🤷 Opinions Cyril Gilson

Ex-Central Banker on Crypto: “There is no Limits to Where This is Going to Go”

Opinions
“The way we think about money and earning a living is going to change”
Ex-Central Banker on Crypto: “There is no Limits to Where This is Going to Go”

Ex-central banker turned cryptocurrency aficionado and leader, Eugene Etsebeth gives us an inclusive insight into the psychological types and the mechanics of a Central Bank operations, fintech scene and its influence on governments in Africa and how ICO’s model is changing.  

The business unit head for Central Banks, ACH and Payments at Sybrin, Eugene Etsebeth worked at the South African Reserve Bank (SARB) where he founded the Virtual Currencies and Distributed Ledger Technology working group.

card

Eugene Etsebeth: About a year ago I left the South African Reserve Bank where I have become quite prominent as someone who understood cryptocurrency from a conceptual and technical point of view. You know the central bank was a very policy-driven institution and it has a lot of academics or researchers and auditor types. I was trying to bring a technological perspective to their thinking. When I was immersing myself in cryptocurrency I felt that they are missing a large piece. It was the technological piece but also it came from a slightly decentralized, almost libertarian thinking, giving them a different point of view.

So that’s what I brought to them out of my passion and interest in that space. South African Reserve Bank is a certain organism typical for most central banks. I mean you have banking supervision, which looks after the banking resources, and those are more auditors types. Then you’ve got your research, which are more your economic people and academics. Then in South Africa, we have exchange control so they do financial surveillance where there is not a free flow of money: those are the investigator types. Then you have national payments where they are mostly focusing on high value and low-value payments in the financial market, they almost ran a software or a system.

💼 Related Article
Vinnie Lingham’s Civic, How it Fares Now: Past-ICO Review
🔥 Hot
6 months
256
Vinnie Lingham’s Civic, How it Fares Now: Past-ICO Review

So there are many different types of people, and I managed to bring them all together. I chaired the Virtual Currencies and Distributed Ledger Technology working group, the committee where we started to influence, talk to, or make an offering to the government.

Then out of that we also got involved in building some consortiums in the financial space. We as a central bank managed to find some developers interested in Ethereum and we worked with consultants to start contributing to smart contracts. A couple of years ago we played around with moving money between banks and the Central Bank on the Ethereum Blockchain.

Fast forward to now, and I was offered to lead the cryptocurrency slot at Sybrin, my current company. Their business is predominately in Africa, we have over 250 customers mainly banks, and we also run complete clearing houses of Zambia, Kenya, and Lesotho. We started to engage with some partners for cross-border remittances using existing cryptocurrencies.

Among other things, I was approached to do an ICO for a gambling entity based in Africa but ultimately I realized that to become an advisor in an ICO means moving to an unstable territory because all of it would be my own branch. I didn’t know how it’s gonna go so I pulled out of that.

Now we are gonna start engaging and looking into the Lightning Network.

The second tier framework that sits on top of Blockchains for me is very compelling, it almost works like the Internet protocol.

I think there is a lot of concern on how is that going to get market share or get people to use another wallet or another system, but I think market opening will come over time and that we will move over to Lightning Network type of behavior and we will start building applications on a second tier.

💼 Related Article
Wikicoin: What is the Lightning Network?
🔥 Hot
9 months 1 week
256
Wikicoin: What is the Lightning Network?

Cyril Gilson: Is South Africa showing the rest of Africa the headway of fintech?

Fintech in South Africa

EE: The fintech scene in South Africa isn’t as strong as it looks. There are a lot of early startups, but I wouldn’t put it in the same category as for instance Israel or the West Coast. There is a big drive in millenials, like everywhere in the world, to be the owner of their own destiny. If they are computer programming literate they will probably take a risk early on. The fintech scene is prominent in South Africa, but I wouldn’t say it’s extremely large.

The central bank has created a fintech unit, but it has only three staff members, yet they are being more open into regulatory innovation apps. That’s the one thing that the startups are missing in the world: they are out, they are young, they have great ideas, but their regulatory and ecosystem knowledge is just missing. This is the cool piece that can help the ecosystem develop.

I am trying to think of examples. For me in the cryptocurrency space you have Luno. They have an exchange offering in South Africa, they started up and running about four years ago, and they have done very well. They are actually now based in London and have offerings in Singapore. So in the cryptocurrency space there is a little bit of movement. There are people engaging in crypto, probably as much as other developed countries.

💼 Related Article
UBS Head Praises Blockchain, Calling It “Almost a Must” For Business
🔥 Hot
5 months 4 weeks
256
 UBS Head Praises Blockchain, Calling It “Almost a Must” For Business

African dimension

CG: How about in terms of South Africa taking the rest of Africa along?

EE: I would say if there are any initiatives to take other countries along they are probably well concealed because everyone is trying to just look after their own house. I was in Rwanda recently, there I went to the innovation hub, where it’s a very big focus in Kigali to build both software and hardware innovation labs.

It’s almost a strategic decision by President Kagame to focus on cryptocurrencies and Blockchains.

There they are doing it very much on their own. I went there on a business trip, I went to go visit, but I would like to extend a hand in the community, but that’s more of goodwill rather than a national imperative.

There are national bodies, like the committee of central bank governors, that meets in Africa and they will talk about fintech and IT but that is just one element. It’s not organic.

💼 Related Article
Ripple’s David Schwartz: What Bitcoin and Ethereum Should Do to Catch Up With Ripple
🔥 Hot
6 months 3 weeks
256
Ripple’s David Schwartz: What Bitcoin and Ethereum Should Do to Catch Up With Ripple

CG: Where would you put South Africa on a scale between Switzerland and China in terms of crypto regulation?

EE: Our position paper that came out in 2014 from the central bank wasn’t very helpful. It said its at your own risk and its a wait and see. That is still honestly the position.

Although when I look at these fancy maps of where its regulated and where its not, somehow South Africa is regulated it looks like because we have an exchange that its regulated, but on the outside, it’s slightly more just allowed to happen. We also have the added concern of exchange control which is unlike other companies. You aren’t allowed to just move money from cross-border, there is a lot of surveillance.

So to go back, I would say as a signal from the market, a big company called Sygnia they want to start a cryptocurrency exchange. They are picking up the correct signals from the regulator to make an investment in that regard. You know the one before, Luno, they took a risk. They were engaging a lot with the regulator early on but they couldn’t get any commitment from our KYC body called FICA.

They got quite far but they eventually got backtracked and it was at your own risk. We still are at that stage, although the central bank is making suggestions and names.

For instance, they say they will call them crypto tokens. I don’t know what that really means.

It just means they recognize it as a crypto token, that’s the language they will use and they don’t recognize it as a currency. It doesn’t really say much other than that they categorized it using their own categorization.

💼 Related Article
NEM’s Latin America Head: “In the Next Bullish Wave We will Surely See NEM in First Positions”
🔥 Hot
5 months 3 weeks
256
NEM’s Latin America Head: “In the Next Bullish Wave We will Surely See NEM in First Positions”

ICO thinking

CG: Speaking about ICOs, there was a hype last year and they promised to disrupt finance, but it seems like now they are becoming more similar to what financing does in terms of equity they needed even before the presale or in many other aspects. Do you expect some new model changing the existing ICO model in the near future?

EE: You mean in response to the regulatory clampdown?

CG: Also maybe it will come out of some natural development, even from the inside the techniques are getting more and more oriented to mainstream...

EE: I am very excited about the ICO developments. I think it’s like cryptocurrency itself, the Bitcoins and some of the altcoins around them, it’s already a working use case that has billions of dollars of uptake. I think it’s a great future model. I think perhaps a greater responsibility should be placed on the people who start to randomize. I don’t like licenses, but you should know who they are, they should register in some shape or form because it’s a bit too scammy at the moment.

I think as a model it frees up liquidity a lot earlier, you can almost do an ICO within a day. You can create a method to raise an ICO in a short amount of time. You can offer in an exchange using a very simple protocol, the ERC20 protocol. I think for me its a case of that if a VC is doing it in a traditional sense, they better start moving quickly to an ICO thinking.

💼 Related Article
CryptoKitties Co-Founder Benny Giang: Spend a Week Understanding Why Crypto Matters to You
🔥 Hot
6 months 1 week
256
CryptoKitties Co-Founder Benny Giang: Spend a Week Understanding Why Crypto Matters to You

Leadership required

CG: Do you expect more industries taking on the ICO model?

EE: I think there is no limits to where this is going to go. I think the human imagination is confined by what we know now, but it will become for our children, it will become more obvious how it’s matured. For instance, even here at this conference people are starting to offer ICOs and token sales for celebrities. And why not, anyone who adds value that you interact with, these things can be monetized.

I mean, money is really a form of communication, it’s almost a language. We have only known what we have known and know we have been introduced to a new way of money. I think this is going to change the way we think about money, how we earn money and how we earn a living.

💼 Related Article
CryptoKitties Co-Founder Benny Giang: Spend a Week Understanding Why Crypto Matters to You
🔥 Hot
6 months 1 week
256
CryptoKitties Co-Founder Benny Giang: Spend a Week Understanding Why Crypto Matters to You

CG: Yeah but you are talking about cryptocurrencies being appealing to individuals rather than institutions and governments, the later would change in a slower manner. If at all - there are still this mass media stereotypes of all these crypto being scams.

EE: I think this is where it becomes very important for each individual to analyze the market, to read deeply. It’s so much easier now for you to make a prediction of what lies ahead of us. It may not be right, but we almost empower it because knowledge is so free.

We know as much or more than the previous controllers of knowledge. So I think that is going to set people apart, is by how they can predict and shape the future because I think people are complacent by thinking they have more knowledge. That’s certainly not the case.

I wouldn’t put too much emphasis on someone who has gotten to place in government by virtue of a bureaucratic career and who doesn’t know what the real reason may be why the organization was founded 100 years ago because it’s always morphing and changing. So too it might change not only growing bigger but it could grow smaller. It’s gonna take some courageous leadership going forward.

💼 Related Article
Generational Crypto-Investment Gap: Why Warren Buffett Just Doesn’t Get It
🔥 Hot
6 months 2 weeks
256
Generational Crypto-Investment Gap: Why Warren Buffett Just Doesn’t Get It

🤷 Opinions
views
👓 Recommended articles
🤷 Opinions Cyril Gilson

Liberland’s Vít Jedlička: “We Are Building Our Civilization On the Boats”

Opinions
President of Liberland speaks on how to get to his country and what is to expect
Liberland’s Vít Jedlička: “We Are Building Our Civilization On the Boats”

Vít Jedlička is a Czech politician more known as President of Liberland, a libertarian nation located in Europe, between Serbia and Croatia. Somewhat close ideologically to the views of American politician Ron Paul, Jedlička is always on the go, promoting his country based on cryptocurrency. I met Jedlička at the Blockshow conference in Berlin, where we talked about his country’s progress and how one can participate.

Cyril Gilson: Could you describe your country geographically?

Vít Jedlička: Liberland was founded between Croatia and Serbia on a plot of land which is seven square kilometers. So we are three times larger than Monaco for example. It was purposely made there because this place was not occupied by any other country for more than 26 years. Since the split of Yugoslavia, neither Croatia nor Serbia claimed this piece of land which was a very interesting spot. We saw a very great opportunity in that. So we went there, we stuck the flag, we declared the creation of a new country. Of course, we are having some issues with our neighbors, but I think we will be able to resolve them sooner or later.

💼 Related Article
CryptoTrader’s Ran NeuNer on Greed, Crypto Market Cap and Getting Off Blockchain
🔥 Hot
7 months 1 week
256
CryptoTrader’s Ran NeuNer on Greed, Crypto Market Cap and Getting Off Blockchain

CG: You bought the land, right?

VJ: No, no, you cannot buy it. It was not claimed or owned by anybody, that was the special thing about it. So we claimed it. You cannot actually build a country by buying land, it doesn’t work like that. Especially if you are doing it from scratch it’s almost impossible. That someone is going to sell you a piece of land with a sovereignty. Historically there is no such precedent that will be done, at least in modern history let’s call it that way.

💼 Related Article
Ripple’s David Schwartz: What Bitcoin and Ethereum Should Do to Catch Up With Ripple
🔥 Hot
6 months 3 weeks
256
Ripple’s David Schwartz: What Bitcoin and Ethereum Should Do to Catch Up With Ripple

Cyril Gilson: Tell me what the latest news is in your country, what is going on?

Vít Jedlička: We are growing enormously! We just reached, I think, 520,000 people that are registered and interested for citizenship, with almost 250,000 people eligible citizens out of the group, which is a nice development in the three years since we started. It means the idea is viable, and actually we are growing faster than we were growing at the beginning.

So it’s kind of cool to have an almost half million people nation in support of the creation of the freest country on the planet. That’s something we know works, it attracts prosperity, it attracts capital and makes people happy and prosperous when they are living in a free environment.

We wanted to build a freest society.

💼 Related Article
Federico Pistono: Bitcoin’s Power Structure is Very Robust, Altcoins Are Test Bed
🔥 Hot
7 months
256
 Federico Pistono: Bitcoin’s Power Structure is Very Robust, Altcoins Are Test Bed

CG: Some people think that it’s possible, with all this money, all these billions that are cryptocurrency enthusiasts and investors have they could just buy out. There are ideas circulating, let's buy an island, like in Puerto Rico for instance, some people from the community bought huge pieces of land, not only land like the airport I think. They bought some part of the seaport.

Vít Jedlička: But still they are not claiming sovereignty. The thing is we are sovereign from the very beginning.

CG: What’s currently on this piece of land besides the flag?

Vít Jedlička: We actually do have some issue with Croatia. When they announced we will renovate the buildings, they came with bulldozers and leveled them down. We do have some issues in that sense. But on the other hand we are building whatever we can on the river next to Liberland, so can host up to 200 people now for different events. So we are strongly present in the area, with some 10 boats now that are in the area that we can use. We had a very nice celebration of the anniversary.

So, for now, we are building our civilization on the boats next to Liberland.

It has two advantages. First of all, we don't have to deal with the problem of flooding, which comes three from time to time, because everything is on the boats already. Second of all, we don’t have to deal with the police of Croatia because they respect the neutrality of Liberland waters. They cannot do anything as long as we are basically on the river.

💼 Related Article
Next Facebook will be Federation of Decentralized Networks: Bill Ottman of Minds.com
🔥 Hot
6 months 1 week
256
Next Facebook will be Federation of Decentralized Networks: Bill Ottman of Minds.com

CG: Do you do tours? How can one get to Liberland?

Vít Jedlička: Yeah! Easy, the best way is to take Air Liberland from Prague and it will fly you directly next to Liberland on one of the green fields. Then you can take a boat tour.

CG: Do you do guided tours or just inviting people?

Vít Jedlička: Usually we do conferences, so its bigger groups of people coming together, they are of course getting some program pre-planned. But guided tours will be available also at some point. Right now, there is this bigger boat, which was sponsored by our supporters, where we can host 100-150 people easily. There will be a restaurant, there is already a small space, there will be co-working space which we will launch in one month from now. There will be plenty of things that people can do there already.

💼 Related Article
Adult Industry on Blockchain: Leah Callon-Butler Changes State of Play
🔥 Hot
7 months 3 weeks
256
Adult Industry on Blockchain: Leah Callon-Butler Changes State of Play

CG: What does your community do besides gatherings, what other projects?

Vít Jedlička: For example, we have mutual recognition with Somaliland. Right now as we speak I had a meeting with one of our representatives, our Dubai representative, that is pushing things forward in Somaliland. He is also very strong there because he is responsible for infrastructure development there. They are the country that recognized us first.

We have our embassy there now in the capital there, in Hargeisa. We are working now because we signed the memorandum of understanding with their government, we are working on energy, on Blockchain technologies.

For example, housing, with this governments. We are planning a big second official visit with Somaliland to push things forward.

There is great potential to push the country forward especially in the area of tokenizing everything and improving their basic lighting system.

There is where we see great value that we can add to the whole country and push it forward a couple years ahead. Ahead of even other existing countries because it’s easy to implement things in these countries from scratch.

💼 Related Article
What is Trading and Cryptocurrency Trading, Their Main Features
🔥 Hot
6 months 1 week
256
 What is Trading and Cryptocurrency Trading, Their Main Features

CG: Do you expect more countries like this appearing in the future?

Vít Jedlička: Yeah, we have a couple more state visits lined up with other regularly recognized countries this year.

CG: Where?

Vít Jedlička: I cannot tell you because this is a sensitive issue, but I think we can successfully repeat the cooperation that we started with Somaliland with many other countries. Especially Africa and Central America I can tell you that.

We will be the first country that whenever you pay taxes you get something back. Everyone that has contributed to Liberland so far got merits for it. We will also have that as a tradable token. So people will pay taxes and they be able to benefit from it in the future. So it’s not just a voluntary tax system it's a tax which rewards people that pay taxes. These tokens will be good for voting, so you will be able to make decisions with them. I think it’s an interesting concept.

On the other hand, we have a decentralized justice system. We also want to be a leader in that sense. I think that can attract a lot of new people to Liberland.

But also it can help a lot of people that for example cannot settle disputes for many years in other countries they can come to Liberland and have a much faster solution for their issues.

💼 Related Article
Bitcoin Price Volatility Explained
🔥 Hot
6 months 1 week
256
Bitcoin Price Volatility Explained

🤷 Opinions
views
👓 Recommended articles
Wikicoin Eric Eissler

10 Reasons Why You Should Avoid Investing in Bitcoin and Other Cryptocurrencies

📚 Wikicoin
Volatility, scams, legality: those are just a few issues that face investors in Bitcoin and altcoins. Remember, invest only what you can afford to lose.
10 Reasons Why You Should Avoid Investing in Bitcoin and Other Cryptocurrencies

Bitcoin and other altcoins have been making big headlines over the past few years, laced with stories about incredible gains and devastating losses. It’s the losses that are a hard pill to swallow. Many people ask, is Ethereum a good investment or Bitcoin? Let’s look at the top 10 reasons why you should not invest in Bitcoin and other cryptos. Remember, only invest what you can afford to lose.  

1. Volatility

Bitcoin and altcoins are very volatile, meaning that you could lose your shirt and your trousers if you buy high and sell low. In December 2017, Bitcoin hit its highest price at about $20,000. Fast forward to April 2018, when one Bitcoin is worth about $6,700, a 66.5 percent decrease in value. If you bought in the hype of December 2017, you would be out about $14,000 and for many people, that’s big money.

2. Security

In many countries of the world, banks are backed by the government. In the US the FDIC will ensure your bank account up to $250,000. Many exchanges do not insure your funds in crypto. If they are hacked and your proceeds are lost, you just lost all your money, unless the exchange can reimburse affected users.

3. Value or lack thereof

Bitcoin and cryptos are not backed by anything except belief. But then again, fiat currencies are backed only by the belief in the government that controls it, but at least cash is accepted everywhere. Crytpo derives its so-called wealth from mathematic formulae that are only understood by few.

4. Legality

Crypto is still very new, especially to governments. They are not sure how to regulate it or how to tax it. In some countries, there is a call to have it banned. Imagine being vested heavily in crypto and then finding out it is banned. How can you get your money back? Will you face fines and penalties for owning it? It’s not safe to own in a country that is about to place a ban on crypto.

5. Environmentally unfriendly

The power required to run mining rigs draws so much electricity, that it has become an environmental issue, that consumes valuable resources, pollutes the earth and even disrupts time. In China, Bitcoin mining is estimated to use up to four gigawatts of electricity, equivalent to three nuclear reactors' production levels.

6. Scams

Nothing is worse than being scammed out of your hard-earned cash. Scams and Ponzi schemes abound on the Internet with fake exchanges, fake ICOs, and other ways to steal your money. Whatever seems like an amazing way to double, triple, or quadruple your money in a short time, it probably is. You might also face long withdrawal periods to get your gains out of a rigged system. These are all part of Bitcoin investment scams and should be avoided.

7. No understanding of what crypto is

Many people ask if they should invest in Ether because it is not Bitcoin. Yes, it has a different function other than a store of value, but what makes it different is that it has smart contracts which are fuel and executed by “gas” another sub-set currency of Ethereum. Confused yet? As the old adage goes, don’t invest in something you don’t understand. “Can I invest in Ethereum?” you might ask, and sure you can, but don’t do it unless you understand it. More about Ethereum.

8. Decentralization: who do you trust?

Would you give your money to some guy on the street, who is touting a Bitcoin investment plan? I doubt it. Then why would you place your money into a system that has no central authority to regulate the inner workings of your investment and where your money is going? Could a state-backed cryptocurrency be the answer?

9. Anonymous or not

While Bitcoin is supposed to be anonymous, wallets are transparent. For some types of sales, especially in real estate, your funds need to be verified, it is a bit tricky to do with Bitcoin. Also, the US government is working with a firm to try to identify the individuals who may owe capital gains taxes on sales of Bitcoin. If the government can find you, then the promise of anonymity is false. Better not to get caught up in this trap.

10. Use on the dark web

The dark web is a place where all sorts of online crime take place, such as selling drugs, information, human trafficking, etc. Since Bitcoin is an incorruptible ledger system, that coin could be traced back to illegal dealings and might connect you to a crime: dirty money in other words.

Wikicoin
views
👓 Recommended articles
Alexander Goborov

ICO Monthly Totals in 2018: USD

June gathers almost 6 billion USD in ICO funds
ICO Monthly Totals in 2018: USD

ICO stands for Initial Coin Offering, a term which is heard pretty much non-stop today in the fast-paced world of cryptocurrency. In many ways, ICO is very similar to the older term IPO (Initial Public Offering), in which members of the public are offered to purchase shares of a company. Accordingly, ICOs are essentially a form of crowdfunding needed to allocate enough monetary resources in order to support and secure a new crypto unit release.

The first cryptocurrency to use this method of funding was Mastercoin in 2013, followed by Ethereum in 2014, and then Waves in 2016. Alas, the ICO scene is shrouded in scandal with some crypto minds allegedly fleeing their investors with stuffed pockets; however, billions of dollars are still being raised every month by new, legitimate crypto players.

The graph below shows what the ICO situation is like right now. The year started with January gathering almost 2 billion US dollars in ICO funds; March saw over 4 billion; and June, this year’s record so far (and likely to remain so), saw close to 6 billion dollars in funding.

After the subsequent wane in the late summer and early autumn, October has gathered around 350 million US dollars in its first ten days. Let’s wait and see how this crypto year wraps up as Christmas is fast approaching.

ICO Total 2018

 

views
👓 Recommended articles
🤷 Opinions Katya Michaels

Facebook Token: Can the Media Giant Disrupt Itself? Expert Opinion

Opinions
Facebook’s flirtation with Blockchain may drive mass adoption, but would that be enough to fix everything that’s wrong with the platform?
Facebook Token: Can the Media Giant Disrupt Itself? Expert Opinion

Facebook has been facing a great deal of pressure recently, both from the public and the US government, regarding its exploitation of user data. In the aftermath of Mark Zuckerberg’s Congressional hearing, decentralized platforms have been seizing the opportunity to capitalize on Facebook’s failures and deceptions, highlighting the advantages of storing personal data on the Blockchain.

Friday’s news of a possible Facebook token launch may have a dramatic effect on the scenario of centralized social media disruption. One of the major issues faced by Blockchain startups and decentralized platforms is the rate of adoption – and if Facebook can beat potential competitors to the punch, it could retain the social media hegemony that decentralized network supporters hope to dissolve.

A rising tide lifts all boats

Some members of the community reacted to the news with enthusiasm. Mick Hagen, CEO and Founder of Mainframe, a decentralized communications protocol that has recently been in the spotlight with ambitious and creative airdrops throughout Asia, believes Facebook’s access to a two billion audience will promote worldwide exposure to cryptocurrency and Blockchain technology. Hagen commented on Facebook’s move toward tokenization:

This is a really exciting development. It further validates that blockchain technology is here to stay. They are disrupting themselves before someone else – it's smart... This will bring a lot of new movement and momentum. A rising tide lifts all boats – this move from Facebook will help the entire ecosystem grow.

💼 Related Article
Vinny Lingham On Bitcoin Future and Next Crypto Star: Exclusive to CryptoComes
🔥 Hot
7 months 3 weeks
256
Vinny Lingham On Bitcoin Future and Next Crypto Star: Exclusive to CryptoComes

Not even Facebook can deny the power of decentralization

Others are more cautious, given Facebook’s history with user data and the fundamental differences between decentralized and centralized networks. Bill Ottman, CEO and Co-creator of Minds.com, a crypto social network that has been a harbor for disillusioned Facebook and Twitter users since 2015, is doubtful that Facebook can adopt Blockchain in its true sense.

Facebook's blockchain application will only have any potential value if it is fully free and open source software (which it really can't be unless Facebook open sources all of their code), has fair token economics and exists on a truly decentralized blockchain as opposed to a more centralized one. In reality, blockchain itself will never fix Facebook's deep underlying unethical practices. A total corporate and techno overhaul would be required, and even that can't fully undo the damage they've already caused.

At the same time, Ottman recognizes that Facebook’s move to get onboard with Blockchain shows the growing power of free software and the decentralization movement.

At the end of the day there's room for a diversity of dApps and the best will inevitably rise to the top.

Two roads diverged

If Facebook could give its two billion users the advantages of a true decentralized Blockchain economy on a platform that they are already using, it might have a chance of beating decentralized social media at its own game and fueling worldwide adoption of the technology.

On the other hand, it may turn out to be a case of “teaching an old dog new tricks,” or worse – “a wolf in sheep’s clothing,” adding to the misunderstanding of and disillusionment with Blockchain technology by the public. Only time will tell which scenario will come to be realized.

💼 Related Article
Past ICO Review: Aeternity For All Eternity?
🔥 Hot
7 months 1 week
256
Past ICO Review: Aeternity For All Eternity?

🤷 Opinions
views
👓 Recommended articles
🤷 Opinions Katya Michaels

EOS Security Vulnerabilities: David Moss of Block.one Responds to 360 Report

Opinions
The claims made by Qihoo 360’s Vulcan team regarding EOS security may be exaggerated and unsupported
EOS Security Vulnerabilities: David Moss of Block.one Responds to 360 Report

The opinions expressed in this article are strictly David Moss’s own and not to be interpreted as speaking on the behalf of Block.one or any other entity.

As the planned June release of EOSIO 1.0 approaches, expectations and tensions are heating up.

Most recently, Monday’s news of possible security vulnerabilities detected by Chinese Internet security giant Qihoo 360 elicited strong responses from EOS supporters and opponents alike.

According to the Weibo post published by Qihoo 360 on Monday, high-risk security vulnerabilities in the EOS platform could enable remote attacks through the deployment of arbitrary code and insertion of malicious smart contracts into new blocks.

Such a security breach may give the attacker full control of the network’s nodes, affecting thousands of computers and accounts.

💼 Related Article
Past ICO Review: EOS, an ICO Success Story
🔥 Hot
7 months 4 weeks
256
Past ICO Review: EOS, an ICO Success Story

The discovery of the security issues was made by Qihoo 360’s Vulcan team, and the wording of the report seems to suggest close collaboration by the Chinese security company with EOS to resolve these issues ahead of the EOSIO launch, but this may not be the case.

David Moss, senior vice president of Tech Operations at Block.one, the open source software publisher responsible for the EOSIO launch, provided comment to CryptoComes on the Vulcan findings

“The allegations were greatly exaggerated by Vulcan 360, as was their involvement with Block.one. They are only to want publicity for themselves and to create the impression they are working with Block.one. They are not. They also have no documentation to back up any claim they made.”

As always, investors and developers are responsible for doing due diligence when it comes to platform security.

The crypto media environment is as susceptible as mainstream media, if not more, to conflicting reports, sensationalism and news cycles used as marketing tools.

The release of EOSIO software has been one of the most eagerly expected events in the crypto community and the next few weeks are certain to put increased pressure on the EOS team to provide commentary on arising questions.

🤷 Opinions
views
👓 Recommended articles