Does the combination of Cryptocurrencies plus Blockchain represent a new era of energy grid management?

Colleagues, Walmart’s new patent entitled “Managing Demand on an Electrical Grid Using a Publicly Distributed Transaction Ledger” may be the next move toward national and region energy grids running on Blockchain technology. In this approach energy producers and consumers would conduct transactions using cryptocurrencies. Under this patent the total amount of cryptocurrency available to purchase units of energy from an energy provider. Micro grids comprised of local residential or commercial entities could use a Blockchain distributed ledger to build a network of energy-consuming devices. Each device would be allocated a set amount of Bitcoin or another cryptocurrency used to purchase energy from the utility provider over a set billing period. When an individual network uses less than its allocated energy consumption, it can be structured to share it with another network. In 2018 LO3 an energy trade startup began testing this with the Brooklyn Micro grid pilot program. And Australia-based startup Power Ledger is building a platform that allows users to buy and sell solar electricity in real time. Bottom line: Could Blockchain enabled micro grids using cryptocurrencies as their method of payment represent a viable method for solving the dilemma of failed energy systems? Share a comment and visit us today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Will Hashbyte usher in a profitable era of cloud-based crypto mining?

Colleagues, cryptocurrency mining has faced the enormous challenges of high energy and hardware costs and along with low returns for miners. And while cloud-based solutions have definite benefits they are also common targets of cyber criminals. HashByte’s infrastructure uses 250W solar panels which power their mining facilities along with lease contracts with private wind turbine firms across Europe. Bottom line: Will Hashbyte’s renewable energy approach to crypto mining enable them to effectively complete against the likes of Genesis Mining Enigma, Bitfury Mines, Bitmain, Giga Watt and Hut 8 Mining? Post a comment and subscribe today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Is there a Central Bank Digital Currency in the US Federal Reserve’s future?

Colleagues, central banks of developed and developing nations around the world are assessing the viability of launching their own cryptocurrencies (CBDC). Central banks are notoriously conservative and adverse to systemic change. The US Fed is no different. Despite former US FDIC Chair’s Sheila Bair advocacy that the central bank should at least ‘consider’ issuing as US CBCD, Fed Chair Jerome Powell and Governor Lael Brainard have raised major concerns. Issues such as money-laundering, security of distributed ledgers, investor protection and in many cases the pure “speculative” nature of the crypto world order are all red flags from the US Fed’s perspective. Simultaneously the relentless growth in the number and value of cryptocurrencies worldwide continue at a breakneck pace. We at the Cryptocurrency Academy fully understand and respect the US Fed’s well-founded reluctance to introduce unproven competition to its fiat currency. Our prediction is that in 3-5 years we anticipate the US Fed’s posture toward a US CBDC will be much more favorable. Bottom line: For central banks – at home and abroad – CBDCs will simply become an idea whose time has come. Leave a comment and subscribe today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Coinrail Reports a $40m Heist – So just how secure are cryptocurrency exchanges against cyber theft?

Colleagues, the recent Coinrail loss of some $40m is just the latest in a steady stream of cybercrime attacks against cryptocurrency exchanges. Coincheck lost an approximately $400m earlier this year, last November saw Tether claim it lose $31 million following an attack. Mt. Gox hacking in 2014 is the mother of all crypto attacks. In total the exchange lost around 744,408 BTC. That was worth around $350m in 2014.  While Coinrail is by no means a tier 1 exchange this cyber heist raises serious questions about the security of cryptocurrencies in general, and second the exchanges on which they are traded. There is no silver bullet mitigation strategy, however, the Cryptocurrency Academy would a couple of best practices for minimizing the risk to your crypto investments: Currencies, exchanges and wallets. First, the top-tier currencies such as BTC, Ethereum, Ripple, Litecoin, etc. generally have more security on-board. Second, the larger and more established exchanges are likely to be built on more secure platforms with cyber security professionals on staff. And third, although opinions surely vary, hardware wallet such as the industry-leading Nano Ledger S are believed to offer more security … especially when compared to cloud-based wallets. Send us a comment and subscribe today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

SEC Chair Jay Clayton wrestles with whether cryptocurrencies are in fact securities

Colleagues, is Bitcoin a security? The answer you receive likely will depend upon to whom you ask the question. As of June 2018 Jay Clayton does not consider Bitcoin as a security according to the 1933 Securities Act. To paraphrase his rationale may be a little risky, nonetheless, we will do our best. Clayton’s definition of a security is when an investor provides funds to a designated third party and expects to receive – with some level of risk – a return on his or her investment. Traditional IPO stocks most definitely meet his definition of a security. Enter the emerging universe of ICOs. Now the definition become much more blurry. All indications are that Clayton’s view is that ICOs border on pure “speculation” regarding the investors’ expectation of a return. So which firms and/or products do meet the definition of a security? Surely any public company which produces a digital or tangible product related to the cryptocurrency or the broader Blockchain ecosystem are securities. So where does this leave ICOs and the currencies they represent? The Cryptocurrency Academy perceives a rather large black hole … at least for the foreseeable future. This phenomenon is not uncommon when the rate of technology innovation outpaces the government’s due diligence to define and enforce regulations. We predict that this issue will be resolved, but not for another 2-3 years leaving ICOs and potential investors hanging in the balance. Share a comment and subscribe today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

How to mitigate the increased threat of cryptocurrency theft?

Colleagues, currency theft is nothing new. However, with the meteoric rise in cryptocurrency trading in the past 2-3 years the opportunity for cyber thieves and risk to investor has never been greater. Cloud security firm Carbon Black has issued a new threat report entitled “Cryptocurrency Gold Rush on the Dark Web“ in which it claims some $1.1b USD in cryptocurrencies have been illicitly stolen so far this calendar year. Moreover, Japanese cryptocurrency exchange Coincheck had $600m in XEM stolen by hackers in January 2018. A number which is likely to grow dramatically over time. The malware needed to commit cryptocurrency theft can be obtained for a mere $224. Two key questions emerge: First, which components of the cryptocurrency ecosystem are vulnerable to attack – mining, wallets, exchanges, etc? And second, which mitigation strategies can the ecosystem in general and investors in particular, take to reduce risk? For the moment, concrete answers to these question appear illusive. Nonetheless, the Cryptocurrency Academy will pursue these issues and keep you informed. Please share a comment and subscribe today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)

Beyond Stratum - What impact will the BetterHash protocol have on cryptocurrency mining?

Colleagues, Matt Corallo from Bitcoin Core goal is to replace the existing Stratum mining protocol with a new system which divides payouts and block construction – Pool and Work. The stratum overlay protocol was extended to support pooled mining as a replacement for obsolete getwork protocol in late 2012. The mining service specification was initially announced via Slush's pool's website^.  Shortly thereafter, alternative "cheat sheet" style documentation was provided by BTCGuild. Bottom line question: Can a new protocol such as BetterHash deliver both decentralization and scalability in crypto mining? Share a comment and subscribe today! Lawrence, Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com)