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Boston Fed’s Project Hamilton Concludes as MIT Scheduled to Release Report in 2023

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Boston Fed's Project Hamilton Concludes as MIT Scheduled to Release Report in 2023

The two-year Hamilton project run by the US Federal Reserve Bank in Boston in partnership with the Massachusetts Institute of Technology (MIT) ended days before the Christmas holiday. The project started in early 2021 to explore the technical viability of the US digital dollar – CBDC. 

Conclusion of Hamilton Project 

The vice president of Boston’s Fed, Jim Cunha, lauded the Project Hamilton team for its input in publishing the white paper on central bank digital currency. The Fed official noted that the project successfully created in-depth information on how digital currencies could work better. 

Cunha restated that the importance of Project Hamilton in publishing the white paper in February aided in the development of open-source research software identified as OpenCBDC. However, the executive vice president admitted that the OpenCBDC only succeeded in utilizing the distributed ledger technology version. 

Project Hamilton’s Achievements 

Cunha celebrated Project Hamilton’s success in finalizing the digital dollar privacy and programmability research besides the scrutiny on its interoperability and auditability. His sentiments drew reference to the Boston Fed announcement on December 22 that the researchers will lap the study by conveying other retrospectives on the digital dollar findings in 2023. The announcement supported official MIT’s communication on December 9 confirming the plans by the digital currency initiative team to convey the research findings on January 12 next year. 

The Boston Fed’s announcement on December 22 confirmed the progressive execution of the OpenCBDC initiative to realize a throughput rate of accommodating 1.84 million transactions every second. Cunha observed that the non-blockchain version in February indicated to process 1.7 million transactions every second. It dwarfed the blockchain-based performance that was processing 170000 transactions every second. 

Concerns over Private Entities’ Involvement in Hamilton Project

The Fed’s vice president admitted receiving a letter of inquiry from US legislators questioning the visibility of Project Hamilton. Led by Representative Tom Emmer, the lawmakers wrote on December 1 to the Boston Fed head Susan Collins expressing concern on the poor visibility displayed in Project Hamilton by excluding the private sector representatives. 

The legislators’ letter questioned the extent of involving the private sector representatives. In particular, the letter expressed concerns about whether the private participants would receive favorable treatment in the CBDC development. 

In addition, they sought written clarification on the privacy approach during the project. While the letter failed to identify private participants in Project Hamilton, the inquisitive nature echoed Emmer’s past opposition to CBDCs. In particular, Emmer formulated a bill to prohibit the issuance of CBDC to consumers. 

Despite the opposition, the success of Project Hamilton earned DCI a partnership with the Bank of Canada and Bank of England to execute 12-month research on CBDC rollout. 


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Why Real Regulatory Change In Crypto Has Not Happened

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Why Real Regulatory Change In Crypto Has Not Happened



Legislators need to educate themselves on Web3 if they care about protecting consumers, Steven Eisenhauer, chief risk and compliance officer at Ramp, writes.


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South Korea to deploy cryptocurrency tracking system in 2023

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South Korea to deploy cryptocurrency tracking system in 2023


The Ministry of Justice in South Korea announced plans to introduce a crypto-tracking system to counter money laundering initiatives and recover funds linked to criminal activities.

The “Virtual Currency Tracking System” will be used to monitor transaction history, extract information related to transactions and check the source of funds before and after remittance, according to local media outlet khgames.

While the system is slated to be deployed in the first half of 2023, the South Korean ministry shared plans to develop an independent tracking and analysis system in the second half of the year. A rough translation of the ministry’s statement reads:

“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”

The South Korean police previously established an agreement with five local crypto exchanges to cooperate in criminal investigations and ultimately create a safe trading environment for crypto investors.

Related: South Korean prosecutors request arrest warrant for Bithumb owner: Report

The South Korean Supreme Court ruled that crypto exchange Bithumb must pay damages to investors over a 1.5-hour service outage on Nov. 12, 2017.

The finalized ruling from the supreme court ordered damages ranging from as little as $6 to around $6,400 be paid to the 132 investors involved.

“The burden or the cost of technological failures should be shouldered by the service operator, not [the] service users who pay commission for the service,” the court stated.


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Data Shows 50% Of Bitcoin Hashrate Controlled By Two Mining Pools

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50% of Bitcoin hashrate Controlled by Two Mining Pools

Bitcoin hashrate is becoming highly centralized, with a few mining pools controlling most of the blockchain mining power. The latest data from Mempool indicates that 50% of the total hashrate is held by Foundry USA and Antpool. 

A Highly Centralized Mining Network

Foundry USA has maintained a hashrate of over 30% of the total Bitcoin network for several weeks. It became the first mining pool of non-Chinese origin to lead the list in November 2021, following the ban on Bitcoin mining in China in the middle of the same year. 

Back then, Foundry USA contributed 17% of the total Bitcoin hashrate. Today, the US-based pool averages 34.1% of the mining power, equivalent to about 104 EH/s, considering that the Bitcoin hashrate is around 300 EH/S. 

Related Reading: First Bitcoin Mining Powered By Nuclear Energy To Open In The U.S. In Q1 This Year 

Antpool comes in second with about 18.0% of the total hashrate equivalent to about 58 EH/s. The Chinese-based pool used to be the largest Bitcoin pool but was affected by the ban on crypto mining which caused several miners in the region to migrate. 

Bitcoin Pool distribution records on Dec. 29, 2022 (3-day stats)/Mempool.com

What Is Behind This Trend?

The graph shows that over 80% of Bitcoin’s mining power is concentrated among just 5 pools. This contrasts with the beginning of 2022, when these five mining pools barely exceeded 60% of the hashrate. 

Some factors could have contributed to this rise. One of which is the location of the servers of the said pools. The closer the servers are to the pools and mining facilities, the lower the information transfer latency. This means that a miner will likely get more shares in the mining process and earn more Bitcoin (BTC) by connecting to a closer server. 

Bitcoin hashrate difficulty
Bitcoin hashrate difficulty for January/CoinWarz.com

Another factor is the financial incentives offered by these major mining pools. Bigger mining pools can consistently distribute profits to their members, who pay a commission for mining with their resources, driving more miners to their ecosystem. This is evident with the high mining difficulty in recent weeks due to the bullish movement of Bitcoin, making it difficult for smaller mining pools to be profitable. 

Related Reading: Why The S&P 500 Could Help Send Bitcoin Soaring Higher

However, Bitcoin’s highly centralized mining system poses significant dangers to the cryptocurrency. The miners could agree to reject transactions that do not meet a specific parameter leading to a 51% attack. 

We’ve seen such attacks occur on other Proof-of-Work blockchains like Ethereum Classic, which could be a problem for Bitcoin. In addition, these pools are recognized companies and could face pressures from regulatory agencies trying to control activities on the Bitcoin network. 

Bitcoin Price

So far, Bitcoin is still maintaining its bullish trend, with the leading cryptocurrency up by 40% since the start of the year. As of the time of writing, Bitcoin is trading at $23,400, according to data from Tradingview.com. 

Bitcoin Price on January 28| Source: BTCUSDT on Binance, TradingView
Bitcoin Price on January 28| Source: BTCUSDT TradingView

Featured image from Pixabay, charts from Trading View, Coinwarz, and Mempool


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