Darryn Pollock

Bytecoin Boosts as Binance Lists, Rest of Market Edges into the Green

Bytecoin has rallied over 70 percent since being added to Binance as the majority of the market flattens out and moves slightly into the green
Bytecoin Boosts as Binance Lists, Rest of Market Edges into the Green

After consolidating by between three and nine percent across most of the top 100 coins, the market has flattened out with the majority earning small growth as the week has worn on. The biggest winner, however, has been Bytecoin which has benefitted from a successful listing on one of the biggest exchanges, Binance.

Bytecoin, designed for anonymous cash settlement, has rallied by a massive 76 percent over the last 24 hours as the frenzy grows thanks to its listing. It is up to 17th in terms of market cap and priced at $0.012 as it stands.

Big listing

Binance, the world’s second-largest exchange by trade volume, announced that it was listing the relatively obscure privacy coin Bytecoin which prompted a hearty rally. Prices are pumping over 30 percent in less than an hour. The coin, BCN, surged from $0.007 to $0.009.

The listing of Bytecoin is a big plus for the company and those wanting to invest in it, but in terms of the general market and Bytecoin’s niche, it fills an important role in terms of anonymity.

As soon as a transaction appears on the Blockchain, the address cannot be viewed by anyone and so BCN became the forefather of all of the anonymous cryptocurrencies based on this technology. The tech employs ring signatures, unlinkable transactions, and stealth addresses which all serve to keep exchanges totally private and make Bytecoin unique.

Recovery in the market

The rest of the market is mostly in the green today after the drop that happened following Sunday’s big rise. Most of the top coins have flattened out, but managed to sneak into the green, growing by less than a percent upwards of about three percent in the last 24 hours.

In the top 100 coins, all but 17 are in the green, but even those in the red are only losing small percentages with the biggest loser over 24 hours being Bitcoin Private, which may be feeling the adverse effect of a competition coin succeeding, but it is only down four percent.

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Darryn Pollock

Binance’s Exponential Rise Up the Ranks an Impressive Cryptocurrency Feat

Binance has set the precedent for success when it comes to running a cryptocurrency exchange, but how have they gotten so big, so fast?
Binance’s Exponential Rise Up the Ranks an Impressive Cryptocurrency Feat

Biance, arguably the world’s biggest cryptocurrency exchange, said back in July that it expects to make up to $1 bln in profit for 2018, a year which has been decidedly bearish. This cryptocurrency exchange is also not even two years old yet, but it has climbed the ranks to the top in quick time.

But what is it that has made this exchange such a success, especially in a bear market, and especially in a cryptocurrency space that has become so saturated and competitive in regards to exchanges?

The exchange started out on the right foot, with an innovative idea and a well-timed ICO for the Binance Coin (BNB) but from there, the growth of the company has been aided by its solid foundation. This in itself has allowed Biance to innovate and expand to new areas, including upcoming fiat-to-crypto exchanges.

It is a worthwhile exercise to look at Binance’s route to the top and discover if there is anything for other companies in the market to glean from their journey. In such a competitive market, there have to be competitors that are either looking to innovate, or potentially imitate.

Rocketing to the top

Binance was founded in early 2017 by Changpeng Zhao in China. They quickly moved to launch an ICO for a native utility token called the BNB. This was a timeous decision as July 2017 was when the ICO craze was really starting to take off and it ended up netting Binance $15 mln.

The intention with the BNB was to give its holders 50% off fees on the trading platform, which was an attractive proposition and surely one of the reasons why Binance accumulated so many users so quickly, but also why it’s token became important and embedded down the line.

It took Binance just 143 days from its launch to reach the top three cryptocurrency exchanges globally, and its growth did not slow down. At the beginning of 2018, the exchange boasted about 2 million users, but six months into this year that number swelled to 10 million.

It is for all of these reasons and this astronomical growth, that Binance is predicting its profits to top $1 bln this year.

The BNB’s role

Binance’s own token has surely been key to its growth as a company, but at the same time, the companies growth has also helped establish and expand the use of the utility token. Because it started out simply as a way in which users could lessen their fees, it was well received and attractive to new users.

The BNB thus was heavily traded, very liquid, and well distributed, all aspects that aid and help grow an exchange. Thus, as more people flocked to Binance because of the lessened fees through its token, the company grew, and the BNB expanded its reach and value.

BNB is now more than just a coupon for 50 percent, it has multiple roles on Binance, including being a voting token for Community Coin of The Month which is a way new coins can be chosen and listed on Binance, and it is being used for Binance’s LaunchPad, which aims to help raise funds for worthwhile start-ups.

A model for the future?

Binance is of course not without its faults, and it has been criticised for onboarding a number of cryptocurrencies, and also accused of charging exorbitant rates for doing so as a money making scheme to the determined of the ecosystem.

However, their story of growth — even in a quickly expanding space like Blockchain — is still impressive, and may well be setting a precedent for future exchanges to become established. Binance will face struggles down the line, especially with regards to regulation, and this is why it has already moved operations to Malta, but its foundation is already laid.

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Thomas Hughes

Blood in the Streets of Crypto City

Bitcoin is down more than 12% for the last 24 hours, reaching as low as $5,500 (and even lower on a few exchanges) at the time of writing
Blood in the Streets of Crypto City

The whole crypto market is sinking in value and dropping in volume and is being led by Bitcoin, which is down more than 12% for the last 24 hours, reaching as low as $5,500 (and even lower on a few exchanges) at the time of writing. The reasons for the drop can only be speculated, with some voices shouting “manipulation” as loud as they can.

It is unclear whether we are talking about manipulation or not, but 40% of the entire Bitcoin volume (short positions mainly) belongs to BitMex. This is huge, considering that the second exchange by volume — Bitfinex — is currently trading 3% of the entire Bitcoin volume. Weird? I would say so.

Charts at a Glance

image

BTC/USD has broken the long-term low at $5,777 and reached lows last seen in late 2017. The move was not spurred by technical reasons and at this time it is not clear what exactly triggered it or when it will end. This could be the beginning of an extended drop towards $5,000 or a good opportunity to buy now. Either way, it is clear that Bitcoin and cryptos in general are riskier than usual under these circumstances.

Strictly from a technical point of view, the Relative Strength Index is deep in oversold territory and according to price action 101, a very strong move is followed by a period of stagnation or even a bounce higher once a bottom is established. However, we don’t know if the current price is a temporary bottom or if the drop will extend further.

Support zone: 5000 as a psychological level

Resistance zone: 5777 - 5800

Most likely scenario: bounce higher after a temporary bottom is formed, followed by another drop

Alternate scenario: extended move into 5000

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Alexander Goborov

Bitcoin Not Going Anywhere: Its Computing Power as Awesome as Ever

While some may claim that Bitcoin’s reign is over, here we explain why it cannot possibly be the case
Bitcoin Not Going Anywhere: Its Computing Power as Awesome as Ever

Bitcoin’s price is now at around 4000 USD, the lowest figure in over a year, showing a sharp decline of 1500 USD only in the last three weeks. Some claim this is Bitcoin’s finale at last. They are dead wrong. And here is why.

Blockchain vs. Crypto

What must be made clear is that Bitcoin is a cryptocurrency, but more importantly, it is also a Blockchain. What’s the difference, some may ask? Well, a substantial one, in fact. While one (i.e. a crypto coin) depends on the other one (i.e. a Blockchain) for its very existence, they are not the same, and one does not necessarily imply the other.

Some companies might have their own Blockchain platforms but not have their own cryptocurrencies as such. Take Tether, for example, which is the eighth biggest cryptocurrency in the world by market cap and the second most traded one after Bitcoin. While Tether, indeed, has its own Blockchain, technically speaking, it lacks an own crypto coin in a true sense of the word, as its token USDT is a stablecoin pegged against the US dollar, which gives it a fixed value.

So, in actuality, while Tether is the biggest player on Bitfinex for all crypto to fiat exchanges, and it uses its own Blockchain to execute business, at the same time it relies not on its Blockchain but rather on the US Department of the Treasury and the Federal Reserve to provide value for its token. It is, therefore, a major Blockchain player with a hypothetical digitalized fiat currency.

In contrast, take Maker, for example, whose digital currency is the second most valuable currency in the world today after Bitcoin in terms of price. Apart from also having a USD-pegged stablecoin Dai in order to fight off volatility, Maker’s main crypto unit is its altcoin MKR, which is an independent cryptocurrency in its own right, and an expensive one at that. Be that as it may, Maker doesn’t have its own Blockchain: it is using Ethereum’s. The same goes for Electrify.Asia and its token. So, there are plenty of companies with their own cryptocurrencies that have no Blockchains of their own.

Bitcoin’s True Power Revealed

Now that we’ve made it clear that Blockchain and cryptocurrency are not one and the same, let’s look at Bitcoin again. While its current price is down, its Blockchain is as strong as ever. In other words, Bitcoin the crypto coin may be in decline, but Bitcoin the network is doing just fine. How fine exactly shows the graph below:

image

In order to move external data onto a Blockchain and form blocks, cryptographic hashing is used. It is a computational process of converting information into an arbitrary 256 character output, with one single output being equal to one hash. TH/s refers to one trillion such hashes per each second of computation. And as the graph reveals, Bitcoin’s average for this month is around 47 million trillion or 47 quintillion hashes. This is the number:

47 000 000 000 000 000 000 of 256-character hashes every single second.

This is a staggering figure by any standard. Bitcoin’s Blockchain is extraordinarily powerful, undoubtedly so. Yes, there is a drop from September’s and October’s averages, which were roughly 51 quintillion hashes per second. But Bitcoin’s hash rate today is as good as the one from this August; in fact, it is three times higher than the figure from this January when Bitcoin’s price, let’s not forget, was more or less at its all time highest. So, right now the price is down… but the power is way up.

Conclusion  

To make things even more straightforward, let’s use a simple analogy. A Blockchain can be considered a stadium where a game is played, whereas a cryptocurrency is the actual game. This game can be a game of football (coin A) or rugby (coin B) or, say, polo (coin C) or anything else athletically appropriate, and it can be played on any stadium whose size and specs fit, i.e. on any suitable Blockchain.

Likewise, a stadium can have its own team playing a game on it (own cryptocurrency), or it can be rented out to other teams for their games (e.g. external tokens on Ethereum), or there might be a game with the constant score of 1:1, such as with stablecoins… or there might even be no active game at all, in theory.

The main point here is this: Bitcoin’s game may be down at present as its team is going through some rough times due to injuries and whatnot. However, most certainly, its stadium is a humongous architectural marvel. Granted, never say never, but, in all likelihood, this gargantuan structure is not going to be demolished any time soon. Bitcoin with its vast digital infrastructure is here to stay.

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TRON Has Largest Number of Coin Hodlers Among Top 20 Ethereum-Based Projects: Study

Top 20 Ethereum-based coins are very similar to top 20 market tokens regarding their utility
TRON Has Largest Number of Coin Hodlers Among Top 20 Ethereum-Based Projects: Study

Prosphero.io analysts have conducted a research in which ERC20 tokens with the largest numbers of addresses were defined. The table below shows the top 20 projects based on the amount of wallet addresses created.

TRON takes the first place concerning token holders and is followed by OmiseGo with twice as fewer investors.

The most popular currently are Ethereum-powered projects that develop their own platforms.

An interesting fact, the top 20 ERC20 tokens are largely similar to the top 20 coins in the cryptocurrency market regarding their utility.

Infographics

TRON (TRX) and Co.

As you can see, TRON social Blockchain possesses the biggest number of addresses. This is largely thanks to its CEO and founder Justin Sun. He succeeds in promoting his project, besides, he often come up with compromising news pegs.

The coin has recently launched its mainnet and exchange of ERC20 Ethereum tokens to its own TRX coins.

The same is happening to EOS now, although, there are certain problems to do with electing block producers.

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Besides, TRON was founded in the Asian region, where people generally favor Blockchain-based social networks (e.g. STEEM). These factors have allowed it and its coin TRX to take quite a stable first place.

Coins that host own platforms

Judging by the table above, the first line of the rating based on the amount of wallet addresses is taken by the projects that are developing their own platforms (like, TRON, EOS, Golem and Bytom). Together they amount to ~40 percent of the total body of addresses.

Besides, quite popular are the projects dealing with the financial sphere (OmiseGo, 0x, TenX, SALT, Bytom)– those are around 21 percent of all the wallet addresses.

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Internet of Things (IoT)

IoT projects should be mentioned separately. In the table, you may find three such platforms- Streamr DATAcoin, Nucleus Vision and VeChain. They make around 15 percent of all the hodlers’ addresses.

ERC20 vs crypto market coins

The above-mentioned survey shows only Ethereum-powered projects. However, there are clear similarities between those and the cryptocurrency market on the whole.

In the latter, the top 20 Blockchain networks contain mostly platform projects, and then come payment systems, followed by IoT coins.

NAME

Hodlers

Category

TRON

1097828

Platforms, social networking sites

OmiseGO

597103

Foreign exchange

Streamr DATAcoin

434798

Internet of Things

EOS

330687

Platforms

Binance Coin

299746

Crypto exchange-based coins

Storj

243386

Cloud solutions

Gifto

116528

Social networks

Golem

99135

Platforms, data processing

eosDAC

97095

Decentralized autonomous communities

Nucleus Vision

75522

Internet of Things

VeChain

70495

Internet of Things, logistics networks

Loopring

69015

Cross-Blockchain operations, crypto exchange-based coins

Status

67236

Marketplaces

Basic Atten...

64650

Web browser

0x

61576

Foreign exchange

FunFair

59627

Lotteries and casinos

TenX

58987

Foreign exchange

SALT

56961

Loans

Bytom

56792

Platforms, finance

Augur

56240

Market forecasts

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Wikicoin George Shnurenko

Bitcoin 51% Attack: How It Works, How Much Bitcoin 51 Attack Costs

📚 Wikicoin
51% attack Bitcoin occurs when more than half of the hash rate decides to verify certain transactions leaving others unverified
Bitcoin 51% Attack: How It Works, How Much Bitcoin 51 Attack Costs

With cryptocurrencies that use Proof of Work for transactions, the setup of the node is such that priority is given to the Blockchain network which has the most blocks. Having the most block also loosely translates into having the most hashing power so anyone with such power can exploit it to manipulate transactions. How is the Bitcoin 51 percent attack even possible? Let’s find out.

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What is a Bitcoin 51 Attack?

A 51 percent attack is said to be imminent when an individual (not likely) or a group of people join forces to control more than 50 percent of the mining power of a blockchain network. The security of Bitcoin is hinged on different miners putting in an effort towards verifying and completing transactions on a shared ledger. This decentralized ledger is known as the Blockchain.

51 percent attack on Bitcoin occurs when the entity with more than half of the hash rate then decides to verify certain transactions on the Blockchain network and leaves others unverified. This also allows them to spend their coins (confirm their transactions) more than once. This occurrence during a 51 percent Bitcoin attack is known as double spending.

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What is the current cost of a 51% attack?

Knowing the benefits of this kind of power, it is quite difficult to carry out. In fact, the variables involved can get very complex but don’t worry, we’ll simplify it for you. You should also note that the more expensive the attack is, the more secure the Blockchain network is perceived to be from a 51 percent attack.

What Factors Affect the Cost of a 51 Attack on Bitcoin?

Some of the factors to consider are mentioned below.

  1. The network hash rate in GH/s

  2. The hash rate of the hardware

  3. The power consumption of the hardware

  4. The electricity cost per day

  5. How much it costs to cool the hardware

  6. How difficult it is to mine normally

  7. The reward obtained from mining

  8. The cost of hardware and other components used to mine the coins

  9. The disparity between the cost of mining and the market price

  10. The location where mining occurs

  11. The cost of maintenance

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The cost of a Bitcoin 51% attack

Bitcoin remains the largest and most popular cryptocurrency at the moment. Valued currently at $6,000 with a market cap of about 131.83 bln, you can understand what there is to gain when you successfully get hold of 51 percent control.

The hash rate is currently about six exahashes per seconds. Considering the most efficient ASIC miner with a hash rate of about 13,000 GHS (using the SHA-256 algorithm) being sold for about $2,100, an attacker will require about 500,000 hardware units and this will amount to about $1,005,000,000. When we factor in the cost of electricity and cooling daily, this figure rises to $1,006,000,000.

The cost of Ethereum 51% attack

As the second largest cryptocurrency with a market capitalization of about $60 bln, crypto enthusiasts believe that it has the potential to usurp Bitcoin and become the next best cryptocurrency in the market.

It has a network hash rate of about 77 GH/s and the Radeon RX480 seems to be the best option for mining. It costs $199 with a hash rate of about 0.025 GH/s. purchasing just three mln units should suffice to gain 51 percent share of the Ethereum network and this will cost $616,000,000. Including the cost of electricity and cooling, it will approximately be $617,000,000.

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How to reduce the risk of Bitcoin 51% Attack

The 51 percent attack on Bitcoin is, in no way, an assurance. Having 51 percent computing power doesn’t guarantee that you’ll be able to commit any fraudulent activity. However, we still need to put in work to prevent this from happening.

Questions concerning Bitcoin 51 attack by the government shouldn’t arise as there’s no real threat from the government apart from the lack of regulation. This doesn’t gainsay the need for 51 percent attack Bitcoin protection. Here are some of the available ways to mitigate the attack.

  1. There should be a way limit the size of mining pools within the Blockchain network

  2. Using a Proof-of-Stake consensus rather than a Proof-of-Work consensus will help

  3. Interchain linking

  4. Building coins using other networks such as the ERC20

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Prior Bitcoin 51% attacks

In 2014, Ghash.io was one of the pools with several individual miners on the Blockchain miners and this provided them with immense control and power. For a while, they had close to 42 percent of the network’s hashing power and they even got worryingly close to 50 percent.

This sparked a debate about the relevance of mining pools and the amount of power they wield. People began to call for plans to decentralize the Blockchain network and this was met with stiff opposition since the concept of mining in a pool offered far more advantages than disadvantages.

More recently, the Bitcoin Gold team announced that a Bitcoin 51 percent attack ensued. An attacker got access to 51 percent of the network’s computing power and this caused the attacker to tamper with the blockchain and then reverse transactions.

These attackers went on to make deposits at cryptocurrency exchanges and then offered the Bitcoin Gold for bitcoin and other altcoins. They then withdrew the cash after a while. After doing this, they caused the blockchain to accept these false blocks that they created and then they reversed their deposits.

It was reported that the total amount the attacker sent is about $18 mln.

Real but preventable

Is the Bitcoin 51 percent  attack real? Yes! Is it possible? Absolutely? Is it costly? Definitely? However, it is also preventable. Also, considering the cost of hacking these more renowned currencies such as Bitcoin and Ethereum, it is unlikely that you’ll be losing your digital assets to any of the impending 51 percent Bitcoin attack.

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