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Five Practical Ways Bitcoin and Blockchain Can Influence your Petite Business

Five Practical Ways Bitcoin and Blockchain Can Influence your Puny Business

With all the hum around blockchain tech and cryptocurrencies, puny businesses might feel left out.

Even for those who are not necessarily cutting-edge in terms of tech, these five tips can empower entrepreneurs and petite businesses in leveraging bitcoin and blockchain as cryptocurrencies for their financial and other needs.

Using Bitcoin and Blockchain in Your Puny Business

Accepting Payments in Bitcoin and Other Cryptocurrencies

The survival of the cryptocurrency revolution is totally reliant on its acceptance, and that is where puny businesses can excel. Some larger companies, like Amazon and Tesla, are presently accepting cryptocurrency with not too many puny businesses hopping on board.

Very first, let’s talk a moment about why accepting cryptocurrency can be of benefit to you:

Little to no fees — Credit card processors will lightly charge you 2-4 percent in fees for using the service. Cryptocurrency transfers are close to free, albeit services will usually charge a minimal amount (0-1 percent) which means you will save money. Note that you can use services that can confirm blockchain transfers swifter, but will have a thicker fee to expedite it.

Quicker access to your funds — Banks are not involved with the transactions, and there are no centralized clearing processes. This means you get the payments considerably quicker. For example, most bank-based payment processors send payment within 1-2 days. You can get Bitcoin payments within minutes to a few hours, depending on the network’s cryptographic explosion.

No government ties — Since cryptocurrencies are not tied to any governments or regulatory agencies, there are no borders to consider. You can avoid international exchange rates or transaction fees.

Avoid disputes — Albeit cryptocurrencies are entirely digital, they work like cash rather than credit. All sales are final, and there is no way for a customer to dispute a transaction. If you have had issues with people contesting charges, accepting cryptocurrency can switch that for you.

You can actually make a name for yourself by being a pioneer in this regard. It’s as effortless as setting up a payment processor that specializes in cryptocurrency.

While many services will suggest “wallet” capability, some startups go beyond this. CryptoPay, for example, offers both a digital wallet for Bitcoins and a physical debit card, which permits users to spend cryptocurrency at any establishment that accepts Visa debit cards. CryptoPay is one of the more established players in this niche and is planning to raise funds through an initial coin suggesting (ICO) in order to further improve its services.

Signing Agreements with Vendors Through Clever Contracts

Signing agreements with vendors would usually require a lawyer to draw up a contract for you and your client to sign. This can be an agreement for an exchange of service and money, accomplish with the agenda and timeline. You would wait for the contract to be finalized, parties to sign it, and it would get notarized. Then you would do the work and expect payment to arrive. If the other party didn’t pay you as agreed, you would then go back to your lawyer to bring suit against the other party.

Brainy contracts switch all of that by making it simpler.

Blockchain technology makes brainy contracts possible — these are digitally-signed agreements to execute certain things when certain conditions are met. You create it with the services you will provide, the mutually agreed upon cryptocurrency amount and the deadline for the service to be finished.

Once submitted, the contract cannot be altered, and copies will be hosted across all the knots in the blockchain, so that it’s downright accessible at any time. Because the contract is on the blockchain, it is monitored to be sure the service promised is delivered. Then when the service is provided, the cryptocurrency is exchanged on the due date without anyone having to do anything to begin the process.

There are services to enable businesses and individuals to execute legally-binding wise contracts, such as Agrello, which dispenses with the need for middlemen, such as lawyers, and eliminates the possibility of cracking the contract.

Conserving Power through Brainy Electrical Grids

While cryptocurrencies have been criticized for their excessive use of electro-therapy, we are eyeing a turnaround in being able to conserve power through the blockchain. In some larger cities, folks are selling solar power on the blockchain to one another.

Essentially, they harvest the solar energy from their own solar panels and then store the excess on a wise power grid. Then, they utilize blockchain technology in order to monitor tens unit usage, availability of solar-generated power, and such.

These communities also use the blockchain to sell excess energy to their neighbors or the electrical play grid, or to acquire energy when their solar cells are brief. All transactions are, of course, dealt with in cryptocurrency.

As a puny business proprietor, you can benefit from using someone else’s excess solar energy, which can result in savings from buying tens unit from the grid. If you have a big enough solar power facility, you can even be a net seller of electrical play.

The Brooklyn Micro Gird is a P2P energy market based on the blockchain technology. Such projects and initiatives will improve our capability to monitor and manage transactions, as well as creating a connected and distributed network that could disrupt the energy market on a larger scale.

Keeping Track of Logistics and Vendor Shipping

As we mentioned previously, the blockchain is tamper-resistant when it comes to the integrity of your documents. You can add whatever you want, and you cannot delete or switch any document or transactions within the blockchain – albeit everything can be audited and monitored by all parties involved.

This means a lot for the petite business possessor who needs to track inventory. When you receive inventory, its transaction is recorded in the blockchain. When you sell that item, it’s recorded. When you ship the item, it’s recorded. Who you purchase the inventory from, who purchases it, and who is shipping is all recorded and makes your life much lighter. This means no more costly programs that are supposed to do this for you that happen to permit for transactions to be altered or deleted. All of it is done in real-time and with no major cost to you.

Several startups are attempting to revolutionize the supply chain. The future holds many promises and it’s only a matter of time until businesses use this technology.

Paying Utility Bills Through Bitcoin Wallets

In the past, one of the reasons people weren’t excited about cryptocurrency was the lack of use for everyday items. We want to be able to pay bills or buy gas with our cryptocurrency and permit our bank accounts to grow while we do so. This has leisurely been switching and we are observing more Bitcoin wallets providing the capability to make utility payments for us.

The above-mentioned platform CryptoPay offers a way to lightly make bill payments without having to by hand transfer your Bitcoins to your US dollar bank account. Some wallets even let you convert your Bitcoins to fiat currency (like Euros or US dollars) so you won’t be affected by the volatile values.

Conclusion

While cryptocurrencies haven’t been embraced over the last few years like we had hoped, we are still watching growth happen — both in terms of their values vis-à-vis fiat currency and more acceptance across different businesses. Hopping on board now broadens your customer base and provides you with some added benefits that you can’t get in today’s current market.

Related video:

Five Benefits of Cryptocurrency: A Fresh Economy For The Future

Five Benefits of Cryptocurrency: A Fresh Economy For The Future

Over the last duo of years the term cryptocurrency has been rapidly gaining the public eye. You might be more familiar with terms like Bitcoin, Litcoin and Ether. These are all cryptocurrencies.

In fact, there many! Just take a quick look

Just a ordinary google trend search shows you the commence of the growth

But before you proceed reading, I want to give a brief primer of cryptocurrency

A cryptocurrency is a digital currency that is created and managed through the use of advanced encryption technologies known as cryptography. Cryptocurrency made the leap from being an academic concept to (virtual) reality with the creation of Bitcoin in 2009. While Bitcoin attracted a growing following in subsequent years, it captured significant investor and media attention in April two thousand thirteen when it peaked at a record $266 per bitcoin after surging 10-fold in the preceding two months. Bitcoin sported a market value of over $Two billion at its peak, but a 50% plunge shortly thereafter sparked a furious debate about the future of cryptocurrencies in general and Bitcoin in particular. So, will these alternative currencies eventually supplant conventional currencies and become as ubiquitous as dollars and euros someday? Or are cryptocurrencies a passing fad that will flame out before long? The reaction lies with Bitcoin.

HOW WILL CRYPTOCURRENCY WILL HELP YOU?

The world is becoming more and more economically unsafe. This is not to say we are not growing. But asNassim Taleb states in his book. Antifragile. Our economic machine is like a glass jaw. one petite punch to it and it all comes crushing down! Both long term and brief term this is not good for you and all of the hard working citizen of the world.

“FRAGILITY IS THE QUALITY OF THINGS THAT ARE VULNERABLE TO VOLATILITY.”

– NASSIM NICHOLAS TALEB

So below, I will outline some pros and cons of us adopting a global acceptance of Cryptocuurency. And my hopes with this is…you will walk away with having found fresh found respect for cryptocurrency.

PROS AND CONS OF CRYPTOCURRENCY

The benefits of cryptocurrency over current fiat currency tech

Example: Central governments can’t take it away

Recall what happened in Cyprus in March 2013? The Central Bank wished to take back uninsured deposits larger than $100,000 to help recapitalize itself, causing meaty unrest in the local population. It originally desired to take a percentage of deposits below that figure, eating directly into family savings. That can’t happen with cryptocurrency/bitcoin. Because the currency is decentralized, you own it. No central authority has control, and so a bank can’t take it away from you. For those who find their trust in the traditional banking system unravelling, that’s a big benefit.

Let’s take a look at some of the improvements that can be made to fiat currency by shifting towards digital cash:

ADVANTAGES OF CRYPTOCURRENCY

  • Fraud: Cryptocurerncies are digital and cannot be counterfeited or reversed arbitrarily by the sender, as with credit card charge-backs.
  • Identity Theft: When you give your credit card to a merchant, you give him or her access to your utter credit line, even if the transaction is for a puny amount. Credit cards operate on a “pull” basis, where the store initiates the payment and pulls the designated amount from your account. Cryptocurrency use a “push” mechanism that permits the cryptocurrency holder to send exactly what he or she wants to the merchant or recipient with no further information
  • Instant Settlement: Purchasing real property typically involves a number of third parties (Lawyers, Notary), delays, and payment of fees. In many ways, the bitcoin/cryptocurency blockchain is like a “large property rights database,” says Gallippi. Bitcoin contracts can be designed and enforced to eliminate or add third party approvals, reference outer facts, or be finished at a future date or time for a fraction of the expense and time required to finish traditional asset transfers.
  • Access to Everyone: There are approximately Two.Two billion individuals with access to the Internet or mobile phones who don’t presently have access to traditional exchange systems. These individuals are primed for the Crytocurrency market. Kenya’s M-PESA system, a mobile phone-based money transfer and micros financing service recently announced a bitcoin device, with one in three Kenyans now wielding a bitcoin wallet. (Let me repeat that again. 1/Three)
  • Lower Fees: There aren’t usually transaction fees for cryptocurrency exchanges because the miners are compensated by the network (Side note: This is the case for now). Even however there’s no bitcoin/cryptocurrency transaction fee, many expect that most users will engage a third-party service, such as Coinbase, creating and maintaining their own bitcoin wallets. These services act like Paypal does for cash or credit card users, providing the online exchange system for bitcoin, and as such, they’re likely to charge fees. It’s interesting to note that Paypal does not accept or transfer bitcoins.

“THE BLOCKCHAIN KEEPS EVERYONE Fair, AND A Entire LAYER OF BANKING BUREAUCRACY IS Liquidated, LOWERING COSTS.” — PAUL VIGNA

MOST Significant. YOU OWN IT

There is no other electronic cash system in which your account isn’t wielded by someone else. Take PayPal, for example: if the company determines for some reason that your account has been misused, it has the power to freeze all of the assets held in the account, without consulting you (Trust me, this has happen to me many times) It is then up to you to hop through whatever hoops are necessary to get it cleared, so that you can access your funds. With cryptocurrency, you own the private key and the corresponding public key that makes up your cryptpcurrency address. No one can take that away from you (unless you lose it yourself, or host it with a web-based wallet service that loses it for you).

THE BAD THINGS ABOUT CRYPTOCURRENCY

Overall, cryptocurrencies have a long way to go before they can substitute credit cards and traditional currencies as a device for global commerce.

Bottom Line: Cryptocurrency is a baby. It will needs years and years of exposure to the global system, before the masses begin accepting it.

CRYPTOCURRENCY DISADVANTAGES:

  • Fact is many people are still unaware of cryptocurrency aka Digital currency
  • People need to be educated about it to be able to apply it to their lives.
  • Businesses need to embark accepting it
  • They need to make it lighter to sign up and get began.

HIGH RISK OF LOSS

Timothy B. Lee, adjunct scholar at the Cato Institute and regular contributor to Forbes.com, identifies four reasons to be cautious about bitcoins:

  • Lack of Security. There is no safety net or ideal way to protect your bitcoins from human error (passwords), technical glitches (hard drive failures, malware), or fiduciary fraud. According to an article in the UK edition of Wired, eighteen of forty web-based businesses suggesting to exchange bitcoins into other fiat currencies have gone out of business, with only six exchanges reimbursing their customers. The authors of the investigate estimate that the median lifespan of any bitcoin exchange is three hundred eighty one days, with a 29.9% chance that a fresh exchange will close within a year of opening.
  • Enlargened Regulation. While relatively benign guidelines are presently in place, law enforcement agencies could determine that bitcoins are a “giant money laundering scheme,” and enact more stringent regulations that would diminish the currency’s value.
  • Limited Scaling. The design of the system thresholds the speed and number of transactions processed, making it unlikely that bitcoins will substitute conventional credit card transactions.
  • Lack of Applications. While acknowledging bitcoins’ popular use for illegal transactions, Lee questions how useful bitcoins truly are. To be truly disruptive to existing fiat currencies or electronic payment systems, Bitcoin would need applications for low-cost international money transfers, the creation of complicated electronic contracts, or use in Kickstarter-style fundraising campaigns or micropayment transfers.

FINAL THOUGHTS

There are always pros and cons to any situation in life. To be able to make a good decision, you need to weigh the good and bad meticulously before finalizing your choice. With Cryptocurrency, it’s more about mass acceptance than technology. The technology is here. Only time will tell when the rest of the world (governments, citizens) will say…YES!

Five Benefits of Cryptocurrency: A Fresh Economy For The Future

Five Benefits of Cryptocurrency: A Fresh Economy For The Future

Over the last duo of years the term cryptocurrency has been rapidly gaining the public eye. You might be more familiar with terms like Bitcoin, Litcoin and Ether. These are all cryptocurrencies.

In fact, there many! Just take a quick look

Just a elementary google trend search shows you the begin of the growth

But before you proceed reading, I want to give a brief primer of cryptocurrency

A cryptocurrency is a digital currency that is created and managed through the use of advanced encryption technics known as cryptography. Cryptocurrency made the leap from being an academic concept to (virtual) reality with the creation of Bitcoin in 2009. While Bitcoin attracted a growing following in subsequent years, it captured significant investor and media attention in April two thousand thirteen when it peaked at a record $266 per bitcoin after surging 10-fold in the preceding two months. Bitcoin sported a market value of over $Two billion at its peak, but a 50% plunge shortly thereafter sparked a furious debate about the future of cryptocurrencies in general and Bitcoin in particular. So, will these alternative currencies eventually supplant conventional currencies and become as ubiquitous as dollars and euros someday? Or are cryptocurrencies a passing fad that will flame out before long? The reaction lies with Bitcoin.

HOW WILL CRYPTOCURRENCY WILL HELP YOU?

The world is becoming more and more economically unsafe. This is not to say we are not growing. But asNassim Taleb states in his book. Antifragile. Our economic machine is like a glass jaw. one petite punch to it and it all comes crushing down! Both long term and brief term this is not good for you and all of the hard working citizen of the world.

“FRAGILITY IS THE QUALITY OF THINGS THAT ARE VULNERABLE TO VOLATILITY.”

– NASSIM NICHOLAS TALEB

So below, I will outline some pros and cons of us adopting a global acceptance of Cryptocuurency. And my hopes with this is…you will walk away with having found fresh found respect for cryptocurrency.

PROS AND CONS OF CRYPTOCURRENCY

The benefits of cryptocurrency over current fiat currency tech

Example: Central governments can’t take it away

Recall what happened in Cyprus in March 2013? The Central Bank wished to take back uninsured deposits larger than $100,000 to help recapitalize itself, causing gigantic unrest in the local population. It originally dreamed to take a percentage of deposits below that figure, eating directly into family savings. That can’t happen with cryptocurrency/bitcoin. Because the currency is decentralized, you own it. No central authority has control, and so a bank can’t take it away from you. For those who find their trust in the traditional banking system unravelling, that’s a big benefit.

Let’s take a look at some of the improvements that can be made to fiat currency by shifting towards digital cash:

ADVANTAGES OF CRYPTOCURRENCY

  • Fraud: Cryptocurerncies are digital and cannot be counterfeited or reversed arbitrarily by the sender, as with credit card charge-backs.
  • Identity Theft: When you give your credit card to a merchant, you give him or her access to your utter credit line, even if the transaction is for a petite amount. Credit cards operate on a “pull” basis, where the store initiates the payment and pulls the designated amount from your account. Cryptocurrency use a “push” mechanism that permits the cryptocurrency holder to send exactly what he or she wants to the merchant or recipient with no further information
  • Instant Settlement: Purchasing real property typically involves a number of third parties (Lawyers, Notary), delays, and payment of fees. In many ways, the bitcoin/cryptocurency blockchain is like a “large property rights database,” says Gallippi. Bitcoin contracts can be designed and enforced to eliminate or add third party approvals, reference outward facts, or be finished at a future date or time for a fraction of the expense and time required to finish traditional asset transfers.
  • Access to Everyone: There are approximately Two.Two billion individuals with access to the Internet or mobile phones who don’t presently have access to traditional exchange systems. These individuals are primed for the Crytocurrency market. Kenya’s M-PESA system, a mobile phone-based money transfer and micros financing service recently announced a bitcoin device, with one in three Kenyans now wielding a bitcoin wallet. (Let me repeat that again. 1/Trio)
  • Lower Fees: There aren’t usually transaction fees for cryptocurrency exchanges because the miners are compensated by the network (Side note: This is the case for now). Even tho’ there’s no bitcoin/cryptocurrency transaction fee, many expect that most users will engage a third-party service, such as Coinbase, creating and maintaining their own bitcoin wallets. These services act like Paypal does for cash or credit card users, providing the online exchange system for bitcoin, and as such, they’re likely to charge fees. It’s interesting to note that Paypal does not accept or transfer bitcoins.

“THE BLOCKCHAIN KEEPS EVERYONE Fair, AND A Entire LAYER OF BANKING BUREAUCRACY IS Eliminated, LOWERING COSTS.” — PAUL VIGNA

MOST Significant. YOU OWN IT

There is no other electronic cash system in which your account isn’t wielded by someone else. Take PayPal, for example: if the company determines for some reason that your account has been misused, it has the power to freeze all of the assets held in the account, without consulting you (Trust me, this has happen to me many times) It is then up to you to hop through whatever hoops are necessary to get it cleared, so that you can access your funds. With cryptocurrency, you own the private key and the corresponding public key that makes up your cryptpcurrency address. No one can take that away from you (unless you lose it yourself, or host it with a web-based wallet service that loses it for you).

THE BAD THINGS ABOUT CRYPTOCURRENCY

Overall, cryptocurrencies have a long way to go before they can substitute credit cards and traditional currencies as a implement for global commerce.

Bottom Line: Cryptocurrency is a baby. It will needs years and years of exposure to the global system, before the masses embark accepting it.

CRYPTOCURRENCY DISADVANTAGES:

  • Fact is many people are still unaware of cryptocurrency aka Digital currency
  • People need to be educated about it to be able to apply it to their lives.
  • Businesses need to begin accepting it
  • They need to make it lighter to sign up and get began.

HIGH RISK OF LOSS

Timothy B. Lee, adjunct scholar at the Cato Institute and regular contributor to Forbes.com, identifies four reasons to be cautious about bitcoins:

  • Lack of Security. There is no safety net or flawless way to protect your bitcoins from human error (passwords), technical glitches (hard drive failures, malware), or fiduciary fraud. According to an article in the UK edition of Wired, eighteen of forty web-based businesses suggesting to exchange bitcoins into other fiat currencies have gone out of business, with only six exchanges reimbursing their customers. The authors of the explore estimate that the median lifespan of any bitcoin exchange is three hundred eighty one days, with a 29.9% chance that a fresh exchange will close within a year of opening.
  • Enlargened Regulation. While relatively benign guidelines are presently in place, law enforcement agencies could determine that bitcoins are a “giant money laundering scheme,” and enact more stringent regulations that would diminish the currency’s value.
  • Limited Scaling. The design of the system boundaries the speed and number of transactions processed, making it unlikely that bitcoins will substitute conventional credit card transactions.
  • Lack of Applications. While acknowledging bitcoins’ popular use for illegal transactions, Lee questions how useful bitcoins truly are. To be truly disruptive to existing fiat currencies or electronic payment systems, Bitcoin would need applications for low-cost international money transfers, the creation of sophisticated electronic contracts, or use in Kickstarter-style fundraising campaigns or micropayment transfers.

FINAL THOUGHTS

There are always pros and cons to any situation in life. To be able to make a good decision, you need to weigh the good and bad scrupulously before finalizing your choice. With Cryptocurrency, it’s more about mass acceptance than technology. The technology is here. Only time will tell when the rest of the world (governments, citizens) will say…YES!

Five Benefits of Cryptocurrency: A Fresh Economy For The Future

Five Benefits of Cryptocurrency: A Fresh Economy For The Future

Over the last duo of years the term cryptocurrency has been rapidly gaining the public eye. You might be more familiar with terms like Bitcoin, Litcoin and Ether. These are all cryptocurrencies.

In fact, there many! Just take a quick look

Just a ordinary google trend search shows you the commence of the growth

But before you proceed reading, I want to give a brief primer of cryptocurrency

A cryptocurrency is a digital currency that is created and managed through the use of advanced encryption technics known as cryptography. Cryptocurrency made the leap from being an academic concept to (virtual) reality with the creation of Bitcoin in 2009. While Bitcoin attracted a growing following in subsequent years, it captured significant investor and media attention in April two thousand thirteen when it peaked at a record $266 per bitcoin after surging 10-fold in the preceding two months. Bitcoin sported a market value of over $Two billion at its peak, but a 50% plunge shortly thereafter sparked a furious debate about the future of cryptocurrencies in general and Bitcoin in particular. So, will these alternative currencies eventually supplant conventional currencies and become as ubiquitous as dollars and euros someday? Or are cryptocurrencies a passing fad that will flame out before long? The reaction lies with Bitcoin.

HOW WILL CRYPTOCURRENCY WILL HELP YOU?

The world is becoming more and more economically unsafe. This is not to say we are not growing. But asNassim Taleb states in his book. Antifragile. Our economic machine is like a glass jaw. one puny punch to it and it all comes crushing down! Both long term and brief term this is not good for you and all of the hard working citizen of the world.

“FRAGILITY IS THE QUALITY OF THINGS THAT ARE VULNERABLE TO VOLATILITY.”

– NASSIM NICHOLAS TALEB

So below, I will outline some pros and cons of us adopting a global acceptance of Cryptocuurency. And my hopes with this is…you will walk away with having found fresh found respect for cryptocurrency.

PROS AND CONS OF CRYPTOCURRENCY

The benefits of cryptocurrency over current fiat currency tech

Example: Central governments can’t take it away

Reminisce what happened in Cyprus in March 2013? The Central Bank desired to take back uninsured deposits larger than $100,000 to help recapitalize itself, causing fat unrest in the local population. It originally wished to take a percentage of deposits below that figure, eating directly into family savings. That can’t happen with cryptocurrency/bitcoin. Because the currency is decentralized, you own it. No central authority has control, and so a bank can’t take it away from you. For those who find their trust in the traditional banking system unravelling, that’s a big benefit.

Let’s take a look at some of the improvements that can be made to fiat currency by shifting towards digital cash:

ADVANTAGES OF CRYPTOCURRENCY

  • Fraud: Cryptocurerncies are digital and cannot be counterfeited or reversed arbitrarily by the sender, as with credit card charge-backs.
  • Identity Theft: When you give your credit card to a merchant, you give him or her access to your total credit line, even if the transaction is for a puny amount. Credit cards operate on a “pull” basis, where the store initiates the payment and pulls the designated amount from your account. Cryptocurrency use a “push” mechanism that permits the cryptocurrency holder to send exactly what he or she wants to the merchant or recipient with no further information
  • Instantaneous Settlement: Purchasing real property typically involves a number of third parties (Lawyers, Notary), delays, and payment of fees. In many ways, the bitcoin/cryptocurency blockchain is like a “large property rights database,” says Gallippi. Bitcoin contracts can be designed and enforced to eliminate or add third party approvals, reference outer facts, or be ended at a future date or time for a fraction of the expense and time required to finish traditional asset transfers.
  • Access to Everyone: There are approximately Two.Two billion individuals with access to the Internet or mobile phones who don’t presently have access to traditional exchange systems. These individuals are primed for the Crytocurrency market. Kenya’s M-PESA system, a mobile phone-based money transfer and micros financing service recently announced a bitcoin device, with one in three Kenyans now wielding a bitcoin wallet. (Let me repeat that again. 1/Three)
  • Lower Fees: There aren’t usually transaction fees for cryptocurrency exchanges because the miners are compensated by the network (Side note: This is the case for now). Even tho’ there’s no bitcoin/cryptocurrency transaction fee, many expect that most users will engage a third-party service, such as Coinbase, creating and maintaining their own bitcoin wallets. These services act like Paypal does for cash or credit card users, providing the online exchange system for bitcoin, and as such, they’re likely to charge fees. It’s interesting to note that Paypal does not accept or transfer bitcoins.

“THE BLOCKCHAIN KEEPS EVERYONE Fair, AND A Entire LAYER OF BANKING BUREAUCRACY IS Liquidated, LOWERING COSTS.” — PAUL VIGNA

MOST Significant. YOU OWN IT

There is no other electronic cash system in which your account isn’t wielded by someone else. Take PayPal, for example: if the company determines for some reason that your account has been misused, it has the power to freeze all of the assets held in the account, without consulting you (Trust me, this has happen to me many times) It is then up to you to leap through whatever hoops are necessary to get it cleared, so that you can access your funds. With cryptocurrency, you own the private key and the corresponding public key that makes up your cryptpcurrency address. No one can take that away from you (unless you lose it yourself, or host it with a web-based wallet service that loses it for you).

THE BAD THINGS ABOUT CRYPTOCURRENCY

Overall, cryptocurrencies have a long way to go before they can substitute credit cards and traditional currencies as a contraption for global commerce.

Bottom Line: Cryptocurrency is a baby. It will needs years and years of exposure to the global system, before the masses embark accepting it.

CRYPTOCURRENCY DISADVANTAGES:

  • Fact is many people are still unaware of cryptocurrency aka Digital currency
  • People need to be educated about it to be able to apply it to their lives.
  • Businesses need to begin accepting it
  • They need to make it lighter to sign up and get began.

HIGH RISK OF LOSS

Timothy B. Lee, adjunct scholar at the Cato Institute and regular contributor to Forbes.com, identifies four reasons to be cautious about bitcoins:

  • Lack of Security. There is no safety net or ideal way to protect your bitcoins from human error (passwords), technical glitches (hard drive failures, malware), or fiduciary fraud. According to an article in the UK edition of Wired, eighteen of forty web-based businesses suggesting to exchange bitcoins into other fiat currencies have gone out of business, with only six exchanges reimbursing their customers. The authors of the explore estimate that the median lifespan of any bitcoin exchange is three hundred eighty one days, with a 29.9% chance that a fresh exchange will close within a year of opening.
  • Enhanced Regulation. While relatively benign guidelines are presently in place, law enforcement agencies could determine that bitcoins are a “giant money laundering scheme,” and enact more stringent regulations that would diminish the currency’s value.
  • Limited Scaling. The design of the system boundaries the speed and number of transactions processed, making it unlikely that bitcoins will substitute conventional credit card transactions.
  • Lack of Applications. While acknowledging bitcoins’ popular use for illegal transactions, Lee questions how useful bitcoins truly are. To be truly disruptive to existing fiat currencies or electronic payment systems, Bitcoin would need applications for low-cost international money transfers, the creation of sophisticated electronic contracts, or use in Kickstarter-style fundraising campaigns or micropayment transfers.

FINAL THOUGHTS

There are always pros and cons to any situation in life. To be able to make a good decision, you need to weigh the good and bad meticulously before finalizing your choice. With Cryptocurrency, it’s more about mass acceptance than technology. The technology is here. Only time will tell when the rest of the world (governments, citizens) will say…YES!

Related video:

Trio Solutions for Instant Bitcoin Confirmations

Three Solutions for Instant Bitcoin Confirmations

Merchants and customers don’t want to wait around for Bitcoin confirmations.

One of the so-called “problems” with Bitcoin in the eyes of fresh users is the lack of instant confirmations. Transactions are usually viewed as generally secure after a few confirmations on the blockchain, but this can create a problem in situations where you want to buy something from a store and then leave without having to wait around for the next block. The time inbetween fresh blocks has led to the creation of a number of different altcoins that boast confirmation times in the one minute range, but creating an entirely fresh cryptocurrency is not necessary wen you’re just attempting to speed up transaction times. There are also people who believe that unconfirmed Bitcoin transactions are relatively secure, but the fact remains that only confirmed transactions should be trusted. Let’s take a look at three different solutions for making instant Bitcoin confirmations both possible and generally safe.

The Centralized Solution

The most common way that people are dealing with instant confirmations right now is through centralized services such as Coinbase. With this solution, the Bitcoin wallet provider is storing the private keys for customers and merchants, which means there is no risk of a double-spend inbetween two of their users. As long as the transaction is inbetween two Coinbase addresses, the transaction will actually take place off the blockchain. This means that Coinbase simply switches their internal account ledger rather than updating the censorship-resistant Bitcoin blockchain. These “off-chain” transactions also have the advantage of carrying no fees, which makes microtransactions a more realistic possibility. While this is the most widely used solution right now, it is also the most problematic. Bitcoin is supposed to be a entirely decentralized currency and payment system, so creating a fresh version of PayPal on top of the blockchain defeats the purpose of using a cryptocurrency in the very first place.

Trusted Addresses with Multi-sig

Multi-signature Bitcoin addresses are powerful contraptions that can be used to find a fresh balance of power inbetween a company storing bitcoins and that company’s customers. When using a wallet such as GreenAddress.it, there are actually two signatures that are required to finish a Bitcoin transaction. The user must very first initiate the sending of funds with their private key, and GreenAddress will then also sign off on the transaction after checking for any kind of suspicious activity. Not only is this an enhancement in the security department, but it also permits merchants to trust zero-confirmation transactions, as long as they also trust GreenAddress as a company.

Due to the fact that GreenAddress has to sign off on every transaction, any user who dreamed to accomplish a double-spend would also need to have GreenAddress as an accomplice in the fraud. A time sensitive lock is also added to the user’s wallet permits them to use their funds without a signature from GreenAddress after a certain period of time, which means the wallet provider could never prevent a user from using their own bitcoins.

Open Transactions and Federated Servers

One last solution when it comes to enhancing the security of instant Bitcoin transactions is Open Transactions. With this option, bitcoins are stored on federated servers. This means that, much like Coinbase, transactions can be made off-blockchain without having to wait for anything to confirm every ten minutes. The main advantages of the Open Transactions model over Coinbase are that the servers storing the funds can’t forge receipts and there is not one central point of failure. Voting pools also suggest an improvement over the more traditional option of having one entity store your coins. While a system of federated servers should not be considered as secure as a blockchain, it could be the flawless balance of security and convenience that many Bitcoin-related companies have been searching for over the past few years.

Related video:

What is the simplest implementation of the blockchain?

implementing a blockchain

Blockchains are one of the most significant technologies to emerge in latest years, with many experts believing they will switch our world in the next two decades as much as the internet has over the last two.

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

Albeit it is early in its development, firms pursuing blockchain technology include IBM , Microsoft , Walmart , JPMorgan Pursue, Nasdaq , Foxconn, Visa, and shipping giant Maersk . Venture capitalists have so far poured $1.Five billion into the space, with storied firms such as Andreessen Horowitz, Kleiner Perkins Caufield and Byers, and Khosla Ventures making bets on startups.

The applications for blockchain technology seem endless. While the very first demonstrable ones are financial — international payments, remittances, complicated financial products — it can also solve problems and create fresh opportunities in healthcare, defense, supply chain management, luxury goods, government, and other industries. In more advanced stages, the technology could give rise to what Gartner calls "the programmable economy," powered by entirely fresh business models that eliminate all kinds of middlemen, machine networks in which devices engage in economic activity, and "brainy assets" in which some form of property such as shares in a company can be traded according to programmable or artificial intelligence-based rules rather than the control of a centralized entity.

Not every blockchain works the same way. For example, they can differ in their consensus mechanisms, which are the rules by which the technology will update the ledger. But broadly, a blockchain is a ledger on which fresh transactions are recorded in blocks, with each block identified by a cryptographic hash of that data. The same hash will always result from that data, but it is unlikely to re-create the data from the hash. Similarly, if even the smallest detail of that transaction data is switched, it will create a frantically different hash, and since the hash of each block is included as a data point in the next block, subsequent blocks would also end up with different hashes. This is what makes the ledger tamper-proof. Eventually, security also comes from the fact that numerous computers called knots store the blockchain, and so to switch the ledger, one would need to build up control of at least fifty percent of the computing power in order to switch the record — a difficult feat especially for a public blockchain such as bitcoin's.

A blockchain in two hundred lines of code

The basic concept of blockchain is fairly elementary: a distributed database that maintains a continuously growing list of ordered records. However, it is effortless to get mixed up as usually when we talk about blockchains we also talk about the problems we are attempting to solve with them. This is the case in the popular blockchain-based projects such as Bitcoin and Ethereum . The term “blockchain” is usually strongly tied to concepts like transactions , brainy contracts or cryptocurrencies .

The very first logical step is to determine the block structure. To keep things as ordinary as possible we include only the most necessary: index, timestamp, data, hash and previous hash.

constructor(index, previousHash, timestamp, data, hash)

What is the difference inbetween an exchange (e

blockchain vs coinbase

Your ETH & tokens are on the blockchain, regardless of what service you use to access them. When you stir them, you are sending them from one address on the blockchain to another. These are simply lines of code. Your wallet file, the user interface you interact with, the private key—these do not have funds in them. The private key gives you the capability to prove ownership over coins that are on the blockchain.

If you use a client-side device like MyEtherWallet or Mist, Metamask, Exodus, or Jaxx, then you have the private key & you control your funds and your key. You do not rely on Coinbase or Gemini sending your funds from their account to yours.

The upside is that you, and only you, control your keys. An exchange getting hacked won’t affect you. The downside is that you, and only you, control your keys. No one else has them, nor can recover them, should you lose them.

If you do lose your private key or wallet file or password, you cannot prove ownership of an account and therefore you cannot ever send your coins again.

If you use an exchange like Coinbase, Gemini, Kraken, Polonix, Bittrex, then you have any account with that company, and they hold your ETH and your keys for you. They have their own account on the blockchain with all their and their customers’ funds in it. Then you have a username / password with them, on their servers, and they keep track of how much ETH they “owe” you.

This permits you to have the more traditional username / password situation and do things like reset your password if you leave behind it, switch your password if your password is compromised, and turn on 2FA. However, it also means that if the exchange loses ETH, it’s your ETH that is lost.

If you choose to budge from an exchange to a wallet where you control your keys, you need to make sure that you have numerous backups, stored in separate locations, of your private key + password. This will prevent loss in case your computer crashes or your house burns down or anything else.

You also need to ensure you keep these keys securely. This means:

  • Don’t inject it on random websites
  • Always ensure you are on the correct site or downloading from the legitimate repo / website.
  • Don’t email your key, send it to anyone or post it online
  • Don’t save it to cloud storage
  • Don’t have Team Viewer or other remote access software on your computer

If this seems very terrific, we recommend purchasing a Ledger or TREZOR hardware wallet. These help keep your keys safe and stored in an “offline” device, rather than on your computer. In this case, you don’t have to worry about files or strings of characters; instead you just connect your hardware wallet to your computer.

Internal note: Also on StackExchange here—edits should be made in both locations

Related video:

Wallet Review, Bitcoin Web Wallet, Bitcoin Millionaire

Blockchain.info Wallet Review

Blockchain.info is a free Bitcoin web wallet.

One of the most popular Bitcoin wallets is the official web wallet of Blockchain.info. It’s one of the most widely-used wallets due to its ease of signing up, web access and mobile access , a few factors that will appeal greatly to fresh users of Bitcoin. This said, it may not be the ultimate choice for experienced users who want total control of their own Bitcoins and security.

Because of its direct web access and its availability as a mobile app, Blockchain.info’s wallet is very likely one of the more convenient methods of accessing and spending your Bitcoins. As long as you have your wallet ID, you can inject it via a web browser connected to the Internet to access your funds. That does mean you have to store your wallet ID somewhere on your desktop or mobile, however, albeit the use of browser caches can help you get past this.

Some mobile users also face a rather annoying problem of not being able to copy and paste Bitcoin addresses within the mobile app. So unless you have photographic memory, the plain act of sending someone Bitcoins using the Blockchain.info app is going to be a agony in the crypto-ass.

In the past, however, high traffic to the website has caused overloading and server issues, leading to users being incapable to access their wallets for substantial periods of time. Lately, spectacle seems to be improving but if you’re a user, then you’ll always have to contend with server spectacles from their side. This means that you do risk not being able to use your Bitcoins on request.

Security

Blockchain.info is one of the oldest companies to suggest a free wallet solution and maintains a high level of trust within the Bitcoin community. Because your wallet is stored online on their servers (albeit you still control your backup phrase for recovery), this does mean that users have to trust Blockchain.info so this hybrid solution may not be your long-term wallet options if you want to control all your own information and privacy (including data on your transactions).

If you’re keen on using Blockchain.info, then do recall to make utter use of enhanced security features suggested from its Security Center (accessible once logged in). When creating your wallet, you will already be asked to verify your email address, which is used in the login process. You’ll also be asked to create a 12-word backup phrase which you must keep securely in the event you need to recover your wallet. You can use an IP filter to also block access from TOR-linked IP addresses commonly used by would-be intruders.

It then permits you to add two extra layers of security on top of that (very recommended!). The very first is wo-factor authentication (2FA) for which you’ll require a mobile phone and active number which you own. If you use the mobile app, you can set a 4-digit pin code which will be prompted every time the app is accessed.

Wallet Review, Bitcoin Web Wallet, Bitcoin Millionaire

Blockchain.info Wallet Review

Blockchain.info is a free Bitcoin web wallet.

One of the most popular Bitcoin wallets is the official web wallet of Blockchain.info. It’s one of the most widely-used wallets due to its ease of signing up, web access and mobile access , a few factors that will appeal greatly to fresh users of Bitcoin. This said, it may not be the ultimate choice for experienced users who want utter control of their own Bitcoins and security.

Because of its direct web access and its availability as a mobile app, Blockchain.info’s wallet is very likely one of the more convenient methods of accessing and spending your Bitcoins. As long as you have your wallet ID, you can inject it via a web browser connected to the Internet to access your funds. That does mean you have to store your wallet ID somewhere on your desktop or mobile, however, albeit the use of browser caches can help you get past this.

Some mobile users also face a rather annoying problem of not being able to copy and paste Bitcoin addresses within the mobile app. So unless you have photographic memory, the elementary act of sending someone Bitcoins using the Blockchain.info app is going to be a ache in the crypto-ass.

In the past, however, high traffic to the website has caused overloading and server issues, leading to users being incapable to access their wallets for substantial periods of time. Lately, spectacle seems to be improving but if you’re a user, then you’ll always have to contend with server spectacles from their side. This means that you do risk not being able to use your Bitcoins on request.

Security

Blockchain.info is one of the oldest companies to suggest a free wallet solution and maintains a high level of trust within the Bitcoin community. Because your wallet is stored online on their servers (albeit you still control your backup phrase for recovery), this does mean that users have to trust Blockchain.info so this hybrid solution may not be your long-term wallet options if you want to control all your own information and privacy (including data on your transactions).

If you’re keen on using Blockchain.info, then do reminisce to make utter use of enhanced security features suggested from its Security Center (accessible once logged in). When creating your wallet, you will already be asked to verify your email address, which is used in the login process. You’ll also be asked to create a 12-word backup phrase which you must keep securely in the event you need to recover your wallet. You can use an IP filter to also block access from TOR-linked IP addresses commonly used by would-be intruders.

It then permits you to add two extra layers of security on top of that (very recommended!). The very first is wo-factor authentication (2FA) for which you’ll require a mobile phone and active number which you own. If you use the mobile app, you can set a 4-digit pin code which will be prompted every time the app is accessed.

Related video:

The World Economic Forum Might Not Be Ready to Lead a Blockchain Revolution

blockchain revolution

The research phase of the World Economic Forum’s work with blockchain has only just begun, and already its managing director is beginning to explore a more hands-on treatment.

So far, the international non-profit comprised of the leaders of more than a thousand of the largest companies in the world, has focused largely on establishing a blockchain working group, last week publishing its very first in-depth white paper on how to maximize the influence of the technology.

But following publication of the paper, WEF managing director Richard Samans acknowledged how much more many of his members still have to learn, in spite of projects being initiated on several other fronts.

Samans told CoinDesk:

“Most of this leader-level community is not very well versed in blockchain. In fact, they may know the term, but they don’t know much about where the technology is right now and how it may be applied in multi-faceted ways via society.”

Ostensibly, the white paper – written by Blockchain Research Institute co-founders, Don and Alex Tapscott – was designed to lay the framework for how existing consortia, private companies and governments could work together to maximize the potential benefits of a collective, trustworthy ledger of transactions.

Still, Samans said that even some of the most senior-level executives among the WEF membership still need to learn more about how such a technology could be employed in ways that benefit society at large.

“There’s a 2nd potential benefit of issuing this white paper, for this particular community,” said Samans. “And that is to raise awareness of blockchain as as reality already, and to give advanced notice that this is worth some real thinking among all sorts of social actors.”

Blockchain match

Key to that learning curve are two main groups within the World Economic Forum.

Very first is the freshly launched Global Future Council on the Future of Blockchain, with membership including Hyperledger executive director Brian Behlendorf, R3 chief technology officer Richard Gendal Brown and Everledger CEO Leanne Kemp.

2nd is the Center for the Fourth Industrial Revolution, launched last October to pursue fresh ways to leverage the mutli-stakeholder treatment across industries. With fucking partners that include Salesforce, Kaiser Permanente, Palantir Technologies and SAP, the center has been studying fresh ways to implement AI, the civilian use of drones, distributed ledger technology and more.

According to Samans, blockchain itself is ideally suited for the multi-stakeholder principals being followed within the center, which he said “could improve the prospects for the technology’s development.”

Whether that actually ever happens, however, is contingent on how quickly the members can catch up on the technology, and whether blockchain developers even want such centralizing oversight, regardless of its intentions.

“We are also a fertile platform for further catalyzing partnerships and in this case, there are a number of potentially fairly interesting use cases of blockchain, which are indeed in the early stages of being explored, whether they have to do with development or the way the economy operates.”

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Everledger.

World Economic Forum photo via Flickr

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a stringent set of editorial policies. Interested in suggesting your expertise or insights to our reporting? Contact us at [email protected] .

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The Network Effect at Blockchain 360: IoT Security Summit 2016, IoT Institute

The Network Effect at Blockchain 360: IoT Security Summit 2016

Blockchain three hundred sixty — the opening day of the IoT Security Summit two thousand sixteen in Boston — was a well-attended event with a broad cross section of participants. Numerous companies in the space gave presentations explaining how Blockchain addresses the problem of trust in a decentralized situation by using ledgers containing immutable statements that are verified by numerous knots, so that there’s no reliance on a centralized assets for confirmation.

So far, the primary initial use case for blockchain is for alternative currencies and elementary, speedy financial settlements. Primarily wary of the technology, banks and financial institutions are now embracing the chance to reduce the settlement time of financial and stock securities from three days to potentially minutes.

A theme that emerged was the power of the network effect in the blockchain world. The value of Bitcoin, as with any currency, is its acceptability — how many places you can use it and with how many people. Consequently, the more people that embrace blockchain, the greater its value. This is similar to Metcalfe’s law in the communications space, very first used to describe the utility of fax machines to people and businesses. The very first fax machine had no value because it couldn’t communicate with anything, and the same with the very first mobile phone, but directly you have numerous possible connections with value that increases at an exponential rate.

This workshop exposed the meaty potential chance of what lies beyond financial applications. Anytime a machine interacts with a third-party, you could use blockchain as the verification process of the device as a trusted party, as well as the validity of the data it’s sharing.

Thomas France, co-founder of Ledger, a French-American startup, spoke about how they are creating hardware oracles that attest the physical device state to the digital world, primarily used for hardware Bitcoin wallets. An oracle is a trusted entity that sends confirmation to the blockchain. A hardware oracle is the combination of a physical sensor that analyzes the data and software that transmits the digital state information to the blockchain, either for validation or as validation. Ledger has created an operating system that has a very petite footprint — inbetween 4kb and 120kb with exposed APIs. The company plans to license the technology to OEMs and chip vendors.

Use cases are clever grid utility companies that need to attest to certifiable energy production, and issue tokens on the blockchain that prove that production. This can also be used to ensure that tens unit was consumed. Ledger is primarily based in France where a number of the clever meter and SIM/security companies operate. They anticipate that the proof of concepts will be flipped out over the next eighteen months, with production occurring in 2018.

Another aspect of blockchain is the concept of brainy contracts which are neither clever nor contracts. It is validated program logic that runs on the distributed ledger, with procedures affixed that are triggered when an authentication is received. This permits for a value chain process to be built across industries that don’t trust one another at the ecosystem level. In its simplest form, it means that when goods are shipped and received, payment can be released, and this avoids redundancy and reconciliation of databases across multinational supply chains.

For IoT, a practical use of these technologies is for devices to measure events, and send data to the blockchain that would trigger wise contracts. For example, an IoT thermostat can test temperature, and attest to the validity of the reading and post proof on the blockchain for the life of the asset. An example of this application is when a container with wine, traveling from one country to another, can be validated to have not exceeded temperature boundaries for the entire journey.

This is similar to a project that Kouvola is working on, using Blockchain and IBM’s Watson IoT platform to monitor and track containers. Every signal sent from a tracking sensor on the container is stored on the blockchain using Hyperledger, so that you can provide incontrovertible evidence of the state of the contents, its location and variations via its journey, from point A to point B.

The clear message I walked away with was that the growth of Blockchain and IoT will be intertwined, and combinatorial in terms of the network influence they have. This is particularly true for the telecom industry and the markets it serves.

A quote that was collective at the workshop was something that infrastructure theorist Vinay Gupta said when talking about Ethereum, the next-generation Blockchain platform: “Data is the network and the network is the data.” With all these connected validated devices networking and creating value, this should be manna to mobile operators’ ears!

The Network Effect at Blockchain 360: IoT Security Summit 2016, IoT Institute

The Network Effect at Blockchain 360: IoT Security Summit 2016

Blockchain three hundred sixty — the opening day of the IoT Security Summit two thousand sixteen in Boston — was a well-attended event with a broad cross section of participants. Numerous companies in the space gave presentations explaining how Blockchain addresses the problem of trust in a decentralized situation by using ledgers containing immutable statements that are verified by numerous knots, so that there’s no reliance on a centralized assets for confirmation.

So far, the primary initial use case for blockchain is for alternative currencies and plain, speedy financial settlements. Originally wary of the technology, banks and financial institutions are now embracing the chance to reduce the settlement time of financial and stock securities from three days to potentially minutes.

A theme that emerged was the power of the network effect in the blockchain world. The value of Bitcoin, as with any currency, is its acceptability — how many places you can use it and with how many people. Consequently, the more people that embrace blockchain, the greater its value. This is similar to Metcalfe’s law in the communications space, very first used to describe the utility of fax machines to people and businesses. The very first fax machine had no value because it couldn’t communicate with anything, and the same with the very first mobile phone, but directly you have numerous possible connections with value that increases at an exponential rate.

This workshop exposed the large potential chance of what lies beyond financial applications. Anytime a machine interacts with a third-party, you could use blockchain as the verification process of the device as a trusted party, as well as the validity of the data it’s sharing.

Thomas France, co-founder of Ledger, a French-American startup, spoke about how they are creating hardware oracles that attest the physical device state to the digital world, primarily used for hardware Bitcoin wallets. An oracle is a trusted entity that sends confirmation to the blockchain. A hardware oracle is the combination of a physical sensor that analyzes the data and software that transmits the digital state information to the blockchain, either for validation or as validation. Ledger has created an operating system that has a very petite footprint — inbetween 4kb and 120kb with exposed APIs. The company plans to license the technology to OEMs and chip vendors.

Use cases are wise grid utility companies that need to attest to certifiable energy production, and issue tokens on the blockchain that prove that production. This can also be used to ensure that violet wand was consumed. Ledger is primarily based in France where a number of the brainy meter and SIM/security companies operate. They anticipate that the proof of concepts will be flipped out over the next eighteen months, with production occurring in 2018.

Another aspect of blockchain is the concept of clever contracts which are neither clever nor contracts. It is validated program logic that runs on the distributed ledger, with procedures affixed that are triggered when an authentication is received. This permits for a value chain process to be built across industries that don’t trust one another at the ecosystem level. In its simplest form, it means that when goods are shipped and received, payment can be released, and this avoids redundancy and reconciliation of databases across multinational supply chains.

For IoT, a practical use of these technologies is for devices to measure events, and send data to the blockchain that would trigger brainy contracts. For example, an IoT thermostat can test temperature, and attest to the validity of the reading and post proof on the blockchain for the life of the asset. An example of this application is when a container with wine, traveling from one country to another, can be validated to have not exceeded temperature thresholds for the entire journey.

This is similar to a project that Kouvola is working on, using Blockchain and IBM’s Watson IoT platform to monitor and track containers. Every signal sent from a tracking sensor on the container is stored on the blockchain using Hyperledger, so that you can provide incontestable evidence of the state of the contents, its location and variations across its journey, from point A to point B.

The clear message I walked away with was that the growth of Blockchain and IoT will be intertwined, and combinatorial in terms of the network influence they have. This is particularly true for the telecom industry and the markets it serves.

A quote that was collective at the workshop was something that infrastructure theorist Vinay Gupta said when talking about Ethereum, the next-generation Blockchain platform: “Data is the network and the network is the data.” With all these connected validated devices networking and creating value, this should be manna to mobile operators’ ears!

Related video:

The current state of blockchain regulation, Mobile Payments Today

The current state of blockchain regulation

With fresh technologies, it takes a while for regulation to catch up. Blockchain technology is no exception. While we are leisurely beginning to see standards emerge — for example, Fresh York state’s fresh BitLicense regulations — the reputation of blockchain is still marred by the criminal aspects of bitcoin.

Bitcoin itself recently took a hit when the SEC ruled against the Winklevoss twins’ proposal for an exchange-traded fund for bitcoin. The SEC voiced concern about the capability of powerful, unregulated Chinese exchanges to manipulate the price of bitcoin. This underscores a key aspect of virtual currency regulation: It is still in its infancy.

“The current regulatory landscape when talking about [distributed ledger technologies] is at the same time immature and complicated, and it depends on what component of the DLTs we are talking about: cryptocurrencies; blockchains; collective ledgers; clever contracts; etc.,” Javier Sebastian Cermeno said in a report by BBVA Research. “The regulatory treatment of each of these components is different, albeit [the] lack of specific regulation is a common factor.”

Presently, countries such as Brazil, Canada, the United States and many European nations at least permit bitcoin technologies. Others such as China and India have a less friendly relationship with bitcoin, and some — including Russia — are outright hostile, according to the BBVA report.

Even among governments that do permit trading in bitcoin and other virtual currencies, regulation can be inconsistent. For example, the European Parliament believes it should take a hands-off treatment to virtual currency regulation and should simply analyze it. However, the European Banking Authority, a regulator agency of the EU, recommends that banks stay away from virtual currency.

In the U.S., the Financial Crimes Enforcement Network was the very first government agency to release a statement on virtual currency. FinCEN was followed by the IRS, according to a blog by Liz Prehn, a tax attorney for Moskowitz LLP. The IRS regulations for taxation, however, leave a number of unanswered questions. For example, how should bitcoin mining be treated for tax purposes?

“Is virtual currency that is held by a merchant considered a capital or an ordinary asset?” Prehn wrote. Is it a “commodity” subject to mark-to-market accounting?”

Other questions relate to how virtual currency should be reported and how to determine the exchange rate of virtual currency for tax purposes.

While the IRS views virtual currency as property, other regulatory agencies see it differently. FinCEN treats it as money, whereas the Commodity Futures Trading Commission treats it as a commodity. This has led to difficulties in court cases related to bitcoin in which judges have had to determine exactly how to treat virtual currency, according to the BBVA report.

For example, in 2016, Judge Teresa Pooler of the 11th Judicial Circuit Court of Florida ruled on the case of a man charged with helping two undercover agents launder money with bitcoin. Judge Pooler threw out the case telling that bitcoin is not money, thus the defendant could not be charged with money laundering.

From a global perspective, regulatory initiatives around the broad field of distributed ledger technologies are in their initial stages, Cermeno said.

Most regulatory bods now have working groups and task coerces in place analyzing virtual currencies and DLTs, however, there still is relatively little progress toward enforceable regulation.

In the case of blockchain technology regulation, Cermeno asserts that it doesn’t indeed exist yet. But users of the technology will come up against existing regulations for activities — such as clever contracts — as they migrate to blockchain technology.

“Any wise contract defined on the blockchain will have to serve at least with the regulation on contracts applicable on the correspondent jurisdiction, as exposed in the commercial and trade law,” Cermeno said. “Then, depending on what kinds of financial services are being suggested on the blockchain (payments, lending, investment, etc.), regulation on these services will have to be applied. For example, KYC and AML regulation, capital markets regulation, lending regulation, and so on.”

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The Buddhist Vacuum Cleaner and the Blockchain – The Telling Phase – Of Things Immaterial

The Buddhist Vacuum Cleaner and the Blockchain – The Telling Phase

Waiting for long-heralded technologies to land can be like waiting for the punchline of an overdrawn joke. Is it indeed going to be a shift in understanding, did the teller make the ending too demonstrable or, were you robbed while waiting for the tale to finish?

I love a switch framework as much as anyone – hype cycles, adoption forms, horizons – but joke telling is just as useful. The three phases of many jokes are Framing, Telling and the Punchline. The punchline providing us a shift in understanding. Let me explain that with a choose your own technology / joke example

Blockchain, Augmented Reality or the Buddhist Vacuum Cleaner?

Framing – Did you hear the one about the next technological revolution? (a) the Blockchain (b) Augmented Reality or (c) the buddhist vacuum cleaner

Telling – (a) A technologist and cryptographer designs a see-through, globally distributed transaction ledger facilitating indisputable transaction exchanges. (b) Technology advances enough to permit real-time projection of computer generated material onto our visual field. (c) A monk attempts to clean their cell but can’t reach the corners.

Punchline (a) It substitutes money as we know it (and disintermediates / demolishes the traditional banking system) (b) It brings data to life (and adds another layer of distraction and abstraction) (c) It has no attachments

The Shift (a) Do we need currency at all when we can use a ledger of tokens to connect to things in the real world (Gold, Land, Goods) (b) We’ve always had a reality abstraction. We began with accounting records using marks on clay. This is just swifter (c) Does James Dyson clap with one palm?

The Telling Phase

It’s in the Telling phase that is interesting. We want it to be arousing or intriguing but not too long and not to signal the punchline. In technology, the consumer electronics industry (and the media it supports) keeps attempting to give the punchline away. It keeps attempting to make the audience invest in the telling position by asserting it wields the punchline and it is worth waiting for.

Reality however makes its own punchlines. 3D Printing for example turned out to be a powerless joke on the consumer audience but comedy gold for manufacturing and engineering. Mobile communications wasn’t about better one-to-one communications but one-to-many-many-more.

Why is this interesting?

What will the punchlines be for blockchain and augmented reality? They are yet to be exposed. During all the attempts to tell the same joke the potential shift direction is exposed in background reality. In the time it takes to land the main punchline, the more we have time to turn a surprising shift (or ‘disruption’ if you like) into a useful progression. The Telling phase then is a buffer. We observe the iterations of the joke being told but, wait for the interesting punchline and still surprising shift.

Interested in more thoughts like this?

If you found this interesting and worth exploration with your organisation let’s talk about how we might work together. To find out how to get in touch go here

Interested in what I do but the timing is not right yet to do something together? I regularly publish some of the insights I use, and thoughts that I have in a briefing. You can sign up for that below

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