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Why i’m bullish on Zilliqa (long read)

Edit: TL;DR added in the comments
 
Hey all, I've been researching coins since 2017 and have gone through 100s of them in the last 3 years. I got introduced to blockchain via Bitcoin of course, analyzed Ethereum thereafter and from that moment I have a keen interest in smart contact platforms. I’m passionate about Ethereum but I find Zilliqa to have a better risk-reward ratio. Especially because Zilliqa has found an elegant balance between being secure, decentralized and scalable in my opinion.
 
Below I post my analysis of why from all the coins I went through I’m most bullish on Zilliqa (yes I went through Tezos, EOS, NEO, VeChain, Harmony, Algorand, Cardano etc.). Note that this is not investment advice and although it's a thorough analysis there is obviously some bias involved. Looking forward to what you all think!
 
Fun fact: the name Zilliqa is a play on ‘silica’ silicon dioxide which means “Silicon for the high-throughput consensus computer.”
 
This post is divided into (i) Technology, (ii) Business & Partnerships, and (iii) Marketing & Community. I’ve tried to make the technology part readable for a broad audience. If you’ve ever tried understanding the inner workings of Bitcoin and Ethereum you should be able to grasp most parts. Otherwise, just skim through and once you are zoning out head to the next part.
 
Technology and some more:
 
Introduction
 
The technology is one of the main reasons why I’m so bullish on Zilliqa. First thing you see on their website is: “Zilliqa is a high-performance, high-security blockchain platform for enterprises and next-generation applications.” These are some bold statements.
 
Before we deep dive into the technology let’s take a step back in time first as they have quite the history. The initial research paper from which Zilliqa originated dates back to August 2016: Elastico: A Secure Sharding Protocol For Open Blockchains where Loi Luu (Kyber Network) is one of the co-authors. Other ideas that led to the development of what Zilliqa has become today are: Bitcoin-NG, collective signing CoSi, ByzCoin and Omniledger.
 
The technical white paper was made public in August 2017 and since then they have achieved everything stated in the white paper and also created their own open source intermediate level smart contract language called Scilla (functional programming language similar to OCaml) too.
 
Mainnet is live since the end of January 2019 with daily transaction rates growing continuously. About a week ago mainnet reached 5 million transactions, 500.000+ addresses in total along with 2400 nodes keeping the network decentralized and secure. Circulating supply is nearing 11 billion and currently only mining rewards are left. The maximum supply is 21 billion with annual inflation being 7.13% currently and will only decrease with time.
 
Zilliqa realized early on that the usage of public cryptocurrencies and smart contracts were increasing but decentralized, secure, and scalable alternatives were lacking in the crypto space. They proposed to apply sharding onto a public smart contract blockchain where the transaction rate increases almost linear with the increase in the amount of nodes. More nodes = higher transaction throughput and increased decentralization. Sharding comes in many forms and Zilliqa uses network-, transaction- and computational sharding. Network sharding opens up the possibility of using transaction- and computational sharding on top. Zilliqa does not use state sharding for now. We’ll come back to this later.
 
Before we continue dissecting how Zilliqa achieves such from a technological standpoint it’s good to keep in mind that a blockchain being decentralised and secure and scalable is still one of the main hurdles in allowing widespread usage of decentralised networks. In my opinion this needs to be solved first before blockchains can get to the point where they can create and add large scale value. So I invite you to read the next section to grasp the underlying fundamentals. Because after all these premises need to be true otherwise there isn’t a fundamental case to be bullish on Zilliqa, right?
 
Down the rabbit hole
 
How have they achieved this? Let’s define the basics first: key players on Zilliqa are the users and the miners. A user is anybody who uses the blockchain to transfer funds or run smart contracts. Miners are the (shard) nodes in the network who run the consensus protocol and get rewarded for their service in Zillings (ZIL). The mining network is divided into several smaller networks called shards, which is also referred to as ‘network sharding’. Miners subsequently are randomly assigned to a shard by another set of miners called DS (Directory Service) nodes. The regular shards process transactions and the outputs of these shards are eventually combined by the DS shard as they reach consensus on the final state. More on how these DS shards reach consensus (via pBFT) will be explained later on.
 
The Zilliqa network produces two types of blocks: DS blocks and Tx blocks. One DS Block consists of 100 Tx Blocks. And as previously mentioned there are two types of nodes concerned with reaching consensus: shard nodes and DS nodes. Becoming a shard node or DS node is being defined by the result of a PoW cycle (Ethash) at the beginning of the DS Block. All candidate mining nodes compete with each other and run the PoW (Proof-of-Work) cycle for 60 seconds and the submissions achieving the highest difficulty will be allowed on the network. And to put it in perspective: the average difficulty for one DS node is ~ 2 Th/s equaling 2.000.000 Mh/s or 55 thousand+ GeForce GTX 1070 / 8 GB GPUs at 35.4 Mh/s. Each DS Block 10 new DS nodes are allowed. And a shard node needs to provide around 8.53 GH/s currently (around 240 GTX 1070s). Dual mining ETH/ETC and ZIL is possible and can be done via mining software such as Phoenix and Claymore. There are pools and if you have large amounts of hashing power (Ethash) available you could mine solo.
 
The PoW cycle of 60 seconds is a peak performance and acts as an entry ticket to the network. The entry ticket is called a sybil resistance mechanism and makes it incredibly hard for adversaries to spawn lots of identities and manipulate the network with these identities. And after every 100 Tx Blocks which corresponds to roughly 1,5 hour this PoW process repeats. In between these 1,5 hour, no PoW needs to be done meaning Zilliqa’s energy consumption to keep the network secure is low. For more detailed information on how mining works click here.
Okay, hats off to you. You have made it this far. Before we go any deeper down the rabbit hole we first must understand why Zilliqa goes through all of the above technicalities and understand a bit more what a blockchain on a more fundamental level is. Because the core of Zilliqa’s consensus protocol relies on the usage of pBFT (practical Byzantine Fault Tolerance) we need to know more about state machines and their function. Navigate to Viewblock, a Zilliqa block explorer, and just come back to this article. We will use this site to navigate through a few concepts.
 
We have established that Zilliqa is a public and distributed blockchain. Meaning that everyone with an internet connection can send ZILs, trigger smart contracts, etc. and there is no central authority who fully controls the network. Zilliqa and other public and distributed blockchains (like Bitcoin and Ethereum) can also be defined as state machines.
 
Taking the liberty of paraphrasing examples and definitions given by Samuel Brooks’ medium article, he describes the definition of a blockchain (like Zilliqa) as: “A peer-to-peer, append-only datastore that uses consensus to synchronize cryptographically-secure data”.
 
Next, he states that: "blockchains are fundamentally systems for managing valid state transitions”. For some more context, I recommend reading the whole medium article to get a better grasp of the definitions and understanding of state machines. Nevertheless, let’s try to simplify and compile it into a single paragraph. Take traffic lights as an example: all its states (red, amber, and green) are predefined, all possible outcomes are known and it doesn’t matter if you encounter the traffic light today or tomorrow. It will still behave the same. Managing the states of a traffic light can be done by triggering a sensor on the road or pushing a button resulting in one traffic lights’ state going from green to red (via amber) and another light from red to green.
 
With public blockchains like Zilliqa, this isn’t so straightforward and simple. It started with block #1 almost 1,5 years ago and every 45 seconds or so a new block linked to the previous block is being added. Resulting in a chain of blocks with transactions in it that everyone can verify from block #1 to the current #647.000+ block. The state is ever changing and the states it can find itself in are infinite. And while the traffic light might work together in tandem with various other traffic lights, it’s rather insignificant comparing it to a public blockchain. Because Zilliqa consists of 2400 nodes who need to work together to achieve consensus on what the latest valid state is while some of these nodes may have latency or broadcast issues, drop offline or are deliberately trying to attack the network, etc.
 
Now go back to the Viewblock page take a look at the amount of transaction, addresses, block and DS height and then hit refresh. Obviously as expected you see new incremented values on one or all parameters. And how did the Zilliqa blockchain manage to transition from a previous valid state to the latest valid state? By using pBFT to reach consensus on the latest valid state.
 
After having obtained the entry ticket, miners execute pBFT to reach consensus on the ever-changing state of the blockchain. pBFT requires a series of network communication between nodes, and as such there is no GPU involved (but CPU). Resulting in the total energy consumed to keep the blockchain secure, decentralized and scalable being low.
 
pBFT stands for practical Byzantine Fault Tolerance and is an optimization on the Byzantine Fault Tolerant algorithm. To quote Blockonomi: “In the context of distributed systems, Byzantine Fault Tolerance is the ability of a distributed computer network to function as desired and correctly reach a sufficient consensus despite malicious components (nodes) of the system failing or propagating incorrect information to other peers.” Zilliqa is such a distributed computer network and depends on the honesty of the nodes (shard and DS) to reach consensus and to continuously update the state with the latest block. If pBFT is a new term for you I can highly recommend the Blockonomi article.
 
The idea of pBFT was introduced in 1999 - one of the authors even won a Turing award for it - and it is well researched and applied in various blockchains and distributed systems nowadays. If you want more advanced information than the Blockonomi link provides click here. And if you’re in between Blockonomi and the University of Singapore read the Zilliqa Design Story Part 2 dating from October 2017.
Quoting from the Zilliqa tech whitepaper: “pBFT relies upon a correct leader (which is randomly selected) to begin each phase and proceed when the sufficient majority exists. In case the leader is byzantine it can stall the entire consensus protocol. To address this challenge, pBFT offers a view change protocol to replace the byzantine leader with another one.”
 
pBFT can tolerate ⅓ of the nodes being dishonest (offline counts as Byzantine = dishonest) and the consensus protocol will function without stalling or hiccups. Once there are more than ⅓ of dishonest nodes but no more than ⅔ the network will be stalled and a view change will be triggered to elect a new DS leader. Only when more than ⅔ of the nodes are dishonest (66%) double-spend attacks become possible.
 
If the network stalls no transactions can be processed and one has to wait until a new honest leader has been elected. When the mainnet was just launched and in its early phases, view changes happened regularly. As of today the last stalling of the network - and view change being triggered - was at the end of October 2019.
 
Another benefit of using pBFT for consensus besides low energy is the immediate finality it provides. Once your transaction is included in a block and the block is added to the chain it’s done. Lastly, take a look at this article where three types of finality are being defined: probabilistic, absolute and economic finality. Zilliqa falls under the absolute finality (just like Tendermint for example). Although lengthy already we skipped through some of the inner workings from Zilliqa’s consensus: read the Zilliqa Design Story Part 3 and you will be close to having a complete picture on it. Enough about PoW, sybil resistance mechanism, pBFT, etc. Another thing we haven’t looked at yet is the amount of decentralization.
 
Decentralisation
 
Currently, there are four shards, each one of them consisting of 600 nodes. 1 shard with 600 so-called DS nodes (Directory Service - they need to achieve a higher difficulty than shard nodes) and 1800 shard nodes of which 250 are shard guards (centralized nodes controlled by the team). The amount of shard guards has been steadily declining from 1200 in January 2019 to 250 as of May 2020. On the Viewblock statistics, you can see that many of the nodes are being located in the US but those are only the (CPU parts of the) shard nodes who perform pBFT. There is no data from where the PoW sources are coming. And when the Zilliqa blockchain starts reaching its transaction capacity limit, a network upgrade needs to be executed to lift the current cap of maximum 2400 nodes to allow more nodes and formation of more shards which will allow to network to keep on scaling according to demand.
Besides shard nodes there are also seed nodes. The main role of seed nodes is to serve as direct access points (for end-users and clients) to the core Zilliqa network that validates transactions. Seed nodes consolidate transaction requests and forward these to the lookup nodes (another type of nodes) for distribution to the shards in the network. Seed nodes also maintain the entire transaction history and the global state of the blockchain which is needed to provide services such as block explorers. Seed nodes in the Zilliqa network are comparable to Infura on Ethereum.
 
The seed nodes were first only operated by Zilliqa themselves, exchanges and Viewblock. Operators of seed nodes like exchanges had no incentive to open them for the greater public. They were centralised at first. Decentralisation at the seed nodes level has been steadily rolled out since March 2020 ( Zilliqa Improvement Proposal 3 ). Currently the amount of seed nodes is being increased, they are public-facing and at the same time PoS is applied to incentivize seed node operators and make it possible for ZIL holders to stake and earn passive yields. Important distinction: seed nodes are not involved with consensus! That is still PoW as entry ticket and pBFT for the actual consensus.
 
5% of the block rewards are being assigned to seed nodes (from the beginning in 2019) and those are being used to pay out ZIL stakers. The 5% block rewards with an annual yield of 10.03% translate to roughly 610 MM ZILs in total that can be staked. Exchanges use the custodial variant of staking and wallets like Moonlet will use the non-custodial version (starting in Q3 2020). Staking is being done by sending ZILs to a smart contract created by Zilliqa and audited by Quantstamp.
 
With a high amount of DS; shard nodes and seed nodes becoming more decentralized too, Zilliqa qualifies for the label of decentralized in my opinion.
 
Smart contracts
 
Let me start by saying I’m not a developer and my programming skills are quite limited. So I‘m taking the ELI5 route (maybe 12) but if you are familiar with Javascript, Solidity or specifically OCaml please head straight to Scilla - read the docs to get a good initial grasp of how Zilliqa’s smart contract language Scilla works and if you ask yourself “why another programming language?” check this article. And if you want to play around with some sample contracts in an IDE click here. The faucet can be found here. And more information on architecture, dapp development and API can be found on the Developer Portal.
If you are more into listening and watching: check this recent webinar explaining Zilliqa and Scilla. Link is time-stamped so you’ll start right away with a platform introduction, roadmap 2020 and afterwards a proper Scilla introduction.
 
Generalized: programming languages can be divided into being ‘object-oriented’ or ‘functional’. Here is an ELI5 given by software development academy: * “all programs have two basic components, data – what the program knows – and behavior – what the program can do with that data. So object-oriented programming states that combining data and related behaviors in one place, is called “object”, which makes it easier to understand how a particular program works. On the other hand, functional programming argues that data and behavior are different things and should be separated to ensure their clarity.” *
 
Scilla is on the functional side and shares similarities with OCaml: OCaml is a general-purpose programming language with an emphasis on expressiveness and safety. It has an advanced type system that helps catch your mistakes without getting in your way. It's used in environments where a single mistake can cost millions and speed matters, is supported by an active community, and has a rich set of libraries and development tools. For all its power, OCaml is also pretty simple, which is one reason it's often used as a teaching language.
 
Scilla is blockchain agnostic, can be implemented onto other blockchains as well, is recognized by academics and won a so-called Distinguished Artifact Award award at the end of last year.
 
One of the reasons why the Zilliqa team decided to create their own programming language focused on preventing smart contract vulnerabilities is that adding logic on a blockchain, programming, means that you cannot afford to make mistakes. Otherwise, it could cost you. It’s all great and fun blockchains being immutable but updating your code because you found a bug isn’t the same as with a regular web application for example. And with smart contracts, it inherently involves cryptocurrencies in some form thus value.
 
Another difference with programming languages on a blockchain is gas. Every transaction you do on a smart contract platform like Zilliqa or Ethereum costs gas. With gas you basically pay for computational costs. Sending a ZIL from address A to address B costs 0.001 ZIL currently. Smart contracts are more complex, often involve various functions and require more gas (if gas is a new concept click here ).
 
So with Scilla, similar to Solidity, you need to make sure that “every function in your smart contract will run as expected without hitting gas limits. An improper resource analysis may lead to situations where funds may get stuck simply because a part of the smart contract code cannot be executed due to gas limits. Such constraints are not present in traditional software systems”. Scilla design story part 1
 
Some examples of smart contract issues you’d want to avoid are: leaking funds, ‘unexpected changes to critical state variables’ (example: someone other than you setting his or her address as the owner of the smart contract after creation) or simply killing a contract.
 
Scilla also allows for formal verification. Wikipedia to the rescue: In the context of hardware and software systems, formal verification is the act of proving or disproving the correctness of intended algorithms underlying a system with respect to a certain formal specification or property, using formal methods of mathematics.
 
Formal verification can be helpful in proving the correctness of systems such as: cryptographic protocols, combinational circuits, digital circuits with internal memory, and software expressed as source code.
 
Scilla is being developed hand-in-hand with formalization of its semantics and its embedding into the Coq proof assistant — a state-of-the art tool for mechanized proofs about properties of programs.”
 
Simply put, with Scilla and accompanying tooling developers can be mathematically sure and proof that the smart contract they’ve written does what he or she intends it to do.
 
Smart contract on a sharded environment and state sharding
 
There is one more topic I’d like to touch on: smart contract execution in a sharded environment (and what is the effect of state sharding). This is a complex topic. I’m not able to explain it any easier than what is posted here. But I will try to compress the post into something easy to digest.
 
Earlier on we have established that Zilliqa can process transactions in parallel due to network sharding. This is where the linear scalability comes from. We can define simple transactions: a transaction from address A to B (Category 1), a transaction where a user interacts with one smart contract (Category 2) and the most complex ones where triggering a transaction results in multiple smart contracts being involved (Category 3). The shards are able to process transactions on their own without interference of the other shards. With Category 1 transactions that is doable, with Category 2 transactions sometimes if that address is in the same shard as the smart contract but with Category 3 you definitely need communication between the shards. Solving that requires to make a set of communication rules the protocol needs to follow in order to process all transactions in a generalised fashion.
 
And this is where the downsides of state sharding comes in currently. All shards in Zilliqa have access to the complete state. Yes the state size (0.1 GB at the moment) grows and all of the nodes need to store it but it also means that they don’t need to shop around for information available on other shards. Requiring more communication and adding more complexity. Computer science knowledge and/or developer knowledge required links if you want to dig further: Scilla - language grammar Scilla - Foundations for Verifiable Decentralised Computations on a Blockchain Gas Accounting NUS x Zilliqa: Smart contract language workshop
 
Easier to follow links on programming Scilla https://learnscilla.com/home Ivan on Tech
 
Roadmap / Zilliqa 2.0
 
There is no strict defined roadmap but here are topics being worked on. And via the Zilliqa website there is also more information on the projects they are working on.
 
Business & Partnerships
 
It’s not only technology in which Zilliqa seems to be excelling as their ecosystem has been expanding and starting to grow rapidly. The project is on a mission to provide OpenFinance (OpFi) to the world and Singapore is the right place to be due to its progressive regulations and futuristic thinking. Singapore has taken a proactive approach towards cryptocurrencies by introducing the Payment Services Act 2019 (PS Act). Among other things, the PS Act will regulate intermediaries dealing with certain cryptocurrencies, with a particular focus on consumer protection and anti-money laundering. It will also provide a stable regulatory licensing and operating framework for cryptocurrency entities, effectively covering all crypto businesses and exchanges based in Singapore. According to PWC 82% of the surveyed executives in Singapore reported blockchain initiatives underway and 13% of them have already brought the initiatives live to the market. There is also an increasing list of organizations that are starting to provide digital payment services. Moreover, Singaporean blockchain developers Building Cities Beyond has recently created an innovation $15 million grant to encourage development on its ecosystem. This all suggests that Singapore tries to position itself as (one of) the leading blockchain hubs in the world.
 
Zilliqa seems to already take advantage of this and recently helped launch Hg Exchange on their platform, together with financial institutions PhillipCapital, PrimePartners and Fundnel. Hg Exchange, which is now approved by the Monetary Authority of Singapore (MAS), uses smart contracts to represent digital assets. Through Hg Exchange financial institutions worldwide can use Zilliqa's safe-by-design smart contracts to enable the trading of private equities. For example, think of companies such as Grab, Airbnb, SpaceX that are not available for public trading right now. Hg Exchange will allow investors to buy shares of private companies & unicorns and capture their value before an IPO. Anquan, the main company behind Zilliqa, has also recently announced that they became a partner and shareholder in TEN31 Bank, which is a fully regulated bank allowing for tokenization of assets and is aiming to bridge the gap between conventional banking and the blockchain world. If STOs, the tokenization of assets, and equity trading will continue to increase, then Zilliqa’s public blockchain would be the ideal candidate due to its strategic positioning, partnerships, regulatory compliance and the technology that is being built on top of it.
 
What is also very encouraging is their focus on banking the un(der)banked. They are launching a stablecoin basket starting with XSGD. As many of you know, stablecoins are currently mostly used for trading. However, Zilliqa is actively trying to broaden the use case of stablecoins. I recommend everybody to read this text that Amrit Kumar wrote (one of the co-founders). These stablecoins will be integrated in the traditional markets and bridge the gap between the crypto world and the traditional world. This could potentially revolutionize and legitimise the crypto space if retailers and companies will for example start to use stablecoins for payments or remittances, instead of it solely being used for trading.
 
Zilliqa also released their DeFi strategic roadmap (dating November 2019) which seems to be aligning well with their OpFi strategy. A non-custodial DEX is coming to Zilliqa made by Switcheo which allows cross-chain trading (atomic swaps) between ETH, EOS and ZIL based tokens. They also signed a Memorandum of Understanding for a (soon to be announced) USD stablecoin. And as Zilliqa is all about regulations and being compliant, I’m speculating on it to be a regulated USD stablecoin. Furthermore, XSGD is already created and visible on block explorer and XIDR (Indonesian Stablecoin) is also coming soon via StraitsX. Here also an overview of the Tech Stack for Financial Applications from September 2019. Further quoting Amrit Kumar on this:
 
There are two basic building blocks in DeFi/OpFi though: 1) stablecoins as you need a non-volatile currency to get access to this market and 2) a dex to be able to trade all these financial assets. The rest are built on top of these blocks.
 
So far, together with our partners and community, we have worked on developing these building blocks with XSGD as a stablecoin. We are working on bringing a USD-backed stablecoin as well. We will soon have a decentralised exchange developed by Switcheo. And with HGX going live, we are also venturing into the tokenization space. More to come in the future.”
 
Additionally, they also have this ZILHive initiative that injects capital into projects. There have been already 6 waves of various teams working on infrastructure, innovation and research, and they are not from ASEAN or Singapore only but global: see Grantees breakdown by country. Over 60 project teams from over 20 countries have contributed to Zilliqa's ecosystem. This includes individuals and teams developing wallets, explorers, developer toolkits, smart contract testing frameworks, dapps, etc. As some of you may know, Unstoppable Domains (UD) blew up when they launched on Zilliqa. UD aims to replace cryptocurrency addresses with a human-readable name and allows for uncensorable websites. Zilliqa will probably be the only one able to handle all these transactions onchain due to ability to scale and its resulting low fees which is why the UD team launched this on Zilliqa in the first place. Furthermore, Zilliqa also has a strong emphasis on security, compliance, and privacy, which is why they partnered with companies like Elliptic, ChainSecurity (part of PwC Switzerland), and Incognito. Their sister company Aqilliz (Zilliqa spelled backwards) focuses on revolutionizing the digital advertising space and is doing interesting things like using Zilliqa to track outdoor digital ads with companies like Foodpanda.
 
Zilliqa is listed on nearly all major exchanges, having several different fiat-gateways and recently have been added to Binance’s margin trading and futures trading with really good volume. They also have a very impressive team with good credentials and experience. They don't just have “tech people”. They have a mix of tech people, business people, marketeers, scientists, and more. Naturally, it's good to have a mix of people with different skill sets if you work in the crypto space.
 
Marketing & Community
 
Zilliqa has a very strong community. If you just follow their Twitter their engagement is much higher for a coin that has approximately 80k followers. They also have been ‘coin of the day’ by LunarCrush many times. LunarCrush tracks real-time cryptocurrency value and social data. According to their data, it seems Zilliqa has a more fundamental and deeper understanding of marketing and community engagement than almost all other coins. While almost all coins have been a bit frozen in the last months, Zilliqa seems to be on its own bull run. It was somewhere in the 100s a few months ago and is currently ranked #46 on CoinGecko. Their official Telegram also has over 20k people and is very active, and their community channel which is over 7k now is more active and larger than many other official channels. Their local communities also seem to be growing.
 
Moreover, their community started ‘Zillacracy’ together with the Zilliqa core team ( see www.zillacracy.com ). It’s a community-run initiative where people from all over the world are now helping with marketing and development on Zilliqa. Since its launch in February 2020 they have been doing a lot and will also run their own non-custodial seed node for staking. This seed node will also allow them to start generating revenue for them to become a self sustaining entity that could potentially scale up to become a decentralized company working in parallel with the Zilliqa core team. Comparing it to all the other smart contract platforms (e.g. Cardano, EOS, Tezos etc.) they don't seem to have started a similar initiative (correct me if I’m wrong though). This suggests in my opinion that these other smart contract platforms do not fully understand how to utilize the ‘power of the community’. This is something you cannot ‘buy with money’ and gives many projects in the space a disadvantage.
 
Zilliqa also released two social products called SocialPay and Zeeves. SocialPay allows users to earn ZILs while tweeting with a specific hashtag. They have recently used it in partnership with the Singapore Red Cross for a marketing campaign after their initial pilot program. It seems like a very valuable social product with a good use case. I can see a lot of traditional companies entering the space through this product, which they seem to suggest will happen. Tokenizing hashtags with smart contracts to get network effect is a very smart and innovative idea.
 
Regarding Zeeves, this is a tipping bot for Telegram. They already have 1000s of signups and they plan to keep upgrading it for more and more people to use it (e.g. they recently have added a quiz features). They also use it during AMAs to reward people in real-time. It’s a very smart approach to grow their communities and get familiar with ZIL. I can see this becoming very big on Telegram. This tool suggests, again, that the Zilliqa team has a deeper understanding of what the crypto space and community needs and is good at finding the right innovative tools to grow and scale.
 
To be honest, I haven’t covered everything (i’m also reaching the character limited haha). So many updates happening lately that it's hard to keep up, such as the International Monetary Fund mentioning Zilliqa in their report, custodial and non-custodial Staking, Binance Margin, Futures, Widget, entering the Indian market, and more. The Head of Marketing Colin Miles has also released this as an overview of what is coming next. And last but not least, Vitalik Buterin has been mentioning Zilliqa lately acknowledging Zilliqa and mentioning that both projects have a lot of room to grow. There is much more info of course and a good part of it has been served to you on a silver platter. I invite you to continue researching by yourself :-) And if you have any comments or questions please post here!
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Why i’m bullish on Zilliqa (long read)

Hey all, I've been researching coins since 2017 and have gone through 100s of them in the last 3 years. I got introduced to blockchain via Bitcoin of course, analysed Ethereum thereafter and from that moment I have a keen interest in smart contact platforms. I’m passionate about Ethereum but I find Zilliqa to have a better risk reward ratio. Especially because Zilliqa has found an elegant balance between being secure, decentralised and scalable in my opinion.
 
Below I post my analysis why from all the coins I went through I’m most bullish on Zilliqa (yes I went through Tezos, EOS, NEO, VeChain, Harmony, Algorand, Cardano etc.). Note that this is not investment advice and although it's a thorough analysis there is obviously some bias involved. Looking forward to what you all think!
 
Fun fact: the name Zilliqa is a play on ‘silica’ silicon dioxide which means “Silicon for the high-throughput consensus computer.”
 
This post is divided into (i) Technology, (ii) Business & Partnerships, and (iii) Marketing & Community. I’ve tried to make the technology part readable for a broad audience. If you’ve ever tried understanding the inner workings of Bitcoin and Ethereum you should be able to grasp most parts. Otherwise just skim through and once you are zoning out head to the next part.
 
Technology and some more:
 
Introduction The technology is one of the main reasons why I’m so bullish on Zilliqa. First thing you see on their website is: “Zilliqa is a high-performance, high-security blockchain platform for enterprises and next-generation applications.” These are some bold statements.
 
Before we deep dive into the technology let’s take a step back in time first as they have quite the history. The initial research paper from which Zilliqa originated dates back to August 2016: Elastico: A Secure Sharding Protocol For Open Blockchains where Loi Luu (Kyber Network) is one of the co-authors. Other ideas that led to the development of what Zilliqa has become today are: Bitcoin-NG, collective signing CoSi, ByzCoin and Omniledger.
 
The technical white paper was made public in August 2017 and since then they have achieved everything stated in the white paper and also created their own open source intermediate level smart contract language called Scilla (functional programming language similar to OCaml) too.
 
Mainnet is live since end of January 2019 with daily transaction rate growing continuously. About a week ago mainnet reached 5 million transactions, 500.000+ addresses in total along with 2400 nodes keeping the network decentralised and secure. Circulating supply is nearing 11 billion and currently only mining rewards are left. Maximum supply is 21 billion with annual inflation being 7.13% currently and will only decrease with time.
 
Zilliqa realised early on that the usage of public cryptocurrencies and smart contracts were increasing but decentralised, secure and scalable alternatives were lacking in the crypto space. They proposed to apply sharding onto a public smart contract blockchain where the transaction rate increases almost linear with the increase in amount of nodes. More nodes = higher transaction throughput and increased decentralisation. Sharding comes in many forms and Zilliqa uses network-, transaction- and computational sharding. Network sharding opens up the possibility of using transaction- and computational sharding on top. Zilliqa does not use state sharding for now. We’ll come back to this later.
 
Before we continue disecting how Zilliqa achieves such from a technological standpoint it’s good to keep in mind that a blockchain being decentralised and secure and scalable is still one of the main hurdles in allowing widespread usage of decentralised networks. In my opinion this needs to be solved first before blockchains can get to the point where they can create and add large scale value. So I invite you to read the next section to grasp the underlying fundamentals. Because after all these premises need to be true otherwise there isn’t a fundamental case to be bullish on Zilliqa, right?
 
Down the rabbit hole
 
How have they achieved this? Let’s define the basics first: key players on Zilliqa are the users and the miners. A user is anybody who uses the blockchain to transfer funds or run smart contracts. Miners are the (shard) nodes in the network who run the consensus protocol and get rewarded for their service in Zillings (ZIL). The mining network is divided into several smaller networks called shards, which is also referred to as ‘network sharding’. Miners subsequently are randomly assigned to a shard by another set of miners called DS (Directory Service) nodes. The regular shards process transactions and the outputs of these shards are eventually combined by the DS shard as they reach consensus on the final state. More on how these DS shards reach consensus (via pBFT) will be explained later on.
 
The Zilliqa network produces two types of blocks: DS blocks and Tx blocks. One DS Block consists of 100 Tx Blocks. And as previously mentioned there are two types of nodes concerned with reaching consensus: shard nodes and DS nodes. Becoming a shard node or DS node is being defined by the result of a PoW cycle (Ethash) at the beginning of the DS Block. All candidate mining nodes compete with each other and run the PoW (Proof-of-Work) cycle for 60 seconds and the submissions achieving the highest difficulty will be allowed on the network. And to put it in perspective: the average difficulty for one DS node is ~ 2 Th/s equaling 2.000.000 Mh/s or 55 thousand+ GeForce GTX 1070 / 8 GB GPUs at 35.4 Mh/s. Each DS Block 10 new DS nodes are allowed. And a shard node needs to provide around 8.53 GH/s currently (around 240 GTX 1070s). Dual mining ETH/ETC and ZIL is possible and can be done via mining software such as Phoenix and Claymore. There are pools and if you have large amounts of hashing power (Ethash) available you could mine solo.
 
The PoW cycle of 60 seconds is a peak performance and acts as an entry ticket to the network. The entry ticket is called a sybil resistance mechanism and makes it incredibly hard for adversaries to spawn lots of identities and manipulate the network with these identities. And after every 100 Tx Blocks which corresponds to roughly 1,5 hour this PoW process repeats. In between these 1,5 hour no PoW needs to be done meaning Zilliqa’s energy consumption to keep the network secure is low. For more detailed information on how mining works click here.
Okay, hats off to you. You have made it this far. Before we go any deeper down the rabbit hole we first must understand why Zilliqa goes through all of the above technicalities and understand a bit more what a blockchain on a more fundamental level is. Because the core of Zilliqa’s consensus protocol relies on the usage of pBFT (practical Byzantine Fault Tolerance) we need to know more about state machines and their function. Navigate to Viewblock, a Zilliqa block explorer, and just come back to this article. We will use this site to navigate through a few concepts.
 
We have established that Zilliqa is a public and distributed blockchain. Meaning that everyone with an internet connection can send ZILs, trigger smart contracts etc. and there is no central authority who fully controls the network. Zilliqa and other public and distributed blockchains (like Bitcoin and Ethereum) can also be defined as state machines.
 
Taking the liberty of paraphrasing examples and definitions given by Samuel Brooks’ medium article, he describes the definition of a blockchain (like Zilliqa) as:
“A peer-to-peer, append-only datastore that uses consensus to synchronise cryptographically-secure data”.
 
Next he states that: >“blockchains are fundamentally systems for managing valid state transitions”.* For some more context, I recommend reading the whole medium article to get a better grasp of the definitions and understanding of state machines. Nevertheless, let’s try to simplify and compile it into a single paragraph. Take traffic lights as an example: all its states (red, amber and green) are predefined, all possible outcomes are known and it doesn’t matter if you encounter the traffic light today or tomorrow. It will still behave the same. Managing the states of a traffic light can be done by triggering a sensor on the road or pushing a button resulting in one traffic lights’ state going from green to red (via amber) and another light from red to green.
 
With public blockchains like Zilliqa this isn’t so straightforward and simple. It started with block #1 almost 1,5 years ago and every 45 seconds or so a new block linked to the previous block is being added. Resulting in a chain of blocks with transactions in it that everyone can verify from block #1 to the current #647.000+ block. The state is ever changing and the states it can find itself in are infinite. And while the traffic light might work together in tandem with various other traffic lights, it’s rather insignificant comparing it to a public blockchain. Because Zilliqa consists of 2400 nodes who need to work together to achieve consensus on what the latest valid state is while some of these nodes may have latency or broadcast issues, drop offline or are deliberately trying to attack the network etc.
 
Now go back to the Viewblock page take a look at the amount of transaction, addresses, block and DS height and then hit refresh. Obviously as expected you see new incremented values on one or all parameters. And how did the Zilliqa blockchain manage to transition from a previous valid state to the latest valid state? By using pBFT to reach consensus on the latest valid state.
 
After having obtained the entry ticket, miners execute pBFT to reach consensus on the ever changing state of the blockchain. pBFT requires a series of network communication between nodes, and as such there is no GPU involved (but CPU). Resulting in the total energy consumed to keep the blockchain secure, decentralised and scalable being low.
 
pBFT stands for practical Byzantine Fault Tolerance and is an optimisation on the Byzantine Fault Tolerant algorithm. To quote Blockonomi: “In the context of distributed systems, Byzantine Fault Tolerance is the ability of a distributed computer network to function as desired and correctly reach a sufficient consensus despite malicious components (nodes) of the system failing or propagating incorrect information to other peers.” Zilliqa is such a distributed computer network and depends on the honesty of the nodes (shard and DS) to reach consensus and to continuously update the state with the latest block. If pBFT is a new term for you I can highly recommend the Blockonomi article.
 
The idea of pBFT was introduced in 1999 - one of the authors even won a Turing award for it - and it is well researched and applied in various blockchains and distributed systems nowadays. If you want more advanced information than the Blockonomi link provides click here. And if you’re in between Blockonomi and University of Singapore read the Zilliqa Design Story Part 2 dating from October 2017.
Quoting from the Zilliqa tech whitepaper: “pBFT relies upon a correct leader (which is randomly selected) to begin each phase and proceed when the sufficient majority exists. In case the leader is byzantine it can stall the entire consensus protocol. To address this challenge, pBFT offers a view change protocol to replace the byzantine leader with another one.”
 
pBFT can tolerate ⅓ of the nodes being dishonest (offline counts as Byzantine = dishonest) and the consensus protocol will function without stalling or hiccups. Once there are more than ⅓ of dishonest nodes but no more than ⅔ the network will be stalled and a view change will be triggered to elect a new DS leader. Only when more than ⅔ of the nodes are dishonest (>66%) double spend attacks become possible.
 
If the network stalls no transactions can be processed and one has to wait until a new honest leader has been elected. When the mainnet was just launched and in its early phases, view changes happened regularly. As of today the last stalling of the network - and view change being triggered - was at the end of October 2019.
 
Another benefit of using pBFT for consensus besides low energy is the immediate finality it provides. Once your transaction is included in a block and the block is added to the chain it’s done. Lastly, take a look at this article where three types of finality are being defined: probabilistic, absolute and economic finality. Zilliqa falls under the absolute finality (just like Tendermint for example). Although lengthy already we skipped through some of the inner workings from Zilliqa’s consensus: read the Zilliqa Design Story Part 3 and you will be close to having a complete picture on it. Enough about PoW, sybil resistance mechanism, pBFT etc. Another thing we haven’t looked at yet is the amount of decentralisation.
 
Decentralisation
 
Currently there are four shards, each one of them consisting of 600 nodes. 1 shard with 600 so called DS nodes (Directory Service - they need to achieve a higher difficulty than shard nodes) and 1800 shard nodes of which 250 are shard guards (centralised nodes controlled by the team). The amount of shard guards has been steadily declining from 1200 in January 2019 to 250 as of May 2020. On the Viewblock statistics you can see that many of the nodes are being located in the US but those are only the (CPU parts of the) shard nodes who perform pBFT. There is no data from where the PoW sources are coming. And when the Zilliqa blockchain starts reaching their transaction capacity limit, a network upgrade needs to be executed to lift the current cap of maximum 2400 nodes to allow more nodes and formation of more shards which will allow to network to keep on scaling according to demand.
Besides shard nodes there are also seed nodes. The main role of seed nodes is to serve as direct access points (for end users and clients) to the core Zilliqa network that validates transactions. Seed nodes consolidate transaction requests and forward these to the lookup nodes (another type of nodes) for distribution to the shards in the network. Seed nodes also maintain the entire transaction history and the global state of the blockchain which is needed to provide services such as block explorers. Seed nodes in the Zilliqa network are comparable to Infura on Ethereum.
 
The seed nodes were first only operated by Zilliqa themselves, exchanges and Viewblock. Operators of seed nodes like exchanges had no incentive to open them for the greater public.They were centralised at first. Decentralisation at the seed nodes level has been steadily rolled out since March 2020 ( Zilliqa Improvement Proposal 3 ). Currently the amount of seed nodes is being increased, they are public facing and at the same time PoS is applied to incentivize seed node operators and make it possible for ZIL holders to stake and earn passive yields. Important distinction: seed nodes are not involved with consensus! That is still PoW as entry ticket and pBFT for the actual consensus.
 
5% of the block rewards are being assigned to seed nodes (from the beginning in 2019) and those are being used to pay out ZIL stakers.The 5% block rewards with an annual yield of 10.03% translates to roughly 610 MM ZILs in total that can be staked. Exchanges use the custodial variant of staking and wallets like Moonlet will use the non custodial version (starting in Q3 2020). Staking is being done by sending ZILs to a smart contract created by Zilliqa and audited by Quantstamp.
 
With a high amount of DS & shard nodes and seed nodes becoming more decentralised too, Zilliqa qualifies for the label of decentralised in my opinion.
 
Smart contracts
 
Let me start by saying I’m not a developer and my programming skills are quite limited. So I‘m taking the ELI5 route (maybe 12) but if you are familiar with Javascript, Solidity or specifically OCaml please head straight to Scilla - read the docs to get a good initial grasp of how Zilliqa’s smart contract language Scilla works and if you ask yourself “why another programming language?” check this article. And if you want to play around with some sample contracts in an IDE click here. Faucet can be found here. And more information on architecture, dapp development and API can be found on the Developer Portal.
If you are more into listening and watching: check this recent webinar explaining Zilliqa and Scilla. Link is time stamped so you’ll start right away with a platform introduction, R&D roadmap 2020 and afterwards a proper Scilla introduction.
 
Generalised: programming languages can be divided into being ‘object oriented’ or ‘functional’. Here is an ELI5 given by software development academy: > “all programmes have two basic components, data – what the programme knows – and behaviour – what the programme can do with that data. So object-oriented programming states that combining data and related behaviours in one place, is called “object”, which makes it easier to understand how a particular program works. On the other hand, functional programming argues that data and behaviour are different things and should be separated to ensure their clarity.”
 
Scilla is on the functional side and shares similarities with OCaml: > OCaml is a general purpose programming language with an emphasis on expressiveness and safety. It has an advanced type system that helps catch your mistakes without getting in your way. It's used in environments where a single mistake can cost millions and speed matters, is supported by an active community, and has a rich set of libraries and development tools. For all its power, OCaml is also pretty simple, which is one reason it's often used as a teaching language.
 
Scilla is blockchain agnostic, can be implemented onto other blockchains as well, is recognised by academics and won a so called Distinguished Artifact Award award at the end of last year.
 
One of the reasons why the Zilliqa team decided to create their own programming language focused on preventing smart contract vulnerabilities safety is that adding logic on a blockchain, programming, means that you cannot afford to make mistakes. Otherwise it could cost you. It’s all great and fun blockchains being immutable but updating your code because you found a bug isn’t the same as with a regular web application for example. And with smart contracts it inherently involves cryptocurrencies in some form thus value.
 
Another difference with programming languages on a blockchain is gas. Every transaction you do on a smart contract platform like Zilliqa for Ethereum costs gas. With gas you basically pay for computational costs. Sending a ZIL from address A to address B costs 0.001 ZIL currently. Smart contracts are more complex, often involve various functions and require more gas (if gas is a new concept click here ).
 
So with Scilla, similar to Solidity, you need to make sure that “every function in your smart contract will run as expected without hitting gas limits. An improper resource analysis may lead to situations where funds may get stuck simply because a part of the smart contract code cannot be executed due to gas limits. Such constraints are not present in traditional software systems”. Scilla design story part 1
 
Some examples of smart contract issues you’d want to avoid are: leaking funds, ‘unexpected changes to critical state variables’ (example: someone other than you setting his or her address as the owner of the smart contract after creation) or simply killing a contract.
 
Scilla also allows for formal verification. Wikipedia to the rescue:
In the context of hardware and software systems, formal verification is the act of proving or disproving the correctness of intended algorithms underlying a system with respect to a certain formal specification or property, using formal methods of mathematics.
 
Formal verification can be helpful in proving the correctness of systems such as: cryptographic protocols, combinational circuits, digital circuits with internal memory, and software expressed as source code.
 
Scilla is being developed hand-in-hand with formalization of its semantics and its embedding into the Coq proof assistant — a state-of-the art tool for mechanized proofs about properties of programs.”
 
Simply put, with Scilla and accompanying tooling developers can be mathematically sure and proof that the smart contract they’ve written does what he or she intends it to do.
 
Smart contract on a sharded environment and state sharding
 
There is one more topic I’d like to touch on: smart contract execution in a sharded environment (and what is the effect of state sharding). This is a complex topic. I’m not able to explain it any easier than what is posted here. But I will try to compress the post into something easy to digest.
 
Earlier on we have established that Zilliqa can process transactions in parallel due to network sharding. This is where the linear scalability comes from. We can define simple transactions: a transaction from address A to B (Category 1), a transaction where a user interacts with one smart contract (Category 2) and the most complex ones where triggering a transaction results in multiple smart contracts being involved (Category 3). The shards are able to process transactions on their own without interference of the other shards. With Category 1 transactions that is doable, with Category 2 transactions sometimes if that address is in the same shard as the smart contract but with Category 3 you definitely need communication between the shards. Solving that requires to make a set of communication rules the protocol needs to follow in order to process all transactions in a generalised fashion.
 
And this is where the downsides of state sharding comes in currently. All shards in Zilliqa have access to the complete state. Yes the state size (0.1 GB at the moment) grows and all of the nodes need to store it but it also means that they don’t need to shop around for information available on other shards. Requiring more communication and adding more complexity. Computer science knowledge and/or developer knowledge required links if you want to dig further: Scilla - language grammar Scilla - Foundations for Verifiable Decentralised Computations on a Blockchain Gas Accounting NUS x Zilliqa: Smart contract language workshop
 
Easier to follow links on programming Scilla https://learnscilla.com/home Ivan on Tech
 
Roadmap / Zilliqa 2.0
 
There is no strict defined roadmap but here are topics being worked on. And via the Zilliqa website there is also more information on the projects they are working on.
 
Business & Partnerships  
It’s not only technology in which Zilliqa seems to be excelling as their ecosystem has been expanding and starting to grow rapidly. The project is on a mission to provide OpenFinance (OpFi) to the world and Singapore is the right place to be due to its progressive regulations and futuristic thinking. Singapore has taken a proactive approach towards cryptocurrencies by introducing the Payment Services Act 2019 (PS Act). Among other things, the PS Act will regulate intermediaries dealing with certain cryptocurrencies, with a particular focus on consumer protection and anti-money laundering. It will also provide a stable regulatory licensing and operating framework for cryptocurrency entities, effectively covering all crypto businesses and exchanges based in Singapore. According to PWC 82% of the surveyed executives in Singapore reported blockchain initiatives underway and 13% of them have already brought the initiatives live to the market. There is also an increasing list of organisations that are starting to provide digital payment services. Moreover, Singaporean blockchain developers Building Cities Beyond has recently created an innovation $15 million grant to encourage development on its ecosystem. This all suggest that Singapore tries to position itself as (one of) the leading blockchain hubs in the world.
 
Zilliqa seems to already taking advantage of this and recently helped launch Hg Exchange on their platform, together with financial institutions PhillipCapital, PrimePartners and Fundnel. Hg Exchange, which is now approved by the Monetary Authority of Singapore (MAS), uses smart contracts to represent digital assets. Through Hg Exchange financial institutions worldwide can use Zilliqa's safe-by-design smart contracts to enable the trading of private equities. For example, think of companies such as Grab, AirBnB, SpaceX that are not available for public trading right now. Hg Exchange will allow investors to buy shares of private companies & unicorns and capture their value before an IPO. Anquan, the main company behind Zilliqa, has also recently announced that they became a partner and shareholder in TEN31 Bank, which is a fully regulated bank allowing for tokenization of assets and is aiming to bridge the gap between conventional banking and the blockchain world. If STOs, the tokenization of assets, and equity trading will continue to increase, then Zilliqa’s public blockchain would be the ideal candidate due to its strategic positioning, partnerships, regulatory compliance and the technology that is being built on top of it.
 
What is also very encouraging is their focus on banking the un(der)banked. They are launching a stablecoin basket starting with XSGD. As many of you know, stablecoins are currently mostly used for trading. However, Zilliqa is actively trying to broaden the use case of stablecoins. I recommend everybody to read this text that Amrit Kumar wrote (one of the co-founders). These stablecoins will be integrated in the traditional markets and bridge the gap between the crypto world and the traditional world. This could potentially revolutionize and legitimise the crypto space if retailers and companies will for example start to use stablecoins for payments or remittances, instead of it solely being used for trading.
 
Zilliqa also released their DeFi strategic roadmap (dating November 2019) which seems to be aligning well with their OpFi strategy. A non-custodial DEX is coming to Zilliqa made by Switcheo which allows cross-chain trading (atomic swaps) between ETH, EOS and ZIL based tokens. They also signed a Memorandum of Understanding for a (soon to be announced) USD stablecoin. And as Zilliqa is all about regulations and being compliant, I’m speculating on it to be a regulated USD stablecoin. Furthermore, XSGD is already created and visible on block explorer and XIDR (Indonesian Stablecoin) is also coming soon via StraitsX. Here also an overview of the Tech Stack for Financial Applications from September 2019. Further quoting Amrit Kumar on this:
 
There are two basic building blocks in DeFi/OpFi though: 1) stablecoins as you need a non-volatile currency to get access to this market and 2) a dex to be able to trade all these financial assets. The rest are build on top of these blocks.
 
So far, together with our partners and community, we have worked on developing these building blocks with XSGD as a stablecoin. We are working on bringing a USD-backed stablecoin as well. We will soon have a decentralised exchange developed by Switcheo. And with HGX going live, we are also venturing into the tokenization space. More to come in the future.”*
 
Additionally, they also have this ZILHive initiative that injects capital into projects. There have been already 6 waves of various teams working on infrastructure, innovation and research, and they are not from ASEAN or Singapore only but global: see Grantees breakdown by country. Over 60 project teams from over 20 countries have contributed to Zilliqa's ecosystem. This includes individuals and teams developing wallets, explorers, developer toolkits, smart contract testing frameworks, dapps, etc. As some of you may know, Unstoppable Domains (UD) blew up when they launched on Zilliqa. UD aims to replace cryptocurrency addresses with a human readable name and allows for uncensorable websites. Zilliqa will probably be the only one able to handle all these transactions onchain due to ability to scale and its resulting low fees which is why the UD team launched this on Zilliqa in the first place. Furthermore, Zilliqa also has a strong emphasis on security, compliance, and privacy, which is why they partnered with companies like Elliptic, ChainSecurity (part of PwC Switzerland), and Incognito. Their sister company Aqilliz (Zilliqa spelled backwards) focuses on revolutionizing the digital advertising space and is doing interesting things like using Zilliqa to track outdoor digital ads with companies like Foodpanda.
 
Zilliqa is listed on nearly all major exchanges, having several different fiat-gateways and recently have been added to Binance’s margin trading and futures trading with really good volume. They also have a very impressive team with good credentials and experience. They dont just have “tech people”. They have a mix of tech people, business people, marketeers, scientists, and more. Naturally, it's good to have a mix of people with different skill sets if you work in the crypto space.
 
Marketing & Community
 
Zilliqa has a very strong community. If you just follow their Twitter their engagement is much higher for a coin that has approximately 80k followers. They also have been ‘coin of the day’ by LunarCrush many times. LunarCrush tracks real-time cryptocurrency value and social data. According to their data it seems Zilliqa has a more fundamental and deeper understanding of marketing and community engagement than almost all other coins. While almost all coins have been a bit frozen in the last months, Zilliqa seems to be on its own bull run. It was somewhere in the 100s a few months ago and is currently ranked #46 on CoinGecko. Their official Telegram also has over 20k people and is very active, and their community channel which is over 7k now is more active and larger than many other official channels. Their local communities) also seem to be growing.
 
Moreover, their community started ‘Zillacracy’ together with the Zilliqa core team ( see www.zillacracy.com ). It’s a community run initiative where people from all over the world are now helping with marketing and development on Zilliqa. Since its launch in February 2020 they have been doing a lot and will also run their own non custodial seed node for staking. This seed node will also allow them to start generating revenue for them to become a self sustaining entity that could potentially scale up to become a decentralized company working in parallel with the Zilliqa core team. Comparing it to all the other smart contract platforms (e.g. Cardano, EOS, Tezos etc.) they don't seem to have started a similar initiatives (correct me if I’m wrong though). This suggest in my opinion that these other smart contract platforms do not fully understand how to utilize the ‘power of the community’. This is something you cannot ‘buy with money’ and gives many projects in the space a disadvantage.
 
Zilliqa also released two social products called SocialPay and Zeeves. SocialPay allows users to earn ZILs while tweeting with a specific hashtag. They have recently used it in partnership with the Singapore Red Cross for a marketing campaign after their initial pilot program. It seems like a very valuable social product with a good use case. I can see a lot of traditional companies entering the space through this product, which they seem to suggest will happen. Tokenizing hashtags with smart contracts to get network effect is a very smart and innovative idea.
 
Regarding Zeeves, this is a tipping bot for Telegram. They already have 1000s of signups and they plan to keep upgrading it for more and more people to use it (e.g. they recently have added a quiz features). They also use it during AMAs to reward people in real time. It’s a very smart approach to grow their communities and get familiar with ZIL. I can see this becoming very big on Telegram. This tool suggests, again, that the Zilliqa team has a deeper understanding what the crypto space and community needs and is good at finding the right innovative tools to grow and scale.
 
To be honest, I haven’t covered everything (i’m also reaching the character limited haha). So many updates happening lately that it's hard to keep up, such as the International Monetary Fund mentioning Zilliqa in their report, custodial and non-custodial Staking, Binance Margin, Futures & Widget, entering the Indian market, and more. The Head of Marketing Colin Miles has also released this as an overview of what is coming next. And last but not least, Vitalik Buterin has been mentioning Zilliqa lately acknowledging Zilliqa and mentioning that both projects have a lot of room to grow. There is much more info of course and a good part of it has been served to you on a silver platter. I invite you to continue researching by yourself :-) And if you have any comments or questions please post here!
submitted by haveyouheardaboutit to CryptoCurrency [link] [comments]

Best General RenVM Questions of March 2020

Best General RenVM Questions of March 2020

\These questions are sourced directly from Telegram*

Q: How do I shutdown my Chaosnet Darknode? A: Please follow these directions: https://docs.renproject.io/chaosnet/chaosnet-darknode/untitled-3

Q: Can I run a Chaosnet Darknode and Mainnet Darknode at the same time (on the same computer). A: No, if you want to do that you’ll have to run them on separate computers.

Q: You mentioned DCEP in your latest piece and "12 App Ideas", but it's going to run on a centralized private network. The Bank of England also just released a report on how they're thinking about their CBDC and DLT/centralization, and stress that a DLT could add resilience, but there's also no reason a currency couldn't be more centralized. The Block reported that other central banks (like the EU and Singapore) are considering third-party chains like Corda. Can you comment on which CBDC designs may or may not be compatible with RZL? You previously said "RZL sMPC provides ECDSA signatures because that’s what it is used by Ethereum, Bitcoin, etc. Whatever solution they come up with, will be the solution that RZL has to be upgraded to use (the whole point of RenVM is not to tell other chains how to do things, and still provide interop; this means waiting on them to define their solution and then working with that)." So, what does centralization mean for RZL, and how can we think about compatibility between these designs on the technical side?
A: The topic of centralisation in interoperability comes down to the compounding effect of using multiple networks. Put another way “you’re only as decentralised as your most centralised component”. While there are nuances to this, the core idea rings true.
RenVM can be used to interoperate many different kinds of chains (anything using ECDSA, or naturally supporting lively threshold signatures) is a candidate to be included in RenVM. However, a centralised currency that has been bridged to a decentralised chain is not decentralised. The centralised entity that controls the currency might say “nothing transferred to/from this other chain will be honoured”. That’s a risk that you take with centralised currencies (take a look at the T&Cs for USDC for example).
The benefit of RenVM in these instances is to become a standard. Short-term, RenVM brings interoperability to some core chains. Medium-term, it expands that to other more interesting chains based on community demands. Long-term, it becomes the standard for how to implement interop. For example: you create a new chain and don’t worry about interop explicitly because you know RenVM will have your back. For centralised currencies this is still advantageous, because the issuing entity only has to manage one chain (theirs) but can still get their currency onto other chains/ecosystems.
From a technical perspective, the Darknodes just have to be willing to adopt the chain/currency.

Q: dApps will have their own risk tolerances for centralized assets. Eg USDC was a bigger deal for MakerDAO than Uniswap. If CBDC liquidity were suddenly bridgeable, some dApps would be more eager to adopt it than others - even despite the risks - because they provide native liquidity and can be used to store/hedge in it without cashing it out. My question is more technical as it relates to RenVM as the "Universal Stablecoin Converter". You sound convinced that RenVM can bridge Libra, DCEP, maybe other CBDCs in the future, but I'm skeptical how RenVM works with account-based currencies. (1) Are we even sure of DCEP's underlying design and whether it or other CBDCs even plan to use digital signatures? And (2) wouldn't RenVM need a KYC-approved account to even get an address on these chains? It seems like DCEP would have to go through a Chinese Circle, who would just issue an ERC20.
A: As far as underlying blockchain technology goes (eg the maths of it) I don’t see there being any issues. Until we know more about whether or not KYCd addresses are required (and if they are, how they work), then I can’t specifically comment on that. However, it is more than possible not to require RenVM to be KYCd (just like you can’t “KYC Ethereum”) and instead move that requirement to addresses on the host blockchain (eg KYC Ethereum addresses for receiving the cross-chain asset). Whether this happens or not would ultimately be up to whether the issuer wanted interoperability to be possible.

Q: In that scenario, how would RenVM even receive the funds to be transferred to the KYC'd Ethereum address? For Alice to send DCEP to Bob's KYC'd Ethereum address, RenVM would need a DCEP address of its own, no?
A: Again, this is impossible to say for certain without knowing the implementation of the origin chain. You could whitelist known RenVM scripts (by looking at their form, like RenVM itself does on Bitcoin). But mostly likely, these systems will have some level of smart contract capabilities and this allows very flexible control. You can just whitelist the smart contract address that RenVM watches for cross-chain events. In origin chains with smart contracts, the smart contract holds the funds (and the keys the smart contract uses to authorise spends are handled as business logic). So there isn’t really a “RenVM public address” in the same sense that there is in Bitcoin.
Q: The disbonding period for Darknodes seem long, what happens if there is a bug?
A: It’s actually good for the network to have a long disbonding period in the face of a bug. If people were able to panic sell, then not only would the bug cause potential security issues, but so too would a mass exodus of Darknodes from the network.
Having time to fix the bug means that Darknodes may as well stick around and continue securing the network as best they can. Because their REN is at stake (as you put it) they’re incentivised to take any of the recommended actions and update their nodes as necessary.
This is also why it’s critical for the Greycore to exist in the early days of the network and why we are rolling out SubZero the way that we are. If such a bug becomes apparent (more likely in the early days than the later days), then the Greycore has a chance to react to it (the specifics of which would of course depend on the specifics of the bug). This becomes harder and slower as the network becomes more decentralised over time.
Not mcap, but the price of bonded Ren. Furthermore, the price will be determined by how much fees darknodes have collected. BTW, loongy could you unveil based on what profits ratio/apr the price will be calculated?
This is up to the Darknodes to governance softly. This means there isn’t a need for an explicit oracle. Darknodes assess L vs R individually and vote to increase fees to drive L down and drive R up. L is driven down by continue fees, whereas R is driven up by minting/burning fees.

Q: How do you think renvm would perform on a day like today when even cexs are stretched. Would the system be able to keep up?
A: This will really depend on the number of shards that RenVM is operating. Shards operate in parallel so more shards = more processing power.

Q: The main limiting factor is the speed of the underlying chain, rather than RenVM?
A: That’s generally the case. Bitcoin peaks at about 7 TPS so as long as we are faster than this, any extra TPS is “wasted”. And you actually don’t want to be faster than you have to be. This lets you drop hardware requirements, and lowering the cost of running a Darknode. This has two nice effects: (a) being an operator generates more profit because costs are lower, and (b) it’s more accessible to more people because it’s a little cheaper to get started (albeit this is minor).

Q: Just getting caught up on governance, but what about: unbonded REN = 1 vote, bonded REN = (1 vote + time_served). That'd be > decentralization of Darknodes alone, an added incentive to be registered, and counter exchanges wielding too much control.
A: You could also have different decaying rates. For example, assuming that REN holders have to vote by “backing” the vote of Darknodes:
Let X be the amount of REN used to voted, backed behind a Darknode and bonded for T time.
Let Y be the amount of time a Darknode has been active for.
Voting power of the Darknode could = Sqrt(Y) * Log(X + T)
Log(1,000,000,000) = ~21 so if you had every REN bonded behind you, your voting power would only be 21x the voting power of other nodes. This would force whales to either run Darknodes for a while and contribute actively to the ecosystem (or lock up their REN for an extended period for addition voting power), and would force exchanges to spread their voting out over many different nodes (giving power back to those running nodes). Obviously the exchange could just run lots of Darknodes, but they would have to do this over a long period of time (not feasible, because people need to be able to withdraw their REN).

Q: Like having superdelegates, i.e, nodes trusted by the community with higher voting power? Maybe like council nodes
A: Well, this is essentially what the Greycore is. Darknodes that have been voted in by the community to act as a secondary signature on everything. (And, interestingly enough, you could vote out all members to remove the core entirely.)

Q: Think the expensive ren is a security feature as well. So, doubt this would impact security potentially? I don’t know. I wouldn’t vote to cut my earnings by 40% for example lol
A: It can lead to centralisation over time though. If 100K REN becomes prohibitively expensive, then you will only see people running Darknodes that can afford a large upfront capital investment. In the mid/long-term this can have adverse effects on the trust in the system. It’s important that people “external” to the system (non-Darknodes) can get themselves into the system. Allowing non-Darknodes to have some governance (even if it’s not overall things) would be critical to this.

Q: That darknode option sounds very interesting although it could get more centralized as the price of 100k Ren rises.For instance dark nodes may not want to vote to lower the threshold from 100k to 50k once Ren gets too expensive.
A: A great point. And one of the reasons it would be ideal to be able to alter those parameters without just the Darknodes voting. Otherwise, you definitely risk long-term centralisation.

Q: BTC is deposited into a native BTC address, but who controls this address (where/how is this address’s private key stored)?
A: This is precisely the magic behind RenVM. RenVM uses an MPC algorithm to generate the controlling private key. No one ever sees this private key, and no one can sign things with it without consensus from everyone else.
submitted by RENProtocol to RenProject [link] [comments]

Weekly Update: Mycro on ParJar, PAR on MetaMorphPro, new customer for Resolvr, 1UP on IDEX... – 19 Jul - 25 Jul'19

Weekly Update: Mycro on ParJar, PAR on MetaMorphPro, new customer for Resolvr, 1UP on IDEX... – 19 Jul - 25 Jul'19
Heya everyone, looks like we are in for another round of rapid catch ups on the weekly updates. Haha. Here's another exciting week at Parachute + partners (19 Jul - 25 Jul'19):

In honour of our latest partnership with Silent Notary, this week we had an SNTR Parena. Richi won the finale to take home a cool share from the 1.5M SNTR pot. The weekly Parena had a 100k PAR pot. McPrine took home the lion’s share by beating Ken in a closely fought finale. In 8 months since ParJar started, we are now at 12k users, 190k transactions and 200+ communities. Cap says: “…to put it into perspective - June 18th we were around 100k transactions and 9 k users. A month later we’ve added 3k new users (33% growth) and 80,000 new transactions”. Freaking amazing! And thank you for the shoutout aXpire! MYO (Mycro) was added to ParJar this week. And their community started experiencing the joys of tipping.
Lolarious work by @k16v5q5!
Last week MetaMorphPro did a Twitter vote to list new projects. Turns out Parachuters did PAR a solid. Woot woot! The first ever official TTR shirt is already live in the Parachute shop. Alexis announced the start of a shirt design contest to add to the TTR shirt inventory. Ian’s art quiz in TTR this week saw 25k PAR being given away to winners. Victor’s quiz had another 25k PAR pot for the winners. And Unique’s Math quiz in TTR was a 50k PAR extravaganza. All in all, 100k PAR won in quizzes in TTR this week. Sweet! Cryptonoob (Tom) set up a survey this week for “..for people who are interested in Crypto but don't know where to start..” for his work on the Parachute app UX. We all know how much Gian loves the reality show Big Brother. So we saw a new take on his Tuesday fun events. Mention your favourite reality show and what it’s all about to get some cool PAR. Yay!
A PAR coaster makes its way from design to final product in @k16v5q5’s workshop
Chris’ Golf tourney contest resulted in no winners since there were no correct guesses. So he decided to give out fun prizes instead: like Jason for coming last, Win for a “hilariously bad guess” of 100 strokes for the champions total score etc. Haha. However, there were a few top prize winners as well. LordHades, with a tournament score of 1968, took home 50k PAR as grand prize. Neat! Ali, Hang, Clinton and Tony came in close at 2nd to 5th positions. Congrats! And with that, Chris announced the start of another contest: Premier League Challenge for Parachuters (Entry code: x0zj2d) with an entry fee of 5000 PAR each. Prize pool yet to be announced. Jason is still in the lead this week in the Big Chili Race at 47 cm. Not much change either in the other plants. Slow week at Chili land.
Ric getting in on that sweet Parachute merch
Last week we shared that AXPR got listed on Binance Dex. The ERC20-BEP2 conversion bridge went live this week. Learn how to convert your ERC20 tokens to the BEP2 variant from the available how-to guides (article/video/gif). To mark the occasion, aXpire gave away a ton of BNB in an easter egg contest plus a 1% AXPR deposit bonus to folks who started using the bridge. Remember, we had mentioned that the reason for the weekly double burn of AXPR will be revealed this week? Well here it is. Resolvr onboarded a new client: HealthGates. More fees, more burn. Read more about it here. Woot! Victor hosted a trivia like every week on Friday at aXpire for 1000 AXPR. 10 questions. 100 AXPR each. Nice! Catch up on the week that was at aXpire from their latest video update. 2gether was selected as one of the top 100 most innovative projects by South Summit this week. Cryzen now built a Discord-Telegram chat bridge so that anything posted in either platform gets cross posted on the other. The latest WandX update covers the dev work that’s been going on for the past few weeks – support for Tezos wallet, staking live for Tezos, Livepeer and Loom etc.
2gether on South Summit’s honour roll
BOMB community member rouse wrote a quick script on how to identify and avoid common crypto scams. Have a read. As BOMB says, “Stay vigilant and always verify”. Last week's giveaway for the top lessons shared by entrepreneurs had so many good entries that the final list was expanded to 19 winners. Awesome stuff! Zach’s latest article on the difference between BOMB and BOMBX explores both the basic and the more complex distinctions. Switcheo’s introductory piece on hyperdeflationary tokens also talks at length about the BOMB project. Zach also announced the start of the Telegram Takeover Challenge this week – get new communities to experience ParJar and BOMB and earn some cool BOMB tokens in return. Win win! In preparation for the integration of the SMS feature in the Birdchain app, the team released an article on some key statistics. Here’s a video from Birdchain CEO Joao Martins discussing the feature. The latest Bounty0x distribution report can be found here. Also, check out a shoutout to the platform in this NodesOfValue article on bounty hunting opportunities.
Start of beta testing for SMS feature in Birdchain
The ETHOS Universal Wallet now supports Bitcoin Cash and Typerium. Following ETHOS’ listing on Voyager, it will also become the native token on Voyager. Switch continued its PR campaign with cover pieces on Yahoo, CCN and DDFX this week. Altcoin Buzz has a section on its site named “Community Speaks” where members of a crypto community share updates on a project they support. This week, Fantom was featured in this section. V-ID is the latest project using Fantom’s ERC20-BEP2 bridge for listing on Binance Dex. Big props to FTM for opening it up to other projects. FTM got listed on Probit and Airswap. FTM can also now be used as collateral for borrowing on the Constant platform. The Fantom Foundation joined the Australian Digital Commerce Association which works on regulatory advocacy in blockchain. This was also a perfect setting for the Fantom Innovation Labs team to attend the APAC Blockchain Conference in Sydney. Here’s a report. In this week’s techno-literature, have a read of the various Fantom mainnets and the TxFlow protocol by clicking here and here respectively.
Another proposed token utility of ETHOS
Uptrennd’s 1UP token was listed on IDEX this week. To put it simply, the growth at Uptrennd Twitter has been explosive. Check out these numbers. Awesome stats! This free speech vs fair pay chart shared by Jeff explains why the community backs the platform. About 96% of 1UP issued this week has been used to level up on Uptrennd. Want a recap of the latest at Uptrennd? Click here. Crypto influencer Didi Taihuttu and his family (The Bitcoin Family) joined the platform this week. Congrats once again to Horizon State for making it to the finals of The Wellington Gold Awards. Some great networking opportunities and exposure right there. If you have been lagging behind on HST news, the latest community update covers the past month. We had also mentioned last week that Horizon State is conducting a vote for The Opportunities Party in New Zealand. Here’s a media report on it. Catch up on the latest at District0xverse from their Weekly and Dev updates. The Meme Factory bot was introduced this week to track new memes and marketplace trends on Meme Factory. The HYDRO article contest started last week was extended to the 27th. 50k HYDRO in prizes to be won. Noice! Hydrogen got nominated as a Finalist to the 2019 FinXTech Awards. HYDRO was also listed on the HubrisOne wallet this week. And finally, here’s a closer look at the Hydro Labs team. The folks who make the magic happen. Sup guys!
The Parachute Big Chili Race Update – Jason at 1st, Sebastian at 3rd
And with that, we close for this week at Parachute and partners. See you again with another weekly update soon.
submitted by abhijoysarkar to ParachuteToken [link] [comments]

Update: Hi /r/Bitcoin! I quit my job to start Cointaxes. Here to answer questions about taxes and digital currencies! I published a YouTube series on top questions, launched crypto tax tools and would love your input on ANY other topics or questions! :)

Hi /Bitcoin! Thank you for reading!
In the last two months since I posted here, my team and I have been hard at work trying to make everyone's lives a bit easier for cryptocurrency and tax. In fact, we will be able to launch some tools this summer that will help optimize your trades from a tax perspective - as you make them. We think there's a chance we could even make it tax advantageous to use crypto vs. fiat... more on that later. For now, we would love to get your feedback on what we're working on.
The TLDR: We made Cointaxes so you can estimate your tax liability and whether or not you have FINCEN obligations for free on our site. It was important to make this summary information free because our mission is create confidence and certainty around cryptocurrencies.
Please let me know if you have any questions or comments (I'll probably respond to every comment here!)
Watch a Cointaxes' YouTube Series answering the top questions How are cryptocurrencies taxed? Why should you pay this year? Am I taxed when I convert into fiat or pull money out of my exchanges? What about mining and airdrops? All this and more is covered!
We launched a tool to help measure your FINCEN requirements for FBAR & FATCA
In my last post, I mentioned a "fun" fact around FINCEN requirements. The media is talking about this more (i.e. CNBC - "How cryptocurrency investors could find themselves behind bars"). The good news is it's really simple for the ledger technology we built to check if you cross the $10,000 or $50,000 thresholds. On our site, Cointaxes, you can add your exchanges and then check if you have crossed the threshold. Importantly, we wanted to make this critical information available for free. Particularly because the the deadline is April 15.
If you fail to file the FBAR, the deadline will be extended to October 15. You can read more about this on official government sites General FBAR information, FBAR FAQS (not super helpful IMO) and the online form itself.
About Cointaxes
Cointaxes was formed and funded with the mission to establish confidence and certainty around cryptocurrency. We have a base tax preparation tool with support for Coinbase, GDAX, Binance, Bittrex, Poloniex, and Kraken.
We made Cointaxes so you can estimate your tax liability and whether or not you have FINCEN obligations for free on our site. Your detailed reports or Form 8949 for tax filing is behind a modest paywall compared to what we've seen other tools out there charging.
We see global adoption of digital currencies as an inevitability. The uncertainty lies in how effectively and smoothly this once-in-a-lifetime shift occurs. As a tax preparation service, we have a special seat in the cryptocurrency ecosystem directly related to this uncertainty: it is our job to help both citizens and governments around the world understand how to use and treat digital currencies.
If our mission excites you
Newsletter update
If you want to stay on top of regulatory and tax related crypto news (as well as when we roll out shiny new tools) then consider subscribing to our newsletter.
If you signed up for our newsletter two months ago - sorry for the lack of content! We've been too focused on trying to get this product up and running in time for the deadline (barely made it!) We recently expanded our team and will be able to be much more consistent about the content we're creating!
Important Disclaimers: For this post and any of my replies to your questions below... this is not tax advice and should not be relied upon for making any tax decisions. We always recommend speaking to a tax professional before making decisions related to your taxes and our guides are not a substitute for tax advice.
submitted by StopTheVok to Bitcoin [link] [comments]

Bitcoin Cash Fund - Monthly Report 02.02.18

Bitcoin Cash Fund - Monthly Report 02.02.18
 
At the end of every month I will be writing an update on the Bitcoin Cash Fund to keep everyone up-to-date on what has been going on. This will include Active Projects, Complete Projects, Bitcoin Cash Meetups, Skills Sought, and BCF Organisation updates.
 
If you don't know what the BCF (Bitcoin Cash Fund) is go check out our website at thebitcoincash.fund or come and talk to us in our community chat at chat.thebitcoincash.fund.
 
 
ACTIVE PROJECTS
 
Bitcoin Cash Treasure Hunt
What's more exciting than a little treasure hunt? The Bitcoin Cash treasure hunt initiative is underway as we speak. Members of the community will be able to design a unique paper wallet for the worldwide scavenger hunt. The wallet will have instructions designed to give beginners some background information about Bitcoin Cash, and a link to "https://findbitcoin.cash," which will have instructions on how they can claim their funds. The site will serve a multitude of purposes.
Firstly, it will host a map, where community members can hide wallets and provide geo-mapped clues as to where they are.
Secondly, a resource for beginners to learn some basics of Bitcoin Cash. Lastly, it will provide links to resources in the community to expand their knowledge about the Bitcoin Cash ecosystem! We anticipate the site to be up and running in full functionality by the time next weeks update comes out.
This project is expected to launch next week.
 
SeatacBCH
The goal of the SeatacBCH project is to prepare, deploy, and build a ground-based grassroots movement in the Seatac area of the U.S.A. to promote the acceptance of Bitcoin Cash at local businesses.
The project is just waiting on the completion of a new POS service.
 
BarberAd
George and his son, Andy are at the barbershop, when George suddenly remembers he left his wallet at home. Luckily, Andy has some Bitcoin Cash and sends his dad some. George then tips his barber, and pays for both their haircuts. There will also be humorous elements within the script. 2 different edits - One 30 second, and a 1:30 edit.
The ad is now complete except for the few CG elements. Once these are complete the promotional video will be released.
 
BCHTuts (Bitcoin Cash Tutorials)
A series of 10 tutorials covering tools in the Bitcoin Cash ecosystem. Each will come as text and video. People who enjoy going at their own pace can read the written form and people who want to kick back can watch the video. Tutorials will be published on Yours.org and have a YouTube video embedded.
This project is in progress.
 
BitcoinCashJS?
Since Bitcoin Cash's launch in August, there is an ever-increasing need for a BCH-specific JavaScript development library. Currently, all businesses providing a service via a web interface that wish to support Bitcoin Cash or handle Bitcoin Cash transactions are forced to fork one of the existing Bitcoin libraries and apply the necessary changes to make the code BCH-compatible. This is a very error prone process, and increases friction for the development of new applications in the ecosystem.
BitcoinCash.js will be the first JavaScript development library which is 100% BCH-compatible out of the box, and will remain up-to-date with all future Bitcoin Cash upgrades, such as the upcoming new address format to be released in January. This will streamline the creation of new interesting user applications, reduce the surface for errors, and help push Bitcoin Cash into global adoption
 
Business Onboarding Info Pack
A project to put together an info pack to get businesses started with Bitcoin Cash. The current plan is to include a pamphlet, some Bitcoin Cash Accepted Here" stickers, some leaflets aimed at users for the business to have available at the point-of-sale, and a paper wallet with small amount of Bitcoin Cash to play with. These packs will then be provided at meetups, events and anyone who needs them for onboarding businesses.
The information pamphlet is complete and on order. The stickers are complete and on order. We now have the ability to use custom designs on cashaddress.org. We are now in the process of creating the leaflet for users. There was a hold up on this while we looked for a graphic designer.
 
BCH Netherlands Mini-Conference
A one day conference in Amsterdam. During this conference we will discuss Bitcoin Cash from a social, technical and commercial point of view. Speakers from companies such as BTC.COM, Lokad and the Bitcoin Cash Fund will give you a unique perspective of what is going on with the Bitcoin Cash crypto currency. The event will be held on the roof of the TQ building (TQ Club) in the heart of Amsterdam.
Interesting Talks by industry leaders including: - Remy - Introduction + Bitcoin Cash changes lives in Venezuela - Alejandro DeLaTorre (BTC.com) - What we need to do to make Bitcoin Cash successful - Justin Bons (Cyber Capital) - Bitcoin Cash; A store of value and the importance of it being a functional currency - Tobias Hoffmann (BTC.com) - A fork in the road: differences between Bitcoin and Bitcoin Cash - Joannes Vermorel (Lokad) - The scalability challenges of Bitcoin Cash - Paul Wasensteiner (The Bitcoin Cash Fund) - The BCF and the Path to a Billion Users
 
High Quality Bitcoin Cash Ad
The concept is to create a high-quality Bitcoin Cash ad that is accessible to the masses and that we can use to heavily advertise Bitcoin Cash in video form (e.g. on youtube, vimeo, and social media). The ad would be similar in nature to this ad by Coca Cola. It would show people all around the world using Bitcoin Cash (and having a great life) in their every day lives.
The tagline would be 'Bitcoin Cash - For everyone'. The idea is to show that Bitcoin Cash is a currency that is accessible to save and spend and receive by anyone and everyone in the world, and that by doing so people gain access to the global economy.
 
Bitcoin Cash Documentary
A project to be produced simultaneously as the ad to maximise fund use.
The documentary would target two key concepts:
There would be a short motion graphic section in the documentary to explain the technical side of why/how Bitcoin Cash exists (e.g. block size, forks, on-chain scaling). This informational motion graphics section would also be suitable as a stand-alone video that can be used on social media to explain the situation.
We are now actively looking for people around the world who use Bitcoin Cash, and the ability to use it impact their lives. If this is you, or you know someone like this, please get in touch.
 
Project 1B
This project is a grand scheme to work towards on-boarding 1 billion people onto the Bitcoin Cash economy in developing countries.
The concept is to manufacture and sell $5 feature phones in large quantities in various developing countries, and have these devices partly subsidised by various parties including charities and mobile networks. These phones would have a simple user and merchant Bitcoin Cash app pre-installed and would be loaded with a few dollars worth of Bitcoin Cash. For example, the phone cost = $5 and the phone has $4 of Bitcoin Cash on it.
The apps will work with very low resources in a similar way to the wallets at yours.org.
 
Super Secret Website Project
We have a big website project we are working on internally (Not the BCF website). We will have some big updates on this over the coming month.
 
We are currently in the process of setting up many more exciting projects!
 
 
COMPLETE PROJECTS
 
TxHighway
Visualize the difference in speed and scalability by comparing Bitcoin Cash and Bitcoin Core's transactions using our highway themed blockchain visualizer. Unlock a bonus sprite with each donation back to the Bitcoin Cash Fund and monitor your address.
This project executed with massive success! Soon we hope to be working with the amazing team that built this site to produce a new educational tool.
 
What Is Bitcoin Cash?
This is an internal BCF project to produce a video similar to the What is Bitcoin? video, but remade for Bitcoin Cash. The voiceover for the video is the amazing Kevan Brighting who did the voiceover for the award winning game Stanley Parable. The video will be roughly 1:30 minutes long and should be completed within 2-3 weeks.
Work has started on the translations to Chinese, Spanish, Korean, Japanese, and French. This should take another week or so.
 
Bitcoin Cash Sound Branding
Internal BCF project to produce a branded sound for Bitcoin Cash payments. This sound would be used industry wide in apps when a bitcoin cash payment is sent or received. This sound would also be used in promotional video material to reinforce the brand. This sound would have a similar psychological effect as the macbook powering-on sound.
This is now complete and can be heard at the end of the new 'What is Bitcoin Cash?' video.
Please reach out to all the wallets that use Bitcoin Cash and show your support for the BCH sound branding.
 
 
Global Bitcoin Cash Meetups
There is now a total of at least 34 Bitcoin Cash
 
 
The BCF will be sponsoring all these meetups and providing support to the organisers. It is amazing to see how rapidly they are popping up all over the globe!
If you live in a major city and would like to start hosting Bitcoin Cash meetups, get in contact with us. Reach out to our official twitter account dedicated to coordinating with meetups @BCFmeetups!
 
 
BCF ORGANISATION
 
New Team Members:
 
Lilla - Graphic Designer.
Lilla is a highly talented graphic designer and she will be helping us produce lots of beautiful visual content and assets, including:
  • Web illustrations,
  • Digital ads,
  • Infographics,
  • Stickers,
  • Custom paper wallets,
  • Merchanise,
  • Flyers,
  • Posters,
  • Booklets,
  • Tradeshow assets,
  • And lots more.
 
Based on feedback we have received from the community, we have streamlined the process of proposing projects to us, so that it requires as little effort as possible. You can access the new system at https://fpr.thebitcoincash.fund/. Let us know what you think.
 
Financial Transparency
 
We fully understand that as an organisation we need to be fully transparent about what we are doing, especially in the area of finances. We intend to have something more graphically presentable on our website once the second phase of development is complete, but for now you can see a list of all transactions we have made from the BCF donation address. You can also see this in this SPREADSHEET.
 
Our spending so far is:
  • November 2017 - $3,639
  • December 2017 - $8,299
  • January 2018 - $38,559
 
The balance of our funding is: 53.29418666 BCH
 
 
VOLUNTEERS SOUGHT
 
  • Project Managers,
  • Web devs,
  • Graphic Design,
  • Marketing,
  • Sales,
  • Writing,
  • Business Onboarding,
  • Social media,
  • Translation,
  • Videography,
  • Audio,
  • Music,
  • Motion Graphics,
 
We need people with skills like this to volunteer some of their time for projects to bring awareness and adoption of Bitcoin Cash. If this is you get in contact with me, or come and talk to us at chat.thebitcoincash.fund. We can also budget some amount of funds for work, but priority will be given to people willing to do at least partially volunteer their time.
If you don't have any of these skills, that doesn't mean we don't need your help. There are lots of other things that projects need help with (i.e. sending out stickers, handing out leaflets, writing education content etc.).
 
 
If anyone has any questions feel free to post them below and I will try to answer any that you have.
Paul W.
The Bitcoin Cash Fund.
submitted by bitcoincashfund to btc [link] [comments]

An in-depth analysis of the unique tokenomics of Lynchpin Token

An in-depth analysis of the unique tokenomics of Lynchpin Token

https://preview.redd.it/aemkiims8i131.jpg?width=540&format=pjpg&auto=webp&s=f351fe00c8314ecf6d4a6204ee70ec7690ed4f1f
The Lynchpin Token project was created with a clear purpose in mind: to develop a universal utility token; a stable coin that can be used as a safe medium of exchange without being affected in any way by hype or speculation. The true value of our LYN token lies within a network built around its use. Our unique tokenomics model is based on several core elements: supply, demand, and the 18 decimal point of Ethereum’s ERC20 smart contract model.
Generally speaking, mining and staking are accountable for creating a new token supply. This creates inflation similar to fiat currency, and usually, the last person that purchased a certain coin or token gets affected the most. Bitcoin is the perfect example. Those that bought it $20,000 back in December 2017, now suffer the most. Rather than create a new token supply, we, at Lynchpin Token prefer to pay the gas fees linked to the Ethereum network.
In the following lines, we will try to answer several fundamental questions pertaining to our business model and unique selling proposition. We hope that the answers will help paint a clearer picture of the Lynchpin Token ecosystem, as well as our mission to bring real adoption using LYN token into the market.
We’ve pinpointed four fundamental industry problems in the world of cryptocurrencies. With LYN we can solve them.
1. Hype triggers speculation, leaving no room for real adoption to occur. From an economical perspective, hype creates a bubble that will eventually burst. By using LYN, we control keep the price under control with a low supply and a proprietary merchant adoption program to increase demand.
2. Cryptocurrencies don’t have any real value because there’s no viable story backing up a concept. Most projects offer a vision, an idea, or a concept that might work in the future. We’ve created an utility token with applied benefits now, in the present.
3. There’s no utility proposition to most cryptocurrencies because people can’t use ICO tokens to purchase physical goods. They’ll have to wait for that token to be listed on an exchange, trade it for BTC/ETH, and then trade again for cash. LYN token holders can use LYN to buy physical goods directly from our partners’ websites. (one of our signed partners, is upcoming e-commerce platform Go Buy Bid, but more merchants will be announced soon).
4. Most project issue new token supplies via mininr or staking, triggering inflation and inevitable corrections. LYN token has a limited supply of 5 million LYN (3 million will be locked for 12 months, leaving only 2 million in circulation). We’re not offering any free tokens via airdrops or bounties because we want to create more demand and ensure the constant increase in price of LYN.

Understanding token supply

It’s impossible to put a defined price or set a value on a cryptocurrency without first acknowledging current and future supply. A given coin’s supply plays a fundamental role in establishing a price, but we understand things can get confusing at times. A token’s market cap usually becomes affected by factors like circulating & maximum supply, inflation, lost tokens, airdrops, and more. Understanding circulating supply, as well as the way it uniquely related to a coin is an important part of performing due diligence.

How circulating supply vs. total supply works for LYN token

If you do a quick Google search for CoinMarketCap, you’ll come across thousands of digital coins, each with a different circulating supply listed. Given that each token is different, the circulating supply has to be weighed against that token’s eventual maximum supply.
We, at Lynchpin Token, have divided our tokenomics into two core sections:
• Total token supply: 5 million LYN
• Circulating token supply: 4 million LYN
The remaining 1 million LYN tokens from the total token supply is reserved for our internal team and partners. Following the completion of our ICO, there will be a lock-up period of 12 months on:
• 1 million LYN tokens
• 2 million LYN tokens reserved for our private sale
According to CoinMarketCap, “locked coins cannot be sold on the public market; therefore they do not affect the price of token, nor the market capitalization”. By locking a total amount of 3 million tokens in a safe escrow account for 12 months, we limit supply and increase demand for LYN tokens.
For our public sale, we have reserved 2 million LYN tokens. These are the tokens that won’t be locked away following the completion of our ICO; token holders that purchased LYN during the public sale are free to trade their LYN as soon as the token has been listed on major exchanges.
While we are aware that some people will dump LYN tokens following the ICO, our greatest advantage is the limited supply. After the 12-month lock-up period ends, we estimate LYN token to have already increased 10x, 20x times due to demand. Why we predict there will be tremendous demand for LYN tokens?

Understanding token demand

Token demand is directly linked to the way a token is used. Depending on each project’s business model, demand can either increase or decrease. Lynchpin Token aims to create utility by leveraging several proprietary products and programs:
• LynPay Debit Card solution developed in partnership with LynPay Payment Solutions Pte. Ltd. This debit card will allow you to convert your cryptocurrencies into fiat to make payments for goods and services. To subscribe for one of the cards you would need to buy with your LYN tokens.
• LynPay POS machines which our signed merchants will implement to perform cryptocurrency transactions. This would allow direct payment to merchants using cryptocurrencies (e.g. BTC, ETH, LYN).
• LynPay multi-currency wallet. Version 2.0 of the wallet would make it a one stop solution to do KYC, sell your cryptocurrencies on an exchange, use your debit card, use the wallet to make purchases via the POS machines.
• LynPay merchant adoption program (We have already partnered with upcoming e-commerce platform GoBuyBid, and game development company, RMP Games). LYN tokens will be the main spending currency in the near future.

How token demand works for Lyn token

Since demand goes hand in hand with supply, we’ve chosen to limit our LYN token supply to 5 million LYN tokens throughout our token sale event. We will not be issuing any new tokens to prevent inflation, and we will not have any free airdrops or bounties because we value our investors. Our number one priority is to limit supply to prevent unforeseen LYN token dumps following the completion of our ICO. We believe that a low token supply combined with proper marketing of our uses cases (LynPay Debit Card, POS machines, LynPay merchant adoption program) will create great demand for LYN tokens, leading to outstanding price increases.
In response to our community asking us why we chose to have a total token supply of 5 million LYN tokens, we reply:
“Our aim is to create stability for our LYN token, and we plan to do that by limiting our supply to 5 million tokens. Furthermore, a total amount of 3 million LYN tokens will be locked for 12 months, leaving a limited supply of 2 million LYN tokens for the public. To increase the price of LYN, we are focusing on building strong uses cases for our project, as well as leverage the Ethereum-based 18 decimal point to help increase the intrinsic value of LYN”.
In terms of marketing and community growth strategies, we chose to do cash-based campaigns only based on high-quality PR, content & social media marketing via our channels, events and meetups around the world where anyone can attend to ask questions about the project.
We chose not to set up free airdrops because we believe their scope is to onboard random people with no interest of being part of the Lynchpin Token community. We, at Lynchpin Token, aim to build a loyal community for our project.

Why did we choose the 18 decimal point for LYN token?

Ether, the main cryptocurrency of Ethereum, has 18 decimals. 1 ETH equals 1,000,000,000,000,000,000 wei, which provides greater precision. Basically, we don’t want to limit our users. Take the US dollar for example. The minimum you can own is $0.01; you can’t go any lower than that. Although it may not seem relevant now, we’ve decided to use the 18 decimal standard to allow as many users as possible to own LYN tokens and increase its value.
Although we understand that the zero (0) decimal standard is easier to assimilate, we believe it’s about which unit to use. With ETH, wei permits skipping decimals, meaning that you can’t go lower than 1 wei. Furthermore, preserving the same decimals eases smart contract programming because there’s no need to perform unit conversions (which provides 18 decimal precision).

Conclusion

Many ICOs these days include airdrops and free token giveaways as part of their marketing efforts. But their only goal is to hit their hard cap, not strengthen the community. We’ve seen the strategy backfire many times, because as soon as a coin/token reaches an exchange, it is immediately dumped. We strongly believe in creating a loyal community that truly believes in our project and can help protect it. We don’t offer LYN token packages at a certain amount, and we don’t have any requirements regarding a minimum amount required to purchase LYN tokens. We believe support can come in any form, and everyone can buy as little as 1 LYN token.
The cryptocurrency market is paved with thousands of cryptocurrencies. Before supporting any token, make sure that you understand its tokenomics first. We, at Lynchpin Token, believe that with a solid tokenomics we will be successful with solving the main problems in the industry today. With solid grounding on tokenomics , it will also allow us to be ready for growth and adoption. Any success in adoption will enhance the value for early supporters of the token not devalue it.
Source: Ioana Paicu, Content Writer at Lynchpin Token
|| WEBSITE || WHITELIST || BITCOIN TALK || TELEGRAM || FACEBOOK || TWITTER ||
submitted by LyntokenTeam to Lyntoken [link] [comments]

Bitcoin Cash Fund - Weekly Report 19.01.18

Bitcoin Cash Fund - Weekly Report 19.01.18
 
Every Friday I will be writing an update on the Bitcoin Cash Fund to keep everyone up-to-date on what has been going on. This will include Active Projects, Complete Projects, Bitcoin Cash Meetups, Skills Sought, and BCF Organisation updates.
 
If you don't know what the BCF (Bitcoin Cash Fund) is go check out our website at thebitcoincash.fund or come and talk to us in our community chat at chat.thebitcoincash.fund.
 
 
ACTIVE PROJECTS
 
SeatacBCH
The goal of the SeatacBCH project is to prepare, deploy, and build a ground-based grassroots movement in the Seatac area of the U.S.A. to promote the acceptance of Bitcoin Cash at local businesses.
The project is just waiting on the completion of a new POS service.
 
What Is Bitcoin Cash
This is an internal BCF project to produce a video similar to the What is Bitcoin? video, but remade for Bitcoin Cash. The voiceover for the video is the amazing Kevan Brighting who did the voiceover for the award winning game Stanley Parable. The video will be roughly 1:30 minutes long and should be completed within 2-3 weeks.
This video is now complete, and we are aiming to release either today or over the weekend. Work has started on the translations to Chinese, Spanish, Korean, Japanese, and French. This should take another week or so.
 
BarberAd
George and his son, Andy are at the barbershop, when George suddenly remembers he left his wallet at home. Luckily, Andy has some Bitcoin Cash and sends his dad some. George then tips his barber, and pays for both their haircuts. There will also be humorous elements within the script. 2 different edits - One 30 second, and a 1:30 edit.
The ad is now complete except for the few CG elements. Once these are complete the promotional video will be released. These should be completed over this weekend.
 
BCHTuts (Bitcoin Cash Tutorials)
A series of 10 tutorials covering tools in the Bitcoin Cash ecosystem. Each will come as text and video. People who enjoy going at their own pace can read the written form and people who want to kick back can watch the video. Tutorials will be published on Yours.org and have a YouTube video embedded.
This project is in progress.
 
BitcoinCashJS?
Since Bitcoin Cash's launch in August, there is an ever-increasing need for a BCH-specific JavaScript development library. Currently, all businesses providing a service via a web interface that wish to support Bitcoin Cash or handle Bitcoin Cash transactions are forced to fork one of the existing Bitcoin libraries and apply the necessary changes to make the code BCH-compatible. This is a very error prone process, and increases friction for the development of new applications in the ecosystem.
BitcoinCash.js will be the first JavaScript development library which is 100% BCH-compatible out of the box, and will remain up-to-date with all future Bitcoin Cash upgrades, such as the upcoming new address format to be released in January. This will streamline the creation of new interesting user applications, reduce the surface for errors, and help push Bitcoin Cash into global adoption
This projects need more people to assist on it.
 
Business Onboarding Info Pack
A project to put together an info pack to get businesses started with Bitcoin Cash. The current plan is to include a pamphlet, some Bitcoin Cash Accepted Here" stickers, some leaflets aimed at users for the business to have available at the point-of-sale, and a paper wallet with small amount of Bitcoin Cash to play with. These packs will then be provided at meetups, events and anyone who needs them for onboarding businesses.
The information pamphlet is complete. The stickers are complete. We are now in the process of creating the leaflet for users, and creating a way of generating many paper wallets with a custom design.
 
Bitcoin Cash Sound Branding
Internal BCF project to produce a branded sound for Bitcoin Cash payments. This sound would be used industry wide in apps when a bitcoin cash payment is sent or received. This sound would also be used in promotional video material to reinforce the brand. This sound would have a similar psychological effect as the macbook powering-on sound.
This is now complete. We will be releasing this soon and are working with the wallet teams to have this implemented in all wallets that support Bitcoin Cash.
 
BCH Netherlands Mini-Conference
A one day conference in Amsterdam. During this conference we will discuss Bitcoin Cash from a social, technical and commercial point of view. Speakers from companies such as BTC.COM, Lokad and the Bitcoin Cash Fund will give you a unique perspective of what is going on with the Bitcoin Cash crypto currency. The event will be held on the roof of the TQ building (TQ Club) in the heart of Amsterdam. More information on this will be released soon.
Interesting Talks by industry leaders including:
 
High Quality Bitcoin Cash Ad
The concept is to create a high-quality Bitcoin Cash ad that is accessible to the masses and that we can use to heavily advertise Bitcoin Cash in video form (e.g. on youtube, vimeo, and social media). The ad would be similar in nature to this ad by Coca Cola. It would show people all around the world using Bitcoin Cash (and having a great life) in their every day lives.
The tagline would be 'Bitcoin Cash - For everyone'. The idea is to show that Bitcoin Cash is a currency that is accessible to save and spend and receive by anyone and everyone in the world, and that by doing so people gain access to the global economy.
We are now actively looking for people around the world who use Bitcoin Cash, and the ability to use it impact their lives. If this is you, or you know someone like this, please get in touch.
 
Bitcoin Cash Documentary
A project to be produced simultaneously as the ad to maximise fund use.
The documentary would target two key concepts:
There would be a short motion graphic section in the documentary to explain the technical side of why/how Bitcoin Cash exists (e.g. block size, forks, on-chain scaling). This informational motion graphics section would also be suitable as a stand-alone video that can be used on social media to explain the situation.
 
Super Secret Website Project
We have a big website project we are working on internally (Not the BCF website). We will have some big updates on this over the coming month.
 
We are currently in the process of setting up many more exciting projects!
 
 
COMPLETE PROJECTS
 
TxHighway
Visualize the difference in speed and scalability by comparing Bitcoin Cash and Bitcoin Core's transactions using our highway themed blockchain visualizer. Unlock a bonus sprite with each donation back to the Bitcoin Cash Fund and monitor your address.
This project executed with massive success! Soon we hope to be working with the amazing team that built this site to produce a new educational tool.
 
 
Global Bitcoin Cash Meetups
There is now a total of at least 31 Bitcoin Cash
 
 
The BCF will be sponsoring all these meetups and providing support to the organisers. It is amazing to see how rapidly they are popping up all over the globe!
If you live in a major city and would like to start hosting Bitcoin Cash meetups, get in contact with us. Reach out to our official twitter account dedicated to coordinating with meetups @BCFmeetups!
 
 
BCF ORGANISATION
 
We have been working on building out our team this past few weeks. We are now a team of 7 people (Soon to be 8) and are making sure we grow at a pace that allows us to spend all funds we receive as effectively as possible.
 
New Team Members:
 
Cláudio - Translation Coordinator.
Cláudio will be helping us make sure all of our communication is being translated to key languages so that we reach as many people as possible. The BCF is not a global organisation, and that means we need to do better at making sure we reach as many people as we can. This is certainly a challenge, but it is extremely important in achieving our goal of reaching 1 billion people within 5 years. Most of the people who need Bitcoin Cash the most, do not speak English.
 
We are still in discussions with an experienced team to handle our merchandise shop, and we are looking to open this in February. You will be able to buy all sorts of Bitcoin Cash swag from us as soon as this launches, and you will be helping the Bitcoin Cash Fund at the same time. Everybody wins! We will be sure to keep you all posted on this.
 
Based on feedback we have received from the community, we are working on streamlining the process of proposing projects to us, so that it requires as little effort as possible. We should have something to release to improve this next week. For now please just come and talk to us about the projects at chat.thebitcoincash.fund and we will guide you through the process.
 
Financial Transparency
 
We fully understand that as an organisation we need to be fully transparent about what we are doing, especially in the area of finances. We intend to have something more graphically presentable on our website once the second phase of development is complete, but for now you can see a list of all transactions we have made from the BCF donation address. You can also see this in this SPREADSHEET.
 
Our spending so far is:
  • November - $3,639
  • December - $8,299
  • January - $5,340
 
The balance of our funding is: 70.82489590 BCH
 
 
VOLUNTEERS SOUGHT
 
  • Project Managers,
  • Web devs,
  • Graphic Design,
  • Marketing,
  • Sales,
  • Writing,
  • Business Onboarding,
  • Social media,
  • Translation,
  • Videography,
  • Audio,
  • Music,
  • Motion Graphics,
 
We need people with skills like this to volunteer some of their time for projects to bring awareness and adoption of Bitcoin Cash. If this is you get in contact with me, or come and talk to us at chat.thebitcoincash.fund. We can also budget some amount of funds for work, but priority will be given to people willing to do at least partially volunteer their time.
If you don't have any of these skills, that doesn't mean we don't need your help. There are lots of other things that projects need help with (i.e. sending out stickers, handing out leaflets, writing education content etc.).
 
 
If anyone has any questions feel free to post them below and I will try to answer any that you have.
Paul W.
The Bitcoin Cash Fund.
POST ON YOURS.ORG
submitted by bitcoincashfund to btc [link] [comments]

Operation Guide For Wallet - "Vault Of Digital Assets"

Operation Guide For Wallet -


Since entering the cryptocurrency realm, the mobile apps concerning the mining, trading, market, news, message, deposit, etc. have more than doubled. Then, what is “deposit”? It is another saying of digital currency wallet, let’s take a look at the meaning and how to use it?
The wallet is the Keeper of Secret Key
Nowadays, digital assets have become the standard choice for many investors, among them, for long-term holders, wallets have become an indispensable tool for storing assets. In daily life, a wallet is a pocket-size case for holding paper money and various bank cards, while in the digital currency field, the function of the wallet is more complicated and many investors know little about it.
What’s a Crypto Wallet?
A cryptocurrency wallet is a piece of software that keeps track of the secret keys used to digitally sign cryptocurrency transactions for distributed ledgers. Because those keys are the only way to prove ownership of digital assets — and to execute transactions that transfer them or change them in some way — they are a critical piece of the cryptocurrency ecosystem.
A cryptocurrency wallet is a device, physical medium, program or service which stores the public and/or private keys and can be used to track ownership, receive or spend cryptocurrencies. It is comparable to a bank account, contains a pair of public and private cryptographic keys. A public key allows for other wallets to make payments to the wallet’s address, whereas a private key enables the spending of cryptocurrency from that address.

https://preview.redd.it/8n2i5kn0krw21.jpg?width=624&format=pjpg&auto=webp&s=dfa83986d7a3c2b96c85ed516c434da90e63d57a
What are the Public Key, Private Key, and Wallet Address?
Key: Generated by a cryptographic algorithm and presented in pairs, consisting of a private key and a public key.
Private Key: A private key is a sophisticated form of cryptography that allows a user to access his or her cryptocurrency. A private key is an integral aspect of bitcoin and altcoins, and its security make up helps to protect a user from theft and unauthorized access to funds.
Public Key: A public key is a cryptographic code that allows a user to receive cryptocurrencies into his or her account. The public key is created from the private key through a complicated mathematical algorithm. However, it is near impossible to reverse the process by generating a private key from a public key.
Wallet Address: A wallet address is similar to a bank account number. It’s a unique 26–35 digit combination of letters and numbers. Each wallet automatically generates a bitcoin address. You can share this bitcoin address with others to let them know how to send coins to your wallet.
Digital Signature: A digital signature is something you can use to show that you know the private key connected to a public key, without having to reveal the actual private key. It allows non-repudiation as it means the person who sent the message had to be in possession of the private key and so, therefore, owns the Bitcoins — anyone on the network can verify the transaction as a result.


It is not difficult to find through the above diagram that there are many types of blockchain wallets. The most important criterion is whether to master the private key of digital assets. Remember that only the owner of the private key can assess the digital assets.
The private key is recommended to be kept on paper and must not lose! Don’t tell others! Because it represents the ownership of the wallet and the right to operate it. Unlike the password of the bank card, if you forgot it, you can first freeze it and then reset it with your ID card, however, in the world of blockchain, if the private key is lost, it cannot be recovered and the funds secured by it are forever lost, too.
The choice of wallet also needs to be serious. There are various wallet choices, including imToken, APPMyEtherWallet, Bitecoin-QT, BlockChain, Litecoin-QT, Ethereum Wallet, Bitpie, etc. From the perspective of security and scalability, Bitpie and imToken are the two most widely used wallets.
Where can I Download the Wallet?
  1. Ethereum Wallet: imToken (Open source wallets are the safest)
Official Website: https://token.im
Tutorial: https://token.im/support
  1. Bitcoin Wallet: Bitpie (The most powerful wallet in China)
Instructions: http://docs.bitpie.com/zh_CN/latest/
  1. EOS Wallet:
Download: https://www.mytokenpocket.vip/
Single-Signature Address + Multi-Signature Address Improve the Asset Security
In daily digital currency transactions, except for obtaining digital assets via OTC transactions, users can transfer digital currency in their wallet to the exchange wallet. The private key is held by the exchange, while only the public key is available to the user, the transfer of the assets is equivalent to deposit the digital assets to the third-party platform.
We can simply simulate the use of digital currency wallets.
When transfer, the recipient only needs to send the address of the wallet to the counterparty, who may transfer the digital assets to the provided address.
When trading on an exchange, users only need to transfer the digital assets to the address set by the exchange, which is the wallet, to complete the transaction. Accordingly, the exchange will transfer the digital assets to the user’s wallet address (or the wallet of other exchanges provided by the user) when the user chooses to withdraw.
From a simple point of view, the transfer and transaction of digital currency rely on the wallet, thus, the security of the wallet determines the safety of the digital currency.
From a global perspective, the exchange’s major money-losing incidents have occurred frequently, the most famous of which is the Mt.Gox incident, leading to the bankruptcy of the world’s largest exchange operator — Mt.Gox. This shows the importance of choosing the trading platform.
Eric, Technical Manager of 58COIN, once pointed out that investors may often see single-signature addresses starting with “1” (such as 1l, 1p, 1n), and multi-signature addresses starting with “3”. A multi-signature address consists of three single-signature addresses and requires two or more authorizations. For example, A, B, and C three people, if anyone of them wants to buy a thing, two or more signatures are required before the purchase. This is a way to improve security.
58COIN exchange adopts the above two methods to improve the security of the assets. If the project party wants to launch a cryptocurrency, they need to provide a complete solution, and 58COIN will only accept the investor’s assets after ensuring the safety of the project. If an exchange is still using a single-signature address, then you need to go to the exchange to see if it is safe.
In short, the choice of the wallet depends on the user’s situation. If the transaction amount is large, it is recommended to use the wallet with the private key. If the total amount of small transactions is large, you can deposit in the exchange so as to make the operations easier.
Website: https://ww.58coin.com/
Facebook: https://www.facebook.com/coin.58COIN
Twitter: https://twitter.com/58_coin
Telegram: https://t.me/official58
submitted by 58CoinExchange to u/58CoinExchange [link] [comments]

The Bitcoin Vision: Episode 6 Stanford Seminar - Building the Cryptocurrency Ecosystem The Centralised Elements To Bitcoin’s Ecosystem - Peter Vessenes Interview Bitcoin: Beyond The Bubble - Full Documentary - YouTube Bitcoin 2019 - YouTube

Journalist Eric Van den Berg exposed (in Dutch) the ecosystem of celebrity-endorsed Bitcoin scam affiliates. To drive visitors to fake Bitcoin investments, affiliates typically earn $600 per conversion while the scammers make an average $3,000 per victim, Van de Berg reported. The day to day of these Bitcoin scam operations is made of hard-sell pitches to collect so-called investments from ... exploring the Bitcoin blockchain from a graph perspective. 2. BACKGROUND The blockchain takes a central role in the Bitcoin ecosys-tem. It represents a complete and timely ordered history of all transactions ever carried out within the Bitcoin network and is continuously synchronized by Bitcoin clients over the Bitcoin P2P network. The core entities in this database are blocks, transactions ... bitcoin being the most popular amongst them. Enthusiasts and skeptics have debated and come up with disparate opinions to contest both the success and failures of such currencies. However, the veracity of such opinions can only be derived after true analysis of the technological breakthroughs that have occurred in this domain. Blockchains being the backbone of such currencies is a broad ... Over the past year, I’ve fallen down the wonderful rabbit hole of contributing to Bitcoin Core. Along the way, I’ve been very fortunate to receive guidance and support from many people, and I ... exists i n its ecosystem much in the same way that wampum, a seashell, was the currency of the land for Native . Americans (Kelly, 2014). Bitcoin does not have intrinsic value like gold in that it ...

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The Bitcoin Vision: Episode 6

In this episode, Bitcoin Association Founding President Jimmy Nguyen gives us updates in the Bitcoin SV ecosystem which include the scaling developments from the Bitcoin SV Node team, Bitgraph ... Using metaphors from biological evolution, Andreas examines the currency ecosystem and its development. Presented in Milan in March 2016 to the Milan Bitcoin... Subscribe to our Free Financial Newsletter: http://crushthestreet.com Peter Vessenes is with us to discuss the Bitcoin ecosystem and share insights, we discu... Thanks for watching! For donations: Bitcoin - 1CpGMM8Ag8gNYL3FffusVqEBUvHyYenTP8 Balaji Srinivasan Coinbase February 6, 2019 Opportunities in the cryptocurrency sector extend well beyond simply investing in Bitcoin or Ethereum, says Coinbase CTO Balaji Srinivasan. He compares ...

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