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Meetup 15th October 2019

I’m going to start by telling you all a story which has huge significance for digital currencies.

I was in a pub down south with a friend. A little while later, another gentleman came in who my friend knew. After introductions the new arrival asked me “ What do you do then?” I replied that I was involved with cryptocurrency.

“What’s that then?” he asked.

“ It’s like Bitcoin.”

“Never heard of it” he replied

I thought for a moment.

“Do you use Facebook?”

“Oh course” he said.

“ Have you heard of Libra?”

“Oh yes, I know all about Libra,” and he really did. He had read all about it.

So my point is back in say March this year there might have been 40-50 million people who knew something about crypto or digital currencies.

But NOW, a potential 2.7 BILLION do.

And that is a game changer. There’s lots of issues about Libra, not least their problems with SEC and the Senate and people dropping out, but it remains the case that it has opened up the debate that was needed

We will be having the second Advisory Board meeting next week. We have high hopes that this will prove a useful and helpful fixture as we move forward.

We are due to have a meeting with our preferred blockchain suppliers in the next couple of days, but we already have some important information in this respect.

The decision has been taken to have Scotcoin become an ERC compliant token. Our coin will have smart contract capability. We in fact have a coin running on the Ropsten testnet and expect to be able to deploy it in Alpha mode fairly shortly. There are other considerations to be taken into account, but at the very least we now have an actual beta test coin that covers what we require in terms of security, longevity and tradeability. As you probably know, Ethereum is the largest blockchain in terms of tokens sitting on it. There are other very good reasons for going down this route, quite apart from speed of transaction, the scalability and the minimal power use.

Firstly, the SEC has ruled that Ethereum (and its tokens) are NOT securities. The reasoning behind this is that the very nature of the blockchain per se – as a decentralised platform – means that no one is actually managing the token for profit. ICO considerations are somewhat different, but the baseline is that Ethereum (and Bitcoin eg) are exchange tokens with the same characteristics. Sales and purchases are NOT security transactions and therefore the SEC has no oversight. Scotcoin is and will be exactly the same.

Secondly, the basis of any blockchain covers 5 main points.

Number 1 is that it is ( or should be) decentralised. That means that no one person or small group of people can influence the profitability of the token. In essence a token has no inherent profitability – the pound in your pocket is worth a pound with no DNA to make it profitable and in excess of that £1. Number two is that the decentralised consensus means that everyone on the network has an identical copy at the same time. No one can “steal a march” on anyone else. Number 3 is that it is “add only”. You can’t alter or add to a block once it is complete. That means that number 4 new information CANNOT conflict with existing information. And finally number 5, everyone can access all the information on the blockchain simultaneously and instantly.

As a reminder, each “block” consists of three parts . The first is the hash that seeds the block, in other words the incoming hash or information. The second part is the data that gets entered into the block in other words the transactions that have taken place and are being entered to be recorded. And finally, the third part is a second hash, which is the outgoing hash covering not only what has happened in that particular block but all that has happened since block one. Just so you know we are very close to block 600,000 on the Bitcoin blockchain.

Another reason for going down the ERC route is that one of our 5 pillars for Scotcoin’s new blockchain is that it must have longevity and stability as well as security. The Ethereum chain ticks these boxes. There are already something like 250,000 tokens on it and it is the second largest crypto currency both by total market capitalisation and by daily volume.

It is frequently said that crypto currencies are a store of and do a very good job of transferring value. Why do we say that? What are the characteristics that cryptocurrencies share:

1. The supply of all the coins or tokens are clearly defined and publicly available.

2. They are permissionless: You can just download the software for free and start sending money across the internet.

3. They are self-sovereign: You don’t have to rely on a bank, payment service or other centralised organization to process the transactions. It’s all performed on the blockchain network.

4. They are highly divisible: You can divide every cryptocurrency into extremely small amounts, enabling easy day-to-day (micro) payments iup to 18 zeros after the decimal point.

5. They are extremely portable: Everyone can fly across the world carrying billions worth of cryptocurrency. Try doing that with real gold.

Other primary characteristics of cryptocurrencies are that they are interchangeable and censorship resistant — no governing authority can prevent any cryptocurrency user from spending their crypto.

Some of you may have heard of Luca Pacioli. He wrote the base treatise on what one would term modern accountancy in 1493 – yes over 520 years ago.

Quite apart from setting down the basis of double entry bookkeeping, which arguably brought about the modern financial world, what it did do was bring Trust to an area where skulduggery had been the norm. In essence, the blockchain and crypto currencies do the same thing in respect of modern finance – you can be sure that a transaction can be trusted if it is recorded on the blockchain. There does not need to be a third party noting the transaction for it to be trustable.

We at Scotcoin are particularly keen on the circular economy and heading towards Zero Waste. I am proud to announce a joint initiative to reward people using Zero Waste in Scotland. There are quite a few shops you can visit and we are putting in place a scheme to reward people who use Toogoodtogo, who recycle food. Quite recently an entire wedding for over 200 people was catered using their food. This is food that would otherwise go to landfill, but an enormous waste and cost to the shops that need to get rid of it . We will be putting up a list of those shops where you can earn SCOT for buying from them and where you can trade in your SCOT for products. Now that we very nearly have our new coin, we will also be offering other online products and services via the website tokenmarkets.com. Scotcoin will have it’s own dedicated sales site. In essence, by paying in Scotcoin you will receive up to a 30% discount on items.

One of the most important things that people need to realise is that Blockchain and its technology will put responsibility fair and square on the individual again. Lost your bank card? No problem, the bank will send you a new one. Forgotten your password? You can reset it. With crypto, NEITHER of those options are available. Where we have been used to other people and third parties backstopping us, none of that will exist. As a result we will have to be much less cavalier about what we do in relation to our wallets and Identity – because yes, Blockchain impinges on Identity as well.

Just in the last few weeks I’ve been reminded of this. We will shortly be putting up an article entitled “Time to pull on you big boy or girl pants” and it deals precisely with this problem.

So if you have a crypto wallet, make sure you have taken a photograph of the pass phrase AND written it down in not one but TWO different places. Lose that and you lose the wallet, the coins, everything. So make sure it’s safe. We will be offering a way, with the new coin, of securing your passphrase.

One of the questions I am frequently asked is why should I buy Crypto and/or Scotcoin? There are many good reasons, but there is one which does not get enough airing. That is that Crypto are a digital asset and as such have created a whole new asset class to have in the mix of your investments. This may not be of significance to lots of people, but it is a consideration which should not be ignored. The traditional classes (shares, bonds, properties, cash etc) now have another leg – digital.

Finally, in celebration of the fast approaching anniversary of the creation of Scotcoin on the Counterparty Protocol, we are running a promotion on our exchange which will give purchasers 50% off the cost. So whatever the number of SCOT you wish to buy, the cost will be cut in half during the period of this promotion. We have had some criticism of the fact that our exchange price has been higher than the DEX price. The coupon code, which we will be advising all our wallet holders of, is 50offat5. This will effectively bring the DEX price and our exchange price into line.

The other thing we are testing at the moment is the website I mentioned above which will take SCOT for product. If you have items you would like to sell, please get in touch with me . Similarly if you would like to test for us, please let me know.

Scotcoin MeetUp – Tuesday 15 October 2019

Join us for the next of our legendary meet ups – this time in EDINBURGH. 

Chat about cryptocurrency, pick up a copy of our book, find out more about the latest news from Scotcoin.

Meetup Date: Tuesday 15th October 2019 @ 6:30pm
Venue: Library Gallery, 1 Summerhall, Edinburgh EH9 1PL

BOOK HERE > Scotcoin Meetup

Meet Up: Avalon 8 May 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.

Development progress

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.

Networking Scotcoin

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 Meetup – 8 May 2019

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Date: Wed 8 May

Venue: Avalon, 25 Kent Road, Glasgow G3 7EH

Time: 6pm

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!

BOOK HERE

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Scotcoin Meetup talk – 26th February 2019

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.

Dundee Scotcoin Meetup

Dundee Scotcoin Meetup

Meet Up Dundee

Dundee networkingScotcoin expands into Dundee – meet us there!

Little bit of trivia for you:

Where (outside of the M8) does Scotcoin get most of its website hits from?

Of course, the big financial centres like London or oil/investment town Aberdeen get a mention… But a somewhat more humble hotbed of cryptocurrency is nestling in Silicon Glen – DUNDEE!

Why are we meeting in Dundee?

Home of innovation such as jute production and Dennis The Menace, it became famous as the birthplace of Lemmings and Grand Theft Auto, due to the innovative courses offered at the University of Abertay.

So it’s only fitting that we take the Scotcoin Show on the road and visit our supporters in Dundee!  Everyone is welcome, from those just wanting to set up a wallet, to Ethereum coders, and all in between.

DATE: 19 September 2017 @ 6pm

VENUE: Dundee MakerSpace, 5 The Vision Building,  20 Greenmarket, Dundee DD1 4QB

COST: Free – with pizza and beer!

CLICK TO MEET UP HERE

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Meet Up Q&A

Wednesday’s Meet-Up hosted at University of Strathclyde’s Business School had some really interesting questions from the crowd, so we wanted to share them:

 

  • What is the blockchain?
When people talk about “the blockchain” they are usually referring to the most famous blockchain’s Bitcoin’s blockchain. But blockchains can exist for all sorts of other purposes, and essentially it’s a distributed ledger to store information which is verified by consensus.
  • How do you value Scotcoin?

Scotcoin is valued on the price that people are willing to pay – just like any other traditional currency like UK£ or US$. People bid on prices and currencies go up and down in value. Scotcoin is listed on various worldwide exchanges, but the easiest way to get hold of Scotcoin is buying via our Exchange.

 

  • Why would people use digital currency as opposed to normal currency?

Traditional banking takes 3 days to clear and relies on manual checking by a third party (i.e. a bank) whereas digital currency is validated automatically within minutes on the Bitcoin blockchain so fraud is immediately obvious and there are low handling costs. Transaction fees are around 80p per transaction, whereas credit/debit card fees are often a percentage of the total purchase.

 

  • What’s your vision for how BTC and other digital currencies will be able to increase the speed of transactions to compete with regular credit cards?

Currently, the blockchain can only process a maximum of 12 transactions a second, whereas credit card processors can do up to 70,000 per second – so we have some work to do to increase the efficiency of the Bitcoin blockchain.

 

  • How do you see the upcoming hard fork in Bitcoin affecting you?

It won’t, we will go with majority consensus.