Initial Exchange Offerings (IEOs): The Next Disruptive Force in the Crypto Space?

Initial Exchange Offerings (IEOs): The Next Disruptive Force in the Crypto Space?
In this post, by blockchain expert and professional tech researcher Gregory S Mathew, you’ll find what Initial Exchange Offering (IEO) is, how it differs from ICO and why this new fundraising model is widely considered to be crypto industry’s next disrupter.
Initial Exchange Offerings (IEOs): The Next Disruptive Force in the Crypto Space?

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Source: CoinSpeaker

Bitcoin Transaction Volume Plummets By 30%, What’s Causing the Drop?

According to, the recent fall in Bitcoin’s transaction count has coincided with the end of VeriBlock’s testnet phase. Reports indicate the little-known startup is responsible for a significant number of BTC transactions. This raises concerns over its use of the Bitcoin network.

The recent collapse in BTC transaction count seems to correlate with the end of the Veriblock testnet (on March 4th) which was accounting for 20-30% of BTC transactions
— (@coinmetrics) March 11, 2019

Is VeriBlock Responsible For Falling Bitcoin Transactions?
According to VeriBlock’s self-published figures, during the active testnet phase, they were responsible for between 25-45% of Bitcoin’s transaction count. Since testing ended on the 4th March, Bitcoin’s daily transaction count has fallen by 21%, leading many to draw parallels.

VeriBlock uses Bitcoin OP_RETURN transactions to bring additional security benefits. But as a relative newcomer to the scene, its long-term viability is uncertain. According to their website, they aim to secure alternative blockchains and improve Bitcoin scalability by:
“securing a diverse ecosystem of blockchains, with each specializing in solving particular problems, [this] encourages widespread adoption of these blockchains, causing an exodus of transactions from Bitcoin to these more specialized blockchains, while still driving value back to Bitcoin.”
By selling the advantages of their Proof-of-Proof model, VeriBlock hopes to attract blockchain customers. This is especially pertinent given the recent attack on Ethereum Classic – which demonstrated that even notable projects could fall foul to scammers.
The team behind VeriBlock claim that any blockchain can utilize the inherent safety of the Bitcoin network. Furthermore, by incorporating their systems, consensus attacks are much harder to execute. Likewise, additional benefits come by way of:

Increased trust
Reduced confirmation times
Potential to participate in fiat markets
Subverting consensus related token theft

All of which raises the question of whether inflation of Bitcoin’s network traffic can be rightly justified?
The central feature of VeriBlock is its Proof-of-Proof consensus model. They describe it as:
“a novel consensus protocol which allows any blockchain (including sidechains and permissioned ledgers) to inherit the full security of Bitcoin in a truly decentralized, trustless, transparent, and permissionless (DTTP) manner.”
While piggybacking off the Bitcoin network is nothing new, for example in the case of merge mining, critics raise concerns over VeriBlock “spamming” the network. They go on to say that data storage on the Bitcoin network was intended only for financial transactions, and not to record arbitrary data. On the other hand, BTC is a permissionless network. Moreover, the use of block space should be allowed if miners benefit.

Veriblock is probably garbage, but I must say I welcome increased demand for limited BTC block space.
— Stephen (@sthenc) February 8, 2019

All in all, VeriBlock’s influence on the top cryptocurrency shows that BTC can be more than a store of value. On top of which, by considering the more critical metric of trading volume, which indicates an upward trend for BTC, increasing from $8.3b to $9.6b between 4th March and 12th March, it would be fair to say that criticisms of VeriBlock piggybacking off the Bitcoin network hold little substance.
The post Bitcoin Transaction Volume Plummets By 30%, What’s Causing the Drop? appeared first on NewsBTC.
Source: New

Bitcoin [BTC] volume drop could be linked with end of VeriBlock testnet

Bitcoin [BTC], the world’s largest cryptocurrency has not had a tremendous start to the beginning of March, as indicated by the transaction numbers and the volatile market volume.
The latest report from Coin Metrics shows a stark decline in the Bitcoin transaction rate as the numbers fell from a high of 353,537 transactions to the current 239,345 transactions. The downtrend is the biggest slip of transaction rate over the past three months as the disparity between the top and the bottom came up to almost 114,000 transactions.
Many users speculated that the drop could be linked to the end of the Veriblock testnet that occurred on March 4. Reports also showed that the testnet process accounted for almost 20%-30% of occurring Bitcoin transactions. Veriblock’s testnet created a lot of ruckus in the cryptocurrency space, with many users complaining about repeated spams and other problems. Veriblock’s website had then said:
“As a result, the reinforced security provided by PoP will encourage further adoption of these alternative blockchains. The transition of transactions from Bitcoin to alternative blockchains will also facilitate Bitcoin scaling, while continuing to drive value back to Bitcoin miners.”
Veriblock’s website shows that the organization aims to provide double-spend attack prevention, protection against sustained 51% attacks, and early attack detection against frauds and thefts.
Users in the cryptocurrency sphere have also pointed to some other reasons for the decline, one standout option being the power and communications outage in Venezuela. Reports from within the country showed that the BTC transaction in Venezuela plunged from 370,000 to 240,000. The reason why the drop in Venezuela made news was that the country’s BTC transactions on LocalBitcoin were more than that of Europe and the United Kingdom.
Bitcoin and its associated technologies had made news earlier when Bitcoin millionaire Erik Finman said that the coin’s Lightning Network will demolish the future. He elucidated that the LN was effectively transforming Bitcoin into an international payment network like Mastercard and Visa. He even stated that ‘Bitcoin is dead’ and that the LN will be the main cause for it.
The post Bitcoin [BTC] volume drop could be linked with end of VeriBlock testnet appeared first on AMBCrypto.
Source: AMB Crypto

VeriBlock ‘Spams’ Bitcoin Network to Secure Blockchains of Other Cryptos


VeriBlock ‘Spams’ Bitcoin Network to Secure Blockchains of Other Cryptos

On October 22, 2013, Bitcoin Core developers merged pull request to accept OP_RETURN as a valid transaction type, providing users with 80 bytes of space for embedding arbitrary data. OP_RETURN enables users to mark transaction outputs as unspendable.

VeriBlock ‘Spams’ Bitcoin Network to Secure Blockchains of Other Cryptos

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Source: CoinSpeaker

Are VeriBlock Transactions on the Bitcoin Network Helping or Harming BTC?

According to reports from Bitcoin (BTC) developers, a startling amount of block space is being wasted on the Bitcoin network to secure the blockchains of other cryptos. A company called VeriBlock has been “borrowing” the hashing power of the Bitcoin network to increase security on vulnerable altcoin chains and filling up BTC block space in the process.
VeriBlock works on a process known of “proof-of-proof” whereby the latter “proof” is arrived at using the hash power of the Bitcoin network. According to Forbes, perhaps the most notable contributor to the VeriBlock project is former Bitcoin Core developer Jeff Garzik.
Only a Matter of Time Before VeriBlock’s Impact on Bitcoin Fees is No Longer Trivial
As was highlighted just this week by the Ethereum Classic (ETC) debacle, the risk of 51% attack on altcoins is far greater than it is on the BTC network. This is because there is much less hashing power securing these smaller networks. With less computing power enforcing them, attackers need to command far less computing power themselves to subvert the network’s rules.
A 51% attack allows those behind it to wreak havoc with a cryptocurrency and enrich themselves. This can involve double spending units of the currency – essentially creating money for nothing for the attacker.
To help altcoins with their failing security requirements, a startup called VeriBlock has devised a way to use Bitcoin’s immense hash power to help secure the blockchains of smaller projects. This involves the use of OP_Return transactions added to the Bitcoin blockchain.
VeriBlock is not even fully live on the main net yet but already it is already having an impact on the Bitcoin network. Chief Technology Officer of CasaHODL and long-time Bitcoin developer Jameson Lopp highlighted a few days ago that the startup was currently responsible for 20% of all transactions on the network:

Source of the now-highest volume of OP_RETURN outputs has been identified as @VeriBlock "proof of proof" miners. They are creating around 20% of all BTC transactions now. Seems inefficient to me; will be interesting to see if the incentives work long term.
— Jameson Lopp (@lopp) January 5, 2019

Whilst there is nothing anyone can do to stop VeriBlock from using the Bitcoin blockchain in such a way, its doing so certainly reduces the utility of the network. With 20% of every block being filled with transactions that support networks that divert both economic and literal human interest away from Bitcoin, VeriBlock could be incredibly detrimental for the success of an entire space, largely tied to the current number one digital asset.
VeriBlock will already be having an undesirable impact on the price of transactions on the network. If a large surge in utility occurs on the network again, there may be another “race to the top” situation within transaction fee markets. Last time this occurred, $40 being spent in Bitcoin fees was not uncommon. Such a fee is difficult to swallow when it is caused directly by economic activity benefiting Bitcoin. When it is caused by a group of altcoins supporting essentially zero economic activity and supposedly in direct competition with Bitcoin, most users would find it grossly unacceptable.
Poaching BTC’s hash rate in the way that VeriBlock is doing and filling blocks with data that benefits dying blockchains only serves to delay the inevitable, whilst limiting Bitcoin’s chances of success.
The massive proliferation of cash-grab altcoins and the continued profitability of scams in the space has made digital currency difficult to take seriously for anyone outside of the industry. Many of these altcoins, particularly those needing support from VeriBlock, need to die off entirely before this can change.
It is hard, after all, to imagine a less noble existence than failing to survive off hash power from miners incentivised to secure the network through mining rewards and instead continuing to exist at the expense of potential Bitcoin adoption whilst continuing to give “get-rich-quick”-type investors hope of an impending moon shoot.
Related Reading: Coinbase Forced to Suspend Ethereum Classic Trading After 51% Attack
Featured Image from Shutterstock.
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Source: New