Yours Network’ to Use Bitcoin in Competition Against Steemit

Back in April, the lead developers of the “Yours Network,” Ryan X. Charles, Steven McKie, and Clemens Ley, releasedtheir vision to the public: a platform that places social media in the control of content creators through the power of Bitcoin.

Yours Network’ to Challenge Blockchain-Social Media Alternatives

A while back, Ryan X Charles left Reddit — where he briefly worked as the site’s Cryptocurrency Engineer — to produce the Yours Network. The goal of the project is to utilize Bitcoin to breathe new life into content creation and social interaction, such as commenting and picture sharing, by providing a financial incentive.

In an April blog post on Medium, Yours Network writer and developer Steven McKie explained:

The Yours Network team hopes that their project will fill the Bitcoin gap left by other popular networks Steemit and Synereo, which both use altcoins to monetize their platforms.

The use of altcoins has led many Bitcoin fans to dismiss these social networks altogether. The Yours Network hopes to leverage this skepticism and make their platform into a strong, bitcoin-based competitor to Steemit and Synereo.

US Representatives Submit Resolution Calling for Bitcoin Friendly Regulations

Elected representatives, Rep. Adam Kinzinger and Rep. Tony Cardenas have presented a resolution for pro-Bitcoin national policy. The resolution comes at a time when Bitcoin and its underlying blockchain technology continues to gain prominence in leading industries.

The national policy is aimed at creating a friendlier environment for the digital currency ecosystem and encourage technology development. The resolution gives a brief overview of the progress and potential use of non-fiat currencies like Bitcoin when it comes to security, transparency and verifiable trust mechanisms to complement the conventional payments systems. It also outlines the potential of blockchain technology in various sectors, including financial services, records management for healthcare, real estate and intellectual property rights management.

Even though the resolution is just meant to serve as a guideline for the future federal policies and legislation to the House of Representatives, it still signifies a growing interest in the digital currency technology among government representatives.

Blockchain technology has already disrupted the fintech sector. Many banks and financial institutions are actively pursuing the development of blockchain based solutions for their operations. The R3 Consortium already has many international banking majors and tech companies working together to achieve the goals. The resolution will also set a reference for the states working on digital currency regulations.

Other countries framing digital currency regulations include Japan, which recently assigned Bitcoin the status of a legal tender. Russia has also proposed a draft law labelling bitcoin as a foreign currency that can be bought in Russia but can only be spent overseas. Converting Bitcoin to Russian ruble is illegal in the country and carries up to 4 years of prison sentence.

Steemit Bridges Blockchain and Social Media, But How Does It Work?

When an obscure cryptocurrency with a total market cap of approximately $14m skyrockets to over $400m, people take notice.

But, when that cryptocurrency forms the backbone of a social media entity rewarding people for creating content, sometimes with thousands or tens of thousands of dollars for single posts, excitement and skepticism ensues.

Launched in March and gaining prominence in July, Steemit, a self-described "blockchain-based social media platform", has seen this level of notoriety in just its first few months of operation. To date, it has polarized blockchain experts while winning scores of newcomers to the technology.

The brain-child of Daniel Larimer, founder of BitShares, and Ned Scott, a former financial analyst, Steemit aims to provide a place for individuals to create content, promote the content they believe is good and comment on stories — all while earning money.

But Steemit is more than just a website for earning spare change.

It’s an actual blockchain built on a piece of technology developed by Larimer called Graphene, which allows for the deployment of application-specific blockchains.

Scott, in interview with CoinDesk, explained that the team only had the idea for Steemit back in January and, because of the Graphene framework, they were able to quickly roll the project out.

The rest, like most things in the blockchain space, is a bit difficult to explain.

The pop

For the first few months, there wasn’t much talk about Steemit.

While there were early miners and people contributing content, the real big bang didn’t come until 4th July. When the dam opened, $1.3m worth of stored-up blockchain-based currency called "steem" was released to those that had been participating on the platform.

Scott explained that, while all of the blog posts, comments and upvotes that had occurred on the site pre-July 4th were all on the blockchain, the rewards users had been promised for their contributions had not been distributed. The underlying idea was that the team wanted to continue testing the platform, finding bugs and fixing them prior to a rush of new people signing up.

He cautioned that, no matter how diligent the development team is, there are going to be bugs and that they wanted to ensure that Steemit was safe and secure for everyone.

Nevertheless, 4th July was a day that they had all been looking forward to.

Bank Of England’s RSCoin: A Hybrid Digital Currency To Improve Global Trade

RSCoin, a cryptocurrency controlled by the Bank of England for the purpose of strengthening the country’s economy and global trade, combines the benefits of distributed ledger technology with the control of traditional, centrally managed currencies, according to The Deal Room, a financial news website.

RSCoin was developed by University College of London researchers at the central bank’s suggestion.

While RSCoin uses cryptography – making it tamper-proof and resistant to counterfeiting – the digital ledger used by the newly-developed cryptocurrency is entirely held within the confines of the central bank, according to an earlier CCN report. RSCoin’s system will be accessible by a specific encryption key that will be in possession of the central bank. Some third-party collectives like commercial banks will be chosen by the central bank to partake in the central ledger.

Digital Currency Benefits

The bank recognizes that digital currency transactions can be executed more efficiently than traditional currency transactions and with more visibility. A fundamental difference between RSCoin and other cryptocurrencies is that the bank believes its oversight divorces RSCoin from negative characteristics associated with other cryptocurrencies.

The Bank of England is one of a few central banks that are developing their own digital currencies, going a step further than those financial institutions that are utilizing blockchain technology to improve operating efficiencies. Another central bank expanding its digital currency is the People’s Bank of China.

In the current environment of negative or low-interest rates, digital currencies could provide monetary policy tools not previously available, noted Matthew Commons, CEO of Cambridge Blockchain LLC.

The Bank of England believes distributed ledger technology allows the payment system to work in a decentralized manner. In this respect, RSCoin is not a departure from conventional currencies that are electronically recorded.

Bank Seeks to Expand RSCoin

The Bank of England hopes to gain wider acceptance for RSCoin. The currency can grow with the economy where other cryptocurrencies have limited circulation. The bank can immediately influence the money supply and address problems better than it can with traditional currency.

The bank will be able to grow the supply as the economy grows. The bank believes it can be used to generate more trade due to its efficiency.

A Better Reserve Currency

The bank also believes the RSCoin could be better suited as a reserve currency for global trade than the U.S. dollar, the world’s predominant reserve currency. A digital currency is more flexible, has a lower cost, and better facilitates world trade (due to better speed and not being impacted by exchange rates).

There are drawbacks to digital currencies. There is the potential for “double spending” fraudulent transactions in which two parties believe they are both being paid the same money. The Bank of England’s plan is to curb this fraud with oversight by a transparent entity.

A University College London publication noted that despite decentralization, RSCoin provides a transparent transaction ledger, a distributed system for maintaining it, and an internationally visible monetary supply. It called the model a “hybrid” that could become a common currency.

Also read: England’s central bank seeks bitcoin clone in RSCoin

Will Other Central Banks Follow?

Cryptocurrency advocates will object to the bank’s intrusion into the strict independence that characterizes other cryptocurrencies like bitcoin.

RSCoin’s long-term success, however, could be judged by the emergence of other central banks’ cryptocurrencies.

This hybrid system is no more disruptive than the U.S. decision to move off of the gold standard. The duality of flexibility and oversight offer the best of the new and the old.

RSCoin has used various computers with Amazon’s cloud computing system to test RSCoin. The testing provides an understanding of how the real world transactions will unfold. RSCoin is designed to last and is built for speed.

UK Gambling Regulator Clarifies Digital Currency Rules

The UK's gambling regulator has clarified its rules for digital currencies.

In an update to its codes of practice issued this July, the UK Gambling Commission (UKGC) outlined how licensees can implement appropriate policies for so-called cash equivalents, a definition under which digital currencies are captured.

The policy change appears to have occurred largely without fanfare, to date drawing only recent interest from gambling industry news sources such as Esports Observer.

Though short on details, the UKGC advises that the intention of the updated language is to protect consumers and mitigate financial crimes such as money laundering.

The report reads:

"Licensees, as part of their internal controls and financial accounting systems, must implement appropriate policies and procedures concerning the usage of cash and cash equivalents (eg bankers drafts, cheques and debit cards and digital currencies) by customers, designed to minimize the risk of crimes such as money laundering, to avoid the giving of illicit credit to customers and to provide assurance that gambling activities are being conducted in a manner which promotes the licensing objectives."

The update is scheduled to come into force on 31st October.

Notably, the comments come just a month after the UKGC highlighted digital currencies as an "area for continuing focus" in its latest annual report.

At the time, the UKGC indicated its plans to continue weighing how digital currencies would fall under its mandate to ensure fair gaming practices.

U.K. Government Awards Framework Agreement to Blockchain-As-A-Service Company Credits

The U.K. Government has awarded the first G-Cloud 8 framework agreement for the supply of distributed ledger technology to technology startup Credits.

Credit, which won the Best Blockchain Startup at the 2016 Europas Awards, is a blockchain platform provider supplying distributed ledger technology software and cloud-based services, with tools for building secure and scalable blockchains to power enterprise and public sector applications. In particular, Credits is the first blockchain platform provider with an offering exclusively for the U.K. public sector.

G-Cloud 8 is the current iteration of G-Cloud, an initiative of the U.K. government targeted at easing procurement by public-sector bodies of information technology services that use cloud computing.

The program, managed by the Crown Commercial Service, contains two key elements: It includes framework agreements with suppliers, from which public sector organizations can buy services without needing to run a full tender or competition procurement process; and it operates an online "Digital Marketplace" where public sector bodies can search for services that are covered by the G-Cloud framework agreements.

The G-Cloud framework agreement will allow organizations across the U.K. public sector, including central and local governments, the devolved administrations, health, education, emergency services, defense, and not-for-profits such as housing associations and charities, to use the Credits Blockchain platform-as-a-service (PaaS) without having to go through the time-consuming formalities of the standard public procurement process. Therefore, public bodies in the U.K. are more motivated to use the Credits Blockchain PaaS, which is now officially endorsed by the U.K. government.

“G-Cloud and the Digital Marketplace allow for a much more streamlined procurement process and represents a significant advance in the ability for smaller technology providers to sell into government, and, conversely, for government agencies to have greater access to technology to deliver better service to constituents in a more cost-effective manner,” Nick Williamson, co-founder and CEO of Credits, told Bitcoin Magazine, adding that approximately 80 percent of the companies selling on the Digital Marketplace are SMEs (small and medium-sized enterprises).

G-Cloud is not only intended to stimulate (or in blunter terms, subsidize) emerging technology sectors and companies, but the products and services offered under the pro[gram’s framework agreements are meant to be actually used by public bodies in the U.K. In fact, Credits is already working with potential users.

The Credits framework and tools enable enterprises, government and the public sector to build robust blockchains that address the challenges in establishing provenance, authentication and reconciliation. According to the company, the Credits framework is designed to be seamlessly and securely interoperable with legacy and other blockchain systems.

“We're in early talks with various government agencies on several initial use cases,” said Williamson. “We're engaging both directly with the agencies themselves but also through solutions partners who have experience building traditional technology for the public sector. These use cases range from using blockchain technology to more robustly manage data access and integrity to managing and authenticating identity to more robust regulatory reporting.”

In 2015, Bitcoin Magazine reported that the Isle of Man, where Credits is based, wants to become a leading Bitcoin hub, and interviewed Brian Donegan, head of operations for Digital Development and eBusiness at the Isle of Man Department of Economic Development. Donegan confirmed that the island is gearing up to become the ideal environment for digital financial technology businesses, entrepreneurs and developers.

“The Isle of Man is a world-leading FinTech and blockchain hub, and we are pleased to add Credits to a list of successful digital businesses that have established operations on the Island,” said Donegan about the G-Cloud framework agreement.

“The Isle of Man is a fantastic home for our headquarters, and the IoM Government is one of our best supporters,” Williamson told Bitcoin Magazine. “The work we have done with them laid the groundwork for our continued foray into utilizing blockchain technology to enable the public sector, and they are an instrumental part of our success.”

In January, Bitcoin Magazine covered a new report produced by the U.K. Government Office for Science and edited by Sir Mark Walport, chief scientific adviser. The report looked at the future of distributed ledger technology and advocated the deployment of blockchain solutions for a variety of public services. This and other recent initiatives of the U.K. government and central bank show that the country could be gearing up to replicate, on a larger scale, the initiative of the Isle of Man, and become a major blockchain hub.

“The U.K. is absolutely leading the way in blockchain in the public sector at this time,” said Williamson. “From the report published earlier this year by Sir Mark Walport to the projects being explored by entities by the DWP [Department for Work and Pensions], the U.K. government is being extremely proactive at a critical time in this fledgling industry.”

It makes sense to speculate about the impact Brexit could have on the U.K.’s ambitions to lead distributed ledger technology in the region, as well as on U.K. blockchain companies. As long as Credits’s main business is in the U.K., the company should be relatively safe from negative impacts.

“We don't anticipate our business being directly materially affected by the E.U. referendum,” said Williamson. “As a software provider (as opposed to a financial services company), we are not reliant on things such as the ability to passport licenses in order to operate. However, raising money may be marginally harder in the short run due to heightened uncertainty.”

Four New Bitcoin ATMs Make Coinsource America's Largest Operator

Coinbase has become America’s largest bitcoin operator after announcing it has installed four new ATMs in the month of July, bringing the total number to 42 across seven states.

The Texas-based company’s latest additions include new bitcoin ATMs in New York, Nevada, and Pennsylvania with one installed in Staten Island, one in Las Vegas, and two in Philadelphia.

Coinsource, CEO Sheffield Clark said:

We are extremely proud to be America’s number one Bitcoin ATM network, but it is our customers and the cryptocurrency phenomenon that deserve the credit. Bitcoin has proven to be one of the world’s highest performing investments. As Bitcoin becomes even easier to use and is accepted as payment in more and more venues, the list of users and use-cases has increased exponentially. From the beginning, our team wanted to solve the access problem for Bitcoin. Today, millions of consumers across the United States can find reliable, safe, instant access to a compliant Coinsource Bitcoin ATM nearby.

CCN has continually reported on Coinsource’s bitcoin ATM expansion, which sees ATMs in seven states: New York, New Jersey, Pennsylvania, Texas, Nevada, Louisiana, and California.

With more use-cases for bitcoin each day, Coinsource understands that more people will want to get involved with the digital currency, and the only way to do that is to ensure that new and existing bitcoin users have access to a bitcoin ATM.

According to Bitcoin ATM tracking site, CoinATMRadar.com, there are now 718 bitcoin ATMs around the world; however, the U.S. has the vast majority with 369.

Featured image from Shutterstock.

Bitcoin Drops Nearly 20% as Exchange Hack Amplifies Price Decline

The price of bitcoin fell sharply today exacerbating an already ongoing decline as global market participants reacted to news that one of the largest digital currency exchanges had been hacked.

Earlier this afternoon, Hong Kong-based exchange Bitfinex halted trading after discovering a security breach, which included taking its website offline and pausing all withdrawals and deposits. Representatives from the exchange told CoinDesk engineers were seeking to uncover issues at press time, though the company had confirmed roughly 120,000 BTC (more than $60m)was lost or stolen via social media.

In response, bitcoin prices fell to $560.16 by 19:30 UTC, $530 by 23:30 and $480 at press time, CoinDesk USD Bitcoin Price Index (BPI) data reveals.

This price was roughly 20% lower than the day’s opening of $607.37 and 27% below the high of $658.28 reached on Saturday, 30th July, when the digital currency began pushing lower.

Arthur Hayes, CEO of bitcoin leverage trading firm BitMEX, emphasized that this event had a clear and measurable effect on bitcoin prices.

He told CoinDesk:

"A high profile hack is not good for sentiment and curtails the ability for market makers to keep an orderly market."

Market observer and trader Jacob Eliosoff provided similar input, telling CoinDesk that the event had sparked a new wave of uncertainty.

"The big question will be how much was stolen and whether Bitfinex will make customers whole," he said.

Market participants traded more than 600,000 BTC via Bitfinex during the 30 days through 2nd August, Bitcoinity data reveals. This figure represented represented 1.6% of the more than 39m BTC transacted through various exchanges during the 30-day period.

The halving's impact

However, the price decline does not appear to be the sole result of the issues at Bitfinex.

Bitcoin prices experienced a gradual, downward movement over the course of several days, with market observers pointing to the halving of rewards on the bitcoin network as the cause. This event – which saw a 50% reduction in the mining subsidy on the network – generated significant visibility when it took place 9th July.

At the time, there was no major change in bitcoin prices, despite expectations that such a move may have been probable.

"It looks like traders got a bit ahead of themselves thinking that the price would go in a straight line after the halving," said analyst Tuur Demeester. "The halving is real and will have real effects."

One such effect is profit taking. Petar Zivkovksi, director of operations for full-service bitcoin trading platform Whaleclub, spoke to this development, noting his belief this trend was "in full effect" after the halving.

Still, he suggested the impact could be limited due to existing market support.

"There are still plenty of ‘stubborn’ longs open," he added.

Search for meaning

The drop below $600 may also indicate a change from the bullish sentiment that has so far characterized 2016.

For example, Joe Lee, founder of leveraged derivatives trading platform Magnr, stated that bitcoin's drop below $600 could indicate that the currency's long-term fundamentals are weak.

He emphasized that market observers would be watching bitcoin prices "to see how much of bitcoin’s steady growth has come from long-term holders".

Going forward, market observers also offered predictions on where bitcoin prices will go next. Now that the digital currency has breached $600, it will test $550, its low before the Brexit vote, said Hayes.

Tim Enneking, chairmain of cryptocurrency investment manager EAM, interpreted the recent price decline as evidence of a post-halving fallback, further stating that bitcoin will find support above $500.

Zivkovksi told CoinDesk that the digital currency’s decline below $600 “could signal the start of a medium term bearish trend powered by a strong long squeeze and a lull in bitcoin interest by the general public.”

While these analysts pointed to future weakness in the digital currency and potential declines, Demeester emphasized that not only did he not "see any sign why this bull market is over,” but he expected the price would "go a lot higher over the next 12 months".

Bitcoin Geocaching Game Takara Adds Support for Counterparty Tokens

The first ever Bitcoin geocaching iOS app, Takara, has added support for Counterparty assets, allowing users to hunt and plant bitcoin treasures around the world, using IndieSquare’s API.

Developed by Christian Moss of MandelDuck, users will have the ability to not only find Counterparty tokens, but also bitcoins when they get close enough to them. It’s similar to PokemonGo; however, the only difference is that instead of Pokemon, users will be collecting bitcoins and various tokens that represent different items such as tickets, coupons, company stocks or loyalty points.

Speaking to CCN, lead developer Christian Moss of MandelDuck, said that with Takara adding support for Counterparty tokens this was the start of digital property rather than virtual assets tied to a single use case.

I think it shows how game items can be liberated from a single parent game, for example using Counterparty, Spells of Genesis have made a game item that can be used in Spells of Genesis, used in SaruTobi, geocached in Takara, and traded on a decentralized exchange.

MandelDuck is also behind games such as SaruTobi, Game of Birds and KA-GE.

To prevent users from stealing bitcoin Takara, Moss explained that users should remember that once they drop the Takara, they are essentially giving up ownership of the coins.

He added:

Having said that, users always keep a copy of the private key to any takara they create so they can access the bitcoin at any point before it is collected by a user. This offers protection in case the app is removed by Apple or the service is stopped for whatever reason.

Takara Attracts Regular People to Bitcoin

The gaming world continues to be a popular pastime for all ages, but if an individual hasn’t heard of blockchain technology or bitcoin before, this could be the perfect way for them to experience an innovative technology.

Speaking to CCN, co-founder of IndieSquare, Koji Higashi, said that the popularity of PokemonGo was a good example of getting people involved in the gaming industry that would help to push the wider adoption of Bitcoin too.

He said:

If we can somehow insert blockchain into the equation, say being able to trade their Pokemon securely on the blockchain with other players, that alone can easily be a killer app for Bitcoin.

Not only that but in-game assets present the chance to create advanced video game economies containing value that is fungible in the real world. This is seen in games such as World of Warcraft Gold and Counter Strike where Global Offensive skins are used as value stores in the game economies.

Speaking to CCN, director of the Counterparty Foundation, Trevor Altpeter said that the use of Counterparty delivers an improved version for the gaming world.

Counterparty assets are an improvement over the existing model, offering enhanced functionality, while also reducing counterparty risk inherent to the current centralized custody of these assets that ultimately limits their utility and value in the real world.

Liberland: Bitcoin ‘Is Truly the Base of Our Economy’

Bitcoin.com had a chance to discuss some topics with the Liberland president Vít Jedlička concerning the many topics the micronation faces, the citizens use of Bitcoin and goals the group has for Liberland’s future.

Also read: The Digital Revolution Increases Sovereignty

The Free Republic of Liberland is a self-proclaimed micronation founded in April 13, 2015. The proclamation of the state’s independence was initiated by the Czech libertarian political activist, Vít Jedlička.

Located between Croatia and Serbia on the western bank of the Danube river, the tiny nation has brought about many discussions concerning micronations and secessions. Jedlička and Liberland’s citizens are strong proponents of free markets, and the use of the decentralized cryptocurrency Bitcoin are included among many other non-traditional beliefs.

“Bitcoin.com is supportive of Liberland both philosophically and financially,” and hopes the movement continues to be successful, Bitcoin angel investor, Roger Ver, said.

The Free Republic of Liberland Continues to Progress

Bitcoin.com (BC): Can you tell our readers about Liberland and how it’s going there?

Vít Jedlička (VJ): It is doing great! There is permanent settlement group working on preparing everything on moving in. They control territory now. Very soon you will be able to see beautiful drone pictures. We have now seventy-five representative offices around the world. I’m just flying back from Malta where we will have a very strong presence. Our legal system is close to completion, and I am proud it will be most libertarian one on this planet. We appreciate today’s approach of Croatia which strictly protects our borders we hope to develop a very friendly relationship with the new government that will be formed in September. We are extremely grateful for the support that Bitcoin.com and Roger Ver gave to Liberland. We hope that many more important supporters will have the courage to step out and will help Liberland to move forward.