We’ve heard it hundreds of times. Blockchain is Web 3.0 or Geekdom’s latest marvel. Entrepreneurs, or business owners, who capitalize on this technology when young make it rich. Innovators like Ripple turned a $10,000 investment into $1.5 million in five years. Binance, only a year old, has a market cap of $840.8 million, according to Coinmarketcap. So it’s understandable that you’d speculate about launching your own business blockchain. You may not want to innovate anything, but, hey, blockchain’s said to be the next Revolution. Blockchain fanatics say it’s a core differentiator and value driver, leading you, if you have a business, to quite likely think maybe you should jump on board.

Should you?

Brian Winker’s take on blockchain for business

Sometime last year, I interviewed Brian Winkers, founder of blockchain money automation company bitlov.com that won first place in the 2015 StartUp Chile! Competition.

Winkers himself is an open-source developer and Bitcoin analyst who has been playing around with crypto projects since 2012 and has helped small and medium-sized businesses get on or, rather, more often, off the blockchain.

For Winkers, blockchain for small business is a bonkers idea, largely because of Bitcoin. Bitcoin’s platform has problems with scalability: The platform is slow – around ten transactions per second compared to Visa’s 5,000 to 8,000 transactions in the same time span. The ledger became congested. The company itself struggles with internal squabbling.

Truth is Bitcoin is competing with more scalable and less problematic platforms like Ethereum and IOTA, so businesses can profit from blockchain more than was possible, say, ten years ago.

The problem is the expense.

Blockchain expense

Blockchain technology is free if you want to do all the work. The problem is recruiting a blockchain developer, and that’s where the trouble starts. As of 2018, a decent blockchain developer costs anywhere from $150,000 to $200,000 at the very least. Forget the fly-by-night freelancer from a platform like Elance, Guru or the like. Actually employing someone from such a platform would likely cost you more, since you may have to pay for errors. Any coding error or slight mishap means the ledger needs to be dismantled and rebuilt from scratch, aside from which technological changes occur so rapidly that top blockchain developers regularly familiarize themselves with updates.

Want a top developer? Expect to pay $250,000-$450,000 for a whiz, or triple that for a world-class specialist, according to Pavel Supronov on Medium. You think blockchain saves you money? According to John Levine, crypto consultant, author, and speaker, blockchain is the most expensive database ever invented.

Is your blockchain for innovation?

To get some ROI from your blockchain investment, you need some really BIG idea that’s stupendously different than competitors and that delights hordes of people. (Think of a Ripple or Binance).  Such a feat, according to Winkers, is performed by only two out of every hundred ICOs or startups.

In all my years,” Winkers told me, “I’ve only found one ICO that makes sense, and that’s the one I’m with right now. A Russian company called Visor looking to create a payment coin. I’m providing some technical guidance, more on the architecture side. I think they have a good team that understands the need to meet the underlying business needs. It’s not about them having a big payday.”

Winkers added:

I regularly tell businesses not to proceed with Bitcoin, but to focus on more conventional solutions. I try to help them customize their business, figure out what they can do.  Unfortunately, most people who approach me are dazzled by Bitcoin and the ledger. They don’t understand it… but just about everyone’s doing it so they want on the bandwagon. Now if they’d have a wonderful remarkable useful idea that may be one thing, but they often emerge with impractical, unfeasible ‘solutions’, so it’s a waste of their time and money.

At the end of the day, if your mind is on blockchain for fame or money, Winkers doubts you’ll succeed. You’ll want to have a solid idea that makes sense and that lasts for decades.

Blockchain to save you money?

How about if you don’t want to innovate but are sold by the blockchain hype and want blockchain to expedite your business? Say, you’ve read reports like that by management consulting giant Accenture and McLagan who insisted that blockchain promises cost savings of 70 percent or more in finance areas? Or you read the 2014 EY report how blockchain-based businesses outpace competitors?

Well, blockchains have certain problems that you’d want to know about…

The National Institute of Standards and Technology (NIST) – a non-regulatory agency of the U.S. Department of Commerce – recently released a report for beginners to blockchain and business owners often tempted by new technology.

The report pointed out that blockchain can’t control users’ conduct.  The NIST also highlighted the misconception that blockchain is “trustless” – you need a great deal of trust in the technology, developers, and user cooperation for the blockchain to function. Further, users must manage their own private keys that, once lost, are harder to recover than usernames or passwords on centralized platforms.

Additionally, blockchains are massively inefficient. Set up a blockchain and you’ll need each and every user to archive, and constantly update, a complete history of all that’s happened on that blockchain. 

Finally, but not conclusively, blockchains also require a computational challenge to restrict the creation of new blocks. If it’s too easy, hackers could temporarily mobilize enough computing power to rewrite history; if it’s too hard, each new block will consume megawatts of electricity. And electricity for blockchain costs hundreds, if not thousands, of dollars.

On the other hand…

As we speak, blockchain improves all the time. More modern technologies produce decentralized platforms that have more bandwidth, are faster, more convenient, easier to program. IOTA, for example,  uses a “blockchain” that isn’t the traditional format but a new one called Tangle that knocks out the expense and time of mining. IOTA transactions are super-fast and process several transactions simultaneously.  Its structure perfectly suits the Internet of Things (IoT), where products and appliances like cars, home appliances and machinery “tangle”. Businesses on  “next generation” blockchains like IOTA report a smooth, fast and cheap experience that almost resembles that of the Web.

So to blockchain or not to blockchain?

A unanimous decision tree floating the Web may resolve your problem.

Ask yourself the following:

  1. If you need a database, are all the writers or participants on your team known and trusted? Is there anything you need to hide? Do you need to hire, or involve, trusted third parties? Do you need to control functionality? Are your transactions private? If your answers are a flat “no” to each of these questions, either stick to a standard database or use a public blockchain.
  2. Does more than one participant need to be able to update the data? Do you need to hire third-parties whom you’re unsure whether you can trust? Do you have any confidential data? Do you and all the updates on your team barely know one another or have some qualms of one or more users? If you answered “yes” to one or more of these questions, use a permissioned or hybrid blockchain.
  3. Does the data need to be kept private? Do you need to control who can make changes to the blockchain software? Do you have the money for blockchain programming and continuous maintenance and upgrades? Consider a private blockchain.
Do you even need Blockchain?

Even then Winkers would tell you to mull your decisions carefully. 

“I’ve always worked to make sure that small businesses aren’t taken advantage of by others in the technical fields,” he told me, “And that includes blockchain. For some it’s the right path, for others, it’s a costly diversion.”

“ICO companies that invest in blockchain have a 98% failure rate. That’s not the route,” Brian insisted, ”that I’d want to take.”

 

We’re working to bring you an all new BlockExplorer.com. Can we ask for your help? Please take a few moments to answer the below questions. We’ll compile the answers and share with you, our readers, in the coming weeks. From all of us at Block Explorer, a sincere thank you!

hand-coin

by Petros Koutoupis
Originally published in Linux Journal, republished with permission


How to set up a private ethereum blockchain using open-source tools and a
look at some markets and industries where blockchain technologies can add value.

In Part I, I spent quite a bit of time exploring cryptocurrency
and the mechanism that makes it possible: the blockchain. I covered details
on how the blockchain works and why it is so secure and
powerful. In this second part, I describe how to set up and configure your very own
private ethereum blockchain using open-source tools. I also look
at where this technology can bring some value or help redefine how people
transact across a more open web.

Setting Up Your Very Own Private Blockchain Network

In this section, I explore the mechanics of an ethereum-based
blockchain network—specifically, how to create a private ethereum
blockchain, a private network to host and share this blockchain,
an account, and then how to do some interesting things with the
blockchain.

What is ethereum, again? Ethereum is an open-source and public blockchain
platform featuring smart contract (that is, scripting) functionality. It
is similar to bitcoin but differs in that it extends beyond monetary
transactions.

Smart contracts are written in programming languages, such as Solidity
(similar to C and JavaScript), Serpent (similar to Python), LLL (a
Lisp-like language) and Mutan (Go-based). Smart contracts are compiled
into EVM (see below) bytecode and deployed across the ethereum blockchain
for execution. Smart contracts help in the exchange of money, property,
shares or anything of value, and it does so in a transparent and conflict-free
way avoiding the traditional middleman.

If you recall from Part I, a typical layout for any
blockchain is one where all nodes are connected to every other node,
creating a mesh. In the world of ethereum, these nodes are referred
to as Ethereum Virtual Machines (EVMs), and each EVM will host a copy
of the entire blockchain. Each EVM also will compete to mine the next
block or validate a transaction. Once the new block is appended to the
blockchain, the updates are propagated to the entire network, so that
each node is synchronized.

In order to become an EVM node on an ethereum network, you’ll need to
download and install the proper software. To accomplish this, you’ll
be using Geth (Go Ethereum). Geth is the official Go implementation
of the ethereum protocol. It is one of three such implementations;
the other two are written in C++ and Python. These open-source software
packages are licensed under the GNU Lesser General Public License (LGPL)
version 3. The standalone Geth client packages for all
supported operating systems and architectures, including Linux, are available
here. The source code for
the package is hosted on GitHub.

Geth is a command-line interface (CLI) tool that’s used to communicate
with the ethereum network. It’s designed to act as a link between your
computer and all other nodes across the ethereum network. When a block
is being mined by another node on the network, your Geth installation
will be notified of the update and then pass the information along to
update your local copy of the blockchain. With the Geth utility, you’ll
be able to mine ether (similar to bitcoin but the cryptocurrency
of the ethereum network), transfer funds between two addresses, create
smart contracts and more.

Download and Installation

In my examples here, I’m configuring this ethereum blockchain on the
latest LTS release of Ubuntu. Note that the tools themselves are
not restricted to this distribution or release.


Downloading and Installing the Binary from the Project Website

Download the latest stable release, extract it and copy it to a proper
directory:


$ wget https://gethstore.blob.core.windows.net/builds/
↪geth-linux-amd64-1.7.3-4bb3c89d.tar.gz
$ tar xzf geth-linux-amd64-1.7.3-4bb3c89d.tar.gz
$ cd geth-linux-amd64-1.7.3-4bb3c89d/
$ sudo cp geth /usr/bin/

Building from Source Code

If you are building from source code, you need to install both
Go and C compilers:


$ sudo apt-get install -y build-essential golang

Change into the directory and do:


$ make geth


Installing from a Public Repository

If you are running on Ubuntu and decide to install the package from a
public repository, run the following commands:


$ sudo apt-get install software-properties-common
$ sudo add-apt-repository -y ppa:ethereum/ethereum
$ sudo apt-get update
$ sudo apt-get install ethereum

Getting Started

Here is the thing, you don’t have any ether to start with. With that in
mind, let’s limit this deployment to a “private” blockchain network
that will sort of run as a development or staging version of the main
ethereum network. From a functionality standpoint, this private network
will be identical to the main blockchain, with the exception that all
transactions and smart contracts deployed on this network will be
accessible only to the nodes connected in this private network. Geth will
aid in this private or “testnet” setup. Using the tool, you’ll
be able to do everything the ethereum platform advertises, without
needing real ether.

Remember, the blockchain is nothing more than a digital and public
ledger preserving transactions in their chronological order. When
new transactions are verified and configured into a block, the block
is then appended to the chain, which is then distributed across the
network. Every node on that network will update its local copy of
the chain to the latest copy. But you need to start from some point—a
beginning or a genesis. Every blockchain starts with a genesis block,
that is, a block “zero” or the very first block of the chain. It
will be the only block without a predecessor. To create
your private blockchain, you need to create this genesis block. To
do this, you need to create a custom genesis file and then tell Geth
to use that file to create your own genesis block.

Create a directory path to host all of your ethereum-related data and
configurations and change into the config subdirectory:


$ mkdir ~/eth-evm
$ cd ~/eth-evm
$ mkdir config data
$ cd  config

Open your preferred text editor and save the following contents to a
file named Genesis.json in that same directory:


{
    "config": {
        "chainId": 999,
        "homesteadBlock": 0,
        "eip155Block": 0,
        "eip158Block": 0
    },
    "difficulty": "0x400",
    "gasLimit": "0x8000000",
    "alloc": {}
}

This is what your genesis file will look like. This simple JSON-formatted
string describes the following:

  • config — this block defines the settings for your custom chain.
  • chainId — this identifies your Blockchain, and because the
    main ethereum network has its own, you need to configure your own unique
    value for your private chain.
  • homesteadBlock — defines the version and protocol of the
    ethereum platform.
  • eip155Block / eip158Block — these fields add support for
    non-backward-compatible protocol changes to the Homestead version used. For
    the purposes of this example, you won’t be leveraging these, so they are set
    to “0”.
  • difficulty — this value controls block generation time of
    the blockchain. The higher the value, the more calculations a miner must
    perform to discover a valid block. Because this example is simply deploying a
    test network, let’s keep this value low to reduce wait times.
  • gasLimit — gas is ethereum’s fuel spent during
    transactions. As you do not want to be limited in your tests, keep this value
    high.
  • alloc — this section prefunds accounts, but because you’ll
    be mining your ether locally, you don’t need this option.

Now it’s time to instantiate the data directory. Open a terminal
window, and assuming you have the Geth binary installed and that it’s
accessible via your working path, type the following:


$ geth --datadir /home/petros/eth-evm/data/PrivateBlockchain
 ↪init /home/petros/eth-evm/config/Genesis.json
WARN [02-10|15:11:41] No etherbase set and no accounts found
 ↪as default
INFO [02-10|15:11:41] Allocated cache and file handles
    ↪database=/home/petros/eth-evm/data/PrivateBlockchain/
↪geth/chaindata cache=16 handles=16
INFO [02-10|15:11:41] Writing custom genesis block
INFO [02-10|15:11:41] Successfully wrote genesis state
    ↪database=chaindata
hash=d1a12d...4c8725
INFO [02-10|15:11:41] Allocated cache and file handles
    ↪database=/home/petros/eth-evm/data/PrivateBlockchain/
↪geth/lightchaindata cache=16 handles=16
INFO [02-10|15:11:41] Writing custom genesis block
INFO [02-10|15:11:41] Successfully wrote genesis state
    ↪database=lightchaindata

The command will need to reference a working data directory
to store your private chain data. Here, I have specified
eth-evm/data/PrivateBlockchain subdirectories in my home
directory. You’ll also need to tell the utility to initialize using
your genesis file.

This command populates your data directory with a tree of
subdirectories and files:


$ ls -R /home/petros/eth-evm/
.:
config  data

./config:
Genesis.json

./data:
PrivateBlockchain

./data/PrivateBlockchain:
geth  keystore

./data/PrivateBlockchain/geth:
chaindata  lightchaindata  LOCK  nodekey  nodes  transactions.rlp

./data/PrivateBlockchain/geth/chaindata:
000002.ldb  000003.log  CURRENT  LOCK  LOG  MANIFEST-000004

./data/PrivateBlockchain/geth/lightchaindata:
000001.log  CURRENT  LOCK  LOG  MANIFEST-000000

./data/PrivateBlockchain/geth/nodes:
000001.log  CURRENT  LOCK  LOG  MANIFEST-000000

./data/PrivateBlockchain/keystore:

Your private blockchain is now created. The next step involves starting
the private network that will allow you to mine new blocks and have them
added to your blockchain. To do this, type:


[email protected]:~/eth-evm$ geth --datadir
 ↪/home/petros/eth-evm/data/PrivateBlockchain --networkid 9999
WARN [02-10|15:11:59] No etherbase set and no accounts found
 ↪as default
INFO [02-10|15:11:59] Starting peer-to-peer node
    ↪instance=Geth/v1.7.3-stable-4bb3c89d/linux-amd64/go1.9.2
INFO [02-10|15:11:59] Allocated cache and file handles
    ↪database=/home/petros/eth-evm/data/PrivateBlockchain/
↪geth/chaindata cache=128 handles=1024
WARN [02-10|15:11:59] Upgrading database to use lookup entries
INFO [02-10|15:11:59] Initialised chain configuration
    ↪config="{ChainID: 999 Homestead: 0 DAO: <nil> DAOSupport:
 ↪false EIP150: <nil> EIP155: 0 EIP158: 0 Byzantium: <nil>
 ↪Engine: unknown}"
INFO [02-10|15:11:59] Disk storage enabled for ethash caches
    ↪dir=/home/petros/eth-evm/data/PrivateBlockchain/
↪geth/ethash count=3
INFO [02-10|15:11:59] Disk storage enabled for ethash DAGs
 ↪dir=/home/petros/.ethash count=2
INFO [02-10|15:11:59] Initialising Ethereum protocol
    ↪versions="[63 62]" network=9999
INFO [02-10|15:11:59] Database deduplication successful
    ↪deduped=0
INFO [02-10|15:11:59] Loaded most recent local header
    ↪number=0 hash=d1a12d...4c8725 td=1024
INFO [02-10|15:11:59] Loaded most recent local full block
    ↪number=0 hash=d1a12d...4c8725 td=1024
INFO [02-10|15:11:59] Loaded most recent local fast block
    ↪number=0 hash=d1a12d...4c8725 td=1024
INFO [02-10|15:11:59] Regenerated local transaction journal
    ↪transactions=0 accounts=0
INFO [02-10|15:11:59] Starting P2P networking
INFO [02-10|15:12:01] UDP listener up
    ↪self=enode://f51957cd4441f19d187f9601541d66dcbaf560
↪770d3da1db4e71ce5ba3ebc66e60ffe73c2ff01ae683be0527b77c0f96
↪[email protected][::]:30303
INFO [02-10|15:12:01] IPC endpoint opened: /home/petros/eth-evm/
↪data/PrivateBlockchain/geth.ipc
INFO [02-10|15:12:01] RLPx listener up
    ↪self=enode://f51957cd4441f19d187f9601541d66dcbaf560
↪770d3da1db4e71ce5ba3ebc66e60ffe73c2ff01ae683be0527b77c0f96
↪[email protected][::]:30303

Notice the use of the new parameter, networkid. This
networkid helps
ensure the privacy of your network. Any number can be used here. I
have decided to use 9999. Note that other peers joining your network
will need to use the same ID.

Your private network is now live! Remember, every time you need to access
your private blockchain, you will need to use these last two
commands with the exact same parameters (the Geth tool will not remember
it for you):


$ geth --datadir /home/petros/eth-evm/data/PrivateBlockchain
 ↪init /home/petros/eth-evm/config/Genesis.json
$ geth --datadir /home/petros/eth-evm/data/PrivateBlockchain
 ↪--networkid 9999

Configuring a User Account

So, now that your private blockchain network is up and running, you can
start interacting with it. But in order to do so, you need to attach
to the running Geth process. Open a second terminal window. The
following command will attach to the instance running in the first
terminal window and bring you to a JavaScript console:


$ geth attach /home/petros/eth-evm/data/PrivateBlockchain/geth.ipc
Welcome to the Geth JavaScript console!

instance: Geth/v1.7.3-stable-4bb3c89d/linux-amd64/go1.9.2
 modules: admin:1.0 debug:1.0 eth:1.0 miner:1.0 net:1.0
 ↪personal:1.0 rpc:1.0 txpool:1.0 web3:1.0

>

Time to create a new account that will manipulate the Blockchain network:


> personal.newAccount()
Passphrase:
Repeat passphrase:
"0x92619f0bf91c9a786b8e7570cc538995b163652d"

Remember this string. You’ll need it shortly. If
you forget this hexadecimal string, you can reprint it to the console
by typing:


> eth.coinbase
"0x92619f0bf91c9a786b8e7570cc538995b163652d"

Check your ether balance by typing the following script:


> eth.getBalance("0x92619f0bf91c9a786b8e7570cc538995b163652d")
0

Here’s another way to check your balance without needing to type
the entire hexadecimal string:


> eth.getBalance(eth.coinbase)
0

Mining

Doing real mining in the main ethereum blockchain requires some very
specialized hardware, such as dedicated Graphics Processing Units (GPU),
like the ones found on the high-end graphics cards mentioned in Part I.
However, since you’re mining for blocks on a private chain
with a low difficulty level, you can do without that requirement. To
begin mining, run the following script on the JavaScript console:


> miner.start()
null

Updates in the First Terminal Window

You’ll observe mining activity in the output logs displayed in the
first terminal window:


INFO [02-10|15:14:47] Updated mining threads
    ↪threads=0
INFO [02-10|15:14:47] Transaction pool price threshold
 ↪updated price=18000000000
INFO [02-10|15:14:47] Starting mining operation
INFO [02-10|15:14:47] Commit new mining work
    ↪number=1 txs=0 uncles=0 elapsed=186.855us
INFO [02-10|15:14:57] Generating DAG in progress
    ↪epoch=1 percentage=0 elapsed=7.083s
INFO [02-10|15:14:59] Successfully sealed new block
    ↪number=1 hash=c81539...dc9691
INFO [02-10|15:14:59] mined potential block
    ↪number=1 hash=c81539...dc9691
INFO [02-10|15:14:59] Commit new mining work
    ↪number=2 txs=0 uncles=0 elapsed=211.208us
INFO [02-10|15:15:04] Generating DAG in progress
    ↪epoch=1 percentage=1 elapsed=13.690s
INFO [02-10|15:15:06] Successfully sealed new block
    ↪number=2 hash=d26dda...e3b26c
INFO [02-10|15:15:06] mined potential block
    ↪number=2 hash=d26dda...e3b26c
INFO [02-10|15:15:06] Commit new mining work
    ↪number=3 txs=0 uncles=0 elapsed=510.357us

[ ... ]

INFO [02-10|15:15:52] Generating DAG in progress
    ↪epoch=1 percentage=8 elapsed=1m2.166s
INFO [02-10|15:15:55] Successfully sealed new block
    ↪number=15 hash=d7979f...e89610
INFO [02-10|15:15:55] block reached canonical chain
    ↪number=10 hash=aedd46...913b66
INFO [02-10|15:15:55] mined potential block
    ↪number=15 hash=d7979f...e89610
INFO [02-10|15:15:55] Commit new mining work
    ↪number=16 txs=0 uncles=0 elapsed=105.111us
INFO [02-10|15:15:57] Successfully sealed new block
    ↪number=16 hash=61cf68...b16bf2
INFO [02-10|15:15:57] block reached canonical chain
    ↪number=11 hash=6b89ff...de8f88
INFO [02-10|15:15:57] mined potential block
    ↪number=16 hash=61cf68...b16bf2
INFO [02-10|15:15:57] Commit new mining work
    ↪number=17 txs=0 uncles=0 elapsed=147.31us

Back to the Second Terminal Window

Wait 10–20 seconds, and on the JavaScript console, start checking your balance:


> eth.getBalance(eth.coinbase)
10000000000000000000

Wait some more, and list it again:


> eth.getBalance(eth.coinbase)
75000000000000000000

Remember, this is fake ether, so don’t open that bottle of champagne,
yet. You are unable to use this ether in the main ethereum network.

To stop the miner, invoke the following script:


> miner.stop()
true

Well, you did it. You created your own private blockchain and mined some ether.

Who Will Benefit from This Technology Today and in the Future?

Although the blockchain originally was developed around cryptocurrency
(more specifically, bitcoin), its uses don’t end there. Today,
it may seem like that’s the case, but there are untapped industries and
markets where blockchain technologies can redefine how transactions
are processed. The following are some examples that come to mind.


Improving Smart Contracts

Ethereum, the same open-source blockchain project deployed
earlier, already is doing the whole smart-contract thing, but the
idea is still in its infancy, and as it matures, it will evolve to meet
consumer demands. There’s plenty of room for growth in this
area. It probably and eventually will creep into governance of companies
(such as verifying digital assets, equity and so on), trading stocks,
handling intellectual property and managing property
ownership, such as land title registration.


Enabling Market Places and Shared Economies

Think of eBay but refocused to be peer-to-peer. This would mean no
more transaction fees, but it also will emphasize the importance of your
personal reputation, since there will be no single body governing the
market in which goods or services are being traded or exchanged.


Crowdfunding

Following in the same direction as my previous remarks about a decentralized
marketplace, there also are opportunities for individuals or
companies to raise the capital necessary to help “kickstart” their
initiatives. Think of a more open and global Kickstarter or GoFundMe.


Multimedia Sharing or Hosting

A peer-to-peer network for aspiring or established musicians
definitely could go a long way here—one where the content will reach
its intended audiences directly and also avoid those hefty royalty costs paid
out to the studios, record labels and content distributors. The same
applies to video and image content.


File Storage and Data Management

By enabling a global peer-to-peer network, blockchain technology
takes cloud computing to a whole new level. As the technology continues
to push itself into existing cloud service markets, it will challenge
traditional vendors, including Amazon AWS and even Dropbox and
others—and it will do so at a fraction of the price. For example, cold
storage data offerings are a multi-hundred billion dollar market today. By
distributing your encrypted archives across a global and decentralized
network, the need to maintain local data-center equipment by a single
entity is reduced significantly.

Social media and how your posted content is managed would change under
this model as well. Under the blockchain, Facebook or Twitter or anyone
else cannot lay claim to what you choose to share.

Another added benefit to leveraging blockchain here is making use of
the cryptography securing your valuable data from getting hacked or lost.

Internet of Things

What is the Internet of Things (IoT)? It is a broad term describing the
networked management of very specific electronic devices, which include
heating and cooling thermostats, lights, garage doors and more. Using
a combination of software, sensors and networking facilities, people can
easily enable an environment where they can automate and monitor home
and/or business equipment.


Supply Chain Audits

With a distributed public ledger made available to consumers,
retailers can’t falsify claims made against their products.
Consumers will have the ability to verify their sources, be it food,
jewelry or anything else.

Identity Management

There isn’t much to explain here. The threat is very real. Identity
theft never takes a day off. The dated user name/password systems of today
have run their course, and it’s about time that existing authentication
frameworks leverage the cryptographic capabilities offered by the
blockchain.

Summary

This revolutionary technology has enabled organizations in ways that
weren’t possible a decade ago. Its possibilities are enormous, and it
seems that any industry dealing with some sort of transaction-based
model will be disrupted by the technology. It’s only a matter of time
until it happens.

Now, what will the future for blockchain look like? At this stage, it’s
difficult to say. One thing is for certain though;
large companies, such as IBM, are investing big into the technology
and building their own blockchain infrastructure that can be sold to
and used by corporate enterprises and financial institutions. This
may create some issues, however. As these large companies build their
blockchain infrastructures, they will file for patents to protect their
technologies. And with those patents in their arsenal, there exists the
possibility that they may move aggressively against the competition in
an attempt to discredit them and their value.

Anyway, if you will excuse me, I need to go make some crypto-coin.

About the Author
Petros Koutoupis, Linux Journal Editor at Large, is a senior platform architect at IBM for its Cloud Object Storage division (formerly Cleversafe). He is also the creator and maintainer of the RapidDisk Project. Petros has worked in the data storage industry for well over a decade and has helped pioneer the many technologies unleashed in the wild today.

San Francisco-based Ripple has announced the University Blockchain Research Initiative – a partnership with 17 top universities from around the globe focused on supporting and accelerating “academic research, technical development and innovation in blockchain, cryptocurrency, and digital payments.”

To fund the new research initiative, Ripple has committed to investing $50 million to support various research projects. In the announcement, Team Ripple talks about the motivation behind their investment in the University Blockchain Research Initiative:

‘Interest in blockchain is soaring, with a groundswell of activity taking place on the campuses of the world’s top universities. From new business use cases — such as making cross-border payments faster, lower cost and more transparent — to uses of blockchain for good, students and faculty globally are emerging as major contributors to the creation of a more robust and valuable blockchain and payments ecosystem.’

The statement continues:

“As one of the most mature companies in the space, Ripple is uniquely suited to partner with the academic community and help lead development of this ecosystem.”

Despite Ripple funding the efforts, universities will be able to choose their own research topics. The 17 universities included in the initiative are as follows:

  • Australian National University College of the Law
  • CITP at Princeton
  • CSAIL at MIT
  • Delft University of Technology (Netherlands)
  • Fundação Getulio Vargas (Brazil)
  • Haas School of Business, University of California, Berkeley
  • IIT Bombay
  • International Institute of Information Technology, Hyderabad (IIIT-H)
  • Korea University
  • McCombs School of Business, UT-Austin
  • The University of North Carolina at Chapel Hill
  • The University of Pennsylvania
  • UCL (University College London)
  • University of Luxembourg
  • University of Nicosia (Cyprus)
  • University of Oregon
  • University of Waterloo

Ripple hopes by combining a “broad cross-section of geographies and markets, as well as a rich blend of academic disciplines” the initiative will achieve greater breakthroughs in their research.

Ripple is no stranger to assisting educational efforts. In March on “Best School Day,” the firm donated $29 million in XRP to purchase school supplies and other materials.

coin renders

Use our news to inform cryptocurrency trading decisions, stay up-to-date on happenings in the industry, and more!

Hospital Launches Cryptocurrency Addiction Rehab Clinic
A Scottish hospital has launched a crypto rehab unit and by all accounts, the calls are flooding in. “Cryptocurrency users can get hooked by the volatile fluctuation of prices online which creates a ‘high’ when they buy or trade a winning currency,” said Castle Craig Hospital in a press release. “This can be exciting but also addictive and, like gambling addiction, can be financially disastrous.” MarketWatch features a 10 question survey for you to determine if you’re a pathological cryptocurrency addict.

Venezuela Bans Crypto Mining Rigs From Entering the Country
Despite the Venezuelan government embracing cryptocurrency with open arms, reports BlockExplorer’s Tony Spilotro, the country has taken a stand against cryptocurrency mining, going as far as to ban related computer equipment from entering the country.

Trading App Startup Taylor Says All Funds Have Been Stolen In Cyberattack
Taylor, a smart cryptocurrency trading assistant, was robbed of all of their funds, ZDNet reports.
The attack is said to have taken place on Tuesday of last week. In a Medium blog post, the Taylor team said “all of our funds have been stolen. Not only the balance in ETH (2,578.98 ETH) but also the TAY tokens from the Team and Bounty pools.”

Blockchain NW, Seattle’s First Crypto Conference, Begins Next Week
Seattle’s first blockchain conference begins Tuesday, June 5. The event will feature 50+ speakers who specialize in blockchain business and technology. Special to this event is a Blockchain career fair set up to match Pacific Northwest employers and employees. And if there was any doubt, tickets can be purchased with cryptocurrency.

Image courtesy of Carty Sewill, http://cartyisme.com/