Slush Pool and Ballet Crypto to Release Physical Blocks to Create Virgin Bitcoins
The Slush Pool mining pool, in collaboration with Ballet Crypto, will release the blocks it mined in physical media as virgin bitcoins.
According to Slush Pool, users will be able to buy blocks in Ballet Crypto to become owners of a "physical piece of Bitcoin's history." Unlike cash, bitcoins have their own history. For example, when bitcoin is used on illegal platforms like Silk Road, the reputation of such coins deteriorates.
The idea behind the project is that regulated investment funds will strive for strict compliance with the provisions of the law on money laundering. In addition, regulated cryptocurrency exchanges will stop accepting coins that have been used in financial crimes or other activities that violate the law. Users and fund managers will not be able to conduct transactions with "black" or "gray" coins.
By "black" coins is meant cryptocurrency, traces of which lead to addresses on the darknet or addresses that are in black lists. When entering regulated exchanges, such coins receive a special label, and the user can become a defendant in a legal proceeding. Black coins are difficult to convert to fiat currency. Gray coins are not directly linked to blacklisted addresses, but their history cannot be fully traced. Such coins can be mixed through services that increase the privacy of transactions.
White coins can be fully traced back to the moment they are issued. These coins have not been used for illegal purposes or have been purchased from a KYC / AML exchange. "Virgin" coins are those that, from the moment they were mined, have remained with one holder and have never been moved. "White" and "virgin" coins have much more value in the market, and for miners this is a great opportunity to increase their profits.
Unlike over-the-counter cryptocurrency (OTC) platforms, Ballet Crypto is not aimed at institutional investors. On the contrary, it is intended for ordinary bitcoin holders who will have “clean” coins and become the owners of a unique collector's item that embodies bitcoin as digital gold.
According to the creators of the project, for security purposes, two-factor key generation is used, in which it is encrypted with the BIP38 passphrase. This phrase and the private key are generated off-chain and added to each block separately from each other. For example, a wallet is created and added to a block in China and then encrypted with a passphrase in the United States.
Ballet Crypto sends the physical block to the buyer before coins are mined in it. After the buyer confirms that the block has been received and that it is "safe", Ballet Crypto notifies Braiins that the block has been mined, and the collectible is ready. Considering that such blocks are “made to order”, users can purchase a block before halving with a reward for its creation of 12.5 BTC.
Calibra Developers Introduce New BFT Test Method
The developers of the Calibra wallet for Facebook's Libra project have created a BFT consensus testing method called Twins.
In document
the creators of the testing method emphasize that it allows you to quickly and easily test BFT algorithms. The solution uses the launch of two identical nodes to emulate the behavior of the algorithm, including "ambiguity, double voting, and loss of internal state."
"The Twins method allows an operator to systematically generate attacks on BFT protocols, scale them, execute them completely under control, and check the necessary parameters of the algorithm," the document says.
The developers have already used the Twins method to recreate known attacks on BFT algorithms. Two vulnerabilities that “took the community more than a decade to find in BFT algorithms” were identified using Twins' method “in minutes”.
The Byzantine Generals' Tasks Principle was formed in 1982. Algorithms solve the problem of interaction between remote subscribers in case some of them are unreliable. In the blockchain, BFT is used to maintain the integrity and reliability of data and the network in the event of various attacks.
“One of the best things about my job is the opportunity to collaborate with some of the brightest and most talented people in the industry. Here's some cutting-edge research on BFT algorithm testing from our team, "Calibra co-founder David Marcus wrote on Twitter.
At the same time, the authors of the method noted that using Twins it is impossible to recreate absolutely all possible behaviors of BFT algorithms, which should be taken into account.
Research: demand for bitcoin in Argentina increased due to fear of default
The analytical company Arcane Research reports that recently on the LocalBitcoins platform, the purchase of bitcoins for Argentine pesos has been in demand in connection with a possible default in the country.
Bitcoin demand in Argentina has grown by 1,028% since January 2018, and the growth has been exponential, according to Arcane Research analysts on Twitter. In addition, the volume of Bitcoin trading with the US dollar in Argentina grew by 139%.
Argentina on Wednesday failed to pay off another $ 500 million in interest on government bonds bought by private investors, triggering a 30-day report to pay off the debt.
If the country is unable to pay the funds, then this will lead to a formal default. Against this background, private investors who are afraid of default and inflation of the national currency are trying to transfer assets into other forms, including bitcoin.
To stabilize the economy, the Argentine authorities may take measures that will lead to deflation of the peso. Alex Mashinsky, CEO of Celsius Network, spoke about this the other day when he said that "if you buy bitcoin, then you bet on deflation of world currencies."
Bloomberg predicts a powerful new rally in Bitcoin
Bloomberg, one of the world's largest mainstream publications, has presented its own report on the state of affairs in the bitcoin ecosystem, according to which everything suggests that the first cryptocurrency will face a bullish rally in the style of 2017.
According to the authors, the collapse in stock markets will temporarily affect Bitcoin as well. The end result, however, will be more reminiscent of what happened to gold after the 2008 financial crisis.
Born in 2009, the cryptocurrency, although considered a high-risk and volatile asset, is performing well this year when compared to other market instruments such as the S&P 500.
In 2020, as the world is gripped by the COVID-19 crisis and governments are printing huge amounts of paper money to support the economy, Bitcoin will face a key test in the process of becoming a quasi-currency like gold. And with this test, the researchers believe, he will successfully cope.
“Bitcoin and gold will benefit more than anyone else from the unprecedented monetary stimulus, accompanied by a fall in the stock markets,” the report said.
The emergence of Bitcoin futures tamed the 2017 bull rally. However, the rise in open positions, declining volatility and the comparative outpacing dynamics that can be observed against the background of falling stock markets indicate that Bitcoin is entering a stage of maturity and is increasingly becoming a digital version of gold rather than an asset for speculation.
The authors expect bitcoin volatility to decline, and this is an extremely important observation: it was the historically lowest level of volatility that was recorded in October 2015 that marked the beginning of a bullish rally, which culminated with the price of the cryptocurrency reaching historic highs in December 2017.
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