Chainalysis presents “Know Your Transaction” tool

The new application of Chainalysis, KYT (“Know Your Transaction”), checks crypto transactions in real time. It supports companies and financial institutions in fulfilling KYC requirements. In addition to the blockchain of Bitcoin (BTC), the tool should also be able to read the transaction data of Bitcoin Cash (BCH). Chainalysis would like to integrate further crypto currencies.

In a blog post, Chainalysis, a company specializing in blockchain analyses, explained that the new tool (KYT) is intended to help clarify illegal activities such as money laundering. In order to implement compliance for the prevention of money laundering, financial service providers must be able to understand the intentions behind each individual transaction. Chainalysis KYT creates real-time feedback and sends it directly to the transaction processors of the respective financial institution or exchange. Compliance officers can create alerts and report suspicious activity via a dashboard. In the test run, the account checks allegedly ran twenty times faster than usual.

What do KYC and KYT mean for crypto trader?

The name of the tool Chainalysis KYT derives from the term “Know Your Customer” (KYC). Anyone wishing to offer financial services must comply with the KYC requirements of the relevant criminal authority. In other words, the financial services provider must know certain data about its crypto trader customers on government order in order to make illegal transactions like Is Crypto Trader a Scam? Beware, Read our Review First as difficult as possible. There are no international guidelines for KYC. However, basic data such as place of residence, dates of birth and nationality are always included. Most financial institutions also require photographic evidence of passports, tax IDs and/or social security numbers. Anyone who has already registered on a Bitcoin exchange knows this procedure.

Crypto analyses for banks and governments

The newly developed program, KYT (“Know Your Transactions”), now extends this principle to transactions in blockchains. Chainalysis intends to offer the new product to exchanges and financial institutions worldwide. So far their products only support the Bitcoin blockchain. In 2018, Bitcoin Cash and at least eight other crypto currencies will be added. At the same time, the company announced that the venture capital company Benchmark and its new general partner Sarah Tavel will support it with a Series A financing of 16 million US dollars.

Chainalysis has received much recognition from the law enforcement community for its central role in clearing up the Mt Gox hack. Since then, her clients have included the FBI, the DEA, Europol and related UN agencies. The analysis company’s products also include a tool called Reactor, which automatically locates linked wallets and transactions.

A pinch of salt

The analysis of the blockchain also leads to problems. The fungibility of Bitcoin could then finally say goodbye. Fungibility refers to the fact that the individual units of a currency are all the same. That means, they are worth the same amount and can be exchanged among each other arbitrarily. However, if the history of a Bit coin is known, some coins are “blacklisted” – i.e. they may no longer accept exchanges. This reveals a critical problem: How should a currency work if the units have different values?

SAPPHIRE 2018: Further Blockchain Adaptation with SAP

At the SAPPHIRE conference, SAP announced some blockchain-relevant news. The SAP Cloud Platform Blockchain was presented as Blockchain-as-a-Service platform. The company also announced the formation of a Blockchain consortium with well-known companies.

SAP has been quite active in the blockchain area for some time now.

Bitcoin news has written about this commitment in various places

At this year’s Bitcoin news conference, the SAP event of the year, the company presented three major innovations: Firstly, a blockchain consortium is to be founded with various other companies. Even more interesting is that the launch of the SAP Cloud Platform Blockchain was announced at this conference.

Finally, a presentation was held together with Modum in which Torsten Zube from SAP and Marc Degen from Modum jointly presented a use case. The cooperation between the two companies in return for the first two is not a complete novelty, but both companies will present the result of their cooperation at SAPPHIRE.

All innovations are aimed at supporting blockchain adaptation in the industry. A study by Gartner at the beginning of May showed that the majority of companies still have no interest or expertise in implementing the blockchain in their companies.

From SAP’s point of view, blockchain solutions that are easy to implement and a consortium of cross-company communication would be important steps in blockchain adaptation.

The Role of the Blockchain Consortium

The corporate world cannot simply be described as “we against all”. Even though different companies in the same industry are often competing against each other, there are always challenges that can best be tackled together. In a world with increasingly networked value chains, cross-industry communication is also necessary.

In terms of blockchain technology, such communication and cooperation is even more necessary. The trend in industry 4.0 also includes decentralized production, the backbone of which can form the blockchain. The realization of this vision of a network of supply chains requires the cooperation of various stakeholders.

SAP has therefore founded a worldwide blockchain consortium. The goal of this consortium is to advance blockchain adaptation in various industries by defining common industry standards. Besides SAP, A³ by Airbus, Hewlett Packard and Intel are co-founders of this initiative.

SAP Cloud Platform Blockchain: Blockchain Services for All
The aim of the SAP Cloud Platform Blockchain is to create a platform with which every SAP customer can quickly deploy blockchain technology in their company. With this platform, users can quickly write their own blockchain applications or extend existing solutions with a blockchain.

Both Hyperledger Fabric and MultiChain will be available as private blockchain solutions. Since SAP believes in a technology-independent approach, it is planned to integrate further blockchain technologies in addition to the two mentioned.

With the SAP Cloud Platform Blockchain and the founded consortium, the company is taking a further step towards blockchain adaptation.

Russian Federation RACIB plans Bitcoin Formula

The Russian Crypto and Blockchain Association RACIB is planning a crypto park in the Russian special economic zone Stupino. The large-scale project will make it easier for companies and start-ups to publish new crypto currencies (ICOs) and offer developers an attractive programming environment. Worldwide, several model projects in a similar form are already attracting industry companies to their latitudes.

Stupino is already one of Russia’s most important Bitcoin formula hubs

All kinds of private Bitcoin formula investors have settled in the special Bitcoin formula economic zone. Start-ups and newcomers benefit from the infrastructure and preferential conditions for licenses and permits. If the RACIB is to be followed, crypto and blockchain companies will now also follow and pitch their tents here. The Russian news portal Cryptorussia reports on the association’s plans this week.

Although the RACIB website still lacks concrete information, Cryptorussia says that the aim of the project is to order the environment for ICO fundraising, blockchain software and app developers with the help of the Russian blockchain platform Universa. In this way, the association wants to create incentives for companies and attract founders to the Moscow suburb.

In addition to synergy and inspiration, however, the crypto park also focuses on a further incentive. In particular, the industry’s expenditure is to be kept low. This should lead already established, specialized companies from Moscow to Stupino.

“We are planning our crypto park in a special economic zone. This will allow us to make use of the expertise of specialists from Moscow. The comprehensive platform for ICO fundraising will be the most effective way to model a future digital economy from crypto ruble and blockchain taxation,

Zamir Akimov, RACIB Vice President, describes the project according to Cryptovest.

Stupino, however, is supposed to attract newcomers to the company, especially due to the fact that the overall project follows the new guidelines of the Russian Ministry of Communications. These were made public last week. Among other things, they stipulate the use of the rouble for the successful accreditation of ICOs. As part of a larger legislative package to regulate crypto currencies, they are to be passed by the Russian State Duma by July.

Worldwide sponsors set the example

The model of the project is likely to be the worldwide budding bait attempts for crypto- and blockchain companies.

The Swiss canton of Zug, known as “Krypto-Valley”, for example, is now known throughout Europe and has become a sought-after location for Fintech companies. The Krypto Valley Association, among others, is based here. With the support of the Federal Council, it pursues the goal of establishing a globally leading blockchain ecosystem in Switzerland.

Neighbour Liechtenstein has similar plans. As has been known since last week, the dwarf state is also planning new incentives for Blockchain companies. For example, Liechtenstein wants to regulate companies as little as possible and thus direct more economic power into the Alps.

After all, the model is also making fashionable outside Europe. The Indian state of Andhra Pradesh, for example, is promoting the settlement of blockchain developers and the use of published software in public space, for example in land surveying, as part of the Fintech Valley Vizag initiative.

All in all, Stupino will probably not lack best practices and benchmark orientation.

Altcoin Deep Dive

Mt.Gox, Cryptsy or Bitgrail show that centralized crypto exchanges contain a single point of failure. However, as recent developments around Etherdelta and IDEX show, this can also be said about decentralized exchanges. 0x tries to increase the decentralization of a DEX by providing a protocol.

The cryptosoft market’s crashing

Do you really want to hear about interesting cryptosoft projects? Here is an important review. In any case, the 0x price has almost reached the much-cited floor. However, it remains to be seen whether this is the lowest floor or whether more basement floors will open up. So the bear is raging through the market again. In these times, it is important to analyze projects more closely with regard to technology. 0x now makes the start with the relaunch of the New Coins on the Block.

Crypto exchanges contradict one of the central visions behind crypto currencies. Bitcoin, Ethereum, and other crypto currencies may be as decentralized as possible, but when the bridges between different systems are completely centralized, you still have a single point of failure. A buzzword that promises a solution is that of the decentralized stock exchanges, or DEX for short. DEX stands for Decentralized Exchange.

There are different approaches for such bridges between different crypto currencies. Today we would like to limit ourselves to the simplest type of decentralized exchanges, namely those on which ERC20 and other tokens issued on Ethereum can be traded.

The dramas around EtherDelta and IDEX show that not all gold that glitters is decentralized. However, several other projects are trying to increase the degree of decentralization. One of them is 0x. We have reported about this project several times. So it’s high time for a deep dive.

0x – A protocol (not only) for decentralized stock exchanges

It is important to emphasize that 0x itself is not a decentralized exchange like EtherDelta or IDEX. Rather, it is a protocol which is suitable for setting up a DEX. As interested parties can read in the White Paper, this protocol is not only about the creation of platforms on which Ethereum-based tokens can be traded. If only a fraction of the token-based projects become really used dApps, a common standard for the communication between them is necessary.

Originally, only ERC20 tokens could be traded via the 0x protocol – which would not fit apps based on ERC721. Non-fungible tokens have become known with the Cryptokitties hype. For the exchange of different Collectibles a focus on ERC20 tokens would not help. With the launch of the 0x version 2.0 at the end of September this is now possible. In addition, the Smart Contracts on which 0x is based now have a modular structure so that in principle other token standards can also be implemented.

Such approaches are possible due to the pipeline-like structure of the Smart Contract. The core is always retained, while different modules are written for different token types, for example. Unlike other decentralized Exchanges, this allows fast changes. In addition, modularity makes them easier for the user to recognize and evaluate.

War is over: Bitcoin Cash ABC wins out

In the turmoil surrounding the two versions of Bitcoin Cash (BCH), Craig Wright’s Bitcoin SV is waving the white flag. Calvin Ayre, head of CoinGeek, the most important SV mining pool, personally admits defeat to his coin. The fog lifts with a top 10 listing of Bitcoin SV (BSV).

Bitcoin loophole is amazing

The deeper you dive into the rabbit hole of the Bitcoin loophole opponents SV and ABC, the more absurd the behaviour of the actors seems. While BCH already started with the goal to push Bitcoin from the throne, Bitcoin Cash SV started a few weeks ago to push BCH from the throne. Does that mean Bitcoin Cash SV is the real Bitcoin Cash, is it the real Bitcoin? We’ll leave it at that, because: The “BCH-Forkception” has come to an end. Winner by points, but without technical knockout: Bitcoin Cash ABC, prominently presented by onlinebetrug.

It was a competitive match. Both players started with strong support, as there was a lot at stake in the end. Because BCH is one thing above all else: one brand. So it was especially the dispute about who was allowed to wear the BCH trademark and the associated ticker on the Exchanges. Since BCH is the fourth largest crypto currency in terms of market capitalization, it was simply a matter of a lot of money.

Calvin Ayre throws in the towel

In view of this, it is all the more astonishing how noiselessly the fight ended. Through a blog post on CoinGeek, SV patron Calvin Ayre waved the white flag: “We don’t want the name Bitcoin Cash BCH anymore, because Bitcoin SV is Bitcoin and not Bitcoin Cash (whatever that means).”

You can’t help but get the impression that the players are slowly losing the overview of what they actually want to be and which spin-off is really implementing “Satoshi’s vision” to stay in the BCH vocabulary.

In the turmoil of recent weeks, billionaire Ayre has played a decisive role. His mining pool CoinGeek contributed at times with over 60 percent such a considerable part of the Hashrate that decentralization could no longer be spoken of. According to Coindance, CoinGeek’s Hashrate is currently only 13.19 percent, but SVpool now accounts for a good 63 percent of the cake.

Accordingly, Ayre’s surrender is the decisive signal for the end of the Hash Wars. This was long overdue anyway, as ABC had the nose in front over the entire period of the race – albeit at times narrowly. With the top 10 listing of Bitcoin SV on Coinmarketcap, the result can be considered official. To say it with John Lennon: War is over.

Catalonia & Blockchain – Help from Estonia

While separatists and anti-Separatists meet in Catalonia, the rest of Europe follows this spectacle with some displeasure. Would it even be possible to split off? Wouldn’t they also have to leave the EU and wouldn’t that be fatal for the economy? Interestingly, Estonia could help out here with its advanced technology.

The situation in Spain should be clear from the recurring efforts to achieve independence. Especially since the referendum on 1 October, the media have been reporting more about the autonomous region of Catalonia.

Yesterday evening new interesting topics came to the attention: the blockchain and the Bitcoin secret

The newspaper El País yesterday published an article on the Bitcoin secret cooperation between Catalan politicians and Bitcoin secret experts from Estonia. Immediately afterwards the page became the target of a DDoS attack. Estonia is known for its state-of-the-art blockchain technology, which protects the administration in the country with its 1.3 million inhabitants and allows a lean, cheap and efficient state.

The eResidency program from Estonia (see our Bitcoin & Blockchain report) allows anyone to open a digital citizenship in Estonia and thus access services within the EU. Finns, Russians, Ukrainians and Britons make up the vast majority of eResidency users, but many Turks and Greeks have also signed up recently, explained Kaspar Korjus, Managing Director of the eResidency initiative.

How need digitizes states

While Estonia was only dependent on digital opportunities because of its heavy Soviet past, Catalonia is considering enforcing its independence by withdrawing power from the central bank. According to Dani Marco, director of the SmartCatalonia initiative, he was inspired several times by visits to Estonia. For Marco, bringing out his own digital currency would probably be the most important step towards independence.

Estonia itself wanted to launch a so-called “estcoin”, but the idea seemed so dangerous that even ECB President Mario Draghi felt personally drawn to an answer:

“No member state can introduce its own currency; the currency of the euro zone is the euro.

Should Catalonia successfully split off, the region would initially be a member of the euro zone, which would not rule out the possibility of a digital currency. In fact, according to El País, the chief developer of Ethereum, Vitalik Buterin, has been approached in order to support the Eastern Spaniards in their project. At the “Becon” in Barcelona, Buterin is said to have proposed an ICO that could be linked to the identities of the eResidency platform. This would secure the identities of the Catalans and establish a digital payment system independent of the Spanish central bank.

In the course of this rapid development, the effects of the blockchain on our society and politics are slowly becoming clear. In Greece, Eva Maili, then a politician and now a FinTech consultant, advocated a “Plan B” for Greek monetary policy. According to the International Business Times, the conversion of all fiat currencies into digital currencies was considered in Greece at the time. Even though the plan would not have been so easy to implement, Maili explained:

“Just look at what happened in Cyprus; you’re sometimes not safe from your own government.”

Bitcoin vending machines: Robocoin 2.0 and the news spy

The Bitcoin vending machine manufacturer Robocoin sets new standards with its new Robocoin 2.0. The Bitcoin vending machine with a completely new software and a revised hardware with additional functions is ready for the international rollout. With the announcement of Robocoin 2.0, the Bitcoin vending machine manufacturer has taken a big step towards its goal of making the Bitcoin more user-friendly for the masses, for people without a bank account to be able to offer a financial service.

Bitcoin “Banking” with the news spy

By repositioning itself as a “bank” with various “branches” rather than as a Bitcoin machine, Robocoin offers a range of online services to the news spy, brokers and normal customers. Robocoin is now represented in 13 countries. The company also offers a wallet service in addition to the Bitcoin vending machines or “branches”. The wallet can therefore be seen as a kind of Robocoin account and makes the news spy transactions at Bitcoin machines via QR code superfluous.

With increasing public confidence, the company assures that the Bitcoins in the Robocoin Wallet are safely stored. This is not least due to the fact that the wallets are stored with the latest Multi Sig technology and in an offline memory.

Another point is the long wait at the Bitcoin machine until the transaction has been confirmed by the blockchain. Robocoin has solved this problem with a feature that separates the transactions from the blockchain. This allows users to deposit and withdraw Bitcoins in real time.

International Payments

The Bitcoin dispenser can accept and issue 12 different currencies. Money can also be sent to people who just give an e-mail or a phone number. Even to people without a Robocoin account. The recipients only have to go to the nearest “branch” and withdraw the amount. If you look at Money Gram or Western Union with the immense transaction fees (500 billion USD turnover per year), the Bitcoin variant can be very interesting especially for workers who want to send money to their families.

“Our goal is to send money faster, friendlier, cheaper and easier than any other company in the world,” said Jordan Kelly, CEO of Robocoin. He also added:

“Robocoin is expanding the Bitcoin market by making it easier. No one needs to download digital wallets, store a private key or remember a public address anymore. The new technology promises secure storage, fast withdrawals and the easiest way to send money internationally.”

The Hardware
With the announcement of the new Robocoin Bitcoin machine, Robocoin has also announced the reduced price for the standard version. At the same time two new Bitcoin machines with special features concerning speed and safety were introduced.

With the introduction of the new Robocoin 2.0 Bitcoin machine, the company has reduced the price of the old standard version from 20,000 USD to 15,000 USD. At the same time, the company insures the highest security standards of the “old” version.

How to protect your cryptos from hacking

The boom of crypto currencies has attracted not only many hungry investors, but also hackers. Some common attack vectors are now known, such as sim hijacking and clipboard hacking. Who knows how, can protect their money relatively easily against a cyber attack.

Sim hijacking bypasses the 2FA

The weak point in so-called Sim Hijacking or Sim Swapping is not the users, but mostly the mobile network operators. The attack could hit anyone who uses their phone number for a so-called 2-factor authentication (short: 2FA).

With the 2FA, the login requires two independent confirmations that it is actually the real user. On the one hand this is the usual login password, on the other hand it is a unique code which is displayed by e-mail, SMS or in an application. After logging in with the user name and password, you then have to enter the unique code.

If a telephone number is specified as the second factor, attackers can proceed as follows: They call the relevant mobile operator and ask it to rewrite the phone number on a new SIM card controlled by the hacker. In most cases, mobile operator customer service rejects such requests, but attackers can repeat the process until they get a service representative on the line to grant them the request. Once this hurdle has been cleared, the codes are now sent by SMS to a new SIM card. This bypasses the second factor and the hacker can dial into the foreign account.

You can only protect yourself against this attack to a limited extent, for example by being very careful about giving out your mobile phone number and not bragging about your own wealth. In principle, however, a 2FA via SMS is not advisable, and you should rather use an authenticator program such as Google Authenticator. This program often generates a new code per minute to authenticate yourself. A 2FA with an external application is the safest way to protect yourself against hackers.

Clipboard Hacking changes the receiving address

A further attack vector is changing the clipboard when a user copies receiving addresses of a crypto currency. The hacker replaces the copied address with an address of his choice and can thus, if necessary, direct the transaction to himself.

You can only protect yourself against such attacks with special care. It is therefore necessary to thoroughly check the receiving address before a transaction. Hardware wallets such as the Trezor and Ledger offer a further form of 2FA in that the receiving address is also shown on the display of the hardware wallet itself.

Do not be phished
Again and again, websites appear on the Internet that are identical with large crypto exchanges and wallet providers. MyEtherWallet and Trezor were already victims of such attacks in 2018. If the user does not pay attention to the authenticity of the website and enters his login data, he may serve the hackers his information – and the money associated with it – on a silver tray.

You can tell whether you are actually on the stock exchange’s website or not by the “https://” on the left side of the URL. The SSL certificate should be valid under all circumstances. Only then it is the right page. For the future you should save these pages as bookmarks.

Conclusion: Be careful!
Crypto currencies are a new form of money and have real value. Clearly that attracts the sharks. According to the motto “Be Your Own Bank” everyone is responsible for his own security. Most attacks can be prevented with caution and attentiveness. The security precautions should increase proportionally to the value to be secured.

For larger holdings it is always necessary not to keep them on a stock exchange, but to use a separate hardware wallet. The seed phrase for this hardware wallet should also be protected.