According to Core Developer, Bitcoin Technology Improvements Will Privatize and Simplify Its Use

Willmen Blanco
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According to Core Developer, Bitcoin Technology Improvements Will Privatize and Simplify Its Use

The beginning of a new decade is propitious to assess the improvements that await Bitcoin. A simpler use will make the technical complexities of Bitcoin transparent to the public.

The beginning of a new decade, which coincides with the eleventh anniversary of Bitcoin, is a propitious time to take stock of the evolution of its technology and its advances, as well as to predict its development in the immediate future.

In a recent thread on Twitter, Bitcoin Core developer John Newberry mentioned several of the improvements to Bitcoin technology, some of them still under development, which will provide it with more privacy and at the same time facilitate its use and adoption.

The end of the decade is a good opportunity to look back and marvel at the great advances that Bitcoin has made since Satoshi released the White Paper in 2008, according to Newberry. He adds that the current moment is a natural point to weigh what Bitcoin will bring in the coming years.

Newberry refers to the fact that the three main implementations of Lightning Network ─Eclair, c-lightning and LND─ are going through a good moment in terms of frequent updating and he highlights that the three meet the basic aspects of multi-path payments, which are payments in Lightning Network divided into two or more parts and sent by different channels.

This is an important advance as it allows a user to overcome the limited capacity of the channels and spend most of his or her funds, regardless of the number of channels that must be opened to make his or her payment.

Improvements in multi-path payments, together with the splicing technique or modification of the balance of the channels through transfers between on-chain outlets and payment channels will facilitate liquidity and channel management, as Newberry notes.

These technologies together will make channel and liquidity management easier. They will be automated and blended into the environment, which will make the user experience improve drastically.

In general, the Lightning Network infrastructure will continue improving, says Newberry. Bitfinex recently added to its platform the ability to make payments to and withdrawals from that micropayment network. The developer explains that all other exchange houses, merchant service providers, custodians, and wallets will follow this trend or risk becoming become obsolete.

He adds that new Lightning wallets will emerge: a mixture of self-custody, non-custody with third-party route management, as well as fully self-managed wallets. He believes that this is a completely new space, where there will be a lot of experimentation and different niches to develop. He mentions as an example the cases of wallets such as @MuunWallet, @Breez_Tech, and @PhoenixWallet, among others, which are already experimenting with different self-management models.

Newberry mentions many other improvements in Bitcoin technology that are currently under development, such as the search for greater interoperability of wallets, extended and cheaper mixing services, which, together with the advances already mentioned, would leave the functions that it performs perfectly in the blockchain, while other functionalities move to a second layer.

By Willmen Blanco

Blockchain Will Be Used by the Brazilian Securities Commission to Register Investors

Willmen Blanco
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Blockchain Will Be Used by the Brazilian Securities Commission to Register Investors

A study raises the need for a single platform with verified information. The system aims to grant investors autonomy in the registration process.

The Brazilian Securities Commission (CVM) published on December 18th a study jointly developed with the Institute of Technology and Society of Rio de Janeiro (ITS Rio). In the document, it proposes to incorporate a blockchain in the conformation of a single registry of Investors

The study, called “Investor Master Data: operational challenges, technological innovations, and proposals”, aims to help understand the advantages and disadvantages of using a blockchain in the real estate sector.

The Securities Commission stated that the study proposes using a blockchain platform as a possible solution to public spending that represents the collection of data to respond to the Know Your Customer (KYC) procedures” that banks and financial institutions apply as part of crime prevention measures. According to the document, there are currently several gaps in this system, as well as duplicated processes and a lack of information that eventually increases costs.

The proposal itself states that investors do not need to repeat their registration in all the financial institutions with which they have a commercial relationship, but that all their data are available in a single space in the CVM that may be accessible to the entire financial system. The study determines that, although the existence of a cadastral system using a blockchain is not yet known, the tendency is leaning towards the use of private and authorized networks.

According to estimates by the CMV, the annual costs associated with cadastral management in Brazil can reach about BRL 4.3 million Brazilian reais (BRL) (approximately one million US dollars). Suitability management can reach BRL 3.8 million (about USD 900,000), and the monitoring of politically-exposed people (PEP) can cost BRL 5 million per year (more than one US million dollars).

The study proposes, among other solutions, to experiment with new technologies, such as distributed accounting technology (DLT), in the KYC process in order to reduce costs and increase operational efficiency, according to comments by Bruno Luna, head of the Advisory Council on Economic Analysis and Risk Management (ASA) of the CVM.

The study also proposes timely improvements in current standards, insertion of the Securities Commission in a broad agenda of regulation and data exchange, coordination of the utility model and a proof of concept (PoC) for the registration of PEP using a blockchain. Additionally, it highlights the importance that investors have greater autonomy to manage their cadastral data through digital identities that facilitate the centralization of information, thus increasing efficiency.

For the operation of a DLT-based cadastral system, a digital identity system with coupled legal validity may be necessary. At the international level, digital identity implementations already exist in both the private and public sectors. In the technological dimension, there are already examples of architecture and technical identification solutions that incorporate DLT, such as Indy, Sovrin, and ION.

The document mentions the implementation of a kind of digital “passport” through which investors could add and delete data about themselves, as well as indicate and allow notes on their data originated or controlled by third parties. At the same time, the information validated by third parties could subsequently be sealed by digital signatures with the aim of adding reliability.

The research concludes that the use of a blockchain and digital identity architectures correspond to an idealistic model that must be reached through continuous evolution, with models that are more feasible in the short term. As part of the implementation process, it is also considered essential that the CVM intervene in discussion forums and intersectoral working groups.

By Willmen Blanco

Bankia Fintech Selected Two Blockchain Projects for Its Acceleration Program in Spain

Willmen Blanco
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Bankia Fintech Selected Two Blockchain Projects for Its Acceleration Program in Spain

The Spanish proposals of the startups Dōnext and Dain were chosen among 173 applications. The former focuses on gamification whilst the latter focuses on artificial intelligence.

It was reported that Bankia Fintech’s fifth call to accelerate technological ventures selected two blockchain-related projects in Spain. The proposals of the startups Dōnext and Dain are part of the 18 ideas chosen by the evaluation panel to integrate their development program, which will also include cybersecurity solutions, user experience, and payment methods, inter alia.

Regarding Dōnext, it is a project aims to create an experience with a blockchain so that users can get involved with digital collecting, as a form of entertainment. Neither Dōnext nor Bankia Fintech referred to the type of blockchain that will be used but they did not give further comments.

Bankia Fintech defines Dōnext’s proposal as a tool that applies gamification to the development of products and services that stimulate the acquisition and loyalization of customers by creating experiences through augmented reality and video digital content and assets.

In the case of Dain, it is a decentralized artificial intelligence network that would be activated in 2021. Its promoters explain that the operation of the platform allows the efficient use of the computational resources of any device located anywhere in the world, without intermediaries, in order to solve complex artificial intelligence (AI) problems that may arise.

In other words, Dain will reward the owners of the hardware with a token for their collaboration, which would serve to open an Artificial Intelligence market where companies with the same needs can offer their services to discover and create solutions together.

According to its roadmap, the project is currently in the private sale phase of the token. Then, in the first quarter of 2020, it will move to the first stage of its initial coin offering (ICO) managed by an exchange house. The network is expected to begin its tests in the last quarter of 2020.

Growing Interest in Blockchains in Spain in 2019

During this year, there was a proliferation of announcements on the use of blockchains in public and private institutions and companies in Spain, in various developments ranging from the financial sector to ecological initiatives, as well as product traceability projects.

With respect to the mitigation of the environmental impact, there have been several recent announcements in the Spanish sphere. For example, the company Greenb2e, originally from Valencia, launched a project to tokenize the use of renewable energies and the promotion of ecological practices in the business field.

For their part, both Meliá Hotels and the State Post and Telegraph Society of Spain joined the ClimateTrade network, a project of the startup Climate Blockchain Initiatives, to contribute to environmental projects and compensate for their impact on the environment.

The two projects accepted by Bankia Fintech are just two examples of the many applications of blockchains to provide a better service to their users. An increasing number of uses for this technology is being implemented among existing and emerging companies worldwide.

By Willmen Blanco

The Ticket Sales Industry Adapts to New Technologies Using Blockchain

Maria Rodríguez
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The Ticket Sales Industry Adapts to New Technologies Using Blockchain

Blockchain technology could help solve various important aspects of the ticket industry.

As a method to adapt to new technologies, one of the leading companies in the sale of tickets for events, Ticketmaster, is adapting its processes to use blockchain technology in the search for solutions to problems facing the industry.

It is for this reason that Ticketmaster announced, in October 2018, that it would have bought the blockchain technology company Upgraded. With this acquisition, the event distribution company explained it was committed to solving some challenges facing the sector.

One of these challenges focuses on being able to give the companies responsible for holding the events better control over the distribution of tickets, providing in turn, users extra protection of those who sell fraudulent tickets.

On December 9th, Sandy Khaund, who is vice president of blockchain products at Ticketmaster, presented the cases in which the company would be currently working using blockchain technology. In this way, Khaund talked about the use of Smart Contracts to develop the “Smart Ticket” solution. “We are writing specific code for each entry we sell and then we execute it on a private blockchain”, Khaund added.

It is for this reason, that a few months ago they developed a strategy in the form of a pilot plan where the company sold tickets to a rock concert using a kind of “smart ticket”.

This ticket was priced at $ 150 each, and the system kept the ticket receipt until the user made the purchase. The system blocked the purchase if the amount transferred exceeded $ 150. Although the pilot test proved to be a success, there are still many issues to be resolved.

On this subject, Ashton Addison, who is CEO and founder of EventChain, spoke with a news media specialized in cryptocurrencies. He referred to this example adding that there are many reasons to use this technology in the sale of tickets. Among them, it is important to avoid counterfeit tickets. The idea is to customize the tickets.

“The objective of implementing blockchain in the ticket sales industry is to return justice to artists, event organizers, and fans. For example, one of the main problems facing the industry is the counterfeit tickets. This also converts tickets into scarce digital assets, so they cannot be sold twice”, he concluded.

Tokenization Could Consolidate a Better Decentralization

On the other hand, Alex Tapscott, who is co-founder of the Blockchain Research Institute, added that Ticketmaster’s complete dominance over the ticket sales market could be less decentralized.

“The recent digitalization of tickets has caused speculation to move from a decentralized market to one where a central speculator, Ticketmaster for example, controls the entire market. As a result, these intermediaries can charge atrocious prices because there is no price discovery in a market open”, he sentenced.

To this, Tapscott suggested that the ticket sale is in the form of tokens. This, in his opinion, could solve certain issues facing the market, for example, to allow the exchange of tickets, trade between peers and avoid counterfeit tickets.

Despite this, Alan Rakov, who is the Vice President of business and associations at FanDragon, commented to the same news website that progressively, what Ticketmaster is developing, will benefit the entire industry.

However, Rakov, expressed greater concern about the use of a private blockchain network by Ticketmaster since, in his opinion, it does provide a greater capacity for transaction operations per second, but entails less transparency for those outside the network. “We believe that the open form is a better way to do it than in a closed one”.

The Future of the Ticket Industry in Hands of blockchain?

Although there are several possible alternatives to the ticket sales industry, it is still unclear what is the best strategy to ensure total success in all sectors and that this, in turn, generates greater peace of mind for users.

Solutions such as True Tickets, developed by IBM, could provide solutions to many problems using an advanced system that serves as an immutable accounting book that helps organizers and event managers keep track of tickets, once they are already sold.

Although the success of this tool has not yet been proven, it is expected that by 2020 the first pilot plan will be executed, using a “mobile ticket” type for Broadway shows.

The organizers of the event do not have to become involved in the technical aspects of the blockchain network, but these alternatives must be developed to help them keep fans happy and satisfied.

Whilst everything indicates that blockchain technology is involved in the sector, it is still unclear if it would represent an immediate solution to all the problems. However, this technology could facilitate aspects that were previously difficult to deal with or resolve; for instance, the fight against counterfeiting and transparency, which are very important aspects of the safety of the industry.

By María Rodríguez

Due to Bitcoin Abandonment, BSV and BCH Miners Lost Opportunity to Receive USD 20 Million

Willmen Blanco
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Due to Bitcoin Abandonment, BSV and BCH Miners Lost Opportunity to Receive USD 20 Million

A study by Binance Research analyzed the economy behind digital mining. The analysis considered the time elapsed since the execution of both forks.

A report prepared by Binance Research, the subsidiary of the exchange house Binance dedicated to studying the crypto market, noted that the miners that abandoned their work on Bitcoin (BTC) to engage in the mining of Bitcoin Cash Satoshi’s Vision (BSV) and Bitcoin Cash (BCH) had lost the opportunity to receive more than USD 20 million.

The report, entitled “Bitcoin Mining Allocation,” is a research study aimed at making known the reasons why some miners are “economically irrational” when allocating computing resources among these three cryptocurrencies. In the case of Bitcoin SV, Binance Research explained that, in less than a year, the miners could have raised between USD 12 million to USD 13 million if they had acted rationally when allocating mining resources,” referring to the functions that were no longer executed in the Bitcoin network.

Regarding the miners that moved to Bitcoin Cash, the researchers emphasized that the estimated cost is around USD 7.7 million. The analysts consider that the situation could have been avoided if the BCH miners “had been completely rational when allocating their computing resources.”

The study, released on Wednesday, December 18th, considered the 13 months that have elapsed since the hard fork of Bitcoin Cash, taking place on November 15th, 2018, which resulted in two versions of the chain: the one called Bitcoin Cash ABC and Bitcoin Cash SV.

Another part of the report considered the period of time between August 2017 and December 2019. It should be noted that this is the case of the first Bitcoin fork from which Bitcoin Cash emerged.

Processing Power

According to Binance Research, there are several reasons why the allocation of processing power is not in line with its theory of efficiency. Its analysis points to liquidity and markets, miners’ expectations, intrinsic differences, and game theory.

In its conclusions, it is worth highlighting that the market price was the main driver of the number of computer resources allocated to secure a blockchain under the Proof of Work (PoW) modality.

Between the mining of BCH and that of BSV, the former would be more rational from the economic point of view while the latter has suffered a loss of opportunities in 2019. According to the researchers, BSV mining has lost the opportunity to receive 15% during this period of time, when compared to its total mining proceeds after the fork occurring in 2018.

The report also noted that the cryptocurrency mining industry has become a billion-dollar sector and that it has grown more specialized over time, especially due to the arrival of ASIC equipment.

The comparison considered that Bitcoin and Bitcoin Cash, as well as Bitcoin Cash SV, use the SHA-256 algorithm. According to data from blockchain.com, the processing power or hash rate of Bitcoin is currently about 100 EH/s (100 trillion hashes per second), while that of Bitcoin Cash is 2.5332 EH/s and that of Bitcoin Cash SV is 1,111 H/s.

By Willmen Blanco

Identity of Congress men and women Will Be Certified by Venezuelan Parliament with Blockchain

Willmen Blanco
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Identity of Congress men and women Will Be Certified by Venezuelan Parliament with Blockchain

“Connected Assembly” is a project for the congressmen and women to make remote deliberations. The lawmakers can vote virtually with the application VIDA.

In recent weeks, the National Assembly of Venezuela approved a project that will allow certifying, with a blockchain, the identity of those deputies that are in exile or hiding, so that they can participate remotely in the parliament’s deliberations.

The legislators modified the internal and debate regulations in the face of what will be the vote to designate the leading board of the legislative power that will be taking place on January 5th, in which the ratification of Juan Guaidó as president of the National Assembly controlled by the political opposition to Nicolás Maduro is expected.

This is a project conducted in conjunction with the Washington-based startup, Citizenz, the Organization of American States (OAS) and the Westminster Foundation. It was reported on Friday that the project, called “Connected Assembly,” is based on the VIDA mobile application, a program that will allow deputies to participate and cast their votes virtually.

At the time of writing this article, Citizenz and its co-founder, Roger Santodomingo, did not give any comments on what type of blockchain will be used and the technical details of the identity certification process.

VIDA is a digital identity platform based on artificial intelligence, mobile technology, and blockchain that will serve as an electronic government system. Each parliamentarian will have a unique QR code that will be linked to the blockchain selected for certification. As it is a blockchain registration, the identity of the deputies will be immutable and permanent.

Clash with Supreme Court

The decision of the National Assembly to modify the internal and debate regulations to implement a digital identity system based on a blockchain was rejected by the Supreme Court of Justice (TSJ), which annulled the changes, alleging that a virtual vote violates the rules of the National Constitution on the presence of parliamentarians in debates.

The deputies gave their approval to this virtual participation platform saying that, due to reasons of political persecution, a group of legislators cannot attend the sessions convened by the leading board.

The complicated political and economic landscape in Venezuela keeps the country in recession and polarized, which is reflected in a struggle for power between the National Assembly, the Supreme Court of Justice and the executive power.

Digital identity

Blockchain-based digital identity projects are common all over the world. In Latin America, there is the case of Brazil, which is investing USD 1.4 million in this type of tool.

In Europe, the government of Catalonia informed in September of this year that it will build an identity platform based on blockchain. Even the company Hyperledger, which is aimed at offering blockchain solutions, created a new infrastructure for identity management between blockchains.

Distributed ledger technology (DLT) or blockchain is original from Bitcoin as a digital system, which allows two or more people to conduct, through the Internet, transactions without the intervention of trusted third parties or intermediaries. Although its use has been extended in the world of cryptocurrencies, there is an increasing number of applications for its deployment.

By Willmen Blanco

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