Tag: blockchain

What is the use of blockchain technology?
What is the use of blockchain technology actually has very broad application prospects?
Blockchain technology is a core innovative database technology used by almost all cryptocurrencies. By distributing the same database copy throughout the network, it is very difficult for hackers to crack or deceive the system. Although cryptocurrency is currently one of the most popular blockchain applications, in fact, the technology has the potential to provide services for a very wide range of applications.
What is blockchain?
The core of the blockchain is a distributed digital ledger that can store any type of data, including cryptocurrency transactions, NFT ownership, and Defi smart contracts.

What is blockchain
Although any traditional database can store this kind of information, the blockchain is unique in its complete decentralization. Compared with a system maintained by a central administrator (such as an Excel spreadsheet or a bank database) in a central organization, many identical copies of the blockchain database are stored on multiple computers distributed in the network, and these individual computers are called Is the node.
How does the blockchain work?
The name “blockchain” is not a whim. The digital ledger is usually described as a “chain” composed of a single “data block”. When new data is added to the network, a new “block” is created and appended to the “chain”, which involves all nodes updating the version of their blockchain ledger to make it the same.
How to create these new blocks is the key to why the blockchain is considered to be highly secure. Before adding new blocks to the ledger, most nodes must verify and confirm the legitimacy of the new data. For cryptocurrencies, they may involve ensuring that a new transaction in a block is not fraudulent, or ensuring that the coin is not used more than once. This is different from an independent database or spreadsheet where anyone can make changes without supervision.
C. Neil Gray, the partner of Duane Morris LLP’s financial technology business unit, said: “Once a consensus is reached, the block will be added to the chain and the transaction will be recorded in the distributed ledger. The blocks are securely connected, Form a secure digital chain from the creation of the ledger to the present.”
Transactions usually use encryption technology for security protection, which means that nodes need to solve complex mathematical equations to process transactions.
Sarah Shtylman, a fintech and blockchain consultant at Perkins Coie, pointed out that “as a reward for their efforts in verifying changes to shared data, nodes usually receive a new amount of local currency in the blockchain, for example, the Bitcoin blockchain New Bitcoin on the Internet”
Blockchains are often divided into public chains and private chains. In public blockchains, anyone can participate, which means that they can read, write or audit data on the blockchain. It is worth noting that Without the authority of a control node, it is difficult to change the transactions recorded in the public blockchain.
At the same time, the private blockchain is controlled by an organization or group, and only it can decide who is invited to the system, and it has the right to modify the blockchain. In addition to being scattered on multiple nodes to increase security, this private chain is more similar to an internal data storage system.

How is the blockchain used?
Blockchain technology is used for many different purposes, from providing financial services to managing voting systems.
1. Cryptocurrency
The most common use of blockchain today is as the core of cryptocurrencies, such as Bitcoin or Ethereum. When people buy, exchange or use cryptocurrency, the transaction is recorded on the blockchain. The more people use cryptocurrency, the more widespread the blockchain will become.
Patrick Daughty, the senior partner of Foley & Lardner and head of the blockchain task force, pointed out that “due to the instability of cryptocurrencies, they have not been used in large quantities to purchase goods and services. Retail customers widely provide digital asset services, and this situation is changing.”
2. Banking
In addition to cryptocurrency, blockchain is also used to process transactions in fiat currencies such as the U.S. dollar and euro. This may be faster than sending money through a bank or other financial institution because these transactions can be verified and processed faster outside of normal office hours.
3. Asset transfer
Blockchain can also be used to record and transfer the ownership of different assets, such as the currently very popular NFT as a representative of the ownership of digital art and video.
However, blockchain can also be used to handle the ownership of real assets, such as real estate and vehicle deeds. Both parties of one party first use the blockchain to verify that one party owns the property and the other party has the money to buy it, and then they can complete and record the sale on the blockchain.
Through this process, they can transfer the property contract without manually submitting documents to update the records of the local county government, which will be updated instantly in the blockchain.
4. Smart contract
Another important direction of blockchain innovation is to automatically execute contracts, usually called “smart contracts.” Once the conditions are met, these digital contracts will automatically take effect. For example, once the buyer and seller meet all the specific parameters of the transaction, the payment for the goods can be executed immediately.
Gray pointed out: “We see the huge potential in the field of smart contracts, using blockchain technology and coding instructions to automate legal contracts.” Smart legal contracts correctly coded on distributed ledgers can minimize or eliminate the external need for a third party to verify performance.
5. Supply chain monitoring
The supply chain involves a lot of information, especially when goods are transported from one place in the world to another. With traditional data storage methods, it is difficult to find the source of the problem, such as where the supplier’s inferior goods come from. Storing this information on the blockchain will make it easier to follow and monitor the supply chain, such as IBM’s FoodTrust, which uses blockchain technology to track the entire process of food from harvest to consumption.
6. Voting
Experts are studying how to use blockchain to prevent fraud in voting. In theory, blockchain voting will allow people to submit votes that cannot be tampered with, and it can also eliminate the need for people to manually collect and verify paper votes.

Advantages of blockchain
1. Higher transaction accuracy
Because transactions in the blockchain must be verified by multiple nodes to reduce errors, if one node makes an error in the database, other nodes will see the difference and capture the error.
On the contrary, in a traditional database, if someone makes a mistake, it may be easier to pass. In addition, each asset is individually identified and tracked on the blockchain ledger, so it is impossible to pay it twice. One person overdrafts the bank account and spends a sum of money twice in the block It cannot be established in the chain field.
2. No intermediary required
Using blockchain technology, both parties in a transaction can complete the transaction without going through a third party, which saves time and costs to intermediaries such as banks.
Shtylman pointed out: “Blockchain technology has the ability to bring higher efficiency to all digital businesses, and enhance the financial capabilities of the population in areas where there are no banks or under-banked areas in the world, thereby providing power for a new generation of Internet applications.”
3. Extra safety
In theory, decentralized networks, such as blockchain, make it almost impossible for people to conduct fraudulent transactions. Forging transactions will require hacking every node and changing every ledger. Although this is not necessarily impossible, many cryptocurrency blockchain systems use PoS consensus mechanism or PoW consensus mechanism transaction verification methods, which makes it difficult to increase fraudulent transactions, and does not meet the maximum of participants. interest.
4. More effective transfer
Thanks to the round-the-clock operation of the blockchain, people can carry out financial and asset transfers more effectively, especially internationally. They do not need to wait for several days, do not need banks or government agencies to solve all problems manually.

Disadvantages of blockchain technology
1. The limit of processing transactions per second
Considering that blockchain technology relies on a larger network to approve transactions, its moving speed is limited. For example, Bitcoin can only process 4.6 transactions per second, while Visa can process 1,700 transactions per second. In addition, more and more transactions will cause network speed problems. Before that, scalability was a challenge.
2. High energy costs
Having all nodes working to verify transactions consumes more power than a single database or spreadsheet. This not only makes blockchain-based transactions more expensive but also creates a huge carbon burden on the environment.
Because of this, some industry leaders have begun to abandon certain blockchain technologies, such as Bitcoin. Elon Musk recently stated that Tesla will stop accepting Bitcoin as a means of payment, partly because he is worried about Bitcoin’s environmental damage. On May 13, 2021, Elon Musk tweeted that the energy usage trends in the past few months have been crazy.
3. Risk of asset loss
Some digital assets are protected by encryption keys, such as encrypted currencies in blockchain wallets. Users need to keep this key carefully.
Gray said: “If the owner of a digital asset loses the private cryptographic key that allows them to access the asset, there is currently no way to recover it. The asset has disappeared forever.” Because the system is decentralized, you cannot call The central institution like the bank requested a re-visit.
4. Potential illegal activities
The decentralization of blockchain adds more privacy and confidentiality, which unfortunately makes it attractive to criminals. It is more difficult to track illegal transactions on the blockchain than through bank transactions linked to names.

How to invest in blockchain?
In fact, you cannot invest in the blockchain itself, because it is just a system for storing and processing transactions. However, you can use this technology to invest in assets and companies.
Gray said: “The easiest way is to configure cryptocurrencies, such as Bitcoin, Ethereum, and other tokens running on the blockchain.”

Another option is to use this technology to invest in blockchain companies. For example, Santander Bank is experimenting with blockchain-based financial products. If you are interested in getting access to blockchain technology in your portfolio, you can buy some shares.
To take a more diversified approach, you can buy an exchange-traded fund (ETF) that invests in blockchain assets and related companies. For example, Amplify Transformational Data Sharing ETF (BLOK), which invests at least 80% of its assets in blockchain companies.
Dilemma
Despite the bright future of blockchain, it is still a niche technology. Gray believes that blockchain may be used in more situations, but it depends on future government policies. “It remains to be seen when and whether regulatory agencies such as the US Securities and Exchange Commission will act. But one thing we can be sure of is that our goal is to protect the market and investors.
Shtylman compares the current development of the blockchain to the early stages of the Internet. “It took us 15 years to see the first version of Google and more than 20 versions of Facebook. It is difficult for us to predict how far blockchain technology will develop in the next 10 or 15 years, but just like the Internet, It will significantly change the way we trade and interact in the future.”
Difficulties remain, especially in terms of transaction restrictions and energy costs, but for investors who see the potential of this technology, blockchain-based investments are worth bets.
The original report comes from David Rodeck and John Schmidt. David Rodeck is a financial writer in Delaware, specializing in investment, insurance, and optimizing retirement plans. John Schmidt is a Forbes consultant and assistant editor of “Investment and Retirement” magazine. The Chinese version is compiled and compiled by the chain market team, and the English copyright belongs to the original author. For a Chinese reprint, please contact the compiler.

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July 4, 2024
What is the use of blockchain technology?
What is the use of blockchain technology actually has very broad application prospects?
Blockchain technology is a core innovative database technology used by almost all cryptocurrencies. By distributing the same database copy throughout the network, it is very difficult for hackers to crack or deceive the system. Although cryptocurrency is currently one of the most popular blockchain applications, in fact, the technology has the potential to provide services for a very wide range of applications.
What is blockchain?
The core of the blockchain is a distributed digital ledger that can store any type of data, including cryptocurrency transactions, NFT ownership, and Defi smart contracts.

What is blockchain
Although any traditional database can store this kind of information, the blockchain is unique in its complete decentralization. Compared with a system maintained by a central administrator (such as an Excel spreadsheet or a bank database) in a central organization, many identical copies of the blockchain database are stored on multiple computers distributed in the network, and these individual computers are called Is the node.
How does the blockchain work?
The name “blockchain” is not a whim. The digital ledger is usually described as a “chain” composed of a single “data block”. When new data is added to the network, a new “block” is created and appended to the “chain”, which involves all nodes updating the version of their blockchain ledger to make it the same.
How to create these new blocks is the key to why the blockchain is considered to be highly secure. Before adding new blocks to the ledger, most nodes must verify and confirm the legitimacy of the new data. For cryptocurrencies, they may involve ensuring that a new transaction in a block is not fraudulent, or ensuring that the coin is not used more than once. This is different from an independent database or spreadsheet where anyone can make changes without supervision.
C. Neil Gray, the partner of Duane Morris LLP’s financial technology business unit, said: “Once a consensus is reached, the block will be added to the chain and the transaction will be recorded in the distributed ledger. The blocks are securely connected, Form a secure digital chain from the creation of the ledger to the present.”
Transactions usually use encryption technology for security protection, which means that nodes need to solve complex mathematical equations to process transactions.
Sarah Shtylman, a fintech and blockchain consultant at Perkins Coie, pointed out that “as a reward for their efforts in verifying changes to shared data, nodes usually receive a new amount of local currency in the blockchain, for example, the Bitcoin blockchain New Bitcoin on the Internet”
Blockchains are often divided into public chains and private chains. In public blockchains, anyone can participate, which means that they can read, write or audit data on the blockchain. It is worth noting that Without the authority of a control node, it is difficult to change the transactions recorded in the public blockchain.
At the same time, the private blockchain is controlled by an organization or group, and only it can decide who is invited to the system, and it has the right to modify the blockchain. In addition to being scattered on multiple nodes to increase security, this private chain is more similar to an internal data storage system.

How is the blockchain used?
Blockchain technology is used for many different purposes, from providing financial services to managing voting systems.
1. Cryptocurrency
The most common use of blockchain today is as the core of cryptocurrencies, such as Bitcoin or Ethereum. When people buy, exchange or use cryptocurrency, the transaction is recorded on the blockchain. The more people use cryptocurrency, the more widespread the blockchain will become.
Patrick Daughty, the senior partner of Foley & Lardner and head of the blockchain task force, pointed out that “due to the instability of cryptocurrencies, they have not been used in large quantities to purchase goods and services. Retail customers widely provide digital asset services, and this situation is changing.”
2. Banking
In addition to cryptocurrency, blockchain is also used to process transactions in fiat currencies such as the U.S. dollar and euro. This may be faster than sending money through a bank or other financial institution because these transactions can be verified and processed faster outside of normal office hours.
3. Asset transfer
Blockchain can also be used to record and transfer the ownership of different assets, such as the currently very popular NFT as a representative of the ownership of digital art and video.
However, blockchain can also be used to handle the ownership of real assets, such as real estate and vehicle deeds. Both parties of one party first use the blockchain to verify that one party owns the property and the other party has the money to buy it, and then they can complete and record the sale on the blockchain.
Through this process, they can transfer the property contract without manually submitting documents to update the records of the local county government, which will be updated instantly in the blockchain.
4. Smart contract
Another important direction of blockchain innovation is to automatically execute contracts, usually called “smart contracts.” Once the conditions are met, these digital contracts will automatically take effect. For example, once the buyer and seller meet all the specific parameters of the transaction, the payment for the goods can be executed immediately.
Gray pointed out: “We see the huge potential in the field of smart contracts, using blockchain technology and coding instructions to automate legal contracts.” Smart legal contracts correctly coded on distributed ledgers can minimize or eliminate the external need for a third party to verify performance.
5. Supply chain monitoring
The supply chain involves a lot of information, especially when goods are transported from one place in the world to another. With traditional data storage methods, it is difficult to find the source of the problem, such as where the supplier’s inferior goods come from. Storing this information on the blockchain will make it easier to follow and monitor the supply chain, such as IBM’s FoodTrust, which uses blockchain technology to track the entire process of food from harvest to consumption.
6. Voting
Experts are studying how to use blockchain to prevent fraud in voting. In theory, blockchain voting will allow people to submit votes that cannot be tampered with, and it can also eliminate the need for people to manually collect and verify paper votes.

Advantages of blockchain
1. Higher transaction accuracy
Because transactions in the blockchain must be verified by multiple nodes to reduce errors, if one node makes an error in the database, other nodes will see the difference and capture the error.
On the contrary, in a traditional database, if someone makes a mistake, it may be easier to pass. In addition, each asset is individually identified and tracked on the blockchain ledger, so it is impossible to pay it twice. One person overdrafts the bank account and spends a sum of money twice in the block It cannot be established in the chain field.
2. No intermediary required
Using blockchain technology, both parties in a transaction can complete the transaction without going through a third party, which saves time and costs to intermediaries such as banks.
Shtylman pointed out: “Blockchain technology has the ability to bring higher efficiency to all digital businesses, and enhance the financial capabilities of the population in areas where there are no banks or under-banked areas in the world, thereby providing power for a new generation of Internet applications.”
3. Extra safety
In theory, decentralized networks, such as blockchain, make it almost impossible for people to conduct fraudulent transactions. Forging transactions will require hacking every node and changing every ledger. Although this is not necessarily impossible, many cryptocurrency blockchain systems use PoS consensus mechanism or PoW consensus mechanism transaction verification methods, which makes it difficult to increase fraudulent transactions, and does not meet the maximum of participants. interest.
4. More effective transfer
Thanks to the round-the-clock operation of the blockchain, people can carry out financial and asset transfers more effectively, especially internationally. They do not need to wait for several days, do not need banks or government agencies to solve all problems manually.

Disadvantages of blockchain technology
1. The limit of processing transactions per second
Considering that blockchain technology relies on a larger network to approve transactions, its moving speed is limited. For example, Bitcoin can only process 4.6 transactions per second, while Visa can process 1,700 transactions per second. In addition, more and more transactions will cause network speed problems. Before that, scalability was a challenge.
2. High energy costs
Having all nodes working to verify transactions consumes more power than a single database or spreadsheet. This not only makes blockchain-based transactions more expensive but also creates a huge carbon burden on the environment.
Because of this, some industry leaders have begun to abandon certain blockchain technologies, such as Bitcoin. Elon Musk recently stated that Tesla will stop accepting Bitcoin as a means of payment, partly because he is worried about Bitcoin’s environmental damage. On May 13, 2021, Elon Musk tweeted that the energy usage trends in the past few months have been crazy.
3. Risk of asset loss
Some digital assets are protected by encryption keys, such as encrypted currencies in blockchain wallets. Users need to keep this key carefully.
Gray said: “If the owner of a digital asset loses the private cryptographic key that allows them to access the asset, there is currently no way to recover it. The asset has disappeared forever.” Because the system is decentralized, you cannot call The central institution like the bank requested a re-visit.
4. Potential illegal activities
The decentralization of blockchain adds more privacy and confidentiality, which unfortunately makes it attractive to criminals. It is more difficult to track illegal transactions on the blockchain than through bank transactions linked to names.

How to invest in blockchain?
In fact, you cannot invest in the blockchain itself, because it is just a system for storing and processing transactions. However, you can use this technology to invest in assets and companies.
Gray said: “The easiest way is to configure cryptocurrencies, such as Bitcoin, Ethereum, and other tokens running on the blockchain.”

Another option is to use this technology to invest in blockchain companies. For example, Santander Bank is experimenting with blockchain-based financial products. If you are interested in getting access to blockchain technology in your portfolio, you can buy some shares.
To take a more diversified approach, you can buy an exchange-traded fund (ETF) that invests in blockchain assets and related companies. For example, Amplify Transformational Data Sharing ETF (BLOK), which invests at least 80% of its assets in blockchain companies.
Dilemma
Despite the bright future of blockchain, it is still a niche technology. Gray believes that blockchain may be used in more situations, but it depends on future government policies. “It remains to be seen when and whether regulatory agencies such as the US Securities and Exchange Commission will act. But one thing we can be sure of is that our goal is to protect the market and investors.
Shtylman compares the current development of the blockchain to the early stages of the Internet. “It took us 15 years to see the first version of Google and more than 20 versions of Facebook. It is difficult for us to predict how far blockchain technology will develop in the next 10 or 15 years, but just like the Internet, It will significantly change the way we trade and interact in the future.”
Difficulties remain, especially in terms of transaction restrictions and energy costs, but for investors who see the potential of this technology, blockchain-based investments are worth bets.
The original report comes from David Rodeck and John Schmidt. David Rodeck is a financial writer in Delaware, specializing in investment, insurance, and optimizing retirement plans. John Schmidt is a Forbes consultant and assistant editor of “Investment and Retirement” magazine. The Chinese version is compiled and compiled by the chain market team, and the English copyright belongs to the original author. For a Chinese reprint, please contact the compiler.

Follow us on Facebook for updates and exclusive content! Click here: Each Techy
July 4, 2024
What is the use of blockchain technology?
What is the use of blockchain technology actually has very broad application prospects?
Blockchain technology is a core innovative database technology used by almost all cryptocurrencies. By distributing the same database copy throughout the network, it is very difficult for hackers to crack or deceive the system. Although cryptocurrency is currently one of the most popular blockchain applications, in fact, the technology has the potential to provide services for a very wide range of applications.
What is blockchain?
The core of the blockchain is a distributed digital ledger that can store any type of data, including cryptocurrency transactions, NFT ownership, and Defi smart contracts.

What is blockchain
Although any traditional database can store this kind of information, the blockchain is unique in its complete decentralization. Compared with a system maintained by a central administrator (such as an Excel spreadsheet or a bank database) in a central organization, many identical copies of the blockchain database are stored on multiple computers distributed in the network, and these individual computers are called Is the node.
How does the blockchain work?
The name “blockchain” is not a whim. The digital ledger is usually described as a “chain” composed of a single “data block”. When new data is added to the network, a new “block” is created and appended to the “chain”, which involves all nodes updating the version of their blockchain ledger to make it the same.
How to create these new blocks is the key to why the blockchain is considered to be highly secure. Before adding new blocks to the ledger, most nodes must verify and confirm the legitimacy of the new data. For cryptocurrencies, they may involve ensuring that a new transaction in a block is not fraudulent, or ensuring that the coin is not used more than once. This is different from an independent database or spreadsheet where anyone can make changes without supervision.
C. Neil Gray, the partner of Duane Morris LLP’s financial technology business unit, said: “Once a consensus is reached, the block will be added to the chain and the transaction will be recorded in the distributed ledger. The blocks are securely connected, Form a secure digital chain from the creation of the ledger to the present.”
Transactions usually use encryption technology for security protection, which means that nodes need to solve complex mathematical equations to process transactions.
Sarah Shtylman, a fintech and blockchain consultant at Perkins Coie, pointed out that “as a reward for their efforts in verifying changes to shared data, nodes usually receive a new amount of local currency in the blockchain, for example, the Bitcoin blockchain New Bitcoin on the Internet”
Blockchains are often divided into public chains and private chains. In public blockchains, anyone can participate, which means that they can read, write or audit data on the blockchain. It is worth noting that Without the authority of a control node, it is difficult to change the transactions recorded in the public blockchain.
At the same time, the private blockchain is controlled by an organization or group, and only it can decide who is invited to the system, and it has the right to modify the blockchain. In addition to being scattered on multiple nodes to increase security, this private chain is more similar to an internal data storage system.

How is the blockchain used?
Blockchain technology is used for many different purposes, from providing financial services to managing voting systems.
1. Cryptocurrency
The most common use of blockchain today is as the core of cryptocurrencies, such as Bitcoin or Ethereum. When people buy, exchange or use cryptocurrency, the transaction is recorded on the blockchain. The more people use cryptocurrency, the more widespread the blockchain will become.
Patrick Daughty, the senior partner of Foley & Lardner and head of the blockchain task force, pointed out that “due to the instability of cryptocurrencies, they have not been used in large quantities to purchase goods and services. Retail customers widely provide digital asset services, and this situation is changing.”
2. Banking
In addition to cryptocurrency, blockchain is also used to process transactions in fiat currencies such as the U.S. dollar and euro. This may be faster than sending money through a bank or other financial institution because these transactions can be verified and processed faster outside of normal office hours.
3. Asset transfer
Blockchain can also be used to record and transfer the ownership of different assets, such as the currently very popular NFT as a representative of the ownership of digital art and video.
However, blockchain can also be used to handle the ownership of real assets, such as real estate and vehicle deeds. Both parties of one party first use the blockchain to verify that one party owns the property and the other party has the money to buy it, and then they can complete and record the sale on the blockchain.
Through this process, they can transfer the property contract without manually submitting documents to update the records of the local county government, which will be updated instantly in the blockchain.
4. Smart contract
Another important direction of blockchain innovation is to automatically execute contracts, usually called “smart contracts.” Once the conditions are met, these digital contracts will automatically take effect. For example, once the buyer and seller meet all the specific parameters of the transaction, the payment for the goods can be executed immediately.
Gray pointed out: “We see the huge potential in the field of smart contracts, using blockchain technology and coding instructions to automate legal contracts.” Smart legal contracts correctly coded on distributed ledgers can minimize or eliminate the external need for a third party to verify performance.
5. Supply chain monitoring
The supply chain involves a lot of information, especially when goods are transported from one place in the world to another. With traditional data storage methods, it is difficult to find the source of the problem, such as where the supplier’s inferior goods come from. Storing this information on the blockchain will make it easier to follow and monitor the supply chain, such as IBM’s FoodTrust, which uses blockchain technology to track the entire process of food from harvest to consumption.
6. Voting
Experts are studying how to use blockchain to prevent fraud in voting. In theory, blockchain voting will allow people to submit votes that cannot be tampered with, and it can also eliminate the need for people to manually collect and verify paper votes.

Advantages of blockchain
1. Higher transaction accuracy
Because transactions in the blockchain must be verified by multiple nodes to reduce errors, if one node makes an error in the database, other nodes will see the difference and capture the error.
On the contrary, in a traditional database, if someone makes a mistake, it may be easier to pass. In addition, each asset is individually identified and tracked on the blockchain ledger, so it is impossible to pay it twice. One person overdrafts the bank account and spends a sum of money twice in the block It cannot be established in the chain field.
2. No intermediary required
Using blockchain technology, both parties in a transaction can complete the transaction without going through a third party, which saves time and costs to intermediaries such as banks.
Shtylman pointed out: “Blockchain technology has the ability to bring higher efficiency to all digital businesses, and enhance the financial capabilities of the population in areas where there are no banks or under-banked areas in the world, thereby providing power for a new generation of Internet applications.”
3. Extra safety
In theory, decentralized networks, such as blockchain, make it almost impossible for people to conduct fraudulent transactions. Forging transactions will require hacking every node and changing every ledger. Although this is not necessarily impossible, many cryptocurrency blockchain systems use PoS consensus mechanism or PoW consensus mechanism transaction verification methods, which makes it difficult to increase fraudulent transactions, and does not meet the maximum of participants. interest.
4. More effective transfer
Thanks to the round-the-clock operation of the blockchain, people can carry out financial and asset transfers more effectively, especially internationally. They do not need to wait for several days, do not need banks or government agencies to solve all problems manually.

Disadvantages of blockchain technology
1. The limit of processing transactions per second
Considering that blockchain technology relies on a larger network to approve transactions, its moving speed is limited. For example, Bitcoin can only process 4.6 transactions per second, while Visa can process 1,700 transactions per second. In addition, more and more transactions will cause network speed problems. Before that, scalability was a challenge.
2. High energy costs
Having all nodes working to verify transactions consumes more power than a single database or spreadsheet. This not only makes blockchain-based transactions more expensive but also creates a huge carbon burden on the environment.
Because of this, some industry leaders have begun to abandon certain blockchain technologies, such as Bitcoin. Elon Musk recently stated that Tesla will stop accepting Bitcoin as a means of payment, partly because he is worried about Bitcoin’s environmental damage. On May 13, 2021, Elon Musk tweeted that the energy usage trends in the past few months have been crazy.
3. Risk of asset loss
Some digital assets are protected by encryption keys, such as encrypted currencies in blockchain wallets. Users need to keep this key carefully.
Gray said: “If the owner of a digital asset loses the private cryptographic key that allows them to access the asset, there is currently no way to recover it. The asset has disappeared forever.” Because the system is decentralized, you cannot call The central institution like the bank requested a re-visit.
4. Potential illegal activities
The decentralization of blockchain adds more privacy and confidentiality, which unfortunately makes it attractive to criminals. It is more difficult to track illegal transactions on the blockchain than through bank transactions linked to names.

How to invest in blockchain?
In fact, you cannot invest in the blockchain itself, because it is just a system for storing and processing transactions. However, you can use this technology to invest in assets and companies.
Gray said: “The easiest way is to configure cryptocurrencies, such as Bitcoin, Ethereum, and other tokens running on the blockchain.”

Another option is to use this technology to invest in blockchain companies. For example, Santander Bank is experimenting with blockchain-based financial products. If you are interested in getting access to blockchain technology in your portfolio, you can buy some shares.
To take a more diversified approach, you can buy an exchange-traded fund (ETF) that invests in blockchain assets and related companies. For example, Amplify Transformational Data Sharing ETF (BLOK), which invests at least 80% of its assets in blockchain companies.
Dilemma
Despite the bright future of blockchain, it is still a niche technology. Gray believes that blockchain may be used in more situations, but it depends on future government policies. “It remains to be seen when and whether regulatory agencies such as the US Securities and Exchange Commission will act. But one thing we can be sure of is that our goal is to protect the market and investors.
Shtylman compares the current development of the blockchain to the early stages of the Internet. “It took us 15 years to see the first version of Google and more than 20 versions of Facebook. It is difficult for us to predict how far blockchain technology will develop in the next 10 or 15 years, but just like the Internet, It will significantly change the way we trade and interact in the future.”
Difficulties remain, especially in terms of transaction restrictions and energy costs, but for investors who see the potential of this technology, blockchain-based investments are worth bets.
The original report comes from David Rodeck and John Schmidt. David Rodeck is a financial writer in Delaware, specializing in investment, insurance, and optimizing retirement plans. John Schmidt is a Forbes consultant and assistant editor of “Investment and Retirement” magazine. The Chinese version is compiled and compiled by the chain market team, and the English copyright belongs to the original author. For a Chinese reprint, please contact the compiler.

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July 4, 2024
What is agritech, which is responsible for the future of agriculture? Explaining the background and merits of attention
There are concerns about the decline of domestic agriculture due to an aging population and a lack of successors, and agritech which combines agriculture and technology, is attracting attention as a means to solve this problem.
Agritech is being used around the world to successfully improve agricultural efficiency and increase production. In this article, we will introduce agritech and the initiatives of each company, so let’s deepen our understanding so that we can stay up to date with the times.

What is “agritech” that combines agriculture and technology?
Here, we will introduce what agritech is, which combines agriculture and technology, which is attracting attention.
Differences with smart agriculture
“Agritech” refers to technology that promotes IT in agriculture using ICT technologies such as AI, big data, and IoT , and is a coined word that combines agriculture (agriculture) and technology (technology). . Agritech is a term mainly used overseas; in Japan, it is synonymously referred to as high-tech agriculture or smart agriculture.
Domestic market size
The domestic agritech market size is expanding year by year, and according to the Fuji Keizai Group, the market size in 2018 was 69.8 billion yen, and is expected to exceed 100 billion yen in 2030.
Since it is a relatively new market, there are few barriers to entry, and not only large companies but also start-up companies and venture companies are participating, so it can be said that it is a promising industry with a bright future.
Reasons why agritech is attracting attention in Japan and social issues
One of the reasons why agritech is attracting attention in Japan is that Japan’s food self-sufficiency rate is low. Japan’s food self-sufficiency rate in 2020 was low at 37%, and it is clear that Japan relies on imports from overseas. As a result, there is no guarantee that we will be able to continue to secure a stable supply of food, as we are greatly affected by the situation and trade relations in importing countries.
There are also challenges in the environment surrounding domestic agriculture. The aging of farmers and the lack of successors are also a problem, but if techniques are not passed on, there is a possibility that Japan’s agricultural technology will continue to decline. As a result, the introduction of agritech in Japan has begun little by little.
Agritech’s main initiatives
We will introduce the main initiatives related to agritech, which is attracting attention not only in Japan but also around the world.
Spraying pesticides by drone
By using small agricultural drones to spray pesticides from the sky, you can improve the efficiency of agricultural work. Previously, pesticides were manually sprayed using machines, but by operating a drone and automatically spraying pesticides, it is now possible to spread pesticides over a wide area in a short period of time. At the startup company BioC ar bon Engineering, one person operated six drones at the same time and successfully planted mangroves in Myanmar.
Monitoring and management using IoT devices
Using IoT devices, it is possible to monitor and manage livestock and crops.
For example, by monitoring the daily behavior of livestock using AI cameras, it is possible to notice minute changes in physical condition and provide the necessary care in a timely manner. Similarly, for agricultural products, there is a function that automatically notifies you of the harvest time based on the growth status, and a function that links environmental information such as temperature, humidity, and sunlight hours with harvest results, and proposes the optimal growing method according to the situation. It can also be applied to other functions.
Unified supply chain management using blockchain
Through quality control using blockchain technology, we can centralize supply chain management and provide safe and secure agricultural products. Today’s supply chains are becoming more diverse and complex, and ensuring traceability to prove the safety of agricultural products is an issue.
Therefore, blockchain technology used for crypto assets such as Bitcoin is attracting attention. In blockchain technology, each block is linked by a chain, making it difficult to tamper with the data, making it possible to prove the transparency of agricultural products.
Big data analysis
By performing big data analysis using AI, it is possible to quantify the invisible know-how of experts. This makes it possible to grasp the harvest timing based on the growth status of crops and to take appropriate measures against pests, which can be used to pass down techniques to successors.
Advantages of introducing agritech
The introduction of agritech has the potential to transform agriculture, which until now had a strong analog image, into a high-tech industry, and to greatly improve the way people work. Here, we will introduce the benefits of introducing agritech.
Improving agricultural efficiency and increasing production
One of the benefits of introducing agritech is improving the efficiency of agricultural work and increasing production. The reason is that with the introduction of agritech, agricultural tasks that were previously done manually, such as sowing seeds, spraying pesticides, and harvesting, can be performed by drones and robots, making it possible to perform a wide range of tasks in a short period of time.
Furthermore, by using the free time gained from this process to improve varieties, it has the potential to lead to the creation of new varieties.
Facilitation of new entry through digitalization
By introducing agritech and visualizing the know-how of experienced workers as data using AI, it is possible to create an environment that is easy for new entrants, such as young people who want to start farming, to enter the industry.
The know-how of experts is often passed on orally or through actual experience, and there is no guarantee that the know-how will be accurately transmitted. Furthermore, as the population continues to age, it is unlikely that people will be able to continue working until they have inherited all of their skills, so it is important to reduce the barriers to new entry by converting know-how into data using AI. .
Reduction of working hours and burden
One of the reasons why the number of farmers is decreasing is that there is an established image that farming is difficult due to various factors such as physical strength and weather. Therefore, by using agritech to have drones and robots perform agricultural work on behalf of farmers, it is possible to reduce labor hours and reduce the burden. One of the appeals of this is that you can use the free time you get to work on a side job or use it on your days off, giving you freedom in how you work.
Realizing new ways of working
Agriculture has an established image of hard labor, long hours, no days off, and demanding farm work, but by introducing agritech, it is possible to realize new ways of working that have never existed before.
Using IoT, it is possible to remotely monitor crops, and it is also possible to know the growth status of crops and the timing of harvest even when you are away from home. If this happens, you won’t have to visit the site every day.
Disadvantages of introducing agritech
So far, we have introduced the benefits of introducing Agritech, but when considering implementing Agritech, it is important to understand the disadvantages as well.
Initial cost is high
One of the disadvantages is the high initial cost of installing drones, robots, and monitoring systems.
However, if you take a long-term view, you can expect significant improvements in work efficiency and increased production, so considering it as an initial investment, it cannot be said to be a disadvantage. Please make a medium- to long-term plan and consider implementing it in order to receive these benefits.
Difficulties in securing and training skilled human resources
Agritech uses AI and IoT to improve agriculture, but users are also required to have knowledge and understanding of AI and IoT.
The difficulty of securing and training human resources with skills related to these ICT technologies is an issue, and agricultural machinery manufacturers and ICT vendors are working to develop products that are easy to use even without special skills.
Lack of compatibility with software, etc.
Since agritech uses relatively new technology, there is a problem with poor compatibility of software between devices.
Even if you try to link devices from different manufacturers, they may not be able to work together because the interface specifications for exchanging data are different. In the future, this problem may be resolved as standards are developed, but it will not be resolved overnight, and I think it will take some time.

Companies and organizations that utilize domestic agritech
Here we will introduce companies and organizations that utilize agritech in Japan.
Agricultural data sharing demonstration project implemented in Niigata City, Niigata Prefecture
Niigata City is working to improve the efficiency of agricultural work and change the image of agriculture by using agritech.
Implementing agritech has been a challenge, such as high initial costs and the need for special skills. For this reason, Niigata City is implementing an agricultural data sharing demonstration project. By sharing agricultural data among multiple farmers, we have succeeded in improving productivity and production volume through data-based management decisions.
“Yanmar” utilizes in-house developed agricultural machinery
Yanmar Holdings Co., Ltd. is developing its own agricultural robot called Agrobot. As of November 2022, this has not yet been realized, but our goal is to develop a robot that can automatically perform tasks tailored to the local environment.
However, there are some robots that are already in practical use. A robot tractor is an agricultural robot that can automatically turn and work automatically by operating a tablet remotely. Agrobots aiming for complete automation may also become a reality in the near future.
“Midori Cloud” provides field monitoring system
Midori Cloud uses IT to measure and record the field environment and work, and converts it into data, making it possible to accumulate experience and share know-how by visualizing agricultural work.
Farmers’ sense and experience are important in agriculture, which requires dealing with an uncertain environment. At Midori Cloud, by visualizing this using IT, we have been able to improve the efficiency of agricultural work and increase production.
AGRI SMILE’s business goal is to pass on agriculture to the next generation
With AGRI SMILE’s service, by centrally managing and evaluating cultivation data, you can utilize the feedback for your next cultivation. We are also developing a service that allows cultivation techniques to be shared as VR videos, making it possible to pass them on to the next generation.

Companies and organizations that utilize overseas agritech
Agritech is attracting attention not only in Japan but also overseas. Here we will introduce companies and organizations that utilize agritech overseas.
Growing tomatoes in seawater “Sundrop Farm (Australia)”
South Australia has dry land that stretches all the way to the coast under harsh sunlight. Sundrop Farm was created by focusing on an environment where large quantities of seawater, which is unsuitable for agriculture, can be secured.
By distilling seawater using solar energy collected using specular reflection, we succeeded in securing a large amount of fresh water. We use this fresh water to grow tomatoes.
Agrobot (Spain) develops a harvesting robot
Agrobot is a company based in Spain that develops “strawberry harvesting robots”. Using a sensor at the tip of the robot, it not only determines when to harvest strawberries based on their ripeness, but also automatically harvests the strawberries.
In-house crop management and hydroponic cultivation “Plenty (USA)”
Plenty is a company that specializes in hydroponic cultivation, and grows kale and lettuce in-house. By managing crop data and controlling the amount of water and minerals, it is possible to adjust the flavor. Another feature is that the amount of water required for cultivation is about 1/20 of that of regular outdoor cultivation, contributing to water conservation.

The future of agritech
The future of agritech, which is expanding its market size, is bright as a savior for domestic agriculture, which is facing concerns about accelerating decline in agriculture due to the aging population and lack of successors.
Efforts to utilize agritech are becoming more popular not only in Japan but also overseas, and it will not be long before we see fully automated robots doing farming in place of farmers. The industry is in a period of growth, so let’s keep an eye on future trends.

Summary
So far, we have introduced agritech. In Japan, it is often referred to as smart agriculture, and although it is a technology that is attracting a lot of attention around the world, I think that few people understand it accurately.
Through this article, let’s deepen our understanding of agritech and pay attention to trends in agritech that are likely to attract more and more attention in the future.

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July 2, 2024
What is agritech, which is responsible for the future of agriculture? Explaining the background and merits of attention
There are concerns about the decline of domestic agriculture due to an aging population and a lack of successors, and agritech which combines agriculture and technology, is attracting attention as a means to solve this problem.
Agritech is being used around the world to successfully improve agricultural efficiency and increase production. In this article, we will introduce agritech and the initiatives of each company, so let’s deepen our understanding so that we can stay up to date with the times.

What is “agritech” that combines agriculture and technology?
Here, we will introduce what agritech is, which combines agriculture and technology, which is attracting attention.
Differences with smart agriculture
“Agritech” refers to technology that promotes IT in agriculture using ICT technologies such as AI, big data, and IoT , and is a coined word that combines agriculture (agriculture) and technology (technology). . Agritech is a term mainly used overseas; in Japan, it is synonymously referred to as high-tech agriculture or smart agriculture.
Domestic market size
The domestic agritech market size is expanding year by year, and according to the Fuji Keizai Group, the market size in 2018 was 69.8 billion yen, and is expected to exceed 100 billion yen in 2030.
Since it is a relatively new market, there are few barriers to entry, and not only large companies but also start-up companies and venture companies are participating, so it can be said that it is a promising industry with a bright future.
Reasons why agritech is attracting attention in Japan and social issues
One of the reasons why agritech is attracting attention in Japan is that Japan’s food self-sufficiency rate is low. Japan’s food self-sufficiency rate in 2020 was low at 37%, and it is clear that Japan relies on imports from overseas. As a result, there is no guarantee that we will be able to continue to secure a stable supply of food, as we are greatly affected by the situation and trade relations in importing countries.
There are also challenges in the environment surrounding domestic agriculture. The aging of farmers and the lack of successors are also a problem, but if techniques are not passed on, there is a possibility that Japan’s agricultural technology will continue to decline. As a result, the introduction of agritech in Japan has begun little by little.
Agritech’s main initiatives
We will introduce the main initiatives related to agritech, which is attracting attention not only in Japan but also around the world.
Spraying pesticides by drone
By using small agricultural drones to spray pesticides from the sky, you can improve the efficiency of agricultural work. Previously, pesticides were manually sprayed using machines, but by operating a drone and automatically spraying pesticides, it is now possible to spread pesticides over a wide area in a short period of time. At the startup company BioC ar bon Engineering, one person operated six drones at the same time and successfully planted mangroves in Myanmar.
Monitoring and management using IoT devices
Using IoT devices, it is possible to monitor and manage livestock and crops.
For example, by monitoring the daily behavior of livestock using AI cameras, it is possible to notice minute changes in physical condition and provide the necessary care in a timely manner. Similarly, for agricultural products, there is a function that automatically notifies you of the harvest time based on the growth status, and a function that links environmental information such as temperature, humidity, and sunlight hours with harvest results, and proposes the optimal growing method according to the situation. It can also be applied to other functions.
Unified supply chain management using blockchain
Through quality control using blockchain technology, we can centralize supply chain management and provide safe and secure agricultural products. Today’s supply chains are becoming more diverse and complex, and ensuring traceability to prove the safety of agricultural products is an issue.
Therefore, blockchain technology used for crypto assets such as Bitcoin is attracting attention. In blockchain technology, each block is linked by a chain, making it difficult to tamper with the data, making it possible to prove the transparency of agricultural products.
Big data analysis
By performing big data analysis using AI, it is possible to quantify the invisible know-how of experts. This makes it possible to grasp the harvest timing based on the growth status of crops and to take appropriate measures against pests, which can be used to pass down techniques to successors.
Advantages of introducing agritech
The introduction of agritech has the potential to transform agriculture, which until now had a strong analog image, into a high-tech industry, and to greatly improve the way people work. Here, we will introduce the benefits of introducing agritech.
Improving agricultural efficiency and increasing production
One of the benefits of introducing agritech is improving the efficiency of agricultural work and increasing production. The reason is that with the introduction of agritech, agricultural tasks that were previously done manually, such as sowing seeds, spraying pesticides, and harvesting, can be performed by drones and robots, making it possible to perform a wide range of tasks in a short period of time.
Furthermore, by using the free time gained from this process to improve varieties, it has the potential to lead to the creation of new varieties.
Facilitation of new entry through digitalization
By introducing agritech and visualizing the know-how of experienced workers as data using AI, it is possible to create an environment that is easy for new entrants, such as young people who want to start farming, to enter the industry.
The know-how of experts is often passed on orally or through actual experience, and there is no guarantee that the know-how will be accurately transmitted. Furthermore, as the population continues to age, it is unlikely that people will be able to continue working until they have inherited all of their skills, so it is important to reduce the barriers to new entry by converting know-how into data using AI. .
Reduction of working hours and burden
One of the reasons why the number of farmers is decreasing is that there is an established image that farming is difficult due to various factors such as physical strength and weather. Therefore, by using agritech to have drones and robots perform agricultural work on behalf of farmers, it is possible to reduce labor hours and reduce the burden. One of the appeals of this is that you can use the free time you get to work on a side job or use it on your days off, giving you freedom in how you work.
Realizing new ways of working
Agriculture has an established image of hard labor, long hours, no days off, and demanding farm work, but by introducing agritech, it is possible to realize new ways of working that have never existed before.
Using IoT, it is possible to remotely monitor crops, and it is also possible to know the growth status of crops and the timing of harvest even when you are away from home. If this happens, you won’t have to visit the site every day.
Disadvantages of introducing agritech
So far, we have introduced the benefits of introducing Agritech, but when considering implementing Agritech, it is important to understand the disadvantages as well.
Initial cost is high
One of the disadvantages is the high initial cost of installing drones, robots, and monitoring systems.
However, if you take a long-term view, you can expect significant improvements in work efficiency and increased production, so considering it as an initial investment, it cannot be said to be a disadvantage. Please make a medium- to long-term plan and consider implementing it in order to receive these benefits.
Difficulties in securing and training skilled human resources
Agritech uses AI and IoT to improve agriculture, but users are also required to have knowledge and understanding of AI and IoT.
The difficulty of securing and training human resources with skills related to these ICT technologies is an issue, and agricultural machinery manufacturers and ICT vendors are working to develop products that are easy to use even without special skills.
Lack of compatibility with software, etc.
Since agritech uses relatively new technology, there is a problem with poor compatibility of software between devices.
Even if you try to link devices from different manufacturers, they may not be able to work together because the interface specifications for exchanging data are different. In the future, this problem may be resolved as standards are developed, but it will not be resolved overnight, and I think it will take some time.

Companies and organizations that utilize domestic agritech
Here we will introduce companies and organizations that utilize agritech in Japan.
Agricultural data sharing demonstration project implemented in Niigata City, Niigata Prefecture
Niigata City is working to improve the efficiency of agricultural work and change the image of agriculture by using agritech.
Implementing agritech has been a challenge, such as high initial costs and the need for special skills. For this reason, Niigata City is implementing an agricultural data sharing demonstration project. By sharing agricultural data among multiple farmers, we have succeeded in improving productivity and production volume through data-based management decisions.
“Yanmar” utilizes in-house developed agricultural machinery
Yanmar Holdings Co., Ltd. is developing its own agricultural robot called Agrobot. As of November 2022, this has not yet been realized, but our goal is to develop a robot that can automatically perform tasks tailored to the local environment.
However, there are some robots that are already in practical use. A robot tractor is an agricultural robot that can automatically turn and work automatically by operating a tablet remotely. Agrobots aiming for complete automation may also become a reality in the near future.
“Midori Cloud” provides field monitoring system
Midori Cloud uses IT to measure and record the field environment and work, and converts it into data, making it possible to accumulate experience and share know-how by visualizing agricultural work.
Farmers’ sense and experience are important in agriculture, which requires dealing with an uncertain environment. At Midori Cloud, by visualizing this using IT, we have been able to improve the efficiency of agricultural work and increase production.
AGRI SMILE’s business goal is to pass on agriculture to the next generation
With AGRI SMILE’s service, by centrally managing and evaluating cultivation data, you can utilize the feedback for your next cultivation. We are also developing a service that allows cultivation techniques to be shared as VR videos, making it possible to pass them on to the next generation.

Companies and organizations that utilize overseas agritech
Agritech is attracting attention not only in Japan but also overseas. Here we will introduce companies and organizations that utilize agritech overseas.
Growing tomatoes in seawater “Sundrop Farm (Australia)”
South Australia has dry land that stretches all the way to the coast under harsh sunlight. Sundrop Farm was created by focusing on an environment where large quantities of seawater, which is unsuitable for agriculture, can be secured.
By distilling seawater using solar energy collected using specular reflection, we succeeded in securing a large amount of fresh water. We use this fresh water to grow tomatoes.
Agrobot (Spain) develops a harvesting robot
Agrobot is a company based in Spain that develops “strawberry harvesting robots”. Using a sensor at the tip of the robot, it not only determines when to harvest strawberries based on their ripeness, but also automatically harvests the strawberries.
In-house crop management and hydroponic cultivation “Plenty (USA)”
Plenty is a company that specializes in hydroponic cultivation, and grows kale and lettuce in-house. By managing crop data and controlling the amount of water and minerals, it is possible to adjust the flavor. Another feature is that the amount of water required for cultivation is about 1/20 of that of regular outdoor cultivation, contributing to water conservation.

The future of agritech
The future of agritech, which is expanding its market size, is bright as a savior for domestic agriculture, which is facing concerns about accelerating decline in agriculture due to the aging population and lack of successors.
Efforts to utilize agritech are becoming more popular not only in Japan but also overseas, and it will not be long before we see fully automated robots doing farming in place of farmers. The industry is in a period of growth, so let’s keep an eye on future trends.

Summary
So far, we have introduced agritech. In Japan, it is often referred to as smart agriculture, and although it is a technology that is attracting a lot of attention around the world, I think that few people understand it accurately.
Through this article, let’s deepen our understanding of agritech and pay attention to trends in agritech that are likely to attract more and more attention in the future.

Follow us on Facebook for updates and exclusive content! Click here: Each Techy
July 2, 2024
How blockchain will change the world by creating a machine of trust?
A blockchain is a machine that creates trust”, and emphasizes that “the extension of the meaning carried by the technological innovation of blockchain goes far beyond the cryptocurrency itself”.
“Block A chain is a machine that creates trust” and emphasizes that “the extension of the meaning carried by the technological innovation of the blockchain goes far beyond the cryptocurrency itself.”
To put it simply, blockchain enables people to cooperate with each other without trusting each other and without the endorsement of a neutral central authority. Therefore, we can indeed regard it as a machine that creates trust. But how does this “trust machine” change the world?
The “trust issue” has always been a crucial issue that has plagued the coordinated development of human society. However, this problem was not without solutions in the past.
For people or organizations that do not trust each other, if there is a need to cooperate, there are usually two modes in the past.
One is that we use the reputation system to try to trust first. If there is no problem during this period, we will accumulate reputation and we will continue to cooperate next time; if there is a problem and we do not keep our promises, then there will be no next time. This kind of trust mechanism is indeed useful in unlimited games, but once the number of games is known, problems are likely to occur. For example, we often see news about “tourist attractions slaughtering customers”. The main reason for this is actually that locals know that most people may come this time in their lives.
The other is to rely on a third party that everyone trusts, that is, the “guarantor model” or the “trusted third party model.” For example, A and B need to cooperate, but they do not trust each other, but A and B trust C, then C can act as a guarantor. If there is a transaction between A and B, if either party violates the contract, then C will pay. When we buy things on Taobao, Alipay actually plays the role of “C”. Or more directly, A and C trade directly, and C trades with B. At this time, C is called the central counterparty.
Compared with the former, the latter model does not have the problem of “non-infinite game failure”, but it is not perfect. Because in this model, everything depends on “C is reliable.” If C wants to run away or open a convenient door for himself, then the whole model will collapse.
In our current real society, the ubiquitous and operating trust mechanism is mainly the latter “trusted third-party model.” Just like, we trust WeChat Pay, essentially trusting Tencent; we deposit money in the bank, essentially trusting the bank; we believe that the stocks we buy are really stocks because we trust the state-guaranteed exchange and the legal system.
In short, the current operation of our entire society is filled with a large number of trust models of “trusted third parties”, relying on trusting individuals, companies, organizations, governments, and mutual restraints and guarantees, notarization, laws, and regulations between individuals. A series of explicit rules, unspoken rules, such as procedures, procedures, and the combination of these trust factors.
Of course, this kind of trust mechanism is considered to be well-tested and works well so far. Although there may be various flaws and loopholes in the middle, they can all be improved through the improvement of the trust factor and iteratively upgraded. For example, certain types of contracts are prone to default, and the risk can be controlled by increasing the mortgage guarantee ratio.
However, in addition to relying on third parties naturally, this trust model still has certain limitations and deficiencies in some broader issues.
Such as currency. As we all know, a human currency currently follows the latter type of trusted third-party model and is essentially a central counterparty model, so it is inevitable that the central counterparty will break the trust. For example, the fiat currency issued by the central bank tends to depreciate in the long run and is always inflated. This is actually stealing everyone’s wealth, and countless A and B who trust C have suffered losses. . This is actually the concept of “seigniorage” that we often hear.
Another example is the cooperation between some large companies, especially those involving information and data. Just like mobile phone manufacturers, they each have some blacklist information about harassing calls, but they basically do not share each other. But we know that the more complete this kind of data, the greater the value to customers. The problem is that it is difficult for everyone to find a suitable “trusted third party” to share information and data.
There are many such problems. In short, the same is true between people, enterprises, and countries.
Iis there a third model?

The original intention of this design is that no one can be trusted to play the role of “C”, and all transactions must be under everyone’s eyes. All in all, the goal of the design is to make everyone’s benefits of not cheating higher than the benefits of cheating, so as to encourage everyone not to cheat.
Bitcoin is the verifier of this model. At least for now, this experiment is still successful.
In short, blockchain technology provides a new solution model, without any artificial trust factors, a completely machine-based trust model. It replaces the role of a trusted intermediary with a machine and uses a set of mathematical algorithms to ensure that two parties who do not trust each other can still complete transactions or achieve cooperation without resorting to a third party. This also makes it possible to achieve broader social collaboration and even large-scale global production collaboration.
Just like the issue of information and data sharing between mobile phone manufacturers mentioned earlier. Everyone can create a consortium chain and make all the use of information public to all parties, so that not only do you no longer have to worry about the leakage of third-party information, but you can also avoid intrigue with each other, so as to achieve win-win cooperation.
In addition, the trust model created by the blockchain can greatly save costs compared to the traditional “trusted third party” model.
The modern economy is built on multiple levels of trust. We trust technology giants, banks, insurance companies, governments, and many more institutions every day. But as everyone knows, the cost of trust in our society is extremely high. In the case of banks, in order to allow us to trust and deposit money with confidence, they spend trillions of system maintenance costs (backstage, front desk, and facade) every year. At the same time, banks can also make trillions of dollars in profits. . However, from the perspective of users, these are actual costs. In order to save and withdraw money with ease and peace of mind, we have to spend trillions of costs every year to support the banking system.
We trust so many institutions that we take it for granted that the economy is built on multiple levels of trust, and therefore often overlook the high costs behind these trusts.
And because the blockchain can replace the role of trust intermediary with a fully mechanized trust model, it can also greatly reduce the credit cost of our entire society.
All in all, the birth of blockchain technology has provided a more exciting solution to the long-standing trust problems and information asymmetry problems in our human society. In the future, as the application of blockchain technology penetrates into all walks of life, blockchain technology will greatly reduce the transaction costs of the entire society, improve efficiency, and create a better future for us.

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June 6, 2024
How blockchain will change the world by creating a machine of trust?
A blockchain is a machine that creates trust”, and emphasizes that “the extension of the meaning carried by the technological innovation of blockchain goes far beyond the cryptocurrency itself”.
“Block A chain is a machine that creates trust” and emphasizes that “the extension of the meaning carried by the technological innovation of the blockchain goes far beyond the cryptocurrency itself.”
To put it simply, blockchain enables people to cooperate with each other without trusting each other and without the endorsement of a neutral central authority. Therefore, we can indeed regard it as a machine that creates trust. But how does this “trust machine” change the world?
The “trust issue” has always been a crucial issue that has plagued the coordinated development of human society. However, this problem was not without solutions in the past.
For people or organizations that do not trust each other, if there is a need to cooperate, there are usually two modes in the past.
One is that we use the reputation system to try to trust first. If there is no problem during this period, we will accumulate reputation and we will continue to cooperate next time; if there is a problem and we do not keep our promises, then there will be no next time. This kind of trust mechanism is indeed useful in unlimited games, but once the number of games is known, problems are likely to occur. For example, we often see news about “tourist attractions slaughtering customers”. The main reason for this is actually that locals know that most people may come this time in their lives.
The other is to rely on a third party that everyone trusts, that is, the “guarantor model” or the “trusted third party model.” For example, A and B need to cooperate, but they do not trust each other, but A and B trust C, then C can act as a guarantor. If there is a transaction between A and B, if either party violates the contract, then C will pay. When we buy things on Taobao, Alipay actually plays the role of “C”. Or more directly, A and C trade directly, and C trades with B. At this time, C is called the central counterparty.
Compared with the former, the latter model does not have the problem of “non-infinite game failure”, but it is not perfect. Because in this model, everything depends on “C is reliable.” If C wants to run away or open a convenient door for himself, then the whole model will collapse.
In our current real society, the ubiquitous and operating trust mechanism is mainly the latter “trusted third-party model.” Just like, we trust WeChat Pay, essentially trusting Tencent; we deposit money in the bank, essentially trusting the bank; we believe that the stocks we buy are really stocks because we trust the state-guaranteed exchange and the legal system.
In short, the current operation of our entire society is filled with a large number of trust models of “trusted third parties”, relying on trusting individuals, companies, organizations, governments, and mutual restraints and guarantees, notarization, laws, and regulations between individuals. A series of explicit rules, unspoken rules, such as procedures, procedures, and the combination of these trust factors.
Of course, this kind of trust mechanism is considered to be well-tested and works well so far. Although there may be various flaws and loopholes in the middle, they can all be improved through the improvement of the trust factor and iteratively upgraded. For example, certain types of contracts are prone to default, and the risk can be controlled by increasing the mortgage guarantee ratio.
However, in addition to relying on third parties naturally, this trust model still has certain limitations and deficiencies in some broader issues.
Such as currency. As we all know, a human currency currently follows the latter type of trusted third-party model and is essentially a central counterparty model, so it is inevitable that the central counterparty will break the trust. For example, the fiat currency issued by the central bank tends to depreciate in the long run and is always inflated. This is actually stealing everyone’s wealth, and countless A and B who trust C have suffered losses. . This is actually the concept of “seigniorage” that we often hear.
Another example is the cooperation between some large companies, especially those involving information and data. Just like mobile phone manufacturers, they each have some blacklist information about harassing calls, but they basically do not share each other. But we know that the more complete this kind of data, the greater the value to customers. The problem is that it is difficult for everyone to find a suitable “trusted third party” to share information and data.
There are many such problems. In short, the same is true between people, enterprises, and countries.
Iis there a third model?

The original intention of this design is that no one can be trusted to play the role of “C”, and all transactions must be under everyone’s eyes. All in all, the goal of the design is to make everyone’s benefits of not cheating higher than the benefits of cheating, so as to encourage everyone not to cheat.
Bitcoin is the verifier of this model. At least for now, this experiment is still successful.
In short, blockchain technology provides a new solution model, without any artificial trust factors, a completely machine-based trust model. It replaces the role of a trusted intermediary with a machine and uses a set of mathematical algorithms to ensure that two parties who do not trust each other can still complete transactions or achieve cooperation without resorting to a third party. This also makes it possible to achieve broader social collaboration and even large-scale global production collaboration.
Just like the issue of information and data sharing between mobile phone manufacturers mentioned earlier. Everyone can create a consortium chain and make all the use of information public to all parties, so that not only do you no longer have to worry about the leakage of third-party information, but you can also avoid intrigue with each other, so as to achieve win-win cooperation.
In addition, the trust model created by the blockchain can greatly save costs compared to the traditional “trusted third party” model.
The modern economy is built on multiple levels of trust. We trust technology giants, banks, insurance companies, governments, and many more institutions every day. But as everyone knows, the cost of trust in our society is extremely high. In the case of banks, in order to allow us to trust and deposit money with confidence, they spend trillions of system maintenance costs (backstage, front desk, and facade) every year. At the same time, banks can also make trillions of dollars in profits. . However, from the perspective of users, these are actual costs. In order to save and withdraw money with ease and peace of mind, we have to spend trillions of costs every year to support the banking system.
We trust so many institutions that we take it for granted that the economy is built on multiple levels of trust, and therefore often overlook the high costs behind these trusts.
And because the blockchain can replace the role of trust intermediary with a fully mechanized trust model, it can also greatly reduce the credit cost of our entire society.
All in all, the birth of blockchain technology has provided a more exciting solution to the long-standing trust problems and information asymmetry problems in our human society. In the future, as the application of blockchain technology penetrates into all walks of life, blockchain technology will greatly reduce the transaction costs of the entire society, improve efficiency, and create a better future for us.

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June 6, 2024
How can I avoid ICO scams?
In this lesson you will learn how to recognize potential scams in the cryptocurrency sector and what you should look out for.
The methods of raising funds for new coins are as revolutionary as the blockchain technology itself. ICOs (Initial Coin Offerings) are a breath of fresh air in the fundraising world and may even replace traditional venture capital financing for startups over time.
However, it also has a few disadvantages. Investing in ICOs is risky. Scams are common and sometimes suspicious schemes are very difficult to spot at first glance.
Caution: To ensure that you only invest in worthwhile projects, you should be aware of some warning signs that indicate that a project requires a lot of caution.
Before investing in a project, be sure to ask yourself the following questions:
Do I understand this plan?
Does the project have a real “use case” and can I understand it? What is this plan for? Or are only keywords like AI, blockchain, decentralized, revolutionary, etc. used? If a project’s white paper doesn’t make it clear what the project’s goal is and you read on and find yourself more confused than ever, caution is advised. If a project doesn’t make sense to you, you shouldn’t invest in it.
Can this project have real benefits?
Can this project be profitable? If not, it will get little attention because people only buy things they value.
If something looks suspicious to you, it probably is.
After browsing the website, watching videos about the project and reading the white paper, but still not sure what the project is trying to achieve, you should try the infamous duck test: “If it looks like a duck, swims like a duck and quacks like a duck, then it’s probably a duck.
Does the ICO project really need blockchain?
Does this project really need blockchain technology to function or will it work without blockchain? The white paper should clearly explain why blockchain is needed within the project and what role it plays in future product development. You should really only invest in projects that are revolutionary and offer a unique service right after their token ICO.
Who is behind this project?
Of course, every now and then, people who appear out of nowhere and have no track record in the industry have brilliant ideas and are busy launching the next big thing on the scale of Google. Unfortunately, however, you’re far more likely to be scammed by actors you didn’t even know existed than by reputable crypto entrepreneurs and developers.
Ideally, the founders are business oriented and already successful in the industry. For example, they have won awards, they run well-known and established companies, their photos and bios appear in the team section of the website, etc.
The only exception to this caveat regarding anonymous actors is the Bitcoin Project, created by Satoshi Nakamoto, who still maintains a pseudonym.
Do your own research.
If you are interested in a project, you should show your initiative and find out as much detail as possible. Read white papers and posts on social media like Medium, Telegram and Discord, interact with others and find out everything you want to know. However, never base your decisions on someone’s internet posts, such as forums.
Do a project’s “bad times” show up in the roadmap?
Every serious project should present a clearly structured plan that is always up-to-date and includes all project phases, old and new goals and milestones. If the project plan is incomplete or unstructured, something is wrong. Remember: No matter what project you are interested in, if there is no roadmap available, you should reconsider your investment. Don’t forget to do your research.
Can you chat with the founders?
We can all imagine how busy the schedule of project initiators must be. Those who approach a project with passion still make sure to allow enough time to interact with their community and not disrupt the flow of information. It is ideal if the founders of a project are reached through Telegram or other social channels and regularly informed about the project.
It shows professionalism when project managers keep their community informed about the current status of the project and any changes. This means that they value the opinion of their community. If project managers are keeping a low profile or are unwilling to comment, there may be a reason.
- Attention: If a project meets all the requirements, it is not guaranteed to succeed.
People who do not make hasty investment decisions and invest carefully will learn to recognize how an ICO was created for purely fraudulent purposes. If you spot a scam early, you can invest in an ICO instead, which will pay you back in both time and money.
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June 3, 2024
Can cryptocurrencies like Bitcoin be hacked or blocked?
Bitcoin is considered hack-proof because the Bitcoin blockchain is constantly verified by the entire network. Therefore, threads on the blockchain itself are very unlikely.
- Since blockchain technology is centralized and distributed, hacker attacks can be safely prevented.
- A 51% attack can unbalance the blockchain.
- Bitcoin has never been hacked until now.
- Wallets used to store cryptocurrencies are easier to hack than blockchains.
- Accordingly, there are always successful hacker attacks on people and websites.
Why Bitcoin Can Be Considered “Hack Proof”?
What happens if a hacker attacks the Bitcoin blockchain?
What is a 51% attack?
Can Bitcoin be locked/unlocked?
Why are bitcoins stolen?
Why Bitcoin Can Be Considered “Hack Proof”?
Bitcoin is considered hack-proof because the Bitcoin blockchain is constantly verified by the entire network. Therefore, attacks on the blockchain itself are very unlikely. To add a new block with bundled transactions, each participant (miner) solves complex mathematical problems by constantly updating the Bitcoin database.
These complex mathematical problems arise from Bitcoin’s cryptographic hash function. When a particular block is added to the database, every node in the network must agree on the block’s validity. Only when all nodes match will the Bitcoin database be updated accordingly.
Manipulation of the cryptocurrency network is almost impossible. Decentralized, temporal, computational and powerful Bitcoin blockchain not only prevents deletion and overwriting of pre-validated Bitcoin block, but also prevents double spending.
What happens if a hacker attacks the Bitcoin blockchain?
As you already know, there is not just one copy of the Bitcoin blockchain. Instead, every node in the Bitcoin network has a copy. Nodes are distributed worldwide and contain all Bitcoin transactions made to date.
A hacker who wants to change the distributed database of Bitcoin or any other network based on blockchain technology will have to hack not one, but more than half of the computers participating in the network (51% of the attack).
What is a 51% attack?
A 51% attack is the biggest threat to the blockchain if such an attack is successfully carried out by a person or organization and thus captures most of the network’s mining power (hashrate) and compromises Bitcoin’s transaction history. can go. The network can be changed and overwritten purely theoretically.
A majority (i.e. 51%) is always required to decide which transactions are accepted and which are rejected. This means that a majority of 51% can change the blockchain’s distributed database. This will cost twice as much – it is possible to spend the same transaction multiple times. However, it is very rare that such a scenario will actually occur.
A 51% attack on Bitcoin has never succeeded, and the network has never shut down, even for a brief moment.
Can Bitcoin be locked/unlocked?
A 51% attack on Bitcoin has never succeeded, and the network has never shut down, even for a brief moment. Additionally, several authorities and banks have repeatedly called for the shutdown of the Bitcoin network. Every time without success, because Bitcoin has been running without interruption for almost 10 years.
For a complete system failure of the Bitcoin network, many things would have to go wrong. Here are a few “doomsday scenarios”:
If there was a worldwide power outage, the Internet and all communication channels were shut down, the nodes in the network would not be able to communicate with each other and the entire Bitcoin network would shut down.
The Bitcoin update contains a malicious bug that was not detected in the Bitcoin protocol despite careful testing and review of the peer-to-peer network. The network will likely crash for a short period of time. This could lead to a drastic drop in the price of Bitcoin and a fork of the blockchain.
Bitcoin is decentralized and therefore theoretically cannot be banned by any single government. However, there have been attempts in the past to ban cryptocurrencies or limit their use. Since one government cannot do much on its own, several governments can work together to push for a ban on cryptocurrencies. However, it is highly likely that governments will pass laws to protect investors and tax laws.
A 51% attack represents an unexpected but serious threat, however, for such an attack to be successful, not only 51% of network participants would be required, but also a huge investment in mining equipment. It will be necessary. In addition to these factors, it is highly unlikely that such a majority will occur, as network participants will also risk their profits.
Additionally, new and supposedly better cryptocurrencies are introduced to the markets almost daily. Such developments risk market fatigue when it comes to investing. This means that once all the investors
Can Bitcoin be locked/unlocked?
A 51% attack on Bitcoin has never succeeded, and the network has never shut down, even for a brief moment. Additionally, several authorities and banks have repeatedly called for the shutdown of the Bitcoin network. Every time without success, because Bitcoin has been running without interruption for almost 10 years.
For a complete system failure of the Bitcoin network, many things would have to go wrong. Here are a few “doomsday scenarios”:
If there was a worldwide power outage, the Internet and all communication channels were shut down, the nodes in the network would not be able to communicate with each other and the entire Bitcoin network would shut down.
The Bitcoin update contains a malicious bug that was not detected in the Bitcoin protocol despite careful testing and review of the peer-to-peer network. The network will likely crash for a short period of time. This could lead to a drastic drop in the price of Bitcoin and a fork of the blockchain.
Bitcoin is decentralized and therefore theoretically cannot be banned by any single government. However, there have been attempts in the past to ban cryptocurrencies or limit their use. Since one government cannot do much on its own, several governments can work together to push for a ban on cryptocurrencies. However, it is highly likely that governments will pass laws to protect investors and tax laws.
A 51% attack represents an unexpected but serious threat, however, for such an attack to be successful, not only 51% of network participants would be required, but also a huge investment in mining equipment. It will be necessary. In addition to these factors, it is highly unlikely that such a majority will occur, as network participants will also risk their profits.
Additionally, new and supposedly better cryptocurrencies are introduced to the markets almost daily. Such developments risk market fatigue when it comes to investing. This means that once all the investors have bought the asset, there are no buyers left to sell, even if they want to sell, resulting in a drop in price.
Bitcoin has been operating smoothly for nearly ten years and will continue to maintain both its reputation and value.
Bitcoin has been operating smoothly for nearly ten years and will continue to maintain both its reputation and value.
Why are bitcoins stolen?
Most cryptocurrency thefts involve users and websites that do not take proper precautions when storing them. Often, coins that are kept in places where they are not safe are stolen.
For example, a “hot wallet” is any cryptocurrency wallet that is connected to the Internet or “online” in some way. Hot wallets are wallets on desktop or mobile devices, as well as wallets hosted by an exchange that has failed to keep its security measures up to date. A hot wallet can also refer to wallet private keys that are carelessly stored on a compromised, hackable device.
Cryptocurrencies are stolen because they are stored in unsecured locations.
The Mt.Gox hack is perhaps the biggest example of poor security precautions and the biggest theft of cryptocurrencies. Mt Gox was an exchange founded in Japan and converted to a Bitcoin exchange in 2010. Due to lack of security measures, more than 850,000 BTC were stolen. Mt. Gox hack is the biggest hack since the creation of Bitcoin and led to the bankruptcy of the exchange in 2014.
Fortunately, other exchanges around the world learned from this incident and have since kept their security measures up to date. However, we recommend that all cryptocurrency users practice prudent security habits and read our article on how to store cryptocurrencies safely.
Although certain security precautions must be taken, blockchain technology with its distributed database is one of the most innovative and important innovations to date. Blockchain technology opens the door to many applications that are just waiting to conquer the world.
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June 2, 2024