Bitcoin Cash Developers Debate an Idea Called Pre-Consensus

Technology & Security

This past Thursday, the lead developer of Bitcoin ABC, Amaury Séchet, published a paper on the social media platform Yours.org about a protocol technique called ‘pre-consensus.’ According to Séchet, and other BCH developers like Bitcoin Unlimited’s Peter Rizun, pre-consensus could improve block propagation time, benefit zero-confirmation reliability and help delegate decisions tethered to consensus conditions.

Also Read: Vietnam’s Central Bank Thinks Cryptocurrency Miners Should Be Banned

Bitcoin ABC’s Amaury Séchet Publishes a Paper Called ‘On Markets and Pre-Consensus’

Bitcoin Cash Developers Debate an Idea Called Pre-Consensus
Amaury Séchet

This week, Amaury Séchet, the Bitcoin ABC client’s lead developer announced on Twitter that he had wrote a paper called, “On Markets and Pre-Consensus.” The article discusses the concept of pre-consensus which Séchet describes as a protocol that enables network participants to agree on what the next block size will look like. Various developers have discussed this idea before, including Bitcoin Unlimited’s chief scientist, Peter Rizun, who wrote about the subject for the Ledger academic publication, and Rizun also discussed pre-consensus during his talk at the Satoshi’s Vision Conference in Tokyo.      

“Even before Bitcoin Cash was a thing, I was promoting the idea of pre-consensus — This refers to a set of technologies allowing network participants to agree as much as possible on what the next block is going to look like,” explains Séchet’s paper. “If done well, this provides significantly stronger 0-conf guarantee that we currently have, while also allowing to reach greater scale by moving work out of the critical path (if a node know what the next block is going to look like, a lot of the validation work can be done ahead of time).”

As it turns out, pre-consensus has the added bonus effect that it allows to delegate the responsibility of picking various values which are currently centrally planned to the market. Actors who use different policies will be able to reconcile their differences in a time scale that is compatible with 0-conf.

Bitcoin Cash Developers Debate an Idea Called Pre-Consensus

Séchet Says Pre-Consensus ‘Too Important to Not be Tackled Now’

Séchet delves further and states that pre-consensus has been on the BCH roadmap since day one, and has made “zero progress” so far. He explains that the past year had been hectic and the latest “flavor of the day” is tokens.

“While all these projects have value, it is clear that I need to ruthlessly prioritize pre-consensus,” Séchet emphasizes.   

The actions I have to take along the way will surely irritate many, but this is too important to not be tackled now.

Nchain’s Craig Wright: ‘No Hash Goes to This Crap — They Want It, They Fork It’

Bitcoin Cash Developers Debate an Idea Called Pre-Consensus
Craig Wright.

After Séchet published his idea and fellow colleagues began to share the paper on Twitter, Nchain’s chief scientist Craig Wright spoke out against the pre-consensus idea. “No hash goes to this crap — They want it, they fork it, without us,” Wright states on Twitter. “Without the apps using our code, our IP etc. — Without the companies, we have invested in.” Of course, the outburst from Wright got the community stirring wildly into a heated discussion.

There’s also a Reddit conversation about pre-consensus and Wright’s comments on the subreddit r/BTC which has over 400 comments at the time of writing. The top comment belongs to Bitcoin Unlimited’s lead developer, Andrew Stone. “At Satoshi’s Vision Conference, Craig Wright said his miners were going to detect and somehow penalize double spends which is a form of pre-consensus,” Stone says. “We don’t even know concretely what Deadalnix (Amaury Séchet) is proposing so how can a person reject it and call it crap?”

An Avalanche of Pre-Consensus Emotions

Other developers such as the Yours.org founder, Ryan X Charles, seemed to be interested in the idea of pre-consensus when discussing the subject in one of his latest videos. Charles gives his viewers a glimpse of what he thinks about Séchet’s latest statements, and details there is also a paper called, Avalanche, which offers a unique approach to pre-consensus. The paper “Avalanche: A Novel Metastable Consensus Protocol Family for Cryptocurrencies,” was written by a group of developers who call themselves ‘Team Rocket’ after the mischievous Pokémon characters.

Other members of the community dislike the idea of pre-consensus and have shared their responses to Séchet’s recent article. One person’s post on Yours.org called “Pre-Consensus Implies Content Without Giving It,” is particularly interesting. In the writing, the author compares pre-consensus to the Segregated Witness protocol (Segwit) perverting the underlying foundations of Nakamoto Consensus.

“This will change if we make a fundamental protocol change like a pre-consensus,” explains the author @Logan.

We will be in the same position as Segwit, making the argument that Bitcoin needs to change and adapt over time. We will no longer be the protocol as described in the white paper.    

What do you think about Séchet’s pre-consensus statements? What do you think about Nchain’s Craig Wright disagreeing with the idea? Let us know what you think about this subject in the comment section below.


Images via Shutterstock,Twitter, Pixabay, and Wiki Commons. 


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Insurance Giants See ‘Big Opportunity’ in Cryptocurrency Storage Coverage


Big insurance companies such as XL Group, AIG and Chubb are quietly offering cryptocurrency insurance as cryptocurrencies and blockchain technology continue to gain acceptance.

While the insurance companies active in this sector are not doing a lot to publicize their activities, those interviewed said they can avoid liabilities.

According to Bloomberg more than a dozen underwriters are providing cryptocurrency coverage, although most insurers, when contacted, chose not to be interviewed.

More crypto startups, meanwhile, are viewing insurance coverage as important as they recognize the need for protection from crime, as well as coverage for legal actions against executives and board members.

Lucas Nuzzi, director of technology at Digital Asset Research, said insurance is a necessity for crypto companies, as such protection can make it easier for companies to work with banks.

Premiums Not Cheap

The premiums are not inexpensive, however, as underwriters in some cases are charging more than five times what an average business would pay to protect against loss and theft.

Crypto startups can pay premiums up to 5% of coverage limits annually. Companies seeking more coverage can require up to 12 underwriters, each of which can offer $5 million to $15 million in coverage one source noted.

Mike Belshe, CEO of BitGo, said the company met with about 75 insurers in May after discontinuing its coverage in 2016 due to the cost. The company became one of the first in the industry to receive insurance in 2015.

Allianz Sees ‘Big Opportunity’

Christian Weishuber, who represents Allianz, said cryptocurrency storage insurance represents a big opportunity. The insurer has offered individual coverage for cryptocurrency theft for the past year. Weishuber said digital assets are becoming more relevant to the “real economy.”

Insurance brokers Aon and Marsh & McLennan both said cryptocurrency insurance business has been good this year, despite the fact that the cost is too high for many companies in the space.

Marsh & McLennan created a 10-person team to service blockchain startups.

Aon has streamlined its standard insurance policy to hasten the underwriting process. The brokerage, which claims to account for half of the cryptocurrency insurance market, said some insurers have adjusted their general policies to offer cryptocurrency specific coverage.

Neither brokerage would name their insurer partners.

The brokerages also said that they are not familiar with any insurer having to pay any claims for crypto losses, despite all the reports about thefts and hacks.

Policies Vary

The coverages vary.

AIG said that after meeting with cryptocurrency trading platforms and custodians, the insurer has included crypto coverage in its standard policy forms, but it did not want to say how much business it has done in this area.

XL, for its part, said it has taken a careful approach to assessing risks and has analyzed the coverage on an individual case basis, but did not wish to give more details.

Chubb indicated it does not seek to offer coverage for crypto wallets or exchanges, and it did not wish to specify what types of crypto businesses it covers.

Lloyd’s of London this month released guidance on crypto coverage and instructed agents to exercise caution regarding cryptocurrencies.

Coinbase has coverage for a portion of its cryptocurrency holdings, including coverage for funds stored in hot wallets. The company disclosures do not indicate the amount that is covered for the deposits stored offline for security purposes.

Japan Leads

Coverage appears to be more available to companies in Japan.

Mitsui Sumitomo Insurance in Japan covers both internal and external risks, including employee theft, mistakes, unauthorized access. The insurer also provides security audits and does background checks for employees.

A transaction services provider, bitFlyer, offers coverage for payment transactions in Japan, covering merchants for gateway issues, mishaps and transaction delays to companies with POS systems. The coverage is offered through Mitsui Sumitomo Insurance.

Some Consider Self Insuring

Some crypto companies are exploring self insurance because of the high cost of available policies. In addition to the high cost, policies can take months to approve, and they include exclusions. A loss from service interruption might be covered while loss from theft is not. Some claim the exclusions render some policies useless.

Trustology, a London-based company that focuses on crypto custody services, is looking to protect accounts up to 85,000 pounds, which is standard coverage for a U.K. bank account, and is considering self insuring its customers’ funds.

Cryptalgo, which assists institutional traders with orders, is exploring self insuring on account of all the exclusions in some policies, according to company COO Hillik Nissani.

Also read: Cyberinsurance providers are coming for cryptocurrency exchanges

Insurers Face Questions

Insurers meanwhile face a number of questions as they expand into the cryptocurrency space.

Because cryptocurrency values fluctuate due to volatility, coverage can fall short of potential losss. Such a fate befell Circle Internet Financial, CEO Jeremy Allaire said.

To address this concern, insurance companies may need to insure based on value regardless of price. The fluctuations can result in major fluctuations in premiums that could prove unmanageable to both underwriters and their customers.

Phishing scams present another challenge. If such an attack causes cryptocurrency getting sent to the wrong wallet because the customer failed to check the SSL certificate to verify the identity of the server, is the insurance company liable for the loss?

Featured image from Shutterstock.

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Harassment Is a Real Issue for Cosplayers but Help Is at Hand


This is a submitted sponsored story. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the content below.

Harassment of cosplayers is a serious issue that needs to be tackled earnestly. “Cosplay is not consent” signs have been up since 2014 at the New York Comic Con (NYCC). However, harassment is not a problem of New York alone. Vice covered this topic in depth and one particularly glaring example from their report is about Malaysia based Kino Mikii who was approached online by an individual who called himself Michael Alex for a photography session. Vice reports, “But the photographer wasn’t all that interested in her costumes. Instead, he quickly shifted the conversation to sex toys before offering her SG $2,000 ($1,483 USD) for a private photo session and sex, writing “I want to taste your beautiful body.””

Could a situation like this have been avoided? Do cosplayers who depend on their art to earn an income stream necessarily have to put themselves in harms way of doing it? Cure Worldcosplay (CW) is an online platform for cosplayers and other stakeholders that is using emerging technologies like blockchain and smart contracts to not only provide a safe environment but also making it easier for players to monetise their work.

Verification can mitigate harassment in cosplay

Harassment is perhaps the most serious of problems that cosplayers face. While many platforms rely on Social Networking Services (SNS), this method can expose cosplayers to unwanted attention and does not solve the central issue of identity. However, using blockchain CW will put in place a system that would allow users and players to identify each other. It would also be possible to evaluate each other on the platform and player activity would be stored on the blockchain adding an element of tamper resistance.

Monetisation is the key

It is difficult at the moment for players to receive monetary compensation for their work because of two reasons. One is that most cosplayers do not have access to settlement accounts and find it difficult to charge for their products and services. This is also true for prop makers and photographers in the cosplay industry. Secondly,  many of individuals who participate in cosplay are relatively young and may not have credit or debit cards. This makes it difficult to carry out transactions. CW will usher in the Cosplay Token (COT), which would enable anyone, anywhere in the world irrespective of constraints like borders to make payments. COT would be purchasable and exchangeable with other cryptocurrencies. An opportunity that will open up for cosplayers to generate revenue would be content marketing. While there are constraints today related to copyright and revenue sharing, CW will use the power of blockchain to address this issue. Copyrights will be recorded on blockchain and revenue sharing will be implemented through smart contracts.

Adding value through exposure

Cosplayers work hard on their costumes and on their craft. Sometimes a lot of money is required to perfect a certain look. It is unfortunately the truth that for most players this does not result in any substantial return. This can lead to demotivation and some players are dejected enough to leave the industry early on. However, if early exposure and community support was provided, the outcome could be different. CW will connect both users and players and help players receive exposure. The multilingual platform that allows for publishing of content in 12 languages is truly global. The popularity of Cure WorldCosplay can be established from the popularity of the platforms SNS followers on Facebook and Twitter, which have more than 430,000 users. CW have managed to create a United Nations of Cosplay in a way and that means more opportunities for users who can now access information on events. Since information uploaded on the platform can be evaluated by other users, there will be an encouragement for users to post accurate and correct information.

Unlocking hidden potential, setting cosplay free

Cure WorldCosplay by taking the bull by the horns has been working to convert problems into opportunities. CW is already the leading platform for cosplayers from around the world in an industry that is growing at a CAGR of 15 percent each year and is approximately worth US$ 25-50 bln dollars. It has the potential to corner a large pool of these unchartered waters, simply by doing what has been left undone for long. They have recently released a whitepaper about their platform and their approach of using blockchain technology to mitigate cosplay problems. Soon Cure would be launching an initial coin offering (ICO) in which COT tokens would be sold to the public. This would provide investors with the opportunities lurking in the hitherto unexplored cosplay industry. A whitelisting page is available for users to sign up for the crowdsale. CW’s efforts will possibly have a twin effect, one of unlocking the potential that is in cosplay and the second of setting it free.

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XMAX – A New Vision for Blockchain Development


This is a paid-for submitted press release. CCN does not endorse, nor is responsible for any material included below and isn’t responsible for any damages or losses connected with any products or services mentioned in the press release. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the press release.

Not long ago, cryptocurrencies were believed to be a fringe concept better suited for convoluted and hyper-technical applications at best, and dark-web drug dealers and money launderers at worst. At the time of writing, crypto has broken ground as something that has evolved beyond a fad. It has even made its way into the certification exams as part of the Chartered Financial Analyst (CFA) Institute’s updated curriculum.

Coinbase, a popular cryptocurrency exchange, is now starting to acquire traditional finance companies and has opened channels of communication with government regulators. This signals that mass adoption of crypto has achieved a solid foothold and doors have been opened for our fascination with blockchain technology to soar to its full potential.

But how exactly will we reach those new heights? XMAX has the answer to that question.

With a Software Development Kit (SDK) based on the widely-used JavaScript language, XMAX seeks to establish itself as the development toolkit for the creation of decentralized applications (DApps) that will pave the way for blockchain technology to impact humanity in ways we may not have expected.

WebX.js is the name of the JavaScript programming language developed by the XMAX team to facilitate the creation of blockchain DApps. With XMAX, developers do not need to understand the underlying blockchain programming languages to produce entertainment applications. WebX.js will streamline the mass adoption of blockchain technology by making development more accessible. It is a quantum leap—a paradigm shift into the coming era.

Considering what many DApps will be programmed for, XMAX has systems and templates in place for video, music, web browsing, messaging, and even 3D game architecture. Programmers will be able to create video games that are tightly integrated with blockchain. How fascinating would it be to design a game system with decentralized smart contract technology? This opens a world of possibilities, not just for the sale of video games, but also for microtransactions within the game’s own platform. Further, imagine how difficult it would be to pirate software embedded in the immutable and distributed ledger of a blockchain!

The XMX Token

The XMAX Foundation plans to produce and distribute 30 billion XMX tokens. XMX is currently being traded on Huobi’s HADAX exchange and tokens at the time of writing are trading for approximately $0.002 USD.

Roadmap

2018 Q3

  • Build the base-layer infrastructure for the Galaxy Multichain Network.
  • Create the blockchain Packet System
  • Build the test network based on Ethereum.

2019 Q1

  • Create the Consensus Mechanism and Network.
  • Build a multiple node network.
  • Continue designing mainchain tools.
  • Build the 21-node testing framework. Support multiple platforms including Windows, MacOS, Linux, etc.

2018 Q4

  • Implement consensus mechanism based on VRF.
  • Develop JS virtual machine sandbox.
  • Create native system contracts.
  • Design account system.
  • Build a single node testing framework.

2019 Q2

  • Optimize the testing framework for 2,100 nodes.

Team

Alex Nikolaev

Alex is the founder of Forseti, an arbitration protocol for DApps, and co-founder of Hashlab.org a blockchain development firm. He is a blockchain enthusiast, passionate about mechanism design and cryptoeconomics. He has won numerous blockchain hackathons including Blockchain Hack 2016 (Waves 1st place) and Blockchain Hack 2017(Qtum 3rd place).

Hughes Ching

Hughes attended the University of Waterloo, and in 2014 he founded Jing He Capital, a TMT (Technology, Media, and Telecom) investment company focused on the gaming and entertainment industry. Hughes previously invested in UBER, ChangBa, the Wanda Group, and other successful entertainment industry projects. In recent years, he founded Consensus Capital, a digital currency investment fund, which has made early-stage investments in Elf, NBS, Seele, CNN, ABT and other blockchain projects.

Christopher Manzano

Chris is a builder for the developer community and specializes in user experience design for online economies. He has worked with some of the top game companies in Asia and believes that blockchain technology should be designed with simplicity in mind. His role is to empower developers and blockchain DApp users on the XMAX ecosystem through educational outreach.

Synopsis

XMAX could very well be the biggest thing to happen to blockchain since the Bitcoin whitepaper. If the XMAX team succeeds in their quest to turn WebX.js into the new standard for DApp development, XMAX will create new realities and build a path for the future of entertainment on the blockchain.

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A Cutting-Edge Multi-Cryptocurrency Hardware Crypto-Wallet from OraSaifu is About to Hit the Global Market


This is a paid-for submitted press release. CCN does not endorse, nor is responsible for any material included below and isn’t responsible for any damages or losses connected with any products or services mentioned in the press release. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the press release.

Bitcoin Press Release: Smart-tech company OraSaifu announces a revolutionary payment product; a hardware cryptocurrency wallet with a digital card screen display, packed with state-of-the-art security. It will enter the market in mid-July 2018.

July 20th, 2018, Tokyo, Japan  – The number of active blockchain wallet users today exceeds 26 million. In 2018 to date, Bitcoin wallet holders grew  to over 10 million. Furthermore, the daily trading volume of the top ten cryptocurrencies has risen to $3 Billion, and it’s about time a truly innovative cryptocurrency wallet enter the world.

All-in-One Digital Wallet with Cross Functional Payment Methods

OraSaifu has developed an all in one solution for those seeking a means to store their crypto without resorting to hardware, software or paper wallets. The OraSaifu wallet enhances all the present safety advantages of contemporary USB wallets like Ledger and Trezor, and also turns traditional bank payment cards into a mobile payment mode. For financial asset storage, transactions, and recovery, OraSaifu has created one card with two modes where all crypto digital currency exchange and bank card payment functions co-exist.

The Most Secure and Cutting Edge Wallet Hardware on the Market

What sets OraSaifu apart from any other wallet is its proprietary reliance on both a Trusted Execution Environment  (TEE) and SE technology on one secure chip, ensuring 100% security over assets and Near Field Communication (NFC) payments. OraSaifu provides a cold-wallet mode by using NFC and Offline QR code reading technology, which means it can be completely isolated from online connections. It also has unlimited storage, beating the majority of the competition that offer limited storage and single currency use.

In terms of security, all cryptocurrencies on the device are stored offline and require 2 step authentication for transactions, the USB port required to charge the device doesn’t have data transfer capabilities, thereby keeping private keys isolated from even your computer and reducing the risk of theft to near zero. Presently, OraSaifu supports the following digital currencies: Bitcoin, Ethereum, Litecoin, Zcash, Dash and over 20 other cryptocurrencies. It supports sending payments, receiving, checking account details and managing multiple addresses.

Unprecedented Artistic Design and Features

In addition to its ground-breaking security and functionalities, OraSaifu’s offers the sleekest design of any product in its class. With a diameter of a bank card, feather-like weight 4-inch bezeless display with an 83.37% screen to body ratio, beating out even the latest iPhone. Alongside the nifty asset storage and transaction features described above, the OraSaifu wallet also supports membership cards, business cards, door passes, Gym membership cards and so on. Everything is NFC enabled and OraSaifu can copy, store the data in one ultra-secure place.

Ora wallet also embedded the function of business cards, club membership cards management and door pass for user’s further exploration. Costo, Dicson, Walmart, Gym membership card, a work badge, a smart lock, anything NFC enabled, OraSaifu can copy it and store it, so users don’t have to go through millions of cards just to make through a door.

The OraSaifu hardware wallet is bound to exceed the expectation of most digital currency enthusiasts. It offers an artistic palm-sized interface, unlimited digital payment accessibility, and the highest of security features. Ultimately, the OraSaifu wallet will become a leader in the market for a reason: it is a product users trust with protecting their crypto and ushers in a new seamlessly efficient professional lifestyle.

About ORA

Ora Inc.was founded in 2013, with an ambitious concept to change the world of payments. Our R&D team members are former employees from Microsoft, IBM, Oracle, Nokia and Huawei, all with extensive experience in blockchain, big data, internet security, and mobile hardware fields. The UI design team is from Japan. OraSaifu has gained millions of USD first round angel investment, and is planning for its next round of fundraising from top global investors and institutions. Ora is actively building a connection with industry-leading blockchain technology parties and is looking forward to speaking with more potential business partners. Please contact us for more information.

Early Bird Sale

The OraSaifu smart wallet global launch will start on Indiegogo on July 19th, 2018, if interested in purchasing the OraSaifu wallet, the company has opened registrations for early bird sales here.