Death of WhatsApp Means Rise of Telegram and Cryptocurrencies

A new generation is adopting Telegram and cryptocurrencies. If WhatsApp goes, the two might boom.

“ Though it has a public-facing Twitter feed, it has not posted since 2016 and often does not inform users of outages. It also has an official “WhatsApp Status” account that once tweeted about issues and when they would be fixed, but that has not tweeted since 2014 — despite a series of high-profile outages since then.”

— ‘WhatsApp Down, App Not Working as Chats Breaking on iPhone and Android’, Independent, January 22, 2019

Let’s face it. WhatsApp will die out sooner or later. Either because Facebook shuts it down itself or another instant messaging app catches up and displaces it. The only reason why we are still using it is because all our friends are on it too. It’s one of those tech startups that starts to lag in innovation after a massive acquisition (like LinkedIn).

The former seems more likely since Mark Zuckerberg himself has ordered the technical integration of Facebook Messenger, Instagram and WhatsApp. Although sources within the company said they will remain stand-alone apps, does it make sense?

The integration will allow users to “communicate across the platforms for the first time”. Once that happens why would anyone use all three if they could connect and interact with all their friends and followers on just one?

One may argue that each of them serves a different purpose. But do they really? As it is, several key features on Facebook Messenger, Instagram and WhatsApp already overlap. Most users also have at least two out of the three on their phones.* If they shared the same underlying tech infrastructure, does it still make sense from both a user and business perspective to keep them separate?

Furthermore, the same New York Times article that broke the integration news said that both the WhatsApp and Instagram founders quit last year due to disagreements with Zuckerberg over the integration. Now that the three companies are effectively under one leader, separation is really just in form and not in spirit.

*In the NYT article, it said that WhatsApp itself had done a study showing that its users mostly overlaps with Facebook.

Telegram Rising

In early 2018, Telegram refused to bow to Russian government pressure to give them access to users’ encrypted messages, leading to a ban on the app. At a time when Facebook was facing severe public backlash over privacy issues, Telegram’s brave stand probably gave it the best PR for recruiting users it had ever had.

Ironically, the technical integration news for WhatsApp raised even more concerns over user privacy for Facebook. Although it was revealed that Zuckerberg ordered his staff to enable end-to-end encryption for all three apps upon integration, cybersecurity expert Davey Winder immediately wrote a piece in Forbes questioning this move. He felt that not only is this technically very difficult to accomplish, it also works against Facebook’s basic business model which relies heavily on data visibility.

On the contrary, much has been written about why Telegram is growing in popularity besides the company’s pledge to user privacy. Briefly, some leading features include:

👥The ability to set up groups with up to 100,000 members

📋Channels that users can set up to broadcast messages to followers

💣A cool self-destruction timer that deletes messages after being read

⚡️Telegram is fast in sending messages and viewing external links

💳A payment API that enables users to conduct e-commerce transactions directly within a chat window

💻Open API’s for developers to build chatbots with transactional functionalities

So in short, Telegram is becoming an all in one messaging, social media and e-commerce platform (Something Facebook Messenger has been trying to do since it bought WhatsApp in March 2015…). While these sort of mega apps have been slow to develop in the West, it is already thriving in the east. I wrote about this in an article on the future of mobile apps which went viral.

But what do all these have to do with cryptocurrencies?

Telegram and cryptocurrencies could be the perfect marriage

As fate would have it, just as I was researching on Telegram, Alexandr Safonov from BUTTON Wallet contacted me after reading my story, “The End Is Near for Mobile Apps”.

BUTTON Wallet is a mobile wallet for cryptocurrencies built inside Telegram as a bot. Safonov says they have about 82,000 users. As far as I can tell, they also seem to be the only Telegram based crypto wallet supporting multiple coins (six types) and 11 different languages.

With technical perspectives from Safonov and his co-founders, Kirill Kuznetcov and Nick Kozlov, I was able to gain a deeper insight into why Telegram was a superior platform for building their mobile wallet.

☑️Cost of user acquisition is very low since Telegram users tend to share useful bots with their contacts, groups and channels.

✅The User Interface and transition logic is simple and intuitive, making both development and adoption easy and fast.

☑️It’s an open source, free platform with highly scalable architecture and compatible with all devices.

Initial Coin Offerings (ICO’s) have been banned on most of the other major social medias, so Telegram has become a shelter for enthusiasts and those looking to raise funds using cryptocurrencies. Telegram itself is funded by a private ICO which raise it $1.7 billion.

Bot mobile wallets like BUTTON will add a new and very convenient way to moving cryptocurrencies around between friends and for e-commerce. Up until now the bulk of the interest in cryptocurrencies have been for speculation or illicit activities.

Telegram’s open source, anti-authority and anti-ads mantra also resonates with the spirit that blockchain and cryptocurrencies were built on, attracting the technology’s ballooning supporters to it. The combination of the two just might push the use of crytocurrencies for online transactions into the mainstream.

Telegram’s new generation of users

Recently a friend who runs a business matching teenagers and undergraduates with part-time jobs told me she communicates with all her part-timers through Telegram. I was surprised. I had always thought Whatsapp had an unshakable position because all your friends were on it.

I asked my 23 year-old staff if she used Telegram. She said that other than her mother who still uses Whatsapp, she communicated with all her friends on Telegram. She was polite enough not to mention the fact that I too text her on WhatsApp… (Admittedly I am nearly old enough to be her Dad.)

Telegram is a platform that is positioned to capture a whole new generation of users growing up with a completely digital lifestyle. It pitches privacy, favors cryptocurrencies and offers features which enable it to be an all-in-one app — a strategy already proven to work in the East.

To be sure, Telegram still has a long way to go. It only has about 200 million users and ranks #9 globally among competitors. Geographically, it also covers very little regions compared to other messaging giants.

But I’m betting that the technical and legal challenges ahead for the Facebook trio of Messenger, WhatsApp and Instagram will indirectly boost the rise of Telegram, in turn supporting mainstream use of cryptocurrencies as a store of value and e-commerce transaction currency.

If it happens, it wouldn’t be the first time in the world of tech where David triumphs over Goliath simply because, the bigger they are, the harder they fall, when they do stumble.

Source:

https://medium.com/coinmonks/death-of-whatsapp-means-rise-of-telegram-and-cryptocurrencies-dc7249a53605

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Posted in Crypto

A Testnet with no Coordinator

We are happy to announce the launch of znet, the first iteration of the Coordinator-less testnet. This testnet has in fact been alive for several weeks, but we would like to officially open it up to community participation and contribution. To that end, we invite community members to join the discussion on Discord, to check out the live visualization of the znet Tangle, to contribute issues and code to the CLIRI Github repo, and of course: to run CLIRI nodes and join the network.

CLIRI and the Coordinator

Let’s take a step back and discuss why we need yet another testnet, and what makes CLIRI special. CLIRI stands for “Coo-less IRI”. At its core, it is a fork of IRI, with all Coo-related components removed. Its purpose is to provide a testbed for running a Coordinator-less IOTA network. This is a necessary first step towards understanding the challenges that a Coo-less mainnet will one day face.

Let us recap what the Coordinator actually does, in order to see what changes we have had to code into CLIRI. Every minute or so, Coo releases a milestone, which is a transaction signed by the IOTA Foundation. All transactions referenced by a milestone are immediately considered confirmed.

On its face, getting rid of Coo appears straightforward: we can just stop sending these milestones, or have CLIRI treat them like ordinary transactions, and we are done. Unfortunately, milestones come creeping back in several contexts:

Starting point selection. In IRI, the random walk starts a few milestones in the past. With no milestones to guide us, we need an alternative method for deciding where to start the random walk. We have come up with a rather rough heuristic algorithm, which works by backtracking from a recent tip until it reaches a point with enough cumulative weight. This part of tip selection is proving quite tricky to get right, and more review would be welcome.

Ledger state calculation. Milestones are used for optimizing ledger calculation. Rather than compute the full ledger state starting from the genesis, we save an intermediate state for each milestone.

Node synchronization. Milestones are helpful for determining when a node has fallen out of sync. If a node’s latest solid milestone is much older than its neighbor’s, it is probably lagging behind.

Zero-value testnet

In order to simplify the first iteration of CLIRI, we have decided to completely remove ledger validation: all transactions are valid, as long as they meet the PoW requirement. This version will be run on a new testnet, which we call znet, which stands for “zero-value’. Our aim is to stabilize this code and establish its resilience, before implementing more complex validation logic.

We would also like to gather more analytics about the performance of znet. For example, we introduced a new getConfidence API, which calculates a transaction’s confirmation confidence, as defined in the white paper. It would be interesting to track confidence levels over time, see what percent of transactions reach a high confidence, and how long it takes them to reach it.

We welcome community participation. You can help by running a CLIRI node, identifying issues, and participating in the discussion on Discord, in the #cliri-discussion channel.

Source:

https://blog.iota.org/a-coo-less-testnet-879ad17ca1af

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Posted in Crypto

US Startup Introduces Crypto Hardware Wallet Chip for Cell Phones

United States startup VaultTel has introduced a hardware cryptocurrency wallet designed to fit in a mobile phone SIM card tray, a press release from the company reveals on March 6.

The solution reportedly combines a mobile application and a hardware chip, dubbed the VaultTel Card. The crypto storage solution will be sold in the U.S. starting today and will “immediately expand” to European countries via VaultTel's United Kingdom subsidiary.

The wallet uses biometric authentication along with the military grade encryption standard, AES 512, the press release reports.

According to the firm, users can lock the VaultTel Card to a single device and to a particular geographical location.

To store funds, customers can either insert the VaultTel Card inside an unused SIM card tray — in the case of dual SIM capacity — or connect the chip to their phone via an accessory, such as a dongle. The corresponding mobile app will then let users interface with their stored funds.

In February, after weeks of rumours and speculations, South Korean tech giant Samsung officially announced at the Mobile World Congress that its new smartphone, the Galaxy S10, will include a digital wallet that supports Bitcoin (BTC), Ethereum (ETH), COSMEE’s token (COSM) and Enjin’s token (ENJ).

Source:

https://cointelegraph.com/news/us-startup-introduces-crypto-hardware-wallet-chip-for-cell-phones

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Posted in Crypto

Is a Bitcoin ETF Possible in 2019?

New year, new crypto?

While 2018 was an awful year for “hodlers” and an amazing one for “bears”, this year promises to invert that scenario with some interesting decisions and events that will shake the market and, perhaps, completely transform its landscape.

You probably heard about Bitcoin ETF recently, but the first one was filed for the Winklevoss Bitcoin Trust on July 1, 2013. Since then, other firms have been trying to work with the U.S. Securities and Exchange Commission (SEC) and U.S. Commodity Futures Trading Commission (CFTC) to successfully bring this well known “product” into Bitcoin.

Why all this hype around an ETF? What is an ETF? Do we really need it? What are the companies and firms working on it? Are we close to having one?

What Is an ETF?

According to Investopedia, the definition of an ETF is:

An ETF, or exchange-traded fund, is a marketable security that tracks a stock index, commodities, bonds, or a basket of assets. Although similar in many ways, ETFs differ from mutual funds because shares trade like common stocks on an exchange. The price of ETFs’ shares will change throughout the day as they are bought and sold. The largest ETFs typically have higher average daily volume and lower fees than mutual fund shares which makes them an attractive alternative for individual investors.

ETFs have several advantages: low fees, tax efficiency, lower costs, buying and selling flexibility, transparency. Usually, this brings more volume into the equation than mutual funds shares which makes them a very attractive financial product, not only to individual investors but also to institutions.

Does Bitcoin Need an ETF?

We can’t really say that Bitcoin needs an ETF. In fact, Bitcoin is trying to disrupt the legacy of the financial technology stack, so things are not supposed to mix well together.

An ETF is nothing more than a well-known solution for professionals investors and companies to invest in assets. A recent survey made by the Bitwise Asset Management corporation states that:

We recently commissioned a formal survey of 150 financial advisors, and a strong majority — 58% — said that an ETF would be their preferred way to invest. When asked what would make them more comfortable allocating to crypto in client portfolios, 54% said “better regulation” and 35% said “the launch of an ETF.” This holds true for many family offices and institutions as well.

An ETF will allow people to buy and sell Bitcoin in their financial account with increased simplicity and trust rather than having all the struggle to create an account at a crypto-exchange or other less known platforms. This fact, per se, not only allows for more prompt and active participation in the market but also handles the custody of the assets. This adds an extra ladder of interest as the majority of people don’t want to be responsible for their private keys.

What Are the Companies Working on It?

Bakkt

Intercontinental Exchange (ICE), the firm that owns the New York Stock Exchange (NYSE), plans to launch a digital assets platform and a Bitcoin futures product, called Bakkt. The company will leverage partnerships with big companies like Microsoft and Starbucks, to allow consumers and institutions to trade, store and spend digital assets.

The first product, a physical Bitcoin futures contract, will allow investors to receive Bitcoin as a return instead of fiat, much like the current futures contracts that are active on the market. On December 31st, they announced that its launch would again be delayed — this time until ‘early 2019’ (originally Nov 2018, then Jan 24th 2019). They want to make sure they have a green light from the U.S. Commodity Futures Trading Commission (CFTC) and have all the funds and tools to provide the issuance of the first product successfully.

Produk pertama, kontrak berjangka fisik Bitcoin, akan memungkinkan investor menerima Bitcoin sebagai imbalan, bukan fiat, seperti halnya kontrak berjangka saat ini yang aktif di pasar. Pada tanggal 31 Desember, mereka mengumumkan bahwa peluncurannya akan ditunda lagi - kali ini hingga 'awal 2019' (awalnya November 2018, kemudian 24 Januari 2019). Mereka ingin memastikan mereka memiliki lampu hijau dari Komisi Perdagangan Berjangka Komoditas (CFTC) AS dan memiliki semua dana dan alat untuk memberikan penerbitan produk pertama dengan sukses.

They recently secured a $182.5M first round of funding from several reputable companies, as it shows the trust and confidence in their ability to deliver solid and robust products.

VanEck-SolidX

After 9 ETFs denied by the U.S. Securities and Exchange Commission (SEC), this proposal got delayed again until the 27th of February of this year. This is the last decision to either approve or reject the ETF. The VanEck/SolidX proposal differs from others in that its value is dependent on Bitcoin itself, rather than futures markets.

Nasdaq-VanEck

Nasdaq, the second largest stock Exchange of the world is partnering with the investment management firm VanEck to bring new cryptocurrency financial products into the market.

According to Gabor Gurbacs — VanEck’s director of the digital asset strategy — their aim is to “inspire confidence with regulators and institutions trying to get involved [in the crypto markets]” :

“What I’d like to point out is we ran a few extra miles working with the CFTC [Commodity Futures Trading Commission] to bring about new standards for custody and surveillance” — Gabor Gurbacs.

By leveraging Nasdaq’s technology and experience, they plan to use their surveillance system, called SMARTS, a software designed to automatically pick-up on suspicious market activities such as spoofing or wash trading. Besides that, they also plan to deliver a trusted pricing benchmark, provided by MVIS. We can expect more details about their first product early this year.

Bitwise

The most recent Bitcoin exchange-traded fund (ETF) was proposed by the crypto-startup Bitwise Asset Management, which states that will address the regulatory concerns that previous attempts had, counting with very experienced people in the ETFs space.

Bitwise wants to use its Bitcoin Total Return Index for the valuation — with spot prices from exchanges and physically settled futures contracts — , like the most recent VanEck/SolidX ETF proposition. They also differ from other offerings by having a regulated third-party custodian responsible for trusty storing Bitcoins.

Are We Close to Having One?

Everyone was positive-biased towards an ETF acceptation by early this year but recent events delayed, once again, that increased expectancy. With the recent USA government shutdown, with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) being closed, all the possibilities of any progress in the regulation and proposals analysis seem to vanish in thin air. Also, as a result of those obstacles, even the main ETF proposal withdrew until further notice.

In the minute 10:45, Jan Van Eck explains the reason for that withdrawal: the main concerns from SEC — custody, price manipulation, price overseas — and the fact that Bitcoin pulled some demand from gold investors in 2017 (but got restored in the last year).

One interesting fact from one of the CNBC commentators is the that we are still trying to understand the real value/price of Bitcoin and only a few months ago have we started to hear the SoV narrative.

The main reason for the withdraw is the fact they can’t keep conversations with SEC. Therefore, a logical decision of withdrawing and “stop wasting time without any progress” was made.

The Reaction of the Market?

No reaction from the market just shows that this event was already priced in.

They Didn’t Lose Any Time Re-Filling the Application

The deadline before the withdraw was 27th February and, with this new re-fil, they earned more time to work in their application. This time, they made some modifications countering some of the SEC concerns.

The clock will start when the proposal gets published in the Federal Register and, assuming that that happens soon, we are looking into a final deadline by early October.

VanEck withdrawal decision was a very smart decision and it demonstrates somehow their vast experience and knowledge about ETFs.

Could 2019 Be the Year of Regulation and Big Institutional Money Entering the Market? Is This the Catalyst to End the Bear Market?

The day a Bitcoin ETF is listed it will be a very bullish milestone for the market but is important to acknowledge that it is just the first door opening for institutional and professional investors, as they will spend some time to research and evaluate the market before recommending an investment to their clients.

Even if all these propositions get declined, this will be very helpful for the market as these reputable companies are working together with the regulatory entities to trace a good path for future crypto products. We will see a lot of products from reputable financial companies coming to the market as soon as the regulation becomes clear.

Disclaimer

The information contained in this artile (the “Information”) has been prepared solely for informational purposes, is in summary form, and does not intent to be complete. In particular, the Information is not, and is not intended to be, an offer to sell, or a solicitation of an offer to purchase, any securities. Any offering and sale of securities by us or any related entity (if any) would be made only on the basis of certain transaction documents and, as the case may be, an offering memorandum and related governing and subscription documents pertaining to any such offering and sale.

The Information does not provide and should not be treated as giving investment advice. The Information does not take into account specific investment objectives, financial situation or the particular needs of any prospective investor.

Source:

https://medium.com/obvious-capital/is-a-bitcoin-etf-possible-in-2019-4dd29c03e7f0

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