WCEF’s Speakers on the Future of the Blockchain Economy

The World Crypto Economic Forum, a series of events supporting the global blockchain community, took part from 15 to 16 January in San Francisco, presenting the most influential speakers
25 January 2018   378

On January 15 - 16 of 2018, World Crypto Economic Forum, the event for blockchain community with a global network of entrepreneurs and developers in today’s fast-evolving blockchain economy, brought together over 1300 participants in San Francisco. We managed to talk with the speakers and asked them to share their views on the near future of the developing industry.

World Crypto Economic ForumWorld Crypto Economic Forum

Andrew Gaiziunas

Cofounder and CTO at Turbadium Inc.

Andrew Gaiziunas
Andrew Gaiziunas

- Blockchain will lower the barriers of entry for what have long been capital-intensive models such as manufacturing, mining, energy, financial services, and infrastructure projects, ushering in a new age of increased innovation and production. Not only closing the trust gap and allowing everyday citizens to collectively pool their resources, blockchains and decentralized ledgers provide the frictionless vehicle for those citizens to interact and participate directly in these large projects, with all participants sharing equally in the gains or losses.

We see crypto/blockchain leading to democratization of many entrenched and centralized models. The effects throughout the global economy will be comparable in scale to those of the Industrial Revolution, with the next five years resembling a condensed late 18th and early 19th century period in which industrialization brought us radically new concepts like steam power and machine tools.
 

Andrew Gaiziunas

Cofounder and CTO, Turbadium Inc.

- We believe in sound money and that currencies should be backed something tangible, and look forward to the day a truly asset-backed cryptocurrency begins circulation. The ideal basis of sovereign digital wealth is the production and assets of its citizens, not simply a fiat currency registered on a blockchain.

- Tokenization not only serves as a viable basis for a stable currency, but also unlocks equity in many traditionally illiquid asset classes without the need of structured repayment terms or associated costs of interest. A win-win for both the asset owners and individuals, the only losers in this scenario are high-cost, low-value financial institutions serving as middle-men to facilitate transactions and provide trust/governance. 

- Distributed Ledgers based on blockchain technology eliminate the need for many of these functions and allows individuals to participate directly with the asset owners. Once tokenized and placed on a blockchain, all parties play by the same rules and all members share the rewards of a system equally.

Many common functions of government could certainly be eliminated, primarily those regarding centralized authority of record and contractual enforcement in the short-term. Establishing technological ‘firewalls’ to keep certain segments of the economy and voluntary interactions between people ‘off limits’ from nation states could actually restore trust in governmental bodies, as their role would be limited to those serving its citizens.
 

Andrew Gaiziunas

Cofounder and CTO, Turbadium Inc.

Lindsey Maule

CEO and Managing Partner at Luna Capital

Lindsey Maule
Lindsey Maule

- In five years blockchain/DAGs (Directed acyclic graph) will be the underlying technology behind every major tech gaint and new upcoming companies. People will be using it without knowing. Everything transactional will be more efficient because blockchain or a more scalable project will be integrated into everything. 

I think once crypto is more simplified that most people in the world will own digital currencies. I also believe that probably all of the younger generation and will grow up on digital wealth.  DAGs claim to solve that; or improvements with the Ethereum protocol. Once scalability and a few other issues are resolved I can clearly see if being integrated into bigger companies. Possibly people will create tokens just for funding with actual transparency that it won't be super valuable and clearly a security. Banks are all creating their own tokens right now. 
 

Lindsey Maule

CEO and Managing Partner, Luna Capital

- Governments will just become rich too because they're taking crypto taxes and making it super complex. People may move to escape that or create offshore funds. 

Dean Patrick

ICO hedge fund manager

Dean Patrick
Dean Patrick

- A huge challenge in the ecosystem is the following: determining how to value the medium-of-exchange app tokens that have come to dominate the ICO market and have established themselves as a go to utility token for dApps.

When analyzed for market-cap calculations, Ethereum founder Vitalik Buterin argues that the use of an app-coin such as Filecoin’s token introduces an “implicit cost” to holders in the form of not holding an equivalent USD amount for example that is generalizable in its spend-ability.
 

Dean Patrick

ICO hedge fund manager

- Additional transaction costs, limited exchangeability, and high spreads are inflicted on members of an ecosystem using a single app-coin as a medium of exchange. These effects cumulatively lead to a potentially significant aversion to holding said app-coin which has detrimental effects on utility token market caps as shown using slightly variant macroeconomic equations for velocity of money calculations.

Patrick Palacios

CEO and founder at Appsolutely

Patrick Palacios
Patrick Palacios

- As crypto becomes a more prominent value exchange system, and with the advent of solutions and applications that make cryptocurrencies more accessible to the public, it will compete better with existing fiat systems in terms of how people transact. 

- Aside from the long-running goal of banking the unbanked through crypto, the blockchain is making it possible for each society or community to set transaction solutions that are tailor-made to their specific circumstances. The democratization of money is at hand, and blockchain allows us to keep our wealth and value away from corrupt agents in just about every setting.

The biggest challenge right now is the prevalence of bad actors who are interested in cryptocurrency for nefarious reasons. These bad actors give a negative perception to the whole community, harming those who do honest work. But we understand that this problem is always part of any community that experiences a fast boom, and sooner rather than later, the bad actors and the less-than-competent companies fall, while the worthwhile companies will rule the world.
 

Patrick Palacios

CEO and founder, Appsolutely

- Unlike the current globalization environment that only benefits the biggest players, the blockchain brand of globalization puts everyone on a more level playing field, as you can't really discriminate against code, as compared to other social cues like behaviors, races, and biases. 

- As blockchain promises a more trust-based society where we don't need all the middlemen we have now to verify the veracity of each deal, the government's role will transition away from being arbiter of truth. This frees up the government to actually provide human needs that even blockchain can't fulfill.

World Crypto Economic Forum brought together the best blockchain experts from all over the world, gathering members of global blockchain community, speakers, sponsors, media partners, moderators and hundreds of delegates, all of whom have contributed into making WCEF such a success!

Bitcoin Gold hit by Malicious Miner`s Double Spend Attack

An evil-minded miner efficiently made a double spend attack on the Bitcoin Gold network, making BTG at least the third altcoin to succumb to a network attack
23 May 2018   123

Edward Iskra, Bitcoin Gold director of communications first admonished clients about the attack on May 18, reporting that an evil-minded miner was using the exploit to steal means from cryptocurrency exchanges.The miner bought at least 51 percent of the network’s total hashpower, which provided them with temporary control of the blockchain. Gaining this much hashpower is extremely expensive — even on a smaller network like bitcoin gold — but it may be monetized in tandem with a double spend attack.

The attacker, after getting the control of the network, started depositing BTG at crypto  exchanges while also intending to send those same coins to a wallet under their control. Generally, the blockchain would resolve this by including only the first transaction in the block, but the attacker managed to reverse transactions as they had majority control of the network.

As a result, they were able to invest funds on exchanges and withdraw them again soon, after which they repealed the initial transaction. This way they could send the coins they had primarily deposited to another wallet. 

An address of bitcoin gold connected with the attack has got more than 388,200 BTG since May 16 (basically from transactions it sent to itself). All of those transactions were associated with the double spend exploit, the attacker could have stolen as much as $18.6 million worth of funds from exchanges. The last transaction was sent on May 18, but the attacker could resume it if they still have access to enough hashpower to reach the control of the blockchain.

Bitcoin gold’s developers recommended exchanges to resist the attack by reaching the number of confirmations acquired before they lended deposits to client accounts. Blockchain data displays that the attacker reversed transactions as far back as 22 blocks, allowing developers to advise raising confirmation requirements to 50 blocks.