Russian Foodie Boris Akimov “Tokenizes” Himself: Offers Expertise and Advice

Russian celebrity, organic food fan, cryptocurrency enthusiast, and co-creator of BioCoin, Boris Akimov, has decided to “tokenize” himself. Akimov, founder of Russian online organic food exchange LavkaLavka, will launch his own cryptocurrency, Akimov coin, on the Waves Platform, a blockchain system developed in Moscow. As of today, Waves has not issued any further details about the coin or its pre-sale date.

“It’s a simple idea in principle,” he says. “I have certain skills, knowledge, and experience, as well as my time — and that is what will be tokenized.”

Akimov coin owners are basically getting discount services for his agribusiness and e-commerce expertise. If demand for his time goes up, so does the value of his coin; If less people requires his time and services, then his coin gets priced accordingly.

“Let’s say I tokenize two days a week of my time, or 16 hours per week, for 832 hours per year. And let’s say that the token expires after four years. That’s 3,328 hours or 12 million seconds. So the plan is to create 12 million tokens, each of which can be redeemed for a second of my time and skills!” he says.

BioCoin

Akimov is one of the creators of Russia’s BioCoin, a so-called utility token that gives users discounts on organic foods and locally farmed products. As per the company, “BioCoin is a token that can help anyone build green future for the whole planet.”

According to its website, BioCoin can be exchanged for products and services in all stores and cafes that are members of the loyalty program. All customers of these companies receive BioCoins as rewards for the purchases of the companies’ products — as coins go up in value, customers benefit. Further, the company asserts that BioCoin can be integrated with many international loyalty systems and “turn” rewards given to clients into BIO token.

“Tokenizing”

Alexey Ivanov, CEO of crypto-investors Polynom Crypto Capital in Moscow described Akimov’s undertaking as follows:

“It’s like buying the time of a popular consultant,” he says. “It’s the old basic principle of economy — time is money. He is tokenizing his time and selling it in advance.”

Akimov’s idea is certainly novel, but he’s not the first to “tokenize.” Moscow-based TokenStars (ACE), launched last year, uses a similar concept to tokenize celebrities and athletes. ACE token holders are investing in the time or the knowledge of athletes like tennis player Tommy Haas or footballer Giancarlo Zambrotta.

“We help promising talents raise funds by tokenizing their income, talent support and time,” says Pavel Stukolov, CEO of TokenStars. “A celebrity’s time is a precious and limited resource, which is a fundamental growth factor. They can do their own personal coin offering and get upfront payment for various exclusive interactions with fans,” he says. After obtaining a person’s token, fans can redeem them for things like meet and greets, lectures, or one-on-one training.


Subscribe to our newsletter

The Bitcoin was not born in 2017 but it certainly hit the mainstream that year, irrespective whether the news that propelled the cryptocurrency to the front pages of newspapers was for the good reasons or not. The returns that the early adopters of the digital currency were able to achieve last year were truly astronomical, as the price surged past key technical levels only to falter just under $20,000 per coin mark. The big brother, Ethereum, also had a very good year with the price surging higher. The gains prompted more and more people to enter crypto markets, in particular, the ICO markets, which experienced their own exponential rise to glory over the course of last year. Again, the demand was fuelled by the expected returns, which did not always materialise, especially given the volatile nature of the coin markets.

While the growing acceptance of Bitcoin as a new medium of exchange apart from fiat currency is net positive for the Bitcoin, the fact of the matter is that the more people join Bitcoin mining, the more difficult it becomes to mine new Bitcoin. As of December 2017, only 5 out of 21 million Bitcoin remain for mining.

The growing mining difficulty for creating new blockchains requires ever-more powerful computers and many of the big server farms need air conditioning to keep from overheating. According to Bloomberg New Energy Finance estimates, the industry’s electricity use jumped almost eight-fold in the past year, and spending on power can eat up 30% to 60% of revenues. To put things into perspective, some experts suggest that Bitcoin mining is consuming more power than used by 159 countries. This is why mining pool solutions are now more popular than ever as it allows to mine new Bitcoin faster.

Mining pools exist as a way for multiple devices to work together across the internet, combining resources towards the mining of a block by co-operating with each other. The mining pay-out is then split proportionally amongst each participant. This method may not be the most rewarding when compared to the solo mining practices but it has its own benefits such as more consistent and frequent revenue stream. The platform provided by Oasis Mining allows users to take advantage of a wide range of mining-related services, with miners also enjoying the option to mine Ethereum and Bitcoin Cash. Mining starts on April 1, 2018, with initial trading pairs: BTC/BCH, BTC/ETH. The company claims to offer industry-wide competitive pre-sales prices along with a transparent pricing structure and immediate withdrawals. The platform does not require lengthy contracts and in fact, the company promises unlimited contract lengths and unlimited lifetime service to reward those who enjoy the service enough to continue subscription. Some of the headlining features of Oasis Mining include the usage of the latest and greatest in mining software and hardware. Furthermore, the company’s farm is located in an area with a stable electricity supply with new mining hardware run at full capacity. The platform offers SHA-256 (S9) miners, the most effective Bitcoin mining hardware.

Last year Facebook reeled in revenue of $40.65 billion and its net income grew by a massive 56%. How does it make so much money from the social network? Well, it does it by monetizing the data that its users voluntarily provide, as well as the data users don’t even know they are providing.

With two billion users of the platform worldwide, Facebook likes to position itself as service that aims to bring the world together. It doesn’t seem to have worked out that way, with fake news and polarisation upsetting the apple cart. And at a more subliminal level, Facebook harvests and positions our data in such a way so that its consumption can become addictive. The news feed, which is at the centre of what Facebook is, has become increasingly cluttered with adverts and inane videos.

Nevertheless, it is still a place where curation produces value, so you might go to Facebook to find the news that matters to you, without having to trawl through numerous less relevant stories on multiple websites. With Facebook, your friends have already done the legwork for you so that the stuff you are most interested in hopefully pops up in your news feed.

The more data that users post, and the more relevant it is to others, all effectively adds to Facebook’s bottom line because it makes the social network more valuable to advertisers.

Additionally, Facebook, quite literally, makes it its business to know as much about its customers as possible.

So although Facebook is free, it comes with the very real cost attached that comes from an external entity owning your data, from browsing history to date of birth.

Centralisation has had its day

To put it succinctly, the centralized platforms own our data. That’s not how it should be but up until now, there hasn’t been the technology – or the platforms – to do things differently. It’s not just Facebook either. In retail there is Amazon, in search there is Google, in apps there is Apple; wherever we look, our data, at one level or another, is in the hands of centralized corporations beyond our personal control.

As it happens, it was Facebook chief executive Mark Zuckerberg who pointed to a different way forward, although to be honest, he is standing on the shoulders of the path-breaking giants of the crypto community who got there first. In his now traditional New Year post on the social media platform, Zuckerberg showed again that he is both the consummate businessman and technologist. He explicitly signaled that the company would begin research into how encryption and blockchain could help to “fix Facebook”.

The downside of centralisation for consumers has of course already been apparent for some time and blockchain start-ups are lining up to provide decentralized solutions.

Giving back to individuals real control of their data will be a cornerstone of an evolving decentralized landscape and Wibson plans to be one of the key “nodes” of the future.

wibson

Wibson is building a marketplace for data for consumers and businesses. Self-sovereignty is all the rage and is a cute way of saying you are in control not. In a practical sense that entails each individual enjoying the transparency that means they know how and who is using their data.

And while maintaining the anonymity of all data providers, data buyers – i.e. businesses – will know where the data is coming from in both a demographic sense and a spatial/organisational sense. That increases the value of data. Think of this from an advertisers perspective – they would be surer about the segment they are targeting because they know the exact composition of the targeted group. And if data providers only hand over their data to consumers on an opt-in basis, it further underscores the veracity and security of the data.

Access to data can be controlled by the owner in the marketplace. When a video goes viral on Facebook or Twitter or Instagram and Snapchat, the content creator doesn’t get paid despite the value they have delivered to the platform. It’s the same with our personal data too. All those incremental amounts of information can be monetized, with access going to the highest bidder, assuming you are happy for a company to have your data. That’s a much fairer way of conducting business.

Which brings us neatly to the issue of control – the individual now has full control over their data, deciding for themselves who, if anyone, gets access to it. Such a set-up also potentially makes personal data more secure too. The Equifax data breach last year should scare all of us and decentralized data marketplaces are a way to eliminate the risk of our data being exposed in the public domain.

The European Union is introducing GDPR – the General Data Protection Regulation – on 25 May this year and all companies handling data will have to be compliant. Wibson’s opt-in system means that buyers seeking access to data on the marketplace will be doing so safe in the knowledge that they are working with validated and compliant information.

Wibson’s marketplace launches in March and you can get on board for the Alpha right now.

The Tezos ICO raised $232 million last July for the blockchain startup. Seven months later, after progress was delayed due to infighting between the founders, the project’s tokens are finally set to launch “in the next few weeks.”

The Tezos foundation raised funds to develop a new cryptocurrency last July through an initial coin offering (ICO) that generated $232 million. While the ICO remains one of the largest by amount raised, contributors have yet to receive the new cryptocurrency because the project’s release has been delayed by infighting between the project’s founders, Kathleen and Arthur Breitman and Johann Gevers.

Gevers, president of the Tezos Foundation — which was set up to oversee the launch and development of the blockchain project — stepped down from his post Thursday following the disputes with the Breitmans. The two had called for the resignation of the foundation trustee last fall, after accusing him of attempting to embezzle money and acting “as a roadblock to the mission.” The Foundation said in a statement that Gevers had stepped down voluntarily, to “optimally support” the mission and was “committed to the success” of the project.

Ryan Jesperson and Michel Mauny will now join the board of the Tezos Foundation, replacing Gevers as well as Diego Olivier Fernandez Pons. Jesperson, who invested in the Tezos ICO, started an international petition last year to oust Gevers; Earlier this month he set up a rival group, the T2 Foundation, to pursue the launch of the Tezos network. Manuny is also a member of the T2 Foundation.

“With the appointment of the two new members to the Board, the Foundation is preparing itself to assist in the timely launch of the Tezos network,” the Tezos Foundation said in a statement.

Moving Forward

This shakeup in leadership clears the way for Tezos to release the tokens, which will facilitate a blockchain network for smart contracts that aims to rival Ethereum. In fact, the price for pre-launch tokens surged more than 10% after the announcement today. Gerves posted on Twitter “TEZOS ACHIEVES IMPORTANT MILESTONE,” sharing the news of the changes.

“After months of very hard work under extremely difficult conditions, I’m very happy that we’ve achieved a good resolution that optimally serves the interests of the Tezos project and the wider crypto ecosystem,” he said.

Tezos had been looking to a February release date for the coins, a deadline that now seems within reach. Speaking at a UCLA event on February 18th, CEO Kathleen Breitman said the company was planning on “going rogue” and releasing the tezzies (as the tokens are known) “in the next few weeks.”

The resolution of the dispute with Gevers also takes some pressure off the project, which ran into other legal problems as a result of the delays and ongoing battle. Tezos has been deflecting rumors of an investigation into the company by the U.S. SEC, and also has been hit with class action lawsuits alleging securities fraud as a result of the delays.

Now, investors are watching with anticipation to see if Tezos and the new leaders of its governing body can deliver — something which seems closer than ever following these announcements and a reinvigoration of the team. 

Power Block Coin, LLC’s proposal to invest $251 million to build a cryptocurrency mining farm in Montana Connections, a special tax district west of the city of Butte, has been given the green light.

This Wednesday, Butte-Silver Bow Council of Commissioners voted unanimously (9-0) to allow Utah-based Power Block Coin, LLC — a subsidiary of Blue Castle Holdings Inc. — to build a campus of high-powered data centres in special tax district Montana Connections. The company plans to spend $251 million on improvements to the site over 36 months.

The Campus

Power Block Coin plans to harness 135-megawatts of power on its campus. As per the proposal to the county, the company will do this by building a substation at Montana Connections, which will be built in two phases over 24 months. Out of the $251 million total, $8 to $10 million will be spent on this new electric infrastructure. The company also plans to spend $60 million on between 70 to 200 separate mining units, each of which would use large amounts of power transmitted through the new substation. The size of these units will vary from larger warehouse buildings to small shipping containers.

The reason for the creation of this campus is primarily to mine digital currency mining, like Bitcoin. In addition, the infrastructure the company builds will also be able to support other businesses that need large amounts of power, such medical research, and artificial intelligence.

“Bitcoin is the fastest growing segment of cryptocurrency. If it tanks, the same processors can be used for medical research or AI (artificial intelligence),” Aaron Tilton, President and CEO of Blue Castle Holdings, said.

Moving Forward

According to Tilton’s interview with The Montana Standard, the jobs available at the campus won’t all begin at once. He estimates they will hire about 15 employees before the end of the year — that number will jump up to about 50 by the time the project is up and running. Salaries are estimated to range from $37,000 per year to $48,000 per year. Tilton said the company hopes to break ground this summer. After that, they expect to have the first data center up and running within 30 to 60 days, and by the end of the year, Power Block Coin anticipates it will have 30-megawatts of power at its campus.

County administrator Kristen Rosa said the county will reimburse Power Block Coin for their infrastructure through the taxes the company generates at Montana Connections — adding that it would only be based on what the company itself invests.

“Power Block Coin has to invest their money, build a substation, they’ll be a big power user,” Rosa said. “It’s not just a Bitcoin facility. We’re not buying into Bitcoin. They’re an aggregator, a campus to allow additional users to come in and use power.”

Data centers are key to the broader Bitcoin project going forward, as fewer coins are available to be mined and computation becomes ever more difficult. The climate of Montana is conducive to mining operations: Located in the West and Northern-most part of the U.S., along the border with Canada, Montana is very cold for a substantial part of the year, which can save miners money on cooling costs (mining operations generate a substantial amount of heat — sometimes leading to disaster).

Power Block Coin’s operation will be the second largest mining operation to find Montana in recent years. Back in 2016, Project Spokane, LLC launched its site near Missoula. It’s already one of the largest energy consumers in the region, housing a 20-megawatt facility and employing at least 25 locals.

Four men have been arrested in Taiwan in connection with a Bitcoin robbery. During the incident, the suspects were able to make off with Bitcoin worth over 5 million Taiwanese dollars – the equivalent of around US$170,000. Authorities have deemed it the first case of Bitcoin robbery in the nation.

Suspects Posed as Potential Buyers of Bitcoin

According to local authorities, the victim was lured to the city of Taichung. He was under the impression that he was meeting a group to sell them Bitcoins.

After meeting with three men, the victim – surnamed Tai – showed them proof that he did indeed have the Bitcoin needed to make the trade on his phone. It was then that the suspects assaulted both Tai and his friend. The victims suitably incapacitated, the three men then sent 18BTC from the wallet on the phone to one under their control.

In an effort to cover their tracks, the suspects then forced the victims to drink a strong liquor known as Kaoliang, which is extremely popular in Taiwan. According to Taichung police, they were trying to pass the incident off as a drunken argument.

Police was alerted by a witness to the altercation. They were able to arrest one man at the scene but the others had already fled. Later, the other men were both arrested. One had attempted to evade capture by travelling to the neighbouring island of Kinmen.

According to Arab News, a statement from local law enforcement released on Wednesday described the incident as the “first domestic case of Bitcoin robbery.” It went on to say:

 “The police saw bloodstains at the scene … after further investigation, it was discovered to be a bitcoin virtual currency robbery.”

A fourth man was also detained in connection with the incident. He is believed to be responsible for planning the entire robbery.

Whilst this is the first case of Bitcoin robbery in Taiwan, it is by no means unique globally. Just last month, a similar incident occurred in the UK. This time, armed robbers broke into a property and held two victims at gunpoint until they transferred an unknown amount of Bitcoin to them.

Also last month, there was an incident of attempted Bitcoin robbery against a company in Ottawa, Canada. During this case, employees of Canadian Bitcoins were held hostage and demands were made for them to send funds to a wallet in the kidnappers’ control. However, the plan was foiled by an additional employee who was able to alert the authorities without being noticed by the criminal gang. They were forced to flee before any transfer could be made.

As the price of Bitcoin and other cryptocurrencies increases, it’s likely we’ll see more incidents of robbery and extortion occurring against holders of digital coins. For this reason, it’s wise to avoid disclosing holdings to others. In addition, care should be taken when trying to trade Bitcoin in person with someone you don’t know.

 

Sunny King, a well-known anonime figure in the crypto industry, has returned to lead a new project called VEE as their chief architect and bring a database platform for blockchain applications.

The VEE team is currently on a promotional spree having visited Korea, Japan, Singapore, Hong Kong and will go over Europe in February.

The 5th generation of Bitcoin

Short for Virtual Economy Era, VEE is an open source blockchain platform that will empower developers to build applications. It has a modular structure, which supports multiple consensus algorithms and a secured network that helps both in-chain and cross chain transactions.

Aside from being a platform, VEE also has a blockchain database cloud feature (claiming to be blockchain 5.0) allowing not only developers but also corporations and industries to create a decentralized and scalable database. To boost the blockchain incorporation of businesses with cloud platforms such as banking, asset management, and trading, VEE will also offer custom created blockchain database options.   

Unlike Bitcoin’s Proof of Work (PoW) mining mechanism, the blockchain fuelling the platform is based on the Proof of Stake (PoS) algorithm. Sunny King and his team were one of the frontrunners to utilize PoS to make the blockchain more energy efficient and develop Peercoin in 2012, which was the world’s first Proof-of-Stake coin. While PoW requires miners to prove a certain level of computational work, PoS wants provers to show the possession of a certain amount of money. This means the one to create the new block is selected in a deterministic way, depending on their wealth, also defined as stake.

Developers and other users of the VEE platform will be able to process transactions and run applications through VEE coins, the native currency of the platform. The ICO is expected to be announced soon. The company plans to provide a wide range of app development tools to accelerate the building process. Though the platform’s public API is free of charge for app developers, there will be a hosting fee. Apart from management costs, this will also cover the maintenance and upgrade of the distributed database.

The King has returned

Being the founder of Peercoin and Primecoin, VEE’s chief architect Sunny King has a long history of developing blockchain based systems.

“The impact blockchain technology would bring to the world could be even greater than those of the Industrial Revolution.” says Sunny King explaining how private property has been the foundation of human civilization until now. “With these visions, we have termed this new economic era the Virtual Economy Era.”

It might be still in the early stages, but VEE hopes it will be able to bring a platform to the blockchain world which will host tens of thousands applications and accommodate millions of users.

Digital solutions will go a long way in the financial industry. Right now, a lot of processes still require manual labor. It is cost-inefficient, cumbersome, and introduces unnecessary delays. The asset management sector can certainly benefit from the performance increase provided by blockchain technology.

Blockchain in the Financial Sector

It is evident distributed ledgers will play a big role in the future of finance. Not just in terms of banking or remittance either. Instead, new research indicates blockchain can revamp the asset management business as a whole. More specifically, the technology can automate buying and selling of funds, which will lead to major cost reductions. Giving investors more bang for their buck is always an option worth looking into.

Looking at the current daily trading volume across the busiest markets, total savings may add up to $2.7bn. That is a rather significant amount which should not be overlooked whatsoever. Using a distributed and decentralized market infrastructure will have many different benefits. Saving on costs is, perhaps, the biggest selling point in this regard.

However, the blockchain will also introduce additional transparency. It will also lead to new industry-wide standards to automate most of the financial entries recorded by different companies. As of right now, most of that information is still inputted on a manual basis. Staffers need to be paid to complete the tasks, which is both costly and time-consuming at the same time.

Transforming Asset Management Solutions

One thing most people don’t realize is how these added costs are paid by the end investor. That is a situation which needs to change sooner rather than later. A lot of money is “wasted” on manual labor which could easily be automated in this day and age. Whether or not blockchain is the best solution in this regard, remains difficult to predict.

Some trials have been conducted in this particular field already. Calastone’s trial in 2017 shows the technology can effectively process transactions a lot quicker. Moreover, it does so at a much lower cost compared to current traditional solutions. A test is not the same as using this technology in the real world, though. Processing millions of transactions every single day is a tall order, even for a distributed ledger.

Another problem in the asset management industry right now is the duplicate information. More specifically, the process of buying and selling funds is subject to duplication. This has been a problem for some time now, yet it seems things grow progressively worse. Something needs to change in the world of asset management in this regard. There is room for improvements and cutting costs at the same time.

It appears there will be more blockchain-based tests related to asset management this year. A lot of financial institutions show an interest in this technology. Calastone may effectively move their asset management services to a blockchain-based solution by 2019. Other players have some work to be done in this regard as well. Distributed ledgers continue to make inroads in the financial sector as of right now.

Digital advertising is an industry prone to disruption in many different ways. Major brands are trying to introduce a new degree of transparency to this industry in the future. Even AT&T and Bayer are banking big on blockchain technology in this regard.

Disrupting Digital Advertising

It is unclear what the future will hold for digital advertising. The current business model suffers from a lack of transparency. At the same time, advertising fraud is on the rise. Something will need to change sooner rather than later. Bayer, the pharmaceutical giant, has been vocal about issues affecting the digital media supply chain.

More specifically, the company warned about fraud and waste since 2016. Ever since that time, very little action has been undertaken to improve that situation. Using blockchain technology to alleviate some of these concerns is certainly an option worth exploring. Bayer is working together with Amino Payments.  As such, Bayer is now experimenting with blockchain-based campaigns. It is a small step in the right direction.

Interestingly enough, there is another major player working together with Amino Payments. That is none other than AT&T, the famous telecommunications provider. That company is also concerned about the fees taken by intermediaries when it comes to digital advertising. There is no real transparency to make any proper assessments in this regard as of right now.

The Role of Blockchain Technology

AT&T has now begun experimenting with blockchain-based advertising solutions earlier this year. They see merit in the “bidded programmatic space”. It is of the utmost importance advertisers know how their budget is being spent. Without any transparency solution in place, it is impossible to determine how that plays out. If advertisers don’t get their money’s worth, there’s no reason to continue with the current digital advertising model.

For the time being, it remains unclear what we can expect from these tests. No official ads have been purchased at this time, by the look of things. There will need to be some experimentation and research first and foremost. Determining the proper value of every intermediary along the supply chain will be a big challenge. The end results will probably surprise a lot of people. Dealing with intermediaries will also result in a lesser efficiency, even in digital advertising.

Combining blockchain with advertising will require a completely different infrastructure altogether. It seems the Amino solution now offers trust and transparency through publisher contracts. It is a step in the right direction, but there is still more work to be done in this regard. Being able to pay for media directly is the end result for both Bayer and AT&T. How that will play out for ad agencies, remains to be determined at this point.

 

The crypto world needs a stablecoin it can trust. In case you are new to this game, let’s explain that a little further. No, we’re not talking about making Bitcoin, Ethereum et al less volatile. That’s something that will likely come with age. Instead, we are talking about solving a problem that confronts all crypto traders – where to hide when the going gets tough?

The market is falling precipitously and as an investor or trader you want to protect your portfolio from losses. If your coins are on an altcoin exchange that doesn’t handle fiat then your options are limited to using a token issued byTethercalled UST or the lesser known Dai token from MakerDAO.

Tether, as its name suggests, has its valued tethered to that of the US dollar. This is what is known as being “pegged” in economics.

For instance, sometimes government’s peg their currency to the value of another currency. For example, The Swiss Franc was pegged to the euro between 2011 and 2015. When the euro cap was removed, the value of the Swiss Franc soared, suggesting that the currency was undervalued while it was pegged to the euro.

What’s wrong with Tether?

Tether is pegged to the US dollar so that its value does not deviate very much from 1 USDT = 1 USD. This feat is achieved by matching the issuance of USDT by backing each one with an equivalent sum of dollars. Currently there are 2.3 billion USDT in circulation, which means there should be$2.3 billion dollars held by Tether. The trouble is no-one knows for sure whether that is in fact the case.

This goes to the root of the problem with Tether but also its alternatives such as MakerDAO and Basecoin, which is currently still in the works – they are centralised systems. Because they are not mined as with a typical cryptocurrency and their issuance is in the hands of a central authority, there is no transparency to their operations. A blockchain startup called Kowala is taking a radically different approach, as we shall see.

Of course this could be fixed in the case of Tether by it having its accounts audited by a reputable firm of accountants, although it should be said that it is not unknown for auditors to sign off on company accounts that have shown signs of what we might be generously describes as a creative application of balance sheet reconciliation.

Up until early this year auditing firm Friedman LLP was providing its services to Tether. The, out of nowhere, at the end of January it was reported that Friedman had “dissolved” its relationship with Tether.

Of the many known unknowns circulating around Tether, the size of its dollar holding is perhaps the most worrisome imponderable. However, there are other  worries, such as who is its banker, why can’t USDT be directly redeemed for dollars and what is the nature of its relationship with altcoin exchange Bitfinex?

On that last point there have been persistent suspicions that Tether, which is owned by the same corporate entity as Bitfinex, may have been issuing more USDT to Bitfinex, which in turn has been using those funds to artificially inflate the price of bitcoin. It should be added that none of those charges against Tether have been proven but neither has the company come forward to dispel the rumors with hard facts.

Kowala stays true to crypto ethos and technology

There has to be a better way ahead for stablecoins and Kowalathinks it has found it.

Rather than relying on the seemingly arbitrary issuance of tokens by a centralised corporation, Kowala has instead chosen to stay true to the ethos and technology of blockchain by letting the market set the value, but then regulating it through a dynamic adjustment of supply and and block reward to control the price.

Kowala’s Yap Consensus provides the algorithms that handle the issuance and mining and crucially it comes with the full transparency of a public blockchain.

Unlike is the usual mining set up where nodes compete to mine, the Yap Consensus is predicated on co-operation. The upshot of that is a blockchain that maintains the security of blockchain with more energy-efficient and, therefore, less costly mining. Kowala does not use proof-of-work in its consensus mechanism, preferring what it dubsproof-of-control, which sets a threshold for the amount of mUSD a node must own before it can mine.

Making mining easy again

The kUSD token which acts as the stablecoin has a partner token called mUSD which gives its owner the right to mine and to a share of the profits. Mining rights can also be leased.

In short then, kUSD is pegged to the value of the dollar but not by owning the underlying asset. kUSD connects to the outside world through oracles that are essentially are data feeds from crypto exchanges. The k protocol is the mechanism that constantly pings for this information in real-time and feeds it into the algorithms of the wider Yap Consensus system.

The block reward, the stability fee that kicks in if the block reward mechanism is insufficient to maintain price stability and lastly the trading activity mechanism that encourages market participants to take advantage of the arbitrage opportunities to push the kUSD price back to $1, areall designed to work best with multiple exchanges in order to optimize price discovery, although Kowala still works with just one participating exchange.

Likewise, the platform is able to function with as few as three active traders on the platform, although it is designed to function at massive scale.

Made for traders, merchants and consumers

Kowala’s mission is to create a cryptocurrency that abolishes volatility while keeping the advantages of the nascent asset class in terms of low transaction costs, speed, security and privacy.

It also holds the promise of making cryptocurrencies easier to use for merchants because it will stamp put the volatility that makes crypto an unreliable unit of account. With that in mind the Kowala team has built a wallet to make using the token a piece of cake.

If this all comes together as advertised, then this could be the stablecoin crypto traders have been waiting forand merchants and consumers too.