Category: Bitcoin

Kava, the multi-asset decentralized finance platform or DeFi that offers stablecoins, loans, and other financial products for users of cryptocurrency assets including BTC, ATOM, BNB, etc. has released a proposal for the first cross-chain money market on their Cosmos SDK built Blockchain to capitalize on DeFi possibilities on their website.

Kava, in their statement, said that it wants to build an application called Harvest that will allow users to lend or borrow digital assets, including BTC, CRP, BNB, BUSD, KAVA, and USDX. Investors will be paid interest in the form of Harvest’s governance token, HARD. Version 1 of the software will provide supply functionality, and version 2 of the software will provide borrow functionality along with extended governance.

The Harvest Decentralized Finance lending Cross-Chain Architecture.

Harvest is one of the many applications that will leverage Kava’s blockchain security for DeFi products. With the application primarily deriving its basics from KAVA, it will automatically combine other functions like Kava’s price reference data from Chainlink oracles and the bridges to help in cross-chain asset transfers.

Kava, in their statement, said that the cross-chain architecture would play a crucial role in giving Harvest access to any digital assets within the Kava blockchain network. The company website also stated that the project is set to capitalize on the Kava-4 Mainnet upgrade, where an expansion of the BEP3 Bridge will allow the support of BTC, BUSD, and XRP amongst other digital assets. In the long run, all these assets will be supported in the Harvest cross-chain money market along with Kava native assets like USDX, KAVA, and HARD.

The new application Harvest is a decentralized platform that can be accessed by anyone from anywhere. The open end application will help in integrating financial market stakeholders not limited to the financial applications, exchanges, and financial institutions. This would thus help the financial service providers to offer Harvest Borrowing and earning facilities directly to their clients.

Kava CEO and co-founder Brian Kerr, in a statement, said that it was important that the company offered a governance token. Their governance token, HARD, will harmonize decentralized activities within the lending and borrowing ecosystem. 

Harvest users having HARD will also be able to access reward distribution within the network and have the option to choose which digital asset to feature. Harvest will also distribute 20 percent of the total amount of HARD tokens to Kava stakeholders over the coming years for providing security and other base layer services to the Harvest platform.

Brian Kerr added that his foundation provided developers with the ability to quickly build applications on Kava’s open platform while being able to support its security, cross-chain bridges, and other infrastructure, which would otherwise cost a fortune and years to develop independently.

The security lacks in the world of virtual currency have once again raised the eyebrows of users of such currencies. One more such incident has come in the limelight where the data of Google Gift card is used maliciously, and the undue advantage is received by a group of employees of a firm in the Philippines. It was recently reported that some employees of Sykes were involved in a Bitcoin scam. Reacting to the news, Google has pulled outsourced work from the Philippines based Sykes, which is involved in BPO operations.

Google has confirmed the news and said that it has pulled some projects which were outsourced to Sykes and given it to another vendor in the Philippines. According to various social media posts, some employees of such outsourcing firms allegedly siphoned around $1.23 million worth Google gift cards, and it was later converted to Bitcoins.

Even though Sykes confirmed that some of their employees had breached the conduct standards, it was not revealed as to what the nature of the violations was and whether it was related to the Google project.

The rise in Crypto Scams

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In recent years, there is a significant rise in crypto scams, and fraudsters find it easy to use such options as they can easily evade law enforcement in many cases. The National Cyber Security Center of the UK had recently cracked a fake celebrity endorsement deal for Bitcoin online.

Not only that, in many countries, scammers have been using high-end technology to lure vulnerable investors into fraudulent Bitcoin investment schemes. They promise high returns and project their company as legal and based in some foreign location. As they are not locally registered, not much information will be available about such companies, and users also do not cross-check all the details when they are blinded with high returns schemes.

In many cases, investors have lost lots of money, and they are in no position to complain against the scammers as they are in a different country. Even the local authorities cannot help in such cases as they need the help of international agencies to track such cyber crimes.

For such reasons, many countries have imposed stricter restrictions on cryptocurrencies, which is done to protect the common investors from such scams. However, the Philippines is friendly towards the cryptocurrency industry, and it is even planning to issue a central bank digital currency shortly.

The financial pundit George Ball has changed his tune regarding Bitcoin. The head of a reputed business firm had previously been unwilling to see the cryptocurrency as a viable player in the economy and something to be reckoned with. But with recent approving moves by the federal authorities and growing correlation of Bitcoin with traditional forms of financial resources, the man seems to have seen Crypto’s glory. The pandemic has put things into perspective, and the lacking capabilities of traditional government-run economic elements have made it clear that they cannot be depended upon in trying times. On the other hand, altcoins seem to be thriving in these uncertain times and have sufficiently corroborated their risky nature of operations.

Turning Viewpoints:

Ball explained his shifting loyalties with the growing concern of the market further weakening because of the governments’ generous distributions of stimulus packets. The subsidiaries may be necessary for people right now, but the solution is a short stilt that will further dishevel the already weakening economic stick house. These preliminary measures will come back as huge tidal wave destruction to many modes of transactions accept cryptocurrencies.

Renewed Faith on The old reliable:

The finance head reiterated the common benefits of Bitcoin in a newer post-pandemic light. He emulated the safety of cryptocurrencies and how they can act as long-standing repository wealth unaffected by the shifting winds of finance or the devastating effects of natural calamities. He also praised Bitcoin’s trading capabilities and how it provides high returns during critical points in time. He assured that brighter days lay ahead as many traders will turn towards altcoins in huge numbers as government-regulated fiat currencies will quickly lose ground once the after-effects of all those public subsidiaries roll in. Thus the most fundamental feature of Bitcoin, that is, autonomy from authoritative control, will be a major attractive quality for new users.

The ball is not the only previously unmoved trader that has changed his opinions with changes the economy is facing today. Many other industry honchos who had limitedly accepted Bitcoin’s ingenuity are now embracing with wide arms and hopeful eyes. The stability of the altcoin due to its independence from government regulation, increasing valuations, rapid and explosive returns along with a Bull Run forecast up ahead has greatly increased the appeal of all forms of cryptocurrency for the previously skeptical. 

In the past some years, the use of virtual currency has been increased, but yet people do not take it as money. However, a decision provided by the court of law in the USA, there is no doubt that money is not different than the bitcoin. In a surprising outcome, the D.C Federal court has said that Bitcoin is a form of money. Hearing the case of United States v Harmon, Howell, the Chief Judge mentioned that Bitcoin is a form of money as generally money is a medium of payment and exchange and anything that can store value. Bitcoin meets all these requirements, and hence it can be considered as money. This verdict has created sensation in finance world and also opened the new directions for the virtual currency.

Bitcoin covered under Money Transmitters Act

As per the new ruling, Bitcoin is now considered a form of money, according to the Washington D.C Money Transmitters Act. The money laundering case against Larry Harmon, who operated an unlicensed bitcoin trading platform, was heard by the court, and it declared bitcoin as money so that criminal charges against the accused could not be dismissed.

What experts say in this matter?

While the court’s decision has cheered many market participants in the cryptocurrency market, things still remain the same as per market experts. The decision of the court, which agreed that bitcoin is a form of money, is meant in that particular context of money transmission licensing in D.C. Apart from that, it does not provide any validity for the cryptocurrency in other forms of the financial markets.

Investors should not get too excited about this decision, and it should be taken with a pinch of salt as it does not provide legal sanctity to cryptocurrencies. Many investors are shying away from such investments as they are afraid of regulatory sanctions against cryptocurrencies. In some countries, such cryptocurrency exchanges have been banned without considering the fate of investors. In this situation, investors should always exercise caution while dealing with cryptocurrencies.

In most cases, even though you might be dealing with a stable cryptocurrency like Bitcoin, you should also be careful about the exchange offered by the trading services in this virtual currencies. If the exchange is not having regulatory permissions from the local government, it may get into trouble at a later stage, and you will face problems with your investment. Investors should consider all these factors while investing in cryptocurrencies.

The CEO and Founder of Cypherium blockchain, Sky Guo, recently said that he believes the central bank digital currency (CBDC) based international payments would start happening in the coming years or maybe even sooner. Sky also said that the development happening of CBDC in the central banks of many countries would make way for many countries in the European Union as well as the United States and China are leading in the international payments across borderlines. At the rate in which the developments are taking place in this field and the interest of the banks to make CBDC a reality is what gives hope that the cross-border payments would soon become a common mode of making payments in the near future. 

There are many countries across the globe that is domestically experimenting with the CBDC by launching pilot projects. One such example is Didi, a ride-sharing company that has partnered with the respected Digital Currency Research Institute of China. It is what makes the cross-border payment through CBDC in the future inevitable, said Sky Guo. However, he did mention that there is one hurdle in the process that is the different technology and regulatory parameters used by different countries with respect to CBDC. Sky Guo said that the central banks of different countries should work together to solve the interoperability features, which can otherwise cause a range of issues. Unless these interoperability issues are resolved, the CBDCs of different countries wouldn’t be able to interact and adapt to different systems and technology, making the global adoption or cross-border payments almost impossible. 

Sky Guo said that there are two categories of CBDCs, namely retail CBDCs and wholesale CBDCs. The retail CBDCs are primarily used for daily purchases by retail investors, whereas the wholesale CBDCs can be used for bigger transactions, mainly by the banks and similar financial institutions. Coming with the solution, Sky Guo said that Cypherium blockchain, made by combining HotStuff combination and Proof-of-Work or PoW algorithms, provides a solution that enables cross-chain interoperability for Central Bank Digital Currency. 

Sky Guo is among the most noted figures in the crypto world and is also part of the OMFIF Digital Monetary Institute. He has been part of the many virtual roundtables and conferences with the People’s Republic of China, De Nederlandsche Bank, Digital Currency Research Institute, Banque De France, and European Central Bank, along with many others leading names in the crypto and financial world. Sky Guo believes that banking and financial institutions have to work together to bridge the gap between the traditional banking system and digital currencies. It is, for this reason, the global mind behind the central banking system, OMFIF has launched the Digital Money Institute. 

The main purpose of the Digital Money Institute is to engage in market research and study the issues and problems that the digital currencies are facing globally, and make its adoption easier, not only by the retail investors but by institutional investors and financial organizations. 

While the concept of blockchain and peer-to-peer network in crypto-currency may have revolutionized the technological world, there are certain blocks in the path of its true development. For years innovators of crypto-currency have stuck to their specific doctrines as well as the technologies that operate through them despite many of the problems involved.

For the blockchain algorithm to flourish in the virtual world unhindered, users must be able to exploit every platform providing the cryptocurrency service without having to be stuck with one because of petty disagreements between the developers.

Basic Vitality

The main vitality of inoperability in blockchain lays in the plethora of opportunities it will present. It will be able to further progress from crypto-currency development to other forms of ownership, especially that of data which is as valuable as gold in this fast-changing world. The ongoing coronavirus pandemic has placed a mirror to the various problems associated with supply and demand as well as how important it is to cooperate during a crisis. The blockchain holds its essence in its ability to let the unanimity of the whole group hold cognizance as well as to maintain transparency and easy application. These solutions can be applied to many commercialization processes that a growing economy desperately needs.

The big obstacle

So what is stopping us from using blockchain in a more global way? The lack of inoperability is the bigraison d’etre. The lack of inoperability forces the user to be stuck in the blockchain that he’s using and doesn’t allow her to communicate or affect another blockchain simultaneously. Along with that, the process of choosing the correct option to develop of a blockchain becomes extremely over-complicated since the correct choice differs from blockchain to blockchain.

The much-needed solution

Inoperability requires the platform-innovator to be a little large-hearted and allow the developer who didn’t opt for their particular platform to progress regardless. The developers must be encouraged to help each other out and opt for a universal code of operation that will bring uniformity to an overly complicated process that need not be so.

The secret lies in the intrinsic need of humanity to help each other out. Instead of focusing on gathering the most number of transaction and become the biggest chain on the block, true progress can be achieved by cooperation.

With advanced technology, the graph of users of cryptocurrencies is also going upward. Many countries have recently given a green signal to use virtual currency. Japan is one of the leading nations in this where it has decided to have some better platforms for virtual currency. One of the biggest exchanges for cryptocurrencies in Japan, Huobi, is all set to introduce 6 new tokens into the market. It has asked the users to cast their vote in this regard about choosing which tokens they would like to see listed in the exchange. The exchange has mentioned the details in the official portal, and it is in the process to include 6 new tokens among IOS token IOST, Enjin ENJ, NEO, Tezos XTZ, Ontology ONT, and QTUM. As per the official circular, users will start voting, and the process will be completed before the 16th of August 2020.

Process of voting

The voting has begun since 16th of July 2020 and users will be allowed to cast per account 1 vote they have with Huobi. The account holders can vote every Friday, and maximum five votes will be allowed per account. The voting process will end on the 16th of August 2020. The token that gets the highest number of votes will be considered for listing in the Huobi exchange. However, there is no guarantee about that, and they are just considering public opinion before adding suitable tokens into the exchange.

Popular tokens that are likely to get listed

Among all the tokens that are in the race, three of them from China are having a good chance of getting listed in the Huobi exchange. The IOST platform, NEO and ONT are the top tokens that are likely to be listed according to sources. The IOST is similar to Ethereum blockchain, and the token is based on the Internet of Services which can be used for smart contracts. NEO, on the other hand, that is in the business of developing digital IDs and smart contracts. ONT is in the business of providing blockchain solutions to companies.

Currently, Huobi is offering 7 cryptocurrencies for trading including BTC, Ethereum, Ripple, BCH, Monacoin, and Litecoin. Considering the growing demand for cryptocurrencies across the world, many tokens may get added in the near future. This will also help traders to diversify their investments, and they can participate in several cryptocurrency rallies at a time with such options.

A new crypto-coin backed by two leading crypto-giants has started to make waves in Latin America after six months of its launch. With a market already welcome to various crypto-currencies, the new altcoin has taken advantage of this warm-welcome and has been adopted by millions of customers. After its inception in 2014, it has become Mexico’s leading and primary block-chain based currency and has gathered considerable momentum since its launch. The widespread reach of the altcoin was recently discussed by a panel of experts including the backers of the said currency.

Rapid Success

The path-breaking advancements and swift success of the currency are partly supported by the local market’s increasing need for such secure, virtual, and block-chain based currencies that are easily operated through remote connections. A large pool of freelance users is also a big chunk of the crypto-currency customer group that has taken part in the new altcoin’s fantastic success. The ease of handling through one’s smartphone instead of the confusing and meandering processes of the bank is also an instrumental factor. People seem to favor a form of currency accessible easily through the mobiles they can operate in the comforts of their home.

Record-Breaking Performance

This amazing expansion of a relatively new crypto-currency comes at a time when crypto-currency transactions and investments are at an all-time high in the local market. With a recently executed trade that was conceptualized in the figures of millions of dollars, the market has witnessed a record in crypto-currency dealings and trades. The owners of this novel altcoin are rapidly gathering immense success as they make further ambitious plans to expand their base from the local market to international ones. With more investments coming their way, Bitso is riding a wave of continual success and an all-time high.

Reasons behind success

One of the basic reasons for such rapid development can be attributed to the main benefits if dealing with crypto-currency. These may include their high safety measures and transparent recordings. Pioneered by the innovative technology of block-chain development, crypto-currencies are extremely hard to be siphoned off by a third-party hacker. Further, the system of the peer-to-peer network also helps to maintain the transparency that further prevents any chances of trouble. Crypto-currency has also been gathering momentum with many reputed and trusted investors backing their introduction into the mainstream market.

Other reasons behind such an electric introduction of a new altcoin may also be because of the ease of use associated with crypto-currency. All you need to start transactions and investments involved in altcoins is to get online and get yourself an e-wallet. After that, the user is free to accept- send and investment in the virtual currency any way they like without the worry of outside hackers swooping in to steal all of their hard-earned money. But one has to be careful in keeping their private keys private since hackers may try to find this key in order to gain access to your wallet. It is advised to keep it safe in an offline encrypted device or even on printed paper to ward off hackers.

Crypto-currency is making large and considerable waves all across the world as is evident by such a scale of success for a relatively new crypto-currency introduced to the market. With investments still going strong, and millions of users adopting crypto-currencies every minute, the future of this virtual wealth looks bright. The financial landscape is no more the slow-paced elephant of the times of our elders; it is now a dynamic and fast-changing space of constant movement that is improved by the presence of crypto-exchange.

Bitcoin has grown massively in the last decade since its inception from a small community basing its values on cypherpunk to become a concern for national security with strong implications on geopolitics. Melterm Demirors, CSO of Coinshares and Andy Bromberg, Coinlist’s President, spoke as a part of the Unitize Panel named “From Bitcoin to Fedcoin: The Next Decade of Digital Money.” However, very little was spoken about Fedcoin or the Central Bank’s currencies at the event by the invited dignitaries. Instead, the entire focus of the conversation was tilted towards how Bitcoin is going to play a pivotal role in the coming time, especially its implications in geopolitical landscape and competition in the space of technology. 

Demirors said that in recent years, there had been a major shift in power dynamics. It is more dependent now on computing technology and fast connectivity, which plays a major role in national defense and cybersecurity. While giving examples of the changing dynamics, Demirors gave an example of how Amazon Web Services went on to become the biggest defense contractor in the country while Huawei was allegedly charged with threatening national security through its technology and consumer outreach. Meltem Demirors believes that as the United States has allowed foreign governments to participate in the infrastructure building contracts, the move by Huawei may be politically motivated. 

Recently, semiconductor firms like TSMC and Intel have been planning to take back the production of their hardware to their respective native countries. Demirors believes it is a possibility with Bitcoin mining as well in the future. She speculated that it is possible in the next few years; more than 40 percent of Bitcoin mining takes place in the United States itself. The government, in the future, may look at the cryptocurrency networks as a part of the national security apparatus. 

 While talking about government-issued digital currencies and Stablecoins, Demirors said that they could not be classified in the same category as Bitcoin. Currently, the idea of digital currencies is being adopted by many people and is being used in different ways. It is mainly because the space of digital assets and currencies is evolving and yet to fully mature. However, Demirors did say that Central Bank digital currencies have no connection or similarities to Bitcoin whatsoever. 

Both Demirors and Bromberg reiterated the fact that using the phrase “blockchain-based” is misleading, partly because of the infiltration of propaganda in the industry. However, they both agreed at the event that the Central Bank’s digital currencies are a much better option over the current digital fiat infrastructure. She noted that whether it is Bitcoin, Stablecoin, digital bank currencies, or any other projects, they all are trying to solve a problem that we are currently facing. 

Meltem said that the biggest problem that Bitcoin solves is that of choosing which monetary system to go with. Many people who do not agree with the existing monetary infrastructure have little to no choice to fight back. Digital currencies that are backed by dollars do not solve the issues of privacy, censorship, and financial control. Bitcoin is the dominant force to reckon within the space of digital assets and currencies and is on the way to becoming the resistance money. So, in the end, it can be paradoxically said that Bitcoin plays a role in national security, while also giving an option to escape it. 

Among the users who love to use the latest options in the field of technology, the blockchain is known as the latest option. For the new users, it may be something new, and they may not be aware of its usage, but those who are in this field know the use of this technology in various fields and understand its importance as well. Many blockchain enthusiasts feel that it is high time that service providers have interoperable blockchains in the market. While this seems like a feasible option in the near term, it has many challenges. To begin with, current issues include loss of important data and loss of funds during international transactions. All of these have to be covered up with new patches that uniformly work on all crypto platforms. Apart from that, the entire lots of cryptocurrencies have to maintain some sort of uniform coding so that they can provide similar security features for the users. In this way, users will feel comfortable to switch from one currency to another without any hassles. The security concerns are grave and in the interest of users as well as companies that offer the currency and their use on various platforms.

SIA partners with tech giant Quant Network

Many companies in this era are interested in the use and development of this technology. In a recent development, SIA, one of the leading payment providers in Europe, has partnered with Quant Network and conducted several interoperability tests with cross-blockchain transactions. All this was done successfully, and it is mainly designed to facilitate data transfer between different blockchains. With such advanced frameworks, it will be easy for developers to implement cross-platform applications into the market. In this way, banks and other financial institutions can allow cross-blockchain transactions without facing any issues.

Markets are not yet ready for cross-blockchain transactions

Even though many solutions exist today with regards to cross-blockchain transactions, it is still not up to the mark. Most of them still work on some centralized platforms, and they have to be devised into decentralized solutions in order to fit them perfectly into the blockchain model. The financial institutions have to open up their systems and make it easy to share information between different platforms. This is also beneficial for processing payments in a quick time, and it will also improve efficiency by a considerable margin.

Issues with cross-blockchain systems

There are several issues associated with the current cross-blockchain systems that are available in the market. The biggest challenge comes with making such transactions cheaper and faster. When it comes to cost issues, it depends on various factors as the cost of KYC for cross border transactions are very high, with several banks and financial institutions. In this regard, a uniform fee structure will be beneficial to cut down costs associated with cross-blockchain transactions.

Speed of transactions

The speed of the transactions also depends on various factors. Its biggest hurdle comes with the combined efficiency of all the blockchains included in the system. The overall speed depends on the lowest-performing system in the chain. It can drag the performance of all other blockchains involved in the system. In this way, a standard has to be reached before implementing interoperable blockchains across various exchanges. We have already seen various outages when prices of certain blockchains move by a huge margin. In this situation, managing interoperable blockchains still look like a distant dream. However, with constant up gradation in technology across various platforms, it may become possible in the future.