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Blockchain Startup Developed Solution to Crypto's Irreversible Transaction Problem

An Israel-based blockchain startup has developed a way to retrieve crypto funds sent to wrong addresses. The startup has developed a new technology that could prevent the loss of funds caused by human error when sending Bitcoins or other cryptocurrencies. The mistake is common as wallet addresses are represented by a unique and random string of alphanumeric characters that can easily be entered incorrectly.

Users at Fault of losing crypto assets

According to research, 55% of respondents said that they had experienced stressful human errors when sending crypto assets, and 18% revealed that they had lost money through such kind of sending errors. The new technology is an important solution to challenges facing most non-technical customers using cryptocurrencies.

Kirobo’s Retrievable Transfer feature functions by developing a new layer solution onto existing blockchain protocols. This gives crypto-service providers and customers new capabilities. Users are now able to cancel a transaction if they sent funds to wrong addresses. Asaf Naim, Kirobo CEO, said: “Our aim is to make blockchain transactions as simple and as secure as online banking.”

The company’s logic layer provides a unique transaction code that the recipient must enter in order to receive funds from the sender. Until the recipient has entered the appropriate code, the sender may retrieve the money at any time.

Loss of funds normally happens when a sender includes an error in the long string of alphabetic characters that make up crypto addresses. A way to increase efficiencies and make transactions less risky could assist in encouraging new users of cryptocurrencies.

Adam Levi, DAOstack CTO, and adviser to Kirobo stated that by removing the fear from cryptocurrency transactions, Kirobo would boost the increasing adoption of cryptocurrencies.

Kirobo stated that it does not store or hold a user’s private keys. The unique code simply governs whether or not the transaction would be finalized. The feature also can operate offline in case Kiboro’s servers go down.

The company’s platform has obtained support from the Israel Innovation Authority, the arm of the Israeli government, whose responsibility is to foster industrial research and development. Kirobo also has been audited by the Scorpiones Group cybersecurity firm.

Now Kirobo’s Retrievable Transfer feature is available for Bitcoin transfers on crypto wallets from France-based company Ledger. The firm expects to roll out the support in other crypto wallets over the coming months.

Avoiding Loss of Funds

Anyone using crypto assets needs to know about crypto scams and related risks to stay safe while using crypto.

Cryptocurrencies keep breathing headlines and attracting users and investors from all over the world. However, when users deal with cryptos, they are exposed to higher risks than any other internet user. It has become more vital to stay informed on how to prevent unfortunate events from happening and avoid losing hard-earned crypto coins.

Tel Aviv Stock Exchange To Launch Blockchain Based Securities Lending Platform

The Tel Aviv Stock Exchange (TASE) has announced it will be launching a blockchain-based platform that will enhance digital securities transactions and sharing.

TASE, the only stock exchange in Israel said that it began testing the blockchain-based solution in March and it is on course to be officially launched in November. The blockchain platform is a centralized solution that uses Decentralized Ledger Technology (DLT) of Hyperledger Sawtooth. The platform will facilitate peer-to-peer sharing of data among financial organizations which will help remove the need for further transaction reconciliation.

The TASE blockchain innovation is the first of its kind in the country. Commenting on the exchange’s strides, Orly Grinfeld, EVP and Head of Clearing at TASE said;

“The Tel Aviv Stock Exchange is proud to present this first-of-a-kind lending pool, a safe, cutting-edge, and state of the art platform. The Blockchain technology will present a new level of safety for securities lending and will support growth for transactions based on this new platform. TASE is a global financial innovation leader, and strategically pursues the technological advancement of the capital market.”

Prior to this time, there has been a huge demand for the lending ecosystem in Israel which is basically facilitated by the banks. The proposed blockchain-based platform will help to serve the teaming financial agents across the country.

Israel Churning Out Innovative Blockchain Solutions

As a viable means to tag along in the dynamic growth of global blockchain-based innovations, Israeli startups are turning out to model blockchain to meet societal needs. Among this innovation is that from an Israeli based blockchain startup that developed a new technology that could prevent the loss of funds caused by human error when sending Bitcoins or other cryptocurrencies.

As the coronavirus pandemic also raged back in March, Samsung partnered with Israel’s Credorax to launch an automated blockchain payment platform with the capability to enhance settlement solutions. The state of blockchain integration amongst Israeli institutions and blockchain enthusiasts may be enhanced with this great blockchain solution being rolled out.

Israel Incoming President Receives NFT Souvenir from his Father

To celebrate Israel’s 11th incoming President Isaac Herzog, the Knesset, Israel’s Parliament, presented a non-fungible token (NFT) archive of the original oath draft Wednesday, signed by Herzog’s father, the former President Chaim Herzog, as the gift for the newly elected President’s inauguration.

The physical document of the oath is originated from former President Chaim Herzog, the sixth president, signed on May 5, 1983. It reads: “…I pledge to maintain allegiance to the State of Israel and its laws and to faithfully fulfil my role as President.” according to the coverage from the local news agency.

“I am thrilled to give President-elect Herzog a special memory from his father that includes the wording of the oath he signed 38 years ago,” said Mickey Levy, Knesset Speaker.

Specialists of the Knesset produced a unique image file by using a secure and encoded mobile device. Local media said this is the first parliament worldwide to use this technology in terms of NFT to lend the declaration’s wording. In addition, the souvenir is preserved in digital form and printed copy which is not for sale, and will reportedly be kept in cold storage before returning at the end of his presidency.

Herzog’s NFT; Photo: Israel Knesset. President Isaac Herzog said in his inauguration speech and pledged to be “the president of everyone”:

“My mission, the mission of my term, is to do everything in order to rebuild hope,”

The 60-year-old new president has served as the head of the Labour Party and the opposition leader before his presidency.

Israel Develops CBDC Shekel

Apart from the application of the NFT, Israel is also reforming the monetary policy. A senior administrator from the Bank of Israel said the bank had completed testing on its digital currency, Shekel, last month. Last year, the Tel Aviv stock exchange announced and launched a Central blockchain-based securities lending platform to enhance digital securities transactions.

Image source: Israel Knesset

Burnt Ether Tops $2B as Ethereum 2.0 Deposit Contract Continues to Grow

Ethereum’s market capitalisation recently breached the $500 billion mark as more investors keep a keen eye on this network.

Ethereum’s uptick in activities can be illustrated by the fact that burnt Ether stands at 608,567 ETH worth $2.089 billion since the London Hardfork or EIP 1559 upgrade went live on August 5.

This upgrade prompted the first-ever deflationary block on the Ethereum network because scarcity was introduced every time Ether was burnt after being used in transactions.

This feature helped in eliminating inflationary tendencies that the network was accustomed to before.

The London Hardfork upgrade also eradicated the use of other digital tokens for payment of fees on the Ethereum Network. Only Ether was utilised, thus restoring the unique relevance of the ETH cryptocurrency.

Total Value Locked in Ethereum 2.0 breaks the record

According to crypto analytic firm Glassnode:

“The total value in the ETH 2.0 deposit contract just reached an ATH of 8,000,290 ETH.”

Ethereum 2.0, also known as the Beacon Chain, was launched in December 2020 and was regarded as a game-changer that sought to transit the current proof-of-work (POW) consensus mechanism to a proof-of-stake (POS) framework.

The POS algorithm allows the confirmation of blocks to be more energy-efficient and requires validators to stake Ether instead of solving a cryptographic puzzle.

As a result, it is touted to be more environmentally friendly and cost-effective. ETH 2.0 is also expected to improve scalability through sharding.

Israel intends to launch its CBDC on the Ethereum network

Israel plans to launch its central bank digital currency (CBDC) on the Ethereum network through its central bank, the Bank of Israel.

The trial intends to check the pros and cons of digital currencies, and the nation sees Ethereum as an ideal solution.

CBDCs represent the digital form of a nation’s fiat money. They are managed directly by the country’s central bank and are backed by national credit and government power.

To stabilise currencies liquidity which the seemingly inevitable cashless society in the future, many countries are now launching experiments to test the workings of CBDC.

In September, the Bank for International Settlements (BIS) teamed up with the central banks of South Africa, Malaysia, Singapore, and Australia to kick start a project dubbed Dunbar to test the application of CBDCs in cross border payments.

Coinbase Acquires Cryptographic Security Company Unbound, Strengthening Presence in Israel

Coinbase Global Inc has announced that it has acquired an Unbound security company based in Israel, developing ways to transfer and store cryptocurrencies more easily and securely.

On Tuesday, November 30, Coinbase stated that it acquired Unbound to expand its multi-party computational (MPC) capabilities, gain access to the company’s cryptographic security experts, and launch a research facility in Israel Unbound’s native country.

The Unbound acquisition would enable Coinbase to establish a presence in Israel, where the firm plans to grow its technology research and development centre significantly over time.

Coinbase considers Unbound Security as a leading firm in MPC, a subset of cryptography that allows multiple parties to evaluate a computation without any of them revealing their own private data.

The crypto exchange stated that Unbound’s work in multi-party computation to provide users with the “virtually impenetrable nature of cold, offline storage, with the frictionless convenience of hot, online wallets.”

Coinbase explained that secure multi-party computation is an application of advanced mathematics to enable crypto tokens to be deployed, transferred, and stored more flexibly, securely, and efficiently than ever before.

Coinbase talked about the development and said: “We’ve long recognized Israel as a hot bed of strong technology and cryptography talent and are excited to continue to grow our team with some of the best and brightest minds in these fields. The Unbound Security team will form the nucleus of this new research facility, which we plan to grow over time.”

Since Coinbase generates most of its money from retail trading fees, the crypto exchange is planning to diversify its products and revenues to offer more sustainable growth while also focusing on customer services and ease of use.

In the third quarter, Coinbase’s retail monthly transacting users declined to $7.4 million from $8.8 million in the second quarter as the volatility of crypto prices discouraged trading among small investors.

Coinbase earned $6.4 billion in cash and equivalents during the third quarter, including around $2 billion in net proceeds from issuing senior notes in September. In the past, the firm stated that it planned to use some of the funds for acquisitions.

Coinbase Keen on Developing its Market Share

The Unbound is the latest acquisition made by Coinbase, which has acquired more than 13 companies this year. Earlier last month, the largest US crypto exchange bought India’s Agara, which operates an AI-powered customer support platform, to improve its customers’ services. The cryptocurrency exchange wants to make it easier for users to join the service and seek assistance.

On November 24, Coinbase acquired crypto wallet firm BRD to enhance its web3 adoption further.

In May 2020, Coinbase purchased Tagomi, an advanced cryptocurrency brokerage platform specifically targeted at professionals and institutional investors, to improve its institutional trading offering.

Coinbase also previously purchased firms, including cryptocurrency market analytics firm Skew, blockchain infrastructure company Bison Trails, and data aggregation service Zabo, with each agreement worth millions of dollars.

Leumi to Become 1st Israeli Bank Facilitating Crypto Trade

Bank Leumi’s digital platform Pepper Invest announced that the bank is set to become the first Israeli bank to facilitate cryptocurrency trading – following a partnership with US blockchain firm Paxos, according to a report by Reuters.

The announcement also clarified that currently, the new service will only allow customers to buy, hold and sell bitcoin and Ethereum. The transactions are limited to at least 50 shekels ($15.49).

However, the launch date is yet to be decided due to pending regulatory approval.

Leumi is one of Israel’s two largest banks, Reuters reported.

“Pepper will collect tax according to the guidelines of the Israeli Tax Authority so that customers will not need to manage tax complexities,” Pepper Invest said. The service will also eliminate the risks of downloading a digital wallet, it added.

Israel has already taken steps to safeguard people from illegal crypto activity in the country.

According to a report from Blockchain.News, the Bank of Israel has issued a new draft guideline to stakeholders in the cryptocurrency ecosystem concerning Anti-Money Laundering (AML) provisions.

The press release published by the bank stated that the new guideline has become a necessity due to the growing number of funds flowing into the traditional banking system through the crypto ecosystem.

The report stated that according to the new guideline, the Bank of Israel will mandate financial institutions operating in the country to “conduct a risk assessment and set out policy and procedures for the transfer of money that originates in or is destined for virtual currencies, taking a risk-based approach and identifying the virtual currency service provider.”

While the Bank of Israel also carried out a pilot test in June last year and has seriously considered implementing a CBDC of digital Shekel.

Top US crypto exchange Coinbase has also built a presence in Israel after acquiring security company Unbound.

Unbound is involved in developing ways to transfer and store cryptocurrencies more easily and securely.

Crypto Firm Bits of Gold Obtains Capital Markets License from Israeli Regulator

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Bits of Gold, an Israeli-based firm engaging in crypto trading and brokerage services, announced on Thursday that it has obtained a license from Israel’s financial market regulator, the Capital Markets, Insurance and Savings Authority.

With the license from the watchdog, Bits of Gold said it will be able to partner with local banks and financial institutions. The crypto firm said the license, along with the recent guidelines from Israel’s central bank, will help resolve many issues associated with relationships between local banks and crypto.

The move makes Bits of Gold the first local crypto provider to obtain the license. The company said it applied for the license back in 2018.

Bits of Gold is preparing to develop a platform that will enable local and European banks and fintech firms to offer cryptocurrency services to customers. The company wants to start offering crypto custody services through its new digital wallet starting next month.

Is This the Beginning of Crypto Trading in The Country?

In the past, local banks had taken an ad hoc approach to accepting deposits tied to crypto investments. But that changed in November last year when the country’s capital market regulator approved Israel’s new anti-money laundering (AML) and anti-terrorist financing rules for crypto asset service providers. The rule cleared the way for local banks to more easily accept customers from the crypto sector.

The new AML rules cover the identification and verification of crypto recipients, reporting requirements for crypto companies, and the layout of a risk-based approach to dealing with money laundering.

In March, Israel’s central bank published draft regulations that further opened up the country’s financial system to crypto firms by requiring banks to examine the crypto firms individually rather than imposing blanket refusals on them.

In late March, Bank Leumi became the first Israeli bank to start facilitating crypto trade. Early this month, Israel’s financial market regulator granted a first permanent license to a local private firm, Hybrid Bridge Holdings Ltd., to engage in cryptocurrency activities. As a result, Hybrid Bridge Holdings is now building a crypto custody and exchange platform.

In Israel, many firms seeking to engage in the crypto industry are still obtaining approval from the regulator.

In February, the Binance exchange came under the regulator’s scrutiny over licensing issues. The watchdog ordered Binance to suspend marketing to Israeli users and stop all activities focused on Israel until the issues are addressed.

BIS Launches Project Icebreaker with Central Banks to Explore CBDC

The Bank for International Settlements (BIS) has rolled out Project Icebreaker together with the central banks of Sweden, Norway, and Israel to see how CBDCs can be utilized for international remittance and retail payments.

Per the announcement:

“Project Icebreaker is a collaboration between the Bank of Israel, Central Bank of Norway, Sveriges Riksbank and BIS Innovation Hub Nordic Centre to develop a “hub” to which participating central banks will connect their domestic proof-of-concept CBDC systems.”

Since cross-border payments are accustomed to insufficient transparency, limited access, low speeds, and high costs, Project Icebreaker seeks to explore how central bank digital currencies (CBDCs) can bridge the gap.

Ideally, it will scrutinize the technological feasibility and specific key functions of interjoining various domestic CBDC networks.

The project’s final report is scheduled for the first quarter of 2023, given that it will run till the end of the year.

Andrew Abir, the Bank of Israel Deputy Governor, noted:

“The results of the project will be very important in guiding our future work on the digital shekel.”

He added:

“Efficient and accessible cross border payments are of extreme importance for a small and open economy like Israel and this was identified as one of the main motivations for a potential issuance of a digital shekel.”

According to a survey by Ripple, CBDCs have triggered overwhelming consensus among global finance leaders.

The study disclosed that more than 70% of them were certain that CBDCs would spur financial inclusion, Blockchain.News reported.

Once rolled out, CBDCs are expected to drive the financial inclusion of nearly 1.7 billion people left out of the banking system. This is because CBDCs are digital assets pegged to real-world assets and backed by the central banks.

In May, 90% of apex banks have shown intentions of rolling out Central Bank Digital Currencies (CBDCs), according to a study by the Bank for International Settlements (BIS). More than 110 countries are currently at one stage or another of the CBDC development process, and many more are poised to join the trend.

-With assistance from Annie Li –

The Development of Blockchain Chips

The use of blockchain technology is on the increase, and the majority of businesses are investigating the technology in some form. As blockchain technology grows more widespread, users of all stripes will want access to the possibilities offered by this platform in the most effective manner possible.

The development of blockchain chips as energy-efficient accelerators is one of the measures that have been taken as a result of this. Chain Reaction, a blockchain chip business located in Tel Aviv, said on February 23 that it has funded $70 million in order to grow its technical staff in preparation for the development of its next chip.

According to Alon Webman, co-founder and CEO of Chain Reaction, the new chip will be a “completely homomorphic encryption” device. This kind of chip would allow the user to continue working on data even while the chip is in the process of encrypting it.

“Today, if you have data (which) is encrypted into the cloud, and in order to perform any data operation or data analytics, or do A.I., you need to decrypt the data,” said the researcher. “This is a must.”

He went on to explain that governments and big companies, such as the military industry, that may use cloud services but are now barred from doing so owing to worries about security.

“As soon as the data is encrypted, it is vulnerable to assault by a hostile person who may read it, steal it, or even modify it.”

A chip that is encrypted and also provides access to data that is encrypted might be helpful in this situation. According to Webman, Chain Reaction anticipates releasing that chip as soon as the year 2024 comes to a close.

According to Webman, Chain Reaction plans to begin mass manufacturing of its existing blockchain chip, Electrum, in the first quarter of 2023. This information comes from Webman. The chip was developed to facilitate hashing in a speedy and effective manner. Additionally, it has applications in the mining of several cryptocurrencies.

The software maker Intel also introduced a blockchain chip created by Nvidia in February 2022. This chip was meant to speed up energy-intensive blockchain operations that demand enormous quantities of computational power.

Additionally, Nvidia has a dedicated processor designed just for the mining of Ethereum.

Scammers Target Australians in Cryptocurrency Call Center Scheme

It has come to light that people of Australia are the principal targets of a sophisticated multinational network of con artists that operate out of call centers focused on bitcoin. The network is believed to have originated in China. The heart of operations for the network may be found on the continent of Australia. It is commonly believed that the administration of this network is being handled by criminal syndicates that have their headquarters in Israel.

As part of a large-scale operation, law enforcement officers from the countries of Serbia, Germany, Bulgaria, and Cyprus carried out house searches in a total of eleven locations across the country of Serbia, including four call centers. These locations included the country’s capital city of Belgrade. Officials from the island nation of Cyprus were responsible for the operation’s coordination. During the course of this operation, they discovered evidence showing that Australians were among the citizens of all of the other countries who were exposed to the highest degree of examination. This information suggests that Australians were among those subjected to this level of inspection. The material was made available to the general public on February 23 via the dissemination of an article that had been authored by The Australian and published on that day.

Fifteen individuals and about 1.46 million dollars’ worth of cryptocurrencies were seized into custody as a direct result of the operations, which were carried out as a direct consequence of the acts.

It would seem that con artists who work out of these contact centers are using advertisements on social media in an effort to persuade fresh victims into falling for their schemes. They achieve this goal by ensuring prospective investors that any investments they make would result in a significant return on the cash that they have invested. The findings of the research reveal that individuals do engage in this activity, which testifies to the notion that it is prevalent since it indicates that people do participate.