On-Chain BCH Used in a Submarine Swap for Off-Chain BTC

On-Chain BCH Used in a Submarine Swap for Off-Chain BTC

Technology & Security This week an individual revealed he had completed the first trustless swap by trading on-chain bitcoin cash (BCH) for off-chain bitcoin core (BTC) using Alex Bosworth’s submarine swap protocol. Also read: Illegal Activity No Longer Dominant Use of Bitcoin: DEA Agent On-Chain Bitcoin Cash Submarine Swapped for Off-Chain BTC The decentralized cryptocurrency bitcoin cash (BCH) was traded over the Lightning Network this week for off-chain bitcoin core (BTC). According to an individual on Reddit named u/Darkdeepths, he says he’s been fortunate to see Bosworth’s submarine swap testing and decided to test the protocol himself. The submarine swap protocol is an atomic on-chain and off-chain trading platform created by Bosworth that allows a person to use on-chain funds to pay for an off-chain Lightning invoice. Users can test the protocol with testnet coins and the process was recently used by Jason Wong for an on-chain litecoin (LTC) transaction traded for an off-chain BTC transaction. The Reddit user Darkdeepths decided to utilize bitcoin cash for the experiment two days ago. Darkdeepths BCH for BTC submarine swap. “I’m trustlessly swapping On-Chain BCH for Off-Chain BTC,” explains Darkdeepths. “I am fortunate enough to get a look at some of the cool submarine swap technology that Alex Bosworth is building — I decided I wanted to test turning some of my on-chain BCH to Lightning Network BTC.” I created a Lightning wallet on Moneni.com and generated the Lightning invoice there. Alex already had channel capacity, so all I needed to do was enter the invoice and pay the script that he provided. His service also returned a payload with a redeem script and a block height after which I could claim a refund (in case things went south). Concepts like Plasma and Atomic Swaps have become more popular over the last year. Atomic Swaps and Plasma Trading May Invigorate the Concept of Decentralized Exchanges A few Bitcoin Cash proponents seemed to like the idea that on-chain BCH was swapped trustlessly for off-chain BTC. Darkdeepths experiment was a top post on the bitcoin-cash focused forum r/btc on August 9. Furthermore, Darkdeepths said he may try to reverse the process during his next test.    “It was pretty exciting executing the swap with real assets,” Darkdeepths says.    Thinking of…

IOTA Foundation Undergoes Overhaul After Founders Shut Out of Directors Board

IOTA Foundation Undergoes Overhaul After Founders Shut Out of Directors Board

The IOTA Foundation released a public statement August 8 in order to quell fears of a major disagreement among senior management after a transcript of a discussion between the founders and the Board of Directors was leaked. A statement seen by Cointelegraph explains that following a period of uncertainty over IOTA founders Serguei Popov and Sergey Ivancheglo’s access to the Foundation’s Board of Directors, a Memorandum of Understanding (MoU) would now allow them access. As a German-registered non-profit, the IOTA Foundation needed to act within the law, meaning changing its statute is possible “only by a supervisory board resolution,” the statement says. IOTA’s Supervisory Board had not yet met, despite Popov and Ivancheglo waiting for Board of Directors’ access. The statement notes that the “circumstances lead to a situation, where two of the IOTA founders have been ‘waiting for board seats’ for more than four months,” adding: “Unfortunately, sufficient priority was not given to this open issue, and there was a failure to keep the missing board members informed about progress.” Tensions simmered under the status quo, resulting in Ivancheglo demanding embattled board chairman Dominik Schiener to quit. The statement notes that “Sergey Ivancheglo has since stated that asking for Dominik to resign was an emotional reaction to the situation, which had built up over months. The situation did not feel fair to him, being an integral member of the team behind IOTA as we know it today.” The MoU should be in place by August 10, an interim measure ahead of the Supervisory Board’s first meeting in September, IOTA’s statement writes. Both the Foundation and Schiener have faced criticism over the past year. In April, a scandal broke out after Schiener told an independent security researcher that she “needed a slap. And in May, University College London cut its ties with IOTA altogether, writing that it was “inappropriate for security researchers to be subject to threats of legal action for disclosing their results.”

Facebook’s David Marcus Steps Down From Coinbase’s Board

Facebook’s David Marcus Steps Down From Coinbase’s Board

David Marcus is stepping down from the board of directors at cryptocurrency exchange Coinbase, citing his new assignment at Facebook leading the social media giant’s blockchain strategy. Marcus, a vice president at Facebook since 2014, joined the board at Coinbase, now valued at $8 billion, in December of last year. At the time, CEO Brian Armstrong said Marcus, who was once president of PayPal, would apply his expertise in the “payments and mobile space” to guide Coinbase in its overall mission. Five months later, Marcus was named Facebook’s new blockchain research lead. The company has not released any details about the work it is doing in the field, though Marcus’ team reportedly has fewer than a dozen members. He has notably indicated in past remarks that Facebook may embrace blockchain, specifically referencing the idea of sending cryptocurrency payments through its Messenger app. In a statement provided to CoinDesk Friday, Marcus said his decision to resign was “because of the new group I’m setting up at Facebook around blockchain.” He added: “Getting to know Brian, who’s become a friend, and the whole Coinbase leadership team and board has been an immense privilege. I’ve been thoroughly impressed by the talent and execution the team has demonstrated during my tenure, and I wish the team all the success it deserves going forward.” A Coinbase spokesperson said Marcus’ decision to step down was made to avoid the appearance of a conflict of interest, but declined to elaborate. His departure comes less than a month after Facebook exempted Coinbase from its blanket ban on cryptocurrency-related ads. Armstrong tweeted in July that the exchange’s advertisements would once again appear on the platform, though Facebook did not announce any reversal in its official policy or explain why Coinbase specifically received a carve-out. Coinbase ads now appear on both Facebook and Instagram, which Facebook owns. There are currently no efforts underway to fill Marcus’ board seat, a Coinbase spokesperson said. DFJ Venture Capital’s Barry Schuler, Andreessen Horowitz’s Chris Dixon and Katie Haun, Union Square Ventures’ Fred Wilson, IVP’s Tom Loverro and Coinbase co-founder Fred Ehrsam remain on the exchange’s board. Armstrong said in a statement that Marcus has “been a wonderful addition to the Coinbase board, providing valuable insight and mentorship,” adding: “He remains a close friend of…

Early Crypto Adopter Dish Network Now Accepts Bitcoin Cash

Early Crypto Adopter Dish Network Now Accepts Bitcoin Cash

Dish Network, one of the first major firms to accept bitcoin as method of payment, has announced it now also accepts bitcoin cash. The support for a second cryptocurrency comes a full four years after the U.S.-based subscription TV provider first decided to accept bitcoin in 2014. At the time it was the world’s largest firm to accept bitcoin for its services, boasting 14 million subscribers. Dish customers can now use both cryptocurrencies to pay for monthly subscriptions and pay-per-view movies. According to the release, customers must send the precise amount of bitcoin or bitcoin cash needed to make a one-time payment on either its website or set-top box. “We’ve added bitcoin cash just as we chose to accept bitcoin to serve customers who have adopted a new way of doing business,” said Dish executive vice president and COO John Swieringa in a press release. Alongside the announcement, Dish indicated it has switched its crypto payment processor and will use services provided by BitPay, saying the move will bring a greater degree of “choice and convenience” to users. BitPay is one of the largest cryptocurrency payment providers. It notably raised $40 million in a Series B funding round in April. Discussing the integration with Dish, BitPay CCO Sonny Singh said: “Cryptocurrency is an increasingly popular way for consumers to make purchases online as it reduces credit card fraud and is cheaper for the merchants.” Satellite dish image via Shutterstock The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

The Opposition Towards Bitcoin ABC’s Proposed Upgrade Changes

The Opposition Towards Bitcoin ABC’s Proposed Upgrade Changes

News On August 8, the Bitcoin ABC development team published an announcement regarding the November hard fork changes with plans to finish the latest codebase by August 15. The proposal falls in line with the ABC developer’s upgrade timeline and contains about five different changes that will soon be ready for testing. Also read: Bitcoin Cash Acceptance Grows — Dish Network and Flow Partner With Bitpay Bitcoin ABC Publishes Plans and Consensus Changes for the Upcoming BCH November Upgrade The Bitcoin Cash community has plans to upgrade the network once again with consensus changes this November. Just recently, news.Bitcoin.com reported on Bitcoin ABC developers announcing they will be releasing new code on August 15th for testing. On August 8, the ABC development team revealed the changes they plan to add to the 0.18.0 codebase that includes about five new features. The ABC developers say there’s only one week left before the official code-completion date and they want to remind and update the BCH community with the latest developments. The new changes that have been completed and will undergo testing on August 15 include: Canonical transaction ordering (more info here) Enforcement of minimum transaction size of 100 bytes to prevent attacks on the Merkle tree (more info) Activation code and implementation for OP_CHECKDATASIG and OP_CHECKDATASIGVERIFY (more info) Make push-only mandatory for scriptsig (more info) Another change that is currently still in progress, but expected to be ready by next week, is a modified fee structure which would allow a significant decrease in transaction fees. ABC programmers explain that a modified fee structure is not necessarily a strict consensus change, but nevertheless will be included in the 0.18.0 version. In addition to the announcement, the team also published two specifications for the overall hard fork, and for OP_CHECKDATASIG and OP_CHECKDATASIGVERIFY. Craig Wright: ‘If a Certain Developer Wants This, Then We Will Fund Replacement Developers’ Of course, the announcement from Bitcoin ABC sparked a bunch of controversy due to certain additions within the code changes — most notably the activation of OP_CHECKDATASIGVERIFY (CDSV). Adding the change could allow developers to create binary contracts using the BCH chain, and Bitcoin Unlimited’s lead developer Andrew Stone has been researching and working on implementing the opcode in order to make bitcoin scripting…

Crypto Markets Attempt Recovery, Bitcoin Circles $6,500 Support

Crypto Markets Attempt Recovery, Bitcoin Circles $6,500 Support

August 10: Crypto markets are tentatively holding gains today, as they stake their recovery from the week’s earlier plummet. On August 8, total market capitalization had shrunk to $219 billion –– its lowest level since mid-November 2017 –– but today has seen that figure peak as high as $233 billion. Market visualization from Coin360 Bitcoin (BTC) is attempting to hold the $6,500 support at press time, trading at around $6,485 and up a fraction of a percent on the day. The leading cryptocurrency has seen a 24-hour high around $6,610, but has been trading jaggedly over trading hours, briefly dipping as low as around $6,332, before spiking upwards to re-attempt $6,500. Weekly losses remain at a weighty 13.8 percent, yet on the month Bitcoin is up around two percent. In an interview with CNBC, head of technical research at Renaissance Macro Research Jeff deGraff said that “game‐over” for Bitcoin is on the cards if BTC/USD break year-to-date support levels. Bitcoin’s 24-hour price chart. Source: Cointelegraph Bitcoin Price Index Ethereum (ETH) is currently trading around $360, losing around one percent on the day to press time. The altcoin’s attempt to break through to a higher price point were concentrated during early hours, spiking as high as $369 before dropping back below the $360 mark. The hours just before press time have seen another push upwards, yet these fleeting gains have failed to hold. Ethereum’s losses on its weekly chart are around a stark 13 percent, with monthly losses just under 18 percent. Ethereum’s 24-hour price chart. Source: Cointelegraph Ethereum Price Index On CoinMarketCap’s listings, the top ten crypto assets by market cap are mainly in the red, seeing losses no greater than six percent. The most bullish performance on the day has come from Stellar (XLM), which is up about 3.2 percent to trade around $0.22 at press time. Stellar’s recovery from mid-week losses has been strong, particularly on the XLM/BTC charts. Stellar’s 7-day price chart. Source: CoinMarketCap At the other extreme, IOTA (MIOTA) is down about 6.5 percent to trade around $0.61 at press time. Earlier this week, the alt decoupled from the wider bearish market to claim short-lived growth before seeing its protracted decline. IOTA’s 7-day price chart. Source: CoinMarketCap Among the top twenty…

Regulated Trader Templum Hosts Security Token Sale for Luxury Resort

Regulated Trader Templum Hosts Security Token Sale for Luxury Resort

Token trading platform Templum Markets has launched a sale of a security token on behalf of a popular Colorado resort. Accredited investors can now indirectly own shares in the St. Regis Aspen Resort by purchasing so-called “Aspen coins” through the regulated broker, the company announced Wednesday. Aspen coins represent shares in the resort through a holding company, according to a press release. In other words, each token is backed by the resort itself, though it is actually owned by a holding company and operated by asset management firm Elevated Returns. Templum will accept U.S. dollars, bitcoin and ethereum in exchange for the tokens during the sale. Vince Molinari, Templum CEO, told CoinDesk that accredited investors can access a private placement sale for the Aspen coins by signing up through the startup’s platform. “Each token grants investors the economic interest equal to one common share of the Aspen Digital, Inc. single asset REIT, inclusive of voting rights and the REIT’s income distributions, he said.” Elevated Returns founder and president Stephane De Baets said in a statement that the coins represent a “transformative way to invest in real estate,” as well as a unique way of storing wealth. He added: “We believe that the real estate tokenization model has tremendous potential in that it brings liquidity and disintermediation to the world’s largest asset class.” St. Regis Resort sign image via Shutterstock The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Public Firm Becomes First to Launch an ICO in Singapore

Public Firm Becomes First to Launch an ICO in Singapore

An e-commerce platform that recently launched a token sale aimed to raise $50 million has become Singapore’s first public firm to hold an ICO. Y Ventures Group, which went public on the Stock Exchange of Singapore last year, announced a plan for creating a blockchain-based e-commerce system in July and sent the sale of its AORA token live at the end of the same month. According to the firm, the tokens do not represent ownership of equity in the firm and, as such, should not be regarded as securities – a move perhaps aimed to sidestep concerns from market regulators. Notably, the Monetary Authority of Singapore – the country’s de facto central bank – halted one token sale in March as it deemed the tokens securities since, in that case, they did represent equity ownership. Y Ventures may be the first, but it is not the only public firm in the city state looking to venture into the ICO space. Public entertainment company Spackman also said in February that it aims to issue a cryptocurrency called K Coin in an effort to raise funds for its celebrity business. It has not yet made any announcement about a formal launch, however. Aside from directly conducting token sales themselves, some public firms in Singapore are also acquiring or managing projects that deal with ICOs as another route into the cryptocurrency space. In May, for example, real-estate developer Pacific Star Development signed an agreement with a startup called Crowdvilla in May to become its exclusive asset manager. Crowdvilla is now seeking to raise $18 million through an ICO to build a group of shared holiday homes. Taking another route, MC Payment, a blockchain payments firm, acquired a lifestyle startup that raised $2.4 million through an ICO in 2017, and is now setting out to go public via the purchase of an already listed Singaporean firm called Artivision. While Singapore currently has guidelines for ICOs, but no hard and fast rules, a spokesperson for the stock exchange said in a local news report on Friday that public companies must periodically report on their ICO status to ensure stock investors are properly informed. Singapore image via Shutterstock The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a…

Apocalyptic Predictions About Privacy Coins Are Very Wide of the Mark

Apocalyptic Predictions About Privacy Coins Are Very Wide of the Mark

Op-Ed Bitcoin is a permissionless ledger. In plain English, that means you don’t need to ask anyone’s damn permission to use it. There are no terms and conditions to read, no checkbox to tick, and no forms to sign before you can send or receive bitcoin. But if some people had their way, pseudonymous cryptocurrencies, as well as anonymous coins like monero, would only be used with the government’s permission. These people are wrong. So wrong it hurts. Also read: Illegal Activity No Longer Dominant Use of Bitcoin: DEA Agent Bad Advice is Easy to Come By Ever since bitcoin became officially cool, sometime last year, all its previous haters and ignorers have come out of the woodwork, offering to share their insights. Every day, the editorial inbox at news.Bitcoin.com fills with pitches from bankers, regulators, and financiers eager to dispense soundbites on this new asset class called cryptocurrency – the very same one that we could swear we’ve been covering for years. There’s no shame in being late to crypto; cool points are not awarded for the number of years you’ve been using bitcoin. But it does stick in the craw when johnny-come-latelies try to position themselves as cryptocurrency experts and insist on telling the rest of us what to do with them. One such newcomer is Weiss, an agency founded in 1971 that has since gone on to rate more than 55,000 institutions and investments. It’s new to cryptocurrency though – 2018 new – and it shows. We originally reported on its nonsensical crypto ratings back in January, when it awarded BTC a “C+” – i.e mediocre. It then supplemented this with a review of 93 cryptocurrencies in May, in which BTC scored a “B-”. The agency’s latest pronouncement, on privacy coins, which it urges the public to avoid, might be its most misinformed yet. It’s hard to tell whether Weiss Ratings actually believes the advice it dispenses or is simply shooting for rage clicks. If its strategy is the latter, it’s succeeding; if it’s the former, it should go back to reviewing legacy financial institutions, cos Weiss is hopelessly out of its depth when it comes to crypto. How You Spend Your Privacy Coins is No One Else’s Business A new report by…

India: Government to Consider Allowing Crypto Tokens, But Not Cryptocurrencies

India: Government to Consider Allowing Crypto Tokens, But Not Cryptocurrencies

The Indian government is considering whether to allow crypto tokens to be used in the country, despite its hardline stance on cryptocurrencies, local news outlet DNA India reports August 10. A committee set up by the finance ministry, under the chairmanship of the Department of Economic Affairs (DEA) secretary, is reportedly working on a set of regulations and roadmap to allow certain crypto assets to be used in India. Once the draft proposals are finalized, the legislation will be tabled before the Parliament, according to DNA’s source. DEA secretary Subhash Chandra Garg, who is heading the committee, is quoted by DNA as saying: “The committee is studying the possibility of using cryptocurrencies or crypto technology (distributed ledger technology) for financial transactions and also what kind of regulations are needed for that…[while] the currency is totally banned, the committee is discussing its other usage and how it can be mainstreamed in India.” While emphasizing that DLT technology — of which blockchain is one type — offers “a lot of promise,” Garg reportedly “categorically denied” the future use of cryptocurrencies themselves “in any manner,” including in payment systems. Garg said that the DEA has issued “several advisories” to the public warning people of the risks of cryptocurrencies, which are considered to be “a Ponzi kind of scheme” and not “currencies at all.” Meanwhile, the Reserve Bank of India (RBI) has issued a ban on banks’ dealings with crypto-related businesses and persons, which came into effect July 5. Garg said, however, that he believes the government may “test the waters” when it comes to allowing for crypto tokenization, which — if introduced — would not be able to serve as a substitute for fiat currencies: “One will need to pay physical money to buy a token which could be stored as a code in any basic mobile feature phone. It can even be used for remittances. So, it is easy to implement from technology as well as regulatory point of view. But in case of cryptocurrency, one needs to allow it as a legal tender first.” As part of its efforts, the committee will reportedly include an analysis of what it considers would be the prospects and consequences of the government legalizing cryptocurrencies. Ongoing hearings on RBI’s controversial…