Meta Description: DasCoin: What Bitcoin started almost a decade ago could soon change—almost entirely except for the blockchain technology
When Satoshi Nakamoto invented Bitcoin almost exactly a decade ago, he (she or they) might not have predicted the cryptocurrency would receive as much massive adoption as it has in the last couple of years.
CoinMarketCap estimated Bitcoin to be the most valuable cryptocurrency with over $250 billion in market capitalization in the starting week of 2018.
According to what is believed to been a white paper Satoshi Nakamoto crafted, Bitcoin was intended as a peer-to-peer, digital assets transfer network.
Users could also make transactions anonymously, away from the supervision and interference of governments and financial institutions. Moreover, users could do all these directly with and to other users without need for a central entity to make policy and more.
However, over the last four years a flurry of have led industry experts and investors to wonder about the strengths and weaknesses of Bitcoin.
Others have since wandered off to new top cryptocurrencies offering more than a peer-to-peer, anonymous cryptocurrency network.
For example, scaling or adding new features to Bitcoin requires unanimous vote from millions of users globally—a tough order that directly saw the premier cryptocurrency fork out to produce Bitcoin Cash in 2017.
Reaching a beneficial decision among millions of users can be a problem with Bitcoin. No one is directly responsible for what happens to the cryptocurrency, except for an automated blockchain algorithm created 10 years ago by a never-seen Satoshi Nakamoto.
Vested interests among blocks of current and future users come in the way of progress.
Over the last four years, the meteoric rise of cryptocurrency has fueled digital money laundering, including drug money. The anonymity, un-regulated and demand-driven aspects of Bitcoin-like cryptocurrency have provided the main attraction to financial crimes and cyber bullying.
But as international anti-money laundering bodies such as the Financial Action Task Force (FATF) issue intergovernmental regulatory measures to curb cryptocurrency money laundering, the anonymity and unregulated features of Bitcoin could be seeing the last of hay days.
Does that mean the very cryptocurrency features that have led to mass adoption could be transitioning to a cryptocurrency 2.0 evolution involving?
The Allure of the Authenticated Blockchain Model
Newer cryptocurrencies like DasCoin are hinging their futures into compliance with financial regulations. Countries such as the US introduced measures aimed at the cryptocurrency industry as far back as 2013.
Over the years, and especially so in 2017, more countries have endorsed the movement to regulate the fast-rising digital currency market. Some countries such as China, US as well as the European Union have already banned digital currencies that are not willing to comply—which might include Bitcoin in the future.
The two main areas of regulation the new cryptocurrency policies are aiming at include:
- User Authentication
According to bodies such as the FATF, industry players have to use Know Your Customer (KYC) protocol to verify users are who they say they are. KYC is a banking-gauge protocol for authenticating users’ identity.
The purpose is to ensure network users are not hiding behind the veil of cryptocurrency anonymity to commit illegalities. However, as practiced in the banking system, user details are to remain confidential to other network users for security.
For example, compared to Bitcoin, DasCoin requires all members to authenticate their identifies during the sign up stages using standard KYC verification.
With transparency the industry hopes fraudsters can keep off the cryptocurrency industry.
- Anti-Money Laundering (AML)
Recently, Europol unwrapped a network of drug money launderers that has used at least 174 accounts to run a drug ring. According the authority, more drug and human traffickers continue to explore cryptocurrency as a safe-haven for criminal transaction.
With an unregulated yet secure and anonymous ecosystem, cryptocurrency money laundering and related crimes such as human trafficking, could persist unchecked.
Could the switch to authenticated, AML compliant and centrally managed cryptocurrency firms and concepts be the new cryptocurrency frontier?
Final word on DasCoin and cryptocurrency
Current developments in the cryptocurrency world could indicate an ongoing cryptocurrency evolution. And while industry pioneers such as Bitcoin may still appeal to many investors, more prospects and experts alike are finding newer cryptocurrency solutions to offer more than an anonymous, peer-to-peer transfer service they can use better.
The likes of DasCoin are offering entire ecosystems with central entities, verified users and extended blockchain infrastructure to support multiple aspects of the particular network.