Crypto bridge related open ledger

On their own, most stablecoins do not fully bridge the gap between crypto and fiat. Even if they do add some stability to the ecosystem, they are simply not designed to address business processes outside the cryptosphere. It is not yet another webinar: participants will be encouraged to take part, come with prepared questions and voice opinions.

Expect live demos and tutorials, stories from the battle field and hopefully some heated discussions. All rights reserved. For a list of Hyperledger Foundation trademarks, please see our Trademark Usage page. Linux is a registered trademark of Linus Torvalds. In each area, we focus on legal issues raised by blockchain technology, as opposed to how blockchain technology can be used to improve compliance with legal requirements.

These features in turn have significant legal implications, for instance with regard to the difficulty of reversing past transactions. This paper does not explore how blockchain transactions relate to real-world assets. While early applications tracked on-chain assets i. If the hash value is unchanged, observers can be confident that the input data has not been tampered with. Item 7 contains Data 7 and the hash of Item 6, and so on, back to the start of the chain.

Figure 2. The data of Item 7 cannot be changed without changing its hash value. Any attempt to change the values of Item 7 and re-hash it would break the link between the items, since the hash of Item 7 is recorded in Item 8. Provided an external observer can view the hash pointers, they can spot any tampering.

So, if a fraudulent change were to be made in the data of Item 7, all subsequent blocks in the chain would have to be re-hashed to rebuild the chain. The block body contains the transactions that the block records. Figure 3. Either the owner of the corresponding private key must have signed the data, or the key has been compromised by theft or sharing.

Transaction records are signed before being included in blocks. The hash pointers establish the integrity of the data within each block, as well as the order of the blocks, thereby creating a tamper-evident data structure. For example, Bitcoin generates hash pointers using Secure Hash Algorithm SHA , a well-known hash function that generates a bit or byte hash.

Quantum computing may present a challenge to encryption in the long term. This can be split into three sub-questions: i who stores a copy of the current version of the blockchain; ii who can add new blocks to it, and iii who controls how the system works? Further, users should be confident that nobody can transfer their assets without access to their private key.

However, using a blockchain does not in itself prevent tampering by whoever controls the ledger. Thus, in a system where visibility and control over the ledger are centralised in the hands of a single party, users need to trust this party not to tamper with the ledger. Section 3. Finally, Section 3. To participate, they run open source code on their local hardware. Anybody can become a node by downloading and running the relevant software and storing the blockchain archive.

Table 2. First, it protects data from tampering by any single centralised party. Finally, a DL is resilient, since there is no single point of failure to target with a denial of service DoS attack. Therefore, these distributed consensus protocols cannot agree on new blocks one block at a time, as in conventional consensus protocols.

If starting nodes and mining new blocks were costless, an attacker could flood the system with new nodes and newly mined blocks, in what is known as a Sybil attack. All miners expend energy trying to solve the puzzle, but only one of the miners will successfully create a new block. This is similar to the yearly energy expenditure of c. However, in practice, many Bitcoin miners work together as part of large, centrally operated mining pools.

As a result, they feature distributed storage and adding of new blocks managed by complicated consensus protocols and resource-intensive mining to ensure that no single party controls the addition of new blocks. Having fewer miners also allows less costly conventional one-block-at-a-time consensus protocols to be used.

Such systems are closed or permissioned at the level of nodes or miners, since storage and mining is limited to certain parties. For example, users currently trust Twitter not to change their past tweets. If tweets were stored on a blockchain, they would be tamper-evident. This gives it a strong incentive to refrain from doing so.

Users may similarly prove willing to trust reputable operators of closed, permissioned blockchain platforms. Instead, it could be stored centrally with a government agency, such as the land registry, acting as a TTP.

Any tampering by the record-keeper would then be evident through comparison with the independently-stored copies. Users would still need to trust the TTP and independent archival nodes not to collude against their interests. Moreover, the nodes may be able to process transactions more quickly, since transactions can be verified and blocks mined by a small number of trusted nodes, each with high processing power, as opposed to by thousands of distributed nodes.

However, the TTP or trusted nodes will need to invest in traditional security, to protect against hackers gaining access to the ledger or DoS attacks from taking down nodes. This raises issues of blockchain governance: who can change the platform and under what circumstances should past entries in the ledger be changed.

In this section, we first consider protocol changes, before turning to the reversibility of past transactions, and the role of service providers. In the current cryptocurrency context, these four groups form a community around a shared interest in maintaining, and increasing, the value of the coin.

Each group can use informal governance mechanisms to express its preferences. Examples include discussions of technical improvement proposals, [] user-wide votes on protocol changes, [] miner-implemented soft forks , [] and ultimately, hard forks that lead to competing, alternative cryptocurrencies.

Ethereum code is similarly developed through an open-source process, with the Ethereum Foundation having ultimate responsibility for code changes. As a result, the platform requires users to place some level of trust in the developers. The deliberate creation of a new version of software that is incompatible with the existing software, for instance, because it has a different consensus protocol, is called a hard fork.

If they do, this creates two separate blockchains that track two different cryptocurrencies. As a result, they will track two different cryptocurrencies. The value of each currency resulting from a fork, is determined by supply and demand on currency exchanges.

Governance issues should be more straightforward where fewer parties are involved. As discussed above, the blockchain aims to create a persistent, tamper-evident record of relevant transactions. Although this goes against the general aim of creating a persistent record, the nodes may agree that it is appropriate in exceptional circumstances.

On an open, distributed platform, establishing a hard fork is costly, both in terms of arranging cooperation between nodes and re-hashing previous blocks where required. The TTP or small group of trusted nodes can agree to correct the ledger, which would also be less costly if the consensus protocol does not require PoW. Thus, a party seeking to reverse a past transaction would only need to submit a request to, and obtain approval of, the TTP or group of trusted nodes.

As a result, centralised platforms can support reversibility better. As a result, this is not an option where one of the parties contests the reversal. Companies are also exploring the possibility of editable blockchains, changing the way hash pointers link blocks so that a small number of authorised parties can change past blocks. As noted above, many users rely on intermediaries, such as online—or hot —wallets, as an interface to a blockchain system.

A provider managing a single node as part of a large, federated network of nodes raises different considerations to a service provider that hosts all the nodes of a network. There are strong incentives for service providers to ensure the integrity of their platforms, as their reputation is crucial to the longevity of their business. Providers may also be able to use advances in technical mechanisms, such as trusted execution environments secure enclaves that aim to provide a technical guarantee that specific code was executed.

Visibility and Identity. This is the basis for authentication, proving that you are who you say you are and allowing an electronic identity to be associated with a validated person and their real-world identity. Part of the establishment of an electronic identity is to associate electronic credentials such as a secret password or biometrics with the validated person. There are also other online services to help users mask their transactions, known as bitcoin mixing or laundry. This will likely depend on the functionality they seek to offer and on regulatory requirements.

For instance, a number of organisations are promoting the use of blockchain to allow individuals to manage their identity. Smart Contracts. Other applications might require more complicated interactions, such as a series of related, sequential or conditional transactions. Their progress could be documented on a blockchain, to record that the goods have arrived at and departed from various intermediate locations.

Instead, the term essentially refers to a computer program that automatically brings about some specified action, such as carrying out transfers of, or executing other actions relating to, digital assets according to a set of pre-specified rules.

The challenges involved in correctly capturing these semantics as smart contracts include validation and verification. The more a blockchain platform supports smart contracts, the more scope users have to use the platform for different purposes. Developers who want to create a simple blockchain for a predetermined purpose may opt to offer limited support for smart contracts, or only support smart contracts made of predefined components.

In Bitcoin, the functionality relating to transactions is brought about through a series of scripts or programs. To illustrate this point, we look at various ways in which blockchain technology is being used to create structures that resemble existing legal concepts, including contracts, companies, and securities.

Below, we consider how existing law will apply to these new blockchain-based structures. We will consider, in turn, issues arising under i contract law, ii data protection law, iii securities law, iv property law, v intellectual property and finally vi company law.

For each area, we illustrate how the legal analysis is affected by the way in which blockchain technology is deployed in a specific use case. In reality, the creator of a smart contract will ordinarily need to explain his offer to human counter-parties in human-intelligible language. This explanation can form the basis of the agreement between the parties and thereby determine the terms of the contract.

In doing so, A will communicate the details of her offer. On the one hand, standard contracts commonly include provisions that exclude all representations outside of the contract terms and provide a hierarchy between various legal documents. On the other hand, simply publishing machine-readable code may not provide sufficient notice of contractual terms to non-expert counter-parties. Further, the code could be binding if the counter-party also uses a smart contract to express their assent, i.

The two smart contracts will find agreement only if there is a set of computer-readable terms that are acceptable to both parties. However, as noted above, the legal contract between the parties is likely to include obligations beyond the code itself, based on other communications. As a result, they are unable to capture the real-world complexity of all but the simplest transactions.

The ledger then provides a reliable record of the transactions and contracts executed. Thus, while smart contracts might simplify execution, they will not prevent contractual disputes. The offering party can replace the smart contract for future transactions, but cannot edit the existing smart contract or easily reverse its effects. However, since a legal contract is not self-executing, a party can withhold performance and renegotiate terms.

A judge may then be able to correct obvious mistakes or incompleteness in contract language through interpretation, by assessing the intent of the parties. Since a smart contract is self-executing, its automated performance is written into the blockchain. For instance, enforcement of the contract could, in theory, be structured to allow for arbitration by a third-party adjudicator with their own private key. It is not clear at present who these adjudicators would be or what procedural and substantive rules they would apply in resolving disputes.

As a result, with a centralised platform, it should be easier to arrange a corrective fork. The TTP or small group of trusted nodes can agree to correct the ledger. In a worst-case scenario, revealing information through a smart contract could lead to inadvertent loss of trade secret protection or to a breach of confidentiality.

This is less of an issue on centralised platforms, where the TTP or trusted nodes can control visibility of the blockchain. For instance, it could be argued that the nodes and miners who collectively support the Bitcoin network offer a payment service to EU data subjects.

It refers to any operation or set of operations performed on personal data. It covers any information that relates to an identifiable person, i. For specific applications, for example a land registry blockchain, titles to property may be transferred from one named individual to another. In this case, the addresses might refer only to the sending and receiving banks in question and need not relate to any identifiable person. For instance, in Bitcoin, the amount of BTC transferred does not necessarily relate to an identifiable person, [] nor would payment data for an overall end-of-day settlement between banks.

For example, a group of retail banks could set up a blockchain platform to share KYC Know Your Customer information on their customers with each other. In that case, the object of transactions would be information about natural persons and could be written into the blockchain. The controller is the natural or legal person who determines the purposes and means of processing personal data. On the one hand, at the macro-level, looking at the blockchain infrastructure as a whole, the purpose of processing personal data is to provide the associated service.

For instance, with regard to Bitcoin, the purpose of processing transaction data is to provide a peer-to-peer system of electronic cash. They would also determine the means of processing, by deciding which software and hardware to use. The user also determines the means , namely: to use that blockchain platform to execute their transaction. From this perspective, nodes and miners simply facilitate access to a blockchain database, while the users determine which data are stored there.

Since data protection law is concerned with the processing of specific items of personal data, we consider the micro-level perspective more appropriate. To illustrate this point, we consider three different use cases below.

For instance, with a land registry, the government agency setting up the platform could either develop the underlying software in-house, or buy in software from a third-party developer. The agency could then run a single node and miner, acting as a TTP.

Similarly, at the macro-level, the agency would decide to process personal data on a blockchain platform for the purpose of providing a registry of titles to land. Seen from the macro-level, one could argue that the land registry should be considered a controller. Users also arguably determine the means of processing by choosing the blockchain-based land registry as the medium to execute their transfers.

Seen from this micro-level perspective, the user should arguably be considered the data controller, with the agency acting only as a processor on their instructions. For instance, it might use a Blockchain-as-a-Service BaaS offering, whereby a third party provides the underlying supporting infrastructure. In such cases, the BaaS-provider could qualify as a sub-processor when processing personal data for the land registry.

For example, even if we categorise the government agency running the blockchain land registry platform as a mere processor for the purpose of individual transactions, it may nevertheless be a controller for other purposes such as assessment and collection of taxes relating to land transactions. For instance, a group of retail banks may set up a blockchain to share information on their customers for KYC purposes.

The platform is closed only the founding banks, or others they authorise, can use it and private only the participating banks can view the blockchain database. Thus, in specifying the software, the banks would determine which data to store on the blockchain and how it is processed through the consensus protocol.

They could also dedicate resources to running the nodes. The banks also arguably determine the purpose of processing, namely to share KYC information. Seen from this perspective, the banks could be characterised as controllers when setting up the platform and when acting as nodes and miners.

In this case, the personal data would be the object of the transactions namely: the customer records. Banks enter this information onto the platform when submitting transactions. In line with the above analysis, as users, each bank would arguably act as a controller with regard to the customer data it submits to the platform. Further, when processing the data as nodes and miners, the banks might be acting only as processors with regard to the customer data that other participating banks have submitted.

If they engage in further processing of the data for their own purposes, they would likely become controllers of that data. Open, Distributed Platform: Cryptocurrency. Given this, the miners and nodes arguably could be controllers.

Thus, with respect to each item of personal data, the sending user decides to submit it to the Bitcoin platform for their own purpose, namely to transfer a certain quantity of value to the recipient. In addition, they arguably determine the means of processing, by deciding to use Bitcoin for their transaction. Seen from this micro-level perspective, the users should be considered data controllers.

Nodes and miners may simply process this data on behalf of each user. For instance, with cloud services, a customer can often only use a commoditised cloud service without modification and may have no choice but to accept the standard contractual terms offered by a large cloud service provider if they wish to use a particular service. They should choose a cloud provider that guarantees compliance with the relevant requirements of data protection law.

EU data protection law does not apply to natural persons in the course of a purely personal or household activity. However, if a user makes payments outside of a personal or household activity, such as for commercial, political, or charitable purposes, the exemption may not apply. In such circumstances, users will typically be subject to the full responsibilities of a data controller, as set out in Section 6. Thus, if a node analyses the payments data in its local copy of the blockchain to glean commercial insights, it would become a controller in respect of any personal data involved.

Conclusions Regarding Data Controllers and Processors. Given that data protection law is concerned with the processing of specific items of personal data, the micro-level perspective is arguably a more appropriate starting place. Following this line of reasoning, users would be considered data controllers in respect of the personal data they submit to the blockchain platform, since they determine both purposes to execute the transaction and means in choosing the platform.

They delegate decisions on the technical and organisational details of the processing to the collective of developers, nodes, and miners. If nodes and miners merely process transaction data on behalf of users, they might merely be processors, rather than controllers.

In some cases, they may simply facilitate the processing of transactions on behalf of users, by passively running the relevant software. In this respect, they could be compared to providers of cloud computing services. Cloud providers offer Internet-based, flexible, location-independent access to computing resources, including processing capability and storage.

In that case, nodes and miners could be compared to SWIFT, a financial messaging service that facilitates international money transfers for financial institutions. However, the Article 29 Working Party determined that SWIFT should be considered a controller, since it acted with a significant level of autonomy in relation to the personal data it processed, including by developing, marketing, and changing the services it offered, deciding to establish a data centre in the US and to disclose data to the US Treasury.

Consequently, unless covered by the household exemption or another exemption , [] each user will need to be able to demonstrate one or more lawful grounds for processing the personal data they submit to the blockchain. For instance, in the above banking example, each bank will need to determine whether its existing grounds for processing customer data extend to processing by means of a private, permissioned blockchain.

As a result, they would not normally need to verify whether the controller has valid grounds for processing. Controller and Processor Obligations. Achieving this should generally be easier with closed, centralised platforms, since fewer parties are involved as nodes and miners, making it easier to coordinate compliance.

For instance, in the above banking example, the banks would need to establish their respective responsibilities by means of a contract. Similarly, the land registry would need to establish its legal responsibilities as a processor via contracts with the users of its platform. It would probably seek to do so by requiring users to agree to terms of service before accessing the platform. In theory, large numbers of users, nodes, and miners would need to enter into detailed contracts in order to establish their responsibilities.

In practice, the most feasible way to achieve this may be through standard-form terms and conditions to be agreed whenever a user, node, or miner first uses a platform.

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Ledger Live will let you know that you have successfully confirmed the address. Hit the copy button or highlight the address and copy it. This note is to help you identify the transaction later on if you want - it does not go on the blockchain.

This will give you some idea of when you should see the coins appear in your Ledger Wallet. However, we prefer the blockstream block explorer because it gives you helpful tips on how you can improve the privacy of your transactions in the future. You can view the above transaction on that explorer. As you can see, this transaction already has 29 confirmations, so these funds are certainly visible in our Ledger by now.

As you learn more about cryptocurrencies, you will begin to see the risks of leaving your coins on an exchange for long periods of time. Exchanges act a honey pot for hackers looking to acquire large amounts of Bitcoin or other crypto. Gox is probably the the most famous example of an exchange that lost nearly every Bitcoin on deposit.

Because of these risks, many hodlers opt for safer, more secure devices, such as hardware wallets, to hold their coins on. The most popular devices are the Ledger nano S and Ledger nano X which give users full custody of the private keys of the wallet. If you cannot see your coins at all after you have transferred them from Coinbase or anywhere for that matter , its probably because you sent them only moments ago.

When you sent your coins on Coinbase to your Ledger, you were actually telling Coinbase to broadcast a transaction on your behalf to all the nodes on the network. By default, Ledger Live sets the minimum number of confirmations to the amount of blocks that fit in 30 minutes. Now all you need to do is take your crypto security to the next level with Billfodl. The Billfodl is a way to backup your Ledger device so that you are protected from natural threats to your coins like fire and flood.

You can learn more about The Billfodl or you can add it to your cart by clicking the button below. Colin is a founder of Privacypros. In his spare time he's a PC gamer. How the Rainbow Bridge works. The bridge is accessible and easy to use. These costs and speeds will improve in the near future. Try it Today Try the Rainbow Bridge. Pulse , a stablecoin-denominated prediction markets platform powered by Flux Protocol Paras , an NFT trading platform for digital cards Ref.

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