The EU Blockchain Observatory and Forum (EUBOF) has published updated new findings and views regarding the energy efficiency of blockchain technologies. This topic, specifically for the mining of Bitcoin blockchain assets, is the subject of debate.
Based on reports about massive energy demand for mining Bitcoins questions arose as to the sustainability of such technologies. Based on the analysis and comparison of different Blockchain technologies a set of recommendations are made.
The paper provides a number of recommendations to policy makers.
Open Call #2: Apply now. The deadline is September 10, 2021
Here is the key question: How could the introduction of blockchain technology enable new models, higher trust, better exchange? Do you know? If yes, don’t wait to send in your application before the deadline.
Selected ideas will get up to €175.000. If you are unsure, have a look at the ten projects TruBlo selected from open call #1. There is a profile of each project on our website:
European Data Protection Agency argues against the use of additional data for credit scores
In a paper, the European Data Protection Supervisor said that using additional private data should not be the basis for credit scores by financial services. The recommendation came as an answer to a blog post by the International Monetary Fund (IMF). IMF researchers had suggested that credit scores would be more accurate if the analysis could use non-financial data points such as the “type of browser and hardware used to access the internet, the history of online searches and purchases”.
Gang behind ransomware attacks shuts down, provides decryption key for victims.
A ransomware gang named Ragnarok has shut down its operations. The group provided a digital key to enable victims to decrypt files blocked for use by the group. From reports, it did not become clear what caused the move – such as more pressure from police or other authorities. Recently other groups stopped their activities, too.
Sales of NFT collection Cryptopunks cross $1 Billion
NFTs (non-fungible tokens) are in high demand, partly driven by speculation about the potential rising values of digital collector’s items in the future.
For example, Visa, the credit card company, announced that it had bought one item of the Cryptopunk platform for $150.000 a week ago. The company said it wanted to add the digital asset to its financial history collection.
Cryptopunks is a collection of 10,000 computer-generated characters, collected and traded. As an NFT, there is proof of ownership; the information is stored on the Ethereum blockchain.
Now the Larva Labs, the company behind the project, announced that it crossed $1 Billion in all-time sales. Two other NFT platforms had reached that level before. Opensea reported all-time-sales of $3.54bn and Axie Infinity of $1.68bn, according to data published about different digital marketplaces via dappradar.com
Understanding NFTs: Artificial scarcity and the demand for status in a digital world
To anyone who is not exposed to daily news updates from the blockchain/crypto world, it is hard, really hard, to understand how and why digital collectables (NFTs) are in such strong demand by some people. The linked article might help to understand some driving forces here.
Axel Springer buys US news website Politico for $1bn
The news sector has been battling falling revenue from traditional print and advertising for 20 years. In 2013 Amazon founder Jeff Bezos paid $250 million for the “Washington Post”. Roughly eight years later, at least some digital news offerings demonstrate how to grow and make a profit in a digital world. In addition to the broader political reporting, Politico makes money by selling a professional feed of constantly updated info to lawmakers and politicians in the US capital.
New York Times adds a paywall to review site Wirecutter
Wirecutter is a website offering product reviews. The New York Times acquired the website in 2016; now, this content will get a separate paywall. In the future, readers will have to either pay five dollars per month or select the premium NYT subscription bundle.
The story of Wirecutter is interesting: Founded in 2011, the website provided unbiased help to select the best product in a given category. In the early years, the site was free and made money as an affiliate of Amazon, earning a commission when people would buy via a link from a Wirecutter review.
Apple reduces commission for digital subscriptions from 30 to 15%
Nieman Lab has a longer article looking at how and why Apple reduces the percentage paid for regular subscriptions. For example, smaller publishers who receive less than one million US-Dollars from Apple news subscriptions will benefit from the reduction.
How much big platforms charge from all others will be an ongoing discussion into the future. For news publishers, the pressure is already there today, given that many have lost print advertising budgets over the last two decades.
In a ruling from in South Korea, Apple is under pressure to allow developers the integration of other payment channels in addition to payments via the app store. John Gruber, an Apple expert and writer of the blog “Daring Fireball”, published an article about what to expect: More options, but more complexity, too, for sellers and buyers.
Global Market for “Blockchain-as-a-Service” platforms to grow from$2.31Bn in 2021 to $15.8Bn in 2026
A market study from ResearchandMarkets.com expects strong growth for blockchain services and platforms. Large, small, and medium firms are expected to increase the adoption of blockchain-as-a-service (BaaS) tools. The resource can be used for payment systems, smart contracts, and to take part in market segments where digital currencies gain ground.
Twitter & Square CEO Jack Dorsey wants to build a decentralized Bitcoin exchange
Jack Dorsey is known to be a fan of cryptocurrencies. Now the entrepreneur seems to set the sight to develop a decentralized exchange to cater to the need to switch from standard currencies to various crypto tokens.
Centre, a consortium founded by Circle and Coinbase, expands team for global stablecoin exchange
This sounds similar. The idea is to establish exchanges for stablecoins, which are based on a specific currency worldwide. Several countries are Centre announced this week that the company has formed a team of specialists, intending to enable a “global network of stablecoins”.
In 2018, we witnessed the first phase of speculative investments into blockchain and cryptocurrencies. A typical way to collect money at the time was an ICO – an “Initial Coin Offering”. The process shared some aspects of taking a company public, but in the case of an ICO, usually without any oversight by authorities. Later, many ICO projects did not deliver what they promised, folded and went out of business. Three years later, some people involved in promoting such ICOs get verdicts in lawsuits and are ordered to pay sometimes hefty fines.
Thank You for reading.
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Today we are starting the 2nd of three open calls. The call will be open until September 10, 2021. Find all the information [to apply on our website](https://www.trublo.eu/apply/).
If you have questions, please contact us at [info@trublo.eu](mailto:info@trublo.eu)
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Updates this week:
#TRUST
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##How did the FBI recover Bitcoins paid in a ransomware attack?
The recent Colonial Pipeline ransomware attack in the US worried many people that the supply of gas would be threatened. In such an attack, hackers gain access to the IT system of a company and block further usage. In this case, the company paid 75 Bitcoins worth around $4 million.
Surprisingly, the US justice department has now recovered most of these Bitcoins by tracing and later seizing them. It is surprising because so far many would have assumed that such coins could be very difficult to trace and to recover, once paid. It is unclear whether the authorities had information from an insider or were able to trace it by technical means.
Quote from a report in the New York Times.
> “Federal investigators tracked the ransom as it moved through a maze of at least 23 different electronic accounts belonging to DarkSide, the hacking group, before landing in one that a federal judge allowed them to break into, according to law enforcement officials and court documents.”
Another question, asked in the article linked below from VentureBeat: Why did the hackers use Bitcoin (where information can be traced, to some extent) and not another cryptocurrency where this would have been harder? And as important: How can one avoid such ransomware attacks by securing the IT system?
##Sustainability as a driver for blockchain adoption in the fashion industry
Producing fashion is a global business with complex supply chains. As a result, it is almost impossible for a consumer to check how the clothes are produced. This includes where and how materials are sourced, which shop did manufacture them and how they are shipped. The process is so far difficult to document for the fashion companies as well. But the need for transparency and the potential gains for productivity might change this. Blockchain records of supply chains are in demand because more and more consumers demand information about sustainability from fashion brands.
A dark pattern is a website design used to confuse users. For example, such a design aims to keep people from ending a subscription.
There are many tricks and practices. What they have in common is that specific placement of options, words and buttons is combined to make it difficult for you to do what you want. Do you think you can detect such a pattern? Test it. The Markup has a short quiz – very helpful to learn a bit more when to be careful.
##News sources reconsider theory that coronavirus spread from a lab in China: How is this done well?
Here is a difficult, but interesting question: What are the best ways to change the opinion and the reporting about a disputed theory?
Example: So far, there is a theory that the coronavirus has infected patient zero from a wild animal purchased at a Chinese market in Wuhan.
But another, controversial theory is that the virus might have escaped from a medical facility located in that city. In 2020 the majority of media outlets reporting about this topic dismissed the lab story as a potential conspiracy theory.
This year, though, the story is investigated again. While no substantial new facts are available, the view is now that the lab theory could potentially be true. US President Biden has ordered an investigation by intelligence agencies.
What is interesting and relevant here is: How do news institutions communicate such a turn of opinion? What is a good way to be transparent and open about such changes? Such as: “We reported this, and it might be wrong. Instead, this might be the truth.”
This case could be a test.
>“New information often casts out old, but it is unusual for news outlets to acknowledge so publicly that they have changed their understanding of events.”
##How to use disappearing messages on WhatsApp or Signal
On both services, there are settings to let some messages disappear after some days. Signal offers richer features. On WhatsApp, the feature is new.
When can you use this feature?
>“Disappearing messages are an ideal tool for people who are concerned their chats could be checked – especially if there is anything about themselves they want to keep private, says Scott Sammons, information and data specialist Lighthouse IG. “This could apply to a domestic abuse setting or someone, for example, hiding the fact they are LGBTQ.”
On Signal, you can select the time when a message should disappear, between one second and four weeks. The timer starts when the message is read. There is a similar feature for photos and videos.
On WhatsApp, the feature only lets you set a time span of seven days.
##Politicians from South America use Bitcoin announcement for self-promotion
First: It is not yet clear whether countries in South America will adopt cryptocurrencies such as blockchain. But for politicians from the region, the idea is currently attractive and a way to boost one’s profile. This started with El Salvador issuing a law to make Bitcoin a legal tender in the country.
>“El Salvador’s president Nayib Bukele set off a movement for political opportunists and crypto-enthusiasts alike.”
In Europe, Christine Lagarde, the president of the European Central bank, reaffirmed that the position of the ECB has not changed. Lagarde had warned about Bitcoin in January 2021:
> “It’s a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity.”
Regarding the position of the ECB towards Bitcoin after the new development in El Salvador, she is quoted to have said:
>“That certainly does not change our approach to crypto-assets and to regulations, supervision, and proper classification that they should be under to avoid misinformation and misleading representations.”
On the other side: In the Netherlands Pieter Hasecamp, the director of the Bureau for Economic Policy Analysis, which is part of the country’s Ministry of Economic Affairs and Climate Policy, has voiced much stronger concerns about the dangers of Bitcoin. In an article, he recommends banning cryptocurrencies in the Netherlands:
>“Cryptocurrencies are unsuitable as a unit of account and means of payment outside the criminal circuit; its use as a store of value is based on the hope that cryptocurrencies will one day replace real money. But that’s not going to happen.”
The Basel Committee on Banking Supervision recommends very careful handling of crypto assets by banks, the goal is to avoid that institutions expose themselves to high risk. The Basel Committee sets standards for banking policies, such as how high the number of own assets must be for a bank related to the sum of credits and loans.
The Basel Committee published a paper called [“Prudential treatment of crypto-asset exposures”](https://www.bis.org/bcbs/publ/d519.htm). For cryptocurrency exposure, the Basel Committee proposes a 1250% risk weighting, which is very high.
According to a job ad in the US, Amazon is searching for staff with experience in decentralized finance (DeFi). The position is for a Blockchain Head of Product. Amazon has recently added a “Managed blockchain” offering.
##China aims to be a global leader in Blockchain by 2025
Top telecom and internet regulators in China jointly published guidelines on how the country can transform into a global leader in blockchain as early as 2025. At the same time, Chinese authorities are blocking and curbing cryptocurrency mining operations in the country.
The expectation is that blockchain will be a key building block for the digital economy and a way to modernize governance systems.
We are getting closer to NGI Forum 2021 on May 18-19, 2021. Please join us for presentations and discussions. Register NGI Forum 2021
Updates this week:
TRUST
Don’t ignore ransomware
The way this happens: Attackers hack the IT system of a company, a police force or a even hospital. Then the only way to regain access to the system is by paying huge amounts of money.
Despite being a thread for some time, the situation around ransomware has not improved. There is a lack of policies and actions for the active prevention of this threat.
From an interview in The New York Times:
What is the United States doing to stop or slow ransomware? We’re not trying very hard. The United States is the most targeted country by cybercriminals and nation-states, but we’re not acting like it. We’re mostly outlining guidelines for companies and government agencies to prevent ransomware attacks and hoping for the best. It’s not working.
Related: How the US United States Lost to Hackers LINK ($)
Newsmax, a conservative news channel, posts an apology
The news outlet had accused an employee of Dominion Voting Systems of manipulating results in the 2020 US presidential election. The person received a wave of insulting messages, including death threats. Now the news outlet published an apology.
How sure are scientists about global warming? Why are they coming to current conclusions and predictions?
“Degrees of uncertainty” is a data-driven documentary by Neil Halloran. The video educates about certainty and uncertainty occurring around complex issues.
EU vs. Apple: App store sales fee results in antitrust
The key point is that a competing music service like Spotify has no alternative as to paying a fee of 30% on all transactions, if it wants to offer a music subscription using devices by Apple, such as iPhones, iPads or computers.
From The Guardian:
“By setting strict rules on the App store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition,” Margrethe Vestager said. “This is done by charging high commission fees on each transaction in the App Store for rivals and by forbidding them from informing their customers of alternative subscription options.”
This is the first step of an EU antitrust investigation. It is likely to take years until this issue will go through the courts.
Confidential documents submitted in the ongoing Apple vs. Epic Games case reveal that Microsoft has been planning to cut Microsoft Store on Xbox fees to just 12 per cent.
Microsoft reducing the Microsoft Store on Xbox cut for games to just 12 per cent could be a big deal as this would mean that game developers would get 88 per cent of the revenue share. All other major stores take a 30 per cent cut on game sales, including Sony’s PlayStation Store and Nintendo’s online store.
Protocol reports about NewsBreak, a popular news aggregation app that uses Artificial Intelligence to find and display local news for users:
News Break has succeeded using tactics imported from China, where news delivered via algorithm — a practice pioneered by ByteDance’s Toutiao — has flourished.
An “interest-based engine” powered by AI selects articles readers are likely to enjoy based on past engagement.
Content aggregators like News Break aren’t just winning in the U.S. market. Opera News, owned by Beijing Kunlun Tech, and Scooper News, developed by Shenzhen-based Transsion Holdings, have both made significant inroads into Africa and Europe.
Medici Land Governance(MLG) has partnered with the Government of Rwanda to pilot a project that aims to make land transfers a paperless process. For the pilot, MLG has built a land transaction platform on blockchain called Ubutaka, which will be integrated with Rwanda’s existing land registry infrastructure.
Inefficient and inaccurate land registry systems are a common challenge in many developing countries. The loss of paperwork often prevents landowners from proving ownership, making people hesitant to invest in developing properties. Additionally, the lack of standardization and auditing in land management leaves the door open to corruption and fraud.
Charlie Munger of Berkshire Hathaway is highly critical of Bitcoin
“I don’t welcome a currency that’s so useful to kidnappers and extortionists and so forth, nor do I like shuffling out a few extra billions and billions of dollars to somebody who just invented a new financial product out of thin air.”
It’s no secret that the cross-border payments landscape using traditional rails is fraught with fees, hurdles and delay.
Individual senders incur outsized fees for the billions of dollars sent in personal remittances every year.
Part of the problem is that systems are not interoperable. To send money to different corners of the world without blockchain, a whole patchwork has been haphazardly knitted together over the decades to achieve some semblance of financial interoperability between financial institutions, correspondent banks and money transfer operators along the value chain.
In February 2021 the “Coalition for Content Provenance and Authenticity” (C2PA) combined and consolidated the efforts of two projects with similar goals. On one side “Project Origin”, founded in 2020 by Microsoft, BBC, The New York Times and CBC/Radio-Canada.
On the other side a group by the name of “Content Authenticity Initiative”, founded by Adobe. In the new, larger group more members are represented, including the chip-makers Arm and Intel. TruePic, a startup with interesting technology in this space is a member, too.
What all the participants have in common is this: To develop standards and tools for reliable content provenance. This would include certifying the source, the origin and the history of content elements. But, it is not an attempt to re-create DRM (Digital Rights Management).
Today falsifying content is easy
So far, content that is accessible on the internet can be intentionally falsified, easily.
Tricking search engines: From false claims to falsified sources to sloppy or falsified metadata. For example a low level, but common approach to content fraud is to simply change the publishing date. Search engines are good at finding content, but all search platforms are challenged by falsified data and information.
No restrictions in Content Management Systems: For the sake of convenience, almost all currently used Content Management Systems do not impose strict guidelines nor checks for copyrights or whether the publishing data is correct.
In earlier communication the group behind Project Origin stated the goal: “Having a provable source of origin for media, and knowing that the content had not tampered with en-route, will help to maintain confidence in news from trusted providers”.
Technical demonstrators so far
How do they want to get there? So far the concepts are demonstrators or software in beta. Technically, the idea is to define an “end-to-end process for the publishing, distribution and presentation of provenance enhanced media”. Provenance is of course the key here. It means that added information should enable to trace down where the content came from and whether what is presented is actually the version that was published at the origin. Provenance information will be added no only to text-based media but also to audio, video and images.
In September 2020 the project origin published a short video, which narrated the motivation as well as the early proof-of-concept models. Key goals are to confirm the identity of the publisher and to ensure that the content has not been tampered with. This applies to the visible editorial parts, but also to metadata which might not be directly visible, but is used for example by search engines to rank the content. It is common for misinformation to change dates, for example, to make old content look “new” again.
Two videos, one from Project Origin, the other from the Adobe-led Content Authenticity Initiative show the intentions and goals.
Project Origin (2020)
Source: BBC
Content Authenticity Initiative: Vision
Searching for a standard
As of spring 2021, there is a common goal and specific roles for the different partners. “Coalition for Content Provenance and Authenticity” (C2PA) aims to advocate and find support for an open standard. At the same time the different technology companies work on their individual solutions:
Adobe is working on an attribution tool, which could be added to Photoshop and other Adobe packages.
TruePic, a start-up from San Diego in the US, could have the most innovative. The company has developed software specifically to enhance and enrich content enabling checks of its integrity.
Microsoft describes the current approaches on a dedicated innovation website.
It is notable that Google is missing from the members, so far. The same is true for Apple and Facebook.
It might be that if all the big tech and content companies would join finding a compromise would become almost impossible. Instead, that is the assumption, the smaller, current group firstly wants to develop early suggestions and ideas.
Demos from Microsoft
Microsoft specifically has the most details yet how Project Origin could work. The company discusses current ideas on a webpage of the innovation department. They christened the technical approach AMP (Authentication of Media via Provenance).
Search for standard might take years
Agreeing on standards, specifically, might take years. While misinformation and content used for propaganda in many parts of the world are pressing problems. Finding common ground will depend on many details – and take time, specifically when there is a need for an agreed-upon technical standard, which is accepted worldwide.
One thing that is notable: All three projects and the entire coalition do not commit to a specific blockchain technology to store the information. It appears that the question is currently avoided – there might or might not blockchain tech in the backend.
Another problem is to find a technology that gets accepted by users and does not make media production more complicated. Adding metadata is a notoriously skipped activity in many fields of content production.
More info:
Microsoft Innovation: Exploring Project Origin https://innovation.microsoft.com/en-us/exploring-project-origin
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