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Problems Solved By Blockchain

What Problems Can Blockchain Generalizably Solve?

What Problems Can Blockchain Generalizably Solve?

Public blockchains (e.g., those used by bitcoin or ethereum) enable two people or organizations to confidently and securely transfer value (e.g., money or a digital asset) electronically from one person or organization to another without an intermediary (e.g., a bank or PayPal). Most people use a third-party ledger on a daily basis even if they dont realize it. It could be your credit card company recording your purchase of a cup of coffee, StubHub recording your purchase of a concert ticket or Apple iTunes recording your purchase of a movie. Buyers and sellers use intermediaries because they may not trust the other party, but they trust that the intermediary will assure the transaction is completed faithfully. However, this trust comes at a cost as each of these intermediaries charge the buyer or seller a fee to maintain a ledger of who owns what. Additionally, an intermediary may prevent certain people or organizations possibly competitors, for example from using its platform. In addition to payments, a small selection of other problems the blockchain can address is maintaining open and transparent government ledgers (e.g., property title), restoring your ownership of digital media (e.g., songs, books and movies), enabling you to listen, watch or read that content on any platform, maintaining an accurate ledger of shares (e.g a private cap table), and verifying the ownership of valuables (e.g., diamonds or art). As a side note, technically, the blockchain solved the Byzantine Generals Problem , but since the question asked for problems it generalizably solves, this is very simple, non-technical answer. 27.3k Views View Upvoters Answer requested by Sebastian Stormbo , Quora User, and 90 more Answered Apr 13, 2017 Author has 272 answers and 289.6k answer views Blockcha Continue reading >>

The 5 Big Problems With Blockchain Everyone Should Be Aware Of

The 5 Big Problems With Blockchain Everyone Should Be Aware Of

The 5 Big Problems With Blockchain Everyone Should Be Aware Of {{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. The author is a Forbes contributor. The opinions expressed are those of the writer. This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. {{article.article.magazine.subscription_text}} Blockchain is often touted as a world-changing technology and in many ways, it is. However, it isnt necessarily the cure-all panacea for the worlds problems that many evangelists would have you believe. Heres a breakdown of some of the issues with blockchain that anyone thinking of using it should understand. Starting with perhaps the biggest At least, the way it is being used today, it does. Blockchain relies on encryption to provide its security as well as establish consensus over a distributed network. This essentially means that, in order to prove that a user has permission to write to the chain, complex algorithms must be run, which in turn require large amounts of computing power. Of course, this comes at a cost. Taking the most widely known and used blockchain as an example Bitcoin last year it was claimed that the computing power required to keep the network running consumes as much energy as was used by 159 of the worlds nations . Yes, Bitcoins blockchain is a hugely valuable network with a current market capacity at the time of writing of over $170 billion so sophisticated and computationally intense security is essential. Smaller scale blockchains such as those that an organization may deploy internally to securely monitor and record business activity would consume a fraction of that. Nevertheless, its an important consideration and the environmental implic Continue reading >>

The Biggest Problem With Blockchain And How To Solve It, Illustrated

The Biggest Problem With Blockchain And How To Solve It, Illustrated

The biggest problem with blockchain and how to solve it, illustrated The biggest problem with blockchain and how to solve it, illustrated The biggest problem with blockchain platforms right now can be illustrated by a simple analogy. At the beginning of the 21st century, the internet was incredibly slow. If you had a blog back then, it would have been both time-consuming and expensive for users to access it. People noticed the problem, but they also recognized the usefulness of the internet. To resolve this, they worked on improving the internets infrastructure and design.At the same time, they built better hardware to run important elements of the internet as we know it today. Because of these changes, the internet became faster, and the costs of accessing websites became much lower. Before, developers were only able to create a single web page. But after the changes, developers could now build sites like Facebook, Google, and Twitter on the improved infrastructure. All this is possible because the internet is now very fast and scalable. At present, blockchain transactions face a similar hurdle: theyre slow and expensive. Blockchain companies are working to provide scalable infrastructure so that blockchain platforms can become mainstream in future. Once this happens, not only can people use blockchain for payment purposes, but they can also build applicationssimilar to Google and Facebook on top of them. Zilliqa is one of the companies seeking a solution to this problem. Tech in Asia sat down with Yaoqi Jia, head of technology at Zilliqa , to find out more. Blockchain and the problem of scalability The problem of scalability cannot be explained without first explaining the idea of throughput. Imagine you are at a train station. Trains here come in one-hour intervals, Continue reading >>

Blockchain Was Made To Solve 1 Problem. Heres What That Is. - Aicpa Insights

Blockchain Was Made To Solve 1 Problem. Heres What That Is. - Aicpa Insights

Blockchain was made to solve 1 problem. Heres what that is. Blockchain is a solution looking for a problem. Unless you want to buy drugs on the internet, said the instructor in a technology training I recently attended. While not the first time I had heard such a comment, it was disturbing that a hundred of my fellow practitioners were being misled. Ignoring or dismissing blockchain does the accounting profession no favors. Instead, lets consider the problem that the technology solves. This will provide a basis for later understanding possible applications to our work. What is the problem blockchain is trying to solve? Blockchain, or distributed ledger technology, set out to solve how we transfer a digital asset between two peers without an intermediary. While there are many applications of this transfer, lets look at it in the context of money. Imagine you are selling a bike online. You dont actually know the person who is buying your bike, so you have no way of knowing if the buyer actually has the money to pay for it. You have to trust an intermediary like PayPal for this information. PayPal is crucial to the transaction because it verifies what you cannot whether the buyer has enough money in their bank account to make the purchase. The asymmetry of trust in this transaction is known as the Byzantine Generals Problem. Imagine we have four generals planning to attack a city. At least three of the generals must attack at the same time to overpower the army holding the city. However, the only way they can communicate with each other is via messenger, and they do not know if one of the generals is a traitor. If a general were traitorous, he could modify the attack message and cause the other generals to fail. The only way to overcome a traitorous general is to provide Continue reading >>

The Problems With Blockchain

The Problems With Blockchain

We would like to take a moment to discuss the problems with blockchain, which might seem odd as we are a blockchain company. In truth, it was the problems we saw in the early stages of blockchain technology that led us to create the Factom Network. As the years progress and Factom matures, we like to make sure these core reasons for the Factom Networks creation stay at the forefront of Factoms story. As with most things, the problems with blockchain are only problems in context. The original blockchain implementation, Bitcoin, was designed to track a token (the Bitcoin), and it does this task well. Or at least it did in the early days. As businesses have attempted to apply blockchain to larger enterprise class problems, some of the limitations of early blockchain implementations have created perception issues with blockchain, specifically the following: Blockchain transaction costs are perceived as high. Blockchain cost model is perceived as unstable. It didnt take long for the power of blockchain and the unique capabilities it brings to the table to be recognized. The first attempts to apply the power of an immutable distributed ledger to solve real world business problems simply started with Bitcoin. Implementation of business use cases were attempted by adding data to the memo field of the coin. Soon after that, projects began to fail as enthusiasm for the new technology ran aground on the hard rocks of the limitations of the original Bitcoin implementation. When Bitcoin is used in the context of complex business use cases, problems appear. When blockchains designed to track tokens are jury rigged to support enterprise applications, all of the problems with blockchains youve probably been told about will rear their ugly heads. In the wrong context, blockchain soluti Continue reading >>

Ask Hn: What Problems Does Blockchain Solve? | Hacker News

Ask Hn: What Problems Does Blockchain Solve? | Hacker News

Ask HN: What problems does blockchain solve? 76 points by bvod 8 months ago | hide | past | web | favorite | 68comments People seem to be raving about blockchain technologies and new startups are popping up to apply it to new industries every week. How does blockchain actually help a sector like healthcare, finance, retail, etc? Are there examples of where having a decentralized data store solved major pain points? The blockchain keeps track of who owns what, even as those things change hands, without requiring some central body to keep track of it all. The easiest way to think of it is an instant, incorruptible market that somehow magically just works. To know why that matters you have to understand the problem(s) it's solving - it's something people have been working on since the beginning of money, but there are so many edge cases we usually ended up just going back to a centralized authority. In the past you've needed something like a bank or a government or a company to have the authority to declare, with authority, "Person x owns the title to that house." There are a few problems with that: They could do things to screw everything up (a government printing currency and causing inflation), be corrupt (countless examples), or perhaps not even exist because it's too much effort to create, set up, and monitor some body. With the blockchain, the software everyone runs keeps track for everyone else in an incorruptible way (yes this is a simplification), so you're free to make changes (or transact) without having someone in the middle to wait for, and with no one that can really screw things up. Just boom, instant marketplace. The most obvious thing you'd trade on a blockchain is some kind of asset - a cryptocurrency is the main example, or titles or stocks or something Continue reading >>

5 Startups Solving 5 Of Humanitys Biggest Problems Using The Blockchain

5 Startups Solving 5 Of Humanitys Biggest Problems Using The Blockchain

Swapy Network is providing Universal Access to Credit using blockchain technology. Find out more about our upcoming ICO. [ www.swapy.network ] 5 Startups solving 5 of humanitys biggest problems using the Blockchain Satoshi Nakamotos Bitcoin Whitepaper marks the begining of what became known as the Web 3.0, the internet of value. Barely did he know that he was giving humanity not only a way of transacting with each other without relying on intermediaries, but a tool to solve some of humanitys biggest problems which gave rise to an explosion of innovation in different sectors. In essence, blockchains are good for three things: Store of Value, Transfer of Value and Transparent record of transactions. Here are 5 teams working to solve 5 of humanitys biggest problems using the Blockchain: 1. Solving Universal Basic Income: Universal Basic Income (UBI) is the idea that every individual in the world, rich or poor, should be given a stipend that covers his/her basic needs. With the increasing income disparity and the upcoming wave of unemployment caused by AI and Automation, this will become one of the biggest problems of our generation. Strangely enough, I did not find any team using the blockchain to work with the idea of UBI. But a person which is a reference in the subject is Facebooks co-founder Chris Hughes , who recently launched a book called Fair shot: 2. Democracy Earth solves voting and democracy: I am big fan of what the guys at Democracy Earth are doing. Just look at the state of Western Democracy in the last 10 years and you will see that there is a crisis of confidence. On the other hand, Democracy Earths technology enables Liquid democracy, which means that a person can vote and delegate the power for an individual or group to represent the voter in the specifi Continue reading >>

Tech Thinks It Has A Fix For The Problems It Created: Blockchain

Tech Thinks It Has A Fix For The Problems It Created: Blockchain

Tech thinks it has a fix for the problems it created: blockchain Originally published April 8, 2018 at 5:00 pm The first blockchain was created in 2009 as a new kind of database for the virtual currency bitcoin. Now, innovators are looking to use similar databases to solve some of the most intractable issues facing society. SAN FRANCISCO Worried about someone hacking the next election? Bothered by the way Facebook and Equifax coughed up your personal information? The technology industry has an answer called the blockchain even for the problems the industry helped to create. The first blockchain was created in 2009 as a new kind of database for the virtual currency bitcoin, where all transactions could be stored without any banks or governments involved. Now, countless entrepreneurs, companies and governments are looking to use similar databases often independent of bitcoin to solve some of the most intractable issues facing society. People feel the need to move away from something like Facebook and toward something that allows them to have ownership of their own data, said Ryan Shea, a co-founder of Blockstack, a New York company working with blockchain technology. The creator of the World Wide Web, Tim Berners-Lee, has said the blockchain could help reduce the big internet companies influence and return the web to his original vision. But he has also warned that it could come with some of the same problems as the web. Blockchain allows information to be stored and exchanged by a network of computers without any central authority. In theory, this egalitarian arrangement also makes it harder for data to be altered or hacked. Investors, for one, see potential. While the price of bitcoin and other virtual currencies has plummeted this year, investment in other blockchain Continue reading >>

Here Are Some Problems That Blockchain Can Easily Solve

Here Are Some Problems That Blockchain Can Easily Solve

Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. The revolution of AI and robots is a proof that mankind has already taken a huge leap forward. We see Thomas Edison as an epitome of invention and innovation but the fact is that even he would go crazy if he would have visited the world today. A decade ago, the .com boom shook the world in a way nobody couldve imagined. Many were obnoxious thinking it would end up taking away all the jobs present out there. On the contrary, it ended up creating avenues that were unimaginable for the common man. Blockchain technology is one of the upcoming avenues that will change the course of how.com used to work. It is already causing many industries to opt for its platform and giving a major breakthrough. There are several other technologies that can be brought under the umbrella of blockchain and most importantly, for the industry mainly into tech and digital arena. Deloitte, a company which is known as one of the four pillars in the taxation industry of the whole world, is moving fast to introduce blockchain into its platform because of its highly efficient use of data analytics. In an interview with the English channel The Street, Deloittes CTO, Bill Briggs said, Blockchain is going to bring about a major revolution in whichever field we could think of but most important of all it would bring about the change in the way we are visualizing things at present. Oculus industry like the VR and AR industry is going to revolutionize peoples lives as tablets and laptops did. Bill Briggs is not wrong. Blockchain technology is reaching to almost every leading industry. On one hand, there are companies that are creating a new blockchain trading Continue reading >>

What Problems Does The Blockchain Solve?

What Problems Does The Blockchain Solve?

From the course: Blockchain Basics Join Jonathan Reichental for an in-depth discussion in this video, What problems does the blockchain solve?, part of Blockchain Basics. - We've discussed that a core characteristic of a traditional database is that it typically has a central authority that governs it. For instance, all rights to a database are owned by the organization that creates it. They can decide who has access and what type of access that they can have. They decide what is stored in it, what is deleted, and what is archived. However, this has at least two potential flaws to it. First, if a system relies on a central database, this can result in a single point of failure. In other words, if either the central authority is compromised or a backdoor is exposed, the database can be subject to all manner of risk. The second major flaw is that all power is held by the central authority. Now, in general this is okay. For example, if you run an e-commerce website, you probably want total control over it. Your own central authority, perhaps you as CEO, gets to decide all aspects of that environment, including shutting it down if that's what you want. What central power can do, however, is create control that limits access, say by being cost-restrictive or requiring special skills, by creating onerous human checks and balances, like approval workflows. In most cases, by extension, humans remain the final arbiter of the validity of a transaction. We see this in most contract work. A contract between two entities completed over the Internet still requires one or more central authority to validate data. For example, with a mortgage, banks must validate savings and approve loans. Title companies must validate properties. And legal professionals must validate signatures and ot Continue reading >>

What Problems Does Blockchain Technology Actually Solve In Insurance?

What Problems Does Blockchain Technology Actually Solve In Insurance?

What problems does blockchain technology actually solve in insurance? Only three years ago didnt it seem like blockchains could do just about anything? Even I was writing whitepapers describing smart contract DAO s capable of running insurance entities. Maybe in some science fiction future there will be an insurance DAO, but in the next two years how can blockchain technology be practically used to provide insurance products that people actually need? What attributes do blockchains provide that allows us to create useful types of insurance architecture? NOTE: My perspective in this series of posts is that blockchain technology has value within a narrow context. I am planning to use it to provide small communities of cannabis businesses with the ability to insure themselves . The features I discuss in this article are essential for policyholders who wish to have total control over the day to day operations of a group policy. Most of these features would not be valuable to policyholders who do not need this level of control or require such a high degree of transparency. Every feature on this list is likely unnecessary for traditional insurance products we see in the marketplace today. If you wish to try to apply blockchain technology to a traditional insurance product or service I dont think anything in this series of posts is applicable to the accomplishment of that goal. Hopefully given this context this blog will be more relevant to the right groups of people. New types of assets held by new types of escrows Escrows on public blockchains such as Ethereum are special because the database isnt merely an accounting tool for digital assets but a registry which holds tokens representing digital property. These tokens are assets that fall under the same asset class as that Continue reading >>

Blockchain Technology With Potential To Solve Wall Street's Biggest Problems

Blockchain Technology With Potential To Solve Wall Street's Biggest Problems

Blockchain technology with potential to solve Wall Street's biggest problems Bitcoin is coming to mainstream finance with CBOE and CME futures, and some blockchain startups want to build a prediction platform to facilitate the process Blockchain technology is already proving to be a real solution to some of the biggest problems that investors face on Wall Street. In May, NASDAQ announced that it was collaborating with Citi to develop a new integrated payment solution built on blockchain technology . The goal of the collaboration is to find a way to integrate Citi's global financial network with blockchain technology to create seamless end-to-end transactional process in securities and for increased operation efficiency. This piece looks at another way blockchain technology can make life easier for investors. The biggest challenge for both equities and cryptocurrency investors Probably the biggest challenge that investors face on Wall Street is the lack of credible information for knowing, or attempting to know, what an asset is worth at any particular time. Both retail investors and institutional investors are often forced to grapple with the informational vacuum. Of course, Wall Street traders and investors tend to put a false sense of security in fundamental and technical analysis. However, proponents of efficient market hypothesis have consistently proven that engaging in fundamental or technical analysis is usually a pointless exercise that doesn't influence an investor's ability to beat the market in the long run. In the cryptocurrency market, finding information to make smart investment and trading decisions is exponentially more difficult. For one, the cryptocurrency market is still in infancy and it is hard to access actionable information to know what a crypto Continue reading >>

Blockchain: From The Problems To Solutions.

Blockchain: From The Problems To Solutions.

Blockchain: from the problems to solutions. Blockchain technologies are gradually gaining universal recognition. During 8 years of its existence there was only one bug in 2010 so there is no surprise that different companies are seeking ways to integrate it for their needs. Bitcoin was the first manifestation of blockchain and even those who hate Bitcoin(for example, CEO of JP Morgan Chase Jamie Dimon) understand its benefits. However, are there any disadvantages of this technology? Lets take a look. There are many different blockchains today: Bitcoin, Ethereum, Ripple, BitShares, IOTA, HyperLedger, RChain etc. The first two are the most popular but both have a problem with scalability. The Bitcoin network is able to confirm 7 tx/s (transactions per second) maximum and the Ethereum network 15 tx/s. Confirmation time in the Bitcoin network is fixed and accounts to 10 minutes. Confirmation time in the Ethereum network was 14 s in April 2017 but today it is 29 s. It has increased because the Ethereum network is in a huge demand now, mostly due to lots of ICOs, that run on this blockchain. So, both of the heavily loaded networks have a problem related to full blocks, which triggers a problem of high fees. Can these problems be solved? To the Bitcoin blockchain, Segwit added the function of supporting fast off-chain transactions via Lightning Network and possibility to increase block size up to 4 Mb. However, Lightning Network is currently in a beta state and is not being massively used yet, while 4 Mb blocks are not increasing tx/s radically, plus there is still 10 minutes confirmation time limit. By the way, right now, it is only 7% of all Bitcoin transactions that are Segwit-flagged. Ethereum also tries to deal with the scalability problem through its hardforks Byzantium Continue reading >>

The Truth About Blockchain

The Truth About Blockchain

Contracts, transactions, and records of them provide critical structure in our economic system, but they havent kept up with the worlds digital transformation. Theyre like rush-hour gridlock trapping a Formula 1 race car. Blockchain promises to solve this problem. The technology behind bitcoin, blockchain is an open, distributed ledger that records transactions safely, permanently, and very efficiently. For instance, while the transfer of a share of stock can now take up to a week, with blockchain it could happen in seconds. Blockchain could slash the cost of transactions and eliminate intermediaries like lawyers and bankers, and that could transform the economy. But, like the adoption of more internet technologies, blockchains adoption will require broad coordination and will take years. In this article the authors describe the path that blockchain is likely to follow and explain how firms should think about investments in it. Weve all heard that blockchain will revolutionize business, but its going to take a lot longer than many people claim. Like TCP/IP (on which the internet was built), blockchain is a foundational technology that will require broad coordination. The level of complexitytechnological, regulatory, and socialwill be unprecedented. The adoption of TCP/IP suggests blockchain will follow a fairly predictable path. While the journey will take years, its not too early for businesses to start planning. Contracts, transactions, and the records of them are among the defining structures in our economic, legal, and political systems. They protect assets and set organizational boundaries. They establish and verify identities and chronicle events. They govern interactions among nations, organizations, communities, and individuals. They guide managerial and social Continue reading >>

What Problem Does Blockchain Solve?

What Problem Does Blockchain Solve?

A great deal is being said about Blockchain Technology. But what exactly is the problem does blockchain solve? The main problem that blockchain solves results from the fact that computer databases simply cannot talk to each other without a layer of expensive fault-prone human administration or bureaucratic central authority controlling every node. Blockchain technology, on the other hand, is a single, decentralized database managed by software and shared by multiple users, without any third party authority. This makes processing transactions less costly and less error-prone. This software enables process efficiency because new links can form as needed, and improves organizational efficiency because no management gatekeepers are needed. The applicability of blockchains may include everywhere that many people may want to interact with a computer database. It is easy to imagine a tremendous breadth and depth of potential applications and markets. The traditional way to enable databases to communicate with each other is to consolidate and combine them into a single database, hoping that enough commonality would exist to patch them together. This approach is typical of mergers and acquisitions of corporations where two somewhat similar entities combine their data under a central authority. Efficiencies are gained in scale and elimination of redundancy. Unfortunately, centralization can also lead to inefficiencies such as top-heavy hierarchy, monopoly, obfuscation, stagnation and vulnerability to external shocks. Failures would often trigger blanket legislation and government regulations. Meanwhile, the original problem remains; how do these new mega databases communicate with other mega databases? See also: How Blockchain Will Reorganize Society The other way to eliminate i Continue reading >>

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