Canadian crypto exchange defies fentanyl epidemic

The approach assumes inclusion of more regulations into the platform that is by design anti-regulation
06 March 2018   369

Fentanyl issue became an international epidemic: 66% percent of overdose deaths in the US hold the drug accountable, while in Canada it is responsible for 922 overdose deaths in a year. Fentanyl is a synthetic drug that is 50 times stronger than heroin. Canada based virtual currency exchange Einstein proposes to form an alliance with other startups to establish a watch and maintain a blacklist of the digital wallets that are indicted in dealing with fentanyl and similar activity.

We would do a blacklist of wallets as our giveback [to society].

 

Christine Duhaime

Chief anti-money-laundering officer, Einstein

The initiative is supposed to start in Canada and the US with the perspective of making a global blacklist. Although a success of this enterprise would certainly improve the cryptocurrency overall reputation, Canadian law in particular sees a risk of violating the privacy by enacting such legislation. The idea of compiling a blacklist technically feasible because in most cases fentanyl dealers are not that bright to apply sophisticated anti-tracing methods such as changing wallets or tumbling coins.

Cryptocurrencies need government regulation to deter price manipulation and related wrongs, but the absence of of such regulation is one of the biggest reasons that investors buy into cryptocurrencies in the first place.

 

Michael Gokturk

CEO, Einstein

But unfortunately Einstein is too tiny of a player to tackle this issue solely on its own.

7 Accounts blocked by EOS BP without Going an Arbitration

EOS is facing another issue just days after its mainnet activation, as the newly elected block producers have frozen 7 EOS accounts on suspicion of being stolen
19 June 2018   49

The backlash began as the block producers did go over arbitration, an integral part of the EOS’s governance system. The critics are certainly questioning the credibility of the project. Jackson Palmer, the creator of Dogecoin and a well-known person in the blockchain industry, questioned the very governance process constructed by EOS and the role of EOS Core Arbitration Forum (ECAF).

The structure of EOS’s governance has been parted into 3 distinct groups - block producers, arbiters, and token holders. This separation resembles the executive, constituency, and judicial, of any governed system respectively. 

On 17 June 2018, the top 21 Block Producers unanimously agreed to protect property that may have been compromised through phishing attacks or other scams where member’s private keys were compromised. The EOS911 initiative was created by EOS42 as a way to prevent victims of private key theft from having their tokens lost once the 72-hour unstacking period ended following the EOS Mainnet Launch. Once that period ended, the thieves would be free to transfer the tokens wherever they’d like, rendering futile any recourse available to the community at this time.
EOS New York, in their recent post

So, in this case, the block producers did not go with the arbitration, rather they only conferred with them. Then the post added:

Foreseeing the process that would be required to act, EOS New York, on a call with BPs and BPCs, requested an expedited review of the merits of the case from ECAF (EOS Core Arbitration Forum) who was also on the call. The idea was that if ECAF found merit in the evidence provided, a formal ruling from ECAF would ask the BPs to “freeze” the accounts in question until such time that a thorough and formal review of the claims could be completed.
EOS New York, in their recent post

This is not the first problem EOS is facing amid its mainnet activation, as within 48 hours of that, the network suspended because of some bug. Though the error only led to a 5-hour network blackout, that is surely not something the team would have expected.