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Tag: blockchain

What Is Bitcoin? Is It Legal Money? What Could Happen To Bitcoins In 2017?

What Is Bitcoin? Is It Legal Money? What Could Happen To Bitcoins In 2017?

  

Bitcoins, a form of digital currency

that operates on the principles of cryptography, has lately come under the scanner of the authorities throughout the world. So, it’s become necessary to know what are Bitcoins, how it works, the legal status of Bitcoins as well as what holds in the future of Bitcoins. 

In the year 1976, F.A Hayek, in his book “The Denationalisation of Money,” propagated the establishment of competitively issued private money. In the mid-70s, what seemed like a farfetched idea was conceived by yet another Economist in the year 1999. Milton Friedman, an American economist who received the 1976 Nobel Memorial Prize in Economic Sciences, predicted of time where internet, (still in a nascent stage then) would help abolish the role of a government and evolve a currency free from the shackles of the government control. Less than ten years later the prophecy came true when Satoshi Nakamoto, a Japanese, invented a form of cryptocurrency called “Bitcoin.” The origin of Bitcoins can be traced to the aftermath of the global recession and money crisis of 2008 that shook the whole world economy.

What is bitcoin? How does it work?

In the simplest form, Bitcoins can be described as a “Peer to Peer Electronic cash system.” Bitcoins can be used as a method of payment for numerous goods and services and for simple transactions like purchasing vouchers, paying bills, etc. In different jurisdictions, Bitcoins are treated as a property, currency, virtual asset, good, security or commodity for the purpose of trading on a stock exchange or commodity exchange.

Essentially Bitcoin is a cryptocurrency, i.e., it operates on the principles of cryptography to manage the creation of Bitcoins and securing the transactions. Cryptocurrencies are managed by private parties, without the need for a government authority to monitor the currency system. The currency has been designed in a way that the number of total units of Bitcoins in circulation will always be limited. Going by the pace at which Bitcoins are being minted, the last unit will be mined around the year 2140.

The cryptocurrencies essentially work on the Blockchain system. A Blockchain is a public ledger of Bitcoins that is designed to record all the transactions. The chronological order of Blockchain is enforced with cryptography and each new ledger update creates newly minted Bitcoins. This is designed in a way that Bitcoin wallets can calculate their total balance and new transactions can be verified. The integrity and the chronological order of the block chain are enforced with cryptography.

Bitcoin Working

The buyer and seller can enter into transactions by using their Bitcoin wallets that are secured by a secret piece of data called, a “Private key.” The key is used to authorize the transactions by the owner of the wallet, and cannot be normally tempered by anyone, once it is issued.  The transactions are performed by adding the Bitcoin wallets on an exchange, acting as a facilitator for sale and purchase of Bitcoins. All transactions are displayed between the users and usually begin to be confirmed by the network through a process called “Mining.” It is essentially the process of creating new Bitcoins out of the total Bitcoins that are designed to be “Mined” using computers. The transactions transfer the value between the users and get recorded in the Blockchain, ensuring that each transaction is valid.

Is Bitcoin legal money?

The legality of Bitcoins is controversial, while some jurisdictions have express laws and regulations to deal with Bitcoins, others still fall in gray areas. As per a recent bill in Japan, Bitcoins and other virtual currencies have been given legal recognition and are accepted as a mode of payment. While in China, trading in Bitcoins come under the regulatory restrictions imposed by People’s Bank of China.

In the U.S.A, different states have adopted varying approaches to Bitcoins. Recently a U.S Magistrate in the state of New York ruled that Bitcoins are not money, while a contradictory stance was taken by a judge in Manhattan, who ruled that bitcoins are acceptable means of payment. The Internal Revenue Service in the United States defines bitcoin as property rather than currency for tax purposes. The U.S. Treasury, by contrast, classifies bitcoin as a decentralized virtual currency.

In Russia, reportedly, Bitcoins may soon be regulated in a bid to tackle money laundering, though, in the past, Russia has expressed its displeasure with Bitcoins and other cryptocurrencies. In India, as of now, no regulations have been framed by either Reserve Bank of India or Securities and Exchange Board of India, the two contenders, for the purpose of drafting regulations pertaining to Bitcoins and acting as a watchdog.

In India, who ultimately acts as a regulatory authority can only be decided based on whether the government decides to treat Bitcoins as “Currency” or “Security/Commodity.” As per current Indian laws, “Currency” can only be issued by the government but the residuary powers in this regard lie with the Reserve Bank of India which can notify “Bitcoins” as currency.  After the demonetization drive in India, the demand for Bitcoin has more than doubled in less than two months. The Indian government has reportedly set up an inter-disciplinary committee to regulate the Bitcoins amidst the apprehensions that the black money hoarders may have invested into Bitcoins.

Bitcoin trends in 2017

Bitcoins are extremely volatile in nature. While the future trends for Bitcoins can’t be predicted with utmost certainty, as per a report published on Forbes, the market is set to show strong waves in the favor of cryptocurrencies, as predicted by a crypto market intelligence startup. As per the latest position, The 24-hour average rate of exchange across USD Bitcoin markets is US$1184.87, the 7-day average is US$1204.85, and the 30-day average is US$1080.26 confirming only the volatility of Bitcoins.

There are possibilities that some countries may introduce an Exchange Traded Fund (ETF) to make Bitcoin Trading easier and accessible. While a similar application to create an ETF has been rejected by The US Securities and Exchange Commission (SEC), the chances of other countries adopting it are not bleak. Currently, sale and purchase of Bitcoins is a multi-step process. Creating an ETF would make it possible for the investors to buy Bitcoins through the stock market.

Further, In the future Blockchains, the underlying technology to Bitcoins may bring revolution in the music industry.  Cryptography could transform the music industry by using Blockchain ledgers. As per reports, an attempt is being made to bring music distribution under the cryptography. This can be done by adding the music to blockchain and letting the users distribute the music by paying a sum. This can also bring down music piracy.

To sum up the discussion, it can be said that while Bitcoins may not replace the “Fiat Currency” anytime soon, but there has been a phenomenal growth in the acceptance of cryptocurrencies around the world. While the investors may still be reluctant to invest in Bitcoins, given the high risks associated with it, the demand for Bitcoins has grown manifold. In the end, it could be argued that a good legal and regulatory framework for Bitcoins would help the investors decide the viability of Bitcoins in the long run.

Chuck Reynolds
Contributor

Alan Zibluk Markethive Founding Member

Smart Contracts: Separating Ethereum from Bitcoin

Smart Contracts:
Separating Ethereum from Bitcoin

  

One question that a substantial portion of people asked

when Ethereum was launched was “Why to develop Ethereum when we already had Bitcoin for the transfer of payments?” Well, Blockchain is a powerful technology and it is true that we haven’t fully utilized it to its potential. Bitcoin only makes use of one of the many possible applications of the Blockchain technology i.e. peer-to-peer transfer of funds. Ethereum is a platform based on the Blockchain technology used for developing decentralized applications. It has a few benefits over Bitcoin such as the feature of coding Smart Contracts and the Ethereum Virtual Machine.

What is a Smart Contract?

Simply put, Smart Contracts are a digitized version of a traditional contract. They are computer programs which run on the Blockchain database and can be programmed to self-execute when the conditions written in their source code are met. Smart Contracts are trusted by the users as once programmed, the terms of the contract cannot be changed thus making the contract immutable. Smart Contracts are coded using the language ‘Solidity’ and offer numerous advantages over traditional contracts:

  • There is no dependence on a third party for the enforcement of the contract. The elimination of the middleman considerably reduces the total amount of money spent on the contract.

  • Eliminating third-party vendors also mean that the entire process of validation and enforcement of the contract becomes speedy as the users are directly transacting with each other.

  • Since the terms of the contract cannot be changed, the users are at a lesser risk of being cheated. Smart contracts are free from all kinds of human intervention.

  • Smart contracts are not prone to failures such as power cuts, node failures etc. There is no risk of misplacing or losing the contract as the contract is saved on a distributed ledger. What this means is that each device connected to the network has a copy of the contract and the data stays on the network forever.

How does a Smart Contract work?

Developers work on writing the code for Smart Contracts. The Smart Contracts can be used for the transaction and(or) exchange of anything between two or more parties. The code contains some conditions that will trigger the contract to execute itself. For example, a Smart Contract relating to a rent agreement for an apartment would only get triggered when the owner receives the rent and would send the security key for the apartment to the tenant. This contract could be programmed to ensure regular payments of rent and could be reinitiated every month.

Once the coding is done, the Smart Contracts are uploaded to the Blockchain network i.e. they are sent to all the devices connected to the network. Relating this to another Blockchain application — Bitcoin — the upload is like how a network update regarding a Bitcoin transaction would be uploaded onto the Blockchain. Once the data is uploaded onto all the devices, the users come to an individual agreement with the results of the execution of the program code. After the users have reached an agreement, the database is updated to record the execution of the contract and to monitor the terms of the contract to check for compliance. Here, there is no possibility of the contract being manipulated by a single party as control over the execution of the Smart Contract does not lie in the hands of any single party anymore.

Potential use-cases for Smart Contracts

Smart contracts are already becoming pivotal for many Blockchain applications and will most likely become one of the most important pillars of the Blockchain technology. We are already seeing Smart Contracts being used in fintech and non-fintech domains with new use-cases coming up daily. Some fields where Smart Contracts can be successfully used include:

Supply Chain Management
Supply chains are vulnerable to paper-based systems, where forms pass through several channels for approval thus increasing exposure to fraud, theft and other setbacks. Blockchain annuals such setbacks by providing a safe and accessible digital version to each party participating in the chain and automates the process of payment.

Governance
Smart Contracts could be used to provide a more secure and flexible ecosystem to the voters where voters need not come to the polling booths but can transfer their votes from anywhere since they’re already participating in a contract initiated by the governing authority. All it would need for the completion of the contract — an internet connection.

Real Estate
Using Smart Contracts, many hassles surrounding payments to the broker, advertising firms, and similar costs could be nullified as the Blockchain ledger would help us cut costs and the tenant and the owner would be able to directly transact with one another.

Protecting Intellectual Property Rights
IPR can be enforced using Smart Contracts, which allow the users to track ownership of any file uploaded onto the network. Content creators can participate in Smart Contracts with other users, allowing the creators to get due credit for their content and be compensated easily since there is no need for any third-party intermediary.

What lies in the future for Smart Contracts?

The Blockchain technology is being integrated with multiple aspects of an average user’s life. Also, Smart Contracts are becoming an important pillar of Blockchain. Both Blockchain and Smart Contracts have use cases that have not been fully explored but constant research is being done on the same, with many big companies investing heavily in the research and development of these technologies.

Chuck Reynolds
Contributor

Alan Zibluk Markethive Founding Member

Blockchain in Energy Sector: IOTA to Offer Decentralization, Scalability, No Transaction Fees

Blockchain in Energy Sector: IOTA to Offer Decentralization, Scalability, No Transaction Fees

  

With motor vehicles becoming an ever increasing luxury around the world,

pollution levels are increasing but the Blockchain could help to reduce the transportation industry’s contribution to global warming that promises a cleaner and energy efficient future. In an article written in December by Carsten Stöcker, Senior Manager in the Machine Economy Innovation Lighthouse Lead at German energy firm, Innogy SE and Thomas Birr, Senior Vice-President of Innovation & Business Transformation at Innogy SE, the future of transport will change through 'Blockchain-enabled secure peer-to-peer (P2P) transactions that eliminate or minimize the need for centralized authorities such as banks or ride-sharing services such as Uber or Lyft.'

Blockchain and energy transactions

Through the Blockchain, trip charges will be deducted from the passenger's Blockchain-enabled digital wallets or charged to their credit card, with payment going straight to the vehicle owner. As noted by Stöcker and Birr, Blockchain-enabled mobility transactions mean that consumers and providers can take part in the transportation system, setting the terms, conditions, and pricing they choose.

"Automotive OEMs want to collaborate with us in order to participate in building a Special Purpose Decentral Platform for Mobility Transactions,” said Stöcker, speaking to Cointelegraph. "We are also now engaging with many owners of EV charging assets around the world in order to bring charging poles to one Blockchain platform." Yet, while the Blockchain can have a significant impact on how energy transactions are conducted, there are issues with it, such as scalability, transaction costs and offline transactions, that limit its effectiveness. The IOTA Tangle is attempting to fix this by addressing many of the shortcomings with today's Blockchain technology by delivering secure, practical and scalable applications.

Transferring value without any fees

The IOTA is a digital currency with the goal of establishing itself as fuel for efficient machine-to-machine and Internet of Things (IoT) transactions. Instead of using a regular Blockchain, the IOTA uses its IOTA Tangle, which validates transactions in a Directed Acyclic Graph structure (DAG). This is a revolutionary new blockless distributed ledger, that is scalable, lightweight and makes it possible to transfer value without any fees. Stöcker, who is also an IOTA Foundation member, which was founded by David Sønstebø, said that instead of achieving consensus through an expensive mechanism, which can lead to centralization, those within the IOTA network are active in the validation of transactions and consensus.

"When a device makes a transaction and broadcasts the transaction to the network, by protocol or 'by default' it has to validate two previous transactions," he said. "So, it's a real peer-to-peer network by machines for machines." He adds that this new concept has immediate advantages: decentralization, scalability and no transaction fees. With all IOTA tokens pre-mined, no mining is required. Not only that, but given the fact that 2779530283277761 IOTA were created, this enables transactions with a little value attached to them. For instance, micro-transactions, which can be beneficial within the energy industry.

Deploying the IOTA in the real world

Of course, in order to deploy the IOTA in the real world, adoption needs to be achieved in a development friendly ecosystem, which is being undertaken in its IOTA Development Roadmap. With the IOTA Tangle designed less rigorously, it means transactions can be made in an offline environment, which copies the IoT, where devices use different networking protocols such as Lemonbeat, Bluetooth LE, LPWAN, or ZigBee. "As such, IOTA is the first permissionless distributed ledger that achieves scalability, making Machine-to-Machine payments for the IoT possible," said Stöcker.

Chuck Reynolds
Contributor

Alan Zibluk Markethive Founding Member

Abu Dhabi Securities Exchange: Blockchain is Most Innovative Technology For Digital Transactions

Abu Dhabi Securities Exchange: Blockchain is Most Innovative Technology For Digital Transactions

   

Abu Dhabi Securities Exchange (ADSM),

a stock exchange in Abu Dhabi with a market cap of $135 bln, considers the Blockchain as the most innovative technology in finance and digital transactions. In 2008, the government of UAE released the Abu Dhabi Economic Vision 2030, a 22-year-long strategy and roadmap for the country’s economic progress. A major component of the agenda drafted and implemented by the UAE government was the development of a sufficient and resilient infrastructure capable of supporting anticipated economic growth. Rashed Al Baloushi, the CEO of ADSM, stated that the development of Blockchain technology is an important part of the company’s vision derived from the Abu Dhabi Economic Vision 2030.

Baloushi stated:

“Blockchain is the most innovative technology in digital transactions. It represents the second generation of the internet and has enabled ADX to join the elites of top 10% of institutions globally who have already taken steps in adopting this technology.”

The global banking and finance industries currently lack an efficient and secure infrastructure for digital payments and transactions. The settlement of cross-bank and cross-border transactions is expensive, slow, opaque and insecure.

Latest development

To meet the expectations of the UAE government and to follow the economic roadmap laid out for the private sector, local banks and financial service providers including ADSM have already begun to look into various technologies such as the Blockchain.

Upon the evaluation and analysis of Blockchain technology, researchers at ADSM perceived a great potential for the technology in the finance industry and particularly in the digital transactions market. Since their initial discovery of the Blockchain, ADSM led the development of several Blockchain projects, including a Blockchain platform for e-voting at an annual information technology exhibition held in Dubai. Maintaining its momentum, ADSM plans to demonstrate the applicability of Blockchain technology in the realm of finance and digital payments in their next projects.

Baloushi reaffirmed that the company will collaborate with emerging startups and innovative developers in the Blockchain industry to ensure that ADSM and the rest of the finance industry adopt a revolutionary technology such as the Blockchain to optimize operations and reduce operating costs.

Strategy

“Abu Dhabi Plan is what inspires us to accomplish our strategic goals. ADX is committed to creating a business environment that is both competitive and flexible. Accordingly, adopting Blockchain technology in our projects comes in alignment with the digital transformation of Abu Dhabi’s government services as we constantly strive to introduce new ways that ease the process of doing business in the Emirate,” said Baloushi. Previously, Cointelegraph reported that Dubai aimed to become the first Blockchain-powered city by 2020, with the help of local authorities and startup incubators such as 1776. With Abu Dhabi joining the Blockchain race, UAE seeks to see a rapid development and growth in its local Blockchain industry.

Chuck Reynolds
Contributor

Alan Zibluk Markethive Founding Member

What is Bitcoin?

What is Bitcoin?

   CryptoCoins

               

Bitcoin is a virtual or digital currency also known as a cryptocurrency

created by the mysterious (and unknown) Satoshi Nakamoto. Bitcoin is like other currencies: it can be used to purchase items locally and electronically. However, bitcoin differs from conventional money in that it is decentralized and fully independent. No institution controls the Bitcoin Network and it is not tied to a country like the US Dollar. The entire network is maintained by individuals and organizations referred to as Bitcoin Miners. Bitcoin miners process and verify bitcoin transactions through a mathematical algorithm based on the cryptographic (hence the name cryptocurrency) hash algorithm SHA256.

Bitcoin is Decentralized

No central authority controls Bitcoin or its network of transactions. A community of Bitcoin miners make up the network, processing the transactions. If any changes are made to Bitcoin by a developer or developers using GitHub, a 51% majority of the miners hashing power must agree upon it. This insures that, in theory, no individual can steal your bitcoins or print (create) more.

How Can One Change Bitcoin and Bitcoin’s code?

Everyone can contribute to and edit the Bitcoin source code since the Bitcoin protocol is open source. The Bitcoin protocol is viewable for all making it easier to spot weaknesses and provide suggestions for improvement. However, if a developer edit the Bitcoin code, that edit has to be accepted by more than 51% or more of the Bitcoin miners that runs the Bitcoin network. Bitcoin can be seen as a democratic currency where the majority always decide what will happen next with the Bitcoin source code.

Bitcoin Wallet and Transactions

                                                                Is Bitcoin Anonymous?

Though each Bitcoin transaction is recorded in a public log called the block chain, names of buyers and sellers are never revealed — only their Bitcoin wallet addresses. Each wallet address is unique and can’t be linked to anyone unless the creator of that specific bitcoin address reveals himself.

1Lst6Ro8r5C7QrxAuoZg1LJAuQtP3W9uV2 is an example of a unique bitcoin address used for receiving and sending bitcoins. To send, receive and create Bitcoin addresses you must have a  Bitcoin wallet . A Bitcoin wallet is a software that’s essentially your bank account for bitcoins. Your wallet can hold as many bitcoins and Bitcoin addresses you’d like, and you can own as many wallets you want. While bitcoin can be anonymous, that doesn’t mean it is. If you purchase your bitcoins on a Bitcoin trading platform or exchange that has your information, the bitcoins you buy can be tied back to you.

Bitcoin is Transparent

Every Bitcoin transaction that has ever happened is stored in detail in the public ledger known as the block chain. By using the block chain, anyone can see how many bitcoins are stored on a particular address, and they can see the deposits and withdrawals to that address, but they will be unable to know who owns the address.

Bitcoin Transactions Can not be Reversed

When you send bitcoins to a Bitcoin address, you can not reverse the transaction. Unlike credit cards where transaction can be disputed or reversed, bitcoins are nonrefundable. Bitcoin can not be replaced either. If your wallet is stored on your hard drive and not in a  “cloud”, you could lose your bitcoins if you are hacked, get a virus or if your computer dies. These lost bitcoins can never be retrieved. That’s why it is so important to take regular backups and implement measures for Bitcoin wallet security. Furthermore, merchants cannot initiate charges on you as they can and do with credit cards. Each transaction must be initiated by the wallet holder, further underlining the advantages of the Bitcoin system.

   Bitcoin is Secure

Proponents of Bitcoin tout its formidable security, and with good reason. In theory, unless 51% of the system is controlled by one party, Bitcoin is virtually unhackable. For instance, in order for someone to change a transaction or double spend a Bitcoin, they would have to obtain majority control of the system and modify every miner in this majority. When there is a disagreement in the block chain, the system overrides the minority with the data agreed upon by the majority.

However, there have been concerns that different mining companies and mining pools should be able to reach 51% of the Bitcoin hashing power and perform a so called 51% attack on the Bitcoin network.

How are Bitcoins Created?

Bitcoins are created through a process known as mining. Mining is the term used by those who contribute to processing transactions. Miners process and secure the network using specialized hardware that “mine” for new bitcoins. As “payment” for their contribution, they are awarded new bitcoins. This is how new bitcoins are generated. New coins are created at a fixed and decreasing rate that is predictable. The number of coins created each year is halved over time until 21 million bitcoins are in circulation. At this point, bitcoin miners will be rewarded by transaction fees.

When a miner has successfully created a new hash, the block is sealed off and added to the block chain. 25 bitcoins are awarded to the miner who discovered the new hash. The number of bitcoins rewarded per block is cut in half every four years. Blocks are solved an approximate rate of 6 per hour.

Why use Bitcoins?

Bitcoins are attractive to a large number of people of an equally large number of reasons. Bitcoins can be anonymous, near instantaneous and offer a level of control over your money like no other traditional currency. There are no banks that can take away your money, and Bitcoins are deflationary in nature, while e.g. USD is inflationary where your money depreciate over time. Bitcoins are also speculative in nature drawing the attention of investors.

Merchants are drawn to Bitcoin because of the low fees. Merchants typically pay 2-3% fees from credit card processors, whereas many types of transactions are free with Bitcoin. Transactions are free if several conditions are met. Any transactions that don’t meet thee requirements are charged 0.1mBTC (0.0001 BTC) per 1,000 bytes. Typical transactions are 500 bytes but do not meet the priority requirement and thus are charged a 0.1mBTC fee regardless how many coins are transferred. You can view the live Bitcoin price here.

How to Obtain Bitcoins

There are several ways to obtain bitcoins. The most common way is to purchase them on a Bitcoin exchange. You can also purchase bitcoins on Ebay locally through e.g. LocalBitcoins.com. Bitcoins can also be obtained by becoming a part of the Bitcoin network and start mining for bitcoins. Before the days of ASIC miners, individuals could set up their computers to mine and earn bitcoins easily. Those days are long gone due to the difficulty to mine Bitcoin, the difficulty level of Bitcoin, has risen enormous making it harder and harder to earn bitcoins with the same equipment. Becoming a miner and seeing positive ROI would mean a substantial investment and is now left to the big companies and wealthy investors. For most individuals, purchasing your Bitcoin through a Bitcoin Exchange is the best option. You can also find ways to earn free bitcoins.

Chuck Reynolds
Contributor

 

 

 

Alan Zibluk Markethive Founding Member

Blockchain Secures Your Data Like No Other Technology Ever Did

Blockchain Secures Your Data Like No Other Technology Ever Did

  

Blockchain Secures Your Data Like No Other Technology Ever Did

When it comes to most technologies, we know about the basic function that they perform. But, a sizeable portion of the users never express any interest in understanding the technology in depth. For example, when we talk about sending an email, we all know that the data we send is received by the recipient unless the transfer fails, which leaves us with the obvious option of clicking the “Retry” button. But how many of us know about the various protocols and the technicalities involved?

Similar is the case with Blockchain. We all know that the data is immutable, transparent and the entire system is very tough to hack. But how many of us know the reason why Blockchain is so secure? In today’s world, as the number of cyber attacks is constantly on the rise, security is paramount as most of our data is digitally stored. Now let’s try and understand some of the features that make Blockchain an extremely secure option of storing your data.

A completely trustless system that you can trust

The most noteworthy feature that makes Blockchain secure is that it is based on a completely trustless system. The permissions to read and write the data on the Blockchain are equally distributed among all the users connected to the network. No user is given any special privileges when it comes to making any decision. Before Blockchain, the sharing of information in real-time without the requirement of trust was not possible.

The advent of Blockchain successfully solved the ‘Byzantine General’s problem’, a name given to a problem concerning the major drawbacks of a distributed consensus system. In the Byzantine General’s problem, it is assumed that the General commanding multiple units (five, in our case) is about to launch an attack on a city. If all the General’s units launch an attack at the same time, they will win. If any unit defects or retreats, the attack fails.

The messenger sent by the General needs to deliver the message to the five units under his command. Now a traitorous Commander, third to receive the message, that we’d call ‘X’ might change the command sent by the General without the knowledge of the messenger. The two Commanders receiving the message after ‘X’ believe that the message is in the words of the General. But in fact, it is the edited message sent by ‘X’. This would lead to a failed attack due to poor co-ordination between the various units.

Blockchain successfully solved this problem by introducing a concept called the ‘Proof of Work’, which made it essential for each message sender to attach a history of all previous messages and ‘spend some time’ on the same, which is fixed at 10 minutes. The purpose of ‘spending some time’ is to ensure that the sender has put in some effort in writing the message and to make it easy to identify malicious or incorrect data.

Blockchain makes it easy to identify malicious or incorrect data

A very basic example in the case of the Byzantine General’s problem would be where each Commander is required to write the numbers 1-500 before confirming and sending the message to the next Commander. It would certainly take some time to write the numbers but the verification of the same would be quick and easy.

Now, since the time each Commander can spend on the message is fixed at ten minutes, ‘X’ would have to change his message and the messages the two Commanders who attested to the message before him because the ‘Proof of Work’ concept requires a history of all previous messages to be uploaded too. Now, to successfully change the message, ‘X’ would have to do twenty minutes of work plus his own ten minutes, amounting to a total of thirty minutes’ worth of work in the ten minutes allotted to him. This way, altering the attested data is practically impossible as even if ‘X’ does upload an incorrect message, the rest of the Commanders can ignore the incorrect message and follow the one attested by most Commanders.

The benefits of decentralization

The decentralized structure of Blockchain also adds to the security it offers. No single user or organization is given supreme control of the database. Having a decentralized design, it does not have a single point of failure. Even the loss of power or the total failure of a few devices connected to the Blockchain network won’t have any effect on the data stored in the entire Blockchain database or some parts of it are stored across all the devices connected to the Blockchain network.

Since Blockchain is decentralized, it cannot be controlled by the government. Government intervention usually results in some domains and websites being shut down as the government believes such websites are not working in accordance with the established rules and regulations. The most famous example in recent times being the search engine Torrentz.eu. At present, torrent sites are the closest thing to a decentralized system on this scale.

Ensuring privacy through Blockchain

Also, the data stored on the Blockchain is cryptographically secure and the public-private key cryptography used ensures that the data is received only by those it is intended for. The cryptographic techniques also help the users maintain privacy by allowing them to remain pseudo-anonymous while sending and receiving data across the network. Due to its decentralized architecture and the cryptographic coding used in its design, the Blockchain network is mathematically very tough to hack into as the cost of hacking such a system skyrockets where the data stored on each node is properly synchronized with the entire database.

Permanent data storage on a Blockchain

All the above features make Blockchain a practical option for a user who wishes to store his data digitally without the risk of losing it. The data stored on a Blockchain will always be there and it cannot be edited or tampered with in any manner. New or updated data can only be appended onto the Blockchain later. Realizing the plethora of advanced features of security offered by Blockchain, many companies have started investing heavily in the research and development of Blockchain-based applications. Blockchain is slowly being integrated into our daily lives as companies are exploring both fintech and non-fintech applications of this wonderful technology which might completely change the way we look at digital data storage.

Chuck Reynolds
Contributor

Alan Zibluk Markethive Founding Member

Telecom Breakthrough: Blockchain to Stop Big Brother From Watching You

Telecom Breakthrough:
Blockchain to Stop Big Brother
From Watching You

  

Telecom Breakthrough: Blockchain to Stop Big Brother From Watching You

Ensuring privacy and security is perhaps one of the key issues in the era of the Internet. Advancements in technologies allowed us to access information faster, communicate easier and at the lower cost. However, the same technologies allowed third parties to collect our personal data. “The Internet is the most liberating tool for humanity ever invented and also the best for surveillance,” said John Perry Barlow, the cyber rights activist, “It is not one or the other. It is both.” Cointelegraph spoke with Roman Nekrasov, CEO and Co-Founder of Encrypto Telecom, an intriguing project in the Blockchain and cryptocurrency space setting out to transform telecommunication industry.

There is a lot to be changed in telecom industry

Roman came to Blockchain industry with Bitcoin mining. In late 2012, following his friend’s advice he set up a Bitcoin farm using four Radeon 7970 video cards. As the Bitcoin price was rising, he got more and more interested in the technology behind Bitcoin, how cryptocurrencies work and what are the reasons of such an obsession about cryptocurrencies nowadays beside mining. In 2014, working in the local telecom company, Roman encountered a bunch of issues ranging from absolute lack of interest in customers’ needs, inconvenient user interface of personal accounts, topped with vulnerability of customers’ personal data.

He says:

“It was the time I came up with the idea to start a project which could solve some of these problems through integration of Blockchain technology. This is how we created Encrypto Telecom. My partners supported the idea, and agreed that we had everything we needed to create a service we imagined — convenient, secure, protected and at an adequate price.”

So insecure, so vulnerable!

It is a scary thought, but our personal data is being monitored constantly. It is collected by a range of organizations or individuals, ranging from state agencies, harvesting data for the purposes of ensuring national security, to business corporations, wishing to learn more about customer’s habits. The safety of collected data can never be fully guaranteed — high-profile hacks and leaks of millions of users’ accounts details, passwords, credit cards information, home addresses take place with frightening frequency. Besides, hackers and malicious organizations can purchase this data to defraud its owners.

There is now a whole bunch of applications for communication through instant messaging, voice and video calls. Some of them are placing privacy and security at the core, however, there are applications still relatively insecure. Thus, even if the content of the call is not intercepted, it is still possible to collect metadata and other details posing a risk to the security and privacy of those making a call.

Ensuring privacy of communications

EncryptoTel has developed a platform that enables users to communicate securely through existing applications such as Zoiper, X-Lite, etc, ensuring full encryption of voice and video calls and financial privacy through integration of cryptocurrency payments tools. EncryptoTel’s suggests integration of a virtual private branch exchange (PBX), which can be rolled out for businesses easily and quite fast. It will enable businesses to deploy a secure Internet-based telephone network, which could be connected to the external phone system. Many offices are already using PBXs or IP-PBXs, EncryptoTel aims to develop this model further significantly improving privacy and making it more cost-effective.

Nekrasov told Cointelegraph:

“EncryptoTel is more than just another PBX system. Besides offering a range of services for businesses, we are also aiming to extend these services to individual customers, who wish to communicate not caring too much about the privacy of their personal data.”

Currently, there are no competing companies in the space offering similar model. “Well, there are giants like Twillio and DIDWW, but we don’t consider them as our competitors, as our approaches differ a lot,” Nekrasov explains. “We are aiming to take the maximum benefit from integration of Blockchain technology and cryptocurrencies. Moreover, we are planning to collaborate with these companies to expand our services and numbering capacity.”

How the platform works

EncryptoTel uses the most innovative digital technology solutions, including encryption through open, trusted algorithms, and Blockchain technology. The company has developed services for a basic user, businesses and marketing agencies. EncryptoTel’s PBX allows transferring incoming calls to any number, including mobile and stationary phones. It is possible to carry a fully automated distribution of calls with the help of specially created schemes and scenarios. Once the complex setting up of the call queue and incoming calls transfer schedule is completed, it becomes easy to distribute calls among let’s say company’s employees, therefore significantly simplifying tasks of a secretary.

Platform also offers a number identification feature along with hiding/substitution of the number. The most reliable traffic encryption protocols are used to ensure privacy of all conversations. All data is effectively protected inside the network and only the user can have access to it through a personal account. Roman says that the interest in EncryptoTel is already huge, however, there is a number of challenges the team had to encounter. Thus, there is no clear understanding among users what is the PBX and how it functions, not even mentioning the understanding of Blockchain technology, but EncryptoTel team members are always ready to address all the questions and requests from customers.

Roman says:

“We would like to expand our services, attracting more and more customers but the project is currently financed through our personal savings, as well as with the support of friends and community.”

On April 24, EncryptoTel launches an ICO, which is going to last for 37 days. The team is expecting to raise at least $100,000, which would allow building a stable and fully-functional PBX. In case the ICO attracts more than $250,000, company will embark on development of a native traffic encryption protocol based on Blockchain technology. If investments exceed one mln. EncryptoTel will start a huge campaign aimed at international expansion in B2B, B2C, B2G sectors. The EncryptoTel team has successfully completed development of the majority of platform’s features of a working BETA version of the platform.

Chuck Reynolds
Contributor

Alan Zibluk Markethive Founding Member

Tips to Creating a Successful Content-Marketing Campaign

Tips to Creating a Successful Content-Marketing Campaign

The phrase “content marketing” is all over the web these days.

Content has become a conglomeration of many things: webinars, blog posts, videos, social network shares and more. It sounds like a great idea. If done right, a well-executed digital campaign will yield considerable benefits for both established businesses and entrepreneurs. Such a strategy has the power to position a business as a topical authority and establish the owners and executives as experts.

The devil, as they say, is in the details. Implementing such a campaign isn’t as easy as it seems and takes a bit more effort than pressing a button. Depending on your business goals, time needs to be spent aligning your company's brand’s online persona with your customers’ needs. Once posted, content that’s shared requires interaction on your part. Interact directly with your community by saying something meaningful to stimulate continued conversation. Content marketing can be a boon for your brand. Be sure to follow these tested truths when planning your campaign:

Know your audience and keep the content relevant. 

Each social network has a unique identity and audience, so take some time to research the demographics of the social marketing platforms you use to share. All sites are not the same. Some skew highly to men (Google+) and others are more popular with women (Pinterest). Check the current information on the sites to determine where to share your content to the to best effect.

Whether you market to businesses or consumers, you no doubt have a grasp of their interests. Blogs are still a great way to build an engaged community around your brand and interests. An example of a blog that successfully uses content marketing is SavvySeller.co. This is a community site offering helpful advice for online sellers while displaying ads for its parent company, World Lister. Check what your customers are sharing on social media. By making your blog posts relevant to readers, they may pass along your content as well and become your advocate, awarding you with free, yet most valuable, marketing.

Beware of constant self-reference. 

Repetitive self-reference will not stimulate engagement. The days of broadcast advertising are long past, and without giving your message a twist, broadcasting will do nothing but discourage readers. Rather, use stories to illustrate the benefits your business has to offer. Direct your message to the reader and be sure to personalize it by using the word “you.” In this way, your posts directly address (and pique the interest) of your community. Keep the promotional content to no more than a 1-to-7 ratio. As social scientist Dan Zarrella says, “Stop talking about yourself." Instead, "start talking as yourself.”

Share what works

When creating content for your business, consider your own time schedule and talents. Sitting down to write a white paper may be painful for many people, and small businesses may not have the time or resources to produce one. If you are more comfortable communicating your messages in another format, for example, why not try sharing the following:

Short-form articles (like this one)

Infographics or small sharable graphics are easily produced on a platform such as Canva

Photographs of products in action that you can share on Instagram 

Short product demonstrations or instructional videos (try to keep them under two minutes)

Other related business content

Also, consider sharing content about things you are passionate about. By posting ideas and subjects that are personally relevant to you (the business owner), you project your humanity to your online influence. 

Consider curating.

 A growing trend is content aggregation which is deriving content directly from others’ RSS feeds and automatically turning them into shares. Aggregating is not curating. In contrast, curating content requires a human being to find, read and qualify digital content that is relevant to your audience. Curating may sound like a lot of work, but it may take as little as 30 minutes a day. If you (or another member of your staff) regularly read digital content that relates to your business, finding articles to share is a simple proposition. 

Even the owners of niche businesses can find articles that might resonate with their audience. If you curate and share content from others, your audience will look to you as a reliable source for information on a specific topic. A secondary benefit of sharing third-party content is that you build relationships by broadening the conversation with others within your industry.

Measure once and then again.

 Track the comments and responses to your pieces. When you share links on social media platforms, use the many free metrics tools to decipher which of your posts were on track. By on track, I mean were they read? Shared? Acted upon? If a platform or content type isn’t working for you, be sure to put effort into the ones that are. Know that your content marketing will build with time and continuity, and social content may not translate into sales immediately. Set up a plan in advance and have reasonable expectations. You are brand building for the long haul.

Chuck Reynolds
Contributor

Alan Zibluk Markethive Founding Member

Tips on Developing a Successful Inbound-Marketing Strategy

Tips on Developing a Successful Inbound-Marketing Strategy

  

As a small-business owner, you wear a lot of hats:

customer support, HR, media relations, bookkeeper, and the list goes on. With so many responsibilities, having marketing strategies doesn't always make the top of the list.  But it should, as it is important for maintaining the pipeline to ensure you stay busy. One way to help generate new business (without having to be out in the field every day) is inbound marketing, a technique that brings customers closer to the brand through blogs, videos, email newsletters and social media marketing, to name a few. These strategies bring customers in, instead of having to try and gain customers through activities like buying ads, cold calling and buying ads, a practice called outbound marketing. By following these easy steps, you’ll be well on your way to building a customer pipeline and able to stay focused on the work you’re passionate about.

Leverage online profiles.

Many people make the mistake of assuming their website is a one-stop marketing shop. But your presence on the web should go beyond your company’s website. Leveraging your personal social accounts to link back to your business site is a simple first step to begin marketing yourself in a less conventional way. It helps drive traffic from a wider variety of touch points and increases the potential audience you can reach.

Ensure the “About” sections of sites like Twitter, Facebook, Pinterest and LinkedIn have a short elevator pitch about who you are, what you do and why someone should use your company. And if it suits your business, don’t be afraid to inject some personality into it.

Build a blog.

This can take a lot of time, but there is serious value in good content. Not only does it help establish you as an expert in your field, it also helps to increase your website’s rank for main keyword phrases. When deciding what kind of posts to write for your blog, consider what your potential clients will be searching when looking to hire someone like you. Producing content that answers questions clients have will mean they’re more likely to land on your site and in turn will be able to read how much you know about your area of expertise.

Be sure to reference back to your site or consider integrating your blog with your website for a one-stop shop for value-added content and the services you provide. It’s a great one-two punch to show potential clients that you know your stuff and your business can solve their problems.

Contribute content to relevant websites.

Much like writing blog content, this involves some writing on your part, but it is well worth the investment. There are a number of websites that accept guest posts written by people who are experts in their field. Find blogs whose audiences are made up of your ideal audience, and contribute the occasional article to establish yourself as a thought leader and help generate business leads. It’s great when you can leverage trending topics into a relevant article to pitch. Sites always prefer content that is timely and dialed into the hot topics of the moment. This is a “quality over quantity” situation where you don’t need to be writing articles for different sites every week.

Tell people about your successes.

Don’t worry about coming across as bragging, it’s important to make it known when work is yours. People looking to hire or explore new companies are always searching for insight into who’s doing good work and what they are saying about the industry. Publishing a running record of your work is one of the best ways to demonstrate the value you deliver.

Keep an updated portfolio on your website, share content you’ve written via Twitter, Facebook, and your blog, and include your bio at the end of freelance content you’ve written. If you’re a photographer, include a watermark when your photos are shared online. There are lots of ways to share and take credit for your work, and it’s valuable to do so.

Publish reviews from past and present clients.

The best way to build confidence in your work is through testimonials from people who have worked with you in the past or had experience with your company. These can be done in a number of ways thanks to all of the social platforms available. Have someone write you a recommendation on LinkedIn or for use on your website. You can also amplify the good will of your clients by retweeting a particularly flattering tweet and integrating your social media into your blog or website. And lastly, remember to post any positive media coverage on your site. There’s nothing like giving your potential clients the confidence that they’re working with someone who’s the best and who has delivered great experiences to other people.

Chuck Reynolds
Contributor

Alan Zibluk Markethive Founding Member

The Fundamentals for a Successful Inbound-Marketing Strategy

The Fundamentals for a Successful Inbound-Marketing Strategy

An entrepreneur’s responsibilities reach far and wide. 

You wear a number of hats on a day-to-day basis, none more important than marketing. To succeed, you must learn the strategies and practices that work best in 2014. A deep understanding of inbound marketing best practices is vital to the growth and success of your business. No matter how busy you are, you simply can't ignore the importance of marketing your brand effectively. Take a look at the eight most important things every entrepreneur needs to know about inbound marketing.

The traditional marketing playbook is broken. 

Almost everyone – 91 percent, to be precise — has unsubscribed from email lists. Two-out-of-three people (68 percent) who record TV content do so to skip advertisements (Motorola, December 2012) and, according to DoubleClick, the average click-through rate on display ads is only 0.2 percent. According to Brian Halligan, the CEO of Hubspot and author of the book Inbound Marketing: Attract, Engage, and Delight Customers Online, the way modern consumers shop and make purchases has changed dramatically, and as such, businesses must adapt in order to survive.

In an interview, Halligan said, “The Internet has fundamentally changed how we live our lives, and as consumers, we now have more options than ever to tune out marketing that is annoying. Most entrepreneurs I know understand that based on their own experience, but when it comes to marketing their business, they default to the traditional marketing playbook because it's easy or because it's what everyone has always done for years. That's a huge mistake."

According to Halligan, you can no longer rent your way to consumer attention, you need to earn it. Instead of dreaming up new ways to interrupt your way into your prospects’ lives, invest in ways to engage them meaningfully with an inbound experience. “Dharmesh (Shah) and I wrote the inbound marketing book to give entrepreneurs actionable advice to attract, engage and delight their prospects, customers, and leads,” Halligan explained. "Inbound marketing focuses on the width of your brain, not the width of your wallet, and entrepreneurs have more remarkable ideas than anyone I know."

Your content must be remarkable enough to break through the clutter. 

Think about how many channels you have on your television, and how many websites and social media channels compete for your attention each day. The same is true for your customers. It’s not enough to just produce content. Your content must educate, inspire or entertain your audience. Don’t talk about your brand non-stop or try to sell people too early or often in your content. Instead, try to spark interesting dialogue and discussion with your content. Doing so will pay off with attention and engagement.

Think of your website as a hub, not a megaphone. 

Far too many businesses think about their websites as broadcast channels for addressing a large group of people. Your website functions best when its content and design are built with a human touch. Instead of writing copy to impress your competitors, create copy and experiences an individual customer will love. Don’t scream through a megaphone at your customers. Design the entire end-to-end experience with individual humans in mind. Conversation trumps a broadcast message every time. Design your web experience accordingly.

Inbound includes content and code. 

Many entrepreneurs mistake massive volumes of content for an inbound strategy, forgetting that shipping code is indispensable as well. Specifically, free tools are powerful in converting web traffic into highly engaged leads. For example, InsightSquared created Sales Funnel, a free tool that allows Salesforce users to quickly and efficiently diagnose their sales funnel. Leads that try Sales Funnel convert at a rate almost twenty times higher than leads that don’t. Free tools can transform your entire customer experience. Invest developer resources into your marketing efforts for the biggest impact possible.

Master the call to action.  

Think about how hard you work to get traffic to your site. Now think of what happens if a visitor comes to your site and doesn’t know where to go or what to do next once they visit. You’ve just wasted all of your hard efforts! Your call to action is a sign post showing your visitors where they should go next. If someone came to your blog first, you want to make it easy and seamless for them to subscribe to read similar articles. If a visitor comes from a co-marketing initiative with a partner, ensure the copy on the site is built specifically to appeal to someone who knows both your brands. Tailor the next step accordingly. It’s not enough to optimize your site for search. You have to optimize your site for action.

Get visual. 

The average attention span is just eight seconds, so even if you want to write a 10,000-word essay on your new product launch, chances are slim that your audience will get through it. Creating remarkable visual content is a great way to cut through content clutter and stand out from the pack. If you don’t have an army of designers at your disposal, use Canva or Visage to create simple and beautiful visuals, hire a young freelancer to pitch in or just put your iPhone to good use taking pictures of your space, your customers, your team and your product. When it comes to content, a photo (or video) really is worth 1,000 words.

Inbound delivers higher ROI for your business. 

In a 2013 survey, American inbound marketers spending more than $25,000 per year saved an average of 13 percent in overall cost per lead ($36 versus $41 with outbound). It’s far more expensive to continue pouring money into paid channels that don’t deliver returns than it is to invest in blogging and social media. Inbound marketing is good for your bottom line and your brand.

Hire wisely. 

If you’re hiring an in-house marketer or an agency to help with your marketing efforts, you need a skill set that matches your strategy. Invest in people who are digitally savvy, highly analytical, have significant reach on the web and have experience creating remarkable content.

Today’s marketing world requires companies to continually optimize. The team behind you must be well equipped, comfortable with the technology and have the tenacity to update your strategy and approach on a daily basis to meet your growth goals. Successful inbound marketing is a science that requires a specific expertise and plenty of experience. Even if marketing isn’t your cup of tea, it’s important that you know and understand the basics. If you keep these tips in mind, you can rest assured that your business is practicing the latest and greatest inbound marketing techniques, and maximizing its growth potential.

Chuck Reynolds
Contributor

Alan Zibluk Markethive Founding Member