Blockchain, the key technology behind Bitcoin, is a new network that helps decentralize trade, and allows for more peer-to-peer transactions. WIRED challenged political scientist and blockchain researcher Bettina Warburg to explain blockchain technology to 5 different people; a child, a teen, a college student, a grad student, and an expert.
John McAfee from McAfee Crypto Team & Luxcore, Brandon Smietana from Skycoin and Monty Munford (moderator) from Mob76 discuss “The Dark Side of the Chain” at the 2018 Malta Blockchain Summit.
At times distressing and other times colorful, their discussion includes kidnapping, murder, guns and prostitutes.
Additionally, Smietana talks about the origin of Bitcoin as a money system backed my mathematics instead of humans, who are prone to corruption. He describes the current fiat monetary system as a debt ponzi scheme and that the earliest Bitcoin proponents were Libertarian, real-money advocates before the speculators came in and dominated the landscape.
McAfee discusses forwarding the adoption of crypto by actually using crypto for purchases where accepted.
Matthew Beedham describes a permissionless blockchain as one where the public validates transaction information on the network.
In permissioned systems, transaction information is validated by a select group approved by the blockchain’s owner, hence a private blockchain.
Permissioned systems tend to be more scalable and faster, but are more centralized. Permissionless systems are open for all to join, and as a result, usually more decentralized, the trade off is speed and scalability.
In this interview, Gary Vaynerchuk discusses his personal evolution and emphasizes two fundamental points for business success:
Be passionate about the customer
Have an outrageous work ethic
The future of the internet is voice search, including Amazon Alexa and Google Home.
Use all social media platforms the people you want to reach are using.
Regarding getting your message out to the world: physical activities, such as the conference they are attending, are secondary to the internet and social media.
In terms of media platforms, he advocates creating no friction in the way people want to consume information. Whether writing books, recording podcasts or creating videos, help the end user get info the way they prefer to consume it.
Building a brand is vital in our world of commoditization of products and services.
Blockchain will eliminate the margins in financial services and other businesses.
When you make money as a middleman and the internet and blockchain come along to replace the middle, you’re in trouble.
Mike Maloney draws eerie parallels to the misguided leaders and monetary policies that doomed civilizations from Ancient Rome to modern-day America.
In particular, the parallel between the debasement of fiat currency and its relationship to gold in Ancient Rome vs. the United States is compelling, as well as a note about the opportunity of cryptocurrency in this landscape.
The above video is Daniel Gouldman’s (CEO Ternio) presentation at The Blockchain Revolution in Advertising, on Sept 28, 2018, in NYC.
Ternio describes itself as “the only scalable and decentralized blockchain framework capable of over 1 million transactions per second.”
The intent of Ternio’s blockchain is to enable brands, ad agencies, and ad tech providers to gain transparency of the ad supply chain, fight ad fraud, and facilitate real time payments.
Gouldman outlines 4 primary ad industry issues that need solving:
He notes that currently digital advertising is mediated by centralized companies, such as Facebook and Google, which are prone to errors and opacity.
Blockchain eliminates the need for intermediaries, since the data is distributed to many participants, who all see and can verify the same data.
Currently, the primary blockchains in existence cannot scale enough to handle the volume of ad transactions. The problem is currently being addressed. An example is Ternio’s own blockchain, Lexicon, which is theoretically unlimited in processing transactions.
In some blockchain ecosystems, participants are forced to use centralized services as part of their data and transaction layers, due to the current limitations of transactions per second.
However, on a true blockchain all the different participants have their own place in the blockchain network by way of their own servers, which makes them a transparent part of the advertising ecosystem.
A basic concept is integrating other data layers on top of blockchain. For example, entities such as advertisers, agencies, publishers, the demand-side platform (DSP) and supply-side platform (SSP), are all part of the digital advertising ecosystem and each would be paid immediately for their work, once confirmed and validated in real time by the blockchain.
In the current, centralized, ecosystem it’s hard to identify exactly where fraud enters and exits. Due to the transparency of blockchain, fraud is mitigated.
Proof of Stake solves problems inherent with Proof of Work, which include:
High energy use
Opportunities for centralization
Potential security issues
Proof of Stake requires much less computational power than Proof of Work; it’s designed to be more decentralized than PoW; and it’s designed to be more inherently secure in the future than PofW.
Both PoW and PofS are a process to reach network consensus, which validates transactions. The way they achieve that goal is different.
PoS algorithms achieve consensus by requiring users to stake an amount of their tokens so as to have a chance of being selected to validate blocks of transactions, and get rewarded for doing so.
In terms of compensation to network validators, PoW provides mining rewards, whereas PoS provides transaction fees as rewards.
Security is also improved over PoW since PoS validators have a natural incentive to not validate fraudulent transactions.
Additionally, PoS allows a greater number of validators, which makes the network more decentralized and more stable.
Note that not all PoS algorithms work the same way. The PoS consensus protocol is a robust system. But that hasn’t stopped developers and entrepreneurs from seeking improvements, such as the Delegated Proof of Stake (DPoS)