The cross with centralization

The above criticism can be summed up in one word: Centralization. The criticism does not fall on deaf ears at IOTA; on the contrary, the Coo was intended from the outset as a transitional solution.

The IOTA Foundation writes in its Bitcoin news on the question of the end of the coordinator:

“The short answer is that the coordinator can and will be removed if our research team is convinced that we understand the coordinator-free tangle sufficiently. Therefore, the IOTA Foundation plans to launch a coordinator-free tesnet in the coming months. Within this Bitcoin news, various theroetic approaches will be tested to make IOTA a consistently decentralized IoT platform without scalability problems in the long run. Here is more info: Is Bitcoin News Trader a Scam? Read This Review Before You Sign Up!

One of these theoretical approaches is the introduction of a reputation system for nodes. Nodes which try to confirm invalid processes (e.g. double spending) should gradually lose influence in favour of reliable nodes with a high reputation. First tests with the Cornell researchers Walsh and Sirer Reputation System have delivered “promising results”, according to the IOTA blog. There will also be improvements in the (Markov-Chain-Monte-Carlo-)procedure, which is used to select the transactions to be confirmed.

Star images of the Bitcoin formula

IOTA sees another way to banish the Coo from the tangle for good in the “Stars” concept. Stars” should include nodes of “well-known public institutions such as governments, companies or individuals” that have a “particularly high level of trustworthiness”. These “trustworthy” nodes would then carry out reference Bitcoin formula transactions similar to the coordinator’s milestone transactions. This is also a kind of reputation system. Instead of a single one, there would be many coordinators and the user or community would have freedom of choice in the composition of the star constellations like this:

At the (not yet foreseeable) end, according to the ambitious goal of the IOTA Foundation, the tangle can be regarded as “a developing cellular automaton that isolates and finally eliminates the actions of the misbehaving nodes by employing a suitable evolutionary algorithm”.

IOTA’s ambitions are great – after all, the Tangle is to become the platform for the IoT industry. Numerous large companies have already expressed their interest, including Bosch, VW and Fujitsu. In the BTC-ECHO podcast, Alex Roos spoke with IOTA expert Tobias Zeitler about the status quo of the IOTA project, its goals and the hurdles still to be overcome.

Store digital currencies

A wallet for digital currencies such as Bitcoin, Litecoin, Ethereum Ripple & Co stores the private keys each user needs to access a Bitcoin address and receive or send credit. There are several ways to keep Bitcoins and other digital currencies safe and at the same time obtain an address.

The following options for storing digital currencies are available to the Bitcoin trader

Bitcoins are a state-of-the-art equivalent to cash and according to onlinebetrug this is not a scam. Every day, the number of companies that accept Bitcoin as a means of payment increases. In addition to knowing how Bitcoins are minined and how a Bitcoin trader transaction is executed, it is essential to understand the various ways Bitcoin can be stored.

Strictly speaking, from a technical point of view, one does not store Bitcoins, but rather stores the digital keys with which one can access a public Bitcoin address and authorize a transaction. This information about the digital keys is stored in a Bitcoin wallet. As shown above, Bitcoin Wallets can be divided into five different categories, the properties of which are described in more detail below.

Desktop Wallet for the crypto trader

Anyone who has already installed an original Bitcoin crypto trader client (Bitcoin Core Wallet) is already using a wallet – perhaps without knowing this. In addition to forwarding transactions in the crypto trader network, the software can generate a Bitcoin address to receive and send Bitcoin credit and to store the corresponding keys.

However, there are also many other desktop wallets that offer different features. MultiBit runs under Windows, Mac OS X and Linux. Hive is a Mac OS X based wallet with some unique features including an app store with access to various Bitcoin services. Some desktop wallets, on the other hand, are aimed solely at security: the provider Armory, for example, falls into exactly this category. Other wallets such as DarkWallet rely on anonymity. This wallet is a browser plugin that uses a coin mixer to exchange users’ credit balances with each other, making tracking more difficult and concealing identity more difficult.

Mobile Wallet
Desktop wallets are very impractical when it comes to paying in shops or on the street with Bitcoin. This is where mobile wallets come in. Mobile Wallets are installed as an app on the smartphone and store the private keys directly on the mobile device. This means that Bitcoins can be received and sent in a matter of seconds using a mobile phone.

Some mobile Bitcoin Wallets even support Near Field Communication (NFC) technology. The smartphone simply has to be held to the terminal and no scanned QR codes or a Bitcoin address are required.

However, all mobile wallets have one characteristic in common: they are not fully-fledged Bitcoin clients, because they would have to download the constantly growing blockchain, which is now several gigabytes in size. This would probably exceed the data volume of many mobile phone users and is therefore not suitable for the market. This is why almost all mobile wallets use Simplified Payment Verification (SPV), which only downloads a small part of the blockchain, but which is completely sufficient for a secure transaction.

The providers of Android and iOS wallets include Jaxx (Bitcoin, Ethereum Litecoin, Dash, etc.), Bread Wallet, Bitcoin Wallet, Mycelium, Xapo and Blockchain. They store the keys encrypted on the mobile phone and also create a web-based backup copy.

Ripple’s Cory Johnson: We are in competition with SWIFT

Cory Johnson, Chief Market Strategist at Ripple, was a guest at the “Yahoo Finance All Markets Summit: Crypto” last week. There he spoke in an interview, among other things, about the differentiation of the company Ripple from the XRP token. He also has a few words to say about the international payment service provider SWIFT, which he sees as Ripple’s main competitor.

Last week the “Yahoo Finance All Markets Summit: Crypto” took place in San Francisco. As the name suggests, it was supposed to be about questions about investing in crypto currencies. One of the guests present was Ripple’s Chief Market Strategist, Cory Johnson, who gave interesting insights in an interview. Ripple Cory Johnson At at Yahoo Finance crypto summit

Ripple and Bitcoin code

Johnson is annoyed that many people can’t tell the company Ripple from the token XRP and how it works. Ripple and Bitcoin code are still used synonymously by many in the cryptoscene. The XRP token is only a part of the company that is used for transactions in the network.

It draws the comparison to the US American oil company ExxonMobil. This is also not used synonymously with the term oil, even if the production of oil is one of the essential components of the business. Accordingly, Ripple is not a crypto currency, but a software company offering financial services.

The first quarter of 2018 was the best yet for Ripple. This is demonstrated by the fact that countless partnerships have been formed with other companies, banks and financial institutions. Nevertheless, it was probably the worst quarter for the XRP token in terms of price and market capitalization. This shows that companies and crypto currencies are not the same.

SWIFT as main Bitcoin code

In addition, Johnson also addresses the market situation for Bitcoin code. The SWIFT banking consortium has always been Ripple’s main competitor. The SWIFT cooperative standardizes worldwide transactions between different banks from different countries. SWIFT’s reach is many times greater than that of the network the Bitcoin code is building.

Nevertheless, the system has weak points. Contrary to its name, it is anything but “swift”. A transaction takes three to five days, with an error rate of 4 percent. The system is closer to a carrier pigeon than to a messenger service or an e-mail. Here he sees chances for the enforcement of Ripple.

With these statements he also distinguishes XRP from other crypto currencies such as Bitcoin and Ether, to which Ripple does not want to compete. Although he sees that there are Bitcoin and Ether holders who are against Ripple, he attributes this to the general envy of the crypto market. The actual use case of XRP, to function in the Ripple ecosystem, is not affected by this.

Russia wants to locate crypto-miners

According to various Russian media, the Moscow Ministry of Telecommunications and Mass Media will try to develop its own detection system for crypto miners. There is some talk of tax breaks, either increased electricity tariffs or a maximum quota of electricity that the miners in the Russian Federation are not allowed to exceed.

The Bitcoin news from the ministries are very uneven

According to Bitcoin news reports, preparations are currently underway for new bills, which will probably be submitted to the Russian parliament on 1 February. In addition, the Ministry of Telecommunications and Mass Media (Minkomsvjas) wants to identify Miner on the basis of their electricity consumption and the volume of data typical of their activities: Also the approximate extent of the mining of crypto currencies is supposed to be recognized in such a way. How this is to be technically implemented is unfortunately not explained in the publications available online. Already in October 2017 Russian regulators announced such recognition systems. With such an extraordinarily high power consumption it is not particularly difficult to uncover the miners, the Bitcoin news were announced in autumn.

According to the news agency RIA Novosti, senior employees of the Ministry of Energy have now announced that they consider the identification to be possible but also very costly. The Ministry proposed to limit the measures to those persons who are engaged in mining on a commercial scale and thus on a very large scale. There are also people who use a lot of electricity per month in other ways. The inspection of the data streams is also very time-consuming. You can’t automatically call every user of streaming services a miner just because they transfer a lot of data. As soon as the data is transmitted encrypted with a Virtual Private Network (VPN), for example, it is almost impossible to detect the miners.

What the Bitcoin formula is used for cannot be seen from the outside

There are also considerations that crypto miners will be exempt from paying taxes for two years after registration. In principle, they should not pay sales tax, but they should pay income tax after the two-year period has expired due to the increase in value of their wallets. There is also no uniform assessment of the situation with regard to the Bitcoin formula. Deputy Finance Minister Alexei Moiseev told RIA Novosti that he could see no reason for a multi-year tax break. The Ministry of Telecommunications and Mass Media currently fluctuates between a quota system on the one hand and special electricity tariffs for miners on the other. A speaker of the Bitcoin formula however slowed down the expectations on a meeting last week. So far nobody has been able to explain to him why there should be cheaper tariffs for this group of people. Within the Russian Federation, the prices were already extremely low in former times, which has strongly promoted mining there.

At the moment it remains to be seen whether at the end of the ministries’ deliberations a relief, a neutral regulation or even a kind of state blockade policy will emerge. Should the ministers agree on a blockade, this will naturally have quite strong negative effects on the market for crypto currencies.