THIS POST IS CONTINUED FROM PART 13, BELOW---
Let us hear what INTEL tells about their own achievements in their whitepaper ( extracts ) …
Info about block chain I have already covered and hence is a mere repeat.
Intel has developed the Sawtooth Lake Distributed Ledger Platform (SLDLP), that is targeted at building, deploying, and running distributed ledgers.
A distributed ledger can be thought of as a secure database that is implemented among a group of participants without a central authority or administration.
Participants in the ledger can submit transactions to add, remove or modify records in the database according to a set of rules that are guaranteed to be enforced by the ledger (for example, the ledger may ensure that you can’t spend money that you don’t have).
A blockchain is an immutable series of transactions that is shared by all participants in the ledger. Cryptographic signatures ensure correctness and guarantee “non-repudiation” (that is, that once a transaction is committed to the blockchain, it cannot be un-committed).
Distributed consensus algorithms ensure that all participants see the same series of transactions even if bad actors try to compromise the system. The most unique characteristic of a blockchain is that it can provide these capabilities without a central organization to provide authorization or administration.
The blockchain method got its name from the way it builds historical transactions: records of transactions are collected in blocks that are time/date stamped and chained together in chronological order.
A new transaction is appended with a timestamp as a new block to the back of the current blockchain. Each valid block in a blockchain contains a reference to the previous valid block, and this creates a chain of blocks that captures the history of a transaction.
Blockchain is a machine for creating trust: the blockchain allows a group of users who have no particular confidence in each other to collaborate without having to go through a neutral central authority.
Distributed ledgers based on blockchain technology present several advantages over current record handling methods that rely on a centralized database: 1) Central intermediaries are removed from the transaction, 2) Connections between counterparts are simplified because the data resides at every participant, and 3) Data is recorded on a tamper-proof and secure block chain.
Participants in a blockchain event each have their own copy of the stored data in what can be considered a secure, distributed, shared database. Changes to the data are validated by participants collectively, and updated across the network almost immediately.
There are three common types of distributed ledger in use: public (or open) ledgers, private (or permissioned) ledgers, and consortium ledgers. The main distinction among the types is who has access to the database.
Advantages of blockchain and distributed ledger technology are:--
• Convergence on a consensus for changes applied to the data
• Decentralized data and authority
• Non-repudiation of data (digitally signed information)
• Full replication of data (distribution of encrypted storage)
• Distribution of trust (fully auditable)
Disadvantages of blockchain and distributed ledger technology are:--
• Inefficient method for data transfer
• No service level agreement (needed for Enterprise applications)
• Many unanswered questions: validation, scalability, transaction complexity, number of participants, viability of privacy
The Intel Sawtooth Lake Distributed Ledger Platform (SLDLP) is a modular prototyping platform that is targeted at building, deploying, and running distributed ledgers. The Intel SLDLP consists of an SGXenabled SDK platform, an SGX distributed ledger toolkit (white boxes), and the distributed ledger
The SGX technology (integrated into Skylake) provides an add-on SGX DLT Toolkit to facilitate and streamline operations in eight areas of the distributed ledger environment.
• Secure Wallets: Secure management for credentials used to interact with the ledger
• Secure I/O: Secure path for information to ensure the integrity of information triggering smart contracts (technology that is in development)
• PoET: An algorithm that uses Intel’s Software Guard Extensions (SGX) to establish a globally consistent view of the ledger
• Sawtooth Lake: Intel’s platform for building distributed ledgers
• Secure Containers: Secure execution containers (technology that is in development)
• 3D XPoint™ Memory: Intel’s large scale persistent memory
• SGX: Intel’s Software Guard Extensions, an enclave that protects code and data from exposure and modification
• Crypto Accelerators: AES-NI and other accelerators that improve the performance of cryptographic algorithms
The SLDLP uses a Nakamoto-style consensus algorithm called Proof of Elapsed Time (PoET).
As a proof algorithm, PoET uses a lottery for leader election that is based on a guaranteed wait-time provided through a trusted execution environment.
For the purpose of achieving distributed consensus efficiently, this lottery function provides several characteristics:--
• Fairness: The function should distribute leader election across the broadest possible population of participants.
• Investment: The cost of controlling the leader election process should be proportional to the value gained from it.
• Verification: It should be relatively simple for all participants to verify that the leader was legitimately selected.
Blockchain provides mechanisms to:--
• Ensure that the contents of the records have not been changed ( as hash generated would be unique to the document contents)
• Provide an audit trail by adding timestamp to the records
• Restrict access to authorized users
• Enable attribution that encourages individual participation in large-scale projects
November 20, 2017 at 4:22 PM
SBI blockchain rollout December
INDIA IS BEING USED AS A GUINEA PIG IN FINANCE
WE KNOW HOW BHARATMATA PAID THE PRICE FOR THE KOSHER" GREEN REVOLUTION " , THE KOSHER "WHITE REVOLUTION " AND KOSHER " EVIL PHARMA INDIANS AS GUINEA PIGS REVOLUTION "
WHAT THE FUCK IS HAPPENING ?
Capt. Ajit Vadakayil
November 20, 2017 at 5:26 PM
This is TOTALLY reliant on Intel’s Software Guard Extensions(SGX) .
SO STATE BANK OF INDIA ( READ AS FINANCE MINISTRY RUN BY A LAWYER NAMED ARUN JAITLEY ) WANTS TO OPEN INDIAs BOTTOMS WIDE TO INTEL , RIGHT ?
PoET doesn't make sense for either private or public blockchains. ..
It's way too easy to create multiple layers of obfuscation that ultimately don't contribute to the underlying security model...
WE THE PEOPLE ASK ASK -- WHAT IS THE VESTED AGENDA ?
WHO IS CONDUCTING THIS CONTROLLED "SWAYAMVAR " SHADI BETWEEN BHARATMATA AND KOSHER INTEL ?
ARE WE DIVING OFF THE DEEP END ?
IS THIS SYSTEM TRIED AND TESTED? WHERE IS THE PROOF?
IS THIS WHY MODI AND JAITLEY HAVE MERGED ALL INDIAN BANKS TO HOCK OUR NATIONs FINANCES AND FUTURE TO INTEL ?
WE WATCH--SOME PEOPLE WILL SOON GO TO JAIL FOR OFFENCES A MILLION TIMES WORSE WORSE THAN THE ENRON SCAM.
PUT THIS CRITICAL COMMENT IN THE WEBSITE OF ARUN JAITLEY, SBI CHAIRMAN , FINANCE MINISTRY, PMO, PM MODI, CJI, LAW MINISTER, HOME MINISTER, SWAMY , GURUMURTHY
capt ajit vadakayil
SBI is constrained to use Intel hardware like SGX to execute code in a protected area that can't be inspected or tampered with.
Intel came up with a consensus algorithm which may find its way to cryptocurrency at some point in the future. This concept is known as Proof of Elapsed Time
Intel is exploring this distributed consensus model as part of their Sawtooth project.
Hyperledger Sawtooth is an enterprise distributed ledger (aka blockchain) project.
In Sawtooth, the data model and transaction language are implemented in a transaction family.
Consensus is the process of building agreement among a group of mutually distrusting participants. There are many different algorithms for building consensus based on requirements related to performance, scalability, consistency, threat model, and failure model.
Consensus is the validation mechanism that a blockchain network uses . These are the validation rules by which the network automatically validates a transaction . Consensus is required to maintain the world state of the blockchain network.
While deciding which Blockchain platform to choose it is important to understand the consensus mechanism that it deploys because the underlying philosophy and risk to business depends a lot on the chosen consensus mechanism.
The Proof of Elapsed Time consensus protocol is what is used by Intel Sawtooth now IntelLedger (under Linux Hyperledger Foundation) .
This consensus algorithm has vouched for a random leader election methodology. The leader can be any of the participating active nodes. The chosen leader finalizes the block .
The system ensures that the leader is chosen without manipulation and all participating notes verify the same and also deploy random leader distribution method.
Intel SGX is a set of CPU code instructions from Intel that allows user-level code to allocate private regions of memory, called enclaves, that are protected from processes running at higher privilege levels.
Intel designed SGX to be useful for implementing secure remote computation, secure browsing, and digital rights management (DRM).
PoET uses Intel special processor capability to regulate block frequency rather than computation
Sawtooth abstracts the core concepts of consensus and isolates consensus from transaction semantics. The interface supports plugging in various consensus implementations. Sawtooth provides two such implementations: dev_mode and PoET.
Dev_mode is a simplified random leader algorithm that is useful for developers and test networks that require only crash fault tolerance.
PoET, short for “Proof of Elapsed Time” is a Nakamoto-style consensus algorithm. It is designed to be a production-grade protocol capable of supporting large network populations.
PoET essentially works as follows... Every validator requests a wait time from an enclave(a trusted function). The validator with the shortest wait time for a particular transaction block is elected the leader.
Proof-of-elapsed-time (PoET), solves the computing problem of "random leader election," or selecting who will create the next block of transactions.
One function, say “CreateTimer” creates a timer for a transaction block that is guaranteed to have been created by the enclave.
Another function, say “CheckTimer” verifies that the timer was created by the enclave and, if it has expired, creates an attestation that can be used to verify that validator did, in fact, wait the allotted time before claiming the leadership role.
The PoET leader election algorithm meets the criteria for a good lottery algorithm. It randomly distributes leadership election across the entire population of validators with distribution that is similar to what is provided by other lottery algorithms.
The probability of election is proportional to the resources contributed (in this case, resources are general purpose processors with a trusted execution environment).
An attestation of execution provides information for verifying that the certificate was created within the enclave (and that the validator waited the allotted time).
Further, the low cost of participation increases the likelihood that the population of validators will be large, increasing the robustness of the consensus algorithm.
The Sawtooth platform is distributed in source code form with an Apache license.
The Apache License is a permissive free software license written by the Apache Software Foundation (ASF) .
Like other free software licenses, the license allows the user of the software the freedom to use the software for any purpose, to distribute it, to modify it, and to distribute modified versions of the software, under the terms of the license, without concern for royalties.
The Apache License allows you to freely use, modify, and distribute any Apache licensed product.
PoET is notably designed to be used on a certain type of computer manufactured by Intel, called trusted execution environments (TEE).
The Trusted Execution Environment (TEE) is a secure area of the main processor. It guarantees code and data loaded inside to be protected with respect to confidentiality and integrity.
The TEE as an isolated execution environment provides security features such as isolated execution, integrity of Trusted Applications along with confidentiality of their assets.
In general terms, the TEE offers an execution space that provides a higher level of security than a rich mobile operating system open (mobile OS) and more functionality than a 'secure element' (SE).
The “Sawtooth Lake” platform, which promises to allow companies to run their own blockchain, providing a permanent digital record.
The Sawtooth Lake platform provides two consensus protocols with different performance trade-offs. The first, called PoET for “Proof of Elapsed Time,” is a lottery protocol that builds on Trusted Execution Environments (TEEs) provided by Intel’s Software Guard Extensions (SGX) to address the needs of large populations of participants.
The second, Quorum Voting, is an adaptation of the Ripple and Stellar consensus protocols and serves to address the needs of applications that require immediate transaction finality.
PoET uses a TEE such as SGX to ensure a safe, random and robust lottery function without the specialized hardware and high power required by most proof algorithms.
Intel’s approach is based on a guaranteed wait time provided through the TEE. According to Intel, the algorithm scales to thousands of participants and will run efficiently on any Intel processor that supports SGX.
Algorithms for achieving consensus with arbitrary faults generally require some form of voting among a known set of participants. Two general approaches have been proposed.
The first, often referred to as “Nakamoto consensus”, elects a leader through some form of “lottery”. The leader then proposes a block that can be added to a chain of previously committed blocks. In Bitcoin, the first participant to successfully solve a cryptographic puzzle wins the leader-election lottery.
The elected leader broadcasts the new block to the rest of the participants who implicitly vote to accept the block by adding the block to a chain of accepted blocks and proposing subsequent transaction blocks that build on that chain.
The second approach is based on traditional Byzantine Fault Tolerance (BFT) algorithms and uses multiple rounds of explicit votes to achieve consensus. Ripple and Stellar developed consensus protocols that extend traditional BFT for open participation.
Sawtooth Lake abstracts the core concepts of consensus, isolates consensus from transaction semantics, and provides two consensus protocols with different performance trade-offs.
The first, called PoET for “Proof of Elapsed Time”, is a lottery protocol that builds on trusted execution environments (TEEs) provided by Intel’s SGX to address the needs of large populations of participants.
The second, Quorum Voting, is an adaptation of the Ripple and Stellar consensus protocols and serves to address the needs of applications that require immediate transaction finality.
The idea of Proof of Elapsed Time acts much like Bitcoin's Proof of Work lottery consensus, but does not require nearly as much electricity expenditure.
Participants can either enter low power mode whilst TEE is generating PoET and save on costs, or perform other functions if part of a cloud compute environment.
One potential consequence of PoET versus Bitcoin's PoW is a shift from OPEX to CAPEX as an economic deterrent to Sybil and 51% attacks on a blockchain network.
Bitcoin's miners are primarily using dedicated ASIC chips to solve the cryptographic puzzle, which are much faster and cheaper than running CPUs to perform the same task, but they burn through a lot of electricity.
This means you can reduce your initial CAPEX outlay by using cheaper ASICs, but have high OPEX electricity costs. With PoET, you have to purchase more expensive CPUs but reduce electricity OPEX costs.
Capital expenditure, or CapEx, are funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. CapEx is often used to undertake new projects or investments by the firm.
An operating expense ( OPEX ) results from the ongoing costs a company pays to run its basic business.
Intel is the creator of the open source Hyperledger Sawtooth project, which enables blockchain usages for enterprise and other segments and is designed to run on the Intel Xeon platform.
While SGX technology is proprietary, the blockchain software that grew out of Intel’s experiments is not, and has since been open-sourced as the Hyperledger Sawtooth code base.
BITCOIN HAS JUMPED TO 8270 USD .
WHEN SUCH A SPIKE HAPPENS IT MEANS SOMEBODY IS LAUGHING ALL THE WAY TO THE KOSHER BANK
Tether has issued more than 300m tokens over the past seven days. A staggering amount, to say the least. They keep issuing money – like a central bank – at an alarming rate. There is almost $1bn USDT in circulation at this time. For a currency pegged to the US Dollar, Tether is extremely shady
Tether used to have a different name – Realcoin.
It used to be an ordinary altcoin which was rather popular among traders but could not compete with Litecoin, Namecoin and other cryptocurrencies. Tether owners decided that rebranding will have positive impact on their business
Actually it's not that easy to explain how Tether works. If we simplify the system to the maximum possible extent we could describe Tether as a service turning USD, EUR and other fiat currencies into virtual (digital) tokens which are later send and received with the use of Bitcoin blockchain.
In other words Tether is kind of a digital tie to tangible assets of the real worlds. Technically it is not even a cryptocurrency – it is more a way for using fiat currencies like electronic currencies.
Basically Tether allows to make online transactions with tokens (which can be called a cryptocurrency too) equal to US dollars. That is a good alternative to volatile Bitcoin since USD exchange rate is much more stable .
One Tether token (USDT) is always equal to one US dollar. This cannot be changed and it convinces us that volatility typical for electronic currencies is not a serious threat for us.
Using Tether you never have to worry about currency exchange rate – USD is the most stable currency in the world and USDT is directly bound to the USD dollar. It means that you do not have to put much funds at the risk.
By combining principles of digital and fiat currencies Tether disturbs the balance of the global financial market. People who earn on buying and selling online have already realized that it's possible to earn a lot with Tether.
TILL THIS BLOGSITE PENNED AT 33 PART SERIES ON SHELL COMPANIES, LAKHS OF SHELL COMPANIES WERE BLEEDING BHARTAMATA
ALMOST EVERY SUPER RICH BIG FISH IN INDIA OPERATED SHELL COMPANIES .
IPL CRICKET TEAM OWNERS SIGNED THEIR CONTRACTS USING SHELL COMPANIES. LALIT MODI KNOWS WHO THEY ARE
JUST WHO THE HELL IS BCCI ?
AN NGO STARTED BY JEW ROTHSCHILD!
WHY WAS BCCI BEING MANAGED ( STILL BEING MANAGED ) BY POWERFUL POLITICIANS ( BOTH PANDAVAS AND KAURAVAS ) AND EX-ROTHSCHILDs OPIUM DRUG RUNNING AGENTS ?
ENRON RAPED BHARATMATA.
THERE WAS NOBODY IN INDIA SMART ENOUGH TO POINT OUT THE ELEPHANT IN THE ROOM
ENRONs REBECCA MARKS CAME IN MINI SKIRT AND FLASHED HER PUSSY AT INDIAN MEN WHO MATTER
May 28, 2017 at 12:50 PM
Rebecca Mark the high profile sexy high flying Globe-trotting in stiletto heels and a miniskirt Enron top executive who zoomed up the corporate ladder in a jiffy and who met Bal Thackeray at his home when Enron India was being set up.....
IS NOW MANAGING HER CATTLE RANCH IN TAOS New Mexico of course with millions of dollars in the bank...
Capt. Ajit Vadakayil
May 28, 2017 at 1:37 PM
I KNOW WHICH ALL INDIANS REBECCA BABY MET --I HAVE KEPT TRACK
SOME IN PUBLIC-- SOME IN SECRET WITH EXTRA SHORT MINI SKIRT
SHE WON THE DHABOL DEAL BY ALLOWING INDIAN LEADERS TO SEE HER MICRO THONGS --SHARON STONE STYLE
Rebecca Mark's name is NEVER uttered in the list of Enron's main miscreants. Her disappearing act is even more remarkable given the size and scope of the failed ENRON
She was too young and inexperienced to hold such a high post. She was a farmer's daughter who worked her ass off in the fields
When she worked at Houston Natural Gas --she was known to do a Monika Lewinsky to her boss JEW John Wing--who treated her like dirt
One prominent (female) stock analyst said " Rebecca got to the top on her back."
At a party to celebrate the bagging of ENRON project at Dhabol she brought a elephant into a resort outside Houston --at the same party, she was dressed in leather-and then she rode in on the back of a Harley-Davidson
I HAD MET AN ENRON EMPLOYEE IN USA WHO TOLD ME HOW SHE "CHARMED" SOME INDIANS TO GET THE DHABOL PROJECT --I KNOW THOSE BASTARDS WHO WANTED TO SEE HER IN A SARI.
WORLD BANK KNOWING THAT PUSSY POWER WAS HAPPENING AT DHABOL--REFUSED TO FINANCE THE ENRON PROJECT
By early December 1993, Mark had all the signatures she needed. The Indian government signed a contract requiring it to pay Enron about $1.3 billion per year, or about $26 billion over the life of the 20-year contract. It was, THE of the largest civilian or military contracts ever signed, anywhere on the globe --in a jiffy
Over the life of the contract, India would pay Enron and its partners nearly nine times what Dabhol had cost.
Furthermore, India was required to pay for any cost increases caused by price hikes associated with the plant's fuel, electricity transmission lines or plant maintenance.
The final insult of the contract was a stipulation that required India to pay Enron in American dollars, even though the Indian rupee was undergoing regular depreciation.
SOME DESH BHAKT INDIANS OBJECTED .
On August 26, 1993, Rebecca baby faxed a signed letter to CM of Maharashtra Sharad Pawar, complaining about an Indian named MISTER BEG and demanding that contract be signed
She was twice named as one of the 50 most powerful businesswomen in America by Fortune magazine –using PUSSY power
She used her femininity and no-nonsense manner first to disarm the men she dealt with, then bulldoze through any resistance that remained. She was a devastating success.
Rebecca baby using PUSSY power had negotiated a WIN -LOSE contract.
Between 1996 and 1998, in just two years her total compensation was more than 28 million USD -more than any other Enron employee during that time-- a huge amount of money those days
By 1998, she was named vice chairman of the Enron board and held voting power on more stock than anyone else on the board except for Robert Belfer, Lay and Skilling.
I HAVE SEEN SUCH WOMEN- I KNOW HOW THEY OPERATE USING SHARON STONE TACTICS
capt ajit vadakayil
Capt. Ajit Vadakayil
May 28, 2017 at 2:24 PM
WE INDIANS WANT THE ENRON BRIBERY CASE TO BE OPENED UP
EVERYBODY IN ENRON KNOWS WHICH BIG FISH INDIAN POLITICIAN WAS BRIBED !!
Capt ajit vadakayil
WAR IS PEACE
WHITE IS BLACK
SUNRISE IS SUNSET
WOLF IS SHEEP
FOUR LEGS GOOD, TWO LEGS BAD
Sawtooth Lake features an EXPERIMENTAL ( HULLO ARUN JAITLEY ??? IS INDIA A GUINEA PIG ??? ) experimental consensus algorithm called Proof of Elapsed Time (PoET) that relies on trusted computing to deliver a more efficient consensus.
Trusted execution environments (TEE), such as Intel Software Guard Extensions (SGX) included on recent Intel processors support the PoET algorithm, which scales to support thousands of participants.
Intel has since contributed the Sawtooth Lake code to the open source Hyperledger project, where it can be downloaded and appraised without need for SGX hardware.
However, being a simulation this is not a secure implementation but it provides one way of exploring an area of technology
Bitcoin hit an all high of $US8270 for the first time yesterday . This is similar to the dotcom bubble and Dutch tulip mania of the 17th century. After a more than 700 per cent increase in value since the start of the year, bitcoin’s market capitalisation — the price multiplied by the number of bitcoins in circulation — now sits at more than $US137 billion
The market capitalisation of all cryptocurrencies, including Ethereum, Ripple and Bitcoin Cash — a “fork” of the main bitcoin line — is now more than $US243 billion.
Bitcoin is rising faster than any asset class we have seen over the last 400 years
According to Katsunori Sago, the chief investment officer at Japan Post Bank, the fair value of bitcoin should be around $US100 — nearly 99 per cent below its current level
Tether, the issuer of currency-pegged tokens USDT, announced a hack that happened on November 19, 2017, when more than $30 million's worth of USDT was withdrawn to an unauthorized address and hence lost.
The company announced that:--
" $30,950,010 USDT was removed from the Tether Treasury wallet on November 19, 2017 and sent to an unauthorized bitcoin address. As Tether is the issuer of the USDT managed asset, we will not redeem any of the stolen tokens, and we are in the process of attempting token recovery to prevent them from entering the broader ecosystem."
"The attacker is holding funds in the following address: --16tg2RJuEPtZooy18Wxn2me2RhUdC94N7r. If you receive any USDT tokens from the above address, or from any downstream address that receives these tokens, do not accept them, as they have been flagged and will not be redeemable by Tether for USD."
In essence, the hack has destroyed one of the larger USDT liquidity injections that happened in November and that some users link to a disproportionate rise in Bitcoin's price.
After the announcement, crypto assets lost the recent heights, with Bitcoin crashing from above $8,200 to $7,700.
Three days ago, experts noticed a strange move of Tethers to an address not belonging to Bitfinex or any known exchange on the Rich List. It turns out to be the hacker's address
Tether will offer new software builds that will freeze the funds and not allow them to be moved and exchanged. In the past day, users reported frozen wallets, and the freeze may continue, putting several exchanges and digital assets under stress.
CAPT AJIT VADAKAYIL HAD PREDICTED THIS TWO DAYS AGO , RIGHT ?
IT IS ON RECORD IN THIS SERIES.
WHAT CAN YOU EXPECT FROM OUR PEA BRAINED CHOOTIYA INDIAN MAIN STREAM BENAMI MEDIA?
VVIP RACISM—POT HOLES—BOLLYWOOD—CRICKET— NONEXISTANT RAPE IN INDIA—INTOLERANCE BY HINDUS DUBBED AS FRINGE IN OUR OWN LAND –
YES— WE KNOW WHY MODI CHOSE THAT BOLLYWOOD STARLET SMRITI IRANI AS INDIAs I&B MINISTER
--HER JOB IS TO GIVE HER BOSS MODI A FAALTHU EGO MASSAGE GHADI GHADI
CAPT AJIT VADAKAYIL DECLARES--
EVERY HACK OF CRYPTO CURRENCY IS AN INSIDE JOB
Out of an estimated 1.6 billion USD invested in ICOs MORE than 200 million ended up in the hands of criminals --almost all are INSIDE jobs .
Some of these heists have been considerable. The DAO, for example, was famously hacked and saw 55 million siphoned off by cyber-criminals.
Omni Core is used by Tether integrators to support Omni layer transactions. Through the software, Tether has the authority to prevent the movement of stolen coins from the hacker’s address.
Such level of centralization exposes Tether of fund and network manipulation, considering that with pressure from the law enforcement, the Tether development team is able to prevent funds from moving the across the network and disable certain addresses indefinitely.
Public blockchain networks such as bitcoin are valuable because of their security value. Their immutable, decentralized, and unalterable nature eliminates the possibility of government interference, creating independent economies and protocols that operate by strict network rules.
The fact that addresses and funds within the Tether network can be easily altered and manipulated by a small group of network operators presents a dangerous vulnerability as a blockchain network, and also raises a question on the necessity of blockchain technology, considering that it is difficult to consider or justify Tether as a decentralized and public blockchain network.
Tether is not exactly a big player in the cryptocurrency scene, like bitcoin or Ethereum are. It’s only supposed to act as a proxy for national currencies such as the dollar, euro and yen, for tasks such as settling balances between exchanges.
It uses blockchain technology, but claims to avoid bitcoin’s volatility through its currency pegs.
Kraken is a US based the world's largest bitcoin exchange in euro volume and liquidity
In the past few weeks Tether has been providing unaudited, artificial liquidity to the Bitcoin markets and inflating the price.
Kraken, one of the main USDT markets for moving to fiat, has moved USDT offline, waiting for an upgrade to correct the tether theft.
Tether and Bitfinex must come under scrutiny for a form of hidden asset price manipulation.
One of the partners that uses Tether is crypto exchange Bitfinex, which itself lost 119,756 bitcoin — then worth $72 million but valued at over $950 million today — in a hack in Aug 2016 This was stolen from the exchange platform Bitfinex in Hong Kong..
The bitcoin was stolen from users’ segregated wallets..
The security breach came two months after Bitfinex was ordered to pay a $75,000 fine by the U.S. Commodity and Futures Trading Commission in part for offering illegal off-exchange financed commodity transactions in bitcoin and other digital currencies.
Bitfinex had announced a tie-up with Palo Alto-based BitGo, which uses multiple-signature security to store user deposits online, allowing for faster withdrawals.
The scandal highlighted the risks of companies using cryptography for their ledgers.. The more you rely on its benefits, the greater the potential for damage when keys are stolen
It is SURE that the theft was an inside job –as it is difficult for hacckers togain access to the system externally.
Yesterday’s hack ( 31 million USD ) is sure to throw up more questions about the relationship between Tether and the secretive exchange Bitfinex..
The duo are rumored to share owners, and have been accused of leaning on each other to manipulate the market.
Any idiot can figure out that this is an INSIDE JOB
Tether, with a market capitalization of $675 million, is the world’s 20th most-valuable virtual currency
Skepticism had already been building after the company behind the tokens said in April that all international wires had been blocked by its Taiwanese banks. That fueled questions about whether the tokens were fully backed back fiat currencies.
Tether’s users are unlikely to abandon it as long as it is supported by exchanges and no other credible pegged token appears
Devasini Giancarlo CFO at Bitfinex and Director at Tether was listed in the Paradise Papers.
Below: WHO THE FUCK IS APPLEBY ?
Tether and Bitfinex have insisted that the 2 operations are separate.
But leaked paperwork called the Paradise Papers, which had been made public this month, present that Appleby, an offshore legislation agency, helped Potter and Mr. Devasini, the Bitfinex operators, arrange Tether within the British Virgin Islands in late 2014.
The operations of law firm Appleby are under the spotlight after millions of its documents were disclosed in the Paradise Papers leak.
Appleby is one of the handful of major international "offshore legal service providers". Its business is to help clients, be they financial institutions, global corporations or high-net-worth individuals, to set up and register companies and trusts in overseas jurisdictions with low or zero tax rates and high financial confidentiality.
It's the kind of work which, inevitably, can lead to contact with KOSHER CLIENTS who have chequered backgrounds, controversial reputations or opaque motives.
Appleby was named offshore firm of the year by Legal 500 UK in 2015. Such reputations are hard won.
The first Appleby practice was established in Bermuda by Rothschild’s agent Major Reginald Appleby in 1890..
By 1903 he was a justice of the peace when he sat on the marine court of inquiry to take care of British East India Company ( owned by Jew Rothschild ) shipping matters ..
Appleby was made a Commander of the Order of the British Empire by Rothschild.
Though the 119-year-old Appleby is not a tax adviser, it is a member of a global network that sets up offshore companies for clients eager to avoid taxes or keep their finances hidden.
Since expanding outside Bermuda in 1979, Appleby has transformed itself into a global institution with more than 700 employees across nearly every major tax haven from the Cayman Islands, to the Isle of Man, Mauritius and Hong Kong.
Appleby's corporate clients include Barclays Group, Citibank, Credit Suisse, Goldman Sachs, HSBC Bank, JPMorgan Chase, KPMG, Lloyds Banking Group, PwC, Royal Bank of Scotland Group, Santander UK and Standard Chartered—and several Rothshild’s agents
Today, Appleby makes millions and is a key player in what insiders call the "offshore magic circle" — an informal collection of the world’s biggest offshore law firms. Anybody who treads on their toes is sued to eternity
Appleby’s internal records reveal a preoccupation with secrecy that pervades tax havens. For this reason, governments around the world are targeting the law firms that operate in tax havens, to force them to reveal the hidden transactions that deprive public coffers of trillions of dollars each year.
Unlike last year’s Panama Papers leak, which exposed Panamanian law firm Mossack Fonseca, a firm that has been criticized as a bad apple in the offshore world, the Paradise Papers leak reveals the business of one of the world’s most prestigious blue-chip law firms, Appleby, which caters to the world’s biggest multinational corporations and the wealthiest families on the planet.
Documents found in the 6.8 million internal Appleby files in the leak show the firm was aware of multiple cases where it accepted dirty money. Appleby is already publicly associated with the Bermuda Longtail Trust, one of the biggest tax scams in recent Canadian history.
The scam, originally revealed by a Star investigation in 2007, duped almost 10,000 people, including nurses, teachers and at least one police officer, into making donations to bogus charities in order to receive a tax receipt worth four times more.
Appleby administered the trust for Canadian businessman Edward Furtak. The trust had collected more than $100 million by the time the Canada Revenue Agency (CRA) got wise to the scheme, and a group of clients sued. Appleby settled the class action for $17.5 million last summer
The Sun Group, Jindal Steel, Apollo Tyres, Havells, Hindujas, Emaar MGF, Videocon, Amitabh Bachchan and the Hiranandani Group are among the major firms on the Paradise papers list.
At least 714 Indians are named in documents leaked from two financial companies – Bermuda’s Appleby and Singapore’s Asiaciti – that help the rich and the powerful move their money abroad and invest it in 19 tax havens.
The information was released by United States-based International Consortium of Investigative Journalists. Nand Lal Khemka’s Sun Group, Appleby’s second-largest client with 118 different offshore entities, was also mentioned in the list..
Several prominent companies under the scanner of the Central Bureau of Investigation and the Enforcement Directorate are listed as Appleby’s clients.
These include firms named in the Sun-TV-Aircel-Maxis case, the Essar-Loop 2G case, the Rajasthan ambulance scam that is currently being investigated by the CBI. The investigating agency had named a company called Ziquista Healthcare, where Sachin Pilot and Karti Chidambaram were early honorary and independent directors.
Among the individuals named in the leak are actor Amitabh Bachchan, Union minister Jayant Sinha, Bharatiya Janata Party’s Rajya Sabha MP RK Sinha, and corporate lobbyist Niira Radia. Jayant Sinha’s name figures in the list because of his former role within the Omidyar Network.
This cache of documents were obtained by German newspaper Süddeutsche Zeitung. Most of the papers scrutinised are from Appleby which helps its clients set up offshore companies and manage their bank accounts to help them either avoid or evade taxes, manage their real estate properties, open escrow accounts, or move millions across the globe..
These days, no exchange is bigger than Bitfinex, an opaque operation that provides no information on its website about where it is or who operates the company.
Bitfinex, which is officially incorporated in the British Virgin Islands, has been fined by regulators in the United States and cut off by American banks, and it has lost millions of dollars of customer money in two separate hackings, leading critics to question whether it even has the money it claims to hold.
The chief executive of Bitfinex and Tether is the same man- Jan Ludovicus van der Veld
The liquid nature of the Bitcoin markets, flowing round nationwide borders and legal guidelines, is a product of the digital forex’s uncommon construction. Bitcoin is saved and moved by means of a decentralized community of computer systems that aren’t underneath the management of any single firm or authorities.
This construction signifies that the digital forex continues to be a straightforward goal for individuals who need to manipulate its worth or use it to launder cash.
Unregulated, unregistered exchanges are a very big concern for the industry and the community broadly..
The most frequent face of Bitfinex is its chief technique officer, Phil Potter.. Potter,runs Bitfinex alongside Mr. Van der Velde, a Dutch-speaking man dwelling in Hong Kong, and Giancarlo Devasini, an Italian man who lives on the French Riviera, in accordance with firm filings in Hong Kong.
Before the 31 million hack two days ago, the firm misplaced 1,500 Bitcoin, value round $400,000, to a hacker in 2015. But probably the most damaging incident occurred in August 2016 when a thief obtained nearly 120,000 Bitcoin, value round $75 million on the time.
All three are inside jobs.
The firm unfold out the losses to all clients — even those that weren’t holding Bitcoin on the time of the hacking — by forcing clients to take a 36 % haircut or loss on any cash on the change.
Wells Fargo stated this year that it will not transfer cash from Bitfinex accounts. Shortly after, Bitfinex stated its major banks in Taiwan had been shutting it off.
Since then, it has moved between a collection of banks in different international locations, with out telling clients the place the change’s cash is saved.
Customers can purchase Tether cash on Bitfinex after which switch them to different digital forex exchanges, offering a strategy to transfer between international locations with out going by means of banks.
In current weeks, a couple of hundred hundreds of thousands ’ value of Tether has modified fingers each day throughout a number of exchanges
Again, the core of the Paradise Papers leak, totaling more than 13.4 million documents, focuses on the Bermudan law firm Appleby, a 119-year old company founded by Jew Rothschild , that caters to blue chip corporations and very wealthy people who laundered their dirty money.
Appleby helps clients reduce their tax burden; obscure their ownership of assets like companies, private aircraft, real estate and yachts; and set up huge offshore trusts that in some cases hold billions of dollars.
The predominantly elite clients of Appleby contrast with those of Mossack Fonseca — the company whose leaked records became the Panama Papers — which appeared to be less discriminating in the business it took on. The records date back to 1950 and up to 2016.
Appleby has offices in tax havens around the world. In addition to its Bermudan headquarters, it works out of places like the British Virgin Islands and the Cayman Islands in the Caribbean; the Isle of Man, Jersey and Guernsey off Britain; Mauritius and the Seychelles in the Indian Ocean; and Hong Kong and Shanghai.
The documents come not only from Appleby, but also from the Singaporean company Asiaciti Trust and official business registries in places such as Bermuda, the Cayman Islands, Lebanon and Malta.
On 15 November 2017, the International Consortium of Investigative Journalists (ICIJ) released its first story from the half a million documents leaked from the Singapore headquarters of AsiaCiti Trust.
AsiaCiti Trust is an international trust and corporate services provider with operations in Hong Kong, the Cook Islands, Dubai, Nevis, New Zealand, Panama and Samoa.
Both AsiaCiti and its Australian founder and Chairman Graeme Walter Briggs appear in the Panama Papers, including having shared ownership of several companies with the now-infamous offshore law firm Mossack Fonseca.
Singapore’s corporate tax rate is 17%, [rating] among the lowest in the world. In 2016 a report by Oxfam ranked Singapore as the world’s fifth worst corporate tax haven.
The report claims that these countries are creating a “race to the bottom” which undermines the entire global taxation system, through a combination of policies including ever-lower corporate tax rates and anonymity as a shelter from tax authorities in other jurisdictions.
Flows of wealth from other jurisdictions have helped to buoy Singapore’s private banking industry
Singapore and similar jurisdictions including Switzerland and the UK play a crucial role as conduits between jurisdictions where wealth originates and so-called ‘sink’ jurisdictions such as the Cayman Islands or Panama.
Conduit offshore financial centres generally have low or zero taxes imposed on the transfer of capital to other countries, either via interest payments, royalties, dividends or profit repatriation, and highly developed legal systems to help channel and disperse wealth to ‘sink’ jurisdictions.
This is exactly the pattern of behaviour which the Paradise Papers have exposed at AsiaCiti Trust, which takes in wealth from its clients in the USA, China, Switzerland, Romania, Nigeria, Thailand and South Africa and re-routes it via Singapore to corporations in Samoa, the Cook Islands and Panama
Again, Tether and Bitfinex have insisted that the two operations are separate. But leaked documents , Paradise Papers, show that Appleby, an offshore law firm, helped Mr. Potter and Mr. Devasini, the Bitfinex operators, set up Tether in the British Virgin Islands in late 2014.
According to their terms of service Bitfinex consists of two BVI corporations, for U.S. customers: BFXNA Inc and for all other regions iFinex Inc
IFinex Inc. (BVI) operates as a financial technology company. The company owns and operates Bitfinex
Wells Fargo does NOT allow customers withdraw the money controlled by iFinex and Tether anymore
IFINEX, a BVI company, is the legal owner of Bitfinex, Tether and Blockstream, among others. One for trading, one for printing (out of thin air) USDT and one controlling Bitcoin development.
Blockstream is a blockchain technology company-- they provide funding for the development of Bitcoin Core, the predominant network client software.
Blockstream employs several prominent bitcoin developers.
Blockstream is one of the largest contributors of funding for Bitcoin Core-- the reference client of bitcoin. It is the reference implementation for bitcoin nodes, which form the bitcoin network. Through changes to Bitcoin Core, its developers make changes to the underlying bitcoin protocol.
Bitcoin Core includes a transaction verification engine and connects to the bitcoin network as a full node. Moreover, a cryptocurrency wallet, which can be used to transfer funds, is included by default The wallet allows for the sending and receiving of bitcoins.
It does not facilitate the buying or selling of bitcoin. It allows users to generate QR codes to receive payment. The software validates the entire blockchain, which includes all bitcoin transactions ever.
Blockstream participates in Hyperledger as a general member.. The Hyperledger project is a cross-industry collaborative effort to create blockchain based open standard for distributed ledgers for globally conducted business transactions.
Bitfinex is using Tether in its margin markets for wash trading.
“I GOT BITFINEXED” WILL SOON BE A TERM FOR ”I GOT FUCKED”
The Monetary Authority of Singapore, the country’s central bank, is pressing ahead with regulation that will bring a handful of retail payment services, including bitcoin and cryptocurrency exchanges, under a single legislation.
As regulator, the MAS will have oversight to look into money laundering and terrorism financing risks as well as ensuring safeguards for consumers’ funds.
When enacted, payment firms, as well as bitcoin exchanges, will be required to hold only one license under the new regulatory framework.
The new framework will expand the scope of regulation to include domestic money transfers, merchant acquisition and the purchase and sale of virtual currencies..
Bitfinex handles around 11% of the current Bitcoin trading volume, and at the moment.. . Again, the Bitfinex CSO Philip Potter is also listed as the director of Tether Holdings Limited, per the recent leak in the Paradise Papers.
BitConnect is a Cryptocurrency that facilitates the Lending of capital through Blockchain Technology. BitConnect was launched on November 15, 2016. It was released as an open source software in January 2017.
It's a peer-to-peer Cryptocurrency in which transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called the blockchain using Proof of Work(PoW) and Proof of Stake(PoS) algorithm..
BitConnect Coin mining differs from Bitcoin because it's mining is based on CPU/GPU, unlike Bitcoin which is based on ASIC miner.
The most brazen of BitConnect’s marketing is a pyramid info-graphic depicting different percentage awards depending on the “level” of member a user is. It’s little wonder therefore that the UK have given BitConnect an ultimatum.
BitConnect (BCC) has come under scrutiny from UK authorities. The company has been threatened with closure as well as having their assets seized if they’re unable to prove that they are not a ponzi scheme.
Failure to provide evidence of “cause to the contrary” would result in the UK Registrar of Companies forcing the closure of BitConnect.
BitConnect, was registered by a British man under the name Ken Fitzsimmons. Interestingly, the name doesn’t appear anywhere within BitConnect’s own literature leaving the community with considerable doubt about the legitimacy of the platform.
Bitconnect has been showing signs recently that its top promoters are jumping ship.
Accusations of wash trading at Bitfinex – “printing” tethers and using them to artificially bump the price of bitcoin before cashing out, sending the USD to Tether, and repeating the cycle – aren’t the only ones the exchange has been facing.
Why doesn’t Bitfinex reveal its current banking arrangements or where its money is stored? The company did produce a financial statement in September 2017, but it failed to prove that each tether is backed by a US dollar.
Bitfinex had a falling out with Wells Fargo, the last bank that was willing to process their transactions last year. And shortly after, they suffered the largest Bitcoin robbery since Mt Gox—in August 2016, the exchange lost 120,000 BTC to what it says was a hack.
It didn’t help that their decision to “distribute the losses equally” amongst user accounts was met with controversy. Neither did the fact that they gave no clear explanation as to how exactly the hack happened.
Although they were able to “pay off” users by offering them equity, the lack of transparency and refusal to submit to audit compliance did not sit well with the public.
Or maybe they do have a bank, but can’t admit it to the public because the bank they’re banking with unwittingly dealt with them through one of their shell companies.
To circumvent the banking problem, Bitfinex is likely employing Hawala banking.
Bitfinex essentially match-makes you with someone wanting to withdraw from their exchange, and you send the money directly to the other party withdrawing.
No major bank wants to partner up with Bitfinex, so they’re pumping the price of BTC in order to keep a steady flow of depositors and keep them from cashing out of the exchange.
And while the pump part of this isn’t scary from a HODLer’s perspective—it’s the dump that is.
HODL is used for "hold" - it's a term that was invented by a psycho who did a typo and it became famous. Whenever people talk here about holding their coins, they would rather say "hodl your bitcoins".
The minute the prices of Bitcoin turns bearish, and the prices continuously fall, eventually people will stop catching knives, money coming in comes to a trickle, and people are wanting to withdraw and nobody wants to deposit.
So, the only choice Bitfinex has, is to relentlessly manipulate the price of Bitcoin up for as long as possible so that people always want to deposit, until they are able to re-establish a legitimate banking partner
It has now emerged that Bitfinex has yet another new bank.
This time, its European home is with the obscure Bank Polskiej Spółdzielczości – also the home of CEX.io – under the name of CRYPTO SP.ZO.O.
Why isn’t Bitfinex using its own name and why is it with a bank that ranks 15th in Poland in terms of asset value and 26th in terms of number of outlets? The director of Bank Polskiej Spółdzielczości is Molina Lee Ivan Manuel who is also the director of numerous Panamanian shell companies.
Offshore shell companies are a recurring theme with Bitfinex; the so-called Paradise Papers, which leaked this month, show that Bitfinex’ operators used an offshore firm to help them incorporate Tether in the British Virgin Islands.
Tether itself has also been shady, marketing their tokens as “money for the internet,” yet repeatedly stating in the less conspicuous legal section of their website that Tethers are not money and that they are under no obligation to exchange users’ Tethers with actual money.
Despite shady banking, dubious use of tethers, another hack, and slow withdrawals, Bitfinex is flexing its muscles..
What Intel claims to be a Blockchain is a misnomer—it is a consensus protocol for distrusted systems….generically.
Proof of Elapsed Time is just one of the many useful capabilities that can be built based on Intel’s Secure Guard Extensions (SGX)
PoET as used in Intel’s Sawtooth platform will probably not see mass adoption in public networks due to its dependence on Intel chips – but for SOLD OUT bastards ( to white Jews ) and IGNORANT Indian politicians--
These CUNTS don’t know that relying 100% on Intel means total CENTRALISATION ( and not 100% decentralization boasted by blockchain )
For private and consortium networks it is a viable and superior alternative to proof of work (mining). Proof of Work induced mining wastes electricity
Intel’s SGX platform would allow you to execute an instruction which says ret=elapseTime(1omins);
Once you execute this statement, the SGX platforms will “discuss” amongst themselves and choose a single leader. The “discussion” will be according to Intel fair, reliable and secure i.e. leader selection is random and uniformly distributed such that everyone has a chance of becoming a leader.
Now lets say, i have 8 SGX chips and you have 2 SGX chips … between ourselves i have 80% chance of becoming a leader and you have 20%. Thus essentially it becomes a race as to who owns most number of SGX chips.
Bitfinex exercises control over Tether — enough to print off millions of unbacked Tether at their whim.
Tethers are being used to purchase Bitcoin, this is artificially inflating the price of BTC, since all the new Tethers are being used to purchase Bitcoin.
Tether is a bit of an unusual cryptocurrency. Unlike most coins, it’s not aiming for moon. It’s content to stay firmly on the ground, pegged to the US dollar.
The idea is to provide a way to trade USD (with all of its stability) with all the benefits of a cryptocurrency. Basically, crypto-freedom without crypto-volatility. All new Tether are created by the Tether Company. They will create as many new Tether as someone is willing to deposit dollars into their bank accounts.
The full amount will be stored in USD, and at any time, someone can redeem any amount of Tether back from the company for USD at a 1:1 ratio. All the exchange did was exchange one type of unbacked IOU (the BFX token) with another (Tether)!
Tether is primarily used to buy Bitcoin back, and it does have a tremendously high volume. It has 24h volume periods cracking half a billion dollars, regularly rivaling BCH or ETH. But its aggregate value is still under $700 million. That might seem like a lot, but is less than 0.5% of Bitcoin’s whopping $140 billion market cap.
Bitcoin uses the hashcash Proof of Work function as the Bitcoin mining core. All bitcoin miners whether CPU, GPU, FPGA or ASICs are expending their effort creating hashcash proofs-of-work which act as a vote in the blockchain evolution and validate the blockchain transaction log.
Hashcash is a proof-of-work system used to limit email spam and denial-of-service attacks, and more recently has become known for its use in bitcoin (and other cryptocurrencies) as part of the mining algorithm.
In contrast to hashcash in mail applications that relies on recipients to set manually an amount of work intended to deter malicious senders, the Bitcoin cryptocurrency network employs a different hashing-based Proof-of-work challenge to enable competitive bitcoin mining. A bitcoin miner runs a computer program that collects unconfirmed transactions from coin dealers in the network.
With other data these can form a block and earn a payment to the miner, but a block is accepted by the network only when the miner discovers by trial and error a "nonce" number that when included in the block yields a hash with a sufficient number of leading zero bits to meet the network's difficulty target.
Blocks accepted from miners form the bitcoin Blockchain that is a growing ledger of every bitcoin transaction since the coin's first creation.
While hashcash uses the SHA-1 hash and requires the first 20 of 160 hash bits to be zero, bitcoin's proof of work uses two successive SHA-256 hashes and originally required at least the first 32 of 256 hash bits to be zero. However the bitcoin network periodically resets the difficulty level to keep the average rate of block creation at 6 per hour.
As of August 2017 (block #478608) the bitcoin network has responded to deployments of ever faster hashing hardware by miners by hardening the requirement to first 72 of 256 hash bits must be zero.
Proof of work is a requirement to define an expensive computer calculation, also called mining, that needs to be performed in order to create a new group of trustless transactions (the so-called block) on a distributed ledger called blockchain.
Mining serves as two purposes:---
To verify the legitimacy of a transaction, or avoiding the so-called double-spending;
To create new digital currencies by rewarding miners for performing the previous task.
When you want to set a transaction this is what happens behind the scenes:
Transactions are bundled together into what we call a block;
Miners verify that transactions within each block are legitimate;
To do so, miners should solve a mathematical puzzle known as proof-of-work problem;
A reward is given to the first miner who solves each blocks problem;
Verified transactions are stored in the public blockchain
This “mathematical puzzle” has a key feature: asymmetry. The work, in fact, must be moderately hard on the requester side but easy to check for the network.
All the network miners compete to be the first to find a solution for the mathematical problem that concerns the candidate block, a problem that cannot be solved in other ways than through brute force so that essentially requires a huge number of attempts.
When a miner finally finds the right solution, he announces it to the whole network at the same time, receiving a cryptocurrency prize (the reward) provided by the protocol.
From a technical point of view, mining process is an operation of inverse hashing: it determines a number (nonce), so the cryptographic hash algorithm of block data results in less than a given threshold.
This threshold, called difficulty, is what determines the competitive nature of mining: more computing power is added to the network, the higher this parameter increases, increasing also the average number of calculations needed to create a new block.
This method also increases the cost of the block creation, pushing miners to improve the efficiency of their mining systems to maintain a positive economic balance. This parameter update should occur approximately every 14 days, and a new block is generated every 10 minutes.
Proof of work is not only used by the bitcoin blockchain but also by ethereum and many other blockchains.
Proof of stake is a different way to validate transactions based and achieve the distributed consensus.
It is still an algorithm, and the purpose is the same of the proof of work, but the process to reach the goal is quite different.
Unlike the proof-of-Work, where the algorithm rewards miners who solve mathematical problems with the goal of validating transactions and creating new blocks, with the proof of stake, the creator of a new block is chosen in a deterministic way, depending on its wealth, also defined as stake.
No block reward
Also, all the digital currencies are previously created in the beginning, and their number never changes.
This means that in the PoS system there is no block reward, so, the miners take the transaction fees.
This is why, in fact, in this PoS system miners are called forgers, instead.
Ethereum community wants to exploit the proof of stake method for a more greener and cheaper distributed form of consensus.
Also, rewards for the creation of a new block are different: with Proof-of-Work, the miner may potentially own none of the digital currency he is mining.
In Proof-of-Stake, forgers are always those who own the coins minted.
If Casper (the new proof of stake consensus protocol) will be implemented, there will exist a validator pool. Users can join this pool to be selected as the forger. This process will be available through a function of calling the Casper contract and sending Ether – or the coin who powers the Ethereum network – together with it.
Using a Proof-of-Work system, bad actors are cut out thanks to technological and economic disincentives.
In fact, programming an attack to a PoW network is very expensive, and you would need more money than you can be able to steal.
Instead, the underlying PoS algorithm must be as bulletproof as possible because, without especially penalties, a proof of stake-based network could be cheaper to attack.
To solve this issue, Buterin created the Casper protocol, designing an algorithm that can use the set some circumstances under which a bad validator might lose their deposit.
He explained: “Economic finality is accomplished in Casper by requiring validators to submit deposits to participate, and taking away their deposits if the protocol determines that they acted in some way that violates some set of rules (‘slashing conditions’).”
Slashing conditions refer to the circumstances above or laws that a user is not supposed to break.
Thanks to a PoS system validators do not have to use their computing power because the only factors that influence their chances are the total number of their own coins and current complexity of the network.
So this possible future switch from PoW to PoS may provide the following benefits:---
A safer network as attacks become more expensive: if a hacker would like to buy 51% of the total number of coins, the market reacts by fast price appreciation.
This way, CASPER will be a security deposit protocol that relies on an economic consensus system. Nodes (or the validators) must pay a security deposit in order to be part of the consensus thanks to the new blocks creation. Casper protocol will determine the specific amount of rewards received by the validators thanks to its control over security deposits.
If one validator creates an “invalid” block, his security deposit will be deleted, as well as his privilege to be part of the network consensus.
In other words, the Casper security system is based on something like bets. In a PoS-based system, bets are the transactions that, according to the consensus rules, will reward their validator with a money prize together with each chain that the validator has bet on.
So, Casper is based on the idea that validators will bet according to the others’ bets and leave positive feedbacks that are able accelerates consensus.
Hyperledger Sawtooth, developed by Intel offers a modular blockchain architecture. It consists of Proof of Elapsed Time (PoET), a consensus algorithm developed by Intel for high efficiency among distributed ledgers.
Sawtooth employs an EXPERIMENTAL consensus algorithm -- Proof of Elapsed Time, or PoET.
It’s a form of random leader election, wherein each validator node waits a random amount of time before trying to claim a block.
In other random leader election algorithms like Proof of Work, that randomness is enforced by searching for partial hash collisions. PoET replaces that work with trusted computing. The benefit of this is a more economical and greener algorithm (as compared to ASIC mining rigs).
Rather than chips churning on hash functions, the trusted computing functions allow each node to get on with other work until its timer expires, putting computing cycles into useful operations without wasted electricity.
PoET is a return to the Satoshi intent of “one-CPU-one-vote”. In its original form PoET exists near the unpermissioned end of the policy spectrum.
Any host that can provide certain cryptographic proofs about the correctness of its execution can publish a block. The sawtooth-core maintainers have begun adding scaffolding to support the more direct authorization models that consortia may require.
The first policies in this new framework include basic requirements of a validator such that it is running the correct version of the consensus algorithm and that it has a verifiably unique identity on the network (an anti-sybil feature of PoET).
The network itself validates authorization of each node as it joins the system. Once validated, those nodes and their authorization data are committed to a table on the ledger, called the Validator Registry.
Building on these new features, participants in a network can define arbitrarily elaborate (or simple) authorization policies. This authorization framework then lets the underlying PoET consensus algorithm be utilized across a wide swath of the public to private ledger spectrum.
While Ethereum is a public Blockchain, Hyperledger is a private blockchain. This means enterprises within the network know who is present on the peer nodes, unlike Ethereum.
Hyperledger is a permissioned network i.e., it has the ability to grant permission on who can participate in the consensus mechanism of the Blockchain network. Ethereum, on the other hand, is permissionless.
Hyperledger has no built-in cryptocurrency. Ethereum, on the other hand, has a built-in cryptocurrency, called Ether. Many applications don’t need a cryptocurrency to function, and using Ethereum there can be a disadvantage.
Hyperledger gives you the flexibility of choosing a programming language such as Java or Go, for preparing smart contracts. Ethereum, on the other hand, uses Solidity which is a lot less common in use.
Hyperledger is highly scalable — unlike traditional Blockchain and Ethereum — with minimal performance losses.
WHEN BASTARD ISLAMIC PAINTER MF HUSSAIN SHOWED SITA HAPPILY PREENING HER HAIR SITTING NAKED ON RAVANAs LAP AFTER ILLICIT SEX, THE COLLEGIUM JUDICIARY CRIED “ VERY GOOD. GREAT ARTISTIC FREEDOM”
WE KNOW THESE BASTARD DROHI JUDGES .. THEY HAVE RETIRED...
HINDUS HAVE WOKEN UP
RAJPUTS WILL DEFEND THEIR HONOUR
JUST WHO THE HELL IS THE FELLOW SANJAY LEELA BHANSALI— A MAN WITHOUT WIFE AND CHILDREN AT THE AGE OF 55 ? .
HIS SERVANTS HAVE BLOWN THE WHISTLE. WE KNOW WHO HE IS.
WE KNOW THE SEXUAL PREFERENCES OF MF HUSSAIN TOO.
Below: DROHI woman ( who looks like a man in a sari ) immediately called MF Hussain an ANGEL -- this KALANK celebrates when Bharatmata bleeds and is one of the most hated women in India.
CAPT AJIT VADAKAYIL