Ep. 51 Hodl Hodl Open Sourcing to Combat KYC
On this episode of the unhashed podcast: Iran and Inner Mongolia have both made official statements about the practice of crypto mining within their jurisdictions, but would Bitcoin be better off without such recognition? Bitpay will soon accept Ethereum. It doesn’t matter though because BTC Pay Server will make them obsolete anyway. And...Ruben made a post on the Bitcoin Mailing List about his proof of work fraud proofs; but can he prove it?
Weekly News Wrap Up:
On September 16, 2019, BTC.com, Bitmain’s mining pool, lost its years’-long first place position to another China-based mining pool, Poolin, whose real-time hashrate read 13,378.00 PH/s at one point. BTC.com, supported by the advantages of Bitmain’s bitcoin mining machines, has been the largest bitcoin mining pool for years. In the first half of 2018, the hashrate of mining pools under Bitmain (with BTC.com, AntPool and ViaBTC included) was approaching the dreaded 51 percent threshold needed to stage a 51 percent attack. However, the bitcoin mining hashrate has become more decentralized as smaller pools made gains since the beginning of 2019. The rankings of mining pools saw a significant shift, particularly over the second half of the year, with Poolin moving to the second and even first place position at times.
Iran’s Ministry of Industry, Mine and Trade is close to finalizing a document that paves the way for legitimizing cryptocurrency mining for local and foreign citizens in the foreseeable future. In early August 2019, Iranian President Hassan Rouhani’s cabinet issued a directive that recognized cryptocurrency mining as an industry for the first time and defined general tenets. Among other things, the directive obligated the ministry to come up with a framework based on which cryptocurrency miners could start working transparently. Previously, those miners had been operating without any state supervision.
China’s Inner Mongolia Autonomous Region has recently issued a notice demanding a cleanup of bitcoin mining operations within the region where it is concentrated. As local cryptocurrency news outlet ChainNews reported on September 14, 2019, five departments of Inner Mongolia’s government have issued a notice to rectify the bitcoin mining industry within the province.
Payment solution BitPay will soon support ethereum, the second-largest cryptocurrency by market capitalization, according to an announcement from the company. With BitPay, subscribing businesses will be able to accept payments in bitcoin, bcash and ether, along with a handful of stablecoins.
Hodl hodl is open sourcing their source code, encouraging forking to combat regulation. “We think KYC/AML does more harm by exposing law-abiding users to fraudsters and criminals,” Snitko told CoinDesk. “The information and documents users upload to exchanges has been stolen many times in the past. It also does very little to prevent actual money laundering and criminals from using those services. They always find ways.”
Ruben made a post on the Bitcoin mailing list about what he calls Proof-of-Work fraud proofs. The concept can allegedly work without a soft fork, and is an improvement over regular SPV because it allows SPV nodes to reject the longest chain if it’s invalid.
Number go sideways
One Final Note:
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