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What is Web 3.0 and how it will change the world as we know it

What is Web 3.0?

Web 3.0 is the third generation of Internet services for web pages and applications. It will focus on using machine-based data understanding to provide a semantic and data-enabled Web. The ultimate goal of Web 3.0 is to create more intelligent, connected and open websites.

It is not yet implemented, so there is no clear definition. To give you an idea, making the transition from the original web, from Web 1.0 to Web 2.0, took more than ten years. That said, it is expected to take a similar amount of time, if not longer, to fully implement and reshape the web with 3.0.

But not everything will take so long to arrive. There are some technologies that will define this new website that are already being developed. For example, smart home appliances that use wireless networks and IoT are examples of how Web 3.0 is already impacting technology.

In short, if we think of Web 1.0 as a static information provider where people read web pages but rarely interact, and of Web 2.0 as an interactive and social Web that allows collaboration between users, we can assume that Web 3.0 It will change both how websites are made and how people will interact.

When did web 3.0 emerge?

First, Web 1.0, also known as the World Wide Web, appeared. Most of us will remember those days when connecting to the Internet was a very noisy process. Web pages were static and took forever to load.

As more people began to use the Internet, the potential it had began to be understood. For this reason, new infrastructures were created to promote it. The Internet became faster and allowed for heavier applications and websites, giving rise to the era of social networks and platforms such as Netflix, YouTube or Amazon.

Today, people around the world can share information and be entertained, shop, find answers to their questions and interact with each other thanks to Web 2.0.

On the other hand, Apple's Siri or Alexa are examples of Web 3.0, since they combine artificial intelligence with voice recognition . This network is still developing and there is still a long way to go.

Many technologies are currently being tested with the aim of promoting the automation of most tasks. This includes, for example, artificial intelligence, big data or blockchain , although there are other technologies that are still being developed. Specifically, these new technologies require more advanced skills that are currently difficult to incorporate.

What it does seem is that Web 3.0 will focus primarily on data . This data is infinite and, therefore, it is necessary to design an appropriate storage technology and architecture. Although Big Data seems to be the way to go, there is still much to be researched into the most effective use of technology to store data, as privacy issues could arise.

Benefits of Web 3.0

Now that we know what Web 3.0 is, let's look at some of its benefits:

Reliability

This network will give creators and users more freedom overall. It will ensure that the latter always have control over their online data through the use of decentralized networks. The next version of the Internet is also expected to be more reliable given its decentralized nature, eliminating the possibility of a single point of failure.

It's for everyone

It does not need to be controlled by a single entity. Larger companies may no longer have full control over the Internet. As a result, decentralized applications or apps cannot be censored or restricted in any way.

Internet Personalization

We can also personalize our browsing experience because this type of website will be able to understand our preferences. This will also allow us to navigate more productively.

Allows sellers to sell better

Sellers will better understand our purchasing needs and show us those products and services that we are interested in buying with the help of artificial intelligence. This will allow us to see better and more relevant ads that are more likely to be beneficial to us.

Fewer interruptions

Since data will be stored in distributed databases due to decentralization, users will not have to worry about service interruptions or account suspensions for technical reasons.

Features of web 3.0

As we mentioned in the previous point, one of the key characteristics of web 3.0 is decentralization. In this new version, data will be connected in a decentralized way, unlike 2.0, where it is mainly stored in centralized places.

In Web 3.0, users will also be able to interact with data thanks to the use of artificial intelligence and machine learning technology. That is, it will combine the concepts of the Semantic Web3 development company  with AI.

On the other hand, the use of artificial intelligence will allow data to be provided much faster to users and for them to be more relevant and personified. We are starting to see the use of this technology on the Internet through algorithms that are used to suggest products or videos to users based on their previous searches . However, this will be even more advanced.

We could say that Web 3.0 will be, in some way, a return to the original concept of the web. A place where permission from a central authority is not needed to publish as there is no control.

While Web 2.0 has been characterized by centralization, surveillance and invasive ads, the use of decentralized technologies such as blockchain development company will allow for a more open environment where data on the Internet is decentralized.

In this sense, 3.0 will allow decentralized applications to displace centralized social networks like Facebook and people will retain ownership of their personal data.

In summary, the future of the Internet, blockchain technology and cryptocurrencies will be interconnected and automated through the use of smart contracts . 3.0 will be an updated and improved version of the Internet we use today, but with additional benefits due to decentralization.

Why web 3.0 is important for the company

The impact of Web 3.0 on companies will be carried out in different ways. On the one hand, it will make them highly user-centered and more transparent . Everything that was wrong about user data will undergo a radical transformation.

Traditional and new businesses will welcome Blockchain technology and all the possibilities it brings. You will see that your applications will receive blockchain updates in which everything will be made public and accessible.

Web 3.0 will mean an important change in the way the Internet works, focusing on user privacy. In fact, this is a problem that has been discussed for a long time but has not been effectively resolved.

3.0 uses blockchain technology, unlike Web 2.0, which takes advantage of the Internet to develop applications. It is technically safer to store customer data on a blockchain as it is decentralized and its use by businesses is transparent, thus protecting it from hackers. Some experts say transferring ownership of data to consumers could disrupt the technology sector. And this is because many technology companies would lose access to the data that has given them a competitive advantage until now.

Additionally, thanks to blockchain technology, website visitors will have a more pleasant login experience. Think about how many times you have logged into websites using your Facebook profile. Blockchain technology uses the same principle as Facebook, which already has user information. However, by using Blockchain, you will be the sole owner of your information.

Examples of web 3.0

Finally, let's look at some examples of the application of Web 3.0. On the one hand we have Apple's Siri, which uses voice recognition and artificial intelligence techniques to bring results and perform actions . To give us an idea of ​​the improvement it represents, Web 1.0 and 2.0 search for word-by-word matches in the text in relation to what is published on the Internet. This often brings with it an information bias.

Web 3.0 systems, however, seek contextualized knowledge to help people in their searches, pointing to a series of analyzes and potentially useful information. One of the distinctions of the Web 3.0 search engine is the time the user needs to spend navigating a sea of ​​information to find what they really want resolved.

Companies like Apple and IBM have been investing heavily in Web 3.0 technologies. For example, Google Inc. over the last decade has made several acquisitions of companies in the area of ​​the Semantic Web, such as Applied Semantics and Metaweb Technologies, Inc, among others.

What did you think of this article about what Web 3.0 is ? Leave your comments and share!

And if you want to become an expert in blockchain, train with the IEBS Master in Blockchain . You will learn, among other things and through an online methodology, the bases of these new payment and financing methods, to apply them within any business. We will wait for you!

[jayasuriyan]

Blockchain: what it is, how it works and the most common uses

What is blockchain?

It literally means blockchain is a database or public registry that can be shared by a multitude of users in peer-to-peer mode (P2P or peer network) and that allows the storage of information in an immutable and organized way.  

It is a term associated with cryptocurrencies because, apart from being the technology that supports them, it was born with the first virtual currency in history in 2009, Bitcoin . In this case, the data added to the blockchain is public and can be consulted at any time by network users.

However, it is important to remember that cryptocurrencies are just that, currencies! Just as happens with the euro, the dollar or any type of paper money. Each one is a simple material with a printed value, but what allows its use and generates value are the economic laws that support them.

Something similar happens with virtual currencies. In this case, it is blockchain technology that allows it to function. Its main objective is to create an unchangeable record of everything that happens in the blockchain, which is why we are talking about a secure and transparent system. 

Bitcoin (BTC), Ethereum (ETH) or any other cryptocurrency is simply a virtual currency built on the blockchain and used to send or receive the amount of money that each participant has. This technology is what keeps transactions publicly recorded, but keeping the identity of the participants anonymous.

However, although it was created to store the history of Bitcoin operations, over the years it has identified great potential to be applied in other areas and sectors due to the possibilities it offers.

Features of blockchain technology

The progress of this system has been a mystery since its origin, but little by little we are learning more details about its operation:

Security

Cryptography is a fundamental pillar in the operation of the blockchain application development company, which provides security for the data stored in the system, as well as the information shared between the nodes of the network. When we are going to make a transaction, we need a set of valid asymmetric keys to be able to carry it out on the blockchain. It is also known as public key cryptography.

Trust

By representing a shared record of facts, this technology generates trust in users. Not only that, but it eliminates the possibility of manipulation by hackers and generates a ledger of operations that all members of the network can access. 

Immutability

When information is added to the distributed database, it is virtually impossible to modify it. Thanks to asymmetric cryptography and hash functions, a distributed ledger can be implemented that guarantees security. In addition, it allows consensus on data integrity to be reached among network participants without having to resort to an entity that centralizes the information. 

Transparency

It is one of the basic requirements to generate trust. Transparency in blockchain consulting services is attained by making the chain's software code publicly available and by fostering a network of nodes that use it. Its application in different activities, such as supply chains, allows product traceability from origin.

Traceability

It allows knowledge of all operations carried out, as well as the review of transactions made at a specific time. Traceability is a procedure that allows us to follow the evolution of a product in each of its stages, as well as who, how, when and where it has been intervened on. This is one of the main reasons why many sectors are beginning to apply blockchain technology.

3 keys to understanding how the blockchain works

It will only take you a single step to become an expert on the blockchain consulting services. Now that you know its definition and the main characteristics and related terms, it is time to put everything you have learned together to discover how it works. Take note!

The jack, horse, king of transactions

Networks use peer-to-peer data exchange technology to connect different users who share information. That is, the data is not centralized in a central system, but shared by all users of the network. At the moment a transaction is made, it is recorded as a block of data transmitted to all parties with the objective of being validated. 

The transaction is the movement of an asset and the block can record the information of your choice, from what, who, when, to where, how much and how. Like an irreversible record, each block joins the preceding and following ones to form a chain (blockchain). Every new block removes the chance of manipulation and strengthens the previous one's verification. Finally, the transaction is completed. 

The structure of the blocks

The chain stores a lot of information, which allows it to grow over time. This is the reason why it has been necessary to create efficient query mechanisms without having to download all the information: the Merkle hash tree.

It is a tree data structure that allows a large number of separate data to be related to a single hash value, providing a very efficient method of verifying the contents of large information structures.

Generation of chain blocks

First of all, it is a decentralized process. And to do this, a distributed consensus is needed in which the nodes have the ability to generate valid data. In order for users to initiate new operations, they must turn into nodes within the system. If what they want is to become miners and create blocks, then they must compete with others. The validation process is based on asymmetric cryptography, with a public key and a private key. The issued transactions are validated by the nodes in the new mined block, as well as their correct linking to the previous block (it must contain the hash).

The most common uses of blockchain

“But this technology was created for cryptocurrency operations.”

That's right, but the passage of time, research and social needs have seen great potential in this technology to be applied in other areas:

Voting systems

Some states such as West Virginia are implementing electronic voting through blockchain, although it is still a framework to be regulated. But that's not necessary to go that far. After the last elections to the Madrid Assembly, as well as the COVID-19 pandemic situation and its restrictions on mobility and the gathering of people, they have proposed the establishment of electronic voting with blockchain.It is an extremely appealing voting system because of its traceability and immutability.Not only would it increase transparency and reliability, but you could audit in real time.

Smart Contracts

They are programs that allow you to fulfill and execute registered agreements between the parties automatically. They can be applied in any type of transaction where a registered agreement is necessary, such as a security deposit or the contracting of a product, among others. Among its main characteristics we find: self-execution and immutability. 

Supply chain

Supervision and monitoring in food chains, as well as in production, is one of the main applications proposed with blockchain. Some examples of this technology in the food and agricultural industry are: Walmart China, with food production constituted by IBM; or the Australian AgriDigital, which works with distributed ledgers, blockchain and Smart Contracts.

It is not what has already been done, but what is yet to come. At Occam Agencia Digital , as a blockchain development company, we are convinced that it is not just about programming, but about analyzing the client's needs and designing a unique user experience.

What are some ways that your business can benefit from blockchain technology? Tell us your questions, we can help you solve them.

Tokenization of real estate and assets

 Thanks to the transparency of the blockchain, the tokenization of assets is revolutionizing traditional sectors such as real estate investment, democratizing their purchase. 

This breaks the barrier to investing in safer assets, since, until now, if you wanted to buy a property, you had to do it alone or among a very small group of people. Thanks to tokenization, now you can buy an apartment between 100, 200, 1000 people by making a small contribution. 

This also allows you to diversify and minimize risk, being able to invest €100 in several properties.

It is very important to choose a blockchain development company that has developed a project using this technology, since these are complex developments with very little documentation on the internet to help developers.

How to do good blockchain development?

We invite you to take note of the steps necessary for the development of the blockchain:

The first thing to do is a briefing between both parties . The client provides the information on the business model, and the blockchain development company offers the expertise to design the platform using the most optimal technology.

It is very important to choose the technologies to be used, since in blockchain each transaction has a cost. Depending on the blockchain chosen, it can cost between €10 or €0.0001 each.

It is imperative that the blockchain development company determines which components of the platform need to function in order to have a well-balanced security, user experience, and cost per use system that is suitable and tailored to the client's suggested business model. 

For example, if you want to develop a platform to tokenize real estate so that investors can buy tokens from these, the most recommended thing is that all the functionality related to the purchase or investment is developed on blockchain technology, and the rest of the functionalities are developed using the traditional way. In this way, you will achieve a good user experience, great security in purchases and low costs.

Once the briefing is finished, we move on to the design phase . With the briefing in hand, it's time for the UX and UI experts to get to work. With the information collected, you must design a platform with a great user experience and a friendly interface to convey confidence to the user and allow them to operate very easily. You'll be able to stay on the platform and avoid getting frustrated or giving up.

[jayasuriyan]

What do Blockchain Consulting Companies Offer?

What do Blockchain Consulting Companies Offer?

Typically, business requirements would vary greatly from industry to industry. I am not saying that all the needs are currently available in the market. However, many of them are emerging or need more maturation.

HOW TO CHOOSE A BLOCKCHAIN ​​CONSULTING PROVIDER

It is usually classified into 5 different areas. I'm going to describe each of them to make sure you know what type of services you need. Furthermore, it would also help you understand if your needs are mature enough in the market.

So, let's get started!

1. Curation strategies

It is the execution phase, where generally any organization will go to blockchain development consulting companies to look for solutions. Mainly here, companies want to know more about how their business would be affected with blockchain disrupting every industry.

Actually, many blockchain consulting providers offer four types of services –

Impact Analysis: Here, Blockchain consulting companies would analyze the impact of blockchain on a particular organization.

Possible business tactics: Blockchain consultants would propose possible business tactics to deal with the impact.

Future Roadmaps: Here, blockchain development consulting firms will outline possible planning for the organization to follow.

Ideation workshop: Many consulting firms offer workshops to give them direct lectures on how blockchain can impact and how they can deal with disruptive solutions.

2. Business solutions

After a company makes a calculation to go further with blockchain, they would seek help from blockchain consulting agencies. In this part, blockchain consulting firms mainly offer to identify possible use cases specifically for that company.

Additionally, they would also describe how the investment cases or requirements may cost them. But how will you know which one is right for you and which one isn't? Well, here, most blockchain consulting providers mainly use their knowledge within the industries to identify the possible solutions for you.

Furthermore, both technology service providers and business consulting companies are experts in this niche. And it is all due to his previous history of enormous experiences.

However, the blockchain specialist can also offer an in-depth solution in this case as well.

Stakeholder Alignment – ​​Here, the blockchain consulting services provider would sit down with the stakeholders and outline how it would affect them and what the possible solution would be.

Design process: They will not only align stakeholders but also give technical insight into the design process.

Requirements Analysis: Another big problem is requirements. Then, blockchain consulting firms would further analyze those and deliver the needs.

Identification of use cases: Well, not all companies need the same use cases. That is why the blockchain consulting team will also identify possible use cases.

Business case development: After discovering the use cases, they would offer to develop the business cases around those use cases.

3. Technology offers

Typically, in these types of services, you would need the help of blockchain consulting offerings that provide architectures, APIs, frameworks, and other technical backups. This is because only these consulting firms can truly take the project to the POC level.

In reality, blockchain consulting firms not only bring their own touch to the POC, but also have a broader link. Therefore, you will see that many of these are associated with enterprise blockchain company or startups offering the best of the best products.

So you are not only getting any kind of technical support for the POC, but you are also getting it from the best of the best companies in the market.

Both technology service providers and business consulting companies are experts in this niche. But the blockchain specialist personally worked on previous blockchain networks, so they also offer great support.

Technology Strategy: As these deals are for the next phase, it is common to get a technology strategy like which frameworks are the best or which blockchain company offers the most value.

Framework Implementation: After that, the framework implementation process begins. In reality, it is mostly a very limited design.

Pre-built solutions: In most cases, since blockchain consulting companies have previous experiences, they may already have the solution you need. For example, perhaps a similar industry wanted a solution close to their company. In that case, consulting firms already have a solution built in advance.

Reference Architecture: Sometimes they may follow a reference architecture but make some internal changes to better meet your requirements.

POC Development: Well, this is the main offering and the most popular one for that matter. Once every company sees the value that blockchain brings them, they want to develop a POC to test it.

Offering API: You would need API to get full functionality of business cases. And so, companies also offer this.

4. Risk management

In reality, no matter how far blockchain technology has come, it still needs a lot of things to change. Additionally, due to the immaturity of the network system, many consultancies tend to limit their offerings to only building POCs.

However, the need to explore the risks and security gaps around them are very necessary. A gift that only a handful of TSPs and blockchain consulting companies are exploring. Actually, if the blockchain solution faces any bug in testing, only a few offer a solution for that.

Additionally, offering tax planning, auditing or ICO is also on the risk management list. Because with everything, companies need to know what problems they have to deal with.

These types of offerings are still growing and hopefully we'll see more in the future.

Risk analysis:

At first, they would analyze the risks associated with business processes. In reality, no company should jump into any blockchain solution without fully understanding the risk factors.

Legal terms:

With every implementation, there are some legal terms associated with it. Then, blockchain consulting firms would also offer legal advice on the solution.

Government structure:

Well, the most important issue is the government structure. Not all blockchains come with the same governance structure. Additionally, companies cannot offer a public network that anyone can access. That is why implying what kind of government they would have and what risk measures they would have to take is very essential.

Data privacy:

This is one of the main risk points, and many consulting companies cannot offer this service. On the other hand, a handful of companies are starting to look at it more.

Third Party Risk Management:

As risk management is an emerging blockchain consulting service, that is why many companies offer third-party risk management for companies that need it. Better than nothing, right?

Regulatory compliance:

All blockchain consulting companies that are engaged in risk management sectors tend to offer regulatory compliances. Plus, he makes sure everything is on point.

Cultivating digital trust:

You want to implement a blockchain solution , but would your consumers feel the same way? Well, in many cases, maybe not. However, blockchain consulting companies can handle it. Therefore, they would cultivate the digital trust necessary for their solution within their customers.

5. Integration process

Well, these are the offers that are currently in development. In this niche, blockchain consulting firms cover the integration of the blockchain solution to the existing network system. However, this process is quite difficult as they would have to completely change the internal network of any organization.

Another problem is that, as many are exploring blockchain, but only a few take it to integration. In reality, integration is not something that most companies like, although this will give them a big boost.

However, I can safely assume that these offerings would be the most in-demand in the future. Blockchain consulting firms would then offer to change legacy networks or build a way for the pair to form networks together.

So you would need APIs, frameworks for that. I hope the TSPs take the lead here as they have a lot of technological background here. Furthermore, business consulting companies would not be far behind.

Disaster recovery:

Well, you never know when your solution might fail. In reality, the blockchain network is quite complex, and simple loopholes could cause a disaster. However, you would need to have a backup in case any unwanted problems occur.

Continuous business:

Blockchain consulting companies should offer you solutions to continue with your blockchain technology. You definitely don't want to be stuck with the same use cases as time goes on. Therefore, you would need to improve or increase the features to stand out in the market.

Securing data:

Well, few blockchain consulting firms offer this at the moment. Here, you would get the extra layer of security for your solution.

Integration with legacy systems:

Since replacing a legacy enterprise network system requires a significant amount of time, it is better to integrate with existing networks than to replace it entirely. However, this offer is not yet available at many companies.

Business Process Modification:

Many blockchain consulting companies offer services to modify typical business processes to better accommodate new changes.

Cloud management:

Since the networks would be in the cloud, it poses some serious threats. Therefore, the need for cloud management is necessary, and many consulting companies are starting to offer it.

Data standards:

The use of data standards is necessary because it must be aligned with stable blockchain networks on the market.

[jayasuriyan]

Unlocking Efficiency: Exploring Blockchain Scalability Solutions

In the rapidly evolving panorama of blockchain technology, scalability remains an essential task. As the demand for quicker transactions and elevated network efficiency grows, locating scalable answers has become imperative. In this text, we will delve into the intricacies of blockchain scalability and explore innovative solutions designed to deal with this bottleneck.

Introduction: The Need for Scalability in Blockchain

Blockchain, recognized for its decentralized and steady nature, encounters demanding situations as it expands. Traditional blockchain networks face obstacles in phrases of transaction speed, throughput, and resource intake. Scalability problems avert mainstream adoption, making it important to find out solutions that beautify the overall performance of blockchain networks.

Understanding Blockchain Scalability

Blockchain scalability refers back to the ability of a community to deal with a growing variety of transactions without compromising its velocity or protection. As extra users are part of the network, conventional blockchains experience congestion, mainly due to slower transaction instances and higher prices. To conquer these challenges, numerous scalability answers had been proposed and implemented.

1. Sharding: Breaking the Chains

One promising answer is sharding, a method that divides the blockchain into smaller, more workable parts known as shards. Each shard techniques its transactions independently, substantially boosting the community's capacity. Sharding complements scalability with the aid of parallelizing transaction processing, resulting in quicker and greater efficient blockchain operations.

2. Layer 2 Solutions: Building on the Foundation

Layer 2 answers paintings by conducting transactions off the primary blockchain, decreasing congestion. Popular examples encompass the Lightning Network for Bitcoin and the Raiden Network for Ethereum. These solutions alleviate the burden on the principle blockchain, enabling quicker and extra cost-effective transactions.

3. Sidechains: Expanding the Horizons

Sidechains provide a further layer along the principle of blockchain development services, allowing users to conduct transactions within this parallel community. This separation facilitates faster transactions and decreases congestion on the principle chain. Sidechains are mainly powerful in eventualities wherein precise sorts of transactions can be processed independently.

Enhancing Cybersecurity through Scalability

Blockchain scalability no longer simplest addresses speed and efficiency but also plays a good sized position in improving cybersecurity. The decentralized and immutable nature of blockchain makes it inherently secure, and scalability solutions in addition strengthen those attributes.

The digital ledger residences of blockchain prevent data theft, fraud, and manipulation. The decentralized design removes the vulnerability associated with centralized structures, in which a single breach can compromise large quantities of information. Additionally, the distributed nature of blockchain helps mitigate the threat of Distributed Denial of Service (DDoS) attacks, making the network more strong and resilient.

Privacy and Anonymity in Scalable Blockchains

Privacy worries are paramount inside the virtual age, and blockchain scalability solutions also make a contribution to addressing them. As transactions end up quicker and greater green, privateness-focused functions gain prominence. Privacy cash like Monero leverage scalability solutions to provide better anonymity, making them perfect for protecting online privateness.

Compliance with Regulations: GDPR and Beyond

Blockchain scalability answers ought to also align with regulatory frameworks, along with the General Data Protection Regulation (GDPR). While blockchain is privacy-centered, it faces challenges in complying with the proper to deletion, a key element of GDPR. Striking a balance between the immutable nature of blockchain and regulatory requirements stays important attention.

Conclusion: Navigating the Future of Blockchain Scalability

In conclusion, blockchain scalability answers are pivotal for the sizable adoption and evolution of blockchain technology. Sharding, layer 2 answers, sidechains, and other innovative techniques provide pathways to conquer cutting-edge boundaries. As the blockchain environment continues to adapt, scalability answers will play an important position in shaping the destiny of decentralized and efficient digital transactions.

Explore seamless scalability for your blockchain endeavors with our expert consulting services—pioneering the future of decentralized efficiency.

[jayasuriyan]

WHAT IS A PRIVATE BLOCKCHAIN AND WHY IS IT NEEDED?

Many people associate blockchain technology with Bitcoin, but this is not a completely correct association. Bitcoin is just one of many projects that have gained popularity due to the insane rise in its value. However, in fact, behind all this popularity lies a unique technology.

What is blockchain? Blockchain is a distributed ledger technology - a chain of blocks with a specific set of data that records information about each transaction. Blockchain allows you to transfer information faster, more reliably and cheaper. Depending on the level of access, it can be divided into two groups: public and private.

In this article, we will explain what a private blockchain is and what is the difference between private and public blockchains. Read on to find out how it all works.

What is a private blockchain?

A private blockchain is a network to which access belongs to one person or authorized body. Private (also often called controlled) blockchains are technological solutions in which each participant has a predetermined level of access. Data uploaded to a private blockchain cannot be viewed.

Private blockchains do not fully implement the core principles of blockchain (decentralization of technology and equality of participants), as this can lead to significant risks for enterprise systems.

Examples of private blockchains

The most common example of a private blockchain that can be used in various projects and industries is the Hyperledger platform.

Hyperledger is an open source project from the Linux Foundation aimed at developing a number of blockchain business platforms, including Fabric from IBM, Sawtooth from Intel, Iroha, Indy and others. Based on them, you can create your own blockchain . Hyperledger provides a foundation and a set of interoperable tools for further development and customization.

Opportunities of private blockchains

There are several key features of a private blockchain that you need to know about:

Private blockchain ensures complete confidentiality. Only authorized persons have access to the network in a private blockchain. A potential user must obtain permission before accessing any data or participating in the process.

Private blockchain has high performance. Since the number of participants is limited, consensus can be reached by a small number of validators, which means private blockchains are much faster and can scale easily.

There is no anonymity in a private blockchain system. Users are known to the administrator; they provide documents and other information to verify their identity.

Why and when to use a private blockchain?

Private blockchains can be used in many areas, from accounting to agriculture. They can help save time and money by automating transactions between different organizations.

Why do companies choose private blockchain?

Increased trust: By implementing a private blockchain, companies can track the origin of counterfeit products and recall them in a timely manner.

Immutability: Once the information is recorded, no one can edit or change it, since the blockchain concept implies immutability. This prevents data corruption and reduces the risk of fraud.

Efficiency: Private blockchain speeds up various transactions. High data processing speed is a factor influencing the overall efficiency of the company.

In what areas are private blockchain systems most effective?

Insurance

Blockchain consulting systems provide direct communication between policyholders and insurers. This helps avoid the use of unreliable third party systems and time-consuming and costly manual claims administration processes.

Banking and finance

Every financial transaction involves many parties, each using their own internal decisions. Banks can use blockchain to collaborate on one transaction tracking system, which helps speed up the process.

Healthcare

Blockchain is a great idea for storing and managing electronic health records that contain patient health information. Blockchain-based healthcare solutions make these records easily accessible, ensure data security, and help streamline medical reporting.

Supply chain

Blockchain technology allows companies to track every component of a product, determine its authenticity, and prevent counterfeits from entering the supply chain. In this way, blockchain makes supply chains faster, more open, and more reliable.

Companies using private blockchains

Here are some examples of successful implementations of private blockchain technologies:

American multinational retail company Walmart uses a private blockchain food tracking system based on Hyperledger Fabric from IBM. This allows the company to track the origin of the product and the entire chain of its production in a matter of seconds.

Streaming service Spotify has acquired blockchain startup Mediachain to create a secure environment for protecting copyrights and paying musicians.

DHL and Accenture have launched a blockchain tracking and traceability system for the pharmaceutical industry that documents every step, from production to purchase, using unique serial numbers assigned to products.

How does a private blockchain network work?

Private and public blockchains function in a similar way.

Every computer on the network must confirm every transaction on the chain. Transactions are processed in blocks, which can contain several thousand records. When a block is full, it is closed, signed, and transferred to a new block as a unique hash. Thus, each block is connected to the previous block. This structure ensures that a transaction cannot be canceled or modified.

However, private blockchains have features that distinguish them from public ones, and here are some of them:

A private blockchain has full or partial centralization. Management in such blockchains is carried out using special nodes with elevated powers. They are responsible for the data distribution policy and user identification, and also certify the entry of data into the blockchain.

In private blockchains, only authorized participants can record information. Access to information can be general or limited, depending on the system.

The operating mechanism and access policy of a private blockchain system depend on specific protocols.

The private network operator has the right to cancel, edit or delete records in the blockchain.

Public vs private blockchain

The idea that private and public blockchains are rivals is widely held. This is wrong. It's just important to understand the difference between the two to make a decision for your project. Let's take a quick look at the main advantages and disadvantages of each solution.

Public blockchain

Advantages:

Safety: The more people working on a network, the more difficult it is to attack, since all elements of the chain are interconnected. It is almost impossible for attackers to take control of the entire network.

Low operating costs: The effectiveness of the public network is “controlled” by the entire community - developers, users, service providers and miners, who ensure the integrity of the network and the comfort of working in it. Therefore, the system allows you to create decentralized applications with minimal maintenance costs.

Powerful network effect: In such an environment, it is easy for a developer to gather a large user base around his application, since users of some applications in the system quickly learn about others that have just been created.

Private blockchain

Advantages

Confidentiality:  A private blockchain provides better privacy because access to the network is controlled and the data is often not even readable.

Speed: Private blockchains have far fewer participants, so the network takes less time to reach consensus.

Efficiency: Fast transaction processing improves business efficiency.

Scalability: Private blockchains can increase the number of transactions without slowing down.

Low transaction costs: Transactions on private networks are verified by trusted and powerful nodes, rather than by tens of thousands of user devices, as in public networks.

Confidence: The fact that the identity and role of each participant is not anonymous forces users to behave in accordance with established rules (or be held accountable according to the policies of the blockchain owner).

Conclusion

Data distribution using blockchain technology reduces the impact of human error, makes operations more transparent and increases data security. In addition, blockchain opens up new possibilities for a wide variety of processes and can replace many intermediaries.

Blockchain can be divided into two main groups - public and private. The principle of operation of both systems is the same, but the main difference is that the private blockchain is less decentralized and not anonymous.

Despite this, both public and private blockchains are in demand in different areas.Each of them has benefits and drawbacks of its own. Therefore, when integrating blockchain technology into your project, it is important to ensure that you have an experienced team that can make the right decision. If such specialists are not available, you can consider hiring blockchain developers on a permanent basis or through outstaffing.

[jayasuriyan]

Blockchain Revolution: Transforming Cybersecurity in the Digital Age

Blockchain is widely considered a powerful tool for financial, legal, and a wide range of other business applications. But what about security? Is it possible that the same technology used to protect transactions on an open digital ledger can also protect data and infrastructure?

Turns out yes. What's more, it can reimagine the entire security regime that has evolved over the past decade, likely making obsolete most enterprises' complex and expensive security ecosystems, from firewalls and monitoring platforms to antivirus and antimalware solutions .

A new paradigm

The first thing to understand about blockchain is that it operates on a completely different basis than the existing security paradigm, one “less traveled and not as hospitable to cybercriminals,” in the words of Infosys' Yogesh Shelke. Despite spending more than $1 trillion on traditional security measures in the last five years alone, hackers continue to exploit known and unknown vulnerabilities to access private data and systems, primarily by intercepting communications from devices, applications, and networks. .

Blockchain reduces these vulnerabilities in several ways:

Distributed Ledger

The very nature of its architecture eliminates the centralized storage paradigm that is the target of most hacking attempts. Now, instead of having to break into a single hardened storage facility, bad guys need to break into thousands simultaneously, or else alarms go off.

Advanced encryption

Since any member can view the ledger, whether it is a public or private blockchain development  company, blockchain encrypts your data using the most advanced technologies available. This allows businesses to secure communications, authenticate devices, validate configuration changes, and discover sensitive devices in an Internet of Things (IoT) ecosystem.

Collaborative consensus

Sophisticated algorithms continually monitor the chain for suspicious actions , anomalies, and false positives without the need for a central authority. This allows all copies of the chain to keep an eye on the others, so that even if one is compromised, the others will quickly identify and isolate the problem spot.

Unique Domain Name System (DNS)

Blockchain development services uses its own DNS architecture that allows it to thwart DDoS attacks by eliminating single points of failure that have been used to bring down large swaths of the Internet in the past.

In general, the main advantage that blockchain brings to security is that it is endemic to the platform itself. That is, security does not have to be deployed as an added layer to an already complex operating model.

Security is an operating model

In fact, security is the operating model. As SEO content strategist Ale Oluwatobi Emmanuel recently noted on Bitcoin Insider, the distributed ledger is designed to create trust in an otherwise untrustworthy system.

This produces a number of advantages:

Open and protected

Instead of hiding data within a secure perimeter , blockchain exposes it to the world and relies on peer-to-peer networks and robust verification processes to keep it safe.

Backup and recovery

It also has the advantage of taking advantage of computing power that is normally idle at any given time, and can rent resources to its members to maintain 24-hour surveillance .

This can be used not only for data protection but also for backup and recovery operations, offering capabilities such as continuous and automatic backup, instant recovery, data deduplication and error-free copy.

Is Blockchain the future of cybersecurity?

All of this allows blockchain to be established as the new security ecosystem to protect all digital communications, whether or not they are part of a blockchain. In a recent post in Security Boulevard, Sagi Kovaliov, from the cybersecurity consultancy PeopleActive, pointed out that it can be used to:

Secure identity management systems and data storage infrastructures;

Create decentralized warehouses to share cyber threat information;

Reduce theft and diversion of physical products by monitoring transactions throughout the supply chain;

Establish immutable records that are virtually immune to alteration or deletion.

Still, it is important to understand that blockchain security is not without security issues. Transaction data can be retrieved by anyone who has access to the chain , which in the case of a public blockchain is virtually anyone. This may force some organizations to deploy smaller chains on a few servers, increasing the chances of compromise.

Management challenges

Scalability can also become an issue the longer the blockchain consulting service remains active and is accumulating and generating data. With every node in the system processing and storing data, critical performance functions such as validation and key management could be affected. There is also the potential for inadvertent branching and splitting of the chain, which could open new security vulnerabilities to the entire chain.

These are technological challenges , of course, and as blockchains evolve, we can expect most of these problems to be minimized, if not eliminated entirely. But if blockchain is to produce a new foundation of security for the global data ecosystem, it is not likely to happen overnight.

Most organizations are already past the testing phase when it comes to blockchain implementation, but they are still a long way from fully trusting it, especially when it comes to the sum total of their data footprint.

The essential

The fact is that the demands of a digital economy are incompatible with the growing damage, financial and otherwise, that cybercrime is generating. The average data breach now costs millions in lost revenue, legal damages, and the erosion of trust and brand loyalty.

A new data transaction paradigm built from the ground up to be both open and secure may be just what the enterprise needs in the future.

[jayasuriyan]

What is a private blockchain?

A private blockchain is a suitable solution for confidential record management and centralized control of an entity. Unlike public blockchains, they offer higher levels of privacy and security, as well as greater fault tolerance and lower energy consumption.

Advantages and Disadvantages of Private Blockchains:

Private blockchains have good and bad sides when compared to public ones. It's important to understand these aspects.

Advantages:

1. More Privacy and Security:  By limiting who can access it, private blockchains reduce the chances of attacks and system issues.

2. Less Complexity:  Private blockchains are simpler because they don't need as much computer power as public ones.

3. Faster and Efficient:  These blockchains can be quicker since there are fewer people involved, lowering the chance of the system getting crowded.

4. Flexibility:  Unlike public blockchains, you can change some rules in private ones.

Disadvantages:

1. Not as Spread Out:  Private blockchains give more control to one main group, which can lead to some problems.

2. Dependent on Key Players:  For private blockchains to work well, everyone involved needs to stay active. If someone leaves, it can cause security issues.

3. Less Clear:  While private blockchains give more privacy, they also make things less clear. Some people might not be sure if everyone is following the rules.

Choosing between personal and public blockchains relies upon on what a organisation wishes. If you want greater privacy and protection for crucial facts, a personal blockchain is probably the best.If you need a public and open platform, then a public blockchain could be better.

Developing a Private Blockchain:

Making a private blockchain development company involves creating a secure network for handling important records and controlling a central group. Here are the main steps:

1. Private Blockchain and Database: You need a safe and scalable database to keep sensitive information secure.

2. Hyperledger Fabric:  Hyperledger Fabric, made by IBM, is a good choice for a private blockchain. It helps create custom networks with extra privacy and security.

3. Development for Any Company: Any company that needs to manage private records and have central control can use a private blockchain. Start by defining what you need, choose a platform like Hyperledger Fabric, and start designing and programming.

Smart Contracts and Private Blockchains

Smart contracts are computer programs that automatically do an agreement when certain conditions are met. They work closely with blockchains. Here's how they relate to private blockchains:

On a Private Blockchain: Smart contracts on a private blockchain automate business agreements. Only authorized people can use the network and make deals.

What Smart Contracts Do: On a private blockchain, smart contracts can do things like manage digital assets, check credit, sign documents, verify identities, and more.

Secure and Unchanging: Smart contracts on private blockchains are very secure and don't change, making business deals more efficient and reliable.

[jayasuriyan]

Top 7 Blockchain Business Models That You Should Know

Blockchain has caught the attention of different industries. Not only is it changing the way a business works, but it is also allowing innovations to evolve at a faster pace. This is why you will find many companies that are adopting blockchain. These same companies are playing with blockchain, making it more feasible for more general implementation.

With this cutting-edge innovation, we are seeing the rise in the use of blockchain business models. In today's article, we will explore blockchain business models. Decentralization has changed the way we perceive the problems around us and solves them in unique ways. Not only that, but it also opens up many opportunities for businesses. So how do you approach it? Selecting and applying the appropriate blockchain business models is the answer.

The need for a blockchain business model.

Blockchain itself is a new business model. With blockchain, organizations can turn their businesses into a decentralized platform that can disrupt the functioning of their business. It changes the entities, transaction flow, profits and also ensures that growth is maintained during the change.

Since the advent of bitcoin in 2009, there have been many cases where  blockchain failed or at least blockchain  applications failed miserably. Partly it was due to how the implementation was done, but it was also due to the flawed business model used by the companies.

Blockchain-based business models, such as the BitConnect business model, were nothing more than a Ponzi scheme. There are other models as well that prey on the credulous. We are going to ignore all these types of scams and focus only on legitimate blockchain business models.

From a technical perspective, we need a business model based on blockchain, which improves the functioning of companies and benefits end users.

The blockchain-based business model should also start focusing on entrepreneurs instead of just investors. This will cause projects to focus on utility rather than market value. SuchApp is one such project that focuses on utility by providing a blockchain-based messaging platform. This means that blockchain business ideas should work on both a macro and micro level, benefiting both the company's internal employees and end users.

Understanding the traditional business model

To better understand blockchain business models, we first need to learn more about the traditional business model. All companies that do not use blockchain use the traditional business model.

So how does the traditional business model work?

They basically provide services or goods and make profits from it. Consumers purchase the product or service at a prescribed rate. The established rate consists of all salaries or other expenses that the company has or may have during the process of delivering the service or product. Every business has a different way of being run. However, they use a basic centralized model.

The model consists of four main entities. It includes the owners or shareholders, the organization, customers and employees.

Types of blockchain business models

Now that we have established a basic idea of ​​traditional blockchain models and how companies make money with them, let's talk about the most important blockchain business models .

1.Token Economy – Utility Token Business Model

The utility token business model is prevalent in the industry. We also mentioned earlier in the post, where we tried to understand a blockchain business model through the eyes of the utility token business model. Currently, there are tons of startups, businesses or e-commerce using the utility-based blockchain model. Few examples of decentralized businesses include BANKEX tokens, EDU tokens, etc. Ripple is also a utility token as it powers the network and facilitates network activities in one way or another.

Companies retain some utility tokens and release the rest for network functionality. When the utility token's value fluctuates, they profit. The idea of ​​working with tokens can be summarized with the word “Tokenomics”.

Utility tokens must have three important variables. For example, it must have a proper function, feature, and purpose.

2. Blockchain as a service business model (BaaS)

Blockchain as a service is one of the most popular blockchain business models out there. It is about providing an ecosystem for other companies to manage their  blockchain system . In this ecosystem, companies can experiment, test and do research. Right now, Microsoft (Azure), Amazon (AWS), IBM (BlueMix), etc. They offer blockchain as a service (BaaS) and are the perfect example of decentralized companies.

End users (in this case, companies, startups or organizations) do not have to worry about how the blockchain works and do not need to configure it before working on it. BaaS also eliminates the need for hardware, which, in turn, allows startups , companies or organizations to focus on their development cycle.

Most current blockchain solutions, including Bitcoin and Ethereum, can be served as a service. An example of this includes EBaas, Ethereum Blockchain as a Service (EBaaS). ConsenSys and Microsoft work together to manage and provide the service.

3. Development platforms

The general idea of ​​blockchain is still in its initial stage. A lot of development and research is going into blockchain as startups are trying to solve problems in unique ways. This brings us to our next decentralized business model known as development platforms. Companies today focus on developing applications that can result in blockchain infrastructure. Those applications that can be served using blockchain and the cloud to the end user provide rapid development.

Hyperledger is one such example that provides tools, frameworks, and guidelines for blockchain development services. The key here is  rapid  development, and they are trying to do just that. Other examples include Tendermint and EthCore.

BlockApps, an enterprise development blockchain application, provides a platform to launch enterprise blockchain applications.

4. Products based on blockchain software

The concept of blockchain was introduced in 2009. However, now, the need for blockchain is more than ever. This means that big players have to adopt blockchain soon.

The easiest way for them to cooperate is by purchasing a blockchain solution and integrating it into their system. This gives rise to blockchain companies creating a solution and then selling it to larger companies. Providing blockchain technology to other organizations can be extremely profitable, as they will not only receive a reasonable payment up front. Additionally, they will also need to provide support after implementation.

The MediaChain blockchain that was sold to Spotify is a perfect example of this type of blockchain business model . It is done to resolve music rights issues within the music industry. It will bring transparency in the system and reward music creators more for using an already established platform.

Another reason to purchase a blockchain-based software solution is the lack of talent in the market. Companies do not want to go through the talent acquisition process. That's why it's much easier for them to buy a blockchain solution that fits their requirements.

5. Network fee charge

Another blockchain business model is to have a network fee associated with the blockchain. This type of blockchain business model applies to solutions such as Ethereum or dApps that charge a small amount to the user for different activities on the network. For example, the Ethereum network charges Ethereum developers to make their dApp live. The same is true for NEO, which has a fee for dApp publishing.

6. Professional blockchain services

The last blockchain business model we are going to discuss is professional Blockchain services. These services are provided by market-leading development companies to startups or other businesses to make them blockchain ready. For example, a company wants someone to build their custom blockchain project. In that case, they can hire companies like Deloitte , IBM, or others to complete the project for them.

The key here is not to invest in the hardware, software or team building, but directly take the services of the blockchain development company that have perfected the art of blockchain development. You can also find smaller companies in this market. Overall, it is a great blockchain business model for talented blockchain professionals who want to use their skills to do business.

There are other forms of professional blockchain services. For example, many blockchain-enabled companies offer blockchain-related services, such as consulting, legal document development, or company auditing.

7.  Blockchain P2P Business Model

The P2P business model offers a peer-to-peer driven business. Blockchain technology has always been peer-to-peer. The P2P blockchain allows end users to interact with each other directly. This makes it part of almost all the other blockchain models we have discussed above. The P2P business model can be monetized in many ways, including tokens, BaaS, or transaction fees.

IPFS, an interplanetary file system takes advantage of this blockchain business model. Filecoin also uses the P2P business model of blockchain by providing a platform for data storage and sharing. To make it viable, anyone who hosts the files for other users will earn Free Coins for their contribution. Additionally, there is mining software that will allow users to share their unused storage space.

[jayasuriyan]

Benford's Law And Scarce Resources: Can Blockchain Be A Solution To The Questioned Performance Of Governments?

Imagine you are a mathematician from the 1800s…

You are fascinated by the observation of the Universe, so much so that your hobby is theorizing about stars and planets, but spoiler alert: The calculator has not yet been created and you need a tool that helps you operate with the numerical data that arise from your astral observations .

Thus, one morning that seems to be the same as any other, you prepare your breakfast and open your book of logarithm tables, which is that book that another fanatic mathematician created many mornings before - about 200 years ago, more precisely - and that you use to make calculations with multi-digit numbers -because of course, the universe is very large and requires equally complex calculations-.

Suddenly you notice something on the pages of the book that, apparently, you had never noticed before. The edges of the first pages of the book are more damaged, because the pages are more used, and as the pages of the logarithms book turn, they are less damaged because you used them less. At that moment your heart skips a beat and you feel like you have something interesting on your hands… you have discovered something about “the behavior” of numbers: statistically, numbers tend to begin more frequently with the number “1” than with any other digit of the number. 1 to 9 .

Thus it was that one morning that seemed like any other, Simon Newcomb discovered that the initial digits of the numbers of a given set of numbers are not equally probable between 1 and 9 (as we could easily assume), but that the The possibility of 1 leading a given number is more likely than a 2, a 3, a 4, and so on until reaching 9.

This is equivalent to the phenomenon you would observe if you were to write down a very large set of numbers on your computer: the number 1 key would be more worn than the others .

Coincidence or law?

Its discovery went unnoticed until almost a century later, when physicist Frank Benford observed the same pattern. He studied 20,000 numbers from different samples: home addresses, physical magnitudes, sports statistics, among others... and verified that the probability of a number in a data series starting with 1 was greater than with any other number from 1 to 9, so that the probability that the first digit is 1 is 30%, 2 is 17%, 3 is 12%, and so on, and when graphed, it shows a decreasing curve.

This statistical phenomenon is known as “ Benford's Law ”, and is used in various areas of mathematics and statistics.

The greater frequency of the number 1 heading numbers is surprising, since this statistical trend was verified using several different sets of numbers on several occasions, and - unless it is a very small set of numbers, or they respond to games of chance - the demonstrations were satisfactory, proving that this law is indeed manifested in nature.

Unexplained mystery or inherent scarcity?

If we observe the world around us, without this statistical phenomenon ceasing to seem wonderful, we can notice that this game of probabilities responds to the inherent scarcity of things . If we use numbers to count what surrounds us, we can easily show that resources are limited, so we can think that it is expected that numbers demonstrate the finitude of available resources , with a greater probability that 1 is the first digit. of multi-digit numbers in general.

How do we face the scarcity of resources?

Benford's Law, among its many uses, reminds us of the finitude of available resources and with it, the imperative need to have an efficient governmental administration of resources , which will be by definition — and also observable by this law — always scarce and limited.

Lack of trust in government authorities in the efficient administration of resources is a collective problem that affects the citizens of modern nations in general. Corruption, lack of transparency and inequality have undermined trust in the actors of the Modern State.

The future is promising.

In this adverse context, with scarce resources and lack of trust in institutions, the application of technology in new government management models can be the path to effectiveness and transparency .

The chain of blocks and smart contracts - better known as Blockchain development company and Smart Contracts - will provide the public administration with greater speed, reliability and transparency in the management of scarce resources, allowing greater control of tracking and monitoring by the citizens of the country. management of resources and funds of the current political administration.

[jayasuriyan]

Crypto ecosystem trends in 2024, according to Binance Research

Binance's research department published a detailed report on the most recent events in the crypto ecosystem and Bitcoin, DeFi (Decentralized Finance), stablecoins and NFTs (Non-Fungible Tokens), where it projects an optimistic scenario for the crypto ecosystem in the year 2024.

Rebirth of Crypto Enthusiasm in 2023

Although it could still be anticipated to officially declare the resurgence of a bull market, the current year has witnessed renewed enthusiasm in the cryptocurrency sphere. The Binance team bases its observations and comments on the events and trends that have been evident in the market in recent months.

And to provide more depth of what this journey has been, the Binance research group was in charge of preparing a detailed summary of key topics and metrics that must be followed closely in the coming months and where, in addition, the main ones are broken down. crypto trends anticipated for next year.

Bitcoin in the Spotlight: Decisive Developments for 2024

The year 2023 has been a rollercoaster of events for Bitcoin, with significant developments spanning various areas. The introduction of Ordinals paved the way for innovations such as “ Inscriptions ,” which brought the commonly known NFTs to Bitcoin, thus gaining prominence in the ecosystem. Additionally, optimism surrounding potential approvals of Bitcoin exchange-traded funds (ETFs) in the United States has drawn the gaze of traditional institutional investors to the fascinating world of cryptocurrencies.

From a performance standpoint, Bitcoin (BTC) has outperformed many other key assets and indices, both traditional and crypto. As of December 5, 2023, BTC market capitalization has seen an impressive 162% year-on-year increase. Some of the crucial BTC developments that deserve special attention in 2024 include:

US BTC Spot ETF Approval: After notable progress in 2023, with the ruling in favor of Grayscale in August, the SEC is expected to review 13 BTC Spot ETF applications, with deadlines to be They extend from January to August 2024.

Bitcoin Halving: Expected in April 2024, this measure, designed to increase scarcity and strengthen the narrative of BTC as " digital gold ", could have a significant impact on the price of the cryptocurrency.

Ordinals and Inscriptions: The introduction of this system has allowed the creation of " Bitcoin NFTs " and has catalyzed the emergence of the so-called BRC-20 tokens, marking a milestone in the history of Bitcoin.

The positive quarterly net change in supply of the top five stablecoins by market capitalization during the last quarter of 2023 suggests possible buying pressure, marking a significant change from the beginning of 2022. As for NFTs, after experiencing monthly declines From February to September, a considerable increase in trading volumes was observed in November, highlighting the growth of Bitcoin NFTs.

Protocol commissions and competition in Layer 1 networks

Commissions generated across various protocols increased more than 88% when comparing November to January, with Ethereum leading as the largest generator, followed by DeFi projects such as Lido and Uniswap. On the other hand, non-fungible tokens or NFTs were also an important generator of commissions in 2023, with the OpenSea marketplace being the one with the greatest impact within the ecosystem.

Likewise, competition between Ethereum and other Layer 1 alternatives, such as Solana and Toncoin, will be essential in 2024. While technological developments could also set the agenda, as was also marked by the Shanghai update of Ethereum or the launch of opBNB within the Binance ecosystem, according to what Binance Research itself includes in its report.

SocialFi and the path to the future

The SocialFi concept, which merges DeFi and social media, has gained momentum with projects like friend.tech generating over $25 million in protocol fees since its launch. Other notable projects in this space are Farcaster, Lens Protocol and Binance Square, anticipating significant changes in social interactions on Web3 in the coming years.

Bitcoin: The possible great protagonist of 2024

In addition to the points raised above, there is a latent potential regarding the approval of regulated spot Bitcoin ETFs in the United States which, during this year 2023, has marked significant progress in this area. In August, US courts ruled in favor of Grayscale in its dispute with the Securities and Exchange Commission (SEC) over the transformation of its Grayscale Bitcoin Trust (GBTC) into a BTC spot ETF.

This positive ruling has motivated other prominent players, such as BlackRock, Fidelity, and Invesco, to file their own BTC spot ETF applications in the subsequent months. The SEC is currently evaluating a total of 13 BTC spot ETF applications. Among these, the closest deadline is scheduled for January 2024, while the most distant extends until August.

It was recently learned that Barry Silbert resigned as president of Grayscale Investments, and this may bring more uncertainty within the market, because the situation occurs at a crucial time, just when the SEC is evaluating the applications of various companies to transform their Bitcoin Trust (GBTC) in a Bitcoin ETF. Expectations remain latent regarding what could happen in the first weeks of January 2024 due to the possible approval of an ETF.

A highly anticipated event also for next year is the imminent Bitcoin Halving, where the miners of the mother cryptocurrency find their incentive in the validation of transactions and the security of the Blockchain through two mechanisms: block rewards and commissions. per transaction. Traditionally, block rewards account for the majority of miners' income. These rewards are awarded for each new block mined, with an average frequency of 10 minutes, and are halved every 210,000 blocks, approximately every four years.

Given BTC's fixed maximum supply of 21,000,000 units, the halving of the reward to miners introduces increasing scarcity designed to raise its value over time, cementing the narrative of BTC as a " digital gold " or safe haven asset. At the beginning of the Bitcoin Blockchain development company  in 2009, block rewards started at 50 BTC. After subsequent halvings in 2012, 2016 and 2020, the current reward is 6.25 BTC per block. The next reward halving for miners is scheduled for April 2024, anticipating a block reward of 3,125 BTC.

Conclusions: A promising future

In the report presented by Binance, it is concluded that the last months of 2023 have marked a change of sentiment in the cryptocurrency industry. With new expectations, the entry of new participants and the resurgence of frenzy within the crypto ecosystem, it becomes crucial to closely monitor key indicators as we head towards 2024. The combination of technological developments, regulatory events and market dynamics promises a exciting year full of opportunities for cryptocurrency enthusiasts.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investments and commercial movements involve risks and it is the responsibility of each person to do their due research before making an investment decision.

[jayasuriyan]

Beginner's Guide to Cryptocurrencies

In the global financial ecosystem, the emergence of cryptocurrencies has been nothing short of revolutionary. Born from the ashes of the 2008 financial crisis, they have rapidly evolved into a multi-billion dollar industry that has disrupted traditional financial systems.

But how do cryptocurrencies work? In this article, we will delve into the intricate world of digital currencies, providing a comprehensive overview of their history, mechanics, and applications. In the end, you will better understand this innovative financial technology.

What are cryptocurrencies?

Cryptocurrencies, often referred to as "crypto", are digital currencies that use cryptography for security. Cryptocurrencies, in contrast to conventional money issued by governments and central banks, are decentralized and only exist digitally.This decentralization is a defining characteristic, meaning that they operate independently of a central authority, such as a government or financial institution.

Cryptocurrencies emerged at the beginning of the 21st century, with Bitcoin being the first and best-known example. Created by an anonymous entity or group known as Satoshi Nakamoto in 2009, Bitcoin introduced the concept of a decentralized digital currency based on blockchain development services. Since then, thousands more cryptocurrencies have been developed, each with its unique characteristics and purposes.

Cryptocurrency Basics

To understand how cryptocurrencies work, it is essential to understand the fundamental principles and building blocks that underpin them.

Decentralized technology: The hallmark of cryptocurrencies is their decentralized nature. Instead of relying on a central authority to regulate and validate transactions, they use a distributed ledger technology called blockchain. A blockchain is a chain of blocks, each of which contains a list of transactions. These transactions are recorded on a network of computers or nodes, which guarantees transparency and security.

Cryptographic security: Cryptocurrencies are based on cryptographic techniques to secure transactions and control the creation of new units. Public and private keys are used to authenticate and authorize transactions. Public keys are like email addresses, while private keys are secret codes that prove ownership of the associated cryptocurrency.

Consensus mechanisms: To maintain the integrity of the blockchain and validate transactions, cryptocurrencies employ consensus mechanisms. The most common mechanism is Proof of Work (PoW), in which miners solve complex mathematical puzzles to add new blocks to the blockchain. This process consumes a lot of computing power, so it is expensive and slow, but very secure. Other cryptocurrencies employ consensus techniques like Proof of Stake (PoS), which have different trade-offs in terms of security and the environment. What is the mechanism behind cryptocurrencies? Now let's examine how cryptocurrencies function. Blockchain: A cryptocurrency's blockchain is its central component.

Let's now see how cryptocurrencies work.

Blockchain: The heart of any cryptocurrency is its blockchain. A blockchain is a distributed ledger that records all transactions in a transparent and tamper-proof manner. New transactions are grouped into blocks, which are then linked into a chronological chain. This ensures that no one can tamper with past transactions, making the system secure and trustworthy.

Cryptocurrency transactions: When you want to send cryptocurrency to someone, you initiate a transaction by creating a digital signature with your private key to authorize it. This transaction is broadcast to the network and awaits confirmation. Using their computing power to solve complex mathematical puzzles, miners compete to validate and add their transaction to the blockchain. Once confirmed, the recipient's wallet is updated with the new cryptocurrency balance.

Transaction validation: Miners (for Proof of Work cryptocurrencies) and stakers (for Proof of Stake cryptocurrencies) play a critical role. They secure blockchain networks by validating transactions and adding them to the blockchain. Miners and stakers are rewarded with newly created cryptocurrencies (often called "block rewards") and transaction fees. This process not only maintains the blockchain, but also issues new units of cryptocurrency. The difference between miners and stakers is that the former require dedicated computing equipment to solve complex mathematical problems, while the latter require normal users to stake—stake—coins. Although the processes are different, the result (transaction validation) is the same.

Cryptocurrencies in practice: How are they used?

Cryptocurrencies are versatile and have a variety of real-world applications, including:

Digital Gold: Bitcoin, often referred to as “digital gold,” is a store of value and a hedge against economic uncertainty. Many investors buy and hold Bitcoin as a long-term investment.

Online Shopping: Some online retailers and businesses accept cryptocurrencies as payment for goods and services.

Remittances: Cryptocurrencies offer a cheaper and faster way to send money across international borders compared to traditional remittance services.

Smart Contracts: Some cryptocurrencies, such as Ethereum, support smart contracts, self-executing agreements with the contract terms written directly into the code. These contracts are automatically executed when the specified conditions are met.

Decentralized finance (DeFi): DeFi platforms, such as decentralized exchanges (DEX), offer various financial services, such as lending, borrowing, and trading, without the need for traditional intermediaries such as banks.

How are cryptocurrencies different from traditional money?

To appreciate the impact of cryptocurrencies, it is essential to compare them with traditional monetary systems.

Decentralization: Cryptocurrencies are decentralized, meaning that they are not controlled or issued by any central authority, while traditional currencies are issued by governments and regulated by central banks.

Transparency and security: Blockchain technology provides a high level of transparency and security in cryptocurrencies, making it difficult to falsify or manipulate transactions. In contrast, traditional money can be susceptible to fraud and counterfeiting.

Borderless: Cryptocurrencies can be used globally without the need for currency exchange, making cross-border transactions more efficient and cost-effective.

Anonymity: Although cryptocurrencies offer a certain degree of privacy, transactions are recorded on the blockchain, making them semi-anonymous. Traditional transactions are subject to greater regulatory scrutiny.

Volatility: Cryptocurrencies are known for their price volatility, with values ​​that can fluctuate significantly in a short period. Traditional currencies tend to be more stable.

Determining the value of cryptocurrencies

The value of cryptocurrencies depends on several factors:

Supply and demand: Like any asset, the price of a cryptocurrency is influenced by the dynamics of supply and demand. A limited supply, such as Bitcoin's 21 million coin cap, can drive up the value if demand is high.

Market Sentiment: Investor sentiment, news, and public perception can have a significant impact on cryptocurrency prices. Positive news can push prices up, while negative news can cause prices to fall.

Utility and adoption: The utility and adoption of a cryptocurrency for various applications, such as DeFi or smart contracts, can affect its value.

Speculation: Many investors purchase cryptocurrencies with the expectation that their value will increase over time, contributing to price fluctuations.

External factors: Regulatory changes, technological advances and macroeconomic events can influence cryptocurrency prices.

Risks and considerations in the cryptocurrency space

Although cryptocurrencies offer exciting opportunities, they carry inherent risks:

Volatility: The extreme volatility of cryptocurrency prices can cause significant gains or losses in a short time. It is essential to be prepared for this risk.

Security: Cryptocurrency wallets and exchanges can be vulnerable to hacking and theft. It is essential to store cryptocurrencies safely and use trusted exchanges.

Regulatory uncertainty: The regulatory landscape for cryptocurrencies varies from country to country and is continually evolving. Changes in regulations may affect the use and value of cryptocurrencies.

Scams and Frauds: The crypto space has seen its share of scams and fraudulent projects. Vigilance is necessary to avoid becoming a victim of these schemes.

Lack of consumer protection: Unlike traditional banking systems, cryptocurrency transactions are irreversible, meaning there are few avenues of recourse in case of disputes or errors.

Future perspectives and evolution of cryptocurrencies

The future of cryptocurrencies is the subject of expectation and much speculation:

Widespread adoption: As cryptocurrencies become accepted and integrated into the traditional financial system, their use could increase in everyday transactions.

Institutional investment: Institutional investors, including hedge funds and traditional financial institutions, are showing growing interest in cryptocurrencies, which could further legitimize the asset class.

Regulatory clarity: As governments establish clearer regulatory frameworks, it could reduce uncertainty and make it easier for businesses to incorporate cryptocurrencies into their operations.

Technological Advances: Ongoing technological innovations in the crypto space, such as scaling solutions and improved security, may address some of the current limitations.

Conclusions

Cryptocurrencies have emerged as a transformative force in the global financial landscape. They offer unique advantages, such as decentralization and security, but also carry risks such as volatility and regulatory uncertainty.

Understanding how cryptocurrencies work is the first step to making informed decisions about their use and investment. As the world of cryptocurrency continues to evolve, it is crucial to approach it with a cautious and informed mindset.

Whether you are an investor, user, or simply curious about the future of finance, the world of cryptocurrency is a fascinating journey that promises to reshape the way we think about money and transactions more…

[jayasuriyan]

Integration of AI and Blockchain: All You Need to Know

The convergence of AI and the metaverse

Interestingly, this convergence has its roots in the same hardware that powers it. GPUs, known for rendering rich virtual spaces, are the same workhorses that train AI models. Their parallel computing capabilities not only make them invaluable in AI development, but also in bringing the complex environments of the Metaverse to life. This synergy is evident in the rising value of GPU manufacturers like Nvidia, highlighting the intertwined growth of artificial intelligence and virtual reality technologies.

Looking ahead to 2024, the convergence of AI and the metaverse is shaping up to be a fundamental advance in our technological journey. We are about to witness how AI transforms the act of creation within the metaverse. This year, we predict that AI will evolve beyond its current capabilities, allowing creators to create expansive virtual worlds simply through the power of description. The metaverse will no longer require complex skills in 3D modeling and animation; instead, it will respond to the creative impulses of Human thought, which AI brings to life.

The trust architecture of tomorrow

The year 2023 was a crucible for blockchain, with the industry going through legal challenges and corporate upheavals. These tests, reminiscent of the growing pains of any technological breakthrough, heralded the maturation of blockchain. Amid this legal maelstrom, the essence of blockchain – the digitization of asset ownership – remained resolute and unscathed, continuing its march towards the technological revolution.

We envision blockchain merging into the fabric of the Internet, similar to the invisible but vital protocols that power our emails and instant messages. This convergence will make blockchain assets become a native dialect of the digital realm, essential and, most importantly, invisible to the user. Interacting with blockchain will be as simple as sending an email, with its hidden complexities and omnipresent efficiency and security. In this future, blockchain development services is not just a technology; it is a silent orchestrator of digital trust and ownership.

Synergies between virtual reality and the metaverse

In 2023, virtual reality (VR) has risen to become the next frontier in human-computer interaction, providing unprecedented bandwidth for digital communication and embodying the essence of presence. This leap forward has been driven by advances from major hardware manufacturers, with the launch of Meta Quest 3 and the long-awaited VR headsets from Apple and Nintendo. Every step in this area is not just about technological progress; It is about redefining our own perception and interaction with digital spheres.

Looking ahead to 2024, we are on the brink of a watershed moment in the spatial computing industry. The potential use case of experiencing events like the NBA Finals from the best seats in the stadium, all from the comfort of home, is set to capture the imagination of the masses. This experience, bridging the physical and digital worlds, will likely be a catalyst for widespread adoption among the early majority. The road ahead for virtual reality is long and full of potential, but the convergence of technologies such as artificial intelligence, blockchain and advanced hardware is setting the stage for a seismic shift.

The cultural and economic impact

In the narrative of our digital evolution, Generation Z emerges as the vanguard of a new cultural epoch. Born in a world where virtuality is as real as the air they breathe, these digital natives are the first to fully immerse themselves in the fruits of technological convergence. His initial, playful and experimental forays into the creation of memes and digital artifacts are nothing more than the prologue to a deeper and more significant change. With AI-powered tools and the metaverse at your fingertips, they don't just use technology; They are reshaping it, subjecting the digital universe to their imagination and whims.

We see these young minds not only embrace but master the art of creation within these new realms. They are the pioneers of a world where user-generated content is not just a hobby but a new economic frontier. In their hands, creativity and innovation become more than expression; They are the keys to unlocking new forms of value and influence. The power once held by a select few over coding and legal complexities is now democratized in the hands of these young creators, heralding a future where the digital realm is limited only by the imagination.

In 2024

As the year 2024 progresses, we find ourselves on the cusp of a transformative era in technology. The integration of AI, blockchain and virtual reality is creating a new digital landscape. This convergence is more than a mere fusion of technologies; It is a revolution in the way we interact with the digital realm. The advancement of AI is redefining creative possibilities in the metaverse, allowing environments to be shaped solely by thought. Blockchain evolves into a fundamental layer of digital trust, making asset ownership part of the fabric of the Internet. Virtual reality, on the brink of a breakthrough, will radically change our sensory experiences in digital spaces.

Fundamentally, this technological synergy is the playing field of Generation Z, who are not only users but active creators and modelers of these areas. Their commitment to these technologies is not just about leisure; It is the forging of a new economic and cultural landscape where imagination is the main currency.