The Weekend Read: August 14

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. 

1. Bitfinessed*

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):

* Second choice here was “Bitfleeced.”