The issue of Islamic classification of cryptocurrency has been ongoing since the rise of bitcoin’s popularity, with debate over whether or not bitcoin and other cryptocurrencies are considered halal (permitted) or haram (forbidden).

This is due to the stringent guidelines regarding monetary classification laid out in the Muslim faith, with conditions forbidding usury (the act of lending for profit on interest) as well as currency backed by nothing considered to be of value. The fractional reserve banking practices which led to the 2008 global financial crisis and the collapse of the US housing market, for example, are completely forbidden by Islamic law, and Muslim bankers and financial professionals cannot engage in them in accordance with their faith.

CCN has covered previous cryptocurrency developments in Islam such as the first ever mosque in Britain to accept cryptocurrency for alms-giving and the declaration that bitcoin is halal, or Sharia-compliant, according to certain scholars. Today, further progress has been made with Swiss financial technology firm X8 AG becoming certified by Islamic scholars for its digital currency, a certification that will be necessary to accommodate the company’s planned expansion into the Middle East.

Many other fintech firms are applying for and pursuing Sharia-compliant recognition that will grant them access to the Muslim banking world, and Middle Eastern regulators and exchanges are equally open to attracting international business pending scholarly approval. The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) conference of Sharia scholars met in Bahrain earlier this year with the classification of cryptocurrencies one of the major items on the agenda.

x8 cryptocurrency crypto

X8’s Ethereum-based cryptocurrency is backed by a basket of eight fiat currencies and gold, which helps the requirements for currency in terms of being backed by commodities or resources deemed to be inherently valuable. This distinction can be a shaky one — fiat currencies like the dollar are typically unbacked by gold these days and are simply deemed valuable by virtue of mainstream social acceptance and adoption, and indeed gold is valued higher than its utility as a conductor due to socially-held beliefs that it is a precious metal.

The Islamic requirement that cryptocurrencies are only valuable if society agrees may seem like a catch-22, but this is essentially a more formal version of the same process for Western valuation of cryptocurrency as well. In this case, X8’s cryptocurrency and related tokens have been certified by the Shariyah Review Bureau(SRB), an Islamic advisory firm licensed by Bahrain’s central bank.

X8 director and co-founder Francesca Greco said:

“The Gulf region is a really good place for financial technology companies, because they all want to become hubs for fintech,” adding the company would open a regional office in the Middle East later this month.”

Regional Gulf regulators have encouraged fintech innovation over the past few years but are still wary of cryptocurrencies, which Greco states is an opportunity for stablecoins to step in and fulfill their use case of reducing volatility. Equally, Switzerland has embraced blockchain with open arms, establishing the small city of Zug as one of the world’s leading blockchain hubs, collaborating with other nations on blockchain regulation, and rolling out blockchain voting prototype systems.

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In the crypto bull market of late 2017, when tokens reached a valuation of tens of billions of dollars, blockchain networks comfortably surpassed the valuation of commercial companies in the cryptocurrency ecosystem.

At the time, for venture capital investors, direct investments in digital assets and cryptocurrencies seemed substantially more profitable than early-stage funding rounds in startups like CoinbaseBinance, and Circle. These companies have since become behemoths in the cryptocurrency sector, achieving multi-billion dollar funding valuations with profitable and stable business models.

Are Crypto Startups Better Investments Than Blockchain Projects?

In November of last year, retail traders and individual investors triggered an unforeseen short-term rally of cryptocurrencies, allowing the market to collectively reach a valuation of over $800 billion.

However, as CoinShares executive Meltem Demirors explained, institutional investors are more interested in investing in the market through investment vehicles that are stable and regulated.

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As of current, the vision of mega-successful crypto companies like Coinbase and Binance is quite clear; to improve the adoption of digital assets and strengthen the infrastructure of the cryptocurrency exchangemarket.

To institutional investors and large accredited investors, indirect investments in the crypto market are more appealing, partially because blockchain projects, decentralized initiatives, and initial coin offerings (ICOs) have been struggling to remain relevant and to establish a clear vision.

“Many crypto projects that raised money through an ICO face massive challenges to stay relevant and create real purpose. for now, our collective hopes and fears are expressed as speculative price moves. projects don’t die the way companies do, and the arc of time is long,” Demirors said.

Given that institutional investors and venture capital firms favor new companies building infrastructure rather than digital assets with unproven business models, in the short-term, companies are expected to outperform most projects in the global market.

“Most investors aren’t going out and buying crypto directly, nor will they do so anytime soon (sorry) that ‘institutional herd’ is getting exposure through existing investment vehicles that they know and understand (even if the assets are new and strange) more and more traditional financial institutions are looking at crypto as a way to: 1. create new revenue streams 2. play ‘innovation’ theater 2. build enterprise value.”

The majority of tokens in the market have also failed to maintain active GitHub repositories, with low double-digit code commits recorded last quarter and hundreds of daily on-chain transactions.

Could the Trend Change?

Chart shared by Meltem Demirors and CoinShares

In the long-term, as the mainstream opens up to decentralized systems and institutions begin to see value in blockchain projects, Demirors stated that a trend reversal is inevitable.

“If the next five years are anything like the last, expect value to flow from centralized corporate entities to less centralized networks and applications. we can’t pinpoint when that shift will happen, but here at CoinShares- we believe it’s inevitable.”

There exist a few key factors that could drive an increasing amount of investment in the blockchain space. In the upcoming months, if major markets like the US, Japan, and South Korea establish clear guidelines to regulate and govern the ICO market, it could open a regulated channel for institutions to invest in the market in a secure and stable manner.

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According to a study conducted by Deidre Campbell, Global Chair of Financial Services at Edelman, reportedby the New York Post, crypto still remains as a preferable long-term investment amongst millennial investors.

“Anyone that has crypto tells me they wish they bought it sooner,” said Campbell, whose study revealed that more than 25 percent of millennials are already using or holding digital assets.

30 percent of the respondents of the survey disclosed an interest in investigating and studying cryptocurrencies with the intent to invest in the short-term. That is more than 55 percent of millennials already invested or planning to invest in the emerging asset class.

Millennials Don’t Trust Banks

Mainly due to inefficient systems and outdated models that are not tailored to young investors, who already suffer from immense financial pressure from student loans after graduating college, several studies have found that millennials do not trust banks with their money.

In 2015, when the awareness of crypto by the mainstream was relatively low and alternatives to banking systems were not made familiar to millennials, a study conducted by Harvard University’s Institute of Politics discovered that only 14 percent of millennials believe the Wall Street “do the right thing” for customers.

Upon the release of the study, speaking to The Street, Recon Capital Partners CEO Kevin Kelly stated that the newly emerging trend could spell trouble for banks and financial institutions in Wall Street.

“This could definitely be a problem for Wall Street. We haven’t seen Wall Street change since the financial crisis. Every day, we’re starting to see headlines still: Wall Street does it again, another Wall Street faux pas,” Kelly explained.

Three years later, cashless alternatives such as fintech applications and crypto have become increasingly popular amongst millennials. In China, AliPay, the fintech platform of Alibaba valued at more than $150 billion, has started to account for more than 80 percent of all domestic online transactions.

In underbanked regions and areas with no practical banking systems, fintech applications have appealed to millions of users. In the Philippines, for instance, major banks like Union Bank require both residents and citizens to store more than $2,000 as a fixed balance in bank accounts, disallowing a fairly large portion of the country from utilizing banking services.

As such, remittance companies like Lhuiller and Palawan have become the main financial service providers of day-to-day users. The popularity of cryptocurrencies has also increased significantly, as digital assets allow users to send and receive payments with mobile phones without depending on banks.

Coins.ph, the largest cryptocurrency trading and remittance platform in the Philippines, secured more than 5 million users in the Philippines alone, with millions of users in Thailand and Malaysia actively using the service to send and receive cryptocurrencies.

“Customers use Coin.ph’s apps to access financial services such as cross-border remittances, purchasing digital currencies, topping up their beep stored value card, paying bills and buying ‘load’ (mobile promotional networks) – all without requiring a bank account,” CCN reported in June.

US, South Korea, and Japan

In major cryptocurrency markets like the US, South Korea, and Japan with established and fully compliant cryptocurrency exchanges, payment processors, and applications, the usage of cryptocurrencies by millennials is expected to surge rapidly.

The government of South Korea has recognized cryptocurrency exchanges as legitimate financial institutions and is leading initiatives to convince young talents to enter the blockchain industry.

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Colorado regulators took action against four ICOs Thursday, bringing the state’s total number of cease-and-desist orders against crypto startups to 12.

The state’s “ICO Task Force” rebuked Bitcoin Investments, Ltd, PinkDate, Prisma and Clear Shop Vision Ltd. Where the companies are based is unclear, a spokeswoman for Colorado’s Division of Securities told CoinDesk, though the unregistered securities they promoted were available to Colorado residents.

Colorado Securities Commissioner Gerald Rome told CoinDesk:

“We want to ensure that the state’s securities market and the investors that operate within it are protected from unscrupulous actors that are taking advantage of the enthusiasm surrounding this field to perpetrate fraud and in some cases outright theft. There are many companies in Colorado that are working hard to conduct their ICOs the right way, and we are eager to continue working with them to build a regulatory framework for the industry as it relates to securities.”

Rome added that the enforcement action is meant to advance Colorado as an “innovative leader” in the cryptocurrency space. Though the state’s ICO Task Force has been active since May, the cease-and-desist orders come just days after Colorado elected a crypto-friendly governorin Congressional Blockchain Caucus member Jared Polis.

More U.S. state regulators are taking action against potentially fraudulent token sales. Earlier this week Texas issued emergency cease-and-desist orders to crypto mining firms based in Australia and Canada.

As CoinDesk reported in August, a coalition of North American securities regulators is conducting more than 200 investigations. The so-called “Operation Cryptosweep” – which the Colorado Division of Securities is participating in – is meant to stifle cryptocurrency scams.

“You’re starting to see now the results of those investigations,” said Bob Webster of the North American Securities Administrators Association (NASAA), which is playing a coordinating role in the Cryptosweep effort.

Webster says Colorado is among the more active jurisdictions in the U.S., along with Texas, North Dakota and Massachusetts.

Anthony Tu-Sekine, who heads up the cryptocurrency arm of law firm Seward & Kissel LLC, says a number of state regulators are jumping into the fray to combat what are often “thinly disguised Ponzi schemes.”

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Blockchain will “probably take a little longer” to develop than the internet, because it is “much more complicated,” ConsenSys creator Joseph Lubin told German media outlet t3n in an interview, Cointelegraph auf Deutsch reportedNov. 9.

Lubin, who is also the co-founder of Ethereum (ETH), told reporters that blockchain technology is developing in a similar way to the web, citing its exponential growth with “hundreds of projects that are already practical for humans” to date.

Based on blockchain’s use case for decentralized cryptocurrencies, the digital entrepreneur also suggested that distributed ledger technology (DLT) will be able to “permeate society more than the Internet” and enable a decentralized internet, or Web3. Lubin, however, forecast that the adoption of blockchain on a mass scale will take longer than that of the internet:

“[Blockchain projects] will enable people to build more things that will come in handy again. That’s how the web was developed. It will probably take a little longer, because it is much more complicated. Also, because we work on topics such as digital money, Blockchain will permeate society more than the Internet. Everything will be networked in a Web3.”

In the interview, Lubin stressed the fact that ConsenSys – an Ethereum-focused startup incubator and infrastructure development firm – was “born” prior to the release of Ethereum, with the goal of building the tools and infrastructure to enable a decentralized “ecosystem” in which Ethereum could function.

 Lubin also emphasized that the firm is interested in bringing that ecosystem forward rather than “controlling” it:

“We [ConsenSys] do many things, but we are not interested in controlling the ecosystem. We are interested in promoting the ecosystem.”

Addressing the question of the Ethereum ecosystem’s decentralization, Lubin retorted “[d]o you expect it to be fully mature, three years after its creation?”

When asked about how the dynamics of the current internet could be transformed in Web3, Lubin shrugged off a comparison between ConsenSys and major internet giants like Facebook and Google, insteading pointing to “IBM and Microsoft, Accenture and Deloitte” as possible centralizing forces in blockchain.

Lubin also stated that the principle business models of the internet today are contradictory to the nature of blockchain, which “enables a self-determined, sovereign identity.”

Earlier this year, Lubin predicted that the global community is moving towards a world based on “decentralized governance,” supporting the idea that major cryptocurrency Bitcoin (BTC) is likely to remain the world’s “digital gold,” while Ethereum would serve as a “fuel” for decentralized ecosystems.

This post credited to cointelegraph Image source: Cointelegraph 

The Y2K program (does anyone remember that?) came about because software developers assumed, in the early days of computing, that newer, better enterprise systems would come along very soon and that their efficient two-digit date systems would be replaced long before the year 2000 came along.

There were very few CIOs in those days, and many of them would have carefully explained to those efficient software developers that if something isn’t broken, don’t fix it, which often followed the corporate view on IT issues.

You may think of CIOs as technology enthusiasts, and they are, but these days, IT systems are almost always mission-critical. Changing them out means accepting significant operational risk. While you can’t make a car with an electronic data interchange message, if those messages don’t go out or come in, there will be no raw materials for the manufacturing line to bolt together.

As a result, risk management in large enterprises means that we can’t drop in blockchain technology wherever we see a good application. Processes that work at scale, even ones that don’t work particularly well, are still less risky than adopting new ones, especially if you need to bring a bunch of business partners along with you for the ride.

When it comes to deploying blockchains in the enterprise, this means that some things that seem like obvious applications aren’t necessarily going to get traction.

The most typical blockchain solution that doesn’t gain traction even though, on the surface, it seems like a great idea, is supplier collaboration. Blockchains are ideal for complex, multi-party solutions.

Tokenization, in particular, is a powerful tool for managing supply chains because it means that each piece of inventory is subject to double-spend controls and reconciliation when it is tokenized.

You may think that such things already happen today. They don’t.

Enterprise double-spends

While I cannot put money in your bank account without moving it from another one, it turns out that most enterprise IT systems will let me create inventory just about anywhere — and without reconciliation.

Unloading raw materials off a truck? You can “receive” goods easily and because the trucking system and the enterprise are usually not linked, there’s no single system that demands you off-load raw materials from a truck if you want to put them in a warehouse.

By using tokenization and a blockchain to link up the supply chain, we can subject inventory tokens to double-spend controls and force reconciliation across the network. The result is a process that looks much more like banking. When we model this for EY clients, they can easily find a 20% or more reduction in inventory just by improving the accuracy of operations. The return on that investment is usually very large.

The obstacle here is that nearly all large companies already have supplier relationship management systems. These handle the exchange of shipment messages, invoices and inventory data. They’re often point-to-point, between one customer and one supplier, not including third parties like contract manufacturers or shipping companies, and often detached from payments as well. In addition, these systems can’t usually see past one tier back in the supply chain, so a factory fire or a big shipping delay two tiers back won’t be visible until it’s too late to properly react.

Inadequate? Expensive? A far cry from what an integrated blockchain solution could do? Yes, yes and yes. But do these systems work from a day-to-day operations standpoint without major disruption? Mostly. Would it be risky and scary to replace them without a major crisis or burning platform? Yes.

As a consequence, while we are building supply chain collaboration and integration systems, my expectations about where and when we can push a blockchain solution forward are somewhat different.

Businesses are seeking more procurement solutions where the ROI is particularly large and measurable or those scenarios where operational success in the supply chain depends heavily on actions that take multiple tiers out of the supply chain. In both of those cases, there’s often enough value or (perhaps sometimes more importantly) big enough capability gaps to justify enterprises’ investment in new solutions.

I believe blockchains will eventually become the standard mechanism by which companies interact with each other, covering everything from the business agreement to the tokenization of products and services, delivery and supply chain tracking and integrated payments.

The path there, in the enterprise, will be an indirect one, starting with one very specific problem at a time.

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In an official statement, the Ukranian government confirmed its plans to establish regulatory frameworks to legalize crypto in the region.

As a part of an initiative to consider and acknowledge cryptocurrency as an emerging technology, the Economic Development and Trade Ministry in Ukraine released a new state policy to oversee various cryptocurrency-related sectors which will be put in full effect by the end of 2021.

Two-Part Plan

Throughout 2018 and 2019, the government of Ukraine will integrate regulatory frameworks to strictly govern the local cryptocurrency exchange market. Crypto trading platforms will be required to implement Know Your Customer (KYC) and Anti-Money Laundering (AML) systems to help local authorities monitor the market.

By 2020, the government plans to delve into the cryptocurrency mining industry, smart contract protocols, and taxation, as the second part of the initiative to recognize cryptocurrencies as an asset class and an established industry.

cryptocurrency mining

Researcher Denis Zarytsky stated that the official document released by the government of Ukraine outlined a 5 percent tax payable by entities and individuals with cryptocurrency holdings, a rate that is substantially lower than other regions like France and the UK that have over 10 percent tax on cryptocurrency investments.

Regions that have recognized cryptocurrencies as properties impose higher taxes, as Japan and Australia have done in the past. In early 2018, both Japan and Australia removed double taxation on crypto.

“They aim to determine guidelines for token classification. Additionally, they will be touching upon issues that relate to smart contracts and cryptocurrency mining. Therefore, this work will be ongoing. There will be two separate stages to the implementation of this new state policy. The hope is to have this policy in full effect by 2021. In addition to the new state policy, the government notably has brought in a new taxation bill. This outlines a new 5% tax that is payable by entities and individuals with cryptocurrency holdings.”

In October, Yuriy Derevyanko, a member of the anti-corruption Movement of New Forces and a legislator of Ukraine, called for the complete elimination of taxes on crypto by the end of 2020.

Derevyanko firmly stated that crypto has the potential to become one of the major markets of Ukraine and a driving force of the country’s economy.

“I believe we need to impose a moratorium on taxation of [the crypto] area for the next 10 years. We have to regulate and legalize this segment, which will become an engine for a new economy.”

Currently, both the opposing and the ruling party of Ukraine remain positive on the long-term growth of the cryptocurrency sector and blockchain technology.

The positive sentiment towards the new asset class in the country could lead to a sped-up process of implementing the policy drafted by the government to legalize cryptocurrencies within the next three years.

Falling Back Behind Japan and South Korea

Singapore, South Korea, Japan, Switzerland, the UK, and France as of late have shown significant progress in terms of regulation and infrastructure establishment to facilitate increasing demand towards the asset class.

While local experts remain optimistic regarding the three-year plan of Ukraine, some have expressed concerns in the timeframe of the initiative and that the period of three years could allow other emerging cryptocurrency markets to take first-mover advantage.

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According to a report in the New York Times, Goldman Sachs bankers have been successfully brought to heel regarding their part in a massive multi-billion dollar embezzlement scheme in league with former Malaysian PM Najib Razak, who used proceeds from the scandal to purchase luxury items and fund an extravagant lifestyle.

There’s nothing overly special about the scandal. It’s something that happens quite frequently in current — or shall we say “legacy” — financial systems. Razak created and oversaw a “sovereign wealth fund,” and with the help of Goldman Sachs bankers, embezzled and misused the funds in outlandish ways including the purchase of a Picasso.

Of Prime Ministers and Picassos

The prime minister received nearly a billion dollars of the funds in his own private bank account, enriching himself to such an extreme that he was for a time extremely wealthy by any standard. Ironically, US federal prosecutors seem to be doing the most in response to the criminal activities, prosecuting at least two Goldman bankers thus far, one of whom has reportedly already pleaded guilty.

This is, of course, not Goldman’s first instance of misconduct. At the same time, when we look around the banking industry, nearly everyone has dirty hands in one way or another. If only there were some kind of technology which forced transparency and inherently prevented fraud — what’s that, Goldman Sachs? blockchain, you say?

Current Systems Not Effective

goldman sachs

 

An important passage from the NYT report reads [emphasis added]:

“The authorities said that at least one high-ranking executive in the bank’s Asian operations was aware of the scheme, which dodged Goldman’s systems to detect the payment of bribes. That person, unidentified in the court filings, has not been charged. According to three people familiar with the matter, the executive was Andrea Vella, who was the co-head of Goldman’s Asian investment banking business.”

This passage is important because it illustrates that the traditional banking sector actually does want what we have natively in the cryptocurrency and blockchain space: methods of preventing fraud and misuse of funds. Opaque practices and institutions always have and always will present the opportunity for fraud and abuse. Transparency, as is innate in all public and most private blockchains, is a fundamental remedy to such situations. Essentially, we suggest that such fraud as was conducted by the agents of 1Malaysia Development Berhad (1MDB) is basically impossible to get away with in a blockchain enabled ecosystem.

The Blockchain Natively Discourages Fraud

Certainly the criminal element will forever develop ways to get around anything that intends to keep them honest, but actually getting away with it long enough to steal three-quarters of a billion dollars is pretty unlikely. AI via neural networks could be trained to watch for behavior that frequently resulted in fraud, and such disgraceful incidents as this, where a despot utilized his power to secure many millions of dollars, and private bankers aided him in pursuit of hundreds of millions in fees, would as a start be less attractive to attempt.

It took two years for any sort of justice to be served. Two men besides Tim Leissner, the banker who has already plead guilty, were allegedly involved. One of them has yet to be arrested, meaning it could be a couple more years before the matter is finally resolved. The bottom line is: if a conspiracy of this size only required that many participants, then there is plenty of other good medicine the blockchain can delivery via multi-signature smart contracts and other crypto applications

One thing is for sure: no Bitcoiners were harmed during the making of this scandal.

Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.

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Bank of America (BoA) has gained a further cryptocurrency-related patent, a filingconfirmed Oct. 30, continuing its efforts to “be prepared” for the industry’s future growth.

The latest award, which adds to the bank’s mounting stack of cryptocurrency and blockchain patents, references storage methods for private keys.

Specifically, the filing reads, current opportunities for ensuring private keys remain untampered with are insufficient.

“[W]hile many […] devices may provide for acquiring evidence of a security breach (i.e., physical or non-physical tampering with the device and/or the data), such devices do not provide for real-time response to such breaches, such that misappropriation of private cryptography keys is prevented,” BoA writes. The patent filing continues:

“Therefore, a need exists for a secure means for storing private cryptography keys. The desired storage means should reduce the risk of misappropriation of keys due to the keys being stored internally within a computing node that is frequently or, in some instances, continuously accessible via a public communication network, such as the Internet.”

As Cointelegraph has reported, the banking giant has sought several patents in the past few months, these relating variously to external validationdata storageand others.

At the same time, officials have remained highly skeptical of cryptocurrency itself, banning credit card customers from purchasing it while admitting Bitcoin (BTC) represented a “troubling” issue for its operations.

In June, CTO Catherine Bessant said that the patent routine should safeguard the bank’s interests in the event of the technology surrounding cryptocurrency becoming mainstream.

“We’ve got under 50 patents in the blockchain/distributed ledger space,” Fortunequoted her as saying at the time.

“While we’ve not found large-scale opportunities, we want to be ahead of it we want to be prepared.”

This post credited to Cointelegraph  Image source: Forbes Japan 

During an interview with Investopedia on Oct. 5, Tron CEO Justin Sun stated that its developer community is more vibrant and active than Ethereum.

When asked by the publication to provide five reasons why Tron is better than Ethereum, Sun said:

“At TRON we always emphasize the importance of accessibility and our dedication to the community. That’s why we made sure to deliver on our goals of being faster and cheaper than Ethereum, providing an easy-to-use and affordable network to our vibrant community of talented developers.”

1,000 Developers at ETHSanFrancisco Ethereum Hackathon

In a recent hackathon held in San Francisco, more than 1,000 developers gathered to develop applications and scaling solutions on Ethereum.

Brayton Williams, the co-founder of venture capital firm Boost VC and a blockchain investor, stated:

“5 years ago at one of the first crypto conferences ‘Bitcoin 2013’ we Boost VC organized the hackathon. We maybe had 25 people participate and took place in San Jose. This weekend it was amazing to see over 1,000 people hacking away @ETH SanFrancisco at the Palace of Fine Arts.”

Lindia Xie, a co-founder at Scalar Capital and 0x advisor, who has helped ETH SanFrancisco and other locations to host Ethereum hackathons, said that the developer community of Ethereum has grown significantly over the past three years.

Echoing the sentiment of Williams, Xie said:

“Completely agree, I remember attending the ETH San Francisco meetups 3 years ago and it’d be like 20 people there! It’s been so amazing seeing the community grow.”

ethereum Blockchain EEA

In terms of user activity, transasction volume, network activity, and number of dApps, Ethereum is stastically far ahead of Tron. According to Etherscan, Ethereum is processing around 500,000 transactions per second on a daily basis. Tron, in contrast, is struggling to record 50 percent of that.

But, for blockchain projects based on the ERC20 token contract standard of Ethereum, competition against the second most valuable cryptocurrency in the global market is only friendly, because they benefit off of the efforts of the developer community of Ethereum to scale the blockchain.

Many of the scaling solutions that are being integrated into the Ethereum network including Sharding, Plasma, Snark-Based Side Chain, and ZK-SNARKs are expected to drastically increase the mainnet capacity of the Ethereum network, which will be beneficial to both dApps and blockchain protocols launched on top of Ethereum.

How Tron can Actually Compete

In all areas, Tron remains behind Ethereum, and the blockchain project is not close to catching up to the dominant smart contract protocol, as a cryptocurrency that remains outside of the top 10 rankings in the global market.

But, Tron’s acquisition of BitTorrent, the largest torrent client in the world with more than 100 million users, given Tron a unique market to target with a decentralized blockchain system. With it, if leveraged correctly, it is possible for Tron to find a solid use case of its blockchain technology.

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