Beware: Latest Ledger Email Phishing Scam Making The Rounds

Beware: Latest Ledger Email Phishing Scam Making The Rounds

Beware: Latest Ledger Email Phishing Scam Making The Rounds

By Martin Young – Last Updated Oct 27, 2020

The crypto industry is flooded with scammers preying on the vulnerable, and their latest attempt is to dupe hardware wallet Ledger consumers into revealing their credentials or downloading malware.

Consumers who have purchased Ledger hardware wallets have been waking up to nasty emails claiming that their crypto assets are in danger of being stolen. It is the latest in a long list of phishing attacks designed to lure the uninitiated into divulging their secret phrases or downloading malware.

The first round of spurious emails was asking for the 24-word recovery phrase and Ledger responded with a warning emailed to customers confirming that it would never ask for this.

The second round of emails is a little more insidious as they claim that a data breach on Ledger servers has affected the wallet associated with the target email account. It asks users to download the latest version of Ledger Live, via an email embedded link, and reset their PIN numbers.

It was reported that Ledger did suffer a data breach in July resulting in 9,500 users having their personal information compromised.

 

Sneaky Social Engineering

On initial glance, the email looks genuine but there are a number of key giveaways that are easy to spot for the trained eye. Firstly, the domain name is not from ledger.com but legder.com

Secondly, hovering over the link in the box (but being careful not to click it) reveals a dodgy URL; https://url9594.legder.com which is likely to result in the downloading of malware which may be able to log keystrokes, steal credentials, or mine cryptocurrency.

Crypto investors and traders have already taken to Twitter to share this phishing scam and warn others about it;

*** SCAM ALERT***
I just received this in my inbox. A new phishing scam has been send out claiming there are problems with @Ledger live and a call to action to download “the newest version of Ledger live”.

Please share this in order for as many people as possible to see this… pic.twitter.com/xOKUBoKI63

— Young And Investing (@QuintenFrancois) October 25, 2020

Additionally, Ledger itself has published a list confirming knowledge of these phishing attempts and reinforcing the premise that funds are safe providing the recovery phrase is;

Remember, your assets are safe if your 24-word recovery phrase is. We’ve come up with a short list of tips and tricks to help — we know it’s quite Phishy out there. (1/5)

— Ledger (@Ledger) October 26, 2020

The company stated that nobody, including Ledger, should ever ask for the PIN number of recovery phrase, but this latest email was a call to action prompting the clicking of a malicious link.

 

Risk Mitigation

Hardware wallets, such as those produced by Ledger or Trezor, take an extra step to mitigate these risks. Ledger stated that crypto-assets cannot be sent from a Ledger device unless the user physically connects it to the computer and verifies the transaction on both the computer and the device.

If malware is controlling the PC or smartphone, it cannot control the Ledger wallet, even when it is plugged into the computer.

Article produced by Martin Young

https://cryptopotato.com/beware-latest-ledger-email-phishing-scam-making-the-rounds/

 

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Heiko Closhen, Entrepreneur

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How Asia Is Unbeatable In Blockchain Tech

How Asia Is Unbeatable In Blockchain Tech

How Asia Is Unbeatable In Blockchain Tech

By Giorgi Mikhelidze

Far away from the western eyes, the blockchain system in Asia is growing. Every project, start-up, and new idea is based on blockchain. Asia is seeing the future in blockchain and they are not mistaken. Every time something is trending in the world, in Asia it was popular five years ago. Meaning that they are always looking forward and their innovative ideas are always changing things for the future of the whole world.

A vibrant ecosystem of the public and allowed system has boomed in Asia. The blockchain is protected and embraced by the governments in Asia. It’s not only China that is welcoming the blockchain system in the country but other countries too. Everyone across southeast Asia is officially hooked with the idea of blockchain. The blockchain system is already used in different industries. For example aviation – China and India use blockchain for deploying the visitors from each other. It is speeding up immigration for millions of people.

Asia loves blockchain because the new technology and creative ideas are important for them. They know that in the future everything will work based on technology. Solving any kind of problem with blockchain is not a hard task, so they are adopting this system as much as it is possible. Singapore is also using a blockchain system. In fact, it is one of the greatest examples of using blockchain. The biggest fintech festival in the world celebrates fintech that is using blockchain every year.

The important part of using blockchain in China is the fact that most people are trading. They know that the future of the financial world is in trading and because of that regulations and proper protection is needed. Some of the largest crypto exchanges, as well as the largest crypto miners, are located in China. China is also the first country that will have a CBDC (central bank digital currency).

Japan has pretty much fully integrated itself with Bitcoin as almost everything can be bought with BTC there. Singapore is an unstoppable fintech machine where the most number of fintech startups are going. Blockchain is a fintech so it's pretty obvious why this is an important location.

The situation in Singapore is so advantageous in the fact that the list of 10 best Asian forex brokers contains nearly 8 companies located in this particular city. FX trading is also considered as some kind of fintech so it's not too surprising. It is almost becoming a cultural thing. Singapore is looking at bitcoin and foreign exchanges as a business and where the economic value can be driven.

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Interest In Technologies

One of the main things, why people in Asia are so interested in blockchain technology and financial technology is that they are extremely interested in new tech. For the blockchain adaptation, solid IT support is required. Korea possesses one of the fastest internet speeds in the world, which means blockchain and other new IT tech can be flawlessly completed.

Asians are using blockchain in this pandemic too. To secure data hackers and cyber thieves, many Asian countries decided to use blockchain as the protector during the coronavirus pandemic.

Blockchain technology has become more widely embraced in various areas of different fields. One of the most important is of course the financial services industry. During the coronavirus pandemic, people were stuck in their homes.

They needed online payment methods that will not cost too much of their money because everyone is saving money in these uncertain times. That is why the use of fintech and online payments rose during the pandemic. Everyone was buying stuff online because they could not go out to do something they wanted.

The recent digital currency electronic payment (DCEP) enterprise by the People’s Bank of China has put blockchain and crypto back on the radar screen. Home to the largest FinTech community in Hong Kong with well over 300 FinTech start-ups and companies in the community. Cyberport is pleased to be powering Hong Kong Blockchain Week to examine the latest improvements of blockchain and showcase Hong Kong’s abilities in this area.

Asia is always drawing blockchain talents together to exchange ideas, to co-create business occasions as well as to lead the region in embracing blockchain and they are doing a great job in it because they are best in adopting the blockchain system.

Article produced by Giorgi Mikhelidze

https://cryptodaily.co.uk/2020/10/how-asia-is-unbeatable-in-blockchain-tech

 

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Heiko Closhen, Entrepreneur

XRP-friendly London Could Be Ripple’s New Home

XRP-friendly London Could Be Ripple’s New Home

XRP-friendly London Could Be Ripple's New Home

By Adriana Hamacher

Ripple is weighing moving its headquarters from San Francisco to London, as it seeks regulatory clarification for its cryptocurrency XRP. Japan and Singapore are also in the running. 

In brief

  • Ripple is considering a move to London, amid regulatory uncertainty in the US.
  • The status of its cryptocurrency is in dispute on its home turf.
  • The UK has offered Ripple assurance that XRP would not be considered a security.

In an interview with CNBC today, CEO Brad Garlinghouse said that the UK regulator, the Financial Conduct Authority, has provided Ripple with assurances that it doesn’t consider XRP to be a security—a key source of contention in its home market. Instead, the FCA deems XRP to be a currency, he said, and ”with that clarity, it would be advantageous for Ripple to operate in the UK.”

The $10 billion fintech company has been considering several potential new jurisdictions, and Garlinghouse revealed that the legal status of the XRP cryptocurrency is key in any decision. Japan, Singapore and Switzerland are also under consideration.

 

In search of a clear taxonomy

Ripple has long chafed at the US Securities and Exchange Commission stance on cryptocurrencies. The SEC has indicated that Bitcoin and Ethereum are not securities, while the status of XRP remains less clear.

The firm is fighting a legal battle with investors who claim that XRP is an unregistered, and illegally issued security and that Ripple is making misleading statements—allegations which Ripple denies.

Being labelled a security would also place XRP under stringent rules, with big repercussions for Ripple. While claiming to be independent of the cryptocurrency, Ripple owns more than half the XRP tokens in existence. 

Ripple says it holds the bulk of these funds in escrow, and mainly uses the digital asset for its financial services clients to transfer funds quickly and cheaply, but it also sells holdings regularly

“Regulation shouldn’t be a guessing game,” Garlinghouse said, in a separate interview with Bloomberg on Wednesday. In the US, he explained, the regulatory environment meant that cryptocurrencies could be classified as currencies, commodities, property, or securities. “You have different pockets of regulation from different parts of the government.”

But he stressed that the company would prefer to stay in the US. 

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He praised Japan for regulations that were in “contrast'' to the situation in the US and pointed out Japan was one of Ripple’s fastest-growing markets, thanks to ties with Japan’s SBI Holdings

Part of the SBI Group, the financial conglomerate runs dozens of companies involved in financial services, asset management, and biotech, as well as SBI Ripple Asia.

Asked whether Ripple was disappointed that XRP was not selected by PayPal, which recently announced it would offer support for four cryptocurrencies, Garlinghouse again blamed regulatory uncertainty. 

He made his latest remarks, two weeks after Ripple’s Executive Chairman Chris Larsen first suggested that the firm could abandon the US

Article produced by Adriana Hamacher

https://decrypt.co/46136/xrp-friendly-london-could-be-ripples-new-home

 

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Heiko Closhen, Entrepreneur

How Blockchain Can Help In The Tokenization Of Real-Life Assets

How Blockchain Can Help In The Tokenization Of Real-Life Assets

How Blockchain Can Help In The Tokenization Of Real-Life Assets

By Oluwatobi Joel

Tokenization involves dividing assets digitally for accounting and trading. Digital tokens are issued through tokenization are recorded on the blockchain. A unit of the token issued through tokenization proves ownership of real-life assets. Tokenization is popular among investors because tokenization enables liquidity of hard assets.

A small unit of real-life assets like gold, silver, houses, or alternative assets like artwork can be transferred from one person to another on digital platforms.

 

Tokenization enables the division of assets.

A token unit can be divided into up to thousands of a part to be traded on a peer to peer networks. The price of one ounce of gold is around US$ 1,900 today. Some investors might be interested in owning a part of Gold but don't have such an amount to invest in Gold. The ownership barrier is removed through tokenization. A user who invests in a tokenized gold can have less than one-thousandth of gold and enjoys the same benefit of owning a real-life asset.

Creative works like artworks can also be tokenized through blockchain, with each unit digitally representing a part of the artwork, dividing the artwork in real-life will destroy the work.

 

The double benefit of tokenization 

Tokenization gives investors the benefit of owning a blockchain asset and owning a real-life asset too. The tokens issued can be transferred through blockchain. Transactions through blockchain are transparent, fast, auditable, and removed intermediary. The tokens are also representing real-life assets.

For example, a transaction involving a silver asset back tokens can be transferred from the buyer to the seller within seconds on the blockchain network. The value of silver is still maintained. If it were to be done in real life, cars guided by security personnel might be needed to complete such a transaction.

 

Tokenization helps to solve the volatile problem.

The cryptocurrency market is very volatile. The price of a coin can drop by 80% in one hour. Asset-backed tokens ensure price stability. If a token unit is represented in silver and the price of the token reduces on the cryptocurrency exchange. Since the price is tied to silver, the token will never go down beyond silver, which ensures that the tokens will not be affected by the cryptocurrency market’s high volatility.

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Problems of tokenization

The major problem of the tokenization of assets is fraud. It is difficult to defraud investors on the blockchain, but it's easier in the real life. Because assets backed tokens are divided into the tokens and the real-life asset.

Many malicious scammers issue tokenize projects that are not backed by any assets, as told to investors. This happened a lot during the 2017 ICO pump. Many projects that offer tokenized assets ended up to become pump and dump scams. Investors discover that there is money invested in real-life assets, the owners of the project exit leaving worthless tokens for investors.

Perhaps, a smart contract that will track real-life assets in the future, the problem of fraud is the major problem of tokenization today.

 

Conclusion 

Tokenization is one of the most important benefits of blockchain technology, units of assets can be represented digitally on the blockchain network by a smart contract, and they can be traded. However, tokenization is not without its challenges. Many projects having tokenized assets have the tokens without the assets. Many inventions will take place in the coming years to improve tokenization. For now, it's a blockchain technology innovation that has not been fully explored.

Article produced by Oluwatobi Joel

https://cryptodaily.co.uk/2020/10/tokenization-in-blockchain

 

ecosystem for entrepreneurs

 

Heiko Closhen, Entrepreneur

Bitcoin vs Ripple Explainer

Bitcoin vs. Ripple Explainer

Whether you’re new to the world of blockchain technology or are simply looking to sharpen your sensibilities when it comes to distinguishing the market’s key players,

there is always more to learn. Cryptocurrency trading is fueled by hype and that means that new players are always popping up and disappearing. Bitcoin remains the constant staple in this everchanging landscape and also serves as a useful benchmark against which to understand and evaluate other actors. If you’ve got things like a graph of bitcoin price history saved to your bookmarks, there’s a good chance you’ve also encountered the name Ripple. If you are interested to learn how it stacks up against its forebearer, read on to discover the similarities and differences between Bitcoin and Ripple. 

The risk remains the same

One thing to clear up right off the bat is that all cryptocurrencies exist in a volatile and very speculative market. Although a lack of regulations is part of the draw, it also means that anything goes and there are really no guaranteed bets. Ripple and Bitcoin are both parts of this ecosystem, so keep in mind that if you’re thinking about investing in either, or any blockchain cryptocurrency for that matter, you should go in ready to potentially lose your complete initial investment. When it comes to investing in any cryptocurrency, you’d be best to hedge your bets and only put forth capital that you would be comfortable without. 

Ripple 101

When thinking about Bitcoin, most people understand it as a digital currency that can be used to purchase a variety of goods and services in the online marketplace. Therefore, the number one thing to understand about Ripple is that it serves a slightly different function. Simply put, Ripple is a system for currency exchange, payment settling, and remittance that can be used by payment networks and banks to provide higher transparency and security. Unlike Bitcoin, Ripple was never designed to be an independent method of payment. One of the biggest advantages of Ripple is that it allows for a fairly seamless transfer of assets that plays out in near real-time, providing more peace of mind for those involved in the transaction. 

Ripple doesn’t use blockchain

Another important distinction to make between Bitcoin and Ripple is the fact that Ripple doesn’t use blockchain to fulfill its function. Unlike Bitcoin, Ripple works through a network of validating servers and crypto tokens. The tokens are often referred to as Ripples but are formally called XRP. These are the actual cryptocurrency being exchanged in Ripple, which uses a distributed consensus ledger. 

A closer look at XRP tokens

In terms of how Ripple replaces standard settlement systems, it is useful to think of XRP tokens as a replacement for US dollars, which are frequently used as a middle ground currency for exchanging others. Due to established standards of exchange and the regulations in place, using US dollars not only takes considerably more time but is also accompanied by the dreaded currency exchange fees. On top of costing more than most are happy to pay, standard international transfers can sometimes take three days or more to process. Enter the XRP token. Completely supplanting the process, the value of the assets being exchanged are first converted into XPR (as opposed to USD), allowing for fees to be wiped away and the waiting time to be reduced from days to mere seconds. Returning to the Bitcoin comparison, it is worth noting that Bitcoin transactions tend to take around 10 minutes, and although this is certainly less than three days, it is still significantly more than the five-second transaction rate Ripple can achieve. 

Different origin stories 

Unlike the more mysterious emergence of Bitcoin, which is currently maintained by a team of dedicated developers and not tied to any government, bank, or third part, Ripple is more mainstream. Founded in 2012, Ripple was developed by an actual company and had set goals outlined from the get-go. This more standard entry onto the world stage has likely been one aspect that has helped make Ripple more palatable for major financial institutions. Santander and Fidor Bank are just a few of the big names who have said that they are in the process of testing or even implementing various applications of the Ripple Network payment apparatus. 

No mining for Ripple

Another difference that might be hard for Bitcoin enthusiasts to wrap their heads around is that Ripple was not, in fact, designed to be mined at all. An important part of the Bitcoin ecosystem, miners of the cryptocurrency will typically be rewarded for their efforts in the form of a new Bitcoin. Ripple, meanwhile, is pre-mined. There are currently around 38 billion XPR tokens populating the market. The remainder resides in Ripple labs and will be released onto the market in incremental amounts. For further information on Bitcoin payments, check out dchained.

Article Produced By
Globalcoin

https://globalcoinreport.com/bitcoin-vs-ripple-explainer/

Heiko Closhen, Entrepreneur

Bitcoin Mining with MiningJOY: A Perfect Solution to Fight against Inflation

Bitcoin Mining with MiningJOY: A Perfect Solution to Fight against Inflation

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MiningJOY has a state-of-the-art computing power backup and global decentralized mining farms. The uptime for all miners is over 99%, as you can see from the following screenshot of the backend managing broad, which is developed by its in-house maintenance team consisting of both software and hardware elites. MiningJOY’s advantage features real-time, viewable computing power and transparent bills, a professional operation team hand-selected from a small number of public companies in the IDC industry, and backup computing power reserves to resist greater suspension risks. MiningJOY has multiple mining centers across North America, Northern Europe, Central Asia, and Southeast Asia. The price of computing power on the market has spiked due to huge demand, yet MiningJOY cloud computing power has maintained a low price relative to the market price and has excellent security performance, which serves to better preserve the maximal mining outputs for its clients.

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Earn passive income with Quadency TRADING BOT. Connect Binance account and use Quadency bot for 6 MONTHS COMPLETELY FREE. Hurry up, this deal is not around for long! MiningJOY boasts large-scale miners based in distributed locations across the globe, equipped with professional operation and maintenance teams, and top-of-the-line miners. MiningJOY provides users with a one-stop efficient cryptocurrency mining service, going beyond merely Bitcoin mining products, which however, constitutes more than 90% of its asset portfolio. In the near future, MiningJOY would be channeling more diversified mining plans for its discerning clientele who like to chase highs with less-dominant cryptocurrencies, such as Ethereum, CKB (Nervos), and more to come.

At present, the MiningJOY platform mainly focuses on Bitcoin mining machines, both for rent and for purchase. They are unlike the majority of cloud mining platforms where clients receive a relatively obscure slip which details just a few parameters, leaving them with no clues about how the payout is composed and how their hashrate/miners are operated. MiningJOY realizes that Ponzi schemes are nothing new in the cloud mining market and provide their customers with as much details as possible about the contents of their order. Many users, after having a bad experience, have lost faith in the possibility of fair mining in the cloud, and thus MiningJOY is ready to plug the leaks in the outdated cloud mining model. Backed by its full-stack management system, MiningJOY is capable of bringing the most authentic mining experience to its clients, which includes:

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Unlike most cloud mining services, with MiningJOY, clients get what they actually paid for. MiningJOY was officially launched in June 2019 by Starwin Capital Limited with registry in Hong Kong, which extends to own Type 1, Type 6, and Type 9 Licenses under their belt. This allows them to lay a more substantial foundation for the emerging cryptocurrency-based financial landscape and fintech zeal. MiningJOY’s business now involves two parts: cloud mining services for individual investors and supercomputer server rental hosting service for professional and institutional clients. Currently with MiningJOY’s spot-delivery products, clients will start to receive Bitcoin mining payouts the next day. The prices start with $20.10 (mine until the last minute of your machine’s life expectancy), with the electricity rate as low as $0.052 per kW⋅h. If the price of Bitcoin stays above $11,000, the full-year return of Whatsminer M20s mining contract per terabyte (TB) is expected to be around $30.00, which results in an annual yield of 13.32%. The mini order quantity starts from just 1 TB.

Article Produced By
Torsten Hartmann

Torsten Hartmann has been an editor in the CaptainAltcoin team since August 2017. He holds a degree in politics and economics. He gained professional experience as a PR for a local political party before moving to journalism. Since 2017, he has pivoted his career towards blockchain technology, with principal interest in applications of blockchain technology in politics, business and society.

https://captainaltcoin.com/bitcoin-mining-with-miningjoy-a-perfect-solution-to-fight-against-inflation/

Heiko Closhen, Entrepreneur

Japanese soccer star Keisuke Honda launches his own crypto

Crypto and blockchain matter for the global soccer community.

A Japanese professional soccer player is launching his own cryptocurrency to boost fan engagement.

Keisuke Honda, former Japan midfielder and currently a captain of the Brazilian professional league team Botafogo, has launched his own token to build new connections with his fans, Cointelegraph Japan reported on Oct. 22.

The so-called “KSK Honda Coin” was launched on Thursday via Rally.io, a blockchain platform for creating video streaming and gaming applications. The new coin is intended to enable fans to interact with Honda.

Holders of KSK Honda token will be able to get exclusive content from Honda as well as interact with the player via private channels on Discord. “We decided to create a social token to build new connections with our most loyal fans,” Honda said.

The world-known soccer player said that the new token will allow him to connect with fans in a more open manner, providing a 100% transparency in knowing who holds coins in the fan community.

The global soccer community is moving deeper into the crypto and blockchain industry in search of new ways of connecting stars with their fans.

On Oct. 15, a top soccer club in Russia’s Premier League — Zenit St. Petersburg — signed on to the blockchain-based gaming platform Sorare to issue collectible and tradeable digital cards. In September 2020, Italian professional sports club SS Lazio signed a multiyear deal with crypto trading platform StormGain, enabling new fan engagement options through crypto.

 

written by Helen Partz

https://cointelegraph.com/news/japanese-soccer-star-keisuke-honda-launches-his-own-crypto

Heiko Closhen, Entrepreneur

Crypto banks are going to swallow fiat banks in 3 years or even less

Crypto banks are going to swallow fiat banks in 3 years — or even less

Crypto banks are going to swallow fiat banks in 3 years — or even less

By MARK BINNS

In three years, a younger generation of banking customers won’t do business with a traditional fiat bank unless it offers access to crypto.

Within a few years, a younger generation of financial services customers are going to be able to walk into a bank and gain access to credit products, savings accounts and investments that can host both crypto and fiat assets. In fact, the inroads that will allow for all of this to happen are already breaking ground.

You probably already know that Kraken, a cryptocurrency exchange based out of San Francisco, is now the first-ever cryptocurrency business in the United States to become a bank. For now, being an officially chartered bank means that Kraken will be able to offer more banking and funding options to existing customers. It also means Kraken Financial is going to be able to operate in multiple jurisdictions without having to deal with state-by-state compliance plans.

Kraken is currently working with Silvergate Bank to offer SWIFT and FedWire funding options to U.S. customers. More and more of these kinds of partnerships will become the status quo in the near future. That’s why now is the time for traditional banks that are lagging behind to start paying attention.

Silvergate Bank is a step ahead of the rest at the moment. The company boasts 880 digital asset companies as clients. Those clients have deposited more than $1.5 billion with the bank. That’s still a small amount of money relative to the market capitalizations of most major banks or even most major cryptocurrencies for that matter. That said, keep in mind that major crypto exchanges Coinbase and Gemini are now customers of JPMorgan, even though CEO Jamie Dimon routinely denounced the value of Bitcoin (BTC) and cryptocurrencies just a few short years ago.

Consumers will soon define a “full service” bank as one that offers financial services in both crypto and fiat. The time to start acquiring the necessary tools of the crypto banking trade is right now. Banks need to start adapting or get left behind. Make no mistake about it.

But what tools do they actually need?

 

Blockchain forensics tools

A crime scene investigator can use a black light or fingerprint powder to uncover all kinds of evidence. The idea that Bitcoin or blockchains are completely private has been dispelled again and again. In fact, blockchain-based currencies are much more open to investigative methods than fiat currencies. It is certainly possible to uncover the origins of transactions. In order for banks to do that with cryptocurrency, they will need blockchain explorers and risk scoring tools that can go a step further than the current publicly provided services.

Those forensics tools already exist, and they allow investigators to follow digital paper trails across addresses, wallets, transactions, blockchains and other digital entities, using techniques like clustering and heuristics. Companies in this space are developing their own proprietary searching algorithms designed to detect the origins of concealed funds and unmask criminals.

Remember, traditional fiat is still the currency of choice for money laundering professionals. Cryptocurrency is in its nascent days and will emerge as a powerful force in reducing the money laundering risk around the world.

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DeFi is not going to be the answer for the average consumer

Make no mistake about it, the decentralized finance sector of cryptocurrency holds virtually endless promise. Yield farming may be all the rage, but the DeFi sector is so much more than that.

DeFi projects can allow you to take technical and fundamental trading advice from other traders and only pay a fee if you make a profit. You can pour your capital into digital investment portfolios without having to pay mutual fund fees that can eat away at hundreds of thousands of dollars worth of your retirement portfolio. Investors can also hold derivatives of their desired cryptos without having to constantly switch between blockchains. These innovations are just the tip of the iceberg. As the market continues to mature, more and more DeFi projects will allow us to do things in the future that we are not even thinking about right now.

There is, however, one fundamental problem with all of this. The average banking customer isn’t going to engage with decentralized finance protocols for decades. Yes, the most avid crypto enthusiast knows enough to dig up the contract address of an ERC-20 token, trade it on decentralized exchanges, and invest that token through lending platforms and liquidity pools.

However, the average person is likely still going to want to talk to a banker from time to time, even if they hold most of their wealth in the form of cryptocurrency. Furthermore, governments around the world are working on their own government-backed cryptocurrencies, which the average consumer will definitely want access to at their bank of choice.

 

Sooner rather than later

What will happen if banks don’t join the party?

Any bank still approaching cryptocurrency with trepidation over the next 18 months is at risk of finding itself dead in the water at the hands of Kraken and other banks that jump on board and take the plunge.

Now is the time for traditional fiat banks to engage in empowering the individual with greater access to crypto. If they don’t, they will be swept away by the rising tide of cryptocurrencies ripe to reinvent the world’s financial system one way or another.

The views, thoughts and opinions expressed here are the author’s alone.

Article produced by MARK BINNS

https://cointelegraph.com/news/crypto-banks-are-going-to-swallow-fiat-banks-in-3-years-or-even-less

 

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Heiko Closhen, Entrepreneur

DLT security standards may turn legacy industries into blockchain innovators

DLT security standards may turn legacy industries into blockchain innovators

DLT security standards may turn legacy industries into blockchain innovators

By RACHEL WOLFSON

Member-led working groups are helping define security standards for tokenized use cases.

Tokenization has given rise to the “Internet of Value,” an era in which financial assets — or any assets with underlying value — can be easily transferred peer-to-peer over the internet. While revolutionary, tokenization has largely remained a concept embedded strictly within the cryptocurrency space. Yet as the need for digitized processes continues to impact multiple sectors, tokenization could become a game-changer for global digitalization.

In order to drive mainstream adoption, the InterWork Alliance — a nonprofit organization dedicated to creating global standards for tokenized ecosystems — has announced the formation of two new member-led business working groups. The Distributed Ledger Technology Security and the Global Trade and Supply Chain, both of which will focus on creating standards for the security of tokens being used in financial services.

 

Security standards needed

Paul DiMarzio, marketing director for the IWA, told Cointelegraph that the new business working groups aim to ensure that the standards driving tokenized services for financial use cases reflect the security needs of an entirely digitized financial sector:

“The concern is that traditional security measures developed for transactional systems may not be adequate when applied to tokenized services deployed to distributed ledger technologies. At present, the distributed ledger technology landscape is filled with fragmentary standards and guidance with respect to security considerations.”

To ensure an efficient security framework, the IWA security working group has appointed Bill Izzo as its chair. Izzo also serves as the Depository Trust & Clearing Corporation’s director of the security technology team, which recently published a white paper on the security of DLT networks.

According to Izzo, distributed ledger technologies are rapidly being applied within the global financial services industry, a market valued at over $22 billion. Izzo further mentioned that tokenization is an important element to ensure that financial use cases relying on DLT systems are secure.

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Electronic bills of lading tokenized

Izzo hopes that the DLT security business working group will create a series of use cases for tokenization across the financial sector to reduce risk, decrease costs and increase DLT security capabilities. The DTCC white paper further states that financial sectors using DLT-based systems can achieve “strengthened identity measures, improvements in information preservation and data integrity, processing efficiencies, increased operational capacity, and compliance effectiveness.”

More specifically, tokenization has started to transform paper-based supply chains and global trade processes. Alex Bausch, co-chair of the Global Trade and Supply Chain group and executive chairman at 2tokens — an organization dedicated to driving tokenization — told Cointelegraph that although the working groups are a new initiative, members have already started working on applying security standards to a tokenization use case for electronic bills of lading:

“The newly formed IWA working groups will take an active role in the implementation of the existing electronic bill of lading token through real-life pilots, while actively engaging with authorities to promote the legal acceptance of digital tokens.”

According to Bausch, the electronic bill of lading use case builds upon the TradeTrust project initiated and being used by the Port of Rotterdam, Port of Singapore, Infocomm Media Development Authority of Singapore, and Blocklab. Bausch explained that IWA’s Global Trade and Supply Chain group will set out to create a token taxonomy framework for this use case, along with establishing a set of legal regulations.

This can be extremely beneficial, as findings from 2tokens show that an electronic bill of lading could facilitate a more resilient supply chain, reducing the need for manual, paper-based processes. This can also result in revenue gains. The Digital Container Shipping Association estimates that the industry could potentially save more than $4 billion per year if the electronic bill of lading adoption reaches 50%.

 

Challenges hamper mainstream adoption

Ultimately, mainstream adoption for tokenized business use cases has been complicated due to a lack of standards and regulations, according to James Rilett, senior director of innovation and digital strategy at S&P Global Platts — a division of S&P Global that provides energy and commodities information to customers in over 150 countries. He told Cointelegraph that while it makes sense to tokenize a bill of lading, regulations must first be considered:

“It may be difficult for a company or individual to carry a DLT warrant through the current legal system that was established years ago. There is still an old-fashioned way of doing things that is governed by paper processes. Bills of lading and maritime case laws are already in place and people want to continue to follow those.”

In order to successfully combat current regulatory challenges, DiMarzio explained that the new IWA working groups will follow a standard process of articulating and defining the elements of a specific use case under study. “The starting point for this process is establishing the business specifications of the items of value within that use case that will be tokenized,” he said.

DiMarzio also shared that the working groups will look to examine the contracts that are expected to be written across specific tokens, defining these in a workflow-like format. Finally, any valuable insights that might be produced from an analysis of the shared data across these contracts are identified. IWA will then look to take the findings and turn them into standards, which will be returned to the business working groups for validation. He added: “The business working group will also involve regulators in the standard creation process to make it more cohesive and create trust with the regulatory bodies.”

Article produced by RACHEL WOLFSON

https://cointelegraph.com/news/dlt-security-standards-may-turn-legacy-industries-into-blockchain-innovators

 

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Heiko Closhen, Entrepreneur