From the Web ages, to Blockchain

helamia (51)in #blockchain • 6 years ago

In 1972, Vinton Cerf (Vice President of Google) and Robert Kahn invented a new technology that enabled - and enables - data transmission with a minimal reduction of errors. TCP / IP protocol. This technology was used for the first time among ARPAnet (US Department of Defense) e-mail seekers. Previous technology was based on "circuit switching" and the connections between the two parties or cars had to be predetermined and supported during an exchange of information. To ensure such functionality, telecommunications companies had invested several billion dollars in the construction of dedicated lines. Cerf and Kahn have fundamentally altered this paradigm with the new TCP / IP protocol, which enabled the information to be transferred by digitizing and dividing into very small packages, each containing information about the address.

These packages, just released on the network, could take any route to the destination. There was no need to manage dedicated private lines or large infrastructure. The TCP / IP protocol has created the Internet, an open public network, divided without any central authority and which has no need for maintenance by anyone. Telecommunication multinationals banalized the protocol and saw it with skepticism. But architecture was growing and over this network passed and passed everything, written messages and voice, video and any kind of image, before and now cryptovaluta.

From TCP / IP to Blockchain

Bitcoin is a cryptosecret and a world payment system. It is the first decentralized currency, as the system operates without a central bank or single administrator. On January 7, 2018, the market capitalization of crypto valves reached $ 800 billion. Nobody from the traditional financial industry in 2009 would expect that Bitcoin would reach $ 20,000 and that it would build a parallel financial system. But the purists believed that they did not have that much currency, rather than a piece of technology to constantly improve.

Blockchain, the living heart of Bitcoin technology, is a public registry, decentralized, unchangeable and unmodified. Unlike other blockchains, it is estimated that neither a government like the one of the United States has the capacity and the resources to attack. In short, it seems that no one can have 51% of power over such technology. Each one can undermine bitcoin, benefit from technology, study it and become a controller and controllable. It's part of the Bitcoin network. So it is moved from a vertical system - that of central banks - to a horizontal system.

Some Bitcoin purists claim that there is no electronic money, but there is a single registry in which it is written that who belongs and who keeps it in storage. "Managing this registry is a key point. Through the transcription of ownership over the registry, titles are placed on entities and all this enables complex markets to function. These primitive needs, currency and transcription, have described our entire economic history by joining through banks. "

Now they are the same banks that initially underestimated the phenomenon they want to benefit. Indeed, all industries of any kind are seeking solutions to the blockchain, not necessarily bitcoin - even though at present it remains safer and more decentralized - to reduce costs and speed up any kind of transaction. For example, some pharmaceutical companies write in the blockchain cryptically the molecular composition of medical devices, drug descriptions, ending counterfeiting in the market, and studies related to new pharmaceutical products, in such a way as to guarantee a backup theoretically indestructible.

And the saving industry can become completely transparent - and credible - by delegating the blockchain to recording all operations. The client would have no chance of doubting the management of their financial activities, as it was impossible to modify them. With the blockchain, not only the manager can not get unannounced commissions, but such commissions would be revealed every time they were tried.

Let's imagine an agri-food producer chain managed with an instrument like blockchain. Financially, through a smart contract, the kids would have the opportunity to track all cash and cargo transfers. Small businesses, seeing the first payment to the biggest one, would have the entire chain under control and would have no problem getting the money. Such a system would be possible using, for example, smart contracts with Ethereum. It is a kind of "electronic contract" (we could call it "algorithmic contracts"), written in computer language and recorded in the Ethereum blockchain, where each party's records are recorded. Thus, there is no longer a need for an external authority or notary, but in this case a contract that exists at the time of the fulfillment of one or more of the ex ante conditions and that are implemented in a manner independent. Thus, the computer code becomes law. Respectively the Bitcoin blockchain, initially designed to transfer monetary values, that of Ethereum has been conceived since the first day as a platform capable of supporting decentralized applications - such as digital contracts, independently and without the need for a guarantor.

Blockchain not only makes the operating efficiency of most industries a simpler objective to achieve, but adds an indispensable element to any business environment. Put confidence.

Blockchain is all pure gold?

It is referred to "Gold 2.0" when referring to bitcoin, since, like gold, there are miners. However, Bitcoin miners are not human beings, but computers able to solve very complex algorithmic puzzles. If combinations are selected then the devices are rewarded with bitcoin. Similarly to gold, bitcoins are limited and theoretically they must preserve a value in a crisis period. But has not that always been the case? Until 6 months ago, the bitcoin market was almost always unrelated to the traditional stock market, now it is no longer.

The psychology of traders, from the moment in which the futures bitcoin is issued, has easily changed and does not show - at least at the moment - that wave of deep euphoria. The bitcoin market is extremely volatile and you see it on the same day to win 20 percentage points to lose later on traditional currencies. Like any innovation, there are shrills and opportunities. In the bitcoin and crypto worlds in general, it is required to benefit from very fast trading operations. But the bulk of traders, estimated at 96%, is losing, and not always because of bad forecasts. Often, some Bitcoin Exchange runs out of trouble, as it does not happen that these platforms cease to function, while the price drops or climbs rapidly. Since not bitcoins are still regulated, different positions appear to be in contrast to those of clients, in such a way that they start selling pre imposed (stop loss) to revise the price. When a client buys or sells near a exchange, he must provide his details and cease to be anonymous. Although frequent ripping operations of bitcoin are often performed after the purchase, using various services on the deep web.

Recently, there has been published an analysis of a possible correlation between Tether's currency issuance and Bitcoin's price and cryptovalues in general. It seems that Tether has been able to manipulate the price of bitcoin and other cryptovalues on the Bitfinex platform. Tether would seize theoretically behind the dollar, but without any external auditor that might have found the counterpart. Bitfinex has recently been sued by the SEC for this motive. Until a few months ago, there were various services that allowed holders of a debit card to convert and receive bitcoin profits in the form of traditional currency. However, especially with the prompting of authorities and Visa and Mastercard, these services have been blocked. Interestingly, what happened to Xapo, which has its legal headquarters in Switzerland, had a solution of this type (Visa debit card with bitcoin back). In the winter of 2017 it seemed to have an estimate of approximately $ 1 billion. Currently can not operate since Visa has blocked the card and no customer can benefit from the service. How much is it worth at this moment?

Bitcoin Blockchain, perhaps even Ethereum are "strong", but the ecosystem reflects the fragility of every human being: greed and desire for control. While the market of crypto valves is experiencing short periods of complete euphoria and fear and depression. Bitcoin volumes have shown an exponential performance and the use of financial leverage, coupled with extreme volatility, make the forecast extremely difficult. Exchange and some trading companies run by Artificial Intelligence are the only actors that systematically win that way. For exchange companies, there is no systemic risk, except that caused by an adjustment that is necessary and necessary today in a period as soon as possible.

Challenges for the future

On February 19, 2018, $ 850m was collected by the Telegram through an Initial Coin Offering (ICO). Through online publicity, users are made aware of a project. They read the Whitepaper, buy Ethereum against the Euros of dollars and pass it on whose behalf they have promoted the project in exchange for tokens (which can be exchanged in different markets). These tokens sometimes reflect capital and not always established societies, while others give the right to certain features. There is no guarantee for the investor in question. The idea may not start and the investment misses. Society can be created but may never release any product or service. There are no guarantee funds and, in most countries, there is no adjustment. In the United States, the SEC has created a team of analysts able to undermine the ICO market. Only in 2017, the ICO market has accumulated over $ 5 billion, almost always from very small investors, through direct or indirect marketing, fraudulent or clear. Nowadays, over 50% of ICOs have failed, losing the total investment they invested.

As the United States has started regulating ICOs, China has banned and can not be promoted on Facebook. Unlike ICOs, blockchain is embraced by the traditional financial system. Cross-currency exchanges are still a little transparent, but they must always have a referral bank for transferring and receiving funds in traditional currency. Only in the cases where all payments would be made in the cryptovalua would create a new financial system. But in our day is the utopia. So it will not be the blockchain that will make bankrupt banks, as purists say, and blockchain does not replace and can not replace the current payment system. But this technology serves as a bridge between the old and the new. What inevitably will be most likely "disruptive" in finance - and not just - lies in Artificial Intelligence. Blockchain does not understand and does not learn from its own mistakes. There is no analytical ability. Artificial intelligence and blockchain are respectively roots and wings. From many future businesses and from many of the present. And they are so complex that they are impossible or almost limited.

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