submitted by hireahackerpro to u/hireahackerpro [link] [comments]
Dark Net Hacker
What is the dark web? How to access it and what you'll find
The dark web is part of the internet that isn't visible to search engines and requires the use of an anonymizing browser called Tor to be accessed.
Dark web definition
The dark web is a part of the internet that isn't indexed by search engines. You've no doubt heard talk of the “dark web” as a hotbed of criminal activity — and it is. Researchers Daniel Moore and Thomas Rid of King's College in London classified the contents of 2,723 live dark web sites over a five-week period in 2015 and found that 57% host illicit material.
A 2019 study, Into the Web of Profit, conducted by Dr. Michael McGuires at the University of Surrey, shows that things have become worse. The number of dark web listings that could harm an enterprise has risen by 20% since 2016. Of all listings (excluding those selling drugs), 60% could potentially harm enterprises.
You can buy credit card numbers, all manner of drugs, guns, counterfeit money, stolen subscription credentials, hacked Netflix accounts and software that helps you break into other people’s computers. Buy login credentials to a $50,000 Bank of America account for $500. Get $3,000 in counterfeit $20 bills for $600. Buy seven prepaid debit cards, each with a $2,500 balance, for $500 (express shipping included). A “lifetime” Netflix premium account goes for $6. You can hire hackers to attack computers for you. You can buy usernames and passwords.
But not everything is illegal, the dark web also has a legitimate side. For example, you can join a chess club or BlackBook, a social network described as the “the Facebook of Tor.”
Note: This post contains links to dark web sites that can only be accessed with the Tor browser, which can be downloaded for free at https://www.torproject.org.
Deep web vs. dark web: What’s the difference?
The terms “deep web” and “dark web” are sometimes used interchangeably, but they are not the same. Deep web refers to anything on the internet that is not indexed by and, therefore, accessible via a search engine like Google. Deep web content includes anything behind a paywall or requires sign-in credentials. It also includes any content that its owners have blocked web crawlers from indexing.
Medical records, fee-based content, membership websites, and confidential corporate web pages are just a few examples of what makes up the deep web. Estimates place the size of the deep web at between 96% and 99% of the internet. Only a tiny portion of the internet is accessible through a standard web browser—generally known as the “clear web”.
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The dark web is a subset of the deep web that is intentionally hidden, requiring a specific browser—Tor—to access, as explained below. No one really knows the size of the dark web, but most estimates put it at around 5% of the total internet. Again, not all the dark web is used for illicit purposes despite its ominous-sounding name.
Dark web tools and services that present enterprise risk
The Into the Web of Profit report identified 12 categories of tools or services that could present a risk in the form of a network breach or data compromise:
Infection or attacks, including malware, distributed denial of service (DDoS) and botnets
Access, including remote access Trojans (RATs), keyloggers and exploits
Espionage, including services, customization and targeting
Support services such as tutorials
Intellectual property/trade secrets
Other emerging threats
The report also outlined three risk variables for each category:
Devaluing the enterprise, which could include undermining brand trust, reputational damage or losing ground to a competitor
Disrupting the enterprise, which could include DDoS attacks or other malware that affects business operations
Defrauding the enterprise, which could include IP theft or espionage that impairs a company's ability to compete or causes a direct financial loss
Dark web browser
All this activity, this vision of a bustling marketplace, might make you think that navigating the dark web is easy. It isn’t. The place is as messy and chaotic as you would expect when everyone is anonymous, and a substantial minority are out to scam others.
Accessing the dark web requires the use of an anonymizing browser called Tor. The Tor browser routes your web page requests through a series of proxy servers operated by thousands of volunteers around the globe, rendering your IP address unidentifiable and untraceable. Tor works like magic, but the result is an experience that’s like the dark web itself: unpredictable, unreliable and maddeningly slow.
[ Is your data being sold? What you need to know about monitoring the dark web. | Get the latest from CSO by signing up for our newsletters. ]
Still, for those willing to put up with the inconvenience, the dark web provides a memorable glimpse at the seamy underbelly of the human experience – without the risk of skulking around in a dark alley.
Dark web search engine
Dark web search engines exist, but even the best are challenged to keep up with the constantly shifting landscape. The experience is reminiscent of searching the web in the late 1990s. Even one of the best search engines, called Grams, returns results that are repetitive and often irrelevant to the query. Link lists like The Hidden Wiki are another option, but even indices also return a frustrating number of timed-out connections and 404 errors.
Dark web sites
Dark web sites look pretty much like any other site, but there are important differences. One is the naming structure. Instead of ending in .com or .co, dark web sites end in .onion. That’s “a special-use top level domain suffix designating an anonymous hidden service reachable via the Tor network,” according to Wikipedia. Browsers with the appropriate proxy can reach these sites, but others can’t.
Dark web sites also use a scrambled naming structure that creates URLs that are often impossible to remember. For example, a popular commerce site called Dream Market goes by the unintelligible address of “eajwlvm3z2lcca76.onion.”
Many dark websites are set up by scammers, who constantly move around to avoid the wrath of their victims. Even commerce sites that may have existed for a year or more can suddenly disappear if the owners decide to cash in and flee with the escrow money they’re holding on behalf of customers.
Law enforcement officials are getting better at finding and prosecuting owners of sites that sell illicit goods and services. In the summer of 2017, a team of cyber cops from three countries successfully shut down AlphaBay, the dark web’s largest source of contraband, sending shudders throughout the network. But many merchants simply migrated elsewhere.
The anonymous nature of the Tor network also makes it especially vulnerable to DDoS, said Patrick Tiquet, Director of Security & Architecture at Keeper Security, and the company’s resident expert on the topic. “Sites are constantly changing addresses to avoid DDoS, which makes for a very dynamic environment,” he said. As a result, “The quality of search varies widely, and a lot of material is outdated.”
Get a hands-on, inside look at the dark web | Salted Hash Ep 25
Commerce on the dark web
The dark web has flourished thanks to bitcoin, the crypto-currency that enables two parties to conduct a trusted transaction without knowing each other’s identity. “Bitcoin has been a major factor in the growth of the dark web, and the dark web has been a big factor in the growth of bitcoin,” says Tiquet.
Nearly all dark web commerce sites conduct transactions in bitcoin or some variant, but that doesn’t mean it’s safe to do business there. The inherent anonymity of the place attracts scammers and thieves, but what do you expect when buying guns or drugs is your objective?
Dark web commerce sites have the same features as any e-retail operation, including ratings/reviews, shopping carts and forums, but there are important differences. One is quality control. When both buyers and sellers are anonymous, the credibility of any ratings system is dubious. Ratings are easily manipulated, and even sellers with long track records have been known to suddenly disappear with their customers’ crypto-coins, only to set up shop later under a different alias.
Most e-commerce providers offer some kind of escrow service that keeps customer funds on hold until the product has been delivered. However, in the event of a dispute don’t expect service with a smile. It’s pretty much up to the buyer and the seller to duke it out. Every communication is encrypted, so even the simplest transaction requires a PGP key.
Even completing a transaction is no guarantee that the goods will arrive. Many need to cross international borders, and customs officials are cracking down on suspicious packages. The dark web news site Deep.Dot.Web teems with stories of buyers who have been arrested or jailed for attempted purchases.
How the dark web has gone corporate
Is the dark web illegal?
We don’t want to leave you with the impression that everything on the dark web is nefarious or illegal. The Tor network began as an anonymous communications channel, and it still serves a valuable purpose in helping people communicate in environments that are hostile to free speech. “A lot of people use it in countries where there’s eavesdropping or where internet access is criminalized,” Tiquet said.
If you want to learn all about privacy protection or cryptocurrency, the dark web has plenty to offer. There are a variety of private and encrypted email services, instructions for installing an anonymous operating system and advanced tips for the privacy-conscious.
There’s also material that you wouldn’t be surprised to find on the public web, such as links to full-text editions of hard-to-find books, collections of political news from mainstream websites and a guide to the steam tunnels under the Virginia Tech campus. You can conduct discussions about current events anonymously on Intel Exchange. There are several whistleblower sites, including a dark web version of Wikileaks. Pirate Bay, a BitTorrent site that law enforcement officials have repeatedly shut down, is alive and well there. Even Facebook has a dark web presence.
“More and more legitimate web companies are starting to have presences there,” Tiquet said. “It shows that they’re aware, they’re cutting edge and in the know.”
There’s also plenty of practical value for some organizations. Law enforcement agencies keep an ear to the ground on the dark web looking for stolen data from recent security breaches that might lead to a trail to the perpetrators. Many mainstream media organizations monitor whistleblower sites looking for news.
Staying on top of the hacker underground
Keeper’s Patrick Tiquet checks in regularly because it’s important for him to be on top of what’s happening in the hacker underground. “I use the dark web for situational awareness, threat analysis and keeping an eye on what’s going on,” he said will. “I want to know what information is available and have an external lens into the digital assets that are being monetized – this gives us insight on what hackers are targeting.”
If you find your own information on the dark web, there’s precious little you can do about it, but at least you’ll know you’ve been compromised. Bottom line: If you can tolerate the lousy performance, unpredictable availability, and occasional shock factor of the dark web, it’s worth a visit. Just don’t buy anything there.
Hiya folks! With this update we will finally be 100% caught up with the latest. Let’s go! Here’s your week at Parachute + partners (21 Feb - 27 Feb'20):submitted by abhijoysarkar to ParachuteToken [link] [comments]
As mentioned 2 weeks back, Alexis announced the start of a new style of raffle from this week. 300k $PAR in the pot to be won! Bose hosted a Friday Quiz in TTR on movies with a 10k $PAR prize pool. Cap shared a unique bit of trivia from the tipbotverse: ChangeTip, a bitcoin tipbot launched 7 years back, was acquired by Airbnb in 2016 that led to its closure. A crypto pioneer that was way ahead of its time. The usual suspects continue to be on top of the Fantasy Premier Leagure (#FPL) leaderboard – LordHades, Alexis and Novelcloud as per the latest update shared by LH. Alejandro hosted a gun-mode CoD game in the Parachute War Zone followed by a free-for-all for $PAR prizes. Tavo announced another CoD Battle Royale in the Parachute War Zone to be held next week. Afful’s TTR trivia was fun as always. Charlotte hosted another trivia in TTR as well for a 10k $PAR prize pool. Victor held one in TTR with another 10k $PAR pot as well. GamerBoy’s trivia in TTR this week was based on Kindergarten Geography. Haha! Belated Birthday wishes to Victor. Two-for-Tuesdays by Gian for this week had the theme rap/reggae/reggaeton. Like last week, Sebastian set up a YouTube playlist to compile all the entries. For #wholesomewed, Parachuters put on their creative hats as they made some epic artwork based on a primary shape shared by Jason. So much talent! There’s $PAR to be won! In the latest project update shared by Cap, ParJar is in final stages of testing with Transak, ParJar integrated coin-swaps are being worked on at the moment and $PAR-based Dex to be launched in the coming weeks in partnership with Switch. Jason launched a new event for Thursdays called #discussionThursday from this week. The first discussion series revolved around "something you don't understand". The goal is "hopefully someone that does understand it can explain it". Good conversations and altruism gets $PAR tips. TTR crew hosted a fun “guess the admin” contest based on the Parachute Christmas artwork.
Happy Carnival to you too Rene
Just a sampling from all the #wholesomewed entries
20k $AXPR was burned as part of the weekly aXpire burn event. aXpire COO Matthew Markham wrote about how technological differentiators give PEs an edge over public markets. The latest Bilr blog post talks about disruptive technologies in the legal industry. 2gether CEO Ramon Ferraz appeared in an IEB podcast to talk about Neobanks. YouTuber FunOntheRide’s latest video covers collaborative economy and how 2gether plays a role in it. Head of Marketing, Laura Braulio explained must-do’s in marketing strategies for fintechs in her article which was published on ClickZ. The XIO DApp went into the final stages of unit testing this week. Beta tests should start soon. For #XIOSocial chatter, Citizens discussed the semantics of the term “crowdstaking”. Ethos’ parent company Voyager released the full Android version of its app this week. Switch-backed McAfeeDex is slated for some updates soon. Read about what’s coming up from John McAfee’s tweet. Plus, a new privacy coin “ghost” is on the horizon. $ESH holders are expected to get a taste of it on launch. For the latest update on Switch, click here. Fantom’s $FTM was one of the winners of a public vote to get listed on ZelCore. As an update to the fantom.rocks tool released last week by GoFantom (a Fantom validator), this week a dApp named Supercharge was released on top of it. Supercharge allows users to send 20 test transactions to demonstrate the speed of consensus. The DAO Maker shared a compilation of Fantom’s 2019 updates. For the 2020 project plan, click here. This was followed by a detailed 2020 roadmap. Too long? No sweat! This graphical representation of the roadmap by Generation Crypto is here to rescue you. Or, if you would rather watch a video, CMO Michael Chen made one. For notes, click here. The first version of Uptrennd’s mobile redesign is here. Congratulations to TREOS for winning the Round 1 of the Uptrennd free advertising package contest that launched last week. Voting for Round 2 started this week with Fantom included in this round. Banano ended up winning the second round and going head to head with TREOS in the finals. The first 2UP Tuesday kicked off this week with every upvote counting for twice the normal points (with the same rules applying for downvotes). Sweet! Uptrennd founder Jeff Kirdeikis was invited to speak at the EntrepreneurShip cruise event. Don’t forget the epic giveaway mentioned.
First sneak peek of Uptrennd’s new mobile design
Catch up on Distric0x’s Weekly update here. If you missed the DappDigest, the crew’s got your back. Their video walkthrough of ETHDenver covers snippets from the event along with Brady’s on-stage performance and an interview of Dmitry Buterin (Vitalik Buterin’s father). Read about how the recent fintech M&A deals will influence markets in this article by Hydrogen. The team sat down for an AMA with Crypto Cabital this week and also hosted a 150k $HYDRO giveaway. Fintech nerds, check out Hydro’s explainer blog post on open banking and WSO2. Is the project ticking off its roadmap items on time? Click here to find out. As a 2020 cohort member of the MassChallenge Fintech accelerator, Hydro’s Senior Director for Strategic Partnerships, Ken Kavanaugh travelled to Boston to talk about “platformication in fintech” at their meetup. If you are attending the Milwaukee Blockchain Conference in March, don’t forget to say Hi to Biz Dev Lead Mark Anstead where he will be a featured speaker. If you haven’t booked your tickets yet, there’s a 50% discount coupon available for you. $HYDRO got listed on DeFi aggregator Totle this week. How does Sentivate aim to solve HTTP / TCP bottlenecks? Click here to find out. For a primer on UDSP, click here. The Mycro Hunter landing page went live this week. OST’s Pepo is the official community app and partner of Europe-based Ethereum Community Conference (EthCC) where it will also be collaborating with Epicenter podcast for the event. The first browser version of Pepo was released. Crypto exchange Mine Digital will be joining SelfKey’s exchange marketplace. SelfKey’s R&D team shared a 2020 update on the identity management space and how the project aims to place itself in this segment.
Early preview of the SelfKey Mobile Wallet to be submitted to App Store for review
For the latest Constellation community update, click here. Don’t forget to send in your questions for the AMA happening next week. Attendees of VeneCoiners meetup in Argentina next week, don’t forget to say Hi to the crew from Wibson who will be presenting the Rewards Marketplace at the event. The team also published a paper on “WibsonTree” which preserves data privacy when interacting with an agent. They hosted an Ethereum meetup this week to discuss DeFi. Here’s a video demo of how fast the Harmony mainnet is. The weekly #pow tweet thread summarises updates from across the team. KuCoin’s $ONE token swap is now complete. A new page was launched to monitor mainnet and testnet status. The crew attended a Binance meetup in Ukraine to talk about latest project updates. Harmony announced a partnership with IBC Media to incubate and accelerate Indian fintech startups. Safe Haven’s digital inheritance solution, Inheriti, will be available on the Harmony chain. $ONE was listed on MathWallet. Intellishare co-founder Nicholas Wan shared a sneak peek of the testnet mobile UI. dGen listed GET Protocol’s GUTS Tickets as one of the notable startups in the Dutch blockchain space in their Blockchain in Europe 2020 Review report. For a project overview click here – nicely summarised by Generation Crypto. GUTS will be ticketing 3 new shows of Chef’Special. Global Crypto Alliance live streamed another demo of its IoT prototype smartlock device being operated through $CALL tokens. The team also hosted a fun quiz on their Telegram this week. YouTuber Crypto Rich interviewed the crew on all things $CALL (Part I, Part II). Nik Patel’s detailed research report on COTI was published this week. $COTI was added to the Staking Rewards platform. And here’s a biggie, Binance listed both the ERC20 and BEP2 versions of the token this week with a bonus airdrop for deposits. Woot! Before the listing frenzy started, the team took a moment to take stock of the situation. A big listing like Binance leads to a lot of new eyeballs that could trigger scams. COTI crew shared their anti-scam guide for this reason. DOMSCRYPTO covered the project in their latest video. DoYourTip was covered in an iHODL news feature.
And with that, we close for this week at Parachute. See you again with another update. Ciao!
This post intends to illustrate the dynamics and fundamentals related to the mechanics and use of the Quant Network Utility Token (QNT), in order to provide the community with greater clarity around what holding the token actually means.submitted by mr_sonic to CryptoCurrency [link] [comments]
This is a follow-up on two articles David W previously wrote about Quant Network’s prospects and potential, which you can find here:
On that note, I have noticed that many wish to see institutional investors getting involved in the crypto space for their purchase power, but the one thing they would bring and that is most needed in my opinion is fundamental analysis and valuation expectations based on facts. Indeed, equity investors can probably access 20 or 30 reports that are 15 pages long and updated on a quarterly basis about any blue chip stock they are invested in, but how many of such (professional) analyst reports can you consult for your favorite crypto coins? Let me have a guess: none. This is unfortunate, and it is a further reason to look into the situation in more details.
To be clear, this article is not about providing figures on the expected valuation of the token, but rather about providing the community with a deeper analysis to better understand its meaning and valuation context. This includes going through the (vast) differences between a Utility Token and a Company Share since I understand it is still blurry in some people’s mind. I will incorporate my thoughts and perspective on these matters, which should not be regarded as a single source of truth but rather as an attempt to “dig deeper”.
In order to share these thoughts with you in the most pertinent manner, I have actually entirely modelled the Quant Treasury function and analysed how the QNT token would react to various scenarios based on a number of different factors. That does not mean there is any universal truth to be told, but it did help in clarifying how things work (with my understanding of the current ruleset at least, which may also evolve over time). This is an important safety net: if the intensity of speculation in crypto markets was to go lower from here, what would happen to the token price? How would Quant Treasury help support it? If the market can feel comfortable with such situation and the underlying demand for the token, then it can feel comfortable to take it higher based on future growth expectations — and that’s how it should be.
Finally, to help shed light on different areas, I must confess that I will have to go through some technicalities on how this all works and what a Utility Token actually is. That is the price to pay to gain that further, necessary knowledge and be in a position to assess the situation more thoroughly — but I will make it as readable as I possibly can, so… if are you ready, let’s start!
A Utility Token vs. a Company Share: what is the difference?It is probably fair to say that many people involved in the crypto space are unfamiliar with certain key financial terms or concepts, simply because finance is not necessarily everyone’s background (and that is absolutely fine!). In addition, Digital Assets bring some very novel concepts, which means that everyone has to adapt in any case.
Therefore, I suggest we start with a comparison of the characteristics underpinning the QNT Utility Token and a Quant Network Company Share (as you may know, the Company Shares are currently privately held by the Quant Network founders). I believe it is important to look at this comparison for two reasons:
What is on the right hand side of a balance sheet is the money a company has, and what is on the left hand side is how it uses it. Broadly speaking, the money the company has may come from the owners (Equity) or from the creditors (Debt). If I were to apply these concepts to an individual (you!), “Equity” is your net worth, “Debt” is your mortgage and other debt, and “Assets” is your house, car, savings, investments, crypto, etc.
As you can see, a Company Share and a Utility Token are found in different parts of the balance sheet — and that, in itself, is a major difference! They indeed serve two very different purposes:
On the other hand, as a Utility Token holder, you have no such rights related to the company’s profits or management, BUT any usage of the platform has to go through the token you hold — and that has novel, interesting facets.
A Utility Token vs. a Company Share: what happens in practice?Before we dig further, let’s now remind ourselves of the economic utilities of the QNT token (i.e. in addition to signing and encrypting transactions):
Arbitrary figures from myself (i.e. no currency, no unit), based on an indicative 20% Net Income Ratio and a 40% Dividend yield
We have now two different perspectives:
It is however too early to reach any conclusion, so we now need to dig one level deeper again.
More considerations around Company SharesAs we discussed, with a Company Share, you possess a fraction of the company’s ownership and hence you have access to profits (and losses!). So how do typical Net Income results look in the technology industry? What sort of Dividend is usually paid? What sort of market valuations are subsequently achieved?
Let’s find out:
As you can see, the typical Net Income Ratio varies between around 10% and 20% in the technology/software industry (using the above illustrated peer group). The ratio illustrates the proportion of Net Income extracted from Revenues.
In addition, money is returned to Company Shareholders in the form of a Dividend (i.e. a portion of the Net Income) and in the form of Share repurchases (whereby the company uses its excess cash position to buy back shares from Shareholders and hence diminish the number of Shares available). A company may however prefer to not redistribute any of the profits, and retain them instead to fund further business growth — Alphabet (Google) is a good example in this respect.
Interestingly, as you can see on the far right of the table, the market capitalisations of these companies reflect high multiples of their Net Income as investors expect the companies to prosper in the future and generate larger profits. If you wished to explore these ideas further, I recommend also looking into the Return on Equity ratio which takes into account the amount of resources (i.e. Capital/Equity) put to work to generate the companies’ profits.
It is also to be noted that the number of Company Shares outstanding may vary over time. Indeed, aside from Share repurchases that diminish the number of Shares available to the market, additional Shares may be issued to raise additional funds from the market hence diluting the ownership of existing Shareholders.
Finally, (regular) Company Shares are structured in the same way across companies and industries, which brings a key benefit of having them easily comparable/benchmarkable against one another for investors. That is not the case for Utility Tokens, but they come with the benefit of having a lot more flexible use cases.
More considerations around the QNT tokenAs discussed, the Utility Token model is quite novel and each token has unique functions designed for the system it is associated with. That does not make value assessment easy, since all Utility Tokens are different, and this is a further reason to have a detailed look into the QNT case.
As a start, all assets that are used in a speculative way embed two components into their price:
A) one that represents what the asset is worth today, and
B) one that represents what it may be worth in the future.
Depending on whether the future looks bright or not, a price premium or a price discount may be attached to the asset price.
This is similar to what we just saw with Company Shares valuation multiples, and it is valid across markets. For instance, Microsoft generates around USD 21bn in annual Net Income these days, but the cost of acquiring it entirely is USD 1,094bn (!). This speculative effect is particularly visible in the crypto sector since valuation levels are usually high whilst usage/adoption levels are usually low for now.
So what about QNT? As mentioned, the QNT Utility model has novel, interesting facets. Since QNT is required to access and use the Overledger system, it is important to appreciate that Quant Network company has three means of action regarding the QNT token:
We also have to appreciate how the QNT distribution will always look like, it can be broken down as follows:
A) QNT tokens held by the QNT Community
B) QNT tokens held by Quant Network that are locked (i.e. those related to Licences)
C) QNT tokens held by Quant Network that are unlocked (i.e. those related to other usage, such as consumption fees and Gateways)
D) the minimum QNT amount held by all users of the platform (more information on this front soon)
So now that the situation is set, how would we assess Quant Network’s business activity effect on the QNT token?
STEP 1: We would need to define the range of minimum/maximum amounts of QNT which Quant Network would want to keep as liquid reserves (i.e. unlocked) on an ongoing basis. This affects key variables such as the proportion of market purchases vs. the use of their own reserves, and the amount of QNT sold back to the market. Also, interestingly, if Quant Network never wanted to keep less than, for instance, 1 million QNT tokens as liquid reserves, these 1 million tokens would have a similar effect on the market as the locked tokens because they would never be sold.
STEP 2: We would need to define the amount of revenues that are related to QNT. As we know, Overledger Licences, Usage and Gateways generate revenues converted into QNT (or in QNT directly). So the correlation is strong between revenues and QNT needs. Interestingly, the cost of a licence is probably relatively low today in order to facilitate adoption and testing, but it will surely increase over time. The same goes for usage fees, especially as we move from testing/pilot phases to mass implementation. The number of clients will also increase. The Community version of Overledger is also set to officially launch next year. More information on revenue potential can be found later in this article.
STEP 3: We would need to define an evolution of the QNT token price over time and see how things develop with regards to Quant Network’s net purchase/sale of tokens every month (i.e. tokens required - tokens sold = net purchased/sold tokens).
Once assumptions are made, what do we observe?
In an undistorted environment, there is a positive correlation between Quant Network’s QNT-related revenues and the market capitalisation they occupy (i.e. the Quant Network share of the token distribution multiplied by the QNT price). However, this correlation can get heavily twisted as the speculative market prices a premium to the QNT price (i.e. anticipating higher revenues). As we will see, a persistent discount is not really possible as Quant Treasury would mechanically have to step in with large market purchases, which would provide strong support to the QNT price.
In addition, volatility is to be added to the equation since QNT volatility is likely to be (much) higher than that of revenues which can create important year-on-year disparities. For instance, Quant Treasury may lock a lot of tokens at a low price one year, and be well in excess of required tokens the next year if the QNT token price has significantly increased (and vice versa). This is not an issue per se, but this would impact the amount of tokens bought/sold on an ongoing basis by Quant Treasury as reserves inflate/deflate.
If we put aside the distortions created by speculation on the QNT price, and the subsequent impact on the excess/deficiency of Quant Network token reserves (whose level is also pro-actively managed by the company, as previously discussed), the economic system works as follows:
High QNT price vs. Revenue levels: The value of reserves is inflated, fewer tokens need to be bought for the level of revenues generated, Quant Treasury provides low support to the QNT price, its share of the token distribution diminishes.
Low QNT price vs. Revenue levels: Reserves run out, a higher number of tokens needs to be bought for the level of revenues generated, Quant Treasury provides higher support to the QNT price, its share of the token distribution increases.
The key here is that, whatever speculation on future revenue levels does to the token in the first place, if the QNT price was falling and reaching a level that does not reflect the prevailing revenue levels of Overledger at a given time, then Quant Treasury would require a larger amount of tokens to cover the business needs which would mean the depletion of their reserves, larger purchases from the market and strong support for the QNT price from here. This is the safety net we want to see, coming from usage! Indeed, in other words, if the QNT price went very high very quickly, Quant Treasury may not be seen buying much tokens since their reserves would be inflated BUT that fall back mechanics purely based on usage would be there to safeguard QNT holders from the QNT price falling below a certain level.
I would assume this makes sense for most, and you might now wonder why have I highlighted the bottom part about the token distribution in red? That is because there is an ongoing battle between the QNT community and Quant Treasury — and this is very interesting.
The ecosystem will show how big a share is the community willing to let Quant Network represent. The community actually sets the price for the purchases, and the token distribution fluctuates depending on the metrics we discussed. An equilibrium will be formed based on the confidence the market has in Quant Network’s future revenue generation. Moreover, the QNT community could perceive the token as a Store of Value and be happy to hold 80/90% of all tokens for instance, or it could perceive QNT as more dynamic or risky and be happy to only represent 60/70% of the distribution. Needless to say that, considering my previous articles on the potential of Overledger, I think we will tend more towards the former scenario. Indeed, if you wished to store wealth with a technology-agnostic, future proof, globally adopted, revenue-providing (through Gateways) Network of Networks on which most of the digitalised value is flowing through — wouldn’t you see QNT as an appealing value proposition?
In a nutshell, it all comes down to the Overledger revenue levels and the QNT holders’ resistence to buy pressure from Quant Treasury. Therefore, if you are confident in the Overledger revenue generation and wish to see the QNT token price go up, more than ever, do not sell your tokens!
What about the locked tokens? There will always be a certain amount of tokens that are entirely taken out of circulation, but Quant Network company will always keep additional unlocked tokens on top of that (those they receive and manage as buffer) and that means that locked tokens will always be a subset of what Quant Network possesses. I do not know whether fees will primarily be concentrated on the licencing side vs. the usage side, but if that were to be the case then it would be even better as a higher amount of tokens would be taken out of circulation for good.
Finally, as long as the company operates, the revenues will always represent a certain amount of money whereas this is not the case for profits which may not appear before years (e.g. during the first years, during an economic/business downturn, etc.). As an illustration, a company like Uber has seen vast increases in revenues since it launched but never made any profit! Therefore, the demand for the QNT token benefits from good resilience from that perspective.
Quant Network vs. QNT community — What proportion of the QNT distribution will each represent?
How much revenues can Overledger generate?I suggest we start with the basis of what the Quant Network business is about: connecting networks together, building new-generation hyper-decentralised apps on top (called “mApps”), and creating network effects.
Network effects are best defined by Metcalfe’s law which states: “the effect of a telecommunications network is proportional to the square of the number of connected users of the system” (Source: Wikipedia). This is illustrated by the picture below, which demonstrates the increasing number of possible connections for each new user added to the network. This was also recently discussed in a YouTube podcast by QNT community members “Luke” and “Ghost of St. Miklos” which you can watch here.
This means that, as Overledger continues to connect more and more DLTs of all types between themselves and also with legacy systems, the number of users (humans or machines) connected to this Network of Networks will grow substantially — and the number of possible connections between participants will in turn grow exponentially. This will increase the value of the network, and hence the level of fees associated with getting access to it. This forms the basis of expected, future revenue generation and especially in a context where Overledger remains unique as of today and embraced by many of the largest institutions in the world (see the detailed summary on the matter from community member “Seq” here).
On top of this network, multi-chain hyper-decentralised applications (‘mApps’) can be built — which are an upgrade to existing dApps that use only one chain at a time and hence only benefit from the user base and functionalities of the given chain. Overledger mApps can leverage on the users and abilities of all connected chains at the same time, horizontal scaling, the ability to write/move code in any language across chains as required, write smart contracts on blockchains that do not support them (e.g. Bitcoin), and provide easier connection to other systems. dApps have barely had any success so far, as discussed in my first article, but mApps could provide the market with the necessary tools to build applications that can complement or rival what can be found on the Apple or Google Play store.
Also, the flexibility of Overledger enables Quant Network to target a large number of industries and to connect them all together. A sample of use cases can be found in the following illustration:
It is to be noted that one of the use cases, namely the tokenisation of the entire world’s assets, represents a market worth hundreds of trillions of USD and that is not even including the huge amount of illiquid assets not currently traded on traditional Capital Markets which could benefit from the tokenisation process. More information on the topic can be found in my previous article fully focused on the potential of Overledger to capture value from the structural shift in the world’s assets and machine-related data/value transfers.
Finally, we can look at what well established companies with a similar technology profile have been able to achieve. Overledger is an Operating System for DLTs and legacy systems on top of which applications can be built. The comparison to Microsoft Windows and the suite of Microsoft Software running on top (e.g. Microsoft Office) is an obvious one from that perspective to gauge the longer term potential.
As you can see below, Microsoft’s flagship softwares such as Windows and Office each generate tens of billions of USD of revenues every year:
We can also look at Oracle, the second largest Enterprise software company in the world:
We can finally look at what the Apple store and the Google Play store generate, since the Quant Network “mApp store” for the community side of Overledger will look to replicate a similar business model with hyper-decentralised applications:
Source: Worldwide total revenue by app store, 2018 ($bn)
The above means total revenues of around USD 70bn in 2018 for the Apple store and Google Play store combined, and the market is getting bigger year-on-year! Also, again, these (indicative!) reference points for Overledger come in the context of the Community version of the system only, since the Enterprise version represents a separate set of verticals more comparable to the likes of Microsoft and Oracle which we just looked at.
ConclusionI hope this article helped shed further light on the QNT token and how the various market and business parameters will influence its behavior over time, as the Quant Network business is expected to grow exponentially in the coming years.
In the recent Forbes interview, Quant Network’s CEO (Gilbert Verdian) stated : “Our potential to grow is uncapped as we change and transform industries by creating a secure layer between them at speed. Our vision is to build a mass version of what I call an internet of trust, where value can be securely transferred between global partners not relying on defunct internet security but rather that of blockchain.”.
This is highly encouraging with regards to business prospects and also in comparison to what other companies have been able to achieve since the Web as we know it today emerged (e.g. Microsoft, Google, Apple, etc.). The Internet is now entering a new phase, with DLT technology at its core, and Overledger is set to be at the forefront of this new paradigm which will surely offer a vast array of new opportunities across sectors.
I believe it is an exciting time for all of us to be part of the journey, as long as any financial commitment is made with a good sense of responsibility and understanding of what success comes down to. “Crypto” is still immature in many respects, and the emergence of a dedicated regulatory framework combined with the expected gradual, selective entrance of institutional money managers will hopefully help shed further light and protect retail token holders from the misunderstandings, misinformation and misconduct which too many have suffered from in the last years.
Thanks for your time and interest.
First article: “The reasons why Quant Network (QNT) will rise to the Top of the crypto sphere in the coming months”
Second article: “The potential of Quant Network’s technology to capture value from the structural shift in the World’s assets and machine-related data/value transfers”
October 2019 City AM interview of Gilbert Verdian (CEO): Click here
October 2019 Blockchain Brad interview of Gilbert Verdian (CEO): Click here
July 2019 Blockchain Brad interview of Gilbert Verdian (CEO): Click here
February 2019 Blockchain Brad interview of Gilbert Verdian (CEO): Click here
About the original author of the article:
My name is David and I spent years in the Investment Banking industry in London. I hold QNT tokens and the above views are based on my own thoughts and research only. I am not affiliated with the Quant Network team in any way. This is not investment advice, please do your own research and understand what you are buying before doing so. It is also my belief that more than 90% of all other crypto projects will fail because what matters is what is getting adopted; please do not put more money at risk than you can afford to lose.
submitted by Floris-Jan to aelfofficial [link] [comments]
Airdrops are so 2017, free money was fun while it lasted but now when someone says free money in crypto, the first thoughts are scams and ponzi schemes. But in 2020, there is a way to earn free money, in a legitimate, common practice, and logical manner — staking.
Staking is the core concept behind the Proof-of-Stake (PoS) consensus protocol that is quickly becoming an industry standard throughout blockchain projects. PoS allows blockchains to scale effectively without compromising on security and resource efficiency. Projects that incorporate staking include aelf, Dash, EOS, Cosmos, Cardano, Dfinity and many others.
PoW — Why changeFirst, let’s look at some of the issues facing Proof-of-Work (PoW) consensus that led to the development of PoS.
Consistent Fiat Injection — The majority of miners will be paying for their electricity in fiat currency. At a conservative rate of $0.1 USD per kWh, the network currently uses 73.12 TWh per year. This equates to an average daily cost of over $20 million USD. This means every day around $20 million of fiat currency is effectively being injected into the bitcoin network. Although this concept is somewhat flawed in the sense that the same amount of bitcoin will be released each day regardless of how much is spent on electricity, I’m looking at this from the eyes of the miners, they are reducing their fiat bags and increasing their bitcoin bags. This change of bags is the essence of this point which will inevitably encourage crypto spending. If the bitcoin bags were increased but fiat bags did not decrease, then there would be less incentive to spend the bitcoin, as would see in a staking ecosystem.
PoS VariationsDifferent approaches have been taken to tackle different issues the PoS protocol faces. Will Little has an excellent article explaining this and more in PoS, but let me take an excerpt from his piece to go through them:
Earning Your StakeIn order to understand how one can earn money from these networks, I’ll break them down into 3 categories: Simple staking, Running nodes, and Voting.
Simple Staking - This is the simplest of the 3 methods and requires almost no action by the user. Certain networks will reward users by simply holding tokens in a specified wallet. These rewards are generally minimal but are the easiest way to earn.
Running a node - This method provides the greatest rewards but also requires the greatest action by the user and most likely will require ongoing maintenance. Generally speaking, networks will require nodes to stake a certain amount of tokens often amounting to thousands of dollars. In DPoS systems, these nodes must be voted in by other users on the network and must continue to provide confidence to their supporters. Some companies will setup nodes and allow users to participate by contributing to the minimum staking amount, with a similar concept to PoW mining pools.
Voting - This mechanism works hand in hand with running nodes in relation to DPoS networks. Users are encouraged to vote for their preferred nodes by staking tokens as votes. Each vote will unlock a small amount of rewards for each voter, the nodes are normally the ones to provide these rewards as a portion of their own reward for running a node.
Aelf’s DPoS systemThe aelf consensus protocol utilizes a form of DPoS. There are two versions of nodes on the network, active nodes & backup nodes (official names yet to be announced). Active nodes run the network and produce the blocks, while the backup nodes complete minor tasks and are on standby should any active nodes go offline or act maliciously. These nodes are selected based upon their number of votes received. Initially the top 17 nodes will be selected as active nodes, while the next 100 will stand as the backup ones, each voting period each node may change position should they receive more or less votes than the previous period. In order to be considered as a node, one must stake a minimum amount of ELF tokens (yet to be announced).
In order to participate as a voter, there is no minimum amount of tokens to be staked. When one stakes, their tokens will be locked for a designated amount of time, selected by the voter from the preset periods. If users pull their tokens out before this locked period has expired no rewards are received, but if they leave them locked for the entire time frame they will receive the set reward, and the tokens will be automatically rolled over into the next locked period. As a result, should a voter decide, once their votes are cast, they can continue to receive rewards without any further action needed.
Many projects have tackled with node rewards in order to make them fair, well incentivized but sustainable for everyone involved. Aelf has come up with a reward structure based on multiple variables with a basic income guaranteed for every node. Variables may include the number of re-elections, number of votes received, or other elements.
As the system matures, the number of active nodes will be increased, resulting in a more diverse and secure network.
Staking as a solution is a win-win-win for network creators, users and investors. It is a much more resource efficient and scalable protocol to secure blockchain networks while reducing the entry point for users to earn from the system.
|Year||Total Crypto Market Cap|
|Jan 1, 2015:||$5.5 billion|
|Jan 1, 2017:||$18 billion|
|Crypto Analysis Checklist|
|What is the problem or transactional inefficiency the coin is trying to solve?|
|What is the Dev Team like? What is their track record? How are they funded, organized?|
|How big is the market they're targeting?|
|Who is their competition and what does it do better?|
|What is the roadmap they created and how well have they kept to it?|
|What current product exists?|
|How does the token/coin actually derive value for the holder? Is there a staking mechanism or is it transactional?|
|Is there any new tech, and is it informational or governance based?|
|Can it be easily copied?|
|What are the weaknesses or problems with this crypto?|
|Benefits of Cryptocurrency|
|Decentralization - no need for a third party to agree or validate transactions.|
|Transparency and trust - As blockchain are shared, everyone can see what transactions occur. Useful for something like an online casino.|
|Immutability - It is extremely difficult to change a transaction once its been put onto a blockchain|
|Distributed availability - The system is spread on thousands of nodes on a P2P network, so its difficult to take the system down.|
|Security - cryptographically secured transactions provide integrity|
|Simplification and consolidation - a blockchain can serve as a shared ledger in industries where multiple entities previously kept their own data sources|
|Quicker Settlement - In the financial industry when we're dealing with post-trade settlement, a blockchain can drastically increase the speed of verification|
|Cost - in some cases avoiding a third party verification would drastically reduce costs.|
|Market Cap||$152 Billion||$93 Billion||$7.3 Billion|
|Daily Transactions (last 24hrs)||249,851||1,051,427||70,397|
|Active Addresses (Peak 1Yr)||1,132,000||1,035,000||514,000|
|Metcalfe Ratio (Transactions Based)||2.43||0.08||1.47|
|Metcalfe Ratio (Address Based)||0.12||0.09||0.03|
|Bank Transfer||Credit / Debit card||Cash|
|Gyft||Gift cards for hundreds of retailers including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.|
|Steam, HumbleBundle, Games Planet, itch.io, g2g and kinguin||For when you need to get your game on|
|Microsoft||Xbox games, phone apps and software|
|Spendabit, The Bitcoin Shop, Overstock, DuoSearch, The Bitcoin Directory and BazaarBay||Retail shopping with millions of results|
|ShakePay||Generate one time use Visa cards in seconds|
|NewEgg and Dell||For all your electronics needs|
|Cashila, Bitwa.la, Coinbills, Piixpay, Bitbill.eu, Bylls, Coins.ph, Bitrefill, Pey.de, LivingRoomofSatoshi, Hyphen.to, Coinsfer, GetPaidinBitcoin, Coins.co.th, More #1, #2||Bill payment|
|Foodler, Menufy, Takeaway, Thuisbezorgd NL, Pizza For Coins||Takeout delivered to your door!|
|Expedia, Cheapair, Lot, Destinia, BTCTrip, Abitsky, SkyTours, Fluege the Travel category on Gyft and 9flats||For when you need to get away|
|BoltVM, BitHost||VPS service|
|Cryptostorm, Mullvad, and PIA||VPN services|
|Namecheap, Porkbun||For new domain name registration|
|Stampnik and GetUSPS||Discounted USPS Priority, Express, First-Class mail postage|
|Reddit Gold||Premium membership which can be gifted to others|
|WorkingForBitcoins, Bitwage, XBTfreelancer, Cryptogrind, Bitlancerr, Coinality, Bitgigs, /Jobs4Bitcoins, Rein Project||Freelancing|
|OpenBazaar, Purse.io, Bitify, /Bitmarket, 21 Market||Marketplaces|
|Watchmybit, Streamium.io, OTika.tv, XOtika.tv NSFW, /GirlsGoneBitcoin NSFW||Video Streaming|
|Bitasker, BitforTip, WillPayCoin||Tasks|
|Supload.com, SatoshiBox, JoyStream, File Army||File/Image Sharing|
|CoinAd, A-ads, Coinzilla.io||Advertising|
|Lightning Network, Amiko Pay, and Strawpay||Payment channels for network scaling|
|Blockstream and Drivechain||Sidechains|
|21, Inc.||Open source library for the machine payable web|
|ShapeShift.io||Trade between bitcoins and altcoins easily|
|Open Transactions, Counterparty, Omni, Open Assets, Symbiont and Chain||Financial asset platforms|
|Hivemind and Augur||Prediction markets|
|Mediachain||Decentralized media library|
|Tierion and Factom||Records & Titles on the blockchain|
|BitMarkets, DropZone, Beaver and Open Bazaar||Decentralized markets|
|Samourai and Dark Wallet - abandoned||Privacy-enhancing wallets|
|JoinMarket||CoinJoin implementation (Increase privacy and/or Earn interest on bitcoin holdings)|
|Coinffeine and Bitsquare||Decentralized bitcoin exchanges|
|Keybase and Bitrated||Identity & Reputation management|
|Bitmesh and Telehash||Mesh networking|
|JoyStream||BitTorrent client with paid seeding|
|MORPHiS||Decentralized, encrypted internet|
|Storj and Sia||Decentralized file storage|
|Streamium and Faradam||Pay in real time for on-demand services|
|Abra||Global P2P money transmitter network|
|bitSIM||PIN secure hardware token between SIM & Phone|
|Identifi||Decentralized address book w/ ratings system|
|Coinometrics||Institutional-level Bitcoin Data & Research|
|Blocktrail and BitGo||Multisig bitcoin API|
|Insight||Open source blockchain API|
|Leet||Kill your friends and take their money ;)|
|millibitcoin||mBTC||1,000 per bitcoin||SI unit for milli i.e. millilitre (mL) or millimetre (mm)|
|microbitcoin||μBTC||1,000,000 per bitcoin||SI unit for micro i.e microlitre (μL) or micrometre (μm)|
|bit||bit||1,000,000 per bitcoin||Colloquial "slang" term for microbitcoin|
|satoshi||sat||100,000,000 per bitcoin||Smallest unit in bitcoin, named after the inventor|
How to Setup Watch Bitcoin Address. Watch Bitcoin address is a way for you to check your cold storage balance online without exposing your private key. Create an wallet account at https://blockchain.info/wallet/ Go to import/export. At "Add Watch Only Bitcoin Address", add your bitcoin address. Wait for the balance to synch. ICOs Initial coin offerings – also called token sale s or crowdsales – are an unergulated, fast, high-risk, and commonly Ethereum-based crowdfunding mechanism for early-stage digital asset ventures. In ICOs, funds are raised by offering investors cryptocurrency tokens which act as a kind of voucher that may be traded for some resource or special feature of the venture in the future (e.g By avoiding banks and payment processors, Bitcoin developed a decentralized, worldwide market that requires only an Internet connection and an investment of fiat currency (national currency) if you want to participate. To get started, acquire some Bitcoin from an online exchange. Then set up a digital wallet to store your Bitcoin. Bitcoin Basics . Bitcoin was launched in January of 2009. It introduced a novel idea set out in a white paper by the mysterious Satoshi Nakamoto—bitcoin offers the promise of an online currency Individuals, businesses, developers: learn from our simple Bitcoin guides. How Bitcoin works, what is Bitcoin, what is blockchain, how to buy Bitcoin, what is Bitcoin mining and more. Whoever you are, Bitcoin is for you. Individuals, businesses, and developers: get the support you need with our simple guides. Watch 3 min. Bitcoin 101.
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