Blockchain explained

From Reuters.com:
September 24, 2021.
“CHINA'S TOP REGULATORS BAN crypto trading and
mining, sending bitcoin tumbling.
TEN AGENCIES, INCLUDING THE CENTRAL BANK,
financial, securities and foreign exchange regulators,
vowed to work together to root out "illegal"
cryptocurrency activity.”
Apparently China DOES NOT UNDERSTAND 'the Sense
of history'.

'THIS FIRST PART' is a Rant 'AGAINST GUMROAD', which
acts as AN 'INTERMEDIARY'; between the customer and the
supplier.
And WHOSE QUASI DIVINE WILL 'HAS POWER OVER
BOTH' -the client and the provider- THROUGH CENSORSHIP.
IN THE AGE OF INTERNET, DIGITAL AND NOW THE
BLOCKCHAIN TECHNOLOGY THESE INTERMEDIARIES
HAVE BECOME UNNECESSARY.
IF YOU DO NOT WANT TO SEE THIS RANT AGAINST
GUMROAD, which dismantles the rhetoric of Those who still
plebiscite this old mode of technology.
Move forward, THE SECOND PART IS DEDICATED TO
EXPLAINING WHAT THE BLOCKCHAIN IS.

“What people are UPTIGHT”.
I just got censored on gumroad. Lol which is ironic, given 'the
Nature of this company's service'.

THIS UMPTEENTH CENSORSHIP OF AN ONLINE
PLATFORM, MAKES ME SAY THAT IT IS NOW FUTILE
TO DEAL WITH PARTNERS ON THE INTERNET.
AND THAT THE SOONER WE BUILD 'as many services' as
possible in direct relation with the customer via Blockchain
technology, THE MORE PEACEFUL WE WILL BE.

MY ADVICE TO ALL CONTENT CREATORS to get paid;
- DON'T TAKE AN INTERMEDIARY BETWEEN YOU
AND THE CUSTOMER:
THEN YOU WON'T BE AT THE MERCY OF A MORON
IN A COMPANY AND HIS SANCTIMONIOUS
MATERNALIST POLICY.

'PERSONALLY I'M DONE WITH ALL THESE
PLATFORMS', which act as intermediaries between the
creators and the customer.
There is no point in paying intermediaries a lot of money in
the age of blockchain technology.
Intermediaries who lecture you because what you post
doesn't fit the 'Social Etiquette of the day'.
I'm old enough to post what I want to post, I don't need a
Mummy TO TELL ME HOW TO BEHAVE IN CHURCH
ANYMORE.

From Authority: Become an Expert, Build a Following, and
Gain Financial Independence by Nathan Barry:
“Once your sales page is in place you need a way to
actually accept payment.
You can build it directly into your site (a bit complicated)
or LINK TO A THIRD PARTY PROVIDER (MUCH
EASIER). If you are new to the process I recommend
using a provider that can be integrated with just a link.
The most common are PayPal, Gumroad (my favorite),
SpaceBox, and E-junkie. More on each one later.
Sahil Lavingia, the founder of Gumroad, describes his
mission for Gumroad to make selling a digital product as
easy as sharing a link.”
As easy as censorship, he should have written.

When the intermediary (THIRD PARTY PROVIDER) has
all the power over you (and your creations), I don't call it
easy, or temporary easy before CENSORSHIP.

From How to Start Your First Online Business: The Quick and
Highly Actionable Plan to Start Your Online Business and Live
a Simpler Life by Neal Samudre:
“But the best and easiest platform I've used to sell is
Gumroad.
First off, Gumroad makes it really easy to submit your
product.”

From Hustle Away Debt: Eliminate Your Debt by Making More
Money by David Carlson and Stefanie O'Connell:
“GUMROAD.
There is a transaction fee of $0.25 for each sale as well as a
5% charge per sold product.”
Why have fees, when you can use blockchain technology
at no cost?

From Mimi's Book Launch Plan: How to launch your ebook
easy-peasy, with diary notes of 31-day count-down and to-do
overview by Mimi Emmanuel:
“My book was listed with gumroad.
The nice thing about Gumroad is that you can allow
customers to set their own price.”
What interests people in this gumroad service, is a personal
web page where their books “will be visible” for sale all the
time.
But, there are also platforms in blockchain technology
like webpage service, where you can show your product
with your blockchain 'addresses to get paid'.

It's simpler and it's Indelible, 'therefore Uncensorable'.
You are no longer at the Mercy of a Company's Management
-who decide "that your products no longer correspond to
the Social Trend"-.

From Retrato: A Guide to Portrait Photography, Gaining
Followers and Making Money by Bleeblu:
“Etsy. Fees: $0,20 to list each item for four months, 3,5% of
each sale.
Big Cartel. Fees: Free with 5 products, $10 for 25, $20 for
100.
Society6. The downside is the large amount of money they
take from each sale.
Squarespace. Fees: $8/month for 1 product, $18 for 20
products and $26 for unlimited products (billed yearly).
Gumroad. If you bought this ebook for $9, I’d make $8,30
and Gumroad keeps $0,70.”
Why pay intermediaries when you can use free services?

Free because the operating costs are supported by the
business model such as blockchain.
Not all blockchain services have the same support model,
but many include their operating costs by taking a 'small
portion' of the transaction. Technically "it's not free"
except that when you come to these fees, you realize how
Ridiculous they are.
IT'S THEREFORE A CHOICE OF REFERENCE Compared
to classic intermediaries, classic in 'the non-technological
sense'.
The blockchain being in principle only an interface even if it
can contain parameters similar to a classical intermediary
(like personnel to pay, social charges, et cetera).

All these intermediaries have huge fixed costs Compared to a
“Purely technological platform”.

From 10 Fundraising Ideas & Strategies: Fundraising strategies
to raise money by Alex Genadinik:
“Of these platforms, and the one I use personally, is
Gumroad.
Reasons why I chose Gumroad:
- It has a simple payment process.
- Handles VAT for me (a huge pain selling from an EU
country).
- I can build my own email newsletter and have control
over it.
- Great Analytics for customers and sales.”
“Handles VAT”; blockchain technology does not have this
problem.

Blockchain technology does not have this problem because
it is not affiliated with any country.
It is sure that in the future, states will legislate what you
earn on these blockchain platforms.
But you can always switch to another blockchain
platform, if it becomes regulated.
Anyway, 'it's a cat and mouse game'; STATES WILL TRY
TO TAX 'EVERYTHING YOU EARN'.
THEN IT'S UP TO YOU TO DECIDE 'if you Decide THAT A
PART OF WHAT YOU EARN SHOULD Be Given to the
community' or not.

“Gumroad has a simple payment process”; blockchain
technology is even more simple, and if you want to get
your funds back on non blockchain money, THEN IT IS
RELATIVELY EASY.

“I can build my own email newsletter”; I'm pretty sure
you can find decentralized services on there, and maybe
even blockchain.

“Great Analytics for customers and sales”; The same as
Above.

From The 30 Day Startup: How to Create a Successful Tech
Startup in 6 Weeks for Less than $50K by Sam Kamani and
Will Schmidt:
“Gumroad.
Sahil Lavingia launched Gumroad in 2012. Aiming to make
the ability to sell online as easy as sharing content on social
media, he built the tool without THE NEED FOR A
MERCHANT ACCOUNT.”
Technically, Gumroad is the merchant, that is the
intermediary between you (your products) and your
customers. So, this is false.
GUMROAD IS THE MERCHANT.
The Intermediary.

And I don't see why I would pay a merchant TO SELL A
PRODUCT, which I CAN SELL MYSELF.

From The Ultimate Guide to eCommerce Software: Everything
you need to start an online business by Matthew Guay,
Melanie Melanie Pinola, et al., 2016:
IT'S QUITE SIGNIFICANT -of these platforms- that play
the intermediaries.
Because in doing this 'little press review', I found in a list
of 6 intermediaries, 2 that were already dead, and yet the
book is from 2016, so -barely 5 years old-.

“Where to Sell:
Gumroad, Chec, Sellify, SendOwl, E-junkie.”
Plasso plasso.co & Chec trychec.com are dead.
This shows that these platforms -ARE NOT RELIABLE-.

“What It’ll Cost:
Chec comes in cheapest, at 2% per transaction plus
payment processing fees.
Gumroad’s charges 5% per transaction plus 25¢ per sale.
Plasso charges 4% per transaction plus Stripe’s fees.
Sellify charges 5% plus PayPal fees.
E-junkie and SendOwl use monthly plans, starting at $5
and $9/month, respectively.”
WHY PAY, WHEN YOU 'CAN USE BLOCKCHAIN
SERVICES'?

From YouTube Black Book: How To Create a Channel,
Build an Audience and Make Money on YouTube by
Christopher Sharpe:
“Gumroad. I love it.
You can also sell video products as long as the individual
files aren't bigger than 4GB.”
Again this is a limitation of the service provider.
If you find a decentralized platform, maybe blockchain,
you won't have this disadvantage of being limited.
Moreover, this limitation will probably change over time,
DEPENDING ON THE WISHES OF THE COMPANY'S
MANAGEMENT.

Apparently, NOT ALL OF THESE CREATORS have been
censored yet, because their contents did not please the
management.
IT WILL COME FOR SOME OF THEM, I am 'not an
exception'.
NO, THERE IS NO INTEREST TO HAVE AN
INTERMEDIARY BETWEEN YOU AND YOUR CLIENT,
at the time of a revolutionary technology "LIKE THE
BLOCKCHAIN".
Technology that makes 'many teeth in the GANG OF
PARASITES' Cringe.

I'M GOING TO DO A "PRESS REVIEW" on what
BLOCKCHAIN IS, BECAUSE NOT ENOUGH people
understand its BENEFITS:

From Blockchain – ICBC 2018: First International Conference,
Held as Part of the Services Conference Federation, SCF 2018,
Seattle, WA, USA by Shiping Chen, Harry Wang, et al.:
“Blockchain was first introduced by Satoshi Nakamoto in
2008 as the underlying data structure of Bitcoin. As its
name suggested, a blockchain is a chain of blocks, in which
each block contains a number of transactions which are
hashed in a Merkle Tree.
By storing the hash value of the previous block, each block
refers to its previous block, forming A CHAIN
STRUCTURE.
Together with peer-to-peer communication, consensus
between miners such as Proof of Work (PoW), asymmetric
encryption and digital signature, a blockchain system can

provide a TEMPER-PROOF AND IMMUTABLE value-
transfer network which facilitates the booming of
cryptocurrencies. This kind of blockchains which mainly
used in cryptocurrencies can be defined as blockchain 1.0.
Although Bitcoin supports scripts to define simple rules,
the scripts are Non-Turing-Complete. In order to make
blockchain suitable for more scenarios other than
cryptocurrency, Ethereum introduced smart contract
which can be constructed with Turing-Complete
programming languages (for example solidity).
SMART CONTRACTS ARE EXECUTABLE CODE
STORED ON BLOCKCHAIN, defining what information
to store and what transactions to EXECUTE.
If an application is built only by Ethereum-like blockchain
without cyber-physical interaction or other external

facilities, it is defined as blockchain 2.0, which means
blockchain based economic, market, and financial related
applications.
Blockchain 3.0 means blockchain based applications
beyond the scenarios of blockchain 2.0. For example,
blockchain based naming systems, health caring systems,
IoT systems and so on. As for blockchain based IoT
systems, besides the blockchain related factors such as
consensus method, smart contract support or not and state
machine management, IoT related factors such as the
constraint of computing power, memory of devices and
network bandwidth, and security of devices must also be
considered. However, the problem that the limited
resources of IoT devices CANNOT WELL SUPPORT THE

MINING PROCESS OF BLOCKCHAIN NODES OCCURS
FREQUENTLY.”
It's Therefore more a Regression in the sense that the
HARDWARE LIMITS.
We should have called this 'application type' Blockchain 2.5,
rather than an Evolution (3.0).

A little Bit of History.
From BITCOIN: Bitcoin Secrets Revealed: The Complete
Bitcoin Guide - Bitcoin Buying, Bitcoin Selling, Bitcoin Mining,
Bitcoin Investing And Bitcoin Exchange by Richard Carroll:
“The concept behind establishing a permanent,
decentralized ledger, like blockchain, was first discussed in
1991. However, the first actual blockchain implementation
was designed in 2008, by Satoshi Nakamoto.
THE DIGITIZED LEDGER that Satoshi Nakamoto
created in 2008 was the basis for the spreadsheets that
manage cryptocurrencies and other online trading
transactions.
The technology that allows bitcoin to serve as a digital
currency, as a store of value, and as a medium of exchange

is blockchain because bitcoin transactions are recorded in a
blockchain ledge. This means blockchains are not limited
to running bitcoin; rather blockchain application can span
the entire gamut of trade, finance, healthcare, legal
operations, records management, gaming, online
exchanges, probability, and more.
Blockchains are digital ledgers and can be formally
defined as a continuously-growing list of records that are
linked tougher and secured using advanced cryptography.
Each record in the list of a blockchain’s chain IS CALLED
A BLOCK THAT CONTAINS SPECIFIC TYPES AND
PIECES OF INFORMATION.
Each block WILL USUALLY INCLUDE SOME SORT
OF POINTER AS A LINK TO THE PREVIOUS

BLOCK, TRANSACTION DATA, AND A TIMESTAMP,
WHICH CAN TAKE A VARIETY OF FORMS.
ANOTHER WAY TO LOOK AT IS THAT A
BLOCKCHAIN IS MUCH LIKE A DATABASE WHERE
EACH ENTRY IS LINKED TO THE PREVIOUS AND
NEXT ENTRY.
THIS MEANS THAT THE INFORMATION CONTAINED
WITHIN THE BLOCKCHAIN CAN'T BE CHANGED.”
BLOCKCHAINS ARE [THEREFORE] RESISTANT TO
BEING MODIFIED BECAUSE OF THEIR INHERENT
DESIGN.

ONCE INFORMATION IS RECORDED IN A
BLOCKCHAIN, THE DATA CANNOT BE ALTERED
after-the-fact WITHOUT ALTERING THE SUBSEQUENT
BLOCKS BY HAVING THE MAJORITY OF NODES ON
THE NETWORK AGREEING TO THE CHANGE.”
You understand 'the REVOLUTIONARY CHARACTER of
the blockchain', which I consider as important as the
invention of the Press.
Because it frees the individual from the group.

“THIS INABILITY TO CHANGE THE DATA WITHIN
A BLOCKCHAIN MAKE ILLEGAL OR UNFAIR ACTIONS
ALMOST IMPOSSIBLE TO CARRY OUT.
IF A HACKER WISHED TO ALTER INFORMATION
WITHIN A BLOCKCHAIN, THEY WOULD HAVE TO
GAIN CONTROL OF EVERY NODE.
SINCE BLOCKCHAINS ARE DESIGNED TO BE
VERIFIABLE AND PERMANENT, THEY ARE
ESPECIALLY SUITABLE FOR RECORDING EVENTS,
maintaining medical records, drawing up agreements,
fundraising, and keeping track of other documents.

DURABILITY AND RELIABILITY.
Blockchain technology has been proven not to have a
single point of failure and is capable of withstanding
malicious exterior attacks more efficiently. This is
compared to closed systems that contain possible
weaknesses and point of failure that are scattered
throughout the entire system from within.
Blockchain technology ACTS AS A MIDDLEMAN for
implementing all business deals, protocols, and
programmed exchanges of information in smart
contracts.”

THIS IS THE INTERMEDIARY THAT HAS BEEN
REPLACED BY A TECHNOLOGY, whose principle IS
THE FREEDOM OF THE INDIVIDUAL.
REVOLUTIONARY.
Thus the censorship is Beaten.
That's why I used to say "I'm done" with these 'human
intermediaries', who can't Stand criticism, or who have no
conscience of their own.
I'll let them die with their mouths wide open, because in the
long run with the next decentralized internet 'and/with' the
blockchain; they are dead.
“Blockchain applications have begun to become
increasingly popular in the medical field in recent years.
Researchers are now investigating these applications

dealing with digital identity, insurance records, and
medical records. There are many medical offices today that
use some kind of digital machine to verify that the
information they have on file is, in fact, your information.
The financial industry is one of the sectors that have
greatly benefitted from the use of blockchain technology.
Another way that blockchain technology can add value to
a business is by banking the unbanked. It might be hard to
believe, but there are a lot of people in the world who don't
have bank accounts. Blockchain technology will provide
the opportunity for these people to create a bank account.”
I know people who are creditworthy but can't open bank
accounts.

Which is ridiculous in this age of the internet and
computer technology.

“Next, BLOCKCHAIN TECHNOLOGY can add value to
businesses through legal contracts.
For example, when you are buying a house, all the
documents that you sign, must also be signed by the seller.
This means that all the documents must be in one place for
both parties to have access [...] making the legal contracts
immediately usable WITHOUT ANYONE BEING ABLE
TO INTERFERE IN THE PROCESS.
The promise of BLOCKCHAIN TECHNOLOGY saw all
of the world's contracts and agreements digitized into code
and stored in public, transparent databases that are safe
from being deleted, tampered with, or revised.

As the technology continues to expand, we'll see
middlemen, like lawyers, stock exchange brokers, and
banks, saving billions, if not trillions of dollars every year.”
And we will also 'GET RID OF A LOT “OF SOCIAL
PARASITES”'.

“Blockchain technology is ideally suited to
revolutionizing the way many industries do business.
Here are just some of the ways that blockchain technology
will accomplish this.”
ELIMINATING THIRD PARTIES.
BLOCKCHAIN TECHNOLOGY will eradicate third
parties and increase the number of exchanges THAT
AREN'T SUBJECT TO TRUST ISSUES.

Blockchain will allow two or more parties to conduct a
transaction, of any type, without having to resort to
official oversight or intermediation with an external
party.”
IT'S THE SAME THING; that is to say 'to get rid of an
Intermediary'; THE STATE (Official) is only an Intermediary.

“BLOCKCHAIN TECHNOLOGY has made it easier for
businesses to do business together because it has
dramatically simplified the production process, and
transfer process, as well as the verification and payment
methods, used.

Blockchain Technology and Quality Assurance.
In business, mistakes happen, no matter how careful
you are and how closely you follow processes and
procedures, and it can be challenging to pin down HOW
THE MISTAKE OCCURRED. WITH BLOCKCHAIN
TECHNOLOGY, MISTAKES AND ERRORS CAN BE
TRACED BACK TO THE POINT OF ORIGIN.
NOT ONLY DOES THIS MAKE IT EASIER TO
INVESTIGATE MISTAKES, BUT IT ALSO SAVES
COMPANIES TIME AND MONEY.”

SECURITY:
“One of the most significant issues people are faced with
today is the thought that all their information could be
compromised by hackers because most of our personal
information is digitized. It also seems that it has become
too easy for complete strangers to ACCESS, COPY
AND TAMPER WITH OUR DATA.
Blockchain technology was created to help ensure
that doesn't happen or in the very least make it more
challenging to try.
For someone to hack the blockchain system, they would
need to go back and change every single block.

Proof of Work:
To be accepted into the blockchain, each block must
have a valid proof of work. A proof of work is a type of
data that is both difficult to produce as well as time-
consuming. Creating proof of work is essentially a random
process with a low probability of success. This means that
a bitcoin mining machine that is trying to complete the
process requires a significant degree of trial and error to be
successful. Bitcoin uses what is known as the hashcash
proof of work.
The hashcash proof of work is a type of cryptographic
algorithm that makes use of a hash function as a core
building block of the mining process. The most common
hashcash function that is used today is the haschash-
Sha256. This particular proof of work function was created

by Dr. Adam Back in the 1990s. It was initially used as a
way to prevent email spam abuse because successfully
generating the hashcash for a single email was simple.
However, creating one for a vast number of emails at the
same time proved to be much more difficult.
You can tweak hashcash proofs of work for the difficulty
to ensure that new blocks aren't being generated faster
than the network can handle. This means that a new block
can't be generated more than once every ten minutes at
this time.
As the probability of each successive generation is low, this
makes it challenging to determine which bitcoin machine is
going to generate the next block.

For a new block to be considered valid, its hash value must
end up being less than that of the current target. This
means that each block will have to naturally indicate that
work has been completed to generate it.
Each block also contains the hash of the preceding block,
which is how the chain understands where each block falls
within the overall blockchain. To change a block, the work
must be redone on all the previous blocks, and new and
connected hashes must be generated for all of them. The
blockchain is then essentially protected from
TAMPERING, BECAUSE OF THE ENORMOUS
COMPUTATIONAL POWER THAT IS NEEDED.

Proof of Stake:
Most of the significant cryptocurrencies today work off of
some variation of the proof of work model, either through
the SHA256 hash or through another, similar hash.
However, Ethereum [...] has been working on an
alternative that could significantly change the way
BLOCKCHAIN TRANSACTIONS ARE VERIFIED.
In early 2017, Ethereum released the implementation guide
for a hybrid proof of work/proof of stake system.
They are rolling out this new system in phases before they
make it the platform’s primary verification system. The
plan currently states that the blockchain platform will
alternate between the two systems. With the new system,

about one out of every 100 blocks will use the new system
while the rest will continue to use the old system.
There hope is that the new system will improve the rate at
which they can produce new blocks.
This will be the first time a proof of stake system will be
used to secure a blockchain, which will be a significant step
forward.
It's important to understand just how the proof of stake
system differs from the proof of work model. With proof of
stake verification, rather than having the miner solve the
equation to verify the block, a validator, who is confirmed
reliable by the stake they have in the system, will commit

to its accuracy. THEY KNOW THAT IF THEY LIE,
THEY WILL LOSE THEIR OWN ETHER AS WELL.
During the first stage of deployment, all of the blocks that
are verified through the new system will also be checked
through the old system to help double verify that the
blocks contain the information that they should, while also
testing the accuracy of the new system. Validators will
then look at the various chains that are available and
make a decision based on how much ether is currently in
the chain. If they make a poor choice, they will lose their
money.

This process will help form a consensus THAT LEADS TO
A SINGLE MORE MASSIVE CHAIN FROM THE
MANY SMALLER ONES.
Benefits of the Proof of Stake Model.
While the process of implementing the proof of stake
model isn't smooth sailing, it doesn't mean that the proof
of stake system is going to lose out. It contains many clear
benefits over the more traditional process. This first clear
benefit that this new model will have is that it will drop
the more than one million dollars ETHEREUM MINERS
SPEND ON ELECTRICITY EACH DAY TO AROUND
$100,000 OR JUST TEN PERCENT.”

This ecological argument is not a security argument for
blockchain.

“The Integrity of Data Processing and Transfers.
Due to the unchangeable nature of the blocks in a
blockchain, every user on the network can trust that every
transaction they make will take place on the network and
that they will always be executed precisely as the system
was designed.
All transactions made to and on a blockchain are, by
design, created on a public ledger THAT CAN BE
LOOKED AT BY EVERYONE.

Faster Transactions.
Transactions between banks, like ACH, (automated
clearinghouse transactions) CAN TAKE DAYS TO
CLEAR.
This is especially true for transactions that are made
outside OF REGULAR WORKING HOURS.
Just think about when you send a wire or make a purchase
at the end of the business day on Friday.”
This makes no sense in the Age of the Internet.

“Without blockchains, you are unable to SEE ANY
TIMELY UPDATES TO THE STATUS OF YOUR
FUNDS.
Blockchain technology reduces the transaction times
to minutes, and sometimes even seconds, and they are
processed AROUND THE CLOCK.

Lower Transaction Costs.
With blockchains, NO OUTSIDE PARTIES are
overlooking the transactions. Because of this
blockchains can potentially reduce the transaction fees
significantly. With reduced transaction fees, it could
possibly lead to billions of dollars being saved annually.”
From Blockchain Technology and Applications by Pethuru
Raj, Kavita Saini, et al.;
“Bioinformatics, governance, banking, trading, society,
politics, and even the very structure of the Internet itself
are suited for disruption. Generally, blockchain technology
will bring DISINTERMEDIATION AMONG
EVERYTHING.”

People 'don't realize' how Revolutionary blockchain is.
“Emerging blockchain technology has had a vibrant
influence, disrupting the way IT has been working,
because the blockchain network DOES NOT POSSESS
ANY CENTRAL CONTROL.
Usually the credit or debit card service providers demand a
processing fee for their services. Using the blockchain
technology, railway systems can eliminate the processing
fee AND EVEN ENHANCE THE EFFICIENCY OF
THE ENTIRE PROCESS.
ONE CAN UNDERSTAND THAT BLOCKCHAIN CAN
GIVE BETTER COST SAVINGS BY AVOIDING THE
MIDDLE MAN.

While CENTRALIZED SERVERS are vulnerable to
the security risks which demands more security, the
risks are spread out in the network since blockchain works
based on DISTRIBUTED COMPUTING.
Blockchain is considered ONE OF THE TECHNOLOGIES
with the most potential.”
It is.
“Bitcoin, proposed by Nakamoto, attracted researchers and
industrialist attention towards blockchain as it has the
capacity to eradicate the limitations of the traditional
payment method which depends on a THIRD PARTY.

SATOSHI INTRODUCED THE LEDGER DESIGN that is
called block, and contains a verified transaction.
The blockchain concept relies on cryptography that
links the blocks and each block holds the cryptographic
hash of a previous block and timestamp along with
data to be transferred.

The OPENNESS in the distributed setup is achieved with
the help of a peer-to-peer network.
The MAIN IDEA is that the need for central
TRUSTED THIRD PARTY IS OBSOLETE.
Each node, another name FOR BLOCK, POSSESSES A
COMPLETE REPLICA OF THE BLOCKCHAIN.
Adding a new transaction, that is, adding a block,
ENSURES THAT BLOCK IS APPENDED TO ALL
BLOCKS SUCH THAT TRANSPARENCY IS
MAINTAINED.
TAMPERING WITH DATA IS NOT POSSIBLE.

Cryptographic arrangements help in increasing the
security of the transaction IN ANY SORT OF
APPLICATION.
The type of restriction blockchain is broadly classified into
public, private and consortium.
The blockchain provides RELIABLE, IMMUTABLE,
IRREVOCABLE, Transparent data available at all
times, with reduced costs because a third party is not
required.

Initially starting with the buzz word
CRYPTOCURRENCY, the blockchain has found
applications in various domains in both the public
and private sectors across the globe.
A meeting conducted by the Organization for Economic
Cooperation and Development (OECD) discussed the uses
and limitations of blockchain in the public sector in
October 2018. It mentioned clearly that the blockchain is
PROGRESSING EXPONENTIALLY.

The blockchain is utilized actively IN PUBLIC
SECTORS like transport management, taxation, voting,
land registration, health care, identity management,
digital payment, and the list goes on.
To promote the export–import of a country, identifying
legitimate payment methods is a difficult task and involves
dealing with a lot of complaints.
A blockchain-based digital identity that incorporates
permissive blockchain as one of the regulatory nodes that
are incorporated in all transactions will be a viable solution
for the government sector.”
This means THAT THE 'COSTS AND DELAYS WILL BE
REDUCED'.

“Health care is a primary concern of all developing
countries since there are many registered alternate
medicine practitioners and methodologies, and with
millions of illiterate people, it is cumbersome to maintain
and retrieve the health records of millions for future use
for health care schemes.
Blockchain can provide a sustainable solution for the
maintenance and retrieval of health records.
Even many of the regulatory mechanisms and
departments can be incorporated with a blockchain which
provides a genuine AUTHENTIC PLATFORM without
any intermediate intervention to common people.”

This means that there will be less bureaucracy and that the
human bureaucratic apparatus will melt like snow in the
sun, at least 'for these applications'.

“Blockchain is very much essential in the field of taxation
so that many changes can easily happen and the efficiency
of the taxation system will increase and thereby every
individual tax account WILL BE SAFEGUARDED.
Blockchain taxation can be revolutionary by making the
following promises:
- Nobody can modify or disturb the COMMITTED
BLOCKS of the respective blockchain system.”

From Blockchain for Business 2019: A user-friendly
introduction to blockchain technology and its business
applications by Peter Lipovyanov:
“The financial sector will be among the first to be
disrupted by blockchain technology.
The previous major technological innovations in the
financial sector, the ATM and the credit card, were
introduced way back in the 1950s and 60s.
Not only that, but according to the World Bank, their
most recent study found 2 billion people who are
unbanked.”
Really? IT'S EVEN WORSE THAN I THOUGHT.

And the burden of not being able to "have a monetary
power" daily.

“It is difficult enough to increase productivity and trade
within their own country, let alone transacting with the
rest of the world. Many people consider the fees for
sending money overseas FOR THESE POPULATIONS
UNFAIR.
Money transfer services, such as Western Union and
MoneyGram, were charging 10% ON AVERAGE IN 2008,
AND 7,5% IN 2016.”
FUCK. THIS IS THEFT.
“BLOCKCHAIN TECHNOLOGY CAN DISRUPT THE
STATUS QUO AND BRING THIS TO A HALT.”

Traceability.
“IMPACTS IN OUR DAILY LIVES:
A startup called WaBi is working on resolving these kinds
of problems. By combining blockchain and radio-
frequency identification (RFID) technologies, they can
track and verify the authenticity of all ingredients
and components used in CONSUMER GOODS.”
Finally a real traceability of products -and their
components-.

“A little-known fact is that the genesis block of the
Bitcoin blockchain, where its first transaction was
recorded, contains a hidden message by its creator, Satoshi
Nakamoto.
The text quotes a headline from the British newspaper The
Times, which shows a proof of the date when the Bitcoin
blockchain was launched, and it states the following—The
Times, 03/Jan/2009, Chancellor ON BRINK OF SECOND
BAILOUT FOR BANKS.”
I always wonder WHY WE SHOULD BAILOUT THE BANKS. I
FORGOT, WE DON'T NEED TO. With Blockchain
technology, We don't need Them anymore.

“WHY BLOCKCHAIN IS BETTER.
The idea of hundreds or thousands of computers
storing the same file does sound a bit strange at first,
doesn't it? It wouldn't be a surprise if your first thought
WAS REDUNDANCY. But such redundancy PROVIDES
SECURITY and ensures there is NO CENTRAL POINT
OF FAILURE in the entire system. It protects from
attempts to manipulate the system by bad actors.
This in turn provides the opportunity to eliminate
any centralization or, in other words, to cut out the
MIDDLEMEN.

Such decentralized blockchains work through a
consensus mechanism or algorithm. There are
different types of consensus algorithms.
After new transactions are verified, they are ordered
and grouped into blocks, which are then linked to
previous blocks. Each new block is built on top of the
last block in chronological order.
Each of these blocks is a type of data structure
containing information and, more precisely,
transaction records.
Generally, distributed databases can contain any kind of
data, not just financial or economic data, but blockchain's

security and design make it especially suitable to use for
value exchanges.
Hence, the expression that blockchain is the internet
of value or the internet of money.
New blocks are created at regular intervals of time
and are timestamped. Each new BLOCK IS LINKED
TO THE CHAIN OF PREVIOUS BLOCKS, HENCE
THE TERM BLOCKCHAIN.
Actually, the BITCOIN BLOCKCHAIN is the largest
civilian deployment of public key encryption technology in
the world.

As we all know by now, the BITCOIN ECOSYSTEM
consists of users, miners, software developers, and
applications, such as exchanges, wallets, and
blockchain explorers.
Other stakeholders are expected to get increasingly
involved as well. It is highly likely that regulators
and government agencies will pay more attention to
the ecosystem IN FUTURE.
Besides wallets, another commonly used software
application is a blockchain explorer.
A blockchain explorer is a tool used as a search engine
for the blockchain. It allows us to track transactions,
blocks, and address balances.

There are several SITES that act as Blockchain Explorers.

ETHEREUM.
The key innovation, which differentiates Ethereum from
Bitcoin and many other altcoins, is its Turing-complete
programming language.
Turing-complete means that Ethereum's
programming language can be used to program and
run pretty much any function or task.
This enables a broader range of decentralized
applications to be created and deployed.
It packs a complete set of tools for developers to
innovate further and build applications and
businesses on the blockchain.

The Ethereum blockchain serves as a backbone
infrastructure for an entire economic and social
ecosystem.
That's why the majority of decentralized blockchain
applications (or DAPPs for short), at the moment, use
the Ethereum platform.
As we will see later, the Downside of such larger code base
is a larger attack surface and risk of software bugs, which
WILL OCCUR INEVITABLY.

ETHEREUM INTRODUCED the Virtual Machine
concept to the blockchain world.
The EVM enables standardized smart contracts and
decentralized applications to be created and run ON
THE BLOCKCHAIN.
This is done with the help of a Turing-complete
programming language, such as Solidity, which was
purposely designed by the Ethereum development
team.
Blockchain-based decentralized applications could
become the next big thing in computer technology.

Of course, projects always have the option to build their
own blockchains. Sia and Filecoin are two other
distributed data-storage applications that are building
their own blockchains rather than using Ethereum or
Bitcoin. THE IMPORTANT POINT TO MAKE HERE IS
THAT various blockchain platforms for decentralized
applications exist.

Voting.
With regards to voting and decentralized governance
applications, an interesting example is Horizon State.
They build voting systems using the Ethereum
blockchain. Voting is done with their native decision
tokens, which can be used for all sorts of political
elections, opinion polls, and shareholder votes.
The benefits of SECURITY AND IMMUTABILITY
that blockchain brings to the voting process ARE ALL
IMPORTANT.

DAO.
Decentralized autonomous organizations (DAOs) are
envisaged as AUTONOMOUS ENTITIES that operate on
the blockchain in a COMPLETELY AUTOMATED,
transparent, and publicly-managed way.
These entities can also be referred to as DACs.
A DAO IS CURRENTLY MORE OF A PHILOSOPHICAL
CONCEPT THAN A STRICTLY-DEFINED TYPE OF
BUSINESS OR SOCIAL ENTITY.
It's a vision for the next evolutionary step in
organizational theory and design, toward more
decentralization and autonomy.

DAOs can be described as decentralized applications
whose governance and operations run ON THE
BLOCKCHAIN.”

Public, Private blockchains.
“First, we have public blockchains, which are open
source projects, with free access for anyone to join the
network and use it, support it, contribute to it, or build
businesses on it.
Given the transparency of public blockchains, many
businesses may not feel comfortable to use them for
conducting their operations.
There is a lot of sensitive business information such as
transactions with suppliers, quantities, and other private
supply-chain details, as well as employee pay, which may
not be appropriate to be stored on a transparent, public
blockchain.

Such information usually is kept as a trade secret, as it
can be a source of important competitive advantage, after
all.
Then, we have private blockchains, which are not
open source, and have restricted access to only users
and entities who have been approved by the organization
that owns AND MANAGES THE NETWORK.
Public blockchains, open to everyone, NEED A
COMPLEX CONSENSUS mechanism with a native
cryptoasset, such as Proof of work, to enforce the security
of the network – in other words, to ensure that all
participants are incentivized to play by the rules.

Private blockchains, where all participants are pre-
approved, don't need the same type of consensus
mechanism, nor cryptocurrency. Instead, other factors,
such as trusted business relationships, build trust in the
system, WHICH IS A MORE TRADITIONAL
APPROACH.”
MORE TRADITIONAL APPROACH, MORE CLASSICAL,
CLOSER To What Existed before the Blockchain technology.

THE REVOLUTION -THAT IS BLOCKCHAIN-.
“Public blockchains have introduced a real
breakthrough solution to an existential global
problem – how to transfer value among unknown
parties, WITHOUT A NEED FOR THE PARTIES TO
TRUST EACH OTHER, and without THE PRESENCE
OF A CENTRAL AUTHORITY.
It can be argued that the pioneering public blockchains
introduced brilliant and disruptive technological solutions,
which have their own challenges TO ACHIEVE MASS
ADOPTION, IN TERMS OF SCALABILITY,
INTEROPERABILITY, PRIVACY, AND
GOVERNANCE.

PRIVATE BLOCKCHAIN PROJECTS INTRODUCE
THEIR OWN SOLUTIONS to the issues of scalability,
interoperability, privacy, and governance, which their
public peers have, but this is at the cost of less
decentralization. They bring some of the benefits of public
blockchains to the traditional setting of corporate walled
gardens and restricted-access networks.
But this creates single points of failure.
What if a system administrator that's in charge of
granting access to the corporate network gets
HACKED OR OTHERWISE CORRUPTED?”

And then we return to the old classical system that has
not worked 'FOR THOUSANDS OF YEARS'.
That's why I often say that only technology can save us as
a civilization. IN THE SENSE OF INERTIA AND
FEARFULNESS OF THE HUMAN SPECIES, which has an
INNATE DIFFICULTY 'TO TRUST'.
Trust with blockchain is provided by the blockchain
technology model.

From China's Fintech Explosion: Disruption, Innovation, and
Survival by Sara Hsu and Jianjun Li:
“Blockchain.
Blockchain is a technology with the potential to
seriously disrupt the fintech industry.
Although still in its early stages, the technology can
greatly reduce the need for intermediaries, changing the
way in which demand for and use of financial firms ARE
SHAPED.
IN FACT, BLOCKCHAIN TECHNOLOGY CAN EVEN
REMOVE THE NEED FOR BANKS AND FINTECH
COMPANIES.

THE BLOCKCHAIN IS A DISTRIBUTED LEDGER
(distributed across a network) made up of blocks that
can be verified by anyone, whose transaction records
ARE IRREVERSIBLE.”
THERE ARE BANKERS who have to grit their teeth right
now.
“The use of cryptography renders the exchanges secure.
Trade and loan transactions as well as contracts can be
included in the blockchain, eliminating the need for
TRUSTED THIRD PARTIES.
The transparency and INDELIBILITY OF THE
BLOCKCHAIN CAN REMOVE THE THREAT OF
FRAUD OR MONEY LAUNDERING.”

Remittance.
“With blockchain-powered remittance service, it now can
be done securely on mobile phones in a few seconds.”
Yes, there are bankers who have to 'GRIT THEIR TEETH'
right now.

From Handbook of Digital Currency: Bitcoin, Innovation,
Financial Instruments, and Big Data by David Lee Kuo Chuen
and David Lee, 2015:
“Social currencies.
Reddcoin was especially designed to encourage online
tipping culture, allowing USERS TO TIP ONE
ANOTHER WITH MICROPAYMENTS to demonstrate
appreciation for content produced, be it in the form of a
tweet, a blog post, or a reddit comment.
THIS TIPPING CULTURE was predominantly
established with the introduction of Dogecoin, another
altcoin that was developed to TARGET A USER BASE

that extended beyond the traditional specialized crypto-
currency community.
There have been other experiments with cryptocurrencies
within the social sphere, SUCH AS TALKCOIN, which
uses the Bitcoin protocol to create a DECENTRALIZED
CHAT PROGRAM that does not store messages on
any server, allowing secure and anonymous
communications.”
COOL. FINALLY!
“Florincoin introduced its blockchain as a publishing and
freedom-of-speech platform, allowing the possibility of

UNCENSORABLE AND UNCHANGEABLE MESSAGES
to be placed into the blockchain.”

From Hands-On Cybersecurity with Blockchain: Implement
DDoS protection, PKI-based identity, 2FA, and DNS security
using Blockchain by Rajneesh Gupta, 2018:
“Introducing Blockchain and Ethereum.
Once in several years, we see the birth of revolutionary
technologies with the capability to disrupt a wide range of
business models.
Blockchain is a concept that originated TO AVOID
THIRD-PARTY INVOLVEMENT in any financial
transaction in a whitepaper named Bitcoin: A Peer-to-Peer
Electronic Cash System, by Satoshi Nakamoto.

Web app versus dApp.
A web app is simply a web-based application, which is
widely used in client-server models to serve users.
However, DECENTRALIZED application (dApp) is an
application that runs on a peer-to-peer network of
computers.”

Ethereum & Bitcoin.
“Ethereum is one of the oldest blockchain flavors that
has provided platforms with a way to customize a
system. Bitcoin aims to disrupt the current payment
system and online banking with its own consensus
mechanism whereas Ethereum is in the midst of
decentralizing the existing computer system since it
works heavily on the client-server model.”

-INTERNET-.
From How to Fix the Future: Staying Human in the Digital
Age by Andrew KEEN:
““The web’s creator looks to reinvent it,” as the New
York Times described this June 2016 event, which brought
together privacy advocates and pioneers of such peer-to-
peer technologies as blockchain to discuss a “NEW
PHASE OF THE INTERNET.”
“I asked Vint Cerf how difficult it was to build the original
internet,” Brewster Kahle tells me.
“And Cerf replied, ‘It took one year with a room of 5 or 6
guys.’”

The first time around, Kahle confesses [...] The mistake, he
says, is that the web LOST THE ABILITY TO SERVE
ITS USERS.
“... and so that all the online music and videos aren’t
owned by iTunes.”
GENERATIONS BORN AFTER 2000 have not 'known'
the HACKER SPIRIT; They Think THAT
EMPOWERING THE BIGGEST DOESN'T HAVE AN
IMPACT.
IT DOES.
'EVERY ACTION HAS A RESPONSIBILITY.'

“Many OTHER DIGITAL PIONEERS share this vision
of re-decentralizing the web.
Ethan Zuckerman, the director of the MIT Center for Civic
Media and another key member of the founding
generation of internet geeks, believes that this struggle
between the forces of centralization and
decentralization has been a familiar feature of the
digital economy even as far back as 1993, when there
were no online directories for navigating the web.”
Since Commerce has entered the internet, the temptation
has been too strong, and the FREEDOM OF THE
INDIVIDUAL (THE USER) HAS GONE WITH IT.

WE COMPLAIN about the intrusion of Google-Facebook-
Twitter and their power of centralization ('censorship'),
but the focus on technology has been lost.
So we don't care about the individual anymore but about
the commerce. IN THE END EVERYONE LOSES!!!

The Internet must once again become a technological object
again that emphasizes freedom at the expense of the
enrichment of a few multinationals or large groups or
even companies of sufficient size.
A SOCIETY IS THE FREEDOM OF ITS INDIVIDUALS
OVER THE COLLECTIVE. The collective (collectivism) kills
and always ends up with the establishment of a
totalitarian regime.
And the censorship carried out these last years by these
big companies show well, that we do not need a state
apparatus or a political party, to censor the individuals.

We need to stop these people(companies), 'AND ONLY
TECHNOLOGY WILL ALLOW IT' 'as we have seen with
the blockchain'.

““For old-school cyberutopians like me, it is
extremely disappointing that the internet IS NOT
INHERENTLY DECENTRALIZING”.
Like many other idealists, he is critical of the entire
ecosystem of today’s online economy.
HE ARGUES that we’ve become too dependent ON
THE ADVERTISING BUSINESS MODEL that
compounds the already exaggerated power of winner-
take-all advertising companies like Google, YouTube, or
Facebook.
The more we publish, the more dominant these
companies become, he says.

So rather than technology, the fundamental problem with
the web today is its dominant business model.
The challenge, then, is the reinvention of INTERNET
ECONOMICS.
It requires us to RETHINK THE WHOLE
ECOSYSTEM.”
GOOGLE, FACEBOOK, TWITTER, AND CO. ARE ONLY
INTERMEDIARIES.
WE HAVE SEEN that with blockchain technology, WE
CAN DO WITHOUT INTERMEDIARIES.

“It’s the end of the digital middleman, Burnham
predicts; good-bye to the networked intermediary.
One example of these protocols that Burnham cites in his
speech is the open-source InterPlanetary File System
(IPFS), designed to establish a permanent and
decentralized method of storing and sharing files.
Protocols like IPFS are allowing for the online exchange
of data between independent players, resulting in the
creation of what Burnham calls “DECENTRALIZED
MARKETPLACES.”

Other examples of this are the so-called decentralized
autonomous organizations (DAOs), such as the
controversial peer-to-peer currencies Bitcoin and
Etherium, which operate on blockchain technology.
These networked platforms do away with the need for
the middleman: a bank or a government agency.
They are returning us to Berners-Lee’s original web, a
level playing field on which power resides on the edge,
with its users.

Burnham quotes Mark Twain. History doesn’t exactly
repeat itself, he answers, but it “rhymes” in a
perpetual cycle of innovation. In 1995, he explains,
the market opened up with the shift from the desktop
computer industry, dominated by Microsoft, to a
market defined by the web. The business model
gradually moved from packaged software to open-
source technology—a process that, in turn, gave rise
to the Web 2.0 revolution of Google and Facebook.
And today, he explains, we are back with a new kind
of disruptive technology that is challenging the
dominance of the winner-take-all companies of the
Web 2.0 revolution.

Then, in the final discussion of the day, there is a panel on
“sustainable ways of monetizing content.” One of the
panelists is Tim Schumacher, the cofounder and executive
chairman of a Cologne-based company called Adblock
Plus, an open-source app that prevents online advertising
from showing up on your web browser. Schumacher is
on the panel to discuss his company’s new partnership
with Flattr, a Swedish-based micro-donation provider. But
before describing this deal with Flattr, Schumacher asks
the audience for a show of hands about who is using
Adblock Plus’s product.

EVERYONE, ABSOLUTELY EVERYONE ON THE
TOP FLOOR OF THE OLD BERLIN CARPET
FACTORY RAISES A HAND. THEY ARE ALL USING
THE SAME DISRUPTIVE TECHNOLOGY THAT, IN
BRAD BURNHAM’S “AGE OF INNOVATION FROM
BELOW,” EMPOWERS THEM TO BLOCK ONLINE
ADVERTISING—THE VERY HEART OF TODAY’S
CONVENTIONAL BUSINESS ECOSYSTEM.
SO THEY ARE PROVING NOT ONLY THAT THE
CURRENT BUSINESS MODEL OF THE INTERNET
DOESN’T WORK, BUT ALSO THAT THERE MIGHT
BE AN ALTERNATIVE ECOSYSTEM.”

This economico-economic system is the old economy. I
would not have believed from the beginning of the internet,
that this one model could dare "to make its intrusion on
Internet".
And yet it is as obsolete as the Fax or the Television.
AND IT IS THIS SAME TECHNOLOGY THAT HAS BEEN
BLOCKING us since the Intrusion of "Online Commerce" and
Google's PageRank.
OLD, MULTI-MILLENNIAL METHODS OF SELLING
HAVE BEEN ADOPTED ON A DIGITAL PLATFORM
LIKE THE INTERNET. IT MAKES NO SENSE AT ALL!
One thing is certain, it will not stand up to the blockchain
technology.

From The Death of the Gods: The New Global Power Grab by
Carl Miller:
”Organised societies have always sought to limit power, to
put it under democratic control, and one example OF
THAT HAS BEEN TO BREAK UP MONOPOLIES.
The tech giants are based on monopolies of data and
control of dominant networks.”
How Do you break up monopolies of companies whose
users are ALL OVER THE WORLD?
THE ANSWER IS SIMPLE BECAUSE THERE IS NO
QUESTION FIRST.
There is NO ANSWER because these monopoly companies
are playing on a loophole in the system, the
internationalization of 'their products'.

These monopolistic companies know well that they are
playing "WITH THE NATIONALISTIC MACHINERY",
TOO WELL, and that they will "never be legally
breakable".
And they have been playing "this game" since the first day,
as soon as they understood that they could 'use this
spring'.
THE SOLUTION, AGAIN, IS TO ANSWER A
TECHNOLOGICAL PROBLEM WITH A TECHNOLOGY:
and BLOCKCHAIN IS -MADE FOR THAT-.

Blockchain explained

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Blockchain explained

Ähnlich wie Blockchain explained (20)

Mehr von Periodic Reset Of Civilizations

Mehr von Periodic Reset Of Civilizations (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Blockchain explained