Just add steam and coal
In the past weeks we have been busy implementing further Ethereum smart contract support, the next logical step after creating support for our XHY token in line with the ERC20 standard on the Ethereum blockchain. Our user interface presentation code was split from our functional code and our stylesheets are being reworked. Besides this work on our 'main engine' we have been busy implementing an innovative system to exchange privacy sensitive data securely, in a decentralised way. The individual parts of this system are well-tested internet protocols like RSA encoding, onion routing and Bittorrent protocols, but the way we want to harness them together allowing for decentralised operations is unique to our project.
New alpha: Teeny Tiny Token
We have just finished the next alpha wallet and it is ready for testing. For this version we focused on making it work faster, more user friendly and added the XHY hybrid asset token for testing the ERC20 token support. As it is part of the Ethereum ecosystem you can see that the token is called ETH.XHY in our wallet. We'd like you to try out this version. Let us know if something is not working as it should, or tell us if you have ideas to make things better. The next alpha will support many more tokens and a way to manage them, while for now this one lists XHY for starters. You can find public alpha version 0.22 "teeny tiny token" available at: https://wallet.coinstorm.net
Centralized exchanges can and will be hacked. The most recent example of this was BTER, with its loss of millions of NXT coins, and before that Vircurex, with a large loss of Litecoins. Even though the thief that stole from BTER has returned the greater portion of stolen value, yet another example of such a hack does not comfort the users of these exchanges.
For the project I run, this poses a problem. The hybrid asset STORMWIND was initially designed to counter pump-and-dump schemes in the market. Where do these mostly occur? On the centralized exchanges. It is becoming clear that to change this situation, we must decentralize an important aspect of the growing cryptosphere: inter-blockchain value exchange.
Even though the STORMWIND portfolio is spread over 7 different exchanges, and value is diversified between many different cryptocurrencies, the losses incurred by each exchange hack make the project more risky, and less prone to be sustainable. Every unanticipated bite out of the trading capital increases the risk for asset holders. The hack at BTER, if left unresolved, could have resulted in a 5% loss of STORMWIND capital. This means at least several months of dividends in value - an unacceptable risk.
This brings me to the inevitable conclusion that with such untrustworthy security among the exchanges STORMWIND in its current form cannot sustain itself. It must evolve, and the very notion of a hybrid asset should be decentralized to avoid these risks in the future. Technologies such as CounterParty, NXT, Ethereum, Codius, Open Transactions, etcetera, present us with a large toolchain to integrate cryptocurrency technologies and create a coherent network by connecting them all together.
To me it seems we need to take this one step further to make a completely interconnected crypto-economy a reality. In the past weeks I have been in talks with several programmers and cryptographers about the possibility to decentralize the concept of a hybrid asset. Cryptocurrencies, Blockchain based assets, Multigateways, Smart Contracts, and Sandboxed Oracles need to evolve to become a decentralized meta-network.
Evolving all these technologies to become integrated would make it possible to actually turn the idea of an network of coins into reality. For now, however, let's start closer to home, and make sure hybrid assets can traverse blockchains. This can bootstrap an Internet of Coins, and is a worthwhile first step.