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Bitcoin Fans Say Cryptocurrency Tokens Are the Future of Tech Funding – Fortune

A pile of Bitcoins are shown here after Software engineer Mike Caldwell minted them in his shop on April 26, 2013 in Sandy, Utah. Bitcoin is an experimental digital currency used over the Internet that is gaining in popularity worldwide. George Frey Getty Images

Ever since Bitcoin first appeared on the scene several years ago, fans of the cryptocurrency have been searching for a way to apply the idea that might capture the public imagination and broaden the use of the technology beyond just geeks and programmers.

Now, some believe that application has appeared with the rise of the "token" economy, in which companies or startup ventures fund their operations by handing out units of cryptocurrencies. Some companies have even done what are known as "initial coin offerings" or ICOs, in which they distribute tokens instead of shares to investors.

The cryptocurrency market is seen by some as a bubble with hugely inflated prices. Some observers say bitcoin and other similar ventures are similar to Linux , an open-source alternative to Microsoft's Windows operating system that has never really achieved mainstream success.

But entrepreneur and investor Balaji Srinivasan, a partner at Silicon Valley venture capital firm Andreessen Horowitz, believes that token-based systems "may eventually create and capture more value than the last generation of Internet companies."

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In an essay published recently on the blogging platform Medium, Srinivasan and his partner Naval Ravikant, co-founder and CEO of a popular online VC community called AngelList, said they believe the token economy has the potential to become "a Kickstarter on steroids."

The two men, both of whom have been investing in bitcoin-related technology for several years, argue that using tokens as a financing option has the potential to improve the liquidity options that companies have by several orders of magnitude, as well as increasing the size of the available audience that might want to invest in such ventures.

All of this is possible because of an explosion in the cryptocurrency market over the past few years, they argue, in which Bitcoin has survived internal strife but also given birth to alternative currency systems and platforms such as Ethereum.

Initial coin offerings or ICOs are one way of using these new currencies, Srinivasan and Ravikant say. Canadian messaging-app maker Kik recently announced that it is launching its own cryptocurrency called Kin, and plans to offer units of it to supporters through a crowdfunding campaign. The currency is based on Ethereum's blockchain technology.

Kik plans to issue 10 trillion Kin tokens to developers and users via a separate non-profit foundation called the Kin Foundation, which will ultimately hold 60% of all the Kin tokens and be run by a group of independent directors.

Srinivasan and Ravikant warn that some uses of cryptocurrency tokens, including some ICOs, may be subject to regulation by governments if they are seen as equivalent to doing a traditional equity offering or IPO, in which investors receive shares of the company. But they argue other uses of tokens for crowdfunding could essentially be unregulated.

Token supporters say they aren't really equity but more of a digital IOU, which entitles the holder to redeem their tokens in return for access to a platform like Ethereum's.

That access has value because it can be used to generate Bitcoin-style currency through a computer-intensive process known as "mining," and those coins can in turn be exchanged for other more familiar currencies like U.S. dollars. One bitcoin is currently worth about $2,300.

Some skeptics say token-based fundraising has the potential to turn into a huge boondoggle if it is unregulated, with unwary investors being fleeced of their savings with little to show for it.

Ravikant and Srinivasan, however, argue that tokens will allow companies to raise money much more quickly for new ventures than existing systems do, and will also allow for startups to build valuable services without having to rely on advertising as their only revenue source.

Large technology companies like Google and Facebook offer "have sometimes come under fire for making billions of dollars while early adopters only receive the free service," their essay says . "After the early kinks are worked out, the token launch model will provide a technically feasible way for tech companies to spread the wealth and align their user base behind their success."

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Japan’s BITPoint to Add Bitcoin Payments to Retail Outlets … – Bloomberg

BITPoint Japan Co., the company behind Peach Aviation Ltd.s move to let travelers use bitcoin to pay for tickets, is planning to give hundreds of thousands of Japanese retail outlets the ability to accept the digital currency.

Were holding discussions with a retail-related company, Genki Oda, BITPointspresident, said in a recent interview. By going through a company providing payment terminal services to shops, we have the possibility of increasing its use at one stroke.Its easier than talking to lots of individual retailers.

Photographer: Akio Kon/Bloomberg

BITPoint is joining a flurry of companies embracing regulations, enacted in Japan last month, that recognize digital currencies as a form of payment. That has helped to make yen trades one of the worlds largest transaction pools, exceeding Chinas pole position at the end of 2016, according to Oda. Bic Camera Inc., one of the countrys biggest electronics retailers, began accepting bitcoin at two stores in Tokyo last month.

Were also talking to a big convenience store operator about using it, said Oda, 36, who also runs BITPoint parent Remixpoint Co., which had a market value of about 21 billion yen ($189 million) on Friday. He said hes aiming to make an announcement by early next year.

The shares of Remixpoint rose as much as 18 percent to their daily price limit. Last week, Remixpoint said it will convert debt issued to BITPoint into equity, raising its ownership in the subsidiary to 97.7 percent.

Bitcoin, which debuted eight years ago, is gaining wider use as a way to pay for goods and services, and lets people transact without oversight from governments, regulators or central banks. The virtual currency has been rallying against the dollar and other fiat currencies and was trading at $2,210 on Monday, near record highs.

While BITPoint operates as a bitcoin exchange, its pushing to promote the use of the cryptocurrency in stores and other retail outlets, instead of as a speculative instrument. The company currently has ties with tens of retailers and plans to expand that number, Oda said.

Photographer: Akio Kon/Bloomberg

A change in Japanese law on April 1 formalized rules around anti-money laundering and put in place standards for security and audits. Restaurant booking site Gurunavi Inc. will start letting diners pay with bitcoin later this year, the Nikkei newspaper reported last month.

Its funny how the whole narrative of bitcoin being risky or dangerous has changed, and it is now seen as a form of pride to regulate and embrace it, said Thomas Glucksmann, head of marketing at Hong Kong-based bitcoin exchange Gatecoin.

Asked about the recent climb in bitcoins value, Oda said hes wary of the sudden jump and doesnt think its sustainable. At the same time, Japanese investors and day traders are taking a serious look at bitcoin as an asset class, thanks to the new regulations, he said, adding that several large foreign exchange brokerages will begin bitcoin trading in the coming months, boosting volumes.

Still, its unclear whether bitcoin payments can become more than a marketing gimmick. The biggest hurdles include long network confirmation times and high transaction fees. While many bitcoin community members rallied around a new proposal last week to fix the problem, deep differences within the group have led to several similar solutions falling through since 2015.

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Billion-Dollar Messaging App Kik to Launch Ethereum-Based … – CryptoCoinsNews

Kik Interactive, the creator of the Kik social mediaplatform, plans to launch a cryptocurrency on the Ethereum blockchain called Kin to allow people to use a wide range of digital services, the company announced. The Kik chat platform is free and is used mainly by teenagers.

Ted Livingston, Kik founder and CEO, told Reuters Kik will be the first social media app to have its own currency for public sale. He said an ICO will be held some timethis year, in which 10%of the tokens will be sold.

The company has released a white paper describing its ecosystem of digital services.

Kik believes that Kin can bring together a broad group of participants to create an open ecosystem of digital services that prioritizes consumer experience and choice, Livingston said in a prepared statement. As a leader in the chat space, we want to bring a fair and sustainable model for digital services to the market and fuel an alternative ecosystem for communications, information and commerce.

He said a cryptocurrency opens opportunities for digital services that is both open and better.

Kik will create the cryptocurrency following four steps:

1) It will create Kin on Ethereum. Kin will be deployed as an ER20 token and serve as the basis for interoperability with other Kin digital services.

2) Integrate Kin with Kik. Kin will be the transaction currency within the Kik app.

3) Develop a Kin rewards engine to promote Kin as a currency. Kin will be distributed to stakeholders using an algorithm to reflect each partys contribution to the ecosystem. Such a structure will build an incentive for other digital services to partner with Kin. The reward engine will be built on smart contract technology. Kiks daily rewards will begin around $100,000, to be split among the services owners, Livingstonsaid.

4) Establish a Kin Foundation. The non-profit will supportan ecosystem of digital services for consumers, and a platform that will allow developers to find ways to monetize those services. Kik will open source all of its server code.

Digital services like social media platforms and chat apps have become monopolized by a small number of companies, making it hard for smaller players to compete, he said.

Also read: Do increased social media mentions boost price gains in social crypto-assets?

The token will facilitate a variety of services, first within the Kin platform and expand to other digital services.

Being integrated to Kik, Kin will become the most used cryptocurrency, thanks to its millions of monthly users, Livingston said.Bloomberg reported that Kik has revealed 15 million users its app monthly, which is a far cry from the 300 million registered users it claims to have.

Kik has been popular among teenagers since it does not require users to have a phone number. Kik has already raised about $120 million from investors, including Tencent Holdings Ltd., according to Bloomberg.

Featured image of Ted Livingston from TechCrunch/Flickr.

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Kik to Implement Kin Cryptocurrency, ICO May Follow – newsBTC

Kik has announced the launch of a new cryptocurrency, Kin for use within the application. Read more...

Kik, one of the prominent mobile-based chat applications has announced its intentions to launch its own cryptocurrency, Kin. According to the company, Kin will be an ERC20 token based on Ethereum blockchain. It will also act as a payment method within and maybe even outside the chat application.

According to reports, the implementation of Kin tokens will not only make it easy for its users to send and receive money, but it will also end up giving Kik an edge over other competitors in the market. A result of almost three years of development, Kin cryptocurrency will not only create a prolific in-app economy but also promotes user engagement.

Kiks CEO and founder, Ted Livingston was quoted talking about the uses of Kin cryptocurrency on one of the leading business magazines,

There are a bunch of ways to earn it: You could watch ads, you could host a great group chat, create a great sticker, build a great bot. So, theres all these different ways as a consumer you could come in and earn value and then spend value. And how that makes money for Kik is, we create a new cryptocurrency for Kik such that theres only going to be so much of it. And we set some of that aside for us. So that if more and more people transact in this cryptocurrency, the value of it grows.

Once Kik implements the new cryptocurrency tokens, it will gain at least 15 million of its total 300 million registered users. The company has already tested the reception of Kin by introducing Kik points a rewards program which was received well by the userbase. The platform could replace the existing Kik points with Kin tokens to make the transition smooth and effortless.

There are speculations of an upcoming ICO involving Kiks new cryptocurrency, which will be managed by soon to be established Kin Foundation. These new developments have put the chat application in a new light, indicating exciting times ahead for the cryptocurrency industry.

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Artificial Intelligence In Digital Storage – Forbes


Forbes
Artificial Intelligence In Digital Storage
Forbes
The cloud is emerging as a way to provide services such as storage and AI that can make content, including valuable video content, available for repurposing and monetization. Cloud storage allows moving a Capex expense to an ongoing Opex expense, ...

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Cloud Computing to Skip Belmont as Field Comes into Focus – America’s Best Racing

Preakness Stakes winner Cloud Computing will not run in the $1.5 million Belmont Stakes presented by NYRA Bets June 10 and will target later races this summer for 3-year-olds, trainer Chad Brown said May 28. Instead, Brown will send Cobra Farm's Federico Tesio Stakes winner Twisted Tom to the third jewel of the Triple Crown.

Twisted Tom, a Creative Cause gelding, worked five furlongs Sunday under exercise rider Peter Roman on the main track at Belmont Park in company with 4-year-old stakes winner Economic Model. The pair went together in 1:01.16, with the last quarter-mile going in :23 3/5, and galloped out to six furlongs in 1:13 4/5, according to NYRA clockers.

"Twisted Tom worked great," Brown said. "This horse has continued to improve all year, and more of the same today. It was a nice, strong work from him. [The Belmont is a] huge class test for this horse, but I love the way he's developed. I do think he can stay a mile and a half, I think the longer the better for him, so I'm anxious to get him out to that distance, but it'll be a tough field, a large field."

New York-bred Twisted Tom faced statebreds in his first four starts, graduating into stakes company in the March 18 Private Terms Stakes at Laurel Park. He returned April 22 to win the 1 1/8-mile Tesio at Laurel on a sloppy and sealed track.

"He appreciated the time after the win in the Tesio and has had a nice string of works since then, so the horse seems to be sitting on a new top again," Brown said.

Not nominated to the Triple Crown, Twisted Tom will require a $75,000 supplemental fee to run in the June 10 Belmont. Blood-Horse Staff

Gormley Breezes at Santa Anita; Decision on Belmont TBD

At Santa Anita Park on May 27, Jerry and Ann Moss' Gormley logged his second workout since a ninth-place finish in the May 6 Kentucky Derby Presented by Yum! Brands. Trainer John Shirreffs emphasized that although the Belmont Stakes is under consideration, nothing is set in stone.

"I keep telling people, but it doesn't seem like they're listening," Shirreffs said with a laugh. "We'll see how he works and I'll talk with the owners. ... I think he worked well enough today. This work wouldn't eliminate him from the Belmont, anyway. We'll wait a little and see if he keeps improving."

Gormley covered six furlongs in 1:14 flat Saturday at Santa Anita under regular jockey Victor Espinoza. The Malibu Moon colt started about four lengths behind workmate and Shirreffs-trained stablemate Tiz Adore, moved alongside his target in the turn, and finished about five lengths ahead at the wire.

"That's what John wanted nothing crazy," Espinoza said. "Just a little maintenance for him. The idea was to track the other horse to keep me company for the first five-eighths and after that I was moving along."

If Gormley is entered in the Belmont, Espinoza said the Santa Anita Derby winner should not be hampered by the stretch out to 1 miles.

"There's no question about it. The distance is not going to be an issue for him," Espinoza said. "He's in good shape and he's bred to go long."

The prospective Belmont Stakes field as of May 28: Classic Empire, Epicharis, J Boys Echo, Lookin At Lee, Senior Investment, Tapwrit, Twisted Tomand True Timber. Likely to run: Meantime and Multiplier. Possible starters: Conquest Mo Money, Gormley, Hollywood Handsome, Irish War Cry, and Patch. Jeremy Balan

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Blockchain Offers Hope for the Broken Internet – Fortune

Photograph by Getty Images

A version of this post originally appeared in the Cyber Saturday edition of Data Sheet , Fortune s daily tech newsletter.

If we were to design the Internet all over again, it's a good bet we wouldn't build what we have today: A giant advertising oligopoly where consumers trade privacy for free services, and which is so insecure that hackers and criminals run wild.

But path dependency is a powerful thing, and so replacing the Internet we know with something else is very hard. That doesn't mean, though, people aren't trying.

There are big ideas in the air these days, including those shared this week at the bitcoin-blockchain extravaganza known as Consensus . The three-day event in New York City revealed some radical technology to change how we interact with the Internet.

The most ambitious announcement came from a company called Blockstack, which is building a new type of Internet browser using the distributed ledger software known as blockchain . The idea is that people will no longer have to supply log-in information to the likes of Facebook and Google to interact with others on the web. Instead, they'll keep control of their identity by using blockchain's authentication features.

If all this sounds pie-in-the-sky, don't write it off too quickly. I spoke with executives from major companies who are all making the same case that "identity" is the biggest problem with the Internet right now, and hinted they're set to unveil blockchain-based solutions of their own. Look for announcements this summer.

Meanwhile, at the Cyber Investing Summit , where Fortune's Robert Hackett and I hosted panels this week, there was a feeling the tide is starting to turn against hackers. The arrival of new biometric and network technology, combined with the rise of cybersecurity focused investors like Strategic Cyber Ventures , mean Internet security is improving rapidly.

Finally, the HyperLedger Projecta relatively new non-profit group that focuses on blockchainis growing quickly, and getting support from everyone from big banks to IBM to independent developers. If the project succeeds, the result will be a governing body to make blockchain technology secure and easy to use for everyone. In the long term, it could mean we'll all be using a blockchain-based Internet that is superior to the broken web we use today.

Yes, all this feels far off. But as tech writer Walt Mossberg observed in a farewell column titled "The Disappearing Computer," we're in a transition period, and waiting as companies create subtle new types of software that are "simultaneously more intelligent and more secure." The future, as it always does, will arrive.

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Paranoid about internet security? Here are the most secure OS options – The American Genius

Internet security

After the Year of Datasec Fail, in the wake of breach after leak after hack, its time to cop to the fact that private data security is Serious Business.

Private sector titans like Google, Facebook and Yahoo, not to mention the actual flippin US government, have demonstrated that, if theres anything in your life youd rather Vladimir Putin and/or the entire Internet not know about, youd better spit on your hands, boot up your robot of choice, and take responsibility for your own infosec.

The mere notion of handling your own information security (infosec to professional nerds like your narrator) conjures images of command lines, spaghetti code and whatever else it is tech types actually, yknow, do. If only there was an easy fix! A simple, widely applicable one-shot that would make your precious 1s and 0s safe forever.

There pretty much is. Its Linux.

Superficially, using the famous open-source operating system might seem like the opposite of security. After all, the point of open-source is that anybody can look at and futz with the code. How is that compatible with make everything hidden?

As weve ceded more and more of our lives to internet-enabled services, nothing is hidden. Cloud-based services like Google Docs and online-only offerings like Facebook and whatever Yahoos doing these days are accessible to everyone, everywhere. Thats the point. Thats their offer. Accessible to everyone is incompatible with accessible only to nice people.

The Linux fix is twofold.

First, old-school hackers (cue pounding 90s electronica soundtrack) still trading on invading your personal system generally dont bother with Linux exploits. Windows and the traditionally safer Apple are bigger, more valuable targets. Second, 5 popular distros thats particular flavors of Linux some noble white-hat nerds put together for you incorporate fixes for increasingly common Internet breaches of the kind that felled Facebook and Google.

Tails is a live OS, which means you can put it on a USB stick or disc, run it on any computer, and when you pop it out again the computer goes back to the way it was. Local hacks work by reading your logs, huge quantities of nested information your operating system hangs onto for complicated reasons. Windows does it. Apple does it. Some Linux distros do it. Tails doesnt. It also roots your internet traffic through the legendary Tor, benchmark of Internet anonymity. Tailss commitment to zero-footprint computing also has the smaller but just as welcome convenience that, if you do prefer to use it sparingly and stick with your old, less-secure OS, it leaves no souvenirs on your system; your old setup will boot like nothing happened.

If this were a 19th century novel, this entry would be called IprediaOS. Or, the Trouble with Tor. Tor prioritizes security above all else and limits Internet access accordingly. Theres a lot of stuff it wont go near, because its just not secure enough. That limits the mainstream usability of Tor, not to mention services like Tails that rely on it. IprediaOS uses a similar but less strict service, I2P, that affords access to the everyday Web with minimal loss of security. IprediaOS also comes with anonymous chat, email and BitTorrent clients.

Whonix is a unique beast. Its a virtual machine, which is (incredible oversimplification incoming!) a program that thinks its a computer and convinces others to treat it likewise. Its big offer is that it can be run as a program on the Windows and Mac OSes, making it a perfect match for anybody who only has a job or three that demand anonymity cloud-based business records, say, or anonymous blogging and is otherwise good to go with a by-the-book setup. Its also a great way to learn the basics of home infosec, since, being based on the venerable Debian distro of Linux, it plays well with Microsoft, Apple and other Linux systems.

Not a typo! This cleverly named beastie discreetly keeps your secrets by building a discrete structure, unconnected to anything else, for you to whisper them in. Its limited in function compared to the other services listed, functioning primarily as data storage and anti-malware/spyware/Trojan solution, but it is very good at those things. Its in beta at present, and as is a betas wont theres a bug or two to shake out, but it has real promise as a data security tool.

Qubes is the Whonix solution raised to the level of an operating system. It compartmentalizes your work as separate virtual machines, limiting any compromise in security to one set of services, with no chance of spreading to more vulnerable areas. Qubes even color-codes your machines for you, with colored frames indicating the potential security vulnerability of a given VM. So, if you set up one machine as straight data storage with no access to the outside world, thats about as secure as data gets and Qubes will tell you so. The machine you do your web browsing in will be coded otherwise. Better still, Qubes provides a secure data-transfer solution that lets you move information safely between machines. Last September Edward Snowden, a man understandably interested in information safety, tweeted If youre serious about security, @QubesOS is the best OS available today. Its what I use, and free. Nobody does VM isolation better. Cant say fairer than that.

Obviously, as is made clear by the monolith of text above, infosec is an enormous topic.

That said, dont let it scare you.

Get educated on the subject and in a week of digital futzing youll be warm in the knowledge that you do security better than the smartest, richest, most powerful people in the world. Happy (white hat) hacking!

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Paranoid about internet security? Here are the most secure OS options - The American Genius

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