Welcome to our Daily News Article. Here are the most important cryptocurrency news of October 27.
Chinese Court Confirmed The Law Will Protect Bitcoin; China Does Not Forbid Trading of Bitcoin
The Shenzhen Court of International Arbitration recently issued a ruling. Now there is not any prohibition against Bitcoin ownership and transfer in China. This means that even though there is a ban on ICOs and digital currency trading, Bitcoin and other cryptocurrencies will be legally regarded as a property of the country.
Origin: A Case About Crypto
This new ruling has its roots in a case that had a dispute over a contract involving the transfer of cryptocurrencies.
The plaintiff and the defendant have gotten into an agreement. The defendant would work for the plaintiff and trade his coins for him.
However, after that, the plaintiff accused the defendant for missing the deadline and denying to return the cryptocurrencies.
The balances in question were 20 Bitcoin, 70 Bitcoin Cash, and just over 12.5 Bitcoin Diamond.
The defendant came with a strong argument. He said that due to the ban by the nation’s apex bank on ICOs and virtual currency tradings, cryptocurrency payments are illegal. Therefore, according to the defendant, the contract between the plaintiff and him was invalid.
However, the court disagreed with the interpretation from the defendant and came to a conclusion.
According to the court, the bitcoin return contract concluded between private individuals does not violate the mandatory provisions of the legal and regulatory effects. Therefore, the contract should not be considered invalid. Chinese laws and regulations do not prohibit privately held and legally transferred bitcoin.
Furthermore, although cryptos are digital assets, they noted that it does not prevent it from becoming an object of delivery.
As a result of the case, the defendant had to pay about 100.000 Yuan in damages in addition to returning the coins.
1/ Chinese court confirms Bitcoin protected by law. Shenzhen Court of International Arbitration ruled a case involving cryptos. Inside the verdict: CN law does not forbid owning & transferring bitcoin, which should be protected by law bc its property nature and economic value.
— cnLedger (@cnLedger) October 26, 2018
This is interesting indeed as other countries could start to take similar steps as China and start protecting cryptocurrency by the law as well.
Stellar (XLM)’s Interstellar Reveals Starlight, an Instant Payment Channel
Stellar has revealed the launch of an instant payment channel. This new payment channel has a distinct functionality from the traditional transactions on the Stellar network, which requires publishing details of the transaction and waiting for its confirmation before the transfer of funds.
Named Starlight, it will lock transaction funds in a secure channel where payments do not require the network and only settlement balances will reveal at the conclusion.
Starlight is a bidirectional payment channel on the Stellar (XLM) channel similar to Bitcoin’s Lightning Network. Starlight is going to allow users to send transactions privately in real time without any fees. For the time it will only allow transactions of Lumens, which is the native digital asset on the Stellar blockchain.
According to the announcement, Starlight will eliminate a large number of time-consuming processes. One of these is sending information among the platform users to ensure the legitimacy of a transaction.
Also, security of the Starlight is ensured by way of special information. This special information is exchanged between the users involved in each payment. Details of the information include signed Stellar transactions, which do not get published to the network. Only until one of the participants selects to bring closure to the channel. Once the channel closes, the settled transactions send to each party’s Stellar account balance. This will take into account the back and forth channel’s history of payments.
Finally, the final settled balances are then revealed to the network when the channel is closed. When it comes to other activity within the channel, this will remain private and only be known to its participants.
“Only the final settlement balances are revealed to the network when the channel closes. All other activity in the channel remains private and known only to its participants,” Interstellar explained on the official Medium account.
The Starlight payments channel has some resemblance to the Bitcoin payment channels that the Lightning Network implements. However, the Interstellar team says that the Starlight project wants to go beyond the support given for the payment channel.
The team also wants to work on increasing its compatibility with other payment-channel networks, for instance, the Lightning as well as Interledger.
The Team is Working on New Tokens
Today’s release is a demo product, not the final product. Starlight will initially support bilateral channels. The current project comes with the Starlight payment channel software coupled with a built-in wallet app. For now, Starlight will only accept Stellar Lumens (XLM) tokens. However, the team will be working on implementing more tokens as the updates come.
Stellar is trading at $0.23 USD today, and the price has been mainly lowering from its highest this week, $0.25. There is a possibility the release of the new payment channel could motivate more people to trade on XLM.
Cardano Will Be Sharing Information On Its Proof-Of-Stake Protocol
The distributed computing program Cardano has recently made an announcement on Reddit. The platform will be releasing a series of blog posts that will be sharing information with the community. Such information will be about the Proof-of-Stake (PoS) protocol on its blockchain.
The protocol will allow holders of Cardano (ADA) to manage and help on the maintenance of the platform’s official ledger.
In the recent Reddit announcement, Cardano explains:
“Through the mechanism of staking, ADA holders will receive rewards based on the amount of stake they hold. They will be able to join stake pools to minimize the effort needed to take part in staking and receive rewards through their membership of a pool.”
Cardano (ADA), is trading currently at $0.072 USD with $1,8 billion of market cap. Its price has been decreasing this week and went from $0.077 to $0.073. However, we might see an increase due to Cardano’s implementation in hardware wallets. The potential rise in popularity of the protocol could be a factor as well.
Image Source: research.msu.edu
If you missed yesterday news, you can check them out here: Daily Cryptocurrency News – 26th October 2018