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Crypto Long & Short: No, Bitcoin Is Not in a Bubble

Commentators and analysts who say bitcoin is in a “bubble” show they don’t understand what the term means.

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Author: Noelle Acheson

China’s Blockchain-Based Service Network to Integrate Central Bank Digital Currency

The BSN expects to complete integrations with a total of 30 public blockchains this year.

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Author: William Foxley

Grayscale Raises $700M+ in a Day, Its Largest Daily Asset Raise Ever

In Q4 2020, the company raised $3.3 billion across its cryptocurrency investment vehicles.

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Author: Tanzeel Akhtar

Ripple is Hiring Director of Engineering for RippleX Platform

The planned new hire along with a recent expansion show Ripple does not seem deterred by legal troubles in the U.S.

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Author: Tanzeel Akhtar

Bitcoin’s Massive Swings Give Pause to CFOs Mulling Reserve Investment: Bloomberg

Bitcoin’s 30% price correction was enough to give some CFOs second thoughts.

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Author: William Foxley

Coinbase Redoing Infrastructure to Prevent Outages During Peak Times

The exchange also said it’s working to improve its customer service response time, another source of complaints.

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Author: William Foxley

‘You’re Starting To Democratize Access.’ Arca’s Jeff Dorman on Crypto’s Impact on Organizational Structure and Other Big Trends to Look for in 2021

A leading crypto investor on the year-ahead for bitcoin, NFTs, India and DeFi community tokens. Your host is Ben Schiller.

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Author: Ben Schiller

Coinbase to ‘decompose’ its application server in wake of recent outage

Coinbase says it will divide up its application server into separate services in an effort to “reduce the blast radius” following an outage last week that impacted the API used for the exchange’s website and mobile apps. 

The Coinbase team said Friday that by “decomposing” its application server, it could have different scaling profiles for the different functions the API serves. Thus, if one surface is affected somehow, it will only affect the APIs or functionality that the particular surface is responsible for, instead of taking down the entire system. 

The outage on January 6th and 7th was triggered by record-high traffic from crypto price movement, according to Coinbase, which led to “a thundering herd of requests.”

“Several of our downstream services were hit with traffic that they were underprovisioned for, and client retry behavior on the application server compounded the issue, rapidly issuing retry requests to the services,” the exchange said. “This retry storm prevented some parts of our app from functioning.”

The issue also happened because of problems with MongoDB clusters, which are responsible for handling the exchange’s high data volumes. Essentially, the MongoDB clusters were experiencing long delays when queried, causing newer queries to be further delayed. The team triggered a failover on these “unhealthy” clusters, which momentarily returned them to a healthy state. However, the clusters would regress back to unhealthy status within ten minutes. Thus, users were only able to use their apps for short periods of time. 

According to the announcement, the Coinbase team plans to break MongoDB clusters which carry “large discrete miscellaneous collections” into separate clusters, which will also make it harder to take down the entire system in the event something like this happens again.

Coinbase maintains that despite the server being overwhelmed, users were still able to buy, sell, and trade cryptocurrencies. 

The outage is one of several technical issues the exchange has faced in recent months, while also breaking its all-time-highs for volume

Most recently, on January 11, Coinbase Support announced that they were investigating an issue impacting transactions on their website and mobile apps. According to crypto on-chain analyst Willy Woo, buys on the exchange were not completing. “Coinbase is $350 lower than other exchanges right now, it’s throwing off derivative indexes and likely impacting trade algos,” he tweeted on January 11. However, Coinbase says this issue was not connected to the January 6-7 outage.  

In a separate statement also published Friday, Coinbase vice president of customer experience Casper Sorensen emphasized the exchange’s commitment to its users. 

“We know that we have let many of you down and we are doing everything in our power to turn the page,” he wrote. “Whether you’re a new user or have been with us since day one, we recognize this is frustrating. This is not the experience we want for you, our customers.” 

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Saniya More

‘America and Sound Money,’ the Most Important Bitcoin Essay of the Last Year

A reading of the “Stone Ridge 2020 Shareholder Letter” by Ross Stevens.

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Author: Nathaniel Whittemore

NYPD details its use of cryptocurrency transaction analysis in policy document

The New York Police Department (NYPD) published a six-page document that outlines its use policy for cryptocurrency transaction analysis last week.

The NYPD’s use of such tools, sourced from unnamed “approved vendors,” was not publicly known until now. The disclosure comes as part of a broader release of impact and use policies related to its surveillance capabilities. Last June, the New York City Council passed a bill requiring the NYPD to provide details on its use of such technology, including facial recognition software and drones.

In the document, dated January 11, the NYPD said that it “utilizes cryptocurrency analysis tools to automate the search for information associated with cryptocurrency transactions in furtherance of criminal investigations.” The NYPD  went on to say that such capabilities “must be used in a manner consistent with the requirements and protection of the Constitution of the United States, the New York State Constitution, and applicable statutory authorities.”

Per the policy document, the NYPD limits access to cryptocurrency analysis tools as well as the transaction data it collects.

As the report notes:

“Cryptocurrency transaction information isretained within an NYPD computer or case management system. Only authorized users have access to cryptocurrency transaction information. NYPD personnel utilizing computer and case management systems are authenticated by username and password. Access to case management and computer systems is limited to personnel who have an articulable need to access the system in furtherance of lawful duty. Access rights within NYPD case management and computer systems are further limited based on lawful duty.”

The NYPD document does not specifically detail the types of crimes it investigates using transaction analysis software. The NYPD has issued public warnings in the past about phone scams that involve bitcoin payments, and the police force was involved in an investigation in 2019 involving SIM swapping and the theft of $1 million in cryptocurrency.

Read the full impact and use policy document here:

Cryptocurrency Analysis Tools Nypd Impact and Use Policy Draft for Public Comment 01.11.2021 by MichaelPatrickMcSweeney on Scribd

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Michael McSweeney


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