Tag Archives: blockchain

Blockchain – Breaking It Down

The hottest word in technology is blockchain. Whether you have heard of  it or not you will be affected by it, now or in the future. But what is it?  How will it change things?

What is Blockchain?

A block is a record or log of new transactions. This log can track things like the the creation of cryptocurrency, changes to medical records, product manufacturing from start to finish or banking transactions. After each block is completed it’s added to the chain, creating a chain of blocks, hence a blockchain.

Information on the blockchain is also available to everyone. A block chain is not hosted on a single computer or server. Because of this any changes or transactions are immediately visible to everyone. So, as you can see a blockchain is very hard to falsify because everybody can see the changes and immediately notice if something is wrong or fraudulent. Blockchains are simply a public ledger that makes everything  traceable.

Blockchain was invented in 2008 to support transactions using digital currency. If you buy something using a cryptocurrency, send some to a another person or sell it, your transaction is publicly visible on the blockchain. Other people may not know who you are but they can see exactly how much has been transferred from one person to another.

Blockchain and cryptocurrency like Bitcoin are growing as an alternative to traditional banking. Users do not need a bank to move money from one location to another or to verify the transaction. This is sometimes referred to as frictionless transactions. This means a transaction can be completed without a paying a fee to a bank or government.

How is Blockchain being used?

Although blockchain is not yet in widespread use it is expected to change industry and commerce in a revolutionary way. It is considered a disruptive technology that can easily turn the economy and society upside down. As such, it is being carefully examined and introduced.

Blockchain and your vote.

Blockchain technology can can make electronic vote counting un-hackable. Voter fraud can be eliminated by securing the system during voter registration. Blockchain can secure voter’s identification and prevent vote tampering. Blockchain creates a permanent and public ledger of votes cast and tallied that provides for more fair, secure and democratic elections around the world.

Follow My Vote is one new start up company that is trying to apply blockchain to our voting systems.

Blockchain and your identity.

Blockchain is expected to make major difference in securing your digital identity. Right now billions of dollars are being lost due to online fraud and identity theft. Using blockchain technologies will make tracking and managing digital identities secure and efficient. The result will mean a seamless sign-on and reduced fraud. This is vitally important when it comes to banking, healthcare, national security, citizenship documentation and e-commerce. 

Currently password based systems rule the Internet. Blockchain technology is based on identity verification using  public key cryptographyUsing blockchain identity authentication the only question is if the person has the correct private key. It is understood the key holder is the owner and the exact identity of the owner is irrelevant. The only drawback to this system is, as always, the human factor. People share passwords they may begin sharing encryption keys.

Blockchain identity verification can allow you to securely apply for jobs, file for medical and other various benefits, remotely open bank accounts, verify emails and social media activity and, as mentioned earlier, secure voting.

Blockchain for business.

Blockchain has the ability to make sure corporations are playing by the rules. Records stored using blockchain suddenly become difficult, if not impossible, to alter.This factor means that contracts between people or between corporations are far less open to interpretation of manipulation. These are know as smart contracts.

Smart contracts are legally binding, programmable digitized contracts entered on the blockchain. Programmers can create legal contracts as variables and statements that can release funds using the bitcoin network.

An example would be if one company wanted to pay another company a million dollars at a specific time when the preconditions of the contract are met. The conditions, payout, and details would be programmed into a smart contract. Once all conditions are satisfied the money would be sent to the appropriate party as terms of the contract dictates. Computer control over contracts can increase business efficiency and make the legal system more equitable.

Blockchain is coming to a grocer near you.

Companies in the agriculture industry are using blockchain  to track the movement of produce through the supply chain. This means the farmer can track his bell peppers from the time they leave the field to the time you leave the grocery store with them. Blockchain creates a direct link from the farmer to the grocer ensuring they are paid fairly for their produce and allowing grocers to verify that they are getting what they’ve paid for. Blockchain use in agriculture means you know exactly where your food came from and who handled it. Keep in mind food fraud is growing problem. Is that fruit really organic? Is that fish really sea bass or is this olive oil really olive oil? Blockchain makes sure you get what you think you are getting and paying for.

This technology can also increase food safety and security. Blockchain brings transparency to the supply chain allowing retailers, farmers and consumers to identify and remove bad actors and poor processes. Blockchain can determine the source of food born illnesses quickly in the event of a illness outbreak saving time, money, and lives.

Blockchain and transportation.

Another way blockchain will affect your life is transportation. Car makers are using blockchain to make sure the parts that go into your car meet their standards and come from a legitimate source. Counterfeit parts are a big problem on the secondary parts market. These parts could possibly end up in busses, trains and even aircraft endangering millions of lives. Parts can now be tracked from the manufacturer to the user eliminating any possible counterfeiting.

Now you know.

 

 

 

 

 

 

 

 

 

 

 

 

Is Cryptocurrency for African-Americans?

Is cryptocurrency for African-Americans? Are we in on the game or are we just too cautious with our money to get in right now? Can cryptocurrencies like Bitcoin help the Black economy? Are we ready or even willing to get in the digital cash game? I said it before and I’ll say it again; Black people don’t play when it comes to money!

From Black celebrity endorsements to black people actually mining cryptocurrencies the game is starting to open up and awareness is growing. But are we truly on board?

Black celebrities are pushing cryptocurrencies and initial coin offerings or ICO.   An ICO is an unregulated way to raise money for new cryptocurrencies. ICOs are used by startups to get around the rigid rules and laws associated with  the regular capital-raising process. In other words they can raise money without any rules or laws to obey. This makes ICOs an extremely risky investment.

Risky investments do not appeal to African-Americans. “African-Americans are risk-averse,” says Deborah Owens, formerly of Fidelity Investments. Owens calls herselfAmericans Wealth Coach.”  Owens told Forbes.com that, “So, one of the major reasons they have less in retirement savings is they are ultra-conservative, particularly African-Americans who work in the public sector and nonprofit organizations.”

Ultra popular DJ Khaled, alongside boxer Floyd “Money” Mayweather are pumping up Centra Tech. Chief operating officer for Centra Tech, Raymond Trapani, told Fortune.com that Khaled and Mayweather are working as  “official brand ambassador and managing partner” of the company. But the government has issued warnings about their investment advice in digital currencies.

Mayweather, in addition to Centra Tech, he is also associated with ICOs from Stox.com and Hubii Networks. Critics say both companies are risky blockchain technologies and neither has produced a product, service or profit.

Other Black celebrities involved in cryptocurrency include rapper Snoop Dogg, Nas, former Spice Girl Mel B, actor Donald Glover, Seattle Seahawks cornerback Richard Sherman, former NFL wide receiver Chad Ochocinco, actor/comedian Jamie Foxx,  and WuTang Clan’s GhostFace Killah.

Needless to say these are fairly wealthy artists and athletes who can afford to play in the cryptocurrency casino and help ICOs raise billions of dollars. But is their involvement even legal?

The U.S. Securities and Exchange Commission (SEC) is looking real hard at these celebrity endorsements. The SEC issued a statement to “celebrities and others” who use social media networks to encourage the public to purchase stocks and other investments.

The statement advises celebrities that, “These endorsements may be unlawful if they do not disclose the nature, source, and amount of any compensation paid, directly or indirectly, by the company in exchange for the endorsement.”  Put simply these celebrities need to come clean and let people know they are partners or investors in the company they are pushing.

But are Black people buying cryptocurrencies? Edwardo Jackson of Blacks in Bitcoin believes its still early and that African-Americans need to get in the game and get in the game now. Jackson told TheAtlantic.com, “Can you imagine what it would have been like to own a piece of email technology in 1994? That’s what Bitcoin is like right now, and it’s only getting bigger.”

Along with Black celebrities Jackson could be opening the door for minorities to get into cryptocurrencies. Research in 2014 showed that black people and minorities in general were not aware of the cryptocurrency phenomenon.  But now the African-American community is becoming more aware of digital currency and the wealth it can produce. Black people interested in Bitcoin and possibly investing in digital currency are beginning to form groups to study this phenomenon. One MeetUp group in Atlanta has over 180 members and the interest appears to be growing. Sources of information for black people are also growing as evidenced by Jackson’s blogBlacks in Bitcoin.”

Can digital currency help the African-American community? An interesting fact about Black people in the digital age is our love of mobile technology. Black people have become early and enthusiastic adapters of mobile technology. We are most likely to shop and access the Internet using smartphones than white people. So the idea of using a digital currency is not out of the realm. Another interesting fact is that Black communities, low income neighborhoods, are severely under-banked.

Chief market strategist for ConvergEx Group, Nicholas Colas believes digital currency like Bitcoin can make a difference. Colas sees the currency filling the hole where banks are not in these communities. Colas cited a 2013 Senate committee letter from then-Federal Reserve chairman Ben Bernanke. Bernanke did not endorse digital currency but agreed low-cost transactions could benefit low income, under-banked communities. Providers of pre-paid cards and payday loans often thrive in low income communities.  Colas added, “That’s where the promise is for the African American community, because in a finished form, it allows for a cheaper money-transfer system than anything that the current financial system can provide.”

 

African-Americans are beginning to take notice of digital currency and are venturing in with their own brand of digital currency. A Black owned digital currency company, BitMari, has emerged. Founded in 2015, BitMari is a Pan-African blockchain company seeking to secure a piece of the action in the billions of  dollars sent to Africa each year. BitMari is facilitating the transfer or remittance of money using the Bitcoin technology into Africa.

 

 

 

 

$Guap Black Owned Digital Currency

Another Black owned digital currency is $Guap launched by tech visionary Tavonia Evans. The ICO for $Guap is aimed at recycling wealth within the Black community. $Guap is intended to leverage the one trillion dollars in Black spending power. $Guap will jump on the cryptocurrency wave by rewarding African-American consumers for supporting businesses that support them.

Now you know.

 

 

Cryptocurrency – What’s It All About?

What is cryptocurrency? Or you may call it Bitcoin. Where does it come from? How does it work? Is it real money? In case you haven’t heard we are in the midst of a monetary revolution. Many people are raving about Bitcoin. Some say it’s the money of the future. Others are saying it’s a scam or worse. So what’s it all about?

First of all lets clear up the definition. Bitcoin is cryptocurrency but not all cryptocurrency is Bitcoin. As a matter of fact there are as many as 1,000 different brands of cryptocurrencies. Bitcoin is just the most valuable.

What is Cryptocurrency?

Cryptocurrency is a digital form of currency that is different from real money. Money or currency is produced by banks and nations who create the money’s value based economic strength. This money is managed through a central banking system of that nation.

How is cryptocurrency different?

Transactions of traditional money are controlled, taxed and tracked by banks and nations.  Cryptocurrency transactions are made with no banks or governmental interference.  Some economist and investors like to say that transactions are frictionless. Cryptocurrency users are anonymous . So essentially cryptocurrency is stateless money with no banks and the users are completely unknown. That is until they change Bitcoin into real cash. 

Where did cryptocurrency come from?

Satoshi Nakamoto, the inventor, created Bitcoin in 2009. He has never been seen. No one even knows who or where he is. He may not even be a single person but a group of programmers. No one really knows. So cryptocurrency’s origin is a mystery. However, some believe that the National Security Agency has identified him. As usual the NSA has declined comment.

How is it created?

Cryptocurrency is created or “mined” using computers to solve incredibly complex math problems. Performing this work eats up a lot of electricity. So much electricity that you could never make a profit with the average computer. Cryptocurrency “miners,” as they are called, have begun building their own computers or hijacking other people’s computers to create Bitcoins. This has become known as Cryptojacking.

Mining a Bitcoin is not easy or cheap. Bitcoin’s value is about $6,000. How many Bitcoins would you have to produce to deal with a monthly $6,000 electricity bill and still make a profit? 

After a computer solves a series of problems it becomes known as a block. The blocks is then verified by other users and, once confirmed, are added to what is called the blockchain. The blockchain grows rapidly with a new block being added about every 10 minutes. A blockchain is a record of the Bitcoins created. It also records Bitcoin transactions that can never be changed. The blockchain never ends and is not hosted in single location making it immune to hackers.

How do you store or spend Bitcoins?

Bitcoin transactions move between users like email. Each transaction is digitally signed using cryptography and goes to the entire Bitcoin network for verification. These transactions are open to the public and can be found on the blockchain. All Bitcoin transaction leads back to the point where the Bitcoins were first mined.

Bitcoins are kept in a bitcoin wallet or the digital equivalent of a bank account. You can download the Bitcoin wallet from the Google Play store or iTunes. Your wallet allows you to send, receive and store Bitcoins. 

To complete a Bitcoin transaction you need two things; a public encryption key and a private encryption key.

Public keys or Bitcoin addresses, are random sequences of letters and numbers that work the same as an email address or username. Public keys are safe to share. You must give your Bitcoin address to receive Bitcoin. The private key must keep secret. This private key allows you to spend the Bitcoin.

Is Bitcoin real money?

Well, that is where Bitcoin may run into problems. First of all Bitcoin must meet the current standard of what money is. There are four basic standards for money.

ScarcityThere can be a only a limited amount available to secure its value. There can only be 21 million Bitcoins in the world. Right now there are about 9 million Bitcoins. Once it reaches 21 million no more Bitcoins can be mined.

Durability It must stand up to constant handling with no maintenance or special treatment. Bitcoin is completely digital and is never actually touched but human hands. However, Bitcoin is vulnerable. User error can cause the loss or destruction of Bitcoins. Users have lost or forgotten their private key making access to the currency impossible. Recently a a single user error caused the destruction of over $300 million worth of Bitcoin. So durability is an issue as well as security.

FungibilityIs every Bitcoin worth the same.  Let me make this simple for you. According to CoinMarketCap.com there are 1,037 different cryptocurrencies available. So not every one is worth the $6,000 I spoke about earlier. 

PortabilityCryptocurrency can be carried anywhere you carry your smartphone just like cash. So it is portable.

Breaking It Down.

Cryptocurrency is growing in acceptance but is not yet considered a viable currency. Its value is unstable and it is considered  an unacceptable risk by most financial experts and the coin of the future by others. In addition, governments are now examining the cryptocurrency phenomenon. Its anonymity makes it useful for crimes such as drug dealing, terrorism, money laundering and tax dodging. So the future right now depends on the view world governments take. A single law or crime could bring the whole thing to a halt or change the very definition of cryptocurrency.