Litecoin Foundation’s Xinxi Wang says Proof-of-Stake has no visible advantage over Proof-of-Work

Xinxi Wang, the Director of the Litecoin Foundation and CEO of Coinnut exchange, in a recent interview, opined that Proof-of Stake [PoS] protocol had no advantage over Proof-of-Work [PoW]. At a time when a significant portion of the crypto community is in conflict over Bitcoin [BTC] mining’s massive energy consumption, Wang stated:
“People criticized that PoW consumes energy. But that energy was used for good, i.e., security.”
Staking enables the users who already possess substantial stakes in a particular cryptocurrency in the network to earn more rewards. Criticizing the PoS protocol, Wang asserted that the rich get richer, and said:
“.. if a group of people controls more than 51%, no one can break that control, while for PoW, you can invest more hash power to break the control.”
Wang also spoke about the Financial Underground Kingdom during the interview. Wang, who also happens to be a skilled coder, said that between the two Proof-of-Work [PoW] implemented platforms – Bitcoin and Litecoin, he chose Litecoin [LTC] because of its efficient confirmation time and cost-effective features.
However, he did acknowledge Bitcoin’s security features, its use for large transfers, and the network’s decent storage value, stating that both the leading crypto assets had ‘unique niche markets’.
Xinxi Wang also spoke about Litecoin’s upcoming implementation of MimbleWimble and CT to address fungibility issues. Wang called it better than Monero’s ring signature-based Confidential Transaction feature, suggesting that the latter caused scalability issues. MimbleWimble on the other hand, he said, did not have such an issue as it was essentially “CT + CoinShuffle”.
Wang’s affirmation of MimbleWimble comes a few weeks after the creator of Litecoin, Charlie Lee was all praises for the protocol on an episode of Magical Crypto Friends. He said:
“I think MimbleWimble technology is actually pretty cool. So when I first learned about it, seems like a good way to get both privacy and scaling and privacy that doesn’t make scaling hard or much worse which is very cool. So I’m yeah happy to see where where this technology goes”
When asked about the much-awaited Litecoin [LTC] halving, Xinxi Wang commented:
“Check 2015. Perhaps this year can be even better than in 2015 because of lightning network and the coming privacy features.”
The post Litecoin Foundation’s Xinxi Wang says Proof-of-Stake has no visible advantage over Proof-of-Work appeared first on AMBCrypto.
Source: AMB Crypto

Ethereum Consensus Shift Could Delay Any Derivatives Products

The biggest thing on the launch pad this year is the Bakkt crypto exchange which is currently in a holding pattern while US government employees twiddle their thumbs during Trump’s shutdown. Several other contenders are hopeful about Ethereum futures but according to one crypto exchange boss they are unlikely to be seen soon.
Regulatory Concerns Mounting
According to Paul Chou, chief executive officer of LedgerX, odds of an Ethereum derivative product launching in 2019 are 50-50 at best. The company is one of several which already have Ethereum options ready to trade. But just like Bakkt it is currently in the queue waiting for the CFTC to wake up from the prolonged government shutdown.
According to The Block regulators still don’t really understand Ethereum and are waiting for a ‘request for input’ which solicits information from market participants; “The RFI seeks to understand similarities and distinctions between certain virtual currencies, including here ether and bitcoin, as well as ether-specific opportunities, challenges, and risks,”
In addition to LedgerX are ErisX and Seed CX which also have Ethereum based derivatives on offer. CBoE Global Markets, which was one of the first to get Bitcoin futures off the ground in late 2017, also has an Ethereum product but is doubtful that regulatory approval will come soon.
Former fintech adviser to the CFTC, Jeff Bandman, said “They understand what a proof of work network is like because that’s how bitcoin works, but proof of stake raises new questions. Specifically, what are the risks?” He added that once the agency has gained more knowledge on the product it could start to deliberate in the first half of 2019 … providing the government shutdown comes to an end.
The Casper update will usher in proof of stake for Ethereum and change the landscape entirely, at least in the eyes of the CFTC. The delayed Constantinople update which was due yesterday is a preliminary step for a shift from PoW to PoS for the network. Crypto attorney Nelson Rosario told The Block;
“There is a lot of uncertainty, regulators see this and they think ‘what exactly are we giving you permission to sell a futures product on’,” with one industry insider adding “Staking mimics a derivative product. If you are holding ether as a stake than you are essentially betting it will go up and if you are not you are effectively betting it will go down, at worst, or at best you don’t want it sitting on the network. If you have a future on top of that then you are adding a level of complexity that developers have not worked through,”
The shift in consensus for Ethereum has been heralded as the biggest progression for the network but from a regulatory perspective it could be another big headache.
Image from Shutterstock
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Source: New feedNewsBTC.com

Not All Blockchains are Born Equal: Finding the Right Consensus Algorithm

CoinSpeaker

Not All Blockchains are Born Equal: Finding the Right Consensus Algorithm

Dmytro Spilka, CEO at Solvid and founder of Pridicto, AI and Machine Learning expert shares his professional insights into the key backbone of blockchain technology – Consensus Algorithm.

Not All Blockchains are Born Equal: Finding the Right Consensus Algorithm

Continue reading at Coinspeaker
Source: CoinSpeaker

BitPay Implements First Major PoS Solution in Canada

A Canadian luxury fine jewelry brand is now accepting Bitcoin as a means of payment at eight stores across the country. Birks Group partnered with BitPay to process all Bitcoin transactions made by customers.
Canadian Luxury Jewelry Brand Partners With BitPay to Accept Bitcoin
Leading the luxury jewelry retail sector in Canada since 1879, Birks Group is now at the forefront of the digital revolution by adding bitcoin as a payment option for customers of the brand. Transactions made through BitPay’s processing system are faster and easier than legacy fiat systems, said Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group.
“It is of great significance to Birks Group to launch BitPay. As an internationally growing brand, we believe that BitPay will benefit our customers as we look to align ourselves with these innovative capabilities that are on the forefront of technology.”
BitPay is a market leader in bringing brick and mortar merchants ahead of the curve and closer to the future. Founded in 2011 in Atlanta, the global bitcoin payment service will provide Birks Group with a full array of options for accepting blockchain payments, from direct point-of-sale integrations to web and mobile-based apps, said Sonny Singh, Chief Commercial Officer of BitPay.
“Birks Group has a large number of international shoppers so allowing them to pay in bitcoin makes perfect sense. Accepting bitcoin helps Birks Group to cater to their high-end international clients and get new customers while providing an innovative and safe payment option.”
The jewelry retailer will accept bitcoin payments in 8 select stores, making it the first major implementation of BitPay’s point-of-sale solution in Canada. Bitcoin payments allow for large transactions, which has attracted the world of luxury brands. Amsterdam-based high-end jeweler Ace Jewelers Group partnered with BitPay back in 2016, becoming Europe’s first jeweler to accept Bitcoin.
The luxury real estate business has also adhered to bitcoin payments. An example of this is the acquisition of a Miami home for 455 BTC, worth 6 million dollars at the time, earlier in 2018. The purchase was the most expensive Bitcoin to Bitcoin real estate transaction to date.
BitPay’s Sonny Singh has recently told Bloomberg’s Emily Chang that Bitcoin may surge towards the $15,000-$20,000 area over the next year on the back of institutionals and the their blockchain-powered products to be launched in 2019. Singh singled out Fidelity, Bakkt, Square, and Blackrock, as potential drivers of the next Bitcoin bullish run.
The Bitcoin payments giant has offices in North America, Europe, and South America and has raised over $70 million from leading investors. The firm, however, has recently faced a potentially alarming threat in the form of malicious code. The malware was deployed on versions 5.0.2 through 5.1.0 of its Copay and BitPay apps.
BitPay is investigating whether Copay users suffered from any attack purported the malicious code. In the meantime, the firm recommended users to move funds to new wallets immediately as private keys could be compromised.
 
Image from Shutterstock
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Vitalik Buterin speaks about Ethereum [ETH] 2.0 Proof Of Stake [POS] protocol

On October 31, Ethereum co-founder Vitalik Buterin spoke about the Ethereum 2.0 upgrade and the basic idea behind the new platform. Vitalik stated that he did not want to explain the new upgrade from a technical point of view, but started off by explaining what was in the Ethereum 2.0 upgrade.
Vitalik stated:
“It is a combination of a bunch of different features that we have been talking about for the past several years. We have been actively researching, building, and now, finally getting them all together.”
He spoke about Casper, the Proof Of Stake [POS] protocol that the platform will be using for the Ethereum 2.0 upgrade. An entire team dedicated towards creating Casper and Vlad Zamfir is often credited as being the “Face of Casper”.
He spoke about sharding from the scalability perspective; sharding is how Ethereum will realize the performance gains necessary to scale. Vitalik further stated that improvements were made in the Virtual Machine with Ethereum favored WebAssembly [EWASM], which is a restricted subset of WASM to be used for contracts in Ethereum.
Vitalik stated that the road to Proof of Stake started in 2014, when he posted an article on a blog post in January. The post described an algorithm called Slasher, which was introduced as a basic concept in the Proof of Stake algorithms.
He added that the idea behind Slasher is that if an individual is caught doing something wrong, then it can be proven and the individual can be penalized for the crime. According to Vitalik, this was a way to increase security. He added:
“Slasher is a useful construct to have in our war chest, in case Proof of Stake mining becomes substantially more popular or a compelling reason to switch.”
According to Vitalik, they did not use Slasher because in 2014, they were not clear whether POS was the protocol they wanted to implement in the future. He further stated:
“But as we know, now, over time, that has changed quite a lot. “
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Source: AMB Crypto