Bitcoin Cash criticized: How decentralized are BCH Full Nodes really?

The Twitter account BitPico accuses the popular representatives of the Bitcoin Cash network, Roger Ver and Jihan Wu, of hosting full nodes via a centralized cloud server. What does this mean for the security of Bitcoin Cash?

Bitcoin revolution has many vocal opponents on Twitter

The crypto currency there is often called „BCash“, much to the chagrin of front man Roger Ver. The old-established Bitcoin revolution community makes it clear time and again that Bitcoin Cash is not „the real Bitcoin“. Now new accusations are circulating against Bitcoin Cash: Bitcoin Revolution Review 2018 » Full Scam Check

Full Nodes about Cloud Server: BitPico is a Twitter account of a group of Bitcoin developers, miners and whales. As they recently twittered, a stress test showed that many of the full nodes start with the same IP address:

Perhaps somebody from the #bcash $bch #BitcoinCash team can explain this? #cryptocurrency #blockchain #decentralized #magic #trick #fail @rogerkver @JihanWu If you are running a bitPico Cash stress test node please update your code ASAP. Thanks! pic.twitter.

Server farms, a single point of Bitcoin revolution

For the layman, it is not possible to see directly what the problem is. After all, it is healthy for the network to have many full nodes as tested here: A Full Node is a computer that has the entire blockchain stored. These entities play an important role in the network because they check the validity of the blocks produced by the miners according to the consensus rules. So the more full nodes there are around the Bitcoin revolution world, the more secure the network will be.

However, looking at the screenshot you can see that many Full Nodes have an IP address of This is an indicator that they are in the same place. Probably this is a rented server farm where someone runs Full Nodes.

Only eleven minutes after BitPico’s tweet, 800 full nodes were banned. Krypto-OG, DanDarkPill, expresses itself ironically with a Star Wars reference on the subject:

While it’s good that there are many full nodes on the network, it’s problematic if they’re all in the same place. If they are hosted on the same service, the total number of nodes is deceptive when it comes to the degree of decentralization. An environmental disaster or a service provider could quickly ensure that a large number of full nodes are no longer part of the network. A spatial concentration of nodes also gives rise to fears that the block chain will then be under the control of a single party. All in all, a concentrated number of nodes in a single server farm therefore conflicts with the desired decentralization of a crypto currency.

US government wants to fight crime with crypto currencies

There are only two weeks left from 2016 and bitcoin seems to be busy „catching up“. For a long time analysts have predicted that bitcoin would reach 800 US dollars by the end of the year. Looking at the last few days, this could become reality. Currently bitcoin is trading at 791 dollars and is therefore only 9(!) dollars away from this hurdle.

But not everyone celebrates this cryptosoft review

The US government is still hanging around with the idea that bitcoin is the most popular cryptosoft review for criminals and terrorists. And they are most likely to use the digital currency for their atrocities.

However, some representatives believe that terrorists could create a cryptosoft review that is so anonymous and powerful that there is no way to find out the identity of the co-conspirators. (Editor’s note: Monero, Zcash, ShadowCoin…?)

Joshua Baron, theoretical cryptographer and mathematician for Rand Corp., shares his knowledge with a US government think tank. His mission? Find out if the enemies of the nation want to create such a currency. Currently, there is no evidence that anonymous money is being developed in this form.

Crypto trader scam crime is relatively low in the United States

„We are trying to find ways for the government to prevent crypto trader scam with onlinebetrug and new virtual currencies for terrorists, non-state actors and separatists,“ he said.

Juan Zarate, senior consultant at a Washington think tank center for strategic and international studies, worked on the problems of transparency in digital crypto trader scam currencies. He has actively fought money-based crime in the crypto sector. In 2003, he led a team of Treasury experts to freeze personal accounts of American enemies to „provoke trouble“. He explained that the model they have introduced prevents major crimes and that the government does not have to worry too much.

„We have now made it very difficult for members of the Islamic state to receive money or send money around the world,“ he said. „Even Iran has difficulties.

First, Treasury officials will observe and let pass the development of bitcoin and other crypto currencies. However, they keep a critical eye on the development in order to be present in time if something unusual happens.

„Such anonymous money does not yet exist? Let us please remember the security theatre for Zcash. There I ask, among other things, the following question: ‚The federal government does not want the surveillance of WhatsApp and Co. nation states to be seen as potential attackers of this currency? At the time I wrote this article, it was just a logical conclusion. That after a little more than half a month we see more or less evidence of such activities, frankly surprises me.

It’s not as if I didn’t expect it. Rather, I wonder how quickly such information comes to the public and how here it is more or less ’said by the flower‘ that anonymous digital currencies can be seen as a terrorist weapon.“

Starta ICO Analysis: A Bridge between the USA and Eastern Europe

„Venture capital“ has become an everyday term in recent years and we are currently experiencing a boom phase in start-ups. The startup euphoria and the need for venture capitalists are also increasing in Eastern Europe. Starta wants to invest in Eastern European start-ups and aim for exits to major investors in the USA.

What is Starta’s goal?

The idea behind Starta’s „Accelerator 16/17“ project is to invest primarily in the early stages of start-up companies in Eastern Europe. Many start-ups still have problems obtaining sufficient venture capital in important phases if they do not have an appropriate network of VCs. Therefore, Starta invests smaller sums and supports the founders with its own programs to build up their company.

If the company grows strongly, then an exit to other VC’s should take place, since these usually have start-ups in later phases in view. Starta would like to build a bridge between Eastern Europe and the USA, because there is a much larger stock of venture capital in the latter region.

The Eastern European region could be a useful region for this project, since the VC culture, as it exists in the US, for example, is less pronounced here. Ultimately, the Early Stage Accelarator ensures that the start-ups are built up through financial injections and mentoring and that an exit in the USA is subsequently promoted.

How does the Starta ICO work?

Starta would like to raise capital for the project through the ICO and issue its own tokens in cooperation with Cross Coin. The Singapore-based partner Cross Coin will then acquire a 33 percent stake in Starta Accelerator 16/17 LLC. Those who participate in the ICO will receive the Cross Coin Tokens. The pro rata winnings will then be distributed to the token owners via the partner Cross Coin.

The Starta Accelerator 16/17 holds 21 „post product“ startups, i.e. young companies whose idea has already left the conception phase. Exact details on the individual start-ups are explained relatively openly by Starta in the corresponding whitepaper of the project (see below).

Up to 1.5 million US dollars will flow directly into the 16/17 fund, and any additional amounts will be invested in Starta’s future accelerator programs.

The Starta Blockchain
The relation to the Starta blockchain is rather small – this project does not focus on the technical sophistication of the blockchain technology, but rather on a new type of funding, which is carried out with this ICO. The tokens are used exclusively to carry out the buy-back programme digitally as simply and as cheaply as possible. This doesn’t have to be a bad thing, but this ICO is a comparatively less technical project.

The team
The team seems to be very experienced at first sight: The members promise years of experience in leading positions and in the VC sector. If you get up close and personal with Roy Weissman, you will indeed find a verifiable record track – with small flaws:

Roy Weissman

Weissman is Vice President Business Development at Octopus, an American media agency. The company’s website greets with the face of Weissman. According to Weissman, the company has already worked with partners such as Amazon.

At Starta, Weissman has been acting as Sales and Business Development Advisor since August 2016.

He mentors the „Protokol App“ project, a tech startup. This had received a funding of approx. 130,000 US dollars from Starta. Although this did not take place until January 2017, the project website, which is currently not accessible, appears less professional.

Weismann is also Vice President of Sales at SendPulse, a startup for professional email marketing that makes use of artificial intelligence (AI). In fact, Sendpulse’s services are already relatively well known. Although Weissman’s work at SendPulse is predominantly sales, it is likely to be at least a proof of his affinity with tech start-ups.

Investment Summary