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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

Tron (TRX) Finds its Way Back to the Top Ten List

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Tron CEO Justin Sun, known for his flair for publicity and announcement of any achievement on his network announced in a tweet that Tron has made its way back to the list of top ten performing cryptos. TRX’s performance has been outstanding since the second quarter of 2019 both in its level of development and features.

According to the Coinmarketcap.com index at the time of writing, the trend curve shows Tron is moving higher than most other coins including Bitcoin (BTC) and Ethereum (ETH). It currently trades at $0.039 increasing at 6.18% in 24 hours at a market cap of $2.6 billion.

A few days ago, Tron (TRX) had a new surge in price which saw it to the $0.04 trading price. This new rate has been retained seeing the digital asset performing higher than most other cryptos.

Looking at the recent happenings that have created a boost in Tron (TRX) performance; it can be easily seen that though the network has recorded few partnerships with other companies, more of what pushes up its performance is the volume of activities on the platform.

A report from Dapp.com states that Tron is the most ambitious project in the Dapp field. In the second quarter of the year, it has been able to launch $2 million projects more than other blockchain protocols in upgrading its Dapp ecosystem.

A review of TRX performance reveals that in a space of four months, the transaction volume increased from less than 130,000 transactions to  2 million transactions.

Investors may still not be so willing to stake much on this digital asset even with every sign of high returns, because the trend in activity can change any time.

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Cryptocurrency

World’s Largest Interdealer Broker to Offer Crypto Derivatives

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Why Bitcoin Is Better Than Other Cryptocurrencies

TP ICAP has entered the crypto market where it is to offer crypto derivatives, hoping to boost its dwindling core business which is in commodity, financial and energy markets. Last year, TP ICAP lost 36% of its market value in the wake of the financial crisis.

It has since salvaged about 10%. TP ICAP is set to be the intermediary between customers wanting to buy and sell Bitcoin futures, Bloomberg reports.

The firm’s new venture will be based in London and will be led by Simon Foster and Duncan Trenholme. This move is however not sudden as it might seem. Roughly a year ago, TP launched a working group tasked with examining the firm’s best approach to cryptocurrency.

Notably, a year later, they announce their approach to crypto to be trading of Bitcoin futures and they envision adding non-deliverable forwards (NDFs) tied to Bitcoin.

This is a sweet spot for the firm as it joins other big players such as Fidelity Investments, JP Morgan, and Intercontinental Exchange to engage in crypto derivatives trade. These firms’ decision to engage in Bitcoin, derivatives trade is unlike their clients’ who prefer to not trade in cryptocurrencies that are still recovering from the infamous yearlong slump.

Bakkt, a much-anticipated crypto trading platform known for its multiple delayed times is set to launch its own physically settled Bitcoin futures trading testing on July 22. Additionally, Nasdaq is set to launch its own crypto futures platform during the course of this year.

“Every institution is on an educational journey,” said Trenholme, who is co-leading TP ICAP’s new venture. “Many are exploring how tokens can legitimately be traded or stored and I’d expect more projects to hit the market over the next year or two.”

TP ICAP is also exploring other digital asset offerings. The firm is thinking about participating in the actual cryptocurrency market. “We want to be close to what’s happening within this nascent asset class because we believe it’s important to invest in the early stages of a growing market,” said Simon Foster.

“TP ICAP also understands that this technology could disrupt or impact other asset classes where we currently operate, so we feel it’s important to be informed.”

This venture will entail cash-settled futures contracts trading on a regulated market which will be managed by CME Group to avoid potential risks of fraud and market manipulation. Their clients will also have to undergo rigorous anti-money laundering and identity checks.

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