AP Explains:
What is bitcoin?
A look at the digital currency

Bitcoin logos are displayed at the Inside Bitcoins conference and trade show

In this April 7, 2014, file photo, Bitcoin logos are displayed at the Inside Bitcoins conference and trade show in New York. It's worth more than an ounce of gold right now, it's completely digital and it's the currency of choice for the cyber attackers who cyber attackers networks around the world in recent days. Bitcoin has a fuzzy history, but it's a type of currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.

It's worth more than an ounce of gold right now, it's completely digital and it's the currency of choice for the cyber attackers who crippled computer networks around the world in recent days. When the attackers' "ransomware" sprang into action, it held victims hostage by encrypting their data and demanding they send payments in bitcoins to regain access to their computers. Bitcoin has a fuzzy history, but it's a type of currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.

Here's a brief look at bitcoin:

HOW BITCOINS WORK

Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who "mine" them by lending computing power to verify other users' transactions. They receive bitcoins in exchange. The coins also can be bought and sold on exchanges with U.S. dollars and other currencies.

HOW MUCH IS IT WORTH?

One bitcoin recently traded for $1,734.65, according to Coinbase, a company that helps users exchange bitcoins. That makes it more valuable than an ounce of gold, which trades at less than $1,230. The value of bitcoins can swing sharply, though. A year ago, one was worth $457.04, which means that it's nearly quadrupled in the last 12 months. But its price doesn't always go up. A bitcoin's value plunged by 23 percent against the dollar in just a week this past January. It fell by the same amount again in 10 days during March.

WHY BITCOINS ARE POPULAR

Bitcoins are basically lines of computer code that are digitally signed each time they travel from one owner to the next. Transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators — and criminals.

WHO'S USING BITCOIN?

Some businesses have jumped on the bitcoin bandwagon amid a flurry of media coverage. Overstock.com accepts payments in bitcoin, for example. The currency has become popular enough that more than 300,000 daily transactions have been occurring recently, according to bitcoin wallet site blockchain.info. A year ago, activity was closer to 230,000 transactions per day. Still, its popularity is low compared with cash and cards, and many individuals and businesses won't accept bitcoins for payments.

HOW BITCOINS ARE KEPT SECURE

The bitcoin network works by harnessing individuals' greed for the collective good. A network of tech-savvy users called miners keep the system honest by pouring their computing power into a blockchain, a global running tally of every bitcoin transaction. The blockchain prevents rogues from spending the same bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional bitcoin. As long as miners keep the blockchain secure, counterfeiting shouldn't be an issue.

HOW BITCOIN CAME TO BE

It's a mystery. Bitcoin was launched in 2009 by a person or group of people operating under the name Satoshi Nakamoto. Bitcoin was then adopted by a small clutch of enthusiasts. Nakamoto dropped off the map as bitcoin began to attract widespread attention. But proponents say that doesn't matter: The currency obeys its own internal logic. An Australian entrepreneur last year stepped forward and claimed to be the founder of bitcoin, only to say days later that he did not "have the courage" to publish proof that he is.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Alan Zibluk – Markethive Founding Member

WCry ransomware worm’s Bitcoin take tops $70k as its spread continues

Three wallets linked to the code take in over 250 payments so far.

  

WCry, the National Security Agency

exploit-powered ransomware worm that began spreading worldwide on Friday, had reportedly affected hundreds of thousands of computers before the weekend, but the malware had only brought in about $20,000 in ransom payments. However, as the world returned to the office on Monday, those payments have been rapidly mounting, based on tracking data for the three Bitcoin wallets tied by researchers to the malware. As of noon Eastern Time on Monday, payments had reached an estimated $71,000 since May 12. So far, 263 payments have been made to the three wallets linked to the code in the malware.

The payment history for each wallet shows individual transactions ranging mostly between 0.16 and 0.34 Bitcoin (approximately $300 and $600, respectively), with the number of larger payments increasing over time. Different ransom amounts have been presented to victims, and the price of Bitcoin has climbed dramatically over the past week, causing some variation in the payment sizes. According to researchers at Symantec Security Response, tracking ransom transactions would have been much more difficult if not for a bug in the code that was supposed to create an individual bitcoin wallet for each victim:

Because the code failed, it defaulted over the three preset wallets. This, along with the "killswitch" code that was left in the initial wave of WCry malware, may be an indication that the malware wasn't yet fully tested when it was launched.

Chuck Reynolds
Contributor
Please click either Link to Learn more about TCC-Bitcoin.

Alan Zibluk – Markethive Founding Member

The Intersection of Social Media
and the Blockchain

Alan Zibluk – Markethive Founding Member

A New York-based broker-dealer

has asked the Securities and Exchange Commission (SEC) to propose rules to cover blockchain-based assets. According to the petition, Ouisa Capital wants the SEC to weigh in on the use of crypto tokens and resolve “the lack of regulatory clarity with respect to the regulation of digital assets and blockchain technology”.

The firm went on to write:

"Ouisa encourages the SEC to engage in a meaningful discussion of how to regulate FinTech companies that are issuing digital assets that may be deemed securities and the platforms and broker-dealers that facilitate the issuance and trading of those digital assets. We believe digital assets in several contexts are securities and that existing laws provide a mechanism for regulation of the issuance and trading of digital assets."

Additionally, Ouisa asked the SEC to create a so-called 'regulatory sandbox', through which startups and financial firms can test new products in limited settings. Unlike other major regulators like the Internal Revenue Service (which views digital currencies as kinds of intangible properties) and the Commodity Futures Trading Commission (which views them as commodities), the SEC has yet to weigh in with any kind of classification for a blockchain token. When contacted, the SEC declined to comment on the petition and whether it has begun the process of either developing regulations or responding to Ouisa's request. Given its past moves related to space – shooting down a pair of bitcoin exchange-traded funds while continuing to consider a third – such work wouldn't be surprising at this stage, however.

Further, recent comments from officials suggest that the agency is generally weighing the issue, invoking its aim of consumer protection at the same time. During an appearance last week at the North American Securities Administrators Association Section 19(d) Conference, SEC Commissioner Kara Stein remarked on the impact of technology on her agency's work, noting "we will need to adapt and make technology a bigger part of our mission". "Similarly, I hope we continue to examine the range of possible uses of blockchain technology while remaining mindful of vulnerabilities associated with potential cybersecurity risks and investor protection," she said.

Chuck Reynolds
Contributor
Please click either Link to Learn more about Bitcoin.

Alan Zibluk – Markethive Founding Member

Blockchain Tech Offers Solution to WannaCry-Type Cyberattacks,
Contrary to MSM Brainwashing

Alan Zibluk – Markethive Founding Member

Cloud-based blockchain for enterprises

   Cloud-based blockchain technology

to secure, share and track data across decentralized infrastructures within enterprises sounds magical. Gospel Technology claims to have this with the launch of Gospel Cloud Version 1, based on a private, permission led distributed ledger system. “We’re living in a new data culture where information is the most vital asset for a business. Constant reports of breaches, malicious hacking from external parties and the corruption of facts to disseminate “fake news” has exacerbated an atmosphere of mistrust in game-changing technologies such as cloud, AI and IoT. High profile brands with large security budgets even appear not to be immune” Ian Smith, the founder of Gospel Technology says.

The purpose

At the heart of Gospel Cloud is this private, permission led distributed ledger, containing:

• key enterprise data (whether this is intellectual property, personal, sensitive content, healthcare records, or whatever)
• an absolute record of trusted transactions
• access unlocked by Gospel’s Distributed Data Logic
• a real time user consent engine
• rendered real-time data views of historical changes at the data content level
• LedgerBridge, with support for SAP, Oracle, instructed filesystems, etc
• enhanced end-to-end encryption (TLS)
• delivery as a built platform (allegedly enterprises can be deployed it without extensive customization and/or services)
• blockchain agnosticism; Gospel Cloud is a derivative from the Hyperledger using pluggable consensus; this can change to align with defined threat models.

Gospel Cloud takes the distributed consensus and immutability features of the blockchain. It implements this without the time and resource draining downside of public blockchains. In so doing it removes the replication and risk of corruption, accidental deletion, and malicious data. Distributed Data Logic drives a rethinking of consent and real-time transactional approval. It takes into account not only multi-layer authentication but elements of transactional context – including identity, location, action, time, trend and other aspects – to ensure absolute trust and authentication at the point of transaction.

Combining such a private permission led distributed ledger eliminates many of the expensive, inefficient and insecure workarounds required to share data with third parties. Gospel sees these workarounds as an unnecessary if inevitable consequence of the new digital age clashing with traditional siloed solutions. Furthermore, in the new threat dynamics of the modern digital enterprise, a privately distributed blockchain offers a level of confidence which a conventional distributed database could never hope to attain in terms of efficiency and security.

Conclusion

The ability to avoid the inefficiencies of public blockchains – while continuing to deliver immutable proof of provenance, usage history, integrity, and authenticity – makes the Gospel Cloud concept simpler than a public blockchain. Placing it in a cloud environment matches the move to reduce the cost of running your own IT.

Boiled down, Gospel Cloud’s core benefits enable enterprises to collaborate securely as users upload and share sensitive data and records. The result means enterprises can comply with the far stricter rules on treatment and protection of personal data (such as those in the looming EU General Data Protection Regulation (GDPR). Delivered in a cloud the claimed utility could prove attractive, especially if performance and cost don’t become gating factors.

Chuck Reynolds
Contributor
Please click either Link to Learn more about Bitcoin.

Alan Zibluk – Markethive Founding Member

Ulster Bank.

Ulster Bank is leading a new investigation into blockchain underpinning Irish payments systems, with partners including AIB, PTSB and Deloitte. Blockchain’s impact on various industries has been considerable, most notably through its foundation of bitcoin, the largest cryptocurrency in the world. However, predictions were always such that cryptocurrencies were just the start. Everything from supply chain management to the entire financial services model would be overhauled, in theory, by a ledger system like no other.

Blockchain’s broad reach

Those predictions are already proving accurate in some areas. The shipping industry, for example, is diving deep into blockchain investigations, with billions of dollars predicted to be saved in the coming years. However, it’s banking that’s the most intriguing, with Irish institutions in no mood to be left behind at the moment. A new project at various financial institutions is exploring the application of blockchain technology developed by Royal Bank of Scotland (RBS) to improve domestic payments systems.

Called Project GreenPay, Ulster Bank is teaming up with AIB, Permanent TSB (PTSB), Deloitte and RBS to run the program. The cross-bank team has specifically concentrated on enhancements to speed, resilience and security for customers and is working on “an enhanced potential alternative platform for domestic payments”.

From lab to live

Dogpatch Labs played host to an early test of the project, with payments sent between the banks to check for performance, accuracy, and scalability. The next step is to run a pilot using live payments and explore further use cases of the technology in the international payments and foreign exchange space. “Blockchain has the potential to disrupt multiple industries for the benefit of customers, and we’re determined to investigate how we can harness this force for the financial sector,” said Ciarán Coyle, chief administrative officer with Ulster Bank.

“RBS has done a lot of work in this space with their partners through Emerald, and it was opportune for us to join with AIB, PTSB, and Deloitte to examine possible improvements for our customers. We are focused on an open collaboration like this project to help the industry make banking simpler and more secure for our customers.” There are other projects already underway in this area.

Varied approaches

While start-ups are seen as the driver of much of the innovation within the financial industry, some of the more traditional models are doing their utmost to keep ahead of the curve. Barclays recently revealed that it has opened a new fintech innovation lab in London, the largest of its kind in Europe.

Called Rise, the center will be a collaborative space for Barclays to work with start-ups, developers and some of its other corporate clients on projects to “help to create the future of financial services”. Blockchain will be a major focus. Belfast has also made attempts to build a hub of blockchain businesses, again with financial services as the target. However, this Ulster Bank project, given the collaboration with multiple major financial institutions, could prove the most interesting development of the lot.

Chuck Reynolds
Contributor
Please click either Link to Learn more about Bitcoin.

Alan Zibluk – Markethive Founding Member

A subsidiary of South Korean conglomerate

SK Group has launched a new blockchain service focused on trade logistics. Korea JoongAng Daily reports that SK C&C, an IT firm set up by the conglomerate. SK is one of the largest business cconglomerates in South Korea. According to the publication, the service will target shipping companies and other supply chain-oriented firms.

A spokesperson for SK C&C told the Daily:

"Currently, shipping companies and each land carrier have independent logistics systems that are often incompatible. In such a case, cargo management data needs to be reconfirmed and recorded every time the cargo is transferred to another sub-carrier, making the logistics process inefficient."

Details posted on SK C&C's website suggest that the platform will support trade finance applications as well. SK isn't the only South Korean conglomerate to target the market for blockchain solutions. Samsung, through its IT affiliate Samsung SDS, moved to invest in a blockchain startup last summer as part of a bid to work more closely with the tech.

Chuck Reynolds
Contributor
Please click either Link to Learn more about Bitcoin.

Alan Zibluk – Markethive Founding Member

Bitcoin is Bubble But Won’t Burst Anytime Soon: Blockchain Consultant

  

Alan Zibluk – Markethive Founding Member