Plasma is a proposed framework for incentivized and enforced execution of smart contracts which is scalable to a significant amount of state updates per second (potentially billions) enabling the blockchain to be able to represent a significant amount of decentralized financial applications worldwide. These smart contracts are incentivized to continue operation autonomously via network transaction fees, which is ultimately reliant upon the underlying blockchain (e.g. Ethereum) to enforce transactional state transitions.

Blockchains are consensus-driven. A large number of computers are connected to the network, and to reduce the ability for an attacker to maliciously add transactions on the network, those adding to the blockchain must compete to solve a mathematical proof. The results are shared with all other computers on the network. The computers, or nodes, connected to this network must agree on the solution, hence the term "consensus."
Blockstream has also released an “Alpha” sidechain with all of those features up and running except the last, coupled to the Bitcoin testnet. (Used for testing Bitcoin software without putting real value at risk.) In the absence of the Bitcoin protocol change that will cryptographically secure the programmatic transfer of value between Bitcoin and sidechains, they’re cooperating with several external organizations to perform and validate those transfers. If and when that protocol change happens, though, pegged sidechains will be as permissionless, and as decentralized, as Bitcoin itself.
In early January, the company announced that its exe50/50 decentralized application (DApp) was posted to TestNet, which the release states following the test phase, coding used in the its development will be made public on the Peerplays blockchain network. On May 1, the company announced the development of a blockchain sidechain that will allow bitcoin users direct access to eXeBlock’s decentralized applications being developed by third party developers.
MGT Capital is currently acquiring and adding to its diverse portfolio of cybersecurity technologies, but is also in the business of bitcoin mining. According to its website, MGT is in a strong position to become the “preeminent” crypto-mining enterprise in the US. As it currently stands, MGT Capital has a number of locations in central Washington state.
Por ello, con este escenario sobre la mesa y con el objetivo de aunar esfuerzos, algunos se han preguntado: ¿Sería posible crear blockchains que sean utilizadas para casos de usos concretos, pero conectadas en todo momento a la de Bitcoin? ¿Podemos crear piezas de software que desde una blockchain se pueda saltar a otra de manera transparente, segura y descentralizada? Esto generaría, para que te hagas una imagen mental, algo así como las ruedas dentadas interconectadas de un motor, cada rueda una blockchain, todas trabajando juntas.
Other individuals that have been suspected to be Satoshi Nakamoto include Nick Szabo, a “reclusive American man of Hungarian descent” and a brilliant coder; Dorian Nakamoto, a Japanese man living in California whose birth name is Satoshi Nakamoto; and Hal Finney, the first person other than Satoshi to work on the bitcoin software. Interestingly, Hal Finney is a next door neighbor of Dorian Nakamoto in California. Some suspect he ghost-wrote his neighbor’s forum posts, while others suspect he used his neighbor’s identity to throw off pursuers.

Other manifestations of the cost of trust are felt not in what we do but in what we can’t do. Two billion people are denied bank accounts, which locks them out of the global economy because banks don’t trust the records of their assets and identities. Meanwhile, the internet of things, which it’s hoped will have billions of interacting autonomous devices forging new efficiencies, won’t be possible if gadget-to-gadget microtransactions require the prohibitively expensive intermediation of centrally controlled ledgers. There are many other examples of how this problem limits innovation.

Blockchain isn't a household buzzword, like the cloud or the Internet of Things. It's not an in-your-face innovation you can see and touch as easily as a smartphone or a package from Amazon. But in a world where anyone can edit a Wikipedia entry, blockchain is the answer to a question we've been asking since the dawn of the internet age: How can we collectively trust what happens online?
"People have forgotten how powerful it is not to have to worry about what email app you use. When I email you, it doesn't matter if you're using Gmail or Outlook or Yahoo—you just give me your email address and go. Now think about sending money today. If I want to send you $20, we're going to play a game of 20 questions. Do you have PayPal? How about Venmo?" said Forde.
Many of the startups named here are in our view not so strongly rooted in the market that they can be seen as fully established. There are still few figures available for the exchange-listed companies, so investment involves a high degree of risk – probably even higher than for an investment in one of the top ten cryptocurrency firms. That is why we believe it makes more sense right now – alongside investments in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Zcash or Monero – to acquire shares in established companies, by which we mean Apple, IBM or Google, for example. These firms are all involved in the blockchain sector and are also pursuing developments such as artificial intelligence (AI), Internet of Things (IoT), cloud computing and cybersecurity.
As you can see, several of these real-world demands for the evolution of the initial Bitcoin implementation are still highly relevant. Trade-offs between scalability and decentralization are demonstrated with Ethereum’s focus on decentralization first and resulting complexities in developing scalable solutions. The increased emphasis on smart contract functionality, pegging real-world assets to blockchains, and experimentation of altcoins that are currently ongoing also represent the forward-thinking ideas outlined in the paper.
Now imagine lots of transactions are taking place across the world. These individual transactions are grouped together into a block, organized by strict cryptographic rules. The block is sent out to the bitcoin network, which are made up of people running high-powered computers. These computers compete to validate the transactions by trying to solve complex mathematical puzzles.
You can't talk about the future of blockchain without explaining the role smart contracts will play. If the world is going to run on blockchain, much of it will rely on smart contracts to execute the data exchanges and program in rules to govern how each code-triggered agreement works. Smart contracts are also a flexible mechanism that can serve as the blockchain middleman for all manner of agreements and data exchanges, down to something as simple as verifying someone's identity to ensure they're of legal drinking age.
Yet the industry the Deloitte report identifies with the most aggressive deployment plans is healthcare and life sciences: 35 percent of respondents in that industry say their companies plan to deploy blockchain in production within the next calendar year. When you look at some of the blockchain healthcare initiatives already out there, that stat starts to make a lot of sense.
More recently, aside from working on its own blockchain technology, the company has partnered with Ripple -- yes, the same Ripple that's doubled in value over the past week. In September, SBI announced that it'd be testing Ripple's cross-border blockchain technology as a means to transfer money between Japanese and South Korean banks. If this sounds familiar, it's because Ripple also landed a partnership to send cross-border payments on American Express's FX International Payment network to Banco Santander accounts in the U.K. this past November. 

Side chains have two main advantages. Their first advantage they have is that they are permanent. You do not have to create a new sidechain every time you need to use one. Once a side chain is built, it is maintained and can be used by anyone doing a specified task off the main chain. The other advantage of sidechains is that they allow interaction between different cryptocurrencies. Developers get the opportunity to test software upgrades as well as beta coin releases before they are released on the main chain.
With this setup, there is still a major security hole that could be exploited to recall bitcoins after spending them. Transactions are passed from node to node within the network, so the order in which two transactions reach each node can be different. An attacker could send a transaction, wait for the counterpart to ship a product, and then send a reverse transaction back to his own account. In this case, some nodes could receive the second transaction before the first and therefore consider the initial payment transaction invalid, as the transaction inputs would be marked as already spent. How do you know which transaction has been requested first? It’s not secure to order the transactions by timestamp because it could easily be counterfeit. Therefore, there is no way to tell if a transaction happened before another, and this opens up the potential for fraud.

Zcash: As cryptocurrencies go, Zcash is the most exciting one this side of Bitcoin. Zcash uses something called zero-knowledge proofs to create truly anonymous digital transactions. While it's mined on a public blockchain just like Bitcoin, Zcash provides a fully anonymous cryptographic key in which no private information needs to be exchanged. Next to Bitcoin, it currently has the highest price of any cryptocurrency.


A partir de este momento, se podrán intercambiar y mover estas monedas para hacer uso del potencial de esa sidechain siguiendo las directrices y protocolo que ésta tenga estipulado. Por ejemplo, quizá la velocidad de creación de los bloques es más rápida en esta o quizá los scripts de transacción en esa cadena son turing completos (disponen de un poder de cómputo equivalente a la máquina universal de Turing).
The thing about blockchain as a technology is it’s a paradigm shift. It has the potential to change the way we pass information much like the Internet connected computers and then mobile put computers on our person 24/7. Those are heady concepts, and blockchain adds the potential of transfer of something of value between two computers on two persons in an efficient and secure manner.

This type of blockchains can be considered a middle-ground for companies that are interested in the blockchain technology in general but are not comfortable with a level of control offered by public networks. Typically, they seek to incorporate blockchain into their accounting and record-keeping procedures without sacrificing autonomy and running the risk of exposing sensitive data to the public internet.


Sidechains interactuando con blockchain. Blockstream explica en su paper como, a las sidechains, se les añade una nueva pieza llamada two-way peg. Two-way peg es “el conector” entre ambas cadenas y se encarga de hacer la “magia” para que los bitcoins “salten” a la otra cadena. Juntando ambas cosas obtenemos las pegged sidechain: cadenas laterales conectadas en todo momento. En la imagen puedes observar como, incluso, las sidechain pueden interactuar entre ellas. ¿Llegaremos a un escenario de blockchains interactuando con aspecto fractal?
TIO Networks delivers cloud-based services that customers can use to immediately pay invoices across multiple payment channels. It is positioned primarily for LMI (low to moderate income) users in underserved banking markets, and has currently completed the Softgate Systems integration phase. This has resulted in three new internal business units: Biller and Agent Solutions (process payments), Telecom Solutions (service provider), and Consumer Financial Solutions (B2C).

Bitcoin está demostrando un potencial enorme, y desarrolladores de todo el mundo quieren llevar esta tecnología aún más lejos, por ejemplo con los smart contracts turing completo o las llamadas smart property. El problema es que Bitcoin tiene un lenguaje de programación deliberadamente limitado. Además sus transacciones se confirman relativamente despacio, cada 10 minutos. Y ya por último y muy importante, su cadena de bloques está saturándose de transacciones debido a la creciente fama de Bitcoin.
The Linux Foundation’s Hyperledger launched in 2015, with notable early members including IBM, Intel, and Wells Fargo. Digital Asset (a private blockchain) and Blockstream (a bitcoin-focused engineering outfit) have since contributed codebases to Hyperledger, implying continued cooperation between private blockchains, public blockchains, and consortia.
Blockchain promises to solve this problem. The technology at the heart of bitcoin and other virtual currencies, blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. The ledger itself can also be programmed to trigger transactions automatically. (See the sidebar “How Blockchain Works.”)
Other individuals that have been suspected to be Satoshi Nakamoto include Nick Szabo, a “reclusive American man of Hungarian descent” and a brilliant coder; Dorian Nakamoto, a Japanese man living in California whose birth name is Satoshi Nakamoto; and Hal Finney, the first person other than Satoshi to work on the bitcoin software. Interestingly, Hal Finney is a next door neighbor of Dorian Nakamoto in California. Some suspect he ghost-wrote his neighbor’s forum posts, while others suspect he used his neighbor’s identity to throw off pursuers.
TIO Networks delivers cloud-based services that customers can use to immediately pay invoices across multiple payment channels. It is positioned primarily for LMI (low to moderate income) users in underserved banking markets, and has currently completed the Softgate Systems integration phase. This has resulted in three new internal business units: Biller and Agent Solutions (process payments), Telecom Solutions (service provider), and Consumer Financial Solutions (B2C).

Blockchain is still in its infancy. Before we see widespread adoption on the scale the technology is capable of, a lot needs to happen. We must have buy-in from government (which in the U.S. means working state-by-state on policies and legislation). The industry has to clear a labyrinth of legal and regulatory hurdles before blockchain can power better banking, identity, records, or anything else requiring official documentation that now runs on legacy government systems or even (still) on paper.
Anyone can access the bitcoin network via an anonymous connection (for example, the TOR network or a VPN network), and submit or receive transactions revealing nothing more than his public key. However if someone uses the same public key over and over, it’s possible to connect all the transactions to the same owner. The bitcoin network allows you to generate as many wallets as you like, each with its own private and public keys. This allows you to receive payments on different wallets, and there is no way for anyone to know that you own all these wallets’ private keys, unless you send all the received bitcoins to a single wallet.
Open blockchains are more user-friendly than some traditional ownership records, which, while open to the public, still require physical access to view. Because all early blockchains were permissionless, controversy has arisen over the blockchain definition. An issue in this ongoing debate is whether a private system with verifiers tasked and authorized (permissioned) by a central authority should be considered a blockchain.[36][37][38][39][40] Proponents of permissioned or private chains argue that the term "blockchain" may be applied to any data structure that batches data into time-stamped blocks. These blockchains serve as a distributed version of multiversion concurrency control (MVCC) in databases.[41] Just as MVCC prevents two transactions from concurrently modifying a single object in a database, blockchains prevent two transactions from spending the same single output in a blockchain.[42]:30–31 Opponents say that permissioned systems resemble traditional corporate databases, not supporting decentralized data verification, and that such systems are not hardened against operator tampering and revision.[36][38] Nikolai Hampton of Computerworld said that "many in-house blockchain solutions will be nothing more than cumbersome databases," and "without a clear security model, proprietary blockchains should be eyed with suspicion."[9][43]
Before heading further, it’s important to understand, why people don’t want to invest in cryptocurrency? The answer is simple; the skeptics believe that digital currency is not here for long. It’s like a bubble which will soon burst. Such people do not trust digital currency for long-term returns. But, this, surely doesn’t mean that they don’t believe in the Blockchain. It is a platform which makes cryptocurrency works. Similarly, Blockchain platform can be used for various other aspects and thus arise another question, where to invest in Blockchain other than cryptocurrency?
There are promising works in sidechains like there can be transactions at higher speed and volume. For example micropayments can be done directly with minimal fee by using Lightning Network side chain. You won't have to wait for 10 minutes for miners to create a block. Or we can have privacy in our transactions by Zerocash side chain. If you want privacy, you send your bitcoin to sidechain and use Zerocash protocol for sending bitcoin to your recipient. This protocol makes your transaction not to be seen in the transaction history, at the same time it won't damage the integrity and security of the Bitcoin. If you use Zerocash protocol in your sidechain, you cannot be tracked anymore. By the way, test results say that its performance is very poor now, but I believe it will be better in the near future.
The good thing about sidechains is that they are independent of their main chain. Sidechains take care of their own security. Problems occurring on the sidechain can, therefore, be controlled without affecting the main chain. Likewise, a security problem on the main chain does not affect the sidechain although the value of the peg is greatly reduced.
Yes, there are even penny stocks for cryptocurrency. While Bitcoin is definitely the most well-known digital currency, it is certainly not the only option. Other types of digital currency include Litecoin and Altcoins. Over the last few years, some alternative digital currencies were developed in an attempt to compete with Bitcoin, but many others were designed specifically to fill needs not met by Bitcoin. For instance, some cryptocurrencies have been developed for the purposes of enabling digital asset registry, providing increased privacy, allowing escrow services, and more. Bitcoin penny stocks like Bitcoin Shop Inc, Global Future City Holding, and American Green, Inc. offer Bitcoin penny stock investment opportunities. (For more see: Bitcoin Vs. Litecoin: What's the difference?)
The cryptocurrency market has experienced its fourth worst correction in the past nine years, experiencing a 80 percent drop in valuation within the past nine months. Yet, the vast majority of ICO and blockchain projects have held most of their holdings in Ethereum and Bitcoin throughout the bear market and the ICO market still remains active to this day.
The potential promise of overturning this entrenched, centralized system is an important factor behind the gold-rush-like scene in the crypto-token market, with its soaring yet volatile prices. No doubt many—perhaps most—investors are merely hoping to get rich quick and give little thought to why the technology matters. But manias like this, as irrational as they become, don’t spring out of nowhere. As with the arrival of past transformative platform technologies—railroads, for example, or electricity—rampant speculation is almost inevitable. That’s because when a big new idea comes along, investors have no framework for estimating how much value it will create or destroy, or for deciding which enterprises will win or lose.

Third option is to write your own blockchain protocol according to your needs. You will be able to answer all your what if questions if you design it by yourself. Ripple, Hyperledger projects (Fabric, Burrow, Indy), Corda, Multichain and most flexible and popular one Ethereum can be examples of that option. That option is the most costly and risky one. You have to invest a lot, and after you create your blockchain, you have to find people & companies to use it. Also you need to attract community of developers to upgrade, enhance your blockchain for coming requirements in the future. Above blockchains are the ones I remember immediately, also there are others.


Not sure which investment method is right for your risk appetite? If you want to keep risk low, the best option is to invest in stocks issued by one of the larger financial services companies currently experimenting with the potential of blockchain technology for improving services. For investors who are able to tolerate a higher degree of risk in exchange for a greater return, investing in one of the pure blockchain technology investment opportunities could deliver the right combination of risk versus return.
Bitcoin blockchain design has been done for a specific purpose, and this is a money (crypto currency) transfer. But what will we do, if we want to change or add some functions of the bitcoin blockchain? What if we want to transfer other assets rather than money, what if we want to do transactions automatically when pre-determined events occurred. Or what if we don't want other people see our transactions, or track our transactions' history. You can ask countless of what if questions and every answer to these questions drive you to a different blockchain or configurations
If a message is encrypted with a specific public key, only the owner of the paired private key can decrypt and read the message. The reverse is also true: If you encrypt a message with your private key, only the paired public key can decrypt it. When David wants to send bitcoins, he needs to broadcast a message encrypted with the private key of his wallet. As David is the only one who knows the private key necessary to unlock his wallet, he is the only one who can spend his bitcoins. Each node in the network can cross-check that the transaction request is coming from David by decrypting the message with the public key of his wallet.
A run-up in cryptocurrency prices this year has created paper gains for investors, many of whom have looked to diversify into ICOs. More available capital has also contributed to an increasing number of blockchain entrepreneurs opting to raise funds via ICOs as opposed to traditional equity financing, in turn fostering higher demand for cryptocurrencies broadly, and so on.
The potential promise of overturning this entrenched, centralized system is an important factor behind the gold-rush-like scene in the crypto-token market, with its soaring yet volatile prices. No doubt many—perhaps most—investors are merely hoping to get rich quick and give little thought to why the technology matters. But manias like this, as irrational as they become, don’t spring out of nowhere. As with the arrival of past transformative platform technologies—railroads, for example, or electricity—rampant speculation is almost inevitable. That’s because when a big new idea comes along, investors have no framework for estimating how much value it will create or destroy, or for deciding which enterprises will win or lose.
In a blockchain system, the ledger is replicated in a large number of identical databases, each hosted and maintained by an interested party. When changes are entered in one copy, all the other copies are simultaneously updated. So as transactions occur, records of the value and assets exchanged are permanently entered in all ledgers. There is no need for third-party intermediaries to verify or transfer ownership. If a stock transaction took place on a blockchain-based system, it would be settled within seconds, securely and verifiably. (The infamous hacks that have hit bitcoin exchanges exposed weaknesses not in the blockchain itself but in separate systems linked to parties using the blockchain.)
At the same time, dozens of startups are using the technology for everything from global payments to music sharing, from tracking diamond sales to the legal marijuana industry. That's why blockchain's potential is so vast: When it comes to digital assets and transactions, you can put absolutely anything on a blockchain. A host of economic, legal, regulatory, and technological hurdles must be scaled before we see widespread adoption of blockchain technology, but first movers are making incredible strides. Within the next handful of years, large swaths of your digital life may begin to run atop a blockchain foundation—and you may not even realize it.
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