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Bitcoin Cash (BCH) Temporarily Overtakes BSV After Gemini Listing

Gemini Adds Bitcoin Cash Support

Starting today, users of the U.S.-regulated, Winklevoss Twins-headed Gemini platform will be able to deposit Bitcoin Cash (BCH), the chain backed by the ABC client. This development comes via an official statement from the New York-based company, issued through Medium on Thursday morning.

Per the announcement, trading for BCH will commence on Monday, December 10th, while custodial services for the popular altcoin have already started. BCH is now the fifth crypto asset listed on Gemini, now an exchange even more exclusive than Coinbase when it comes to listings. BCH joins Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and ZCash (ZEC), the latter of which was recently added to Coinbase in a surprising turn of events.

BCH trading on Gemini was first announced in May, after the startup received approval from the New York Department of Financial Services (NYDFS), but the Winklevoss Twins were mandated to delay the asset’s launch due to the fork.

Closing off its announcement on the matter, Gemini maintained that the addition of BCH is in-line with the startup’s underlying mission. It was explained by Eric Winer, the platform’s Vice President of Engineering:

“We are excited to add this cryptocurrency to the Gemini platform — the world’s most regulated cryptocurrency exchange and custodian. We are proud to provide our customers with a safe, secure, and compliant method to buy, sell, and store cryptocurrency as we build the future of money.”

Abra Reactivates BCH Trading

Just days prior to Gemini’s surprising announcement, American crypto platform Abra, often touted as a Coinbase and Circle competitor, also made a BCH-related announcement, but in a different context.

Through an official company blog post, the Mountain View-based startup first noted that prior to the November 14th hard fork, it suspended its in-house BCH-centric services. But starting last Monday, deposit, withdrawal, and trading support for the controversial asset resumed. The fintech company then issued a comment on why it chose to back ABC, the client of choice of Roger Ver,, and Bitmain, as such a decision was likely deemed disputable.

Abra, headed by crypto advocate Bill Barhydt, noted that it is “becoming clear” that ABC is the dominant chain, presumably due to the block lead and higher PoW statistics the fork had at press time. Yet, the popular crypto-centric platform added that it may “consider supporting” BSV, ABC’s primary competitor chain, in the future, dependent on how two chains play off each other moving into the future.

BCH Overtakes BSV After Multi-Week Brawl

For those who aren’t in the loop, amid this week’s market tumult, BSV, backed by the notorious Craig “Faketoshi” Wright and Calvin Ayre, saw a monumental rally this week, moving up the crypto standings faster than many could utter “HODL.”

In a matter of days, if not hours, BSV began to approach the market capitalization of BCH, with many crypto-centric commentators taking to Twitter to express their disbelief, as many thought the civil war between the two factions ended.

As BTC tanked, falling under $3,500, BCH followed close behind the world’s first cryptocurrency. Although many expected for BSV to follow suit, it didn’t, with the forked asset immediately surging, passing the market capitalization of BCH.

However, with Gemini’s stamp of approval, BCH has started to outperform BSV for the first time in days, recently surpassing its competitor in terms of market capitalization.

The post Bitcoin Cash (BCH) Temporarily Overtakes BSV After Gemini Listing appeared first on Ethereum World News.

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Cardano (ADA), Tron (TRX) and BAT Listed on the Abra App

From the 4th of September, users of the Abra app have been able to access three new cryptocurrencies on the mobile app. These cryptocurrencies are Cardano (ADA), Tron (TRX) and Basic Attention Token (BAT). The team at Abra acknowledged the main reason for listing the new digital assets, was the constant requests from the app’s users to add them. The announcement went on to add that:

We’ve been getting a lot of user requests to add various coins and tokens to the Abra app, and we are working diligently to make that happen.

We are really excited to have these coins listed on Abra, and we are working to bring more investment options to Abra users.

28 Cryptocurrencies

The mobile app now supports 28 cryptocurrencies as can be seen in the screenshot below.

28 cryptocurrencies on Abra. Source,

The Abra wallet allows you to gain exposure to all these crytocurrencies without creating a separate wallet, managing separate keys, or figuring out how to buy these digital assets on a regular crypto exchange. You can also redeem your cryptocurrencies for Bitcoin (BTC) or USD for withdrawal to your bank account.

Global and Flexible

For the aforementioned withdrawals, Abra allows users in the US and the Philippines to withdraw to their bank account. In the case of the latter country, residents in the Philippines can also deposit and withdraw funds to their wallet using a regular teller. This service is currently only available in the Philippines.

Listing Cardano (ADA) and Basic Attention Token (BAT) Before Coinbase

Popular American crypto exchange of Coinbase had earlier announced that it had plans to list the five digital assets of Cardano (ADA), Basic Attention Token (BAT), Ox (ZRX), ZCash (ZEC) and Stellar (XLM). The team at Abra have managed to beat Coinbase at listing 2 of the 5 digital assets.

Furthermore, it has been over 3 weeks since Coinbase made the announcement about exploring the possibilities of listing the 5 cryptocurrencies, therefore a verdict from the exchange should not be that far away in time.

[Photo courtesy of]

The post Cardano (ADA), Tron (TRX) and BAT Listed on the Abra App appeared first on Ethereum World News.

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Abra CEO: SEC Denies Bitcoin ETFs Because Applicants Do Not Fit Industry Archetype

The reason the U.S. Security and Exchange Commission (SEC) has insofar denied crypto exchange traded funds (ETFs) is because the crypto industry does not fit the applicant archetype, according to the CEO of crypto payment startup Abra, CNBC reported September 4.

Speaking in an interview with CNBC’s “The Coin Rush,” Bill Barhydt suggested that the SEC has rejected crypto ETF applications because “people who are doing the applications don’t fit mold of who the SEC is used to approving.”

Barhydt said that in order to receive approval for an ETF, there should be an applicant who “looks, feels and smells” the way the SEC expects them to. He further noted that a trusted financial organization has better chances to get approval than a startup or a relatively unknown company. Barhydt predicted that the SEC will finally approve a Bitcoin (BTC) ETF next year:

“It’s going to happen in the next year, I would actually make a bet on it. There is too much demand for it.”

Barhydt’s statements follow some widely publicized rejections of Bitcoin ETF applications. In July, the SEC denied an appeal for the application of a Bitcoin exchange-traded fund by brothers Tyler and Cameron Winklevoss. On August 7, the regulator postponed its decision on the listing and trading of a BTC ETF from investment firm VanEck and financial services company SolidX until September 30.

Last month, Pantera Capital CEO Dan Morehead suggested that a BTC ETF would take “quite a long time,” saying that crypto adoption was still in its early stages. Morehead noted that the most recent asset that gained approval from the SEC for ETF certification was copper, a metal that “has been on earth for 10,000 years.”

Bitcoin is trading at $7,377 at press time, up more than 1 percent on the day, according to Cointelegraph’s Bitcoin Price Index.

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Crypto Wallet Abra Announces Direct Transactions From EU Banks in SEPA

Global crypto wallet Abra has enabled the direct purchase and sale of cryptocurrencies for European bank accounts, according to a press-release published by PR Newswire Tuesday, September 4.

Abra, which offers 28 cryptocurrencies for consumers worldwide, will now support Single Euro Payments Area (SEPA) bank accounts. As the company’s official Twitter states, the launch of in-app European bank purchases of digital currency has already started.

Customers can now transfer euros or several other national currencies directly to their wallet which can, in turn, can be converted into the 28 cryptocurrencies offered by Abra including Ethereum (ETH), Litecoin (LTC), and Ripple (XRP).

Bill Barhydt, founder and CEO of Abra, further explained the innovation:

“With users from over 70 countries globally, and a greater demand for the ability to invest in cryptocurrencies from any bank account, it is really important to give investors the opportunity to fund their Abra wallet directly from any bank account.”

Along with backing SEPA bank accounts, Abra has announced three new coins recently added to the wallet: Cardano (ADA), Basic Attention Token (BAT), and Tron (TRX).

Until today’s announcement, the Abra wallet could only be funded by U.S. bank and wire transfers in the United States, along with American Express, Visa, and MasterCard debit and credit cards around the world.

The Single Euro Payments Area (SEPA) is a payment system that simplifies bank transfers in the EU. Currently, it includes 28 EU members, together with the four member states of the European Free Trade Association (Iceland, Liechtenstein, Norway, and Switzerland), and Andorra, Monaco, and San Marino.

As Cointelegraph reported back in March 2018, major U.S. crypto wallet and exchange Coinbase received an e-money license from the UK Financial Conduct Authority (FCA) to conduct its fiat activities in Great Britain, as well as in the 23 countries within the European Union. It was not immediately clear if Coinbase could keep the EU license in the future due to Brexit.

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Crypto Wallet Abra Opens Door to More European Users

Crypto wallet and exchange startup Abra is opening up a new channel for deposits: European bank accounts.

Residents in the Single Euro Payments Area (SEPA), as well as additional nations in the European Union, can now transfer euros or other national currencies directly to Abra, which in turn deposits bitcoin into users’ digital wallets.

Customers can then convert their BTC into one of a number of other cryptocurrencies currently available through the app, the list of which, as of today, now includes ADA, BAT and TRX on top of the 25 coins already listed.

SEPA standards allow for residents in any country in the European Union, along with Iceland, Norway, Switzerland, Lichtenstein, Monaco and San Marino, to make cross-border payments through direct debit transactions, among other features.

The company is working with crypto payments processor Coinify to add support for European banks, CEO Bill Barhydt told CoinDesk.

He explained:

“Abra works with regulated exchange partners in different territories who take our customer’s personal identifying information and process deposits, withdrawals and bitcoin purchases. Abra is working with Coinify as our first partner in Europe to enable European bank integration via SEPA … Users in Europe now have the option of doing a SEPA bank transfer from their European bank account directly to Abra’s exchange partner which will cause the equivalent amount of bitcoin to be added directly to the user’s Abra wallet.”

Prior to this move, customers could fund their wallets using bank or wire transfers within the U.S., or purchase cryptocurrencies with American Express, Visa and Mastercard debit or credit cards.

On top of giving access to SEPA account-holders, Abra is adding support for bitcoin cash deposits, according to Barhdt. Previously, customers could fund their wallets using bitcoin or litecoin.

Bitcoin and euros image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Ripple’s XRP and Tech best Choice for Amazon to Go

The Crypto – Market – Ripple’s XRP

Despite many believing that the same 2017-gold rush will return very speedy this year, it seems like we have to wait a bit longer. In these times of violent sell-offs, it is of positive nature to return to the words of Bill Barhydt – CEO of Abra, who said:

“I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity. Once that happens, all hell will break loose. He added: “Once the floodgates are opened, they’re opened.”

Parallel to that, just yesterday the CEO of IOHK and Cardano co-founder Charles Hoskinson on an announcement video regarding his platform added that this unsettling market volatility happened even before and we were there so everything is fine.

Keeping the above in mind, it is a good moment to look out for the best choice in the market. The prices have dipped majorly and there is a high chance it will be very rare they are this low again. So, whichever your choice is, this time around is a golden windows opportunity to step in.

Ripple’s Tech Able to Support Giants

Ripple’s XRP has established itself as one of the primary cryptocurrencies to shape the future of digital commerce. As the existing financial infrastructure does need a good rework, one of best to go [many cooperation, financial entities and firms have returned with positive test results] could be turning Ripple‘s XRP, xCurrent and xRapid.

For a company like Amazon, the best yet to do after witnessing many commencing digital currency support is to go for the one that is most user friendly.

Ripple’s high coin supply and subsequent lower price-per-coin will come in handy for creating a user-friendly market. Cryptocurrency will never find a place on Amazon’s market if it can’t prove to be beneficial to the customer experience. Price volatility and slow transaction times are antithetical to this mantra. But Ripple offers an alternative.

Let us say that the coin is implemented and it is targeting users. What would be simpler for the online store user to handle with .0001 BTC or lets say 1 XRP. For a trader or someone that works in the finance it is the same as the pricing has no difference. However, for a consumer it is much easier to go with 5 XRP instead of 50,000 satoshis.


Speculation of an Amazon partnership were first seen in the Crypto-verse late last year. The idea behind the speculation hinged on the reliability of XRP during transactions. The coin is known for 3.3 second transaction speeds and $0.0004 charges per transactions. These are performances that a leading online retailer like Amazon needs for the process of moving into the future and improving the online payment settlement.

The event would not be that shocking because we have to keep in mind that Ripple’s tech is being tested and promoted by various firms, baking institutions or financial companies like MasterCard American Express, Santander.

XRP Best of Exchanges

The Binance cryptocurrency exchange is one of the most active ones in the crypto-verse. There have been many and popular tweets circulating the crypto-verse by enthusiasts that XRP should be a base coin for Binance. Some of the reasons XRP fans outlined in the comments of the tweet as to why Binance should start pairing the digital asset as a base for trading are as follows:

  • It would help Binance for it is faster and cheaper
  • A base currency of XRP would bring in more users to the exchange
  • XRP is the fastest digital asset to transfer funds between exchanges

Accordingly, Weiss Ratings has also agreed and supported the request to add XRP as a base currency on the exchange.


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Stablecoins Will Do More Than Just Reduce Crypto Price Volatility

Bill Barhydt is the founder and CEO of Abra, a global crypto wallet and exchange network.

There are plenty of misconceptions surrounding stablecoins. One of the main things that I hear frequently is that they will somehow bring the volatility of current crypto markets to heel.

Maybe this is implied by the name, or maybe it’s just a misunderstanding of crypto market dynamics when compared to other more traditional financial markets, but stablecoins by themselves won’t smooth the turbulent fiat value of crypto assets. Only a massive amount of liquidity in the crypto space and a significant amount of time will do that.

Instead, stablecoins will have a role to play in broadening cryptocurrency markets. In my mind, the most promising and often overlooked application for stablecoins is their utility as on-ramps for assets moving from traditional financial markets into crypto.

I like to use the analogy that if cryptocurrencies are like the Matrix – a digitally-native technology that is completely apart from the physical world – then stablecoins can be like the hard line between these two worlds. In this case, the hard line would exist between the new world of computer-code-based value, e.g. bitcoin, and the traditional value system based on physical assets, e.g. fiat or the U.S. dollar.

Right now, it’s hard to get the two worlds to interoperate – there’s a lot of needless friction that comes at the costs of time and money. Relying on legacy tools to enter cryptocurrency systems still limits access for billions of unbanked or underbanked people across the globe.

Stablecoins allow people to take advantage of traditional financial tools like access to loans and credit, but also take advantage of things that cryptocurrencies do well, such as sending money quickly and cheaply, creating economies around smart contracts, and powering a slew of decentralized financial applications.

So instead of thinking of stablecoins as some kind of giant ballast that will keep the crypto ship steady, think of them instead as a port – a place for people to load and unload assets.

Emerging models

So far, there are three models emerging as potential methods of creating and managing stablecoins:

  • Fiat-collateraliteralized stablecoins: These are crypto assets that are held usually in a one-to-one relationship with fiat currency. Tether, the popular and controversial fiat-backed stable coin, is backed by U.S. dollars, for example. So in theory, each tether is a digital representation of a dollar. The peg keeps the price of tether stable, but it comes at a cost – the Tether network must stay centralized to work, and it’s got to have a lot of dollars in the bank (at least enough to cover the circulating supply of tether). This creates a scaling issue and a network that requires additional steps like outside audits to make sure the fiat supply is aligned with the tether supply. One big advantage of this style of system, however, is that it’s easy to understand because traditional currency markets have also functioned in this floating currency style.
  • Crypto-collateralized stablecoins: Instead of a fiat peg, these coins are backed by a pool of crypto. Put simply, users stake a certain amount of crypto and then borrow stablecoins against that collateral at a fixed rate. How this process actually unfolds in the background can vary from system to system. The coin known as dai, which is controlled by the decentralized organization Maker, is one example. Another is the recently announced project called Reserve. At Abra, we use a bitcoin- (and litecoin-) based model to collateralize 23 cryptocurrencies and 50 fiat currencies. The challenge with crypto-backed stablecoins is that they can still be vulnerable to the major market shifts of crypto more broadly. Abra manages this risk through an innovative hedging mechanism that virtually eliminates our market exposure to these market shifts. The promise that crypto-collateralized stablecoins hold is that they rely on the same distributed and decentralized architecture that makes cryptocurrencies so novel and resilient.
  • Algorithmically controlled stablecoins: This is a newer model of stablecoin that constantly adjusts its supply, based on demand, to maintain a constant price. The project Basis is one example. The strength of this method is that it is not trying to be a new version of the fiat reserve system. In fact, there is no collateral at all, which would imply that this model could be scaled. But since there is no collateral, then ultimately the system is built on trust. In the case of Basis, trust is placed in algorithmically controlled software on the network. Time will tell if that trust can be earned or not.

At a higher level, stablecoins are enabling decentralization by acting as the bridge between traditional banking and completely decentralized exchanges as well as non-custodial wallets.

What’s next

I also predict that we will see next generation stablecoins that function more like stable assets.

For example, a bitcoin-based share of Apple could allow a consumer to hold Apple stock without the consumer or the broker ever taking possession of an actual Apple share. The amount of bitcoin being held would simply adjust automatically via smart contract to maintain parity with its underlying value versus Apple shares. This opens up the world of decentralized investing via crypto to other non-crypto asset classes. That is a big problem that crypto solves.

Ultimately, I think that stablecoins will play an important role in bridging traditional financial markets with the emerging, programmable financial tools enabled by cryptocurrencies.

Reducing the friction between the crypto and fiat financial systems will help increase access to new kinds of assets and opportunities, which is critical for projects and companies currently building in the crypto space. Stablecoins and stable-assets also represent a tremendous opportunity for people so far left out of crypto to find a viable use case and entry point.

House of cards image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin Purchase with Credit/Debit Cards on Abra

Abra, the multicoin cryptocurrency wallet platform has launched a new feature that allows users to purchase Bitcoin using their credit/debit cards. The company announced the move in a blog post on Thursday (July 12, 2018). Abra CEO, Bill Barhydt believes that BTC can reach $50,000.

Seamless Bitcoin Purchase

With the newly launched feature, Abra users now have an additional method of buying BTC. Abra inked a partnership deal with Simplex to provide the service. Before the launch, only users in the United States could use their credit/debit cards to purchase Bitcoin on the platform, via American Express.

By introducing this new feature, the platform aims to simplify the BTC purchase process, ensuring a seamless user experience. According to the company using a VISA or MasterCard to buy Bitcoin offers numerous advantages over other purchase options. The benefits range from faster processing time to enhanced availability.

BTC purchase on Abra via credit/debit card has a minimum and maximum limit of $50 and $20,000 respectively. The coins purchased can be kept on the platform or transferred to another wallet service.

The credit/debit card purchase feature is available to Abra users in more than 75 countries around the world. The coins purchased can be available in less than half an hour depending on the blockchain traffic at the time.

Abra CEO Predicts Bitcoin Price to Reach $50,000

In a related development, Bill Barhydt recently predicted that Bitcoin would one day reach the $50,000 milestone. Barhydt, however, didn’t provide any timeline for when BTC would achieve this high. The Abra chief also downplayed the bull rally of late 2017 saying that crypto enthusiasts “got way ahead of themselves.”

Barhydt didn’t provide any analysis to back his prediction. Macroeconomist, Peter Tchir believes that most BTC price predictions are made with specific motives in mind on behalf of the analyst. Writing recently for Forbes, Tchir encouraged traders to disregard predictions that didn’t have any empirical analysis to back the proclamation.

Presently, Bitcoin is in the midst of a sustained bear dip that has seen prices plummet by more than 60 percent since the start of 2018. BTC permabulls will be hoping for another price surge that can catapult the top-ranked crypto to a new all-time high.

What do you think about the credit/debit card BTC purchase feature on the Abra platform? What are your thoughts concerning the Abra CEO’s BTC prediction of $50,000? Keep the conversation going in the comment section below.


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'Layer 2' Blockchain Tech Is an Even Bigger Deal Than You Think

Michael J. Casey is chairman of CoinDesk’s advisory board and a senior advisor of blockchain research at MIT’s Digital Currency Initiative.

The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday exclusively to our subscribers.

Welcome to the “Layer 2” era.

We are now entering an exciting new phase of blockchain development in which the lightning network and other programming solutions that operate “on top” of existing blockchains promise big strides in scalability, interoperability and functionality.

There is still much work to be done. The early tech is buggy, and new security and trust solutions must be figured out when much of the computing activity in individual transactions or smart contracts is taken “off chain.”

But in mitigating the heavy, multi-party computation that blockchains carry while ensuring that transaction histories are at some point anchored by “on-chain” consensus algorithms, there’s something of a best-of-both-worlds promise in these ideas.

As Neha Narula, director of the MIT Media Lab’s Digital Currency Initiative (where I work) describes it, the defining feature of Layer 2 is that “computation is moved off-chain, either to enable privacy or to save computing resources.”

Rather than having the script of a particular program executed by every computer in the blockchain network, it “is implemented simply by the two or more computers involved in the transaction.”

And yet, she said, “you get similar security protections as with on-chain transactions because the blockchain acts as the anchor of trust.”

Where this all goes is anyone’s guess. That’s what makes open-source, extensible platforms exciting: they provide the building blocks upon which unimaginable new applications can be developed.

We’re not entirely driving blind, however. The development of the World Wide Web in the 1990s offers a useful source of contrast and comparison, when a similar, second layer solution transformed the Internet from being a clunky network of mostly academic users into a ubiquitous global phenomenon.

Similarly to then, I believe, we can expect an avalanche of innovation and development.

Laying foundations

Stepping back, the 1989 implementation of Tim Berners-Lee’s Hypertext Transfer Protocol (HTTP) on top of the base-layer Transmission Control and Internet protocols (TCP/IP) paved the way for Marc Andreessen’s Mosaic Netscape browser in 1994.

That then gave rise to a host of web-based applications, which ultimately fostered all the online services that now form part of everyday life.

In some respects, the sequencing will be different for the blockchain industry. We may already have had our version of the late-nineties bubble, for example, with last year’s ICO mania coming before the enabling Layer 2 technologies were in place.

Still, a good amount of the billions raised in those token offerings will likely find its way into Layer 2 development, hopefully accelerating their march toward wider adoption.

Also, whereas HTTP was universally adopted as an almost immediate standard, there’s a great deal of competition in Layer 2 blockchain solutions.

Lightning’s payment channels were originally designed for bitcoin transactions, but it supports interoperability and has certain smart contract capability.

That could put it up against alternative “state channel” Layer 2 solutions for ethereum (Plasma, Raiden) as well as with projects aiming to enable cross-chain transactions (Polkadot, Cosmos, Interledger).

And, as seen at the L2 Summit hosted recently by MIT DCI and Fidelity Labs, there are many other lightweight off-chain ways to expand transactional capacity.

For example, developers at the startup Abra and elsewhere are using established, decentralized blockchains such as bitcoin and ethereum to settle futures contracts that are denominated in different currencies or tokens.

In bloom

Already more than 2,000 nodes are on the Lightning Network, managing more than 7,000 channels. It’s a long way from being a ubiquitous global network, but that growing community provides a great foundation for experimentation.

Now that a unique form of privacy-protecting smart contracts has been developed by Tadge Dryja, a co-author of the original Lightning white paper and now also at the DCI, there’s an even greater potential for development.

Layer 2 projects developed around ethereum are also generating interest. At the Event Horizon conference on blockchain energy in Berlin last month, much buzz was generated by presentations on the capacity of Polkadot and Slock.It’s Incubed client to enable off-chain, device-to-device transactions.

Meanwhile, with Ripple joining the Hyperledger consortium, corporate engineers will have opportunities to develop enterprise uses for the startup’s Interledger protocol.

In this environment, we will see a competitive dance pit the interests of established corporates against Layer 2 startups such as Lightning Labs, Blockstream, Ripple and Parity, as well as potentially hundreds of independent coders around the world.

Ultimately, standards will arise, creating winners, with consortia like the World Wide Web Consortium, better known as W3C, emerging to shepherd that process.

And what of the economic fallout from all this? If the nineties are a lesson, we can expect that, eventually, many legacy industries could be disrupted.

New frontier

Lightning’s payment channels point to the kind of low-fee, fast-paced payments that bitcoin early on promised but failed to deliver. That would, in theory, take business away from banks, credit card companies and money transmitters.

Still, there’s no guarantee regular Joes will get over their apprehension toward cryptocurrencies – not without as-yet-unavailable solutions for price volatility, for example.

There are also questions about how regulators will deal with a system that could make transactions very hard for them to track. Finally, it’s still not clear that these off-chain solutions will achieve the kind of scale necessary without the emergence of powerful corporate interests.

Will such participants impose unwieldy costs on the system or simply provide much-needed liquidity? It’s too early to say.

Another question is who will be the winners and losers in the crypto community. Might Layer 2 solutions deny miners the fees they need to continue securing the underlying blockchain? That was the topic of a recent Twitter exchange between Ryan Selkis and Jameson Lopp.

Here, the lessons from Wall Street in the late 1990s might also be instructive. Some investment banks worried about the hit to revenue as web-based e-trading slashed brokerage fees. In reality, online technology expanded the pie for stock market trading, benefiting incumbent players even as their per-trade margins shrank. It was an example of what’s known as the Jevons Paradox.

History doesn’t always repeat, of course. Miners may indeed be hurt by activity going off chain. But it shouldn’t be our job to worry about them per se.

The goal here, as clearly defined in the Segwit debate that ultimately resulted in lightning’s implementation on the bitcoin main-net, is for optimal decentralization and maximum security.

True innovation, by definition, is disruptive. So buckle up.

Wood layers image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.