Saturday, November 14, 2015

A Watershed Moment For Bitcoin - Singapore Leads The Way



Transcript : "... there are other technologies like Blockchains which is used for bitcoins, but can also be use for many other applications like, Real Gross Time Settlement and Trade Finance Verification. So our banks and our regulators MAS must keep up to date and up to scratch with these developments..."

Real Time Gross Settlement : "Gross settlement" means the transaction is settled on one to one basis without bundling or netting with any other transaction. RTGS systems are typically used for high-value transactions that require immediate clearing, usually by a country's central bank.

and

Trade Finance Verification : Same-day affirmation (SDA) also known as T0 refers to completing the entire trade verification process on the same day that the actual trade took place.

He refers to Blockchains (plural), He points out that there are many type of blockchains and only one of which is bitcoin. This actually sidesteps the previously negative image attributed to bitcoin.

It shows a clear understanding of what blockchain technology is all about. Furthermore he directs that their banks and regulators keep up to date with developments. Singapore have always maintained a level headed approach towards bitcoin. It was the first country to clearly define the legal position of bitcoin. Here regulators treat bitcoin for tax purposes it the way it is used, either as a commodity or currency. This has allowed many innovative bitcoin companies to setup and thrive in Singapore.

In his speech he praised the banking industry for it's success but also points out that there are other banks that are better in other areas of the finance and banking, such as mobile payments. This is reinforcing Singapore's model of always wanting to be the best in areas of industry that they target. Being a financial hub have been part of the plan since the founding of Singapore as an independent state.

I would argue that this is a watershed moment for bitcoin and blockchain technologies in general. The community have always hoped for a country to "adopt" bitcoin. This endorsement from the leader of a major developed nation and a global financial hub comes close.  It is a good bet that a good many leaders have been taken by surprise and are "scrambling for the exits" so to speak.

Update 24/11/2015 : Banks Urged To Take Digital Currencies Seriously



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Thursday, November 12, 2015

People In Bitcoin - Movers and Shakers of the Bitcoin World

IN THE BEGINNING...... Satoshi Nakamoto

Image result for satoshi nakamoto

Everyone who has ever indulge in bitcoin have wondered who this mysterious person is. On 31 August 2008 the bitcoin white paper was published followed by code in January 2009. Satoshi used the internet and an email address to publish, maintain and communicate with the early core developers until his exit in May 2011 when he passed on the mantle of core maintainer to Gavin Andresen. If we step back alittle, it is obvious that this process of introducing and exiting without a trace was planned right from the begining. Otherwise there would have been a slip over the 2 years and there would be a trail to follow towards his discovery.

Can this man be the real Satoshi Nakamoto, Report Wired and Gizmodo

Image result for hal finney
Hal Finney  (Bitcoin & Me)
Image result for nick szabo
Nick Szabo
More likely it is more than 1 person and they would have had previous encounters with digital cash. Previous iteration of digital cash such as Digi Cash, Egold and Liberty dollars have all been shut down by the government. Likely candidates are Nick Szabo and Hal Finney, though Adam Back's hashcash algo was used in the bitcoin code. 


EARLY CORE CONTRIBUTORS

Gavin Andresen

Martti Malmi

Amir Taaki

The Bitcoin Foundation's original members included Gavin AndresenCharlie ShremMark Karpeles, Peter Vessenes, Roger Ver, and Patrick Murck. 

Smart Contracts - It Executes Itself

As a society we have developed laws and legal systems to govern ourselves. In the area of contract laws we have notaries, courts and judges to try and adjudicate contracts in disputes.

Then we have bitcoin and the blockchain and a whole new area of smart contracts is upon us. A smart contract is one that executes itself if all the conditions are met. Bitcoin is smart money. Within it's code Alice can send Bob a bitcoin if date is after XXYYZZ, and when that date arrives the bitcoin will appear in Bob's wallet. This is the simplest example of a smart contract. Contract law has been embedded into code and there is no ambiguity.

Bitcoin code can only handle very simple scripts and so Ethereum was invented to include turing complete languge.


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Wednesday, November 11, 2015

The Bitcoin Blockchain - Real Life Applications

Information stored on the blockchain is immutable and unchangeable.

1) Everledger. Recording information of valuable diamonds on the blockchain.
Every diamond has a unique ‘fingerprint’, consisting of 40 different parameters. Problems of conflict diamonds and authenticity of the diamonds are addressed by recording this information about each diamond on the blockchain. There are currently more than 300,000 diamonds already registered with Everledger. 

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Getting Your First Bitcoin - First Step Down The Rabbit Hole

OK you are finally convinced that bitcoin is here to stay and you are ready to make your first bitcoin investment. Now how do you get your first bitcoin?

It is actually not so easy. Banks are not too happy integrating with bitcoin businesses making it difficult to exchange between currency and bitcoin.

1) Bitcoin ATM
Image result for bitcoin atm

Bitcoin ATM's Worldwide

At first glance it seems easy but quite often these machines are not working or are in low traffic areas. Good if you can get someone to show you how to use the machine.

2) Local Bitcoin

Local Bitcoins Website

Next to exchanges local bitcoins are the best way to purchase some bitcoins. Find a dealer close to you and make your purchase in person with cash. Rates will be higher than those charged at the exhcanges. Once you have struck up a relationship future purchases would be easier.

3) Bitcoin Exchange

List Of Bitcoin Exchanges Worldwide

It is easy to open up an account with the exchange but difficult to connect your bank account with the exchange. However registering your credit card will be easier. You will often be ask for idenfication and details of residence.

4) Mycelium Wallet

You can download a Mycelium wallet for your phone and use it as your bitcoin wallet. Mycelium wallet has a feature showing you the nearest contacts for people wanting to sell and buy bitcoins.

5) Bitcoin Mining

Bitcoin mining is not for the non technically minded and quite often it is difficult to purchase. Currently only 2 companies are selling direct to the public. Bitmain and Spoondoolies.

Image result for s7 bitcoin miner

At a price of $1585 USD it will take quite some time to get a positive return on capital. However some people look at bitcoin as a long term investment and it's future value being greater than it's current value. Bitcoin mining produces diminishing returns but if the price of bitcoin keep increasing as expected then this may turn out to be a good investment.

6) Cloud Mining.

Surprisingly this may be the easiest way to get a stream of bitcoins. Genesis Mining is the best cloud mining operation. They are very professional and have been around for quite sometime. It is easy to make a purchase a mining contract with your credit card. They offer lifetime contract though how long this will last is unclear.

7) Offer products and services for bitcoin

Open Bazaar will soon launch and they have ambitions of becoming as big as Ebay.


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