Dutch National Bank: Blockchain cannot match with Banking

Dutch National Bank stated in its recent report that the present infrastructure of blockchain technology is yet not ready to contest with banking system
11 June 2018   615

Recently, DeNederlandscheBank (DNB) carried out experiments utilizing the decentralized ledger technology. The research stated that the most substantial shortcomings of the technology are insufficient because of the high energy consumption, combined with the lack of complete certainty about making a payment.

Nevertheless, it pointed out that these disadvantages will be wagered with financial markets being better equipped to protect against outside attacks. Upon the experimentation phase, DNB deployed a project, called Dukaton, and studied 4  prototypes using distributed ledger technology (DLT) since 2015. This experimentation had a dual aim: gathering knowledge relatively to the technology and testing the potential of blockchain for improvements in payment and securities traffic.

The first prototype included a Dukaton constructed on Bitcoin’s protocol, featuring an exclusively-built blockchain. The Dukatons were made decentrally on 5 separate laptops through long-term calculations. Parties that confirmed and verified the transactions gained a reward in the form of monetary benefits.

The second prototype created the Dukatons in a much less energy-consumptive manner. Although, in this instance, the Dukatons were built based on a trusted third party that published them, instead of Bitcoin. This party would receive all the Dukatons, while the parties validating the transactions to be put into blockchain would only get a transaction fee.

The third prototype involved a centrally designed Dukaton, excepting the Bitcoin software but with a self-constructed electronic wallet, that kept the required cryptographic keys for security. In the result, this prototype served as a base for the fourth prototype to analyze the profitability of DLT for financial market infrastructure.

These prototypes show that the blockchain solutions tested currently cannot meet the high demands of financial market infrastructures (FMI). Requirements for FMIs are safety, reliability, efficiency, payment finality (legal security), authorization, resilience, availability, capacity, scalability, costs and sustainability.
Dutch National Bank
Report

Finally, DNB claimed that the blockchain technology is exciting and promising. DNB will keep on investing in the technology to use its full potential.

US Authorities to Sell $4.3M Worth Seized BTC

As reported, the Bitcoins were seized during different federal investigations
18 October 2018   96

The US Federal Penitentiary and Marshals Service has announced an auction, during which 660 Bitcoins will be sold, previously confiscated by law enforcement agencies. The current market value of the coins put up for sale is about $ 4.3 million, CoinDesk reports.

Bitcoins offered for sale were seized during federal criminal, civil and administrative investigations.

The auction will be held on November 5, and to participate in it, you must register no later than October 31 and make a deposit of $ 200,000.

The trades will be divided into two parts and include the sale of six blocks of 100 BTC and one more block of 60 BTC. Auction participants will not be able to view other people's rates or change their own.

The Office clarified that part of the assets put up for auction includes Bitcoins, which were seized during the recent investigations into the cases of the traders Teresa Tetley and Thomas Mario Costanzo. Teresa Tetley was sentenced in July to a year in prison on charges of trading in cryptocurrency without the necessary license and laundering money obtained from drug trafficking.

The Marshals do not report which part of the bitcoins seized from Tetley and Costanzo is put up for auction, however, it was previously known that 40 BTC were withdrawn from the first, and 80 BTC from the second.

Two previous major auctions for the sale of confiscated bitcoins were held in the United States in January and March of this year. In the first case, 3813 BTC was sold, in the second - 2170 BTC.