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How block-chain works

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Best known as the immutable database that runs underneath cryptocurrencies like Bitcoin and Ethereum, blockchain is poised to play a critical role in every industry imaginable as businesses seek ways to cash in on the distributed ledger technology’s promise of enabling a “trustless” consensus to validate transactions.

Earnings in the past year

Smart miners need to keep electricity costs to under $0.11 per kilowatt-hour; mining with 4 GPU video cards can net you around $8.00 to $10.00 per day (depending upon the cryptocurrency you choose), or around $250-$300 per month.

Chart shows our earnings in the past year.

Financial transactions are typically guaranteed by a trusted third party (such as PayPal) and blockchain can be used to automate that process, reducing overall costs by cutting out the middleman with autonomous smart contracts acting as trusted intermediaries between parties on the network.

An essential feature of blockchain is its ability to encrypt each “block” of data for a unique hash output that is also stamped onto the succeeding block, creating a chain of sequential information which is then verified through a consensus of activity across a network of participants. This works in conjunction with digital signatures to prove identity, authenticity and enforce data access rights.

Sharing those encrypted “spreadsheets” to every node or validator on the network creates a distributed system where each device can access the transaction data and make additions to the distributed ledger, which is then shared with everyone in real time (akin to Google Docs), acting as a form of data security/redundancy.

The process of encrypting blocks is best recognized as “mining” in cryptocurrency, which uses blockchain as a proof of work mechanism whereby people can participate in the network by performing “work” (your spare computing resources are used to encrypt and validate blocks).

Should a machine on the network attempt to alter an old block, the new data would result in a different hash for that block, breaking the chain of successively shared encryption outputs. The rest of the network participants would recognize this and reject the corrupt node.

Blockchain’s encryption, consensus mechanisms and auditable databases have many outfits considering its viability for storing personal data (legal, health, financial and property records), while others are looking at uses ranging from autonomous smart contracts to uploading mind files.

Who’s Interested in Blockchain?

Harvard Business Review sees a startlingly successful future for blockchain beyond cryptocurrencies, imagining a world in which “contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision.”

“…every agreement, every process, every task, and every payment would have a digital record and signature that could be identified, validated, stored, and shared. Intermediaries like lawyers, brokers, and bankers might no longer be necessary. Individuals, organizations, machines, and algorithms would freely transact and interact with one another with little friction.”

Text in the US government’s NDAA 2018 Modernizing Government Technology Act suggests the use of blockchain and smart contracts as part of a broad cost-savings upgrade/migration strategy aimed at replacing the aging, inefficient infrastructure for human records keeping.

As part of a continuing government assessment of the cybersecurity risks associated with blockchain, the NDAA 2018 requires that the Pentagon monitor government agency rollouts of the technology to survey the infrastructure’s security and then brief Congress within 180 days.

Amid the growing adoption of blockchain, DARPA is also funding efforts to determine if the encrypted and distributed nature of blockchains could help secure highly sensitive data pertaining to everything from nuclear weapons to military satellites.

Likewise, the medical industry is looking to surf the coming wave of blockchains, seeing a purpose for the technology in storing and sharing patient/doctor data throughout healthcare ecosystems. This could include bio-data feeds from wearable IoT sensors and smart apps for instance, and blockchains could even be used to house DNA sequences.

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Conclusion

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Bitcoin

Big traps of investing in cryptocurrency

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There’s a lot of hype with Cryptos. Why? Because most do not know what they’re investing in and would rather listen to the crowd. What happens then? Prices crash once you’ve bought into it. Taking a loan or using all your life savings can be hugely risky, especially if you do not have the prerequisite knowledge on the tech and the coins. Be informed. Ask the right people. Arm yourself with knowledge before jumping on the hype-wagon. This would significantly reduce your risk and most importantly, position you to invest in the long-term fundamentals of the technology.

There are plenty of opportunities to make lots of money in the crypto market, and you should be patient and wise to acquire the right knowledge before investing. Don’t be the person that invests based on the current hype. Do your research first. If it’s too complex, look for answers. The cryptocurrency community is filled with awesome individuals that can simplify things and help you along the way.

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Bitcoin

Single Post with Revolution Slider

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UUntil relatively recently, building blockchain applications has required a complex background in coding, cryptography, mathematics as well as significant resources. But times have changed. Previously unimagined applications, from electronic voting & digitally recorded property assets to regulatory compliance & trading are now actively being developed and deployed faster than ever before. By providing developers with the tools to build decentralized applications, Ethereum is making all of this possible.

What is Ethereum for beginners?

At its simplest, Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications. Like Bitcoin, Ethereum is a distributed public blockchain network. Although there are some significant technical differences between the two, the most important distinction to note is that Bitcoin and Ethereum differ substantially in purpose and capability. Bitcoin offers one particular application of blockchain technology, a peer to peer electronic cash system that enables online Bitcoin payments. While the Bitcoin blockchain is used to track ownership of digital currency (bitcoins), the Ethereum blockchain focuses on running the programming code of any decentralized application.

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Bitcoin

Bitcoin and its traps

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If you’re a novice when it comes to cryptocurrency trading, there’s a lot you need to learn if you want to be successful. If you’re new to the financial markets completely, you definitely need to learn the ropes – just to make sure you don’t make any otherwise avoidable mistakes.

What Is A Bear Trap

Today, we’re going to talk about a common occurrence in the Bitcoin markets – the bear trap.

Bulls & Bears Markets

Just like any financial market, the Bitcoin market undergoes ups and downs. In fact, Bitcoin (and other cryptocurrencies) can be even more volatile than, say, the stock markets. The trick is reading these upwards and downwards movements and see them for what they are.

You’ve probably heard of the idea of “bull” markets and “bear” markets. The terms indicate market conditions that are either aggressive when it comes to increased value – bullish – or predictive of falling value – bearish.
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