Let's get something out of the way first. 0x is pronounced "zero ex" as opposed to "ox" like the animal. That was bugging me so I thought I'd throw that in there. Anyways, this Reddit thread is buzzing about what they're calling "The Second Coming" of 0x.
0x version 2.0 has just been announced at the Fluidity Summit and there's a lot you need to know about the changes that have been made. First, let's look at what 0x is so that we can better understand this latest update.
According to them, 0x is "an open protocol that facilitates trustless low friction exchange of Ethereum based assets."
A bit of a mouth full, I know, but 0x isn't that difficult to understand.
With the sheer amount of ICOs and coins floating around out there, it can get pretty chaotic. There seem to be new coins popping up constantly and it's getting difficult to keep up. Give it a couple of years and don't be surprised if you see thousands of companies and assets being digitized on the blockchain.
0x's mission is to make it easy to go from one token to the next on the blockchain.
0x is a protocol for decentralized exchange. Keep in mind that 0x doesn't run its own decentralized exchange. However, they make it easy for anyone else to do so by using their messaging format, their system of smart contracts and their developer tools.
You could look at 0x as a set of rules of how you can go about exchanging from one token to another if you use the 0x platform.
Why should you care about 0x?
0x is trying to make transactions from one token to another a whole lot faster. They're also trying to reduce costs. Exchanges such as Kraken can be pricey, especially for companies that are just starting up and trying to get their first projects off the ground.
Ultimately 0x is attempting to foster the speed of the Ethereum network and attempting to build partnerships and goodwill amongst various companies.
The below information is explained in-depth around 2:09:20 in the video. Also, visit www.fluiditysummit.io to view the program and schedule of the Fluidity summit.
Version 1 only allowed for trading of ERC20 tokens. With the new version 0x is making it very easy to add asset types to the protocol without having to upgrade the entire protocol.
0x will support ERC20 and ERC721 (NFT) tokens out of the box. Potential future assets: ERC223, ERC777, ENS names, and security tokens.
Different schemes have varying degrees of security, flexibility, and ease of use.
In addition to supporting ECDSA, EIP712, and Trezor signatures, users will be able to define their own verification functions within smart contracts(allowing for multisig, BLS, ring singnatures, etc)."
It is now even easier to integrate 0x into external systems of smart contracts.
Developers can create contracts that add logic before/after interacting with orders. Relayers enforce that orders are routed through these contracts, enabling ideas such as permissioned liquidity pools.
New features have been added to take full advantage of the trustless nature of blockchains.
Traders can now match orders atomically with no upfront capital, drastically lowering the barrier to entry for arbirageurs and matching engines.
Additionally, it is now possible to bulk cancel any number of orders with a fixed size transaction, lowering costs for frequent traders."
Ultimately 0x protocol 2.0 will be much more flexible and easier to build on top of and it will be able to much better handle the emergence of any arbitrary asset types.
The term "cryptocurrency" seems a bit broad, doesn't it? I'm sure there are a ton of people out there who don't know that there are different "categories" of cryptocurrency. Trust me, they're not all the same.
The term cryptocurrency does an excellent job of highlighting the attributes of some coins, but it certainly doesn't capture the true essence of every coin out there. So let's break it down. Let's look at the different categories of cryptocurrency.
This is the one that everybody knows about. Bitcoin and Litecoin fall into this category. Currency cryptocurrency serves as a unit to be exchanged and a store of value, much like real-world dollars. Keep in mind that Currency cryptocurrency is only as valuable as people make it. Right now, Bitcoin is very valuable indeed.
Utility cryptocurrency creates an infrastructure that can be built upon. One popular example of a Utility cryptocurrency is Filecoin. Filecoin gives developers unique ways to retrieve and store data by creating a decentralized storage network. Another example of a utility cryptocurrency is Ethereum, which allows developers to create smart contracts.
As the name suggests, Platform/App cryptocurrency is a cryptocurrency version of an app or platform that's built on top of a "Utility" cryptocurrency. Take Augur for example which has been built upon Ethereum. The result is a decentralized outcome market. Let's say you place a bet on the next super bowl. If your prediction is correct, you make a profit.
Don't let the "currency" in "cryptocurrency" fool you into thinking that every coin out there operates like Bitcoin because quite frankly they don't. Each category of coins has their own incentive alignment, structures, and unique technologies.
@samuele Good question. My money is on the Netherlands, but when the taxes start raining down from the heavens nobody knows what's going to happen!
I recently did a post on countries that shun Bitcoin and other cryptocurrencies. Well, I was inspired to do a bit of research on countries that are the friendliest and most welcoming of Bitcoin.
This article does a great job of breaking down 4 of the friendliest countries, but I've summarized the gist of the article below.
Japan's Financial Services Agency has approved 11 companies as operators of cryptocurrency exchanges, according to the article. This demonstrates that Japan's stance on crypto is overwhelmingly positive though there are a few caveats. For one, these exchanges must have in-depth knowledge about the customers they're working with. They must also adhere to strict anti-money laundering requirements.
There has been a trend of Asian countries that either shun or have outright banned crypto (China for example). Perhaps Japan will provide the shining example they need to see the light? One can only hope.
The United Kingdom has always been friendly to anything remotely related to the financial industry. Seeing that Bitcoin is a currency based cryptocurrency (sounds a bit redundant doesn't it, but I promise I'll do a separate post on the various "types" of cryptocurrencies), it's no surprise that it's welcomed wholeheartedly in the UK.
Furthermore, there are no regulations from the financial institutions in the country. Interestingly enough all British enterprises that deal in crypto regulate themselves according to the rules set in place by the Financial Conduct Authority (FCA), the system that governs UK financial enterprises.
Denmark is yet another country where Bitcoin can be used freely without any form of regulation. The Financial Supervisory Authority has made it clear that if you want to start a crypto-based exchange/business, they're not going to stop you. In fact, Denmark, as well as Sweden (who happen to be neighbors), are trying to do away with physical money altogether. That means they're more open to adopting crypto.
The Netherlands is easily the friendliest country when it comes to accepting Bitcoin. They're slowly trying to convert their population to accept Bitcoin as an everyday normalcy. With no regulation, however, there have already been issues regarding criminal activities such as money laundering.
The Netherlands is also home to Arnhem AKA the Bitcoin City where a ton of businesses and citizens use Bitcoin on a daily basis to make transactions. I don't know about you guys, but I think I'm moving to Arnhem!
What are your thoughts guys? There are plenty of countries that belong on this list. The conclusion of the article makes a great point about these countries serving as hotspots for meetups, trading and so on. I believe that we will see a number of global "safe havens" that wholeheartedly accept crypto as opposed to places who show aversion to crypto or outright ban it. It seems to me that the world is polarizing. That's certainly food for thought.
It's awesome to see more and more companies accept crypto as a viable payment option. This is a trend that I hope continues. The list is growing quite large indeed. I'll definitely check you guys out.
He's worked hard to become the successful investor he is today and he's built his company on the principle of "staying the course". Perhaps it frustrates him that people are looking for "easy money" by investing in crypto instead of working their asses off to accumulate true wealth like he has.
The release of Casper version 0.1 has just been announced, and the crypto community is preparing for major changes. If you've been keeping your ear low to the ground in the Ethereum community, you should be aware of how the project will be switching from a proof-of-work protocol to proof-of-stake.
Let's break this down a bit for the sake of understanding. Proof-of-work protocol relies upon a pool of miners to use their resources to record transactions and create new blocks. These resources include computers, processors and ungodly amounts of electricity.
Miners add to the blockchain by solving cryptographic puzzles to "mine" a block. When one of these complex puzzles are solved, the miner then presents their block to the network to be verified.
As you might imagine, your average Joe doesn't really stand a chance against the massive computer farms that companies and enterprising individuals with deep pockets are able to throw together to mine Bitcoin, Ethereum and other cryptocurrencies.
Casper, on the other hand, now gives any member of the Ethereum platform the ability to create new blocks by replacing miners with validators.
This is how it works: A validator can stake their own coins to validate a block that they feel can be added to the chain. If the block is added to the blockchain, the validator will be rewarded. The bigger the bet, the bigger the reward.
If anyone attempts to cheat the system, punishments will be meted out to the perpetrators. In other words, their stake, the amount they put up to bet, will be slashed.
Casper is designed in a way that protects against abuse of the system by enacting punishments to those who attempt to cheat the betting process. In past POS protocols, malicious elements had virtually nothing to lose. Casper changes all of that.
Keep in mind that there are still possible problems that have people on edge. Individuals with more resources at their disposal can bet more which gives them more control. This will potentially give the rich an advantage over the poor.
It's feared that a small group of highly wealthy individuals will be able to gain control over the system, much like how larger mining pools with massive computer farms are able to "out mine" smaller operations. It all comes down to resources. The more you have, the bigger your edge.
In a sense, Casper is somewhat akin to Plutocracy. Plutocracy occurs when a government is ruled by the elite. In the case of Casper, this will potentially create a semi-centralized platform in which the few have power over the many. Whether this will truly be the case has yet to be seen.
Casper will completely change the way we mine Ethereum. Though it has its pros and cons we can only sit back and wait to see what the future holds.
@cryptoqueen Correct me if I'm wrong, but I believe Kenya's stance on crypto is also influenced by fears of possible "terrorist activities". Whether their statements are actually based on fact or simply made up to hide their true aversion to crypto, no one actually knows. The Central Bank of Nigeria (CBN) is the same way. Perhaps this is a trend amongst African countries? I'll have to look into it.
Hey guys. I just thought I'd throw up something for you all to digest. Due to the unregulated nature of crypto, there are a LOT of governments getting nervous. We mostly hear about the countries that largely embrace Bitcoin and Blockchain technology, but we don't really get that much news on the countries that are cracking down on crypto (or maybe I just don't watch enough news).
More specifically, there's a lot of central banks getting nervous. Money has always been traditionally centralized through banks. But crypto is threatening to upset this ol' traditional system of ours. I just found it interesting how many countries are resisting crypto.
I threw together a short list of countries that fall into this category.
So from what I've seen Venezuela is easily amongst the worst offenders. People have been arrested for using Bitcoin which is absolutely mind-blowing, though who could blame them. Their economy is complete crap right now. It's insane. Just Google "Venezuela current affairs". It's crazy over there guys, no joke.
Technically speaking, Crypto is illegal in Iran, but nobody's really enforcing anything. They're playing a "wait and see" game right now.
Now we have Bangladesh. These guys aren't playing around. Their central bank has warned people not to use crypto and apparently you could face up to 12 years in jail for trading, which puts Venezuela to shame. Haven't heard of any mass roundups or anything. They're probably just trying to scare people.
In Iceland crypto is actually illegal because they're afraid of capital flight (when money basically flows out of a country like an uncontrollable stab wound).
Bolivia also banned crypto trade due to fears of monetary instability. They're also afraid of tax evasion issues, which could very well happen.
There are a lot more countries who have zero love for crypto. My thoughts on the matter: crypto is dangerous (to central banks and such). It's unregulated. It can't be taxed (not yet anyway). It can't be touched by the world's governments. It can't be touched by the world's BANKS and guess what that means. Less money in the pockets of bankers and the other shady individuals who handle our money (that might just be the conspiracy theorist in me).
These are just my thoughts guys. If you know of any other countries that belong on this list please throw it in the discussion.