Connect with us
[crypto-donation-box]

Blockchain

Blockchain Bites: Goldman Sachs Investigates Crypto Custody, Solving the Blockchain ‘Trilemma’

Republished by Plato

Published

on

Happy Martin Luther King Jr. Day to our U.S. readers! A former Canadian prime minister said bitcoin could become a global reserve currency, Goldman Sachs is reportedly looking to get into the crypto custody business and MetLife is bullish on CBDCs. 

Top shelf

Goldman Sachs jumping in?
Its crypto custody plans will be “evident soon,” according to an internal source. CoinDesk’s Ian Allison reported the major investment bank has issued a request for information to explore digital asset custody, though it is not interested in becoming a prime broker. Last week crypto-native Anchorage attained conditional approval from the Office of the Comptroller of the Currency to become a national digital bank.

Updating the base
Coinbase, a bellwether for bull runs because the exchange is likely to go down during periods of heavy volatility, is updating its infrastructure to prevent outages. It will also bring on more customer support. Coinbase has sent smoke signals about going public this year, though it has not yet filed.

Digital “belt and road”
China’s Blockchain-based Service Network (BSN) – a permissioned blockchain network for building decentralized applications and tokens – will test a central bank digital currency (CBDC) as early as the second half of 2021, according to a Jan. 15 blog post. Moreover, the network looks to become a blockchain of blockchains with a total of 30 public blockchain integrations slated for this year.

Quick bites

  • NFTs & DEFI: Cointelegraph’s Andrew Thurman speaks to with Aavegotchi’s Jesse Johnson. (Cointelegraph)
  • BITCOIN BUBBLE? Nope! (CoinDesk opinion)
  • RESERVE CURRENCY: Former Canadian prime minister lists bitcoin as possible reserve currency. (CoinDesk)
  • VOLATILITY FEARS: Bloomberg reports bitcoin price swings are keeping CFOs from the market. (CoinDesk)
  • WHAT’S MONEY? Not CBDCs, IMF survey respondents seem to think. (Decrypt)
  • BITCOIN RESURGENCE: Nic Carter explains. (New York)

Market intel

Linked to bitcoin?
LINK, the native token of the Chainlink oracle system, has hit a fresh all-time high as bitcoin trades sideways. CoinDesk’s Omkar Godbole called LINK’s new high at $23.68 (the previous lifetime high of $19.90 was reached in August,) set in overnight trading. Link is just one of many altcoins that are benefiting from consolidation in bitcoin markets and a rotation of capital into more speculative bets, Godbole reports.

At stake

Trilemma dilemma?
MetLife is the latest legacy financial institution to take a hard look at crypto. In a primer titled “The Blockchain Blockbuster,” MetLife Investment Management (MIM), the life insurance giant’s investment wing, examined the nature of money from “Yapese stones to central bank digital currencies.”

My colleague Will Foxley reported that MIM thinks CBDCs are anything but “a passing fad,” (MIM’s words) and represent the “logical progression of money and technology” (Foxley’s words). “[J]ust as the dreams of cryptocurrency developers tend to be rather lofty, so are those of various CBDC initiatives,” the document states.

The 18-page report, published Jan. 8, honestly didn’t say much more than that. It argued that interest in CBDC development was spurred by the explosion of digital assets unleashed after Bitcoin came on the scene. And concluded by saying “western countries” could potentially look towards China’s digital yuan experiment as a guide. Neither points are really debatable, but debate we must!

There is one smaller point worth examining. While Alexander Villacampa and Jun Jiang, the paper’s authors, appear to think CBDCs and cryptocurrencies can (and will) exist side-by-side, there was a moment of existential conflict. I quote:

“Bitcoin and its ilk are constantly battling to maintain a balance between three key concerns known as the ‘Blockchain Trilemma.’ The trilemma, often visualized as a triangle, consists of three issues related to sustainable public blockchain development: scalability, decentralization, and security. It is assumed in the trilemma that by strengthening any one of the triangle’s vertices, at least one of the others must weaken.”

The “scalability trilemma,” attributed to Ethereum co-founder Vitalik Buterin, is a (often constructive) criticism of blockchain networks. Although it’s fallen out of “the discourse” in recent years – a quick Google search showed that the problem was often used as a marketing tool for blockchains that supposedly solved the issue in 2018 – plenty of smart people are still thinking about it.

Called the trilemma, the concept can actually be reduced even further to a sliding scale of decentralization and centralization, with pros and cons of moving between the two. It posits developers can’t have everything when it comes to efficiency and security. Optimizing for decentralization naturally makes the network slower, though more secure. Centralization reduces security, by introducing a single entity that can be attacked, but improves transaction throughput. Simple enough!

But is it right? In 2018, in the heyday of the trilemma, most people cited Bitcoin and Ethereum’s proof-of-work consensus algorithm (the networks’ security design) as prime examples of how decentralization reduces transaction throughput. Thousands of miners create a secure, but slow, network.

Bitcoin developers are looking at layer 2 solutions, like Lightning, to create a usable payments system out of a secure base, while Ethereum developers are exploring layer 2s and a network overhaul. In many of these instances the solution is moving and processing some transactions off-chain, limiting how much a decentralized blockchain can get in the way.

While it’s clear that the contours of the trilemma are real and should be addressed, the real solution is probably to ignore the framing. The tradeoff between scalability and security is a problem that exists across the payments universe. Bitcoin is cumbersome though accessible to anyone, and Visa is lightning-fast but entirely prone to “financial censorship.”

This isn’t to take the Bitcoin Maximalist view that bitcoin is a store of value and doesn’t need to be a payments system, but it is an admission that there’s room in the world for multiple types of systems that all optimize for different things.

Circling back to CBDCs, as Villacampa and Jiang note, the “expansion of electronic payment systems via blockchain technology that has captured the interest of central banks who believe they are uniquely capable of providing not only a better alternative but also able to lay the foundation for an officially-sanctioned global electronic payments regime.” If that includes researchers that think they’ve solved the “scalability trilemma,” more power to them.

Who won Crypto Twitter?

Subscribe to receive Blockchain Bites in your inbox, every weekday.

Disclosure

Source: https://www.coindesk.com/blockchain-bites-goldman-sachs-crypto-coinbase

Blockchain

Spanish Banking Giant BBVA to Launch Bitcoin Trading and Custodial Services in Switzerland

Republished by Plato

Published

on

After conducting tests for several months, the Swiss branch of the large Spanish bank – Banco Bilbao Vizcaya Argentaria (BBCA) – has announced plans to release two services related to the cryptocurrency industry.

  • According to the official statement, private banking customers based only in Switzerland will have the option to trade bitcoin and other digital assets starting from Monday – June 21st.
  • BBVA’s second service will enable its clients to store their digital assets on a regulated platform, and both initiatives will launch simultaneously.
  • Nevertheless, the entity has no plans to offer advice or actively manage any funds related to cryptocurrency investments.
  • Alfonso Gomez, CEO of BBVA Switzerland, explained that these services come after an extended trial period and enhanced customer demand.
  • “This gradual roll-out has allowed BBVA Switzerland to test the service’s operations, strengthen security, and, above all, detect that there is a significant desire among investors for crypto-assets or digital assets as a way of diversifying their portfolios, despite their volatility and high risk.” – he added.

  • The services and a bitcoin management system will also be available in the bank’s mobile application. Users will be able to use to review their investments and track their performance.
  • The bank will provide a personalized digital wallet, which will enable customers to convert BTC and other digital assets to euros or other fiat currencies, and vice versa. The process will be automatic, “without delays and without the illiquidity that affects other digital wallets or independent brokers.”
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 POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/spanish-banking-giant-bbva-to-launch-bitcoin-trading-and-custodial-services-in-switzerland/

Continue Reading

Blockchain

Secret (SCRT) and Injective Protocol (INJ) Technical Analysis: What to Expect?

Secret (SCRT) and Injective Protocol (INJ) Technical Analysis

Rate this post Injective Protocol and Secret prices are holding up above key support levels. Still, INJ/USDT may crash towards $5 as SCRT/USDT buildup towards $2.5. Secret (SCRT) SCRT is the native currency of the privacy-centric focus enabling private and secure computation. Past Performance SCRT/USDT prices remain under the weight of sellers. However, the whipsaw of June 17 with markedly high trading volumes may provide a cushion for hopeful bulls. SCRT is relatively strong at press time, adding seven percent against the USD. Trading volumes are up 36X on the last trading day, buoying buyers. Day-Ahead and what to Expect Reading from the daily chart, SCRT/USDT is deep in bear territory. However, there are signs of strength as June 17 gains may lead the way. Technically, every low may be a loading opportunity for buyers expecting a surge towards $2.5 in line with gains of late May 2021. SCRT/USDT Technical Analysis SCRT bulls are back in contention, which is net bullish. Thus far, SCRT/USDT prices are in range, flattening out following losses of May 21. However, as long as SCRT prices are firm above $1 and May 2021 lows, every low may be a loading opportunity for bulls targeting $2.3 in the medium term. Losses below $1 invalidate the uptrend. Injective Protocol (INJ) INJ primes the protocol. Its creators look forward to truly decentralized solutions explicitly allowing users to trade various assets, including CFDs and derivatives. Past Performance of INJ INJ prices are mainly in range inside a tapering wedge with clear resistance and support lines. On the downside, INJ found support at $8, while the middle BB is a notable resistance line, as the price action of the last month shows. At spot rates, INJ is stable, losing versus the USD but posting minor losses against BTC and ETH. Day-Ahead and what to Expect Technical candlestick arrangements favor bears in the short term. Sellers are pressing lower, unwinding gains in a bear trend continuation pattern, as June 17 bar reveals. Nonetheless, a close above the middle BB may rejuvenate bulls, injecting them with momentum for the next phase higher. INJ/USDT Technical Analysis Technically, every high below the middle BB is a liquidation opportunity for opportunistic bears. In that case, $8 is the next target. Further losses in sync with May losses below the minor support trend line may force INJ/USDT towards $5 or $3 in the medium term. An unexpected surge above $9 ignites demand building up for $11.

The post Secret (SCRT) and Injective Protocol (INJ) Technical Analysis: What to Expect? appeared first on Cryptoknowmics-Crypto News and Media Platform.

Republished by Plato

Published

on

Table of Contents

Rate this post

Injective Protocol and Secret prices are holding up above key support levels. Still, INJ/USDT may crash towards $5 as SCRT/USDT buildup towards $2.5.

Secret (SCRT)

SCRT is the native currency of the privacy-centric focus enabling private and secure computation.

Past Performance

SCRT/USDT prices remain under the weight of sellers. However, the whipsaw of June 17 with markedly high trading volumes may provide a cushion for hopeful bulls.

SCRT is relatively strong at press time, adding seven percent against the USD.

Trading volumes are up 36X on the last trading day, buoying buyers.

Day-Ahead and what to Expect

Reading from the daily chart, SCRT/USDT is deep in bear territory.

READ  SushiSwap (SUSHI) and NEAR Protocol (NEAR) Technical Analysis: What to Expect?

However, there are signs of strength as June 17 gains may lead the way.

Technically, every low may be a loading opportunity for buyers expecting a surge towards $2.5 in line with gains of late May 2021.

SCRT/USDT Technical Analysis

Secret Price Daily Chart for June 18

SCRT bulls are back in contention, which is net bullish.

Thus far, SCRT/USDT prices are in range, flattening out following losses of May 21.

However, as long as SCRT prices are firm above $1 and May 2021 lows, every low may be a loading opportunity for bulls targeting $2.3 in the medium term. Losses below $1 invalidate the uptrend.

Injective Protocol (INJ)

INJ primes the protocol. Its creators look forward to truly decentralized solutions explicitly allowing users to trade various assets, including CFDs and derivatives.

Past Performance of INJ

INJ prices are mainly in range inside a tapering wedge with clear resistance and support lines.

READ  Bitcoin still BULLISH, Ban is Unlikely! Enjin Minecraft Server, Safe Haven Update – Crypto News

On the downside, INJ found support at $8, while the middle BB is a notable resistance line, as the price action of the last month shows.

At spot rates, INJ is stable, losing versus the USD but posting minor losses against BTC and ETH.

Day-Ahead and what to Expect

Technical candlestick arrangements favor bears in the short term.

Sellers are pressing lower, unwinding gains in a bear trend continuation pattern, as June 17 bar reveals.

Nonetheless, a close above the middle BB may rejuvenate bulls, injecting them with momentum for the next phase higher.

INJ/USDT Technical Analysis

INJ Price Daily Chart for June 18

Technically, every high below the middle BB is a liquidation opportunity for opportunistic bears. In that case, $8 is the next target.

Further losses in sync with May losses below the minor support trend line may force INJ/USDT towards $5 or $3 in the medium term.

READ  THETA and Serum (SRM) Technical Analysis: What’s Next?

An unexpected surge above $9 ignites demand building up for $11.

#DeFi #INJ #INJ/USDT #Injective Protocol #SCRT/USDT #Secret Network

Source: https://www.cryptoknowmics.com/news/secret-scrt-and-injective-protocol-inj-technical-analysis-what-to-expect/

Continue Reading

Blockchain

Bitcoin isn’t as Anonymous as People Think it is: Cornell Economist

Bitcoin Anonymous Cornell Economist

Rate this post Eswar Prasad, an economist at Cornell University that says that Bitcoin isn’t as anonymous as people think it is. Other issues pointed out by him include Bitcoin mining being extremely bad for the environment, and that it doesn’t work well as a currency. Cornell Economist Points Out more Flaws of Bitcoin Besides Not Being Anonymous Leading cryptocurrency Bitcoin isn’t as anonymous as people think it is, according to a professor at Cornell University, Eswar Prasad, and formerly head of the International Monetary Fund’s China division. In an interview with CNBC on June 17, Prasad has highlighted the flaws of the flagship cryptocurrency. Firstly, he highlights that Bitcoin mining is an energy-intensive process and that it harms the environment and that it’s “certainly not good for the environment”. On the counterpart, he does highlight that Ethereum requires less energy than the flagship digital asset, saying: “That is going to be much less energy-intensive, and it could deliver a lot of the benefits that bitcoin was supposed to deliver. It could also make transactions much cheaper and quicker.” Secondly, he points out that BTC isn’t as anonymous as people think it is: “The main idea of bitcoin was to provide pseudonymity. But it turns out that if you use bitcoin a lot, and especially if you use Bitcoin to get any real goods and services, then it becomes possible eventually to link your address or your physical identity to your digital identity.” He reminds the U.S. government’s recent success in tracking and retrieving part of the Bitcoin ransom from the Colonial Pipeline ransomware attack has increased doubts about the security and non traceability of Bitcoin transactions. Bitcoin is a “Slow and Cumbersome” Medium of Exchange Lastly, he says that BTC doesn’t work well as a currency as it’s “slow and cumbersome” to use it to pay for goods and services and that the market is very volatile, adding: “So you could take a bitcoin to a store and one day, get a cup of coffee and another day, with the same bitcoin, be able to treat yourself to a lavish meal. So that doesn’t work well for the medium of exchange” According to him, BTC has become a speculative asset for people who hope it will appreciate in value, rather than because they want to use it as a payment mode.

The post Bitcoin isn’t as Anonymous as People Think it is: Cornell Economist appeared first on Cryptoknowmics-Crypto News and Media Platform.

Republished by Plato

Published

on

Table of Contents

Rate this post

Eswar Prasad, an economist at Cornell University that says that Bitcoin isn’t as anonymous as people think it is. Other issues pointed out by him include Bitcoin mining being extremely bad for the environment, and that it doesn’t work well as a currency.

Cornell Economist Points Out more Flaws of Bitcoin Besides Not Being Anonymous

Leading cryptocurrency Bitcoin isn’t as anonymous as people think it is, according to a professor at Cornell University, Eswar Prasad, and formerly head of the International Monetary Fund’s China division.

In an interview with CNBC on June 17, Prasad has highlighted the flaws of the flagship cryptocurrency.

READ  Retail Investors on Reddit are Shifting from Equities to Cryptocurrencies

Firstly, he highlights that Bitcoin mining is an energy-intensive process and that it harms the environment and that it’s “certainly not good for the environment”. On the counterpart, he does highlight that Ethereum requires less energy than the flagship digital asset, saying:

“That is going to be much less energy-intensive, and it could deliver a lot of the benefits that bitcoin was supposed to deliver. It could also make transactions much cheaper and quicker.”

Secondly, he points out that BTC isn’t as anonymous as people think it is:

“The main idea of bitcoin was to provide pseudonymity. But it turns out that if you use bitcoin a lot, and especially if you use Bitcoin to get any real goods and services, then it becomes possible eventually to link your address or your physical identity to your digital identity.”

READ  Binance All-Time High! EOS FOMO, BitTorrent and SkyCoin Surge, Harmony IEO – Crypto News

He reminds the U.S. government’s recent success in tracking and retrieving part of the Bitcoin ransom from the Colonial Pipeline ransomware attack has increased doubts about the security and non traceability of Bitcoin transactions.

Bitcoin is a “Slow and Cumbersome” Medium of Exchange

Lastly, he says that BTC doesn’t work well as a currency as it’s “slow and cumbersome” to use it to pay for goods and services and that the market is very volatile, adding:

“So you could take a bitcoin to a store and one day, get a cup of coffee and another day, with the same bitcoin, be able to treat yourself to a lavish meal. So that doesn’t work well for the medium of exchange”

According to him, BTC has become a speculative asset for people who hope it will appreciate in value, rather than because they want to use it as a payment mode.

READ  Grayscale Bitcoin Trust Sees Rebound as Institutional Demand Increase

#Bitcoin #Cornell University #Eswar Prasad

Source: https://www.cryptoknowmics.com/news/bitcoin-isnt-as-anonymous-as-people-think-it-is-cornell-economist/

Continue Reading
4 days ago

Valorant Ep. 2 FORMATION Player Card: How to Claim

News4 days ago

The World Economic Forum’s Cryptocurrency Guide Lists Its Choice Of “Winning” Projects

Uncategorized4 days ago

Mark Cuban: DeFi could be the ‘next great growth engine’ for the US

Uncategorized1 day ago

The World Bank wants no part in El Salvador’s Bitcoin revolution

News5 days ago

Shiba Inu Drops Hard Below Critical Support Level

Uncategorized3 days ago

Banks Should be Scared of DeFi Warns Mark Cuban

Blockchain3 days ago

Grayscale to Unlock 16,000 Bitcoin Shares on July 19

Uncategorized1 day ago

Healthcare: A trillion dollar opportunity for blockchain?

Blockchain5 days ago

Will Ripple’s new ODL corridors impact XRP’s price?

Blockchain4 days ago

Mark Cuban Demystifies DeFi and Yield Farming for Beginners

Blockchain2 days ago

Coinbase Pro to List Dogecoin Rival Shiba Inu, Token Gains 33% in Price

Blockchain5 days ago

Elon Musk: Tesla Will Resume Allowing Bitcoin Transactions With One Condition

Blockchain4 days ago

Edgewater Markets Taps Michael Cleary as Its New Director of Sales

Blockchain4 days ago

Deadpool Soundtrack Composer Tom Holkenborg To Auction ‘Soundtrack Of Your Life’ NFT

Uncategorized5 days ago

PSG.LGD sweep Evil Geniuses, win WePlay Esports AniMajor

Blockchain24 hours ago

GSA To Add Litecoin For The First Time In Upcoming Cryptocurrency Auction

5 days ago

PSG.LGD triumph at WePlay AniMajor

Blockchain4 days ago

Bitcoin derivatives data shows pro traders ignored today’s $41K pump

Blockchain4 days ago

Wall Street Wonders if Bitcoin Could Replace Fiat Currencies

Uncategorized5 days ago

Why NFL’s Russell Okung Asked Nigeria To Adopt The Bitcoin Standard

Trending