Topic: DNotes 2.0 - Staking, CRISP Interest, DNotes Pay - page 314. (Read 148866 times)

Poloniex Announces Plans for Potential Bitcoin Turmoil

https://dcebrief.com/poloniex-announces-plans-for-potential-bitcoin-turmoil/

While it is hard to determine how this might be enforced outside of the United States of America, I'm sure it is still huge. I have been really amazed at two things regarding ICOs this year. Firstly how much money they have raised, and secondly, how little information many have provided. I have just grabbed the ICOs that have provided details and converted the amount they raised into the coin's current US$ value.

ICO	USD
Golem (GNT)	$163,467,000
Bancor（BNT）	$79,066,175
Status（SNT）	$59,784,634
Aragon	$54,821,250
GNOSIS	$49,837,500
vdice	$41,873,268
TenX	$39,870,000
Polybius（PLBT）	$30,673,271
Mysterium Network	$13,681,191
Cofound.it	$11,276,233
Rialto.ai	$10,000,000
Kibo Lotto (KIBO)	$6,565,220
Sphre（AIR）	$5,106,626
EncryptoTel	$4,429,212
Crypviser	$3,786,667
Skincoin（SKIN）	$2,623,247
Ethereum Link	$1,501,832
Adel（ADL）	$1,100,825
Returnbit (RBIT)	$29,679

https://www.ico-list.com/

That is a lot of investment people have made in ICOs, and I wonder how much information was provided compared to what is required by the SEC in a prospectus. This would include things like their financial plan, recognised risks, current competition, accurate employment history of managers, remuneration packages, and much more. The ICOs I've looked into often provided a vague whitepaper that was insufficient to be used as a technical guide. Their disclosure about management may have had a couple of names you could look up on LinkedIn, which then seemed to only contain circular links to other members. And I have never seen an account of how the money raised will be allocated and how much managers will be paid.

I really like the idea that I can invest in whatever I like and make my own choices about risks. But it seems clear to me by the dollar values in the above table that some consumers would benefit from protection. And this is where the big divide lies. The more people depend on governments to fulfil the role of parents, the less freedom we have. It is possible that this new report will enable prosecutors to go after people who have deliberately misled investors. I don't know if it will reach as far as non-US citizens, or if anything will come of it at all, but I do hope it is a step in the right direction.

As for the securities exchanges being required to register, this seems unworkable. I'm not sure if they understand that most of these are in the Etherium network and the code used in the DAO enables tokens from the ICO to be exchanged without an exchange being used.

My comments regarding what information has been disclosed do not refer to the ICOs listed above, since I have only looked at current and future ICOs in this regard. I am not stating that the ICOs listed above are bad, or good, investments.

SEC Issues Investigative Report Concluding DAO Tokens, a Digital Asset, Were Securities

U.S. Securities Laws May Apply to Offers, Sales, and Trading of Interests in Virtual Organizations

FOR IMMEDIATE RELEASE
2017-131
Washington D.C., July 25, 2017—

The Securities and Exchange Commission issued an investigative report today cautioning market participants that offers and sales of digital assets by "virtual" organizations are subject to the requirements of the federal securities laws. Such offers and sales, conducted by organizations using distributed ledger or blockchain technology, have been referred to, among other things, as "Initial Coin Offerings" or "Token Sales." Whether a particular investment transaction involves the offer or sale of a security – regardless of the terminology or technology used – will depend on the facts and circumstances, including the economic realities of the transaction.

The SEC's Report of Investigation found that tokens offered and sold by a "virtual" organization known as "The DAO" were securities and therefore subject to the federal securities laws. The Report confirms that issuers of distributed ledger or blockchain technology-based securities must register offers and sales of such securities unless a valid exemption applies. Those participating in unregistered offerings also may be liable for violations of the securities laws. Additionally, securities exchanges providing for trading in these securities must register unless they are exempt. The purpose of the registration provisions of the federal securities laws is to ensure that investors are sold investments that include all the proper disclosures and are subject to regulatory scrutiny for investors' protection.

"The SEC is studying the effects of distributed ledger and other innovative technologies and encourages market participants to engage with us," said SEC Chairman Jay Clayton. "We seek to foster innovative and beneficial ways to raise capital, while ensuring – first and foremost – that investors and our markets are protected."

"Investors need the essential facts behind any investment opportunity so they can make fully informed decisions, and today's Report confirms that sponsors of offerings conducted through the use of distributed ledger or blockchain technology must comply with the securities laws," said William Hinman, Director of the Division of Corporation Finance.

The SEC's Report stems from an inquiry that the agency’s Enforcement Division launched into whether The DAO and associated entities and individuals violated federal securities laws with unregistered offers and sales of DAO Tokens in exchange for "Ether," a virtual currency. The DAO has been described as a "crowdfunding contract" but it would not have met the requirements of the Regulation Crowdfunding exemption because, among other things, it was not a broker-dealer or a funding portal registered with the SEC and the Financial Industry Regulatory Authority.

"The innovative technology behind these virtual transactions does not exempt securities offerings and trading platforms from the regulatory framework designed to protect investors and the integrity of the markets," said Stephanie Avakian, Co-Director of the SEC's Enforcement Division.

Steven Peikin, Co-Director of the Enforcement Division added, "As the evolution of technology continues to influence how businesses operate and raise capital, market participants must remain cognizant of the application of the federal securities laws."

In light of the facts and circumstances, the agency has decided not to bring charges in this instance, or make findings of violations in the Report, but rather to caution the industry and market participants:  the federal securities laws apply to those who offer and sell securities in the United States, regardless whether the issuing entity is a traditional company or a decentralized autonomous organization, regardless whether those securities are purchased using U.S. dollars or virtual currencies, and regardless whether they are distributed in certificated form or through distributed ledger technology.

The SEC's Office of Investor Education and Advocacy today issued an investor bulletin educating investors about ICOs. As discussed in the Report, virtual coins or tokens may be securities and subject to the federal securities laws. The federal securities laws provide disclosure requirements and other important protections of which investors should be aware. In addition, the bulletin reminds investors of red flags of investment fraud, and that new technologies may be used to perpetrate investment schemes that may not comply with the federal securities laws.

The SEC's investigation in this matter was conducted in the New York office by members of the SEC's Distributed Ledger Technology Working Group (DLTWG) -- Pamela Sawhney, Daphna A. Waxman, and Valerie A. Szczepanik, who heads the DLTWG -- with assistance from others in the agency's Divisions of Corporation Finance, Trading and Markets, and Investment Management. The investigation was supervised by Lara Shalov Mehraban.

https://www.sec.gov/news/press-release/2017-131

https://poloniex.com/press-releases/2017.07.24-Our-plans-to-handle-potential-BTC-network-disruptions/?t=1&cn=ZmxleGlibGVfcmVjcw%3D%3D&iid=ba37a8fed0a0472a95be6a11f7feb7fc&uid=2306894348&nid=244+272699400

PoloniEx released some information on how they will be handling the upcoming bitcoin upgrades and potential split. To summarize, they are committed to protecting users coins and they are waiting to see what happens, if there is a split they will decide at that time whether they will support both.


We should know more clearly what's going to happen by the time we reach the difficulty re-target in mid August.

Thanks, TimMash. You laid out a very good opening case that can be examined from different prospective. However, being an entrepreneur with extensive experience in business and in management for over 45 years, I have concluded that there are no perfect systems for managing employees and business enterprises. Instead of always looking for the “best” solution I would focus on the “best” baseline to start from. From there, I focus on issues and problems; on specific solutions and turn them into opportunity for the success of the enterprise. In essence, that is what DNotes has been doing. We acknowledge that the technology is ingenious with positive world-changing potential but not without major challenges that must be resolved before mass acceptance of digital currency can take place. Neither can it meet or exceed the full functions of money as it stands.

Now, there are many different business models and just as many ways to reward and engage employees – including extreme CEO compensation as you pointed out. Leadership, best fitting employees, purposeful well-defined vision clearly articulated so that everyone can understand are among the contributors to business success. Blockchain technology and smart contracts can certainly be used to improve business process and incentivize employees.

In the case of DNotes Global, Inc. – it is a response to our conclusion that while our industry offers immense potential for job and wealth creation there are many challenges digital currency must overcome before it can gain mass global acceptance and truly become the future of money. Those challenges include the whole notion of a leaderless decentralized world hopeful to replace part of the centralized establishment. It is challenging and complicated and will take great leadership and relentless commitment with a dedicated team passionate about their mission.

I will be on the road shortly and will elaborate my points later. Stay tuned. 

LSEG Testing Blockchain Platform for SMEs

https://dcebrief.com/lseg-testing-blockchain-platform-for-smes/

It would be nice if we could meet and catch-up. Unfortunately, TeeGee just left and I am out of town this Friday. Perhaps we can meet another time. Have a great vacation!

Chase's post about the growing use of blockchain got me thinking about the future of business structures. Recently on a television show, I saw a restaurant that was going broke, filled with broken equipment, while owned and run by a man that seemed oblivious to his financial collapse as he drove his expensive car to his mansion of a house. If he'd just turned over a fraction of his income back into the business, he'd have been doing fine.

I've also watched as CEO and top-five executive pay rates have risen over the last thirty years. In America, the ratio between CEO and staff salaries for the top 500 public listed companies is around 70:1. This is partly possible because the public owners are not in a capacity to make decisions about how much remuneration is required to hang onto the talent that will give them the best returns on their investment. But it is also largely due to the fact that at this level, CEOs are able to exert an unreasonable level of influence over the people deciding or agreeing to their remuneration package.

At the other end of the scale, I've watched unions demanding higher pay rates and going on strike to force the issue while the company was a major player in a quickly contracting industry that was also suffering from massive price hikes in their required resources. This company predictably collapsed and went into receivership. If the staff and their unions hand been able to understand, or been trusting enough to believe, the full scope of the financial situation, they would still have jobs today.

Then I just heard this morning about a video game startup where the lack of central leadership or consensus resulted in the project not having a cohesive style or direction.

The possibilities opened up by blockchain technology that can process instructions is incredible. Distributed Autonomous Organisations enable the creation of entities that can operate in an environment of trust and equality. It means that individuals can benefit from the advantages of scale and community without loosing autonomy or becoming just another employee. But they also mean that it is possible to create entities that have everything a company needs but direction.

Some types of organisations can work really well without leadership or direction. A group of service providers can get a lot of benefit from an association, but gain little advantage and expose themselves to a lot of risk, if they are directed by a single leader. This is because their products vary considerably, and there is no single market to focus on.

But when the product that an organisation has to produce needs to be well planned, cohesive, and fit a well targeted and wide user base, the level of coordination required, the clarity of vision needed, requires a leader. I think that ultimately we will see the most successful organisations are those that use blockchain technology to profit share with all employees, establish consensus for suitable decisions, and publicly track all actions. But these organisations will also recognise the value of great leadership, and will pay what it is worth for it, but not the excessive amounts that many current business leaders choose to pay themselves.

I am very interested to see how DNotes2.0 develops and delivers on these ideals. And where DNotes Global Inc see the line between guiding a successful solution, and letting the owners of DNotes choose directions.

Sorry to say he is on the plane back home as we speak.

Nice! What's you're schedules like on Friday? It's the first day of my vacation and my flight out to Portland doesn't leave until 8:40p. Would be great to sync up if we can manage it!

Agreed, and it appears the blockchain use cases have evolved from everything on the blockchain to much more practical use cases. It will be interesting, we are following closely, as the need for blockchain increases, immutable decentralized data and smart contracts.

If you ignore the specific project names mentioned in this article (I don't follow any of them, so couldn't tell you one way or another if they will succeed), there are a lot of good points made.
"If there is one thing I tell my clients who are looking at blockchain for their businesses, it’s that the time is now." - A perfect fit for DNotes 2.0.  


Blockchain: The time is now!

As I wrote last December, I believe 2017 will be the year that blockchain gets “real”.

On a recent trip to New York I saw increasing evidence that this is so.

I was in Manhattan to visit clients and attend Consensus 2017, the world’s largest blockchain conference.

There was an incredible amount of excitement in the air – much of it due to the recent ICO and cryptocurrency bull market.

But there was plenty of substance too. From announcements like the record R3 funding, the Enterprise Ethereum Alliance tripling its membership and JP Morgan’s partnership with ZCash, to the demo of Blockstack’s new decentralized Internet browser or Toyota’s pioneering work in blockchains for mobility, you could see how this technology was making its way out of the lab and gaining toeholds in the real world.

This was not lost on my clients, of course. One of the questions I get most frequently these days is where does it go from here?

The six levers
 
While we do seem to be nearing some inflection point in blockchain, much remains uncertain and hard to predict.

To try and find some clarity, I have taken to analyzing near-term developments in blockchain technology in terms of six key levers I believe are needed to catalyze a full-scale breakthrough.

These are:

• First mover use cases. As only makes sense, first movers in this space have been focusing on the lowest-hanging fruit. We are seeing particular interest in areas like global payments, trade finance, automated compliance, and post-trade processing. With potential savings from efficiency gains of between 80 and 110 billion US dollars, we can expect some dramatic wins. It pays to keep track of how early successes are faring.
• Business networks and consortia. I believe the “end game” for blockchain will be as the backbone of large-scale, open, decentralized business platforms. A first step along this road is for companies to organize themselves into blockchain-based business networks and consortia. I don’t mean technology-oriented consortia like R3 or Hyperledger, but rather platforms around actual use cases. Ripple, for example, has built a blockchain-based direct settlement network with some 30 banks. Seven banks recently got together to form Digital Trade Chain, a project to build a blockchain-powered cross-border trade finance platform for small and medium-sized companies in Europe. Others can profit by observing how such early networks and consortia function.
• Technology convergence. Blockchain, of course, is only part of this picture. Tomorrow’s business platforms will be powered by a convergence of a number of key technologies, from big data and machine learning to edge computing and robotic process automation. A result will be a blurring of the lines between industries. It is important to understand how this blurring will transform the way we all do business.
• Decentralized business models. New, decentralized business platforms mean new, decentralized business models. While we have long talked about business model disruption, we are now starting to see it. Storj, for instance, has built the world’s largest decentralized digital storage platform on blockchain. Lykke is building a global, decentralized financial marketplace. Chronobank is doing the same with recruiting talent. Anyone looking at new models for their business should be aware of the approaches used by these pioneers.
• Tipping point. Success is often a question of timing, and it will be no different in this space. When can we expect large-scale breakthroughs? The tipping point for a new technology is generally when it approaches 15% of the market. To be a first mover you will want to be in position latest by then.
• Blockchain ecosystem Finally, a main driver of blockchain breakthrough will be successful collaboration within the blockchain ecosystem. Here is where the technology-oriented consortia like R3, the Enterprise Ethereum Alliance or Hyperledger play a big role, as well as industry specific consortia, associations, regulators and even central banks. Companies should be aware and actively manage their ecosystem landscape.

The time is now
 
I think these levers can be a good lens through which to try and make sense of what is going on in blockchain. They can also be used as bellwethers: paying attention to developments in these areas can provide indications of where and when significant breakthroughs could appear.

The important thing – at least in my opinion – is to keep your eyes open and start to get active.

If there is one thing I tell my clients who are looking at blockchain for their businesses, it’s that the time is now.


Oops! Forgot the link -  https://www.oliverbussmann.com/blockchain-the-time-is-now/

Currency stability is essential in commerce – whether domestic or international where extended payment terms are involved. For example, it could be net 10 days (pay me in full within 10 days), or net 30 days, or Letter of Credit at sight (Payable within days with bill of lading verified by third party) Extreme fluctuation of currency value would be a nightmare in payment settlement, rendering the subject currency a poor medium of exchange. This includes Venezuelan Bolivar, Bitcoin, DNotes, and all other digital currencies in their current states. Hence, digital currency is not gaining traction as a medium of exchange. The bulk of digital currency transactions involve speculative trading and casino gambling.  Unless this problem is solved to provide currency stability mass acceptance of digital currency is not achievable.

Yet the benefits of a trustworthy stable digital currency conveniently accessible to everyone worldwide is immensely valuable to the citizens of the world. It is DNotes’ vision to make this happen. That is what I think about every day. To me, Venezuela’s currency nightmare is just another reminder why DNotes is a currency with a purpose to help change the world. We have a big bold agenda that goes beyond DNotes the digital currency. There is a gaping hole between the establishment centralized world and the new decentralized world. Follow us and learn how we are going about solving multiple problems confronting our industry. We view this as a generational opportunity in job and wealth creation. It is an equal opportunity for the rich and the poor irrespective of where they are located.

I just hope that the poor people with loans were on fixed interest rates. US$40 posted in for doing some online work overseas, an exchange in the back of bar, and then go pay the loan off.

I can't begin to imagine how this is all being managed on a practical level. If you're running any sort of import or export business, it would be a real nightmare. Businesses often have long invoice payment periods, like 30 days at end of month. So you import a box of widgets from Brazil for 1,000 bolivar, wait a month, then sell the box to Argentina for 2,000 bolivar, then pay your invoice. And with official exchange rates so completely out of touch, it makes everything much worse, while encouraging a huge currency black market.

I imagine the world transition to cryptocurrency will continue it's slow and steady pace for a while yet. But once adoption rates pass a critical mass, there will be a tipping point. This is likely to continue to be a gradual process, but it may also happen very quickly. If the big banks and finance industries predict that all fiat currency will be worthless in less than a decade, they will all get out as fast as they can, because every day's delay costs them money in a market that has no hope of recovery.

If the tipping point goes this way, we'll all be turning to the history of Venezuela and similar events for guidance.

 It is sad to see the poor people of Venezuela going through such hardship. Bad political leadership and foolish political agendas have profound consequences and, in the end, the citizens paid a horrendous price for such injurious behavior.

Additionally, if creating money out of thin air is not bad enough assign a value that is substantially higher in worth than what the free market is willing to exchange for - "That’s creating an illusion for foreigners observing the country’s stock market, which appears to be valued at $2.57 trillion -- bigger than Germany’s, France’s, India’s or Canada’s -- but is worth only $3 billion based on the black-market rate."

Unfortunately, we live in a world full of "illusion", including our very own crypto-world. Be cautious when investing in the digital currency space. It pays to do your home-work. Research it well and verify claims that sound too good to be true. Losing one's live savings to bad political leadership, failed projects, or out-right scams are all just as bad to one's financial health. 

There is no let-up for the poor people of Venezuela. If people here had to go through even a little of what is going on there, everyone would be using digital currency already.





The Meltdown in Venezuela's Currency Is Deepening

https://www.bloomberg.com/news/articles/2017-07-21/the-meltdown-in-venezuela-s-currency-is-deepening

Excellent article.

"The content of this article aims to touch on some of the important topics which need to be addressed if we expect smart regulation to protect the consumer, rather than burdensome regulation that will stifle growth and innovation."

Regulation is inevitable, and uncertainty in future regulation may be just as stifling as over regulation. Smart regulation should be clear in its intention to help and protect people. It will be critical to protect people from those who would do them harm intentionally and help reduce the chances of accidental harm, without impeding peoples freedom to take risk and without creating an environment where only some can benefit from this amazing new industry.

Some Japanese Retailers Could Suspend Bitcoin Use

https://dcebrief.com/some-japanese-retailers-could-suspend-bitcoin-use/

Cryptocurrency is in Dire Need of Appropriate Exchange Regulation

http://dnotesedu.com/2017/07/cryptocurrency-dire-need-appropriate-exchange-regulation/

Cryptocurrency has a huge problem that has netted investors well over a billion dollars in losses, and that is lack of accountability among exchanges. There has been countless exchanges cease operations and flee with customer funds, as well as more elaborate schemes. Since exchanges are such a vital component to the interchangeability of cryptocurrency, it’s important that we have some oversight to prevent exchanges from engaging in questionable or illegal practices, which can have a serious impact on the investments we are trying to protect. The content of this article aims to touch on some of the important topics which need to be addressed if we expect smart regulation to protect the consumer, rather than burdensome regulation that will stifle growth and innovation.

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Nicely done TimMarsh! Intuitive layout.

We will assume Coinbase/PoloniEX, at least for the first iteration. There are other options available, but in the US these are the two most likely choices.

We can also focus on strictly purchasing DNotes and storing them at the DNotesVault.

Is anyone interested in working on any of this for a bounty?
-Go through the entire process and document all the steps. Including screen shots (with blank forms, or blacked out personal information).
-Create a document, organize the instructions, create a title for each major step (Examples: "Create Coinbase Account", "Verify Your Identity", "Link Back Account", "Deposit Funds").
-Write the instructions, include screen shots for each step.
-Take the document and turn each step into individual instructional videos.