🤷 Opinions Katya Michaels

The Society of the Spectacle Interrupted: How Blockchain Can Set Theater on Fire

Opinions
Online presence is a commodity, but whose? Blockchain is to bring the justice back
The Society of the Spectacle Interrupted: How Blockchain Can Set Theater on Fire
Contents

Thought provoking entertainment based on alternative history and science fiction is enjoying somewhat of a renaissance, with video platforms like Netflix and Hulu releasing entire seasons of new series what seems like every month. Aside from aspiring to and, arguably, in some cases succeeding with, intriguing premises and smart scripts, these modern depictions of imaginary realities often feature the obligatory mind-altering twist ending.

The twist ending boasts an impressive cinematic history– from the Statue of Liberty in Planet of the Apes to Kevin Spacey’s feet in the final scenes of The Usual Suspects and Bruce Willis’s bloody shirt in The Sixth Sense, just a little bit of contradictory information can reveal exactly how much we’ve been taking for granted all along and turn our understanding of the circumstances upside down. Given our enjoyment of edifying perspective flips in fictional works, it’s ironic how rarely we take the trouble to adjust and rethink perspectives in our daily lives.

The most pervasive alternative reality of modern life, the virtual space of social media and Internet transactions, demands a critical look that is long overdue. It’s time to examine where we really are, trace the garden path that led us here and envisions solutions that will work in the context of our new-found awareness.

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The other place

The New Yorker cartoon “On the Internet, nobody knows you’re a dog” was published in the summer of 1993, when barely anyone had daily access to the web, but it turned out to be an uncanny portent of the age of online dating, Internet profiles and digital fraud.

The Internet discovered and filled a need for venturing beyond the reality of one’s life to explore situations and identities that would be otherwise inaccessible. Our online lives became both a reflection and a distortion of real lives, a space with its own rules, a world within a world– a heterotopia, as defined by philosopher Michel Foucault in the 1960s.

In Foucault’s vision, a healthy society would have room for many heterotopias, providing a means of exploring perspectives and experiences that differ from the dominant reality, as well as a way to escape authoritarianism. However, as a representation of alternative, transgressive, contradictory or transforming values, a heterotopia can become both a utopian vision and a dystopian perversion.

So what are the rules of the Internet heterotopia in which we spend so much of our time? What are its governing principles and economic realities? Most importantly, how does it now affect our real spaces?

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The infinite scroll

In another throwback to the pre-Facebook era, a 2002 commercial of a high-speed Internet provider features a web surfer who, due to the superior download speeds offered by the advertiser, reaches “the end of the Internet” because he has “seen everything there is to see.” Obviously, the punchline would fall flat now, because the amount of new content contributed by online users on a daily basis is staggering.

Human beings have a natural inclination to take pride in their achievements and to share important events with their social circle, but the real driver of user-generated content is the validation provided by the community’s response. In this respect, the world of social media seemed to be a forum for self-expression unlike anything that existed before– an addictive, infinite experience that was offered to us free of charge.

The consumer or the consumed?

We jumped at the opportunity to make our opinions heard and our existence recognized, contributing to the immense accumulation of visual and textual data about ourselves and our closest connections. In 1967, French philosopher Guy Debord’s work The Society of the Spectacle expressed concern that genuine activities of life were being supplanted by the spectacle– a space where human relationships are mediated by an endless mass of images that preclude real experiences and thwart critical thinking.

One of his observations, “All that was once directly lived has become mere representation,” is such a compelling critique of today’s Facebook and Instagram culture, that it’s difficult to believe he was writing these words half a century ago.

As experiences were taken out of real spaces and deposited into the heterotopia of the Internet, they became commodities– and as these commodities were fetishized, they came to govern the consumers of the content rather than being governed by them.

Where there are commodities, there are profits and who are the beneficiaries? Not the producers of the commodified content, as it turns out.

The users’ experiences and the community’s engagement with those experiences have been commoditized and monetized by the spectacle’s platforms– until recently, without the users’ awareness. Instead of being an escape from repression, the heterotopia of social media revealed itself as a labor camp.

We thought our online presence gave us a way to protest the machine peacefully– instead, our resources have been feeding its furnaces. As we are using online services, the products of our social activities are consumed by third parties. The camera zooms out to show that the users are actually the workers, pulling at the harness of the spectacle engine while transfixed with the imagery in their phones. It’s a blockbuster-worthy perspective flip– we should be paying attention.

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Interrupting the spectacle

As revelations of privacy violations by major social networks and commercial platforms come to light, user response seems underwhelming. Many are still unaware of the scope of commoditization of personal data, and others feel that the costs of transitioning away from existing online interaction models is too high.

Even the trigger that usually moves people to action, the realization that they are quite literally being swindled, seems weak in the face of the spectacle’s power.

Debord believed that the only way to interrupt the flow of the spectacle was by using stronger spectacular images– situations that would bring about a profound disruption of the existing processes of life, politics, economics and creativity. Perhaps Blockchain technology can be that disruptor– a way to give content ownership back to the users. Although the society of the spectacle may not be entirely interrupted, the alienation it perpetuates may be healed by refocusing on the true value of individual contributions to the community and redistributing compensation where it’s due.

Foucault’s heterotopias are necessary for a diverse and liberated society, as they provide refreshing contexts for our interactions in real spaces. We have seen how the internet’s transfiguration from a heterotopia to a dystopia has soured our belief in human dignity and progress.

It’s our responsibility to give some thought to the ways Blockchain technology– transparent, secure and based on a belief of fair and equal participation– can shift the Internet community toward a utopian state.

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Darryn Pollock

What Happened in September in the Cryptoverse?: Global Overview and Regulatory Headlines

September showed a lot of intriguing developments in the city space with regards to global changes and regulatory movements.
What Happened in September in the Cryptoverse?: Global Overview and Regulatory Headlines
Contents

September saw a few major occurrences across the Cryptocurrency universe in terms of its global impact and overview, as well as in regards to regulatory headlines. But September will probably be remembered as the month after the SEC denied a couple of ETF applications and kept the rest of the ecosystem on tenterhooks with regards to this product.

For this reason, September was a bearish month with Bitcoin’s price dropping substantially in the early parts of the month, and even Ethereum hitting a new low for 2018. However, there were some positives in other countries has Iran accepted cryptocurrency mining as a legitimate industry and the Winklevoss twins launched the Gemini Dollar.

Starting with a crash

On Sept. 5, after Bitcoin had recovered from the news of delayed and denied ETFs, the cryptocurrency market suddenly and rapidly plummeted. It was unknown as to what catalyzed this downturn, but there were a few theories thrown about.

At first, it was believed that Goldman Sachs’ decision about rolling back a trading desk affected the markets, as reported by multiple headlines. However, that was more an issue of coincidental timing as the Wall Street bank even denied their influence would have such an effect.

The lows emanating from this crash went into effect Ethereum hard. The second largest digital currency by market cap was overtaken twice by XRP as its price dropped substantially. Ethereum’s loss in terms of price was attributed to the bearish market as ICOs on the Blockchain decided to sell off their assets to stem the bleed.

Across the globe

There were a few positives across the globe for cryptocurrencies, such as in Iran, a country looking to build its own cryptocurrency to avoid sanctions. The Iranian government decided that cryptocurrency mining would be a legitimate industry in the middle east.

Additionally, India, a country with a chequered past when it comes to cryptocurrencies, decided to send officials to the US, Japan and Switzerland in order to study cryptocurrencies and ICOs further. This comes after India banned businesses using cryptocurrencies without out much more thorough research earlier in the year.

South Korea was also in the news in a positive way for Blockchain as the government started up a partnership with the aim to train over 40 Blockchain professionals. South Korea’s relationship with cryptocurrency has gone through a lot this year and while it is stringent in its regulation, it is also forward thinking for its potential.

Tezos was also back in the news after it had a massive breakdown following its ICO when the heads of the Blockchain company began infighting, threatening to scupper the entire operation. However, in September, they finally announced that the mainnet of their program was launched.

Regulatory steps in September

While the SEC did not make too many big steps in its approach to a Bitcoin-based ETF following decisions in July and August, it did seek further clarity and comment on VanEck’s ETF, a product which is being well regarded as a potential success with the SEC.

However, the SEC did also suspend trading of two crypto-based securities. Citing “confusion” among investors, the SEC issued a notice that these two ETNs — Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) — would cease trading until September 20.

Keeping in line with regulators though, the Winklevoss twins bounced back from their denial of an ETF by launching the Gemini Dollar. This was touted as a fully regulated and compliant ‘stablecoin’ which is pegged to the US dollar.

Impact of Telegram

The Gemini dollar also piqued some interesting chatter across Telegram with Sept. 10 seeing a spike in interest for this event. On that date and the following day, Gemini Dollar talk matched about four percent of talk about Bitcoin across Telegram, and its ripples were felt through until Sept. 21.

Tezos also saw a lot of chatter across Telegram in September as its mainnet launch approached. On Sept. 15, 18, and 21, the talk of Tezos reached between 7 and 12 percent of all talk of Bitcoin across the messaging app.

Tron Tracker

Tron is a project that a lot of people have been keeping their eye on as the long and complicated process keeps unwinding and making more and more strides. A big advancement for Tron, just heading into September, was the launch of its Tron Virtual Machine which it touted as a new chapter for the dApp ecosystem.

Hunters & Followers

In terms of the Blockchain space and the major cryptocurrencies, there was a definite and obvious game of hunting and following that took place right near the summit of the market cap. Ethereum had a very poor September and lost a lot of its price gains in its new 2018 low.

As Ethereum slunk away in terms of its price, it also lost a lot of its market dominance, and respectively, it lost its second-spot to Ripple on a few occasions. Ripple announced its own xRapid program and because of that saw some good gains even over a bearish month.

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SiaCoin Price Prediction- How Much Will SC Cost in 2018\20\25?

In this article, you will find our most up-to-date SiaCoin price predictions for the upcoming years
SiaCoin Price Prediction- How Much Will SC Cost in 2018\20\25?
Contents

 

What is SiaCoin?

SiaCoin is commonly known as the Airbnb of cloud storage. It allows renting unused hardware space to other users who, if permitted, are able to store their data on your computer. The Sia network ensures privacy by encrypting all the files that are stored on the host’s hardware. Only the uploader is able to access the information with the help of a private key.
 

What is Siacoin

Unlike cloud services from such tech giants like Google and Amazon, SiaCoin puts emphasis on decentralization, so you are not obliged to rely on an individual company. Moreover, these mainstream cloud storage providers could get widely expensive, so SiaCoin is definitely a more affordable option.   

So far, the network fails to offer a slew of features like Google Drive, Amazon S3 or Dropbox, but as more developers get on board, SiaCoin will get more advanced. Subsequently, price predictions for SiaCoin are also expected to improve.    

SiaCoin price prediction 2018

It is currently the 41st largest cryptocurrency on the market with a market cap of around $235 mln. The SiaCoin price is currently at $0.0065, which is a bit underwhelming for investors. Nearly in one week, the cryptocurrency lost almost 22 percent of its value. Here’s a table that vividly shows how the price of SiaCoin has changed over the past few months.

Date

Price High ($)

May 08

0.027050

Jun 08

0.018454

Jul 08

0.011093

Aug 08

0.007207

However, some pundits are certain that the coin has the potential to hit $1 as early as in 2018. While this may sound like an extremely bold SiaCoin price prediction, let’s break down the reasons why investors might still want to bet on SiaCoin (SC).

  1. A threat to incumbent data storing services. As mentioned above, the Sia network has plenty of potential to replace the likes of Dropbox due to its extremely low fees. Even John McAfee paid attention to SIA back in December 2018 calling it ‘unique.’ However, the infamous crypto enthusiasts were still iffy about the coin’s investment potential.

  2. SiaCoin usability. As the network expands, its native token’s value is also expected to proportionally increase, which definitely fuels SiaCoin future price predictions.  

  3. Growing convertibility. SiaCoin has already been listed on the majority of big exchanges where it can be easily bought with other cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). For example, the coin saw a 20 percent spike in price following the Binance listing in June.  

  4. Price stability. Despite some recent bearish trends that may negatively impact SiaCoin price prediction for 2018, the currency’s overall performance instills confidence. It might have experienced significant volatility (as you can see on the graph below), but it’s not so critical as compared to some other altcoins.

SiaCoin price prediction 2018

SiaCoin price prediction 2020

In order to make some adequate predictions for such an extended period, we have to take a look at SiaCoin roadmap for the upcoming years. With speed being one of the main issues, the company is going to reach the level of Amazon S3 as early as in 2018. Moreover, new data distribution features, which are currently in the pipeline, are going to be implemented. By 2020, the company is planning to become a big player on the cloud storage market elbowing out Amazon and other major competitors. So, can this inflate SiaCoin 2018 price predictions?

Of course, this roadmap sounds too ambitious, but if the team keeps working at the same pace, it may reach some of its development goals, which will subsequently push the SiaCoin price further. While facing such heavyweights as Amazon and Google may be tough, SiaCoin barely has any competition on the distributed storage market apart from Storj, so this project has pretty good timing. In fact, Storj utilizes a rather similar technology, but its hefty price tag (on par with the aforementioned mainstream cloud services) will definitely be a turn-off when there is a much cheaper alternative.

However, one cannot make a SiaCoin price prediction for 2020 while isolating it from the whole crypto market. As mentioned above, you need Bitcoin, Ethereum or any other big altcoin to buy SiaCoin. Since the majority of altcoins usually reflect Bitcoin’s bullish/bearish trends, the king of crypto and the cryptocurrency industry as a whole will have an enormous impact on the future price of SiaCoin. Taking into account the possibility of mainstream crypto adoption in the nearest future, SiaCoin price predictions 2025 may look completely different.   

SiaCoin mining profitability

Back in June, SiaCoin appeared in the headlines because of hackers who gained access to thousands of computers in Chinese cafes in order to mine this currency. Remarkably enough, these shenanigans conveniently coincided with a gargantuan 400 percent spike in SiaCoin price– it went from $0.002 to $0.01 in just two months. Of course, nobody could foresee it in SiaCoin price predictions 2017.   

Just like Bitcoin or Ethereum, you can also earn SiaCoin by mining it with the help of special hardware. However, David Vorick, the leading developer behind SiaCoin, is pretty skeptical about the profitability of mining claiming that manufacturers are the only ones who profit off expensive ASIC mining chips. Furthermore, he claims that there are secret ASICs that are not revealed to the general public. It’s worth mentioning that Vorick has his own mining company Obelisk that is threatened such a near-monopoly like Bitmain.

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Top 5 Great Teams In Crypto

Crypto companies that keep the public informed and deliver a product as promised, are more successful than companies, which do not meet these standards
Top 5 Great Teams In Crypto
Contents

While the crypto market may be down, the spirits of the some the brightest and best teams behind the tokens are not. They are determined to produce a product that is quality and provide the end user with an unparalleled level of service and support. The following are some of the top teams in crypto based on their dedication to the product and most importantly to the end user, who ultimately decides the fate of one token or another. To trade or not to trade, that is the question.

ShapeShift

Turning one cryptocurrency into another, without divulging personal information is the premise of ShapeShift. The company, founded and launched in 2013, has been successfully fulfilling its mission as an anonymous exchange. It is headed up by a team of professionals, of whom is none other than Erik Voorhees, who is famous for his work in the cryptosphere in companies such Coinapult, BitInstant, and former owner of Satoshi Dice, a gambling company that he later sold to an anonymous investor for 126,315 Bitcoins. The rest of the team is chock-full of professionals driving the company forward.

Relex

Relex is a Blockchain-enabled technology which offers real estate development opportunities. It differentiates the investor pool and speeds up the time between funding and building projects. Furthermore, it results in quick and efficient funding in real estate projects of the highest quality. Relex gives investors an opportunity to have a collection of real estate developments at their disposal. This allows the quick distribution of capital to projects that deserve it. Keith Hilden is the CEO and founder of the company, he has been involved in the crypto community since 2011, a very early point on the crypto timeline. He has been very influential in the community as well as developing and promoting.

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Nano

Unlike conventional Blockchains used in many other cryptocurrencies, Nano uses a block-lattice structure. Each account has its own Blockchain(account-chain), equivalent to the account’s transaction/balance history. Each account-chain can only be updated by the account’s owner; this allows each account-chain to be updated immediately and asynchronously to the rest of the block-lattice, resulting in quick transactions. Colin LaMahieu is the founder and developer of Nano. He has been a software developer for the past 10 years. During that time, he founded RaiBlocks, which is now known as Nano. Nano has top-notch customer support and is constantly providing updates on its website.

Ambrosus

Ambrosus is building a decentralized, Blockchain-powered IoT-based logistical supply chain network platform that will enable secure and frictionless dialogue between sensors, distributed ledgers and databases to optimize supply chain visibility and quality assurance. The network will serve industries such as agricultural, medical, commodities, and high-value products.

Angel Versetti is the founder and leader of Ambrosus. He previously worked at the United Nations, World Resources Forum, Bloomberg and was trained at Google. He was the youngest project leader and lead published author at the UN. Through his partnership Versetti & Co he led investments in startups, social projects and early cryptocurrencies. Angel is a recognized expert and frequent speaker on innovation, technology and economic development.

Substratum

The Substratum Network is a worldwide collection of nodes that securely deliver content without the need of a VPN or Tor. In return for volunteering your PC as a decentralized host, you will be rewarded with the Substratum tokens (Substrate). Justin Tabb is the CEO and founder of the Substratum. Furthermore, he is founder of OverridePro, a web-development company delivering digital solutions to big-name clients including Apple, Facebook, HP, and many others. In working with companies like these, he knows that communication and delivering a product that performs is the key to success and having a strong reputation in a cut-throat market.

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Unconfirmed Bitcoin Transactions: Why They Happen, and What You Can Do About Them

📚 Wikicoin
Baffled by an unconfirmed Bitcoin transaction? Learn what unconfirmed Bitcoin transactions are and how unconfirmed Bitcoin transactions can be dealt with
Unconfirmed Bitcoin Transactions: Why They Happen, and What You Can Do About Them
Contents

200k unconfirmed transactions

The issue of unconfirmed transactions came to a head in December 2017 during the peak of the cryptocurrency craze. Due to the double whammy of overloaded exchanges and constant DDoS attacks, a whopping number of 200,000 Bitcoin transactions remained unconfirmed for over a day.
image
Notably, the Ethereum network had similar problems after CryptoKitties caused havoc with its Mempool. Although, as it later turned out, this was an extremely frontloaded success, and the killer dApp is yet to appear on the horizon.

A more recent example of a rapid increase in the level of network congestion was related to the Bithumb hack in June. Most probably, the delays and the increased fees were connected to the South Korea-based exchange cleaning out its wallets.    

The reasons behind ‘stuck’ transactions

Bitcoin is a cryptocurrency that is based on the Proof-of-Work (PoW) algorithm. All Bitcoin transactions are conducted with the help of cryptocurrency mining.

Once you press that ‘Send’ button in any wallet application, the transaction is going to a memory pool (or simply ‘mempool’ before being recorded on a public ledger — only miners are capable of doing this).   

However, for a given payment to be processed successfully, it has to be confirmed by a miner who gets a block reward for each confirmation. One block represents a set of data pertaining to transactions that are cherry-picked by miners (or ‘nodes’). Until confirmed, it remains in the mempool.

Here’s the catch — blocks contain only a limited number of transactions. The transaction throughput of the Bitcoin network remains one of the most controversial issues in the crypto space, and that was one of the main reason why ‘Bitcoin Jesus’ Roger Ver eventually jumped ship and became an ardent proponent of Bitcoin Cash. Earlier, Ver claimed that those who called for an increased blocksize simply didn’t have a say in the Bitcoin community. Ethereum, on the other hand, had this issue resolved by adjusting the blocksize to the network volume. That is why the Ethereum network was able to handle a three-times-bigger transaction volume back in February.    

As of now, the blocksize is limited to 1 MB (this limit was introduced by none other than Satoshi Nakamoto).
image
However, there was also a place for an anomaly in the form of a 2 MB block.

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Helping you understand mempool

As mentioned above, mempool is a shortening which stands for a ‘memory pool’. Long story short, this is the place where all unconfirmed transactions remain in limbo. The pool unites all the computers that are connected to the Bitcoin Network with the help of Bitcoin mining software. All payments that are yet to be confirmed are stored in the RAM of a given device. If the mempool size is inching closer to occupying the whole RAM capacity, the node is able to automatically discard all pending requests with lower fees.

It is worth pointing out that the mempool is not a queue — different nodes have their own set of transactions that to be confirmed, and they are clearly incentivized to pick transactions that have the highest mining fees.     

The more popular BTC gets, the bigger is the size of the mempool. Subsequently, it drives the fees through the roof since it’s getting increasingly difficult for miners to handle everything.

Would a better hardware make a difference? No. The modus operandi of the Bitcoin network presupposes that each block is mined every ten minutes (or nearly so), and the same timeframe would remain in place even if every miner had a chance to be equipped with super powerful hardware.

In order to get all the insights into the current state of the mempool, one simply has to visit the website of a German software engineer Jochen Hoenicke: it displays all current Bitcoin fees along with the current mempool size.
image
The most obvious way to get to the top of the mempool and get your money transfer confirmed is to pay a higher fee. During the Bitcoin boom in December, some users would have to pay a jaw-dropping 40 percent fee in order to send a single payment. This sparked a huge debate in the Bitcoin community, with some miners popping bottles of champagne (their revenue skyrocketed along with the fees), but others were deeply concerned that high fees may take a toll on Bitcoin’s acceptance in retail or online stores.   

  1. Compressing multiple payments in a single transaction (thus reducing their size)

  2. Do not send your payments during the time of day when the Bitcoin network usually experiences the highest level of congestion

  3. Join the Roger Ver crowd, and switch to any other altcoin. Litcoin, Bitcoin Cash, and other top 10 entire have faster payments and lower fees, but there is a roadblock in the form of poor merchant adoption

On the right, you can see the delay in minutes that shows how long you have to wait to get your transaction processed. Subsequently, if you don’t pay any fees, your payment will take an infinite amount of time in order to be confirmed (well, let’s be honest — it will never be confirmed). If you can see the ‘Confirmed’ label, it clearly means that the transaction was processed successfully (and it becomes irreversible).    

How many confirmations do you need?

It actually depends on the size of your payment. Here’s a table which clearly illustrates that:

The size of payment

The number of confirmations  

<$1,000

One single confirmation will seal the deal

$1,000-$10,000

Such a sum of payment usually requires about three confirmations

$10,000 - $1,000,000

A transaction that is this hefty will need to be confirmed at least six times before funds are deposited to the recipient’s wallet.

> $1,000,000

Crypto bulls will have to go through a whopping number of 50-60 confirmations before getting their millions, which is fair enough.   


NB! The particular number of confirmations also depends on the exchange of your choice. For instance, Coinbase, the most popular fiat-to-crypto exchange in the world, requires three confirmations before any payment is completed.   

On top of that, there is a direct link between confirmations and the digital asset of your choice. Speaking of Coinbase, all transactions conducted in ETH, ETC, as well as recently added ZRX and USDC, need 50 confirmations.     

Dealing with transactions that remain unconfirmed: our ultimate guide  

Before taking any further steps, you have to check whether your transaction is confirmed or not. Once your Bitcoins have been successfully sent to a recipient’s wallet, a transaction ID will be generated.     

Pick any Blockchain explorer (for instance, Blockchain.info) in order to see all the relevant information pertaining to your transaction.

If your transaction remains in limbo for a prolonged period of time, there are three ways to find a way out of this predicament:

  1. Continue waiting for your confirmation (it may up to a week for your transaction to get confirmed).

  2. Alternatively, you can simply sit and wait until your transaction expires after being dropped from the mempool.

  3. Lastly, one can also replace an already existing transaction through Replace-By-Fee.    

Replace-By-Fee (RBF) is the process of creating the same transaction with a higher fee if your previous one didn’t get confirmed. Notably, Satoshi was the one who came up with this idea buy later he decided to shelve the fee replacement feature. Later, it made a comeback with Bitcoin Core 0.12+.

Still, this practice gets constantly slammed by the BTC community due to the fact that allegedly destroys trust in transactions that remain in the mempool. The thing is, one can use this feature voluntarily: the sender can easily disable it, so there is no need to be concerned about trust issues. It’s a convenient way to keep the fees at bay if you are not in a hurry to receive your crypto.

NB! Uninitiated Bitcoin users should refrain from canceling unconfirmed Bitcoin payments in such a way!

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Cancelling an unconfirmed Bitcoin transaction

One should keep in mind that all BTC transactions are irreversible (that why you should check all transaction information extra carefully). With that being said, it is impossible to cancel your Bitcoin transaction since there is no single centralized authority that presides over them.

Double spending is yet another viable option, but keep in mining that the lion’s share of cryptocurrency wallet has an inbuilt mechanism to prevent it. In fact, BTC is supposed to be the very first digital currency that has managed to solve the double spending problem. Forged money is a huge problem worldwide with $600 bln in U.S. currency being fake! The Bitcoin network prevents this with the help of cryptographic techniques. When it comes to unconfirmed transfers, however, there is a loophole for those who want to double spend. The revelation was made by Reddit user Peter Todd who proved that unconfirmed Bitcoin transactions are not safe due to some differences in mining software.    

Coinbase exchange embraces CPFP

Child-Pays-for-Parent (something that reminds of a welfare program) is actually an example of one of the solutions to the great Bitcoin scalability problem.

Even crypto behemoth Coinbase recently made an announcement about using the CPFP protocol to ‘rescue’ transactions that get stuck unconfirmed in the mempool due to fluctuating transaction fees.

CPFP allows a receiver to broadcast the same transaction but with a different fee, thus propelling low-fee transactions to the top of the mempool. At Coinbase, all stuck payments are carried out with the help of the CPFP protocol, effectively tackling one of the most debatable issues on the Bitcoin network.
image
The difference between RBF and CPFP presupposed that in the latter case miners — as the name of the protocol implies — confirm a parent transaction. Rational-thinking miners have to confirm a cheaper transaction in order to include a hefty one in their block.     

The bottom line is that RBF is a viable option for those who want to confirm their transaction faster by increasing the amount of the fee. Meanwhile, CPFP is more suitable for a sender who fails to persuade the miner to pay a transaction fee instead of him.

Things are getting better for BTC transactions

Compared to December 2017, when the number of unconfirmed Bitcoin transactions was blown out of proportion, crypto enthusiasts do not have to deal with tedious delays anymore. While the actual number of Bitcoin keeps increasing, the network itself is less clogged with the relatively low number of unconfirmed transactions. In fact, last peak on the Bitcoin network was recorded on Oct. 5 with a total of 26k pending payments hovering in the mempool (mostly due to rather low fees).    
 
Notably, the decrease in strain on the network coincided with the release of Bitcoin Core 0.17.0. However, the update is not related to the issue of unconfirmed BTC transactions despite the actual announcement mentioning certain changes pertaining to transaction handling.

One of the solutions to increasing Bitcoin’s scalability is considered to be the Lightning Network (LN). LN, launched on On 26 December 2017, has already gained widespread adoption. The modus operandi of LN consists in transferring Bitcoin off-chain, which is supposed to solve the slowness of the Bitcoin network — the transaction is conducted on a separate channel that is created by two traders.
image
The launch of LN conveniently coincided with a sharp drop in transaction fees (almost 50 percent), but there is not enough data to determine the exact effect of LN. Most likely, the aforementioned drop in fees was caused by the dramatic crypto rout that started in January. As of Nov. 18, the total capacity of LN is worth more than $1.64 bln with 4,073 nodes currently running on LN.  

SegWit (segregated witness) posed as a solution for unclogging the Bitcoin network. It’s a software fork that catered to the needs of Bitcoin enthusiasts who wanted a bigger blocksize. The technology has been already adopted by major cryptocurrency exchanges such as Coinbase and Bitfinex. Nevertheless, SegWit still accounts for only 0.1 percent of all Bitcoin transactions.

The growing support for zero confirmation

Since Bitcoin evangelists strive to achieve the mainstream adoption of the world’s most popular digital currency, there have been numerous discussions about zero confirmation. Imagine that Bob wants to buy a PS4 in a store with Bitcoin, but at the same time, he doesn’t want to wait up to 40 minutes for his transaction to be confirmed. Hence, it would be logical for retailers to adopt zero confirmation transactions and off-chain transactions to accelerate the purchasing process despite the risks of double-spending. As mentioned above, the main purpose behind confirmation is to avoid the much-feared double spending.

Meanwhile, the Bitcoin Cash community is already mulling over accepting zero confirmation BCH transactions in order to give a competitive advantage to the network. All the payments could be conducted instantaneously, and the fact that BCH has a block size of 8 MB (compared to Bitcoin’s 1 MB) makes it a perfect choice for conducting instantaneous transfers. Back in May, Bitcoin’s offspring successfully completed an upgrade, increasing the size of one block to 32 MB.

“The current path that the small blockers are taking has the wrong economic code and will likely end in failure if Bitcoin isn’t allowed to scale soon.” Roger Ver  

Speaking of further innovations, a recent Forbes article suggests that Bitcoin needs a better consensus algorithm that is superior to the current Proof-of-Work (PoW). For example, IOTA, the 12th biggest cryptocurrency by market cap, is using a Markov Chain Monte Carlo (MCMC) technique — every two transactions that have to be verified are confirmed in a random fashion. The system requires a miniscule amount of Proof-of-Work.

The bottom line

The scalability issue continues haunting Bitcoin. While the number of unconfirmed transactions remains fairly modest compared to Bitcoin’s peak, the great block size debate continues. Whether it’s the Lighting Network, SegWit, or CPFP protocol, it’s clear that this issue has to be resolved in order for the king of crypto not to cede ground to altcoins that offer much faster transactions.

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What is DAICO? Incorporating Features of DAO and ICO

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The next generation fundraising system for startups and new major projects explained
What is DAICO? Incorporating Features of DAO and ICO
Contents

Lately ICOs have emerged as a new way to raise funds for fintech startups and have got all the popularity with the recent boom that cryptocurrency has seen. Every other ad on the internet has to do with ICOs. It’s not just the young projects that take refuge in an ICO for raising their starting capital and implementing the ambitious ideas– old corporations also try returning positions by announcing ICOs and Kodak is a perfect example of that.

ICO is proving itself to be a perfect invention not just for investors but also for developers. It offers a chance to developers to raise money if they’re convincing enough, whereas users can make investments in a project of their choice to support it and earn profit.

What is DAICO and how it came into existence?

A question that is trending, however, is what is DAICO? Well, as ICO got popular, it attracted many frauds as well. They were able to raise massive amounts of money by simply setting up promo-websites and white papers. Due to the increasing dissatisfaction of potential investors, some countries came up with solid regulations and a few even banned cryptocurrency and ICO entirely.

This led Vitalik Buterin to come up with DAICO ICO which is simply an improvement to the existing ICO. It integrates ICO with DAO. As far as DAO is concerned, it was a venture capital fund aimed at Blockchain- and crypto-related projects. It was a promising concept but, unfortunately, it got hacked because of some existing vulnerabilities in the system and that resulted in almost 3.5 mln Ether being lost.

As a result, the community voted in favor of a hard fork that led to the creation of Ethereum Classic – the original Ether, and Ethereum, the new Ether created after the hard fork. Now, some features of DAO, like the ability of spreading the funds over time, have been incorporated into DAICO.

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What are the features of DAO and ICO that have been put together to form DAICO? While DAO leverages crowds’ wisdom and doesn’t place complete trust in a centralized team, ICO is  based around a single project. DAO’s funding is spread over a period of time- the feature that is used in DAICO. It has to be added that in ICO, there’s no risk of 51 percent attack- DAICO will also utilize that.  

Now that you know what is DAICO, let’s do a bit of a DAICO ICO review to find out more detail on this subject.

How does DAICO work?

DAICO starts as a smart contract that is in contribution mode. This contract offers a certain mechanism that allows contributors to send their funds to a particular project while getting network-specific tokens in return. At the end of the crowd sale period, the contract prohibits any further contributions from anyone.

Once that contribution period is ended, a variable called “tap variable” gets into effect. It is usually programmed for predetermining the amount that can be withdrawn by the developers from token sale funds in a second.

The initial limit is zero; however, the contributors can increase the tap by voting on the resolution.

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Which DAO elements have been incorporated?

DAICO, basically, has three key elements of DAO.

First of all, it doesn’t place complete trust in any centralized team and there’s a voting system in place that makes decisions related to funds.

Secondly, it does not release funding as a lump sum amount – rather it’s spread over time through a particular mechanism.

Lastly, there’s an opportunity for refunding the amount being contributed. The decision is again based on a voting system and contributors are allowed to vote for refunding the remaining amount of money, in case the project is not implemented properly by the team.

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ICO vs DAICO – what’s the difference?

If you do a comparison of DAICO vs ICO, the primary difference you’ll observe lies in access to the funds.

In case of ICO, developers can fully access all contributed funds as soon as the token sale is finished. It’s the responsibility of the developers to make an advance calculation of exactly how much would be necessary for producing minimum feasible product. When this ‘soft cap’ amount is reached, the work on that product is started and money is spent wherever they feel necessary. However, if the initial ‘soft cap’ is not reached, they’re liable to refund that contributed money. And, if they’re able to reach the ‘soft cap’, there isn’t any real obligation that remains.  

When it comes to DAICO, voting is done on resolutions for either increasing the tap or for returning the remaining funds being contributed.

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The major characteristics of DAICO

Even though the system hasn’t been fully implemented yet, still some of the major features of this budding concept can be highlighted with the help of a project that is aimed at conducting the very first DAICO. Here they are:

  • Only the project developers can initiate a resolution for voting on the tap increases
  • Tap increases can only be under a certain percentage limit for abuse prevention
  • There is a limit in place on the frequency at which tap increases can be made
  • Only investor tokens can be used for voting, not the ones held by the project developers
  • In case of a planned poll, the contributors are informed in advance

So, DAICO is the next generation fundraising system for startups and new major projects. Though not implemented yet, the very first project seems quite promising and will lay the foundation of a new era.

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