How does proof-of-stake "mining" work? - Bitcoin Stack ...
Block.co — Thriving By Working Together
Link to our website:https://block.co/block-co-thriving-by-working-togethe This year brought a lot of difficulties to most of the people around the globe. Together with that, in 2020 many companies and businesses were hit by the crisis, from the small entrepreneurs to the leaders of the global market. We had to learn and innovate to adjust and thrive in the new ways of working, collaborating, and communicating. The Coronavirus pandemic gave us many valuable lessons to learn, but most importantly – we understood that only by working together we can overcome global issues. As most companies, at Block.co, we had to adapt to the disruptive changes dictated by the lockdown measures. But we managed to get through by focusing on what we can do best and offering our help to institutions that would benefit from our solution in times of crisis. Together with that, we took time to support our community and educate people on Blockchain Technology, its potential and upcoming trends, through our free webcasts, which received amazing feedback and gathered people from over50 countries around the world! Our efforts paid off, and in the first 7 months of this year, Block.co issued more than 25,000 documents on one of the most robust blockchains – Bitcoin. https://preview.redd.it/o2cyhq9c6cf51.png?width=1920&format=png&auto=webp&s=e76bd83db47179fc1f39dc04e29da068d14ec8cc As an innovative organization at the early stage of industry development, we are thankful to each and every one of our partners from both the private and public sectors. Being at the forefront of the blockchain industry we understand our responsibility to continuouslyimprove our solution and keep up with the latest technology trends to offer the best solution to our customers. Block.co’s mission is to eliminate document fraud everywhere, by transforming the way institutions manage digital records. Our platform is easy to use, as both the issuer and the validator will not need to understand blockchain technology. Our solution uses a very simple drag-and-drop method. Moreover, it is highly secure, as we store all the information on Bitcoin’s blockchain. Our clients can be sure that their PDFs will be 100% tamper-proof. Finally, our product is based on verifiable PDFs meaning that there is no limit regarding the number of issued documents per batch. If you want to learn more about our solution watch our Platform Walk-Through Video. Thank you for trusting Block.co and choosing us as your solution provider! We value your support and engagement and will continue delivering our best work for you. Stay tuned with us. More updates coming soon! https://preview.redd.it/6turv6gf6cf51.png?width=1920&format=png&auto=webp&s=140922cbb35dfaf51caae1fc86d0af96906e513d For more info, contactBlock.codirectly or email at [[email protected]](mailto:[email protected]). Tel +357 70007828 Get the latest from Block.co, like and follow us on social media: ✔️Facebook ✔️LinkedIn ✔️Twitter ✔️YouTube ✔️Medium ✔️Instagram ✔️Telegram ✔️Reddit ✔️GitHub
https://preview.redd.it/crbhgda6c0651.png?width=640&format=png&auto=webp&s=522357d06b1f3c893f996dbd3b79aab5461e4dfb Blockchain has been described as an omnipotent technology since its inception. It is expected to affect all walks of life and even reshape production relations. However, blockchain itself has a technical bottleneck called "Impossible Triangle", which is still far from its potential. The so-called "Impossible Triangle" of blockchain, also known as the "ternary paradox", means that no matter which consensus mechanism is adopted by blockchain network to determine the generation mode of new blocks, it cannot take into account the three requirements of throughput, security and decentralization at the same time. For example, bitcoin can theoretically guarantee security and decentralization on the basis of large amount of computing power. But the disadvantage is that it is difficult to improve throughput, slow speed and high cost. EOS, which is said to take improving throughput as an important technological breakthrough, adopts the consensus mechanism of dpos, greatly reducing the number of nodes and being criticized for sacrificing the essence of decentralization. Although the "king of ten thousand chains" Ethereum has the partition technology as the solution of capacity expansion, it can't fall down because of the technical difficulty. Forbes uses "zero knowledge proof" technology, greatly improves throughput without sacrificing decentralization, and solves the "Impossible Triangle" problem that has plagued the blockchain industry for many years. 1、 Zero knowledge proof First, we introduce the concept of lower zero knowledge proof. Zero knowledge proof, as the name implies, is not only to fully prove that they are the legitimate owners of certain rights and interests, but also not to disclose relevant information - that is to say, the "knowledge" to the outside world is "zero". The certifier proves to the verifier and makes him believe that he knows or has some information, but the proving process cannot disclose any information to the verifier. Case 1: a wants to prove to B that he has the key of a room. Suppose that the room can only open the lock with the key, and no other method can open it. There are two ways: ① A shows the key to B, and B uses the key to open the lock of the room, so as to prove that a has the correct key of the room. ② B. make sure that there is an object in the room. A opens the door of the room with his own key, and then takes the object out and shows it to B, so as to prove that he does have the key of the room. The second method belongs to zero knowledge proof. Its advantage is that in the whole process of proof, B can never see the appearance of the key, thus avoiding the leakage of the key. Case 2: there is a circular corridor. The exit and the entrance are the same, but there is a door that can only be opened with a key somewhere in the middle of the corridor. A needs to prove to B that he has the key to the door. With zero knowledge proof, B looks at a entering the corridor from the entrance and then going out of the corridor from the exit. At this time, B does not get any information about the key, but it can completely prove that a has the key. https://preview.redd.it/psbzg9ylc0651.png?width=571&format=png&auto=webp&s=6d58835a211e4d391112cf39720f4aaecda869f6 A large number of facts prove that zero knowledge proof is very useful in cryptography. If zero knowledge proof can be used for verification, many problems will be solved effectively. So how does Forbes use zero knowledge proof to improve TPS? 2、 Second floor expansion It is difficult to solve the "Impossible Triangle" problem if you directly modify the blockchain architecture itself to improve the throughput. After all, the more nodes, it is very difficult to improve the TPS technology on the premise of decentralization. But Forbes thought of the "curve saving the nation" scheme, that is, without changing the blockchain itself, to improve the TPS by setting the second layer architecture. Here is a case in life: If the Forbes public chain is regarded as a real-life bank, and the transfer operation is carried out on the Forbes public chain, it is like handling the transfer business in the bank's counter, but the difference is that the bank is centralized and the blockchain is decentralized. In the case of few people, it's easy for users to handle the transfer business in the bank, but once there are more people, it's easy to form a long queue, which makes the users in the back have a long wait. Blockchain is like a bank. When there are more people in the transfer queue, there will be a block. So to improve the throughput of blockchain is how to improve the speed of bank transfer business. But the bank is so big. There are so many bank staff (you can compare the bank staff to the nodes of the blockchain). It is very difficult for the bank to improve the speed of handling the transfer business. This makes the people behind the line angry, but they have no choice. https://preview.redd.it/euxut33zc0651.png?width=658&format=png&auto=webp&s=899292e272be66b1ead3113db0d21fd9d8985dca Finally, one of the people at the back of the line couldn't bear to wait. He stood up and said, "we can't wait. We have to find ways to improve our efficiency." And they said to him, you are not a banker. What can you do. So, the man said confidently, "let's see my operation and cooperate with me.". Only the person pulls out a book for bookkeeping, starts from the fifth person in line, records the balance of each person's account after transfer in detail, and then asks each person to confirm that the note book is authorized by hand print. Then after the last person records, he gets an account book for recording the final balance of the owner's account. Although there is no specific transfer record in this account book, it is recorded accurately Record the balance of each person's transfer. Although some people transfer to each other many times, no matter how many times they transfer, people only care about the balance of their final account After that person's statistics, just in time, the fourth person in line finished the transfer at the bank. Then he walked into the bank with this account book and said that this was the account balance after the fifth person started the transfer of all the people. The bank only needs to change the account balance of these people in the system. At the first sight of the bank, it's not easy. The staff swiped it and changed all the balances of these accounts at once, so that the bank's handling of transfer business increased by several hundred times. This is how Forbes is implemented. By setting the second level node, which is called relay, let relay collect the account transfer information of queued users and verify the user's signature. After calculation, integrate the token balance information of the final address into the Merkel tree and submit it to the chain, and then process it at one time. We call this method of improving the block chain TPS "the second layer expansion". At first glance, this scheme is perfect, but there are various problems in practical operation. For example:
How can the bank believe that the person with the final account book actually counts the transfer requests of all the queuers?
What if this person, because of personal grudges, intentionally misses the statistics for those who don't like it?
What if this person secretly changes the account balance on the way to the bank?
At this time, zero knowledge proof will be of great use. https://preview.redd.it/25p5vrb9d0651.png?width=599&format=png&auto=webp&s=9d07cb226d1f6f318703c76c5f4d9000b370145a 3、 Zero knowledge proof + second layer expansion + smart contract To solve the above problems is actually to solve the problem of trust. The bank is not stupid. It's OK to let the bank send its own staff. Each staff sent by the bank will issue a "work permit" and an open box with a lock before departure. When you count transfers for people in line, the account book is safe, because people will supervise him. When you count the last person, the staff will put the account book into a locked box and close it. In this way, on the way to the bank, the staff can't do evil and modify the account data. After arriving at the bank, the bank only recognizes the "work permit" and confirms that it is its own staff. Without opening the locked box, it can be determined that this person is indeed trustworthy. It can be seen that in the whole process, the bank gets ZERO account information, but believes that the transfer data counted by this person is safe and reliable, which is zero knowledge proof. The principle of Forbes technology is exactly the same. The main chain will use the zero knowledge circuit to generate the certificate called proof. When relay counts the transfer information of users, it will finally package and submit the general ledger Merkel tree, and use proof to encrypt. After the main chain sees the encrypted package, it will use proof to decrypt, perform the calculation of modifying the address token balance, and then broadcast to the whole node. But there is still a problem that hasn't been solved, that is, what should staff do if they intentionally miss the bookkeeping of people who don't look good? Or the staff ask for a tip from the user. If they don't tip, they don't charge. What should we do? In fact, it's also easy to handle. People who miss the account or are asked for tips will definitely complain to the bank angrily. After the bank checks, they only need to deduct the balance of the staff's account. Here Forbes will arrange smart contracts on the main chain, and require the added relay to mortgage a sufficient number of GFS on the main chain. If relay misses the user transfer request or intentionally increases the transfer fee, the main chain will deduct the pledge GFS of relay through the smart contract to compensate the user's loss. See here, congratulations on finally understanding the technical solution of Forbes to improve TPS. Under the support of huge distributed mining pool, Forbes not only has a large number of nodes to provide ultra-high security and decentralization, but also uses zero knowledge proof + second expansion + smart contract to easily increase TPS to more than 10000, which solves the "Impossible Triangle" problem of blockchain. I think you must have noticed the details of the pledge of GFS by relay. If smart people don't explain, they can predict the future value of GFS from the details.
I've reached the extent that I think I can tell this story. This is my experience with the cult
Introduction I am hesitant to begin writing about these memories, and for two reasons. The first is out of fear - fear of retaliation. You see, I was taken advantage of by a cult that I escaped a few years ago in the summer of 2018. I wasn’t involved for long - ten months - but that wasn’t the end of the cult’s influence on me, as they cleverly had a previously unaffiliated visitor contact me and try to bring me back during the period afterwards. I believe they are still keeping tabs on be covertly, but this may just be my paranoid nature. For nearly the entire first year afterwards, I was always looking over my shoulder to see if I was being followed. They definitely have an interest in roping me back into the fold, as you will see how sociopathic these people are. I’m still traumatized, and although I have healed a great deal from these trials, there is still lingering conditioning that causes me panic attacks and anxiety, which exemplifies my schizoaffective disorder. I attribute much of the reason I’m houseless now to the combination of my mental health and trauma caused by this group. The second reason I am hesitant to begin writing is also out of fear, but this is instead a fear of not being able to deliver on my promise to expose this cult. I know I have the ability to write about my account, but will it be good enough? Will I be throwing these words into the electronic ocean like so many others with little effect on the world? I feel that no matter how hard I try, I will be unable to capture the cult’s devious acts in such a way to convey what it was like for me, a vulnerable individual, to be slowly turned into an obedient slave. Inadequacy. This is an important piece of my psychology. After watching my mother decay and die for the first nine years of my life, followed by being raised by an abusive, narcissistic father, I have a profound feeling of inadequacy ruling me. I never feel like I am good enough; that I have to self-sacrifice - to the point where I believed I had to be as good as Jesus Christ - in order to achieve a passable level of human adequacy. The cult took advantage of these feelings in spades and left me a shell of who I was previously. Fortunately, the period of houselessness that has extended the last year or so of my life has been a radically transformative period where I feel able to step out from barriers that previously trapped me. I feel freer than I ever have been, and to be honest, I owe a lot to the cult for pushing me to my breaking point and learning where my boundaries are. In fact, I don’t believe I could have stepped away from the denial of having a feminine side if it weren’t for the ridiculousness of how far I was pushed. Now, I stand strong, ready to accomplish this mission life has presented me. It is my basic civic duty to tell my story and warn the public about this group and others who prey on vulnerable individuals in an unstable socioeconomic period. They deliberately attract people who are vulnerable for personal or financial reasons. For instance, there was a flat-earther from Belgium who was here illegally that got roped into our group by being attracted to the messages of sovereignty and their abundance of kooky new age beliefs. They even tried to get me to recruit more members using the same strategies they hooked me with - which is standard cult behavior. This leads right into how I got involved with the cult in the first place. Part of it is my fault, as I was young and naive. I still am, but now I have the wisdom to not throw myself out there for any group to start manipulating. There are many people who can be drawn into their preying behavior, and it is important that I elaborate on how easy it is to get duped, so others don’t follow in my footsteps. As you will see, the group was bizarre in many ways. I want to start off by saying that I did not join an organization of pee-drinkers who practiced blood-magick on the side of Main Street. Instead, I started working for a nonprofit that promised to change the world, and appeared to have the ability to do that. The weirdness grew exponentially over time, gradually as they conditioned us to accept their way of life. On my own end, I wanted to join an intentional community; one where everyone involved works towards a singular end as one unit. I longed for the camaraderie and an alternate way of life. I wanted something different than what - as the cult called the common culture - “The Matrix,” or “Babylon” offered. There are such communities, but because of devious groups like this, everyone needs to be cautious when attempting to find them. I still seek to find or create an alternative lifestyle for myself where I can live amongst my brothers and sisters away from the mass-produced consumer culture of the world. It’s been a hell of a journey, but I am happy where I am now. If anything, the group taught me that self-love is our first love; if the gardener does not take care of themselves, then who takes care of the garden? With my efforts to find such a community as I wanted, it was inevitable that some group would have sunk their teeth into me. I am grateful that I was able to recognize the far-flung insanity that I was trapped in and escape. Now I just need to focus on recovering and helping others who may be searching for the same things I am. Chapter 1 It all started early in 2017. I was working on reverse networking, like trying to place a letter on someone’s shoes to let them know I exist. I was hoping to find a project I could use my skills as a writer and juggler by broadcasting who I was on our small online community, The Shrug Life Syndicate, on Reddit. I was so desperate to find such a community that fit my ideals and goals that I didn’t even conceive that someone could be watching in order to learn about me. They first posted a link to their site on our community’s board, when they were still going by the Awakening Sovereignty Collective. To best understand how I perceived them initially, you have to understand that I was lost in what we at the Shrug Life Syndicate call the synchronicity slip stream. An aspect of my schizoaffective disorder, I often get lost in various series of synchronicities that form a coherent narrative that compels me to behave differently than I otherwise would. It is an amazing feature of my mental health for creativity and finding alternative solutions to problems, but it can be debilitating when trying to fit in to the normal world. When the ASC posted, I believed applying on their website was the obvious thing I should do in order to accomplish my cosmic mission. Well, nothing happened at first, and I forgot about them until several months later until I received an email stating I was hired. This came after a series of strange tasks from anonymous accounts that seemed to be tests to see if I was as capable of a writer as I portrayed myself as being. I remember one test was to see if I could write a sales pitch for “Unicorn Poop,” an edible snack with a humorous twist. I don’t have any proof that these two events are connected, but it definitely tripped my radar as odd that they happened one after another, and nothing ever came from the sales tasks. Having passed their tests, I began working with them online. It was a slow process, as there wasn’t a lot of work right out the gate, but there was a lot to learn. Their websites were many in number and often confusing. I had difficulty navigating them and almost quit trying within days of getting started. I remember crumbling back into my addictive nature one night as the wailing cries of depression came roaring back with my initial perceived failure. If I were not partially psychotic, believing the universe was guiding me to the salvation I sought, then that would have been the end of it. Many other people seemed to have given up while I was still new to working for them. If I were to guess, I would say that this was deliberate on their part in order to weed out only people like me, who were in some way desperate to be a part of the group. With only a small number of desperate people finding their way into the clutches of these people, it must be easier to control them as well. The ASC promised a new way of life for anyone seeking it. They claimed to be a planetary alliance that was helping ecovillages, nonprofits, conscious businesses, and individual change agents. They were working on a cryptocurrency and software suite that would help communities better serve the world. This was at the peak of the bitcoin bubble, where many people unfamiliar with cryptocurrencies were trying to get in on the hype. They touted a number of figures and claims which ultimately turned out to be false or otherwise misrepresentative of the truth, but in the moment I believed everything they were shoveling. It was easy for them to sell the idea and project as they were all natural sales personalities. I attended a lot of meetings, particularly with the writer’s team, and started to get to know the people behind the project. In the moment, they appeared to be down-to-Earth and relatable, but highly conscious individuals who really cared about the world and were motivated to do the work necessary to make the changes needed for the planet. In hindsight, they really only cared about money, and were playing a part to catch people like me. The leader was named Dakota, if that was his real name (I believe most of the main group had adopted a second name to hide who they really were). He was a young man claiming to have graduated high school at ten, and he founded a company known as STADA which was facilitating much if not all of the software needs of the ASC. He was brilliant, but I believe most of his brilliance was self-generated through his ability to sell himself as more than he really was. He always acted like a millionaire who was going to change the world, which made it easy for him to sell the project to people like me. The co-leader was named Lila. She was a cheerful person who always had something positive to add to the conversation. While working with her, I found this to be a powerful part of her personality. It was hard to say no to her, as she had a motherly vibe and she strategically would ask you to do things that left you feeling compelled to help her, for the good of the project. She first won me over by claiming to run a retreat center for circus skills. I only heard of this in the beginning of my journey with the group, so I believe it may have been a bogus means to shift my opinion of them. The leader of the writer’s team was named Teahna, who was beautiful and knew how to use her womanly charm to influence others. She seemed to be new to the project as well, having recently written her first book, and my time working with her online seemed to be a learning experience for both of us. I believe this was also planned, so that I would have some support learning what I was supposed to be doing on the various websites that seemed to pile up more and more as time went on. The work was easy at first. There were no assignments or anything like that. It was all pile work - as in, just grab a shovel and get paid for what you move. As a writer, I naturally gravitated to the writers team’s tasks, but I also helped with the education team and the core tasks of the group. Mostly I wrote articles and website content for them, but I also wrote fake twitter bios, social media posts, and began working on their constitution/manifesto before arriving at their headquarters. I was making good money, both in real dollars and their own cryptocurrency, Equality Keys. They claimed we could trade their currency for real money at any time, which turned out to be a lie. They often only let us exchange it at certain times at a reduced value. But, I was naive enough to believe that the numbers on my screen were real and meant I was doing good. It wasn’t long before I earned upwards of thousands of dollars worth of their currency, which was promised to rise in value as the project continued to grow and evolve. After a few weeks working with them, they began toying with a name change to Earth Nation. I believe this is a key part of their method of staying under the radar. By changing names and projects frequently, they never gather enough clout to be exposed as the charlatans that they are. They would later create a new project known as Earth Cycle, and there was a tentacle organization we got hooked into after our stay with the main group called Lovecycle. In regards to the latter, I will never forget the name Lovecycle, as that is when the bulk of bizarre and traumatic events occured. This is around the same time that my girlfriend at the time began helping out as well. We worked together as a writer and artist combo, and they were initially excited to have another person joining to help. There was some friction though, such as bluntly being told they had no need for an artist at this time after they welcomed her onboard, and there were moments where it seemed like they did not want her to be a part of the project. As they turned her and I against each other much later in our odyssey with them, I think this must have been deliberate to sow the seeds of conflict between us. Again, this is classic cult behavior. I regret bringing her into the whole thing, as she is no doubt as traumatized as I am. What really allowed me to lose myself in the hope of the project was the possibility to do exactly as I dreamed: travel with a caravan, juggle at festivals, help sell whatever my girlfriend and others made, and write gonzo journalism about what Earth Nation was doing. One of the main draws of the group was that they advertised in the meetings about how they had a proposal system, where anyone could come with their plan and it could be voted on to be given resources. They were interested in my idea (how much of that was just gaslighting me to believe I’ve found the perfect gig, I don’t know), and wanted me to do some journalism about my experiences moving to their headquarters just outside Eugene, Oregon - on the other side of the country. My girlfriend and I were ecstatic at the idea of starting a new life on the west coast. It was the dream we both shared, to abandon the broken world we knew and join something better. We began preparing for the move, sold all of our stuff, and eventually took off from the airport with only three bags to our name. It was a leap of faith, and we were never happier to embrace our dreams and begin to live a much more interesting life. Chapter 2 We left on October 25th, about a couple months after I first began working for the ASC. It was an amazing trip that we thought would represent our rebirth. I remember arriving at the airport feeling as though I was leaving a part of my past behind. I felt a wave of solemn emptiness and fear over this, but I have since learned such feelings are common with change of this magnitude. Mostly, I felt joy that a new chapter of my life was unfolding before my eyes. It was a time where it seemed like we had infinite potential right at our fingertips. Who knew what would actually go down over the coming months? We were grateful for the opportunity and happy about the change. My girlfriend even changed her name to Awen to start over fresh as a new person. I still stuck with my birth name, Gregory, but eventually I would start going by the name Rory after having been pressured to by the group. I remember looking out the window while Awen took pictures of everything we flew over. It was a trip in itself to see the world from such an angle. I was amazed at the number of wind farms in the middle of the country. Likewise, the closer we got to our destination, the more mountainous the ground beneath us became. The change in scenery would pale in comparison with the change in the culture of the west coast - one of the main reasons I now consider Portland my new home. Landing in Eugene’s airport, we were regaled with Ducks memorabilia. This was a pleasant surprise, as I had forgotten that this was where an old hero from my track days, Steve Prefontaine, used to run. This made me feel hopeful while waiting for Teahna and Prism, the leader of the educational team. I remember pacing the entrance hall of the airport with a giddy smile stretching from ear to ear. This was it, I told myself: I had finally found my new home. After a long day of airline travel, we were eventually picked up in Prism’s van. We were met with hugs and smiles, which rejuvenated us after the natural stress of the trip. We chatted the entire way back to Triangle Lake, where their headquarters supposedly was. Both Awen and I were antsy while being shaken back and forth while sitting on Prism’s bed for the duration of the drive. I distinctly remember the beautiful colors of the autumn trees as we drove past. This last little bit of our trip took roughly forty-five minutes, but it felt like we were pulling up to the headquarters in an instant. I caught a glimpse of a sign as we pulled into the long driveway: Circle of Children. This would be where we stayed for the first two months. The area was gorgeous. Giant trees covered in green moss extended as far as the eye could see. With the abundance of fern-life, it reminded me of a Jurassic paradise. Out the cracked window of the van, I could hear tree frogs chirping in harmony. It was certainly something out of another world compared to the east coast. We stopped in front of the main office - the only building with wifi. If I were to graph the amount of access to the internet we had across the ten months we were involved, it would have a steady, negative slope. Of course, while being conditioned by the group, it was barely noticed, as we grew less dependent on the internet as time went on. We were never barred from the outside world - in fact we interacted with it regularly - but the idea of leaving was made so impossibly far outside the bounds of possible choices through a long series of scripted events. Which is why the entire beginning of our stay at the Triangle Lake Convention Center seemed like something out of a fantasy paradise. Everything, from the overarching narrative we were fed, to the day-to-day interactions, was designed to win us over, gaslight us, and manipulate us emotionally by using our traumas against us. In the aftermath of the whole escapade, I learned that this is the type of manipulation that cults use to prevent members from seeing reason while keeping them docile, obedient work horses for the greater project, whatever it may be. It is clear to me now that Earth Nation and all tentacle organizations are a purely criminal enterprise - a money-making machine for those at the top of the hierarchical pyramid. Even though we were supposedly a DAO - a decentralized autonomous organization - there were clearly people who were centralized leaders profiting from everything the group did. And everybody played their roles well upon our arrival. We were greeted with another barrage of hugs as we got out of the van. Everybody was excited to finally meet us in person, as were we to meet them. We chatted with Dakota and Lila for some time outside of the office. They were the exact same as their online personas. In the moment, this gave us a sense that these people were genuine, but in hindsight it serves as a reminder that anyone can create a convincing character and play them whenever they want - even if they choose to never take their deceptive masks off. We were then shown where we would be staying. Up the hill and to the left we drove until we were in front of Carmen Hall. It was a quaint dorm-style lodging with a large common area and a small kitchenette. Many nights were spent in the common room with the others who were staying in the building. Because we were a couple, we were given the largest room with its own bathroom. That’s another thing that changed in a downward slope: our living quarters. Over the course of the ten months we were with them, we were downgraded from having our own space, to sharing space, to living in a tent. And again, because of the conditioning, we were fine with the change. Sometime during the early evening, we went back down to the dining hall and kitchen which was across the way from the main office. Here, we met a variety of characters, including Tuva, a humble appearing guy with a large social network he brought with him to the project, and Daniella, who would turn out to be mommy dearest as she was the sole woman controlling us for the majority of our adventure on the west coast. A Brazillian native, she was as good of a manipulator as she was a cook, and we all enjoyed a wonderful meal on our first night in Oregon. Before the night was up, we went behind the kitchen to smoke with a man named Grizzly; a wild looking man who mostly kept quiet but had a mouth to use if he needed it. It was the first time we smoked in Oregon and it felt liberating to finally be in a legal state. But, as freeing and fun as being able to smoke whenever we wanted, I believe the abundance of weed we were constantly fed was a means to keep us docile. Daniella always made sure we had some weed, and would frequently smoke with us. I feel I would have been able to say something as things changed if I were not dependent on the constant stream of marijuana. Afterwards, we went back to Carmen Hall with a couple of members who also stayed there, and Daniella performed a pendulum reading for me and my girlfriend. Holding a crystal on a chain, she “read” the direction it spun as she brought it up in alignment with our chakras. She was spot on and I wanted to say that she had excellent observation skills, but I kept my mouth shut. I didn’t want to offend anyone’s beliefs, especially my girlfriend who considered herself a mystic and bought into the act. That night we cuddled in our room, smiling as wide as our mouths could. We had done it - we successfully started our new lives and were going to be a part of something we still had yet to fully comprehend. Everything was new and exciting, and while we were overjoyed, we were glad we had each other because things were still scary. If only we had known then how scary things would become. Chapter 3 The next morning, we showered, dressed, and went down to the kitchen. There was a slight fog in the air, and we saw a family of deer in a clearing off the road. We would see this family of deer several times during out stay at Triangle Lake, which greatly enthused my girlfriend. She said they were a symbol of wisdom, and must be a good sign as we continued to be indoctrinated by the new age beliefs of the group. We were early, as our daily meetings were at ten and that is when most people started to show up at the office. But Grizzly was there, as he stayed at the nurses station that sat next to the main office. He offered us some dabs, which just further enforced our belief that this was a great group to be a part of. He also offered me a metal six-shooter pipe, which proved to be the main piece I would smoke out of for the entirety of our adventure. Breakfast consisted of whatever we could scrounge up. There was a huge walk-in freezer in the kitchen that hosted tons of food when we first got there. There were also a wide selection of dry foods such as figs and nuts. That whole selection would dwindle over time, as the group got everything as donations, usually by soliciting the local food pantries and the Eugene mission and much was close to their expiration dates. It was common to open the freezer and find something moldy. This was the first time I really interacted with Doran. Doran looked a lot like me - complete with similar beard and glasses - but had shorter, curlier, and darker hair. It was joked that “I was another you.” He appeared to be a really kind-hearted person, and we frequently went to him with problems. This is likely planned as well, to have someone to vent the frustrations we were experiencing as the project transitioned to something different than what we signed up for. I opened up to him before I did with other members, even asking for relationship advice as they tried turning Awen and I against each other between, and received what I now consider a long-standing act of being a good ear with standard advice from the group. Still, he was funny and I enjoyed making strange mixtures of food with him. As it neared ten, we shuffled to the office to have our meeting. The office had two rooms, and we were all huddled in a circle in one of them. This was nice during the coming months as it was also the only room with the heater. These meetings proved to be a main means to program us, as there were many exchanges that could have only been scripted. We would often talk about one thing, but there would be a subtopic that was teased that would change the meaning of the whole meeting in the context that I heard it. Often there would be some crosstalk in the kitchen beforehand, or something during the day that warped my understanding of what was said We were required to work thirty hours a week in order to receive our basic income of two hundred dollars a month, as per our agreements before moving to the headquarters. However, it wasn’t long before they duped us by saying the basic income would be used to cover our time staying at Triangle Lake. We weren’t able to fight it, because our tongues were tied by the desire to fit in and be accepted by the group. The ways that they changed things were gradual and deliberate, so that you would never really feel like you were getting taken advantage of. It was just a change, which was alright, because there was a world to save and we were the group who was going to get it done. That was one of the major ways they were able to get away with a lot of the back-pedaling of agreements - they would always have new, unexpected surprises waiting for us. It was gradual, but they introduced several new elements of communal living that required us to sacrifice more of our money and autonomy. They did this by having so-and-so nonchalantly bringing up these concerns in the meetings, then downplaying the resulting effects as something that should be expected, then agreeing with Dakota or Lila. Keeping track of my hours was a joke. For everything I did, I was told I should have taken less time in order to do. The criticism I received came tongue-in-cheek and constructive at first, but steadily devolved into a series of harsh critiques that would leave me distraught and unable to think clearly. I was still unmedicated back then, and my emotional state was as turbulent as a hurricane. They did similar things to my girlfriend, as Lila took her under her wing, treating her as her child in order to take advantage of her own trauma she had with her mother. If there was one thing these people really excelled at it is control. They figured us out quickly and efficiently and then used our traumas against us. Our second night there consisted of an informal group of the residents who stayed at Carmen Hall staring into each other’s eyes and then saying out loud what we felt at that moment. I remember staring at Daniella, who was a silhouette with the lamp directly behind her, and asking for healing. Something about the way she stared at me seemed to provoke a sense of trust and I felt that she would be able to help with a lot of the problems. That’s one way they won over us and got us to do whatever they wanted. They are experts at gaining people’s trust and then they take advantage of that fact. Through these scripted and planned events they were able to warp our realities to the point where we were already robotic slaves right off the bat. We certainly were eager to earn their approval and work our way to a position where we were seen as valuable members of the project. One of these planned events was Kukui’s birthday, which was just a few days after we got there. Kukui was a groundskeeper who had previously lived in Hawaii and was joked as being a ginger Jesus. He was an incredible person who really cared about the Earth. I have no idea if he was part of the manipulation or if he was there on similar beliefs that this was a group doing immense good in the world. Early on during the night’s preparation, Dakota and Lila walked up to us and asked if we wanted to go out to eat with them. This struck us as odd that they would abandon Kukui on his birthday, but we didn’t see it as too weird at the time. We struck up a conversation, where it was revealed that Dakota had two EBT cards from different states. One big hook they sunk into us was the idea that it was us versus the government. They managed to convince us that the institutions of the world were parasitic - which they usually are - but did it in such a way that made us feel like we were in a spiritual war against the bad boogie men of the world. And they managed this by gradually exposing us to more and more deliberate acts of defiance, in order to manifest our own sovereignty against the parasitic government. It’s what led to us accepting some of their more diabolic schemes. For instance, there was talk about building a village in Ava, Missouri, moving all their people in, and then taking over the mayorship. They chose Missouri for this plan due to the different building codes of the state. In the moment, this seemed like a brilliant plan for expanding the influence of Earth Nation, but in hindsight appears to be a dystopian means to increase their power and continue taking advantage of people. These were little seeds they planted that made us more comfortable with doing certain things that we otherwise wouldn’t. Awen was particularly uncomfortable with many of the things we did, but eventually they did get her to help out with their schemes. By keeping us under fear and gradually conditioning us, they were able to make us obedient as we were always looking out for our immediate survival. Fear. That is an emotion I am now excessively familiar with as a result of this cult. While I have battled paranoia all my life, they took those primal emotions and twisted them to the point that I had no idea which way was up. Each day gradually became a battle while being on high alert, as I constantly scrambled to overcome whatever artificial set-backs were planted in my way and keep up with the workload that was presented to me. My first exposure to this form of emotional manipulation came during Halloween. The night began jovially as Doran wore a plastic bag as a costume and invented a new dance that we all participated in. Daniella was preparing a large meal in the kitchen while we helped and played in rhythm to one another. The dinner we shared was only part of the night’s events that would change my life completely. After dinner, Awen and I went back to our room and talked about what we wanted to do that night. The rest of the group was still down at the dining hall and preparing for a fun night of festivities. Awen was not opposed to me going, but she was and still is a pagan and wanted to celebrate her ancestors as per the tradition of Samhain. I debated spending the night with her, but the opportunity to spend time with these new people in our life made me curious as to what they would be doing. I will also admit that I was much more controlled by my addictive nature and was excited to drink with them. So down I went. As I entered the dining hall, I saw that they were drinking tequila and generally having a great time. Naturally, I joined in and took a shot. Jovial times were had, and some time later I was offered another shot, but I did not see them pour this one. This turned out to be a crucial mistake on my part as I would find out that there was something else, something with psychedelic qualities, in the drink. It was not LSD, as I am familiar with the effects of that drug, so I am at a loss for what it could have been. As the night went on I began to feel funny. It wasn’t until we were in a smoke circle that I began to notice something was wrong. I had trouble forming words and when Grizzly asked me a question all I could muster was a “hi!” This tripped me up and I went inside to go sit down. This is where my memory starts to get fuzzy. I was mostly left alone as I sat cross-legged on a mat on the floor, but eventually there were three other people sitting around me, with a bottle placed in the center of us. I remember Prism and Josh, a carpenter who was doing some work on the buildings at Triangle Lake, were two of the people surrounding me, but I don’t remember any of the conversation they were having. I just remember getting really spooked at that time and tried to leave. I don’t know how long it took me to get back to Awen, but I do remember the headlights of a vehicle coming down the hill as I was going up. It was late by the time I made it back in into Carmen Hall, which suggests that I have no memory of what happened after the apparent spin-the-bottle episode. My memory starts to get better as I remember lying there with Awen trying to articulate what was going on, but my words just spiraled into incomprehensible nonsense. She was worried for me, just as I was worried for myself. The next morning continued on as if nothing ever happened, but I was emotionally jostled for the next few days. Nothing was ever said about what happened the night before, and a part of me was terrified that something happened Because my mother had AIDS, and that is a terror I still battle to this day, I obsessed over the idea that Prism, who was HIV positive, may have done something with me. I’ve since been tested and everything’s fine, but for a while I was terrified that I was raped. Was that a rational or irrational fear? I’ll never know. What I do know is that they took advantage of my perturbed state by subtly twisting the knife in the following days with their synchronous set-ups, making me feel guilty that I did not choose to spend time with Awen that night, and thus making me work harder than ever before. Chapter 4 in comments
In the past weeks I heard a lot pros and cons about IOTA, many of them I believe were not true (I'll explain better). I would like to start a serious discussion about IOTA and help people to get into it. Before that I'll contribute with what I know, most things that I will say will have a source link providing some base content.
The pros and cons that I heard a lot is listed below, I'll discuss the items marked with *. Pros
Many users claim that the network infinitely scales, that with more transactions on the network the faster it gets. This is not entirely true, that's why we are seeing the network getting congested (pending transactions) at the moment (12/2017). The network is composed by full-nodes (stores all transactions), each full-node is capable of sending transactions direct to the tangle. An arbitrary user can set a light-node (do not store all transactions, therefore a reduced size), but as it does not stores all transactions and can't decide if there are conflicting transactions (and other stuff) it needs to connect to a full-node (bitifinex node for example) and then request for the full-node to send a transaction to the tangle. The full-node acts like a bridge for a light-node user, the quantity of transactions at the same time that a full-node can push to the tangle is limited by its brandwidth. What happens at the moment is that there are few full-nodes, but more important than that is: the majority of users are connected to the same full-node basically. The full-node which is being used can't handle all the requested transactions by the light-nodes because of its brandwidth. If you are a light-node user and is experiencing slow transactions you need to manually select other node to get a better performance. Also, you need to verify that the minimum weight magnitude (difficulty of the Hashcash Proof of Work) is set to 14 at least. The network seems to be fine and it scales, but the steps an user has to make/know are not friendly-user at all. It's necessary to understand that the technology envolved is relative new and still in early development. Do not buy iota if you haven't read about the technology, there is a high chance of you losing your tokens because of various reasons and it will be your own fault. You can learn more about how IOTA works here. There are some upcoming solutions that will bring the user-experience to a new level, The UCL Wallet (expected to be released at this month, will talk about that soon and how it will help the network) and the Nelson CarrIOTA (this week) besides the official implementations to come in december.
We all know that currently (2017) IOTA depends on the coordinator because the network is still in its infancy and because of that it is considered centralized by the majority of users. The coordinator are several full-nodes scattered across the world run by the IOTA foundation. It creates periodic Milestones (zero value transactions which reference valid transactions) which are validated by the entire network. The coordinator sets the general direction for the tangle growth. Every node verifies that the coordinator is not breaking consensus rules by creating iotas out of thin air or approving double-spendings, nodes only tells other nodes about transactions that are valid, if the Coordinator starts issuing bad Milestones, nodes will reject them. The coordinator is optional since summer 2017, you can choose not implement it in your full-node, any talented programmer could replace Coo logic in IRI with Random Walk Monte Carlo logic and go without its milestones right now. A new kind of distributed coordinator is about to come and then, for the last, its completely removal. You can read more about the coordinator here and here.
These are blockchain-based cryptocurrencies (Bitcoin) that has miners to guarantee its security. Satoshi Nakamoto states several times in the Bitcoin whitepaper that "The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes". We can see in Blockchain.info that nowadays half of the total hashpower in Bitcoin is controlled by 3 companies (maybe only 1 in the future?). Users must trust that these companies will behave honestly and will not use its 50%> hashpower to attack the network eventually. With all that said it's reasonable to consider the IOTA network more decentralized (even with the coordinator) than any mining-blockchain-based cryptocurrency You can see a comparison between DAG cryptocurrencies here
Some partnerships of IOTA foundation with big companies were well known even when they were not officialy published. Some few examples of confirmed partnerships are listed below, others cofirmed partnerships can be seem in the link Partnerships with big companies at the pros section.
So what's up with all alarming in social media about IOTA Foundation faking partnerships with big companies like Microsoft and Cisco? At Nov. 28th IOTA Foundation announced the Data Marketplace with 30+ companies participating. Basically it's a place for any entity sell data (huge applications, therefore many companies interested), at time of writing (11/12/2017) there is no API for common users, only companies in touch with IOTA Foundation can test it. A quote from Omkar Naik (Microsoft worker) depicted on the Data Marketplace blog post gave an idea that Microsoft was in a direct partnership with IOTA. Several news websites started writing headlines "Microsoft and IOTA launches" (The same news site claimed latter that IOTA lied about partnership with Microsoft) when instead Microsoft was just one of the many participants of the Data Marketplace. Even though it's not a direct partnership, IOTA and Microsoft are in close touch as seen in IOTA Microsoft and Bosch meetup december 12th, Microsoft IOTA meetup in Paris 14th and Microsoft Azure adds 5 new Blockchain partners (may 2016). If you join the IOTA Slack channel you'll find out that there are many others big companies in close touch with IOTA like BMW, Tesla and other companies. This means that right now there are devs of IOTA working directly with scientists of these companies to help them integrate IOTA on their developments even though there is no direct partnership published, I'll talk more about the use cases soon.
We are excited to partner with IOTA foundation and proud to be associated with its new data marketplace initiative... - Omkar Naik
IOTA's use cases
Every cryptocurrency is capable of being a way to exchange goods, you pay for something using the coin token and receive the product. Some of them are more popular or have faster transactions or anonymity while others offers better scalablity or user-friendness. But none of them (except IOTA) are capable of transactioning information with no costs (fee-less transactions), in an securely form (MAM) and being sure that the network will not be harmed when it gets more adopted (scales). These characteristics open the gates for several real world applications, you probably might have heard of Big Data and how data is so important nowadays.
Data sets grow rapidly - in part because they are increasingly gathered by cheap and numerous information-sensing Internet of things devices such as mobile devices, aerial (remote sensing), software logs, cameras, microphones, radio-frequency identification (RFID) readers and wireless sensor networks.
It’s just the beginning of the data period. Data is going to be so important for human life in the future. So we are now just starting. We are a big data company, but compared to tomorrow, we are nothing. - Jack Ma (Alibaba)
There are enormous quantities of wasted data, often over 99% is lost to the void, that could potentially contain extremely valuable information if allowed to flow freely in data streams that create an open and decentralized data lake that is accessible to any compensating party. Some of the biggest corporations of the world are purely digital like Google, Facebook and Amazon. Data/information market will be huge in the future and that's why there so many companies interested in what IOTA can offer. There are several real world use cases being developed at the moment, many of them if successful will revolutionize the world. You can check below a list of some of them.
Not having your wallet set up properly (min weight 14, etc.)
Problems that could be easily avoided with a better understand of the network/wallet or with a better wallet that could handle these issues. As I explained before, some problems during the "congestion" of the network could be simply resolved if stuff were more user-friendly, this causes many users storing their iotas on exchanges which is not safe either. The upcoming (dec 2017) UCL Wallet will solve most of these problems. It will switch between nodes automatically and auto-reattach transactions for example (besides other things). You can have full a overview of it here and here. Also, the upcoming Nelson CarrIOTA will help on automatic peer discovery for users setup their nodes more easily.
IOTA Vulnerability issue
On sept 7th 2017 a team from MIT reported a cryptographic issue on the hash function Curl. You can see the full response of IOTA members below.
Funds were never in danger as such scenarios depicted on the Neha's blogpost were not pratically possible and the arguments used on the blogpost had'nt fundamentals, all the history you can check by yourself on the responses. Later it was discovered that the whole Neha Narula's team were envolved in other concurrent cryptocurrency projects Currently IOTA uses the relatively hardware intensive NIST standard SHA-3/Keccak for crucial operations for maximal security. Curl is continuously being audited by more cryptographers and security experts. Recenlty IOTA Foundation hired Cybercrypt, the world leading lightweight cryptography and security company from Denmark to take the Curl cryptography to its next maturation phase.
It took me a couple of days to gather the informations presented, I wanted it to make easier for people who want to get into it. It might probably have some mistakes so please correct me if I said something wrong. Here are some useful links for the community.
This is my IOTA donation address, in case someone wants to donate I will be very thankful. I truly believe in this project's potential. I9YGQVMWDYZBLHGKMTLBTAFBIQHGLYGSAGLJEZIV9OKWZSHIYRDSDPQQLTIEQEUSYZWUGGFHGQJLVYKOBWAYPTTGCX
This is a donation address, if you want to do the same you might pay attention to some important details:
Create a seed for only donation purposes.
Generate a address and publish it for everyone.
If you spend any iota you must attach a new address to the tangle and refresh your donation address published before to everyone.
If someone sends iota to your previous donation address after you have spent from it you will probably lose the funds that were sent to that specific address.
You can visualize how addresses work in IOTA here and here.
This happens because IOTA uses Winternitz one-time signature to become quantum resistent. Every time you spend iota from a address, part of the private key of that specific address is revealed. This makes easier for attackers to steal that address balance. Attackers can search if an address has been reused on the tangle explorer and try to brute force the private key since they already know part of it.
An extensive guide for cashing out bitcoin and cryptocurrencies into private banks
Hey guys. Merry Xmas ! I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively. The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow. I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
A. What is required to open an account in a Private bank when you made your fortune through crypto.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise. *The origin of your crypto wealth *Your background (residence, citizenship and probity) These two aspects must be documented in-depth. How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit. 1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start. Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice. 2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand. Let’s have a look at a few examples and how to document the few profiles I mentioned earlier. The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous. The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here: *proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early. *story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day. *micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning. *signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ? *ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow. The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow: *Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig. *Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful. *Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened. *Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet. *Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time. The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me. The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative. The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point. Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria: *Seriousness of the project Extensive study of the whitepaper to limit the reputation risk *AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted *Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises... *Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
B. The tax issue I am not a tax specialist, but I can say that this year I have seen it all. Again I am not judging. You made $100m hodling, and still wouldn’t pay your taxes ? Your decision.I personally advise everyone to pay their taxes, but also to be generous, to give to charities. I mean you eventually made it. Good for you. What about you contribute to make the world a better place now? I will stop patronizing you. It’s just my 2cts, and it’s your money.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me. First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards. For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t. EU tricks Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible. Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand. Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really. Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way. Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids? Dubaï
Set up a company in Dubaï, get your resident card.
Spend one day every 6 month there
Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen. The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains). The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again. Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly. “Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out. The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
C. The cash out itself So you have accumulated patiently a good amount of wealth. For some of us who have been involved in crypto since 2010, it took years. Remember when BTC was stuck at 200$ for months? I personally feel like it was yesterday. There is no way you screw up your wealth by cashing out in a hurry or with low security standards. Here is how the cash out takes should place.
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;) What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight. The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard. Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp, The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny. Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts. Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks. Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier) Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around. Your options: DIY or going through a regulated financial intermediary. Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately. The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused. Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them! The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax. The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million. Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction. Cheers. @swisspb on telegram
Ritocoin - a 100% community driven project based on Ravencoin
tl:dr: Ritocoin is a code fork of the Ravencoin codebase and continues to track future Ravencoin developments. The project was launched to provide a more community-oriented blockchain with the same functionality as Ravencoin, without a corporate overseer, and with a more flexible model for community participation and development. It’s intention is to be a hacker’s playground for innovative ideas. Specifications Proof-of-Work Algorithm: X21S Block Time: 60 seconds POW Block Reward: Smooth curve down Community fund: 1% first year Difficulty Retargeting: DGW-180 Maximum Supply: 6 months: 993,521,892 RITO 1 year: 1,227,448,858 RITO 5 years: 1,762,210,058 RITO 10 years: 1,820,404,381 RITO 50 years: 2,030,907,256 RITO 100 years: 2,293,707,246 RITO Infinite: 10 RITO per block in perpetuity Pre-mine: None Masternodes: Researching for use case Asset layer: Was enabled at height 50,000 Links Website /ritocoin Explorer Github Whitepaper twitter [ANN] X21S This hashing algorithm was created specifically for Ritocoin, and was designed to resist FPGAs, ASICs, and NiceHash. It is X16S (16 algorithms shuffled and hashed),, followed by 5 additional hashing algorithms: haval256, tiger, lyra2, gost512, and sha256. The inclusion of lyra2 brings numerous advantages, making parallelization of the algorithm practically impossible, with each step relying on the previous step having already been computed. It is a “friendly” algorithm that makes GPUs produce much less heat and uses less electricity during mining. Take your time to learn more about us in the below story of Ritocoin... The spirit of Bitcoin continues to inspire, empower and enable people around the globe. Ten years later, just as it seemed Bitcoin was being defined by commercial agents and regulated governance, that same free and independent spirit imbued the Ravencoin community. In ten short months, however, 30% of the Ravencoin project’s net hash comes from NiceHash and the looming impact of the imminent FPGA mining cards and X16R bitstreams certainly promises to shake up the dream of this GPU miner’s darling. Ravencoin’s fair launch genuinely inspired our developers and supporters. We admire the way Ravencoin came out swinging — fighting for fairness, an honest distribution of coins and a place where GPU miners could thrive. The asset layer attracted many more miners and investors to the pools. Many Ritocoin enthusiasts came from the Ravencoin community, and continue their association with that project. The whole crypto ecosystem should appreciate the work begun by Ravencoin. Obviously they continue to inspire and motivate us to this day. It’s the reason we took action. We decided to start our own project which focuses upon at least two pillars of decentralized networks in the crypto space: community governance and a fair distribution of coins. It is a core belief throughout Ritocoin that in order to successfully develop and maintain this hacker’s playground — a place where a broad range of ideas could be tried and allowed to flourish — these two ideals must be allowed to drive and guide our community. This deep focus on community choices creates a project flexible enough to support most ideas, and agile enough to define new frontiers. A mining network’s distributed ledger is defined by its technology. Like many in the broader crypto-mining community, we value the GPU for its accessibility. These processors are available for purchase all around the world without any legal restrictions. GPUs are vastly more accessible for hobbyists and miners to acquire. They can be shipped nearly anywhere around the globe, a nice benefit to the popular secondary market which has sprung up much to the chagrin of PC gamers. More constraints exist for the ASIC and FPGA miner. Laws in some parts of the world restrict people from using or buying ASIC and FPGA mining hardware. This alone is directly in confrontation with Ritocoin’s core values of decentralized stewardship and sovereignty. The GPU, in essence, is like your voice. Anyone with the means of acquiring one GPU should be able to have their voice heard. ASIC and FPGA mining devalues the GPU miner’s voice and silos that coin’s network away from the small scale and personal mining operator. A truly community driven project means each stakeholder, regardless of size of contribution to the network’s net hash, has an opportunity to build, vote and direct. If you are already familiar with our website, discord or whitepaper, you are probably aware that masternodes had been proposed as a feature of the network from the beginning. This opened the door to ongoing discussions in the Ritocoin community regarding ● A masternode’s true purpose ● What benefit they provide to the project ● How the benefit is realized ● The collateral This discussion, governed entirely by stakeholders across the extended network yielded a defining moment for our vision of flexibility. We have not yet found the potential utility of masternodes, however, the conversation has not reached an extent to where we could abandon the idea. To quote one of our developers during this discussion on our Discord:
“Just want to give a reminder here that even though masternodes are on the roadmap, it is not set in stone. This coin belongs to the community and we will do what we as a community want to do. If we conclude that we want to take this coin a different direction than masternodes, then that is what we’ll do.” --traysi
We are all volunteers at Ritocoin. Our moderators and community leaders try to give immediate support to all users that require it. Contact us in Discord or Telegram, not only for support, but, proposing new ideas, revising old ones and just so you can find a place to get together and find people to hang out with. You are well within your rights to enjoy yourself at any given moment, and, should you feel so inclined to begin working with the team, we just so happen to be looking for ambitious individuals that see themselves as being part of a greater vision, are inspired by change, and inspired to be the change they want to see making things better in this world. Join us in a space where your ideas to build something great can become a reality. We are eager to know what you think is best for the future of Rito. What steps would you take to become more resilient, stronger, fair and decentralized? Because at the end of the day, like it or not, love it or leave it.. this is your coin, too. You can become a significant part of this project. We will help you further develop the role you wish to fill in the cryptocurrency space — influencer, developer, analyst, you name it. This is not a just-for-developer’s playground. We want the enthusiasts. We want the perplexed and the rabbit-hole divers. This is the coin for everyone who is trying to find their place on the path that Satoshi began unfolding in 2008 after the collapse of the housing market rippled out into the subsequent crash of global markets. That’s why we have Bitcoin, remember? Be your own bank. This is why Satoshi and Bitcoin.org kept their software open source. It’s up to us to keep the torch ablaze. Community funds For the first year, about 1% of mined coins are set aside into a developers fund that is used to provide bounties to the community developers who make substantial development contributions to the Ritocoin ecosystem. We have already paid out numerous bounties for important work that has already benefits Ritocoin in substantial ways. We also have another donation-driven community fund that has recently been put together for the purposes of doing fun contests and things like that. Cooperation and collaborations We have discovered a number of fatal flaws in the original Ravencoin codebase and worked with the Ravencoin developers to get those fixed in both Ritocoin and Ravencoin. This work has benefitted Ravencoin in numerous ways and we look forward to a long time of collaboration and cooperation between us and them. Many members of the Safecoin team are also in our discord group, and have collaborated with us in shaping the future decisions of Ritocoin. We have several thousand members in our group and they represent all walks of cryptocurrency life. We invite all coin developers, miners and enthusiasts to join our discord and be a part of this coin that truly belongs entirely to the community. Block reward A couple weeks ago we met for a scheduled meeting in our discord group and had a lengthy conversation about the block reward. Our block reward started at 5,000 RITO per block (every 60 seconds) just like Ravencoin. This extremely high number of coins coupled with the high profitability of mining led to unforeseen consequences with pools auto-exchanging the coin into bitcoin. This dumping by non-community miners had a very negative impact on the community sentiment and morale, as we watched the exchange price plunge. We looked at other coins and realized that this fate has befell many other coins with high block rewards. Following much discussion, we decided to change the reward structure. Starting around March 19th the block rewards will start to slowly go down in a curve until it reaches 1,000. Then the reduction will be even more slowed down with block rewards exponentially dropping at periodic intervals. We have posted charts on our website that shows what the long-term effects of our reward reducing algorithms will be. As a miner, the next 2 months will be a great time to mine and hold, while the block reward is still fairly high. We encourage all miners and cryptocurrency enthusiasts to take advantage of the current favourable block reward and build a nice holding for yourself. Then join the community and be a part of the fun we’re having with this project. This post was prepared by a collaboration of multiple Ritocoin members and was posted to reddit by the core developer Trevali, who posts to reddit under the ritocoin username and will be very happy to answer any questions anybody may have about our project. Traysi (well known in the Ravencoin community) is also an active Ritocoin developer and may come to this thread if needed. We welcome any questions from any of you regarding our project!
Transcript of Developer Meeting in Discord - April 12, 2019
Tron04/12/2019 Hello everyone. It's been a good couple of weeks for Ravencoin. Sorry I missed the last session. I was on vacation. Jeremy is looking at channel settings. Can anyone else chat? RavencoinDev (Jesse/Wolfsokta)04/12/2019 Hello Everybody! Under04/12/2019 Hey Tron! Hey Jesse! RavencoinDev (Jesse/Wolfsokta)04/12/2019 Hey Under. Thanks for joining us. Tron04/12/2019 Ok, still locked. Working on it. Who knows how to open the channel? Under04/12/2019 @traysi ★★★★★ RavencoinDev (Jesse/Wolfsokta)04/12/2019 Maybe we start with just you running the show Tron? You can translate the blond frog speak... Tron04/12/2019 We can all chat, but it isn't a community chat. It would just be a speech. [Dev-Happy] Blondfrogs04/12/2019 Seems as though, they thought that the @Core Developer open open the channel, but we can't :frowning: RavencoinDev (Jesse/Wolfsokta)04/12/2019 Ah, I see. Tron04/12/2019 Ok, the [pot leaf] means you agree, and the [mushroom] means you disagree. GO! This is the best. Much less dissent. :smiley: Ok, we thought we had the ability to open the channel, but it doesn't seem to be the case. To "thenest"! traysi ★★★★★04/12/2019 Channel should be open now bitspill04/12/2019 woot Hans_Schmidt04/12/2019 Hallo! Now it's unlocked. This is always the problem with tight security - it can backfire. 𝕿𝖍𝖊 𝕯𝖔𝖓 𝕳𝖆𝖗𝖎𝖘𝖙𝖔 CEO ∞04/12/2019 thanks @traysi ★★★★★ Under04/12/2019 Thanks guys [Master] Roshii04/12/2019 it is Vincent04/12/2019 :nerd: traysi ★★★★★04/12/2019 I updated Core Developer permissions to manage this channel. Should work in the future. Rikki RATTOE Sr. SEC Impresantor04/12/2019 Tron Bruce had mentioned wanting Restricted Assets as a wallet control instead of being on chain. Thoughts? Tron04/12/2019 >> Tron Bruce had mentioned wanting Restricted Assets as a wallet control instead of being on chain. Thoughts? I'm not 100% sure what that means. Rikki RATTOE Sr. SEC Impresantor04/12/2019 Also, seems to me from just being around here pretty much all day everyday that the community support to have only the original asset holder being the only one ever to issue a restricted asset of the same name is basically 99% universal Tron04/12/2019 Lots of stuff can be done on the 2nd layer, but not restricting peer to peer trades for those holding their own keys. That's the main reason for Tags and Restricted Assets. Rikki RATTOE Sr. SEC Impresantor04/12/2019 Basically Bruce wants to keep restricted asset issuance capabilities at the wallet level I'm seeing a big security issue with going that route Chill04/12/2019 I don't want to put words into Bruce's mouth, but that is my understanding as well Tron04/12/2019 Explain "wallet level" Wallet is a container for private keys in my vernacular. 𝕿𝖍𝖊 𝕯𝖔𝖓 𝕳𝖆𝖗𝖎𝖘𝖙𝖔 CEO ∞04/12/2019 brb, googling vernacular Tron04/12/2019 :smiley: 𝕿𝖍𝖊 𝕯𝖔𝖓 𝕳𝖆𝖗𝖎𝖘𝖙𝖔 CEO ∞04/12/2019 learn something new every day Chill04/12/2019 from verna, meaning house slave. That's you, CEO! Tron04/12/2019 Sorry, in bitcoin terminology. bhorn04/12/2019 https://twitter.com/brucefenton/status/1116482635314999296 Bruce Fenton (@brucefenton) Wallet level controls for securities might offer the best of both worlds: decentralized protocols with the ability for issuers to program and control their digital assets based on whatever rules they choose. Twitter Rikki RATTOE Sr. SEC Impresantor04/12/2019 @Tron Sorry, I wouldn't fully know exactly what Bruce was thinking when he mentioned this to the community, might not be a bad idea to get in touch with him at some point That ^^^ Sevvy (not worried til 500sats)04/12/2019 it will need to be somehow baked into the chain, though. No? otherwise wallet code circumventing it could be conceived S1LVA | GetRavencoin.org04/12/2019 If any of the committing devs have topics or updates they'd like to bring up, shooot Tron04/12/2019 Ah, ok. I think that means that issuers can control issuance with their keys and determine whether the recipient is Reg D, Reg S, Accredited, etc. That wouldn't be an on-chain function, and might need to be done first. Only later when secondary trading is approved/allowed/enabled/etc then the Restricted Asset idea is important for those that want to hold their keys/assets. IRSJonPizza | JON.NETWORK04/12/2019 When better privacy... And how? Tron04/12/2019 None of this matters if it is held by a regulated custodian. Rikki RATTOE Sr. SEC Impresantor04/12/2019 @Tron Yeah, seems to me from a security standpoint, that would be a bad idea Tron04/12/2019 No PII (Personally Identifiable Information) should go on-chain. Sevvy (not worried til 500sats)04/12/2019 so even wallet side things that Bruce mentions rely on the chain having tagged and restricted assets correct? Tron04/12/2019 But, in the US, the laws are such for Securities that KYC has to be done for issuance for sure, and likely for trading in a centralized exchange or ATS. The idea behind tags and assets is to restrict assets to addresses that are tagged. The chain is completely unaware of any other rules. It is just a tool set. Sevvy (not worried til 500sats)04/12/2019 understood Synicide04/12/2019 @Tron has there been any further thought/discussions about the hot topic from the previous dev meeting of uniqueness between regular assets and restricted assets? Last meeting ideas were tossed around for a grace peroid, or sharing unique names. Under04/12/2019 KYC Isn’t a requirement for lottery. Do you think blending in that use case hurts or helps Ravencoin legitimacy? Could the activity of unregulated securities trading, slowly become the norm much as in the same way pot is becoming legalized? How do we by code accommodate existing systems without giving up on the goal of changing the way fundamentallly people participate in the equity market? Tron04/12/2019 We've talked about it, but no decisions yet. Rikki RATTOE Sr. SEC Impresantor04/12/2019 Lastly, was thinking the dev meeting time is probably not the ideal place for community randoms like myself to voice our thoughts about non-technical specifics like we're discussing currently. Before the hard fork would it be a good idea to kinda have an open mic online forum where the devs and community can get together and talk about some of the governance type issues? Hans_Schmidt04/12/2019 Is the current plan still to include both messaging and restricted assets in the next release/fork? GUI included or only consensus/rpc level? Tron04/12/2019 In general, we feel that XYZ is different than $XYZ. There is some additional on-chain burden like holding the rule-set for the restricted asset. S1LVA | GetRavencoin.org04/12/2019 Could making the !Ownership token reissueable as $Ownership, Be viable? Keeping asset names unique for their owners? Tron04/12/2019 Tags have to be held by wallets, so there should be a cost to tagging. [Dev-Happy] Blondfrogs04/12/2019 @Hans_Schmidt We are going to try and release them on mainnet at the same time. S1LVA | GetRavencoin.org04/12/2019 Asset names being unique on chain, no matter the type, would be ideal. [Dev-Happy] Blondfrogs04/12/2019 Not sure about the GUI though. Rikki RATTOE Sr. SEC Impresantor04/12/2019 @S1LVA | GetRavencoin.org Yes I feel therr may be a disconnect on this issue between the community and the dev team regarding what u say Chill04/12/2019 I have yet to interact with anyone here who is in favor of overlapping names, to be honest Sevvy (not worried til 500sats)04/12/2019 yep IRSJonPizza | JON.NETWORK04/12/2019 No overlaps S1LVA | GetRavencoin.org04/12/2019 "Token names are guaranteed unique." Rikki RATTOE Sr. SEC Impresantor04/12/2019 Which is why I've kinda suggested maybe a round table on this issue before we try to push the code through Tron04/12/2019 Do you think that sentiment would hold with the wider community? Sevvy (not worried til 500sats)04/12/2019 It does in my experience Rikki RATTOE Sr. SEC Impresantor04/12/2019 I've seen nobody who prefers the grace period idea S1LVA | GetRavencoin.org04/12/2019 We need to properly survey all channels IRSJonPizza | JON.NETWORK04/12/2019 We can do a discord vote Sevvy (not worried til 500sats)04/12/2019 needs to be wider than discord S1LVA | GetRavencoin.org04/12/2019 Discord is not enough, discord is not the community. Rikki RATTOE Sr. SEC Impresantor04/12/2019 For sure Sevvy (not worried til 500sats)04/12/2019 Yeah not by a long shot Synicide04/12/2019 I would at least like to hear an argument on why they shouldnt be. There have been several arguments on why they should be. Sevvy (not worried til 500sats)04/12/2019 twitter, telegram, etc pool operators Hans_Schmidt04/12/2019 It could cost a fee to make an asset restricted, and still only the original owner could do it. Issue first, then restrict. Chill04/12/2019 That's what I was going to say. I have yet to hear an argument that explains why the names should be overlapped Tron04/12/2019 @S1LVA | GetRavencoin.org I agree. If there's a way to survey the wider community, I think we should go with it. IRSJonPizza | JON.NETWORK04/12/2019 Well, i guess you can try to push it, let the miners decide Sevvy (not worried til 500sats)04/12/2019 The owner of !ASSET ought to have enduring, sole right to create $ASSET S1LVA | GetRavencoin.org04/12/2019 If anyone has the position that they can be made non unique by a seprate $ownership issuance, Please pm me and we can have a discussion on my youtube stream. Rikki RATTOE Sr. SEC Impresantor04/12/2019 @Tron once the voting layer has been activated, this will all be so much easier :yum: Sevvy (not worried til 500sats)04/12/2019 assuming an official vote token is produced But that would be kind of centralized Rikki RATTOE Sr. SEC Impresantor04/12/2019 Nothing is official of course Vincent04/12/2019 the needs to be a logical explanation on how it will be better for the coin to have them not connected Hardman (CEO - dipshit)04/12/2019 I normally never speak in development-meetings. But I agree with @S1LVA | GetRavencoin.org's opinion. >>Asset names being unique on chain, no matter the type, would be ideal.<< Rikki RATTOE Sr. SEC Impresantor04/12/2019 But it's better than having nothing for the devs to rely upon when deciding how the code is gonna be pushed out Hardman (CEO - dipshit)04/12/2019 And no I don't own any asset :) IRSJonPizza | JON.NETWORK04/12/2019 Assets being not unique = Fraud and confusion Hardman (CEO - dipshit)04/12/2019 It would in fact be in my personal benefit if it isn't going to be that way, to squat important names. Synicide04/12/2019 There have been many potential issues/confusion brought up with them not being unique. But no one understands the counter argument Tron04/12/2019 I don't have a dog in the hunt. If it is better for the project for $BCD and BCD to be treated as the same -- even though they're different textually and different types of tokens, then I'm ok with that. What I don't want, is to make a decision that has lasting repercussions for the project based on the voices of a few that may have a vested interest because they secured good names. [Dev-Happy] Blondfrogs04/12/2019 Don't worry, Tron is typing :smiley: Vincent04/12/2019 **jeopardy theme song* Tron04/12/2019 That's why I mention the "wider" community. S1LVA | GetRavencoin.org04/12/2019 Absolutely the route to take, gathering the opinions of the greater community. Vincent04/12/2019 can u give one good counter argument ? kott04/12/2019 so no counter argument ?! Rikki RATTOE Sr. SEC Impresantor04/12/2019 Agreed and this should only be the start of this conversation bhorn04/12/2019 >>from Tron: they're different textually and different types of tokens sounds like a counter Vincent04/12/2019 the only one i can think of is a new life on name squating which in no way helps the project Rikki RATTOE Sr. SEC Impresantor04/12/2019 I only bring this up because it seems 99% here prefer forever instead of a grace period. Makes me think it's worthy of discussing to the wider community Tron04/12/2019 For sure grace period. S1LVA | GetRavencoin.org04/12/2019 There no argument that it merits discussion Chill04/12/2019 any company will be forced to buy the !asset and $asset anyway Vincent04/12/2019 seems like a brexit vote.... revote until the correct vote is recieved Hardman (CEO - dipshit)04/12/2019 @Tron I agree, if this is going to have lasting repercussions for the project, and will only benefit a few, they should be separated. But then we should asses what the implications would be of doing it or not doing it. Are those known? bhorn04/12/2019 as a non-developer, it would be confusing to me if ASSETNAME and $ASSETNAME were not related Tron04/12/2019 If the wider community is for the non-restricted asset having precedent forever to get the token, then its easy to do. bhorn04/12/2019 hearing about name uniquness, but then those two not being unique, seems like a contradiction Hardman (CEO - dipshit)04/12/2019 I am all for what is best for the blockchain implementations that will come in the future. Tron04/12/2019 @bhorn But we can't enforce that. Only at first. $ASSETNAME could be sent to someone else. Hardman (CEO - dipshit)04/12/2019 They are unique because they are different asset types. IRSJonPizza | JON.NETWORK04/12/2019 Literally you garentee unique names, then you say nvm... It's like saying this crypto u made is capped at 2000 coins then you say nvm its 1000000 Hardman (CEO - dipshit)04/12/2019 From a code perspective its still unique. bhorn04/12/2019 but the unique names is for the user being able to trust the name Rikki RATTOE Sr. SEC Impresantor04/12/2019 I'd also add, one of the selling points of RVN over ERC-20 is the ability to only have one unique name ever bhorn04/12/2019 if you open up the $ASSETNAME to the non-original owner, now someone new can squat it Vincent04/12/2019 so there really hasn't been a good point yet bhorn04/12/2019 and it is no longer uniquely owned by the original issuer Rikki RATTOE Sr. SEC Impresantor04/12/2019 Statt getting into same name separate asset things and that starts to get confusing Sevvy (not worried til 500sats)04/12/2019 they are de facto unique Hardman (CEO - dipshit)04/12/2019 I think it would be good to have an overview of the benefits and downsides of both ways of implementation. Sevvy (not worried til 500sats)04/12/2019 @IRSJonPizza | JON.NETWORK I think you miscomprehend Vincent04/12/2019 thats not a good argument Hardman (CEO - dipshit)04/12/2019 Rn we're all kawwing into nothing. S1LVA | GetRavencoin.org04/12/2019 Giving the !Ownership token the power to reissue as $Ownership would make our Ownership tokens more valuable, overall. Tron04/12/2019 What if the system required purchase of the non-restricted asset first. If you want $GOOGLE, buy GOOGLE first. Chill04/12/2019 superb IRSJonPizza | JON.NETWORK04/12/2019 Yep Sevvy (not worried til 500sats)04/12/2019 ohhhhh NIce Tron S1LVA | GetRavencoin.org04/12/2019 Yes, you must own !Ownership Vincent04/12/2019 agree and will go back to building apple in ur garage yrs before needing restrictes asset Sevvy (not worried til 500sats)04/12/2019 that's what i've been saying Rikki RATTOE Sr. SEC Impresantor04/12/2019 Yessir Sevvy (not worried til 500sats)04/12/2019 The owner of !ASSET ought to have enduring, sole right to create $ASSET whosoever owns it may then create the $ASSET Rikki RATTOE Sr. SEC Impresantor04/12/2019 U got the ownership token, u got the name IRSJonPizza | JON.NETWORK04/12/2019 As soon as tron says it everyone agrees... Lol Vincent04/12/2019 yes, we all agree to that i believe Sevvy (not worried til 500sats)04/12/2019 That's what a lot of us were saying I think Hardman (CEO - dipshit)04/12/2019 I really would dislike it if it would have negative implications for rvn and that few moneyminds will benefit from it. [Dev-Happy] Blondfrogs04/12/2019 i think that could work. So GOOGLE! issues -> $GOOGLE? Chill04/12/2019 perfect Sevvy (not worried til 500sats)04/12/2019 I think some of us were phrasing it differently or conceiving of it differently because some of us are thinking from a user perspective and some are thinking from a developer perspective Rikki RATTOE Sr. SEC Impresantor04/12/2019 @[Dev-Happy] Blondfrogs Exactly S1LVA | GetRavencoin.org04/12/2019 @[Dev-Happy] Blondfrogs More specifically, !Google issues > $Google Sevvy (not worried til 500sats)04/12/2019 yeah exactly Chill04/12/2019 Then, if there is some sort of new token that is needed in the future, GOOGLE has already secured the rights to create that one as well Tron04/12/2019 The exclamation mark is at the end. Hans_Schmidt04/12/2019 That's exactly what I proposed earlier. Create or buy owner first. Then restrict for another fee. Sevvy (not worried til 500sats)04/12/2019 I always mess that up. putting the ! at the beginning Hardman (CEO - dipshit)04/12/2019 I know for a matter of fact multiple people own many assets in here. I want to remain neutral here. But you guys speak for your own interest, not for the project. IRSJonPizza | JON.NETWORK04/12/2019 How much should restricted fee be? Tron04/12/2019 Oh no, the price discussion. :wink: Sevvy (not worried til 500sats)04/12/2019 gotta go! run tron! Rikki RATTOE Sr. SEC Impresantor04/12/2019 @Hardman (CEO - dipshit) a community coin takes into consideration everyone's interest theking04/12/2019 @Tron that makes a lot of sense. Buy the non restricted first and only when you own that can you purchase or create a restricted. Vincent04/12/2019 i disagree @Hardman (CEO - dipshit) there hasnt been a good counter argument Synicide04/12/2019 sounds like a great solution, and fixes the !UNIQUE + $UNIQUE <> UNIQUE issue many have Tron04/12/2019 I'm becoming convinced on the asset name thing. [Dev-Happy] Blondfrogs04/12/2019 How much do you think is should cost to make a restricted asset guys/girls? Rikki RATTOE Sr. SEC Impresantor04/12/2019 I was thinking 750-1000 S1LVA | GetRavencoin.org04/12/2019 500RVN Gintonic (sold Honda)04/12/2019 Same as unique - 500 RavenLord 🐦04/12/2019 500 Vincent04/12/2019 i dont like the fixed cost discussion (old fight) Rikki RATTOE Sr. SEC Impresantor04/12/2019 Or maybe if u already own the !asset, just add another 250-500 to get it created Synicide04/12/2019 It needs to cost enough to where only people that need that functionality buy it IMO Chill04/12/2019 Since we do not know whether any future types of tokens will be needed (as the future is not set yet), giving one name control over that name in all current assets and future types of assets is a logical solution. It's a future-proof solution Hans_Schmidt04/12/2019 same as create new main asset RigbyMiner04/12/2019 restricted asset should cost 3-5 times that of a regular asset. Hardman (CEO - dipshit)04/12/2019 Then, if it costs money, why would YOU only be able to register it? Sevvy (not worried til 500sats)04/12/2019 100 for sub. 500 for main. 2500 for restricted? 5x 5x? Tron04/12/2019 (750+250+500+5000+500) / 5 Rikki RATTOE Sr. SEC Impresantor04/12/2019 IMO restricted assets add extra user tools to the OG assets so they should cost more than 500 to create Chill04/12/2019 The cost for the restricted token should be only commensurate with the cost to the network imo Vincent04/12/2019 when the coin is accepted by the masses, there will be plenty of burning no need for inflated (imo) nobody is gonna issue restricted, just because Rikki RATTOE Sr. SEC Impresantor04/12/2019 Plus I think the difference in cost should also promote usage of the OG asset when a user doesn't need the added functionality of a restricted asset Sevvy (not worried til 500sats)04/12/2019 if you think about it a restricted already costs more than a main, because it includes having already paid for the main Hans_Schmidt04/12/2019 Before we run out of time- What is the current eta for restricted/messaging mainnet release - How much time to security debug? Are there plans for another bug bounty program? Jeroz04/12/2019 What if I want only my guild members or game buyers to trade my coins or items or dragon kill points. Why should I pay more for an asset then? Rikki RATTOE Sr. SEC Impresantor04/12/2019 I'd like to thank everyone for attending the #governance-meeting today :joy::joy::joy: Gintonic (sold Honda)04/12/2019 Unpopular thought: Could we let the devs to discuss about other issues? Tron04/12/2019 We are going to have another wallet for Android that does BIP44 and handles assets. There will be a classic RVN only wallet, and an asset-aware wallet that is seed-compatible with iOS wallet. Coming soon. Testing it in the next few hours. traysi ★★★★★04/12/2019 The last wallet was not released as open source. Will the next one be? Vincent04/12/2019 wen wallet for my windows phone??? Jeroz04/12/2019 Quick before the end and while I’m walking to pick up my son: I'm not sure if I can make the meeting but wanted to show a list of things that are going on outside of the core development and things that I think deserve attention: - Ravenland made an OS for the PI, which significantly reduces the difficulty threshold of creating full nodes. https://ravencoinos.org/. I am still planning on helping @push | ravenland.org with some tools for it but very swamped with work lately (Sorry @push | ravenland.org!) - Mangofarm is very busy developing their web-wallet and asset management services. https://www.mangofarmassets.com/. There will be new features coming. - Mangofarm is in a far stage with Trezor integration and just finished their first transaction. - Mangofarm and Ravenland are busy setting up an IPFS swarm to make sure all RVN data will stay active. Reach out to them if you like to be a part of it. - I am in continuous talks with people/services interested in supporting RVN (I get mainly approached on telegram). And would like to mention once again that, imho, Raven could greatly benefit from a bounty system like: https://bounty.bitcoin.com/. Not only to 1 attract devs but also because 2 people don't know how to donate (yes I am getting the question), 3 current community funds are poorly managed, if at all, 4 there are coin services emerging where trading fees can be routed back to community projects and without going into details, I do talk to some. Tron04/12/2019 It is open source. Both will be. traysi ★★★★★04/12/2019 Current Android wallet is not on github. Tron04/12/2019 Super cool stuff from Ravenland and MangoFarm !!!! [Master] Roshii04/12/2019 https://github.com/RavenProject/ravenwallet-android GitHub RavenProject/ravenwallet-android Contribute to RavenProject/ravenwallet-android development by creating an account on GitHub. traysi ★★★★★04/12/2019 Latest commit 5134271 on Oct 4, 2018 Tron04/12/2019 Could we use the same people that did the legal fund to do a bounty fund? traysi ★★★★★04/12/2019 Is that the latest version @[Master] Roshii ? S1LVA | GetRavencoin.org04/12/2019 Bounty for what @Tron [Master] Roshii04/12/2019 Yes Tron04/12/2019 For the wallet for download. That will become RVN Wallet Classic. traysi ★★★★★04/12/2019 It seems some people are using an android wallet different than that one. DirkDiggler (RVN ded)04/12/2019 back to the discussion on the Restricted asset cost - it seems to me that it should be 5k +, as it's such a specialized use case (institutions)... KYC/AML shouldn't be cheap CPT d0JA04/12/2019 im all for bounties for things but they must be discussed upon and agreed in public space and i dont think its fair if certain people have access to that knowledge of bounties before they are posted to get a head start on the work and claim the bounty right after its posted my 2 pennies Tron04/12/2019 The PR in there is for asset support. We're testing this afternoon Vincent04/12/2019 @DirkDiggler (RVN ded) i think cheap, the more users the merrier IRSJonPizza | JON.NETWORK04/12/2019 Def needs to be real expensive... I dont wanna see a market for this Hardman (CEO - dipshit)04/12/2019 @CPT d0JA I agree with you. All should be done and agreed upon in public. Nothing in backrooms. Tron04/12/2019 So I have a "cheap" and a "real expensive". PERFECT! DirkDiggler (RVN ded)04/12/2019 consensus :) kott04/12/2019 must be expensive Vincent04/12/2019 we want RVN used...make it affordable for all bhorn04/12/2019 i'm with wider-use less expensive Tron04/12/2019 Two cheaps and two real expensive. Vincent04/12/2019 to be continued...... DirkDiggler (RVN ded)04/12/2019 these guys arent seeing the big picture of who would be using this type of asset cheap is a relative term CPT d0JA04/12/2019 so moving forward if people have some good ideas for bounties they should be posted in a public space and then discussed amongst the community, there should be no closed room discussions or people in power making the decisions on which bounties are posted, especially for things the coin doesnt need. Synicide04/12/2019 tags can be used for many use cases outside of KYC though, as Tron has used subscriptions as an example DirkDiggler (RVN ded)04/12/2019 as is expensive... Vincent04/12/2019 @Tronare u aware of any tokens, like vinsent, that will issue and burn a lot of coin just based on the use plan? Sevvy (not worried til 500sats)04/12/2019 unique assets, despite being only 5RVN could burn a lot of RVN theDopeMedic04/12/2019 What would that do to the burn if it's more expensive? Hardman (CEO - dipshit)04/12/2019 I think the choice should be made in a way that its good for the basis of the project, not for interest of a few, sounds harsh I know. What if new asset_types arise, will those owning the current asset always get a freecard to get it first? Wouldn't be fair. Vincent04/12/2019 agree DirkDiggler (RVN ded)04/12/2019 5000 ravens burned to KYC folks is a bargain... and it helps all us dipshit bag holders of RVN Vincent04/12/2019 if GM tokenized each vehicle...they would burn a lot annually bhorn04/12/2019 imagine years down the road, if price continues to increase Tron04/12/2019 I agree that the types of organizations that would use for SEC compliance are not going to worry whether it costs $5 or $100. But some subscription, games, vip groups, etc. may be more price sensitive. Vincent04/12/2019 why are u worrying about the cost of running other peoples business tho...it is about RVN acceptance CPT d0JA04/12/2019 increasing the burn rate has the negative affect of reducing the total number of assets that can be created on ravencoin bhorn04/12/2019 it could get to the point where its prohibitively expensive to use the chain Synicide04/12/2019 we don't want to price out that small guy wanting to run a subscription based platform though, we want as widespread usage as possible IRSJonPizza | JON.NETWORK04/12/2019 What jf we did something like this : The more charachers, the cheaper it gets Let the big corps pay alot on their 3 letters Vincent04/12/2019 overload IRSJonPizza | JON.NETWORK04/12/2019 Then small corps can pay less with their 5+ letter assers Tron04/12/2019 We do want usage (now). But we want the costs to reflect the real cost of chain usage so we don't mess up scaling. theDopeMedic04/12/2019 Assuming everyone who already owns an asset (19059) issues a restricted at 5k, then that burns 95,285,000 RVN. Not just that, it may be prohibitive to the small guy. liqdmetal04/12/2019 500 for original and 1500 for restricted (tohelp cover extra on chain burden) is my vote DirkDiggler (RVN ded)04/12/2019 cost of the restricted asset isn't a hill i am ready to die on... i just think it should be more costly than a standard asset Vincent04/12/2019 plus think of develping nations...their 'restricted' needs may be much different and expensive will have them lok for alternatives Tron04/12/2019 @liqdmetal I like that range. DirkDiggler (RVN ded)04/12/2019 1500 would be good in my book as well Synicide04/12/2019 I hadn't picked a number in mind, but I like that range too liqdmetal04/12/2019 so total cost for a restricted would be 500 + 1500 DirkDiggler (RVN ded)04/12/2019 2k all in? i like Vincent04/12/2019 500/500 IRSJonPizza | JON.NETWORK04/12/2019 Sounds good to me Tron04/12/2019 Everybody was all at 500/1500 until Vincent. WTH Vincent04/12/2019 haha Tron04/12/2019 Just kidding. kott04/12/2019 ignore him 500/1500 is perfect Vincent04/12/2019 i voted cheap first DirkDiggler (RVN ded)04/12/2019 there is always one in the crowd :) theDopeMedic04/12/2019 Is there are favorite horse with the @Core Developer s? Sevvy (not worried til 500sats)04/12/2019 roger that 𝕿𝖍𝖊 𝕯𝖔𝖓 𝕳𝖆𝖗𝖎𝖘𝖙𝖔 CEO ∞04/12/2019 wait, i didn't approve anything yet :stuck_out_tongue_winking_eye: S1LVA | GetRavencoin.org04/12/2019 I see 1500 being reasonable and scalable. Sevvy (not worried til 500sats)04/12/2019 2k all in for the ! and the $ A reasonable compromise Synicide04/12/2019 neither of them is bad when we keep in mind Restricted cost is the sum of both S1LVA | GetRavencoin.org04/12/2019 @theDopeMedic seabiscuit Sevvy (not worried til 500sats)04/12/2019 manowar [Master] Roshii04/12/2019 Yes there is are favorite horse with the Core Devs theDopeMedic04/12/2019 Tonto bhorn04/12/2019 i'm more agreeable to the higher price given that you need UNIQUE! to get $UNIQUE as well. Vincent04/12/2019 so we agree. table this decision :nerd: [Dev-Happy] Blondfrogs04/12/2019 I think we did some good discussion today. Lets call it. Tron04/12/2019 This was actually really productive. I like where we landed. Cheers, everyone. Rikki RATTOE Sr. SEC Impresantor04/12/2019 I'd be ok w 500/1500 [Dev-Happy] Blondfrogs04/12/2019 Can we close the channel @Moderator S1LVA | GetRavencoin.org04/12/2019 Thanks everyone. Gintonic (sold Honda)04/12/2019 Thanks Vincent04/12/2019 :thumbsup: DirkDiggler (RVN ded)04/12/2019 have a good weekend IRSJonPizza | JON.NETWORK04/12/2019 Byr theDopeMedic04/12/2019 Thanks everyone! :beers: S1LVA | GetRavencoin.org04/12/2019 Happy feet Seal Clubber04/12/2019 Oh no IRSJonPizza | JON.NETWORK04/12/2019 :bepbep:... I had to srry neil04/12/2019 Close! theDopeMedic04/12/2019 https://tenor.com/view/thanos-confused-gif-11877270 Sevvy (not worried til 500sats)04/12/2019 Thanks Tron Thanks Devs! Chill04/12/2019 I'm ok with 500/500 up to 500/1500 Seal Clubber04/12/2019 That would be 2k total right IRSJonPizza | JON.NETWORK04/12/2019 Quik mas Vincent04/12/2019 i dont plan on having any restricted assets but just think worldwide it will help the coin to keep it real user friendly traysi ★★★★★04/12/2019 @[Dev-Happy] Blondfrogs Try closing the channel Looks like that works. [Dev-Happy] Blondfrogs04/12/2019 Yep it did :smiley: i got permissions now :smiley:
A simple guide for the bitcoin millionaire who wants to (partially) cash out into private banks
Here is a list of sensible pieces of advice for whoever made it big in the cryptospace and is looking to cash out part of their gains in the traditional banking system. I compiled this list after helping a few bitcoin whales open their accounts in Private banks in Switzerland, and finding out it was much more difficult than I would have thought initially, despite my contacts and experience. First, just a quick intro about me. I manage the portfolio of a large multi-family office in Geneva Switzerland and invest the wealth of private clients in traditional markets (Equities, Fixed Income, and Gold mainly). I manage over $400m worth in diversified assets. I am 37. I consider myself very lucky because my hard work has paid off so far in my career, and because I love my job and my family life. So here we go:
The struggle with compliance officers is real.
Compliance officers are very distrustful when it comes to bitcoin and they go the extra mile to make everyone's life difficult. Things are moving slowly, but since bitcoin was used for fringe markets at the beginning (this business is now moving to monero), there is a natural suspicion around how the bitcoins were first acquired by the owner.
If you mined your bitcoins back in the days, you will have a hard time to prove it. So it really helps if your background is in IT, and you can argue that you were an early adopter simply based on your interest for the whitepaper.
If you bought your bitcoins and don't have a receipt, you are going to have difficulties. Compliance officers think it is easy to show a proof of payment, but anyone who actually bought bitcoin below the dollar back in 2010,2011, know it is almost impossible to provide. Of course there are solutions to this problem (pm if needed)
If you made your wealth daytrading, it might be easier, because you should have a record for your trades. However remember you will have to face people who do not know the crypto market at all. People who are not tech savyy and highly suspicious, so it is good to have someone who knows all about it, to help you defend your story.
Being introduced by a private banker or an established financial advisor helps a lot
When you are in the private banking business for years, (like me ;) and when you are regulated, you have built a trust relationship with the banks. It means that you have contacts, and behind each new client that you introduce, you put your name, reputation and credibility that you have built over the years. I have first hand experience of who the compliance teams are, which contacts should be activated and which banks have a softer attitude regarding bitcoins compared to others. If you approach banks directly, there is a high chance you will be rejected. Banks call it a "walk-in", and they literally hate it as it raises red flags on so many levels. Not only it is depressing to go from banks to banks and be rejected, but it is also very time consuming. Some banks are kind enough to say no upfront. Some others will have you come to their premises to avoid cross-borders issues, fill a mountain of papers to open the account, then your case will be assessed in front of the compliance department committee for account opening, without a guarantee that it will be accepted. Maybe you will get a "no" 3 weeks later, and have to start from scratch again with another bank.
Being tax compliant is a must.
Gone are the days when Swiss banks would open accounts for non-tax compliant individuals. Just simply forget it, it won't work. It does not mean that there are no solutions. Legal loopholes such as Monaco residency, or Swiss lump-sum taxation ("forfait tax") of resident aliens do exist, even though I am not going to talk about it in this thread and it applies only to non-US person. Some countries like Switzerland have a century-old track record of protecting private property, and no capital gain on stocks or bitcoins. If you are a US citizen, either abandon your citizenship if you can or pay your taxes. IRS has its hand everywhere and you cannot game the system. I can't say too much about that in this thread, so pm me for more details. I can just say that people who live more than 183 days in the US are considered US persons, even if they are not US citizen, and the same FATCA headaches apply to them. edit- Since many people ask in pm: I have lived through the Falciani list and the Panama papers. I have seen people refusing to be tax compliant and changing banks every couple of years in always further exotic places. It is a pain. Don't be that guy for your own sake. Fiscal harmonization is at work worldwide, and there is little you can do to fight this trend. If you are big, use the legal loopholes mentioned above.
Choose your advisor wisely
Private bankers are just salesmen at the end of the day. They are salaried by the banks. They depends on compliance officers to approve their new clients. They have year-end objectives as regards to how much new money they will bring to the bank, and many bankers do not manage your assets directly (it is outsourced to another department inside the bank). Their goal is to maximize the banks' profits, not yours. However, a regulated external asset manager is independent and will work his ass for you. If the performance is not good some year, the client is unhappy. 2 years in a row of bad performance and the client is gone. Make sure your financial advisor is regulated, that he is humble and his lifestyle is in control. Make sure he has a family to sustain, or a mortgage to pay because you know he will be dedicated to you. Eventually, make sure he does not have a power of attorney on your account, just an advisory or a discretionary mandate. For your custodian bank, discuss with him, and go for a sound bank. You do not want to be deposited at DB during the next economic downturn. Pick an advisor who understand your lifestyle. Can someone who has never invested in bitcoin really understand your libertarian mindset, your passions, or your life goals ? Don't chose a veteran banker, who doesn't really care about you and will retire in 2 years. Pick someone you can trust, has a lot of motivation, experience, and who may look after you and your finances for the coming years.
One of the biggest mistake new clients do, is being way off in terms of negotiating the fees. Some are just happy to have an account opened, only to realize after a year or so that they gets slaughtered on every trade. Some are just outright paranoid and want the cheapest fees and they forget that quality has a price. So let me explain. There are 3 ways an asset manager gets paid in this business: Management fee, performance fee, small rebates paid by the banks on every transactions. You have to find a balance between the 3 sources of revenue, so that you have a nice deal, and the portfolio manager is happy too. At the end of the day everyone has to pay its bills. Performance in this business can never be guaranteed, (escape whenever someone promise yearly performances that aren't realistic), and you cannot expect an asset manager to live on performance fee alone. 1. Performance fee alone = the asset manager might take too much risk on your portfolio to pay for himself 2. Rebates alone = the asset manager might overtrade your portfolio to pay himself or buy inefficient product to cash in more commissions. 3. Management fee alone = lack of incentive for the asset manager to look at your portfolio, except if the mgt fee is decent.
tldr; opening a bank account in a private bank and partially cashing out is not as simple as you might think. It is easier if you are taken care of by a professional. It's definitely not the end of the process, rather the beginning. Some clients stay seriously invested in crypto, even with an account in a Swiss Private bank. I know you hate Fiat. I do not like Fiat either, but at the end of the day, a bank account is convenient, especially if you don't have to deal with all the crap you have gone through in retail banking.
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