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Comparing the BEST Cryptocurrency tax software [Updated for 2020]

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Best Crypto tax software

Looking at the best cryptocurrency tax software

Last updated: March 2020 (Koinly has been added to the list)

Cryptocurrency based income is not tax-free. The court granted IRS authority to serve summons to Coinbase to gather its customer information for transactions that took place from 2013 to 2015. This was a John Doe summons which means – IRS does not have to identify specific customers, it only has to identify the conditions and Coinbase will have to dish out information related to customers who fit in that group.

The condition laid out in the summons indicates “with at least the equivalent of $20,000 in any one transaction type (buy, sell, send, or receive) in any one year during the 2013—2015 period”.

A Cryptocurrency tax software will help you manage and file your taxes thus reducing your burden. Before we get on with our Best Cryptocurrency Tax Software picks for 2020, let’s quickly examine all the things that took place in 2019 (and we haven’t even finished the year yet).

All these developments indicate one thing:  taxpayers with cryptocurrency transactions can no longer hide under a rock and hope for the best. YOU NEED TO PAY CRYPTO TAXES. A crypto tax software will help you streamline your taxes and file them.

All of these transactions trigger a taxable event

Many taxpayers who have received the IRS tax letter were surprised. Taxpayers who assumed that crypto to crypto transactions were outside the purview of the IRS capital gains tax were among those who were served these letters.    

All of the below transactions trigger a tax event:

  • Selling or exchanging cryptocurrency for another cryptocurrency (or for FIAT)
  • Buying goods or services using cryptocurrency
  • Cryptocurrency received through a hard fork creates a tax event
  • Cryptocurrency received through airdrops creates a tax event
  • Receiving wages in cryptocurrency is a taxable event
  • Receiving rental income, royalties, tips, commissions, or any type of income received in cryptocurrency is a taxable event
  • Any exchange of value using cryptocurrency instead of fiat creates same taxable event as if fiat was used

Do you need a cryptocurrency software?

do we need to pay crypto taxesIf all of your cryptocurrency transactions were in one or two exchanges, like Coinbase, that provides clean tax documents with all your transactions, then you may not need a crypto tax software.

However, trouble creeps in when you have:

  • transactions over multiple exchanges
  • movement of crypto funds from one exchange to another
  • received hard forks
  • traded extensively in cryptocurrencies during the year
  • moved funds from wallet to exchange or vice-versa 

We have observed that whenever you have transactions in more than one crypto exchange, it is a big time saver to use crypto tax software.

Problem with the information available on exchanges

Even those who want to be compliant face a bigger issue. How does one track 100s (and in some cases 10s of 1000s) of transactions without losing their mind?

Few exchanges, like Binance, do not show history beyond 90 days, few do not let you download information in any meaningful format, some do not comply with tax rules, some do not capture transaction fees and each exchange has some or other limitation.

How do you track your transactions in the midst of these hurdles?

Thankfully, there are many crypto tax software solutions available in the market that address these issues. Before we compare them side-by-side, let us look at different features that you need to look at before picking the right tax software that fits your needs.

Also Read:

Every US taxpayer in Crypto should be aware of what’s unfolding

All you need to know about the Crypto Taxes in 2019

Top 5 Best Practices for Filing Crypto tax Returns 

Key attributes to look for in your cryptocurrency tax software

For the purpose of our comparison, we will be looking at the following aspects for each crypto tax software and then we will compare them against each other.

  • Exchanges supported and wallet imports: If you have dealt with multiple exchanges and wallets during the year, you want to make sure that the crypto tax software that you pick has the best coverage, even if this means you have to shell out a few extra $$s.  Trust us, from our own experience we can say, it is worth the peace knowing that the software does the job for you.
  • Tax computation methods: First In First Out (FIFO) or Last In First Out (LIFO) are the most popular tax methods in the US with FIFO considered most conservative.  There is also another option to identify specific coins for specific transactions but that requires meticulous documentation. Most crypto tax softwares support FIFO and LIFO along with other methods that may be used by other countries.   Make sure you consult a tax professional to ensure you are picking the right tax method for you and the one that is allowed by the tax authorities.
  • Tax forms support:  The IRS requires taxpayers to differentiate between their short-term and long term capital gains. These are reported on different sections of the Form 8949. Crypto tax software that can sort the information on the proper forms is the one you want to use. Also, some crypto tax software facilitate the direct import of these transactions to tax platforms like TurboTax.  
  • Pricing options: Bear market has killed a million dreams in the crypto space. Last thing people want is to shell out too much dough on buying a tax software. However, as much as it is important to keep track of your gains, it is equally important to keep track of your losses so you can offset them on a future gain. Best crypto tax software for your situation will depend on how many exchanges you have used, number of transactions, losses you have incurred during the year, scams you have endured and many such factors. 
  • FBAR support:  The US Treasury has confirmed that foreign cryptocurrency exchanges need not be disclosed under the Foreign Bank Account Reporting (FBAR) regulations on FinCEN Form 114.  However, there is a catch regarding having transferred any fiat during the calendar year to any foreign crypto exchange that could trigger a FBAR filing requirement.
  • Customer support:  You also want to pick the crypto tax software that responds to your needs in case you run into any trouble. 

Having looked at the key attributes, let’s look at popular crypto tax softwares on the market:

Following review is an opinion. We presented the criteria that we would personally look for in a crypto tax software based on our needs. Your needs may be different. We have not used all of these software, and where applicable, we have formed opinions based on information available publicly. We may be compensated for the referral links, no other financial arrangement exist between these companies and us.

Cointracking.info

Cointracking for crypto taxIn our opinion, Cointracking continues to be one of the most popular crypto tax software. It offers most number of tax computation methods in the market.  It can get easily overwhelming to see the number of options available, however, not all options are relevant to the US and being a global crypto tax software tool – making these options available is important for other jurisdictions.  

From a mere updates and staying ahead perspective, Cointracking has no rival in our opinion.  For instance, Cointracking already has the ability to support Binance US, supports Kraken’s credit transactions, and much more.  However most taxpayers may not need as savvy a product as Cointracking if they only dealt with one or two exchanges and have few transactions. 

Exchanges supported and wallet imports: Cointracking probably has one of the most comprehensive list of exchanges and wallet imports. It supports almost all exchanges and wallets, including hard wallet imports from Trezor.

Tax Computation methods: Cointracking supports FIFO, LIFO, Adjusted Cost base (Canada), HMRC (UK only) along with eight other methods, totalling to 12 methods. For US tax purposes, the most common methods used are FIFO and LIFO.

Tax Forms support: Cointracking generates multiple tax reports for you to use depending on your need, including, 8949 PDF, 8949 CSV download, excel & PDF download of transactions itself, etc., In addition, Cointracking has direct export option to export data to TaxACT, TurboTax and Drake tax software.

Pricing options: Cointracking offers multiple price options depending on your needs. For instance, if you have less than 200 transactions, you can use their FREE option.  If you have less than 3500 transactions, their PRO version that costs $118 for 1 year, $201 for 2 years and $369 for lifetime.  For traders with transactions exceeding 3500, an unlimited version is available that costs: $251 for 1 year, $402 for 2 years and $2837 for lifetime;  Most unique feature about Cointracking is that you can pay the fees with 50 different altcoins in addition to PayPal, credit cards, wire transfers, etc.,  Users who pay the fees using Bitcoin receive a 5% discount (talk about facilitating adoption!).

Cointracking.info   
PlanDurationTransactions SupportedCost in USD*
Pro1 Year3500$118
Pro2 Years3500$201
ProLifetime3500$369
Unlimited1 YearUnlimited$251
Unlimited2 YearsUnlimited$402
UnlimitedLifetimeUnlimited$2837

*As of October, 2019

FBAR support: Cointracking does not offer FBAR support. However, if you have never transferred FIAT into a non-US crypto exchange, you may not have an FBAR reporting requirement, as clarified by the FinCEN

Customer support: You can quickly raise a support ticket on Cointracking portal.  We are not sure how we feel about the customer support with Cointracking.  They don’t list a phone number and since its a ‘reporting’ tool, there is no real need for an ‘emergency’ line, so it may not be a big deal in our opinion. Rating: OK.

  • Lifetime plans make this unique offering
  • Price options that fit most needs
  • Comprehensive solution
  • Multiple tax calculation methods that meet multiple jurisdiction requirements

  • No FBAR support
  • Customer support connectivity is not as good as other platforms

Also Read: How to use Cointracking to calculate your crypto taxes – A Complete guide for beginners

CryptoTrader.Tax

Cryptotrader taxCryptoTrader is our new favorite only next to Cointracking. Their import functionality is simple and the system is built carefully with customer experience in mind.  System walks you through the simple 6 step process to help you import data from various exchanges.

CryptoTrader also publishes guides on various aspects of cryptocurrency taxes.

Their customer care is amazing. They check in on you after you sign up and take your feedback seriously.

One of the unique features of CryptoTrader is that it helps you go back to previous tax years to pull information if you are looking to amend your previous year tax returns to report crypto transactions.

We had the unique opportunity to talk to David Kemmerer, CEO of CryptoTrader.Tax, about their platform.  In his own words, CryptoTrader.Tax is simply the most accurate crypto tax calculator on the market. This is a direct result of the years that we’ve spent developing our historical pricing engine. It puts us far ahead of the competition, and our users notice.” 

If we were to choose between Cointracking and CryptoTrader for customer support alone – we would pick CryptoTrader. And if you have less than 1500 transactions during the year – CryptoTrader is a clear winner from the price point, in our opinion.

  • Exchanges supported and wallet imports: CryptoTrader supports a lot of exchanges and where a crypto exchange is not supported, they allow CSV imports, so you are covered even if a direct API import is not available. They support over 35 leading Exchanges (and for the exchanges that they do not have native support, you can manually upload the CSV template) and almost all wallets.
  • Tax computation methods: They support LIFO and FIFO methodology. They also support Adjusted Basis method for Canada taxpayers.
  • Tax forms support: CryptoTrader supports 8949 functionality for the US taxpayers and it also has TurboTax Integration on all its plans.  1 year money-back guarantee they offer shows the confidence they have in their product.
  • Pricing options: From a price point of view, Cointracking and CryptoTrader are in similar ball park when it comes to its Unlimited transactions plan.  For taxpayers with less than 1500 transactions, CryptoTrader is a no-brainer, in our opinion.

Cryptotrader.tax   
PlanDurationTransactions SupportedCost in USD*
Hobbyist1 Tax Year100$49
Pro Trader1 Tax Year1500$99
High Volume Trader1 Tax Year5000$199
Unlimited1 Tax YearUnlimited$299

*As of October, 2019

  • FBAR support: CryptoTrader does not offer FBAR support. However, if you have never transferred FIAT into a non-US crypto exchange, you may not have an FBAR reporting requirement, as clarified by the FinCEN.
  • Customer support:  The team responds to questions quickly.  They even check-in to see how you are doing during the early days of subscription.  Messages on the chat window on their website get answered in under 5 minutes (we tested this on a weekend, and still got a response). Rating: Excellent.

  • Excellent customer care
  • Simple to use solution
  • Their unlimited pricing option is on par with CoinTracking.info
  • 1 year money back guarantee

  • No FBAR support
  • Not as comprehensive Exchange API list as other solutions

Cointracker.io

Cointracker for crypto taxesOver 10 BILLION in transaction volume has been tracked on Cointracker. They boast a massive $200 Million losses claimed through their platform. 

Unlike other tools on this list, Cointracker made it easy to access the data from the exchanges. We tried to connect Coinbase account and instead of asking for API and other complex process, it simply asked us to login to Coinbase account and that’s it. Definitely easier way to connect exchanges to the account.

Cointracker also provides PREVIEW TAX IMPACT feature where you can check the tax impact before you execute a transaction.  

They are working on integration of non-crypto accounts to the platform and provides tax loss harvesting and dollar cost averaging features.

  • Exchanges supported and wallet importsCointracker helps you sync with over 300 exchanges and supports many wallets including hard wallets like Trezor and Ledger. Cointracker supports over 2500 cryptocurrencies. When we tried to connect Coinbase.
  • Tax computation methods: Cointracker offers FIFO, LIFO, HIFO, Adjusted Cost Basis, Share pool methods to calculate capital gains.
  • Tax forms support: Cointracker supports Form 8949 reporting as well Sch D. In addition, TaxAct and TurboTax exports are available as well. 
  • Pricing options: Pricing ranges from $49 to $999. They do not have an unlimited plan.

Cointracker.io   
PlanDurationTransactions SupportedCost in USD*
Hobbyist1 Tax Year100$49
Trader1 Tax Year1500$199
Pro1 Tax Year5000$499
Satoshi1 Tax Year15000$999

*As of October, 2019

  • FBAR support: Cointracker offers FBAR/FATCA support.
  • Customer support:  They have a chat widget on their portal and promise to respond within a day.  We did not find a direct customer care line on the main site or inside the login area. Rating: OK.

  • Experience of over 10 Billion in transaction volume
  • Over 300 exchanges supported

  • No immediate customer support
  • Pricing options are bit expensive, in our opinion

Bitcoin.Tax

Bitcoin taxBitcoin Tax is what big things come in small packages.  It is a simple, almost archaic, interface. Offers affordable pricing options for individuals with simple transactions.

  • Exchanges supported and wallet imports: Bitcoin.Tax offers support for over 20 exchanges, with the option of uploading data from any exchange using a CSV format.
  • Tax computation methods: Bitcoin.Tax offers FIFO, LIFO, average cost methods to calculate capital gains.
  • Tax forms support: Forms 8949, 8824 are supported in addition to direct import to TurboTax and TaxAct.

Pricing options: For individuals, price starts at $29.95 and for traders price starts at $99.

Bitcoin.tax   
PlanDurationTransactions SupportedCost in USD*
Individual1 Tax Year10,000$29 to $49
Trader1 Tax Year1,000,000$99 to $399

*as of October 2019

  • FBAR support: No FBAR support on the platform.
  • Customer support:  Bitcoin.Tax has FAQs listed on their website and if the question you are looking for is not answered, they give you an option to email them which they revert back within 2 business days.

  •  Simple interface
  •  Great option for people with fewer transactions
  •  Budget solution

  •  Heavy reliance on CSV imports
  •  Customer care is not one of the best (compared to others on this list), in our opinion.

Koinly.io

Koinly Tax SoftwarePerfect for new and experienced investors alike, Koinly offers extensive support without complicating the reporting process. Offering coverage in over 20 countries, support for thousands of listed cryptocurrencies, and portfolio tracking capabilities, Koinly is one of the best crypto tax tools to turn to when tax season rolls around and you need to get your taxes done quickly and efficiently.

Exchanges supported and wallet imports: No matter which cryptocurrencies you deal with or exchanges you use, Koinly has you covered. With support for over 300 exchanges, 10 blockchains, and over 6,000 cryptocurrency assets (not to mention the ability to easily import data through API keys, public keys, and CSV files), there’s nothing stopping you from reporting. The platform even supports margin trading!

Tax Computation methods: As stated on their website, Koinly supports all countries that utilize FIFO, LIFO, and Average Cost accounting methods. They also offer support for countries that aren’t listed directly on their website (although users will have to contact them directly to learn more about coverage in their country). 

Tax Forms support: Koinly offers downloads for Form 8949, Schedule D, K4, and FBAR, with the website suggesting that they offer more forms than those listed publicly. Additionally, Koinly supports exports to major tax software providers like TurboTax, TaxAct, and Xero. 

Pricing options: Koinly has three main pricing structures (with the ability to create a custom solution if need be). The first is the Hodler plan, which costs $79 per year and allows individuals to import up to 300 transactions and receive the basic features of the platform (income and capital gains report, tax report for any year, all exchanges and wallets import capabilities, etc.). The second is the Trader plan, which costs $179 per year, offers support for up to 3,000 transactions, and includes priority support. The final plan listed on their website is the Oracle plan, which costs $399 per year, offers support for up to 10,000 transactions, and review and import assistance as well as early access to new features. It’s important to note that Koinly is free until you need to download your report. After which, you will purchase one of the plans listed above.

Koinly.io      
Plan Duration Transactions Supported Cost in USD*
Oracle 1 Year 10,000 $399
Trader 1 Year 3,000 $179
Hodler 1 Year 300 $79

*As of February 2020

FBAR support: As we stated in the “Tax Forms support” section, Koinly offers FBAR support, amongst other forms of support that you may not see on similar tax platforms.

Customer support: Koinly offers two contact methods: live chat and email. Both are sufficient given the fact that their tool is simple to use and that users who purchase the two most expensive plans receive priority support and other forms of assistance. Overall, customer support leaves little to be desired. 

  • Margin and futures support for Binance, Bitfinex and others
  • Affordable plans for all kinds of users (with the option for custom plan building)
  • Extensive coverage across hundreds of countries
  • Easy import for thousands of assets and hundreds of exchanges
  • Comprehensive tax preparation for multiple jurisdictions
  • Easy to use platform with portfolio tracking capabilities
  • Free trial until you download your forms

  • Koinly doesn’t support Uniswap and Kyber transactions atm so you have to do some manual work to get these in correctly. The team did assure us that this will be added in 2020.

TokenTax.co

Tokentax for cryptocurrencyTokenTax offers a crypto only as well as fully assisted service models.  Within the fully supported service model, users can take the help of the tax accountants who can help with tax returns including crypto transactions.

Exchanges supported and wallet imports: Token Tax boasts support to a massive list (over 260) of crypto exchanges and where an API is not supported, they have the CSV upload option.

Tax computation methods: According to this demo video, TokenTax supports 4 types of tax methods: FIFO, LIFO, Minimization and Average Cost.

Tax forms support: Form 8949 is supported and Direct export to TurboTax is available as well.

Pricing options: Price depends on whether you choose a self serve model or CPA assisted model.  The price range starts from $65 and goes up to $1999. The gold option includes IRS audit assistance.

Tokentax.co   
PlanDurationTransactions SupportedCost in USD*
Basic1 Tax Year500$65
Premium1 Tax Year3000$199
VIP (CPA Assisted)1 Tax Year20000$1499
Bronze
(Full tax filing)
1 Tax Year3000$499
Silver
(Full tax filing)
1 Tax Year3000$999
Gold
(Full tax filing)
1 Tax Year20000$1999

*as of October 2019

  • FBAR support: TokenTax offers FBAR assistance, for the basic and premium plans there is an additional charge of $50, other plans carry unlimited FBAR support.
  • Customer support:  Probably the only site that actually lists a phone number on the website and their chat boasts to answer messages in under 5 minutes. Rating: Excellent.

  • CPA assistance available
  • IRS audit assistance in premium plans
  • Customer care that includes chat and phone options

  • Pricing options are bit expensive, in our opinion
  • No unlimited transaction plans

ZenLedger.io

zenledger for cryptotaxDemand for ZenLedger has soared compared to last year. Teeka Tiwari, one of the most popular figures in the crypto space, recommended ZenLedger to his followers. That may have something to do with the shift in price tiers at ZenLedger.

The tool offers a full range of support from audit report to calculating crypto income to mining/donation capture, ICO/Airdrops support, Tax Loss Harvesting (tracking losses in crypto and offsetting them against regular stock trades, and loss carry forward).

ZenLedger also supports FinCEN/FBAR alert.

Exchanges supported and wallet imports: ZenLedger has focused on US taxpayers from the get go.  Their list of exchanges may not be as impressive as Cointracking or TokenTax but most taxpayers do not deal with as many exchanges, and ZenLedger does cover major ones.  For the ones that they don’t cover, they offer CSV upload.

Tax computation methods: FIFO and LIFO are the methods that are available, however, they may consider adding specific identification once the rules are clarified by the IRS.

Tax forms support: Zenledger offers 8948, Sch D and FBAR/FinCEN support through their platform.

Pricing options: ZenLedger has picked up a lot of buzz.  This becomes evident from their change in fees structure.  Last year, they had 3 pricing plans and one of them was FREE.  They no longer offer free plan and now have 4 tiers.

Zenledger.io   
PlanDurationTransactions SupportedCost in USD*
Starter1 Tax Year500 

($50K total asset value)
$149
Premium1 Tax Year1000

($300K total asset value)
$399
Executive1 Tax Year4000 

($1M total asset value)
$799
Unlimited1 Tax YearUnlimited$999
 

  • FBAR support:  ZenLedger was among the first ones to provide FBAR/FinCEN alerts. They continue to support the FinCEN alerts in their tool.
  • Customer support:  Like TokenTax, ZenLedger has chat option that promises to reply in under 5 minutes.  We tested this and Pat Larsen, CEO, answered our question on the chat.  They don’t have a customer support number but there is an email to reach out to the team. Rating: Excellent.

  • ICO/Airdrop Assistance and Tax Loss harvesting features
  • US focused
  • Easy to reach customer support

  • Limits on number of transactions and asset value

Which crypto tax software to pick based on price?

In our opinion, if price and value is a factor – then Cointracking.info and CryptoTrader.tax emerge as clear choices. 

Under 200 transactions CoinTracking at $0

Upto 3500 transactions: CoinTracking at $118 for 1 year ($369 for lifetime)

Unlimited transactions: CoinTracking at $251 for 1 year ($2837 for lifetime) 

Unlimited Transactions, excellent customer care and competitive pricing: CryptoTrader.Tax at $299

Which crypto tax software to pick based on complexity & price?

COMPLEX: Taxpayers with multiple exchanges, wallets, and numerous transactions

In our opinion, Cointracking.info and CryptoTrader.Tax still come up at the top purely based on the cost and the tool efficiency. However, TokenTax.co jumps the ranks because of the extensive exchange list and ease of use, not to mention the customer support.  

If you dealt with way too many exchanges that are not supported by Cointracking.info or Cryptotrader.tax, the closest best is TokenTax.co in our opinion.

Also read: How to pick right Crypto Tax advisor to help you.

Please consider using the referral links in this article to avail these discounts:

Cointracking Referral gives you 10% Discount and 5% more if you pay with bitcoin.

Cointracker Referral gives you 10$ Discount

Cryptotrader.tax Referral gives you 10% Discount

Zenledger: Referral gives you 10% Discount

Tokentax: use cryptotapas exclusive discount code “CRYPTOTAPAS” for 10% Discount.

Koinly referral.

Frequently Asked Questions

Q: The solutions at the top of your list do not support FBAR while others do, why then have you ranked them so high?

A: FinCEN recently stated that they are working on the reporting requirements on FBAR for cryptocurrency and in the interim stated crypto exchanges may fall outside the purview of FBAR reporting with one exception: FBAR reporting requirement, as clarified by the FinCEN. FBAR reporting on its own falls outside the income tax return filing process, and this is the reason – we have not slashed the ranking of some of the solutions on this list. 

Q: Have you focused heavily on pricing in assigning these ranks?

A: Yes, because that is what is important for us and so we did consider that as one of the main factors, however, it is not the sole factor as you can see in the review above.

Q: Do you have financial incentive behind these rankings?

A: Where available, we have used the referral links. In most cases, referral links offer discounts to the users which are otherwise not available if you were to visit these platforms directly.  Referral rewards are public information and we do not have any other incentives outside of referral rewards.
Q: Should I rely on your rankings?
A: No. These rankings are based on what is important for us and our opinion of it.  What is important for us may not be as important for you. For example, if you are an American Trader who has multiple foreign exchanges where you have transferred fiat – in that case, FBAR and FATCA reporting may be of utmost importance to you and our number 1 recommendation may or may not suit your needs.  Please consult a professional for your specific needs.

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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CryptoSpace

Is Elrond better than Ethereum? Should I invest?

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Elrond Token review

Elrond(ERD) Token Review

Would the modern magic of internet work if we were still using dial ups? If you are from the generation that doesn’t know what a dial up means, it looks like this:

AOL Dial Up Internet Connection Sound + You’ve Got Mail (America Online) 90’s

Take a walk down memory lane and listen to the AOL (America Online) Dial-up internet connection sound and the famous You’ve Got Mail. Subscribe to Adventures…

Essentially, it would take you 30 seconds to 3 minutes to connect to the internet and open a text email.

If you were to load the YouTube website at the 56kbps speeds (considered good in those early internet days), it would take you probably 20 minutes.

We tried to load YouTube at 56 kbps speeds and after 7 minutes we were still waiting for the page to load. Compare that to the broadband that loads YouTube in a split second.

You can test what it feels to browse at 56kbps here.

While it is quite an extreme and dramatic example, I think that is the closest you can come when you try to explain what Elrond is in comparison to Ethereum.

At its current state, Ethereum processes 15 transactions. Compare that to Elrond which processed 35000 transactions during the test net run.

Obviously, the test environment is different compared to the real world.

Ethereum 2.0 could solve some of Ethereum 1.0’s flaws with claims of 100,000 to Million TPS. That is something we have to wait and see.

OK, what is Elrond?

There have been at least 100 Ethereum killers on the market since the birth of Ethereum.  Ethereum (Classic) couldn’t kill Ethereum, so we are not sure others will.

What is Elrond

Ethereum currently has serious scalability and TPS issues. Listen to this clip where Vitalik admits that Ethereum 1.0 cannot scale.

No Title

ICO prospectus: “Build scalable apps on Ethereum.” Mod: “Youre saying the concept of launching something that doesn’t scale then rebuilding it as something thats scalable was part of initial the plan.”Lubin: “We knew it wasn’t going to be scalable for sure.”Vitalik: *nods* pic.twitter.com/MBSFkQeugj

Ethereum 2.0 could be a whole another story.  However, it is not a reality at the time of this writing.

Elrond on the other hand already delivers on what Ethereum 2.0 is ‘aiming’ to.

In a somewhat hyped elevator pitch, Beniamin Mincu, CEO of Elrond, said that Elrond is a 1000x improvement over other protocols in the blockchain space.

In a nutshell, Elrond offers a high throughput blockchain ecosystem that makes use of sharding that ‘scales’ (adapts) with the demand put on the network.

This adaptive sharding helps Elrond to be efficient, secure, scalable and provide a high rate of TPS.

This is why Elrond boasts itself as A highly scalable, fast, and secure blockchain platform built for internet scale.”

ERD Scaling

What makes Elrond Special?

The strength of Elrond, in our opinion, is not in its novel or groundbreaking innovation.

It is in the simplicity of picking the ‘best’ of all the blockchain protocols that preceded and only solve the issues that these protocols failed to solve.

For instance, Elrond picks sharding from Zilliqa but makes it ‘adaptive’.  It picks interoperability from Cosmos and implements it at Virtual Machine level.   

Elrond says it as much in its whitepaper: “Elrond was designed upon and inspired by the ideas from Ethereum, Omniledger, Zilliqa, Algorand and ChainSpace.”

If we are to compare blockchain revolution to the internet, we have to assume that many companies will be replaced by newer solutions. 

Whether Elrond is that ‘next generation’ blockchain or if it will be eaten away by another project is something we have to wait and see.

For now, let’s focus on what Elrond promises that makes it special.

“1000x improvement” over its predecessors

“Elrond is a new blockchain architecture that can bring 1000x cumulative improvement in scalability, throughput, transaction speed and transaction cost,” that is how Beniamin Mincu, CEO of Elrond, explains the project.  

Scaling

Elrond promises to be able to ‘adapt’ to the scaling needs of the network.  The project uses what is called ‘adaptive sharding’.

For the technically inclined, here an excerpt from the whitepaper:

“Elrond proposes a dynamically adaptive sharding mechanism that enables shard computation and reorganizing based on necessity and the number of active network nodes. The reassignment of nodes in the shards at the beginning of each epoch is progressive and nondeterministic, inducing no temporary liveness penalties.”

Sharding is the process of breaking down a big problem into small ones to solve it faster.

Security

Elrond uses a modified version of Algorand’s Secured Proof of Stake concept.

Secure Proof of Stake randomizes the ‘selection of a node’ so that security is not compromised through 51% brute force.

Elrond goes one step further on this sPoS model where it introduces ‘stake and rating’ criteria to be even eligible to be randomly picked as a node.

Adaptive sharding is the ability to scale up or down the number of shards depending on the transaction at hand.

Obviously, that is a dumbed down English explanation of it, as we understood it.

This makes selection of nodes ‘random’ while taking meritocracy into consideration.

The rating is dynamic and is recalculated at the end of each execution.

ERD Token

Many investors in the crypto space don’t care what the project does if the tokenomics are weak.

  • Transaction fees

Elrond’s utility is acting as the ‘native’ token on the network to pay for the transactions. The more transactions that take place on the network the more Elrond will gain in demand.

  • Staking

Elrond offers crazy returns on staking. This means, there is a probability that many tokens will be locked out of circulation which could boast the price.

  • DApp Deployment

Like any other blockchain network, Elrond token acts as the ‘utility’ on the DApps deployed on the network.

  • Validator reward

Validators are rewarded for their work and Elrond token is used in disbursing these rewards.

Team

Crypto space is excited about the team that is involved in the Elrond project.

Just looking at the profiles of CEO, COO and CIO showcases that you are not dealing with a group of wannabes.

Elrond Team

The team brings in the right mix of technical prowess and business acumen.

Many blockchain projects either lack a strong technical forte or suck at running the business.  Elrond may not have that problem due its ‘experience mix’.

Partnerships and Integrations

This is one project that is making a lot of buzz in the past two months, with continuous updates and partnerships. Here are a few:

ERD and Indacoin

ERD and Indacoin

Indacoin is a fiat gateway with over 500K users which allows users to buy crypto with Visa or Mastercard using USD, GBP, EUR and many other currencies.

ERD and dfinance

elrond and dfinance

Elrond will work together with dfinance to enable users to build Elrond native assets as well as allow Elrond users to access DeFi platforms on dfinance.

ERD and LDV

Elrond and EDV

ERD tokens are now available on LDV, a Romanian crypto exchange and a fiat gateway. ERD/EURO and RON/ERD pairs will be available on the platform.

ERD and Crypto.com

elrond and crypto.com

Users of Crypto.com can now buy ERD token on their app. Crypto.com is considered one of the easiest modes of buying and selling crypto. With deposits and withdrawals of erd token enabled on crypto.com, the token is now available for over 3 million users of crypto.com

ERD and Utrust

Elrond integrated with one of the leading payment gateway for ecommerce, Utrust.

ERD and Swipe

Swipe partnership elrond

ERD is partnered and now available on swipe, a multi currency digital wallet. Swipe has over 500K users.

The other partnerships and integrations include Stateless Money, Staked, Moonpay, FinNexus, and many others.

Elrond is gaining traction fast and furious. Will it amass enough steam to surpass other blockchain protocols?  

We have to let the time answer that question.

ERD Token Metrics

ERD Token Metrics

Source: Elrond

*These token metrics are about to change after the EGLD swap.

Some pump and dump chat

You will notice that Elrond is showcased on the Samsung official video introducing Samsung Blockchain.

Samsung Blockchain wallet elrond

First and foremost thing everyone is excited about is its mainnet launch. 

We believe the rise in price is not just because of its mainnet launch, but also the high staking rewards that are expected to yield after the mainnet launch. 

With over 5 Billion ERD tokens already staked during the testnet, it is possible that more users will stake their tokens for passive income.

Risk factors

Late to the party, not to the town!

There are a lot of blockchain platforms in the blockchain space. Many promise sun and the moon with 100K to a million transactions per second.  

Most of these promises are just that as of now, promises.

Elrond is late to this TPS race, however, it could do what others have failed: Actually live up to its claims on the Main net.

In this sense, Elrond is late to the TPS party but it is not late to ‘make a mark’ for itself in the blockchain town.

More advanced projects in the space

What happens when Ethereum addresses its TPS issues, scalability aspects and makes it incredibly easy for people to launch DApps?

Ethereum already has a massive penetration in the space that it could leverage.

Beyond Ethereum, there are other projects like Zilliqa that could pose stiff competition to projects like Elrond.

And, do not forget Cardano, a project that is preparing its arsenal for a hostile takeover of the crypto space.

What is a head in Elrond’s Roadmap

Elrond Roadmap

Source: Elrond

Elrond Swap

ERD to eGLD

With the launch of Elrond Mainnet, Elrond token (ERD) will be swapped for Elrond Gold (EGLD), at a 1000:1 ratio. Simply put if you hold 10,000 ERD tokens, it will be swapped into 10 EGLD. In terms of price, if the current price of one ERD is $0.024, the price of 1 EGLD (*1000ERD) will be $24.
Elrond has garnered quite a lot of buzz before the mainnet, now it all comes to how the project is going to progress beyond mainnet.

How to swap ERD

As per their official Telegram channel, exchanges are making preparations to support Elrond swap to Elrond Gold.  The tokens will be swapped in about 30-60 days and the ERD(ERC20, BEP2) will be replace with eGLD. Check with your exchange and look out for communication about the swap support. Till then, ERD trading will run as it is over the exchanges.

Pros of Elrond Token Swap

The swap is expected to reduce the current total volume of 21 Billion ERD tokens to 20 million eGLD and to 30 million over the next ten years which in theory should make the coins dearer.  How this will work in reality is something we have to wait and see. Case in point but in reverse is VeChain, which was trading at $9 before the swap at the ratio of 1:100 and the price dropped so low that it has not yet recovered.

Cons of Elrond Token Swap

In our opinion, it is easy for a coin to jump from 1 cent to 2 cents and 2 cents to 4 cents, however, there is a psychological barrier from investors to let a coin trading at $20 to move to $60. However, if you see from a percentage, the underlying gains are the same. 1 cent to 4 cents is a 400% jump, however, it will take a lot for a $20 to jump to $80. If Elrond proves its value in the blockchain space then the project may pump in spite of the denomination.
Thank you for reading and sharing this article. Stay safe and healthy!

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We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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V-ID is bringing real world use case to Blockchain, can it succeed?

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Vidt Token review

VIDT Review, use cases, future prediction

What follows is the byproduct of our research on whether or not V-ID is a good project.  

We have a tendency to FOMO, so read everything with a grain of salt and always DYOR.

What is V-ID?

Anything digital can be altered. How then can you be confident about the authenticity of the digital files you are dealing with?

“V-ID is a blockchain powered document certification service. The VIDT API enables organisations to certify and secure their digital data against fraud and manipulation.”

You can tag digital files using V-ID and anyone around the world can verify its authenticity by simply using V-IDs free checker.

If any information is changed within the file, V-ID flags it.

This technology has an immediate use case in the real world to fight digital frauds. Especially in dealing with:

  • Invoices
  • Scientific papers
  • Contracts
  • Official documents
  • Diplomas/certificates
  • Data from Internet of Things

Watch this quick video to learn about V-ID.

Introduction to VIDT V-ID Blockchain Powered Validation

The V-ID validation service uses blockchain technology to end all document fraud. Our client base, with customers like Airbus Space & Defence, operates in va…

Take a simple example of purported crypto ‘recommendation reports’ that float on the internet. How do you know they are what subscribers were given?

How can you be sure that the document is not manipulated by someone to ‘alter the buy up to and sell at’ prices?

In this simple situation, using V-ID, one could verify the authenticity of the document.

In a world of Deep Fakes, a solution like V-ID can be a lifesaver.

How big is the problem that V-ID solves? 

According to the Javelin Strategy report, Identity fraud cost $16.8 Billion dollars in 2019 alone.  

Obviously this includes credit card and account takeover frauds. However, when a solution like V-ID becomes integrated, there is an opportunity to curb these identity thefts as well.

Fraud Detection and Prevention which was valued at $17.33 billion is expected to grow at an 18% (CAGR) rate from 2019 to 2025.

The more diverse our technology becomes with the advent of Internet of Things, Artificial Intelligence, Cloud Computing, Augmented Reality and reliance on smart mobile devices, the more we grow vulnerable to fraud.

In our opinion, the fraud space is only going to grow bigger and faster.  

V-ID has an opportunity to place itself as a reliable solution by leveraging the blockchain’s resilience.

VIDT Technology

Source: V-ID

Using V-ID

Any solution’s success will depend on its ‘ease-of-use’. We tested the V-ID ‘certification’ to get a taste of the platform.

When we scanned the QR code of the document, it took us straight to the document where we could easily verify that it was indeed ‘authentic’.

The ease at which you can verify someone’s credentials, certifications, diplomas, etc., is simply awesome.

Users can verify the authenticity of other documents through their free online checker. Obviously, the company has to be signed up with V-ID for the documents to be ‘stamped’ on blockchain.

V-ID promises verification in 5 seconds.  Here is a video that shows how the verification works.

VIDT V-ID verification live demo

The V-ID validation service uses blockchain technology to end all document fraud. Our client base, with customers like Airbus Space & Defence, operates in va…

All in all, the concept behind V-ID is quite simple and easy to use.  

This ease of use accompanied by an amazing use case is what forms the basis for blockchain’s adoption.  The tool makes you forget about the blockchain altogether.

Does V-ID need Blockchain?

Yes. We think V-ID has a blockchain use case.

When it comes to providing a hack-resistant environment and resiliency to the underlying system, blockchain really shines.

The V-ID makes use of blockchain the backend without inundating the end users with the intricacies of ‘how blockchain works’ is quite admirable.

“Currently V-ID offers anchoring in Ethereum, Bitcoin, IBM Hyperledger, Fantom, LTO Network, Digibyte and Binance Chain.” 

For V-ID, in our opinion, Blockchain is not just a fancy jargon to allure people to the project but rather it is a smart technology choice to meet the business objectives.

Team

Vidt Team

Source: VIDT

Marnix van den Berg, Founder & CEO, has over 17 years of experience.  He is supported by 3 other Founders on the project.

Pim Voets is the Founder and Lead Concept Design, Ceciel van Helden is the Founder and Lead Programmer, Wico van Helden is one of the Founder.  

The teams section of the website shows about 9 team members and 6 advisors, including Chris Robinson, Ex-CTO of American Express.  

Just between the 4 founding members have a combined experience of over 70 years. Wico van Helden has hands-on experience in taking a company IPO.

Progress, Case-studies and traction

V-ID has been associated with many brands.  They showcase few case studies on their website:

VIDT Case study

AMSPEC is using the V-ID technology to verify the authenticity of their inspection reports

How AmSpec protects data integrity with V-ID

Amspec has started to utilise V-ID blockchain validation technology to protect the authenticity of their inspection reports. This means that recipients of a …

V-ID made history by bringing 17th Century Rembrandt to the blockchain.  This verification was made possible with CMS Law acting as notary, collaboration with Duowes Fine Arts and V-ID.  

VIDT Rembrandt on chain – V-ID collaboration with Douwes Fine Art and CMS

For the first time, V-ID’s validation platform, known for securing digital files against manipulation, extends its activities into the physical world, by val…

V-ID is bringing certificates and diplomas onto the blockchain.  To this end V-ID has collaborated with NYENRODE and HBO Drechtsteden.

V-ID successfully installed the first IBM Watson-connected IOE sensor with V-ID data anchoring.  

IBM & V-ID install first IoE sensor on IBM NL headquarters’ roof

www.internetofenvironments.org

V-ID partners with Caltrix Consultancy to offer a tailored solution for any financial organisation to comply with KYC/AML challenges. 

LTO Network and V-ID entered into a partnership by rolling out an immediately applicable, GDPR-compliant blockchain solution for companies and governments. 

This alliance allows for any party to verify the authenticity of the diamond using the certificate, and the authenticity of the certificate using the V-ID service.

The brands with which V-ID has worked with and the diversity of the projects they have been involved in bring a lot of confidence in this project, in our opinion.

Price – Revenue Model

Companies need cash flow to sustain and grow. It is important to have a revenue plan for the company to thrive.

V-ID offers 3 different pricing options that you can see below.

VIDT Price chart

Euro 2 per file may seem like a big deal but companies have the option to use the verification only for sensitive documents.

For example, on invoices or contracts, to ensure authenticity.  

Challenges to consider

Icon Latest UpdatesOne of our favorite projects, ICON, also rolled out the Broof concept which helps organizations verify certification.

Blockchain projects, like ICON, with existing capabilities could potentially ‘extend’ their solutions in the verification arena.  This could pose stiff competition.

The verification problem is so big that it can accommodate more than one player, however, the more players you have the more it dilutes the upside potential.

What Blockchain identity verification will not solve!

Demand for counterfeits

When all is said and done, counterfeits exist because they have market demand.  Without demand a product doesn’t sustain long.

There are millions of people who want to experience luxury on budget, by choice or because of lack of choice.

The projects like V-ID cannot solve the counterfeit market for those who specifically seek them out.  

However, the project does solve the ‘authenticity assurance’ demand for people who are paying the full price for the genuine product.

Market for ‘copies’

Digital products have an amazing advantage which is its major flaw and that is: it can be replicated without much effort.

If someone is deliberately seeking out for a pirated copy of something, there is so little you can do.

VIDT, Coinmarketcap and where to buy and sell?

V-ID Blockchain has its own native crypto with ticker symbol: VIDT.

We have to specify this because there is another project on coinmarketcap with VID symbol and we had few folks who seemed to be confused.

At the time of this writing, VIDT was ranked at 224.

At this time, you can buy and sell VIDT at KuCoin.

In conclusion

Blockchain finds a great ‘real-life’ business use case in V-ID.  

The association of the project, even if indirectly, with big brands like IBM, AirBus and more is just a testament to the viability of this solution.

While it may be possible for other projects to try and emulate the V-ID solution, the focus and dedication of the V-ID team could put up a mighty fight, in our opinion.

Ultimately, the problem of fraud is quite big and could easily accommodate success of multiple players.

In the end, we are coming to the same opinion about V-ID that Chris Robinson, ex-CTO of American Express, did and that is “V-ID is a rare combination of 3 things — A great idea in a large and almost green space market. A company with a proven track record and real-world customers. And, finally, an exceptionally high quality team and advisors.

Thank you for reading and sharing this article. Stay safe and healthy!

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We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto News Today #43

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breaking crypto news

Cryptocurrency Weekly News

What a week for the crypto bulls to come out!

Bitcoin performed exceptionally well and all the hibernating Crypto bulls spewed their predictions all over the internet.  

The hype frenzy was quite unreal and we are worried about the newbies that might buy into the hype and get in at the peak.

While most hypers were hibernating, we are keeping our calm and tracking the crypto space for the past 4 years.

If you want to see all that contributed (and continues to contribute) to the Blockchain, Bitcoin and crypto adoption – you just have to see the most important news since 2017.

In the spirit of continuing the tradition of keeping up with what matters, let’s dive into this week’s digest!

Brave and Guardian bring Firewall and VPN to iOS

brave-logoBrave Privacy browser that supports the Basic Attention Token (BAT) has partnered with Guardian to bring Firewall and VPN capabilities to the Brave Browser on iOS platform. In an announcement, Brave team disclosed that “with this partnership, the companies are integrating their technologies to enable the fastest, safest, most private Web browsing experience. Brave now offers Brave Firewall + VPN, available for download from the App Store. This partnership allows people to take back control of their own data, browse the Web, and use their apps more safely and securely.”

Ledger market data breach

Ledger Nano S reviewUnauthorized third party access using an API Key has compromised the contact and order details at Ledger.  A total of 1 Million email addresses might have been compromised. According to the official statement “Contact and order details were involved. This is mostly the email address of our customers, approximately 1M addresses. Further to investigating the situation we have also been able to establish that, for a subset of 9500 customers were also exposed, such as first and last name, postal address, phone number or ordered products. Due to the scope of this breach and our commitment to our customers, we have decided to inform all of our customers about this situation.”

Coinbase explores [more] new digital Assets

coinbase best exchangeCoinbase is exploring more digital assets to add to their platform.  These 19 digital assets include, as per the official post,  Ampleforth, Band Protocol, Balancer, Blockstack, Curve, Fetch.ai, Flexacoin, Helium, Hedera Hashgraph, Kava, Melon, Ocean Protocol, Paxos Gold, Reserve Rights, tBTC, The Graph, THETA, UMA, and WBTC. Obviously, there is no guarantee that all of these tokens are going to be added but it is quite interesting to see some of the good projects making the list.

Putin signs Crypto bill into law

Russia just passed a bill that will allow the companies in Russia to issue digital assets as long as they seek and procure approval from the Bank of Russia.  According to Reuters (translated) “They can be an object of collateral, purchase and sale transactions, exchange of one type of digital asset for another. At the same time, CFAs are not and are not recognized as a means of payment.”

SEC Wants to Start Scrutinizing Binance Chain Transactions

sec crypto regulations“The Contracting Officer has determined that CipherTrace Inc., is the only source that can reasonably meet the SEC’s requirement […].  CipherTrace products are the only known blockchain forensics and risk intelligence tool that can support the Binance coin (BNB) and all tokens on the Binance network.,” read the official statement issued by the SEC.  This makes it clear that the transactions that people have conducted on Binance assuming they are ‘immune’ from the US government’s scrutiny are going to be surprised by what follows.

Cardano mainnet launched

cardano staking newsCardano has successfully launched its mainnet and introduced its ‘Staking’ phase ‘Shelley’. The entire crypto community has been eagerly waiting for the launch and has received the upgrade quite positively with Cardano (ADA) price coasting at 13 cents. Generally, when the community is not happy with the upgrades and mainnet launch, it tends to show in the negative price action. The stabilizing price movement indicates that the Cardano community has welcomed the mainnet launch.

Thank you for reading and sharing this article. We appreciate you.

We have been tracking the most important news in blockchain and crypto space since 2017. You can check out all the chronicled news here.  

Consider subscribing to our newsletters to receive these news updates in ONE neat email per week along with other freebies that we give away once-in-a-while.

Thank you for reading and sharing this article. Stay safe and healthy!

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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