Craig Wright talks simplified payment verification

When the Bitcoin concept was first developed, it was designed to be a peer-to-peer payment solution that would avoid constraints and restrictions tied to central bank-controlled fiat and conventional payment channels. It may have morphed since then into something a little different, at least by many cryptocurrency projects, but the core purpose of digital currency hasn’t changed. Dr. Craig Wright often writes on restoring the premise behind Bitcoin to its original form, citing examples from the Bitcoin white paper on how everything had been properly laid out right from the start. As Bitcoin SV (BSV) works to restore Bitcoin to its Genesis form, Wright has published a new article on how payments can be achieved simply, without all of the hassle that has since been integrated into blockchain transactions.

Simplified Payment Verification (SPV) was laid out in detail in the Bitcoin whitepaper. Wright had explained in that Bitcoin manual how payments could be easily verified without a full network node being needed, and says in his new paper, “Section 5 of the white paper defines nodes in Bitcoin; more critically, to be a node, you need to be mining transactions. SPV or simplified payment verification is a critical aspect of scaling Bitcoin. I thought it was rather clear and obvious when I released the white paper, but it seems that people have overlooked or misunderstood all of the different aspects.”

In a true peer-to-peer system, to which BTC and other crypto projects no longer belong, the transaction is a direct exchange between two entities, whether it be two people, a person and a business or a business and another business. A customer selects goods to purchase from a vendor, makes a payment directly to the vendor and the vendor then validates the transaction and sends it to the blockchain for clearing and settlement.

As it stands now, transactions have to be verified before being considered legitimate. That verification process typically requires six miners giving their approval of the transaction. However, this was never meant to be part of the process. Wright explains, “Users in the system are only required to maintain a copy of the block header to which they can compare transactions. At present, the block header is under 50 MB in size. Many image files can exceed such levels. A decade from now, the growth will only be linear.”

As Wright has repeatedly pointed out, Bitcoin was never designed to circumvent financial laws or procedures; it has always been meant to interact with existing structures and coexist with other payment options – at least until crypto is recognized as the next step in the economic evolutionary cycle. Just like there are steps in place with fiat transactions now to determine if there is any illicit activity, the same is possible with Bitcoin, without the need for the convoluted transaction processing that currently takes place.

Wright, as are many true Bitcoin believers, is still optimistic about Bitcoin’s future and sees a day when the realization is finally made regarding crypto’s true purpose. He asserts, “As governments, regulators, and law enforcement start to wake up and see the true design of Bitcoin, they will start to understand that it is a system that is friendly to law. It assists in the tracing of transactions, and provides a high level of privacy for the small cash like transfers whilst also being able to immutably record money laundering and crimes.”

CoinGeek Seoul: China sees explosion of project development with BSV

Across the globe, there is a lot of development taking place on the Bitcoin SV (BSV) blockchain. The reasons are simple—BSV can offer a more robust solution at transaction prices that are only a fraction of those of any other blockchain, and because BSV is the true and original Bitcoin. As far as development goes, a lot of it is coming out of China and a presentation during the recent CoinGeek Seoul Conference shows exactly why this is happening.

CoinGeek Seoul: China sees explosion of project development with BSV

 

Wang Fuqiang, the co-founder and CEO of BitMesh, took the stage to talk about some of the exciting projects his company is working on. Among these are applications that are directly tied to Metanet, the future of the Internet, which is going to revolutionize how the world views digital data in ways never thought possible with conventional solutions.

Bitcoin SV and China - CGSeoul panel

For example, BitMesh has developed a way to use the BSV wallet to help create more secure and legitimate data delivery channels. From building a webpage to communicating through email, all forms of digital communication can be protected, as well as, in virtually all cases, monetized. With BitMesh, email spam and hacking become things of the past, allowing nothing more than clean conversations, the way email was originally intended.

BitMesh is also helping to change how applications can be developed for use on Metanet. MetaGlue was recently introduced to facilitate development on BSV that allows solutions to be introduced in days, not weeks or months, and which provide a mechanism for applications based on different computer language structures to interact with one another. There isn’t any other blockchain that can offer something even remotely similar.

Cityonchain.com was in Seoul for the conference, as well, with the company’s chief marketing officer, Ivy Dang, discussing how the platform is evolving. It just introduced version 2.0 and now has 9,000 cities listed, all with the ability to integrate solutions offered by the Money Button, WeatherSV and others.

CoinGeek Seoul: China sees explosion of project development with BSV

 

 

With conventional Internet applications, such as websites that require credentials to enter, that login action is typically stored in a separate area or controlled by a third party, depending on the website. However, BSV is making it possible for websites to authorize access directly on the blockchain, providing a more secure, efficient solution. This also facilitates secure solutions for RateSV, a company that is developing a platform to allow for the monetization of all Internet data. As the company’s co-founder, He Qiming, said during his CoinGeek Seoul presentation, the lack of a standard payment system is the downfall of the current Internet and RateSV is going to make it possible to monetize all data, prove data ownership and provide a mechanism that can authorize, or restrict, access to destinations on the web. This wouldn’t be possible if not for the power of the BSV blockchain.

Bitcoin SV and China - CGSeoul panel

There are many more projects coming and, as Lise Li of the Bitcoin Association indicated, some of these are “secret” for now until they’re ready to be released. Chinese developers are helping to shape the future of blockchain use because of a great amount of interest and the majority, as has been the case elsewhere, have turned to BSV as the most practical development platform.

Indonesia hosts lawyers to train on cryptocurrency

While many countries around the globe are actively embracing cryptocurrencies, that doesn’t mean all of them are doing so. In fact, there are eight countries that have banned the sale and ownership of these digital assets in some form, and one of those countries, Indonesia, will be hosting a gathering of lawyers from the other seven for a seminar specifically dedicated to cryptocurrencies.

The seminar is in direct response to an increase in illegal activity across the globe related to the use of these digital assets. Whether it is fraud, money laundering, or assistance in criminal ventures, BTC, and other digital currencies are quickly becoming a great source of revenue to use to hide these transactions from law enforcement officials.

Indonesia is one country that has banned all digital currencies. They recognized the growing number of crimes related to crypto assets, and have sought to work with other countries to fight this kind of activity.

As Dr. Arminsyah, the Deputy Attorney General puts it:

The development of technology and cryptocurrency crime that follows it will always grow without slowing down, let alone waiting for us to catch up, it will instead continue to go so fast, leaving behind anyone who’s too late to anticipate and adopt it. Cross-country cryptocurrency crime must be seen as a common enemy, therefore it cannot be addressed or faced partially by each country but must be prevented, fought, and eradicated holistically and together.

As part of the training, the eight countries will discuss what steps to take to fight these kinds of crimes. Included at the event will be Turkey, Singapore, Australia, Malaysia, Thailand, Russia, and Hong Kong. While all of these other nations don’t have as strict of an enforcement on their bans as Indonesia does, they all restrict these currencies in some form.

Dr. Arminsyah explained that he hoped that this training will help prosecutors and other law enforcement officials to recognize illegal activities using these currencies, so they can be shut down immediately.

“I hope that the coordination established by the trainees is not merely formal… but also through informal cooperation, prosecutors to prosecutors, police to prosecutors, and customs to prosecutors helping each other in the form of information delivery, data, advice, and the provision of facilities when they need each other.”

Crypto theft at Fusion may have been inside job

The Fusion swap wallet was hit by hackers on September 28, resulting in the theft of 10 million native FSN and 3.5 million ERC20 FSN tokens, according to a blog published by the company. They report that the only this wallet was affected and that they have not received any other reports of theft.

The impact was immediate. The value of FSN was cut by half, going from around $0.50 to below $0.25 in just over seven hours.

Fusion Protocol is powered using a blockchain-based platform. This allowed for the exchanging of “stablecoins” and other digital tokens.

The theft already have investigators believing that this may be an inside job. In the post, it was written, “There is uncertain evidence showing that theft may have been caused by personnel related to the Fusion Foundation.”

Some indicators were provided as to why Fusion believes this was an inside job. This includes the announcement that the private key to Fusion’s wallet had been stolen. However, they did assure customers that the technology used to power the platform “remains secure.”

During this last summer, Fusion Foundation migrated the FSN tokens away from the ERC-20 standard. Their purpose was to bring legacy financial institutions into their blockchain network by easily facilitating the transfer of stablecoins and other types of digital assets.

In an interview following the announcement, Chief product Ofc. John Liu explained that the company has already developed a clear understanding of how the hacker was able to de-monetize their take. “This is not a newbie hacker. This criminal has been preparing this in advance,” Liu explained in the interview. “He was well prepared to implement this.”

Currently, the foundation is tracking the coins and is working to isolate them. To this point, the vast majority of the hijacked funds have gone through two primary exchanges, Bitmax and Hotbit. As part of the investigation, OKEX, Huobi, Bitmax, Citex, and Hotbit have stopped accepting any further deposits or transfers of FSN.

No information has been provided on how they are isolating these specific funds. It is believed that information will not be released until a further date, if at all. The reality is that with over 25% of the network’s coins being stolen, there is an incredible need to act quickly and to ensure that they are able to retrieve these funds expeditiously.

Crypto could be ‘money of the Internet’: Hester Peirce

Financial regulators are too paternalistic. This is the viewpoint of “Crypto Mom,” better known as U.S. Securities and Exchange (SEC) Commissioner Hester Peirce. She earned her moniker for calling out regulators on several occasions for their heavy-handed approach to digital currencies and she’s back again, stating that it’s possible crypto could eventually become the money of the Internet.

Peirce was on hand for the Digital Asset Compliance and Market Integrity (DACOM) Summit held Thursday in New York, where she conducted a Q&A with attendees that focused mostly on the state of digital currencies and their regulatory oversight. Always excited about the prospects for blockchain and crypto innovation, she stated, “It’s been an honor to be adopted by a group of people who are really thinking in such exciting and interesting ways and trying to think about ways to change the world,” adding that, as the technology advances, digital currencies will become “much more the money of the Internet.”

Crypto Mom also took a few minutes to reiterate her stance that the SEC is not giving digital currencies their fair attention. She asserted, “If you want a government that’s more forward-thinking on innovation, that means that if something goes wrong, you can’t go running back to the government and say ‘Hey, you didn’t protect me from myself!’ …I think we need to be a little less paternalistic.”

Peirce has become somewhat disenchanted with how slowly the SEC is moving on crypto-related activity. A case in point is how long it is taking to make a decision on crypto exchange-traded funds (ETF), still not able to draw its own conclusion more than two years after the subject first came up. It has repeated sought delay after delay in making a decision, only to ultimately shoot all crypto ETF requests down.

She asserted during the summit, “When I came to the SEC one of my hopes was to help change the way it addresses innovation. In my first round I saw it was slow.” Peirce believes that this slow approach is one of the reasons the U.S. is losing its technological edge and becoming less competitive, a viewpoint that has been shared by other regulators and lawmakers for some time. However, until SEC Chairman Jay Clayton either opens his eyes or is replaced, the odds of significant changes being made are slim.

Since commissioners serve five-year terms and Clayton has been in for just over two, it could still be a while before someone else is at the helm.

Crypto trading not regulated enough for real exchanges: SEC chair

The chair of the U.S. Securities and Exchange Commission (SEC), Jay Clayton, doesn’t believe that cryptocurrency could be offered on major exchanges until the Bitcoin ecosystem is regulated more strictly. There has been no shortage of tries to take crypto trading mainstream, but they have all met strong resistance due to what regulators deem is too much volatility. This volatility, they assert, is enough for them to not want to create regulations. It’s an odd argument, given the fact that hedge funds, which have been extremely volatile since first being offered almost 70 years ago, are alive and well with no SEC intervention.

The SEC’s position is baffling and more than just a little hypocritical. The commission, as well as other financial regulators, routinely point to violent price swings and cases of fraud, as well as deep investor skepticism, as reasons for not wanting to open the doors for greater crypto trading. All three of those arguments are easily found, on virtually a daily basis, on current markets that invite investors with open arms.

The position also creates a Catch 22 for crypto. The general belief is that regulations would help mitigate most of the risks and the arguments keeping crypto is an unviable alternative in regulators’ eyes. However, those same regulators won’t implement policies until the risks are mitigated.

Speaking at the Delivering Alpha conference, which was presented by CNBC and Institutional Investor, Clayton stated, “If [investors] think there’s the same rigor around that price discovery as there is on the Nasdaq or New York Stock Exchange…they are sorely mistaken. We have to get to a place where we can be confident that trading is better regulated.”

The hedge fund example is pertinent for several reasons. It is an example of an investment that is purely based on risk, offering greater returns against greater risks. Hedge funds are also responsible for a number of financial collapses over the years and a great number have failed. Hedge funds can be offered for virtually anything and have a significant amount of latitude to do almost anything they want, as long as they disclose their strategies up front. They also usually require that investment money be tied up for years, regardless of whether or not the supported elements rise or fall – there’s no good way to exit in a down market, which leads to greater losses.

Philippine police break up alleged crypto scam

On September 15, it was reported that Philippine National Police (PNP) raided the office of an alleged cryptocurrency scam that was targeting investors from China. According to the report, law enforcement officials were acting on a tip from the Chinese government when they discovered the online investment scam.

The offices were raided as part of a joint task force involving several different law enforcement agencies in the country. According to the report, 277 Chinese nationals were arrested during the raid in Pasig City. Each was being held on suspicion of using cryptocurrency operations to trick unsuspecting investors back in mainland China.

The raid took place on September 11 and was led by agents with the Bureau of Immigration. The raid was conducted on Grapefruit Services Inc., which is located on the 37th floor of the One Corporate Center in Ortigas Center, the business hub of Pasig City. Grapefruit had received the proper authorization as a provider of Golden Millennial Quickpay Inc. Ltd., which is a cryptocurrency company located offshore and licensed by the Cagayan Economic Zone Authority (CEZA).

CEZA is a government-owned corporation which oversees the Cagayan Special Economic Zone and Freeport. These special economic areas were created to attract foreign and local investment. The government of the Philippines has allowed cryptocurrency firms to operate in this region since April 2018, but they must receive a license from the CEZA in order for them to do so. It appears from all reports that this company had received the proper licensure.

According to reports, the firm had been operating outside of the designated zone. This resulted in a violation which brought the entire operation to the attention of law enforcement officials. CEZA officials had no comment related to the matter.

While the scam appears to have been averted before investors were defrauded, there are far too many reports across the globe of individuals being cheated by these scammers. Country set his Saudi Arabia and Malta have been trying to warn their citizens against these types of scams.

Despite this, it is becoming far too frequent a story related to digital currencies. Recently, law enforcement officials in Australia reported that over $4.1 million was fraudulently obtained in 2018, a 190% increase over the previous year.

It is another cautionary tale that investors need to be on their toes and have their eyes wide open. Offers that sound too good to be true often are.

Boxing champ Manny Pacquiao launches first celebrity crypto

Filipino boxing champion Manny Pacquiao has launched his own cryptocurrency, becoming the first celebrity to be a fighter in the crypto arena. The 40-year-old boxer-cum-politician launched PAC tokens in a recent event in Manila to over his 2,000 fans who had attended.

Considered by many as one of the greatest boxers of all time, Pacquiao becomes the first celebrity to launch their own cryptocurrency. However, he won’t be the last, with several other celebrities having announced their intentions to launch similar projects.

The PAC token will give the Pac-man’s fans the opportunity to buy merchandise and interact with the boxer on social media platforms. The tokens will also allow the fans to participate in unique challenges by Pacquiao and contest to win attractive prizes and rewards. The fans can as well redeem their Pac tokens for products such as an autographed Pacquiao glove or bid for an exclusive VIP box seat for a boxing match.

Pacquiao’s fans can also take part in his philanthropic efforts by donating using Pac tokens.

The tokens will be listed on Singapore’s Global Crypto Offering Exchange (GCOX). As revealed by the South China Morning Post, former Liverpool and England star Michael Owen and Sheikh Khaled bin Zayed al-Nahyan, a member of Abu Dhabi’s ruling family, are some of the investors in the project.

While Pacquiao’s token is the first celebrity crypto to list on GCOX, it won’t be the last. The exchange’s founder and CEO Jeffrey Lin revealed that American pop singer Jason Derulo and Danish tennis player Caroline Wozniacki will also launch their tokens on the platform. “We are not here to raise a lot of money but to build an ecosystem,” hhe told the outlet.

Celebrities have been heavily involved in the crypto industry, some to make the world a better place and others just for quick bucks. For some, it hasn’t panned out so well as was the case with Pacquiao’s great rival Floyd Mayweather Jr. The American boxer landed in trouble with the SEC after he was found to have failed to disclose that he was paid to promote an ICO. The firm he promoted, Centra Tech, ended up being a scam project and took off with millions of dollars. The SEC fined Mayweather over $600,000 for his involvement.

Buying Bitcoin SV made easier, safer with BuyBSV site

Getting ahold of Bitcoin SV (BSV) using credit cards or via bank transfer is now easier—and safer—thanks to the newly-launched BuyBSV.com platform.

The website, powered by Coinify, allows users to create an account and buy €100 ($113) worth of BSV. Upgrading their account will enable customers to buy as much as €10,000 ($11,356) worth of BSV. Users are required to have a Bitcoin SV wallet, and they can choose from any of these providers: Centbee, ElectrumSV, HandCash, MoneyButton, and RelayX.

While Bitcoin SV is regulation friendly, BuyBSV allows customers to buy immediately without the hassle of personal identification. This is applied to amounts—€100 in this case—that are below the Anti-Money Laundering threshold for Know-Your-Customer legal compliance. All accounts have a minimum €50 order for Visa or Mastercard payments.

There are three account levels: level one, which only requires customers to create an account on BuyBSV.com. Bank transfer limits are unavailable for this account level, but customers will have a €100 limit for their first order, and €300 for all succeeding orders if they’re paying via credit or debit card. Yearly limit is capped at €3,000.

To upgrade to a level two account, users will need to upload an identity document such as passport, national ID or driver’s license. Credit and debit card limits are capped at €100 for the first order, and €800 for the next orders. For payments via bank transfer, the minimum order is €100 and capped at €3,000. No annual limits for both options for level two account holders.

Customers wishing to avail of the level three BuyBSV account must complete at least €10,000 buy or sell orders. Security verification for this account will take 14 days.

Level three account holders have a €3,000 limit for daily orders paid with credit or debit cards, and €10,000 if they’re paying via bank transfer. No annual limits are set for both options.

The BuyBSV service is currently available for customers in Canada, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, and Ireland. Customers in Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, Romania, and United Kingdom can buy BSV via the web service. More countries are expected to be added soon.

BuyBSV.com is an example of why exchange delisting attacks are not effective against BSV. Utility tokens, after all, only need on- and off-ramps; they don’t need to be speculated on.

To start using the BuyBSV.com service, visit the website today.

Crypto market daily report – June 11, 2019

Crypto market daily report – June 17, 2019

The cryptocurrency markets continued their bullish tendencies on Monday with several of the major coins keeping their positions over the weekend. SegWitCoin (BTC) continued holding its own at $9,100 mark and was trading at around $9,120 at press time on Monday. Ethereum (ETH) also held on to its level at just under the $270 mark but appeared bullish at this level.

Bitcoin SV (BSV) was stable at the $212 level with very strong support. Ripple (XRP) was also in positive territory and was up by around 6% to the $0.43 level, whilst EOS remained just above the $7 mark with more bullish anticipation in this territory. Litecoin (LTC) was slightly down at around $135 after having reached the $138 mark over the weekend or a decline of around 2%.

Other larger market cap coins had mixed fortunes with Cardano (ADA) stable at just above the $0.09 level, whilst Stellar Lumens (XLM) was down by around 1% to just under the $0.13 mark. NEO continued rising, albeit minimally to around the $14.50 mark and also appeared bullish at this level. IOTA however went in the opposite direction and was down by around 4% to the $0.436 mark as selling pressure hit the market. BCHABC was down by around 1.6% to the $430 mark after having risen considerably over the weekend.

Coins with smaller market caps continued to stabilize their position with most of them showing considerable resistance. BAT was up by around 7% to the $0.35 mark, whilst ZEC remained stable at the $94.50 level after having risen by well over 10% over the weekend. HOT and QTUM were in positive territory by 5 and 3% respectively, whilst FTM began regaining some of its past losses with a rise of 5% to the $0.027 mark.

ZIL was another considerable climber and was up by no less than 13% to the $0.026 mark. Ethereum Classic (ETC) was slightly down by around 1.4% to the $8.70 mark.

Circle to shut down its payment app to support other products

Circle to shut down its payment app to support other products

Fintech firm Circle has announced that it’s shutting down its payment app, Circle Pay. The Boston-based firm said that while Circle Pay pioneered the social payments movement, the company had shifted its focus to other areas.

Circle Pay has been around for the past five years. The mobile app sought to make crypto payments as easy as “sending a message over the phone,” Circle’s founder and CEO Jeremy Allaire stated at the time of launch. Circle Pay was determined to compete with the likes of Venmo and Square’s Cash App which have been the outright leaders in the U.S. payments market for the past few years. However, everything hasn’t gone to plan. Circle Pay has failed to gain the traction that its founders hoped it would, failing to rank in the top 100 finance apps on the apps store. Cash App and Venmo are first and second, respectively.

Circle advised all Circle Pay customers to cash out the funds in their accounts immediately. Those who hold BTC on their Circle Pay accounts were also advised to send their tokens to other wallets, with Circle recommending Poloniex, an exchange it acquired early last year.

The shutdown will take place in three phases. On July 8, customers will no longer be able to transact using Circle Pay, but they will still be able to cash out their funds. On July 31, the company will attempt to return the customers’ funds to their registered bank accounts or cards. On September 30, Circle will cease all support for its payment app and all remaining funds will be turned over to state governments in accordance with applicable law.

Regarding customers who held SegWitCoin BTC prior to the 2017 hard fork, the company stated, “As previously announced, Circle will support and distribute Bitcoin Cash and Bitcoin SV holdings to eligible customers who held a Bitcoin balance with Circle Pay prior to the date of the Bitcoin Cash fork, August 1st, 2017. Eligible customers in good standing will be able to withdraw both their Bitcoin Cash and Bitcoin SV by the end of September.”

Circle, which is backed by Goldman Sachs and IDG Capital, pledged to continue the development of its other products and services. They include the USD Coin, the company’s stablecoin which has received the backing of U.S. crypto exchange Coinbase. The two companies have partnered as founders of Centre, a consortium that fosters the adoption and development of the stablecoin.

The shutdown of Circle Pay comes barely a month after the company announced that it was downsizing in response to market conditions. The company laid off 30 employees in its Boston headquarters and its New York office, blaming it on the lack of regulation which was hurting innovation in the crypto industry.

Crypto market daily report – June 3, 2019

Crypto market daily report – June 14, 2019

After posting considerable gains on Thursday, the cryptocurrency markets retreated slightly Friday. SegWitCoin BTC was up by around 2% to the $8,200 mark. Ethereum (ETH) retreated slightly by around 1.5% from its gains on Thursday and was trading at around $254 at press time after having reached the $260 mark during the last 24 hours.

Bitcoin SV (BSV) posted an impressive 10% increase and reached the $210 level over the past 48 hours before dropping to $205—still a rise of 7%, making it the best performing currency over the past 24 hours.

Other cryptocurrencies with larger market caps demonstrate mixed fortunes. Litecoin (LTC) continued to decline and fell below the $130 level at press time or a 5% decline to trade at around $128. Ripple (XRP) was also disappointingly stagnant and declined by around 1% to just below the $0.40 level and was trading at around $0.3975 on Friday.

EOS was down by a similar 1.5% to the $6.40 level, whilst BCHABC was the only other coin which seemed to buck the trend and was up by around 2% to the $408 level after having reached the $418 mark on Thursday. Cardano (ADA) was down by 3% to the $0.0898 level, whilst NEO was minutely up by around 1.5% to the $13.04 level. Stellar Lumens (XLM) was correspondently down by around 2% to the $0.124 level. IOTA remained stable at the $0.432 level.

Cryptocurrencies with smaller market caps exhibited mixed fortunes but the star performer of the past 24 hours was undoubtedly LINK which rose by an astonishing 65% to the $1.80 mark over Thursday before dropping to the $1.60 level at press time on Friday. Binance Coin (BNB) exhibited a steep decline to the $33.30 mark or a drop of 6% after it had risen to just under the $36 mark on Thursday. Most other coins such as BTT, TROn and ATOM were also in decline.