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Category Archive Crypto Press Release

ByThomas Glare

How Schnorr Signatures May Improve Bitcoin

Many people heard about bitcoin and its numerous advantages compared to traditional currency. However, what if it can bring even more benefits? Check out the article to find out!

Back when Satoshi Nakamoto started working on bitcoin, one of the challenges in designing the cryptocurrency came from choosing the signature scheme. Satoshi wanted a widely-used, understood, lightweight, and secure algorithm. Another important requirement was being available as open-source, so he went for the ECDSA — Elliptic Curve Digital Signature Algorithm.

It was more or less a set of encryption tools designed to improve the privacy of online communications.  The ECDSA was also very secure, providing bitcoin money with safety without making the entire algorithm too big. 

Ever since bitcoin was launched, the Elliptic Curve used for the cryptocurrency was improved, and we enjoy better bitcoin privacy and smoother bitcoin transaction speed. However, some new technologies emerged that might make the ECDSA obsolete, no matter how much we work to improve it.

You guessed it, the new signature to increase efficiency, privacy, and transparency of bitcoin transactions is the Schnorr Digital Signature. So, no matter if you’re just using it to deposit at your favorite project or you want to learn more about how bitcoin can be improved and what are the implications of this process, this article is for you.

More About the Schnorr Signature and Bitcoin

We’ve already presented the Schnorr signature as an improvement of the currently-used ECDSA algorithm for bitcoin technology. However, this signature scheme is not exactly what you can call “new.” Actually, it was developed in the 1980s by Claus-Peter Schnorr and a team of professors at the University of Frankfurt. Heavily defended with patents, the Schnorr signature couldn’t be used until 2008.

Interestingly enough, this is also the year bitcoin was launched. However, it could be that Satoshi Nakamoto didn’t choose to use Schnorr from the beginning because it hadn’t been that widely used or popular to cryptographers.

Advantages of Using Schnorr in Bitcoin

This isn’t the first time of the Schnorr signature being utilized in bitcoin technology. The first idea appeared in 2014 when Pieter Wuille came up with the Schnorr BIP. The main benefits of implementing Schnorr in bitcoin cover and are not limited to:

  • Security Proof – Schnorr signatures will bring better security for bitcoin since their safety is provable with ease when a random oracle model is used, and the signature is sufficiently strong. The current ECDSA algorithm can’t utilize this system of proving security.
  • Better Non-Malleability – Even though ECDSA was improved a lot over time, these signatures are designed to be malleable. Sure, it takes a lot of resources and knowledge to alter an existing algorithm to be able to spend the same funds twice. However, why live with such a risk when you can remove this vulnerability altogether and make signatures non-malleable by using Schnorr ones?
  • Linearity – since Schnorr signatures enable multiple parties to collaborate and produce a single signature that remains valid for the sum of the public keys created in the process, it can allow higher-level constructions for bitcoin and Blockchain. Imagine a bitcoin option, such as smart contracts or multi-signatures, and the benefits they could bring for the cryptocurrency and its users. 

On top of these proven benefits, other possible improvements can come out. For example, the added computational power can mean faster block validation. Also, being able to aggregate multiple keys opens up an entirely new horizon for making bitcoin support even better.  

Conclusion

It is clear that Schnorr signatures have the potential to significantly improve a bitcoin contract and the way the cryptocurrency can be used in our everyday lives. We’re curious to find out how many of our readers are open to a possible upgrade of bitcoin through Schnorr signatures. Feel free to use the comments section to share your point of view. The more we discuss it, the better we can understand all the implications of such transformations.

ByDavid Adamson

7 Ways AI is Transforming the Cryptocurrency Trading Sector

The ability of AI and machine learning to revolutionize the way we trade has always been a matter of research. But now as we have entered the crypto era and started trading digital currencies, the significance of AI in trading is more than ever.

Amongst the projects and experiments being run worldwide regarding the applications of AI in crypto trading, some have proven to be very revealing about the ways AI can help improve the overall trading industry, especially the way crypto trading works.

If experts are to be believed, AI can bring a number of advantages to crypto trading, including the deeper analysis of historical data, use of advanced algorithms for making predictions based on research, studying the market for changes, among other things.

Besides these, here are some other major ways in which AI is disrupting the future of cryptocurrency trading.

1. Computer algorithms for trading

The use of computers in the trading market is not new. However, in the past couple of years, the percentage of trading through computer algorithms has drastically increased to more than 50%.

This is even more common in the trading of cryptocurrencies, as everything else is digital, so no one wants to trade manually any longer.

It is obvious that trading through AI-based, smart algorithms is faster and more efficient compared to human-based trading and results in fast-decision making, which is crucial for the cryptocurrency trading sector.

2. AI for analysing data and making predictions

The use of advanced technologies such as artificial intelligence and machine learning for analysing the market data, past trends and trades and providing actionable insights for future predictions is now more common than ever.

Projects like Cowrium (Stability AI) are doing amazing things in this area by providing traders with easy and actionable investment advice based on the study and analysis of historical market data, trends, etc. for fast decision making.

3. AI for filtering through zettabytes of data

The amount of digital data is now in zettabytes, which means we have more digital data than we can ever store or use or parse through by natural means.

AI is probably the only technology available to humans that can not only filter through these vast amounts of data but also help us understand and make use of it in a way that makes sense. If not for AI, it would have been too complex to understand this data, let alone make any useful financial/trading decisions based on it.

4. Improved fund performance

There are a number of trading markets, including some crypto trading platforms, that are already using AI and machine learning for help with the overall decision-making process.

Research reveals that AI hedge funds deliver better performance over a period as compared to traditional and manual funds.

Fund Performance

There are a number of businesses that are making use of AI in the hedge fund market for analysing the trends and providing better insights for decision making. While some of these fund managers are only using partial features of AI, others have gone full-AI for trading as well risk-management in their funds.

5. AI Neural Networks for analyzing marketing efficiency

According to a study that involved the use of Artificial Neural Networks for analysing the performance of various markets and identifying those with weak performance, the use of AI in the investment strategy can drastically improve the efficiency and results.

The said study involved testing of the applications of neural networks for analysing the historical market data and predicting the future returns and rates based on the findings. The study was immensely successful, as the use of neural networks helped generate predictions for the future year based on the data of the previous some years. And the produced results were even better than the average results of buy-and-hold portfolios.

6. Identifying market irregularities

For some years now, AI and machine learning are being used by organizations worldwide for studying market irregularities and changes such as acquisitions that are yet to happen and other things that may somehow manipulate the market.

A reputable asset management company reportedly used sophisticated genetic machine-learning systems based on AI to predict a number of acquisitions before they were even published, thus making significantly higher returns. AI algorithms reportedly tracked insider trading signals that enabled them to predict these acquisitions.

By being able to identify irregularities, crypto fund managers all around the world can better estimate market manipulations such as upcoming acquisitions and adjust their portfolios accordingly. Projects like RoninAi are successfully using AI algorithms to predict cryptocurrency market manipulations based on changes in social sentiment indicators.

Big Crypto Drop

7. Prone to financial turmoils

Multiple studies suggested that artificial intelligence algorithms are able to assist with profitable investment decision-making not just in normal times but also they perform well at times of financial disorders.

The organization that was a part of this study managed to make significant profits with the use of AI algorithms, of which most profits were made during the times of financial trouble. This indicates that neural networks are able to provide significant insights even when the market is not doing so well.

Even though the study was performed in standard cases on traditional funds, the same results are expected for digital currencies and funds as well. The use of AI neural networks can significantly assist the whole decision-making process in crypto trading and investment.

Final Thoughts

As we are moving ahead in a world that is largely dominated by competition and increasing demand for resources, understanding and making use of advanced technologies like blockchain and AI can immensely help with our goals of a better, richer world.

AI is a machine intelligence technology that can develop its own intelligence based on the data and information that is fed to it. This type of intelligence can be widely used in not just the finance world but in a range of industries, including crypto trading, for being able to make profitable market predictions and decisions based on actionable insights generated through in-depth study and analysis of the past trends.

ByDavid Adamson

How To Buy Cryptos With A Bank Card

In this blog, I will teach you how you can buy cryptocurrency with a bank card using Coinbase, CEX, Coinmama, Changelly, Bitpanda, and other platforms.

Why should buying and selling crypto be harder than buying a cup of coffee? For a long time buying cryptos was a tricky thing to do. Unless you were very computer-savvy.

But now we have more options than ever when we want to buy cryptos easily. And using a bank card is now possible at plenty of good crypto platforms. Buying cryptos with a bank card makes it easier than ever.

Let us explore the best crypto platforms for buying cryptos safely and easily.

Best options to buy crypto with a bank card

According to us and the crypto community, these are some of the most popular and used options for buying cryptos easily with your bank card.

1 ) Coinbase

Coinbase is one of the most well–known brands for people to easily buy and sell cryptos. And of course buying cryptocurrencies with your bank card (debit card or credit card) is possible at Coinbase.

Coinbase of course deserves to be on this list. Coinbase have made it possible for people to buy and sell crypto easily for years. And is one of the biggest crypto exchange platforms in the world. Why are they so popular? Because they have made it so easy for beginners to buy cryptos with little effort. And using a bank card like a credit or debit card is included.

Head on over to www.coinbase.com to get started. You need an account with Coinbase to buy and sell cryptos there. If you don’t have one, then get started registering a new account. You need to have an ID ready and your bank card that you will link to your account. You can also buy cryptos using a range of payment methods at Coinbase.

Fees

Fees for buying at Coinbase with a bank card is 3.99% of the transaction.

2 ) CEX

Last on this list but not least, is www.cex.io. Where more than 3 million people have joined to buy cryptos easily. Using a bank card is definitely possible at CEX.

To get started you need an account, which takes just a few minutes to get going. At CEX you can buy a range of coins, such as Bitcoin, Ether, Zcash, Dash and Bitcoin Cash. You can buy using a bank card (debit and credit card) or via a bank transfer. CEX established in 2013 and have since become one of the most popular options for buying and selling cryptos easily.

Fees

The fees to buy cryptos using a bank card at CEX.IO is 2.99% using a bank card.

3 ) Coinmama

Third on the list Coinmama.

Coinmama no different than the other on this list. Buying cryptos with a bank card is easy and something you can do in just a few minutes.

Head over to www.coinmama.com and there you can a few banners on the site advertising how to buy cryptocurrencies using your card. You can see there how much in crypto you would get for lets say €100, €500, €1000, or your own chosen amount.

To get started using Coinmama you need an account. But setting one up takes just a few minutes. And it is a similar process as for all other options on this list.

Buying cryptos using Coinmama is very easy, and when you have an account ready you just need your bank card ready to get started. Remember you need a wallet to send your funds to.

Fees

The fees for buying cryptocurrencies with your bank card at Coinmama is 5.90%.

 

4 ) Changelly

First out in this list is the popular option of Changelly.

Changelly has grown to become a commonly used option for crypto investors looking to buy cryptos easily. But also swap them for another coin with little effort. And of course buying crypto with a bank card is something you can do at Changelly.

To get started go to www.changelly.com and then click on on ‘Buy crypto with a bank card’.

After that you decide which crypto you want to buy. And before you complete the purchase it is important to note that you need to have a wallet ready to send your funds to. But don’t worry creating a crypto wallet is easy.

Now if you want to buy Bitcoin you need a Bitcoin wallet, Ether then an Ethereum wallet, etc.

Select the cryptocurrency, and what amount you want to buy for.

Fees

The fees at Changelly are:
Changelly fee 5% and Simplex fee 5% (min $10).

5 ) Bitpanda

Number two on this list is Bitpanda. Bitpanda has since their launch grown very quickly. And is now one of the more commonly used options for Europeans who are looking to buy cryptos easily. At Bitpanda you can buy cryptocurrencies easily using a bank card amongst other payment methods

Head over to www.bitpanda.com and get started if you already have an account. Otherwise register one which only takes a few minutes. When you have an account ready you can get started buying cryptos with a bank card. And you can buy a range of exciting altcoins, such  as: IOTA, Bitcoin Cash, Litecoin, EOS, OmiseGO, NEO and more.

You can of course buy the big guns Bitcoin and Ethereum at Bitpanda too.

Right now Bitpanda is only available for EU citizens. Bitpanda accept a range of direct purchases from fiat currencies like USD, EUR, GBP, CHF

Fees

The fees for buying cryptos with a bank card at Bitpanda is 1.49% so that’s very cheap comparing to other options on this list.

6) Next on the list is Paybis.

The popular, UK-based cryptocurrency exchange has been helping people exchange digital currencies since 2014.

More specifically, Paybis is known for its support of multiple payment methods, including credit/debit cards, bank transfers, and e-money services.

The platform also offers the possibility to buy and sell Bitcoin anonymously, using payment methods such as Advanced Cash and Payeer.

Finally, what we like about this platform the most is its responsiveness. A multilingual support team is online at all times to help users with their questions, and if ID verification is necessary it only takes 5 minutes to complete.

Fees

Fees start at 1,5% per transaction and highly depend on the payment method used.

Common questions when buying crypto

We hope that this guide on buying cryptos using a bank card was helpful. To help you understand even better how cryptos work have we decided to answer some of the more common questions asked by beginners when entering the crypto space.

1 ) Do I need to buy whole coins?

A common confusion is if you have to buy a whole Bitcoin, Ethereum or other cryptocurrency? Which you don’t have to in the world of crypto. You can buy crypto in fractions, so you don’t have to buy one whole Bitcoin.

2 ) What is this I’m hearing about being my own bank?

Another common concern that crypto traders and holders eventually learns about or hears from a more experienced crypto trader, is that you need to be your own bank for crypto.

This means that high emphasis is placed on making sure you are storing your cryptos safely, like how your bank stores your fiat currencies.

This is because many cryptocurrency exchanges today are still less secure. So there are greater risks involved. Another reasons is that not every exchange or trading platform have made it possible for you to store your cryptos there. Like for Coinmama, Changelly and Bitpanda.

3 ) How do I sell cryptos later on?

Buying and selling cryptos should be as easy as buying a cup of coffee these days. So with more options like these five crypto platforms the better. For a long time, it was too difficult to buy and sell cryptos. The fees at these platforms might be a bit higher than at other exchanges. But for the ease of use and simplicity then it might be worth it.

I use these platforms from time to time myself because I just want to buy cryptos quickly. Otherwise, it can take a few days when transferring funds from your bank account. And if you want to buy cryptos quickly to make use of how the market moves then buying with a bank card is a great option to get in quickly.

If you are new to crypto and want to find more helpful guides on getting started then we recommend you reading this guide for best crypto starting tips and if you want to find more platforms to buy cryptos at then read this guide.

ByDavid Adamson

Diem Coin – A New Digital Currency Developed by FACEBOOK

Diem is a cryptocurrency developed on blockchain technology. It is launched by the most popular social media giant Facebook. The main motto behind shaping Diem is to empower millions of unbanked and under banked people by giving them equal financial opportunities and to bring everyone on to a single financial platform.

Diem, will help you in faster and quicker transactions, one can experience the lightning transaction with minimal or no charges. You can sit in your home and transfer money to another person who is in the other part of the world. And to this, all you need is a mobile with data connectivity.

Diem is developed on Blockchain technology, it is a decentralized programmable database that helps in backing the more stable currency, that will have the capability to become the medium of exchange for transacting money to millions of people around the world.

Diem is an independent association, it is a non-profit organization running with a vision to provide basic financial infrastructure and global currency to emancipate millions of people. Libra Association is formed by the compilation of validator nodes, mostly they are academic entities, international corporations, and social impact partners.

The Diem Blockchain is an assigned system that supervises exchange and ownership of Libra. In the process of transacting Libra, there is a slight chance of attacks on the system and here Blockchain helps in defending attacks using LibraBFT.

A perfectly developed and secured software is a must to protect the Diem Blockchain. A new programming language called MOVE is used in Diem. It is a safe and reliable programming language for Libra Blockchain. It is a sensible bytecode language used to implement smart transactions and smart contracts.

Diem is definitely a game changer in the field of cryptocurrency as it is backed by a stable reserve, there is no need of worrying about the fluctuations in the value of the Diem.

Libra Coin – A New Digital Currency Developed by FACEBOOK

Mrbtc.org comes with an interesting infographic on Diem Cryptocurrency, checkout the following infographic and lets us know your feedback on it.

Note: Facebook changed its cryptocurrency project name from Libra Coin to Diem Association. Diem (formerly known as Libra) is digital currency by the American social media company Facebook, Inc. – Wikipedia

ByDavid Adamson

What is Tokenomics? Everything You Need To Know

Tokenomics is the economics of tokens (cryptocurrencies). It is the study of token behaviour to read and analyse the token value over time as well as the factors that affect the token price.

What is Tokenomics?

Tokenomics usually include things like the total number of tokens, token distribution, token holding, token listing, trading, etc. The overall purpose is to incentivize positive growth of the respective token.

Until now, money or currencies were only issued by central banks under the guidance of governments. But cryptocurrencies have changed that. These are decentralized currencies which can be issued by just anyone, even individuals seeking to create their own micro-economies around the blockchain network.

So, basically, tokenomics is all about tokens: how they are created, sold, traded and increase/decrease in value.

How Does It Works?

So, how does it all work? Let’s see. The economics of tokens is governed by factors like token distribution, price, governance, adaption, etc. Let’s discuss each in details.

Token Distribution is how coins/tokens are circulated in the market in order to increase their applications as well as value. This is achieved in many ways. For instance, cryptocurrency mining is an activity where miners are rewarded with new coins. ICO (initial coin offering) is another method that companies utilize to distribute their tokens in the market.

Importance of Tokenomics

Another thing of importance in tokenomics is the price stability of tokens. Cryptocurrencies are volatile in nature, as their value change very frequently owing to demand and supply. Networks need to take care of this by maintaining sync between the supply and demand of their tokens in order to create a stable price.

Since cryptocurrencies are not controlled by any centralized entity such as banks or the government, the team behind a project is itself responsible to devise the rules for the creation (mining), distribution and trading of its tokens. While some projects choose to release all their tokens at once, some others prefer to hold a few tokens in reserve to be released later. The ‘burning’ of tokens is another popular method followed by some networks to help control the volatility of their tokens.

Governance of tokens also involves devising the rules for incentivising people who purchase, hold or use the said tokens. For instance, some networks reward their users for holding the tokens rather than selling them back.

Future Adaptation Of A Token

Moreover, tokenomics also details the future adaptation of a token and defines how the token will change over time. The team or developers behind a crypto project do not know whether their product will work in the future, this is why they need to make provisions to alter the way tokens are operated in the future, if need be. This is crucial in order to maintain a constant interest in the token.

For example, the supply (release, sell and trading) of Bitica coins is completely governed by the underlying rules devised by the team. A total of 18 million coins will be released, not more than that. The rules for the distribution of tokens are also mentioned in the project whitepaper and on the website.

ByDavid Adamson

Everything You Need To Know About X20 Mining Algorithm

The X20 is a new cryptocurrency mining/hashing algorithm which was founded by the Pieta.Network on the concept of the X11 and its successor hashing algorithm.

The fundamental working is the same, which is to increase the hashing of the mining process to make the overall process (and transactions) more efficient and secure. However, the X20 algorithm was created with another major purpose of reducing energy consumption in the crypto mining process.

How does the X20 Algorithm work?

The X20 algorithm is a proof-of-work mining/hashing function which provides a cost-effective alternative to high-end mining hardware such as Application-Specific Integrated Circuits, or ASICs.

The X20 algo works by enabling 20 round of hash functions, instead of just 1 or 2) for each mining transaction, therefore, encrypting each new value with 20 separate hash functions, thus increasing the security and efficiency of blockchain transactions.

Now, the X20 algorithm also speeds up the block creation process to less than 20 seconds by reducing the block size to 2 MB, in the Pieta project. The increased efficiency not only improves the mining speed but also makes it more energy efficient by keeping the mining hardware cool, as more blocks are now produced in less time and with less effort.

As the mining algorithm becomes more powerful, less power is required to produce each new block.

How can the X20 algorithm benefit us?

The biggest advantage of the implementation of the X20 algorithm in the mining process is the increased productivity and profitability for the miners.

But that’s not all, it also makes the overall process more energy efficient.

Benefit for the Environment

As the X20 algorithm limits energy consumption in the mining process by keeping the hardware cool, the emission of harmful gases and carbon is also limited by a great extent, thus making the bitcoin mining process more friendly to the environment. It also helps limit the cost of energy in mining.

Benefit for the Miners

The main benefit of X20 is for the miners who are troubled by the high cost of mining hardware and energy. The use of this algorithm is expected to reduce energy consumption in mining by as much as half, thus effectively reducing the cost of mining and increasing profitability. Low energy consumption means that the overall profits of miners will increase.

Pieta, in addition to the new X20 algorithm, also focuses on the use of green solar energy in the cryptocurrency mining activity, thus limiting the adverse impacts of mining on our ecosystem.

ByDavid Adamson

Hybrids, Debts and Equity Funds: Know The Real Difference

During the past several years, the traditional Investment Management (IM) industry has seen rapid changes with the appearance of well-funded fintech companies, the digital tsunami and the shifting of demographics. Many upcoming finance preferred ecosystem that leverages the digital capabilities in order to provide excellent investment opportunity for the private, retail, and institutional investors. It uses advanced technologies like AI, machine learning, and Robo-advisory to offer a complete 360-degree view of the private and institutional portfolio to the users of the ecosystem.

Coming back to traditional investment methods in the IM industry, it is observed that the traditional investment methods like mutual funds and hedge funds do not guarantee an excellent return to investors due to limited investment opportunities and larger capital requirements. In the recent past, investing in mutual funds has also been considered as expensive by IM industry experts that is largely considered as an anachronistic ETF.

In the cryptocurrency space too, the investors are looking to invest in digital crypto funds that offer high returns with minimum market risk. In order to help investors, modern fintech players are planning to provide active portfolio management capabilities in a ready turn-key ecosystem featured by modern technologies such as Artificial Intelligence (A.I)/Robotics.

Despite rapid changes in the IM industry, it is important for the investors (i.e. private, retail and institutional) to obtain proper knowledge regarding the difference between types of funds in terms of risk, return, tax treatment, and investment opportunity.

Here are the category-wise differences between three major funds, which include equity funds, hybrid fund, and debt funds.

Investment Risk

When it comes to investment risk, the equity funds come on top with a high-risk rating in comparison to debt and hybrid funds. Equity funds are the ones that primarily invest in stocks. In equity funds also, the risk varies in sub-categories. For instance, mid-cap and small-cap are riskier than the diversified large-cap funds.

The lowest risk credit in the equity category goes to index funds, which passively tracks the index. On the other hand, in the debt category, the risk rating is mainly determined by maturity and credit quality. Debt funds primarily invest in different securities like Treasury bills. High maturity generally incurs high risk in debt funds. Lastly, in the hybrid category (debt and equity both), the riskiest category is the balanced funds as it has a greater than 50% exposure to equity.

Return Scale

In obvious terms, it can be simply stated that the returns expected on each type of fund are generally proportional to the risk taken by the investor. One thing that affects this relationship between risk and return is Total Expense Ratio (TER). TER, in simple terms, can be defined as the total cost that incurs to the investor for managing and operating any fund like a mutual fund.

The level of TER varies with active management of funds by the investor. Talking about three different funds, the closely ended and liquid funds have a low TER in debt category, whereas in the equity category, diversified and sectoral funds have high TER and high expense ratio. In the hybrid category, arbitrage funds are largely passive in nature, hence have low TER, whereas the balanced funds have high TER close of 2.5 percent.

Apart from TER, the choice between regular and direct plan also affects the NAV to investors, and as a result, overall return also gets affected.

Keeping this in mind low TER would be the best choice for investors to have a high return in the alpha markets.

Taxation Scale

Talking about taxation, there are broadly two categories, dividends and capital gains, on which taxation scheme of things gets imposed. In the case of dividends, the capital earned is tax-free and is directly handed to investors in case of debt, equity, and balanced funds. However, the Dividend Distribution Tax (DDT) generally varies in each category. For equity, DDT is 10%, whereas the debt category has a much higher DDT of 25%.