Gary Vee on Why Blockchain Will Kill Middlemen

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.


Ternio and Advertising on Blockchain

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:

  • Fraud
  • Transparency
  • Payment lags
  • Scalability

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.

‘Blockchain’ vs ‘Cryptocurrency,’ According to Google Data

‘Blockchain’ is now more popular than ‘cryptocurrency,’ according to Google Trends data.

Following the massive hype cycle at the end of 2017, Google Trends suggests the term ‘blockchain’ is gradually becoming a more popular search criteria than ‘cryptocurrency.’

The first time ‘blockchain’ briefly overtook ‘cryptocurrency’ (after last year’s hype) was in July. And it has consistently attracted more searches than ‘cryptocurrency,’ since at least September.

See complete article.

What is Proof of Stake?

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)

For more info, visit the following links:

The History of Blockchain Explained

Binance Academy provides a brief introduction to the history of blockchain, beginning in 1991 when research scientists, Stuart Haber and W. Scott Stornetta, introduced a computational practical solution for time-stamping digital documents so they could not be back-dated or tampered with. The system used a cryptographically secure chain of blocks to store the time-stamped documents.

In 1992, Merkle Trees were incorporated into the design, making it more efficient by allowing several documents to be collected into one block.

Merkle Trees are a fundamental component of blockchains that underpin their functionality. They allow for efficient and secure verification of large data structures.

In 2004, Hal Finney introduced Reusable Proof of Work (RPoW).

For reference, and going back a little earlier in time, a proof-of-work (POW) system is an economic measure to deter denial of service attacks and other service abuses such as network spam, by requiring some work from the service requester, usually meaning processing time by a computer. The concept was invented by Cynthia Dwork and Moni Naor as presented in a 1993 journal article.

The term “Proof of Work” or POW was first coined and formalized in a 1999 paper by Markus Jakobsson and Ari Juels.

Returning to 2004, Hal Finney built on the proof-of-work idea, yielding a system that exploited reusable proof of work (“RPOW”) and solved the problem of potential double-spending of digital currencies, which was designed to allow other non-associated users to confirm its integrity and correctness in real time. This can be considered an early prototype in the history of cryptocurrencies.

The next milestone is noted in the much publicized introduction of the decentralized, peer-to-peer electronic cash system by the anonymous Satoshi Nakamoto, which the world knows as Bitcoin.

Bitcoin introduced the idea of independent “Miners” to track and verify the transactions in exchange for financial reward.

The first Bitcoin transaction went from Satoshi Nakamoto to Hal Finney on Jan 12, ,2009.

In 2013, Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine, stated that a scripting language was needed for building decentralized applications (Dapps). Since he was not able to gain a consensus in the Bitcoin community, he began development of a new blockchain called Ethereum, which featured a scripting functionality called Smart Contracts, which are Dapps deployed and executed on Ethereum.

Ether is the cryptocurrency used on Ethereum.

In brief, cryptocurrencies are based upon blockchain. However, certain blockchains offer much more functionality than solely supporting digital currencies.


Blue Whale: The Blockchain Version of Upwork

Blue Whale Foundation, headquartered in Singapore, describes itself as “The decentralized ecosystem for the self employed.”

The company aspires to “empower the world’s freelance community by creating the largest worker-centric decentralized ecosystem where independent workers can pursue their passions and get the value they deserve from the gig economy.”

Furthermore, they state their “Decentralised network disrupts existing centralised platforms which have monopolised public resources, exacerbated economic inequality and increased the wealth gap. Blue Whale’s W.O.R.K. system is a revolutionary, sustainable cycle that fuels Sharing Economy. Whether you are a self-employed or a owner of small business, your benefit and welfare will be covered. The transparency achieved through blockchain technology means your earnest contribution in the market will be returned to you through Blue Whale’s Reward Bank. Coupled with no commission and free tools mean you no longer have to count pennies for marketing and advertising budget for your services.”

CEO, Will Lee states, “Currently, Blue Whale is the only comprehensive solution that addresses the fundamental problems faced by the dissolution of traditional employment – and also with it the social protections and employee benefits.”

Furthermore, while discussing the current centralized entities, he states, “They’ve come to monopolize data-based services that facilitate matching demand to supply on a large scale.  Instead of a genuine sharing economy, the freelancers who work for these platforms face 1) high commission, 2) excessive advertising costs for SMBs and freelancers, 3) no employment for SMBS and freelancers.”


The Hype of Blockchain and Climate Change

Companies are being created to use the transparency of blockchain to solve problems. 

Good. 

It will be even better in the future when we have more actual successes to cite as working examples.

Climate change is not immune to the boasting of quick cures for complex problems.  Nori is one such entity. The company’s website describes themselves as “A blockchain-based marketplace for removing carbon dioxide from the atmosphere.”  They are “on a mission to reverse climate change. “

Perhaps bold ideas are needed now, more than ever, to address climate change.  But in fact, really what is behind their promise is primarily a platform that facilitates more transparent transactions.

This does not make their effort any less noble, but its hyperbole does add to the noise that surrounds blockchain and potentially devalues its actual merit in the eyes of those who are newly trying to understand and embrace it: especially among those who are sincerely seeking comprehensive solutions to climate matters.

Hopefully, Nori’s contributions will prove valuable.  Its claims may prove to be less so.

Also see NPR audio report.