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BLOCKCHAIN for the non-technical

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What is Blockchain? What can(not) it solve? Industry by industry Impact of Blockchain

If the barrier to entry is the big issue for cryptocurrencies then education (or lack thereof) is the big issue for Blockchain Technology.
Highlight and Share any textToday we join those that are working toward demystifying the Blockchain Technology for non-technical folks. This whole segment will continue to be updated with all the different topics listed below (and more added as we go along).

In this segment we will learn:

Interview logoWant us to interview your favorite CEO/Executive? Tell us who and why in comments.

In EACH of these industry-specific Blockchain segments, we will explore: 

  • Blockchain use cases in that particular Industry
  • Hurdles to overcome for blockchain adoption in the Industry
  • Companies that are already using Blockchain in the Industry
  • Interview with an industry expert in the space

The next frontier in the Blockchain Evolution: 

Security Token Offerings
Tokenizing: Making illiquid assets liquid

Subscribe buttonSubscribe so you don’t miss the industry expert insights. Do not worry, we never send more than 1 email per week (not even that). 

What is Blockchain Technology?

We explained in detail what Blockchain is in a previous article. For sake of continuity, let’s define what Blockchain Technology in this article, using a simple example.

In the good old days, we used to keep all records in a handwritten ledger book. It was very difficult to tamper the entries in the book without a trace. However, because this book was maintained by one or a few people – you can never be 100% sure about the integrity of the entries made.

Let’s say, every time a new entry is made in this ledger book, we made 100 copies and these 100 copies were held by 100 different people spread out geographically.  When someone tries to tamper a previous entry, a copy of the updated ledger book is sent to these 100 validators and they can immediately see that there is a change in a previous entry that does not reconcile with their copy.

Because the consensus between these 100 validators cannot be obtained, the change made in the ledger book is negated.

This system ensures that once an entry is made, it is never changed.  If there is a change that needs to be made to the original entry, you simply make a new entry at a later date referencing the original entry. In which case, all the 100 validators will agree with it because it did not alter previous entries in their copies.

How can you make sure that some random person is not making these changes to the original ledger book? Well, that’s where the handwriting comes into play. These 100 validators not only check for the integrity of historical data against their copies, but they also check whether the handwriting matches. What is Blockchain
To translate the above simple example into Blockchain Technology terms:

Think of Ledger book as a database, entries made as transactions, copies as the copy of the database maintained by everyone connected to the database, handwriting as cryptography, the validators in our example as the nodes (computers connected to the network) and the process of reconciling/agreeing on changes as consensus.

Blockchain then is a decentralized database that is connected by multiple nodes, each node maintains a copy of the entire database, every time a new transaction is entered into the database by anyone connected to the database, it is checked against the copies on all the nodes connected to the network. If the database copy matches with the copy maintained by the entire network and the cryptographical signature are accurate – then the consensus is obtained with all the nodes. Once consensus is obtained – all the nodes update their copies of the database, thus a new entry is entered.

Simple, right?

As you can see, none of the old entries can ever be tampered with, leaving blocks of information that remain immutable.  These blocks are linked with each other by a cryptographic signature.  You tamper one entry, and the cryptographical signature of all other blocks is altered, and when that happens the tampered entry is rejected and the whole database goes back to its original state.

Because the blocks are chained together with cryptographical signature, the term BlockChain came into being.

The technology that enables this consensus mechanism using cryptographical validation is Blockchain Technology.

A bit of jargon before we move on:

  • Hash: Hash is the alphanumeric (mostly 32 characters) string that acts as the cryptographic signature
  • Mining: The act of participating in the blockchain network to process and confirm the transactions, most blockchain networks need special equipment with high-end computing speeds

What is Proof of Work?

In our example, we said that all the 100 nodes (computers) that are connected to the database validate any changes made to the database by comparing their own databases and matching the cryptographical signature. This means these nodes are doing the work of validating.  Whichever node confirms that the transaction is either valid or invalid after the consensus is obtained from the network, is said to have done the work.

A node that validates the transaction gets a small-fees from the network, as a proof of work performed.

There are other forms of consensus mechanisms, such as, proof of stake, which gives rights based on the ownership of the network instead of a number of nodes.

What is a 51% attack?

In our example, we had 100 validators.  Every time a transaction takes place, to wait for all 100 validators to confirm the transaction takes too long. In the real world, there could be thousands of nodes. For instance, the Bitcoin core has over 10,000 nodes running at the time of this writing. To avoid delays, a democratic approach is embedded in the consensus methodology.

That means, if 51% of the nodes confirm a transaction, that transaction is committed to the network and the databases of the other 49% will be updated with the changes committed to the network.

This is where things get interesting.

There are many blockchain technology solutions available. Some of them are public blockchains and others are private blockchains, there are others that are in between.  We will look at how they differ in a bit, but for now, a public blockchain is accessible by anyone with the right equipment and internet.

Let’s say, on a particular public blockchain technology of your choosing there are a total of 10 nodes. Someone with a malicious intent connects 15 of their own new nodes to this public blockchain.  What this means is that this individual or group can manipulate the entire blockchain since they control more than 51% of the nodes.

This is one of the reasons why companies are choosing private blockchain where every node is handpicked.

There is an argument that private blockchains do not fully realize the true potential of what Blockchain technology can offer.

What is a Public Blockchain?

A Public Blockchain is a blockchain network that anyone with a computer and internet can access.  For instance, you can go to Bitcoin.com or Ethereum.com and join their network, and if you have the right type of equipment, you can even start contributing the hash power to the network.

For instance, you can go to Ethereum.com or Bitcoin.com and start participating in the blockchain network and get paid out fractions in their native currency.

But Public Blockchain’s utility doesn’t end in earning fractions, it spans a much broader landscape.

Many Decentralized Applications (DApps) are built on these open Public Blockchain networks.  When they launch their DApps on these public blockchains, they automatically inherit the massive security of the Blockchain that they are operating on.

This means an individual or a small entity can leverage the massive network strength without shelling their pockets out.

One day, we may find a broader use case for Public blockchains in healthcare, Government operations, money transfer, loyalty programs, etc.

What is a Private Blockchain?

Most companies realize the potential of Blockchain technology, they just don’t like the idea of putting their information out there.

This translated into creating blockchains that access restrictive. This means companies can utilize all the great features of Blockchain while keeping their information safe.

They can also specify who gets participate in their network since most of the participation is based on ‘invite only’.

Private Blockchains, although great, they really do not realize the true potential of blockchain because they lack the strength and transparency of a bigger blockchain. Alex Mashinsky  in our interview mentioned that “those that are working on Private Blockchains are wasting their time.”

In the technology world parlance, Public Blockchain is like the Internet, anyone with the right device and connection can join in. Private Blockchain is akin to the intranet, only those that are connected to the server can join in.

What is a Hybrid Blockchain?

A Hybrid Blockchain is where some parts are accessible by everyone and some parts are restricted for the public. For example, the public may have access to ‘view’ but not edit.  Only a few authorized individuals may have ‘edit/write’ access.

This is a good model for bringing Government related services on to blockchain where you want everyone to be able to ‘view’ Government activities without having access to edit the information.

For instance, identity management could be a good government service that can benefit from Hybrid Blockchain model, everyone with your specific address (or Bar code) can verify your identity but they will not be able to change it.

How does blockchain promote decentralization?

It is important to note that only Public Blockchain protocols are decentralized. Private blockchains are not decentralized.

Public Blockchain achieves decentralization by being accessible to anyone with the required equipment. People with requisite technical skills can see the information committed to most applications launched on these public blockchains.

The idea of accessing the strength of a massive network to launch your own Applications without having to pay the toll for doing so creates an environment where people want to build things that help the public at large.  If in return – creators of these applications are rewarded, well, that is commendable.

The feature of immutability instill trust in people that transact on the public blockchain, this trust leads to skipping the intermediaries (like banks or agencies) that used to play the ‘trust’ role earlier.  Because Blockchain is accessible globally, theoretically, it opens doors to transact with anyone from anywhere.

Trust, circumventing intermediaries, being accessible globally and lack of barriers to entry all help Blockchain promote decentralized commerce.

What are the benefits and shortfalls of Public and Private blockchains?

Public Blockchains are readily accessible, easy to launch your DApps on.  They are also relatively resilient to 51% attack since it takes a lot more computing power to break down some of the big networks.  Public Blockchains truly reflect the spirit of Blockchain.

When you participate in a more popular Public Blockchain, you are competing for processing power, this means, you may have long wait times.  Many businesses cannot afford this kind of wait time. You have to pay a premium to cut the line, this can easily eat into the company’s revenue.

Lack of privacy is another drawback of Public Blockchains.

Private Blockchains are restrictive and are not for broad use.  Since the resources are managed privately – there is not a long wait time to process the transactions like we have in Public Blockchain.  Safety of information can be ensured since you grant access to only trusted parties.

Private Blockchains may help companies but they do not instill the ‘trust’ factor which is the cornerstone of Blockchain revolution.  Collusion is a possibility in Private Blockchain.

What is Cryptocurrency?

what is CryptocurrencyMost people know Bitcoin as the king of cryptocurrencies, but what they may not realize is that Bitcoin also represents the Blockchain.

In its own right, Bitcoin is the first publicly accessed Blockchain with its own fuel/currency to run the network, the Bitcoin cryptocurrency.

What then is a cryptocurrency?

As we learned before, for Blockchain to work, we need computing power. Computing power comes at a cost.  Each Public Blockchain has its own fuel to reward the computing power contributed. This reward that represents a fraction of the value contributed to the Blockchain platform. That reward itself is the Cryptocurrency.  This process of providing computing power (hash) to solve a cryptographic puzzle of sorts is called mining.


In true sense, cryptocurrency is a real earned money! Although it is earned by the computers instead of by physical human labor.

Cryptocurrency is then a byproduct of Blockchain. Blockchain can survive without cryptocurrency but all forms of cryptocurrencies need some Blockchain basis to it.

What makes Bitcoin a store of value is the limit on its total supply. In the end, only 21 million Bitcoins can ever exist. Of these, almost 4 million are lost due to access, hardware issues, ignorance or any number of other reasons.

Not all Cryptocurrencies are mined, though.

Some blockchains pre-mine, that is, issue their platform currency and sell them for fiat currency for operational needs. When someone wants to use the services on their platform – they are then required to pay for such services in the pre-mined currency. This type of currency is known as utility tokens.

Utility tokens because their value is dependent on their usability on the platform. If the platform does not succeed – their value may become zero.

SEC has been warning companies that sell the pre-mined utility tokens that such utility tokens will be regarded as ‘securities’ and not complying with securities laws while issuing utility tokens will have consequences.

How are Blockchain and Cryptocurrency different?

Blockchain and CryptocurrencyCryptocurrency is a byproduct that acts as the fuel to encourage people to provide their processing power.

Blockchain technology can run without cryptocurrency, however, Public Blockchains usually rely on the reward (cryptocurrency) to allure people to commit their computing powers to the network.

Why are companies interested in Blockchain but not Cryptocurrency?

Business adoptionAs discussed earlier, cryptocurrency is a fuel that encourages people to commit their computing power to run the network.

However, since most enterprises do not want to share their information – they favor Private Blockchains.  Private Blockchains do not need Cryptocurrency.

Because of the negative press around Cryptocurrencies and securities boards, action against companies that issued cryptocurrencies (in the name of utility tokens) – companies of repute are trying to steer clear of the tag ‘cryptocurrency’ with their brands.

What does Blockchain solve?

Advantages of BlockchainBlockchain revolution started on the basis of many promises, however, its core promise comes from the technology’s ability to instill trust through immutability.

As we learned earlier, you cannot tamper with the entries once committed to the Blockchain, you always leave a trail that is there for anyone to see.  This instills a new level of confidence in the data that was not available in the traditional databases.

This deceivingly simple ability of immutability can one day help solve the issues of counterfeit, helps conduct intermediary less commerce, cover-ups, etc.

What Blockchain cannot solve?

Blockchain cannot stop bad players from taking advantage of people. Since anyone can access the network, not everyone that is accessing the network comes there with good intentions. There have been many ideas that were ‘proposed’ to be built on blockchain only to empty people of their hard-earned money.

Even with Blockchain, you need to know who is behind a particular project or initiative. If they are trustworthy people then they will build things that utilize the immutability and trust factor of Blockchain.

“Customer beware” applies to blockchain space as well.

The blockchain is NOT foolproof, literally. Human errors do cause mayhem in Blockchain.  Blockchain cannot save itself from 51% attack (people have to) that we talked about earlier.

Blockchain space is also prone to a lot of FOMO and FUD, that is short for Fear Of Missing Out and Fear Uncertainty and Doubt. The only antidote to these vices is education and knowledge.


What is a smart-contract?

Just like Blockchain, the term smart contract is not a new one. Nick Szabo used the term smart contract in his thesis dated 1996 titled “Smart Contracts: Building Blocks for Digital Markets.”

what is smart contractNick explains “New institutions, and new ways to formalize the relationships that make up these institutions, are now made possible by the digital revolution. I call these new contracts “smart” because they are far more functional than their inanimate paper-based ancestors. No use of artificial intelligence is implied. A smart contract is a set of promises, specified in the digital form, including protocols within which the parties perform on these promises.”

To break it down, a contract that can be executed by the system automatically upon fulfilling a set of agreed-upon conditions can be termed as a smart contract.

Nick’s vision to create instant, cheap and efficient smart contracts was just a theory in 1996, however, with the advent of Bitcoin Blockchain, that vision has taken shape.

Contracts executed by the systems on a Blockchain are forever immutable – which advances the trust aspect.

What is Initial Coin Offering (ICO)?

“A healthy dose of skepticism is always good. This bear market is forcing investors to demand more than just a colorful whitepaper,” said Dr. Jemma Green of Power Ledger during our interview.

Unfortunately, that wisdom was too late to arrive for many investors (including us) who invested in Initial Coin Offerings (ICOs) and lost a ton of money, including life savings.  Billions of dollars were raised using ICOs.

ICO model has indeed the paved way to raise capital for great ideas to change the world but no capital.


An ICO is where a company pitches the idea to the general public. If the public believes in the idea, they can contribute whatever is the minimum contribution, usually, the minimum contribution is very low to enable small investors to be able to join in. ICOs are different from crowdfunding on many fronts but one defining difference is that most ICOs are primarily used in the Blockchain space and accept cryptocurrencies as an investment.

ICOs opened up an avenue for raising capital for people and companies that may otherwise never been able to raise the capital.

Another beauty of an ICO is – people from all over the world can contribute capital into ideas they like.  There are few countries that specifically prohibit companies from accepting investments from their Citizens (for example, the United States, China, Singapore, etc.).

Although the idea of ICO has caught bad press in the recent year due to many bad players that scammed people out of their hard-earned money, the concept itself is quite an amazing one. The concept of ICOs will eventually help change the face of traditional capital markets through Security Token Offerings.

Security Tokens are similar to utility tokens issued in an ICO, however, security tokens follow the securities laws of the land instead of circumventing.

Because they are supposedly legal, big businesses can enter into them once the complete framework is made available by the respective authorities.

We use the word ‘supposedly’ since the legal framework within which Security Token Offerings can be issued is not readily available.  Most companies are working within the confines of exceptions and exemptions available in the securities law but a separate Security Token guidance or framework is yet to see the light of the day.

Industry by Industry impact on Blockchain

  • Blockchain and Law (upcoming)
  • Blockchain and Healthcare (upcoming)
  • Blockchain and Real Estate (upcoming)
  • Blockchain and Insurance (upcoming)
  • Blockchain and Supply Chain (upcoming)
  • Blockchain and Financial Services (upcoming)
  • Blockchain and Energy (upcoming)
  • Blockchain and Charity (upcoming)
  • Blockchain and Government services (upcoming)
  • Blockchain and Gaming and Gambling
  • Blockchain and Your Data Rights (upcoming)

Do you have a favorite CEO in Blockchain space who you would like us to interview? Tell us who and why in comments.

Thank you for reading the article.
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About the author

RK Reddy holds two Masters degrees, one in Accounting and another in Business Administration with over 15 years of experience in the financial services industry.

RK Reddy is an ardent fan of Blockchain and Cryptocurrencies. You can see the excitement about this new blockchain technology in every article on Cryptotapas.com. Sometimes this excitement leads to an overly optimistic view. Guilty as charged. RK Reddy says what may seem like an ‘overly optimistic expectation’ today may become an everyday norm in 5-10 years; look at the history of cars or airplanes, Blockchain and Cryptocurrencies belong to a similar frame of reference.”  Of course, that is just his opinion.


CryptoSpace

Is Elrond better than Ethereum? Should I invest?

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Elrond Token review

Elrond(ERD) Token Review

Would the modern magic of internet work if we were still using dial ups? If you are from the generation that doesn’t know what a dial up means, it looks like this:

AOL Dial Up Internet Connection Sound + You’ve Got Mail (America Online) 90’s

Take a walk down memory lane and listen to the AOL (America Online) Dial-up internet connection sound and the famous You’ve Got Mail. Subscribe to Adventures…

Essentially, it would take you 30 seconds to 3 minutes to connect to the internet and open a text email.

If you were to load the YouTube website at the 56kbps speeds (considered good in those early internet days), it would take you probably 20 minutes.

We tried to load YouTube at 56 kbps speeds and after 7 minutes we were still waiting for the page to load. Compare that to the broadband that loads YouTube in a split second.

You can test what it feels to browse at 56kbps here.

While it is quite an extreme and dramatic example, I think that is the closest you can come when you try to explain what Elrond is in comparison to Ethereum.

At its current state, Ethereum processes 15 transactions. Compare that to Elrond which processed 35000 transactions during the test net run.

Obviously, the test environment is different compared to the real world.

Ethereum 2.0 could solve some of Ethereum 1.0’s flaws with claims of 100,000 to Million TPS. That is something we have to wait and see.

OK, what is Elrond?

There have been at least 100 Ethereum killers on the market since the birth of Ethereum.  Ethereum (Classic) couldn’t kill Ethereum, so we are not sure others will.

What is Elrond

Ethereum currently has serious scalability and TPS issues. Listen to this clip where Vitalik admits that Ethereum 1.0 cannot scale.

No Title

ICO prospectus: “Build scalable apps on Ethereum.” Mod: “Youre saying the concept of launching something that doesn’t scale then rebuilding it as something thats scalable was part of initial the plan.”Lubin: “We knew it wasn’t going to be scalable for sure.”Vitalik: *nods* pic.twitter.com/MBSFkQeugj

Ethereum 2.0 could be a whole another story.  However, it is not a reality at the time of this writing.

Elrond on the other hand already delivers on what Ethereum 2.0 is ‘aiming’ to.

In a somewhat hyped elevator pitch, Beniamin Mincu, CEO of Elrond, said that Elrond is a 1000x improvement over other protocols in the blockchain space.

In a nutshell, Elrond offers a high throughput blockchain ecosystem that makes use of sharding that ‘scales’ (adapts) with the demand put on the network.

This adaptive sharding helps Elrond to be efficient, secure, scalable and provide a high rate of TPS.

This is why Elrond boasts itself as A highly scalable, fast, and secure blockchain platform built for internet scale.”

ERD Scaling

What makes Elrond Special?

The strength of Elrond, in our opinion, is not in its novel or groundbreaking innovation.

It is in the simplicity of picking the ‘best’ of all the blockchain protocols that preceded and only solve the issues that these protocols failed to solve.

For instance, Elrond picks sharding from Zilliqa but makes it ‘adaptive’.  It picks interoperability from Cosmos and implements it at Virtual Machine level.   

Elrond says it as much in its whitepaper: “Elrond was designed upon and inspired by the ideas from Ethereum, Omniledger, Zilliqa, Algorand and ChainSpace.”

If we are to compare blockchain revolution to the internet, we have to assume that many companies will be replaced by newer solutions. 

Whether Elrond is that ‘next generation’ blockchain or if it will be eaten away by another project is something we have to wait and see.

For now, let’s focus on what Elrond promises that makes it special.

“1000x improvement” over its predecessors

“Elrond is a new blockchain architecture that can bring 1000x cumulative improvement in scalability, throughput, transaction speed and transaction cost,” that is how Beniamin Mincu, CEO of Elrond, explains the project.  

Scaling

Elrond promises to be able to ‘adapt’ to the scaling needs of the network.  The project uses what is called ‘adaptive sharding’.

For the technically inclined, here an excerpt from the whitepaper:

“Elrond proposes a dynamically adaptive sharding mechanism that enables shard computation and reorganizing based on necessity and the number of active network nodes. The reassignment of nodes in the shards at the beginning of each epoch is progressive and nondeterministic, inducing no temporary liveness penalties.”

Sharding is the process of breaking down a big problem into small ones to solve it faster.

Security

Elrond uses a modified version of Algorand’s Secured Proof of Stake concept.

Secure Proof of Stake randomizes the ‘selection of a node’ so that security is not compromised through 51% brute force.

Elrond goes one step further on this sPoS model where it introduces ‘stake and rating’ criteria to be even eligible to be randomly picked as a node.

Adaptive sharding is the ability to scale up or down the number of shards depending on the transaction at hand.

Obviously, that is a dumbed down English explanation of it, as we understood it.

This makes selection of nodes ‘random’ while taking meritocracy into consideration.

The rating is dynamic and is recalculated at the end of each execution.

ERD Token

Many investors in the crypto space don’t care what the project does if the tokenomics are weak.

  • Transaction fees

Elrond’s utility is acting as the ‘native’ token on the network to pay for the transactions. The more transactions that take place on the network the more Elrond will gain in demand.

  • Staking

Elrond offers crazy returns on staking. This means, there is a probability that many tokens will be locked out of circulation which could boast the price.

  • DApp Deployment

Like any other blockchain network, Elrond token acts as the ‘utility’ on the DApps deployed on the network.

  • Validator reward

Validators are rewarded for their work and Elrond token is used in disbursing these rewards.

Team

Crypto space is excited about the team that is involved in the Elrond project.

Just looking at the profiles of CEO, COO and CIO showcases that you are not dealing with a group of wannabes.

Elrond Team

The team brings in the right mix of technical prowess and business acumen.

Many blockchain projects either lack a strong technical forte or suck at running the business.  Elrond may not have that problem due its ‘experience mix’.

Partnerships and Integrations

This is one project that is making a lot of buzz in the past two months, with continuous updates and partnerships. Here are a few:

ERD and Indacoin

ERD and Indacoin

Indacoin is a fiat gateway with over 500K users which allows users to buy crypto with Visa or Mastercard using USD, GBP, EUR and many other currencies.

ERD and dfinance

elrond and dfinance

Elrond will work together with dfinance to enable users to build Elrond native assets as well as allow Elrond users to access DeFi platforms on dfinance.

ERD and LDV

Elrond and EDV

ERD tokens are now available on LDV, a Romanian crypto exchange and a fiat gateway. ERD/EURO and RON/ERD pairs will be available on the platform.

ERD and Crypto.com

elrond and crypto.com

Users of Crypto.com can now buy ERD token on their app. Crypto.com is considered one of the easiest modes of buying and selling crypto. With deposits and withdrawals of erd token enabled on crypto.com, the token is now available for over 3 million users of crypto.com

ERD and Utrust

Elrond integrated with one of the leading payment gateway for ecommerce, Utrust.

ERD and Swipe

Swipe partnership elrond

ERD is partnered and now available on swipe, a multi currency digital wallet. Swipe has over 500K users.

The other partnerships and integrations include Stateless Money, Staked, Moonpay, FinNexus, and many others.

Elrond is gaining traction fast and furious. Will it amass enough steam to surpass other blockchain protocols?  

We have to let the time answer that question.

ERD Token Metrics

ERD Token Metrics

Source: Elrond

*These token metrics are about to change after the EGLD swap.

Some pump and dump chat

You will notice that Elrond is showcased on the Samsung official video introducing Samsung Blockchain.

Samsung Blockchain wallet elrond

First and foremost thing everyone is excited about is its mainnet launch. 

We believe the rise in price is not just because of its mainnet launch, but also the high staking rewards that are expected to yield after the mainnet launch. 

With over 5 Billion ERD tokens already staked during the testnet, it is possible that more users will stake their tokens for passive income.

Risk factors

Late to the party, not to the town!

There are a lot of blockchain platforms in the blockchain space. Many promise sun and the moon with 100K to a million transactions per second.  

Most of these promises are just that as of now, promises.

Elrond is late to this TPS race, however, it could do what others have failed: Actually live up to its claims on the Main net.

In this sense, Elrond is late to the TPS party but it is not late to ‘make a mark’ for itself in the blockchain town.

More advanced projects in the space

What happens when Ethereum addresses its TPS issues, scalability aspects and makes it incredibly easy for people to launch DApps?

Ethereum already has a massive penetration in the space that it could leverage.

Beyond Ethereum, there are other projects like Zilliqa that could pose stiff competition to projects like Elrond.

And, do not forget Cardano, a project that is preparing its arsenal for a hostile takeover of the crypto space.

What is a head in Elrond’s Roadmap

Elrond Roadmap

Source: Elrond

Elrond Swap

ERD to eGLD

With the launch of Elrond Mainnet, Elrond token (ERD) will be swapped for Elrond Gold (EGLD), at a 1000:1 ratio. Simply put if you hold 10,000 ERD tokens, it will be swapped into 10 EGLD. In terms of price, if the current price of one ERD is $0.024, the price of 1 EGLD (*1000ERD) will be $24.
Elrond has garnered quite a lot of buzz before the mainnet, now it all comes to how the project is going to progress beyond mainnet.

How to swap ERD

As per their official Telegram channel, exchanges are making preparations to support Elrond swap to Elrond Gold.  The tokens will be swapped in about 30-60 days and the ERD(ERC20, BEP2) will be replace with eGLD. Check with your exchange and look out for communication about the swap support. Till then, ERD trading will run as it is over the exchanges.

Pros of Elrond Token Swap

The swap is expected to reduce the current total volume of 21 Billion ERD tokens to 20 million eGLD and to 30 million over the next ten years which in theory should make the coins dearer.  How this will work in reality is something we have to wait and see. Case in point but in reverse is VeChain, which was trading at $9 before the swap at the ratio of 1:100 and the price dropped so low that it has not yet recovered.

Cons of Elrond Token Swap

In our opinion, it is easy for a coin to jump from 1 cent to 2 cents and 2 cents to 4 cents, however, there is a psychological barrier from investors to let a coin trading at $20 to move to $60. However, if you see from a percentage, the underlying gains are the same. 1 cent to 4 cents is a 400% jump, however, it will take a lot for a $20 to jump to $80. If Elrond proves its value in the blockchain space then the project may pump in spite of the denomination.
Thank you for reading and sharing this article. Stay safe and healthy!

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

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CryptoSpace

V-ID is bringing real world use case to Blockchain, can it succeed?

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Vidt Token review

VIDT Review, use cases, future prediction

What follows is the byproduct of our research on whether or not V-ID is a good project.  

We have a tendency to FOMO, so read everything with a grain of salt and always DYOR.

What is V-ID?

Anything digital can be altered. How then can you be confident about the authenticity of the digital files you are dealing with?

“V-ID is a blockchain powered document certification service. The VIDT API enables organisations to certify and secure their digital data against fraud and manipulation.”

You can tag digital files using V-ID and anyone around the world can verify its authenticity by simply using V-IDs free checker.

If any information is changed within the file, V-ID flags it.

This technology has an immediate use case in the real world to fight digital frauds. Especially in dealing with:

  • Invoices
  • Scientific papers
  • Contracts
  • Official documents
  • Diplomas/certificates
  • Data from Internet of Things

Watch this quick video to learn about V-ID.

Introduction to VIDT V-ID Blockchain Powered Validation

The V-ID validation service uses blockchain technology to end all document fraud. Our client base, with customers like Airbus Space & Defence, operates in va…

Take a simple example of purported crypto ‘recommendation reports’ that float on the internet. How do you know they are what subscribers were given?

How can you be sure that the document is not manipulated by someone to ‘alter the buy up to and sell at’ prices?

In this simple situation, using V-ID, one could verify the authenticity of the document.

In a world of Deep Fakes, a solution like V-ID can be a lifesaver.

How big is the problem that V-ID solves? 

According to the Javelin Strategy report, Identity fraud cost $16.8 Billion dollars in 2019 alone.  

Obviously this includes credit card and account takeover frauds. However, when a solution like V-ID becomes integrated, there is an opportunity to curb these identity thefts as well.

Fraud Detection and Prevention which was valued at $17.33 billion is expected to grow at an 18% (CAGR) rate from 2019 to 2025.

The more diverse our technology becomes with the advent of Internet of Things, Artificial Intelligence, Cloud Computing, Augmented Reality and reliance on smart mobile devices, the more we grow vulnerable to fraud.

In our opinion, the fraud space is only going to grow bigger and faster.  

V-ID has an opportunity to place itself as a reliable solution by leveraging the blockchain’s resilience.

VIDT Technology

Source: V-ID

Using V-ID

Any solution’s success will depend on its ‘ease-of-use’. We tested the V-ID ‘certification’ to get a taste of the platform.

When we scanned the QR code of the document, it took us straight to the document where we could easily verify that it was indeed ‘authentic’.

The ease at which you can verify someone’s credentials, certifications, diplomas, etc., is simply awesome.

Users can verify the authenticity of other documents through their free online checker. Obviously, the company has to be signed up with V-ID for the documents to be ‘stamped’ on blockchain.

V-ID promises verification in 5 seconds.  Here is a video that shows how the verification works.

VIDT V-ID verification live demo

The V-ID validation service uses blockchain technology to end all document fraud. Our client base, with customers like Airbus Space & Defence, operates in va…

All in all, the concept behind V-ID is quite simple and easy to use.  

This ease of use accompanied by an amazing use case is what forms the basis for blockchain’s adoption.  The tool makes you forget about the blockchain altogether.

Does V-ID need Blockchain?

Yes. We think V-ID has a blockchain use case.

When it comes to providing a hack-resistant environment and resiliency to the underlying system, blockchain really shines.

The V-ID makes use of blockchain the backend without inundating the end users with the intricacies of ‘how blockchain works’ is quite admirable.

“Currently V-ID offers anchoring in Ethereum, Bitcoin, IBM Hyperledger, Fantom, LTO Network, Digibyte and Binance Chain.” 

For V-ID, in our opinion, Blockchain is not just a fancy jargon to allure people to the project but rather it is a smart technology choice to meet the business objectives.

Team

Vidt Team

Source: VIDT

Marnix van den Berg, Founder & CEO, has over 17 years of experience.  He is supported by 3 other Founders on the project.

Pim Voets is the Founder and Lead Concept Design, Ceciel van Helden is the Founder and Lead Programmer, Wico van Helden is one of the Founder.  

The teams section of the website shows about 9 team members and 6 advisors, including Chris Robinson, Ex-CTO of American Express.  

Just between the 4 founding members have a combined experience of over 70 years. Wico van Helden has hands-on experience in taking a company IPO.

Progress, Case-studies and traction

V-ID has been associated with many brands.  They showcase few case studies on their website:

VIDT Case study

AMSPEC is using the V-ID technology to verify the authenticity of their inspection reports

How AmSpec protects data integrity with V-ID

Amspec has started to utilise V-ID blockchain validation technology to protect the authenticity of their inspection reports. This means that recipients of a …

V-ID made history by bringing 17th Century Rembrandt to the blockchain.  This verification was made possible with CMS Law acting as notary, collaboration with Duowes Fine Arts and V-ID.  

VIDT Rembrandt on chain – V-ID collaboration with Douwes Fine Art and CMS

For the first time, V-ID’s validation platform, known for securing digital files against manipulation, extends its activities into the physical world, by val…

V-ID is bringing certificates and diplomas onto the blockchain.  To this end V-ID has collaborated with NYENRODE and HBO Drechtsteden.

V-ID successfully installed the first IBM Watson-connected IOE sensor with V-ID data anchoring.  

IBM & V-ID install first IoE sensor on IBM NL headquarters’ roof

www.internetofenvironments.org

V-ID partners with Caltrix Consultancy to offer a tailored solution for any financial organisation to comply with KYC/AML challenges. 

LTO Network and V-ID entered into a partnership by rolling out an immediately applicable, GDPR-compliant blockchain solution for companies and governments. 

This alliance allows for any party to verify the authenticity of the diamond using the certificate, and the authenticity of the certificate using the V-ID service.

The brands with which V-ID has worked with and the diversity of the projects they have been involved in bring a lot of confidence in this project, in our opinion.

Price – Revenue Model

Companies need cash flow to sustain and grow. It is important to have a revenue plan for the company to thrive.

V-ID offers 3 different pricing options that you can see below.

VIDT Price chart

Euro 2 per file may seem like a big deal but companies have the option to use the verification only for sensitive documents.

For example, on invoices or contracts, to ensure authenticity.  

Challenges to consider

Icon Latest UpdatesOne of our favorite projects, ICON, also rolled out the Broof concept which helps organizations verify certification.

Blockchain projects, like ICON, with existing capabilities could potentially ‘extend’ their solutions in the verification arena.  This could pose stiff competition.

The verification problem is so big that it can accommodate more than one player, however, the more players you have the more it dilutes the upside potential.

What Blockchain identity verification will not solve!

Demand for counterfeits

When all is said and done, counterfeits exist because they have market demand.  Without demand a product doesn’t sustain long.

There are millions of people who want to experience luxury on budget, by choice or because of lack of choice.

The projects like V-ID cannot solve the counterfeit market for those who specifically seek them out.  

However, the project does solve the ‘authenticity assurance’ demand for people who are paying the full price for the genuine product.

Market for ‘copies’

Digital products have an amazing advantage which is its major flaw and that is: it can be replicated without much effort.

If someone is deliberately seeking out for a pirated copy of something, there is so little you can do.

VIDT, Coinmarketcap and where to buy and sell?

V-ID Blockchain has its own native crypto with ticker symbol: VIDT.

We have to specify this because there is another project on coinmarketcap with VID symbol and we had few folks who seemed to be confused.

At the time of this writing, VIDT was ranked at 224.

At this time, you can buy and sell VIDT at KuCoin.

In conclusion

Blockchain finds a great ‘real-life’ business use case in V-ID.  

The association of the project, even if indirectly, with big brands like IBM, AirBus and more is just a testament to the viability of this solution.

While it may be possible for other projects to try and emulate the V-ID solution, the focus and dedication of the V-ID team could put up a mighty fight, in our opinion.

Ultimately, the problem of fraud is quite big and could easily accommodate success of multiple players.

In the end, we are coming to the same opinion about V-ID that Chris Robinson, ex-CTO of American Express, did and that is “V-ID is a rare combination of 3 things — A great idea in a large and almost green space market. A company with a proven track record and real-world customers. And, finally, an exceptionally high quality team and advisors.

Thank you for reading and sharing this article. Stay safe and healthy!

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We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto News Today #43

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Cryptocurrency Weekly News

What a week for the crypto bulls to come out!

Bitcoin performed exceptionally well and all the hibernating Crypto bulls spewed their predictions all over the internet.  

The hype frenzy was quite unreal and we are worried about the newbies that might buy into the hype and get in at the peak.

While most hypers were hibernating, we are keeping our calm and tracking the crypto space for the past 4 years.

If you want to see all that contributed (and continues to contribute) to the Blockchain, Bitcoin and crypto adoption – you just have to see the most important news since 2017.

In the spirit of continuing the tradition of keeping up with what matters, let’s dive into this week’s digest!

Brave and Guardian bring Firewall and VPN to iOS

brave-logoBrave Privacy browser that supports the Basic Attention Token (BAT) has partnered with Guardian to bring Firewall and VPN capabilities to the Brave Browser on iOS platform. In an announcement, Brave team disclosed that “with this partnership, the companies are integrating their technologies to enable the fastest, safest, most private Web browsing experience. Brave now offers Brave Firewall + VPN, available for download from the App Store. This partnership allows people to take back control of their own data, browse the Web, and use their apps more safely and securely.”

Ledger market data breach

Ledger Nano S reviewUnauthorized third party access using an API Key has compromised the contact and order details at Ledger.  A total of 1 Million email addresses might have been compromised. According to the official statement “Contact and order details were involved. This is mostly the email address of our customers, approximately 1M addresses. Further to investigating the situation we have also been able to establish that, for a subset of 9500 customers were also exposed, such as first and last name, postal address, phone number or ordered products. Due to the scope of this breach and our commitment to our customers, we have decided to inform all of our customers about this situation.”

Coinbase explores [more] new digital Assets

coinbase best exchangeCoinbase is exploring more digital assets to add to their platform.  These 19 digital assets include, as per the official post,  Ampleforth, Band Protocol, Balancer, Blockstack, Curve, Fetch.ai, Flexacoin, Helium, Hedera Hashgraph, Kava, Melon, Ocean Protocol, Paxos Gold, Reserve Rights, tBTC, The Graph, THETA, UMA, and WBTC. Obviously, there is no guarantee that all of these tokens are going to be added but it is quite interesting to see some of the good projects making the list.

Putin signs Crypto bill into law

Russia just passed a bill that will allow the companies in Russia to issue digital assets as long as they seek and procure approval from the Bank of Russia.  According to Reuters (translated) “They can be an object of collateral, purchase and sale transactions, exchange of one type of digital asset for another. At the same time, CFAs are not and are not recognized as a means of payment.”

SEC Wants to Start Scrutinizing Binance Chain Transactions

sec crypto regulations“The Contracting Officer has determined that CipherTrace Inc., is the only source that can reasonably meet the SEC’s requirement […].  CipherTrace products are the only known blockchain forensics and risk intelligence tool that can support the Binance coin (BNB) and all tokens on the Binance network.,” read the official statement issued by the SEC.  This makes it clear that the transactions that people have conducted on Binance assuming they are ‘immune’ from the US government’s scrutiny are going to be surprised by what follows.

Cardano mainnet launched

cardano staking newsCardano has successfully launched its mainnet and introduced its ‘Staking’ phase ‘Shelley’. The entire crypto community has been eagerly waiting for the launch and has received the upgrade quite positively with Cardano (ADA) price coasting at 13 cents. Generally, when the community is not happy with the upgrades and mainnet launch, it tends to show in the negative price action. The stabilizing price movement indicates that the Cardano community has welcomed the mainnet launch.

Thank you for reading and sharing this article. We appreciate you.

We have been tracking the most important news in blockchain and crypto space since 2017. You can check out all the chronicled news here.  

Consider subscribing to our newsletters to receive these news updates in ONE neat email per week along with other freebies that we give away once-in-a-while.

Thank you for reading and sharing this article. Stay safe and healthy!

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spam your inbox and we only send one email per week
with updates, news, eBooks, tax updates, and more!
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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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