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‘Very Sad’: Lightning Torch Creator Laments Exclusion of Iranian Bitcoin User

The Lightning Network (LN) faced unusual censorship allegations this weekend after it emerged a participant in the Lightning Torch event refused to include a member from Iran.


Sending Transaction To Iran ‘Very Difficult’

In a debacle which continues to unfold on social media, Coinex executive Ziya Sadr confirmed Peach Inc. senior software engineer Vijay Boyapati declined his request to be involved.

Lightning Torch is a transaction relay in which users join or use LN to receive and contribute to a single Bitcoin (BTC) payment.

Similar to the Olympic Flame, the Torch has gained considerable publicity since it began in January, involving the likes of Twitter CEO Jack Dorsey and Blockstream CEO Adam Back.

iran

As a US resident, however, Boyapati expressed concern that ‘sending’ the Torch – which in reality involves sending a payment – to Sadr would draw the attention of authorities. Iran is currently subject to a host of new US economic sanctions.

“I really really REALLY wanted to send it to (Sadr) but US law makes it very risky for me as a citizen,” he claimed.

Very sad that two peaceful people cannot transact with each other across the world because of the state.

Bitcoin Doesn’t Care?

Sadr responded by avoiding calls to label Boyapati a “moron” for his decision, only confirming the legitimacy of the events.

The Twitter user known as hodlonaut, who started Lightning Torch, described Sadr’s predicament as “very sad.”

The Torch currently resides with Adam Back as of press time Monday. He joined the list of holders behind Charlie Shrem and major US broker Fidelity, which accepted it last week.

Lightning itself continues to grow, with momentum building to take the network’s overall capacity to an all-time high of almost 725 BTC ($2.74 million). The size of the Lightning Torch transaction, by contrast, is 3.6 million satoshis ($137.13).

What do you think about Vijay Boyapati’s decision? Let us know in the comments below!


Images courtesy of Shutterstock

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China’s Internet Censor to Start Regulating Blockchain Firms Next Month

China’s internet censorship agency has approved a set of regulations for blockchain service providers in the country that will take effect in mid-February.

The Cyberspace Administration of China (CAC) published its new “Regulation for Managing Blockchain Information Services” on Thursday, defining blockchain information service providers as “entities or nodes” that offer information services to the public using blockchain technology via desktop sites or mobile apps. The rules become official on February 15, according to the release.

Among the 23 articles listed in the document, one requires blockchain service providers to register with the CAC within 10 working days of starting to offer services to the public.

The agency also mandates that blockchain startups must register their names, service types, industry fields and server addresses. Further, it bans startups from using blockchain technology to “produce, duplicate, publish, and disseminate” information or content that is prohibited by Chinese laws.

If blockchain startups fail to comply with the rules, the CAC said it would first issue a warning, while failure to act within the specified timeline would bring a fine ranging from 5,000 yuan ($737) to 30,000 yuan ($4,422), depending upon the offense.

The CAC first published draft rules in October of last year. At that time, one of the articles also recommended that blockchain startups operating in fields such as news reporting, publishing, education and the pharmaceutical industry must also obtain licenses from relevant authorities prior to registration with the CAC. The final rules have dropped this article altogether.

Previously, blockchain technology has been utilized to bypass China’s strict internet censorship – often dubbed “The Great Firewall.” For example, as part of the #Metoo movement and a recent pharmaceutical scandal in the country, individuals posted information on the ethereum blockchain to avoid censorship.

China flags image via Shutterstock 

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Major American Magazine Time Column Reports About Bitcoin’s Liberating Potential

Mainstream newspaper Time published an article illustrating the liberating potential of Bitcoin, especially in countries with oppressive governments.

Bitcoin (BTC) has a substantial liberating potential, American mainstream newspaper Time reports on Dec. 28.

The aforementioned article claims that “speculation, fraud, and greed in the cryptocurrency and blockchain industry have overshadowed the real, liberating potential of Satoshi Nakamoto’s invention.”

According to the article’s author, Bitcoin “can be a valuable financial tool as a censorship-resistant medium of exchange.”

Alejandro Machado, a cryptocurrency researcher at the Open Money Initiative, reportedly said that the fee on a wire transfer from the United States to Venezuela can be as high as 56 percent.

To circumvent such conditions, Venezuelans have reportedly turned to cryptocurrency, receiving Bitcoin from their relatives abroad. The main alternative is to wire money to Colombia, withdraw and bring cash to Venezuela, which according to the article, “can take far longer, cost more, and be far more dangerous than the Bitcoin option.”

Times suggests that Bitcoin is a good way to protect oneself from fiat currency inflation. Venezuela is prime example of that, with the inflation of their native currency projected to top 1 million percent. But there are also other similar examples, like Zimbabwe, where former president Robert Mugabe “printed endless amounts of cash.” But the author points out:

“His successors can’t print more Bitcoin.”

Bitcoin is also, according to the article, a tool to evade mass surveillance in places like China. That being said, as Cointelegraph reported in March, according to U.S. whistleblower Edward Snowden, Bitcoin isn’t optimal for avoiding government coercion, and he believes that the world needs a better option.

Times also points out the advantage given by the inability of governments to censor transactions or freeze Bitcoin wallets. In fact, Cointelegraph reported in April that WikiLeaks’ Coinbase account has been suspended due to a term of service violation.

Still, nobody can prevent WikiLeaks from using cryptocurrency wallets where the organization controls the private keys. In fact, WikiLeaks is still accepting cryptocurrency donations and also added support for Snowden’s favorite crypto Zcash in August 2017.