Chris Khan, a project lead for our GCL, is filling in for Todd this week since most of you are probably reading this from an iPhone screen on the beach.
There’s no better reminder to store your personal cryptocurrency stash in cold storage than the news that Bitfinex is normalising losses across all their customers to the tune of 36%, including across other cryptocurrencies as well as USD. To compensate, they’re issuing a new token called “BFX” as a makeshift representation of the debt incurred to customers. In theory BFX is pegged 1:1 to the dollar, though tokens are selling for less than one-third of that. It remains to be seen what comes of Bitfinex, but the broader question about security still remains. What kind of recourse does one have in an unhinged situation like this ? Especially if your account only held US Dollars (which weren’t compromised in the hack), which were then taken by Bitfinex to socialise losses among all their clients ?
2. Crusader Engines on a Clipper
In what was an unseasonably quiet week in the fintech space, R3 wrapped up two prototypes demonstrating how distributed ledger technology could address some of the key challenges facing the trade finance industry. Using self-executing transaction agreements built on Corda, 15 member banks tackled issues relating to accounts receivable purchase transactions and letter of credit transactions. At the same time, some of our consortium members undertook a similar task with the Infocomm Development Authority of Singapore (IDA) using code provided by the Hyperledger Project.
3. Cocktail Party Conversation Pieces
Other good pieces (not necessarily agreeing with any of the points made therein):
“This relationship between protocols and applications is reversed in the blockchain application stack [versus the Internet stack]. Value concentrates at the shared protocol layer and only a fraction of that value is distributed along at the applications layer. It's a stack with "fat" protocols and "thin" applications.”
- Last weekend, the cryptocurrency community’s biggest frenemy Tim Swanson made a cameo at the Palo Alto Ethereum meetup to present on the topic “code is now law.” And if code isn’t law, who makes the million dollar decisions that are best for business ?
- Put on your best detective caps and find the stolen Bitfinex coins and you could be $3 million richer.
- Bonus : if you spend as much time behind the wheel as I do, check out Tim’s podcast appearance on BigFintechMedia, where he discusses building a distributed ledger fit for financial services.
* Second choice here was “Bitfleeced.”