Digital Gold: Earn Money on the Web

Means of payment

The World Food Program uses blockchain technology to provide refugees with food through local outlets and networks instead of directly distributing food or giving refugees cash to buy food. The idea belongs to Houman Haddad. Biometrics is used to identify recipients of food (iris scan). Savings in 2018 through the use of this technology in Jordan alone amounted to $150,000 per month. ⁵

In the middle of October 2018, the decentralized marketplace of real estate and land title registration, Propy, announced the first sale of real estate on the blockchain in Europe. The seller from Spain and the buyer from France made a deal to sell real estate in Seville, and the calculation was made in Ethereum cryptocurrency.

According to Natalya Karayaneva, CEO of Propy, the blockchain platform allows you to conclude an international real estate transaction in the form of an ordinary online transaction, which greatly simplifies the whole process. ⁹

And these are just a few examples. In fact, the blockchain covers more and more areas of our life every day. Many (and I among them) believe that Blockchain is an important technological breakthrough that should accelerate the fourth industrial revolution.

“Blockchain makes cryptocurrencies the inevitable future of money.”

Joseph Muscat, Prime Minister of Malta

Bitcoin

And now I will tell you about the grandfather of all cryptocurrencies – about Bitcoin.

The emergence of Bitcoin was simply inevitable. Given that the gold standard was abolished in 1971, the economy became less stable, more prone to inflation, because the government can print money at its discretion that is not backed by gold. Money is now not backed up by anything. Bitcoin is also not backed by anything, but at least it is not controlled by the government, and the issue of coins is foreseen (21 million coins).

Bitcoin is a peer-to-peer payment system that uses a unit of the same name to account for transactions and a data transfer protocol of the same name. That is, this is both a payment system and a means of payment (if you do not go into the legal nuances of different countries). To ensure the functioning and protection of the system, cryptographic methods are used. All information about transactions between system addresses is available in open form.

How to start use Bitcoins

The minimum transmitted value (the smallest fragmentation value) – 10

⁸ Bitcoin – was named Satoshi in honor of the creator Satoshi Nakamoto, although he used the word “cent” in such cases.

By the way, Satoshi Nakamoto is a pseudonym, and there is no evidence that the creator of Bitcoin is from Japan. His famous report titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” also called Bitcoin White Paper, was released on October 31, 2008.

Electronic payment between the two parties occurs without intermediaries and is irreversible – there is no mechanism for canceling the confirmed operation (including cases when the payment was sent to an erroneous or non-existent address, or when the transaction was signed by a private key that has become known to others). No one can block (arrest) funds, even temporarily, with the exception of the owner of the private key (or the person to whom he has become known) and with the exception of court orders (such precedents are already known). But the provided multi-signature technology allows you to attract a third party (arbitrator) and implement “reversible transactions.” ¹⁰ No one controls Bitcoin, currency is emitted through the work of millions of computers around the world using a program for calculating mathematical algorithms.

For Bitcoins, you can also buy anything on the Internet, like for dollars, euros or rubles, and it also trades on exchanges. The most important difference between Bitcoin and all other forms of money is decentralization. This currency is not printed by the central banks and does not work according to their rules. Banks can issue as much money as they like to cover their national debt, thereby devaluing their currency.

On the contrary, the emission of Bitcoins is possible only in digital form, and anyone can begin to mine Bitcoins at any time. Bitcoin mining occurs through the use of computer power in a distributed network. When sending Bitcoins, transactions are processed by the same network, turning Bitcoin into an independent digital payment system.

Benefits of Bitcoin:

1) Decentralization – the process of sharing power, finances, or effort without the intervention of a global governing body. In the blockchain technology, the decentralization of control is because there is no local server in the system, and all the miners and participants in the chain of transactions are equal.

Developers do not follow the operations in the blockchain, and transactions are confirmed by network users. The technology involves the distribution of computing power and data across the globe, and the information is repeatedly duplicated to prevent loss, and DDOS-attacks on such a system have zero or minimal effect. ¹¹

2) The ability to send directly to anyone at any time.

3) The amount sent is almost unlimited.

4) Low commissions.

5) Nobody can block your account.

6) The transaction system can not be deceived or destroyed. Each transaction is confirmed by several independent nodes, which makes it impossible to substitute data or bribe the verifiers.

7) Anonymity.

8) Bitcoin is not subject to inflation.

Classical system

Bitcoin nentwork

The use of Bitcoin and cryptocurrency in the world

Since October 2017, the Swiss University of Applied Sciences and Arts in Lucerne has been accepting Bitcoins. The government agency takes the cryptocurrency as a payment for student accounts via Bitcoin Suisse AG. The university itself does not work directly with digital currency – a brokerage firm will convert incoming payments into Swiss francs weekly. Also, the intermediary assumes all risks associated with exchange rate fluctuations. The University of Lucerne is not the first institution that accepts payment in Bitcoins. Earlier, a similar decision was made by the Royal College of New York and the University of Cumbria in the USA. ¹²

In April 2018, it became known that the University of São Paulo, the largest institution of higher education in the financial center of Brazil, is launching a course on cryptocurrency. The course is launched against the background of a growing coverage of the topic of cryptocurrencies by Brazilian universities. The Sao Paulo based charitable foundation (Fundacao Getulio Vargas) announced that it would be the world’s first master’s degree in cryptocurrencies. ¹³

On July 23, 2018, there was news that the South Korean company Samsung, which is one of the world leaders in the development and production of telecommunications equipment, household appliances, as well as audio and video devices, will sell its products to customers in Tallinn, Riga, Vilnius and Kaunas with cryptocurrency. As the Lithuanian cryptocurrency payments platform CopPay reported, Samsung’s branded outlets will accept payments in Bitcoins, Litecoins, Ethereum, XRP, Dash, NEM and Steem. In addition, in the near future, cryptocurrencies will be accepted as a settlement tool in Samsung online stores. Samsung has long been working with the cryptocurrency sector. In January 2018, they announced that they would start producing video cards for mining. In April, the company reported an annual increase in production profits of 58% in the first quarter of 2018, which was partly due to the demand for mining chips.

In addition, Samsung uses the blockchain to manage its global supply chain. According to a Bloomberg report published in April 2018, the electronics industry trusts this technology to ship goods worth tens of billions of dollars a year, which reduces transportation costs by 20%.

A survey showed that small business owners believe that within two years, cryptocurrency payments will become a reality in the mass market segment. In turn, a study by eToro and London’s Royal College indicates that cryptocurrencies can become the accepted means of payment in the next ten years. ¹⁴

In early September 2018, the Japanese real estate company Ruden Holdings announced the results of its own experiment, in which it tested its recently created “platform for the real payments in cryptocurrency.” The experiment began with the seller indicating the property for sale, and the buyer – the application for the purchase. After, the buyer filled out an offer to purchase the property, which was confirmed by the seller.

“Then the buyer sent the virtual currency (Bitcoin) to the virtual currency account of Ruden. As soon as the Ruden (system) confirms the transfer of the virtual currency, we execute the contract and [convert] the virtual currency to Japanese yen. In addition, the notarized purchase and sale agreement is immediately transferred to the buyer and seller,” – told in Ruden Holdings. ¹⁵

Back in 2013, the popular British newspaper The Guardian called Berlin “the Bitcoin-capital of Europe.” Since then, Fin-tech has continued to expand in a European city. Today, in Berlin, you can buy real estate for cryptocurrency, book a trip or drink and eat in a large number of trendy bars. You can even get an education for cryptocurrency. In December 2016, the European School of Management and Technology (ESMT) was one of the first to start accepting payments for its courses in various cryptocurrencies. They currently accept Bitcoin, Ether, Litecoin and Dash. The Financial Director of ESMT, Georg Garlichs, explained to journalists why the school started accepting cryptocurrencies: “Like SMS, digital currency allows you to make international money transfers within a few minutes without a bank. ESMT is an innovative and future-oriented business school.”

Bitcoin payments have been popular in Berlin for some time. Leuchtstoff Kaffeebar is one of those cafes where you can drink a cup of invigorating espresso and pay for it with cryptocurrency. For owners such as Niels Göttsch, digital currencies are exciting innovations and no additional bank fees: “There are no political solutions. The algorithm is completely transparent for everyone,” he admires with cryptocurrencies. What to say about the IT sector, where cryptocurrency turnover has become a matter of course. However, despite the European tolerance for cryptocurrency, Europe has not become the market leader. Today, the lion’s share of all operations with Bitcoin and other cryptocurrencies is in Asia, which sets the tone for the market. ¹⁶

However, it is good that recently Bitcoin almost got the status of a monetary unit in Germany. This is how the local regulator of the German Federal Financial Supervisory Authority (BaFin) interpreted cryptocurrency. However, the court quickly “corrected” the situation and noted that the authorities of the country cannot interpret the laws as they please. ¹¹⁰

In the USA, it has recently become possible to purchase coffee at Starbucks for Bitcoin.

All these examples are also just the tip of the iceberg. In fact, Bitcoin is gaining momentum every day. It is believed that the most loyal to Bitcoin countries are the USA, Canada, Germany, the Netherlands and China. There is information that payments are made in Bitcoin by the computer corporation Microsoft, the developers and manufacturers of computer systems DELL, the ticket search service Expedia, and the airline airBaltic. ¹⁷

According to cryptocompare.com, Bitcoin’s market capitalization is more than $110 billion. According to coin. dance, Bitcoin is allowed in 110 countries, and its price has increased by + $6,565.05 or +132,895.75% over the past 7 years. And according to the report of the company Diar, venture investments in the blockchain and cryptocurrency increased by 280% – investments almost tripled in the first three quarters of 2018.

Violence against cryptocurrency owners

Unfortunately, there has also been violence in the field of cryptocurrency. After all, cryptocurrency owners are owners of big money. And where there is big money – there will be swindlers and criminals.

So, on July 9, 2018, Bitcoin Core developer Jameson Lopp launched a repository (github.com/jlopp/physical-Bitcoin-attacks) in which he collected and documented cases of physical violence against Bitcoin owners from both criminal elements and law enforcement agencies. The resource is available on GitHub and currently holds more than 40 different incidents that took place since December 2014, when police special forces broke into Hel Finney’s house in Santa Barbara. He is a famous American programmer and one of the first Bitcoin users; he received the first Bitcoin transaction of 10 coins from the creator of the project Satoshi Nakamoto.

The list also included incidents that occurred throughout the world, including cases of extortion of cryptocurrency under the threat of death, theft from Bitcoin ATMs and theft of mining equipment.

The list includes the abduction of the leading analyst of the EXMO cryptocurrency exchange, Pavel Lerner in Kiev at the end of 2017, the robbery of the founder of the “Kryptach” YouTube channel Pavel Nyashin (Makushin), who unfortunately was found hanged, stealing $100,000 in Bitcoins from Russian blogger Maxim Lotsok on the island of Phuket in Thailand, as well as the theft of 300 BTC from one of the creators of cryptocurrency Prizm Yuri Mayorov in April in Moscow.

As Jameson Lopp (one of the most well-known developers of Bitcoin), whose home in North Carolina in October 2017 was nearly taken by assault by US special forces, notes, 23 of the listed incidents involved physical violence. And only in one case could the victim of the criminals defend himself successfully – this is about localbitcoins trader Ryan Rice from Miami, who they tried to rob during a deal to sell Bitcoins.