Tag: Blockchain

Cryptocurrencies Without Blockchain? Learn More About Directed Acyclic Graphs (DAG)

Scaling a blockchain has proved to be a daunting, complicated task. Bitcoin, a trailblazer for all digital currencies, has been a stagnant, low-throughput network for years for this very reason. Currently, there are many initiatives circling around the crypto space that are aimed to enhance Bitcoin’s (and other platform’s) TPS. Some experts motion to have the block size increased, others want the processing time on the network to be reduced. There’s a great deal of debate as to which variable should be changed and, given how resentful the Bitcoin community is to any modifications, there’s no telling when the issue ... Read more

Bidirectional Payment Channels: The Future of Blockchain Transactions

If you’ve been keeping up with the Blockchain news cycle, you know that the scalability issue is still very much pressing for the Bitcoin network. Currently, the blocks on Bitcoin are being mined every 10 minutes and the block size is limited to 1 megabyte. The network is capable of processing nearly 2000 transactions every 10 minutes which means it can only handle about 3 transactions per second. Compare this capacity to the throughput of Visa (~1700TPS) or Paypal (193TPS) and you’ll see that, at this point, Bitcoin is a pathetically slow payment system. [Tweet “Bitcoin is a pathetically slow ... Read more

How Companies Can Leverage Private Blockchains to Improve Efficiency and Streamline Business Processes

Blockchain – the technology underpinning Bitcoin and Ethereum – is widely associated with decentralization. It is seen by many as means to eliminate banks (and other intermediaries) from transactions. And it’s believed to, one day, reshape completely the way our financial system works. However, there’s much more to blockchains than one might think. The technology, famous for providing anonymity and protection for the common folk, can be of value for corporations as well. Although, in a slightly different fashion. JPMorgan and Microsoft, have already thrown their multi-million dollar hats into the private blockchain ring. [Tweet “JPMorgan and Microsoft, have already ... Read more

Privacy and Security on Blockchains: What Protection Measures The Networks are Adopting to Secure their Users

Decentralization of everything, the great new idea of which the web can’t stop babbling, might still seem a bit utopian if you inspect it closely. Yes, blockchains are likely to reshape our economy, or a huge part of it, and benefit considerably those who are currently unbanked. They might also facilitate the creation of rating/reputation systems that are not controlled by any single entity and thus allow people (say Uber drivers who’d like to work for Lyft) to switch employers without having to establish their credibility anew. They might give users complete control over their assets; protect them, to a ... Read more

Internet of Blockchains: How Networks of Distributed Ledgers Will Enable Scalability and Cross-Chain Value Exchange

A few years ago – in the early days of Blockchain – a lot of people were taken with the idea of a multifunctional chain on which all transactions could be handled. After Ethereum was launched in 2014, its advocates were talking themselves hoarse about the transformative opportunities the platform introduced. Decentralized applications, they predicted, along with all sorts of value transfers would be executed exclusively on Ethereum from that point on, and no other networks would ever be needed. However, that belief didn’t last long: experts saw major networks facing scalability issues when trying to increase their user bases ... Read more

How Smart Contracts Work and What Industries They are Most Likely to Affect

Amazon disrupted the retail industry. Uber rendered taxies obsolete and Airbnb, the world’s leading online property marketplace, replaced hotels. Now, the original disruptors might find themselves in danger too. There’s a new technology emerging – the blockchain-powered smart contracts – that has a potential to take over what is now their place. What are Smart Contracts? Smart contracts are something many in the tech world have been dreaming of since the nineties. Nick Szabo, the computer scientist who first described the concept in 1996 (and also coined the phrase), defined them as: “Computerised transaction protocols that execute the terms of ... Read more

How Decentralized Exchanges Enable Trustless Trade on Blockchain Networks

For the longest time, people used to trade tokens and cryptocurrencies in centralized exchanges. It was convenient: the exchanges matched and executed orders automatically and provided a processing speed which most blockchains could never pull of – not with their complex block validation. But, at the same time, they were vulnerable as, in fact, all centralized databases are. ShapeShift, Cryptsy, Colbitex, Coinflip… it’s hard to even to count all the traditional exchanges that either fell victim to hacking or were shut down by regulators over the last few years. And this caused utter panic; people lost millions of dollars worth ... Read more

Ethereum’s Big Switch Explained: Why the Blockchain is Ditching Proof of Work and Adopting Proof of Stake Instead

Recently, we posted a brief overview of the Ethereum ICO craze. Before that, we had reviewed how blockchains work in general. Today, we’ll delve deeper into the process of mining. In this article, we’ll introduce briefly the concepts of Proof of Work (PoW) and Proof of Stake (PoS). We’ll talk about why Ethereum, the second largest blockchain, is planning to switch from the former to the latter and share some forecasts as to the outcomes this decision might lead to. Let’s get to it. Byzantine Generals’ Problem Among his many breakthrough accomplishments, Satoshi, the mysterious founder of Bitcoin, is praised ... Read more

The Dark Side of The Blockchain: What You Should Know About ICOs and the Ethereum Bubble

Not too long ago people were mocked for being enthusiastic about cryptocurrencies. There were popular comedy sketches, such as this one, showing looney guys being obsessed with Bitcoin. There were numerous articles titled “Why cryptocurrencies are a scam” or something along those lines. And there was general reluctance to take the Blockchain and everything that comes out of it seriously. Now, things have changed. The market capitalization of the cryptocurrency sector has exceeded $100b and Etherium, Bitcoin’s more flexible relative and the hottest thing in the world of blockchains, is rising in price at a frenetic, $100/week pace. The Ethereum ... Read more

How Blockchain Transforms Finance, Healthcare and the Music Industry

You’ve heard about Bitcoin. Actually, I think you’re sick of hearing about Bitcoin. You probably know a bit about Blockchain as well: the two are rarely brought up separately. But, being a businessman rather than a technician, you haven’t got time to delve deeply into the nifty mathematics that power the technology. You’ve got a company to run. And the truth is, figuring out all the intricacies and the inner workings of Blockchain is unnecessary to most entrepreneurs. It’s the benefits it brings – that’s what they should care about. Understanding Blockchain perks, however, is what many have problems with. ... Read more