Day: July 7, 2017

In less than four weeks the Bitcoin network has many events on the horizon, and numerous things could happen during the weeks following.

Also read: A Look at the Bitcoin Apps Being Built Using the Lightning Network

The Fear of a Chain Split

Right now over the course of the next 3-4 months, there are many plans for the Bitcoin network. Often times at Bitcoin.com we have discussed this matter in great detail, but people still wonder what will happen to their bitcoin holdings if the blockchain splits. Several potential outcomes can happen with these particular three ideas; The user activated soft fork (UASF) that begins on August 1, Segwit2x which starts around mid-July to October, and the more recent Bitcoin ABC (UAHF) that might deploy in August.

There’s a number of things that could happen with any one of these plans, but the biggest fear is the possibility of a chain split. A chain split is when the blockchain fractures into two chains due to the fact that consensus was not met during an upgrade. That means a particular portion of the Bitcoin network participants disagreed on the plan and chose to ignore the other side’s rules or protocol upgrade. This happened with the Ethereum network, and now there is another blockchain called Ethereum Classic. Now, just because the Bitcoin blockchain splits it doesn’t mean the smaller chain will survive. But the first and foremost thing every bitcoin holder should know if they both survive; If you hold your private keys during a chain split you will be able to retrieve tokens for both chains.

During a Chain Split, Significant Price Fluctuations and Confusion is Probable

That doesn’t mean you will double your money as one token will be worth considerably less than the chain with the most proof-of-work and possibly even be worthless. The chance of a smaller chain surviving with the current network difficulty for miners would be a tough thing to accomplish, and the chain would need a decent amount of support to survive. The new chain or the legacy chain does have a chance to grow longer than the other, and each chain will have a certain amount of hashrate. If there is a chain split the likeliness of significant price fluctuations and confusion is very probable.

The best way to ensure your funds will be safe during a chain split is making sure you possess your private keys, backups, and make sure your seed and encryption phrases are secure. If you have possession of your keys, you don’t have to do anything but be patient and watch everything unfold.

Stating the Obvious: Bitcoins Held on a Trading Platform Leaves You at the Mercy of the Exchange

If you keep your money on an exchange or with a third party that possesses your bitcoin keys you will have to deal with the decisions they decide to make during and after a chain split. People often ask this when learning about the possibility of a chain split and it should be fairly obvious you must surrender to their control. There may be lots of confusion and exchanges may halt trading. Trading platforms may also disable deposits and withdrawals during these times as well. Some of the largest bitcoin exchanges or brokerage services could go offline, and you may not have access to your bitcoins. The point is; if they hold your funds you will have to abide by their rules, guidelines and possible unfavorable outcomes.

Take Some Time to Secure Your Keys and Backups

During the next few weeks, people will have time to make sure their backups and seeds are in order and they can also move their funds off exchanges. However, the choice is entirely up to the user, and there will likely be many individuals who leave their bitcoins with third parties. Split or no split, giving the custodial rights to your bitcoins will always leave you at the mercy of that particular business or operation. Furthermore, there is also a chance that the bitcoin community participants do come to consensus and there is no chain split whatsoever. However just to be on the safe side, there are a few steps below detailing what people can do to make sure they hold their private keys and everything is backed up and safe for the next few months. Alongside this, there are also a few articles that go over chain splits, the upcoming scaling plans, cold storage solutions and more so you can further your knowledge about these subjects.

Private Key Safe-Keeping

• Backup your wallet, associated files, and your wallet’s encryption phrase.
• Make sure your wallet software or firmware is up to date.
• Make sure your passwords and seeds or mnemonic phrases are available and written down.
• Move your bitcoin holdings off an exchange to a wallet you control and follow steps 1-3.

Informative Articles: 

• Scheduled Scaling Updates for the Bitcoin Network Are Getting Closer
• A ‘Segwit2x Working Group’ Has Submitted a Bitcoin Scaling Plan
• Segwit2x Beta Released and New UAHF Code Proposal `ABC´ Removes 1MB-Limit 
• Bitmain Announces Hard Fork Protection Plan Against UASF
• New Scaling Attempt UASF and Mining Alternative Bcoin Might Change The Game Altogether
• This Happens to Your Coins During a Bitcoin Hard Fork and Possible Blockchain Split
• Bitcoin Could Face Ethereum-Style Split
• The Idiot-Proof Vault: A Simple Cold Storage Guide
• How to Restore a Hardware Wallet Using a Seed Phrase
• Not Your Keys? Then It’s Not Your Money in Bitcoin-Land

Have you secured your bitcoin private keys and necessary backups? What outcome do you see happening over the next three months? Do you think consensus will occur? Let us know in the comments below.

Images via Pixabay, and Bitcoin.com.

Need to calculate your bitcoin holdings? Check our tools section.

The post The Blockchain Split Scenario: Staying Informed and Backing Up Bitcoin Keys appeared first on Bitcoin News.

06 July, 2017 Changelly, a well-known cryptocurrency exchange, has announced its partnership with Jaxx, one of the most prominent wallets in the crypto community. Changelly’s API is going to be built directly into the application, allowing frictionless conversions between different cryptocurrencies available in Jaxx wallet. About Jaxx Jaxx is a multi-asset, cross-platform wallet designed to … Continue reading Changelly Announces Partnership with Jaxx wallet

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Moneypolo is an international payments processor which, among other things, services cryptocurrency exchanges such as BTC-e and Exmo. Sibcoin, a project developing the eponymous cryptocurrency, has agreed to the integration of the coin in the services of Moneypolo. With Sibcoin connected to Moneypolo’s system, it is now possible to withdraw it with a plastic card … Continue reading Sibcoin and Moneypolo Join Hands for Better Withdrawal Solutions

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Wall Street strategist Tom Lee sees Bitcoin value at $55,000 based on its limited supply and market stabilization.

Former senior manager at management consultancy firm Bain & Co, Roberto Ponce Romay, has launched a Crypto Assets Fund (CAF) to attract investments from wealthy families in the Latin American region.

On July 7th the mining pool BTC.com mined a block that contained a transaction with an 80 BTC fee attached. BTC.com believes the fee was an accident as the transaction fee should have been around 2 BTC and the pool is looking to give the sender a refund.

Also Read: How Much Does it Cost to Run a Full Node?

BTC.Com Finds an 80 BTC Fee and Offers to Pay the User Back

The China-based mining pool BTC.com was surprised to find a transaction in a block they mined tethered to an 80 BTC fee ($200,000 USD). The accidental fee is a large one, but this type of incident has happened many times over the years. The mining pool says they are not interested in keeping the money and would like to pay the user back if they can verify it was their transaction.

“Recently, BTC.com mined a block containing a transaction that carried a staggering 80BTC fee,” explains the mining pool’s blog post. “Obviously, something’s up with that. All things said and done; the correct fee should have been approximately 2 BTC.”

If that was your transaction, we want to help. We’re not interested in making a quick buck, especially if it comes at the loss of another bitcoiner. That’s why we’re reaching out. Again, if you are the person in question, let us help you get your funds back.

The Curious Case of Accidental Fees

Accidental fees have happened many times throughout bitcoin’s existence. Back in April of 2016, the Bitclub Network mined block #409,008 which had a 291 BTC fee attached to a transaction. At the time the transaction was worth roughly $135,000, and no one ever came forward to claim ownership after Bitclub said they would give the fee back. Following this incident, the Bitclub mining pool donated half the funds to the Bitcoin Foundation.

This past March Bitcoin.com reported on a Bitmain customer who overpaid 2.5 BTC in a transaction mined by the company’s Antpool. The accidental fee sender took his story to cryptocurrency forums, and the pool gave the funds back to him.

“First of all, this mistake was caused by himself, and we don’t take responsibility for this,” explains Bitmain’s customer support. “But thank you for all of your support and unconditional trust for Antpool and Bitmain, our company has decided to pay his loss.”

Paying Accidental Fees Back Is Not Required, but Many Pools Have Offered a Refund

Back in 2013 the mining pool Asicminer found an overpaid 200 BTC fee. According to reports the pool’s operator “Friedcat” refunded the fee soon after finding the block. At the time bitcoin community members called Friedcat a hero for encouraging other pools to pay accidents like these back. In 2014 BTC Guild found an accidental 30 BTC transaction and gave the user back a fraction of the loss.

Miners don’t have to fix these mistakes or reimburse people for fee errors, but most of them have paid them back or have offered to when these issues arise.

What do you think about the 80 BTC fee BTC.com found? Do you think miners should give people a refund for their mistakes? Let us know what you think in the comments below.

Images via Shutterstock, Pixabay, Bitcoin.com, and BTC.com.

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The post Mining Pool BTC.com Finds Accidental 80 BTC Fee – Offers a Refund appeared first on Bitcoin News.

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Most Ethereum users are too aware of the different wallet solutions at their disposal. Parity is one of the most popular wallet options in this regard. Interestingly enough, the Parity project also has a Chrome extension, which provides similar functionalities to a certain degree. However, Parity is about more than just a wallet service, as it serves as an official Ethereum browser as well.

An Overview of the Parity Chrome Plugin

Similar to how the Parity project works, its Chrome plugin offers the same degree of functionality. Parity is mainly an Ethereum browser, which gives users convenient access to everything the Ethereum ecosystem has to offer. It also has built-in wallet capabilities, which means it can be used to send, receive, and store Ether currency. The main selling point of this project is how it provides users around the world with access to decentralized applications and ERC20 tokens, among other things.

Thankfully, the Parity Chrome plugin can also be installed from the webstore directly. This makes the process a lot easier compared to downloading a package from GitHub and having to complete the process manually. A lot of novice users would struggle with having to do it the manual way, to say the least. Chrome is not the most user-friendly browser when it comes to installing new extensions, as it is quite a confusing process for most novice users.

That being said, being able to port important Parity functions to the browser is quite significant. Using the Chrome extension doesn’t require users to download the Parity desktop client, which is a nice addition. Users can open Dapps right in their browser, as well as inspecting and confirm transactions related to the Parity desktop client. It is certainly possible to run this client without its desktop counterpart, but it will not provide the full experience, by the look of things.

As soon as users fire up the Chrome extension, they will see an error message. This message informs them of how they are not connected to a local Parity Node, and will not integrate seamlessly with the Ethereum network. Unfortunately, there is no reason to use the Chrome plugin itself without the desktop client. It is rather evident this plugin is designed to be a companion solution for the desktop client. Once again, rather confusing for novice users.

This also means the Parity Chrome extension will not serve as a regular wallet on its own, and does not support ERC20 tokens or cryptocurrency ICO participation unless you have the desktop client installed. People who are looking for an Ethereum wallet solution for ICOs which works directly from their browser will have to look elsewhere, unfortunately. Then again, not every Chrome extension is designed to provide a full-fledged wallet experience, which is only normal.

In the end, it is important to remember the Parity Chrome extension is a companion “app” for the desktop client. Without it, there is no real use for it on its own. The Parity desktop client offers a lot of exciting features for people to check out, including direct access to decentralized applications built on top of the Ethereum blockchain. The Chrome extension will provide some neat functionality to desktop client users, although not everyone will have a need for them.

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DDF will raise investment funds using an Ethereum-based token sale. In the upcoming token sale, DDF is targeting sale proceeds as high as 247,500 ETH with a cap of 247,500,000 DDF Tokens. The ICO will commence July 10th, 2017, 10:00 UTC. The Smart Contract address where Ether should be sent to can be found shortly … Continue reading Digital Developers Fund’s Initial Coin Offering (ICO) Starts Monday, July 10th

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A Swiss city known for its cryptocurrency startup ecosystem is launching a new ethereum-based identity service.

Source

Southwestern University of Finance and Economics professors in China believe that Blockchain technology can be used to save companies billions of dollars in losses resulting from the creation of fraudulent electronic files and unauthorized alteration of information.

Starting a new company is one of the most rewarding activities that an entrepreneur can be involved in. While there are ample rewards available for the business owner when a new company succeeds, a large number of risks also exist.

It can be very difficult to work out a financial plan and zero in on what everything is going to cost. As a result, many new business owners make some common financial startup mistakes at the very beginning of their new venture.

These mistakes can be serious enough to bankrupt your company early on. This makes it critical to have your finger on the pulse of your business finances from the very start to avoid these five critical mistakes.

Not Having Enough Startup Capital

One of the biggest mistakes that entrepreneurs make is starting out without enough capital. They miscalculate how much startup costs will run, and they get started too early. They don’t allow anything for emergency costs that come up along the way.

It’s always a good idea to dream about the potential of your business and have a positive outlook, but you have to plan ahead for mishaps also. Having more startup capital than you think you need is a good idea. Without enough startup capital in the bank, your efforts could be derailed before you even get started.

Miscalculating Your Cash Burn

One of the most important financial numbers to know in business is your cash burn rate. This is the amount of cash that it takes to keep operating your business on a monthly basis. It’s very easy to miscalculate what you’ll spend on a monthly basis ahead of time.

If you don’t have a good handle on your burn rate, it’s easy to miss milestones and run out of cash too early. Start out with a bottom-up budget using real world variables to get a good handle on what things will cost. That will also give you a much more realistic version of your projected cash burn than doing a top-down analysis.

Making Bad Hiring Decisions

Employees are typically the biggest expense for a startup company and employee costs add up very quickly. You have wages, payroll taxes, health insurance, workman’s compensation, and other direct expenses associated with employees. In addition to the direct costs, there are other costs such as office space, equipment, and other similar items to consider.

One of the biggest mistakes that entrepreneurs make in this vein is to hire too many people too quickly. In the startup phase, it’s in your best interest to get creative with staffing. Look for people with a high upside that can handle many different types of tasks well.

You can also outsource anything that isn’t considered a core competency. For example, most small businesses could outsource their bookkeeping and payroll, since that is not what they specialize in. It’s often much cheaper to outsource this compared to hiring a full-time employee. Most of the time you can get better results as well.

Another way you can save up on overhead expenses is to implement a telecommuting policy which will allow your employees to work remotely. Such working arrangement does have many benefits, but it also has some disadvantages, so consider all the pros and cons before implementing it.

Not Getting Professional Help With Expenses

One of the big mistakes that entrepreneurs make is thinking that they can handle all of the financial matters by themselves. Early on, hiring a CFO probably isn’t in the budget. However, if you’ve closed a seed round of investment, are earning large amounts of revenue or you have massive expenses, you may want to look at hiring a CFO to handle the more complex financial issues that come up

Many accounting firms offer outsourced CFO packages that are combined with bookkeeping and payroll. This may be a great way to fill in the gap of not having a CFO early on, while getting your financial transactions handled at the same time. By doing this, you’ll be able to focus on the important tasks that make up your core business practices.

Not Planning for the Future

Having a solid business plan early on is essential. You need to base your numbers in the plan on real, solid projections and not merely a guess. Start out your business with solid habits such as ensuring the books are clean and correct. Think about the long-term decisions that will affect efficiency. Don’t mortgage the future for a short-term solution.

You should also have some kind of an exit strategy in mind early on. Even if it changes down the line, you will at least have something guiding your decisions now.

Final Thoughts

Overall, it’s critically important to avoid the common pitfalls that most small business owners face in the startup phase. By making realistic projections of expenses and burn rate, you can ensure you have enough capital before getting started. Keeping your staff small and flexible is also essential during this phase as you can avoid a huge source of cash burn. Getting help from a professional in crafting your long-term business plan is also wise early on in the process. Regardless of the specific steps you take, keep your eyes on the prize while being grounded in reality throughout.

About the Author

Lisa Michaels is a freelance writer, editor and a striving content marketing consultant from Portland. Being self-employed, she does her best to stay on top of the current trends in the business world. Feel free to connect with her on Twitter @LisaBMichaels.