Category Archives: Blockchain, Crypto, Digital Assets, Tokens

How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Forbes | Christopher Helman | May 21, 2020

texas turbines - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinIt’s everyone’s dream to get paid to do nothing. Bitcoin miner Layer1 is turning that dream into reality — having figured out how to make money even when its machines are turned off. 

Layer1 is a cryptocurrency startup backed by the likes of billionaire Peter Thiel. In recent months, out in the hardscrabble land of west Texas, the company has been busy erecting steel boxes (think shipping containers) stuffed chockablock with high-end processors submerged inside cooling baths of mineral oil. Why west Texas? Beause thanks to a glut of natural gas and a forest of wind turbines, power there is among the cheapest in the world — which is what you need for crypto.

See:  Bitcoin’s “halvening” is upon us

“Mining Bitcoin is about converting electricity into money,” says Alex Liegl, CEO and co-founder. By this fall Layer1 will have dozens of these boxes churning around the clock to transform 100 megawatts into a stream of Bitcoin. Liegl says their average cost of production is about $1,000 per coin — equating to a 90% profit margin at current BTC price of $9,100.

So it’s odd how excited Liegl is about the prospect of having to shut down his Bitcoin miners this summer.

Already this year west Texas has seen a string of 100-degree days. But the real heat and humidity don’t hit until August, which is when the Texas power grid strains under the load of every air conditioning unit in the state going full blast. During an intense week in 2019, wholesale electricity prices in the grid region managed by the Electricity Reliability Council of Texas (ERCOT) soared from about $120 per megawatthour to peak out at $9,000 per mwh. It was only the third time in history that Texas power hit that level. And although the peak pricing only lasted an hour or so, that’s enough to generate big profits. Analyst Hugh Wynne at research outfit SSR figures that Texas power generators make about 15% of annual revenues during the peak 1% of hours (whereas in more temperate California grid generators only get 3% of revs from the top 1%).

Turns out that running a phalanx of Bitcoin miners is a great way to arbitrage those peaks. Layer1 has entered into so-called “demand response” contracts whereby at a minute’s notice they will shut down all their machines and instead allow their 100 mw load to flow onto the grid.

“We act as an insurance underwriter for the energy grid,” says Liegl, 27.

“If there is an insufficiency of supply we can shut down.” The best part, they get paid whether a grid emergeny occurs or not. Just for their willingness to shut in Bitcoin production, Layer1 collects an annual premium equating to $19 per megawatthour of their expected power demand — or about $17 million. Given Layer1’s roughly $25 per mwh long-term contracted costs, this gets their all-in power price down 75% to less than 1 cent per kwh (just 10% of what residential customers pay).

See:  UNICEF Australia’s ‘The Hopepage’ Uses Crypto Mining To Raise Money For Children

It may seem like grid operators are paying Layer1 a lot for something that might not even happen, especially with coronavirus reducing electricity demand, but it makes total sense, says Ed Hirs, a lecturer in energy economics at the University of Houston and research fellow at consultancy BDO: “It’s a lot cheaper option than building a whole new power plant or battery system just to keep it on standby.”

And although this may be a new concept for cryptocurrency miners, it’s been done before. “It used to be called load management,” says Dan Delurey, a consultant with Wedgemere Group.

Two decades ago industrialist Charles Hurwitz bought up power-hogging aluminum smelters in the Pacific Northwest and made more money reselling electricity than making metal.

Continue to the full article here --> here

 


NCFA Jan 2018 resize - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinFF Logo 400 v3 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoincommunity social impact - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin
NCFA COVID 19 letter to government to support Fintechs and SMEs - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Coronavirus resources 800 1 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

NCFA Newsletter subscribe600 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

FFCON20 Homepage Banner v3 updated - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

 

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Introducing Plaid Exchange

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Plaid blog | Niko Karvounis & Jesse Dhillon  | May 20, 2020

Plaid exchange - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Plaid Exchange

The financial ecosystem is undergoing an unprecedented digital transformation due to new realities brought on by COVID-19. Consumers and businesses have turned to fintech to manage their finances in record numbers. Digital transformation that was expected to take years is now predicted to take place over a matter of months. Now, financial institutions everywhere must be prepared to meet their customers’ rising demand for digital connectivity.

See:  With Plaid Acquisition, Visa Makes a Big Play for the ‘Plumbing’ That Connects the Fintech World

Today, Plaid is launching Plaid Exchange to accelerate consumer-permissioned data access strategies for financial institutions. As fintech adoption has grown, so have the needs of financial institutions that must now manage unprecedented customer connections across thousands of fintech apps. Plaid Exchange gives financial institutions, from banks to wealth management firms, an open finance platform that includes critical tools required to manage the secure and reliable data connectivity their customers’ financial lives demand, today and for years to come. At the heart of this platform is the ability for consumers to maintain control and transparency into where and how their financial information is permissioned and shared, increasingly important as more people rely on a variety of digital financial tools to manage their financial lives.

Over the past year, we communicated with over a hundred financial institutions to understand their evolving priorities and deliver a solution that fully encompasses what a financial institution needs to implement scalable API-led data access rooted in user transparency and control. With Plaid Exchange, financial institutions can bring an API solution to market in as little as 12 weeks. Implementing Plaid Exchange also means saving on the costs associated with standing up an API, such as building tools and programs to manage developer testing, implementation, and risk management.

Developed with shared security, transparency and reliability needs across the ecosystem in mind, Plaid Exchange is an API platform for financial institutions that provides the connectivity to:open finance x - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

See:  Microsoft And Plaid Should Target Small Businesses (Not Consumers) With Money In Excel

  • Establish token-based API connectivity. Financial institutions can leverage tokenization to maintain connectivity, and help ensure even more reliable integrations with the 2,600+ apps on the Plaid network today.
  • Optimize infrastructure load. With a bi-directional Plaid Exchange integration, financial institutions benefit from smarter scheduling and load management for data updates.
  • Build one integration for open finance needs. Plaid Exchange is a solution for the digital financial ecosystem stakeholders; it’s open finance in a box, so financial institutions can integrate with multiple data partners through the Plaid Exchange integration.
  • Align with key connectivity standards and principles in the industry. As an active member of FDX and multiple industry standards bodies, we’ve designed Plaid Exchange to reflect key principles around access, consumer control, transparency, and security.
  • Enable new control tools for consumers. Plaid Exchange includes the ability for financial institutions to easily build a consumer control center that gives their customers more visibility and enhanced control over how their financial information is shared and where their accounts are connected.

Continue to the full article --> here

 


NCFA Jan 2018 resize - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinFF Logo 400 v3 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoincommunity social impact - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin
NCFA COVID 19 letter to government to support Fintechs and SMEs - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Coronavirus resources 800 1 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

NCFA Newsletter subscribe600 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

FFCON20 Homepage Banner v3 updated - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

 

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Quantum Computers Challenge Blockchain’s Invincibility: What To Do Now

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Forbes | Susan Galer | May 19, 2020

blockchain security - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinTimelines for the emergence of quantum computers may be fuzzy, but the threat they pose to the vaunted security of blockchain technology is profoundly real. Originally popular as fail-safe security for bitcoin enthusiasts, blockchain is making inroads across numerous industries, most notably as a track and trace tool proving the provenance of goods across vast supply chains. Blockchain-based security may be even more valuable in managing supply and demand shocks during the pandemic and after. However, as blockchain services grow and quantum computers begin to emerge, now is the time to start thinking about quantum-resistant blockchain.

“Once quantum computers can break the cryptography being used today, blockchain loses its immutability,” said Cedric Hebert, senior researcher at SAP Security Research.

“We wouldn’t be able to trust new transactions on a blockchain that wasn’t meant to resist quantum-fueled attacks. Companies will need to adopt new protocols to resist quantum attacks.”

See:  The research frontier: where next for AI and collective intelligence?

Right now, it’s difficult to go backwards on a blockchain’s immutable ledger and change original information in each block of the chain. This is especially the case as blocks are added with more data. People can’t easily rewrite history on its immutable ledger because other nodes on the chain would automatically reject any changes. Also, traditional blockchains are based on asymmetric cryptography, which prevents fraudulent signing. Unfortunately quantum computers could theoretically break the immutability of any block in the chain and falsify historical transactions.

“Companies can use blockchain technology if they incorporate quantum-resistant encryption protocols,” said Hebert. “You would need to freeze the blockchain at some point and migrate transactions to the new protocol. ”

Prepare now for post-quantum security

Even if a fraction of the predictions about blockchain come true, the security stakes are high for consumers and businesses. Blockchain made Gartner IT’s list of top 10 strategic technology trends for 2020, predicted to infiltrate everything from processing insurance claims, loans, and recalls, to identity management for students, patients, and citizens. By 2022, IDC analysts said 10 percent of the world's adult population will register for a blockchain-based self-sovereign ID, creating an expanding market of 485 million people who want to own and control their digital identity. Whether it’s verifying transactions for bitcoin mining or tracking food from farm to table, blockchain’s security horizon depends on the unique situation.

“Companies need to factor in the lifespan of their blockchains,” said Andrey Hoursanov, lead of quantum security at SAP. “If you’re using it to trace shipments from raw materials sourcing to delivery, maybe you’re looking at months, not years. In contrast, bitcoin investments typically take longer. That’s where you need to seriously consider how to protect the blockchain against quantum attacks likelier to happen further in the future.”

Re-securing cryptocurrency

Cryptocurrency isn’t necessarily just for consumers trading bitcoins. IDC analysts predicted that over 12 countries, mostly emerging economies, will begin issuing a digital currency using blockchain technologies to promote economic stability and encourage electronic commerce by 2023. As some governments begin using cryptocurrencies, Hoursanov said companies will need to begin looking at post-quantum blockchain technology for business-to-business (B2B) transactions such as procurement that involves collaboration between buyers and suppliers.

See:  Accenture: Fintech, Cybersecurity and Methods to Handle Threat

Cross-border payments are another potential security risk. For example, IDC researchers predicted that 85 percent of global container shipping will be tracked by blockchain, with half of this volume using blockchain-enabled cross-border payments in just three years. They said that 40 percent of tier one financial institutions will use blockchain networks to process point-to-point cross-border payments, bypassing SWIFT and the correspondent or central banking infrastructure by 2024.

Continue to the full article --> here

 


NCFA Jan 2018 resize - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinFF Logo 400 v3 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoincommunity social impact - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin
NCFA COVID 19 letter to government to support Fintechs and SMEs - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Coronavirus resources 800 1 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

NCFA Newsletter subscribe600 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

FFCON20 Homepage Banner v3 updated - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

 

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Full Court WordPress: Coil Deal Boosts Functional Blockchain — And XRP

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Forbes | Cory Johnson | May 19, 2020

XRP wordpress - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinXRP-powered Coil could put crypto transactions into the hands of tens of millions with WordPress deal. But will it take?

The excitement over how much blockchain could do has always been outmatched by what little blockchain does do. But that may finally be changing.

Today, the San Francisco-based blockchain startup Coil announced a new integration with WordPress, the dominant publishing engine on the Web. It means that website creators could get blockchain-metered payments, whether the content is free or behind a paywall.

Better still, users, currently accustomed to giving up their private information to unknown cookies, will have that personal information protected. They could even enjoy WordPress-powered sites advertising free.

See:  How the Pandemic Is Pushing Blockchain Forward

This is a big deal because, well, WordPress is big. According to an W3techs survey in April, over a third of the Web is published using WordPress software. Among those sites using content management systems, WordPress has 63.3% market share — number two Joomla has just 4.1%. WordPress version 5.4 has been downloaded 27 million times and counting. So yeah — it’s a huge opportunity.

Coil’s technology notes when a user visits a Coil-enabled site and apportions a payment to that site, paid out in cash or crypto currency — specifically in XRP.

That this could be the biggest use of XRP outside of the global payments company Ripple is no coincidence. Coil’s founder and CEO, Stefan Thomas, was Ripple’s chief technology officer until mid-2018  — Ripple being the biggest user of XRP to this point. Coil was backed by Ripple in 2018, which participated in a reported $4 million dollar seed round and then, in September 2019, tossed in a massive investment of one billion XRP tokens (and to be clear, I’m hopelessly conflicted reporting this story as I once worked at Ripple. To be equally clear, as of this writing I don’t own any XRP.)

To facilitate paying website owners, Coil is also announcing a new crypto wallet partnership with San Francisco-based Uphold, which boasts of trading in sixty currencies and having deals with banks in thirty-five countries

“Publishers and individual creators are seeking new revenue streams,” Thomas said in a release. “At the same time, consumers are suffering from site-by-site subscription fatigue and the invasive privacy issues associated with ads. With the introduction of the Web Monetization plugin and more payout options for publishers and creators around the globe, our goal is to provide more choice and less friction for everyone.”

That might be the goal, but one more payment option is surely more friction, at least at the start. And to be sure, this isn’t a deal with every site using WordPress. Indeed, it doesn’t appear to be a deal with any site using WordPress. This is more of a hunting licence, allowing Coil to try to convince content creators to hitch their wagon to Coil, if not XRP.

See:  Visa’s digital dollar concept opens a door to central bank currencies

“I’m all for writers getting paid,” says Lou Kerner, longtime analyst and founder of Crypto Mondays. “Is this a good use case for blockchain? Sure. The problem is the revenues generated from this are de minimis. Not many people, at the end of the day, care about privacy. Facebook and Google remain the winners.”

Continue to the full article --> here

 


NCFA Jan 2018 resize - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinFF Logo 400 v3 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoincommunity social impact - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin
NCFA COVID 19 letter to government to support Fintechs and SMEs - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Coronavirus resources 800 1 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

NCFA Newsletter subscribe600 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

FFCON20 Homepage Banner v3 updated - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

 

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Visa’s digital dollar concept opens a door to central bank currencies

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

American Banker | John Adams | May 18, 2020

CBDC in 2020 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinThe coronavirus recovery is accelerating government involvement in payments, providing Visa a chance to turn a developing currency concept into a route for federal transactions.

The U.S. Patent office on Friday published a Visa patent application to create a technology gateway that could allow central bank currencies for any nation to be digitized. Visa filed the application in November, predating the coronavirus crisis that has generated more interest in digital money.

The application details a centralized computing system that receives information and denomination of a traditional currency, which is then converted to a digital form and recorded on a distributed ledger. This could work with any traditional currency, placing Visa in the middle of the process.

See:  Visa’s Fast Track Program Propels Growth of the Fintech Industry Worldwide

The coronavirus recovery is accelerating government involvement in payments, providing Visa a chance to turn a developing currency concept into a route for federal transactions.

The U.S. Patent office on Friday published a Visa patent application to create a technology gateway that could allow central bank currencies for any nation to be digitized. Visa filed the application in November, predating the coronavirus crisis that has generated more interest in digital money.

The application details a centralized computing system that receives information and denomination of a traditional currency, which is then converted to a digital form and recorded on a distributed ledger. This could work with any traditional currency, placing Visa in the middle of the process.

It’s also a way for Visa to respond to changes in money movement that could potentially compete with the card network. Visa was initially part of Facebook’s Libra project, but left the initiative along with several other high-profile payment companies when regulators and politicians pressured Libra — mostly over Facebook’s role and the potential to circumvent government monetary policy.

“Widespread adoption of digital currencies would be bad for Visa’s traditional retail payments franchise,” said Eric Grover, a principal at Intrepid Ventures, adding this may be a case of Visa hedging against central bank or Libra-style digital currencies. “A digital currency supported by Visa and issued by banks could fit nicely with Visa’s business model of delivering payment products through license banks, albeit with thinner transaction economics.”

The European Union has considered a “digital euro” to spur coronavirus recovery, and dozens of other countries are working on similar projects, giving Visa plenty of opportunities to partner with governments.

See:  Cryptocurrency Payments Processor CoinPayments Appoints Jason Butcher as New CEO

In this way Visa’s patent, which does not propose a cryptocurrency, is also a nod toward working with governments that may be anxious about how blockchain and cryptocurrency could impact traditional monetary policy, particularly in a time of quantitative easing and potential effects on currency values.

Continue to the full article --> here

 


Blockonomi | | May 18 ,2020

visa digital currency patent - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinExploring Visa’s Digital Currency Patent Application: Toward a New Era of Finance?

The U.S. Patent and Trademark Office (USPTO) published the patent application in question, which is simply titled "DIGITAL FIAT CURRENCY."

Visa is one of the most successful and consequential payments companies in the world. Where the powerhouse enterprise places its efforts is thus no small matter.

That’s why a newly published patent application for a blockchain-powered “digital fiat currency” system by the payments giant is not only legitimizing for blockchain tech in general but also indicates what may be coming to the mainstream payments arena amid increasing hyperdigitalization.

See:

Indeed, Visa’s patent mentioned the reigning smart contract platform Ethereum and the Hyperledger Fabric blockchain nearly a dozen times each. Will the future of finance be built on top public blockchains, then?

That’s the grand question for now, and Visa’s new patent application is an interesting new wrinkle accordingly. To be sure, Visa may have simply kept its options open with a defensive application. Yet if the firm ever does proceed with a system like the one planned in the filing, the implications will be manifold and major. Let’s dive deeper to better understand the stakes.

How the Digital Currency Would Work

Per the application, Visa’s envisioned digital currency entails a central operator, i.e. Visa or beyond, facilitating token issuances atop a blockchain. To this end, the document repeatedly identifies Ethereum as potential infrastructure of choice.

On the Decentralization Spectrum

Public blockchains like Ethereum can be used in many ways. They can give rise to totally decentralized projects like Augur and Uniswap, or they can help power centralized third-party enterprises like the Tether (USDT) stablecoin operation.

See:   Could Bitcoin on DeFi displace banks? Yes

Obviously then, Visa’s digital currency system — at least as initially outlined — would be near the “completely centralized” end of the decentralization spectrum. With that said, though, what would be interesting to see is if and how Visa’s digital currency would permeate into more decentralized areas of the cryptoeconomy, e.g. like USDT trading on Uniswap.

Visa could employ a smart contract whitelisting system to mitigate its tokens running amok in DeFi, though the company wouldn’t necessarily have to.

News Comes as Stablecoins Are Booming

There’s no indication just yet that Visa’s digital currency will actually come to fruition. But the mere prospect of its arrival comes at a time when both centralized and decentralized fiat-pegged stablecoins have been becoming increasingly popular.

For instance, this month the combined market capitalization of all active stablecoins reached $10 billion USD for the first time ever. The new milestone shows that demand for fiat-pegged or value-stable tokens is already strong and on the rise.

If a major firm like Visa jumped into the rising sector in a big way, then stablecoins in general will have officially hit the prime time. The possibility is closer than ever.

The CBDC Specter

As outlined, Visa’s envisioned digital currency system leaves the door open for central banking institutions to work with the payments company on actualizing central bank digital currency (CBDC) issuances.

See:  China’s digital currency app looks like Alipay and WeChat Pay

What’s interesting here is that in Visa central banks would certainly find a reliable and promising partner. In many cases, these banks would naturally be more comfortable using an Ethereum-powered Visa system rather than building their own Ethereum solutions themselves.

As such, Visa would be ideal for central banks wanting to issue CBDCs for retail rather than wholesale use, as the company’s consumer base is vast.

Continue to the full article --> here

 


NCFA Jan 2018 resize - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinFF Logo 400 v3 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoincommunity social impact - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin
NCFA COVID 19 letter to government to support Fintechs and SMEs - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Coronavirus resources 800 1 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

NCFA Newsletter subscribe600 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

FFCON20 Homepage Banner v3 updated - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

 

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Bitcoin’s “halvening” is upon us

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

FT Alphaville | Jemima Kelly | May 11, 2020

bitcoin halvening  - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinToday’s the day that bitcoiners the world over have been waiting for. It’s the day – which only comes around every four years – that the supply of new bitcoins is cut in half. It’s the halvening! (OK yes, some bitcoiners just call it “the halving”, but we prefer the former because we feel it’s a nice illustration of the way much of Cryptoland doesn’t make a lot of sense.)

This halvening, like all other such halvenings, was actually programmed into the bitcoin protocol when it was invented over a decade ago, as a way of giving the cryptocurrency some scarcity. It was quite a nifty idea to give something that only exists as a string of 1s and 0s scarcity; other decentralised digital currencies before bitcoin suffered from the lack of this.

See:  Podcast: When Currencies Fail: A Primer on the Dollar Crisis in Lebanon

(The problem, however, is that it turns out that there is no scarcity in the number of copycat cryptocurrencies, which undermines the idea of scarcity in bitcoin.)

Some time in the first half of the 22nd century, bitcoin’s supply will reach 21 million (it is currently just over 18 million). Until then, its supply will keep increasing, but the rate at which it does so will halve every four years. And this evening, at around 20.11 GMT, the number of new bitcoins being added to the system roughly every ten minutes will fall to 6.25, from the current rate of 12.5.

The reason this is so exciting to bitcoin bros (and gals, though there are far fewer of those) is that this event is seen as a “surefire way” for number to go up (ie, for the price to increase). That’s because, according to the logic, if demand remains the same, the “age-old phenomenon of supply and demand” will kick in.

As we’ve pointed out before, however, the supply is still actually increasing, just at a slower rate. The halvening, therefore, can be thought of as a kind of “tapering”, but not a reduction in supply. Tomorrow, there will still be more bitcoins in circulation than today. So we see no reason that the halvening should boost bitcoin’s price.

One bold bitcoin bro analyst at Germany’s state-owned Bayern LB bank even predicted last year that, based on bitcoin’s “stock-to-flow ratio”, the halvening would boost bitcoin to $90,000. John McAfee, meanwhile, is due to consume one of his bodily extremities if the price doesn’t hit a cool $1m by the end of the year. Yum.

See:  How To Navigate Regulation Crowdfunding With Crypto And Blockchain

The price at pixel, however, is firmly stuck just below $8,500, according to crypto site Coindesk – around the levels it’s been at since the start of May (it did recover in April after crashing to below $4,000 during the heavy March coronavirus-led sell-off across markets).

continue to the full article --> here

 


NCFA Jan 2018 resize - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinFF Logo 400 v3 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoincommunity social impact - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin
NCFA COVID 19 letter to government to support Fintechs and SMEs - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Coronavirus resources 800 1 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

NCFA Newsletter subscribe600 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

FFCON20 Homepage Banner v3 updated - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

 

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

How To Navigate Regulation Crowdfunding With Crypto And Blockchain

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Forbes | Jason Brett | May 10, 2020

Ms Dickinson - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinDawn Dickson is the founder and CEO of PopCom, a company she has been working on since 2012 that is an automated retail technology company with a hardware and software (SaaS) solution for self-service retail. Essentially, PopCom makes vending machines and kiosks smarter by allowing retailers to collect important analytics at the point of sale and deliver targeted content, similar to how Google analytics analyzes web traffic.

With her business involving automated retail technology and self-service machines, the COVID-19 pandemic has resulted in increased demand for her company’s products, making her investor pitch that much easier. Dickson is the first Black woman to raise over $1 Million under SEC Regulation Crowdfunding (Reg CF) using a security token offering (STO). Currently in the middle of her second Reg CF, PopCom has raised $800,000 in about a month and a half.

‘The Jobs Act by Obama leveled the playing field and access to capital for businesses and allows leverage community from accredited and non-accredited investors,’ Dickson explains.

For early stage deals where a company is not yet publicly traded, she notes, ‘...an accredited investor needs to make $200,000 as an individual or $300,000 if you are married, and have $1,000,000 in net worth’.

Dickson notes these investors are the ‘...same people over and over again who are benefitting from the success of these early-stage companies where the wealth is circulated around the same group of accredited investors.’

Dickson explains she educated herself about how to do a crowdfunding campaign, as has been made possible by President Obama with the Jobs Act. She realized she had families, friends, and a community of supporters that were not accredited investors, but were educated investors with disposable income and understood the risks and rewards of an early-stage investment in a company.

See: 

SEC Gives Break on Crowdfunding Rules for Some Small Firms

How Regulation Crowdfunding Stood up to the First Weeks of Coronavirus – Almost Opposite of the Public Markets

That campaign, Dickson states, was the, ‘…First time people had really seen on a mass level a black person [who] does something like this,...[as I was the] first black female founder, first female founder to raise million dollars in a crowdfunding campaign,’ Dickson proudly proclaims. Her first crowdfunding campaign was oversubscribed, with $1.3 million, and now, she is at $800,000, closing in on the $1,070,000 limit for this campaign.

This time, her crowdfunding campaign provides equity in the company in the form of stock certificates and is not a token sale. While the last round was a token offering, Dickson comments the SEC does not fully support token offerings. ‘They act like they are okay with crypto and blockchain but their actions show the opposite,’ states Dickson. In that the benefit would be selling the tokenized shares for liquidity on a secondary trading platform, until the SEC decides to approve this, there is no real benefit to having a ‘crypto’ security token offering anyway. A token is a digital version of a share instead of a paper share; the primary benefit of using a token for funding is so you can sell the token for liquidity.

Continue to the full article --> here

 


NCFA Jan 2018 resize - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine BitcoinFF Logo 400 v3 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoincommunity social impact - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin
NCFA COVID 19 letter to government to support Fintechs and SMEs - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

Coronavirus resources 800 1 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

NCFA Newsletter subscribe600 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

FFCON20 Homepage Banner v3 updated - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin

 

share save 171 16 - How This Billionaire-Backed Crypto Startup Gets Paid To Not Mine Bitcoin