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November 2016

Olaoluwa Osuntokun: “Amortizing Secure Computation with Penalties – A.K.A: secure+fair off-chain computation channels on top of Bitcoin.


Olaoluwa Osuntokun: “Amortizing Secure Computation with Penalties – A.K.A: secure+fair off-chain computation channels on top of Bitcoin.
https://twitter.com/roasbeef/status/804067435372429312

Submitted December 01, 2016 at 06:00AM by a56fg4bjgm345
via reddit http://bit.ly/2gmdDJE

(Texas and Illinois): direct buy/sell of BTC and crypto-crypto trading is not money transmission


(Texas and Illinois): direct buy/sell of BTC and crypto-crypto trading is not money transmission
https://twitter.com/msantoriESQ/status/804068106465398784

Submitted December 01, 2016 at 06:14AM by iattp777
via reddit http://bit.ly/2g8j8ZF

I have made a Lightning FAQ – Feedback appreciated!


I have made a Lightning FAQ – Feedback appreciated!

Q: What is the Lightning Network?

A: The Lightning Network is currently under development and will become a decentralized network that enables instant off-chain transfer of bitcoin between counterparties without the need of a trusted third party. The system utilizes bidirectional payment channels that consist of multisignature addresses. One on-chain transaction is needed to open a channel and another on-chain transaction will close the channel. Once a channel is open, value can be transferred instantly between counterparties, who are exchanging normal bitcoin transactions, but without broadcasting them to the bitcoin network. New transactions will replace previous transactions and the counterparties will store everything locally as long as the channel stays open.

Q: Is Lightning open source?

A: Yes, Lightning will be open source. Anyone can review the code just like the bitcoin code.

Q: Who owns and controls the Lightning Network?

A: Similar to the bitcoin network, no one will ever own or control the Lightning Network. The code will be open source and free for anyone to download and review. Anyone who wants will be able to run a node.

Q: Who is behind the Lightning Network?

A: Joseph Poon and Thaddeus Dryja wrote The Lightning white paper. Anyone who wants can contribute with the development of code. Blockstream currently has one employee who is dedicated to Lightning development

Q: Does the LN have its own “Lightning coins”?

A: No, that’s not how the LN works. The LN will be using real bitcoin transactions with actual bitcoins in them

Q: Is the LN dependent on consensus to be implemented?

A: No, the LN builds an additional layer on top of the bitcoin network and is therefore not dependent on consensus in the bitcoin network itself.

Q: I have heard that there will be some fees involved in the LN, who will be collecting those fees?

A: Potentially everyone who runs a Lightning-node. Example: Alice wants to send money to Carol, but Alice doesn’t have an open channel with Carol. But Alice has an open channel with Bob, and Bob has an open channel with Carol. Instead of opening a new channel with Carol, Alice can route the payment trough Bob: Alice – Bob – Carol. In this scenario Bob might take a small fee.

Q: Will there be any custodial risk in the Lightning Network? Do I have to trust anyone else to hold my money?

A: No, the system is not based on trust; you remain in full control of your money. If anything goes wrong you simply broadcast your state to the bitcoin blockchain and all your money is returned to you.

Q: Does the Lightning Network have its own blockchain?

A: No, Lightning is dependent on the bitcoin blockchain. On-chain bitcoin transactions are needed to open and to close “channels” between peers (nodes) in the system. Once a channel is open, bitcoin can be sent off-chain in both directions within the channel. The transactions inside a channel are real bitcoin transactions, but they are not broadcasted to the bitcoin network as long as the channel stays open. Instead those involved store the transactions locally. This enables instant transactions and a near unlimited capacity within a channel.

Q: Will there be any form of mining in the Lightning Network?

A: No, security is provided by the bitcoin miners in underlying bitcoin network

Q: Where can I find more information about Lightning?

A: http://bit.ly/1L3xyEi

http://bit.ly/1QN8x3k

http://bit.ly/1QcQu9D

Submitted December 01, 2016 at 02:05AM by ABrandsen
via reddit http://bit.ly/2fEFw0i

Bitcoin service ordered to hand over two years of user records to IRS


Bitcoin service ordered to hand over two years of user records to IRS
http://bit.ly/2fSG8xR

Submitted December 01, 2016 at 06:23AM by youcancallmejoey
via reddit http://bit.ly/2gzoNZ7

Will lightning network be an alternative to accepting 0 confirmation transactions?


Will lightning network be an alternative to accepting 0 confirmation transactions?

E.g. will the (in this case) store owner be able to detect if it's a lightning transaction and instantly confirm the transaction and process the order and for orders which are not LN will require confirmations?

Submitted December 01, 2016 at 03:57AM by IshidaT
via reddit http://bit.ly/2gWsUlz

BitLendingClub/Loanbase shutting down immediately citing “regulatory pressure”


BitLendingClub/Loanbase shutting down immediately citing “regulatory pressure”

Just got this from their mail list, I don't see anything on their site or twitter account yet.

BitLendingClub Closing Soon Due to Regulatory Pressure

Dear Customers,

We've worked extremely hard to build a platform and a community which is uniquely positioned to provide the Bitcoin ecosystem with a greatly needed service. However, over the last year or so, the regulatory pressures has been increasing to the point that it is no longer feasible to maintain the operation of the platform. We are regretfully announcing that we will have to begint terminating the services effective immediately. Of course, we will maintain some minimal functionality in order to allow our existing users to repay their loans and withdraw their funds.

What Functionality Will Remain?

We will restrict the functionality of the website to either repaying a loan, depositing to repay or withdrawing funds. There will be no new registrations, loan requests, verification of new users, investments or anything else. Just repaying of the existing loans or withdrawal.

When Will The Service Become Restricted?

We expect to begin restricting the functionality sometime next week. We don't have a specific date, but we will send out an e-mail when the change occurs.

How Long Will The Platform Remain Operational With Restricted Functionality?

The platform will remain operational with the limited functionality for 30 days after all loans are either repaid or written off (i.e. they have defaulted and are written off). After that we will be terminating the services completely. The expected termination date is approximately August 2017. it may be earlier or later, but that's subject to change.

How Long Do We Have To Withdraw Our Funds?

Users will be able to withdraw their funds up to 30 days after the last loan is repaid or marked as written off. We will completely terminate the platform 30 days after the last loan is repaid or written off. We recommend that you begin withdrawing your funds immediately.

Again, we're extremely sad to be delivering this news, but that's the reality of operating a business in the Bitcoin ecosystem. There are regulatory pressures, which make business extremely difficult and we have always done everything possible to be compliant with regulators. Given that we've reached the point where it is no longer feasible to run the platform and be compliant, we have decided to terminate the platform.

Best Wishes, The BitLendingClub Team

Submitted December 01, 2016 at 03:26AM by idmzo
via reddit http://bit.ly/2gz0XwX

Samson Mow to Host AMA on 8btc about Scaling and SegWit


Samson Mow to Host AMA on 8btc about Scaling and SegWit
https://twitter.com/btcinchina/status/803911847627739136

Submitted November 30, 2016 at 06:44PM by 8btccom
via reddit http://bit.ly/2gx2LGG

Carleton University dealing with a Ransomware Outbreak asking for 39 Bitcoins


Carleton University dealing with a Ransomware Outbreak asking for 39 Bitcoins
http://bit.ly/2gG2lAu

Submitted November 30, 2016 at 09:51PM by BitcoinistanRising
via reddit http://bit.ly/2fLuCBp

India: Payday [12/01] chaos after note ban set to break out today, banks, ATMs may run dry soon


India: Payday [12/01] chaos after note ban set to break out today, banks, ATMs may run dry soon
http://bit.ly/2glQp6r

Submitted December 01, 2016 at 01:57AM by bitsteiner
via reddit http://bit.ly/2g7WNLL

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