🤷 Opinions Katya Michaels

BlockSocialChain: How Blockchain Can Become a Tool for “Little Man”

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Blockchain is a tool for “little man,” but are they really that little?
BlockSocialChain: How Blockchain Can Become a Tool for “Little Man”
Contents

In 1932, the year before Adolf Hitler was appointed as Chancellor, German writer Hans Fallada published a novel called “Kleiner Mann, was nun?”, known as “Little Man, What Now?” to the anglophone reader. Describing the bleak and hopeless socio-economic reality of life in the last years of the Weimar Republic, the book gained immense popularity and continues to be considered a classic of German literature.

Kleiner Mann, Was Nun? Nun is Blockchain

Fallada’s novel is far from being the first or last appearance of the “little man”– the insignificant clerk with a tiny salary, dependent on the system to provide for his family, caught in bureaucratic loops, powerless to change anything about his situation…

This archetype, as well as his conflict with the machinery of governmental indifference and leviathan financial institutions, makes an appearance in most literary and philosophical works of significance from the Industrial Revolution to the late 20th century. Consider works by Gogol and Dostoevsky, Kafka and Dickens, not to mention dozens of dystopian novels.

As Americans discovered in the second half of the 20th century, the desperation born of powerlessness and socio-economic immobility is not limited to the impoverished and the disenfranchised. In the 1950s, the attainment of the American Dream had become marred by a “general lust for conformity” and a “blind, desperate clinging to safety and security at any price,” as author Richard Yates characterized the context that inspired his 1961 novel Revolutionary Road.

The pressure to conform to a limited worldview became its own kind of centralized power, and society’s willingness to give up diversity and freedom for comfort and convenience, hollow as they may be, turned out to be a harbinger of the social media challenges we face in the early 21st century. The modern “little man” of the West has been appeased with adequate bread and circuses, but as it turns out, remains trapped and exploited. What now?

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Catching a break(through)

Technological advances have always been a double-edged sword for human progress, but if there is anything that can help us overcome natural and socially constructed boundaries, it is the application of scientific knowledge. As science and technology advance, people are empowered to strive beyond centralized control to better awareness and freer choices. Telecommunications allowed us to peek beyond our circumscribed worldview, the pill gave women more control over their fate and a better shot at equality, while genetics showed us how our differences are, and are not, defined by a universal human codex.

Blockchain is the next major technological advance that can enable humanity to break from geographic, societal and economic constraints. As more platforms emerge and underlying infrastructure is developed, a device with Internet access and a will to learn about Blockchain applications is all that’s required to become part of the new global economy.

For people in developing countries, access to a secure decentralized financial system, smart contracts and a corruption-proof ledger can make the difference between relentless generational poverty and economic independence through investment or self-employment.

Crystal Rose, a developer and entrepreneur who has been very active in Puerto Rico’s recovery through decentralized solutions, has seen the potential of Blockchain for poverty relief: “My heart is in getting every human to become their own sovereign entrepreneur…. Having seen what kind of impact Blockchain can have on a place that is in need of literally every resource- that's a really big mission.”

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The revolution will be incentivized

All Blockchain-based solutions, whether cryptocurrencies, identity tools or entertainment platforms, are built to incentivize good actors and reward behavior that adds value to the network. The incentives include direct financial compensation to those who choose to be active and trustworthy participants of the economy.

Toni Lane Casserly, one of the most vocal proponents of Blockchain-based governance, emphasizes the way Blockchain will redefine the value of human life: “Looking at another human being and seeing their only value as an economic asset is unacceptable…. The only way we're going to [empower] every human life is if we are fundamentally incentivizing people to have economic liberation through real open markets.”

Thus, as users find more gainful options for engagement in the global economy, big business has to vie for their loyalty and cooperation through incentives, rather than guarantee commitment through limitations. Perhaps, with the help of Blockchain technologies in the 21st century, the “little man” will finally gain independence and call the shots.

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Ghosts in the machines

Before that can happen, though, Blockchain technology has to be more widely adopted. Are people prepared to understand and trust cryptographic ledgers?

Alongside the government and financial institutions, the role played by big technology in the subjection of humanity is another running concern in 20th-century literature. In Brave New World and The Minority Report, in Do Androids Dream of Electric Sheep? and Neuromancer, we have envisioned ways in which advanced technology runs away from its creators.

With a gadget placed in the hand of half the world’s population, constant and omnipresent surveillance has become a reality of modern time, even if governments deny it and users prefer not to dwell on it. According to studies, most Americans think that technology plays a large part in improving life now and in the future, but at the same time they are highly concerned about the implications of increased automation and would like to see big technology companies more regulated.

Keeping new technology on our side, such that can take advantage of its possibilities without letting it corrupt our intentions is a delicate balance. Just like the Internet, Blockchain runs the risk of serving the masters it came to undermine. Truly decentralized public Blockchains are as of yet not the right fit for many implementations, but private Blockchains are more susceptible to manipulation. Overall, whether the benefits outweigh the risks is an evaluation that all participants of the new economy and the emerging crypto community will have to make for themselves.

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B for Blockchain

Only a short time after the publication of “Kleine Mann,” the world was hurled into a series of conflicts culminating in the Second World War. Hitler’s success is attributed in part to the frustrated and demoralized spirit of the German people at the beginning of the 1930s. The revolt of the “little man” against oppression can become a vengeful and bloody affair– when the pendulum of dreams deferred and dignity denied swings back, history shows that it’s easy to go too far.

But Blockchain hailed as the truth machine and as the cryptographic guarantee of trust, may forever change the dynamics of social change. By transparently promoting values of decentralization, inclusiveness, political freedom and economic independence, blockchain might reveal to us that we were never the “little man” to begin with– we just didn’t have the right tools yet. We do now.

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Current Market Shares of Exchange Platforms: Binance Still in Lead

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The latest independent statistics show that Binance is ahead of rivals with 15% of the crypto exchange market
Current Market Shares of Exchange Platforms: Binance Still in Lead

Today, we bring you independent statistics on some of the major crypto exchange platforms and their corresponding market shares this year:

Crypto exchange platforms

The Chinese Binance, now based in Japan, is in lead with 15% of the market, followed by OKEx with around 12%, then it’s Upbit with just under 12%, the Singapore-based Huobi is with just under 11%, the Hong-Kong based Bitfinex with around 8%, followed by other platforms, among them Bittrex (USA), Kraken (USA), and HitBTC (Hong-Kong), all with around 2% of the market.

Roughly a quarter of the market is unaccounted for, i.e. it is comprised of numerous small exchanges, both new and old.

More info can be found here:

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The Egg of Andy Weir

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Blockchain and sharing economy went public in 2009 and are a total success
The Egg of Andy Weir

If the name of Andy Weir does not sound outright familiar, then the movie The Martian will. Andy Weir is the novelist who wrote the book in 2011 that was made into the eponymous movie in 2015.

Weir’s most famous short story, however, that went through another round of popularity with the movie release and that he published on his website back in 2009 is “The Egg”. Tallying at around 1,000 words, the story has been translated into over 30 languages by readers and is still bringing today around 100,000 visits to Weir’s website monthly.

The gist of the story is this. A man dies in a car crash and emerges in a place of nothingness where he meets God. God tells the man he will be reincarnated as a Chinese peasant girl in 540 AD. Not only that, but that the man is constantly going through reincarnations through time and that every person the man ever knew directly, including his wife and kids, by proxy, or indirectly like Hitler and Jesus — they have always been reincarnations of this very man. Every person that ever existed in the universe is this man.

If you haven’t read the story, read it, it’s likely to be worth your time.

The quote of particular interest is where God explains to the man why the universe exists the way it does:

I looked you in the eye. “The meaning of life, the reason I made this whole universe, is for you to mature.”

“You mean mankind? You want us to mature?”

“No, just you. I made this whole universe for you. With each new life you grow and mature and become a larger and greater intellect.”

“Just me? What about everyone else?”

“There is no one else,” I said. “In this universe, there’s just you and me.”

You stared blankly at me. “But all the people on earth…”

“All you. Different incarnations of you.”

“Wait. I’m everyone!?”

“Now you’re getting it,” I said, with a congratulatory slap on the back.

“I’m every human being who ever lived?”

“Or who will ever live, yes.”

“I’m Abraham Lincoln?”

“And you’re John Wilkes Booth, too,” I added.

“I’m Hitler?” You said, appalled.

“And you’re the millions he killed.”

“I’m Jesus?”

“And you’re everyone who followed him.”

You fell silent.

“Every time you victimized someone,” I said, “you were victimizing yourself. Every act of kindness you’ve done, you’ve done to yourself. Every happy and sad moment ever experienced by any human was, or will be, experienced by you.”

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Sharing economy formation

Again, the “The Egg” is Weir’s most famous story and it was relatively popular before the book and the movie The Martian. Why though? I am going to try and give this a little perspective and whether it’s a stretch, of course, entirely up to you, but it might be worth a little ponder-over.

Andy Weir published the story on his website in 2009, and the date is almost at the crest of the wave of the sharing economy formation as a concept and roughly at the foot of the sharing economy implementation in various models.

The term ‘sharing economy’ started appearing in the early 2000s and some sources attribute the first use of the term in public to professor Lawrence Lessig.

Sharing economy was a novel idea and required a leap of trust that took a lot of people to make, and it took years for a lot of users and investors to grow on.

What’s interesting though is that the concept took a firm root around the same time when the global financial crisis peaked in 2008. When the trust went away from the vertical structures — institutions — and splashed into the state of distributed, social, and horizontal.

If we list a few examples of companies that immediately come to mind when we talk sharing economy, the dates of when they started are telling:

  • Kickstarter — founded in April 2009

  • Uber — founded in March 2009

  • Airbnb — founded in August 2008

  • Indiegogo — founded in 2007

  • BlaBlaCar — founded in September 2006

With the collapse of the vertical trust flow came the great new realization of distributed trust models in which people made the great leap and started trusting each other — allowing complete strangers into their apartments, sharing long-distance car rides with someone they never knew, and giving money to people through a website simply because they liked the idea of what was promised and didn’t need or want corporations to shove a new product down their throats.

Did people shortcut the empathy distance and realize they were all more or less similar and closer to each other with the rise of the sharing economy? They arguably did.

This was the time when Andy Weir published “The Egg”, the story that says:

“Every time you victimized someone, you were victimizing yourself. Every act of kindness you’ve done, you’ve done to yourself. Every happy and sad moment ever experienced by any human was, or will be, experienced by you.”

What’s extremely interesting is that the Bitcoin network went live in January 2009. It’s fascinating how much time the humankind and the ideas move in unison and do so without realizing it. The implementation of Blockchain, a trustless public ledger, that should be — or already is, depending on what project you follow — the backbone of the distributed, social, and horizontal trust happened at the same time that the implementation of the sharing economy started. Both the Blockchain technology and the sharing economy became a success.

When you check the timeline and put “The Egg”, the collapse of vertical trust, the sharing economy, and the Blockchain technology in the same row, you realize we are talking the same thing. U°Community believes the next wave of development and progress is in establishing transparent and immutable paths for the flow of the energy of trust for the communities — which are the now of the world progress — to truly thrive.

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CryptoKitties Co-Founder Benny Giang: Spend a Week Understanding Why Crypto Matters to You

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How much psychology is involved in the crypto industry? Do ICOs have a future? What’s the next thing?
CryptoKitties Co-Founder Benny Giang: Spend a Week Understanding Why Crypto Matters to You
Contents

CryptoKitties’ co-founder Benny Giang philosophizes on the kitty’s latest adventures, Vitalik Buterin, cats and wallets, cryptopsychology and incentivizing Blockchain adoption, and revolutionizing ICOs.

Cryptophychology

Cyril Gilson: How much psychology is involved in the crypto industry? I think there is a lot of talk about finance, trading, these kind of things but people underestimate the role of psychology.

Benny Giang: Well really what got me into it was, when I first started to dive deep into Blockchain, it wasn’t necessarily the technical aspects that drew me in, what drew me in was the philosophical approach on why does this matter, why does this technology matter. Then the psychology of it, the whole game theory, incentivizing behavior and trying to solve the classic problems in computer science that have been so difficult to solve, like the Byzantine Fault Tolerance or the general problems.

These things in combination are so interesting to see. I would encourage to listen to a couple of Vitalik’s talks. Vitalik along with a couple other people are really really smart. He is super deep into economics and he is also deep in philosophy and then he talks about the technical aspects.

One of the things I encourage for new people who have no clue what crypto is, is for you to spend the first or second week to try to understand why it matters to you. Why do you care about it? With anything you do in life if you don’t understand why you care about it, then why are you doing it? Besides money. Why is this technology going to change everything?

That took me about two weeks to really just keep asking myself that question and reading more until I found that answer and I was like okay this is the reason why!  

I encourage you to read Naval Ravikant, the founder of Angellist, he has a lot of tweet storms about crypto. Andreas Antonopoulos, he is amazing. He did a talk, and the whole talk wasn’t about Bitcoin it was about why does this matter. It’s about decision making, collective decision making, where a corporation is a group of people making decisions, or back when kings and monarchies when one or two people or family.

Understanding why is so important and then you can dive in the technical aspect. Then you could go to these conferences and network with people. If you don’t then you are coming in for the wrong reasons I think.

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Kitty goes to the market

Cyril Gilson: How are things going with CryptoKitties lately?

Benny Giang: Well we recently just raised 12.6 mln venture funding. We had investors from Silicon Valley and Union Square from New York City. Chris and Fred have been super helpful in really guiding us, we have a bunch of angels as well.

Right now we are focused a lot on growing CryptoKitties to new markets. We are going to be launching the Android version very soon in China. We have been exploring Japan and Korea. We have been talking to lawyers and figuring out the crypto and the gaming laws that exist in those two areas.

But really for CryptoKitties we want to expand this concept of KittyVerse. KittyVerse is third party developers who are building on top of CryptoKitties. So imagine that you buy a CryptoKitty from CryptoKitties ICO, right from the marketplace, and then you can use the same kitty you bought to raise it. You can play a racing game, you can play a battling game, you can put a hat on your cat. And so these experiences are built by third party developers who are part of our community.  We call this the KittyVerse because they play the game as well, they are incentivized to create content and experiences for the kitties. So that’s Kittyverse!

At the core of CryptoKitties is making it easy for people to come in and buy a kitty. Right now if you come into the marketplace there is over 750,000 kitties, so it’s a little bit difficult for you to select the kitty you want or you don’t know which kitty you want to buy.

Imagine Amazon where instead of curating things they suggest you to buy, they had millions of items just displayed in a list and they are like ‘hey go buy it.’ That’s gonna be a huge problem! We are actively solving it on the CryptoKitties side.

On the other side we formed a team to really look at the full UX experience. So that includes everything up until you are interested in CryptoKitties and then you need to buy crypto, you need to buy Ether, and then you need to download metamask to play the game, and then you go to the marketplace. So the team is looking at every single step and seeing what can we do to make it better, make it smoother. What kind of tools can we create to bridge this gap, so the its seamless?

The ideal experience is you have a credit card and you can buy a kitty. But right now you capped your card and you need to buy crypto, then you need to buy a cat. The US is a huge unwrap for us, and we are working on both of these things.

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Not a joke

CG: I was just thinking that you might consider some other project besides CryptoKitties? Because for many people it’s still a joke, for some at least.

BG: Well the funny thing is that CryptoKitties has always been an experiment. We are part of a larger parent company called Axiom Zen based in Vancouver, Canada. Axiom Zen is a five year old company, venture studio, it’s a startup that builds startups. So previous to CryptoKitties, we were building B2B Saas companies. We worked with fortune 500 companies to build ventures and products together, then we took the revenue from these fortune 500 partnerships and then we built our own startups. We spun out two startup companies, and they are both profitable.

Around last summer we started poking around: let’s explore Blockchain, let’s explore what we can do with smart contracts. So we built CryptoKitties and we decided we are not going to do an ICO, because everything last year was the price of Bitcoin, ICOs and the hacks and scams that were happening. That’s really here in Coindesk and Cointelegraph. We were like it just can’t be like this forever, there needs to be more real products that are building their shipping code and building real products. So we didn’t do an ICO, we launched a product, a Blockchain game.

For us it’s always been about education and mainstream adoption. If we can get your mom and dad to think about and get excited about Blockchain and crypto means our mission has gone right. Frankly a lot of people have struggled to explain Bitcoin, Ether, especially smart contracts to your mom and dad or whoever, they just don’t understand or are uninterested.

We had so many emails sent to us like the boyfriend is in crypto, my girlfriend never understands what I do, I tell her about Bitcoin, but she doesn’t care. Then we get an email like I told her about CryptoKitties and she is all like I wanna buy one, and she went through the floor of buying a kitty, and she was like wow now I own this kitty, and she got interested!

For us that’s perfect, that’s what we want. We want a billion people, a billion consumers to be on the Blockchain. We are not targeting a few 100 people who would download a crypto wallet app or a 1,000 people who want to use a fintech investment app. Not everybody in the world are investors, there are more gamers than investors out here.

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Beyond ICOs

CG: Last year was a year of hype but now comes some sobriety, ICOs are becoming more like VC investing, those people from VC are getting more like ICOs in a way. So do ICOs have a future?

BG:So ICOs to be clear are an amazing funding mechanism that allowed people from areas in the world that don’t have access to VC funding to get to raise money to build their own businesses. I have heard many stories of people in Singapore, Indonesia or some place in China, they are just not in Silicon Valley where they could walk to the office of a VC firm and ask for money.  So ICOs are a revolutionizing funding for business and companies.

That being said there were so little parameters around ICOs that there were a few bad players that took advantage of ICOs and just ran away and took the money and bought expensive cars. It’s the mentality that kind of was set by some of the early crypto people, where they spent a lot of their money on Lamborghinis. There was at New York Blockchain week, Consensus 2018, they had a boat party and the Aston Martin Giveaway. We look at it as a team and we are like sure those things are really cool but for us if you think that perspective ‘I want to be at a boat party, I want to win a Lambo’ it’s just really toxic kind of behavior.

CG: It doesn’t help with adoption...

BG: Exactly it doesn’t help with adoption. Then you ask yourself a great funding ICO mechanism to help business around the world to acquire capital, to build business, now people are just taking the money and running. We see people facing the consequences, like those guys in Miami who ran away with $12 mln and then the FCC came after them and now they are in jail. Those are some examples of like you taking advantage of many many many people who invested in your project and ran away with it. You certainly can’t get away with it.

So from my opinion regulation is good for ICOs. There needs to be more proactive regulation that allow for ICOs to happen, but happen in a way where it’s more safe for the normal person who wants to buy into an ICO.

The second thing is, Vitalik Buterin had this concept of a decentralized autonomous ICO, where the community that bought the tokens of your ICO, that they get to control the percentage that is basically given to the team. They are like this month we wanna give five percent of this money to the field of development and the community controls it. Now that’s just one example of kind of taking the ICOs and raising money but then having responsibility in place where people can’t run just run away very easily.

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The next thing

CG: The next thing is another way of tokenization...what do you think?

BG: There are people still building protocols who want to raise money. There are people who are building dapps on protocols who want to have tokens. For us it’s the CryptoKitties they are non-fungible tokens, they are ERC7-21. People are thinking CryptoKitties is a digital asset, it’s a gaming item, but its a digital asset so a lot of people are exploring this space.

Now there is also this hybrid. I have seen these people basically using a hybrid approach of I have a Van Gogh painting and I want to tokenize it, so then multiple people can buy parts of the Van Gogh like a token, and then we lock up the Van Gogh somewhere where nobody or one person or multiple people have access. This kind of hybrid approach of a physical item being tokenized is something that is challenging. You can say the same for real estate or registering your land.

These are physical things that have existing systems in place that people now want to tokenize, but it’s going to take some time to do that. We picked a digital world where you can create a digital item and then you can tokenize it. Everything is digital because in the future there is going to be a combination of physical and digital, as the Internet and the Blockchain get bigger, they allow for digital assets to exist.

Soon enough it will be like Ready Player One or West World where people can live in two worlds and own things in two worlds. It can be just as real as the physical world.

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Kitty and the wallet

CG: So you are interested in arts?

BG: Right now we are focused in three areas. It’s the crypto area, the gaming area and the arts area. We are going to be in an art exhibit in Germany, I forgot the city, it’s a very big exhibit for contemporary art. In September we will be back in Berlin at the Schlinker Pavilion, and we will be doing an exhibit with a very famous contemporary artist. That is to say that this is not only a crypto project, it’s a gaming project and its an art project. That is just building the dialog just think of this as a digital asset, it’s not just one thing.

CG: Is the coming arts project going to be digital art as well?

BG: It’s still early to tell, I think it will be a combination of physical and hardware. Two weeks ago we were in NY and we had an art auction for the Ethereal Summit. We had a Christie’s auctioneer there and we sold a kitty for $140,000. That all went to charity to help artists to fund art projects. It’s not the first time we had Kitties raise lots of money to help charities.

In the beginning, Nick Johnson from the Ethereum Foundation sold one of his Buck hats for $90,000 and he bought a bunch of cows for farms in Africa. A 10-year old girl Bella raised $15,000 and gave it all to Seattle Children’s Hospital in the US. So people are using these Kitties to really solve big problems and help other people and teach other people. It’s more than just the image, it has something deeper to that.

For us the whole art angle, digital asset is very interesting and you can have a hardware wallet. Right now you think of the hardware wallet it looks like a usb stick, now they work but they don’t look that cool. But imagine a Tamagochi, which is a hardware wallet, and you can put your kitty in it. Imagine all the people playing our game, but the normal consumers- maybe your children, will want to carry it around. Its my kitty I own it and it’s in a Tamagochi device. They would want to carry the ledger around then right?

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User experience

CG: How secure is it?

BG: We haven’t built it yet. It’s just an idea. If someone robs you they steal it. If someone robs your ledger they also steal it too, right? When you bring it to the physical world whether its a software or a hardware wallet you always run that risk. Losing your phone, you lose everything right? People have lost millions of dollars.

That actually brings us to the point that user experience for a crypto is really difficult as I mentioned. This one area specifically about decentralized wallets and key management, people can’t even remember their own passwords. People use the same password all the time, so if you tell someone you shouldn’t use the same password, you shake your head ‘yeah that’s true’ but then you still use the same password. Then you go tell a normal person, hey remember your safeword and your private key, and make sure you don’t forget it or you lose all your money. That’s just too much to ask from a normal person.

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Bitcoin Not Going Anywhere: Its Computing Power as Awesome as Ever

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While some may claim that Bitcoin’s reign is over, here we explain why it cannot possibly be the case
Bitcoin Not Going Anywhere: Its Computing Power as Awesome as Ever
Contents

Bitcoin’s price is now at around 4000 USD, the lowest figure in over a year, showing a sharp decline of 1500 USD only in the last three weeks. Some claim this is Bitcoin’s finale at last. They are dead wrong. And here is why.

Blockchain vs. Crypto

What must be made clear is that Bitcoin is a cryptocurrency, but more importantly, it is also a Blockchain. What’s the difference, some may ask? Well, a substantial one, in fact. While one (i.e. a crypto coin) depends on the other one (i.e. a Blockchain) for its very existence, they are not the same, and one does not necessarily imply the other.

Some companies might have their own Blockchain platforms but not have their own cryptocurrencies as such. Take Tether, for example, which is the eighth biggest cryptocurrency in the world by market cap and the second most traded one after Bitcoin. While Tether, indeed, has its own Blockchain, technically speaking, it lacks an own crypto coin in a true sense of the word, as its token USDT is a stablecoin pegged against the US dollar, which gives it a fixed value.

So, in actuality, while Tether is the biggest player on Bitfinex for all crypto to fiat exchanges, and it uses its own Blockchain to execute business, at the same time it relies not on its Blockchain but rather on the US Department of the Treasury and the Federal Reserve to provide value for its token. It is, therefore, a major Blockchain player with a hypothetical digitalized fiat currency.

In contrast, take Maker, for example, whose digital currency is the second most valuable currency in the world today after Bitcoin in terms of price. Apart from also having a USD-pegged stablecoin Dai in order to fight off volatility, Maker’s main crypto unit is its altcoin MKR, which is an independent cryptocurrency in its own right, and an expensive one at that. Be that as it may, Maker doesn’t have its own Blockchain: it is using Ethereum’s. The same goes for Electrify.Asia and its token. So, there are plenty of companies with their own cryptocurrencies that have no Blockchains of their own.

Bitcoin’s True Power Revealed

Now that we’ve made it clear that Blockchain and cryptocurrency are not one and the same, let’s look at Bitcoin again. While its current price is down, its Blockchain is as strong as ever. In other words, Bitcoin the crypto coin may be in decline, but Bitcoin the network is doing just fine. How fine exactly shows the graph below:

image

In order to move external data onto a Blockchain and form blocks, cryptographic hashing is used. It is a computational process of converting information into an arbitrary 256 character output, with one single output being equal to one hash. TH/s refers to one trillion such hashes per each second of computation. And as the graph reveals, Bitcoin’s average for this month is around 47 million trillion or 47 quintillion hashes. This is the number:

47 000 000 000 000 000 000 of 256-character hashes every single second.

This is a staggering figure by any standard. Bitcoin’s Blockchain is extraordinarily powerful, undoubtedly so. Yes, there is a drop from September’s and October’s averages, which were roughly 51 quintillion hashes per second. But Bitcoin’s hash rate today is as good as the one from this August; in fact, it is three times higher than the figure from this January when Bitcoin’s price, let’s not forget, was more or less at its all time highest. So, right now the price is down… but the power is way up.

Conclusion  

To make things even more straightforward, let’s use a simple analogy. A Blockchain can be considered a stadium where a game is played, whereas a cryptocurrency is the actual game. This game can be a game of football (coin A) or rugby (coin B) or, say, polo (coin C) or anything else athletically appropriate, and it can be played on any stadium whose size and specs fit, i.e. on any suitable Blockchain.

Likewise, a stadium can have its own team playing a game on it (own cryptocurrency), or it can be rented out to other teams for their games (e.g. external tokens on Ethereum), or there might be a game with the constant score of 1:1, such as with stablecoins… or there might even be no active game at all, in theory.

The main point here is this: Bitcoin’s game may be down at present as its team is going through some rough times due to injuries and whatnot. However, most certainly, its stadium is a humongous architectural marvel. Granted, never say never, but, in all likelihood, this gargantuan structure is not going to be demolished any time soon. Bitcoin with its vast digital infrastructure is here to stay.

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Alexander Goborov

Selected Cryptocurrencies: Volatility Figures for the Past 3 Months

With more and more traders resorting to minor altcoins for business, these new volatility figures are sure to be of use to many
Selected Cryptocurrencies: Volatility Figures for the Past 3 Months

Volatility is an important parameter to consider whilst preparing to conduct trades, especially with lesser known currencies that these days are bought and sold every hour as a promising pathway to quick profits. It shows how unstable any given cryptocurrency’s market price is and how much periodic price figures deviate from the average, which can be seen by percent.

If you take any column of price values, calculate their average (i.e. mean), then look at how much each value is different from that average (i.e. get the deviations), square all those deviations and, in turn, calculate their own mean, you will get statistical variance. Calculate the square root of that variance, and you will get what is known as standard deviation. Turn that standard deviation into percentage representations, and here is your volatility.  

Having processed prices of the selected altcoins taken at five minute intervals for the past three months and calculated their respective variance and standard deviation, our partners Datalight are now providing their corresponding percentage figures, i.e. the volatility, with market cap ratings relevant to the time of the statistical analysis having been written underneath:

VOLATILITY GRAPH

MobileGo (MGO), Holo (HOT), LockTrip (LOC) are all at around 60%; Haven Protocol (XHV) and Energi (NRG) are at around 70%; Smartlands (SLT) is at around 80%; Nasdacoin (NSD) and Everipedia (IQ) are at around 90%; Etheera (ETA) is at around 110%; and finally, Box Token (BOX) is at over 550%, very volatile indeed.

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