🤷 Opinions Masha Beetroot

EOS42 Head of Strategy David Packham: It Could Be Multiple Blockchain Models Thrive

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Blockchain is still in this discovery phase, says David Packham of EOS42
EOS42 Head of Strategy David Packham: It Could Be Multiple Blockchain Models Thrive

 

Hot sunny day in London, with its normal hustle and bustle, and I’m inside Henry’s cafe in Piccadilly. I have an interview with David Packham, Head of Strategy & Community EOS42, who’s been elusive for three days during my stay in UK. Now it’s arranged although the last moment he changed the venue.  Loud music and conversations around, glasses clinking- definitely the right place for talking about the global EOS community…

CryptoComes: What do you think of the future of EOS?

David Packham: I didn’t expect such a bumpy first month..I am happy we are where we are. I was not sure whether we would be in the top 21 for a long period of time so it’s very humbling and a huge relief for us. The team haven’t been paid in five months, I am about to get my first paycheck since January.

So yes, it’s humbling to be voted up in the top 10 right now, but it’s always challenging: with DPoS you never know where you will be. Regarding this I think these are the healthy times in the community debating in a decentralized manner- very, very complex things about the future of the network. And of course the beauty is if some people fundamentally disagree with the way the direction goes, say in governance, they can and will be able to just simply set another instance of EOS. It’s open source- so it’s not difficult to set another chain up in theory. Their big challenge will be getting the economic gravity of the community to move with them. It requires a fundamental split in creative energy. If you keep debating like we are, eventually the community should reach a form of consensus. The mainnet is always going to be king and now its established it will likely always be the most important EOSIO network of all, but there is going to be others for sure.

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Decentralized, but how?

CryptoComes: Critics often say that EOS is not, in fact, a decentralized network, but subject to control by something akin to a government. They specifically mention the recent decision by the EOS centralized body to ban transactions from the specific 27 wallet addresses. What would you respond to the critics?

David Packham: There’s a few points on that. If the system is centralized, decision making will be quick, fast and efficient and you would see no external debate. We couldn’t be less like that! You see so much continual controversy, debate and people just prevaricating between the most inane details: that’s because we are decentralized. It took us a long time to even agree the frequency of the Block Producer meetings, because you’ve got a decentralized group trying to reach consensus. So I believe we are highly decentralized. If you look at Delegated Proof of Stake, it’s decentralized but making trade offs for performance. When you look at mining pools in both Proof of Stake and Proof of Work it is far more centralised in reality; Bitcoin has got six pools, the other governance structure is the unelected core devs, they effectively run the entire Bitcoin network in a meaningful sense. Therefore our interests as elected Block Producers is a lot better in line with the token holders.

CryptoComes: You think in delegated proof of stake they can change this consensus?

David Packham:Ultimately it is governed by understanding how the real world works, in which we delegate our power. You and I in a democracy delegate our power to representatives to run the government. So in this case in EOS, the token holders delegate their power to run the network to individuals, groups- the block producers. We have very strict controls on what we are allowed to do or not. That is all found in our constitution and our code of conduct.

That is why I disagree we at least have 21 individual groups at any one time running the network. Now there is some controversy about whether or not some of those groups may be controlled by multiple parties. They are being looked into actively by the community, and if they are they will try to shut them down. This is why it’s so important to have a really involved community that care. They are looking at this and I can see some evidence of voting that makes them suspicious and they are worried about it. The community are saying we are going to try and find proof and if so try and get these BP’s taken out of the top 21.

I genuinely don’t know if that is true or not but we are in the group listening to these discussions saying yes, we need to try and find out if that is true and act if so.

Right now we have got 21 different BP’s from all around the world and another 42 paid standbys- any one of which can switch in and out the moment you as a group of token holders decide this bad actor is taking bribes or underperforming.

For example if I am sitting here with Masha right now, and Masha is giving me an envelope of money to try and behave in a certain way and it gets found out. The community would say right, your reputation is destroyed and we as a Block Producer would be gone so fast- the penalty is enormous. So it’s a powerful system in that sense as our interests are highly aligned.

Regarding the 27 accounts, they are all direct byproducts of EOS 911. What happened is that those individuals raised a case with ECAF- the default interim arbitration service - they all submitted information onto the Ethereum account that EOS42 built, which proved they can move and control the Ethereum account where the tokens were, but could not control the underlying other account and each one of those 27 accounts had escaped mysteriously by somebody lets say a hacker, potentially, hasn’t been proven yet.

What ended up happening is that ECAF, being brand new and the network brand new, is that the block producers were put in a tough position as the only elected representatives in the entire network at present. ECAF has not yet been elected, the constitution has not yet been ratified and is interim. So following the spirit of that we collectively all reached 100 percent consensus between all the block producers and all the standbys on a two hour call, and said the right thing to do is for each of the accounts to be frozen to enable ECAF to investigate. Nothing more, no judgment just enablement of the constitution to function as intended.

It has been highly controversial! It led to a lot of thought about whether or not that’s really how things should work or not. And so the community is doing what it should and is having a massive debate. Dan Larimer the chief architect of EOS has strong views, other hugely influential community members are expressing different views. We will get there, we will work out what the right constitution is and we are going to have a referendum and then we will vote on that.

Certainly amongst those accounts in question, some of the admins of the EOS 911 channel are alleged account holders that have been defrauded. One account got missed by one BP and the money was moved immediately to exchange, so they lost 3,000 EOS as a result. It shows there is strong evidence relating to those accounts. These are individuals mostly from places like Korea who registered with a fake portal.

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Governance

CryptoComes: How will you describe the EOS approach to governance, on a scale between a totalitarian state and complete anarchy?

David Packham: The best way, I think, to view EOS is it's more of a very large DAC. It’s a decentralized autonomous company in its own right. So when you put in place its governance structure, it is all hard wired, or it should be, into the code with Ricardian contracts which explain the interpretation of that into human language. So there is nothing that you and I can do, even if we were say part of the governance layer, to start making arbitrary decisions- everything needs to be constitutionally voted. Anybody can put forth an amendment to that constitution and if they get enough support for it have it voted on. So there is no sort of centralized control its decentralized governance but people look at the likes of ECAF, which looks very centralized. That actually reflects a lack of understanding of what arbitration is, and its limited role in the EOS governance and economic ecosystem.

CryptoComes: Btw this ECAF they are taking care of the same as you do at 911, for example like if there is a problem with the account, with the private keys, or they are officially the Block.one’s arbitration?

David Packham: They have nothing to do with Block.one technically. When Thomas Cox finished the draft constitution, and nominated an interim arbitration service to be created, called ECAF- that needs to be set up from scratch. Right now it doesn’t have any funding, the people working in it are working for free as volunteers and they are trying to get setup but it’s nothing to do directly with Block.one. Block.one actually deleted all the governance constitution documents in GitHub ahead of launch, it was left for those of us setting up the network to decide what we wanted to pull and restore. We ultimately as a group decided to implement the interim constitution, and decided it had been circulated widely throughout the community, debated, ratified, and agreed as best we could prior to a real referendum.

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Block.one role

CryptoComes: What is the role of Block.one now? What happens if some producers will join forces to challenge the principles ingrained by Block.one into the system?

David Packham: In theory if ,all the block producers turned hostile to Block.one, said right we are going to freeze your account so you can never move money again. Block.one would simply set up a new EOS Blockchain. Why not? Literally any,body can set one up, and with their last commercial backing and the funds they have I am sure they would pull across the economic momentum of gravity and a lot of the community with them.

It’s a hypothetical question that’s not a serious proposition, in the sense that people would never do that. You also would be able to challenge them in the constitution. Block producers cannot arbitrarily freeze an account, the rule is as soon as the constitution were enacted it would need an ECAF order or another arbitration order to freeze an account. But actually the alternative constitution proposed by Dan Larimer is that this power should not sit at the base protocol level and that it would be above at the dApp layer.

So in that vision, each app could decide “we are going to use a different arbitrator for any dispute resolution on EOS and we are not going to use ECAF.” Any customer that signs up with you has to sign the terms which agree with that. What that would mean is there is no base layer going on at all, it’s all handled in yours. Your governance can be quite different from the governance rules of another app. That’s what Daniel Larimer wants and that’s his vision, which differs quite substantially from others. It’s an interesting one, the problem with it is much of the code and support mechanisms required to support that vision do not currently exist yet. So we would have no arbitration or protections for potentially years in the interim and be equivalent to say Ethereum. The community will decide what they want in that respect, and EOS42 will honor that decision and serve the network as a Block Producer.

CryptoComes: How big is the community you are working with? How will you describe it? What are your major principles in working with your community?

David Packham: The main thing I think is very simple with regards to community: if can never lose sight of the fact that as a block producer, you literally work for the token holders. The token holders are our collective boss to serve, if you lose sight of that then you will not last very long as a block producer. You will be out of the top 21 and will become a standby or unpaid even.

CryptoComes: How many user members do you have so far in the community? Individual wallets?

I don’t actually the estimated size oof hand I am afraid.

CryptoComes: How many are involved in the your Telegram group?

David Packham: The main EOS channel has got over 65,000 in it. For EOS42 it depends if you look at EOS London or our main BP one. EOS London blurs the line with us. We haven’t got a huge, huge group because we prefer to build up the community in real life, there’s enough Telegram groups already. You know some people have got 10,000 people but half of them aren’t real community members. Ours has got about 300 or 400 but that’s fine, thats a nice number and that means the community in that are the really active ones. If you think about our meetups, we get about three-400 at EOS London events, that means quite a few of them are engaged and actively on these groups too and its nice. I am not worried about numbers, there’s more to it than that!

Crypto theft

CryptoComes: According to recent research, theft in crypto industry is booming, with the volumes stolen this year times exceeding similar numbers in 2017. What are EOS tactics on dealing with this?

David Packham: On EOS every single account potentially compromised so far, has been purely down to the the registration process. It was down to the fact that we were doing a token swap, in effect, from Ethereum on to the mainnet. So the fraud occurred off chain, it occurred because of the registration process. So no lasting effects are known, I don’t think there any new ones occuring.

What’s happening other than that is that people are losing their private keys and having accidents but that was always going to happen. To a large extent that can be in theory resolved going forward, but before that we need to confirm whether or not ECAF will be the long term arbitration service or not - we need the referendum. Hence why many EOS block producers, including EOS42, are working together building a referendum contract and interface, and making it a priority.

CryptoComes: Do you think anything can be improved in the EOS voting system? Do you think it could be more fair?

David Packham: I don’t think it can be more fair than a referendum, where its one token per vote. I think it is a pretty powerful way of representing views. Some people are concerned about whales, concerned about individuals with what they would define to be too much power. But another way to look at it is those with the most tokens are the most invested in the long term success of the network. There are few who are going to care more about the success of EOS, than those with say 10 mln tokens- you care more about its success, not less.

It’s delegated proof of stake, but at the same time you are right it’s still the one who has the stake can vote than the one who doesn’t have them. That’s the minus of it.

The guy with 10 mln tokens, has so much more money than you and I have combined.  The counter argument is they have put in all that investment, they have so much on the line, it’s not fair for them to not have a bigger say. It is directly equivalent to shares in a company. Should the person who owns $10 mln dollars in Amazon only have the same say as you, who has put down $10,000?

If you look at what EOS token is for, it buys you a percentage of the bandwidth of the computational capacity of the network as well as the ability to vote. So in effect it gives you two things: it gives you a say in how the network is run and it gives you access to the power of the network directly linked to the amount you put in. So to me that is pretty powerful as a way of saying it is fair and right, but other people may disagree.

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CryptoComes: When do you think EOS will dethrone Ethereum or it’s not on the current agenda?

David Packham: I think actually the individuals up at the top, like Vitalik and Dan Larimer, are way beyond simplistic things like EOS vs. Ethereum. I think they are true believers who are in it for the right reasons, that’s why for example Vitalik was in the EOS code base giving advice pointing out errors and things to think about right up to the EOS launch. You couldn’t see a better example of people cooperating and in it for the right reasons. They are way beyond money these guys, all of them.

I think it is fair to say they all want to see the benefits of decentralization. They are both trying different flavors of the same idea, which is they want to build a decentralized operating system and economy. No one is yet sure how best to do that. So you have to try a variety of ways, to really experiment and find out what works best. Until we try we will never know. That’s how most of the great experiments have led to discoveries. How many different chemical formulas did we try before the lightbulb. Blockchain is still in this discovery phase; we are trying different configurations and theories, and at some point we will get one that works extremely well and everyone will pursue that path. DPOS is the only scalable, proven model we have for public blockchains so far.

What we realize with Ethereum is some brilliant ideas and the concept, flaws with scalability, dispute resolution is non-existent, forking seems to be the only way they can handle and resolve. No protection comparable for current day bank accounts, if your money is stolen or you lose your private key you are left a hapless victim.

So these are problems that Ethereum is also trying to resolve by gradually upgrading the system.  In the meantime Dan Larimer’s own invention, DPOS, is taking this great idea and marrying the lessons from Bitshares and Steemit, the things that went right and wrong, to produce this third generation blockchain - EOS.

You know we may be talking again in five years time about a version 4 Blockchain project. Who knows, or it may be that EOS for example is so scalable and adaptable that unlike those before it can morph fully into a version 4 Blockchain and beyond as intended. It is designed to have every aspect of it re-coded on the move, which is something that Ethereum struggles with: you can’t do it that easily, you cannot change contracts once they are deployed. If you get one bug in them like the parity wallet hack where someone initialized the contract for the first time (as Parity forgot to do that in testing and deployment), the inadvertent hacker took ownership of the contract as the initializer of it, and then they selected to kill contract and it froze all the money in the parity wallet. Now in EOS you can actually fix that, you can go back and actually fix the problem. This is where you are getting more sophisticated models than before. It’s going to be really interesting seeing how it works.

But I do think going back to the original question these guys are not hostile to one another.

It could be multiple Blockchain models thrive and they are all part of a giant economy.

When I spoke at an EOS/Ethereum debate the core Ethereum developer and myself agreed on the same thing: we are all in this, it could very well be that EOS is London and Ethereum is NY, and they are two cities interacting economically together within the Blockchain community in the future.

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Cryptocurrencies’ Day Trading Guide

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Day trading features and specifics, how to become successful intraday trader
Cryptocurrencies’ Day Trading Guide

Day trading attracts many traders from all over as this is an opportunity to earn more money in a relatively short period of time. Unlike long-term investing, day trading means placing orders every day and close positions within 24 hours.

Day trading may be compared to a full-time job. A trader places an order within a short period of time and closes them once his targets are reached. With the development of cryptocurrency trading, this style became even more popular due to the high volatility of digital assets.

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Main features of day trading

When a trader wants to practice intraday trading, he or she needs to understand the main specifics of this trading style. They are the following:

  1. All positions should be opened and closed within one day. Most day traders prefer to hold their orders for a couple of hours. Once the signal comes, it works for a couple of hours before the momentum fades.

  2. High speed of decision making. Day traders have to think and act fast as they have not much time to place an order. If they have lost an opportunity to enter the market, they will have to wait until the next signal comes.

  3. Precise entry points. Day traders have to find the best entry points ever. This style of trading means that you don’t need to stay in the market all the time. The only thing you have to do is to find the best entry points, to place orders and to close positions once your signal is done.

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Seven pieces of advice for cryptocurrency day trading

There are several secrets and strategies of intraday trading that may be useful for every investor. We are going to cover the most important ones.

Imbalance of supply and demand

Cryptocurrency day trading means that you need to find entry points within one day and profit from them. In order to find the best entry points, one has to look for the imbalance between bulls and bears as such situations may provoke huge price changes.

In case of the rise of demand, cryptocurrency runs higher and traders have an opportunity to buy. When supply exceeds demand, cryptos decline to offer opportunities for short sellers to get profit.

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Price targets setting

For beginner crypto day traders, it is crucial to set price targets meaning you always need to know where you will jump off the market. By calculating your trading reward in advance you may set your risk level as well in order to follow risk/reward ratio, established in your trading strategy.

Let’s say you see that BTC/USD will run upwards from $6,500 for a couple of hours. Before you jump in the market, you need to find the closest resistance point on the hourly chart in order to calculate your trading potential. For example, the closest resistance on the hourly chart is at $6,350. This means that your target level will be there.

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Risk/reward ratio 1:3

Cryptocurrency day trading is similar to traditional intraday speculations meaning you best money management strategy is when you risk less and can earn more. Several beginner traders do the same mistake when they put risk/reward ratio at 1:1.

This strategy is wrong as you don’t know the percentage of your winning and losing trades in advance. By increasing the reward component in your money and risk management strategy, you simply increase your chances to be above zero in long-term even if your strategy is not the best one.

Be patient

When you look streams from exchanges or some movies on trading, you may see that speculators are always on the run and they can do many things in just one second. However, the truth is out there as a trader has to be patient and wait for a good opportunity to come before taking any decision.

Cryptocurrency traders do not trade every minute of a day as it is impossible. To tell the truth, there are few trading opportunities within 24 hours as the price may make a couple of serious movements during the day. The rest of the day, trader will do other things related to his family, official job or even hobbies.

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Don’t be afraid of trading

One of the most important thing cryptocurrency day trader needs is to fight his own fears and avoid situations when he or she is paralyzed by his own forecasting results. Crypto day trading requires speed from investors meaning you have to act in a fast manner once you have found a trading signal. If you wait too much or start thinking too much, you will simply lose the signal and will have to find another one, which may came the next day.

Do not overheat your funds

Cryptocurrency day trading is a good opportunity to earn more money. However, some traders forget about money management and place orders risking more than they can afford. This may lead to both high profits or huge losses.

Professional traders are not gamblers. They always think about how to protect their money before doing anything on the market. The first rule of a successful trader is not to earn, but to save his funds.

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Avoid investing too much in a single trade

Intraday trading is full of opportunities. There are several crypto coins that may attract your attention. However, if you invest too much into one of them, you will lose the opportunity to trade the others. In addition, risking too much per one trade leads to bigger losses as we have already mentioned.

Those are the main advices and strategies for intraday trading. However, we would like you to pay attention to some other important things that every successful trader needs to follow.

Self-discipline

We have already mentioned self-discipline in our previous articles speaking about trading psychology and other important trading features. However, for intraday cryptocurrency traders, self-discipline is the key factor of success.

What does it mean to stay self-disciplined in intraday trading? First of all, to stick to your strategy in order to avoid overtrading and placing orders when there is no clear signal.

Why do so many traders lose their intraday cryptocurrency battle? The main reason here is that they simply break their own rules. In general, most of unsuccessful trades are results of lack of discipline.

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Be ready to adapt to any situation

Short term intraday cryptocurrency trading requires adaptability from every trader and investor. There are no two trading days that are alike. This may pose big problems for those who just use their strategies according to their textbook “prescription”.

It is to mention that every strategy has its examples in the past, but when you deal with it in real-time, the result may be pretty different. Professional crypto traders always know where to use their trading strategies and where to avoid using one or another.

When there is a trend, it is better to apply trend following system while during the range fluctuations, traders need to implement special flat strategies.

Using this or that trading system does not mean that you will be in the market 24/7. Traders need to make a kind of premarket analysis meaning they have to understand whether the current conditions allow them to trade or it is better to do nothing “sitting on the hands”.

Be mentally tough

Day trading cryptocurrencies is not a simple task to do. You will have to face many issues including losses. Losing trades accompany every trader on his way to fortune. Moreover, trading cryptos every day, you will have losses almost on daily basis.

What is the main difference between successful and unsuccessful traders? It is not about winning all the trades or being unbeaten for long period of time. It is about taking more money in profit trades and losing less when the forecasts are wrong.

What does it mean for trader to be mentally tough? First of all, investor needs to squeeze every drop from a trend meaning to stay in market until the opposite signal comes. Many beginner traders attempt to close their positions once the price rises above their breakeven level. However, this approach is totally wrong as the most you take in one single trade, the better your results will be.

It may seem strange but traders are able to have stable profits even if they lose trades. Let’s say you have one loosing and one winning trade within one day. If you stick to 1:3 risk/reward ratio, you will end be earning as your losses will be less significant than profits.

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Let’s suppose you have lost $100 in your first trade but won $300 in the second. You net profit will be $200 (without trading fees naturally as we do not treat them in this article).

When trading cryptos on daily basis you need to be prepared for losing streaks as well meaning there will be times when you will close several trades without profits. This is another serious test for your mental skills as well. Only those who have ability to resist to emotions are able to overcome all the issues.

Have your own opinion

Intraday cryptocurrency traders have to rely on themselves only as they have not enough time to consult experts opinion or look for some outer signals and trading alerts. When a trader is in the beginning of his career, he always need some help coming from books, articles, videos etc. However, once he is able to create his own strategy, he is to start working independently.

To tell the truth, a trader is a lone wolf who is searching for his prize alone without any help. Best crypto traders have their own market opinion and are able to forecast quotes without paying attention at what experts will say.

Independence from others’ view is important not only for the reason that you will have to take fast decisions. When you rely on some people who do forecasting, you almost avoid to use your own strategy. This may result in having serious issues once those who provided you with signals disappear.

You should be independent not only from the outer opinion or recommendations, but from the indicators and different trading techniques as well. What does it mean? Cryptocurrency day traders should never forget that the price is the key to any analysis.

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Sometimes you can find those investors who rely on their indicators more than they rely on price. This way is wrong as only the price matters when you trade cryptos especially when you work with hourly charts.

Plan your next steps in advance

Intraday trader has to plan his steps in advance as he needs to take decisions in a very fast manner. Naturally, day trading is much harder than any other strategy as it requires more skills and full control over emotions.

Those who stick to the past, have fewer chances to win. Planning the next step in advance means you need to have a strategy that will allow you to find entry points when you finish your last trade.

KISS (Keep it stupid simple)

This is one the most popular rules among professional traders. Many beginners think that successful traders use some kind of Holy Grail strategies that are very difficult and are built on several trading tools. However, the truth is that the most profitable strategies are the simplest ones, especially for intraday crypto traders.

Successful traders use KISS method as they have lots of things to do while trading and they need to significantly simplify their systems in order to make decisions right in time and not several minutes after the signal comes.

Final words

Intraday cryptocurrency trading is not as easy as it may seem at first glance. Many beginner traders try it but they lose as they are not prepared for this rhythm of trading.

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Coinbase’s Achilles Heel: Customer Service

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In the beginning there was Coinbase and not much else...
Coinbase’s Achilles Heel: Customer Service

If you plan on going into the business of handling other people’s money, then you would better have a strong focus on customer service, because if people can’t get their money, then there will be hell to pay. I can speak from experience.

First crypto exchange

Coinbase was the first exchange that I used for cryptocurrency. It was referred to me by a friend, it was quick and easy, and most people were using it, so it was trusted. I used it for almost a year without a problem except for the Bitcoin Cash caper, that is a story for another time, until just this past week, when I made a withdraw to my bank account.

Now, let me preface the story with the following: I routinely make withdraws from my crypto wallets at Coinbase and use ACH transfers to my bank account. Since December, the time to do this has decreased from almost nine business days to one day, despite the emails saying it could take between two to four days for the transfer to complete. Therefore, I knew it would only take one day.

Transfer gone awry

I made the transfer on a Friday in the morning and I expected the money to be there in the afternoon. The afternoon came but the money did not.

I thought, well my bank is always lazy on Fridays and pending transactions never clear until Monday sometimes Tuesday, another thing to get me up on the soapbox. It was the weekend, I decided to wait it out. Monday came and went and there was nothing.

On Tuesday, I called my bank, thinking the problem was on their end; however they had no incoming transactions. The problem is coinbase. I thought to myself, great, I heard all the horror stories about their customer service. I called and was baffled that phone support does not handle issues like missing funds. When money goes missing, I am sure you want to talk to a person on the phone, am I right? I mean my transfer never arrived, I want answers and I want them now. So, I sent the email to support. To my surprise, I got an email a few hours later. It read:

Hi, Eric.

I’m very sorry for any trouble with this.

When you place a sell order or withdraw USD to a US bank account, the money usually arrives within 2-4 business days.

Again, I apologize for the trouble. Thank you for using Coinbase.

Regards,

Coinbase Support

That seemed rather copy paste. I wanted specific facts and dates. I pressed on and sent another email inquiring further. Coinbase responds, unbeknownst to me at the time it would be the last response I received:

Thank you for your message.

I sincerely apologize for this inconvenience.

Based on our records, your transaction is currently in process and it should arrive within 2-4 business [days] from the time that you have initiated the withdrawal.

Thanks for your patience.

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Poor excuse for service

So tell me something I didn’t know before? Ok, so I gave it till the end of the week and it never showed. I followed up with several emails and never received a response. Oh, I performed another transfer and it went through in one day. My money is clearly missing and Coinbase doesn’t seem to care about it one Iota.

For the time being, as Coinbase rides the wave growth they can hide behind the billion in revenue they make, but it only takes one mistake that is not rectified to lose a customer, and there are finally more alternatives to Coinbase out there. If Coinbase continues to have this terrible customer service, then it is going to lose customers to other exchanges, just as it lost me, and soon my friends, too, who stand in solidarity with me.

A word of warning

When you manage other people's’ money and you lose it, you better make good and pay it back, otherwise, you lose credibility and customers. Goodbye, Coinbase!

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🤷 Opinions Darryn Pollock

The Fight For Democracy in the Crypto Space

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Democracy, in terms of the Blockchain protocol is supposed to be a key feature, but as it stands there is more radicalism happening
The Fight For Democracy in the Crypto Space

Democracy has been a core pillar of society since the days of the ancient Greeks, and since those days it has never abated, merely adjusted and evolved. The idea that the majority have the overall say transcends all facets of life and is an important and fair governance system.

Thus, because of its ability to quash any form of centralized and unfair control, it has also become an important part of Blockchain protocols and their decentralized nature. Governance of Blockchain, especially when it comes to Proof of Work and Delegated Proof-of-Stake, is based entirely on democracy.

However, democracy is not all in Blockchain, nor in general society, as there are a few ways in which to bend this governance system, and as such, we are seeing a new movement in the Blockchain space.

Blockchain governance and its democracy is starting to become far more radical rather than more inclusive and open as the space grows. However, for the cryptocurrency communities, the desire is now for a real working democracy on the human level welded with proper machine level. People want a fair democracy and this can happen when supported on the Blockchain protocol level.

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Breaking tradition

One of the core thoughts of Francis Fukuyama in his 1992 book "The End of History and the Last Man" was that democracy was the final form of human governance and that it was easier to see a radical converting to a Democrat than vice versa. But time proved he was wrong.

But, he also added: "What we may be witnessing … is the end point of mankind's ideological evolution and the universalization of Western liberal democracy as the final form of human government,” leading us to believe that no further improvements are left to be made upon democracy.

Now, in the Blockchain space, we have seen a rapid microcosm of democracy and its evolution. Blockchains, in their original form, such as Bitcoin and its Proof-of-Work algorithm, proved a democratic standing as crypto-anarchists worked in communities.

Anyone who supported the Bitcoin network early on was given a chance to gain more Bitcoins through the PoW algorithm. People received fair rewards for being part of the network and keeping it live. A fair reward for fair effort.

This was then later done differently, but under the same principles when Dan Larimer proposed and implemented the Delegated Proof-of-Stake (dPoS) algorithm, such as in EOS. The idea behind dPoS was voting and democracy. Also a fair system.

EOS’s developers say that by delegating the responsibility for processing transactions to just 21 “block producers,” which are to be elected by the community of token holders, the system will be able to achieve thousands of transactions per second (compared with just 15 per second for rival Ethereum).

These basic principles of democracy in PoW and dPoS are enshrined in order to enact a fair system for communities to operate democratically. However, through the nine years of Blockchain being in existence, the growth of the space has led to a degeneration to radicalism, and even in the newer dPoS system, we are already seeing a movement away from democracy, counter to what Fukuyama predicted.

Importance of democracy

Blockchain’s protocol and its democracy underlying it comes from an important key feature of cryptocurrencies in general, the decentralization and the removal of centralized authorities. Thus, it is understandable why there is such an importance placed on democracy in the Blockchain protocol.

Ethereum founder, Vitalik Buterin explains:

“Over the last half-decade, each of us has, in his own way, been working on a part of an alternative solution: to find ways to harness markets and technology to radically decentralized power of all sorts and shift our reliance from authority and to formal rules.”

He further continues that, Bitcoin and other cryptocurrencies emerged directly as a reaction to the perceived excesses of the traditional financial system.

Democracy may be an essential facet of Blockchain, but it is also key as to how it works. An easy example is provided by Josh Zerlan, VP of Product Development at Butterfly Lab:

“There are thousands of miners around the world, all collectively trying to process various transactions. Although not widely utilized currently, miners have the ability to accept or reject certain transactions. They can choose to refuse to process transactions. Let’s think about that for a moment. An individual miner can choose to not process a transaction, but someone else will, therefore that individual miner’s choice doesn’t make a lot of difference. <...> But what if more than half the miners decided to stop processing transactions from an entity they disagree with? Now the choice of those miners has an impact. If more than half of the network decides something does not belong on the network, the transactions will never make it into the blockchain, effectively being ignored by the bitcoin universe.”

While the democracy in the Blockchains may be moving towards radicalization, it is important to remember why these key democratic features are prevalent and abound.

The grassroots movement and drive is there and it’s strong — projects like Telos and UCOMMUNITY fork the EOS code to create their own consensus algorithms with the objective of fair distribution and voting rights. We are going to see more and more movement in this direction.

The want and ability to have democracy

It is dangerous for those involved in the Blockchain space to become too radical and to leave out democracy as a core concept in the space. There is indeed a fight going on for democracy in blockchain, and with this fight, people are showing that they do indeed want a fair democracy and this can happen when supported on the Blockchain protocol level.

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Thomas Hughes

The Crypto Market Is Going South. Ethereum Is No Exception

Christine Lagarde stated that central banks should “consider the possibility to issue digital currency”
The Crypto Market Is Going South. Ethereum Is No Exception

Christine Lagarde, the Managing Director at the International Monetary Fund, stated during a speech at the Singapore Fintech Festival (Nov. 14) that central banks should “consider the possibility to issue digital currency.” She also mentioned that despite being “not entirely convinced” of the benefits of cryptocurrencies, there may be a use for government-backed tokens.

These Central Bank Digital Currencies (CBDCs) would aid “financial inclusion,” “security and consumer protection,” and “privacy in payments.” Whether or not this will have an effect on the current crypto market remains to be seen; in the meantime, all major digital currencies are dropping, Ether included.

Charts at a Glance

Charts at a Glance

ETH/USD was trapped between two trend lines, but now it seems like a clear direction has been chosen, at least for the short term. The pair has dropped 8 percent during the last 7 days and broke below the bullish trend line, so the next destination is most likely the support zone around 190 – 192.

If the pair reaches the mentioned support zone, I expect to see a bounce for two separate reasons: the level acted as strong support last time it was touched, and the Relative Strength Index is already below its 70 level, indicating oversold. A return above the bearish trend line would invalidate this scenario.

Support zone: 192 - 190

Resistance zone: 205 and both trend lines

Most likely scenario: drop into support followed by a push higher

Alternative scenario: break above 205 without a touch of support

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David Dinkins

Important Bitcoin Assets Owned by Individuals, Leads to Twitter War, Misinformation

There’s a troll in control of the @bitcoin Twitter handle, and nobody is sure how to deal with it.
Important Bitcoin Assets Owned by Individuals, Leads to Twitter War, Misinformation

Bitcoin’s decentralized nature is causing a serious problem: people claiming to speak for Bitcoin may not have the currency’s best interests in mind. Exhibit A is this tweet from @bitcoin:

Clearly, whoever is in control of the @bitcoin Twitter handle is a Bitcoin Cash supporter and is using the @bitcoin account as a bully pulpit from which to espouse his views. Another great example is the fact that Bitcoin.com is owned by Roger Ver, one of Bitcoin’s earliest supporters who has now abandoned the project and supports Bitcoin Cash.

Prominently featured on the Bitcoin.com website is this bit of text, in large font and bolded:

“What Happened to Bitcoin?

The Bitcoin Core (BTC) network is in trouble due to high fees and slow transaction times. Bitcoin Cash (BCH) is the upgrade that solves these problems.”

Does this sound like somebody promoting Bitcoin?

Confusion

The @bitcoin handle has apparently changed ownership many times since being created in 2011. Bitcoin news site Coindesk used to own the account, from 2012 to 2016, but claims that records of who they transferred ownership to are lost. Consequently, nobody knows - or will admit to knowing - who it is that claims to be speaking for Bitcoin. In the meantime, anti-Bitcoin tweets keep going out to @bitcoin’s 800,000 followers.

What’s a new user to think? Having Bitcoin Cash use “Bitcoin” in its name is confusing enough without additional doubts being sown in social media. But, there’s no way to assign ownership of a social media account to a decentralized entity. Some individual or other legal entity must own it, and in this case, it just happens that a Bitcoin Cash supporter controls two critical Bitcoin information portals (Bitcoin.com and @bitcoin).

Solutions difficult

The digital currency Dash is trying a new approach to ownership of network assets. Dash Core Group has long owned the Dash.org domain name and a wide range of assets that were paid for (and should be owned by) the network. However, since a legal entity had to control these assets, Dash Core Group served that purpose. It’s insufficient to say on legal paperwork that the Dash community owns a certain domain name, for instance.

However, Dash Core Group has now set up a foundation that is owned by the entire network of Dash masternodes, and has given control of all network-owned assets to that foundation. If such a structure can be duplicated by other cryptocurrency projects, it could be a valuable step in the direction of decentralization - and elimination of confusion - in digital currency.

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