Blockchain News Issue.9

moac.io

Published in

MOAC

8 min readAug 2, 2018

I. Commentary of the Week

American regulators reveal: Bitcoin’s ETF “is almost certainly” going to be approved

The American Chamber of Commerce has urged the Securities Exchange Commission (SEC) and the CFTC to release clear cryptocurrency regulations. The Chamber hopes the SEC will continue to research ICOs to determine whether they will be able to become an effective fundraising method while simultaneously protecting investors and obeying the law. It also hopes that the CFTC will research how cryptocurrencies will operate in the futures and commodities market.

Comment:

All nations have to start in the same place concerning cryptocurrencies yet will be in different places financially. Although cryptocurrencies are still new, America has naturally accepted the role of speaking on behalf of regulating cryptocurrencies. Will blockchain technology and finances be a chance for other countries to catch up, or is it only a game for the strong?

Ⅱ.Policy Trends

1.International

(1) America: The SEC and CFTC are urged to publish clear cryptocurrency regulations

July 23: The American Chamber of Commerce has urged the Securities Exchange Commission (SEC) and the CFTC to release clear cryptocurrency regulations. The Chamber hopes the SEC will continue to research ICOs to determine whether they will be able to become an effective fundraising method while simultaneously protecting investors and obeying the law. It also hopes that the CFTC will research how cryptocurrencies will operate in the futures and commodities market.

(2) America: Former chairman of the CFTC: Only regulation will make Bitcoin’s bullish price settle.

July 24: Gary Gensler, former chairman of the CFTC, stated in an interview with the Wall Street Journal that he grows more interested in research concerning Bitcoin and blockchain technology every day. He is also aware of the potential risks despite his positive outlook on blockchain technology and cryptocurrency. Gensler believes that the SEC and CFTC can work together to supervise and search for potential blockchain-related fraud. This phase extremely important, because blockchain reduces costs and risks to a great scale and enjoys the stability that public interest provides.

(3) America: A poll among the SEC reveals that most members will approve ETF.

July 24: Results from a poll already conducted this summer by the SEC relating to Bitcoin’s ETF are mostly positive. Supporters of the proposal to change the ruling believe that Bitcoin’s ETF makes the cryptocurrency market safer for investors and makes it an exchange worthier of trust. And if Bitcoin’s ETF obtains approval, then the blockchain company Cboe and SolidX will also be permitted to issue regulated Bitcoin ETFs.

Ⅲ.Industry Trends

1. International

（1）Google: Digital Asset and Google Cloud are working together to develop a blockchain application architect service.

July 23: The Blockchain Company Digital Asset has announced its cooperation with Google Cloud with the aim of developing blockchain application architect tools services. Google Cloud participated in the beta test version. Digital Asset plans on developing the DAML platform and service (PaaS) and launching a “fully hosted solution” which will be provided through Google Cloud. Leonard Law, director of the Google Cloud Finance Service Platform, stated that Google Cloud hopes to “innovate” with digital assets.

（2） America: American ICO financing is catching up to IPO’s

July 24: According to a recent report by Forbes, the new ICO financing method is catching up to traditional IPO financing in the American market. It’s reported that ICO financing for the first quarter of 2018 was about 40% of IPO’s, and this data increased to 45% by the second quarter. Not only that, but the total amount of ICO financing is expected to reach 30% of the total risk investment market. According to data from Puhua Yongdao and CB Insights, American ICO financing reached $72 million dollars in the second quarter, while IPO financing reached $160 million.

2. China

(1) ConsenSys: The ConsenSys blockchain software company will provide blockchain consultation for the Xiongan New District.

July 23: According to a Memorandum of Understanding signed by the blockchain software company ConsenSys and the Xiongan New District on Monday, ConsenSys will provide software solutions related advice for the Xiongan New District on how to use blockchain technology to build a smart city. Consensus founder Joseph Lubin states that “this our first big project in China. We plan on utilizing Ethereum technology to build the infrastructure.”

(2) Nebulas: The Nebulas chain will work with the phone game development platform Cocos.

July 24: Nebulas and the open-source mobile game development platform Cocos are entering into an agreement to share technological and community resources to strengthen Nebulas gaming application technology.

(3)The Big Three: China Mobile, China Telecom, and China Unicom are working together to create a reliable blockchain communication app group.

July 24: According to information from China Communication Network, a blockchain communication app group has recently been formed by China Mobile, China Telecom, and China Unicom. Guo Manxue of the China Mobile Research Institute has been selected as the group chairman. The goal of the organization is to establish a reliable team to explore invoicing, contracts, and other blockchain applications.

(4)China Information and Communications Technology (ICT) Institute: Financial Blockchain Research Report 2018

July 24: The Chinese ICT institute has released the Financial Blockchain Research Report 2018, which summarizes eight principle conclusions for the current stage of blockchain financial technology:

1) Blockchain will have a profound influence on the issuing and circulation mechanisms for sovereign cryptocurrencies

2) Blockchain has certain advantages in cross-border and large sum payments

3) Blockchain will have a positive effect on the financial system

4) Supply chain financing is a suitable application scenario for blockchains

5) Blockchain application is still in the theoretical phase of the security exchange field

6) Blockchain application in the insurance field emphasizes openness and transparency

7) Blockchain technology will be helpful in creating a credit reporting data sharing platform

8) Blockchain finance applications face challenges and regulation

IV. Cryptocurrency

FOMO3D SECBIT Laboratories: FOMO3D has data loopholes

July 24: Reddit user Karalabe exposed a safety vulnerability in the FOMO3D system which was later confirmed by SECBIT laboraties. The smart contracts of FOMO3D games can leak data which can be taken advantage of. FOMO3D contracts and all contracts based on the same code have this safety vulnerability. Games with a large degree of randomness can be manipulated to greatly increase the chance of reward.

Loophole details:

It’s difficult to use Ethereum smart contracts to generate a random number that’s completely impossible to predict. FOM3D developers added a judgement logic to the contract to determine whether the caller is an ordinary human or a contract to try and circumvent, but this logic has a loophole. Attackers can utilize the contract to predict the random number, thereby greatly increasing the probability of winning.

The rating agency Tokeninsight has previously suggested that FOMO3D has the potential for contract security risks, and that players entering late have a greater investment risk.

Ⅴ. Voices

(1)CEO of Forbes China: The role media plays in blockchain development is indispensable.

July 23: The Global Media Blockchain Summit in Hong Kong was recently held in Hong Kong. Forbes China CEO Li Siwei stated that the role media plays in blockchain development is indispensable. He believes that media can effectively contribute to the development of blockchain in four ways: information services, investor education, deep research and platform interoperability. Li Siwei said, “The media can help establish a blockchain risk warning system and open up resources within the industry by providing accurate, effective, and deep market research.

Yu Guoming, executive director of the School of Journalism and Communication at Beijing Normal University, said that the mainstream media will probably become the organizer, builder, and even the architect and innovator of the highest level of society. It will also play a crucial communication role in the development of new fields like blockchain, artificial intelligence and big data.

(2)Research Report: Hardware wallets are currently the most secure

July 23: Block Data Think Tank recently published the Market Mainstream Cryptocurrency Hardware Wallet Report. The report reveals that hardware wallets are the most secure out of any kind of wallet. Compared with chip-based hardware wallets, hackers are more likely to launch targeted attacks on mobile phone wallets when they get their hands on physical devices. When comparing from a security point of view, the chip class is more secure than the Android system-based wallets. The Android performs better, is smarter, and brings a better user experience from a performance perspective, but operating it is more complicated.

Ⅵ. Market Trend

(1) Funds: Bitcoin’s market value increases with the price, indicating that institutional investments are entering the market

July 23: The market value of Bitcoin has a significant relationship to fluctuations in its price. When Bitcoin recently rose from $6,200 to $7,500, the market value also rose from below 40% to 45.5%, while the market share of Ethereum and other cryptocurrencies decreased by about 3%, settling at 17% and 22%. Due to Bitcoin’s high liquidity, especially for large investments, the relationship between Bitcoin’s market share and its price changes may mean that most of the new investors are institutional investors.

(2)Market: BTC rose 9.37% with an amplitude of 16.3%