A study indicates that trust is an important factor in defining a token as decentralized. Only two BTC-pegged tokens are operational on DeFi systems.

Analysis indicates that Ethereum tokens, which are backed with Bitcoin, have a certain degree of centralization. In that sense, the study says that imBTC is one of the most centralized tokens to date.

The Defiant explains that moving Bitcoin into Decentralized Finance (DeFi) is something that could bring benefits to the ecosystem, in terms of liquidity. However, this represents a challenge as DeFi applications are mostly built on top of the Ethereum network. This has led to the creation of ERC-20 tokens, which are backed by the value of Bitcoin.

Several other projects of this type are under development, but wBTC and imBTC are the only tokens that are interoperable with DeFi. Both of them have custodial characteristics typical of centralized tokens. PBTC, renBTC, and tBTC are other tokens that have a 1:1 parity with Bitcoin. According to the analysis, they have less decentralized custody characteristics.

The study considers that trust is a way of measuring centralization within the systems of BTC-pegged tokens. For example, the trust in imBTC is directed towards Tokenlon, the company behind the token, since they are the custodians of the funds. Furthermore, even though an Ethereum smart contract manages the linking of inputs and outputs, Tokenlon is the one in control of the bridge between Bitcoin and Ethereum. Consequently, the control that Tokenlon exerts does not allow a price feed to exist.

imBTC after Attack on Lendf.Me

On the other hand, the study mentions pBTC, renBTC, and tBTC, which it considers decentralized projects. The main reason for this is a set of validators that must be coordinated to fulfill various functions of the system. For that reason, they must reach a consensus on their actions and approaches, resulting in trust assumptions.

Besides, they state that prices give information about the system, such as settlements, minting fees, token burning, and maintenance of guarantees. All these characteristics make projects fall onto a spectrum, which could be considered as decentralized.

Last April 19^th, hackers conducted an attack on the Chinese platform Lendf.Me, which resulted in the theft of USD 25 million worth of cryptocurrencies. Unofficially, reports indicated that the theft was related to a vulnerability in Ethereum’s ERC-777 standard. Furthermore, the failure may have originated after Lendf.Me was integrated with imBTC, which allowed the hacker to conduct the illegal operation with the supply of imBTC.

Mindao Yang, CEO of the organization behind the Lendf.Me platform, dForce, said that the ERC-777 (imBTC) continuing callback mechanism allowed the hacker to repeatedly deliver and withdraw imBTC before updating the balance.

This event has caused the Lendf.Me platform to remain inactive, at the time of writing this article. Negotiations with the theft perpetrator(s) are currently underway, but the event shows that there are still vulnerabilities that endanger the ecosystem, although DeFi platforms have great potential.

By Alexander Salazar

It is less than three weeks until the upcoming Bitcoin halving occurs. Experts predict that it’s hash rate distribution will return to its pre-halving optimized state.

Just a few weeks before the next Bitcoin (BTC) halving event occurs, anticipation seems to be growing as Google Trends data for the event show that online searches are reaching an all-time high. The reduction by half of the Bitcoin block reward will occur after that of Bitcoin Cash (BCH) and Bitcoin SV (BSV), where miners transferred their computing power to the BTC chain.

The halving could have a significant impact on BTC’s spot price, according to several cryptocurrency experts. The two previous Bitcoin halvings (November 2012 and July 2016) have been a precursor to a new record BTC price.

However, the situation in the conventional cryptocurrency market in 2020 differs greatly from the other two halvings. The current COVID-19 pandemic has caused an economic recession, which adds to stressors such as the bearish market of 2018, the hash wars, and a stricter set of government regulations.

Lessons from BCH and BSV Halvings

The BCH and BSV halvings occurred this year on April 8^th and 10^th, respectively, as both chains reached the milestone of 630,000 blocks. These events triggered a reduction by half in block reward for miners in the chains.

After these halvings, miners reportedly transferred their computing power to the Bitcoin chain, which still operates under the 12.5 BTC block reward regime. The mass departure of miners led to a huge decrease in the hash rate for the BCH and BSV chains, while BTC’s share in the hash rate distribution among the three chains increased significantly.

Hash Rate Distribution after Halving

Similar trends after the Bitcoin Cash and Bitcoin SV halvings raised the question of whether both events provided an early indicator of the upcoming Bitcoin halving. Once the halving of the main cryptocurrency is complete, all three chains will operate with the same amount of block reward, that is, 6.25 units of their native currency. The mining profitability will probably be the main determining factor for miners to choose the chain once again.

Ali Beikverdi, CEO of cryptocurrency exchange deployment service bitHolla, believes that miners’ reaction to the Bitcoin halving will be different from the trend in the previous BCH and BSV halvings. The executive emphasized that BSV and BCH are undergoing “extreme centralization”, which makes them inadequate indicators of the outcomes of the upcoming BTC halving.

The area of ​​mining is also included in this perceived centralization. In the case of BCH, heavyweights like Roger Ver and Jihan Wu from Bitmain own or support pools that control most of the network’s hash rate distribution. The situation is very similar for BSV, since some of its pools are affiliated with Bitcoin SV proponents, such as self-proclaimed Bitcoin creator Craig Wright and multimillionaire Calvin Ayre.

The mass departure of the BSV and BCH miners caused BTC’s share in the hash rate distribution among the three chains to be between 96% and 99%. Two weeks after the two halvings occurred, miners still dedicate their hashing power to the BTC chain. Some experts characterized the move of hash power to BTC as a temporary trend that would reverse once Bitcoin’s block reward drops by half.

By Alexander Salazar

The president of Brazil, Jair Bolsonaro, prevented the creation of the blockchain system for not complying with the decree.

Through the social network Twitter, Jair Bolsonaro, President of Brazil, announced the prohibition of the use of a blockchain system that would track the weapons and equipment in the country’s army. This piece of news was public recently.

According to local media, the creation of the system that could have helped the Brazilian army to have better control of the so-called “Army Controlled Products (PCE)” is prohibited in that country of Latin America.

The President of Brazil argued that the prohibition is due to ordinances No. 46, 60, and 61. The government published these measures last March 2020. Jair Bolsonaro says the country must comply with the mandatory parameters of the decrees. In this way, the government revokes the ordinances and the creation of the tool is prohibited.

According to data that the project recently provided, as it is known, ordinance No. 46, expressed the creation of the National Monitoring System for Controlled Products (Sisnar). This allowed the Brazilian Army’s Logistics Command (COLOG) to start with the initiative.

The official data from the country’s army could bring more details. According to the official information, the blockchain system would run into a new and unique network. Authorities in Brazil discuses for some years the use of blockchain technology, without clear statutes yet. According to the national army, the main objective of the tool was to constantly monitor war products such as weapons, chemicals, and explosives. The new blockchain project, according to army sources, would help to avoid criminal acts within the military organization.

In recent weeks, Jair Bolsonaro commented that the system would be of great help to “Establish the National System for Tracking Army-Controlled Products (SisNaR), which aims to monitor and track Army-Controlled Products (PCE) throughout the national territory”.

Resuming the decision to revoke the ordinance, the President’s son, Eduardo Bolsonaro, who is a federal deputy, commented that “more measures will come” in the coming days, whilst he considered the action as successful for the executive.

Use of Blockchain ​​in the Brazilian Army

The determining factor in the decision to revoke the development of the tool arose from ordinances No. 60 and 61, which expressed the adaptation of the companies to the official decree on the use of the system. This ordinance required manufacturers of weapons and ammunition, and companies importing military equipment, to adapt to the official decree.

Once these companies adapted to the requirements of the decree, the government would register the production chain in the blockchain section. This would allow the system to keep track of the products from their manufacture to their final point in the army.

In this way, President Bolsonaro stops the development plans of the Directorate of Controlled Products (DFPC) regarding its new control methods. This section of the COLOG is responsible for conducting the logistical support necessary for equipping troops in the army.

By María Rodríguez

The network helps some providers to connect with buyers and fight against the pandemic. This would streamline negotiations to help save more lives.

Northwell Health, New York’s largest hospital group, joined IBM’s new blockchain network to fight Covid-19. This group encompasses more than 800 hospitals that will use blockchain technology to deal with the pandemic.

IBM Network is a cloud-based application that uses Distributed Ledger Technology (DLT). The primary objective of this development is to help companies that provide coronavirus relief supplies connect with buyers.

To meet this goal, IBM will provide a program called Rapid Supplier Connect to eligible suppliers. IBM will provide this program for free at least until next August 31st.

The help that the Rapid Supplier Connect program provides comes just when the World Health Organization (WHO) declared New York as the Covid-19 worst affected region in the United States of America. Last Sunday, April 26^th, the city registered 367 deaths (70 less than the previous day), as well as a decrease in hospitalizations and the number of new positive cases.

How Does it Work?

Recently, Phyllis McCready, Northwell Vice President of Health and Chief Procurement Officer, told Forbes magazine how this tool works in supply chains.

In that sense, McCready highlighted the challenges that health organizations face when they need to examine new providers amidst the shortage of resources.

“It is through creating our own group purchasing organizations (GPOs) and supply chain, and joining forces with non-traditional suppliers that we have maintained an adequate stockpile of personal protection equipment (PPE), and other equipment and supplies, so we are pleased to join IBM Rapid Supplier Connect”, he said.

The shortage of medical products to deal with the Covid-19 has led buyers to include new companies in their supplier lists. In most cases, buyers are unaware of the origin or history of these new suppliers.

Due to the ignorance of the history of new suppliers, buyers are unsure of how good the products the suppliers sell could be. Now, with these new application buyers can have all the information in a short time. In this way, buyers of medical supplies can take a decision that is as appropriate as possible in the emergency.

The new network helps some sellers connect with buyers to streamline registered negotiations. This blockchain platform allows access to the complete information of the suppliers. The idea is for buyers to determine with whom they are negotiating, including also the list of products, quantities in stock, among other data.

This platform will include digital identity services. In this way, IBM seeks to help streamline providers’ background research to offer the addition of new emergency services.

“Identifying and researching these suppliers can be time-consuming and critical resource-consuming”, IBM said. But now, thanks to the new blockchain app, every hour and minute gained will help advance the fight against the pandemic that last Monday, April 27^th generated 2,984,538 confirmed Covid-19 cases and almost 209,643 deaths worldwide for the disease.

By María Rodríguez

The main four banks of China, retailers, and entertainment stores participate in pilot tests of the digital asset.

According to local media reports, McDonald’s and Starbucks are on the list of the 19 companies to test the digital yuan, China’s famous Central Bank Digital Currency (CBDC). This initiative is part of a pilot project to be conducted in Xiong’An, in the province of Hebei, China.

In this way, these two large restaurant chains are part of a list of restaurants and retailers that will participate in the pilot tests. According to local media, other institutions that will test the token are Zhonghai SPV, Jinfeng Catering, Jiankun Catering, Kaili Hotel, Oscar Studios, Golden Baihe, and Cainiao Inn.

To discuss the launch of this pilot project, the Commission of Development and Reform of Xiong’An celebrated a meeting on April 22^nd. In that meeting, in addition to the 19 restaurants, Chinese companies Ant Financial and Tencent, representatives of various government agencies, entertainment stores, retailers, and China’s four state commercial banks also participated.

These four government banks participating in the project are the Industrial and Commercial Bank of China (ICBC), the Agricultural Bank of China (ABC), the People’s Bank of China (PBoC), and the China Construction Bank.

The Time to Invest

Previously, China had used this token in Suzhou to finance travel, but now the use of this Chinese digital asset is targeting the region’s retail sector. There, this digital asset would function as part of a transportation subsidy scheme for local government and business workers.

Until now, local media reports that four Chinese cities were selected for the test. These cities are Shenzhen, Chengdu, Suzhou, and Xiong’an.

Despite the crisis that Covid-19 has generated, the Bank for International Settlements (BIS) indicated that this is the best time to launch the pilot project. This occurs because many citizens distrust fiat money, some of them have even wanted to save their US dollars in cryptocurrencies until the crisis ends.

Government Banks Prepare

In China, despite the government was critical of cryptocurrencies, government banks are now preparing for the adoption of the digital yuan. “The Central Bank has been preparing for launch both technologically and theoretically for a long time”, said Cao Yin, Deputy Director of the Tsinghua University Blockchain Research Institute.

Yin stressed that the People’s Bank of China (PBoC) has all the resources and talent necessary for the implementation of the use of digital yuan.

Also, the Agricultural Bank of China, one of the country’s largest commercial banks and owned by the Chinese government, began testing the digital currency. This is what the local media reported.

Token development progresses rapidly. Until now, the Agricultural Bank of China and the People’s Bank of China are working on a token wallet in the Chinese cities of Shenzhen, Suzhou, Xiong’an New Zone, and Chengdu. Additionally, Matthew Graham, CEO of the blockchain-focused fund Sino Global Capital, commented on Twitter, the beta application of this wallet is similar to WeChat Pay, Ant Financial (formerly Alipay), and the Tencent application.

The People’s Bank of China has been investigating digital yuan since 2014. This year, the project is making significant progress. However, the PBoC stressed that the launch of the pilot test “does not mean that the digital yuan has been officially launched”.

Until now, there is no official launch date, but some believe the digital asset would be ready in less than two years. The digital yuan could even be used at the 2022 Winter Olympics Games, which would mean the launch could occur in 2021.

By María Rodríguez

The new service uses SmartLink technology. The app generates a Zoom link and sends it to the target audience. Besides, the app processes payments automatically.

Zoom Video Communications, the leading US communications technology company, has integrated a blockchain-based application for the first time to accept payments with cryptocurrencies.

The name of this app is SmartSessions. It is an Ethereum-based cryptocurrency payment method that enables companies and “lonely entrepreneurs” to take advantage of crypto payments. These companies or entrepreneurs can offer services and receive payments through Zoom.

The platform in charge of developing this app is 2key New Economics. The idea is for the business owners to monetize video calls with cryptocurrencies. The integration of SmartSessions with Zoom opens a new opportunity. Whilst the coronavirus pandemic makes it difficult for businesses to earn an income, this new App allows you to receive cryptocurrencies quickly, easily, and safely.

Local media confirmed the information. As indicated by Zoom via email, this blockchain solution can mainly help those who are using Zoom to offer their services, despite the quarantine.

This new app could be useful for people who, due to the quarantine to prevent Covid-19, had to leave their jobs. For instance, the new App could help those who do activities such as yoga, consultants, or mentors. Now, these people could continue offering their sessions through Zoom videos and, also, receive payments in cryptocurrencies.

How Does It Work?

According to local media, this new service uses SmartLink technology and will allow business owners to combine the Zoom service with the management of payments in cryptocurrencies.

To receive their payment, users must add a payment wall to the video calls they make using Zoom. This way of operating would facilitate the process of generating income from viewers who access video calls.

SmartSessions generates a custom Zoom link and sends it to the target audience. Besides, the app processes payments automatically. The session host can also view the metrics for more information. In the metrics, the user will be able to see how ticket sales are going.

Users can purchase tickets for Zoom sessions with Ethereum’s native cryptocurrency Ether (ETH). In that sense, representatives of the 2key platform explained that automatic exchanges between Ether and DAIs, such as Tether (USDT) and TrueUSD (TUSD) will soon be available through a cryptocurrency liquidity network called Kyber. Bitcoin (BTC) and other cryptocurrencies are slated and ready to be available next quarter.

Ticket buyers will be able to buy Ether using a credit card within the app. Users will also have 17 different fiat currencies available to pay for digital assets.

Similarly, those who share Zoom invitations will also be able to earn rewards at ETH. Thus, these users who are third parties will be able to obtain a portion of any ticket sales they generate.

Currently, businesses that want to receive payments through Zoom sessions will have to use PayPal or bank transfers. Each participant will be billed separately.

Regarding security levels, representatives of the 2key platform indicated that the “Zoom bombing”, where unwanted members join a call with the purpose of disturbing, will not be a problem. The platform also will guarantee security since only participants who have paid will have access to the session.

Thus, Zoom joins social networks such as Facebook and message platforms that will allow to process and receive payments with cryptocurrencies, something that would help to make international transfers faster. This development will help the adoption of these digital assets.

By María Rodríguez