The father of ICO Fabian Vogelstein: forget about tokentalk


Once the standard token ERC-20 has led to a surge of launches ICO. Today its developer calls tocancel «least interesting» application Ethereum: too much attention to the «making money». In his view, a Digital Identity is to develop on the platform.

«This is what the future requires, absolutely not,» he said.

Vogelstein wants to take the model of the standard tokens ERC-20 and transfer its capabilities to one of the most popular features of the blockchain. Digital Identity is information about an object used by a computer system for the user’s access to the services and sites. Thanks to her, many processes do not require human involvement and fully automated.

This solution has much chance of success, given that the traditional protection of Digital Identity stops working: software to protect user data compromise, and millions of personal data be disclosed. Blockchain also provides the user with full control over its information, which reduces the level of fraud and does not allow large enterprises to use customer data for personal purposes.

Chaos in the issue of Digital Identity is not easy to put in order, and since there are already dedicated to this blockchain startups, Vogelstein sure, something like a standard for token-ICO can give the right impetus to the industry.

Vogelstein wondered if the standards ERC-20 has caused today’s obsession ICO, is it possible to use the same idea anywhere else? And they recently presented standard Digital Identity ERC-725 should answer this question.

As the developer said in a conversation with Coindesk, the reason is simplicity: «For the same reason, ERC-20 soared against other systems. When there is a harmonization of the interfaces, we can suddenly get an explosion of experiments».

ERC-725 determines standartisied actions that should be performed by each project on Digital Identity. For example, to add suggestions in the smart contract and the mechanisms to get to these proposals later. When using the system of standardization entrepreneurs and companies know that their application will be able to communicate (to agree on) interface with other applications using the standard. Vogelstein describes ERC-725 as «very flexible» program that can be used literally everywhere. «Digital Identity works not only for people but also for objects and robots», — said Vogelstein.

Work on the standard is not yet finalized, and now it is available on GitHub, where other developers can make suggestions. Before changes will be made to the Ethereum Protocol, most developers must approve the innovation. And, as it requires careful technical analysis, it may take years.

«This draft proposal. In the end we all will discuss it. Can be suggestions and changes, said Vogelstein. — Ultimately, we will come to the decision that all the deemed the most reasonable.»

The proposal has already provoked intense debate. In particular, the question was raised whether the standard Digital Identity. But for the most part the response was positive. The developer of Ethereum Alex van de Sande called ERC-725 «very useful», and the developer julienne Butel said, «Is that really necessary».

Vogelstein aware of the impact this will have on the ecosystem in the long term: «Honestly, I thought about it for two years, and the idea remained in my head. It’s so simple. I was waiting for other projects dedicated to this standard. But they did not. So I did».


Venezuelans will receive a minimum of 0.5 Petro per month

Venezuelan President Nicolas Maduro (Nicolas Maduro) said that the reference to Bolivar Petro will increase the minimum wage 60 times to $30, 1800 sovereign bolivars or 0.5 Petro.

As previously reported, the new system of wages and prices, linked to the national cryptocurrency Petro, will come into effect on 20 August. Since that date, the exchange rate PTR is officially set at $60 according to the cost of a barrel of oil in the international market.

Petro one will cost 3600 sovereign bolivars (in the current currency – 360 million).

Currently the minimum wage in Venezuela is a sovereign bolivars 30 – 60 times less than under the new system.

In a situation of rapid inflation, the level of which, according to experts, by the end of the year will reach 1 000 000%, the bolívar fuerte is one of the most rapidly depreciating national currencies in the world.

New bolívar soberano will be «anchored» in a Petro – state bitcoin Venezuela, Maduro first announced in December 2017.


Kraken considers trade tokens BCH SV «extremely risky investment»

American cryptocurrency exchange Kraken has warned users about potential risks of trade tokens Bitcoin Cash SV (SV BCH).

Kraken wrote in a blog that supports trade both tokens that appeared after hard forks. The ABC Bitcoin Cash exchange was awarded the Ticker BCH, and Bitcoin Cash SV — BSV.

However, Kraken stressed that the BCH SV “does not meet the usual registration requirements” on the exchange and should be treated as extremely risky investment project.

The crypto currency exchange has listed a number of worrisome moments, or “red flags” for traders, including the lack BCH SV wallets that support protection against replay. In addition, according to Kraken, miners BSV subsidized or operate at a loss.

Kraken said that the representatives of the Bitcoin Cash SV “threaten and openly hostile to other circuits,” and the survival of the network can be “mutually exclusive with others.” The exchange also reported that some large holders BSV said that “throw” them “ASAP.”

Currently Kraken monitors both networks and will open the possibility of making a Deposit or withdrawal for BCH and BSV until you deem it safe, said in a message exchange.

We will remind that earlier Huobi has also decided to assign a token Bitcoin Cash ABC Ticker BCH.


What threatens banks: cryptocurrency or failure of the regulators?


The founder of the cryptocurrency Mythos Fund Capital Ryan Sean Adams believes that «banks today is like a printed newspaper in the early 90-ies of the last century,» bearing in mind that the development of the Internet has meant that increasing amounts of information that gets people began to move on the computer screen, and later of the gadget. But print media still exist, trying to survive, including through better printing, attachments, samples of the goods as well as other devices that support interest in it. It has been almost 30 years since the advent of the Internet society, however, the print media survived, but the survival of banks faced with new technologies such as the blockchain and cryptocurrency.

«Bank run» because of the cryptocurrency Apocalypse that will not come today

The funding of any Bank is to attract depositors, and in average 80% of these resources is money individuals, only 15% — legal persons, and 5% is Central Bank money. Credit organizations are very sensitive to the phenomenon as «bank run», that is, when depositors massively withdraw money from their accounts: usually, even a decrease of 5% of the total Deposit base within a few days can put the organization on the verge of stopping their activities. In this case, usually the situation is saved by the Central Bank of the country by providing additional liquidity.

«Bank run» could begin for objective reasons (the uncertainty of depositors that banks are able tomorrow to meet their obligations by reason of non-confidence in the economic policy, which began disruption the release of the funds from ATMs and others), and subjective: for example, due to competition among banks or in politics. So, during the ongoing political crisis in France, which caused a surge of interest in cryptocurrencies, reports emerged that the country may face a «bank run», organized by the demonstrators. In the spreading of rumors about it took part of the face, not directly related to the political situation in France, such as «tweet-poet» Max Keiser is enough to recall his tweet in early December 2018. However, as noted by one of the inhabitants of Paris, «a mistrust of banks may arise in France, but obviously not now, but in ten years».

Roman banks with cryptocurrency: started and ended by Fiat

Banks currently are and begin to work closely with new financial technologies. So, the beginning of 2019 brought the news that the London Euro Exim Bank begins to use one of three technology platforms Ripple — xRapid. And it involved not just in experimental mode — this is already implemented in tens of the credit organizations around the world. It is important that the traditional banking system, in fact, started the process of dismantling the popularity of the system of Bank communications SWIFT, replacing her on some of these (for example, in Russia the banks that came under sanctions by the U.S., moved to a domestic analogue SWIFT), and clicking on cryptocurrency solution that includes the application token XRP (by the way, the technical condition is optional when working with all platforms Ripple). However, this is only a small step: still, the transaction will eventually lead to payouts in Fiat.

Similarly minor modifications to the banking system is its gradual manifestation of openness to working with cryptocurrency business. So, Silvergate Bank of California in the documentation submitted for passing IPO, reported raising $1.7 billion from 483 cryptocurrency companies, including such as Coinbase, Gemini, Kraken and bitFlyer. Thus, the Deposit base was formed cryptocurrency business but it is crucial that the money was still Fiat. As a result, we see that the big players in the cryptocurrency sector apply for banking services and place funds does not in any cryptocurrency Bank that only works with bitcoin, on both passive and active operations, and the organizations that deals in Fiat.

Cryptologist wish to use bitcoin?

But even this interaction is not guaranteed. In Switzerland, considered one of the most favorably minded towards cryptocurrencies countries, accounts for these organizations opens a small number of banks. In Cyprus and in India there is a ban on working with organizations cryptocurrency and crypto-enthusiasts are working to change the situation.

Meanwhile, in cryptosphere there is no consensus about what to do with the first cryptocurrency. So, analyst Jimmy song argued that it is better to use for payment purposes is not bitcoin and Fiat with credit cards. The logic here is that it is better to save cryptocurrencies and not to waste them, though, on the other hand, what of the fact that the logic of the Creator of bitcoin Satoshi Nakamoto, it is intended to be a substitute for Fiat money? Recently, a review of the song criticized the author Talks podcast, Colin and crypto-analyst Tony Weiss felt that to spend bitcoin makes sense, if there comes a need and if there is no desire then buy them again. It is obvious that in this approach, the mass creation of cryptocurrency banks, which form the Deposit base and conduct all its operations only in cryptomath and not in any Fiat, at the moment unlikely.

The Prime Minister: «something else you need to prepare.»

Does this mean that banks may not fear for their place in the future financial system? For example, most bankers Belgium are confident that their organization is not. Colleagues of the Belgians over the ocean, in the fed, Express concern that FINTECH companies are set to redraw the banking sector, and their development can just be ignored. What cryptocurrency is a serious, confirmed Prime Minister of Russia Dmitry Medvedev: «If we talk about digital agenda, the figure is such a matrix, which in General are all now developing. Here it is necessary to Fund as quickly as possible, because otherwise we can’t do any work». He also stressed that «to something else you need to prepare…», giving to understand that the development of modern financial technology can have big consequences.

January 15, Medvedev warned those who intend to «bury» the cryptocurrency that you can’t do it, and you need to see in this phenomenon of «light and dark side, as any economic process.» Interestingly, two senior officials of the Russian government, Minister of economic development Maxim Oreshkin and Deputy Prime Minister Maxim Akimov, despite very sceptical about the cryptocurrency has mentioned the important points which arise in connection with this phenomenon. So … drew attention to the fact that due to the cryptocurrency come a large investment in the development of new technologies, and Akimov said that developing on the basis of the amount of cryptocoins financial services have development potential.

USA and Russia are waiting, Venezuela changing the banking system

In the United States and Russia there is an understanding that financial technologies have great potential, however, the reaction is more cautious wait-and-see, or, as in the case with the SEC even the most critical. However, despite the presence of crypto-currency phenomenon in the life of those countries, truly groundbreaking events occur in other States.

Venezuela was to transfer all Bank accounts of citizens in public cryptocurrency Petro, but if this step still possible to consider, given the decentralized nature of this kryptonite, the levying of taxes in the form of various cryptocurrencies to the budget of the country without being converted to Fiat by the banks is already significant. Credit institutions becomes interesting to attract funds on deposits in cryptocurrencies. It is clear that this development in the banking sector Venezuela was the result of hyperinflation, loss of public confidence in local currency, when the cryptocurrency as bearers of values, perceived as an interesting asset.

Of course, the situation can go the other way: if in Venezuela a request for the cryptocurrency in the banking system was formed by the society, not the authorities, in the event of a sharp depreciation of the classic assets in the reserves of Central banks, and under the influence of the financial sanctions regulators can begin to replace them with the cryptocurrency, which was forecast to 2019 cryptographer Nick Szabo. In this case, the example of Central banks will lead to the transformation of the banking system in General in the Venezuelan scenario. However, as noted by the Winklevoss brothers, the fact that gold started to be replaced by cryptocurrencies, it is necessary for the proper regulation, that is, everything depends on the desire of regulators.

The mistakes of regulators will accelerate the disappearance of banks, and the transition to cryptocurrency

The scenario proposed by Nick Szabo may be carried out in individual countries, but overall, the changes in the banking system, which will lead to the disappearance of the need for its services, can begin because of wrong actions of regulators. Picky attitude towards cryptocurrency trading leads to a rise in the popularity of sale amount of cryptocoins on decentralized platforms. If the rate of increase in the needs of FINTECH companies in the financing is not eligible for the range of Fiat by the banks, businesses will increasingly switch to direct funding of cryptomath. And this will happen not only through the ICO, which becomes too problematic in a number of countries, and via the cryptocurrency lending.

In turn, this will lead to a greater spread of wage cryptomelane, that is, the emergence full of crypto-currency ecosystems, which cryptocurrency will be the focus of all necessary banking services. In such a situation the need for banks will begin to plummet, and it has become a fundamental «bank run» when the rescue of a credit institution is impossible: the regulators simply not enough resources. Yes, Fiat can print out and fill banks with liquidity, but in this case, the transformation of the banking system will have on the Venezuelan scenario. Thus, if regulators will strongly contribute to the development of cryptocurrency, what is in doubt, banks will be able to survive for quite a long time, but the more attempts to limit the spread amount of cryptocoins, the faster will come a time when banking services will cease to be necessary to society.

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Global stock markets recovered after the fall

Stock markets in the US and Asia recovering from the largest drop, which took place on 5-6 February. On the European market today and is expected to increase.


According to Reuters, after the largest one-day sales for the last six years took place February 5, the evening of 6 February, the us market rebounded by 2%.

Auction 6 February was very volatile. So, index Dow Jones has observed oscillations in more than 1100 points from the minimum and maximum values.

According to the trading results Dow Jones Industrial Average rose 567.02 points, or 2.33 percent; the S&P 500 index climbed 46.2 points, or 1.74 percent; and the Nasdaq Composite gained 148.36 points, or 2.13% of.

Peter Cardillo (Peter Cardillo), a senior economist at First Standard Financial, predicting a bounce back to record levels, said: «the Current situation in the market is a classic market, which was looking for a bottom.»

While there are opinions that the volatility will continue.

«I don’t think the volatility is over. These types of movements usually takes about three weeks to get through the system … and volatility suddenly settles,» said Jayj, Kinahan (JJ Kinahan), chief market strategist at TD Ameritrade in Chicago.

Among traders there is also speculation that the sale of February 5 was caused by automated programs.

The head of the Commission on securities and stock exchanges of the USA Jay Clayton (Jay Clayton) stated that «cannot say» what caused the sharp drop in stock prices in recent trading sessions, but all signs point to the fact that financial markets are functioning normally.

The Secretary of the Treasury USA Steven Mnuchin (Steven Mnuchin), in turn, said that the recent volatility was not enough to shake the fundamentals of the market.


According to the Financial Times, the stock markets of Japan and Hong Kong while there is a rally amid the return of buyers after a sharp sell.

As of today, Japan’s Topix index climbed 0.4%. On Tuesday 6 February, he lost 4.4%, its biggest one-day decline since November of 2016.

Hong Kong’s Hang Seng index failed to hold intraday gains 1% after falling by 0.5%. The CSI 300 index in mainland China decreased by 2.4 %.


On European stock exchanges today, is expected to increase.

According to the initial rates of brokers located in London, the FTSE 100 could rise by 0.5-0.6%, Frankfurt Xetra Dax 30 added 0.9%.


Trade platform tZero will be held in the hours of the American session

Trade platform for security-tokens tZero from retail giant Overstock is held exclusively in the hours of the American session as brokerage services to traders provides new York’s Dinosaur Financial Group, reported CoinDesk.

Note that the first 10 tokens tZero was purchased for $8 that lower prices STO more than 20%. However, the participants in presale at the time, had the opportunity to buy coins in between $5-$8.

Follow the quotes tZero and create orders in this case can only be approved by users who are accredited investors.

At the same time, the company plans to allow users in the future to trade 24/7. TZero also presumably intends to obtain a license broker-dealer and to August, to open access to retail investors.

The main income tZero intends to obtain from conducting tomenselo for other companies, however, the representatives of the platform do not deny that is possible in the future implementation of fees for the auction.

Recall, start tZero was held last Thursday.


Startup Kik will sue the SEC for the status of your token

Manual startup Kik Interactive Inc. intends to judicially challenge the Commission’s decision securities and exchange Commission (SEC) on recognition of token in Kin securities. This was in conversation with The Wall Street Journal said CEO Ted Livingston.

In September at the end of krautsalat startup Kik has raised $98 million According to the Agency, the company violated the order of registration of the ICO, without revealing properly information, resulting in spread of unregistered securities.

In turn, Livingstone emphasizes that to recognize Kin securities not allow propagation of a token.

«Token Kin was conceived as a tool monetization platform Kik. Users can make Kin more than 30 mobile applications, performing various tasks. And the law «On securities» in 1934 does not allow to classify them currency,» he said.

The final decision in this dispute should make the court date which is still unknown.

We will remind, in November of 2018, the developers of Kik messenger has decided to abandon the Ethereum blockchain in favor of Stellar.

Download the app ForkLog for Android smartphones!


Weiss Ratings: Fundamental indicators point to a broad adoption of bitcoin

As the research report rating Agency Weiss Ratings, the fundamentals of Bitcoin is constantly growing. These include, Hasrat, the volume of transactions, the number of active wallets, the average Commission as well as the spread of technology Lightning Network. Rating Weiss Ratings Bitcoin has received a rating of «C+» due to «lagging technology» and high investment risks. However, as regards the adoption of the leading cryptocurrency got a perfect score. This is one of the four key components of the model evaluation of the Agency.

As they say analysts, despite the frozen value of Bitcoin, the adoption rates are growing. This happens at least for several fundamental reasons. For example, computing power in the Bitcoin network has doubled, Hasrat increased from 17 million terresa per second as of January 2018 to 38 million at the moment.

Thus, Herat is also one of the main indicators of network security. The higher Hasrat, the lower the probability of an attack by 51 percent. At a rough estimate, such a large-scale operation would cost the hackers to 280 thousand dollars per hour.

The number of active wallets is also steadily rising for the past four years. The study showed that since April last year every day was active at least half a million Bitcoin addresses.

In a protracted bear market, such stability is very encouraging.

Writes Coingape, with a peak in late 2017 daily number of transactions fell to 135 thousand. This is a great indicator that speculators and the weak players are eliminated from the game. Daily transaction volume reaches 276 thousand.


Bitmain preparing to launch sales of Antminer S15 and T15 with a 7-nm chips

Chinese mining giant Bitmain officially announced the release of two new breakthrough Antminer with 7-nanometer chips designed for cryptocurrency mining on the basis of the SHA256 algorithm (bitcoin, Bitcoin, Cash, etc.): Antminer S15 and T15. Detailed specifications of the devices have not been disclosed, but we know that in sale they will arrive on 8 November.

Recall, the head of Bitmain Wu Jihan (Jihan Wu) announced the release of 7-nm processor on the basis of specialized integrated circuits (ASIC), the hash power and power efficiency significantly higher than previous models, at the September summit, World Digital Mining in Tbilisi. Chip BM1391 uses the SHA256 algorithm, based on the technology of 7-nm FinFET and can integrate over a billion transistors, however, providing a stable and more efficient devices. Wu said that during testing the ratio of consumed chip energy and mining capacity was 42 J/TH.


Bitcoin trading through Square Cash became available in all 50 States

The mobile payments provider Square announced via Twitter that the service trade bitcoins in app Square Cash is now available in all 50 States of the USA.

The function of bitcoin trading app has been launched by the company in January after several months of testing. However, due to regulatory restrictions to it not had access to the residents of the States of new York, Georgia, Hawaii and Wyoming.

In June, the Square received in the Department of financial services of new York (NYDFS) license Regulations, which gave the opportunity to work in the state. It is worth noting that the company, the co-founder of which is the CEO of Twitter Jack Dorsey (Jack Dorsey), was one of the few owners of cryptocurrency Regulations among firms. A few days before Square the approval of the regulator of the state of new York was the operator of crypto Xapo — it was only the sixth license issued by the NYDFS cryptocurrency company.

In the States of Hawaii and Wyoming regulators have required double the reserve money to ensure the volume of cryptocurrency assets held for clients. Spring in Wyoming overturned the rule is given the opportunity to open BTC trading via Square Cash for residents of the state. What exactly allowed to do in Georgia and Hawaii, the company has not yet commented.

Recall that for the first quarter of 2018 Square earned bitcoin trading $200 thousand and the second to $420 thousand.