6 Best Bitcoin Mining Hardware ASICs Comparison In 2017

How to Create Your Own Cryptocurrency Using Python 2020

A blockchain is a public database that irreversibly documents and authenticates the possession and transmission of digital assets. Digital currencies, like Bitcoin and Ethereum, are based on this concept. Blockchain is an exciting technology that you can use to transform the capabilities of your applications.
Of late, we’ve been seeing governments, organizations, and individuals using the blockchain technology to create their own cryptocurrencies—and avoid being left behind. Notably, when Facebook proposed its own cryptocurrency, called Libra, the announcement stirred many waters across the world.

What if you could also follow suit and create your own version of a cryptocurrency?

I thought about this and decided to develop an algorithm that creates a crypto.
I decided to call the cryptocurrency fccCoin.
In this tutorial, I’m going to illustrate the step-by-step process I used to build the digital currency (I used the object-oriented concepts of the Python programming language).
Here is the basic blueprint of the blockchain algorithm for creating the fccCoin:
class Block: def __init__(): #first block class pass def calculate_hash(): #calculates the cryptographic hash of every block class BlockChain: def __init__(self): # constructor method pass def construct_genesis(self): # constructs the initial block pass def construct_block(self, proof_no, prev_hash): # constructs a new block and adds it to the chain pass u/staticmethod def check_validity(): # checks whether the blockchain is valid pass def new_data(self, sender, recipient, quantity): # adds a new transaction to the data of the transactions pass u/staticmethod def construct_proof_of_work(prev_proof): # protects the blockchain from attack pass u/property def last_block(self): # returns the last block in the chain return self.chain[-1]
Now, let me explain what is taking place…
1. Building the first Block class A blockchain comprises of several blocks that are joined to each other (that sounds familiar, right?).
The chaining of blocks takes place such that if one block is tampered with, the rest of the chain becomes invalid.
In applying the above concept, I created the following initial block class
import hashlib import time class Block: def __init__(self, index, proof_no, prev_hash, data, timestamp=None): self.index = index self.proof_no = proof_no self.prev_hash = prev_hash self.data = data self.timestamp = timestamp or time.time() u/property def calculate_hash(self): block_of_string = “{}{}{}{}{}”.format(self.index, self.proof_no, self.prev_hash, self.data, self.timestamp) return hashlib.sha256(block_of_string.encode()).hexdigest() def __repr__(self): return “{} – {} – {} – {} – {}”.format(self.index, self.proof_no, self.prev_hash, self.data, self.timestamp)
As you can see from the code above, I defined the __init__() function, which will be executed when the Block class is being initiated, just like in any other Python class.
I provided the following parameters to the initiation function:
self—this refers to the instance of the Block class, making it possible to access the methods and attributes associated with the class; index—this keeps track of the position of the block within the blockchain; proof_no—this is the number produced during the creation of a new block (called mining); prev_hash—this refers to the hash of the previous block within the chain; data—this gives a record of all transactions completed, such as the quantity bought; timestamp—this places a timestamp for the transactions. The second method in the class, calculate_hash, will generate the hash of the blocks using the above values. The SHA-256 module is imported into the project to assist in obtaining the hashes of the blocks.
After the values have been inputted into the cryptographic hash algorithm, the function will return a 256-bit string representing the contents of the block.
This is how security is achieved in blockchains—every block will have a hash and that hash will rely on the hash of the previous block.
As such, if someone tries to compromise any block in the chain, the other blocks will have invalid hashes, leading to disruption of the entire blockchain network.
Ultimately, a block will look like this:
{ “index”: 2, “proof”: 21, “prev_hash”: “6e27587e8a27d6fe376d4fd9b4edc96c8890346579e5cbf558252b24a8257823”, “transactions”: [ {‘sender’: ‘0’, ‘recipient’: ‘Quincy Larson’, ‘quantity’: 1} ], “timestamp”: 1521646442.4096143 }
2. Building the Blockchain class The main idea of a blockchain, just as the name implies, involves “chaining” several blocks to one another.
Therefore, I’m going to construct a Blockchain class that will be useful in managing the workings of the whole chain. This is where most of the action is going to take place.
The Blockchain class will have various helper methods for completing various tasks in the blockchain.
Let me explain the role of each of the methods in the class.
a. Constructor method This method ensures the blockchain is instantiated.
class BlockChain: def __init__(self): self.chain = [] self.current_data = [] self.nodes = set() self.construct_genesis()
Here are the roles of its attributes:
b. Constructing the genesis block The blockchain requires a construct_genesis method to build the initial block in the chain. In the blockchain convention, this block is special because it symbolizes the start of the blockchain.
In this case, let’s construct it by simply passing some default values to the construct_block method.
I gave both proof_no and prev_hash a value of zero, although you can provide any value you want.
def construct_genesis(self): self.construct_block(proof_no=0, prev_hash=0) def construct_block(self, proof_no, prev_hash): block = Block( index=len(self.chain), proof_no=proof_no, prev_hash=prev_hash, data=self.current_data) self.current_data = [] self.chain.append(block) return block
c. Constructing new blocks
The construct_block method is used for creating new blocks in the blockchain.
Here is what is taking place with the various attributes of this method:
d. Checking validity
The check_validity method is important in assessing the integrity of the blockchain and ensuring anomalies are absent.
As mentioned earlier, hashes are essential for the security of the blockchain as even the slightest change in the object will lead to the generation of a completely new hash.
Therefore, this check_validity method uses if statements to check whether the hash of every block is correct.
It also verifies if every block points to the right previous block, through comparing the value of their hashes. If everything is correct, it returns true; otherwise, it returns false.
u/staticmethod def check_validity(block, prev_block): if prev_block.index + 1 != block.index: return False elif prev_block.calculate_hash != block.prev_hash: return False elif not BlockChain.verifying_proof(block.proof_no, prev_block.proof_no): return False elif block.timestamp <= prev_block.timestamp: return False return True
e. Adding data of transactions
The new_data method is used for adding the data of transactions to a block. It’s a very simple method: it accepts three parameters (sender’s details, receiver’s details, and quantity) and append the transaction data to self.current_data list.
Anytime a new block is created, this list is allocated to that block and reset once more as explained in the construct_block method.
Once the transaction data has been added to the list, the index of the next block to be created is returned.
This index is calculated by adding 1 to the index of the current block (which is the last in the blockchain). The data will assist a user in submitting the transaction in future.
def new_data(self, sender, recipient, quantity): self.current_data.append({ ‘sender’: sender, ‘recipient’: recipient, ‘quantity’: quantity }) return True
f. Adding proof of work
Proof of work is a concept that prevents the blockchain from abuse. Simply, its objective is to identify a number that solves a problem after a certain amount of computing work is done.
If the difficulty level of identifying the number is high, it discourages spamming and tampering with the blockchain.
In this case, we’ll use a simple algorithm that discourages people from mining blocks or creating blocks easily.
u/staticmethod def proof_of_work(last_proof): ”’this simple algorithm identifies a number f’ such that hash(ff’) contain 4 leading zeroes f is the previous f’ f’ is the new proof ”’ proof_no = 0 while BlockChain.verifying_proof(proof_no, last_proof) is False: proof_no += 1 return proof_no u/staticmethod def verifying_proof(last_proof, proof): #verifying the proof: does hash(last_proof, proof) contain 4 leading zeroes? guess = f'{last_proof}{proof}’.encode() guess_hash = hashlib.sha256(guess).hexdigest() return guess_hash[:4] == “0000”
g. Getting the last block
Lastly, the latest_block method is a helper method that assists in obtaining the last block in the blockchain. Remember that the last block is actually the current block in the chain.
u/property def latest_block(self): return self.chain[-1]
Let’s sum everything together
Here is the entire code for creating the fccCoin cryptocurrency.
You can also get the code on this GitHub repository.
import hashlib import time class Block: def __init__(self, index, proof_no, prev_hash, data, timestamp=None): self.index = index self.proof_no = proof_no self.prev_hash = prev_hash self.data = data self.timestamp = timestamp or time.time() u/property def calculate_hash(self): block_of_string = “{}{}{}{}{}”.format(self.index, self.proof_no, self.prev_hash, self.data, self.timestamp) return hashlib.sha256(block_of_string.encode()).hexdigest() def __repr__(self): return “{} – {} – {} – {} – {}”.format(self.index, self.proof_no, self.prev_hash, self.data, self.timestamp) class BlockChain: def __init__(self): self.chain = [] self.current_data = [] self.nodes = set() self.construct_genesis() def construct_genesis(self): self.construct_block(proof_no=0, prev_hash=0) def construct_block(self, proof_no, prev_hash): block = Block( index=len(self.chain), proof_no=proof_no, prev_hash=prev_hash, data=self.current_data) self.current_data = [] self.chain.append(block) return block u/staticmethod def check_validity(block, prev_block): if prev_block.index + 1 != block.index: return False elif prev_block.calculate_hash != block.prev_hash: return False elif not BlockChain.verifying_proof(block.proof_no, prev_block.proof_no): return False elif block.timestamp <= prev_block.timestamp: return False return True def new_data(self, sender, recipient, quantity): self.current_data.append({ ‘sender’: sender, ‘recipient’: recipient, ‘quantity’: quantity }) return True u/staticmethod def proof_of_work(last_proof): ”’this simple algorithm identifies a number f’ such that hash(ff’) contain 4 leading zeroes f is the previous f’ f’ is the new proof ”’ proof_no = 0 while BlockChain.verifying_proof(proof_no, last_proof) is False: proof_no += 1 return proof_no u/staticmethod def verifying_proof(last_proof, proof): #verifying the proof: does hash(last_proof, proof) contain 4 leading zeroes? guess = f'{last_proof}{proof}’.encode() guess_hash = hashlib.sha256(guess).hexdigest() return guess_hash[:4] == “0000” u/property def latest_block(self): return self.chain[-1] def block_mining(self, details_miner): self.new_data( sender=”0″, #it implies that this node has created a new block receiver=details_miner, quantity= 1, #creating a new block (or identifying the proof number) is awarded with 1 ) last_block = self.latest_block last_proof_no = last_block.proof_no proof_no = self.proof_of_work(last_proof_no) last_hash = last_block.calculate_hash block = self.construct_block(proof_no, last_hash) return vars(block) def create_node(self, address): self.nodes.add(address) return True u/staticmethod def obtain_block_object(block_data): #obtains block object from the block data return Block( block_data[‘index’], block_data[‘proof_no’], block_data[‘prev_hash’], block_data[‘data’], timestamp=block_data[‘timestamp’])
Now, let’s test our code to see if it works.
blockchain = BlockChain() print(“***Mining fccCoin about to start***”) print(blockchain.chain) last_block = blockchain.latest_block last_proof_no = last_block.proof_no proof_no = blockchain.proof_of_work(last_proof_no) blockchain.new_data( sender=”0″, #it implies that this node has created a new block recipient=”Quincy Larson”, #let’s send Quincy some coins! quantity= 1, #creating a new block (or identifying the proof number) is awarded with 1 ) last_hash = last_block.calculate_hash block = blockchain.construct_block(proof_no, last_hash) print(“***Mining fccCoin has been successful***”) print(blockchain.chain)
It worked!
Here is the output of the mining process:
***Mining fccCoin about to start*** [0 – 0 – 0 – [] – 1566930640.2707076] ***Mining fccCoin has been successful*** [0 – 0 – 0 – [] – 1566930640.2707076, 1 – 88914 – a8d45cb77cddeac750a9439d629f394da442672e56edfe05827b5e41f4ba0138 – [{‘sender’: ‘0’, ‘recipient’: ‘Quincy Larson’, ‘quantity’: 1}] – 1566930640.5363243]
Conclusion
There you have it!
That’s how you could create your own blockchain using Python.
Let me say that this tutorial just demonstrates the basic concepts for getting your feet wet in the innovative blockchain technology.
If this coin were deployed as-is, it could not meet the present market demands for a stable, secure, and easy-to-use cryptocurrency.
Therefore, it can still be improved by adding additional features to enhance its capabilities for mining and sending financial transactions.
Nonetheless, it’s a good starting point if you decide to make your name known in the amazing world of cryptos.
If you have any comments or questions, please post them below.
Happy (crypto) coding!
Source: Cryptoors
submitted by djkloud to CryptoTechnology [link] [comments]

Komodo and 'Blockchain Sovereignity'

jl777’s first law of blockchain dynamic:“Once the value of the assets exceeds the value of the underlying platform, it become irresistible to invent ‘taxes’ to extract a rent-seeking position”
In the ‘multi-chain’ category of blockchain platforms, Komodo stands out both as a pioneer and as the most extreme application of such design. Creating and running fully independent blockchains is one of Komodo main design features, so I want to talk a little about the concept of ‘blockchain sovereignity’ and how it compares with the competition.
First I need to define the meaning of blockchain sovereignity, I’ll offer this one:
Sovereignity is a project’s degree of independence from the platform it's built upon. The more its reliability, features and costs are immune from the base layer’s own reliability, features, costs, changes or events, the more it’s ‘sovereign’.
This concept isn’t much talked about in the cryto space but it’s going to grow in importance in future. Actually it’s already been important… in the past 6 years I’ve seen more than one project wrecked by backward incompatible changes on the underlying platform: does anyone remember Counterparty and the op_return story? Or when Vitalik tried first to build his idea on Bitcoin? Or the Supernet project on Nxt? So this is not just an abstract problem!
How does this concept apply to project built on Komodo technology? On Komodo they will enjoy by default the following ‘sovereign’ features:
  1. Every Smartchain is completely independent from Komodo and from each other
  2. It doesn’t cost any Komodo to create or use a Smartchain
  3. A Smartchain pays its own tx fees in its own native coin
  4. A Smartchain has its own open network of nodes, consensus rules and customization possibilities
In other words they’re all as independent blockchains as they can be, though they come with cross-chain interoperability. If aliens pulverized all Komodo nodes from orbit, any Smartchains would continue to work. Exactly like Litecoin would continue to work if Bitcoin disappeared or vice-versa. In fact anyone is free to create a fully functional Smartchain and it wouldn’t make difference if it never interacted with the rest of Komodo ecosystem!
How does such design compare with other multi-chain platforms?
Ethereum has by far the most developed infrastructure after Bitcoin. Now it’s under a gradual transition to a 2.0 version that should be completed sometimes between 2020 and 2021. Ethereum was born with a single chain design but the 2.0 plan has striking resemblances with a sort of multichain or bespoke architecture: the base layer will adopt a sharding technology and far larger use will be made of various 2nd layer scaling solutions: Plasma, State Channels, Payment Channels and ZK-STARKs. All of them come with different trade-offs but overall they should fix the scaling problems. Yet from the point of view of ‘sovereignity’ this design doesn’t offer much. Projects using 2nd layers solutions will be safe from congestion but their security, fees and interoperability will still be strongly dependent upon the base layer. Indeed their very existence depends on it, no plasma sidechain can exist without Ethereum! Despite a well developed smart contract technology, no real customizations are possible at the core level and the gas cost remains a concern for resource-intensive applications.
Polkadot was born specifically as a multichain scalable & interoperable protocol. Yet the chains based on it, called parachains, are strongly dependent on the base layer for security and only a limited number of parachain slots exist. Their number gets increaesed in time but, in order to avoid squatting, they must be won via an auction mechanism. Thus a parachain is only ‘rented’, working in practice like a subscription model. This design is very little reassuring from the ‘sovereignity’ point of view!
Ardor is a platform that allows to create individual ‘Child Chains’ for specific businesses or purposes. Such childchains have their own token but the Ardor token is still needed to pay for block creation purpose, so it comes with an automatic market-based exchange mechanism between them. Childchains are safe from congestion but still completely dependent on the base layer for security and survival. They come with smart contract and useful features but no advanced customizations are possible.
Cosmos is a network of independent application-specific blockchains, i.e. it allows to create custom blockchains using both prebuilt modules or creating your own. Cosmos is probably the one coming closer to Komodo in terms of sovereignity and customizations and it has many clever mechanisms and features that make it one of the most interesting projects in the crypto space. The customizations possibilities are greater than most competitors, yet compared to Komodo there are parts where it’s lacking: first the only consensus algo choice is Tendermint and don’t seem to be options to customize that. Then the Atom coins are required for transactions between blockchains and payment of commissions. And last the smart contract language is still interpreted and gas-based.
I think it’s fair to say that Komodo wins hands down in the blokchain ‘sovereignity’ category. But let’s also ask another important question: does ‘blockchain sovereignity’ really matter?
I’ve mentioned a few examples where it did make a huge difference, yet the proper answer is that it depends… there exists a very large spectrum of blockchain-based projects with very different needs!
At one end of the spectrum we find tokens with a temporary utility. At the other extreme there are mission-critical projects with highly customized features. For the former ‘sovereignity’ is of no importance. For the latter it can make the difference between working and catastrophe. Everything in the middle have to decide for itself on a case by case base.
I think tokens/colored coins are perfectly fine for the simplest cases.
Ethereum, Cosmos, Polkadot, Ardor and others are probably fine too for more advanced cases.
Komodo’s target market overlaps with them but its ultimate audience are the most ambitious and challenging projects, the ones needing full sovereignity and state-of-the-art customizations at the core level.
The base degree of independence enjoyed by developers using Komodo technology is further compounded by unique technological advances like the Antara framework.
With Antara any program, software, blockchain rule and feature can be coded into special purpose modules. ‘Smart contracts’ are just a subset of what Smartchains can be programmed to do. Anything is possible, including changes to core consensus rules. The modules are compiled with the daemon and run at native cpu speed, without gas fees or virtual machine.
Antara represents a qualitative jump above all existing ‘smart contract’ technologies, similar to the difference between Asic mining vs Cpu mining.
jl777:“It seems almost all other smartcontract solutions are just a variation on the self-limiting GAS model. You would think there would be a better solution, and there is. The transactionalized… model totally avoids the GAS issue, runs the custom code at native CPU speeds (not interpreted) and best of all the performance is not affected by any other project as you have your own Smartchain...”
The library of Antara modules continues expand and simple dApps can be created using the large set of rpc calls available from existing modules.
Developing an entire module from scratch isn’t stuff for weekend coders but any serious project looking for state-of-the-art custom solutions is certainly going to pay attention!
To recap, if you’re planning to use a platform to launch a blockchain-based project (especially a very complex one) there’s a set of questions that you must ask yourself before proceeding:
If the questions above matter to you, then it’s time to take the concept of ‘blockchain sovereignity’ seriously.
Jl777 “Smart projects that want to build a valuable use-case would want to minimize… all future incremental costs… ideally minimal or zero, like zero tax platform. Since this sounds too good to be true, most maybe don’t even imagine it is possible, but the smart projects will analyze these critical details...”
You may wonder why there aren’t more free platforms like Komodo? The reason is simple: all coin holders are concerned with finding use cases that give value to their coin. Moreover some platforms have big VC funders that want a return on their investment. So the more use cases the better: simple, isn’t it? Unfortunately this leads to short-sighted decisions, like forcing the use of a coin in any possible way or putting a cap on usage or ‘fee market’ fantasies.
Jl777 “Increasing tax rates might boost revenues temporarily from projects that are locked in, but as soon as the taxes become meaningful, every effort is made to migrate, regardless of the cost to migrate. Isn’t it better to start in a tax free zone?”
Komodo is unique in this regard, as it has made a deliberate design decision to be as much permissionless and free as possible. Some people find this design hard to understand: I could buy a Lambo if I had one dollar for every time someone asked “So what is Komodo use case?”. It takes some long-term vision to understand the benefits.
Komodo does have use-cases but none of them is obligatory or costly. Projects building on its technology are free to use Komodo or not to use it at all. They can design their own alternatives. They could even create a separate dPoW network! Yet Komodo remains the cheapest, simplest and most liquid option and center of its ecosystem. This fact alone ensures it’s going to be actually used.
MrKomodoWorld: “Instead of devising schemes to make projects pay, Komodo has devised schemes that prevents itself from forcing projects to pay”
submitted by KomodoWorld to CryptoCurrency [link] [comments]

AMA in the community

Q1:- What is SpockChain & its Current Progress? What are the Problems SpockChain trying to solve?

Ans:- Spock has been launched its mainnet on 8/13 2019, it’s the first public blockchain support Solidity smart contract with PoC consensus. In the last month, we have achieved several goals: 1.launched the mainnet, 2.been listed on 6 exchanges, and also Spock has won the voting competition for free list on MXC. 3. Spockpool is online to help small miners to union their capacity and get share of the mining reward. Spock is building a decentralized application network with PoC consensus, which is a more cost saving, environment friendly solution for blockchain system. Spock is going to release is first smart contract in the following months.

Q2:- What is the Use-case Of Spok Coin In Your Ecosystem? How can Holders & Investors Generate Rewards Using Spock Platform?

Ans:- In Spock Network, People can publish/run the apps on the network, all the dapps running on the network needs SPOK. and besides PoC consensus, Spock also involves the concept of PoS, which is that miners need to stake some coins to mine the coins, if not, the miner cannot get the 100% of the block reward, so in SpockPool, coin holders can lend the coins to the miners, when miners mined the reward, it can share with the coin holders.

Q3:- What is the Need & Importance Of SpockChain project in Blockchain Industry?

Ans:- First of all, I think PoC consensus will be a serious option besides PoW and PoS in future, and there must be a significant project stands for PoC consensus, currently Burst or BHD maybe the one, but these two projects has a common problem is that they do not have ecosystem, they only created a coin with PoC consensus, that’s too simple to today’s blockchain world. Spock will be the star project in this area not only just created a coin with PoC consensus, but also it supports smart contract, Ethereum dapps, games can be easily migrated to Spock network.

Q4:- What are the Milestones SpockChain has achieved from the starting of this project? What are the Long Term Targets?

Ans:- For the first question, I have answered in the previous one. Like launch the mainnet, got investment from Continue Capital and other token funds, IEO/IGO on the several exchanges, got free list on MXC by won the voting competition, released explorer, dashboard, desktop wallet, Android wallet, and SpockPool, all these things above happens in the last month!!! For the short-term goal, Spock is trying to be the Ethereum with PoC consensus, so for the following 6 month to 1 year, Spock will expand the developer community to increase the dapps/tokens on its network. And also the final goal of Spock is to upgrade the consensus not only store the hash value, but also store documents, music, videos, etc. We’re still working on that part.

Segment 2 Questions

Q5:- What are your major goals to archive in the next 3-4 years? Where can we Spockchain ecosystem in this period? What are your plans to expand and gain more adoption?

Ans:- 1. Spreading the Proof of Capacity consensus, let more people know there is another way of mining to gain. 2. Build the developer economy on Spock Network, on Spock Network, not only smart contract, but a new type of tokens will be supported, which is not like the ERC-20, it’s tokens that generated as the block generated, but the developer can define the tokens generation rules, we call them mining-tokens. 3. Search the new way to upgrade the storage network, to finally achieve the goal that the a decentralized storage network can serve the internet users, that would be a totally new future of blockchain world.

Q6:- As a team member of Spockchain, what is your long-term vision about the industry which Spockchain is working at? Are you afraid someday there will be another project with more innovative technology can replace?

Ans:- I think the infrastructure of Blockchain world today has only two main directions: 1. cross chain Technoledge like Cosmos, Polka-dot. 2. Decentralized storage like IPFS. As long as we're heading to the right direction, we won't get a very bad result, even we have failed, but the way we passed through can be borrowed to other projects, there must be some projects success in this area. I feel confident about the project going and what we have done comparing to the other competitors, as currently so many projects claim that they want to be Ethereum in PoC, but none of the has launched the mainnet except SPOCK.

Q7:- Why Spock Network have Chosen Proof of Capacity Consensus Mechanism ? Any advantage over other consensus?

Ans:- Here is the description in the white paper about advantage of PoC:
Environmental protection: When a mining machine is initialized, the mining cost is relatively small, requiring only a small amount of disk access and a small amount of calculations per block.
• Economy: Many PCs have unused disk space. The marginal cost of using these spaces for mining is small, with immediate rewards and can be used for mining. It is not necessary to consider the cost of electricity as a bitcoin mining machine.
• Equality: Today Bitcoin has become the world of Asics mining machines and large mines, and small-scale investors have struggled to participate in the bitcoin mining ecology, while POC-based mining machines are hardly faced with bitcoin-like The mining machine is constantly updating its iterations so that it is completely eliminated.
• “computing power” sharing: BCH is a BTC hard fork chain, so BTC's proprietary mining machine can also dig BCH, but it can't dig BTC and BCH at the same time, and the POC mechanism can make the hard disk for different chains. The spatial "computing power" data structure is consistent, and these "computing power" can be used to dig assets on these chains at the same time.
I think the value of PoC is under-estimated today, that’s why we want to promote the consensus.

Q8:- What are the competitors of Spock Network? How Spock Network is better than their competitors ?

Ans:- In storage domain, they can be: Filecoin/Storj/Sia/Lambda/Filestorm/Yotta
In PoC consensus domain, there are: Burst/BHD/LHD/Boom/Newbi/Disc
In PoC+Smart contract domain, there are: Spock/Galaxy Network/BSN/EHD
Currently, in a completely decentralized blockchain network, there is no such consensus can distribute the coins as the miners contribute the hard disk and network, all these projects take some trade-off to make that happen except File coin, File coin uses Proof of Replication and Proof of Space-time consensus, that may be an option to solve this problem, but its mainnet has not launched, it would take time to achieve that. The Burst, BHD, and other similar projects only uses PoC consensus to created a mining coin, but the usage and scenario are very limited, it’s not year 2013, you can simply create an alt coin and people will buy it. The PoC consensus needs find some usage and scenario to make the network more solid and strong, the smart contract can be the way. As I listed, all the projects have not launched its mainnet except Spock.

Q9:- How Scalable Spock Network have , How many TPS achieved so far ?

Ans:- Spock has its own advantage about improve TPS, because nodes running in the network has much hard disks and network traffic, basically we can increase the size of block header to increase the TPS, and also we're investigating other ways to improve the TPS.

Q10:- Why the name of Project " SPOCK" . What does it signify about your project?

Ans:- Spock is the leading character of Star Trek, we choose the name to inspire the team to keep exploring the possibility of the blockchain world, sand the slogan of Spock is “live long and prosper”, which is also the hope of the team for the project, nowadays, too many fake mining projects out there, Spock wants to show the honesty and integrity by continually showing the code and improving the project.

Q11:- Followed your whitepaper, Spock has a leaderless PoC protocol, does not use a committee or an authority. How this use for? What benefit does it have for Spock?

Ans:- In the consensus level, there is indeed no such organization can change or control it, just like PoW, when the network needs to upgrade its consensus, the community will join the discussion and the dev team will follow the result of it. That's the spirit of Satoshi and all the early blockchain projects.

Q12:- What is the form of Spock mining? What are the conditions for miner application?

Ans:- To mine spock, you can just use normal computer with several hard dist with plotted files, there are tutorials on thehttps://www.spockchain.org

Q13:- What next technology updating after building a decentralized storage data application network in 2021? Will Spock expand to other areas in long term development?

Ans:- I think after the infrastructure is completed that we will focus on the application ecosystem and adoption of the ecosystem, Spock dev team will continue working on the infrastructure and other scenarios/applications to promote the adoption, I think in a very long time, Spock project will only focus on decentralized storage domain.

Q14:- Does your team have a plan to add DAO module into your project since its its effiency on autonomy, decentralization and transparency?

Ans:- Spock will run DAO mode for autonomy, the Spock team is still working on the details of it.

Q15:- What is the role of Smart Contract in Spock Chain? Does your team have a security system to check the operation of whole project?

Ans:- Smart Contract will be the key feature that distinguish Spock and other projects with PoC consensus, Spock leverages lots of work from Ethereum, so Spock is standing on the shoulders of giants, which potential lower-level security risks can be avoid, and we also have a security team to improve the smart contract, like before you submit your smart contract, there is a service to help to analysis the code to help you avoid some common mistakes.

Q16:- What is Spockchain vision and what's your biggest challenges?

Ans:- Spock is trying to be Ethereum with PoC consensus in a short-term, that goal seems to be very promising as everything goes well so far. Spock’s long-term goal is trying to provide a decentralized storage network for all the internet users, that would be challenging from both technical side and business side.

Q17:- Spockchain looks good but it confuses me that there are so many other Blockchain projects. What should I pay attention in Spockchain to give it the importance it deserves? What are you planning to achieve with your project goal?

Ans:- I think code and time talks, Spock is not a simply ERC-20 token, it’s a mining coin. If you checkout the top 50 projects on CMC, most of them are mining projects, because mining coins are very fair way to distribute the coins. And Spock provides another option for mining, you don’t have to search for low-cost electricity power, you can just set up the mining machines at home to mine the coins. It’s a potential mining way to mine cryptocurrency, if you have mined BTC/ETH, you can have a try about Spock/Burst/BHD, etc.

Q18:- Blockchain projects is not a child play. While creating spok projects, have u for once been discouraged to the extent of wishing to stop since its all about intelligent contract and users poc consensus.

Ans:- Honestly, we do. there is so many hard work to combine the smart contract and poc consensus, but we believe the technology and engineering, and we believe the judgement about the trend of blockchain technology, that's what encourage us to the place we have achieved.

Q19:- How the SpockChain project planning process is ensure? The market needs constant progress of project! How to avoid the spok Project idleness?

Ans:- We're continuously building and expanding the community and miner groups, both online and offline side. currently most miners are from Asia(China mostly),there are only several miners in Europe and US, we do want to spread spok ecosystem across other continents, if anyone in other countries is interested in promoting Spock, please directly contact me!

Q20:- Can anyone run a POC mining and does it require much processing power? Is the cost of POC mining high?

Ans:- Yes, anyone can run a PoC mining, it's electricity power insensitive. the electricity power of each petabytes of a day is only several dolloars, while the cost of a petabytes will be about 30000 dollars.

Q21:- Is POC exploitation cost high? What is it suitable for? What is the number of SPOCK user statistics today? Does SPOCK have a plan to attract users?

Ans:- you can check out the websites, Official website: https://www.spockchain.org Spock Explorer: http://www.spock.network Miner Dashboard: https://dashboard.spock.network

Q22:- What is the function of SPOCK? Are there any benefits to SPOCK holders? How do I earn SPOCK?

Ans:- All the smart contract runs on Spock will cost SPOK, and miners want to mine SPOK will need some amount of SPOCK to stake. You can get the Spock on the exchanges that lists Spock, MXC, Coinex, VB, Bihodl, etc.
Q23:- So What does SPOCK ecosystem include? What all problems SPOCK will solve in Crypto market?
Ans:- Spock is trying to be the Ethereum with PoC consensus, the biggest advantage of PoC consensus is that it saves much electricity than PoW, the “computing power “ is kind of like stored on the hard disk, so the system will be changed to be storage-incentive from computing-incentive., that would change the way of crypto mining, and also Spock introduced the Solidity smart contract in such blockchain system, which make the developers easily migrated their dapps from Ethereum to Spock.
Q24:- How Proof of Capacity Consensus works in SPOCK Chain?
Ans:- The core function about PoC in Spock is just like the PoC consensuse implementation in Burst project, which is the first project uses PoC consensus since year 2014. In high level, the PoC consensus is an algorithm which preprocessing the hash calculation by plotting the whole hard disk with hash values, when generating a new block, the node will scan the hard disk and find the most proper "answer" in the disks and submit to the network, the node submitted the most proper answer will get the mining reward.
Q25:- How Spock and other storage platform i.e. Google drive are different and what benefits you have over them?
Ans:- Basically Spock and Google drive is totally different, as Spock today only stores consensus data. I’d like to talk about the overall differences between decentralized storage and centralized storage services.
Traditional centralized storage platforms generally use cloud storage. Most of the data is stored on a few cloud platforms, which leads to data accumulation and serious centralization problems. There are also problems including higher cost, slower transfer rate, and lower data security. The decentralized storage application platform encrypts and distributes data through a distributed network, meaning that no data other than the data owner can access the data, ensuring security.
And another core feature is the protection of private data, the open decentralized platform can do better, just like the assets of the cryptocurrency, the ownership of the assets represented by the private key, in the decentralized storage platform The private key can represent the disposition and access rights of the data.
Q26:- What do you think is the biggest problem Spock Network will solve which is not solved by other projects yet and why is the problem important to solve?I mean how unique SPOCK Network have?What are the Real world use-cases & utility of SPOK ?
Ans:- 1. I think there are so much projects uses PoC consensus, but all of them are lack of economy, with smart contract feature, Spock will be the first public blockchain support Solidity smart contract and with lower energy cost for running.
2. First of all, the usage of the smart contract will cost SPOK , and the mining policy makes miners need to stake SPOK to mine. and other industry is trying to looking for the adoption of Spock as it's a storage network with smart contract, there is very much possibility we can explore.
Q27:- Will the mining on SPOCK CHAIN Platform Profitablein bear Market? In which form will the output of Mining?
Ans:- The PoC mining is the most anti-bear-marketing mining way I think, you know when BTC comes to 15000$, Bitmain miners S9’s price goes to 4000$, this year, when the BTC prices comes to 3000$, S9’s price is less than 100$. Miners takes all the risk for the price going down, because the manufactory of BTC/BCH miner machines are limited and united. While the miner machines of PoC consensus does not have that problem, because the supplyment of hard disk is very sufficient, and the price is very stable.
Q28:- Why does Spockchain use POC and not POW or POS? Are there advantages of POC compared to POW and POS? There are many projects using POC such as: BHD, BSN, .... Is Spockchain different from these projects?
Ans:- 1. The main issue of PoW is that it’s energy waste and it limits the miners nowadays, people basically cannot mine any PoW coins at home, they have to buy equipments and send them to some place with lower-cost electricity power which makes difficulty to ordinary people. The biggest advantage of PoC is that it save tremendous money on electricity power.
The PoS basically cost nothing to generate new coins, I think it would also be problem for the price, as people get the coins so easy, they may not value it.
2.I have a list about PoC coins (the list is growing..) I do want to share some opinion about all these PoC projects including Spock.
I categorized the projects into two:
PoC consensus only: Burst/BHD/LHD/DISC/Boom/Newbi/Lava
PoC consensus + Smart Contract: Spock/BSN/Galaxy Network/EHD
For the projects in first list, these projects only talks about consensus and coins, but lack of usage and scenarios.
For the second lines, please check out and compare all the projects, none of them have launched the mainnet except SPOCK, while those projects started to mine with ERC-20 tokens.
I think the chanlledge is lack of acknowledge of Proof of Capacity consensus all over the world, the PoC introduce a new way to mine cryptocurrency, currently, Spock has a lot of miners in China, but not much in other places, spreading the consensus takes time. I think code/products shows hoesty and integrity, we have lots of plan to develop the network, while so many projects with similar ideas still runs on ERC-20, with time goes by, people will distinguish that.
Q29:- Currently, what are risks affecting the Spockchain project? In order to develop project in long term and attract investors, which method do you use to manage, minimize the negative impact of risks? I mean that, what are the risks and how do you deal with them?
Ans:- do you mean cheat when mining? First of all, you cannot have fundamental issue on the consensus basis, then if there is some way for smart miners to cheat to gain more rewards, we can update the full node program which can prevent the cheat. I think if that happen, community will support us to update the nodes in the network.
Q30:- How can a cryptocurrency mining algorithm be detected and prevented? What makes them so difficult to detect?
Ans:- According to the stats, 2016-2018, the supply of hard disk is 1.2billion, if we count as average capacity 4T, which is 48,000,000P, while currenlty the largest network with PoC consensus is BHD, which has capacity at about only 1500P.
submitted by Unity111-spock to SPOCK_Chain_Official [link] [comments]

Cosmos — an early in-depth analysis at the ecosystem of connected blockchains — Part One

Cosmos — an early in-depth analysis at the ecosystem of connected blockchains — Part One
This is part one of three articles where i will discuss what i have learnt whilst looking into Cosmos. I will provide links throughout the article to provide reference to sections as well as a list of sources at the bottom of the article for you to look into specific areas in more detail if required. Hopefully it will be useful for those interested in learning more about the project.
Cosmos is still very early in development process with components such as IBC which connects two blockchains together currently in research / specification stage, as a result can change by the time its released.

What is Cosmos?

Cosmos is a network and a framework for interoperability between blockchains. The zones are powered by Tendermint Core, which provides a high-performance, consistent, secure PBFT-like consensus engine, where strict fork-accountabilityguarantees hold over the behaviour of malicious actors. Cosmos is not a product but an ecosystem built on a set of modular, adaptable and interchangeable tools.
In Tendermint, consensus nodes go through a multi-round voting proposal process first before coming to consensus on the contents of a block. When 2/3 of those nodes decide on a block, then they run it through the state transition logic providing instant finality. In current proof of work consensus for Ethereum, the consensus process is inverted, where miners pick the transactions to include in a block, run state updates, then do “work” to try and mine the block.
Tendermint BFT can handle up to thousands of transactions per second (depending on the number of validators). However, this only takes into account the consensus part, the application layer is the limiting factor though. Ethermint (described below) has achieved up to 200 tps to give you an idea of the speed available per blockchain which is significantly more than current versions of Ethereum and Bitcoin etc.
The Tendermint consensus is used in a wide variety of projects, some of the most notable include Binance Chain, Hyperledger Burrow. It’s important to note though that just using Tendermint consensus doesn’t mean they can connect to other chains with the cosmos ecosystem, they would need to fork their code to implement IBC as a native protocol to allow interoperability through IBC.
see https://raw.githubusercontent.com/devcorn/hackatom/mastetminfo.pdf for high res

The Tendermint consensus algorithm follows a traditional approach which relies on all validators to communicate with one another to reach consensus. Because of the communication overhead, it does not scale to 1000s of validators like Bitcoin or Ethereum, which can have an unlimited number of validators. Tendermint works when there are 100s of validators. (Cosmos Hub currently has a maximum of 100 validators and the maximum tested so far with Tendermint is 180 validators)
Therefore, one of the downsides of a blockchain built using Tendermint is that, unlike Bitcoin or Ethereum, it requires the validators to be known ahead of time and doesn’t allow for miners to come and go as they please.Besides this, it also requires the system to maintain some notion of time, which is known to be a complex problem in theory. Although in practice, Tendermint has proven this can be done reasonably well if you use the timestamp aggregates of each node.
In this regard, one could argue that Tendermint consensus protocol is “less decentralized” than Bitcoin because there are fewer validators, and they must be known ahead of time.
Tendermint’s protocol guarantees safety and liveness, assuming more than 2/3 of the validators’ voting power is not Byzantine (i.e., malicious). In other words, if less than 1/3 of the network voting power is Byzantine, the protocol can guarantee safety and liveness (i.e., validators will never commit conflicting blocks at the same height and the blockchain continues to make progress).https://www.preethikasireddy.com/posts/how-does-cosmos-work-part1
To see the process of how Tendermint works please see this diagram as well as more info here

Sovereignty

Cosmos goal is to provide sovereignty through governance to developers by making it easy to build blockchains via the Cosmos SDK and provide interoperability between them, using Tendermint consensus. This is their main differentiator compared to competition like Polkadot and Ethereum 2.0. Ethereum 2.0 and Polkadot are taking a different approach by only using shared security, where there is a root chain which controls the security / prevents double spending for all connected blockchains.
In Hub governance all stakers vote, the validators vote is superseded if the delegator votes directly
Governance is where all stakers vote on proposals to determine what changes are implemented in the future for their own blockchain, stakers can either choose to delegate their vote to the validator or they can instead vote directly. Without sovereignty all DAPPs share the same underlying environment. If an application requires a new feature in the EVM it has to rely entirely on the governance of the Ethereum Platform to accept it for example. However, there are also tradeoffs to having sovereignty as each zone is going to need a way to incentivise others to validate / create blocks on the Zone by running Full Nodes. Whilst it may be easy to create a blockchain using the cosmos SDK and to mint a token, there are the legal costs / regulation associated with creating your own token. How are you going to distribute the tokens? How are you going to list them on exchanges? How are you going to incentivise others to use the token without being classed as a security? All of which have led to a significant reduction in the number of ICOs being done. With every zone needing their own validator set, there’s going to be a huge number of validators required each trying to persuade them to validate their zone with only a finite number of validators available.
Each Zone / App is essentially a mini DAO and not all are going to be comfortable about having their project progress been taken out of their hands and instead relying on the community to best decide on the future (unless they control 2/3 of the tokens). The Cosmos Hub has proved this can be successful, but others may be risk averse to having their application be a mini DAO. Should someone / competitor acquire 1/3 of the tokens of a zone then they could potentially prevent any further progress being made by rejecting all governance votes (this would be very costly to do on the Cosmos Hub due to its high amount staked, but for all the other less secure zones this potentially may be an issue).
Security for some zones will likely be a lot lower with every developer needing to validate their own blockchain and tokenise them with POS with no easy way to validate the setup of a validator to ensure its secure. Whilst the Cosmos hub is very secure with its current value staked, how secure zone’s will be with significantly less staked remains to be seen. Whilst providing soverignty was Cosmos’s main goal from the start, they are also looking at being able to provide shared security by having validators of a connected Hub also validate /create new blocks on the connected zone’s blockchain for them as well. They are still going to need some way to incentivise the validators to this. Another option is if the developers didn’t want to create a token, nor want sovereignty etc, then they could just build a DAPP on the EVM on a zone such as Ethermint.
As can be seen their are potential advantages and disadvantages to each method, but rather than forcing shared security like Ethereum and Polkadot, Cosmos is giving the developer the choice so will be interesting to see which they prefer to go for.

Layers of a blockchain

From an architecture standpoint, each blockchain can be divided into three conceptual layers:
  • Application: Responsible for updating the state given a set of transactions, i.e. processing transactions.
  • Networking: Responsible for the propagation of transactions and consensus-related messages.
  • Consensus: Enables nodes to agree on the current state of the system.
The state machine is the same as the application layer. It defines the state of the application and the state-transition functions. The other layers are responsible for replicating the state machine on all the nodes that connect to the network.
The Cosmos SDK is a generalized framework that simplifies the process of building secure blockchain applications on top of Tendermint BFT. The goal of the Cosmos SDK is to create an ecosystem of modules that allows developers to easily spin up application-specific blockchains without having to code each bit of functionality of their application from scratch. Anyone can create a module for the Cosmos SDK and using ready built modules in your blockchain is as simple as importing them into your application.
The Tendermint BFT engine is connected to the application by a socket protocol called the Application Blockchain Interface (ABCI). This protocol can be wrapped in any programming language, making it possible for developers to choose a language that fits their needs.

https://preview.redd.it/5vpheheqmba31.png?width=770&format=png&auto=webp&s=ec3c58fb7fafe10a512dbb131ecef6e841e6721c

Hub and Spoke Topology

Cosmos follows a hub and spoke topology as its not feasible to connect every zone together. If you were to connect every blockchain together the number of connections in the network would grow quadratically with the number of zones. So, if there are 100 zones in the network then that would equal 4950 connections.
Zones are regular heterogenous blockchains and Hubs are blockchains specifically designed to connect Zones together. When a Zone creates an IBC connection with a Hub, it can automatically access (i.e. send to and receive from) every other Zone that is connected to it. As a result, each Zone only needs to establish a limited number of connections with a restricted set of Hubs. Hubs also prevent double spending among Zones. This means that when a Zone receives a token from a Hub, it only needs to trust the origin Zone of this token and each of the Hubs in its path. Hubs do not verify or execute transactions committed on other zones, so it is the responsibility of users to send tokens to zones that they trust.
There will be many Hubs within Cosmos network the first Hub to launch was the Cosmos Hub whose native staking token is called ATOM. ATOM tokens are specific to just the Cosmos Hub which is one hub of many, each with their own token. Transaction fees for the Cosmos Hub will be payable in multiple tokens so not just ATOMs whereas other Hubs such as IRIS has made it so that all transaction fees are paid in IRIS for transactions on its hub.
As mentioned, the Cosmos Hub is one of many hubs in the network and currently has a staking ratio of around 70% with its token ATOM having a market cap of just over $800 million. IRISnet was the second Hub to launch which currently has around 28% bonded with its token IRIS which has a market cap of just under $17 million. The Third Hub about to be launched later this month has its token SENT which has a market cap of around $3.4 million. As you can see the security of these 3 hubs differ wildly and as more and more hubs and then zones are brought online there is going to need to be a lot of tokens / incentivisation for validators.
Ethermint
Standard Cosmos zones / hubs don’t have smart contract functionality and so to enable this, as the Application layer is abstracted from the consensus layer via ABCI API described earlier, it allows Cosmos to port the code over from other blockchains such as Ethereum and use it with the Tendermint Consensus to provide access to the Ethereum Virtual Machine. This is what is called Ethermint.
This allows developers to connect their zones to specialised zones such as Ethermint to build and run smart contracts based on Solidity, whilst benefiting from the faster performance of the tendermint Conensus over the existing POW implementation currently. Whereas a normal Go Ethereum process runs at ~12.5 transactions per second (TPS), Ethermint caps out at 200 TPS. This is a comparison against existing Ethereum speeds, whilst obviously Ethereum are working on their own scaling solutions with Ethereum 2.0 which will likely be ready around the same time. Existing tools / dapps used on ethereum should easily be able to be ported over to Ethermint by the developer if required.
In addition to vertical scaling (with the increase in tps by using Tendermint consensus), it can also have multiple parallel chains running the same application and operated by a common validator set. So if 1 Ethermint zone caps out at 200 TPS then 4 Ethermint zones running in parallel would theoretically cap out at 800 TPS for example.

https://preview.redd.it/e2pghr9smba31.png?width=554&format=png&auto=webp&s=a6e472a6e4a0f3845b03c36caef8b42d77125e46
There is a huge number of developers / apps currently built on Ethereum, should a developer choose to migrate their DAPP over to Ethermint they would lose native compatibility with those on Ethereum (except through Peg Zone), but would gain compatibility with those running on Ethermint and others in the cosmos ecosystem.
You can find out more about Ethermint here and here

IBC

IBC stands for inter-blockchain communication protocol and is an end-to-end, connection-oriented, stateful protocol for reliable, ordered, authenticated communication between modules on separate distributed ledgers. Ledgers hosting IBC must provide a certain set of functions for consensus transcript verification and cryptographic commitment proof generation, and IBC packet relayers (off-chain processes) are expected to have access to network protocols and physical datalinks as required to read the state of one ledger and submit data to another.
In the IBC architecture, modules are not directly sending messages to each other over networking infrastructure, but rather creating messages to be sent which are then physically relayed via “Relayers”. “Relayers” run off-chain and continuously scan the state of each ledger via a light client connected to each of the 2 chains and can also execute transactions on another ledger when outgoing datagrams have been committed. For correct operation and progress in a connection between two ledgers, IBC requires only that at least one correct and live relayer process exists which can relay between the ledgers. Relays will need to be incentivised to perform this task (the method to which hasn’t been established as of this writing)
The relay process must have access to accounts on both chains with sufficient balance to pay for transaction fees. Relayers may employ application-level methods to recoup these fees, such by including a small payment to themselves in the packet data. More information on Relayers can be found here

https://preview.redd.it/qr4k6cxtmba31.png?width=1100&format=png&auto=webp&s=d79871767ced4bcb0b2632cc137c118f70c3863a
A high-level overview of the process is that Zone 1 commits an outbound message on its blockchan about sending say 1 x Token A to Hub1 and puts 1 x Token A in escrow. Consensus is reached in Zone 1, and then it’s passed to the IBC module to create a packet which contains the reference to the committed block, source and destination channel/ connection and timeout details and is added to Zone 1’s outbound queue as proof.
All relayers (who run off-chain) are continuously monitoring the state of Zone 1 via the Zone 1 light client. A Relayer such as Relayer 1 is chosen and submits a proof to Hub1 that Zone 1.
Hub 1 then sends a receipt as proof that it has received the message from Zone 1, relayer1 sends it to Zone 1. Zone 1 then removes it from its outbound queue and sends proof via another receipt to Hub1. Hub1 verifies the proof and mints the token.

https://preview.redd.it/qn7895rumba31.png?width=770&format=png&auto=webp&s=96d9d808b2284f87d45fa0bd7b8bff297c86c2da
This video below explains the process in more detail as well as covers some of the other points i raise later in this article so worth a watch (time stamped from 22:24 to 32:25) and also here from 38:53 to 42:50
https://youtu.be/5h8DXul4lH0?t=1344
Whilst there is an option for UDP style transfer where a zone will send a message to a Hub and it doesn’t care whether it gets there or in any order etc, Token transfers are going to require the TCP style connections in IBC where there is a send, receipt and then another receipt as explained above. Each Send, receipt followed by another receipt is going to take at least 2 blocks and so using Cosmos Hub block times as an example with 6.88 second block times a transfer between one zone and hub could take a minimum of 41.28 seconds. You also then have to factor in the amount of other transactions going through those at that time and relevant gas price to see whether it is able to use 2 consecutive blocks or whether it may take more. This is also explained in this video “ILP Summit 2019 | Cosmos and Interledger | Sunny Aggarwal” (time stamped) from to 12:50 to 15:45

In Part Two we will look at potential issues with multi hop routing, token transfers across multiple routes and Peg Zones, whilst also looking at other interoperability solutions that would resolve some of these issues and compliment the cosmos ecosystem. Part Two can be found here
submitted by xSeq22x to cosmosnetwork [link] [comments]

Cryptocurrencies and their Characteristics

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Get familiar with Ethereum, its founding principles and major improvements/limitations upon the initial Bitcoin Blockchain!
Did you know that due to the nature of the cryptographic community from which cryptocurrencies have been developed, it is only natural that the adoption of cryptocurrencies in the digital sphere has dwarfed that in the traditional business world? Cryptocurrency adoption has firmly permeated the online gaming sphere with offerings such as Experience points (XP) for purchasing incentives in games and educational content, as well as GameCredits (GAME), which aims to be a universal currency for gamers worldwide and STORM, a kind of Blockchain Mechanical Turk, a crowdsourcing Internet marketplace. In the online gambling space, Funfair (FUN) aims to be the go-to currency for all online gaming, and Edgeless (EDG) supposedly offers a gambling experience with no edge for the house, a project all gamblers would surely welcome and support.
Cryptocurrency projects have already provided use cases for conventional businesses and enabled existing commercial operations to improve their performance with the implementation of Blockchain technology. Thus far, Bitcoin is the cryptocurrency that has most readily made inroads into the public consciousness. Microsoft, for example, has begun to accept Bitcoin payments in Windows and XBox stores, and Expedia has teamed up with Coinbase to allow Bitcoin to be used to book hotel rooms. Much like Iconomy in the crypto asset management sphere, NapoleonX (NPX), is allowing crypto investors to buy into Decentralized autonomous funds which focus on conventional markets. As we have already covered, one of the main reasons that Blockchain technology is causing so much excitement is because of the great number of ways the technology might be developed and applied in business.
The Canadian-Russian boy genius named Vitalik Buterin first envisaged the next stage in Blockchain technology as a scripting language for Bitcoin. But this particular idea failed to reach a consensus with the community. That is what stimulated development of a totally new platform with a more general type of language. Initial development on the Ethereum project began in Spring 2014 with the core team of Vitalik Buterin, Mihai Alisie, Anthony DiIorio, and Charles Hoskinson, working through the Swiss company EthSuisse. Subsequently, the Ethereum Foundation was created in the run up to the July 2014 crowd sale. Then, the Ethereum project’s currency Ether was distributed to participants who purchased the token with Bitcoin.
The initial questions about the security of the project were proven to be warranted after an infamous entity called the DAO (Decentralized Autonomous Organization) led to the loss of $50 million of the $150 million dollars raised in the Ethereum crowdsale. The Ethereum Blockchain then underwent a very contentious hard fork resulting in the Ethereum, ETH, we know today being separated from its parent chain, Ethereum Classic, ETC. By the end of 2016, the Ethereum Blockchain had forked twice more resulting in increased DDoS protection, that de-bloated its Blockchain, and thwarted further spam attacks by hackers.
The true cost of the financial crisis for the world economy is still being calculated and may never actually be known, but conservative estimates put the cost at approximately $20,000 per America citizen. Satoshi Nakamoto, the anonymous creator of the most famous and infamous digital currency, sought to create a means of transmitting value that did not require a trusted third party to oversee the transaction or guarantee the value. By using distributed ledger technology on the Blockchain he laid the foundation for a trustless decentralized financial system that did not rely on central banks to mediate transactions. This is a “peer-to-peer version of electronic cash…. sent directly from one party to another without going through a financial institution”. With no trusted third party, each individual becomes a self-sovereign, one-person-bank, responsible for his or her own transactions and security.
The Ether token’s authenticity is guaranteed by its Blockchain, which is a continuously growing list of records connected and secured using cryptography. Like Bitcoin, the Ethereum Network is an open and distributed ledger that records transactions between two people in a confirmable and permanent way. The Ether token is superior to bitcoin in that its blocktime is approximately 15 seconds compared to 10 minutes with Bitcoin. Mining generates new coins at a usually consistent rate, and the average transaction cost in December 2017 was $0.33 compared to $23 for Bitcoin. As alluded to above, Ethereum initially aimed to become both a decentralized internet and a decentralized app store supporting a new kind of app (dapp). In order for the network to function correctly, a novel piece of code “ether” was created in order to pay for the computational power needed to run an application on the Ethereum network. Ether is a digital bearer asset like BTC, and does not need a third party to verify or mediate transactions. “ERC-20 Token: The Ethereum Request for Comment -20 token is standard set of rules used for smart contracts on the Ethereum Blockchain for executing new tokens. It defines a uniform set of rules on how a new token will function within the Ethereum Blockchain. The creation of this token has made it very easy for start-up companies to create their own token within the Ether ecosystem. That was a very significant advancement that caused the 2017 ICO boom in newly issued tokens.
Monero: This fork of Bitcoin is focused on privacy and decentralization. It obfuscates the sender and recipient’s addresses, as well as the amount of the transaction. The original Monero (the name is Esperanto for “coin”) author, Nicolas van Saberhagen, sought to make mining rewards more egalitarian as an additional benefit of being part of the Monero ecosystem. The very private nature of the Monero architecture, which mixes sender “ring signatures” with many others, makes the deciphering of the destination and recipient address increasingly difficult. This has made the Monero cryptocurrency the go-to coin for illicit transactions on the Dark web. There is, however, another way to look at this. Although Monero’s intensely private nature and deliberate obfuscation of transaction destinations and sources is undoubtedly used for criminal and corrupt purposes, the exact opposite effect may occur if its privacy characteristics are placed within the context of third world countries where corruption is already rife. In developing countries, it has proven much easier for people to obtain devices with an internet connection than it is for them to open a bank account. With 2 billion people worldwide without a bank account, much of them in Sub-Saharan Africa, privacy coins like Monero could play a key role in distributing aid to the needy without having to deal with any potentially corrupt and inefficient organizations or state institutions standing in between.
Ripple: Ripple is well-known as one of the very first big Blockchain projects. In fact, its predecessor, RipplePay dates all the way back to 2004. The modern version of the Ripple payment protocol (conceived by Jared McCaleb and built by Arthur Britto and David Schwartz) enables instant peer-to-peer transfer of money. The protocol and the facility to avoid the banking system, results in drastically reduced fees and transaction times compared to international transfers by conventional banking methods. Ripple is currently known as the cryptocurrency of the financial services industry, with major involvement by Santander, American Express and RBS, amongst many others. Ripple has also teamed up with Moneygram to speed up the process of cross-border payments. Ripple is aiming to send money across national lines “as quickly as information” in the words of its CEO Brad Garlinghouse. The almost laughable inefficiencies and delays in sending money to friends or loved ones in foreign countries is a major pain point for banking customers the world over. Now, with the implementation of Blockchain technology through Ripple’s XRapid initiative in partnership with Moneygram, international transfer times will go from being measured in days to being measured in seconds.
NEO: This is often described as the “Chinese Ethereum”. NEO is similar to Ethereum in that it is a Blockchain platform that is designed to be a scalable platform for the construction of decentralized applications. The NEO Blockchain project was founded by Da Hongfei in 2014. Like Ether (ETH) in the Ethereum network, the NEO token is the base asset of the NEO Blockchain. But unlike Ether, it is indivisible, and it accrues a GAS token when stored in a wallet. The GAS token can be used to pay transaction fees on the NEO Blockchain. The NEO cryptocurrency was rebranded from Antshares in 2017, and has started to produce highly successful ICOs on its platform, most notably Ontology (ONT) and RPX which will make use of the NEP-5 token. In the immediate aftermath of rebrand from Antshares, the all-encompassing vision of NEO 2.0 was laid out as follows: “We hope the platform can be used for different front-end scenarios, such as the Digital asset wallet, Forum, Voting, Profile management and Mobile applications. The platform also features an open API that can be used for integration with other systems.” One of the main alterations made to the NEO project was the addition of more up-to-date digital identity management protocols which employed Public Key Infrastructure(PKI)X.509 digital identity standards. NEO’s verification of identity when issuing digital identities includes fingerprint, voice and facial feature authentication methods.
IOTA’s code architecture is not in the same mold of Bitcoin or Ethereum, both of which could be described as existing on and making use of a Blockchain to order their transaction history. IOTA, and its token, the MIOTA, are embedded in a code structure called “The Tangle” which is a form of Direct Acyclic Graph data architecture. This particular architecture enables the code to function with no fixed block and each transaction carries its own proof of work. These types of transactions are enabled by “storing the most recent transactions in a fast cache, and by using checkpoints such that older transactions cannot be references. Thus, the system can be made as fast as Bitcoin, or faster”. IOTA’s main use case is for the transmission of information and value between Internet of Things enabled devices, in an automated manner. This project is truly one oriented toward the future, when many more IoT devices will be online, and there is a great need for such devices to communicate and transact without any human intervention. One weak point in DAG code architecture is that much less than a 51% attack is sufficient to compromise the network. It would be theoretically possible to bring about double spending on a DAG network with a 34% attack.
TenX (PAY) TenX was founded in 2014 as part of a PayPal incubator program. It sought to bridge the gap between Blockchain assets and everyday commerce, providing an efficient solution for the liquidity problems of many cryptocurrencies. The project will eventually be centered around a debit card that makes use of the COMIT protocol that enables many different Blockchains to interact with one another without having to issue a different token. That could be another milestone event in the crypto ecosystem. The project roadmap presented to investors began with the ICO in July 2017. They famously raised $34 Million in the first 7 minutes. The roadmap will conclude when they obtain their banking license in the middle of 2020. At that point they also aim to issue FIAT tokens fully backed and issued by a government. So far, the TenX project is on course to meet its stated targets. They brought out their highly rated IOS and web apps at the end of 2017. This serves as a fantastic example of how a well-run ICO can help both the investors and the startup streamline the capitalization process to the benefit of all parties involved.
Influence upon Traditional Merchants around the world. Due to the inherent volatility of cryptocurrency, the adoption of crypto payment methods by traditional businesses has generally been slower than in the online sphere. Although some major companies have in fact begun to come around to the idea of integrating digital currencies into their methods of accepting payments, the volatility of crypto is still a serious impediment for most. Microsoft has led the way by incorporating Bitcoin payment systems into the Window Store, as well as adding the ability for game players to purchase credit on the Xbox live network with Bitcoin. Overstock began accepting Bitcoin payments on January 9th, 2014, and saw a significant uptick in orders immediately. They received 900 new orders for $126,000 worth of BTC. Electronic retailer NewEgg, and online gaming site Zynga, also now take Bitcoin payments. There are even certain Subway outlets in South America that have started to accept Bitcoin as a method of payment too. On a far smaller scale, Coingate has partnered with Prestashop, to take Europe to the verge of a widescale cryptocurrency payment method. Merchants of any size need only apply for a Coingate account, and then have a crypto payment module installed, in order to accept payment in Bitcoin, BCash, Ether, Litecoin and nearly 50 other cryptocurrencies. The price is locked in immediately at the time of the transaction, which solves the volatility issue, and the whole process can be completed without the merchant having to deal in anything other than Euros. CryptoCredit card projects Monaco and TenX help to bridge the gap between the worlds of fiat and crypto, allowing a card holder to spend their cryptocurrency anywhere in the world.
Decentralization & Our Financial World In the Financial World, decentralization would radically alter the roles of, and creation of value by, our modern day ‘too-big-to-fail’ financial institutions. The capping of the supply of most major cryptocurrencies is itself an idea nothing short of revolutionary, in the truest sense of the word. All developed economies are oriented around a Central Bank that, through the system of fractional reserve banking, has power to create loans or investments and accept deposits, but is only required to hold reserves equal to 10% of its total liabilities. This in effect empowers central banks to print money as they see fit, a mechanism which gives central banks massive power in contemporary society. Any move toward decentralized ledgers, and any number of finite decentralized currencies, would upset the balance of power between central banks and the individual in a way that has never occurred before. The role of central banks in the economy, and the traditional means of solving common financial problems by having the central bank manipulate the money supply, for example, would need to be radically rethought. Consider the recently used machinations such as quantitative easing, negative interest rates, etc. These are present-day “solutions” that would no longer be able to be applied to the economic and financial problems they are attempting to solve.
If Blockchain technology was meaningfully deployed in the political arena it is conceivable that political corruption and vote-rigging could be severely curtailed or even eradicated. By providing a clear, transparent and incorruptible method of vote recording and counting, voter fraud and election rigging could be eliminated. The political climate could be detoxified and faith could be restored in both fledgling and established democracies. The idea of being able to present a publicly available digital ledger would allow journalists to maintain lists of sources that would be able to be shared between peers without compromising the source’s identity. The possibilities for the application of the Blockchain founding principles are truly revolutionary and just may be the largest leap forward for society since the computerization of the work force or the globalization of trade. The Cryptocurrency Ecosystem Overstock is a large e-commerce company that has successfully adopted a Blockchain solution for its business needs. The Silk Road was one of the most widely known early beneficiaries of the mass adoption of cryptocurrencies. Purpose of Cryptocurrencies -Ethereum was developed after the original creator’s suggested changes to Bitcoin were not implemented by the community. -Ethereum is a completely separate cryptocurrency. -DAO Hack & the Ether Token. -Monero, Ripple, NEO, Stellar & Iota. -Microsoft has begun to accept Bitcoin on the Xbox live network store.
If there is a wide-scale expansion of the mechanism of asset-tokenization we could see stocks, bonds, synthetic instruments and commodities being brought on-chain in the future. This would allow traditional assets to be easily integrated with smart contracts, and facilitate their interaction. This would cut down transaction times, and even more importantly, dramatically slash legal fees to a fraction of what they are today. It can cost up to $1,000 an hour or more to hire corporate lawyers to preside over a deal, draft contracts, or give advice on the intricacies of high finance. So, the potential savings involved for big businesses, if smart contracts and asset tokenization became the norm, is an amazing thing to think about at this time. The ASX is the first exchange in the world to implement a solution that would change the settlement of equities transactions from two days, to mere minutes. This radically changes how traders on both the buy and sell side, as well as companies, would be able to trade their securities, manage their risk and leverage their positions.
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The Blockchain Industry

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My name is Alexey Adylshin, I am backend developer at Platinum, the largest listing service provider for the STO and ICO projects. We know how to start ICO/STO campaign in 2019 and make it successful!
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Today I want to tell you about popular ICO business modules and blockchain use cases.
Trust & Reputation in the Blockchain Industry
Personal trust matters a lot in the Blockchain Industry. The investors, team members, advisors or exchange staff may know each other from working together on other projects. It is important you conduct yourself in a professional manner and treat people the way you want to be treated. Maybe we can say the crypto world was first populated by computer geeks and cypherpunks in hoodies. And that is perfectly okay; but it surely has evolved since then. The culture is more complex today. Serious money is involved. Sophisticated investors and money managers command large pools of capital. Everyone has expectations of an appropriate degree of professionalism. Your reputation, behavior, and character are important. You clearly want to distinguish yourself from any of the scammers and frauds in the Blockchain industry.
Major Roles in the Blockchain Industry
There are many specific job titles in the industry. We will focus on the major ones. But you will most likely wear a few different hats anyway. Just like in the real world, you will have to do different jobs at different times. Broadly speaking, there are seven major roles in the Blockchain Industry relating to ICOs: -Legal. -Marketing/PR. -Accounting. -Financial. -Business Development. -Advisors. -Technical Experts. There are of course many other roles covering every imaginable area, just as in the traditional world. But it is most important to focus on roles as they relate to ICOs.
Legal
In the blockchain industry, it is the responsibility of legal to ensure compliance with all contractual and statutory requirements in each jurisdiction. Even though it can be said that crypto and blockchain are still unregulated in some cases, and inappropriately/ineffectively regulated by traditional banking or securities laws in other cases, there are significant and unavoidable legal implications of using blockchain technology. Consider the digital enabled signature legislation. This enables digital signatures to be recognized internationally, thereby validating and authenticating transactions. Nevertheless, some transactions are still accompanied by other legal documents as well. Someone must be responsible for any such legal functions. And someone must also perform as an advocate and representative for the project. The legal advisor will typically come from a background of legal practice in his or her own jurisdiction. They can often provide a bridge to the traditional business world. Lawyers are generally paid just as well in Blockchain as they are in traditional business, though they probably have greater freedom and flexibility in here in crypto.
Marketing/PR
The role of Marketers and PR professionals closely mirror that of real world marketers and PR pros. Their primary role is to increase public awareness about the ICO project, and shape the narrative of the company. Primarily they will highlight the key benefits of the company solution and ensure this information is presented to the most important people. Marketing/PR in the crypto world is almost entirely digital. Social Media, Telegram Channels, Medium Blog Posts, Email Marketing, etc. are all the main forums and means of professional communication in crypto. Marketing/PR individuals are typically compensated based on their experience and contribution to the company. A marketer who is able to demonstrate significant upticks in engagement, investor interest, etc. will of course be paid well. Marketers who command a valuable audience will demand a greater fee. This role is one of the most sought-after and well-paid, due to the great amount of “noise” considered appropriate in the cryptocurrency industry.
Accounting
Accounting roles are responsible for managing company finances, just like in traditional business. They do all bookkeeping work involving cryptocurrency transactions, as well as basic fiat currency transactions, and any exchange interactions and other transactions. Projects utilize major accounting software like QuickBooks, software which allows for computerized accounting, and payroll professionals, to perform regular tasks involving invoices, sales, purchasing records, and balance sheet reporting. Just like in a traditional organization, the accounting team monitors and maintains records of all financial transactions and investments. They ensure that specified budgets are followed and expenses are not surpassed. In so doing, they keep project expenses in-line with company objectives. They also might identify or evaluate business opportunities, and advise the project team about such investment ideas. They will often be compensated based upon experience and the significance of their particular contribution to the project.
Financial
A financial role in an ICO company can be one of the most engaging, but can come with great responsibility. Your role will focus predominantly on the management of company finances. That is a purposely general description because it is a position that covers a broad range of responsibilities. One day you might be coordinating with the founders and the business development advisors about the business model and the direction of the project. The next day you may be helping the founders explain to seed investors why you need capital to remain solvent. Then you may be tasked with investing the funds raised from the ICO into other cryptocurrencies to diversify the risk profile of the company finances. In the traditional market, finance jobs are very well remunerated. In the cryptocurrency space, you are of course rewarded based on your experience and contribution. However, the amount of responsibility you take, and your ability to be flexible and quick on your feet, can often command premium compensation.
Business Development
Blockchain business development professionals perform a variety of roles, typically structured around strategy and business ideas. Business development individuals will usually collaborate with every member of the team. Their contribution is not strictly defined by any kind of tangible work, such as writing code or producing graphic design, but rather by the idea of creating a general direction and manner in which the business can achieve its vision. They are responsible for structuring the company’s model, its roll-out plans and key objectives along the timeline. Often the founders of the company will be the ones to focus on Business Development because they have the strongest grasp of the magnitude and nuances of the project and its product. Business Development professionals also are often remunerated based on relevant experience, and their contribution to the project.
Advisors
Businesses that intend to launch new blockchain projects frequently seek guidance from more experienced advisors. These are people who can offer first-hand information, direction and contact with relevant parties. This kind of advice and ability to give you introductions can be crucial to the success of your project. The role of advisors cannot be easily overstated. The title may sound vague and ambiguous, because it is. But it is a role that covers a lot of very important areas. An ICO might have great financial wizards on its team. They might be incredibly talented at creating their unique product, ecosystem and solution. They have their Blockchain technical expert who can replicate and create the system on the Blockchain to anchor their project. But without effective marketing, without connections to investors, traditional companies, and governments, the whole project is dead in the water. Advisors play a crucial role. It is a role that should be appreciated, and used for all it is worth. In the Blockchain industry, we broadly define and divide advisors into two major categories, Portfolio Advisors and Domain Experts.
Major Roles in the Blockchain Industry
Portfolio Advisors : Would not contribute strategy or give serious feedback as much as help facilitate good personal interaction with the press and other key partners. A Portfolio Advisor can also be an invaluable conduit to explain things to investors or the press. The Advisor is a good person to explain team decisions in the event of both good and bad news. Crypto and Blockchain projects use advisors to improve their business reputation and industry image, and to make their ICO company appear more serious and professional than it would otherwise appear. As mentioned, the advisor does not necessarily do any actual work such as coding. The Portfolio Advisor is more of a figurehead and professional conduit for the ICO, with a wide range of advisory functions and roles. Compensation for the Portfolio Advisor is often directly proportional to the specific utility to the company or the size of the role. An advisor who brings in half of your ICO funding in pre-sale will of course demand a much larger fee than someone who simply connects you with a few partners who might possibly be useful sometime in the future. A good advisor can earn up to tens of thousands of dollar, or even more.
On the other hand, Domain Experts provide the kind of input you would expect. They give practical and strategic direction to help the business be more successful and achieve its objectives in a timely fashion. These advisors can be expert in Cryptocurrency or expert in another related specialty. Typically, Domain Experts will already have significant exposure to the cryptocurrency industry, and a valuable understanding of how things operate. Although, due to the rapid growth in the industry, there are many new advisors and experts specifically brought in for a particular reason, so it may in fact be their first interaction with a Blockchain company. Domain Experts could have experience as diverse as healthcare, finance or gaming. Generally speaking, their contribution to the team will be focused solely within their area of expertise. As with Portfolio Advisors, Domain experts are compensated based on their experience and specific contribution to the project. But many ICOs will try to bring the two roles together. They will ask a well-known, highly-regarded Domain Expert to also appear on the website and help build the overall professionalism and reputation for their project, just like the Portfolio Advisor would do, as well as contribute their Domain Expert knowledge to the project.
Technical Experts
Did you know that there are certified blockchain experts (CBE)? The Blockchain Council is a certifying body that helps businesses, developers, and all interested individuals to become educated about the Blockchain industry. Technical Experts are specialists with in-depth knowledge and understanding of what the Blockchain is and how it can be utilized by businesses to maximize their potential. They are often the individuals who design the framework of the Blockchain solution, write the associated code, and debug as necessary. These experts are also able to certify other individuals in the Blockchain discipline of Distributed Ledger Technology from a vendor-neutral perspective. One of the most notable technical experts in the Blockchain network, is the well-known creator of Ethereum, Vitalik Buterin. Vitalik Buterin created Ethereum, and ETH, the world’s second most valuable, massively traded cryptocurrency. In 2011, the team founded the Bitcoin magazine which publishes information about the Blockchain technology.
Exchanges
While not a part of our original list of positions and functions, Exchanges perform a central role with every ICO and Blockchain solution. If you are an ICO company and want to facilitate a market for your token (you always do, your investors will demand it) then you need the exchanges to provide this service. Exchanges, as we have discussed before, provide the market, the liquidity and the compliance with the necessary regulation/KYC requirements. After the ICO fundraising has been completed, the company’s token/coin begins trading on an exchange. Working on an exchange is another important career option in crypto that should not be overlooked. Exchange professionals may not earn as much as some of the other positions, (unless they also own an equity stake in the exchange), but they are still well-compensated for their technical knowledge and the sensitive nature of their job.
The Interaction of the Roles
People in all of the positions and roles we are talking about will need to work together and communicate with each other at various times. To start and grow a company from an idea or vision, to a tangible thing, is quite a tricky feat. Sometimes the technical experts will need to sit down and explain something to the business developers. The marketers might need clarification how the underlying technology works. Similar to real-world business, something many of us already know from experience, the management structure of a company plays a large role in how people in different positions interact while performing their jobs. If the company is particularly hierarchical, management might insist on going through specific touchpoints when sharing information, thereby allowing management to add their own input. Other companies will be comfortable with marketers and technical developers just speaking amongst themselves to achieve the agreed upon end goals of the business. Cryptocurrency projects often tend to become a special collection of especially talented people from all over the world. Management takes on a somewhat different role in the cryptocurrency space. It is important when you start on a project to be clear about how you should communicate with other team members, the channels of communication and the expected manner of interaction too. Some teams prefer to keep things quite informal, sharing gifs and memes to each other, while others prefer conversation on company channels and a strictly professional style.
Pre, During & Post ICO Business Roles Pre-ICO Launch
This period is the same for all new companies. This is when the foundation of the business is formed. The idea is validated. Initial development begins, and the team is assembled to start building the company. For an ICO destined company, this period includes where the idea is placed upon the Blockchain, and the use case created. Ideally, the idea should require the Blockchain to function, or at the very least, require Blockchain technology as the most suitable option. One of the first things an investor should do when they look at your project, is evaluate the need for a Blockchain solution. That is exactly what you should do first too. Your team should thoroughly inspect all possible technology options to equip your business with the best framework or “backbone”. You should look to justify the positives and negatives of each framework before landing on the most suitable solution. For an ICO, this needs to be a Blockchain based solution.
Pre-ICO Launch
The next step is of course researching the competition. With so many ICOs recently it is important to consider who else is active in this space. Who has had or done the same idea before? How is your company different? Why should someone invest money in your company, in your idea, as opposed to the other available options? You should then identify the major challenges your business is going to face. The application of Blockchain technology is so wide and organic to a lot of industries, it’s important to fully analyze and develop your idea for the real world. Do not just assume the Blockchain is going to do anything you want and solve every problem for you. After identifying your needs and challenges, the next step is to look for information about Blockchain technology that does solve your specific problem. This is often a combination of a few different roles working together. Your business development, technical specialist, and marketer as well as perhaps your financial people should all be involved. All positions can and should conduct research, envision areas of opportunity, and predict associated challenges to be met. After doing their research, your team should be able to make an intelligent decision on the path to take. You should have a good sense of where that leaves you, from a business development standpoint, a technical standpoint, and a fund-raising standpoint as well. At this point, you will need to organize and arrange all of your business roles and services to suit the company’s direction from now on. You are also likely to need to bring new people onboard to continue to grow and progress down your chosen path.
During the pre-ICO launch, a timeframe is set with company goals. One of the components of a pre-ICO launch is to design and launch your website, which serves as the point where investors go to obtain information about the project. Basically, the website will provide a link to the whitepaper, it will show the members of the team, and it will show the timeline of the project. The success of any pre-ICO launch depends on how well the project is able to pitch to investors about the necessity of the product and the use case of the Blockchain. All of this information is normally available on the project website, and it serves a dual purpose, the latter being a Marketing strategy. The website provides an extremely useful central point of focus for everyone. Your marketers can use the website to refer investors or potential team members. Your company can use your website in meetings with partners, advisors and regulators to demonstrate authenticity and professionalism. You have formed your team and your idea. You have made an operational website and a full series of marketing materials. You are ready to present your idea to the world. In the cryptocurrency world, this involves placing ICO announcements on websites specifically targeted toward cryptocurrency investors and professionals. Utilizing social media like LinkedIn and Medium will enable you to reach out to more people and increase participation and hype surrounding your pre-ICO launch.
During the ICO, your project would have generated tokens which will be used in exchange for Bitcoins, etc. Creating a token virtually means producing an asset that your business needs to survive, an asset with which it can conduct transactions. Tokens can represent digital coins, loyalty points, gold certificates, IOU’s, in-game items. The majority of tokens should perhaps not be thought of as shares in a company, as in a traditional IPO, but rather as utility tokens with a value dependent upon and derived from the token’s utilization in the company solution. Some projects will begin to sell these tokens (usually a specified amount) during the pre-ICO period, typically in what is called a “pre-sale”. Pre-sale tokens are usually offered to team members, advisors, large investors, key partners, etc. as a way to both invest in the future of the company, and to reward the people involved. The pre-sale tokens are almost always offered at a discount, and come with a vesting schedule. A projects’ next step will then be contacting and building relationships with exchanges. As previously discussed, the cryptocurrency exchange provides the means through which people are able to buy and sell the project tokens on the open market. Recognition and acceptance by the largest and most reputable exchanges matters a lot. Being listed is an efficient way to raise funds, attract new investors, and incentivize your current investors. Many investors will require you to detail your plans for getting listed on an exchange before they even invest in the pre-sale. Investors will not see any value if there is no listing, no exchange, and therefore no liquidity for that token.
During an ICO
A comprehensive list of exchanges can be found on Best Bitcoin Exchange. Most tokens will also be listed on CoinMarketCap, which is essentially a stock ticker of token sales. Tokens are listed and ranked according to the success of their ICO project. When an ICO project begins to fail, or fall below target, its ranking on the list decreases and ends up at the bottom, or the token becomes delisted entirely. The actual process of listing a coin on an exchange varies significantly by the site. Most exchanges like Bittrex and Poloniex strictly forbid tokens that could be considered a security. Building hype during an ICO project is all about gaining popularity. With the large number of ICO projects coming up every day, you need an effective strategy to help your ICO project stand out. A strong Marketing & PR team should be focused on the main avenues of communication. Identifying avenues of Communication The first step is to identify the best social media channels to reach out to a large number of relevant audiences. Twitter and Facebook are most often used to advertise projects. Facebook offers various opportunities you would not want to neglect. Browse through different Facebook communities, as well as web resources like helpareporter.com, those frequented by experts, journalists, etc. in order to understand the message content they like to see and the information they think is important.
Being in Touch with the Audience After you have identified your audience, maintain contact with them before the ICO, and throughout the entire process. Slack and Telegram are two extremely common ways to stay in touch with your investors and the community at large. You may also use forums like Bitcointalk and Reddit. It could be very wise to hire a specialist to engage in discussions about your project at this point. A forum debate is valuable interaction with the audience allowing you to get feedback from investors in the ICO and future users of your product. Create a Bounty Program A Bounty program is a strong and powerful means to build hype for the ICO project. It is an effective way to attract the attention of investors to your ICO; and a good rewards program to incentivize freelancers to promote your project out into their network. Rewarding users for signature campaigns on bitcointalk, email subscriptions or blog posts may be some of the best ways to broaden your investor audience.
Investor Roadshows
During this period of building hype for your ICO, you can identify and meet with potential investors in your project. This is a crucial step for your ICO and is incredibly important. This should in fact become top-priority for all of your team members. Investors will want to talk with every member of the team and ask very specific questions relevant to their domain of knowledge. The investors are thinking about their return. It is important to develop a profession level presentation. Clearly define expectations for the project. Illustrate your projections with good charts and visual aids supported by relevant independent analysis as much as possible. Be prepared. This information should be available to you at any time. You should always be ready to deliver a sophisticated presentation to potential investors. It is also smart to talk about other ways an investor will benefit from your project, other than the financial gains. You can think about it, and research for good ideas. At this stage, it is also important you already know what the hardcap of your coin will be, as well as its circulation. This amount should be fixed and specified before you launch your ICO. The coin distribution can never exceed this specified amount.
There are three key attributes which investors assess before investing in an ICO.
Circulating Supply
This is the number of coins that have been freely floated and are available in the market. In some instances, projects could have all their tokens pre-mined, and released all at once through the ICO. The circulating supply will, therefore, be the same as the maximum supply. Other times, tokens have to be mined over time, or coins are released on a specified schedule. As discussed earlier, this strategy can help maintain the value of the coin.
Total Supply
This is the number of coins that actually exist, including the ones that are not in circulation. Why would coins exist but not be in circulation? It could be for a number of reasons. A team might have mined coins but held them back without putting them on the market. Team members, advisors and pre-sale investors are required to hold their portion of the ICO for a specified number of months to prevent coins being dumped at listing. The coins, therefore, exist, but are not yet in circulation.
Maximum Supply
This is also known as the hardcap. This number is of paramount importance because this is the maximum number of coins that will ever be created (Bitcoin’s hardcap is 21,000,000 tokens.). Not all cryptocurrencies have a hard cap. Ethereum, for example, has no maximum supply limit of Ether.
Why is the hardcap important?
There are two fundamental reasons to support an established hardcap. The first has to do with scarcity. Just like diamonds. They are not only valuable for their beauty and strength. They are also valuable precisely because they are scarce. The scarcer they are, the more valuable they become. It’s the same with cryptocurrencies, simple supply and demand. If there is a finite supply of a particular token, the value of the coin is likely to increase over time. This will in turn ensure the integrity and value of the underlying network. When the hardcap is extremely low, you won’t be able to obtain enough funds to develop and grow the network. On the other hand, if the network is flooded with tokens that don’t have a purpose because the hardcap is excessively high, the value of the coin will become diluted, causing a drop in the integrity and value of the network. The second reason the hardcap is important is closely connected to the project roadmap. For every amount raised, the startup should make sure there is an explicit and concise purpose for those funds. Basically, “if we raise so much, then this is the plan. If we raise more, than this is this plan, and this is how we will use the funds raised.” However, we’ve seen projects raising hundreds of millions of dollars with no set objective of what to do with all that money. There have been instances of startups setting a funding target of $20 million, but then they go on to raise over $200 million because they didn’t set a hardcap. That means there is no predetermined plan for the excess $180 million.
Post ICO
After the successful completion an ICO, it is time to kick-start the project. Immediately execute plans from the white paper and purchase lists. Move as quickly as possible to bring your company to life. Let’s take another look at an example of a successful ICO we have discussed before.
Tezos
The project was able to generate a total of $232million within three months of the ICO launch. The token created for the project was called ‘XTZ’ and the value for one XTZ was evaluated at: ICO Token Price: 1 XTZ = $0.47 XTZ token price max = $11.21 XTZ token price min = $1.76 XTZ token price to 07/01/2018 = $5.82 Returns since ICO (USD): +1,138% Tezos After the successful completion of the ICO launch, Tezos quickly activated their technology which is intended to compete with Ethereum, and simplify launches for new projects. Nevertheless, the project encountered a major setback. Two lawsuits were filed against Tezos claiming they violated both US Federal and State law. The Tezos tokens were qualified as securities. Therefore, by not registering them as securities, the company violated the securities laws. The project was also accused of fraud based on the premise that the tokens had been distributed under the pretense of being charitable contributions.
Bancor
The Bancor ICO project was aimed at introducing a convenient way to issue smart-tokens and convert them without a counterparty. After the ICO, the project made some good progress, launching its app in beta mode. Presently, the app has been fully developed such that it is able to convert 14 cryptocurrencies including ETH and BTN tokens. The ICO raised $153million from the sale of their tokens. The breakdown of the value of the token during ICO and after is shown below: ICO Token Price: 1 BNT = $3.92 • BNT token price max = $8.17 • BNT token price min = $1.52 • BNT token price 07/01/2018 = $8.17 Some projects, like Bancor, remain successful after their ICO; while some, like Tezos, fail. It is not enough to plan for an ICO project simply by investing in publicity and token sales. The team must continually try to keep up with and surpass the competition, and give more value to the investors. A basic way to add value is to increase the exchange rate or price of the token. Investors and team members earn greater returns, and the project always stays above breakeven. For a project token to increase in value, there has to be more demand for it in a free market, relative to a given supply. It is important to have a clear understanding of how your token will likely be received, traded and supported throughout each stage of the ICO process.
In the Post-ICO stage, the financers and founders of the company will usually begin to manage and assess how best to support the token price. Here are some common strategies and ideas: Token Cap: The easiest way to support the token price is to reduce the number of tokens in circulation. Putting a cap on a token means placing a limit on the number of tokens that are available. As the supply of tokens is reduced, the demand for the token increases and the value of the token goes up. Token Buy Back: just as the name signifies, the team members can unanimously agree to buy up all or most of the company tokens that are still in circulation. When they have done that, they can either burn or destroy the tokens. The of course reduces the number of tokens in circulation and subsequently increases the value of the floating tokens. This kind of buy back can be taken as a continuous course of action, or be used as a one-time way to boost the token value.
Token creation by Third Parties: Team members can also brainstorm for other ways to increase or restrict the supply of more tokens to the market. One way tokens are created is via mining. When a project makes mining the main way to increase the supply of tokens for their project, that is perceived as more difficult and restrictive, limiting the rate of increase in supply on the open market, therefore increasing the demand for that token. Token creation by the Project: A project can simply choose to create more tokens when necessary. For example, when the token value has become so high that the users do not use it anymore for the services offered. This action is not generally recommended. It not only burns earlier investors by diluting the value of their current holdings, but also bodes poorly for the future (you might just keep minting new coins). Generally, to increase the demand for a token, the services offered by the project can be made more valuable to the users. That will generate higher demand. The more investors make use of the services and pay with the project tokens, the higher the token value will be.
Involvement in the Blockchain Industry
After you have some ideas which role or position might be best for you, you can start to network and search for opportunities in the crypto ecosystem. It is not enough to be an accountant, an economist or a business development professional in the traditional world. You need to know about the Blockchain industry as well. Remember, in the Blockchain industry, your reputation is everything. You want a strong social media presence. A professional profile on LinkedIn. Published articles if you have them. When you start talking to projects, you want to have a solid understanding of who you are and what you can do in crypto and Blockchain. The best way to get experience and become a part of your first ICO project is either: Volunteering: gets you into the industry. At first, you might want to care less about what is in it for you, and just get your foot in the door. If possible, you can volunteer for a role in an ICO project you really want to work at. Direct Networking: is a loose term that simply means you contact projects and ask about what is going on. Many projects are run by very digitally savvy individuals. Just asking for a job opportunity is likely to leave you disappointed (unless they happen to actually be in need of your exact talents at that time! In which case asking for work is the smarted thing you could ever do). Try to be useful, become friends, or associates. Help a team member anyway you can and see if an opportunity arises from that.
That’s not all! You can get better understanding of major roles in the blockchain Industry from ICO teams through to solidity developers. Follow the link to read our lesson on the topic:
UBAI.co
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Cosmos — an early in-depth analysis at the ecosystem of connected blockchains — Part One

Cosmos — an early in-depth analysis at the ecosystem of connected blockchains — Part One
This is part one of three articles where i will discuss what i have learnt whilst looking into Cosmos. I will provide links throughout the article to provide reference to sections as well as a list of sources at the bottom of the article for you to look into specific areas in more detail if required. Hopefully it will be useful for those interested in learning more about the project.
Cosmos is still very early in development process with components such as IBC which connects two blockchains together currently in research / specification stage, as a result can change by the time its released.

What is Cosmos?

Cosmos is a network and a framework for interoperability between blockchains. The zones are powered by Tendermint Core, which provides a high-performance, consistent, secure PBFT-like consensus engine, where strict fork-accountabilityguarantees hold over the behaviour of malicious actors. Cosmos is not a product but an ecosystem built on a set of modular, adaptable and interchangeable tools.
In Tendermint, consensus nodes go through a multi-round voting proposal process first before coming to consensus on the contents of a block. When 2/3 of those nodes decide on a block, then they run it through the state transition logic providing instant finality. In current proof of work consensus for Ethereum, the consensus process is inverted, where miners pick the transactions to include in a block, run state updates, then do “work” to try and mine the block.
Tendermint BFT can handle up to thousands of transactions per second (depending on the number of validators). However, this only takes into account the consensus part, the application layer is the limiting factor though. Ethermint (described below) has achieved up to 200 tps to give you an idea of the speed available per blockchain which is significantly more than current versions of Ethereum and Bitcoin etc.
The Tendermint consensus is used in a wide variety of projects, some of the most notable include Binance Chain, Hyperledger Burrow. It’s important to note though that just using Tendermint consensus doesn’t mean they can connect to other chains with the cosmos ecosystem, they would need to fork their code to implement IBC as a native protocol to allow interoperability through IBC.

see https://raw.githubusercontent.com/devcorn/hackatom/mastetminfo.pdf for high res

The Tendermint consensus algorithm follows a traditional approach which relies on all validators to communicate with one another to reach consensus. Because of the communication overhead, it does not scale to 1000s of validators like Bitcoin or Ethereum, which can have an unlimited number of validators. Tendermint works when there are 100s of validators. (Cosmos Hub currently has a maximum of 100 validators and the maximum tested so far with Tendermint is 180 validators)
Therefore, one of the downsides of a blockchain built using Tendermint is that, unlike Bitcoin or Ethereum, it requires the validators to be known ahead of time and doesn’t allow for miners to come and go as they please.Besides this, it also requires the system to maintain some notion of time, which is known to be a complex problem in theory. Although in practice, Tendermint has proven this can be done reasonably well if you use the timestamp aggregates of each node.
In this regard, one could argue that Tendermint consensus protocol is “less decentralized” than Bitcoin because there are fewer validators, and they must be known ahead of time.
Tendermint’s protocol guarantees safety and liveness, assuming more than 2/3 of the validators’ voting power is not Byzantine (i.e., malicious). In other words, if less than 1/3 of the network voting power is Byzantine, the protocol can guarantee safety and liveness (i.e., validators will never commit conflicting blocks at the same height and the blockchain continues to make progress).https://www.preethikasireddy.com/posts/how-does-cosmos-work-part1
To see the process of how Tendermint works please see this diagram as well as more info here

Sovereignty

Cosmos goal is to provide sovereignty through governance to developers by making it easy to build blockchains via the Cosmos SDK and provide interoperability between them, using Tendermint consensus. This is their main differentiator compared to competition like Polkadot and Ethereum 2.0. Ethereum 2.0 and Polkadot are taking a different approach by only using shared security, where there is a root chain which controls the security / prevents double spending for all connected blockchains.
Governance is where all stakers vote on proposals to determine what changes are implemented in the future for their own blockchain, stakers can either choose to delegate their vote to the validator or they can instead vote directly. Without sovereignty all DAPPs share the same underlying environment. If an application requires a new feature in the EVM it has to rely entirely on the governance of the Ethereum Platform to accept it for example. However, there are also tradeoffs to having sovereignty as each zone is going to need a way to incentivise others to validate / create blocks on the Zone by running Full Nodes. Whilst it may be easy to create a blockchain using the cosmos SDK and to mint a token, there are the legal costs / regulation associated with creating your own token. How are you going to distribute the tokens? How are you going to list them on exchanges? How are you going to incentivise others to use the token without being classed as a security? All of which have led to a significant reduction in the number of ICOs being done. With every zone needing their own validator set, there’s going to be a huge number of validators required each trying to persuade them to validate their zone with only a finite number of validators available.
Each Zone / App is essentially a mini DAO and not all are going to be comfortable about having their project progress been taken out of their hands and instead relying on the community to best decide on the future (unless they control 2/3 of the tokens). The Cosmos Hub has proved this can be successful, but others may be risk averse to having their application be a mini DAO. Should someone / competitor acquire 1/3 of the tokens of a zone then they could potentially prevent any further progress being made by rejecting all governance votes (this would be very costly to do on the Cosmos Hub due to its high amount staked, but for all the other less secure zones this potentially may be an issue).
Security for some zones will likely be a lot lower with every developer needing to validate their own blockchain and tokenise them with POS with no easy way to validate the setup of a validator to ensure its secure. Whilst the Cosmos hub is very secure with its current value staked, how secure zone’s will be with significantly less staked remains to be seen. Whilst providing soverignty was Cosmos’s main goal from the start, they are also looking at being able to provide shared security by having validators of a connected Hub also validate /create new blocks on the connected zone’s blockchain for them as well. They are still going to need some way to incentivise the validators to this. Another option is if the developers didn’t want to create a token, nor want sovereignty etc, then they could just build a DAPP on the EVM on a zone such as Ethermint.
As can be seen their are potential advantages and disadvantages to each method, but rather than forcing shared security like Ethereum and Polkadot, Cosmos is giving the developer the choice so will be interesting to see which they prefer to go for.

Layers of a blockchain

From an architecture standpoint, each blockchain can be divided into three conceptual layers:
  • Application: Responsible for updating the state given a set of transactions, i.e. processing transactions.
  • Networking: Responsible for the propagation of transactions and consensus-related messages.
  • Consensus: Enables nodes to agree on the current state of the system.
The state machine is the same as the application layer. It defines the state of the application and the state-transition functions. The other layers are responsible for replicating the state machine on all the nodes that connect to the network.
The Cosmos SDK is a generalized framework that simplifies the process of building secure blockchain applications on top of Tendermint BFT. The goal of the Cosmos SDK is to create an ecosystem of modules that allows developers to easily spin up application-specific blockchains without having to code each bit of functionality of their application from scratch. Anyone can create a module for the Cosmos SDK and using ready built modules in your blockchain is as simple as importing them into your application.
The Tendermint BFT engine is connected to the application by a socket protocol called the Application Blockchain Interface (ABCI). This protocol can be wrapped in any programming language, making it possible for developers to choose a language that fits their needs.

https://preview.redd.it/go1bgareiba31.png?width=770&format=png&auto=webp&s=c9a2c9faa9c99dd8c7a7b6925c7ea281e203eb47

Hub and Spoke Topology

Cosmos follows a hub and spoke topology as its not feasible to connect every zone together. If you were to connect every blockchain together the number of connections in the network would grow quadratically with the number of zones. So, if there are 100 zones in the network then that would equal 4950 connections.
Zones are regular heterogenous blockchains and Hubs are blockchains specifically designed to connect Zones together. When a Zone creates an IBC connection with a Hub, it can automatically access (i.e. send to and receive from) every other Zone that is connected to it. As a result, each Zone only needs to establish a limited number of connections with a restricted set of Hubs. Hubs also prevent double spending among Zones. This means that when a Zone receives a token from a Hub, it only needs to trust the origin Zone of this token and each of the Hubs in its path. Hubs do not verify or execute transactions committed on other zones, so it is the responsibility of users to send tokens to zones that they trust.
There will be many Hubs within Cosmos network the first Hub to launch was the Cosmos Hub whose native staking token is called ATOM. ATOM tokens are specific to just the Cosmos Hub which is one hub of many, each with their own token. Transaction fees for the Cosmos Hub will be payable in multiple tokens so not just ATOMs whereas other Hubs such as IRIS has made it so that all transaction fees are paid in IRIS for transactions on its hub.
As mentioned, the Cosmos Hub is one of many hubs in the network and currently has a staking ratio of around 70% with its token ATOM having a market cap of just over $800 million. IRISnet was the second Hub to launch which currently has around 28% bonded with its token IRIS which has a market cap of just under $17 million. The Third Hub about to be launched later this month has its token SENT which has a market cap of around $3.4 million. As you can see the security of these 3 hubs differ wildly and as more and more hubs and then zones are brought online there is going to need to be a lot of tokens / incentivisation for validators.

Ethermint

Standard Cosmos zones / hubs don’t have smart contract functionality and so to enable this, as the Application layer is abstracted from the consensus layer via ABCI API described earlier, it allows Cosmos to port the code over from other blockchains such as Ethereum and use it with the Tendermint Consensus to provide access to the Ethereum Virtual Machine. This is what is called Ethermint.
This allows developers to connect their zones to specialised zones such as Ethermint to build and run smart contracts based on Solidity, whilst benefiting from the faster performance of the tendermint Conensus over the existing POW implementation currently. Whereas a normal Go Ethereum process runs at ~12.5 transactions per second (TPS), Ethermint caps out at 200 TPS. This is a comparison against existing Ethereum speeds, whilst obviously Ethereum are working on their own scaling solutions with Ethereum 2.0 which will likely be ready around the same time. Existing tools / dapps used on ethereum should easily be able to be ported over to Ethermint by the developer if required.
In addition to vertical scaling (with the increase in tps by using Tendermint consensus), it can also have multiple parallel chains running the same application and operated by a common validator set. So if 1 Ethermint zone caps out at 200 TPS then 4 Ethermint zones running in parallel would theoretically cap out at 800 TPS for example.

https://preview.redd.it/oboyonufiba31.png?width=554&format=png&auto=webp&s=18560aa44596fc2357590b54ddb39fd8ee1c8783
There is a huge number of developers / apps currently built on Ethereum, should a developer choose to migrate their DAPP over to Ethermint they would lose native compatibility with those on Ethereum (except through Peg Zone), but would gain compatibility with those running on Ethermint and others in the cosmos ecosystem.
You can find out more about Ethermint here and here
IBC
IBC stands for inter-blockchain communication protocol and is an end-to-end, connection-oriented, stateful protocol for reliable, ordered, authenticated communication between modules on separate distributed ledgers. Ledgers hosting IBC must provide a certain set of functions for consensus transcript verification and cryptographic commitment proof generation, and IBC packet relayers (off-chain processes) are expected to have access to network protocols and physical datalinks as required to read the state of one ledger and submit data to another.
In the IBC architecture, modules are not directly sending messages to each other over networking infrastructure, but rather creating messages to be sent which are then physically relayed via “Relayers”. “Relayers” run off-chain and continuously scan the state of each ledger via a light client connected to each of the 2 chains and can also execute transactions on another ledger when outgoing datagrams have been committed. For correct operation and progress in a connection between two ledgers, IBC requires only that at least one correct and live relayer process exists which can relay between the ledgers. Relays will need to be incentivised to perform this task (the method to which hasn’t been established as of this writing)
The relay process must have access to accounts on both chains with sufficient balance to pay for transaction fees. Relayers may employ application-level methods to recoup these fees, such by including a small payment to themselves in the packet data. More information on Relayers can be found here

https://preview.redd.it/twjzlc8hiba31.png?width=1100&format=png&auto=webp&s=2e546142573b61af031e27dac83ddca675a4b693
A high-level overview of the process is that Zone 1 commits an outbound message on its blockchan about sending say 1 x Token A to Hub1 and puts 1 x Token A in escrow. Consensus is reached in Zone 1, and then it’s passed to the IBC module to create a packet which contains the reference to the committed block, source and destination channel/ connection and timeout details and is added to Zone 1’s outbound queue as proof.
All relayers (who run off-chain) are continuously monitoring the state of Zone 1 via the Zone 1 light client. A Relayer such as Relayer 1 is chosen and submits a proof to Hub1 that Zone 1.
Hub 1 then sends a receipt as proof that it has received the message from Zone 1, relayer1 sends it to Zone 1. Zone 1 then removes it from its outbound queue and sends proof via another receipt to Hub1. Hub1 verifies the proof and mints the token.

https://preview.redd.it/d4dclm3iiba31.png?width=770&format=png&auto=webp&s=9ca521efc8580800067e1c4e3f74c0ab8df30555
This video below explains the process in more detail as well as covers some of the other points i raise later in this article so worth a watch (time stamped from 22:24 to 32:25) and also here from 38:53 to 42:50
https://youtu.be/5h8DXul4lH0?t=1344

Whilst there is an option for UDP style transfer where a zone will send a message to a Hub and it doesn’t care whether it gets there or in any order etc, Token transfers are going to require the TCP style connections in IBC where there is a send, receipt and then another receipt as explained above. Each Send, receipt followed by another receipt is going to take at least 2 blocks and so using Cosmos Hub block times as an example with 6.88 second block times a transfer between one zone and hub could take a minimum of 41.28 seconds. You also then have to factor in the amount of other transactions going through those at that time and relevant gas price to see whether it is able to use 2 consecutive blocks or whether it may take more. This is also explained in this video “ILP Summit 2019 | Cosmos and Interledger | Sunny Aggarwal” (time stamped) from to 12:50 to 15:45

In Part Two we will look at potential issues with multi hop routing, token transfers across multiple routes and Peg Zones, whilst also looking at other interoperability solutions that would resolve some of these issues and compliment the cosmos ecosystem. Part Two can be found here
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Network Security & Whether to ProgPow

While listening to the Core Devs Meeting #54 this morning, I realized that the factual trade-offs around ProgPow need to be better defined so that we can truly hear the community's take on this issue. It is a lot to put on the core team, and everyone seems to want more participation in this debate. An audit of ProgPow is necessary, but it will not lead to a decision on whether to implement it or not. In talking about the trade-offs of ProgPow until the end of such audit, let's just assume it works as expected.
I'll start by saying that it has been extremely difficult and frustrating for me to understand the tradeoffs of ProgPow, despite being actively involved in the community. I can only imagine how difficult it might be for the average ETH stakeholder to have an opinion on whether ProgPow is a good idea or not.
The conspiracy theories that have surfaced around ProgPow have certainly not contributed to the debate, and I'd like to take this opportunity to focus on facts, not speculation.
If you just tuned in, a good place to start is the question what is ProgPow?
ELI15: ProgPow is a module based on CUDA to better parallelize specific functions of Ethash on Nvidia architectures and increase computational efficiency. My back-of-the-envelope math shows that, under ProgPow, GPUs mining ProgPow-Ethash would be 1.5x more efficient than Plain-Ethash. Also, ProgPow allows the algorithm's parameters to be programmatically changed to prevent an integrated circuit (in an ASIC) to have an edge on efficiency over commodity GPUs in the long-run.
ELI5: ProgPow makes GPUs more efficient and allows Ethash to change in a way that curbs the advantage ASICs have over GPUs in the long-run.
The issue(?) of decreased hashing power
EF Security Lead Martin Swende said in the call today that he expects ProgPow to cut difficulty in half, which would in turn lead to lower hashing power being allocated to the network. Since Plain-Ethash would have different parameters than ProgPow-Ethash, their hashrates are not comparable in terms of security. Think of Plain-Ethash and ProgPow-Ethash as different algorithms. Still, all else equal, a 50% decrease in difficulty "doesn't sound too good" as u/Souptacular put it in the call today. That is because, even though hashrates are not comparable, the aggregate amount of electricity required to potentially attack the network is decreased, meaning, the cost of an attack might be lower post-ProgPow. However, I also recognize that there are social factors that also need to be considered in the decision of implementing ProgPow.
Based on my conversations, hobbyist miners have a love/hate relationship with Ethereum.
Ethash's hardness to ASIC has brought to Ethereum a lot of individual miners and small operations who, through mining pools, contribute to a large amount of the current hashrate. Competition with larger operations is lower on Ethereum than say, Zcash, given the much decreased efficiency gains when using ASICs on Ethash. This is the "love" in the sentence above. The "hate" is the realization that the network will eventually adopt PoS and that, until then, block rewards will continue to decrease. This is painful, especially at current price levels. This coalition of smaller operations believes that the adoption of ProgPow would level the playing field even further and make mining Ethash more fair. Not adopting ProgPow may lead this coalition of retail miners to leave Ethereum. This is may be the main reason why large mining pools like Ethermine are pro-ProgPow. The worst-outcome-possible would be for these miners to fork their coalition out of the protocol.
The issue of ASIC centralization
Another argument pro-ProgPow that keeps popping up is that ASICs contribute to centralization, which has been an ongoing problem for Bitcoin and many other protocols that employ algorithms that are not as hard as Ethash. u/vbuterin has said in the past that he does not believe mining centralization concerns are as relevant to Ethash as other algos. And after surveying the Ethash ASIC market, I tend agree with him. It all seems to comes down to efficiency and the degree of centralization in the ASIC manufacturing industry. Ethash ASICs are only 2x more efficient than state-of-the-art GPUs; a much lower efficiency coefficient than SHA-256 ASICs, which are 1000x more efficient. There are now eleven different models of Ethash ASICs in the market, and three fiercely competitive manufacturers producing them (BITMAIN, Innosillicon and PandaMiner). Had BITMAIN been the only entity in the Ethash ASIC market, I would be more concerned about centralization, but that does not seem to be the case. Ultimately, we should remember that ProgPow does not eliminate existing ASICs from the market - it only makes existing GPUs more efficient on a relative basis. Also, the activation of ProgPow would not prevent these manufacturers from developing a ProgPow-compatible ASIC.
The most important factor to consider right now is network security.
Even more so because the PoW chain will be an integral component of the first stages of the new Serenity roadmap. PoS validators stake their funds on the PoW chain and, as such, the entire system relies on a sufficiently large number of miners to not abandon Ethereum. From my understanding, due to the use of Nvidia's CUDA, GPU miners running RX580s and RX Vegas (which are based on AMD) would not be able to mine ProgPow (please fact-check if I'm wrong). We don't know the proportion of miners running AMD versus Nvidia versus ASICs.
Core developers are focusing on whether ProgPow does what it is supposed to do, hence the focus on an audit, but that might not be the right question. The way I see it, the right question should be (assuming ProgPow works): in what scenario will network security be optimized in terms of cumulative electricity expenditure allocated to Ethash?
u/5chdn
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Bumo: facilitates the incorporation of any person or thing into the world of the blockchain.

Introduction
When we realized that the Internet was occupying more spaces in all the affairs of the world, we had to take a term to define it, and it was called "the internet of things" (IoT). We just had to assimilate that to evolve in technology everything should be connected, everything should be in the cloud.
Then in 2009 appears Bitcoin and its famous blockchain, to accelerate things further. And new projects and cryptocurrencies arise, and now it is not enough to be connected, but everything must be able to be related, exchanged, but in a quick way and without intermediaries.
That's where the blockchain and its decentralized feature appear, and now it begins to gain ground. And it is not enough that things have internet, that they are only connected. Now the call is for things to be "Tokenized". That any asset has its digital value in the world of cryptocurrencies.

The Problem

However, there are many aspects that have stopped or delayed the evolution or massification of the blockchain.
For example, the two largest known blockchain platform known Bitcoin and Ethereum its performance is very low, since it has remained small processing capacity of all transactions that are made, to that we must add that they are based on mining under the Work Test, whose equipment has a very large energy consumption. Another of the major faults that these two networks currently have is the little transfer of knowledge that is handled, there are very few people who have professional technical experience and an expert in the field..

What is Bumo?

Bumo is a platform that seeks to no longer be the Internet of things, but to talk about "The Blockchain of things". Bumo seeks to "Tokenize" all things, to be able to give value to any asset of value of the people.
For this, Bumo encourages the participation of each person, allowing their smart devices to be part of the blockchain network of Bumo. This solves the problems of scalability and physical centralization that sometimes arise with blockchain networks based on mining. By doing this a true decentralization is established in the network.
In addition Bumo makes available to users tools and development templates to facilitate the incorporation of people and their assets in the network.
BUMO is a project with the objective of creating a trust network where value can flow as freely as information, utilizing existing smart devices that are already present everywhere in the world! BUMO is focused on enhancing ease of transfer over various networks within the Internet of Things, fintech, and the social network industry. By connecting digital assets, smart devices and user data, BUMO will enable the true benefits of the digital economy to enhance people’s lives. Ready-to-use enterprise-grade infrastructure that can support up to 10,000 transactions per second Developer friendly design tools and templates for easy dApp deployment Smart devices act as network nodes! Source

Bumo is structured in a very simple way, with an optimal functioning. Its modules, BU Firework, BU Orbits, BU Canal and BU CodeMach, are merged for harmonious and efficient work.
Technical characteristics:
The technical capabilities of Bumo, allows you to adapt to varied application scenarios, allowing a multiple asset account structure, which can be controlled by multiple users if they wish.
The data is stored in a segregated manner, differentiating between the data inside and outside the processing chain. This data is available to the user in easy-to-use interfaces.

Conclusion
It can be said that Bumo is an efficient and optimal solution for the current problems of scalability, speed and security that the blockchain has.
Bumo encourages the incorporation of users into their network, in such a way as to make it stronger and more compact. With a security with the highest standards of the decentralized world.
Bumo facilitates the incorporation of any person or thing into the world of blockchain.

More Information and Resources

BUMO Website BUMO WhitePaper BUMO TechnicalPaper BUMO Telegram BUMO Weibo BUMO Reddit BUMO Facebook BUMO Twitter BUMO Github BUMO Wallet
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What is Bitcoin? Bitcoin Explained Simply for Dummies ... What is Bitcoin for dummies - A simple explanation for ... What is Bitcoin Mining? (In Plain English) - YouTube What is Bitcoin Mining? - YouTube Bitcoin Mining 2019 - Should We Mine Bitcoin? - YouTube

However, the standard mining operation of popular cryptocurrency networks like bitcoin and ethereum needs high end hardware. The limited resources available in white goods are no match for those ... In a bitcoin forum, he writes, ''A lot of people automatically dismiss e-currency as a lost cause because of all the companies that failed since the 1990s. I hope it's obvious it was essentially controlled nature of those systems that doomed them.'' So what's interesting here, as we had a problem for which there had been multiple attempts to solve it and they'd all failed. That was probably ... Introduction. Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions (and a "mining rig" is a colloquial metaphor for a single computer system that performs the necessary computations for "mining".This ledger of past transactions is called the block chain as it is a chain of blocks.The blockchain serves to confirm transactions to the rest of the ... A Bitcoin mining module is usually a worker as assigned in the Bitcoin mining software. For example, four GPUs are plugged into the motherboard constituting the Bitcoin mining hardware. Then the Bitcoin mining software identifies each GPU as a unique worker. So, this small Bitcoin mining rig would be composed for four Bitcoin mining modules. Hashing Functions and Mining. All Bitcoin transactions are grouped in files called blocks. Bitcoin adds a new block of transactions every 10 minutes. Once a new block is added to the blockchain, it becomes immutable and can't be deleted or modified. A special group of participants in the network called miners (computers connected to the blockchain) are responsible for creating new blocks of ...

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What is Bitcoin? Bitcoin Explained Simply for Dummies ...

What is Bitcoin - A simple non technical explanation about the concept of Bitcoin for beginners. For the complete text guide visit: http://bit.ly/2DvHagt Joi... బిట్ కాయిన్ గురించి పూర్తివివరాలు ఈ వీడియో చూసి తెలుసుకోండి ... Start trading Bitcoin and cryptocurrency here: http://bit.ly/2Vptr2X Bitcoin is the first decentralized digital currency. All Bitcoin transactions are docume... What is A Bitcoin Node. Step by Step Explanation https://blockgeeks.com/ The bitcoin network consists of a network of nodes, which are just computers or serv... For more information: https://www.bitcoinmining.com and https://www.weusecoins.com What is Bitcoin Mining? Have you ever wondered how Bitcoin is generated? T...

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