Tag: crypto

Posted on

What is Web 3.0? Metaverse?

What is Web 3.0 or the Metaverse? Sure, you’ve probably already heard that Facebook changed it’s name to “Meta”, but what does that really mean?

In order to understand this concept, let’s take a quick look at the history of the internet or the world wide web! The nascent days of the internet were basically from the early 90’s until the early 2000’s, as we watched the start of email (my first email account was dan@aol.com !!) and the creation of the first web sites. These sites were basicly static pages which contained information, but not yet e-commerce capabilities. This is referred to now as Web 1.0.

As the internet developed, along with bandwidth access speeds, applications, and services, we watched the evolution and migration towards Web 2.0. In fact, we are still in the Web 2.0 stage today! This included a new world of user-created content (social media) and blogs, as well as the idea of the Web as a platform.

While some industry titans like Elon Musk believe Web 3.0 is simply a buzzword, most of the crypto/defi/blockchain world is ready to prove him wrong! So What is Web 3.0? It is the next iteration of the world wide web which utilizes the underlying technology of the blockchain to provide users with a truly decentralized access to technology vs the centralized (stored and controlled) system in Web 2.0.

To take an excerpt from a recent Forbes article…”Web 3.0’s decentralized blockchain protocol will enable individuals to connect to an internet where they can own and be properly compensated for their time and data, eclipsing an exploitative and unjust web, where giant, centralized repositories are the only ones that own and profit from it.”

How does this definition compare to the Metaverse? Well, the metaverse is an extension of Web 3.0 creating a virtual world, or worlds, where the users can participate in the virtual world through the use of virtual and augmented reality headsets. While most of you think this means gaming or shopping, it’s so much more.

Let’s look at what happened during the Covid pandemic. Many people in the world learned that they could continue productive employment from the comforts of home. Zoom became an verb just like the word Google where daily lives transformed from the office to the couch, kitchen table, or backyard! Now imagine several years in the future where instead of commuting for an hour to the office, you simply slip on your headset, fire up your computer, and walk into the office (virtually!) to participate in your first meeting of the day with your other colleagues whom are already in the room! You take turns providing updates on recent product changes and sales, and then the Manager shows a five minute presentation about upcoming new product launches and sales objectives. Anything you can imagine in the course of your daily life can be transformed to the Metaverse world of the Web 3.0!

Does that apply to manufacturing, the service industry (restaurants and bars, etc.)? Of course not! But is has been estimated that the inclusion of Artificial Intelligence (AI) into the development of Web 3.0 will have a dramatic increase in the efficiency of Web 3.0 rollout compared to Web 2.0 (we are about 20 years into Web 2.0). So, if Moore’s Law** is accurate ((**Moore’s Law states (in layman’s terms) that the computing power of chips and processors will increase very couple of years, and we will pay less for them)) is it reasonable to expect a functional transition to Web 3.0 in 10 years?

Bringing artificial intelligence and natural language processing together with Web 3.0, businesses of all sizes across the globe can use this powerful combination to give their customers faster and more relevant results. Stay tuned if you want to learn more about AI!

Posted on

What is Cardano?

Cardano is a Proof-of-Stake Blockchain platform

Cardano (ADA) is a third-generation, decentralized proof-of-stake (PoS) blockchain platform designed to be a more efficient alternative to proof-of-work (PoW) networks. Scalability, interoperability, and sustainability on PoW networks like Ethereum are limited by the infrastructure burden of growing costs, energy use, and slow transaction times.

Yes, Cardano is a form of cryptocurrency. It can be purchased on most crypto exchanges. When evaluating the use of crytpo and the underlying technology, I like to first understand What does it do, and What is it used for? Like most crypto, ADA can be used to true peer-to-peer transactions where there is no use of a middleman (a credit card, a bank card, etc. all act as a middleman, and collect a fee for the service they provide).

Cardano is an ambitious project, and there are many potential uses for its technology across a variety of industries.

For a current, real-world example, we have Cardano’s partnership with the Ethiopian Ministry of Education. Cardano’s blockchain will store tamper-proof records for five million Ethiopian students. When those students pursue higher education and jobs, they’ll have their records and achievements available on the blockchain.

Here are other use cases for Cardano in different sectors:

  • Health care: Cardano’s blockchain can authenticate pharmaceutical products to avoid the risk of buying counterfeit medications.
  • Finance: Cardano can be used in developing countries as a record of people’s identities and to demonstrate their creditworthiness.
  • Agriculture: Blockchain technology can provide reliable supply chain tracking for farmers, hauliers, and merchants.

Charles Hoskinson, the co-founder of the proof-of-work (PoW) blockchain Ethereum, understood the implications of these challenges to blockchain networks, and began developing Cardano and its primary cryptocurrency, ada, in 2015, launching the platform and the ada token in 2017

The Cardano platform runs on the Ouroboros consensus protocol. Ouroboros, created by Cardano in its foundation phase, is the first PoS protocol that not only was proved to be secure, but also was the first to be informed by scholarly academic research. Each development phase, or era, in the Cardano roadmap is anchored by the research-based framework, incorporating peer-reviewed insights with evidence-based methods to make progress toward and achieve the milestones related to the future directions of the use applications of both the blockchain network and the ada token.

As of the writing of this, 73% of the Cardano token supply is staked* (see my prior post on staking). The total circulating supply of ADA is only 33.26 billion coins, meaning that only less than 10 billion are not staked.

Ouroboros is the first peer-reviewed, verifiably secure blockchain protocol, and Cardano is the first blockchain to implement it. Ouroboros enables the Cardano network’s decentralization, and allows it to sustainably scale to global requirements without, crucially, compromising security.

The protocol is the culmination of tireless effort, building on foundational research, and is propelled by a vision for more secure and transparent global payment systems, and a means to redistribute, more fairly, power and control.

Remember, Cardano is a software platform ONLY and does not conduct any independent diligence on, or substantive review of, any blockchain asset, digital currency, cryptocurrency or associated funds. You are fully and solely responsible for evaluating your investments, for determining whether you will exchange blockchain assets based on your own judgement, and for all your decisions as to whether to exchange blockchain assets with Cardano. In many cases, blockchain assets you exchange on the basis of your research may not increase in value, and may decrease in value. Similarly, blockchain assets you exchange on the basis of your research may fall or rise in value after your exchange.

Past performance is not indicative of future results. Any investment in blockchain assets involves the risk of loss of part or all of your investment. The value of the blockchain assets you exchange is subject to market and other investment risks

If you would like to read more about Cardano, click this link.

Posted on

What is Crypto Staking?

What is staking? Image Credit Motley Fools

If you’re a crypto investor, or just starting out in crypto, staking is a concept you’ll hear about often. Staking is the way many cryptocurrencies verify their transactions, and it also allows participants to earn rewards on their holdings.

But what is crypto staking? Staking cryptocurrencies is a process that involves committing your crypto assets to support a blockchain network and confirm transactions.

It’s available with cryptocurrencies that use the proof-of-stake model to process payments. This is a more energy-efficient alternative to the original proof-of-work model. Proof of work requires mining devices that use computing power to solve mathematical equations.

Staking can be a great way to use your crypto to generate passive income, especially because some cryptocurrencies offer high interest rates for staking. Before you get started, it’s important to fully understand how crypto staking works.

With cryptocurrencies that use the proof-of-stake model, staking is how new transactions are added to the blockchain.

First, participants pledge their coins to the cryptocurrency protocol. From those participants, the protocol chooses validators to confirm blocks of transactions. The more coins you pledge, the more likely you are to be chosen as a validator.

Every time a block is added to the blockchain, new cryptocurrency coins are minted and distributed as staking rewards to that block’s validator. In most cases, the rewards are the same type of cryptocurrency that participants are staking. However, some blockchains use a different type of cryptocurrency for rewards.

If you want to stake crypto, you need to own a cryptocurrency that uses the proof-of-stake model. Then you can choose the amount you want to stake. You can do this through many popular cryptocurrency exchanges.

Your coins are still in your possession when you stake them. You’re essentially putting those staked coins to work, and you’re free to unstake them later if you want to trade them. The unstaking process may not be immediate; with some cryptocurrencies, you’re required to stake coins for a minimum amount of time.

Staking isn’t an option with all types of cryptocurrency. It’s only available with cryptocurrencies that use the proof-of-stake model.

Many cryptos use the proof-of-work model to add blocks to their blockchains. The problem with proof of work is that it requires considerable computing power. That has led to significant energy usage from cryptocurrencies that use proof of work. Bitcoin in particular has been criticized over environmental concerns.

Proof of stake, on the other hand, doesn’t require nearly as much energy. This also makes it a more scalable option that can handle greater numbers of transactions.

How to Stake

As previously noted, not all cryptocurrencies offer staking. You need a cryptocurrency that validates transactions with proof of stake. Here are a few of the major cryptocurrencies you can stake and a little bit about each one:

  • Ethereum was the first cryptocurrency with a programmable blockchain that developers can use to create apps. Ethereum started out using proof of work, but it’s transitioning to a proof-of-stake model.
  • Cardano is an eco-friendly cryptocurrency. It was founded on peer-reviewed research and developed through evidence-based methods.
  • Polkadot is a protocol that allows different blockchains to connect and work with one another.

Start by learning more about any proof-of-stake cryptos that catch your eye, including how they work, their staking rewards, and the staking process with each one. Next, you can look for the crypto you want and buy it on cryptocurrency apps and exchanges. More on that topic will be coming soon!

Where to Stake?

Many of the cryptocurrency websites support staking directly through their site. You can also conduct research online, and find the most reputable sites and staking opportunities with the least amount of risk compared to the reward you are seeking. One example is a site called Looks Rare. Looks Rare is an NFT trading platform that, as of the time of this article, provides over 200% interest paid in WETH (Wrapped Ethereum) and their own tokens called LOOKS. (This is NOT an endorsement of Looks Rare*)

Posted on

Crypto ABC’s Part IV

Credit and thanks to Nick Black!

Market cap: The total value of all the coins of a particular crypto. Calculated by multiplying the current price per coin by the total number of coins in circulation. Typically used to rank cryptos, such as on the website CoinMarketCap.com. As of this writing, the total market cap for the entire crypto space is $1,958,973,106,141.

Maximalist: A person who believes in the primacy of one cryptocurrency over all others. Most frequently applied to adamant Bitcoin advocates: “He’s such a Bitcoin maximalist.”

MetaMask: A browser-based crypto wallet that is installed as an extension. Allows you to send Ethereum to individuals and businesses, store Ethereum and ERC-20 tokens, and store non-fungible tokens (NFTs) and collectibles.

Metaverse: A virtual world where people gather to live, work, and shop. First coined in the 1992 science fiction novel Snow Crash by author Neal Stephenson, the metaverse has gone from a means of “escaping” the real world to a lucrative market that Goldman Sachs and Morgan Stanley are projecting could reach $8 trillion over the next two decades. By using special hardware and software – such as a smartphone or a dedicated headset like the Oculus – users can have an immersive experience where it actually feels like you’re inside the virtual environment. Corporations are already staking their claim in the metaverse.

Microcurrencies: Microcurrencies refer to a new class of “penny cryptos.” These coins sell for pennies on the dollar but have racked up some of the biggest gains we’ve seen anywhere, even crushing gains made by Bitcoin by 75X, 211X, even 5,567X more in the same time frame.

Mining: The process of using hash rate power to solve a math problem, then verifying the most current transactions and adding a block of data to that cryptocurrency’s blockchain. Mining is used in cryptocurrencies that employ proof of work, such as Bitcoin. The miner that solves the block receives a mining reward of a set amount of the cryptocurrency being mined. Mining success depends on having hardware with a high combined hash rate.

Monero (XMR): This cryptocurrency was designed with a focus on privacy features. It’s extremely difficult, if not impossible, to trace transactions on the Monero network.

Moon: A way of expressing optimism that a cryptocurrency’s price will skyrocket/is skyrocketing, as in “To the moon!” Another popular variant is “When moon?” (See Lambo.)

Mt. Gox: In Bitcoin’s early days, Tokyo-based Mt. Gox was by far the biggest exchange, handling more than 70% of all trading. The name is actually an acronym for Magic the Gathering Online Exchange, as it had started out as a way to trade the digital playing cards for that well-known game. But the exchange was poorly run and subject to hacks that depleted its reserve of bitcoins. Mt. Gox went dark in February 2014, and days later reported the loss of 850,000 customer bitcoins. About 200,000 bitcoins were later found. But with the case moving slowly through the Japanese legal system, former customers have so far received no compensation.

Multi-sig: Short for multi-signature, it means more than one digital signature is required to authorize a transaction. Adds another layer of crypto security. Also can play a role in smart contracts that involve more than two parties.

N

Nakamoto, Satoshi: The pseudonym used by the person or group of people who wrote the Bitcoin white paper as well as the original code that runs the Bitcoin network. This person or group remains anonymous, as all attempts to uncover Nakamoto’s identity have failed. Australia native Dr. Craig S. Wright claims to be Nakamoto but so far has been unable to prove it.

Nifty Gateway: An online marketplace for non-fungible tokens (NFTs) where people can buy and sell digital goods such as collectibles, gaming items, and digital art. This is Nick’s favorite platform to use and the one he would recommend to beginners.

No-coiner: A person who owns no cryptocurrency. Term is typically used to describe a cryptocurrency skeptic.

Node: Any computer that connects to the Bitcoin network is a node. A computer that maintains an up-to-date copy of the blockchain and is able to verify all the rules of a cryptocurrency is a full node. To run a full node requires a copy of that cryptocurrency’s network software. Any type node can also serve as a wallet.

Non-custodial: This term refers to the private keys that control who can spend or move crypto in a wallet. Non-custodial means the user has the crypto in a wallet they control directly, as opposed to keeping coins on an exchange.

Non-fungible token (NFT): A unique token on a blockchain that cannot be replicated. NFTs can be used to represent digital art or even real-world assets. The sale of an NFT grants ownership of the asset it represents to the buyer. NFTs can be bought and sold like any other asset.

O

OpenSea: The current leading NFT marketplace.

Oracle: An oracle is an online trusted source of data used by a smart contract to settle the contract. Some crypto projects, such as Chainlink (LINK), were created to serve as oracles.

P

Paper hands: The tendency to panic sell your crypto at the slightest sign of trouble. The opposite of diamond hands.

Paper wallet: A piece of paper that contains a private key and a Bitcoin address. Somewhat of a misnomer since a paper “wallet” can’t actually store any cryptocurrency.

Peer-to-peer: The exchange of data – or in this case, cryptocurrency – between parties over a network without the need for a third party like a bank.

Pizza Day: The anniversary of the very first commercial transaction with Bitcoin, May 22, 2010. A programmer named Laszlo Hanyecz bought two pizzas for 10,000 bitcoin.

Pre-mine: When the supply of a cryptocurrency is created in advance of its launch, as opposed to the creation of supply over time by some method such as mining. Frequently used by ICOs.

Private key: A very long password used to unlock your cryptocurrency so you can withdraw it from your wallet to spend, sell, or send to another address. Losing or forgetting your private key means permanently losing access to your crypto. Anyone who gains access to your private key can steal your cryptocurrency. Never, ever, ever share your private key with anyone ever under any circumstances.

Proof of stake: An alternative system for securing a network and maintaining a blockchain. In proof of stake, users put up collateral tokens of a crypto (their “stake”) in return for becoming a “validator” of its blockchain – the same function as miners in a proof-of-work system. For each block, the network chooses a validator at random to record and verify the data. The chosen validator earns fees for performing that task; the larger the stake, the higher the odds of being selected to validate a block. Ethereum has plans to move to a proof-of-stake system.

Proof of work: As computers mine cryptocurrency, they expend computing power (measured by their hash rate) in an effort to be the first to solve a math problem. The winner verifies the next block in the blockchain and receives a reward. The computing power expended is the “proof of work” that tells the network the winning miner has earned that reward.

Protocol layers: Think of these as the roads and highways that connect the entire cryptocurrency space. Cryptos like Polkadot (DOT) and Algorand (ALGO) fall into this category.

Pseudonymous: Most cryptocurrencies, including Bitcoin, are only partly anonymous. Because a cryptocurrency address is simply long string of numbers and letters, it offers some level of privacy. But it is often possible, with some effort, to link those addresses to individuals. Privacy-oriented cryptocurrencies such as Monero have additional code to make it virtually impossible to link addresses to individuals, and are considered truly anonymous.

Public key: The wallet address (the alphanumeric string of letters and numbers) you give to others in order to receive cryptocurrency.

R

REKT: A phonetic spelling of “wrecked.” This term was borrowed from the online gaming community, where it describes a person who suffered an especially bad beat. In cryptocurrency, it means a severe financial loss: “When Bitcoin crashed in 2018, I got REKT.”

Ripple: A source of constant confusion outside of the crypto community (and sometimes within it). Ripple is the company that created the XRP cryptocurrency in 2012. It incorporates XRP into its business of facilitating payments between financial institutions. But XRP should not be referred to as “Ripple,” which is a common mistake. And XRP advocates will call you out on it.

Rug pull: A scam crypto project that “pulls the rug out” from investors by enticing them to swap a valuable crypto like Ethereum for a new token that promises massive gains. The scammers then drain liquidity for the coin from its trading pools on DeFi exchanges, making it near impossible to sell and leaving victims with worthless tokens. Also known as “getting rugged.”

S

Satoshi: The smallest unit of Bitcoin. One satoshi is equal to 0.00000001 bitcoins (one hundred-millionth of a bitcoin). Also referred to as “sats” for short. Named in honor of Bitcoin’s creator, Satoshi Nakamoto.

Scamcoin: Cryptocurrencies with no real purpose other than to fool investors, thus enriching the coin’s creators at the expense of the investors. Most often found among ICOs. Sometimes used derisively by crypto enthusiasts for a coin they dislike, regardless of whether it is an actual scam.

Security token: A cryptocurrency backed by an asset such as gold, real estate, or other investable assets such as ETFs. A security token must comply with the Howey test. Allows for a single physical asset to be subdivided digitally among many owners (one gold could be split into 100 security tokens owned by 100 different people). The initial sale of this variant is called an STO (security token offering). Considered a safer, better-regulated alternative to ICOs.

SegWit: A portmanteau of the phrase “segregated witness,” a technology introduced to the Bitcoin protocol in July 2017. By changing how the data is stored, SegWit makes it possible to squeeze more transactions into each Bitcoin block, thus helping to address Bitcoin’s scaling problems. SegWit also fixed an issue called transaction malleability, which opened the door to second-layer technologies such as the Lightning Network.

Sharding: A process of slicing up a large blockchain into smaller pieces to make it easier for the network’s nodes to manage. Instead of each node storing the entire blockchain, it need only process a part of it. Sharding allows less powerful computers to participate in a cryptocurrency network and aids scaling. Sharding is expected to be implemented on the Ethereum network by 2021.

Silk Road: An online market on the dark web (invisible to search engines like Google) that the FBI shut down in 2013. On Silk Road, people could use Bitcoin to buy and sell legal products as well illegal drugs. The association with the illegal activity created a cloud over Bitcoin that lasted for years.

Slippage: On a crypto exchange, a change in the price of a market order between the time it is placed and the time it is executed. The likelihood of slippage increases during times of high market volatility.

Smart contract: A “self-executing” contract that uses cryptocurrency as both the defining and the enforcement mechanism. The contract executes when the software determines that the conditions set forth in the code (and agreed upon by the participants) have been met. Often data from an oracle is used to determine if the contract conditions are met. Once executed, the smart contract is recorded as part of that cryptocurrency’s blockchain database – thus creating a permanent record of the contract.

Stablecoin: A cryptocurrency designed to have constant value relative to some other asset or group of assets. Most stablecoins are pegged to the U.S. dollar, though some are pegged to gold or other commodities. In theory, the administrators of a stablecoin should hold an amount of the pegged asset equal to the value of all the units of that stablecoin. So if there are 10 million units of a stablecoin backed by the U.S. dollar, the administrators should have $10 million in an account to back it.

Staking: Crypto staking involves committing some or all of a particular crypto you hold to help validate transactions on as well as maintain that crypto’s blockchain network. In return, stakers earn rewards at regular intervals. Usually your crypto must be “locked” on the network for as long as you keep it staked.

T

Token: A digital asset distinct from a cryptocurrency (like Bitcoin), although the terms are often confused. There are three basic types: a utility token, which provides access to a product or service offered by the company that created it; a security token, which represents an asset; and an equity token, which represents ownership in a company (like a share of stock does). Token projects are usually built on top of an existing crypto network such as Ethereum.

Tokenomics: The details of how a specific cryptocurrency works. It includes how the coins are created, the maximum supply, the means of distribution, how many coins are retained by the project’s creators as well as the conditions under which they might be released or sold, and, if applicable, how coins are “burned” (destroyed) as part of supply management.

Total value locked: The aggregate value of all the assets staked in a DeFi platform (usually expressed in U.S. dollars).

Transaction fee: A payment associated with a cryptocurrency transaction. Fees usually go to those who maintain the network (in the case of Bitcoin, miners get the fees). Fees can vary widely depending upon the cryptocurrency, but are usually very small.

Transactions per second (TPS): The number of transactions a cryptocurrency’s underlying network can process in one second. The higher the TPS, the better the network’s ability to handle surges in activity.

Trustless: A quality of most cryptocurrencies in which no party need trust another, a product of having no central authority. With crypto, the network processes a transaction and writes it into the blockchain (the digital ledger) for all other nodes to verify. This eliminates the need for a trusted third party such as a bank to process and verify transactions.

Turing complete: A programmable system capable of solving any computational problem. Some cryptocurrencies, such as Ethereum, are considered Turing complete – programs (known as dApps) can be executed on the network itself.

U

UniSwap: One of the most popular decentralized crypto exchanges where user can simply “swap” one crypto for another. See decentralized exchange.

Utility token: A type of cryptocurrency token designed to provide access to a particular product or service offered by the company that created it.

UTXO: Unspent transaction output – how a network tracks cryptocurrency ownership. Each time a person receives crypto into their wallet, it creates a new UTXO in that amount. All of the UTXOs in a wallet, and the amounts of crypto they represent, adds up to how much crypto that wallet holds in total.

V

Validator: On a proof-of-stake network, a participant tasked with verifying transactions on the network. Validators typically must “stake,” or lock, a certain amount of the crypto asset to qualify as a validator. Validators typically earn rewards for performing this role. Validators are the equivalent of miners on a proof-of-work network.

Ver, Roger: One of the earliest investors in Bitcoin, Ver became a tireless evangelist for the cryptocurrency and earned the nickname “Bitcoin Jesus.” Since siding with the faction that advocated for the Bitcoin Cash fork in 2017, Ver has maintained that Bitcoin Cash is the “real Bitcoin” and his influence in the crypto community has waned.

W

Wallet: A software program or hardware device that receives and stores cryptocurrency. Moving or spending the stored crypto requires the user have their private key. See hot wallet, hardware wallet, paper wallet, cold storage.

Weak hands: Owners of crypto who panic sell on pullbacks.

Whales: People or institutions who hold and trade large amounts of cryptocurrency. It is widely assumed that whales manipulate crypto prices.

White paper: A document prepared by a developer team to describe the purpose, structure, and roadmap of a proposed cryptocurrency. Typically used to entice investors into a new project.

Winklevoss, Tyler & Cameron: Twins who became known for suing Mark Zuckerberg for stealing the idea for Facebook from them while all three attended Harvard University. The “Winklevii” invested part of their $65 million settlement into Bitcoin, and have since founded a crypto-related enterprise, the Gemini Exchange. Their Bitcoin holdings are believed to exceed $1 billion.

Wright, Dr. Craig S.: An Australian-born computer scientist who claims to be Bitcoin’s creator, Satoshi Nakamoto. However, Wright has failed to prove that he has control of any Bitcoin that Nakamoto is known to have mined. Wright remains a controversial figure who also helped drive the creation of the Bitcoin “Satoshi’s Vision” (BSV) hard fork, which he maintains is the “real Bitcoin.”

X

XRP: See Ripple.

Y

Yield farming: A way to earn more crypto on your existing crypto by lending it to a DeFi operation like Uniswap. In return for supplying liquidity, yield farmers earn fees and usually rewards in the form of crypto tokens. Yield farmers will move their money frequently as they search out the highest returns. Also known as liquidity mining.

Posted on

The Bitcoin Whitepaper

Abstract. A purely peer-to-peer version of electronic cash would allow online
payments to be sent directly from one party to another without going through a
financial institution. Digital signatures provide part of the solution, but the main
benefits are lost if a trusted third party is still required to prevent double-spending.
We propose a solution to the double-spending problem using a peer-to-peer network.
The network timestamps transactions by hashing them into an ongoing chain of
hash-based proof-of-work, forming a record that cannot be changed without redoing
the proof-of-work. The longest chain not only serves as proof of the sequence of
events witnessed, but proof that it came from the largest pool of CPU power. As
long as a majority of CPU power is controlled by nodes that are not cooperating to
attack the network, they’ll generate the longest chain and outpace attackers. The
network itself requires minimal structure. Messages are broadcast on a best effort
basis, and nodes can leave and rejoin the network at will, accepting the longest
proof-of-work chain as proof of what happened while they were gone.

Please follow this link for the complete whitepaper.

Posted on

The Ethereum Whitepaper

When Satoshi Nakamoto first set the Bitcoin blockchain into motion in January 2009, he was simultaneously introducing two radical and untested concepts. The first is the “bitcoin”, a decentralized peer-to-peer online currency that maintains a value without any backing, intrinsic value or central issuer. So far, the “bitcoin” as a currency unit has taken up the bulk of the public attention, both in terms of the political aspects of a currency without a central bank and its extreme upward and downward volatility in price.

However, there is also another, equally important, part to Satoshi’s grand experiment: the concept of a proof of work-based blockchain to allow for public agreement on the order of transactions. Bitcoin as an application can be described as a first-to-file system: if one entity has 50 BTC, and simultaneously sends the same 50 BTC to A and to B, only the transaction that gets confirmed first will process. There is no intrinsic way of determining
from two transactions which came earlier, and for decades this stymied the development of decentralized digital currency. Satoshi’s blockchain was the first credible decentralized solution. And now, attention is rapidly starting to shift toward this second part of Bitcoin’s technology, and how the blockchain concept can be used for more than just money.

Please click on this link for the entire whitepaper.