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The State of Crypto Interoperability. (Explained in Pictures).

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Introduction

There’s been a lot of talk about blockchain interoperability recently with the launch of Cosmos and the potential threat to the Ethereum ecosystem. This piece is going to be a deep dive on the technicalities of Cosmos and Polkadot, but will also give you the prerequisite knowledge you need to understand these protocols at a technical level (with pictures to help understand).

Firstly, it’s important to know why interoperability matters. In the existing internet, we can access and modify numerous data sets through APIs (application specific interfaces). However with blockchains, data is siloed by the chain that it exists on. So what does it mean to have interoperability?

  1. Trustlessly transfer assets between different chains
  2. Cross-chain smart contracts that can interact with each other
  3. Specialised chains that can be used by other blockchains

Before we get into the details of any particular interoperability approach, I’d like to spend some time outlining some of the basics of distributed systems in order to help us understand concepts later on. Keep in mind that blockchains are simply a set of machines all over the world coming to an agreement about what a collection of data should look like.

Distributed Systems

Distributed systems are, as the name implies, a group of computers working together to accomplish a very specific goal. An example of this goal might be to serve the same content around the world to lots of people (like keeping your Twitter newsfeed up to date). In trying to achieve this goal they have to overcome the following problems:

  1. Timing. Each computer/system will execute the same task at it’s own pace and time.
  2. Ordering. Trying to solve what happened and when with time is still very hard since clocks start “drifting” after a period of time. This makes order a complicated challenge since each system has its own account of what happened and when.
  3. Failure. Coordination between systems can fail due to a system crashing, not receiving/sending messages to other systems correctly or choosing to act maliciously (Byzantine)

Like humans, the way to solve most problems is through good communication. With computers though, this is a bit more complicated since they can communicate asynchronously or synchronously.

What does that mean?

  • Synchronous = each system has a certain amount of time allocated to them to communicate and they take turns. Think of it in-real conversations for humans.
  • Asynchronous = each system can communicate whenever they want and there’s no assumptions about when they’ll speak. Think of it as Slack for humans.

All said and done, at the end of the day a blockchain should have safety (agreement on the same output) and liveliness (chain keeps growing and functioning). If your chain has safety but not liveliness it’ll stop producing blocks. If it has liveliness but no safety it’ll produce many forks and you won’t know which one is the correct blockchain unless you have a rule (eg longest chain in Bitcoin)!

Introducing Practical Byzantine Fault Tolerance (PBFT)

Practical Byzantine Fault Tolerance is an implementation developed by Barbara Liskov and Miguel Castro and introduced in 1999. Proof of Stake chains like Cosmos and Polkadot have elements in their design inspired from PBFT so it’s worth outlining what it is and how it works.

  1. A party will listen to numerous transactions until it can form a block of these transactions. We’ll refer to this party as a proposer, since they propose a block.
  2. Once a block has been proposed, everyone participates in a pre-vote to confirm that they heard the same block. It’s important to note that a block could be incorrect/malicious but still be valid in the pre-vote stage since everyone’s simply trying to come to consensus that they received the same data/block.
  3. Once more than ⅔ of the participants agree that they received the same block, they move to the pre-commit step. A pre-commit vote is then cast to determine whether this is a valid block and nothing malicious is going on.
  4. If more than ⅔ of the participants vote that the block is indeed valid and correct then we can successfully commit this block to the blockchain.
  5. The height of the blockchain is increased and steps 1–5 are repeated.

From what we’ve learned above, we can see that the following steps ensures that the order of blocks is known (by the height of the blockchain increasing once a commit happens), each computer can take it’s time to come to its own conclusion then communicate what result it came to (timing) and can handle failure (malicious node proposing a block or a node not being able to vote).

Hello Cosmos!

Enter Cosmos, founded in 2016 by Jae Kwon and Ethan Buchman and raised over $17M+ in their ICO for ATOMs. The Cosmos Hub is it’s own blockchain that connects to other zones (blockchains) and therefore allows communication between different zones. Any proof-of-work blockchain such as Bitcoin, Ethereum, ZCash or an application specific blockchain would have to be connected to a bridge-zone via the Inter Blockchain Communication framework.

Getting into the architectural details, Cosmos Hub uses Tendermint as it’s consensus algorithm (inspired by PBFT) created by Jae Kwon in 2014. What this means is that each voting stage (pre-vote & pre-commit) has a fixed amount of time for everyone to vote before it moves on to the next stage. After a block has been finalised, there’s no going back. This means you can have instant mobile & internet-of-things payments since as soon as the transaction is in a block it’s finalised. Since no confirmations are required this is called having “fast finality”.

ATOMs held by users can be used to become validators in the system or to delegate ATOMs to a validator instead. The Cosmos blockchain will have 100 validators to begin with and plan to increase the limit via a governance parameter in the future. Only those with reasonable power in the network will be able to participate in the security of the network.

To make all of this less theoretical, I’ll outline a set of steps to possibly to convert ETH to BTC. — everyone’s favourite example.

  1. A trusted intermediary zone will be created for Ethereum and there will be set of validators who will be responsible for relaying messages from the Ethereum bridge-zone to the Cosmos Hub.
  2. Since both Ethereum and Bitcoin are probabilistic (there is a chance the current chain isn’t the correct one), the validators need to wait for a certain number of confirmations to ensure the transaction actually went through.
  3. Once the validators are certain the transaction is final they’ll initiate a transaction from their zone to the Cosmos Hub that they did indeed receive the Ether. The hub will then create a form of Wrapped Cosmos Ether that it’ll hold. Every other Cosmos zone will now be aware there’s new Wrapped Cosmos Ether in the system.
  4. Assuming an exchange rate was determined beforehand, the Wrapped Cosmos Ether will be exchanged for Wrapped Cosmos Bitcoin. This Wrapped Cosmos Bitcoin is then sent to the trusted intermediary Bitcoin zone and sent to the specified address on the actual Bitcoin chain.

There’s a few assumptions/things to be aware of with this model:

  • The Cosmos Hub needs to ensure the balances of the Wrapped Cosmos assets are correctly incremented and decremented. While this is a potential downside, the Cosmos team has designed the system in a way that anyone can create their own hub. Essentially Cosmos will be a network of Hubs and Zones run by different groups.
  • Each Zone has to be trusted that they’re relaying the correct messages about assets being sent/received. Senders also need to trust the validators set will correctly relay their messages and not steal their assets.

Entering Polkadot

Polkadot is founded by Gavin Wood, a cofounder and former CTO of Ethereum and president of the Web3 Foundation. Polkadot raised over 145M+ late 2017 selling the native currency DOT during a crowdsale. If Cosmos resembles an open network of hubs and zones, Polkadot is a single “relay chain” which offers numerous benefits to chains, called “parachains” (short for parallelizable chains), that join it.

A couple key aspects Polkadot aims to innovate are:

  • Each parachain gain pooled security from the validator set of the relay chain. Once a chain has connected to the Polkadot network by becoming a parachain it is secured with the same level of security as the whole Polkadot network. In Cosmos, each new chain needs its own validator set and has to bootstrap its own security.
  • Parachains can interact with other parachains using trust-fee interchain communication. Users who want to communicate across chains do not need to trust every chain they transmit messages to, but just the singular security of the whole Polkadot network. Again, this is different from how Cosmos works where a user would need to trust the source chain, the routing chains, and the destination chain with each of their separate validator sets.

Polkadot’s consensus mechanism consists of two components: GRANDPA and BABE. GRANDPA is a finality gadget which draws on some ideas behind the GHOST fork choice rule (like Ethereum’s Casper) and BABE is a block production mechanism similar to Cardano’s Ouroboros. The introduction of a finality gadget allows for portions of the chain to be “finalized” and provably never be reverted. Separating the finality gadget from the block production allows for the slower finality gadget to work in a different process from the generation of new blocks in the chain. This means that the actual production of blocks can scale unlike in the PBFT-bound Cosmos Tendermint algorithm.

In the Polkadot ecosystem, you have the following parties:

  • Collators — Produce the blocks for parachains and pass the information to the validators to verify.
  • Nominator — Allocates their capital to validators to participate in the staking mechanism.
  • Validator — Require a high bond requirement because they are responsible for actually sealing the new blocks of the relay chain. Their crucial roles include:
  • Authoring new blocks.
  • Finalizing the relay chain through participation in GRANDPA.
  • Validating parachain blocks by ensuring the transactions which occurred are correct and that the cross-chain messages have been processed.
  • Fishermen — Bounty hunters who “go fishing” for malicious actors by watching the other nodes of the network.

A good way to think about Polkadot is as an interconnected system that will connect to other chains it will want to communicate with through bridges. All parachains and the relay chain operate as one, unified system. A parachain can incorporate custom logic and will be responsible for handling its own state transitions while receiving and posting messages to other chains. Parachains will be able to communicate with other parachains by listening to each other, unlike Cosmos where everything must be routed through the Hub.

Polkadot’s architecture is elegant for the core design assumptions it had made. This starts off with the fact that parachain passively read information from bridge-contracts, rather than relying on bridge-contracts sending messages to other parachains. Each parachain is treated no different to any other parachain. This means Polkadot’s interchain communication framework is truly trustless, since parachains are acting in the interest of the relay chain rather than any specific parachain they’re validating. Furthermore, validators are re-assigned to another parachain at intervals and at random.

Let’s take an example that might be more relatable, how would it work if you wanted to convert currencies from one parachain to another? Let’s take the popular example of converting ETH to BTC.

Collators for the Ethereum parachain would pass block headers to validators in their parachain. The validators would then sign and publish the relevant transactions in the Ethereum bridge smart contract in a format that can be recognised and communicated with the parachain zone. Any ETH sent would be held by a Polkadot validator set, which would also provide DOTs as collateral for invalid transactions. The Ethereum parachain would in turn communicate with the Bitcoin parachain, which would release BTC to the specified address through the validator set governing that particular parachain. Design decisions are still being finalised, but the idea around their cross chain communication is that it’ll be trustless.

One thing to be aware of is that Polkadot’s parachain mechanism will allocate parachain slots via permissionless on-chain auctions. These auctions would involve locking up DOTs for some amount of time to keep the parachain connected to the Polkadot network. Governance will be able to step in and fix the situation in the case of urgent situations where the parachains contains a critical bug or serves some malicious purpose. Polkadot will be governed by an on-chain governance mechanism as it believes it’s the best way to govern crypto-networks.

As Gavin Wood stated for this article, “I believe any blockchains that do not introduce on-chain governance, including providing a viable mechanism to issue upgrades, will ultimately poison themselves through toxic populism. I do not believe “off-chain processes”, “on-chain signalling” and “rough consensus” provide a sufficient means to allow the real stakeholders in chain’s ecosystem to effectively govern and drive a chain to long term success. I also believe that it’s essentially impossible to retrofit governance.”

Timelines

A lot of the core problems for interoperability seem to be solved at a high level, however the execution is still far behind. Cosmos launched in March 2019, but has only got the Cosmos Hub up and running. Their next steps are to finalise how the Inter-Blockchain Communication framework will work. Polkadot is set to launch end of 2019 with just the relay chain being live.

Overall, I’m extremely excited for both Cosmos and Polkadot to launch. What’ll be interesting to see is the developer adoption and the political struggles of each chain and how they play out. Application specific chains are a pipe dream at this point in time since not only is the basic infrastructure far from being completed, but developers will need to think about the resources and people they’ll need behind them to be connected and have sufficient security.

Will it even be a relevant trade-off? It’s hard to say. Maybe Ethereum’s off-chain governance is the very thing that allows it to thrive despite it’s slower roadmap execution since it allows true permissionless innovation with the guarantees of a highly secured chain.

The flip side to this argument is that all crypto networks will bootstrap their security on another chain, such as Ethereum, and then graduate to their own chain once they can guarantee the security of it through its existing community. A good example would be MakerDAO, they’d have enough resources to create their own chain and get enough political backing to be part of Polkadot’s para-chain. If for some reason it can’t get enough backing to be a part of the para-chain, it could establish a bridge zone on Cosmos and bootstrap their own security. Polkadot plans to provide bridge-slots for chains that are unable to provide pooled security but still give message passing down the line.

I think these are the kinds of nuanced questions that we as a community need to be asking rather than looking at chains as a zero-sum game. I’m personally excited for where all this leads us to and am receptive to your feedback on this piece. Reach out to me on Twitter @kermankohli.

Special thanks to Gavin Wood (Web3 Foundation), Logan Saether (Web3 Foundation), Billy Rennekamp (Cosmos), Chjango Unchained (Cosmos) for their contributions with ensuring the technical accuracy of the article.


The State of Crypto Interoperability. (Explained in Pictures). was originally published in Token Economy on Medium, where people are continuing the conversation by highlighting and responding to this story.

Source: https://tokeneconomy.co/the-state-of-crypto-interoperability-explained-in-pictures-654cfe4cc167?source=rss—-fbbd350c08fc—4

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Top 10 Blockchain-as-a-Service (BaaS) Providers

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BaaS or Blockchain-as-a-Service is a paid blockchain-based cloud service that blockchain companies provide to customers. BaaS provides customers with the ability to build, host, and use their own blockchain apps, smart contracts, and any other digital services on a distributed network.

 

It is important to clarify that the BaaS concept is derived from the concept of SaaS (Software as a service) and works similarly to it.

How does BaaS work?

According to the BaaS concept, blockchain companies install,  manage, and maintain, blockchain-based cloud platforms in addition to providing the tools necessary to build blockchain applications to customers in return for a fee.

The future of the BaaS industry

Currently, the global revenue from blockchain services is estimated at $ 2.5 billion and by 2025 this number is expected to rise to $ 19.9 billion.

 

Overall, the business value of blockchain solutions will increase to more than $ 360 billion by 2026, with estimates of this number reaching $ 3 trillion by 2030.

 

The previous figures clearly show the future of the industry as well as explain the huge and successive investments in the blockchain business in general.

Advantages of using the BaaS model

The BaaS model provides its users with many advantages, most notably high data security, efficiency, scalability, unlimited customization potential, as well as it is compatible with current cloud services.

 

In addition to the above, the adoption of the BaaS model reduces administrative burdens and provides better management and recruitment of resources.

 

Moreover, the BaaS model is easy to use and affordable, given the value it offers.

BaaS vs owning a blockchain-based cloud platform

The BaaS model is a better solution for business than having a blockchain-based cloud platform in all aspects. Owning a blockchain-based cloud platform is hugely costly due to start-up costs (infrastructure, personnel, software, licensing, hardware, consulting, and more), retirement costs (decommissioning of server racks), and operational costs (monitoring, cost per transactions, bandwidth expenses).

 

In addition to the above, owning a blockchain model means fully assuming administrative responsibilities.

 

While in the BaaS model, the cost is significantly lower because you only pay for the service you get. The service price in the BaaS model is subject to several factors, including the transaction rate, the maximum number of concurrent transactions, the payload size on transactions, and so on.

 

Also, in the BaaS model, all administrative burdens are borne by the provider.

How to choose the right BaaS provider?

There are a number of points to consider when selecting a BaaS provider. For instance, the provider’s experience and reputation, the security of the platform, the technical support as well as the ease of use and pricing.

 

In addition, it must be ensured that the platform integrates with the existing operating systems and software.

 

It should also ensure that the platform supports smart contract integration and deployment, identity access management (IAM) system, different runtimes, and frameworks.

Top 10  Blockchain-as-a-Service (BaaS) Providers

 

  1. Blockwell

Blockwell is one of the world’s leading providers of blockchain solutions to governments, enterprises, and end-consumers. Founded in 2018 by experts who have contributed for 20 years in developing emerging technologies for some of the largest companies in the world.

 

Blockwell aims to assist organizations in adopting blockchain solutions by providing consulting and a cloud blockchain platform in addition to a distinct and diverse set of tools and programs.

 

Blockwell aims to help everyone generate profits by allowing them to build and expand blockchain tools, services, and products.

 

Currently, content creators rely on existing toolkits developed by Blockwell, set their own commission structures, and earn percentages as they sell and promote their tools around the world.

 

During the past two years, Blockwell has developed blockchain solutions for cryptocurrency businesses around the world.

 

In addition, Blockwell has vetted dozens of token contracts for some of the most popular exchanges in the world, prevented and stopped hacks saving individuals millions of dollars, built successful token-swaps tools, and analytics tools.

 

Blockwell’s previous work includes the names of many well-known businesses such as JPMorgan Chase Bank, Wells Fargo, Disney, GoPro, Paramount, Mattel, Universal, Lucas Arts, Suzuki, Epson, Time Warner Cable, Guitar Center, Beachbody, Marriott, Jaiyen Eco-Resort and more.

 

Blockwell has an impressive list of tools and applications. Notable among them are Blockwell Wallet, Pride Token, Fire Tokens, EgoCoins, iBlockwell, Blockwell Book, Sheets-n-Blocks – Blockchain, Contract Tool, VoteBlock, API Miner, Smart License Creator, Blockwell Prime, Listener, Token Swapper, Blockwell Daico, Blockwell Telescope, Blockwell Spyglass, Blockwell Velvet, Blockwell KYC Form Builder, Non-Fungible Token Creator, BW, and Dumbapps.

 

In addition to apps and tools, Blockwell has launched a store for  DApps named “Well Spring” that has 16 working apps so far.

 

Blockwell backed tokens are valued at over $ 80M.

 

Regarding the future, Blockwell is seeking to expand by investing $ 10M. The company plans to obtain it by selling 100MM tokens to investors.

 

  1. Amazon

Amazon introduced its BAAS service called “Amazon Managed Blockchain” in 2018 through its cloud arm, Amazon Web Services (AWS). Amazon Managed Blockchain is a managed service that makes it easy to create and manage scalable blockchain networks using open source frameworks including Ethereum and Hyperledger Fabric.

 

Moreover, Amazon allows customers who want to manage their own network to go ahead, but it is an option that needs experience in dealing with AWS Blockchain Templates.

 

Amazon also enables companies to integrate their blockchain-based networks and business processes to improve IT infrastructure, business processes, human resources, financial transactions, and supply chains.

 

In addition to the above, Amazon provides AWS Key Management Service to secure Hyperledger Fabric’s CA (Certificate Authority) and Amazon QLDB technology to manage augmented ordering service.

 

The BAAS offer from Amazon is characterized by flexibility in identifying resources to suit companies’ needs.

 

Amazon customers’ list includes star names like Nestlé, BMW, Accenture, Sony Music Japan, and the Singapore Exchange.

 

  1. IBM

IBM is one of the world’s most important BaaS service providers. Forbes selected it among the top 50 blockchain companies, thanks to its blockchain platform “IBM Blockchain“, which it launched in 2017.

 

IBM Blockchain is a fully-integrated distributed ledger technology platform that enables businesses to “’develop, govern, and operate a blockchain ecosystem quickly and cost-effectively on a flexible, cloud-based platform by using Kubernetes.

 

Partnerships have been vital to IBM’s continuous BaaS expansion. it created the Trust Your Supplier platform alongside blockchain firm Chainyard and also pioneered the Contingent Labor platform in conjunction with IT People.

 

As well as IBM Blockchain has joined The Linux Foundation’s Hyperledger Project to evolve and improve upon earlier forms of blockchain. Instead of having a blockchain that is reliant on the exchange of cryptocurrencies with anonymous users on a public network (e.g. Bitcoin), a blockchain for business provides a licensed network, with known identities, without the need for cryptocurrencies.

 

IBM Blockchain Platform has been used widely in industries such as food supply, media, advertising, and trade finance.

 

  1. Microsoft

Microsoft is one of the oldest BaaS service providers as it has been in the market since 2015 when it launched Azure Blockchain Service.

 

Microsoft aims through its BaaS service to enable users to build public, private, and consortium blockchain environments with industry-grade frameworks and bring their blockchain apps to market.

 

Microsoft provides three products to customers: Azure Blockchain Service, Azure Blockchain Workbench, and Azure Blockchain Development Kit.

 

Azure is compatible with other Microsoft products such as Logic Apps and Flow, making it a great choice for organizations looking to harness blockchain such as General Electric and T-Mobile.

 

Microsoft Azure’s most prominent features are the support of several Blockchain frameworks, including Quorum, Corda, Hyperledger Fabric, and Ethereum. Plus, ease of deployment using Azure CLI, Azure Portal, or Visual Studio Code with the Azure Blockchain extension. Azure also supports full monitoring and logging.

 

The above helped Microsoft to forge important partnerships with prominent entities such as its partnerships with Ripple and BitPay.

 

  1. Alibaba

Alibaba is one of the leading blockchain solutions providers around the world. The well-known Chinese company introduced its BaaS service in 2018 through its cloud platform.

 

Alibaba has an active research team and has registered many patents on blockchain during the past period.

 

Utilizing Quorum, Hyperledger Fabric, and the Ant Blockchain, the platform integrates Alibaba Cloud’s Internet of Things (IoT) and anti-counterfeiting technologies to create blockchain solutions for product traceability.

 

Alibaba’s BaaS offering provides diverse solutions to meet user needs including encompasses enterprise-level BaaS services, an agile BaaS platform that supports private deployment, and specific blockchain solutions for container services.

 

  1. Oracle

Software giant Oracle unveiled its BaaS service in 2017. The service, called “Oracle Blockchain Cloud Service”, aims to provide an enterprise-grade distributed ledger platform that can help businesses to “increase trust and provide agility in transactions across their business networks.”

 

Oracle enables its service users to provide permissioned blockchain networks for private or consortia models, enroll member organizations, and run smart contracts to update and query the ledger in addition to many other benefits.

 

Also, Oracle enables its service users to use its other solutions such as Oracle Supply Chain Management (SCM) Cloud, Oracle Enterprise Resource Planning (ERP) Cloud, and other Oracle cloud solutions.

 

  1. R3

R3 launched its BaaS service called “Corda” to enable companies to transact directly and privately using smart contracts.

 

Corda is an open-source blockchain platform that works on minimizes blockchain nodes’ deployment time by a few minutes, allowing enterprises to host the Corda network in a few clicks.

 

Interoperability, security, and privacy are the foundations of the finance-focused Corda.

 

Royal Dutch Airlines (KLM) recently hired Corda service to streamline financial processes and enhance settlements

 

Corda provides users with the following benefits: Easy cloud-based deployment and quick setup of nodes with Docker, a Built-in blockchain application firewall to provide additional security, as well as R3’s Interoperability feature that allows developers to work with more than one application at the same time.

 

It is worth noting that R3 has developed solutions for more than 300 clients in addition that it has partnerships with many prestigious institutions such as Barclays, Credit Suisse, Goldman Sachs, J.P. Morgan, and Royal Bank of Scotland, Bank of America and Wells Fargo, and more.

 

  1. SAP

SAP launched its BaaS service “Leonardo” in 2017. Through its service, SAP aims to help companies transition into the digital age through the use of distributed ledger technology.

 

Leonardo is a Hyperledger based service and resides in the SAP Cloud service, meaning it can be accessed from any device.

 

The platform provides plug-and-play blockchain solutions and allows for the easy setup and hosting of blockchain nodes.

 

SAP Leonardo functions as a blockchain cloud service, machine learning service, and supports the Internet of Things (IoT) in a single ecosystem.

 

SAP Leonardo provides its users with several benefits such as cloud deployment, monitoring of blockchain data in real-time, and more.

 

  1. Huawei

Well-known Chinese smartphone manufacturer Huawei launched its BaaS service in 2018. The service, called “BCS“, is based on Linux Foundation’s Hyperledger Fabric, a blockchain framework that allows components, such as consensus and membership services, to be plug-and-play.

 

With its BaaS service, Huawei aims to enable companies to develop smart contracts on top of a blockchain network for several use-case scenarios.

 

Huawei also works with enterprise customers to promote the deployment of blockchain solutions and applications and to build reliable, public infrastructure, and an ecosystem-based on blockchain and shared success.

 

According to Huawei, BCS enables enterprises to deploy blockchain technology within five minutes. It concentrates on nine application scenarios, including data assets, Internet of Things (IoT), operation, identity verification, data certification, data transactions, new energy, philanthropic donations, and inclusive finance.

 

Huawei has many and varied partnerships inside and outside the Chinese market, but the most prominent name remains the famous car manufacturer Honda.

 

  1. Factom

Factom launched its BaaS service in 2017. The service, called “Factom Harmony“, aims to allow enterprises and software vendors to quickly add blockchain capabilities to any application or workflow using simple API calls.

 

Harmony also aims to enable users to create portable, archivable cryptographic proofs to use as trusted inputs for internal and external audits.

 

What sets Factom Harmony apart is that it reduces the time and resource requirements to perform audits and meet compliance objectives.

Author: Husayn Hashim

Bio: Husayn Hashim works as an author and programmer. He has been writing about blockchain technology and cryptocurrencies for si years. He’s interested in programming, technology, finance, and business. He loves writing and loves to share his knowledge with others.

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These Are Ripple’s Relocation Options if it Moves Out of the United States

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Ripple has expressed dissatisfaction over the regulatory uncertainty surrounding cryptocurrencies in the United States. Apart from this, the San Francisco-based firm has also decided to act. By moving out of its home turf. But where will Ripple move next? Here are the relocation options.

Ripple’s Asia Options: Japan, Singapore & the United Arab Emirates

When Ripple’s co-founder and Executive Chairman Chris Larsen threatened to move out of the United States over the federal government’s anachronistic attitude towards cryptocurrency regulation, the message was clear.

During a virtual interview with Fortune at the LA Blockchain Summit, Larsen dropped the ‘relocation bomb.’ The Ripple co-founder also added that the US is far behind in the cryptocurrency regulation game compared to its counterparts. To the point that it actually risks losing its financial innovation edge to China (in particular).

Continuing his commentary, Larsen said that the U.K. and Singapore are the most probable destinations for the company to relocate if it moves base out of the country.

However, yesterday, in an interview with Bloomberg, Ripple CEO Brad Garlinghouse added Japan and the United Arab Emirates too to the list of Asia options. Elucidating the reason for extending the list, he said:

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The common denominator between all of them is that their governments have created a clarity about how they would regulate different digital assets, different cryptocurrencies.

He reiterated Chirs Larsen’s stance about the United States’ uncertain regulatory roadmap. He also referred specifically to the conundrum of categorizing cryptocurrencies into a commodity, a currency, a property, or security.

Moving out of the US is more of a compulsion than a desire, Mr. Garlinghouse explained. Ripple would have continued to operate from their home turf if the cryptocurrency regulation scenario was not colloidal.

Ripple is definitely a proud US company and we’d like to stay in the US if that was possible, but we also need regulatory clarity in order for us to invest and grow the business.

Love For London And The United Kingdom

Apart from Asia, Ripple is also strongly considering the UK as an option. This became clear when in an interview with CNBC, the CEO applauded the clarity regarding XRP’s regulatory status in the country.

“What you see in the U.K. is a clear taxonomy, and the U.K.’s FCA took a leadership role in characterizing how we should think about these different assets and their use cases,” Garlinghouse said.

The outcome of that was clarity that XRP is not a security and is used as a currency. With that clarity, it would be advantageous for Ripple to operate in the U.K.”

This is clearly where the US is failing, Mr. Garlinghouse remarked. Although the U.S. Securities and Exchange Commission is clear on Bitcoin and Ethereum not being securities, when it comes to XRP, the authority has mostly stayed mum, which in turn has left the cryptocurrency’s status ‘shrouded in uncertainty.’

The clarification regarding XRP’s ‘security status’ is crucial for Ripple. Even though the company claims total disassociation from the XRP ledger and the token, it still owns 55 billion of the total 100 billion XRP supply.

Apart from the United Kingdom and the aforementioned countries in the Asian continent, Ripple has also shown interest in Switzerland for setting up its headquarters.

Ripple (XRP) price climbed up higher but not necessarily in response to Ripple’s decision to leave the US. The rally can be mostly attributed to bitcoin rushing for the stars with its explosive break past the $13,000 mark.

Will the cryptocurrency-based fintech firm be able to operate with total and unequivocal regulatory clarity in the above countries? It still remains to be seen.

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Source: https://cryptopotato.com/these-are-ripples-relocation-options-if-it-moves-out-of-the-united-states/

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ETH Cools Off After 13% Weekly Gains, What’s Next? (Ethereum Price Analysis)

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ETH/USD – Bulls Retest Bearish .618 Fib Resistance

Key Support Levels: $410, $400, $387.
Key Resistance Levels: $416, $421, $439.

Ethereum saw a strong 13% price surge this past week as it reached as high as $421 (1.414 Fib Extension). More specifically, the buyers could not close a daily candle above the resistance at the bearish .618 Fib Retracement at $416.

After heading back into $400 yesterday, the bulls have rebounded and are now retesting the aforementioned level.

ethusd-oct24
ETH/USD Daily Chart. Source: TradingView

ETH-USD Short Term Price Prediction

Looking ahead, once the buyers break $416, the first level of resistance lies at $421.50 (1.414 Fib Extension). This is followed by resistance at $434, $439 (August 2018 Highs), and $445 (bearish .786 Fib). $450, added resistance lies at $462 and $475.

On the other side, the first level of support lies at $410. Beneath this, support is found at $400, $387 (.382 Fib), and $377 (.5 Fib).

The RSI is approaching overbought conditions but still has room to push higher before becoming truly overbought.

ETH/BTC – Bulls Testing 100-days EMA Resistance

Key Support Levels: 0.0311 BTC, 0.0305 BTC, 0.03 BTC.
Key Resistance Levels: 0.0327 BTC, 0.0337 BTC, 0.0341 BTC.

Against Bitcoin, Ethereum struggled this week as it dropped as low as 0.0305 BTC. It has since bounced higher to climb back above 0.031 BTC to trade at the current 0.0318 BTC level. It is now testing resistance at a 100-days EMA and must overcome this to head back toward the October highs at 0.0337 BTC.

ethbtc-oct24
ETH/BTC Daily Chart. Source: TradingView

ETH-BTC Short Term Price Prediction

Looking ahead, if the bulls can break the 100-days EMA, the first level of resistance lies at 0.0327 BTC (bearish .236 Fib Retracement). This is followed by resistance at 0.0337 BTC (March 2019 Support – now resistance), 0.0341 BTC (bearish .382 Fib), and 0.035 BTC.

On the other side, the first level of support lies at 0.0311 BTC (.618 Fib). Beneath this, support lies at 0.0305 BTC, 0.03 BTC, and 0.0295 BTC (200-days EMA).

The Stochastic RSI recently rebounded, which put an end to the downward pressure. For a bullish recovery above the 100-days EMA, the RSI must pass the mid-line to indicate bullish momentum within the market.

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Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/eth-cools-off-after-13-weekly-gains-whats-next-ethereum-price-analysis/

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