LC Lite Partners with Incomlend to Improve Letters of Credit through Blockchain Technology

LC Lite Partners with Incomlend to Improve Letters of Credit through Blockchain Technology

LC Lite and Incomlend are teaming up to take on the global trade industry by creating a blockchain-based platform that streamlines the letter of credit process, reported on February 11, 2019.

Where Credit Is Due

The issuing and use of letters of credit are about to get a whole lot easier as LC lite has announced on February 11, 2019, that they will be launching a platform that makes use of blockchain technology to streamline the process. This new platform will be done in conjunction with the founders of Incomelend, an income financing firm.

There is a huge market for this as the transactions conducted with letters of credit are over $2.3 trillion annually. This platform is designed to “improve cash flow for trade parties and enhance security by reducing fraud and default payments.”

Incomelend, on their part, is used to working with large sums as their current processing volume is $240 million per year and this figure is expected to surpass $1 billion in the next three years.

Improving the Industry

Letters of credit are a very important part of global trade as they help to facilitate the business between importers and exporters. However, LC lite estimates that up to 80 percent of letters of credit contain some form of discrepancies. By adopting a blockchain process, the human error margin is practically eliminated.

The platform intends to do this by introducing the ‘LC Lite Token’ which will serve as the means of exchange on the platform and also makes the LC contract a tradable asset. However, LC lite’s ambitions extend beyond merely creating a platform for letters of credit as they hope to displace interbank Institutions for international trade.

“LC Lite’s blockchain typically replaces intermediaries by capturing the unique data of a transaction in an immutable and transparent chain of records. Its smart, self-executing contract features perform transactions automatically upon fulfillment of specified conditions in a digital Letter of Credit between the buyer and the seller,” said Dimitri Kouchnirenko, the Founding Partner of Incomlend and Co-founder of LC Lite.

The role of blockchain in international trade cannot be ignored at this point. The World Trade Organization has estimated that the use of the technology will add trillions to the industry over the next few years and its use in the logistics industry has also grown in recent times.

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Co-Founder Quits Avalon Mining Chip Maker Canaan Over ‘Differences’

One of the three co-founders of Canaan Creative, maker of the Avalon cryptocurrency mining equipment, has stepped down from the Chinese company’s leadership.

According to government business registration data updated on Jan. 30, Xiangfu Liu will no longer serve as a board member at the Hangzhou-based Canaan Creative – a role he had served since 2013.

Further, a person familiar with the situation said Liu had left his day-to-day management role at the manufacturer and his executive board member position at its holding company, Canaan Inc., which unsuccessfully sought an initial public offering (IPO) in Hong Kong last year.

Canaan Creative did not respond to requests for comment. But the person close to the company told CoinDesk that Liu left his role due to disagreements with the company’s overall strategy.

Specifically, Canaan Creative’s management wanted to continue building the company as a pure-play manufacturer of chips for crypto mining and artificial intelligence. Unlike rival manufacturer Bitmain, Canaan does not mine crypto itself or run mining pools, and the leadership wanted to keep it that way, in order to justify the company’s sustainability for an IPO, the source said.

However, Liu, who has a background in computer science, believes hardware and software should not be separated entirely in the blockchain industry, meaning companies that make mining equipment should not cut themselves off from mining farms and pool businesses, the source said.

Major shareholder

Nevertheless, Liu, 35, remains a substantial shareholder of Canaan Creative. According to the now-lapsed Hong Kong IPO prospectus, Liu co-founded the firm with Nangeng Zhang and Jiaxuan Li in 2013.

While Zhang serves as Canaan’s chief executive officer, Liu was mainly in charge of the firm’s overseas business strategy and marketing, and he owns about 17.6 percent of Canaan’s total shares. In total, the three co-founders control over 50 percent of the firm.

Liu’s departure from the board also comes amid recent layoffs at Canaan, the source said, declining to disclose their scale.

But Canaan is far from alone in reducing staff, as other mining giants like Bitmain have also undergone layoffs as well as office closures, in part due to the overall bearish market conditions in 2018.

The news also comes weeks after a media report that Canaan Creative is now mulling an application to go public in New York after its initial IPO plan failed due to the hesitation of the Hong Kong Stock Exchange.

Canaan Creative image from CoinDesk’s archives.

Bitmain S15 Firmware “Very Buggy”, Will This Claim Affect BTC Prices?

  • Bitcoin prices bullish, road to $3,800
  • A Twitter user picks out a Bitmain S15 vulnerability
  • Transactional volumes low, expansion above 35 k ideal

Although Bitmain is a central player in the ASIC mining sphere, their latest firmware S15 has a weakness, a Twitter user has revealed. Luckily, BTC prices are steady, and with a combination of favorable candlestick arrangements and fundamentals, Bitcoin may end up trending above $3,800.

Bitcoin Price Analysis

Fundamentals

A Twitter user claims to have identified a possible vulnerability in Bitmain’s S15 firmware. However, he has his terms saying he will only point out the weakness once Bitmain submit and complies with GNL License.

The GNL License is a copyleft license that gives the end user the freedom to “share and change all versions of a program–to make sure it remains free software for all its users” according to the definition of the GNU Organization.

In a Reddit Post, James says Bitmain firmware is “very buggy.” He goes on to say it is essential for people to fix the bugs the Beijing based mining giant introduces in their latest S15 firmware. In high-performance mode, AntMiner S15 has a 28 TH/s hash rate with an energy consumption of 1596 W.

Candlestick Arrangements

Bitcoin

Bitmain is the leading player in ASIC mining. Obviously, this undisclosed weakness is likely to trigger other problems and even affect sales. All the same, BTC prices are steady and likely to reverse losses of the last few days.

Notice that our previous BTC/USD trade plans are valid and as long as prices trend above $3,400-500 zone—our immediate support zone, traders stand to profit once prices race above $3,800. That is to say, the level as per our previous iteration is the first minor resistance level. Once prices breach this level,  risk off traders can initiate long positions with modest targets at $4,500.

From candlestick arrangement, this projection is highly likely to be validated. Firstly, aside from prices reversing from the 78.6 percent Fibonacci retracement level, there is a double bar bull reversal pattern complete with a wide range, high volume bar of Feb 8. Everything else constant, this is very bullish. After a prolonged accumulation from early January, a fitting breakout above this congestion is on the cards.

Technical Indicators

From an effort versus result perspective, bulls are in control. The view is even stable thanks to the failure of sellers to extend their reach, reversing gains of Feb 8. A standout, therefore, is the high volumes of Feb 8. Then, volumes were at 32k exceeding those of Jan 28 and Jan 20. But, they were less than those of Jan 10—35k.

As aforementioned, we need to see prices break above this congestion and print above $3,800. Accompanying this breakout should be high volumes exceeding today’s averages of 10k and most importantly 32k.

‘Biggest Names in the Collectibles Space’ to Attend NYC Event on Non-Fungible Tokens

Non-fungible tokens (NFTs) have been generating a buzz in the crypto world for some time — and now, a conference is being established where enthusiasts and entrepreneurs can delve deeper into these digital assets, exploring the latest trends and uncovering new opportunities in the market.

NFT NYC is taking place on Wednesday, Feb. 20 at the PlayStation Theater in New York City’s Times Square, and organizers say more than 50 speakers have accepted invitations to share their insights. In describing what the event sets out to achieve, the objective is simple: “How unique digital assets on the blockchain will transform gaming, licensing, art and finance.”

The event will enable attendees to “meet and hear from some of the biggest names in the collectibles space” — including Cassidy Robertson from Axiom Zen, the company behind CryptoKitties. During her talk, she plans to chart the platform’s journey so far — a story that saw the company sell some of its most exclusive kittens for $120,000, and become the largest decentralized app (DApp) on Ethereum in the process.

Other talks are going to focus on getting mainstream gamers excited about non-fungible tokens, how these assets could reimagine philanthropy, NFTs’ potential in reshaping the sports experience for fans, and the process of tokenizing real-world assets on the blockchain. Dozens of other topics are also up for discussion.

The 411 on NFTs

Non-fungible tokens have attracted interest because they are different from the fungible assets commonly used by the crypto community and the fiat world today. Bitcoin is fungible, as it can be divided into smaller chunks and it is interchangeable. You can buy a fraction of this cryptocurrency if you want to — and if you were to lend a Bitcoin to a friend, it wouldn’t matter if you received the same one back.

All of this changes when it comes to non-fungible tokens, which are often ERC-721-compliant rather than built to ERC-20 technical standards. NFTs can carry unique types of information that make them rare and, in some cases, unlike any other token that’s out there in circulation. They are also sold whole rather than in chunks. Real-world examples could include plane tickets and baseball cards — and they achieve this non-fungible criteria because half of one cannot be purchased.

Lumi Collect is a crypto wallet for NFTs, and the company has sought to both educate users on its potential while giving them a way to store all of their tokens in one place.

Picture

Setting out the opportunities that await the market, Lumi Collect’s CEO, Diana Furman, told Cointelegraph: “Probably, there will be a new class of NFTs that allows for shared ownership and its original value would also be shared. A whole new industry for presenting digital art could emerge. What’s the point in owning a piece of art or another collectible if you cannot display it in a proper way and enjoy what you’ve spent hard-earned money on? NFTs can put an end to the era of digital piracy as they can act as licenses and regulators. Maybe, our digital personalities will be presented on the web as NFT.”

“Leading names and brands in blockchain”

At the PlayStation Theater, NFT NYC is planning to bring together key players in this burgeoning industry — including financial influencers who believe that non-fungible tokens have the potential to “drive the next wave of blockchain value.” Developers who built the infrastructure for NFT projects will also be in attendance, as well as social influencers who have expertise on driving engagement with communities.

One of the sectors that has enjoyed some success with non-fungible tokens already is the collectibles industry. Counterfeiting has often meant that collectors face substantial challenges in verifying whether an asset that catches their eye is authentic, but the rich metadata associated with NFTs can give investors confidence when it comes to authenticity, and this helps drive value in the market. NFTs can be used to represent real-world items, such as pieces of art, but pioneering startups like CryptoKitties have also created a new class of digital kittens that can be bought, sold and collected through a decentralized marketplace.

To generate buzz about its event, NFT NYC is giving participants a chance to design their very own coin — and the most liked will win.

Tickets are now being sold for the event, with general admission available for $299 and a VIP pass — complete with an exclusive dinner and airtime on a billboard in Times Square — costing $499. Tickets can also be purchased in NFT form.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

Core Developer’s 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

Core Developer’s 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

Bitcoin Core (BTC) developer Luke Dash Jr has once again sparked controversy with his idea to shrink the BTC chain’s block size down to 300kb. It’s not the first time the concept was proposed by the developer, but this time around there’s more support for the idea in order to drive Lightning Network adoption.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Luke Dash Jr Proposes Temporary 300kb Block Soft Fork

Back in January 2017, cryptocurrency developer Luke Dash Jr proposed a Bitcoin Improvement Proposal (BIP) requesting the block size to be decreased down to 300kb per block. The proposal was submitted months before network fees skyrocketed to $30-50 per transaction, but at the time the mempool (transaction queue) had already started to fill up. Back then the BIP was brushed off pretty quickly, since the scaling debate was starting to peak and people were already upset about the rising fee market.

Fast forward to today and Dash Jr is again proposing to shrink the block size down to less than one third of the 1mb limit. “This patch would enforce a very simple soft fork, reducing Bitcoin block sizes to ~300kb between Aug 1 and Dec 31 — It demonstrates how one can make a truly temporary soft fork,” the developer explained to on Twitter. “Do not run this in production even if you support UASF.”

Core Developer's 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

‘Increase Fees and Move Transactions to Lightning’

Three days later Bitrefill’s John Carvalho told his followers Dash Jr’s plan was something he could get behind. “I agree with Luke Dash Jr that the block size should be smaller. I feel more confident to say it now that we have Lightning Network making strides — I’ll run the soft fork,” Carvalho explained. When he was asked what financial incentives smaller blocks offered, Carvalho replied by bolstering higher network fees.

“I could imagine a few,” Carvalho stated. “To increase fees (doesn’t even have to be malicious, could be for survival). To move transactions to Lightning Network (maybe miners realize they can make easier money by increasing fees on L2, under the right conditions). To reduce costs (new network/web conditions).”

Core Developer's 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

In response to Carvalho’s tweet, the cryptocurrency entrepreneur Vinny Lingham replied to the discussion by saying that he totally agrees with Dash Jr’s plan and has been saying it for a while. “1mb is an arbitrary number and if Bitcoin is going to rely on L2 to scale, then it makes no sense to keep it at 1mb. — Reducing it to 350k as per the research from Luke Dash Jr is practical and can help move transactions to layer 2,” Lingham emphasized. A slew of people on Twitter believed that Lingham’s statement was said in jest, however, and was basically poking fun at the idea. Core Developer's 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

‘Stop the Madness’

However, not everyone agreed with Dash Jr’s concept and Carvalho’s statements about higher fees to push more Lightning Network adoption. One observer on Twitter commented: “Smaller blocks simply means less transactions on the chain, purposefully hard-coding a lower limit — It doesn’t make any logical sense.” However, Carvalho, Dash Jr, and Bitcoin Core developer Jorge Timón simply dismissed the individual’s statements after he said Lightning Network was “centralized, bloated, and overcomplicated”.

Core Developer's 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption

Whatever the case may be, this time around Dash Jr’s concept to decrease the block size to 300kb has been more fruitful, especially for those pushing for adoption of the Lightning Network. However, Cobra the anonymous owner of Bitcoin.org, wants this discussion to end and has asked the community to “stop the madness.”

“A soft fork to ‘reduce the block size’ is a hard fork in all but name and this will split off from the established consensus, cause massive drama, and damage trust in Bitcoin,” Cobra stated. Once again it seems certain cryptocurrency proponents are all about high onchain fees due to their distrust for miners and the hope that the Lightning Network will work as well as Nakamoto consensus.

What do you think about Luke Dash Jr’s idea to temporarily soft fork bitcoin to decrease the block size to 300kb? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, and Twitter. 


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Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.

‘Buy Bitcoin While Nobody Cares’ Says Chinese Crypto Billionaire

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‘Buy Bitcoin While Nobody Cares’ Says Chinese Crypto Billionaire

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Zhao Dong, a Chinese crypto and blockchain influencer and prominent bitcoin (BTC) over-the-counter (OTC) trader, has said that it’s currently a good time to buy bitcoin because “nobody cares.”

Dong’s encouraging statements regarding bitcoin, the flagship cryptocurrency, were posted to a WeChat group, a very popular and widely-used social media platform in China. The Chinese billionaire noted (on February 11th, 2019):

The people who [are currently] paying attention to bitcoin are obviously [a lot fewer] than the [number of interested investors during the] bull market, and … naturally … the prices [are] low right now.

He added that it would be wise to acquire and “hold as much [bitcoin] as possible [while] nobody cares.” When questioned about what he thinks regarding the various trends and developments in the crypto industry, Dong remarked: 

For 2018, everyone should just try to have a good winter. 2020 [will] bring the [crypto] spring … with ‘summer’ [or the digital asset bull market] not expected until 2021.

Tim Draper Predicts $250,000 Bitcoin Price, $80 Trillion Crypto Market Cap

In November 2018, Dong had predicted that the bitcoin price will surge to $50,000 by 2021 (on microblogging social media platform, Weibo). Last year in November, Tim Draper, another prominent billionaire crypto investor and venture capitalist, also shared his bullish views about bitcoin. Draper had predicted that (during 2018) that the bitcoin price would skyrocket to $250,000 by 2022.

Draper’s comments came during a panel discussion hosted by Fortune’s senior writer, Jen Wieczner. At that time, Draper had been asked to confirm whether he was serious about his bitcoin price prediction. The Harvard and Stanford graduate confidently stated:

Believe it, it’s going to happen – they’re going to think you’re crazy but believe it, it’s happening, it’s going to be awesome!

In previous interviews, Draper has said that the market capitalization of all cryptocurrencies will hit $80 trillion. Similar to the way in which other crypto analysts have compared the rise of the internet to the growth and adoption of digital assets, Draper believes the market value of cryptocurrencies will be in the trillions of dollars within the next 10 to 15 years.

Institutions Not Confident About Cryptocurrencies

Notably, individual investors appear to be more confident than institutions when investing in bitcoin and other cryptocurrencies. Giant Wall Street investment bank, Goldman Sachs, which manages over $900 billion in total assets, had warned last year that cryptoassets would “not retain” their value. The New York-based financial institution had argued in an extensive report that cryptocurrencies could not function effectively as money.

More recently, JPMorgan Chase, the largest bank in the US and the sixth largest overall (in the world), had released a report in which it claimed that cryptocurrencies were not being accepted as payment by major retailers. Analysts at JPMorgan had also cautioned that the bitcoin price was unstable and could potentially drop further to around $1,260.

JPMorgan had argued that even during times of economic uncertainty, there were far better investment options than cryptoassets. Analysts at JPMorgan wrote: 

Even in extreme scenarios such as a recession or financial crises, there are more liquid and less-complicated instruments for transacting, investing and hedging.

Former Mt. Gox CEO Mark Karpeles Rejects Brock Pierce’s Plans to Reboot Exchange

Mark Karpeles — the former CEO of the now-defunct Bitcoin (BTC) exchange Mt. Gox — has refuted controversial crypto figure Brock Pierce’s claims he can reboot the trading platform and accelerate compensation for Mr. Gox’s creditors. Karpeles made his remarks in private correspondence with Cointelegraph Japan on Feb. 12.

As reported, Pierce — a crypto entrepreneur who co-founded Blockchain Capital, Block.one and EOS Alliance — is attempting to galvanize a “GoxRising” movement, purporting that creditor recovery would be speedier if certain legal and technical barriers were to be overcome. The plan also includes creating a united, tokenized foundation for creditors.

His long-term aim is avowedly to reboot the platform — which notoriously suffered a hack in 2011 and subsequently collapsed in early 2014, resulting in the loss of 850,000 BTC valued at roughly $460 million at the time and about $3 billion at press time.

In recent comments to Cointelegraph, Karpeles challenged Pierce’s legitimacy in claiming he has the rights and ability to relaunch the exchange. The dispute hinges on a letter of intent to acquire Mt. Gox that was sent from Pierce’s company Sunlot Holdings Ltd. to Karpeles back in 2014. Given that no final agreement was reached, the letter was duly rescinded. As Karpeles has clarified to Cointelegraph:

“The letter of intent is a proposal, which was supposed to result in an agreement within 45 days, on condition of approval by the court, the trustee and/or anyone the court appoints.

As far as I know no agreement was reached within 45 days, nor did the court and the trustee approve such an agreement. We were working with our lawyers at the time in good faith to follow the terms defined there but failed to hear back from Sunlot after they assured they were working on this, including assisting in getting approval from the court.”

Karpeles’ second contention was with Pierce’s claims that his initiative could expedite creditor recovery. Pierce has allegedly claimed it could be settled within a year, rather than the 3-5 years it is currently estimated to take under the stewardship of Tokyo attorney Nobuaki Kobayashi. The attorney was appointed by a Japanese court to act as civil rehabilitation trustee for Mt. Gox’s bankruptcy estate. In response to Pierce’s claims that the process could be expedited, Karpeles said:

“As to distributing assets faster than the trustee, I haven’t heard at this point anything that would make this possible from Gox Rising [sic]. The published plans seem to imply reviving Mt. Gox and creating a lot of complex legal structures which may take time to happen.”

As reported, Pierce’s plans hinge on his success in galvanizing around half of the exchange’s creditors — 12,000 out of 24,000 individuals — to join GoxRising. On this aspect, Karpeles remarked:

“I do not believe ‘presenting a united front’ would help things much, and if anything any attempt to push things against the advice of the court as Brock has done before would likely result in further delays. More than anything I do not believe at this point all creditors would align behind him, so it would likely result only in more divisions.”

As reported in December, Karpeles pleaded not guilty in the final argument for his ongoing trial.  Karpeles was charged with embezzlement of approximately 340 million yen (about $3 million) from Mt. Gox and manipulating the exchange’s ledgers to inflate its cash balance. Prosecutors are seeking a ten-year prison sentence for Karpeles, the final ruling for which is reportedly set to be delivered on March 15, 2019.

Binance CEO Announces Testnet Launch for “Binance Chain” DEX

Binance CEO Announces Testnet Launch for “Binance Chain” DEX

Binance’s CEO, Changpeng Zhao (CZ), has hinted that their decentralized exchange project, dubbed “Binance Chain,” is nearing completion and could be launched as early as February 20, 2019. CZ revealed a few weeks ago that the project would charge at least $100,000 to list coins to eliminate low-quality projects.

Save the Date

As per CZ’s announcement on his official twitter handle, Binance‘s Decentralized Exchange (DEX) is scheduled to be released for public testing on February 20, 2019. Zhao welcomed anyone who would like to provide feedback saying they would embrace any insight on users’ thoughts to aid further improvement of the project.   Zhao Tweeted:

“Finally got a date, Targeting to release Binance Chain testnet (@binance_dex) for public testing on Feb 20th.  This is a testnet; your feedback would be most valuable.”

When he recently hosted an “ask me anything” (AMA) session, CZ exposed fresh details that the DEX project was still under development by the world’s leading cryptocurrency exchange. The CEO explained that they would limit the number of network consensus validators at the beginning, placing the figure at eleven validator nodes. However, as soon as the Binance Chain is up and running, they will be in search of interested parties who can run fast validators.

Liquidity, High-Quality Performance, and User-Friendliness

CZ said during the AMA session Binance Chain wasn’t a smart contract, but an interface that has been designed as a public blockchain whose primary focus will be to allow trading and the transfer of blockchain assets.  The project is expected to ensure liquidity, high-quality performance, and user-friendliness. The Binance Coin (BNB) will be used as the network’s native token. That means that token swaps should be expected soon after the company launches the MainNet.  Explaining further Zhao added:

“Binance Chain is a very simple chain in terms of application, but it can handle huge loads. It is our opinion that the load is more important than the features.”

Centralized and Decentralized Exchanges Will Co-Exist

Should the testnet work as expected, Binance will introduce the mainnet shortly after, which means that BNB could eventually migrate from the ERC-20 token model a few months after that. Once the project is off the ground, Binance will focus on the DEX, something they have always wanted to do since early 2018. Those who use DEXs know that user-friendliness is a significant issue and Binance Chain is expected to address that.

The testnet launch on February 20 will thus usher in an era where Binance’s centralized and decentralized exchanges will coexist. According to Zhao:

“Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence. We stand here today because we believe that Blockchain technology will change the world.”

CZ said during the AMA that Binance chain would initially charge $100,000 to list new coins. The decision to charge high fees is a deliberate move by Binance to try and eliminate scam projects. However, he added that the enormous cost would be reviewed over time.  

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Take Two: Ethereum Is Getting Ready for the Constantinople Hard Fork Redo

If at first you don’t succeed, try try again.

Such are the words of wisdom that have been taken to heart by ethereum core developers ever since a vulnerability in the network’s code was discovered just 48 hours before the code was set to be deployed.

The network upgrade dubbed Constantinople would have introduced a series of backward-incompatible changes – also known as a hard fork – to the world’s second largest cryptocurrency by market capitalization. Yet the bug discovered led to a delay, followed by a plan to try once again in late February.

With the code expected to activate sometime during the last week of February – specifically, at block number 7,280,000 – ethereum core developers are confident that Constantinople won’t fail this time around.

“I suspect it will go as planned. The block number has been set and [the upgrade] is hard coded in the clients now so it’s going along fine,” Hudson Jameson, who handles developer relations for the Ethereum Foundation, told CoinDesk.

Adding that “valuable lessons” are learned from every hard fork, Jameson said that one of the important takeaways from last January’s hard fork attempt was “better communication with miners to let them know about the upgrade.”

While the issue in the code wouldn’t have impacted miners directly, miners and other users who run complete copies of the ethereum blockchain called nodes needed to be swiftly notified about the cancellation of Constantinople to keep it from actually being deployed and creating possible disruptions.

On this front, the smart contract security audit firm ChainSecurity, which discovered the vulnerability, told CoinDesk the organization of ethereum developers was already quite impressive.

“I was just impressed by how quickly everyone reacted and how well organized everyone reacted,” said CTO Hubert Ritzdorf. “Many people had to update so they had to know what to update to. On many different levels it became clear even though there is no central command, the [ethereum] community collaborates very efficiently.”

Called Ethereum Improvement Proposals (EIPs), four out of five EIPs will actually be activated on the main network, or mainnet. And for all technical purposes, the upgrade will be deployed in two parts – simultaneously.

Say hello to ‘Petersberg’

Developers proposed during a meeting late January to table the EIP temporarily and proceed with the rest of Constantinople as planned, determining that a fix to the buggy EIP – EIP 1283 – would delay activation of ethereum’s planned hard fork for too long.

However, given that several test networks on ethereum including Ropsten already activated Constantinople in its full glory before the security vulnerability was found, ethereum core developers also agreed that a second hard fork safely removing the EIP was needed.

Thus, “Petersberg” was born.

Already released on Ropsten, Petersberg is the informal name of the hard fork specifically designed to remove EIP 1283 from a live ethereum-like network. Later this month, the original Constantinople code will be activated on mainnet in conjunction with Petersberg.

“For all practical means for any developer out there on the mainnet, there will not have been Constantinople really, just Petersberg … Technically in the code, you have two conditions,” ChainSecurity COO Matthias Egli explained. “One says Constantinople gets active at block number [7,280,000] and at the same block number Petersberg gets activated, which takes precedence over Constantinople and immediate supersedes it.”

And in terms of what’s left to be done for Petersberg launch on mainnet, Jameson said that all of the testing for its release has been completed and major software clients including Geth and Parity are ready to deploy on the agreed-upon block number.

Now, as emphasized by ethereum security lead Martin Holst Swende, users of ethereum should be aware of important changes to the ethereum network as a result of Constantinople plus Petersberg.

The new ‘corner case’

Tweeting out a questionnaire for users last Thursday, Swende noted that after Constantinople, smart contracts on ethereum considered to be virtually immutable will be able to change code under certain conditions over the course of multiple transactions.

The new feature introduced through EIP 1014 – called “Skinny CREATE2” – is intended to better facilitate off-chain transactions on ethereum by allowing what Ritzdorf describes as “deterministic deployment.”

“When you deploy a new smart contract on ethereum, what happens is that it computes the address to where the contract will be deployed. You know this ahead of time but it depends on a lot of variables,” Ritzdorf told CoinDesk. “CREATE2 makes it easier to say, ‘We will deploy in the future a contract to this particular address.”

As a result of this, Ritzdorf explains smart contract developers could technically deploy contracts for “the second time” to the same address, noting:

“[After Constantinople] you can change code because you can first deploy to that address, destruct the code and then deploy again.”

Egli highlighted that this is “not a security bug” but rather “a corner case” that developers on ethereum should be wary of once the changes are going live. He added that continued education from auditors in advance of February’s hard fork is needed about the other four EIPs originally set for inclusion in Constantinople outside of EIP 1283.

Users anticipating the launch of Constantinople can either go to forkmon.ethdevops.io or Ethernodes to watch the release in real time. A number of other sites are also available for live metrics including mining hashrate and market prices.

According to one hard fork countdown timer created by Afri Schoedon, release manager for the Parity Ethereum client, Constantinople plus Petersberg is estimated as of press time to go live on Thursday, February 28.

Cinema clapper image via Shutterstock

XRP Price Analysis – February 12

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XRP Price Analysis – February 12

xrp-price-analysis-february-12

Ripple, XRPUSD, CryptoCompare chartXRP Chart By Trading View

XRPUSD Medium-term Trend: Bearish

  • Resistance Levels: $0.56, $0.58, $ 0.60
  • Support Levels: $0.29, $0.27, $0.25

On February 8, the XRP price made some bullish gains but thereafter the price pulled back to the low of $0.30. The downward correction has made the crypto’s price fall into the bearish trend zone. The bulls have held on to the $0.30 price level for the third day. On the downside, if the bulls fail to hold on to the price, the crypto’s price will find support at the low of $0.29.

If the $0.29 price level is broken, the crypto will depreciate to the lows of $0.27 and $0.28. On the upside, the bulls are making an attempt to break above the EMAs. If the bulls have a price breakout at the $0.30 price level, the crypto will rally to the highs of $0.33 and $0.40 price level. Meanwhile, the XRP price is below the 12-day EMA and the 26-day EMA which indicates that the price is in the bearish trend zone.

Also, the stochastic band is out of the overbought region, but above the 20% range. This indicates that the price is in a bullish momentum and a buy signal.

XRPUSD Short-term Trend: Bearish

Ripple, XRPUSD, CryptoCompare chartXRP Chart By Trading View

On the 1-hour chart, the XRP price was in a bearish trend zone. On February 10, the bears broke the 12-day EMA, the 26-day EMA and the price fell to the low of $0.30. The crypto’s price has been ranging at this level for the past three days. It is possible that another price breakout is imminent. The bulls are attempting to break above the EMAs.

Meanwhile, the stochastic band is out of the oversold region but above the 40% range. This indicates that the XRP price is in a bullish momentum and a buy signal.

 

 

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