How Facebook still lies about Libra

#SlapInTheFaceCoin

After months and months of speculation, Facebook has finally revealed the details of its would-be cryptocurrency challenger. However, what looks very revolutionary, is rather to be seen critical !

LibraFacts:

Facebook intends to launch a cryptocurrency in 2020, that´s what they say, Marc Zuckerberg´s video, pathetic how Unbanked are used as an excuse.

Visa and Mastercard left the Libra foundation, read more

PayPal and eBay left the Libra foundation in October 2019, read more

Vodafone left the Libra foundation in January 2020, read more

One is for sure: Libra will have a huge impact on the US-Dollar, maybe on the EURO and especially on currencies of countries with weaker currencies.

It is also important to see the power of Facebook: it has 2,4 billion active users, that´s 40% more that China has inhabitants which has 1,4 billion! No wonder that Chinese president Xi Jinping is pushing for their own digital Yuan.

LibraMyth No 1: A blockchain allows Libra to function

Libra is enabled by what is called in Zuckerberg´s White paper as the “Libra Blockchain” which is described as a “Decentralised Programmable Database”. However, Libra blockchain is a lot but NOT a blockchain. Some of the very important characteristics are missing. Normal blockchains add blocks to the chain. Libra neither uses blocks nor uses a chain! According to their technical paper it will be a “single data structure that records the history of transactions and states over time”.

Facebook wants to define the expression blockchain, because they use technologies associated with blockchains such as Merkle Trees, hashes, and a consensus mechanisms and therefore it should be called blockchain. However, I am very against the fact that Facebook should get to decide what a blockchain is and what not. And furthermore: What Facebook tries to achieve definitely does not need a blockchain at all.

LibraMyth No 2: Libra is decentralised

In the Libra Whitepaper provided, it is stated that Libra is a decentralised system. However, unlike Cryptocurrencies such as Bitcoin, Libra won´t use the Proof of Work consensus mechanism that incentivises miners to keep the network going. Instead Facebook and the other 27 founding partners of the Libra association will run their own nodes that validate Libra transactions. The partners include Uber, PayPal and MasterCard. Each one has paid $10 million for the privilege. Facebook says that Libra will move to a more permissonless system in the future. But we don´ t provide any details on how and when that will happen.

LibraMyth No 3: Libra can reduce payment fees

Fees for transferring moneyare high due to several reasons like political ones or technical which are associated with the complicated process of moving money from one jurisdiction to another. Although it is true that fees for cross-border payments are way toohigh, we already have many companies which try to work on that issue like TransferWise or Revolut. However, as long as the majority of people use US-Dollar or Euro or other FIAT currencies they will have to exchange their money into Libra which will come at a cost, which means: There are transactions costs twice: in and out of Libra.

LibraMyth No 4: Libra protects users from data-based conflicts of interest

Pah! Facebook has created a subsidiary called Calibra through which all its Libra related financial services will be offered. This is the only part of the organisation seeking to be licensed, and the license it is going for is only a money transmission license. This is odd given the system’s ETF-like structure and grander deposit taking aspirations. Calibra promises only to use users’ personal financial data for cross selling purposes if users give them permission to do so. This possibly means Calibra will do everything in its power to incentivise that consent box is clicked.

LibraMyth No 5: Facebook wants to help the Unbanked people

Seriously??? Facebook wants you to think that Libra is about helping the unbanked and the reason for introducing the Libra cryptocurrency introduction shall increase financial inclusion and to bring in the in the 1.7 billion adults around the world who remain outside the banking system. But it´s not clear how the unbanked will be able to buy Libra when these people have no bank account particularly if Libra wants to keep regulators happy by doing proper checks on its users to avoid money laundering. Libra is also unlikely to help people in countries with rapidly depreciating currencies as those countries tend to put in capital controls to prevent a run on their banks. Facebook has never shown interest in the unbanked before, and I am not sure why it´s suddenly so interested.

LibraMyth: No 6 Libra legitimises Bitcoin

Libra calls itself a “low volatility cryptocurrency”, but just as the Libra blockchain isn´t a real blockchain, Libra isn´t a real cryptocurrency either! That´s because it´s issued by a centralised entity, doesn´t run on a real blockchain and rather than being subject to the whims of the cryptomarkets it is pegged to a basked of fiat currencies. So it´s much more akin to something like the Gemini dollar, a stable coin issued by the Winklevoss twins exchange. And it is probably not a coincidence that the twins´ longtime rival Mark Zuckerberg chose another star sign for the name of the coin.

LibraMyth No 7: Libra will comply with all regulations

Libra says its Founding Members are “committed to working with authorities to shape a regulatory environment that encourages technological innovation while maintaining the highest standards of consumer protection”.

Libra says its Founding Members are committed to working with authorities to shape a regulatory environment

Really? Openly stating the intent “to shape a regulatory environment” rather than comply with the existing regulatory environment is a veiled assertion that Facebook is more powerful than the state, and that regulators should have to buckle to its will. While Facebook probably does have some sway over national bodies, to assume it can also sway international regulatory bodies like the BIS — which happen to have a bee in their bonnet about the use and abuse of customer floats by non-banks — is truly ambitious.

Overall the use of words blockchain and cryptocurrency is more about PR value than substance!

And ever thought about the fact that if we have a currency issued by companies: What if these companies are going bankrupt? Are they already TOO BIG TO FAIL? Another interesting aspect is who is NOT part of the consortium: Amazon, Google, Apple. And there is not a single bank! Will talk about that soon!

Sources: Cryptorobby, Alphaville, FinancialTimes

#ReturnOnSociety #Libra #Facebook #LibraLies #LibraMyths #CryptoCurrency #CryptoRobby

Related websites:

Germany: Forschungszulage: www.forschungszulage.de

Austria: Forschungsprämie www.forschungspraemie.tax

Cointelegraph Expert Share: Crypto conclusions of 2019 Outlook on 2020!

Pic: cointelegraph

Blockchain media platform Cointelegraph released statements of 40 renown experts on their conclusions on cryptocurrency and blockchain developments and learnings of 2019 and an outlook on future trends in 2020.

Original Cointelegraph article found here.

Below you finde the content of the article, links and references have been added.


1. Paolo Ardoino, Chief technology officer of Bitfinex

Paolo Ardoino, Chief technology officer of Bitfinex

A big setback for the industry this year has unfortunately been the scams that continue to take place in crypto, a recent notable example being the PlusToken (see BBC article)scandal. In terms of the biggest milestones, it is important to note the continued development of the Lightning Network within the ecosystem.

2. Marc P. Bernegger, Fintech investor at Crypto Finance AG

Marc P. Bernegger, Fintech investor at Crypto Broker AG

The crash and rebound of the Bitcoin price, the start of the Libra project by Facebook and the announcement of the digital Chinese currency were some of my highlights in 2019.

Personally, I was of course very pleased that we were able to launch one of the most successful crypto funds in the world at Crypto Finance Group with our Crypto Quant Fund in 2019 (this has already won various performance awards).

3. Paul Brody, Blockchain lead at Ernst & Young

Paul Brody, Blockchain lead at Ernst & Young

For 2019, this was a year of big transition for EY. The era of proof of concept is largely over and instead people became focused on going to production for their enterprise solutions. The downside here, though, is that they ran straight into the roadblock of partner adoption. Private blockchains are expensive and they don’t scale up very well, when it comes to partner on-boarding. A study conducted by Forrester on behalf of EY in November 2019 confirmed this. The good news is that by the end of 2019, I think we had largely solved the cost challenges for doing business securely on public blockchains (see here) and we look ahead to 2020 to see the migration of enterprise users to the public Ethereum mainnet. The crypto market also felt like it was treading water in 2019, with big anticipated changes like Lightning not appearing to have much impact. That being said, what may look like treading water on the surface conceals an enormous transformation on the engineering side. For all the obsession around tech firms doing things quickly, the reality is big changes can take a year or more to flow from concept to product to client adoption. At EY, our engineers were very busy in 2019 and this will only continue in 2020.

4. Virginia Cram-Martos, CEO of Triangularity

Virginia Cram-Martos, CEO of Triangularity

For me, 2019 was the year —

  1. That crypto found its way onto the “top 10” topics of many politicians and central bankers.
  2. Of blockchain turbulence in China, which ended on a positive note in late October — but which created waves moving out across the rest of the world.
  3. Of increasing legal constraints which have transformed offerings (ICOs) into an option only for those with very well-funded legal and regulatory compliance teams. Still perhaps cheaper than initial public offerings (IPOs) — but the gap is closing.
  4. That business leaders began to recognize hype as being “hype”; to understand that the benefits from blockchain, while very real, have limits, some of which are linked to the “tolerance of change” within their own organizations; and to see that the implementation of blockchain technology, for example, for traceability, can be complex.
  5. That blockchain developers also began to realize the importance of barriers to implementation created by the complexity of supply chains and organizational culture.

5. Changpeng “CZ” Zhao, Founder and CEO of Binance

Chanpeng “CZ” Zhao, Founder and CEO of Binance

There is a growing amount of governments across the globe examining blockchain and cryptocurrencies, including stablecoins, as well as self-regulated and global regulatory standards, which indicate more widespread public adoption. I think in 2020 we will see different experiments tried by many different governments around the globe for adoption, some will work, some may not, but overall, they will have a tremendously positive effect for crypto adoption.

6. Alejandro De La Torre, Vice president at Poolin

Alejandro De La Torre, Vice president at Poolin

2019 was a year of mining. The hashpower steadily increased throughout the year to reach an all-time high of 100 exahashes, a record for Bitcoin. The hashpower increased even though the price fluctuated wildly and was bearish in general. This shows me that crypto, and more specifically Bitcoin, is here to stay. The confidence the mining ecosystem showed regardless of the price is an extremely good sign for the Bitcoin cryptocurrency industry for future years. It points to the fact that these people mining believe in Bitcoin and its potential. Another huge impression of 2019 for me was the advent of multiple upgrades to the mining protocol, namely Stratum v1. Keep in mind that Stratum v1 has not been updated for basically the whole entire time pool mining becomes a thing. The great brains behind Braiins (pun intended) developed and launched Stratum v2. An important step for further decentralization of the mining process. Additionally, other mining pools like the one I currently work at, Poolin, are also developing a new mining protocol also furthering decentralization. Poolin calls it Bitcoin Universal Mining Protocol, or BUMP, for short. Information on our open-source protocol will be released in 2020.

7. John deVadoss, Head of development at Neo

John deVadoss, Head of development at Neo

2019 was the year that kept crypto and blockchain in the headlines of the mainstream media. It was no more a question of what or why — it became a question of when cryptocurrencies would gain prominence, and potentially lead the way.

Three big milestones happened this year.

In July, Jerome Powell, the chairman of the Federal Reserve, gave testimony about the Libra project before the Senate Banking Committee. For the first time, elected officials in the U.S. had an opportunity to understand the implications of cryptocurrencies, and the need to balance financial innovation in a “safe and sound way,” as he phrased it.

In October, President Xi Jinping publicly encouraged China to “accelerate the development of blockchain and industrial innovation.” This was a remarkable indicator: a message unlike one from any other leader on the global stage and that has since catalyzed an extraordinary wave of investment and innovation.

And just earlier this week, the Bank of International Settlements (BIS), which serves as the central bank for central banks, initiated dialogue to formulate a crypto asset policy for banks worldwide. The BIS wants to design “a prudential treatment for banks’ crypto-asset exposures,” as they phrased it.

Collectively, these are a sign of the extraordinary times that we live in.

8. Daniel Diemers, Head of blockchain at PwC

Daniel Diemers, Head of blockchain at PwC

Well, we all witnessed the soft and pleasant increase in temperature after the “Crypto Winter,” but the Crypto Spring of the last 6–8 months was more of a sideways movement, which I still think is healthier overall for the ecosystem than if we’d gone straight into another steep price hike. Working as a bridge-builder between the blockchain/crypto world and incumbents and large corporates, what 2019 really stood for is final acceptance that “Crypto is Here to Stay.” For most of us, this sounds like an old narrative, but in the Board Rooms around the world, it’s not. Libra, in its own right, has helped here too, because seeing a large tech firm at the doorsteps launching such an ambitious blockchain project hammers that message straight home.

9. Denelle Dixon, CEO of Stellar Development Foundation

Denelle Dixon, CEO of Stellar Development Foundation

I joined the Stellar Development Foundation (SDF) in mid-2019, right around the time when we started seeing broader public interest in the blockchain space as a result of new players in the market, like Facebook and JPMorgan. The entrance of these companies helped push blockchain into the mainstream conversation and build more credibility for the technology. It was an exciting moment to jump into the space and join discussions about the potential for the technology we’re building.  

In addition to the institutional interest in cryptocurrencies, the rising popularity of stablecoins continued to grow in 2019 — and we’ve witnessed that firsthand as new partners built on the Stellar Network. Whether that was Franklin Templeton using Stellar for a new fund or IBM signing on several banks to issue stablecoins on WorldWire this year, we saw this broader trend playing out in the Stellar ecosystem.

10. Arthur Hayes, CEO of BitMEX

Arthur Hayes, CEO of BitMEX

Boring. Exciting. Boring again. That is how I would describe 2019. Things got exciting in the summer when Facebook announced Libra. 2019 was the year of the stablecoin. Although many people do not understand that stablecoins are essentially digitized versions of fiat currencies, it is positive that more people are embracing a digital monetary existence. Stablecoins may prove to be the gateway catalyst into a true cryptocurrency like Bitcoin.

11. Ivan on Tech, YouTube influencer

Ivan on Tech, YouTube influencer

This has been an amazing year filled with opportunities and a lot has been accomplished in the industry. Bitcoin was an absolute rollercoaster, Facebook announced Libra, China has endorsed blockchain while condemning cryptocurrencies.

Bitcoin technology has evolved with a lot of progress being done on Schnorr signatures, while Ethereum has surprised by the growth of DeFi protocols, such as Compound, Synthetix and Uniswap. The value locked in DeFi DApps has exploded from $190 million at the beginning of 2019 to $628 million today. Insane growth that highlights the importance of this industry.

12. Sasha Ivanov, Founder and CEO of Waves

Sasha Ivanov, Founder and CEO of Waves

2019 was a formative year for crypto, year of the next leg of the Gartner curve, the beginning of a steady growth. No breakthroughs have been achieved, rather we are laying the foundations for future advancements. I was impressed by a steady growth of enterprise blockchain, finally we can see a breakthrough in the level of understanding of blockchain concepts in business scenarios.

13. Christoph Iwaniez, Chief financial officer of Bitwala

Christoph Iwaniez, Chief financial officer of Bitwala

It’s been a great year! Many projects with smart people and good ideas have delivered products and further developments.

At Bitwala, we were of course very focused on our customers: About 12 months ago… with the free bank account and debit card for Bitcoin investors, we are virtually at zero launched. From Berlin, we now serve customers in all 31 countries of the European Economic Area. The customers are happy and so are we.

And so are our investors, by the way: In the summer, we made our largest investment to date ($13 million for a German blockchain start-up). The amount of the funding round and the well-known investors underline that even in a bear market a strong team, an innovative product and the actual implementation convince investors.

14. Sanja Kon, Vice president of global partnerships at Utrust

Sanja Kon, Vice president of global partnerships at Utrust

2019 was a remarkable year for blockchain and cryptocurrency development. We saw the birth of new trading products: Regulators on both sides of the Atlantic started paying close attention to the benefits of digital assets, and China entered the blockchain race in full force spending billions in its efforts to become the epicenter of development.

For me, undoubtedly the biggest milestone of 2019 was Libra. A seismic shift occurred across the globe following the announcement. Libra successfully goaded central banks around the world to start having a serious conversation about the digitization of currencies.

But it was by no means an easy ride, the prolonged bear market shook the industry. For Utrust, however, this was a blessing in disguise. We put our heads down and focused on building and improving our technology. We have not only survived but have thrived ever since.

15. Jonathan Levin, Co-founder and chief security officer of Chainalysis

Jonathan Levin, Co-founder and chief security officer of Chainalysis

At the beginning of this year, I predicted 3 major themes in cryptocurrency for 2019: Cryptocurrency would be embraced as “regtech” by financial institutions and regulators, it would play a vital role in sanctions enforcement, and Anti-Money Laundering practices (AML) would strengthen in Asia.

As it turns out, 2019 was an important year for cryptocurrency in terms of regulations, but more in terms of clarity provided by the Financial Action Task Force (FATF) and FinCEN, than automating banks’ compliance programs and regulatory oversight. Notably, for the first time, FinCEN explicitly states blockchain analysis is an important part of an effective AML solution and a significant factor in cryptocurrency businesses’ ability to comply with the Bank Secrecy Act (BSA). FinCEN makes it clear that Know Your Customer (KYC) processes are also important, and cryptocurrency businesses should expect tough regulatory scrutiny on that as well next year.

We also saw further regulatory clarity from the SEC. For example, the Blockstack Reg A approval was the first approval of its kind and demonstrates a path to SEC-approved IPO-type fundraising with a crypto token. While other firms have previously taken advantage of Regulation A , this is the first time that investors will receive a token rather than shares in the company. 

Now that we have the regulatory clarity, I think 2020 will be an important year for embracing cryptocurrency as regtech.

Cryptocurrency did indeed continue to become important to sanctions enforcement, most notably related to fentanyl trafficking. I expect this trend to continue.

While our business expanded in Asia and Anti-Money Laundering practices there are strengthening, we still see the laundering of large amounts of illicit funds through some OTC brokers operating out of China. Funds stolen through the PlusToken scam is a good example of this.

One notable milestone that I didn’t predict was major law enforcement announcements that credit blockchain analysis as a critical tool in identifying suspects and making arrests. The Department of Justice’s announcement of the takedown of Welcome to Video, the largest ever child pornography site by amount of material stored, along with the arrest of its owner and operator and more than 337 site users across 38 countries along with the identification and rescue of 23 minors, was a major event for the industry. Law enforcement discussed how they were able to harness blockchain analysis to make arrests and rescues that otherwise would not have been possible. This was an important example of how blockchains can actually provide greater transparency into financial transactions, not less.

2019 also saw the entrance of major players into the cryptocurrency ecosystem, particularly Facebook and Fidelity. With Libra, Facebook has the opportunity to make cryptocurrency available to their massive user base, leading to its more pervasive use. Of course, this has the potential to create financial inclusion for both good and bad actors, and the risk of money laundering will need to be mitigated. Transaction monitoring will be needed to meet the expectations of regulators around the world. And Fidelity’s launch into custody and trading services for digital assets is also a boon for the industry and will pave the way for further adoption from financial institutions.

Finally, CME Bitcoin futures was an exciting development and I expect it to continue to pick up.

16. Alex Mashinsky, CEO of Celsius

Alex Mashinsky, CEO of Celsius

2019 was a turbulent year, to say the least. I think all of us in the crypto community were hoping to reach new heights as far as mass adoption, but we just didn’t get there yet. We are still a relatively small group of crypto nerds, but I’m hoping 2020 is the year that changes that. Without a doubt, Facebook’s Libra had the biggest impact on awareness for cryptocurrencies. Our friends in China announced they were getting into digital currencies and that woke up a few U.S. Senators to start having important conversations about our own digital currencies. By the time the U.S. government gets there, it will be too late. 

17. Samson Mow, Chief strategy officer of Blockstream

Samson Mow, Chief strategy officer of Blockstream

For 2019, we had a great year at Blockstream. We launched Blockstream Mining and are now one of the largest players in North America now with 300 MW of capacity. We also announced a new product, Liquid Securities, which is a platform that sits on top of the Liquid Network (Bitcoin sidechain) to allow companies to issue tokenized securities. We’re also seeing a lot of traction with the Liquid Network itself as Tether ($4 billion market cap stablecoin) launched support of it, and BTSE (cryptocurrency exchange) announced they will be raising $50 million through an exchange token issued on Liquid.

18. Niklas Nikolajsen, Chairman & Founder at Bitcoin Suisse

Niklas Nikolajsen, Chairman and co-CEO at BitcoinsSuisse

2019 was a year of consolidation and of developments in regulation, but also of commercial and technical progress. Bitcoin stabilized from the end-2017 hype, and regulators and banks all over the world started taking the topic of crypto assets seriously. Big news included, of course, Libra, ChinaCoin and the development of regulatory frameworks in the EU, Liechtenstein, Germany and other jurisdictions. On the commercial side, the launch of the first futures, ETP and developments of ETP products for Bitcoin and Ethereum, and on both the commercial and technical side, the development and growth of the DeFi services and the development of Ethereum 2.0.

19. Philipp Sandner, Head of Frankfurt School Blockchain Center

Phillip Sandner, Head of Frankfurt School Blockchain Center

Blockchain means “crypto assets” on the one hand and “DLT” on the other — i.e., applications from the pure corporate context. In the area of “crypto assets,” one can see how Bitcoin and Ethereum, in particular, have developed very positively on the basis of various metrics — but not in terms of price. In “DLT,” one can see that one after the other, companies are now getting enthusiastic about blockchain technology. Industrial companies, banks, etc. — with some delay even the middle class.

20. Robert Schwertner, Influencer CryptoRobby

Robert Schwertner, Influencer

The situation of the crypto industry in 2019: “The Party Is Over”. The magical attraction of cryptocurrencies is finally lost in 2019. In previous years, blockchain start-ups issued their own cryptocurrencies and collected fabulous sums from many stupid people, some of whom call themselves investors. Driven by greed and hope for quick wealth, blockchain companies threw money down their throats. However, they forgot the most important economic rule: Every good business needs a coherent business model. That was missing from 99% of the blockchain companies. By 2019, disillusionment was spreading and investors were getting smarter. The process was painful but definitely beneficial. What we are seeing now are great new projects of high quality.

Probably the most important hit in 2019 was Mark Zuckerberg’s cryptocurrency project Libra, and it did so several times: The foundation was established by Facebook and other partners in Switzerland. Mastercard, Visa, Paypal boarded as partners. Central banks replied immediately by criticising Libra as a “danger to the financial system”. Politicians denounced Facebook as a data killer. In October, the bomb exploded: Visa, Mastercard and Paypal got cold feet, they leave the project.

However, Libra’s merit is certainly that now finally Western central banks are waking up and thinking about their own digital currency projects. And this is absolutely necessary for the survival of the western market economy because there is already a lot of activity in the East: I was impressed by the targeted use of blockchain technology by China. They are not only talking but alos implementing: The Chinese government is already testing a Digital Yuan/Renminbi with over 500,000 companies in the two industrial cities of Shenzhen and Suzhou from 2020. The aim is to simplify the sending of invoices, make immediate payments, and also improve the payment of salaries and social security. The tax system will be considerably simplified. If the USA and Europe do not quickly promote innovation and create improved framework conditions, we will lose this competition and will have to implement Chinese standards later.

21. Lex Sokolin, Co-head of global fintech at ConsenSys

Lex Sokolin, Co-head of global fintech at ConsenSys

2019 has been a year of progress for blockchain, cryptocurrencies and digital assets. There has been significant advancement led by both decentralized communities and centralized institutions.

First, decentralized finance is beginning to take root globally. DeFi protocols now enable savings and lending, exchange and trading, and synthetic structured products. We count over 200 stablecoin projects, most of which run on Ethereum. Over $500 million is currently locked in DeFi, powering a variety of capital markets applications.

More traditional assets from real estate to art, securities to bonds, are now transacted using tokenized financial instruments over public and private open-source blockchains. The market share for DeFi has only just begun.

Institutions, whether enterprise or even government bodies, have clearly signaled their interest. Early in the year, JPMorgan announced their JPM Coin for better interbank settlement. This was followed by Facebook’s announcement of Libra, which accelerated developments from the Chinese and U.S. governments.

ConsenSys released Codefi (Commerce and Decentralized Finance) in September this year as the first full product suite of fintech tools to help companies and organizations with their blockchain and digitalization journey. For instance, we helped Mata Capital tokenize a single real estate fund asset, backed by ownership of a building in Paris, for an investment sum of 26 million euros.

22. Ulli Spankowski, Chief digital officer at Boerse Stuttgart

Ulli Spankowski, Chief digital officer at Boerse Stuttgart

In my view, the crypto and digital asset industry 2019 developed very positively. We welcome the progressive acceptance on the retail and institutional side, as well as regulatory further development of the crypto industry. The blockchain strategy of German Federal government, the announcement of Libra and the creation of the first regulated trading center for digital assets in Germany with the Boerse Stuttgart Digital Exchange are just a few highlights that point to one positive development of this exciting future technology around blockchain and DLT. However, the aspect of security in the custody of cryptocurrencies has made unfortunately negative headlines in 2019 again and will continue to occupy the industry in the future. But I see here a professionalization of the crypto industry — with emerging insurance solutions and new security concepts.

23. Alexandra Tinsman, NEM Foundation President

Alexandra Tinsman, NEM Foundation President

In 2019, the crypto community bore witness to the rise of stablecoins — a necessary development for the industry that indicated a movement toward KYC and regulation of exchanges, an essential requirement for mainstream adoption among traditional investors. I was also happy to see the progress in blockchain-based securities trading, from both a tech and regulatory perspective. The stage is being set for a popular blockchain use case, and I’m excited that NEM Catapult has some special tech advantages here.

24. John Todaro, Director of TradeBlock

John Todaro, Director of TradeBlock

2019 was very much characterized by U.S. political involvement in digital currencies. For the first time, President Trump tweeted about Bitcoin, Secretary Mnuchin held a conference discussing digital currencies, and there were various well-attended hearings in Washington around the space. While we had seen U.S. regulators become involved in the space in previous years, this was the first year that we saw an extensive involvement from politicians and lawmakers, including a sitting U.S. president. Some of the biggest milestones we saw this year was proof-of-stake networks coming online, with a rise in staking of tokens to capture an annual yield on invested assets, progress in the Lightning Network, growth of decentralized financial services as evident by the number of loans originated/and Ether locked across these platforms, as well as the launch of Bakkt’s product offerings and others to allow for greater institutional involvement in the space. Some of the bigger setbacks of 2019 was the response of some U.S. lawmakers around Libra as they push to delay or stop the project, China’s recent harsher stance on digital currency trading, and the exit of exchanges from U.S. markets, including Poloniex and Binance.

25. Erik Voorhees, CEO of Shapeshift

Erik Voorhees, CEO of Shapeshift

2019 was pretty clearly a year of consolidation after the bear-market misery year of 2018. The biggest event of the year has to be the formal announcement of Facebook’s Libra, due to the shockwaves it sent across the world. If governments and banks weren’t paying attention to this technology before, they sure as hell are now. Amazingly, Libra has taken much of the antagonism away from Bitcoin.

Beyond Libra, the big story is the DeFi phenomenon: stablecoins and interest-bearing accounts that are significantly decentralized. In a world of increasingly negative interest rates, DeFi is a bright spot, bringing borrowers and lenders together, regardless of their jurisdiction, and without the involvement of any bank or government. DeFi is still early and full of risks, but it is a beautiful thing to watch.

26. Whale Alert

Whale Alert

In 2019, we again saw some very high volatility with Bitcoin prices ranging between $3K and $13K. While this made for some notable headlines and great trading opportunities, price swings like these have a chilling effect on adoption and I hope to see more stability in 2020.

A big setback for crypto in general were the many successful hacks attacks aimed at exchanges. It was disappointing to see that at least in a few cases the impact of these hacks could have been lessened or even prevented by adoption of better security models. However, what was really important was that some of these hacked parties, like Binance, managed to absorb the losses and continued to operate normally. No one will ever be completely immune to hacks, but demonstrating that being hacked won’t necessarily impact customer funds was a huge win for crypto.

All things considered, I think that 2019 was a great year that brought us an increase in adoption with more people using cryptocurrencies and more companies offering payment options through crypto, but also some great applications from the fintech industry, like the first bond settlement on blockchain.

27. Sebastian Borget, Co-founder and chief operations officer at The Sandbox

Sebastian Borget, Co-founder and chief operations officer at The Sandbox

The growth of DeFi and Blockchain Gaming have made the biggest impression on me. I think 2019 has been a very good year overall for the industry to focus on building products, communities and adoptions and find an actual market for their products. The quality of projects overall has risen, which we are very happy to see.

28. Benedikt Bünz, Co-founder of Findora

Benedikt Bünz, Co-founder of Findora

I think there is a lot of development happening under the hood and a lot of exciting technological progress has happened. Additionally, big actors like Facebook and the Chinese government have announced that they are very interested in the place and are building new projects. This is very exciting, as it shows that the place is getting more and more professional. Unfortunately in terms of adoption, this year wasn’t the breakthrough that people had hoped for. We still need to improve usability such that more and more people can effectively use cryptocurrencies.

29. David Chaum, Founder of Elixxir

David Chaum, Founder of Elixxir

The biggest development in 2019 is the growing public awareness of the vital role that privacy plays in our digital lives, and how poorly the big consumer networks preserve and protect our privacy. This public focus on privacy is a tremendous opportunity for the blockchain community to appeal to these users, provided that we can offer solutions that satisfy their needs.

Also, Google announced a breakthrough in the development of quantum computing, which raises the bar for cryptographic protocols that have been used for blockchains and cryptocurrencies. There is now a real challenge to the community to deliver quantum secure decentralized platforms and currencies to avoid control of these platforms by private and government entities with quantum computing capabilities.

30. Adam Ficsor, CEO of Wasabi Wallet

Adam Ficsor, CEO of Wasabi Wallet

I believe the raise and stabilization work on the Lightning Network and Wasabi wallet are the most important milestones, where the first is advancing Bitcoin’s portability and fungibility, while the latter is advancing its fungibility. Also note, I may be slightly biased on the latter 🙂

31. Joshua Frank, CEO of The TIE

Joshua Frank, CEO of The TIE

2019 was a mixed bag for digital assets. On the one hand, we have seen tremendous technological developments in terms of infrastructure for traditional institutions looking to trade digital assets. We have seen improvements in custody, execution, data and more. However, 2019 can be characterized by a sharp decline in retail interest and disappointing institutional involvement. 

The biggest milestones were the launch of Bakkt and Fidelity Digital Assets. The biggest setback has been regulatory uncertainty in the United States. While China’s anti-crypto stance was a net-negative for the industry, it was not surprising.

I have been very impressed by a few developments within the space. The first is Bitwise Asset Management’s focus on attracting registered investment advisors and family offices to allocate to digital assets. I am also excited about the developments being made that enable institutional investors to trade out of cold storage.

32. Mati Greenspan, Founder of Quantum Economics

Mati Greenspan, Founder of Quantum Economics

Overall, 2019 was a very positive year for Bitcoin and crypto. The biggest milestone by far was the announcement from Chinese President Xi Jinping that he would like to see China embracing blockchain technology. This is clearly a watershed moment for this growing industry.

33. John Jefferies, CFA at CipherTrace

John Jefferies, CFA at CipherTrace

2019 was the year that the crypto industry was told to grow up by regulators around the world. Travel Rule enforcement is simultaneously the biggest milestone and the biggest setback for crypto. It has and will continue to force a level of maturity that will enable the industry to grow into an institutionally accepted asset class that is adopted by the masses for payments. It also presents an existential threat for many exchanges and poses potential privacy issues for users. The Travel Rule compliance operations will be costly even with open-source software like Trisa.

34. Tal Kol, Co-founder of Orbs

Tal Kol, Co-founder of Orbs

The big surprise of 2019 was the dominance of enterprise blockchain solutions. While many 2017–2018 startups took a beating this year, there was a steady interest in blockchain technology from the enterprise sector, which has traditionally led much of the experimentation of emerging technologies due to its vast resources and reach. The biggest development, however, is the growing realization by corporations that the real value driving innovation is in public, permissionless blockchain and not in private DLTs. Whether its EY developing exclusively on Ethereum mainnet or the many post-private POCs looking for a public implementation for their use-case, I believe these milestones will make 2019, seen in retrospect, as the year where existing businesses built the foundation for mass adoption of blockchain technology.

35. Evan Luthra, Serial tech entrepreneur, founder of StartupStudio.online and iyoko.io

2019 was full of significant events for the crypto industry: the launch of institutional giants Bakkt and Fidelity Digital Assets, the boom of STO, IEO and DeFi, the next, albeit not prolonged, Bitcoin rally. However, there were unpleasant moments. Numerous scams and the closure of a large number of exchanges. For example, in India, under the pressure of regulators and the refusal of banking services, Koinex, the country’s largest Bitcoin exchange, has closed. This was preceded by the liquidation of the Coindelta trading platform for the same reasons.

I was impressed by the prospects of a brand-new trend — staking. And I think that 2020 will show that the possibilities of cryptocurrency are much greater than it is considered. And digital money, which allows you to receive passive income, can become #1 in the blockchain industry very soon.

36. Diogo Monica, Co-founder and president of Anchorage

Diogo Monica, Co-founder and president of Anchorage

2019 was a year of infrastructure-building — from new custodial technologies and decentralized protocols to innovative payments capabilities, like Lightning Network, engineers have been working hard to develop the necessary plumbing for the emerging digital asset financial system. 2019 was also a year of mainstream validation with Facebook, JPMorgan, Fidelity, Telegram and other corporations piloting or actively building blockchain projects. Institutional involvement heralds a bright future for the entire crypto sector, and we expect to see more institutions entering the space in 2020.

37. Kim Nilsson, Blockchain researcher at WizSec

Kim Nilsson, Blockchain researcher at WizSec

We’re wrapping up one more year that Bitcoin’s been around, despite continuing predictions of its imminent demise. The post-2017 bear market still drags on, but I’m not thinking about price too much; right now, Bitcoin only needs to be valued high enough to pay for its own security while the next generation of improvements, like Lightning Network, are being developed. It’s been a rough year for altcoins though, whose value seems to be much more speculative.

If anything, the fact that Bitcoin is enduring such setbacks rather than collapsing seems to have further raised mainstream awareness that it’s here to stay and not just a bubble. There’s been increasing attention and recognition from politicians and other public figures, and mega-companies, like Facebook, are starting to make plays for this new market.

38. Zac Prince, CEO of BlockFi

Zac Prince, CEO of BlockFi

Crypto had a great year in 2019 and accomplished a key objective or rebounding from the lows after the big drawdown coming from the rapid rise at the end of 2017. The annual performance of Bitcoin in 2019 will likely be better than most other assets, which is very positive for the sector.

Key milestones included the launch of Bakkt, Fidelity’s custody platform, growing adoption/accessibility from traditional fintech companies, like Square, Robinhood and SoFi, and an infrastructure development across lending and prime brokerage type services.

39. Danny Scott, CEO of CoinCorner

Danny Scott, CEO of CoinCorner

I feel that 2019 reflects the “Slope of Enlightenment” phase of the Hype Cycle. With the price of Bitcoin up more than 100% since the beginning of the year, we’ve seen confidence in the market begin to return with what I believe could be our new bottom. People are becoming more savvy to altcoins and their lack of use, as we’ve seen all of the top 10 altcoins lose significant value against Bitcoin (except for BNB, which is likely to be as a result of Binance’s heavy push on their coin this year).

My attention has been focused on the Lightning Network developments this year, seeing its first major bug handled extremely diligently. Nodes have doubled over the year to almost 5,000, as well as exchanges beginning to integrate it into their offerings.

We’re also seeing what I can only describe as our first “Layer 3” developments, with the proof of concept “Whatsat,” which is developed to be a decentralized version of WhatsApp built on top of Bitcoin’s Lightning Network (Bitcoin Layer 1, Lightning Network Layer 2, Whatsat Layer 3).

40. Alexander Zaidelson, CEO of Beam

Alexander Zaidelson, CEO of Beam

I think the year of 2019 was a year of big hopes for wider adoption and some disappointments. The Libra debacle was one of the big events that, in my view, influenced the market quite a bit. While the reaction of the hardcore crypto community to Libra was mostly negative (Libra is not really a cryptocurrency), there was hope that bringing 1B people to blockchain-based currency will increase awareness and adoption. But this did not work out.

So, in my mind, the biggest milestone is that crypto made inroads into the mainstream media and awareness, and the setback is that this did not lead to wide adoption (yet).

2019 was also a big year for privacy. Mimblewimble-based Beam and Grin made a bold entry in the beginning of the year and have now become important players in the ecosystem. The success of Mimblewimble protocol spurred interest from leading projects in the space, such as Monero/Tari, Litecoin and others. There was also a lot of privacy-related research — Halo by Zcash, Ben Fisch’ work on Trustless SNARKs, Lelantus protocol developed by Zcoin and adapted by Beam as Lelantus-MW, Aztec and Zether privacy protocols for Ethereum and more. Privacy is becoming a topic of the debate, and the need for privacy is being realized by the community.

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What is the next Bitcoin?

Bitcoin is not only the oldest cryptocurrency, but still the undisputed number one among them when it comes to market capitalization. Almost 70% of the total value of all existing cryptocurrencies is in Bitcoin. Nevertheless, the world’s first blockchain is struggling with problems. Huge energy consumption, scaling problems and the question of how to proceed when the block reward goes towards zero.

Recent projects are trying to address the core problem of Bitcoin, the consensus mechanism Proof-of-Work. Among the best known alternative consensus mechanisms are Proof-of-Stake, a variation of it, delegated Proof-of-Stake, or even alternative database structures such as the Directed Acyclic Graph (DAG).

Proof-of-Stake (PoS)


At the PoS, the component, which is represented by the energy consumed by the computing power during PoW, takes over the credit of the block producers. Analogous to hash power, the probability of being allowed to produce a block increases with the amount of coins owned. Although it is costly to secure a portion of the network because the coins cost money, this consumes much less energy.

Known projects implementing PoS are Algorand, Cardano or probably soon Ethereum 2.0, although the Proof-of-Stake itself still contains some problems for which there are different solutions. The projects mentioned support all Smart Contracts and are therefore superior to Bitcoin in terms of flexibility. Whether they really have the potential to knock Bitcoin from its throne will have to be shown in the next few years.

Delegated Proof-of-Stake (dPoS)


DPoS is very similar to PoS. The big difference is that not every stakeholder operates a node, but delegates the power represented by the number of its tokens. The nodes that receive the most votes take over the task of block dispatching or verification.

This model allows high scalability at the expense of executive decentralization. Known projects implementing this consensus mechanism are EOS, Tezos, Tron, Nano, Lisk, Ark. Delegated Proof-of-Stake solves some problems of PoS, but also shares the more serious ones. Crypto exchanges that do not really own the coins, for example, have great influence. It also remains to be seen how dangerous dPoS projects can be for Bitcoin.

Directed-Acyclic-Graphs (DAG)


With DAGs more than just the consensus mechanism changes. The whole database structure is fundamentally different from a blockchain. There are no longer connected blocks, but the transactions are directly chained to each other. The block limitation is omitted and the task of confirming is performed by many nodes simultaneously. Theoretically, a high degree of scaling is thus possible.

Theoretically, because the DAGs also suffer from serious problems which are currently being solved. Also for DAGs there are different approaches in the implementation. Among the best known DAG projects are IOTA or Fantom.

The ambitions of these projects are high. Whether it is enough to get to Bitcoin cannot yet be said. Time will show.

Conclusion


There are several promising technologies that solve Bitcoin’s problems, at least in theory. However, technology alone is not responsible for a large market capitalization. It can be assumed that the vast majority of investors have relatively little knowledge of this. What counts most is the reputation and network effect, in which Bitcoin is clearly ahead. It is almost impossible to say now what will replace Bitcoin. It is more likely that there will be no such thing in the near future.

An important question is, is it absolutely necessary to outperform the market capitalization of Bitcoin? Each blockchain has its advantages and disadvantages, so what is to be said against Bitcoin as digital gold remaining the most valuable cryptocurrency for the next few years? If the whole market rises, the investor may be indifferent in the end.

Twitter / Instagram: cryptorobby_

China releases end-year Crypto Ranking: Bitcoin a “success story”

Bitcoin back in China´s Top 10

China’s Center for Information and Industry Development published a new list of its crypto ranking index, pushing Bitcoin 2 spots higher than its last report. This marks a change in China´s political stance which has always been critical towards Bitcoin. The official Chinese state-run Xinhua News Agency has published a report recognizing Bitcoin (BTC) as “the first successful application of blockchain technology.” 

The rating and coverage is exceptional given China’s abiding hardline stance against decentralized cryptocurrencies, as epitomized by Beijing’s historic September 2017 blanket ban on crypto exchanges and initial coin offerings.

Xinhua emphasizes the volatility of Bitcoin as a currency that is not backed by a centralized sovereign power — as distinct from national fiat currencies. 

Positive comments of president Xi Jinping

The report comes along with positive comments of China´s President Xi Jinping, who said that China will take the lead in blockchain technology, and research will be funded to establish blockchain solutions.

The CCID Chinese Crypto Index has brought a number of changes from the last ranking of cryptocurrency and blockchain projects, although the top one still remains EOS. The smart contract platform EOS has been the top-ranking project in the previously published indexes, indicating that China is still highly interested in this particular project despite recent governance concerns.

TRON lost to Ethereum

However, the second spot on the list – which was previously occupied by Justin Sun’s TRON – now belongs to Ethereum. Meanwhile, TRON itself dropped to third place.

While its ‘Creativity’ and ‘Basic-Tech’ sub-indexes remained largely the same, its ‘Applicability’ and ‘Total Index’ dropped by around 3 points. Meanwhile, Ethereum’s Total Index increased by around three points, which led to that two projects swapping places.

The situation regarding the top 3 projects is once again the same as it was in the 13th index, although with somewhat different Total Index scores.

NEO up from 9th to 6th, LISK from 7th to 5th

Other significant changes between the 14th and the 15th assessments include Lisk moving from 7th to 5th position in the newest ranking, as well as NEO’s rise from 9th to 6th position.

Qtum dropped significantly

Qtum, on the other hand, dropped from 8th to 14th place, while Bitcoin itself currently ranks slightly better, sitting at 9th position after previously being kicked out from the top 10 list, and ranked as 11th best project. Meanwhile, the last on the list is IOTA, holding the rank of 35. IOTA dropped from the 33rd position from the last ranking, replacing Decred which is still close to the bottom, sitting at 34th spot.

No new coins were added or removed from the index since the previous ranking.

China’s Center for Information and Industry Development (CCID) is a research institution which operates under the Ministry of Industry and Information Technology. One of its functions is to provide businesses, as well as the government, with various professional services, such as research, certification, and alike.

The institution also started providing Global Blockchain Technology Assessment Index reports back in May 2018. The first ranking was published on May 17th, and the country released 14 additional Indexes, including the one published earlier today.

The index ranks cryptocurrency projects based on several sub-indexes, including innovation, applicability, and underlying technology performance.

The original index ranked only 28 cryptocurrency projects, although several additional ones were added along the way. The 15th ranking includes 35 projects in total,

These reports are important, as they indicate which aspects China values when it comes to crypto/blockchain projects. Bitcoinist reported that the country is currently preparing to launch its national cryptocurrency. A recent report also claims that the country will perform test launching in two of its cities, likely before the end of the year.

Source: Cointelegraph, Xinhua, Bitcoinist, CCID

Chinese Crypto & Blockchain Ranking Report

BREAKING: Largest South Korean telecom company issues a blockchain-based local currency in Busan!

Pic: Cryptorobby, Einstein

South Korea´s largest telecom company KT Corporation announced today that it has been selected as an agent for the operation of Dongbaekjeon, a Busan-based local currency with annual issuance of €230 million (300 billion won).

KT and the Busan Metropolitan Government plan to officially launch the Dongbaekjeon, which is a blockchain-based card-type local currency issued to revitalize the Busan regional economy and ease the burden of small business management.

One can apply for and charge cards at Dongbaekjeon mobile applications, Hana Bank and Busan Bank , and they are available at all stores in Busan with credit card terminals and ATMs. For the moment the use is limited to department stores, large discount stores, corporate supermarkets and gambling shops.

Pic: Cointelegraph

Busan, South Korea’s second most-populous city after Seoul, is considering the launch of a local cryptocurrency, Korean tech news publication ETnews reports July 1, 2019.

Specifically, Busan intends to issue the cryptocurrency in the form of stablecoin, a cryptocurrency pegged 1:1 to the local currency. By issuing a local digital currency, Busan expects to revive the local economy, as well as to secure the leading position in blockchain

In April, South Korea’s Ministry of Small and Medium Businesses (SMEs) and Startups said that the government plans to provide “extensive support if Busan develops its own blockchain-based currency structure or token economy.”

Earlier in February 2019, Busan signed a Memorandum of Understanding (MoU) with blockchain company Hyundai Pay with the purpose of promoting blockchain industry through “contribution to the development of local ICT industry through mutual growth with related start-up businesses.”

Yoo Yong-gyu, KT’s business center director for blockchain, told news agency Decrypt:

With our know-how of operating a regional currency and blockchain security, KT will work towards establishing Dongbaek Currency and contributing to the growth of Busan’s economy.

Yoo Yong-gyu, KT business director for blockchain

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Crowdlitoken sets new standards in Real Estate financing.

Crowdlitoken is a Liechtenstein-based blockchain startup with its headquarters in the town of Triesen. Since 2018 this young real estate company allows investors to participate in a European core real estate portfolio. Investors can select their properties, determine their individual risk-return-profile and choose freely between cash flow realization and capital growth.

This represents an evolution in the world of financial products. New technologies are enabling us to launch a first-class product that not only offers new investment opportunities, but also remedies inefficiencies, cuts costs and safeguards transparency.

Crowdlitoken CEO Domenic Kurt

The CRT token

Crowdlitoken offers a digital representation of a subordinated bond, whereby both the bond and the underlying real estate is digitised via blockchain. The token – named the “CRT” – replicates the income streams and the value changes of the real estate properties. Holders of the tokens can select their properties to invest in and thereby tailor their portfolio. The ability to invest small amounts in selected European real estate, the easy tradeability on digital stock exchanges (in preparation) and the investment flexibility are key innovative features of this unique real estate investment product.

Why Liechtenstein?

Blockchain legislation is very advanced and pursues an open approach to regulating the token economy, which is still in its infancy. In addition, Liechtenstein is member of the European Economic Area which facilitates and allows access to the EU market.

The tokenisation of the European real estate market:
Crowdlitoken uses blockchain technology, digital processes and so-called tokenisation to invest in real estate. The advantage for investors is that the hurdle for an investor friendly lies as low as EUR 100 per investment, which is much lower than usual investment ticket sizes. The attractive real estate asset class remains interesting for qualified investors, but is now also being democratised for small and occasional investors and is therefore opening up to new target groups with smaller funds available.

In addition, the newly designed digital investment platform is quite flexible and surprises with some additional innovations. Investors do not necessarily have to invest in a whole basket of European properties, but can instead focus on one or more properties of their choice.

Crowdlitoken published a whitepaper where details on risks, token distribution and rights of token holders are described.

At the center is a regulated bond with Crowdlitoken:In mid-April 2019, the Liechtenstein Financial Market Authority (FMA) approved the prospectus for public distribution by Crowdlitoken. As part of the marketing authorisation for retail investors, the company launched the public sale of the security token in what is called STO (Security Token Offering).

First the STO, then the real estate portfolio
The low hurdle for investments in selected European properties (from 100 Swiss francs or EUR equivalent), the tradeability and the flexibility of the digital bond are remarkable innovations of this real estate investment product and are likely to meet with interest.

Crowdlitoken has brought experts in real estate and international finance on board to ensure that this does not remain a matter of interest but is followed by concrete actions and investments. Lawyer Hans Kuhn, former Head of Legal Affairs and Services at the Swiss National Bank (SNB) and current board member of Crowdlitoken, has ensured that the Security Token meets all regulatory and legal requirements.

The founders plan to generate 100 million Swiss francs with the STO. As soon as the sum of CHF 45 million has been reached, the development of the real estate portfolio is to start – initially in Switzerland and Germany, with other European countries to follow later.

And Switzerland!
Switzerland will not be left out: Swiss Financial Market Supervisory Authority (FINMA) confirmed that there is no license necessary for Crowdlitoken in Switzerland. The start of trading is planned for the second quarter of 2020 via the SIX Digital Exchange (SDX), which has been under development for some time and is currently being set up by SIX.

Crowdlitoken joined The Security Token Alliance
The Security Token Alliance, an alliance that brings together organisations advancing the security token industry, recently announced that CROWDLITOKEN is among the latest to partner with the Alliance. The Security Token Alliance is founded on the belief that the present and future of digitized securities will benefit from wide participation in projects and an ecosystem for stakeholder connections. The organisation was founded in May 2019 by Frederik Bussler who is also member of the European Commission’s AI Alliance.

New expert on board:
On October 29th, 2019 it has been announced that Renato Fassbind will join as new members of the Board of Directors. Top expert Fassbind will also sit on the Board of Directors of its subsidiary Crowdlitoken AG. The former top executive of various major Swiss corporations, such as Credit Suisse and ABB, is impressed with the business model, strategy and technology of the fintech company based in Triesen, Liechtenstein.

On the topic of his newest commitment, Renato Fassbind states:

What I like most at Crowdlitoken is the business model, the technological orientation and the unerringly consistent strategy. I also feel a strong belief in the product, which permeates from the Board of Directors through to the management and to the employees.”´

Renato Fassbind holds several positions on the boards of directors of Swiss companies, he is Vice President of reinsurance company Swiss Re AG in Zurich, is a member of Nestlé S.A. and transport giant Kuehne + Nagel International AG.

The advantage of blockchain
A blockchain-based system brings along the advantage that one can invest in the bond in Swiss francs, euros or the crypto currency Ethereum (ETH). Similar to a real estate fund, annual management fees of 0.75 percent as well as a further three percent are charged for purchase or sale. In addition, there is a success fee in the positive case.

Since all data is checked and tracked using blockchain technology, transparency is significantly increased and there is no need to go through an intermediary, which further reduces any charges. Meanwhile, this puts a stop to potential fraud and manipulation.

However, to my opinion this does not mean that the bond is safe for investors. One shall always have in mind that it bears a double risk: On the one hand there is the usual investment risk of a real estate investment similar to a real estate funds or real estate shares. If there is a collapse in prices on the real estate market, which can never be completely ruled out, investors would have to reckon with investment losing significantly in value.

In addition, a risk is associated with the innovative financial instrument of a security token. It is not yet possible to assess whether the new financial vehicle of a security token will prove its worth because experience is simply lacking. In particular, it is not possible to estimate how the instrument would react in case of market distortions.

When it comes to security, one should be aware that although one invests in real estate, Crowdlitoken is registered in the land register for the properties. In the event of a crisis, you would have to assert possible claims against the company and would not be secured by land register law yourself.

Against this background, I would not invest money which you would need to save for buying a new home or financing your children’s education or even saving for retirement! I can generally only recommend investing in such a new instrument very cautiously and not take any unnecessary risks if possible.

If you are convinced of the bond, you could at best invest a small amount in it, but not the entire capital you have available because otherwise you would be running a cluster risk with imponderables, which I would definitely prevent. However, given the fact that some banks are thinking of charging for money being deposited, we need alternative investment options.

About CROWDLITOKEN AG
CROWDLITOKEN AG is a Liechtenstein-based start-up that provides investors with access to European core real estate via blockchain technology. This is based on real estate-linked security tokens – termed “CRTs”, CRTs are fully compliant and combine the advantages of direct and indirect real estate investments.

Legal disclaimer:
Paid content. The advice here given is not a financial advice even though my excitement might make it look like such. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence.

Website: https://crowdlitoken.com/
WhitePaper: https://crowdlitoken.com/about-crt/downloads/
News: https://crowdlitoken.com/what-are-security-tokens-and-how-are-they-changing-the-future-of-investing/

Social Media:

Instagram: https://www.instagram.com/crowdlitoken/
LinkedIn: https://www.linkedin.com/company/crowdlitoken/
Twitter: https://twitter.com/crowdlitoken
and of course Facebook: https://www.facebook.com/CROWDLITOKEN

Telegram Chatgroup: https://t.me/crowdlitoken

#CrowdliToken #BlockchainForRealEstate #RealEstate #ReturnOnSociety #CryptoRobby

Top 10 Korean Blockchain Startups – Best of 2019

Even though regulatory hardship and very hostile framework for blockchain ventures Korea has a thriving blockchain ecosystem. Industries involved in applying blockchain are FinTech, insurance, logistics, health, social media, and IP rights. The messaging service Kakao – Korea´s WhatsApp – debuted a Blockchain platform called Klaytn, Line Corporation (Subsidiary of Naver) introduced its own cryptocurrency (Link Token), and Samsung revealed their cryptocurrency wallet for their Galaxy S10.  Korean Blockchain startups are also continuing to drive Blockchain adoption in Korea. Below some of the most popular blockchain startups, it is by far not complete an reflects my very personal views:

1. ICON Foundation (ICONLOOP)

Korean Blockchain Startup Icon

ICON is the largest and most popular blockchain network in Korea.  It has a vision of building a digital nation known as the ICON Republic where disparate and heterogeneous communities with differing economic, social and governance ideals can interact seamlessly over the ICON network through the unique implementation of BTP (Blockchain Transfer Protocol). The protocol will enable blockchains within the ICON network to exchange value similar to that of a decentralized exchange. Service invocations are also possible, where the execution of a smart contract on another blockchain will share the same result. BTP further enables horizontal scaling similar to the side chain approach. Bridging communities allows for value and information to be shared seamlessly across the network, thus empowering the next evolution of the digital transformation.

ICON implemented projects with the Seoul Metropolitan Government, National Election Commission, and Kyobo Life Insurance among others.  ICONLOOP is the developer of Loopchain, a technology to connect different blockchains separately developed by individual companies.  Their focus in 2019 will be on IRC16.  The IRC16 is a newly added token standard based on ICON’s public blockchain network.  In addition, they will focus on ICON’s Decentralized Exchange (DEX) for p2p exchange between ICX and IRC2.

Min Kim is Co-Founder, he has a background in FinTech and Deutsche Bank and many years of experience with blockchain projects.
Josh Choi COO  holds a degree of Korea´s renomated Yonsei University and gained experience at the UN International Telecommunication Union.

ICON token ICX is listed 52th at coinmarketcap.com and has a market cap of US$ 100 million.

2. Terra

Korean Blockchain Startup Terra

Korean Blockchain startup Terra aims to create a stablecoin that can be used on Terra’s Blockchain payment solution.  Therefore their focus is to create the next generation modern financial system on the Blockchain.  Their focus in 2019 will be to target e-Commerce platforms through the Terra Alliance which is a group of global e-Commerce partners (TMON, Woowa Brothers, Baedal Minjok, and etc) to help drive mass adoption and the use of Blockchain payment systems.  In addition, they have already created their own Blockchain-based simple payment service called Terra Pay.  The potential Terra could go beyond e-Commerce and into all types of financial products like loans and insurance.

Terra has been aggressive in their partnerships to bring in eCommerce companies to join their Terra Alliance ecosystem.  Sinsang Market is a business to business fashion platform that will work with Terra to create a payment system that uses the Korean mobile payment service CHAI.  Terra’s platform offers better order settlements, payments, and deliveries through CHAI.

Terra was able to close a $32 million funding round led by major cryptocurrency exchanges like OKEx, Huobi Capital, and Binance Labs

3. Xank.io

Xank is the only cryptocurrency that works like a stablecoin while having investment value. Xank offers a very unique Stable Pay feature which allows to spend, send, and hold the free-floating Xank cryptocurrency as a price stable currency. This payment currency has been founded by

Founder of this to my opinion very unique and promising project is Ryu Hyun KIM, CMO is experienced Ryan Sungshin LEE

4. Medibloc

Korean Blockchain Startup Medibloc

Korean Blockchain startup Medibloc that uses Blockchain technology for the healthcare data system.  It is very difficult for healthcare providers to get the complete data of a patient.  Therefore this complete data is important for getting an accurate diagnosis for the most effective treatment.  Furthermore, MediBloc provides a data integration system that gathers patients medical information through real-time updates.  In addition, the patients are in control of their medical records.  The records are kept confidential according to HIPPA regulations.  Therefore, the patients are the ones who can grant access to their personal medical data.

MediBloc offers a secure and transparent data storage system.  Therefore, all new entries come with a location and time stamp.  The MediBloc system their own token called MEDX which will serve as the primary medium of exchange between all users on MediBloc.  MediBloc has strategic partnerships with many institutions in both the healthcare and financial industries.

In 2018, MediBloc raised over $10 million through an ICO and will look to get institutional investments in 2019.

Co-Founder is LEE Eunsol who has a background as medical doctor.

5. Blocko

Korean Blockchain Startup Blocko

Korean Blockchain startup Blocko that focuses on providing a Blockchain system for transaction validation, user authentication, wallet management, and micropayment solutions.  Blocko has been working with Bank of Korea to help them use blockchain technology for their financial transactions among consumers.

Blocko builds and supports its hybrid Blockchain AERGO Enterprise which allows companies to build applications and services by sharing data on a trustless and serverless IT ecosystem.  AERGO Enterprise offers a greater level of security, scalability, and performance.  Blocko has built over 20-full scale Blockchain implementations on private and public Blockchain ledgers.  For 2019 they will focus on implementing a Blockchain solution for land registry in South Korea.

Blocko was able to get $9 during the last round of funding in June of last year.

6.  Haechi Labs – Henesis

Korean Blockchain startup Haechi Labs

Korean Blockchain startup Haechi Labs is an expert for smart contract audits.  They have done audits for Ground X’s Klaytn and have worked with them on their launch of their mainnet.  Their focus for 2019 will be on their Blockchain SaaS solution called Henesis.  Henesis removes technological barriers for companies looking for Blockchain adoption.  Therefore, the solution will reduce the time and cost involved with Blockchain development. In addition, companies will be able to easily collect, process and deliver their Blockchain data in real-time.  Their solution has already been tested with Shinhan Bank.  Their aim is to be an all-in-one platform for Blockchain integration.

7.  Kodebox (CodeChain)

Korean Blockchain Startup Codechain

Korean Blockchain startup CodeChain is a Blockchain network with a built-in issuance and exchange protocols.  Therefore, now digital assets issued on CodeChain can be programmed and customized so that it can comply with the regulations of a particular country.  In addition, their mobile wallet offers a simple verification process, easy to use interface and fast/secure transactions.

CodeChain is the only project that is funded by two of the biggest exchange operators in Korea (Bithumb and Upbit).

8.  Scanetchain (Inxight)

Korean Blockchain startup scanetchain

Korean Blockchain startup Scanetchainrecently launched their new DApp Inxight, their new AR Blockchain platform.  Inxight is an open-source platform which combines advertisements, search engines, and e-Commerce platforms.  They use AR technology to identify products both online and offline by assigning a scannable market for each product or image.  Furthermore, Inxight uses its SWC token for payments or discounts.

Their “beta” version of their marker scanning reward system will be available in the next software update.  Inxight aims to change the way people search for things.  Scanetchain has been aggressive in entering into a number of strategic partnerships to grow the ecosystem and bring greater value to their users.

9.  FANTOM Foundation

Korean Blockchain startup Fantom Foundation

Korean Blockchain startup FANTOM Foundation is a non-profit organization that is building an infrastructure for decentralized global finance.  They do not use Blockchain but rather an approach called a directed acyclic graph (DAG).  They have a DAG-based distributed ledger technology (DLT) that incorporates new methods for scalability with a high-performance virtual machine for a more secure smart contract execution.  The networks aim is to build an infrastructure to power smart cities, IOTs, and offer faster payment solutions.  Furthermore, it could be a secure and efficient platform for public utilities, medical records, healthcare services, identity storage and more.

10.  Cosmochain (FitsMe)

Korean Blockchain Startup Cosmochain

Korean Beauty blockchain startup Cosmochain is the creator of a Blockchain-based app service called FitsMe.  FitsMe is a personalized beauty recommendation service that uses past purchase data and preference data to recommend the best cosmetic products.  They already have attracted over 150,000 users from their beta service.  Furthermore, they got $2.5 million in investments from a U.S. hedge fund.  Samsung Electronics also selected Cosmochain as an initial DApp partner for its Galaxy S10  smartphone.  In addition, the Galaxy Keystore, the cryptocurrency wallet for the Galaxy S10, supports CosmoCoin (COSM), the cryptocurrency used in FitsMe.

I also like Zikto (Insureum)

Korean Blockchain Startup Insureum

Korean Blockchain startup Zikto is the company behind the Insureum Protocol.  The Insureum Protocol uses Blockchain technology to provide insurance companies with the data to create better policies.  Zikto started out as a smart wearables company that did a great job of collecting data.  In 2017 they partnered with KB Bank to launch “The Challenge” program that offered KB Kookmin cardholders rewards for their fitness data (walk count).  The program ended in mid-2018 and was a huge success.  Zikto looks to create a decentralized ecosystem that connects insurers, their policyholder, and third parties through the Insureum protocol.

Three Facebook Libra supporters distance themselves from project

A substantial number of backers of Facebook’s Libra cryptocurrency project are said to be considering backing out due to growing pressure from regulators.

According to a report from the Financial Times, in particular three firms – which were not named – expressed concerns over being seen to be linked to the project after regulators and politicians around the world raised concerns over its potential threat to financial stability.

While Facebook’s Libra project was said to already have 28 founding partners when unveiled last month, that isn’t quite the case, according to Visa’s CEO and board chairman, Alfred F. Kelly, Jr. Therefore VISA is considered to be amongst the three who now seek withdrawal as an option. In a Q3 2019 earnings call, VISA CEO Kelly responded to a question on his firm’s involvement with the Libra project from Bryan C. Keane, an analyst at Deutsche Bank Securities.

Keane asked, “Just wanted to ask on Facebook’s Libra, there’s some confusion in the market on how to think about that. Is it a strategic partner for Visa or potential disruptive threat? Just curious your thoughts and level of expected Visa involvement in Facebook Libra.”

Playing down the firm’s involvement with Libra, Kelly responded that “it’s important to understand the facts.”. He continued:

Going forward, the decision to fully join Facebook’s cryptocurrency project would be decided by a “number of factors, including obviously the ability of the association to satisfy all the requisite regulatory requirements,”

As suggested, since its release of a Libra white paper in mid-June, Facebook has been defending itself from a storm of calls from regulators worldwide for more information on how the scheme would work, amid concerns over what affect it could have on financial stability and users’ privacy.

The EU was recently reported to have even moved to investigate the Libra Association over potential antitrust issues. Over in the U.S., lawmakers have called for Libra to be halted until regulatory issues have been addressed.

As a result, the firms are considering pulling out of the Libra project, the FT said.

Since its debut in mid-June, Libra is said to have been joined by 28 member firms who have paid up to $10 million to be part of the project. These include major firms such as Visa, Mastercard, Paypal and Uber. Visa’s CEO revealed last month that the firms had signed “nonbinding letter of intent to join Libra,” and were not yet fully committed to the enterprise.

“It’s going to be difficult for partners who want to be seen as in [regulatory] compliance” to be publicly supporting Libra, one of the companies told the FT. A Libra backer also said that Facebook should have addressed the regulatory issues before announcing the project to lessen the “pushback.”

The frustrations appear to be going both ways, with the sources saying that Facebook itself is unhappy that the Libra Association members aren’t voicing support for the project.

“Facebook is tired of being the only people putting their neck out,” said one of the members.

Facebook and the Libra Association would not comment when contacted by the FT.

Facebook CEO Mark Zuckerberg image via Shutterstock edited by CryptoRobby

Source: Financial Times, Cointelegraph & CryptoRobby

Winklevoss brothers believe in Facebook’s Libra coin

Winklevoss twin brothers, co-founders of cryptocurrency exchange Gemini

Tyler and Cameron Winklevoss, co-founders of crypto exchange Gemini, admitted in an interview with CNN that they were ready to partner with Facebook for the Libra project.

Crypto enthusiasts Winklevoss brothers told CNN’s Poppy Harlow that they would close their eyes to their rivalry with Facebook’s Mark Zuckerberg for his cryptocurrency project Libra. Whether or not they reach a deal with the social media giant, the twins believe in Libra’s potential. They said that Facebook’s digital currency project was great for the market in a period when cryptos are everywhere. Cameron noted:

I think there is a day in the future where we can’t live without crypto, or imagine a world before crypto.

CNN Interview August 18, 2019

The potential collaboration between Gemini co-founders and Mark Zuckerberg might materialize despite their old legal fight over the origins of the social media behemoth and who should be called Facebook creators.

It should come as no surprise that Zuckerberg actually consulted the brothers when developing Libra.

Back in 2011, when the dispute began, CNN sarcastically predicted that the only thing that could stop “Winklevoss twins’ legal crusade against Facebook” was the end of the universe that is estimated to come in several billion years from now. In the end, Libra might become more powerful than the anticipated heat death. This is true at least in the context of Zuckerberg-Winklevoss brothers rivalry.

Besides, the twins took solace in their role in the rapidly growing crypto industry after creating Gemini.

Tyler Winklevoss explained:

Facebook was a dispute, but it didn’t really define who we were as people. Gemini’s much more of a representation of who we are, what we stand for, what we’re interested in.

Gemini might join Libra Association

The twins, once labeled Bitcoin billionaires, have been in talks with the social media giant about joining the Libra Association. The latter is a decentralized entity that should comprise 100 members by 2020. Facebook has already unveiled 28 founding members, including Visa, MasterCard, PayPal, and Coinbase.

Tyler and Cameron said they want to learn more about Libra before making the final decision. Besides becoming part of the association, Gemini might also list Libra when or if it gets launched. Indeed, there is a minor possibility that Libra might never launch because of the regulatory pressure.

However, the Winklevoss brothers are confident in Libra’s future. Moreover, Cameron expects that each of the FAANG giants, including Amazon, Apple, Google, and Netflix, will get into crypto at some point.

Still, it is very surprising that the Winklevosses, one of the most serious enemies of Marc Zuckerberg now show interest in his most important project!

Source: CNN, Bitcoinist

Vocabulary of Ethereum 2.0

Ethereum is emerging from a little child to the teenager phase. This blockchain of Vitalik Buterin has hosted thousands of decentralised applications. More than 180.000 tokens have been created, most of them for testing purposes but still 2000 of them still actively traded and found on coinmarketcap.com

The next stage of this blockchain is called SERENITY or  Ethereum 2.0. It is the long awaited  Proof-of-Stake version, together with some huge upgrades on the scalability side. When you have a more thorough look into Serenity (or Ethereum 2.0!), the first impression is the abundance of completely new terms. What is a crosslink? Is a slot a block? No, it isn’t. Is an “attestor“ the same thing as a “validator“?

Below you finde the most used terms in Vitalik´s new ETH sandbox two point zerooo. This list is focuses on the most prominent details you might have questions about.

Beacon Chain

one chain to rule them all proof-of-stake chain includes beacon blocks the consensus layer for everything manages validators applies rewards and penalties serves as an anchor point for the shards through cross-links

Shards

1024 of them semi independent chains include shard blocks periodically the state of the shard blocks is recorded on the beacon chain through crosslinks once a block on the beacon chain is finalised, the shard blocks referenced in the included crosslinks are considered finalised each shard has a committee of validators attesting blocks

Crosslinks

a summary of the shard’s state only reference of the shards in the beacon chain

Slot period of time in which a block proposer propose a block for attestation slots might be empty slots are filled with attested blocks

Epoch

a number of slots (currently 64) after which validators are reshuffled in committees

Validators

users that have deposited 32eth in the validator deposit contract and run a validator node they can be inactive (don’t run as an actual validator yet), active (validating), pending (opted into becoming a validator but stuck in the entry queue) and exiting (no longer want to validate and stuck in the exit queue)

Block Proposers

random validators chosen by the beacon chain to propose blocks for validation/attestation there will be one block proposer per slot for the beacon chain and one proposer per slot for each of the shards

Attestations

votes in regards to the validity of a shard block or beacon

Committees

random groups of validators chosen by the beacon chain to attest the validity of blocks (beacon & shard) target of minimum 128 validators per committee

ETH2

base currency of the beacon chain will be obtained initially from rewards and by locking ETH1 in the validator deposit contract

Validator Deposit Contract

smart contract on the POW chain (in our case, the Ethereum Mainnet) once ETH1 funds are locked in this smart contract, and event log is emitted that should be read by the beacon chain and the same amount of ETH2 should be allocated to the account, now considered a validator this mechanism might change in the future until phase 2 ends the transfer of ETH1 to ETH2 is a one way street, can’t get ETH1 back, but there is an escape hatch to sell your stake

Ethereum 2.0 phases

Phase 0 — The beacon chain

managing validators and stakes organizing and electing committees and proposers applying consensus rules rewarding and penalizing/slashing

Phase 1 — Shards

constructing the shard chains and blocks anchoring (cross-linking) shard blocks to beacon chain

Phase 2 — Execution Environments

eWASM 

based virtual machines for execution. 

one per shard. ability to make transactions

ability to run and interact with smart contracts

cross-shard communication

Authoritative info is hard to come by on this subject so many thanks to Ben Edgington for setting me straight on some of the things above. Would also like to thank Danny Ryan and Everett Muzzy for additional corrections.