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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 Week in Review – May 26, two thousand seventeen – Virtual Currency Report

Virtual Currency Report

Blockchain Week in Review – May 26, two thousand seventeen

Below is a summary of some of the significant legal and regulatory deeds that occurred over the past week. This alert is not intended to be a comprehensive list of all such developments, but rather a selection of publicly-reported news that may be of particular interest.

Vermont Law Recognizes Digital Currency as a Permissible Investment

Earlier this month, Vermont Governor Phil Scott signed a bill into law which made clear that bitcoin and other digital currencies are considered permissible investments under the state money transmitter licensing requirements. The fresh law defines eligible digital currency as “stored value that can be a medium of exchange, a unit of account or a stored value; has an equivalent value in money or acts as a substitute for money; may be centralized or decentralized; and can be exchanged for money or other convertible [digital] currency.” VT H.182

Florida to Enact Law Adding Digital Currency to Money Laundering Act

The Florida Legislature unanimously approved an amendment to the state’s criminal money laundering statue, which clarifies the statute’s definition of “virtual currency” and makes it a criminal offense to use virtual currency in laundering criminal proceeds. The legislation is presently with Florida’s governor awaiting signature. Assuming the bill is signed by the governor, the statute is scheduled to take effect July 1, 2017. HB one thousand three hundred seventy nine Text; HB one thousand three hundred seventy nine History; Four.28.17 Week-in-Review; Source.

West Virginia Lawmakers Finish Bill Criminalizing the use of Cryptocurrencies for Money Laundering

The West Virginia legislature has ended work on a bill that would make it a felony to use cryptocurrency for money laundering. The purpose of the bill is to “create criminal offenses relating to money laundering.” WV HB2585 Summary The bill defines “cryptocurrency” as “digital currency in which encryption mechanisms are used to regulate the generation f units of currency and verify the transfer of funds, and which operate independently of a central bank.” The bill also adds the term cryptocurrency into the definition of “monetary instruments.” Any property or monetary instruments involved with violating the freshly proposed bill would be subject to forfeiture. WV HB2585 Text HB2585 passed both the House and the Senate in West Virginia. The governor approved the bill, and the House added the statute’s text to Chapter fifty seven of its Regular Session Acts this week. WV HB2585 History

Congress Considers Bill Requiring Investigation of the use of Virtual Currency and Terrorism

Representative Kathleen Rice (D-NY) introduced HR two thousand four hundred thirty three to the House of Representatives this month, a bill that would direct the Secretary of Homeland Security for Intelligence and Analysis to develop and disseminate a threat assessment regarding terrorist use of virtual currency. The investigation would need to evaluate the actual and potential threat posed by individuals using virtual currency to carry out activities in furtherance of an act of terrorism.

Fresh York Files Lawsuit against OCC Fintech Charter

The Fresh York Department of Financial Services (“NYDFS”) filed an independent lawsuit challenging the OCC Fintech Charter. This lawsuit comes on the high-heeled shoes of another lawsuit challenging the legality of the proposed OCC Charter, filed by the Conference of State Bank Supervisors (“CSBS”). Four.28.17 Week-in-Review. NYDFS Superintendent Maria T. Vullo announced that lawsuit, filed in NY federal court, challenged “the decision of the Office of the Comptroller of the Currency (OCC) to grant special-purpose national bank charters to undefined ‘fintech’ companies.” The NYDFS complaint seeks “to stop the OCC from granting charters to institutions subject to Fresh York State law that provide financial services to Fresh York consumers based on the OCC’s unidentified and sweeping array of commercial ventures never before authorized or regulated by the OCC.” The NYDFS release describes the OCC’s charter decision as “lawless, ill-conceived, and destabilizing of financial markets that are decently and most effectively regulated by Fresh York and other State regulators.” NYDFS Press Release May 12, 2017. The CSBS issued a statement in support of NYDFS’s lawsuit against the OCC. CSBS May 12, two thousand seventeen Statement.

Congress Questions the IRS’s John Doe Subpoena for Coinbase

Last week, senior Republicans in Congress sent a letter to the Commissioner of the Internal Revenue Service, which suggested that the agency had overstepped its powers by requesting information about the IRS’s strategy for digital currency and latest events surrounding the IRS’s summons to Coinbase. The letter points out that the IRS issued guidance in two thousand fourteen indicating that digital currency would be treated as property for tax purposes, but by 2016, the agency had not yet developed a comprehensive digital currency tax strategy. In late 2016, however, the IRS issued a summons to the digital currency exchange Coinbase, which required the records of all American Coinbase customers who conducted transactions in convertible digital currency from 2013-2015. Sen. Orrin Hatch (R-UT), Rep. Kevin Brady (R-TX), and Rep. Vern Buchanan (R-FL) signed the letter, where the legislators “strongly” questioned “whether the IRS has actually established a reasonable basis to support the mass production of records for half a million people.” Fearing that the summons sets a “dangerous precedent for companies facilitating virtual currency transactions that could be subject to a similar summons,” the legislators also remarked that based “on the information before us, this summons seems overly broad, utterly burdensome, and very intrusive to a large population of individuals.” Members of the Senate Committee on Finance and House Committee on Ways and Means requested a briefing from the IRS on these issues. Letter from Congress to IRS, dated May 17, 2017; Two.Trio.2017 Week in Review; 12.Two.2016 Week in Review.

CFTC Announces Plans to open an Office for Fintech Innovation

The U.S. Commodity Futures Trading Commission (“CFTC”) announced its plan to open LabCFTC. This office will be the “focal point for the CFTC’s efforts to promote responsible Fintech innovation and fair competition for the benefit of the American public.” LabCFTC will provide a dedicated point of contact for Fintech innovators to engage with the CFTC, learn its regulatory framework, and obtain feedback and information about implementing technology ideas into the market based on existing law, CFTC regulation, and policy. To do this, the CFTC plans to: proactively engage with the innovator community to better understand how innovations interact with the regulatory and supervisory framework, collaborate with the industry and market participants to coordinate responsible innovation, participate in studies to foster responsible innovation, cooperate with financial regulators at home and overseas, monitor trends to ensure the regulatory framework does not stifle innovation, as well as engage with academics, students, and professionals to share information about the industry. LabCFTC will be located in Fresh York and is intended to “bridge the gap” inbetween today’s regulations and regulations for the 21st century for today’s digital markets. LabCFTC

Dubai Regulators Announce Special Testing License for Fintech Startups

The Dubai Financial Services Authority (“DFSA”) released plans detailing its Innovation Testing License (“ITL”) on Wednesday. Under this plan, Fintech startups in Dubai will be permitted to test their products under a restricted financial services license for 6-12 months, a period which can be extended by the DFSA. Successful applicants would then be required to obtain a total financial services license to proceed formally operating, and firms that fail to meet the required outcomes will have to cease activities. This fresh license creates, in essence, a regulatory sandbox that will permit startups to experiment with fresh ideas with a improvised exemption from the standard regulatory requirements that regulated companies face. Source; Source

Indian Government Requests Public Comment on Virtual Currency Regulation

The Indian Government invites constituents to comment and make suggestions on the use of virtual currency within India. The Indian Ministry of Finance made the announcement via its Twitter account on May 20, 2017, which invited public involvement in the future of virtual currency regulation. The Ministry is accepting input until May thirty one and is specifically looking for input on the following questions: (1) whether virtual currencies should be banned, regulated or observed? (Two) if virtual currencies should be regulated, how should India treat consumer protection, promote the development of virtual currency, and which institution should monitor? And (Three) if virtual currencies should not be regulated, how should they be self-regulated effectively and what measures should be taken to ensure consumer protection? Since 2013, the Indian government has issued several warnings to the public to be aware of the risks of virtual currencies. However, since the country has been demonetizing, many citizens have been using virtual currencies as an alternative to the Rupee. Source

Regulators in Gibraltar Propose Fresh Government Regulatory Framework for Digital Currency

The government of Gibraltar announced its purpose to establish itself as a hub of the Fintech sector and that it has made a public commitment to widely consult with the private sector and other interested parties to achieve that objective. The HM Government of Gibraltar, Ministry for Commerce, issued a paper entitled Proposals for a DLT Regulatory Framework, which investigates a regulatory treatment for the country to take that (1) provides regulatory certainty while meeting the challenge of regulating firms using the rapidly evolving technology, (Two) permits firms to grow and adapt while ensuring it does so securely, (Three) protects consumers and Gibraltar’s reputation, (Four) leverages Gibraltar’s standing as a quality financial center, (Five) does not compromise Gibraltar’s regulatory environment, (6) supports fresh firms seeking to embark up in Gibraltar, (7) encourages overseas enterprises to establish operations in Gibraltar, and (8) recognizes the need for “speed to market” in the authorization process of these firms. The paper establishes nine principles the country will require DLT firms to go after to ensure that the plan’s regulatory outcomes are achieved. The Minister for Commerce, Hon. Albert Isola, stated that he was delighted to publish the proposals for widespread public consumption and that he looked forward to receiving comments from the public. Public comments on the plan are due by June 6, 2017. Press Release; Proposals for a DLT Regulatory Framework

Related video:

Blockchain: five Key Concepts, Fintech Finance

Blockchain: five Key Concepts

By Dinis Guarda

Bockchain technology seems to be the buzzword of the day. Governments, entrepreneurs business people and banks, all have been paying attention and even allocating resources and investment to better understand and develop what sounds like the data structural holy grail of the future.

Blockchain promises to produce a shift in the current computing paradigm because it has the potential to become the infrastructure catalyst for the creation of decentralised applications.Blockchain can be seen as the next-step evolution from distributed computing architectural constructs, to a global database of data and interfaces, integrating all kinds of machines and sources of data.

But what is Blochain after all? In this introductory guide we review five key concepts that explain what blockchain is and why it is so revolutionary.

Five Key Concepts

In order to understand well blockchain one needs to grip the following five key concepts, how they interrelate to one another, and how they might provide us with a fresh computing paradigm.

Blockchain- five key concepts Infographic by Intelligenthq

Those five concepts are:

  • Blockchain
  • Decentralized databases applications consensus
  • Brainy contracts
  • Proof of work/stake.
  • Trusted advanced computing

As we all know blockchain technology began with the bitcoin. Bitcoin is a a peer-to-peer electronic payments system, also known as a cryptocurrency, that permits people to make instant, anonymous transactions online.

The unique characteristic of bitcoin is that it records every single transaction made on its network in a public record. This is known as the “blockchain”. A fresh blockchain is created every ten minutes. That blockchain is afterwards collective via the network. The chain is permanently growing, because each ended “blocks” is added to the public ledger. There are an infinite number of blocks on the blockchain, because as soon as one block gets finished, another is automatically generated. Each block tho’, contains a “hash”, which is a unique fingerprint of the previous code.

Two. Decentralised Databases Applications Consensus

Blockchain’s potential for the development of decentralised database applications consensus is based on the unique characteristics of the technology, as outlined previously.

What is used to secure the authentication of the source of the transaction is cryptography, through the hash codes. There is never a duplicate recording of the same transaction. As such, the need for a central intermediary is not there any more. This cracks with the paradigm of centralised consensus ( when one central database is used to rule transaction validity). As John Reed, former chairman and CEO of Citibank acknowledges:

“A decentralised scheme, on which the bitcoin protocol is based, transfers authority and trust to a decentralized virtual network and enables its knots to continuously and sequentially record transactions on a public “block,” creating a unique “chain”: this is the inception and keywords genesis for blockchain.”

Another way to put it is to think of blockchain as a meta database where you store any data semi-publicly in a linear container space (the block). Anyone can verify that you’ve placed that information because the container has a given signature on it, but only the person that created that bloc or a program can unlock what’s inwards the container because only that person holds the private keys to that data, securely. So, the blockchain is sort of a database, except that part of the information stored — its “header” — is available to the public. Here the public, of course, means a computer scientist or software engineer, knowing how to use it and how to access its APIs and different flows.

Distributed ledger taxonomy Infographic by Intelligenthq

William Mougayar, who wrote the book “The Business Blockchain” explains this with a superb metaphor for Blockchain, which is how it is based on one’ s own home address. One can publish hers or his home address publicly, but that doesn’t give any information about what the home looks like on the inwards. You’ll need your private key to come in your private home, and since you have claimed that address as yours, no one else can claim the same address as theirs.

The value of decentralised databases applications consensus is enormous and it promises to disrupt the current ecosystem that tends to the monopoly. Companies like eBay, Facebook and Uber are very valuable because they benefit tremendously from the network effects that come from keeping all user information centralised in private silos and how they act as middle studs taking a cut of all the transactions.

Decentralised protocols on top of the blockchain have the potential to undo every single part of the stacks that make these services valuable to consumers and investors. They can do this by, for example, creating common, decentralised data sets to which any one can buttplug into, and enabling peer-to-peer transactions powered by bitcoin and other cryptocurrencies.

A number of promising companies have already begun working on the protocols that will disrupt the business models of the companies above. One example is Lazooz, a protocol for real-time rail sharing and another is OpenBazaar, a protocol for free, decentralised peer-to-peer marketplaces.

Infographic by Intelligenthq

A scaled blockchain is something that starts proving a fresh global (somehow still science fiction) ecosystem. For this the clever contracts are the building blocks for decentralized applications.

Brainy contracts are contracts whose terms are recorded in a computer language instead of legal language. Wise contracts can be automatically executed by a computing system, such as a suitable distributed ledger system. The potential benefits of brainy contracts include low contracting, enforcement, and compliance costs; consequently it becomes economically viable to form contracts over numerous low-value transactions.

So the question behind Bitcoin and Blockchain is why depend on a central authority when two (or more) parties can agree inbetween themselves, and when they can bake the terms and implications of their agreement programmatically and conditionally, with automatic money releases when fulfilling services in a sequential manner, or incur in penalties if not fulfilled?

Clever contracts Infographic by Intelligenthq

Proof of stake (PoS) is a method by which a cryptocurrency blockchain network aims to achieve distributed consensus. While the proof of work (PoW) method asks users to repeatedly run hashing algorithms or other client puzzles to validate electronic transactions, proof-of-stake asks users to prove ownership of a certain amount of currency (their “stake” in the currency). Peercoin was the very first cryptocurrency to launch using proof-of-Stake. With Proof of Work, the probability of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles spent checking hashes). With Proof of Stake, the resource that’s compared is the amount of Bitcoin a miner holds – someone holding 1% of the Bitcoin can mine 1% of the “Proof of Stake blocks”. According to Bitcoin wiki Proof of Stake is one way of switching the miner’s incentives in favour of higher network security.

Five. Trusted advanced computing

The integration of all the different concepts outlined here, namely, the blockchain, decentralised consensus and clever contracts, enables the spreading of the resources and transactions laterally, in a plane, peer to peer manner, and in doing that,they are enabling computers to trust one another at a deep level.

If institutions and central organizations are necessary nowadays as trusted authorities, in the future, a certain number of their central functions can be codified via clever contracts that are governed by decentralised consensus on a blockchain.

Namely, due to the blockchain’s role as the unequivocal validator of transactions, each peer can proceed and trust one another, because the rules of trust, compliance, authority, governance, contracts, law, and agreements live on top of the technology.

If you prompt forward to a not-too-distant future, wise contracts and wise property will be created, dispensed or executed routinely inbetween consenting parties, without either of them even knowing that blockchain technology was the trusted intermediary. “Trusted computing” on the Web seems to be a key tenet of the fresh crypto-driven paradigm.

Related video:

http://www.youtube.com/watch?v=ln2FmlRUrs8

Bitcoin: The Digital Currency, in Nepal – Rigo Technology Blog

Bitcoin: The Digital Currency, in Nepal

Bitcoin: The Digital Currency, is considered as a payment system typically used as a peer-to-peer virtual transaction of money. The current value of this digital currency is $300 – $500, which hiked to $1200 in two thousand thirteen and failed to $100 in 2014. The fluctuation in the value of the Bitcoin hinted for a failure, but the financial markets of United States such as central banks, Silicon Valley and Wall Street are taking Bitcoin earnestly. Economists around the world now believe this technology is going to switch every industry that involves trust.

Bitcoin is a digital token that moves around and can be traded on a network of computers, scarce in itself as only twenty one million Bitcoins ever be created. Every transactions are recorded in a ledger continually maintained around the world, like so the value of each Bitcoin which originally embarked with fifty cents turn into gold rush value. This peer-to-peer payment system has made it possible for payment from one country to another without hassle of the currency exchange. It’s the same way people use credit card for the transactions, with anonymity. Recalling the history of Bitcoin, it actually commenced its network from Silk road, a drug-dealing website. Bitcoin made it possible for illegal transactions inbetween untrustworthy people for drugs and gambling, and each transaction went through every single time. Even tho’ it is considered as Black mark for Bitcoin’s history, it is here to stay to switch the monetary deals. To own a bitcoin, one must be on Bitcoin network with compatible computing resources, called mining. With the constant mining some bitcoins are generated and provided to the miners.

In the year 2009, Nepal embarked to use Bitcoin for online transactions. Previously few companies like Harilo, Bitcoin Nepal Private Limited, Hulas Remittance and few restaurants in Kathmandu traded/accepted Bitcoins for transactions.Đ’ Later on the year 2014, Central Bank of Nepal prohibitedĐ’ use/buying and selling of Bitcoins as illegal, but no official documents have been published so far and people have been using Bitcoins for trading.

The website www.bitcoinxnepal.com is particularly trading/exchanging Bitcoin in Nepal. The clients can buy services and items which is not possible to buy from Nepalese market.

Few of the people are using Social Networking sites such as Facebook for this process.

Some people are trading Bitcoin for Top up Recharge codes of Ncell Mobile Operator Company ofĐ’ Nepal.

During the devastating Earthquake that hit Nepal on April 2015, Bitcoin Community donated using Bitcoin for the victims.

Drawbacks of Bitcoin for Nepal

  • While trading Nepalese Currency into Bitcoins, there is no any such governing/monitoring figures that can prevent the flow of Nepalese currency into International Market.
  • The applications/software bought using Bitcoins cannot be proved genuine, which can also be maliciously coded to grab sensitive information of the victim.
  • Buying Top up recharge codes using Bitcoins cannot be proved genuine, as the codes may or may not work after payment.
  • Đ’ Regarding the donation received from Bitcoin Community during Earthquake 2015, there is no transparency of amount received and distributed to the victim.

Basically Bitcoin has created a thicker influence in people’s lives with the unlikely transaction process conjointly posing threat of Cyber-criminals and scammers because of the anonymity it provides.

Bitcoin: The Digital Currency, in Nepal – Rigo Technology Blog

Bitcoin: The Digital Currency, in Nepal

Bitcoin: The Digital Currency, is considered as a payment system typically used as a peer-to-peer virtual transaction of money. The current value of this digital currency is $300 – $500, which hiked to $1200 in two thousand thirteen and failed to $100 in 2014. The fluctuation in the value of the Bitcoin hinted for a failure, but the financial markets of United States such as central banks, Silicon Valley and Wall Street are taking Bitcoin earnestly. Economists around the world now believe this technology is going to switch every industry that involves trust.

Bitcoin is a digital token that moves around and can be traded on a network of computers, scarce in itself as only twenty one million Bitcoins ever be created. Every transactions are recorded in a ledger continually maintained around the world, like so the value of each Bitcoin which originally commenced with fifty cents turn into gold rush value. This peer-to-peer payment system has made it possible for payment from one country to another without hassle of the currency exchange. It’s the same way people use credit card for the transactions, with anonymity. Recalling the history of Bitcoin, it actually embarked its network from Silk road, a drug-dealing website. Bitcoin made it possible for illegal transactions inbetween untrustworthy people for drugs and gambling, and each transaction went through every single time. Even tho’ it is considered as Black mark for Bitcoin’s history, it is here to stay to switch the monetary deals. To own a bitcoin, one must be on Bitcoin network with compatible computing resources, called mining. With the constant mining some bitcoins are generated and provided to the miners.

In the year 2009, Nepal began to use Bitcoin for online transactions. Previously few companies like Harilo, Bitcoin Nepal Private Limited, Hulas Remittance and few restaurants in Kathmandu traded/accepted Bitcoins for transactions.Đ’ Later on the year 2014, Central Bank of Nepal prohibitedĐ’ use/buying and selling of Bitcoins as illegal, but no official documents have been published so far and people have been using Bitcoins for trading.

The website www.bitcoinxnepal.com is particularly trading/exchanging Bitcoin in Nepal. The clients can buy services and items which is not possible to buy from Nepalese market.

Few of the people are using Social Networking sites such as Facebook for this process.

Some people are trading Bitcoin for Top up Recharge codes of Ncell Mobile Operator Company ofĐ’ Nepal.

During the devastating Earthquake that hit Nepal on April 2015, Bitcoin Community donated using Bitcoin for the victims.

Drawbacks of Bitcoin for Nepal

  • While trading Nepalese Currency into Bitcoins, there is no any such governing/monitoring bods that can prevent the flow of Nepalese currency into International Market.
  • The applications/software bought using Bitcoins cannot be proved genuine, which can also be maliciously coded to grab sensitive information of the victim.
  • Buying Top up recharge codes using Bitcoins cannot be proved genuine, as the codes may or may not work after payment.
  • Đ’ Regarding the donation received from Bitcoin Community during Earthquake 2015, there is no transparency of amount received and distributed to the victim.

Basically Bitcoin has created a thicker influence in people’s lives with the unlikely transaction process conjointly posing threat of Cyber-criminals and scammers because of the anonymity it provides.

Bitcoin: The Digital Currency, in Nepal – Rigo Technology Blog

Bitcoin: The Digital Currency, in Nepal

Bitcoin: The Digital Currency, is considered as a payment system typically used as a peer-to-peer virtual transaction of money. The current value of this digital currency is $300 – $500, which hiked to $1200 in two thousand thirteen and failed to $100 in 2014. The fluctuation in the value of the Bitcoin hinted for a failure, but the financial markets of United States such as central banks, Silicon Valley and Wall Street are taking Bitcoin gravely. Economists around the world now believe this technology is going to switch every industry that involves trust.

Bitcoin is a digital token that moves around and can be traded on a network of computers, scarce in itself as only twenty one million Bitcoins ever be created. Every transactions are recorded in a ledger continually maintained around the world, like so the value of each Bitcoin which originally commenced with fifty cents turn into gold rush value. This peer-to-peer payment system has made it possible for payment from one country to another without hassle of the currency exchange. It’s the same way people use credit card for the transactions, with anonymity. Recalling the history of Bitcoin, it actually commenced its network from Silk road, a drug-dealing website. Bitcoin made it possible for illegal transactions inbetween untrustworthy people for drugs and gambling, and each transaction went through every single time. Even however it is considered as Black mark for Bitcoin’s history, it is here to stay to switch the monetary deals. To own a bitcoin, one must be on Bitcoin network with compatible computing resources, called mining. With the constant mining some bitcoins are generated and provided to the miners.

In the year 2009, Nepal commenced to use Bitcoin for online transactions. Previously few companies like Harilo, Bitcoin Nepal Private Limited, Hulas Remittance and few restaurants in Kathmandu traded/accepted Bitcoins for transactions.Đ’ Later on the year 2014, Central Bank of Nepal prohibitedĐ’ use/buying and selling of Bitcoins as illegal, but no official documents have been published so far and people have been using Bitcoins for trading.

The website www.bitcoinxnepal.com is particularly trading/exchanging Bitcoin in Nepal. The clients can buy services and items which is not possible to buy from Nepalese market.

Few of the people are using Social Networking sites such as Facebook for this process.

Some people are trading Bitcoin for Top up Recharge codes of Ncell Mobile Operator Company ofĐ’ Nepal.

During the devastating Earthquake that hit Nepal on April 2015, Bitcoin Community donated using Bitcoin for the victims.

Drawbacks of Bitcoin for Nepal

  • While trading Nepalese Currency into Bitcoins, there is no any such governing/monitoring figures that can prevent the flow of Nepalese currency into International Market.
  • The applications/software bought using Bitcoins cannot be proved genuine, which can also be maliciously coded to grab sensitive information of the victim.
  • Buying Top up recharge codes using Bitcoins cannot be proved genuine, as the codes may or may not work after payment.
  • Đ’ Regarding the donation received from Bitcoin Community during Earthquake 2015, there is no transparency of amount received and distributed to the victim.

Basically Bitcoin has created a thicker influence in people’s lives with the unlikely transaction process conjointly posing threat of Cyber-criminals and scammers because of the anonymity it provides.

Related video:

Bitcoin technology launches a Swiss start-up scene – SWI

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Main Features

Bitcoin is the most prominent example of so-called cryptocurrencies: digital currencies that use encryption technics for generating and verifying transactions.

Bitcoin may have fallen victim to volatility, but Switzerland has become fertile ground for start-ups banking on a different, digital future for currencies. And the Swiss franc’s latest activity has only added fuel to the fire.

When the Swiss National Bank (SNB) announced it had un-pegged the Swiss franc from the euro on January 15, sending the franc’s value skyrocketing, bitcoin enthusiasts took to the Web to say “I told you so”.

While the mainstream media had basically proclaimed bitcoin dead outward link after it lost 400% of its value since its height in November two thousand thirteen and was embroiled in a series of security scandals, the community supporting such digital currency – or cryptocurrency – witnessed the SNB’s stir as validation that a de-centralised monetary system is the way forward.

Outer Content

Yesterday the Washington Post said bitcoin needs a central bank to stabilize the currency. Today a decision by t. https://t.co/QrPZqIPgVU

Johann Gevers hails from South Africa but now lives in Switzerland where he goes a start-up called Monetas. He was “very blessed to see” the SNB’s budge which he eyed as unsustainable. The budge, he says, exposes the flaws in the idea of having a few people calling the shots at a central bank, which runs “completely counter” to his business’s philosophy of providing individual citizens control over their financial lives.

Cryptocurrency: a glossary

Bitcoin: The most-used type of digital currency, invented in two thousand eight by a person with the moniker Santoshi Nakamoto. Accepted by hundreds of online vendors worldwide, including Amazon and Cherry.

Cryptocurrency: A form of money that uses cryptography to control its creation and management

Blockchain: The public digital ledger keeping track of all bitcoin transactions

Monetas, in a nutshell, is a global payment system that can transfer any currency or commodity to another person anywhere in the world through a phone app, without a central authority controlling the transaction. To do so, it relies on the underlying technology behind bitcoin transactions. Its ultimate objective is what Gevers calls “the democratisation of finance” across borders and currencies.

On the other side of Switzerland, in the French-speaking city of Neuchâtel, Adrien Treccani is also hard at work on three bitcoin-related companies at another soon-to-be-launched cryptocurrency start-up hub known as Bitcoin Factory. A doctoral student in mathematical finance at the Swiss Finance Institute, Treccani is at home in two surroundings: the high-risk start-up culture surrounding cryptocurrency and the traditional Swiss financial world. When the euro peg was liquidated, he also believed the national bank’s policy had an expiration date and supported the decision – but he found reactions differed depending on which environment he was in.

“I was in favour of leaving the peg and I witnessed that many people in the bitcoin community had the same feeling, but not many people around me [in the finance world] agreed,” he says, chalking up the difference in opinion to cryptocurrency enthusiasts’ dislike of “the central bank’s cheating with the currency”.

Gevers would like to take things further and work directly with central banks “to have them see that the course they have been following so far is simply unsustainable and very dangerous to the social fabric”. For starters, one of his company’s goals is to talk to central banks about using the Monetas system and the cryptocurrency technology behind it in order to more sustainably issue currency.

However, former UBS chief historian Robert Vogler puts that idea in the category of “wishful thinking” and the Swiss National Bank did not comment on its preparedness to entertain such a concept.

For Vogler, the current cryptocurrency investment craze has shades of other movements in history following financial crises. He points to Silvio Gesell’s theories about issuing money at a constant value in the wake of a depression in Argentina in the late 1800s, or the WIR independent currency system that was founded in Switzerland in the 1930s and now also functions as an electronic currency. For him it’s no surprise that ideas for such fresh currencies always pop up following major financial and economic crises.

“These aspirations to eliminate oneself from reality have become a bit symptomatic, believing you can avoid certain dangers in the current system,” Vogler believes.

Outward Content

The following content is sourced from outer playmates. We cannot ensure that it is suitable for the visually or hearing impaired.

And as Boston University finance and management professor Zvi Bodie pointed out to the PBS NewsHour outward link , part of the trouble with bitcoin is that it’s not backed or ensured by any government, third party (like a credit card company) or physical, independently valuable entity (like gold).

No one is denying that bitcoin is volatile or the fact that it’s an enormously high-risk investment, says Treccani. That’s one of the three main things he thinks are holding it back from becoming more mainstream, the others being its accessibility and its security.

Right now, when compared to use of other payment methods like credit cards, bitcoin remains a niche; according to the Financial Times, the bitcoin system processes about 100,000 transactions a day, versus one hundred fifty million for Visa.

But Treccani points out that the cryptocurrency itself and the system it brings with it are two different things.

“You have to separate the bitcoin currency from bitcoin technology,” he says. “Then you begin eyeing the real value in the underlying innovation.”

That’s the innovation fuelling start-ups like those populating Crypto Valley and Bitcoin Factory. And Treccani sees more of his colleagues in the financial sector coming around to the technology.

“They might still not know why it is useful or different from the current system, but they see that bitcoin is a credible next step in financial innovation,” he says. Recently, the surest sign of the traditional financial world’s growing interest in cryptocurrency may have been the $75 million investment investment by the Fresh York Stock Exchange and other playmates in Coinbase, a major online marketplace for trading and storing bitcoin.

Outer Content

Pleased to share we've raised $75M led by @dfjgrowth @USAA @nyse @bbva @docomo and others. Focused on helping #bitcoin grow in two thousand fifteen & beyond

Mike Hearn, a freelance cryptocurrency software developer based in Switzerland, thinks bitcoin-related companies suggest a specific kind of investment chance that’s hard to find these days.

“If you look around in the technology sector there aren’t a lot of areas with high risk, high growth potential,” he says. “But bitcoin began from nothing with one fellow and now it’s this global phenomenon, everybody has heard about it and it’s grown a lot. So why not take a gamble on that?”

But Hearn doesn’t think such large-scale investments as the NYSE’s would have happened in Europe, where he believes people are much less likely to put lots of money into a venture linked to bitcoin’s volatile reputation.

Fabio Federici agrees. The gun-shy investor culture was one reason why he incorporated his start-up in Silicon Valley instead of in Switzerland, where he grew up and went to school. His company is designed to let merchants, investors and others have effortless access to the information stored in the bitcoin blockchain, the digital ledger of all bitcoin transactions.

But Gevers, Treccani and others working to develop the Swiss cryptocurrency start-up sector would argue Switzerland has more working for it than against it when it comes to being an attractive place to launch a company.

For one, the Swiss government and the Swiss National Bank issued a report outward link on regulating bitcoin last year, defining bitcoin as a means of payment like any other currency, outlining guidelines for merchants and traders. “At least they eyed bitcoin coming and have given a clear statement to start-ups and companies about how to deal with this technology,” Treccani says.

It amounts to a clearer regulatory environment for cryptocurrency in Switzerland, Treccani argues, compared with a certain degree of uncertainty in neighbouring countries or in the United States.

Cryptocurrency’s unpredictability is also the most intoxicating thing about it for investors. For now, that makes its future anything but certain and has led its enthusiasts to take its erraticism in their stride.

“I wish bitcoin were more stable, but you never know when even very stable national currencies can abruptly go crazy,” says Hearn.

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Bitcoin Payments with Sources

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Bitcoin Payments with Sources

Use Sources to accept payments using Bitcoin, the popular digital cryptocurrency.

Stripe users in the United States can accept Bitcoin for USD payments from customers using Sources—a single integration path for creating payments using any supported method.

During the payment process, a Source object is created and your customer is given a receiver address to send the required amount of bitcoin to. Your customer uses this information with their Bitcoin wallet service or app to send the bitcoin amount needed. After completing this, your integration uses the source to make a charge request and accomplish the payment.

Bitcoin is a push-based and single-use method of payment. This means your customer must take activity to send the required amount of bitcoin to you. The pushing of funds may take a few minutes since your customer must do this outside of your checkout flow, but the amount is instantaneously available as soon as the funds have been received. Once the source is chargeable, there can be instant confirmation about the success or failure of a payment.

Quickstart using Checkout

The simplest way to accept Bitcoin is with Checkout. After integrating Checkout for card payments, only one code switch is needed to begin accepting Bitcoin payments—the addition of data-bitcoin=”true” in the form’s code:

After specifying the amount in USD that you want to receive, Stripe treats displaying the converted amount in BTC that your customer needs to pay. Once a Bitcoin payment is received, Checkout submits the form with the following extra fields:

  • stripeToken : The ID of the chargeable Source object
  • stripeTokenType : The type of token returned—the value is source_bitcoin
  • stripeEmail : The email address provided by the customer

You can then instantaneously make a charge request using the source.

Step 1: Create a Source object

Stripe.js reference

This guide supplements our Stripe.js and Elements documentation with specific usage for Sources. Refer to this if you need further information on using Stripe.js or Elements.

If you want to build a custom-made integration for accepting Bitcoin, a Source object can be created client-side using Stripe.js or server-side using the API.

To create a source with Stripe.js, very first include the library within your payment page and set your publishable API key.

Once included, use the following source.create method to create a source, providing the following information:

Server-side source creation

The use of Stripe.js to create this type of source is optional, but very recommended. If you forgo this step and pass the information directly to Stripe when creating a Source object, you must take adequate steps to safeguard any sensitive information that may pass through your servers.

Using either method, Stripe comebacks a Source object containing the relevant details for the specified method of payment.

Error codes

Source creation for Bitcoin payments may comeback any of the following errors:

Step Two: Have the customer thrust funds

When creating a source, its status is primarily set to pending and cannot yet be used to create a charge. Your customer must send the specified amount of bitcoin to make the source chargeable. Customers thrust bitcoin to the address provided within the receiver[address] attribute. The bitcoin[amount] specifies the amount, in BTC, the customer needs to send.

There are three lumps of information you should display to the customer:

  • bitcoin[amount] : The amount (in Satoshi) that the customer must send. This amount, like all amounts used by the Stripe API, represents the smallest unit of currency. There are ten 8 (100,000,000) satoshi in one bitcoin, so the returned bitcoin[amount] must be divided by 100,000,000 to present the amount in BTC.
  • receiver[address] : The bitcoin address that is specific to this receiver
  • bitcoin[uri] : An encoding of the amount and address. If you encode this URI as a QR code, some Bitcoin apps can scan it. If this URI is introduced as a hyperlink, customers can click on it to activate their preferred Bitcoin client, if installed.

Step Three: Charge the Source

Using webhooks

Your integration needs to use webhooks to be notified of status switches on Source and Charge objects.

Once the customer has shoved the necessary funds, the source’s status transitions to chargeable and it can be used to make a charge request. This transitions happens asynchronously as confirming a Bitcoin transaction on the blockchain can take minutes.

For this reason it is essential that your integration rely on webhooks to determine when the source becomes chargeable in order to create a charge. Please refer to our best practices for more details on how to best integrate payment methods using webhooks.

Webhooks

The following webhook events are sent to notify you about switches to the source’s status:

Source expiration

A Bitcoin source must be used within six hours of becoming chargeable . If it is not, its status is automatically transitioned to canceled and your integration receives a source.canceled webhook event.

Similarly, a Bitcoin source’s ensured exchange rate expires after ten minutes, after which point it is canceled. Your JavaScript handler is called client-side and the source’s status transitions to canceled . Any fund received after a source is canceled are automatically refunded back to the customer.

Once a source is canceled, the customer’s bitcoin payment is refunded automatically—no funds are moved into your account. For this reason, make sure the order is canceled on your end and the customer is notified once you receive the source.canceled event.

If you receive that callback, you can instruct your servers to create a fresh source, then update the payment page with the fresh receiver’s information and begin polling.

Make a charge request using the source

Once the source is chargeable, from your source.chargeable webhook handler, you can make a charge request using the source ID as the value for the source parameter to accomplish the payment.

Bitcoin Sources are single-use and cannot not be used for recurring or extra payments. Refer to our Sources & Customers guide for more information on how single-use Sources interact with Customers.

Step Four: Confirm that the charge has succeeded

Since the customer has already shoved the funds at the time the Source is chargeable , unless there is an unexpected error, the Charge will instantaneously succeed.

You will also receive the following webhook event as the charge is created:

We recommend that you rely on the charge.succeeded webhook event to notify your customer that the payment process has been finished and their order is confirmed. Please refer to our best practices for more details on how to best integrate payment methods using webhooks.

Refunding Bitcoin payments

Bitcoin payments can be refunded through either the Dashboard or API. However, the Bitcoin address where to come back the funds needs to be provided by the customer. By default, we automatically contact the customer at the email address provided during source creation when a refund is created (or the source is canceled and funds need to be returned). Once the customer provides us with their Bitcoin address, we process the refund automatically.

Some users may want to manage the collection of the refund addresses themselves. Please contact us to learn more about this option.

Treating mispayments

The customer is responsible for sending the correct amount of bitcoin to pack the source. While uncommon, it is possible for a customer to send an unexpected amount that prevents a payment from being completed—resulting in a mispayment. This can happen when:

  • The customer sends too few bitcoin so the payment cannot be finished
  • The customer sends too many bitcoin and needs to be partially refunded
  • The customer sends the correct amount of bitcoin but they send it after too long a delay, or there’s a network error such that the source token is never posted to your server

All mispayments are treated automatically by Stripe. When a source is charged, any unused bitcoin received in excess will be returned to the customer automatically (after collecting their refund address as described in the previous section). Similarly, if a source is never charged, it is eventually canceled and any unused bitcoin is also returned the customer automatically.

You can help avoid the third possibility of mispayments through the use of webhooks. You can configure your integration to receive source.chargeable events, then subsequently create charges from those sources.

Testing Bitcoin payments

When creating a Source object using your test API keys, use one of Stripe’s test email addresses when you need to test Bitcoin payments under different conditions.

Related resources

Questions?

We’re always blessed to help with code or other questions you might have! Search our documentation, contact support, or connect with our sales team. You can also talk live with other developers in #stripe on freenode.

Bitcoin Payments with Sources

Payments

Subscriptions

  • Overview
  • Quickstart
  • Account Types
  • Accounts Overview
  • Standard
  • Express
  • Custom-built
    • Updating Accounts
    • Identity Verification
    • Required Info
  • Processing Payments
  • Creating Charges
    • Direct Charges
    • Destination Charges
    • Separate Charges and Transfers
  • Account Debits
  • Using Subscriptions
  • Numerous Currencies
  • Account Balances
  • Bank Payouts
  • Best Practices
  • Migrating
  • OAuth Reference
  • Webhooks
  • Testing

Radar

Account

Atlas

Bitcoin Payments with Sources

Use Sources to accept payments using Bitcoin, the popular digital cryptocurrency.

Stripe users in the United States can accept Bitcoin for USD payments from customers using Sources—a single integration path for creating payments using any supported method.

During the payment process, a Source object is created and your customer is given a receiver address to send the required amount of bitcoin to. Your customer uses this information with their Bitcoin wallet service or app to send the bitcoin amount needed. After completing this, your integration uses the source to make a charge request and accomplish the payment.

Bitcoin is a push-based and single-use method of payment. This means your customer must take act to send the required amount of bitcoin to you. The pushing of funds may take a few minutes since your customer must do this outside of your checkout flow, but the amount is instantly available as soon as the funds have been received. Once the source is chargeable, there can be instantaneous confirmation about the success or failure of a payment.

Quickstart using Checkout

The simplest way to accept Bitcoin is with Checkout. After integrating Checkout for card payments, only one code switch is needed to begin accepting Bitcoin payments—the addition of data-bitcoin=”true” in the form’s code:

After specifying the amount in USD that you want to receive, Stripe treats displaying the converted amount in BTC that your customer needs to pay. Once a Bitcoin payment is received, Checkout submits the form with the following extra fields:

  • stripeToken : The ID of the chargeable Source object
  • stripeTokenType : The type of token returned—the value is source_bitcoin
  • stripeEmail : The email address provided by the customer

You can then instantly make a charge request using the source.

Step 1: Create a Source object

Stripe.js reference

This guide supplements our Stripe.js and Elements documentation with specific usage for Sources. Refer to this if you need further information on using Stripe.js or Elements.

If you want to build a custom-made integration for accepting Bitcoin, a Source object can be created client-side using Stripe.js or server-side using the API.

To create a source with Stripe.js, very first include the library within your payment page and set your publishable API key.

Once included, use the following source.create method to create a source, providing the following information:

Server-side source creation

The use of Stripe.js to create this type of source is optional, but very recommended. If you forgo this step and pass the information directly to Stripe when creating a Source object, you must take adequate steps to safeguard any sensitive information that may pass through your servers.

Using either method, Stripe comebacks a Source object containing the relevant details for the specified method of payment.

Error codes

Source creation for Bitcoin payments may comeback any of the following errors:

Step Two: Have the customer thrust funds

When creating a source, its status is primarily set to pending and cannot yet be used to create a charge. Your customer must send the specified amount of bitcoin to make the source chargeable. Customers thrust bitcoin to the address provided within the receiver[address] attribute. The bitcoin[amount] specifies the amount, in BTC, the customer needs to send.

There are three chunks of information you should display to the customer:

  • bitcoin[amount] : The amount (in Satoshi) that the customer must send. This amount, like all amounts used by the Stripe API, represents the smallest unit of currency. There are ten 8 (100,000,000) satoshi in one bitcoin, so the returned bitcoin[amount] must be divided by 100,000,000 to present the amount in BTC.
  • receiver[address] : The bitcoin address that is specific to this receiver
  • bitcoin[uri] : An encoding of the amount and address. If you encode this URI as a QR code, some Bitcoin apps can scan it. If this URI is introduced as a hyperlink, customers can click on it to activate their preferred Bitcoin client, if installed.

Step Trio: Charge the Source

Using webhooks

Your integration needs to use webhooks to be notified of status switches on Source and Charge objects.

Once the customer has shoved the necessary funds, the source’s status transitions to chargeable and it can be used to make a charge request. This transitions happens asynchronously as confirming a Bitcoin transaction on the blockchain can take minutes.

For this reason it is essential that your integration rely on webhooks to determine when the source becomes chargeable in order to create a charge. Please refer to our best practices for more details on how to best integrate payment methods using webhooks.

Webhooks

The following webhook events are sent to notify you about switches to the source’s status:

Source expiration

A Bitcoin source must be used within six hours of becoming chargeable . If it is not, its status is automatically transitioned to canceled and your integration receives a source.canceled webhook event.

Similarly, a Bitcoin source’s ensured exchange rate expires after ten minutes, after which point it is canceled. Your JavaScript handler is called client-side and the source’s status transitions to canceled . Any fund received after a source is canceled are automatically refunded back to the customer.

Once a source is canceled, the customer’s bitcoin payment is refunded automatically—no funds are moved into your account. For this reason, make sure the order is canceled on your end and the customer is notified once you receive the source.canceled event.

If you receive that callback, you can instruct your servers to create a fresh source, then update the payment page with the fresh receiver’s information and commence polling.

Make a charge request using the source

Once the source is chargeable, from your source.chargeable webhook handler, you can make a charge request using the source ID as the value for the source parameter to finish the payment.

Bitcoin Sources are single-use and cannot not be used for recurring or extra payments. Refer to our Sources & Customers guide for more information on how single-use Sources interact with Customers.

Step Four: Confirm that the charge has succeeded

Since the customer has already shoved the funds at the time the Source is chargeable , unless there is an unexpected error, the Charge will instantly succeed.

You will also receive the following webhook event as the charge is created:

We recommend that you rely on the charge.succeeded webhook event to notify your customer that the payment process has been ended and their order is confirmed. Please refer to our best practices for more details on how to best integrate payment methods using webhooks.

Refunding Bitcoin payments

Bitcoin payments can be refunded through either the Dashboard or API. However, the Bitcoin address where to comeback the funds needs to be provided by the customer. By default, we automatically contact the customer at the email address provided during source creation when a refund is created (or the source is canceled and funds need to be returned). Once the customer provides us with their Bitcoin address, we process the refund automatically.

Some users may want to manage the collection of the refund addresses themselves. Please contact us to learn more about this option.

Treating mispayments

The customer is responsible for sending the correct amount of bitcoin to pack the source. While uncommon, it is possible for a customer to send an unexpected amount that prevents a payment from being completed—resulting in a mispayment. This can happen when:

  • The customer sends too few bitcoin so the payment cannot be ended
  • The customer sends too many bitcoin and needs to be partially refunded
  • The customer sends the correct amount of bitcoin but they send it after too long a delay, or there’s a network error such that the source token is never posted to your server

All mispayments are treated automatically by Stripe. When a source is charged, any unused bitcoin received in excess will be returned to the customer automatically (after collecting their refund address as described in the previous section). Similarly, if a source is never charged, it is eventually canceled and any unused bitcoin is also returned the customer automatically.

You can help avoid the third possibility of mispayments through the use of webhooks. You can configure your integration to receive source.chargeable events, then subsequently create charges from those sources.

Testing Bitcoin payments

When creating a Source object using your test API keys, use one of Stripe’s test email addresses when you need to test Bitcoin payments under different conditions.

Related resources

Questions?

We’re always blessed to help with code or other questions you might have! Search our documentation, contact support, or connect with our sales team. You can also talk live with other developers in #stripe on freenode.

Related video:

Bitcoin Gambling Investments Three

Bitcoin Gambling Investments Trio/12

It has now been three months since we began our Bitcoin Gambling Investments experiment and we have now made a 16.9% comeback on a Bitcoin basis and a 37.43% come back on a USD basis. In aggregate our initial five Bitcoin Investment is now worth Five.83987 Bitcoins, or on a USD basis our $3000 investment is now worth approximately $4123.

So albeit our total Bitcoin Investment dropped in value slightly from the previous month the rise in the value of Bitcoin has helped the investment grow significantly.

In the third month we did some further investigation into Satoshi Dice and MoneyPot and determined to discontinue our Bitcoin investments on their sites. We will go into further details on this decision later in this article (focusing on Satoshi Dice this time).

With the Bitcoins we took out from these sites we invested more Bitcoins into SafeDice and we also added Bitvest to our list of investments.

A summary of the investment comebacks on the current Bitcoin Gambling sites held is tabulated below:

Bitcoin Gambling Comes back After three Months

If you have been following the posts from the commence of this experiment you will know that MoneyPot and Satoshi Dice have been very disappointing. If you have missed the last posts they are below:

Why Pull Out Of Satoshi Dice?

Even however other sites have been up and down, Satoshi Dice has been plane or negative the entire time. The Bankroll is well over Three,500 Bitcoins however the amount wagered over the last three months is approximately one thousand five hundred Bitcoins. With a house edge of 1.9% you would expect 28.Five Bitcoins in Profit over the three months and half of that for investors at 14.25 Bitcoins.

14.25 Bitcoins in profit from a bankroll of Trio,500 Bitcoins gives a theoretical comeback of approximately 0.4% or 1.6% over a year. Absolutely not worth the risk in our opinion. With no sign that the site will improve we determined to pull out of Satoshi Dice.

What Happened To Satoshi Dice?

Satoshi Dice was the very first successful Bitcoin business the team at BGR had become aware of. When Erik Voorhees was promoting the site and when it was eventually sold for 126,315 Bitcoins in early 2013, we had to delve further.

We were so affected by the site, its was provably fair (a game changer for online gambling), it had a low house edge and was the most popular Bitcoin site around.

Hop forward almost three years from the sale of Satoshi Dice and they have been overtaken by their competitors on most of the competitive advantages they had just three years earlier. Satoshi Dice has now become the Myspace of business – overtaken by competition and left behind.

Such a petite amount of Bitcoins get wagered with regards to the size of the bankroll at Satoshi Dice that the comes back real or theoretic, make it one of the worst Bitcoin gambling sites to invest in presently.

Today Satoshi Dice has the worst house edge of all Dice sites. It has been down for uncountable days over the last month as constant DDOS attacks question the security of the site. It does not even suggest investors and players 2FA which is the low tech requirement for security these days. To top it off the Customer service can be very slow and vague on the Bitcoin Talk Forums.

While our frustration is pretty demonstrable in Satoshi Dice in this post, the issues it is having are very lightly motionless and we used to love Satoshi Dice, so we want to see a switch! I’m sure most of the fixes to make it popular again could be done in a day and to make it one of the best Bitcoin dice sites around again, arguable within a month.

These would include making the house egde 1%, adding 2FA, add better customer service, and to get the big high rollers in, give investors the capability to leverage their investment (making the max win compare to other sites). Add some good old marketing and you have a solid Bitcoin gambling site again.

If anyone from Satoshi Dice is reading this article – think about it

Bitcoin Gambling Investments Three/12 Summary

Overall the total comeback after three months of 37.43% on a USD basis has been exceptional, even tho’ the third month was slightly down on the 2nd one (on a Bitcoin basis). With our latest portfolio switch removing Satoshi Dice and MoneyPot and adding Bitvest we believe we are even better placed for the next nine months of growth. That is assuming one of the sites does not go down!

Related video:

Bitcoin Fork: Things You Should Do Before one August, Buy Bitcoins

Без кейворда

1 August, 2017. If you are an avid Bitcoin user, you understand how significant this date is for Bitcoin. It is when Bitcoin developers, along with miners and users will be conducting the first-ever soft fork on the currency through BIP one hundred forty eight – User Activated Soft Fork (UASF).

The soft fork is more popularly referred to as the ‘Segregated Witness’, whereby a fresh rule is implemented onto the Blockchain – in this case, enlargening block size boundaries on the Blockchain to improve the speed of confirming Bitcoin transactions.

If you use Bitcoin regularly, or have Bitcoin either in your wallets or on exchanges, it must be noted there are things you need to do before this soft fork occurs on one August. Very first of all, it is significant that you don’t scare as you observe the potential cyber-battle inbetween the communities who support and do not support this soft fork. This may potentially affect the value of Bitcoin but we can never know for sure, we can only speculate. The value may rise due to improved security, swifter transactions, etc., or it may drop.

The potential cyber-battle inbetween these two communities is strapped to occur on various social media, forums, and news agencies. It is significant that you stay peaceful amidst the arguments, doubts, and the potential drop in Bitcoin’s value. Selling your bitcoins in funk would not help anyone. If you think you would commence to funk, just be sure not to hold more than you are willing to lose while all this is happening.

Blockchain Split?

However, this is not the real issue you should be worried about. The real issue is the fact that some wallet services might face problems during and after the soft fork. This is in regards to some miners not signalling support for the Segregated Witness, ultimately resulting in the separation of the blockchain into two different networks, bringing two very similar yet different cryptocurrencies much like Ethereum and Ethereum Classic.

Albeit, if majority of miners signal their support for Segregated Witness on or before one August, the update will be activated flawlessly and you wouldn’t have to prepare for anything at all. However, it is always good to be fully ready for something that you are not downright sure about.

Don’t Lose Your Bitcoins!

So far, no wallet services have given any kind of assure of what is going to happen after the soft fork so be sure to stay updated and budge your coins to your own wallet where you have utter control of your private keys. It is significant that you have total control over your own private keys; otherwise, there is a risk of you losing your hard-earned bitcoins.

This can be done through using hardware wallets, paper wallets, and/or regular desktop or mobile wallets. Here’s a list of some wallets which give you a utter control over private keys. If the chain ever splits and we end up getting two very similar yet different types of Bitcoin – the fresh and the old – be sure not to purchase, sell, or trade, any old or fresh bitcoins until the situation has been lodged. Keep up-to-date with Bitcoin news to ensure that it is safe for you to transfer your bitcoins.

To sum it up, be sure not to scare and stay quiet during and after one August, even in the event of the value of Bitcoin decreasing– this is totally normal and the market will stabilise eventually – as we have seen with Ethereum and its hard fork. Most importantly, recall to be in total control of your private keys before the one August by moving your bitcoins to your private wallets.

Related video:

Bargeld: Bitcoin statt Euro, ZEIT ONLINE

Bargeld : Bitcoin statt Euro

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  2. Seite Two — Wie sicher die Digitalwährungen sind, ist umstritten

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An U-Bahnhöfen und einigen Parkautomaten funktioniert es längst: Einfach Bankkarte einstecken, schon wird das Geld abgebucht und das Ticket ausgedruckt. Auch im Supermarkt oder im Klamottenshop wird bereits häufig mit Kreditkarte bezahlt. Nur beim Bäcker und beim Zeitungskiosk muss man noch nach Kleingeld kramen, und der Kellner im Café ärgert sich, wenn man nicht wenigstens ein paar Münzen für ihn liegen lässt. Ansonsten funktioniert unser Leben schon ganz gut ohne Bargeld. Und vielleicht werden wir uns schon bald daran gewöhnen müssen, dass es gar keine Scheine und Münzen mehr gibt. Den 500-Euro-Schein will die Europäische Zentralbank ab two thousand eighteen nicht mehr drucken. Außerdem prüfen einige Zentralbanken bereits, wie eine Zukunft mit rein elektronischem Geld aussehen könnte.

Aber was wäre die Folge? Geben die Zentralbanken künftig nur noch virtuelles Geld aus, in Form von Nullen und Einsen? Die würden dann von den Zentralbankrechnern zu den Bankrechnern tickern und von dort auf die Girokonten der Bankkunden gebeamt. Wer künftig am Geldautomaten steht, bekäme dann keine Banknoten mehr, sondern eine Ladung Bits und Bytes auf seine Karte gespeichert, die er von den Läden dieser Welt wieder heruntersaugen lassen kann. Die Zentralbanken müssten keine Scheine mehr drucken und mit Lastwagen im ganzen Land verteilen. Der Kunde hätte vielleicht auch weniger Arbeit und könnte seine Bankkarte womöglich sogar am heimischen Computer mit Kryptogeld aufladen, oder sein Handy, oder seine Smartwatch.

Es könnte ähnlich funktionieren wie beim Bitcoin, den es als Computerwährung seit sieben Jahren gibt. Rechner in aller Welt generieren Bitcoins mit einer speziellen Software. Indem sie eine komplizierte mathematische Aufgabe lösen, schicken sie ständig neue Einheiten dieser Digitalwährung in die Welt. Nur mit enormer Rechenpower lassen sich neue Bitcoins schürfen, und nach rund twenty one Millionen Bitcoins ist Schluss, das haben die Entwickler festgelegt. Derzeit sind rund fifteen Millionen Bitcoins im Umlauf mit einem Wert von umgerechnet gut sechs Milliarden Dollar.

Der Bitcoin ist nicht preisstabil

Jeder, der den Gegenwert laut aktuellem Umtauschkurs dafür bezahlt, kann sich ein paar Bitcoins auf seinen Rechner laden und damit in vielen Läden und Onlineshops weltweit bezahlen. Was die Digitalwährung für viele so interessant macht: Jede Transaktion wird über ein großes Rechnernetzwerk abgewickelt. Im Moment der Datenübertragung (also auch der Geldübertragung) tauschen alle Rechner anhand der winzigen Datenpakete, die auf ihnen abgelegt sind, Informationen aus und bestätigen, dass der Bezahlvorgang seine Richtigkeit hat. So ist garantiert, dass der Bezahlende über das nötige Geld verfügt und der Empfänger es auch bekommt. Blockchain heißt die zugrundeliegende Technologie – eine Art dezentrales, praktisch fälschungssicheres Logbuch aller jemals getätigten Transaktionen. Anders als oft behauptet ist Bitcoin kein anonymes Zahlungssystem. Aber immerhin ist es unabhängig von staatlichen Stellen.

Das wäre ein Euro-Bitcoin natĂĽrlich nicht, denn der wĂĽrde von Zentralbanken ausgegeben. Eine wirkliche “virtuelle Währung” wäre er damit nicht, sagt ein Sprecher der Bundesbank. Den Euro gebe es ja auch ganz real. Konkrete Pläne fĂĽr eine digitale Währung existieren bei der Bundesbank noch nicht: “Sie dĂĽrfte auch in naher Zukunft nicht zu erwarten sein”, so der Sprecher. Sollte allerdings kĂĽnftig ein Digital-Euro auf Basis der Blockchaintechnologie angedacht werden, wären noch viele Fragen offen:

Wer sendet die digitalen Daten auf die vielen Rechner? Wer hätte Zugriff auf die Rechnerkette – wäre sie fĂĽr alle offen und damit manipulationsanfällig, oder kämen nur ausgewählte Nutzer dran? Wer verwaltet die Daten und pflegt Ă„nderungen ein? An solchen Fragen arbeitet man in Frankfurt: “Die Bundesbank befasst sich derzeit vor allem mit der zugrunde liegenden Blockchain- und Distributed-Ledger-Technologie, um eine mögliche Anwendung im heutigen Zahlungsverkehr besser bewerten zu können”, sagt der Sprecher. Mit der Technologie können Zahlungen sehr schnell abgewickelt werden – ohne Intermediäre wie Banken oder Börsenhandelsplätze.

Einen Knackpunkt sieht die Bundesbank aber bereits: “Notenbanken geben grundsätzlich Zentralbankgeld aus und zwar in Form von Bargeld (derzeit sind im Eurosystem knapp 1,1 Billion Euro in Umlauf) sowie in Form von Buchgeld (die Guthaben von Kreditinstituten bei den Eurosystem-Zentralbanken betragen quick six hundred Milliarden Euro).” Wenn die Notenbanken das Zentralbankgeld ausgeben, sind sie an die Regelungen des EU-Vertrages gebunden. Sie mĂĽssen unter anderem Preisstabilität gewährleisten, dazu haben sie sich verpflichtet. “Dieses konnte in den zurĂĽckliegenden Jahren auch erreicht werden. Im Gegensatz dazu zeichnen sich virtuelle Währungen – wie Bitcoin – durch starke Kursschwankungen aus, die eben keine stabile Wertentwicklung bedeuten”, schränkt die Notenbank ein. Die fehlende Stabilität ist die groĂźe Schwäche des Bitcoins, dessen Umtauschwert seit two thousand fourteen zwischen one hundred eighty und six hundred seventy Dollar schwankte. FĂĽr Deutschlands Notenbanker gibt es daher nur eine Schlussfolgerung: Eine digitale Währung auf Basis der Blockchaintechnologie könne nur eine digitale Variante der herkömmlichen Währung sein. Ein digital verarbeiteter Euro sozusagen.

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Banks are sold on blockchain, worried about collaboration, American Banker

Banks are sold on blockchain, worried about collaboration

Several ideas are emerging about the adoption of blockchain in the financial services industry that are fairly different than what anyone would have predicted two or three years ago.

The choices banks are making are steering financial blockchains in a direction that is far from the mysterious Satoshi Nakamoto’s conception of it, and closer to more traditional technologies out there today — a Google Docs of sorts for banks with immutability and security built in.

1. Things are moving quicker than expected; blockchain technology should be ready for broad use by banks within a year.

Only last spring, analysts were proclaiming that mainstream adoption of blockchain technology was ten years away. Following the fever pitch of blockchain chatter in 2015, observers expected two thousand sixteen to be the year where expectations were tempered.

But bankers and several other financial blockchain experts at a conference hosted by the Depository Trust and Clearing Corp. Wednesday referred to two thousand seventeen as the year of the blockchain pilot, and two thousand eighteen as the year blockchain technology will be used in production in financial services.

"To use a flying analogy, we’ve got the landing gear out and we’re preparing the final descent," said Emmanuel Aidoo, head of blockchain and distributed ledger strategy at Credit Suisse.

"All of us are focused on making this real in 2017," said Todd McDonald, co-founder and chief operating officer of R3, a bank consortium that has developed a “blockchain inspired” platform called Corda. “We all need to make this real this year into next.”

The list of financial blockchains in or close to prime time is growing.

Digital Asset Holdings, the blockchain technology company founded by former JPMorgan Pursue executive Blythe Masters, plans to have a blockchain product ready for banks to use by the end of 2017, said Chris Church, its chief business development officer.

Northern Trust recently went live with a blockchain for private equity funds, based on technology from the Linux Foundation Hyperledger Project and IBM.

“I believe two thousand seventeen is the year we see live networks versus proof of concepts,” said Jerry Cuomo, fellow and vice president of blockchain technologies at IBM. “I think we’re eyeing the real evidence that blockchain is not going to come, it’s here.”

Microsoft’s Blockchain as a Service, a set of blockchain building blocks that runs on the Azure cloud, is also market ready. Bank of America has been using it to create a blockchain to automate trade finance.

JPMorgan Pursue has developed a blockchain called Quorum that’s based on Ethereum.

In February, the DTCC ended a distributed ledger proof of concept with Digital Asset to better manage the netting process for repurchase agreement transactions. The DTCC also plans to shift its Trade Information Warehouse, which keeps records on derivatives contracts, to a distributed ledger in collaboration with IBM, R3 and other fucking partners.

Two. Bankers see blockchain technology mainly as a way to save money.

It’s not surprising that bankers would want to save money. Most have to reduce their cost and efficiency ratios to get through and stay in regulators’ good graces. But when you think about the original premise of the blockchain — a means of recording anonymous digital currency transactions that would circumvent the traditional payment system and pass under the radar of the government, this is a leap.

Credit Suisse, for one, has conducted ten proofs of concept with blockchain startups to achieve cost reductions.

"We tend to look at projects that can give us, if I’m being fair, 50% or greater cost reductions," Aidoo said. "If I’m being more pragmatic, it’s more like 35%. Anything less than that doesn’t warrant execution."

Northern Trust, which has done twenty proofs of concept for blockchain technology and recently went public with its blockchain for private equity funds, also concentrates on streamlining, which would lead to cost cuts.

“We determined to embark on a mission to improve efficiency,” said Justin Chapman, global head of market advocacy and innovation research at Northern Trust.

During its earlier stages, there was hope that blockchain could be a way to to suggest fresh products and services and automate certain things, like supply chains and international remittances, that in the past couldn’t be digitized with one technology. While some are still pondering revenue opportunities on blockchain, the promise of efficiency is what is driving bankers’ interest today.

Three. The idea of "permissionless" blockchains has pretty much been dropped by the industry.

Looking back at blockchain developments over the past year, Church at Digital Asset Holdings said the financial world agreed to abandon the idea of permissionless distributed ledgers. In other words, blockchains anybody could join. Banks have gravitated toward permissioned blockchains that can only be used by those who are invited — say, counterparties to derivatives contracts or trade finance playmates.

"The permissioned environment is going to prevail because it meets the requirements of this marketplace," Church said. "That was a very significant intellectual understanding people got to."

Four. Integration/collaboration is the fattest perceived hurdle.

Asked what presents the greatest challenge to blockchain adoption — data security, privacy, scalability, business case or integration — about half of the DTCC conference audience picked integration. Last year at a similar conference, about a third of the audience chose this option. Integration in this context seems to mean the capability to work with other banks’ and partners’ blockchain technology.

“Interoperability is key: if you look at visible challenges, privacy and scalability are solved,” Church said. “If you do get interoperability, which will require collaboration, all sorts of things become possible. If you have a single source of truth, services can be built off of that, and there’s a giant market chance. Cross processes permit fresh products and services to be created.”

Aidoo noted that privacy is still tricky, because even with a permissioned, invitation-only blockchain, there can still be certain data elements not everyone on the chain should see.

“We talk about public versus private blockchains, but it’s more complicated than that,” he said. For example, the “Chinese walls” Wall Street firms have to maintain mean people in some parts of the organization should not be able to access certain information.

Aidoo also voiced anxiety about collaboration. “I worry about execution risk, meaning things like, do we have the right playmates, do we have the right ecosystem, do we have the right playmates from a collaboration perspective?” he said.

One thing many agree on: Blockchain technology is inescapable for this industry.

“This is not going to stop,” Aidoo said. “This technology will be as pervasive as SQL servers and databases.”

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