Yuri Molchan

Vitalik Buterin Suggests Solution to Ethereum Congestion, GAS Fees to Be Kept Low

Buterin finds a quick solution to the Ethereum Blockchain hold-up
Vitalik Buterin Suggests Solution to Ethereum Congestion, GAS Fees to Be Kept Low

 

During the first two days of July, Ethereum transaction fee rose to almost $1. The amount of operations has been fluctuating and now so far has fallen below 500,000– that is the first time within nearly half a year.

As a result, the congestion that showed up on Ethereum prompted Binance to lift their GAS price on withdrawals to 180 Gwei, which is 0.00000018 ETH.

Vitalik steps in

Responding to this, Buterin, the Ethereum co-founder, came up with a different proposal of raising the price of GAS. Currently, Ethereum has adopted a rather user-centric process, in which the largest fee (compared to other fees) is included.

The trouble, though, is the lack of motivation on behalf of customers to offer a fee higher than average. The volatility of Ethereum’s operation fee impacts all apps (dApps) powered by this system.

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Buterin’s proposal

Vitalik has suggested making an auction for this fee model. The idea is that users bid a price they choose for the transaction they want included. When the auction is completed, the lowest fee the miner can accommodate will be made effective for everyone.

Buterin’s idea is about the keeping of the charge at its lowest.

If this new system is utilized, the scale for earning would increase for miners, since they will be able to manipulate the cost simply by stating the minimum number of blocks in which their transaction will show up, rather than the system where they must indicate a concrete fee.

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Eric Eissler

2018: Time to Replace SWIFT With Cryptocurrency?

Cryptocurrency seeks to provide a system of quick-settling payments, with low associated costs. But can they take over SWFT, the 45-year old program that is still the backbone of the international banking system?
2018: Time to Replace SWIFT With Cryptocurrency?

Cryptocurrency seeks to provide a system of quick-settling payments, with low associated costs. But can they take over SWFT, the 45-year old program that is still the backbone of the international banking system?

Making payments has been an age-old challenge since the dawn of human civilization, we have developed many forms of payment systems from barter and trade to gold coins and fiat money. However, most payments of the past have required two parties to physically be present to transact.

That worked well for most of the history of human civilization, sure payments took time if you were Alexander the Great trading with far-flung kingdoms, but our predecessors didn’t have all the modern conveniences that accelerated trade and business to today’s fast-paced levels.

Closed society

To facilitate and meet the needs of international commerce, in 1973, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) was created to help banks send money to one another.

This 45-year old program is still the backbone of the international banking system. It was recently hacked and $6 mln was stolen. This was not the first time this antiquated payment system was hacked either.

Furthermore, SWIFT is a society and to send or receive money a bank must be a member.

Membership is required because SWIFT does not facilitate funds transfer: rather, it sends payment orders, which must be settled by correspondent accounts that the institutions have with each other. Each financial institution, to exchange banking transactions, must have a banking relationship by either being a bank or affiliating itself with one to be able to transact. This is not open to the general public.

Being a member of a society to send and receive money is a pretty exclusive privilege and it excludes many people. Sure, you could always send a check, but even that is old technology and most foreign banks won’t accept checks drafted in foreign currency. Besides the US not many other countries rely on pen-and-paper technology.

The way forward

Cryptocurrency seeks to provide a system of quick-settling payments, with low associated costs. That is the premise of Bitcoin and other cryptocurrencies, most of which are decentralized, while some are centralized and seek to work with banks and other institutions.

There has been a rise of other cryptocurrencies, built on newer and better technologies, which want to make payment processing their main capacity.

While the market is still young and many currencies are trying to find their footing, several standout coins have real potential, some are more well-known than others, and some are still in the shadows waiting to be recognized.

Adoption of cryptocurrency for a standardized payments system is still well off, but there has been much action in recent months as Ripple has signed testing deals with MoneyGram, American Express and Spanish bank Santander, just to name a few.

While Ripple might be used for more institutional transactions, Bitcoin and Litecoin are used for smaller payments and for sending remittances to other countries. Now that Bitcoin implemented SegWit and Lightning, the currency has regained its speed and low cost to perform transfers.

Additionally, Bitcoin ATMs have begun to spring up around the US and many people are using them to buy and sell, and send Bitcoin to other countries.

Battleground 2018

The New Year is just getting started and crypto is rising out of its current slump. Cryptocurrency has a long future ahead and its potential for revolutionizing the payments market is very bright.

However, there will be many different coins contending for the top spot in payments and it may take some time to see which coins will emerge as the main payment options. This year will be key in determining regulations, taxes and general acceptance.

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David Dinkins

Financial Services Firm Circle Is Cozy With Regulators, Wall Street

Circle is partially owned by Goldman Sachs and has an unusually friendly relationship with regulators.
Financial Services Firm Circle Is Cozy With Regulators, Wall Street

Circle, the financial services company that is buying altcoin exchange Poloniex for $400 mln, has an unusually friendly relationship with Wall Street bankers and financial regulators. This coziness has raised a number of eyebrows in the notoriously anti-establishment digital currency space.

It’s complicated

Cryptocurrency enthusiasts have a complicated relationship with Wall Street, who they generally eye with skepticism. On one hand, bankers represent everything that is wrong with the existing fiat-based financial system, as exemplified by the excesses of the housing bubble and the subsequent bail-outs. On the other hand, it’s hard to deny that Wall Street’s interest in digital currencies has helped to raise cryptocurrency’s profile – and price.

The inventor of Bitcoin himself, Satoshi Nakamoto, encoded a not-so-subtle swipe at bankers in Bitcoin’s genesis block:

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks

Goldman Sachs

If Wall Street is in many ways the enemy of crypto enthusiasts, then Goldman Sachs is nothing less than the devil himself. The white-shoe investment bank is notorious for its connections with the US government, which critics call a veritable revolving door. In fact, some have taken to calling the bank “Government Sachs.”

The current treasury secretary, Steve Mnuchin, is a former Goldman exec, as are past treasury secretaries Hank Paulson and Robert Rubin. Countless lower-level government officials are alums of Goldman or have close ties to the bank. One former CEO of Goldman Sachs, Jon Corzine, resigned to become a US senator and later governor of New Jersey.

Goldman Sachs also has its fingers in the crypto pie, with enough investments in the sector to warrant a warning in its annual disclosure to the SEC. The bank warned that its connections to businesses in the cryptocurrency space constitutes a possible risk to shareholders. Guess who Goldman owns a significant stake in? Circle.

Regulator-friendly

Circle also has a reputation of being cozy with regulators. In an era where the CEO of Apple is willing to defy federal courts to protect users’ privacy, or where the crypto exchange Coinbase has taken the IRS to court and won a partial victory, Circle’s friendliness with regulators is a bridge too far from many enthusiasts. When asked at a conference if Circle would comply with a federal subpoena asking for users’ information, CEO Jeremy Allaire said “Hell yeah, of course!”

Today, news broke of an agreement between Circle and the SEC over the acquisition of Poloniex. According to a leaked slide from a confidential Circle presentation, the SEC went so far as to promise absolution for any of Poloniex’s regulatory violations if Circle agreed to take them over and put the exchange on the straight-and-narrow.

While such a closeness with bankers and regulators may make crypto-anarchists unhappy, it could very well propel Circle to greater success. Sometimes the path of least resistance is compliance, and whether the community likes it or not, Circle has apparently decided to go that route.

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Stavros Georgiadis

The Top Rate ICO Industries in 2018

Investing in ICOs requires due diligence and analysis of potential risks and returns.
The Top Rate ICO Industries in 2018

Investing in ICOs requires due diligence and analysis of potential risks and returns. CoinDesk is its article named “The Seven Pillars of ICO Investing” has listed the most important pillars to consider before deciding to invest or not on any specific ICO project.

These 7 Pillars are the following:

  1. Team
  2. Idea
  3. Execution
  4. Legal/Regulatory Framework
  5. Tokenization
  6. ICO Structure
  7. Price Divers

What is interesting and should not be surprising though in the ICO investing is the fact that business models and marketing, promotional channels differ significantly in the amount of fundraising, as some business categories have in general twice the median funding compared to the smaller ones. The following statistic may be useful to investors as it represents the ICO categories with highest median funding. A higher amount of funding may be justified by future business prospects about what investors believe are the most promising trends that could be deliver desired returns on investments given the risks taken.

Categories with highest median funding in 2018:

  1. Blockchain Infrastructure
  2. Internet & Telecommunications
  3. Computing & Data Storage
  4. Data Analytics
  5. Asset Management
  6. Legal Services
  7. Social Media & Communication
  8. Supply & Logistics
  9. IT
  10. Identity & Reputation

These business categories are referenced not in random order, but from highest to lowest order of median funds raised. The Blockchain Infrastructure category has the highest median funds raised at $ 7,012,289, while the Identity & Reputation category has the lowest median funds raised in 2018 at $ 3,750,000. The first and last business categories have a significant difference between them in terms of median funds raised as the Blockchain Infrastructure category is 87% larger than the Identity & Reputation category.

Another key interesting statistic in ICO investing is the geographical distribution of projects fundraising in the third quarter of 2018. The following infographic shows that there are again very large differences within continents. Europe and specifically Russia with $ 182.9 Million was the largest market, Israel with $19.6 Million was the smallest market, while South Korea witnessed a significant drop in fundraising as according to ICORating, in Q3 2018, 17 projects with South Korean origins raised USD 68 million, compared with 16 projects and USD 301 million in Q2 2018.

Geographical distribution of projects based on origin of the project team, Q3 2018

Geographical distribution of projects based on origin of the project team, Q3 2018

Country of origin means a country in which more than 50% of team members were living at the time of an ICO.

Another point worth mentioning is that in Q3 2018 USA had the largest number of projects compared to all mentioned countries in the above infographic, still Russia with a smaller number of projects, 63 was as mentioned the largest market.

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Crypto Gags Heewon Jang

QUIZ: Which Crypto Best Fits You According To Your Football Preferences?

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Still Thinking Which Crypto To Buy? Let This Quiz Help You
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Coins Guide George Shnurenko

How to mine NEO for Free

🎓 Coins Guide
The moment the coins passed through the development phase, the creators made sure that the 100 million coins got pre-mined.
How to mine NEO for Free

Formerly known as Antshares and popularly referred to as the Chinese Ethereum, NEO was founded in 2014. It's founders aimed at initiating a digital system that supported smart contracts and offered the exchange of digital assets. It went on to become the first open source Chinese blockchain technology. 100 million NEO represents the blockchain ownership. This original 100 million NEO was created via the Genesis Block.

The distribution process was carried out through a unique process referred to as the white paper mechanism. The 100 million is also the total number of NEO tokens, and it cannot be increased. Since NEO cannot be divided into smaller units, the lowest portion will always be a whole number. Owing to its technological prowess over its competitors, profits boomed in 2017, and the value of the coin ascended. It even offered investors a Return on Investment as high as 21,000%. Currently, its market cap is valued at over 1.45 billion dollars.

Mining NEO

Most people fall into the category of those who link NEO to other digital currencies. Such people believe that by adopting the use of specialized hardware and GPUs, they will be able to mine NEO. However, that is not the case as it is impossible to mine NEO. The moment the coins passed through the development phase, the creators made sure that the 100 million coins got pre-mined.

Rest assured that you cannot mine the cryptocurrency. To further elaborate on the point; PoS protocol or better known as Proof of Stake gets used to undertake the process of distributing NEO. In the long run, the consensus gets distributed. The NEO foundation has a different kind of token called GAS besides owning the cryptocurrency NEO. Rather than focus on ways to mine NEO, stake the NEO coins and wait for rewards in the form of GAS. GAS offers some profitable returns once a person stakes the GAS inside an NEO wallet.

The other PoS cryptocurrencies require that the user keeps their wallet open all along the process; however, that is not the case with ‘Chinese Ethereum.' Users' reviews and experiences reveal that wallets with staked NEO can generate GAS that can get claimed within a continuous span of 5 minutes.

The coin is not similar to the likes of Bitcoin when talking concerning mining, but great rewards get reaped once a person makes up their mind to stake it. Bitcoin's usage of PoW protocol or Proof of Work protocol is the significant difference when considering the mining process as NEO focuses more on Proof of Stake. The latter method gets preferred by most people since they feel it be more suitable and efficient.

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NEO's PoS

The version of PoS protocol used by NEO is an improved type that is called dBFT. The holders make it efficient and elaborate by voting for delegates known as bookkeepers who run the network. It leads to transactions getting done at a higher rate. The norm receives achieved due to the allowing of only bookkeepers to do the validations. GAS is the token that runs NEO. GAS is what gets used in conducting transactions of any kind including payments as opposed to NEO. The way to claim GAS tokens is by merely holding NEO in your wallet.

Staking Defined

For a miner to mine different Altcoins as well as Bitcoins, they need to go through and solve an intricate mathematical problem which then needs confirmation from network peers. The name of the system gets referred to as Proof of Work. The miners' block will get added to the blockchain once the peers within a specific network agree. To do away with the need for calculating mathematical problems which necessitate the need for high energy consumption and specialized hardware miners aim to do staking.

Cases in which a mining pool or miner finds themselves with 51% computational power through the tragedy of commons get minimized or avoided. Which such power the miner could easily invalidate legal blocks while creating illegal ones. In Proof of Stack, it will require one to possess 51% of all coins to be able to crack such an attack.

Miner

Well, it may not be possible to mine NEO. That said there would be GAS tokens that get distributed to the NEO holders once there has been a new generation of NEO blocks. The NEO team holds all the nodes in the NEO's network. That makes it impossible for users to mine GAS. However, any person holding NEO tokens in their wallet will claim GAS since it gets distributed to them.

Reasons to Mine

Mining allows people to acquire cryptocurrency without having to pay for it. Keep in mind that one can still own crypto without necessarily being a miner. People can also opt for the option of using fiat currency to buy crypto. Trade is also another method done in exchange platforms where a person can sell Ethereums or Bitcoins for NEO. Some platforms pay people in crypto by either publishing blog posts or playing video games on their platforms. Steemit is an example of a medium that rewards people within their system using Steem. Steem is a type of cryptocurrency which using Exchanges, and one can get to buy NEO coins.

Acquiring NEO

Since mining NEO seems to be a dead end, the best way to get it is through trade. Several guidelines exist on how one can obtain NEO. Below are five core steps that assist in the buying of NEO.

Via an NEO Wallet

Without a doubt, if one opts to get a wallet, then the most suitable place is from the website. Purses found there include those that have features of mobile versions, web as well as desktop. However, other options to put into consideration include the ones below.

NEO Tracker Wallet

Most users prefer this type of web wallet. Its developer, NEO Tracker, made it an open source that easy to use and functional. It allows users to hold on to NEO coins while claiming GAS.

NEON Wallet

The desktop version is available for Mac, Linux, and Windows. The wallet can hold on to GAS and NEO while users the ability to trade them. One can claim GAS should they be holding on to NEO. The fact that it is usable on most desktop operating systems, its simplicity and functionality make most users interested in it. Even its security protocol is high since no private keys get stored on their servers.

NEOWallet

It is another Onchain application that makes use of open source structure which only allows the user access to private keys. Using this feature enables the claiming of GAS when holding NEO.

NEO Wallet

Another web open source wallet that makes it possible for holders of NEO to send receive, and store NEO assets and still claim GAS.

Official NEO Wallet

Peterlinx developed the application found on the company's website as the only listed mobile wallet and only functions on the Android operated system.

NEO Paper Wallet

Anyone seeking to hang on to their value while offline and for prolonged periods should check out this form of wallet. The downside is that it is impossible to claim GAS even when holding NEO tokens.

Exchange platform

After establishing the appropriate wallet, the next step is to figure out an exchange platform. Numerous exchanges allow for the trading of NEO. Some lack the options of buying via credit cards while others insist on trading only with Bitcoins. The best way to get around it is by choosing a platform based on your liquidity, method of buying, and your location. The importance of cash is the fact that transaction fees tend to be lower where on busy exchange platforms.

Binance

There are numerous exchanges where one can be able to get NEO coins. The extensive list will include the following platforms namely Binance, Upbit, Qryptos, Kucoin, Exrates, Coinnest, Tidebit, OKEx, Huobi, Cryptopia, Coinegg, BigONE, TDAX, Livecoin, HitBTC, CoolCoin, Bittrex, BCEX, Quoine, Lbank, Gate.io, Coinrail, Bitfinex, and Allcoin.

According to research and reviews of previous and current users, Binance tops the list of being the most efficient one. Below is a guideline of how to make the trade.

  • Once one opens the official website of Binance Exchange, they will click on the ‘register' icon on the right corner.
  • Fill in the required info.
  • An email will get sent, and you will need to click on the link posted for account verification.
  • After that, you will have to send the funds in the form of cryptocurrencies like Ethereum and Bitcoin. You will use that currency to buy NEO coins.
  • The next step will be to log in then go to the Funds icon and select Deposit Withdrawals.
  • Once on the page, choose the button marked Deposit next to ETH. After the generation of a wallet address, the coins will get transferred to Binance exchange.
  • Mark the address and send tokens from ETH wallet to the Binance account. The Ethereum will get credited to Binance in a short amount of time.
  • Use the ETH in the account to buy NEO coins. There should be a reflection of the balance of Ethereum in front of the ETH.
  • Click ‘exchange' beside the Binance logo then select ‘Basic.'
  • The ‘Exchange' page.
  • You will find ‘Trade History' in the top right corner and above it is info on the market pairs section. Look for NEO/ ETH then click on it.
  • After that, the page will load, and the NEO/ ETH pairing chat will appear. Check on the location of the ‘Buy NEO' segment beneath the chart.
  • Once you see the ‘Amount' box select and enter the amount of NEO, you desire to purchase. Look for information on the ‘Total' box to show how many ETH you will require paying for the desired amount of NEO.
  • Once you click on the ‘Buy NEO' marker, expect the NEO coins to get into your NEO wallet that is on the platform (Binance).
  • After concluding the steps, you can transfer the NEO tokens from the exchange to your portfolio.

Using Fiat Currencies and Credit Cards

Most exchanges only make a trade with other cryptocurrencies like Bitcoins or Ethereum. Some do allow buying NEO using credit cards which makes the process quite easy. The only possible exchange that helps to purchase NEO with fiat currency is Hitbtc.

Using a Bank Account

Since it is hard to directly buy NEO with money one can opt for using a bank account. However, you will have to purchase different crypto like Bitcoin first. Once the Bitcoin is in your pocket, then go ahead to an exchange platform and trade the coins for NEO tokens.

Via PayPal

The method is not as direct just like in using a bank account. First, you will buy Ethereum or Bitcoins then proceed to an Exchange and trade them for NEO and transfer them to your wallet.

NEO Viewing Point

According to research and the developers, it is impossible to mine NEO. The reason being that it was pre-mined before 2014 presale. The 100 million shares got split up after being pre-mined. Ten percent was sent to early supporters. Seventeen percent got designated to the ICO Phase 1. Twenty-three percent was for ICO Phase

The Antshares Company reserved the remaining fifty percent. After a year of locking the shares, they will be released to support the long run duties of the currently NEO team.

Once you acquire NEO tokens, it is best to transfer them to an NEO wallet as soon as possible. The reward for doing that is to benefit from the free GAS. However, note that you have to hold the tokens in your wallet to reap the rewards. Be sure of the storage system to be an NEO wallet.

Acquire one from their website to avoid weak or fraud cases. After getting one, find a way to buy Ethereum or Bitcoins or any other acceptable form of cryptocurrency. Use the acquired coins and find a reliable exchange location like Binance. Trade them for NEO coins. Make sure to transfer them to your desired personal wallet to claim GAS.

Coins Guide
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