Congress has written to Facebook in a letter addressed to top officials of the social media giant including the CEO Mr. Mark Zuckerberg directing it to halt its proposed new digital currency Libra and its Wallet the Calibra. This move was dutifully made following the security, trading, privacy and monetary concerns which congress considers the Libra Project could have on the US economy and the global financial system which by extension will impact every lives on the planet.
Considering the huge user base which the social media giant has, it calls for grave concerns as it has been in the news for its lacklustre approach to user privacy and security which the Cambridge Analytical saga is clearly evident to.
Over the past year, Facebook has been working secretly on its cryptocurrency project dubbed the Globalcoin to the world at that time but it was until the Mid of June, 2019, Facebook formerly announced its new global financial cryptocurrency Libra which will run on its own blockchain. Haven recruited some corporate giants cutting across several sectors of the US economy such as Uber, Spotify, MasterCard, Paypal, Ebay, etc, Facebook appeared to be on the rise to actualize its global payment system which will see billions of people getting financial services in places around the world yet unbanked.
The announcement of the Libra project and the documentations created great reverberation across the global media space with many voicing their concerns over the new digital currency while others praising the initiative of the Facebook Libra. As these were going on, the price of cryptocurrencies notably Bitcoin saw an increase upto $13,000.
The concerns of the US congress over the Facebook Libra project points to the limited and/or obscure regulatory oversight which the government has over the digital currency space and this may just be the pin that pops the balloon thus creating legislative pieces which are focused on the blockchain and digital currency industry. This the US Congress made explicit in their letter
“if products and services like these are left improperly regulated and without sufficient oversight, they could pose systemic risks that endanger U.S and global financial stability“
The issue with the Libra Project also has to do with the need to protect investors and every day users of the Facebook platforms. Insurance forms a significant part of the financial system and as such, without adequate financial productive measures against account hacks and theft, if another Cambridge Analytical issue arises in the future, billions of dollars would be lost and this would spell an inescapable doom for millions of people in the US and world over.
If Facebook complies as it should, Congress will go on examining the various aspects of cryptocurrency. Once again, excitement will brew again for those against everything cryptocurrency and those in support of it as Congress congregate and we can only expect some interesting price actions.
EOS Versus TRON, The Dapp War Continues
The world of Decentralised applications (DApps) began with Ethereum. However, it has grown to include more blockchains Networks utilizing smart contracts to build DApps on the blockchain. With over 1,800 listed DApps according to Dappradar.com TRON network and EOS seems to be on a warpath for dominance.
Before we crown the King of DApps, it is important to note that a DApp must have an open source code available to all. A DApp must also be decentralized, incentivized and have an algorithm that generates token or an inbuilt consensus mechanism.
While the battle of supremacy on DApps revolves around TRON and EOS, it is important to note that these blockchains are not so different from each other. Both Tron and EOS started on the Ethereum blockchain as ERC-20 tokens. However after creating their own Mainnet they moved all of their tokens to their own blockchain network.
It is also important to note that both TRON and EOS are built on the delegate Proof of stake mechanism (DPos). The DPos is a mechanism where the selection of block producers will be done by voting. EOS has 21 block producers of which 20 will be selected by top 20 received votes and 1 will be randomly chosen. On the other hand, TRON has a total of 27 block producers (super representatives) who have to go through voting systems. It is impressive that both blockchains allow its token holders to Vote for their Block producers or Super representatives.
TRON Foundation was created in September 2017 by its CEO Justin Sun and it’s mainnet was launched in June 2018. TRON based network claims to have the capacity of clearing 2000 Transaction per second. However, the TRON network block explorer TronScan reveals that it is currently close to 750 TPS.
On the other hand, EOS is own by Block.One, an open source software publisher. Its white paper was published in 2017 and the open source software was launched on June 1, 2018 by Dan Larimer, who is also the founder and creator of Bitshares and Steem. While EOS has been called the Ethereum Killer, however, it currently processes around 4000 Transactions per second.
According to TPS, EOS is winning the race. Also, in Q2, 2019, EOS has almost 62% DApps active in Q2. Although AnChain, blockchain intelligence firm claims that in Q1, 75% of the traffic from the top 10 gambling dApps on EOS were driven by bad bots. That means about $6 million worth of transaction volume was carried out by bots. TRON’s DApps, on the other hand, had 82% active uses in Q2, 338 out of 412 of all TRON’s DApps were active in Q2.
As at press time, EOS is the top blockchain network with 2,231,299Op activity while TRON is coming 5th with 842,442Op. However, TRON DApp TronBet is taking the lead on DappRadar with more than 3000 users and $6.1 million in its 24hour volume. EOS DApp, Dice, comes after TronBet more than 97,000 users and a 24hour volume of $266,000.
Although there have been whispers on the state of DApps and their relevance, but it is important to note that DApps are pulling their weight in the blockchain sphere. While it will be difficult to name who is King of DApps, there are other Blockchain networks building DApps that are worth keeping an eye on such as Steem, IOST, and TomoChain.
Is 2019 the Year of IEOs?
Fundraising is an important aspect in businesses and the cryptosphere has seen its fair share. In 2017, the crypto space was abuzz with the fundraising model of Initial coin offerings (ICOs). By 2018, the thrill had died down and it would seem that Initial Exchange Offerings (1EO) are taking over with over 100 IEOs launched.
Similarities Between ICO and IEO
While the ICO and IEO are similar fundraising model there are still different in terms of functionality. The two fundraising models are both tokenized forms of crowdfunding. This means that offer tokens, in exchange for investors funds. These tokens offered to investors have some utility value that the company aims to provide a service for on their road map.
However, the difference between ICOs and Initial Exchange Offerings is hinged on the fact that in an IEO, the token offering is facilitated by a cryptocurrency exchange on its platform and the exchange will eventually lists it. On the other hand, in an ICO, the company will have to fend for creating everything to sustain its token. Also, Initial Exchange Offering offer investors a unique advantage, unlike the ICO model where a lot of ICO projects did not make it to an exchange, leaving investors with no place to trade the worthless tokens they are stuck with.
The era of ICOs which spanned late-2017 to mid-2018 experienced rapid growth and success. A major factor responsible for the success of the ICO model was the easy access to global investors it offered crypto startups unlike traditional venture funding. One of the factors that lead to the slowth death of ICOs were the alarming number of scam project raising funds and duping investors. In 2017 alone, 80% of the ICOs conducted were scam projects.
Where are We with IEOs?
However, 2019 has seen a remarkable spurt in the growth of Initial Exchange Offerings. In May 2019 alone, more than $1 billion has been raised by IEO projects. Since the inception of Initial Exchange Offerings, the total global funds raised is over $1.6 billion dollars and remarkably, $1.4 billion of these funds were raised in 2019.
Binance was the first exchange to kick start the age of IEOs. The Binance Launchpad raised $7.4 million while hosting a public sale of BitTorrent tokens. It is amazing to know that Asian Exchanges have dominated the space with European exchanges coming behind. Asides Binance, other major trading platforms on the Exchange offering bandwagon include, Huobi, OKEx, Bittrex, Bitmax, Coineal, KuCoin, Exmarkets, etc.
However, Binance has managed to stay on top of the game with over 400% ROI just in May. It’s most recent Exchange Offering, Elrond (ERD) held earlier this month was selling dis more than 46 times the initial price within an hour of trading on Binance.
On the other hand, may seem that the initial hype behind this fundraising model is beginning to dwindle with investors getting worried about the utility of the token. According to ICO bench, there are over 40 IEOs conducting their fundraising. While this doesn’t mean that Initial Exchange Offerings are coming to an end, it means that more utility is demanded.
As it is, Exchange offerings as a fundraising model still need to gain solid footing for itself just as ICOs did, however, they are a viable option for fundraising and project launch. It can be safe to say that 2019 is not the age of Initial Exchange Offerings, but the start of the age.
Can Blockchain Make A Change In Developing Countries Land Registry?
Blockchain is a technology that took the world by storm and has disruptive potential. Just like the internet, blockchain was welcomed with skepticism. Blockchain has been around since 1991, and cryptocurrencies like Bitcoin since 2009 but the world is only now starting to take a firmer hold.
It is projected that by the year 2021, the blockchain market will be valued at $2.3 billion. Most governments will adopt the technology for use in various tasks such as taxes, voting, health care, and land administration.
Developing countries have a hard time keeping accurate records in their land registries. Most countries have poor ledgers, which are prone to tampering, loss, and damage. These land governance issues are a source of land disputes owing to unclear land tenures and ownership.
These disputes mean the land is unproductive owing to the wrangles, sometimes dragging on for years. These inconsistencies in registry accuracy and land tenure lead to land grabbing from unscrupulous individuals.
Developing countries’ leaders should strive to catch up with countries that are already far ahead as far as the blockchain technology is concerned. Taiwan’s congressman Jason Hsu is one man who is determined to make sure all legal barriers concerning the technology are removed. He intends to ensure that the citizens are aware of what technology can do for them and better their lives. Hsu in an interview stated that blockchain technology can do very well in developing countries such as Zimbabwe and Venezuela.
Blockchain technology has the capacity to solve all the land registry problems for developing countries.in several ways:
- Since information is stored via cryptography, it means every item on the blockchain ledger is securely coded with an identifier that is unique and provides tracking capabilities and protection.
- Blockchain technology works on based on a consensus. This means if a fresh record is added to the ledger, it has to have real connections to other network nodes for it to be verified. If it has no connection, it cannot be added.
- Blockchain’s record storage is distributed. Information can be viewed and added to the ledger by authorized persons. They do not have to rely on a centralized command or an intermediary.
How it works
A blockchain can store online all the necessary information that pertains to property sellers and buyers. It can change the land registry by eliminating the manual steps in the land registries. These steps include verification of information from the land register, contracts with real estate agents, property inspections, and so forth.
Everyone is able to see alterations made to the ledger and can access the records any time they wish and in real time. With blockchain, they are assured of the data’s immutability and security.
Digitization is critical because it allows hashing, on which cryptography has its basis. Hashing is the conversion of data into a unique text string. Most developing countries use paper-based methods that are a challenge when it comes to updating the information digitally. Any data is hashable, no matter its size or type, and the hash produced by any data is the same length.
Implementation of blockchain would mean having to deal with issues created by decades-old poor land governance. It would also need a large investment to ensure the management of this technology. It is not impossible to streamline and digitize a land registry.
Many governments in the developing countries struggle with poor land governance issues, including registry digitization. Most are still far off from implementing the blockchain technology on a larger scale. However, the technology has some potential in areas where they have already succeeded in establishing a good record of title deeds.
The emergence of technology such as GPS, satellite imagery, machine learning, and machine imagery are some good examples of possibilities for completion of land record digitalization. These technological advancements might play a big role in the establishment of blockchain land registries in the future.
Blockchain technology can help to streamline the land registries in developing countries. These land registries largely depend on manual updates. These updates are rarely accurate, are prone to tampering, forgery, and loss.
Digitization of the land registry would be a huge leap towards ensuring that the land titles and tenures are registered to the rightful owners. Disputes arising from land ownership matters would be history. Blockchain technology is immutable. When a change is made, it is permanent and cannot be reversed. The evidence is open for scrutiny and this would build trust between the public and the land registry officials.
Do you share similar views with TechWarn.com? If no what is your take on the topic? Drop your opinions in the comment section!
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Blockstack Opens the way for Crypto Startup’s funding via Global Token Sales in a Surprising approval by the SEC
Blockstack Opens the way for Crypto Startup’s funding via Global Token Sales in a Surprising approval by the SEC
In a surprising move which has astonished the crypto, finance and regulatory community, the US based Blockstack which is a decentralized computing network according to its personal description has gotten approval from the Security and Exchange Commission in the United States to carry on a token sale which it is empowered to sell to both accredited and non-accredited investors as well as US and non-US investors.
Hear that sound? that's ten thousand blockchain startups calling up lawyers to ask "what the eff is a Reg A?"
Congrats @blockstack on getting your offering qualified!
— Preston Byrne (@prestonjbyrne) July 10, 2019
This achievement has gathered applauding comments from crypto twitter considering the Commission’s hard-line on the sales of unregistered securities via token sales or ICO. Since the Commission came hard cracking down on illegal and fraudulent token sales, many Startups has been trying play safe while experiencing setbacks as the regulatory climate wasn’t clear for them. The establishment of a functional ETF is still on the commission to fully give a go-ahead to.
Blockstack has in this move paved way for other blockchain and cryptocurrency startups to have a clear direction on how to go about launching sales of government approved tokens to the general public. The Utility Token of the Blockstack project STX will be sold to the investing based on the Regulation A+.
The firm is looking at raising a sum of $28 million via this token sale which anyone who desires to participate will be legally able whether in the United States or elsewhere. A turn around and applause move on the part of the Securities and Exchange Commission on the participation of US citizens on token sales in time past. The sale will commence on the 11th of July, 2019.
The year 2017 saw billions of dollars raised via ICOs from both fraudulent projects to non-fraudulent project. All through the year, as the token sale market was booming, so the price of cryptocurrency was booming with Bitcoin touching $20,000 and Ethereum reaching as high as $1300 at it’s peak. However, with ban sweeping across the world from both government and corporations on cryptocurrency activities, the market took a dive in what has been known the longest bear season ever in cryptocurrency lifetime -the Crypto Winter.
As the market continues to rage on, with IEOs on one side, the Blockstack news is a welcome development for crypto enthusiasts who cannot wait anymore to enjoy the gains of the ICO era.
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