3% of the lucky ones. The main problem ICO and how to solve it

Journalist and analyst Maxim Rubchenko explains why the decrease in investors ‘ interest for the ICO, and offers his solution to this problem.

The winter collapse of the cryptocurrency market not only scared away a lot of newly minted investors, but also caused a serious crisis in the ICO. On the one hand, to raise funds in the bitcoins falling and the air can afford are either very cocky startups, or frankly skimovie projects. On the other — the possibility of quick money on buying tokens during presale or initial placement has decreased significantly. The jump rate of the coins after the listing on the stock exchange are more modest and shorter, and the risks that the newly-minted token will not live to see trading, is steadily increasing.

The situation on the market ICO today eloquently describes a new study of the consulting company Satis Group, according to which 81% of the projects were fake, 6% failed, 5% ICO was frozen and only 8% came on exchange. Thus of the 8% turned out to be successful from 24% to 47% (depending on capitalization). In other words, are successful for only about 3% of all ICO.

As a modest percentage of successful projects makes the investors to draw conclusions from their mistakes and improve approaches to the choice of tokens. If a year ago, investors were willing to buy any coins indiscriminately, by the end of last year formed the standard to which you can only invest in the ICO, where in addition to the white paper there is a clear road map, a skilled team, authoritative advisors and very desirable — a real product, at least at the level of the prototype or beta. If in addition to the project expressed interest in two or three large companies, the success of the investment was considered almost guaranteed.

The winter crisis and the increased level of risk led investors to take the next step — to start to pay attention to project Economics: the real business plan explaining how the project will earn money and thereby will increase the value of the token after the listing on the stock exchange. You can sneer at the fact that the buyers of tokens are just beginning to think about the Economics of the projects. But we should remember that in the history of dot-com investors took 5-6 years to get to this simple idea. That is, the market ICO evolyutsioniruet much faster the Internet market the initial period.

Besides, differently and could not be. While I was working the scheme «bought in the presale is sold after the listing» the main factor for the success of the investment was PR activity organizers. Now, when you purchase tokens during the ICO become too risky, it’s time to assess the prospects of the token already on the entire life cycle. That is, to engage in economic analysis of projects.

The analysis of economic efficiency of the project is a fairly complicated procedure, involving the assessment of parameters such as payback period, return on investment, taking into account changes in the value of money in time, the relationship between the project participants and their economic environment, risks associated with the project, and so on. But for all this from the ICO investors simply no information — format white paper provides nothing of the sort. Therefore, the entire analysis boils down to finding the answer to the question: why would someone need this token in real life?

The first benchmark here may be the survey conducted by the portal DeCenter. Investors were asked about what tokens they consider most promising. 41% of respondents felt such coins, giving the right to purchase goods or services. In second place (19%) were the tokens that give points loyalty programs. On the third and fourth places were coins in the games (13%) and personal tokens popular people (10%). The three outsiders made up the tokens that serve as currency in the community (7%), giving a voice to systems or providing awards to companies/projects (5%). The conclusion from these figures is obvious — the maximum chances of taking off are the coins that can be used as a means of payment, as they cause the most popular with investors.

The next step is to assess the extent of the project, the tokens of which it is proposed to purchase. A significant proportion of all ICO have on the industry or even niche projects — coins for the gaming industry, for producers of organic foods, wholesalers of flowers and so on. Meet and regional projects involving the use of the token as a local currency.

Small scale or specialization of the project are a major limitation for growth of quotations of the token: the narrower the range of circulation of the token, the less chances he has to take off on the exchange. If the project is industry specific and you don’t know what his «trick» that many other investors will not understand, therefore, the demand for the coin will be low.

Another obstacle to growth in the value of token competition from counterparts. Ideas are in the air, and most of the ICO projects are «twins». Ethereum co-founder Joseph Lubin at all sure that the majority of the organizers of licenseyou just copy other people’s ideas. Copying or not copying, but similar projects and tokens on the market more than enough. So, on may 16 in the UAE is scheduled to launch token OneGram, backed by gold. In summer, the Swiss commodities Fund Tiberius is going to launch its own token, backed by gold — tcoin. And this despite the fact that the market has already traded two «gold» coins — Goldmint and DigixDAO.

Analogues occur even when we are talking about revolutionary and breakthrough projects. So, now for the ICO preparing two projects on the organization of air taxi on the blockchain McFly and Vimana. Both of the startups. If you believe in the idea of a flying taxi and the potential of the domestic aircraft industry, the most reasonable solution would be to invest in both projects equally. Because to determine which of them has the greatest chance for success, today it is resolutely impossible. The projects will be to pull each other’s investors, which will slow down quotes tokens and McFly, and Vimana. However, two similar ICO at the same time — a rare enough situation. Most often, when deciding on the purchase token can be found on the exchanges the coin of the same project, to look at the dynamics of its quotations and to draw conclusions about future investment returns. This means that each new analog is less likely to attract investors than the previous, but the leader loses part of potential investors.

Finally, the main limitation to growth in the value of the tokens is that even if a coin is launched as a means of payment for a specific product or service, the project organizers will have to accept payment in Fiat currency. Otherwise, the client base will be too scarce — after all, the vast majority of people still belongs to the cryptocurrencies with suspicion. That is why none of the white paper makes no mention of that token will serve as the sole and exclusive means of payment for goods or services offered by the project.

That is, to purchase a product or service, it is not necessary to risk buying the token on the exchange (and thus paying substantial Commission). You can wait until the project is fully operational, and without any hassle to pay Fiat money. This is the main problem of all the ICO and the main limitation to growth in the value of the token.

Simple and obvious solutions here. It is clear only that the organizers of the ICO it is necessary to increase the economic attractiveness of possession of the token. Investors should be offered some bonuses, at least partly offsetting the many risks and costs to the Commission who have to pay when buying tokens on the exchange. Perhaps it should be dividends, which will be a percentage of the total profit of the project. Dividends on their tokens today already pay some of the crypto currency exchange. Perhaps large investors should be given the opportunity to participate in matters relating to development projects. In other words, the token being a means of payment, should all be more like stock — preferred or voting. This path will provide coins for ICO projects turning into a full-fledged fundamentally new class of investment assets.


«Samouverennyj identity» is preparing to take power away from centralized corporations

Potassium is the Yang — co-founder of the Internet Identity Workshop and Human First Tech, the independent expert on the blockchain and the technology of identity. Young worked on the implementation of the concept of «samouvereno identity» for 15 years and recently spoke about the results achieved. The researcher noted that the term «samouvereno identity» is relatively new: «When I started on this path 15 years ago, we called the ultimate goal of their work «poltavaelectro» identity». The so-called «samouverennyj identity», according to Yang, control their own «digital identity» to the same extent that we used to control their «physical identity». From the philosophical side, young link their work with an awareness of «the inherent dignity inherent in all of us, regardless of place of birth or any other signs, besides the fact that we are the people».

All this time young was working on studying how users can collect personal information, store and manage, and provide access to their personal data using their own devices and services that they completely control. «This new infrastructure open standards lays the Foundation for the new Internet layer that will replace Facebook. This is a new level where users will own their identities and to control them, by joining any number of tools and services on your own terms,» says young.

Traditional system identification allows you to assign an identifier to the Internet only within a hierarchical namespace. So, creating a Google or a Twitter account, Facebook, LinkedIn, Instagram, you enter the user name and password, which then live in a private namespace and are subject to the user agreement of the company. She can break digital identity at any time and for any reason, and the user had no legal «antidote». Global hierarchical namespaces that create a system of web sites, include, inter alia, the IP addresses that are managed by the Administration of address space the Internet (IANA) and the domain name system under the control of the Corporation on management of domain names and IP addresses (ICANN). To buy a domain name, you can have a network provider (e.g. GoDaddy) and pay $10−$15 per year, so it remained behind you. Also for the global telephone network: the user can obtain a certain number from your phone company. In both cases we are talking about renting identifier: in case of payment default or other breach of the terms of use of the domain name and phone number may be sold to another person.

Under the current identification system we do not own or control our identity cards and dependent on the other hand, which «assigns» to each a specific identifier, and establishes the conditions — be it corporations such as Google and Facebook, or the government. When the system samouvereno identity every man creates its own identifier that owns it and controls it and decides what information to share, with whom and on what terms. That is the global namespace, which is controlled exclusively by the users themselves. In addition, these identifiers should be globally unique and globally recognisable. To run a similar system called iNames tried company Cordance in 2006 (originally known as OneName, and in 2013 renamed to CloudNames). The latest solution, which describes the young, — «decentralized identifiers» (DID) developed by the world wide web Consortium (W3C) in the framework of dynamic data objects (DDO). DDO contains all metadata which are necessary for the proof of ownership with ID and its control. These include yourself DID list of public keys for the owner DID list the control IDs for key recovery, the list of endpoints of the service, timestamps and digital signature with private key.

This decentralized ID will be stored in a distributed registry, so it cannot be removed: only update that can make the owner or his authorized representative. To prove the belonging to a specific DID will be via the public key infrastructure (PKI), which is the basis of the system of public and private keys in crypto-currencies.

The current system, implemented in particular in the form of social security numbers in the United States or Unique identity number (AADHAAR) in India, the person assigns a single identification number «in all cases», that is, this number is used when applying to any of them, including the government, the organization and allows you to track all activity of the owner in every sphere of life. In addition, obtaining the user’s personal information allows the attacker to act on his behalf. When the system DID you have unique identifiers for each case and for various organizations. In this case, if one of the IDs has been compromised (for example, when hacking Bank data base), the private key from it would be useless to accounts in all other organizations. Not to say that the system DID fully protects from potential identity theft, but it greatly reduces the consequences of such «leaks».

Control over hundreds (and even thousands) of IDs that may belong to one person, will not cause difficulties through the use of software, mobile apps and cloud services. Their work will be the responsibility of providers from which the user can select the best option for themselves. Control of these can be given to trusted parties — for example, parents in case of minority, children, if an elderly person has difficulty with self-control DID, as well as lawyer or accountant.

Some of your personal information is a so-called certified information. These include birth certificate, certificate of graduation, driving license, academic degree, proof of employment and so on. This is data that has been transferred to the controlling organization and the basis on which it issued the corresponding certificate and made a notation of it in a distributed registry. The organization will forward this information to the user and further it will provide, for example, information about the date of birth through a mobile application in place. Standards for the creation of such identities are developed by members of the W3C working group on certified information (Verifiable Claims Working Group) and community account (Credentials Community Group).

Another feature of DID, is aimed at increasing privacy allows us to provide only the required information, while not revealing any data contained in DID (then as it is today, showing the passport for confirmation of age, the owner at the same time reveals his name). The data DID also divided into «immutable» — that is always relevant (these include, for example, date of birth), and those that need updating (study, work, marital status). Safety first is supported by the report of the proof with zero disclosure (Zero-knowledge proof), and in the second case the same Protocol is added to method signatures the Camenisch—Lisianski (CL Proof), was developed by cryptographers Jan Camenisch and Anna Lisianski in 2001 and allowing the owner to make changes to personal data, and inspection — to see the updated identifier.

«It’s nice to see the community, whose members invariably are collected through the Internet Identity Workshop twice a year for over 13 years, successfully embodies this idea into reality,» wrote Yang.


The eyes of the validator is: why Telnet is not an indicator for selection of the validator?

The launch of the core network Minter is not far off, and therefore, all holders BIP’s time to think about which node to delegate its coins. Askhat Beltsy, representative pool Validator.Center and future masternode under the same name on the network Minter, prepared for readers DeCenter the column, which explained why you need to pay attention to statistics and other indicators validator in testate.

Do you know what testnet?

This important event, the task of which is to test the efficiency of the technology, the code that later will become the Foundation Mineta.

Briefly about what mainnet

If testnet is a kind of a draft, a prototype production version, mainnet is a clean copy directly to the working version. This is the main network where all the processes are already taking place with real money users, respectively, there is a different level of responsibility of the parties.

For testing testname generated coins that have not been included in the total emissions and have no value, but the functionality is no different from coins that will be released in mainnet.

Testnet usually helps both sides — developers and users. Developers test their product and its functionality on users in situations and conditions similar to real use of the product. And the users in turn (they also include third-party developers) can touch the product, examine it from all sides, to find mistakes and, if necessary, to offer additional functionality that developers may have overlooked. And it’s great.

The draft Minter scheme is slightly more complicated, there is an additional party validator. It is the user and the third party developer. From the point of view of the developers of the product, it is different from other «weight suggestions», because the validator is interested in the development of the network is not less than the developers of the blockchain. And in the eyes of ordinary users, it acts as a developer of a by-product and provides an existing platform, their services, additional capabilities and other products based not only on the blockchain.

Validators select the best options for hardware configuration, strive to achieve a balance between price and quality. Test equipment, infrastructure, programs (and / or the platform) for different kind of errors, krashtest. So they get the most precious thing in the period of testnet — «experience«.

Looking at the list of validators, delegatory misjudge what he saw. And to realize all the numbers (both positive and negative), it is necessary to look at the root (i.e. in all the transactions of the network) and to conduct a serious investigation like detectives. In the case of poor performance validator must determine in what period this occurred, what did the team at this time (most likely in your channel or chat they discussed it): perhaps they were testing the load on the equipment, selecting the desired configuration, checked the security of its servers, in order not to lose data and maybe tried the system failover and auto-recovery operation switching to a backup server/channel. Yes, the reasons can be a lot, you need to conduct a «digital dig» to get to the truth and to know why the validator such unsatisfactory «numbers».

And now we can see the following picture: delegatory carried out a superficial analysis, based on indicators that do not guarantee the success of the validator, and certainly not guarantee peace of delegator. We recommend not to draw conclusions based on the number of BIP in the pool and on the number prodeklarirovany MNT validator.


First, we do not know the number of people who are in a certain pool. This can be as a couple, and one that has purchased a large amount of the domestic currency, which allowed the pool to be in the top of the rankings.

Secondly, some validators sin manipulation API of the purse, thereby making it difficult to obtain test coins to other users. They do this to get as many MNT, prodeklarirovany in its node, and thereby take a leading position in the test after restarting Testnet. When it becomes too much, they begin to create additional accounts in the Telegram and send yourself generated every 1 hour 100 MNT.

Thirdly, looking at the list of pools and seeing a large number of BIP one of them, remember, who had delegated their BTC project founder Evgeny Gordeev (6 recipients for 6 BTC), so you can understand how much it actually collected a given pool.

So I want to tell how we would have chosen validator:

Would analyze activity in the General chat community Minter;

I would look at the activity in a personal Telegram-channel or chat (Telegram became the default system of communication for Minter);

Would study the contribution to the development of the network (the bigger the contribution, maloveroyatno out of the network);

I would know what bonuses and offers the team and what their Commission;

Tracked timely response to changes in the network, that is, how team masternode finger on the pulse. This is important.

Background: the yield does not depend on the stack of the validator, but from your own number of BIP delegator, because there is a proportionally equal distribution of rewards.

Based on the foregoing, we advise you to carefully choose the validator and not follow the crowd. Analyze, stay, take an informed decision and don’t forget about diversification.

We do not claim to truth in the first instance.

We don’t learn to choose the correct validator.

We tell how we would choose.

For placement of materials within the author’s column, please write to np@decenter.org.


Should I go to work in the cryptocurrency industry?

Work in the crypto industry has become the choice of many. So, in Cryptic Labs since the beginning of autumn work of two Nobel laureate economist Christopher Pissarides and Harvard Professor Eric Maskin. Earlier Prysm Group came to work also the winner of the prestigious prize, Oliver HART. So a career in contemporary financial technology choose not only novice professionals. In addition, more and more universities world offer the appropriate training programs. But is there any prospects in the labour market, if crypto currencies become cheaper?

Short-term reduction of cryptocurrency and the demand for specialists of the sector do not change the overall trend

It is worth noting that the current «fall» of the cryptocurrency market should not overshadow the fact that bitcoin is only for the period from January 2017 to the current time is increased by 500%, which is similar to eToro analyst Mattie Greenspan. And it’s only less than two years. For comparison: gold and S&P 500 index, it took 21 years to show the worst result in the eyes of investors, during this time, the metal rose by 310%. Therefore, the decrease in demand for blockchain and cryptocurrency experts about which «hot pursuit» says the recruitment of Indeed, can be perceived as calmly as «the collapse» of the cryptocurrency market — a temporary phenomenon, which is not a trend. And the trend is confirmed Indeed: according to her, during the period from October 2017 to October 2018, that is capturing a period of many months reducing the cryptocurrency market, employers ‘ interest to professionals of the sector increased by 25.49%. Curiously, the heads are very active in the placement of appropriate vacancies than applicants. The increase in the number of summary in this area over the same period accounted for only 3.06%. It also speaks about the lack of professionals.

It is worth noting that an increasing number comes the understanding that the blockchain and cryptocurrency — things are interrelated. As drew the attention of the Vice-President of the Bitfury Group George Kikvadze «to deny this truth is to assume that it is possible to love the Internet, but not to accept the TCP/IP Protocol». Otherwise it would mean that the famous crypto-critic Nouriel Roubini, who felt that «the blockchain is not better than an Excel spreadsheet».

Employers are willing to offer the cryptocurrency professionals salary above the market

About the situation on the labour market experts of cryptocurrency industry give presentation of two studies: companies Glassdor and Hired. In Glassdoor, considering the situation last year, seeing an increase in demand on the market three times. In Hired noted that the largest shortages observed in the United States: here was a marked increase in demand four times. As a result, this has led to the fact that the salary of the technician with this profile in the U.S. almost 30% higher than the average for professionals of the IT market, which is $137,000 per year. These data agreed with the results of labor market research conducted by Janco Associates.

At Glassdoor have conducted a comparison of the average annual income in the U.S. (median), which is $52,461, with how much they estimated a specialist earns in the cryptocurrency industry: it turned out that his earnings is $84,884, that is 1.6 times higher. Such dynamics is caused by the fact that demand began to show the classic IT sector, ranging from IBM and Microsoft and ending with Amazon and Facebook.

«Hunting» for professionals in the middle

In the cryptocurrency sector employers have become iconic Gemini and Coinbase. And case Coinbase remarkable: losing in the competition of customers, the crypto currency exchange began to lose some key senior managers. During the second half of October, the organization left five people, but does it mean the crisis of the industry? Not at all: for example, Adam white, withdrawing from Coinbase, assumed the position of Vice-President for operations platform Bakkt, explaining what he saw in her more potential to attract institutional investors into the cryptocurrency than Coinbase.

«Old» and new potential growth of demand for cryptocurrency experts: China and Russia

In terms of the largest demand has been noted, in addition to USA, UK, Singapore, Canada, Hong Kong and Germany. British recruiting resource ITJobswatch shows that over the past six months, increasing as the demand for blockchain-specialists and their salary. However, great potential in this direction is in other countries — China and Russia. Zhou Ping, head of the research office of the Ministry of industry and information technology of China, writes that one of the main reasons for the insufficiently rapid pace of blockchain in the sector of the economy is the shortage of specialists. By the way, this is manifested in «the case Chuanwei Zo»: analyst Zoe, on behalf of his employer, the people’s Bank of China critically examined the cryptocurrency, and as a result came to the conclusion that they are the future, and went to work in the Bitmain for the position of chief economist.

In Russia, where the share of bitcoin to GDP was estimated at least 5%, there has been interest in the blockchain and cryptocurrency. US sanctions may strengthen the interest in these issues. On the other hand, Russia needs a clear understanding of how this sector will be regulated by local regulatory authorities. Anyway, cryptocurrency professionals who fall under the category of «specialists in information and communication technologies» entitled to the highest wages in the Russian economy.

Work in the crypto industry: love at first sight

Curious, how is a parish in the industry experts: they can look for an opportunity of employment or doing business. So, Mike Dudas, the Creator of cryptocurrency startups, said that he had gone into the industry after he read an article about cryptocurrency. He emphasizes that despite any circumstances on the market, he’s glad he made that choice. Chanpen Zhao, in the midst of «the cryptocurrency of winter», recalls that three years ago sold their sole square meters and bought bitcoins, after which they fell sharply. However, his faith in the new financial technology was justified: he was able to help out three times a large amount of money in a short time, sending part of the funds to purchase housing. It is this personal history led him eventually to the idea to create a cryptocurrency exchange Binance. Brian Norgard, key product top-Manager app Tinder, left his place of work in order to participate in cryptocurrency startups because they saw that the industry is in the very early stages of flowering.

New in kryptomere not disappointed, even seeing the decline of the market. This suggests that they are fundamentally guided by the fact that cryptocurrencies are the way of savings, and payment products in the future. Thus, the same dudes believes that after 6 months «we will be able to pay for a Cup of latte cryptocurrency». Joined in October Bitwise Rick Edelman, «the leading investment Advisor to wall street,» as he said, the American channel CNBC, continues to be confident in the correctness of his choice.

It’s only the beginning

The future prospects of the labor market for cryptocurrency experts look shiny. The fact is that, as analysts, KPMG and the American crypto currency exchange Coinbase, nearing completion of the first phase of development of the industry «investment-speculative» and comes the stage of «institutionalization». The development of the industry’s infrastructure and the arrival of institutional investors has already begun, but especially actively this process will develop in 2019 — convinced of this, and billionaire investor Mike Novogratz, who in November was lured to his work of the top Manager of Goldman Sachs.

For the cryptocurrency directions of the work aim to collect the best shots, including those with experience of the public services: international law firm Perkin Coie to work with blockchain-direction, invited in November, a former employee of the U.S. Commission on commodity futures trading (CFTC), Kari Larsen who became partner of the organization.

The fact that in 2019 after the cryptocurrency companies will «run» banks, notes and analyst Gerald Fenech, and it will create a sudden demand for specialists in this new for most credit institutions sector. The reason is obvious: banks are trying to look for ways of survival, when decentralized blockchain platforms begin to more effectively carry out their functions. Simultaneously, new financial technology is a phenomenon that will lead to a reduction in employment in most other sectors not related to them.


While zcash for preparing for the next upgrade of the system, the coin network is hidden bottom of the «Russian hackers»

Zcash for in 2019 is preparing to update a network called Blossom. To update has turned the most convenient and consistent with the plans of developers, the founder of the cryptocurrency Zuko Wilcox has published a document on Github, where each user can leave suggestions for improving the system. However, in a highly secure and confidential network zcash for was discovered BY for covert mining, which created the «Russian hackers».

New strategic priorities zcash for

On Friday 16 November at the official website zcash for operating the project Director David Campbell has announced an updated strategy, which refers to the increased openness of currency and readiness for new cooperation. In particular, these principles implied the update of the system under the name Blossom, planned for 2019. Campbell said that from past updates of the Sapling team was delighted, therefore, ready for new improvements.

«The Sapling was successfully activated last month. The update increases the performance of the proof of zero knowledge, known as the zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge is a cryptographic Protocol that forms the safe register balances without exposing the parties to the transaction and amounts. — DeCenter). This improvement means that private transactions are the basis zcash for now efficient enough to work on hot devices and hardware wallets,» reminded the COO and based on this, identified three priority areas for zcash for.

The first is adaptation, and understanding of complex technology zcash for that, despite its uniqueness, is not yet involved in the wider circles of the public. The project, says one of the founders of the coin Matthew green, like a flying car that has no doors.

«The focus of the team from the moment of creation was the creation of a highly stable and secure code to support the reliable Protocol. The development of interface code custom applications for the wider ecosystem left behind. This put users in zcash for a situation where you can use either the command line interface of Linux or the application GUI. Both options depend on the user working with a “full Noda” and retaining the full lock zcash for. None of these options is viable in the world of mobile devices,» says Campbell.

To create «doors on a flying car,» was organized by the «division of purses,» which focused on creating a mobile wallet open source. According to the developers, the wallet application will embody best practices in design, privacy and give users more options.

The Foundation also zcash for regardless of the company zcash for began work on the implementation of applications, which in turn will help developers from other companies on the platform to create a utility wallets, and mobile applications that support private transactions zcash for. The Foundation recently announced the winners of the grant program 2018Q2, which includes a secure transactional purse zcash for Electron. All the designs of the two teams will be ready by the second quarter of 2019.

The second priority direction of the company zcash for will be associated with new investments. The team, says David Campbell, has increased significantly. The project tries to avoid unnecessary incorporation and acknowledges that with growth there are changes in the structure of the organization. However, the company continues to seek top talent of the industry and promises high wages.

«We are a distributed company: the majority of our collaboration happens over the Internet. Nevertheless, we appreciate the work «face to face», so we will gather all together at least twice a year for coordination of the strategy, to create a common matter in the form of the organization,» says Campbell hopes the investment will help the company to develop faster and more efficient.

Finally, the third priority zcash for will consist in increasing the openness and willingness to work together. After all, a coin has open source, so anyone could run a node and participate in the network. To empower the zcash for the Foundation entered into a partnership with Parity to create a completely independent (from the company zcash for) the full realization of the software zcash for the programming language Rust.

«In the future we want the community involved in the ecosystem zcash for and contributed to the project. Now we work closely with our community on Twitter, in our blog, on Reddit. I want to upgrade the infrastructure of the chat, to ensure constant interaction between our core developers and the community. We recognize that the mining community plays an important role in supporting decentralization and security of cryptocurrency zcash for. Equihash, the algorithm is verifying, which controls a Protocol zcash for, was to be ASIC resistant, which means it would be advantageous to use zcash for using the hardware graphics processor,» says Campbell.

The first steps to openness

After it was formulated and announced the new strategy, the founder of the zcash for Zuko Wilcox published in his Twitter a link to the document in GitHub, which was designated the basic requirements that must be met for all of the ideas for restructuring the network in the new update Blossom. So, the most important thing is that each technical proposal from a user must match all the characteristics of the network and to have a clear idea about how this innovation will help to improve the system.

«We want to know how your function can help the community, what strategic purpose. Functions that meet all the parameters and have clearly defined requirements, pass our test and are forwarded to the implementation stage», — the document says.

«Russian hackers» and their hidden mining zcash for

Despite the positive news from the developers, zcash for experiencing some problems with the production of coins. More precisely, in its system, the provider of Internet security McAfee Labs has detected a new variant of the malicious software for cryptogamia. As stated in the company blog, malware called WebCobra, created by «Russian hackers», and uses the CPU power of infected devices for covert mining zcash for (as it acts in Monero).

Through covertly installed special equipment Claymore malware WebCobra is downloaded, and then run the miner for zcash for extraction from a remote server. Application programs found in devices around the world, most in Brazil, South Africa and the USA. Find and calculate WebCobra is virtually impossible. The only figure who can speak about contamination mining-the device is its low performance with high energy consumption.

However, zcash for not only coin, which was faced with the problem of covert mining. Earlier, the Cyber Threat Alliance (CTA) reported that in 2018 the use cases malware invasion system and mining bitcoin has become almost a 500% increase. Programmers have compared the growth of these indicators with the widespread epidemic that soon will spread to other mining devices.


The Hyperledger project included modular cryptographic library Ursa

Steering technical Committee approved the Hyperledger project Ursa, modular cryptographic library for developers of solutions based on the technology of the distributed registry.

As stated in the Hyperledger, as their growing project needs in more complex cryptographic solutions. One of them is to become Ursa, which will help in the transition from the implementation of individual protocols to work with shared library.

The project is to prevent time wasting that occurs when working on the duplicate solutions, as well as to improve safety by simplifying the analysis and reducing the likelihood that less experienced users create own insecure implementation.

It is also assumed that Ursa will provide expert assessment of all cryptographic code and will simplify cross-platform compatibility, since the project will use the shared library.

The library itself is divided into two small groups: the first contains a simple, standardized, modular cryptographic algorithms, the second – «more exotic cryptography». As examples of the latter is indicated, for example, SNARKs, and aggregated signatures.

Ursa code written primarily in the language of Rust, however, will also support the interfaces of all the languages that are commonly used in Hyperledger.

We will remind, in October it was announced the partnership between the Hyperledger Project and Enterprise Ethereum Alliance. Its aim is the creation of uniform standards for corporate distributed networks developed by members of these two organizations.

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The U.S. Treasury has called on global regulators to unite in the fight against cryptocurrency fraud

Deputy Secretary of the Treasury for financial intelligence and terrorist activities Seagal Mandelker called upon the regulators of all countries to follow the example of the American authorities and develop measures to combat crime with cryptocurrency. This writes CoinDesk.

The official noted that us regulators monitor the financial activity is not the only cryptocurrency companies, but we also deal with criminals on an individual basis.

«We consider this a priority issue in our international work, including Group development of financial measures of struggle against money-laundering (FATF)», — said Seagal Mandelker.

She added that the suppliers associated with the digital asset services it is necessary to take measures that will help avoid fraud and crime with cryptocurrencies. In particular, not to provide services to individuals who are in the sanctions list.

«Financial institutions must structure its activities so as to eliminate risks and abet such criminals,» Seagal said Mandelker.

A similar idea was expressed by the head of the International monetary Fund (IMF) Christine Lagarde.

«New ideas, including a cryptocurrency that can be used by cybercriminals to direct financial flows to the illegal activities around the world. This is not a problem of one nation or one government. This can be solved only through international cooperation,» she said.

ForkLog previously reported that the U.S. Treasury for the first time included in the sanctions list of the bitcoin addresses associated with two residents of Iran.

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In Finland looking for new ways to store and implement the previously withdrawn 2000 bitcoins

The Ministry of Finance of Finland must decide how to deal with 2000 bitcoins seized by law enforcement agencies for the period from 2016.

Announced by the government requirements that were in Bloomberg News does not allow you to store bitcoin on virtual exchanges, and recommend to place it without access to the Internet. While state agencies and departments should consider bitcoin and other cryptocurrencies as assets and not money, and can’t use them as a means of payment or investment.

However, confiscated the tokens must be converted to euros, for example, through public auctions, if the court’s decision does not provide for their return to the owner. Cryptocurrency exchanges, according to the Ministry of Finance for these purposes are not suitable as unreliable and opaque.

Recall that in late November, the service of financial-budgetary supervision of Finland warned investors about the high risk of ICO and cryptocurrency. But researchers from the Bank of Finland has previously called the infrastructure of bitcoin is “revolutionary”.


Coincheck will begin the payment of compensation to the victims of the hacking next week

Japanese cryptocurrency exchange Coincheck has confirmed that it will pay compensation to users affected by the January break-in, next week.

Director-General Koichiro WADA (Koichiro Wada) and chief operating officer Yusuke Otsuka (Otsuka Yusuke) said at a press conference that payments will commence towards the end of the week, more information they promised to provide in coming days.

At the end of January, the Coincheck has confirmed the rumors about the large-scale theft of 526 million NEM tokens worth more than $530 million at the time. While it remains the largest theft of cryptocurrency in the history of the industry. Coincheck said that will compensate for the lost funds all 260 thousands to affected customers.

After the lifting of the ban on the withdrawal of Fiat funds in February brought customers for the first day $373 million Exchange then confirmed that compensates for the stolen tokens for $0,83 per coin.

Japanese Finance Minister Taro ASO (Taro Aso) after hacking Coincheck demanded cryptocurrency exchanges systems strengthening cyber security and internal control. The financial services Agency of Japan (FSA) raided the offices of Coincheck and start checking kryptomere in the country, including the on-site inspection.

According to the results of the first wave of inspections the regulator has temporarily suspended the work of two exchanges — FSHO Bit and Station. They and four other companies — Tech Bureau, GMO Coin, Mister Exchange Coincheck — have until March 22 to give the regulator written reports on the improvement of security systems. In addition, for Coincheck regulator will issue a guidance document on business improvement.

The country has 32 cryptocurrency exchanges, but only 16 of them registered in the FSA. Coincheck is among those who still hoped to obtain a license from the regulator after completing all requirements. The exchange’s management has confirmed that the platform will resume trade in certain cryptocurrency next week.

The company suggests that the theft of the cryptocurrency in January occurred due to the fact that hackers broke into the employee’s computer using malware.


The experts gave recommendations for the protection of cryptocurrency assets from criminals

At the conference, with the participation of 170 leaders of the cryptocurrency world organized a panel discussion on how to deal with threats of robbery, extortion and kidnapping against the owners of virtual currencies.

The explosive growth of the prices for cryptocurrency in recent months, and anonymous nature of their transactions led to an increase in the number of violent crimes against their owners.

In January in Thailand, young couple Russians under threats forced transfer $100 thousand bitcoins to a specified wallet. As described later summoned on the scene by the local police, they approached victims asking for help to trace the recipient of cryptocurrency, because they know better than bitcoin. But got the answer: there are no such ways.

In the UK armed criminals forced the trader to transfer cryptocurrency to a specified wallet. Earlier in Turkey at 450 bitcoin was robbed businessman.

For the liberation of the kidnapped in Ukraine, a leading analyst of the crypto currency exchange EXMO, was allegedly paid a ransom of $2 million, again in the cryptocurrency.

Most often anonymous nature of cryptocurrency transactions makes it difficult to solve crimes, if they themselves are the attackers remain unidentified. In Thailand, for example, the police managed to track the laptop victims to Kuala Lumpur, where the criminals got rid of him. This investigation is stalled.

“Now it is becoming more common and affects more and more law enforcement units that are engaged in organized crime and violent crime at the local level,” says Jonathan Levine (Jonathan Levin), founder of analytic company Chainalysis.

The possibility of protection against these threats and discussed by experts at a conference “Round table Satoshi” in Cancun (Mexico).

Most security professionals agree that the best measure to ensure safe storage of crypto-currencies, currently, is the use of wallets with multipoles.

Another possible measure mentioned by the experts as “alarming” wallet containing a small amount of cryptocurrency and is able to distract the criminals from the major wallets. It might work if the attackers do not know the sizes of cryptocurrency assets of the victim.

For this purpose, and in order to avoid the attention of attackers, the panelists advised maximum secretly keep information about their financial success.

Jonathan Levine also mentioned that the programmers are already working on the wallets with a built-in source of stress. As used by banks strong coercion, the initiation of this code shall inform the security service and law enforcement agencies that the transaction is made under duress.