In Odessa will be judged a suspect in the robbery of captainvalor

In Odessa the court received the indictment of the local Prosecutor’s office No. 2 against one of the suspects in the robbery of a potential captainvalor, who in January of this year he was beaten and robbed in the total amount exceeding UAH 1.5 million during the transactions of buying bitcoins.

It is known that the accused rented an apartment on the street of General Petrov, and appointed a meeting there for allegedly conducting transactions with the victims. However, instead of implementation of the agreements he and accomplices beat the victim, took his money, jewelry and mobile phone.

According to media reports citing press-service of regional Prosecutor’s office, suspect in custody without the right to bail, he is charged under article about robbery (part 4 of article 187 of the criminal code) and the identity of two participants in a robbery at the moment installed.

Recall that in Ukraine in 2017, 4 times as kidnapping and ransom in bitcoin. And the head of the Department of police of National police of Ukraine Sergey Demediuk in January this year asked to determine the status of cryptocurrency in the country or deny them.


Stratumn completed pilot testing of a blockchain-based platform for insurers

French blockchain startup Stratumn announced the completion of a pilot proof-of-concept platform for insurers, which was attended by 14 companies.

The experiment was conducted by the French Federation of insurers with the support of the consulting company Deloitte.

The purpose of the testing was to study the possibility of using the blockchain to manage insurance documentation in accordance with the new law that allows customers to change insurers at any time after the first year of the contract.

The system also aims to provide the customer data are processed according to the rules set by the Main regulations on data protection in the EU, which will enter into force in may 2018.

«We firmly believe that this technology in combination with advanced methods of cryptography are able to simplify the processes with the participation of several companies to the benefit of all parties involved,» said co-founder and head of Stratumn Richard Caetano.

We will remind that at present the large insurance companies are actively exploring the use of blockchain technology.

In October, insurance blockchain-B3i consortium has inducted 23 new members, including such major groups such as AIG and AIA. Now the group has more than 30 insurers and reinsurers.

And earlier this month, Allianz Global Corporate & Specialty (AGCS), one of the world’s largest insurance companies, announced the blockchain-a prototype based on the decision of Hyperledger Fabric 1.0, focused on the use of captive insurance policies.


Experiment «a Million a year for bitcoin»

The essence of my experiment is very simple – is it possible during the year to make a million dollars by investing 1 bitcoin in a week in different projects.

Stunts performed by stuntmen! Do not try to repeat!

Projects I plan to take both new and already quoted on the stock exchanges. There is no sense to be limited, because the potential can be revealed after the ICO.

The main condition will be that I can’t sell the coin earlier than one year after purchasing it. Even if she has already gone to zero, I will still endure. Because your head prior to the transaction, and then no fuss.

Soon I’ll make a separate plate to mark all projects, purchased, date, cost and other comments.

In the channel of my posts on this topic will be marked with a tag #52BTC.

What else is important to understand? When I say a million – of course, I mean dollars, but not in them, and the exchange rate on 1 October 2018. And again, not just the entire portfolio should be worth a million, namely the growth of investments.

I plan a lot and plenty do reviews what I will go and publish it all in the channel. But don’t expect deployed related – I’ll mention only what I like or not. Will try and keep it quick conclusions.


Just for the history of yesterday, a bitcoin was worth $4300, and 52 pieces, then weigh $223 600. That is my ambitious plan is 5x per year. I feel like saying: – Why did I get into this?!

Why will I make it?

The market for blockchain projects is a new world. The Internet has made public almost any information, and for 20 years has created hundreds of billions of dollars in companies that did not exist previously. Blockchain changes the shape of the storage and management of capital and property. People take yourself in control of what is rightfully yours.

My role is simple – to see the projects to select the best, to buy the tokens/currency.

Blocking atomized investments, he made crowdfunding accessible to everyone, now nobody can forbid me to buy even at the $1 part of the project, which seems promising. This approach allows the real geniuses who need funding fast to get it. It is not the one who can beautifully convince investors, and the smartest.

And to sweeten expectations – my bet is that the cue ball in the course of the year will touch around $10 bucks apiece, so I just 2.5 x needs to be done.


Later I will write some other ideas for how I select projects. This document will be constantly updated!

Thank you for your attention

your uncle Scrooge!

P. S. don’t forget to subscribe on my channel about cryptocurrency and the blockchain

Just kidding, you already signed for it I suppose!


British intelligence warned that hidden mining can be a constant source of income for owners of web sites — #DeCenterDaily

Roger Ver, an ardent supporter of Bitcoin Cash, said that still holds a bit of Bitcoin in your wallet.

British intelligence warned that hidden mining can be a constant source of income for owners of web sites.

On Tuesday the national cybersecurity center (NCSC) — technology wing of the Center for government communications UK — has published a report «the Cyber threat to British businesses 2017-2018», which States that a hidden mining is causing «significant» concerns of the government. According to the document, last December from similar attacks suffered by 55% of businesses worldwide. As one example, the Agency cited a hidden mining, monero, which was carried out via a browser-based miner Coinhive. In 2018, the attacks continued, according to British intelligence, more than 4,000 sites mainile cryptocurrency using hidden from users of the plugin, which notice mining is possible only by reducing the performance of the device. «Way of implementing the miners via malware has been used for a few years, but probably in 2018 or 2019 one of the major threats will be a new way to mine cryptocurrency via website visitors,» — said in the report. The Agency reported that, according to his assumptions, the «most hidden of mining is carried out by cyber-criminals, but the owners of the sites is also seen in attracting visitors and using the power of their CPUs without their notification or consent for the purpose of extracting financial gain». In particular, to such sites, the Agency classifies the online edition of Salon, which in February announced to users that due to lack of revenues from traditional advertising, the website asks visitors to provide «a small percentage of available computing power» (in this edition promised to «automatically detect current consumption of computing power» on the user’s computer and to take only «unnecessary energy» without thus affecting performance). NCSC called for the use of ad blockers and antivirus software, which include protection from stealth mining.

Vice-President of the European Commission urged to invest in the blockchain.

On Tuesday, during his opening speech at the Bottom of digital technologies in Brussels, Andrus Ansip called the technology of distributed registry one of the «areas in which Europe can best be able to take a leadership position,» noting that «it is necessary to contribute to the digital future of Europe» and to invest more in techsector. Ansip noted the investments of the European Union in the blockchain, artificial intelligence and digital health, but stressed that the EU alone cannot provide sufficient funding. Blockchain «on the way from laboratories to the masses: we should make the most of this new opportunity,» he said, urging governments and the private sector to take an active part in funding startups. Among the recent initiatives of the European Union — launch of the blockchain Observatory in partnership with ConsenSys provider of financial services on the Ethereum blockchain. The new organization plans to invest in the blockchain projects of €340 million ($425 million). And on Monday, April 9, 22 EU countries signed the Declaration on the establishment of European partnerships in the field of blockchain technology.

In Australia there is another licensed crypto currency exchange.

The Australian reporting and analysis centre transactions (AUSTRAC) has approved the application Blockbid — third cryptocurrency exchange, which was registered in accordance with new regulations, approved on 3 April. The main feature of the platform was to provide users insurance against potential cyber attacks. Also in the next 6-12 months, the exchange plans to introduce support for at least seven Fiat money, four of which will be available in the next beta launch. «From the very beginning when you create a platform Blockbid always put first the safety and tranquility of its customers, allowing our customers to trade with confidence. How was Australia’s cryptocurrency exchange, we intend to open their doors to traders and investors around the world who want to use legitimate platform for insurance assets,» said chief operating officer David Blockbid Supper. 16 April there will be the launch of the beta version of the platform that will be available for a limited number of users and will be tested without operations with this currency. After the developers will make necessary changes in accordance with the received message about the bugs, the beta version will be presented in the public domain. By this time it should trade five cryptocurrency (bitcoin, bitcoin cash, bitcoin is gold, litecoin and ripple) and four Fiat currencies (US dollar, Australian dollar, Japanese yen and Euro). In the future, the exchange hopes to add a wider range of altcoins, including air, dash, NEM, Digibyte and Nano.

Bitfinex has denied allegations of involvement in the laundering of Colombian drug cartel.

On Tuesday, in a conversation with CoinDesk Bitfinex has announced that it has conducted «an internal investigation» in offices around the world and found connections between their operations and two fictitious companies accused of cheating the Belgian government and money laundering in Colombia. «Based on all available evidence and information, the exchange concluded that these assumptions are false and baseless,» — said Bitfinex, also stressing that «is not subject to any official investigation conducted in any jurisdiction in the world on the basis of the assumptions stated in the Polish media»: «This indicates that governments have not found reason to rely on the accusations made against Bitfinex,» said the company. The exchange noted that its users also did not address the problems associated with access to their accounts or funds. Rumors about the possible involvement Bitfinex to the fraud scheme occurred at the end of last week when the media reported that the Polish authorities seized the assets of two shell companies totaling 1.27 billion zlotys ($371 million) and suspect them of money laundering, linked to Colombia drug cartel, with the complicity of «major cryptocurrency exchanges». Polish TV channel gave that fraud was carried out by companies registered in the city of Pruszkow, owned by «canadian with Panamanian and Colombian origin with Panamanian citizenship.» It is reported that in the course of fraud the crime was committed against the Belgian government, which is going to open a new Embassy in the Democratic Republic of the Congo.


What is «dust» and why the blockchain of bitcoin need a cleaner

The current bitcoin algorithm works in such a way that it is almost inevitable in the course of each transaction, the data is «split» into components, which in some point (especially when a small amount of the transactions) are crushed to «dust», forming such parts of bitcoin is that it is unprofitable to spend, because the transaction fee exceeds their cost. On the one hand, this is disadvantageous for users, the other for the entire blockchain such a cluttered space can lead to slow performance of the whole system.

And if earlier «dust» was not a problem for traders, this all changed when the entered the game fees, rather, when they have grown so much that performing everyday small transactions became unprofitable. So, in December, a collection of Bitcoin at its peak was $54.9. By the end of February, at the time of release IN the Bitcoin Core 0.16.0 with convenient features to create SegWit addresses, the fee has dropped to $2.8, and to date has reached the performance end of April 2017 — to about $0.84.

The decentralized applications developer Greg Slepak is sure that now is the best time to get rid of dust. «Such a chance may not happen again,» said he in a conversation with CoinDesk, referring to a record falling fees and lower interest in bitcoin. The next take-off may happen when Lightning Network — ofchain-processing solution for micropayments in bitcoin — is fully operational. «I think all of that leads to the growth of popularity of the blockchain, can lead to increased fees, which will be more than the dust,» — said Slepak.

Slepak describes the method by which users can get rid of the dust: they should combine all the «unspent transaction outputs» (UTXO) into one outgoing transaction. It should be understood that the bitcoins stored in the wallet than individual coins, namely in the form of «unspent outputs» — the remnants of the previous sent or received transactions. Thus, 1 bitcoin can imagine the amount of 0.1 BTC, 0.5 BTC, 0.2 BTC and other, smaller components — and so on until the «dust». The process of combining these parts in a single transaction can be represented in the form of an exchange of a handful of pennies, five-cent and ten-cent coins to one-dollar bill. However, the functionality needed to detect dust and getting rid of it presented not in every purse.

Slepak recommends that you use the Electrum wallet with a simplified payment verification (SPV), which requires less data to confirm the transaction and well adapted for mobile devices. The Electrum user can choose a certain number of addresses containing the dust, and click the «send» — thus self-selecting which parts of the coins to combine into a single output of a transaction. Such an operation allows the Blockchain wallet. However, some wallets do not imply this level of control, especially if cold storage according to the type of wallet Coinbase, which carries out the operation autonomously, independently deciding what unspent outputs it to get rid of.

Although the Slepak believes that it is time to «dispel the dust» in order not to lose money, he said that this should be done only if «implications from the privacy» will not be detrimental to the user. The fact that, owing to the public nature of the bitcoin blockchain in such «cleaning» the user risks to reveal their transaction history. To maintain financial privacy is extremely important not to reuse the same address, otherwise another user may with great probability be assumed that this address belongs to you: each time the private key is already used addresses «signs» the transaction, any recipient can trace the history of this address and get your information. However, this threat is significant only in the case if you have accumulated dust on several of his accounts, especially if one of those accounts has undergone KYC process on the exchange and the user has confirmed his identity. Thus, if one of the addresses associated with a specific person, all other addresses, keeping dust, when combined in a single transaction will also expose the identity of the user. «It’s like saying, «Yes, it is, these addresses also belong to me»,» — said Slepak. But if all «dust» is already linked to the same account, no new threats to privacy when forming a single transaction will not occur.

Less radical views in the matter of getting rid of the «dust» sticks to the database developer Blockchain Antoine Le Calvez. Published in March on Medium material, he notes that the amount of dust has decreased, and it was provoked by «uncomfortable» high charges Dec. Large companies working with bitcoin, looking for more profitable strategies and including resorted to getting rid of the dust. «Coinbase cleaned your wallet. And they were quite large «» polluter,» said Le Calvez, noting that since the extra «cleaning» creates less dust. Le Calvez believes that users can combine transaction described method for potential savings in the future, but only at will. In his opinion, the largest bitcoin company in any case will have a greater impact on the overall level of dust and «clean air» depends on them. However, Le Calvez agree that if the current level of fees in the Bitcoin network to simply clean the dust, but the situation will change when the number of transactions will soar again: «the Real test will be in the next lift,» he said.

Also significantly reduce the formation of dust can be the next version of Bitcoin, the release is scheduled for 2019. One of the major changes will affect the current selection algorithm of the coins, which, according to developers, inefficient unites the parts of the coins in the transaction and almost always creates «outputs for delivery» even when it can be avoided. New algorithm of «branch and bound» (eng. Branch and bound), developed by Andrew Chow and mark Erhardt, groups data more economical in terms of scalability, both in terms of fees: it is considering all the inputs, trying to find among them exactly the amount of bitcoins a user wants to spend. «Nobody wants the transaction was milled to dust,» says Erhardt.


The blockchain will replace your computer sooner than you think

Working with your personal computer, every user at least once met with problems related to data access: users have to transfer files to your mail to work with them to carry the laptop to have access to certain programs or to remember numerous passwords to use third-party device. Of course, for the solution of specific problems are already on the market various services, but they do not solve the key problem of the lack of seamless integration, not providing the work with additional devices. According to Kirill Shilov, co-founder of the service howtotoken, the blockchain can not only consolidate all services into one convenient solution, but will provide users with new opportunities.

Using a virtual machine

In General terms, computers can be divided into three components:

The functionality of the devices.

Data storage;

The use of specialized software to perform tasks.

According to Shilova, virtual machines emulators, the hardware will facilitate access to all three components, and in the future will completely replace the use of personal computers.


Using a computer, each user is limited to the capabilities of the device: to enhance memory, work on more modern graphics card or a faster processor, additional hardware is required and investments. However, working on a virtual machine, each user has access to all updates and programs and can independently choose the necessary one and pay only for their direct use, and not for the right of possession. For comparison, if the purchase programs for personal computer is similar to buying a house, the use of the software through virtual machines — it’s like a hotel room.

Data storage

For storing documents, many users today prefer to use cloud storage services — Dropbox, Google Drive, OneDrive, iCloud and Yandex.Disk, among many others. However, most users will use these services selectively, and most of the data still remains on the local computer. When using virtual machines, users have the ability to move all processes into the cloud, and through channels protected by cryptographic means, the access to it is only the user.

Application and

Today, there are countless programs and applications running on different operating systems is video games, programs, content editing and utilities, among other applications. The problem is that each program must be installed on each computer individually, and its version must meet the requirements of the operating system, be it macOS, Windows, Android, Linux. Working in a virtual environment, the user can connect to your computer and use their applications from anywhere in the world, while simultaneously solving the problem of choosing a specific operating system and work within its constraints. Because such programs are system independent, they will not have to reinstall from time to time on various devices, and user-specific settings will be saved automatically.

Blockchain as the operating system

The field of cloud computing, which includes providing convenient network access on demand to such services as servers and storage, databases, network equipment, software, Analytics and much more, evolving with 2006. However, its users still face problems of privacy and security, and the introduction of this technology is a costly process. According to Shilova, innovations such as blockchain network could not only solve existing problems and significantly reduce costs, but also to help in the further development of the industry.

The lack of centralized control

The current cloud-computing-based servers that are managed by different companies. These companies set prices for services that are sometimes 10 times higher than those offered by their decentralized competitors, working with blockchain networks. At the decentralized market, prices are set by demand and is directly dependent on the number of service providers.

Guarantee data access

Centralized providers of cloud computing services may face problem of power interruptions, which threatens a potential loss of funds. So, in 2017, the Amazon cloud service went offline for 4 hours, which resulted in numerous operating problems for hundreds of thousands of sites running with Amazon. Using decentralized network, user data will not be stored on a single server, and multiple nodes all network users who are responsible for maintaining the blockchain.

A higher level of security

The decentralization of the blockchain also ensures a higher level of security of the entire network. Compared to a single data center, such a network would be virtually impossible to crack. Moreover, without a physical location, the blockchain-a chain will not fall at risk factors such as natural disasters. Entrepreneur and author Andrew Medal said:

«Because the blockchain is a decentralized network, distributed among multiple computers located in different places and countries, it may not be vulnerabilities that could lead to hacking».

Is there any ready solution on the blockchain?

However, despite the obvious benefits, companies and private users are not yet ready to move from personal and local computer using a virtual machine, and there are several reasons.

First, many users are stopped by lack of easy access to virtual machines, designed for mass — often the required software is difficult to use, expensive or has a limited capacity.

Second, these centralized service providers like Dropbox, have the first mover advantage and are proven and reliable options, therefore companies are more willing to choose them, despite the fact that the decentralized solution would help users to save money.

Third, decentralized cloud services are in the early stages of development, therefore this market is not yet ready to fully meet the expectations of users.

However, according to research company Gartner, by 2020, the market for public cloud services will reach $411 billion, the highest growth is expected in the field of IaaS — computing infrastructure, where different components of the cloud services such as data storage, operating systems and network resources are provided as pluggable services. That is proof that the industry seeks to move from local computers to the more convenient and modern cloud solutions.

So, one of the largest developers IN the cloud, Salesforce is actively working on product-based blockchain, the introduction of which is planned for late 2018. And the company By the end of 2017 announced its readiness to transfer data storage with cloud services for blockchain and run a public decentralized network with a fully integrated store. At the same time one of the most popular FTP-clients FileZilla, in 2017, has partnered with decentralized data storage Storj. This system allows you to store information in blocks that are encrypted and distributed to «farmers» who play Storj the same role as miners in the Bitcoin network.

The more the market will appear of companies providing decentralized services in the field of cloud services, the faster to develop the sector, and with it we offer services and tools to work with virtual machines. Moreover, the high level of competition will help lower prices and more rapid development of this industry.


The SEC intends to «close» decentralized platform?

The SEC case against EtherDelta dated November 8, stirred cryptologist, as with many illusions about the fact that U.S. authorities «just contemplating the cryptocurrency phenomenon, but does not intend to impose serious limitations for him,» maybe I’ll have to leave. The recent statement of the founder of the Australian crypto currency exchange CoinJar Asher Tan, «in the U.S. blockchain projects are arranged so that do not allow interference in their activities of the us government», then looks naive.

Indeed, the us Commission on securities and exchanges in the framework of her powers reported about the institution of administrative proceedings against the trading platform EtherDelta, which describes itself as a decentralized platform.

Decentralization is a means, not an end

Can be a long debate about how EtherDelta is decentralized, however, should agree with the head of the Binance Caninum Zhao, who believes that decentralization is still not a goal but a means, which is intended to ensure the development of the fundamental principles on which are based the blockchain and cryptocurrency. In addition, planning to open decentralized platform a plus to a centralized Binance, Zhao correctly notices that «100% decentralization to achieve is basically impossible.» This is an important point, because from the perspective of the SEC, EtherDelta — this is a decentralized platform, but even if she is the same as «obedient» Coinbase, it would not guarantee the absence of claims from the regulator.

SEC explains nothing and accuses

Claims SEC seem obvious: the founder of the crypto currency exchange Zechariah Coburn, who opened it three years ago, were not related to its operating activities, but against him were investigated. The regulator found that the site was conducted trade in any tokens ERC-20 grade, it was violated U.S. securities laws: the SEC has not said what tokens she is considered for securities, whether the findings confirmed the successful completion of these assets Howey test, which is used as a «litmus test» for determining whether a particular tradable in the financial market the asset a security. After communicating with officials of the SEC Coburn, not formally admitting any fault, agreed to pay $300,000 to the us budget as compensation for the «illegally obtained profits», plus accrued interest in the amount of ($13,000) and finally, a fine of $75,000. Total payments were almost 12 times higher than average annual median wage in the U.S. economy ($32,423), but it could be higher if Coburn would persist.

The owner of the crypto currency exchange that does not charge any fees for the operations sought to save his project, which continues to work. But that means the claims of the SEC? Given that the United States has case law in the near future we will see dozens of administrative cases.

Advisor to the IMF for financial innovation Marco Santori believes that it is important to «read between the lines» of the charges against EtherDelta. He notes that the crypto currency exchange has been sold to new owners, not citizens of the United States, a «huge» amount to be paid was issued to Coburn. He also asks the rhetorical question: «And how many of the 3.6 million transactions with tokens are really violated American laws?» Santori, notes that the official document does not indicate that any illegal transactions.

In summary, Santori sees a big risk in this approach, the SEC has the opportunity to close any cryptocurrency platform, and in the case of decentralized platforms generally, it is not clear what these may be claims, as any restrictions for listing token is already one step away from the principle of decentralization, even if the head of such a crypto currency exchange like Polybird, Harish Gupta, does not notice when he says «built» in the organization «Chinese wall» that gives users the ability to trade only what’s allowed in the country of which they were citizens.

Decentralization needs to protect developers

Speaking about the case EtherDelta, a Washington lawyer Jake Czerwinski draws attention to the fact that it is «a great source of funds for the teams. ICO», except, unexpectedly, the regulator said «a user-friendly interface at the site», however he expects that in the future there will be more of these processes in relation to all types of cripture: «SEC is the same pattern: start first with a simple guy and crypto currency exchange, and then eventually look at large Central sites, which, we think, all is well; moreover, the regulator will seek to reach and to foreign cripture». I agree with him his colleague, Larry Cermak claiming that the SEC will set themselves such a task, but to execute it will not be easy. Czerwinski also notices that «decentralization protects the software, not the developers, who also need proper protection».

New York analyst Nathaniel wittemore believes that such actions of the SEC will lead to the fact that «more and more of the founders of decentralized trading platforms, as well as other cryptocurrency projects, would prefer to remain anonymous.» Colleague Whittemore, Katherine Wu, adds, «my assessment of future developments is not superpositive». She believes that all decentralized sites in accordance with the SEC interpretation of us law will need to obtain the status of brokerage company, that is to pass the appropriate licensing.

«The easiest conclusion» of the situation with EtherDelta?

If Wu thinks this is unfair, crypto-enthusiast, Anthony Pompliano that since July became a partner at the investment company Morgan Creek Capital, insists that without compliance with the securities laws of cryptocurrency will not be able «to develop rapidly and to have a transformative impact.» His opinion supports the lawyer Stephen Palley, who believes that it is not necessary to hide from the SEC, if trading in securities, and to comply with all regulations and that it is «the easiest conclusion from the situation of EtherDelta».

Crypto-analyst James Spediacci, on the contrary, says that we need to see significant benefits on security of cryptocurrency which is decentralized trade decisions, and they need to appreciate that they do not create constraints on the start and trade tokens, and he believes that they should not in any way engage in the provision of custodial services, that is, storage of private keys. He also offers to think about how to make such platform «sustainable» in the face of such biased «persecution» by the SEC.

The attack on cryptocurrencies on all fronts

Unfortunately, lately it seems that the US government «took the offensive» against the cryptocurrency. Thus, the local securities Commission in the state of Colorado sent a «Hello» to the newly elected Governor Jared Polis, a well-known supporter of the cryptocurrency, declaring the compulsory termination of the preparation for the launch of four ICO due to the fact that the Agency has already spotted buried in the tokens of the securities. In Texas colleagues Colorado officials stopped the activities of mining companies AWS Mining PTY LTD, accusing it of «selling unregistered securities».

What is happening in the United States, has elicited a response from financial regulator BaFin in Germany, which decided «to restrict trading in the securities of» British cryptocurrency of the organization Finatex Ltd., showing that Europeans as well as Americans, are willing to use the principle of extraterritoriality in the application of legal norms. The fact that powerful States will use this principle, pursuing and striving to close the decentralized crypto currency exchange where they were, confirmed by a specialist in the field of computer security bill Barhydt.

As a US citizen, and arguing that decentralised solutions are becoming the basis for cryptocurrency banks, which are replacing traditional credit decisions, he makes the proviso that such initiatives American crypto commands will work in all countries «except for those countries which are under sanctions of the OFAC, Department of the Treasury of the United States» thus making it clear that such States ends cryptocurrency freedom, determined the political attitude of Washington to the other States.

A departure from the decentralization threatens the backwardness of the economy

Anyway, it is obvious that decentralised solutions on the blockchain is something that will exist as the Internet, which is impossible to close, and trying to dissociate itself from him would mean the deepening of economic backwardness — that began to understand even in North Korea, gradually opening the country «the global web». SEC attempts hurriedly to restrict the activities of cryptocurrency sites on the basis of non-public interpretation of the American securities legislation, creating problems not only for these platforms, but also for the U.S. economy as a whole. Every such decision of the SEC as taken on EtherDelta, is another incentive for outflows from the cryptocurrency industry in the USA in this sector in other countries. These and other changes in the behavior of us regulators, such as FCC, which abandoned the principle of neutrality poses a threat to «everyone who has a computer and wants to do could have a chance to capitalize on their inventions billions of dollars», to worry about one of the creators of the social network Reddit Alexis Ohanian.

Unfortunately, at the level of large international financial organizations such as IMF and Bank for international settlements, is also dominated by a repressive approach to new financial technologies. Hence the hard saying of Robert Cohen, the head of the new division the SEC on cybersecurity issues when he wants to emphasize that there is nothing special about decentralized approaches to trading assets there, and the main thing is trade.

Such decisions do not look to the end ill-conceived as, for example, is highly controversial on the effectiveness of the attempt to block the messenger Telegram in Russia. All participants in the cryptocurrency market have to look for a common point to the blockchain and cryptocurrency to realize their potential, which allows, as noted by one of the Ethereum founders, Joseph Lubin, «to raise the level of welfare in society.» In this case the desire of the crypto community «to see the growth of the cryptocurrency market at any price» should not lead to lost main meanings for what appeared blockchain and cryptocurrency, which is reminiscent of John McAfee.


Black is equal to white, or the European Union + blockchain: what you can close your eyes for everyone’s idyll

General rules on data protection (GDPR) was adopted by the European Union in 2016 and entered into force on 25 may this year. It strengthened protection of personal information of citizens of the EU and has extraterritorial effect, that is, its requirements apply not only to companies registered in the EU, but also on those who process personal data of residents of EU citizens, regardless of their location.

Difficulties of terminology

GDPR is intended to protect personal data, and the concept of personal data has a very broad definition. In fact, it is any information that is associated with an identifiable individual (the latter in this case is the subject of personal data). However, such information includes the encrypted data and the data of the persons, hiding under a pseudonym.

A small loophole and indulgence lies in the fact that the requirements for personal data protection shall not apply to anonymous data of the users. However, the scope of the fully anonymous services are too limited. Although the blockchain and cryptocurrencies continue to be associated with increased privacy and protection of financial information from prying eyes, a lot of important players in the crypto space on the path of compliance and regulatory transparency. Such a large exchange like Coinbase, Poloniex, Kraken, Gemini consistently improve relations with the securities Commission of USA (SEC) and receive a broker-the traders ‘ license, which, on the one hand, allow the exchange to expand the list of trading instruments and do not «fall into disgrace» as an illegal ground, and the other — involve the disclosure of user information.

Regardless of jurisdiction, whether the SEC, FINRA or the European institutions — the registration requires the organization to comply with KYC laws (know your customer, or «know your customer») and AML (anti money laundering, or «combating money laundering»). Both of these tools came in the crypto industry from traditional banking and stock market regulation. KYC within a financial company must identify its client and verify certain information, including personal data, the probability of involvement in illegal activities and the legitimacy of the funds in the account.

As for AML, in April 2018, the EU Parliament approved new measures to combat money laundering which will be applicable to the cryptocurrency sector. The rules said that the crypto currency exchange will be required to verify all users, from traders to the providers of cryptocurrency wallets. That is, all providers of blockchain services to register. Through total control of all market participants, parliamentarians «will put an end to the anonymity associated with virtual currencies and stock markets», the report said.

In such circumstances, to offer popular, in demand and at the same time guaranteeing complete anonymity of the cryptocurrency service impossible. Therefore, those wishing to survive to players of the crypto-space will have to make friends with the rules of the GDPR.


Two basic principles, implied GDPR, — accountability and protection of personal data.

Accountability when processing personal data implies that persons involved in processing data are divided into «controlling party» (controllers) and «processing side» (processors). Controlling are the ones who determines the «purposes and means» of data processing. Machining — those who follow the instructions of the controlling party and processes the data on behalf.

GDPR requires that these roles were distributed in advance, and then the parties must enter into a contract that will specify their responsibilities.

As for the second principle, data protection, it is implemented in GDPR through the transfer of certain rights to the data subject (i.e. the user, the real owner of your own personal information). So, the data subject has the right:

To request access to information about themselves that is available to the company;

Ask them to correct the information if it is incorrect;

Request to remove certain information if you do not want the company owned the name.

The second and third paragraph of the section on the protection of the obvious conflict with the nature of the blockchain, namely, his immutability.

In fact, as explained by Dave Michaels, employee of the Research center with Microsoft cloud computing and a member of the Cloud Legal Project at the University of London Queen Mary, «the data on the blockchain is actually not immutable — they just difficult to change. The nodes jointly control all copies of the blockchain. They can change the data stored on the circuit, moving to a new version of what is called a fork».

Michaels examines the process of compliance with the GDPR to the specific example. He proposes to submit a hypothetical blockchain, which will help to verify the authenticity of the information in the summary — namely, a degree. For example, a group of universities designed a blockchain. Each University owns the private key, and each degree, which assigns the University to its students and recorded on the blockchain and secured by this University. Accordingly, the employer can see this information on the chain and verify the authenticity of the information mentioned in the resume.

While academic degrees contain personal information. Accordingly, the creators of blockchain needs to provide such a structure which would not have violated the requirements of the GDPR for the protection of information. The developers have two options: to create a public blockchain (public) or closed (private).

In the first case, anyone can download it and run it on your device. In this case, it is a device that stores a current version of the blockchain, will be the Noda and will be included in the network of other such nodes. It is on this principle does bitcoin work. The larger the node, the safer the network, so it is more resistant to centralization, attack 51% and the other attacks on the principle of double spending. However, this scenario is very complex in terms of compliance with the GDPR.

The aspect of accountability

In this case, the problem is that the universities that developed the blockchain, not necessarily handle personal data. Do all the nodes of the network. But the nodes do not control the network.

It turns out a confusing distribution of roles, which is hard to find «responsible» — the controlling and processing parties — as required by the GDPR. Universities cannot be considered the controlling party. Michaels draws an analogy with the restaurant. If you imagine the controlling party as the commander of a restaurant chef, the universities do not meet this role. Rather, they «published a book of recipes, which everyone can cook at home».

Under this system, it is not clear how to determine who controls and who handles and how to conclude between them the necessary GDPR agreement obligations.

The aspect of protection of the rights of the data subject

«Suppose I don’t want my degree was stored on the blockchain. As universities will satisfy my request for deletion?» writes Michaels.

To do this, they will have to convince each node that we remove this information from its local copy of the blockchain. And even if all nodes agree to do this, delete data from a specific block will change the hash of that block. This will be confusing to hash the pointers that connect blocks in the chain.

And here Michaels goes to the second option, which was the developers of blockchain, namely: create a private blockchain, which will make compliance with the GDPR in practice much more simple and real.

In this case, to control the blockchain will only be the developers themselves (or approved persons). They will manage nodes of the network, which can be run on their own devices or rent a place in the cloud. In this case, the nod would most likely be much less, but between them there will be better communication and coordination.

The aspect of accountability

When the system of private universities set up the blockchain and run them together, accordingly, they may be deemed to be the controlling party. Cloud services provider (if any) can be considered the manufacturing side, because it processes the data (provides computing power) on behalf of the universities. Universities and the cloud provider sign an agreement of commitment. Thus, the GDPR to demand accountability and a clear division of roles observed.

The aspect of protection of the rights of the data subject

The three main actions that must allow to perform blackany to meet the requirements of the GDPR on this point:

Search for all examples of the use of personal data relating to a particular individual;

To extract data and provide them to the individual in a portable format;

To edit or delete data at the request of the individual.

The last item is natural is the biggest problem.

How to remove data from the blockchain

If all the universities agree, they may remove certain data from the block. Although this will be ruined by the hash pointer, connecting blocks, universities can simply refresh the links between the blocks, making new hashes. Because in private blockchain dispensed algorithm proof-of-work, this process does not require high computing power.

In this case, the credibility of the information stored on this blockchain, rests only on the credibility of the controlling universities. However, according to Michaels, there are ways to create bestrasova of blockchains, which will allow you to remove the information while maintaining the integrity of the blockchain (privacy by default, or «privacy-by-design»).

The first method to accomplish this uses encryption. In the above example, the universities could encrypt each record with its pair of private and public keys and store data in the circuit in encrypted form. Instead of deleting the encrypted text, the universities can just remove attached to it a public key. Thus, although the cipher will still exist on the blockchain, access to the hidden data behind it nobody else will. The question is whether such information is remote according to the GDPR, remains open. But at least according to the laws of great Britain considered, says Michaels.

The vulnerability of this method lies in the possibility that public keys can be stolen before it was deleted. Given the examples, when a hacking attack went unnoticed for several years, it is impossible to be sure that your public key is not compromised and is not stored «in inventory» of a party that is interested in your data or your funds and would use the stolen key in the desired time. Another threat, which almost inevitably will become real at some point in the future — quantum computing, who will be able to break any cryptography, and thus to release the locked personal information.

The second, more reliable method of removal of information involves the use ofcan storage. Universities can obtain a hash for a degree, they want to confirm inserting it into a hash function. Then they can store the resulting hash in the blockchain, and the degree (with all it contained personal information) offscan. Deleting information stored in offcine, not a problem, and in this case, after removing the required data will remain in the blockchain only in the form of a hash. One of the characteristics of a cryptographic hash is irreversible, that is, «for the given value of the hash function m must be computational infeasible to find a block of data X for which H(X)=m». Therefore, even with a hash, it is impossible to obtain encrypted thus information.

As with the first method, it is unclear whether this method is a full removal of information in the GDPR, as anyone who owns the original data, can create the same hash function to associate it with stored on the blockchain hash and thus to disclose the identity of the data subject. Michaels notes that this problem can also be resolved by adding a random sequence of values — nonce — personal data. This will provide protection in the condition that nonce will not be compromised.

Regulators are also trying

In late September, the national Commission on Informatics and liberties of France (CNIL) released official guidance for interaction between GDPR and the blockchain. Experts have identified several important aspects that clarifies this guide:

1. In the case of blockchain solutions to the controlling party may be deemed to be the users themselves, i.e. the subjects of personal data

Guide CNIL distinguishes an additional category of «participants,» which includes those who carry out transactions on the blockchain, that is, has the right to write data to the blockchain and send them for validation to other network participants (miners and operators gcd). As these parties themselves determine for what purposes will be processed personal data and choose means of their processing (the blockchain), according to CNIL, they act as the controlling party.

As noted by Laura Gelle, one of the leaders of the blockchain-division of the law firm BakerHostetler, this part of the manual CNIL will have a significant positive impact on the blockchain solutions for identity, which transmit the control over personal data out of the hands of corporations in the hands of users.

2. Cryptocurrency exchanges are also a controlling party

According to the guidelines of the CNIL, the controlling party is either a natural person who processes personal data for professional or commercial purposes or a legal entity that records personal data on a chain. «A natural person who is involved in the purchase or sale of bitcoin… may be considered the controlling party if it carries out these transactions as part of professional or commercial activities [and works] with other accounts of physical persons», — the document says. By this definition, cryptocurrency exchanges directly fall under the definition of controlling party in the GDPR and, accordingly, shall be subject to all the rules of the controlling party.

3. Miners or operators in the GBR are the manufacturing side

The CNIL guidance suggests that any party supporting the transaction or writes data to the circuit, thereby performs processing of personal information. Because individuals or businesses who are miners or of the operators gcd, should be considered as processing parties.

4. The blockchain is compatible with the required GDPR-right to remove information

CNIL offers another way of «destruction» of personal data stored on the blockchain, namely: to make access to the data practically impossible, «thus approaching the effect of data destruction». In addition, the guidance indicates the possibility of destruction of the private key or the value from which is generated an encrypted or hashed result. According to the authors of the document, this will be «enough to anonymize cryptographic commitments in such a way that they cease to possess the quality of personal data». Given that this method is «limit access» to information by destroying private key described Michaels, France joins Britain in a number of countries that equate the restriction of access destruction of information and consider it sufficient to meet the requirements of the GDPR.

5. The participants of the private blockchain must choose one participant which will be the controlling party. Otherwise it will be assumed that they exercise joint control.

In the case of data stored on the closed (private) blockchain, controlled by enterprises are the ones that define the purpose of processing and entering data onto the chain. For them, the CNIL leaves two options:

Create a legal entity in the format of the Association;

To choose one person who will make decisions for the protection of personal information.

If the group does not choose one of these options, is subject to the principle of joint control, that is, each participant will be held responsible for the personal data of all participants of the given platform.

6. The developers of smart contracts can choose their role and to be either controlling or manufacturing side.

The manufacturing side they will be counted if they develop smart contracts at the direction of a third party.

This aspect is covered in the manual for example, a particular smart contracts, launched last year by the insurance company AXA. In this case, «the developer offers the insurance company a solution in the form of a smart contract that allows the company to automate compensation to passengers when their flight is delayed. This developer will be deemed to be a party which processes the data, and the insurance company is the controlling party,» reads the document.

7. Any business that wants to use the blockchain technology, should carefully evaluate privacy considerations before launching your decision.

According to CNIL, the organization that develop or use blockchain solutions, should set the requirements for the protection of personal data is paramount, while respecting as GDPR compliance requirements and minimize potential harm to users.

CNIL encourages companies to start with a question, whether is necessary the blockchain in their particular case, or the same result can be achieved with traditional centralized media. In the leadership of the CNIL noted that «the blockchain is not always the best technology for data processing. It can cause difficulties for the owner [of data] subject to the requirements of the GDPR».

8. Private blackany need to set the minimum number of node to protect the integrity of the data

CNIL encourages the operators of the block chain be aware of the threat of attack 51%, in which the party that controls more than half can see, can manage the transaction and, in fact, all bloccano. Because the manual advises to introduce a mandatory requirement on the minimum number of nodes, which will be sufficient to eliminate this risk. Another aspect is adequate protection against collusion and consolidated control over the network (and therefore personal information), which can make operators of nod.

9. The personal data subjects should have the opportunity to challenge the results of executing the smart contracts. How, is unclear.

As noted by Laura Gelle, the CNIL guidance is inconsistent in the question of the extent to which the personal data owner can challenge the result of the executed smart contract.

According to one of the items, the user requires to enable it to intervene in the work of smart contracts, arguing that «the data subject shall have the right to human intervention to Express their point of view and to challenge the decision, after which the contract may be fulfilled.»

Thus, in the next sentence States that it is sufficient to allow the data subject to challenge the smart contract after his execution: «…requires that the controlling party has provided the possibility of human intervention, which will allow… the personal data subject to challenge the decision, even if the contract has been fulfilled.»

Thus, the moment of intervention of the personal data subject is not clear, but CNIL requires developers to provide the data owner the same level of influence on smart contracts.

10. Will exist «right» and «wrong» ways to use the blockchain from the point of view of privacy and security, and will subsequently be developed more regulations.

Gelle said that on 3 October 2018, the European Parliament issued a resolution entitled «Technology for distributed registry and blackany: building trust without intermediaries.» In it the technology of distributed registry is defined as «a tool that expands the rights of citizens, giving them the opportunity to control their own data.» The resolution calls on the countries belonging to the European Parliament, to promote the adoption and dissemination of technology. In her opinion, it is an indication that contrary to fears, the EU does not seek to limit the use of the blockchain, but wants to develop the most safe the scope of its application and even encourages its use.

Unsolved problems

With all the optimism of the approaches to reconciliation GDPR and blockchain hard not to notice that the requirement of removing information technically feasible. Then it all depends on whether behind GDPR parties to make concessions and to pretend that «loss of key» equal to completely remove encrypted using his information (although not equal).

Even more philosophical question is whether «mutable blockchain» bloccano? Here, again, it all depends on willingness to make concessions in terminology, but to make a step forward should the other side. It should be noted that the «true chiromancy», in particular, Timothy may not recognize private platform bloccano in the true sense. Although the trend of the introduction of closed corporate blockchains actively developed by a number of consortia, some members of the community these developments are already beyond decentralized space: «the Tension between anonymous and KYC-approaches is a key issue. This “decentralization, anarchy and odnorangovoj” against “centralization, privacy and backdoor” (part of the algorithm, which allows the developer to gain unauthorized access to the data and control the system. — DeCenter)… There are two roads: freedom vs. private and centralized systems,» writes may.


Hardwork Bitcoin Cash: war Craig Wright and Roger Faith, or hash rate against the crypto community

Upcoming hardwork network of Bitcoin Cash, scheduled for November 15, will be challenging for the community fourth of the capitalization of coins on the market. Many fear that as a result of upgrading the network will split into two competing chains, each of which will suggest a further development of the network. DeCenter figured out what the conflict is and what to expect from future updates of the Bitcoin network Cash.

The bitcoin cache was supposed to be an improved version of bitcoin, whose bandwidth has ceased to meet the growing demands of the market. Many users of the Bitcoin network saw the key problem in the limited block size is not exceeding 1MB. To solve this problem, kriptosmartfon was offered two options:

Bitcoin Unlimited to remove the limit of 1MB. This decision was supported by many miners since this way not only eliminated long queues of transactions, but also increased their profitability due to the growth of the total Commission in a block.

Segregated Witness (SegWit) — this decision implied the storage of data outside the blockchain. Instead, the information was recorded in separate files outside of the block chain. Thus in the same block can accommodate more transactions and speed of confirmations increases.

In the end, cryptologist came to a compromise in the form of minutes SegWit2x, where it was proposed to store a portion of data outside the blockchain, and block size to increase to 2MB. 20 July 2017 95%of miners voted in favor of the implementation of the Protocol SegWit2x, but without immediate increasing of the block.

In turn, the group of developers under the leadership of former Facebook engineer Amaury of Seceta announced the rejection SegWit2x in favor of the former structure of the blockchain, but when you increase the block size to 8MB. Your branch they called Cash Bitcoin, which was launched August 1, 2017, as a result, the hard forks of Bitcoin.

The problem hardwork Bitcoin Cash

About potential problems with the planned hardforum became known in August of this year, shortly after Bitcoin Cash celebrated his first year of office from the first cryptocurrency. The release of the new client Cash Bitcoin, called the Bitcoin ABC 0.18.0, suggested the introduction of a number of updates which included the ability to use smart contracts and atomically swaps the exchange of cryptocurrency without the participation of a third party. One of the main supporters of this update was the head and bitcoin Evangelist Roger Ver aka bitcoin Jesus. In support of the Bitcoin ABC also made such trading platforms like Bitpay, Coinbase and Binance and mining company Bitmain.

The separation of the crypto community followed after against updates made ABC Bitcoin miners network, head nChain and self-proclaimed Satoshi Nakamoto Craig Wright, as well as an entrepreneur and founder of the information website about cryptocurrency CoinGeek Calvin Eyre. In response to the proposed updates of the Wright and Eyre offered his version of the Bitcoin Cash called Bitcoin SV (Satoshi’s Vision). According to the official position of the developers, the release of Bitcoin SV supports «true vision of Satoshi», in this connection, this update proposes to implement the original Protocol of Bitcoin, and increase the block size up to 128MB (the size of the block Bitcoin Cash is 32MB), but also implies the implementation of the four opcodes Satoshi: OP_MUL, OP_INVERT, OP_LSHIFT and OP_RSHIFT. Primechatelno that CoinGeek owns the second-largest Bitcoin mining pool Cash.

The Bitcoin Protocol SV was supported by such major mining pools as BMG, SVPool, OKminer and Mempool and SharkPool — especially a neglected mining pool that aims to intentionally create empty blocks of other cryptocurrencies to resist unwanted fork Bitcoin Cash.

Moreover, Wright himself has declared war on everyone who supports any other Protocol hard forks and, in particular, Bitcoin ABC. He stated in a personal letter to Roger ver: «If you support ABC, then you hate bitcoin, you’re my enemy. You can’t even imagine what is in store for you. But you’ll know. I am the REAL Satoshi. Have a nice life».

Causes of conflict: hash rate vs of the crypto community

15 November will show which version of the Bitcoin network Cash supports most members of the crypto community. But since the implementation of the protocols Bitcoin Bitcoin ABC and SV are incompatible with each other, it becomes apparent that a split is imminent.

So, according to the Analytics service Coin.Dance, the Bitcoin Protocol supports ABC 600% more nodes than Bitcoin SV. Moreover, according to cryptocurrency exchange Poloniex, which on 8 November held a preliminary «pre-fork» futures trading on the bitcoin cache ABC (BCHABC) and bitcoin cache SV (BCHSV), traders preferred Bitcoin Protocol ABC. According to the official statement of the trading platform, this step gave Poloniex users the opportunity to Express support for one of the coins through trading activity.

In 12 hours of trading pairs BCHABC/USDC and BCHSV/USDC and BCHABC/BTC and BCHSV/BTC value BCHABC set at $465, and BCHSV — $109. Thus at the time of the trade users of the exchange invested $45,785 USDC (stablon Poloniex-backed US dollar) in BCHABC, while BCHSV received twice less — $21,988 USDC.

Coins BCHABC and BCHSV will be available to users after the network will the planned fork. While Craig Wright was confident that the experiment may ends in failure for exchange. According to the head of the company nChain, the exchange Poloniex has violated U.S. law, under which it is obliged to provide a derivative delivery of the underlying asset within three days after the sale.

@Poloniex, you know that speculative short selling is a criminal offence in the US… When you lose, we, together with our lawyers we will come for your corpse.

However, despite the choice of traders in favor of ABC Bitcoin Protocol, Bitcoin supporters SV is a large part of the hash power. This is evidenced by CoinDance, according to which pools that support Bitcoin SV, belongs to a large percentage of total Bitcoin network hash rate yet Cash — a total of more than 73%. While 66% of all miners of the Bitcoin network Cash support SV Bitcoin, while the Bitcoin Protocol ABC only 18%.

As a result, many members of the crypto community are concerned that the miners are led by Craig Wright can hold the so-called «attack 51%» which will only be confirmed by the Bitcoin block SV, and the ABC Bitcoin blockchain can be left empty, not having any committed transaction.

Chris Pacia, a leading developer of decentralized trading platform OpenBazaar, believes that in this way Wright attempts to intimidate cryptologist and achieve greater support: «Personally I am not against divisions and offices of Craig Wright, but he is threatening to destroy another chain the attack 51%. It is very unpleasant.» However Pasia sure that none of the trading platform will not give Ticker BCH as a reward for successfully carried out the attack, and coin BSV will forever remain a coin BSV.

Expert opinions

The situation around the hard forks of Bitcoin Cash is a concern of many members of the crypto community. So, co-founder and Cobra has shared his opinion with the followers on his Twitter account:

This is what happens when incompetent developers such as @deadalnix, push his own vision instead of a compromise. I’m tired of Amateurs and knuckleheads around BCH. Or work on the consensus, or don’t update at all.

The founder of Ethereum Vitalik Buterin urged not to succumb to provocations Craig Wright:

BCH community should not compromise with Craig Wright, to avoid the division and instead see an opportunity to collectively reject it and expel him from its ranks. Bitcoin Craig (BCC) can take the Ticker no longer exists cryptocurrency, successor he is.

And Peter Rizun, leading scientific developer of Bitcoin is Unlimited, I am sure that the conflict around the hard forks of Bitcoin Cash is reduced to power: «I would not want to participate in something that will contribute to the growing influence nChain and Craig Wright. Ultimately, this debate is not about technical components. It’s about power.»

In turn, very aptly described the ongoing conflict around Cash Bitcoin is a crypto-enthusiast and Explorer, Bitcoin Magazine Aaron van Wirdum:

It turns out that if you run the coin through hardwork without consensus, then sooner or later she will create a precedent for hard forks without consensus.


Moscow will host the event to celebrate the opening of cryptocurrency exchanges in Russia


December 6 in Moscow Russia Huobi will hold a private event in connection with the launch of cryptocurrency exchanges in Russia.

The event will begin with a press conference with the participation of official representatives of Russia Huobi. Among the speakers — the head of the Russian branch of Huobi, Andrey Grachev, head of the Department of entrepreneurship in Russian economic University after G. V. Plekhanov Hope Harsh and invited experts Huobi.

Entrance to the event is by invitation and prior registration.

The exact venue will be communicated the day before the event only for invited participants.

Find out more information on the official event page.

Download the app ForkLog for Android smartphones!