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Bit:Basic ตอนที่ 1 แนะนำ Miner, Pool, Block, Chain, Algorithm

Welcome to Bit Investment Channel This is the 1st episode for Bit:Basic series I will tell the story via Minecaft Game How it work in Bitcoin or Blockchain World? So, I'd like to introduce Mr Bit Investment He is a miner He will explain you how Blockchain and Bitcoin work Behind him is Bit Investment Mine Mr

Bit Investment live in Bit Investment Pool How is Blockchain work? First of all, I'd like you to know the block Block in Blockchain world will store transaction information Then the system will generate new block append to the last block like chain That's why we call Blockchain Because the block append pattern like chain Once, new block append Information in the old block cannot modify anymore

Then, here is the tool for miner to mining I imply pickaxe such a mining machine Golden pickaxe is SHA256 mining machine Iron pickaxe for mining Litecoin Next one for mining Monero Stone pickaxe for mining Zcash Diamond pickaxe for mining Dash For each algorithm will mine only particular coin It's cannot mine across algorithm Next VDO we will understand Where miner get the money from? What is block reward? What is transaction block? See you

Free Thoughts, Ep. 212: Your World on the Blockchain (with Brock Cusick)

Aaron Powell: Welcome to Free Thoughts, I'm Aaron Powell Trevor Burrus: And I'm Trevor Burrus

Aaron Powell: Joining us today is Brock Cusick He's an attorney working in the foreign exchange and derivative markets Welcome to Free Thoughts, Brock Brock Cusick: Hi Aaron Thanks for having me on

Aaron Powell: What is a blockchain? Brock Cusick: A blockchain is a new kind of database That's how I think about it It's really the core of what Satoshi [00:00:30] Nakamoto, the inventor, of Bitcoin really invented He If you think about Bitcoin, it's decentralized money We've had decentralized money before Gold coins are decentralized money, and they've been around for thousands of years It's really the blockchain which is a new type of database that was his core invention

It's really what's [00:01:00] creating a lot of change in the world right now Trevor Burrus: It's decentralized but what does it allow us to do? Aaron Powell: Or just give us a [crosstalk 00:01:10] Just tell me a sketch of how it works Trevor Burrus: First that, and then we get to the application Brock Cusick: The thumbnail sketch, the blockchain, if you think about a database, a database is like a ledger, like an Excel spreadsheet If you think it's something regular most people might be familiar with

[00:01:30] It's just a list of entries with arbitrary data that you can write to them Usually if you've ever tried to work with a spreadsheet on someone you have an issue of version control where you could put things in your spreadsheet and then they could end up changing it If you want to trust this spreadsheet is accurate, the way I sort of trust my to do list at work, which I maintain in this spreadsheet, I don't share it with anyone, [00:02:00] because I don't want anyone else going in there and deleting things off my to do list that I need to do, because otherwise I'll forget and they won't get done When you have databases you usually have to have a trusted person to maintain and run the database and verify that any changes made to the database are appropriate The blockchain is new in the sense that it can be an open [00:02:30] network, which means anyone in the world can access it, anyone in the world can attempt to write into it and yet it still maintains its integrity even though it's open to the entire world

That's what really new about it and that's what really fascinating The way it works is it relies on a number of different underlying technologies to make this work Basically it uses [00:03:00] cryptography which is asynchronous Let me back up a little bit It uses cryptography which is very easy to check but very hard to do to verify that transactions that enter into the database are appropriate, so that you can send a transaction to the database, to the blockchain, and it can be incorporated according to the rules

It's arranged in such a way [00:03:30] that if you want to send an incorrect or I could say a transaction that breaks the rules and you want to fake it, the way you have to do it, because of the way the blockchain is set up, is you have to burn an amount of electricity about equivalent to what the country of Yemen uses in a day to falsify one transaction Trevor Burrus: That's what you mean by hard to do is just computing power? Brock Cusick: Yeah You can do it with computing power but [00:04:00] what you can do is falsify a single transaction The maximum payout of that falsification is whatever the value of the transaction is If you transfer $100,000 to someone, or $1,000 to someone, and then you want to transfer a false transaction, you want to move that money to an account you control instead of the other person

That's the maximum payout [00:04:30] The cost is always the electricity cost of the entire network Trevor Burrus: Just to make sure that I'm clear about his, because Aaron knows way more about blockchains than I do, and it's a little bit hard to put your brain around If we use a metaphor, for example, you talked about using a trusted ledger, held by a third party If I transfer money to you via my bank, that's depending upon the fact that [00:05:00] we trust the bank

You trust the bank and I trust the bank, right? Brock Cusick: Exactly, right Trevor Burrus: The blockchain takes the place of the bank or another third party by encoding a series of, again I might be getting this wrong, tell me if I'm wrong Coding a series of indicators of a transaction that is very, very distributed and hard to break, and therefore it verifies between you and me without having to have a third [00:05:30] party Is that kind of correct? Brock Cusick: No, you got it There is the ledger of the blockchain is, the blockchain is the ledger of all the bitcoin transactions that have existed since the software was implemented in 2007

What it does is it's run on thousands of nodes all around the world who don't know each other They all independently verify every attempted [00:06:00] transaction If you want to send money, send bitcoin from your account to my account, you have to submit a transaction to the ledger, you sign cryptographically with the same signature, the same public key cryptography that you used to receive the money in the first place You sign it and say, "I received [00:06:30] this money three months ago When I received it, this was the public key I used

Here I'm signing this transaction with the exact same public key" And you submit that to all the nodes globally They verify that it's the same public key They verify it's the correct digital signature Then as long as your transaction that you've submitted meets the rules of the bitcoin network, they record it to the blockchain

Aaron Powell: This brings up the nature [00:07:00] of this ledger and the nature that all of the transactions, including the addresses that the transactions were originating from and going to are stored in this public ledger that goes back to the very beginning Brock Cusick: Yes Aaron Powell: Brings up the question of privacy, because bitcoin often gets pitched as not just a better way to send money around but one that's couch more privacy [00:07:30] or less susceptible to having our transactions snooped on, but now our transactions are all happening in public I'm curious about that because one of the early applications of bitcoin, on of the early big uses of it was the infamous Silk Road where people were buying and selling drugs and all sorts of actually awful things too with bitcoins How private is it if you can log, if I sent Trevor 20 bucks, [00:08:00] you can log in and see that here is my wallet, here is Trevor's wallet and here is the $20 flowing to it? Brock Cusick: The privacy features of the base bitcoin feature set, just are like the core feature set have been definitely oversold by a lot of people who I don't think maybe understood exactly how the network works

Every bitcoin transaction happens in public, every bitcoin transaction is verified by every node, which [00:08:30] is open source software that anyone in the world can run If the IRS is running a bitcoin node, and they probably are honestly or the FBI is They just being part of the bitcoin network, they receive a copy of every single transaction that's submitted to bitcoin You have to register when you open your account at bitcoin It's an open network, you just have to download free software

It assigns you a random number I think the numbered accounts in Switzerland You [00:09:00] have a numbered account, it doesn't have your name on it, but once the authorities connect you to the numbered account, all the transactions in and out of that account are public record Trevor Burrus: Here is maybe a strange question, but I think it's one that a lot of people want to ask about bitcoin which is, what makes bitcoin valuable? Brock Cusick: It's rare Every commodity in the world that has a fixed quantity, there are some level of demand that meets that fixed quantity [00:09:30] and that supply and demand curve tells you what the price is

Things with higher demand and lower quantity are worth more, like gold Gold is rarer than silver, so gold is worth more than silver Gold has other qualities that make it useful as money That's true for any commodity, concrete, blacktop, tons of wheat, whatever What makes bitcoin rare though, that's somewhat [00:10:00] interesting, because if you think of bitcoin as a digital commodity, the entire reason that Napster works and the entire reasons that bit torrent works is you can copy digital files infinitely

Once something is a digital file you think of that as being infinitely suppliable You can make as many copies as you like and you can share them around the world for free Bitcoin is mathematically rare If you are familiar at all with the network you know that there are computers that are involved [00:10:30] in the network called miners The bitcoin miners, they are a global network of computers that are competing with each other to find an exceptionally rare number, and it's so rare that this huge global network of computers which all together has more computing power than google or Amazon or an of these companies

They only can find one of those numbers [00:11:00] every 10 minutes It's very simple for anyone with a very small low power computer, like a raspberry pie or your phone, or whatever This number is very simple for the small computers to verify how rare the number is

It's extremely hard, in fact, it's impossible, mathematically impossible to fake how rare the number is You can't just make up a number and hope it's rare It actually has to be rare [00:11:30] That rarity That rare number that's found once every 10 minutes is recorded to the bitcoin blockchain along with the transactions that people submit every 10 minutes

That's the people that are verifying You can submit, you could make up a bitcoin blockchain yourself, you can download the current blockchain, make a copy of it and then make a whole bunch of transactions and submit them, but you can't fake that rare number That's mathematically impossible [00:12:00] If some third party out in the world receives your copy of the block chain, and someone else's copy of the blockchain, they can look at those, the nodes that is appended to that block of transactions, and they can see which one is rarer, which one required more electrical power to discover and generate? That's how bitcoin's rarity is created and from there just simple supply and demand means that it's a commodity [00:12:30] and it therefore has a market price Aaron Powell: In finding and then the computer that finds those, that finds that number gets rewarded

That's what they are mining for is they are mining for bitcoins Brock Cusick: Right One of the rules of the network, and these rules are all agreed by, they are agreed socially by all the miners Everyone who participates in the network is essentially accenting to abide by the rules of the network by participating [00:13:00] One of the rules is that whoever finds this number, when you submit that block of transactions, you get to do two things, you get to create a few bitcoins for yourself

And you get to keep all the transaction fees that are in all the transactions that happened since the last rare number was discovered On average these rare numbers are found every 10 minutes That means you basically get to collect 10 minutes worth of the [00:13:30] transaction fees on the bitcoin network Trevor Burrus: You mentioned this previously but I might do like sort of fill in the history, you mentioned Satoshi Nakamoto A lot of people, I was hearing about bitcoin, because I ran in libertarian circles in 2010, 2011 and unfortunately did not buy any bitcoin even though people were telling me to

At that point it was like a dollar or something along those lines [00:14:00] Where did this come out of, was this some sort of dark internet place where so many people were mining these bitcoins? And also if I'm correct I believe that at beginning it was easier to mine bitcoins and it's getting progressively more difficult, correct? Brock Cusick: Yeah I don't remember exactly where Satoshi first posted about it I saw the post once but I don't remember the website Satoshi, it's a fake [00:14:30] name, it's a pseudonym, we don't know who the person is, although there is lots of speculations obviously

He just posted and shared the open source software And then from the open source community, ever since the beginning, lots of people have been involved and then Satoshi himself stepped out of development after a couple of years and hasn't been seen since It's now just in the world so to speak [00:15:00] Regarding your difficulty, you are absolutely right One of the rules of the network, the bitcoin network is that it wants to discover the rare number once every 10 minutes

That its goal Sort of like the federal reserve has an insulation target, the bitcoin network has a 10 minute block time target As more people compete to find this number, more computing power is added to the network [00:15:30] As that happens, the numbers get discovered more often If the average time for the discovery falls below 10 minutes, what happens is every two weeks the network agrees to adjust the difficulty upward, to get back to 10 minutes average block time

Aaron Powell: I think that answer, a couple of follow ups, but I think they gave us an opportunity to then pivot into [00:16:00] some of the other topics we are gonna discuss There is that 10 minute target and then there is ultimately a fixed supply of bitcoin, because the number of bitcoins you win for solving it halves every so often- Brock Cusick: Few years I think Aaron Powell: Yeah, but I think ultimately it will stop with what is it? 21,000,000 bitcoins in circulation? Brock Cusick: That's right, 21,000,000 Aaron Powell: Which is supposed [00:16:30] to be in the year 2040 roughly? Brock Cusick: Mm-hmm (affirmative) Aaron Powell: First, when that happens, when there is no longer any bitcoins to be mined and given that the bitcoin network is depending on these miners to effectively to maintain it, to process transactions and maintain the integrity of it

What happens then? Is there a reason for, because it's this enormous amount of computing power and it's a high cost, because you have to pay for the electricity for all of this on top of the equipment [00:17:00] What's the incentive for miners to continue to mine even after there is no bitcoins to be extracted from the virtual ground? And then also how does this play into There is a lot of controversy in the community right now, because there is supposed to be a fork of bitcoin network coming up in middle November

And part of that has to do with the amount of time it takes to process transactions has been going up [00:17:30] because the blockchain is limited in size and it can't keep up with the number of transactions as bitcoin grows What's happening in the bitcoin world right now to address those issues and then how do the things that are happening impact this question of what happens after 2040? Brock Cusick: It's actually really great that you ask those two questions together because they are very [00:18:00] related Satoshi when he created bitcoin, he understood back at the time that you need to reward the miners in order for them to provide the service, because the miners aren't in the bitcoin business for the benefit of themselves to have this digital money They are in it to make money for themselves, it's a business for them You have to reward them somehow

Over the [00:18:30] long term, any sort of payment network really needs to make itself profitable based on the transaction fees, because people use the network and their usage is what cost money and so the most, the incentive structure that's most aligned with the users is the charge rate transaction fee Back in the day, back when bitcoin was first started, and hardly anyone was participating in it [00:19:00] For the most part no one really needed bitcoin, no one needed to pay money for this It was all just sort of for fun This is before it really had a market value

It wasn't generating any transaction fees What Satoshi did and he also did this to distribute the 21,000,000 widely is he put all 21,000,000 bitcoins in a potential either pool [00:19:30] for miners to reward themselves It started back in the day, in the very beginning that every time a miner found the rare number to mine a block, they got 50 bitcoins and basically zero transaction fees, because no one was paying transaction fees Over time these two, the whole design of the network was to eventually have those two numbers switch places Where the mining reward would be [00:20:00] zero bitcoins, but the transaction fees would be high

That's what we are seeing, which is nowadays I think nowadays there is, I just looked it up and now I can't remember, something like 200 bitcoins per day maybe 250 in transaction fees are paid A bitcoin is worth $5,000 at the moment roughly, the price moves around That's [00:20:30] a lot of money Those are the transaction fees, and that's where we are now We might even be generating more money from transaction fees, than from the mining reward already

The idea is that by 2040, assuming bitcoin remains popular, assuming people keep using it, the transaction fees only go up from here That gets to your second point about the congestion on the network The reason that people are paying transaction fees [00:21:00] is because they want their bitcoin transactions recorded to the blockchain The miners get to choose which transactions to include in any given block, a 10 block of bitcoin transactions The miners are most inclined to include the transactions that hey, a transaction fee because they can choose

You have to realize then that the transaction fee is the market price [00:21:30] where all the users are competing to get into a given block and to have their transactions processed faster That's what driving up the transaction fees, that's what's creating the revenue from the miners, and therefore that's what securing the network If you expanded the capacity of the blockchain to the point where no one has to compete to get into a block anymore, no one's gonna really pay transaction fees, not very much The revenue of the network goes down and then the miners are gonna stop [00:22:00] putting as many computing resources or as much electricity into finding the number Now the rarity of the network itself is lower and the security of the users is lower

There is a real balancing act there There is a real balancing act that I think the developers and the miners, and the users are all trying to edge forward without any one of them getting too much advantage over the other, because if the miners are [00:22:30] too successful at keeping the number of transactions that you can include low, you drive up the transaction cost to the point where fewer people want to use bitcoin On the other hand if the users are too successful in getting the size of the transaction blocks expanded, then the transaction fees go down the miners quit and the security of the network degrades It's a balancing act Trevor Burrus: This [00:23:00] balancing act

It sounds like something that people are working through, but is this a problem? Is this something that is concerning people? I guess connected to this other question? Because I hear people kind of criticizing there are flaws in bitcoin that are gonna make it go down in value and not be the perimeter one anymore You have people creating other cryptocurrencies like Ethereum, or things like Ethereum [00:23:30] to deal with perceived problems in bitcoin, kind of the ones that you've discussed? Brock Cusick: I don't think of Ethereum as a real competitor to bitcoin The reason I say that is because, like I said, Satoshi Nakamoto invented the blockchain, to bring us back to the beginning, it's a new type of database, it's open, it's decentralized, it's trusted without any central third party being the person you are trusting His [00:24:00] first use case was bitcoin which is money, and the bitcoin network is optimized to be good at being money Ethereum is optimized to be good as a medium for computing

The developers at bitcoin, every time they face a trade-off or an engineering decision, they are gonna, obviously they can make mistakes, but they are gonna do their very best to make the decision that makes bitcoin better money [00:24:30] If the Ethereum developers are similarly focused on being the world computer, they are gonna make different trade offs They are gonna make trade offs that make Ethereum better as a computer Will Ethereum always have a market price? You have the ether coins on the Ethereum network? Yeah They should because you need to be able to pay for computers on the Ethereum world computer to do their job

Ethereum needs to have an internal market price Ethereum's [00:25:00] market price is a servant to the Ethereum world computer, whereas on bitcoin the market price and it's value as money is the end in and off itself I think that over the long term, because their designs will never fully converge, you'll have multiple blockchains, at least one per use case so to speak Trevor Burrus: What do you mean use case, when it's being [crosstalk 00:25:28]? Brock Cusick: There is the money use case, the computing [00:25:30] use case It's possible another coin come along that wants to be global internet money that would compete with bitcoin directly and maybe eventually supplant and replace bitcoin

I don't think it's likely just because of the lead bitcoin has and the market penetration it has, but I admit that it's possible I don't think Ethereum is gonna be that, because Ethereum has a different use case Ethereum wants to be a world computer The designers are gonna make trade-offs Trevor Burrus: That's get to [00:26:00] the question which I think Aaron was gonna ask which is, if Ethereum is not money or you are kind of saying it's not as good for money, but it has value, that gets into the bigger topic here which is what is the blockchain good for that's not just money? Brock Cusick: That's true

The blockchain as I said is decentralized money has been around for a long time The blockchain is [00:26:30] what's new And the blockchain allows ledgers recordings that don't require a third central party to be the trusted party Obviously banks use ledgers, but they are hardly the only type of company out there that uses ledgers Lots of companies use ledgers, airlines have sky miles

There is also ledgers of [00:27:00] useful information like the phone book Everyone in the world, maybe not in the world but in each country, each jurisdiction, if you want to know someone's phone number, at least back in the day of landlines, you looked it up in the phone book The phone company was the central trusted party that maintained the phone book You could trust that when you looked up somewhere in the Yellow Pages or in the White Pages that that was the correct number That's an example of a ledger

That's an [00:27:30] example of a ledger If you heard any discussion out there about blockchain for identity, what they are essentially saying is, we can now make a phone book without a phone company You can now have a central phone book where instead of recording money transactions you record your phone number or your email address or some other personal data that you don't mind being public Now you've got a blockchain that's in the center there that's a trusted party and that's a trusted ledger You still have to find [00:28:00] an incentive model to make it work, so that the people out there have an incentive to maintain the ledger and to secure the ledger against being hacked

As long as that incentive model exists, you now have a different ledger, it's not a money ledger It's an identity ledger The blockchain, if you look out in the world and you think about where are there lists of names or other very important information that is [00:28:30] maintained by someone? They are basically just paid to maintain that list That's a potential target for blockchain disruption Aaron Powell: I want to eventually talk more about these, the kinds of industries that might be disrupted by this tech and the kinds of ways that this tech could invent new industries or really change the way that we do things

Before we get to that, we need to just go back to bitcoin for a little bit and ask about [00:29:00] the recent innovations in and around the bitcoin network that there are ways to do cool things on top of it or address some of the concerns that we talked about with transaction cost or speed or whatever else without embracing a different sort of coin or changing the underlying bitcoin protocol Two of the things that get talked about are [00:29:30] so called sidechains and then like level two protocols Brock Cusick: Yep Aaron Powell: What are those and what are some of the interesting things happening within those? Brock Cusick: Those are both very interesting They achieve different things

I'll talk about level two first if you don't mind The most common level two protocol that gets discussed a lot is called the lightning network As I mentioned before, the [00:30:00] bitcoin network can record, has very poor performance That's the trade off that was made for the decentralized trustless nature It's decentralized, it's trusted, but it only takes, it only takes in seven transactions per second globally

Everyone in the world who uses bitcoin has to share those seven transactions per second and there is billions of people in the world Obviously that's a problem if everyone wants to submit a transaction Bitcoin [00:30:30] at the moment is impossible to use as a way to say buy coffee, because there is just too many transactions out there, they could never all be recorded The solution that was proposed a few years ago and is now finally almost ready for rolling out to the consumers is this level two protocol called the lightning network What you do and the reason it's called level two is, [00:31:00] instead of recording a payment to the bitcoin network

You submit a transaction to the bitcoin network that opens a channel between you and somebody else, a payment channel, and you commit a certain amount of bitcoin to it Say a $1,000 As a metaphor that's almost like submitting, depositing $1,000 at a bank to open a checking account You [00:31:30] now have a checking account and it's got $1,000 in it Without the bank instead it's recorded to the blockchain and it's decentralized and no one can, as long as they don't steal your digital keys that secure the cryptography that you open the account with, no one can take that money or move it without your signature

Now you have this channel and it was submitted to the seven transactions per second, and [00:32:00] you paid your fee, whatever the fee is at the moment, maybe it's a dollar, maybe it's $5 to get a transaction submitted You did have to pay a fee to the bitcoin network, to the miners to get this transaction submitted Once it's open you now have this channel that's got $1,000 worth of bitcoin in it Now whenever you want to transfer money to that third party you don't have to submit the transaction to the bitcoin network You can just send them only along the channel you have opened, just between the two of you by exchanging signatures

[00:32:30] You can say, "All right, we are updating the debit and credit to say, "Instead of $1,000 to me and zero to you, it's now 990 to me and 10 to you" And you both sign that with your digital signature, and it's a good transaction Now they have $10 Any time they want to close the channel out after that they can submit a new transaction to the bitcoin network that says $10 to some account they control and 990 [00:33:00] to an account you control Or you can just leave the channel open

You can keep sending money back and forth like this, just between the two of you without ever getting the bitcoin network involved That's why it's called layer two You are existing at a layer above the bitcoin network It's a private channel, it's only between you and them It's more private now because these transactions individually are not public records

The only public records is that you open the channel of $1,000 in the first place Trevor Burrus: [00:33:30] Just as an analogy to this, if I'm understanding correctly, would it be like going to get a rental car and they swipe your credit card, and they authorize it for more than maybe the eventual charge you owe or is that a bad analogy? Brock Cusick: I think my first analogy about the checking account was better Another one could be say you open an account with, say you do a lot of shopping on eBay, and you also sell a lot of stuff on eBay You open a channel to eBay And [00:34:00] you put $1,000 into it

You now every time you buy something off eBay, instead of submitting a new bitcoin transaction, you submit a lightning network transaction just between you and eBay on your private channel Every time you sell something on eBay they send you money on the channel As long as you are still doing business with eBay, you just keep the channel open The useful thing here is eBay can now play [00:34:30] the role of middle man, because it have a lightning network channel to everyone else who buys themselves on eBay Say your dad also uses eBay, and you want to pay him $10 for lunch

Submitting that $10 transaction to bitcoin would cost you $2 in fees and it would take six hours or a day to confirm It's not convenient You could submit a transaction to eBay and say, "Hey, I want to pay my dad $10, we both have lightning channels with you I'm gonna send you 10 and [00:35:00] then you send him 10" eBay says, "Well, if I keep a penny I'll do it

If I get to keep a penny I'll do it" Now you can have instantaneous transfers between you and anyone else in the world as long as you can make a daisy chain of lightning network channels You might have an account with eBay, and maybe someone else has an account with Amazon, a lightning channel open to Amazon, because that's where they do their shopping eBay and Amazon [00:35:30] have a lightning channel between them because eBay pays Amazon for cloud services It's three parties but again, the cost of a lightning transaction since it's not submitted to the bitcoin network is only the cost of the computer and the electricity to confirm a simple, do a simple cryptographic calculation

It takes a fraction of a second The actual cost is probably not a penny but a thousandth of a penny or a millionth of a [00:36:00] penny You can do an infinite number of transactions between you and someone else as long as you pay those very, very small transaction costs, and it's solved instantly, not 10 minutes or an hour from now Aaron Powell: If that's a level two, that's example of a level two network, then that's a sidechain? Brock Cusick: A sidechain is completely different The level two networks like I said, they are good for payments

They allow bitcoin to be bitcoin but only faster and cheaper A sidechain adds [00:36:30] entirely new functionality As we've discussed, the bitcoin network has rules, and when you participate in the bitcoin network, you can only submit transactions that follow those rules If you submit a transaction that tries to do something else or has data in it, it doesn't make sense to the bitcoin network, the transaction is just gonna get rejected If you wanted to do something else entirely you can set up a new blockchain with different rules

People have done [00:37:00] that, like Ethereum Whenever you start a new blockchain like that, there is a bootstrapping problem We have to attract users because without users the cryptocurrency has no value If the cryptocurrency has no value, there is no incentive to people like miners to participate or to lend resources to the network It's a real hard bootstrapping problem, and it's also filled with a lot of scams unfortunately, because people will start a new blockchain [00:37:30] and they'll try to build up a value for it, but instead of rewarding all the coins to the miners they've kept 20% of the coins to themselves

It's sort of a get rich quick scheme A sidechain is like that, but instead of creating a whole new network, you just create a new set of rules and you agree to what's called Atomic Swap protocol, which allows you to exchange cons on your network for [00:38:00] bitcoin at a one for one ratio The benefit of this is that they will then [inaudible 00:38:07] of a one for one fixed exchange rate with bitcoin, the value of your coins are the value of bitcoins The bootstrapping problem of creating a valuable coin is totally sidestepped Your new blockchain can have completely different rules

It can do completely different things in bitcoin It might have blocks that are a gigabyte in size [00:38:30] or might perform arbitrarily total incomplete transactions like Ethereum does What a sidechain does is it adds new functionality to bitcoin by allowing people to move their bitcoin to the sidechain, doing whatever it is that that other chain does, and then moving those coins back to bitcoin when they are done and without [00:39:00] any market risk as long as you are willing to accept the market risk of your bitcoin changing in value Trevor Burrus: Aaron had mentioned previously that we have other things that we can do, or you had mentioned that if you have anything with a ledger where you need a third party like a phone book to verify a transaction then it has possibilities of blockchain application, and you had mentioned that maybe Ethereum is more [00:39:30] useful to these things We kind of got on that a little bit

If you start really thinking about sort of the world where the blockchain is running free, what sort of things that people may be surprised, could have an application to the blockchain, what sort of areas that are not explicitly money? Brock Cusick: There is first order effects and second order effects You might be familiar with the story where lots of people predicted cars, no one predicted Walmart Trevor Burrus: [00:40:00] Good point Brock Cusick: Walmart is the second order effect of consumers being able to drive to a store and the car has a large trunk Now they can do book shopping

Walmart and Costco are second order effect of the personal car The first order effect is all the companies out there are that are currently paid to maintain a ledger are under threat Because now ledgers can be [00:40:30] anything that is blockchain To tie it back to a sidechain Say I create a sidechain whose only purpose is to write and create a phone book

You create a phone book and you list names, phone numbers and email addresses, whatever you want to be public, since this is all purely voluntary You can transfer bitcoin to that sidechain, [00:41:00] you can pay the transaction fee to record your name and your phone number and your email to that ledger It collects a transaction fee paid in bitcoin because of the one for one exchange rate You sign it with your digital signature, so everyone knows it's actually you Then you transfer the change back to the bitcoin network

You now have a sidechain that's a phone book or maybe the domain name service that records all [00:41:30] of the website addresses in the world that's a bitcoin powered sidechain Any companies out there are under threat because of that That's the first order effect Second order effect I think is very interesting because those are harder to guess, but I have a couple that I like to think about One is how regulators are gonna be affected

[00:42:00] As Aaron mentioned when we started, I'm an attorney, so I think about laws and regulators a lot Right now there is a lot of regulations that affect us as consumers on a day to day basis without us really being aware of it, because we are not regulated directly We are regulated indirectly by having say our banks be regulated There are certain transactions you can't engage in because the bank won't let you Or the bank will, if you engage in certain [00:42:30] types of transactions or with certain types of counter parties or your transactions are a certain size like you withdraw over $10,000 in cash from your account, it all gets automatically reported to various regulators

That law is something that would be very hard to enforce against consumers directly But it's easy to enforce against the bank, because it's one bank, it's a big target, they've got a compliance department, who can check on these things [00:43:00] and could be held accountable You have all these laws The bitcoin network doesn't have a compliance department It doesn't report things automatically

If the United States tried to force it to change its rules the servers might just move to Peru, or China, or Singapore, or wherever It's very hard to nail down It's very hard to regulate Regulators are gonna have to approach things very differently [00:43:30] Any time we have

And that's true for not just banks, but if you think about currently the debate in privacy with The NSA has servers installed at AT&T's headquarters, so they can listen to all phone transactions That's only possible because AT&T cooperates with them If AT&T, if the phone book becomes decentralized and all the communications switch from [00:44:00] phone conversations to encrypted voice channels and everything about AT&T gets decentralized, now there is no office for the NSA to put its servers at It would have to take a different approach to achieving national security, which I think is good I think national security is a useful thing to have, but it's gonna force them to adapt, and that's gonna be a second order effect

There is probably gonna be a lot of gnashing of teeth and wailing, because no one likes [00:44:30] change Aaron Powell: I'm gonna ask about one potential use that I have no idea about but my boss John Samples who heads our First Amendment Project at the Cato Institute when I was telling him we are doing this episode asked me to ask this He was curious if blockchain or related tech could do anything about the current widely believed in problem of fake news You talked about distributed identity [00:45:00] systems and verified NNC systems, is there some way that we can kind of address these questions of what's authentic, what's not? Brock Cusick: Yeah, I think there is actually Let's take an example of the identity blockchain, the phone book blockchain

We'll build in a couple of more features You've got a phone book blockchain and you record your name and your couple of pieces of identity that [00:45:30] are yours Maybe an email address, maybe a Twitter handle That's your online social identity and is recorded to the blockchain Now we have already discussed the concept of the lightning network

The lightning network allows thousands of small cheap, instantaneous transfers of value What if the phone book blockchain, or sidechain had a lightning network but not for money? For trust, so that every time I interact with you [00:46:00] on Twitter, every time we exchange you reply, every time you reply to me or we send a DM, there could be an anonymous sort of little up-vote or tick to you or to me saying, "This person is a real person I've interacted with them for the last six years I've had conversations with them I think they are a real person I think they are trustworthy

" I could even write reviews [00:46:30] like Amazon You can write someone five stars Maybe you get a limited number of likes every week from the blockchain Instead of the blockchain giving out bitcoins it gives out likes that you are allowed to reward the people Over time, in a very organic way you can verify to the blockchain that this is my identity, and I have [00:47:00] 500 people who've all been interacting with me for the last five years, versus an account that maybe registers a comment on a news article or maybe they submit something to Reddit, but that account doesn't have that sort of history

It doesn't have that weight, the social weight, because it's fake It would be exceedingly hard for the, not impossible This is just like bitcoin, it's not impossible to fake a bitcoin transaction [00:47:30] It's just exceedingly expensive for the amount of value you get out of it Imagine if every time [inaudible 00:47:39] whoever wants to submit or a political operative wants to submit a fake news article

They can't just have fake a news article They have to fake six years or seven years or 10 years worth of social interaction It's now cost prohibitive Trevor Burrus: [00:48:00] That's a really good example of where people, where this can go A lot of people think that this is confined to bitcoin

We are still, to a bunch of people it's strange and so new It seems like this could get even bigger in terms of how disruptive so to speak or I wouldn't even call it disruptive, I would call it progressive that we can apply this to many different things How big can this general blockchain technology get? [00:48:30] The second question is this It seems at some point the governments of the world might start getting upset about it, because they might be- Aaron Powell: Especially considering that this all originates among, the early people behind this and the early conversations when bitcoin was still a very small thing was quite Gold Scourge and this is libertarians and anarchists, the cipher punks and so on That there's always been a strong anti- [00:49:00] authority, anti-government strain to all of this

Brock Cusick: Very strong anti-authority Not just anti-government, they are anti any form of authority They don't like Microsoft, they don't like Google, they don't like the banks They just want to be very independent That's true and the government is, we have I think as a preview, look at the fights we have constantly over encrypted communications

That is [00:49:30] an ongoing permanent fight with the government So far America is a fight that privacy people are winning, but it's not easy Now multiply that by 1,000 because bitcoin and all these other ledgers, they don't just encrypt communications, they potentially encrypt everything They encrypt finance They encrypt money

Now let's combine [00:50:00] a few potential blockchains that are all decentralized If you combine decentralized encrypted money and decentralized encrypted communications, and a decentralized phone book which could also record say a mailing address, a PO Box You probably won't want your home address on the public record, but a PO Box could be okay, or any sort of centralized receipt, [00:50:30] place for receipt of packages

You combine all that with self driving cars I can now communicate with you over an encrypted channel, we can agree to exchange goods and services for money on that encrypted channel We can send each other the money over the encrypted channel, either bitcoin channel Then I can call up a self driving car, give it a box and the box is [00:51:00] a form of encrypted, because the box itself is brown paper, it's opaque, and the self driving car will drive it to you There is now, you have basically the entire economy could become encrypted

Trevor Burrus: This is libertopia we founded Brock Cusick: Yeah, the physical economy, not just communications but the physical economy and the finance networks could al become encrypted at certain levels of sophistication if blockchains become [00:51:30] sufficiently developed and sufficiently mature and sufficiently widely accepted There is no guarantee we get there obviously, but that's a future that people are gonna think about and people are gonna worry about, especially on the regulatory side Trevor Burrus: Do you think governments can stop this? Brock Cusick: They can make it hard They could make it really hard

In fact, they can, here is an example, everyone involved in bitcoin has, everyone involved [00:52:00] in bitcoin has some level of exposure to the market price of bitcoin The miners are mostly in China, because China has very cheap electricity Their hydropower out in the Himalayas is almost free China has all the miners You might think the US regulators have very little leverage over the bitcoin network because the miners are all in China and the nodes are global

Bitcoin only has a market value because [00:52:30] rich people, and by rich I mean the developed world, wants to buy If bitcoin is banned in the US and Japan, and Western Europe, what do you think is gonna happen to the market price? Trevor Burrus: Plummet Brock Cusick: Go through the floor It's gonna go through the floor, if no one can buy it In that sense, the regulators do have some leverage over the miners, at least indirectly because they want to sell the bitcoin for the highest possible price [00:53:00] to the greatest number of buyers

They want the transaction fees volumes to be high There is some leverage there Trevor Burrus: Should people buy bitcoin with that in mind? Brock Cusick: Whether they could attack the networks directly really depends on how widely they are adopted Trevor Burrus: With that in mind and other concerns and also positives that you've raised, should people buy bitcoin? Do you think it's a good investment? Brock Cusick: [00:53:30] It's a gamble If it becomes the global reserved currency for all computing resources, it's worth a hell of a lot more than $6,000

If it gets banned by all the world's governments it's worth nothing Aaron Powell: With those potential threats in mind and with the interesting innovations that we've talked about, the sidechains and the level two and the way that this can then [00:54:00] interface with other things in our lives, what do you think the next say five to 10 years in this space look like? Brock Cusick: Next five to 10 years are still building out I think what's really fascinating, it's hard for me to guess I predicted that a recent upgrade to the bitcoin network called Segregated Witnesses, just got adopted this summer I thought it was gonna get adopted two years ago

I even made a bet with a friend of mine for [00:54:30] 50 bucks that the SegWit would be adopted and that micro-transactions would be a thing like a big thing by last October Obviously I was completely wrong I completely missed how big a faction within the bitcoin network was resistant to SegWit being adopted Without those protocol upgrades, the seven transaction per second limit [00:55:00] is gonna prevent bitcoin from ever being widespread adopted It could end up being a replacement for gold, but all of the wild eyed fantasies of libertopia will not come true because the process throughput is too limited

On the other hand, SegWit's been adopted now, the lightning network finally has everything it needs to go and I've seen indications that the technology needed to support [00:55:30] sidechains should be available within the next six months I haven't seen any organized resistance to it If those two things actually go through and we actually have lightning network in sidechains by say March, the next five to 10 years are gonna be prototyping out the technologies, the consumer facing technologies on the level two protocols and on the sidechains that really add functionality and throughput [00:56:00] to bitcoin and really allow it, give it the growth head groom it needs to actually become a global currency Aaron Powell: Thanks for listening This episode of Free Thoughts was produced by Tess Terrible and Evan Banks

To learn more visit us at wwwlibertarianismorg

Blockchain implementation, ICO from celebs & tomatoes! | CRYPTO NEWS #7

welcome to our weekly roundup of blockchain news I'm Ben throughout this video we'll be telling you about everything that's been happening in a blockchain universe this week please we ask questions and other videos so don't be shy to let us know what you think in the comments below the biggest story this week is of course the segue to X in the calm after the storm segue to X was found dead in the water the controversial update to increase the size of bitcoins blocks that could have been led to Bitcoin forking itself has been put to rest by the creator's themselves do you think that this was the right move all right now let's talk about tomatoes and in Italy people have come under fire after an investigation revealed the exploitation of immigrant workers in the country's south leaning two debates over whether to implement blockchain technology one side is arguing that blockchain technology will allow consumers to know the source and quality of their food products and the opposition is arguing that blockchain technology can be limited in such a field and sometimes you just don't want to know where it comes from okay so our question of the week comes out of China and it's this does China's government have as tight a hold on the crypto market as people thought well the short answer is no because people are people and people will always find a way to make money you know the more spiritual Chinese investors seem to be following the ancient Confucian proverb the man who moves a mountain begins by carrying the smallest stones away from China it seems that in spite of the government's hard stance against icos Bitcoin and the subsequent regulations imposed on the market Chinese investors are finding ways to wriggle their way out of the government's back pocket investors are doing things as small as dropping the government-controlled messenger at WeChat for a more secure Russian based telegram as well as bigger changes such as taking the crypto mining operations into less regulated areas what is the future of Bitcoin in China The United Parcel Service is one of the newest of what is sure to become one of the many companies in industries outside of the crypto verse to embrace blockchain technology announcing a partnership with PETA the consortium claimed that ups will be implementing blockchain in systems used to track or monitor packages and facilitate payments between shipping parties but this is only the beginning the possibilities for blockchain are seemingly endless for ups and they could lead to improvements in efficiency and transparency in every aspect of the business except the boxes themselves let's not make those transparent it seems that UPS is one of the many companies stepping up to bring us greater transparency even when it hurts and now with a story out of Russia Russia has announced plans to integrate blockchain technologies into its tourism sector within the next five to ten years Russia where it's warm beaches and big smiles have attracted tourists for decades want to use blockchain technology so that tourists will be able to connect straight to service providers without the need for third parties or intermediaries they believe this will lead to more responsible practices by tourism agencies such as paddle boat rental services beach umbrella vendors and tiki torch manufacturers now we have just another reason to move to Cyprus the sy CY SEC plans to integrate a DLT into its elg after signing a partnership agreement with the BARC what does this mean the Cyprus Securities and Exchange Commission has announced that it will be integrating blockchain into its electronic payment system it is their hope that this will lead to a more efficient secure and simplified financial industry this is just another reason to go to Cyprus especially if you I see Oh startup in line so should we be getting our financial advice from celebrities well the SEC says that's your business but they warn that celebrities like Paris Hilton and Jamie pops who haven't outing different icos could be illegal if they're part of an undisclosed paid promotion they stress that it's in your best interest to do your own research and make decisions based on hard facts over celebrity endorsements and also they'd like to remind folks that don't eat raw chicken and if you plan to go out in a snowstorm wear boots now we have visa who has decided to be the first major credit card to jump into the crypto pool starting with Singapore card holders will now be able to use their visa back cryptocurrency debit cards to make purchases at over 44 million locations worldwide parents of students at the Montessori schools and flatterin and Soho recently asked the Chairman marcozzi osa if they could put pay their children's tuition with Bitcoin to which she replied yes and then very quickly added please though the school does not hold on to the bitcoins themselves it has offered a more affordable reliable and efficient way for schools to process tuition payments especially when you factor in the processing fees of most major credit cards and out of the us

in a year rife with conflicts regarding transparency in US government especially with the past election blockchain technology might be on its way to save the day the blockchain firm consensus has partnered with the US Department of State to explore all the potential applications of blockchain technology do you think that this could be a new age of transparency in the US government and really do you want to know and that's all the news for this week upcoming next week we'll be bringing you daily news please don't forget to subscribe down below and leave us any comments with any suggestions or answers to any of the questions posed today this being our first crack and a weekly news update we want to know what kind of stories you want to hear about do you want to hear more about finance or do you want to hear more about the different advancements in blockchain in all different types of industries please let us know what was interesting to you and what you would like to see more of in the future thank you

Bitcoin Event & Blockchain Event in Nürnberg + [Gewinnspiel] ⭐⭐⭐⭐⭐

Bitcoin event, Block Chain event bitcoin, bitcoins, bitcoin offline event, Bitcoin presentation, bitcoin mining German what is bitcoin what bitcoins, bitcoin earn bitcoin buy bitcoin declaration, bitcoin pay bitcoin German Tutorial, digital currencies, crypto-currencies, BTC , bitcoin mining, virtual money, bitcoin euro, digital money, bitcoin for beginners, virtual currency bitcoin wallet, lbnewstv; Hey friends what's even never here us nice that you are there and in each of my videos I will give away immediate access to a My tube market behind price which help me every day to get to new business partners to my business on autopilot Build the only thing you need to do a theme relevant comment is below my videos to post With a facebook profile so that I can inform you, too, and now it starts with the video much fun left or

Accelerating the adoption of enterprise blockchain

So people ask me a lot about blockchain It is quite a regular feature, Certainly in these video presentations

The reason why it is the future is because of its decentralized approach Because of its security approach And also because of the very nature of how the transaction works in terms of being instantaneous So Block chain is a very complicated technology

Especially because there's public block chains like Bitcoin And you can potentially have a consortium of property investors That have their own application that works on a on a blockchain Or something of that description But I really do think this piece from Microsoft that came out this week, I think it takes the blockchain concept and makes it sound a lot simpler The world is coding to blockchain at the moment The world is writing blockchain applications But this story to me is a lovely little way of understanding blockchain, Understanding the use cases from an industry perspective, And I think this is very valuable

It's probably the best article that I've seen on blockchain I think people generally over dramatize these types of technology, Potentially they may want to make themselves sound smart, But this article is a lovely simple way of understanding blockchain

Rhian Lewis at UKSTAR 2018 | Blockchain Applications and How to Test Them

I'm Rhian Lewis I'm going to be talking at UKSTAR next year about how to test Blockchain applications

So why do testers need to know this? After all, Blockchain is the protocol that underlies bitcoin and other crypto currencies Well, blockchain is starting to be used for all kinds of different applications, from supply chain management to power grids and anything you care to mention Why are they different from normal applications? You'll have to come to my talk to find out Thank You!

How does a blockchain work – Simply Explained

Blockchains are incredibly popular nowadays But what is a blockchain? How do they work, what problems do they solve and how can they be used? Like the name indicates, a blockchain is a chain of blocks that contains information

This technique was originally described in 1991 by a group of researchers and was originally intended to timestamp digital documents so that it’s not possible to backdate them or to tamper with them Almost like a notary However it went by mostly unused until it was adapted by Satoshi Nakamoto in 2009 to create the digital cryptocurrency Bitcoin A blockchain is a distributed ledger that is completely open to anyone They have an interesting property: once some data has been recorded inside a blockchain, it becomes very difficult to change it

So how does that work? Well, let’s take a closer look at a block Each block contains some data, the hash of the block and the hash of the previous block The data that is stored inside a block depends on the type of blockchain The Bitcoin blockchain for example stores the details about a transaction in here, such as the sender, receiver and amount of coins A block also has a hash

You can compare a hash to a fingerprint It identifies a block and all of its contents and it's always unique, just as a fingerprint Once a block is created, it’s hash is being calculated Changing something inside the block will cause the hash to change So in other words: hashes are very useful when you want to detect changes to blocks

If the fingerprint of a block changes, it no longer is the same block The third element inside each block is the hash of the previous block This effectively creates a chain of blocks and it’s this technique that makes a blockchain so secure Let's take an example Here we have a chain of 3 blocks

As you can see, each block has a hash and the hash of the previous block So block number 3 points to block number 2 and number 2 points to number 1 Now the first block is a bit special, it cannot point to previous blocks because it's the first one We call this the genesis block Now let's say that you tamper with the second block

This causes the hash of the block to change as well In turn that will make block 3 and all following blocks invalid because they no longer store a valid hash of the previous block So changing a single block will make all following blocks invalid But using hashes is not enough to prevent tampering Computers these days are very fast and can calculate hundreds of thousands of hashes per second

You could effectively tamper with a block and recalculate all the hashes of other blocks to make your blockchain valid again So to mitigate this, blockchains have something called proof-of-work It's a mechanism that slows down the creation of new blocks In Bitcoins case: it takes about 10 minutes to calculate the required proof-of-work and add a new block to the chain This mechanism makes it very hard to tamper with the blocks, because if you tamper with 1 block, you'll need to recalculate the proof-of-work for all the following blocks

So the security of a blockchain comes from its creative use of hashing and the proof-of-work mechanism But there is one more way that blockchains secure themselves and that's by being distributed Instead of using a central entity to manage the chain, blockchains use a peer-to-peer network and anyone is allowed to join When someone joins this network, he gets the full copy of the blockchain The node can use this to verify that everything is still in order

Now let's see what happens when someone creates a new block That new block is send to everyone on the network Each node then verifies the block to make sure that it hasn't been tampered with If everything checks out, each node adds this block to their own blockchain All the nodes in this network create consensus

They agree about what blocks are valid and which aren't Blocks that are tampered with will be rejected by other nodes in the network So to successfully tamper with a blockchain you'll need to tamper with all blocks on the chain, redo the proof-of-work for each block and take control of more than 50% of the peer-to-peer network Only then will your tampered block become accepted by everyone else This is almost impossible to do! Blockchains are also constantly evolving

One of the more recent developments is the creation of smart contracts These contracts are simple programs that are stored on the blockchain and can be used to automatically exchange coins based on certain conditions More on smart contracts in a later video The creation of blockchain technology peaked a lot of people’s interest Soon, others realized that the technology could be used for other things like storing medical records, creating a digital notary or even collecting taxes

So now you know what a blockchain is, how it works on basic level and what problems it solves Want to learn how you can implement a simple blockchain with Javascript? Then checkout this video here And as always: thank you very much for watching



Blockchain verstehen – Vergleich mit Wikipedia (By PFG Debates)

So what is actually these so-called block chain? Difficult to explain, I read it from time: What we should remind ourselves first time, is that the block chain contains so-called lists, called the man "blocks" and in these blocks, the individual data are stored and transmitted for each transaction

This data may be possible everything For example: Transaction data such places and time Sounds pretty complicated – it's too! One can get a better idea in a different way: The analogy to understand that helps us block chain is Wikipedia If we look at Wikipedia, then data is stored there, in the sense of information and images that are transparent understandable for each person

I can go into the discussion Department of Wikipedia and can see WHO, WHAT, WHEN has changed This is obviously a great advantage for example to detect fraud It is similar in Block Chain: If I change things in the block chain, so the block new contains information, it is sent to all, that is: Following I know exactly WHAT WAS participants has changed Nevertheless, the data are anonymous, that is, I do not know which person what has changed exactly just as I do not know which user has transmitted the data Again, the parallel work

Similar to Wikipedia is also at block chain to an infrastructure which is made available So how can I have very different Wikipedias, you can also block chain applications create for very different scenarios We see this in Bitcoins but also in ride sharing services where block chain is used An interesting start-up can be found in Israel: Here is a ridesharing service block chain has used for themselves by allowing people certain "tokens" that is, their own currency, to advocate redeem them for a free ride

The ride is not quite free of course: The people deserve this token by itself offer rides So if I take a 10 km individual, I get 10 tokens and then this per kilometer, because I mitfahre for someone to use itself Quite convenient and quite safe! Similar to Wikipedia, entirely different data In wikis they are just

images and text At block chain may be all that: for example, sensor data of products in the logistics to be transported back and forth Or may be amounts of money crypto currencies

This can be a certificate that can be a certificate I can actually save anything in the block chain, which of course is quite practical That's why it but is so difficult to imagine what will be the future of the block Chain because we do not know which application examples will prevail The analogy with Wikipedia ends when we look at ourselves the issue of security

If you change something in a wiki, you can indeed see who has changed something The Administrators are the ultimate gatekeepers, they can undo changes and there are in doubt quarrels and disputes on the network Unlike in the block chain: This works locally If data is changed, this changed block is transmitted to all the network and it can not be changed later

new transactions Although it can be made, but these can not be changed later Plus: The cryptographic encryption makes the whole thing very secure against attacks That's why the technology has some advantages over Wikipedia you're interested in other topics, then you are welcome to look at our channel We have produced other videos

For example, if block chain is changed, the financial sector or not Just check out! We would be happy if you join us Many Thanks

Blockchain in der Logistik – Kommt die Revolution? (Pro und Contra)

If you believe the speakers at this year's Logistics Congress of the BVL then the logistics industry is already in the digital paradise

That is not the case, you see when you look in practice 60 percent of invoices are sent in paper form through the world This is not only expensive and time-consuming but also prone to counterfeiting The business models of many carriers still rely on analog lack of transparency to focus on digital progress instead We at PFG many customers have currently dealing with the issue of block chain Which themselves use and experiment That's why we thought we'd ask the question: "Can block Chain guide the logistics industry in the digital stone age? Or not?" The revolt of the consumer in the long term transport the block chain in the logistics industry

We see more and more that people attach importance to emphasize that within the supply chain is sustainable mismanaged, but also people are not exploited Secondly, the issue of health and food safety is an important factor The fipronil scandal was problematic for many consumers, and the pressure on companies increases The problem with the status quo: companies often do not know which sources have their suppliers and where they source their products The suppliers put often worth it, that it is not transparent so that prices can be kept as high as possible A solution might be smart Contracts based on block chains As I detail in "blocks" documenting WHERE, WHEN WHAT comes from

That means I can always prove my end customers that everything is set up on a clean supply chain In contrast, of course, is speaking the current working practices in the logistics sector Many suppliers have business models that are based on that they are transparent We do not know exactly where they relate the goods Good for suppliers: These can then turn up the price because they can always say: "It cost a bit more, took a bit longer" Block chain would make the radically transparent The greatest problem with the status quo that many processes occur still analog in the logistics industry Block Chain is a technology based on digitization to setup can only block Chains apply

if the processes are displayed digitally This is a problem that has to be made up On the other hand, it is of course a major cost item for companies

You can save lots of money by employing block chain Firstly intermediaries can be easily edited, which of course looking for intermediaries not good, but for everyone else, as the price then falls On the other hand costs can be saved by the data center will not be centralized are managed, which of course saves a lot of money in staff and equipment

Data will be stored locally in the future of the block chain I think we should not forget: One can by connecting block chain with IOT, reduce delays, by analyzing where the goods are just who they just

All this is also about smart Contracts and the block chain technology What we must not forget, and that's final contra-argument: Especially for many producers there are entry barriers If we look at ourselves, the logistics industry, we see that many products are sourced from Third World countries and emerging markets While it is easy when you upload photos of products and production facilities in the block chain, So in a block which is then transmitted further Nevertheless missing in these countries are often the basic understanding of how digital processes work And often lack infrastructure such as Internet connection or simply the knowledge

how to use the technology properly Knowledge is unfortunately often absent In my estimation block chain is therefore particularly the industrialized nations employ in the coming years, are where digitized, they can also use the technology If you want to join in the discussion and you still interested, then comes Just to our Webinar on 11/20/17 once at 1100 and 1400 We listen to the experts Mr Soysal on block chain

He knows a good and you can ask him your questions Thank you very much for your attention Until next time!