Wednesday, October 25, 2017

How many blocks could a blockchain block if a blockchain could chain blocks?

Hello all- If you have not heard of blockchain yet it is only a matter of time until you do. In my opinion I think that artificial intelligence and blockchain technology are going to cause disruption in almost every industry within the next 5 years. Today I want to talk about blockchain specifically.  Blockchain is the underlying technology behind cryptocurrencies like Bitcoin and Ethereum. There are some words that describe this technology that I think help boil everything down. 
  1. Distributed- On the blockchain, information is shared by all parties that participate through a distributed network of computers or devices (aka peer-to-peer). 
  2. Secure- The blockchain is a secure transaction ledger due to the consensus achieved by all the parties that participate. 
  3. Trust-less- The blockchain records and stores all transactions/exchanges of information, therefore removing the need for a trusted(centralized) intermediary.
Here is a video that is very good introduction to Blockchain by Don Tapscott (18:49).  Some of you may have heard about this at the IT Summit talk.  It offers many examples.



There is some speculation over the cryptocurrencies and their legitimacy. JP Morgan Chase's CEO, Jamie Dimon, called Bitcoin a fraud, but you also have people like Oliver Bussmann (former CIO of UBS) who left UBS to pursue blockchain related endeavors. Whether you think the coins are a scam or not, the technology behind the tokens are truly groundbreaking.

To continue the discussion here is a PDF from PWC on how blockchain & smart contracts will change the mortgage industry: http://www.pwc.com/us/en/financial-services/publications/assets/pwc-financial-services-qa-blockchain-in-mortgage.pdf   

Do you have any questions about blockchain?
  

5 comments:

  1. What are your thoughts about cryptocurrencies? Do you think that there is currently a bubble in the market? Every day a new article comes out from an individual that is invested in traditional banks, claiming that Bitcoin and crypto currencies are a fraud. These individuals obviously have reason to want cryptocurrency to fail, however, many neutral individuals also agree with them. While I agree that there may be a bubble in the specific bitcoin market, I do think that cryptocurrencies as a whole are going to be extremely prevalent in the near future. Currencies like ethereum are able to also process smart contracts like you stated. These currencies are extermely flexible and will allow individuals to do things that no one thought would be possible. For example, there are already application being developed that are using ethereum to revolutionize the cyber security world. A company called KYC-Chain is utilizing Ethereum to "help businesses safely onboard new customers, blending simple identification processes and know-your-customer regulations." Their platform allows customers to manage their own identities by sharing only necessary information. With blockchain, the possibilities could be endless.

    source: https://techcrunch.com/2017/06/04/business-in-the-age-of-ethereum/

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  2. My thoughts are that cryptocurrencies are here to stay. Especially Bitcoin (BTC). In my opinion, bitcoin is the most solid investment.Bitcoin's market cap (over 123 billion) is larger than Goldman Sachs and PayPal, and the entire cryptocurrencies' market cap surpassed 200 billion a few days ago. As I write this 1 BTC = $7,438, and I have a feeling it is going to hit 10k before the summer of 2018. People are unaware what is going to happen to the market with the Bitcoin fork coming up in a few weeks. The fact is no one knows the future of the market.

    You are seeing bitcoin accepted at more and more places these days. Newport Beach Lamborghini now accepts bitcoin as a form of payment. To be honest you don't see a ton of place in the US accepting it, but lets talk about Asia, especially Japan. Japan announced that they would make bitcoin an official form of payment. It was estimated that by the summer of 2017 over 260,000 retailers in Japan will accept BTC as a form of payment.

    I plan to use bitcoin as my savings account... No bullshit. Here is why:I plan to have a child one day. One day I will die, and all the money I have made will transfer over to him/her in my will. All of my assets (money, land, ect.) will have been taxed over the years, and I refuse to let the US government tax it again through the various forms of inheritance taxes. In my last days I will liquidate all my assets invest it all in BTC, and give my private key to my kid(s) (if they are not a drug addict or alcoholic).

    When I die mine my remains :)

    https://themerkle.com/buy-a-lamborghini-with-bitcoin-in-newport-beach/

    https://news.bitcoin.com/bitcoin-accepted-260000-stores-summer/

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    1. Of course, you never know what the price of bitcoin will be when you die, but at least your kids don't have to be subjected to taxes and interference by a third party (e.g., IRS). If that is your point, then by all means save your money in bitcoin. Of course, a will might be helpful, too, so your kids don't fight over who gets what. :)

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  3. one of the most helpful things I have read in order to understand the debate over cryptocurrency: https://blog.chain.com/a-letter-to-jamie-dimon-de89d417cb8

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    1. You may have found this "letter to Jamie Dimon" helpful, but it rehashes a lot of the same about blockchain (in my opinion). I posted what I think is a helpful understanding of the "basics of digital currency" from Coinage on my Tech Briefing blog.

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