Debunqed

Tag: tokenisation

  • Tech Game Changers

    Tech Game Changers

    The pandemic has thrown us into a state of flux and some tech entrepreneurs have found opportunities in the funk. One major trend involves playing with blockchain technology.

    Even though most people you come across pretend to understand blockchain, many don’t actually understand its full capabilities. Some clever Trevors, however, are making it work for them.

    DeFi (Decentralised Finance)

    For centuries, our money has been controlled by central banks. But this has given too much power to certain authorities. Now cryptocurrencies are set to help us shake the game up.

    Enter DeFi or Decentralised Finance – an umbrella term that refers to a variety of financial applications in cryptocurrency. These DApps are geared toward changing the roles of financial intermediaries or removing them altogether.

    Essentially, DeFi is a financial system built on public blockchains such as Binance Chain, PolkaDot, and Ethereum.

    It is a relatively new project which started later than Bitcoin in 2014. It was brought into the limelight in 2020 by a little-known South African called Andre Cronje. Cronje created the now almost billion-dollar DeFi-protocol called Yearn Finance (YFI).

    DeFi is an alternative to what people feel is an outdated, clunky financial system that is inefficient and prone to abuse. The idea is that DeFi will be a new digital-only and fully automated financial system which exists separately from our enormous, interlinked financial system.

    When you swipe your card, the institution has control over your transaction and retains the authority to record it in its private ledger, stop or pause it.

    Advert

    They also control financial all matters like insurance, loans, and alternative investments like derivatives, crowdfunding, and gambling. All this while literally owning all your data. They can use or share them with their stakeholders as they wish.

    Functionality

    DeFi aims to create an open-source, permissionless, and transparent financial service system. The yields you get from borrowing and lending digital assets on these platforms also put those offered by traditional banks to shame. This system is also relatively safe because lenders are certain to get their assets back because you need collateral (other cryptos) to borrow in the first place.

    You even, in DeFi, have mechanisms to maintain liquidity – just like Central Bank’s liquidity swaps. Some of them have ridiculous names like SushiSwap or PancakeSwap and perform these functions surprisingly well. this is possible because of their underlying computer-backed algorithmic technology.

    The current centralized nature of the global financial system means wealth is only amassed by those that have access to financial services. This has created further inequalities in our societies.

    Nevertheless, DeFi is a rapid technological innovation that is helping us to decentralize financial systems and foster financial inclusion. Cutting out the middleman also involves the use of Smart Contracts. Naturally prone to attach it is evolving but quickly gaining the acceptance of those ‘in the know’.

    Smarter Contracts

    According to Blockgeeks, a smart contract is a computer protocol intended digitally to facilitate, verify or enforce the negotiation or performance of a contract. They allow the performance of credible transactions without third parties.

    For example, ordinarily, you would go to a lawyer or a notary, pay them, and wait while you get the document. With smart contracts, you simply drop Crypto into a vending machine-type structure (digital ledger), and your escrow, driver’s license, or whatever, drops into your account.

    Courtesy: Law and Forensics.


    Smart contracts define the rules and penalties around an agreement just like a traditional contract does. Additionally, they also automatically help you enforce those obligations.

    Ethereum is the industry-leading Crypto company/platform that provides that functionality. It is, however, receiving strong competition from newcomer platforms such as Binance Smart Chain – which is actually a revised clone of Ethereum.

    Non-Fungible Tokens (NFTs)

    This is a technology that has been around for a few years but is enjoying new popularity. Fungibility refers to something that is easily interchangeable, such as the exchanging of a $50 note for five $10 notes.

    But non-fungible tokens have been created with the opposite goal.

    These are unique or scarce digital objects represented as tokens that cannot be replicated.

    They are literally anything that can be digitalized to form a collectible item – just like your paintings, collectible cards, or stamps.

    This is why they are infiltrating the auctioneering world. Digital content is tokenized through a process called minting.

    Minting involves assigning a coin on a blockchain to any given work and you can assign as many copies as you so desire.

    A key difference from authenticating other objects is that instead of a physical certificate of authentication, NFTs use blockchain technology as a verifiable digital ledger.

    The NFTs created on Ethereum’s blockchain are immutable, so they cannot be altered. No one can undo your ownership of the NFT.

    Some of the notable tradable (native) NFT tokens include Enjin Coin (gaming), Chiliz (entertainment) and Terra Virtua Kolect (VR artwork).

    Coloured coined NFTs

    In 2017, a game called CryptoKitties was invented. This was a blockchain game that allowed players to adopt, raise, and trade virtual cats.

    At one point, CryptoKitties were selling hundreds for thousands of euros. Since then, people have been pumping money into the NFT market which has more than quadrupled in value since the pandemic.

    Investors saw the value of investing in a verified item of art that no one else possesses. As a result, many new digital (NFT) marketplaces such as OpenSea and SuperRare were established – and thriving. The NBA has also gotten in on the action. NBA Top Shot is a first-of-its-kind collectible website that allows you to collect, trade, and sell your favorite NBA highlights as digital tokens. One of the highest-selling NFTs there (only 2 minted) is one of a reverse dunk by LeBron James – which fetches a cool $210 000.

    Rock band, Kings of Leon earlier in March 2021 became the first musical artist to sell its album as an NFT. Their eighth studio album, When You See Yourself, is being sold in standard digital and physical formats but also has an NFT.

    Within a week, the album had made more than $2m. This includes around $500 000 which was donated to Live Nation’s Crew Nation, designed to support live music crews during the pandemic.

    Enter the Dogecoin

    The year 2021 wanted to add a bit of humor to the world whilst making some people rich. You may call them clever or maybe reckless – or both, but some people traded an invisible investment called Dogecoin and significantly pushed up its price.

    Dogecoin was like a parody of Bitcoin symbolized by its face, the Doge meme. Entrepreneur Elon Musk punted the coin which was actually started as a joke in 2013. The price of dogecoin has exploded by more than 1,100% this year.

    The cryptocurrency has gained increased attention from endorsements by Musk, who at one point was the world’s richest man on paper. Entrepreneur Mark Cuban, rapper Snoop Dogg, and musician Gene Simmons are also backers of the Crypto-coin.

    Now Musk wants you to be able to trade Dogecoin using the Coinbase platform.

    Musk’s Tesla motor car company had allegedly used the Cryptocurrency exchange to buy $1.5bn worth of Bitcoin in February.

    The Gamestop effect

    Also this year, online traders caused chaos among financial systems, showing big institutions that they can beat them at their own game.

    A bunch of people got together on Reddit and discussed how they would pump up the price of Gamestop, a US rental games company. Gamestop saw its fortunes wane as people turned away from buying or renting disc versions of games in favor of downloads. The Reddit ‘movement’ was aided and abetted by a group called WallStreetbets.

    The group has since pledged millions of dollars from the proceeds towards saving Gorillas – epic!

    Its founder, Jaime Rogozinski, has also signed a deal in Hollywood to make a film about the incident.

    The price went through the roof as Gamestop became a gambling tool, with little underlying value in the company.

    A number of people won big but others who got in late weren’t as lucky. The price later crashed, costing gamblers a lot.

    It has since fluctuated wildly and is now on a downtrend. For every new multimillionaire, there has been someone who has lost their life savings.

    Tread carefully with new technologies

    It will take time for the use of these new technologies to settle in our society. You must, however, be skeptical even when Musk, who recently changed his designation from CEO of Tesla to ‘Technoking’ posts such things on a social platform.

    Whenever he tweets something, people react. Musk convinced scores of people to buy Dogecoin and now he is quite excited about NFTs.

    The Billionaire recently actually turned down a $1.1m offer to buy one of his tweets as an NFT after putting it up for sale, quoted saying: “it doesn’t feel quite right.”

    Musk said that he was going to sell a tweet of a song about NFTs as an NFT. This was days after an NFT had sold for a record $69m. But it turned out he was joking around when he tweeted: “Actually, doesn’t feel quite right selling this. Will pass.”

    Elon’s $1m NFT

    Musk’s tweet was listed on the blockchain-backed auction platform valuables and has attracted a bid of $1.12m from a user called @sinaEstavi.

    The tweet is of a techno song about NFTs, with the lyrics: “NFT, for your vanity, computers never sleep, it’s verified, it’s guaranteed.”

    If you don’t believe how volatile these currencies are, just check out how Bitcoin lost more than 80% of its value from December 2017 to May 2018. It is currently hovering just below $60,000 after a low of around $3,500 only in March 2020.

    If you decide to invest, do so knowing that rapid price fluctuations come with the territory.

    Remember these new blockchain assets are highly volatile investments. Their values can swing literally like a yoyo, based on the jokes made by a multi-billionaire who wants to live in space.







  • The Online Threats of 2019

    The Online Threats of 2019

    How you can stop them from happening.

    Like a biological virus mutates – as technology advances so do the complexity of phishing and identity theft schemes. With major services adopting cloud technologies and storing private data online, anyone is vulnerable to hacking.

    To make matters worse, hackers continue to come up with some pretty creative ways to profit from stolen information.

    Without wasting time, these are the things you should already be doing to avoid being exposed to hackers in the first place:

    In order to keep these cyber-criminals out of your lives and computers, let’s take a look at some of the actual schemes to watch out for in 2019.

    Hacking

    We all know what hacking is by now – the term has almost become synonymous with internet security. So a question is: do you love watching movies on Netflix or jamming out to your summer playlist on Spotify? If the answer is yes, then you’re at a pretty high risk of getting hacked.

    DynaRisk, a UK cybersecurity firm, recently found that cybercriminals most commonly target these brands, along with adult-oriented sites (you know what we mean) and then, online gaming services.

    Identity Theft

    A few weeks ago, authorities caught a New York-based gang who had used identity theft to steal over $19 million worth of iPhones. Quartz reported that this operation ran for seven years.

    So-called “Top Dogs,” the ring leaders, would organize lower level members of their organization to steal identities and create clone credit and identity cards. Then, affiliates fanned across the nation, signing up for mobile phone plans to acquire iPhones, which were later sold for a profit by the Top Dogs.

    Because phone payment plans take the shape of nominal fees over the course of several years, victims often wouldn’t notice the fraud until it was too late. Learn how another scheme dubbed sim port attack works in the diagram below:

    Ransomware

    Hacking can happen to anyone – including our favorite bands. In early June, a hacker managed to steal the minidisk archive of Thom Yorke, the lead singer of Radiohead. This included previously unreleased demos and audio material from around the time of “OK Computer,” the band’s 1997 worldwide hit album. The hacker then demanded $150,000 on the threat of releasing it.

    Holding files for ransom is so common nowadays that it even has its own name: “Ransomware.” Either pay over the ransom or lose your files—or, even worse, have them released onto the unforgiving Internet.

    In response, Radiohead released all 18 hours of material on Bandcamp themselves, winning against these ransom hackers.

    Most security experts recommend the same route as Radiohead—never pay the ransom, because there’s no guarantee you’ll recover files or prevent their release.

    Sextortion

    If you think ransomware is bad, there’s an entire subgroup of it aimed to profit off sexual shame. Cheekily named “Sextortion,” some hackers creatively upgraded the classic email phishing scam to scare victims into handing over Bitcoin.

    According to Fortune, hackers have already racked up over $900,000 with sextortion. In these phishing emails, the sender claims to have spied on you while you watched porn—and has webcam footage of the salacious deeds. The message then demands a Bitcoin ransom, or else face the social and professional consequences of this lewd video getting sent to all your contacts.

    To make the threat even more believable, the sender references a previous password tied to the user’s email account. According to Krebson Security, a sextortion phishing message might look a little like what’s written in the sidebox.

    In rare cases, the threats are real—and hackers get their hands on some sexually explicit photos. Recently, American actress Bella Thorne fell victim to sextortion. Last Saturday, she took a similar, albeit more risqué, route as Radiohead, opting to release her nude photographs on Twitter in order to take the power away from her hacker.

    Last thoughts

    So, what’s the best way to avoid your personal, or, business from costing thousands in virtual currency? Since most of these emails are fake, you can just avoid them with a spam filter. And you should probably buy a webcam cover…just to be safe. When it comes to general browsing- we suggest using a VPN.

    Read more about VPNs here

    There are now more secure anti-hacking tools that use the Blockchain and offer great protection, especially against identity theft. Have a look at our feature on Tokenisation.

    Most online services now like mobile banks, offer App-based 2-factor authentication. This should now be regarded as the minimum security for ANY online account or App.

    To avoid hacking or phishing scams in general, optimizing your cybersecurity and using online common sense will save you loads of time, trouble and money.

    Cybersecurity by Acunetix
  • Open Banking – too exposed?

    Open Banking – too exposed?

    As a human race, we are constantly striving for easier ways of doing things: simpler, faster, and more practical. Thanks to better tech, you can now interact with people globally and instantly with the click of a few buttons.

    Likewise, you can also physically move quickly due to advances in transportation technology. When it comes to the age-old practice of banking – the same is now happening.

    Provided you have the necessities, a passport, residential address and a mobile phone, you can now open a bank account within minutes. This is brought about by a Fintech offering better known as Open Banking.

    Open banking uses APIs that enable third-party developers to build applications and services around the financial institution.

    Wikipedia

    It is ultimately about giving you a better, secure, and flawless service experience. This comes with the opportunity to gain access to excellent financial products.

    Online security expert and Chairwoman of Zortrex, Susan Brown reflects on the advent of the new offering:

    “Just over a year ago when Open Banking came into the limelight for the Fintech world. CMA9 were effectively mandated to make their banking platform accessible for third party companies.”

    A comprehensive global report commissioned by Accenture emphatically highlighted growth and talking points about the emerging industry in 2017.

    MS Office package

    This is all wonderful, innovative, and promotes transparency within the financial services market. There is only one drawback:

    “Consumers really do not know what Open Banking means, there has been a lot published about the benefits that are to be had from Open Banking. At the same time, consumers have become very aware of the negative aspects around sharing their data.”

    Scourge of hacks & breaches

    Daily, you hear more and more about hacks, and data compromises. With the UK’s Lloyds Bank breach last year; the trust by its consumers to share their financial and personal information, some would say, is completely gone.

    In addition, you go onto a site to review products and before you know it, you are bombarded with adverts on the products that you have been looking at elsewhere. This has led some consumers to abandon shopping carts and refrain from using online retailers.

    If not adequately protected, the newly established Fintech system might suffer a similar data breaches.

    Visa and Mastercard for one, are among the established firms threatened by Open (Mobile) Banking. And so, they should be according to Brown.

    “As consumers knowledge grows about their data and the security around their financial data has not been secure as shown with the Marriott hack.”

    Naturally, new systems pose a huge threat for banks. They become the digital gateway channel connection to the financial sector. This eliminates the direct relationship between consumers and banks.

    This is not a bad thing as banks are overwhelmed and cannot always keep in touch with everyone.

    An added layer of protection

    The solution for failing global acceptance would be for a new Fintech company to gain the trust of its new customers. They would naturally also be able to chip away at the market share of other expensive financial institutions.

    What you as a consumer know and want is privacy and security. Currently, only banks can make this happen – but at a high cost.

    With a new digital tokenisation system like Zortrex vault, you can concurrently let your consumers reap the awards on their transactions.

    They can as a result, gain redeemable tokens for patronising your services. This can occur while both you and your partners offer them products globally.

    “Don’t be a gateway for the challenger banks be in control of your omni channel for your consumers,” Brown advises

    Read more about Zortrex’s solution to privacy here.

    This contains excerpts from Susan Brown about Open Banking initially published on her LinkedIn page.  

     

     

     

  • Digital Dribs & DApps!

    Digital Dribs & DApps!

    We have barely scratched the surface with the Internet (from the early eighties) and it is already seemingly being threatened with the competition. A possible replacement by a new phenomenon.

    Well, for lack of a better word, “replaced” has connotations of a dying Internet. This is far from accurate. This new phenomenon – fostered by blockchain technology, will change the way we use and consume the Internet as a service.

    So, what is this new Internet-like system creating waves online? And why is it making online marketers quiver at the prospect of them losing out on the exponential revenues they have previously enjoyed?


    Well, without hyping it up any further, it is called Distributed Applications or ‘DApps’ for short.

    A brief history of Apps

    Before we delve further into its meaning and use in the cyber world, perhaps some background context is required.


    The way we use online or mobile applications software or “Apps” has changed how we consume products and services online. Companies jumped onto the bandwagon when they discovered that we mostly use Smartphones for the Internet.

    App developers were then subsequently sought after to create mobile Apps for practically anything.  What started as something mainly for gamers moved quickly onto applications for practically any commercial activity.


    We now use Apps for our shopping; fitness; traveling; online bookings and banking. Developers now create customized software to help us with practically, anything.


    In addition, we now have App stores for every significant tech provider – Microsoft, Google, and Apple to mention a few. This has naturally fattened the pockets of software companies and created an additional stream of income for them.

    The ‘catch’ for using mobile apps is that even though it costs you nothing to download, using them still requires you to register with your personal details. You can also do this by linkingyour existing social media accounts.

    The benefit to App providers

    These Apps, which are integrated with social media services, create a data goldmine for marketers to study and track browsing habits. Through them, marketers can gain valuable insights into your interests and then customize their products/services to sell to you.

    The impetus behind a distributed application system is that it serves to distribute plow some of the wealth garnered from your data via application providers back to you.

    Data mining has become more lucrative and accessible because of Artificial Intelligence (AI) and Machine Learning. Do you ever notice how after browsing online or having a conversation or a chat application like WhatsApp or Facebook Messenger? You go online later, and you see Ads displaying the items you discussed? Creepy isn’t it? Well, that is the future of Web 4.0 for you!

    Staying ‘woke’

    Luckily for us, there is a school of knowledgeable and security-conscious programmers who are not ‘giving in’. They help us understand how the Internet has become a cesspool for marketers to harvest our data. Social media platforms, search engine providers, and mobile application providers facilitate them immensely with this.

    Image Courtesy of blockgeeks

    Imagine getting paid to surf the web for hours. The way you get paid for taking on a survey, partaking in a social experiment, donating an organ or sperm?


    This is the way distributed apps are touted to work. They reward you for the use of specific applications (in a peer-to-peer review setting) with cashable tokens. Seems only fair right?


    Now you can imagine how companies like Cambridge Analytica would react to having to pay you for their use of your data. They would surely be reluctant and that’s why they preferred to work clandestinely. But if they could pay companies like Facebook for the use of data, why not pay us directly?

    Early adoption

    Joining the ‘DApps revolution’ is a no-brainer. Those at the forefront of building and supporting DApps will end up with a more substantial chunk of the market.

    DApps primarily provide you with the use of payment systems. These are specifically known as Smart Contracts and Proof of Work systems.


    There are currently also web-browsers (built as DApps on blockchain platforms such as Ethereum or EOS) that will reward you for merely using their DApps.


    For instance, you are rewarded in cashable tokens to surf the net over applications like Google Chrome, or Mozilla Firefox.


    It is only a matter of time that this form of Internet-browsing and use of applications becomes the norm.


    The Internet revolutionized the way we communicate, socialize, learn, shop, and do business online. DApps however, will determine the way you get compensated for doing the things you love to do online.

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