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Bitcoin PoW is Fowl says crypto techie: PoA is how it should work

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Gerald Fenech claimed in his Forbes article that the Principle deployed in bitcoin PoW did not hold out technically and was in its real sense a ‘flaw.’

Throwing up the challenge and facing up to the large bitcoin community was Gerald Fenech when he claimed in his Forbes article that the Principle deployed in bitcoin PoW did not hold out technically and was in its real sense a ‘flaw.’

The world of cryptocurrency is actually a complex network of technical processes which evolve to deliver solutions which are steeped in concepts such as immutability, transparency and decentralized distribution of ledgers. Hence, time and again there are deeply technical aspects which are debated amongst the community members to offer alternative solutions which could be technical better feasible or take the platform forward to a different level.

One such technical debate is PoW (Proof of Work) vs. PoA (Proof of Authority).

 

Historical Background to bitcoin

It is time for investors and the bitcoin community to identify that at the time of the launch of this super-power crypto coin in 2009 by Satoshi Nakamoto the intent was to offer as a reward the first ‘transaction’ evaluator on the block. Thus the concept followed was Proof of Work. There is a school of thought among bitcoin purists that this was a concept which was originally developed back in 1977 by Adam Back’s and simply known as Hashcash.

The current argument is that the use of PoW is only  a documentation of ‘challenges’ which eventually will be fatal. The particular perception of fatal in this case is that the process of validating blocks on the principle of PoW consumes high quantities of computing power, energy and is also environmentally harmful, due to the mining process. It is very similar to the carbon footprints created by the data storage industry where servers guzzling massive power are cooled down using water and other alternatives.

Hence, Fenech argues that the issue before PoW currency mining is that there are high investments required in terms of the hardware as well as the operating processes requiring large areas or real estate apart from the infrastructure itself being proofed for disaster and risk management in bigger mining centers. The formation of these pooled resources at the mining farms reveals that there is centralization of resources.

 

PoA is the alternative

Fenech argues, in this poorly reasoned presentation that PoA is a better solution in such centralized mining and coin production centers. He suggests that PoA becomes the protocol which will ensure that “A validator has to be personally identified and verified on the platform, making them a trusted node. Users who confirm their identity earn the right to validate blocks on the chain. The crypto rewards they receive are public, as are malicious actions undertaken; this means that individuals have their personal reputation at stake when acting to secure the network.”

However, critics are quick to point out that PoA is limited in its approach as it does not focus on computational power, during the process of mining for the cryptocurrency.

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Bitcoin is Halal? Will crypto rise with mass Muslim adoption?

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Many Islamic Scholars are discussing the real nature of cryptocurrencies with some of them calling it a 'HARAM' while others calling it a 'HALAL'.

Erol Yarar, the chairman of the international business forum has suggested all Islamic nations to adopt the cryptocurrency system for transactions with each other rather than adopting the US Dollar as according to him the US Dollar is used as a weapon by the United States to wreak economic havoc.

 

Calling US Dollar a ‘Punishing Tool’

Yarar expressed his concerns by stating that the US dollar is used by the United States Government to punish a specific country that the United States is not willing to be in peace with. He also stated that the United States Government uses the US Dollar to lower down the money transactions, for imposing sanctions and for making nations bowing down in front of the United States.

 

Yarar said that the US Dollar is not just a common currency but also a sanctioning tool. Also saying that at the International Business Forum this year, they will discuss the term monetary pluralism for implementing a democratic trading environment and the top features to be discussed at the next International Business Forum meeting would be the usage of Blockchain Technology and Cryptocurrency for the financial sector in the Muslim countries especially the middle east.

 

Yarar said:

“We will make a cryptocurrency system, that will be used for international trade among Islamic countries, a current issue.”

 

Bitcoin Halal?

Many Islamic Scholars are discussing the real nature of cryptocurrencies with some of them calling it a ‘HARAM SYSTEM’ or ‘ILLEGAL SYSTEM’ while others calling it a ‘HALAL SYSTEM’ or ‘LEGAL SYSTEM’ according to the Islamic principals with some Mosques such as the Shacklewell Lane Mosque in London have also started to accept cryptocurrencies as donations.

 

What do you think about bitcoin and other cryptocurrencies being termed as Halal? Tell us in the comments section below.

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Bitcoin ETF: Worlds first Cryptocurrency ETF approved

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ETF: The world's first Cryptocurrency ETF has been approved by the Switzerland authorities which will start trading on SIX, 4th largest exchange in whole Europe.

The world’s first Cryptocurrency ETF has been approved by the Switzerland authorities which will start trading on SIX, the 4th largest exchange in whole Europe which has a market capitalization of over $1.6 trillion.

 

ETF offered by Amun AG

Amun AG, a cryptocurrency startup is offering the fund that will allow the institutional investors to invest in the major cryptocurrencies such as bitcoin, ethereum, ripple, litecoin, and bitcoin cash.

Hany Rashwan, the CEO and Co-founder of the company said that the following ETP will provide an opportunity to the institutional investors that are restricted to investing in just securities and also give the same opportunity to retail investors that are unable to access cryptocurrency exchanges to due regulatory pressure. The CEO also said that before choosing Switzerland, the company had explored 23 other destinations around the world but found Swiss the most suitable.

 

The ETF will allow investors in buying the market and investing in crypto market as a whole. When investors will be investing in a fund, an amount equal to their purchase value will be held on their behalf by the custodian.

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Bitcoin Cash BCH Hash Wars: Who is winning?

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The Bitcoin Cash hash war is still on with close to 300 blocks mined on the BCHABC side using the new ruleset, which has also given the BCH network the most accumulated proof of work. Cryptocompare has given the BCH ticker to BCHABC chain followed by Bittrex also appointing the ABC chain with the BCH ticker. The ABC chain has gained more support and also mined more blocks since the split of the BCH chain into BCHABC and BCHSV. The SV chain has performed less work till now.

 

Faketoshi “Satoshi’s Shotgun”

Craig Wright had earlier threatened that he will destroy the BCH ABC chain by mining empty blocks using his huge hash power, which is being called “Satoshi’s Shotgun”. BCH ABC has apparently survived the Shotgun. Peter Rizun from Bitcoin Unlimited said:

“The difference in network effect stark: BSV has few users, no OSX or Windows clients, no block explorer, perhaps one mobile wallet, and a shotgun that doesn’t shoot so straight,”

According to cash.coin.dance, BCH ABC is currently 51.9% ahead on proof of work and is 15 blocks ahead, meaning miners will to secure the BCH ABC side and that exchanges ca resume deposits and get everything back to normal. Many supports believe that the ABC side has already won the battle.
Bittrex has listed the ABC chain as BCH and the SV chain as BSV.

While many BCH supports are claiming that the war is over and the ABC side is close to winning it, SV supporters still believe that the hash war will continue for weeks and Craig Wright continues to claim that he will destroy the ABC chain by mining empty blocks.

What do you think about the hash war? Comment below

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