Ripple CTO David Schwartz says a realization about Bitcoin’s “secret sauce” led to the creation of XRP. At SXSW in Austin, Texas, Schwartz expanded on what brought him to the world of blockchain and cryptocurrency in the first place.
“When I first saw Bitcoin it was one of those things where you could almost call it love at first sight. I saw the technology and I thought wow, there’s really something here. And I wanted to learn everything I possibly could about it, and I found the communities, looked at the source code.
And I happened to be a little bit lucky that there was a problem at the time. This was just around the rise of mining pools and the software was never designed to handle mining pools. So a lot of people were complaining about performance issues in the software, and one of the things I specialized in was improving the performance of software. And I saw these bounties. Mining pools were like, ‘I’ll pay 10 Bitcoins if someone can fix this problem. I’ll kick in 15 Bitcoins if someone can solve that problem.’ And they were worth about $15 a piece, so that was real money…
So I explored for the direction of solving that problem that mining pools have. So I solved the problem, and they paid the bounties. And it’s kind of funny – when I went to buy a house in Oakland, I used the bounties as the deposit. And it was the first time Wells Fargo ever had to do the provenance of funds. It actually went to the posts on the Bitcoin forums, where people had offered the bounties and I claimed it.”
According to Schwartz, the epiphany that led to the creation of the XRP Ledger centered on the notion that the public ledger is the core innovation that makes Bitcoin revolutionary.
“When we looked at Bitcoin, I think a lot of people in the community thought that proof-of-work was the secret sauce, or the magic element of Bitcoin. And what I and a few other people – Jed McCaleb realized this first – and that was the key insight of his that led to the formation of the XRP Ledger and ultimately Ripple – was his insight that proof-of-work was not the secret sauce.
The secret sauce of Bitcoin is that all of the state information is public. The ledger is completely public. You can see every transaction, every balance. Everything is public. And what that means is you don’t have to take anybody else’s word for anything. If someone submits a transaction, you can check if it’s valid. You can figure out what it does all by yourself.
And that was the sort of decentralization magic, and that proof-of-work was just the way that it solved the double spend problem, the idea that if I have one Bitcoin, what if I try to send it to two different people? And that kind of led to this idea that there might be other ways to solve the double spend problem that might have different characteristics from Bitcoin.”
“Use case fit? We have that in payments. Make no mistake, these things work for particularly international or cross-border payments because domestic payments in most parts of the world work pretty well.
Although there are exceptions. I’m sure most of you have heard of PayPal or Venmo. They’re owned by the same company – they don’t interoperate. Clearly, that’s an example of domestic payments that don’t work. But I think the cases where they don’t work are the exception. International payments are where we really have product market fit right now.”
As for additional uses for blockchain and crypto, Schwartz says it may take a minute before companies wake up to the true benefits of the technology.
“Centralized databases are expensive. I was talking to some pharmaceutical companies who are looking for a database application that involves tracking the movement of their goods. And they were quoted many millions of dollars by companies whose job is to provide centralized databases. Well, you can stand up a private Ethereum node if you want. A couple of them. It’s much cheaper and the reliability is higher.
And I think also the security difference – people will say there are applications where security isn’t super critical. But what I think they miss is the fact that certain types of attacks are fundamentally impossible on blockchains. Any attack that involves injecting fake data is absolutely impossible on a blockchain, where it’s possible on a database.”
Bitcoin will drop to $3,500 before we see a major bull run, says trader
While Bitcoin has managed to hold above $4,000 according to Coinmarketcap, one trader believes that BTC will drop to $3,500 before the next bull run.
Speaking to CCN, crypto trader known as The Crypto Dog in the community said that it’s still possible Bitcoin sinks to $3,500 in the short term, adding that market conditions haven’t changed over the last several days.
“I think we could still see $35XX,” the trader said, adding, it [Bitcoin] hasn’t changed much. It wasn’t a particularly significant move. It bounced at a clear support, but there’s been no positive reaction yet. If this support holds, I expect a sweep of the highs near $4,100-$4,140.
“Decent chance we just saw that ‘one more leg up.’ I greatly reduced exposure up here above $4,000. Waiting for $3,5XX for long entries. I’d love an opportunity to short $4,1XX, but not sure if we’ll see it,” he said.
Bitcoin’s struggle to maintain momentum is likely the reason for cautious optimism shown by traders and analysts.
Recently, technical analyst knew as DonAlt explained that we can’t safely conclude the bear market is over until Bitcoin breaks out above $4,600.
Bitcoin SV [BSV] Price Analysis: Bears dominate market as token’s downtrend continues
Bitcoin SV [BSV] continued its bearish run on the back of the collective market dropping below the $140 billion mark. After two successive bullish waves in the past week, the coin market turned red.
At press time, the BCH hardfork fell against the US dollar by 1.26 percent, and was trading at $65.88. The market cap of the coin stood at $1.16 billion, trailing Cardano [ADA] by over $220 million.
Bitforex took the top spots with respect to BSV trade volume, via the trading pairs BSV/USDT and BSV/BTC. The pairs accounted for 12.28 and 12.17 percent, respectively. Other notable exchanges on the list were HitBTC, IDAX, and IDCM.
The one-hour BSV chart showed a massive downtrend stretching from $68.71 to $66.32, with the coin dropping further below. The sole uptrend was prior to this drop when the coin rose from $67.71 to $68.71.
Bitcoin SV found immediate support at $64.55, which the coin was hovering above. The immediate resistance level stood at $68.77.
The Bollinger Bands pointed to a massive increase in volatility as the price declined. The Moving Average line indicated a bearish swing.
The Chaikin Money Flow tool showed a decrease in the money inflow to BSV tokens as the CMF line was below 0.
The Awesome Oscillator showed a significant decrease in short term market momentum, but the concluding bars being green indicated an imminent bullish change.
Bitcoin SV saw two downtrends, with the first downtrend shaving the price from $75.71 to $67.15. The second downtrend pulled the price down from $70.39 to $67.65.
The coin found immediate support at $61.72, which the coin touched in February. Bitcoin SV’s immediate resistance level stood at $75.65.
The Parabolic SAR indicated a bearish market, as the dotted lines were above the coin’s trend line.
The Relative Strength Index showed a notable decrease in investor interest as the RSI dropped down from 55.65 to 46.38, at press time.
The MACD continued projecting bearish signs as the MACD line pushed below the Signal line.
Bitcoin SV failed to hold on to the bulls as the coin’s price declined below the $70 mark. In the short term, the coin’s volatility was high, while the money inflow dropped. Short-term momentum was negative, further pointing to the resoluteness of the bears. In the long-term, the MACD and the Parabolic SAR indicated a bearish market.
Bitcoin Price Drops Back Below $4K But Bull Outlook Still Intact
- Bitcoin failed to capitalize on a bull breakout above $4,040 yesterday, but the short-term outlook remains bullish as the higher-lows pattern is still intact.
- A convincing break above the three-day chart resistance of $4,040 still looks likely and could be followed by a rally toward the recent high of $4,190.
- The immediate outlook would turn bearish if prices find acceptance below $3,920 (previous day’s low). A bearish close, if confirmed, could yield a drop to $3,700–$3,658 (Feb. 27 low).
Bitcoin (BTC) has dropped back from levels over $4,000, but the short-term outlook will remain bullish as long as prices are holding above key support at $3,920.
The crypto market leader jumped to a 25-day high of $4,055 yesterday, having secured a bullish UTC close above the psychological hurdle of $4,000 on Wednesday, going by Bitstamp data. The breakout above the crucial three-day chart resistance of $4,040, however, was short-lived with prices falling back to a five-day low of $3,920 before closing the day at $3,974.
Notably, the negative price action engulfed the trading range seen in the previous four days, which is widely considered an early sign of bull exhaustion.
That said, the path of least resistance is still to the higher side, as the bounce from lows near $3,920 has left the bullish higher lows pattern intact along the trendline connecting the Feb. 8 and Mar.4 lows.
For the immediate outlook to turn bearish, the engulfing price action seen yesterday needs a strong follow through in the form of a convincing break below $3,920.
As of writing, BTC is trading at $3,980, representing a 1.28 percent drop on a 24-hour basis.
On the daily chart, BTC created a bearish outside reversal candle yesterday as trading began on an optimistic note but ended with pessimism.
A bullish-to-bearish trend change, however, would be confirmed only if prices close below $3,920 (low of the bearish candle) today. A move below $3,920 would confirm a downside break of the ascending trendline and shift risk in favor of a deeper drop toward the Feb. 27 low of $3,658.
On the higher side, a break above $4,055 would reinforce the short-term bullish setup and could fuel a rally toward the recent high of $4,190.
The odds of a rally toward $4,235 (inverse head-and-shoulders neckline) would strengthen if the current three-day candle closes (today) above $4,040, validating the bullish engulfing candle created in three days to March 16.
Disclosure: The author holds no cryptocurrency assets at the time of writing.