Artificial Intelligence Arrives at the Edge – Electronic Design

Research into artificial intelligence (AI) has made some mind-blowing strides, expanding the usefulness of computers. Machines can do certain tasks faster and more accurately than humans. A great example is the ILSVRC image classification contest using a type of AI called machine learning (ML). Back in 2012, AlexNet won this contest, being the first to use deep neural nets and GPUs for training. By 2015, ResNet-152 beat humans at classifying images (Fig. 1).

1. Machine learning has improved over the years, eventually exceeding the performance of people when it comes to image classification.

Other examples where computers are better than humans include games. Figure 2 summarizes a few examples where machines beat human champions along with a non-gaming case where humans are still better.

2. Machine learning isnt up to autonomous drivingyet. (Game Performance 1997-2019)

Clearly machine learning is providing some amazing new capabilities that are essential for applications such as the smart home, smart retail, the smart factory, and the smart city, but can be leveraged by a wide range of businesses today. This can be seen in the dramatic growth of ML cloud services available from providers such as Amazon AWS SageMaker, Microsoft Azure ML, and Google Cloud ML Engine.

Push for the Edge

Until recently, the focus for ML has centered around the cloud running huge centralized computer centers due to the vast compute and storage resources available. This is shifting rapidly to the edge for a number of reasons, including:

All of these factors together make the edge the obvious place to put ML processing for many applications. Thats why NXP announced the i.MX 8M Plus applications processor, claimed as the first i.MX applications processor with a dedicated machine-learning accelerator.

The i.MX 8M Plus uses the 14-nm FinFET process node technology for low power with high-performance and has a number of new features including dual-camera image signal processors (ISPs) that support either two low-cost HD camera sensors or one 4K camera sensor for face-, object-, and gesture-recognition ML tasks. It also integrates an independent 800-MHz Cortex-M7 for real-time tasks and low-power support, video encode and decode of H.265 and H.264, an 800-MHz HiFi4 DSP, and eight pulse-density-modulation (PDM) microphone inputs for voice recognition. Industrial IoT features include Gigabit Ethernet with time-sensitive networking (TSN), two CAN-FD interfaces, and ECC.

Helping to accelerate the machine-learning-at-the-edge trend, data scientists are optimizing specific algorithms for resource-constrained devices being deployed at the edge. MobileNet is an image classification algorithm developed by Google with a focus on high accuracy while significantly reducing the amount of compute resources needed.

Figure 3 shows the dramatic reduction in processing. Going from the VGG-16 model to the MobileNet v2 model reduces the amount of compute needed at the edge by 50X. This enables a resource-constrained hardware solution at the edge to do sophisticated ML processing.

3. Neural-network algorithms can be optimized for edge computing.

In comparison, running MobileNet v1 at the edge in a mobile phone is significantly faster than running it in the cloud. The difference is achieved by eliminating cloud network latency. Network latency can easily add between 200 ms and over 1.4 seconds, significantly delaying the response. The goal is a response under 100 msappearing instantaneous to the user (Fig. 4).

4. Moving machine learning to the edge delivers a faster and better user experience.

Figure 5 illustrates some of the many applications enabled by running machine learning at the edge.

5. The possibilities are almost limitless when taking advantage of machine learning at the edge.

As shown in Figure 6, each of these use cases needs a certain level of performance that determines what level of hardware is needed to run it.

6. Here are some machine-learning use cases and their performance based on the platform they run on.

It makes sense to run ML applications at the edge for the reasons already mentioned. However, a few more requirements must be met to have a successful deployment:

Ecosystem for ML Development: eIQTM

Breakthrough ML applications require a design and development ecosystem thats up to the task. Along those lines, NXP created the innovative eIQTM or Edge Intelligence tools environment, providing the tools a customer needs to deploy their ML technology. The eIQTM ML software-development environment (Fig. 7) includes inference engines and libraries leveraged from advances in open-source machine-learning technologies.

7. The eIQTM Machine Learning Development Environment supports all major machine-learning frameworks.

Deployed today across a broad range of advanced AI development applications, NXPs eIQ software brings together inference engines, neural-network compilers, and optimized libraries for easier, holistic system-level application development and machine-learning algorithm enablement on NXP processors. eIQ supports a variety of processing elements for ML including Arm Cortex-A and Cortex-M processors, GPUs (graphics processors), DSPs, and ML accelerators.

NXP has deployed and optimized these technologies, such as TensorFlow Lite, OpenCV, CMSIS-NN, Glow, and Arm NN, for popular RT and i.MX applications processors. These are accessed through the companys development environments for MCUXpresso and Yocto (Linux) to help provide seamless support for application development. eIQTM software is accompanied by sample applications in object detection and voice recognition, to provide a starting point for machine learning at the edge.

The eIQ Auto toolkit is a specialty component of the eIQ machine-learning software-development environment, providing an Automotive SPICE-compliant deep-learning toolkit for NXPs S32V2 processor family and advanced driver-assistance system (ADAS) development. This technology offers functional safety, supporting ISO 26262 up to ASIL-D, IEC 61508, and DO 178.

Edge Security: EdgeLockTM

Security at the edge is critical. Needed capabilities include a secure-boot trust anchor, on-chip cryptography, secure provisioning, mutual device authentication, secure device management, over-the-air (OTA) secure updates, and lifecycle management.

To support this, NXP created the EdgeLock portfolio, delivering secure elements, secure authenticator, and embedded security to application processors and microcontrollers. EdgeLock brings integrity, authenticity, and privacy to the edge node and provides security from the edge to the gateway and the cloud.

Affordable Edge AI

eIQTM brings ML to NXPs existing line of SoCs, leveraging the CPU, GPU, and DSP. However, even the fastest CPUs are inefficient at executing highly complex neural networks. Going forward, the company is creating a new family of hybrid AI SoCs combining a state-of-the-art embedded SoC with the latest in AI/ML hardware neural-processing-unit (NPU) technology for both application processors and microcontrollers. The result leverages existing SoC applications and adds the parallel compute power of an ML accelerator.

Future

The pace of change in the AI landscape is accelerating. Figure 8, from the AI Index 2018, shows the growth in deep-learning job openings, and Figure 9 illustrates the mentions of AI and machine learning on company earning calls.

8. Job openings that require AI skills has grown significantly (2015-2017). (Sources: Monster.com, AI Index 2018)

9. IT Company earnings calls that mention AI terms have risen significantly (2007-2017). (Sources: Prattle, AI Index 2018)

AI and machine learning are creating a seismic shift in the computer industry that will empower and improve our lives. Taking it to the edge will accelerate our path to a better tomorrow.

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Artificial Intelligence Arrives at the Edge - Electronic Design

Bitcoin 101: What is Bitcoin? – CoinDesk

Last updated: 20th January 2018

Before owning any bitcoin, you need somewhere to store them. That place is called a wallet. Rather than actually holding your bitcoin, it holds the private key that allows you to access your bitcoin address (which is also your public key). If the wallet software is well designed, it will look as if your bitcoins are actually there, which makes using bitcoin more convenient and intuitive.

Actually, a wallet usually holds several private keys, and many bitcoin investors have several wallets.

Wallets can either live on your computer and/or mobile device, on a physical storage gadget, or even on a piece of paper. Here well briefly look at the different types.

Electronic wallets

Electronic wallets can be downloaded software, or hosted in the cloud. The former is simply a formatted file that lives on your computer or device, that facilitates transactions. Hosted (cloud-based) wallets tend to have a more user-friendly interface, but you will be trusting a third party with your private keys.

Software wallet

Installing a wallet directly on your computer gives you the security that you control your keys. Most have relatively easy configuration, and are free. The disadvantage is that they do require more maintenance in the form of backups. If your computer gets stolen or corrupted and your private keys are not also stored elsewhere, you lose your bitcoin.

They also require greater security precautions. If your computer is hacked and the thief gets a hold of your wallet or your private keys, he also gets hold of your bitcoin.

The original software wallet is the Bitcoin Core protocol, the program that runs the bitcoin network. You can download this here(it doesnt mean that you have to become a fully operational node), but youd also have to download the ledger of all transactions since the dawn of bitcoin time (2009). As you can guess, this takes up a lot of memory at time of writing, over 145GB.

Most wallets in use today are light wallets, or SPV (Simplified Payment Verification) wallets, which do not download the entire ledger but sync to the real thing. Electrum is a well-known SPV desktop bitcoin wallet that also offers cold storage (a totally offline option for additional security). Exodus can track multiple assets with a sophisticated user interface. Some (such as Jaxx) can hold a wide range of digital assets, and some (such as Copay) offer the possibility of shared accounts.

Online wallet

Online (or cloud-based) wallets offer increased convenience you can generally access your bitcoin from any device if you have the right passwords. All are easy to set up, come with desktop and mobile apps which make it easy to spend and receive bitcoin, and most are free.

The disadvantage is the lower security. With your private keys stored in the cloud, you have to trust the hosts security measures, and that it wont disappear with your money, or close down and deny you access.

Some leading online wallets are attached to exchanges (such as Coinbase and Blockchain). Some offer additional security features such as offline storage (Coinbase and Xapo).

Mobile wallets

Mobile wallets are available as apps for your smartphone, especially useful if you want to pay for something in bitcoin in a shop, or if you want to buy, sell or send while on the move. All of the online wallets and most of the desktop ones mentioned above have mobile versions, while others such as Abra, Airbitz and Bread were created with mobile in mind.

Hardware wallets

Hardware wallets are small devices that occasionally connect to the web to enact bitcoin transactions. They are extremely secure, as they are generally offline and therefore not hackable. They can be stolen or lost, however, along with the bitcoins that belong to the stored private keys. Some large investors keep their hardware wallets in secure locations such as bank vaults. Trezor, Keepkey and Ledger and Case are notable examples.

Paper wallets

Perhaps the simplest of all the wallets, these are pieces of paper on which the private and public keys of a bitcoin address are printed. Ideal for the long-term storage of bitcoin (away from fire and water, obviously), or for the giving of bitcoin as a gift, these wallets are more secure in that theyre not connected to a network. They are, however, easier to lose.

With services such as WalletGenerator, you can easily create a new address and print the wallet on your printer. Fold, seal and youre set. Send some bitcoin to that address, and then store it safely or give it away. (See our tutorial on paper wallets here.)

Are bitcoin wallets safe?

That depends on the version and format you have chosen, and how you use them.

The safest option is a hardware wallet which you keep offline, in a secure place. That way there is no risk that your account can be hacked, your keys stolen and your bitcoin whisked away. But, if you lose the wallet, your bitcoin are gone, unless you have created a clone and/or kept reliable backups of the keys.

The least secure option is an online wallet, since the keys are held by a third party. It also happens to be the easiest to set up and use, presenting you with an all-too-familiar choice: convenience vs safety.

Many serious bitcoin investors use a hybrid approach: they hold a core, long-term amount of bitcoin offline, while having a spending balance for liquidity in a mobile account. Your choice will depend on your bitcoin strategy, and your willingness to get technical.

Whatever option you go for, please be careful. Back up everything, and only tell your nearest and dearest where your backups are stored.

For more information on how to buy bitcoin, see here. And for some examples of what you can spend it on, see here.

(Note: specific businesses mentioned here are not the only options available, and should not be taken as a recommendation.)

Authored by Noelle Acheson. Wallet image via Shutterstock.

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Bitcoin 101: What is Bitcoin? - CoinDesk

Bitcoin Rises Back to $8.8K Even as US Stock Futures Drop – CoinDesk

Bitcoin is up again Friday as losses are seen in U.S. stock futures.

Following a rise of 23% over the last two days, though, the rally looks overstretched and the gains may be short-lived.

At press time, the biggest cryptocurrency by market value is trading near $8,860, representing a 2.8 percent gain on the day, according to CoinDesk's Bitcoin Price Index. Prices have risen from lows near $8,600 seen earlier today.

Meanwhile, the futures tied to the S&P 500, Wall Street's equity index, are down over 2 percent.

Renewed growth concerns seem to be weighing on the futures market. Amazon, the world's largest online retailer, warned of a possible second-quarter loss late Thursday, and Apple declined to give a financial forecast for the first time in a decade.

Further, fears of fresh U.S.-China trade war gripped markets in Asia after President Trump threatened China with retaliatory tariffs over the coronavirus outbreak. Trump accused China of unleashing the virus into the world due to some awful mistake, and even suggested the release could have been intentional.

All this economical gloom may, though, bodes well for bitcoin, as some analysts consider bitcoin a safe haven like gold. That belief has been reinforced by the cryptocurrency's stellar recovery rally from the March 13 low of $3,867.

Bitcoin is also widely expected to maintain its upward trajectory in the days leading up to the mining reward halving, due on May 12.

Key on-chain metrics also suggest investor confidence in the ongoing rally. Both small and large investors, popularly known as "whales," seem to be accumulating coins ahead of the halving.

Exchange balances declined to 2,357,741 BTC on Thursday to hit the lowest level since May 27, according to data provided by blockchain intelligence firm Glassnode. The metric, which suggests a holding mentality among investors, has dropped by over 10 percent since March 13.

"Overall, on-chain fundamentals are recovering to pre-crash levels," noted Glassnode in its weekly report.

While the odds appear stacked in favor of stronger gains toward $10,000 in the short term, the technical charts are signaling overbought conditions and scope for price pullback.

Daily chart

Bitcoin formed a bearish "pin bar" candle on Thursday, which comprises a long upper shadow and small red body with little or no lower shadow. The pattern is indicative of rejection, or bull failure, at higher prices.

The pin bar is also considered an early sign of bearish trend reversal if it appears after a notable price rally, as is the case here.

Alongside that, the 14-day relative strength index (RSI) is reporting overbought conditions with an above-70 reading.

As a result, a drop to the 200-day average at $8,000 may be seen before a potential rally into five figures. "People must be careful of the price pullback. Bitcoin may revisit the $8,000-$8,500 for a while, before making another attempt at $10,000 in the run-up to the halving," said Chris Thomas, head of digital assets at Swissquote Bank.

Thursday's high of $9,485 is the level to beat for the bulls. Chart analysts consider a failed pin bar as a powerful bullish signal. So, if prices find acceptance above $9,485 on Friday, a stronger rally to levels above $10,000 may be seen.

Disclosure:The author holds no cryptocurrency at the time of writing.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin Rises Back to $8.8K Even as US Stock Futures Drop - CoinDesk

US Bitcoin Holders Worry About Chinese Control of the Mining Network – Cointelegraph

Could China take over the Bitcoin (BTC) ecosystem? Its a very real possibility, and it could happen very quickly because China controls more than half of the worlds Bitcoin mining operations upward of 65% of the computing power to mine Bitcoin. No other country is anywhere near that number. Additionally, according to Genesis Minings recent The State of Crypto Mining 2020 report, 60% of Bitcoin owners have a real concern about that Chinese majority and what it could mean for the stabilization of the cryptocurrency.

And they should be worried. China owning more than half of mining operations could result in a disruption to the system, instability to the Bitcoin blockchain or even a takeover of the entire system. Bitcoin was not built to be a controlled currency.

So, why is Chinas vast mining network a concern? In order to understand the potential threat in Chinas majority control, we need to look at a fundamental attribute of how the Bitcoin ecosystem works: decentralization.

The founder of Bitcoin, Satoshi Nakamoto, had a vision for a currency that wouldnt be subject to a third party such as a bank, but that could be democratically exchanged from individual to individual. The Bitcoin ecosystem works because of the community behind it: the miners who add blocks to the chain and the nodes that scan transactions to make sure they adhere to the Bitcoin protocol. Theres no one entity that governs Bitcoin and thats the point.

Even though Bitcoin has a strongly decentralized network, it could still be threatened. If someone were to control over 50% of the power used in mining operations, they could possibly disrupt the entire system through whats called a 51% attack, or majority attack. A majority control would allow the attacker to alter transactions, double spend Bitcoin for their own gain or even block other miners from mining.

Which is why its concerning that Chinese mines are running 65% of the global hashing power used to mine Bitcoin. Its certainly more than 51%.

It takes a lot of energy to mine Bitcoin, so it would make sense that miners would set up their rigs in places where energy and labor costs are cheap. Because China is a center of international trade, lead times and production costs for almost all goods are lower than in other countries, and this also holds true for mining farms and miners. But while a number of mining farms do run on sustainable resources such as hydroelectric power, many rely on coal to fuel their mining. While coal may be cheaper than other fuels such as gas and oil, its still more expensive than alternative options such as hydroelectric and wind power, and its unsustainable and detrimental to the environment.

Having 65% of the worlds mining located in China is a concern. Even though Chinese mines work independently, the majority of the power is now located in one country. And the fact that the Chinese government has control over all of its industries is also a concern. If the government decides that it wants to take over the Bitcoin ecosystem, it could leverage its power over the countrys mining companies and simply take over a majority of the computing power, executing a 51% attack. Suddenly, the decentralized system would be centralized under one country.

While this could be a very real scenario if all the right pieces fell into place, its probably a long shot. New players in the mining market are increasingly setting up shop in the European Nordic states, Canada and the United States. The running costs there, which include cheaper energy options such as hydroelectric and wind power, along with a lack of government oversight that would let companies plan their strategies freely make those locations attractive for investors looking for a more sustainable opportunity.

Additionally, its unclear what Chinas future will be with Bitcoin. It, along with all cryptocurrency, has been banned in the country for years. Though mining had been allowed to continue, the industry as a whole was on the chopping block last year. Even though the Chinese government suddenly announced at the end of 2019 a commitment to developing blockchain technology and allowed mines to continue to operate, the government still hasnt reversed its ban on cryptocurrency. Even though China could take over Bitcoin, it just might not want to.

Still, Chinas overwhelming number of miners, mining pools and companies is something the Bitcoin community needs to be aware of. At the same time, the community can ensure that decentralization continues within the ecosystem by making sure its keeping its own mining operations diversified. As I mentioned above, were seeing new mining farms cropping up in new geographies, which will continue to distribute resources and mining power across the globe.

Its yet to be seen what the future of Chinese mining will be. But the Bitcoin community, which values transparency and democracy, will work to ensure that it remains open and available to all.

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Philip Salter is the head of mining operations at Genesis Mining, the worlds largest cloud crypto mining operation, where he leads the software development, data engineering and research teams. Salter started his career as a software developer for BSI Business Systems Integration AG. Salter is an avid miner and crypto enthusiast based in Germany.

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US Bitcoin Holders Worry About Chinese Control of the Mining Network - Cointelegraph

Bitcoin Could Correct Further To 100 SMA at $8,200 Before Fresh Increase – newsBTC

Bitcoin rallied to $9,500 before starting a downside correction against the US Dollar. BTC price might dip towards the $8,200 support zone before a fresh increase.

Yesterday, we saw a strong pre-halving rally in bitcoin above the $8,000 and $8,500 resistance levels against the US Dollar. BTC price gained more than 20% and it even tested the main target of $9,500 (as discussed yesterdays analysis using the daily chart).

A new monthly high is formed near $9,498 and the price recently started a substantial downside correction. There was a break below the $9,200 and $9,000 support levels.

Bitcoin even dived below the $8,800 level and tested the $8,400 support area. A low is formed near $8,405 and the price is currently trading above the 23.6% Fib retracement level of the recent decline from the $9,498 high to $8,405 low.

On the upside, an initial resistance is near the $8,800 level. There is also a short term declining channel forming with resistance near $8,800 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Above the channel resistance, the next resistance is near the $8,950. It is close to the 50% Fib retracement level of the recent decline from the $9,498 high to $8,405 low.

To start a fresh increase, the bulls need to push the price above the channel resistance and then clear the $8,950 resistance. A successful follow through above the $9,000 level could pump the price towards the $9,200 and $9,500 levels in the near term.

On the downside, the first major support for bitcoin buyers is near the $8,400 level. The next major support is near the $8,200 level or the 100 hourly simple moving average.

It seems like the price might dive towards the $8,400 support or the 100 hourly SMA to complete the current wave. Later, it is likely to start a fresh increase above $9,000 unless there is a close below $8,200.

Technical indicators:

Hourly MACD The MACD is about to move into the bullish zone.

Hourly RSI (Relative Strength Index) The RSI for BTC/USD is currently rising and it is near the 50 level.

Major Support Levels $8,400 followed by $8,200.

Major Resistance Levels $8,800, $8,950 and $9,000.

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Bitcoin Could Correct Further To 100 SMA at $8,200 Before Fresh Increase - newsBTC

The ‘Great Lockdown’ Is Boosting Demand for Bitcoin Custody Solutions – CoinDesk

Thanks in part to the uncertainty of the coronavirus crisis and rising bitcoin prices, bitcoin wallet startups have seen a sudden uptick in activity.

For example, over the past two months the Austin, Texas-based bitcoin startup Unchained Capital, with over $50 million in assets under management and $150 million worth of bitcoin transactions processed, garnered several dozen new institutional clients, representing hundreds of individuals. Will Cole, Unchaineds chief product officer, said the custody product Vault saw 340% growth in Q1 2020 as compared to the previous quarter.

Weve seen a big uptick in the creation of Vaults, Cole said. An event like that [pandemic] makes people think about how they are storing their bitcoin.

Unchained is working on a wallet update with new privacy features. It allows users to sort UTXO (unspent transaction output) information, which makes it possible to reveal less information about oneself to an external recipient, even while using a public blockchain.

Unchained adviser Christopher Allen, founder of the not-for-profit benefit corporation Blockchain Commons, said the industry still doesnt have clear terminology that distinguishes the Vault custody solution, where both Unchained and the client have keys to a multisig wallet versus wallets where only the user holds keys. Regardless, there appears to be increased interest in wallets where users hold keys, in some form.

Custody requires keys that are under your control or under collaborative custody with others. But it isn't self-sovereign if they can unilaterally block your recovery, Allen said. There are many other companies and teams involved who all desire to make multisig easier, more standard, and allow you to choose different approaches or implementations knowing that you are not locked into a single solution.

Such setups, like Vaults, make sense for companies and families that want to manage significant funds without a single person being in control of the wallet.

Not alone

These days many of the industrys large wallet businesses appear to be growing, in terms of both profits and users.

For more private options geared toward individual users, ShapeShift CEO Erik Voorhees said there are far more people using his software wallet solution this year. As such ShapeShift, acquired the Israeli wallet startup Portis for an undisclosed amount in April. This decreased the companys compliance risks and solidified its position in the industry's self-custody sector, slightly less lucrative than custodial crypto exchanges yet growing at a comparable rate.

This is the first recession the world has seen since cryptocurrency existed, Voorhees said. We want people to think of ShapeShift as the self-custody interface for all the various crypto services out there.

Like ShapeShift, Ledger CEO Pascal Gauthier, whose startup is scaling up to meet increased demand for hardware wallets, said his wallet will also allow users to do all the complex things you can do with a coin directly through the Ledger Live app.

We do see an increase in downloads of Ledger Live, our hardware wallet companion app, as we are adding more coins, Gauthier said. Nowadays, our main revenue comes from the hardware wallet business. Our revenue model will evolve to one-off revenues, transactional and recurring revenues thanks to additional services.

Revenue models

After several years of operation, many incumbent crypto companies now feel pressure to deliver returns for investors. Its unclear which business models will best suit the crypto economy.

Every day I think about acquisitions for a minute, then decide against it, Gauthier said. Ledger has enough money in the bank, a good business. Theres a question about where this industry is going and what does that mean for the future.

Unchained Capital earns revenue from clients who pay for the multisig Vaults or loan services associated with its open source wallets. The startup relies on subscriptions from a small number of wealthy clients for profits, even if it also serves less-lucrative retail users. On the other hand, ShapeShift profits from in-app referrals to exchanges and other services.

Voorhees said he acquired Portis because the startups tech allows for a familiar login, akin to Facebook Login, but where users need to actually remember their passwords.

Stepping back, Portis was founded in 2018 and attracted the attention of legendary Israeli tech investor Eddy Shalev. The Block reported Portis nearly shut down in Q1 2020, since co-founder Itay Radotzki quit in January and eight employees were subsequently laid off. Portis co-founder Tom Teman said the venture capital climate changed dramatically in 2020, a sentiment echoed by veterans across the industry, that investors are increasingly demanding revenue from the start.

(After publication of this article, Teman told CoinDesk that The Block had it wrong: only four staffers, including Radotzki, were let go, he said.)

Yet, a former Portis competitor, Fortmatic CEO Sean Li, said his user-friendly login startup isnt taking ShapeShifts approach because he doesnt think any business should see themselves as a portal that owns everything in it. As such his revenue model is business-to-business, rather than monetizing user activity. Li estimated nearly 5,000 developers now use Fortmatic for gateways to their various projects, so his early-stage startup is still on track to make more than $500,000 in revenue this year.

This prevents the next Facebook or Google situation where one account is associated with a lot of different applications, compromising user security and privacy, Li said.

On the other hand, Casa CEO Nick Neuman said his subscription-based startup saw an influx of new clients since the beginning of March, with a 50% increase in total bitcoin usage. Like Unchained Capital and other subscription startups above, Casa is primarily focused on bitcoin.

Were definitely seeing increased demand for self-custody since the coronavirus crisis began, Neuman said.

And where there is demand, there is opportunity.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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The 'Great Lockdown' Is Boosting Demand for Bitcoin Custody Solutions - CoinDesk

First Mover: Tezos Led Crypto Market With Twice Bitcoin’s Gains in April – CoinDesk

Bitcoin? Ether? Ripple? Meh. During a month where cryptocurrencies zoomed, the lesser-known Tezos beat them all.

Tezos (XTZ), one of the largest and most prominent among a fast-growing roster of digital coins known as staking tokens, jumped 83% in April, the most among cryptocurrencies with a market value of at least $1 billion, based on data fromMessari.

You're readingFirst Mover, CoinDesk's daily markets newsletter. Assembled by the CoinDesk Markets Team, First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in bitcoin and more. We follow the money so you dont have to. You cansubscribe here.

Thats more than double the 37% gain for bitcoin (BTC), the largest cryptocurrency by market value, which benefited from speculation that aninflation hedge will come in handyas the Federal Reserve and other central banks inject trillions of dollars of emergency liquidity into the global financial system.

Ether (ETH) rose 62% alongside a surge in growth for U.S. dollar-linked stablecoins built atop the Ethereum blockchain, and as investor interest grew in the white-hot arena of decentralized finance. Ripple'sXRP, a payments token, rose 30%.

Staking tokens give holders the right to weigh in on a blockchains governance similar to the way shareholders vote for a companys board of directors while also giving them the ability to earn a share of newly minted tokens, in the manner of a dividend or bond coupon.

The strong performance of Tezos is likely in part due to increased investor interest in staking-based returns, said Joseph Todaro, managing partner atBlocktown Capital, an investment firm specializing in digital currencies.

Some cryptocurrency exchanges offer staking as a service to make it easier for investors to participate, and Tezos has benefited recently from new listings on the exchanges Bitfinex and Binance. Its been on Coinbase, another exchange, since last year.

Ethereum, whose native token ether is the second-biggest cryptocurrency after bitcoin, plans to upgrade to a staking model in July. Some analysts say ether has generated additional enthusiasm among speculators due to the transition to staking.

Tezos has doubled on a year-to-date basis, despitea bout of volatility along with bitcoin, ether and other tokens earlier this year.

One caveat for traders is that Tezos has a market value of just $2.1 billion, less than 1/70th of bitcoin. So Tezos has the potential for big losses alongside any fast gains, even when compared with the notoriously volatile bitcoin; in March, Tezos tumbled 41% as bitcoin slid 24%.

The price movement of any given crypto asset is partially dependent on current investing narratives, said Todaro.

Tweet of the day

Bitcoin watch

BTC: Price: $8,995 (BPI) | 24-Hr High: $8,9958 | 24-Hr Low: $8,415

Trend: Bitcoin is on the rise, having bounced up from its key average support early Friday.

The original cryptocurrency is trading near $8,995 at press time (updated), representing over 4% gains. Prices defended an ascending 50-hour average support during Asian trading hours.

The average has consistently restricted downside and reversed pullbacks in the recent rally that pushed bitcoin from $6,800 to $9,400. As a result, the immediate bias will remain bullish as long as prices are tradingabove the 50-hour average, which is currently at $8,751.

If the latest bounce from the average support ends up clearing the immediate resistance at $8,913, bitcoin will likely revisit $9,200.

While the hourly chart is reporting bullish conditions, the daily chart studies also show buyer exhaustion. It's possible there could be a break below the 50-hour average support, which would take bitcoin down to $8,500.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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First Mover: Tezos Led Crypto Market With Twice Bitcoin's Gains in April - CoinDesk

Bitcoin Wallets Are Adopting This Tech to Simplify Lightning Payments – CoinDesk

The Lightning network might be key to the future of bitcoin, but it still has a long way to go in terms of user experience.

To tackle this issue, the standard known as Lnurl is quietly gaining ground. Without much fanfare, it's been adopted in some of the most popular Lightning wallets including Zap, Phoenix, Breez, Blue Wallet and Wallet of Satoshi, as well as dozens of other apps.

Sending or receiving Lightning payments can often require a bit of set-up and a number of steps. Lnurl aims to simplify many common actions so that they instead require just a click or a QR scan.

Lightning payments are an experimental payment method that could greatly improve the Bitcoin network, making payments faster, cheaper, and more scalable. But so far, the user experience (UX) is even more confusing than Bitcoin's, which, with its private keys that cannot be lost and jumbled addresses, is weird enough for the average Joe as it is.

That's why developer and Bitcoin Lightning Wallet creator Anton Kumaigorodski decided to create a standard that would improve Lightning's UX, hiding a bit more of the underlying complexity from users.

"I've noticed some clearly visible UX issues specific to Lightning Network wallets, all of them are solvable but require some kind of standard for wallets to converge on. Lnurl aims to be such a standard," Kumaigorodski said.

The advantages include making it much easier to request "inbound liquidity," meaning the user needs to make sure enough bitcoin is in the right spot in the network in order to receive payments, which is one of the more common and troubling UX problems for users. It also cuts out a couple of steps when sending money in a few common scenarios.

Receiving funds

This is a lot of information that someone needs to know before using Lightning, making it a pain to use, especially compared to more intuitive mainstream alternatives such as Venmo or PayPal.

For example, to use Lightning, a user needs to put some of the bitcoin into the second-layer network by opening a "channel" with someone else. Say Alice deposits one bitcoin on her side. If Bob, her counterparty, has no money on his side, then she doesn't have "inbound capacity."

This means she can send payments but can't accept them.

To fix this, Alice would need to open a channel with someone who has bitcoins on their side.

This is an obvious roadblock for easy payments over the network. Many new users open a channel, then run into the problem that they can't accept payments and aren't sure what to do.

A number of services such as Lightning Loop and Bitrefill's Thor have launched to help users retrieve inbound capacity.

With Lnurl (specifically, the part of the standard called Lnurl-channel) the process is greatly simplified, making these services a bit more automatic. A user just clicks a link to pay a little bit of money to retrieve more inbound capacity.

"You could scan a QR code and request an incoming channel from a service," Lightning and Bitcoin Core contributor Tim Akinbo said.

The Breez wallet, for instance, adopted ln-channel in its point-of-sale app so merchants can top up their inbound capacity by scanning a QR code or clicking a link.

"No IT know-how is required," Breez CEO Roy Sheinfeld said.

Moving funds around

Another piece of the specification, Lnurl-withdraw, also makes it easier to move funds around.

Say you earn some bitcoin in a Lightning app (a "lapp" in Bitcoin lingo). Maybe you win a few cents worth when playing the game Bitcoin Bounce, or someone tips you on Twitter via Tippin. The pocket change you receive will initially be stored in the app.

However, say Alice wants to move her money from a game to her wallet so it's under her control or so she can spend it elsewhere (such as to automatically dispense food to chickens over the internet and watch them eat it over webcam). Without Lnurl, sending the funds to her wallet takes several steps.

First, she needs to create an invoice in her wallet. Then she copies the long, jumbled string of letters and numbers generated to identify where the funds are to be sent. She switches over to the game, clicks on the withdrawal page, pastes in the invoice and clicks send.

Lnurl potentially reduces this process to a simple scan in the app from which she's moving funds away.

"One of the improvements include the ability to simply scan a QR code and withdraw funds from a service directly to your wallet, without the pesky workflow of generating an invoice and then submitting it," Akinbo said.

It's worth noting that so far this standard only works in the wallets and apps that support it. The more wallets that use this standard, the better, Kumaigorodski said. Every service that adopts it will ease the process for users, doing a small part toward making the Lightning network easier to use for mere mortals.

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Bitcoin Wallets Are Adopting This Tech to Simplify Lightning Payments - CoinDesk

Why a Startup You’ve Never Heard of Is Now Sponsoring a Bitcoin Core Developer – CoinDesk

There are roughly 15 known entities sponsoring Bitcoin Core developers in 2020, and the Wyoming-based startup CardCoins just became one of the smallest industry players to join the pack.

CardCoins has helped over 10,000 unique users convert gift cards into bitcoin, according to a spokesperson, with "millions of dollars of volume last year. That healthy-yet-modest traction, which increased slightly since the recession hit, is dwarfed by incumbent crypto exchanges and custody providers.

Out of the most well-capitalized crypto companies, BitMEX, Bitfinex, OKCoin and Xapo are the few that help support developers working full time on bitcoins fundamental software. This is the trunk and roots of the crypto industry.

The nonprofit hub sponsoring the most Bitcoin Core contributors to date, Chaincode Labs, was forced to postpone its annual summer residency due to the coronavirus crisis. Adam Jonas, head of special projects at Chaincode Labs, said the nonprofit currently sponsors seven developers and intends to continue educational residency programs later this year.

Bitcoin advocates have historically criticized exchanges such as Coinbase for not contributing more to these independent, open source developers.

Sometimes it can be easy to lose sight of the fact this multibillion-dollar industry, with companies like Binance that employ hundreds of people, relies on software maintained by just a few dozen people and occasional volunteers. The CardCoins spokesperson said there arent many people to pick from, with regards to prolific contributors who arent already on the above-mentioned payrolls.

So in March, as the Great Lockdown derailed summer plans to train more developers, CardCoins partnered with the fintech company Payvant to split a one-year grant for the Ukrainian contributor Hennadii Stepanov, who goes by Hebasto.

As business owners and bitcoiners ourselves, were grateful to the folks that work on the low-level, nitty-gritty stuff, CardCoins said in a statement. We don't see a world in which we work with a successful bitcoin company and that company doesn't also give back to the community."

Thanks to this grant, Stepanov said, he quit his job at a local university and can now focus on bitcoin full time. He quickly went from discovering bitcoin in 2017 to making a small contribution in 2018, an issue he found when setting up his own node. Now hes among the worlds most prolific contributors.

Decentralizing should be on all levels, including contributions, Hebasto said. I saw how the bitcoin developer community embraced me as a first-time contributor. They share knowledge. I like those people. I like to learn from them.

Although CardCoins has seen a modest incline in the past few months, this move wasnt inspired by extra cash to spend. Instead, the startup co-sponsored the grant because keeping bitcoin decentralized is fundamental to the firms business model.

Peer review is the cornerstone of Bitcoin Core and keeping bitcoin safe, generally, the spokesperson said. He [Stepanov] is making sure that Bitcoin Core will run on many different platforms in a safe way.

Most CardCoins users convert gift cards into bitcoin in under an hour using a phone number and a few pictures of the receipt and card details. This allows the startup to serve underbanked clients attracted to bitcoins censorship-resistant properties.

Weve made enormous investments in compliance and our programs and procedures have been overseen by a former federal prosecutor, CardCoins said of the mission to serve this user group without regulatory arbitrage. Those customers are vital to the lifeblood of bitcoin.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Why a Startup You've Never Heard of Is Now Sponsoring a Bitcoin Core Developer - CoinDesk

Bitcoin (BTC) Price Is ‘Too Low’: Twitter Reacts to Elon Musk’s Jaw-Dropping Tweet – U.Today

Alex Dovbnya

Tesla CEO Elon Musk tanks his companys stock by claiming that its too high while invigorating another debate around the price of Bitcoin (BTC)

Tesla CEO Elon Musk has stepped up his Twitter game by tweeting that the companys stock was too high.

Investors were quick to react to the unorthodox statement by pushing Teslas shares down 12 percent in the span of one hour.

In response to Musk, whoever behind Bitcoins Twitter handle tweeted that BTC price was, in fact, too low.

As reported by U.Today, the market cap of the leading electric car manufacturer once again surpassed that of Bitcoin back in April.

Bitcoin analyst Tuur Demeester claimed that Teslas valuation was over the top when compared to BTC. Now, he gladly tweets that everyone appears to be on the same page.

The confession of the famed entrepreneur also inspired Binance CEO Changpend Zhao to post a poll about the Bitcoin price.

The bearish tweet, which played into the hands of Tesla short-sellers, was only part of his most latest Twitter storm.

The charismatic billionaire announced that he would sell all of his physical possessions while reciting the U.S. national anthem to make a case for giving people their freedom back.

As reported by U.Today, Musk is one of the most vocal proponents of ending lockdowns that he likened to fascism during his recent earnings call.

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Bitcoin (BTC) Price Is 'Too Low': Twitter Reacts to Elon Musk's Jaw-Dropping Tweet - U.Today