What is an ICO?

Investopdedia defines an ICO as: An unregulated means by which funds are raised for a new cryptocurrency venture. An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.

Furthermore, a supporting article states:

Although there are successful ICO transactions on record and ICOs are poised to be disruptive innovative tools in the digital era, investors are cautioned to be wary as some ICO or crowdsale campaigns are actually fraudulent. Because these fund-raising operatives are not regulated by financial authorities such as the Securities Exchange Commission (SEC), funds that are lost due to fraudulent initiatives may never be recovered.

The rapid ICO surge in 2017 incurred regulations from a series of governmental and nongovernmental In early September, 2017, the People’s Bank of China officially banned ICOs, citing it as disruptive to economic and financial stability. The central bank said tokens cannot be used as currency on the market and banks cannot offer services relating to ICOs. As a result, both Bitcoin and Ethereum tumbled, and it was viewed as a sign that regulations of cryptocurrencies are coming. The ban also penalizes offerings already completed. In early 2018, Facebook, Twitter, and Google all banned ICO advertisements.

What is Cryptocurrency?

Cryptocurrency is derived from two words. Crypto is from Greek and means “hidden” or “secret.” Currency is from Middle English and means, “in circulation.” The crypto part refers to cryptography, which in this application means keeping the money private  and secure and for verification purposes.

So, on an elemental level, cryptocurrency means secure or private money. But there’s more to know. Continue reading “What is Cryptocurrency?”

The Case Against Blockchain | Blockchain Decision Tree

In brief, at this stage of the game, blockchain isn’t for everyone. As highlighted in this blockchain article, one key takeaway is that “ICO companies that invest in blockchain have a 98% failure rate.”

This is not intended to cast shade on its potential, but blockchain merits should be weighed carefully relative to your business interests. Smaller companies, in particular, are at risk. The cost of developing blockchain technology is high and the current performance levels, including the volume of transactions that can be processed per second, is low.

Following is a Blockchain Decision Tree for a more considered appreciation as well as options to consider a public, hybrid or private blockchain.

What is a Cryptocurrency Wallet?

A cryptocurrency wallet is a digital software program used to receive, store and send digital currency, such as digital coins or tokens, for buying and selling or other monetary transfers. There are different types of wallets, with a hardware variant deemed the most secure. A wallet does not actually contain the currency itself, but contains security codes call “keys” which reference the money on a blockchain. In other words, wallet “storage” is really a way to prove ownership.

For more info, visit Cryptocurrency Wallet Guide: A Step-By-Step Tutorial

Civil: A New Journalism Paradigm on Blockchain

Civil

Civil.co describes itself as “The Decentralized Marketplace for Sustainable Journalism.”

Its mission is “to help power sustainable journalism throughout the world.”

“We believe in a new approach that takes advertisers and other third-party interests out of the equation, enabling journalists and readers to connect directly and focus on telling impactful stories.”

Continue reading “Civil: A New Journalism Paradigm on Blockchain”

Cryptocurrency Security Issues

Having spent years in the software and data industry, I’m aware of how imperfect software is.  Heck, any casual user of software has likely had that realization.

Hence, it’s not much of a stretch to state that I don’t think we’ve seen the end of security vulnerabilities in cryptocurrencies.  And as highlighted in this article, Bitcoin Dev Finds Potentially Crippling Security Flaw In Bitcoin Cash, some issues are still being discovered in mid-2018 that are remarkably serious. Continue reading “Cryptocurrency Security Issues”

Everipedia: A Wikipedia on Blockchain

Everipedia conceives that it is building a better Wikipedia on blockchain. There is no shortage of complaints about Wikipedia and any attempt at a better one should be encouraged.

But the premise of Everipedia introduces its own problems. I have no issue with the concept of paying people to contribute to Everipedia, but I believe the core idea that the best content will rise to the top is flawed. At least if you’re concerned about veracity. Continue reading “Everipedia: A Wikipedia on Blockchain”