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Ethereum [ETH]: Projects trying to use Casper will never deliver, says Pyrofex’s Nash Foster

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Ethereum [ETH]: Projects trying to use Casper will never deliver, says Pyrofex's Nash Foster
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Nash Foster, CEO and Co-founder of Pyrofex corporation, recently claimed that Ethereum and RChain’s Casper proof-of -stake [PoS] consensus mechanism failed to address an important aspect of the protocol called ‘liveness.’ He further contended that Pyrofex developed a better consensus protocol than the Ethereum network.

According to Foster, CDelta [leveraging consensus algorithm Casanova], which will initially be dedicated for settling transactional payments, is scalable even without second layer solutions.

In a recent interview with a crypto and blockchain portal Incenti News, Foster explained,

“Casper’s problem is that it’s quite easy for the mechanism to get stuck. It’s like a kid who can’t decide between chocolate and vanilla ice cream and goes back and forth perseverating over which one it wants. Now, in the analogy, your mom eventually yells at you to make up your mind, but in the blockchain, there is no ‘mom’ to do that and the Casper mechanism can get stuck.”

Liveness basically implies that a network is able to come to a consensus regarding an executed transaction, even when the network is broken. The research team of Pyrofex published a paper based on a consensus algorithm called Casanova, calling it superior to Ethereum’s Casper protocol and describing it as ‘scalable, safe, and reliable’ in real-world conditions.

Talking about the consequences if the protocol was not revamped, Foster stated that reliable networks riding on the protocol will become difficult. He also said that the network will work for some time before breaking down.

The CEO further stated,

“I think the result will be that projects trying to use Casper will never deliver. They’ll keep trying and trying and never be able to make something that works well enough to launch it. And of course, that’s what we have seen so far. So, this shouldn’t be very controversial.”





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QuadrigaCX Curtain Call Part 3: Private Jets, yachts, a major bombshell and maybe a biopic?

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QuadrigaCX Final Call Part 3: Private Jets, Yachts, a major Bombshell and possibly a biopic?
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Ernst and Young, the audit giant, the court-appointed third-party monitor and now the bankruptcy trustee of the QuadrigaCX proceedings, released its fifth report on the QuadrigaCX episode. Part 1 & 2 of AMBCrypto’s coverage can be found here, and here.

The TOYS

Gerald Cotten did what any fraudster would do; swipe all the money from his business, use it to enrich himself and his family and fail to pay anyone affected. The monitor was unable to ascertain any “records in respect to fees or compensation” paid to anyone by the exchange. Further, Cotten did not file tax returns in 2014, 2015 and 2017. However, in his statements from 2016, no income from QuadrigaCX was claimed.

The report identified several fiat transfers between Cotten and his wife, Jennifer Robertson, and the duo acquired significant “real and personal property” either personally, or via third-party corporations. Cotten and Robertson also frequented various vacation destinations using private jet services. No other income apart from the funds emanating from QuadrigaCX was used for these lavish adventures, the report said,

“The Monitor has been advised that neither Mr. Cotten nor his wife had any material source of income other than funds received from Quadriga.”

An Asset Preservation Order placed on Robertson and her property by the monitor in April listed out the assets as real properties in Nova Scotia and British Colombia, securities, cash holdings, a “personal sailing vessel,” a “personal aircraft, “several luxury vehicles,” and gold and silver coins with a total value of $12 million.

The EXPERT

Evan Thomas, a commercial litigator who delved deep into the QuadrigaCX case, stated that the ability of the exchange and its CEO to carry out such fraudulent acts right under the noses of the authorities and its customers stemmed from its lax internal governance. Cotten made sure that the administrative activities would not be logged. The litigator stated,

“Quadriga apparently had no internal controls or accounting records, no segregation of customer assets from Quadriga’s assets, and no visibility into its own profitability, ever.”

On the topic of the funds’ movement between QuadrigaCX and the aforementioned unnamed exchanges, Thomas stated that Cotten may have used fake accounts under pseudonyms to avoid suspicion and then credited these accounts with fiat and cryptocurrencies which were then “used to trade against the Quadriga users.”

Thomas stressed the link between the Markay account and the competitor exchanges where Gerald Cotten was known to control accounts under different names. He stated,

“Again, these withdrawals were primarily to other exchanges where Cotten held accounts in his name or to other parties trading with Cotten personally. Some of the transfers were to wallets controlled by unknown parties.”

Succinctly summarizing the entire QuadrigaCX debacle, Thomas concluded,

“The biggest bombshell, foreshadowed in earlier reports, is that Cotten set up fake accounts, funded them with hundreds of millions of dollars of fiat and crypto that didn’t exist, bought real crypto from users and then moved the crypto off Quadriga.”

QuadrigaCX has been a tale like no other, or every other, depending on how deep and detached you are from the world of financial frauds. It has been the ideal scam; man sets up a fake business, takes in millions of dollars worth of funds, scatters the funds in different pools under anonymous names, enriches himself and his family, before the mastermind behind it all dies, leaving the authorities clutching thin air.

Who knows? A QuadrigaCX biopic might be in the works with Ryan Gosling (Another Canadian) in the lead. Martin Scorsese should be licking his lips now.





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