Cryptocurrency Daily Discussion - June 28, 2021 (GMT+0) |
- Daily Discussion - June 28, 2021 (GMT+0)
- El Salvador To Buy an Estimated $135,000,000 Worth of Bitcoin.
- It's amazing that my wife isn't more suspicious about how quiet I've gotten about crypto in the last month or so...
- Governments Planning Global Coordinated Regulation of Crypto Currencies From October 2021 Onwards [Due Diligence]
- Got in on Crypto at all time high.
- How Does the Blockchain Work? Blockchain technology explained in simple words
- SafeDollar ‘stablecoin’ drops to $0 following $248 million DeFi exploit on Polygon
- The fee terror is real
- It's so funny how Unpopular crypto is.
- If you're young and thinking of investing in crypto, please take a second to read this.
- Mexican Billionaire Says His Bank Is ‘Working’ to Accept Bitcoin
- Bitcoin flips Tesla by market cap... Sorry Elon!
- Even Gold-Obsessed Indians Are Now Pouring Billions Into Crypto
- The BBC and crypto FUD
- If you have more than 6.8k Moons, you are in the top 1% of holders & the top 19 users could pass a governance poll.
- My dad hates crypto and pretends to know what it is.
- The best way to read r/cc is to sort by "controversial"
- 3.3 Millions of Aussies have jumped into the crypto world �� �� �� Over 500,000 Australians have invested at least $5000 to $10,000 in cryptocurrency
- Summary of “The Triangle of Harm” by Vitalik Buterin
- Here’s When Bitcoin Will Zoom Past $100,000, According to Crypto Veteran Who Accurately Called 50% Drop
- 30 Bitcoin miners receive license in Iran amidst BTC hashrate drop
- A collegue joined a scam coin. Told him the truth
- Don't buy ICP! Even if you're tempted to think it will go back up to its listing price.
- Got another one for you guys - I built an open-source crypto trading bot that analyses Reddit posts sentiment from relevant subreddits
| Daily Discussion - June 28, 2021 (GMT+0) Posted: 27 Jun 2021 05:00 PM PDT Welcome to the Daily Discussion. Please read the disclaimer, guidelines, and rules before participating. Disclaimer:Though karma rules still apply, moderation is less stringent on this thread than on the rest of the sub. Therefore, consider all information posted here with several liberal heaps of salt, and always cross check any information you may read on this thread with known sources. Any trade information posted in this open thread may be highly misleading, and could be an attempt to manipulate new readers by known "pump and dump (PnD) groups" for their own profit. BEWARE of such practices and exercise utmost caution before acting on any trade tip mentioned here. Please be careful about what information you share and the actions you take. Do not share the amounts of your portfolios (why not just share percentage?). Do not share your private keys or wallet seed. Use strong, non-SMS 2FA if possible. Beware of scammers and be smart. Do not invest more than you can afford to lose, and do not fall for pyramid schemes, promises of unrealistic returns (get-rich-quick schemes), and other common scams. Rules:
Useful Links:[link] [comments]  | ||
| El Salvador To Buy an Estimated $135,000,000 Worth of Bitcoin. Posted: 27 Jun 2021 01:10 PM PDT
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| Posted: 27 Jun 2021 07:35 AM PDT To be fair, she is probably just relieved from not having to hear me talk about it. Basically breaking even at the moment, so it's not the end of the world. Plus I never invested any of her money or more than I could afford. All that good stuff. But for a good 5 months or so I was giving her pretty constant updates, because good lord is the bull run exciting and I wanted to share it with someone. Anyway, just a funny thought I had. [link] [comments]  | ||
| Posted: 28 Jun 2021 12:34 AM PDT The worlds' wealthiest nations are aiming for cryptos, restricting, amongst others, the following:
In addition, these new regulations intend to:
In short: they want to change the way the space can operate. As you'll discover, the regulation rolled out aim to create a system of complete transparency and control. At the same time, regulatory clarity could pave the way for the next stage of adoption. What Can You Get from This Due DiligenceFor years, we wondered if governments would "ban Bitcoin." As it turns out, they will not. Instead, they intent to simply absorb cryptos into the existing regulated financial system. This due diligence is based on new international regulations. This DD reveals exactly what the coming regulations mean for cryptos, who is behind them, and how they will be implemented. Next, this DD highlights the most revealing and stunning clauses. And finally, it summarizes which activities are likely to thrive and which are bound to suffer, so that you can prepare yourself. Why Now?In 2018, the news that Facebook was creating a crypto currency shocked international regulators. Until then, they didn't see cryptos as a risk to the stability of the global financial system. However, Libra, the coin Facebook proposed, was a so-called stablecoin; it maintains its value relative to fiat currencies such as the USD. They quickly realized what would happen when a company with a billion users creates an instant payment system that is cheaper, faster and more user-friendly than the current financial system. This topic was discussed at the highest levels of government; the G20, an international forum for the governments and central bank governors from 19 countries and the European Union. They engaged an organization called the Financial Action Task Force (FATF). This organization has passed similar legislation for banking and financial service providers around the world. They are responsible for the fact that all crypto-currency exchanges where fiat is exchanged for cryptos have the same KYC and anti-money laundering requirements as banks. Now, they are going to use this framework to focus on the elements of the industry currently outside their control, and declare what is, and isn't acceptable. New Guidance on Bitcoin and CryptosThe latest draft guidance of the FATF, to be implemented in July 2021, is called "Guidance for a risk-based approach to virtual assets and VASPs" (GVA) [1]. This DD is based on this GVA. As you will learn, they have a deep understanding of what is happening in the space. Moreover, they take the expansive view that "most arrangements currently in operation," including "self-categorized P2P platforms" may have a "party involved at some stage of the product's development and launch" who will be covered by this new legislation. (GVA, p29) Why do the FATF regulations have global reach?Since FATF isn't an official government agency of any country, they cannot create law. They issue what is known as "soft-laws": recommendations and guidance. Only when this guidance is implemented in the laws of the countries, they become "hard-laws" with real power. In theory, they are thus subjected to the formal law-making process of law-giving countries. However, countries that don't participate are placed on a list of "non-cooperative jurisdictions." They then face restricted access to the financial system and ostracism from the international community. For this reason, almost all nations implement these recommendations. It also must be said that national governments, especially in the Western world, highly value this kind of international cooperation and the power it gives them. Many such treaties are passed into law with little opposition or delay. Once these treaties are accepted, they become part of a body of law called international law, a type of law in many cases superseding national laws. Unknown to the general public, international law is increasingly being used as a backdoor for passing invasive regulations such as these. It must be noted that people working for this Paris-based organization are faceless bureaucrats who have not been elected, their procedures and budget are not subjected to democratic oversight, and they are almost impossible to remove from power. Like most international organizations, they fall under the Vienna Conference on Diplomatic Intercourse and Immunities.[2] As such, they enjoy immunity for their actions, are exempt from administrative burdens in the countries they are active, such as taxes, and free from most COVID travel restrictions. When will this "Guidance" be Implemented?The GVA was published in March to be subjected to public consultation. This gives it the appearance of the public having a say in the implementation of it, but when you read it carefully they will consider feedback only on "relevant issues" they themselves selected. Other feedback might be considered in the next review in 12 months (by then, most current recommendations will likely have been passed into law). In other words, this will be it, with minor adjustments. June 2021 FATF previewed all feedback and July 2021 these new "recommendations" would become official. However, last Friday, June 25, FATF postponed the finalization of the recommendations to October 2021. From that day forwards, we can expect these recommendations to start being implemented in our national legal systems, and as such, start affecting our lives. This process has been successfully used in the banking system and tax systems―it is now coming for crypto. It is worth noting that individual countries might decide on even more specific or explicit prohibitions on top of this. It is also worth noting that these regulations do not apply to central bank-issued digital currencies. How Will Cryptos Be Regulated?Before we can understand how FATF proposes to regulate cryptos, we must learn what they mean when they talk about a Virtual Asset: "A virtual asset is a digital representation of value that can be digitally traded, or transferred, and can be used for payment or investment purposes. Virtual assets do not include digital representations of fiat currencies, securities and other financial assets that are already covered elsewhere in the FATF Recommendations." (GVA, p98) Cryptos will not be outright banned. They will be regulated via an indirect method; those who facilitate virtual asset transactions, are designated as a Virtual Asset Service Provider, or VASP. Next, all VASPs will be subjected to similar regulation as banks. The definition of VASP is so wide that most current projects in the crypto space are covered by it. Definition of a VASP:*"*VASP: Virtual asset service provider means any natural or legal person who [...] as a business conducts one or more of the following activities or operations for or on behalf of another natural or legal person:
Many Organizations and Individuals Will Be Designated as VASPs:A VASP is any natural or legal person, and "the obligations in the FATF Standards stem from the underlying financial services offered without regard to an entity's operational model, technological tools, ledger design, or any other operating feature." (GVA, p21) The expansiveness of these definitions represents a conscious choice by the FATF. "Despite changing terminology and innovative business models developed in this sector, the FATF envisions very few VA arrangements will form and operate without a VASP involved at some stage." (GVA, p29) For those wondering if they are a VASP, the following general questions can help guide the answer:
Individual situations will vary and this list offers only some examples." (GVA, p30) What Are VASPs Obliged to Do?All VASPs will be forced to implement KYC legislation and monitor transactions. They become fully regulated entities who need to obtain a license. Individuals can also be labeled a VASP. The real kicker is that all activities not part of the regulated system are labeled as "high-risk." And as such, those performing such activities become high-risk persons, which could have repercussions for accessing the wider financial system. It is important to understand that most peer-to-peer activities themselves will not be banned (although individual countries may do so on their own accord). However, transactions with a "high-risk" background will be tainted and scrutinized. Exchanges risk losing their license if they deal with them, and many will simply choose not to allow them. It might get to a point where proceeds from certain peer-to-peer transactions or private wallets are no longer usable in the financial system, at least not without extensive due diligence. New Government Organizations for Overseeing the Crypto MarketEvery country should assign a "competent authority" to monitor the crypto space and communicate with competent authorities in other countries: "VASPs should be supervised or monitored by a competent authority, not a self-regulatory body (SRB), which should conduct risk-based supervision or monitoring." (GVA, p45) This can be an existing regulatory body, such as a central bank or a tax authority, or a specialist VASP supervisor. (GVA, p91) What Activities Will Be Regulated?This chapter highlights crypto activities, currently considered completely normal, and details how they are to be regulated. Peer-to-Peer transactions: transactions without the involvement of a VASP. They are not subjected to regulation, but are a "risk." That's why the FATF recommends increased monitoring and restriction of this kind of activity, and possibly reject licensing VASPs that engage in it. Stablecoins: are considered a major risk because they think they are more likely to reach mass adoption. They may be targeted at the level of the central developer or governance body, which will be held accountable for the implementation of these recommendations across their ecosystem. Unhosted Wallets: Commonly used private wallets are called: "unhosted wallets." As mentioned, the FATF suggests denying licensing VASPs "if they allow transactions to/from non-obliged entities (i.e., private / unhosted wallets)." (GVA, p37) VASPS should also "treat such VA transfers as higher risk transactions that require enhanced scrutiny and limitations." (GVA, p60) Client Information to Collect by VASPs: all VASPs should collect information on their clients such as the customer's name and further identifiers such as physical address, date of birth, and a unique national identifier number (e.g., national identity number or passport number). VASPs should conduct ongoing due diligence on the business relationship and the customer's financial activities. Travel Rule: FATF recommends applying traditional bank wire transfer requirements on crypto currency transactions; this is called the travel rule. It includes the obligation to obtain, hold, and transmit required originator and beneficiary information associated with VA transfers in order to identify and report suspicious transactions, take freezing actions, and prohibit transactions with designated persons and entities. Information accompanying all qualifying transfers should always contain:
Instant transfer of ID information tied to transactions: Obliged entities should submit the required information simultaneously with the batch VA transfer, although the required information need not be recorded on the blockchain or other Distributed Ledged Technology (DLT) platform itself. Categorize Clients and Activities According to their level of Risk: VA and VASP activity will be subject to a "Risk-Based Approach." In practice, this means that each client and activity is categorized by their risk level. Risk levels are determined based on a variety of factors. Persons or activities considered a risk can see enhanced due diligence and even their ability to use VASPs reduced. Ongoing Transaction Monitoring: Every customer is assigned a risk profile. Based on this profile, customer transactions will be monitored to determine whether those transactions are consistent with the VASP's information about the customer and the nature and purpose of the business relationship. Transactions tight to Digital IDs: In the future, VA transactions might need to be subject to digital identity regulations, also being developed by the FATF. Freezing of Assets: Cryptos can be frozen when the holder is suspect of a crime, as part of other investigations, when the VA is related to terrorist financing, and when related to financial sanctions. The freezing of VAs will happen regardless of the property laws of national legal frameworks, and it will not be necessary that a person be convicted of a crime. Anonymity-Enhanced Cryptocurrencies (AECs) and Privacy Tools: The GVA specifically targets tools intended to improve privacy, such as: anonymity-enhanced cryptocurrencies (AECs) such as Monero, mixers and tumblers, decentralized platforms and exchanges, use of the Internet Protocol (IP) anonymizers such as The Onion Router (TOR), the Invisible Internet Project (I2P) and other darknets, which may further obfuscate transactions or activities. This includes "new illicit financing typologies" [Author: DeFI?], and the increasing use of virtual-to-virtual layering schemes that attempt to further obfuscate transactions in a comparatively easy, cheap, and secure manner" [Author: Lighting, Schnorr, Taproot?]. (GVA, p6) And if a VASP "cannot manage and mitigate the risks posed by engaging in such activities, then the VASP should not be permitted to engage in such activities." (GVA, p51) Obligations to get a License for all VASPs: The GVA intends to subject all VASPs to a licensing scheme: "at a minimum, VASPs should be required to be licensed or registered in the jurisdiction(s) where they are created." (GVA, p40) Moreover, each jurisdiction might require licensing for those servicing clients in their jurisdiction. It bears repeating that a natural person can also be designated as being a VASP and be required to obtain a license to work on a crypto project. Moreover, the competent authorities get to determine who can and cannot become a VASP, and monitor the Internet for unlicensed activities by engaging in "chain analysis, webscraping for advertising and solicitations, feedback from the general public, information from reporting institutions (STRs), non public information such as applications, law enforcement and intelligence reports." (GVA, p41) Bitcoin ATMs: "Providers of kiosks—often called "ATMs," bitcoin teller machines," "bitcoin ATMs," or "vending machines"—may also fall into the above definitions. Decentralized Exchanges: According to the GVA, the concept of a decentralized exchange doesn't exist, since these regulations are technology neutral. As such, those running the exchange can be held liable for implementing these regulations. Multisig Contracts: In case of partial control of keys, like a multisig or any kind of shared transaction, the providers of such services could be subjected to this regulation as well. Regulation of Future Developments: Countries should identify and assess the money laundering and terrorist financing risks relating to the development of new products and business practices. The result might be that the development of new projects need some sort of approval process. International Cooperation of Competent Authorities: And finally, the FATF Recommendations encourages competent authorities to provide the fullest range of international co-operation with other competent authorities. What Will Not Be Regulated?Some good news is that what makes crypto, crypto, remains unregulated; peer-to-peer transactions themselves, small transactions and ecommerce, open source development, and cold storage will remain lawful. Specifically exempt are persons facilitating the technical process, such as miners and nodes (called validators), and those that host, facilitate and develop the network. In addition, small transactions under 1.000 USD/EUR are exempt, although basic identity information will be recorded when done through a VASP. What Will Be the Outcome of These Regulations?This regulation, like many of its kind, will have (un)intended consequences. The stated goal of increased transparency in the space might very well be achieved, reveling the proceeds of certain crimes. However, a secondary goal is clear for those understanding these kinds of open-ended legislation; controlling what can and cannot be done with crypto in the real world by labeling certain activities and undesired persons as "high risk." It will be increasingly difficult to deal with proceeds from the "wrong" activities, especially for people from high-risk countries, engaged in high-risk activities, or just being considered a high-risk person. In addition, it will become expensive and technologically challenging to comply with this legislation. Small companies with unique business models might find it impossible to survive. Only the large regulated entities might remain in existence. This is a common result of regulation that is welcomed by regulators; a few large companies are easier to regulate than one thousand small ones. In some cases, the large participants welcome regulations as well, as it reduces competition. The same happened in the banking sector, for example. Other downsides are that such regulations smother many otherwise beneficial technological projects in the crib and criminalize perfectly legal activities and the innocent citizen performing them. The loss of privacy will also increase security risks, especially for those living in dangerous countries. The Crypto World at a Crossroads:It is hard to determine how specific projects and the crypto space in general are going to be affected; especially since this is not the final guidance. Each national government will have a slightly different interpretation of these regulations, as well as existing laws and precedent in their own country. In addition, individual VASPs will interpret these regulations according to the viewpoint of their legal departments, as well. Cryptos will become a regulatory minefield. A natural consequence of these regulations is that projects and participants in the crypto space will be divided into two categories: those who do/can meet these regulations, and those who do/cannot. Potential WinnersFirst will be those that will fully comply with these regulations. In terms of participants, these will be the big exchanges and onramps, banks, and institutional investors. A lot of participants exclusively use exchanges (VASPs) already for their coins anyway, and for them nothing changes. In fact, additional regulations might help institutional adoption, an idea supported by the fact that the Bank of International Settlements issued new guidance for banks on the prudential treatment of crypto assets.[3] Crypto assets which might succeed in such an environment are projects that have focused on transparency and KYC from the start, or those who are already established too decentralized and operate without any historic VASPs. Potential Losers:Next, there are the activities that are specifically targeted by this regulation; peer-to-peer transactions, privacy coins, decentralized exchanges, decentralized finance, and other peer-to-peer systems. It appears that such projects have only one option and that is to go fully decentralized. Which could actually make them attractive for some. It is worth repeating that in principle, peer-to-peer systems are not against the law. Those participating in them should however accept that part of their assets and proceeds exist outside the regulated financial system, and that by engaging in them they might be labeled a "risk." Finally, there will be projects that fall in between: they are either too centralized to become fully decentralized and considered too "high-risk" to be licensed. Such projects will experience significant headwind. Think about the aforementioned stablecoins, certain decentralized finance applications, certain self-hosted wallets (especially when facilitating exchange functions), and future ICOs. Current projects that are still too centralized are a big question mark. Especially those who have leading individuals still in control of "road-maps," or those relying on "governing councils." Those persons might suddenly be designated a VASP and forced to monitor the individuals and transactions on their network (a big downside as compared to the projects already decentralized). TLDR;Governments at the highest levels (G20) commissioned an organization called FATF to come up with international regulations for cryptos. They are using international law frameworks that supersede national legislation and will force every country in the world to comply. Their main goal is to keep crypto activity restricted to licensed and regulated service providers. A long list of ordinary crypto activities are now labeled a "risk." Engaging in them will result in increased scrutiny and possible difficulties accessing the wider financial system. It remains to be seen how this will affect the crypto world. Over time, it could likely split the crypto space in fully regulated (semi) centralized, and unregulated decentralized projects. The winners will likely be the projects that thrive in either of those; the losers likely those fitting in neither... NOTE: I uploaded this DD first on /r/bitcoin last week, and was asked to post it here. The recommendations were supposed to be finalized in July, but last Friday it was announced that they will now be finalized and implemented with priority by October 2021. Sources:PDF Version, with exact explanations of how the different activities will be regulated: Feel free to forward this PDF to whomever you think should read this information. [1] FATF, "Draft updated Guidance for a risk-based approach to virtual assets and VASPs," (Paris, March 2021), http://www.fatf-gafi.org/media/fatf/documents/recommendations/March%202021%20-%20VA%20Guidance%20update%20-%20Sixth%20draft%20-%20Public%20consultation.pdf [2] UN, "United Nations Conference on Diplomatic Intercourse and Immunities," (Vienna, 2 March - 14 April 1961), accessed on June 10, 2021, https://legal.un.org/ilc/texts/instruments/english/conventions/9_1_1961.pdf [3] BIS, "Consultative Document - Prudential treatment of cryptoasset exposures," (Basel Committee on Banking Supervision, Basel, June 2021), https://www.bis.org/bcbs/publ/d519.pdf Last Friday FATF announced the recommendations will be finalized by October 2021: https://www.fatf-gafi.org/publications/fatfgeneral/documents/outcomes-fatf-plenary-june-2021.html [link] [comments]  | ||
| Got in on Crypto at all time high. Posted: 27 Jun 2021 03:04 PM PDT So I got in on crypto about 5 days before the May crash and I'm so glad I did. Let me tell you why. My long time friend finally convinced me to get into it. So I threw a couple hundred bucks into a few coins. Then the crash hit, at first I was terrified, but my friend thankfully was install there with texts about not to panic and talked me through it. Let me tell you that first week was definitely an interesting one, but I wouldn't have it any other way now. Since then I've been listening to podcasts, reading articles, asking questions and loving the daily discussion with all of you. I've been slowly dca'ing in. Buying the dips and continuing to do my research. I'm in this for long HODL so getting to experience that May crash right as I started investing made me realize that I can get through anything and any FUD that is thrown my way. Crypto is the future and I'm glad to be a part of it and this community, you guys have been great. [link] [comments]  | ||
| How Does the Blockchain Work? Blockchain technology explained in simple words Posted: 28 Jun 2021 12:50 AM PDT TL;DR : Everything you need to know about Blockchain,How the Blockchain system works,the security of the network,Blockchain Ledger,Bitcoin Mining in simple wordsBlockchain technology is probably the best invention since the internet itself. It allows value exchange without the need for trust or a central authority. Imagine you and I bet $50 on tomorrow's weather in San Francisco. I bet it will be sunny, you that it will rain. Today we have three options to manage this transaction: -We can trust each other. Rainy or sunny, the loser will give $50 to the winner. If we are friends, this could be a good way of managing it. However, friends or strangers, one can easily not pay the other. -We can turn the bet into a contract. With a contract in place both parties will be more prone to pay. However, should either of the two decide not to pay, the winner will have to pay additional money to cover legal expenses and the court case might take a long time. Especially for a small amount of cash, this doesn't seem like the optimal way to manage the transaction. -We can involve a neutral third party. Each of us gives $50 to a third party, who will give the total amount to the winner. But hey, she could also run away with all our money. So we end up with one of the first two options: trust or contract. Neither trust nor contract is an optimal solution: We can't trust strangers, and enforcing a contract requires time and money. The blockchain technology is interesting because it offers us a third option which is secure, quick, and cheap. Blockchain allows us to write a few lines of code, a program running on the blockchain, to which both of us send $50. This program will keep the $100 safe and check tomorrow's weather automatically on several data sources. Sunny or rainy, it will automatically transfer the whole amount to the winner. Each party can check the contract logic, and once it's running on the blockchain it can't be changed or stopped. This may be too much effort for a $50 bet, but imagine selling a house or a company. This explains how the blockchain works without discussing the technical details in depth, but by digging just enough to give you a general idea of the underlying logic and mechanisms. The Basics of BitcoinThe most known and discussed application of the blockchain technology is bitcoin, a digital currency that can be used to exchange products and services, just like the U.S. dollar, euro, Chinese yuan, and other national currencies. Let's use this first application of the blockchain technology to learn how it works. One bitcoin is a single unit of the Bitcoin (BTC) digital currency. Just like a dollar, a bitcoin has no value by itself; it has value only because we agree to trade goods and services to bring more of the currency under our control, and we believe others will do the same. To keep track of the amount of bitcoin each of us owns, the blockchain uses a ledger, a digital file that tracks all bitcoin transactions. The ledger file is not stored in a central entity server, like a bank, or in a single data center. It is distributed across the world via a network of private computers that are both storing data and executing computations. Each of these computers represents a "node" of the blockchain network and has a copy of the ledger file. If David wants to send bitcoins to Sandra, he broadcasts a message to the network that says the amount of bitcoin in his account should go down by 5 BTC, and the amount in Sandra's account should increase by the same quantity. Each node in the network will receive the message and apply the requested transaction to its copy of the ledger, updating the account balances. Transaction request message simplified The fact that the ledger is maintained by a group of connected computers rather than by a centralized entity like a bank has several implications: -In our bank system we only know our own transactions and account balances; on the blockchain everyone can see everyone else's transactions. -While you can generally trust your bank, the bitcoin network is distributed and if something goes wrong there is no help desk to call or anyone to sue. -The blockchain system is designed in such a way that no trust is needed; security and reliability are obtained via special mathematical functions and code. -We can define the blockchain as a system that allows a group of connected computers to maintain a single updated and secure ledger. In order to perform transactions on the blockchain, you need a wallet, a program that allows you to store and exchange your bitcoins. Since only you should be able to spend your bitcoins, each wallet is protected by a special cryptographic method that uses a unique pair of distinct but connected keys: a private and a public key. If a message is encrypted with a specific public key, only the owner of the paired private key can decrypt and read the message. The reverse is also true: If you encrypt a message with your private key, only the paired public key can decrypt it. When David wants to send bitcoins, he needs to broadcast a message encrypted with the private key of his wallet. As David is the only one who knows the private key necessary to unlock his wallet, he is the only one who can spend his bitcoins. Each node in the network can cross-check that the transaction request is coming from David by decrypting the message with the public key of his wallet. When you encrypt a transaction request with your wallet's private key, you are generating a digital signature that is used by blockchain computers to verify the source and authenticity of the transaction. The digital signature is a string of text resulting from your transaction request and your private key; therefore it cannot be used for other transactions. If you change a single character in the transaction request message, the digital signature will change, so no potential attacker can change your transaction requests or alter the amount of bitcoin you are sending. Digital Signature transaction encryption simplified :To send bitcoin you need to prove that you own the private key of a specific wallet as you need the key to encrypt your transaction request message. Since you broadcast the message only after it has been encrypted, you never have to reveal your private key Tracking Your Wallet BalanceEach node in the blockchain is keeping a copy of the ledger. So, how does a node know your account balance? The blockchain system doesn't keep track of account balances at all; it only records each and every transaction that is verified and approved. The ledger in fact does not keep track of balances, it only keeps track of every transaction broadcasted within the bitcoin network. To determine your wallet balance, you need to analyze and verify all the transactions that ever took place on the whole network connected to your wallet. Blockchain LedgerThis "balance" verification is performed based on links to previous transactions. In order to send 10 bitcoins to John, Mary has to generate a transaction request that includes links to previous incoming transactions that add up to at least 10 bitcoins. These links are called "inputs." Nodes in the network verify the amount and ensure that these inputs haven't been spent yet. In fact, each time you reference inputs in a transaction, they are deemed invalid for any future transaction. This is all performed automatically in Mary's wallet and double-checked by the bitcoin network nodes; she only sends a 10 BTC transaction to John's wallet using his public key. Blockchain transaction request structureSo, how can the system trust that input transactions are valid? It checks all the previous transactions correlated to the wallet you use to send bitcoins via the input references. To speed up the verification process, a special record of unspent transactions is kept by the network nodes. Thanks to this security check, it is not possible to double-spend bitcoins. Owning bitcoins means that there are transactions written in the ledger that point to your wallet address and haven't been used as inputs yet. All the code to perform transactions on the bitcoin network is open source; this means that anyone with a laptop and an internet connection can operate transactions. However, should there be a mistake in the code used to broadcast a transaction request message, the associated bitcoins will be permanently lost. Remember that since the network is distributed, there is no customer support to call nor anyone who could help you restore a lost transaction or forgotten wallet password. But Is It Really Safe? And Why Is It Called Blockchain?Anyone can access the bitcoin network via an anonymous connection (for example, the TOR network or a VPN network), and submit or receive transactions revealing nothing more than his public key. However if someone uses the same public key over and over, it's possible to connect all the transactions to the same owner. The bitcoin network allows you to generate as many wallets as you like, each with its own private and public keys. This allows you to receive payments on different wallets, and there is no way for anyone to know that you own all these wallets' private keys, unless you send all the received bitcoins to a single wallet. The total number of possible bitcoin addresses is #2¹⁶⁰ or #146150163733090291820368483271628301965#5932542976.This large number protects the network from possible attacks while allowing anyone to own a wallet. How do you know which transaction has been requested first?It's not secure to order the transactions by timestamp because it could easily be counterfeit. Therefore, there is no way to tell if a transaction happened before another, and this opens up the potential for fraud. If this happens, there will be disagreement among the network nodes regarding the order of transactions each of them received. So the blockchain system has been designed to use node agreement to order transactions and prevent the fraud described above. The bitcoin network orders transactions by grouping them into blocks; each block contains a definite number of transactions and a link to the previous block. This is what puts one block after the other in time. Blocks are therefore organized into a time-related chain that gives the name to the whole system: blockchain. The block chain sequence structure simplified Transactions in the same block are considered to have happened at the same time, and transactions not yet in a block are considered unconfirmed. Each node can group transactions into a block and broadcast it to the network as a suggestion for which block should be next. Since any node can suggest a new block, how does the system agree on which block should be the next? To be added to the blockchain, each block must contain the answer to a complex mathematical problem created using an irreversible cryptographic hash function. The only way to solve such a mathematical problem is to guess random numbers that, combined with the previous block content, generate a defined result. It could take about a year for a typical computer to guess the right number and solve the mathematical problem. However, due to the large number of computers in the network that are guessing numbers, a block is solved on average every 10 minutes. The node that solves the mathematical problem acquires the right to place the next block on the chain and broadcast it to the network. And what if two nodes solve the problem at the same time and send their blocks to the network simultaneously? In this case, both blocks are broadcast and each node builds on the block that it received first. However, the blockchain system requires each node to build immediately on the longest blockchain available. So if there is ambiguity about which is the last block, as soon as the next block is solved, each node will adopt the longest chain as the only option. End of chain ambiguity logic :Due to the low probability of solving blocks simultaneously, it's almost impossible that multiple blocks would be solved at the same time over and over, building different "tails," so the whole blockchain stabilizes quickly to one single string of blocks that every node agrees on. A disagreement about which block represents the end of the chain tail opens up the potential for fraud again. If a transaction happens to be in a block that belongs to a shorter tail once the next block is solved, this transaction, along with all others in its block, will go back to the unconfirmed transactions. Transactions in the Bitcoin blockchain system are protected by a mathematical race: Any attacker is competing against the whole network.Let's see how Mary could leverage this end-of-chain ambiguity to perform a double-spending attack. Mary sends money to John, John ships the product to Mary. Since nodes always adopt the longer tail as the confirmed transactions, if Mary could generate a longer tail that contains a reverse transaction with the same input references, John would be out of both his money and his product. Mary's double-spending attackHow does the system prevent this kind of fraud? Each block contains a reference to the previous block.That reference is part of the mathematical problem that needs to be solved in order to spread the following block to the network. So, it's extremely hard to pre-compute a series of blocks due to the high number of random guesses needed to solve a block and place it on the blockchain. Mary is in a race against the rest of the network to solve the math problem that allows her to place the next block on the chain. Even if she solves it before anyone else, it's very unlikely she could solve two, three, or more blocks in a row, since each time she is competing against the whole network. Could Mary use a super fast computer to generate enough random guesses to compete with the whole network in solving blocks?Yes, but even with a very, very fast computer, due to the large number of members in the network, it's highly unlikely Mary could solve several blocks in a row at the exact time needed to perform a double-spending attack. She would need control of 50 percent of the computing power of the whole network to have a 50 percent chance of solving a block before some other node does — and even in this case, she'd only have a 25 percent chance of solving two blocks in a row. The more blocks to be solves in a row, the lower the probability of her success. Therefore, transactions grow more secure with time. Those included in a block confirmed one hour ago, for example, are more secure than those in a block confirmed in the last 10 minutes. Since a block is added to the chain every 10 minutes on average, a transaction included in a block for the first time an hour ago has most likely been processed and is now irreversible. Bitcoin MiningIn order to send bitcoins, you need to reference an incoming transaction to your own wallet. This applies to every single transaction across the network. So, where do bitcoins come from in the first place? As a way to balance the deflationary nature of bitcoin due to software errors and wallet password loss, a reward is given to those who solve the mathematical problem of each block. The activity of running the bitcoin blockchain software in order to obtain these bitcoin rewards is called "mining" Rewards are the main incentive for private people to operate the nodes, thus providing the necessary computing power to process transactions and stabilize the blockchain network. Because it takes a long time for a typical computer to solve a block (about one year on average), nodes band together in groups that divide up the number of guesses to solve the next block. Working as a group speeds up the process of guessing the right number and getting the reward, which is then shared among group members. These groups are called mining pools. [link] [comments]  | ||
| SafeDollar ‘stablecoin’ drops to $0 following $248 million DeFi exploit on Polygon Posted: 28 Jun 2021 02:38 AM PDT
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| Posted: 27 Jun 2021 07:36 AM PDT Withdrawal fees, trade fees, network fees, air fees. If it's a token, it's even worse, requiring two withdrawals (ERC20 token + Ether, or the equivalent of the used network). The amount of steps required to use layer 2 solutions or things like TLM and WAX are just so damn high and everyone along the way takes a cut. This isn't how crypto is supposed to be. Currently, instead of paying one central party, there's a dozen different parties all wanting a share. Sending money via banks cost ZERO and in some areas instant payments are being rolled out, such as SEPA instant payments. It should be in everyone's interest to make crypto usable, but all these fees for using crypto is really frustrating and likely slowing down the adoption. [link] [comments]  | ||
| It's so funny how Unpopular crypto is. Posted: 27 Jun 2021 09:21 AM PDT I love strolling through reddit and reading all the crazy shit people make up about crypto as a whole they have zero clue on, all the same bullshit FUD you hear day in day out, we're so far from main stream it's crazy. If you ever think you're late, you really aren't, it's amazing how many people actually despise just us as people who enjoy or understand a bit about crypto. I don't give a shit what crypto you're into, Blockchains are going to change the world. [link] [comments]  | ||
| If you're young and thinking of investing in crypto, please take a second to read this. Posted: 28 Jun 2021 01:40 AM PDT I'm sure this will sound pedantic but with all the excitement lately, I'm seeing a lot of posts from people in their 20's and even teens talking about investing large sums in crypto. Please keep in mind that this is a high risk. That's not to say you shouldn't take some of your hard-earned money, do your research and get involved. This community is amazing, dynamic and there's a ton of potential to make great returns. However, high-risk investments should never be your whole portfolio. It should be the smallest part. Make sure that you're setting aside money in a Roth IRA, contributing to your 401k, Vanguard funds, etc. The boring stuff. The stuff that grows slowly over a lifetime. Don't just diversify your coins, diversify your whole portfolio. It's something I certainly wish I'd tackled at a much younger age. Believe me, you'll thank me later. [link] [comments]  | ||
| Mexican Billionaire Says His Bank Is ‘Working’ to Accept Bitcoin Posted: 27 Jun 2021 11:27 AM PDT
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| Bitcoin flips Tesla by market cap... Sorry Elon! Posted: 27 Jun 2021 06:21 PM PDT
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| Even Gold-Obsessed Indians Are Now Pouring Billions Into Crypto Posted: 27 Jun 2021 07:09 PM PDT
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| Posted: 28 Jun 2021 01:40 AM PDT Although it's not perfect, the BBC is generally more reliable than most big media outlets, but over the past few years I've been sorely disappointed in its coverage of crypto (focused 99% on BTC). Today was a pretty good example. They ran this story with the headline:
It's a pretty startling piece of news to read first thing in the morning, and a bit surprising too. The first line goes:
One could be forgiven for thinking that Binance was now banned in the UK. You have to read 'til about halfway through the article to find that all of the stuff that came before it was pure FUD:
So is Binance banned in the UK? No. Leverage trading is banned - just one of the many services that Binance provides. This is just one in a litany of articles demonstrating a shocking anti-crypto bias from the BBC. A few weeks ago, they ran a story about how Bitcoin was to blame because a woman sent all her life savings to a man pretending to be [insert name of Doge-loving billionaire douchelord]. An internet scammer told her that if she sent him money, he would send back even more. When there's positive news about Bitcoin, they ignore it or distort it to remind the public that crypto is all a scam, and whenever something mildly bad happens, they blow it out of all proportion. Shame on the BBC for this irresponsible behaviour. I know they are not the only news outlet that does this, but I would have expected better from them. [link] [comments]  | ||
| Posted: 27 Jun 2021 11:01 AM PDT
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| My dad hates crypto and pretends to know what it is. Posted: 27 Jun 2021 05:53 PM PDT Very sorry for the repost. This post got removed on my new account because it's not 60 days old. Last year I got into crypto and I decided to not tell anyone except my mom about it because I know she's open and interested. Today was the first day I told my dad about Crypto, I did not tell him to invest or anything but he was talking about someone who doesn't know what to do with his money, and I said maybe he could invest in some crypto or something? My dad said "You don't have money in that bullshit, do you?" I said that I do and I knew what was coming, half an hour of calling me an irresponsible idiot and nonsense about "Wow they know how to find idiots like you" and how this isn't regulated by anyone and it could be hacked etc etc (clearly he knows nothing). I did not argue back, never did actually since I turned 20. Knowing my dad, he can't be convinced that I might know something beneficial that he does not know about, but if one of his friends told him about Crypto he'd listen lol. I decided to say I don't own any crypto and don't plan on buying any, just so I can never hear him talk about it again lol. If he does not act like that, I wouldn't have to lie. Anyone experienced something similar? Edit: It kinda hurts more now, knowing that I probably experienced this alone, but I am also glad that people in general got parents who are normal people. [link] [comments]  | ||
| The best way to read r/cc is to sort by "controversial" Posted: 27 Jun 2021 09:52 PM PDT If you read sorted by "best" or "top" you're only going to see the echo chamber side of this sub. When you say something funny, or post a positive news article or rarely, post something that everybody can agree on there is a flood of upvotes, sending your post to the top. Say something despised on this sub, spam, schill, post FUD or even legitimate bad news and here comes the downvotes burying your post in r/cc hell to never be seen again. But purgatory is this place where there is engaging conversation and debate where upvoters and downvoters meet in a draw and unfortunately banish the post from the top, even though the conversation is way more engaging and points are argued well. That purgatory can be found when you sort by controversial. I suggest you check it out. [link] [comments]  | ||
| Posted: 27 Jun 2021 03:20 AM PDT
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| Summary of “The Triangle of Harm” by Vitalik Buterin Posted: 27 Jun 2021 05:31 PM PDT This is my attempt to summarize an early blog post by Vitalik Buterin. This is a learning exercise for me and critiques/corrections are welcome. If you think something can be summarized better, please comment. Link to the article - July 6, 2017
1) Minority attacks the protocol
2) Minority attacks majority
3) Majority attacks the protocol
4) Majority attacks minority
Casper is the implementation of Ethereum converting it from Proof of Work to Proof of stake Casper's goal is to make attacks on the protocol very expensive, while limiting the possible damage to victims. The Four Attacks in Proof Of Work
In contrast, Casper punishes equivocation. Sending conflicting messages, even if one aligns with consensus, is very heavily penalized. In finality reversion attacks (a type of 51% attack), the attackers are penalized and everyone else is left untouched. Casper strives for this property of being very expensive to attack and avoiding allowing the majority to cause the minority to lose money. Two More, More Challenging Attacks
There exists a dichotomy in each of these attacks: speaker/listener fault equivalence
The market from around the time this was written. [link] [comments]  | ||
| Posted: 27 Jun 2021 04:33 PM PDT
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| 30 Bitcoin miners receive license in Iran amidst BTC hashrate drop Posted: 28 Jun 2021 02:39 AM PDT
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| A collegue joined a scam coin. Told him the truth Posted: 27 Jun 2021 11:28 PM PDT A collegue of mine just told me he had invested into Crypto for a friend of his. And he'd get a portion of the profit. I said nice, but be aware of investing for others, it's usually a really bad idea. To that he said. Don't worry, we invested in a safe bet. And of course I was curious as to which he thought was a safe bet, so I asked him. And oh my.. He invested into Safemoon.. Told him that coin was even worse than titan. And he should've done his research before invested. Now he's mad at me for saying it. At some level I hope he gets burned so he can learn to research things, but on the other hand it's sad to see and know, some people think it's a "safe bet" [link] [comments]  | ||
| Don't buy ICP! Even if you're tempted to think it will go back up to its listing price. Posted: 27 Jun 2021 09:37 PM PDT I'm not sure if everyone has heard of this coin but checkout ICP charts, it went as high as 2800 on listing day and now sits around 30-40 dollar range. Even if you buy now, there are early investors that bought at $0.03 (someone correct me if I am wrong). So there are investors with massive gains at this price level. Also this coin has a record for the highest list and dump which is over 95% in about a month. Becareful of coins like this is all. If anyone has any other technical and shady issues with the coin do post, we need to make sure people know what's up with these coins because I think coins like this give crypto a bad name in general. [link] [comments]  | ||
| Posted: 28 Jun 2021 12:07 AM PDT I'm pretty excited with this project and wanted to share it with you guys. This is a trading bot that analyses reddit post sentiment and automatically buys the coins found in as keywords in the analysed posts. How it works The bot has several customisation options. It takes posts from cryptocurrency subreddits, analyses the title and body and looks for crypto keywords. Once it found a matching keyword, it passes the title and body of the post to a sentiment analysis library, and returns an average sentiment for all the posts matching that keyword If this is found to be positive, it will place a buy order on Binance. It also comes with several customisation options so you can choose how you want to use this:
You can also specify how often to check for posts, as well as the size of each trade placed. I added a test mode so it can just simulate trades, so you can see how it would work in a live market, but without using real funds. I'm using the praw library to connect to the Reddit API, and the nltk library for sentiment analysis. Anyway, I hope you find it useful, or at least interesting to try out. Here's the GitHub repo for the project: https://github.com/CyberPunkMetalHead/reddit-cryptocurrency-trading And I also made a guide on how to set this up and get it running if you need more info: [link] [comments]  |
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