California Bill Aims to Recognize Blockchain Records

California Bill Aims to Recognize Blockchain Records

The state of California has introduced a new bill that aims to recognize blockchain transactions, digital signatures, and smart contracts as a legal form of record. Assemblyman Ian Calderon introduced Assembly Bill 2658 on February 20 in order to re-define laws that apply to electronic records that take place within the state.  

Also read: Indians Look to Buy Bitcoin Overseas as Regulations Tighten

California State Assembly Person Introduces Blockchain Record Keeping Bill  

California Bill Aims to Recognize Blockchain RecordsAn American lawmaker serving in the California State Assembly in the 57th district, Ian Calderon, wants blockchain records, and smart contracts to be covered under California law. Calderon, a Democrat from the Gateway Cities region, believes these types of records and definitions should be included the California court system. Essentially the bill proposes that records or signatures will not be able to be denied because they are presented in electronic form.

“A record that is secured through blockchain technology is an electronic record,” Assembly Bill 2658 explains.           

A signature that is secured through blockchain technology is an ‘electronic signature’ and also updates the term ‘contract’ to account for smart contracts, or self-executing pieces of code that trigger when certain conditions (like a reaching a particular block number on a blockchain) are met.

Assembly Bill 2658 Will Also Cover Blockchain Storage

California Bill Aims to Recognize Blockchain Records
California’s 57th district democrat, Ian Calderon.

The California State Assembly bill will have to be approved by other state lawmakers alongside Governor Jerry Brown’s signature in order for it to become law. Calderon’s proposal aims to define blockchain storage recorded by blockchain technology as well. However, U.S. agencies can suspend a business licensee that provides electronic records if they failed to comply with certain sections of U.S. money transmission laws.

California’s State Assembly bill is very similar to bills introduced in Arizona, Vermont, and Florida. These three states also have lawmakers proposing new definitions and laws that recognize blockchain transactions, digital signatures, and smart contracts. If Assembly Bill 2658 pushes through California’s legislature and Governor Jerry Brown’s desk then the law will stay in place until January 1, 2021.

What do you think about the proposed bill that’s making its way towards California legislature? Do you think most U.S. states will follow this path? Let us know what you think in the comments below.  


Images via Shutterstock, Ian Calderon’s Assembly office, and the California State Assembly.


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Trading Tip `The Wall´ – Drop Tokens That Suffer From Overtokenization

Trading Tip `The Wall´ - Drop Tokens That Suffer From Overtokenization

It’s said that 90% of all startups fail, and that we should expect nothing more from ICOs. 10% success rate is still overly optimistic for ICOs, but perhaps not for the reason you may think. You’re probably aware of examples of ICO “founders” who turned out to be a bunch of made up Linkedin-profiles. You’re probably also aware of the risks that come with sending money to people you never met, in an asset or token impossible to freeze.

Also read: Disappearing Premiums Signal Bearish Mid-Term Outlook

Drop Tokens That Suffer From Overtokenization

You’re probably also aware of industry-specific risks, apart from straight up scams, which include:

  1. ICOs violating securities laws
  2. ICOs using complicated legal structures in order to avoid violating securities laws and having it back-fire
  3. ICO fundraisers using Ethereum smart contracts and imploding (this actually happened to the Ethereum co-founder himself)

In this post, I’m going to discuss a much more daunting problem that very few seem to grasp; overtokenization.

Let’s be clear: ICOs as a concept is not at all a bad way to fund the development of a new cryptocurrency. However, the ICO space today is overwhelmed by projects that are not even cryptocurrencies. ICOs have moved from covering cryptocurrencies, to apps that use an existing cryptocurrency as its platform, to regular companies doing something cryptocurrency related, and to regular companies doing nothing related to cryptocurrency at all. What many ICO investors seem to forget to ask is: why exactly do these projects need to have a “token”? Somewhere along the way, everything suddenly having a token became normal, and no one barely questions it anymore. This is going to cause a huge problem in the future, and I’m going to explain why.

There are very few cryptocurrency projects that legitimately necessitates a coin or a token from a technological perspective. The known examples that do are the following: actual cryptocurrencies (e.g. Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Monero), and certain protocols involving some kind of game-theoretical token usage (i.e. staking).

Trading Tip `The Wall´ - Drop Tokens That Suffer From Overtokenization

Augur Project

One of the few projects from the latter category I can come to think of is Augur. Augur isn’t a cryptocurrency, but a product that uses a cryptocurrency as platform. It’s a decentralized prediction market (currently in beta-stage) which consists of a set of smart contracts on the Ethereum blockchain. In Augur, its REP token (an ERC20) is integral to the process of resolving bets. It provides Augur with a way to financially reward and punish the actions of honest and dishonest actors, and creates incentives for a specific category of users (REP holders) to be proactive on the platform.

Augur is a project with flaws, but what we know is that it’s not practical to try to create Augur without a token. The token is – from the ground up – integral to the functions of the platform. The token itself is also defensible as an investment: as the popularity of the platform increases, the more revenue there will be for REP holders to earn on fees from resolving bets. I would argue that these ingredients are pretty unique to Augur (and perhaps also similar projects like Gnosis). In fact, there is an extremely limited number of cases of non-cryptocurrencies where a token is both technologically necessary and useful as an investment.

But the allure of launching a project like Augur is tantalizing; you don’t have to plan to create a whole cryptocurrency to launch an ICO, you just need a product that somehow utilizes a token that in some manner economically motivates people to hold it. If you figure out that, then you can launch an ICO too.

Because of the insane amounts of money investors poured into ICOs, almost every entrepreneur in the industry has quickly decided that whatever project they’re working on, it should probably incorporate some kind of token. Because not all projects are launching a new cryptocurrency, and they do not involve game-theory or staking that necessitates a token like Augur does, most projects have settled with a model where a specific token is required to utilize its services.

Trading Tip `The Wall´ - Drop The Tokens That Suffer From Overtokenization

Golem plans to build a decentralized market for computing power.

A Token-Critical Perspective

This is where the industry is running into a problem. Instead of an ecosystem of services being built around cryptocurrencies, you will now have to first purchase a specific token in order to utilize those services. Whether its storage space for rent, processing power for rent or something else, you won’t be able to pay for those things directly in your favorite cryptocurrency, you’ll have to use the specific token they’ve restricted their service to accepting, in order to raise money from you in their token sale.

This restriction severely diminishes the utility of the service they are creating. In the Golem example, its participants will be forced to accept payment in GNT rather than bitcoin for instance. It’s very unlikely that GNT is going to be as liquid as bitcoin, and therefore it is much more likely that the value of GNT will fluctuate spectacularly in comparison, which isn’t very convenient for its users. Furthermore, some sort of micro-economy will have to evolve around the GNT token, that relies on the GNT tokens that are purchased are later resold to the market. That opens up a whole new attack surface, where the entire platform could essentially be hijacked in a coordinated act of market manipulation. This is why absurd constructs such as Bancor have appeared, in order to address this ridiculous problem.

This doesn’t necessarily mean that Golem and the likes of it will be useless; however, there’s a very real chance that something else eventually comes along, providing the same service, but in the currency of its users’ choosing. Such a competing platform, without the friction of being restricted to a specific token, has a very big edge on its ICO-launched competitor.

My trading tip this week is to go through your portfolio and evaluate your investments from a token-critical perspective. Get rid of those tokens that add no benefit to the product or service they are providing, and in many cases are a down-right handicap. In the end, while it may be true that an ICO could be the thing that gets a project off the ground that wouldn’t have otherwise, it may also be the thing that kills it.

What are your thoughts on market manipulation? Let us know in the comment section below!


Images via Shutterstock, Twitter.


Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”

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Crypto All Stars Brings Your Favorite Twitter Traders to the Blockchain

Crypto All Stars Brings Your Favorite Twitter Traders to the Blockchain

Blockchain based trading cards are all the rage, with one estimate placing the transaction value of ethereum games at $10 million a day. While the vast majority of these games are derivative and ephemeral, that’s not to say they can’t provide short-term entertainment. The latest addition to the Crypto Kitties stable is Crypto All Stars, which promises to bring all your “favorite Twitter shitposters” to the blockchain.

Also read: People Are Paying Thousands of Dollars for Crypto Celebrities on the Blockchain

Pyramid Scheme Meets Proof of Ego

Crypto All Stars Brings Your Favorite Twitter Traders to the BlockchainThis week’s must-have blockchain game is next week’s relic, so the odds of Crypto All Stars standing the test of time seem remote. In the here and now though it’s a shameless but amusing take on the meme birthed by Crypto Kitties back in December. The project of Twitter trader Crypto Randy Marsh (who naturally includes himself as one of the cards), the game features many of the cryptoverse’s loudest luminaries including Crypto Cobain, Bitfinexed, and Ari Paul. Thanks to their desire not to be usurped by their peers, many of the “celebs” have already bought their own cards several times over.

Crypto All Stars Brings Your Favorite Twitter Traders to the Blockchain

There are many ways to make money in the cryptosphere, and appealing to traders’ natural vanity is a clever ploy. For the proles who don’t possess these “legendary” shitposters’ follower count or portfolio, there’s the satisfaction of at least getting to own one of the Crypto All Stars’ unique contracts…until the next sucker buys it off you at least. The prospect of witnessing crypto OGs slapping down $10,000 of ETH at a time to prove they’re the whales they purport to be is strangely satisfying.

Crypto All Stars Brings Your Favorite Twitter Traders to the BlockchainFor “players” who feel that 5 ETH for The Crypto Dog (avatar: a dog wearing sunglasses) is a tad pricey, there are cheaper bargains to be had in Ether Tulips, Crypto Kitties, Crypto Titties, Tron Dogs, and many more blockchain trading games. Open Sea marketplace has thousands of the virtual cards for sale. Ether Tulips is about to launch player battles, while strategic card based MMO Neon District is launching soon. Given the amount of ether wasted weekly in ICO exit scams and pyramid schemes, games like Crypto All Stars are arguably one of the better uses for the ethereum network.

What’s your favorite crypto trading game, or would you rather not waste your ether? Let us know in the comments section below.


Images courtesy of Shutterstock, Open Sea, and Crypto All Stars.


Why not keep track of the price with one of Bitcoin.com’s widget services.

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United Bitcoin May Be the Most Controversial Fork to Date

United Bitcoin Maybe the Most Controversial Fork to Date

Back on December 12 the well-known developer Jeff Garzik launched a Bitcoin Core (BTC) based fork called United Bitcoin (UBTC) after Segwit2x failed. At block height 498,777 the snapshot took place, and the UBTC network began just like the rest of the forks in existence, but claiming the tokens is far more complicated than one would think.

Also read: The 65 Percent Price Dip Has Made ‘Bitcoin Whales’ A lot More BTC

The Promises of United Bitcoin

United Bitcoin Maybe the Most Controversial Fork to DateA few months ago we reported on the UBTC project created by Jeff Garzik, his partner at the blockchain company, Bloq, chairman Matthew Roszak, and Bitbank Group’s Songxiu Hua. The team says it plans to create a credit currency system pegged against various fiat currencies alongside a native smart contract feature. The entire network is modeled after the bitcoin core blockchain prior to December 12, and all active wallet holders are able to receive UBTC at a 1:1 rate. The catch is inactive wallets will go towards the UB Foundation to support innovative blockchain development.

Over the past few weeks, the UBTC team have made some videos detailing their project’s goals to be serious cryptocurrency contender. One particular documentary shows Garzik describing why he thinks UBTC can be a digital asset that engages and unites with the entire cryptocurrency ecosystem. “If I could start with a clean slate what technologies would I include?” Garzik asks an audience during the video. Matthew Roszak says that United Bitcoin will encompass three really important pieces technology, community, and tokenomics by relying on cross-industry innovation.

United Bitcoin: Jeff Garzik's Fork Represents a 'Clean Slate'

One Out of Only Two Miners Controls 70% of the Network’s Hashrate

United Bitcoin: Jeff Garzik's Fork Represents a 'Clean Slate'So far the network has minimal infrastructure and community support. At the time of publication, there are only two miners who are processing UBTC blocks; an unknown entity and the mining pool BW.com. The mining pool BW.com has more than 70 percent of the network’s hashrate. The network’s total hashrate is only 50,811.47 TH/s and block intervals can range from an hour and a half, to occasional sporadic 20-40 minute blocks. The network has an extremely low amount of users as there are only 20 pending transactions right now. Blocks are averaging roughly 20-100 transactions, and most block sizes are well below 1MB even though UBTC has the capacity for 8MB blocks.

UBTC has its own full node wallet client for Linux, Windows, and Macintosh operating systems and the source code is available for review. According to the distribution repository, there will also be a lightweight client release soon. There are three other wallets that support the UBTC protocol. As far as exchanges most of them are based in Asia, and a great majority of them are unknown and exchange very little trade volume besides the exchange Okex. At the moment, according to Coinmarketcap statistics, one UBTC is worth $82 USD.

Required Identity Verification and Claiming Inactive Addresses: United Bitcoin Is the Most Controversial Fork to Date

The most controversial part of the project is the opt-in airdrop feature which basically means a bitcoin holder must give up some form of identification to obtain UBTC. In order to even get started with UBTC, a user must supply a valid email address and a mobile phone number. After this process, the registrant has to have a valid bitcoin address as well to receive the 1:1 distribution. Another contentious issue with UBTC is the Foundation’s claiming of “unused addresses” which means after a period of time inactive addresses will be used for future development. At the moment the team has added a “grace period” which has extended the timeframe so bitcoin holders can claim their UBTC.

Because of the ‘KYC-like’ requirements and the fact that the development team will claim Satoshi Nakamoto’s and the inactive addresses of many whales, makes UBTC one of the most vexed bitcoin forks to date. These two tendentious issues plus the fact that the network has very little infrastructure may have a hard time gaining the crypto-community it hopes to progress.

What do you think about the UBTC project? Would you claim these airdrop tokens knowing you have to tie your identity to the platform? What do you think about the development team claiming inactive addresses? Let us know what you think about this project in the comments below.


Images via Pixabay, United Bitcoin archives, and website.


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Coingeek Launches £5 Million Bitcoin Cash Tokenization Contest

Coingeek Launches £5 Million Bitcoin Cash Tokenization Contest

A race to tokenize the bitcoin cash (BCH) cryptocurrency has just been triggered. Developers can now earn a whopping £5 million by bringing this advanced functionality to the cryptocurrency ecosystem, which means we might soon see smart contracts implemented with BCH. Tokenization can bring everything from land deeds to ICO coins onto the BCH network.

Also Read: Roboforex Adds Bitcoin Cash and Three Other Cryptocurrency CFDs for Trading

Bitcoin Cash Tokenization

Coingeek Launches £5 Million Bitcoin Cash Tokenization ContestCoingeek, the cryptocurrency company led by the billionaire entrepreneur Calvin Ayre, has launched a bitcoin cash tokenization contest offering £5 million in prize money. This competition is meant to elevate BCH from a cryptocurrency to “the cornerstone of the globally distributed economy.”

The company published a paper which defines the requirements for winning the contest and scope of the challenge for interested participants. In the paper Coingeek explains it is taking this move now because bitcoin cash has already demonstrated that on-chain scaling is possible and can be used to support a broader range of transactions than just payments.

State of the Art Smart Tokens

Coingeek Launches £5 Million Bitcoin Cash Tokenization ContestTokens can represent real world assets within a blockchain, allowing holders to make transactions based on them. They are typically executed with some form of smart contracts and can come in a variety of possible traits and functionalities, such as indivisibility, exclusivity in time and more.

The current state of the art for tokenization with regard to the Bitcoin-derived blockchain networks is best captured by the “coloured coins” concept, the company explains. Other cryptocurrencies that have been optimized for use with tokenization (like ethereum which is most used for ICOs), typically depend on smart contracts. However, Coingeek says that none of these solutions have yet created the optimal solution, with them all struggling with poor scalability, lack of documentation and controls, limited auditability, little transparency, and being prone to token loss.

The challenge for the content participants is to design a system that delivers a solution that permits token creation, issues tokens to users’ wallets, redeems tokens from users, and securely destroys tokens into the originating cryptocurrency at the end of that token’s life cycle.

Is tokenization going to be a game changer for bitcoin cash? Tell us what you think in the comments section below.


Images courtesy of Shutterstock.


Do you like to research and read about Bitcoin technology? Check out Bitcoin.com’s Wiki page for an in-depth look at Bitcoin’s innovative technology and interesting history.

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PR: Bitcoin’s Parallel Ecosystem – Claim Your Bitcoin Parallel (BCP) and Bitcoin Parallel Clearing (BCPC) on February 12th 2018

Bitcoin’s Parallel Ecosystem -- Cla

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

Looking back the development of Bitcoin in the past 9 years, there have been problems such as privacy protection, slow transaction speed and high transfer fees due to increased users and network effects. The scalability debate in recent years has greatly slowed the development of the Bitcoin community.

Though a number of Bitcoin forks claim to be addressing some of the problems, most focus on one single problem. By diving into Satoshi Nakamoto’s white paper and reflecting on the existing ecosystem with the envision of the blockchain ecosystem in the future, we put forward Bitcoin Parallel, a concept of virtual currency ecological chain in parallel blockchains.

Bitcoin Parallel, or BCP for short, a brand new public chain rather than a fork, is the next generation of decentralized global parallel blockchain ecosystem with a total supply of 21 million. With the six major characteristics of blockchain: shared ledger, consensus mechanisms, traceability, tamper-proof, immutability of completed transactions and smart contracts, BCP completely inherits the idea of Satoshi Nakamoto, but adopts a more optimized algorithm for PoW (Proof-of-Work). With the same 21 million circulation limit and the same 4-year reward halving mining schedule with BTC, BCP raises the block generation speed from 10 minutes to 2 and half minutes. It also plans to utilize an optimized CryptoNight algorithm that will revolutionize the current crypto system. Instead of having large mining pools of over 51% GPU hash power threatening BTC, there will be a BCP society and opportunities will be given back to the global P2P individuals with CPU. As the main chain, BCP undertakes the asset routing function of the entire ecosystem.

Bitcoin Parallel Clearing, or BCPC for short, with a total amount of 46.6 billion coins, is temporarily running on Ethereum’s public chain (ERC20 Tokens). In the next phase, we plan to implement a completely new public side chain of POI + voting rights + leasing mechanisms + IMO mining nodes with smart contracts and to achieve the compatible mining (mining of two coins using one machine) of main chain BCP and side chain BCPC. The block generation time of a BCPC block will be 3 seconds, which can support a transaction speed of 3,000 transactions per second enabled by high scalability. In the entire BCP system, it plays an important role as a media of circulation. With its strong support for fast transaction capabilities and the use of the main chain currency (BCP), BCPC will be able to achieve rapid micropayments. In the future, BCPC will work with the BCP main chain to achieve the interconnection of transaction records and statistical data and provides transaction trails for the financial industry in the real world. Users can experience a smooth exchange of virtual currencies and mainstream fiat money through BCPC.

Side chain technology is characterized with independence and flexibility. Since the data on the side chain is independent, the transactions will not cause data explosion and become a burden to the main chain. In that sense, it is actually a natural sharding mechanism which is able to support more transactions and address the requirements to build the ecosystem. All blockchain parameters such as block intervals, block rewards and flows of transaction fees can be customized to expand the application scope and innovation dimension of blockchain technology. In this way, the blockchain technology can create various smart contracts easily and achieve the goals of cryptocurrency financial ecology in a better and integrated way. As BCP develops, a series of value services will be provided in the future.

To ensure the stability of the BCP system and facilitate the BCP ecosystem, the Bitcoin Parallel Foundation is estimated to deliver energy coins BCP and BCPC at 507,000 block height to Bitcoin holders. But you’ll need to claim your energy coins on our website by yourself. It’s estimated to start at Feb. 4th 14:00 GMT 2018 and the specific time is up to the block network. BCP will be delivered at the rate of 1 BCP to 1 BTC and BCPC of 1,000 BCPC to 1 BTC. The Bitcoin Parallel Foundation reserves the right of final decision on the interpretation of the things mentioned above.

Please follow our website for detailed information.

Contact Email Address
roger.li@bitcoinparallel.org
Supporting Link
www.bitcoinparallel.org

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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