Bitget Reports 1,600% Surge in African Users

September 20, 2024 Bitcoin.com

Nigeria’s SEC Denies Issuing Provisional Crypto Licenses

August 20, 2024 Bitcoin.com

Nigerian SEC to ‘Delist’ Local Currency From P2P Crypto Trading Platforms

May 8, 2024 Bitcoin.com

Tether USDT stablecoin goes live on TON blockchain

April 19, 2024 Coin Telegraph

Decentralized file sharing, explained

November 25, 2023 Coin Telegraph

Blockchain

Decentralized file sharing is a peer-to-peer network system where files are distributed across multiple nodes, eliminating the need for a central server.

The importance of decentralization in file sharing

Decentralized file sharing revolutionizes data access by eliminating dependence on centralized servers and utilizing P2P technology to distribute files across a network of nodes.

Distributing and accessing data without depending on a centralized server is possible with decentralized file sharing. Rather, files are kept on a network of linked nodes, frequently through the use of peer-to-peer (P2P) technology.

To enable file sharing, each network user can provide bandwidth and storage space. BitTorrent and InterPlanetary File System (IPFS) are two well-known instances of decentralized file-sharing protocols.

The decentralization of file sharing has completely transformed the way users access and store digital content. In contrast to conventional centralized file-sharing systems, which store files on a single server, decentralized file-sharing uses a P2P mechanism. Dispersing files among a network of linked nodes promotes a more robust and secure system.

Key components of decentralized file sharing

Decentralized file sharing depends on a number of essential elements to allow for a dispersed and safe data exchange.

Firstly, P2P networks, which enable direct user contact in the absence of a centralized server, are the backbone of a decentralized file-sharing system. By doing this, a robust system where participants directly share files is fostered.

Blockchain technology is essential to maintaining integrity and trust in decentralized file-sharing networks. It improves the general security of transactions and file transfers by enabling transparent and impenetrable record-keeping. Smart contracts are self-executing contracts with pre-established rules that automate tasks like access control and file verification.

Furthermore, files are distributed throughout a network of nodes using decentralized storage systems, which often use protocols like BitTorrent or IPFS. This approach eliminates the need for a central server and enhances the availability and reliability of data due to its redundant nature.

Cryptographic methods also protect the integrity and privacy of data. User confidence in decentralized file-sharing systems is increased by end-to-end encryption, which guarantees that only authorized parties may view the content. Together, these elements essentially provide a safe and dispersed setting for easy file sharing via the decentralized web.

How does decentralized file sharing work?

Decentralized file sharing operates on P2P networks by leveraging a distributed architecture rather than relying on a central server.

Peer discovery

Participants in the network (peers) need a way to discover one another, which is accomplished by using distributed hash tables (DHTs) or decentralized protocols. Peers build a network without a central authority by keeping track of other peers with whom they are linked.

DHTs are decentralized systems that enable distributed storage and retrieval of key-value pairs across a network, while decentralized protocols enforce communication rules that enable peer-to-peer interactions without relying on a central authority or server.

File distribution

A file is split up into smaller parts where every component is dispersed among several network peers. This approach enhances file availability, as it is not stored in a single location, ensuring better accessibility and reliability.

Dispersed storage

By distributing file portions over several nodes, decentralized storage systems lessen reliance on a single server. For instance, IPFS employs a content-addressed approach, in which files are recognized by their content as opposed to their physical location.

Peer interaction

Peers request and share file portions directly with one another. The coordination of file transfers no longer requires a central server, thanks to this direct connection. Every peer participates in the file distribution process by serving as both a client and a server.

Blockchain and smart contracts

Blockchain technology is incorporated into several decentralized file-sharing systems to increase security and transparency. Smart contracts are self-executing contracts with pre-established rules that can automate tasks such as access restriction and file verification and reward participants with tokens.

Often, decentralized file-sharing systems use cryptographic techniques like end-to-end encryption to provide privacy and security for the shared files. This ensures that the content can only be accessed and deciphered by authorized users.

Working of a decentralized storage system

Advantages of decentralized file sharing

The benefits of decentralized file sharing include enhanced resilience, improved privacy, scalability and censorship resistance.

By removing a single point of failure, it improves reliability and resilience. In a peer-to-peer network, where files are dispersed among several nodes and peers, the system continues to function even in the event that some nodes go down.

Also, decentralized file sharing, by its very nature, offers enhanced security and privacy. By ensuring that only authorized users can access and decode shared content, cryptographic solutions like end-to-end encryption help lower the danger of unauthorized spying or data breaches.

Better scalability can also be attained as the network expands. In decentralized networks, more users add to the network’s capacity, allowing it to accommodate more demand and traffic without requiring modifications to the centralized infrastructure.

Additionally, decentralized file sharing encourages resistance against censorship. It is harder for any organization to censor or limit access to particular files or information because there isn’t a single entity in charge of the network.

Furthermore, decentralized file sharing frequently incorporates incentive mechanisms through token economies or other reward systems to encourage users to contribute resources like bandwidth and storage, thereby creating a cooperative and self-sufficient environment.

Challenges and limitations of decentralized file sharing

Challenges associated with decentralized file sharing involve scalability issues, consistency concerns, user adoption complexities, security risks and regulatory uncertainties.

Firstly, as the network grows, scalability issues become more pressing. A poor user experience may result from increased involvement if it causes slower file retrieval times and greater bandwidth requirements.

Moreover, in decentralized systems, problems with consistency and coordination could surface. It may be difficult to maintain consistency in file versions throughout the network in the absence of a central authority, which could result in conflicts and inconsistent data.

Complicated interfaces and user acceptance present another difficulty. When compared to centralized options, decentralized file-sharing platforms frequently have a higher learning curve, which may put off consumers who are not familiar with P2P networks or blockchain technology.

Furthermore, security vulnerabilities still exist, especially in the early phases of decentralized file-sharing deployments. As these systems grow more widely used, they are targeted by different types of attacks, which makes the continuous development of strong security measures necessary.

Regulatory uncertainty is another difficulty. The adoption and long-term viability of decentralized file-sharing platforms may be impacted by the changing legal environment surrounding cryptocurrency and decentralized technology.

The future landscape of decentralized file sharing

The future of decentralized file sharing involves blockchain technology, P2P networks and tokenization for secure, efficient and collaborative data exchange, which challenge traditional models.

Decentralized file sharing is expected to bring about a more inclusive, secure and productive environment. Distributed ledger and blockchain technology will be essential in guaranteeing tamper-proof and transparent transactions and facilitating file sharing among users without depending on centralized intermediaries.

Decentralized protocols powering peer-to-peer networks will enable direct data transmission between users, cutting down on latency and reliance on centralized servers. Strong encryption techniques will allay privacy concerns and provide consumers with more control over their data.

Furthermore, tokenization could encourage resource sharing among users, resulting in the development of a collaborative ecosystem. Innovative file-sharing services will probably proliferate as decentralization gains pace, upending established paradigms and promoting a more robust and democratic digital environment.

Indian central bank-backed NPCI begins blockchain recruitment

September 4, 2023 Coin Telegraph

Coin Telegraph

Singapore, Malaysia, the UAE, France, Benelux countries, Nepal and the U.K. have adopted the NPCI’s UPI payments system to varying degrees.

The National Payments Corporation Of India (NPCI) — an initiative led by the Reserve Bank of India (RBI) and 247 Indian banking companies — is on the lookout for a seasoned blockchain technologist to head and investigate opportunities for blockchain in current-day payment systems.

NPCI owns and operates the Unified Payments Interface (UPI), India’s home-grown instant payment system that facilitates interbank peer-to-peer and person-to-merchant transactions. A recent LinkedIn job posting confirmed NPCI’s ongoing drive to hire a head of blockchain.

*NPCI’s job posting for a head of blockchain. Source: LinkedIn*

The ideal candidate will be a seasoned technologist with at least six years of experience in developing and implementing blockchain, who will be primarily tasked with identifying “avenues wherever blockchain-driven solutions can be used.”

The senior leadership position also demands an in-depth technical understanding of multiple blockchain platforms and previous experience working on at least two pilot blockchain projects. UPI’s success in fortifying the Indian payments landscape has garnered interest from other jurisdictions.

Singapore, Malaysia, the United Arab Emirates, France, Benelux countries, Nepal and the United Kingdom have adopted the UPI payments system to varying degrees. Infusing blockchain elements in the UPI can potentially expose the technology to millions of users in an instant, thus reaffirming the capability of the underlying tech that has continued to power Bitcoin (BTC) for nearly 14 years.

The NPCI job application had over 200 applicants at the time of writing. NPCI’s blockchain hiring drive is expected to increase in the near future once viable blockchain use cases are unearthed.

In August, the United Kingdom’s National Crime Agency (NCA) set out to hire four senior investigators for its Complex Financial Crime Team to work on crypto-related crimes.

*Job posting for digital assets investigators. Source: National Crime Agency*

The investigators will be tasked with pursuing high-end crypto fraud, money laundering and other blockchain-based crimes carried out by organized crime groups.

The U.K. has been working to establish an investigative team focusing on illicit crypto activities. On Jan. 4, the NCA launched its digital assets team, signaling an increased focus on crypto assets.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in

Crypto P2P scams in India show digital asset education is needed

August 22, 2023 Coin Telegraph

Bitcoin Scams

Scammers have made it impossible for Indian crypto traders to conduct P2P trades owing to several police complaints and bank account freezes that follow.

Peer-to-peer (P2P) cryptocurrency trading has been a staple of the cryptocurrency community since the industry’s early days.

P2P trading refers to the direct exchange of cryptocurrencies between two users without the involvement of intermediaries. P2P exchanges link buyers and sellers while also adding an extra degree of security through an escrow service. Some of the key advantages of P2P over centralized exchanges include global accessibility, a variety of payment alternatives and no transaction fees.

Furthermore, P2P marketplaces have become crucial for crypto traders and enthusiasts in jurisdictions where governments are hostile to formal cryptocurrency exchanges and service providers.

In India, they became a lifeline for many crypto traders when the country’s central bank issued a banking ban on cryptocurrency businesses in April 2018.

Although the banking ban was eventually lifted by the Supreme Court in March 2020, P2P platforms continue to play a crucial role as banks remain sceptical about offering services to crypto exchanges due to a lack of regulatory clarity.

During the bull market in 2021–2022, India saw a significant surge in crypto trading volumes and crypto platforms, prompting the government to take notice of the nascent ecosystem.

Recent: PayPal’s new PYUSD stablecoin faces legal headwinds and ‘less functionality’

While industry leaders demanded a comprehensive regulatory framework, which has been under development since 2019, the Indian finance minister announced a 30% tax on crypto profits in 2022.

The heavy tax, in addition to the continuing lack of regulatory clarity, has been the bane of the budding Indian crypto ecosystem, deterring Indian investors away from the market.

While mainstream crypto exchanges struggled, P2P platforms saw their volumes skyrocket.

How P2P scams happen

This rise in P2P trading volume also led to significant uptick in P2P scams. These scams often use stolen banking data or lure customers with fake promises of high profits and then use their banking information to scam P2P users.

Earlier in July, two people were arrested in the Indian city of Ujjain in connection with a Binance P2P scandal. The police recovered several fake bank accounts, ATM cards and documents from the accused, who were allegedly buying fake IDs and personal data for 1,500 Indian rupees ($18) in order to scam users of Binance P2P.

Two Accused In Binance P2P Scam Arrested In Ujjain, India

Two accused of scamming people on #Binance P2P arrested by police in Ujjain, India. Many fake bank accounts, ATM cards and documents are seized from accused

The accused used to buy Fake ID Proofs and personal data… pic.twitter.com/Nt5GxhVmio
— Ajay Kashyap (@EverythingAjay) July 11, 2023

One way P2P scammers steal user data is with the help of fake crypto-centered channels on Telegram that promise high profits or airdrops. Many gullible users looking to make a quick profit often join these channels and share their personal banking information. In many other cases, the scammer simply buys or steals the user’s personal information.

The stolen data is then used to create a P2P account on any popular P2P platform — Binance and WazriX are common in India.

The scammer then initiates a buy order on the P2P platform looking for unsuspecting sellers. Once they match with a seller, they send the money to the seller using the victim’s account. Thus, they complete the P2P transaction on the platfrom where the buyer receives the cryptocurrency and the seller receives the money in their bank account.

The buyer (scammer) then vanishes with the crypto and the victim whose bank account was used to send the money only realizes it after the money has been deducted from their bank account.

The victim then lodges a complaint with the police whose first step is to freeze all bank accounts that the victim has interacted with during the scam phase.

This action from the police triggers an extended account freeze for unsuspected sellers of the P2P platform who only realize they were involved in the scam after they get a call from the police or their bank informs them that their account has been frozen.

In one instance, a seller, who wished to remain anonymous, received a “bank account frozen” message while trying to pay for a taxi. After contacting the bank, the seller learned that the halt was requested by the police’s cyber division responsible for looking into online crimes.

When the seller then followed up on the complaint with the police and enquired about the freeze on the account, they were met with threats of legal consequences from the Enforcement Directorate, India’s economic intelligence agency, for a $40 P2P completed transaction on WazirX in October 2022.

The police complaint was filed by a woman who was scammed out of $30,000 between September 2022 and June 2023. The police started the investigation and froze every bank account that interacted with the plaintiff’s accounts during the mentioned time frame, including the sellers for the October transaction.

The seller tried to explain to the police officer that they had successfully completed the P2P transaction and thus have no role in the scam. Despite this, the police ignored their claims, erroneously claiming that crypto transactions are illegal and stating that they must pay the complainee $40 or face further legal action.

With no other options left, the victim eventually paid the $40 amount to the plaintiff’s account after which the police released an order to unfreeze the account.

The police did not respond to Cointelegraph’s request for comment.

The bank account restrictions limit unsuspected victim’s access to cash, and the complexities involved in getting the issue fixed are significant. The seller — who often is also unaware of the scam until the last moment — could be subject to a legal investigation or be required to provide evidence.

Problem using P2P in India still continues. @cz_binance do something. @TheOfficialSBI Got my account frozen. pic.twitter.com/Y6By4l5RGy
— Balamurugan Lakshmanan (@balamurugankl) July 11, 2023

There have been several instances of such P2P scams over the past year where victims noted their fear of authorities, with police often threatening legal actions. The anonymous seller told Cointelegraph that their account was frozen with 50,000 rupees in it, adding that they are very afraid of how to approach authorities and whether they would face legal consequences.

Some advise against P2Ps

Due to a lack of clear guidelines around crypto-related crimes and a lack of understanding of the technology underpinning cryptocurrencies, police investigations often start with freezing the accounts of anyone involved in the situation.

Pushpendra Singh, a prominent crypto personality and educator in the Indian crypto ecosystem, told Cointelegraph that scammers take advantage of the police’s ignorance of how crypto works:

“What these scammers do is they often use platforms, such as international Binance platform, to evade investigation from the Indian authorities, as it becomes quite difficult for the authorities to demand documents from such international platforms. Scammers then take the stolen USDT to Trust Wallet or any other non-KYC’d platform to avoid being tracked. While scammers get away with the money, both buyer and seller in the transaction face financial and legal consequences.”

Singh said that Indian police need to be actively trained on how these scams work. He noted that the “lack of awareness around the nascent tech also leads to victim harassment where many victims are often told by the police that crypto transactions are illegal in India.”

P2P scams have become very common and concerning to the point where the majority of crypto experts in India have now asked traders to avoid P2P trading. Sumit Gupta, CEO of CoinDCX — a major crypto exchange in India — said crypto traders should avoid P2P transations.

Magazine: Should we ban ransomware payments? It’s an attractive but dangerous idea

He said that many people in India got a notice from various government authorities just because they unknowingly sent money from someone who wasn’t the right person to deal with.

Guys, P2P is extremely risky. I’ve been telling folks to avoid using any kind of P2P platforms, it’s an open invitation to trouble.

I know so many people in India got notice from various govt authorities just because they unknowingly sent INR or received INR from someone who… https://t.co/3CoyceiPwP
— Sumit Gupta (CoinDCX) (@smtgpt) April 28, 2023

Other crypto personalities have urged traders to be vigilant and make sure the P2P account one is interacting with has a good history.

What started out as a crypto revolution has turned into a weak spot for the Indian crypto ecosystem.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Belarus wants to ban P2P cryptocurrency transactions

July 3, 2023 Coin Telegraph

Belarus

The Ministry of Foreign Affairs of the Republic of Belarus cited a high crypto crime rate for banning all citizens from exchanging Bitcoin with each other.

The Belarusian foreign ministry is working on legal amendments to prohibit peer-to-peer, or P2P, transactions in cryptocurrencies like Bitcoin (BTC).

The Ministry of Foreign Affairs (MFA) of the Republic of Belarus on July 2 issued an official announcement on Telegram about new legislation that would ban P2P crypto exchange for individuals.

The authority cited a high cybercrime rate in Belarus, stating that local prosecutors have suppressed the activity of 27 citizens providing “illegal crypto exchange services” since the beginning of the year. Their total illegal revenues amounted to nearly 22 million Belarusian rubles ($8.7 million).

The foreign ministry argued that crypto P2P services are “in demand among fraudsters who cash out and convert stolen funds and transfer money to organizers or participants in criminal schemes.”

In order to eliminate such illicit activity, the MFA will prohibit individuals from P2P and will only allow them to exchange crypto via exchanges registered with Belarus Hi-Tech Park, (HTP). The regulator stated:

“The MFA is working on legislative innovations that prohibit crypto exchange transactions between individuals. For transparency and control, citizens will be allowed to conduct such financial transactions only through the HTP exchanges.”

The authority also noted that it plans to implement a practice similar to the procedure for exchanging foreign currencies, which will make it “impossible to withdraw money obtained from illegal activity.”

“Under such conditions, it will simply become unprofitable for information technology fraudsters to operate in Belarus,” the MFA wrote.

In response to the news from Belarus, many cryptocurrency enthusiasts have questioned the government’s ability to ban P2P cryptocurrency trading. “Good luck enforcing it,” one crypto observer on Twitter said.

P2P exchange is the original idea of Bitcoin, as written by anonymous BTC creator Satoshi Nakamoto in its white paper. According to Bitcoin advocates like Jan3 CEO Samson Mow, banning P2P apparently is not an easy task, if not unfeasible. The exec told Cointelegraph in June that many users in China still use P2P channels to exchange their crypto despite the country banning all crypto transactions for users in 2021.

The latest news from Belarus is somewhat contrary to legislation Belarus has passed in recent years. In 2022, Belarusian President Alexander Lukashenko signed a decree affirming the country’s formal support of free circulation of cryptocurrencies like Bitcoin.

Magazine: AI Eye: AI travel booking hilariously bad, 3 weird uses for ChatGPT, crypto plugins

Tether signs MoU with Georgia to develop Bitcoin P2P infrastructure

June 28, 2023 Coin Telegraph

Coin Telegraph

The collaboration intends to bring changes to public administration and the business sector.

Stablecoin issuer Tether has signed a memorandum of understanding (MoU) with the government of Georgia to develop Bitcoin and peer-to-peer (P2P) infrastructure in the country. The strategic collaboration between the Tether and the Georgian government will focus on building key infrastructure for a thriving startup ecosystem in Georgia.

The collaborative effort aims to attract international attention and investment toward the nascent decentralized space. The partnership aims to foster the growth of P2P technology at a state level and help build financial tools around it. Some of the key areas of development include education on Bitcoin (BTC) and blockchain technology, building payment infrastructure for merchants, and developing a resilient, open and private P2P communication system.

Paolo Ardoino (CTO, Tether) and Irakli Nadareishvili (Deputy Minister of Economy and Sustainable Development) signing the MOU for the collaboration between Tether and the Government of Georgia to develop Blockchain, #Bitcoin and Peer-to-Peer Infrastructure. pic.twitter.com/g3LayZxDPX
— Tether (@Tether_to) June 28, 2023

Tether said the partnership with the Georgian government would also look at creating and implementing a strong, autonomous financial and communication system. This entails encouraging the adoption of P2P technology-based digital payment and communication systems, as well as improving existing infrastructure to ensure its robustness and dependability in supporting blockchain-based solutions. The collaboration intends to bring changes to public administration and the business sector.

Georgia will create a special fund for local startups to help develop blockchain technologies and position Georgia as a country with an attractive ecosystem for tech startups. Irakli Nadareishvili, Deputy Minister of Economy and Sustainable Development, said the collaborative effort “will contribute to the development of local blockchain technologies in the country, as well as the introduction of companies operating in this sector in Georgia.”

Tether’s collaborative effort in Georgia is not its first. Over the years, many crypto companies have worked closely with governments to advance the nascent technology. In most cases, collaborations translate into a better understanding of the tech by governments, eventually leading to positive regulation.

El Salvador, the first country to make Bitcoin a legal tender, had Bitfinex as its key exchange technology partner and granted the country’s first digital asset license to the exchange. Similarly, crypto exchange Binance signed an MoU with Kazakhstan in May 2022 and received compliance approval from the government a year later.

Tether didn’t respond to Cointelegraph’s requests for comments by publication.

Magazine: Cryptocurrency trading addiction: What to look out for and how it is treated

Bitfinex launches P2P trading platform in Venezuela, Argentina and Colombia

June 27, 2023 Coin Telegraph

Argentina

The launch announcement followed expansion moves by Bitfinex into El Salvador and Chile through licensing and partnerships, respectively.

Digital asset exchange Bitfinex has launched a peer-to-peer (P2P) trading platform in Venezuela, Argentina and Colombia.

In a June 27 announcement, the crypto exchange said it had started the “Bitfinex P2P” platform allowing users in the South American nations to buy and sell Bitcoin (BTC), Ether (ETH), Tether (USDT), Tether’s euro-pegged stablecoin EURT and Tether Gold (XAUT). Bitfinex chief technology officer Paolo Ardoino suggested the expansion into the three countries was part of the firm’s efforts to promote digital asset-related financial services in Latin America.

Something BIG is happening! #BitfinexP2P is redefining P2P trading, driving economic growth, and promoting financial inclusivity in LATAM.

Learn more: https://t.co/xHloxLnbTh pic.twitter.com/gw2Y9X4CfP
— Bitfinex (@bitfinex) June 27, 2023

The launch announcement followed Bitfinex’s El Salvador arm receiving a digital asset service provider license from the country’s National Digital Asset Commission in April. The exchange also partnered with Chile-based crypto platform OrionX in May, aiming to support local education programs and financial literacy.

P2P crypto exchange LocalBitcoins, which provided services to many residents of Latin America, shuttered its operations in February after more than 10 years. Paxful, another platform popular in the region, suspended operations in April but announced in May it was back online.