The Reason Why Bitcoin Can Be Considered as Valuable as Gold

Willmen Blanco
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The Reason Why Bitcoin Can Be Considered as Valuable as Gold

Due to its shortage, Bitcoin can be understood as digital gold. Because of its digital nature, it is difficult to confiscate and outweighs the risks of transporting gold.

Decrypto, an exchange based in Buenos Aires, Argentina, allows purchasing and selling Bitcoin and other cryptocurrencies and aims to connect traditional financial markets with digital ones.

In the digital age, virtually any piece of data or information can be added to the network. This ease of encoding digitally has reached such an extreme that, once something is on the Internet, it is very unlikely to sustain its uniqueness. For example, a photo of a single moment can be replicated so many times that it becomes difficult to identify the original.

It should be noted that this has affected not only the information but also the value that we exchange through the network. Under the control of the world’s central banks and governments, digital money can also be created infinitely, thus generating inflation and poverty as collateral effects. Even though this type of economic measures is common throughout the world, living proof of their consequences is the Venezuelan hyperinflation.

As societies move towards digitization, the number of monetary transactions made through the Internet and digital services increases, leaving physical cash behind, and eliminating the general idea of ​​cash.

It may seem that people are moving their money directly, but everything depends on trusted third parties, that is, institutions, as well as service and payment providers, are the ones that do. There is no effective relationship in the exchange, which makes it impossible to conduct direct transactions between peers.

Bitcoin can be understood as digital gold because of its shortage since there will only be 21 million BTC, as well as the difficulty to obtain it through the process of mining, similar to the activity that allows obtaining precious metals and minerals.

However, it can be said that it is superior as it is a digital native asset without intermediaries, offering the possibility to exchange value through the network directly, without trusted third parties certifying the authenticity of gold or validating the coupons on it, or updating bank account statements.

Therefore, citizens of different countries that decide to establish a valuable relationship using Bitcoin will not find any authority that censors this operation, which is conducted effectively between two users, irrespective of location, completely cutting expense on transportation and certification that could concern those trading with gold.

Besides, no authority certifies the authenticity of that intangible gold, which applies other standards. As Bitcoin is a platform that has conquered an important level of decentralization, it is the nodes that ensure that the rules allowing bitcoins to remain scarce are still respected.

The verification of trusted third parties is not necessary, which leaves this task to the nodes of the network and software consensus rules. Given its digital nature, it is difficult to confiscate and it outweighs the risks of transporting large amounts of value that gold faces.

Because of its shared characteristics with gold, a growing number of users will eventually realize its value. Its proven digital shortage, programmed to meet the purposes of money, potentially makes Bitcoin as valuable as gold, or even more.

By Willmen Blanco

Vulnerability Allowing Access to Private Keys of Trezor’s Cold Wallets Is Verified

Alexander Salazar
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Vulnerability Allowing Access to Private Keys of Trezor’s Cold Wallets Is Verified

The same fault found last December in KeepKey’s cold wallets was identified. A voltage attack allowed researchers to extract the encrypted seed in 15 minutes.

As part of their research work, the Kraken Security Labs team detected that Trezor’s cold wallets (Trezor One and Trezor Model T) suffers the same vulnerability that was recently identified in KeepKey’s wallets, which allows an attacker to find the way to extract seeds (private keys) just by having physical access to the wallet for approximately 15 minutes.

During that period, the analysts were able to conduct a voltage failure or voltage glitching attack through which they managed to extract the encrypted seed. This type of attack involves manipulating hardware variables to cause temporary problems in secure devices, which manipulate or retain confidential data.

The researchers add that this procedure takes advantage of the inherent faults in the microcontroller used in the wallets. They explain that it is difficult for the Trezor team to do something regarding this vulnerability without redesigning the hardware, which they also concluded when they evaluated KeepKey’s cold wallets last December.

At that time, they determined that the vulnerability stems from the manufacturer’s firmware, which is the computer program that establishes the logic controlling electronic circuits. The voltage failure attack is aimed at the memory of the microcontrollers that are executed at device startup, point at which the security settings of the chip are loaded.

Regarding Trezor’s wallets, the analysts indicate that the extraction of seeds is not a new territory. They remember that Trezor has implemented measures against a variety of previous hardware attacks, including successful mitigations against glitching attacks. However, analysts say that the test that they have just run could counter these mitigations.

Trezor Responds

Before the publication of Kraken Security Labs, the Trezor team (SatoshiLabs) identifies the vulnerability and even recommends that users read the material to know in detail how the attacks work. They even add an explanation of what is known as downgrade attacks, to which Trezor’s wallets are also vulnerable. These are aimed at the hardware vulnerability of the STM32 microchips used in the Trezor One and Trezor Model T models.

Given this situation, their response emphasizes that these attacks require physical access to the device to manipulate it, so users’ role in protecting their wallet is highlighted.

They add that although only about 6% of cryptocurrency users are concerned about physical attacks, they treat physical vulnerabilities as urgently as any remote vulnerability. In consequence, they recommend implementing the “passphrase” function, an additional password phrase that is not stored anywhere in the hardware.

Users Question Response

Concerning this argument, Twitter follower @mvidallopez developed a thread through which he questioned Trezor’s position. He said that he saw a lot of complacency with Trezor’s response about the vulnerability that Kraken had revealed, adding that it should be more demanding.

To conclude, he says that in 2020 it is not acceptable to sell cold wallets with hardware that has long been known to be vulnerable, due to its design. He also disagrees with transferring the mitigation of the problem to the customer. In this regard, it should be remembered that using the additional phrase requires an additional “passphrase” configuration, with which novices risk losing their funds.

By Alexander Salazar

Cryptocurrencies Can Be Bought through BBVA and Banamex ATMs

Alexander Salazar
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Cryptocurrencies Can Be Bought through BBVA and Banamex ATMs

The operation consists of funding an account in Mexican pesos and then buying crypto assets. Since last January 27th, Mexicans can also use the service to buy Dash.

Tauros, the Mexican platform that allows users to manage their accounts in Mexican pesos (MXN), US dollars (USD) and cryptocurrencies, recently incorporated the possibility for its users to add funds to their accounts in that exchange, through the 11,000 ATMs that the banks BBVA and Banamex have distributed throughout Mexico.

With the new service, users can take advantage of the integration of Tauros with the network of ATMs of the banks BBVA and Banamex deployed in the country to acquire cryptocurrencies through bank deposits in cash, which can also be done at any of the cashier windows of these financial institutions.

The operation consists of adding funds, in Mexican pesos, from the ATM or cashier window to the user’s account in Tauros. That money can be used to acquire the equivalent in available crypto assets such as Bitcoin (BTC), Bitcoin Cash (BCH), Zach (ZEC), Litecoin (LTC) and Dash (DASH), according to information provided by the Mexican platform.

Last January 27th, Dash Core Group announced that its cryptocurrency can also be acquired through the service offered by Tauros, thanks to a commercial alliance that will allow them to be available to unbanked citizens that live in Mexico, where the use of cash still predominates.

Tauros began operations in Mexico last October 3rd to massify the use of cryptocurrencies as another method of payment. Its services, which it describes as “neobank”, allowed facilitating its alliance with the country’s financial institutions. This new bank concept offers banking intermediation services, through a 100% digital business model, which is well seen by BBVA, according to its website.

BBVA Research considers that the novelty of “neobanks” consists of their focus on offering a better customer experience, with closer proximity through mobile or other non-attendance-based channels, and their emphasis on transparency and reduction of fees. It was also explained that, through its alliance with these financial institutions, BBVA increased its presence in the United Kingdom, the USA, Brazil, and Finland.

There are other alternatives to acquire cryptocurrencies using fiat money in Mexico, among which is the platform Latamex, launched by Binance in mid-December 2019. Since that moment, users can access the new Binance service by directly entering the platform to buy or sell BTC, BNB, and ETH. Also included is the dollar-anchored cryptocurrency BUSD, approved by the New York Department of Financial Services, as was announced on the website.

Besides, the exchange Kapytal, which announced in the middle of last year its new alliance with Pundi X, will offer points of sale for Bitcoin and other cryptocurrencies. With this agreement, Kapytal will allow the citizens of Mexico to buy Bitcoin, Litecoin, Ether, Binance Coin, and DAI through these points of sale. They will offer their services as a liquidity and retention fund provider, for the settlement of transactions. In other words, they ensure that the funds, in both cryptocurrencies and fiat money, will be delivered to whom they correspond.

To conclude, it should be that another alternative in Mexico is the use of Bitcoin ATMs, most of which are located in the capital, Mexico City, where they can be found in five locations.

By Alexander Salazar

A Fund of 430,000 Euros Will Finance Blockchain ​​Initiatives in Europe Countries

Maria Rodríguez
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A Fund of 430,000 Euros Will Finance Blockchain ​​Initiatives in Europe Countries

The project called “Blockchers” is focused on allocating efforts in small and medium-sized companies that seek to promote blockchain solutions.

As part of a competition that seeks to finance blockchain projects with 50,000 euros, small and medium-sized companies in Europe that are interested in obtaining this benefit could participate in the second edition of the project called “Blockchers”.

The financing would be obtained after a selection process that may conclude in final competitions, where those with the most innovative ideas would be the winners. As it is known, the reception of the projects to compete began on January 13th and will end its registration on March 13th of this year 2020.

The process in which Blockchers makes its contribution to the contestants that have been selected is divided into four parts in which it seeks to distribute the funds by different areas. It is for this reason that among the conditions for the contestants the calendar is stipulated by phases: Call, immersion, implementation, and recognition.

When the proposal reception process has been completed, which would happen on March 16th, the project evaluations will begin and these revisions will end on April 3rd.

The project seeks to make possible a balanced competition among the participants. It is for this reason that since the beginning of the second stage of the contest, which is the immersion, the applicants who have been selected will receive the sum of 3,000 euros for the preparation of a presentation with mockup and tools that work to expose the project to the judges.

At the end of these two phases, it is known that participants will continue with the implementation stage, where each participant will acquire 30,000 euros to start up with the solution they have prepared. The data indicate that this assignment will be prepared and adjusted to the points reached according to the so-called Key Performance Indicators (KPI).

At the end of this phase, the last stage (Recognition) will be in charge of rewarding the participants who managed to stand out among the others. The first place in the contest, which has developed the best blockchain solution, will receive a prize of 17,000 euros. The second place will get 13,000 euros. This would reach the collection target they have planned for 430,000 euros.

As cited as part of the contest information, the new phase selection method will allow obtaining better results. This is according to the directives of the awards.

“Each stage includes a set of activities that qualify for financial support. All funds disbursed will be based on concrete results and not administrative justifications”, they said.

The first call for the contest managed to get more than 100 applications to obtain the financing prize. A total of 12 proposals were selected to be executed. And it is known to date that eight of those blockchain solutions are in the implementation phase and will end in March when the winner will be selected.

This is another strategy to promote the use and exploitation worldwide of new technologies such as blockchain.

By María Rodríguez

US Food Inspectors Will Test IBM Blockchain for Export Certifications

Maria Rodríguez
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US Food Inspectors Will Test IBM Blockchain for Export Certifications

Export certification systems could be faster thanks to the use of blockchain technology. The project will start as a proof of concept.

International Business Machines Corporation (IBM) seeks to build a blockchain proof-of-concept for the Food Safety and Inspection Service (FSIS), the food safety entity of the U.S. Department of Agriculture (USDA). The idea is to evaluate how blockchain can optimize export certification systems.

A spokesperson of FSIS recently confirmed the news. He said that the $269,450 blockchain feasibility assessment will search out efficiencies in a process that is often complex and “marred” by regulations, so the main idea is to have a faster system to work with and also preserve the food safety of consumers.

Thanks to the automation of the processes, blockchain technology could help to check some products according to the U.S.’s standards, and, depending on the destination, other countries’ regimes as well, reducing considerably risk levels and making the manual process faster.

FSIS is responsible for certifying America’s exported meat, poultry, and eggs. Besides, FSIS inspectors verify documents, stamps, shipping containers and at least a sample of the export product itself against a broad set of regulations, the inspector training manual shows. An ensuing manual and a digital paper trail accompany products in transit to store the information.

Immutability Documentation

One of the objectives of this project is to verify if blockchain technology can bring “increased immutability and visibility of critical documentation traversing across the supply chain”, the spokesperson explained, noting that, in this case, the FSIS will start by studying the export business process.

“This is the first time that FSIS has sought to use blockchain technology”, the spokesperson commented.

The project is part of FSIS’s wider import-export modernization initiative, according to the FSIS 2020 Annual Plan, where the food regulator first revealed the proof-of-concept’s existence without naming its private-sector partner.

A spokesperson confirmed FSIS gave IBM the export certification study last year. In this way, FSIS gave IBM a nondescript “blockchain proof-of-concept” contract worth nearly $270,000 in August 2019.

The contract runs through June 2020. During that time, IBM’s blockchain will help FSIS understand the role that the tech might play in the agency’s future, according to the spokesperson.

“The proof-of-concept intends to identify and quantify the potential benefits of blockchain technology so that the agency can make an informed decision on the next steps”, he said.

Other companies around the world are interested in using blockchain technology in the food industry to track the origin of certain food products and allow customers to know where these products come from.

The French supermarket chain Carrefour and Nestle are an example. Last November, both companies announced they were using IBM’s Food Trust Blockchain platform to provide their customers with information on the origin of food products, especially baby milk.

Customers would have access to unalterable information since the companies’ idea is to ensure more transparency of the entire supply from the beginning of the production process to the end of it.

Besides, customers would be able to scan a QR code that will be incorporated on the milk’s packaging. In this way, they will access a range of information.

Companies like Cargill, Walmart, Vinamilk (in Vietnam) and an Italian subsidiary of Kraft Heinz are also using blockchain technology to guarantee the quality of the products they sell.

This is an expanding trend that would contribute to reaching more companies and countries around the world, something that means a contribution to the adoption of blockchain technology.

By María Rodríguez

Blockchain Platform Will Support Donations to Fight Against Coronavirus Epidemic

Maria Rodríguez
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Blockchain Platform Will Support Donations to Fight Against Coronavirus Epidemic

The intention is to have a platform to ensure the donation process is immutable, traceable, and reliable.

Hyperchain, a technological company founded in 2016 that works developing blockchain solutions, announced the launch of a platform to fight against the coronavirus epidemic. It will serve as a portal for medical supply donations to support hospitals in central China.

The news about this blockchain-based platform was announced in a press release recently issued by Hyperchain. Together with Fuxing Group, Xiongan Group, and other enterprises, Hyperchain decided to build a platform to ensure the donation process is immutable, traceable and reliable.

For donors, it is very important to trust the platform where they will donate. For this reason, the idea is to create a transparent portal to exchange information safely. This allows donors to see more thoroughly where their funds or donations are going.

Besides, this blockchain-based platform will provide proof of need and proof of receipt to ensure that the donations are conducted immediately to the intended party or the people and institutions that need it.

Hangzhou Qulian Technology Co., Ltd, known as Hyperchain, is a high-tech company that provides technical products. It specializes in developing the underlying blockchain platform, the security and data-sharing platform, the Backend as a Service platform (BaaS), the supply chain finance Software as a Service (SaaS) platform, and digital evidence service platform.

Chinese Startup Donates USD 14,000

Chinese startup FUZAMEI launched a blockchain-platform called “33 Charity” for tracking and managing data, where organizations can register, store and manage information about individuals.

During the launch of this platform, FUZAMEI announced a 100,000 Chinese yuan (USD 14,280) contribution for fighting against the coronavirus.  The company spent 60,000 Chinese yuan (USD 8,500) of that sum on medical supplies.

FUZAMEI previously announced that it had applied for more than 300 blockchain patents. almost 295 of these patents were published, and eight of them were authorized for the operation stage last November.

Some crypto firms have contributed to fight against coronavirus. Major crypto exchange Binance also donates 10 million Chinese yuan (equivalent to USD 1.44 million) to help fight and investigate against the coronavirus, according to local media.

Another company launched a charity donation effort to acquire medical supplies for Wuhan coronavirus victims. This is the blockchain marketing service firm Krypital. About this aspect, Krypital announced it will create a blockchain-based donation system that allows obtaining greater transparency and efficiency storing information and data regarding this disease.

More than 600 people have died because of coronavirus infection in China. There are almost 3,000 people infected, but the OMS says it is not a pandemic yet. Doctors are still not getting enough crucial medical supplies so this is the reason why more people want to donate and help accomplish this objective.

The potential of blockchain technology to ensure fairer, more equitable aid and distribution of donated funds has been recognized by leading organizations around the world, such as the United Nations, the Red Cross, and the World Wildlife Fund.

This is another example of how blockchain technology currently helps with charitable donations and storing vital information for medical purposes. This is a technology that is more and more present in the medical sector and everyday life.

By María Rodríguez

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