Connect with us

Blockchain

Centralizing Decentralization – The Devolution of Blockchain Freedom as an Inevitable Outcome of Market Development

Published

on

There are always parallels drawn between markets – whichever they be, as there are always guidelines that govern general investor sentiment and mathematical models dictating statistical means and norms. A perfect example is the correlation between traditional trading and the cryptocurrencies market, where near identical algorithms and forecasting models are used to predict chart behavior and trends. There is truly little innovation, regardless of the hype.

The same can be said of the founding principles of the blockchain market, such as total freedom, transparency, independence of third parties, decentralization etc. The parallels that can be drawn with such bold terms reminiscent of the French Revolution’s “Liberté, égalité, fraternité” can be found in what modern social networks like Facebook, Twitter and the others were once claimed to be. But, the latest events that have shocked social consciousness of the tyranny of social networks are clear illustration of the inevitable devolution of any system into total centralization. The same is already happening with blockchain networks.

A shining example of the encroaching centralization of blockchain is the Ethereum network with its 2.0 update that is aggressively pushing forth staking as the new consensus model. Freedom is never for free, as there is no such thing as free block generation. Running nodes is an expensive business and the data generation is never openly available to anyone, only to those connected to the network. Bitcoin is just as sinful in this regard, as mining gains difficulty with every halving and its growing costs are centralizing access to the data over time. This automatically negates the purpose of decentralization and its freedoms, raising the question as to whether blockchains are truly decentralized.

Advertisement

“According to our approach, the answer is “no”. Clearly, this approach can be debated, but it must be seen that data which is not within the blockchain cannot be considered abs olutely transparent. Nevertheless, the off-chain approach has its own place and value too, but one must see how it is different from its on-chain based counterpart,” as stated by Norbert Goffa, Co-founder and Executive Manager of ILCOIN Blockchain Project.

As such, another rightful question is whether decentralization, as the founding principle of the cryptocurrency market, has a decisive impact on crypto market conditions and the prices of major digital assets. If the virtues of blockchain are merely transparent philosophies acting as a canvas for profit-making on crypto trading, then there is really no sense in struggling for developing a fully decentralized system that would be independent from third parties.

“I believe that the cases mentioned above do not affect crypto-market conditions to the same extent that exchanges do. This is because even though we have a decentralized Ethereum or Bitcoin, what is it worth if we can only realize our business opportunities within the framework of a third party’s subjectively central regulation. In other words, decentralized cryptocurrency in a centralized system will turn into the same money as the operation of the banking system or any other regulators. Obviously, the essence of the decentralized approach would be to completely eliminate the possibility of third-party influence in the processes. The challenges that may accompany doing this is a different question to which only innovative solutions of the technology can provide reassuring answers,” as Norbert Goffa concludes.

Advertisement

News Source

Blockchain

The Best Blockchain Developers from All Over the World Will Gather for the International Blockchain-Tech Summit

Published

on

On October 27-29, 2021, the International Blockchain-Tech Summit will bring together the world’s best developers in the field of blockchain technologies and fintech on one online platform. Participants will share their experience and discuss the most pressing issues related to the creation of modern smart contracts, the development of digital currencies of central banks, as well as solutions for ETN2.

The speakers of the summit will be:

  • Ziv Keinan, Simetria;
  • Tron Black, Ravencoin;
  • Irina Karagyaur, Polkadot and Kusama, Head Ambassador for Western Europe at Polkadot;
  • Kevin Owocki, Gitcoin;
  • Gregory Markou, Chainsafe;
  • and many others

The top management of such companies as Celo, Unique, Gitcoin, OpenSea, Simetria, Supernova, Algorand and others will also become speakers and participants of the Blockchain-Tech Summit.

Experts will discuss such topics as:

Advertisement
  • Ethereum Level 2.0 Solutions;
  • Consensus algorithms for compatible platforms (Polkadot and Avalanche);
  • CBDC (Central Bank Digital Currency);
  • Zero Knowledge Proof – Privacy ;
  • The difference between smart contract languages and rust;
  • Smart contracts now and in the future: a master class on creating smart contracts;
  • The difference in structure between rust/solidity/haskell/ink;
  • The social impact of blockchain projects;
  • Regulation + DeFi;

To become a participant of the summit, go to the website and fill out the form. Geekle provides free access for summit participants from all over the world, so that every developer, regardless of their level of training, has access to unique knowledge from world experts in the field of development. A paid package is also provided for professional developers, which includes an expanded set of options. 

The Blockchain – Tech Summit is organized by Geekle, which specializes in holding huge technical summits with more than 10 thousand participants from different technical fields.

News Source

Advertisement
Continue Reading

Blockchain

The Future Of Credit: Blockchain And Reputation-Based Scores

Published

on

As the wealth gap is growing, individuals denied conventional credit are in a constant struggle. Moreover, conventional institutions are reluctant to provide loans to users without borrowing history.

If they do give approval, it usually comes with exorbitant interest rates. Cryptocurrency loans offer a more holistic approach to credit than personal FICO scores.

How Personal Scores Are Formed 

One of the most popular systems in the United States, FICO, considers five aspects of your financial past to rate your creditworthiness.

Advertisement

These are your history of payments, the total amount owed, age of history, new accounts, and credit mix. It all boils down to how likely you are to repay a loan.

The higher the score, the cheaper the loan as the interest rate goes down. 

This method has important limitations, which makes platforms that lend coin so popular. First, a person who has just opened their first credit account may have a sterling reputation.

Advertisement

They may be wealthy and have a history of fulfilling commitments. Secondly, data is updated with a delay. Finally, reports may contain errors, which is why the credit repair industry is so large.

Discover Reputation-based Credit

The paradigm is shifting. Cryptocurrency lending platforms understand that your previous history is not the only factor to assess creditworthiness.

Your values, community impact, reliability, and history of purchases should also matter.

Advertisement

Suppose you are a talented employee, punctual and hardworking. Your employer should be able to recommend you for a loan or credit card.

Similarly, someone who gives back to the community shows reliability and dedication. Such factors are ignored by conventional scoring systems, but they can play a role in cryptocurrency lending. 

Blockchain as Facilitator

Blockchain can support reputation-based scores in many ways. Here are the top two directions. 

Advertisement
  1. Snapshot of Your Reputation

It is possible to create a system focused on reputational cultivation. It will provide a snapshot of your background to the lender. Such environments will endorse creditworthiness and responsible behavior, from being punctual to helping strangers.

  1. New Scores

Different companies are experimenting with alternative metrics for loan applicants. For example, BTCJam tried adding new criteria like social media and recommendation letters.

Although this idea did not pan out, recommendations can help users without credit experience. 

Colendi has unveiled an algorithm that assigns a score based on data from the user’s smartphone, from social media activity to past purchases.

This also allows individuals to start with small loans and transactions and build trust gradually.

Advertisement

Exciting Prospects

Conventional institutions assess applicants based on a very limited number of criteria, and this has to change. Blockchain presents a great opportunity to add different reputational factors to the mix.

It can empower consumers to create unique identities, so they can have simplified access to lending online. This will allow everyone to get a loan and build credit.

Continue Reading

Blockchain

Blockdaemon Blockchain Infrastructure Firm Raises $155M from SoftBank Vision Fund 2 in Series B Funding Round

Published

on

Blockdaemon has received that the funding would be channeled into expansion and also increasing its current tech portfolio.

Blockdaemon has raised $155 million in a recently concluded Series B funding round that increased the blockchain infrastructure firm’s valuation to $1.3 billion. The company plans to use the generated funds to scale up in Singapore, Japan, the UK, and Germany. In addition, Blockdaemon is also looking to make key acquisitions to increase its tech stack. The funding valuation makes Blockdaemon the largest blockchain infrastructure firm in the world for node management and staking. 

SoftBank Vision Fund 2 spearheaded the Series B round that comprised several other banks and asset management companies. They include Matrix Capital Management, Sapphire Ventures, and Morgan Creek Digital. Other players were Boldstart Ventures, Goldman Sachs, Greenspring Associates, Kenetic, Kraken Ventures, and Borderless Capital. 

Advertisement

According to Blockdaemon CEO and founder Konstantin Richter, the latest injection of capital into his company is beneficial. In his own words:

“This latest large infusion of capital will ensure that we continue to revitalize existing financial infrastructure.” 

In addition, Richter also stated Blockdaemon’s commitment to “a future of decentralized financial infrastructure”. He said his firm looks to speed up the ease of integration between traditional banking and the crypto ecosystem. 

Oli Harris, North America head of digital assets at Goldman Sachs, also weighed in on his company’s involvement with Blockdaemon. In a statement Harris said:

Advertisement

”Goldman Sachs is very pleased to continue our relationship with and investment in Blockdaemon as they continue to innovate for the financial services industry. We believe Blockdaemon has a key role to play in the future of blockchain and crypto adoption.”

Blockdaemon raised $28 million in June in a Series A led by Greenspring Associates with participation from Goldman Sachs. Other investors in that round were Coinfund, CoinShares, BlockFi, Uphold, and Voyager Digital. 

The Latest Funding Round by Blockdaemon Is Indicative of a Thriving Blockchain Industry

The blockchain infrastructure space is now tremendously competitive. This is due to the increasingly mainstream acceptance of crypto, most notably by traditional financial institutions. 

Crypto exchange Coinbase bought blockchain infrastructure startup Bison Trails in January. In May, Alchemy closed on an $80 million Series B funding round valued at $505 million and co-led by Coatue Management. Alchemy powers most of DeFi and almost all the big NFT platforms. Also, another company, Figment, generated $50 million towards building its proof-of-stake infrastructure. Institutional investors Senator Investment Group and Liberty City Ventures led the Series B funding round with participation from other players. Some of them include Anchorage Digital, Galaxy Digital, and 10T Ventures. 

Advertisement

There is room for added growth and enhancement in the Blockchain space. The general consensus is that the technology of the future will be decentralized. The groundbreaking and key protocols in development today will play a vital role in shaping that future. Blockdaemon continually strives to remain one of those at the vanguard of such initiatives. The company currently sports a series of industry-leading products, including a single command-line API integration.

News Source

Advertisement
Continue Reading

Trending