BlockTower Capital's hedge fund raises $140m

Investors of the American cryptocurrency hedge fund BlockTower Capital were Union Square Ventures LLC, Andreessen Horowitz and others
05 January 2018   310

The rapid growth of bitcoin and altcoins last year coincided with the launch of futures, which allow investors to work with cryptocurrencies in regulated markets. Another evidence of the penetration of bitcoin into the world of traditional finance can be the emergence of a large number of crypto-currency funds. One of them has already attracted $ 140 million.

According to Bloomberg, the investors of the American fund BlockTower Capital were Union Square Ventures LLC, Andreessen Horowitz, as well as several venture capital companies and companies for the trust management of family capital. Recently BlockTower notified potential investors that since January 1, the collection of funds within the framework of the main fund has ceased.

In addition, Michael Buchella, former vice-president of Goldman Sachs Group, joined the fund's team as head of business development.

According to Morgan Stanley, more than 100 funds are already working in the crypto-currency area, under management of which there are assets worth $ 2 billion. Large companies, such as Goldman Sachs, also take part in this process, providing their clients with clearing services for crypto-exchange contracts.

Hedge Fund Research has launched an index that tracks the performance of funds working in this area. It was found that in November the yield of funds investing in crypto-currencies and the blockchain-company amounted to 1,500%, while the profitability of funds, whose investments are limited to digital assets, exceeded 1,600%.

Recall that in December BlockTower put a million dollars to the fact that before the end of this year, the bitcoin rate will reach $ 50,000.

Bank of China Filed a Patent to Scale Blockchain Systems

Bank of China has filed a patent application for a process able to scale blockchain systems  
23 February 2018   95

According to a document released by China's State Intellectual Property Office (SIPO) on February 23, the application was invented by Zhao Shuxiang and first submitted on September 28 last year.

The application states that instead of letting a new block store transactions from its previous one, a data compressing system could be used to pack transactions from multiple blocks into what the patent calls a "data block."

For example, when the system receives a request to compress transactions from block 1 to 1,000, it causes a new data block to be formed and temporarily hosted on a different storage system. Then, the system will run the packed data through a hash function with a hash value. After that, the compression system will attach labels in order to identify blocks on the blockchain.

With the use of the described method, the patent claims a reduction in the amount of the data stored in new blocks as transactions mount in a blockchain while ensuring that data from all previous transactions will still be tamper-proof and traceable.

At the moment, the patent in the review process.