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On-Chain BCH Used in a Submarine Swap for Off-Chain BTC

August 10, 2018 |

On-Chain BCH Used in a Submarine Swap for off-Chain BTC

This week an individual revealed he had completed the first trustless swap by trading on-chain bitcoin cash (BCH) for off-chain bitcoin core (BTC) using Alex Bosworth’s submarine swap protocol.

Also read: Illegal Activity No Longer Dominant Use of Bitcoin: DEA Agent

On-Chain Bitcoin Cash Submarine Swapped for Off-Chain BTC

The decentralized cryptocurrency bitcoin cash (BCH) was traded over the Lightning Network this week for off-chain bitcoin core (BTC). According to an individual on Reddit named u/Darkdeepths, he says he’s been fortunate to see Bosworth’s submarine swap testing and decided to test the protocol himself. The submarine swap protocol is an atomic on-chain and off-chain trading platform created by Bosworth that allows a person to use on-chain funds to pay for an off-chain Lightning invoice. Users can test the protocol with testnet coins and the process was recently used by Jason Wong for an on-chain litecoin (LTC) transaction traded for an off-chain BTC transaction. The Reddit user Darkdeepths decided to utilize bitcoin cash for the experiment two days ago.

On-Chain BCH Used in a Submarine Swap for off-Chain BTC
Darkdeepths BCH for BTC submarine swap.

“I’m trustlessly swapping On-Chain BCH for Off-Chain BTC,” explains Darkdeepths. “I am fortunate enough to get a look at some of the cool submarine swap technology that Alex Bosworth is building — I decided I wanted to test turning some of my on-chain BCH to Lightning Network BTC.”

I created a Lightning wallet on Moneni.com and generated the Lightning invoice there. Alex already had channel capacity, so all I needed to do was enter the invoice and pay the script that he provided. His service also returned a payload with a redeem script and a block height after which I could claim a refund (in case things went south).

On-Chain BCH Used in a Submarine Swap for off-Chain BTC
Concepts like Plasma and Atomic Swaps have become more popular over the last year.

Atomic Swaps and Plasma Trading May Invigorate the Concept of Decentralized Exchanges

A few Bitcoin Cash proponents seemed to like the idea that on-chain BCH was swapped trustlessly for off-chain BTC. Darkdeepths experiment was a top post on the bitcoin-cash focused forum r/btc on August 9. Furthermore, Darkdeepths said he may try to reverse the process during his next test.   

“It was pretty exciting executing the swap with real assets,” Darkdeepths says.   

Thinking of trying the reverse soon (requesting BCH-on-chain for my BTC-on-LN). should work when the swap is initiated from either side of the trade.

Ideas like these make it possible for people to realize the possibilities of trustless trading and truly decentralized exchanges. Ideas like atomic swaps, and plasma are making it possible for traders to swap cryptocurrencies without a third party involved and many decentralized exchanges are basing their models on some form of cross-chain swaps.

What do you think about the individual who successfully swapped an on-chain BCH transaction for some off-chain BTC? Do you think concepts like these will be helpful for decentralized exchanges? Let us know your thoughts on this subject in the comment section below.


Images via Shutterstock, Pixabay, and Alex Bosworth’s Submarine Swap site. 


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The post On-Chain BCH Used in a Submarine Swap for Off-Chain BTC appeared first on Bitcoin News.

Bitcoin News

FBI told FISA court Steele wasn’t source of report used to justify surveilling Trump team, docs show

July 22, 2018 |

On at least four separate occassions, the FBI told the  Foreign Intelligence Surveillance (FISA) court that it “did not believe” DNC-funded ex-spy Christopher Steele was the source behind a Yahoo News article implicating former Trump aide Carter Page in Russian collusion.
FOX News

Japan Has Issue With Word Used to Describe Princess’ Fiancé

July 20, 2018 |

One word in a press release put out by Fordham University Law School in New York has attracted international attention—attention strong enough to get Fordham to tweak the release. The egregious word? “Fiancé.” It was written in reference to Kei Komuro, who is set to begin studying for his…
Newser

Video: Cops Used Coin-Flip App to Decide Woman’s Fate

July 15, 2018 |

Heads, you’re under arrest. Tails, you’re free to go. Body camera video shows Georgia police officers laughing as they use a coin-flip app to decide whether to detain a woman during a traffic stop in April, reports the AP . The video shows Roswell police Officer Courtney Brown asking Sarah Webb…
Newser

The Daily: Russians Used Bitcoin to Hack US Elections, Trader Bets on the Price of BTC

July 14, 2018 |

The Daily: Russians Used Bitcoin to Hack US Elections, Trader Bets on the Price of BTC

Russian intelligence officers accused of meddling in the 2016 presidential elections in the US have used bitcoin to finance their campaign, cover the tracks and obscure their identities, a new federal indictment suggests. You can check the details in today’s edition of Bitcoin in Brief. Also in the daily, billionaire Steven Cohen invests in crypto hedge fund, mysterious expert bets that 1 BTC will cost more than the Berkshire Hathaway’s share in five years, and a leading horse-betting platform now accepts BTC and BCH.

Also read: Crypto-Inheritance Service, Taiwanese Stablecoin, Bitcoin Gift Cards

Russian Agents Used Bitcoin, Mined Cryptocurrency

The Daily: Russians Used Bitcoin to Hack US Elections, Trader Bets on the Price of BTC
Rod Rosenstein

This Friday, a federal indictment announced by Deputy Attorney General Rod Rosenstein turned another page in the story of the alleged Russian meddling in the last US presidential election, and it features cryptocurrency. According to the document, which was released just before a major summit between Trump and Putin in Helsinki next week, Russian agents used cryptos like bitcoin in their campaign to influence the outcome of the 2016 vote.

Authorities in Washington claim that hackers working for the Russian foreign military intelligence paid in crypto for servers in the US and Malaysia, website domains, and virtual private networks (VPNs) used to release information stolen from the Democratic camp and to obscure their identities and cover their tracks. They also laundered more than $ 95,000 through bitcoin.

The 12 GRU officers indicted by the United States special counsel Robert Mueller are said to have acquired bitcoin (BTC) in different ways, including through peer-to-peer crypto trading platforms, using other digital coins and prepaid credit cards as well. US investigators claim the Russians even mined their own cryptocurrency.

The indictment, the first to level criminal charges against Russian officials pertaining to the alleged election interference, suggests that crypto funds were used to lease servers in two US states, Illinois and Arizona, where the hacked information was stored, and pay a Romanian company through a US-based processor to set up a website used to spread it.

Billionaire Steven Cohen Invests in Crypto Hedge Fund

The Daily: Russians Used Bitcoin to Hack US Elections, Trader Bets on the Price of BTCBillionaire Steven Cohen has reportedly invested in the crypto hedge fund Autonomous Partners. The investment was made through his Cohen Private Ventures, Bloomberg reported, quoting an unnamed source. The fund, founded last year, is focusing on cryptocurrencies and blockchain-based companies. It has already attracted investments from Coinbase CEO Brian Armstrong and Craft Ventures cofounder David Sacks.

Autonomous Partners invests in major cryptocurrencies like bitcoin (BTC) and ethereum (ETH) but has stayed away from ripple (XRP) over concerns that the US Securities and Exchange Commission (SEC) may decide that the token is a security. Crypto advocate Arianna Simpson, founder of the hedge fund, commented that she is interested in investing in cryptocurrencies that serve as general purpose money and companies that are building the next generation of financial infrastructure.

The number of crypto hedge funds increased significantly with the rising prices of cryptocurrencies last tear. Recently released data suggests, however, that they have suffered a negative growth in the past months due to the bear market, as news.Bitcoin.com reported.

A Billion-Dollar Bet on the Price of Bitcoin

A crypto trader from Australia has requested to place a unique bet. According to famous Australian bookmaker Tom Waterhouse, the “well-known crypto expert,” who preferred to remain anonymous, wants to wager $ 8.5million AUD ($ 6.3 million USD) that by the end of 2023 the price of one bitcoin (BTC) will exceed that of a share in Warren Buffet’s Berkshire Hathaway. If the bitcoin punter is right, he is expected to win $ 1.2 billion AUD (~$ 890 million).

The Daily: Russians Used Bitcoin to Hack US Elections, Trader Bets on the Price of BTC

Waterhouse said in a tweet this week he had put the man in touch with a large syndicate. Judging by the shared numbers, the prospective crypto gambler is looking for odds of 1/141. Bitcoin is currently trading at $ 6,200 USD per coin, while the share price of the US-based conglomerate currently stands at almost 290,000 USD, which is over 45 times the price of 1 BTC. Bitcoin reached almost $ 20,000 in December last year, and Berkshire Hathaway’s shares have been trading above $ 220,000 since 2016.

Horse Betting Site Now Accepts BTC and BCH

Amwager.com, a leading website for watching and betting on live horse racing, is now accepting bitcoin (BTC) and bitcoin cash (BCH) deposits. The US-based online platform is arguably the first advance deposit wagering (ADW) company to obtain regulatory approval that would allow the implementation of cryptocurrency payments.

The Daily: Russians Used Bitcoin to Hack US Elections, Trader Bets on the Price of BTC“Over the past several years we have witnessed Bitcoin and other cryptocurrencies evolve from an esoteric concept to a widely recognized digital currency that is quickly making its way into the mainstream. With mainstream acceptance, cryptocurrencies have the potential to drastically transform our global payment systems, and we at Amwager seek to be on the forefront of that transformation,” said company CEO Nelson Clemmens.

Amwager’s executive added that the company has been working with the Oregon Racing Commission and Bitpay to bring cryptocurrencies to the ADW industry. According to a press release, bitcoin and bitcoin cash offer Amwager customers an attractive alternative to the traditional methods for adding funds to their wagering accounts. The platform notes that the crypto technology addresses the “inefficiencies that exist in our current banking system by verifying and finalizing transactions rapidly,” mitigating chargeback risks and eliminating delays in the availability of funds.

What are your thoughts on today’s news tidbits? Tell is in the comments section below.


Images courtesy of Shutterstock.


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The post The Daily: Russians Used Bitcoin to Hack US Elections, Trader Bets on the Price of BTC appeared first on Bitcoin News.

Bitcoin News

Papa John’s founder reportedly used racial slur in conference call

July 11, 2018 |

A media agency working with Papa John’s International Inc. decided to cut ties after the pizza maker’s founder and chairman, John Schnatter, allegedly used a racial slur and graphic descriptions of violence against minorities on a May conference call, according to Forbes.

Papa John’s and the agency,…


L.A. Times – Business

CNN

Rescue mission: Divers used up all oxygen for first operation

July 9, 2018 |

Chiang Rai’s governor, Narongsak Osottanakorn, gives details on the rescue mission after four of 12 young boys have been successfully freed from a cave in Thailand.
CNN.com – RSS Channel – World

EMS Staff Used ‘Date-Rape Drug’ on People at Cops’ Request

June 18, 2018 |

Ketamine, a powerful sedative used on both humans and animals, is referred to as a “date rape drug” in the Minneapolis police manual because it can alter or erase memory. It is also used to subdue suspects at the request of Minneapolis police, according to a city report. The report…
Newser

It Used to Be a Walmart. Now It’s Holding Immigrant Teens

June 16, 2018 |

Lawmakers from both parties have been criticizing the Justice Department’s tough new policy that requires immigrant children to be separated from their parents at the border. On Friday, President Trump joined the critics, with a familiar caveat. “I hate it,” he said. “I hate to see separation of parents and…
Newser