The Essence of the Blockchain Technology and Cryptocurrency 858

essence of blockchain and cryptocurrency

In the last couple of decades, technological progress has accelerated its full-scale expansion on pretty much all spheres of human life. Every year there appears something new that can change the world and make it a little easier and more efficient. One of such inventions is the technology of blockchain and the new payment system created on its basis – cryptocurrency. In this article, we will try to explain what the blockchain technology is and why cryptocurrencies will change the world in the next 5-10 years.

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

  1. The essence of the blockchain technology
  2. Cryptocurrency types and their difference from other payment systems
  3. How are coins extracted?
  4. Forecasts for the cryptocurrency market
  5. Conclusion

1. The essence of the blockchain technology

Blockchain is quite a young technology, the first application that was launched on its base was Bitcoin, thus, blockchain is often referred to as a purely transactional network. In fact, the practical application of this technology is unlimited. Now there are blockchain applications that work in the fields of logistics, medicine, law, trade, rent, etc.

In short, blockchain is a chain, which consists of a large number of blocks, where various information can be stored. Each subsequent block stores data about each previous one in an encrypted form. The uniqueness of the technology lies in the fact that the entire register of data is decentralized, and its copies are simultaneously stored on tens of thousands of computers around the world. This provides the highest level of protection from third-party interventions. The data stored in the system is almost impossible to compromise, replace or delete.

Let’s review an example of where you could introduce a blockchain system. In order to achieve full transparency in the presidential elections (parliament, senate, etc.), they can be held on blockchain. If the government of any country dares to take such a step, it will be possible to consider that these are the first 100% non-falsified elections in the history of mankind. The technological base is already there, the matter remains for the world leaders, but most likely they will not be quite happy about such prospects.

With the help of this technology, intermediaries can be removed from the chain of interaction between buyers and sellers of goods and services, which makes cooperation more profitable and effective. The technology of blockchain has a great future, many analysts compare its importance to humanity with the invention of the Internet. It will be able to fully reveal its potential in the third decade of the 21st century.

2. Cryptocurrency types and their difference from other payment systems

As it has already been mentioned above, cryptocurrencies became the first mass applications that were built on the basis of the blockchain technology. The first one was Bitcoin, but in almost 10 years since its creation, about 2500 different coins and tokens having different value and performing different functions have been released. Some coins are designed purely for making payments, others can act as the domestic currency of a certain application, the third are able to guarantee dividends from developers for their holders. Types of coins are too numerous, you can read more about them in our article.

The main difference between cryptocurrency and traditional payment services is their decentralization. That is, coins do not have a specific center that can monitor the network. All participants of the system interact on the principle of equality, where each member of the community acts as a user and as a server at the same time.

Advantages over traditional payment systems:

  • Significant reduction of the commission and time of international transfers due to the absence of intermediaries. For example, a transcontinental payment for $99 million was recently made in the Litecoin network, the commission was only 40 cents, and the transaction took 10 minutes. Within the traditional payment systems, this would require 7-10 working days, and commission fees would be at least $100k.
  • Anonymity. Digital technologies both give us freedom and take it from us. Using a MasterCard or Visa, a person stops being anonymous. If you want, you can track the entire history of his/her purchases, his/her location, etc. Some cryptocurrencies guarantee total anonymity.
  • Absence of outside intervention. Any bank can freeze its client’s funds if it sees it fit. Since cryptocurrencies do not have a single center, such intervention in the work of individual wallets is almost impossible. Of course, it all depends on the type of wallet. For example, you can freeze your account at the exchange, but if the coins are on a hardware cold wallet, no one else has access to it, except its owner.

3. How are coins extracted?

Bitcoin is often compared with precious metals, in particular gold, because they have a number of similar characteristics:

  • limited amount (a total of 21 million BTC will be released);
  • the need for extraction (mining) and the gradual increase in the complexity of this process.

Some coins (such as Bitcoin, Ethereum, Litecoin, etc.) need to be mined. Let’s discuss what kind of process it is and how it works. So, coins are awarded to the miners who installed a certain amount of computer equipment and provided it for the system’s operation. You can obtain cryptocurrency in a variety of ways, even using a PC, but you should not wait for any serious earnings in this case. Miners often use more powerful hardware, such as video cards or ASICs. The computing power of miners ensures the operation of the system and the timely conduct of transactions.

4. Forecasts for the cryptocurrency market

It is worth noting that the market is now in a phase of deep correction in comparison with its peak values, which were observed in the January this year. But even if you look at the annual chart, you can see that the assets are showing good growth (about 250%). According to the two-year chart, the growth rate of capitalization is 21760%, and so on. So do not panic like most of the media. The fact is that there are many people who invested in late November-December 2017. Their outrage is justified, they lost 70-80% of their contributions, but it is unfair to make a conclusion from this that the cryptocurrency industry is collapsing.

Many analysts predict growth for this year by 20-30 times of today’s value. In general, analyzing the cryptocurrency market is a rather difficult task, and nobody can say for sure what rate will be at the end of the year. Let’s just say, there are no fundamental reasons for the collapse. As soon as the news background improves, the market should start to grow and possibly even reach new historical highs.

5. Conclusion

Many people interpret the technology of blockchain as a transactional-only network, but this is not true. The application spheres of this technology are numerous. Cryptocurrency is only the tip of the iceberg. Analysts predict the widespread introduction of decentralized applications in the 2020s.

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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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