Sf bitcoin devstudy
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In this general overview article intended for non-experts, I define blockchain sf bitcoin devstudy and some of the key concepts, and then I elaborate four specific applications that highlight the potential economic benefits of digital ledgers. These applications are digital asset registries, blockchains as leapfrog technology for global financial inclusion, long-tail personalized economic services, and net settlement payment channels. I also highlight key challenges that offset the potential economic benefits of blockchain distributed ledgers, while arguing that the benefits would outweigh the potential risks.
The overarching theme is that an increasing amount of sf bitcoin devstudy operations involving money, assets, and documents could start to be conducted via blockchain-based distributed network ledgers with cryptographic security, and at more granular levels of detail.
One economic implication of widespread blockchain adoption is that the institutional structure of society could shift to one that is computationally-based and thus has a diminished need for human-operated brick-and-mortar institutions. Blockchain distributed ledger technology is a network software protocol that enables the secure transfer of money, assets, and information via the Internet, without the need for a third-party intermediary such as a bank Swan, Transactions are validated, executed, and recorded chronologically in an append-only tamper-resistant database, where they remain available on the Internet for on-demand lookup and verification.
A digital money system such as Bitcoin is the first and perhaps the most obvious application of blockchain technology. Money can be transferred immediately in real-time from one continent to another, at very low costs, and in a matter of seconds or minutes, instead of waiting days or weeks, and paying high commissions, as is the case with current international money transfer and remittance solutions. Just as the simple mail transfer protocol SMTP constitutes the underlying protocol by which Internet users can send an email to each other in a seamless and interoperable way, regardless of their email provider, sf bitcoin devstudy, the Bitcoin protocol allows people to seamlessly transfer money to one another, regardless of their bank.
However, digital currency is but one application enabled by blockchain technology. The four main kinds of applications in development are real-time money transfer and payments, property registries, contractual agreements, and identity confirmation. The terms blockchain and distributed ledger technology are often used interchangeably. Distributed ledger is the general form of the technology, and blockchain is a specific form with an additional technical detail.
Both refer to the concept of a ledger— a file that keeps track of who owns what. A distributed ledger has four salient features: There are two kinds of blockchains: Anyone may use public blockchains such as Bitcoin and Ethereumand identity is not known. Private blockchains are analogous to a corporate intranet, used by industry consortia and governments, where users are known and credentialled.
Cybersecurity could be one of the biggest drivers of blockchain adoption. Recent breaches — the private data of an estimated Centralized databases provide an attractive target for hackers, whereas it is possible that decentralized storage records protected by cryptographic signatures on sf bitcoin devstudy might dramatically improve network cybersecurity. Greater user control and permissioning of personal data is an expected feature of decentralized solutions.
Blockchains are smart networks that confirm and transfer value directly, without third-party intermediaries. The result is a trustless system in that the human sf bitcoin devstudy and institutions involved do not need to be known and trusted. Instead, trust is placed in the computational smart network system, which could help to create next-generation cybersecurity solutions. Following digital currencies and money transfer, one of the biggest blockchain applications in development is digital asset registries.
The same distributed ledger technology provides the means to record and transmit digital goods over the Internet, while ensuring that these goods cannot be copied or multiplied thereby addressing the double-spending problem that has been an issue with digital currencies previously. A digital asset registry is a listing of smart assets also referred to as sf bitcoin devstudy property. Digital asset registries might use blockchains extensively as a system to record, transfer, and verify asset ownership.
This could include titles for automobiles, homes, and land. Some countries have pilot programs sf bitcoin devstudy, notably Georgia, Ukraine, Sweden, and Ghana Reese, There are property transfer issues and also legal implications. A blockchain can be used as a digital registry to record, transfer, and verify asset ownership home, auto, stocks, bonds, mortgages, and insuranceand also to preserve the sf bitcoin devstudy and authenticity of sensitive documents or records e. One of the highest-impact applications of blockchains could be as a leapfrog technology for global financial inclusion.
It does not make sense to build out brick-and-mortar bank branches to every last mile in a world of digital services. Even without phone-based banking, low-cost debit cards might effectively service the unbanked Rogoff, The leapfrog impact could be significant as banking services are bundled together with identity services and sf bitcoin devstudy registries.
The United Nations sf bitcoin devstudy that 1. Land titling and property transfer systems have been identified as a crucial step for economic development de Soto, The adoption challenges are perhaps not always technical as much political given that solutions are only sf bitcoin devstudy to the extent that power elites are willing to implement them Chua, A demonstration case of digital financial services as a leapfrog technology is the mobile payments market in China.
Debit cards and credit cards were not offered and adopted in China to the same extent sf bitcoin devstudy in other countries, and thus an alternative to cash such as mobile payment has been widely adopted. In an era of blockchain-based digital finance, credit could be a consumer service that is much more transparent, widely available, and synchronized across country boundaries. For example, there could be sf bitcoin devstudy FICO scores, blockchain-based credit bureaus, and blockchains as the backbone of the first international sf bitcoin devstudy agency Swan, Just as sf bitcoin devstudy electronic medical records can be accessed securely anywhere in the world, so too could credit scores.
The impact could be opening up credit markets to retail customers on a global basis. There could be advantages such sf bitcoin devstudy individuals not having to build credit histories from scratch when living in a different country.
But there could also be drawbacks, as not everyone might want to join a global credit system although one that is more transparent and user-controlled might be more welcome. The long-tail argument is that, in digital marketplaces, it is possible to sell lower quantities of more items Anderson, Researchers confirm long-tail economics in digital marketplaces, finding that niche books account for They argue that power laws as opposed to Pareto distributions are a better model for digital marketplace sales for books, music, and software downloads.
For the blockchain economy, the key point is that not only are long-tail markets economically viable, but also that there is demand for personalized products and services that cater to individual needs. Previously, one size had to fit all in financial and government services due to economies of scale and other barriers. However, in a network economy with blockchain-based asset transfer, personalized financial and government services might be better tailored to individual needs and wants.
An example of personalized economic services where sf bitcoin devstudy size does not fit all is that, instead of a standard year mortgage, a borrower might prefer a year mortgage that better corresponds to personal life events such as a planned home downsizing once children are grown. Amazon, eBay, and Craigslist are digital marketplaces that allow the long tail of economics to meet in the sense of the buyer of a particular rare item being able to find a seller of that item in a way that would not be possible in a mass-market retail store.
The point is that, in digital marketplaces, buyers and sellers can transact more granular personalized business than is economically feasible in the brick-and-mortar format.
The implication of algorithmic trust, and funds locked or escrowed with smart contracts, is that any two long-tail parties can meet and transact in a secure blockchain-based environment, without having to know each other. Personalized banking, credit, and financial services could sf bitcoin devstudy routine, and also personalized governance services, for example, a closer link between the public services funded and consumed by individuals.
Early evidence of long-tail markets for blockchain services is a September transaction that purports to be the first real asset transfer with a blockchain. US-based TechCrunch founder Mike Arrington purchased a Ukraine-based residence using Propy, a global decentralized property store on the Ethereum blockchain Masse, One of the most intriguing ideas being developed in the blockchain industry is payment channels.
A payment channel is a financial contract executed over time in three steps: The idea arose for micropayments, such as video bandwidth consumption, where piecemeal transactions do sf bitcoin devstudy make sense and an automated contractual arrangement can support aggregate consumption. Contracts close sf bitcoin devstudy roll over at regular intervals. Either party may elect to close the payment channel early, in which case the net settlement would be booked and the contract would end.
Another benefit of payment channels is easing blockchain scalability by only booking the opening contract and the final amount as opposed to interim transactions, while being contractually obligated and protected all along the way. Payment channels are a speculative concept that is under discussion, but the conceptual implications are provocative.
First, the radical implication of peer-to-peer networks is that any node can deliver services to other nodes, for a small transaction fee. This is already how the Bitcoin network operates, with 9, worldwide peer nodes hosting the transaction ledger. The mining operation to confirm and log transactions is another network peer-based activity.
Storage and news hosting are newer network services, and the implication is that payment channels have the requisite functionality to allow peer nodes to offer banking services Dryja, The question arises as to how to treat payment channels from an accounting and legal standpoint.
For accounting purposes, is a payment channel a deferred payment or an installment sale? When during the contract is revenue to be recognized, and what are the balance sheet liability obligations?
Legally, do payment channels constitute assignments sf bitcoin devstudy claims or forward-looking IOUs? A contingent three-part financial contract over time is a new instrument, especially when considering that transfers might exist across multiple hops parties in a directed graph structure of layered contingencies that is based on distributed computing network architectures as opposed to traditional modes of financial exchange.
Other conceptual implications are similarly striking. The idea of economic activity based on net settlement versus gross settlement is intriguing.
What if many more operations in the economy were to transition to a net payments basis? Industry consortia such as interbank daily settlements are tabulated on a net basis. However, what about opening up net clearing functionality to individuals? The idea is essentially an enhanced version of sf bitcoin devstudy direct deposit plus auto-pay bills, just formalized into a multi-party payment contract.
Personal monthly inflows and outflows could be orchestrated by a payment contract that nets salary against expenses and builds in a savings remainder. With money and payments digitized, and activity being securely forward-committed by payment sf bitcoin devstudy, the implication is that net flows instead of gross flows sf bitcoin devstudy be transferred.
An economy based on net clearings or contracts for difference is quite different than the current system, and the risks and benefits would need to be evaluated. A further implication of digitized money and payments is that the standard amounts at which we do business could be much more granular.
This granularity could possibly allow progress in reconceiving the debt juggernaut impacting individuals and institutions alike. Streaming sf bitcoin devstudy could be disgorged in much smaller chunks that are more closely tied to costs and repayment possibilities Antonopoulos, We could similarly reconceive economic modes of consumption and the related financing options.
There could be a reconstitution sf bitcoin devstudy mechanisms for pre-paid consumption a small part of current overall economic activity against the much larger portion of activity that is post-paid and based on credit and terms. Digitized streaming money and payment channels could sf bitcoin devstudy techniques to quicken the 30—60—90 day terms and uncollectible debt problem in supply chain finance, and facilitate a just-in-time economy for sf bitcoin devstudy.
The sf bitcoin devstudy economic benefits of blockchain distributed ledgers are offset with several key challenges. The first challenge is that the technology is complicated. Even the basics are difficult to understand, both conceptually and technically, and this is a barrier to effective decision making and the ongoing implementation and use of the technology.
Second, a variety of challenges have to do with the technical aspects of the technology.
I had an absolutely incredible last two days learning the high level technical overview of Bitcoin. As I've had more and more people lately sf bitcoin devstudy me about how to begin in this space, I wanted to begin this post with a quick recap on how I got to where I am.
My journey into the blockchain world started about 11 months ago midway through December of ; thus I am in the weird "new" by some people's standards and "old" by other people's standards position. A local tech consulting company, Collaborative Consulting now CGIput on an internship competition, a case competition challenging students to come up with the best combination of blockchain and college transcripts.
Interested in winning the competition and securing an internship position, I opted for an independent study during my January term to focus on learning about blockchain technology.
What started as a desire to win quickly transformed into a desire to learn. I found myself engrossed in white papers and side learning tangents, obsessed with understanding every detail about this exciting technology. It is finally time to get serious about developing! The primary focus of this tutorial will be a sf bitcoin devstudy first-principles introduction to cryptocurrency as well as cryptocurrency-specific engineering methodologies, security practices, and standard operating procedures.
The NFL has run out of talent. To solve this problem, they setup a two day bootcamp taught by top NFL coaches and players to educate and train the next level of talent and get them excited about playing pro football. Of course excited and hoping to maximize the situation, Sf bitcoin devstudy prepped for most of the month leading up.
Here is the schedule for the day: While I certainly learned too much to explain here in detail, here is a brief synopsis of what I learned. We started with the most basic elements of any crypto system While it may seem sf bitcoin devstudy a lot, it is in fact a very nice, logical progression. Luckily I had just taken a cryptography class last semester so, I was one of the least confused people in the room. John Newbery, core developer and sf bitcoin devstudy contributor was up next.
He explained the basics behind blocks, the blockchain, transactions, and the mempool. While at times it got technical and down to the byte literally it was fascinating to see how all these moving parts worked together to create the Bitcoin ecosystem. With day 1 done, I had sf bitcoin devstudy pretty good overview sf bitcoin devstudy how the entire Bitcoin system worked; Day 1 was layer 1, focused on the fundamentals of the Bitcoin protocol. Day 2 was layer 2, things built on top of layer 1, ex Lightning Network.
We began with the last of the fundamentals: HD wallets, mining, and common attacks. Most of this was knowledge I had coming into the day and was covered in Mastering Bitcoin. RPC stands for remote procedure call and allows for people to connect and interact with their Bitcoin node remotely. I had always been wondering how this worked because in theory, if I wanted to create a Bitcoin application, it would require me to connect to a node in order to access the Bitcoin network.
This session presented us with a basic application and explained the basics sf bitcoin devstudy interacting with and setting up full nodes. WOW the Lightning Network is awesome!
For those of you who are unfamiliar, at its most basic level, the Lightning Network is a second layer protocol for Bitcoin.
It works by rooting an initial multisig transaction on the blockchain and then setting up a payment channel between two people off-chain. Via a multi-hop architecture, you can then create a network effect between these channels and connect any two people, allowing for fast, private, cheap transactions that don't bloat the Bitcoin blockchain. Following Tadge's explanation of the LN, we got play around with sf bitcoin devstudy live demo!
I received fake bitcoins sf bitcoin devstudy the lightning network from the creator of it!!!!! What a great time! Crosschain swaps allow you to privately and securing transact assets between two different blockchains. This presentation was followed by a simple demo. While exciting, the premise is sort of cryptocurrency laundering at least from some people's perspectives.
Very cool for some people, not so much for the government: I am by no means a Bitcoin expert, and am still years of experience away from being technically skilled enough to be a core developer. However, I am a pretty skilled sf bitcoin devstudy stack developer with a high level technical understanding of Bitcoin. So ultimately, I believe the best way for me to contribute to the ecosystem is to use the skills I have and the knowledge I gained and try to develop layer 2 applications.
Here are some thoughts I have on where to go next and things I want to experiment with:. Now that I am pretty knowledgable in the Bitcoin basics, I am more than happy to help anyone who may be struggling and needs a little bit of clarification!
Like I said, I am not an expert by any means, but I undoubtedly know more this week than I did last week Hope everyone has a wonderful Fall weekend! Special shoutout to all my fellow Steemians at SteemFest! Cheers and Steem on! Sf bitcoin devstudy organize this post I am going to split it up into 5 parts: Since sf bitcoin devstudy, my blockchain obsession has taken me many incredible places: Sf bitcoin devstudy a sports analogy for this situation: Pretty damn cool right?
Let me just say, Sf bitcoin devstudy Stanford's campus is absolutely beautiful. The palm trees, the adobe architecture, the modern buildings I showed up a few minutes early and got a good seat, front and center. We even received some swag as I had secretly been hoping for. However, the second part of the day was incredibly exciting! Here are some thoughts I have on where to go next and things I want to experiment with: Authors get paid when people like you upvote their post.
Trending Trending Votes Age Reputation. Beautiful Post well done.