Blockchain technology creates untold opportunities everywhere

Blockchain technology creates untold opportunities everywhere

Previous blockchain blogpost

A war is over the future of Bitcoin, the first digital currency, and is already showing strain. Among the competitors of Bitcoin, two of them are Darkcoin and Ethereum. People use these younger cryptocurrencies for much more versatile purposes. Hence Bitcoin faces a threat from more nimble competitors. Digital currencies will drive new company model innovation at unprecedented levels. This revolution could be either a bubble or the onset of a financial realignment.

Blockchain technology represents a seismic shift like that of email and web in the 90s and Facebook and Twitter a decade later. Also, the novel technology is changing the world for the better rapidly in a radical manner. Furthermore, even mainstream players like Goldman Sachs, Visa, Capital One, New York Stock Exchange, and Nasdaq have invested in this groundbreaking technology.

No central authority

Blockchain

Blockchain

Blockchain processes transactions without recourse to a central body like a payments company, bank or government. Finally, services and businesses can be decentralised, cutting out intermediaries and removing points of failure. The blockchain is an incorruptible digital ledger that tracks transactions of any kind that is of value. This innovative technology also makes Bitcoin and other cryptocurrencies possible without centralized authority.

Key success factors

Many factors are driving the cryptocurrency boom today whose price is double the price of gold

Many factors are driving the cryptocurrency boom today whose price is double the price of gold

Many factors are driving the cryptocurrency boom today whose price is double the price of gold. First of all, miners get motivated because of the incentivized system where they can earn digital money. Second, it allows for privacy that separates people’s identity from their transactions. Third, it is a public ledger validated by peer network and mathematical calculation. Another advantage of cryptocurrencies is that they are run on this blockchain technology that uses a public record created using a crowd-sourced system. And last but not the least, the approach of blockchain is decentralised that eliminates dependency on financial institutions. Alternative currencies are in direct contrast to the image of traditional finance. In contrast to fiat currencies, the early leaders of digital currencies would never pass muster at legacy institutions.

Various industry applications

Cryptocurrencies are just the tip of the iceberg, much bigger and more essential things lie below the surface

Cryptocurrencies are just the tip of the iceberg, much bigger and more essential things lie below the surface

Cryptocurrencies are just the tip of the iceberg, much bigger and more essential things lie below the surface. Much like no one predicted Uber, Spotify or Seamless, it is difficult to tell how blockchain will evolve or impact us. Decentralisation and cryptocurrencies are not getting here next week or even next year per se. However, the data and preliminary research are amassing that this technology is for real. Homeland Security is considering blockchain to track people and goods across borders. Similarly, Food and Drug Administration is looking at it, among scores of others, to help with population health management. And Financial Services Industry are making numerous efforts in this arena too. So, Blockchain technology has the potential to create countless opportunities everywhere. Certainly, 21.co, a blockchain startup founded by Dr. Balaji Srinivasan, is a compelling case in point.

Foray into blockchain

Dr. Balaji Srinivasan is an entrepreneur, an academic, investor, and a thought-leader in the blockchain. Also, he is the founder of a blockchain-based genome startup called Counsyl that started in the Stanford dorm and examines 5% of all births in America. But most noteworthy, it won the Innovation Award, raised $65M in funding, was one of the Top 10 Ideas and is arguably the world’s largest genome centers. Dr. Srinivasan teaches at Stanford University, manages the Stanford Bitcoin Group as well as advises and invests in startups. He was a Partner at Andreessen Horowitz before being the Co-founder and Chief Executive Officer of 21.co. Through this innovative website, one can earn digital currency and have exposure to an already vetted Silicon Valley group.

Earn digital currency

According to the webpage of 21.co, a user sets up an account for paid messages. Account holders can answer the messages on web or mobile and make money anywhere anytime – while lining up, when at work, or during the morning commute – and it works in all the countries in the world. Users get paid for their services in Bitcoin and have the option to either donate the money to charities such as Black Girls Code or keep it. One has to be techno-savvy to earn digital money or take a risk and purchase digital currency.

Silicon Valley exposure

Apart from allowing access to earn or mine Bitcoin, another beneficial service of 21.co is exposure to the critical people in technology to pitch a startup. It has lists of 200 blockchain experts, 400 founders, 100 Chief Executive Officers, 50 investors, 50 capitalists, and 37 Horowitz partners.

Already vetted group

The business practice of yesteryears was to invest in database lists that companies use for cold calling. This process is inefficient – no consent or introductions or incentives, resulting in a huge number of deleted and unread messages. Research-driven companies and marketing utilize this blockchain-based website to get input from a vetted group who are eager to participate in the joint benefits. Using the platform of 21.co users can conduct research, assign tasks, and respond to email. The business outcomes and performance results at 21.co have stunned everyone concerned. The success of 21.co has made it clear that data-driven sales and marketing companies can receive feedback and completed tasks with a highly robust and efficient framework built on consent, trusts and mutual benefit.

Social interaction network

Digital currencies derive value the same way offline traditional currencies get theirs. According to Srinivasan, if there is a region of people or nation-state, it becomes reasonable and legitimate for that group to have local money. In the new phenomenon of Bitcoin, that currency is called a social network, and it is a crucial prerequisite. They are agglomerations of people that are online and not necessarily in a physical location. This logic and process do not have dependencies in the physical world, and users can widely distribute them.

Branching of blockchain

Srinivasan described that blockchain has branched into private and public blockchains. Cryptocurrencies such as Bitcoin, Etherium, Dash, Ripple, etc. work within the public blockchain space and private blockchains include Interledger, Hyperledger, and Cords. It is the popularity of Bitcoin that led to the expansion of blockchain into these models. A good analogy regarding public vs. private blockchains is Internet vs. Intranet.

Advise to entrepreneurs

According to Dr. Balaji Srinivasan, the founder of 21.co, two kinds of startup entrepreneurs exist in this world. There are the ones who are already running a company, and there are those who want to build a business. Srinivasan says that the key to success is a higher-level motivation that will get people up and about in the early morning hours and through the initial startup chore. He advises startup founders to build it entirely on blockchain as opposed to starting a business. Technology that can create value in other people’s lives can bring impact, influence, and monetization. More decentralized companies of commercial value will arrive in the future, powered by blockchain.

Coming up next:

Some businesses and companies prefer to stick to their past, but this is not a good marketing strategy. Instead, it is essential to take a progressive approach and look out for the next big thing. That is what happens when companies begin to accept Bitcoin payment that put them in a position for greater success. Embracing the power of this new blockchain technology shows the customers and prospects of a business that it is well ahead of the curve.

The scope of Bitcoin and cryptocurrencies

The scope of Bitcoin and cryptocurrencies

Previous blockchain blogpost

Cryptocurrency is a digital payment maintained by a network of computers that uses cryptography to authenticate transactions. Depending on how investors expect to make money and how they are structured, some cryptocurrencies may count as securities. If traders of these currencies prop up the price and go online to spread gossips, that might count as fraud. It can be hard to determine if a bubble exists. The only way to ensure that they avoid a burst is mass adoption.

The first digital currency was Bitcoin mined by millions of people in different locations around the world. It was Satoshi Nakamoto, Bitcoin’s pseudonymous creator, who built its decentralized system that anyone could participate in, but no one could own. Although it was open to all, ironically, Bitcoin transactions were supposed to be anonymous. When Bitcoin came into being in 2009, the promise was to be the universal electronic currency that passed around the world in minutes. However, Bitcoin has qualities that make it not only a coin but also a store of value and a network of payments.

Store of value

The exponential jump in the rate of Bitcoin has stoked interest from big banks and even Wall Street. For example, in 2010, using the forum bitcointalk.org, a developer bought two pizzas by paying Bitcoins for the purchase. Fast-forward a few years, and the value of that Bitcoins shot up to 425 million dollars. They are now trading for more than $2,600/- but hardly anything to spend it on.

Network of payments

The software stores a continuously updated ledger that records all Bitcoin transactions. The code sets the scarcity of Bitcoin, and mining introduces new Bitcoins at regular intervals. This form of earning Bitcoins consists of solving the math problems necessary to confirm transactions. Successful solving of those problems using mathematical calculations triggers the creation of more currency.

Limitations of Bitcoins

A civil war is over the future of Bitcoin ever since its launch, and it is already showing strain. Bitcoin’s share of the market cap of all cryptocurrencies fell from 85% to 41%. Its price has soared and not dropped, but many rivals have risen even faster. Moreover, the Bitcoin network can only process seven transactions a second due to code limitations. This quantity is trifling considering that the system aspires to serve the masses. As the load increases, it takes time to confirm transactions, and customers have been at odds. The bickering threatens to condemn Bitcoin to obsolescence or divide the currency into two versions. All in all, although Bitcoin allows the transfer of value, it is slower and more limited in its capacity than some of its latest rivals.

Biggest cryptocurrency competitor

One of the biggest among the competitors of Bitcoin is Darkcoin, a portmanteau of digital cash. Part of the stellar success of Dash is due to Bitcoin’s flaws and limitations. This cryptocurrency emerged following Bitcoin’s rise in price in January 2014. Dash is one of the most popular digital currencies because it promised untraceable transactions. Although it saw plenty of dumping, its creator continued to add new features and refine the software. In 2015 it was rebranded as Dash so that it would not be mistaken for a single-feature coin. Gradually Dash gained legitimacy, and its currency’s total value has grown every year.

Advantages of Dash

A new payment method has to be easier to use, more secure and faster than others to attract customers. Bitcoin and the other digital currencies in the market fail on all these three metrics. Dash has functions and features to address such concerns and weaknesses that most others do not have. Also, Dash offers its users a quick send feature that is as easy as using a credit card. People who hold 1,000 coins and above are required to submit all future projects for a vote. The benefit of such a system is that it is a decentralized network that allows making decisions rapidly, avoiding conflicts such as that of Bitcoin, which has no way to compel anybody to adopt a new version.

The next version of Dash will include features that protect against fraud or theft such as moderated transactions. This function would allow funds to be released only upon the receipt of products, and vault accounts, which can stop an impending withdrawal of funds within 24 hours. The goal is to have a medium of exchange that can facilitate everyday commerce. The one of its kind governance system of Dash is its clearest innovation, one that is impossible to replicate.

Smartest cryptocurrency competitor

Ethereum’s creators have built a network that allows developers to create agreements written into the software. These intelligence contracts can dispense funds and perform functions automatically in response to triggers.

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Emergence of altcoins

Many of the players in the digital currency world, known as altcoins, were exclusively used as vehicles for use-and-discard schemes. An altcoin’s creator would often pour funds into a coin and build hype. Novices would jump in, the price would spike, investors would throw them away, and the amount would plunge downward.

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Bitcoin versus altcoins

People use many of the currencies younger than Bitcoin for much more versatile purposes. That means Bitcoin faces a threat from more nimble competitors such as Litecoin, Zcash, and Monero. On the other hand, just as Bitcoin struggle against the American dollar, new cryptocurrencies face an uphill battle against Bitcoin, which has the most significant user base and the broadest name recognition.

Today, there are many digital currencies in the world worth billions of dollars

Today, there are many digital currencies in the world worth billions of dollars

Total market value

Today, there are many digital currencies in the world worth billions of dollars. In 2017, digital currencies in aggregate had a total market value of approximately $100 billion. Based on market cap, the price of digital currencies can be possibly ten times that of the most significant companies.

Cryptocurrency becoming mainstream

People are using cryptocurrency wallets because retailers are now starting to accept them. Japan’s new legislation in April 2017 and Australia’s in July allows retailers to take Bitcoin as a legal tender. Ten financial institutions have put enough trust in Bitcoin that they use Ripple to send payments in real-time. There is a consensus among 56 companies worldwide on scaling Bitcoin, reaching an agreement on a settlement process.

Driver of innovation

Blockchain will disrupt every business, and digital currencies will drive new company model innovation, accelerating and scaling business outcomes at unprecedented levels. This revolution could be either a bubble or the onset of a financial realignment. Therefore, investors are cautiously bullish on the success of blockchain, which is crypto currency’s groundbreaking technology.

Coming up next:

Blockchain technology represents a seismic shift like that of email and web in the 90s and Facebook and Twitter a decade later.This innovative technology also makes Bitcoin and other cryptocurrencies possible without centralized authority. But cryptocurrencies are just the tip of the iceberg, much bigger and more essential things lie below the surface. Blockchain technology has the potential to create countless opportunities everywhere. 21.co, a blockchain startup founded by Dr. Balaji Srinivasan, is a compelling case in point.

Movement of cryptocurrencies in the market

Movement of cryptocurrencies in the market

Previous blockchain blogpost

The blockchain is the system behind cryptocurrencies. A basic grasp of how it works will prove to be sufficient for now. But in the future, this knowledge would hardly be enough. The question is how to start, and the answer is first to have an understanding of the fundamentals of blockchain. With the growth of the industry, it is possible to reach mass adoption. Even if it fails, Blockchain is here to stay and is a big game changer.

According to the white paper that launched cryptocurrency in 2009 under a pseudonym, it is a digital payment maintained by a network of computers on the Internet that uses cryptography to authenticate transactions. Cryptocurrency has seen a spike in all of its metrics such as search traffic, the number of press pieces, amount of sales and, most importantly, prices. The search traffic levels have tripled since 2017, and the keyword is near all-time highs for traffic. A glance at Google Trends for Ether, Bitcoin, and cryptocurrency indicates that there is a high correlation between price and traffic and all areas have had steady growth in traffic. Therefore, it is highly recommended always to keep an eye on the number of transactions and search traffic, because these metrics tell an underlying story about them.

Cryptocurrency networks will reach a large enough size at a certain point to run efficiently and be too big to failMoney market displacement

Cryptocurrency networks will reach a large enough size at a certain point to run efficiently and be too big to fail. The fervent believers of cryptocurrency say it could displace traditional money and even banks, but it is only worth the price someone is willing to pay for it, making it prey to significant changes in sentiments. Perhaps a look into the ownership of all cryptocurrencies and their dynamics might give a clue of that.

Ownership of cryptocurrencies

Bitcoin has the least ownership concentration among the cryptocurrencies. The top 100 Bitcoin holders control only 17.3% of the total supply, whereas, with Ether, the top 100 investors control 40% of all the issued currency. With coins such as Gnosis, Storj, and Qtum, large owners control 90%, and they are all part of the teams managing these projects. Industry watchers estimate that perhaps about 1,000 users hold 40% of Bitcoin. Since the viability of cryptocurrencies rests on their network size, Bitcoin is worth four times that of American Airlines and twice as much as Uber. People who hold large amounts of Bitcoin are known as whales in the industry. The whales stuck by Bitcoin through the pioneering days when it was derided and have known one another for years.

Trade of cryptocurrency

One of the paradoxes of cryptocurrency is that each new development appears to bring both promise and peril. The whales will not sell their holdings because they believe in its long-term potential. But as times change and prices go up, such linear thinking and calculation might change. Therefore investors worry about whales because if they sell just a portion of the holding, that can send the prices plummeting.

For example, Bloomberg noted that when someone moved Bitcoins worth about $159 million to an online exchange, Bitcoin traders started mulling over whether it meant the owner was selling the digital currency. At current prices, if each sells about half of their holdings, they can potentially prop up or tank the market. Moreover, many of the trading rules in this emerging industry are murky because regulators have been too slow to catch up. For now, Bitcoin and many currencies enjoy free trade while a few others have severe restrictions in place.

Unrestricted currency trade

There is no restriction against a deal in which a team agrees to purchase Bitcoin. If this transaction increases the price, they may cash out within hours. Such a sale is permitted because Bitcoin is not a security but a digital currency. At least some kind of fact sharing is legal, according to securities lawyers who monitor the cryptocurrency scenario. What’s more, many of the large owners can coordinate or preview their moves to a select few. Discussions of trading with one another among big traders of some cryptocurrencies are not illegal either.

Tracking biggest investors

Some hedge fund managers in the cryptocurrency industry do monitor trading activity of the most prominent investors. When they see movement, they call the likely sellers and get information on motivations behind their trading plans and sales. Some funds end up buying the holdings directly instead of going into the open market. And when they do that, the currency’s price does not get affected in any drastic way. This kind of gathering intelligence is legal, and the trading based on that is allowed.

Ordinary small investors

The downside is that it puts small buyers of digital currencies at a disadvantage. Ordinary investors do not have the standing required to get the whales to take their calls. They are also disadvantaged if they hold smaller digital tokens and currencies. They can only monitor addresses with vast holdings and begin heated discussions of market moves on online forums. But at the end of the day, ultimately they are in the dark on the plans and motives of large investors.

Restricted currency trade

According to the Securities and Exchange Commission of America, depending on how investors expect to make money and how they are structured, some digital currencies may count as securities. If traders of these currencies prop up the price and go online to spread gossips, that might count as fraud. A digital currency exchange named Bittrex once had to warn its users that it would terminate their accounts if they banded together into groups with the intention of manipulating prices.

The value of cryptocurrency has shot up nearly twelvefold since it’s beginning and its sale is in full swing now

The value of cryptocurrency has shot up twelvefold since it’s beginning

Entrance of investors

The value of cryptocurrency has shot up nearly twelvefold since it’s beginning and its sale is in full swing now. Hence the stock market and investors are bullish about cryptocurrency, even though it has had a shaky start. The recent increase in its price is difficult to explain because it has no intrinsic value. Some argue that this is no different than what is happening in more established markets. 

Bubbles

Bubbles

Bubble or reality

Currently, Bitcoin has a market capitalization of approximately $100 billion. With all of this attention to cryptocurrencies, many are wondering whether this is a bubble. It can be hard if not impossible to determine if a bubble exists in the crypto industry and when it might burst. However, the widespread and general belief is that it is not going to crash very soon. The only way to ensure that they avoid a burst is to transition into mass adoption. The current business environment does indicate mass adoption as the likely result.

Coming up next:

A war is over the future of Bitcoin, the first digital currency, and is already showing strain. Two of the biggest among the competitors of Bitcoin is Darkcoin and Ethereum. Many of the currencies younger then Bitcoin can be used for much more versatile purposes. Hence Bitcoin faces a threat from more nimble competitors. Digital currencies will drive new company model innovation at unprecedented levels. This revolution could be either a bubble or the onset of a financial realignment.

Mechanism of blockchain technology behind cryptocurrencies

Mechanism of blockchain technology behind cryptocurrencies

Previous blockchain blogpost:

In the real estate blockchain enables to store authentic online documents, draw digital smart contracts, and keeps the identities of the parties anonymous. While all sounds great, for everything to work seamlessly, it still needs a lot of things. As traders and investors have bid up Bitcoin’s price higher and higher, the Securities and Exchange Commission has suspended trading of some firms. Investors need to be cautious and not chase small companies that are trying to ride the wave.

These days Bitcoin, the most famous and the most substantial cryptocurrency, is always in the news. The technique called Blockchain, which is a database at its heart, serves as its public ledger. The blockchain technology sits on different devices and servers around the world. The blockchain is the operational system behind not only Bitcoin but also other cryptocurrencies. For example, Ethereum, the second-most famous cryptocurrency after Bitcoin, runs on a unique protocol using blockchain. Ethereum not only does currency but also allows programs and platforms to run on top. Firms such as ConsenSys has partnered with Microsoft to work on Ethereum applications. As the organizations that utilize it increases, blockchain technology will be ubiquitous.

Company applications abound

Blockchain

Blockchain

The potential applications of blockchain in any field or industry abound because it is ideal for currency. To cash in on this trend, startups in this realm have swollen dramatically in just a few months. Some firms have even boosted their assets and sales by professing links to the blockchain. Banks across the globe are making inquiries as to how to start their blockchains. There will be many marketing companies that would operate entirely on this technology and sell products through blockchain.

Fundamentals of blockchain

Blockchain

Blockchain

There may not be a need for every company in the world to focus on such bleeding edge technologies as blockchain. However, those who are appealing to younger and early adopters should be learning about blockchain. A basic grasp of how important it is and how it works will prove to be sufficient for now. In the future, this knowledge would hardly be enough, as the technology will be recording all digital information. The bigger question is how to start, and the answer is first to have a better understanding of the fundamentals of the blockchain.

Mechanism of transactions

The term transaction could be misleading as people think of it as exchanging currency between users. But in this context, it means a piece of information recorded by a miner to the blockchain. Miners are users with equipment and software to verify transactions or to build them into blocks.

Type of transactions

Most transactions are financial right now, for example, a Bitcoin tip to a musician from a fan. However, it could also include data, or a song upload, or a message that can be digitized. Other non-financial transactions and smart contracts such as keeping track of music license payouts, recording marriages, or issuing birth certificatescan also run on the blockchain.

Ten minutes transactions

All the recent operations in the past ten minutes are written to a new block and, like a chain, linked back to the old one. It is close to impossible to change anything because of the transaction’s duplicate nature. Also, it is a secure system as they are time stamped, encrypted, and verified by multiple users.

Hash links blocks

The mathematical procedure of assigning a value to complex data is known as a hash. A simple instance and a practical one would be numbering a list of names or places. Hashing is the process that links blocks together, and a faster miner completes more hashes per second. The system incentivizes these actions, which means whoever finishes the task first is entitled to a prize.

Inevitable mass adoption

While public awareness is a bit harder to track, cryptocurrency has quickly gone from a niche term to a common financial phrase. Every day, new press items inform people about how they can partake in this invention. An advantage of the daily media coverage is public awareness and education about what blockchain is, how they should evaluate cryptocurrency and what it can do. Only education and outreach can train people to look for possibilities in the industry because this is a new frontier in which many people find weaknesses.

Blockchain

Blockchain

As people become more comfortable and familiar with the crypto industry, their odds of participating increase. The good news is that the general understanding is rising rapidly, and there has been a shift in society in the recent past. With the growth of the industry, it is possible to establish the model for cryptocurrency and to reach the milestone of mass adoption. Some poignant trends and entrepreneurial practices are already pointing in this direction.

Launch new cryptocurrencies

There have been some initial coin offerings, which launch new cryptocurrencies. They have also ushered in a trendy wave of features and structures for the networks. These new offerings are more consumer-friendly than all other earlier adaptations. Whether this transition is for more specific functionality network or merely trying to set it up for optimal user experience, it is necessary for mass-market. For now, the coin offering market is surging and is the next significant chapter that is being embraced even by traditional investors.

Decentralised gaming ecosystem

The Game Protocol is a promising and upcoming initial coin offering for a decentralized gaming ecosystem. It is a platform for developers to create and advertise games on the blockchain. It will also provide developers with the necessary tools to distribute their work while allowing game creators to raise funds to implement them. This process eliminates the biases within other fundraising platforms and centralized marketplaces.

Digital blockchain purse

An upcoming initial coin offering is the Divi Project that is aiming to build an intuitive smart wallet and is also tackling the issue of gender-divide prevalent within the crypto industry. Sadly, women currently make up only 5-7% of the total cryptosystem users in the world. Divi is changing this by creating an ecosystem that is appealing to women. Their innovations would allow the average person who has no familiarity with code or technology to enter this space confidently.

Interconnected blockchain applications

Bitcoin may be the money of the Internet, but its successors will build interconnected blockchains running countless applications. Building bonds between blockchains would enable users to flow smoothly from Dash to Bitcoin to Zcash to Ethereum, strengthening the entire ecosystem.It is a revolutionary concept because it provides a system of data transmission and independent verification that does not rely on financial institutions or government. Even if it eventually fails, Blockchain, the technology behind it, is here to stay and could very well change the Internet.

Coming up next:

Cryptocurrency is a digital payment. A network of computers that uses cryptography to authenticate transactions maintains it. Depending on how investors expect to make money and how they are structured, some cryptocurrencies may count as securities. If traders of these currencies prop up the price and go online to spread gossips, that might count as fraud. It can be hard to determine if a bubble exists. The only way to ensure that they avoid a burst is mass adoption.

Creation of value through blockchain technology

Creation of value through blockchain technology

Previous blockchain blogpost:

We are experiencing a significant shift in the real estate industry, as more and more people are engaging in property transactions using Bitcoin. Many industry experts are excited about the potential for digital money and the blockchain technology when it comes to real estate. But although digital currency transaction is the future, industry insiders say that we are not quite there as yet. Digital money analysts are less convinced that the property market would more widely adopt the cryptocurrency.

Creation of value through blockchain technology

The blockchain is the culmination of all the platforms such as Napster, Skype, and BitTorrent that operate on peer-to-peer networks. It is the infrastructure of the digital currency and is described as an open, shared, and distributed ledger. A process known as cryptography creates digital currencies and additional units of them. It also verifies the transfer of assets and secures the cryptocurrency transactions in the blockchain.

Global peer network

The blockchain is a network that verifies every transaction, which then becomes a new block of data. Blocks are nothing but lists of linked records that keep growing continuously. When this data gets added to the blockchain, the recorded value is available to all the users of the network. This revolutionary technology is maintained simultaneously across millions of computers without any central data storage. In short, blockchain is a spreadsheet that can record verifiable transactions efficiently and permanently.

Value exchange network

Fans and advocates of the technology hail it as an efficient global network of value exchange. A very high level of security within the blockchain technology leaves no room for failure. Part of the efficiency is because of its ability to generate value for the community of keepers. In the real estate industry blockchain enables to store authentic online documents, draw digital smart contracts, and keeps the identities of the parties anonymous.

Authentic online documents

While accepting digital payments in real estate transactions is new, this cannot change the status quo. It can only change if the government used blockchain to store all the data of the industry there. If blockchain can facilitate moving land records to an immutable online ledger, no one could go back and manufacture records out of thin air. A huge benefit of such an initiative would be fraud prevention, which amounts to someone producing false paper documents that look authentic.

Digital smart contracts

If verified and quality data about potential buyers and properties were available on the blockchain, it is possible to draw intelligent treaties. These are legal agreements written in computer code with programmed rules to direct the flows of money. No more sit-downs between escrow agents, lawyers, and brokers to review paper documents. The system would have it all and would run smoothly and quickly, provided the data regarding properties and people in the blockchain is accurate.

Parties remain anonymous

Cryptocurrency payments offer anonymity because they are digital that in some cases require just an email address to acquire them. Blockchain could protect the buyer’s anonymity by allowing interested parties to ask questions without revealing who the person behind it was. The fact that the owners can also remain anonymous is a significant appeal to some in the luxury real estate market.

Bottlenecks of implementation

While all sounds great on paper, for everything to work seamlessly, it still needs a lot of things in place. The first challenge comes down to how to authenticate and qualify the data for the real estate sector. Moreover, there are severe logjams in the real estate industry with the manual dissemination and collection of data. Then there are questions about how to regulate or tax those purchases; how to deal with Bitcoin payments that stay in the native cryptocurrency, versus those that people convert to cash; and who has access to query and search data in the blockchain. Although blockchain and cryptocurrencies are here to stay, that will require stakeholders including real estate attorneys, escrow agents, and brokers to get involved.

Digital wealth creators

Currency

Currency

Nowadays there are smart platforms in the crypto industry that create wealth and value. The platforms allow people to lend Bitcoins and receive daily interest on the investment. But first Bitcoin has to be transferred to an account, and all transactions will have to be with Bitcoin.

Emerging crypto investment

The crypto business and the hype behind blockchain remind us clearly of the tech stock and dotcom manias of the 1990s. It sounds a bit like the early days of the Internet, which blossomed when investors were chasing the most speculative stocks that did not end well. Capital One, a software company, is a case in point that went public at $21/- a share. By the end of the year, the share price surged to $1,000/-, however, five years later it filed for bankruptcy.

Largest Bitcoin exchange

Mt. Gox

Mt. Gox

However great the promises, technology always have one mitigating factor, and that is humans. A few years ago, Mt. Gox, the Bitcoin exchange, built on the blockchain, burned and crashed. When it filed for bankruptcy, a large number of Bitcoins went missing from the accounts because of a problem with its code. Mt. Gox was not the only digital enterprise that went down. There were many others too. But that does not by any means mean that Bitcoin is a bubble waiting to be burst.

Concerns by authorities

As traders and investors have bid up Bitcoin’s price higher and higher, the Securities and Exchange Commission have suspended trading of some firms, most notably The Crypto Company. The Security Exchange Commission authorities cite concerns regarding the adequacy and accuracy of information about compensation paid and plans for insider sales. Lately, it has also taken steps to crack down on potential scams and frauds surrounding digital currencies, especially with initial coin offerings. The sale of a digital token to investors instead of stock is known as initial coin offerings. Several cryptocurrency officials are worried about the industry getting a bad name too. Hence they are willing to cooperate with Security Exchange Commission and other regulators to weed out bad actors.

Hopeful but cautious

There is a promising and emerging trend towards digital payments using blockchain

There is a promising and emerging trend towards digital payments using blockchain

There is a promising and emerging trend towards digital payments using blockchain. But investors need to be cautious and not chase small companies that are trying to ride the wave. Currently, Bitcoin’s adoption rate is about 1%, however with scarcity and demand comes value appreciation. So, as the adoption grows, there is hope that Bitcoin’s value will increase substantially. After all, many of today’s tech companies, such as Amazon, Microsoft, and Apple, survived the dotcom tragedy and are now doing better than before.

Coming up next:

The blockchain is the system behind cryptocurrencies. A basic grasp of how it works will prove to be sufficient for now. But in the future, this knowledge would hardly be enough. The question is how to start, and the answer is first to have an understanding of the fundamentals of blockchain. With the growth of the industry, it is possible to reach mass adoption. Even if it fails, Blockchain is here to stay and is a big game changer.

Real-estate transactions using Bitcoin

Real-estate transactions using Bitcoin

Previous blockchain blogpost:

Blockchain is the new change on the horizon. Although it is already in the financial world, the uses of blockchain are far more wide reaching. It is shaking up many sectors along with all industries including supply chain, corporate responsibility, fashion designing, and digital advertising. To accept Bitcoins, all the company needs is a Bitcoin button at the checkout and a digital wallet. It works like a cycle whereby the publishers and users receive tokens when they view the ads.

Real-estate sector transactions using Bitcoin

At its heart, Bitcoin is essentially a cryptocurrency. Blockchain backs this peer-to-peer payment system using networks. Blockchain is a digital ledger that distributes and stores information but produces no copies of it. It is a public ledger that every user, who keeps it updated, can share amongst them. The blockchain is the cutting edge technology that mines Bitcoins and other cryptocurrencies.

Offers greater cybersecurity

The fascinating thing about blockchain is that a set of blocks makes up the transaction history. These chain-like configuration is unchangeable. It takes a vast majority of participants to change the transaction history of the ledger. With the increasing number of people using blockchain, changing it is next to impossible. In the future, when there is a substantial mass adoption, it will be even more secure. Thus the unalterable nature of the transactions in the ledger offers greater cybersecurity.

Decentralised payment system

Users around the world employ tens of thousands of computers to manage the Bitcoin network. This digital ledger is decentralized which means every computer of the users records it. Unlike a physical bank, where transactions are stored and managed privately only by a bank, blockchain is outside of any central repository. There is no bank, authority, government, administrator or national treasury that sets any regulations on it. This phenomenon explains why hundreds of companies such as Victoria’s Secret and Subway accept Bitcoins as a form of payment.

Investing in Bitcoin

When Bitcoin came into being in 2009, it was worth one cent, and when it went mainstream in 2011, it rose to a dollar. That means that investors who converted government-backed currency into digital currencies in its first couple of years are now millionaires. These investors are currently looking to divest them into real estate properties and other assets.

Real estate industry

We are experiencing a significant shift in the real estate industry, as more and more people are engaging in property transactions using digital money. In cities like Los Angeles, Miami, and London, people purchase more expensive properties with Bitcoin. Stories abound of developers accepting Bitcoins for new projects in Dubai and New York.

Bitcoin price tag

Selling a house in England is getting harder with four in ten sellers reducing prices. Although London’s prime property market is in the midst of a downturn, one £17 million mansion has seen unprecedented interest from the young demographic because they could buy it in Bitcoin. Ever since dozens of media outlets including Reuters and Sky picked up the news of the sale, the owner has given over 50 interviews. Even news of much lesser value houses elsewhere in Britain had generated national headlines when a Bitcoin price tag was attached to them.

Advantages of Bitcoin

Other than free publicity for the houses, there are many benefits to Bitcoin property game. A Bitcoin transaction is cheaper as it cuts costs by eliminating third parties. The fee to process the transaction is only 1%, which is a requirement for Bitcoin transfers. Also, digital sales are compelling in international property markets because they are quick and in some cases even instantaneous. They remove the need for transfers between foreign banks and currency conversions, which can slow down the process by taking weeks or even months. Moreover, it is more transparent than the method for tracking fiat money as the firm just checks the legitimacy of the prospective Bitcoin buyers.

Buying property in Bitcoin essentially involves fixing the price in fiat money and then converting it to Bitcoin

Buying property in Bitcoin essentially involves fixing the price in fiat money and then converting it to Bitcoin Source: Bitcoin Magazine

Virtually nil volatility

Buying property in Bitcoin essentially involves fixing the price in fiat money and then converting it to Bitcoin. But the property seller absorbs none of the volatility as long as they exchange it back to fiat money as soon as the transaction is complete. Among other benefits, it is also easier and more efficient than traditional currency from a technical perspective. Many industry experts are excited about the potential for digital money and blockchain when it comes to real estate. But although digital currency transaction is the future, insiders say that we are not quite there as yet.

Mass adoption obstacles

Bitcoin analysts are less convinced that the property market would more widely adopt the cryptocurrency. First, the mechanics to convert their cryptocurrency into fiat money is very limited. Second, the significant cost of processing Bitcoin on that scale likely makes doing so less appealing. But the biggest problem is the fact that Bitcoin and property appeal to different types of investors. Moreover, Bitcoin and other cryptocurrencies are highly volatile, but real estate is a much more stable asset. It will not see full mass adoption in the property market for as long as cryptocurrencies remain volatile. 

All digital currencies

Bitcoin is not the only cryptocurrency, but there are plenty of others to choose from including Litecoin, Peercoin, Digitalcoin, and Ripple

Bitcoin is not the only cryptocurrency, but there are plenty of others to choose from including Litecoin, Peercoin, Digitalcoin, and Ripple

Cryptocurrency is a word that refers to all the digital currencies that use blockchain. Bitcoin is not the only cryptocurrency, but there are plenty of others to choose from including Litecoin, Peercoin, Digitalcoin, and Ripple. They are not physical cash or coins but rather virtual currencies stored in a digital wallet. It is more or less like a foreign currency whose value is still affected by demand and supply, world happenings, and government policy.

Cryptocurrency

Cryptocurrency

Connection between cryptocurrencies

As Bitcoin’s value skyrockets, stories about digital currencies have become dominant. There is a loose connection between all digital money, as a boost in Bitcoin typically means a spike in other currencies. In other words, when Bitcoin rises in value, there is usually a series of small rises in other currencies during the same period. Ether and other tokens will follow Bitcoin’s expansion pattern because most of Bitcoin’s milestones follow a continued growth trajectory. However, these fluctuations are not necessarily good predictors of future behavior. Crypto investors will be able to forecast how closely other currencies will follow Bitcoin with the completion of user metrics, awareness, and valuations. But caution should be exercised when investing, as they are exposed to low-likelihood risks and are more volatile than traditional stocks that could trigger a market crash and be devastating.

Coming up next

In the real estate blockchain enables to store authentic online documents, draw digital smart contracts, and keeps the identities of the parties anonymous. While all sounds great, for everything to work seamlessly, it still needs a lot of things. As traders and investors have bid up Bitcoin’s price higher and higher, the Securities and Exchange Commission has suspended trading of some firms. Investors need to be cautious and not chase small companies that are trying to ride the wave.