Archive for year: 2019
Our Meet Up to catch up on all things Scotcoin happened on Wed 8 May at the Avalon, Glasgow:
Scotcoin Charity Work
Tommy Reid from the charity EatUp joined us to explain how Scotcoin is helping them improve life for people in Scotland. In fact that is our mission statement – improve the lives of people in Scotland. As we have frequently said, it is our intention to inhabit the Charity sector. We have several ongoing initiatives which we intend to nurture and grow in this respect, and feel sure this is something holders can relate to and will wish to support.
So, where is Scotcoin at the moment?
New team members: Social Media and Business Outreach Managers
- Elizabeth Myles –Geddes, joins us as our social media manager. If you have any stories or information you think relevant, please get in touch with her to co-ordinate and schedule posts.
- Michael Robertson is undertaking a project for us to enhance our reach in the Scottish business community.
He and Elizabeth will be working closely to make sure all our efforts are connected and moving in the same direction.
In terms of development, we are well through the work needing to be done both with our development partners and our own technical people, who are obviously going to be trained in what the new blockchain is and can do. There have been many hostages to fortune in the past because this is not like making a paper aeroplane, it is an extremely complex and difficult AND expensive process which moves at its own pace.
Real life examples of how long complex development can take:
- MaidSafe from Troon who said several years ago they were within a month or so of launching and still have not done so.
- Interbit, Canada, who are working with International Banks on various projects. They used to be called BTL, but in essence they have continually missed their deadlines.
My point is that large software development programs require patience and time, and ours is no different. But we WILL get there.
More importantly, we continue to work towards collaboration with other coins and other uses of coins.
- Women’s Coin: We are in the process of formalising an arrangement with Women’s Coin. Their object is to empower women everywhere and enable them to work for themselves within their own ecosystem. This would represent a large expansion of people who might use Scotcoin and as a result we firmly believe that not only would we have more Scotcoin holders, but also more businesses accepting coin.
- Blockspot verified: We have recently been verified by Blockspot. Blockspot are the largest and most trusted verifier of Crypto currencies, covering all metrics. We will shortly be undertaking a joint promotion with them which we hope will expand the numbers of our coin holders.
As of now as I’m sure you are aware, Scotcoin is using the Counterparty Protocol, which is in essence the Bitcoin blockchain. Part of that protocol is the requirement that trading on the Counterparty DEX or decentralised exchange can only be undertaken using Counterparty’s own coin, which is XCP- in other words a secondary intermediary token with all that implies for volatility and instability. Once we move away from Counterparty, there will be no requirement for an intermediary token. This in itself will enhance the value of our coin. We intend to be available on a minimum of three exchanges, subject to their requirements. It’s worth reiterating that the reason for the migration is that as we have said before there is no chance that in the future regulators and central banks will allow funds to be sent anonymously with no idea of where those funds have come from, who they are going to and whether or not they have had tax levied on them. This is the whole point of our migration, and we have continually said that our KYC and AML protocols will comply with any and all regulations as required. It should be noted however that there is no compunction on anyone to migrate. It is entirely up to the individual to make their own decision.
There is a very important point here. The entire development process has to date been funded from donations of coin or money from the holders of the IP. Yes that coin has then been sold, but that does not detract from the point that we donated the coin in the first instance to the project. In other words, people buying coin received value for their money. Effectively, so far, everyone has had a free ride on the backs of the IP holders. In addition, we have several hundred wallets which, for whatever reason, have very little Scotcoin in them – indeed, some of them have less than one SCOT. It is our intention to close out any wallets with under 100 SCOT in them prior to migration. We do, however, wish to keep these wallet holders as our continuing holders. In order to do this, at the moment we are current selling at the equivalent of just over £14 per 1000. We will shortly be offering limited coin at a heavily discounted price to enable people to participate in the migration who presently would not be able to be a part of it. It should also be said we will accept other Crypto currencies in exchange. If you are in this category, and wish to participate, please get in touch with myself. It is also worth mentioning that Scotcoin, the coin, is distinctly separate from The Scotcoin Project. The latter is a CIC with the task of educating and explaining blockchain and crypto currency to people in Scotland. Scotcoin is one of many crypto currencies which we hope will become defacto the one and only crypto currency for Scotland.
I would refer back to our previous ideas about the migration. We have had feedback from holders and our idea of aligning existing SCOT to nearer £1 per Scotcoin by the compression of 100 SCOT into 1 NEW SCOT ( colloquially referred to as V3) has not been well received. Accordingly we are rethinking this and will advise in due course.
The costs associated with the blockchain are of the order of £250,000. In order to fund the blockchain it is clearly unfair that the IP holders should pay for everything as it benefits everyone else. There are still holders of Scotcoin who have never bought any, somewhere in the region of 150-200 at last count, having been given them in an airdrop at the beginning, and hence never contributed anything to the ongoing costs. It is our intention that our new blockchain will be properly and fairly funded and for the benefit of everyone within the Scotcoin community.
The existing V2 coin on Counterparty will in the first instance be exchanged into an ERC20 token. This alone will enhance value considerably, although, as already stated, no one has to migrate if they don’t want to.
Moving onwards, we have said before that we intend to have an advisory board, and to this end we would be pleased to receive suggestions and have candidates come forward. The board will consist of 6 to 8 members, will probably meet 4 times a year, and its members will receive Scotcoin for their efforts. They should all have an interest in Scotcoin and what it can do for Scotland, as well as a vision for its future. Please get in touch with me [email protected] for the above, or indeed for anything else you want to talk about.
One last thing, I did an interview with John Beattie of BBC Radio. It was quite a long interview and will certainly be cut, but it will be available from tomorrow as far as I know at the moment.
Also we are in the final stages of testing hosting which we will sell in exchange for Scotcoin. We also intend to offer SEO services, keyword research, website development all in exchange for Scotcoin. We will give full details at our next meetup.
Scotcoin verified by Blockspot.io
We’re thrilled to have been verified by https://blockspot.io/coin/scotcoin/.
Their mission is to become the most complete Blockchain Data Platform by collating information on as many coins as possible and displaying independently verified material on how the coin is performing. This allows users to make informed decisions on whether to buy or sell and whether to invest further on ICO projects etc. New blockchain projects are added to the platform every day – currently:
- 4,000+ coins listed
- 500+ exchanges monitored
- 1465+ blockchains analysed
- 5933+ social URLs followed
They’ve also got a very handy cryptocurrency dictionary here: https://blockspot.io/crypto-dictionary/
Which allows you to quickly look up some of the more obscure terminology associated with blockchain technology.
Date: Wed 8 May
Venue: Avalon, 25 Kent Road, Glasgow G3 7EH
Join us for an update on The Scotcoin Project and cryptocurrency in general. As the cryptocurrency market grows and matures, we see trends emerging showing the best ways of getting wide scale adoption and how blockchain technology is being used.
Chat to the development team, find out more about this emerging technology, newbies and experienced enthusiasts all welcome!
If you haven’t been following this,
in a few short bullet points:
- Crypto exchange has a few problems
- Owner of exchange “dies” in India
- Crypto wallets with £105m can’t be accessed “because he was the only person with the password”
- Wallets get opened.
- Hey presto! There’s nothing in them
Now call me cynical but if the money had been there, I would have said that maybe he was dead. But the wallets were apparently cleaned out months before and there are a whole lot of unauthorised wallets that the coin might have gone to. One person access = danger, under all circumstances. It’s why quoted companies usually don’t have the same person as Chairman and CEO. You only have to think of Robert Maxwell https://en.wikipedia.org/wiki/Robert_Maxwell
This is exactly why people don’t trust crypto-currencies. For a start more than one person should have had the password available to them and indeed maybe in this kind of fiduciary situation it should have been accessible only with two or more private keys. That raises all sorts of questions as well about storing passwords, and indeed it is one of the areas where we at Scotcoin are working to achieve some sort of standard.
From our own perspective security is more important than anything. The whole point of crypto-currencies is that you can rely absolutely on what the blockchain tells you, via its decentralised approach. If that trust breaks down, what is the point?
To be fair, as far as I know, it has always been an “inside” job where things have gone wrong. But part of the problem that there has been with ICOs and exchanges is that there has been no over-arching regulatory set up to make sure everyone plays fairly by the rules. In the wild west the cattle barons made their own rules until the Federal Government imposed their laws – and profited immensely. The same situation pertains within the world of digital currencies at the moment. The nature of the beast attracts charlatans and card sharps. Until regulation is everywhere there will always be poor benighted people who lose out. That’s one reason that Malta and its legislation is so important for the future and development of blockchains and crypto-currencies.
We at Scotcoin embraced regulation and disclosure a long time ago, and we fully expect to be able to comply with any and all regulations as they are enforced. Just one more reason to believe there is a solid, secure future for Scotcoin. Get your Scotcoin here or give some to a friend or valued employee with a Gift Voucher.
1. General introduction: I want to start by telling you all about the issues we had last year. Without going into too much detail as lawyers are involved and matters are sub judice, it became obvious in about May of 2018 that we were being led up the garden path and generally legged over. It took us a further 3 months to engage a new CTO who, once he had completed his review of what had happened concluded we had been sold a pup. The Initial historic review of what was being done– stripping back Hyperledger for Brooklyn – was shown not to work.
2. Engagement of world experts and academics in review process, including one of the writers of the Github protocol. We did a full gap analysis audit which detailed the shortfall in delivery. The advice we received was that the solution that had been suggested did not work and never would.
3. This led us on to Legal engagement, and we then intimated a claim for over £175,000.
4. Final concluding meeting to position the final piece of this jigsaw with a further systems expert has taken place and a final claim is in the process of being promulgated.
As a result we have vigorously defended our position. Even allowing for that, it took us nearly 8 months to disengage from our previous partnership and a lot of money. Over all we lost approaching £250,000. As a result this figure has been written off in our accounts. The contract we had was terminated and we are currently suing the previous company we were working with.
We have since that time worked extremely hard to enter a new partnership, taking on board all that had been learned, and making use of the latest Hyperledger updates. We are presently satisfied that we have the right partners and the right path to take this project to a good conclusion.
During the course of the next 6 months or so, Scotcoin will move to Version 3, on its new permissioned blockchain.
1. Hyperledger launched in 2015. In just three years, the organization has grown to over 260 members including Fortune 100 companies, like Accenture, SAP, Intel, and IBM; academia, startups, and other open source communities. An impressive number of companies are using Hyperledger (HL) in production systems. The Hyperledger Greenhouse is an ‘Open Source’ ecosystem flourishing with frameworks and tools for building business blockchains. So our requirement of Pulsant in the second half of 2018 was for Pulsant to support HL on the Pulsant Cloud, as a service to us.
The Tender process through second half of 2018 included IBM. Scotcoin has support at board level of Pulsant UK. Pulsant are specialists in cloud solution integration and trusted partners with Amazon Web Services, Microsoft Azure Cloud and the Google Cloud Platform . They are experts in the management of the modern cloud infrastructure.
2. The Contract to deliver Cloud Services with Pulsant and Hyperledger in the cloud was completed on new years eve 2018.
3. The discovery phase by Pulsant has already commenced.
4. In respect of the Potential timeline – It is anticipated that upon completion of the processes currently in train, Scotcoin Hyperledger service will go live – around mid 2019.
5. Consensus mechanism is standard Hyperledger Kafka process;
- Kafka guarantees that all messages inside a partition or a virtual machine are sequentially ordered.
6. During testing confirmation & ordering will be done between Pulsant and Scotcoin.
7. A sales process has already commenced to identify peers for Scotcoin in the first instance (e.g. IrishCoin) these peers will become part of Scotcoin confirmation and ordering process on the blockchain in the future, as we will contribute to their process.
8. Peers will in effect be entities with whom we do business and they may have several nodes, nodes are a technical computing term; peers are a business partner concept, Scotcoin will in effect have 2 nodes initially v3 & the Kafka ordering or consensus message security protocol.
- A blockchain network is comprised primarily of a set of peer nodes (or, simply, peers). Peers are a fundamental element of the network because they host ledgers and smart contracts.
- A peer is able to host more than one ledger, which is helpful because it allows for a flexible system design. The simplest configuration is for a peer to manage a single ledger, but it’s absolutely appropriate for a peer to host two or more ledgers when required.
- Nodes are the communication entities of the blockchain. A “node” is only a logical function in the sense that multiple nodes of different types can run on the same physical server. What counts is how nodes are grouped in “trust domains” and associated to logical entities that control them.
- There are three types of nodes:
1. Client or submitting-client: a client that submits an actual transaction-invocation to the endorsers, and broadcasts transaction-proposals to the ordering service.
2. Peer: a node that commits transactions and maintains the state and a copy of the ledger. Peers can have a special endorser role.
3. Ordering-service-node or orderer: a node running the communication service that implements a delivery guarantee, or total order broadcast.
It should be noted that each peer needs a channel on a one to one basis. Each channel however can support multiple nodes and this will enable us to move in time from centralised to decentralised validations.
9. Identity management for Scotcoin peers and clients will initially be following the Sovrin Foundation philosophy “decentralized self sovereign identity” (DSSI or SSI).
- “SSI: An identity model that allows an individual or organization to control their identities, or the identity of a thing, expressed through the use of decentralized identifiers and digital credentials.”
- In specific technology terms how we implement that SSI will be a decision made jointly with Pulsant but only once the Hyperledger application stack is functional in the cloud. We will optimize security at the infrastructure & the application level.
- Crucially Scotcoin V3 will in the first instance be a permissioned blockchain so not completely decentralized,. We will as soon as practicable and subject to utter security, move to trusted third party confirmations.
- At the beginning of the Blockchain, there was an idealistic idea that anyone with a laptop could become a node on the Blockchain network. A group of libertarian computer experts calling themselves cypherpunks had been developing non-state currencies over decades. But all efforts to establish them as an alternative means of payment failed. This is the concept of permissionless or decentralized blockchain networks.
- When we worked through the use cases in 2018, we realized that Hyperledger and the permissioned Blockchain was the only pragmatic way to get the job done with a necessary level of control and security. We are practical business technologists. In essence the partnerships with Hyperledger and Pulsant will support a general token solution for Scotcoin’s new coin.
- Scotcoin’s new blockchain will be permissioned, that means that everyone on it will be allowed to be on it – there cannot be random third parties, attaching to our platform. This allows us to comply with KYC & AML regulations since by definition we KYC!
We have had an update from our developers which I will share with you.Work is going quite intensively. At the moment we are finalizing the Wallet (frontend and backend) and already started working on Hyperledger Fabric:
- Hyperledger Composer assembly – done
- Asset chaincode programming – in progress
- Asset features and logic programming – in progress
- CA and permission level programing – in progress
- Transaction function and fee structure programming – in progress
- Hyperledger Explorer deployment – done
- Rest API programming – in progress
Currently the process is going as we have planned. The next milestone – Initial Testing stage starting 4th of March.
10. Algo for migration.
- V2 holders need to be kyc etc and that needs to be BEFORE the process starts for migration.
- Once they are clear, they need to advise in a form a) The wallet they hold SCOT in b) how many and c) whether they have a little bitcoin d) If not we send them a smidgeon to enable transaction to proceed.
- They need to create their own wallet with all the usual caveats.
- They need to confirm to us they have done this and what the address is.
- We then work out how many V3 they are due to receive and we so advise them.
- They have to confirm acceptance of that figure.
- We then have a white list of people who can get V3 and the numbers.
- We then advise them to send their entire V2 to a wallet we will designate.
- Once we have confirmed as received we send V3 to their wallet.
- V2 sent to us for migration will be “burned” and put beyond future use.
I should also say we intend that the final confirmations on this will be done manually. Those of you who remember MasterXchange will recall that they did ALL withdrawals manually. Although this meant it sometimes took a little time, it also meant there was never a hack nor a mistake.
We might be biased, but there’s a growing voice behind using cryptocurrencies in favour of a credit card.
Dashnews reports that growing credit card charges have encouraged people to take a second look at using cryptocurrencies to exchange cash. Some interesting points in this article – what do you think?
Peer to peer network Paxful has reported a boost in trading figures using Bitcoin as opposed to traditional currencies. They attribute this to the instability of local currencies and the ease of using crpytocurrencies to exchange goods/services using just a mobile phone.
The Scotcoin Project CIC (“Scotcoin”)
Scotcoin announces that it has terminated its contract to develop a new KYC and AML blockchain solution for the digital currency following a lengthy and difficult period of discovery and consolidation in respect of the contract.
However, we are also pleased to announce we are in advanced discussions with a new supplier and we expect to be in a position to make an announcement in the first quarter of this calendar year. We are currently going through the financial and legal due diligence process.
The proposed new contract will provide Scotcoin with its own distributed ledger technology infrastructure which will be fully compliant with KYC and AML in all respects. It will be capable of processing a high volume of confirmations and transactions per second at minimal cost. It will also provide Scotcoin with its own fully compliant wallet.
Upon delivery of the solution it is anticipated that migration terms including incentives will be announced shortly thereafter.
Scotcoin will be entering into a consultation process with key stakeholders over the coming weeks and further announcements are anticipated.
Willie Fleming, Director, The Scotcoin Project CIC said: “We have had a very difficult year and have had many obstacles to overcome. These have held us up beyond what we expected. We are confident that now we have the right partners to take us forward to fruition”
Information on Scotcoin is available @