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Trouble Looming In The Blockchain Industry 2019

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Trouble Looming Blockchain Industry 2019

In 2008 Satoshi Nakamoto deigned Blockchain to serve as a public ledger for cryptocurrency (Bitcoin). Which was the first digital currency to manipulate transaction without the need of centralized authority? As the world goes through a metamorphosis, technology grows alongside it.

Blockchain, as we all know is an open source wallet which is distributed and controlled by decentralized activities that keep transactional records between two people. Blockchain contains cryptocurrency wallets which control all account activities such that transactions are verified to ensure that they are owned by an individual. In relation to this, blockchain technology is vulnerable to attackers. These are the top trouble looming blockchain industry 2019.

For some time now blockchain has gained a lot of attention in divers’ area, which also comes along with challenges and problems. Smaller blockchains have a higher risk level of been attacked since few miners use their computer power needed to control more than 50% is lower.

Hackers are able to hack into a blockchain when they produce more than 50% of the blockchains power, in view of this they can control all activities by modifying data, double spending attacks, stop the block from verifying transactions and prevent other miners from creating blocks, which means they have authority to decide which block is permissible. which apparently cause security issues.

One problem facing blockchain is Hard Fork issues which are related to the upgrading of nodes. Also known as a software upgrade. It involves a wide range of blockchain where new nodes are not compatible with the old nodes or old node does not agree with the mining of new ones. At the end of the process, the old node will still control the chain even though it has been upgraded which is not right.

The computing power of new nodes are always stronger than that of the old nodes but during the process of upgrading one chain becomes two, which is not supposed to be so. Which has become one of the major problems facing blockchain?

Blockchain can be private, that is individual can verify and check transactions and also taking part in the census. Bitcoin and Ethereum are the typical examples of public chain. Private blockchain, where nodes are restricted with strict authoritative management.

Not every node can take part in the chain and lastly consortium blockchain, which is related to business and can be private or public. Blockchain such as Bitcoin and Ethereum, every recorded transaction is available for someone to look at, well that doesn’t mean they see your identity.  The fact that a large amount of information can be displayed in the public domain is against the norms in relations to financial, healthcare and legal sectors which have the robustness to privacy requirement.

Ethical issues have been one of the major troubles looming blockchain industry. Cybercrime has been in the system since the invention of Bitcoin. It is clearly seen that the price of cryptocurrency has been on an increase due to criminal activities. With the use of the dark web, cybercriminals are able to undertake illegal activities such as selling of drugs, weapons, fraud and scam, information leak, child trafficking, and other banned activities anonymously with bitcoin and untraceable transaction to money launders.

It is clearly seen that none of these problems in the blockchain industry has straightforward answers in solving them which limit the usefulness of the blockchain. Due to these problems looming in the blockchain sector, it makes it difficult to predict capacity accuracy.

Cryptocurrency

Peter Schiff Warns Of A Possible Crash Of Bitcoin Below $2,000

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Peter Schiff Warns Of A Possible Crash Of Bitcoin Below $2,000

Peter Schiff, a stockbroker, and financial commentator took to Twitter recently to voice his opinion on the direction of BTC. Though he said the crypto asset is on his way to $6K, however, warns that things can go worse, driving price below to $2K.

A Possible Crash Below $2,000 For Bitcoin (BTC)

Peter Schiff, is known for his love for gold while exhibiting intense hate for bitcoin. However, he has kept an eye on bitcoin, updating the community about its impending crashes to prove his point that bitcoin is worthless.

Though he admitted possessing some bitcoin, his recent tweet still shows he doesn’t see the asset as a wise choice for smart investors.

Peter Schiff, in his recent tweet, expressed how horrible things were looking for bitcoin. According to Mr Schiff, bitcoin is in a move to complete a popular pattern, the head-and-shoulder, which will see the asset drop in value to about $6,000. Furthermore, he opines that bitcoin could slump drastically below the $2,000 mark if the pattern is completed.

While many do not agree with Peter Schiff, some others think bitcoin crashing below $2,000 would be an opportunity to buy more bitcoin.

All these, however, is happening at a time when the institutional traders are trying to pick some interest in bitcoin as trading on the futures exchange, Bakkt, continues to rise.

At the time of writing, bitcoin is currently trading at $8,062.72, with a market cap of over $145 billion according to CoinMarketCap.

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Cryptocurrency

Ripple Sends $26 Million Worth of XRP to Jed McCaleb, XRP Army Fears Another Dump in Price

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Ripple Sends $26 Million Worth of XRP to Jed McCaleb, XRP Army Fears Another Dump in Price

Time and again, several members of the XRP community have opined that the massive dump of the crypto asset in the market has impacted on its price, negatively. Now, there are speculations for another dip in XRP’s price. The latter is after Whale Alert informed on September 7, 2019, that 100 million XRP tokens have been transferred to Jed McCaleb, Ripple’s co-founder. 

Ripple Sends XRP Worth About $26 Million to McCaleb’s Wallet

According to Whale Alert, Ripple transferred 100 million XRP valued at $26,322,440 to Jed McCaleb’s wallet. The transfer has led to the sentiment in the crypto space that XRP might tank below its $0.262 price today. Also, the opinion is due to McCaleb’s reputation for dumping huge amounts of XRP in the market.

McCaleb is Ripple’s co-founder, and in 2014, Ripple transferred 9 billion XRP to him as his share for founding the company in 2012. However, the blockchain company entered a seven-year agreement with McCaleb to control how much XRP he can sell in the market yearly.

Per the agreement, the co-founder could sell $10,000 worth of XRP per week in the first year, $20,000 per week in the second, third, and fourth years, and “750 million XRP per year for the fifth and sixth years.” In the same vein, he could choose to dump 1 billion XRP yearly for the seventh year, and 2 billion XRP yearly after the seventh year.

McCaleb’s Dump of XRP Impacts of Asset’s Market Price

Given that this is the fifth year since the agreement was made, McCaleb can choose to dump thousands of XRP tokens daily. In 2014 when he announced his plans to sell a significant part of his XRP holdings, the value of the asset declined by 40%. As such, the continuous dump of the asset has also been pointed out as one of the reasons why it is not spiking like other top cryptocurrencies.

Asides from being reputable in the XRP community, McCaleb is also a name associated with Mt Gox, one of the first cryptocurrency exchanges. He founded the platform and sold it off years before its hack. Similarly, McCaleb is the creator of Stellar (XLM), the 11th largest cryptocurrency by market cap.

Nonetheless, the crypto community has aired its views about the potential for McCaleb to release another share of XRP to the market. Crypto BitLord, for instance, said: “Wow. Another cool $26M Jed can unload at market. This shits out of control.” Another remarked that: “know, right?! Private businesses shouldn’t be allowed to exist. The name “Jed” should be banned.”

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