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Meet Brock Pierce, the Presidential Candidate With Ties to Pedophiles Who Wants to End Human Trafficking

thedailybeast.com | Sep. 20, 2020.
The “Mighty Ducks” actor is running for president. He clears the air (sort of) to Tarpley Hitt about his ties to Jeffrey Epstein and more.
In the trailer for First Kid, the forgettable 1996 comedy about a Secret Service agent assigned to protect the president’s son, the title character, played by a teenage Brock Pierce, describes himself as “definitely the most powerful kid in the universe.” Now, the former child star is running to be the most powerful man in the world, as an Independent candidate for President of the United States.
Before First Kid, the Minnesota-born actor secured roles in a series of PG-rated comedies, playing a young Emilio Estevez in The Mighty Ducks, before graduating to smaller parts in movies like Problem Child 3: Junior in Love. When his screen time shrunk, Pierce retired from acting for a real executive role: co-founding the video production start-up Digital Entertainment Network (DEN) alongside businessman Marc Collins-Rector. At age 17, Pierce served as its vice president, taking in a base salary of $250,000.
DEN became “the poster child for dot-com excesses,” raising more than $60 million in seed investments and plotting a $75 million IPO. But it turned into a shorthand for something else when, in October of 1999, the three co-founders suddenly resigned. That month, a New Jersey man filed a lawsuit alleging Collins-Rector had molested him for three years beginning when he was 13 years old. The following summer, three teens filed a sexual-abuse lawsuit against Pierce, Collins-Rector, and their third co-founder, Chad Shackley. The plaintiffs later dropped their case against Pierce (he made a payment of $21,600 to one of their lawyers) and Shackley. But after a federal grand jury indicted Collins-Rector on criminal charges in 2000, the DEN founders left the country. When Interpol arrested them in 2002, they said they had confiscated “guns, machetes, and child pornography” from the trio’s beach villa in Spain.
While abroad, Pierce had pivoted to a new venture: Internet Gaming Entertainment, which sold virtual accessories in multiplayer online role-playing games to those desperate to pay, as one Wired reporter put it, “as much as $1,800 for an eight-piece suit of Skyshatter chain mail” rather than earn it in the games themselves. In 2005, a 25-year-old Pierce hired then-Goldman Sachs banker Steve Bannon—just before he would co-found Breitbart News. Two years later, after a World of Warcraft player sued the company for “diminishing” the fun of the game, Steve Bannon replaced Pierce as CEO.
Collins-Rector eventually pleaded guilty to eight charges of child enticement and registered as a sex offender. In the years that followed, Pierce waded into the gonzo economy of cryptocurrencies, where he overlapped more than once with Jeffrey Epstein, and counseled him on crypto. In that world, he founded Tether, a cryptocurrency that bills itself as a “stablecoin,” because its value is allegedly tied to the U.S. dollar, and the blockchain software company Block.one. Like his earlier businesses, Pierce’s crypto projects see-sawed between massive investments and curious deals. When Block.one announced a smart contract software called EOS.IO, the company raised $4 billion almost overnight, setting an all-time record before the product even launched. The Securities and Exchange Commission later fined the company $24 million for violating federal securities law. After John Oliver mocked the ordeal, calling Pierce a “sleepy, creepy cowboy,” Block.one fired him. Tether, meanwhile, is currently under investigation by the New York Attorney General for possible fraud.
On July 4, Pierce announced his candidacy for president. His campaign surrogates include a former Cambridge Analytica director and the singer Akon, who recently doubled down on developing an anonymously funded, $6 billion “Wakanda-like” metropolis in Senegal called Akon City. Pierce claims to be bipartisan, and from the 11 paragraphs on the “Policy” section of his website it can be hard to determine where he falls on the political spectrum. He supports legalizing marijuana and abolishing private prisons, but avoids the phrase “climate change.” He wants to end “human trafficking.” His proposal to end police brutality: body cams.
His political contributions tell a more one-sided story. Pierce’s sole Democratic contribution went to the short-lived congressional run of crypto candidate Brian Forde. The rest went to Republican campaigns like Marco Rubio, Rick Perry, John McCain, and the National Right to Life Political Action Committee. Last year alone, Pierce gave over $44,000 to the Republican National Committee and more than $55,000 to Trump’s re-election fund.
Pierce spoke to The Daily Beast from his tour bus and again over email. Those conversations have been combined and edited for clarity.
You’re announcing your presidential candidacy somewhat late, and historically, third-party candidates haven’t had the best luck with the executive office. If you don’t have a strong path to the White House, what do you want out of the race?
I announced on July 4, which I think is quite an auspicious date for an Independent candidate, hoping to bring independence to this country. There’s a lot of things that I can do. One is: I’m 39 years old. I turn 40 in November. So I’ve got time on my side. Whatever happens in this election cycle, I’m laying the groundwork for the future. The overall mission is to create a third major party—not another third party—a third major party in this country. I think that is what America needs most. George Washington in his closing address warned us about the threat of political parties. John Adams and the other founding fathers—their fear for our future was two political parties becoming dominant. And look at where we are. We were warned.
I believe, having studied systems, any time you have a system of two, what happens is those two things come together, like magnets. They come into collision, or they become polarized and become completely divided. I think we need to rise above partisan politics and find a path forward together. As Albert Einstein is quoted—I’m not sure the line came from him, but he’s quoted in many places—he said that the definition of insanity is making the same mistake or doing the same thing over and over and over again, expecting a different result. [Ed. note: Einstein never said this.] It feels like that’s what our election cycle is like. Half the country feels like they won, half the country feels like they lost, at least if they voted or participated.
Obviously, there’s another late-comer to the presidential race, and that’s Kanye West. He’s received a lot of flak for his candidacy, as he’s openly admitted to trying to siphon votes away from Joe Biden to ensure a Trump victory. Is that something you’re hoping to avoid or is that what you’re going for as well?
Oh no. This is a very serious campaign. Our campaign is very serious. You’ll notice I don’t say anything negative about either of the two major political candidates, because I think that’s one of the problems with our political system, instead of people getting on stage, talking about their visionary ideas, inspiring people, informing and educating, talking about problems, mentioning problems, talking about solutions, constructive criticism. That’s why I refuse to run a negative campaign. I am definitely not a spoiler. I’m into data, right? I’m a technologist. I’ve got digital DNA. So does most of our campaign team. We’ve got our finger on the pulse.
Most of my major Democratic contacts are really happy to see that we’re running in a red state like Wyoming. Kanye West’s home state is Wyoming. He’s not on the ballot in Wyoming I could say, in part, because he didn’t have Akon on his team. But I could also say that he probably didn’t want to be on the ballot in Wyoming because it’s a red state. He doesn’t want to take additional points in a state where he’s only running against Trump. But we’re on the ballot in Wyoming, and since we’re on the ballot in Wyoming I think it’s safe—more than safe, I think it’s evident—that we are not here to run as a spoiler for the benefit of Donald Trump.
In running for president, you’ve opened yourself up to be scrutinized from every angle going back to the beginning of your career. I wanted to ask you about your time at the Digital Entertainment Network. Can you tell me a little bit about how you started there? You became a vice president as a teenager. What were your qualifications and what was your job exactly?
Well, I was the co-founder. A lot of it was my idea. I had an idea that people would use the internet to watch videos, and we create content for the internet. The idea was basically YouTube and Hulu and Netflix. Anyone that was around in the ‘90s and has been around digital media since then, they all credit us as the creators of basically those ideas. I was just getting a message from the creator of The Vandals, the punk rock band, right before you called. He’s like, “Brock, looks like we’re going to get the Guinness Book of World Records for having created the first streaming television show.”
We did a lot of that stuff. We had 30 television shows. We had the top most prestigious institutions in the world as investors. The biggest names. High-net-worth investors like Terry Semel, who’s chairman and CEO of Warner Brothers, and became the CEO of Yahoo. I did all sorts of things. I helped sell $150,000 worth of advertising contracts to the CEOs of Pepsi and everything else. I was the face of the company, meeting all the major banks and everything else, selling the vision of what the future was.
You moved in with Marc Collins-Rector and Chad Shackley at a mansion in Encino. Was that the headquarters of the business?
All start-ups, they normally start out in your home. Because it’s just you. The company was first started out of Marc’s house, and it was probably there for the first two or three months, before the company got an office. That’s, like, how it is for all start-ups.
were later a co-defendant in the L.A. County case filed against Marc Collins-Rector for plying minors with alcohol and drugs, in order to facilitate sexual abuse. You were dropped from the case, but you settled with one of the men for $21,600. Can you explain that?
Okay, well, first of all, that’s not accurate. Two of the plaintiffs in that case asked me if I would be a plaintiff. Because I refused to be a part of the lawsuit, they chose to include me to discredit me, to make their case stronger. They also went and offered 50 percent of what they got to the house management—they went around and offered money to anyone to participate in this. They needed people to corroborate their story. Eventually, because I refused to participate in the lawsuit, they named me. Subsequently, all three of the plaintiffs apologized to me, in front of audiences, in front of many people, saying Brock never did anything. They dismissed their cases.
Remember, this is a civil thing. I’ve never been charged with a crime in my life. And the last plaintiff to have his case dismissed, he contacted his lawyer and said, “Dismiss this case against Brock. Brock never did anything. I just apologized. Dismiss his case.” And the lawyer said, “No. I won’t dismiss this case, I have all these out-of-pocket expenses, I refuse to file the paperwork unless you give me my out-of-pocket expenses.” And so the lawyer, I guess, had $21,000 in bills. So I paid his lawyer $21,000—not him, it was not a settlement. That was a payment to his lawyer for his out-of-pocket expenses. Out-of-pocket expenses so that he would file the paperwork to dismiss the case.
You’ve said the cases were unfounded, and the plaintiffs eventually apologized. But your boss, Marc Collins-Rector later pleaded guilty to eight charges of child enticement and registered as a sex offender. Were you aware of his behavior? How do you square the fact that later allegations proved to be true, but these ones were not?
Well, remember: I was 16 and 17 years old at the time? So, no. I don’t think Marc is the man they made him out to be. But Marc is not a person I would associate with today, and someone I haven’t associated with in a very long time. I was 16 and 17. I chose the wrong business partner. You live and you learn.
You’ve pointed out that you were underage when most of these allegations were said to take place. Did you ever feel like you were coerced or in over your head while working at DEN?
I mean, I was working 18 hours a day, doing things I’d never done before. It was business school. But I definitely learned a lot in building that company. We raised $88 million. We filed our [form] S-1 to go public. We were the hottest start-up in Los Angeles.
In 2000, you left the country with Marc Collins-Rector. Why did you leave? How did you spend those two years abroad?
I moved to Spain in 1999 for personal reasons. I spent those two years in Europe working on developing my businesses.
Interpol found you in 2002. The house where you were staying reportedly contained guns, machetes, and child pornography. Whose guns and child porn were those? Were you aware they were in the house, and how did those get there?
My lawyers have addressed this in 32 pages of documentation showing a complete absence of wrongdoing. Please refer to my webpage for more information.
[Ed. Note: The webpage does not mention guns, machetes, or child pornography. It does state:“It is true that when the local police arrested Collins-Rector in Spain in 2002 on an international warrant, Mr. Pierce was also taken into custody, but so was everyone at Collins-Rector’s house in Spain; and it is equally clear that Brock was promptly released, and no charges of any kind were ever filed against Brock concerning this matter.”]
What do you make of the allegations against Bryan Singer? [Ed. Note: Bryan Singer, a close friend of Collins-Rector, invested at least $50,000 in DEN. In an Atlantic article outlining Singer’s history of alleged sexual assault and statutory rape, one source claimed that at age 15, Collins-Rector abused him and introduced him to Singer, who then assaulted him in the DEN headquarters.]
I am aware of them and I support of all victims of sexual assault. I will let America’s justice system decide on Singer’s outcome.
In 2011, you spoke at the Mindshift conference supported by Jeffrey Epstein. At that point, he had already been convicted of soliciting prostitution from a minor. Why did you agree to speak?
I had never heard of Jeffrey Epstein. His name was not on the website. I was asked to speak at a conference alongside Nobel Prize winners. It was not a cryptocurrency conference, it was filled with Nobel Prize winners. I was asked to speak alongside Nobel Prize winners on the future of money. I speak at conferences historically, two to three times a week. I was like, “Nobel Prize winners? Sounds great. I’ll happily talk about the future of money with them.” I had no idea who Jeffrey Epstein was. His name was not listed anywhere on the website. Had I known what I know now? I clearly would have never spoken there. But I spoke at a conference that he cosponsored.
What’s your connection to the Clinton Global Initiative? Did you hear about it through Jeffrey Epstein?
I joined the Clinton Global Initiative as a philanthropist in 2006 and was a member for one year. My involvement with the Initiative had no connection to Jeffrey Epstein whatsoever.
You’ve launched your campaign in Minnesota, where George Floyd was killed by a police officer. How do you feel about the civil uprising against police brutality?
I’m from Minnesota. Born and raised. We just had a press conference there, announcing that we’re on the ballot. Former U.S. Senator Dean Barkley was there. So that tells you, when former U.S. Senators are endorsing the candidate, right?
[Ed. note: Barkley was never elected to the United States Senate. In November of 2002, he was appointed by then Minnesota Governor Jesse Venture to fill the seat after Sen. Paul Wellstone died in a plane crash. Barkley’s term ended on Jan. 3, 2003—two months later.]
Yes, George Floyd was murdered in Minneapolis. My vice-presidential running mate Karla Ballard and I, on our last trip to Minnesota together, went to visit the George Floyd Memorial. I believe in law and order. I believe that law and order is foundational to any functioning society. But there is no doubt in my mind that we need reform. These types of events—this is not an isolated incident. This has happened many times before. It’s time for change. We have a lot of detail around policy on this issue that we will be publishing next week. Not just high-level what we think, not just a summary, but detailed policy.
You said that you support “law and order.” What does that mean?
“Law and order” means creating a fair and just legal system where our number one priority is protecting the inalienable rights of “Life, Liberty and the pursuit of Happiness” for all people. This means reforming how our police intervene in emergency situations, abolishing private prisons that incentivize mass incarceration, and creating new educational and economic opportunities for our most vulnerable communities. I am dedicated to preventing crime by eliminating the socioeconomic conditions that encourage it.
I support accountability and transparency in government and law enforcement. Some of the key policies I support are requiring body-cams on all law enforcement officers who engage with the public, curtailing the 1033 program that provides local law enforcement agencies with access to military equipment, and abolishing private prisons. Rather than simply defund the police, my administration will take a holistic approach to heal and unite America by ending mass incarceration, police brutality, and racial injustice.
Did you attend any Black Lives Matter protests?
I support all movements aimed at ending racial injustice and inequality. I​ have not attended any Black Lives Matter protests.​ My running-mate, Karla Ballard, attended the March on Washington in support of racial justice and equality.
Your platform doesn’t mention the words “climate change.” Is there a reason for that?
I’m not sure what you mean. Our policy platform specifically references human-caused climate change and we have a plan to restabilize the climate, address environmental degradation, and ensure environmental sustainability.
[Ed. Note: As of writing the Pierce campaign’s policy platform does not specifically reference human-caused climate change.]
You’ve recently brought on Akon as a campaign surrogate. How did that happen? Tell me about that.
Akon and I have been friends for quite some time. I was one of the guys that taught him about Bitcoin. I helped make some videogames for him, I think in 2012. We were talking about Bitcoin, teaching him the ropes, back in 2013. And in 2014, we were both speaking at the Milken Global Conference, and I encouraged him to talk about how Bitcoin, Africa, changed the world. He became the biggest celebrity in the world, talking about Bitcoin at the time. I’m an adviser to his Akoin project, very interested in the work that he’s doing to build a city in Africa.
I think we need a government that’s of, for, and by the people. Akon has huge political aspirations. He obviously was a hugely successful artist. But he also discovered artists like Lady Gaga. So not only is he, himself, a great artist, but he’s also a great identifier and builder of other artists. And he’s been a great businessman, philanthropist. He’s pushing the limits of what can be done. We’re like-minded individuals in that regard. I think he’ll be running for political office one day, because he sees what I see: that we need real change, and we need a government that is of, for, and by the people.
You mentioned that you’re an adviser on Akoin. Do you have any financial investments in Akoin or Akon City?
I don’t believe so. I’d have to check. I have so much stuff. But I don’t believe that I have any economic interests in his stuff. I’d have to verify that. We’ll get back to you. I don’t believe that I have any economic interests. My interest is in helping him. He’s a visionary with big ideas that wants to help things in the world. If I can be of assistance in helping him make the world a better place, I’m all for it. I’m not motivated by money. I’m not running for office because I’m motivated by power. I’m running for office because I’m deeply, deeply concerned about our collective future.
You’ve said you’re running on a pro-technology platform. One week into your campaign last month, a New York appeals court approved the state Attorney General’s attempt to investigate the stablecoin Tether for potentially fraudulent activity. Do you think this will impact your ability to sell people on your tech entrepreneurship?
No, I think my role in Tether is as awesome as it gets. It was my idea. I put it together. But I’ve had no involvement in the company since 2015. I gave all of my equity to the other shareholders. I’ve had zero involvement in the company for almost six years. It was just my idea. I put the initial team together. But I think Tether is one of the most important innovations in the world, certainly. The idea is, I digitized the U.S. dollar. I used technology to digitize currency—existing currency. The U.S. dollar in particular. It’s doing $10 trillion a year. Ten trillion dollars a year of transactional volume. It’s probably the most important innovation in currency since the advent of fiat money. The people that took on the business and ran the business in years to come, they’ve done things I’m not proud of. I’m not sure they’ve done anything criminal. But they certainly did things differently than I would do. But it’s like, you have kids, they turn 18, they go out into the world, and sometimes you’re proud of the things they do, and sometimes you shake your head and go, “Ugh, why did you do that?” I have zero concerns as it relates to me personally. I wish they made better decisions.
What do you think the investigation will find?
I have no idea. The problem that was raised is that there was a $5 million loan between two entities and whether or not they had the right to do that, did they disclose it correctly. There’s been no accusations of, like, embezzlement or anything that bad.
[Ed. Note: The Attorney General’s press release on the investigation reads: “Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million dollars of co-mingled client and corporate funds.”]
But there’s been some disclosure things, that is the issue. No one is making any outrageous claims that these are people that have done a bunch of bad—well, on the internet, the media has said that the people behind the business may have been manipulating the price of Bitcoin, but I don’t think that has anything to do with the New York investigation. Again, I’m so not involved, and so not at risk, that I’m not even up to speed on the details.
[Ed note: A representative of the New York State Attorney General told Forbes that he “cannot confirm or deny that the investigation” includes Pierce.]
We’ve recently witnessed the rise of QAnon, the conspiracy theory that Hollywood is an evil cabal of Satanic pedophiles and Trump is the person waging war on them. You mentioned human trafficking, which has become a cause for them. What are your thoughts on that?
I’ve watched some of the content. I think it’s an interesting phenomenon. I’m an internet person, so Anonymous is obviously an organization that has been doing interesting stuff. It’s interesting. I don’t have a big—conspiracy theory stuff is—I guess I have a question for you: What do you think of all of it, since you’re the expert?
You know, I think it’s not true, but I’m not running for president. I do wonder what this politician [Georgia congressional candidate Marjorie Taylor Greene], who’s just won her primary, is going to do on day one, once she finds out there’s no satanic cabal room.
Wait, someone was running for office and won on a QAnon platform, saying that Hollywood did—say what? You’re the expert here.
She won a primary. But I want to push on if we only have a few minutes. In 2006, your gaming company IGE brought on Steve Bannon as an investor. Goldman later bought out most of your stock. Bannon eventually replaced you as CEO of Affinity. You’ve described him as your “right-hand man for, like, seven years.” How well did you know Bannon during that time?
Yes, so this is in my mid-twenties. He wasn’t an investor. He worked for me. He was my banker. He worked for me for three years as my yield guide. And then he was my CEO running the company for another four years. So I haven’t worked with Steve for a decade or so. We worked in videogame stuff and banking. He was at Goldman Sachs. He was not in the political area at the time. But he was a pretty successful banker. He set up Goldman Sachs Los Angeles. So for me, I’d say he did a pretty good job.
During your business relationship, Steve Bannon founded Breitbart News, which has pretty consistently published racist material. How do you feel about Breitbart?
I had no involvement with Breitbart News. As for how I feel about such material, I’m not pleased by any form of hate-mongering. I strongly support the equality of all Americans.
Did you have qualms about Bannon’s role in the 2016 election?
Bannon’s role in the Trump campaign got me to pay closer attention to what he was doing but that’s about it. Whenever you find out that one of your former employees has taken on a role like that, you pay attention.
Bannon served on the board of Cambridge Analytica. A staffer on your campaign, Brittany Kaiser, also served as a business director for them. What are your thoughts on their use of illicitly-obtained Facebook data for campaign promotional material?
Yes, so this will be the last question I can answer because I’ve got to be off for this 5:00 pm. But Brittany Kaiser is a friend of mine. She was the whistleblower of Cambridge Analytica. She came to me and said, “What do I do?” And I said, “Tell the truth. The truth will set you free.”
[Ed. Note: Investigations in Cambridge Analytica took place as early as Nov. 2017, when a U.K. reporter at Channel 4 News recorded their CEO boasting about using “beautiful Ukranian girls” and offers of bribes to discredit political officials. The first whistleblower was Christopher Wylie, who disclosed a cache of documents to The Guardian, published on Mar. 17, 2018. Kaiser’s confession ran five days later, after the scandal made national news. Her association with Cambridge Analytica is not mentioned anywhere on Pierce’s campaign website.]
So I’m glad that people—I’m a supporter of whistleblowers, people that see injustice in the world and something not right happening, and who put themselves in harm’s way to stand up for what they believe in. So I stand up for Brittany Kaiser.
Who do you think [anonymous inventor of Bitcoin] Satoshi Nakamoto is?
We all are Satoshi Nakamoto.
You got married at Burning Man. Have you been attending virtual Burning Man?
I’m running a presidential campaign. So, while I was there in spirit, unfortunately my schedule did not permit me to attend.
OP note: please refer to the original article for reference links within text (as I've not added them here!)
submitted by Leather_Term to Epstein [link] [comments]

Suggestions for a better Bomb community

Hello, Bombinos.

First of all, huge thanks to all the team, mods and people working on the project. I'm writing some suggestions aiming to organize and grow our community and increase awareness about the project. It's divided in three specific topics related to strategy, communities and marketing. But first, I'll suggest some aesthetic changes in this subreddit to make it look more friendly.
A) The font color in the topic on the front page is too dark in my desktop screen. The background is black and the font is dark gray, making it almost unreadable. It has to be changed to a lighter tone.
B) The text on the sidebar is incomplete. I made some alterations in the new text below.
"Bomb, the original and first deflationary currency experiment, was born after an airdrop in the end of 2018 aiming to answer one simple question: Can a deflationary cryptocurrency work as a store of value? The Bomb currency works by destroying 1% from every transaction recorded in the Ethereum blockchain. Only 1,000,000 tokens were minted. There will never be newly minted tokens."
C) The sidebar should include a price ticker similar to the one used in the Telegram group and include our etherscan address.
D) The sidebar should also include links to the Telegram and other communities.

1- Strategy:

A) First deflationary currency and importance of the Bomb Token against governments printing money.
The economist Friedrich Hayek from the Austrian school, in his acceptance speech titled "The Pretense of Knowledge" at the Swedish Nobel Academy, emphasized the importance of letting the economy free of government interference, specifically in the case of a continuous injection of additional amounts of money at points of the economic system where it creates a temporary demand, which generates a future imbalance after the artificial demand ceases. We are seeing this today with the interference of governments on the economies after the coronavirus. Trillions of dollars are being given to companies that don't have any idea how the consumers will react when the economies restart. The irrationality of the human behavior must be considered in this case, because there's no scientific theory to guarantee how the people will react after the restrictions are over.
With all this new money on the market, we are risking a long term inflation that devalues national currencies like we have never seen before. That's where a deflationary currency becomes important as a hedge against this anomaly created in the market and this enormous sum of new money.

B) Increasing the network effect to protect the asset
To have a chance against its competitors, Bomb must protect its network against copycats and bad actors. The best way to do this is to increase the number of holders and, subsequently, wallets, to squash the power of any holder to manipulate the price and even crash it. We have to protect our network the same way Bitcoin did, increasing the number of financially interested people to a point where it's not productive to manipulate the price.
Bomb has another quality that makes it prone to manipulation and volatility. One person (or entity) holding a lot of tokens can game the system using an exchange that runs off-chain transactions to crash the price. We are seeing this today. The transactions are happening but there's no burn and the price keeps going down. The only way to protect against this kind of bad actor is to increase the network effect and spread the tokens to a lot more holders, people interested in defending the currency.

C) Increase the total holders and wallets to improve liquidity in exchanges and awareness
Increasing the total number of holders would reduce the capacity of bad actors to wash trade. More people interested means more transactions, more transactions generate smaller spreads. Smaller spreads make it harder for bad actors to manipulate the price through wash trading.

D) Evaluate new listings or removing old ones
Yes, we need at least on more good exchange like Kraken. We should first wait for more holders before going after new listings. And we should look forward removing Bomb from bad exchanges.

2- Communities:

A) Focus decisions on Reddit and Telegram (only three communities: news, price discussion and Bombassadors) and sharing everything published on Facebook and Twitter.
Voting and decisions should be centralized in only one place. We can share the discussions everywhere else, but the voting and decisions must be centralized to one platform.

B) Elect mods to these communities to increase decentralization
I don't know how the Bombassadors program work, but we need to keep the current mods and choose new ones to run things more smoothly. Reddit and Telegram take a lot of time and we absolutely need more people.

3- Marketing:

A) Use the small war chest wisely because Bomb is deflationary and becomes more and more scarce by the minute. We have to extended the war chest as long as we can to reach a more valuable network.
Any marketing campaign must consider the increase in the network effect. We should focus on campaigns that attract outside interest. Example: each 15 days somebody could be rewarded with 50 bombs for an article shared on Reddit, Twiter, Facebook and 4chan. The prize must be voted and awarded to the best article that was shared, not only published.
Articles or content that eventually reach a lot of engagement could be awarded outside of this prize with 100 bombs, discretionarily, by the mods.

B) Use the funds only in campaigns that bring new people to the project instead of distributing it in the existing community to produce meaningless burns.
Again. Burning will not increase the network value. After meaningless burns we will have the same number of interested people, but less tokens on the market. This way Bomb will never reach the store of value status.

C) Reward people that generate quality content (like Pedro's 3D printed bombinos) and people that share this quality content and generate a lot of awareness.

D) All campaigns must answer positively the question: Does this increase the network effect and represents quality content?

E) Kill proposals that value meaningless token burns to create pumps.

F) Don't forget to have fun! Good memes could be rewarded every 15 days, after voting, with 20 bombs.

Suggestions are welcome. Let's find some common ground and move forward. And thanks for reading!
submitted by KazaCthulhu to BombToken [link] [comments]

Things I have to disagree with Yang on as a conservative, and why it’s important we have our disagreements

Before I go on, here’s a little background on me:
I was a former Trump supporter and am currently a registered Republican. In 2016, I supported Rand Paul, then Ted Cruz up until the primary (I am currently converting to Catholicism so I value Cruz’s Catholic background), and then Donald Trump in the general (but not much, I was vacillating between him and Johnson). I continue to be a pretty strong conservative. My economic views are left leaning, and my social views are right leaning.
I came across Yang in February 2018 when I saw him mentioned offhandedly somewhere on the Internet, and I went to his website to take a look (it hasn’t changed much at all, except for all of the new pages for policies, volunteering and events). I was instantly enamored by his forward thinking policy plans, perceptiveness in the threat of automation, and the intelligence and sensibility behind his character. Honestly, I thought he had no chance- after all, he was nothing but a website at this point in time- but I kept interest and told some friends and family about him. As I began to see his interviews and as his campaign fleshed out, I joined the Yang Gang in earnest.
As a result, a lot of my economic conservatism softened out as I understood the impact of UBI, access to healthcare, and the role of economic support in shaping our communities and dealing with our social issues.
However, I am still a conservative at heart, and despite how much I love the Yang campaign and have worked to spread the message far and wide, I disagree with him on various fronts.
  1. I disagree heavily with his stance on abortion. In my religious and secular views, I do not view abortion as a right. Although I tolerate contraceptives and believe greatly in sexual health and awareness, abortion- especially in later weeks of pregnancy- crosses the line for me. Roe v Wade should be overturned and not codified into law. In its place, I do support UBI, access to healthcare, improvements in sex ed and access to contraceptives- all of which would reduce abortion. I also support paid maternity leave, and improvements to our foster care system so that a pregnancy doesn’t have to be terminated.
  2. I also disagree heavily on his stance on 16 year olds gaining the right to vote. I’m a senior in high school, and I can’t even trust my fellow 18 year olds to make those decisions. Civics is usually only taught by your senior year of high school, so 16 year olds would be voting without even having a civics education. I think this plan is absolutely ludicrous, and we should revert the voting age to 21.
  3. I’m also in heavy disagreement with Yang’s support of court stuffing. The judiciary is, arguably, the most potent of the three branches of government and should not be messed with. It is supposed to be an impartial body of the nations best legal minds who interpret our laws within the context of the Constitution. Court stuffing essentially eliminates this precedent entirely. I’m also in disagreement with term limits for the Supreme Court. As our Justices gain experience on the bench, they become not only more accountable and visible to the public (eg Ginsburg, Thomas, Scalia) but also more competent at their work.
  4. Yang’s approach to gun control is somewhat acceptable, however my greatest issue is with licensing. In general, the government should not have a say in regards to what we can have to defend ourselves. I support the idea that some people shouldn’t have guns, but ONLY at the discretion of a court of law. I also think we should emphasize gun training much more- subsidize and emphasize it- so that lawful and morally just citizens have the ability to aptly defend themselves and others whilst not putting others at risk with their weapons.
  5. It doesn’t appear Yang has a strong stance on energy independence. I honestly think Yang should emphasize this more in the context of our foreign policy and economic security. Building off of the nuclear idea, as well as finding new ways to make fossil fuels cleaner and more efficient, should be a part of that (carbon capture, “clean coal”, finding new fuels, natural gas, making fracking/shale mining safer).
  6. As a securities trader in my spare time, a financial transaction tax would be BRUTAL. 0.1% on all trades and transactions is a LOT- especially given most trade fees are less than that. Over time, this adds up to a lot, and could kill investment in slower-moving markets where 0.1% could be the day’s gains. In the context of the trillions that flow through the derivatives and options markets each year, this becomes a massive burden for our financial industry. A reduction in the tax could work if revenue for the UBI is still needed, but we should explore other ways to raise money in less sensitive fields.
  7. The regulation of social media is going to be an impossible- and questionable- task. We should be striking at the heart of where hate and violence come up: economic or social insecurity, a lack of community or belonging, or negative cultural influences. I’ve been there before, and while I’ve been fortunate enough to lift myself out of that dark stage in my life (thanks to the Yang Gang!), many others still have that sense of insecurity in our society or in their personal lives. The internet is a free place, for better or worse, and we’re only ever going to get better results by attacking the core problem.
  8. DC and Puerto Rico are unfit to become states. As for DC, they compensate for their lack of representation by the amount of political influence there. DC’s representative is HUGELY influential in Congress, and DC is also very wealthy on top of that. As for Puerto Rico, it would be way too hard to integrate them as a state and it’s probably better for them to be sovereign.
  9. I support Voter ID as a means to prevent voter fraud SO LONG AS the process to get one is easy and very accessible for anybody.
  10. The Electoral College as it stands must be preserved and understood as one of the primary counters against the tyranny of the majority. By giving states the vote, we ensure that- especially as urbanization takes hold- every part of America gets to be heard. That means that rural states won’t be overshadowed by the urban ones, and the small man still has a seat at the table. This is at the core idea of what we are- the United STATES- and as one of the most geographically and culturally diverse countries on Earth, it would be egregious to simplify our decisions down to a popular vote. In every case, the people who live in states like Wyoming and South Dakota get snuffed out and their values and issues go unheard, as if they were already under the cultural, economic, and social influence of the bigger states. While we may sometimes get a President who didn’t earn the popular vote, that makes it ever so important that our candidates pay attention to ALL of America- not just California, New York, Pennsylvania, and Florida.
  11. I own Bitcoin and I’ve owned it since 2013 (I guess I’m lucky, right?). Cryptocurrency ought to remain free and anonymous and secure, and I don’t believe in regulating it extensively. The more we regulate it, the more it loses its purpose and vision, not only as a commodity, but also as a means of exchange.
And that’s about it, out of Yang’s 105 or so policies, those are really the only ones I have a gripe about. I guess it goes to show how far reaching Yang’s message is. I’m not irreverent of Yang- I’m a long-standing and enthusiastic member of the Yang Gang- but I still have my disagreements!
Even still, I think it’s important that we have disagreements with our candidates. Being able to disagree with our candidates and leadership on issues demonstrates that we still have our own values and convictions as individuals that allow us to make our own unique contribution to politics. Having these disagreements, but still being able to respect a candidate or even extensively support one, is essential to a healthy democracy. Without them, we lose the value behind it.
I’d like to hear what disagreements you may have with Yang, so we can expand the discourse behind his campaign and empower it even more, to show the diverse set of ideas and values behind the Yang campaign.
submitted by stellarpasta to YangForPresidentHQ [link] [comments]

Blockchain in Insurance: Use Cases and Implementations

Blockchain in Insurance: Use Cases and Implementations
This article was first posted on Medium: https://medium.com/swlh/blockchain-in-insurance-use-cases-and-implementations-a42a00ebcd91
Almost all major insurers are planning to integrate blockchain by 2021, according to PwC. At first glance, such a high level of commitment to new tech may seem surprising in an old and traditional industry such as insurance. However, enterprise blockchain adoption is poised to help insurers significantly cut costs, become more responsive to customers, and write more business.
Two recurring themes throughout this post are that:
  1. Blockchain can lower costs for insurers and lower insurance premiums for customers.
  2. Blockchain can help insurers understand & price risks better by allowing customer, risk and policy information to be shared more quickly and securely across parties the insurance ecosystem. This will increase revenue and growth prospects by allowing insurers to price insurance products more accurately.
Costs are becoming an issue for insurers. Life insurers in Asia and the US have seen cost ratios climb above 30% and 20% respectively over the past few years. This figure should ideally be below 20%. Part of this is due to increased compliance costs such as Know Your Customer (KYC) and Anti-Money Laundering (AML) laws. A bigger reason is that selling and servicing insurance policies is still a complex and labor intensive process.
Insurance Growth Rates (CAGR) 2012–17. Source: EY
A recent EY insurance market report showed low growth rates for Life insurance and Non-Life insurance outside Asia Pacific. Digging deeper, Life insurance premiums in the US declined by 0.4% from 2012–17.
Insurers find themselves needing to reduce operating costs and write business more effectively. While blockchain is not a magic elixir, proper adoption will help address these needs.

What is Blockchain?

In their book “Blockchain Revolution,” authors Don and Alex Tapscott describe blockchain as “an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Organizations need secure ways to record transactions and manage information flows, making blockchain’s appeal easy to see. Blockchains ensures that:
  • All participants have a copy of the digital ledger and that each copy is updated in real-time when transactions occur;
  • There is no centralized server, making hacking next to impossible;
  • A recorded transaction theoretically cannot be reversed, which makes the ledger an immutable source of truth no matter how many participants hold copies;
  • Transaction data, records, and participant identities can be authenticated while remaining private.
Enterprise blockchains used by companies are different from public blockchains such as Bitcoin and Ethereum. Public blockchains are too clunky and slow for enterprise purposes. Enterprises require scale and speed — the ability to process hundreds of thousands of transactions very quickly. Public blockchains suffer from very low transaction speeds. Their verification process is cumbersome because participants are unknown and untrusted. Private enterprise blockchains don’t suffer from this limitation since all participants are known and trusted.
Enterprise blockchains have the following characteristics:
  • Participation requires invitation: all participants in the blockchain network are trusted
  • Data is private and secure: you don’t have access to transactions that you are not a party to, even though you’re on the same blockchain network
  • Enterprise blockchains are fast and light: the network can handle thousands of transactions per second and numerous participants working in tandem
  • ‘Smart contracts’ automate processes: transaction rules and process flows can be programmed to execute automatically, allowing payments and transfers to execute without human intervention, for example
The insurance industry will benefit from blockchain because most underwriting and claims activity requires cooperation among multiple parties. Some of these parties are from outside the firm, making data security important. Reconciling data from multiple sources during claims investigation, for example, is time and resource intensive and prone to manual error. Putting this data on a blockchain would streamline operations.

Blockchain Use Cases in Insurance

Industries have always adopted technology that has made it easier, faster and cheaper to conduct business. Blockchain tech promises to deliver on all three fronts, especially in the insurance industry, which is seen as slow and complex.
Let’s face it, insurance customers don’t enjoy interacting with insurance companies. Customers often deal with time-consuming paper forms when applying for a policy or submitting a claim. They may have to speak with people at insurance companies and hospitals, for example, to get medical insurance claims reimbursed.
On the flip side, insurance companies have to deal with the high costs of managing and servicing policies. Many of these costs are administrative — claims administration, verification and reconciliation of information, and paperwork. Insurance also requires coordination among many parties — consumers, brokers, insurers and reinsurers. This introduces overhead costs that translate to higher premiums paid by customers.
Blockchain can help make selling and servicing insurance better, faster and cheaper by improving fraud prevention, claims management, health insurance, and reinsurance. The end result could be lower prices and better experiences for customers.

Fraud Prevention

According to the FBI, non-health insurance fraud in the US is estimated to be over $40 billion per year, which can cost families between $400–700 per year in extra premiums.
Common types of insurance fraud can be eliminated by moving insurance claims onto a blockchain-based ledger that is shared among insurance companies and cannot be modified. It can prevent criminals from collecting money from different insurers for the same claim, for example.
Blockchain will make coordination easier among insurers. If all insurers access a shared blockchain ledger, they would know if a claim has already been paid. Since all insurers use the same historical claims information, it would also be easier to identify suspicious behavior.
Insurers currently try to detect fraud by using publicly available data as well as data acquired from private companies. The problem is that these data sets are incomplete due to legal constraints around sharing personally identifiable information of individuals. Blockchain, by cryptographically securing data, would allow claims information to be shared across insurers without divulging personally identifiable information.

Claims Management

Putting insurance policies on a blockchain as smart contracts can radically improve the efficiency of Property & Casualty (P&C) insurance, saving insurers more than $200B a year in operating costs according to BCG.
Let’s use car insurance to illustrate this. If you get into a car accident and it was the other driver’s fault, you must submit a claim to your insurance company to recover your loss. Your insurance company investigates your claim and tries to recover money from the other driver’s insurance company. The other insurance company has its own claims processes, which leads to duplicated work, delays, and possible human error. The end result is that you get paid much later than you’d like, and insurers spend time and money on unprofitable activities.
Putting insurance policies and claims data on a blockchain that different insurers, reinsurers, brokers, and other parties can access reduces duplicate manual work by different parties.
Insurance policies as smart contracts on a blockchain automatically execute programmed claims processing actions, automating information transfers between insurers and other parties, and releasing payments to policyholders. Additional info such as claims forms and supporting evidence supplied by policyholders can later be added to the blockchain so that all parties have the same information, making disputes unlikely.

Health Insurance

Blockchain enables fast, accurate, and secure sharing of medical data among healthcare providers and insurers. This will translate into faster health insurance claims processing and lower health insurance costs for customers.
Privacy laws around sharing patient data among hospitals and health insurance providers makes it time-consuming and expensive to process health insurance claims. Lack of data can even lead to insurance claim denials.
Patients deal with numerous doctors, hospitals and insurers over time and across borders. A patient’s medical history exists in fragments across healthcare providers and insurers. Worse, the way in which insurers and healthcare providers cooperate, share patient data, and process claims involves complex manual work & reconciliation. Even the technical infrastructure for medical records is outdated.
Putting encrypted patient records on a blockchain allows healthcare providers and insurers to access a patient’s medical data without sacrificing patient confidentiality. An industry-wide synchronized database of patient data can save the industry billions annually. Patient privacy is ensured because the blockchain stores cryptographic signatures for each medical record, which verifies the authenticity of the record without having to actually store any sensitive info on the blockchain. Changes to a patient’s medical records are also stored on the blockchain, which creates an audit trail.

Reinsurance

Data sharing among insurers and reinsurance companies is complex, time consuming, and requires inefficient manual work. Blockchain can streamline information flows between insurers and reinsurers.
Reinsurers provide insurance to insurance companies. That way, insurance companies won’t get wiped out when many claims occur at once, such as during a hurricane or earthquake.
The problem is that reinsurance processes are lengthy, inefficient, manual and are based on one-off contracts. Insurance companies generally engage multiple reinsurers for the same risk, which means that data has to be shared among many companies to settle claims.
When reinsurers and insurers share a blockchain ledger, data related to policies, premiums and losses can exist on insurers’ and reinsurers’ systems simultaneously. This takes away the need for reconciliation, which saves everyone time and money. Reinsurers can also automate claims processing and settlement.
PricewaterhouseCoopers estimates that blockchain can save the reinsurance industry up to $10 billion, which can then lead to lower insurance premiums for customers.

Blockchain Implementation in Insurance

Saving the best for last, here are just some examples of how the insurance industry is using blockchain. Keep in mind that at this point, there are more prototypes and POCs than full-scale implementations.

R3

R3 is an enterprise blockchain company. It maintains an ecosystem of over 300 firms across industries that build blockchain software apps on top of its Corda platform. These apps can be used across industries from insurance to banking to healthcare. R3 maintains 2 versions of Corda; an open source platform and an enterprise-specific version called Corda Enterprise. Both versions of Corda are compatible with each other.
Insurance-specific applications on Corda are designed to help insurers automate back office activities, streamline operational flows, and generally spend less time on things like claims admin and data processing. There are also apps being development to speed up underwriting and enable faster data sharing among insurers and reinsurers.
Basically, Corda wants to host a common set of insurance apps that the entire industry can use to cut costs and boost revenue. Corda currently boasts over 15 insurance-specific apps, with a few of these deployed into production such as:
  • Blocksure OS: solves problems related to legacy systems, slow manual processes and high rates of error by automating policy admin and claims activities. Policyholders can access all policy and claims info in one app.
  • MIDAS: is a motor insurance authentication platform designed to serve 80 motor insurance companies in Hong Kong. It provides real-time authentication of motor insurance policies, verification, and audit trails. This can help with fraud detection and reduce time required for certain verification activities when it comes to policy and claims management.

B3i

B3i was a blockchain consortium, now an independent software company, supported by leading insurers and reinsurers including Swiss Re, AXA, Zurich, Munich Re, and Allianz. They develop blockchain-based applications for insurers and reinsurers and aim to create industry-wide standards. B3i aims to use blockchain tech to streamline back office processes and claims management — basically lower costs and do things faster. In 2018, B3i switched from IBM’s Hyperledger Fabric to R3’s Corda platform.
In July 2019, they launched a Catastrophe Excess of Loss product on Corda. The product is designed for brokers, insurers and reinsurers to negotiate and place risks more efficiently by reducing manual activities related to placing, renewing and managing treaties.

AXA

In 2017, AXA launched Fizzy, a blockchain platform for flight delay insurance. Customers purchase flight delay insurance, which is recorded in a smart contract. The platform is connected to global air traffic databases and receives flight statuses. If a customer’s flight is delayed for more than two hours, the smart contract automatically triggers payment to the customer.
Customers don’t have to fill out claims forms or speak to service reps. The claim is deposited directly to their bank account. Customer satisfaction: maximized.
AXA does not have to spend time processing claims, verifying flight data, or enduring paperwork for payment authorizations. They save on time & cost and can deploy these resources to more profitable activities.
Update: Fizzy has since been discontinued after 2 years, possibly due to lack of appetite from the travel/airline industry. Regardless, Fizzy was a pioneer of sorts and has laid the groundwork for future blockchain insurance platforms.

Blue Cross

Hong Kong insurer Blue Cross is using blockchain since April 2019 to speed up medical insurance claims processing and prevent fraud.
Blue Cross’ blockchain platform validates claims data in real-time, which greatly reduces fraud potential from duplicate claims filing, for example. Claims are also processed faster for their 200,000+ customers. The platform also removes the need to reconcile claims data across parties such as insurers and medical service providers. Medical practitioners such as doctors and chiropractors who don’t employ many admin support staff could save time and money by partnering with Blue Cross.
Blue Cross’ blockchain platform is built on Hyperledger. Blue Cross is owned by Bank of East Asia.

Insurwave

Insurwave is a blockchain-based marine hull insurance platform launched in 2018. The platform was a collaboration among Ernst & Young, Guardtime, Maersk, Microsoft, and ACORD. It was built on R3’s Corda platform.
Insurwave provides real-time information on ships’ location, condition, and safety factors that both insurers and customers can access. If ships enter high-risk areas, Insurwave automatically factors this into underwriting and pricing calculations.
Premium calculations for this type of insurance are very complex. Having an immutable audit trail for ship-specific information substantially eases this calculation, enables accurate pricing, and speeds up underwriting. Insurers are also able to better account for ship-specific risks.

The Future of Blockchain in Insurance

These are still early days. Most of the work around blockchain in insurance is in the Proof of Concept stage and regulation is slowly catching up. However, we have already seen some applications that have gone live.
The ‘quickest win’ for blockchain in insurance is in the area of cost control. Rising costs are hitting insurers across most markets. Blockchain platforms and Dapps that allow firms to free up resources by automating claims management, fraud detection and data reconciliation, for example, will be heartily endorsed by executives.
The real win will be when blockchain platforms enable insurers to create better products and onboard customers faster — things that bring in revenue. For this to happen, we need a more robust ecosystem of insurers, reinsurers, tech companies and service providers working together on industry-standard blockchain platforms.
This has already started with software companies like R3 launching enterprise-grade blockchain platforms such as Corda Enterprise. We also have leading insurers involved in B3i that share common goals related to blockchain development. It remains to be seen if these natural competitors share enough long-term interests to sustain the initiative. If not, industry-wide blockchain adoption may take longer and become more fragmented.
However, the benefits are too obvious to ignore. We will probably see a few committed companies invest early in blockchain and enjoy a short period of above-normal performance, with early adoption coming from mature markets burdened with high costs as well as some parts of Southeast Asia (e.g. China, which proactively adopts tech). The rest of the industry will follow.
submitted by BlockDotCo to u/BlockDotCo [link] [comments]

Survey Responses Are IN!

I want to thank everyone who replied to our survey! Your feedback is extremely valuable!


Here are the results and how they're helping shape our direction.


What goals would you like to see us accomplish? What's most important to you in how this Quadriga situation ends?

This was an open-ended question and the answers varied widely (and there was definitely a lot of responses which mentioned multiple goals). Here's a summary:
The justice theme has been entirely overlooked by what we're doing. Discussing the idea on the Quadriga Uncovered Telegram group, it was determined that there was definite interest in a potential letter-writing initiative. One possibility would be sending letters to the RCMP to request the exhumation.


Is there any part of our initiative which confuses you?

Almost universally, there was no mention of any confusion.
The feedback we did receive:
Please feel free to reach out on Telegram and Reddit if there are any further questions!


Is it more important to you that we focus on (a) helping victims of Quadriga recover, (b) educating more people about Quadriga and other exchange fraud, or (c) preventing future exchange fraud events like Quadriga?

Of the first or only choice picked, 70% chose (a) helping victims of Quadriga recover, while 30% chose (c) preventing future exchange fraud events like Quadriga.
(a) was mentioned in 80% of cases, and top choice in 70%.
(b) was a second choice in 30% of cases and mentioned in 35%.
(c) was mentioned in 65% of responses and top choice in 30%.
The educational portion of our initiative was seen as the lowest value. We are floating the idea of replacing the Education goal with a separate Justice goal, which is composed of letter-writing and other advocacy to help speed up any potential criminal investigations.


What bothers you most about Canadian cryptocurrency exchanges?

The responses varied widely. Here's a selection:
There is clearly a lack of satisfaction.


Should preventing events like Quadriga focus more on regulatory reform (working with regulators) or trying to create change through setting the example on one exchange and go from there (similar to how "Tesla" has electrified vehicles)?

Overall summary:
Pressing forward on both fronts appears to make the most sense.


Would you rather have the recovery run inside of a for-profit exchange (sort of a marketing/promotion idea to push people onto a safer exchange) or as an independent group of affected users pushing for our own interests (working with the safer exchange and other businesses potentially similar to a labour union or political advocacy)?

The end result:
We will be working to run this independently, however working closely with our partner exchange as a joint project (and it is definitely a promotional tool for them).


If given the choice, would you prefer (a) $20 cash each year for 10 years (slower recovery with full choice), or (b) your choice of $200 worth of discounts on products/services that are donated by small businesses which you could use this year (faster recovery with less choices)?

60% indicated a preference for (b), and 40% had the preference for (a). There is clear interest in focusing on both, which will push the fastest and most flexible recovery.


Affected users have a liquidation option which allows non-victims to purchase their tokens on the exchange. How do you feel about charging non-victims a small fee (5 cents per token) that is split between funding the project and a pool for affected user payout?

50% expressed outright support for the idea. Below are more detailed responses and comments:
At the moment this has not yet been agreed upon by the partner exchange.


Have you discussed the project with anyone else who lost funds in Quadriga? What kind of feedback are you hearing?

40% said they've discussed it. 40% have not. 20% didn't answer (or it was hard to understand). Some of the responses:


Many affected users have strong privacy concerns and shame regarding what happened to them, such that they are even hesitant to share basic details. What do you feel is the best way to build trust and openness among the affected user community?

Here are some of the replies:

Notes: Percentages rounded to the nearest 5%.


Thank you very much for everyone who took the time to respond! We will continue to study your answers as we move forward!
submitted by azoundria2 to QuadrigaInitiative [link] [comments]

Daily Crypto Brief for Thursday, June 18, 2020.

This is your ITB Media Daily Crypto Brief for Thursday, June 18, 2020.
In Mainstream Financial News.
CNBC reports: We’ve put a regulatory wrapper around bitcoin, ETC Group CEO says
Bradley Duke, CEO of ETC Group, discusses the launch of the company’s bitcoin exchange-traded product.
Bloomberg Headline: ‘Bitcoin Boomers’ Fuel Growth at Startup River Financial
River Financial Inc., a startup Bitcoin financial services firm, said its number of clients has doubled every month this year, fueled by what it called “Bitcoin Boomers,” or new cryptocurrency investors over the age of 55. ... Since March, Bitcoin Boomers have accounted for 77% of River Financial's volume growth.
The Asia Times Reports: Bolton: Trump wanted to ‘go after Bitcoin’.
In July 2019, US President Donald Trump came out harshly against Bitcoin, broadcasting skepticism about it and other cryptocurrencies to his dozens of millions of Twitter followers, Nick Chong. wrote in Forbes.
Wall Street Journal Headline: Cyber Daily: Oversight of Cryptocurrency and Other Financial Technology Is Evolving
Oversight of Cryptocurrency and Other Financial Technology Is Evolving. Good day. ... Hackers attacking cryptocurrency exchanges in the last 18 months have stolen millions of dollars of bitcoin and other digital currencies. Plus, a large share of cryptocurrency trades appear to be fake, some researchers say.
Forbes Headline: Why Bitcoin Is Valuable - Debunking The ‘Greater Fool’ Theory
Those of us who have spent time investigating crypto—including some of the leading technology companies, entrepreneurs, inventors, and venture capitalists—foresee a future where money moves with the speed of text messages, where financial access is available to all, and where all investors have an easy way to escape the casual destruction of wealth that attends most fiat currencies over time. As this world arrives, you’ll be glad to have bought a stake before the value becomes plain for all to see.

In Crypto Publications headlines.
Cointelegraph reports: Ontology and Bitcoin Suisse Partner to Strengthen European Ecosystems
Blockchain platform Ontology has partnered with Swiss service provider Bitcoin Suisse as part of their European growth strategy. Blockchain platform Ontology and Swiss crypto-financial service provider Bitcoin Suisse have partnered together in an effort to grow their respective ecosystems in Europe and Asia.
Coindesk.com headline: US Drug Agency Failed to Properly Oversee Crypto Investigations: DOJ Report
The Drug Enforcement Administration (DEA) failed to adequately police its undercover agents' handling of cryptocurrency, even years after one of its agents stole $700,000 in bitcoin in 2015, according to a new report from the U.S. Department of Justice's Office of the Inspector General (IG).
Crypto news.com reports on its front page: Insider Claims Trump ’Told Treasury Secretary’ to ’Go After’ Bitcoin - Report
"Don't be a trade negotiator. [...] Go after bitcoin [for fraud]."
submitted by Gigantile to CryptoCurrencies [link] [comments]

TokenClub Bi-Weekly Report — Issue 114(5.4–5.17)

TokenClub Bi-Weekly Report — Issue 114(5.4–5.17)

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Hello everyone, thank you for your continued interest and support. In the past two weeks, various tasks of TokenClub have been progressing steadily. The product development and community operation progress this week are as follows:
1. TokenClub Events
1)Binance blockchain live streaming program “Block 101” joins TokenClub APP
TokenClub teamed up with Binance “Block 101” to host a series of live broadcast events. In the past two weeks, the big brothers such as the CEO of Feixin, Cobo co-founder Shenyu, and IOST co-founder Terry visited the TokenClub live broadcast room. See live summary. “Block 101” is a live broadcast of dialogues launched by Binance New Media Marketing Team, hosted by Jiayi, Anna, Liuliu, Yingge, Sisi, Qiqi, Doris, etc. Here will invite entrepreneurs in the industry, investment giants, opinion leaders, trading bulls or ordinary people with stories. Every Monday to Friday, with you in the TokenClub live room.

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2)Participate in poster forwarding, draw red envelope prize
When Bitcoin halves, TokenClub launches a poster forwarding red envelope campaign. On the day of the event, forward the poster to Twitter and the telegram group, and upload a screenshot to have the opportunity to extract the TCT red envelope award ~



3)Participate in live streaming interactive questions and win mysterious gift events
From May 11th to May 15th, TokenClub launched a live question and prize draw event. During the event, watch the block 101 live broadcast and interact with questions during the live broadcast, you will have the opportunity to get a mysterious gift from TokenClub.


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3)TokenClub’s self-media Bilaoye was invited to participate in AMA
a. On May 7th,Bilaoye was invited by UPChain to conduct an AMA with the theme of “Half Countdown, Where Will the Market Go” in the Chains community. AMA article link:
http://public.tokenup100.com/page/article.html?articleId=f1db8c6bfaa94886bbdd863ec9908252&from=timeline&isappinstalled=0
b. On May 8th, Bilaoye was invited by Golden Finance to conduct an AMA with the theme “Bitcoin Breaks Over US $ 10,000 and Will Do This in Half”. Review link:
https://m.jinse.com/live/topic?id=11813&from=singlemessage&isappinstalled=0
C. On May 14, Bilaoye was invited by Cailu Finance to conduct an AMA with the theme of “Correct Postures for Depositing Money” in the Cailu community.Review link:

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2.TokenClub Live
1) Summary
Recently, Feng Yuqing, the director of Yicai Global America, the first Chinese reporter to interview Buffett, the organizer & host of the First Financial New York Forum; a world-renowned financial expert, a professor of finance at the Cheung Kong Graduate School of Business, and the director of the finance department -Cao Huining; ARPA founder Felix, SWFT Blockchain one-stop currency exchange cross-chain platform operation in Greater China & BD leader-Ye Fei, mining big man Binxin Mining CEO “Feige”, contract emperor co-founder Xiaoding, AlchemyPay co-founder Shi Xiang, financial expert & first-line trader Xu Zhe, Huobi Key Account Manager-Xiaotong, Roark Group & Bitribe & 499 Block founder sky, Cobo co-founder Shenyu, DappReview CEO Niu Fengxuan, IOST co-founder Terry; and TokenClub blockchain and cryptocurrency investment strategy senior expert-Zao Shen talks with you about the blockchain ~
On May 6, Block 101 Sisi Dialogue Felix, the founder of the hard-core technical team on the blockchain, ARPA Felix, the theme is “The Wall Street Battle of the Wall Street Elite”. In this live dialogue, the resume is dazzling. , The young man who was free to switch between “Yangchun Baixue” and “earthed gas” from the team’s initial heart chat to his investment strategy to the judgment of the entire currency market, his fanaticism of rock seems to explain a series of “adventure” options- — Longing for a more free and innovative world.


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On May 6th, TokenClub invited the one-stop SWFT Blockchain currency exchange cross-chain platform Greater China operation & BD leader-Ye Fei as a guest to “Jingjing at 8 o’clock” live broadcast, bringing us “flash exchange in the future block The theme of “Chain Payment Ecosystem” is shared. Mr. Ye made a detailed interpretation of SWFTC, and revealed the development plan of SWFTC, and exchanged questions and answers with fans enthusiastically.

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On May 7th, Block 101 Luna talked to the CEO of the mining industry, who is most familiar with KTV, Kexin Mining, “Fei Ge”. Liu Fei talked to Bin An Luna, he counted his mining “stepping on the pit road” “, Talking about halving the market and investment experience, talking to the second half, wearing a red Polo shirt, he began to persuade everyone to learn more in the KTV in Beijing at night, and recommended books.


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On May 8, the TokenClub live column-”Professor had an appointment” shared the theme: “BOC crude oil treasure and financial derivatives market”. In this issue, Professor Cao invited the first U.S. Global Director of the United States, the first Chinese reporter to interview Buffett, the organizer & host of the First Financial New York Forum, and Columbia University Master of International Relations Feng Yuqing to share with guests on Chain, digital currency financial derivatives market, etc. have done a detailed exchange analysis.

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On May 8th, block 101 was led by Binance BD’s head Li Jiayi, who talked about contract emperor co-founder Xiao Dingdang. He is an old code farmer who is known for his futures contract operations. He wrote a 10-year code, and the front end Everyone is familiar with it, and it is hard to say anything on the line of speech. Frankly, he talked from his fortune history to the story of the endless number of contract circles, and shared his trading iron law with everyone: there must be a stop loss; must practice more and try more.


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On May 9th, Zaoshen is coming ~ The sharing theme of this issue is: The Yangtze River will push back and forth, and one wave will be more than one wave. Speaking of the “Houlang” hot event, Zao Shen mainly analyzed the halving market with everyone in detail, to see how many opportunities there are and what strategies to choose. Soul asked: How much money did you make in this wave of quotes?


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On May 11, Block 101 was discussed by Binance Qiqi Dialogue AlchemyPay co-founder Shi Xiang, the former vice president of Zhongan Technology and the founder of Micro Index shared with you the experience of dealing with overseas regulators: supervision is not actually strong Groups, regulation will strike you because you are worried about doing bad things, but as long as you are willing to actively communicate, regulation usually gives a tolerance period. For more content, please move to the live room.

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May 12, Exclusive: Huobi Global & Knowing Daniel Interpretation of “Physical Currency, Debt Currency to Encrypted Digital Currency”. The key account manager of Huobi Global has a conversation with financial expert and front-line trader Xu Zhe, talking about physical currency, debt currency and encrypted digital currency. Work is tired enough, the market is already exciting enough, pick Xu Da Tucao various currencies, teach you to return all the money. The value of the young lady’s face is a feeling of emotion.


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On May 12, Block 101 was founded by Binance Thinking, the founder of Roark Group, Bitribe, and 499Block. Sky, a science and technology man from Tsinghua University and MIT, has the title of “Coin Circle Zheng Kai”. Sky said that starting a business in the blockchain industry is like drifting in the turbulent Amazon River. If you do n’t believe that you will eventually reach the sea, you will be thrown off. Sky believes that Bitcoin is essentially a consensus based on time. Halving is like escaping the monsters, and each level increases the consensus.

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On May 13th, Block 101 Luna talked to F2Pool and Cobo co-founder Shenyu, and talked about the “new” story of Bitcoin. Leo ’s Godfish talked to us about the monopoly of computing power, mining pool operations, halving and Cobo ’s future development goals. He said that 80–90% of personal assets are Bitcoin, and about 10% of Ethereum and other Strange coins from mining. It is called “the first segment of the coin circle” because “more pits are filled, so in the end each pit becomes a stalk.”

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On May 14, Niu Fengxuan, CEO of DappReview, talked about “how ordinary people make money through Dapp”. Niu Fengxuan graduated from Fudan and Stanford. He is a serious game enthusiast. He has written many in-depth game evaluations and is an early participant of Dapp. He said that many people think that the biggest application of blockchain is speculation, but the technology ultimately serves products and applications. In the long run, if blockchain can really bring changes and innovations to the world technically, then it must be C-side users should feel it in a more friendly way in other fields.


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On May 15th, Block 101 Yingge talked to IOST co-founder Terry and talked about “The Blockchain Ideal of Princeton Schoolmaster”. Terry told us about his sad history, happy history, and experience and experience of mining from college mining to graduate school to entrepreneurship, talked about the development direction of the blockchain market, and interacted with fans.


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On May 16th, senior expert Zao Shen brought a live broadcast on the theme of “Depth Is Insufficient In Operation, How To Play With Crash”. In this live broadcast, in addition to analyzing the macro level of the economy, Zao Shen also focused on sharing The specific operation skills emphasized the principle of buying and selling, and finally commented on the hot events such as the recent Federal Reserve announcement that it will not fall to negative interest rates.


3.TokenClub operation data
-Live data: 13 live broadcasts in the past two weeks, with over 600,000 views. TokenClub hosted a total of 835 live broadcasts with a total of 44.25 million views.
-Binary trade data: In the past two weeks, guess the rise and fall to participate in a total of 1060 times, the amount of participation exceeded 2 million TCT. At present, it is guessed that the rise and fall function has participated in a total of 1.11 million times, with a cumulative participation amount of 496 million TCT.
-Chat data: In the past two weeks, a total of 28,950 messages have been generated. A total of 4.83 milliom messages have been launched since the function was launched.
-Mini-game data: The mini-game has participated in a total of 7,830 times in the past two weeks. A total of 1,66 million self-functions have been online.
-Cut leeks game data together: Since the game was launched, the total number of user participation in the game was 954,364 TCT total consumption was 6,27 million gift certificate total consumption was 15,53 million and TCT mining output was 160,48.
-TokenClub KOL data: Over the past two weeks, the total reading volume of the BTCGrandpa article has been viewed by more than 300,000 people.
-Social media data: At present, the number of Weibo official accounts is 17,972 and the number of Twitter followers is 1310, and we have opened the official Medium account this week, welcome to follow.
-Telegram official group data: In the past 2 weeks, there were 310 chats in the group, and the total number of Telegram official groups is currently 2971.
-Medium data: Medium official account u/TokenClub has published 1 excellent articles, official announcements and updates are published in English, welcome to follow.
4.Communities
1)Overseas community
TokenClub held an event for forwarding Twitter and telegram group chats for overseas users. Bitcoin halved in less than two weeks, overseas users are more active in the telegram group, and some friends are more concerned about Binance Block 101 live broadcast, aggregation exchange, TCT usage and other issues, the administrator responded in time.On May 12th, when Bitcoin was halved, TokenClub organized a forwarding Twitter, telegram group chat prize event and participating in a live question asking interactive prize event for overseas users. There are many live broadcast events in the near future. The live broadcast poster information will be released to overseas users as soon as possible. The follow-up TokenClub will translate and broadcast high-quality live broadcast content to Twitter and Medium. Bitcoin halved, overseas users are more active in the telegram group, and some partners are more concerned about block 101 live broadcast, bitcoin future price trend, TCT usage and other issues, the administrator responded in time in the group.

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2)Domestic community
Last Friday, a holiday, the community opened the red envelope rain event, and brought a sincere gift to everyone while relaxing in the holiday. At the same time, it also sent the most sincere blessings to all mothers in the community on Mother’s Day. Thank you for your long-term support and help to the Orange Club community.


The third week of the second 100-day fixed investment plan held this week has been awarded. The participation of this event is still quite positive. This week, the bitcoin halving market was also opened in advance. If it starts according to the first day The small partners participating in the fixed investment should now have a certain floating win, so we adopt the correct cycle investment strategy to believe that it can bring unexpected benefits to everyone.


On May 9th and May 16th, TCT Fortune Free Academy carried out red envelope party activities as scheduled. In the event, in addition to GF red envelopes, students were reminded that there may be a callback risk after the pie halving, and short-term profits are available.


On the evening of May 3rd and May 10th, TCT Fortune Free Academy carried out the 51st and 52nd week sign-in sweepstakes, and rewarded the small TCT partners who had always insisted on signing in. In these two sign-in sweepstakes, the lucky friends received 20–180TCT as a reward. In addition, during the lucky draw, the college friends also actively expressed their opinions on the topic of this year’s bull market.

The Leek Paradise Community Conference will continue as usual every Sunday at 20:00. During the conference, members will discuss recent hot topics, including gifts and blessings for Mother ’s Day, and the halving of Bitcoin everyone is paying attention to. At the end, the friends in the group also showed a rare enthusiasm at the first sight. It seems that the market still affects the mood. The members routinely started a red envelope rain to cheer for the participating partners and encourage everyone to maintain patience and confidence. Of course, at the same time, we are encouraging ourselves to see the community meeting next week. Come on!

TokenClub volunteer community, sign in red envelopes every day, as long as you sign in every day, you can get good benefits, friends join us quickly! In the past two weeks, the community has conducted active partners.

TCT has been listed on Binance、Okex、Gate.io、ZB-M、MXC、Biki、Coinex、BigOne、Coinbene、Cybex、SWFT、Loopring、Rootrex etc.
TokenClub website: www.tokenclub.com
Telegram:https://t.me/token\_club
TokenClub App download QR code

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Quant Network: Token valuation dynamics and fundamentals

Quant Network: Token valuation dynamics and fundamentals
This post intends to illustrate the dynamics and fundamentals related to the mechanics and use of the Quant Network Utility Token (QNT), in order to provide the community with greater clarity around what holding the token actually means.
This is a follow-up on two articles David W previously wrote about Quant Network’s prospects and potential, which you can find here:
For holders not intending to use Overledger for business reasons, the primary goal of holding the QNT token is to benefit from price appreciation. Some are happy to believe that speculation will take the QNT price to much higher levels if and when large-scale adoption/implementation news comes out, whilst others may actually prefer to assess the token’s utility and analyse how it would react to various scenarios to justify a price increase based on fundamentals. The latter is precisely what I aim to look into in this article.
On that note, I have noticed that many wish to see institutional investors getting involved in the crypto space for their purchase power, but the one thing they would bring and that is most needed in my opinion is fundamental analysis and valuation expectations based on facts. Indeed, equity investors can probably access 20 or 30 reports that are 15 pages long and updated on a quarterly basis about any blue chip stock they are invested in, but how many of such (professional) analyst reports can you consult for your favorite crypto coins? Let me have a guess: none. This is unfortunate, and it is a further reason to look into the situation in more details.
To be clear, this article is not about providing figures on the expected valuation of the token, but rather about providing the community with a deeper analysis to better understand its meaning and valuation context. This includes going through the (vast) differences between a Utility Token and a Company Share since I understand it is still blurry in some people’s mind. I will incorporate my thoughts and perspective on these matters, which should not be regarded as a single source of truth but rather as an attempt to “dig deeper”.
In order to share these thoughts with you in the most pertinent manner, I have actually entirely modelled the Quant Treasury function and analysed how the QNT token would react to various scenarios based on a number of different factors. That does not mean there is any universal truth to be told, but it did help in clarifying how things work (with my understanding of the current ruleset at least, which may also evolve over time). This is an important safety net: if the intensity of speculation in crypto markets was to go lower from here, what would happen to the token price? How would Quant Treasury help support it? If the market can feel comfortable with such situation and the underlying demand for the token, then it can feel comfortable to take it higher based on future growth expectations — and that’s how it should be.
Finally, to help shed light on different areas, I must confess that I will have to go through some technicalities on how this all works and what a Utility Token actually is. That is the price to pay to gain that further, necessary knowledge and be in a position to assess the situation more thoroughly — but I will make it as readable as I possibly can, so… if are you ready, let’s start!

A Utility Token vs. a Company Share: what is the difference?

It is probably fair to say that many people involved in the crypto space are unfamiliar with certain key financial terms or concepts, simply because finance is not necessarily everyone’s background (and that is absolutely fine!). In addition, Digital Assets bring some very novel concepts, which means that everyone has to adapt in any case.
Therefore, I suggest we start with a comparison of the characteristics underpinning the QNT Utility Token and a Quant Network Company Share (as you may know, the Company Shares are currently privately held by the Quant Network founders). I believe it is important to look at this comparison for two reasons:
  1. Most people are familiar with regular Company Shares because they have been traded for decades, and it is often asked how Utility Tokens compare.
  2. Quant Network have announced a plan to raise capital to grow their business further (in the September 2019 Forbes article which you can find here). Therefore, regardless of whether the Share Offering is made public or private, I presume the community will want to better understand how things compare and the different dynamics behind each instrument.
So where does the QNT Utility Token sit in Quant Network company and how does it compare to a Quant Network Company Share? This is how it looks:
https://preview.redd.it/zgidz8ed74y31.png?width=1698&format=png&auto=webp&s=54acd2def0713b67ac7c41dae6c9ab225e5639fa
What is on the right hand side of a balance sheet is the money a company has, and what is on the left hand side is how it uses it. Broadly speaking, the money the company has may come from the owners (Equity) or from the creditors (Debt). If I were to apply these concepts to an individual (you!), “Equity” is your net worth, “Debt” is your mortgage and other debt, and “Assets” is your house, car, savings, investments, crypto, etc.
As you can see, a Company Share and a Utility Token are found in different parts of the balance sheet — and that, in itself, is a major difference! They indeed serve two very different purposes:
  • Company Shares: they represent a share of a company’s ownership, meaning that you actually own [X]% of the company ([X]% = Number of shares you possess / Total number of shares) and hence [X]% of the company’s assets on the left hand side of the balance sheet.
  • Utility Tokens: they are keys to access a given platform (in our case, Quant Network’s Operating System: Overledger) and they can serve multiple purposes as defined by their Utility Document (in QNT’s case, the latest V0.3 version can be found here).
As a consequence, as a Company Shareholder, you are entitled to receive part or all of the profits generated by the company (as the case may arise) and you can also take part in the management decisions (indeed, with 0.00000001% of Apple shares, you have the corresponding right to vote to kick the CEO out if you want to!).
On the other hand, as a Utility Token holder, you have no such rights related to the company’s profits or management, BUT any usage of the platform has to go through the token you hold — and that has novel, interesting facets.

A Utility Token vs. a Company Share: what happens in practice?

Before we dig further, let’s now remind ourselves of the economic utilities of the QNT token (i.e. in addition to signing and encrypting transactions):
  1. Licences: a licence is mandatory for anyone who wishes to develop on the Overledger platform. Enterprises and Developers pay Quant Network in fiat money and Quant Treasury subsequently sets aside QNT tokens for the same amount (a diagram on how market purchases are performed can be found on the Overledger Treasury page here). The tokens are locked for 12 months, and the current understanding is that the amount of tokens locked is readjusted at each renewal date to the prevailing market price of QNT at the time (this information is not part of the Utility Token document as of now, but it was given in a previous Telegram AMA so I will assume it is correct pending further developments).
  2. Usage: this relates to the amount of Overledger read and write activity performed by clients on an ongoing basis, and also to the transfer of Digital Assets from one chain to another, and it follows a similar principle: fiat money is received by Quant Network, and subsequently converted in QNT tokens (these tokens are not locked, however).
  3. Gateways: information about Gateways has been released through the Overledger Network initiative (see dedicated website here), and we now know that the annual cost for running a Gateway will be 500 QNT whilst Gateway holders will receive a percentage of transaction fees going through their setup.
  4. Minimum holding amounts: the team has stated that there will be a minimum QNT holding amount put in place for every participant of the Overledger ecosystem, although the details have not been released yet.
That being said, it now becomes interesting to illustrate with indicative figures what actually happens as Licences, Usage and Gateways are paid for and Quant Network company operates. The following diagram may help in this respect:
Arbitrary figures from myself (i.e. no currency, no unit), based on an indicative 20% Net Income Ratio and a 40% Dividend yield
We have now two different perspectives:
  • On the right hand side, you see the simplified Profit & Loss account (“P&L”) which incorporates Total Revenues, from which costs and taxes are deducted, to give a Net Income for the company. A share of this Net Income may be distributed to Shareholders in the form of a Dividend, whilst the remainder is accounted as retained profits and goes back to the balance sheet as Equity to fund further growth for instance. Importantly, the Dividend (if any) is usually a portion of the Net Income so, using an indicative 40% Dividend yield policy, shareholders receive here for a given year 80 out of total company revenues of 1,000.
  • On the left hand side, you see the QNT requirements arising from the Overledger-related business activity which equal 700 here. Note that this is only a portion of the Total Revenues (1,000) you can see on the right hand side, as the team generates income from other sources as well (e.g. consultancy fees) — but I assume Overledger will represent the bulk of it since it is Quant Network’s flagship product and focus. In this case, the equivalent fiat amount of QNT tokens represents 700 (i.e. 100% of Overledger-related revenues) out of the company’s Total Revenues of 1,000. It is to be noted that excess reserves of QNT may be sold and generate additional revenues for the company, which would be outside of the Overledger Revenues mentioned above (i.e. they would fall in the “Other Revenues” category).
A way to summarise the situation from a very high level is: as a Company Shareholder you take a view on the company’s total profits whereas as a Utility Token holder you take a view on the company’s revenues (albeit Overledger-related).
It is however too early to reach any conclusion, so we now need to dig one level deeper again.

More considerations around Company Shares

As we discussed, with a Company Share, you possess a fraction of the company’s ownership and hence you have access to profits (and losses!). So how do typical Net Income results look in the technology industry? What sort of Dividend is usually paid? What sort of market valuations are subsequently achieved?
Let’s find out:
https://preview.redd.it/eua9sqlt74y31.png?width=2904&format=png&auto=webp&s=3500669942abf62a0ea1c983ab3cea40552c40d1
As you can see, the typical Net Income Ratio varies between around 10% and 20% in the technology/software industry (using the above illustrated peer group). The ratio illustrates the proportion of Net Income extracted from Revenues.
In addition, money is returned to Company Shareholders in the form of a Dividend (i.e. a portion of the Net Income) and in the form of Share repurchases (whereby the company uses its excess cash position to buy back shares from Shareholders and hence diminish the number of Shares available). A company may however prefer to not redistribute any of the profits, and retain them instead to fund further business growth — Alphabet (Google) is a good example in this respect.
Interestingly, as you can see on the far right of the table, the market capitalisations of these companies reflect high multiples of their Net Income as investors expect the companies to prosper in the future and generate larger profits. If you wished to explore these ideas further, I recommend also looking into the Return on Equity ratio which takes into account the amount of resources (i.e. Capital/Equity) put to work to generate the companies’ profits.
It is also to be noted that the number of Company Shares outstanding may vary over time. Indeed, aside from Share repurchases that diminish the number of Shares available to the market, additional Shares may be issued to raise additional funds from the market hence diluting the ownership of existing Shareholders.
Finally, (regular) Company Shares are structured in the same way across companies and industries, which brings a key benefit of having them easily comparable/benchmarkable against one another for investors. That is not the case for Utility Tokens, but they come with the benefit of having a lot more flexible use cases.

More considerations around the QNT token

As discussed, the Utility Token model is quite novel and each token has unique functions designed for the system it is associated with. That does not make value assessment easy, since all Utility Tokens are different, and this is a further reason to have a detailed look into the QNT case.
https://preview.redd.it/b0xe0ogw74y31.png?width=1512&format=png&auto=webp&s=cece522cd7919125e199b012af41850df6d9e9fd
As a start, all assets that are used in a speculative way embed two components into their price:
A) one that represents what the asset is worth today, and
B) one that represents what it may be worth in the future.
Depending on whether the future looks bright or not, a price premium or a price discount may be attached to the asset price.
This is similar to what we just saw with Company Shares valuation multiples, and it is valid across markets. For instance, Microsoft generates around USD 21bn in annual Net Income these days, but the cost of acquiring it entirely is USD 1,094bn (!). This speculative effect is particularly visible in the crypto sector since valuation levels are usually high whilst usage/adoption levels are usually low for now.
So what about QNT? As mentioned, the QNT Utility model has novel, interesting facets. Since QNT is required to access and use the Overledger system, it is important to appreciate that Quant Network company has three means of action regarding the QNT token:
  1. MANAGING their QNT reserves on an ongoing basis (i.e. buying or selling tokens is not always automatic, they can allocate tokens from their own reserves depending on their liquidity position at any given time),
  2. BUYING/RECEIVING QNT from the market/clients on the back of business activity, and
  3. SELLING QNT when they deem their reserves sufficient and/or wish to sell tokens to cover for operational costs.
Broadly speaking, the above actions will vary depending on business performance, the QNT token price and the Quant Network company’s liquidity position.
We also have to appreciate how the QNT distribution will always look like, it can be broken down as follows:
https://preview.redd.it/f20h7hvz74y31.png?width=1106&format=png&auto=webp&s=f2f5b63272f5ed6e3f977ce08d7bae043851edd1
A) QNT tokens held by the QNT Community
B) QNT tokens held by Quant Network that are locked (i.e. those related to Licences)
C) QNT tokens held by Quant Network that are unlocked (i.e. those related to other usage, such as consumption fees and Gateways)
D) the minimum QNT amount held by all users of the platform (more information on this front soon)
So now that the situation is set, how would we assess Quant Network’s business activity effect on the QNT token?
STEP 1: We would need to define the range of minimum/maximum amounts of QNT which Quant Network would want to keep as liquid reserves (i.e. unlocked) on an ongoing basis. This affects key variables such as the proportion of market purchases vs. the use of their own reserves, and the amount of QNT sold back to the market. Also, interestingly, if Quant Network never wanted to keep less than, for instance, 1 million QNT tokens as liquid reserves, these 1 million tokens would have a similar effect on the market as the locked tokens because they would never be sold.
STEP 2: We would need to define the amount of revenues that are related to QNT. As we know, Overledger Licences, Usage and Gateways generate revenues converted into QNT (or in QNT directly). So the correlation is strong between revenues and QNT needs. Interestingly, the cost of a licence is probably relatively low today in order to facilitate adoption and testing, but it will surely increase over time. The same goes for usage fees, especially as we move from testing/pilot phases to mass implementation. The number of clients will also increase. The Community version of Overledger is also set to officially launch next year. More information on revenue potential can be found later in this article.
STEP 3: We would need to define an evolution of the QNT token price over time and see how things develop with regards to Quant Network’s net purchase/sale of tokens every month (i.e. tokens required - tokens sold = net purchased/sold tokens).
Once assumptions are made, what do we observe?
In an undistorted environment, there is a positive correlation between Quant Network’s QNT-related revenues and the market capitalisation they occupy (i.e. the Quant Network share of the token distribution multiplied by the QNT price). However, this correlation can get heavily twisted as the speculative market prices a premium to the QNT price (i.e. anticipating higher revenues). As we will see, a persistent discount is not really possible as Quant Treasury would mechanically have to step in with large market purchases, which would provide strong support to the QNT price.
In addition, volatility is to be added to the equation since QNT volatility is likely to be (much) higher than that of revenues which can create important year-on-year disparities. For instance, Quant Treasury may lock a lot of tokens at a low price one year, and be well in excess of required tokens the next year if the QNT token price has significantly increased (and vice versa). This is not an issue per se, but this would impact the amount of tokens bought/sold on an ongoing basis by Quant Treasury as reserves inflate/deflate.
If we put aside the distortions created by speculation on the QNT price, and the subsequent impact on the excess/deficiency of Quant Network token reserves (whose level is also pro-actively managed by the company, as previously discussed), the economic system works as follows:
High QNT price vs. Revenue levels: The value of reserves is inflated, fewer tokens need to be bought for the level of revenues generated, Quant Treasury provides low support to the QNT price, its share of the token distribution diminishes.
Low QNT price vs. Revenue levels: Reserves run out, a higher number of tokens needs to be bought for the level of revenues generated, Quant Treasury provides higher support to the QNT price, its share of the token distribution increases.
Summary table:
https://preview.redd.it/q7wgzpv384y31.png?width=2312&format=png&auto=webp&s=d8c0480cb34caf2e59615ec21ea220d81d79b153
The key here is that, whatever speculation on future revenue levels does to the token in the first place, if the QNT price was falling and reaching a level that does not reflect the prevailing revenue levels of Overledger at a given time, then Quant Treasury would require a larger amount of tokens to cover the business needs which would mean the depletion of their reserves, larger purchases from the market and strong support for the QNT price from here. This is the safety net we want to see, coming from usage! Indeed, in other words, if the QNT price went very high very quickly, Quant Treasury may not be seen buying much tokens since their reserves would be inflated BUT that fall back mechanics purely based on usage would be there to safeguard QNT holders from the QNT price falling below a certain level.
I would assume this makes sense for most, and you might now wonder why have I highlighted the bottom part about the token distribution in red? That is because there is an ongoing battle between the QNT community and Quant Treasury — and this is very interesting.
The ecosystem will show how big a share is the community willing to let Quant Network represent. The community actually sets the price for the purchases, and the token distribution fluctuates depending on the metrics we discussed. An equilibrium will be formed based on the confidence the market has in Quant Network’s future revenue generation. Moreover, the QNT community could perceive the token as a Store of Value and be happy to hold 80/90% of all tokens for instance, or it could perceive QNT as more dynamic or risky and be happy to only represent 60/70% of the distribution. Needless to say that, considering my previous articles on the potential of Overledger, I think we will tend more towards the former scenario. Indeed, if you wished to store wealth with a technology-agnostic, future proof, globally adopted, revenue-providing (through Gateways) Network of Networks on which most of the digitalised value is flowing through — wouldn’t you see QNT as an appealing value proposition?
In a nutshell, it all comes down to the Overledger revenue levels and the QNT holders’ resistence to buy pressure from Quant Treasury. Therefore, if you are confident in the Overledger revenue generation and wish to see the QNT token price go up, more than ever, do not sell your tokens!
What about the locked tokens? There will always be a certain amount of tokens that are entirely taken out of circulation, but Quant Network company will always keep additional unlocked tokens on top of that (those they receive and manage as buffer) and that means that locked tokens will always be a subset of what Quant Network possesses. I do not know whether fees will primarily be concentrated on the licencing side vs. the usage side, but if that were to be the case then it would be even better as a higher amount of tokens would be taken out of circulation for good.
Finally, as long as the company operates, the revenues will always represent a certain amount of money whereas this is not the case for profits which may not appear before years (e.g. during the first years, during an economic/business downturn, etc.). As an illustration, a company like Uber has seen vast increases in revenues since it launched but never made any profit! Therefore, the demand for the QNT token benefits from good resilience from that perspective.
Quant Network vs. QNT community — What proportion of the QNT distribution will each represent?

How much revenues can Overledger generate?

I suggest we start with the basis of what the Quant Network business is about: connecting networks together, building new-generation hyper-decentralised apps on top (called “mApps”), and creating network effects.
Network effects are best defined by Metcalfe’s law which states: “the effect of a telecommunications network is proportional to the square of the number of connected users of the system” (Source: Wikipedia). This is illustrated by the picture below, which demonstrates the increasing number of possible connections for each new user added to the network. This was also recently discussed in a YouTube podcast by QNT community members “Luke” and “Ghost of St. Miklos” which you can watch here.
Source: applicoinc.com
This means that, as Overledger continues to connect more and more DLTs of all types between themselves and also with legacy systems, the number of users (humans or machines) connected to this Network of Networks will grow substantially — and the number of possible connections between participants will in turn grow exponentially. This will increase the value of the network, and hence the level of fees associated with getting access to it. This forms the basis of expected, future revenue generation and especially in a context where Overledger remains unique as of today and embraced by many of the largest institutions in the world (see the detailed summary on the matter from community member “Seq” here).
On top of this network, multi-chain hyper-decentralised applications (‘mApps’) can be built — which are an upgrade to existing dApps that use only one chain at a time and hence only benefit from the user base and functionalities of the given chain. Overledger mApps can leverage on the users and abilities of all connected chains at the same time, horizontal scaling, the ability to write/move code in any language across chains as required, write smart contracts on blockchains that do not support them (e.g. Bitcoin), and provide easier connection to other systems. dApps have barely had any success so far, as discussed in my first article, but mApps could provide the market with the necessary tools to build applications that can complement or rival what can be found on the Apple or Google Play store.
Also, the flexibility of Overledger enables Quant Network to target a large number of industries and to connect them all together. A sample of use cases can be found in the following illustration:
https://preview.redd.it/th8edz5b84y31.png?width=2664&format=png&auto=webp&s=105dd4546f8f9ab2c66d1a5a8e9f669cef0e0614
It is to be noted that one of the use cases, namely the tokenisation of the entire world’s assets, represents a market worth hundreds of trillions of USD and that is not even including the huge amount of illiquid assets not currently traded on traditional Capital Markets which could benefit from the tokenisation process. More information on the topic can be found in my previous article fully focused on the potential of Overledger to capture value from the structural shift in the world’s assets and machine-related data/value transfers.
Finally, we can look at what well established companies with a similar technology profile have been able to achieve. Overledger is an Operating System for DLTs and legacy systems on top of which applications can be built. The comparison to Microsoft Windows and the suite of Microsoft Software running on top (e.g. Microsoft Office) is an obvious one from that perspective to gauge the longer term potential.
As you can see below, Microsoft’s flagship softwares such as Windows and Office each generate tens of billions of USD of revenues every year:
Source: Geekwire
We can also look at Oracle, the second largest Enterprise software company in the world:
Source: Statista
We can finally look at what the Apple store and the Google Play store generate, since the Quant Network “mApp store” for the community side of Overledger will look to replicate a similar business model with hyper-decentralised applications:
Source: Worldwide total revenue by app store, 2018 ($bn)
The above means total revenues of around USD 70bn in 2018 for the Apple store and Google Play store combined, and the market is getting bigger year-on-year! Also, again, these (indicative!) reference points for Overledger come in the context of the Community version of the system only, since the Enterprise version represents a separate set of verticals more comparable to the likes of Microsoft and Oracle which we just looked at.

Conclusion

I hope this article helped shed further light on the QNT token and how the various market and business parameters will influence its behavior over time, as the Quant Network business is expected to grow exponentially in the coming years.
In the recent Forbes interview, Quant Network’s CEO (Gilbert Verdian) stated : “Our potential to grow is uncapped as we change and transform industries by creating a secure layer between them at speed. Our vision is to build a mass version of what I call an internet of trust, where value can be securely transferred between global partners not relying on defunct internet security but rather that of blockchain.”.
This is highly encouraging with regards to business prospects and also in comparison to what other companies have been able to achieve since the Web as we know it today emerged (e.g. Microsoft, Google, Apple, etc.). The Internet is now entering a new phase, with DLT technology at its core, and Overledger is set to be at the forefront of this new paradigm which will surely offer a vast array of new opportunities across sectors.
I believe it is an exciting time for all of us to be part of the journey, as long as any financial commitment is made with a good sense of responsibility and understanding of what success comes down to. “Crypto” is still immature in many respects, and the emergence of a dedicated regulatory framework combined with the expected gradual, selective entrance of institutional money managers will hopefully help shed further light and protect retail token holders from the misunderstandings, misinformation and misconduct which too many have suffered from in the last years.
Thanks for your time and interest.
Appendix:
First article: “The reasons why Quant Network (QNT) will rise to the Top of the crypto sphere in the coming months”
Second article: “The potential of Quant Network’s technology to capture value from the structural shift in the World’s assets and machine-related data/value transfers”
October 2019 City AM interview of Gilbert Verdian (CEO): Click here
October 2019 Blockchain Brad interview of Gilbert Verdian (CEO): Click here
July 2019 Blockchain Brad interview of Gilbert Verdian (CEO): Click here
February 2019 Blockchain Brad interview of Gilbert Verdian (CEO): Click here
----
About the original author of the article:
My name is David and I spent years in the Investment Banking industry in London. I hold QNT tokens and the above views are based on my own thoughts and research only. I am not affiliated with the Quant Network team in any way. This is not investment advice, please do your own research and understand what you are buying before doing so. It is also my belief that more than 90% of all other crypto projects will fail because what matters is what is getting adopted; please do not put more money at risk than you can afford to lose.
submitted by mr_sonic to CryptoCurrency [link] [comments]

Establishing a smart contract commercial scenario: Chainlink, Zk-Snarks and sharding technology work together to make the ultimate killer

This text was translated from Chinese, open following link in Chrome and translate to see all images:
https://bihu.com/article/1242138347
EDIT: found an English text with pictures:
https://medium.com/@rogerfeng/making-smart-contracts-work-for-business-how-chainlink-zk-snarks-sharding-finally-delivered-8f268af75ca2
Author: Feng Jie translation: Liu Sha
“The highest state of technology is to integrate into the various scenes of everyday life, to fade away from high-tech outerwear and become a part of everyday life.” – Mark Weiser
People in the future will not even think that smart contracts are "innovative." By that time, smart contracts would permeate every aspect of life, and people couldn't even imagine what the era of non-digital currency would look like.
Later historians may divide human business history into two eras, the pre-smart contract era and the post-smart contract era. After all, digital money has brought unprecedented changes to the nature and patterns of business practices in the real world. An anonymous member of the Chainlink community once said: "Smart contracts can change the DNA of the business."
Of course, like all the technological revolutions of the past, smart contracts also need to reach a "tipping point" to truly achieve large-scale applications. So we need to ask ourselves two questions:
  1. What exactly is this so-called tipping point?
  2. As of August 2019, have we reached this tipping point?
To reach the tipping point means unlocking the ultimate nirvana of business.
Tipping point We can think about this issue from the perspective of mainstream companies. Imagine what a perfect smart contract platform should look like. What characteristics should this platform have? Or what features must be possessed?
To reach the tipping point, you must establish a public chain with the following four characteristics:
  1. Privacy protection
  2. In addition to the cryptocurrency, the transaction can also be settled in mainstream legal currency and comply with the regulatory requirements of financial markets such as ISO 20022.
  3. Achieve scalability without sacrificing decentralization or security, that is, solving the "impossible triangle problem."
  4. Connect the external data under the chain, that is, solve the "prophecy problem."
Now that we have Chainlink, zk-snarks and sharding technology, we have reached this tipping point.
Next, let's explore how this ultimate nirvana is actually made. Our discussion will be mainly from the perspective of Ethereum, which is still the top smart contract platform for community size and mainstream applications.
So what about the private chain?
Before delving into it, I want to take the time to solve an unavoidable problem. The mainstream view has always believed that the private chain is a more suitable solution for the enterprise. Therefore, we first dialectically analyze the two advantages and two major drawbacks of the private chain.
Disadvantages
  1. Centralization leads to relatively lower security
It's not surprising that IBM and Maersk's blockchain freight alliances have a hard time finding customers who are willing to join. How can other freight companies be willing to let their biggest competitors (Maersk) verify their trading data? Only madmen dare to do this.
  1. The staking of the horses occupy the hills:
This problem is even more serious than centralization. John Wolpert, co-founder of the IBM blockchain, wrote an excellent article called Breaking the Barriers to Realize Security: Why Companies Should Embrace the Ethereum Public Chain, which he covered in detail in the article.
If every company builds its own private chain, it will lead to chaos in the mountains. Today's B2B ecosystem is very complex. Imagine the innumerable private chains of the world intertwined to form a huge "spider web." This is not only cost-effective, but also not scalable.
The starting point of the blockchain is to break down barriers instead of building more barriers.
"One day, one of your big buyers called you to ask if you want to join their private chain. You promised. The next day you received a call from the wholesaler to ask you the same question. Then came the supplier, freight. Business, insurance company or even bank, and each company may have several private chains! Finally you have to invest a lot of time and cost to operate dozens of blockchains every day . If there are partners to let you join them at this time The private chain, you might say "Forget it, or fax me the order!" ”—Paul Brody (Ernst & Young)
“Every time you connect two private chains through a system integrator, you have to pay a lot of money .”
Advantage
  1. Scalability: With the Ethereum public chain implementing fragmentation technology, this advantage is rapidly shrinking.
  2. Privacy protection: At this stage, the classification of public chain / private chain is actually not very accurate. The Aztec , Zether, and Nightfall protocols (both based on the zk-snarks protocol) effectively provide a "private chain model" for the Ethereum public chain, allowing it to switch between the public and private chains. Therefore, a more accurate classification should be the alliance chain and the public chain.
By 2020, the label of the public chain/private chain will gradually disappear. The public and private chains will no longer be two opposing concepts. Instead, the concept of publicly traded/private transactions and confidential contracts/open contracts is changed, and the scope of these transactions and contracts varies according to specific needs, either bilaterally or multilaterally or even publicly.
All in all, the private chain has two major drawbacks compared to the public chain. Not only that, but the two major advantages of the private chain are also rapidly disappearing.
“Technology will evolve over time, so there will be a variety of solutions to solve existing problems. Ultimately, the public-chain platform will have the same performance, scalability and data privacy as the private chain, while at the same time ensuring security and Decentralized."
Feature 1: Privacy protection (predictive machine and public chain privacy)
Enigma founder Guy Zyskind once joked in his MIT graduation thesis that smart contracts can only become commercially valuable if they become "confidential contracts." He later proposed that zk-snarks and Trusted Execution Environment (TEE) are the most promising solutions. He said nothing wrong.
What is zk-snarks ? Zk-snarks is a zero-knowledge proof mechanism (ZPK). So what is the zero-knowledge proof mechanism? In short: a zero-knowledge proof mechanism allows you to prove that you own certain information without revealing the content of the information.
Vitalik Buterin explained this concept in detail from a technical point of view in an article published in 2017. Hackernoon also wrote an excellent article explaining the concept in an easy-to-understand way with the example of a five-year-old child and Halloween candy.
What is the trusted execution environment? The trusted execution environment lets the code run on closed hardware, and
1 ) The guarantee result cannot be tampered with
2 ) Protecting absolute privacy, even hardware running code can't get confidential information.
The most well-known trusted execution environment is Intel SGX. Chainlink has established a partnership with Intel SGX after acquiring Tom Crier.
Ernst & Young released the Nightfall agreement on Github on May 31, 2019. A well-known accounting firm with a history of 100 years will choose to add privacy features to the public chain instead of developing a private chain. This is a problem.
Since then, the community has been actively developing on this basis, not only to improve the code, but also to develop a plug-and-play Truffle Box for those who are not good at writing code. Blockchain communities and businesses generally rarely collaborate, so these collaborations fully demonstrate the popularity of Nightfall.
Prior to this, two zk-snark-based Ethereum public chain privacy protocols were introduced, namely AZTEC (Consensys) and Zether (Stanford, JPMorgan Chase). An obvious trend is slowly taking shape.
In the field of oracles, Chainlink uses both zero-knowledge proof and a trusted execution environment to complement each other. Trusted execution environments guarantee data privacy, even for nodes that cannot access data (this feature is critical for bank accounts and API keys).
Chainlink is still trying to implement a trusted execution environment, and nodes can access data temporarily, so authentication services are also needed. Although the credible execution environment is almost 100% foolproof, in theory, a strong shield has a spear that can penetrate it. Therefore, the team is currently trying to run zk-snarks in a trusted execution environment (Thomas Hodges mentioned this in the 2019 Trufflecon Q&A session). The combination of the two can form a very robust and complete system. The attacker must find a way to strip all the layers of an onion at the same time to make any effective attack (and it is already difficult to peel off a layer of skin).
“Chainlink combines a trusted execution environment with zero-knowledge proof to build what we call a defense-in-depth system, which means they provide all the tools needed for smart contract developers, including trusted execution environments, multiple nodes, and Data sources, fine margins, reputation systems, asymmetric encryption, zero-knowledge proofs, WASM, and OTP+RNG, these features allow smart contract developers to adjust the confidentiality and cost of contracts based on specific budget and security needs. Machine, Chainlink and its four major application scenarios》
In the future, zk-snarks may be upgraded to zk-starks (a fully transparent zero-knowledge proof mechanism) that protects the system from quantum computer attacks. And the best thing about zk-starks is that it's more scalable than zk-snarks. In other words, it can better protect privacy, and the cost of gas will not increase.
If you want to learn more about zk-starks, you can read a popular science article written by Adam Luciano.
Feature 2: Scalability (scalability of predictive machines and public chains) To understand this problem, we can make an analogy like this:
A public chain is like a large enterprise, and every employee (ie, a node) must attend each meeting (ie, confirm each transaction). Imagine how inefficient this company is! Only customers who have a lot of money (ie gas fees) can get their requests to the forefront. And this is not the most serious problem. The most serious problem is that the more employees (ie nodes) who join the company, the harder it is for the company to function properly! In the end, the company not only failed to expand linearly, but also became smaller and smaller. Although this guarantees decentralization and security to the greatest extent, the price is completely abandoning scalability.
There are various temporary fire fighting solutions, but no one solution can completely solve this "impossible triangle problem." For example, EOS uses the DPOS mechanism (share authorization certification mechanism), where only 21 super nodes (many of which are well-known nodes) are responsible for verifying all transactions.
Sidechains (such as Bitcoin's Lightning Network and Ethereum's lightning network) guarantee scalability and decentralization at the expense of security.
So how to use the fragmentation technology to solve this problem? Let's make another analogy:
In reality, there is only one company that is not too much to ask everyone to attend all meetings, that is, small start-ups (that is, private chains that limit the number of nodes).
In most cases, large companies divide employees into thousands of teams (ie, shards), and each team's principal (ie, the certifier) ​​is responsible for reporting to the senior management (ie, the main chain). If people from different teams need to collaborate (and sometimes also), then they can collaborate by cross-shard receipts. If a new employee joins the company, the team can be re-segmented (ie re-sharding). This allows for linear expansion.
In fact, the process of developing a start-up to a large enterprise is surprisingly similar to the process of Ethereum 1.0 developing into Ethereum 2.0.
“The Ethereum 1.0 period is that several people who are alone are trying to build a world computer; and Ethereum 2.0 will really develop into a world computer.” Vitalik Buterin said in the first piece of the workshop.
Since Ethereum was not originally built on the principle of fragmentation, it takes seven steps to achieve the goal (this is a bit like the word morphing solitaire game). The first step is planned for January 3, 2020.
At the same time, developers can use many other blockchain platforms designed based on the fragmentation principle. Some platforms, including Zilliqa and Quarkchain, are already compatible with Chainlink.
If you want to see more in-depth technical analysis of shards, check out an article by Ramy Zhang.
In the field of oracles, Chainlink has the following two characteristics:
1 ) Use Schnorr threshold signatures to quickly reach consensus in a cost-effective manner. The next version of the chain only needs 16,000 gas.
2 ) We have previously discussed the need to use trusted execution environment hardware to ensure that nodes cannot access sensitive data. Since you have hardware in your hand, you can use it to do some actual computing work, so that you can properly reduce the amount of computation on the smart contract platform.
"With the SGX system (Town Crier) and zero-knowledge proof technology, the oracle can be truly reliable and confidential, so the boundaries between the oracle and the smart contract are beginning to flow... Our long-term strategy... is to let The predictor becomes the key chain of computing resources used by most smart contracts. We believe that the way to achieve this goal is to perform chain operations in the oracle to meet various computing needs, and then send the results to the smart contract."Chainlink White Paper, Section 6.3 (26 pages)
Of course, this “long-term strategy” has certain risks, unless Chainlink can implement a trusted execution environment and its service provider ecosystem can achieve a qualitative leap. However, the Chainlink team's vision is absolutely forward-looking: under-chain computing is a key factor in ensuring that blockchains are not dragged down by large amounts of IoT data.
The Internet of Things has dramatically increased the current state of big data. At present, most of the data is still generated on the software side, and it is not real-time data, and most of the data in the future will be real-time data generated on the sensor side. One of the big drawbacks of real-time data is that it increases storage pressure. For example, Coughlin Associates expects an unmanned car to generate 1G of data per second. This means that the same car will produce 3.6T data per hour!
The only viable solution is to do real-time analysis of the data, rather than storing the data first. In the Global Cloud Index: 2016-2021 Forecast and Methodology White Paper, Cisco predicts that more than 90% of data in 2021 will be analyzed in real time without storage.
That is to say, the essence of data is that it can only exist in just one instant. The nature of the blockchain is not to be modified, so the two are as incompatible as water and oil.
The solution is to analyze the raw data under the chain, extract the meaningful results and send them to the blockchain. The combination of fragmentation technology and trusted execution environment forms a new computing architecture, similar to the cloud computing-fog computing-edge computing architecture.
It should be noted here that it is good to improve computing power, but this is not the main purpose of the blockchain.
The fundamental purpose of the blockchain is not to reduce the original cost of computing and data storage. After all, technology giants such as Amazon, Microsoft, Google, Salesforce, Tencent, Alibaba, and Dropbox have built world-class cloud services. The centralized server wins high computational efficiency (but the blockchain will greatly improve the computational efficiency through fragmentation technology, and will catch up with it one day). The value of the blockchain is to reduce the cost of building trust. Nick Szabo calls it "social scalability" (this is a relative concept to the "operational" scalability we have been talking about). Vitalik Buterin also made it clear that the meaning of smart contracts is to accept small arithmetic delay penalties in exchange for a substantial reduction in "social costs."
Alex Coventry of the Chainlink team once raised the question: "We have missed many opportunities for cooperation and reciprocity because we can't confirm whether the other party will fulfill the promise?"
Is there any potential for data storage projects like Siacoin and IPFS? What about decentralized computing projects like SONM and Golem?
Siacoin 's core value proposition is not that its computing efficiency is higher than traditional cloud services. The cost of computing is required to split, repeat, and reassemble data. And companies are more capable of buying the latest and greatest hardware than individuals. Siacoin's core value proposition is to process data in an Airbnb-like mode, so management fees will be lower than traditional models. It also generates additional social value, such as flood control, privacy and security, and anti-censorship.
The same is true of Golem and SONM. Even with the most efficient protocol, it is inevitable that a small amount of delay will be imposed and fined to coordinate the hardware of different geographical locations. Therefore, under the condition that all other conditions are equal, the centralized hardware still has the advantage of faster computing speed. However, the core value proposition of the above project is to use the Airbnb-like model to reduce management costs.
We must strictly distinguish between "social scalability" and "operational scalability", and the two cannot be confused. I will explain these two concepts in detail when I discuss "Magic Bus and Lightweight Library" later.
Feature 3: Compatible with legal currency
Most mainstream companies do not regard cryptocurrencies as "real currencies." In addition, even if someone wants to use cryptocurrency for trading, it is very difficult to actually operate because of its high price volatility. I discussed the “price volatility problem” in detail in Chapters 8 and 9 of the previous article. These problems do not completely erase the existence value of cryptocurrencies, because cryptocurrencies also have many advantages that legal currency does not have. I am just emphasizing what we need to know more about the comfort zone of mainstream companies.
Chainlink acts as a universal API connector that triggers open banking payments. Chainlink is fully compliant with ISO 20022 and has established a long-term partnership with SWIFT (it is worth mentioning that SWIFT has not been updated for a long time and hopes to be updated after the SIBOS 2019 conference).
PSD2 will take effect on September 14, 2019. All banks in the EU will all comply with this new regulation by then. In other words, the bank must put all account data in the "front end" and can be called through the API. The approved third party (ie, the Chainlink node) can trigger the payment directly without the payment service provider.
Although the United States and Japan have not adopted similar laws, many banks still spontaneously promote the development of open banks. Banks open APIs to third-party developers to create new revenue streams and customer experiences that ultimately increase profitability. In addition, this will allow banks to better respond to competitors in the mobile payment and financial technology sectors in an APP-centric economic model.
As this open banking revolution continues, Chainlink will connect smart contracts with the world's major currencies (US dollar, euro, yen, etc.).
Only one external adapter is required to connect to the authenticated API. From a programming perspective, it is relatively simple to allow everyone in the community to contribute code to the code base (and thus achieve scalability). Chainlink has released adapters for PayPal and Mister Tango (European version of PayPal).
Feature 4: Data connection with the chain
Chainlink has been working on solving the "prophecy problem" and successfully succeeded on the main online line on May 30, 2019.
Chainlink has made many achievements in just a few months. Provable (formerly Oraclize) was successfully used on the Chainlink node and finally settled the debate about whether the predictor should be centralized or decentralized.
Synthetic Ether lost 37 million Ethercoins in a hack because it did not connect to Chainlink. Fortunately, the money was finally recovered and did not cause any loss. This lesson illustrates the importance of decentralized oracles.
In addition, both Oracle and Google have partnered with Chainlink to monetize their API data and create a virtuous circle to capture the market opportunities that Facebook missed.
There are new nodes coming online every week, and the network activity has been very high. The Chainlink team maintains a list of certified nodes in the documentation and Twitter releases. Twitter user CryptoSponge also set up a new development for the Tableau push update Chainlink team:
Regarding the importance of the current stage in the history of blockchain development, Brad Huston summed it up very brilliantly:
"The biggest problem with cryptocurrencies is to build bridges between cryptocurrencies, fiat currencies and big data. Chainlink is very beautifully narrowing the distance between the three. Now it can even be said: 'The bridge has been built.'"
Magic bus and lightweight library
Let's summarize what we discussed earlier. The real purpose of the blockchain is to reduce the cost of building trust and achieve "social scalability."
Therefore, according to this logic, the main application scenarios of platforms such as Ethereum 2.0 and Zilliqa should be in the B2B field. I quote a sentence I wrote in a previous article:
“My conclusion is: If the smart contract is successful, it will also succeed in the B2B field first.”
The private chain itself is self-contradictory and destined to fail. It has led to the phenomenon of occupying the hills, thus increasing the social cost, which is in opposition to B2B itself, and ultimately it is self-restraint. ”
Before the emergence of fragmentation technology, even simple games (ie, etheric cats) could not be smoothly run on the public chain, let alone dealing with complex B2B contracts and even changing commercial DNA. With the sharding technology, everything is ready.
Despite this, we can't use Ethereum 2.0 as an all-powerful platform. Just now we said that although it is a good thing to speed up the calculation, this is not the real purpose of Ethereum 2.0. And before we also said that due to the irreversible modification of the blockchain, it is not good to deal with a large number of fleeting real-time data of the Internet of Things. In other words, we must be soberly aware that Ethereum 2.0 will not replace traditional web 2.0. Instead, we should make better use of the real advantages of Ethereum 2.0:
“There is a new concept now, that is to think of the Ethereum main network as a global bus... We use the Ethereum 2.0 main network to treat various business resources as a working group on Slack: it can be easily built and integrated. And restructuring. The SAP inventory management system in your company, the dealer's JD Edwards ERP system, and the financial technology partner's tall blockchain system can seamlessly interface, eliminating the need to develop an infrastructure specifically for each partner." - John Wolper describes his ideal "magic bus"
Ethereum 2.0 should be an integration center, not a data center or computing center. It should be a library built specifically to store B2B contract terms (to be honest, even with fragmentation technology, the amount of data is large enough).
We should not expect Ethereum 2.0 to be an all-powerful platform, but rather develop it into a "lightweight library."
If we reorder the pyramid model just now, the architecture of the magic bus is obvious:
Of course, the positional relationship in the above model is not static. With the development of 5G technology, edge computing and IoT sensors, they may bypass the cloud to directly interact (or even bypass the fog end). If the collaboration between Iotex and Chainlink is successful, then the edge can interact directly with the trusted execution environment.
Time will tell if Airbnb's shared data storage and computing model can make management costs lower than the current mainstream Web 2.0 model. Time will also prove whether the market really needs anti-censorship, anti-tampering, security protection and privacy protection. Do users really care about these social values ​​and are willing to pay for them? Do they think these are just the icing on the cake or the most fundamental value?
in conclusion
Whether it is the battle between web2.0 and web3.0 or the battle between cryptocurrency and legal currency, one thing is beyond doubt:
We have reached the tipping point, and the era of smart contracts with commercial value has arrived.
In fact, the only problem at the moment is the time issue, and the main roadblocks have been basically cleared.
  1. When will Ethereum 2.0 finish these 7 stages and be officially released?
  2. When will Chainlink use a trusted execution environment on a large scale? If the cooperation between Intel SGX and Town Crier fails, what alternative plans are there? Will Chainlink communicate with other blockchain teams that plan to use a trusted execution environment (such as Dawn Song's Oasis Labs)?
At present, the main technical problems in the ecosystem have been solved, and now it is only necessary to recruit a group of enthusiastic developers to do the work of “connecting the line”.
Digital currency has changed commercial DNA, and the future is full of possibilities.
The only thing that hinders us now is our own imagination. The future is infinitely imaginative, and the future will be the world of developers. Dapps is already overwhelming. There is no doubt that we have found the ultimate nirvana.
This text was translated from Chinese, open following in Chrome and translate to see all images:
https://bihu.com/article/1242138347
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David Johnston Bitcoin and history and the future of the blockchain BITCOIN BREAKOUT HAPPENING NOW - HERE'S WHAT'S NEXT!! 3 CRAZY BTC SIGNS FLASHING Bitcoin as decentralised digital money and its monstrous monetary hunger  Manuel Andersch When To Invest In Bitcoin Cash? Bitcoin REAL Financial Crisis Hedge REVEALED! March 2020 Price Prediction & News Analysis

59% of the 18-34 age group have a positive view on Bitcoin as a financial innovation, but only 24% of those 65 and older feel that way. ... which is intended to be the front page of Bitcoin and ... The digital, or cryptocurrency, tumbled 15 percent Thursday to about $3,300 against the dollar. Bitcoin, which has had bouts of volatility in the past, has shed about a third of its value since ... The pick-up in profits comes after a rally in bitcoin, now up 60 per cent for the year against the US dollar and up 131 per cent from a trough in March, that has benefited buy-and-hold investors. The value of Bitcoin is very volatile, the number of payments that can currently be handled is very low, there are governance problems, the transaction cost involved in making a payment with ... The number of bitcoin ads appearing in major newspapers is growing. The front page of Apple Daily, a major newspaper in Hong Kong, featured a "Bitcoin will never ditch you" ad this week. Bitcoin ...

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David Johnston Bitcoin and history and the future of the blockchain

Investors and securities industry participants talk to Nicole Bullock about the lofty ambitions - and limitations - of the blockchain, the electronic ledger for bitcoin transactions, in the ... Up down up down sideways down down up up up sideways…. What is bitcoin price action? What influences the price of bitcoin? https://bmag.io BMag: We write stories that inform Follow us at: The ... Bitcoin Cash I'm not a Bitcoin Cash fan, so don't start with the comments, but for those interested, here is some analysis on Bitcoin cash that could be interesting for some of you. #crypto # ... Bitcoin Might Fail but the Blockchain is Here to Stay ... Financial Times 63,189 views. 4:36. The real value of bitcoin and crypto currency technology - The Blockchain explained - Duration: 6:16. About Bitcoin he says: "Bitcoin is a system based solely on free choice. Thus, if Bitcoin were to become the money of the 21st century, it is because humankind preferred Bitcoin’s ...

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