As the holidays approach, we take the opportunity to express our gratitude to you, our community, for your support and commitment to the development of the Equibit networkand Equibit Group. Building a solution that will change how financial institutions perform business, and further democratize the capital markets, is not something done without careful strategy and execution and so we thank you for your passion and patience for our project.
2017 has been significant for the Equibit Group, and each month we strive to push the ball forward on our development roadmap, growing our network, and defining what it means to decentralize securities for the company, individual investors and financial institutions.
Equibit Group Strategy
This fall our primary focus has been on development, working towards the launch of the Equibit Portfolio and Equibit Core software, with the near completion of the Equibit blockchain and capability for atomic swaps. As previously mentioned, building out our community remains core to our objective, and miners have been central to this. Miner support has increased significantly, and we now look to build an Equibit Group mining pool to support smaller players looking to mine EQB.
We encourage interested EQB miners to contact our Chief Blockchain Officer, Nathan Wosnack at firstname.lastname@example.org.
November’s development pushed Equibit Portfolio forward, enabling many of its core functions. With Equibit Portfolio, companies are able to issue securities while investors can easily trade peer-to-peer, instantly transferring title of securities without need for intermediaries, on the Equibit blockchain.
Our development team has enabled the sending of Bitcoin (BTC) and recycling of Equibits (EQB), a sequence that facilitates use of BTC payment within the platform and EQB’s function as a security vehicle. We’ve also initiated the authorization of issuances, as well as the ability to send and cancel authorized issuances. Users can now view a list of transactions, including links to blockchain transaction data, create buy / sell orders, view order book and create buy / sell offers, and view all orders and offers.
Following the model that BitPay employs, an adaptive block size will be implemented on the Equibit blockchain. Rather than enforce a fixed limit on block size, the system will constantly recalculate the maximum block size that it will allow. With an adaptive rule, the network is able to flex to meet the needs of users, increasing block size while staying within scaling constraints. The size of each block will be determined by which is larger: the three month trailing median of existing blocks or the lower bound of 1mb.
Proof of concept has been created for Equibit atomic swaps. Allowing for true peer-to-peer exchanges, atomic swaps facilitate cross-chain trading so that users can exchange one cryptocurrency for another without the need for assistance or trust from a third party. A demo of this running on the Bitcoin and Equibit testnet will be announced in the near future and we hope to be the first wallet developer to demontrate an atomic swap in a graphical user interface and without the two users having any communications prior to executing the swap.
The Equibit passport system conitinues to be improved. The technique we developed for establishing trusted address could easily work with other blockchains. Establishing trust between two addresses is performed by doing two transactions, first we use a two-of-two multi-signature address to provide the offer of trust - followed by a one-of-two multisignature address for either party to eliminate the trust.
We've also grown our development team in November with the addition of Bradley, an expert in cloud infrastructure implementation.
The Regulatory Environment
Much has transpired over the course of November, with a rapidly changing cryptocurrency regulation landscape.
In Russia, German Gref, head of the Russian state bank, called for Bitcoin not to be banned after Russia’s communications minister, Nikolay Nikiforov, stated that Bitcoin trading would never be legalized in the country. Gref eschewed state protectionism saying that “virtual currencies are a natural outcome of blockchain technology.”
In October Russia had announced that it would issue its own cryptocurrency and while not mined, it would be tradeable for Russian Rubles.
On November 22nd the Malaysian central bank governor, Tan Sri Muhammad Ibrahim, stated that it will be placing Bitcoiners under existing anti money-laundering (AML) laws “to prevent the abuse of the system for criminal and unlawful activities and ensuring the stability and integrity of the financial system.”
Looking to attract technological innovation and an influx of foreign investment, the President of Belarus, Alexander Lukashenko, is expected to sign a decree legalizing cryptocurrencies.
Amidst a flurry of uncertainty in the US, notable crypto names are recommending that the ICO community needs to embrace self-regulation in order to avoid issues with the SEC.
This past weekend the British Treasury announced plans to regulate Bitcoin, forcing all traders to disclose their identities, amid concerns about money laundering and tax evasion. The regulation intends to apply anti-money laundering and counter-terrorism financial legislation to cryptocurrencies.
Also over the weekend, the vice governor of The People's Bank of China, Pan Gongsheng, stated that closing digital currency exchanges in China was the right move, predicting that Bitcoin will die.
The State of Bitcoin
November was a watershed month for Bitcoin, from the SegWit2x scaling movement losing the needed consensus to hard fork, to a small and determined group of developers who unsuccessfully tried to push the Bitcoin blockchain split through, to finally breaking through the much anticipated $10,000 mark.
Leading the Industry
NCFA Live, November 16th
Hosted at Gowling WLG’s Toronto office, the National Crowdfunding Association of Canada held a panel on ICOs and the future of blockchain, moderated by CEO Chris Horlacher. The panel featured Gowling WLG’s Usman Sheikh, Impak Finance’s Paul Allard, Pegasus Fintech’s David Lucatch, AiBB’s Yvonne Yuan and Blocksale’s Darren Franceschini.
AI World Forum, November 27th
Alongside fellow members of the crypto community CEO Chris Horlacher was featured on a panel discussing ICOs at the AI World Forum in Toronto; Christine Duhaime from Duhaime Law, Hilary Carter from the Blockchain Research Institute, and moderator Alexandra Posadzki from the Globe and Mail. Chris was quoted as explaining that “ICO investors should look for a technical focused white paper, not a marketing press release.”
Just PublishedThree new blog posts were published in November, all looking at the strategic differentiators that Equibit brings to the capital markets - we also had an op-ed published:
Top 10 Reasons to Mine EQB
“A token that ushers the world of financing into the future, EQB, or ‘Equibits,’ is the native access token for Equibit, a platform that allows company issuers and investors to interact without the costly intervention of third parties like stock exchanges, brokers, and transfer agents. Through the Equibit platform, EQB provides access to a new and innovative capital markets experience.
Blockchain Meets the Stock Market
The stock market has been in need of innovative disruption for many years and blockchain technology is the answer; it’s time to move away from a centralized system. This infographic, produced in collaboration with Visual Capitalist, presents a high level overview of what blockchain will fo for the capital markets.
Why a Blockchain-Based Issuance is Right For You
While appealing in design, ICOs have become less attractive as a fundraising model because of the murky relationship with regulators. Equibit Group, strategically placed at the intersection of the capital markets and token offerings, provides the benefits of blockchain technology, but the security of an issuance that can be made to comply with any set of regulations or conditions.
Equibit Group Chooses SHA 3
Finally, our October blog post, "Cryptocurrency Hash Functions - Equibit Group Chose SHA-3," was published on Bitsonline as an op-ed.
Happy Holidays from the Equibit Group team.