15 Ways You Can Earn Bitcoin from Home without Investment

Bob The Magic Custodian



Summary: Everyone knows that when you give your assets to someone else, they always keep them safe. If this is true for individuals, it is certainly true for businesses.
Custodians always tell the truth and manage funds properly. They won't have any interest in taking the assets as an exchange operator would. Auditors tell the truth and can't be misled. That's because organizations that are regulated are incapable of lying and don't make mistakes.

First, some background. Here is a summary of how custodians make us more secure:

Previously, we might give Alice our crypto assets to hold. There were risks:

But "no worries", Alice has a custodian named Bob. Bob is dressed in a nice suit. He knows some politicians. And he drives a Porsche. "So you have nothing to worry about!". And look at all the benefits we get:
See - all problems are solved! All we have to worry about now is:
It's pretty simple. Before we had to trust Alice. Now we only have to trust Alice, Bob, and all the ways in which they communicate. Just think of how much more secure we are!

"On top of that", Bob assures us, "we're using a special wallet structure". Bob shows Alice a diagram. "We've broken the balance up and store it in lots of smaller wallets. That way", he assures her, "a thief can't take it all at once". And he points to a historic case where a large sum was taken "because it was stored in a single wallet... how stupid".
"Very early on, we used to have all the crypto in one wallet", he said, "and then one Christmas a hacker came and took it all. We call him the Grinch. Now we individually wrap each crypto and stick it under a binary search tree. The Grinch has never been back since."

"As well", Bob continues, "even if someone were to get in, we've got insurance. It covers all thefts and even coercion, collusion, and misplaced keys - only subject to the policy terms and conditions." And with that, he pulls out a phone-book sized contract and slams it on the desk with a thud. "Yep", he continues, "we're paying top dollar for one of the best policies in the country!"
"Can I read it?' Alice asks. "Sure," Bob says, "just as soon as our legal team is done with it. They're almost through the first chapter." He pauses, then continues. "And can you believe that sales guy Mike? He has the same year Porsche as me. I mean, what are the odds?"

"Do you use multi-sig?", Alice asks. "Absolutely!" Bob replies. "All our engineers are fully trained in multi-sig. Whenever we want to set up a new wallet, we generate 2 separate keys in an air-gapped process and store them in this proprietary system here. Look, it even requires the biometric signature from one of our team members to initiate any withdrawal." He demonstrates by pressing his thumb into the display. "We use a third-party cloud validation API to match the thumbprint and authorize each withdrawal. The keys are also backed up daily to an off-site third-party."
"Wow that's really impressive," Alice says, "but what if we need access for a withdrawal outside of office hours?" "Well that's no issue", Bob says, "just send us an email, call, or text message and we always have someone on staff to help out. Just another part of our strong commitment to all our customers!"

"What about Proof of Reserve?", Alice asks. "Of course", Bob replies, "though rather than publish any blockchain addresses or signed transaction, for privacy we just do a SHA256 refactoring of the inverse hash modulus for each UTXO nonce and combine the smart contract coefficient consensus in our hyperledger lightning node. But it's really simple to use." He pushes a button and a large green checkmark appears on a screen. "See - the algorithm ran through and reserves are proven."
"Wow", Alice says, "you really know your stuff! And that is easy to use! What about fiat balances?" "Yeah, we have an auditor too", Bob replies, "Been using him for a long time so we have quite a strong relationship going! We have special books we give him every year and he's very efficient! Checks the fiat, crypto, and everything all at once!"

"We used to have a nice offline multi-sig setup we've been using without issue for the past 5 years, but I think we'll move all our funds over to your facility," Alice says. "Awesome", Bob replies, "Thanks so much! This is perfect timing too - my Porsche got a dent on it this morning. We have the paperwork right over here." "Great!", Alice replies.
And with that, Alice gets out her pen and Bob gets the contract. "Don't worry", he says, "you can take your crypto-assets back anytime you like - just subject to our cancellation policy. Our annual management fees are also super low and we don't adjust them often".

How many holes have to exist for your funds to get stolen?
Just one.

Why are we taking a powerful offline multi-sig setup, widely used globally in hundreds of different/lacking regulatory environments with 0 breaches to date, and circumventing it by a demonstrably weak third party layer? And paying a great expense to do so?
If you go through the list of breaches in the past 2 years to highly credible organizations, you go through the list of major corporate frauds (only the ones we know about), you go through the list of all the times platforms have lost funds, you go through the list of times and ways that people have lost their crypto from identity theft, hot wallet exploits, extortion, etc... and then you go through this custodian with a fine-tooth comb and truly believe they have value to add far beyond what you could, sticking your funds in a wallet (or set of wallets) they control exclusively is the absolute worst possible way to take advantage of that security.

The best way to add security for crypto-assets is to make a stronger multi-sig. With one custodian, what you are doing is giving them your cryptocurrency and hoping they're honest, competent, and flawlessly secure. It's no different than storing it on a really secure exchange. Maybe the insurance will cover you. Didn't work for Bitpay in 2015. Didn't work for Yapizon in 2017. Insurance has never paid a claim in the entire history of cryptocurrency. But maybe you'll get lucky. Maybe your exact scenario will buck the trend and be what they're willing to cover. After the large deductible and hopefully without a long and expensive court battle.

And you want to advertise this increase in risk, the lapse of judgement, an accident waiting to happen, as though it's some kind of benefit to customers ("Free institutional-grade storage for your digital assets.")? And then some people are writing to the OSC that custodians should be mandatory for all funds on every exchange platform? That this somehow will make Canadians as a whole more secure or better protected compared with standard air-gapped multi-sig? On what planet?

Most of the problems in Canada stemmed from one thing - a lack of transparency. If Canadians had known what a joke Quadriga was - it wouldn't have grown to lose $400m from hard-working Canadians from coast to coast to coast. And Gerald Cotten would be in jail, not wherever he is now (at best, rotting peacefully). EZ-BTC and mister Dave Smilie would have been a tiny little scam to his friends, not a multi-million dollar fraud. Einstein would have got their act together or been shut down BEFORE losing millions and millions more in people's funds generously donated to criminals. MapleChange wouldn't have even been a thing. And maybe we'd know a little more about CoinTradeNewNote - like how much was lost in there. Almost all of the major losses with cryptocurrency exchanges involve deception with unbacked funds.
So it's great to see transparency reports from BitBuy and ShakePay where someone independently verified the backing. The only thing we don't have is:
It's not complicated to validate cryptocurrency assets. They need to exist, they need to be spendable, and they need to cover the total balances. There are plenty of credible people and firms across the country that have the capacity to reasonably perform this validation. Having more frequent checks by different, independent, parties who publish transparent reports is far more valuable than an annual check by a single "more credible/official" party who does the exact same basic checks and may or may not publish anything. Here's an example set of requirements that could be mandated:
There are ways to structure audits such that neither crypto assets nor customer information are ever put at risk, and both can still be properly validated and publicly verifiable. There are also ways to structure audits such that they are completely reasonable for small platforms and don't inhibit innovation in any way. By making the process as reasonable as possible, we can completely eliminate any reason/excuse that an honest platform would have for not being audited. That is arguable far more important than any incremental improvement we might get from mandating "the best of the best" accountants. Right now we have nothing mandated and tons of Canadians using offshore exchanges with no oversight whatsoever.

Transparency does not prove crypto assets are safe. CoinTradeNewNote, Flexcoin ($600k), and Canadian Bitcoins ($100k) are examples where crypto-assets were breached from platforms in Canada. All of them were online wallets and used no multi-sig as far as any records show. This is consistent with what we see globally - air-gapped multi-sig wallets have an impeccable record, while other schemes tend to suffer breach after breach. We don't actually know how much CoinTrader lost because there was no visibility. Rather than publishing details of what happened, the co-founder of CoinTrader silently moved on to found another platform - the "most trusted way to buy and sell crypto" - a site that has no information whatsoever (that I could find) on the storage practices and a FAQ advising that “[t]rading cryptocurrency is completely safe” and that having your own wallet is “entirely up to you! You can certainly keep cryptocurrency, or fiat, or both, on the app.” Doesn't sound like much was learned here, which is really sad to see.
It's not that complicated or unreasonable to set up a proper hardware wallet. Multi-sig can be learned in a single course. Something the equivalent complexity of a driver's license test could prevent all the cold storage exploits we've seen to date - even globally. Platform operators have a key advantage in detecting and preventing fraud - they know their customers far better than any custodian ever would. The best job that custodians can do is to find high integrity individuals and train them to form even better wallet signatories. Rather than mandating that all platforms expose themselves to arbitrary third party risks, regulations should center around ensuring that all signatories are background-checked, properly trained, and using proper procedures. We also need to make sure that signatories are empowered with rights and responsibilities to reject and report fraud. They need to know that they can safely challenge and delay a transaction - even if it turns out they made a mistake. We need to have an environment where mistakes are brought to the surface and dealt with. Not one where firms and people feel the need to hide what happened. In addition to a knowledge-based test, an auditor can privately interview each signatory to make sure they're not in coercive situations, and we should make sure they can freely and anonymously report any issues without threat of retaliation.
A proper multi-sig has each signature held by a separate person and is governed by policies and mutual decisions instead of a hierarchy. It includes at least one redundant signature. For best results, 3of4, 3of5, 3of6, 4of5, 4of6, 4of7, 5of6, or 5of7.

History has demonstrated over and over again the risk of hot wallets even to highly credible organizations. Nonetheless, many platforms have hot wallets for convenience. While such losses are generally compensated by platforms without issue (for example Poloniex, Bitstamp, Bitfinex, Gatecoin, Coincheck, Bithumb, Zaif, CoinBene, Binance, Bitrue, Bitpoint, Upbit, VinDAX, and now KuCoin), the public tends to focus more on cases that didn't end well. Regardless of what systems are employed, there is always some level of risk. For that reason, most members of the public would prefer to see third party insurance.
Rather than trying to convince third party profit-seekers to provide comprehensive insurance and then relying on an expensive and slow legal system to enforce against whatever legal loopholes they manage to find each and every time something goes wrong, insurance could be run through multiple exchange operators and regulators, with the shared interest of having a reputable industry, keeping costs down, and taking care of Canadians. For example, a 4 of 7 multi-sig insurance fund held between 5 independent exchange operators and 2 regulatory bodies. All Canadian exchanges could pay premiums at a set rate based on their needed coverage, with a higher price paid for hot wallet coverage (anything not an air-gapped multi-sig cold wallet). Such a model would be much cheaper to manage, offer better coverage, and be much more reliable to payout when needed. The kind of coverage you could have under this model is unheard of. You could even create something like the CDIC to protect Canadians who get their trading accounts hacked if they can sufficiently prove the loss is legitimate. In cases of fraud, gross negligence, or insolvency, the fund can be used to pay affected users directly (utilizing the last transparent balance report in the worst case), something which private insurance would never touch. While it's recommended to have official policies for coverage, a model where members vote would fully cover edge cases. (Could be similar to the Supreme Court where justices vote based on case law.)
Such a model could fully protect all Canadians across all platforms. You can have a fiat coverage governed by legal agreements, and crypto-asset coverage governed by both multi-sig and legal agreements. It could be practical, affordable, and inclusive.

Now, we are at a crossroads. We can happily give up our freedom, our innovation, and our money. We can pay hefty expenses to auditors, lawyers, and regulators year after year (and make no mistake - this cost will grow to many millions or even billions as the industry grows - and it will be borne by all Canadians on every platform because platforms are not going to eat up these costs at a loss). We can make it nearly impossible for any new platform to enter the marketplace, forcing Canadians to use the same stagnant platforms year after year. We can centralize and consolidate the entire industry into 2 or 3 big players and have everyone else fail (possibly to heavy losses of users of those platforms). And when a flawed security model doesn't work and gets breached, we can make it even more complicated with even more people in suits making big money doing the job that blockchain was supposed to do in the first place. We can build a system which is so intertwined and dependent on big government, traditional finance, and central bankers that it's future depends entirely on that of the fiat system, of fractional banking, and of government bail-outs. If we choose this path, as history has shown us over and over again, we can not go back, save for revolution. Our children and grandchildren will still be paying the consequences of what we decided today.
Or, we can find solutions that work. We can maintain an open and innovative environment while making the adjustments we need to make to fully protect Canadian investors and cryptocurrency users, giving easy and affordable access to cryptocurrency for all Canadians on the platform of their choice, and creating an environment in which entrepreneurs and problem solvers can bring those solutions forward easily. None of the above precludes innovation in any way, or adds any unreasonable cost - and these three policies would demonstrably eliminate or resolve all 109 historic cases as studied here - that's every single case researched so far going back to 2011. It includes every loss that was studied so far not just in Canada but globally as well.
Unfortunately, finding answers is the least challenging part. Far more challenging is to get platform operators and regulators to agree on anything. My last post got no response whatsoever, and while the OSC has told me they're happy for industry feedback, I believe my opinion alone is fairly meaningless. This takes the whole community working together to solve. So please let me know your thoughts. Please take the time to upvote and share this with people. Please - let's get this solved and not leave it up to other people to do.

Facts/background/sources (skip if you like):



Thoughts?
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Century Pacific ups the Coco Wars ante against Axelum (Wednesday, August 20)

Happy Wednesday, Barkada --

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Thank you verneornitier for pat on the back, and to StefanJanobski for being a reader since before the lockdown. Remember those days? Back when it was possible to consider a packed restaurant or bar to be "great atmosphere"? That's how long they've been a reader! That seems like forever ago.
Thanks also to Bien for the nice email, and to Mark for his approval of my puns. My puns! Compliments like that are going to make my hair wet... you know, because my head will get tubig.

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Decentralized Finance (DeFi)

Decentralized Finance (DeFi)

How Decentralized Finance Came to Be

Decentralized Finance (DeFi) can be rightfully considered a third revolution in the crypto space. If you wonder what the first two are, these are the invention of blockchain itself along with the technology’s firstborn, Bitcoin, and the inception of the smart contract technology. Just like blockchain provides the basis for smart contracts, the latter give rise to DeFi. It is often said that smart contracts are poised to revolutionize the ways both humans and organizations interact in their contractual relationships. In this sense, DeFi is the stage where these relationships are set to emerge and develop. With a bigger picture in mind, it is the world that the blockchain technology lays the foundation for, while smart contracts help to build it. Why we need DeFi, how it is possible, what makes it tick and click are the main themes of this article.
by StealthEX

But seriously, why do we need it?

As most financial services in existence today are provided by or involve third parties, for example, banks, exchanges, investment companies, insurance agencies etc, DeFi is an attempt to build an alternative environment, an ecosystem of applications offering the same set of services but now powered by public blockchain networks in a decentralized, transparent and permissionless way. By and large, the basic idea that guides DeFi is essentially the same ethos that drives innovation with crypto as such, but at an entirely different level.
Just like cryptocurrencies try to wrest the state supremacy over money from the hands of rogue governments and central banks, DeFi takes it further and aims higher. With DeFi, it is no longer a matter of creating a coin in an effort to replace fiat money, which mostly doesn’t work anyway. However, building a whole new domain of financial services available fairly and squarely to anyone, with full control over the assets but without corrupt governments and greedy intermediaries sticking around, may pan out better after all.
So, answering the question posed at the beginning of this section, we need DeFi for basically the same reasons we need cryptocurrencies. Or, put differently, if we need cryptocurrencies, an assumption that has been proved indisputable, it is inevitable as well that we will sooner or later become interested in decentralized financial services powered by these cryptocurrencies through smart contract blockchains. We can’t just create Bitcoin and say that’ll do. It is a natural development, a Maslow’s hierarchy of needs, in a sense.

How is it ever possible?

As mentioned in the introduction, DeFi emerges thanks to smart contract tech and decentralized applications (or simply dApps) running them. So how does it work in practice? To better understand the idea, let’s take a closer look at a relatively simple example of a decentralized crypto-backed stablecoin which can be created through a smart contract. Stablecoins are coins whose value is pegged to a stable asset such as a commodity like gold or a fiat currency like the US dollar.
There are a few different types of stablecoins that exist in the wild. For the purpose of this exposition, we are interested in crypto-backed stablecoins. Like stablecoins collateralized by fiat, these stablecoins use cryptocurrencies as collateral. However, the key difference is that a fiat-based stablecoin is pegged to the fiat currency which is backing it up. Kinda obvious. A crypto-backed stablecoin, on the other hand, is pegged to one asset, say, the American dollar, but backed up by a completely different one, for example, Ether. Things get tricky.
A crypto-collateralized stablecoin is possible through the magic and the beauty of the smart contract governing it. If the price of such a stablecoin rises above its peg, or parity, you can create more stablecoins and sell them at a premium. If the price of the stablecoin falls below parity, you can buy stablecoins and liquidate them at a discount. If the collateral itself crashes, undercollateralized stablecoins will be liquidated with their collateral now backing up fewer stablecoins. As a result, the price always gets pushed back to parity.
And all this rather complicated stuff is done on the blockchain in a decentralized and automatic fashion with no banks or other third parties involved. Consequently, more services are easily possible too. And quite a few at that.

Okay, what decentralized financial services are available?

Well, one such service we have just described above. Cryptocurrencies are infamous for being extremely volatile, and stablecoins are designed to deal with this issue. There are many stablecoins out there like Tether, TrueUSD, or Gemini Coin, but they are all based on trusting third parties. Easily one of the best known crypto-backed stablecoins is MakerDAO’s DAI, which is pegged against the US dollar with a basket of crypto-assets as collateral in a truly decentralized and trustless way, that is, a blockchain way.
Crypto-based stablecoins can be used on their own by offering a hedge against the price volatility of such popular cryptocurrencies as Ether or Bitcoin. Aside from that, they are also instrumental in other DeFi services, for example, in decentralized exchanges like IDEX or BiKi.com. With stablecoins, it becomes possible to create fiat trading pairs in addition to crypto ones in entirely decentralized, non-custodial trading environments as opposed to centralized exchanges like Bitfinex or Binance, which are vulnerable to high-profile hacks and personal data leaks.
Unlike MakerDAO, Ampleforth doesn’t strive to create a rock-solid stablecoin. Instead, it comes up with the notion of “adaptive money built on sound economics”, with its mission stretching out as far as to marry “the scarcity of Bitcoin with the elasticity of fiat”. It tries to go beyond the relatively simple concept of a stablecoin and brings forth the idea of elastic money supply that can expand and contract depending on market demands, as well as allow the creation of a valid form of collateral for DeFi based on that idea.
Obviously, DeFi is not just about stablecoins or the financial services using them. Blockchain-based borrowing and lending is another important DeFi arena. With platforms like Compound, dYdX, Dharma, you can deposit your crypto assets to either earn interest on them or use these assets as collateral for borrowing. Smart contracts automatically match borrowers and lenders, offering dynamic interest rates based on supply and demand. And with tools like LoanScan, you can also easily shop around for the best interest rates on the block.
These examples are far from exhaustive, of course, as the space is rapidly expanding and evolving. However, there are some fundamental issues that put grit into the wheels of the DeFi war machine.

So where’s the catch?

There are many advantages of DeFi, but to be of any practical use, it needs up-to-date information that would be reliable and authentic. Smart contracts that DeFi is based on are hopelessly on-chain, but the data they need for processing is mostly off-chain. Without a bridge to close this gap between a smart contract and its source of external information, smart contracts are entrapped in closed-off dungeons of their blockchains. To be sure, no crypto-based stablecoin is going to work correctly without a real-time price feed for the assets taken as its collateral and used for maintaining the peg.
To get around this roadblock, a concept of blockchain oracles has been suggested. But as the chain cannot be stronger than its weakest link, blockchain oracles seem to be that weak link in the field of DeFi and beyond as obtaining information in a verifiable way can be an intimidating task. What approaches dApps are taking to procure and verify sources of truth in the external world is the topic of our upcoming article about blockchain oracles. Stay with us and stay tuned!
And remember if you need to exchange your coins StealthEX is here for you. We provide a selection of more than 250 coins and constantly updating the list so that our customers will find a suitable option. Our service does not require registration and allows you to remain anonymous. Why don’t you check it out? Just go to StealthEX and follow these easy steps:
✔ Choose the pair and the amount for your exchange. For example ETH to BTC.
✔ Press the “Start exchange” button.
✔ Provide the recipient address to which the coins will be transferred.
✔ Move your cryptocurrency for the exchange.
✔ Receive your coins.
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The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Original article was posted on https://stealthex.io/blog/2020/08/04/decentralized-finance-defi/
submitted by Stealthex_io to StealthEX [link] [comments]

RESEARCH REPORT ABOUT KYBER NETWORK

RESEARCH REPORT ABOUT KYBER NETWORK
Author: Gamals Ahmed, CoinEx Business Ambassador

https://preview.redd.it/9k31yy1bdcg51.jpg?width=936&format=pjpg&auto=webp&s=99bcb7c3f50b272b7d97247b369848b5d8cc6053

ABSTRACT

In this research report, we present a study on Kyber Network. Kyber Network is a decentralized, on-chain liquidity protocol designed to make trading tokens simple, efficient, robust and secure.
Kyber design allows any party to contribute to an aggregated pool of liquidity within each blockchain while providing a single endpoint for takers to execute trades using the best rates available. We envision a connected liquidity network that facilitates seamless, decentralized cross-chain token swaps across Kyber based networks on different chains.
Kyber is a fully on-chain liquidity protocol that enables decentralized exchange of cryptocurrencies in any application. Liquidity providers (Reserves) are integrated into one single endpoint for takers and users. When a user requests a trade, the protocol will scan the entire network to find the reserve with the best price and take liquidity from that particular reserve.

1.INTRODUCTION

DeFi applications all need access to good liquidity sources, which is a critical component to provide good services. Currently, decentralized liquidity is comprised of various sources including DEXes (Uniswap, OasisDEX, Bancor), decentralized funds and other financial apps. The more scattered the sources, the harder it becomes for anyone to either find the best rate for their trade or to even find enough liquidity for their need.
Kyber is a blockchain-based liquidity protocol that aggregates liquidity from a wide range of reserves, powering instant and secure token exchange in any decentralized application.
The protocol allows for a wide range of implementation possibilities for liquidity providers, allowing a wide range of entities to contribute liquidity, including end users, decentralized exchanges and other decentralized protocols. On the taker side, end users, cryptocurrency wallets, and smart contracts are able to perform instant and trustless token trades at the best rates available amongst the sources.
The Kyber Network is project based on the Ethereum protocol that seeks to completely decentralize the exchange of crypto currencies and make exchange trustless by keeping everything on the blockchain.
Through the Kyber Network, users should be able to instantly convert or exchange any crypto currency.

1.1 OVERVIEW ABOUT KYBER NETWORK PROTOCOL

The Kyber Network is a decentralized way to exchange ETH and different ERC20 tokens instantly — no waiting and no registration needed.
Using this protocol, developers can build innovative payment flows and applications, including instant token swap services, ERC20 payments, and financial DApps — helping to build a world where any token is usable anywhere.
Kyber’s fully on-chain design allows for full transparency and verifiability in the matching engine, as well as seamless composability with DApps, not all of which are possible with off-chain or hybrid approaches. The integration of a large variety of liquidity providers also makes Kyber uniquely capable of supporting sophisticated schemes and catering to the needs of DeFi DApps and financial institutions. Hence, many developers leverage Kyber’s liquidity pool to build innovative financial applications, and not surprisingly, Kyber is the most used DeFi protocol in the world.
The Kyber Network is quite an established project that is trying to change the way we think of decentralised crypto currency exchange.
The Kyber Network has seen very rapid development. After being announced in May 2017 the testnet for the Kyber Network went live in August 2017. An ICO followed in September 2017, with the company raising 200,000 ETH valued at $60 million in just one day.
The live main net was released in February 2018 to whitelisted participants, and on March 19, 2018, the Kyber Network opened the main net as a public beta. Since then the network has seen increasing growth, with network volumes growing more than 500% in the first half of 2019.
Although there was a modest decrease in August 2019 that can be attributed to the price of ETH dropping by 50%, impacting the overall total volumes being traded and processed globally.
They are developing a decentralised exchange protocol that will allow developers to build payment flows and financial apps. This is indeed quite a competitive market as a number of other such protocols have been launched.
In Brief - Kyber Network is a tool that allows anyone to swap tokens instantly without having to use exchanges. - It allows vendors to accept different types of cryptocurrency while still being paid in their preferred crypto of choice. - It’s built primarily for Ethereum, but any smart-contract based blockchain can incorporate it.
At its core, Kyber is a decentralized way to exchange ETH and different ERC20 tokens instantly–no waiting and no registration needed. To do this Kyber uses a diverse set of liquidity pools, or pools of different crypto assets called “reserves” that any project can tap into or integrate with.
A typical use case would be if a vendor allowed customers to pay in whatever currency they wish, but receive the payment in their preferred token. Another example would be for Dapp users. At present, if you are not a token holder of a certain Dapp you can’t use it. With Kyber, you could use your existing tokens, instantly swap them for the Dapp specific token and away you go.
All this swapping happens directly on the Ethereum blockchain, meaning every transaction is completely transparent.

1.1.1 WHY BUILD THE KYBER NETWORK?

While crypto currencies were built to be decentralized, many of the exchanges for trading crypto currencies have become centralized affairs. This has led to security vulnerabilities, with many exchanges becoming the victims of hacking and theft.
It has also led to increased fees and costs, and the centralized exchanges often come with slow transfer times as well. In some cases, wallets have been locked and users are unable to withdraw their coins.
Decentralized exchanges have popped up recently to address the flaws in the centralized exchanges, but they have their own flaws, most notably a lack of liquidity, and often times high costs to modify trades in their on-chain order books.

Some of the Integrations with Kyber Protocol
The Kyber Network was formed to provide users with a decentralized exchange that keeps everything right on the blockchain, and uses a reserve system rather than an order book to provide high liquidity at all times. This will allow for the exchange and transfer of any cryptocurrency, even cross exchanges, and costs will be kept at a minimum as well.
The Kyber Network has three guiding design philosophies since the start:
  1. To be most useful the network needs to be platform-agnostic, which allows any protocol or application the ability to take advantage of the liquidity provided by the Kyber Network without any impact on innovation.
  2. The network was designed to make real-world commerce and decentralized financial products not only possible but also feasible. It does this by allowing for instant token exchange across a wide range of tokens, and without any settlement risk.
  3. The Kyber Network was created with ease of integration as a priority, which is why everything runs fully on-chain and fully transparent. Kyber is not only developer-friendly, but is also compatible with a wide variety of systems.

1.1.2 WHO INVENTED KYBER?

Kyber’s founders are Loi Luu, Victor Tran, Yaron Velner — CEO, CTO, and advisor to the Kyber Network.

1.1.3 WHAT DISTINGUISHES KYBER?

Kyber’s mission has always been to integrate with other protocols so they’ve focused on being developer-friendly by providing architecture to allow anyone to incorporate the technology onto any smart-contract powered blockchain. As a result, a variety of different dapps, vendors, and wallets use Kyber’s infrastructure including Set Protocol, bZx, InstaDApp, and Coinbase wallet.
Besides, dapps, vendors, and wallets, Kyber also integrates with other exchanges such as Uniswap — sharing liquidity pools between the two protocols.
A typical use case would be if a vendor allowed customers to pay in whatever currency they wish, but receive the payment in their preferred token. Another example would be for Dapp users. At present, if you are not a token holder of a certain Dapp you can’t use it. With Kyber, you could use your existing tokens, instantly swap them for the Dapp specific token and away you go.
Limit orders on Kyber allow users to set a specific price in which they would like to exchange a token instead of accepting whatever price currently exists at the time of trading. However, unlike with other exchanges, users never lose custody of their crypto assets during limit orders on Kyber.
The Kyber protocol works by using pools of crypto funds called “reserves”, which currently support over 70 different ERC20 tokens. Reserves are essentially smart contracts with a pool of funds. Different parties with different prices and levels of funding control all reserves. Instead of using order books to match buyers and sellers to return the best price, the Kyber protocol looks at all the reserves and returns the best price among the different reserves. Reserves make money on the “spread” or differences between the buying and selling prices. The Kyber wants any token holder to easily convert one token to another with a minimum of fuss.

1.2 KYBER PROTOCOL

The protocol smart contracts offer a single interface for the best available token exchange rates to be taken from an aggregated liquidity pool across diverse sources. ● Aggregated liquidity pool. The protocol aggregates various liquidity sources into one liquidity pool, making it easy for takers to find the best rates offered with one function call. ● Diverse sources of liquidity. The protocol allows different types of liquidity sources to be plugged into. Liquidity providers may employ different strategies and different implementations to contribute liquidity to the protocol. ● Permissionless. The protocol is designed to be permissionless where any developer can set up various types of reserves, and any end user can contribute liquidity. Implementations need to take into consideration various security vectors, such as reserve spamming, but can be mitigated through a staking mechanism. We can expect implementations to be permissioned initially until the maintainers are confident about these considerations.
The core feature that the Kyber protocol facilitates is the token swap between taker and liquidity sources. The protocol aims to provide the following properties for token trades: ● Instant Settlement. Takers do not have to wait for their orders to be fulfilled, since trade matching and settlement occurs in a single blockchain transaction. This enables trades to be part of a series of actions happening in a single smart contract function. ● Atomicity. When takers make a trade request, their trade either gets fully executed, or is reverted. This “all or nothing” aspect means that takers are not exposed to the risk of partial trade execution. ● Public rate verification. Anyone can verify the rates that are being offered by reserves and have their trades instantly settled just by querying from the smart contracts. ● Ease of integration. Trustless and atomic token trades can be directly and easily integrated into other smart contracts, thereby enabling multiple trades to be performed in a smart contract function.
How each actor works is specified in Section Network Actors. 1. Takers refer to anyone who can directly call the smart contract functions to trade tokens, such as end-users, DApps, and wallets. 2. Reserves refer to anyone who wishes to provide liquidity. They have to implement the smart contract functions defined in the reserve interface in order to be registered and have their token pairs listed. 3. Registered reserves refer to those that will be cycled through for matching taker requests. 4. Maintainers refer to anyone who has permission to access the functions for the adding/removing of reserves and token pairs, such as a DAO or the team behind the protocol implementation. 5. In all, they comprise of the network, which refers to all the actors involved in any given implementation of the protocol.
The protocol implementation needs to have the following: 1. Functions for takers to check rates and execute the trades 2. Functions for the maintainers to registeremove reserves and token pairs 3. Reserve interface that defines the functions reserves needs to implement
https://preview.redd.it/d2tcxc7wdcg51.png?width=700&format=png&auto=webp&s=b2afde388a77054e6731772b9115ee53f09b6a4a

1.3 KYBER CORE SMART CONTRACTS

Kyber Core smart contracts is an implementation of the protocol that has major protocol functions to allow actors to join and interact with the network. For example, the Kyber Core smart contracts provide functions for the listing and delisting of reserves and trading pairs by having clear interfaces for the reserves to comply to be able to register to the network and adding support for new trading pairs. In addition, the Kyber Core smart contracts also provide a function for takers to query the best rate among all the registered reserves, and perform the trades with the corresponding rate and reserve. A trading pair consists of a quote token and any other token that the reserve wishes to support. The quote token is the token that is either traded from or to for all trades. For example, the Ethereum implementation of the Kyber protocol uses Ether as the quote token.
In order to search for the best rate, all reserves supporting the requested token pair will be iterated through. Hence, the Kyber Core smart contracts need to have this search algorithm implemented.
The key functions implemented in the Kyber Core Smart Contracts are listed in Figure 2 below. We will visit and explain the implementation details and security considerations of each function in the Specification Section.

1.4 HOW KYBER’S ON-CHAIN PROTOCOL WORKS?

Kyber is the liquidity infrastructure for decentralized finance. Kyber aggregates liquidity from diverse sources into a pool, which provides the best rates for takers such as DApps, Wallets, DEXs, and End users.

1.4.1 PROVIDING LIQUIDITY AS A RESERVE

Anyone can operate a Kyber Reserve to market make for profit and make their tokens available for DApps in the ecosystem. Through an open reserve architecture, individuals, token teams and professional market makers can contribute token assets to Kyber’s liquidity pool and earn from the spread in every trade. These tokens become available at the best rates across DApps that tap into the network, making them instantly more liquid and useful.
MAIN RESERVE TYPES Kyber currently has over 45 reserves in its network providing liquidity. There are 3 main types of reserves that allow different liquidity contribution options to suit the unique needs of different providers. 1. Automated Price Reserves (APR) — Allows token teams and users with large token holdings to have an automated yet customized pricing system with low maintenance costs. Synthetix and Melon are examples of teams that run APRs. 2. Fed Price Reserves (FPR) — Operated by professional market makers that require custom and advanced pricing strategies tailored to their specific needs. Kyber alongside reserves such as OneBit, runs FPRs. 3. Bridge Reserves (BR) — These are specialized reserves meant to bring liquidity from other on-chain liquidity providers like Uniswap, Oasis, DutchX, and Bancor into the network.

1.5 KYBER NETWORK ROLES

There Kyber Network functions through coordination between several different roles and functions as explained below: - Users — This entity uses the Kyber Network to send and receive tokens. A user can be an individual, a merchant, and even a smart contract account. - Reserve Entities — This role is used to add liquidity to the platform through the dynamic reserve pool. Some reserve entities are internal to the Kyber Network, but others may be registered third parties. Reserve entities may be public if the public contributes to the reserves they hold, otherwise they are considered private. By allowing third parties as reserve entities the network adds diversity, which prevents monopolization and keeps exchange rates competitive. Allowing third party reserve entities also allows for the listing of less popular coins with lower volumes. - Reserve Contributors — Where reserve entities are classified as public, the reserve contributor is the entity providing reserve funds. Their incentive for doing so is a profit share from the reserve. - The Reserve Manager — Maintains the reserve, calculates exchange rates and enters them into the network. The reserve manager profits from exchange spreads set by them on their reserves. They can also benefit from increasing volume by accessing the entire Kyber Network. - The Kyber Network Operator — Currently the Kyber Network team is filling the role of the network operator, which has a function to adds/remove Reserve Entities as well as controlling the listing of tokens. Eventually, this role will revert to a proper decentralized governance.

1.6 BASIC TOKEN TRADE

A basic token trade is one that has the quote token as either the source or destination token of the trade request. The execution flow of a basic token trade is depicted in the diagram below, where a taker would like to exchange BAT tokens for ETH as an example. The trade happens in a single blockchain transaction. 1. Taker sends 1 ETH to the protocol contract, and would like to receive BAT in return. 2. Protocol contract queries the first reserve for its ETH to BAT exchange rate. 3. Reserve 1 offers an exchange rate of 1 ETH for 800 BAT. 4. Protocol contract queries the second reserve for its ETH to BAT exchange rate. 5. Reserve 2 offers an exchange rate of 1 ETH for 820 BAT. 6. This process goes on for the other reserves. After the iteration, reserve 2 is discovered to have offered the best ETH to BAT exchange rate. 7. Protocol contract sends 1 ETH to reserve 2. 8. The reserve sends 820 BAT to the taker.

1.7 TOKEN-TO-TOKEN TRADE

A token-to-token trade is one where the quote token is neither the source nor the destination token of the trade request. The exchange flow of a token to token trade is depicted in the diagram below, where a taker would like to exchange BAT tokens for DAI as an example. The trade happens in a single blockchain transaction. 1. Taker sends 50 BAT to the protocol contract, and would like to receive DAI in return. 2. Protocol contract sends 50 BAT to the reserve offering the best BAT to ETH rate. 3. Protocol contract receives 1 ETH in return. 4. Protocol contract sends 1 ETH to the reserve offering the best ETH to DAI rate. 5. Protocol contract receives 30 DAI in return. 6. Protocol contract sends 30 DAI to the user.

2.KYBER NETWORK CRYSTAL (KNC) TOKEN

Kyber Network Crystal (KNC) is an ERC-20 utility token and an integral part of Kyber Network.
KNC is the first deflationary staking token where staking rewards and token burns are generated from actual network usage and growth in DeFi.
The Kyber Network Crystal (KNC) is the backbone of the Kyber Network. It works to connect liquidity providers and those who need liquidity and serves three distinct purposes. The first of these is to collect transaction fees, and a portion of every fee collected is burned, which keeps KNC deflationary. Kyber Network Crystals (KNC), are named after the crystals in Star Wars used to power light sabers.
The KNC also ensures the smooth operation of the reserve system in the Kyber liquidity since entities must use third-party tokens to buy the KNC that pays for their operations in the network.
KNC allows token holders to play a critical role in determining the incentive system, building a wide base of stakeholders, and facilitating economic flow in the network. A small fee is charged each time a token exchange happens on the network, and KNC holders get to vote on this fee model and distribution, as well as other important decisions. Over time, as more trades are executed, additional fees will be generated for staking rewards and reserve rebates, while more KNC will be burned. - Participation rewards — KNC holders can stake KNC in the KyberDAO and vote on key parameters. Voters will earn staking rewards (in ETH) - Burning — Some of the network fees will be burned to reduce KNC supply permanently, providing long-term value accrual from decreasing supply. - Reserve incentives — KNC holders determine the portion of network fees that are used as rebates for selected liquidity providers (reserves) based on their volume performance.

Finally, the KNC token is the connection between the Kyber Network and the exchanges, wallets, and dApps that leverage the liquidity network. This is a virtuous system since entities are rewarded with referral fees for directing more users to the Kyber Network, which helps increase adoption for Kyber and for the entities using the Network.
And of course there will soon be a fourth and fifth uses for the KNC, which will be as a staking token used to generate passive income, as well as a governance token used to vote on key parameters of the network.
The Kyber Network Crystal (KNC) was released in a September 2017 ICO at a price around $1. There were 226,000,000 KNC minted for the ICO, with 61% sold to the public. The remaining 39% are controlled 50/50 by the company and the founders/advisors, with a 1 year lockup period and 2 year vesting period.
Currently, just over 180 million coins are in circulation, and the total supply has been reduced to 210.94 million after the company burned 1 millionth KNC token in May 2019 and then its second millionth KNC token just three months later.
That means that while it took 15 months to burn the first million KNC, it took just 10 weeks to burn the second million KNC. That shows how rapidly adoption has been growing recently for Kyber, with July 2019 USD trading volumes on the Kyber Network nearly reaching $60 million. This volume has continued growing, and on march 13, 2020 the network experienced its highest daily trading activity of $33.7 million in a 24-hour period.
Currently KNC is required by Reserve Managers to operate on the network, which ensures a minimum amount of demand for the token. Combined with future plans for burning coins, price is expected to maintain an upward bias, although it has suffered along with the broader market in 2018 and more recently during the summer of 2019.
It was unfortunate in 2020 that a beginning rally was cut short by the coronavirus pandemic, although the token has stabilized as of April 2020, and there are hopes the rally could resume in the summer of 2020.

2.1 HOW ARE KNC TOKENS PRODUCED?

The native token of Kyber is called Kyber Network Crystals (KNC). All reserves are required to pay fees in KNC for the right to manage reserves. The KNC collected as fees are either burned and taken out of the total supply or awarded to integrated dapps as an incentive to help them grow.

2.2 HOW DO YOU GET HOLD OF KNC TOKENS?

Kyber Swap can be used to buy ETH directly using a credit card, which can then be used to swap for KNC. Besides Kyber itself, exchanges such as Binance, Huobi, and OKex trade KNC.

2.3 WHAT CAN YOU DO WITH KYBER?

The most direct and basic function of Kyber is for instantly swapping tokens without registering an account, which anyone can do using an Etheruem wallet such as MetaMask. Users can also create their own reserves and contribute funds to a reserve, but that process is still fairly technical one–something Kyber is working on making easier for users in the future.

2.4 THE GOAL OF KYBER THE FUTURE

The goal of Kyber in the coming years is to solidify its position as a one-stop solution for powering liquidity and token swapping on Ethereum. Kyber plans on a major protocol upgrade called Katalyst, which will create new incentives and growth opportunities for all stakeholders in their ecosystem, especially KNC holders. The upgrade will mean more use cases for KNC including to use KNC to vote on governance decisions through a decentralized organization (DAO) called the KyberDAO.
With our upcoming Katalyst protocol upgrade and new KNC model, Kyber will provide even more benefits for stakeholders. For instance, reserves will no longer need to hold a KNC balance for fees, removing a major friction point, and there will be rebates for top performing reserves. KNC holders can also stake their KNC to participate in governance and receive rewards.

2.5 BUYING & STORING KNC

Those interested in buying KNC tokens can do so at a number of exchanges. Perhaps your best bet between the complete list is the likes of Coinbase Pro and Binance. The former is based in the USA whereas the latter is an offshore exchange.
The trading volume is well spread out at these exchanges, which means that the liquidity is not concentrated and dependent on any one exchange. You also have decent liquidity on each of the exchange books. For example, the Binance BTC / KNC books are wide and there is decent turnover. This means easier order execution.
KNC is an ERC20 token and can be stored in any wallet with ERC20 support, such as MyEtherWallet or MetaMask. One interesting alternative is the KyberSwap Android mobile app that was released in August 2019.
It allows for instant swapping of tokens and has support for over 70 different altcoins. It also allows users to set price alerts and limit orders and works as a full-featured Ethereum wallet.

2.6 KYBER KATALYST UPGRADE

Kyber has announced their intention to become the de facto liquidity layer for the Decentralized Finance space, aiming to have Kyber as the single on-chain endpoint used by the majority of liquidity providers and dApp developers. In order to achieve this goal the Kyber Network team is looking to create an open ecosystem that garners trust from the decentralized finance space. They believe this is the path that will lead the majority of projects, developers, and users to choose Kyber for liquidity needs. With that in mind they have recently announced the launch of a protocol upgrade to Kyber which is being called Katalyst.
The Katalyst upgrade will create a stronger ecosystem by creating strong alignments towards a common goal, while also strengthening the incentives for stakeholders to participate in the ecosystem.
The primary beneficiaries of the Katalyst upgrade will be the three major Kyber stakeholders: 1. Reserve managers who provide network liquidity; 2. dApps that connect takers to Kyber; 3. KNC holders.
These stakeholders can expect to see benefits as highlighted below: Reserve Managers will see two new benefits to providing liquidity for the network. The first of these benefits will be incentives for providing reserves. Once Katalyst is implemented part of the fees collected will go to the reserve managers as an incentive for providing liquidity.
This mechanism is similar to rebates in traditional finance, and is expected to drive the creation of additional reserves and market making, which in turn will lead to greater liquidity and platform reach.
Katalyst will also do away with the need for reserve managers to maintain a KNC balance for use as network fees. Instead fees will be automatically collected and used as incentives or burned as appropriate. This should remove a great deal of friction for reserves to connect with Kyber without affecting the competitive exchange rates that takers in the system enjoy. dApp Integrators will now be able to set their own spread, which will give them full control over their own business model. This means the current fee sharing program that shares 30% of the 0.25% fee with dApp developers will go away and developers will determine their own spread. It’s believed this will increase dApp development within Kyber as developers will now be in control of fees.
KNC Holders, often thought of as the core of the Kyber Network, will be able to take advantage of a new staking mechanism that will allow them to receive a portion of network fees by staking their KNC and participating in the KyberDAO.

2.7 COMING KYBERDAO

With the implementation of the Katalyst protocol the KNC holders will be put right at the heart of Kyber. Holders of KNC tokens will now have a critical role to play in determining the future economic flow of the network, including its incentive systems.
The primary way this will be achieved is through KyberDAO, a way in which on-chain and off-chain governance will align to streamline cooperation between the Kyber team, KNC holders, and market participants.
The Kyber Network team has identified 3 key areas of consideration for the KyberDAO: 1. Broad representation, transparent governance and network stability 2. Strong incentives for KNC holders to maintain their stake and be highly involved in governance 3. Maximizing participation with a wide range of options for voting delegation
Interaction between KNC Holders & Kyber
This means KNC holders have been empowered to determine the network fee and how to allocate the fees to ensure maximum network growth. KNC holders will now have three fee allocation options to vote on: - Voting Rewards: Immediate value creation. Holders who stake and participate in the KyberDAO get their share of the fees designated for rewards. - Burning: Long term value accrual. The decreasing supply of KNC will improve the token appreciation over time and benefit those who did not participate. - Reserve Incentives:Value creation via network growth. By rewarding Kyber reserve managers based on their performance, it helps to drive greater volume, value, and network fees.

2.8 TRANSPARENCY AND STABILITY

The design of the KyberDAO is meant to allow for the greatest network stability, as well as maximum transparency and the ability to quickly recover in emergency situations. Initally the Kyber team will remain as maintainers of the KyberDAO. The system is being developed to be as verifiable as possible, while still maintaining maximum transparency regarding the role of the maintainer in the DAO.
Part of this transparency means that all data and processes are stored on-chain if feasible. Voting regarding network fees and allocations will be done on-chain and will be immutable. In situations where on-chain storage or execution is not feasible there will be a set of off-chain governance processes developed to ensure all decisions are followed through on.

2.9 KNC STAKING AND DELEGATION

Staking will be a new addition and both staking and voting will be done in fixed periods of times called “epochs”. These epochs will be measured in Ethereum block times, and each KyberDAO epoch will last roughly 2 weeks.
This is a relatively rapid epoch and it is beneficial in that it gives more rapid DAO conclusion and decision-making, while also conferring faster reward distribution. On the downside it means there needs to be a new voting campaign every two weeks, which requires more frequent participation from KNC stakeholders, as well as more work from the Kyber team.
Delegation will be part of the protocol, allowing stakers to delegate their voting rights to third-party pools or other entities. The pools receiving the delegation rights will be free to determine their own fee structure and voting decisions. Because the pools will share in rewards, and because their voting decisions will be clearly visible on-chain, it is expected that they will continue to work to the benefit of the network.

3. TRADING

After the September 2017 ICO, KNC settled into a trading price that hovered around $1.00 (decreasing in BTC value) until December. The token has followed the trend of most other altcoins — rising in price through December and sharply declining toward the beginning of January 2018.
The KNC price fell throughout all of 2018 with one exception during April. From April 6th to April 28th, the price rose over 200 percent. This run-up coincided with a blog post outlining plans to bring Bitcoin to the Ethereum blockchain. Since then, however, the price has steadily fallen, currently resting on what looks like a $0.15 (~0.000045 BTC) floor.
With the number of partners using the Kyber Network, the price may rise as they begin to fully use the network. The development team has consistently hit the milestones they’ve set out to achieve, so make note of any release announcements on the horizon.

4. COMPETITION

The 0x project is the biggest competitor to Kyber Network. Both teams are attempting to enter the decentralized exchange market. The primary difference between the two is that Kyber performs the entire exchange process on-chain while 0x keeps the order book and matching off-chain.
As a crypto swap exchange, the platform also competes with ShapeShift and Changelly.

5.KYBER MILESTONES

• June 2020: Digifox, an all-in-one finance application by popular crypto trader and Youtuber Nicholas Merten a.k.a DataDash (340K subs), integrated Kyber to enable users to easily swap between cryptocurrencies without having to leave the application. • June 2020: Stake Capital partnered with Kyber to provide convenient KNC staking and delegation services, and also took a KNC position to participate in governance. • June 2020: Outlined the benefits of the Fed Price Reserve (FPR) for professional market makers and advanced developers. • May 2020: Kyber crossed US$1 Billion in total trading volume and 1 Million transactions, performed entirely on-chain on Ethereum. • May 2020: StakeWith.Us partnered Kyber Network as a KyberDAO Pool Master. • May 2020: 2Key, a popular blockchain referral solution using smart links, integrated Kyber’s on-chain liquidity protocol for seamless token swaps • May 2020: Blockchain game League of Kingdoms integrated Kyber to accept Token Payments for Land NFTs. • May 2020: Joined the Zcash Developer Alliance , an invite-only working group to advance Zcash development and interoperability. • May 2020: Joined the Chicago DeFi Alliance to help accelerate on-chain market making for professionals and developers. • March 2020: Set a new record of USD $33.7M in 24H fully on-chain trading volume, and $190M in 30 day on-chain trading volume. • March 2020: Integrated by Rarible, Bullionix, and Unstoppable Domains, with the KyberWidget deployed on IPFS, which allows anyone to swap tokens through Kyber without being blocked. • February 2020: Popular Ethereum blockchain game Axie Infinity integrated Kyber to accept ERC20 payments for NFT game items. • February 2020: Kyber’s protocol was integrated by Gelato Finance, Idle Finance, rTrees, Sablier, and 0x API for their liquidity needs. • January 2020: Kyber Network was found to be the most used protocol in the whole decentralized finance (DeFi) space in 2019, according to a DeFi research report by Binance. • December 2019: Switcheo integrated Kyber’s protocol for enhanced liquidity on their own DEX. • December 2019: DeFi Wallet Eidoo integrated Kyber for seamless in-wallet token swaps. • December 2019: Announced the development of the Katalyst Protocol Upgrade and new KNC token model. • July 2019: Developed the Waterloo Bridge , a Decentralized Practical Cross-chain Bridge between EOS and Ethereum, successfully demonstrating a token swap between Ethereum to EOS. • July 2019: Trust Wallet, the official Binance wallet, integrated Kyber as part of its decentralized token exchange service, allowing even more seamless in-wallet token swaps for thousands of users around the world. • May 2019: HTC, the large consumer electronics company with more than 20 years of innovation, integrated Kyber into its Zion Vault Wallet on EXODUS 1 , the first native web 3.0 blockchain phone, allowing users to easily swap between cryptocurrencies in a decentralized manner without leaving the wallet. • January 2019: Introduced the Automated Price Reserve (APR) , a capital efficient way for token teams and individuals to market make with low slippage. • January 2019: The popular Enjin Wallet, a default blockchain DApp on the Samsung S10 and S20 mobile phones, integrated Kyber to enable in-wallet token swaps. • October 2018: Kyber was a founding member of the WBTC (Wrapped Bitcoin) Initiative and DAO. • October 2018: Developed the KyberWidget for ERC20 token swaps on any website, with CoinGecko being the first major project to use it on their popular site.

Full Article

submitted by CoinEx_Institution to kybernetwork [link] [comments]

OPERATION ICARUS IS LIVE! Event Details & Megathread! 1st July - 14th July

OPERATION ICARUS IS LIVE! Event Details & Megathread! 1st July - 14th July

https://preview.redd.it/bpd4nbdjun731.png?width=900&format=png&auto=webp&s=63795f28e07cbb57f6c0f564f2fa760193e29f00
Hackers, it's time.
Operation Icarus, our simulated Red Team event, is now live. Sign up now, and learn more about passive reconnaissance and target information gathering, whilst getting ready to attack a fictional company, Philman Security Inc! Events will occur at random times during the two-week event, and more information will be required within the Intelligence Report. Information you find now will help you in the future phases of this Operation. When you're ready to start, sign up using the Google Forms link below, join our Discord server, then read the Assignment Brief and start hunting!


This post contains the following content:
  1. Assignment Brief
  2. Event Rules
  3. Useful Links + How to Submit Info
  4. New Content, Tips, Hints, and Learning Material (Every 3 days!)
  5. FAQs
  6. Special Thanks + Event Staff Recruitment
  7. What Happens Next? + Rewards


1) Assignment Brief
PhilmanSecurityInc is a cyber security company, and our target. One service they offer are penetration tests against client companies, and therefore they hold a number of high-value reports, containing vulnerabilities and security flaws which could be used to launch future attacks. We need these. A former employee has informed us that their infrastructure is poorly-managed, and that proper access controls aren't enforced, potentially allowing access to the reports. Now's our chance. Unfortunately for us, the ex-employee's credentials have been revoked, so we're not able to jump straight into their private network. We'll need to start from the ground up. First, we need to gather as much information as we can on the company and its' partners. This includes employees, services, email accounts, any potential credentials, and anything else that could we valuable in the later stages of our attack. Keep track of Philman Security Inc's social-media over the next two weeks, they might post information that's valuable to us. Follow this link to a document where you can record your findings, for later use (download it to your local machine FILE -> Download As or FILE -> Make a Copy). Fill this out as much as you can, we'll need this information soon. https://docs.google.com/document/d/1NMBUPCIdjoxKs5myPDxBqTRVEqyOtH56Q8Jv8gs2Tk8/edit?usp=sharing ***** We've identified a public-facing email account that may be in use. Send a recon email to [email protected] and see what information gets sent back to you. Good luck. 

2) EVENT RULES - READ ME!
1) DO NOT attack ANY identified systems or services in ANY form (web-based attacks; XSS, SQLi, BruteForce, OR any form of network scanning). This phase does NOT include any SRT-owned infrastructure. You will be hacking real companies, which is ILLEGAL. We will clearly state when you are permitted to launch attacks or scans (in future phases). THIS IS JUST INFORMATION GATHERING VIA OPEN-SOURCE INTELLIGENCE (OSINT) METHODS unless explicitly stated otherwise.
2) DO NOT post any information in the sub (posts or comments). This spoils it for other people. If you want to discuss what you've found, please use private methods such as direct messages, or other platforms (don't use our Subreddit chat or Discord either). Anyone found to be spoiling the event will be banned from the subreddit immediately. You may disclose information and methods in the Post-Op discussion megathread.
3) DO NOT attempt to log in or recover any email addresses found (including social-media accounts). This is not in scope of the event, and risks getting the accounts taken down, ruining the event for others.


3) USEFUL LINKS + HOW TO SUBMIT INFO
Subscribe to our Subreddit - SecurityRedTeam
Register For The Event Here - Google Forms
Help Guide #1 (1st July) - Google Docs
Join The Live Discussion And Get Support - Discord
Submit Information To Earn Points - Slack
View The Leaderboard! - Website


4) NEW CONTENT, TIPS, HINTS AND LEARNING MATERIAL
New content will be added to the Intelligence Report every 3 days, so look out for updates! This provides everyone with more chances to earn points, and spot information that's hiding out there.
We will also be posting hints, useful information, and short training-style articles every 3 days, after all, this is a training exercise, and we want everyone involved to learn something new!
REMEMBER, new content will be added continuously over the 2 week period. Re-checking sites and sources multiple times throughout the event may reveal additional results!
July 1st - Opening Hints - What is Information Gathering and OSINT? (X) Read our article here: https://docs.google.com/document/d/1KNJhb3HrNXYzkh8G9lb-ayZ0kG7U8AuEIx-Zchsk6KE/edit?usp=sharing July 4th - COMING SOON July 8th - COMING SOON July 12th - COMING SOON 


5) FAQs
This section will address any major frequently asked questions. Please check here first before posting for support! We'll continuously add new content here, throughout the event.
Alternatively, if you need support, reach me on Discord using @Known_Divide!


6) Special Thanks + Event Staff Recruitment
I wanted to say a special thanks to u/LivingBillNye who very kindly donated Bitcoin, helping to cover some costs that this event required. I really appreciate it, and it went a long way.
On a side note, we're looking to recruit some staff that help us create events. We need both technical individuals, to help create and maintain virtual infrastructure, and non-technical members to help write a story/background information for our events to make them more immersive, digital graphics artists, and more. If you're interested in joining our Events Team, please send a Mod Mail, and we'll send you the recruitment form. This'll look great on your CV / in job interviews!


7) What Happens Next? + Rewards
This event ends on the 14th of July, and there will be a Post-Event discussion megathread, where everyone can unwind, share their experiences, make suggestions, and help us shape our future events. At some point in the near future, we will host Operation Icarus Phase 2 - Reconnaissance + Vulnerability Assessment. This phase will involve SRT-owned virtual infrastructure, that can be interacted with. In this part of the Operation, we'll teach you how to get hands-on with real-world tools, so you can develop technically, and methodically. Stay tuned for more information!
Rewards will be offered out to Teams and Individuals. More information will be announced soon!

*****
Please note, this is our first attempt at an online event, and was all completed by 1 individual. Further events will become much more detailed and immersive, not only in terms of content, but also story and educational aspects. We appreciate your patience with any issues, and any feedback will be extremely valuable.
submitted by Known_Divide to SecurityRedTeam [link] [comments]

r/Bitcoin recap - March 2019

Hi Bitcoiners!
I’m back with the 27th monthly Bitcoin news recap.
For those unfamiliar, each day I pick out the most popularelevant/interesting stories in Bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in bitcoin over the past month.
A recap of Bitcoin in March 2019
Adoption
Development
Security
Mining
Business
Education
Regulation & Politics
Archeology (Financial Incumbents)
Fun & Other
submitted by SamWouters to Bitcoin [link] [comments]

Ransomeware Cyberattack Mega-Thread

Hi folks,
In light of the ongoing world-wide cyberattack/ransomware issue at the moment, we have decided to set up a mega-thread to contain all of the news and updates as things unfold. If you find new news or stories about the attacks, please do not submit them to the sub, please submit them here and I will periodically add the new links to a growing list. Pre-existing posts will remain but all new posts will be removed and directed here. Thank you to everyone who has posted and help spread the news so far!
EDIT: You can download the standalone update here directly from Microsoft.
SEE ALSO: /PCMasterRace discussion
(Sorted by newest first) (Updated May 15th 4PM (-8gmt))
Submitter Discussion Link
ManiaforBeatles Discussion Researchers see possible North Korea link to global cyber attack
jimrosenz Discussion Hardly Anyone Paying the Hackers? Because Using Bitcoin Is Hard
Ilikespacestuff Discussion The WannaCry ransomware has mysterious ties to North Korea
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submitted by abrownn to technology [link] [comments]

I'm an Identity Thief and I Want My Identity Back [Part 1]

Found this on a darkweb forum. It was posted only yesterday, and I thought you all might find it interesting. Fair warning, there's supposedly more to come, according to the comments on the forum, so this isn't an all inclusive post. I decided to paste it here in real time as it was posted instead of waiting until they were done putting it all online.
From here on out, this is a direct copy-paste of the post, plus some formatting for Reddit.
 
 
I fucked up. Badly.
My whole life has been a great, big fuckup, but this really takes the cake. I'll be dead soon, so it can't get much worse.
My name is Michael Kay, also known as Neale Keaton. If you're running your little bots trying to find my name, it'll match this post. Hello, my little darkweb stalkers.
I'm about to give you my version of events. I'm about to show you that you're being played like the gullible little basement dwellers you are.
So sit down, go fullscreen, and read this through to the end.
Because I think that by the end, you'll see things my way.
 
I'm an identity thief. Have been for four years. When I got out of the military, I couldn't adjust back to "normal" life. I got stuck in the same cycle that other vets do.
No job, living on savings from my military income, and trying to kick my drinking habit.
After almost a year, I came to a brutal conclusion that is the reality for many people in this economy: my identity wasn't worth shit.
I was only a few months away from homelessness, had no prospects at a job, and was lacking in the social etiquette needed for dating. I was an only child of two only children. Grandparents were all dead, and my parents... well, I wanted nothing to do with them. They were the reason I joined the military and left home at 18.
Again, my identity was shit.
But, my drunk and sometimes high brain had a thought that kept repeating itself.
What if I were someone else? Someone with a good background. Some work experience, proof that I was a good employee, maybe even a degree.
In the military, I got to share a training ground temporarily with some of the boys heading into the Army Cyber Command. We got a few chances to swap stories, and they talked about the things they were learning. One guy was especially cocking about how "good" he was at navigating the darkweb. He regaled us with stories about finding illegal identities and firearms online before he even joined the military. He told us that the darkweb was full of everything you'd need, legal or illegal.
With that memory in mind, that's who I turned to.
In a move that further diminished my savings, I bought myself a nice identity off the darkweb. A driver's license, social security number, the works. It came with years of taxes being paid on-time, and some falsified work experience. If I paid extra, the people I bought it from would even pick up the phone when the prospective employer called and recommend me as a good employee. They had a fake website for the company and everything.
They even told me that their services were geared towards people like myself. Those unfortunate enough to have a bad identity. People who just needed the leg up of a trustworthy social security number.
And it worked.
I followed their guidelines, and true to their word, I got a job. From my Bachelor's degree in Business Management, I landed a position as a store manager for a small retail chain.
During the day, I went to work and pretended I knew what the hell was going on.
At night, I got a couple of dated self-help books from the library so I could make it look like I knew what I was doing with all the spreadsheets, scheduling, profit and loss statements, and anything else I was given.
I worked hard. I didn't sit on my ass and let my identity carry me. I worked to earn what I'd been given, and it was the only way I could live with what I'd done.
I was told that the identity was from a child who had died at birth, yet the social security number had not been discarded. The people I bought it from had "raised" that social security number. They hacked into school databases and inserted their name and grades, and did everything they needed to make the kid look like he'd grown into the man I was.
Or rather, the man whose shoes I would step into.
That identity saved me.
But good things can't last forever.
 
While the identity gave me a second chance, it didn't give me good money. The job was good enough to subsist on, but after a year and then two years, I found that I was unable to save anything. At the rate I was going, I'd be working until I was 65 years old and yet have nothing to show for it.
Once your basic needs are met, higher needs come into play. I learned that while reading books about business. Books about how to understand your customers. Even if all their basic needs are met, people are never satisfied.
We crave purpose. We crave something higher. Something better. All the time and always. No matter how high you go, you'll always find something more to want.
The same psychology that has been plaguing humanity for thousands of years, affected me.
I didn't want to be a store manager my entire life. But I also wasn't sure what I wanted.
So, I explored. I read even more books. I'd never read that much in my life, but I was on a mission. I was searching for something, some kind of meaning. I'd been given a second chance, and I wanted to do something with it. But I had no idea what it was.
My first wrong decision, which led me to where I am now, came during work. I was manning a register while one of my employees took a break, and a customer left their debit card behind. I didn't notice it until a few customers later, when one held it up and said "I think someone forgot this."
I took it, stuck it in the bottom of the cash drawer, and thanked that customer.
My employee returned, and I went back to my office to work on more spreadsheets.
At the end of their shift, the employee, whose register I had taken over, brought me the card. I told him I'd take care of it, and took it for safekeeping.
As I turned it around in my hand after he left, my brain started to run things over in my head. I had questions.
What was to stop me from sliding this card through the card reader at a register, choosing to process it as a credit card, and withdrawing cash? Who would know? How would they trace me?
The store didn't have cameras. We were in a good enough neighborhood that my superior had decided not to pay for them.
So, in all seriousness, who would know?
Nobody.
 
My plan was devised while sitting in the office.
It was just past lunch and time for a couple more employees to take breaks. I walked over, card in my pocket, and told the cashier that it was their time for a break. They happily walked to the break room, and I slipped into their place.
The other cashier and I worked through a couple more customers, then we had nothing to do. The store wasn't busy during this time.
I told the other cashier to take some returned merchandise and enter it into the inventory computer in the back. They obeyed, and I had my chance.
Swiftly, I moved to the other cashier's register and typed on their machine. I logged in under their name. They were new, and I had just barely trained them on the system. I only knew their password because it was literally "1234567". I'd seen them type it so many times that I had incidentally memorized it. Their login was the key to my plan.
With their account open, I scanned a pack of gum and rang out the "customer." I slid the card through the card reader, punched in $100 in cash to withdraw, and waited for the approval.
Ding.
Approved.
The cash drawer popped open, I extracted a couple tens, some fives, and a 20 before slamming it closed. I snatched the receipt, stuffed everything into my pocket, including the gum, and went back to my register.
When the other cashier returned, I told them I needed a few minutes in my car. That's where I hid the gum, receipt, and cash.
On my way back in, I used my shirt to wipe the card clean of any fingerprints. I dropped it by the curb on my way into the store, stomping on it a couple of times to make it look abused.
Taking a deep breath, I walked back inside.
Son of a bitch. It worked.
 
There was never and kickback from that experiment. The customer never came to the register asking about their card, and the card disappeared from the curb outside before the end of the day. I suspect that the customer found it there when they came back for their card.
I'm willing to guess that the customer talked to their bank about the extra transaction. The bank probably refunded them and gave them a new card, and the police never showed up asking questions.
At home, I burned the receipt and the gum pack. I burned the gum pack so the barcode could never be traced to me. Just in case.
To celebrate, I used the cash to treat myself to a very expensive dinner that night.
All the evidence was gone, and I was clear and free.
And the thrill was exactly what I'd been searching for.
 
From there, I brainstormed and even researched better ways to accomplish what I wanted.
My goals were two-fold:
1) Make a decent chunk of money. Generate enough to save for long-term goals and happiness.
2) Not harm the identities of those who I used.
And, of course, not get fucking caught.
Generally, I planned this out by attacking many targets for small amounts, maybe a hundred dollars or less. If I hit six to ten targets a month, that'd be anywhere from $600 to $1000 extra a month. Which was enough.
There were a lot of technical details that I had to plan for. I couldn't keep using my store: it was too obvious and the police would be on me in a month easily. I also couldn't use the same city. Some debit cards wouldn't let you withdraw cash without a pin. I got lucky the first time. And, what if the customer didn't have $100 in their account?
I had to look at contingencies for contingencies.
I also had to set rules for myself.
Don't use an ATM. Don't use cards in stores that have cameras. Stay with crowds and look for cameras outside each store, like in the parking lots. Don't deposit the cash you took into your own bank account. Don't put it in a safety deposit box either. All kinds of rules based on my research and contingency planning.
I bought a pen-camera off of ebay which I used while going to the store. I used it to film the person in front of me obscurely. I always got in line behind a man, too.
When they pulled their card out, they often held it around their chest, like they wanted people to see their card. Rarely did people try to obscure their pins.
At home, I would pull the video from my camera for the day and hope that at least one card was legible enough that I could extract the card number, expiration date, and name.
A lot of people like to stand in line with their card on the counter until it's their time to pay. Or they hold it over the card reader like it's a race and they're waiting for the gun to fire. It's ridiculously easy for someone like me to extract that info with a camera.
I set up an account on the darkweb where I would submit the card information, and a shiny, newly printed debit or credit card would show up in the mail. They routed the envelope through a network of darkweb "MailMen" so the envelope never even used the actual postal service.
I would scuff the card up a bit, validate the data on my own card reader that I purchased through another darkweb service, and queue it up for use.
I had a queue system so the cards were never used in perfect order, and were used a few months after I had snatched their information.
I was grabbing information in stores that had cameras, so I wanted there to be time between when I grabbed it and when I used it. Sometimes this meant that the card went out of service before I could use it. But I was collecting enough cards that it didn't matter.
I had no way to know if the cards would work, so before going to pay, I would have a contact buy a song on an obscure site using the card. It was a site that didn't require the security code printed on the back of regular cards, since I didn't have those codes.
My phone would buzz after the transaction went through or failed, and I'd know whose card was next to be used. I'd get in, pay, withdraw cash, take the receipt, then leave.
After each money run, I'd burn all the evidence and hide my cash.
I had a good contingency plan for if a cashier asked for my ID. It was too expensive to get an ID for every card I planned to use once. So, I had my acting always ready to go.
"Can I see your ID?"
"Crap, that's my boyfriend's card, he's out in the car. We're just getting cash to pay the neighborhood kid who takes care of our lawn."
If the cashier asked me to go and get my "boyfriend", I'd leave the store and never come back. But they always bought the excuse. And apparently I play a gay guy pretty well. Who would've thought?
 
I know what you're probably thinking.
"God damn, Michael, get to the important parts! Blah, blah blah!"
I don't get to brag much about what I've done and how clever it was, so I'm taking my last opportunity before I'm probably shot. So fuck off.
During all of this, where it went on for three months without so much as a hiccup, I was doing other research.
I was making more money, but those needs came back again and I found myself needing more. How could I make money faster? I'd ask myself that all the time, and skim the darkweb for methods that would work for me.
That's when I turned to credit card fraud of the mail-in card variety. A new formula for making money right this second began to form.
I used a feature of the MailMan darkweb service to set up a mailing address that would forward all mail to me. Then, I went online and bought a few hundred sets of personal data that were probably hacked from some company's database.
Using this personal data, I signed up for three to four credit cards for each person. With those cards, I bought things online that I already intended to purchase for myself. Once the items arrived, I paid off the balance on the credit cards with my hard-earned money using prepaid cards that I bought with cash.
Then, after a month or two of using the card, I would withdraw $100 in cash at a store. And then I'd store the card in my hiding place, never to be used again.
If anyone ever looked at their credit reports and saw the credit card, it would look suspicious and odd, but would only be a $100 balance. They would, hopefully, just pay it off, close the card, and stop caring. Besides, my use of the card boosted their credit score. I paid the bills and fees on time, and kept the card open as long as I could afford, paying the yearly premium out of my own pocket. It was my way of saying thanks that they'd never hear.
You give me some money, I help you boost your credit score. A symbiotic relationship.
I even thought I'd earned the title of "ethical credit card scammer." No one, especially not the police, would see it that way, but that's how I justified my actions to myself.
My mistake came from not researching my "clients" before I used their identity and their card.
That's what got me caught.
But not by the police.
 
I'd gotten used to the current routine to the point where I could do it in my sleep. I was making good money, much better compared to before. I kept my job as a store manager, and it felt so much more fulfilling because I was making the money I needed overall, and had something to look forward to: the thrill of identity theft.
After some cautious planning, I rented out a nice, two-story duplex in one of my "client's" names and credit score. I kept my payments on-time and was the perfect tenant. The duplex's owner only did a soft pull on this client's credit, so it wouldn't show up on their credit report.
Regardless, I had a contact on the darkweb set up some monitoring for this identity online. He assured me that if anything went wacky with the credit that made it seem like the client was suspicious or investigating, I'd get a text. I wanted a heads up if I needed to ditch my place.
One month. It only took one month for them to find me. In the digital world, you would think one month was a long time, but it was too short for me. Too unexpected.
I was in bed, sleeping, when I heard the front door squeak open. My eyes shot open. A million fears and thoughts ran through my head. It didn't matter if it was just a thief or the FBI. Either way, the police would be involved, and I'd be caught.
I rolled out of bed silently. Watching my half-open bedroom door, I grabbed my sheets and spread them tight across my bed. I wanted to make it look like no one was home. Snatching my wallet and keys from the bedside table, I dropped to the ground and rolled under my bed. The boxes I kept under the bed for storage hid me from view once I arranged them.
Footsteps came up the stairs. I wished I'd thought to buy a gun. But buying a gun took heavy background checks, and I hadn't figured out how to bypass those yet.
Heavy boots tried to sneak down the hall. I saw two of them, one behind the other. Both black and menacing. They moved like they had training, but not much. From the way the floor bent under each step, they were both probably heavy around the belly.
The door opened as they entered the room. Upon seeing the empty bed, they paused, unsure of what to do next.
One of them whispered, loud enough that I could hear.
"Not home."
"So we wait."
I bit my lip and cursed internally. They were looking for me, whoever they were. Probably not cops: they wore jeans, not uniforms. They could be plainclothes, sure, but I just felt that they weren't cops.
I heard the front door squeak again, but the two men were too busy whispering to notice. I wondered if the door was just open in the wind.
My reply came in the form of a voice from the hall.
"Evening, fellas. Hands where I can see them."
Shit. A cop.
This guy's feet moved gracefully under him. Definitely trained.
Suddenly, the two men rushed the cop, and I watched him fall as they shoved their way past him. Through the dimness, I could see that it wasn't a cop at all. It was Jack, my neighbor across the street. He was ex-military, like me, though he'd been in the service a lot longer than I had.
I heard the front door fly open and slam shut as the two would-be thieves left the house. Jack stayed on the ground, sighing. He probably figured that pursuit wasn't worth the trouble.
I weighed my options before finally pushing boxes out of the way and crawling out from under the bed. Jack watched, surprised.
"You were under there the whole time?" He asked.
"They weren't here long, thanks to you."
Jack eyed my perfectly made bed, then where I'd crawled from.
"Smart tactic for hiding. I'll have to remember that one."
"Thanks."
We stood in the dark for a minute, feeling awkward for different reasons.
"Listen..." I said. "I'm grateful that you came and chased these assholes out, but can we not call the police? They didn't take anything, I'm not hurt, and I really don't want to deal with the hassle."
Jack chuckled. "I was about to ask you the same thing."
I looked at him in confusion. He lifted his gun, pointing it at the ceiling and showing it to me. It was a 92FS Beretta. Sleek, shiny, and well oiled.
"This girl here is illegal for me to have. I have a small rap sheet from before the military, but am still not allowed to own a gun of my own. So, I'm going to agree that we don't involve the cops."
"It's beautiful," I said, trying not to gasp from relief.
"She sure is," he grinned.
"Jack, thank you," I said, extending my hand.
"Any time," he said, shaking my hand.
 
I wondered for a few days about those thieves. There's no way they broke into my house by random chance. They were looking for me: they'd verbally confirmed that.
So who were they? Why did they want me?
I thought myself into dead end after dead end. There wasn't anything I could do until I had more information. And yet, I had no way to get more information.
I was stuck in limbo until they tried again, if they truly were looking for me, or until I could stop double checking my locks at night.
 
One night, as I lay in bed reading a book as usual, my phone rang. The duplex had actually come with a cordless phone system, which was humorous considering our cell-phone dominated world.
I answered it, not knowing who it was.
"Hello?"
"Hi, Neale. Listen, just wanted to give you a heads up. There's a weird car that's been parked outside my house for hours. People were lying down and taking a nap for a while, but perked up when you got home. Now they've got cameras aimed at your house. Don't come to the window and try to look, they'll see. I just wanted to call and tell you that before I go and talk to them."
What the hell. Breaking in is one thing, but now surveillance?
Who did they think I was?
Unfortunately, that was the question I should have pursued long before things got worse.
"Did you get their license plate?" I asked.
"And their make and model."
"Can I have it before you talk to them?"
"Sure," Jack said.
He gave me the info, and I told him I'd call him back in a bit. To his credit, Jack didn't even question what I was doing or why I wasn't freaking out and calling the cops.
I connected to Tor and sought out a darkweb site that had a backdoor into my state's DMV registration database. Only one or two states have those backdoors, and mine is one of them. Lucky for me.
I put in the license plate number and the results came back. I paid my $25 fee with the usual Bitcoin, and opened the word doc that came back.
Registered to one Charles B. Matsworth. With an address across the state from me. The database backdoor didn't transmit images, so I couldn't compare their driver's license photo with the people in the car. I was either dealing with Charles himself, or a stolen vehicle. Helpful, but also potentially not.
I hit up another darkweb site and searched for Charles. I paid my fee, then the results populated. Except there were no results. There were ALWAYS results, but this guy's name wasn't there. Which was impossible with this site. It passively picked up every name tossed around the internet and provided you with links to where it was mentioned.
But there were no results. Which means someone was actively scrubbing this guy's name from the web.
So, that's when I knew he was one of you, darkweb.
I hit redial on my home phone and got Jack back on the line. It was just past 11pm.
"Hey, Neale," he answered.
"Hey," I said, resisting the urge to peer through the blinds. "I can't look, obviously, but have you seen anything else helpful about them?"
Jack paused, probably looking out the window. "Passenger is a heavy smoker: there's a small pile of cigarette butts on his side and he's smoking one right now. They've got some Arby's wrappers on their front dash. Driver is using a telescopic lens on a pretty expensive camera. Canon, I think. Two coffee cups from a gas station in the cup holders. Car looks pretty new, just a little dust. If you took it through a car wash, it would probably shine. I'm guessing it's a new model."
I listened to him observe them, spouting off anything that he thought might be useful.
"Any of that help you out?" He asked.
"Maybe," I said, trying to think what I should do. Scare them off and let them know I'm onto them? Let them sit there and spy, hoping they don't decide to physically enter? Leave out the back? My bedroom light was on, so they knew I was home. My shadow had probably played against it a few times tonight too.
This was a situation I didn't have a contingency for.
"You should come over to my house. Sneak out around back, walk a block over, and come in through my back door," Jack said. "We can spy on the spies."
I considered it. Last time, we had scared off the thieves and not gotten any useful information. This was the most useful situation since that night. I should take advantage of it.
"Okay, I'll do that," I said. I gave him my mobile phone number so he could use that instead of the home phone.
I made my way to the back door and left, locking it behind me. Going straight back and over the back fence, I went to the next street over, then jogged three streets down to crawl through someone else's yard and into Jack's. He was waiting at the sliding glass door when I got there.
"No movement, they're still staring at the house and talking occasionally."
"Any idea what they're saying?" I asked, hopeful.
"Nope."
I walked into his living room, and found his setup. He had a pair of binoculars on a coffee table, and a few slats of his blinds were held open by paper clips.
"Have a look," he said, waving me into the room. "Need some water?"
"Yes, please," I said, picking up the binoculars.
Through the blinds, I saw the two men in their car, both heads turned towards my house. It was exactly as Jack had described. The streetlight was far away, so I couldn't make out hair colors, but one had longer hair than the other. That was about all I could make out.
Jack appeared beside me and set a glass of water on the table.
"Recognize them?" He asked.
"No," I muttered, setting down the binoculars.
"You in some kind of trouble, Neale? Borrow money from the wrong guys? Or are these just private investigators from your ex-wife trying to track you down for child support?"
Jack's tone was light and joking. He honestly didn't seem to give a shit what kind of trouble I was in.
"Not that I know of," I said weakly, turning back to the window.
"Maybe they're after the guy who lived there before me?"
"Could be," Jack said, sitting on the couch.
I turned back around to face him while he watched me with the slightest smile on his face.
"Thank you, again, for helping me figure this out," I said.
"I haven't had this much fun since my last tour. I haven't had any action since. This is exciting and refreshing, Jack. I'm happy to help."
I nodded, taking a seat as well, but keeping the window within sight.
"So, it's not money, it's not women. Is it drugs? No judgement from me, man."
"No drugs either," I said, trying to do my own thought process. For half a second, I considered telling Jack about myself. Then I realized how asinine of an idea that was. He'd probably kick my ass for stealing.
"I say we watch 'em. We won't learn anything by running out there and scaring them off. But maybe they'll do something that gives us an idea of what they're up to," Jack said. It was the same conclusion I'd come to, so I agreed.
We watched them in silence for about an hour. I was perfectly okay not talking to Jack, and he seemed okay not talking to me. We took turns at the window, and if something interesting seemed to start happening, we'd wave the other one over to look.
Nothing interesting happened until almost 1am.
They both got out of their seats and exited the car. Each one stretched, then pulled pistols out of their belts. They examined their guns, cocked them, and made their way to my house, side by side.
I waved Jack over, and he watched them try my front door, find it locked, then go around back.
"I have an idea," Jack hissed, suddenly shoving something into my hand. His Beretta.
"If they come out, open the front door and yell to me. If they start shooting, you shoot back. Give me cover to get back into the house."
"What are you doing?!" I hissed back as he grabbed at the front door.
"Getting some information!" He said before shutting the door.
I watched him drop to a low crouch and crab-walk his way to their car, which was parked at the edge of his sidewalk. The passenger window was open from the smoker, so he leaned into the car and rustled around.
I watched my house, heart beating sharply. I saw a shadow pass by my bedroom window. They would have found me not in bed by now. They could be leaving soon.
I made my way to the front door and opened it a crack.
"Jack!" I whispered. "They made it to my bedroom! Hurry up!"
I shut the door, and ran back to the window, careful not to disturb the blinds. With the binoculars, I inspected my house. The figure was still by my window, and Jack was still rummaging through the car.
The figure moved away from my window, and I dashed back to the door.
"They're coming!" I called. Jack didn't waste time. He got up and bolted for the door. I shut the front door as he entered, and we both went to the window. The men came back around my house and got back into their car.
I thought they would wait around until I came home, but the car started, and they drove away.
We both watched the tail lights disappear.
When they were gone, I turned back to Jack, who had dumped handfuls what he was carrying onto the coffee table.
"Receipts," he said. "I didn't see any badges for policemen or private detectives. Car is registered to Charles B. Matsworth, but the address is blurred out on the papers."
I blurted out half the address before I caught myself. Jack looked at me funny, but didn't ask.
"I guess grabbing the receipts was useless," he chuckled. "I was gonna say we could plot the receipts on a map and try to figure out where they came from."
"That's still a good idea," I said. "That address is for Charles, not necessarily where these guys came from."
"Pretty sure these guys are criminal. Sure you don't want to hand this off to the police?" Jack asked.
My heart skipped a beat, and I tried to sound nonchalant.
"No, I don't want to get the police involved unless it's serious."
Jack laughed out loud. "They pulled guns, then went into your house in the middle of the night. I'd say it's pretty serious, Neale."
"Okay, okay, I'll level with you," I said. "I've done some stuff and still have an outstanding warrant. If I go to the cops, I'll be arrested." That was enough of the truth to be a convincing argument.
Jack pondered that for a bit.
"What'd you do?" He asked.
"Unpaid speeding ticket," I said quickly with a shrug. "50 in a 35. That was a few months ago. If I go now, before paying the ticket, I'll probably get arrested."
Jack nodded with a slight smile. "Okay, Neale. We'll investigate it ourselves until you get your ticket paid. Then we'll get the police involved."
I swallowed hard.
I didn't intend to ever get the police involved. So I had to resolve this fast.
 
Part 2
Part 3
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