But you aren’t out of luck with security options. Other crypto enthusiasts understood the potential security gap early on and developed hardware wallets.

These days, it’s not about when the tech will arrive – but which one to choose. TREZOR and Ledger are leading brands in this arena. But which hardware wallet is best for you?

Crypto Hardware Wallets

Crypto owners have an immense selection when it comes to choosing a wallet. Not only are there web-based options, but there are also desktop, mobile, hardware, and even paper wallets.

The one type of wallet that concerns us in this post is the hardware wallet. Both TREZOR and Ledger fit into this category.

Think of the hardware wallet as a safe. Unlike its software companions, the hardware wallet stores your private keys on a USB drive. In other words, your private key is stored offline. Score one for security!

The only time your money is online is when you have the device plugged in, and you are making a transaction. And even then, these devices contain numerous security protocols to help keep your funds safe.

TREZOR vs Ledger

So what about these two wallets anyway? We’re getting there. To better evaluate TREZOR vs Ledger, we need to look at a few factors: What coins they support, how easy they are to use, compatibilities, extra features, and what users say.

To get a glimpse of everything these brands offer, we’ll be looking at their premium products – TREZOR’s Model T and Ledger’s Nano S.

Let’s start with the basics.

Supported Cryptocurrencies on TREZOR and Ledger Nano S

Your first concern should be whether the hardware wallet supports your chosen coins or tokens. This is probably the biggest difference between TREZOR vs Ledger.

Both support some of the most popular crypto assets–Bitcoin, Ethereum, Litecoin, Dash, and ERC-20 tokens. But TREZOR clearly takes the lead here with support for 689 coins and tokens, compared to Ledger’s 41 (at the time of writing). However, there are a few coins you cannot find on TREZOR: Ripple, Stellar, and Monero are the most popular of those missing.

Features

As you can imagine, security is paramount when it comes to hardware wallets. Each device comes with its list of coin-safeguarding features.

Let’s take TREZOR’s Model T. This wallet is a full-color touchscreen device. It includes three primary features for recovery: A PIN entry, a passphrase entry, and a device recovery. In addition, it provides U2F authentication (2 2-factor authentication), GPG encryption, SSH encryption, a password manager, and support.

The Ledger Nano S has its own set of safety protocols and features. Unlike TREZOR’s Model T, the Nano S isn’t a touchscreen device. Instead, you use buttons to commit to commands. To safeguard your crypto, this device ups the game with a secure PIN-protected chip for your private keys and the use of BOLOs – individual shields around each app on your device. According to the site, this makes the Nano S tamper-proof and incredibly secure.

Both devices are compatible with software wallets, such as MyEtherWallet and MyCrypto–depending on the coin or token. While Ledger lists significantly fewer coins and tokens, and appears to connect to fewer wallets than TREZOR, its Google Chrome companion app provides more features that may be useful.

The Public Speaks

When in doubt, it helps to check what others are saying. However, public sentiment is positive overall for both platforms and devices.

While the Ledger’s Nano S appears slightly low-tech and only allows for 2-4 coins at a time, it makes up for these issues in ease of use and installation. The TREZOR Model T primarily suffers from a higher price point of $170 compared to Ledger’s $120 and may be more time-consuming to set up.

If you’re interested in social proof, TREZOR has been featured in major publications, including Forbes, Coindesk, and CNN.

TREZOR vs Ledger – Who Takes the Cake?

It would be satisfying to have one single winner here – but that’s not possible. Both platforms are secure, compatible with hundreds of coins and tokens, and provide excellent customer support.

Ultimately, the question isn’t which hardware wallet is better – it’s what’s best for you. Double-check if your coins are compatible with either device – then choose based off price point or desired features. While Ledger’s “tamper-proof” device seems appealing, don’t forget the layers of encryption and protocols wrapped up with the TREZOR models.

If you’d like to dive deeper on either wallet, check out our TREZOR review guide and Ledger Nano S review guide.

The post TREZOR vs Ledger – Which Hardware Wallet Is Right for You? appeared first on CoinCentral.

Sound paranoid? It’s more common than you think. At least 47% of all civil cases are contract-related, according to a study on 26 US states.

Blockchain, thankfully, has not just revolutionized our financial transactions. It’s made a breakthrough in law as well.

So How Do Smart Contracts Work?

A smart contract isn’t unlike its paper predecessor. It helps you exchange property, services, and currency. But unlike that hardly-enforceable paper stack just barely stapled together, this contract is a self-executing document.

In actuality, smart contracts aren’t exactly “new.” The term was invented by Nick Szabo in 1994. A scholar of both law and computer science, the reclusive Szabo has been involved in cryptocurrency since day one (check out his Bit Gold contribution). With smart contracts, he desired to remove the middleman, who traditionally played the role of the contract enforcer. Instead, he envisioned smart contracts to be like a vending machine.

Think about the procedure of a vending machine – it’s the simplest transaction you can make. You decide what you want and insert money into the machine. Once you click on the button or insert the code for the item of the same value, the machine automatically releases it. Smart contracts essentially work in the same way. These contracts automatically enforce themselves once certain conditions are met.

This way, the only individuals concerned would be those directly involved in the contract. There is no need for a lawyer, a notary, or any other go-between.

Smart contracts are encoded into blockchains, so they’re also decentralized. This aspect is what simplifies the process and throws out the middleman. Because the enforcer is now the code, you don’t need a lawyer to ensure the contract is executed correctly. Some people even add on a multi-signature (multi-sig, for short) component, which asks each party to sign before transferring funds or work. Even with the multi-sig component, you can ax the waiting time as the contract goes back and forth between all the parties involved. So not only do you save the headache and risk of being scammed by the third party, but the process becomes quicker.

After the contract is written and signed by both parties, it’s monitored by computers on the blockchain system. In most cases, the contract itself is public, and the parties involved are pseudo-anonymous (more on that later). In addition, there are certain triggers in the code. For example, when a service provider delivers the final product, the employer should pay in cryptocurrency. When the first condition is triggered, the funds are released automatically.

Ethereum: The Pen and Paper

So what technology do you even use to make or sign a smart contract?

Most contracts are built using Ethereum, a blockchain-based platform. Ethereum was first proposed by Russian-Canadian programmer Vitalik Buterin in 2013 and released in 2015. Each contract is executed using a Turing-complete Ethereum Virtual Machine. Yeah, we know that’s a mouth-full. This basically means that this program can simulate a computer. It doesn’t think per say, but it is expressive. It can “decide” things in an if/then fashion. This logic makes it perfect for smart contracts, which need to be able to function and execute commands with many variables.

This makes Ethereum fundamentally different from Bitcoin, which uses simple mechanisms to distribute money. Ethereum tends to be better suited to any transaction which requires multiple steps.

The Smart Contract: The Future of Everything?

From the outset, we can already see four primary benefits of the smart contract:

• Independence – You don’t have to depend on intermediaries. This cuts costs, increases efficiency, and prevents fraud from a third party. Because smart contracts are decentralized, you don’t have to worry about bias from any governmental body, either.
• Trust – There’s no need to trust a person, all you have to trust is the system. And if you know anything about blockchain, you know the system generally holds true.
• Security – This ties in with trust. Think about it this way: If a thief wants to take your money, he’ll hack into your bank account. But because blockchain is decentralized – there is no one place to attack. A thief can’t just hack into your bank account. They would have to take over 51% of the network in order to control anything. Smart contracts, which are encoded into blockchain, are just as secure.
• Speed – These contracts aren’t just secure or accurate – they’re fast. And it’s not just because it removes wait times for lawyers and notaries. Since the contract is monitored by the blockchain, the results are almost instant. It’s a completely automated process.

All of these things increase the cost-efficiency of smart contracts over traditional ones. But that’s not all.

As you can imagine, smart contracts aren’t just limited to the financial sphere. You can use them in government dealings, healthcare management, higher education course management, insurance, and real estate. Any situation that requires the trade of goods for services could technically make good use of smart contracts.

And developed nations like the US and Europe aren’t the only ones who benefit. Citizens in countries like India, where getting a passport or visa could take months instead of weeks, benefit immensely. International business deals are suddenly simplified – making trade easier and more lucrative for everyone involved.

It’s likely that, in the future, any and all business will have a smart contract attached. On a global scale.

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Smart Contracts in Action

Still not sure what smart contracts look like out in the wild? Here’s a glimpse:

You start your Saturday with a fender bender. We never said this was a glamorous journey, did we? Your bumper is dented. You call your insurance company and take a photo of the damage. You weren’t the offender – but you do have their details. The insurance agent logs your information and crash data into their blockchain-based system, which triggers a clause in your contract. You receive an alert. It’s estimated your repair costs and given you a supported service provider. Head there, and the bill will be taken care of.

So you go to the car shop. A new bumper has actually just arrived at the shop, and the ownership of the piece was transferred to the shop through – you guessed it – a smart contract. Unfortunately, their shipment of air filter replacements was delayed, but not to worry. The money won’t be transferred to their supplier until the shop receives it. Smart contracts and supply chain in action.

We could go on, but we think you get the gist.

What Could Go Wrong?

“Smart contracts can’t be perfect! What if someone is penalized for a small mistake? It surely can’t be hack-proof!”

While human error is a valid critique of the system, a smart contract won’t necessarily take you to court over it. Funds may not be released, or an employer might be automatically refunded. Human errors will happen, on the blockchain or not.

Mistakes in code or human error with security (giving away your private keys) can also lead to hacking or theft. The code is so complex, that sometimes contracts become vulnerable to hackers.

For example, the ICO KICKICO lost $8 million after a smart contract breach in July. But the most notable hack occurred on the DAO (Decentralized Autonomous Organization) in June 2016, in which the hackers made off with $50 million. This led to a split, or hard fork, of Ethereum Classic (ETC) to Ethereum (ETH) in an attempt to make the platform more secure.

Those sound like pretty hefty sums – but are they really? In 2017, consumers in the US lost almost $17 billion from identity theft alone. (Of course, you can soon protect your identity with blockchain tech, too.)

It’s probable that blockchain and smart contracts – despite human weakness – are the answers to our traditional system woes. Blockchain technologies still offer more protection. It’s the difference between a regular padlock and a Schlage deadbolt…or having no lock at all.

“Fine, but aren’t there limitations? If it’s all public, there’s no way to store sensitive data.”

That’s true – but not for long.

There are at least two major projects tackling privacy and “secret contracts” – Enigma and Wanchain. A secret contract is a smart contract that allows for sensitive data to be stored securely, even as it is validated using blockchain technology. In order to preserve user privacy, Wanchain uses ring signatures and one-time address generations for their smart contract transactions. This keeps identities anonymous.

As problems pop up with smart contracts, so do solutions. Whether talking about Bitcoin or smart contracts, Szabo, Satoshi, and Buterin were all interested in upgrading an inefficient financial system. Regardless of whether the solution lies in Ethereum smart contracts, or another platform, the core blockchain technology is essential to the future of FinTech.

For the Time Being

In fact, the biggest problem with smart contracts isn’t really about smart contracts at all. The problem is many governments don’t understand them – and don’t know how to regulate them. But that’s changing. The US state of Tennessee passed a bill this year to recognize smart contracts as legally binding. Canada’s in on it, too. In early 2018, they began trials to use smart government contracts. As the benefits become more evident, it won’t be long until the rest of the world jumps on board.

But why wait for them to catch up? You can start using smart contracts today – or you can learn to code your own.

The post What Is a Smart Contract? | Explanation for Beginners appeared first on CoinCentral.

Who Is an Influencer?

Are you just looking at the follower number? Of course, an influencer’s reach is critical to them being, well, an influencer. In fact, that’s how this list is ordered. But to sift through the hundreds of voices in crypto, we also considered:

• Activity
• Engagement with followers
• Quality of posts
• Role in the industry

It’s also important to remember that there are different tiers of influencers – from micro to macro. So an influencer who has a smaller fan pool but more solid engagement and resources might be more available than one with 100k+ followers. Furthermore, not every active potential crypto influencer needs thousands of followers since they are working behind the scenes. But their public work offers insight into the present and future of the industry.

In addition, it’s worth noting that just because someone was able to amass a large following on a social media platform does not qualify them as someone you should trust with your investment decisions. Many cryptocurrency influencers have come under fire for shady practices, undisclosed advertisements, and even outright scam shilling.

That said, here’s our list of influencers and where you can find them:

20 Active Crypto Influencers on Social Media 

Twitter Crypto Influencers

John McAfee
Twitter | Facebook | Website

Love him or hate him, you can’t deny that John McAfee is one of the leading influencers in the crypto space. Known for his work in cybersecurity, he has since become a critical voice in the crypto and blockchain industry. From his choice to support Patron to his war with the IRS, his Twitter feed is bound to be informative – if not entertaining.

Vitalik Buterin
Twitter | GitHub | Website

The founder of Ethereum and co-founder of Bitcoin Magazine is an active Twitter user. In light of his accomplishments, he’s only 23 and is likely to continue contributing to the space.

Marc Andreessen
Twitter

Entrepreneur and investor Marc Andreessen is a more subtle but strong voice on Crypto Twitter. Andressen combines his practical knowledge of software and finances to blockchain and crypto. He has even set up a $300 million VC fund for crypto projects.

Roger Ver
Twitter | Youtube

Outside of ETH and broad crypto commentary, you can focus on BTC and BCH with Roger Ver’s Twitter feed. Known as “Bitcoin Jesus”, Ver was an early investor and adopter. 

Andreas M. Antonopoulos
Twitter | Youtube | Facebook | LinkedIn | Website

Committed to educating the masses, Andreas Antonopoulos is better known for his books on blockchain and cryptocurrencies. Twitter is his main stomping ground, but Antonopoulos is prolific on the net as lead host of Let’s Talk Bitcoin. His YouTube channel is just as impressive, with over 160k subscribers.

Facebook Crypto Influencers

Don Tapscott
Facebook | Twitter | Youtube | LinkedIn | Website

You may know Don Tapscott from his book Blockchain Revolution. He is the founder of the Blockchain Research Institute. Tapscott is prolific on almost all social media, not just on Facebook, although he has amassed 111k followers on this platform. He focuses on news and professional commentary.

Jen Buakaew
Facebook | Twitter | LinkedIn

Jen Buakaew, better known as Jenny from the Blockchain, is a crypto enthusiast and ICO advisor, touting 34k followers on Facebook alone. You can find her speaking and traversing blockchain conferences. She regularly discusses her experiences on the ground level, meeting with enthusiasts and industry leaders outside of the Western hemisphere. 

Tim Hartford
Facebook | Twitter | LinkedIn

Tim Hartford is an economic journalist and he applies his knowledge to blockchain. He writes wholesome syntheses of crypto news and explores where it fits in the larger scheme of things.

Nic Trades
Facebook | Twitter | Instagram| Website

Nic Trades has her grounding in forex, stocks, and commodities. She seeks to educate others on trading strategy, and that applies to crypto trading as well. She focuses on the trading aspect of crypto, including technical analysis and practical tips.

Brock Pierce
Facebook | Twitter

Co-founder of  Blockchain Capital and named by Forbes as one of the wealthiest people in crypto, Brock Pierce is an early adopter who is passionate not just about crypto and blockchain, but also ICOs.

LinkedIn Crypto Influencers

Meltem Demirors
LinkedIn | Twitter | Website

Another early adaptor to blockchain, Meltem Demirors is at the forefront of the blockchain revolution as an investor and a consultant. She has over a decade in experience and most recently sat on the World Economic Forum Blockchain Council.

Tone Vays
LinkedIn | Twitter | YouTube | Website

Tone Vays, on the other side of the aisle, is not interested in tokens or ICOs. He is selective about his crypto and blockchain ventures – as any good consultant is. Having worked on Wall Street for 10 years, he has the financial background to make pointed and insightful commentary on the market.

Mark Lynd
LinkedIn | Twitter | Instagram

Mark Lynd is an expert in AI, cybersecurity, and blockchain, and it shows on his social profile. Having worked in tech since 1996, he has over 20 years experience in the industry and can understand where blockchain can be applied. 

David Gadd
LinkedIn

David Gadd is another blockchain consultant, and his daily insights into the market are invaluable. With 15+ years in tech and a certificate from Oxford in blockchain, you can bet he knows the practical and theoretical aspects to the technology.

Yagub Rahimov
LinkedIn | Twitter

First a professional forex trader, Yagub Rahimov became an early adaptor to blockchain tech and hasn’t stopped talking about it since. His marketing and news brands focus on FinTech companies and ICOs. On social, he offers professional analysis on crypto market trends.

YouTube Crypto Influencers

Crypto Bobby
YouTube | Twitter | Facebook

Crypto Bobby is an influencer and enthusiast – with 144k subscribers. As a self-described average dude, Crypto Bobby’s channel is completely dedicated to crypto news and analysis.

Ian Balina
YouTube | Twitter | Instagram | SnapChat | Website

Ian Balina is a crypto investor and ICO advisor. His YouTube channel has video content from regulation commentary to crypto analysis and highlights on blockchain in Africa.

Patrik Wieland
YouTube | Twitter | Instagram | Website

Patrick Wieland has over 50k subscribers and has filmed videos ranging from stock market commentary to live crypto trading. 

Tim Draper
YouTube | Twitter | Facebook | LinkedIn

Founder of Dealer Associates, Tim Draper is a venture capital investor who correctly predicted in 2014 that Bitcoin would pass the 10k mark in three years. It did so at the end of 2017.

Instagram Crypto Influencers

Maria Jones
Instagram

In an industry dominated by men, Maria Jones makes it clear that women can be involved in the crypto revolution too. It’s no surprise that the Vice President of CoinTelegraph has amassed 507k on Instagram alone, where she displays the high-life crypto experience.

Armando Pantoja
Instagram | LinkedIn

Armando Pantoja is a tech entrepreneur that loves to give quotes and show off the good life to his 53k followers on Instagram. His feed isn’t just focused on crypto but business principles as well.

Joseph Steinberg
Instagram | Twitter | LinkedIn | YouTube | Website

It’s no surprise that Steinberg has amassed a following of over 24k on Instagram. He’s a well-known tech influencer and cybersecurity thought leader. You’ll find fun behind-the-scenes and conference photos on his Instagram account.

Tony Thomas III
Instagram

As the handle might suggest, Tony Thomas is passionate about ETH, but he is also a general crypto enthusiast. 

Crypto Sally
Instagram

Crypto Sally’s account is exclusive, meaning that you have to request to be a follower. She offers photos about crypto and lifestyle tips.

The Rest of the Crypto Influencers

These 20 individuals represent just a small selection of crypto influencers. Some you may love while others you can’t stand. Our hope is that you start with this list, and expand your horizons to find crypto influencers that are best suited to your personal taste. The more opinions you expose yourself to, the better off you’ll be in the wild world of crypto.

The post 20 Active Crypto Influencers to Follow on Social Media  appeared first on CoinCentral.

And it makes sense. Privacy is currency these days. Facebook ads allow you to laser target users with identifiers as specific as age and your favorite movie. After the Cambridge Analytics scandal, worry over misuse of private data is more prevalent than ever.

Despite this, it’s crypto and blockchain projects that are getting the cold shoulder from advertising agencies. There’s a reason you didn’t get search ads for the 2,284 ICOs in 2018. Last year, the online advertising giants banned crypto and blockchain ads from their platforms.

Google and Facebook stressed it was for user protection. And maybe that’s true. After all, according to one study, 80 percent of ICOs that occurred in 2017 could be considered scams. In fact, the backlash was so strong, both platforms ended up compromising with a whitelisting process.

Crypto Ban’s Effect on the Market

It’s obvious that the crypto ban has impacted the growth of the blockchain market.

This blanket ban hinders education efforts to protect crypto users, and it prevents startups from amassing the public support they need to survive. In a way, the advertising ban has become a Catch-22. Because of it, blockchain projects can’t grow like a regular business, and their failure is considered a sign that the ban is the right choice.

Think about this: The bans arrived in the middle of 2018’s bearish trend. This action may not be the sole cause of the price drop, but it has negatively affected investor confidence. It was another factor contributing to the bears.

Yet, that doesn’t mean blockchain advertising on these platforms can be thrown completely out the window.

Blockchain Ads with Google

Google eased its full ban last year for Adwords with a whitelisting program, but it’s discretionary. While there is an application that must be approved for crypto advertising, you may not need it for your blockchain project.

Keywords containing blockchain aren’t necessarily banned, but they aren’t highly searched either. For example, a cursory look at Google Trends shows that the most searched terms are still “what is blockchain” and even simply “blockchain.” By using Keyword Planner, you can squeeze a bit more information in terms of volume and cost. Although, you will need to test each keyword to really get an idea if it works for you or not.

Facebook – Is It Worth It?

Like Google, Facebook has a strict ban on crypto and blockchain products. It’s so strict, that when even mentioning “hardware” in a boosted post, could cause it to be tagged as a crypto post! But maybe strict is the wrong word. In reality, Facebook bots don’t understand context, and the human reviewers aren’t necessarily trained in tech or finance.

You can try whitelisting your project on Facebook with this form, but the process is uncertain. It could take months to receive an answer. If you get one at all. According to Facebook:

“Please note that we reserve the right to deny any application or withdraw eligibility at any time without notice. Eligibility may be subject to such conditions and restrictions as Facebook may decide. Advertising must comply fully with all applicable terms and policies, including the Facebook Advertising Policies. Facebook may review and reject ads in its sole discretion”

If your product isn’t crypto-specific, you can target crypto users and people interested in blockchain tech. To make Facebook advertising work for you, with or without the whitelisting application, you’ll have to design a creative funnel that uses other industry pain points while targeting interested parties.

Of course, given Facebook’s track record with data privacy, you may want to avoid them altogether.

Everything You Need to Know About Blockchain Advertising

Blockchain advertising is tough but not impossible. In this trusty guide, we’ll take you through what you need to know to succeed in blockchain advertising.

Main Demographics

Who should you be marketing to? The broad audience for crypto and blockchain is easy to find. Crypto users are largely millennial, male, employed, and atheists. Furthermore, more than half are hitched or American. That would appear to narrow it down, right?

Those are only the general demographics. It is crucial to view your own project’s specific audience. Unless you’re creating a new exchange or crypto-centered project, it’s likely you have a whole other group to consider – those who aren’t on the blockchain but should be.

It’s always best to come up with two to three buyer personas that you can use when creating ads. This can include a persona for investors or types of users.

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Affiliate Marketing

One model of marketing that is effective is affiliate marketing. In other words, create an offer for users to bring others to your platform. Maybe it’s a discount or a coin bonus. This technique is effectively word-of-mouth for the campaign, but it can be an extremely useful and low-cost option.

The only issue? You need a functioning product and an engaged community.

Connecting to Industry Resources

In order to create the engaging community you need for affiliate or word-of-mouth marketing, you need to have an active plan to collaborate with thought leaders and leading publications.

This can mean advertising in top crypto websites, such as CoinTelegraph or CoinCentral (wink wink, nudge nudge). It can also mean creating threads and interacting on Bitcoin Talk, curating a Telegram group, and much more.

This is essentially a more traditional PR and advertising route, using crypto-friendly sources.

Blockchain Advertisers

That said, another way to leverage your blockchain brand is to advertise with other blockchain tools. There are blockchain advertising tools like NYIAX, an advertising contract trading platform that allows advertisers to reduce costs. Another project, BitClave, only shows users ads that deal directly with their search term. This approach is more user-friendly and again reduces costs for the advertiser.

Other projects like MadHive claim to be able to both validate and secure data from fraud, which is a definite plus. AdEx, an ad network based on Ethereum, also seeks to lower fraud and ad costs while expanding reach.

Finally, the Brave browser and it’s associated Basic Attention Token (BAT) implement numerous features to keep user data private while still helping advertisers target the right customers. 

At the End of the Day

The blanket crypto ban is harming not just blockchain projects but also potential users of blockchain technology. If a startup can’t advertise, how can it grow? Or even more insidious, how can educational sites teach others about the technology and warn them of potential scams if they can’t reach the main population?

Despite all this, blockchain advertising is still possible, even on the major platforms. You just need to be a little creative.

The post The Complete Guide to Blockchain Advertising appeared first on CoinCentral.

In light of the recent bitcoin arrests, right when the DOJ is arresting fake crypto traders, it may seem like this stereotype holds up. Cybercrime continues to hinder crypto mass adoption. But despite its past role on the Silk Road or the Dark Web, Bitcoin’s future in crime hasn’t been as clear cut.

You could say the Bitcoin arrests are a blessing in disguise.

Recent Bitcoin Arrests

In October 2018, Thai police arrested Prinya Jaravijit, the prime suspect in a conspiracy that cost a Finnish investor $24 million Bitcoin. Only a month later, authorities arrested eight more in a separate Bitcoin-related scam in Japan. And earlier that same year, agents working under the DOJ posed as crypto traders to infiltrate a drug smuggling ring, arresting 35 criminals and seizing cryptocurrencies worth $20 Million.

And these bitcoin arrests are surprisingly a fantastic development for the crypto industry.

For one, these arrests prove that Bitcoin isn’t a prime vehicle for money laundering or illegal activities. It’s probably one of the worst options out there. Criminals who do use Bitcoin, believe it to be anonymous. But that couldn’t be further from the truth. While Bitcoin transactions can be difficult to track if you don’t know the time of the purchase, they aren’t entirely off the grid.

Bitcoin is a pseudonymous currency. In other words, your public key may not be showing your name and address, but each transaction on the blockchain serves as a clue. For example, when Ross Ulbricht, founder of the Silk Road, was caught by the FBI, they were able to track over 3500 transactions to Ulbricht’s laptop.

Due to Bitcoin’s lack of anonymity, its prominence in criminal activity has dropped over the years.

Which Crypto Is Popular On The Dark Web?

A poll of dark web users suggests otherwise. Recorded Futures discovered that Monero, Dash, Ether, and Litecoin are all favored over Bitcoin. Out of these four cryptos, Monero offers the most anonymity.

Monero, unlike Bitcoin, uses ring signatures and stealth addresses to cloak both the receiver and sender’s public keys. But that’s not all. Ring Confidential Transactions can hide the transaction amount.

But even Monero can’t guarantee full privacy. In 2017, a study revealed that even these crypto transactions can be tracked. Monero prided itself on using mixins – or fake coins – to cloak a real transition. However, researchers found that they could easily identify these mixins.

Despite this, Monero is still favored crypto in crime circles.

So does this mean that crypto dominates the criminal world? Not quite.

Cash is still the preferred method in illicit activity. After all, paper money is anonymous and difficult to track. Besides, cash tends to be more available for small scale money laundering jobs, particularly in countries where crypto is not widespread.

The Key To Crypto Crime

The most significant obstacle law enforcement faces today in regards to illegal crypto payments is ignorance. Many institutions still believe crypto to be completely anonymous, and this hinders their investigation. For example, take Police One’s recent article on cryptocurrencies; it lists several useful components to consider for investigating cryptocurrencies in a crime, but it incorrectly stresses that crypto is untraceable.

The recent bitcoin arrests under the DOJ and the trial against Ross Ulbricht are both excellent examples of how knowledge of cryptocurrency can work in law enforcement’s favor. We’ve already seen other uses of crypto and blockchain being used in investigations as well, from forensics to overall law enforcement strategies.

Bitcoin isn’t some mystical, completely private payment system. The sooner the public understands the real value and spectrum of cryptocurrencies; the sooner law enforcement will be able to tackle crypto crime more efficiently. 

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Why Bitcoin Arrests Are Great For Crypto

The recent Bitcoin arrests prove that cryptocurrencies are not always the best vehicle for illicit activities. In fact, for cryptos like Bitcoin, its visibility on the blockchain may mean that crypto is more traceable than cash. While newer cryptocurrencies like Monero seek to solve this issue and provide more privacy, there is still much research to be done before a truly anonymous cryptocurrency will emerge.

While criminal uses of crypto may negatively affect the short-term prices and perspective of the new currency, it’s possible that this will erode in the long-term, as an increasing amount of the public appreciate the security and traceability of Bitcoin.

The post Are Bitcoin Arrests the New Norm? Here’s Why That’s a Good Thing appeared first on CoinCentral.

So how do you purchase crypto with a credit card? Are there any downsides?

How to Buy Bitcoin with a Credit Card

Here’s what to expect once you’ve drawn your credit card from your wallet: A lengthy KYC process if you’re completely new to the platform.

The process, of course, depends on the exchange. Generally, for a US citizen, your driver’s license should more than suffice. But just in case, it’s good to keep a scan of your passport ready. If the exchange can’t read your PDF or JPG file, be prepared to send it directly to their staff. If there is an issue, they’ll email you.

Of course, if your account is activated, and you’ve simply been using a bank transfer or wire before this, you should be good to go.

Once your account is confirmed, you should be able to use your credit card like you would on any e-commerce site. You select how much BTC you want to purchase, go through the steps of including your billing and card information and confirm the buy. Then in (usually) five quick minutes, you are the proud owner of more BTC, and you have the option to store or trade it on the exchange or transfer it to a hardware wallet for safekeeping.

Example: How to Buy Bitcoin with a Credit Card on Coinmama

Coinmama is one of the few exchanges that allow for credit cards, not just the debit versions. Like we’ve mentioned, signing up for Coinmama requires a KYC process. You must have either your driver’s license or passport scanned and ready before being able to buy Bitcoin. And make sure to have both sides of your driver’s license ready! You can upload yours as a common jpg file.

But you don’t only need your documents scanned. You’ll have to take a selfie with the document, and a piece of paper with the writing “Coinmama” and the date of the application. 

It should only take a few minutes to finish the application process. You’ll immediately receive a confirmation email letting you know it could be up to a day before you can buy crypto. If your scan was high quality, there shouldn’t be any issue reviewing your documentation. And once the process is finished, you’ll get another email saying you’re good to go.

So once you are ready to buy, how can you go about it?

You have a few options. You can buy bitcoin for set amounts, such as $100 or $1000. Or, you can set your own price by bitcoin or the fiat equivalent. 

Once you click Buy BTC, the process is fairly simple.

First, enter your bitcoin (or another crypto) wallet address. Then, select your method of payment, followed by entering your card details. Depending on your card company, you may have one extra stop. Most likely, you’ll have to enter a security code sent to your phone or email from your credit card company. Once this is completed, wait for your transaction to change from In process to Approved. At this junction, it should take around 10 minutes for the BTC to be deposited into your wallet.

Yes, it’s that simple.

What Cards to Use

Most exchanges take debit cards. Even MyEtherWallet allows you to buy Ethereum if you have a Visa or Mastercard. Most popular exchanges like Coinbase will accept debit cards from both companies but not credit cards.

Those that do accept credit cards tend to stick with Visa and Mastercard as well. So, if you have American Express, you may be up a creek.

A select few exchanges accept a couple more payment options. Bitit accepts EuroCard and N26, and Bitpanda offers several online service transfers like Skrill, a PayPal alternative. If an exchange doesn’t accept your card but offers other online payment options, you can use them as a workaround. For example, use your credit card to load your Skrill or PayPal account with funds, then transfer it to the exchange.

Why Shouldn’t You Use a Credit Card to Buy Bitcoin?

You may want to avoid using a credit card for the same reason you’d want to avoid an online bank transfer: security. Exchanges aren’t as secure as wallets, and if hacked, your information could be at risk.

Keep in mind that you run that same risk every time you buy something online or use your credit card in the stores. So, if you’re using Amazon or picking up some toilet paper at Target, you are already running this security risk. 

If you’re worried about security, check the exchange and look for a logo PCI DSS. This means their site is compliant with payment card security standards. While it can’t guarantee 100 percent security – after all, part of security is keeping your details safe – it is an important barrier against hackers.

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Conclusion

So, should you use your credit card for buying bitcoin? Right now, credit cards are one of the most convenient methods of payment, and the two most popular card options are widely accepted. In terms of security, you are not risking much more than if you had put your card in an ATM. And, if you are already verified on Coinmama or Bitpanda – you can already buy bitcoin with your credit card in just a few clicks.

The post How to Buy Bitcoin with a Credit Card appeared first on CoinCentral.

The main hurdle for blockchain mass adoption if how many users one chain can support. The Ethereum blockchain is no exception. Ethereum’s scalability is limited by its use of nodes. Each node contains the blockchain’s transaction history, user account balances, smart contracts, and storage. If the nodes grow too big, then users can be kicked off or large companies will control and maintain them.

Quantstamp is a smart contract auditing platform. In order to conduct a smart contract audit, the team will review the client’s documentation to understand the intent of the code. Then their auditors will independently check the code, share their notes, and make recommendations.

OmiseGo is a blockchain initiative that focuses on helping the unbanked get financial access.

The partnership between these two firms originated in Quantstamp’s audit of OmiseGo’s Plasma MVP – its solution to Ethereum Scalability. To accomplish this, OmiseGo uses Plasma – a Layer 2 technology. Basically, it is a blockchain that lies “on top” of the Ethereum blockchain, and because it has different consensus rules, it enables faster confirmation times and cheaper transactions. Plasma technology is promising, as it does not sacrifice security for speed or cost-efficiency.

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Plasma uses smart contracts to leave cryptographic evidence on the Ethereum blockchain. If a user attempts to cheat the system, other users can submit their complaints and get refunded.

According to the Quantstamp and OmiseGo team, using Layer 2 is essential to scaling Ethereum. Blockchains are normally difficult to change at the base layer. But Layer 2 technology can make blockchains more useful without threatening the integrity of the base layer. For example, developers will not need to use a hard-fork to implement the Layer 2 changes. Because Layer 2 Technology does not touch the blockchain’s base layer, security can be maintained while transaction speed is accelerated.

It is important to note that Plasma is an experimental technology, and OmiseGo’s Plasma MVP is one of the few initiatives using it. This is the primary reason Quantstamp was brought on – to test and ensure that it was working securely and correctly. In order to improve the technology and remove security threats, Quantstamp focused on removing bugs from the platform.

The post Quantstamp and OmiseGO Partnership Seeks Ethereum Scalability appeared first on CoinCentral.

Why buy Bitcoin in cash when so many more convenient methods exist? It’s simple: Anonymity. Buying bitcoin this way offers more privacy – and it’s fast. Here’s how.

Finding the Right Exchange and Seller

Not every exchange accepts cash payments for bitcoin, in part because this payment form doesn’t necessarily require a KYC process. However, since these P2P platforms offer more privacy, the security could be very shaky.

In reality, you’ll never be looking for just the right exchange. You’ll also want to focus on the right buyer. So when you are in the process of buying or selling your bitcoin through one of the following exchanges, make sure to:

• Only buy or sell to those with a high reputation or good reviews
• Confirm the transaction details before sending the full amount
• Meet the seller during the day, preferably in a place with other people
• Do not exchange personal details with the seller or buyer

That said, let’s go ahead and look at the P2P exchanges.

LocalBitcoins

LocalBitcoins is probably one of the most well-known options, and it’s a fairly simple platform to use. Create an account, find a suitable seller, place your order, and deposit cash in the seller’s account. Then viola! You’ve just bought crypto with cash.

LocalBitcoin’s fees are pretty low too, with a one percent flat fee on each order.

That said, you’ll be finding a seller through advertisements, so make sure you are cautious when evaluating sellers. In addition, you may not be able to buy in bulk as you would on an exchange.

Wall of Coins

Like LocalBitcoins, Wall of Coins is another P2P platform. Although, its pool of potential sellers is limited to 22 countries. It offers cash payment, but that isn’t the only option. Once you’ve found your seller and paid the cash deposit, the Bitcoin will be sent to your wallet.

Wall of Coins is also more private. While LocalBitcoins requires your phone number and email, this platform only requires your phone.

Keep in mind, however, that more anonymity means less security.

Bitit

Bitit is a bit different, because you can’t pay with cash directly. Instead, you buy cash vouchers that you can then use to buy Bitcoin. However, this platform is available in over 50 countries, and you can buy in bigger quantities. You can also pay in-person with the seller, but many users have complained that it’s not a clear process.

The drawbacks? You’ll need to set up a KYC process for orders over €25.

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LibertyX

LibertyX is a USA-based platform that allows you to buy Bitcoin in certain retail stores across the USA. Unlike the other options, you do need to verify your identity to start out.

As mainstream as it would be to buy bitcoin with cash in stores, there are some additional things to consider with LibertyX’s platform. First, some of the retail stores might add an extra fee on top of LibertyX’s one percent transaction fee. Second, if you use Facebook to log in, you may be compromising your security.

Buy Bitcoin with Cash

The real way to buy Bitcoin with those greenbacks? Find a Bitcoin ATM. They are available in 75 countries. There are over 3000 ATMs in the US alone, and you can buy Ethereum, Dash, Bitcoin Cash, Litecoin, and more.

The downside? This cash-only method will charge you five to ten percent in fees. However, unlike the other options, there’s no KYC process, and it’s completely anonymous. So if you want to maintain your privacy, this is probably the way to go.

In Conclusion

Should you buy Bitcoin in cash? If privacy is your main concern, then it’s perfect. Buying in cold hard cash is a fast way to invest, but keep in mind that the lack of security means you should take caution.

The post How to Buy Bitcoin with Cash appeared first on CoinCentral.

But there’s an issue with diamonds. As with any popular industry, the diamond market isn’t exactly squeaky clean. Some diamonds, known as conflict diamonds, are illegally traded to fund wars abroad. You may not know this due to the high demand for diamonds. Almost 50 percent of the demand for diamonds come from the US — and it isn’t a surprise. After all, it is the go-to jewel of engagements and weddings. And because of its hardiness, diamond is ideal for industrial use.

That said, mining for diamonds can be a violent affair. The 2006 hit Blood Diamond, starring Leonardo DiCaprio, introduced the travesties related to diamond mining in Africa to the world’s stage.

Regardless, stakeholders in the diamond industry rightfully want to stop the trade of conflict diamonds, and blockchain might be the solution.

What Is a Conflict Diamond?

For those who don’t know, a conflict diamond is an uncut diamond that is mined in an armed conflict zone. The diamond is then traded, and the funds are used to finance the fighting. These blood diamonds are usually associated with conflicts in central and western Africa.

According to CNN, about 4 percent of the world’s diamond population came from Sierra Leone during its civil war (1991-2002). And that’s from just one country! In an article by CBS, experts suggested that blood diamonds could make up 15 percent of the diamond trade.

Despite these statistics, there are measures in place that attempt to smother the illegal industry. The primary actor is the Kimberley Process. This certification scheme connects local governments and international organizations to solve the problem. Their solution: Ensure every shipment of diamonds from these areas has certification.

Does It Work?

The Kimberly Process says it does and claims a 99.8 percent success rate.

But with so many intermediaries, and so many steps between mining and selling the diamonds, fraud is still highly probable. Many believe the process could be more effective, including the diamond giant De Beers.

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The Diamond Blockchain

The De Beers Group, which owns over 30 percent of the diamond market, has recently announced its intent to pursue blockchain tech. That’s right. One of the industry leaders wants to utilize the blockchain to curb conflict diamonds.

From what we knew about blockchain, it should work. Cataloging diamonds on the blockchain will create transparency. Only a select few will have access to the ledger, in order to ensure that each individual in the process does their job correctly. You no longer need to trust governments, the mines, the shipment team. If the diamond is certified on the blockchain, it’s legit.

De Beers plans to track the diamonds from initial mining to final sale. That way, you can trace every move of the diamond on the digital ledger.

Their blockchain venture, Tracr, launched in January 2018. Despite being founded by De Beers, the company stresses that it has no access to the data unless it’s shared by the data owner. Using the Kimberly Process as a guide, they’ve invested with diamond offices, producers, graders, retailers, and other stakeholders to make the project a reality.

But they aren’t the only ones using blockchain to kill conflict diamonds.

In 2015, Everledger was used to securely track diamonds. It came back in 2017 with a new Diamond Time-Lapse plan (DDLP). This new initiative tracks the whole process, from mining to certification, in real time.

But Everledger isn’t completely unrelated to De Beers, either. This tech was built by Dharmanandan Diamonds, a trust of the DDPL and a sight holder of De Beers. In other words, the creators of Everledger are authorized purchasers of rough diamonds by De Beers.

Is De Beers the Solution?

IBM joined the diamond-tracking trade in April of 2018, partnering with various jewelry firms, and they weren’t alone. In fact, a Canadian NGO, Impact, left the Kimberly Process altogether, citing that the De Beers solution was unsatisfactory.

If this is true, there could be more room for blockchain tech development in the diamond industry.

Summary

Saying conflict diamonds are an issue is an understatement. The funds from these illicitly traded gems are funding violence and terror. Blockchain offers a stunning solution.

So far, we’ve seen industry leaders accept the new tech with open arms, but there’s still room for the technology to grow, and the process can still evolve.

But one thing is certain: These initiatives are making us think about how we can prevent the trade of blood diamonds and pave the way to peace.

The post The Diamond Blockchain: Ending Blood Diamonds with New Tech appeared first on CoinCentral.