• Market Update: The Flippening, ConsenSys, and Dark Days Ahead
    Jordan Cumming

    Massive moves making way today in an already fragile market.  We are seeing some very interesting moves which include the further degradation of many of the crypto-communities favorite coins as well as some of the more contested coins.  Bitcoin for once doesn’t have too much going on, but it still is an indicator where the whole market is going–down.

    Lets cut to the chase–Bitcoin Cash has now been downgraded to a lower level then its new evil brother Bitcoin SV….the flippening actually happened! It is actually very interesting to see how well Bitcoin SV is doing, especially in the bearish market conditions we are witnessing in the current term.  Obviously, it is WAY to early to tell if Bitcoin cash is now dead and that Bitcoin SV is here to stay, but this is a huge let down to the Bitcoin Cash community nonetheless. You need to be careful trading these two assets but it seems in the short run Bitcoin SV is a decent hedge against Bitcoin Cash, and still not clear if it is a hedge to the general crypto market.  

    Ethereum got hit BAD.  Reasons why? Well, first let’s talk about the 13% layoffs at ConsenSys.  This was major news today, and most definitely had an impact on the price of Ethereum, while additionally adding fuel to the bearish flame in the market.  This, however, is not the only reason Ethereum is dropping. ICOs right now are getting slammed, and most of those ICOs are using the Ethereum platform as an incubator.  Simply, these ICOs need a stable means of cash flow, and having their assets locked up in the crypto-world right now is just not a sustainable solution. They are cashing out whether you like or not.  Even though this does have consequences to the entire crypto market, it is a necessary step in order for these companies to actually build their product in a way that allows them to increase there a chance of success.  

    Platform coins in general today have been hit the hardest, many for the same reasons as Ethereum.  Tron has held up the most right now, but that is looking like it will change. With double-digit losses pretty well across the board, this is one of the worst days in recent history for cryptocurrencies.  It is likely that we will recover slightly in the next couple of days, but more losses will be in the future. We just don’t have any catalyst that can really turn this market around yet.

    If you cannot handle the constant despair in this evolving market, you should leave.  If you do not have the funds to remain in the market, you should leave. If you have debt that you need to pay, you should leave.  We are in for a wild ride coming in the next months and if you are not in a position to either wait it out or buy in while it gets to lower levels you should leave.  Crypto is in an interesting place, one that is not for faint hearts. With all that being said, remember this–crypto is here to stay, but not all the coins you like will still be there in the end.  That is the stark realities of maturing industries.

  • Market Update: Where are we right now?
    Jordan Cumming

    After what was a rather good week for crypto, we start this week in the gutter.  Monday started with a new low, again with drops roughly around 5% across the board.  What exactly is this indicating for the market? Are we set for new lows? Will Bitcoin break the $3000 USD mark?  Lets us take a deeper look.

    Bitcoin, as always, is the trendsetter.  We were looking very bullish through the weekend, holding above the 4K mark and testing it several times.  Monday morning broke that, ending the bullish signs, and now leading us again back to a bearish Bitcoin. We have recovered slightly, but are still below 4K.  The market is indicating that we will visit new lows this week, hopefully staying above 3K.

    XRP followed the trend, although dropping slightly less than Bitcoin and its other competitors.  Ripple is still a very interesting watch and something that you should keep an eye on especially with word that they are partnering with a major bank in the short term.

    Ethereum fell almost exactly the same as Bitcoin, but still maintaining above the $100 USD mark.  It is evident that Ethereum is still acting like a market leader, and still represents a catalyst in both the negative and positive actions in the crypto market.  Ethereum is becoming much more interesting as of late due to the fact that Vitalik, founder of Ethereum, has been more vocal in public in his defense for the Ethereum platform and the direction it will be going in the future.  Stay vigilant with the battle between leaders in Ethereum vs. Tron.

    There isn’t much to talk about for Bitcoin Cash, but it is clear that Bitcoin SV is taking away a lot of Bitcoin Cash’s thunder.  This battle of the Cash will continue. If we end up having a nice bull run for a time period longer than a month, this battle will be at the forefront of all competing cryptocurrencies.  

    The reason that these market updates are becoming shorter than usual is due to the fact that there is just not that much going on in the market.  We are at a point where the price action is basically a fight between the true believers and those that are still trying to make quick profits in a volatile market.  This obviously won’t last forever, but we do need something that can pick up market interest so volume traded can increase. It is likely that Bitcoin and the crypto market will further be on the decline—which is actually a good thing.  One catalyst could be that cryptocurrencies are at such a discount that traders will have no choice but to start buying up good projects to add to their portfolio.

    Remember—similar to traditional markets, fundamentals matter.  We are getting to a stage where high returns on scammy projects are no longer relevant.  Be smart about which tokens you have in your portfolio.

  • The Future of ICOs
    Jordan Cumming

    Individuals who are involved in the blockchain space understand the pace and speed at which the technology, ideas, and regulation are changing.  At the forefront of that change is the ICO space.

    ICOs in the last couple of years have been one of the biggest catalysts for both the growth in blockchain projects and consequently the downfall for cryptocurrency reputation.  2017 was a year all about innovation and testing out new ideas. The blockchain community was in what we call the “collaborative stage” suggesting that many entrepreneurs didn’t exactly know how the blockchain worked but wanted to be a part of all the hype.  

    2018 has been a “weeding out phase” which has been very destructive to ideas that just aren’t feasible or necessary to implement the distributed ledger technology.  More importantly, 2018 has been very successful in eliminating bad actors from the space while reinforcing the true players in the market. Don’t get me wrong, there are still loads of bad participants in the space—hopefully these next couple of years will fix that.  

    The reason why ICOs have been so attractive to entrepreneurs is due to the fact that you can raise unregulated capital without any strings attached.  The main reason they are allowed to do this is that ICOs are clarified as a Utility instead of a Security. This poses a major issue because most of the ICOs out there is actually a Security!  This is a hurdle that governing bodies have to deal with. It’s important to remember, even though the blockchain community is all about establishing a borderless world, national borders still exist and country regulations are not uniform around the world.  

    If you participate in an ICO and purchase tokens, you technically have few rights associated with those tokens.  Sure you can sell them if you find a buyer, but you have no voting rights (in most cases) or real equity in the company.  This poses a real problem for investors because ICOs do not have the security needed to truly incentives a broad range of buyers.  If the company running the ICO losses your tokens or creates a faulty smart contract, they have no legal incentives to compensate you for your loss.  As you can see, this poses an unattractive issue for investors—especially those that have a lot of capital to spend.

    One factor that contributed to companies going the utility route of launching an ICO is due to the higher fees associated with legal compliance when adhering to securities law.  This requirement needs more capital upfront, so in most cases, a preliminary capital raises to get started.

    A not so common work around the security law is for companies to develop a dApp instead, utilizing the Ethereum platform and using Ether as a payment solution.  The reason this works is due to the fact that the SEC right now doesn’t view Ethereum as a security. Sure this is a clever way to get around securities law, but you cant work around the endless pitfalls that are commonly associated with dApps.  Distributed applications don’t have the scalability to process many interactions without bogging down the whole blockchain (remember what happened with crypto kitties…). Additionally, they aren’t being used! This might change in the future, but for now, dApps are still just an idea without many practical uses.  

    The ideal option now to appease both the governing bodies and interested parties is to start issuing Security Tokens, or STOs.  STOs are almost identical to ICOs except that they actually follow and adhere with securities law. Security tokens make it possible to tokenize securities, so financial assets such as stocks, bonds, futures, equities, swaps, and forwards can all be managed via distributed ledgers.  This eliminates a lot of the issues you see with ICOs, which include increasing transparency and security with individual ownership. An STO is similar to IPOs, except that it is completely digital.

    STOs are the talk of the town, however, the implementation of one has been tricky.  Companies are only now really starting to figure out the proper way to issue a Security Token.  There is still a long way to go, but this does seem to be the direction blockchain is going—at least in the medium term.  


     

  • Market Update: Terror for Cryptocurrencies
    Jordan Cumming

    It is not wrong to have deep feelings of shock and despair after a terrible close to the weekend in the crypto market.   Curiously, even the traditional markets are looking fairly uncertain, creating a widespread sense of FUD.

    Bitcoin looked to be stabilizing at the mid $4000 mark, however somehow dropped far below that.  As of writing this, it looks as if Bitcoin will rebound above the $4000 levels, but do we have the support needed for this?  Well, we again have to options. The neutral perspective is to see Bitcoin get above $4k and stabilizes somewhat between $4200-4500.  The positive outcome would be to see bitcoin jump up over $5000 early into next week. The more likely and negative outcome is to see Bitcoin drop around the low $3000s.  $3000 will be a very difficult wall to breach, however, so anything under $3000 is very bearish.

    Ripple took an even bigger hit this drop, probably due to the fact that it held its own very well in the last drop we saw last week.  Ripple still doesn’t look that bad and seems to have better fundamentals than most of the other coins to date.

    

Ethereum dropped below our $120 point and fell to sub $110 USD.  Unfortunately for Ethereum, it pretty well followed Bitcoins price action throughout the weekend.  The drop was obvious considering Bitcoin dropped as well. Ethereum is becoming more bullish, however, for it has defended its value all else considered very well.  

    Bitcoin Cash is still a mess, marking only a year old it sure has lost almost all if its value.  It is difficult to give any technicals about BCH, so I would stay away from it when the market is crashing.  

    We are in very uncertain times right now, not only with crypto but also with the traditional markets.  It is very important that you watch carefully how the traditional markets open on Monday, for It seems the crypto market is following similar fears.  

    At the moment, Bitcoin is dictating this market.  When Bitcoin drops, everything else drops and vice versa.  I feel that it would be the more healthy option to see Bitcoin drop to $3000 for long-term vitality.  That might give most of you a sense of fear, but there is a need to remove bad actors from the space, and this is one of the best ways to do that without creating an over-regulated market.  

  • Market Update: Incoming Ice Age?  
    Jordan Cumming

    It has been some time since we created a market update, but it seems like it is a good time to start again considering the events that have occurred in the last week or so.

    We had a long summer full of stagnation.  The sideways action was the talk of the town, and honestly a necessary break from such a volatile market in the past. In fact, for the first time in the last couple of years in the crypto market, the traditional markets actually seemed to be more interesting in terms of overall market action!  That all changed in the events of this last week…

    Lots of speculation is being passed around for the MASSIVE downturn in the market.  Most seem to think that it is completely random, others choose to believe that the most recent hardfork on the Bitcoin Cash blockchain is the culprit.  Those who believe that it is random have lots to learn about how markets tend to operate.

    Let us begin this analysis in our traditional way by looking at Bitcoin first.  

    Bitcoin was steady sitting around the $6,500 USD mark for a long time, only seeing a couple moments of it dropping to sub $6,000, and then regaining lost ground fairly consistently.  There hasn’t been any catalyst that really can explain the most recent drop, but then again there also hasn’t been anything in the market that would suggest Bitcoin should move anyways!  Still, as of writing this update, Bitcoin is sitting on an astonishing $4400 USD! These roughly level 75% lower than last years high. Should we be concerned? Well, there are varying opinions on that notion as the technical game has taken a sudden shift. It is difficult to gauge due to the increased volatility, but it would be difficult to suggest that Bitcoin can be seen under the $4000 mark.  There is a lot of support at these levels, and an active community that will be willing to defend it. That being said, if Bitcoin falls below the $4000 mark, we could be in for a cold winter…

    How about the internet killer Ethereum? Well, as you can see by the recent rank drop to 3rd in market cap, and the incredible hit to the price that has been going on, Ethereum is dropping like flies.  ETH is following a similar pattern to Bitcoin, but with more downward action. A lot of Ethereums downward action is due to the ICO space and lack of roll out on scaling solutions. Sitting around $130 USD, we are actually looking at a much-needed drop in price for Ethereum.  ETH will continue to follow market trends, but a good value to keep in mind is the $120 USD mark–we will keep you updated if we hit these levels!

    Ripple or XRP seems to be the heavily armored coin, not only surpassing Ethereum for 2nd place but also maintaining its value relatively well.  I know there are a lot of Ripple haters out there, but you have to admit that they are well positioned in the market—and that is confirmed by how they are performing in the market downturn.  Ripple is actually being used and has actual value to purchasers. There shouldn’t be too many worries with Ripple, and it is highly likely that it along with Ethereum will be battling for 2nd place in the weeks to come.  

    Finally, we can talk about Bitcoin Cash.  Is there really much to talk about? Well, there is and there isn’t.  Bitcoin Cash has a functional product, and somewhat of a scaling solution to transactional volume.  This seems irrelevant to what actually is going on with the Bitcoin Cash community. Even in a highly volatile and manipulated market like crypto, the market still seems to see through the BULLSHIT.  Bitcoin Cash is founded on deception and has transformed itself into a con coin. Many people are blaming this market crash due to the Bitcoin Cash hardfork. This might seem plausible, but there are more factors that contribute to wide-spread market fear.  BCH has dropped the most out of all the major projects and is likely to continue. We will go into more detail about what is needed to be done in the Bitcoin Cash community, but that is for another day. For now, keep a close eye on the BCH price action and market cap ranking…it should prove to be very interesting.  

    The crypto market has entered a period of interesting analytics, and uncertainty is a key driver to all the volatility.  Sure the prices of all these projects are rapidly declining, but at the same time talent entering the blockchain world is still skyrocketing!  Don’t forget, that even in the worst times there are still positives to account for.

    We will provide more frequent market updates now, so make sure you stay tuned and stay positive!

  • Green Mining in a Growing Decentralized World
    Jordan Cumming

    There is a lot going on with mining including disruptions to the mining payoffs and potential issues with centralized mining pools.  Not dissimilar to other blockchain markets such as ICOs or scaling solutions for major blockchains, mining is also in an innovative stage.  Issues such as the environmental impact of large mining facilities are being complemented by the “green energy” movement.

    Crypto-mining is getting out of control when considering the extensive use of energy required to solve these increasingly more difficult optimization problems.  As the hash difficulty increase, the amount of energy required also increases.  Proof of Work algorithms have proven to be expensive to verify—but that doesn’t mean companies are finding ways to cut the energy costs and cut the negative environmental impacts.  The blockchain mining community is taking climate change dead seriously, and here are some energy sources they are interested in.

    Solar/Wind/Geothermal Energy

    Solar power has become a fascinating way to generate electricity without burning fossil fuels.  The biggest problem in the past with solar technology were the costs associated with it.  It used to be very expensive to install solar panels.  An even more delicate issue was the storing of excess power for later use.  Storage is still an issue and also presents environmentally unfriendly components.  Solar is still on the rise in the crypto-mining operations, however, unfortunately, the sun doesn’t always shine.  In places that it does, a different energy-extensive problem is exposed and that is the cooling of mining rigs.   Still, mining companies are using Solar energy to power their mining operations.

    Wind Power is also a familiar process of green energy generation.  Similar to solar and the sun, wind power needs wind!  Additionally, the wind turbines aren’t as efficient as one would hope to expect, and the longevity of the turbines is, to say the least quite sad.  Technology changes will be expected in the future, but as of now, the wind is not the best form of renewable energy to utilize in mining operations.

    Geothermal energy seems to not get a lot of attention in terms of energy generation, however, it is one of the better solutions that exist today!  Geothermal is a great renewable source that can provide a steady and constant flow of energy.  Exogenous factors such as sunlight or wind aren’t a prerequisite for energy production.  The main issue with geothermal (besides the expensive initial costs) is that it is only prevalent in specific locations.  The decentralized aspect that solar and wind provide is much greater than geothermal.

    Hydro/Tidal

    It goes without saying that Hydro-electric power has been a game changer for high output energy production.  The energy production is constant and cheap to produce all else given.  The main issue with hydro is that the start-up costs are high, and it is location specific.  On top of that, there are environmental issues with ecosystem destruction, but those issues are minimizing more and more as technology increases.

    An obvious issue with tidal energy is the location-specific aspect, and also high costs associated with the entry.  However, this is becoming a very attractive solution due to the large energy productive coasts and its inherent vastness.  It is no secret that most of the world’s population live within reach of the oceans or large bodies of water, so why not use those tidal forces for the forces of good?  Tidal energy is still somewhat of a new concept, but the grasp is enormous. This might be a major player as an energy provider to crypto-mining facilities.

    Just a side note—one of the big problems with location-specific energy sources is the energy loss from long grid commutes.  The energy that has to travel long distances to its destination will lose a lot of the efficiency, making it costlier to produce.  Due to this, it seems that the utilization of multiple forms of green-energy sources is a primary option.

    The future of crypto-mining is bright.  It is also green.  The culture in the blockchain community has made that very clear.  Don’t get me wrong, there is an aspect of the cryptocurrency mining field that is scary (mining concentration, the emergence of PoS, etc.) but overall it is an optimistic sector in technology to get into.

  • How to Stay Safe in the Crypto Space
    Jordan Cumming


    I don’t think it needs to be said that by being a participant in the crypto-space, you are prone to various threats. Among that list are the potential of investing in scams and also the risk of losing your assets to an organized hack.

    In most cases, if your decision-making process is conducted through logic and rationalization then you probably have nothing to worry about. But even the smartest people can be trapped by the allure of quick profits with some sort of irrational belief that they can exit before all hits the ground. This type of trading with the expectation that you can always find an irrational buyer to pay a higher price for an asset that has no intrinsic value is a part of the greater fool’s theory. Trading like that was ever so evident with the notorious Bitconnect. Even with the majority of players in the industry proclaiming that Bitconnect was an obvious scam, so many people still decided to invest in and trade the Bitconnect token. This is where the whole “guaranteed returns” comes in that fools many people.

    With an exploding ICO market, you are going to witness more of these scams. Unfortunately, the scams that have launched degrade the whole ICO space exponentially — partly due to our society’s addiction to virality. There are ways that you can protect yourself from investing in these projects by simply doing some due diligence. A simple checklist when going through an emerging project’s whitepaper is essential. This checklist includes the team, the product, token economics, and the overall market comparatives.

    When looking into a certain project’s team, you need to be very detailed in how far you dive into each team member. Make sure that they have the appropriate accounts (LinkedIn, Twitter, Github etc.) and that they actually make a point of communicating with their community. You must also check into their group chats such as Telegram and ask questions. When you ask something, time their responses. If they are active in their own community helping people understand the product and portray transparency, then you understand that they are dedicated to the cause. Also, make sure that they have consistency with their answers. If you ask a question and get different answers from team members, this is a sign that the team is not all on the same page.

    If it isn’t obvious enough, the product is the single most important aspect of any emerging technology firm. If the company doesn’t already have a working MVP prior to an ICO, this should be a red flag. It is amazing how many of these companies will scam investors into the idea that they will build something in the future once they get the appropriate funding. They often build a team, which they claim is a “dream team” that can build anything and everything. This is one of the biggest ways to scam individuals — and has been for the longest time! If a prospective project does not have a working model, stay away.

    Token economics can be a complicated subject, but there is one aspect that you need to focus on which will determine project confidence — that is the discount structure. ICOs are now creating pre-sale and public sale mechanisms to try and induce an increased level of investment due to perceived incentives. Usually, in pre-sales, investors are incentivized to contribute large sums of money for a specific discount on tokens. If the ICO is allowing 50–80% discount, what kind of confidence do they actually have with their product (that is to say if they even have one)? If you bought a large number of tokens at that kind of discount, you have all the incentives to liquidate your investments right as the token becomes exchangeable. Along with these gross discounts, you need to pay close attention to how the company will allocate their tokens. It is especially critical to look at what percentage of tokens they give their advisors. If the company has a lot of advisors and giving them all 2% allocation there is something wrong. Don’t get me wrong, advisors are an important part of a young company — but they are not worth more than the team members (although they will often convince you otherwise).

    Lastly, you need to do your market research to determine how much a certain industry really needs disruption and decentralization. This usually is best to be done by talking to traditional companies in the market and get to know the ins and outs of how that market operates. It is important to note that not every industry needs decentralization — many are more efficient and effective in a centralized structure. This is not a zero-sum game.

    Those are the main categories in which one needs to be vigilant when trying to separate the scams from the true projects. Maintaining a checklist on all the projects that you are interested in, in a simple yet critical way for you to stop yourself making wrong decisions.

    Scams are one big threat, but another is security. This leads us to a discussion about wallets. There is a plethora of wallets you can use, each with unique characteristics conducive to a variety of use cases. Before we get into the different types of wallets, we need to discuss the mechanisms that make these instruments functional on a consumer level.

    The function of a wallet is exactly what the name entails. Wallets are a place for you to store your crypto, away from the exchanges. It acts as your own personal bank account. It is usually recommended that you remove your cryptocurrencies off of the many exchanges as they are HUGE targets for hackers (a lot of money at stake). If you have ever heard about the MT. GOX scandal — you will understand why ($473 million USD of Bitcoin stolen in one heist according to one article by cointelegraph). Essentially, exchanges will store your crypto online in a centralized manner. This makes them incredibly vulnerable!

    A wallet works based on the issuance of the private and public keys. A private key is your personal key/signature and is something you need to protect with your life. A public key is mathematically derived from your private key. The public key cannot be reverse engineered to figure out your private key. Essentially the public key is a way for your private key to be authenticated, and your private key is used to sign off a transaction.

    There are two main wallet types, Hot and Cold. Both have different use cases and are attractive to different users. Let us begin.

    First off, the hot wallet. Hot wallets are “online” meaning your information is running on the company’s servers. As you probably already guessed, there are security issues with these types of wallets. Generally, most of these online options are secure, especially if you do some due diligence on which products you choose to hold your crypto in. The issue with being online is that regardless of how secure people say they are, they still have an increased probability to be hacked.

    Hot wallets allow users to easily access their funds for scenarios such as day trading, daily transaction, etc. A word of caution; in the unlikely scenario where your hot wallet is hacked I would advise that you minimize the amount of value you actually have in this type of wallet. Make sure you find a value that you are comfortable with potentially losing in the event of a hack. This value will obviously be different for each individual user, but make sure you consider all the trade-offs in making this decision (opportunity cost).

    The two main forms of hot wallets are desktop and mobile. Now both of these versions are intended to be easily accessible, such as when you are day trading on desktop exchanges. Both desktop and mobile interfaces have different security flaws associated with them. Desktops are prone to a variety of viruses that can essentially compromise your wallet and the funds associated with them. Mobile devices are also vulnerable to viruses. My preferences go towards the mobile versions. I find that they are easier to use, and you can easily just scan the QR codes from other wallets, or exchanges to transfer numbers and crypto (this is a lot easier than having to type out the whole code).

    Now we can talk about cold storage wallets. Although this is likely the most expensive option, it is also the safest route you can go. A cold storage wallet allows a user to take all their credentials offline, saving them from security threats associated with hot wallets. You essentially have your private keys stored on a USB-type device that will only work once you plug it into your computer. This is a simple, yet safe way for you to be able to store and access your funds. You will need to purchase these devices, and they can be quite expensive — however the price is worth it, as the device is essentially your ‘safe’ where you are storing your valuables.

    Another form of a cold wallet is a paper wallet. As the name states, this is a wallet that is made out of paper. All the information you need about your accounts will be printed out on a piece of paper. This does give you an extra security feature of being offline. Now, although you do get the offline capability, this is still a wallet that is made out of paper! What happens if you spill coffee on it? Or it accidentally gets recycled, or you end up losing it? I honestly don’t recommend the paper wallet route to anyone. Unless you are a very cautious person, this probably isn’t a viable option. Even the psychology of having all your money stored on a single piece of paper is unnerving. Unlike with paper wallets, typical hardware wallets tend to have back up safety mechanisms that allow you to recoup your digital assets in the event that your wallet is lost, stolen, or broken.

    At the end of the day, you will pick the wallet that suits you best. It is important to take your crypto investing/assets seriously. This is a new market with very early technology. You should always do your own research and ensure that you are protecting yourself in the best way possible. At the end of the day, you are spending your money, and investing into crypto at your own risk.

    Make sure that you do your own research on the projects that you are curious about. Don’t cut any corners, because at the end of the day it is your money that is at risk. Don’t cheap out when it comes to wallets, as this could be a small investment that saves you lots of money in the event of a security attack or disaster.

  • PoW and PoS: Which one is better?
    Jordan Cumming

    Mining has been a contentious topic as of late, especially when discussing the environmental impacts crypto-mining has created. People unfamiliar with this topic are trying to break down what that environmental toll could be coming from. Simply, mining rigs require a lot of electricity. Consequently, as the mining difficulty increases, so does the cost to mine. This is especially true with cryptocurrencies like Bitcoin which uses what is called a Proof of Work (PoW) verification mechanism.

    Proof of Work (PoW)

    Here is a brief description of what Proof of Work is and how it functions. PoW is a protocol that deters certain cyber-attacks like a distributed denial-of-service (DDoS). The attributes that make it attractive with digital currencies like Bitcoin is the trust-less and consensus mechanisms. This means you do not require a centralized, third-party entity to verify a transaction. You can get rid of the banks and allow individuals to have more control over their funds and transactions. Each person running a node has an exact copy of the ledger, distributing the transaction information among a large number of individuals. The ledger is immutable, so nothing can be changed about previous transactions (except a 51% attack as described below).

    When miners verify a transaction in a certain block is valid, they do so by using their respective computing power to optimize the solution. As you can see, as the hash difficulty becomes more complex and random, and as more miners enter thereby increasing competition, it will require more computing power to solve that problem. Consequently, as more computing power is required, so is more energy, all else given. This is why PoW systems have been under a lot of scrutinies as of late. Fortunately, new systems are being created — most famously, Proof of Stake (PoS).

    Proof of Stake (PoS)

    Proof of Stake is a new way to verify transactions while maintaining the decentralized aspects that we all love with blockchain technologies. For PoS to work, you first need to print out all the possible coins for a specific currency. Deterministically, forgers will be chosen based on wealth to create a new block (hence the term stake). A forger, in this case, is the same as a miner. This is very different from the way a PoW system works when a miner needs to leverage his/her processing power to solve complex algorithms. This also eliminates the mining reward — the monetary incentive to become a miner in the first place!

    Current Trends

    At the end of the day, Proof of Work is still a much more dominant system in terms of cryptocurrencies utilizing its functionality. Along with the cost of energy raising for miners in a PoW configuration, there is also a threat called a “51% Attack”. This is when a large hacker decides to take up 51% of the total hash and re-write the ledger. This is an unrealistic attack due to the overwhelming costs associated with it (especially considering how decentralized an ecosystem like Bitcoin is). Proof of Stake doesn’t have this vulnerability, but much is still unknown if other weaknesses exist.

    It is common knowledge that Ethereum will eventually be implementing a PoS system called CASPER. The Ethereum community is fairly divided about this transition primarily due to the lack of mining incentives. Also, the rich get richer in this model. The individuals that have enough investment into the cryptocurrency to be a forger will continuously make more money than those that cannot. Although, this is not too dissimilar to wealthy miners always having a competitive advantage over average miners due to equipment differences.

    In conclusion, Proof of Work isn’t going anywhere anytime soon, but it is a good sign to see new innovative ideas make way in the blockchain community. This is a healthy sign for a maturing industry.

  • 🎉 Coinaki is Officially Live 🎉
    Jordan Cumming

    📰 Headline News

    After several long and grueling months, we’re proud to announce the development of our new Coinaki website is complete.

    We have come a long way from sending out signals via Telegram to now, and we are proud to show off our new, fully operational ICO and blockchain information aggregator.

    Today, we are a community of more than 10,000+ strong, and even though the market has been through both bull and bear runs, you have stuck with us throughout. Thank you.

    🖥 Website Launch

    Now that the website has officially launched, we wanted to highlight a few key features you can utilize on our platform:
    The Coinaki home page is the bulletin board of ICOs we are currently showcasing.

    The ICOs are organized into Upcoming, Active and Ended.  Promoted ICOs are in blue and gold, while if the respective project has a Review badge, quite simply it was reviewed.

    Next we dive right into the essential information we require when exploring what the ICO has to offer.

    As you can see, the top half of the ICO page is all the basic information you need such as the basic token specifics, social links, about sections and video.  As you scroll down the page we get more of the specific information including details about the Team, Financial, Roadmap, and Graphs (Token allocation/Use of Funds).

    With a focus on ICOs and Blockchain specifics, we have our News section focused on original content from community members active in the blockchain industry.

    Lastly, as you already know we are focused on helping out emerging blockchain companies develop real-world products that add value to the growing decentralized ecosystem!

    ❤️ Thanks Again.

    We hope you get a lot of value from Coinaki and our community, and we look forward to chatting with you soon. If you have any questions, concerns or require any ICO services feel free to drop us a line here.

    All the best

    Jordan Cumming,
    Founder & CEO

  • 🌴NOAH PROJECT: the first crypto city and crypto resort🌴(Promotion)
    admin

    🌍 Have you ever visited a real crypto city or enjoyed vacations paying with crypto? With the Noah Project, which successfully finished ICO, these dreams are to be true!

    With its token NOAH, you get access to:

    – high-tech Noah City with crypto accepted everywhere

    – a tropical Noah Resort in the Philippines

    – Noah Wallet (for free on iOS, Android)

    🏙 The Noah City will become a true crypto haven – you’ll be able to spend crypto in shops, hotels, restaurants, getting discounts and privileges for using NOAH. The Noah City, being built in the future largest business district of the Philippines Horizon Manila, will open the gates by 2020-2022.

    🎁 the chic Noah Resort will be located within Dakak Beach Resort and will become a top travel destination for crypto holders. There you could use NOAH in all the parts of the resort and receive various discounts and gifts.

    🔑 NOAH is traded on 6 exchanges: HitBTC, Changelly, Livecoin, Mercatox, Yobit and BTC-Alpha.

    Catch the wave of innovations with Noah Project today! ⚡️

    ⚜️ Talk to us on Telegram 🔥 – https://t.me/noahproject_community

    ⚜️ Check the website – https://noahcoin.org