Advents Podcast: ConsenSys – Corporate Culture in a Global Organism

ConsenSys is one of the largest and most successful blockchain focused start-ups. How does the cooperation in this “organism” work? These and other questions are answered by Jose Caballer and Patrick Degenhardt from ConsenSys.

Bitcoin news: For the Christmas season we provide you with something special:

For every Advent Sunday we publish a special episode of the Bitcoin news Podcast by onlinebetrug in English. ConsenSys was founded by Joseph Lubin, co-founder of Ethereum itself. The Bitcoin news start-up wants to translate the potential of Ethereum into reality. It uses an innovative organizational structure – decentralized, in line with the blockchain itself. The employees, who are spread all over the globe, usually work remotely, so they don’t sit together in the same office. Active communication is therefore particularly important. ConsenSys has an ace up its sleeve for effective team collaboration.

Organizing a decentralized Bitcoin formula

Corporate culture is at the forefront at Bitcoin formula. Here is the review by onlinebetrug. When hierarchy loses importance, the method of decision making and communication must gain in importance. The task of Jose Caballer is to establish this method and to teach it to every single employee of ConsenSys. Jose is the Culture Chef for ConsenSys, but “Chef” does not mean “boss”, but refers to the kitchen. Jose himself believes that true teamwork is particularly evident in cooking. With a pragmatic attitude and many years of experience, he went to work at ConsenSys. The aim was to bring the members of the individual subgroups into line at ConsenSys. So that everyone could pull together in the same direction.

ConsenSys consists of makers. People who are motivated and passionate about starting projects and want to influence the real world. Furthermore, participation is the be-all and end-all in a group. If a group of people comes together, the first task is to think about and formulate a mission. Accordingly, all participants must be involved in this process so that there are no distortions later on. In this way, ConsenSys gathers talent behind a common cause. The success speaks for itself: Within the last 18 months, ConsenSys has grown from 150 employees to over 1,100 employees.

ERC-1400: New token standard for security tokens

With ERC-1400 Adam Dossa, Pablo Ruiz, Fabian Vogelsteller and Stephane Gosselin have created a new token standard. Unlike the well-known ERC-20 or the two standards ERC-723 and ERC-1155, which are related to CryptoKitties and video games respectively, the focus here is on security tokens.

In the concept presented, the authors present a token that is compatible with ERC-20 or the recently published ERC-777. In addition, it should have various additional features that make it suitable for securities from a regulatory point of view. For example, it should be possible to transfer funds from outside or retrieve lost or stolen assets.

Bitcoin formula: CTOR or the optimum transaction order

Little has happened at Bitcoin formula this week. Apart from a hackathon in Amsterdam announced for the end of October, CTOR attracted attention. This is the Canonical Transaction Ordering Rule, which will come into force with the Bitcoin formula Hard Fork in November. This rule is intended to specify the arrangement of transactions in blocks. Currently, the only requirement is that the transactions are arranged in a causally meaningful manner, i.e. that the inputs and outputs follow each other logically. With CTOR, the transactions are now also sorted alphabetically according to their transaction ID. Only the Coinbase transaction is listed before all others. This is not only readable, but is intended to provide long-term performance improvements for full nodes with shared UTXO records (current account balances, simply put).

Volatility minimization with Abra, new dPOW on Nano and new crypto currency with Mimblewimble
The paper from Cardano is somewhat under the wheels with regard to the distribution of rewards. In this paper, Lars Brünjes et al. present what a fair proof-of-stake system could look like without centralization.

The volatility of crypto currencies is a well-known problem. How, not a few ask, should an alternative monetary system be created if the volatility is too high? One solution is the use of Qubic, IOTA’s smart contract solution. In Abra, the associated programming language, one could implement financial tools that hedge against price fluctuations. In the classical financial market, options are used for this purpose, something similar is suggested in the linked article.

Nano, Maker DAO, MimbleWimble and Bitcoin trader

The distributed proof-of-work system of Nano is to be revised. In principle, Bitcoin trader in the Nano network takes over their proof of work, since everyone maintains their own block chain. For services with high transaction rates such as faucets or tipbots, however, this is uneconomical. Here is the idea that the proof of work can be calculated by others – for a small fee.

In Maker, formerly known as MakerDAO, the so-called Voting Proxy Contract has now been published. The aim of this is that all maker token holders must be significantly shorter online and still be able to participate in the governance. He can now set up a hot wallet solely for the voting, which he then uses as a proxy for his securely stored MKR tokens. In the meantime, there has also been an election about this system, in which the overwhelming majority voted for the basic principles of governance of Maker.

A few months ago we reported on MimbleWimble, a novel protocol focusing on anonymity. Besides Grin, the implementation presented in the linked article, there is also Beam. Unlike Grin, Beam, according to the white paper, sees itself primarily as a store of value and not as a commodity. The Public Testnet was recently released. With the clients downloadable via Github, everyone can now get an idea of this anonymity solution.

Stable Coins, Stable Coins, Stable Coins
The cryptopendant to the apple tree that everyone is supposed to plant before the end of the world is apparently the stable coin. Several efforts for new forms of stable coins made the rounds. The Gemini Dollar and Paxos have already been the subject of an article. Both are ERC-20 tokens on the blockchain, secured by dollars in FDIC-insured bank accounts. It sounds a bit like “Tether on Ethereum”.

In addition to these two stable coins, Ndau has also made a name for himself this week. Ndau is a stable coin, which according to developers relies on a “Blockchain Policy Council”. What one hears so far as information sounds strongly like a delegated proof-of-stake system. You can’t hear any more than that, except that the project promises to be a long-term store of value. All in all, it sounds like a collection of buzzwords.

CarbonUSD go into a little more detail and emphasize that their stable coin based on Hedera

Mix and Anonymize Bitcoin Transactions

We asked the CoinMixer team about Bitcoin mixes and the anonymization of Bitcoin payments.

CoinMixer.se exists since 2015 and anonymizes Bitcoin trader payments

In the German Bitcoin trader community the knowledge is full of gaps in many places. Many comments reveal that a lot of users can use Bitcoin, but they don’t really know how Bitcoin trader works and what traces it leaves behind.

CoinMixer says that everyone has the right to make their payments private. Bitcoiners must take measures to improve Bitcoin’s anonymity. After all, traces cannot be removed later.

We wanted to get to the bottom of the matter in more detail and therefore turned directly to the team at the German-language platform CoinMixer. In the following interview you will learn everything you wanted to know about CoinMixing:

How did the idea to create a crypto trader CoinMixer come about?

The emergence of new companies to analyse and evaluate crypto trader transactions has caused us great concern. We believe that Bitcoin should bring the freedom to use money without censorship. No one needs to know who I’m paying money to, and no one needs to justify not wanting to become a transparent crypto trader.

BTC-ECHO: What is your goal?

We want to enable our users to anonymise their Bitcoin in an uncomplicated way. We respect the privacy of our customers and delete logins as quickly as possible. There is also no need to create an account.

BTC-ECHO: How many people are working on the project?

We are a well-rehearsed, international team.

BTC-ECHO: For which markets are you available?

Everywhere. Any Bitcoin user can use CoinMixer.se.

BTC-ECHO: How exactly does mixing work?

Quite simple: We exchange Bitcoin of our users for Bitcoin in our “pool”. There are already mixed Bitcoins in the pool. The user is paid out in Bitcoin, which can no longer be specifically assigned to anyone by our internal mixer. In addition, these paid out Bitcoin have no connection to the Bitcoin address from which the Bitcoin was paid.

BTC-ECHO: What advantage does the service give me?

It prevents a blockchain analysis of payments. Many people want to purchase services anonymously, for example a VPN. It would be insane to buy it with Bitcoin, which are confused with one’s own identity. However, many of our users are convinced that all Bitcoin payments should be made anonymously.

BTC-ECHO: Bitcoin is “anonymous” by nature, isn’t it?

Bitcoin is pseudonymous. If a Bitcoin address is linked to an identity, a blockchain analysis can be used to determine where payment was made. For example, it can be tracked if a Bitcoin exchange has paid out. The Bitcoin exchanges naturally store who pays where. Any Bitcoin address could sooner or later be associated with a service. Persecution is still in its infancy. Bitcoin leaves traces forever, only caution can prevent this. Retroactively it is no longer possible.

BTC-ECHO: Is it safe?

Security is a matter of trust. The most important resource for a Bitcoin mixer is its good reputation. We take the following measures:

– A “Letter of Guarantee” is created for each mix. This is a letter signed with our PGP key that says “If you send x Bitcoin to Bitcoin address 1, then after y hours we will send your Bitcoin to Bitcoin address(es) 2,3…”. With this Letter of Guarantee you can cryptographically prove that CoinMixer.se has to send the Bitcoin. If a Letter of Guarantee should ever appear which was not followed by corresponding payments in the blockchain, our reputation would be ruined.
– Trust only develops with time. You can also mix small amounts of Bitcoin. If you have to mix a larger amount of Bitcoin, you can do so in small steps for your own safety.

BTC-ECHO: What does anonymisation cost me?

CoinMixer.se charges a random fee of 1-3 %. On the one hand we pay for the service and the costs of the large amount of internal Bitcoin transactions. On the other hand, the fee also protects against traceability: Finally, a blockchain analysis can also be done by the payment amount. Example: First 1.15827 Bitcoin is deposited in one place, and one hour later 1.15827 Bitcoin is paid to another address. We always advise to use multiple payout addresses, the fee helps with further obfuscation.

BTC-ECHO: Thank you very much for the interesting interview.

Do you already have experience with mixing and anonymizing Bitcoin payments? Would you like to share it with us in the comment function m

The pitfalls of inflation

Is the Bitcoin the money of the 21st century or just a fleeting phenomenon of modern times? What is money anyway? Which characteristics distinguish “good money”? Especially the libertarian branch of Bitcoin enthusiasts praises the crypto currency as the “money of the future”. One reason for this is the state’s control of classic monetary systems.

This series of articles takes up the findings of the Austrian School and classifies crypto currencies in the free-market economic philosophy. The source text is “What Has Government Done To Our Money?” by Murray N. Rothbard. The previous articles (1 & 2) showed that money is a commodity in the economy which is primarily used as a medium for exchange. Now we look at the role of the state in the monetary system.

Inflation and the Bitcoin code

The state is the only organization in society that does not receive its income from the voluntary exchange of goods and Bitcoin code services. Instead, a state confiscates, in sharp terms, its citizens’ money in the form of taxes. While these are a relatively direct source of income that citizens easily notice, the modern state can use another, more subtle means to increase its “profit. This is inflation. Inflation refers to the increase in the money supply and means a loss of purchasing power of the individual monetary unit.

Let us take as an example an economy with a money supply of 10,000 ounces of gold. A counterfeiter enters the stage and inserts 2,000 ounces of counterfeit money. What happens first? First, the counterfeiter experiences an advantage: he is 2,000 ounces richer in gold. But the more the new money penetrates the economy, the more the prices rise. The prices rise until they have adapted to the new money supply (of 12,000 ounces of gold). The advantage of the counterfeiter arises on the backs of those who get the “new” money last.

The consequences are dangerous for the Bitcoin code

“For many people, “more money” means “more prosperity” – in the case of inflation, however, this conclusion does not follow. Inflation usually happens insidiously and inconspicuously. Inflation is a race – the quickest person to get the new money has the greatest Bitcoin code advantage. Citizens with a “fixed income” – such as pensioners – are most affected by inflation. Inflation distorts the Bitcoin code price signals of the market. Companies overestimate their situation with the additional money. Inflation rewards debt taking.

Such a monetary system cannot exist forever. The more monetary units that are added, the more people want to get rid of their money. This culminates in a so-called hyperinflation – no foreign word for the population of Venezuela or that of the Weimar Republic almost 100 years ago in Germany. In hyperinflation, prices have to be adjusted daily or hourly because money is losing value so rapidly.

The cornerstone of currency devaluation
In order for a state to be able to make use of the silent tax resource, inflation, it needs one thing above all else: a monopoly on the minting of money. Many steps are necessary for the people to bow to such a monopoly. One is to spread the myth that only the sovereign – the state or the king – has the prerogative to coin a currency. Another is the separation of the currency name from any unit of weight (so “the dollar” was originally a synonym for a weight – namely “1/20 ounce gold”). Legal terms of payment are used by the state to determine which good is meant as “money” in the first place. As long as these laws function with money that the market has chosen, they do not play a major role. However, these laws establish an essential precedent: state control over money.

Once the state has claimed sovereignty over the currency, it breaks all ties to other goods. Measuring the weight of a monetary unit hinders this effort. In other words, “the dollar” must be detached from its original meaning (thus, “1/20 ounce gold”) and itself become a “tangibles good”. If any attachment to the real good is abolished, the state finally has the power to arbitrarily manipulate the money supply. The one who controls money controls the economy.

The monopoly position in the means of payment leads to further, unpleasant side effects. On the one hand, there is no longer any competition between means of payment – people can no longer choose “the best” money. On the other hand, there is no competition in coinage – the costs for this can be passed on to the involuntary “clientele”. The monopolist simply has no incentive to produce effective and efficient money – his customers have

Press comments: Bitcoin between hype and horror

The unprecedented hype surrounding the Bitcoin of these days is unparalleled: The fascination has never been greater, but the voices of doubt have never been so loud. With the launch of the long-awaited Bitcoin futures last week at the latest, the probably most prominent crypto currency found its place in the publications of the major media houses and publishing houses worldwide. Despite all the enthusiasm in the reporting, critical voices are also increasing: Tulip, bubble, fraud – all this has been blamed on Bitcoin in times of ever new price sprints and all-time highs.

4 Reasons why the Bitcoin profit review hype ends at zero

A year ago it was a nerdy marginal phenomenon, today it has arrived in the leading media: Bitcoin Profit Review 2018 » Full Scam Check Anyone who looks at the media world will quickly notice: The Bitcoin profit review goes through the ceiling and has made its way not only on the part of the financial specialists, but also into the economic parts of traditional newspapers.

BTC-ECHO has embarked on a journey for you through the commentary columns, columns and business departments of the media landscape and has taken a close look at the eyes with which the rapid rise of Bitcoin is viewed.

We are currently experiencing an invention that can change our lives. Which may make banks or other payment systems like PayPal superfluous.

Bitcoin’s price reaches dizzying heights. Lawrence Baxter advises investors not to be blinded by it. He predicts a sudden crash for the digital currency.

Bitcoin profit scam has a future

Everyone is talking about the digital currency Bitcoin profit scam; and rightly so. Because it will revolutionise our monetary system.

This alleged currency may be fascinating. But it doesn’t have what it takes to create a completely new monetary system that is not controlled by anyone and in which no central bank is in charge. Its value fluctuates far too much for that.

A few massive investors can rock it with a shrug. [Some big investors can make the market tremble with a shrug of the shoulder.]

3 reasons to doubt bitcoin, ethereum, litecoin and other cryptocurrencies [3 reasons to doubt Bitcoin, Ethereum, Litecoin and other crypto currencies]

Bitcoin’s euphoric rise has spread, something like cancer […] [Bitcoin’s euphoric rise has spread like a cancer]

Bitcoin Has Gone Mainstream. That`s a Big Deal [Bitcoin has arrived in the mainstream. This is a big deal]

Why investors needn’t fear bursting of bitcoin bubble [Why investors should not be afraid of the bursting of the Bitcoin bubble]

Will bitcoin become the fourth classic bubble in history? [Will Bitcoin be the fourth big bubble in history?]

Now, as the Chicago Mercantile Exchange prepares to launch bitcoin futures, the market could become more transparent going forward. [Now that CBOE is preparing bitcoin futures, the market could become more transparent and thus grow].

I Was Wrong About Bitcoin. Here’s Why. [I was wrong about Bitcoin. Here’s the reason.]

“The Bitcoin dream is all but dead,” I wrote. Hoo boy, did I blow it. “[“The Bitcoin dream is dead,” I wrote. Boy, was I wrong.]

The Bitcoin revolution is only just beginning.

Technology that backs up cryptocurrencies could also transform tax collection, benefits delivery and border control [The technology behind crypto currencies could also strengthen tax collections, bonus distributions and border controls]

Conclusion – Between Horror and Hype
Although the Bitcoin’s spectrum of interpretations is wide when viewed from the perspective of the global media landscape, there is still something decisive to note: While Bitcoin’s IPO last weekend was the first time it was able to bring its foot into the difficult-to-open gate of the conventional financial world, the currency made another groundbreaking leap – into the mainstream of international reporting and traditional leading media.

Bitcoin demand in India is ground for crypto-fraud

The efforts of the Indian government to demonstrate led to an unforeseen increase in the Bitcoin price in this country. The government’s decision led to a sharp increase in popular interest in Bitcoin. After the decision, the search term “buy bitcoin” could be identified as one of the most popular Google trends.

A sensible alternative to cash

After the first onslaught of people who tried to get their ‘sudden’ black money down, a second wave followed. These people are looking for a sensible alternative to cash and are driving demand for Bitcoin.

But as with all new things, the Bitcoin adoption in the country comes with its own typical challenges. The sudden interest in Bitcoin, without a sound knowledge of crypto currencies, makes the local community vulnerable to fraud.

The majority of Indian Bitcoin users are simple speculators who know relatively little about the technical details. This gap has resulted in Bitcoin investment projects sprouting up – including cloud mining and stock exchanges. BTCIndia seems to have been created by such a gap.

BTCIndia is found guilty of fraud in a Reddit thread. The editor ‘twistyeyed’ claims that BTCIndia takes advantage of India’s price differences and that the corresponding website link was deleted after it was addressed to Reddit. The Reddit account ‘twistyeyed’ also reminded that there should always be an investigation. If you are in doubt, you should always go back to the community and ask there before sending your BTC to a certain destination.

Warning signals that the editor addressed are, among other things, the course rates on the website that fluctuate strongly and the deposit address that leads directly to fraudsters.

Transaction details

Another editor gave his transaction details, which should serve as proof for the thread “Scammed at btcindia.org” (German: Betrogen durch btcindia.org). Another editor named Anducck added in this article, “Compared to the real rates in India (which so far are no more or less than 770 and 790 US dollars), > 900 US dollars is a clear sign of fraud.”

Another Reddit thread called “Has anyone done any trading with btcindia.org” raised further doubts: “Did anyone do any trading on btcindia.org”? In the article, editor Nimble Bodhi said that he was sure that BTCIndia’s site was a fraud. The template of the site, as well as the promises and the graphics had already been used for other fraudulent exchanges. One should avoid these in any case.

Ultimately, a growing interest in Bitcoin is good, but people should take their steps in the new direction with caution.