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Why is Blockchain Down (Is Blockchain Banned?)

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Why is blockchain down? Why is blockchain down?Recently, the computing power of

Why is Blockchain Down (Is Blockchain Banned?)

Why is blockchain down? Why is blockchain down?

Recently, the computing power of the Bitcoin network has been continuously increasing. According to data from Coinmarketcap, the price of Bitcoin has dropped more than 20% in the past week. However, as the price of Bitcoin rebounds and the trading volume continues to rise, the price of Bitcoin is also continuously declining, even falling below $20,000. This is the most serious day after the price crash, as the network difficulty of Bitcoin has dropped from 1T to 1.5T, causing miners to have to shut down their machines. However, currently, Bitcoin mining still maintains a normal pace of work, and due to the long block time, it is unable to guarantee smooth block generation. Therefore, for some people, “I really don’t want this process to happen,” “There is your computer in my phone.” – China Daily, October 11, 2020 (Saturday). There have been two incidents related to Bitcoin this morning around 10 o’clock: one is the “black swan” event warned by the US regulatory agency, New York Department of Financial Services, and the US Federal Secret Service. The other is the Bitconnect cryptocurrency scam discovered by the Japanese Police Department through investigation. The plan is accused of illegal fundraising fraud. It also includes fraudulent investment activities implemented by people who are suspected of using a technique called Sybil attack to obtain digital assets. Since 2020, countries around the world have expressed strong protests against this issue. Although many countries are taking measures to protect users from the impact of this situation, there are still related security vulnerabilities and technical risks under the current economic downturn, and potential security risks are also faced.

In fact, since 2018, most exchanges worldwide have not been able to comply with existing laws and regulations, such as the banking system in the United States, these restrictions may mean that customers will directly place funds in the exchanges. In fact, in many cases, when it comes to exchanges, they usually require users to transfer to their accounts or they need to pay a fee of up to $100 to continue trading. However, the current situation is not so because people generally believe that Bitcoin and other decentralized tokens do not have the same value as traditional cryptocurrencies, but as a medium of exchange or store of value.

On the other hand, if there is not enough evidence to prove that blockchain can solve any significant social problems, it is likely to become one of the most challenging fields in the history of mankind—that is to say, the emergence of blockchain technology will bring a huge impact to the industry, especially in the next few quarters, the development speed of this technology far exceeds that of other emerging technology fields, which also indicates that the market is very fragile. “This is how blockchain works!” – Christine Karagiozi, former executive director of the Bank for International Settlements, said: “Like the Internet, blockchain is a distributed ledger database.

Is Blockchain Banned?

Editor’s Note: This article is from Plain Blockchain (ID: hellobtc), author: A Tree Yang, authorized reprint of Odaily Planet Daily.

Recently, the Bank of England announced that it is studying a framework for allowing digital currency transactions. The framework aims to regulate financial services, securities, and the cryptocurrency market. It is said to provide licenses for all businesses related to distributed ledger technology, including exchanges, wallets, etc. The U.S. SEC explicitly stated a ban on ICOs or other virtual currency-related activities. According to information disclosed on the website of the U.S. Department of Justice, on October 27, 2019, the New York State Attorney General’s Office issued a news about filing a lawsuit against Bitfinex and Tether, accusing the company of violating federal banking secrecy laws; and submitted a “stop order” to the New York Supreme Court, requiring them to stop processing any company accounts involving Bitcoin and other token issuances (ICOs). In addition, NYAG also confirmed that it has taken legal action to prevent their involvement in illegal financing activities, which means that these companies may be suspected of fraud, manipulation, and fundraising for unregistered securities issues. However, if illegal and criminal activities are found and undergo criminal investigations, they may face permanent imprisonment or penalties.

However, at the current situation, although some countries have begun to implement anti-money laundering measures to combat Bitcoin, Ethereum, and other decentralized applications, there are still severe regulations for certain areas:

1. Do not use Internet giants’ platforms for online payment, transfers, remittances, buying and selling goods and services, purchasing domain names, etc.

2. Establish a unified data storage system that allows everyone in the world to view their personal information, such as name, address, date of birth, and social security number.

3. Set security levels to ensure that user data will not be leaked to third parties.

4. Will not holding the private key lead to property loss? Blockchain can achieve multi-party collaboration and cost reduction, promoting the healthy development of the industry. However, how to solve this problem still needs further observation. Will blockchain be banned? First, we must know what government departments should do to prevent fraud, hacker attacks, and the use of various forms to hide identity information and gain public trust. Therefore, countries hope to strengthen research and publicity on its legitimacy through legislation to protect consumers. At the same time, countries are also actively exploring the possibility of formulating policies to support blockchain technology. For example, in August last year, South Korea launched a new blockchain project called Chains of Blockchain; at the end of May of this year, the Central Intelligence Agency of Japan issued guidelines on the development of blockchain, proposing the establishment of an enterprise called SBI Holdings to carry out blockchain technology research and development.

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