Log inRegister

Coin News

internet
Bitcoin is a payment mechanism designed to level the playing field, driving out unnecessary costs and making it possible for even the lowest income members of society to participate in the economy. But it relies on a free and open Internet to do so.In the US, the rules governing Internet access are changing, threatening net neutrality – the principle that lets everyone use the Internet in the same way. Where would that leave bitcoin and other cryptocurrencies?Think of the Internet like a giant switched city road system, with packets of information traveling along it from different sources.The roads have a finite capacity, so digital traffic lights must switch the traffic, enabling everyone’s packets to get through at roughly the same rate. Net neutrality principles keep everyone’s packets whizzing through the network with the same priority.“But”, say telecommunications companies, “we built those digital roads, and the likes of Google, Facebook and Netflix are using them to make money for themselves. How about we charge some companies for the right to get their packets through ahead of others’?”It seems to make economic sense – unless you’re one of the companies providing those services, or one of the people using them. Unless those deals are cut for your online services, you might find them slowing down because other traffic is prioritised. But if the deal is cut, someone has to pay those extra costs.That’s not fair, say net neutrality advocates, some of whom would like the Internet to be regulated as common carriers, in a category known as Title II. This would force them to act in the public interest, making it impossible for them to cut backroom deals with content providers.New rulesThat kind of regulation doesn’t appear likely now. The Federal Communications Commission (FCC) lost a battle with Verizon earlier this year – and with it, the right to stop ISPs from throttling others’ traffic.Instead the agency, now incidentally headed by former telco industry lobbyist Tom Wheeler, promised to introduce new rules that would once again prevent ISPs from throttling traffic. It is in a 120-day public consulting period on that right now.But those rules may still allow ISPs and content providers to cut deals with each other to make each others’ traffic faster in exchange for payment. This angered net neutality advocates, who saw it as a way to push a two-tier system through the back door.It angered congresspeople too, a few of whom launched a bill this month to try and preserve net neutrality.What does all this have to do with bitcoin? Not much, if you listen to cryptocurrency software engineers. Potentially lots, if you listen to businesspeople and lawyers.The effect of net neutrality on bitcoinBitcoin developer Mike Hearn waves away suggestions that a system allowing ISPs to discriminate between different kinds of internet traffic could be used to throttle bitcoin:“Of course, it’s technically possible. Bitcoin does not try to hide its network traffic. But I do not think ISPs have any interest in doing so, as there’s no ‘Bitcoin, Inc’ that they could try to ransom. Besides, bitcoin doesn’t need much bandwidth the way most regular end users run it.”But Marvin Ammori, a first amendment lawyer and Internet policy expert at Stanford Law School’s Center for Internet and Society, warns that there could be problems ahead for payment systems like bitcoin.“If you need to pay AT&T, Comcast, etc. for quality of service (the ‘fast lane’),” you might end paying per transaction or a percentage of revenue and you have to pass on those costs,” warns Ammori, who studies net neutrality policy closely, and is a strong advocate.That means that paying AT&T etc adds transaction fees where the bitcoin network and cryptocurrency would have otherwise eliminated it.”Today, Ammori filed a letter with the FCC on behalf of mobile payment firm Dwolla, the Internet payment processor that shuttered its bitcoin business in November.The letter warns that the proposed rules could scupper payments by harming competition and innovation, and by making it more difficult to conduct real-time fraud detection.“When it comes to payments, net neutrality represents a powerful equalizer for small businesses that do not have the volume or frequency to negotiate reduced interchange fees with payment processors,” says the Dowalla letter.“Without neutral access to the Internet, such businesses would face higher costs or competitive disadvantages in reaching users, and therefore might not even be in a position to take advantage of low ­cost payment processing.”This isn’t the only letter complaining about the possible effect of a ‘non-neutral’ Internet on payments. Ammori also points to a letter, signed by what looks like half of the US tech venture capitalist community, warning the FCC of a chilling effect on innovation if net neutrality were to be threatened.We’ve been here beforeNick Grossman, a partner at Union Square Ventures with several bitcoin firms in his portfolio, warns that this kind of thing has happened at the time.“We’ve seen cases where ISPs have historically degraded and blocked service for certain protocols (bittorrent) and services (Google Wallet), so bitcoin is certainly in the realm of technologies that could be threatened if ISPs are able to block and degrade technologies at will,” he muses.He’s referring to December 2011, when AT&T Wireless, Verizon Wireless, and T Mobile all blocked Google Wallet from reaching subscribers. They were also, coincidentally, developing a mobile payment service of their own, called ISIS. There may not be a “Bitcoin Inc” for ISPs to go up against, but it is possible that under the right legal conditions, they could use a non-neutral Internet to protect their own interests.How could the bitcoin network protect itself against disruption from incumbent ISPs? The Bitcoin Foundation’s chief scientist Gavin Andresen thinks that it could all be done in software.“I don’t worry about net neutrality. Bitcoin runs nicely inside Tor and other censorship-resistant networking technologies,” Andresen says. “If some governments or ISPs did decide to try to censor crypto-currency network traffic I’m sure we’d see pull requests to make running over Tor or I2P even easier than it is today.”Hearn is already building Tor-style support into BitcoinJ, the Java implementation of bitcoin.Routing around censorshipAnother option might be to create an alternate network, providing a different physical layer altogether for sending packets to and from bitcoin users.Jeff Garzik’s BitSat network, currently under development, could be one solution. The network, which will see tiny cubesats in orbit, can distribute an accurate version of block chain data to notes on the ground, although this is really designed to protect against Sibyl attacks, and other attempts to disrupt the integrity of the block chain on the ground.The Bitcoin Card, proposed by the team behind the Mycelium wallet, was originally to have included wireless meshed networking, enabling bitcoin users to communicate with each other directly. However, this would require a critical mass of users, and the blog for the project hasn’t been updated since mid-2013.Other alternate networking concepts include the FreedomBox, an attempt to facilitate private, secure networking via the use of a hardware box installed residentially. There are also some community networks, which provide networking links to local communities using open wireless links and optical fibre. Guifi.net is a good example of a community network.These networks would still have to use an upstream provider that was sympathetic to net neutrality, but these do exist. Guifi connects directly to an Internet peering point, the Catalunya Neutral Internet Exchange Point (CATNIX).Such alternative networking initiatives seem far-fetched, however, in a world dominated by the likes of Comcast and Verizon. Building up community meshed networks is an ad hoc process, requiring significant critical mass to be effective.Still, according to some, the erosion of net neutrality is a clear and present threat for payment systems like bitcoin. Alexis Ohanian, a co-founder of Reddit and east coast ambassador at San Francisco-based incubator Y Combinator, is an activist for open Internet causes.“Payment systems need speed. And bitcoin in particular needs low transaction costs. My chief concern is that without Title II reclassification, ISPs either crush competitors or impose a tax on all online transactions that’d upset even Walmart and Target,” he says.“Given all the innovation we’re watching (and investing in) around cryptocurrencies and the future of payments, the free market should pick the winners and losers,” he concludes. “Not cable companies.”Internet cable image via Shutterstockcensorshipnet neutralityTor
Original author: Danny Bradbury

igot buy page
Bitcoin exchange platform igot, which is based in Australia but targets international markets, has secured funding from US serial entrepreneur and investor Jesse Chenard.Chenard has founded numerous startups in the internet and media sphere including Tremor Video, and was formerly CEO of in-image advertising pioneers Image Space Media.Igot co-founder Rick Day told CoinDesk that Chenard’s involvement will bring added value, not just in money but in experience.Day explained:“Frankly, the field is so new and interesting that it is attracting great minds and giving us the chance to work with people we might not have otherwise come into contact with.”While Day didn’t disclose the exact size of Chenard’s stake, he added that initially igot had met with larger investment funds from several continents and was “completely shocked with their proposals”, including at least one that would have seen igot absorbed into a larger corporate structure straight away.International approachigot’s largest customer bases at the moment are Australia and India, but the company has far more ambitious plans, with an aim to establishing itself as a popular exchange throughout Asia and beyond, to Europe and the Middle East.Day had a background in payment processing and formed igot with lawyer Patrick Manasse, after the two met in New York.They chose Australia as the location for their endeavor due to its convenience as a gateway to Asia, and Asia as a target market due to a lack of any integrated payment network covering the whole continent like the US’s ACH (Automated Clearing House) and Europe’s SEPA (Single Euro Payments Area).Maintaining independenceWhile igot is naturally delighted with the extra investment, Day said a sense of frugality forced by working in such a new field actually helped build the business.“We were originally 100% bootstrapped,” Day said. “Partially this was due to the fact that when we started very few people had heard of bitcoin. We spoke to banks and to investors but most people had no idea what we were talking about.”Still, Day said he was undeterred despite the challenge, recalling:“We squeezed every dollar, which in retrospect has engendered a certain discipline in our team. Unless we’re pretty certain that dollar is going to generate more than a dollar in revenue fairly quickly, we don’t spend it.”Eventually though, they preferred the flexibility of working with smaller individual investors, which allows them to stay independent and try entering a more diverse range of markets worldwide.“Too much money can also be the death of a company. There are a thousand great ideas coming out of our people every week, but the processes we’ve developed to evaluate and test these before moving forward is worth its weight in gold, and we probably wouldn’t have developed this discipline if we didn’t have resource constraints.”The founders have already made back all the money we put in “plus a seriously healthy profit”, Day said, which had all been reinvested into the company.“Now the only real question left is how fast can we grow. That takes a lot of concerns off the table.”Australia’s appealigot customers are able to fund their accounts with BPAY, Australia’s dominant electronic payment network for almost all bills. It also accepts direct debits from bank accounts, and Day said there had not yet been the kinds of hassles other companies had encountered with banks unilaterally closing accounts.He added that Australia had huge potential as a bitcoin hub. While he has seen his customers make major purchases like cars through igot’s exchange, some trades were made for major export items like coal.In an economy like Australia’s, still centered in large part on primary industries and the mineral resource exports, introducing bitcoin into the mix as a payment option could have massive implications.igot is also planning some financial innovation with bitcoin and promises new announcements with investment products are coming soon.Image via igotAsiaAustraliaIndia
Original author: Jon Southurst

darkcoin
Darkcoin has suffered new setbacks stemming from the launch of its masternode system for ensuring anonymous transactions, with the rollout requiring multiple hard forks and a reworking of the deployment strategy.The darkcoin development team’s launch of the masternode feature took place as scheduled on 20th June, but issues similar to those that plagued a previous attempt to deploy the masternode system reportedly resurfaced.The masternodes act as transaction bundlers and mixers, preventing network actors from discerning the origin and destination of transactions within the darkcoin network. This feature, known as DarkSend, incentivizes masternode participation through a dividend-like payment system.Lead developer Evan Duffield told CoinDesk that the process of hard forking a coin is risky, saying:“Certain features of the coin remain in active development and we will obviously encounter both triumphs and setbacks in that regard. It’s easy to have completely smooth sailing when you don’t do any hard forks, especially dealing with changes to the block chain itself.”The event had an impact on the price of darkcoin as well.New figures from Coinmarketcap indicate the price had risen from an average of $10 to more than $12 in the two days leading up to the hard fork. However, the price has since fallen below $10 as the fork issue resurfaced.At press time, the price of a single darkcoin (DRK) was roughly $9.60.Masternode malfunctioningIn a launch post-mortem, Duffield stated that a key function of the masternode protocol was malfunctioning, creating a situation wherein blocks were being rejected by some, but not all, of the network.Duffield wrote that the problems were not as serious during the second launch, but that the team opted to disable the masternodes as a precaution, saying:“Two blocks are solved at nearly the same moment on the network, and both are propagated and accepted by the network. In the current implementation, both blocks have the same hash, but in these blocks, there’s some discrepancy about who to vote for.”Some of the masternodes, Duffield explained, inaccurately processed select blocks as fraudulent due to an inability to tell certain blocks apart from others. This led to the creation of forks and necessitated a hard fork to disable the masternodes.Modified releaseOn the Darkcoin Talk forum, Duffield outlined the development team’s response to the masternode issue. A central part of the plan involves turning off a setting that triggered the block rejection.As Duffield explained in the post, the action will allow the team to see how the network functions with masternodes without the risk of forks being created for the same reason as before.He wrote:“In past launches, all problems have come from the client checking the block to possible forging of masternode votes. With enforcing mode off, the system will still detect these and report them, but it won’t reject the block. So once we stop seeing these messages (except for valid forged blocks) the system is ready.”The darkcoin development team has also added two new members to support the effort.Speaking to CoinDesk, Duffield stated that anyone interested in helping out with the testing and deployment process for the masternodes should reach out for more details.Image via DarkcoinaltcoinsDarkcoin
Original author: Stan Higgins

cointerra
UPDATE (24th June 21:18 BST): Comments from CoinTerra CEO Ravi Iyengar have been added.A class action lawsuit filed against bitcoin mining hardware manufacturer CoinTerra may end with an out-of-court settlement, as both sides in the case have indicated interest in resolving the case before it moves to court.Ars Technica reported that CoinTerra sought permission from a US judge in a Northern California district court last week to give it more time to arrange mediation talks.The suit was originally launched in April by Lautaro Cline, a customer from Oakland, California who said he received low-quality mining equipment and, as a result, suffered profit loss. Furthermore, the hardware reportedly arrived past the promised delivery date, which Cline has alleged exacerbated these problems.The plaintiffs are seeking to name CoinTerra financially responsible for mining profit losses suffered by miners that have entered the class. This includes appropriation of CoinTerra profits for the benefit of miners, as well as compensation for prior damage.In a statement, CoinTerra CEO Ravi Ivengar declined to comment on the case, but reiterated the company’s commitment to its customers, saying:“While we do not comment on specific dealings with customers, we are committed to providing one of the fastest turn-key Bitcoin mining machines in the world. We are one of only a handful of vendors that has delivered a fully-operational product, and at an industry-leading specification. We have shipped 10,000+ machines and the vast majority of our customers are extremely satisfied with the product we delivered.”Suit alleges misrepresentationAccording to the April filing, the plaintiffs accused CoinTerra of breach of contract and violation of both the Unfair Business Practices Act and the Violation of False Advertising Law.Specifically, the company is accused of lying about the processing capabilities and energy consumption rates of two of its mining products. CoinTerra allegedly misrepresented delivery dates to a number of its customers who are now part of the class. These dates include delivery times for products that were meant to compensate customers for prior delays.The filing noted the specific hardware problems in Cline’s CoinTerra product. His TerraMiner IV produced 1.6 terrahashes per second (TH/s) in mining power, compared to the 2.0 TH/s promised by the company. Further, the mining product consumed 2,100 watts instead of the 1,200 originally advertised.Ultimately, the file states that CoinTerra acted in bad faith to its customers, saying:“CoinTerra’s conduct was injurious to consumers, offended public policy, and was unethical and unscrupulous. CoinTerra’s violation of consumer protection and fair competition laws in California and other states resulted in harm to consumers.”Cline’s lawyer, Edward Mullins, said a private mediation date has not been set. However, he said that he hoped the process would begin soon, with a settlement struck ideally before the end of the summer.Mounting problems for mining companiesAllegations of customer mistreatment have dogged CoinTerra for months. Customer complaints and requests for refunds resulted in a large backlog. The company later offered coupons as compensation for consumer frustrations.CoinTerra is not the first mining hardware maker to face legal challenges this year.California-based HashFast fended off numerous legal challenges from customers and investors this year. The company fought being forced into involuntary bankruptcy in late May.Ultimately, HashFast entered Chapter 11 bankruptcy earlier this month.In February, Butterfly Labs faced the prospect of its own class-action lawsuit. In total, nearly 300 complaints have been submitted to the Federal Trade Commission (FTC) regarding the Kansas-based company since 2012.class actionCointerralawsuit
Original author: Stan Higgins

zipzap
Global cash transaction network ZipZap has formally reinstated its bitcoin buying service at more than 20,000 partner retail locations in the UK.The news follows an abrupt halt of the company’s digital currency services this March, when its UK-based payment processor PayPoint said it would require more regulatory clarification regarding bitcoin to support the offering.This resumed service is the result of ZipZap’s new partnership with payments acceptance network Payzone. The Ireland-headquartered company has thus far indicated it does not share PayPoint’s reservations about the burgeoning payment technology.Mark Mellor, director of sales and marketing at Payzone, said in the announcement:“We are very excited to partner with ZipZap and participate in the digital currency economy.”Alan Safahi, founder and CEO of ZipZap, further told CoinDesk that the move marks an end to service interruptions for in-store digital currency buyers. He explained that the service has also been retooled to factor in feedback from a rocky first launch with PayPoint in December, stating:“When we launched, and we had a lot of people going to stores and trying to buy bitcoin and they had trouble communicating to the retailers. [...] In order to do this right, we’ve had to do some marketing to the agents and employees. So, this time around we hope to a better job of handling the messaging.”Expanded servicesThe news finds ZipZap aiming to expand its bitcoin services in line with its wider goal of providing both cash-in and cash-out services to digital currency consumers around the globe.Safahi suggests that beyond the troubles in the UK, ZipZap has global expansion in its sights, stating:“Overall, we’ll have about 35 countries we’ll have cash-in through our network to buy bitcoin. In the next few months, we’re also going to be launching [new] countries for cashing out.”This network, the CEO suggests, will be used to help position ZipZap to influence bitcoin remittance. While he was short on the details, he indicated that the company is currently examining major remittance markets and opportunities for tapping into the demand for potential bitcoin services there.A full list of countries where ZipZap services are available can be found on its official website.Long-term effortSpeaking more broadly about macro developments in the bitcoin space, Safahi explained that he was not surprised by the decision of PayPoint to suspend its bitcoin support.He believes such complications with financial partners will be common for bitcoin businesses, at least in the short term, even if the ecosystem is primed for long-term success.Safahi explained:“In time they’ll all come aboard. It just takes different companies, different kinds to come onboard to understand the great innovation that bitcoin is, [...] not just the currency but also the platform itself.”Image via ZipZapcashEuroperemittanceUKzipzap
Original author: Pete Rizzo

hive web,
Bitcoin wallet provider Hive has officially launched a new HTML5 web wallet.Called Hive Web, the offering boasts secure password generation and BIP32 and BIP39 support, which it says will provide end-users with better privacy and simpler backups.The web wallet also now supports popular alternative digital currency litecoin, the first of what the company says will be more updates for the altcoin community.Pleased to announce the launching of the Hive Web Wallet today! http://t.co/lUffYeq51k— Hive (@hivewallet) June 24, 2014Dogecoin support, a company representative indicated on reddit, is also being planned for future release. The news follows Hive’s May update to its Android bitcoin wallet, which arrived with the ability to host third-party bitcoin applications.User emphasisIn addition to multi-currency support, the HD wallet also includes a “waggle” feature that allows users to find local app users with whom they can complete digital currency trades. However, the development team stressed that despite such features, the app aims to be simple and user-friendly, writing:“All we ask you to do is to keep your passphrase safe. We take care of the rest, and you can always access your coins anywhere, even from other wallets that implement the same specs.”Hive launched in September 2013 with the goal of catering to new bitcoin users, and developers have been discussing possible litecoin integration since this time.Inside Bitcoins appearanceThe announcement coincided with Hive’s appearance at Inside Bitcoins Hong Kong, an ongoing digital currency conference focusing on the ecosystem’s opportunities and challenges in Asia.Today, Hive founder and Humint CEO Wendell Davis was in attendance to speak about his project for a panel discussion entitled ‘Bitcoin vs Altcoins’. On 25th June, he is also expected to attend a startup pitch competition.For more on the event, visit the website here.Image via HiveAndroiddogecoinHivelitecoinwallets
Original author: Pete Rizzo

Italy chamber of deputies
Robocoin CEO Jordan Kelley will speak about bitcoin in a public hearing at the Italian parliament in Rome later this week, before demonstrating one of his company’s bitcoin ATMs via live video stream.The 26th June meeting called ‘Bitcoin in the Real Economy’, will form part of the fourth annual ‘No Cash Day’ – a trademarked event promoted by Italian Parliament member Sergio Boccadutri and organized by CashlessWay, an e-payment lobby group.The news comes soon after the developers of Italy’s first home-grown bitcoin ATM, CoinCapital and Bit-Wallet, met with a dozen lawmakers and representatives of other institutions at the country’s parliament on 11th June.“[Bitcoin in the Real Economy] is an opportunity to help educate and have meaningful conversations with Italy’s influential government. Italy is full of cultural tastemakers and has a rich history in banking and finance. These all support Robocoin’s goal of helping proliferate bitcoin,” Kelley explained.Group effortAt the public hearing, Kelley will be joined by industry leaders from Hyperion, UniCredit, the Italian Banking Association, MasterCard, and others.Present will be lawmakers, bankers, public utility representatives and other entrepreneurs debating bitcoin’s potential in the nation’s economy, including recommendations for a legal framework to aid integration.Participants will also examine a variety of cryptocurrency-focused topics, including business opportunities, tax implications and controls to avoid criminal activities.Streamed demoAfter his presentation at the parliament, Kelley will leave and then rejoin the event via live stream to activate Italy’s first Robocoin ATM, demonstrating its anti-money-laundering (AML) and know your customer (KYC) technology.The machine will be located at Luiss EnLabs, a leading Italian incubator housed inside Rome’s Termini station.Back in April, Robocoin temporarily installed one of its bitcoin ATMs in Rayburn House on Capitol Hill in Washington, DC. More than 50 members of the US Congress lined up to test out the machine.Hurdles to acceptanceFranco Cimatti, president of Bitcoin Foundation Italy, explained that, while bitcoin may be slowly increasing in popularity in the country, it still has some large problems to overcome.“The problem in Italy is that cashless payments and the Internet are still not present throughout the country, which makes it difficult for bitcoin to be accepted,” he said.Another issue, he said, is that many business operators are afraid to accept bitcoin because they think that the state will interfere.“Because of this, many are requesting a statement from the state that indicates the lines and limits that a business operator can’t go beyond,” Cimatti explained.Image via Luciano Mortula / ShutterstockATMsEuropeItalyjordan kelleyregulationRobocoin
Original author: Jon Southurst

BTC China Picasso 1
Popular exchange BTC China has added new features and an upgraded interface to its Picasso ATM mobile bitcoin wallet, including a ‘Sell for Cash’ function that allows anyone to become a ‘mobile ATM’ and sell bitcoins anywhere in the world with the press of a few buttons.CEO Bobby Lee announced the new features this morning while delivering the keynote address at the Inside Bitcoins conference in Hong Kong, where competitors OKCoin and Huobi are also revealing new services.The app is designed as much for use outside China as inside, with support for eight major currencies and ten languages.Other featuresThe ‘ATM’ function shows current market rates and allows users to set their own profit margin on the trade. BTC China receives a 0.5% transaction fee on a sale, deducted from the bitcoin balance.Picasso mobile also has the standard send and receive functions. As an HTML5 mobile web app, it was never subject to Apple’s previous barring of bitcoin wallets.BTC China describes the surrounding infrastructure as offering users “the highest level of protection for their bitcoin assets”, with a two-password option and all digital currencies stored offline.Users more sure of their ability to not lose a device can be less cautious, enabling a ‘Trust This Device’ feature that does not require the main password every time the app starts.BTC China Picasso 2Overseas driveBTC China, which was China’s first bitcoin exchange and the first to receive venture funding, has been noticeable lately in its efforts to appeal to international customers due to China’s own fractious relationship with digital currency trading.Its website interface currently offers direct trades between Chinese yuan and both bitcoin and litecoin, and also between BTC/LTC. Following the Picasso ATM app’s example, there are “plans for more aggressive international expansion” in the near future.The Inside Bitcoins Hong Kong conference is a two-day event, which continues on 25th June.AsiaBobby LeeChinamobile
Original author: Jon Southurst
  1. Minnesota Senator to Spearhead Bitcoin Public Awareness Effort
  2. Canada Amends National Law to Regulate Bitcoin Businesses
  3. Could Jersey Rival Bali as the Next Bitcoin Island?
  4. Why XPRIZE Founder Peter H. Diamandis is Swapping Gold for Bitcoin

Page 1573 of 1655