“Using Sequence, organizations can securely manage their financial assets in a token format on private ledgers and, soon, seamlessly transfer them across public networks.” - Chain.com ECOSYSTEM Unconfirmed: Chain.com Acquisition Fortune is reporting that "Stellar is in talks to acquire Chain" with payment in the form of lumens. This is unconfirmed, and, if it is true, it may be more likely that the acquirer is Lightyear, not SDF. Chain applies cryptography - digital signatures, zero knowledge proofs, etc - to cloud-based ledgers (read: modern databases for money) for fintech customers like Visa and Nasdaq. These customers already use the cloud for everything else, and now they want to run their ledgers in the cloud, too.



Chain’s Sequence product - a "ledger-as-a-service" - provides: Digital Signatures - Instead of having to run their own ledger inside their own security measures, customers pay Chain to run and manage their ledgers, but Chain itself cannot change these ledgers. To update a ledger, a customer has to sign every transaction with their private key that sits behind their own security measures. The amount they have to manage goes down significantly to just a private key. Zero Knowledge Proofs (or something to that effect) - The data in the ledger is encrypted in such a way that Chain and third parties cannot see the data, but they can perform computations over that data. According to Chain, “Using Sequence, organizations can securely manage their financial assets in a token format on private ledgers and, soon, seamlessly transfer them across public networks.” If Stellar is that public network, this pairing would be similar to the Hyperledger/Stellar pairing that IBM provides: businesses perform their internal transactions on a private ledger and move balances on the Stellar network when moving money across borders and between businesses.



Issues with this acquisition might include greater centralization, depending on the acquirer. Benefits of the acquisition would include using Sequence as a foot in the door for Stellar with big fintech companies, Chain’s talent, and putting lumens on the balance sheets of companies Visa and Nasdaq (who are also Chain investors, not just customers). Link PROTOCOL CAP-0002 Reorganizes Signature Verification CAP-0002 was marked as final this week and makes writing smart contracts easier. In the current approach to signature verification, operations that change signers or weights on an account (a common practice in smart contracts) may cause subsequent operations in the same transaction to fail. These failures occur because an operation’s side effects (changes to signers and weights) are not applied before moving on to verify the next operation’s signatures. CAP-0002 prevents these failures by applying the side effects of an operation first and then moving on to verifying the next operation. Link ECOSYSTEM Mobius Launches DApp Store v2 Mobius’s new DApp Store provides an open-source, non-custodial wallet interface that makes it easy to send cryptocurrency payments to apps. I’m a fan of the Flappy (Dappy?) Bird game currently on the store. Link

Disclosure: Mobius a client of mine. DEX DEX Volume Quintuples According to StellarExpert, trade volume on the DEX has already quintupled in June over May to 358MM XLM. Link WEEKLY GIF In Stellar consensus, each validator decides which validators they trust, and this list is called their quorum slice. Quorum slices overlap to form consensus. Without a central validator list, you create an open membership network. ❤️,

- Kyle ( @kylemccollom ) Did someone forward this email to you? Sign up to receive an email like this one every week. I find the most interesting Stellar developments from the week and deliver them to you every Friday morning.