Advances that are being made in the legal field are like pieces of a mosaic — while they are not particularly spectacular by themselves, together they form the complete picture. Ongoing legal matters are additionally an unappreciative topic to write about — they can typically be made public long after they have been resolved and even then, more often than not, parts have to be omitted. Nevertheless, a lot of ICONOMI legal advances have been made public through questions raised by the community. For an easier overview, we have consolidated them into one post.
Under what framework are your funds and ICONOMI regulated?
Grouping ICONOMI activity under established terms devalues the scope of how revolutionary ICONOMI’s activities actually are and creates unnecessary concerns around whether or not a part of legislation is directly applicable to us. What ICONOMI is creating is unique to the extent that it does not fit within traditional regulatory frameworks — it is a completely new asset class.
We are nevertheless devoted to respecting the rule of law and are making every decision in good faith. For example, we will be implementing all best AML and KYC practices we developed while operating Cashila, which include respecting EU KYC/AML legislation and adding our own mechanisms on top; we are proactively monitoring global regulatory developments and researching numerous jurisdictions; we are speaking with financial regulatory bodies in several jurisdictions; we are monitoring EU, USA and other legislation and mutatis mutandis implementing relevant institutes, preparing ICONOMI for when regulators intervene in the crypto world.
ICONOMI has already launched two ICONOMI Digital Assets Arrays, the ICONOMI.performance and the ICONOMI.index, and will soon launch the Digital Assets Management Platform. The way ICONOMI products function is inherently different from any instrument, financial or otherwise, known today. In order to make our vision easier to understand, we have decided to draw parallels between the old and the new worlds. While these comparisons have served as a teaching aid, ICONOMI is staying firmly in the new world.
As the service operator, Cashila carries no legal liability over the assets, trades, dividends or anything else on the platform. Is that correct?
You are correct. The service operator carries no legal liability over the assets, trades, dividends or anything else on the platform.
However, there are two important notes to be made here. First, “Cashila” is not the service operator of ICONOMI — ICONOMI Inc. is. Second, ICONOMI Inc. as the first service operator is implementing rigorous security protocols for developing a very robust system in order to provide an impeccable technical solution. Furthermore, in addition to the technical solutions, security protocols are being developed on a more conceptual level. For example: how the keys for the cold storage multi-sig are handled, how accesses are strictly generated and monitored,….
Once you start paying dividends, it will need to be clearer to shareholders what the legal boundaries are within which you operate, at least from the USA and EU regulatory points of view.
This established term was used to make the properties of the new asset class that is being established by ICONOMI easier to understand to a broader audience. For a more detailed description, please refer to the first part of this post.
What is/will be ICONOMI’s legal definition? From Legal — part 1: “ICONOMI will seek its own juridical personality…” Can you comment on any legal entity that you are using?
The service operator of ICONOMI is ICONOMI Inc.
Are ICONOMI services available to US citizens?
Due to the uncertain legal system, ICONOMI services are not available to citizens of USA at the moment. As soon as a clear decision is made, these restrictions will be removed.
How will you create transparency to show that you treat all investors at arms-length?
Once the array vectors are set, everything is done automatically according to the code. The code is the law in the case of ICONOMI. Operations are executed automatically in real time, with clear priorities set by the code and, most importantly, without human intervention. This is the best guarantee that all investors will be treated at “arms-length”.
How will you demonstrate that you respect the principle of “best execution”, where a fund provider must credibly demonstrate that the transaction was executed to the best conditions available in the market at any given time?
Generally speaking, lots of issues from the traditional world are solved by the nature of digital assets and the way they are traded.
Best execution can be translated into transparency in terms of decision-making, what is defined by the algorithms, while in this world everything is recorded and is traceable through APIs.
Will there be anti-fraud security measures in place or is this trust dependent on who your open fund manager is ?
Yes, several anti-fraud measures will be enforced. For example, the most obvious one will be the prevention of frontrunning. It will be a continuous learning process. We will begin with a small control group and gradually expand in accordance with the feedback received. Security measures will be the same for all the assets on ICONOMI.
This notice is for all validator operators, and may be useful for gateways that intend to use tick sizes.
A majority of trusted validators voted to enable the TickSize amendment,
which is scheduled to become active on the protocol on Tuesday,
2017-02-21. The amendment changes the way RCL offers are ranked in order
books, so that currency issuers can configure how many significant
digits are taken into account when ranking offers by exchange rate.
For a detailed look into the TickSize feature, see the original TickSize announcement.
If you operate a rippled server and accept secure client connections, then you should upgrade to rippled version 0.50.2 immediately. If you operate a rippled
server but do not accept secure client connections, then you should
upgrade to version 0.50.0 by Tuesday, 2017-02-21, for service
If you are a gateway issuer, then please review documentation for the TickSize amendment to determine what tick size is appropriate for your issuing asset.
If you are a market maker and have algorithmic trading bots, then please review documentation for the TickSize amendment to update your trading system to check the tick size for a given issuer.
If you have backend software, which constructs and submits transactions related to the issuing of assets on the Ripple network, then please review documentation for the TickSize amendment to adapt it for correct usage.
For more information, see the following articles in the Ripple Developer Portal:
ASSUR — Guarantee Of Your Transaction Reliability. 92 E-Dinar Coin Users Have Received Payments As it is known, the company «ASSUR», which has a perpetual license for insurance activity of financial risks, since October 18, 2016, secures E-Dinar Coin deposits not only from cyber-attacks but also from the exchange rate changes and even from the risks related to the capability of cryptocurrency exchange. We would like to inform our members and partners, the insurance company «ASSUR» has made payments to 92 users due to the E-Dinar Coin exchange rate fluctuations. Total payments amounted to $ 230,000. A significant increase in the popularity of cryptocurrency – decentralized digital means of payment – is causing suspicion and negative reaction of fiat money representatives in many countries, as they do not want to lose their position in the currency market. In terms of openness and variability of modern financial markets, it is difficult to fully protect your cryptocurrency capital, therefore the insurance of financial risks is becoming increasingly important, especially if you provide a full package of insurance: the risk of fluctuations in exchange rates, the risk of changes in the currency purchasing ability, the risk of cyber attacks and activities by illegal hackers. E-Dinar Coin always makes sure that each user would get a reliable exchange and security of other financial transactions with EDR cryptocurrency. Subscribe to E-Dinar Coin official
WEEKLY REPORT 20/02/2017Hi all. Another week without changes. After doing
an important rebalancing last week because of the BTC potential massive
rise in case ETF is approved in the coming weeks, the situation keeps
BTC has been some days stable in that 1050-1070 $
key zone. Big players from both sides (BTC traders & ALT traders)
are reducing their positions to reduce risks due to extreme uncertainly
About Blue Magic funds, the plan keeps the same.
It’s time to wait and see what happens in the coming weeks. In case that
ETF would be approved, or BTC would go through ATH indicating a massive
buy fundamental pressure, we would reduce our portfolios alts positions
even more, to the 40-50% in BTC. No plans to increase the BTC position
further from those levels, no matter if BTC is booming and ALTS are
In case ETF would not be approved, and BTC started
to make the price consolidation pattern, we would re-enter hard again
Whatever is the case, I expect some weeks of stabilization and lower values of Blue Magic Funds. I would be very surprised if Blue Magic Funds will go up in value remarkably in the coming weeks. There are periods of expansion and periods of contraction.My objective is to maximize the expansion periods and minimize the
contraction ones. Blue Magic Capital charts don’t lie, we’re in the good way
As we mentionedBlockshow Europe 2017,
an event organized by CoinTelegraph that will take place in Munich in
just a few weeks. It’s expected to become the most important
blockchain-related event in Europe this year.
Dave PearceNxt Foundation, who is going to represent the Foundation in this event, asked for some community members to help make this event a success:
working on a promo item for Nxt/Ardor to go into the goody bag that
each attendee will receive, but we do need a couple of banners and a
flier or brochure to give away, and I’m looking for volunteers to help
with creating either of these:
need to be approximately 2m high by 1m wide, in a standard roll-up
banner style. I’d like to have one for Nxt and one for Ardor,or maybe
one for the Foundation plus one for Ardor. They need to be eye-catching
and informative, but not too complex. Anyone want to help out by
providing a design ? I can get the printing done in NL and take them
with me to Munich, so that’s under control.
There will be a bounty for any designs that we use…
We also need a flier or brochure
to give away, just to explain in very clear English exactly wtf Nxt,
Ardor and the Nxt Foundation are all about. Again: eyecatching and
informative, please. Any text writers who’d like to have ago at this,
get in touch. A designer would also be welcome.
So now you know, if you have some time and energy to help the Nxt community, this is the right time to do your bit.
asking for more help to promote the benefits of Nxt and Ardor. As you
probably already know, a decentralized community like this doesn’t have a
stable source of income, but rather is composed of a lot of volunteers
who work tirelessly and mostly in an altruistic way not only to promote
these platforms, but also to inform current users about these
developments and other day-to-day matters.
Wolffang has said:
As most know Nxt and Ardor have a great community which
is really helpful towards others. The Tech is also one of the best
around today in crypto.
NXT and Ardor are way underrated compared to the rest of crypto projects.
Besides the great things the Nxt team is doing we can give them a help
with promoting, showing and telling people about Nxt and Ardor.
It will help your own investment too.
I Hope you will help out with sharing the tweets, discuss on subjects,
help people out, upvote reddit posts, maybe help in polo trollbox to let
traders know the good things etcetera.
The latest news is in the #swarms channel on slack.
Twitter: @NxtCommunity @ArdorPlatform
Also for community discussions: nxtforum.org
At Nxter.org, we’ll continue spreading the word as we’ve been doing
since the beginning, to try to make more people learn about both Nxt and
Ardor platforms, together with the full ecosystem around it. If you’re
interested in giving us a hand to achieve this objective, please visit https://nxter.org/get-publishe...
Roberto Capodieci – Masterclass About Blockchain Solutions
among many others, offered a masterclass about “Open Blockchain
Platform For Trade and Supply Chain”, this past week during the 2nd Annual Supply Chain Finance and its Alternatives in Singapore.
Roberto, who has a great knowledge of blockchain technology and the
solutions it can offer, didn’t hesitate to add his personal touch and
his usual sense of humour to this event, as we can see in the preview of his introductory speech that he shared with all the Nxters, before delivering it in front of his audience:
Ladies and gentlemen, welcome to this blockchain workshop.
It is gonna be a great workshop. It is gonna be absolutely fantastic.
Believe me. I know all about workshops. It is gonna be the best workshop.
Today workshop is about blockchain based platforms for trade and supply chain…
Capodieci also didn’t lose his chance to mention Nxt in this speech:
…We use Nxt for our blockchain solutions. It is huge, it
is tremendous. Very important people uses Nxt. It is so… it is terrific.
You could be one of them, because I know how to make tremendous
Blockchain. Chose OTDocs, and it is gonna be: “Blockchain First”.
Welcome to the workshop! Let’s make Blockchain great again. With OTDocs…
Tipper already has a good handful of functionalities built-in and more functionalities are regularly added in. To use this functionality, start a private conversation with the bot Tipper by typing “help” to know all the characteristics and get some help using it.
At nxter.org“Snapshot”, the first book about the Nxt platform,
and also thanks to the numerous photographs with clear evidences of
happiness for getting their book which many owners have published
publicly to show their little treasure (which they don’t hesitate to
pose with), we’ve decided to start a new section on our website called
the Hall of Fame.
Write @nxter_org in your tweet and get on our Hall of Fame
The newest addition to the Nxter Hall of Fame features the Snapshot book that has traveled (Thanks Travin KeithLongyearbyen in the Svalbard archipelago.
In the picture, we can see the happy librarian in charge of this
establishment showing us their newest acquisition. Congratulations!
valbard’s library already has the book about Nxt
Some other members of the Nxt communty are already present in our Hall of Fame. Click here to check it out!
If you don’t have a copy of SNAPSHOT – Nxt, Unsurpassable Blockchain
Solutions, we’d like to remind you that the book is already available in
a digital version for your reader in many specialized online platforms,
(Amazon, iBooks, GoogleBooks, etc, in addition to Nxter.orgPrint On Demand service by Lulu.com
Moreover, if you buy the digital edition of the book from Nxter.org
you’ll also receive a FREE BONUS of a code to redeem 100 NXTP assets,
the pdf version of the Nxt 2nd Anniversary e-book, all together with the
SNAPSHOT – Nxt, Unsurpassable Blockchain Solutions ebook package
(.mobi, .epub and .pdf)
More information: nxter.org/snapshot-nxt-unsurpassable-blockchain-solutions/
(Back to the Index)
Ardor – The Public Testing is Going On
Ardor is only going to be in testnet for about 5-7 months until
mainnet launches, which is expected to happen sometime in the third
quarter of 2017. To participate in the Ardor testnet, you have to
download the latest Ardor client herehere (ARDR, IGNIS) in order to start testing the new platform by yourself.
On the other hand, if you don’t have time or aren’t interested in
helping with the test and just want to feel the experience of surfing
through Ardor’s GUI, then you can use some of the open nodes that let
you access this testnet, such as the one set up by Riker http://22.214.171.124:26876/index.htmlhere and
create a new account (for security reasons, never use your real Nxt
account here) to explore everything that Ardor can offer you.
ou can stay updated about the latest progress of the testnet by visiting the #developers channel on Nxtchat on Slack
A new version
of the Ardor testnet has been has been released. The changelog for this
version includes some minor bug fixing and improvements to the client
UI, as well as peer networking, and improved blockchain download. A Node JS module has also been added. This is an experimental release for testing only, so the source code is not provided with it.
You can download the NRS update straight from your current Nxt client or from Bitbucket. Always make sure that the given SHA256 signature is exactly the same as the hash of that file.
This is what Riker, a core developer of Nxt, says about this new addition:
Earlier attempts to develop robust client API library for NXT and subsequently Ardor were faced with several challenges:
1. The API library had to send the passphrase directly to a remote node
in order to sign transactions, this meant that the remote node had to be
trusted, this severely limited the usability of the API library.
2. Some client libraries did implement local transaction signing but
still were unable to validate unsigned bytes data returned from a random
remote node thus still making it somewhat insecure to submit
transactions to a random remote node.
3. Client API libraries were developed by 3rd party developers which sometimes couldn’t keep up with the protocol changes.
In order to address these problems, in release 2.0.1e we introduced
application development using the Ardor platform APIs. This node JS
module is now integral part of the core and in fact is just a thin layer
Being so this node module has several advantages:
1. The Node JS module is able to work securely against any random Ardor node
2. Transaction data submitted to a remote node is validated against the returned unsigned bytes
3. Transactions are signed locally so that the account passphrase is never submitted to a remote node
4. Message encrytption can be performed client side
5. API calls work at a higher level compared to the APIs provided by the
existing test page, so that for example, complex numeric conversions
and various formatting functions are alreayd implemented by the API
6. Updates to this API library will follow the standard Ardor release process and will be maintained by core developers
To quickly get started using the node JS module, see instructions in the
./html/www/js/README file which is part of the 2.0.1e release.
The ./html/www/js/sample folder contains several code examples to get
you started quickly and provide a reference implementation.
Source and more information: nxtforum.org/general-discussion/ardor-node-js-module/
Docker is a tool that can package an application and its dependencies
in a virtual container that can run on any Linux server. This helps
enable flexibility and portability regarding where the application can
run, whether on-premises, a public cloud, a private cloud, bare metal,
As we mentioned in previous newsletters, running NRS in a Docker
container can be even easier than running it “the normal way”. It’s
especially useful when running Nxt on a VPS: No java required, no
download, no specific configuration… In addition to this, in spite of
being a type of “virtual machine”, it does not decrease performance.
A novel multiple blockchain architecture that allows users to create
their own, customized subsidiary blockchains, secured by the main
chain.Transactions from these blockchains, known as child chains, are
removed from the main transaction ledger approximately every 24 hours,
though special dedicated nodes, known as archival nodes, can keep all
information if so desired. This approach enables Ardor to scale up to
global transaction loads.Ardor solves the blockchain bloat issue with this prunable child chain infrastructure, which side chains do not solve.
Blockchain technology is increasingly entering the
mainstream consciousness. The developers at Jelurida BV have created a
platform that makes blockchain technology more accessible and delivers
scalable solutions for retail and institutional participants. Its
potential applications extend to a number of industries burdened with
legacy issues and antiquated transaction processing systems
Antony Peytonbrief overview over at Banking Technology about
the launch of testnet. The text enumerates some of the new features in
Ardor, which has use cases that go beyond financial transactions. The
author gives emphasis in the PoS model in which both Nxt and Ardor are
based on, and the benefits this model provides:
Ardor and Nxt operate on a proof-of-stake model that can
handle higher transaction volumes at a fraction of the energy cost and
at ten times the speed
Fortunately, Pablo LamelaLior Yaffe to
clarify some of these issues. Just a few days latter, Pablo announced
some amendments to their research. Lior and the Nxt community were very
glad and thanked the authors for their interest in clarifying all the
details about Nxt.
We have modified the paper in https://eprint.iacr.org/2016/1...
to improve the description of Nxt. Thank you @riker, for helping us
solve our doubts about Nxt and Ardor. Let us know if there are any other
problems with it.
Forged: 13172 LSK from Jan. 1st, 2017 to Jan 31th 2017 Holds: 9022 LSK
These funds have been used in this way: Donations to Community Fund: 750 LSK Donation to other members for development and lisk promotion: 1400 LSK Server Maintenance: 2000 LSK Personal Expenses: 0 LSK
MY CONTRIBUTIONS TO LISK:
7 LIsk nodes running 24 hours a day/ 7 days a week/ 365 days a year on Mainnet 2 Lisk nodes running 24 hours a day/ 7 days a week/ 365 days a year on Testnet
Edgeless ICO day is approaching, so we are going to release more information on our Edgeless Token.
to the many the poor ICOs that have come before, more and more
investors are getting serious about their investment protection. Since a
crowdsale is a ‘product’ for investors, we will outline here the main
crowdsale governance elements protecting investors from scams, token
devaluation, or a failed ICO.
1. Smart Contract Escrow — The
ICO is based on Ethereum Smart Contracts which automatically govern all
ICO process. Contracts are uploaded to the blockchain. During the ICO
it’s impossible to interfere with this process. It also works as an
escrow. What that means for ETH is that the smart contract automatically
sends EDG tokens to investors. Other famous projects which have used
the same escrow system are golem, vDice, and melonport.
2. Smart contract protection from hacking:
Edgeless ICO uses officially tested/ released Ethereum Foundation
contracts. We also build our contracts on that. However, ICO contracts
are relatively simple, so there are not so many points at which it can
be hacked. Moreover, we are carrying out significant contract testing
prior to the ICO, and our contracts will be audited by First Blood’s IT
advisor — Mikko Ohtamaa. Similar contracts have been used by other
successful ICOs, such as golem, vDice, melonport.
3. Early investor protection — ICO
minimum goal. We set milestone 1 as a minimum ICO goal of 50 000 000
EDG tokens sold (41666 ETH — 50 000 ETH). If this minimum goal is not
reached, the ETH is automatically returned to investors. This process is
guided by a Smart Contract, and it also protects early investors in the
event the project does not raise sufficient funds for development.
4. Unsold token burning — The
ICO sells 440 000 000 EDG tokens. Unsold tokens are automatically
burned by the Ethereum Smart Contract. Investors are thereby protected
from possible token devaluation, for example, in the event that half of
the tokens were not sold, and a development team was in a position to
devalue the token.
5. The dev. team gets 10% of the EDG tokens.
Tokens are automatically locked for 12 months by a Smart Contract. This
means investors can be sure that the Edgeless dev. team has an
economical incentive to increase the value of the token, and investors
are also protected from the risk of immediate token dumping following
6. Instant Bounty participant payouts are made based on the ICO ETH raised. Other part is released over time. This protects investors from bounty participants dumping tokens early and devaluing the token.
7. What if I do not understand Smart Contracts
and I cannot be sure that all the points mentioned above are actually
programmed into the contract? Actually contracts are not that long, and
we will release a medium post explaining which line is responsible for
which of the above functions. Our contracts will also be audited by a
3rd party to confirm that all the investor protection functions
mentioned above are actually programmed into the contract.
8. Profit sharing tokens risk NOT appearing on large exchanges. That’s why our project does not offer a profit sharing token or deal with exchanges beforehand.
9. Project communication after ICO:
Following the ICO, weekly project updates will be issued via
newsletter/ twitter/ blog and other channels. In this way the blockchain
community and investors can see the direction of the project. Constant
project communication also raises the value of the token and helps the
project to grow even more.
10. Raised funds diversification.
Cryptocurrency value jumps around quite often and there is a risk of
ETH price going down. Therefore, to protect raised funds from
unpredictable pricing, the fund will be diversified into several
What do you think about investor’s protection which is available due to power of an Ethereum Smart Contract?