Cryptocurrency

The Future of Money

Cryptocurrency is a medium of exchange, designed for the internet, that uses strong cryptography for executing financial transactions. Most cryptocurrencies use blockchain technology to obtain decentralization, transparency, and immutability.

One of the key features of cryptocurrencies is there is no centralized authority, such as banks, credit card companies, or the Federal Reserve that controls it’s distribution. Thus, making it immune to government control.

Cryptocurrencies can be sent directly between two parties without the need or approval by a third-party, such as MasterCard or Visa. The transactions can be completed with negligible processing fees, allowing users to avoid the steep fees charged by traditional financial institutions.

Benefits of Blockchain

3D illustration of connections and dots representing the concept of blockchain.

Distributed Ledgers (blockchains) are emerging as the leading technology for internet-based payment and transaction systems. Blockchains have well-publicized characteristics, such as encrypted, secure transactions; smart contracts; the increasing capacity of 3rd generation blockchains to process 10’s of thousands of transactions; and the ability to eliminate intermediaries that add no value or slow down the process. Yet, there are other, less-publicized, but substantial benefits. This includes nearly unlimited scalability, fault-tolerance and reliability which will ultimately be the impetus behind blockchain adoption.

Traditional Centralized Approach

Traditional software applications are based on a centralized model where all user communication and network traffic is directed to one location, generally a network server. As more demands are placed on the system, more server hardware and bandwidth is required. This is why most high-volume transaction systems, such as, credit card processors, are still housed on expensive mainframes. At peak demand, they may need to process more than 30,000 transactions a second. In addition, maintaining a real-time, redundant copy of the system, requires  a duplicate set of hardware, software and data be ready, in case of a system failure. This is typically costly and inflexible.

Centralized System

Blockchain’s Distributed Architecture

Blockchains work very differently by distributing the processing across multiple network servers (nodes) and not just one centralized server. Distributed architecture has proven to be  far more reliable by eliminating the need for expensive central processing. Blockchains unique method of distributing processing over many nodes means the failure of single or multiple nodes does not affect the operation of the rest of the system. The more nodes on the network the more fault-tolerant the system.

Scalability

Blockchains distributed architecture provides far more benefits than fault-tolerance (network failure). Blockchains have the ability to start small and add more node as needed. Even though the blockchain may start out as a proof-of-concept or small application, it’s ability to grow and support enterprise-scale applications is nearly limitless. This is an important feature because it removes the requirement to build an expensive platform up-front in anticipation of high demand volume, before the actual requirements are known.

The blockchains distributed architecture allows administrators to increase capacity by adding nodes. In addition, there is no supplementary bandwidth requirement for existing nodes as new nodes are added, ensuring minimal impact as system capacity grows.

Reliability & Flexibility

Blockchains provide multiple levels of redundancy as each node is capable of writing to the blockchain. This eliminates single points of failure by providing a fully distributed and fully redundant system at no additional cost.

In the event of a natural disaster, the blockchain can continue to provide full functionality between connected blockchain nodes when parts of the network are down due to lack of network connectivity. As nodes come back on line or additional nodes are added, the blockchain uses auto discovery mechanisms to self-heal as node connections are reestablished without manual intervention.

Blockchains distributed system architecture provides unparalleled expandability, scalability, reliability, and resilience that is difficult to duplicate.

It’s these less-publicized features that make technologist so excited about the future of blockchain.

Fun Factoids About 108

Numbers and nature have always been intertwined. In fact, many engineering disciplines could be described as applying mathematical theories and numbers to nature in order to progress technology.

Many numbers and the functions they symbolize are repeated in nature. 0,1, 2, and 3 are primary examples of these. Numbers like 13, 96, and 108 have profound cultural significance depending on where in the world you are. To those who think analytically, the world world may be described in numbers.This article pays special attention to the significance of 108.

Although the number is open to interpretation there is no doubt of its significance in Asian cultures and religion.

ASTRONOMY: If you believe that the Gods created the heavenly bodies, you’d find some evidence to support this belief. Both the Sun and the Moon are exactly 108 time their diameter from the Earth. This equality of distance ratios between these 3 celestial bodies is the reason why we the moon perfectly covers the sun in a solar eclipse.

MATHEMATICS:In mathematics, the number 108 is an abundant number, a semiperfect number, a tetranacci number, and a hyperfactorial of 3 (11*22*33).

MANTRA: In Hinduism, the Mukha Shivaganas are the attendants of Shiva and number in 108. Typically, prayer beads in both Buddhism and Hinduism will include 108 beads to repeat mantras (with the possibility of adding in 1-3 guru beads) or to name the Mukha Shivanganas. Even hard-core yogis (especially those with religious practices) will repeat Sun Salutations 108 times.

MEDITATION: 108 may be interpreted as the number of enlightenment in Hinduism and Yoga. It is a number of connection, spirituality, and even astronomy.In Buddhism, there are 108 feelings, or earthly temptations one must overcome in order to reach Nirvana. This number if found by multiplying the number of senses (smell, touch, taste, hearing, sight, and consciousness) by their condition (painful, pleasant, or neutral) again by their origin (internal and external) and finally by time (past, present, or future). In Japan, Buddhist temples ring their bell 108 times to end the old year and welcome in the new one.

Theories may go on and on as to the cultural, historical, physical, and spiritual significance of 108, but one thing the number represents is connection. Maybe you won’t find enlightenment through the number 108, but it may be a place to start!

What’s Next in Blockchain? – Blockchain

Sounds obvious, right? For the last few years we’ve tended to call everything associated we blockchain – blockchain. Yet, while we called it blockchain, the attention has not actually been on blockchain technology but on the sky rocketing value of currencies such as bitcoin and Ethereum Ether.  As the early fascination with coins and get rich quickly ICO’s diminish, focus is turning to building major blockchain applications that are opening up new revenue opportunities and delivering significant operational efficiencies.

Recently, I met a man at a blockchain meetup that purchased Bitcoin’s when it got all the way up to a $1. He had been following the currency from the time it was a few cents and though people were crazy to purchase it at all. Never the less, when it got to a dollar, he decided to buy anyway. Then, one thing lead to another and he forgot about the coins. Then, a funny thing happened near the end of 2013, bitcoins almost reached $1,000USD’s. By the end of 2017, the value of each coin had gone passed  $17,000 USD’s . For a brief moment, bitcoins had reached $19,000 USD’s. My friend still had all his original coin’s.

By 2017 cryptocurrencies or blockchain’s were in a full out,financial bubble.  Just like the internet 20 years earlier when Initial Public Offerings (IPO’s) were having money thrown at them, Initial Coin Offerings (ICO’s) were all the craze. The bubble lasted for less than a year and was quickly burst when the US Securities and Exchange Commission, sent out over 900 subpoena’s to companies that went through an ICO.  While prices have come out of the stratosphere, Bitcoin has dropped back to the $3,000 – $4,000 range, the market is still getting a lot of interest.  

The truth is that the soaring valuations of cryptocurrencies drove the interest in blockchain. Rightly so, the average increase in the value of Bitcoin rose an average of over 2,100 percent EVERY YEAR from 2010 to the end of 2017.  I have no idea whether we well see another cryptocurrency driven bubble nor am I predicting one. The blockchain market is changing from a focus on coins to focusing on the technology behind blockchains.

What some are starting to grasp is the quantum leap in technology that blockchain delivers. Since the introduction of bitcoin, software developers around the world have been poring lots of development time into improving blockchain technology. The new features that are starting to emerge with blockchain is nothing short of staggering.

Bitcoin’s blockchain implementation was considered first generation blockchain. We have now entered third generation blockchain technology with the advent of smart contracts, asset management, and a plethora of API’s for executing transactions. In the spring of 2019 the EOS blockchainis scheduled for release. EOS will bring orders of magnitude in improvements.While the second highest money raised was $250 million in investment capital,EOS raised an astounding $4 billion to fund the development of their blockchain.

Blockchain isn’t just a new way to manage online transactions safely, it is an utterly disruptive technology. It will continue to be the technical backbone for cryptocurrencies, but it will also emerge as anew way to build large scale (enterprise) systems. Most people that are interested in blockchain have already become familiar with some of its components, such as, wallets, blocks, censuses algorithms that include  Proof-of-Work and Proof-of-Stake, and tokens.They may even be familiar with its ability to reduce third party involvement and counter party claims, which are dramatically reduces both cost and time.

Yet, unlike the monolithic legacy enterprise systems of the past, blockchains are distributed systems. Distributed meaning they can dispense processing over many servers. For example, credit card companies are among the largest applications needing to process over 25,000 credit card transactions a second. Many credit card companies still use mainframe computers to deliver such a high transaction rate. EOS’s beta blockchain can already process 10,000 transactions a second and theoretically will be capable of processing over 1,000,000 a second, when their blockchain is fully implemented.

The people at bitcoin figured out how to build a distributed system that was secure. Unlike legacy enterprise system that were built on one or a hand-full of servers, or mainframes, blockchains spread their processing over many servers operating in parallel. In fact, these systems have the ability to expand tens of thousands of servers.

Blockchain technology will become a standard component of most major online transaction systems in the future.  Blockchain is not Bitcoin, Ether, nor any other cryptocurrency. It is the underlying technology that make bitcoin work. The early interest in blockchain has actually not been in the blockchain technology, but the highly speculative coins. The next phase will focus on the technology that makes blockchain work.