Bitcoin Explained in Simple Terms
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CRYPTONAIRE WEEKLY CRYPTO Investment Journal
CRYPTONAIRE WEEKLY CRYPTO investment journal CONTENTS WEEKLY CRYPTOCURRENCY MARKET ANALYSIS...............................................................................................................5 TOP 10 COINS ........................................................................................................................................................................................6 Top 10 Coins by Total Market Capitalisation ...................................................................................................................6 Top 10 Coins by Percentage Gain (Past 7 Days)...........................................................................................................6 Top 10 Coins added to Exchanges with the Highest Market Capitalisation (Past 30 Days) ..........................7 CRYPTO TRADE OPPORTUNITIES ...............................................................................................................................................9 PRESS RELEASE..................................................................................................................................................................................14 ZUMO BRINGS ITS CRYPTOCURRENCY WALLET TO THE PLATINUM CRYPTO ACADEMY..........................14 INTRODUCTION TO TICAN – MULTI-GATEWAY PAYMENT SYSTEM ......................................................................17 ADVERTISE WITH US........................................................................................................................................................................19 -
Prism: Scaling Bitcoin by 10000
Prism: Scaling Bitcoin by 10,000× Lei Yang∗ Vivek Bagaria† Gerui Wang‡ Mohammad Alizadeh∗ David Tse† Giulia Fanti§ Pramod Viswanath‡ ABSTRACT and throughput in the blockchain (§4). A recent theoretical paper Bitcoin is the first fully-decentralized permissionless blockchain described the core protocol and analyzed its security properties [6]. protocol to achieve a high level of security: the ledger it maintains While these theoretical results are promising, it is not clear has guaranteed liveness and consistency properties as long as the ad- how well they can translate into real-world performance. First, the versary has less compute power than the honest nodes. However, its Prism consensus protocol is much more complex than the longest throughput is only 7 transactions per second and the confirmation chain protocol: clients must maintain over 1000 distinct blockchains, latency can be up to hours. Prism is a new blockchain protocol that is which refer to each other to create an intricate directed acyclic graph designed to achieve a natural scaling of Bitcoin’s performance while (DAG) structure, and they must process blocks at very high rates maintaining its full security guarantees. We present an implementa- (e.g., 100-1000s of blocks per second at 100s of Mbps) to update these tion of Prism that achieves a throughput of over 70;000 transactions blockchains and confirm transactions. Second, Prism’s theoretical per second and confirmation latency of tens of seconds on networks analysis relies on several simplifying assumptions (e.g., round-based of up to 1000 EC2 Virtual Machines. The code can be found at [5]. -
Crypto Garage Developed and Executed the Contract of a P2P
April 19, 2019 Crypto Garage, Inc. NEWS RELEASE Crypto Garage Developed and Executed the Contract of a P2P Protocol Based Crypto Asset Derivative Settled in Bitcoin 〜Executed First Derivative Contract with Blockstream〜 Crypto Garage, Inc. (HQ: Tokyo; Representative Director: Masahito Okuma; Crypto Garage), a Fintech company developing blockchain financial services and also a subsidiary of Digital Garage, Inc. (TSE first section: 4819; HQ: Tokyo; Representative Director, President Executive Officer and Group CEO: Kaoru Hayashi; DG) developed a peer-to- peer crypto asset derivative contract protocol and executed a contract based on this protocol on the Bitcoin Blockchain. Blockstream Corporation (HQ: Victoria Canada; CEO: Adam Back; Blockstream), the global leader in blockchain technology and financial cryptography, and Crypto Garage entered into a derivative contract that locks the future Bitcoin price [on a collared basis] in order to hedge the Bitcoin price fluctuation risk against the US dollar. Crypto Garage developed a P2P derivative technology based on the Discreet Log Contracts (https://dci.mit.edu/smart-contracts) that Thaddeus Dryja from MIT Digital Currency Initiatives proposed. This contract is a smart contract applied on the Bitcoin Blockchain and requires the agreement and posting of collateral by both parties. The agreed terms and collateral are defined on the Bitcoin Blockchain. Since settlement is cryptographically secured, this contract minimizes counterparty risk, such as breach of contract and other contract termination events. Contact: Hiroshi Ikemoto, Leo Shiraishi, Corporate Communication Dept., Digital Garage, Inc. Email: [email protected], TEL: +81-3-6367-1101 April 19, 2019 Crypto Garage, Inc. NEWS RELEASE The bitcoin price for the maturity date is determined by the ICE Cryptocurrency Data Feed, as agreed upon by both parties in advance. -
Bitcoin Scaling Solutions and Their Downsides by Simona Mola and Zhong Zhang (March 6, 2019, 12:35 PM EST)
Portfolio Media. Inc. | 111 West 19th Street, 5th Floor | New York, NY 10011 | www.law360.com Phone: +1 646 783 7100 | Fax: +1 646 783 7161 | [email protected] Bitcoin Scaling Solutions And Their Downsides By Simona Mola and Zhong Zhang (March 6, 2019, 12:35 PM EST) Bitcoin was designed as a decentralized monetary system and an alternative to central banking. Decentralization implies that no one can unilaterally change the way bitcoin works or its transaction history. Since Satoshi Nakamoto released the original bitcoin whitepaper in 2010,[1] reaching and maintaining decentralization has been the priority of all technological developments. To this end, bitcoin relies on its technological design: open source software, public-key cryptography, blockchain data structure, proof-of- work mining and distributed full nodes. Simona Mola However, it is well known that bitcoin has a scalability problem.[2] We have all heard at least once the comparison between bitcoin and Visa in terms of transaction capacity. That is, while Visa handles an average of 150 million transactions per day as of the end of 2018,[3] bitcoin network processes about 280,000 transactions per day.[4] This capacity is not enough to serve as a global digital medium of exchange. Bitcoin Average Transaction Fee in USD Zhong Zhang Besides the comparison with Visa, which may not be quite parallel, bitcoin’s scaling problem is reflected in its average transaction fees. In the situation of greater market demand for bitcoin transactions, the restriction of the block size to 1 MB leads to a higher average wait time before confirmation and thus greater transaction fees. -
A Behavioral Economics Approach to Regulating Initial Coin Offerings
A Behavioral Economics Approach to Regulating Initial Coin Offerings NATHAN J. SHERMAN* INTRODUCTION Initial coin offerings (ICOs) are an outgrowth of the cryptocurrency space in which companies raise capital by issuing their own cryptocurrency coin to investors. Although ICOs are an innovative method of raising capital, the growth of the ICO market is troubling considering no investor protection regulations govern the ICO process. Investors pour large amounts of money into these offerings, which are issued by companies that typically have no history of producing a product or revenue, and the prices of coins issued in ICOs are only rising because other investors also funnel money into them.1 This pattern is markedly similar to that of a speculative bubble. A speculative bubble occurs when there are “‘unsustainable increases’ in asset prices caused by investors trading on a pattern of price increases rather than information on fundamental values.”2 In a bubble, “smart money”—informed investors—bid up prices in anticipation of “noise traders” entering the market.3 The noise traders then enter the market due to the psychological biases they encounter in making their investment decisions.4 Eventually, the smart money investors sell their holdings and the bubble bursts. 5 Thus, regulators should create a framework that adequately protects investors in ICOs. The behavioral economics theory of bounded rationality provides insights for building this regulatory framework. Bounded rationality implies that humans make suboptimal choices.6 By understanding the psychological biases that influence investors’ choices, regulators will be able to help investors adopt habits that reduce the harmful effects of speculative bubbles. -
Blockchain, a Catalyst for New Approaches in Insurance
Blockchain, a catalyst for new approaches in insurance Thought up as the underlying architecture for the Bitcoin cryptocurrency in 2008, blockchain technology is currently a hot topic and the subject of numerous studies in sectors outside the payments industry to which it has often been confined in the past. Blockchain is considered by some to represent the next technological revolution after the Internet. In fact, the idea of a decentralised, secure and transparent ledger distributed among users can be relevant to many different fields. The insurance industry, with its highly complex processes, could be a major beneficiary of the technology. By removing intermediaries in a new type of arrangement, blockchain technology could completely upend the insurance value chain: - Development/acceleration of new products/markets for which business models were difficult to define until now. - New approaches to underwriting, contracts and claims management, particularly through a combination of smart contracts and the Internet of Things (IoT). - Overhaul of the modus operandi of insurance agreements. - New reinsurance approaches, particularly internal reinsurance via smart contracts. - Transformation of asset management with automated settlement and delivery of intangibles. Use of blockchain should help to cut acquisition, management, documentation and compliance costs. It should help new players enter the market and new markets to emerge, particularly in developing countries. By simplifying use and increasing transparency, it will also help to improve customer satisfaction. Although the upside is significant, several risks should also be anticipated. These include competition with InsurTechs, a legal framework that will need to evolve, and the challenges of rolling out the technology on a large scale. -
Fraud & White Collar Crime 2019
FRAUD & WHITE COLLAR CRIME 2019 EXPERT GUIDE www.corporatelivewire.com 33 CHANCERY LANE Expert Guide | Fraud & White Collar Crime 2019 Alma Angotti United Kingdom | United States [email protected] UK: +44 (0) 20 7550 4604 | US: +1 202 481 8398 www.navigant.com The ability to trace transactions on the blockchain allows for the identification of the originating cryptocurrency wallet address and the beneficiary cryptocurrency wallet address. Elizabeth Sisul Bitcoin is said to offer “pseudo-anonymity” because it United States [email protected] is often difficult to connect the cryptocurrency wallet +1 646 227 4725 www.navigant.com addresses with real-world individuals and entities. Brandy Schindler United States 1. Money Laundering Risks ability to move private keys across borders with a piece of paper [email protected] in his or her pocket, or by handing off that piece of paper to a co- +1 646 227 4881 I. Pseudo-anonymity/Anonymity conspirator crossing a border. www.navigant.com Many erroneously believe that the most popular cryptocurren- The ability to easily move money across borders facilitates the cies, including bitcoin, offer complete anonymity to its users. In layering3 stage of money laundering. Bad actors may leverage reality, bitcoin transactions can be traced on the bitcoin block- the ability to conduct cross-border transactions in order to direct chain. The ability to trace transactions on the blockchain allows complex transactions through multiple countries and/or through Key Considerations and Risk Management Practices in Building for the identification of the originating cryptocurrency wallet countries with weak regulatory frameworks. In addition, the in- address and the beneficiary cryptocurrency wallet address. -
Facilitating Cross-Chain Cryptocurrency Exchanges: an Inquiry Into Blockchain Technology and Interoperability with an Emphasis on Cryptocurrency Arbitrage
Eastern Michigan University DigitalCommons@EMU Senior Honors Theses & Projects Honors College 2020 Facilitating cross-chain cryptocurrency exchanges: An inquiry into blockchain technology and interoperability with an emphasis on cryptocurrency arbitrage Samuel Grone Follow this and additional works at: https://commons.emich.edu/honors Part of the Computer Sciences Commons Facilitating cross-chain cryptocurrency exchanges: An inquiry into blockchain technology and interoperability with an emphasis on cryptocurrency arbitrage Abstract Since the introduction and proliferation of the blockchain-based cryptocurrency Bitcoin, alternative cryptocurrencies also based on blockchain technology have exploded in number. It was once believed that one, or very few, cryptocurrencies would eventually dominate the market and drive out competitors. This assumption, however, was incorrect. Thousands of cryptocurrencies exist concurrently. The vast number of cryptocurrencies leads to a problem—what if the cryptocurrency that an individual possesses does not meet their current needs as well as another cryptocurrency might? The attempt to solve this problem has led to the rise of many cryptocurrency exchanges and exchange schemes. In this paper, we will discuss the motivations for an individual to be interested in exchanging two or more cryptocurrencies by describing and comparing various popular cryptocurrencies with different desirable attributes. While we will discuss these attributes, this paper will give special focus to arbitrage in particular. In addition, we will describe various cryptocurrency exchange schemes and their advantages and disadvantages. Finally, we contribute to the understanding of cryptocurrency exchangeability and interoperability by comparing the historical price data of several cryptocurrencies to determine how often arbitrage has been possible in the past. Degree Type Open Access Senior Honors Thesis Department Computer Science First Advisor Weitian Tong Second Advisor S. -
The Lightning Network - Deconstructed and Evaluated
The Lightning Network - Deconstructed and Evaluated Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) professionals, especially those working in the blockchain and cryptocurrency environment, may have heard of the second layer evolution of Bitcoin's blockchain - the Lightning Network, (LN). This exciting new and rapidly deploying technology offers innovative solutions to solve issues around the speed of transaction times using bitcoin currently, but expandable to other tokens. Potentially however, this technology raises regulatory concerns as it arguably makes, (based on current technical limitations), bitcoin transactions truly anonymous and untraceable, as opposed to its current status, where every single bitcoin can be traced all the way back to its coinbase transaction1 on the public blockchain. This article will break down the Lightning Network - analyzing how it works and how it compares to Bitcoin’s current system, the need for the technology, its money laundering (ML) and terrorist financing (TF) risks, and some thoughts on potential regulatory applications. Refresher on Blockchain Before diving into the Lightning Network, a brief refresher on how the blockchain works - specifically the Bitcoin blockchain (referred to as just “Bitcoin” with a capital “B” herein) - is required. For readers with no knowledge or those wishing to learn more about Bitcoin, Mastering Bitcoin by Andreas Antonopoulos2 is a must read, and for those wishing to make their knowledge official, the Cryptocurrency Certification Consortium, (C4) offers the Certified Bitcoin Professional (CBP) designation.3 Put simply, the blockchain is a growing list of records that can be visualized as a series of blocks linked by chains. Each block contains specific information - in Bitcoin’s case, a list of transactions and their data, which includes the time, date, amount, and the counterparties4 of each transaction. -
In Collaboration with CONTENTS
QUARTERLY REPORT Q3 2018 in collaboration with CONTENTS FOREWORDS BITCOIN’S VALUE PROPOSITIONS TO INVESTORS CRYPTOASSET MCAPS OUTLOOK INDUSTRY EXCHANGES PEER-TO-PEER EXCHANGES DECENTRALIZED EXCHANGES ESCALATING TECH ADOPTION STABLECOINS TOKEN MARKET SUMMARY ASSET RISK-ADJUSTED RETURNS CORRELATIONS INDEXES NETWORK HEALTH LAYER 2 SOLUTIONS LIGHTNING NETWORK LINDY EFFECT REFERENCES FOREWORDS Bitcoin, the digital asset that just celebrated its 10 year anniversary, has been attracting investor attention by offering potentially high returns with relatively low correlation to other traditional asset classes. Bitcoin’s nature as digital payment method and its scarcity in terms of limited supply has also driven many investors to call bitcoin as “digital gold”. Bitcoin was founded shortly after the noto- rious 2008 subprime crisis and following reces- sion, by mysterious person or group called Satoshi Nakamoto. The following text included in bitcoin genesis block: “The Times 03/Jan/2009 Chancel- lor on brink of second bailout for banks”, can be interpreted as a statement questioning fractional- reserve banking system [1]. In summary, Satoshi’s core objective was to create “peer-to-peer elec- tronic cash system”. That objective was fulfilled completely and rest of the bitcoin’s developing story will be among significant financial innovations of our time. In the Q3 report we’ll dive deep into bitcoin & cryp- toassets, including topics within: Cryptocurrency market caps, exchanges, decentralized exchanges, and tech adoption. With Asset Summary, we’ll explore asset correlations, indices, network health, layer 2 solutions, and bitcoin fundamentals. The report aims to provide value for investors, clients, and individuals, by delivering a complete quarterly overview of the industry. -
Bitcoin Lightning Network
SED 605 Transcript EPISODE 605 [INTRODUCTION] [0:00:00.3] JM: Big blocks or small blocks? This is the fundamental question of Bitcoin scalability. The argument for big blocks is also known as on-chain scalability. Under this strategy, each block in this append-only chain of Bitcoin transaction blocks would grow in size to be able to support lower transaction fees and higher on-chain throughput. A set of Bitcoin users who supported this idea forked Bitcoin to create Bitcoin Cash, a version of Bitcoin that has a larger block size. The argument for small blocks asserts that scaling Bitcoin does not require a larger block size. Under the model of the small blocks, the scaling demands of the Bitcoin blockchain will be handled by sidechains. A sidechain is a network of person-to-person payment channels that only reconcile with the Bitcoin blockchain to checkpoint batches of transactions. These sidechains can be connected together to form the Lightning Network. Lightning Network is hard to implement. To implement a Lightning Network requires solving real- world distributed systems problems that are unprecedented. It's much more complicated than deploying a blockchain with a larger block size. In addition, opponents of Lightning Network suggest this will lead to a centralized banking system of being constructed on top of Bitcoin. Opponents of Lightning Network fear that instead of a decentralized payments network, the world of a Lightning Network would be a lower-cost version of the present-day financial system; a world in which JP Morgan and Blockstream would partner up to battle Coinbase in a decentralized, but actually centralized war for control of the unbanked. -
Company Overview
October 19, 2018 250845436 Cryptocurrency | Victoria, BC | Founded: 2014 | Employees: 60 | https://blockstream.com/ PHONE: N/A WIKIPEDIA: https://en.wikipedia.org/wiki/Blockstream BLOOMBERG: https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=273952098 LINKEDIN: https://www.linkedin.com/company/blockstream/ COMPANY OVERVIEW Blockstream is a dual-mission blockchain development company, looking to simultaneously improve the state of the art in blockchain technology while identifying opportunities for application and commercialization of such developments. Blockstream aims to make significant contribution to the blockchain ecosystem through its open- source development of blockchain infrastructure as well as industry software solutions. SENIOR MANAGEMENT Adam Back: Co-Founder & CEO (2014-present). Currently: Applied Cryptographer (independent), working on hashcash, committed transactions, homomorphic values, and researching blockchain decentralization and scalability (2010-present). Education: PhD Computer Science, University of Exeter (1995). Pieter Wuille: Co-Founder & Core Tech Engineer (2014-present). Previously: Site Reliability Engineer, Google (2012- 2014); PhD Researcher, K.U.Leuven (2007-2011). Education: PhD Computer Science, K.U. Leuven (2007). Samson Mow: Chief Strategy Officer (2017-present). Previously: COO, BTCC (2015-2017); Director of Production, Ubisoft (2009-2011). Currently: Founder and CEO, Pixelmatic (2011-present). Education: BBA Management Information Systems & Marketing, Simon Fraser University (2002). HISTORY Blockstream was founded in 2014 by Adam Back, Pieter Wuille, Greg Maxwell, and a group of other prominent blockchain developers with the goal of accelerating blockchain development and its commercial applications. Several of the founders were involved in the original development of Bitcoin.1 Since the inception of Blockstream, it has launched several products, established major business and technical partnerships, raised two rounds of funding, and expanded its reach internationally.