Ep. 226: Exploring Bitnation’s Pangea, ICO Self-Regulation Efforts, and Weaknesses of IOTA

The hosts explore Bitnation’s Pangea. Project Transparency launches ICO self-regulation effort. Hedge funds pump and dump ICOs. Closer look at IOTA’s weaknesses. Bitcoin Cash update from Darren. European central bank advises blockchain interoperability. Russia to educate citizens on cryptocurrencies and ICO risks. Musiconomi shares token locker smart contract. Finnish exchange LocalBitcoins sells BCH balances, credits users with BTC (why?).

We’ve written out short overviews of the topics discussed on today’s show below! Be sure to listen in to the whole podcast to get more information, insights, and thoughts on each of them from Darren, Pedro and JJ!

Stream this podcast episode:

or Direct Download this episode as an MP3 – Neocash Radio cryptocurrency podcast ep226

Tune in to Neocash Radio every Wednesday night and

Subscribe to the Neocash Radio podcast
on iTunes/ Soundcloud/ Stitcher/ YouTube/ Google Play & iHeartRadio!
We’re also on Tunein, Player.FM, Overcast.FM, Podcast Addict, Blubrry, LBRY and more!

Traditional Financial Markets Cryptocurrency Markets
Gold $1,274.90 Bitcoin (BTC) $4,219
Silver $16.58 Ethereum (ETH) $292
Oil $49.83 DASH $306
Dow Jones 22,660 points Litecoin (LTC) $51.11
30Y UST Yield 2.87% Bitcoin Cash (BCH) $361

Another Warning about IOTA and Potential Hazards

Ethereum developer Nick Johnson is the next person to speak out about IOTA. Neha Narula first pointed out the fact that IOTA has homemade cryptographic operations in its code, including one such operation that has glaring vulnerabilities. Now it appears that the developer put that there intentionally to protect the open source code! It sounds strange but it makes sense. No one would want to steal then run some poison code. Also given that the Proof-of-Work algorithm has a low, fixed difficulty, the chances of a 51% attack are dramatically higher than standard blockchains. In fact, the only thing stopping such an attack is a Coordinator node that keeps a list of valid transactions to be validated against. This central point of control is the antithesis of modern cryptos’ trustless nature.

Perhaps IOTA is intentionally weak due to the constraints of Internet-of-Things technology, perhaps they don’t care as much due to the millions, billions, of daily transactions the IoT sector could have. Perhaps the real code is not yet revealed to once again protect the ‘open source’ project. Whatever the reason, there is no way that IOTA should be valued as high as it is.

 Project Transparency Launches ICO Self-Regulation and Transparency Initiative

Sixteen blockchain projects have joined to launch Project Transparency an effort at industry-led self-regulation. Member projects will make funds collected during the ICO transparent by publishing the wallet addresses and any expenditure over 0.5% will be publicized with an explanation.

Ether Delta Hacker Steals Thousands of Dollars Worth of Cryptocurrency with a Classic Code Injection

A classic code injection has robbed the Ether Delta contract of thousands of dollars. Ether Delta was one useble contract that we could point to that showed the power of smart contracts. Now this successful phishing attempt has dampened the ethereum space with yet another example of a compromised contract. Be careful.

Crypto Hedge Funds Pump and Dump ICOs

It’s no secret that ICOs have become the flavor of the year but for some they are merely a chance to make a quick 200-300%. The event happens regularly: A token sale or ICO draws some level of attention and sells out quickly. As soon as the tokens hit exchanges the volume skyrockets. Those that missed out on the sale are quick to buy while those that managed to get some tokens during the ICO sell off their holdings for a quick turnaround.

Bitcoin Cash update from Darren

Bitcoin Cash has had some ups and downs. The price certainly is currently down, and the inconsistent hash rate seems to be a concern for Bitcoin Cash users. Several Emergency Difficulty Adjustments have happened since my last update. This wouldn’t be such an issue if the price of Bitcoin Cash was around parity with Bitcoin.  However these difficult adjustments have moved the expected halfing event up about one month compared to the Bitcoin/Segwit chain.

Bitcoin Cash developers have responded with a more dynamic difficulty algorithm. However, roll-out of this change would require a hard fork and some prepping time before such a change can be made live.

European Central Bank Advises Interoperability For Distributed Ledger Protocols

The European Central Bank has issued a 134-page report on how it may be possible to integrate distributed ledger technology with financial platforms.

The report, titled The Potential Impact of DLTs on Securities Post-Trading Harmonisation and on the Wider EU Financial Market Integration, was made to the ECB by the International Capital Market Association’s Advisory Group on Market Infrastructures for Securities and Collateral. Of its findings on interoperability, the report states:

“If DLT and non-DLT solutions are to coexist, interoperability between the two approaches needs to be ensured. There may be a need to provide ad hoc matching fields where a participant holds both a DLT and non-DLT account.”

In August of 2017, the Bank of England (BoE) issued a similar report studying DLT economics. Among other findings, the report highlighted a necessity for public authorities and regulatory agencies to facilitate cooperative efforts for researching DLT. Prior to that, in May of 2017, the BoE issued a document that classified DLT as an insufficient means for administering real-time gross settlements, citing a lack of maturity in the technology.

Russia To Educate Its Citizens On Cryptocurrency

Russian Finance Minister Anton Siluanov has announced that the Russian government will work to educate its citizens on cryptocurrency as part of a program geared toward increasing financial literacy in the country.

In a TV interview on the Rossiya 24 channel, Anton Siluanov stated that his government will work to educate the country’s masses on cryptocurrencies, particularly on the potential dangers associated with investing in them.

“We see here more risks than recommendations on investing into instruments of such kind. That is why an explanation of potential consequences of investments into unregulated and hardly predicted instruments will be an issue of financial literacy we will support,” he announced.

The news platform said that Prime Minister Dmitry Medvedev has already approved the program, which is slated to run from this year until 2023.

Musiconomi Shares an ERC20 Token Locker Smart Contract

Coming off of their successful token sale, Musiconomi was looking at tackling a problem. How could they lock up tokens in such a way as to prove they were locked up without giving up control? Sure, you could send them to an address, but what is stopping you from moving them or how do you prove they are locked up?

JJ has interviewed David Werba, the founder of Musiconomi, twice — most recently on Aug. 22. Check out that interview here.

Bitnation launches Pangea jurisdiction for creating nations on the blockchain

This autumn, Bitnation intends to reset society by initiating another tectonic shift with the launch of the Pangea Jurisdiction, and the Pangea Arbitration Token (PAT) Token Sale Event (TSE). Bitnation’s newest release of the Pangea Jurisdiction will be powered by PAT, an Ethereum (ERC20) token that serves as a proof-of-reputation for Citizens. It is distributed on Pangea when Citizens create a contract, successfully complete a contract, or resolve a dispute related to a contract. PAT is an algorithmic reputation token; an arbitration currency based on user and contract performance, rather than a purchasing power, popularity or attention.

This seems a little strange, It’s a token that conveys reputation, but these tokes can be bought and sold?  Are we missing something here?

Localbitcoins Sells Bitcoin Cash That Was Left on the Exchange and Compensates Users With Bitcoin

The Bitcoin exchange Localbitcoins is a business based in Helsinki, Finland, that offers a web portal for nearly every city worldwide where users can participate in over-the-counter Bitcoin trades. The company was founded in 2012 and has since been a favorite trading vehicle for Bitcoin proponents across the globe.

Since the hard fork that produced Bitcoin Cash, many individuals wondered if Localbitcoins would compensate people with BCH if they held Bitcoin there before August 1. Some even talked of threatening the company with a lawsuit because Localbitcoins didn’t mention a plan for after the fork. According to the company, BCH will not be supported by the organization, but they have sold the BCH balances and have credited users with BTC.

It’s hard to understand why any business would operate this way. Even though they appear to have tried to do right by their customers, they are still open to the charge that they didn’t get a good price for their Bitcoin Cash, etc.

NeoWare Apparel NeoWare Apparel aims to make fine crypto-themed clothing and accessories! Is there a certain coin or token you want to see designs for? Email neowareapparel@gmail.com

An Important Disclaimer

We would like to remind you that any content on the Neocash Radio podcast and/or website should not be regarded as financial or legal advice. Please be mindful of any and all regulations regarding cryptocurrency in your particular jurisdiction. Never invest/gamble more than you are willing to lose and always safeguard any digital currencies you own by keeping them in a wallet whose private keys you control.

Contact Us
JJ – jj@neocashradio.com
Co-Founder, Producer, Managing Director

Darren – Darren@neocashradio.com
Co-Founder, Technical Writer

Pedro – pedro@neocashradio.com
Ethereum and Crypto-mining Expert

Randy – randy@neocashradio.com
Former Co-host and Cool Dude

Tips Appreciated!

BTC Address: 1MmFwDeZPgxJ4GyzbfmZVLJv3aZcpxSfR5
ETH Address: 0xe4689EF88F239C6eed1Ff262876e2499495c1617
DASH Address: XtLEPo6DKeu45e2czdHLEb5EzJRVDz2aLZ
NXT Address: NXT-TT49-WV65-HZJA-5EJF9
BCH Address: 173ADKUvvRcSmb9tnKiYAMQAoB6RhsgQQd

Leave a Reply

Your email address will not be published. Required fields are marked *