Vitalik Buterin, the 23-year-old creator of Ethereum, has recently stated that he may have created too much Ether.
Having a talent not only for programming but for also understanding and explaining decentralized technologies, Vitalik Buterin has contributed to the crypto community both as a writer, having co-founded Bitcoin Magazine, and as a developer, having participated in many projects until finally settling down as the main developer of Ethereum.
His recent statement about the scarcity of Ether comes in line with concerns about the ICO market: “I’m concerned a lot of these token models aren’t going to be sustainable”. There is indeed a flood of digital tokens being created and the majority of them are based on the Ethereum Blockchain (ERC20).
“It is an established fact that ninety percent of startups fail. And it should also be an established fact that 90 percent of these ERC20s on CoinMarketCap are going to go to zero.”
Vitalik gave some interesting insights last month at the ETHWaterloo hackathon as well. He said that digital tokens are in their early phases, where there is still a lot of experimentation going on, and some of them aren’t yet based on fundamental economic principles. “There are some good ideas, there are a lot of very bad ideas, and there’s a lot of very, very bad ideas, and quite a few scams as well.” He named this current phase of development as “tokens 1.0” and that we will evolve to “tokens 2.0” as projects mature in quality.
He also emphasized the centralization of development in ICO projects as a serious flaw and that, although the infrastructure that supports the ERC20 tokens is decentralized, the projects in themselves are run by closed groups of developers and are not really Decentralized Autonomous Organizations.
Plans For Scarcity
In order to create scarcity, Vitalik is contemplating the idea of imposing fees on applications built on the Ethereum Blockchain. Those fees would then burn, or destroy, Ether tokens over time. He further stated: “If the token is being burned, then you have an economic model that says the value of the token is the net present value of basically all future burnings,”. Without this, “it’s just a currency that goes up and down. It feels kind of like voodoo economics and the price of the token isn’t really backed by anything,” and “That’s a very spooky thing.”.
Another way to limit the supply is to shift the confirmation of transactions from a proof-of-work to a proof-of-stake model where stakers receive the network fees only. This might happen as early as the end of this year according to Vitalik.
It seems Vitalik's intention for Ethereum scarcity might have come to fruition, although not for a good reason. A major vulnerability found on the Parity wallet has frozen hundreds of millions of dollars of Ethereum.
This is the second time a problem like this happens with Parity. Last July, 150,000 Ether (worth $30 million at the time) was reported by the company as stolen. The bug that caused it was then solved, or so it was thought. The new vulnerability affects multi-signature wallets that were deployed after July 20, the date the bug was “solved”. It still unclear, but ICOs that were held after that date may also be impacted. Although there are no reports of lost or stolen coins, some estimates say that 500,000 Ether ($154 million) funds are frozen.
Earlier on Wednesday, Mike Belshe, chief executive of BitGo and project director for SegWit2x, declared that the contentious Bitcoin protocol upgrade had been halted considerably as a result of lack of consensus. The Hard Fork which intended to increase Block size to 2 Mb was scheduled for November 16.
Many have hailed the move as one in the right direction. Akin Fernandez, who is one of the ardent opponents of the move has referred to it as "anti-Bitcoin, and the people supporting it couldn't articulate why they're doing it. Most of them were being misled and have made an honest mistake because they trusted bad oracles."
Altcoins which have been declining based on more money entering into Bitcoin in an anticipation of buyers getting free coins after the fork began to upsurge in value. Bitcoin immediately experienced a slight fall in price from the $7400 to the $7100.
The uncertainties surrounding the split have subsided as more energy are now being breathed into many altcoins. Market response is so delightful looking at how its reflection is at the moment.
At the time of filing this report at 14:00 GMT+2 on Thursday, apart from Bitcoin, only two cryptos on top 10 were down with losses. Bitcoin Cash and Litecoin, the former which have seen a terrific growth both last and this week shed 0.99 and 0.69 percent sequentially.
The biggest winners at the moment at top 10 are Blockchainless IOTA with 31.73 percent to at number 10 as NEO bags 21.54 percent. Bitcoin actually sank 4.63 percent but it is too early to make any meaningful conclusion.
On the top 100, only 10 Coins are in the red. Notable growth is recorded by 13th ranked Vertcoin with 43.21 pumps.
Moreover, Waves is up 36.01 percent and Ark is exhibiting 33.65 percent swelling rate. Moreso, Ethereum Classic which enjoyed a wonderful time last week has lost top 10 status but was slight up with 0.02 points at number 11.
Did the fiasco of Segwit2x bring a new blood into the market? Well only time will tell, but for now, all is well for cryptosphere and once again our detractors will have to walk with their heads bow down in shame.
Komodo, the native cryptocurrency in the Komodo Platform, was recently added to Binance, a popular altcoin exchange led by Changpeng Zhao. The addition allows Binance users to buy and sell KMD for BTC and ETH, with both pairs currently available on the exchange.
To celebrate the addition, Binance and Komodo are running a promotional campaign that will see gifts delivered to KMD traders. The official announcement reads:
“To celebrate KOMODO listing on Binance, we have committed some presents to give away to our fans worldwide. We will rank users from 1 to 5 in terms of the total KMD volume traded on your account (includes both buys and sells) during the competition period.”
The prize list includes a Samsung S8 Smartphone, a Samsung Gear S3 Smartwatch, KMD coins, and a Komodo T-shirt. According to Binance, the prizes will be distributed on the 17th of November.
Exchanges Rush to Add Komodo
Most recently, and probably due to the marketing efforts being undertaken by the team, exchanges have rushed to add KMD to their exchanges. It seems that Komodo is becoming extremely popular to the east with multiple exchanges in South Korea adding trading pairs for the KMD coin. Among them is Upbit, a South Korean exchange launched by Bittrex in partnership with Kakao.
The Upbit addition will expose traders in the region to the Komodo cryptocurrency, allowing them to buy or sell it with the national currency, the south korean won. Further expanding the reach of KMD in the country, Coinrail, another South Korean exchange, has also added KMD markets.
The team has also announced the upcoming listing on HitBTC, a widely popular crypto-fiat exchange that is known for its vast selection of trading pairs.
Not only is KMD being added to exchanges, but new and more efficient tools for traders are also being made available, including CryptoTrader, an algorithmic trading platform for cryptocurrency traders that provides them with “cloud-based automated trading solutions”.
As new exchanges continue to add Komodo to their platforms, the team has also made progress on its own decentralized trading platform, the BarterDEX. Powered by atomic swaps, the BarterDEX platform will allow users to buy and sell cryptocurrencies and fiat tokens with no third party or proxy tokens involved.
The latest Windows release for the BarterDEX software has also granted users a new Graphic User Interface (GUI) that is both simple and functional. Not only will BarterDEX be the first decentralized exchange of its kind, it will also allow users to participate in the first ever decentralized Initial Coin Offering (dICO), launched by Monaize.
The dICO will allow users to buy Monaize (MNZ) tokens with Bitcoin and Komodo through the use of Atomic Swaps. Issued through Komodo’s assetchain technology, the MNZ token will use the same dPoW protection employed by KMD itself and will also leverage an innovative on-demand block generation system for mining.
A guide on how to participate in the first dICO can be seen here. You can also check out the recent AMA session where the KMD team delves into more details about the BarterDEX and dICO technologies.
The WAVES platform consists of a Decentralized exchange where multiple Waves tokens can trade with each other. This is achieved through proxy tokens, tokens that are backed 1:1 and are interchangeable through gateways. Currently, there is two fiat pairs, USD and EURO, as well five cryptocurrencies, BTC, ETH, LTC, ZEC and of course WAVES and its custom tokens like Mercury, Waves Community Token and many others. The next fiat gateway installment is likely going to be the Turkish Lira, provided by a Turkish company named Digilira. The most interesting part is that this is the first fiat gateway pushed by a private company, rather than by the WAVES team.
Interested to find out more, we asked the owner of Digilira, Serkan Bayar, about the motivations behind his new company, how he got here, the cryptocurrency situation in Turkey and more.
Q: Tell us a little about Digilira
A: Digilira is a platform that allows you to convert Turkish Liras (TRY) into cryptocurrency tokens named wTRY. This wTRY token, issued on top of the Waves platform, is backed 1:1 by real Turkish Liras. Digilira will serve as a gateway for both of them, between real Turkish Liras and wTRY tokens. The Digilira company name is a shortened version of Digital Turkish Lira. We call it Digilira because it sounds euphonic. Our company was established on October 10th, 2017. Our company aims to create and sell a value in an electronic environment, to establish and operate websites to carry out these purposes, register members to these websites and earn income from these services.
Before the establishment of our company, we asked the “Banking Regulation and Supervision Agency” in Turkey about our company’s business activity. The response was optimistic and they only requested us to warn our users about cryptocurrencies volatility and requested us to prevent AML (Anti-Money Laundering) activities. So we will warn our users about volatility and we will request their identities for KYC/AML policies.
We will request people to use their real names while they are signing up for our service. We have access to the national judiciary informatics system, so we will be able to check if the given ID is fake or not. We will not accept deposits if a deposit doesn’t match the member’s name. We will not accept deposits if the deposit is made from an ATM. If this occurs, we will issue a full refund. Users will able to withdraw only from accounts that match with his name and ID.
After we got a good response from Banking Regulation and Supervision agency, we started to get in touch with banks. We prepared a document and explained to them about our intentions and services. They sent our documents to their head offices. Some banks have a blockchain management unit and we got responses from those units or the head offices. Their approach was positive and they asked more about our KYC/AML policies.
As of now, we have an agreement with 6 major banks in Turkey, and some more are underway. Those banks are, Turkiye Is Bankasi, Denizbank, Garanti, Akbank, Ziraat Bank and QNB Finansbank.
Q: Why did you choose the Waves platform for your upcoming Turkish Lira Gateway?
A: We believe in the Waves Platform as we are early adopters. Waves have a lite client so a regular user of Waves Platform doesn’t need to download the whole blockchain to operate. Also, Waves has a built-in DEX. You can easily store your assets on the Waves Platform and trade safely.
In Turkey, there are a lot of Waves supporters. There are 250 pages written in the Turkish Waves thread.
After the demand for Waves, I personally opened a blog site to spread the Waves Platform for the Turkish people. www.wavesturkiye.com
In Turkey, there are 3 major exchanges where you can buy and sell Bitcoins. Those are Paribu, BTCTurk and Koinim. These 3 exchanges have a total of 15 million dollars volume on average every day. All of these exchanges are centralized. By using Digilira as a gateway service, our customers will have lots of benefits.
Here they are:
Get Rid of High Commissions
Today on average, a 0.4% commission is paid on a centralized exchange. For example, a person who trades with 10 Thousand Turkish Liras pays a commission of 40 Turkish Liras when he gets Bitcoin from a centralized exchange in Turkey.
Digilira will allow our customers to use the Waves Platform’s decentralized exchange so users can trade with minimum fees (0.003 WAVES). For example, a person who trades 10 Thousand Turkish Liras only pays a total commission of 0.5 Turkish Liras.
Don’t Stick with Bitcoin
All other exchanges in Turkey are legal and they pay taxes from profits. When you decide to buy Bitcoin, you can buy directly from those 3 exchanges. But if you want to buy any other alternative currency, you have to transfer your Bitcoin to other exchanges. This is where the problem begins. You can’t buy any alternative currency with fiat money in Turkey.
Digilira will offer our customers to buy WAVES, Bitcoin, Ethereum, LiteCoin, Zcash, WavesGo, MobileGo, Primalbase, ZrCoin and more using our wTRY proxy token.
Time is Cash
It is very time-consuming to send Bitcoin from one exchanges to another when the markets are very fluctuating.
The time lag between sending and receiving Bitcoins from one exchange to the next can lead to losses, especially when you are dealing with large capital.
With www.digilira.com, you can buy or sell any cryptocurrency with your own currency (Turkish Lira) from the Waves decentralized exchange. In this way, it will be much faster to move from one cryptocurrency to the next.
Users of common centralized exchanges are often complaining about the lack of orders, site upgrades without prior announcement, and inability to access the site temporary especially when it is volatile.
www.digilira.com offers customers to trade on the decentralized exchange built in the Waves Platform to remove centralized exchange uncertainty.
Centralized exchanges keep your private keys and in the event of hacks, exchanges can lose their private keys.
By using digilira.com’s service, you will trade on a decentralized exchange, meaning, you will have full control of all your crypto holdings. Digilira Technology Corp is 100% legal and will pay taxes to the Republic of Turkey.
Q: What has the process been so far to get the gateway up and going?
A: After we decided to build the Turkish Lira gateway for Waves, we decided to name our brand as “Digilira”, then we applied at the Turkish Patent and Trademark office to get a patent for our brand. Luckily, the “Digilira” brand wasn't taken before we got our patent but there was a barrier in front of us. The URL of www.digilira.com was already taken. We reached out to the owner and started to bargain. We agreed on the price and we bought the URL.
With our company now established, we applied for the www.digilira.com.tr (as only legal companies can get the .tr URL) but we will use www.digilira.com for our services.
Negotiating with banks was the longest step as we had some requirements. We requested banks to give a live feed of our accounts so we can track deposits live. It took around 4 weeks to deal with banks in regards to this issue. Now banks will provide data for specified IP addresses where our servers are located.
We also got an agreement with a firm called Manim. This firm will listen to banks and provide JSON data for us. This way we will collect deposit requests from digilira.com then JSON data of the deposit. If this data matches then we will send the wTRY automatically. So the deposit process will be autonomous but the withdrawals will be manual.
Q: Have you discussed with the WAVES team about the gateway? What was the response from the WAVES team like?
A: We are in touch with Waves team and people who have close relations with the Waves team in the slack channel. Marc Jansen (Hawky), Martin (mx), Cyrille Wetter (karlkarlsson) supported us. After the establishment of the company, we sent an e-mail to Alexandra Pestretsova. She then forwarded our e-mail to Vadim Radskiy (Integration manager) to arrange a meeting at Waves Headquarters on the 11th of November.
We are aiming to come back with an official announcement for Turkish Lira Gateway.
Q: What is the cryptocurrency situation in Turkey? Do you anticipate there will be a lot of demand for your services?
We know some banks in Turkey are doing research on blockchain technology. A construction firm in Turkey named MiaVita started to sell their houses with Bitcoin. http://miavita.com.tr .
The cryptocurrency sector is on the rise in Turkey. We wanted to act fast and bring the real Turkish Lira into the cryptocurrency sphere. We are now a legal company and we will pay taxes from commissions we get. As we said before, on an average day Turkish exchanges have 15 million dollars volume. We are aiming to get 10% in 3 months. We are now collecting e-mail addresses to inform our customers when we go live. Now we have over 450 e-mail addresses.
Our topic on bitcointalk has 131 replies and almost everyone is excited and wants to use our services.
Q: Thank you for your time. Lastly, do you have an ETA for your product?
We are almost ready to go live, just waiting to get permission from Waves Team. If everything goes well in Moscow we are planning to go live by the end of the November.
At a time in which Bitcoin’s controversial hard fork, SegWit2x, gets called off, Google Trends data shows that people all over the world are now searching for the term “buy bitcoin” more than they are for “buy gold.”
The cryptocurrency’s rally, that led to a new all-time high above $7,800 this week, is seemingly drawing increasing interest from investors all over the world who now see bitcoin as a more interesting investment than gold. Searches for “buy bitcoin” had previously exceeded searches for how to purchase silver, but the cryptocurrency’s interest partly comes from gold’s decline.
According to Bloomberg, concerns over Brexit and Catalonia’s push for independence failed to increase demand for gold, and as the dollar strengthened and global equities set new records the precious metal fell behind. So much so, the amount of gold changing hands on BullionVault’s trading platform dropped by nearly a third of its 12-month average.
BullionVault’s research director, Adrian Ash, commented on bitcoin’s new heights and gold’s decline, stating:
“With the U.S. stock market setting fresh all-time highs day after day, it’s no surprise gold prices have retreated. Some investors are also being distracted by the noise around Bitcoin and other cryptocurrencies. Altogether, that’s made interest from new gold investors the weakest since the metal’s half-decade price lows of end-2015.”
Gold recently dropped by about 6 percent, making this year’s gain fall back to 11 percent. Bitcoin, on the other hand, surged from about $970 to over $7,200 at press time, meaning it had over 13 times the advances of the best-performing commodity Bloomberg tracks.
Although “buy bitcoin” surpassed “buy gold” in search queries, BullionVault’s Gold Investor Index, which measures the number of buyers and sellers, still points to a slightly higher number of buyers than of sellers.
Google Trends’ search data reveals that the U.S., the U.K., Mexico, Canada, Australia, India, and others still show a larger interest in gold investments, while countries such as Chile, Venezuela, Russia, and most of Europe as well as a few African nations show an increased interest in bitcoin.
Notably, one of the queries Google suggests as being related to bitcoin is that for “BitConnect,” a platform that allows users to invest in BitConnectCoin to earn interest on their investments. BitConnect is widely believed to be a Ponzi scheme, so much so Malwarebytes recently added it to its “blocked websites” list.
The consortium is led by the big oil companies BP and Shell as well as some banking institutions (ABN Amro, ING, Societe Generale) and trading houses (Gunvor, Koch Supply & Trading, Mercuria).
“Marquee brands and competitors in the energy, trade and banking industry sharing one vision gives us a great opportunity to transform processing in the energy trade commodity sector.” - Anthony van Vliet, ING’s global head of trade and commodity finance.
The goal is to create a digital platform, based on blockchain technology, that will manage physical energy transactions from trade entry to final settlement. This new platform is expected to be up and running by the end of 2018 and the consortium has also expressed their intention to have this new way of trading energy replace the current model:
"Over time, the new venture intends to lead the migration of all forms of energy transaction data to the blockchain, improving data quality, further strengthening security and increasing the speed of settlements industry-wide, while reducing the cost for industry participants."
Advantages Of Adopting Blockchain
Adopting a decentralized ledger would increase transparency, eliminating any confusions over ownership of a cargo and giving a more exact management of risk, as there are accurate timestamps to each part of the trade
A decentralized platform could also be useful in saving time and costs, by reducing bureaucracy and bringing automation to the trading. The adoption of smart contracts would reduce paperwork and middle-man fees. There are also no settlement risks, since transactions are cleared instantaneously. The group further stated: "The intent is to move away from traditional and cumbersome paper contracts and operations documentation to secure, smart contracts and authenticated transfers of electronic documents".
Finally, a decentralized database is more secure and less prone to cybercrime. This is because the database is not stored in one central place, it is immutable and shared with all members at all times.
If you are interested you can check out this extensive report from Deloitte, showing the potential applications of blockchain in the oil and gas market.
Big Oil and Blockchain
Given the advantages above, it’s a no-brainer that companies like BP were already testing the technology. In May there was also another consortium with a similar plan, this time between 23 European energy trading firms. Their peer-to-peer network, an enhanced version of Enerchain, was designed by German IT company PONTON and allowed the first electricity trade via blockchain. The trade happened last month between energy companies E.ON and Enel live in front of the public at EMART Energy in Amsterdam, an annual event that gathers energy traders.
As the Waves platform grows in maturity, the ecosystem surrounding it becomes more diverse by the day. As the CEO of the platform Sasha Ivanov once proclaimed, he realized that any business or organization, no matter how big or small, no matter what industry, could find a useful purpose for the blockchain. The Waves platform, as it stands, provides a simple solution that makes token creation.
One untapped industry yet to move to the blockchain is that of the coffee industry. With coffee being the second most sought after commodity in the world, with a market cap of $48 billion dollars, it was time for this special bean to move to the blockchain.
CoffeeCoin is doing just. In order to get a better insight into this new Waves token, I chatted with the owner of CoffeeCoin, James Allen. The interview covers how he got to where he is now, to the cryptocurrency situation in Indonesia, to obviously the utility behind the CoffeeCoin itself.
Upon reading the interview, it will become very apparent that James has been driven solely by his passion for coffee and the relationships he has built throughout his journey. It is also wonderful to read how a real-life problems are truly being solved by the blockchain.
Q: Tell us about yourself, how you got into the coffee business and what brought you to blockchain technology.
I first learned about Bitcoin in 2012 while living in New Zealand. I had been hearing about this new technology on a number of the free-market websites and newsletters I followed. To me, the private, decentralized peer-to-peer payment solution Bitcoin offered sounded like the perfect alternative to the nightmare the central banks had created in our world. It was then I downloaded my first Bitcoin wallet and purchased my first Bitcoins – they cost around USD $18 dollars each at the time – and started learning about and experimenting with blockchain technology.
In early 2013, my family and I left New Zealand for what was supposed to be a one-month trip to Bali, Indonesia. We fell in love with the place immediately though and ended up staying a year straight. (We’ve made it our part-time home ever since.)
Indonesia is the fourth largest producer of coffee in the world – so as a life-long coffee fanatic, I decided while I was there I'd use my free time to learn all I could about the production end of the coffee chain.
In Bali, I began visiting coffee farms there and in neighboring Java, meeting the incredible local farmers and their families and learning hands-on all I could about coffee growing, harvesting and processing. Soon I bought a locally-built coffee roaster that could roast 1 kilogram at a time. I began roasting coffee direct from the farms I visited, brewing and sharing the coffee with my friends in Bali. Many of my friends were also getting into Bitcoin – so this all came together during our coffee roasting, brewing and drinking sessions at our villa.
I learned quickly about the struggles coffee farmers were having – especially in terms of getting a fair price for their coffee. It seemed to me a lot of this had to do with inefficiencies in information flow, logistics, and payments throughout the supply chain. In Bitcoin and the decentralized ledger features of the developing blockchain technologies, I saw a potential for these inefficiencies to be addressed.
Initially, I felt I could help by showing people how Bitcoin could be used in real-world commerce. Bitcoin's first main feature – as a decentralized global digital currency - meant that issues with multiple currency transfers and exchanges through the slow and expensive traditional banking system could be overcome by using Bitcoin instead of fiat.
All this led to “The Roast Station Project” in late 2013. I set up a simple webpage offering packages of fresh-roasted, direct from source Bali Arabica coffee in exchange for Bitcoin. I advertised on several of the Bitcoin discussion forums I was a member and got some additional press – all which generated quite a number of sales during the few months I ran the project. I received payments in Bitcoin – direct to my Bitcoin wallet - from buyers around the world.
At the time, there was no Indonesian Bitcoin exchange yet – BUT Bali was already a hub for other digital nomads – some who were more than happy to exchange local currency with me for bitcoin in-person. I was then able to purchase green coffee directly from the farmers for cash and roast and ship it to Bitcoin-supporting coffee drinkers around the globe. Here I was - using this amazing new technology, connecting local producers with global buyers and making global sales transactions – all without a single bank involved.
At that point, I was as hooked on blockchain tech as I was on coffee!
In early 2014, soon after the end of the Roast Station Project, the first Bitcoin bubble occurred. During that time, Bitcoin's value in USD terms increased to over $1000. Before the first bubble burst, I used some of my bitcoin holdings to fund additional travel research into both the coffee supply chain and blockchain technology.
I visited coffee farms in Costa Rica, Indonesia and Thailand and attended many coffee and bitcoin-related conferences, meetups and trade shows in Singapore, Taiwan and Malaysia.
From then on, I was determined to find more ways to use blockchain technology to improve the coffee supply chain.
Q: What current inefficiencies are there in the current international trade for coffee?
The inefficiencies are many - but it boils down to slow and large companies and too many middlemen using too much-outdated technology.
The international coffee trade has been around for nearly four-hundred years - some of the oldest and largest companies have held a stranglehold on the market for a long, long time. It has served them well to prevent farmers from knowing the value of their crops and to keep them in a state of perpetual debt with small yearly loans that they must struggle to pay back. All this has prevented both the quality of life for farmers and the quality of coffee from improving quickly.
That said, these companies have signed their own death warrant though, as they did not keep up with new and developing technologies - in fact, many of the largest coffee traders are still using FAX machines.
Meanwhile, small farmers now have smartphones and access to world coffee market prices and consumers are becoming more aware of how direct-sourced coffee benefits the producers. The time is right for a new way of buying and selling coffee.
Q: How do you aim to fix these inefficiencies with CoffeeCoin?
CoffeeCoin works as a "single currency" for rapid global transactions - which removes issues and loss of value in the global specialty coffee supply chain due to the current use of multiple currencies and exchange fees. CoffeeCoin (COF) can be traded easily and freely on the Waves Decentralized Exchange (DEX). This means, for example, a producer in Indonesia can sell his coffee directly to a buyer in America without going through the traditional system requiring banks, loans and middlemen. The producer receives a better price for his coffee, the buyer receives a direct-trade high-quality specialty coffee.
As a utility token on the Waves network, CoffeeCoin transmits and preserves verifiable data on the blockchain ledger. This means it can be used for coffee contracts, pricing quotes, origin details and verification, shipment tracking and more. This can reduce or even eliminate the need for the multiple communications via fax, phone and email that are standard in the industry now. As the blockchain ledger is decentralized, data is immune from loss and alteration common to data stored on centralized servers.
Farmers and roasters can use CoffeeCoin to crowdfund sales and purchases of specialty coffee lots - so they don't have to rely as heavily on loans and middlemen to keep their businesses and families afloat. This raises the value of the coffee for farmers, keeps both the farmers and roasters out of debt and increases business for the importers and exporters as they are still needed to help with the shipping logistics and customs paperwork for the coffee from source to roaster.
Small-batch roasters will now have access to micro-lots of specialty-grade beans more directly from those willing to offer them. This opens up the door to thousands of boutique roasters who previously had limited access to smaller volumes of specialty grade beans. It also offers coffee farmers and cooperatives more opportunities to sell their best beans at a higher premium.
To showcase how the CoffeeCoin token can perform these functions, we have already developed our first working service. As of Oct. 16, 2017, our functioning prototype of CoffeeChain is live and is already using CoffeeCoin as the utility token for transmitting and preserving green coffee buy, sell and service offers on the blockchain.
Q: I see you are based in Malaysia and Indonesia, what is the state of blockchain technology adoption in these countries? Is there a big demand for Bitcoin and other alternative currencies?
Indonesia is not only the 4th largest producer of coffee in the world, but also has a huge crypto supporting community. In fact, just last month Bitcoin.co.id, the country’s largest crypto exchange, added the WAVES token. Sasha Ivanov, the founder of Waves spoke at the recent blockchain conference in Bali Indonesia and while there he spoke with the head of Bitcoin.co.id and begin making plans to add an Indonesian Rupiah gateway to the Waves client too.
All of this bodes extremely well for the CoffeeCoin project, as we have many coffee sources in Indonesia. We will be able to use our platform right away for direct-from-source coffee transactions using CoffeeCoin, convertible instantly to Waves and then into local currency - all in-app - thanks to these developments.
After our token sale, once CoffeeCoin has liquidity on the Waves Dex, we plan to approach crypto exchanges in Indonesia and other coffee producing countries to have CoffeeCoin listed as well.
Being based in south-east Asia allows us access to not just Indonesian coffee, but also micro lots of high-grade Arabicas from Vietnam, Laos, Myanmar, Philippines and Thailand. Also, Singapore is at the heart of this region and gives us access to global coffee logistics providers along with a massive and growing community of blockchain developers and a crypto-friendly legislative regime.
Roasting in Thailand
Q: Why did you choose to host your coin on top of the Waves platform?
Waves were the first platform to offer what we needed for our project - a way to easily create a token that could be used both as a crypto-currency voucher and as a utility token that could transmit and preserve additional data on the blockchain. It only took a few minutes to create our token and our tech partners at Oceanlab.eu were able to easily integrate our token into our prototype coffee trading platform at https://CoffeeChain.io.
Furthermore, once the Waves NG protocol is live, Waves will be the world’s fastest blockchain, which means we’ll be able to scale our CoffeeCoin-powered coffee trading platform and tools to handle more transactions in the future.
Coffee Presentation in Kuala Lumpur
For full details and instructions on participation, along with our whitepaper and direct-from-farm videos please visit https://CoffeeCoin.io
BitGo CEO and co-founder Mike Belshe recently announced the end of the SegWit2x hard fork on the SegWit2x mailing list, effectively calling off what some considered the resolution of a three-year-long scaling debate revolving around allowing more transactions through the network. SegWit2x was set to increase block sizes to 2 MB at block 494784, expected to occur around a week and a half from now.
The announcement that called off the hard fork was signed by various SegWit2x supporters, including Xapo CEO Wences Casares, Bitmain founder Jihan Wu, SegWit2x lead developer Jeff Garzik, and ShapeShift CEO Erik Voorhees.
In it, Belshe argued that SegWit2x was too controversial to move forward and that although its supporters consider a block size increase important, they see community consensus and bitcoin’s growth as priorities. The announcement reads:
“Our goal has always been a smooth upgrade for Bitcoin. Although we strongly believe in the need for a larger blocksize, there is something we believe is even more important: keeping the community together. Unfortunately, it is clear that we have not built sufficient consensus for a clean blocksize upgrade at this time. Continuing on the current path could divide the community and be a setback to Bitcoin’s growth. This was never the goal of Segwit2x.”
Belshe added that, until then, plans for the upcoming 2 MB upgrade are suspended. The market quickly reacted to the announcement, as bitcoin hit a new all-time high above $7,800 right after it was made. At press time, the price has corrected back to $7,277.10 according to data from CryptoCompare.
The announcement comes soon after the largest derivatives exchange in the world, the CME Group, announced it would launch bitcoin futures by the end of the year, which previously helped the cryptocurrency’s price stabilize above $7,000.
Belshe’s announcement ends with a message of unity, thanking everyone who contributed to SegWit2x, whether for or against it. It reads:
“We want to thank everyone that contributed constructively to Segwit2x, whether you were in favor or against. Your efforts are what makes Bitcoin great. Bitcoin remains the greatest form of money mankind has ever seen, and we remain dedicated to protecting and fostering its growth worldwide.”
Prominent community figures, including Litecoin creator Charlie Lee, already reacted to the announcement on social media. Notably, Lee pointed out that a 2MB block size may be needed in the future, but only when there’s consensus.
Segwit2x hardfork has been called off! Common sense prevails. Let's now work together towards scaling safely. We may need something like a 2x hardfork in the future, but let's do it when there's consensus and not rushed. ?
Tidze Emiliene, Director of the Blockchain Research Institute of Cameroon (BRIC), a newly formed Blockchain Think Tank in the Cameroon, has called on the government of her country to introduce a land title system built on the Blockchain. She believes such a move will eliminate the social tensions surrounding land ownership and will breath economic prosperity into the economy of the central African country.
In an interview with Core Media, she revealed how the absence of codified land title registry in the country has brought about so many litigations and violent conflicts in various communities. It must be noted that Cameroon is one of the uncountable African countries where there is no formal and institutionalized land title system.
Blockchain Solves All
"The best and cost-effective means to ensure secure property rights which is also a human right is via the open distributed public ledger of the Blockchain," Emiliene told Core Media. In her view, this is an unprecedented opportunity for the Cameroonian government to prove it cares about the economic freedom of the people.
Quoting Peruvian Free Market Economist, Hernando de Soto, she insisted that is the best means available at the moment to resurrect the dead capital of Cameroonians. To the young woman, this is the time for the government to embrace a technology that can assist the people to raise funds with their properties in order to start new businesses and turn their ideas into enterprises and corporations.
Fondly Called CryptoLady by her peers, Emiliene understands her country has been left out of the global economy as a result of the absence of fundamental economic foundations like title deeds. "Recently I've been following the work of Susanne Tarkowski and her Bitnation on Blockchain Land Title deeds and I'm quite convinced that is the way we should go," she said.
The Cryptolady mentioned that her organization has made this as one of their priority areas and will continue to research into the field and offer suggestions to policymakers. She says:
"BRIC will continue to study and advocate how Blockchain technologies can bring about property rights and engage all stakeholders. We intend to work with traditional authorities to start piloting this in 2018 to convince the powers that be that this is achievable and something our country needs urgently. We need to stop paying lip services and focus on concrete actions to attract investment both local and international."
Africa's Property Rights Situation
Africans have properties but the sad reality on the ground is most countries don't have former property systems that provide the security for them to access capital. A few countries Like Botswana, South Africa and Mauritius can actually boast of a robust land title register that provides the means of verification of ownership.
It is so inspiring to see how young Africans are realizing that they can leverage the Blockchain to create transparency, economic and financial freedom. Accurately, this century will definitely be Africa's time to rise up from the ashes and take its place in the world.
Prominent anti-malware tool Malwarebytes recently added BitConnect.co, BitConnect’s official website, to its list of blocked websites. When users inquired staff about the blockade, they were told that the website has a “very poor reputation” and that users are advised to stay away from it.
On Reddit, various users celebrated the move and shared screenshots of what they got when attempting to access the website. BitConnect is widely believed to be a Ponzi scheme that will one day lead to a loss of funds.
Malwarebytes is known for actively protecting its users against websites with a poor reputation. Recently, Core Media pointed to the tool as an effective one to use to remove CryptoShuffler malware, which hijacks cryptocurrency addresses copied to clipboards and switches them for the attackers’ address.
Others have also recently attempted to protect users against BitConnect. A Twitter account associated with the cryptocurrency Dash (DASH) recently tweeted at CoinMarketCap, asking the cryptocurrency index to remove BitConnectCoin (BCC), BitConnect’s cryptocurrency, from it.
BitConnect is a platform that promises investors high returns, of about 1% a day, through a supposed trading bot they created. Those who invest more are promised higher returns, as according to the website those who put over $10,000 of their own money will earn “volatility software interest” plus a 0.25% guaranteed daily bonus. These returns, as most users point out, are unsustainable.
The website is paired with a cryptocurrency that users need to purchase with their money to lend and earn interest. The cryptocurrency, BitConnectCoin, is currently trading at $267 and has a $573 million market cap, according to data from Cryptocompare.
Besides its promised returns, users also believe BitConnect is essentially a Ponzi scheme due to its cryptocurrency mostly being traded on its own exchange. At press time, its BCC Exchange had an $18 million trading volume on the BCC/BTC currency pair, while the second biggest exchange trading the cryptocurrency, Livecoin, has a $480,000 volume on the same pair.
Ethereum creator Vitalik Buterin, when questioned about BitConnect by Ponzi Crypto Coins, also pointed out it’s likely a Ponzi scheme:
Yeah, if 1%/day is what they offer then that's a ponzi.
Although it isn’t clear who created BitConnect, it is generally believed that the cryptocurrency survives because new users keep on investing in it. Once investments slow down and its creators aren’t able to pay users back, the website will presumably be shut down.
Finally, it is unclear what BitConnectCoin is actually used for, other than lending to the platform’s supposed trading bot. A few popular YouTubers and content creators actively promote the cryptocurrency in an attempt to earn more using BitConnect’s referral system. They claim that the cryptocurrency’s value is pegged to that of Bitcoin, as both cryptocurrencies surged in value this year.
Core Media reached out to two BitConnect-promoting YouTubers, but neither was immediately available. We will update the piece if we hear back from them.