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Busting seven Blockchain – Bitcoin Myths, Crowdfund Insider

Busting seven Blockchain & Bitcoin Myths

December 13, two thousand fifteen @ Five:56 pm By Therese Torris

Is there more to the current blockchain hype than there was to the Bitcoin hype of the past? Seven myths debunked. Seven reasons to be skeptical.

Two years ago, Bitcoin was at the peak of its hype cycle. The digital currency’s value skyrocketed. Enlargening tenfold in four months, it passed the $1,200 mark, the price of an ounce of gold at the time.

Then, after a duo of security breaches and scandals such as the collapse of the largest exchange Mt. Gox in 2014, Bitcoin’s value fell down to $200. The speculation madness came to a halt. So did the VC’s enthusiasm for Bitcoin-based business models.

In 2015, the hype machine commenced humming again. The fresh hype revolves around the idea that Bitcoin may not be viable as a currency, but the blockchain, the distributed ledger technology that records bitcoin transactions would have a formidable potential on its own. As research reported on by Coindesk shows:

“On the question of whether “the blockchain can thrive without bitcoin”, 73% of the fifty five respondents asked this question said they believe it can.”

The desire is that of an open self-administered transaction network in which numerous processors are coerced to collaborate and validate transactions –eliminating any risk of dual spend or reversal- without central supervision. Such a system could be used to manage any type of asset transaction or contract history in a decentralized style, without a central authority. It could apply to stock trading, property title registry, voting, crowdfunding…

7 Myths Debunked & seven Reasons to be Skeptical

As stated above the idea of blockchain has a good appeal and seems worth investigating. However, there are major reasons to be skeptical.

One suspicion would be that a blockchain-based system, if at all workable, would be a downgraded version of the Bitcoin’s blockchain and, as such, would require as many safeguards and controls as current regulated systems.

I’ve singled out seven myths about blockchain and bitcoin, the debunking of which should inform a healthy skepticism.

Myth Number one : Blockchain as a decentralized ledger can be split from bitcoin in the Bitcoin system

Most people who say this argue something along the lines that bitcoin failed as a currency but the blockchain worked. From there, they leap to the conclusion that the blockchain in isolation of the bitcoin could build a decentralized transaction system. This is fairly as absurd as telling that we could get water from oxygen alone because we can isolate oxygen from hydrogen in H20.

In reality what makes Bitcoin’s blockchain strongly decentralized is the specific bitcoin encryption algorithm and bitcoin network protocol which determine the way bitcoin processors (“miners”) challenge to verify and validate (“hash”) bitcoin transactions.

There are other distributed ledger systems than Bitcoin’s, such a Ripple Lab’s and Ethereum’s. Ethereum develops its own “blockchain”, but the Bitcoin blockchain is, to this day, the only one that is truly decentralized without the need for consensus or supervision.

Myth Number Two: Bitcoin is a currency used by 10’s of 1,000’s of legal merchants.

One heard this two years ago when it was even less true than today. I reminisce a presentation by a Bitcoin vendor showcasing beautiful pictures of Afghan weavers who allegedly were using bitcoin to sell their carpets worldwide! Magic carpets, for sure.

Bitcoin as a currency was and is very likely still used to over 80% for speculative hoarding.

The legal merchants listed as “accepting bitcoins” don’t. At best, they permit you to spend your bitcoins at a partnering facility which converts them into dollars – exchange costs and risks are on you.

Merchants commenced to “accept bitcoin” just to check how it works, to look cool, or to get media exposure.

Myth Number three Bitcoin transactions are processed in real time

In reality, Bitcoin transactions are processed in blocks and it takes more than ten minutes inbetween blocks. The Bitcoin network presently treats less than two transactions per 2nd, against several thousands for Visa. You can check the stats on blockchain.info.

Myth Number four Bitcoin transactions are “nearly free”

In reality, the true cost of Bitcoin processing is not charged to users. It’s invisible to users, and, for the most part, not charged to merchants either –for now. Here is why:

Miners who process transactions are presently making over 99% of their revenue (presently around $1.Three million a day) from generating (“mining”) fresh bitcoins. This will last until the planned twenty one million bitcoins have been mined – which should happen in 2140. It is unclear how the bitcoin transaction cost will evolve after that.

Transaction processing per se is minimally rewarded by the network with a puny amounts of bitcoins that presently represents less than 1% of the miners’ revenue.

But only the total miner prizes can justify the high $ investment and operating costs of mining (see myth Nr six below). Hence, the real cost of transaction should take the total mining cost into account, i.e. $7.64 per transaction, for an average transaction of $824.

When exchange commissions are added, this cost is not negligible.

Myth Number five Bitcoin is more secure than other transaction systems

Bitcoin’s protocol has been very resilient against attacks.

However, like in any transaction system, security breaches have been caused by human failure and fraud. In two thousand fifteen alone:

  • Bitpay lost almost $Two million in a phishing attack.
  • Before that, a Canadian bitcoin exchange was coerced to shut down because its databases had been compromised.
  • Hong Kong-based bitcoin exchange MyCoin disappeared with $387 million in client funds
  • Bitstamp temporarily stopped trading because of one of its operational wallets was compromised.

Myth Number six Bitcoin’s ecosystem is decentralized

Bitcoin Hashrate Distribution Source Blockchain.info Dec Trio, 2015

In fact, bitcoin mining is increasingly concentrated in the mitts of a few mining pools. The four leading ones, including three from China, control almost 75% of the hashing. Large mining farms artificially limit themselves so as not to ruin the illusion of democracy. But smaller miners and mining pools, such as DigitBTC earlier this year, are driven out of business.

The reason for this oligopolistic dominance is that, by design, generating Bitcoins through mining becomes tighter as the number of bitcoins increases. Only larger players can afford the higher capital investment (specialized hardware) and operating costs (e.g. electro-therapy) that mining requires. Bitcoin is de facto managed by a handful of fairly opaque players who would, if they desired to, have the 51% majority that would enable them to modify transaction rules.

Note that the wallet market is also very concentrated with Coinbase and Blockchain.info the largest operators claiming together more than 50% market share.

Myth Number seven Bitcoin is idealistic and non-profit

In reality, billions of dollars of investments are railing on Bitcoin. Firstly, there is a cumulated $Five billion worth of bitcoin currency. Secondly, there are billions of dollars invested in mining, exchanges and wallet operators.

  • Coinbase raised more than $100 million.
  • Goldman Sachs invested $50 million in a bitcoin commence up call Circle.
  • Another bitcoin startup hardly out of stealth mode, twenty one Inc, raised $116 million from the best VCs in Silicon Valley.

Even if only to rescue their Bitcoin investment, most investors want their Bitcoin business to “pivot” to blockchain.

In conclusion

Bitcoin is undoubtedly a brilliant, extreme invention and presently has the only truly decentralized ledger technology, i.e. blockchain. But what makes it so strong seems to make it also impractical. When reality hits, the Bitcoin network emerges less efficient, more lightly centrally managed and more opaque than many regulated transaction and payment systems.

Whether another version of the blockchain or decentralized ledger could do better without adding layers of consensus or regulation that would put them of a par with challenging technologies remains to be seen.

It’s not going to be effortless – they’ve already attempted for fairly some time.

Therese Torris is an entrepreneur and consultant in eFinance and eCommerce based in Paris. She has covered crowdfunding and P2P lending since the early days when Zopa was created in the United Kingdom. She was a director of research and consulting at Gartner Group Europe, Senior VP at Forrester Research and Content VP at Twenga. She publishes a French individual finance blog, Le Blog Finance Pratique

(Editors Note: a version of this article previously ran on Come back on Clicks)

You may also like.

I feel fairly comforted by the fact that a month after the above articles, several experts like Mike Hearn are now speaking up and telling that “the Bitcoin experiment has failed”. I quote : “Why has Bitcoin failed? It has failed because the community has failed. What was meant to be a fresh, decentralised form of money that lacked “systemically significant institutions” and “too big to fail” has become something even worse: a system entirely managed by just a handful of people. Worse still, the network is on the brink of technical collapse. The mechanisms that should have prevented this outcome have cracked down, and as a result there’s no longer much reason to think Bitcoin can actually be better than the existing financial system….” it goes on to make the same criticisms as in my article.

Here’s an interesting article I wrote on A fresh Blockchain startup out of Poland that you might find interesting.

Blockchain is a potential gamechanger. And everyone seems to now be hopping on the bandwagon. But it emerges that Poland is ahead and already switching the game now ― with the world’s very first blockchain-enabled, bank-backed transactions that are compliant with regulators which permit for bankless banking. Billon.

The Genesis Block — The Chain Embarks in Warsaw — A Blockchain Tale

The thing that the “blockchain without Bitcoin” crowd miss is that there is presently over $1.Five million being spent daily to secure the Bitcoin blockchain. There is a resource available with $1.Five million spent daily to secure it. Just use the Bitcoin blockchain. If you think you need to come up with an alternative blockchain to do what you need to do, you’re not thinking hard enough.

You should indeed have eliminated Blockchain from this topic as you strike up Bitcoin for most of the part.

Can blockchain technology work without or alongside Bitcoin?

Depends on who you ask and what skin they have in the game I find. The Bitcoin community is presently a tad bit pissed off that Blockchain is getting limelight (front cover of Economist etc.) and Bitcoin is getting kicked to the curb by large institutions who want the ledger technology via Blockchain sans the Bitcoin of the Dark Web. And that group will argue that Blockchain needs Bitcoin. However, others who are developing fresh math and algorithms around Blockchain are likely to tell you that they don’t necessarily need Bitcoin to build a decentralised ledger or Blockchain.

Sidechains, Proof of Stake… we are just beginning to unlock what the potential of Blockchain is and what can be done. Nasdaq, Visa, over thirty banks in R3 now. They are not looking at mythology here. If you want proof that Blockchain is not a myth spend some time on my site, Blockchain News at http://www.the-blockchain.com – there’s slew of solid evidence there.

Actually I believe that Blockchain technology can revolutionise Crowdfinancing (equity crowdfunding, P2P, convertible lending/investing) and have written a thesis on it at http://www.chaincrowd.com – likely using Ethereum.

Richard Kastelein – Blockchain News.

HI Richard. The article is certainly about the hype around Bitcoin’s blockchain, based on proof of work, not about Ethereum’s. It hope it comes through that I find Bitcoin a brilliant invention and the blockchain/decentralized ledger concept a revolutionary one certainly worth pursuing. Just arguing it’s all but effortless to make it work: http://www.coindesk.com/blockchain-decade-away-mainstream/.

It’s far from effortless. It’s truly truly sophisticated and there’s a lot of uncertainties. There’s part of it I want to work – but it also scares me a bit. Combine AI, robotics and Blockchain technology (DAPPs, DACs, DAOs et al.) running our future and humans won’t have much to do. Or maybe that will free us up to figure out why we are here and entertain each other with things that robots and AI can’t do. Blockchain experts are now talking about it’s potential use in Internet of Things – or Machine to Machine…. where all these sensors and computational devices will one day make deals and contracts with each other, without human input at all.

Indeed. This is one of those areas of research that raise many philosophical questions. Technology has given us, human beeings, the illusion of being able to control the world around us. Is it about to take it away?

Transaction time is in seconds. Confirmation time is ten minutes. You are ensured no chargebacks after sixty minutes.

VISA takes six months to assure no chargebacks.

“Seconds” is slow. Irreversible transactions of course have a different timefrom from reversible transactions, but the latter are considered a service, and sometimes required by law.

A debunking myth list that is utter of myths.

Myth 1: The idea that Bitcoin has failed as a currency (not sure if that is your position) however I would suggest that Bitcoin is still early stage as a currency… Not failed. The UK recognized Bitcoin as a currency in October. I would suggest that Bitcoin is a store of wealth (tho’ speculatively at this point) but a store of wealth none the less. The Chinese it is reported are one of the larger drivers of Bitcoin as a way to budge money from Renminbi into a more portable currency that can be moved around the world. They can’t buy US dollars directly (if that was their intent) but they can buy Bitcoin. There is still a man in the middle challenge in China however assuming creativity to movement of monies from Yuan to Dollars is accomplished more lightly via Bitcoin…

Myth Two: 80% speculative hoarding… Seems a bit brief sighted. Bitcoin is very likely more distributed then ever before… When Bitcoin dropped from $1200 – $200 over the better part of two years was that speculative hoarding? The only reason one would use the term hoarding is because it makes them jumpy…

Myth Three: ten minutes to confirm into a block is not a lot of time. There is relatively instant confirmation that Bitcoin has been sent and received and then there is the very first confirmation. If you are buying a latte not a big deal. No need to wait ten minutes. Most likely don’t need to wait on a $100 purchase either… Now a $Ten,000 purchase using Bitcoin is a much different matter and waiting ten or twenty minutes to confirm the transaction is just clever no matter what medium of exchange you are using. $100,000 maybe five confirm (under an hour). $1,000,000 maybe eight confirms (90 minutes)… Attempt to do that with any other form of currency… Not going to happen… So your confirmation issue is hollow at a minimum and misinformed or more likely misleading (I suspect)…

Myth Four: Bitcoin transactions are almost free. Okay this one is just totally out there. Very first most of the mining that is going on is by hobbiests running mining machines on dedicated machines. These machines are no longer in place to make money even tho’ there are some who most likely want to make money. Distributed currency and distributed ledgers do have an inherent cost associated with them but they are not a physical expense cost. It is a social investment. By running Bitcoin mining software on dedicated hardware it is not so one makes BTC however that was the case three – four years ago. Since then almost all miners know that they will never recover the cost of their hardware and the benefits of mining is less then the cost of electro-stimulation needed to run their own computer. That being said these same individual in all likelihood are the same hoarders you talked about in Myth two who are holding on to much of their Bitcoin and know that part of the value of their BTC is tied to being part of the larger network. In two thousand thirty when the last Bitcoin is mined do you think all of these individuals are going to request that they get paid a high amount of BTC. Not at all… Will they turn their computers off. Some will while others recognizing the value of the network will buy a machine to run in the background at their home to be part of the network and to support the network… Will they request 1% of every transaction… I gravely doubt it. .0001% of the transaction will most likely be the norm and even then the value won’t be in receiving the transaction fees which there will be many but the value will be in being part of the network.

Myth Five: Bitcoin is more secure. The only time it isn’t secure is when there is a man in the middle period… The US Government this week is negotiating an extra $1.Five Trillion of borrowing that can never been paid back in addition to the $Eighteen Trillion of National Debt not to mention the $100 Trillion of unfunded debt/entitlements on the books… Talk about a less secure currency. All that debt is based on the dollar… What happens to the dollar relative to Bitcoin when that house of cards come crashing down? Are you suggesting that the dollar is more secure? I would suggest it is less secure and more prone to theft then any Bitcoin you have in your private wallet on the Blockchain… Maybe I’m wrong but there are a lot of very bright people who are investing in Bitcoin as a place to store wealth in the face of an emerging dollar collapse that (tho’ years off) is coming…

Myth 6: Bitcoin ecosystem is decentralized… I don’t disagree with your premise here however it misses one very significant point… All the players in Bitcoin need Bitcoin to be a legitimate trusted currency. To operate in ones best interest one needs to proceed to encourage and potentially insist on decentralization. This is a brief term anomaly of Bitcoin that will work its way out over time…

Myth 7: Bitcoin is idealistic and non-profit… Maybe… Bitcoin is more like the early stages of the Internet where millions of dollars will invested in the 90’s into tons of Internet start-ups hoping to capture a significant marketshare in what was to come in the future… We didn’t know what the future looked like at that time and so anyone with an idea was getting funding and most of those ideas and fundings collapsed in two thousand but did the Internet go away? Nope… It kept on growing in the background. I reminisce in the 90’s when Bill Gates thought that the internet was a fad… It took him almost two years until he realized that it wasn’t and he and Microsoft commenced their pivot back then. There are tons of people (and based on your article) you included that put Bitcoin in the fad category and unluckily you and those who trust you as an advisor are going to miss out on what will likely be the largest switch in what we think of as currency the world has ever known. Bitcoin has the potential to be fatter and more profitable then the internet was for most people. Why? Because at this point in time virtually everyone of your readers can open up a Coinbase account and in brief order buy themselves one Bitcoin. That’s all… Just one BTC. Just imagine if every millionaire on the planet wished to buy one BTC… That’s it… Just one BTC what would the value of Bitcoin be? If they all bought two all the Bitcoin that is or would ever be mined would be possessed by these millionaires… Imagine further if the children, the millennials and others desired to own a bit of Bitcoin what would the value of Bitcoin be… What if these millionaires trusted Bitcoin more then they trusted their local currencies… Where does Bitcoin go then… Bottom line is we are at what will be for us the lowest prices we will see Bitcoin in our lifetime… Bitcoin is a store of wealth with potentials in the next ten years to be part of the ecommerce arena. Previously the way to store wealth that wasn’t currency related was with Gold… But who can spend gold on the internet? No one… Who can spend bitcoin on the internet? Everyone!

Myth #Four has the statement “This will last until the planned twenty one million bitcoins have been mined”. Fees are needed to support mining well before all twenty one million bitcoins have been mined. Fees could become significant income for miners sooner rather than later as the blocks begin packing.

The very first myth is correctly analyzed. Blockchain alone won’t work. Thanks for that.

However, the statement, that Bitcoin is slow, is certainly false. Even however a transaction might take ten minutes or more, this is several orders swifter, than making a bank transfer, which might take several days.

The comparison of Bitcoin with Visa is like comparing apples and pear gags. During a Visa-transaction, no money flows from the buyer to the seller. Instead, Visa grants the buyer the corresponding credit and pays for the buyer. At the end of the month, money goes from the buyer to Visa, if there is any. As a result, only people how are credit-worthy can use credit-cards.

In contrast, only those Bitcoins can be spend, which a person wields, like in a bank transfer (tho’ the bank might not hold enough cash as it possesses as numbers in its databases). And, compared to a bank transfer, Bitcoin is virtually instantaneous.

Innovative banks and startups like Dwolla are working on real-time bank transfers, see for example https://www.dwolla.com/FiSync

Oh dear. I shall have to attempt and be polite.

This mythbuster should be taken about as earnestly as the Ghostbuster film – it’s about as utter of hilarity and green slime being a combination of false myths to debunk, half truths and misleading click-bait.

I’m afraid the author exposes ignorance of the tech (and has clearly never heard of proof-of-stake for example).

The H2O example holds no water and the rest are hardly less misleading.

8/Ten for Clickbait. 1/Ten for elucidation accuracy.

HI Barry, thanks for making the effort of staying polite ;-). I am aware of proof of work and proof of stake and of the good work by companies like Ethereum to attempt to make decentralized ledgers/blockchain work.

The article is about Blockchain in the current bitcoin system and I admit it is very provocative as I agree with you there is a lot of uninformed writing about the topic. I look forward to reading your wisdom on this topic.

You are welcome. Glad you are aware of those things. Amazed you did not mention how they bear on and wait in the wings to solve these mythical problems should they actually materialise.

Provocative is one thing. Misleading is another. I wont be responding to your points directly as I think your entire framework and premise is too misleading and will tend to confuse rather than elucidate.

Since you’ve expressly missed my, fairly extensive, writings on this topic here’s a starter – from this very publication (and Google can help you find a growing assets of them across various others).

Busting seven Blockchain – Bitcoin Myths, Crowdfund Insider

Busting seven Blockchain & Bitcoin Myths

December 13, two thousand fifteen @ Five:56 pm By Therese Torris

Is there more to the current blockchain hype than there was to the Bitcoin hype of the past? Seven myths debunked. Seven reasons to be skeptical.

Two years ago, Bitcoin was at the peak of its hype cycle. The digital currency’s value skyrocketed. Enlargening tenfold in four months, it passed the $1,200 mark, the price of an ounce of gold at the time.

Then, after a duo of security breaches and scandals such as the collapse of the largest exchange Mt. Gox in 2014, Bitcoin’s value fell down to $200. The speculation madness came to a halt. So did the VC’s enthusiasm for Bitcoin-based business models.

In 2015, the hype machine commenced humming again. The fresh hype revolves around the idea that Bitcoin may not be viable as a currency, but the blockchain, the distributed ledger technology that records bitcoin transactions would have a formidable potential on its own. As research reported on by Coindesk shows:

“On the question of whether “the blockchain can thrive without bitcoin”, 73% of the fifty five respondents asked this question said they believe it can.”

The desire is that of an open self-administered transaction network in which numerous processors are compelled to collaborate and validate transactions –eliminating any risk of dual spend or reversal- without central supervision. Such a system could be used to manage any type of asset transaction or contract history in a decentralized style, without a central authority. It could apply to stock trading, property title registry, voting, crowdfunding…

7 Myths Debunked & seven Reasons to be Skeptical

As stated above the idea of blockchain has a excellent appeal and seems worth investigating. However, there are major reasons to be skeptical.

One suspicion would be that a blockchain-based system, if at all workable, would be a downgraded version of the Bitcoin’s blockchain and, as such, would require as many safeguards and controls as current regulated systems.

I’ve singled out seven myths about blockchain and bitcoin, the debunking of which should inform a healthy skepticism.

Myth Number one : Blockchain as a decentralized ledger can be split from bitcoin in the Bitcoin system

Most people who say this argue something along the lines that bitcoin failed as a currency but the blockchain worked. From there, they hop to the conclusion that the blockchain in isolation of the bitcoin could build a decentralized transaction system. This is fairly as absurd as telling that we could get water from oxygen alone because we can isolate oxygen from hydrogen in H20.

In reality what makes Bitcoin’s blockchain strongly decentralized is the specific bitcoin encryption algorithm and bitcoin network protocol which determine the way bitcoin processors (“miners”) challenge to verify and validate (“hash”) bitcoin transactions.

There are other distributed ledger systems than Bitcoin’s, such a Ripple Lab’s and Ethereum’s. Ethereum develops its own “blockchain”, but the Bitcoin blockchain is, to this day, the only one that is truly decentralized without the need for consensus or supervision.

Myth Number Two: Bitcoin is a currency used by 10’s of 1,000’s of legal merchants.

One heard this two years ago when it was even less true than today. I recall a presentation by a Bitcoin vendor demonstrating beautiful pictures of Afghan weavers who allegedly were using bitcoin to sell their carpets worldwide! Magic carpets, for sure.

Bitcoin as a currency was and is very likely still used to over 80% for speculative hoarding.

The legal merchants listed as “accepting bitcoins” don’t. At best, they permit you to spend your bitcoins at a partnering facility which converts them into dollars – exchange costs and risks are on you.

Merchants commenced to “accept bitcoin” just to check how it works, to look cool, or to get media exposure.

Myth Number three Bitcoin transactions are processed in real time

In reality, Bitcoin transactions are processed in blocks and it takes more than ten minutes inbetween blocks. The Bitcoin network presently treats less than two transactions per 2nd, against several thousands for Visa. You can check the stats on blockchain.info.

Myth Number four Bitcoin transactions are “nearly free”

In reality, the true cost of Bitcoin processing is not charged to users. It’s invisible to users, and, for the most part, not charged to merchants either –for now. Here is why:

Miners who process transactions are presently making over 99% of their revenue (presently around $1.Three million a day) from generating (“mining”) fresh bitcoins. This will last until the planned twenty one million bitcoins have been mined – which should happen in 2140. It is unclear how the bitcoin transaction cost will evolve after that.

Transaction processing per se is minimally rewarded by the network with a petite amounts of bitcoins that presently represents less than 1% of the miners’ revenue.

But only the total miner prizes can justify the high $ investment and operating costs of mining (see myth Nr six below). Hence, the real cost of transaction should take the total mining cost into account, i.e. $7.64 per transaction, for an average transaction of $824.

When exchange commissions are added, this cost is not negligible.

Myth Number five Bitcoin is more secure than other transaction systems

Bitcoin’s protocol has been very resilient against attacks.

However, like in any transaction system, security breaches have been caused by human failure and fraud. In two thousand fifteen alone:

  • Bitpay lost almost $Two million in a phishing attack.
  • Before that, a Canadian bitcoin exchange was coerced to shut down because its databases had been compromised.
  • Hong Kong-based bitcoin exchange MyCoin disappeared with $387 million in client funds
  • Bitstamp temporarily stopped trading because of one of its operational wallets was compromised.

Myth Number six Bitcoin’s ecosystem is decentralized

Bitcoin Hashrate Distribution Source Blockchain.info Dec Trio, 2015

In fact, bitcoin mining is increasingly concentrated in the forearms of a few mining pools. The four leading ones, including three from China, control almost 75% of the hashing. Large mining farms artificially limit themselves so as not to ruin the illusion of democracy. But smaller miners and mining pools, such as DigitBTC earlier this year, are driven out of business.

The reason for this oligopolistic dominance is that, by design, generating Bitcoins through mining becomes firmer as the number of bitcoins increases. Only larger players can afford the higher capital investment (specialized hardware) and operating costs (e.g. electro-therapy) that mining requires. Bitcoin is de facto managed by a handful of fairly opaque players who would, if they dreamed to, have the 51% majority that would enable them to modify transaction rules.

Note that the wallet market is also very concentrated with Coinbase and Blockchain.info the largest operators claiming together more than 50% market share.

Myth Number seven Bitcoin is idealistic and non-profit

In reality, billions of dollars of investments are railing on Bitcoin. Firstly, there is a cumulated $Five billion worth of bitcoin currency. Secondly, there are billions of dollars invested in mining, exchanges and wallet operators.

  • Coinbase raised more than $100 million.
  • Goldman Sachs invested $50 million in a bitcoin begin up call Circle.
  • Another bitcoin startup hardly out of stealth mode, twenty one Inc, raised $116 million from the best VCs in Silicon Valley.

Even if only to rescue their Bitcoin investment, most investors want their Bitcoin business to “pivot” to blockchain.

In conclusion

Bitcoin is undoubtedly a brilliant, extreme invention and presently has the only truly decentralized ledger technology, i.e. blockchain. But what makes it so strong seems to make it also impractical. When reality hits, the Bitcoin network shows up less efficient, more lightly centrally managed and more opaque than many regulated transaction and payment systems.

Whether another version of the blockchain or decentralized ledger could do better without adding layers of consensus or regulation that would put them of a par with rivaling technologies remains to be seen.

It’s not going to be effortless – they’ve already attempted for fairly some time.

Therese Torris is an entrepreneur and consultant in eFinance and eCommerce based in Paris. She has covered crowdfunding and P2P lending since the early days when Zopa was created in the United Kingdom. She was a director of research and consulting at Gartner Group Europe, Senior VP at Forrester Research and Content VP at Twenga. She publishes a French individual finance blog, Le Blog Finance Pratique

(Editors Note: a version of this article previously ran on Come back on Clicks)

You may also like.

I feel fairly comforted by the fact that a month after the above articles, several experts like Mike Hearn are now speaking up and telling that “the Bitcoin experiment has failed”. I quote : “Why has Bitcoin failed? It has failed because the community has failed. What was meant to be a fresh, decentralised form of money that lacked “systemically significant institutions” and “too big to fail” has become something even worse: a system entirely managed by just a handful of people. Worse still, the network is on the brink of technical collapse. The mechanisms that should have prevented this outcome have violated down, and as a result there’s no longer much reason to think Bitcoin can actually be better than the existing financial system….” it goes on to make the same criticisms as in my article.

Here’s an interesting article I wrote on A fresh Blockchain startup out of Poland that you might find interesting.

Blockchain is a potential gamechanger. And everyone seems to now be leaping on the bandwagon. But it emerges that Poland is ahead and already switching the game now ― with the world’s very first blockchain-enabled, bank-backed transactions that are compliant with regulators which permit for bankless banking. Billon.

The Genesis Block — The Chain Commences in Warsaw — A Blockchain Tale

The thing that the “blockchain without Bitcoin” crowd miss is that there is presently over $1.Five million being spent daily to secure the Bitcoin blockchain. There is a resource available with $1.Five million spent daily to secure it. Just use the Bitcoin blockchain. If you think you need to come up with an alternative blockchain to do what you need to do, you’re not thinking hard enough.

You should indeed have eliminated Blockchain from this topic as you hammer up Bitcoin for most of the part.

Can blockchain technology work without or alongside Bitcoin?

Depends on who you ask and what skin they have in the game I find. The Bitcoin community is presently a tad bit pissed off that Blockchain is getting limelight (front cover of Economist etc.) and Bitcoin is getting kicked to the curb by large institutions who want the ledger technology via Blockchain sans the Bitcoin of the Dark Web. And that group will argue that Blockchain needs Bitcoin. However, others who are developing fresh math and algorithms around Blockchain are likely to tell you that they don’t necessarily need Bitcoin to build a decentralised ledger or Blockchain.

Sidechains, Proof of Stake… we are just beginning to unlock what the potential of Blockchain is and what can be done. Nasdaq, Visa, over thirty banks in R3 now. They are not looking at mythology here. If you want proof that Blockchain is not a myth spend some time on my site, Blockchain News at http://www.the-blockchain.com – there’s slew of solid evidence there.

Actually I believe that Blockchain technology can revolutionise Crowdfinancing (equity crowdfunding, P2P, convertible lending/investing) and have written a thesis on it at http://www.chaincrowd.com – likely using Ethereum.

Richard Kastelein – Blockchain News.

HI Richard. The article is undoubtedly about the hype around Bitcoin’s blockchain, based on proof of work, not about Ethereum’s. It hope it comes through that I find Bitcoin a brilliant invention and the blockchain/decentralized ledger concept a revolutionary one certainly worth pursuing. Just arguing it’s all but effortless to make it work: http://www.coindesk.com/blockchain-decade-away-mainstream/.

It’s far from effortless. It’s truly indeed sophisticated and there’s a lot of uncertainties. There’s part of it I want to work – but it also scares me a bit. Combine AI, robotics and Blockchain technology (DAPPs, DACs, DAOs et al.) running our future and humans won’t have much to do. Or maybe that will free us up to figure out why we are here and entertain each other with things that robots and AI can’t do. Blockchain experts are now talking about it’s potential use in Internet of Things – or Machine to Machine…. where all these sensors and computational devices will one day make deals and contracts with each other, without human input at all.

Indeed. This is one of those areas of research that raise many philosophical questions. Technology has given us, human beeings, the illusion of being able to control the world around us. Is it about to take it away?

Transaction time is in seconds. Confirmation time is ten minutes. You are ensured no chargebacks after sixty minutes.

VISA takes six months to assure no chargebacks.

“Seconds” is slow. Irreversible transactions of course have a different timefrom from reversible transactions, but the latter are considered a service, and sometimes required by law.

A debunking myth list that is total of myths.

Myth 1: The idea that Bitcoin has failed as a currency (not sure if that is your position) however I would suggest that Bitcoin is still early stage as a currency… Not failed. The UK recognized Bitcoin as a currency in October. I would suggest that Bitcoin is a store of wealth (however speculatively at this point) but a store of wealth none the less. The Chinese it is reported are one of the larger drivers of Bitcoin as a way to budge money from Renminbi into a more portable currency that can be moved around the world. They can’t buy US dollars directly (if that was their intent) but they can buy Bitcoin. There is still a man in the middle challenge in China however assuming creativity to movement of monies from Yuan to Dollars is accomplished more lightly via Bitcoin…

Myth Two: 80% speculative hoarding… Seems a bit brief sighted. Bitcoin is very likely more distributed then ever before… When Bitcoin dropped from $1200 – $200 over the better part of two years was that speculative hoarding? The only reason one would use the term hoarding is because it makes them jumpy…

Myth Three: ten minutes to confirm into a block is not a lot of time. There is relatively instant confirmation that Bitcoin has been sent and received and then there is the very first confirmation. If you are buying a latte not a big deal. No need to wait ten minutes. Very likely don’t need to wait on a $100 purchase either… Now a $Ten,000 purchase using Bitcoin is a much different matter and waiting ten or twenty minutes to confirm the transaction is just wise no matter what medium of exchange you are using. $100,000 maybe five confirm (under an hour). $1,000,000 maybe eight confirms (90 minutes)… Attempt to do that with any other form of currency… Not going to happen… So your confirmation issue is hollow at a minimum and misinformed or more likely misleading (I suspect)…

Myth Four: Bitcoin transactions are almost free. Okay this one is just totally out there. Very first most of the mining that is going on is by hobbiests running mining machines on dedicated machines. These machines are no longer in place to make money even however there are some who very likely want to make money. Distributed currency and distributed ledgers do have an inherent cost associated with them but they are not a physical expense cost. It is a social investment. By running Bitcoin mining software on dedicated hardware it is not so one makes BTC tho’ that was the case three – four years ago. Since then almost all miners know that they will never recover the cost of their hardware and the benefits of mining is less then the cost of violet wand needed to run their own computer. That being said these same individual in all likelihood are the same hoarders you talked about in Myth two who are holding on to much of their Bitcoin and know that part of the value of their BTC is tied to being part of the larger network. In two thousand thirty when the last Bitcoin is mined do you think all of these individuals are going to request that they get paid a high amount of BTC. Not at all… Will they turn their computers off. Some will while others recognizing the value of the network will buy a machine to run in the background at their home to be part of the network and to support the network… Will they request 1% of every transaction… I gravely doubt it. .0001% of the transaction will most likely be the norm and even then the value won’t be in receiving the transaction fees which there will be many but the value will be in being part of the network.

Myth Five: Bitcoin is more secure. The only time it isn’t secure is when there is a man in the middle period… The US Government this week is negotiating an extra $1.Five Trillion of borrowing that can never been paid back in addition to the $Legitimate Trillion of National Debt not to mention the $100 Trillion of unfunded debt/entitlements on the books… Talk about a less secure currency. All that debt is based on the dollar… What happens to the dollar relative to Bitcoin when that house of cards come crashing down? Are you suggesting that the dollar is more secure? I would suggest it is less secure and more prone to theft then any Bitcoin you have in your individual wallet on the Blockchain… Maybe I’m wrong but there are a lot of very bright people who are investing in Bitcoin as a place to store wealth in the face of an forthcoming dollar collapse that (tho’ years off) is coming…

Myth 6: Bitcoin ecosystem is decentralized… I don’t disagree with your premise here however it misses one very significant point… All the players in Bitcoin need Bitcoin to be a legitimate trusted currency. To operate in ones best interest one needs to proceed to encourage and potentially insist on decentralization. This is a brief term anomaly of Bitcoin that will work its way out over time…

Myth 7: Bitcoin is idealistic and non-profit… Maybe… Bitcoin is more like the early stages of the Internet where millions of dollars will invested in the 90’s into tons of Internet start-ups hoping to capture a significant marketshare in what was to come in the future… We didn’t know what the future looked like at that time and so anyone with an idea was getting funding and most of those ideas and fundings collapsed in two thousand but did the Internet go away? Nope… It kept on growing in the background. I recall in the 90’s when Bill Gates thought that the internet was a fad… It took him almost two years until he realized that it wasn’t and he and Microsoft embarked their pivot back then. There are tons of people (and based on your article) you included that put Bitcoin in the fad category and unluckily you and those who trust you as an advisor are going to miss out on what will likely be the largest switch in what we think of as currency the world has ever known. Bitcoin has the potential to be fatter and more profitable then the internet was for most people. Why? Because at this point in time virtually everyone of your readers can open up a Coinbase account and in brief order buy themselves one Bitcoin. That’s all… Just one BTC. Just imagine if every millionaire on the planet dreamed to buy one BTC… That’s it… Just one BTC what would the value of Bitcoin be? If they all bought two all the Bitcoin that is or would ever be mined would be possessed by these millionaires… Imagine further if the children, the millennials and others wished to own a bit of Bitcoin what would the value of Bitcoin be… What if these millionaires trusted Bitcoin more then they trusted their local currencies… Where does Bitcoin go then… Bottom line is we are at what will be for us the lowest prices we will see Bitcoin in our lifetime… Bitcoin is a store of wealth with potentials in the next ten years to be part of the ecommerce arena. Previously the way to store wealth that wasn’t currency related was with Gold… But who can spend gold on the internet? No one… Who can spend bitcoin on the internet? Everyone!

Myth #Four has the statement “This will last until the planned twenty one million bitcoins have been mined”. Fees are needed to support mining well before all twenty one million bitcoins have been mined. Fees could become significant income for miners sooner rather than later as the blocks begin packing.

The very first myth is correctly analyzed. Blockchain alone won’t work. Thanks for that.

However, the statement, that Bitcoin is slow, is certainly false. Even however a transaction might take ten minutes or more, this is several orders quicker, than making a bank transfer, which might take several days.

The comparison of Bitcoin with Visa is like comparing apples and pear gags. During a Visa-transaction, no money flows from the buyer to the seller. Instead, Visa grants the buyer the corresponding credit and pays for the buyer. At the end of the month, money goes from the buyer to Visa, if there is any. As a result, only people how are credit-worthy can use credit-cards.

In contrast, only those Bitcoins can be spend, which a person possesses, like in a bank transfer (however the bank might not hold enough cash as it possesses as numbers in its databases). And, compared to a bank transfer, Bitcoin is virtually instantaneous.

Innovative banks and startups like Dwolla are working on real-time bank transfers, see for example https://www.dwolla.com/FiSync

Oh dear. I shall have to attempt and be polite.

This mythbuster should be taken about as earnestly as the Ghostbuster film – it’s about as total of hilarity and green slime being a combination of false myths to debunk, half truths and misleading click-bait.

I’m afraid the author exposes ignorance of the tech (and has clearly never heard of proof-of-stake for example).

The H2O example holds no water and the rest are hardly less misleading.

8/Ten for Clickbait. 1/Ten for elucidation accuracy.

HI Barry, thanks for making the effort of staying polite ;-). I am aware of proof of work and proof of stake and of the good work by companies like Ethereum to attempt to make decentralized ledgers/blockchain work.

The article is about Blockchain in the current bitcoin system and I admit it is very provocative as I agree with you there is a lot of uninformed writing about the topic. I look forward to reading your wisdom on this topic.

You are welcome. Glad you are aware of those things. Amazed you did not mention how they bear on and wait in the wings to solve these mythical problems should they actually materialise.

Provocative is one thing. Misleading is another. I wont be responding to your points directly as I think your entire framework and premise is too misleading and will tend to confuse rather than elucidate.

Since you’ve expressly missed my, fairly extensive, writings on this topic here’s a starter – from this very publication (and Google can help you find a growing figure of them across various others).

Related video:

Blockchain, simply explained

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Blockchain is a secured and reliable technology, operating on a peer-to-peer basis (i.e. with connected computer systems), which is used to confidently stock and share data or list transactions. It enables to perform transactions in a relatively swift and cost-effective manner. It is a distributed, see-through (but pseudo-anonymous) cryptographic ledger, deemed unforgeable, that keeps records of all transactions, without involvement of a central intermediary, each transaction being verified by the network participants.

When verified, the transaction is added to a block of other verified transactions. The block is then immutably added to the distributed ledger in a linear and chronological order. This is where the term “chain” comes from. The chain may be public (e.g. bitcoin blockchain) or private (i.e. access limited to members of a private network).

Said transactions may concern cryptocurrencies (e.g. bitcoin) or any other kind of digital assets or digital representations of a physical asset, so-called “tokens”.

While traditional ledgers are centralised, meaning that the ledger holder (the central intermediary) controls the system and mediates every transaction, with the blockchain technology, each network participant holds a copy of the ledger and participates to the approval of the transactions. Consequently, while corrupting a “traditional” ledger implies getting to the central ledger holder (the centralised intermediary), corrupting a blockchain would imply attacking all copies of the ledger at the same time because of the distributed nature of the ledger. The fattest “added” value of the blockchain technology may well refer to trust. Rather than helping you building trust, blockchain technology makes trust irrelevant.

How does a blockchain basically work?

Fresh transactions (e.g. A would like to send ten bitcoins to B) are grouped within blocks. Each block is verified and validated by the “knots” (network participants) or so-called “miners” using elaborate cryptotechnics which will depend on the type of blockchain (in our bitcoin transaction example: the miners will verify that A is indeed proprietor of ten bitcoins and once this is confirmed, the transaction is validated and visible for B and the other network participants; B thus becomes the holder of said ten bitcoins). Blockchain security methods use encryption technology.

Network participants are incentivised to perform the verification and approval tasks, mostly by receiving fees or fresh cryptocurrencies. If a discrepancy is found, the block is rejected. Otherwise validated transactions (in the block) are time-stamped and added to the chain, in a linear and chronological order, making a chain of transactions (or a chain of blocks) that shows every and all transactions in the history of that blockchain.

What are possible uses of a blockchain?

Originally, the blockchain technology has been used for cryptocurrency transactions. The potential of the blockchain technology goes, however, far beyond cryptocurrencies. This technology may basically be used for any types of transaction involving value (money, goods, real estate, etc.) or for unforgeable databases or registers. Blockchain technology may be applied to any transaction or operation where traceability and visibility is required (e.g. casting votes in election, proving that a document existed at a certain time or that a person is the legitimate possessor of an asset, proving origin of a product within a supply chain, etc.).

It may also be used for contracts that will be automatically executed, without human intervention (so-called “smart contracts”). Not fully clear what that is? Go after us on our Linkedin Page and stay tuned for the next gig: Brainy Contracts simply explained.

Related video:

Blockchain, titillating possibilities and wild west risks, Tiana Laurence Blockchain For Dummies – Irish Tech News

Blockchain, arousing possibilities and wild west risks, Tiana Laurence Blockchain For Dummies

By @SimonCocking superb interview with Tiana Laurence, Co-founder & CMO of Factom and Author of Blockchain For Dummies which we recently reviewed.

What is your background shortly?

I love emerging technology and that love has taken through many projects. My skill set is helping commercialise emerging technology, and part of commercialization is explaining fresh technology to the intended audience.

Does it seem like a logical background to what you do now?

Yes, blockchain is on the cutting edge of several industries and is poised well to switch how we do everything from trade value to secure systems.

1 min pitch for what you are working on now?

Factom is a blockchain platform that secures data and systems. We have developed a fresh product that helps the coordination of data for loans, leases, and insurance systems.

Disrupting the Paradigm for Document Collaboration https://t.co/tp1sQAheqa

For those unacquainted with the work of Factom, tell us a little more?

What the Factom network does is deceptively ordinary. It permits users to permanently record and index data and then read and update it later as needed. It is a powerful instrument when you are coordinating systems that don’t trust one another such as financial transactions or like our work with the Department of Homeland Security (we’re creating solutions to address DHS’s border security challenges) when you want to make sure that your data is authentic and unaltered.

Congratulations on the book, we liked it, was it a labour of love or challenging to write?

It was both; I would not call myself a natural writer. Without the support of my editors, it would never have been finished.

We felt it was a good introduction to the topic in a swift moving area since you wrote it / if you do a 2nd edition, what would you spend more or less time on?

My editor and I have been talking about the 2nd book. It is most likely going to concentrate on the clever contract and ICO space.

Can blockchain create secure worldwide digital IDs? @LaurenceTiana discusses this in latest @iotagenda article: https://t.co/7CoTYC7Qoc pic.twitter.com/ZxO2DzXQ8e

With latest hard forks in some blockchain technologies (and the Ethereum loss of money/value, before it was realised) how much do you think it affects consumer confidence? Are we still in the wild west phase?

We are still in the wild west. The ICO craze is the fresh iteration. Recently a project had seven million stolen from it through a elementary hack of their website and there were not a lot of resources to advise them.

How soon do you think blockchain driven solutions could become widespread and more secure?

The industry is now ending up the very first tests of their ideas and now looking to budge away from prototype to the commercialization of the good ideas. Next year we should embark witnessing them in the actual marketplace.

What resources and thought leaders would you recommend for people to stay up to date with blockchain innovations and fresh initiatives?

Here are a few good resources:

China recently announced it will use blockchain for tax comes back, which parts of the world do you think will budge to blockchain solutions soonest?

Governments that have signalled that they are moving quickly – a few off the top of my head include:

Dubai two thousand twenty – all functions of government that can be done on blockchain will be.

Singapore MAS Regulatory Sandbox – open invitation for blockchain innovation.

Estonia’s e-Estonia – blockchain initiative.

Delaware State Blockchain Initiative – legal standing for the technology.

For those that don’t know, can you shortly explain what an ICO is, and why we are eyeing so much activity in this area at the moment?

ICO stands for Initial Coin Suggesting. What it does is permit a group to raise capital for a project. We are witnessing a lot of these right now for a few reasons. It used to be difficult to do from a technical point of view. Now there are platforms like Ethereum and Wave that let you create an ICO in a few minutes without needing to embark from scrape. Also, tokens like Bitcoin and Ether (the Ethereum token) are are doing fairly well and those that hold large amounts are looking to reinvest in the 2nd generation of blockchain technology.

Is there anything else we should have asked you/you’d like to mention?

I have been asked a lot about what token to buy or what’s the hot fresh ICO. Again, this is the wild west, and fresh people to the industry would be well served to examine the industry and understand the value proposition before getting involved and only risk what they are willing and able to lose.

How can people find out more you and buy the book?

If you would like to have your company featured in the Irish Tech News Business Showcase, get in contact with us at [email protected] or on Twitter: @SimonCocking

Related video:

Blockchain, Bitcoin, and Ethereum ELI5 (Explained Like I – m Five)

Blockchain, Bitcoin, and Ethereum ELI5 (Explained Like I'm Five)

Blockchain is a ledger of transactions that everyone possesses and contributes to.

Bitcoin is a digital currency with a immovable supply built on blockchain technology, and has a few nice features that people like so they give it value.

Ethereum is a platform that lets anyone build “decentralized applications” on top of their blockchain technology, and runs on its own currency called Ether.

Interested in investing? I wrote a guide for buying NEO, one of the most popular up-and-coming cryptocurrencies backed by China, as well as a guide for buying BNB, the cryptocurrency for one of the top crypto exchanges in the world.

It embarked with Bitcoin: the very first mainstream digital currency that exploded into popularity in 2013, when the price of a single Bitcoin (BTC) went from $Ten to over $1000 at its peak. Over the next year, BTC’s constant decline back, losing 75% of its value to $250, was identically as tumultuous.

What is Bitcoin exactly? Read on.

Bitcoin ELI5

Bitcoins are digital coins that only have value if people give it value; this means that if no one would trade you anything for a Bitcoin, then it would be worthless. So why do people give Bitcoin any value? In brief,

Bitcoins are scarce (there will only ever be twenty one million of them). Scarcity means that no central authority, like the US government for US dollars, can create more coins to inflate away your current Bitcoin value. People (called “Miners”) earn Bitcoins by helping verify Bitcoins that are sent have not already been sent elsewhere (via the blockchain), which also means that once we reach the twenty one million limit, sending Bitcoins will cost more Bitcoins (usually a fraction of one) as a fee paid to Miners to keep them working.

Bitcoins are prompt to transact in (sending a coin to someone else takes ten minutes to verify). Prompt transactions means you can send and receive money without going through a third party like a bank. Handing over real cash is obviously swifter, but then you would need to carry cash around and transact in person. If someone sends you a Bitcoin, you can trust that it has not already been sent elsewhere because a Miner will have verified that Bitcoin and told everyone else that the Bitcoin now belongs to you. Everyone knows where any Bitcoins are at any point in time.

Bitcoins are anonymous (no one knows who you are or how many Bitcoins you have). Anonymity means you can do what you want with your Bitcoins without anyone else knowing. Of course, if you tell someone what your wallet ID is, then they can trace all transactions from that wallet back to you. So don’t tell anyone which wallet is yours if you want privacy. You can create as many different wallets as you want.

All of those factors make Bitcoins a currency that people can use for buying and selling things, and possibly for storing wealth.

Buying Bitcoin

Want to buy some yourself? There are tons of ways to get bitcoin, but the easiest way is to use the most established crypto platform in the USA, Coinbase.

Help me help you! Sign up for Coinbase using my referral code (already linked) and we both get $Ten!

On Coinbase, you’ll be able to purchase BTC using conventional fiat methods including PayPal, Bank Account (US), and Credit/Debit Card; each has different buying times and thresholds, generally the longer the buying time the higher the limit.

Now that you know something about Bitcoin, how does the digital currency actually work? Underneath it all is something called Blockchain. Here are some high-level concepts of the underpinning technology without gory technical details.

Blockchain ELI5

Bitcoin is built on top of a technology called a blockchain. Think of a blockchain as a digital ledger of transactions, with a copy stored on every single user’s computer. Every time a fresh transaction takes place, a fresh record is added to the ledger, and an update is beamed out to the rest of the network in a peer-to-peer style. In this way, a blockchain gets decentralization since everyone has a copy of the ledger. No single entity has monopoly over the validity of transactions which also means there is no single point of failure, barring some apocalyptic event. If someone offers me a unit of cash of a currency built on a blockchain, I can simply check the current state of that blockchain’s ledger to see if the unit of cash is valid one and has not already been spent. If it is indeed valid, then I accept the transaction, add a fresh record to my ledger, and send an update of the fresh state to the other knots in our network.

And that’s a blockchain. Ordinary in concept and with many ways to implement for use cases. A lot of hard problems need to be solved for successful implementations, and Bitcoin is just presently the most popular of them.

A big question at this point is when there are conflicts in the ledger, how do we know which version is correct? My version says a transaction took place, while yours shows a different one. This conflict is the double-spending problem, an evident method to attempt and manipulate the system. Blockchain technology inherently does not solve this problem; implementations do. Bitcoin, for example, solves the double-spending problem by using proof-of-work. ↩

There’s lots to learn in this post. To help you reminisce, check out my app Harvest, the easiest way to grow your mind. You can write or highlight any text and the app will automatically send you reminders so you can optimize your long-term memory and learning (Add from Chrome store).

And now we get to the fresh kid on the block(chain), Ethereum. Investors and the public are treating it like another digital currency, but Ethereum can do a lot more than that.

Ethereum ELI5

If Bitcoin was made as a fresh currency for people, then Ethereum was made as a fresh application platform for people. What does application platform mean? It means anyone can build any kind of application on top of Ethereum, and use Ethereum’s blockchain as its “digital ledger” to store information. So yes – if you dreamed to, you could build your very own Bitcoin version on top of Ethereum.

Because we still need “Miners” (people ie. their computers) to validate transactions flowing across the network, we need to make sure Miners are still incentivized to do so. Bitcoin used Bitcoins as a prize. Ethereum has a similar concept – its main currency is called ether (ETH). Ether can be sent back and forward inbetween accounts, just like Bitcoins, and Miners validate each transaction to make sure an ETH hasn’t already been sent elsewhere, receiving a bit of ETH as their prize.

The thickest feature with Ethereum however, and the one that makes it an application platform instead of a mere currency, is that there can be accounts wielded by code (called “wise contracts”) and not wielded by people. How does that work? We said earlier that anyone can build any application; accounts possessed by code are exactly these applications, written by people and doing things using ETH as fees for doing them.

An example of an application is a “crowdsale” – say you want to raise a certain amount of money from people for a project or product, Kickstarter style. By specifying a target amount and a deadline, participants can pledge ETH to an account, which in turn will hold the ETH and only release the ETH to your account if it hits the target amount by the deadline. Otherwise the ETH is returned.

Ethereum’s popularity (and price) has grown monstrously in the very first half of 2017, as fresh applications are being created and investors and the public become more aware of its features. Look forward to continued innovation in this space!

Blockchain is a ledger of transactions that everyone possesses and contributes to.

Bitcoin is a digital currency with a immovable supply built on blockchain technology, and has a few nice features that people like so they give it value.

Ethereum is a platform that lets anyone build “decentralized applications” on top of their blockchain technology, and runs on its own currency called Ether.

Like this post? Fund future posts by contributing to my peak jars 🙂

Related video:

Blockchain technology for improving clinical research quality

Blockchain technology for improving clinical research quality

Reproducibility, data sharing, private data privacy concerns and patient enrolment in clinical trials are hefty medical challenges for contemporary clinical research. A fresh technology, Blockchain, may be a key to addressing these challenges and should draw the attention of the entire clinical research community.

Blockchain brings the Internet to its definitive decentralisation purpose. The core principle of Blockchain is that any service relying on trusted third parties can be built in a translucent, decentralised, secure “trustless” manner at the top of the Blockchain (in fact, there is trust, but it is hardcoded in the Blockchain protocol via a elaborate cryptographic algorithm). Therefore, users have a high degree of control over and autonomy and trust of the data and its integrity. Blockchain permits for reaching a substantial level of historicity and inviolability of data for the entire document flow in a clinical trial. Hence, it ensures traceability, prevents a posteriori reconstruction and permits for securely automating the clinical trial through what are called Brainy Contracts. At the same time, the technology ensures fine-grained control of the data, its security and its shareable parameters, for a single patient or group of patients or clinical trial stakeholders.

In this commentary article, we explore the core functionalities of Blockchain applied to clinical trials and we illustrate concretely its general principle in the context of consent to a trial protocol. Attempting to figure out the potential influence of Blockchain implementations in the setting of clinical trials will shed fresh light on how modern clinical trial methods could evolve and benefit from Blockchain technologies in order to tackle the aforementioned challenges.

Background

Fixing methodology issues is one of the fine challenges in contemporary biomedical research. Indeed, lack of reproducibility, related to a broad range of scientific misconduct aspects, from errors to frauds, compromises the outcomes of a clinical explore and undermines research quality. Lack of reproducibility has been extensively studied, and medical scientific publications have been found on the entire to be not reproducible: they are total of “bugs”. Ioannidis et al. estimated a rate of about 80% non-reproducible studies [1–Three]. This rate may be related to several types of errors, misconduct or fraud. Improving quality of research by better reproducibility and empowering both researcher communities with secure data sharing and patient communities with devices assuring their privacy are desirable goals that can be achieved in part with Blockchain technology [Four, Five].

Blockchain can have a global influence on clinical research because it permits for tracking, sharing and caring for data. Indeed, it involves a decentralised secure tracking system for any data interactions that could occur in the context of clinical trials, with a peer-to-peer inclusive network that enables data sharing on the research side and ensures all the needed transparency and care for privacy concerns on the patient community side.

In turn, this system can lead to more trust in clinical research, whose credibility has been considerably undermined with repeated scandals in latest years [6, 7]. Blockchain technology can be considered a basis for improved clinical research methodology and a step toward better transparency to improve trust within research communities and inbetween research and patient communities.

What is Blockchain?

Historically, Blockchain is known to be the technology powering Bitcoin, as an open, distributed public ledger recording all the Bitcoin transactions in a secure and verifiable way, without the need for a third party to process payments. In this context, Blockchain can be considered a total history of banking transactions.

More generically, Blockchain is a yam-sized, public, secure and decentralised datastore [8, 9] of ordered records, or events, called blocks. Each block contains a timestamp and is linked to a previous block [Ten]. Events can be updated by only a majority of users. Information cannot be erased. The datastore is possessed by no one, is managed by users and is not ruled by any trusted third party or central regulatory example. In fact, trust is encoded in the protocol and maintained by the community of users.

In practice, the Blockchain architecture permits for storing proofs of existence of data. As the only proof of data is the data of proof, we believe that this is a paradigm shift for medical research methodology.

Building reliable clinical studies: at each step, keep track and timestamp

Inviolability and historicity of data are two major features of data at the functional level, “the data level”. Regarding inviolability and historicity of data, it goes after that Blockchain ensures that events are tracked in their correct chronological order, which largely prevents a posteriori reconstruction analysis.

Very first, data integrity is ensured by the cryptographic validation of each transaction [11]. This is key to ensuring the sincerity of data — limiting data falsification, data “beautification” and in some sense data invention. 2nd, traceability and historicity of the data are among the core functionalities of the technology: each transaction with Blockchain is timestamped [12]. This information is publicly semitransparent; any user possesses a copy of the proof of the time-stamped data. Figure  one shows the sophisticated flows of heterogeneous data and metadata that circulate in a clinical trial, implying numerous healthcare stakeholders, and all documents whose proof of existence can be stored in Blockchain. Thus, the existence of data becomes provable while the data remain confidential.

Below, we list non-exhaustive examples of key information that can advantageously “sit on the top” of the Blockchain:

Privacy by design and data sharing in community-driven medicine

At the practice level, “the community level”, Blockchain is sometimes described as “trustless”, which can suggest the right conditions for data sharing. In fact, trust is built inwards the protocol. Blockchain can be considered as a “privacy-by-design” peer-to-peer infrastructure. With the level of trust it can enforce, it should be considered a path through the age of community-driven methodologies. Polls consistently display that about 80% of consumers are impatient to share their medical information [27], provided privacy and security can be ensured. With the transparency of the Blockchain database — possessed by no one, publicly writable by anyone and with strong crypto-oriented consistency of the database transaction — users do not need any third party to trust the system. Thus, the database opens a broad path to the data user’s control or differential privacy, data sharing and community-driven clinical probe [23]: in a trusted environment, clinical research teams can “crowd-recruit” people to be enrolled in protocols with the help of community management mechanisms, and people can also volunteer to participate in such studies. Indeed, the Estonian e-Health authority has just implemented a Blockchain solution enabling storage of a million health records, letting patients control data access through a “Keyless Signature Infrastructure” [28, 29].

On the researcher side, data sharing is a subject of good interest and can provide many benefits. Indeed, sharing anonymised raw data, analysable datasets or a statistical analysis plan is a strengthening factor for reproducibility in science, opening clinical trials to secondary analysis or meta-analysis [24, 30–32]. Blockchain implementations can enable distributed, secure cloud data sharing. The advanced Massachusetts Institute of Technology (MIT) project Enigma, still under testing and not officially released, is most promising. Enigma’s Blockchain treatment enables secure data sharing on a large scale and on a perimeter, finely controllable by the user who is sharing the data. With this kind of implementation, the data can be collective among any users or group of users, whether investigators, publishers or patients. The idea behind the technology is differential privacy: the user can fine-tune the equilibrium dose inbetween publicly semitransparent data and control of the collective part inbetween approved entities. Blockchain enables differential privacy in a secure way.

Clinical trial phase control: Wise Contracts

Besides archiving clinical trial-phase-compilable metadata on the Blockchain, we can also chain together different clinical trial steps so that each step depends on its predecessor. Blockchain technologies bring instruments to achieve these “slicing” and “chaining” processes, called Wise Contracts, and can enforce the level transparency, traceability and control over clinical trial sequences.

According to Wikipedia, “Wise Contracts are computer protocols that facilitate, verify, or enforce the negotiation of a contract” [33], and their execution can be implemented by using cryptographic hash chains. Practically, Wise Contracts enable the validation of a step with the only condition that every preceding step has been fully validated. For example, the chain of successive blocks could verify that the designed methodology has been followed, and the material introduced to publishers would consist of the publication itself and the set of blocks that constitute the Wise Contract, whose correct execution indicates proof that the probe was well conducted.

Figure  one shows that the Brainy Contract represents a chunk of code that holds a programmatically written contract inbetween as many parties as needed, without any trusted third party, and that executes algorithmically according to the terms provided by the contracting parties. Examples of Wise Contracts are permitting for patient inclusion with the only condition that they have consented or for enabling data analysis with the only condition that the database is frozen. Each of the clinical trial steps detailed in the figure can be chained together in a preceding order, consolidating a semi-transparent trial and preventing a posteriori reconstruction or beautification of data.

A proof of concept for collection of consent

In a proof-of-concept experimental examine, we implemented a Blockchain system to collect participant consent for a clinical trial ([34] (under review), [35]). Indeed, the US Food and Drug Administration reports that almost 10% of the trials that they monitor feature issues related to consent collection: failure to obtain written informed consent, unapproved forms, invalid consent document, failure to re-consent to a revised protocol and missing institutional review board approval to protocol switches [36, 37]. Precisely, in a fake experimental investigate, we timestamped each patient consent on the Blockchain and asked again for consent renewal with each revision of the protocol. We obtained a unique master document that holds, in a single data structure or lump of code called Chainscript [38], all the consent collection data, each trussed to a version of revised protocol versions. In fact, these data are “hashed”, that is, formatted into a sort of cryptographic form of the real consent and protocol document data. Of importance, this master document represents a secure, sturdy proof of existence of the entire consent-collection process because of a rigorous one-to-one correspondence inbetween hashed data and effective consent data. Also, this proof of existence can be checked on any dedicated public website.

Conclusions

Blockchain technology is a major chance for clinical research: it can help in structuring more see-through checkable methodology and, provided a set of core metadata is defined, can help check clinical trial integrity, transparently and partly algorithmically. Ultimately, Blockchain can lead to the structuration of some kind of community-driven Internet of health data, gathering researchers and patient communities, social networks and Internet of Things data flows, at a global dimension, with features of individual granularity, decentralisation and security and with translucent interactions to ensure lighter and more see-through analysis.

Acknowledgements

Funding

The authors announce no funding for this commentary article.

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Blockchain explained in plain English, ZDNet

Blockchain explained in plain English

Understanding how blockchain works and identifying myths about its powers are the very first steps to developing blockchain technologies

Movie: Blockchain in sixty seconds

After spending two years researching blockchain and the evolution of advanced ledger technologies, I still find a fine spectrum of understanding across my clients and business at large about blockchain. While ledger superpowers like Hyperledger, IBM, Microsoft and R3 are emerging, there remains a long tail of startups attempting to innovate on the very first generation public blockchains. Most of the best-selling blockchain books restrict themselves to Bitcoin, and extrapolate its apparent magic into a dizzying array of imagined use cases. And I’m continuously astonished to find people who are only just hearing about blockchain now.

It can seem that everyone is talking about blockchain and ledger technologies, but the truth is most people are not yet up to speed. No one should be bashful to ask what blockchain is indeed all about.

special report

You can this executive guide as a PDF (free registration required).

Many blockchain primers and infographics dive into the cryptography, attempting to explain to lay people how “consensus algorithms”, “hash functions” and digital signatures all work. In their enthusiasm, they can speed past the fundamental question of what blockchain was indeed designed to do. I’ve long been worried about a lack of critical thinking around blockchain and the activity it’s inspired. If you want to develop blockchain applications you only need to know what blockchain does, and not how it does it.

So I’ve written a report that explains how the blockchain works. It examines the founding principles of blockchain, describes its properties, and dispels common myths about its powers. The explanation below is an abridged excerpt from the report.

WHAT IS BLOCKCHAIN?

Blockchain is an algorithm and distributed data structure for managing electronic cash without a central administrator among people who know nothing about one another. Originally designed for the crypto-currency Bitcoin, the blockchain architecture was driven by a radical rejection of at (government-guaranteed) money and bank-controlled payments.

Blockchain is a special example of Distributed Ledger Technologies (DLTs), almost all of which have emerged in Bitcoin’s wake.

HOW DOES BLOCKCHAIN WORK?

Blockchain is a Distributed Ledger Technology (DLT) that was invented to support the Bitcoin cryptocurrency. Bitcoin was motivated by an extreme rejection of government-guaranteed money and bank-controlled payments. The developer of Bitcoin, Satoshi Nakamoto envisioned people spending money without friction, intermediaries, regulation or the need to know or trust other parties.

Technically, the original blockchain is separable from Bitcoin, but this report will display that the blockchain design is so specific to Bitcoin that it’s not a good fit for much else.

The central problem in electronic cash is Dual Spend. Because unspoiled electronic money is just data, nothing stops a currency holder from attempting to spend it twice. Blockchain solves the Dual Spend problem without a digital reserve fund or similar form of umpire.

Blockchain monitors and verifies Bitcoin transactions by calling upon a decentralized network of volunteer-run knots to, in effect, vote on the order in which transactions occur. The network’s algorithm ensures that each transaction is unique.

Several thousand knots make up the Bitcoin network. Once a majority of knots reaches consensus that all transactions in the latest past are unique (that is, not dual spent), they are cryptographically sealed into a block. Each fresh block is linked to previously sealed blocks to create a chain of accepted history, thereby preserving a verified record of every spend.

The Bitcoin blockchain’s functionality and security results from the network of thousands of knots agreeing on the order of transactions. The diffuse nature of the network ensures transactions and balances are recorded without bias and are resistant to attack by even a relatively large number of bad actors. In fact, the record of transactions and balances remains secure as long as a ordinary majority (51 percent) of knots remains independent. Thus, the integrity of the blockchain requires a excellent many participants.

One of the Bitcoin blockchain’s most innovative aspects is how it incentivizes knots to participate in the intensive consensus-building process by randomly rewarding one knot with a stationary bounty (presently 12.Five BTC) every time a fresh block is lodged and committed to the chain. This accumulation of Bitcoin in exchange for participation is called “mining” and is how fresh currency is added to the total system afloat.

Before attempting to extend blockchain technology to fresh applications it is significant to understand the intent of blockchain’s developers. To learn more about this, common myths about blockchain’s powers, and why blockchain may not useful for much else beside digital currency you can download the report Blockchain Explained in Plain English.

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Blockchain Atomic Ledger experiment records twenty million timestamped stock trades

Blockchain ‘Atomic Ledger’ experiment records twenty million timestamped stock trades

A group of researchers from the National Physical Laboratory, the Toronto Stock Exchange (TMX), and UK-based consultancy Z/Yen have brought atomic clock timestamp precision to stock market trading over a blockchain-style database.

The “Atomic Ledger” project recorded over twenty million transactions, with Co-ordinated Universal Time (UTC) generated from atomic clocks, from three hours of trading to the ChainZy distributed ledger system. The results will be analysed by Strathclyde’s Centre of Financial Regulation and Innovation.

Distributed ledgers enable financial market counterparties to store financial assets in a collective ledger. The team created a timestamping engine using Z/Yen’s woven-broadcasting distributed ledger architecture to test the recording of high-frequency trading transactions.

Existing financial market “clock synchronisation and timestamp requirements” mandate that both trading venues and market participants synchronise their clocks to Co-ordinated Universal Time (UTC). That said, different processing speeds, server capabilities and execution code can result in digitally programmed orders arriving at a market place at different times.

The Markets in Financial Instruments Directive (MiFID II) EU legislation, which comes into force on three January 2018, mandates more accurate timestamping traceable to UTC to promote improved transparency and better deals for customers. Current regulatory guidance suggests that trades need to be recorded in microseconds (a millionth of a 2nd).

The test used nanosecond resolution high-frequency data from the TMX located in Interxions’s London Data Centre with support from cloud provider Hyperneph. The researchers timestamped digital orders of varying programing length written to execute a series of buy and sell instructions. These were either logged with NPLTime, using the atomic clocks at NPL, or logged with UTC plus a randomly generated time lag. The orders were then sent to a central clearinghouse also operating on UTC and written onto a ChainZy distributed ledger.

The experiment will analyse the importance of timing in how orders are “cleared”, and provide insights into the need for precision timestamping in financial transactions, preferably at the microsecond level. The results are expected to provide a benchmark to incorporate the concept of timing into financial asset price discovery, said a statement

The application of precise, traceable and certified timestamps, as applied to the knots of a distributed ledger system, will enable a trusted treatment to the transactions as having existed at that point in time, across all platforms, according to Leon Lobo, Strategic Business Development for Time and Quantum, National Physical Laboratory.

Professor Michael Mainelli, executive chairman, Z/Yen Group, said: “We have been working with distributed ledger technology since one thousand nine hundred ninety five and are delighted that our ChainZy architecture has been able to support these high-speed applications, with a capacity for some twenty five billion transactions per day on this test equipment, a trillion transactions per day is in view commercially. Using NPL’s atomic clocks is a major step forward in adding authority to distributed ledgers for time-stamping.”

Daniel Broby, director of the Centre for Financial Regulation and Innovation, Strathclyde Business School, said: “The role of distributed ledgers and precision timing is becoming ever more relevant as Fintech companies adopt blockchain as a financial transmission contraption. This is an titillating trial that will have real world policy influence.”

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Blockchain Archives – Pinguin App

Tag: Blockchain

Every week we highlight the best tech events happening in Los Angeles. This week is SUPER busy so plan accordingly! LA’s growing tech scene has something to suggest everyone this week including Health Tech, Blockchain, Growth Marketing and just some good old fashioned networking. Here are the events we’ll be checking out this week. Hope to see you there!

Moderated by Indu Subaiya, CEO of Health Two.0, we will hear from Oscar Health, the Milken Institute, LA Physicians for Health, and the CA Physicians Alliance and our host at the Health Technology, and Engineering program at USC.

Join us this month for a night of growth stories and strategies from mobile experts at Tinder, CleverTap, ZipRecruiter, and Edmunds. We’ll kick off the evening with some beer, soft drinks, and pizza, and then hear lessons and best practices for app growth. We’ll cover everything from organic and paid user acquisition, retention and engagement strategies, and more.

Come out for an awesome discussion about how to grow your mobile business and meet some cool people involved in apps. Register on our official registration page.

Marketing & PR in the Blockchain Industry

Kelley Weaver, Founder & CEO of Melrose PR will be presenting at the next Ethereum Meetup about how to market your company and yourself in the blockchain industry. Agenda

– Melrose PR Background

– Why Marketing & Public Relations for blockchain companies?

– Melrose PR’s top four recommended marketing strategies

– How to craft a pitch

– Q&A Join us to network and learn how to boost your brand exposure!

Marketing & PR in the Blockchain Industry

Wednesday, Aug 23, 2017, 7:00 PM

Location details are available to members only.

40 Ethereals Attending

Kelley Weaver, Founder & CEO of Melrose PR will be presenting at the next Ethereum Meetup about how to market your company and yourself in the blockchain industry. Agenda – Melrose PR Background – Why Marketing & Public Relations for blockchain companies? – Melrose PR’s top four recommended marketing strategies – How to craft a pitch – Q&A Join us to …

XMAS In August

XMAS in August is the ONLY LA curated event dedicated to truly showcasing the latest consumer tech and lifestyle products. Exhibitors are only qualified to participate if you have (or will have) launched a fresh product inbetween February two thousand seventeen and January 2018.

This special event will include Beverages, Dinner, Dessert and all the coolest lifestyle and tech products from LA’s growing startup ecosystem. Join innovative and interesting startups and lifestyle companies from various backgrounds presenting their latest products.

Every exhibitor will also be allotted a 2-5 minute stage presentation at the XMAS Showcase Stage to present their product or company. Media attendees, sit back and ease off with your dinner and drinks and witness the exhibitors present their fresh goodies to YOU. Also, sign up to get review/demo units shipped to you after the event.

SiliconBeach DTLA Tech Mixer AUGUST 24th powered by Google

We’re 51,000 + members strong and growing every month! Don’t miss this chance to meet your next big business connection!

Our events are comprised of the most influential professionals in the area. Our purpose is to help our members forge strong, lasting relationships within the DTLA community – combining Fortune 500/1000s with Entrepreneurs and Startups. We creating unique opportunities & connections to help you grow your business and network!

Investing in the LA Tech Scene with special guest Upfront Ventures

Join Women’s Voices in Tech at Microsoft in Playa Vista for an evening of tech talk, networking with investors and insight on how to excel as a leader!

Meet Upfront Ventures, the most active investor in VC-backed tech startups! Upfront closed June with the announcement of a $400-million investment fund that it plans to spend on dozens of start-ups

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Blockchain: Any practices with NoSQL? Any suggestions for

Blockchain: Any practices with NoSQL? Any suggestions for alternatives?

We are working on a concept of blockchain an discuss about the set up technical architecture and choose stack. Since blockchain is a total decentralized solution we look for NoSQL(i.e Cassandra) or other implements, methods etc. We are fresh in the topic. Appreciate suggestions and insights. Thanks a lot!

Topics

All Answers (7)

I am using HBase on HIve so that I can take advantage of Hive Query language (HQL).

Note: On hadoop I have configured Hive on top of which HBase sits thus I can also perform MapReduce on my data.

Cassandra & Hbase are at the top of Blockchain others include accumulo http://accumulo.apache.org/ and Hypertable.

I agree with Devang Swami.

But why not also look to MongoDB?

I suggest to embark with investigation of suitability of different kinds of NoSQL solutions, such as:

All of them have their pros and cons.

Block – chain refers to those database systems which store each and every record and doesn’t delete them until a process called compaction is called. This way databases would store the history of all records.

For such applications, Key-value, DOcument-store, Graph and multi-model databases are not a candidate solution.

However, most databases under Column-oriented (aka wide-column store) are block-chains.

Dear friends, thanks for all your answers!

truly enlighten all of them 🙂

In general I believe the reason and value using blockchain is to have the posibility access the data + info in real time and in the latest version (independed of the format they have).

Lets say we have a heterogenous database system in a permissioned / private environment and we wannt apply blockchain.

It is possible thats fact.

The trick is to find the right infrastructure and define the context of sharing and accessibility of data + information.

The highest level and very first question comes in mind is:

– Do i need a platform or specific environement?

And the reaction is yes you need. (Please correct me if i am wrong 🙂 )

2nd question raises is:

– Are there any available platforms for blockchain?

Yes there are. But at this point iit s significant to understand that blockchain can be in the form of :

Depence on what one wants to do there are a bunch of the above categories to chooce.

For our case, – described above, permissioned + private environment- lets say we determine go for platform, following options could be applicable

  • Non-bitcoin currency + non-bitcoin blockchain: Ethereum, BitShares, Truthcoin, Litecoin, PayCoin.
  • Non-blockchain consensus: Ripple, Stellar, NXT, Hyperledger, Tendermint, Pebble, Open Transactions. These platforms implement decentralized consensus and decentralized trust without a blockchain construct as its nucleus.
  • Blockchain-neutral wise services: Eris Industries, PeerNova, Codius, SmartContract, SAE, Tezos, Tillit. This category will most likely need to be divided further, as it is still developing, but it includes a mix of decentralized platforms and interesting brainy contract services.

After choosing the right platform that fits on the business needs, other questions like programming language, implements, methods, abilities, people etc. raise.

Ms/Mrs Dimitra, very first block chain are builted on policy of availability & partition tolerance. Hence Transactions are not available as a build-in feature. This makes it necessary for designers & developers to design and implement a 2PC or 3PC for transactions. Other option include designing a database design that eliminates need for transaction which is usually difficult to achieve for banking systems.

Another aspect for block-chains is that they have been designed for Write-intensive tasks, and may be configured for read-write balanced workloads, if at all development team has that expertise.

So, I guess, very first task is to look for application workload type: read-intensive, write-intensive, or balanced workload. Once that is done, and u find block chain as a candidate solution you may leap to throughput requirements which would form background for h/w selection. Most block-chains have differences only in features, the concept remains same. Features may include geographic indexing, full-text search support, secondary indexes and others.

Albeit this write-up is fairly unconnected but is will bring more ideas, I guess.

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BitMoney Welcomes Everybody Looking to buy Bitcoins With Sofort – The Merkle

BitMoney Welcomes Everybody Looking to buy Bitcoins With Sofort

There are many different ways to purchase Bitcoin through traditional payments, especially when using the Internet to do so. BitMoney, a European platform where people can lightly buy Bitcoin with relative ease, is one of those companies worth checking out. In fact, the platform does not require any KYC verification for purchases under the US$200 limit.

BitMoney Makes Buying Bitcoins With Sofort Very Effortless

Companies such as BitMoney will be widely successful due to the convenience they provide to consumers all over the world. The platform supports transactions both denominated in US Dollar and Euro, which makes them fairly convenient to work with. Moreover, they accept a broad range of payment methods which will appease to consumers looking to inject into the world of cryptocurrency.

Speaking of the payment solutions provided by BitMoney, the list is fairly epic. Credit cards, iDeal, Sofort, and Bancontact are all supported. For people living in European this means there is a supported payment method for whichever type of transaction they are acquainted to. It is good to see such a large selection of payment methods, as it will improve the platform’s visibility.

It is worth mentioning BitMoney lets you buy bitcoins with Sofort to ensure transactions are finished quickly. One of the main advantages of the Sofort ecosystem is how bank transfers are authorized instantly, permitting merchants to release the goods in question. In this case, that means the ordered bitcoins will arrive into your wallet very quickly. Speed and convenience are significant when dealing with cryptocurrency, that much is certain.

Even if the customer does not have a Bitcoin wallet set up, the Bitmoney team will provide one for you. The company is working together with Spectrocoin to provide bitcoin wallet son behalf of customers automatically. The purchased bitcoins will automatically be sent to this wallet, after which the user is free to do with them as he or she pleases. Once again, a convenient solution provided by the Bitmoney platform at no extra cost.

Given the current Bitcoin price rally, buying BTC is something a lot of people are looking into. However, traditional exchanges are not convenient to use, and they instantaneously require users to go through a Know-Your-Customer procedure. BitMoney lets users buy up to US$200 worth of Bitcoin without going through such a procedure. This makes the platform a very powerful solution for people who are not convenient with the idea of a third-party controlling sensitive documents.

In the end, there is no valid reason not to give BitMoney a attempt. The company provides a quick and convenient solution to be yBitcoin without any prep needed. Their affordable rates, a broad range of payment solutions, and automated wallet generation are all major selling points for the platform. Anyone looking to buy bitcoins with Sofort should take a closer look at what BitMoney has to suggest.

If you liked this article, go after us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

About The Author

Jdebunt

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world’s leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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