Will IOTA be better than blockchain

Some researchers are claiming that the exponential increase in cryptocurrency and will bog down blockhain transaction.

Right now, it appears that IOTA is less secure than blockchain for currencies but there are huge investments being made in this blockchain 2 standard. 


What is IOTA?

David Sønstebø Founder of IOTA

The IOTA Foundation is thrilled to introduce an ambitious project that has been in the making since 2015. The Data Marketplace is IOTA’s most comprehensive pilot study thus far. The goal is to enable a truly decentralized data marketplace to open up the data silos that currently keep data limited to the control of a few entities. Data is one of the most imperative ingredients in the machine economy and the connected world.

0*J2uFJPJND7Z72d-8.
Data first

Data is one of the most fundamental ingredients in the machine economy and the connected world. It is the foundation upon which the other strata of the Data — Information — Knowledge — Wisdom (DIKW) Pyramid are dependent. Without this primary substrate, nothing can be established about the world. A datum (plural: data) is the raw value of a qualitative or quantitative variable; a pure unfiltered input from reality. Data sets that are structured and thus have had meaning extracted from them constitute what we consider to be information. Information tells us something concrete and coherent about the world through context. Contextualized information thus makes up what we know as knowledge, which in turn gives rise to our (and our machines’) ability to make wise decisions. Wisdom is knowledge applied.

The illustration above shows how the different echelons of this hierarchy are intertwined. The sensors, here cameras, monitoring the road are receiving signals from the photons reflecting off the surface of their environment. This is data. The measured speed of the moving objects and their relative positions is the meaningful information extracted from these datum inputs. This information is next contextualized and distilled into knowledge, telling the drivers on the road viaOver-The-Air updates that the road may be congested due to a crash, which allows drivers to apply the wisdom to take an alternative route.

Machine Economy

Over the next next decade, there will be more than 75 billion connected devices that interact in different manners. This will give rise to a ‘Machine Economy’ where devices will trade everything from storage, computation/analytics to electricity and sensor data. The data trade in this pilot project will highlight and explore the potential of these developments. With the prospect of tens of billions of devices generating data, we will see a proliferation of data that is unmatched in history.

0*ewF7tVfNFR6s9nbn.

Source: Statista

In 2017 more data was generated than in the past 5000 years combined, and this will rise tenfold in less than a decade. We are truly living in the era of data.

0*lA-0_cfqiLil7nlx.

Source: IDC

0*cCG4Blcv76AFFtLl.
Crudely put, data is the new crude

It is effortless to draw parallels between the tectonic shift caused by the impact of oil and its derivatives in the past century (in terms of giving rise to a fossil-fueled economic combustion engine and mass-production through plastics) with how data will be the catalyst of the economic engine of the future. While every filament of our digital zeitgeist is unequivocally telling us that data is the fuel of the future, there is an important distinction: unlike oil, which is finite and whose properties are well known in terms of what it can produce (and pollute), data is for all practical purposes limitless.

0*pxDayw2TSumqG30v.

We have barely scratched the surface of what kind of data will be generated or what incredible discoveries will be made by the AI algorithms analyzing it in the future. New innovations, precision medicine, synergistic business models, climate change diagnostics, materials sciences advancements and more are already on the horizon. Just as our brains acquire wisdom and knowledge through the information they distill from the data they receive from our sensory organs, so does the world-changing AI paradigm shift require data from sensors to derive new information, knowledge and wisdom.

Data Economy Big Data is Big Business

0*LouxGFqblLB0_Hbn.

The sheer magnitude of data and the influence it has had, and increasingly will have, on our society automatically comes with huge business opportunities that will be worth tens of billions over the next few years. Trading data will be a mutually beneficial exercise that boosts innovation for companies and creates entirely new revenue streams of data that would otherwise simply go to waste.

0*SM1AnS4aXz7IMHm7.
Data wants to be free, but not for free.

The largest obstacle preventing the fulfillment of the grandeur envisaged by ‘Big Data’ is the fact that the overwhelming majority of data remains locked in what is called ‘Data Silos’. Data silos do not, or at best very rarely, share its data outside its own closed environment. This leads to enormous quantities of wasted data, often over 99% is lost to the void, (source: McKinsey 2015) that could potentially contain extremely valuable information if allowed to flow freely in data streams that create an open and decentralized data lake that is accessible to any compensating party.

0*ABQXHV_qo0C12wAu.

There are several reasons for the cumbersome and wasteful status quo. On the one hand, data wants to be free in the sense that its storage and transmission costs less and less over time; on the other hand, large quantities of data are extremely valuable and are not free to generate. These diametrically opposed conditions cause a gridlock that needs to be broken in order for Big Data to become truly big. A major cause of this is the fact that, while data sharing is becoming cheaper from a technological perspective, it is prohibitively expensive to sell fine, granular data in real-time due to intermediary fees — not to mention all the red tape one has to cut through in order to complete a single data purchase. These conditions make real-time data trade all but impossible. By 2025 it is projected that around 95% of all data will be generated by IoT devices in real-time (source: IDC 2017), so this is a pressing issue.

A third obstacle is the lack of ensured authenticity and audit trails of data. Before adoption of Distributed Ledger Technologies, data transmission protocols and databases were susceptible to various attacks, including ‘man in the middle’ attacks and data tampering. Data is only as valuable as it is valid. In short, if the data input is garbage, the output will also be garbage (GIGO).

This is why the IOTA protocol becomes necessary to unlock data’s gigantic potential.

IOTA

0*VGaa9FyVBO1ua8xw.

IOTA’s unique public Distributed Ledger architecture, called Tangle, is a form ofDirected Acyclic Graph in which every transaction or data transmission validates two previous ones, which in turn each referenced two previous ones before them, and so on. This means that validation of the network is an intrinsic property of the network and is thus no longer decoupled from the usage of the network, as is the case with regular blockchain architectures. This removes fees entirely on transactions and data transmissions, thereby removing the real-time, fine-granular payment obstacle. It also ensures costless data integrity, which resolves the security concerns tied to data trading. Additionally, this design means that the network remains entirely decentralized, unlike blockchain architectures which centralize around mining-farms which then further centralize into mining-pools.

This project has roots stretching years back and is now finally ready to begin its first phase with public testing. The Data Marketplace is open for everyone to participate right now, and over the coming weeks we will be opening up an API for the marketplace so that anyone can contribute sensors and build new data-driven applications. Right now, the entire Proof of Concept runs in real-time on the IOTA test network, with full end-to-end data verifiability and security offered viaMasked Authenticated Messaging in the user’s browser.

Over the coming weeks, the IOTA Foundation, in collaboration with several of the marketplace participants, will release additional content. This will include Proof of Concept applications further elucidating how the data marketplace can be applied to different industries and sectors. Most important is the community’s participation, where the IOTA Foundation will host several events over the coming weeks to make the data marketplace a truly global, collaborative effort. The final result of the data marketplace will be a public report including several case studies that go into detail on the potential and the barriers we will face when rolling out a marketplace in full-scale production. Major emphasis will be dedicated to the impact of the EU’s General Data Protection Regulation (GDPR) on the planned future live data marketplace.

The IOTA Foundation is exhilarated to be able to announce that we have several dozen world-leading entities participating in this data marketplace which will run over the next 2 months. We deem it pivotal to have such a plethora of varied data sources from multiple stakeholders participating in this pilot to nurture the blossoming of this seed of potential and move beyond grandiose promises and theory into the real world.

1*hXVg4bMlsVVXJFJ62I_nzA.png
Quotes from the IOTA Data Marketplace participants: Accenture Labs “Today we are working closely with a wide range of key technology providers in the blockchain space and we are happy to have the chance to participate in the IOTA Data Marketplace project. We want to have a deeper look in IOTA technology to grasp hands-on experience and provide our client the right understanding of IOTA and its potential business implications.” -Accenture Labs in Sophia Antipolis Agder Energi “Agder Energi appreciate to be invited to collaborate with IOTA and the rest of the participants. We are excited to get to know the Data Marketplace and explore the opportunities in IOTA’s distributed ledger technology and particularly usage within the energy industry. Will the technology enable P2P trading of power?”
– Rune Hogga, Agder Energi, Project Manager Pilot E Nordic Impact “With the democratization of data through the IOTA platform we see the start of an abundant world. We will move towards a world where we will give people access to clean water, food, energy, health care, education, and everything else that is necessary for a having a good life”. Anders Lier -Chairman Nordic Impact /Advisor IOTA Alpiq & Gridsense The engagement of people for a world with less CO2-emission is important, monetizing their investment into renewable energy-production & -consumption by offering their “Energy-Information and -Flexibility” to a market. With IOTA is “Energy-Information and -Flexibility” getting a pricing and is a real incentive to be a part of a world with renewable energies” APG SGA “We are very excited to contribute with our sensors to this proof of concept. The IOTA data marketplace offers a unique possibility to open up our sensor data to interested third parties and to monetize it through micro transactions. Furthermore, we believe that the IOTA tangle has great potential to introduce a trust and transparency layer in a network of sensors for smart city use cases.” — Jan Berchtold, Head AdTech Lab at APG|SGA Deutsche Telekom “We think it’s a great opportunity for Deustche Telekom to investigate and prototype future blockchain-based, data-driven business models with different partners. Compliance with data privacy regulations has to be regarded at every stage, and IOTA provides the right tech, right now.” — John Calian, VP, The Blockchain Group at Telekom Innovation Laboratories DNV GL Business Assurance “We thank IOTA for inviting DNV GL to join the Data Marketplace Initiative. Fast, efficient and secure machine-to-machine data transactions, including its monetization, is essential in order to unleash the real potential of any solution based on Distributed Ledger Technology, and enable a true sharing economy. We hope to contribute to this revolutionary concept by creating the foundation of a new Digital Assurance concept, leveraging on the value and utility of real time data in a digitally trusted ecosystem,” -Renato Grottola, Global Digital Transformation Director in DNV GL — Business Assurance. Elering “Over two thirds of the people in Europe will have a smart meter in their home by 2020*. This data can be extremely valuable for innovative new services. Elering’s Estfeed platform enables access to meter data and it is fully compliant with data protection laws — end-consumers are in charge of their data, controlling which services can access it.“ -Georg Rute, Development Manager for Digitalisation at Elering AS ENGIE “As a Research Lab, we are very excited to be part of the Data Market Initiative with the IOTA and the Foundation. IOTA DLT is a potential game changer in M2M ecosystems and it could be an effective and scalable technical backbone for transaction between IoT. This Data MarketPlace will allow us to offer new way to expose, consume data. Data Market Place will extend access to data in a fair 360 financial model to a large new community and will provide opportunities for new services for energy and beyond.” -Dr. Ph.Calvez, Head of the Lab for Computer Science and Artificial Intelligence Engie Lab, France. EWE In the age of digital business models and the extensive use of data, we need a secure and responsible way to deal with data. The IOTA Marketplace renders an impressive facility for the self-determined sale of sensor data and uses the advantages of a trustworthy and and fail-safe database. In the energy domain, utilities are at a decisive point. The far-reaching processes of change that have taken place over the last few years in the energy industry as a whole address many fundamental challenges that need to be resolved in the next major step. For EWE AG, it is clear that digital business models make an important contribution to the transformation of energy systems. In particular, the innovation project enera is testing the energy system of the future on a large scale. In addition to smart grids, new market models, and innovative data science methods, new technologies such as IOTA and blockchain also play an important part.” -Dr. Justin Heinermann, Data Scientist EWE AG, Oldenburg Fujitsu “The possibilities of applications based on Blockchain and especially Tangle (“next generation Blockchain”) are immense. Providing public access to valuable data is one of the most pressing challenges within IOT. The Data Marketplace of the IOTA Foundation is one of the most innovative initiatives in this area. As one of the world’s largest IT companies, Fujitsu is strongly supportive by developing Blockchain and Tangle-based offerings and actively integrating them as scalable solutions into the ecosystems of our customers.” — Dr. Rolf Werner, Head of Central Europe at Fujitsu ISBM / ICE Lab “By giving objects the possibility to communicate over the Internet, IoT enables a new generation of processes and scenarios in countless application domains. Among the most disruptive features coming up in the near future is the ability of objects and machines to make decisions about buying and selling data, resources and materials, implementing the so called Machine Economy. An architecture like the IoTA Tangle, able to manage transactions with no fees — and offering at the same time the high security features made possible using Distributed Ledger Technologies — is the missing link needed to make all this come true. ISMB and Politecnico di Torino have cooperated for many years on the application of IoT technologies in domains like mobility, energy, health and manufacturing. We are proud to be among the first users to have the opportunity to add machine economy features to the numerous use cases we find in our applied research activities and projects” Microsoft “ We are excited to partner with IOTA foundation and proud to be associated with its new data marketplace initiative. This next generation technology will accelerate the connected, intelligent world and go beyond blockchain that will foster innovation real world solutions, applications and pilots for our customers”. — Omkar Naik Movimento (owned by Delphi) “In the era of software-defined everything, democratizing trust while maintaining continuous transparency with ecosystem partners and customers will define the winners and losers of tomorrow. The IOTA-based solution will help in democratizing every product as a potential service with full transparency, accountability and immutability of contracts and transactions. Sharing of vehicles and data with full transparency, accountability, trust, integrity, security with undisputed contracts/agreements is going to disrupt the existing centralized cloud-based ride sharing models.” NTNU “We are excited to be a part of the IOTA Data Marketplace in order to develop new business models and solutions to many of the pressing challenges for Smart Cities, including low carbon urban development, renewable energy system integration, citizen empowerment, clean mobility solutions, privacy, and cyber-physical security.” -Patrick Driscoll, Project Developer, Smart Sustainable Cities NTNU Orange “Orange is happy to participate, together with IOTA and partners of this open innovation initiative, to this proof-of-concept of IoT data marketplace as a way to better understand the potential of the Tangle distributed ledger technology.” -T. Coupaye, VP Research, IoT, Orange Oslo Business Region “Smart cities need to learn to leverage available technologies to their benefit. We’re excited for IOTA and their potential for contributing to a green smart city, and to support them further with the ambition to put Oslo in the forefront in this area.” -Silje Bareksten. Head of Smart City Poyry “We are looking forward to the cooperation under this great initiative that aligns perfectly with our #PoyryDigital services development,” says Stephen Woodhouse, Director at Pöyry Management Consulting. “We work with energy companies to prepare for the future business models and to organise the markets for the future. In one vision, the flexibility to operate the electricity system will come from decentralised sources, including millions of household devices. To make this world work, transactions must be near instantaneous and their costs must be almost zero. While Pöyry is working on a number of promising Blockchain initiatives relating to distributed data market solutions, IOTA offers an alternative ‘distributed ledger’ approach, and Pöyry is keen to understand its possibilities. Schneider Electric “Schneider-Electric collaborates with IOTA, as it provides a sustainable technology, to experiment Blockchains and Distributed Ledger beyond the limits of the usual PoC. But theses technologies only remove existing locks. Schneider-Electric actively engages in this Data Marketplace to explore potential new businesses.” Tine We see a great potential to use IOTA within the agricultural sector, and are eager to get more hands-on experience through the Data Marketplace. The support from the foundation has made it very easy for us to participate in this exiting initiative -Michael Fridman Trianel “Distributed ledger technologies provide the opportunity to develop exiting new energy solutions such as platforms for peer-to-peer trading between prosumers and private consumers. So far Blockchains are not living up to their promises — especially in terms of scalability, transaction cost and transaction speed. We trust the Open Data Marketplace will show: Yes, IOTA Tangle can.” -Thorsten Seiferth, Ph. D. — Head of Corporate Development TUM “In Germany, it is still very difficult for research organizations and start-ups in the area of digital mobility services to get access to sensor data at scale and with high quality to develop next generation connected mobility solutions. Our TUM Living Lab Connected Mobility is participating in the IOTA data marketplace to better understand the potential of IOTA to establish a decentralized and compliant market place for mobility data with a decentralized governance structure.” — Professor Dr. Florian Matthes Universidad Nacional de Colombia “We thank IOTA for inviting Universidad Nacional de Colombia, Sede Bogota to join the Data Marketplace Initiative. Fast, efficient and secure machine-to-machine data transactions. We hope to contribute to this revolutionary concept by simulation of a new Digital concept in smart campus” -Javier Rosero Garcia, Director, Research Group of Electrical Machines and Drives (EM&D), Universidad Nacional de Colombia, Sede Bogota. University in Oslo In the Strategy 2020 document, University of Oslo (UiO) has declared several areas of outmost relevance to the work of the IOTA foundation. Worthwhile to notice are “grasp and illuminate societal challenges” and “take a clear responsibility in meeting the challenges facing the world”. What we address through the collaboration between IOTA and UiO are trust and security in the sensor-driven digital world. We see the approach from the IOTA Foundation as a promising technology for ensuring traceability and integrity of data, thus look forward for the collaboration relevant for both our national and international research projects related to security, privacy and trust. -Prof. Josef Noll, Department of Technology Systems, UiO Enexis “Together with IOTA we explore the future and the changes that Distributed Ledger Technology may bring. The data market place makes the usability of the tangle tangible. All data marketplace users are filling the tangle with data with which the developers of tomorrow can build useful applications.
 
As a grid company we believe in the power of sharing and open (free) data to co create beneficial for society. Together with the Iota foundations we are looking for solutions to make data more secure and trustworthy. The datamarket place will play a significant role in our endeavors ” -Jan-Peter Doomernik, sr business developer at Enexis Group (Dutch Grid operator)
One clap, two clap, three clap, forty?

By clapping more or less, you can signal to us which stories really stand out.

12.9K

29
BlockedUnblockFollowFollowing
Go to the profile of David Sønstebø
David Sønstebø

Founder of IOTA

Follow
IOTA
IOTA

Official IOTA blog

This article originally appeared at: https://blog.iota.org/iota-data-marketplace-cb6be463ac7f.

Blockchain: A technical primer

Great info here on what blockchain is, how it works, and possible uses.

https://www2.deloitte.com/insights/us/en/topics/emerging-technologies/blockchain-technical-primer.html?id=us:2sm:3tw:4di_gl:5eng:6di&utm_content=bufferad8e2&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

BMW Completes First Pilot With DOVU Token Rewards to Track Mileage

DOVULab, a blockchain startup, has successfully completed its first pilot with BMW and Alphabet, BMW’s leasing and fleet vehicle division. DOVU’s applications platform was included in a ten-week program with BMW’s Innovation Lab in the UK, where start-ups had the opportunity to pilot their products at scale, with mentoring from senior members of the BMW Group UK management team, and funding provided by L Marks.

DOVU rewards people for data sharing in the transport and mobility sector, in a “circular economy.” The BMW program has been running for two years, with tech startups working directly with BMW to show proof of concept within a 10-week timeframe. DOVU was chosen to join the program, along with several other companies, including:

  • io, a location data platform
  • Ocasta, a mobile development studio for employee communications
  • Overfit Technologies, an employee retention and analytics platform
  • easyCar Club, a peer-to-peer vehicle rental service with 10,000 members, who earn money from their cars and vans

According to Mike Dennett, CEO at BMW Group Financial Services (GB) Ltd., “The auto industry will see more change in the next 10 years than it has seen in the last 20. We need to act now and go beyond the vehicle to ensure we deliver the best services for customers now and in the future. We’re excited about the possibilities new technologies offer; from geo-targeting data platforms to vehicle-sharing applications. The Lab is an opportunity for us to engage with start-ups and incorporate their proprietary technology into our own business, allowing us to cater for customer needs today, while ensuring services are future-proofed for the customer of tomorrow.”

Stakeholders within BMW chose which teams they wanted to sponsor. DOVU’s stakeholders included Nick Brownrigg, CEO of Alphabet; Simon Carr, Alphabet Chief Commercial Officer; and Leo Taylor, Alphabet Head of Product Management.

DOVU’s plan was to show the importance of maintaining residual value in vehicles that come back to market after a lease or fleet assignment. By reducing the amount of damage and miles over each vehicle’s mileage allowance, BMW would be able to maximize resale value.

During the program, sessions included introductions to sponsors, legal teams, branding and marketing teams, and the IT department. BMW’s CEO of financial services, Mike Dennett gave a presentation on the importance of Innovation Lab to the company overall. Then, the work began.

DOVU uses tokens to influence behavior, while collecting data that can be applied to BMW’s business overall. In order to capture relevant data in the short, 10-week timeframe, the company worked with stakeholders at BMW to identify pain points where user behavior would have the greatest impact on the car’s value.

One primary factor that could be measured was mileage, as it has a direct impact on the value of the vehicle. BMW’s current system to track mileage across a fleet is via a fuel card, where fuel stations track drivers as they refuel their vehicles at fuel stations. A potential problem here is the inaccurate recording of values, which costs the company overhead to reconcile numbers. In the trial, the DOVU wallet had a manual data collection method that triggered a reward to users each week when they used the app to take snapshots of their dashboards on a regular basis. Optical Character Recognition (OCR) software then determined the mileage, with smart contracts checking that conditions were met before issuing the digital rewards.

With this trial complete, other divisions are looking at DOVU’s technology to see how tokenization might be used to improve other business areas for BMW.

Bitcoin is no democracy and that is a feature, not a bug

Bitcoin not only invented a digital means of payment, but also a new mechanism for social governance that manifests itself in the protocol: consensus. What is the difference between consensus and democracy? What are the effects on government and society?

Over the past 200 years, the ideal of democracy has become the core of society – democracy as the apotheosis of society. Accordingly, decisions must be taken democratically in order to claim legitimacy. Abstractly speaking, the majority subjugates the minority in a democratic decision. Democracy is a form of government.

Bitcoin turns the system upside down

At crypto conferences we hear again and again “democratization of X” as the goal of the digital revolution 2.0, but let’s remember: this revolution 2.0 was abandoned by Bitcoin – the decentralized peer-to-peer electronic cash system. The fundamental feature of Bitcoin is its leadership.

At this point, the difference between government and governance becomes clear: the government is the authority that determines the course; in return, leading is the process by which something is decided.

We already know that there is no central authority in Bitcoin, no government to make decisions. This is not a bug – it’s a feature. The absence of a ruling authority leads to a unique leadership mechanism: consensus.

While in a democracy the majority decides over the minority, in a consensus everyone decides over himself. Participants have exclusive decision-making power over themselves and their property. This means that in Bitcoin it is not the majority that decides – but everyone, everyone decides about themselves. Anyone participating in the network implicitly agrees to the rules. Everyone agrees on these rules. All interaction is based on a voluntary basis.

Decisions in the consensus model

The example of block scaling demonstrates the consensus principle:

In 2016 and 2017, one question dominated the Bitcoin world: How should Bitcoin scale to a global currency? The answers were as diverse as they were contradictory. Two camps pulling in opposite directions – “Larger blocks!” “No, SegWit!”. A dead end dilemma? After all, there is no instance that can tell you what to do. The status quo is maintained. But that was not the end of the story.

After several years of debate, the Bitcoin protocol showed its true strength. Instead of imposing something on one or the other camp, there is a third option in Bitcoin Land. In the words of Dora the Explorer: “Por que no los dos?” (engl. “Why not just both?”). In fact, this was the solution to the conflict. The Bitcoin Unlimited team forked the Bitcoin network. Bitcoin Cash implements the proposed, larger blocks. Bitcoin, on the other hand, activated SegWit and implemented a different approach to solving the scaling question.

All users could and can decide for themselves. If you want larger blocks, you sell your Bitcoin for Bitcoin Cash; if you want SegWit, you sell your Bitcoin Cash for Bitcoin; indecisive people don’t have to do anything. Whether you want to use Bitcoin or Bitcoin Cash (or neither) is up to you. Essential: All decisions are voluntary.

Hard Forks instead of majority decision

In a democracy, the majority must agree to make a legitimate decision. In consensus, this condition is drastically tightened: everyone must agree on this. If there are differences of opinion, the paths fork. It’s called a hard fork. There are then two incompatible networks. However, there is still consensus within the systems.

This is where the power of consensus comes into its own. It tolerates a plurality of opinions and everyone can express them. Where in a democracy only one variant can win and is implemented (Trump or Clinton? Deutsche Mark or Euro?), the consensus model allows everyone their ideal world. Whether larger blocks or Lightning are the right way to scale or not, time will show us. We will see, as both approaches exist.

This article originally appeared at: https://captainaltcoin.com/bitcoin-is-no-democracy-and-that-is-a-feature-not-a-bug/.

Cryptocurrency Revolutionizes Niche Industries

One reason that enables cryptocurrencies to sustain its upward trend is the fact that it is not only disrupting giant industries but it is also used as a tool to serve niche markets where digital coins can thrive on their own.

According to Entrepreneur, niche marketing allows startups to create a new space where they can introduce a business solution successfully while also giving them the opportunity to be major players in a bigger industry. However, business players often tend to dismiss the rewards that are granted by serving a small market audience.

So while everyone is moving to make the most out of their money from markets where cryptocurrencies have already established a name, people are overlooking the gains of buying low at startup markets that have a big potential with the help of cryptocurrencies.

One niche market that is being revolutionized by cryptocurrencies is the cannabis industry. Because under federal law, the use and sale of cannabis are illegal, cash payments eked out from the business is refused by banks. This, amid fears that the money received will not be valid, especially when the cannabis company with which the bank has made a transaction with is found guilty of violating federal laws. Business Insider reported that this disrupts the ease in making business between cannabis firms and consumers.

This is one of the reasons why PotNetwork Holdings, Inc. (OTCMKTS:POTN), a leader in the manufacture and sale of cannabidiol through its subsidiary, Diamond CBD, Inc., decided to venture into the crypto market.

Although having recently established the Blockchain Crypto Technology Corporation, its crypto business arm, the Florida-based company has already purchased 115 powerful rig machines. This will set the stage for its creation of an alternative coin that will help its CBD consumers buy their CBD products without worrying about a restrictive payment method.

The move is a landmark business strategy for a leading CBD firm. Both business segments of PotNetwork are expected to benefit from this lucrative synergy as Diamond CBD will see a boost in its consumer base with the faster payment method the company will be offering. As for Blockchain Crypto Technology Corp., gaining recognition in the crypto market that will service CBD users will be a minor problem with the popularity Diamond CBD has gained as a reliable CBD manufacturer.

Another niche market the cryptocurrency is invading is the music industry. Hakim Draper, the co-founder of Boogie Shack Music Group, believes the cryptocurrency market has given artists the chance to have their own cryptocurrencies.

But why would a music artist want his own digital coin?

Draper said artists are constrained to coordinate with major labels that are monopolizing the industry. By establishing their own crypto coin, artists may now rely on others’ funding instead of being dependent on traditional producers.

“Artists can raise money, fund tours, and retain more control of their career,” Draper was quoted in Inc.
In addition, Draper thinks the modern music industry is allowing more engagement between artists and fans. And cryptocurrency is believed to further boost this relationship up to the next level as artists ask support for their new cryptocurrency.

“We see the opportunity for artists and fans to use cryptocurrency as rewards and to gain further access and interaction across the entire relationship,” he added.

Seeing crypto as a solution to this problem, Boogie Shack has teamed up with blockchain-based Tao Network. Together, they will roll out the to launch the coin, with the XTO symbol, on CCEX.

In fact, Boogie Shack and Tao Network already have a handful of initial artist cryptocurrency offerings in the pipeline but declined to share further information on their identities just yet.

Despite having a small consumer base, niche market players are known to survive the game because of the quality and innovation they bring to their respective industries. With the injection of cryptocurrency, these markets will not lose their appeal and the chances of complementing a bigger industry.

Crypto Is the ‘People’s Revolution,’ Says Investor Mike Novogratz – CoinDesk

“This has been the people’s revolution,” Michael Novogratz of Galaxy Digital told the crowd at the Fluidity Summit in Williamsburg, Brooklyn on Thursday. 

Speaking from notes written on the back of a paper plate, he added:

“We have never had a market mania led by retail before.”

But Novogratz came to talk about the move of institutional investors into cryptocurrency following last year’s dramatic boom in prices. Novogratz started his remarks by mentioning his company’s own big recent development, the launch of the Bloomberg Galaxy Crypto Index, which tracks the most liquid assets trading on blockchains.

“I’m hoping yesterday marks the beginning of the institutionalization of crypto as an asset class,” Novogratz said, because “big problems need big capital.” 

And Novogratz emphasized that he believes that crypto’s big impacts will happen at the street-level, where regular people do things like rent rooms, ride cars and pay each other to do work.

“The decentralized revolution is going to have its biggest impact in the retail sense,” he said, but to get there it will take the investment power of the big institutions.

Describing recent meetings with staff at Deutsche Bank, the New York Stock Exchange and Goldman Sachs, Novogratz said he believes it is happening – and this year.

“There are three superhighways that all of you need to follow,” he advised the crowd of roughly 700 people. 

First, computer science, where he said he tries his best to sit with his computer engineers and follow the technical underpinnings of the industry. He cited two immediate technical challenges, scaling and the proper balance between speed and security.

“We have a bet on EOS because I think people like speed and convenience. We also have a bet on ethereum,” because it has the most developers, he said. “My intuition is: we don’t need 100 blockchains.”

He also said his intuition tells him the problems of balancing security and network scaling will get solved.

Second, he pointed to token economics, saying: “It’s the coins that are exciting.”

Novogratz stated that investors haven’t thought deeply enough about the new coins.

“2018 is an important year because most of us as investors, myself included, didn’t think enough about how do these tokens work? And why do they have value?” he asked. 

Typically, it’s argued that if a protocol doesn’t give reasons for buyers and sellers to hold onto a token, its value will drop to zero. Novogratz doesn’t believe that’s quite right though.

He argued that in, for example, a decentralized ridesharing protocol, a lot of riders and drivers will both hold onto a small amount of token as a speculative investment.

“The token is a future on how many rides a token can get,” he said. As the protocol grows, it will take less of a token to buy a ride and the value of coins will grow. “Even though that’s speculating on the future, it feels a lot like equity.”

Lastly, he mentioned institutional investors. “The institutional herd is on the move,” he said, adding that he prays every night that established players will get into the custody game to make it happen.

“We need custody to hit the tipping point,” he said, adding that the pension program of state employees in Wisconsin (for example) isn’t going to be comfortable using a startup for custody.

“There are three superhighways and the trucks are moving on all three superhighways,” he told the crowd, concluding:

“I’m more bullish this year than I was last year.”

Michael Novogratz photo by Brady Dale for CoinDesk.

 

UHive ICO (HVE Token): Blockchain Social Network Crypto Coin?

UHive describes itself as the world’s first social network “with physical dimensions and blockchain technology.” Find out what that means today in our review.
What Is UHive?

UHive is a blockchain-based social network that combines human psychology with blockchain technology to deliver a new user experience unlike any other social network.

The UHive ecosystem revolves around UHIVE tokens.

Obviously, we already have hundreds of major social networks on the internet today. What makes UHive different? How does UHive plan to separate itself from the crowd? The unique selling feature of the UHive social network is the idea of a “physical dimension”. By adding a physical dimension to the social network, UHive aims to bring digital social interactions to the real world.

How UHive Blockchain Social Network Crypto Coin Works

UHive is a social network available through a mobile app or web browser. The social network combines a physical dimension with blockchain technology. It also uses AI and virtual reality.

What exactly is this UHive “physical dimension”? Well, the company’s platform allows users to create and display their profile or walls with a digital physical location address in a world of infinite space. Your social profile occupies a real space inside a virtual environment.

In other words, you have a “physical” location within the UHive social network. You can discover and explore the network to find new businesses and spaces. You can zoom in and out or left and right to explore adjacent spaces.

UHive has filed patents for two technologies, including their “physical social network” concept and their “Grey World” concept. Both are listed as patent pending.

With UHive, users can have multiple profiles. You can have a profile on the Civilized World and another on the Grey World. You can embrace freedom and imagination on the Grey World while enjoying a regulated environment on the Civilized World. UHive uses a hybrid blockchain technology to keep user data, identity, and activities secured and anonymous.

Let’s go back to talking about UHive’s physical space idea: over time, your physical space in the Civilized World and Grey World can become more unique. As users engage with the platform more frequently, their space will be more visible and attractive to other users.

Users can also choose a specific space location today and then capitalize on the increased value of that space over time. You might situate your profile next to a famous space with lots of traffic, for example, which means people visiting the space will see your profile, increasing the value of your space location.

UHive also mentions virtual reality technology. The social network will be built from the ground up to support virtual reality, although this feature will be optional for users. You can explore the physical spaces inside UHive from a virtual reality device. The social network will also allow you to view movies and photos using VR and perform other social interactions with VR.

UHive Features And Benefits

Why do we need a social network like UHive? What’s the point of creating a “physical” social network? UHive seeks to provide a number of unique benefits to today’s social media infrastructure, including all of the following:

  • A unique discovery experience compared to traditional social networks
  • Enhanced visibility for brands, businesses, and communities to all users by visual representations, with trending topics easy to identify
  • New marketing trends based on the utilization of high traffic from surrounding spaces and increasing numbers of organic visitors
  • Hybrid blockchain technology that secures all data on the platform, allowing for increased anonymity and data security
  • A new digital token (UHIVE) that can be used to support a thriving digital economy
  • Socially active users will receive free UHIVE tokens on a weekly basis
  • A new, unique, and entertaining experience designed to distinguish UHive from other social networks

To learn more about UHive or to participate in the ongoing ICO,  

This article originally appeared at: https://bitcoinexchangeguide.com/uhive-ico-hve-token/.

Everything You Need To Know About Staking Coins

“Cryptocurrency currencies take the concept of money, and they take it native into computers, where everything is settled with computers and doesn’t require external institutions or trusted third parties to validate things.” – Naval Ravikant

Blockchain based cryptocurrencies provide an alternative way for people to make money. Digital currencies remove the need for relying on the stock exchange or traditional brokers. Millions of people around the world are making money through crypto trading, mining operations or staking coins.

What is Proof of Staking Coins?

Proof of staking (PoS) is a relatively new consensus algorithm for some digital currencies. It creates new blocks that are added to the blockchain. These blocks are staked by a person who is already holding some coins and helps in validating a new transaction on the platform.

An individual is only able to mine or validate new transactions for coins equal to the number of coins they have staked. The more coins a person stakes, the higher their power to validate transactions.

How Does the Process Work?

In a regular crypto network like Bitcoin, transactions are randomly processed by the mining node that is the first to solve a complex algorithm at the end of a timeframe. Investors holding Bitcoins have no say in which network operator validates the transaction.

In Proof of Staking protocol, miners are chosen randomly from a pool by holders of the digital coin. A miner can be added to the pool by staking a certain amount of coins in a bound wallet.

The chosen node stakes the coins in the bound wallet and creates a new block that is proportional to the percentage of coins staked. For example, if the number of coins staked is 5% of the total coins on the network, the node can mine 5% of transactions for new blocks.

Benefits of Staking Coins

Staking coins offers a number of benefits to mining operators.

The consensus mechanism removes the need for purchasing high-end computer hardware. When a mining node stakes bound coins from an e-wallet, it is guaranteed a fixed percentage of transactions on the network irrespective of its processing power. Investors with enough holdings in the coin can validate transactions on the network.

The value of assets staked through PoS does not depreciate with time unlike ASIC and other mining hardware. The value of the stake can only be affected by fluctuations in the currency prices.

Proof of stake is environmentally friendly and more energy efficient than proof of work mining used in Bitcoin. The threat of 51% attacks is reduced in a staking coins system.

The major benefit of staking coins is that it removes the need for purchasing expensive hardware. The system offers a guaranteed return and predictable source of income for miners unlike proof of work system where coins are randomly rewarded to the most high-level computing systems.

The Risks of Staking Coins Staking coins in a bound wallet has one drawback. The coins are locked up for a period of time and cannot be sold.

This may not be a problem while the value of the currency is rising, it can lead to losses when the price is falling. The amount earned through staking might not be enough to cover the price depreciation during a bearish run.

Popular Cryptocurrencies for Staking Coins Coin staking gives currency holders some power on the network. It gives them the ability to earn a regular income for their investments. This is quite similar to how someone would receive interest for holding money in a bank account.

The ability to stake coins to get mining preference has been seen received favorably by crypto investors. Many new currencies have built this model into their platform. Some of the popular currencies for coin staking are listed here.

DASH

DASH stands for Digital Cash. It was one of the first currencies to introduce the coin staking mechanism. The currency was built upon the core of Bitcoin. It made further improvements by implementing PrivateSend and InstantSend features.

The currency allows its investors to stake coins through a masternode. The minimum requirement to run a masternode is 1000 DASH units. DASH is currently priced at $320 which makes the cost of running a masternode somewhere close to $320,000.

NEO

The purpose behind NEO is to create a smart economy using the blockchain technology. NEO’s proof of stake algorithm uses the dBFT algorithm. Participants on the platform can stake their coins by binding coins in a NEON wallet. Stakeholders can expect to earn new coins at 5.5% annually for all the coins that they stake.

NEO is quite popular and the number one currency at Bitfinex, a Chinese virtual currency exchange based at Hong Kong. The coin is expected to rival Ethereum which has held the number two position in cryptocurrency markets for quite some time.

OkCash

This currency was launched in 2014. It is designed to be suitable for micro-transactions. It has a pretty good ROI on staking. The coins can earn an annual return of 10% the value of the stake. It is currently trading at $0.121 in the markets.

Source: Krohn Media