DOCSLIB.ORG

Kryptoshare® SEND • SHARE • STORE the Future of Crypto

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Kryptoshare® SEND • SHARE • STORE the Future of Crypto CRYPTOCURRENCY PROBLEMS, LIMITATIONS, RISKS & SOLUTIONS PRESENT BY: ZACHARY MUTTER BARI HERSCKOWITZ KryptoShare® SEND • SHARE • STORE The Future of Crypto *Patent Pending What is Cryptocurrency? u Form of either decentralized or centralized electronic cash u Incorporates digital signatures that create one way irreversible transactions u Reliant on timestamp network creating hash-based proof of work; creating blockchain u Longer the blockchain; harder to manipulate and steal (double-spend) cryptocurrency u More computing power proofing blockchain the better u 1st successful cryptocurrency Bitcoin. Others tried like Ecash in the 90s but failed due to centralization problems. Current Problems with Crypto ▶ Senders/receivers of crypto currencies are restricted to being forced to know or have: ▶ QR code ▶ 32+ Public Key (aka address) ▶ Without this info NO transactions can transpire ▶ Personal details are absent from senders/receivers of cryptocurrency ▶ Around 7 bitcoin transactions are able to be processed every second vs visa with about 1,700 per second. *Patent Pending Current Limits of Crypto Currency & Services u Limitations are only one address per type of crypto-currency. u Users can only send Bitcoin to a “Bitcoin only” address u Currently you can only send to people or businesses’ addresses you know, which are subject to change u Transactions are very data poor u Transactions can take minutes to days depending on the respective network load u Minimal connectivity on social media for crypto-currency users *Patent Pending Example of Limitations ▶ This transaction shows little useful data ▶ The receiver doesn’t know who/what sent them cryptocurrency Current Status: “confirming/pending” this could last minutes or days *Patent Pending Bitcoin u Idea was developed by Satoshi Nakamoto u Users of Bitcoin never really own Bitcoin, they own a piece of the cryptocurrency in the network u To receive Bitcoin users must send their Public Key or QR code, which is subject to change, to sender u Sender transmits Bitcoin, sender’s private key signs transaction which is verified by the network of miners and a new block of data is added to the chain proving the transaction was authentic u Incentive for miners to maintain bitcoin blockchain is the payment of said cryptocurrency u Around the year 2140, the currency will reach it’s the max limit of 21 million bitcoins total The Value of FIAT Money u US dollar was tied to price of gold. u Bretton Woods Agreement setup rules relating the value of foreign goods and assets to the U.S dollar which was weighted against the assigned value of gold, $35/ounce u President Nixon ended the agreement as there was not enough gold to keep up with the supply of needed dollar u FIAT has zero value https://www.thebalance.com/what-is-the-history-of-the-gold-standard-3306136 The Value of Cryptocurrency u First value created with cryptocurrency was done so with Bitcoin in 2010 u Florida programmer paid 10,000 bitcoins to get two pizzas delivered from Papa John's. He paid a user in in England, who then called in the pizza order u Shortly thereafter a farmer in Massachusetts named David Forster began accepting bitcoins as payment for alpaca socks https://www.investopedia.com/news/bitcoin-pizza-day-celebrating-20-million-pizza-order/ Value Creation in Crypto Crypto vs Traditional Banking u According to the 2017 FDIC National Survey of Unbanked and Underbanked Households in the U.S approximately 20% of American households are underbanked u Growing number of both private banks and online fiduciary entities are closing customers accounts. u Chase bank and PayPal has closed numerous customers’ accounts due to what they claim are political bias Moving to Crypto u Unlike traditional banking, customers of cryptocurrency are required to provide much less personal information, depending on the cryptocurrency wallet’s conditions u Able to access cryptocurrency 24/7 u Transactions are irreversible u Many social media figures have attracted their followers to donate to them via cryptocurrency U.S. Banks & Bitcoin u US Bank, Bank of America, Chase and Citi Group have banned customers from buying Bitcoin u Visa and Mastercard re-classified buying Bitcoin as ‘cash advances’ instead of purchases and charge an extra 5% fee u Just saying Bitcoin in local bank will raise alarms with staff https://news.bitcoin.com/bank-america-becomes-latest-credit-card-issuer-ban-bitcoin/ Smart Contracts u ERC 720/721 (Ethereum Request for comment) u They contain unique pieces of data within the cryptocurrency; often a HTTP(S) link. Code Example: contract MyNFT { mapping(uint256 => string) tokenLinks; function tokenMetadata(uint256 _tokenId) constant returns (string infoUrl) { return tokenLinks[_tokenId]; } WHAT DO I NEED? The Bubble u Much like the dotcom bubble there are many interesting new cryptocoins whose value comes almost entirely from speculation and fueled by the hopes that these individual coins would be profitable one day u Many coins are tied to speculation only or pho-value for new businesses Crypto Fundraising Regulations Regarding ICO u The S.E.C deemed in 2018 that these coins could be regulated as securities. Up until this point companies treated the ‘coins’ as digital assets only meet to be redeemed at their business u Brian Quintenz one of the top U.S. Commodity Futures Trading Commission stated in a hearing March 2016 “As the markets for virtual currencies mature, the Commission, along with its fellow state, federal, and international regulators, should ensure a rational approach to regulatory oversight, not one based on fear or inexperience” (Aitken 2018). u CFTC Chairman Giancarlo stated, “the CFTC should not attempt to make value judgments about which new products are worthwhile and which are not - the markets, investors, and consumers need to decide that for themselves” (Aitken 2018). Regulations continued u The CFTC has designated bitcoin as a commodity u IRS says bitcoin must be treated as property for tax purposes. That means a capital gain or loss should be recorded as if it were an exchange involving property. If it is used as payment, it should be treated like currency, but must be converted, and its fair market value checked on an exchange. u FinCEN’s Guidance FIN-2013-G001 declared that “virtual currency does not have legal tender status in any jurisdiction.” https://www.marketwatch.com/story/heres-how-the-us-and-the-world-are-regulating-bitcoin-and-cryptocurrency-2017-12-18 Have You Seen These Coins? Limits and Pitfalls of Cryptocurrency u The ability to track cryptocurrency has lead to sellers of BTC being arrested for what buyers of crypto do with it once they buy it. u Ex: BitInstant was legitimate company that sold BTC. A few customers used their purchases on SilkRoad. Charlie Shrem was sent to jail. u A user sent and obtained BTC for ISIS u High-jacking payments received in BTC only u Sellers are often charged with not being licensed as money transmitters with the Financial Crimes Enforcement Network https://www.ccn.com/charlie-shrem-bitinstant-ceo-bitcoin-foundation- vice-chairman-arrested-new-york https://www.cnbc.com/2018/11/26/new-york-woman-pleads-guilty- to-using-bitcoin-to-launder-money-for-isis.html Crypto vs Regulators u Coinbase had a lengthy and expensive battle between regulators. u Coinbase finally agreed to reveal the data of 13,000 customers , out of 21 million, as a plea to end the fight. u Coinbase is #1 most downloaded finance app of all time and in the past was the most downloaded app. u Coinbase also faced fraud lawsuit with Bitcoin cash, launched on their platform Dec 2017, trading at $3,160 today is $400.00 https://www.newsbtc.com/2018/07/10/coinbase-app-downloads-have-dropped-but-interest-in-cryptos-isnt-waning/ Insurance Limitations u There is NO third-party insurance to cover any loss that may be suffered with respect to the Trust’s bitcoins u There is currently no clearing house for bitcoin, nor is there a central or major depository for the custody of bitcoin. u Bitcoin transactions are irreversible. Stolen or incorrectly transferred bitcoin may be irretrievable. https://www.sec.gov/Archives/edgar/data/1588489/000119312517013693/d157414ds1.htm Safely Storing Cryptocurrency Ø High quality safe storage Ø Cold storage refers to holding digital assets on a secure device offline. For a transaction to be complete the private key has to confirm the transfer. This is often a necessary security precaution, especially dealing with large amounts of crypto. Ø MtGox collapse is still being felt today as large amounts of crypto are liquidated Ø NiceHash hack stole millions of dollars worth of cryptocurrency *Patent Pending *Patent Pending Requests Statement Page *Patent Pending KryptoShare’s Data Rich Statements After successfully creating a transaction the user can INSTANTLY: Ø See the wallet the crypto currency came from (sender) and went to (receiver) Ø Know when the transaction was created, time stamped Ø Know type of crypto-currency being sent/received & amount Ø Sender will have ability for the sender to make this transaction public/private Ø Transaction Details—See example below taken from KryptoShare’s Statement Page *Patent Pending KryptoShare Platform Solutions for the Crypto Industry u No need to memorize/copy/paste 32+address or have QR codes! u KryptoShare users can send/receive crypto currency with a unique user-name. Multiple crypto currency can go to that ONE KryptoShare username. u A data rich transaction is instantly created for both senders and receivers of any integrated crypto-currency. Before the network confirms in the respective blockchain, KryptoShare already creates the transaction. Send Ethereum, Litecoin and Bitcoin all to one simple user name and easily keep track of every transaction.
Load more

Recommended publications
  • Enforcement Trends in Cryptocurrency
    Latham & Watkins Financial Institutions Group & White Collar December 9, 2015 | Number 1904 Defense & Investigations Practice Enforcement Trends in Cryptocurrency Cryptocurrency is on the rise...and so are enforcement actions. In less than a decade, cyptocurrencies have grown from a novelty reserved for those dealing in the illicit into a robust platform embraced by financial institutions and businesses alike. Wall Street and strategic investors have increasingly taken note, working to adapt their technology, streamline market trading and integrate cryptocurrency into everyday financial transactions. The rapid adoption of cryptocurrencies has also led to increased government enforcement activity. These actions evidence US regulators’ appetite to investigate fraud and other violations linked to cryptocurrency — often using traditional laws and regulations. Given this increased government scrutiny, financial institutions and traders should understand how regulators have policed the virtual world in the past in order to be prepared for the future. Government Enforcement Actions in the Cryptocurrency Space Unsurprisingly, government regulators, including the Securities and Exchange Commission (SEC), the Department of Justice (DOJ), the Commodities Futures Trading Commission (CFTC), the Federal Trade Commission (FTC) and the Financial Crimes Enforcement Network (FinCEN), have become increasingly active in policing the cryptocurrency space. The below enforcement actions provide a bird’s-eye view of how the enforcement framework for cryptocurrencies
    [Show full text]
  • Creation and Resilience of Decentralized Brands: Bitcoin & The
    Creation and Resilience of Decentralized Brands: Bitcoin & the Blockchain Syeda Mariam Humayun A dissertation submitted to the Faculty of Graduate Studies in partial fulfillment of the requirements for the degree of Doctor of Philosophy Graduate Program in Administration Schulich School of Business York University Toronto, Ontario March 2019 © Syeda Mariam Humayun 2019 Abstract: This dissertation is based on a longitudinal ethnographic and netnographic study of the Bitcoin and broader Blockchain community. The data is drawn from 38 in-depth interviews and 200+ informal interviews, plus archival news media sources, netnography, and participant observation conducted in multiple cities: Toronto, Amsterdam, Berlin, Miami, New York, Prague, San Francisco, Cancun, Boston/Cambridge, and Tokyo. Participation at Bitcoin/Blockchain conferences included: Consensus Conference New York, North American Bitcoin Conference, Satoshi Roundtable Cancun, MIT Business of Blockchain, and Scaling Bitcoin Tokyo. The research fieldwork was conducted between 2014-2018. The dissertation is structured as three papers: - “Satoshi is Dead. Long Live Satoshi.” The Curious Case of Bitcoin: This paper focuses on the myth of anonymity and how by remaining anonymous, Satoshi Nakamoto, was able to leave his creation open to widespread adoption. - Tracing the United Nodes of Bitcoin: This paper examines the intersection of religiosity, technology, and money in the Bitcoin community. - Our Brand Is Crisis: Creation and Resilience of Decentralized Brands – Bitcoin & the Blockchain: Drawing on ecological resilience framework as a conceptual metaphor this paper maps how various stabilizing and destabilizing forces in the Bitcoin ecosystem helped in the evolution of a decentralized brand and promulgated more mainstreaming of the Bitcoin brand. ii Dedication: To my younger brother, Umer.
    [Show full text]
  • A Solution Towards Eliminating Transaction Malleability in Bitcoin
    J Inf Process Syst, Vol.14, No.4, pp.837~850, August 2018 ISSN 1976-913X (Print) https://doi.org/10.3745/JIPS.03.0101 ISSN 2092-805X (Electronic) A Solution towards Eliminating Transaction Malleability in Bitcoin Ubaidullah Rajput*, Fizza Abbas*, and Heekuck Oh** Abstract Bitcoin is a decentralized crypto-currency, which is based on the peer-to-peer network, and was introduced by Satoshi Nakamoto in 2008. Bitcoin transactions are written by using a scripting language. The hash value of a transaction’s script is used to identify the transaction over the network. In February 2014, a Bitcoin exchange company, Mt. Gox, claimed that they had lost hundreds of millions US dollars worth of Bitcoins in an attack known as transaction malleability. Although known about since 2011, this was the first known attack that resulted in a company loosing multi-millions of US dollars in Bitcoins. Our reason for writing this paper is to understand Bitcoin transaction malleability and to propose an efficient solution. Our solution is a softfork (i.e., it can be gradually implemented). Towards the end of the paper we present a detailed analysis of our scheme with respect to various transaction malleability-based attack scenarios to show that our simple solution can prevent future incidents involving transaction malleability from occurring. We compare our scheme with existing approaches and present an analysis regarding the computational cost and storage requirements of our proposed solution, which shows the feasibility of our proposed scheme. Keywords Crypto-currency, Bitcoin, Transaction Malleability 1. Introduction After its introduction in 2008 by Satoshi Nakamoto, the Bitcoin crypto-currency has gained significant popularity amongst other various crypto-currencies.
    [Show full text]
  • Geraszimov-Doktrína – Egy Másik Megvilágításban
    KATONAI NEMZETBIZTONSÁGI SZOLGÁLAT XVI. évfolyam 3–4. szám FELDERÍTŐ SZEMLE ALAPÍTVA: 2002 BUDAPEST 2017 A Katonai Nemzetbiztonsági Szolgálat tudományos-szakmai folyóirata Felelős kiadó Kovács József altábornagy, főigazgató Szerkesztőbizottság Elnök: Dr. Béres János vezérőrnagy Tagok: Dezső Sándor vezérőrnagy Dr. Magyar István ny. dandártábornok Dr. Tömösváry Zsigmond ny. dandártábornok Deák Anita alezredes Dr. Fürjes János alezredes Háry Szabolcs ezredes Dr. Magyar Sándor ezredes Dr. Tóth Sándor alezredes Dr. Vida Csaba alezredes Felelős szerkesztő: Deák Anita alezredes Olvasószerkesztő: Gál Csaba ny. ezredes Tördelőszerkesztő: Tóth Krisztina tzls. HU ISSN 1588-242X TARTALOM BIZTONSÁGPOLITIKA HOLECZ JÓZSEF ALEZREDES A GERASZIMOV-DOKTRÍNA – EGY MÁSIK MEGVILÁGÍTÁSBAN ...................................................... 5 BERTALAN DÁVID OGY. ALEZREDES A BIZTONSÁGI SZEKTOR SPECIÁLIS VONÁSAI .......................... 28 MEZŐ ANDRÁS ALEZREDES A DOKTRÍNAFEJLESZTÉS NEMZETKÖZI TAPASZTALATAI ... 45 HEGYI ÁGNES SZÁZADOS TERRORIZMUS A SZÁHEL-ÖVEZETBEN ....................................... 74 DR. GERENCSÉR ÁRPÁD KÖZÉP-ÁZSIAI SZÉLSŐSÉGES MOZGALMAK MEGJELENÉSI FORMÁI ÉS JELENTŐSÉGE .................................. 87 HÍRSZERZÉS – FELDERÍTÉS KOÓS GÁBOR NY. ALEZREDES – PROF. DR. SZTERNÁK GYÖRGY NY. EZREDES A FEGYVERES KÜZDELEM JELLEMZŐI KUTATÁSÁNAK FONTOSSÁGA, A HÍRSZERZÉS ÉS A FELDERÍTÉS JELENTŐSÉGE ..................... 97 DR. VIDA CSABA ALEZREDES AZ ELEMZŐ-ÉRTÉKELŐ MUNKA TERMÉKEI – NEMZETBIZTONSÁGI TÁJÉKOZTATÓK KÉSZÍTÉSE .............. 112
    [Show full text]
  • Bitcoin and Money Laundering: Mining for an Effective Solution
    Indiana Law Journal Volume 89 Issue 1 Article 13 Winter 2014 Bitcoin and Money Laundering: Mining for an Effective Solution Danton Bryans Indiana University Maurer School of Law, [email protected] Follow this and additional works at: https://www.repository.law.indiana.edu/ilj Part of the Internet Law Commons, and the Law and Economics Commons Recommended Citation Bryans, Danton (2014) "Bitcoin and Money Laundering: Mining for an Effective Solution," Indiana Law Journal: Vol. 89 : Iss. 1 , Article 13. Available at: https://www.repository.law.indiana.edu/ilj/vol89/iss1/13 This Note is brought to you for free and open access by the Law School Journals at Digital Repository @ Maurer Law. It has been accepted for inclusion in Indiana Law Journal by an authorized editor of Digital Repository @ Maurer Law. For more information, please contact [email protected]. Bitcoin and Money Laundering: Mining for an Effective Solution * DANTON BRYANS INTRODUCTION Technology forges ahead at a rapid pace, whether we like it or not. Criminals recognize this inevitability and use technological improvements to advance their craft,1 committing crimes from half a world away in real time. Meticulous criminals also use technological advancements to distance themselves from their illegal activities and profits through use of virtual banking and electronic money transfer systems, which allow criminals to buy, sell, and exchange goods without any physical interaction. Though such services use digital logs that serve to identify a sender and a receiver’s digital identities, criminals possess the means to obfuscate their digital identity by simply spoofing their Internet Protocol address or by using another individual’s account, essentially making their activities untraceable.
    [Show full text]
  • A Bitcoin Governance Network: the Multi-Stakeholder Solution to the Challenges of Cryptocurrency
    A BITCOIN GOVERNANCE NETWORK: The Multi-stakeholder Solution to the Challenges of Cryptocurrency Alex Tapscott Director, Institutional Equity Sales Canaccord Genuity Cryptocurrencies are products of the digital revolution and the networked age. As distributed networks with no central issuer and no central command, they are also a distinctly global phenomenon that will force national governments to not only re-evaluate a number of substantive regulatory issues but perhaps also re-think the very nature of governance itself. Cryptocurrencies are wresting control over many issues from traditional decision-makers. Multi-stakeholder governance, founded on principles of transparency and inclusiveness and legitimized by consensus, is the 21st century solution. When leaders of the old paradigm adapt and collaborate more closely with private enterprise, civil society organizations and other stakeholders in the network, then bitcoin and other cryptocurrency technologies can fulfill their potential and gain widespread adoption. © Global Solution Networks 2014 A Bitcoin Governance Network: The Multi-stakeholder Solution to the Challenges of Cryptocurrency i Table of Contents Idea in Brief 1 The Challenge for Governments 2 How Cryptocurrencies Work 4 Bitcoin Volatility and Price 5 Opportunities and Challenges 6 Opportunities 6 Challenges 11 A Bitcoin Governance Network 13 GSN Types for a Bitcoin Governance Network 16 Standards Networks 16 Policy Networks 18 Knowledge Networks 19 Watchdog Networks 20 The GSN Approach: Core Principles, Conclusions and
    [Show full text]
  • Cryptocurrency and the Blockchain: Technical Overview and Potential Impact on Commercial Child Sexual Exploitation
    Cryptocurrency and the BlockChain: Technical Overview and Potential Impact on Commercial Child Sexual Exploitation Prepared for the Financial Coalition Against Child Pornography (FCACP) and the International Centre for Missing & Exploited Children (ICMEC) by Eric Olson and Jonathan Tomek, May 2017 Foreword The International Centre for Missing & Exploited Children (ICMEC) advocates, trains and collaborates to eradicate child abduction, sexual abuse and exploitation around the globe. Collaboration – one of the pillars of our work – is uniquely demonstrated by the Financial Coalition Against Child Pornography (FCACP), which was launched in 2006 by ICMEC and the National Center for Missing & Exploited Children. The FCACP was created when it became evident that people were using their credit cards to buy images of children being sexually abused online. Working alongside law enforcement, the FCACP followed the money to disrupt the economics of the child pornography business, resulting in the virtual elimination of the use of credit cards in the United States for the purchase of child sexual abuse content online. And while that is a stunning accomplishment, ICMEC and the FCACP are mindful of the need to stay vigilant and continue to fight those who seek to profit from the sexual exploitation of children. It is with this in mind that we sought to research cryptocurrencies and the role they play in commercial sexual exploitation of children. This paper examines several cryptocurrencies, including Bitcoin, and the Blockchain architecture that supports them. It provides a summary of the underground and illicit uses of the currencies, as well as the ramifications for law enforcement and industry. ICMEC is extremely grateful to the authors of this paper – Eric Olson and Jonathan Tomek of LookingGlass Cyber Solutions.
    [Show full text]
  • Bitcoin Financial Regulation: Securities, Derivatives, Prediction Markets, and Gambling Jerry Brito [email protected]
    digitalcommons.nyls.edu Faculty Scholarship Articles & Chapters 2014 Bitcoin Financial Regulation: Securities, Derivatives, Prediction Markets, and Gambling Jerry Brito [email protected] Houman B. Shadab New York Law School Andrea Castillo Follow this and additional works at: http://digitalcommons.nyls.edu/fac_articles_chapters Part of the Banking and Finance Law Commons, Business Organizations Law Commons, Commercial Law Commons, and the Consumer Protection Law Commons Recommended Citation 16 Colum. Sci. & Tech. L. Rev. 144 (2014-2015) This Article is brought to you for free and open access by the Faculty Scholarship at DigitalCommons@NYLS. It has been accepted for inclusion in Articles & Chapters by an authorized administrator of DigitalCommons@NYLS. 144 COLUM. SCI. & TECH. L. REV [Vol. XVI THE COLUMBIA SCIENCE & TECHNOLOGY LAW REVIEW VOL. XVI STLR.ORG FALL 2014 ARTICLE BITCoIN FINANCIAL REGULATION: SECURITIES, DERIVATIVES, PREDICTION MARKETS, AND GAMBLINGt Jerry Brito*, Houman Shadab,** and Andrea Castillo*** The next major wave of Bitcoin regulation will likely be aimed at financial instruments, including securities and derivatives, as well as prediction markets and even gambling. While there are many easily reglated intermediaries when it comes to traditional securities and derivatives, emerging bitcoin- denominated instruments rely much less on traditional intermediaries such as banks and securities exchanges. Additionally, the block chain technology that Bitcoin introducedfor thefirst time makes completely decentralized markets and exchanges possible, thus eliminating the need for intermediaries in complex financial transactions. In this Article we surey the type of financial instruments and transactions that will most likely be of interest to regulators, including traditional securities and derivatives, new bitcoin-denominatedinstruments, and completely decentralized markets and exchanges.
    [Show full text]
  • Bitcoin and Block Chain Currency
    Bitcoin Currency & Blockchain Technology April 27, 2018 Stephen Burns, CFA Vice President, Portfolio Manager Endowment and Foundation Investments Glenmede 215-419-6958 [email protected] “How seriously should we take this [Blockchain]? I would take it as seriously as we should have taken the concept of the Internet in the 1990s.” — Blythe Masters, DAH http://bit.ly/1JENgb4 2 HISTORY OF BITCOIN & BLOCKCHAIN Satoshi Nakamoto (whoever he or she is) made a significant contribution to the field of computer science by introducing the Bitcoin concept in 2007 August 18, 2008 October 31, February 2010 2007 Concept Bitcoin.org January 3, 2009 2008 First of Bitcoin registered Genesis Block “Nakamoto” cryptocurrency “Satoshi through the first block is publishes White exchange was Nakamoto” anonymous mined Paper created speech.com 3 WHAT IS BITCOIN? Bitcoin: a form of digital currency created and held electronically produced (“mined”) by people, and businesses, running computers all around the world, using software that solves mathematical algorithms first example of a growing category of money known as cryptocurrency Bitcoin Mining Rig 4 BITCOIN: DEFINING CHARACTERISTICS Decentralized Fast & Easy • One central authority cannot manipulate • A bitcoin address can be set up in monetary policy. seconds, no questions asked, and with no • Machine mine bitcoin and process fees payable. transactions, making a network • Payments are processed in real time Anonymous Transparent • Users can hold multiple bitcoin addresses, • Bitcoin stores details of every transaction and there is no link to names, addresses, or that ever happened in the network in the other personally identifying information. blockchain. Non-Repudiable Low Fees • After sending your bitcoins, there’s no • No transaction fees getting them back, unless the recipient • Minimal conversion fees returns them to you.
    [Show full text]
  • How Money Got Free
    HOW MONEY GOT FREE BITCOIN AND THE FIGHT FOR THE FUTURE OF FINANCE BRIAN PATRICK EHA Oneworld: Bitcoin has only been around for OW: Over the past several years, you’ve spoken eight years or so. Why is now the right time to do at length with many of the major players in the a deep dive into the history and implications of Bitcoin space: Roger Ver, Charlie Shrem, Nic Cary what some have called not only the money of the and Barry Silbert, to name a few who are profiled Internet but “the Internet of money”? in your book. Whose story resonates with you the most? Brian Eha: While the ultimate fate of Bitcoin is anyone’s guess, we’re well past the point where BE: Charlie’s story resonates with me, because he we know the technology is good for something—it was just a young middle-class guy living with his has been praised by Bill Gates, Ben Bernanke parents in Brooklyn before he discovered Bitcoin. and former Treasury secretary Larry Summers, He co-founded one of the major early Bitcoin among others—so it makes sense to look back at startups, the first to receive serious venture capital its origins and take stock of how we got here. On funding. Of all the major players in those days, he a human level, the story of those who risked their was perhaps the one most gratified by the atten- money, time and freedom to build the foundations tion and most eager for the publicity, fame and of a new economy is fascinating.
    [Show full text]
  • Bitcoin and the Uniform Commercial Code Jeanne L
    University of Miami Law School Institutional Repository University of Miami Business Law Review 6-1-2016 Bitcoin and the Uniform Commercial Code Jeanne L. Schroeder Follow this and additional works at: http://repository.law.miami.edu/umblr Part of the Banking and Finance Law Commons, and the Commercial Law Commons Recommended Citation Jeanne L. Schroeder, Bitcoin and the Uniform Commercial Code, 24 U. Miami Bus. L. Rev. 1 (2016) Available at: http://repository.law.miami.edu/umblr/vol24/iss3/3 This Article is brought to you for free and open access by Institutional Repository. It has been accepted for inclusion in University of Miami Business Law Review by an authorized administrator of Institutional Repository. For more information, please contact [email protected]. Bitcoin and the Uniform Commercial Code Jeanne L. Schroeder* Much of the discussion of bitcoin in the popular press has concentrated on its status as a currency. Putting aside a vocal minority of radical libertarians and anarchists, however, many bitcoin enthusiasts are concentrating on how its underlying technology – the blockchain – can be put to use for wide variety of uses. For example, economists at the Fed and other central banks have suggested that they should encourage the evolution of bitcoin’s blockchain protocol which might allow financial transactions to clear much efficiently than under our current systems. As such, it also holds out the possibility of becoming that holy grail of commerce – a payment system that would eliminate or minimize the roles of third party intermediaries. In addition, the NASDAQ and a number of issuers are experimenting with using the blockchain to record the issuing and trading of investments securities.
    [Show full text]
  • Bitcoin Governance As a Decentralized Financial Market Infrastructure
    Bitcoin Governance as a Decentralized Financial Market Infrastructure Hossein Nabilou Abstract Bitcoin is the oldest and most widely established cryptocurrency network with the highest market capitalization among all cryptocurrencies. Although bitcoin (with lowercase b) is increasingly viewed as a digital asset belonging to a new asset class, the Bitcoin network (with uppercase B) is a decentralized financial market infrastructure (dFMI) that clears and settles transactions in its native asset without relying on the conventional financial market infrastructures (FMIs). To be a reliable asset class as well as a dFMI, however, Bitcoin needs to have robust governance arrangements; whether such arrangements are built into the protocol (i.e., on-chain governance mechanisms) or relegated to the participants in the Bitcoin network (i.e., off-chain governance mechanisms), or are composed of a combination of both mechanisms (i.e., a hybrid form of governance). This paper studies Bitcoin governance with a focus on its alleged shortcomings. In so doing, after defining Bitcoin governance and its objectives, the paper puts forward an idiosyncratic governance model whose main objective is to preserve and maximize the main value proposition of Bitcoin, i.e., its censorship- resistant property, which allows participants to transact in an environment with minimum social trust. Therefore, Bitcoin governance, including the processes through which Bitcoin governance crises have been resolved and the standards against which the Bitcoin Improvement Proposals (BIPs) are examined, should be analyzed in light of the prevailing narrative of Bitcoin as a censorship-resistant store of value and payment infrastructure. Within such a special governance model, this paper seeks to identify the potential shortcomings in Bitcoin governance by reference to the major governance crises that posed serious threats to Bitcoin in the last decade.
    [Show full text]