Will the identification and prosecution of Japan’s Zaif hackers deter future crypto exchange cybercrime?

Colleagues, last month we reported on the $60m crypto heist carried out against Japan’s Zaif exchange. Japan Digital Design has apparently identified crypto transaction clues, which they believe will lead them to the hackers of some $60m. This is good news – any developments to help reduce crypto cybercrime only strengthen the common good of the global cryptosphere. However, Zaif with its roughly $7.4m trading volume according to CoinMarketCap is at best a third tier crypto exchange and the theft of $60m is a mere blip within the $212T global cryptocurrency arena. This leads us to the obvious question: Will the capture and prosecution of the Zaif hackers have a deterrent effect on other cyber-attacks against crypto exchanges around the globe? Answer: Highly unlikely. The dramatic growth in digital asset growth during the past year have made exchanges a “top priority” target for cyber criminals. We stand by our previous guidance. Professional traders and investors should stay with tier 1 exchanges such as Biance, Huobi, OKEx, etc.  – despite their own pitfalls – which tend to offer more stringent security measures.  Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Can Atomic Swap Technology Ensure the Security of the M-DEX Crypto Custody Mobile Exchange?

Colleagues, atomic swaps (aka atomic cross-chain trading) is the exchange of one cryptocurrency to another cryptocurrency without the need for a trusted a third-party. Sovereign Wallet intends to release M-DEX I January 2019 which is a custody-free mobile exchange enabled by the MUI trading bot. Eliminating the trusted third party has the allure of faster and lower cost cryptocurrency transactions. In turn, the MUI Token is purportedly backed by the Algorithm central bank. However, the fundamental question arises: How secure will M-DEX transactions be without the involvement of a third party custodian? Security is tantamount to the integrity and success of the global crypto ecosystem for individual traders and institutional investors alike. We believe M-DEX offers great benefits, yet also comes with notable risk. Proceed with caution until M-DEX is fully tested in a real-world environment.

Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

How will BTC.com and AntPool’s actions impact SegWit transactions?

Colleagues, a titanic battle of cryptocurrency miners is forcing the issue a crucial Blockchain hardfork vs. softfork. In the hardfork camp, Bitmain affiliates BTC.com and AntPool. Meanwhile, the Bitcoin Core camp is defending a softfork. Caught in the middle is SegWit (“Segregated Witnesses”). Apparently, BTC.com and AntPool are refusing to confirm SegWit block transactions. Bitmain favors increasing the limit of block size. A brief history lesson in Blockchain programming shows that hardforks – if not fully supported by the crypto ecosystem – can lead to divisions of the broader crypto community. Such is the case of the 2017 hardfork, which led to the split of Bitcoin into Bitcoin and Bitcoin Cash. This issue is playing out in real-time and the Cryptocurrency Academy will provide an update once details are confirmed. Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Investors Take Note – Intercontinental Exchange Will List its First Bitcoin Futures Contract in December

Colleagues, the advent of the ICE Bakkt physically settled daily Bitcoin futures contract would bring cryptocurrencies to the mainstream for institutional investors. The NYSE’s parent company, ICE, decided that a futures contract rather than a security was the most efficient route to market given the Commodity Futures Trading Commission’s “self-certification” process when compared to the US SEC’s stringent process for approving ETFs.  Each futures contract will be valued at one (1) Bitcoin – currently trading at $6319.09 USD held in the Bakkt Digital Asset Warehouse. While most investor attention has been focused on have cryptocurrencies categorized as “securities” (under the auspices of the US SEC), the ICE Bakkt futures scenario opens-up a new vehicle for the trade of digital assets. We anticipate similar moves by the US CBOE and its counterparts in Europe and Asia over the next 12 months. Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Monumental Challenge with Universal Benefits – OEM Apps on Mobile Devices or Embed Crypto Tools into Browsers

Colleagues, the Cryptocurrency Academy has written extensively about the need for digital assets to cross the chasm from early adopter to mass-market adoption. We see several financial management firms launch crypto trading and custody services for institutional clients. We would like to offer two potential approaches, which could dramatically accelerate individual trader transactions and dollar value. One strategy is to OEM a crypto trading app onto all smartphones, tablets and laptops – a simple pre-install placing the app on the ‘home’ screen alongside email, weather, search and IM. Second, a much more challenging approach would be to embed a crypto trading API pre-installed in Chrome, Firefox, IE and Safari. This is precisely what the World Wide Web Consortium (W3C) is considering with regard to Bitcoin’s Lightning Network. Bitcoin averages some 275k transactions and $3.7B+ in market value per day (CoinMarketCap). The implementation of either or both of the above techniques could help Bitcoin, Altcoin and Stablecoins truly reach escape velocity. We predict implementation led by W3C along with tier 1 browser and device vendors for industry-leading BTC within 24 months. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Can Blockchain deliver security, performance and dependability for Japan’s new Payment Clearing Network?

Colleagues, Blockchain technology is about to meet once of its biggest challenges to date – the Japanese Banks' Payment Clearing Network consortium. The critical success factors include performance, security and dependability when processing of low-cost transfer of small-scale transactions using RTGS.for nine commercial banks. Fujitsu has been selected to develop the new Blockchain-based system. If this test proves successful, it will clearly distinguish Japan as a “first mover” when it comes to the industrial use of Blockchain technology among the world’s leading economies. One advantage here is the fact that all the players are Japanese owned and operated entities and may benefit from both technological and well as cultural synergies. China, South Korea and the US will closely monitor this stress test as they seek to implement comparable systems. Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Does Blockchain’s DLT hold the key to Central Bank Digital Currency Adoption?

Colleagues, we have written extensively on the propensity of central sovereign banks to issue their own cryptocurrencies. The US Federal Reserve and the PBoC appear to be on opposite ends of the adoption continuum. New research published by the OMFIF (Official Monetary and Financial Institutions Forum) and IBM point us to the Occam’s razor of CBCD adoption: Distributed Ledger Technology (DLT). Download the CBDC report here. Private sector ICOs continue to rise with no end in sight. While they understand that their underlying Blockchain technology likely has bugs and security vulnerabilities, financial institutions in particular – such as JP Morgan, Fidelity, BlackRock, etc. – clearly see the benefits of trans-border remittances, increased transaction speed and lower OPEX. In aggregate central bankers have major reservations on the security and dependability of DLT. The report states that the goal is to “construct a convincing RTGS replacement that can be properly benchmarked against existing systems and meet the high standards for security, robustness, efficiency and speed.” The PBOC is hiring staff to develop its CBDC as we speak, whereas the US Fed is cautiously assessing its options. Many other central banks are somewhere in between. Our prediction: By 2023, most G20 nations will have launched their own CBDC. Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)