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Trouble Looming In The Blockchain Industry 2019



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.


AMC Theatres to Start Accepting Ethereum, Litecoin, And Bitcoin Cash In Addition To Bitcoin By Year-End



AMC Theatres to Start Accepting Ethereum, Litecoin, And Bitcoin Cash In Addition To Bitcoin By Year-End

The world’s leading movie theatre chain will be accepting Litecoin, Ethereum, and Bitcoin Cash in addition to Bitcoin as payments for confectionaries and movie tickets at all its U.S. outlets before December 31.

This is according to a Twitter announcement made by the Company’s C.E.O Adam Aron on Thursday morning sending out a wave of bullish sentiments on the three cryptocurrencies by crypto enthusiasts.

“Cryptocurrency enthusiasts: you likely know AMCTheatres has announced we will accept Bitcoin for online ticket and concession payments by year-end 2021. I can confirm today that when we do so, we also expect that we similarly will accept Ethereum, Litecoin and Bitcoin Cash.” 

Last month, the C.E.O in an early morning earnings call had disclosed that AMC was actively engaged in setting up payment systems that would allow movie enthusiasts to pay for various services and purchases using Bitcoin. He had also acknowledged receiving a lot of inquiries from users and shareholders on the possibility of the company accepting payments in crypto which could have largely informed Thursday’s announcement.

Although Litecoin foundation did not respond to the statement in writing, Litecoin’s news page and Charlie Lee, the founder of Litecoin retweeted AMCs announcement gesturing their affirmation.

Broadening the crypto payments net

Litecoin has been making inroads in institutional halls thanks to its long-term persistence and reliability. Its completed MWEB upgrade project which allows the network to become much more scalable and make transaction amounts un-viewable to the public makes Litecoin the ideal choice for payments while protecting users’ data.

According to the Litecoin Foundations Q1 report, various companies have already announced that they’re integrating Litecoin including Paypal, Vaultoro, Flare Network, Moon among others. Its successful payment integrations have also attracted a fair share of challenges with a recent false report that Walmart was integrating Litecoin in its payment network.

Bitcoin cash which fulfills the original promise of Bitcoin as “Peer-to-peer electronic cash” could also see mass use given its fast transactions, low fees, and reliable confirmation. It also allows use on a large list of wallets including Ledger and Trezor among others, which are synonymous with most U.S. crypto owners. Its discounts on payments due to the elimination of credit cards are likely to attract most AMC movie enthusiasts looking to pay using this method.

On the other hand, Ethereum payments to the company could be fulfilled through Ethereum-Pay,  a decentralized ERC-1363 payable token built on the secure Ethereum network specifically tailored to be integrated with E-commerce transactions. 

EthereumPay creates a universal payment platform that allows merchants & users around the world to do business with each other instantly and cheaper than ever. Ethereum payments are accepted by companies including Sotheby, Overstock, Gipsybee,  Shopify CheapAir, Tripio among others.

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Crypto Researchers Concerned About The ‘Centralized Structure’ Of The Binance Smart Chain



Crypto Researchers Concerned About The 'Centralized Structure' Of The Binance Smart Chain

Binance Smart Chain has been rising in popularity as interest rates from different parts of the world, including South Korea, sent the network’s transaction records to new highs. However, this has not deterred analysts’ from pointing out the increasing level of centralization within the network. Ryan Watkins, a Messari analyst recently addressed the influence that Binance has on the entire Binance Smart Chain, explaining that most of the commendable progress made on the network is not the result of the implementation of innovative concepts. Rather, it is a product of Binance’s control over the BSC network.

“The reason why BSC is faster and more scalable is not because of some magical technological innovation. No, it’s instead the magic of centralization. BSC is an Ethereum fork with a centralized validator set. That’s it. Nothing more.” He wrote on Twitter.

Unlike some other networks, the Binance Smart Chain has a total of 21 validators (people who verify the transactions and confirm their legitimacy, before adding them to the Blockchain). These validators are handpicked by the Binance Chain, further strengthening the notion that the network may be more centralized than it shows itself to be. 

Wilson Withiam rolls out some points to consider, starting with the pattern of resetting active validators, which is determined by the voting power of each validator. He notes that BNB staking and delegation is carried out on the Binance Chain, by Binance Chain validators as well.

In essence, Withiam argues that the pattern of validator distribution across the Binance Smart Chain is questionable as the identities of those behind the nodes in the validator sets are not made transparent. As he puts it “BSC now supports several third-party validators, although at least 5-6 others have close ties to Binance. The distribution of validator accounts is far less clear for Binance Chain.”

To dispute that Binance’s user experience is not ahead of other networks is false, and Withiam agrees with this. Even Watkins acknowledges this as he noted that BSC has fueled mainstream adoption of DeFi “Binance has incredible reach and influence and has used that to funnel a boatload of new users in DeFi. Binance executes period. That’s why BSC is winning.” He asserted. 

However, he argues that speed and scalability outside Ethereum without sharding or a centralization can only be legitimately found on the Solana Blockchain. Conclusively, Withiam urges BSC users to poke into the network, enough to understand where the loopholes are. 

“For those using BSC, take the time to understand the topology of the network. Sure, the fees and speed (both UX factors) are undoubtedly preferable. But strong censorship resistance and fault tolerance are not part of the package.” He wrote in conclusion.

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