Connect with us

#Blockchain

Cryptokitties: A Giant Pyramid Scheme?

Published

on

Where Cryptokitties proves to be a tool for fraud is in the way the expensive Ethers are used for the purchase of non-existent, virtual cats.

The world of cryptocurrencies expanded into lighter fun genres using the core dAPP or decentralized App functionalities. One such category is CryptoKitties. However, it turns out that for a fun game, these virtual assets (cats) trading game invented by blockchain-ist –Axiom Zen, works similar to fiat-currency Ponzi schemes.

 

What are CryptoKitties?

CryptoKitties are a non-fungible token (NFT) over the Ethereum platform. CryptoKitties uses smart contract, to issue tokens to buyers/users. The rate is approximately 15 minutes in a year, which generates 672 such items or assets and given an ERC-721 token and is non-fungible. Therefore, every asset is able to have attributes which are unique to it.

Thus, the number of kitties in circulation is limited to 4 billion cats in total. The smart contract will include the phenotype-specific visual appearance and two the genotype- or the genetic features which are not open to edits or changes.

Since every cat is a token, the blockchain technology is deployed to sell, transfer and guarantee ownership. Prices of these Kitties are set in Ether (ETH) and can be auctioned by owners.

 

What is the game about?

Every virtual asset is owned uniquely by a single user/buyer and is validated via the blockchain network it nestles on. The value of such virtual asset shall depreciate or appreciate in accordance with kitties-market forces. Single each of these ‘digitized’ assets is unique and unduplicated, it cannot be co-owned or transferred without even the developers seeking the owner’s permission.

Hence owners can use their asset for buying, selling and even breed these assets and christen them with unique numbers, distinct genetics, DNA and other attributes. All contributions are considered in ETH.

 

Why is CryptoKitties interpreted as a pyramid scheme?

As one of the first blockchain-based applications developed for recreational use, CryptoKitties appeared to be a fun way to demonstrate the use and adaptability of the technology.

However, where it proves to be a tool for fraud is in the way the expensive Ethers are used for the purchase of non-existent, virtual cats. Real money or ETH is being put into the system, with the ambitious hope that the next level of the buyer of these assets will feed the higher level investors who initially bought into the system and bought these cat-assets.

The result is that, when there are no new recruits or buyers of these kitties, the pyramid will collapse. At the apex level of the pyramid are the initial or founder-buyers who used up several of their ETH in the hope that there will be a new level of buyers who will purchase the kitties from them since every kittie is unique to a single user or wallet. The second-level buyer purchases from the apex-buyer in the hope that a new level will repeat the process and he gets not only to sell the virtual asset but also make profits by creating a pump and auctioning it.

Hence, there are several parallels to the way CryptoKitties operate to how fiat-currency pyramid schemes operate, thereby inferring that the former are ill-intentioned scams!

 

The following article showcases the thoughts and view of the writer and does not encourage the readers and viewers to make any investment decisions related to any company or project. The readers should do their own due diligence before making any investments or actions. Coinnounce is not responsible directly or indirectly for any damage or loss in connection with any company or project mentioned in the article.

#Blockchain

Forbes releases top 50 blockchain companies list

Published

on

Forbes has released top 50 blockchain companies using blockchain technology list and these are almost all household names of the world's largest companies.

Forbes has released a new top 50 blockchain companies using blockchain technology list and these are almost all household names of the world’s largest companies. In fact, they are all billion dollar plus companies such as Amazon, Citi Group, Foxconn, Comcast and a whole host of others and unsurprisingly the bulk majority of these companies are using Ethereum.

 

Although, outside of Ethereum which is, of course, the number 1 blockchain for these companies, we do see others like Hyperledger and Quorum for example, although much rarer on the list in terms of mentions are blockchains such as Stellar Lumens or Cardano. Blockchains such as TRON, EOS, NEM, and others are not mentioned in the list of top 50 companies.

 

Companies choosing Ethereum according to Forbes:

Big businesses really like what Ethereum is doing. Ethereum has also worked very hard to make these relationships happen over the last few years and those relationships are now paying dividends big time.

 

All the top 10 companies are located in China or the United States.

The Top 10 (Forbes List):

10. Ping An Insurance Company: China

9. Bank of China: China

8. Apple: United States

7. Wells Fargo & Company: United States

6. Bank of America: United States

5. Agricultural Bank of China: China

4. Berkshire Hathaway Inc: United States

3. JPMorgan Chase & Co: United States

2. China Construction Bank Corporation: China

1. Industrial and Commercial Bank of China: China

 

Continue Reading

#Blockchain

JPMorgan expanding itself into the blockchain and crypto space

Published

on

JPMorgan Chase has been posting a lot of job opportunities in the blockchain and cryptocurrency industry on Indeed.com, the job listing portal.

JPMorgan Chase, the American multinational investment bank and financial services company has been posting a lot of job opportunities in the blockchain and cryptocurrency industry on Indeed.com, a job listing site. According to the data from Indeed.com, the overall job openings for the cryptocurrency industry also seems to be on a rise.

 

JPMorgan Entering the Cryptocurrency Space:

Though the CEO of JPMorgan, Jamie Dimon has always been a strong opponent of Bitcoin and other cryptocurrencies, his company has been interestingly expanding its operations in the field of blockchain and cryptocurrency.

 

Last month, JPMorgan launched its own cryptocurrency known as the JPM Coin, which will serve the bank’s precious customers in order to make transactions between them more swift and steady.

 

Back in 2018, JPMorgan had launched a blockchain powered platform known as Quorum which might be seen quite homogeneous to bitcoin and ethereum, however, it is almost fully centralized in nature.

 

Large companies entering the Blockchain Space:

In recent times, a lot of huge companies worldwide have been entering into the blockchain and cryptocurrency space. According to a recent publication by the Forbes, large organizations such as IBM, Deloitte, Cisco, Microsoft, Consensus, and others have been curiously hiring employees that are experts in the field of blockchain technology.

Continue Reading

#Blockchain

Adoption: Courts in France adopt blockchain technology

Published

on

The NCC or National Council of Clerks of France have finally tested a blockchain technology-based solution for the courts of the country.

The NCC or National Council of Clerks of France recently made an announcement that they have finally tested a blockchain technology-based solution for the courts and are now prepared to launch it throughout France. The National Council of Clerks is a representation of the clerks of the corporate and commercial registry in around a hundred thirty-hour workplaces in France. The workplaces depend upon one another for sharing important data.

 

The goal of NCC France

The NCC is determined to streamline and position the latest information technology that capitulates something that is known as ‘the single version of the truth’. The data tracks an organization’s growth, dissolution, change of location etc. The sharing of data amongst each other was earlier a big challenge for the NCC.

 

The project based on blockchain technology had an aim of rapid cycle times and precision of information. In the pilot phase of the project, the National Council of Clerks in France was able to lessen the timing of registry operation involving a lot of days to just one day.

 

According to the president of France National Council of Clerks, Sophie Jonval, the project based on blockchain technology is an outcome of the partnership with IBM. IBM who is already an expert in blockchain technology and cryptography has been serving as a technological partner.

 

According to the NCC, the project shall be rolled out in the 1st half of 2019 and the project shall ensure a transparent and improved dynamics of the interactions between the clerks.

Continue Reading

Keep up with Bitcoin & Blockchain Technology Trends

Simply enter your email address in the box below and sign up for emails from Coinnounce regarding trending cryptocurrency, bitcoin & blockchain topics and offers.

This information will never be shared with third parties.