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Meta Reportedly Preparing for a New Round of Layoffs

Meta Reportedly Preparing for a New Round of LayoffsMeta, the company that owns Whatsapp, Instagram, and Facebook, is reportedly preparing to announce a new round of layoffs in the coming days. According to reports, the company is delaying the finalization of the budget for each one of its teams, causing operational delays and affecting the output of employees of the company. Meta to […]

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Meta Calls 2023 a ‘Year of Efficiency;’ Anticipates More Losses in Its Metaverse Division

Meta Calls 2023 a ‘Year of Efficiency;’ Anticipates More Losses in Its Metaverse DivisionMeta, the company that owns Facebook, Instagram, and Whatsapp, has shared its fourth quarter results, reporting better numbers than expected. While the company beat revenue estimates, CEO Mark Zuckerberg declared 2023 a “Year of Efficiency,” hinting at a further restructuration of the company to focus on its AI (artificial intelligence) and metaverse projects in the […]

BTC price chart seen mirroring US spot Bitcoin ETF launch pattern

Russia to Ban Banks From Using Messengers Like Telegram to Contact Customers

Russia to Ban Banks From Using Messengers Like Telegram to Contact CustomersFinancial institutions in Russia will not be able to communicate with clients through instant messengers based outside the country, local media revealed. A new law passed by the State Duma also prohibits banks from using chats to send personal data and payment documents. Bill Restricts Russian Banks and Brokers From Sending Sensitive Information Through Foreign […]

BTC price chart seen mirroring US spot Bitcoin ETF launch pattern

Bitso Partners With Felix Pago to Offer Whatsapp-Based Remittance Services Between Mexico and US

Bitso Partners With Felix Pago to Offer Whatsapp-Based Remittance Services Between Mexico and USBitso, a Latam-focused cryptocurrency exchange, has partnered with chat-based payments provider Felix Pagos in order to offer Whatsapp-integrated remittances. The objective of this partnership is to put nearly instant chat-based remittances in the hands of Mexican and US users that might be intimidated by crypto tech otherwise. Bitso to Power Felix Pagos Whatsapp-Integrated Remittances Remittances […]

BTC price chart seen mirroring US spot Bitcoin ETF launch pattern

WhatsApp crash: Are decentralized blockchain messengers a real alternative?

Centralized communication apps share one crucial feature: They crash often. Cointelegraph investigates to see if decentralization can offer a solution.

Since the introduction of ICQ — the progenitor of online chat applications — the expectation from instant messaging (IM) services has never changed. Users simply want them to work, which apparently turned into a tall order, given the frequent downtimes most popular chat apps experience nowadays. 

Launched the same year as Bitcoin (BTC), WhatsApp is one of the most widely used chat apps on the planet. Owned by Meta (the stable of which also boasts Instagram and Facebook), WhatsApp stands as the epitome of centralized services. That’s why when the service goes down, it has a much broader impact than just leaving over two billion monthly users scratching their heads and complaining on Twitter.

WhatsApp embodies the qualities of a centralized mindset perfectly: It has mainstream reach, an industry giant backs it and despite nearly one-third of the planet using it, people have absolutely no say over the final product.

Why do centralized chat apps go down?

When a product is controlled and managed by a central entity, it tends to follow certain processes during its lifecycle. Someone has to shoulder full responsibility for the various aspects of the centralized product. 

The massive scale of the product turns even tiny updates into a chaos of human errors, database issues and not having enough time to test the version before pushing out the update to meet stakeholder expectations. Coupled with the numerous cyber attacks on the infrastructure itself, the more the service is centralized and managed by a single entity, the more the “usual suspects of failure” fill the room.

Can decentralized services fix downtimes?

Communication-focused decentralized apps (DApps), on the other hand, provide anti-fragile systems, co-founder and CEO of Web3 service provider Heirloom Nick Dazè told Cointelegraph. He said that decentralized messengers get stronger with every user onboarded because they essentially function as “nodes” that keep the system functioning properly. 

“The key difference is that there is not one single point of failure,” Dazè stated, likening it to a balloon that is compressed on one part, which becomes geometrically smaller while still containing the air from the compressed section: “All of the air still exists. It is just pushed to a different section of the balloon.”

Recent: The state of crypto in Southern Europe: Malta leads the way

Of course, decentralized apps come with their own set of challenges, and one of them is scaling. DApps can’t compete with centralized services without being able to take on a billion-level user base, but Dazè believes DApps can overcome scaling issues by answering two questions: “Where does all of this data ‘live?’” and “How do we reduce network spam?”

Addressing the first issue, Dazè sees public key-based addressing as a decent solution, “As it serves as a limiting function on the amount of data necessary to handle.” Regarding the second issue, Dazè said that disincentives for spam must be created, accompanied by Captcha servers.

Redundancy is the name of the game

Cointelegraph also reached out to Chris McCabe, the co-founder of the Oxen Project — known for its decentralized IM app Session. When asked how decentralized IM apps handle crashes and downtimes, McCabe pointed to redundancy: 

“Decentralized networks have a lot of redundancy built in. If one server goes down, another one is there to take its place.” 

He said the Oxen Service Node Network, a set of incentivized nodes serving as the infrastructure of Oxen and its offerings, has over 1,600 nodes operated by hundreds of people worldwide.

“It would take a catastrophic event to take the network down,” McCabe claimed, adding that the network is equipped to continue as usual despite experiencing major events from time to time.

“In the past, we saw one-fifth of nodes go offline suddenly, but Session continued sending messages as normal. The network self-heals, and it hasn’t had a total freeze of communication as we have seen with centralized networks.”

Session can currently handle about five million users — a tiny portion of WhatsApp’s user base. However, McCabe said the team will continue to release updates for a more extensive decentralized storage network and higher network bandwidth.

The Oxen co-founder admitted that whether a decentralized network could handle the traffic that WhatsApp or Messenger face daily has yet to be proven. However, he is hopeful that Session could be the first app to test that theory.

“Session is gaining popularity not only because it hasn’t gone down,” he summarized, adding, “But also because people are sick and tired of having their data systematically collected, analyzed and weaponized against them.” 

Unmanipulated, unreadable and untraceable

The decentralized ecosystem offers a wide range of projects and apps with different priorities. One such is TransferChain, a peer-to-peer messaging app that focuses on privacy. Tuna Özen, the co-founder of TransferChain, told Cointelegraph that while the scalability aspect in decentralization is a gray area, being scalable or non-scalable is the result of design decisions. 

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“The main misconception that drives products to be non-scalable is assuming that any blockchain design can meet all needs,” Özen said. He suggested that multiple variables including block volume, block generation rate, consensus, selection algorithm, token integration, network cost and benefit structure and network participation structure should be taken into account:

“Just as it is reasonable to expect a track-proven race car built purely for speed to deliver the same performance in off-road conditions, it is just as reasonable to expect a blockchain approach that is not specifically designed for products and services to be scalable.”

Tuna Özen and his team describe TransferChain as a cloud platform powered by a decentralized decision-making mechanism on a distributed ledger. The app differs from its centralized counterparts with where and how the communication data is saved as well as the transparent storage of the process — which is unmanipulated, unreadable and untraceable according to Özen.

Although decentralized services offer more resilient infrastructures, they still have a long way to go to catch up with their centralized counterparts in terms of user base and mainstream adoption. Another thing to remember is that as DApps get more popular, they will probably need to face more regulatory scrutiny and governments worldwide would definitely have trouble with this new form of communication — given they only recently started to get a grasp of the new form of money.

BTC price chart seen mirroring US spot Bitcoin ETF launch pattern

WhatsApp down again? Google Trends spike after the outage

As WhatsApp goes down once again, there are a number of alternative platforms that are popular alternatives in the cryptocurrency space.

Some two billion WhatsApp users were left without service on Oct. 25 as the biggest messaging application worldwide went offline. Meta, the owner of Facebook and WhatsApp, is yet to clarify what led to the outage.

Users took to social media platforms like Twitter to share hilarious memes about the outage, with many flocking to alternative social media platforms to find out if they were alone in their lack of service. A similar situation took place in October 2021, with Facebook, Instagram and WhatsApp going down for more than 24 hours due to a “server configuration change.”

This time around, the outage was fairly short-lived, with WhatsApp restoring messaging services within a few hours of the initial outage. Nevertheless, questions about alternative messaging applications came to the fore once again.

Google Trends data highlights the surge in searches relating to WhatsApp around the globe on Oct. 25 as users tried to find out what had happened to the world’s most popular messaging app. Singapore, United Arab Emirates, Italy, Netherlands, Pakistan and South Africa were among the countries with the highest number of WhatsApp-related queries following the blackout.

The cryptocurrency community has long held privacy and encryption in high regard, and as such, a number of WhatsApp competitors have been endorsed as growing alternatives. 

Telegram has grown its user base steadily over the past few years, with founder and CEO Pavel Durov pinning the platform’s user base at 700 million users in October 2022. Telegram allows users to send end-to-end encrypted messages, photos and videos, share files, and create large groups or channels of up to 200,000 people for broadcasting purposes.

Related: This is what your email could look like in Web3

Signal commands a user base of some 40 million people around the world, and its privacy features are touted as industry-leading. Its open-source, end-to-end encryption means that Signal and third parties cannot read or listen to a user's messages or conversations.

Discord is a growing player in the instant messaging app space, already popular among gamers as a major voice-over-IP service. The platform is touted to serve over 140 million users that make use of its voice and video calls, text messaging, media and file sharing capabilities and server hosting.

Line is another alternative messaging service used by some 178 million users across the East Asia region. It integrates text messaging, voice and video calls with a bouquet of services, including a wallet app, gaming and music streaming services.

A decentralized alternative that bypasses the need for central servers or services is also an option. Keet, developed by Bitfinex and Tether-backed development firm Holepunch, offers a desktop-based peer-to-peer messaging application for text and video calling. 

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WhatsApp Rolls Out Crypto Payments Pilot Program in the US

One of the world’s largest mobile messaging services is launching a new feature enabling its users to send and receive crypto assets. American platform WhatsApp just announced a new pilot program that integrates Novi, the digital wallet developed by leading social media platform Facebook, now Meta. US-based WhatsApp users will now be able to exchange […]

The post WhatsApp Rolls Out Crypto Payments Pilot Program in the US appeared first on The Daily Hodl.

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Novi Launches Whatsapp Integration Pilot Program for Selected Users in the U.S.

Novi Launches Whatsapp Integration Pilot Program for Selected Users in the U.S.Novi, the remittance and payments initiative of Meta (formerly Facebook), has launched a Whatsapp pilot test for customers in the U.S. This means that a small number of Whatsapp users will be able to send and receive payments, as well as purchase digital dollars directly from the interface of the messaging service. This is an […]

BTC price chart seen mirroring US spot Bitcoin ETF launch pattern

Bitcoin moves past $49K as Facebook, Instagram, and WhatsApp go down

During the outage, many Crypto Twitter users called for the need for a decentralized social network built on blockchain.

Major social media and communication platforms Facebook, Instagram, and WhatsApp went offline Monday as the price of Bitcoin and other cryptocurrencies surged.

As data from Cointelegraph Markets Pro shows, the Bitcoin (BTC) price moved above $49,000 after falling to a daily low of $47,166, an increase of roughly 4.5% in less than two hours. Similarly, the price of Ether (ETH) rose 3.5% over the same period to reach $3,411 at the time of publication.

The sudden price volatility comes as major social media platform Facebook, photo and video sharing app Instagram, and messenger app WhatsApp — both owned by Facebook — went down at approximately 11:16 AM EST on Oct. 4. According to Facebook's communications team, who communicated through Twitter, the company was “working to get things back to normal as quickly as possible.”

At roughly the same time on March 13, 2019, all three platforms reported a major outage that asted more than 24 hours. At the time, Facebook attributed the problems to a “server configuration change.”

The interruptions may impact community engagement around crypto and blockchain projects, but Discord, Twitter, YouTube, and many other platforms are still functioning normally. Many Crypto Twitter users are already using the incident to highlight the need for a decentralized social network built on blockchain.

“If they built Facebook on a blockchain, it would never go down,” said Allen Farrington, who regularly writes about Bitcoin and cryptocurrencies on his Medium blog.

The outage also follows former Facebook employee Frances Haugen turning over to journalists and others thousands of documents that imply that the company was not doing what it claimed in regards to removing hate speech and posts encouraging violence from the platform, among other things. Facebook’s stock fell by more than 5% on Monday to reach $324.90 at the time of publication.

Related: How the Bitcoin model can solve the social media dilemma

Twitter is already working on its own decentralized social media initiative. CEO Jack Dorsey first announced in December 2019 that the platform would be funding a dedicated team to develop a decentralized standard for social media, and recently hired a crypto developer to lead the group. At the time, Dorsey said the aim was to shift away from content hosting and removal to recommendation algorithms directing users’ attention and avoid content that sparks controversy and outrage rather than healthy and informative conversations.

This story is developing and may be updated.

BTC price chart seen mirroring US spot Bitcoin ETF launch pattern

US Government Seizes Trezor Wallet With $6.3 Million in Bitcoin From Gift Card Fraud Case

US Government Seizes Trezor Wallet With .3 Million in Bitcoin From Gift Card Fraud CaseOn September 22, 2021, a U.S. district judge from San Antonio, Texas, granted a summary judgment on the civil forfeiture of 147 bitcoin worth $6.3 million held on a Trezor hardware wallet. According to the court filing, the crypto assets stemmed from a Target gift card fraud incident that started in 2016. Gift Card Fraud […]

BTC price chart seen mirroring US spot Bitcoin ETF launch pattern