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What is a Stablecoin?

Cryptocurrencies have been wildly volatile. Speculators may profit or lose money trading the changes, but for those who want an online currency that maintains predictable value, the fluctuations are not as desirable.

Hence, a stablecoin is cryptocurrency that is pegged to a stable asset, whether gold or fiat currencies (such as the US dollar, British pound or Japanese yen) and is backed by a reserve which corresponds with the coins in circulation.

Theoretically, a stablecoin will remain relatively constant in price, as it is a representation of a known asset.

In other words, cryptocurrencies indexed to traditional fiat currencies have the aim of reducing volatility and increasing confidence.

However, this introduces its own controversy, since cryptocurrencies are by nature decentralized and not linked to governments or banks.  So although stablecoins could be popular in the short run, a decentralised currency that is stable and doesn’t have a central organization behind it will better represent the intent of cryptocurrencies in the long run.

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What Are Cryptocurrency Exchanges?

Cyptocurrency exchanges are platforms through which you can purchase or sell digital currencies for dollars, euros, and pounds, as well as other digital assets. For example, you can sell bitcoins and purchase dollars with the sold bitcoins, or you could exchange bitcoins for ether.

Cyptocurrency exchanges may be brick-and-mortar businesses, exchanging traditional payment methods and digital currencies, or strictly online businesses, exchanging electronically transferred money and digital currencies.

A number of cyptocurrency exchanges operate outside of Western countries, avoiding regulatory oversight and prosecution, but they often accept Western fiat currencies, sometimes maintaining bank accounts in several countries to facilitate deposits in various national currencies.

Some may accept credit card payments, wire transfers or other forms of payment in exchange for digital currencies or cryptocurrencies.

There are private exchanges, which are exclusive and operate by invite only, as well as those available for the public. Local exchanges also exist. Some are easier to use than others are.

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What is an ICO?

Investopdedia defines an ICO as: An unregulated means by which funds are raised for a new cryptocurrency venture. An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.

Furthermore, a supporting article states:

Although there are successful ICO transactions on record and ICOs are poised to be disruptive innovative tools in the digital era, investors are cautioned to be wary as some ICO or crowdsale campaigns are actually fraudulent. Because these fund-raising operatives are not regulated by financial authorities such as the Securities Exchange Commission (SEC), funds that are lost due to fraudulent initiatives may never be recovered.

The rapid ICO surge in 2017 incurred regulations from a series of governmental and nongovernmental In early September, 2017, the People’s Bank of China officially banned ICOs, citing it as disruptive to economic and financial stability. The central bank said tokens cannot be used as currency on the market and banks cannot offer services relating to ICOs. As a result, both Bitcoin and Ethereum tumbled, and it was viewed as a sign that regulations of cryptocurrencies are coming. The ban also penalizes offerings already completed. In early 2018, Facebook, Twitter, and Google all banned ICO advertisements.

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What is Cryptocurrency?

Cryptocurrency is derived from two words. Crypto is from Greek and means “hidden” or “secret.” Currency is from Middle English and means, “in circulation.” The crypto part refers to cryptography, which in this application means keeping the money private  and secure and for verification purposes.

So, on an elemental level, cryptocurrency means secure or private money. But there’s more to know. Continue reading “What is Cryptocurrency?”

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The Case Against Blockchain | Blockchain Decision Tree

In brief, at this stage of the game, blockchain isn’t for everyone. One key takeaway is that “ICO companies that invest in blockchain have a 98% failure rate.”

This is not intended to cast shade on its potential, but blockchain merits should be weighed carefully relative to your business interests. Smaller companies, in particular, are at risk. The cost of developing blockchain technology is high and the current performance levels, including the volume of transactions that can be processed per second, is low.

Following is a Blockchain Decision Tree for a more considered appreciation as well as options to consider a public, hybrid or private blockchain.

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What is a Cryptocurrency Wallet?

A cryptocurrency wallet is a digital software program used to receive, store and send digital currency, such as digital coins or tokens, for buying and selling or other monetary transfers. There are different types of wallets, with a hardware variant deemed the most secure. A wallet does not actually contain the currency itself, but contains security codes call “keys” which reference the money on a blockchain. In other words, wallet “storage” is really a way to prove ownership.

For more info, visit Cryptocurrency Wallet Guide: A Step-By-Step Tutorial

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Civil: A New Journalism Paradigm on Blockchain

Civil

Civil.co describes itself as “The Decentralized Marketplace for Sustainable Journalism.”

Its mission is “to help power sustainable journalism throughout the world.”

“We believe in a new approach that takes advertisers and other third-party interests out of the equation, enabling journalists and readers to connect directly and focus on telling impactful stories.”

An initial takeaway is that Civil is not a publisher; it’s a platform for publishers. More specifically, it’s a platform for independent “newsrooms” that agree to adhere to its constitution. “The Civil Constitution outlines what does — and does not — constitute ethical journalism on Civil.”

There is a series of checks and balances in place designed to foster ethical journalism.

In regards to blockchain and cryptocurrency, “Civil’s cryptoeconomic model seeks to enable a more direct, transparent relationship between journalists and citizens, while using blockchain to also strengthen protections for journalists against censorship and intellectual property violations.”

What’s particularly unique is that people can vote on whether any of its newsrooms violate Civil’s journalism standards as established by it constitution.

There’s also a “Civil Council” for appeals to controversies over veracity that may be driven by, among other factors, herd mentality.

Or, in other words, just because information is unpopular does not mean it can be relegated to irrelevance or obscurity.

All this sounds promising, as the world of journalism is in a tailspin in terms of economic viability and public respect.

At a minimum, new ideas are needed and Civil is certainly that.

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Cryptocurrency Security Issues

Having spent years in the software and data industry, I’m aware of how imperfect software is.  Heck, any casual user of software has likely had that realization.

Hence, it’s not much of a stretch to state that I don’t think we’ve seen the end of security vulnerabilities in cryptocurrencies.  And as highlighted in this article, Bitcoin Dev Finds Potentially Crippling Security Flaw In Bitcoin Cash, some issues are still being discovered in mid-2018 that are remarkably serious. Continue reading “Cryptocurrency Security Issues”

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