Hot Topics

Advertisement

Advertisement

How Will Libra Coin Launch Impact Bitcoin Demand?

How Will Libra Coin Launch Impact Bitcoin Demand?

The upcoming launch of Facebook’s Libra coin is perceived as a major development in the cryptocurrency arena. Facebook (FB) users will soon be able to send Libra to one another through the social media network. The Libra coin will also be available for purchasing goods and services through Facebook and over the internet.

Facebook has shortlisted over a dozen companies across multiple industries to fast-track the rollout of Libra coin. Each of these companies is set to invest $10 million in the development of Libra coin, including Uber Technologies, Inc., PayPal Holdings Inc, MasterCard, and Visa. Various reports suggest that Facebook is seeking to raise up to $1 billion to fast-track the new crypto initiative. This is a major step forward for Bitcoin and altcoin which have witnessed tremendous volatility of late. That the Bitcoin price fluctuates wildly (recently hit over $9,200) must be measured against past-performance too.

The crypto boom of 2017 spurred widespread interest among social media networks. Facebook has been interested in launching its own digital coin since 2018, but specific details of the project remain a mystery. Facebook’s signature coin will be pegged to a basket of fiat currencies in an attempt to hedge against market volatility in the digital currency markets. That Facebook has decided to launch a digital currency this late in the game is a mystery to some, given the devaluation that has taken place since the cryptocurrency boom of late 2017.

Libra Coin Set to Launch on Massive Global Platform

Now, the market is saturated with over 2,230 digital currencies and a combined market capitalization of $276 billion (June 16, 2019). Facebook’s Libra coin may inject plenty of new interest into the market, particularly at a time where altcoin like Ethereum (ETH), XRP (XRP), Litecoin (LTC), and Bitcoin Cash (BCH) are dominant. The difference with Facebook’s Libra coin is that it has tremendous brand recognition with a user base comprising 2.38 billion MAUs (monthly active users).

Facebook’s success hinges upon its credibility with US users. The challenges for Facebook in 2019 are significant, given the regulatory changes that are expected to take place. These changes will result in cost increases for cryptocurrency exchanges and some 500 cryptocurrency funds too. A bold new government initiative known as the Financial Action Task Force (FATF) will be preparing the groundwork for the rules of regulations of trading cryptocurrency across over 200 countries and territories.  The guidelines will provide information for government conduct vis-à-vis how businesses operate with cryptocurrencies and digital tokens.

Stringent Trading Rules Expected from FATF and FINRA

The new trading guidelines will automatically kick in when transactions of at least $1,000 are processed. The new rules require details of recipients to be sent to the service provider. These time-consuming initiatives are likely to result in delays and tremendous inefficiencies. The challenge for the FATF is the anonymous nature of recipient wallets. The inter-governmental rules will necessitate an overhaul of the current system.  With around 200 global cryptocurrency exchanges in operation, it’s likely to take some time to restructure operations to meet with compliance standards.

Bloomberg reported that without a technological shift at cryptocurrency exchanges, it will be futile trying to implement privacy safeguards. These requirements could support a rise in person-to-person trading activity for enhanced privacy. It’s not only the FATF rules that are set to uproot the industry, it’s also initiatives by FINRA (Financial Industry Regulation Authority) which are going to be cracking down on regulatory enforcement of the cryptocurrency arena. Countries which do not comply with these regulatory frameworks will be placed on a blacklist. This would effectively preclude any attempt to trade on the global financial markets.  

Control of Libra Coin – Separation of Power

Facebook’s Libra coin will be indirectly controlled by the Libra Association. Facebook Inc. and the Libra Association are likely to assist in the development of the payments processing network for Libra coin. Of course, concerns about privacy-related issues are always a bugbear for Facebook which has been struggling somewhat with these issues. Facebook chat apps will be supporting Libra coin. The Libra coin White Paper will provide important information on how Libra coin works. The scheduled release of the coin may even be pushed back until next year. What Facebook is aiming for is clear: a virtual shopping platform within the Facebook framework.

It appears that the Facebook coin will not adversely impact Bitcoin. For starters, users will want to still access blockchain payments outside of FB. Secondly, interest in Facebook’s Libra coin is likely spur demand for Bitcoin and other altcoin too.

You can share this post!

Advertisement

Advertisement

crdt banner

DeFi Startup Acala to Build New Oracle Network For Polkadot Ecosystem 

DeFi Startup Acala to Build New Oracle Network For Polkadot Ecosystem 

DeFi project Acala is working to revolutionize the way projects using Polkadot information get their data — specifically, price feeds. 

Oracle exploits in the DeFi world are a hot topic right now: an eye-watering $100 million has been lost recently due to hacks. This is because protocols are getting their data, particularly price data, from just one source. 

Acala, in a technical collaboration with Laminar and Band Protocol, wants to make oracle networks more decentralized. 

How will they do this? 

The idea is that projects on the Polkadot ecosystem will use Acala’s Open Oracle Gateway. This system will speed up and secure the process of moving information off-chain to on-chain. 

Acala will do this by allowing multiple parties to create their own oracle price networks and provide price feeds — as long as they’re approved. 

Those using the Open Oracle Gateway will be able to pick the price feeds they want to use and choose an aggregated feed combining data (something that has been recommended as getting data from a single source compromises security.) 

All price feeds posted to Acala will be up-to-date, valid and refunded with transaction fees incurred, too, making them essentially free to anyone using Acala’s service. 

Why should we care? 

A number of hacks have happened lately because criminals are able to exploit weak oracles. Experts have also warned that this is likely to continue happening unless projects get their data from a number of sources. 

Acala is providing a solution: projects will be able to get price data from a large number of sources and the data will be approved and safe. 

This will protect exciting projects built on Polkadot — an ecosystem that has had a meteoric rise.

Who’s Acala? 

Acala is a DeFi hub and stablecoin platform powering cross blockchain liquidity and applications. The Acala Dollar (aUSD) is a multiple-asset-backed decentralized digital currency without volatility for the Acala network and wants to provide stability to those building on the Polkadot ecosystem.

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Related TAGS:

You can share this post!

Advertisement

crdt banner

BitTorrent Arrives in Huawei’s App Store Following Latest TRON Partnership

BitTorrent Arrives in Huawei’s App Store Following Latest TRON Partnership

TRON, the crypto network whose architects seem to never sleep, is back with another partnership announcement. Its latest, a deal with telecoms titan Huawei, is sure to get tongues wagging, not just within the cryptosphere, but the broader tech industry. Four of BitTorrent’s apps have been added to Huawei’s native app store, making them accessible on up to 3 billion Android devices.

BitTorrent is already the world’s largest file-sharing network, boasting 100 million users who access the service via desktop and mobile. The addition of the app to Huawei’s AppGallery extends the reach of the file-sharing network, placing it in the hands of potentially billions of users. Given the difficulty of having crypto-related apps admitted into Apple’s App Store, the deal will be welcomed by Asian smartphone users seeking a simple way to torrent files and interact with crypto.

No other company manufactures more telecommunications equipment than Huawei, the Chinese tech company that was founded in 1987. Today it has over 194,000 employees and a presence in 170 countries. It is China’s largest tech firm and maintains a strong presence all across Asia.

TRON Enters Another App Store

TRON, which owns BitTorrent network, and whose founder Justin Sun is the company CEO, has already gained admittance to Samsung’s Galaxy Store. Earlier this year, a number of TRON-based dApps were listed there and connected with the built-in TRON crypto wallet. Huawei’s decision to partner with TRON can be seen as further evidence of how crypto is permeating every vertical it touches. While no knowledge of cryptocurrencies is required to use the BitTorrent app, its tokenized ecosystem – powered by the BTT token – creates an economy for rewarding file sharers, who provide network bandwidth.

With payment platform PayPal recently adding support for cryptocurrency, which can now be used as a means of payment with online merchants, digital assets are enjoying a rip-roaring end to 2020. It’s a year that has tested the crypto market, and indeed the entire world, as a series of macro forces including economic and biological crises have buffeted society and impacted the markets. Now, with the worst ravages of the pandemic appearing to have passed, and multiple vaccines on the verge of being rolled out, the stage is set for a remarkable recovery.

As TRON’s mission to expand into every major entertainment ecosystem accelerates, so does the case for TRX and BTT being supported by more leading platforms. Coinbase and PayPal are likely to be the next to bow to the inevitable and invite the TRON family into the fold. Those are rumors for another day, though. This week, all that matters is that TRON has entered the Huawei app store via BitTorrent, and it won’t be relinquishing its place in a hurry.

“This is another huge milestone for TRON and BitTorrent to be listed by one of the largest Android manufacturers in the world,” enthused Justin Sun. “We are excited to see the blossoming universe of distributed networks grow via Huawei devices and technology.”

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Related TAGS:

You can share this post!

Advertisement

crdt banner

Two of the biggest economies in the Middle East have teamed up to create a joint CBDC

Two of the biggest economies in the Middle East have teamed up to create a joint CBDC

Quick Take

1 minute read

  • Could a dual CBDC be viable?
  • Two of the biggest economies in the Middle East have joint forces to test a partner CBDC.

A report was released earlier this week from two of the most powerful economies in the Middle East that looked into a year-long joint project for a central bank digital currency and the results are very positive.

Project Aber was first announced in January of last year and is an effort between the United Arab Emirates and Saudi Arabia to help create a “proof of concept“ designed to “contribute to the body of knowledge in CBDC and DLT technologies.“

This is the first project of its kind where two central banks have worked collectively on such a project. The report highlights that the name choice of Aber was particularly chosen as it relates to the core mission of the project.

“The name Aber was selected because, as the Arabic word, for “crossing boundaries”, it both captures the cross-border nature of the project as well as our hope that it would also cross boundaries in terms of the use of the technology.”

The report highlights that the project used a digital currency backed with real money in order to force more research and consideration into issues that surround securities and payment systems that are currently existing.

On top of this, the report ends noting that a dual issued central digital currency was not only possible for cross-border payments but that it can even provide a significant improvement over centralised payment systems.

“The key requirements… were all met, including complex requirements around privacy and decentralization, as well as requirements related to mitigating economics risks, such as central bank visibility of money supply and traceability of issued currency.”

 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

You can share this post!

Advertisement

crdt banner

Sino Global Capital CEO believe there is no need for FUD just yet

Sino Global Capital CEO believe there is no need for FUD just yet

Quick take

1 minute read

  • Over the past few weeks, the leading cryptocurrency and many alternative digital assets have seen fluctuations in the price value. 
  • There have been numerous price dips last week and many traders seem to be experiencing a lot of uncertainty and doubt.

Over the past few weeks, the leading cryptocurrency and many alternative digital assets have seen fluctuations in the price value. There have been numerous price dips last week and many traders seem to be experiencing a lot of uncertainty and doubt. But the head of research at the blockchain investment company Sino Global Capital, Dermot McGrath, has said that the firm prefers to look long-term.

Last week, the Chinese government had seized $4.2 billion worth of crypto assets as a part of the Plustoken pyramid scheme and the court proceedings relating to it. After news broke on this, rumours were flying around the industry that these tokens were getting ready to be dumped on the open market and as a result, prices crashed further.

On Twitter, the chief executive officer of the blockchain investment company, Matthew Graham said the following on the Ponzi scheme:

Furthermore, McGrath spoke in an interview recently with CT saying that investors should look outside of the immediate headlines going on to note:

“In the crypto and blockchain ecosystems it is important to be able to ‘cut through the noise. We are long term bullish on Bitcoin and we continue to see the industry professionalize and mature as an asset class."

McGrath went on to discuss the topic of Chinese crypto miners saying that many have predicted that these individuals could conduct a 51% attack on the network for bitcoin but rejects this saying:

“Some of the reason that “Chinese miners” have been a “boogeyman” to western traders is simply a lack of understanding. In theory, of course we know that 51% attacks can occur, but the level of centralization/coordination and incentives simply does not exist among the Chinese miner community for top cryptos.”

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

You can share this post!