Blockchain: What Is It in Simple Words? 833

alien blockchain

The word “blockchain” has recently become very popular, many people have heard about it, but not everyone understands what it means. We will try to explain the following things in simple words within the framework of this article:

  • How blockchain works?
  • Why is this technology considered a miracle of the 21st century?
  • Where can it be applied?
  • What problems are still to be solved?

So, let’s discuss everything step-by-step.

Contents:
(please click the topic to scroll down to it)

  1. What is blockchain in simple words?
  2. What is the blockchain system and how does it work?
  3. Where can you apply the technology of blockchain?
  4. Pitfalls of blockchain
  5. Conclusion

 

1. What is blockchain in simple words?

Etymologically, a blockchain system is a clearly-sequenced chain of blocks constructed according to predetermined rules that contain certain information.

If we do not dive deep into cryptographic terms, then there is nothing complicated in the algorithm of the operation of the blockchain technology. For the sake of simplicity, the system of blockchain can be compared with the accounting journal, which is found in the possession of tens of thousands of users simultaneously. This journal is constantly updated and does this in all its copies, each page refers to the previous ones. In order to fool the system and fake at least one record, you will need a titanic amount of processing power, since you will have to replace all copies. Theoretically it is possible, but practically, one substitution will cost its organizers trillions of dollars, so we will consider it impossible.

2. What is the blockchain system and how does it work?

The blockchain platform is a large number of blocks that are constantly updated and linked. These blocks are distributed among all participants through peers (similar to torrent, which is used by millions of people to distribute and download files).

Each unit has its own individual hash sum. This is a timestamp, it can be compared with the biometric data of a person (retina, fingerprints, etc.). The blocks are connected with great precision into a certain chain. Attempts to change the sequence of blocks will not succeed. The system detects it immediately, because the hash sums will not correspond to the original registry. There are several methods of protection against such interference in the technology of blockchain:

  • PoW, Proof of Work.
  • PoS, Proof of Stake.

blockchain scheme

3. Where can you apply the technology of blockchain?

By and large, everything can be recorded in the blockchain.The scope of this technology is potentially much broader than just a payment network.There is a large number of blockchain projects, which are used in various spheres of life. For example, the UAE government decided to transfer 50% of the document circulation to blockchain until 2022. Using this technology, you can store any data. You can conduct voting, polls in blockchain. The issue of falsification disappears by itself.

Another unique feature, which was born together with Ethereum, is smart contracts. With their help, you can get rid of legal paperwork and intermediaries. There is a virtual notary (Stampery project) that certifies contracts through the technology of blockchain.

We already know of several working cases of how blockchain has been successfully applied in the field of copyright protection (the Ascribe project). If we start to list all the things which can benefit due to blockchain, we will have to write the third volume of “War and Peace.”

4. Pitfalls of blockchain

Like everything else in this world, blockchain has two sides of the coin. The first one, revolutionary and promising, has already been reviewed by us. It’s time to talk about the flaws and problems that are in the arsenal of this technology.

  • In order to implement the technology of blockchain everywhere, it is necessary to completely rebuild huge established systems that have a lot of interested parties, and they will hinder innovations in every way. You will need a couple of years to fully switch to blockchain.
  • This technology is not yet very friendly with regulators. In order for the broad masses to begin implementing it everywhere, the trust is required that is provided by the legislative framework. So far, there is no single scenario for solving this problem.
  • Miners use a lot of energy to confirm blockchain transactions. In the future, when the blockchain system is implemented in a large number of spheres, the powers to maintain it will have to be many times bigger.

5. Conclusion

The blockchain technology is unique and has a good technological support. It can store a large amount of data that can not be compromised, destroyed or replaced. The help of smart contract technology makes it possible for the agreements between two or more persons to happen without the presence of an intermediary, the algorithm itself will monitor the fulfillment of the obligations of all parties.

In the nearest future, blockchain has every chance to become a new paradigm for the mankind, but it is still necessary to do a lot of work and solve some problems to make it happen.

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Football Fans Will Soon Be Able to Buy Tickets for Games Using Blockchain 176

uefa launches a blockchain app

The UEFA wants the fans to have the smoothest experience ever. Right now, buying tickets for football matches is one of the most problematic areas: tickets are often falsified and stolen, moreover they are very hard to get. That’s why the organization is researching new technologies to fix the problem.

UEFA has recently announced about the testing of blockchain for developing a ticketing app. The app works via bluetooth on electronic devices and will be used when entering the stadiums.

The report said: “Fine-tuning and improvements took place at several test events, and the system was first used for 50% of the tickets distributed to the general public for the 2018 UEFA Europa League final between Atlético and Marseille in Lyon.

The Association will keep on developing its blockchain-based app, and, hopefully, football fans will soon have an opportunity to use it.

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Forbes Published 5 Main Blockchain Tendencies for 2018 780

blockchain trends

Blockchain is one of the most rapidly developing technologies of all times. Its main features (speed and transparency) earned recognition and approval from businesses and companies from all over the world.

Forbes has conducted a research and established 5 major paths that the blockchain is likely to follow this year.

1. Companies actively implement blockchain. For example, we have recently reported about the pilot version of election in Ukraine conducted on blockchain.

2. Implementation of this technology follows a thorough research. With blockchain being fairly new, the more conventional fields that are not related to digital technologies or computer sciences treat it very carefully. For example, the Stanford University created a research center for possible introduction of blockchain in the future.

3. The hype is going to fade. Blockchain has been marketed as a panacea for quite a while. Many people were sure it would help to solve major world problems. However, the results coming from this technology, though being mostly beneficial, are not as phenomenal as everyone thought they would be.

4. New and smaller projects are more likely to implement blockchain since they are more adaptable to changes and upgrades. Huge companies like Amazon find it way more difficult.

5. The personal information on people and other important data will be secured a lot better with the help of blockchain. Scammers never rest, however, blockchain will ensure that they have the hardest time ever hacking and stealing.

Thus, we can definitely see a lot of potential for blockchain. More and more companies choose to implement it. Hopefully, this technology will keep flourishing and bring benefits to those using it.

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Playboy Accused a Crypto Firm of Fraudulence 731

playboy is suing a crypto company

Playboy Enterprises submitted a lawsuit to the court of LA against the Canada-based company Global Blockchain Technologies. The plaintiffs claim that the abovementioned enterprise violated the contract concluded between the companies and refused to liquidate the damages ($4 million).

GBT was supposed to assist Playboy with implementing the blockchain technologies through an intermediary service. The firm, however, denies the accusations. According to The Los Angeles Times, GBT’s representative claimed:

Global believes it has a strong defense to the action and will be vigorously defending same.

We would like to remind that Playboy readers might soon get an opportunity to pay for it in cryptocurrency.

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Facebook Is Not Going to Cooperate with Stellar 700

facebook and stellar will not be partners

As we reported earlier, Internet was full of rumours that Facebook was exploring the possibilities of the blockchain technology and wanted to outrun everybody else in this field. The news has neither been officially confirmed or refuted by the representatives of Facebook.

Meanwhile, the Business Insider mentioned in its publication that the blockchain team of this social network was negotiating with a couple of potentially promising projects, one of them was supposedly Stellar.

However, this time the response of Facebook was quite immediate. Its representative said:

We are not engaged in any discussions with Stellar, and we are not considering building on their technology.

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Algorithm of Action for Victims of Scam ICO 1226

scam ico

The market for initial placement of coins is saturated with fraudulent projects, which initially promise to “change the world”, but after receiving funding, they stop being in touch. There are, of course, those which simply are not able to fulfill their obligations, and the product for which the investors’ money was spent is not necessary for anyone. Some particularly brazen scammers removing their site, leave on it not quite censorship messages, as it was with the Lithuanian startup, which wanted to “bring the blockchain” into the vegetable and fruit industry.

In this article, we’ll talk about what you need to do in order to get your money back if you have already invested it in a fraudulent ICO.

Contents:
(please, click the topic to scroll down to it)

  1. Is it real to return your money if you’ve invested in a scam ICO?
  2. What to do in the beginning? Collect evidence
  3. Who to sue?
  4. What do you need to know about the court?
  5. Conclusion

1. Is it real to return your money if you’ve invested in a scam ICO?

As practice shows, surely, there have been similar precedents in history, but to a greater extent they concern only the United States and Canada. For example, in 2017 on the initiative of the SEC, the founders of the scam project Munchen returned 15 million dollars to their depositors. Another example, the organizer of the cryptostart PlexCoin Dominic Lacroix was arrested, sentenced to 8 weeks of imprisonment, and fined personally for 10 thousand, and his company for 100 thousand dollars.

The Securities Commission is actively working in this field, but, unfortunately, outside of North America it is not yet particularly developed. For example, in the CIS countries no ICO scammers have been caught yet. But, despite this, there is still a chance to get your money back. Please read this material to know what to do in such an unpleasant situation.

2. What to do in the beginning? Collect evidence

So, unfortunately, you have already realized that you gave your money to criminals, what should you do? To begin with, you need to collect as much evidence as possible:

  • screenshots of correspondence in Telegram or other messengers;
  • copies of e-mails;
  • white paper and road map of the project.

If you personally talked on the phone with the organizers of the ICO, then you need to contact the provider to give you a printout of your calls. If you have a personal contact in offline, you must specify the place, date and time of the meeting. If this happened in a public place, it is likely that the fraudster’s face has got into the surveillance cameras.

3. Who to sue?

The overwhelming number of ICO projects has a similar structure. Often, in order to start the production and sale of digital tokens, the organizers register a special issuing company. As a rule, they are created in the Seychelles or the Cayman Islands or in Estonia and Singapore. Unfortunately, finding out data about an issuing company is a rather difficult task. The only place where you can find out which legal body is in charge of this project is an agreement to sell tokens or Token Sale Agreement.

But, it is worth noting that a registered issuing company cannot conduct operational activities, and it is even more complicated to find any information about who conducts it than about an issuing company. Of course, you can try to look for tracks through the project team, but if the organizers of the ICO have created a scam from the very beginning, then they hardly indicated their real names there. Most likely, charges will have to be raised against the issuing company.

4. What do you need to know about the court?

The good news for victims of fraudulent ICO is that there are virtually no “loopholes” in the world where financial criminals can remain in the shadows. Banks from different countries of the world cooperate with each other and transmit information about the movement of money; therefore, to hide a large amount of stolen money every year becomes more difficult.

The bad news is that defrauded investors can demand financial compensation only through local courts of the countries in which the issuing company is registered. Litigation is not a cheap pleasure:

  • Estonia – 7-8 thousand euros;
  • The Cayman Islands – 30-50 thousand dollars;
  • Singapore – 80-130 thousand dollars.

These figures do not include government fees and other related costs. In order for “battle to worth the blood,” the amount of lost funds must significantly exceed the costs associated with the court. An alternative way to save money in this matter is to file a collective claim. For this it is necessary to collect in one place a certain number of the same deceived investors and to divide the costs equally.

5. Conclusion

There are a lot of scam projects on the ICO market, so it’s quite difficult for an investor who is starting not to get bogged down by criminals. But even if you have become a victim of swindlers, albeit low, but still there are the chances of getting your investments back. It is necessary to adjust to a lengthy lawsuit, which will also require financial injections from your side.

How to Spot a SCAM?

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How to Remove Scammers from the ICO Market? Review of ILP Funding 1021

ilp as a solution of scamming

The ICO market is developing by leaps and bounds. If for the whole of 2017 all start-ups attracted a little more than $3 billion, then just for 5 months of 2018 this figure reached 13.7 billion. This method of collecting investment is fairly simple and very convenient for all parties. But it has a downside: the fact is that along with honest teams in the market there are a lot of scammers who simply take money from trusting investors. An unprofessional investor has a much higher probability of getting trapped than getting a profit. The ICO market does not have any administrative control, regulatory rules and verification. In this article we will talk about one of the options for solving this problem, namely ILP funding.

Contents:
(please, click the topic to scroll down to it)

  1. What is ILP?
  2. The main advantages of ILP
  3. Forecasts for ILP
  4. Conclusion

1. What is ILP?

This alternative to IPO in the crypto world (and not only) was first proposed by the international company Tokenote. The abbreviation ILP stands for Initial Loan Procurement. To eradicate fraudulent schemes, all participants (both borrowers and creditors) undergo a procedure for verifying the identity through a digital ID. Only after this the borrower can create smart contracts, and creditors (investors) make investments. Directly crowdfunding takes place on the Blockhive platform, where internal currency is the HIVE token. The main idea of ​​the developers is the modernization of the ICO market and the elimination of its main shortcomings.

2. The main advantages of ILP

  • Combining the simplicity of the ICO and the legal responsibility of the parties. Clever contracts in this concept are signed by means of a digital signature, so they have legal force, and then they are stored in the blockchain.
  • All procedures meet the necessary requirements of international law, therefore ILP provides for prevention of money laundering schemes. This is achieved through verification and authentication of all participants in the process.
  • One of the main differences between ILP and ICO is the lack of funding based on tokens. The fact is that within the ICO, start-ups, in pursuit of initial investments, can release an unlimited number of tokens, creating a glut in the market. In ILP, there are loans, not tokens, so the problem of inflation is solved by itself.
  • Due to the fact that investments are fixed in the legal field under the guise of loans, they cannot be taxed. This is a huge plus, as in our time in many countries there are quite impressive taxes on the cryptocurrency.
  • Within ILP, investments are protected from speculative schemes, as investors derive their profits from the company’s real revenues, rather than from the artificial increase in the price of tokens.
  • ILP funding need not necessarily be related to cryptocurrencies, this method of attracting investments is much more universal than ICO (private companies, government structures, etc.).

3. Forecasts for the development of ILP

This method of issuing digital credits can potentially have a great future, since ILP is as simple as ICO, but it has a much greater range of functions, and is also in the legal field. For this reason, ILP is unlikely to be prohibited even in such countries as China, where the ICO is banned.

4. Conclusion

The ICO market is certainly one of the most highly profitable investment instruments in our time, but due to the lack of regulation, there are a lot of scammers here. A novice investor has virtually no chance of succeeding in this field. ILP is one of the solutions to the problem of fraudulent schemes in this area.

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