Tendermint to Launch Cosmos

Work on the project, designed to ensure compatibility of different blockchains has been carried out over the past three years
15 March 2019   351

Team of Tendermint Inc. officially announced the launch of Cosmos Hub, the first of the Proof-of-Stake blockchain series, which will become part of the Cosmos ecosystem in the future. Work on the project, designed to ensure compatibility of different blockchains - primarily Ethereum and Bitcoin, has been carried out over the past three years.

Representatives of Tendermint note that at the moment, users cannot exchange tokens between blockchains or otherwise connect Cosmos Hub to third-party blockchains at any time - for this, validators must vote to activate Inter-Blockchain Communication (IBC).

In the comments of CoinDesk, Tendermint Director Zaki Manian noted that the software development kit (SDK) presented in February 2018 is already used in the cryptocurrency industry, in particular, by the Binance exchange.

He also said that another important element that will help "at a fundamental level to remove obstacles to innovation" is the underlying Tendermint Core consensus mechanism, Cosmos Hub.

We want to take the blockchain development cycle from idea to implementation down from years to months. This is how we’re trying to transform the blockchain space. Out of all these building blocks, [you’ll be able to compose] an entire … open system of finance that operates to scale and can be composed of individual, specialized chains that do different things.

Zaki Manian

Director, Tendermint

Transactions with Cosmos ATOM own tokens are not yet available to users. These tokens will serve as a kind of collateral for validators, and they are currently used as a mechanism for choosing Cosmos Network membership.

As soon as the system itself and the set of validators are recognized as fairly stable, tokens holders will be able to vote for the start date of the ATOM transfers. After that, another vote will be held regarding the connection of new blockchains to Cosmos Hub and the launch of swaps between raptocurrencies and non-interchangeable tokens.

Security of Cosmos Hub is currently provided by about 70 validators. Also at this stage, all rewards are paid in ATOM, but in the future other cryptocurrencies can be used for this, in particular, Bitcoin or Ethereum

Bitcoin to be an Asset, - Israeli Court

Judge Sh. Bornstein ruled that BTC is an asset, not a currency in a legal disput between trader and local tax authority, which wants him to pay $830k profit tax
22 May 2019   78

The central district court in Israel in the framework of the case of the founder of the blockchain-startup against the tax service identified Bitcoin as an asset subject to capital gains taxes, Globes reports.

So, in 2011, the creator of DAV.Network, Noam Kopel, acquired bitcoins, which he sold two years later, making a profit of 8.89 million new Israeli shekels ($ 2.29 million). Then Kopel entered a legal dispute with the tax service over the nature of the first cryptocurrency: he believes that it is a foreign currency, and the authorities insist that it is an asset.

Judge Shmuel Bornstein stressed that Bitcoin may cease to exist and lose to another digital currency, therefore, it cannot be considered a currency, especially in a tax context.

Thus, the court ordered Kopel to pay taxes in the amount of $ 830,600, as well as legal costs of $ 8,306. However, the defendant may still appeal to the Supreme Court.

Back in December last year, the Israeli tax service announced that it intends to fight with deviationists from the cryptocurrency sphere. Cryptocurrency holders in the country are subject to capital gains taxes (25-30%).