Showing posts with label Blockchain. Show all posts
Showing posts with label Blockchain. Show all posts

Monday, November 9, 2020

Interview with Bitfinex CTO Paolo Ardoino: East Asia has a particularly strong demand for Tether

 

In the crypto market, Tether's position has always been delicate.

On the one hand, as the earliest stable currency, Tether emerged after the "coin circle 94" as an effective pricing tool and safe-haven asset; on the other hand, due to its own compliance issues and the opacity of reserve assets, Tether broke out many times Crisis of trust and fall into a regulatory quagmire

Especially this year, with the overall recovery of the encryption market, Tether started the "money printing mode". In just the past 9 months, it has issued more than 10 billion U.S. dollars.

Behind the crazy growth, is it demand-driven or inflated assets? Paolo Ardoino, CTO of Bitfinex & Tether, accepted an exclusive interview with Odaily Planet Daily to respond to related questions.

Paolo Ardoino said that behind Tether is 100% of asset reserves; this year's continuous issuance, in the final analysis, the market is driving the demand for Tether. In addition, from the perspective of fund transfer trends, the demand for Tether in East Asia seems to be particularly strong.

The following is a record of Q&A, compiled by Odaily Planet Daily:

Odaily: From Realcoin in 2014 to USDT in 2017, Tether has experienced 6 years of ups and downs. First of all, please give you a detailed introduction to the process of Tether issuance and redemption of USDT?

Paolo Ardoino: Tether Token (USDT) is a digital token built on various blockchain chains, including Omni, Ethereum, EOS, Tron, Algorand, Bitcoin Cash's Simple Ledger Protocol (SLP) and Liquid Network. These agreements consist of open source software linked to the block, allowing the issuance and redemption of USDT.

Tether will issue tokens based on market demand and put them into the market for trading. According to Tether's terms of service, USDT can be exchanged and traded at a ratio of 1 USDT: 1 USD.

At the time of issuance, USDT will be backed by 100% of Tether's assets; when the customer redeems, USDT will be returned to Tether and the user's reserve fund will be refunded. As follows:

Odaily: At the beginning of this year, the total amount of Tether (USDT) was only 4.76 billion U.S. dollars; in the past nine months, the cumulative issuance exceeded 10 billion, reaching 15.2 billion U.S. dollars, a cumulative increase of 220%. Many people will question whether the cryptocurrency market really needs so many stablecoins when the scale of the industry is limited, hot money is difficult to enter, and new users are scarce. Could you please introduce, where does the demand for additional issuance come from?

Paolo Ardoino: Tether tokens play a key role in the transaction of cryptocurrency and play a vital role. In fact, in recent years, we have seen a shift: from using Bitcoin transactions as the main valuation to using Tether as the main valuation. In addition, USDT is increasingly being used for innovative projects in the field of remittance and digital assets, including decentralized finance (DeFi). In general, it is the market that drives the demand for Tether. 

Odaily: From the perspective of time distribution, March, April, July and August are the months with the fastest growth of USDT. Why does the amount of additional issuance fluctuate greatly over time? Many people have tried to summarize the relationship between the additional USDT issuance and the trend of the "big market" currency price. What do we think?

Paolo Ardoino: People are looking for efficient, mobile, and reliable alternatives to replace outdated banks and payment systems, and investors also want a safe haven to reduce risks. In an era full of challenges and uncertainties, the practicality, security and feasibility of digital currencies such as Tether have been at the forefront and become the focus of the market.

As the largest, most liquid, and most technologically innovative stablecoin, Tether is a model of how the global market can use blockchain technology to operate more efficiently, as well as a representative of payment channels built for future business and innovative development. 

Odaily: Is this year's additional issuance mainly from individual users or institutional users? What is the maximum amount of single additional issuance? What are the changes in the number of users in different regions?

Paolo Ardoino: The growing demand for USDT reflects the development of the entire crypto ecosystem.

People trust USDT, and they also like to use the most liquid, stable and outstanding stable currency among the cryptocurrencies. This is best demonstrated in East Asia. According to Chainalysis data, USDT token is the largest and most popular stable currency in East Asia.

Odaily: In the past few years, we have also seen that USDT cross-chain demand has become stronger and stronger. From the previous Omni, ETH, Tron to EOS, Algorand, OMG and Solana, there may be more public chains to undertake USDT in the future. Demand. What are the technical difficulties when different public chains undertake USDT conversion requirements? What difficulties did Tether encounter when switching chains, and how did they solve them? (Can give examples)

Paolo Ardoino: When we receive a chain swap request from a crypto exchange, we need to coordinate and manage the entire chain swap process with the exchange until it is completed.

In some cases, when our client's request for chain swap funds exceeds the number of USDT tokens held in our inventory wallet on the target blockchain. If we want to continue the chain exchange, then we must authorize additional USDT issuance and transfer these tokens to the target blockchain.

After the transfer is completed, we either burn the same amount of USDT tokens on the initial blockchain (USDT on the target chain will be fully supported and issued), or keep these tokens in the treasury wallet on the initial blockchain Medium (unsecured), used for future chain exchanges with customers.

Odaily: At present, ERC20-USDT has the largest issuance, and TRC-20 has the lowest and fastest handling fee, and is very much loved. In your opinion, can the ERC20 and TRC20 versions of USDT maintain the first-mover advantage? Can other versions of USDT change the current situation?

Paolo Ardoino: Tether likes and is willing to support many blockchain innovations. For other blockchain versions of USDT tokens to develop, more projects must be encouraged to adopt and use them.

Odaily: Although there are other different versions of USDT (such as EOS version of USDT), they are not supported by centralized exchanges. For latecomers, what is the necessity and advantage of existence?

Paolo Ardoino: USDT allows exchanges to easily use fiat currencies on the blockchain. The exchange supports different versions of USDT tokens and will be able to better serve various blockchain communities.

Odaily: In addition to USDT, Tether has also issued stablecoins anchored to the euro, offshore renminbi and gold, but the development status is not good compared with USDT, only tens of millions. What are the obstacles? How to expand this part of the market?

Paolo Ardoino: USDT is currently more popular than other Tether tokens supported by fiat currencies. This is mainly because USDT is linked to the global legal reserve currency, the US dollar. The dominance of the US dollar determines the popularity of USDT. In addition, time will tell whether the market will have more demand for Tether's non-USDT products; if so, Tether is also ready.

Odaily: In the future, what other plans does Tether have? Will it issue stablecoins based on more legal currencies and physical objects?

Paolo Ardoino: Of course, we are still willing to explore other contents of the Tether product portfolio.

Odaily: In addition to Tether, there have also been many stable coins in the crypto market in the past two years, such as USDC, PAX, GUSD, etc. Do you think the emergence of these stablecoins will impact Tether's current status?

Paolo Ardoino: While Tether issuance continues to break records (remains ahead), but we also welcomed happy to see the whole stable currency markets are booming. We are grateful for users to choose Tether in the free market. But a single tree is difficult to support, and a lone tree cannot become a forest. It is difficult for a company to win alone, and it is possible for multiple companies or enterprises to form a joint force to achieve success.


Thursday, November 5, 2020

The 12th anniversary of the publication of the Bitcoin white paper, the price of the currency broke a 2-year high, and the monthly line closed up 28% (10.26-11.1)

 Bitcoin broke through a two-year high and closed up 28% on a monthly basis;

New addresses increased by 89%, active addresses decreased by 20%;

The Wall Street Journal reported that MicroStrategy invested in Bitcoin;

At the beginning of the rainy season, Bitcoin's entire network computing power dropped by 23% to join the relocation;

Data: The number of Bitcoin whale addresses hit a new high since the fall of 2016;

Report: BTC rose to 14,000 US dollars, but the relevant indicators have not fully followed up.

Secondary market

Bitcoin breaks through a 2-year high, closes up 28% monthly

This week, Bitcoin climbed up the ranks, testing the $13,000 and $14,000 mark successively. On October 31, it rose 3.5%, and Bitcoin rushed to a new high of $14,099 after falling in 2018. It has now fallen back to around 13800USDT. Weekly closed up 6%, monthly closed up 28%.

Non-small

Bitcoin has a net inflow of $490 million this week

Although the currency price rose to a new high, compared to last week's net inflow of US$870 million, this week's net inflow was almost cut in half. The reason is that on October 28, Bitcoin failed to hit the $14,000 mark and caused a sharp drop and capital flight. In the second half of the week, Bitcoin broke new highs, and the net inflow of funds was sluggish because of the fear of chasing high.

U.S. dollar to bitcoin transactions accounted for 7% drop

In this week’s bitcoin-to-fiat currency transactions, the US dollar ranked first, accounting for 72.4% of the total, a 7% decrease from last week. At the same time, the proportion of the yen rose by 4 points to 24.6%. The total share of the remaining legal currencies against Bitcoin rose slightly to 7.3%.

Coinhills

Data on the chain

Large transfers declined slightly

In terms of large-value transfers, a total of 5,465 transactions of ≥100 BTC occurred in large-value transfers this week, a slight decrease from last week.

Tokenview

New addresses increased by 89%, active addresses decreased by 20%

As of November 1, the number of new Bitcoin addresses was 420,000+, an increase of 89% compared to last Sunday; the weekly high of active addresses was 890,000+ and the low was 590,000+, compared to last week A drop of nearly 20%.

Tokenview

The number of small coin holding addresses has decreased slightly

Among the Bitcoin addresses, 48.73% of the addresses accounted for 0.02% of the total currency volume, a slight increase from last week; 24.21% of the addresses accounted for 0.17% of the total currency volume, a slight decrease from last week.

Bitinfochart

Mining

At the beginning of the rainy season, the hash rate of Bitcoin's entire network dropped by 23%.

According to BTC.com data, after dropping by 8%, Bitcoin's computing power continued to drop by 19% this week to 108EH/s, a cumulative drop of 23% from the high two weeks ago. In response to the drop in hashrate, the difficulty of Bitcoin's hashrate will drop by 13.7% in one day.

 F2pool computing power surged 23%

According to BTC.com data, F2pool has since announced that its real-time computing power is 19.8EH/s, which is an increase of 23% compared to last Monday, almost returning to the state of wet season; its percentage of computing power has also risen from second to second in the past week. One, 15.7%;

Biyin mining pool has since announced that its real-time computing power is 15.6EH/s, which is a slight drop from last Monday; the percentage of computing power has dropped to 13.3%;

BTC.com has since announced that its real-time computing power is 14.3EH/s, a drop of 10% compared to last Monday; due to the relatively high lucky value in recent days, its computing power ratio rose to 12.4% in the past week.

Related news

The 12th Anniversary of the Bitcoin White Paper

On October 31, 2008, Satoshi Nakamoto published Bitcoin's creation paper: "Bitcoin: A Peer-to-Peer Cash Payment System", which is 12 years ago.

Data: Bitcoin's October revenue reached 28%

Unfolded said on Twitter that data showed that Bitcoin's October earnings reached 28%. Due to the high volatility in the first few years after Bitcoin was born, this performance may be more valuable now.

The Wall Street Journal reports that MicroStrategy invests in Bitcoin

On the evening of October 31, Beijing time, the Wall Street Journal published an article reporting on MicroStrategy’s Bitcoin investment.
The article stated that MicroStrategy could have "get rid of" its remaining cash by paying huge dividends or repurchasing most of its stock. Instead, MicroStrategy bet half of its total assets on Bitcoin. In September 2020, when MicroStrategy announced that most of its remaining cash was used for Bitcoin investment, its stock rose 23% in two days, surpassing its stock performance in the past few years. MicroStrategy CEO Michael Saylor stated that the main purpose of the company's purchase of bitcoin is not to increase the stock price, but to prevent the company's purchasing power from falling. Compared with bonds, stocks and gold, bitcoin is a relatively ideal long-term asset.

Report: BTC rose to 14,000 US dollars, but relevant indicators have not fully followed up

Santiment, a crypto analysis company, stated in a report that Bitcoin's rise to $14,000 was unexpected, and public sentiment turned into optimism and excitement. However, data shows that Bitcoin-related network activities and daily activity addresses have not fully followed up.

Opinion: Lightning network vulnerabilities continue to hinder Bitcoin scaling solutions

Although Bitcoin prices hit some highs in 2020, a large number of crypto supporters have been complaining about the backlog of mempools and the high fees required to send transactions. At the same time, the Lightning Network is far from being widely adopted because the LN software is too difficult for ordinary users, many applications are hosted, and many vulnerabilities have been disclosed this year. (Bitcoin.com)

Opinion: Bitcoin memory pool has returned to the level after the bubble burst in early 2018

Unfolded said on Twitter that the Bitcoin memory pool has now returned to the level it was after the bubble burst in early 2018.

Research: COVID-19 triggers investors to buy Bitcoin

A recent study jointly conducted by Grayscale and 8acre Perspective showed that 83% of those who bought Bitcoin made the investment last year. In addition, 38% of Bitcoin purchasers purchased Bitcoin in the past 4 months, indicating that the epidemic prompted investors to purchase Bitcoin. This period of time coincided with the beginning of the lockdown and quarantine regulations caused by the epidemic.

Multinational energy giant Enel Group was attacked by ransomware, hackers demanded nearly $17 million in Bitcoin ransom

The Italian multinational energy giant Enel Group recently encountered a ransomware attack. Its computer network was infected with a Windows ransomware called NetWalker. It is reported that NetWalker hackers released screenshots of approximately 5 TB of stolen data and threatened to release the first batch of data within a week, thereby forcing Enel Group to pay 1,234 bitcoins (about 16.8 million US dollars).

Sunday, November 1, 2020

Privacy Computing: What can we do to protect our data security?

 How important is data privacy?

Taking face recognition as an example, face recognition technology is being widely used in payment transfers, unlocking and decrypting, traffic cases, real-name registration, account opening and cancellation, access control and attendance and other scenarios. Each item affects our property, health, and privacy. Wait for safety.

Just in a CCTV news report in the evening column, the reporter found that on a certain online trading platform, you can buy thousands of face photos for only 2 yuan, and more than 5,000 face photos are less than 10 yuan. , A single face photo is less than 1 cent. These photos are from real life photos and selfies shared by real people on social networks. If the user's identity information is superimposed on it, it is likely to be used in crimes such as precision fraud, money laundering, and criminal involvement.

How much private information we have left on the Internet and how many platforms we have left it, I am afraid that we can't even remember it. And we know almost nothing about the ultimate destination, use, and security of these data.

In recent years, my country has initiated relevant legislation on the protection of citizens' personal data and privacy, such as the "Network Security Law" and the "Civil Code", which all have legal provisions for the protection of personal information. The "Data Security Law" and "Personal Information Protection Law" are also in the process of soliciting opinions from the whole society.

The promulgation of relevant laws is more a guarantee of rights protection after the fact, and the protection of personal data and private information still needs to be started from the source, that is, each network platform realizes the comprehensive protection and supervision of data from the technical level.

At the same time, data transaction and data circulation have become an important issue restricting the development of my country's big data industry. How to obtain credible and high-quality data through legal, compliant, safe and efficient means has become an urgent problem for many technology companies and platforms.

On the one hand, there is a flood of data privacy leaks of users, on the other hand, it is difficult for relevant enterprise platforms to obtain effective and compliant digital resources. This contradiction has caused more and more companies to call for a new data governance and application solution.

So far, a kind of privacy computing (Privacy Computing), which is used to protect data from leakage, but can realize data analysis and calculation, has been officially put on the agenda.

The "Millionaire" Problem: The Origin of Private Computing

"Suppose two millionaires meet, and they both want to know who is richer, but they don't want to let the other party know how much wealth they really have. So how do you let the other party know who is richer without the involvement of a third party? "

This is the "millionaire" hypothesis put forward by Academician Yao Qizhi, the 2000 Turing Prize winner in 1982. This brain-burning problem involves such a contradiction. If you want to compare who is richer, the two must publish their real property data, but the two people don't want the other to know how much their wealth is. So, in our opinion, this is almost an unsolvable paradox.

This seemingly difficult problem involves the ownership and use rights of data. The wealth owned by the rich is the ownership of the data, and the publication of the wealth data by the rich is the right to use the data. At present, when major Internet platforms provide services to you, they basically obtain both the right to use data and almost the actual ownership of the data. Although users retain nominal ownership of the data, most people will Keep it on these platforms, and few people will advocate that the platforms destroy data.

Faced with the careful consideration of two "millionaires", whether there is a technology that can separate the ownership and use rights of data, allowing the rich to disclose wealth data to this technology platform, but after a series of encrypted data calculations, finally Only give the corresponding result (who is richer). For Internet platforms or companies that need user data, what they get is no longer the ownership of the original data, but a set of data that is first encrypted to provide services to the data demander?

Understand this assumption, you can understand the general idea of ​​privacy calculation.

In privacy computing, this is a professional encryption problem, which can be accurately expressed as "a collaborative computing problem between a group of untrusted parties, under the premise of protecting private information and without a trusted third party." Secure Computing Protocol. While proposing the idea, Academician Yao Qizhi also proposed his own solution "Multiple Secure Computing" (MPC).

When MPC was proposed in the early 1980s, it could only be used as a technical theory that urgently needs to be verified. With the continuous improvement of computer computing power and the increasing application and importance of private data, MPC technology is also gradually improved and applied.

Now, in addition to the progress in MPC technology, privacy computing has also shown more new technical features and solutions. So, what are the specific developments in the current technical preparations and industrial applications of privacy computing?

Privacy computing gestation period: the eve of large-scale applications

Why is privacy computing becoming more and more important now? Not only the leakage of personal privacy data of citizens mentioned at the beginning has reached a stage that urgently needs to be governed, data has also become the most important core asset of enterprise platforms, and enterprises have already motivated to fully protect and use compliant data on the platform. .

We see that this year, for the first time in China, my country has defined data as the fifth major production factor besides land, labor, capital, and technology. Not long ago, the "Draft of the Personal Information Protection Law" reviewed by the National People's Congress stipulates that if the violation of personal information rights and interests is serious, the illegal income shall be confiscated and a fine of less than 50 million yuan or less than 5% of the previous year's turnover shall be imposed. The 5% quota even exceeds the EU GDPR, which is known as the "most stringent data protection".

Whether it is for data compliance and legal considerations or for data application considerations, companies are increasing their efforts to protect data privacy. According to the latest strategic technology trend forecast by Gartner, an international research organization, privacy computing will become one of the nine key technologies to be digged in 2021. Gartner also predicts that by 2025, half of large enterprises will use private computing to process data in untrusted environments and multi-party data analysis use cases.

The emergence of these new trends puts forward new requirements for privacy computing and will also provide a broad range of industrial application requirements.

From the technical side, there are two mainstream solutions for privacy computing. One is a solution that uses cryptography and distributed systems, and the other is a solution that uses trusted hardware to receive multiple private data input and output.

At present, the cryptography scheme is represented by MPC, which is realized by professional technologies such as secret separation, inadvertent transmission, obfuscated circuits, and homomorphic encryption. In recent years, its versatility and performance have been significantly improved, and it has practical application value. At present, trusted hardware technology is mainly based on the Trusted Execution Environment (TEE), which builds a hardware security zone, and data is only calculated in this secure zone. The core is to still leave the data trust mechanism to hardware parties such as Intel and AMD. Because of its high versatility and low development difficulty, it can play important value in scenarios where data protection is not strict.

In addition, in the context of artificial intelligence big data applications, "federated learning" is also the main promotion and application method in the field of privacy computing.

In the new technology cycle represented by artificial intelligence and big data applications, privacy computing has put forward higher data governance requirements for Internet platforms and enterprises, that is, truly user-centric, without relying on the enterprises themselves or third-party companies The controlled data server provides security protection, allowing users to truly control their own data ownership and protect data security and privacy requirements.

On the industrial side, privacy computing application scenarios continue to expand.

For example, in the financial industry. Domestic privacy computing products are currently mainly used in risk control and customer acquisition in the financial industry, that is, a number of financial-related institutions conduct joint portraits and product recommendations to customers without disclosing their personal information, which can effectively reduce them in scenarios such as long-term loans. Default Risk.

In the medical industry, through privacy computing technology, medical institutions and insurance companies can analyze the health information of insured persons without sharing the original data. In the government affairs industry, privacy computing can provide solutions that integrate government data with social data such as telecommunications companies and Internet companies. In the relevant plans of some local governments, privacy computing is expected to become the focus of the next application promotion.

In the future, privacy computing will be widely used in many fields with sensitive privacy data such as finance, insurance, medical care, logistics, and the automobile industry. When solving the problem of data privacy protection, it will also help alleviate the problem of data islands in the industry. It is a large number of AI models. The training and technology landing provide a compliant solution.

A long way to go, the predicament and way out of data privacy computing

Now, as social development enters the era of data elements, mobile Internet enters the second half and the international situation is unpredictable, the data element issues have become more complex. In the field of privacy computing, the legal positioning of the safe use of citizen data, the analysis and application of data within and between enterprises, and the global cross-border transaction and circulation of data are all facing unprecedented challenges, and there are also problems in each link. .

First of all, with regard to the legal provisions on the safe use of citizens’ data in privacy computing, my country’s laws have not yet clearly stipulated whether privacy computing is legal. In existing regulations, “network operators shall not provide personal information to others without the consent of the person being collected. "The goal of privacy computing is to calculate based on multi-party data, which in principle violates this requirement, but at the same time it also applies to the exception clause that "a specific individual cannot be identified and cannot be recovered after processing." These have become the first legal bottlenecks restricting the development of privacy computing.

Secondly, there is still a certain degree of difficulty in applying privacy computing in enterprises. For example, the data standardization and data quality of most enterprises cannot support the requirements of privacy computing for data consistency among participants. The complexity and computational efficiency of privacy computing itself put forward higher requirements for large-scale commercial use of enterprises, and the cost of trial and error is high. In addition, private computing has a certain "black box" effect for users who really benefit. It is difficult for people to understand and trust private computing technology, and the cost of popularization and acceptance is high.

In addition, cross-border transactions and flows of global data are now facing numerous difficulties. For example, in the US government's attack on TikTok not long ago, one of them was to accuse it of collecting data from American citizens and to prevent it from storing the data on Chinese servers. Ireland in Europe also asked Facebook to order it to suspend the transmission of data of its EU users to the United States. In 2016, the European Union first promulgated the world's most stringent data protection program GDPR, stipulating that the consequences of non-compliance with data privacy regulations will be severely sanctioned and huge fines. Previously, Google got a high fine of 50 million euros issued by the French data protection regulator. Recently, the Swedish H&M company was fined 35 million euros for illegally monitoring employee privacy.

In the context of the tightening of new data supervision and the complex international situation, companies engaged in data cross-border activities need to reconsider their underlying architecture design. To avoid cross-regional cutting and disposal of data, but also to avoid falling into the monopoly of hardware giants, adopting new privacy computing solutions has become an important task for some companies involving cross-border business.

These application dilemmas of privacy computing urgently need to be resolved by various parties, including the active promotion of governments of various regions and countries around the world, especially the definition of the rights and responsibilities of privacy computing by laws and regulations, and the governance of corporate data by big data-related companies. Continuous investment in intensity.

So for related technology companies that promote the development of privacy computing, there are now a series of new development trends.

The first is the emergence of blockchain technology, which provides a new solution for private computing. The application of privacy computing to the blockchain not only increases the immutability and verifiability of private computing results to a certain extent, but also increases the confidentiality of data on the blockchain. It has become the technology integration direction of many manufacturers. For example, a permissionless private computing service uses TEE trusted computing nodes all over the world to ensure the stability and security of private computing.

Secondly, software and hardware collaboration and platform integration are greatly improving the performance and convenience of private computing. This enables the hardware acceleration and capability arranging of privacy computing through the platform infrastructure to achieve a full range of capabilities from storage computing to modeling and mining.

In addition, private computing is also moving towards large-scale distributed computing, and its implementation methods are more diverse. Some projects through low or even zero code development code that can greatly reduce development efficiency and reduce development threshold Privacy computing products.

In the end, we see that in the "digital rights era" when data becomes more valuable and data security becomes more and more important, privacy computing will become the most important gatekeeper between user data security protection and the enterprise's use of data value. Privacy computing companies must play the roles of data management and service providers, but this role is no longer a simple role of checking data for the "two rich men", but can provide them with a full range of data protection. Able to carry out full operation of data "assets" for it.

It is foreseeable that privacy computing will play a pivotal role in the future data governance and data collaboration between enterprises and organizations, as well as the commercial applications of emerging digital industries such as artificial intelligence and new infrastructure.

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