New algorithm by AMIS handles more transactions-per-sec

The Istanbul BFT (Byzantine Fault Tolerance) Consensus Algorithm was released by AMIS Technologies
06 July 2017   2229

On July 4, AMIS Technologies, a blockchain infrastructure development Taiwan company, announced a new Ethereum-based consensus algorithm.

Ethereum

Is an open-source blockchain-based distributed computing platform featuring smart contract functionality, which facilitates online contractual agreements 

The algorithm is a major breakthrough in the consensus algorithms for Ethereum and it will be incorporated into J.P. Morgan's private Ethereum-based platform Quorum. As the developers claim, it will allow the platform, and any other platform that uses the algorithm, to handle more transactions per second.

The collaboration between AMIS and J.P. Morgan's private Ethereum-based platform Quorum The collaboration between AMIS, J.P.Morgan and the Ethereum community

Blockchain

Distributed database that is used to maintain a continuously growing list of records, called blocks

Alex Liu, CEO of AMIS, contrasted the classic Proof-of-Work method with the new protocol, arguing that "compared to Proof-of-Work (‘mining‘) that is currently in use in many blockchains worldwide, PBFT represents an important step forward in many ways" as "it ensures settlement finality, it speeds up settlement time to under 1 second from the current tens of seconds to tens of minutes, and it reduces energy consumption dramatically". According to Alex Liu, "for the consortium blockchains that most financial institutions are looking to deploy, PBFT represents the only way forward in consensus algorithms."

The algorithm will make Quorum more accessible to institutional users, by introducing PBFT (Practical Byzantine Fault Tolerance), which can scale to their needs by handling a greater transaction load. Go-ethereum client's pluggable consensus engine, a model that is adaptable to different consensus protocols, made it possible to bring together the PBFT protocols alongside Proof-of-Authority consensus, allowing for wide adoption among various application scenarios with differing practical needs.

Julio Faura, head of blockchain R&D at Banco Santander and chairman of the board at EEA , explained that "this is significant advancement in providing enterprises a range of 'pluggable' consensus algorithms, which is a core objective of the EEA". He also added that they are "proud to see EEA members such as AMIS not only contributing in such a meaningful way, but also in collaboration with other members such as J.P. Morgan".

Julio Faura went on to say:

Enterprise adoption of Ethereum has never been stronger, and is getting stronger everyday through efforts like these. 
 

Julio Faura
Chairman of the board at EEA and head of blockchain R&D at Banco Santander

Thomas Hu, CEO of Kyber Capital, one of AMIS's early investors, called this collaboration between AMIS, J.P. Morgan, and the Ethereum community "a great testament of the capability of AMIS and the Ethereum community to meet the mission-critical demands of global financial institutions". He also mentioned that it "establishes a new benchmark for strategic collaboration and co-creation between financial institutions and FinTech startups in global blockchain innovation."

Given that there are many consensus models, the Istanbul BFT Consensus Algorithm would be more desirable to institutions that do not want to use a Proof of Work-based consensus algorithm to confirm blocks.

AMIS continues to work with fellow EEA members including J.P. Morgan, Fubon FHC, and Taishin FHC to develop blockchain applications.

Circle to Move Exchange Operations Offshore

The decision was made due to regulatory uncertainty in the United States and now the majority of users will be served by Bermudas unit
23 July 2019   86

The majority of Poloniex users from outside the US will now be serviced by a new unit of this cryptocurrency exchange, which opens in Bermuda, the platform operator, Circle, said on Monday, July 22.

The company said the decision was made due to regulatory uncertainty in the United States. The work of already existing divisions of companies in the United States themselves, as well as in Ireland, the United Kingdom and Hong Kong, will continue.

Representatives of Circle note the advanced and extremely clear legislation in Bermuda, which opens up opportunities for the rapid development of innovations in the field of cryptocurrencies, and for business promotion.

It is based on the Digital Asset Business Act (DABA), adopted in 2018, which provides full control and supervision of financial services related to cryptocurrencies, including the issuance of digital assets, the purchase and sale of coins, exchange transactions, and custodial services.

According to the aforementioned company law to operate in Bermuda, it is necessary to obtain a license, and as Circle reports, today it has become the first large cryptocurrency company in the world to obtain such a Class F (full) license.

As a result, we’ll be able to deliver new innovations, including asset listings and trading services, to global customers while also staying true to our commitment to compliant, well-supervised operations and customer protections.
 

Circle Team

In the commentary, CoinDesk Circle CEO Jeremy Allaire said that over 70% of Poloniex’s entire customer base accounted for overseas users.

Europe and Asia are both pretty significant markets for us in particular. USDC stablecoin is particularly popular with institutional Asian investors. The lack of regulatory frameworks significantly limits what can be offered to individuals and businesses in the U.S.
 

Jeremy Allaire

CEO, Circle

It was precisely the lack of clear regulation that forced Circle to dismiss about 30 employees in May, and as Jeremy Allair has now stated, the company plans to hire approximately the same number of new people over the next two years, who, however, will get other roles.

The project to establish a new international operations hub for our market, exchange and wallet services, was a major project. It took a long time working with the Bermuda government and the Bermuda Monetary Authority.
 

Jeremy Allaire

CEO, Circle

The head of Circle also said that a greater variety of assets will become available to international clients of Poloniex, and the exchange can expand the range of financial services that it cannot offer in the United States.

What kind of products and services in question, Allair did not specify, adding only that users can expect more opportunities for revenue. At the same time, he mentioned the existing stacking services for Cosmos and Stellar.