Tokenizing assets on Bitcoin sidechain

Blockstream just announced a feature that allows tokenized assets issuance on a Bitcoin sidechain. According to the release, the Issued Assets allows users to:

  • Issue a new asset in any quantity
  • Send a single transaction with several assets
  • Transact privately using Confidential Transactions, with amounts and asset type known only to the parties of the transaction
  • Destroy quantities of an asset

Tokenized securities have generated quite a bit of interests among traditional investors observing the cryptocurrency space. While Wall Street sees this as a gateway to introduce more digitalization to traditional securities, some Bitcoiners regard it as a distraction from the original goal of creating a peer-to-peer financial system. Do tokenized assets on a Bitcoin sidechain represent the best of the both worlds? Or a compromise to attract more "institutional interests"?

Blockstream announces product that lets users issue assets on sidechain

Commentary on why using a sidechain may work better than Color Coin

Mechanism of securing the sidechain

Reddit discussion thread


Technical Updates

Bitmain consolidates hashing power over mining pools

"Bitmain's Bitcoin mining pools centralization is now a mere 8% to the critical level of 50%, which is a serious concern because it potentially threatens Bitcoin’s immutability. It could give one entity a certain degree of control over the whole network such as blocking or reversing transactions. Bitmain doesn’t disclose what percentage of hashrate out of its pools it physically operates but it controls the block templates for the entire pool nonetheless."

Commentary on IOTA under adversarial model

New release: 1.1.2
(Zcash Blog, by Simon Liu)

"Zcash 1.1.2 has been released on the heels of Zcon0. This Overwinter-compatible release focused on implementing internal changes necessary for Sapling in tandem with the librustzcash and sapling-crypto libraries."

Announcing-Incentivized Testnet game
(Cosmos, by Chjango Unchained)

"The goal of the testnet game just weeks before launch is to simulate a mainnet environment to stress-test all the features. Since the Cosmos technology stack is near feature-completeness, the need to stress-test the simulated environment, the mechanics of the Cosmos Hub, and each and every one of the features promised in the deliverable of the MVP is vital to the success of the Cosmos Network before its mainnet comes online."

Decred: Where did it all begin?
(Decred Community Blog)

"The miners might have one idea, while development teams and exchanges have another. But because Bitcoin has no decentralized governance system, there is no way everyone can agree on a formal way to progress the blockchain. Perhaps the most important thing Jake highlighted was that the actual holders and users of Bitcoin have no say in any decisions about the future of Bitcoin."

For victims of smart home abuse, there's no easy out
(Engadget, by Nicole Lee)

"Engadget has reached out to Google, Amazon and various smart home manufacturers about any efforts to curb abuse and have not heard back at the time of publication. The only company to get back to us was Simplisafe, which specializes in home security. It said that in a situation where an abusive ex is misusing the technology, the remaining home owner could call in with a predetermined safe word in order to cancel service or reset PINs and passwords."

News & Commentary

Coinbase Custody is officially open for business
(Coinbase Blog, by Sam McIngvale)

"Coinbase Custody’s unique features include:

  • On-chain segregation of crypto assets
  • Split, offline private keys that require a quorum of geographically distributed agents to use cryptographic hardware to sign transactions
  • Multiple layers of security
  • Robust cold storage auditing and reporting"

Mythbusting: why Bitcoin can never go to zero
(CoinTelegraph, by Darryn Pollock)

"Many will compare Bitcoin to a company or stock, which can go to zero, as a reason not to invest in it. However, Bitcoin is decentralized and autonomous. There is not one man, group or board of directors that can run it into the ground."

ECB faces ghost of rate hikes poast a decade after 2008 misstep
(Bloomberg, by Alessandro Speciale)

"Draghi’s guidance was cheered by markets as prudent when it was unveiled last month. Economists and investors who had expected a rate hike in the middle of 2019 pushed out their forecasts to late in the year. But a few see a bigger threat -- that the ECB becomes trapped in a zero-interest-rate world as the economic cycle turns down."


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