Particl and Litecoin to launch cross-chain atomic swaps

Particl teams up with Litecoin to work on cross-chain atomis swaps
31 July 2017   1103

Particl and Litecoin are implementing cross-chain atomic swaps. The community's reaction seems to be a bit divided regarding the development. 

What is cross-chain atomic swaps?

Blockchain

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

Cross-chain atomic swaps is the technology that allows two people holding tokens on two different blockchains to trade directly – and instantly – without the risk of one party running off with the other's money before the trade is complete. 

Thus, being able to exchange between different cryptocurrencies without exchanges getting involved is significant. Some people could argue this can be done already through decentralized peer-to-peer software, however, those tools are incredibly difficult to use for the average person on the street. Even advanced users find it too much hassle due to low trading volumes. 

On the contrary, the developers can integrate this functionality into wallets directly, allowing for immediate exchanges between currencies.

The community's reaction

Litecoin

Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency

In this particular case, users could instantly swap between Particl and Litecoin whenever needed. Particl's "part"of the community seems to be pretty excited about the news:

Particl and Litecoin to work on cross-chain atomic swaps The pic from Reddit.com

However, the response from the Litecoin community is less positive.

Thus, some users do not see any benefits from the development. It seems there are some harsh feelings toward the Particl team. It does appear some people blame the team for shutting down ShadowCash altogether. Additionally, one user claims how the team pumped “the shit out of” SDC and then crashed the market before killing the project.

How this Particl-Litecoin project will really turn out remains to be seen.

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   29

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.