About Blockchain

 

Blockchain is a shared public ledger system where every user has the updated version of the entire past transaction history represented by the chain of blocks itself. It is the most secure and decentralized way to perform value-based services online.

How is this possible?

Blockchain uses traditional technologies like databases, hashing, and cryptography to replace trust with mathematical proof. Every node has the updated version of the current blockchain and they together verify the transactions in each block before adding them to the blockchain.

 

Why hashing?

The node needs to be updated with the current blockchain after every block creation.  It wouldn’t be feasible to download the blocks and thus the transactions within it as it is. The amount of memory used to store the blockchain would be staggering and would discourage nodes from participating. To solve this all the transactions of a given block are compressed using a form of hashing called Merkle hashing.

Hashing returns a unique fingerprint for each block hashed.

This also helps in securing a transaction as any tampering of the transaction can be easily detected.

(https://brilliant.org/wiki/secure-hashing-algorithms/)

Block, chain?

A miner in the system is a node that helps in verifying a block before the system can add it to the blockchain. All the miners in a system try to solve a complex mathematical puzzle to get the reward associated with it. This is called proof of work and helps in maintaining trust.

Once the block is verified, it is chained to the blockchain by adding the previous

block’s hash value to its block. This chaining prevents tampering of individual blocks as the chain will be broken.

The block is a container of the block header and the transactions.

The header contains the metadata information which is useful for both the mining and the chaining process. The transactions are stored in a Merkle tree structure and the Merkle root obtained is stored in the block header.

(bitcoin.org/en/developer-guide#block-chain-overview)

In this manner, Blockchain is a decentralized technology that allows for security and integrity of transaction information by eliminating trust between nodes and establishing consensus among through a secure validation mechanism.

Blockchain 101 is a series of posts that aim to make the concepts of blockchain easy and understandable. 
Stay tuned for more! 

Weekly Technical Analysis 26.08.2017

www.tradescrypt.com’s Weekly Technical Analysis gives investors important insights on fundamentally strong cryptocurrencies which include Bitcoin, Ethereum, Litecoin, Ripple and AntShares(NEO).  It’s a quick read for investors at the start of the week which presents necessary statistics which could prove vital for considering investment position and making decisions during the week.

1.Bitcoin:

BTC-analysis-26.08.17.png

In spite of the seller resistance, Bitcoin has managed to stay above the USD $4000 mark which seems as the newly established floor. Investors have got in on 23rd and 24th when the prices were just above USD $4000. Bitcoin is currently trading at USD $4300. Investors who want to get in must wait for a short dip which we expect to occur in a few days.

Following are the statistical conclusions drawn from this week’s technical analysis:

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Note: Prices have changed significantly. Once the new floor is set, we can calculate the OTE and the risk/reward ratio.

  • Market Cap: USD $71,638,083,124
  • Circulating Supply: 16,527,225
  • Volume(24h): USD $1,503,230,000

2. Ethereum:

ETH-Analysis-26.08.png

Ethereum is gradually recovering its position which was lost during the Bitcoin fork period. It is trading at USD$330. Investors have entered on 24th and 25th when it was trading at around USD$320. We recommend this price as the OTE for the week which would ensure a good Risk/Reward ratio.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Market Cap: USD $31,766,976,757
  • Circulating Supply: 94,270,460
  • Volume(24h): USD $551,820,000

3. Litecoin:

LTC-analysis-26.08.17

Litecoin has crossed USD $50 mark. Investors who still want to get in must wait for a dip and get in at the blue buying region which would increase the Risk/Reward ratio significantly. Refer to our Litecoin fundamental analysis to understand the potential of the coin.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Optimal Trade Entry (OTE): Around 0.00004650 BTC
  • Market Cap: USD $2,893,886,049
  • Circulating Supply: 52,646,932
  • Volume(24h): USD $325,010,000
  • Risk/Reward Ratio: 0.64

4. Ripple:

XRP-analysis-26.08.png

Ripple was trading at USD $0.16 which was a stable floor since the past few days. With the current price at USD$0.20, Ripple has displayed a growth of 25% even after the correction. With strong fundamentals and growing community, invest and hold is our recommended position. Risk/Reward Ratio for this would be significantly higher than our recommended threshold.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Optimal Trade Entry (OTE): Around 0.00004650 BTC
  • Market Cap: USD $7,866,239,162
  • Circulating Supply: 38,343,841,883
  • Volume(24h): USD $177,526,000

5. NEO:

NEO-analysis-26.08

NEO has set a new floor of USD $35. We have observed a correction after NEO soared to USD$50. Risk/Reward Ratio at this point are greater than our recommended threshold. With strong fundamentals and growing community, invest and hold is our recommended position.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Optimal Trade Entry(OTE): Around 0.00867554 BTC
  • Market Cap: USD $1,901,680,000
  • Circulating Supply: 50,000,000
  • Volume(24h): USD $41,663,900

Information sources-

www.coinigy.com
www.coinmarketcap.com

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Analysis: OmiseGO

OmiseGO

Unbank the Banked with Ethereum.

1. What is it?

OmiseGO is a public Ethereum-based financial technology for use in mainstream digital wallets, that enables real-time, peer-to-peer value exchange and payment services agnostically across jurisdictions and organizational silos, and across both fiat money and decentralized currencies. Designed to enable financial inclusion and disrupt existing institutions, access will be made available to everyone via the OmiseGO network and digital wallet framework, starting in Q4 2017. (Source:https://omg.omise.co/)

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2. FIT Test (F: Future updates; I: Innovation; T: Trends): FIT Test enables us to check the uniqueness, alignment with respect to the current trends and future update of the fundamentals of the corresponding cryptocurrency.

A) Innovations:  OmiseGO uses their own blockchain which is based on Ethereum to provide remittance services to the people without the involvement of any bank. These services operate across currencies and asset types. The OmiseGO blockchain has a decentralized exchange, liquidity provider mechanism, clearinghouse messaging network, and asset-backed blockchain gateway. The OmiseGO blockchain network is highly performant and scalable. The cost of securing the transaction value is externalized to other chains in a way which directly promotes the value of those chains.

B) Trends: Payments, Remittances, Digital decentralized banking

C) Future updates: 

i) OmiseGO recently announced that every Ethereum holder holding a minimum amount of 0.1ETH will receive an amount of OmiseGO tokens which are proportionate to their Ethereum holdings. 5% of the total OmiseGo tokens are set aside for this generous distribution move.

ii) OmiseGO has acquired Paysbuy, a major payment service provider in Thailand. OmiseGO’s CEO Jun reveals that McDonald’s in Thailand, with their presence in over 240 locations will start accepting OmiseGO as a method of payment. He is confident that this can be implemented by Mcdonald’s across Asia.

 

 

OmiseGO logo


3. Community:

Forbes featured OmiseGO as a Fintech rockstar. OmiseGO has a great community around them contributing directly or indirectly.

A. Investors:

  1. SBI Investments
  2. SMBC
  3. Ascend Capital
  4. SMDV
  5. Golden Gate Ventures
  6. East Ventures
  7. 500 Startups

Total funding raised: USD $150 million+

B. Team: 

  1. Jun Hasegawa: Founder/CEO at Omise, Director at Alpha-do INC., Co-founder/CEO at LIFEmee INC.
  2. Donnie Harinsut: COO/Co-founder at Omise, International Trading manager at Alpha-do INC.
  3. Wendall Davis: Product development lead at Omise, member of Original Ethereum founding team
  4. Thomas Greco: Special advisor at Omise.
  5. Vansa Chatikavanij: Managing Director at Omise.

C. Advisors:

  1. Joseph Poon: Lightening network co-author.
  2. Vitalik Buterin: Founder of Ethereum.
  3. Dr. Gavin Wood: Co-founder of Ethereum, founder of Parity and Polkadot.
  4. Jae Kwon: Creator of Tendermind and Cosmos network.
  5. Vlad Zamfir: Kasper(Ethereum) Research lead.
  6. Martin Becze: Ethereum web assembly creator
  7. Julian Zawistowski: Founder of Golem
  8. Prof. David Lee Kuo Chuen: Professor of Quantitative Finance, Singapore University of Social Sciences
  9. Pandia Jiang: Founder of LinkTime
  10. Roger Ver: CEO of bitcoin.com, First Major Backer of Earliest Crypto Startups

 

4. Unique Features:

  • NEO applications can be developed using all major programming.
  • Tie ups with influential people in China.
  • A collaboration of digital asset management with real world asset.

5. Downside / Risks:

  • Replicable
  • Not available on Poloniex. Use Bittrex. (Not a downside for most of the people since they have already moved their assets to Bittrex recently.)

6: Future: Considering the community and innovations, it may be seen as a good competitor against Ethereum for the 2nd place in Total Market cap after Bitcoin in China.

7: Technical Analysis: 

 

Analysis OMG Coinigy

 

The prices have dipped to a point where buying OmiseGO would seem a good choice for OmiseGO believers. This is a perfect entry point for those investors who have a long term return goal in their strategy. The community behind this is pretty solid which promotes this token’s potential to grow across Asia.

  • Market Cap: $633,129,435
  • Price: $6.44
  • OTE: 0.00141725-0.00150593 BTC
  • Volume(24h): $106,064,000
  • Circulating Supply: 98,312,024

8: Comments:

Omise aims to capture the remittance market in Asia via its decentralized banking applications and so far it has done everything right to grow. One could say it is an undervalued token. The people backing this project are influential in the cryptocurrency world. This is one of the strongest selling points for OmiseGo. Long term investors can use this token for their portfolio diversification and observe growth in the future.

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Bitcoin Hard Fork, creation of Bitcoin Cash and its impact on Bitcoin.

What impact will the Bitcoin Hard Fork and creation of Bitcoin Cash cryptocurrency have on Bitcoin?

  • For the last several years, the Bitcoin infrastructure has been struggling to handle a growing number of transactions hence technical experts recommended a new cryptocurrency creation that will solve its back-logging issues.
  • Since then Bitcoin miners and developers opinions were split over their vision on Bitcoin’s technical roadmap for the future.
  • These differing opinion within the community had been a prominent cause of the recent Bitcoin price fluctuations.
  • Eventually, on 01.08.2017, a Hard Fork created a split in Bitcoin resulting in the creation of a new cryptocurrency called Bitcoin Cash (BCH).
  • Although BCH will be based on blockchain technology, however, BCH is technically superior to its predecessor Bitcoin since it offers eight fold increase in transaction capacity and will combat high transaction fees that made mining larger blocks invalid.
  • Creation of BCH from Bitcoin through Hard Fork implies that Bitcoin owner will now own equal quantity of BCH as well (please note a similar event occurred last year as well on the Ethereum platform when a cryptocurrency Ethereum Classic was created).
  • Therefore, this Hard Fork also generated millions of dollars in new value for Bitcoin investors and at the time of writing, BCH is valued at USD 430.78 and Bitcoin is valued at USD 2737.50.

Weekly Technical Analysis (31.07.2017)

www.tradescrypt.com’s Weekly Technical Analysis gives investors important insights on fundamentally strong cryptocurrencies which includes Bitcoin, Ethereum, Litecoin, Ripple and AntShares(NEO).  It’s a quick read for investors at the start of the week which presents necessary statistics which could prove vital for considering investment position and making decisions during the week.

1.Bitcoin:BTC Coiningy 31.07.2017

1st August is approaching and we have witnessed BIP 91 Lock-in. The prices soared beyond USD $2800. This was followed by a correction of about 50%. Bitcoin is now trending in the range of USD $2700. Following are the statistical conclusions drawn from this week’s technical analysis:
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  • Risk/Reward Ratio: 0.23 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): USD $2555-$2670
  • Market Cap: USD $45,317,854,582
  • Circulating Supply: 16,479,100
  • Volume(24h): USD $705,815,000

2. Ethereum:ETH Coinigy 31.07.2017

 

Ethereum fell from 0.8064551 BTC to 0.06839837. However, in the last few hours, the price has soared a bit. Risk/reward ratio has improved yet far from a desirable ratio as compared to last week’s ratio. Ethereum ranges at around 0.0707 BTC and red candle sticks indicate a fall which could result in a correction that has already crossed 50% mark to rise up to 60%.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 1.13 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.07011476-0.06953873 BTC
  • Market Cap: USD $18,450,340,515
  • Circulating Supply: 93,675,096
  • Volume(24h): USD $601,013,000

3. Litecoin:

LTC Coinigy 31.07.3017

Litecoin fell since last week. After a short rise, we see a correction beyond 75%. If seller resistance sustains, this is a very good time to buy. One could anticipate the prices to go further down before the next rise. We are still observing a lot of potential in Litecoin which makes it a good coin to invest in.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 3.24 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.0145804-0.0146539 BTC
  • Market Cap: USD $2,112,147,194
  • Circulating Supply: 52,243,757
  • Volume(24h): USD $75,520,500

4. Ripple:

XRP Coinigy 31.07.3017

Ripple has seen a low of 0.00005674 BTC after a high of 0.00006930 BTC. Risk/Reward ratio has improved a lot as compared to that of last week. In spite of such a dip, Ripple has managed to be the star performer of 2017 with the growth of almost 4000% this year. Q2 growth of 2017 is beyond 1000%. With strong fundamentals and growing community, invest and hold is our recommended position.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 1.16 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.00005868-0.00005833 BTC
  • Market Cap: USD $6,330,824,924
  • Circulating Supply: 38,333,090,674
  • Volume(24h): USD $41,488,000

5. NEO/AntShares  (02.08.2017):

ANS Coinigy analysis

Antshares, now known as NEO has shown a straight spike earlier today. This was a good exit for short term gainers. We have mentioned the OTE for investors who would still want to put their money on this cryptocurrency.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Optimal Trade Entry(OTE): 0.00259614 -0.00257465 BTC
  • Market Cap: USD $386,283,000
  • Circulating Supply: 50,000,000
  • Volume(24h): USD $14,750,900

Information sources-

www.coinigy.com
www.coinmarketcap.com

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How similar are STOCK MARKETS and CRYPTOCURRENCIES?

Orthodox people seem to be averse to the cryptocurrency market but feel comfortable trading in the stock market since they are relatively unaware that both cryptocurrency market and stock markets are very similar in nature and functioning.

Yes, the cryptocurrency markets are presently volatile, however on the other hand they provide opportunities for very good returns if sound fundamentals and accurate intrinsic values are considered while making the investments.

Therefore www.tradescrypt.com believes that investment strategies in both cryptocurrency and stock markets will be similar provided there is a good understanding of the nature and business of the cryptocurrencies and hence they have been able to achieve good returns for the investors.

Some of these similarities between STOCK MARKET and CRYPTOCURRENCIES are listed below:

  • The value of both cryptocurrency and stocks are based on their business.
  • In both cases, the value is determined on supply and demand basis, that means it depends on how much people are willing to pay for a share.
  • Like stocks, cryptocurrencies can also be categorized into small cap (eg Voxels), mid cap (eg Ripple) and large cap (eg Ethereum and Bitcoins).
  • Similar to IPO’s in stock markets, cryptocurrencies offer a platform to technology companies/start-ups to raise capital through ICO.
  • Understanding company fundamental is important while investing in a stock, similarly understanding cryptocurrency fundamentals (such as technology, community etc) and their intrinsic value is very important to identify the multi-bagger cryptocurrencies of tomorrow.
  • A diversified investment is very important in the stock markets as well as in the cryptocurrency market to reduce risk and increase returns.
  • There are traders, speculators and medium / long term investors in stock markets, those are also present in the cryptocurrency market.
  • As understanding the company business is most important to invest in stock, similarly understanding cryptocurrency technology is the most important factor to multiply your returns by investing in them.

Eventually, only those who understand the market will succeed in the market.

With a team comprising of Techies, Engineers, Analysts, Entrepreneurs and Investment Banking professionals closely involved in the financial technology field, www.tradescrypt.com is able to understand the cryptocurrency market and is able to take a well-informed decision on the position investors should consider in the cryptocurrency market.

www.tradescrypt.com believes that by taking the right, reasonable and logical decisions, investors in the cryptocurrency market can multiply their wealth immensely.

Weekly Technical Analysis (24.07.2017)

www.tradescrypt.com’s Weekly Technical Analysis gives investors important insights on fundamentally strong cryptocurrencies which includes Bitcoin, Ethereum, Litecoin, Ripple and AntShares(NEO).  It’s a quick read for investors at the start of the week which presents necessary statistics which could prove vital for considering investment position and making decisions during the week.

1.Bitcoin:


Last week was a good week for Bitcoin HODLers / investors. We witnessed BIP 91 Lock-in. The prices had dipped below USD $2000. This price dip had exposed panic sellers while HODLers / investors benefitted from the ‘Buy & Hold’ position. After the Lock-in, the prices soared touching the USD $3000 mark.

Following are the statistical conclusions drawn from this week’s technical analysis:
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  • Risk/Reward Ratio: 1.33 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): USD $2690-$2710
  • Market Cap: USD $44,634,172,796
  • Circulating Supply: 16,466,225
  • Volume(24h): USD $917,334,000

2. Ethereum:

Ethereum fell from 0.10468 BTC to 0.082969. We witnessed a deep dive to 0.078271 earlier last week, which was a good entry point. With the addition of mega enterprises like MasterCard, Cisco Systems, Scotiabank and government bodies like Andhra Pradesh State Government (Indian State Government) accepting Ethereum blockchain, we believe Ethereum has the potential to become the top player.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 0.93 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.080697-0.0811797 BTC
  • Market Cap: USD $20,859,469,134
  • Circulating Supply: 93,509,610
  • Volume(24h): USD $588,710,000

3. Litecoin:

Litecoin fell since last week. Prices dipped from 0.021253 BTC to 0.016184 BTC. Recently, LocalCoinATM announced Litecoin support on Bitcoin ATMs in Toronto, Canada. We are still observing a lot of potential in Litecoin which makes the current prices a good entry point for cryptocurrency investors.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 2.8 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.016127-0.016271 BTC
  • Market Cap: USD $2,266,141,385
  • Circulating Supply: 52,141,232
  • Volume(24h): USD $209,066,000

4. Ripple:

Ripple has seen a low of 0.00006553 BTC after a high of 0.00008714 BTC. In spite of such a dip, Ripple has managed to be the star performer of 2017 with growth of almost 4000% this year. Q2 growth of 2017 is beyond 1000%. With strong fundamentals and growing community, invest and hold is our recommended position.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 0.31 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.00006745-0.00006816 BTC
  • Market Cap: USD $7,291,599,229
  • Circulating Supply: 38,291,387,790
  • Volume(24h): USD $111,551,000

5. AntShares:

With AntShares’ rebranding event on the charts, last week has been a great week for AntShares. It shot right from 0.0026667 BTC to 0.00331513 BTC. Rebranding and support / influence in China are the key factors to observe while analyzing this cryptocurrency. It is firmly believed to be China’s Ethereum.

Following are the statistical conclusions drawn from this week’s technical analysis:

  • Risk/Reward Ratio: 1.51 (Ideal ratio tends to 2)
  • Optimal Trade Entry(OTE): 0.0307167 -0.03028972 BTC
  • Market Cap: USD $413,683,000
  • Circulating Supply: 50,000,000
  • Volume(24h): USD $29,621,300

Information sources-

www.coinigy.com
www.coinmarketcap.com

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