It seems that Reserve bank of India and State Bank of Pakistan have taken extreme measures and have decided to instruct people to close all such dealings. In view of that we would like to inform here is that, this is not a buying or selling website for bitcoin or pkr or inr or usd or any such matter. Bitinfo only provides information on whats happening in the industry. Since the closer lots of exchanges have stopped the trading looking to abide by laws which is a good sign. We do not provide any sort of advises here either. We will report all information that is being provided as received or reported.
The topic of blockchain has been covered many times in details. There are pros an cons to all technology. Covering another blog of what it is just doesnt make sense. What I would like to write about is why blockchain use case have not been implemented if it is indeed such a disruptive technology. Before I dive deeper into the topic I would just like to say what many others already believe “bitcoin is THE killer app for blockchain” there might be many others but currently it is the only successful implementation.
Trusting the trust-less network:
Before we get into details of how powerful a distributed, decentralised network aka blockchain is, we must understand and start trusting a network that runs without trust. This is easier set than done. Pitching the concept is not very easy to an institution. Blockchain is not really a trust-less network per say as you must trust miners (however these miners really cant overwrite or edit your transactions), the origins of who these miners doesnt really matter, in addition to this we must also trust the blockchain node operators which can be thought of as record keepers. Then there are concepts of a private blockchains which I wont touch here as I think its pretty much useless. However we must also talk about private, and permission-ed blockchains over public chains. This is a concept which is a bit harder to understand, and most likely the one that institutions want to implement. And for this we must understand how coins such as ethereum, omni, waves, nem and hyper-ledgers (supported by IBM and Linux One Foundation) really work. In essence we must understand the true power of blockchain lies in the number of nodes if we are talking hyper ledger, nem(Proof of Importance or POI) or POS (Proof of Stake), or miners in Proof of Work (POW). I think we should understand these concepts in details as most of the problem arises when we dont see how a distributed network truly operates. The problem here is that institutions agree that its a great technology but they still dont truly trust it. At the same time they want to centrally control it to make a profit off it.
Blockchain is designed to change the backend design/structure of current systems, and enable them for future AI controlled setups. In an environment where there maybe no need for such a setup. But when you need trusted machine readable contracts and transactions there is no other way other then blockchain.
…. To Be Continued
Since the unleashing of the bitcoin code onto the world as an open source digital asset, many have tried to fork the code and do much more with the with the underlining technology known as blockchain. While many have simply forked and the SHA256 algorithm with competing products based on other algorithms such as scrypt nscrypt and now dagger.
Ethereum creator Vitalik Buterin envisioned a sort of a programmable blockchain. Based on smart contracts its a very powerful tool. In this Article I will try to cover the basics of ethereum so that you get clear picture of what it is and why its important. I think the best words of what ethereum is are on its website “Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.” Similar to bitcoin blockchain the ethereum blockchain requires ether to make or setup contracts and build decentralized apps based on those contracts. It is important to note that ether or ehterium being used directly will be very costly, but using it as contract based setup makes it cheap, fast, secure and unstoppable.
Mining ether is one topic being googled alot recently since it has risen in price while bitcoin price has fallen of a bit. This is even more visible when the rates of bitcoins start to rise we see the fall of price in eth or ether the fuel of ethereum blockchain. Mining is done through a program called geth which is a communicator between ether network and your system. Block generation time is very small so mining is not that difficult since there are no ASICs available for this algorithm you can look into mining it with cpu or gpu. A full tutorial on how to mine eth the fuel of ethereum can be found here.
Is ethereum the new bitcoin, most certainly not. Its a reprogrammable blockchain which can be used with contracts based programming to improve and build decentralized apps with incentives.