ConsenSys Codefi’s Activate To Launch Its “Proof-Of-Use” Token Platform With SKALE

  • Activate to limit partnering projects based on a maturity level gauge and how ready partners are to launch
  • Tokens to be issued to only dedicated users as they implement proof of use

Activate, a Consensys backed token platform, has announced making its maiden token launch with the SKALE mainnet. Built by the ConsenSys Codefi, it is set to allow the users inputs in the sales of the tokens.

SKALE supported by Ethereum is a secure and decentralized network built for the Decentralized App (DApp)Developers. Their protocol of sharing computational load among different chains is largely based on proposed Ethereum shard system.

The platform’s main objective is enabling parties to securely host the tokenized networks among active users. It would effectively allow individuals to directly take part in of trading tokens while staking in the network as explained by ConsenSys’ Global Lead of Token Architecture Ejaaz Ahamadeen.

“Activate is a platform that allows anyone to engage and participate in decentralized networks. That’s kind of like a statement as a whole. And the best way to think about it is it equips you with the means to purchase, manage or use your utility tokens through its entire existence.”

With current projections from the Activate team suggesting that the Token sales would occur as soon as mid-year. According to the Strategy Lead for ConsenSys Codefi, Mara Schmiedt, Activate seeks to instantly assign tokens to active participants in the Network as soon as Activate’s partners have launched.

However, Activate follows various criteria while choosing partners. They intend to focus on the maturity of the project in that they should be ready to launch their network as soon as they come onboard. She said,

“We are very limited to the projects that we can work with due to many factors, the primary one being maturity of the technology. We’re not going to support a project who’s not going to mainnet soon.”

Proof of Use

The tokens will be distributed on a proof of use basis. This ensures that participants actually purpose to use the token. This requires the users to give a timeline of when they want to use the tokens before you actually get to use them meaning that they have to surrender up to 50% of their tokens to the mainnet for at least 3 months as was further explained by Mara Schmiedt.

While Skale’s CEO, Jack O’Holleran was adamant that money was not their top priority at the moment. They want to focus on first adding participants on their mainnet.

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Author: Lujan Odera

Will 2020 Be The Year of Staking? Leading Crypt-Assets & Wild Predictions of Staking Space

  • Staking is an incentive mechanism by projects to encourage users to participate
  • 2020 would see users from POW world exploring staking for the first time
  • With Ethereum slated to switch to PoS crypto space will be forced to reckon with staking sooner – Binance
  • Experts predict, staking fees to be close to zero by end 2020 & emergence of staking derivatives

Staking gained momentum in 2019 with Tezos (XTZ) having its more than 70% circulating supply being baked that has its prices soaring. Cardano has been the latest one to launch Shelley incentivized testnet that saw 5 billion ADA tokens staked.

This has Binance Research’s latest report covering “The Rise of Staking” and if “staking’s maturing ecosystem is compelling enough for widespread adoption”?

Staking is basically locking the cryptocurrencies to support the operations of a blockchain network and receiving rewards. It is used as an incentive mechanism by projects to encourage users to participate.

2020 would see users from POW world exploring Staking

Staking was first introduced as a concept in Peercoin (PPC) that started as a hybrid of Proof-of-Work/Proof of Stake chain only to transition to fully PoS.

In its research, Binance segmented stake-able coins into five core categories, Proof of Stake (PoS) like Algorand, Delegated Proof of Stake (DPoS) with assets like ICON and EOS, Distribution model with assets like Stellar, Dual-coin systems with assets like NEO/GAS, and Masternode with assets like Dash, TomoChain, and ZCoin. Caleb Kow, CEO of Tezos Southeast Asia predicts,

“Many who never came from the POW world would also start to explore staking for the first time and enjoy the seamless process.”

Staking Amount beats DeFi by 548%

When it comes to the largest 10 crypto-assets that support staking represents a cumulative market cap of $25.8 billion. Excluding Ethereum, the cumulative staking market cap is worth $11.2 billion with $6.4 billion being staked.

“With Ethereum slated to switch to Proof-of-Stake in the not-too-distant future, the blockchain space may be forced to reckon with staking sooner, rather than later.”

The highest yields are offered on Synthetix at 61.9% and Liverpeer at 102.7%, as per StakingRewards.

Staking rewards unlike block rewards in PoW blockchains are distributed to PoS participants often proportionately to users who stake coins on the network.

In comparison to the growing DeFi sector where $982 million is licked in volume, a whopping $6,368 has been staked.

But according to Xin Xu, CEO of Sparkpool, it will be very interesting to look into how to combine DeFi and Staking together.

When it comes to staking ratio, it is the amount staked at a single point in time divided by the circulating supply to the crypto.

With 81.7% ratio, Synesthetic is at the top. Meanwhile, among the assets listed on Binance, Tezos, Algorand, and Cosmos have the highest staking ratios at more than 70%. Coins like Tron and Qtum, on the other hand, have a staking ratio of under 25%.

Staking Derivatives & Zero Staking Fees Coming Up?

When staking coins, users have to consider the risks of unlocking restrictions, frequency of reward payouts, custodianship risk, opportunity costs, staking reward rate in comparison to holding other coins, security risks, interest rate uncertainty because “what you see may not always be what you get,” and price uncertainty.

Also, you can either go for staking pools which are much like mining pools where on-chain addresses delegated candidates to accept pledge support or delegation services. Dedicated custodian solutions are another option that can help to stake on the user’s behalf in exchange for a cut, similar to delegation services.

However next year, according to Kelvin Koh, Co-founder and Managing Partner of Spartan Group’s prediction,

“Staking fees will be close to zero by end 2020 and half of the independent stakers will be out of business.”

It would, however, just be the starting as Colleen Sullivan, CMT Digital emergence of staking derivatives just like Tiantian Kullander, Founding Partner of Amber Group. Kullander sees this happening after the cryptos like XTZ, ATOM, DOT, ALGO prices sees decoupling from the rest of the space.

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Author: AnTy

Death By Abandonment’ Is Reason Most Crypto Projects Die Before Their 2nd Birthday: Longhash

In efforts to understand the major causes leading to the demise of many crypto projects, blockchain education platform Longhash dug into Coinopsy’s data to come up with conclusions on what kills crypto projects.

The analysts examined 700 crowd sourced projects in a span of 8 years and came up with a conclusion that majority of crypto projects had died due to abandonment which accounted for 63.1% of the dead crypto projects.

According to an article released by Longhash, crypto projects dying as a result of abandonment were mostly due to the investors halting trading an asset which led to volumes dropping to zero. These projects, on average, had a lifespan of about 1.6 years.

The research also identified that scams accounted for about 29.9% of the dead crypto projects making it the second most prevalent cause. The researchers found that 2017 recorded the highest number of scams in the crypto industry. The number of projects dying due to scam increased five-fold as per the researchers as indicated below.

The report by Longhash also identified three people who were severely implicated in three distinct dead scam projects mentioning Bitcointalk user Crunck as well as another person going by the name Daniel Mendoza.

The other category of dead crypto projects identified by Longhash was joke projects like AnalCoin, BieberCoin as well as BagCoin. This category accounted for 3.2% of dead crypto projects and had an average lifespan of about 1.4 years.

Longhash’s report indicates that its difficult to quantify the exact number of dead crypto project since most of the data is crowdsourced. The report also notes that there is little consensus on what constitutes a dead crypto project.

Cointopsy has listed 705 projects as dead, DeadCoins has listed 1779 as dead while CoinMarketCap has more than 1000 projects that record less than $1000 every day in terms of trading volume as near their death or lifeless.

Cointelegraph reports that in its recent research, it was found that the most common causes of crypto projects deaths were low liquidity, fraud, lack of utility as well as poor management.

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Author: Joseph Kibe

Revisiting Amazon Move Into DLT With Quantum Ledger Database And Managed Blockchain

Amazon has recently provided some more information about two of its blockchain-related projects. They are the Amazon Managed Blockchain and the Amazon Quantum Ledger Database.

The preview of these new products points out that they are still in a very early phase, but that Amazon is getting consistently more interested in the blockchain technology and that it plans on using it more and more in the near future.

During the presentation, two aspects were especially showcased: the immutability and the verifiability of the blockchain technology. People can use it to enter immutable records and easily verify them in a decentralized manner. This trust aspect is why the company is so interested. Several other companies can use this technology for many purposes.

One caveat of the presentation is that Amazon keeps using the term “quantum ledger” while quantum technology is still not here, which means that it is more of a buzzword than anything else.

The so-called quantum product (see here) was created for cases in which a complete blockchain is not needed, only parts of it. In this case, some of the immutable technology can be used, but in a more centralized way, so that a single entity controls the data. What there is of something really new here is that the database allows for inserts, but not for deleting information.

Amazon Managed Blockchain, (see here) on the other hand, is the real thing. A complete core blockchain product that can be used by companies that are interested in private blockchains. This platform is set to initially have support for Ethereum and the Hyperledger Fabric technology. While Hyperledger is for companies that want to create a private network, Ethereum is better for creating open ones.

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Author: Gabriel Machado

TON Final Test Run To Be Released As Developers Say Network Is Compatible With Ethereum

Telegram’s blockchain and cryptocurrency projects, one of the most anticipated in the industry, is approaching its release date. Telegram is one of the biggest social media companies, and it is popular for its privacy and encryption functions. The social media giant’s crypto project is expected to be one of the most valuable in the crypto world when it goes public.

The mainnet launch for the blockchain project, named the Telegram Open Network (TON), is expected on the 31st of October. TON’s trial users expect to receive the node running code on the 1st of September as Telegram moves into the final phases of the project’s preparation.

Comparability with Ethereum

TON Labs has been tasked with developing the network and the tools that developers will need to build new systems of their own. The tech startup received considerable support from investors during Telegram’s token sales, and this has allowed the tech firm to develop more tools for developers.

Various tools have been announced, and each one of these will appeal to a different sector of the blockchain and crypto industry. TON Labs recently announced a Solidity compiler, which will allow Ethereum based applications to be built and run on TON.

Alexander Filatov, CEO of TON Labs, said that the Solidity compiler for Ethereum is one of the most challenging things they’ve had to build. The tool will allow developers in the Ethereum community to move everything they have written for Ethereum to TON. TON Labs has been testing Solidity compiler since July and TON trial users can expect to access this tool.

Final Pretest

The TON version being released to TON trial users on the 1st of September is expected to be the last in a series of tests run by TON Labs.

Filatov said that this test run might be the most important of all the ones they’ve run because they have limited time to fix any bugs that may be identified during the tests. There is little time between the release of this test run and the launch of TON’s mainnet.

According to the user agreement signed between Telegram and its investors, the social media company will have to refund all those who bought tokens if the mainnet does not launch on the 31st of October. This makes the trial run being released on the 1st of September even more important because if anything goes wrong, it puts Telegram in a predicament.

Through its token sales, Telegram raised about $1.7 billion as investors poured in to get a piece of the highly anticipated project.

Telegram’s tokens, named GRAM, are already trading on unauthorized markets where investors are already fetching high profits for the tokens before the network is launched officially. Telegram warned that these investors are in contravention of their user agreement and they risk losing their entire share of the GRAM token.

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Author: Ali Raza

Ex-Coinbase Executive To Lobby For Facebook’s Libra and Its Blockchain Policy

Facebook is trying to approve its new Libra projects at all costs. Now, the social media giant has started to hire several lobbying firms to influence U. S. lawmakers to approve its newest token Libra.

FS Vector was the latest of the advisory companies hired by Facebook. The company will lobby with the Congress for the approval of the token and John Collins, who was the former head of policy of Coinbase, will be the one leading the Facebook account.

Before working on Coinbase, Collins was a part of the U. S. Senate Committee on Homeland Security, so he probably has some important contacts in Washington, something that Facebook would certainly use.

This comes at a time in which Facebook is striving to appease regulators and lawmakers. Maxine Waters, a Democrat from California, for instance, has recently talked with the Libra Association and affirmed that she was still unconvinced about the plans of the social media giant for its token. This opinion is shared by many regulators around the world.

In order to clear the air and get some allies, Facebook has started its hiring spree. Several lobbying firms were hired before FS Vector entered the team. According to reports from the news site Politico, Facebook had spent at least $7.5 million with companies such as Cypress Group and the Sternhell Group before this month.

Other companies that were also hired by the company include Off Hill Strategies and two law firms, Bryan Cave Leighton Paisner and Davis Polk. Now, we have to wait and see if all this effort will pay off or not.

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Author: Gabriel Machado

Eleven New Crypto Projects Join Messari Disclosures Registry Including ADA, LSK and Beam

A total of 11 new projects have announced this week that they joined the Messari Disclosures Registry. The registry includes several projects, the most popular new ones are Cardano, V Systems, Lisk and Beam, all which are in the top 100 crypto projects by market cap. Akropolis, Fusion, Keep, Permission, Orbs and Elrond were also added.

With these new projects becoming a part of it, the registry now has a total of 54 projects. Back when it was launched at the end of last year, the Messari registry had only 12.

The Messari Registry

The registry was created to bring more transparency to the crypto market. Each project can decide on its own whether to participate. If the project does participate, they disclose information about their business to investors, which can check the database at any time before they invest in it.

According to the founder of Messari, Ryan Selkis, being able to find basic information about cryptocurrencies is essential to make good investments, which are able to let the industry move forward.

It was in order to distribute information freely that the registry was first created back in 2018. With the new companies that were listed now, the Messari Disclosures Registry is set to become even more important. Cardano alone has a market cap of over a billion USD and a large community, so its entrance is bound to attract more curious investors to the database.

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Author: Daniel W

Fidelity International Will Soon Enter the Cryptocurrency Space with Digital Asset Trading Desk

Fidelity International Will Soon Enter the Cryptocurrency Space with Digital Asset Trading Desk
  • More companies in traditional finance sector are launching projects that connect them with the cryptocurrency industry.
  • Fidelity International exec Anne Richards discussed a crypto-based trading game within the company while at a conference.

With the increased popularity of the cryptocurrency market, it should come as no surprise that traditional finance companies are choosing sides. Fidelity Investments is one of the more innovative companies, as their subsidiary Fidelity International gets closer to entering the cryptocurrency space. According to reports from Ethereum World News and others, Fidelity Investments has already set up Fidelity Digital Assets, a custody operation.

Reports from Financial News indicate that someone close to this matter confirmed the company’s interest in blockchain technology. The same source added that the trading desk for the company is almost prepared to go live. The fact that the company has its own fantasy crypto trading game for staff at the international extension is proof enough that the fund manager is welcoming to cryptocurrency.

Players of this game have to build a crypto portfolio, starting with £10,000 in virtual money. To be eligible for cash prizes, the participants have to gain the biggest returns. Presently, there are already two-thirds of the 1,200-member staff at Fidelity International that have gotten involved.

This trading game was only recently publicized by chief executive Anne Richards at an industry conference last month. Richards stated,

“We have a bitcoin trading game that we use internally, as a way of teaching people about distributed ledger technology and digital tokenization, which ultimately will be an important part of the whole financial system going forward.”

Based on these comments, and if Facebook had anything to do with the recent surge in Bitcoin’s price, then Fidelity’s impact on Bitcoin’s price could show a similar effect.

Many institutions are starting to get involved in the cryptocurrency market, and specifically Bitcoin, which is why some experts believe that they were the key buyers on the sidelines during the crypto winter. With Fidelity’s work in their Digital Assets platform, they will be helping other institutions to get involved in the sector.

If Fidelity were to finally launch products or even just use distributed ledger technology, it would easily establish the brand as a leader in the fund management industry. There are still major legacy costs in this industry, and paper documentation is still maintained. Interoperability concerns are a big reason why the implementation of blockchain has been delayed for this long but choosing to get involved could easily be a big moment for the whole financial sector.

Furthermore, Fidelity’s actions could impact both retail and institutions, which could bring on the launch of mutual funds. However, as the SEC continues to shut down the idea of implementing an exchange-traded fund, these efforts could ultimately be thwarted.

Teana Baker-Taylor, the executive director with Global Digital Finance, spoke with Financial News about the plans that Fidelity International is involved in. Baker-Taylor said,

“This signals to the market that traditional financial investment in digital assets is likely to increase and they intend to maintain their institutional first-mover advantage, providing access to digital assets to their mutual fund and pension clients, as well as private and institutional investors.”

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Author: Krystle M

Bitcoin Pre-Paid Cards with a Conversion Option for 10 Fiat Currencies by The White Company & Paxful Launches

Bitcoin Pre-Paid Cards with a Conversion Option for 10 Fiat Currencies by The White Company & Paxful Launches

Partnerships have continued to be a fundamental indicator of growth and stability for projects within the blockchain and cryptocurrency space. One recent collaboration by Paxful, a digital coin exchange, with The White Company (TWC) is expected to tap more unbanked individuals into crypto.

TWC which is a New York based Fin Tech firm specializes in developing blockchain-oriented products for both supply and demand stake holders interested in leveraging the new technology.

This move is a significant milestone for the crypto space as clients will have the option to convert their BTC to 10 different fiat currencies. So far, the most pegged currency (USD) is featured amongst others like the Australian dollar and Swiss Franc.

Elizabeth White, founder and CEO of The White Company, noted that the partnership is set to facilitate the inclusion of millions into the digital asset ecosystem through Paxful’s P2P market. She went on to add that;

“Together we can bring all the benefits of banking without the high costs to developing countries and the unbanked, as well as promote the usability of cryptocurrency worldwide.”

Bitcoin; The Game Changer in Banking!

The on-boarding process for this platform is quite simple, clients will only be required to provide an email address and in turn receive a card with virtual prepayments.

Users will then have to make a conversion from digital currency (BTC) to fiat so as to easily use their designed cards for online purchases and service payments.

In addition, the clients can also ask for a physical card delivered to them. These will be efficient in ATM withdrawals and physical purchases from retailers. This technology appears quite lucrative to big city folks but the main targets by Paxful and TWC are developing economies whose population is mostly unbanked.

Both entities noted through a statement that their collaboration will mostly have a positive impact in African and Latin American markets where a bigger part of the population is unbanked.

Ray Youssef, the Co-founder and CEO Paxful, echoed that the firm’s mission of liberating financial services around the globe just acquired new ground with this partnership;

“Many of our customers are unable to become banked. By allowing them to change bitcoin into prepaid debit cards we are giving them the chance to participate in both the current financial system and the digital economy.”

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Author: Bitcoin Exchange Guide News Team

“Hard Core Fund” Collects 50 BTC In Order To Support Bitcoin Core Developers

“Hard Core Fund” Collects 50 BTC In Order To Support Bitcoin Core Developers

One of the main problems of developing for cryptocurrency ecosystems is funding. When the projects are not necessarily for profit and are decentralized, how do you fund them? This was also the question that was on Dovey Wan’s head.

Wan is a venture capitalist from Primitive Ventures and she considers this to be one of the main challenges of 2019 for crypto devs. Now, in order to bridge this gap and solve the problems, she has decided to gather 50 BTC (around $450,000 USD) in order to help them.

The fund will be managed by Hard Core Fund, a new initiative that was originally created by Wan and Pan Zhibiao, a former Bitmain employee. The idea is to support BTC Core developers such as Luke Dashjr and Ben Woosley, for instance.

Anyone can donate to the fund and the developers can send an email in order to outline their work and receive some sum of money for their effort in developing the technology.

According to Wan’s recent interview with Coindesk, she has collected 50 BTC for the fund so far. The fund would obviously need more money in order to fund more full-time Bitcoin developers, which is the objective. At the moment, less than full-time 10 developers are being a part of the project.

She also affirmed that, in the future, she expects more companies to be supportive of developers. Several companies such as Chaincode Labs, Blockstream and Square already do it and she affirmed that companies such as Microsoft are possibly going to become the next ones.

This fund, however, is mostly an independent initiative in order to fund these people. She affirmed that having a diverse funding model is very important because people will still be able to continue their work even if they lose one of their incomes.

The main idea is that the fund has no say on what the developers are going to create, which is important in order to maintain the decentralization of their work.

In order to be eligible for the fund’s money, you need to show your contributions to the network and they will be judged on the merits of whether you are constantly working to improve it or not. All information for submissions can be sent to Wan via GitHub or to the email of Primitive Ventures.

She affirmed that the company is currently looking for experts that have a deep understanding of the technology or that can be trained and coached by Wan.

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Author: Gabriel Machado