THE ADOPTION of crypto blockchainpayment solutions is occurring acrossmultiple sectors. However, to date

there has been no accessible and cost-effec-tive way to transact in micro amounts,something that is particularly important inhigh volume low margin transactions. Thishas now changed.

SatoshiPay, a UK registered company runby a team of international technology andpayment specialists, has developed a solu-tion providing a frictionless global micro-payment infrastructure based onblockchain technology.

CEO Meinhard Benn said: “On the internetit was impossible to make payments of 1cor less. By using peer-to-peer blockchaintechnology, we have solved one of the long-standing problems of the commercial web:processing high volumes of low value trans-actions.”

These transactions have previously beencommercially unfeasible primarily due tothe level of fees that are paid to third par-ties, bad usability and high transactioncosts. With existing bank infrastructureservice providers charging base fees of 10-30p per transaction plus a percentage, itmade it difficult for digital vendors to main-tain viable micropayment business

models. With SatoshiPay, the paymentamounts start from as little as a fraction ofa pence, enabling the company to strategi-cally position itself to take advantage of anestimated $10bn fee market.

Benn continued: “In essence, SatoshiPayis a digital “pocket change” wallet for theweb, where internet users can pay smallamounts, starting from as little as 1p, forweb content like articles, blog posts, music,podcasts and videos. People spend billionson micropayments in video games. We’vecreated a similar user experience for the

infrastructure platform for micropay-ments. To achieve this goal, SatoshiPay isdeveloping complementary solutions tosupport different sectors.

Benn summarised: “Payments for digitalcontent are just the start. We've built ageneral-purpose micropayment infra-structure that will allow payments in manydifferent industries, like the Internet ofthings, retail or public transport. In the future third-party developers and businesses will be able to build theirown micropayment products on top of our platform.”

web, and this will unlock a whole new set ofrevenue streams starting with publishers.”

Initially targeting digital content creators,SatoshiPay allows individuals to pay forweb content that they want to consumeand allows publishers to monetise theirdigital assets in tiny increments and with-out friction. Thousands of online publish-ers have already signed up for the service,including UK’s most-read tech blog TheRegister. One of the backers for the com-pany is Axel Springer, one of Europe’sbiggest media houses.

SatoshiPay is supported by several major

core infrastructure and service providersincluding blockchain provider Stellar De-velopment Foundation and card paymentscompany TransactWorld. Notably, as partof the partnership with Stellar, SatoshiPayhas been granted to distribute 50,000,000Stellar Lumens, currently worth more than£7m in total, as part of a series of giveawayprogrammes to encourage uptake of Sato-shiPay by end users.

Notwithstanding SatoshiPay’s initial suc-cess in media, the company has a clear vi-sion aimed at increasing its reach andbecoming the industry standard payment

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22 TUESDAY 18 SEPTEMBER 2018FEATURE CITYAM.COM 23TUESDAY 18 SEPTEMBER 2018 FEATURECITYAM.COM

adapt and find an alternative digitalcurrency. Monero might not have en-tered the mainstream until 2016, butit is slowly becoming the most usablecryptocurrency for criminals so far.Its private ledgers hide both the ori-gin and amount of the transaction,making it completely untraceable.Criminals can freely send Monero toany address and then cash it out without the need to launder their ill-gotten gains.Monero is also unique in that it can

be mined profitably using regular

TEN YEARS ago on 15 September 2008Lehman Brothers filed for Chapter 11bankruptcy protection to the tune of

$600bn (£456bn) and remains to date the largestbankruptcy in US history. It’s an importantlandmark because the 2008 global financial crisis wasthe primary inspiration for Satoshi Nakamoto’s Bitcoin whitepaper, paving the way for the Blockchain and Cryptoindustries as they are today.The Crypto market has been going through its own pain thisyear but seems to be stabilising with a market cap of circa$200bn, Bitcoin settling at around $6,500 and Ethereum’sprice slide halting around the $220 mark. Mike Novogratz ofGalaxy Digital suggested the market has hit a bottom in histweet on 13 September. The following day Tim Draper,another major industry figure and venture capitalist,predicted that the total market capitalisation should hit $80trillion in the next 15 years. For this to happen it is essential, inmy view, that we see institutional and mass adoption.Although there is a general feeling of hurry up and wait, onearea where there is movement is with stablecoins(cryptocurrencies pegged in value to a stable asset such asgold or the US Dollar). Gemini cryptocurrency exchange,having had its Bitcoin ETF application rejected, did getapproval last week for the Gemini dollar. Clearly aimed as acompetitor to Tether (‘USDT’), Cameron Winklevoss wrote:“To date, there has been no trusted and regulated digitalrepresentation of the US dollar that moves in an open,decentralised manner like cryptocurrencies.” He went on tosay: “The Gemini dollar (‘GUSD’) combines thecreditworthiness and price stability of the US dollar withBlockchain technology and the oversight of US regulators,namely, the New York State Department of FinancialServices.” Hot on the heels of the Gemini ‘good news’ story, aregulated custody solution has finally arrived, as reported inOff the Chain with Anthony Pompliano. “BitGo, a Blockchainsecurity company, received a state trust company charterfrom the South Dakota Division of Banking late last week.This milestone cements BitGo as the only qualified custodianin the United States built exclusively for digital assets.”Closer to home, the Blockchain International ScientificConference (BISC) 2019, from the British BlockchainAssociation (BBA), is gearing up and seeking papers, panelistsand speakers from the Blockchain world. Researchers,academics, technologists, Blockchain developers, policymakers and other stakeholders are welcome to submit theiroriginal research papers, pilot projects and case studies toBISC 2019.

CPUs inside personal computers, andphones, instead of requiring specialised hardware, sparking yet another trend for criminals: crypto-jacking.In cryptojacking, cybercriminals

don’t have to deliver a single piecemalware to profit. Instead, crypto-jacking targets websites to hijack vis-itors’ computer power to mineMonero for the site’s owner. This new trend has been gaining

momentum since CoinHive first de-buted the mining JavaScript in Sep-

tember 2017, and has even been usedon legitimate websites as an alterna-tive to serving up annoying sidebarads. This isn’t money out of thin air,

though as users are still liable fortheir computer’s power usage, thecost of which shows up in their elec-tricity bill. While the spike in electric-ity bills may not be especiallynoticeable on an individual level, thecryptocurrency adds up fast for siteowners who have a lot of visitors.While CoinHive’s website explained

that this was simply an ad-free wayfor website owners to generateenough income to pay for the servers,it’s clear cybercriminals are abusingthe tactic. All a criminal needs to do is inject a

few lines of code into a domain theydon’t own then simply wait for vic-tims to visit that webpage and gener-ate clean profits in the form ofcryptocurrency. In the first half of thisyear Webroot has blocked over 12mwebpages compromised with theCoinHive JavaScript to mine Moneroby hijacking site visitors’ CPU power. The amount of labour and illegal

footprint is minimal compared withransomware, making cryptojackingtoday’s #1 threat.Cybercriminals are always looking

for new ways to get ahead. Theyutilise a vast range of tools to extortfunds, and the evolution of cryptocur-rencies has provided them with a lowrisk new means of pocketing fundsfrom illegal activities. To avoid falling foul of their

schemes, users should ensure thatthey take security seriously. Thinktwice before opening that email orclicking that link, or you might findyourself an unwilling cryptocurrencyinvestor.

Author: Tyler Moffitt, Senior Threat ResearchAnalyst

FOR YEARS, cybercriminalshave been experimentingwith new ways to steal and ex-tort money from victims.More recent trends

involve the boom in cryptocurrency.Here, Tyler Moffitt, Senior Threat Re-search Analyst at Webroot, exploresthe relationship between cybercrimeand cryptocurrency. Basic ransomware attacks, where a

cybercriminal demands payment inexchange for something they’vetaken from your computer, have beenaround since the mid-noughties.Early iterations would impersonatethe FBI and demand payment to avoidexposure of nefarious activities theyclaimed victims had been doing. Butas technology, digital currency andonline payments have evolved, sohave the tactics used by cybercrimi-nals to extort money. In the FBI scam days, the anony-

mous online market Silk Road was appearing and experimenting withBitcoin as its chosen currency. The un-derground black market, hidden onthe Dark Web, was the ideal place to

acquire goods and conduct illegal activities away from law enforcementeyes. For years, the marketplacethrived and proved that Bitcoinworked well for monetary transac-tions and transfers. All of that ended when the FBI

seized Silk Road and arrested itsfounder in 2013. The site was shut-down and the value of Bitcoin took asharp dip. However, it didn’t take longfor Bitcoin to bounce back, and sincethen it has seen several booms that re-

sulted in eyewatering values. But cybercrime has played its part. Sophisticated encrypting ran-

somware (where hackers obtain ac-cess to precious files or photos andlock them down) entered the sceneshortly after Silk Road’s demise. Ini-tial attacks proved hugely successful,and new ransomware variants contin-ued to emerge to infect millions of in-dividuals and businesses around theworld. While early editions accepteda range of payments, they actively encouraged the use of Bitcoin by of-

fering a “discounted” ransom.This became the start of cybercrimi-

nals preferring cryptocurrency overpreloaded cash cards.As ransomware became the number

one online threat, Bitcoin also saw amajor increase in activity, in whichthe payment of ransoms will haveplayed a contributing part. However,the public ledger system that Bitcoinis built upon meant that addresseswere linked to criminal campaigns resulting in a number of arrests. Thereafter, criminals looked to

Designed byPhill Snelling,Bowater Media

IMPORTANT INFORMATION:THE VIEWS ANDOPINIONS PROVIDED BY CITY A.M.'S CRYPTOINSIDER ARE OF THOSE NAMED IN THE ARTICLEAND SHOULD NOT BE TAKEN AS INVESTMENTADVICE. THIS COMMUNICATION IS MARKETINGMATERIAL.

In association with

Jai Bifulco,Chief Marketing Officer of Kinesis ICO, Blockchain and Cryptocurrency Expert

CRYPTOCURRENCY and blockchaintechnology have presented a uniqueopportunity to change the manner in

which the world transacts. What makesmoney successful and sustainable is thedegree to which it is an efficient medium ofexchange between two parties as well as astable store of value.This definition is supported through the

economic principal of Gresham’s lawwhich defines the concept “bad moneydrives out good”, which suggests whendealing with two currencies, individuals arelikely to spend the currency they deem lessvaluable adopting a pattern of ‘hoarding’for that which is deemed more valuable.This can be observed within the crypto

sphere as volatile markets cause

individuals to react similarly as they holdcryptocurrencies in hope for positivegrowth.Gold has been valued by civilizations all

around the world for thousands of years,maintaining its status over time as themost effective store of value the world hasever seen.Gold and crypto are both stores of value,

however unlike major cryptocurrenciesgold is a stable, where crypto is not. Cryptois a fairly efficient means of exchange,unfortunately it can be slow, expensive andof course with the wild volatility, peoplechoose to hold more often than spend. A system which is able to bring together

the pros of both gold and crypto, whilstminimising the negative consequences just

like the Kinesis Monetary System canrevolutionise the money as we know it.Cryptocurrencies, such as Bitcoin and

Ethereum are systems whose value isbased on the digital supply of thesecurrencies; Attempt to replace the currentfiat-based system with a digital currency,however both lack intrinsic value.Precious metals ensure a stable store of

value, whilst maintaining the security,transparency and integrity of theblockchain. Before we find out whether ornot that is the case, we remain spectatorsof a race to find the winner who is able tobest utilise blockchain technology to solvethe problems of today. We do encouragethose interested to investigate how KinesisMoney is achieving this monumental task.

CITY A.M.’SCRYPTO INSIDER

Crypto A.M. Shines itsSpotlight on SatoshiPay

@CityAm_CryptoE:CryptoInsider@cityam.com

THE BEST OF BOTH WORLDS:GOLD AND CRYPTO

JAMES BOWATER

PARTNER CONTENT

Our series on AI, Blockchain, Cryptocurrency and TokenisationCRYPTO A.M.

Blockchain helpsus to remove one

of the biggestobstacles for

micropayments –mental

transaction costs

Cryptojacking isthe newest way forcybercriminals togenerate money

CRYPTO ANDCYBERCRIME – A MARRIAGE MADE IN HEAVEN?

As we enter this new season, lookingback over the last seven years it’s not dif-ficult to see how Crowdfunding hastransformed both innovation and entre-preneurship, providing an open door,open access to the open market, for start-ups and ventures of any size.Meanwhile Fintech has begun to prise

open payments and, to a limited extent,the financial system, by starting to bringsome of the gains of technology to cus-tomers rather than ignoring them orpocketing them as cost-savings for in-cumbents.Over the last seven months ICOs and

other Token Offerings have raised moremoney than Crowdfunding over thoseseven years.But in terms of innovation, and its im-

pact, Crowdfunding 3.0 goes far deeperas the Token Crowdfund takes its placebeside equity, donations, ‘rewards’ andCrowdlending - dwarfing them all.By our count at TokenIntelligence.io

there are now well over 2,500 tokens andcoins. Even allowing for a high attritionrate, to be expected among startups andespecially those attempting high innova-tion, that means there are now morethan 300 well funded, independent ven-tures seeking to disrupt and decentralise.While the trend is now to work with

the VCs, who’d previously have been call-ing the shots but have been scrambling

aboard a train they can see is out of theircontrol, they no longer monopolise anddominate the agenda.So it is that, even were all this to change

tomorrow, there are around 300 disrup-tors, primed and funded, seeking to dis-intermediate.My most recent interview with one was

with Zwoop, which calls itself a ‘Find En-gine’ seeking to end the ripoff of biasedecommerce, and claims to be able to getyou there - including past the hype andhighest bidder to the best deals - in a frac-tion of the time... from minutes search-ing for the best deal to seconds.Meanwhile sharing the fruits of yourdata (allowing you to opt out if you pre-fer) with you.In this case not a mere idea but a ven-

ture already funded and with a trackrecord, MVP and, indeed, beta platform.Zwoop are typical of the disruptors, in-

novators and pioneers I have interviewedover the last 33 episodes and sevenmonths on ICOrad.io. Other notables in-clude DESICO, Kinesis, CosmeCoin, andinventor if the ICO J.R.Willett.Initial excitement may be abating

somewhat as we head out of summer butaround 300 innovation time-bombs areticking - at an ever increasing pace.

More on this via ICOrad.io. PleaseTweet/Telegram your questions to @BarryEJamesor listen at ICOrad.io.

Crypto Challenge Forum is the world's majorindustry event. It will take place on 28th –30th October 2018 at the iconic Central HallWestminster, London, connecting globalthought leaders, policy makers, investorsand startups from across the world for athree-day top content event. It will beattended by the industry leaders, think tanks,institutional and private investors, familyoffices and VC firms. The forum is privileged to have some of the

world’s most authoritative speakers, some ofwhom are global transformers.Split across three tracks, the Forum’s

agenda will address a range of global issuesincluding the Future of Digital Investmentand Regulatory Framework of the Crypto. The Forum will see an unprecedented

agenda «The World’s Ecosystems and CryptoInvestment» where a whole track will begiven to crypto friendly governments whowill be showcasing their ecosystems andhighlighting their Blockchain initiatives.Global announcements are expected to bemade.

A distinctive feature of Crypto ChallengeForum is the Investors’ Hub – an exclusivenetworking area where the brightest startupswill have access to decision makersrepresenting participating investment funds,VC firms and family offices, with a total of 70BUSD under management.An ICO contest with 100k prize pool to be

distributed in three prizes will be heldalongside the two day exhibition in the Hall'slobby.Last, but not least, the Forum abounds in a

rich networking programme ranging frompost-conference receptions to private VIPretreats. It will culminate in the black tieHalloween Gala & Awards Giving Ceremonyat the renowned 8 Northumberland Avenue. The Gala will feature award giving in a

variety of nominations including, inter aliaCrypto Challenge Forum 2018 MostInnovative Regulator of the Year, 2018Blockchain/ Crypto Investor of the Year andICO Advisor of the Year.

www.cc-forum.com

ICO NEWS

CRYPTO CHALLENGE FORUM 2018

Crowdfunding 3.0 & 300 Time Bombs a’Ticking

Blockchain and the Future of Humanity:Economy. Environment. Ethics

Meinhard Benn, CEO of SatoshiPay