Blockchain Dev: OneCoin using SQL database script to generate coins
Bjorn Bjercke refers to himself as “Mr. Bitcoin Norway” and works as a cryptocurrency blockchain developer.
As per his resume, Bjercke has
19 years experience with IT solutions, where of 12 years within the Banking and Finance sector.
In September 2013 my interest in Bitcoin sparked.
Bjercke (right) has been working as a “Project Manager / Bitcoin Block Chain Specialist” for Acando Norway since August, 2016.
Acando is a consulting company whose business concept is, in partnership with its customers, to create business value by enhancing and streamlining processes, organizations and digital solutions.
The Group has approximately 1,700 employees allocated over five countries. Acando had sales of more than SEK 2 billion in 2016 and is listed on the Nasdaq Stockholm.
Prior to Acando Bjercke was working as CEO of Right IT, a blockchain and bitcoin mining consulting company he founded in 2013.
It was during this time that Bjercke was approached by a recruitment firm, purportedly representing OneCoin, to develop a blockchain for them.
Bjercke claims he was approached by the recruitment firm Asenshia “about one year ago”.
Asenshia is run by Nigel Chinnock and claim to be a ‘specialist Executive Recruiter for the Direct Selling and Direct Marketing Industries‘.
According to Bjercke, Asenshia approached him regarding a “C Level search”.
We are currently working on a C Level search that may interest you. Can you suggest when you may be free for a call and the best number to reach you on?
A “C Level search” is recruitment jargon for trying to fill a high-ranking executive position.
Bjercke got in touch with Asenshia and learned they were looking for a blockchain developer.
Bjercke states the Asenshia representative “laid out all the details” of the position, but didn’t mention it was with OneCoin till “the end” of the conversation.
If he accepted, Bjercke had been offered the position of Chief Technology Officer at OneCoin.
The 2.5 million figure triggered Bjercke’s suspicions, which is what led to Asenshia’s disclosing the company looking to hire was OneCoin.
As with most professionals in the cryptocurrency industry, Bjercke had already heard of OneCoin and considers it a scam.
Subsequently, Bjercke turned down the position.
That in itself isn’t particularly of interest, but it provides the backstory for recent comments Bjercke made about OneCoin’s cryptocurrency backend.
After recently coming across OneCoin affiliates promoting the scheme, Bjercke made the claim that at the time Asenshia reached out to him, OneCoin had no blockchain.
They are not mining coins but they are using a MS SQL server where they have scripted coin creation.
Bjercke’s claim is based on his discussions with Asenshia, who explained to him the backend OneCoin was using at the time.
From what the rep. at ASENSHIA described, a non-technical person, it sounded much like a MS SQL, or could maybe but doubtful (be) Oracle DB, as that is way too expensive for this organization and without a credible CTO.
It was very clear from our conversation that they did not have a blockchain.
MS SQL is a
relational database management system (RDBMS) developed by Microsoft.
This product is built for the basic function of storing retrieving data as required by other applications.
SQL databases typically provide a backend for applications that require a lot of data storage. WordPress for example, the blogging platform BehindMLM runs on, uses a MY SQL database to store posts and comments published on the site.
A SQL database is certainly not something you’d be able to run a legitimate cryptocurrency on, much the less a blockchain.
OneCoin’s use of a script to generate their cryptocurrency, as opposed to legitimate blockchain mining, has long been suspected.
It explains how the company is able to seize the OneCoin balance of any affiliate at any time, double affiliate OneCoin balances on a whim, increase the maximum number of mined coins, why “mining” of OneCoin was observed to be exactly ten minutes and why OneCoin is not listed on any public cryptocurrency exchange.
It is unclear whether, after Bjercke turned them down, OneCoin hired another individual or firm to develop a blockchain.
Last October the company doubled affiliate OneCoin balances at a promotional event in Thailand. At the event, OneCoin claimed they were launching a “new and enhanced blockchain”.
To date OneCoin hasn’t announced they’ve filled their vacant Chief Technology Officer position, at least not publicly.
The “new and enhanced” blockchain meanwhile still appears to be script-driven, following recent confirmation transactions between OneCoin affiliates do not show up on it.
In layman’s terms, OneCoin not having an actual blockchain conclusively proves all they are dealing with are script-generated Ponzi points.
You invest money, OneCoin record an appropriate amount of OneCoins in their SQL database and when you cash out your OneCoin (based on an arbitrary value they set), pay you with subsequently invested funds.
Bjercke has communicated now with a few of the more prominent cryptocurrency advocates and staunch Onecoin detractors. Over a Skype conversation today, he and I spoke blockchain, side chain, SegWit, Lightning, and other crypto nerd talk; and it was CLEAR that he was the real deal.
So, I asked him what it would take to “switch off the old Onecoin *blockchain and migrate existing transaction data from (a SQL db) to a ‘new blockchain’ which is switched on, and if that task were even humanly possible.”
His response was, “Sure! You could hire 10,000 our so data entry employees from India to work full time, each handling batches of 10 (IMA) accounts at once to recreate every transaction that ever occurred, including fractions of coins, tokens bring exchanged and time stamped at different “values” and …then he started laughing.
We both did.
In other words, the Onecoin scammers, who know nothing about crypto OR blockchain, figured they could just pay someone at some point to “BUILD A NEW BLOCKCHAIN AND MAKE EVERYTHING LEGIT.”
Sorry scammers. Your Tycoon Package “Education Material” probably should have covered this if the first cryptocurrency “education package” didn’t.
But crypto enthusiasts already knew this. And THIS is why when IDIOTS like Labine and other scammers would say, “I’m a miner! I’ve been *mining the *cryptocurrency Onecoin for x months now!” it would boil our blood at how grossly stupid (and dangerous) such a preposterous statement was.
Uggh! Can this scam finally just burn to the ground now? What else is even left to prove?
I was under the impression that it would be trivial to transfer transaction history from a relational database into some sort of a centralized blockchain?
Obviously the KYC data has to be stored in a separate database, but all they need to do is to post-hoc assign OC addresses to members, sort the transactions by date and then feed them into the blockchain.
Provided their accounting is tight as it is, this would be a straightforward task that can be fully automated. Or am I missing something?
That’s an interesting idea… like a spiderweb without threads!
It would be. But it would still be illegal to participate in a Ponzi fraud so he was not interested. Apparently the reason Ruja et al. did not create blockchain themselves was that they want d it “done right” and preferably by someone with credibility in cryptocurrency world.
I am sorry, I was referring to Tim’s quoting Mr. Bjercke:
His response was,
I don’t understand why Mr. Bjercke would say something like that. That’s the job for a Python script, not for a team of 10,000 Indians.
It’s obviously a joke.
If OneCoins existing “fakechain” is just that, fake, it CANNOT be migrated to a real blockchain, because none of the data will match up.
Blockchain is secure because each transaction can be traced and checksumed and so on so individual transactions can be verified even though the accounts themselves are secure. Randomly generated gobbledygook cannot be traced and checksumed and thus verified.
You want to know what I think?
I think OneCoin IT is just a bunch of MySQL servers. I doubt these yahoos would even pay for MS SQL Server.
That poor word blockchain, used and abused everywhere..
One big problem that OC have in somehow retro fitting their money grab into a “legitimate” ledger framework, is the crucial self contradictory lie of a Proof of Work centralized blockchain.
The concept of rising difficulty (a factor only in competitive PoW mining) has been used by them to justify the price structure, the “barometer”, the mining delays and the token conversion step.
Their ledger/blockchain would consist of what anyway?
Onecoins get created and sent to a member and sit in his back office (wallet). That’s it, unless he might have got lucky and sold a few on XcoinX.
Apart from a bit of up and downline shuffling no-one pays any to anyone. The “users” don’t use it.
@garden – RE “I was referring to Tim’s quoting Mr. Bjercke”
For clarification purposes, I extrapolated one tiny piece of a longer conversation, off-the-cusp and from memory.
I’m neither a programmer or developer, and my aim was in conveying Mr. Bjercke’s attitude concerning the task of not only recreating a convincing blockchain specifically to include merging previous tx data (from who, to whom, at what time in what date, etc) and creating in-blockchain KYC for all members – perhaps the part for 10,000 Indians(?) as I recall the conversation.
What I DIDN’T include about our conversation in the comment was that I had also shared with him that up until ~March 2016 (give or take), not even the so-called “education” was behind a fire-wall, and therefore was accessible FOR FREE by simply copy/paste/ share of the access link to those documents.
IN OTHER WORDS IT WAS AN INCOMPETENT, INCOHESIVE MESS OF AMATEUR STANDARDS FROM THE BEGINNING.
The TASK, if to be made “believable,” would have therefore REQUIRED (assumedly) monumental efforts in manual re-organization, likely from a series of earlier “tracking methods,” etc.
Since Ruja claimed in her first and only “crypto interview” (with Estonian Trader, I believe) that Onecoin was divisible 8 decimal places (like bitcoin), but that at CoinRush London that there’s “no more of the 2.1billion coins left for India and Africa recruits, or “for merchants” (lol – they need more coins for merchants?
Think about that one a moment) shows the FRAUD, manipulation of truth, and absolute groveling recovery she was attempting.
My interpretation of the consensus was that ponzi points we’re passed out willy-nilly and without forethought, follow-through, or reliable/ cogent documentation since day one, and could be akin to attempting to perform an audit of a garage full of lose paper.
Just a mess was the assumption – ie., “FIX THIS QUICK, WE’LL PAY YOU!” LOL!
Why should a fully centralized ‘cryptocurrency’ need a blockchain at all?
A blockchain is per definition a de-centraliced data structure. If the transactions are handles at one spot, e.g. in the OneCoin ‘DataCenter’, a SQL-Server would do a much better job.
They claim to have a block chain because bitcoin has one, thats all.
garden is correct: the task of moving data from an SQL database to a blockchain could be completely automated, with no human data entry needed. This applies to “KYC” data as well, which could indeed be stored in the blockchain (I wouldn’t ever want to use such a system, but technically is it feasible).
However, as K. Chang notes, all the nice hexadecimal identifiers providing a façade of authenticity in blocks and transactions wouldn’t match; I assume they are randomly generated right now.
I suppose that in theory they could build a real blockchain based on some intentionally weak algorithm, so that the current random data is recognized as correct, and matching the past history; after all, they are developing a new algorithm so they don’t need to be compatible with anything.
The resulting blockchain would fit the data but be extremely weak, and probably unusable in a distributed fashion.
Still, this might serve onecoin as some sort of plausible justification for the technical part of their lies: “we made some mistakes and the algorithm is not as secure as we thought, but here’s the blockchain with all the past history”.
But of course! If you buy a product worth ONE 1.50 and pay it to a merchant wit 2 OneCoins, he needs to give you 50 ONEcents in exchange, right?
/sarcasm
@Otto – just to be clear for readers, 1.0 ONE is said to be divisible tothe eighth decimal place (like bitcoin). Therefore if the customer wanted, hypothetically he could pay for the 1.50 item in two payments, as follows:
1.4999999 +.0000001 = 1.5 ONE =PAID
The point is that member/victims have the coins to pay merchants who accept the, of course.
If I open a lemonade stand or car wash, Janet Yellen from Federal Reserve doesn’t pull up and say, “your a new merchant today, so here’s a big pile of money do you can transact with customers. Glad we got to you on time or else it would be IMPOSSIBLE for you to do business.”
#OnecoinLogic
newsbtc.com/2017/02/25/onecoin-failed-recruit-blockchain-professional-2016/
Onecoin scam news is hitting the crypto Press hard after the latest revelations and FURTHER PROOF that Onecoin is just a Ponzi point system managed in a database having no relation to Blockchain Technology 🙂
Good point at MuroBBS. DealShitter FAQ has this:
dealshaker.com/en/help-center/faq/general-questions
Funny that it only works the other way, eh?
Video: Andreas Antonopoulos – OneCoin is a notorius scam
Latest new item in the onelife.eu backoffice:
So which shell company did they use this time?
It wasn’t Onecoin that he was dealing with. It was Asenshia just like your article states. So asenshia made the offer on behalf of Onecoin.
she is created web onecoinico…
linkedin.com/in/doroteya-garbachkova-311301132/
@Oz
Sounds like onecoin office. hahahahahha.
This thing was a joke.