OPEN Peer-to-Peer Electronic Cash! Naomi Brockwell earning more via BitBacker than Patreon! (193 points, 12 comments)
    10. LN Commentary from a guy that knows a thing or 2 about Bitcoin (Gavin Andresen-LEAD developer after Satoshi left in 2010) (182 points, 80 comments)
  6. 3075 points, 13 submissions: BeijingBitcoins
    1. Last night's BCH & BTC meetups in Tokyo were both at the same restaurant (Two Dogs). We joined forces for this group photo! (410 points, 166 comments)
    2. Chess.com used to accept Bitcoin payments but, like many other businesses, disabled the option. After some DMs with an admin there, I'm pleased to announce that they now accept Bitcoin Cash! (354 points, 62 comments)
    3. WSJ: Bitfinex Used Tether Reserves to Mask Missing $850 Million, Probe Finds (348 points, 191 comments)
    4. Bitcoiners: Then and Now [MEME CONTEST - details in comments] (323 points, 72 comments)
    5. I'd post this to /Bitcoin but they would just remove it right away (also I'm banned) (320 points, 124 comments)
    6. So this is happening at the big protest in Hong Kong right now (270 points, 45 comments)
    7. /Bitcoin mods are censoring posts that explain why BitPay has to charge an additional fee when accepting BTC payments (219 points, 110 comments)
    8. The guy who won this week's MillionaireMakers drawing has received ~$55 in BCH and ~$30 in BTC. It will cost him less than $0.01 to move the BCH, but $6.16 (20%) in fees to move the BTC. (164 points, 100 comments)
    9. The Bitcoin whitepaper was published 11 years ago today. Check out this comic version of the whitepaper, one of the best "ELI5" explanations out there. (153 points, 12 comments)
    10. Two Years™ is the new 18 Months™ (142 points, 113 comments)
  7. 2899 points, 18 submissions: jessquit
    1. Oh, the horror! (271 points, 99 comments)
    2. A few days ago I caught flak for reposting a set of graphs that didn't have their x-axes correctly labeled or scaled. tvand13 made an updated graph with correct labeling and scaling. I am reposting it as I promised. I invite the viewer to draw their own conclusions. (214 points, 195 comments)
    3. Do you think Bitcoin needs to increase the block size? You're in luck! It already did: Bitcoin BCH. Avoid the upcoming controversial BTC block size debate by trading your broken Bitcoin BTC for upgraded Bitcoin BCH now. (209 points, 194 comments)
    4. Master list of evidence regarding Bitcoin's hijacking and takeover by Blockstream (185 points, 113 comments)
    5. PSA: BTC not working so great? Bitcoin upgraded in 2017. The upgraded Bitcoin is called BCH. There's still time to upgrade! (185 points, 192 comments)
    6. Nobody uses Bitcoin Cash (182 points, 88 comments)
    7. Double-spend proofs, SPV fraud proofs, and Cashfusion improvements all on the same day! 🏅 BCH PLS! 🏅 (165 points, 36 comments)
    8. [repost] a reminder on how btc and Bitcoin Cash came to be (150 points, 102 comments)
    9. Holy shit the entire "negative with gold" sub has become a shrine devoted to the guilded astroturfing going on in rbtc (144 points, 194 comments)
    10. This sub is the only sub in all of Reddit that allows truly uncensored discussion of BTC. If it turns out that most of that uncensored discussion is negative, DON'T BLAME US. (143 points, 205 comments)
  8. 2839 points, 13 submissions: SwedishSalsa
    1. With Bitcoin, for the first time in modern history, we have a way to opt out. (356 points, 100 comments)
    2. In this age of rampant censorship and control, this is why I love Bitcoin. (347 points, 126 comments)
    3. The crypto expert (303 points, 29 comments)
    4. Satoshi reply to Mike Hearn, April 2009. Everybody, especially newcomers and r-bitcoin-readers should take a step back and read this. (284 points, 219 comments)
    5. Bitcoin Cash looking good lately. (235 points, 33 comments)
    6. Roger Ver bad (230 points, 61 comments)
    7. History of the BTC scaling debate (186 points, 54 comments)
    8. MFW i read Luke Jr wants to limit BTC blocks to 300k. (183 points, 116 comments)
    9. Meanwhile over at bitcoinsv... (163 points, 139 comments)
    10. Listen people... (155 points, 16 comments)
  9. 2204 points, 10 submissions: increaseblocks
    1. China bans Bitcoin again, and again, and again (426 points, 56 comments)
    2. China bans Bitcoin (again) (292 points, 35 comments)
    3. Bitcoin Cash Network has now been upgraded! (238 points, 67 comments)
    4. So you want small blocks with high fees to validate your own on chain transactions that happen OFF CHAIN? (212 points, 112 comments)
    5. It’s happening - BTC dev Luke jr writing code to Bitcoin BTC codebase to fork to lower the block size to 300kb! (204 points, 127 comments)
    6. Former BTC maximalist admits that maxi's lied cheated and stealed to get SegWit and Lightning (201 points, 135 comments)
    7. Just 18 more months to go! (172 points, 86 comments)
    8. Bitcoin Cash ring - F*CK BANKS (167 points, 51 comments)
    9. LTC Foundation chat leaked: no evidence of development, lack of transparency (155 points, 83 comments)
    10. A single person controls nearly half of all the Lightning Network’s capacity (137 points, 109 comments)
  10. 2138 points, 12 submissions: JonyRotten
    1. 'Craig Is a Liar' – Early Adopter Proves Ownership of Bitcoin Address Claimed by Craig Wright (309 points, 165 comments)
    2. 200,000 People Have Signed Ross Ulbricht's Clemency Petition (236 points, 102 comments)
    3. Street Artist Hides $1,000 in BTC Inside a Mural Depicting Paris Protests (236 points, 56 comments)
    4. Craig Wright Ordered to Produce a List of Early Bitcoin Addresses in Kleiman Lawsuit (189 points, 66 comments)
    5. Ross Ulbricht Clemency Petition Gathers 250,000 Signatures (163 points, 24 comments)
    6. Ross Ulbricht Letter Questions the Wisdom of Imprisoning Non-Violent Offenders (160 points, 50 comments)
    7. Expert Witness in Satoshi Case Claims Dr Wright's Documents Were Doctored (155 points, 44 comments)
    8. California City Official Uses Bitcoin Cash to Purchase Cannabis (151 points, 36 comments)
    9. Money Transmitter License Not Required for Crypto Businesses in Pennsylvania (141 points, 9 comments)
    10. McAfee to Launch Decentralized Token Exchange With No Restrictions (137 points, 35 comments)

Top Commenters

  1. jessquit (16708 points, 2083 comments)
  2. Ant-n (7878 points, 1517 comments)
  3. MemoryDealers (7366 points, 360 comments)
  4. Egon_1 (6205 points, 1001 comments)
  5. 500239 (5745 points, 735 comments)
  6. BitcoinXio (4640 points, 311 comments)
  7. LovelyDay (4353 points, 457 comments)
  8. chainxor (4293 points, 505 comments)
  9. MobTwo (3420 points, 174 comments)
  10. ShadowOfHarbringer (3388 points, 478 comments)

Top Submissions

  1. The perfect crypto t-shirt by Korben (742 points, 68 comments)
  2. The future of Libra Coin by themadscientistt (722 points, 87 comments)
  3. when you become a crypto trader... by forberniesnow (675 points, 54 comments)
  4. A Reminder Why You Shouldn’t Use Google. by InMyDayTVwasBooks (637 points, 209 comments)
  5. Imagine if in 2000 Apple just sat around all day shit-talking Microsoft. Apple would have never gone anywhere. Apple succeeded because they learned from their mistakes, improved, and got better. BCH should do the same. by guyfawkesfp (552 points, 255 comments)
  6. Bitcoin made The Simpsons intro! Sorry for the potato quality by Johans_wilgat (521 points, 44 comments)
  7. Vitalik Buterin to Core Maxi: “ok bitcoiner” .... by Egon_1 (515 points, 206 comments)
  8. Can't stop won't stop by Greentoboggan (514 points, 78 comments)
  9. These men are serving life without parole in max security prison for nonviolent drug offenses. They helped me through a difficult time in a very dark place. I hope 2019 was their last year locked away from their loved ones. FreeRoss.org/lifers/ Happy New Year. by Egon_1 (502 points, 237 comments)
  10. Blockchain? by unesgt (479 points, 103 comments)

Top Comments

  1. 211 points: fireduck's comment in John Mcafee on the run from IRS Tax Evasion charges, running 2020 Presidential Campaign from Venezuela in Exile
  2. 203 points: WalterRothbard's comment in I am a Bitcoin supporter and developer, and I'm starting to think that Bitcoin Cash could be better, but I have some concerns, is anyone willing to discuss them?
  3. 179 points: Chris_Pacia's comment in The BSV chain has just experienced a 6-block reorg
  4. 163 points: YourBodyIsBCHn's comment in I made this account specifically to tip in nsfw/gonewild subreddits
  5. 161 points: BeijingBitcoins's comment in Last night's BCH & BTC meetups in Tokyo were both at the same restaurant (Two Dogs). We joined forces for this group photo!
  6. 156 points: hawks5999's comment in You can’t make this stuff up. This is how BTC supporters actually think. From bitcoin: “What you can do to make BTC better: check twice if you really need to use it!” 🤦🏻‍♂️
  7. 155 points: lowstrife's comment in Steve Wozniak Sold His Bitcoin at Its Peak $20,000 Valuation
  8. 151 points: kdawgud's comment in The government is taking away basic freedoms we each deserve
  9. 147 points: m4ktub1st's comment in BCH suffered a 51% attack by colluding miners to re-org the chain in order to reverse transactions - why is nobody talking about this? Dangerous precident
  10. 147 points: todu's comment in Why I'm not a fan of the SV community: My recent bill for defending their frivolous lawsuit against open source software developers.
Generated with BBoe's Subreddit Stats
submitted by subreddit_stats to subreddit_stats [link] [comments]

US Congressman Tom Emmer announced late Friday that he will introduce a trio of cryptocurrency and blockchain related bills as cryptocurrencies fell lower this weekend after posting significant gains last week

Crypto News

Sources:
https://bitcoinist.com/weiss-ratings-bitcoin-lose-ethereum/ https://www.coindesk.com/brazils-largest-independent-broker-is-launching-a-crypto-exchange/ https://www.ccn.com/brazils-biggest-brokerage-processes-bitcoin-trades-govt-supportive/ https://www.coindesk.com/the-latest-bitcoin-bug-was-so-bad-developers-kept-its-full-details-a-secret/ https://www.coindesk.com/when-blockchains-go-down-why-crypto-outages-are-on-the-rise/ https://cointelegraph.com/news/dubai-department-of-finance-launches-blockchain-based-payment-system-for-uae-govt https://bitcoinist.com/dubai-is-building-a-blockchain-powered-government/ https://www.ccn.com/indian-authorities-round-up-on-bitcoin-scammers-properties-worth-60-million/ https://cointelegraph.com/news/icelands-industry-to-shift-from-crypto-mining-to-pure-blockchain-business-insiders-say https://www.coindesk.com/momentum-is-building-to-block-ethereum-asics/ https://cointelegraph.com/news/icelands-industry-to-shift-from-crypto-mining-to-pure-blockchain-business-insiders-say https://www.coindesk.com/us-congressman-drafts-bills-to-aid-blockchain-development/ https://cointelegraph.com/news/opera-launches-beta-labs-version-of-built-in-crypto-wallet-for-desktop-browser https://cointelegraph.com/news/us-congressman-to-introduce-bills-supporting-blockchain-technology-cryptocurrencies
submitted by QuantalyticsResearch to CryptoCurrency [link] [comments]

An Introduction to Global Blockchain Policies Part I

https://preview.redd.it/azedvcnlfhj21.jpg?width=918&format=pjpg&auto=webp&s=0b7da7d0ea190e8beb550abfa5972361114ad427
Source: Jinse.com
In 2008, Bitcoin was first introduced to the world by the father of cryptocurrency Satoshi Nakamoto; a move that kicked off the development of blockchain technology and a form of encrypted currencies we now know as cryptocurrencies. As interest in cryptocurrencies grew, governments around the world also began implementing policies to regulate these activities, of which the most favourable were noted to root from Southeast Asian countries. This observation is further bolstered by a report “Introduction to blockchain policies in Southeast Asia” published on 2 February this year.
Today, we will be helping you understand how governments around the world are regulating blockchain technology and cryptocurrencies in their countries, as well as where they stand when it comes to this controversial topic.

USA

https://preview.redd.it/qv59cmfrfhj21.png?width=300&format=png&auto=webp&s=c08a646ba218de63c154a479fd832aa427f37fb9
The United States of America has always kept a close watch on blockchain developments. In September 2016, the US House of Representatives passed a non-binding resolution calling for a national technology innovation policy that includes supportive language for digital currencies and blockchain technology. This was followed by the formation of a blockchain working group “[email protected]” later on in February 2017 to formulate and improve regulatory policies related to blockchain technology.
On 12 January 2019, the state legislature of the American state of Wyoming passed two house bills that aim to foster a regulatory environment conducive to cryptocurrency and blockchain innovation. They were the House Bill 62 “Wyoming Utility Token Act-property amendments” and House Bill 57 “Financial Technology Sandbox” respectively.
6 days later on 18 January 2018, Wyoming introduced another bill that aims to clarify the legal position of digital assets, as well as offer digital asset custody through banks rather than financial institutions. This particular bill offers three classifications of digital assets; digital securities, digital assets, and most importantly, virtual currencies which give cryptocurrencies the same treatment as money within the state.
Following that on 23 January 2019, the Pennsylvania Department of Banking and Securities (DoBS) announced through a memo titled “Money Transmitter Act Guidance for Virtual Currency Businesses” stating that the Money Transmitter Act (MTA) did not apply to cryptocurrency exchanges, hence cryptocurrency exchanges in the state do not require Money Transmission Business Licenses.
On 28 January 2019, a bill recognizing the effectiveness of Distributed Ledger Technology (DLT) was applied to the Washington State Electronics Certification Act, hence making amendments to the “Purpose and Structure” and “Definition” portions of the bill and compiling the Digital Signatures and License Law to encourage the development of distributed ledgers and blockchain technology.
From all these, we can see that the United States has grown more accepting of blockchain technologies over the years. From subtle displays of support in 2016 to the concretization of firmer, pro-blockchain policies in 2019, the Americas has made their stand clear. Coupled with strict investigations enforced on Initial Coin Offerings (ICO), we can conclude that the US is ultimately a fairly neutral party when it comes to blockchain technology.

England

https://preview.redd.it/k6gz6ocsfhj21.png?width=300&format=png&auto=webp&s=2714d32dfa8c55a477079f0ac99f8993ff6ae3fd
In March 2018, the British government established a crypto assets taskforce comprising the Treasury, the Bank of England and the Financial Conduct Authority (FCA) to explore the risks and potential benefits of crypto assets and other applications of distributed ledger technology in financial services to assess if any regulation is required in response.
The taskforce also pointed out that the distributed ledger technology is one that will not only benefit industries beyond just financial services, and should not be restricted by excessive governmental regulations.
In response, the British government has taken the recent months to embark on initiatives that would spur the growth of cryptocurrency companies and projects within the United Kingdom. Currently, the British tax department is working on tax guidelines for individuals involved in cryptocurrency operations.
In short, while the British government has been in the backseat adopting a more cautious approach in the beginning, it is clear that they have learnt the long term benefits of the distributed ledger technology and just like the US, it has been working hard to catch up with the rest of the world in recent years.

Switzerland

https://preview.redd.it/7go5xb0ufhj21.png?width=192&format=png&auto=webp&s=1982b0fe84dd09975017000152ae2d602c449dc6
In 2015, the Swiss Financial Market Supervisory Authority (FINMA) released a report highlighting the risks that come with the Bitcoin’s ability to facilitate cross-border payments anonymously. The report further pointed out that this particular trait has provided opportunities for terrorist financing — an indication of Switzerland’s conservative stand when it comes to cryptocurrencies and its relevant technologies.
From 2016 onwards, the Swiss government made great efforts to formulate the most suitable blockchain regulatory policies for the country and together with the Federal Department of Finance, came up with a framework to regulate financial technology and digital currencies in Switzerland.
In February 2018, FINMA published an ICO guideline setting out how it intends to apply financial market legislation in handling enquiries from ICO organizers. Through this, the authority categorizes tokens into three types: Payment Tokens, Utility Tokens and Asset Tokens, hence allowing them to better assess each ICO based on the economic function and purpose of the tokens issued by the ICO organizer.
While switzerland started off with a more conservative approach in view of the money-laundering and terrorist-financing risks that comes with cryptocurrencies, it has never lost sight of the benefits its technology can bring to the economy. With stricter guidelines and regulations, Switzerland found a way to capitalize on the advantages of cryptocurrencies without compromising on national security.

Japan

https://preview.redd.it/aydmz0avfhj21.png?width=288&format=png&auto=webp&s=df9402a924e03330e4469369b08cf72b1b57b64e
In 2017, the Japanese Financial Services Agency (FSA) defined cryptocurrencies as property values that are stored electronically on electronic devices and introduced the Fund Settlement Act which will regulate the Japanese cryptocurrency market. This was soon followed by further interest in blockchain-powered voting systems and banking payment platforms.
On 13 September 2018, the FSA banned trading between highly anonymous currencies and proposed a four-fold margin trading ration, which was later endorsed by the Japan Virtual Money Exchange Association (JVCEA), a self-regulatory organization of trading platforms in Japan. It also suggested further analysis of ICO-related rules.
Not long later on 26 September 2018, the FSA released its Financial Services Policy 2018 which stated that with regards to virtual currencies, there will be a tightening of registration screenings and monitoring, On 2 December of the same year, the government introduced new ICO policies to protect investors from fraud.
From what we have seen, the Japanese government is a clear supporter of cryptocurrencies and blockchain technology. It is one of the most active countries in ensuring the safe integration of digital currencies into its ecosystem, consistently conducting reviews and monitoring the market to protect its citizens. As such, here we are, once again, with another ally of the blockchain technology.
About 1SG: 1SG is a stable coin, issued by the Mars Blockchain Group which overcomes the problems of today’s cryptocurrencies, while providing open, transparent, efficient KYC/AML process. With the key features of stable value and high liquidity, Mars Blockchain is a start-up committed to becoming a leading stable coin in global cryptocurrency market. 1SG circumvents the volatility of other major cryptocurrencies by maintaining a fixed peg to $1 SGD through financial markets.
For more details, check out www.1.sg
For more information on 1SG, keep up with its following social media: Telegram: https://t.me/SGone Reddit: https://www.reddit.com/use1-SG/ Twitter: https://twitter.com/1SG_2018 Instagram: https://www.instagram.com/1sg_sg/ YouTube: https://www.youtube.com/channel/UC_p_8y1geOe0lmB4F3i6Fpg
To trade 1SG now, head over to these exchange platforms: P2PB2B: https://p2pb2b.io/ BitMart: https://www.bitmart.com/ TOP.ONE: https://top.one/index Kryptono: https://kryptono.exchange/k/home OEX: https://www.oex.com/index
submitted by 1-SG to 1SG_ [link] [comments]

RaiBlocks AMA Summary!

I posted this under /cryptocurrency and /cryptomarkets as well! Might be less useful under this subreddit... but I'm using it for purposes of helping people become aware of this coin.
Summation of RaiBlocks lead developer AMA. I'm very excited about this coin, and if you're asking why I did this...I'm trying out my AMA consolidating script that I wrote for fun :) I'm interested in seeing what people think about this coin! You can read the responses directly from this link: https://www.reddit.com/RaiBlocks/comments/7ko5l7/colin_lemahieu_founder_and_lead_developer_of/
 
What are your top priorities atm? Both in developing areas itself and in terms of integration?
 
The top priorities right now are:
These basically need to happen in a sequence because each item isn't useful unless the previous one is complete.
 
 
Do you have any plans to have your source code peer reviewed? By peer review I mean sending your source code down to MIT for testing and review.
Where do you see Raiblocks 5-10 years from now? (For instance do you envision people using a Raiblocks mobile phone app to transfer value between each other, or buy stuff at the store?
 
We definitely need peer and code reviews and we're open to anyone doing this. We have ideas for people in universities that want to analyze the whitepaper or code so we'll see what comes of that. In my opinion code security guarantees can only be given with (eyes * time) and we need both.
I'd like to see RaiBlocks adopted as an internet RFC and basically become an ubiquitous background technology like http. I think you're probably right and a mobile app would be the most user-friendly way to do this so people don't need to carry around extra cards in their wallet etc.
 
 
Is there a list of the team readily available? Are there firm plans to expand, and if so, in which directions?
The roadmap indicated a website redesign scheduled for November 2017. Is there an update?
 
We have about 12 people in the core team; about half are code and half are business developers. On the redesigned website we're going to include bios for sure, no one in our team is anonymous. I think we have pretty good coverage of what we need right now, we could always use more people capable of contributing to the core code.
The website design is well underway, we wanted to streamline and add some more things to it so it took longer than originally estimated. It'll looking like after the new year we'll have it ready.
 
 
Would you ever consider renaming the coin to simply "Rai" or any other simplified form other than RaiBlocks?
2. What marketing strategy do you think will push XRB forward from now on as a fully working product. Instant and free, the green coin, "it just works" coin, etc?
3. Regarding security, is "quantum-proofing" a big concern at the moment and how do you guys plan to approach this when the time comes. And how possible would it be for bad actors to successfully implement a 51% attack.
 
  1. Yea there are a few difficulties people have pointed out with our name. People don't know if it's "ray" or "rye". "Blocks" doesn't have a meaning to a lot of people and the name reference might be too esoteric to be meaningful. I'm not prideful so I'm not stuck on a particular name, we'll take a look at what our marketing and business developers say peoples' impressions are and if they have any naming recommendations.
  2. Our marketing strategy is to focus on complete simplicity. Instant and free resonates with enthusiasts and mass adoption will only come when using xrb is absolutely the same experience as using a banking or other payment app. People aren't going to tolerate jargon or confusing workflows when sending or receiving payments.
  3. Quantum computing is going to be an amazing leap for humanity but it's also going to cause a lot of flux in cryptography. The plan I see is the similar to what I did in selecting the cryptographic algorithms we're using right now: look for leaders in academia and industry that have proven implementations and use those as they recommend migration based on computing capability. Quantum vulnerabilities can be an issue in the future but a vulnerable implementation would be an issue right now.
 
 
Hi Colin, lately XRB has been getting frequently compared to and contrasted with Iota. I was hoping that you could give us your thoughts on the differences between the two and what your general vision for the future of Raiblocks is.
 
It's flattering to be compared to IOTA, they have a very talented team building ambitious technology. When looking at design goals I think one thing we're not attempting to approach is transferring a data payload, we're only looking to be a transfer of value.
There are lots of ideas and technology to be developed in the cryptocurrency space and I want RaiBlocks to solve one section of that industry: the transfer of value. I think the best success would be if RaiBlocks was adopted as the global standard for this and crypto efforts could move to non-value-transfer use-cases.
 
 
Do you see XRB becoming the new payment method for commerce. As in, buying coffee, groceries, etc? Do you have plans for combating the HODL mentality so this currency can actually be used in the future of buying and selling?
 
Being a direct transactional payment method is our goal and we're trying to build software that's accessible to everyone to make that happen. I see holding as a speculative tactic anticipating future increases and you're right, it's not in line with day-to-day transactions. I think as market cap levels off to a more consistent value the reason for holding and speculating goes away and people can instead focus on using it as a value exchange.
 
 
Are you planning to expand the RaiBlocks team over the next 12 months? If so, what types of positions are you hoping to fill?
 
Right now we have about 12 people, half core and half business developers. I think this count is good for working on what we're doing right now which is getting wallets and exchanges worked on. Ideally people outside our team will start developing technology around xrb taking advantage of the network effect to build more technology faster than we could internally. That being said we're going to look in a few months to see if there's anything out there people aren't developing that should be and we'll see what people we need to make it happen.
 
 
At what point did you make the decision to make RaiBlocks your full time job? What was the decision making process like?
 
It was after the week where the core team met here in Austin to brainstorm our next steps. I saw how much enthusiasm there was from crypto-veterans with having a working system capable of being scaled up to what's needed for massive adoption and it seemed the risk needed to be taken.
It was hard decision to make, working in the crypto and finance is rough and I like using my leisure time to work on inventions. Of all the projects ideas I have this one seemed to have a high chance of success and the benefits of having a working, decentralized currency would be huge.
 
 
Hi Colin, what prevents great cryptos like XRB from being listed on bigger exchanges?
 
It's good to understand where the biggest headaches for exchanges lie: support tickets, operations, and development. If a technology is different from what they already have, that takes development time. If the software is new and not widely run, that's potential operations time to fix it which results in support tickets and community backlash. Adding BitCoin clones or Ethereum ICO coins is easy because they don't have these associated risks or costs.
 
 
What can the average RaiBlocks-Fan do to help XRB getting adopted / growing / expanding?
 
I think the best thing an average fan could do is word of mouth and telling people about RaiBlocks. More people being aware of it means there's the possibility someone who's never heard of it before would be interested in contributing as a vendor, developer, exchange etc.
Good advertising or marketing will never be able to reach everyone as well as someone reaching out within their own network.
 
 
Ray or Rye?
 
Ray hehe. It comes from https://en.wikipedia.org/wiki/Rai_stones Lots of people don't know the answer though >_<
 
 
Are you looking at incorperating a datamarket like iota in the future? Given the speed of the network a data exchange for highly accurate sensors could be a game changer.
Further more, are there any plans to increase the Dev team in the future? I read on the FAQ you'd like RaiBlocks to be somewhat of a protocol which is a huge ambition. A Dev from say the Mozilla foundation or other could further cement this ambitious project.
 
Transmitting data payloads is something we probably won't pursue. The concern is adding more features like this could cause us to make decisions that compromise the primary focus points of low-cost and speed for transferring value.
We can add people to the dev team though I think we'll get the most traction by teaching teams in these other organization how to use RaiBlocks so they can be the experts on the subject in their companies.
 
 
Does the actual RaiBlocks version require "Each node in the network must be aware of all transactions as they occur" part? This was in the old white paper and is asked here:
https://www.reddit.com/RaiBlocks/comments/7ksl81/some_questions_regarding_raiblocks_consensus/?st=jbdmgagc&sh=d1c93cca
 
If a node wants to independently know the balances of all accounts in the system, it must at a minimum have storage to hold accounts and all their balances. In order to know all balances it must either listen to transactions as they're happening or bootstrap from someone else to catch up as what happens on startup.
 
 
There is no incentive to run nodes. Some people will do it because it is cheap as fuck (as I read an raspberry pie can run it). But I think not many people will do it.
1. How important are the nodes in terms of further scaling?
2. On which network conditions where the 7000 transactions met?
3. What happens if the transactions per day tenfolds but the nodes don't?
4. How much better will Rai scale if someone sets up, lets say, 100 nodes with awesome hardware and network?
5. How many nodes could be enough for visa level scaling?
6. Which further improvements can be made for Rai IF there needs to be other improvements than setting up new nodes? Are there other concepts like 2nd layer solutions planned?
7. How will Rai defend network attacks?
I know there is an PoW part. But since there a also large attacks on high cap coins on which people invest millions of $ to congest a network..Is it possible that the Rai network will be unusable for several days because of this?
 
I think the out-of-protocol incentives to running a node are under-referenced yet I see them as the primary driving factor for participating as a whole. Node rewards come at the expense of other network participants and in this closed loop the incentives aren't enough to keep a cryptocurrency alive. Long-term there needs to be a system-level comparative advantage to what people are already using for a transfer of value. If someone is using xrb and it saves them hundreds or thousands of dollars per month in fees and customer irritation in delayed payments, they have a direct monetary incentive to using xrb and a monetary incentive in the health of the system.
1) More nodes provides transaction and bootstrapping redundancy. More representatives provides decentralization.
2) The 7k TPS was a profile how fast commodity hardware could eat transactions. All of the real-world limits are going to be something hardware related, either bandwidth, IO, or CPU.
3) The scaling is more related to the hardware the nodes are using rather than the node count. If there was 10x increase in transactions it would use 10x the bandwidth and IO as nodes observe transactions happening.
4) If someone made 100 representative nodes the network would be far more decentralized though the tx throughput would be unchanged since that's a per-node requirement.
5) Scaling to Visa will have high bandwidth and IO requirements on representatives associated with doing 10k IOPS. Datacenter and business class hardware will have to be enough to handle the load.
6) Second layer solutions are always an option and I think a lot of people will use them for fraud protection and insurance. Our primary focus is to make the 1st layer as efficient and high speed as possible so a 2nd layer isn't needed for daily transactions.
7) Defending against network attacks will be an ongoing thing, people like breaking the network for lulz or monetary gain i.e. competing cryptos. If there are attacks we haven't defended against or considered it'll be a matter of getting capable people to fix issues.
 
 
Are you open to changes to the name? (Rai)
What are your plans with regards to marketing?
 
I'm open to it, people get confused on ray/rye pronunciation, not the greatest first impression.
As far as timing I think marketing works best after a more user friendly wallet and integration in to more exchanges otherwise we're sending traffic to something people can't use. We're going to start by focusing on the initial adopters which will likely be enthusiasts and going forward work on the next set of users that aren't enthusiasts but want to drive savings for their business through lower payment processing costs.
 
 
A recent tweet(https://twitter.com/VitalikButerin/status/942961006614945792) from Vitalik Buterin. Could this be a case with testing the scalability of RaiBlocks as well and in reality we wouldn't come close to 7000tx/s?
 
I think he's definitely right, a lot of the TPS numbers are synthetic benchmarks usually on one system. The biggest thing hindering TPS are protocol-specific limits like hard caps or high contention design. The next biggest thing will be bandwidth and then disk IO. Some of these limits can be improved by profiling and fixing code instead of actual limits in the hardware.
We want to get better, real world numbers but our general opinion is that the RaiBlocks protocol is going to be limited by hardware, rather than design.
 
 
Are you planning to add a fiat gateway to the main website and mobile wallet?
 
If we can make it happen for sure, that seems like a very user-focused feature people would want.
The difficulty at least in the US is the money-transmitter licenses which are hard to obtain. More than likely if this functionality was added it'd be a partnership with an established financial company that has procedures in place to operate within countries' regulations.
 
 
I saw a post on /iota that claims that their quantum resistance is a main benefit over raiblocks. Can you go into detail about this? explain any plans you have to let XRB persevere through upcoming quatum revolution?
 
I think everyone with cryptography in their programs is keeping an eye on quantum cryptography because we're all in the same boat. I don't have cryptanalysis credentials so I didn't feel comfortable building an implementation and instead chose to use one off-the-shelf from someone with assuring credentials.
There are some big companies that have made small mistakes that blow up the usefulness of the entire algorithm, it's incredibly easy to do. https://arstechnica.com/gaming/2010/12/ps3-hacked-through-poor-implementation-of-cryptography/
 
 
Hello Colin, is any security audit to the source code planned?
 
We don't have one contracted though both internally and externally this is an important thing people want completed.
 
 
Do you have plans to radically change the interface of the desktop wallet, and to develop a universal, cross-platform, clean and simple UX design for the wallet? This will be huge for mass adoption in my humble opinion
 
I completely agree, we do plan on completely redoing the desktop wallet, both from a UX standpoint and maintainability so UI code doesn't need to be in C++. This could also remove out dependency on QT which is the least permissive license in the code right now.
I write code better than I design GUIs ;)
 
 
It seems like Raiblocks is aiming to be a true currency with it's lacking of transaction fees and fast confirmation times, which is great! If Raiblocks can add some kind of support for privacy then I think it got the whole picture figured out in terms of being "digital cash". Do you currently have any plans to implement privacy features into RaiBlocks?
If Raiblocks is unable to do this, it will still be a straight improvement over things like LTC which are currently being used as currency, but I don't think it will be able to become THE cryptocurrency without privacy features.
 
I love the concept of privacy in the network and it's a hard thing to do right. Any solution used would need to be compatible with our balance-weighted-voting method which means at least we'd have to know how much weight a representative has even if we're hiding actual account balances.
To be fully anonymous it would have to be hide accounts, amounts, endpoints, and also timing information; with advanced network analysis the timing is the hardest thing to hide. Hopefully some day we can figure out an efficient privacy solution though the immediate problem we can solve is making a transactional cryptocurrency so we're focusing on that.
 
 
Could you provide an analysis on the flaws of RaiBlocks? Is it in any way, shape, or form at a disadvantage compared to a blockchain based ledger like bitcoin? There has to be drawbacks, but I haven’t found any.
Do you plan on expanding the dev team and establishing a foundation? Also, how much money is in the development pool?
 
One drawback is to handle is our chain-per-account model and asynchronous updates it takes more code and design. This means instead of one top-block hash for everything there's one for each account. This gives us the power of wait-free asynchronous transactions at the cost of simplicity.
After we finish up things like the wallet, website, and exchange integration we'll be looking at seeing what dev resources we need to build tech if no one else is already working on a particular thing. We have about 6 million XRB right now so we've made the existing dev funds go a long way. If something expensive to build came along and dev funds wouldn't cut it we could look at some sort of external funding.
 
 
How big of a problem is PoW for exchanges and what are potential solutions?
 
Considering how much exchanges stand to make through commission I don't see the cost as a barrier, it's just an abnormal technology request compared to other cryptocurrencies.
We're working on providing a service exchanges can use in the interim until they set up their own infrastructure to generate the work. Other options are containers people can use on cloud services to get the infrastructure they need until they want to invest in their own.
 
 
It's my understanding that since everything works asynchronously, in the case of double spending there is a chance a merchant would receive the block that would be later invalidated and have it shown in it's wallet, even if a little later (1 minute?) the amount would correct when the delegates vote that block invalid. Is there any mechanism to avoid this? Maybe tag the transactions in the wallet as "confirming" and then "confirmed" after that minute? Is there actually any certain way for a wallet to know, in a deterministic/programable way, at what moment a transaction is 100% legit? (for example if the delegates are DoS'ed I guess that minute could be much longer). I know this is an improbable case, but still...
 
Yea you're hitting a good point, the consensus algorithm in the node is designed to wait for the incoming transaction to settle before accepting it in to the local chain for the exact reason you listed, if their transaction were to be rolled back the local account would be rolled back as well.
We can trend the current weight of all representatives that are online and voting and make sure we have >50% of the vote weight accounted for before considering it settled.
 
 
Hey Colin, will you eventually have support for a Trezor or other hard wallet?
 
Yea we'll definitely work with companies like Trezor that are interested in being a hardware wallet for xrb. It's just a matter of making sure they support the signing algorithms and integrating with their API.
 
EDIT: I'm getting a lot of messages asking me how to buy XRB. I used this guide which was very helpful: https://www.reddit.com/RaiBlocks/comments/7i0co0/the_definitive_guide_to_buying_and_storing/
In short -- buy BTC on coinbase, open up an account on bitgrail, transfer that BTC from coinbase to bitgrail, then trade your BTC for XRB. It's a pain right now because it's such a new coin, but soon it will be listed on more exchanges, and hopefully on things like shapeshift/changelly. After that it will be much easier... but until then, the inconvenience is what we have to pay in order to get into XRB while its still early.
EDIT: BAD SCRIPT, BAD!
submitted by atriaxx to RaiBlocks [link] [comments]

RaiBlocks AMA Summation!

Summation of RaiBlocks lead developer AMA. I'm very excited about this coin, and if you're asking why I did this...I'm trying out my AMA consolidating script that I wrote for fun :) I'm interested in seeing what people think about this coin! You can read the responses directly from this link: https://www.reddit.com/RaiBlocks/comments/7ko5l7/colin_lemahieu_founder_and_lead_developer_of/
 
What are your top priorities atm? Both in developing areas itself and in terms of integration?
 
The top priorities right now are:
These basically need to happen in a sequence because each item isn't useful unless the previous one is complete.
 
 
Do you have any plans to have your source code peer reviewed? By peer review I mean sending your source code down to MIT for testing and review.
Where do you see Raiblocks 5-10 years from now? (For instance do you envision people using a Raiblocks mobile phone app to transfer value between each other, or buy stuff at the store?
 
We definitely need peer and code reviews and we're open to anyone doing this. We have ideas for people in universities that want to analyze the whitepaper or code so we'll see what comes of that. In my opinion code security guarantees can only be given with (eyes * time) and we need both.
I'd like to see RaiBlocks adopted as an internet RFC and basically become an ubiquitous background technology like http. I think you're probably right and a mobile app would be the most user-friendly way to do this so people don't need to carry around extra cards in their wallet etc.
 
 
Is there a list of the team readily available? Are there firm plans to expand, and if so, in which directions?
The roadmap indicated a website redesign scheduled for November 2017. Is there an update?
 
We have about 12 people in the core team; about half are code and half are business developers. On the redesigned website we're going to include bios for sure, no one in our team is anonymous. I think we have pretty good coverage of what we need right now, we could always use more people capable of contributing to the core code.
The website design is well underway, we wanted to streamline and add some more things to it so it took longer than originally estimated. It'll looking like after the new year we'll have it ready.
 
 
Would you ever consider renaming the coin to simply "Rai" or any other simplified form other than RaiBlocks?
2. What marketing strategy do you think will push XRB forward from now on as a fully working product. Instant and free, the green coin, "it just works" coin, etc?
3. Regarding security, is "quantum-proofing" a big concern at the moment and how do you guys plan to approach this when the time comes. And how possible would it be for bad actors to successfully implement a 51% attack.
 
  1. Yea there are a few difficulties people have pointed out with our name. People don't know if it's "ray" or "rye". "Blocks" doesn't have a meaning to a lot of people and the name reference might be too esoteric to be meaningful. I'm not prideful so I'm not stuck on a particular name, we'll take a look at what our marketing and business developers say peoples' impressions are and if they have any naming recommendations.
  2. Our marketing strategy is to focus on complete simplicity. Instant and free resonates with enthusiasts and mass adoption will only come when using xrb is absolutely the same experience as using a banking or other payment app. People aren't going to tolerate jargon or confusing workflows when sending or receiving payments.
  3. Quantum computing is going to be an amazing leap for humanity but it's also going to cause a lot of flux in cryptography. The plan I see is the similar to what I did in selecting the cryptographic algorithms we're using right now: look for leaders in academia and industry that have proven implementations and use those as they recommend migration based on computing capability. Quantum vulnerabilities can be an issue in the future but a vulnerable implementation would be an issue right now.
 
 
Hi Colin, lately XRB has been getting frequently compared to and contrasted with Iota. I was hoping that you could give us your thoughts on the differences between the two and what your general vision for the future of Raiblocks is.
 
It's flattering to be compared to IOTA, they have a very talented team building ambitious technology. When looking at design goals I think one thing we're not attempting to approach is transferring a data payload, we're only looking to be a transfer of value.
There are lots of ideas and technology to be developed in the cryptocurrency space and I want RaiBlocks to solve one section of that industry: the transfer of value. I think the best success would be if RaiBlocks was adopted as the global standard for this and crypto efforts could move to non-value-transfer use-cases.
 
 
Do you see XRB becoming the new payment method for commerce. As in, buying coffee, groceries, etc? Do you have plans for combating the HODL mentality so this currency can actually be used in the future of buying and selling?
 
Being a direct transactional payment method is our goal and we're trying to build software that's accessible to everyone to make that happen. I see holding as a speculative tactic anticipating future increases and you're right, it's not in line with day-to-day transactions. I think as market cap levels off to a more consistent value the reason for holding and speculating goes away and people can instead focus on using it as a value exchange.
 
 
Are you planning to expand the RaiBlocks team over the next 12 months? If so, what types of positions are you hoping to fill?
 
Right now we have about 12 people, half core and half business developers. I think this count is good for working on what we're doing right now which is getting wallets and exchanges worked on. Ideally people outside our team will start developing technology around xrb taking advantage of the network effect to build more technology faster than we could internally. That being said we're going to look in a few months to see if there's anything out there people aren't developing that should be and we'll see what people we need to make it happen.
 
 
At what point did you make the decision to make RaiBlocks your full time job? What was the decision making process like?
 
It was after the week where the core team met here in Austin to brainstorm our next steps. I saw how much enthusiasm there was from crypto-veterans with having a working system capable of being scaled up to what's needed for massive adoption and it seemed the risk needed to be taken.
It was hard decision to make, working in the crypto and finance is rough and I like using my leisure time to work on inventions. Of all the projects ideas I have this one seemed to have a high chance of success and the benefits of having a working, decentralized currency would be huge.
 
 
Hi Colin, what prevents great cryptos like XRB from being listed on bigger exchanges?
 
It's good to understand where the biggest headaches for exchanges lie: support tickets, operations, and development. If a technology is different from what they already have, that takes development time. If the software is new and not widely run, that's potential operations time to fix it which results in support tickets and community backlash. Adding BitCoin clones or Ethereum ICO coins is easy because they don't have these associated risks or costs.
 
 
What can the average RaiBlocks-Fan do to help XRB getting adopted / growing / expanding?
 
I think the best thing an average fan could do is word of mouth and telling people about RaiBlocks. More people being aware of it means there's the possibility someone who's never heard of it before would be interested in contributing as a vendor, developer, exchange etc.
Good advertising or marketing will never be able to reach everyone as well as someone reaching out within their own network.
 
 
Ray or Rye?
 
Ray hehe. It comes from https://en.wikipedia.org/wiki/Rai_stones Lots of people don't know the answer though >_<
 
 
Are you looking at incorperating a datamarket like iota in the future? Given the speed of the network a data exchange for highly accurate sensors could be a game changer.
Further more, are there any plans to increase the Dev team in the future? I read on the FAQ you'd like RaiBlocks to be somewhat of a protocol which is a huge ambition. A Dev from say the Mozilla foundation or other could further cement this ambitious project.
 
Transmitting data payloads is something we probably won't pursue. The concern is adding more features like this could cause us to make decisions that compromise the primary focus points of low-cost and speed for transferring value.
We can add people to the dev team though I think we'll get the most traction by teaching teams in these other organization how to use RaiBlocks so they can be the experts on the subject in their companies.
 
 
Does the actual RaiBlocks version require "Each node in the network must be aware of all transactions as they occur" part? This was in the old white paper and is asked here:
https://www.reddit.com/RaiBlocks/comments/7ksl81/some_questions_regarding_raiblocks_consensus/?st=jbdmgagc&sh=d1c93cca
 
If a node wants to independently know the balances of all accounts in the system, it must at a minimum have storage to hold accounts and all their balances. In order to know all balances it must either listen to transactions as they're happening or bootstrap from someone else to catch up as what happens on startup.
 
 
There is no incentive to run nodes. Some people will do it because it is cheap as fuck (as I read an raspberry pie can run it). But I think not many people will do it.
1. How important are the nodes in terms of further scaling?
2. On which network conditions where the 7000 transactions met?
3. What happens if the transactions per day tenfolds but the nodes don't?
4. How much better will Rai scale if someone sets up, lets say, 100 nodes with awesome hardware and network?
5. How many nodes could be enough for visa level scaling?
6. Which further improvements can be made for Rai IF there needs to be other improvements than setting up new nodes? Are there other concepts like 2nd layer solutions planned?
7. How will Rai defend network attacks?
I know there is an PoW part. But since there a also large attacks on high cap coins on which people invest millions of $ to congest a network..Is it possible that the Rai network will be unusable for several days because of this?
 
I think the out-of-protocol incentives to running a node are under-referenced yet I see them as the primary driving factor for participating as a whole. Node rewards come at the expense of other network participants and in this closed loop the incentives aren't enough to keep a cryptocurrency alive. Long-term there needs to be a system-level comparative advantage to what people are already using for a transfer of value. If someone is using xrb and it saves them hundreds or thousands of dollars per month in fees and customer irritation in delayed payments, they have a direct monetary incentive to using xrb and a monetary incentive in the health of the system.
1) More nodes provides transaction and bootstrapping redundancy. More representatives provides decentralization.
2) The 7k TPS was a profile how fast commodity hardware could eat transactions. All of the real-world limits are going to be something hardware related, either bandwidth, IO, or CPU.
3) The scaling is more related to the hardware the nodes are using rather than the node count. If there was 10x increase in transactions it would use 10x the bandwidth and IO as nodes observe transactions happening.
4) If someone made 100 representative nodes the network would be far more decentralized though the tx throughput would be unchanged since that's a per-node requirement.
5) Scaling to Visa will have high bandwidth and IO requirements on representatives associated with doing 10k IOPS. Datacenter and business class hardware will have to be enough to handle the load.
6) Second layer solutions are always an option and I think a lot of people will use them for fraud protection and insurance. Our primary focus is to make the 1st layer as efficient and high speed as possible so a 2nd layer isn't needed for daily transactions.
7) Defending against network attacks will be an ongoing thing, people like breaking the network for lulz or monetary gain i.e. competing cryptos. If there are attacks we haven't defended against or considered it'll be a matter of getting capable people to fix issues.
 
 
Are you open to changes to the name? (Rai)
What are your plans with regards to marketing?
 
I'm open to it, people get confused on ray/rye pronunciation, not the greatest first impression.
As far as timing I think marketing works best after a more user friendly wallet and integration in to more exchanges otherwise we're sending traffic to something people can't use. We're going to start by focusing on the initial adopters which will likely be enthusiasts and going forward work on the next set of users that aren't enthusiasts but want to drive savings for their business through lower payment processing costs.
 
 
A recent tweet(https://twitter.com/VitalikButerin/status/942961006614945792) from Vitalik Buterin. Could this be a case with testing the scalability of RaiBlocks as well and in reality we wouldn't come close to 7000tx/s?
 
I think he's definitely right, a lot of the TPS numbers are synthetic benchmarks usually on one system. The biggest thing hindering TPS are protocol-specific limits like hard caps or high contention design. The next biggest thing will be bandwidth and then disk IO. Some of these limits can be improved by profiling and fixing code instead of actual limits in the hardware.
We want to get better, real world numbers but our general opinion is that the RaiBlocks protocol is going to be limited by hardware, rather than design.
 
 
Are you planning to add a fiat gateway to the main website and mobile wallet?
 
If we can make it happen for sure, that seems like a very user-focused feature people would want.
The difficulty at least in the US is the money-transmitter licenses which are hard to obtain. More than likely if this functionality was added it'd be a partnership with an established financial company that has procedures in place to operate within countries' regulations.
 
 
I saw a post on /iota that claims that their quantum resistance is a main benefit over raiblocks. Can you go into detail about this? explain any plans you have to let XRB persevere through upcoming quatum revolution?
 
I think everyone with cryptography in their programs is keeping an eye on quantum cryptography because we're all in the same boat. I don't have cryptanalysis credentials so I didn't feel comfortable building an implementation and instead chose to use one off-the-shelf from someone with assuring credentials.
There are some big companies that have made small mistakes that blow up the usefulness of the entire algorithm, it's incredibly easy to do. https://arstechnica.com/gaming/2010/12/ps3-hacked-through-poor-implementation-of-cryptography/
 
 
Hello Colin, is any security audit to the source code planned?
 
We don't have one contracted though both internally and externally this is an important thing people want completed.
 
 
Do you have plans to radically change the interface of the desktop wallet, and to develop a universal, cross-platform, clean and simple UX design for the wallet? This will be huge for mass adoption in my humble opinion
 
I completely agree, we do plan on completely redoing the desktop wallet, both from a UX standpoint and maintainability so UI code doesn't need to be in C++. This could also remove out dependency on QT which is the least permissive license in the code right now.
I write code better than I design GUIs ;)
 
 
It seems like Raiblocks is aiming to be a true currency with it's lacking of transaction fees and fast confirmation times, which is great! If Raiblocks can add some kind of support for privacy then I think it got the whole picture figured out in terms of being "digital cash". Do you currently have any plans to implement privacy features into RaiBlocks?
If Raiblocks is unable to do this, it will still be a straight improvement over things like LTC which are currently being used as currency, but I don't think it will be able to become THE cryptocurrency without privacy features.
 
I love the concept of privacy in the network and it's a hard thing to do right. Any solution used would need to be compatible with our balance-weighted-voting method which means at least we'd have to know how much weight a representative has even if we're hiding actual account balances.
To be fully anonymous it would have to be hide accounts, amounts, endpoints, and also timing information; with advanced network analysis the timing is the hardest thing to hide. Hopefully some day we can figure out an efficient privacy solution though the immediate problem we can solve is making a transactional cryptocurrency so we're focusing on that.
 
 
Could you provide an analysis on the flaws of RaiBlocks? Is it in any way, shape, or form at a disadvantage compared to a blockchain based ledger like bitcoin? There has to be drawbacks, but I haven’t found any.
Do you plan on expanding the dev team and establishing a foundation? Also, how much money is in the development pool?
 
One drawback is to handle is our chain-per-account model and asynchronous updates it takes more code and design. This means instead of one top-block hash for everything there's one for each account. This gives us the power of wait-free asynchronous transactions at the cost of simplicity.
After we finish up things like the wallet, website, and exchange integration we'll be looking at seeing what dev resources we need to build tech if no one else is already working on a particular thing. We have about 6 million XRB right now so we've made the existing dev funds go a long way. If something expensive to build came along and dev funds wouldn't cut it we could look at some sort of external funding.
 
 
How big of a problem is PoW for exchanges and what are potential solutions?
 
Considering how much exchanges stand to make through commission I don't see the cost as a barrier, it's just an abnormal technology request compared to other cryptocurrencies.
We're working on providing a service exchanges can use in the interim until they set up their own infrastructure to generate the work. Other options are containers people can use on cloud services to get the infrastructure they need until they want to invest in their own.
 
 
It's my understanding that since everything works asynchronously, in the case of double spending there is a chance a merchant would receive the block that would be later invalidated and have it shown in it's wallet, even if a little later (1 minute?) the amount would correct when the delegates vote that block invalid. Is there any mechanism to avoid this? Maybe tag the transactions in the wallet as "confirming" and then "confirmed" after that minute? Is there actually any certain way for a wallet to know, in a deterministic/programable way, at what moment a transaction is 100% legit? (for example if the delegates are DoS'ed I guess that minute could be much longer). I know this is an improbable case, but still...
 
Yea you're hitting a good point, the consensus algorithm in the node is designed to wait for the incoming transaction to settle before accepting it in to the local chain for the exact reason you listed, if their transaction were to be rolled back the local account would be rolled back as well.
We can trend the current weight of all representatives that are online and voting and make sure we have >50% of the vote weight accounted for before considering it settled.
 
 
Hey Colin, will you eventually have support for a Trezor or other hard wallet?
 
Yea we'll definitely work with companies like Trezor that are interested in being a hardware wallet for xrb. It's just a matter of making sure they support the signing algorithms and integrating with their API.
 
EDIT: I'm getting a lot of messages asking me how to buy XRB. I used this guide which was very helpful: https://www.reddit.com/RaiBlocks/comments/7i0co0/the_definitive_guide_to_buying_and_storing/
In short -- buy BTC on coinbase, open up an account on bitgrail, transfer that BTC from coinbase to bitgrail, then trade your BTC for XRB. It's a pain right now because it's such a new coin, but soon it will be listed on more exchanges, and hopefully on things like shapeshift/changelly. After that it will be much easier... but until then, the inconvenience is what we have to pay in order to get into XRB while its still early.
EDIT: BAD SCRIPT, BAD!
submitted by atriaxx to CryptoMarkets [link] [comments]

TOP 3 ICO in November

1. BitDegree

Education seems to be of those areas where a blockchain could be used to improve most aspects of the traditional ways of interacting, transacting, and storing data. It's also an area that has received relatively little attention compared to the things like banking. BitDegree is an online education platform on the Ethereum blockchain. They want to improve return on investment for learners and the availability of people with the skills that companies need. Companies act as sponsors, buying tokens in the recruitment process, while building their brand and advertising. For students, coins are used to purchase educational services and as an incentive structure similar to scholarships.

Market

Team

BitDegree has a strong team that contains a good mix of roles, including several people with technical experience (as opposed to the teams composed almost entirely of businesspeople that we see all too often). The CEO previously built the cloud web hosting provider 000webhost. The team does not come from a background in education or education administration/management. However, they seem to have a good understanding of the market and its problems.
Notable advisors include: - Jeff Burton, Co-founder of Electronic Arts - Arnas Stuopelis, CEO of web hosting provider Hostinger

Relevant Partners

Accountability (where BitDegree suffers a bit)

Summary

ICO Dates

December 1 - December 31

2. Qchain

I've been following Qchain for some time now, and they've just recently started their ICO. Qchain is a marketing and advertising platform built on the Ethereum and NEM blockchains. Their main product is an accessible direct-buy ad marketplace, with a focus on native advertising and integrated personal data management features. They want to use blockchain tech to provide more control to advertisers and publishers, increase transparency and privacy, and cut out overhead from middle-men. In my opinion, this is one of the more underhyped and undervalued ICOs.

Market

Team

Qchain has a strong team that hails from a variety of big names in the media, tech, financial, and academic sectors. One of the biggest draws here is that most of the team has both a technical background and varying degrees of experience in advertising, marketing, financial, and media roles. They have one of the most relevant advisory boards I've seen for any ICO.
Notable advisors include: - Lon Wong, President of the NEM Foundation - Kailin O'Donnell, NEM Foundation founding member and core team developer - Misho Ceko, COO of the University of Chicago Harris School of Public Policy - Grant Fondo, Chair of the Blockchain Technology Practice at Goodwin Procter LLP - Evgeny Yurtaev/Alexey Bashlykov, CEO/CTO of Zerion (one of the original Solidity development groups)

Relevant Partners

Accountability

Summary

ICO Dates

Now - December 5

3. Bankera

Though certainly not a small fish, I'm including Bankera here because it's actually an interesting project with long-term prospects, among the field of various financial ICOs that have sprung up.

Team

They have a solid team, with a mix of technical experience and relevant industry experience. Unlike most of the banking ICOs, they are building off an existing product -- Spectrocoin, a cryptocurrency exchange and wallet service that includes a debit card for spending with Bitcoin.
Notable advisors include: - Lon Wong, President of the NEM Foundation - Modestas Kaseliauskas, Former Head of Lithuania's State Tax Inspectorate - Antanas Guoga/Eva Kaili, European Parliament members
While Spectrocoin is a far cry from Bankera's stated objectives, this shows they actually have existing financial infrastructure to attempt something as ambitious as Bankera. Contrast this to the likes of Monaco and Centra, which have yet to answer to investors or deliver a coherent plan, and are perhaps most notable for defrauding investors by selling them on a made-up partnership with VISA (way to burn a bridge with the world's largest card processor outside of China). Bankera is aiming for legitimate integration into the banking sector, with banking licenses in the EU, UK, Japan, and Singapore on the roadmap (the US is not specifically mentioned, more on this later).

Accountability

Investor Caveat

A lot of ICOs are using a blanket claim of being a 'utility token' and not a security (however most do not have any clear utility like BitDegree and Qchain do).
Bankera's token is explicitly a security, as the entire purpose of the BNK token is to entitle holders to a dividend from Bankera and SpectroCoin's revenue. This in and of itself is okay, as Bankera intends to integrate into the existing banking system and obtain banking licenses according to its whitepaper. The first con associated with this is that by integrating into existing banking sectors subjects, it itself to much of the central control and limitations of traditional banking.
The other potential issue, which is probably of greater interest to token buyers, is how the token is treated in locales where Bankera has not established legitimate banking ties. While this is probably not a problem Bankera's home locale of Lithuania, it will likely be an issue in large markets such as the US (which Bankera has not named among its target markets in its whitepaper roadmap) if Bankera does not specifically target these markets and acquire the appropriate local licenses. For example, in the US, Bankera's model blatantly violates federal securities laws unless Bankera registers with the SEC and obtains a money transmitter license.
As for the token itself and investors, this becomes problematic if (when) the SEC and its counterparts in other countries start imposing regulations on cryptocurrency exchanges. Otaining proper licenses to conduct banking, money transmission, and securities issuing activities are not simple, fast, or cheap processes. Following the US/SEC example, a plausible worst-case scenario would see BNK tokens ineligible to listed on (or be delisted from) US-based exchanges (which includes Poloniex) until all the bureaucracy is sorted out. Of course, this would present liquidity problems to all of the investors in these locations. While Bankera may end up getting the proper licenses in the US and elsewhere, this presents a tricky situation in general, as you have the traditional banking and securities regulations of every country versus a blockchain token which is an inherently global asset.

ICO Dates

November 27 - ?
submitted by Marsh_1 to icocrypto [link] [comments]

Can I legally sell Bitcoin, without a MSB license and KYC laws, just as I can sell XYZ widgets? I know I need a business license and to pay taxes!

I'm looking at the state code, and I can't find anything that says I can't, per se... it doesn't seem Bitcoin falls within the verbiage of the laws governing such things since Bitcoin is NOT a currency in the United States.
CHAPTER 32A. LAND SALES; FALSE ADVERTISING; ISSUANCE AND SALE OF CHECKS, DRAFTS, MONEY ORDERS, ETC. ARTICLE 2. CHECKS AND MONEY ORDER SALES, MONEY TRANSMISSION SERVICES, TRANSPORTATION AND CURRENCY EXCHANGE. §32A-2-1. Definitions.
 (1) "Commissioner" means the Commissioner of Financial Institutions of this state. (2) "Check" or "payment instrument" means any check, traveler's check, draft, money order or other instrument for the transmission or payment of money whether or not the instrument is negotiable. The term does not include a credit card voucher, a letter of credit or any instrument that is redeemable by the issuer in goods or services. (3) "Currency" means a medium of exchange authorized or adopted by a domestic or foreign government. (4) "Currency exchange" means the conversion of the currency of one government into the currency of another government, but does not include the issuance and sale of travelers checks denominated in a foreign currency. Transactions involving the electronic transmission of funds by licensed money transmitters which may permit, but do not require, the recipient to obtain the funds in a foreign currency outside of West Virginia are not currency exchange transactions: Provided, That they are not reportable as currency exchange transactions under federal laws and regulations. (5) "Currency exchange, transportation, transmission business" means a person who is engaging in currency exchange, currency transportation or currency transmission as a service or for profit. (6) **"Currency transmission" or "money transmission" means** engaging in the business of **selling** or **issuing checks or the business of receiving currency**, the payment of **money**, or other value that substitutes for money by any means for the purpose of transmitting, either prior to or after receipt, that currency, payment of money or other value that substitutes for money by wire, facsimile or other electronic means, or through the use of a financial institution, financial intermediary, the Federal Reserve system or other funds transfer network. It includes the transmission of funds through the issuance and sale of stored value**??** or similar **prepaid products' cards** which are intended for general acceptance and used in commercial or consumer transactions. (7) "Currency transportation" means knowingly engaging in the business of physically transporting currency from one location to another in a manner other than by a licensed armored car service exempted under section three of this article. (8) "Licensee" means a person licensed by the commissioner under this article. (9) "Money order" means any instrument for the transmission or payment of money in relation to which the purchaser or remitter appoints or purports to appoint the seller thereof as his or her agent for the receipt, transmission or handling of money, whether the instrument is signed by the seller, the purchaser or remitter or some other person. (10) "Person" means any individual, partnership, association, joint stock association, limited liability company, trust or corporation. (11) "Principal" means a licensee's owner, president, senior officer responsible for the licensee's business, chief financial officer or any other person who performs similar functions or who otherwise controls the conduct of the affairs of a licensee. A person controlling ten percent or more of the voting stock of any corporate applicant is a principal under this provision. §32A-2-2. License required. 
Via Black's Law Dictionary, just because I was curious what "money" meant in leagalese, and it appears to only mean currency issued by a government.
What is MONEY?
A general, indefinite term for the measure and representative of value; currency; the circulating medium ; cash. “Money” is a generic term, and embraces every description of coin or bank-notes recognized by common consent as a representative of value in effecting exchanges of property or payment of debts. Hopson v. Fountain. 5 Humph. (Tenn.) 140. Money is used in a specific and also in a general and more comprehensive sense. In its specific sense, it means what is coined or stamped by public authority, and has its determinate value fixed by governments. In its more comprehensive and general sense, it means wealth.
Bitcoin is NOT coined nor stamped by public authority and has no value determined by governments. It sounds like currency is only money if the IMF controlled it's issuance?
Also this: http://techcrunch.com/2014/03/25/irs-rules-bitcoin-is-property-not-currency/
submitted by WVBitcoinBoy to Bitcoin [link] [comments]

Adam S. Tracy Breaks Down FINCEN’s Regulation of Cryptocurrency

https://www.youtube.com/watch?v=8qbUG05jKPY
Cryptocurrency attorney Adam S. Tracy discusses FINCEN’s regulation of cryptocurrency and the impact on traders, cryptocurrency exchanges, and OTC bitcoin dealers. Email: [email protected]
— —
A former competitive rugby player, serial entrepreneur and, trader attorney, Adam S. Tracy offers over 17 years of progressive legal and compliance experience in the areas of corporate, commodities, cryptocurrency, litigation, payments and securities law. Adam’s experience ranges from commodities trader for oil giant BP, initial public offerings, M&A, to initial coin offerings, having represented both startups to NASDAQ-listed entities. As an early Bitcoin adapter, Adam has promoted growth of cryptocurrency and offers a unique approach to representing crypto-clients. Based in Chicago, IL, Adam graduated from the University of Notre Dame with dual degrees in Finance and Computer Applications and would later obtain his J.D. and M.B.A. from DePaul University. Adam lives outside Chicago with his six animals, which is illegal where he lives.
Email me: [email protected]
Primary website: http://www.tracyfirm.com
Twitter: https://twitter.com/TracyFirm
Youtube: https://www.youtube.com/channel/UCVOa...
Linkedin: https://www.linkedin.com/in/adamtracy/
Facebook: https://www.facebook.com/thetracyfirm/
Instagram: @adamtracyattorney
Telegram: @adam_tracy
Skype: @adamtracyesq
Email me: [email protected]
TRANSCRIPTION:
Obviously, there’s a huge emphasis on compliance from a cryptocurrency standpoint with respect to the SEC and to a lesser extent to the CFTC. But the one government agency that’s really put forth the most guidance, if you will, would be FinCEN. And we’ve talked about money service business registration in past, and FinCEN is the government agency that is dealt with enacting the tenants of the Bank Secrecy Act and overseeing money service businesses. And so FinCEN has put out guidance that sort of defines the players in the cryptocurrency market. And those three players are: users, administrators, and exchangers.
And so user is someone who uses virtual currency or cryptocurrency to buy and sell goods. FinCEN has come out directly and said that a user is not a money transmitter and hence not a money service business. An exchanger is one who deals in the exchange of cryptocurrency — the buying and selling of cryptocurrency in exchange for real or other virtual currencies. And in most cases FinCEN and has found that a exchanger is a money transmitter and thus a money service business, and subject to registration as a money service business. Then finally, an administrator, which is the interesting sort element here, is a party that issues virtual currency and has the ability to redeem that virtual currency. And in most cases FinCEN has found that an administrator is, in fact, a money transmitter and thus a money service, and is required to register as a money service business. And it’s a weird implication, or important implication, for ICO companies because they are obviously issuing cryptocurrency, but the caveat or sort of the tenant where I think most ICO companies fall out of the definition of an administrator is that most ICO companies don’t have the ability to redeem their cryptocurrency, right? They issue it, but they don’t redeem it. So therefore they wouldn’t fall into that definition of a money transmitter. So, you know, it’s a very strange implication because there are some ICOs out there that, you know, have this innate ability to redeem whether through conversion or some other mechanism the cryptocurrency that they’ve issued and sold. And technically by the book, according to FinCEN, you are the money transmitter and you need to register as a money service business or face severe fines, penalties, and the like. That’s sort of point one that people, I think, overlook.
Point two is, you know, how do you, sort of, fall outside the ambit of this, if you are a speculator, right? Let’s say I’m an individual who engages in the buying and selling of cryptocurrency or the arbitrage of different cryptocurrencies for my own account. FinCEN has come out with a decision that actually exempts such activity from the definition an exchanger, which across the board is almost always a money transmitter and thus required to register as a money service business. So, you know, there’s a great emphasis on the SEC, and where the SEC is going to fall, and to some extent the CFTC. And that’s valid. That’s super valid, because ultimately that’s cryptocurrency and the large part is a function of an ICO and raising capital for businesses, right? And so the question becomes are we engaging in offerings of securities? And that’s another discussion for another time. But what is codified, what is real, what people overlook, in my opinion my humble opinion for it’s worth, is FinCEN, and their money service business registration and the money transmitter laws that are associated there with. So, it’s definitely something to consider and definitely something to check out, you know, depending on what player you are within the the ecosphere of cryptocurrency. So check me out — TracyFirm.com.
submitted by bitattorney to u/bitattorney [link] [comments]

Skywire - Try and censor this, I dare you.

Synth posted this recently - http://whiteboard.ping.se/SDWSPR. Why? Remember that Skywire is designed with these in mind:

1) Asynchronous.

"Asynchronous data is data that is not synchronized when it is sent or received. In this type of transmission, signals are sent between the computers and external systems or vice versa in an asynchronous manner. This usually refers to data that is transmitted at intermittent intervals rather than in a steady stream, which means that the first parts of the complete file might not always be the first to be sent and arrive at the destination. Different parts of the complete data are sent in different intervals, sometimes simultaneously, but follow different paths toward the destination. The transfer of asynchronous data doesn’t require the coordination or timing of bits between the two endpoints."

Advantages:

It is more flexible and devices can exchange information at their own pace. Individual data characters can complete themselves so that even if one packet is corrupted, its predecessors and successors will not be affected.
It does not require complex processes by the receiving device. This means that an inconsistency in the transmission of data does not result in a big crisis, since the device can keep up with the data stream. This also makes asynchronous transfers suitable for applications where character data is generated in an irregular manner.

Disadvantages:

The success of these transmissions depends on the start bits and their recognition. This can be easily susceptible to line interference, causing these bits to be corrupted or distorted.
A large portion of the transmitted data is used for control and identification bits for headers and thus carries no useful information related to the transmitted data. This invariably means that more data packets need to be sent.

Choco's way of understanding it:

2) Channel bonding

"Channel bonding is an arrangement of communications links in which two or more links are combined for redundancy or increased throughput. Examples include links associated with network interfaces on a host computer, or downstream and upstream channels within a DOCSIS cable modem connection."

Choco's way of understanding it:

3) Economy based on data forwarding and downloading

The new Decentralized Internet, a wireless mesh network that pays you for supporting it.

Choco's way of understanding it:

4) Will even work on low-computationally intensive CPU boards like Raspberry Pi's.

Self-explanatory. See Skyminer.

Choco's way of understanding it:

Spelling it out.

Digital transmission of 0.1 watt (20dBm) from Sweden to Australia, over 15000km using the WSPR protocol. For comparison, your cell phone uses many times this transmission power. :-)
The extreme application possible with this design means it is nearly impossible to censor anything. The best you can do is make it annoyingly slow to transmit data, you will not kill it. Skywire's uncensorable data transmission is akin to Bitcoin's original idea of uncensorable money.
References:
https://www.techopedia.com/definition/26893/asynchronous-data
https://en.wikipedia.org/wiki/Channel_bonding
submitted by ChocolateyLab to skycoin [link] [comments]

Adam Tracy Discusses The Unlicensed Crypto Exchange

https://www.youtube.com/watch?time_continue=34&v=aoqJ7SxVwtA
Attorney Adam Tracy discusses three jurisdictions to operate an unlicensed cryptocurrency exchange from and the procedure and pitfalls associated therewith.
— —
A former competitive rugby player, serial entrepreneur and, trader attorney, Adam S. Tracy offers over 17 years of progressive legal and compliance experience in the areas of corporate, commodities, cryptocurrency, litigation, payments and securities law. Adam’s experience ranges from commodities trader for oil giant BP, initial public offerings, M&A, to initial coin offerings, having represented both startups to NASDAQ-listed entities. As an early Bitcoin adapter, Adam has promoted growth of cryptocurrency and offers a unique approach to representing crypto-clients. Based in Chicago, IL, Adam graduated from the University of Notre Dame with dual degrees in Finance and Computer Applications and would later obtain his J.D. and M.B.A. from DePaul University. Adam lives outside Chicago with his six animals, which is illegal where he lives.
Primary website: http://www.tracyfirm.com
Twitter: https://twitter.com/TracyFirm
Youtube: https://www.youtube.com/channel/UCVOa...
Linkedin: https://www.linkedin.com/in/adamtracy/
Facebook: https://www.facebook.com/thetracyfirm/
Instagram: @adamtracyattorney
Telegram: @adam_tracy
Skype: @adamtracyesq
Email me: [email protected]
TRANSCRIPTION:
I get this question a lot, and that is do you need a license for an offshore crypto exchange? And answer is no, okay, with some caveats to it. And that main caveat being where you’re domiciled or where you purport to operate from. As I discussed with, you know, like Vanuatu (places like that), the process of domiciling there and operating requires a license in that jurisdiction. In that jurisdiction it is very easy get what is a pseudo securities 4X license. There’s three particular jurisdictions, which allow 4X activity, which includes crypto exchange but doesn’t require license, and those ways are Nevis (which I’m a big fan of and I’ve spoke about before), Saint Vincent, and the Seychelles. None of them require a license to operate a foreign exchange dealer or a foreign exchange broker. That’s why you see a great deal of 4X binary options and other type of companies operating from those jurisdictions. So, it’s great in a sense. One of the pitfalls is that without a license banking becomes very difficult, and banking is already very difficult when you’re dealing with crypto. So now you’re compounding it in the sense that you’re operating an unlicensed 4X exchange. Now I’ve read, and I can’t verify it, that about 90% of 4X brokers actually start out as being unlicensed. And that may, in fact, be accurate, but as you as you grow it does make some sense, especially from a banking perspective and from a transparency perspective, to become licensed, whether that’s like in class C jurisdiction like a Vanuatu or Cyprus or Malta or Gibraltar, or like a Class B, even in UK and Australia, then class A which would be like the United States. So, it’s an interesting thing. And so, you can operate without the license, but you still have to be careful with respect to the jurisdictions in which you’re operating, right? And that’s particularly germane to the United States, right? So if you’re going to operate a crypto exchange based in one these three locales that don’t require any particular licensure, you have to be sure that you’ve got the requisite licensure in the United States, right? And if that entails if you’re dealing Fiat, having money transmitter license, if you’re not dealing with Fiat, at a minimum being money service business. And so the money service business registration (which I’ve also spoke about before) requires you register with FinCEN, and implicates and triggers all your AML KYC Bank Secrecy Act compliance and the whole scheme, which you may be doing anyway, right? It’s good practice to do anyway, but, you know, just because your operating from an unlicensed jurisdiction, it doesn’t mean that you escaped U.S. regulation if you’re going to take US customers. Which is particularly problematic if you’re a US citizen, because, of course, you’re opening the door to a fair amount of liability. So those three nations: Nevis, Saint Vincent, the Seychelles — great places to consider if you’re going to start a crypto exchange or even a 4X Broker, but it comes with its own set of challenges. And when you look at, you know, the ability to get licenses in places like Vanuatu especially, you know, for the cost versus the problems you encounter, it may not be the best place, but it is entirely legal and legitimate to operate from those locales. So hit me up TracyFirm.com. [email protected] is my email, and I’ll talk to soon.
submitted by bitattorney to u/bitattorney [link] [comments]

Online Platforms Trading Cryptocurrencies; Continued Uncertainty In Crypto Space

I have been writing often about the cryptocurrency marketplace and the SEC and other regulators’ statements and concerns about compliance with the federal securities laws. On July 25, 2017, the SEC issued a Section 21(a) Report on an investigation related to an initial coin offering (ICO) by the DAO, concluding that the ICO was a securities offering. In that Report the SEC stated that securities exchanges providing for trading must register unless an exemption applies. In its numerous statements on cryptocurrencies since then, the SEC has consistently reminded the public that exchanges that trade securities, including cryptocurrencies that are securities, must be licensed by the SEC.
The SEC has also stated that as of today, no such licensed securities cryptocurrency exchange exists. However, a few CFTC regulated exchanges have now listed bitcoin futures products and, in doing so, engaged in lengthy conversations with the CFTC, ultimately agreeing to implement risk mitigation and oversight measures, heightened margin requirements, and added information sharing agreements with the underlying bitcoin trading platforms.
The topic of the registration of exchanges for trading cryptocurrencies is not new to regulators. Years before the Section 21(a) DAO Report and crypto craze, on December 8, 2014, the SEC settled charges against BTC Virtual Stock Exchange and LTC-Global Virtual Stock Exchange, which traded securities using virtual currencies, bitcoin or litecoin. According to the SEC release on the matter, “the exchanges provided account holders the ability to use bitcoin or litecoin to buy, sell, and trade securities of businesses (primarily virtual currency-related entities) listed on the exchanges’ websites. The venues weren’t registered as broker-dealers despite soliciting the public to open accounts and trade securities. The venues weren’t registered as stock exchanges despite enlisting issuers to offer securities for the public to buy and sell.” The exchanges charged and collected transaction-based compensation for each executed trade on the platforms.
Since the Section 21(a) DAO Report, most of the statements from the SEC and other regulators have focused on ICOs and the issuance of cryptocurrencies as opposed to focusing on the exchanges that trade cryptos. On March 7, 2018, the SEC finally issued a public statement directed specifically to online platforms for the trading of digital assets – i.e., cryptocurrencies. This blog will summarize that statement. Also, at the end of this blog is a list with links to my numerous other blogs on the topic of distributed ledger technology (blockchain), cryptocurrencies and ICOs.
SEC Statement on Potentially Unlawful Online Platforms for Trading Digital Assets
Online trading platforms have become prevalent for the buying and selling of coins and tokens, including new cryptocurrencies offered in initial coin offerings (ICOs). Many platforms bring buyers and sellers together in one place and offer investors access to automated systems that display priced orders, execute trades, and provide transaction data. If a platform offers trading of digital assets that are securities and operates as an “exchange,” as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration. As mentioned above, no such SEC-registered platform exists as of today.
In its statement, the SEC cautions investors that “[T]o get the protections offered by the federal securities laws and SEC oversight when trading digital assets that are securities, investors should use a platform or entity registered with the SEC, such as a national securities exchange, alternative trading system (‘ATS’), or broker-dealer.”
The SEC is concerned that online platforms have the appearance of regular licensed securities exchanges, including using the word “exchange” when they are not. The SEC does not review the standards these “exchanges” use to pick or vet digital assets and cryptocurrencies, the trading protocols used to determine how orders interact and are executed, nor any internal controls or procedures of these platforms. Furthermore, the SEC warns that data provided by these trading platforms, such as bid and ask prices and execution information, may lack integrity.
The SEC provides a list of questions for investors to ask when considering trading on an online platform, including:
Registration or Exemption of an Exchange
Section 5 of the Exchange Act of 1934, as amended (“Exchange Act”) makes it unlawful for any broker, dealer, or exchange, directly or indirectly, to effect any transaction in a security, or to report any such transaction, in interstate commerce, unless the exchange is registered as a national securities exchange or is exempted from such registration. A national securities exchange registers with the SEC under Section 6 of the Exchange Act.
Section 3(a)(1) of the Exchange Act defines an “exchange” as “any organization, association, or group of persons, whether incorporated or unincorporated, which constitutes, maintains, or provides a market place or facilities for bringing together purchasers and sellers of securities or for otherwise performing with respect to securities the functions commonly performed by a stock exchange as that term is generally understood….” Exchange Act Rule 3b-16 further defines an exchange to mean “an organization, association, or group of persons that: (1) brings together the orders for securities of multiple buyers and sellers; and (2) uses established, non-discretionary methods (whether by providing a trading facility or by setting rules) under which such orders interact with each other, and the buyers and sellers entering such orders agree to the terms of the trade.” The SEC has also stated that “an exchange or contract market would be required to register under Section 5 of the Exchange Act if it provides direct electronic access to persons located in the U.S.”
According to the SEC website, as of today there are 21 licensed exchanges registered with the SEC. Exchanges that trade securities futures are registered with the SEC through a notice filing under Section 6(g) of the Exchange Act. There are 5 such registered exchanges. There are two exchanges that the SEC has exempted from registration on the basis of limited volume transactions.
Continued Uncertainty
Although the SEC is certainly correct that an online trading platform that trades securities must be licensed by the SEC, that would not be the case if the asset being traded is not a security. In fact, if the asset is a currency (and not a security) or a “thing” such as loyalty points, no US federal agency would regulate its trading. The SEC only regulates the trading of securities and security-related products. The CFTC has regulatory oversight over futures, options, and derivatives contracts on virtual currencies and has oversight to pursue claims of fraud or manipulation involving a virtual currency traded in interstate commerce. Beyond instances of fraud or manipulation, the CFTC generally does not oversee “spot” or cash market exchanges and transactions involving virtual currencies that do not utilize margin, leverage or financing. Rather, these “exchanges” are regulated as payment processors or money transmitters under state law.
Likewise, no federal regulator has direct jurisdiction over “exchanges” that trade loyalty points such as converting airline points to use for hotels, cars, consumer goods and services, or cash. Online platforms such as www.points.com and www.webflyer.com operate using contractual partnerships with entities that issue loyalty points. In fact, points.com is owned by Points International Ltd., which trades on the TSX and Nasdaq and refers to itself as “the global leader in loyalty currency management.” Certainly, today there is a vast difference in the trading of loyalty points versus those looking to make profits in cryptocurrency trading, but there are also analogies, especially with the “currency” side. In a recent 6-K, Points has this to say about the loyalty industry:
Year-over-year, loyalty programs continue to generate a significant source of ancillary revenue and cash flows for companies that have developed and maintain these loyalty programs. According to the Colloquy group, a leading consulting and research firm focused on the loyalty industry, the number of loyalty program memberships in the US increased from 3.3 billion in 2014 to 3.8 billion in 2016, representing an increase of 15% (source: 2017 Colloquy Loyalty Census Report, June 2017). As the number of loyalty memberships continues to increase, the level of diversification in the loyalty landscape is evolving. While the airline, hotel, specialty retail, and financial services industries continue to be dominant in loyalty programs in the US, smaller verticals, including the restaurant and drug store industries are beginning to see larger growth in their membership base. Further, newer loyalty concepts, such as large e-commerce programs, daily deals, and online travel agencies, are becoming more prevalent. As a result of this changing landscape, loyalty programs must continue to provide innovative value propositions in order to drive activity in their programs.
Companies that believe that their crypto is truly a utility with currency value may feel they have more in common with a loyalty point than a security, and regulators have yet to be able to give any level of firm ground on which to stand.
In a hearing before the House Financial Services Committee on May 16, 2018, Stephanie Avakian, co-director of the SEC Division of Enforcement, told lawmakers that the SEC will continue to look at each case involving a cryptocurrency on a facts-and-circumstances basis. Ms. Avakian and co-director Steven Peiken both gave testimony and sat in the hot seat. The Financial Services Committee members were pushing for more definitive input on how ICOs should be defined and regulated, without result. The hearing became contentious, with Committee members becoming frustrated with the lack of direction and lack of certainty from the SEC as to how they define and view cryptocurrencies, other than “on a case-by-case basis” and using the same federal securities principles that already exist – a mantra that has been repeated.
However, the SEC enforcement division could rightfully feel they are being put in an unfair position with this line of questioning. Commissioner Hester M. Peirce warned against rulemaking by enforcement in a recent speech. Ms. Peirce has strong opinions on the subject. She states, “[D]ue process starts with telling individuals in advance what actions constitute violations of the law.” She continues with “[A] related issue to which I am paying attention is the degree to which our enforcement process is being used to push the bounds of our authority. Congress sets the parameters within which we may operate, and we ought not to stray outside those boundaries through, for example, overly broad interpretations of ‘security’ or extraterritorial impositions of the law. Our canons of ethics specifically caution us against exceeding ‘the proper limits of the law’ and argue for us remaining ‘consistent with the statutory purposes expressed by the Congress.’”
In fairness, Ms. Peirce was talking in the context of enforcement as a whole. Not once did she mention cryptocurrencies, ICOs or blockchain in that speech. However, in light of the prevalence of the topic and many industry leaders, politicians and market participants looking to the SEC for guidance on the question of “what is a cryptocurrency” and “how should it be regulated,” I can’t help but think the SEC is looking back at Congress with the same question.
Further Reading on DLT/Blockchain and ICOs
For a review of the 2014 case against BTC Trading Corp. for acting as an unlicensed broker-dealer for operating a bitcoin trading platform, see HERE.
For an introduction on distributed ledger technology, including a summary of FINRA’s Report on Distributed Ledger Technology and Implication of Blockchain for the Securities Industry, see HERE.
For a discussion on the Section 21(a) Report on the DAO investigation, statements by the Divisions of Corporation Finance and Enforcement related to the investigative report and the SEC’s Investor Bulletin on ICOs, see HERE.
For a summary of SEC Chief Accountant Wesley R. Bricker’s statements on ICOs and accounting implications, see HERE.
For an update on state-distributed ledger technology and blockchain regulations, see HERE.
For a summary of the SEC and NASAA statements on ICOs and updates on enforcement proceedings as of January 2018, see HERE.
For a summary of the SEC and CFTC joint statements on cryptocurrencies, including The Wall Street Journalop-ed article and information on the International Organization of Securities Commissions statement and warning on ICOs, see HERE.
For a review of the CFTC role and position on cryptocurrencies, see HERE.
For a summary of the SEC and CFTC testimony to the United States Senate Committee on Banking Housing and Urban Affairs hearing on “Virtual Currencies: The Oversight Role of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission,” see HERE.
To learn about SAFTs and the issues with the SAFT investment structure, see HERE.
To learn about the SEC’s position and concerns with crypto-related funds and ETFs, see HERE.
The Author
Laura Anthony, Esq. Founding Partner Legal & Compliance, LLC Corporate, Securities and Going Public Attorneys 330 Clematis Street, Suite 217 West Palm Beach, FL 33401 Phone: 800-341-2684 – 561-514-0936 Fax: 561-514-0832 [email protected] www.LegalAndCompliance.com www.LawCast.com
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Why the New Zealand government should sanction the creation of a national NZ blockchain dollar to run in tandem with the NZ fiat dollar.

White paper April 29, 2017
The problem: No country today has a national currency built on the new digital-cryptographic-blockchain. This innovative architecture is a prerequisite to engaging with blockchain economic activity which is nascent but burgeoning at the present time.
Blockchain technology, among other things, allows a currency to expand its capabilities beyond what we currently understand a currency to be i.e. a mechanism to transfer intrinsic value. Fiat-based currencies are the incumbent format. Although fiat is now mostly digitised, its architecture is not cryptographic by design, thus rendering it largely unusable within these new emerging economies.
The native state of a cryptographic blockchain currency is in cryptographic digital format; it does not have a physical equivalent as fiat does. This white paper is an overview explaining why this currency is different, why it is needed and how to implement it.
Preamble: There is growing recognition within the fintech (financial technology) community that emerging cryptographic blockchain currencies will be a major disruptive technology. They can be permissioned or permissionless.
Permissionless means they can be created and used without-permission or restriction and they do not recognise borders. They are freely available to any citizen from any country. They’re normally publicly issued with a fixed supply and/or with a predictable inflation rate. No bank or government will have had a hand in issuing them; nor do they control them. Paradoxically permissionless currencies hold real value, albeit unofficially.
A permissioned currency is normally issued and controlled by a government or bank and used by that nation for economic activity. All fiat currencies are permissioned currencies. Currently there is no permissioned cryptographic blockchain currency issued by any government anywhere in the world.
One of the purposes of this paper is to position blockchain cryptographic currencies as the next logical step in the evolution of money.
Blockchain cryptographic currencies, in the broader sense i.e. permissioned or permissionless is a nascent yet powerful new technology which very few people are yet aware of. With a permissionless blockchain currency, any person, group or company can now create their own digitally secure currency-type token to transfer value within and across borders. One of the advantages of cryptographic architecture is that it offers unbreakable anti-counterfeiting security along with the ability to firmly fix the monetary supply. This means no individual or government has the ability to arbitrarily tamper with it. It can be changed only through consensus by the majority of its users. This is in contrast to the current permissioned fiat system where additional money creation can and is arbitrarily created by less than one tenth of one percent of its users i.e. the banking industry and government regulators. The vast majority of users within the fiat system have been indirectly shut out of the process that determines when and how much additional money should be created. Monetary creation more recently renamed quantitative easing has the effect of directly devaluing all currency in circulation and all savings held by individuals.
There is a growing concern for the health of the world’s financial system due to high levels of unprecedented quantitative easing taking place throughout the world today. This has exacerbated an era of protracted low interest rates and historic high levels of debt. In the West, the poor and middle-classes are bearing the brunt of the effects of quantitative easing. Interest rates paid on savings or earnings held in bank accounts are at historical lows, and in real terms are returning negative capital growth. Savers and earners are experiencing the devaluation effect as their money purchases less and less of fundamental asset and service necessities like housing, education and health. For this group of citizens, this reality will become a very powerful incentive to move surplus earnings or savings away from a highly devaluing fiat system and into a permissionless blockchain currency that offers a fixed, stable monetary supply.
What exactly is a blockchain currency? Broadly speaking, the architecture of a blockchain currency is based on digital cryptography. This makes it secure when transferring over the internet. Digital fiat architecture is not cryptographic, making it unsecure to use over the internet.
Digital blockchain currencies have an important commonality with physical fiat cash. When I take a physical $20 note out of my physical wallet or a digitised $20 blockchain currency out of my digital wallet, and transfer it to you, both our wallet balances are updated immediately without an intermediary being involved i.e. no bank. In both cases your balance rises by $20 and mine declines by $20. This type of simple person-to-person value-transfer and simultaneous balance-update with physical fiat currency or digital blockchain currency is impossible with digital fiat currency. Digital fiat must have a bank to act as intermediary between us. It is the bank that actually makes the transfer between us and it is the bank that updates each of our bank balances (usually overnight).
So as to remove all doubt, a physical fiat currency and a digital blockchain currency do not require a bank to act as intermediary when transferring to someone else. This is a powerful, yet unobvious concept to grasp. The ramifications of this statement of fact is far reaching, yet little understood by the average person.
The problem with fiat: Fiat currency has a quasi-symbiotic relationship around ownership and control, shared between a government and banks. It is a marriage of convenience rather than one of choice. Regulation and oversight is supposed to be controlled by government, but in this marriage, an unhealthy imbalance has grown over time that has put the banking industry in a much stronger position as to how money is created and controlled. This imbalance in power has come into existence as a result of new levels of modern debt issuance. Most developed and all undeveloped countries are in some measure deeply indebted to the banking industry, whether the debt be government or private. Total worldwide debt levels are now so high it is unlikely to ever be repaid. When you owe a bank a lot of money they have much more control over how things should be run.
Physical fiat was digitised with the invention of the computer and before the invention of the internet. Digitised fiat consists of two parts the digital currency itself, and the digital infrastructure used to move it around. Before the internet, the banking institution created this digital system to enable their users (every bank account holder) to transfer value between each other. It’s a proprietary closed system (in other words it does not use or currently need the internet). There are no competitors and every user must have a bank account. We all have no option but to use this system. Lack of competition has allowed it to become antiquated, with very little innovation to improve its overall functionality. It is expensive to keep it going, and without genuine competition, price gouging is suspected on the fees charged to users for just about every aspect of its use.
The fiat system is also filled with friction. For example, it’s slow and very expensive to perform international remittances. There are fees to convert the currency and then more fees to send that currency on. It can take anything from 3-5 business days to receive an international payment. Payment-associated transactions like credit cards and PayPal also attract expensive fees.
A state change is upon us: The blockchain currency has arisen with the ubiquitous penetration of the internet and its ownerless yet persistent state (always on). The internet has grown and emerged as the predominant superhighway to transfer all types of digital information. Physical postal-service mail was the first major industry that was disrupted by this new superhighway due to the invention of email. Today, most legacy infrastructure that supports telephony, radio, movies and television has been disrupted to some degree. These industries are shifting ever larger parts of their data transmission over to the internet because an ever-growing number of their users are using the internet as the preferred portal to access their digital data requirements. Private siloed and permissioned legacy infrastructures are in rapid decline. With the invention of the blockchain, transfer-of-value directly over the internet is now possible. The banking industry’s siloed fiat system is perhaps the last and most important private legacy infrastructure to be disrupted by the internet.
With the blockchain, being willing to incur a “cross-border payment” while suffering up to a 5-day wait becomes as unthinkable as sending a “cross-border email” that is expected to take 5 days to arrive.
Blockchain currency conversions are relatively frictionless and virtually instantaneous (less than 1 hour in most cases), and transactions fees (if any) are also considerably lower. Paying an expensive fee to send your blockchain payment locally or internationally makes about as much sense as paying a fee to your internet provider to send an email locally or internationally.
The internet has thoroughly penetrated the fabric of modern society for all things digital, one of the most notable being ecommerce. From around 1995 the demand from users to participate in commerce via the internet grew exponentially, and this in turned forced the banking industry to bring their private siloed system closer to the new superhighway in an effort to meet its users’ ever-growing demands for digital convenience via the internet. This has now expanded to include online banking and payment systems (Visa/MasterCard). However, it is important to note the fiat banking system plugs into or sits on top of the internet. It is still separate and is unable to integrate in a safe and secure way with the internet the way a blockchain currency does.
So today the fiat system has a competitor that has the potential to genuinely disrupt its singular monopoly. Blockchain technology has become a game-changer. We are no longer forced to use only government/banker-issued fiat currency to store value; nor are we forced to use the banking system to transfer it. We can now store our value in a public decentralised currency (a blockchain currency) and use a public decentralised system (the internet) to transfer it to others.
The current state of blockchain currencies: Cryptographic blockchain currencies are at a very nascent stage. They are not a separate technology to the internet, but rather a major enhancement or upgrade to the internet’s ongoing evolution. Cryptographic blockchain currencies therefore inherit the genetic or core fundamentals of the internet right down to the protocol level. Arguably, the most important of these attributes is the decentralised state of the internet. The internet is the rails that a blockchain currency is transferred around on. It is not owned by the banks or controlled by a government. This means high fees are unlikely to be ever charged since a “level playing field” or a “neutral worldwide rails system” is now in place. This is a similar state of affairs to when Skype was created. International phone calls through Skype suddenly became very cheap or free. As a direct result, toll call charges from incumbent Telcos plummeted all around the world. The Telcos’ siloed telephone system faced extinction. They had to lower prices to compete with services being offered by the likes of Skype to stay in business. And it was the ownerless state of the internet as the underlying rail system that brought this about.
There are only permissionless (non-government/bank) blockchain currencies in existence today. The first permissionless blockchain currency was Bitcoin, created in 2009. It was a technological experiment that has been highly successful and has proved that currency movements over the internet can be safely and securely performed without a banking system. It comes with a fixed money supply of 21 million coins, and it’s the resultant scarcity this creates that makes it extremely valuable. One bitcoin at time of writing is worth around $1300 USD. No government, dictatorship or banking institution was involved in its creation or deployment. Its value is autonomous and is derived solely from what its users believe it is worth. There are now over 500 permissionless blockchain currencies available today.
Permissionless currencies are only one (and the first) product that a blockchain can be used for. They can also be used in other new and innovative ways not possible with fiat. Micro payments, escrow, and multi-signature transactions are some examples where blockchain currencies are far superior. In addition, there are other functionalities not specific to finance that are possible using blockchains and which are much more secure and unforgeable, such as proof of identity (like a passport), ownership transference (like vehicles and homes), and democratic voting systems. Hundreds of non-currency blockchain products are being worked on now and many thousands more are likely in the future. However these developments are outside the scope of this paper.
Why a government should support this technological innovation: Blockchain products and new economic communities are under development. They can be accessed or used only via a blockchain cryptographic currency. Currently there is no permissioned or government-created one. Electronic fiat is unusable within these environments because its architecture is not cryptographic. It must be converted to a currency that is cryptographic before its intrinsic value can be utilised. On this basis alone, a risk for government is the economic exclusion of fiat in these new economies. Users will be forced to sidestep the fiat system for no other reason than these new economies can only function or be used with a currency that has cryptography built into its design i.e. a blockchain currency. To ensure a country’s national currency remains relevant to these emerging new economies, its currency must be made available in a blockchain format.
In the near future, it is this author’s view that most countries will need to convert at least part of their fiat currency over to a blockchain architecture. This means two different architectures for the same currency for example, NZ dollar fiat and NZ dollar blockchain. It is simply a matter of when a government recognises that electronic value-transference will be moved (in part or wholly) to the internet, thus breaking away from the current banking industry’s siloed fiat system. It also means the beginnings of the disintermediation of banks since blockchain currencies do not require them. A tough reality that the banking institutions are currently grappling with.
Bitcoin has proven that creating or digitising a currency (or digitising a value asset) to store value is no longer the privileged purview of banking consortiums or even governments. Permissioned systems based on fiat is not the future. Total domination of currency creation and value transference by the banking industry and governments is ending.
Why this technological innovation will grow with or without government sanction: Once the blockchain becomes the accepted standardised architecture for currencies, some governments and banks will be unable to surreptitiously devalue their currency without serious repercussions from its users because those users can easily abandon it as a store of value. This in effect is what we have now, albeit nascent. Citizens who live in economies like Brazil, India and Greece are now storing a growing percentage of their savings in non-government-created cryptographic currencies in the knowledge that it’s secure (it cannot be arbitrarily confiscated and access cannot be shut down), it will maintain its value much better than the official fiat currency, 24-hour access is guaranteed via their mobile phones, and it can be moved to any location in the world that has internet access. Their wealth will easily follow them wherever they go. Being a refugee will no longer necessarily mean you have no access to your savings irrespective of the country that takes them in.
Blockchain currencies will enable users to exchange and hold their savings in many different currencies (permissioned or permissionless) with very little friction. Sending and simultaneously switching one type of currency to another will be as seamless as sending an email from an Apple Mac, Android phone, Windows PC etc. to any other device anywhere in the world.
This new technology – as was the case for the internet in the early days – will be largely ignored by everyone until suddenly we all find ourselves using and relying on it in our daily lives.
The architecture of a solution: In the future, it is likely that a mix of fiat and blockchain currencies will coexist for a time. Governments and the banking industry will create and control the official fiat and the official permissioned blockchain national currency, while permissionless blockchain currencies (or currency-like tokens) will be created by various members of the public (worldwide) to achieve or enhance their specific economic goals.
There are blockchain solutions suitable for permissioned government-issued cryptographic currencies. These solutions will enable governments to safely move or exchange at least some portion of their fiat currency over to a blockchain architecture to enable its constituents to use blockchain products and participate in blockchain economies which would be impossible with fiat currencies. A government can issue a regulated permissioned currency with all of the architectural advantages of a cryptographic blockchain. There is no requirement for it to be decentralised as is the state with a permissionless blockchain currency. Deciding what features and safeguards a permissioned cryptographic currency should have embedded into its protocol is the more relevant question.
Several first-world central banks have been experimenting with a form of blockchain currency using distributed ledger technology (DLT) for example Canada, Britain and Japan. However they have restricted that usage largely to streamlining interbank financial activities. As important as this is, there should also be a focus to cater directly to end users who want to actively engage in localised economic blockchain activity within the real economy (non-financial). Governments should lead the way and be the conduit to lay down the initial infrastructure for their citizens.
This proposal focuses on first-step distribution being offered directly to the public. The distribution, in all probability, will be taken up via “software developers”, who will require a cryptographic currency to deliver cryptographic blockchain solutions. Such solutions would promise better efficiency within current business models which rely on a high degree of human intervention (for example international money transmittance). These solutions will also drive out friction in antiquated legacy systems and create new forms of value transference not yet thought of. This would enable a meaningful assessment of real-world demand and also allow innovation to be driven directly by the needs of users. Currently, software developers are forced to use permissionless cryptographic tokens/currencies to deliver these products. There would be no need for this if a permissioned government blockchain currency was available.
Any cursory investigation by world governments will confirm the burgeoning wall-to-wall projects underway in this sector. Literally billions of dollars are being invested into this ecosystem. None of these dollars are going into a government-permissioned cryptographic currency. A controlled and measurable pathway is required to apply a blockchain architecture to the national currency. It needs to be done with the buy-in of key stakeholders namely, the government, the banking industry and individual citizens.
This paper provides a starting point as a way forward for the adoption of a cryptographic currency as the correct or better mode of transport to transfer value.
Simply put, an orderly and safe process is needed to introduce a government-issued and controlled cryptographic currency. It would operate in parallel with the fiat system. The key is to implement it with demonstrable incentives to accommodate the key stakeholders. The process would also need to demonstrate low or negligible instability risk to the current financial system.
Specifically a modified CAB (centralised autonomous blockchain) would be created.
The proposal: For the purposes of this proposal I would suggest a country like New Zealand (of which I am a national) would be good candidate. It is a small, first-world economy with a sound and relatively open financial system and would be well suited for such an experiment.
The government, in effect, owns one bank called KiwiBank. In partnership with this central bank the foundation for this proposal is already in place.
The central bank of New Zealand could create a limited quantity of cryptographic currency that would be available for use in parallel with the national fiat currency. Kiwibank would control the initial release of this new currency into the system. This would insure KYC (know your customer) legal requirements and AML (anti money laundering) regulations are met. Kiwibank would in effect provide the on/off ramp into and out of the NZ cryptographic dollar from the NZ fiat dollar.
Since there is no physical note or coin for the new cryptographic currency, converting fiat to cryptographic would be digital only via Kiwibank customers. Customers of Kiwibank would convert monies from their digital fiat bank account and transfer it to a smart-phone digital wallet, using an APP (via Google’s ‘Play Store’). An internal ledger would be created and maintained by Kiwibank for auditing purposes. The government would then know with whom and when the coins were converted.
A Federated Server (or servers) owned and controlled by key stakeholders would be responsible for running the blockchain ledger. The coin would be a New Zealand digital cryptographic dollar (NZCD) and would carry the same value and rights as a New Zealand digital fiat dollar (NZD), backed by the full faith and credit of the New Zealand government).
The initial users who convert their fiat to cryptographic would most probably be software code developers who want to create new blockchain applications for blockchain economies that are accessible only with a cryptographic currency. They would convert their current digital fiat dollars for digital cryptographic dollars. When a new-use application, solution or asset is created, the wider community would then need to convert their fiat dollars for cryptographic dollars to use the new application and participate in the new economy created.
Security and Control: Strong controls can be built into a government-permissioned blockchain currency, together with highly transparent visibility. Regulatory compliance rules could be built in if required, for example: • Freezing the contents of any funds held in any wallet due to criminal activity. • Automated deduction of any funds held in any wallet i.e. outstanding fines (currently forced on employers to collect). • Automatic freezing or confiscation of any funds used on any blacklisted markets. • Automatic recall of funds transferred or used outside a specific geographical location (national or international). In effect, highly advanced controls can be programmed into a cryptographic blockchain currency that is not possible within a fiat system. Cryptographic currencies offer control and flexibility well beyond what a fiat currency is capable of. Lawful activity can be programmed in and unlawful activity can be programmed out.
How? (Basic technical overview): In essence two cryptographic currency tokens would be created. Firstly, a rights token (RST) and secondly a cryptographic currency i.e. a New Zealand cryptographic dollar (NZCD). Both tokens would be created via central-bank/government and would have a symbiotic relationship with each other. The rights token would be tradable, that is to say it would be tradable for legal tender (NZCD) but in itself it would not be legal tender. It would be similar to a share certificate of a company in this respect.
The rights token would receive a dividend from the usage of NZCD. A transaction fee would be deducted and held in escrow each time NZCD was transferred from one entity’s wallet to another to purchase goods and services. This function would be programmed into the blockchain currency and would be automated. For example, the fee could be say 0.1% per transaction (or something set well below any current fiat system fee). Every quarter, transaction fees would be autonomously distributed to all RST token holders on a pro-rata basis at set intervals based on the number of RSTs they own.
RST token: The purpose of an RST is to incentivise and enable key stakeholder participation. It is a new form of ROI (return on investment) for the banking industry. All key stakeholders would benefit from ownership of RSTs. RST ownership could be made transferable or tradeable to qualifying entities or persons and be made divisible to say 8 decimal placings. The 8 decimal placings (the unofficial standard for cryptocurrencies) provides significant depth for a coin to expand its fungibility and allows the token to be highly divisible. Continual price-discovery through market forces would price the token’s actual market value. The initial distribution of RSTs would or could be distributed via a crowd sale to key stakeholders i.e. the banking industry, governments, individuals or other entities.
A very basic example of how this could be implemented is as follows: An initial 10 million RST could be created with a portion then held for auction or for sale. A simple split of the tokens could be: • 2 million held for government or used as incentives for other entities like developers and maintainers of the system. • 4 million held and distributed to all KiwiSaver participants or held in escrow for every Kiwi citizen (KiwiSaver). • 4 million set aside for auction or sale to banks and private New Zealand investors, either all at once or in tranches over time.
NZCD dollar: As little as $1,000,000 dollars could initially be issued. With the above-mentioned built-in safeguards, this level of seed-cryptographic currency would have a negligible impact on the economy. It would allow New Zealand program developers immediate access to start building out new products and economies. As and when demand rose, further NZCDs could be issued.
Incentive for the government: There are a number of incentives for a government to move into this space sooner rather than later. Investment opportunities, economic growth and first-mover advantage are some of them.
In 2015 a record 1 billion dollars’ worth of venture capital was invested into this space, up from 347 million in 2014. Estimates for 2016 are forecast at 5-10 billion dollars. There is more investment being channelled into this space than during the comparative early days of the internet. All of it is virtually walled out by the fiat system. Currently, the only way in or out is via unregulated international private cryptographic coin exchanges. This comes with a high level of friction and risk, which in effect has reduced the cross-border investment primarily to early VC adopters.
Governments would have two clear advantages over other institutions when introducing their own cryptographic currency. The first is legitimacy and the second is immediate stability in line with the national fiat currency. Most permissionless currencies do not have these advantages.
In any event, cryptographic currencies are here to stay. It would be much better for a government, looking forward, to introduce their own cryptographic national currency. This would allow software developers to build out or imbed new emerging cryptographic economies with the nation’s own cryptographic currency.
Key Terms: Rights Token (RST): RSTs reward the owner with transaction fees collected on the system. A reward-based return for any transactional volume will be generated through the use of NZCD Tokens. RST Token ownership would be made transferable or tradeable to qualifying entities or persons and could be divisible to 8 decimal placings.
New Zealand Cryptographic Token (NZCD): An NZCD token represents 1 New Zealand dollar. NZCDs are kept in digital wallets. A set amount would initially be created and grown over time. They have a symbiotic relationship to the RST tokens.
Federated Server (closed system): Servers that run and secure the blockchain. Owned and run by a combination of key stakeholders, banks, a central bank and the government.
ICO: Initial coin offering. A fundraising option to purchase RST tokens.
Crowd sale: Another fundraising option. A crowd sale is used to allow stakeholders to purchase RSTs. Proceeds would be used to fund the system, incentivise stakeholders and attract appropriate developers.
Price per RST: Example: if the crowd sale concludes with a total value of NZ$1,000,000,000 raised, the tokens will be valued at $1,000,000,000/10,000,000 = NZ$100.00 per 1.00000000 RST. 1 RST rewards the holder with transaction fees from NZ cryptographic dollar tokens (NZCDs) on the blockchain at 1 / 10,000,000 of all transaction fees every quarter. As an example transaction fees of NZCD could be set at say 0.1%.
Scenario 1: NZ$1,000 transaction volume per day: The transaction fees collected would be $1,000 * 365 days = 365,000 / 10,000,000 RST tokens. So annual fees collected would be $365 NZCD and distributed pro rata at 0.00003650 cents per 1.00000000 RST held.
Scenario 2: NZ$10,000,000 transaction volume per day: The transaction fees collected would be $10,000,000 * 365 days = 3,650,000,000 / 10,000,000 RST tokens. So annual fees collected would be $3,650,000 NZCD and distributed pro rata at 0.365 cents per 1.00000000 RST held.
Scenario 3: NZ$100,000,000 transaction volume per day: The transaction fees collected would be $100,000,000 * 365 days = 365,000 / 10,000,000 RST tokens. So annual fees collected would be $36,500,000 NZCD and distributed pro rata at $3.65 per 1.00000000 RST held.
About the author: Monty Kirkman is an artist and small business owner. He currently runs a small manufacturing business producing glass art giftware in Whangarei New Zealand www.maoriboy.com
As a keen technologist, in 2013 he discovered the underlying technology called ‘the blockchain’. He became fascinated by the very real disruption this technology will bring to all forms of industry.
One of his aims is to raise awareness to the small business community to prepare themselves for this emerging technology.
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Bitcoin Q&A: Is Bitcoin a democracy? Liberty Lobby - Week 3 - Exempting Virtual Currency Users from Money Transmitter Regulations Why U.S Restrictions on ICOs and Exchanges Is Likely Everything You Need To Know About Money Transmitter Licensing HOW TO BUY BITCOIN WITH CASH IN 10 MINUTES!!

The Pennsylvania Department of Banking and Securities (DoBS) says cryptocurrency exchanges in the state do not require Money Transmission Business Licenses. MTA Not Applicable to Bitcoin in Pennsylvania In a memo titled “Money Transmitter Act Guidance for Virtual Currency Businesses,” the Pennsylvania DoBS clarified that the Money Transmitter Act (MTA) did not apply to cryptocurrency ... Exchange Reviews; Wallet Reviews; money transmitter Auto Added by WPeMatico. Home » money transmitter. Feb 24 2020. US Develops Cryptocurrency Intelligence Program Targeting P2P Sites, Forums, Darknet Markets – Bitcoin News. anti-money laundering, Bitcoin, btc, ... To answer your question the Money Transmitter Regulatory Association and State regulations should be your guide. Different types of transactions fall under MSB rules/regs. In general there are likely going to be around 45 states that will require some type of regulatory oversight and licensing. Some will only care if the transaction means funds will be held in a balance or stored value account ... Bitcoin “Exchanger” without Money Transmitter License Indicted on 28 Counts of Money Laundering. California native Jacob Burrell-Campos, 21 years old, has been arrested at the U.S-Mexico border for dealing on bitcoin without a money transmitter license. As of September 5, 2018, the Money Services Business Association, Inc. (MSBA) has integrated into its operation the services and capabilities of the National Money Transmitters Association (NMTA). With the consolidation of the two entities, the MSBA is the only broad-based trade association focused on tracking state and federal legislation and regulation for the money service business industry ...

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Bitcoin Q&A: Is Bitcoin a democracy?

https://coincompass.com your bitcoin guides. It's estimated 5 million bitcoins have been lost or stolen: learn how to buy, store and control your bitcoins (private keys) securely. CoinCompass is ... Most US states require exchanges to have a money transmitter license, which is regulated. Therefore there are many regulated bitcoin exchanges operating in the US already such as CampBX, Kraken ... This week on Around the Coin, Faisal Khan, Brian Roemmele, and Mike Townsend discuss everything about money transmitter licenses, including how they work, who needs one, and how bitcoin plays a role. Wyoming's State division of banking recently passed "The Wyoming Money Transmitter Act" requiring a special license for companies offering hosted bitcoin wallet services to maintain %25 of its ... HB 436 would carve out an exemption for bitcoin and other virtual currency users from the money transmitter regulations, but there are some problems. Here's the full hearing video.

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