Connect with us

Blockchain

Blockchain? Bah!

Why the blockchain won’t be Nirvana.

Republished by Plato

Published

on

Bernhard Mueller

Why the cryptocurrency experiment has failed. Heads up: This article is satire based on an 1995 article about the early Internet. It won’t age well.

Clifford Stoll — Photo by Newsweek

After one decade of blockchain, I’m perplexed. It’s not that I haven’t had a gas of a good time on Crypto Twitter. I’ve met great people and even caught a pump or two. But today, I’m uneasy about this most trendy and oversold community. Visionaries see a future of global financial inclusion, decentralized financial instruments and an objective “source of truth” for trust-less interactions without intermediaries. They speak of decentralized autonomous organizations and sound, private digital currencies. Monetary policy will shift from central banks to immutable distributed ledgers. And blockchain will make government more democratic.

Baloney. Do our computer pundits lack all common sense? The truth is no distributed ledger will replace your central bank, no trustless e-cash can take the place of credit card companies and no blockchain will change the way organizations operate.

Consider today’s crypto world. Ethereum, a smart contract platform, allows anyone to instantly raise funds for an idea. Tokens go out cheaply and instantly, leapfrogging financial regulators. Everyone can do it. The result? Shitcoins. The cacophony of scams more closely resembles the Tulip mania, complete with FOMO, shilling, and exit scams. When everything is a scam, almost everbody gets “rekt”. How about paying with crypto? At best it’s an unpleasant chore: The psychedelic colors of RadWallet replace the friendly swipe of a credit card. And you don’t get to collect any bonus points either. Yet Andreas Antonopoulos, author of several blockchain books, predicts that we’ll soon pay for coffee straight with crypto. Uh, sure.

What the crypto hucksters won’t tell you is that the blockchain is one big ocean of uncensored transactions, without any pretense of oversight. Lacking central authorities, blockchain has become a wasteland of unfiltered transfers of value. You don’t know what’s a useful transaction and what’s spam. Whenever I try to transfer Bitcoin, hundreds of other transactions show up, and it takes 10 minutes for the transaction to be confirmed. Lightning Network is faster, but my node periodically crashes with messages like “database corrupted” and I lose my Bitcoin.

Won’t the blockchain be useful in governance? Ethereum addicts clamor for decentralized autonomous organizations (“DAO”). But when the Ethereum community launched a DAO, how long did it take to get hacked? 1 month.
Not a good omen.

Point and click:
Then there are those pushing crypto into finance. We’re told that blockchain will make financial instruments accessible to anyone. Users will happily take out loans and trade tokenized assets on decentralized exchanges. Who needs loan sharks, banks and centralized exchanges when you can do everything on the blockchain? Bah. These decentralized apps are slow, insecure and difficult to use. Even if there were a trustworthy way to interact with other users on the blockchain — which there isn’t — blockchain is missing a most essential ingredient of finance: The human element. Can you remember even one smart contract you used in the past decade? I’ll bet you remember one or two great bank clerks who made a difference in your life.

Then there’s e-commerce. We’re promised instant payment with low fees — just point and click for great deals. We’ll pay for airline tickets with crypto, pay restaurant bills and settle sales contracts. Credit cards will become obsolete. So how come Visa does more transactions in a day than the entire Bitcoin blockchain handles in a month?

What’s missing from this decentralized wonderland? A controlling entity. Discount the fawning techno-burble about decentralized governance. A immutable monetary policy is a limp substitute for an expert group of central bankers. No peer-to-peer e-cash comes close to the safety and comfort offered by Visa and MasterCard. Decentralized networks give too much control to the common people. And who’d prefer a stagnating economy to a constantly growing one thanks to quantitative easing? While the blockchain beckons brightly, seducingly flashing an icon of economic freedom, this nonplace lures us to disenfranchise all our most trusted allies in central banks and government institutions. A poor substitute it is, this decentralized reality where the people are legion and where — in the holy names of freedom and privacy — benevolent corporations and banks are relentlessly devalued.

See also:

Source: https://blog.goodaudience.com/blockchain-bah-2afda19f7f1?source=rss——-8—————–cryptocurrency

Blockchain

BitGo To Introduce Crypto Custodial Services To New York Clients

Republished by Plato

Published

on

Digital asset trust company, BitGo has added another feather to its cap. The company announced today that it has received a Trust Charter that will enable it to operate as an independent qualified custodian in the United States’ commercial hub, New York. The license was issued by the New York State Department of Financial Services.

Go, BitGo

California-based digital asset solutions provider, BitGo has expanded its horizon. It will now render cryptocurrency custodial services to New York-based institutional clients. The news was confirmed after the state’s Department of Financial Services issued the New York Trust charter to the company.

The news reiterates the company’s motive to exhaust the possibilities of the new financial landscape. It announced in December last year that it had over $16 billion in assets in its custody. With the surge in institutional interest, BitGo now has its eyes set on the world’s financial and commercial epicenter. Speaking on the latest milestone, BitGo CEO Mike Belshe said:

“We are extremely proud to receive the approval for a trust charter from NYDFS to serve the world’s premier financial organizations that are based in New York State. The past year has been exceptional for BitGo and the digital asset markets overall, primarily due to the influx of large financial services institutions that bring a new level of credibility, liquidity and stability to the crypto ecosystem.”

The license will enable New York’s premier institutions to key into the digital revolution while staying within the state’s regulatory framework. BitGo’s list of reputable partners adds an extra layer of trust. It claims to be backed by Goldman Sachs, Craft Ventures, Digital Currency Group, Redpoint Ventures, and Valor Equity Partners.

ADVERTISEMENT

What’s In Store?

BitGo intends to go all-in for its prospective clients. Asides from its fully secured custodial services, it outlined several benefits of the New York Trust.

It will adopt a sophisticated, independently verified system control – SOC 2 Type 2. The SOC 2 Type 2 compliance records how a company safeguards customer’s data. This system control type verifies compliance with standard procedures and often gives a competitive edge.

Prospective clients will benefit from BitGo’s “comprehensive insurance coverage,” which it says covers up to $100 million in digital assets. Its multi-signature technology is yet another selling point.

New York – The New Crypto Hub?

The city of New York is becoming a destination for mainstream cryptocurrency companies. This week, leading blockchain sports and entertainment platform, ChiliZ announced that it would set up an office in New York.

Perhaps this is fueled by the state’s unwavering efforts to maintain a regulated framework that attracts investment and prioritizes asset protection. The New York Financial Services Law, which was enacted five years ago, necessitates the regulation of companies in the digital asset space. The state’s Department of Financial Services approved the sale and trading of eight cryptocurrencies in August last year.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://cryptopotato.com/bitgo-to-introduce-crypto-custodial-services-to-new-york-clients/

Continue Reading

Blockchain

Co-founder of Floyd Mayweather-promoted ICO sentenced to 8 years

Republished by Plato

Published

on

Sohrab Sharma, the co-founder of the notorious celebrity-spruiked initial coin offering of 2017, Centra Tech, has been sentenced to eight years in prison for his leading role in the fraudulent scheme that duped investors out of more than $25 million.

Shama had previously pled guilty to conspiring to commit wire fraud, securities fraud, and mail fraud for material misrepresentations made by him and his co-conspirators to solicit investors to participate in the scheme.

United States attorney, Ilan Graff, described Sharma as having “led a scheme to deceive investors by falsely claiming that the start-up he co-founded had developed fully functioning, cutting-edge cryptocurrency-related financial products.”

“In reality, Sharma’s most notable inventions were the fake executives, fake business partnerships, and fake licenses that he and his co-conspirators touted to trick victims into handing over tens of millions of dollars.”

The court found that Sharma and co-defendants Robert Farkas and Raymond Trapani founded Centra around July 2017, claiming that the firm offered a crypto debit card and other digital asset-related products. The group conducted an ICO from July 2017 until October 2017, distributing unlicensed securities in the form of CTR tokens.

To promote the offering, the group issued materials falsely claiming the team had partnerships with Visa, Mastercard, and Bancorp, money transmitter licensing in 38 U.S. states, along with an entirely fictional CEO boasting more than 20 years experience in the banking sector and a master’s degree from Harvard University.

While the team raised $25 million at the completion of the ICO, authorities found those crypto assets were worth more than $60 million at certain times during 2018.

The U.S. Marshals Service seized 100,000 Ether from Centra which it sold for roughly $33.4 million earlier this year. The proceeds will be made available to potential use in a remission program to compensate victims of the fraud.

Sharma was also sentenced to three years of supervised release and ordered to forfeit more than $36 million.

In December, Centra co-founder Robert Farkas was sentenced to one year in prison for his role in the scheme. Trapani has also pleaded guilty.

Celebrities DJ Khaled and Floyd Mayweather, who promoted the offering on social media in 2017, agreed to six-figure settlements without admitting to wrongdoing in 2019 after Centra’s investors filed a lawsuit against the pair.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://cointelegraph.com/news/co-founder-of-floyd-mayweather-promoted-ico-sentenced-to-8-years

Continue Reading

Blockchain

Spike in digital land and NFT sales push Axie Infinity (AXS) price to new highs

Republished by Plato

Published

on

The popularity and sale of NFTs have exploded over the past few months as many artists and collectors have been consistently selling entire NFT collections for millions of dollars.

One platform that has emerged as a fan favorite is Axie Infinity (AXS), a blockchain-based trading and battling game inspired by games like Pokémon and Tamagotchi. In the game, players collect, breed, raise, battle and trade token-based creatures known as Axies. 

In the past two months, the market cap for AXS has increased 600% from $19.25 million to its current value of $115 million as users rush to the platform for a chance to win a rare and valuable Axie. 

Data from Cointelegraph Markets and TradingView shows that the price of AXS has surged 74% over the past 24-hours, going from $1.78 on March 3 to a new all-time high of $3.10 on March 4 on the back of a 1,000% surge in the 24-hour trading volume. 

AXS/USDT 4-hour chart. Source: TradingView

While AXS has been in an uptrend for months, the altcoin really started to gain momentum at the beginning of February following the launch of Ronin, an Ethereum (ETH) network sidechain designed to help AXS users escape high transaction costs and network congestion on the Eethereum network.

Since Ronin’s launch on Feb. 1, the number of active users on the platform has skyrocketed as NFTs began to explode in popularity and mainstream news channels reported on record-setting sales for one-of-a-kind pieces of digital art.

Axie Infinity active users. Source: Axie Infinity

Digital land in Lunancia, the player-controlled virtual realm of the Axie universe, is also attracting increased attention with one user recently spending a total of $1.5 million to purchase nine digital land plots.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for AXS on March 3, prior to the recent price rise.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. AXS price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ score for AXS reached a high of 76 on March 3, just hours before the price began to rise from $1.84 to its new all-time high at $3.10.

Despite the recent pullbacks experienced in the wider cryptocurrency market, key on-chain metrics like Glassnode’s Reserve Risk indicator show that the Bitcoin rally is still in its early, suggesting that there is plenty of room for BTC to appreciate before it reaches the peaks seen in previous bull markets.

Continued strength for Bitcoin price is likely to translate into an increased interest in NFTs and as the nascent sector expands, projects like AXS could continue to rise in popularity.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://cointelegraph.com/news/spike-in-digital-land-and-nft-sales-push-axie-infinity-axs-price-to-new-highs

Continue Reading
Blockchain4 days ago

Google Finance adds dedicated ‘crypto’ tab featuring Bitcoin, Ether, Litecoin

Blockchain3 days ago

Why Mark Cuban is looking forward to Ethereum’s use cases

Blockchain2 days ago

Amplifying Her Voice

Blockchain4 days ago

NBA Top Shot leads NFT explosion with $230M in sales

Blockchain4 days ago

Litecoin, Monero, Dash Price Analysis: 28 February

Blockchain2 days ago

Libra Coin – A New Digital Currency Developed by FACEBOOK

Blockchain4 days ago

Korean Government To Levy Taxes On Bitcoin Capital Gains Starting 2022

Blockchain4 days ago

How KuCoin Shares (KCS) Can Create a Stream of Passive Income

Blockchain4 days ago

Top 5 cryptocurrencies to watch this week: BTC, BNB, DOT, XEM, MIOTA

Blockchain2 days ago

Blockchain in Sports Betting

Blockchain4 days ago

Polkadot, Cosmos, Algorand Price Analysis: 28 February

Blockchain3 days ago

The Sony PlayStation 5 Game Console Mining Ethereum with almost 100 MH/s is Not True!

Blockchain1 day ago

Will Netflix soon buy bitcoin?

Blockchain2 days ago

DEX aggregator 1inch integrates Bitquery’s API-powered crypto trading data

Blockchain2 days ago

Bitcoin Halving: Definitive Guide (In Just 5 Minutes)

Blockchain4 days ago

Rewardiqa platform takes DeFi to the next level

Blockchain4 days ago

How did Bitcoin lending become so popular?

Blockchain1 day ago

3 key Ethereum price metrics show pro traders are aiming for $2K ETH

Blockchain5 days ago

Kraken Daily Market Report for February 27 2021

Blockchain2 days ago

ChiliZ To Expand Operations, Will Invest $50 Million in the US

Trending