Connect with us

Cryptocurrencies

BoE’s Mark Carney: Digital currency “could dampen the domineering influence of the U.S. dollar”

Published

on

  • The world economy is being reordered and the US dollar effect cannot be ignored.
  • Mark Carney believes that a central bank-backed digital currency could displace the US dollar as the domineering currency.

The influence of the US dollar has been felt for over a century. A looming recession in the United States economy is sending jitters around the world. In his latest comments at the Economic Policy Symposium, the Bank of England governor Mark Carney believes that a central bank-backed digital currency could displace the US dollar as the domineering currency in the world.

“While the world economy is being reordered, the U.S. dollar remains as important as when Bretton Woods collapsed,” Carney stated.

The governor is open to suggestions that would replace the US dollar. In fact, he went ahead to suggest a digital currency supported by an association of central banks. Carney said:

“It is an open question whether such a new Synthetic Hegemonic Currency (SHC) would be best provided by the public sector, perhaps through a network of central bank digital currencies.”

He added:

“An SHC could dampen the domineering influence of the U.S. dollar on global trade.”

Although Carney did not directly mention cryptocurrencies, he admitted that new technologies offering efficiency and lower transaction costs are coming into play to disrupt the traditional system.

“The relatively high costs of domestic and cross border electronic payments are encouraging innovation, with new entrants applying new technologies to offer lower cost, more convenient retail payment services,” Carney explained.

News Source

Cryptocurrencies

Cryptocurrencies slightly up, will buyers come in?

Published

on

Cryptocurrencies start the week on a positive note after a weekend dominated by sideways movements. Bitcoin (+0.33%) struggles to keep on the positive side after another sharp selloff 9 hours ago. Ripple(+6.54%), helped by the bad news of its rival Libra, took the way up, followed by Tron (+5%) and ATOM (+8%). Ethereum (+1.7%) and Litecoin(+1.65%) are moving more cautious. On the Token sector, ODE (+21%), CENNZ (+18%), DGD(+15%), and ZRX (+9.7%) are the movers of the day.

Coin

The market capitalization is $225.9 billion (+0.94%) at the moment of this writing, and the 24H volume was $22.24 billion, and the dominance of the Bitcoin is 66.48%.

Market

Hot News

The SEC has halted the 1.7 Billion GRAM token offering. According to Cointelegraph, the regulator has filed an emergency action and limiting order against two offshore companies alleging the tokens were unlawfully sold. As a result of this action, US investors will be unable to acquire GRAMs.

Zuckerberg will testify before the US Congress regarding the Facebook Libra project. The scheduled date for his testimony in front of the House of Representatives Financial Committee is Oct 23.

A Class Action against Tether and Bitfinex accuses them of market manipulation. The firm behind this says the stablecoin firm and the crypto exchange defrauded investors by manipulating markets.  “[the firm] issued extraordinary amounts of unbanked USDT to manipulate cryptocurrency prices.”

Technical Analysis

Bitcoin

Bitcoin

During this weekend, Bitcoin moved mostly sideways. Then, on Sunday evening, it started a weak recovery that ended in a sharp selloff that pushed the BTC to its recent support of $ 8,250. We see the price has made a lower high in the 4H timeframe.

MACD is moving down, and the price is on the lower side of the Bollinger. That and the recent selloff on higher than usual volume makes us think sellers still dominate the cryptocurrency.

Supports: $8,250, $8,200, $8,000

Resistances: $8,450, $8,530, $8,700

Ripple

Ripple

Ripple seems to like Facebook Libra difficulties. After finding support near the area marked by the dark-blue rectangle, XRP followed the path of its 50-period MA to test and successfully pierce the $0.28 resistance.

We see Ripple’s price currently overbought, but we can also observe an increment of the momentum that may help drive the price to a test of the $0.30 level.

Ethereum

Ethereum is currently moving in a range between $176 and $186 after the sharp drop made by the rejection of the $196 level.  To assess any direction, we should see how this range is resolved.  The case for the downside is supported by the sharp selloff made last Friday. The case for the upside can be explained by the fact that the price is still above the ascending trendline (amber) and that the area of its previous highs currently holds ETH.  The key levels to observe are the obvious $176 and $186.

ATOM

ATOM

Atom moves in a bullish trend, with its price above the 60 and 100-period MAs. Today, after breaking the triangular formation to the upside is moving slightly above the 2.98 level, starting another leg up marked by the Bollinger bands’ volatility increment.  MACD also confirms this outlook. The next resistance level to break will be the psychological $3 level. $ 2.8 marks the invalidation point od this scenario.


100% Anonymous Trading on EagleFX – Trade NOW!

Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.

source featured

Continue Reading

Cryptocurrencies

Zcash’s Halo Breakthrough Is a Big Deal – Not Just For Cryptocurrencies

Published

on

Michael J. Casey is the chairman of CoinDesk’s advisory board and a senior advisor for blockchain research at MIT’s Digital Currency Initiative.

The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday exclusively to our subscribers.


An underappreciated, sideline payoff from cryptocurrency R&D is that it also generates advances within the sector’s component technologies.

The most important are occurring within the field from which the term “cryptocurrency” derives. Cryptography – essentially, the study of mathematical secrets – is as old as the exploration of ciphers in ancient times. But in the past 10 years, thanks largely to the invention of bitcoin and censorship-resistant money, it’s seen an explosion of activity.

That’s especially in the sub-field of zero-knowledge proofs, which enable the verification of facts that are derived from a secret the verifier cannot access. These advances matter because zero-knowledge proofs offer the tantalizing prospect of people transacting in confidence without accessing potentially compromising information about each other. Its potential goes beyond the narrow realm of cryptocurrencies to face the ultimate challenge of the Internet age: achieving security with privacy.

This is why a breakthrough by the Electric Coin Company, the startup behind zcash, is rich with potential. ECC had already been an engine of progress for cryptography by advancing the use of zk-SNARKS, another cryptocurrency-inspired addition to the zero-knowledge proof toolkit, with which zcash produces a provably auditable blockchain without revealing users’ addresses (a disclosure note: Digital Currency Group, CoinDesk’s parent company, is an ECC investor).

But the company’s recent announcement of Halo, a “trustless recursive” version of zero-knowledge proofs that provides a massively scalable solution to the field’s unwieldy reliance on “trusted setups,” is arguably bigger. If the discovery by ECC researcher Sean Bowe holds up to scientific scrutiny, it could one day unleash a host of powerful, real-world applications for the digital age that go far beyond cryptocurrency.

Might it even achieve the impossible: lowering  the heat that zcash CEO Zooko Wilcox and his cofounders relentlessly receive  for the 20% founder fee built into the cryptocurrency’s protocol, a deal that has delivered them millions of dollars’ worth of tokens since the launch in 2016? The founders justify the fee on the grounds that it both pays for maintenance and rewards research and development to strengthen the protocol. For now at least, this looks like a discovery that ECC can flag as money well spent – not just for zcash, but for the entire crypto ecosystem.

A proof of proofs

Halo allows a user to both prove that no one involved in the initial establishment of a large-scale zero-knowledge proof system has created a secret backdoor with which to later amend the code and that that secure state has existed over the course of ongoing updates and changes to the system. Until now the risk of fraud at setup meant that zero knowledge proofs often required elaborate, costly procedures at the outset to instill confidence in users. (A prime example was the zcash genesis “ceremony” –  recorded live on YouTube and documented in an entertaining episode for NPR’s Radiolab  – when various founders and outside particiapants based in multiple locations went to extraordinary lengths to jointly and securely create the initial key pair and then demonstrate that none of them would ever have access to the private key.)

As such, zero-knowledge proofs were too cumbersome for anything other than privately proving small one-off facts. Repeating the inefficient, time-consuming trusted setup over and over again was costly. To be sure, one-off trustless solutions known as “bulletproofs” have been around since 2017, but they lack the recursive quality needed to verify the ever-accumulating information within a large, growing changing database.

Halo gets around this problem by establishing an accumulated “proof of proofs,” such that the latest mathematical output contains within it a proof that all prior claims to the relevant secret knowledge have themselves been sufficiently proven through a similar process. In a dramatic compression in computational requirements, all that’s now needed to verify the veracity of the entire database’s current state is a single mathematical proof. (The way Wilcox explained it to me, the process sounded similar to the efficiency gains of Merkle tree structures, which aggregate previously hashed information into a single root hash output.)

Cheap full nodes

The scaling benefits of this lightweight proofing system were illustrated with a mid-September demonstration by the EEC team using the bitcoin blockchain.  They generated a proof of the current block’s proof-of-work integrity that also contained proofs of the integrity of every preceding block, all the way down the chain to Satoshi Nakamoto’s genesis block of January 3, 2009.

In light of the  fraught debates  in the bitcoin community over full nodes, decentralization and block sizes, this sounds like game-changer material. While there will still need to be nodes that read the full blockchain to identify transactions, the overall task of verifying the integrity of a blockchain could become a much less costly problem for the network as a whole. Ordinary users could achieve the ease-of-use and efficiency they need but do so with their own full verification nodes. It would thus negate the need for so-called SPV wallets, which rely on others to verify on the user’s behalf and so create a trust problem. For the network, the result could be greater decentralization at a lower cost.

The ECC is planning to integrate Halo into the zcash blockchain as a Layer 1 scaling solution. If it works, the zcash network might much more cheaply handle significantly larger amounts of on-chain data. This is a markedly different approach to the scaling problem from the Layer 2 model favored by bitcoin supporters of the Lightning Network, where scale is achieved by taking transactions off chain. If it works for zcash, one wonders whether bitcoin cash developers will be tempted to integrate it into their protocol to lower the cost of maintaining the larger blocks they adopted in the contentious 2017 fork from Bitcoin Core.

Bigger visions

But it’s the potential for non-cryptocurrency solutions that makes Halo an especially exciting prospect. Wilcox even claims Halo “may turn out to be a building block for the next generation of the Internet and other such social infrastructure.”

In a conversation, he pointed to the vulnerabilities of large, ever-changing centralized databases such as that of the famously hacked credit scorer Equifax, as well as those of different states’ DMV outlets and of siloed medical record custodians. All must share information with other parties but struggle with the risks of doing so. “Now instead of them spitting out copies of a full report of the data, they keep the only copy but spit out zero knowledge proofs,” Wilcox said.

The ideal, however, would be to dispense with the centralized record-keeper entirely. Wilcox thinks Halo-like zero-knowledge proofs will pave the way. Taking the prior example one step further, he said, “What if instead of me saying ‘here is a proof that Equifax says I haven’t had any defaults over the last 10 years,’ I can say ‘here is a proof from all the 100 people that have lent to me over the past 10 years and each of them attests to me not having defaulted?”

Getting to such a utopia won’t happen quickly. Regulation, corporate incumbency and behavioral inertia will continue to pose resistance. And, to be clear, Bowe’s mathematical proof still needs to be subject to rigorous peer review.

But even if holes are found in the current iteration, they will be patched. Better versions will emerge.

The process of follow-on research that this discovery will unleash in all areas of the digital economy is undeniable. And if the world isn’t ready for such a radical reorganization of how we manage sensitive information, it will eventually be moved to adopt such changes by the relentless buildup of vulnerable databases and the ongoing attacks against them by increasingly sophisticated hackers. That’s a trend that led Juniper Research to recently assert that  cybercrime will cost the global economy a stunning $5 trillion a year by 2024.

The world badly needs fixes for these giant challenges. Cryptocurrency developers are doing as much as anybody to find them.

Continue Reading

Cryptocurrencies

Over 1000 Coins Dead In 8 Years: Long Hash Report

Published

on

Arecent study has revealed how the crypto ecosystem is becoming free from a collection of coins affiliated with projects with little or no business proposition, market traction, and ready products, more commonly known as “shitcoins”. According to the study, more than 1000 cryptocurrencies are now dead!

There Are Top Coins, Shitcoins And Dead Coins

According to a recent report, an average of 1000 cryptocurrencies has become extinct within the crypto ecosystem in 8 years. The publication featured reports from at least 3 other coin rating websites which make use of various collections of metrics to identify the usability and market performances of more than 2600 existing cryptocurrencies and use the results of the same to categorize these coins along the lines of priorities ranging from ” Top” coins to “shitcoins” then to the extreme “dead coins”.

According to the survey,

Cointopsy currently lists 705, DeadCoins lists 1,779, and CoinMarketCap lists over 1,000 projects with less than USD $1,000 per day in trading volume, which certainly puts them in the category of “dying” if not “outright dead.”

dead crypto

The numbers of dead coins within 8 years came to be derived amid varying factors like period of project survival, daily trading volumes of coins and coin popularity. In terms of a period of survival, according to Cointopsy, many dead projects survived only about 12 months. Going by their supposed “start” and “end” date, abandoned projects, those which actually kick-off but eventually lost investor’s interest were reported to last longer. This kind of project, according to the survey lasted for about 18 months. Failed coins last 14 months while scamming coins, 12 months.Advertisement

Why There Are So Many Dead Coins?

The report lists a series of factors responsible for the death of cryptocurrencies. The most important being “death by abandonment”, other factors include outright scam projects. According to findings, some popular scam projects were perpetrated repeatedly by the same set of scammers presenting a couple of projects.

coin dead
Source: Longhash

A typical example, according to the survey was to bitcointalk forum members; named “Crunck” and someone named “Daniel Mendoza” is each named as having founded three different dead alleged scam projects on the list (although again, this data is curated from crowd-sourced suggestions and may not be accurate).

News Source

Continue Reading