HOW CRYPTOCURRENCY PROJECTS ARE TACKLING TRANSPARENCY AND SECURITY PROBLEMS

Cryptocurrencies are the new age foundation of growing economy. It is a form of digital asset that is designed to work as a medium of exchange that uses strong cryptography to ensure security to financial transactions, controls the creation of additional units, and verifies the transfer of assets.

Cryptocurrencies are emerging in to the mainstream market and is being widely used by all kinds of public. However, even the new age currency has its own problems to deal with.

It has a decentralized nature and the prices are unregulated. The not enough complete knowledge regarding cryptocurrencies makes it all the more doubtful for investors to invest in.

But in recent times measures have been taken to come up against the problems involving cryptocurrencies, especially regarding transparency and security. 

TRANSPARENCY:

Transparency is one of the major factors that drives the use of distributed ledger based applications, like blockchain, such as cryptocurrencies. Cryptocurrencies provide a sense of anonymity to its users. Users can make transactions with one another without any information related to their identity being disclosed. However, even with the presence of this kind of privacy setting cryptocurrencies provide enough transparency to make it trust worthy. 

All transactions conducted are recorded in a permanent public ledger (blockchain). After the cryptocurrencies are moved from their initial address to the address where the transaction is made, the entire financial movement can be traced. Blockchain ledgers are searchable and, hence, can be used to track transactions. It provides open viewing regarding where all the participants keep their holdings and make transaction at each public address which is anonymized behind a transaction hash.

However, investors have still expressed their scepticism regarding the transparency provided by cryptocurrencies.

This was tackled in the year 2017. The launch of Digital Currency Index helped ease the situation up. The Digital Currency Index is the first known, widely accepted market index that keeps a track of the cryptocurrency industry. It tracks the marketplace value of cryptocurrencies based on their variety of use- quality-wise as well as quantity-wise. It also provides insights and analysis in the market. 

There are other areas that cryptocurrency projects are trying to solve related to transparency problems. One of them is the proof of solvency. It is important to measure the success and failure of cryptocurrencies. The proof of solvency helps build the foundation of trust. It is because investors would want to be aware of the risks they are taking with a specific finance related matter that they are investing their funds in to. However, most transactions don’t prefer to disclose the financial details of their internal operations openly, which is one of the issues to be tackled. However, some cryptocurrencies, for instance, Bitcoins offer complete proof of solvency, which in turn makes them one of the most preferred cryptocurrency even after being slightly pricey than the others.

SECURITY:

The security concerns regarding cryptocurrencies are being tackled by the non involvement of a centralized system. Cryptocurrencies work based on a decentralized system which means that no banks or authority or government institutions are involved in it. This makes the transactions a lot faster than the traditional methods. Cryptocurrencies aim to protect the identity of the user, using cryptographic encryptions. The present cryptocurrency projects are striving to completely remove centralised exchanges. The projects are expected to remove the concept of custody from these exchanges, altogether. This is because Exchange custody is a straightforward security threat that tampers and makes it unreliable for both new and old investors to cultivate their trust.

The exchange concept that includes Peer-to-Peer networking solidifies the trust one can put in the cryptocurrency company. This eradicates the threat of breach in one’s privacy. A notable example would be thee project undertaken by Atomic Wallet- a cryptocurrency wallet that focuses on deploying a technology called Atomic Swaps. Atomic swaps enable users to exchange assets without the involvement of third-party custodians or a middleman ever taking control. This process is entirely based on Peer-to-Peer concept and supports cross-chain swaps- where you can use bitcoins and ripples and forms of cryptocurrency. This also broadens the horizon in the world of cryptocurrencies. 

There are some projects that bypass custody altogether by both users or exchanges. Morpher being a virtual trading platform where users speculate on the market of the underlying asset via Ethereum smart contracts, is an example. Smart contracts mints and burns the Morpher token based on the performance of the underlying asset represented by the contract. Therefore, there is no fees and there is theoretically limitless liquidity for any type of market- as because the Morpher token can “morph” into any type of asset.

 

Keeping in mind the problems and the efforts put into correcting the cryptocurrencies further more just proves the point that it is here to stay in the market for another very long time. Cryptocurrencies now strive to make transparency and security regarding one’s privacy coexist, which would only enhance its features more and more and sooner or later become the game changer in the world of currencies.

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Best Ethereum future mining pool

If you are new to the cryptocurrencies and blockchain world you can be unfamiliar with the whole idea of this market. So what exactly are mining pools? These are the platforms where the miners come together to mine Ethereum. Basically when you join a pool you tend to lower the volatility of the payouts. This is done by providing frequent payment instead of a lump sum. This combined the harsh power of several miners to reduce the variances. Ethereum mining is pretty similar to Bitcoin. Using your system you guess the answer of a puzzle quickly for every transaction blocked until the correct answer is found. This means that a pool helps you to get more frequent periods rather than only getting paid when you solve an Ether block. The miners who find hashes matching the target receive Ether. Then this is broadcasted across the block network. Its node validates the block. Then it is added to its copy of the blockchain ledger. There are top 5 Ethereum mining pools.

The first one is ETHpool. This is probably one of the best web based Ethereum mining pools. It comes with DDos protection that offers a global mining network. It supports pools like eth-proxy, Ethminer, qtMiner and Cudaminer. This has proved to be an effective and efficient mining with its unique payout scheme so that it takes care of the transaction fee which makes it a free of cost Ethereum mining pool. You can also monitor the Ethereum mining starts.

Next we have Ethermine. It has almost similar features as ETHpool. The best part about this is that it lets you have a customizable minimum payment threshold. It has the PPLNS out scheme. It takes care of the harsh rate on a daily basis and takes care of the transaction cost as well. This way you don’t have to worry about the block. It operates on a DDvs protected server and has an IOS and Android smartphone app to keep you updated with the accounts staffs. It is probably one of the fastest Ethereum miners as well.

The third one on our list is Nanopool. This is also a very popular web based Ethereum mining pool. The special fact about this is that you can mine other cryptocurrencies other than Ethereum as well. It was a low cost transaction and is based in China. The first thing you need to do is install claymore Dualminer. It has a user friendly setup which is very easy to use.

Just like Nanopool, Dwarfpool is another platform which can be used to mine other crypto currencies such as Zcash other than Ethereum. It is an optimized stratum which features an auto payment feature which sends the miner the payment once an hour pool engine. It has the most profitable round base payment system or RBPS.  Also there is no transaction or hidden fees involved as it has a powerful server located all across the world.

Lastly we have Mining Pool Hub. What was started by a dedicated group of Ethereum enthusiasts has now turned into the second largest global pool. Based on the rewards of the block finding fee, transaction fee and some added incentives the charges are calculated. It has a mining fee of around 0.9%. There is no need to worry about backup as the server is redundant irrespective of the location. You can mine multiple tokens of the same algorithm with the algorithm switching feature. However this platform may be a bit tricky for beginners. It aims at professional miners. On an average there is 12 seconds to mine Ethereum. All you need is an ETH wallet and a mining pool and you are all set to get started.

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Best Altcoin Swaps Sites

In the last decade, many new types of cryptocurrencies have entered the digital market. So, investing in just one crypto is no longer the only option available. You may want to invest somewhere else, so wouldn’t it be amazing if you could convert one altcoin to another? Not by the old, boring method of creating a  new account for exchange and placing an order, but by a quicker, safer and reliable method? 

Good news, it’s possible! To save your time and energy there are multiple crypto swapping platforms out there which perform the task of exchanging  coins for you. Few of them are as follows-

Coinswitch 

One of the best as well as unique swappers in cryptocurrency world. Users can convert Bitcoins along with hundred other altcoins.  You are allowed to do it anonymously with the best and the most feasible rates. You’ll definitely like it’s user-friendly interface which is also very intuitive as it offers a vast range of crypto pairs. It supports many cryptocurrencies like BTC,  ADA, DASH, ETC etc. 

Shapeshift 

Shapeshift is an crypto swapper which offers a different exchange rate for each coin that changes every 30 seconds based on the current  market conditions. Typically , the miner fee charged by it revolves closely around 0.5%. Shapeshit can exchange cryptocurrencies in 29 categories which include crypto giant BTC, BCH and DAI. Other than that, it also possesses one of the finest interfaces in the digital market. 

Swapy

Swapy offers a good exchange rate without the need to place buy/sell orders manually. It  combines over 10 exchanges to give users more low-cap and low liquidity tokens at current price. Currently, you can swap BTC, ETH and USDT into over 70 different tokens, from XEM and REM to BCH and DASH. You can track all the exchange that takes place in your wallet. If you register yourself, you can get maximum discount. 

Changelly

Founded in 2015, Changelly is one of the well known platforms,  which has a fixed-rate mechanism to protect users from the risk of market values variations during the moments when the tokens are being swapped. Changelly supports over 150 cryptocurrencies and charges only 0.25% for all swaps invariably. To avail this, you have to create an email account but then creating one is less time consuming. Changelly has a partnership with Simpex which allows credit card purchases of cryptocurrency. Recently, the platform launched its own app for iOS. It already had a pre-existing one for Android but also improvised a second edition.  

Binance

You need an email address with which you are supposed to register to the site. As a token of welcome to every new user, Binance will give you 1QTUM, which is it’s currency. Binance also offers a Community coin on a monthly basis. It has customer services in more than one language. The mobile apps for Binance is available for both Android and iOS. Surprisingly, it provides one of the lowest transaction fees compared to most sites- 0.1% 

Flyp.me

Flyp.me is a  user- friendly and private swapping site which doesn’t require you to register in the website, unlike most other options available. It saves you from the troubles of KYC process. Flyp.me converts almost 30 cryptocurrencies which include BTC, LTC, DAsH and many other altcoins. You can have full privacy along with a little control over the rate of exchange. On clicking the “Flyp now” option, the rate remains constant for some moment. It is a reliable converter which checks the market rates of cryptocurrency. They take 0.5%  as exchange rate mostly. 

Any of the above mentioned swapping sites will be very helpful to have your cryptos converted, if you ask me! Regardless of that, as a responsible customer it’s your duty to check the rate of exchange rate offered by the sites once again before swapping, just to be sure which site helps you save the most!

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7 THINGS YOU SHOULD KNOW ABOUT CRYPTO CURRENCY TAXES

With the heated discussion about crypto currency and block chain lately, the topic of taxes and financial impact has perked up. The crypto currency continues to gain traction in everyday life. However, there is still no solid guidance and adequate advice for tax professionals. With different theorize, here are seven things you should know about crypto currency tax.

1) The two tax forms. Majority investors in crypto currency are investor themselves.  To report on digital trades, they use Sales and Other Dispositions of Capital Assets Form 8949. They describe the assets they’ve traded along with the dates they acquired and sold it. They also include things such as the cost of doing the trade, how much they made, and their net gain or loss. Other than that, the form is also distinguished in short-term and long-term capital gains and losses.  The second form concerns crypto trades is Form 1040 Schedule D.  This has short-term and long-term gains and loss with the going off information from Form 8949.

2) As the IRS confirmed, value of $600 or more done through virtual payment, which includes wages, annuities, rent, salaries, and compensation, it must be reported to the IRS. If there are no independent contractors, it must be reported on Form 1099-MISC by using the fair market value on the date of payment.

 

3) Crypto currency can also be subjected to income tax. This is for the miners who are paid through bitcoins for their work which makes it eligible for income tax. Mining also can be qualified for self- employment which also requires self employed tax.

 

4) All crypto currency sales and trades are taxable. You have to report all your gains and losses on your trades to the IRS. If you are exchanging a crypto currency for another one is also taxable. This includes converting it back to USD or spending crypto currency. 

 

5) The IRS is more focused on keeping tabs on every trade. It was reported that over $20,000 was traded without proper taxation. If you try to avoid crypto currency tax or indulge in other forms of fraud, you can be sentenced to a maximum sentence of five years in prison or a maximum fine of $250,000. If you are not filing for crypto currency taxes, the IRS is sure to keep a very sever watch on your activities. 

 

6)  The crypto currency tokens are potentially tax free. With the upgraded crypto currency guidance by IRS a lot has changed in crypto currency space. The crypto currency that represents a service or asset and not a currency do not come under federal law tax. This it is a virtual currency that has equivalent value in real currency or act as a substitute for real currency. However, it is best to consult a qualified and certified accountant or lawyer before making any decisions regarding what you choose to include or exclude from the crypto currency taxes.

 

7) Paying taxes for crypto currency is like paying any other type of capital gains or income tax. However, there is one major difference. It is up to the investors to compile the information themselves. This needs planning and recording over thousands of data. You need to determine if you are a trader, employee or a crypto currency miner first. 

 

As for now, the finer details of the crypto currency tax are not known. Many of IRS’s stands on certain status are not unclear. However, it can be assured that sooner or later, like most tax related issues, it will become more clear and simple for the public to understand.