Blockchain and the internet of value

Blockchain technology is a disruptive phenomenon and the world has not even begun to scratch the surface of the unprecedented paradigm shift that it will engender. Bitcoin, one of the interesting applications of blockchain application is simply a daring gamble on the part of Satoshi Nakamato, but the world will never go back to be the same. Before the development of cryptocurrencies, there was no way to transmit value from one person to another without using the instrumentality and support of third parties. With the introduction of Bitcoin, people caught on to the revolutionary concept of instantaneous peer-to-peer transfer of value. The Internet and the information highway that it powers is superb; yet, the internet remains largely limited in its ability to facilitate the transfer of value.

We are searching data for your request:

Databases of online projects:
Data from exhibitions and seminars:
Data from registers:
Wait the end of the search in all databases.
Upon completion, a link will appear to access the found materials.

WATCH RELATED VIDEO: Don Tapscott: Blockchain is introducing the internet of value

Blockchain - Internet of Value Exchange

Open access peer-reviewed chapter. High-tech enables payment evolution and global competition. The ambiguities surrounding of the digital currency still leave enough space for the analysis of its unreserved acceptance, trust and anticipation, which are the main driver for the spread of the network. Banks should carefully consider the technology underlying these cryptocurrencies as a potential generic new way of transferring ownership of the value over the long term.

The chapter provides an analysis of the use of cryptocurrencies in general, especially Bitcoin as the technology adoption in the presence of network externalities. Further, the chapter explores financial privacy which is very sensitive issue in using digital currency or cryptocurrency and discuss about private choices versus political rules. The research has shown that the future of cryptocurrencies can be bright if some institutional-formal conditions are met due to the fact that success evolution of e-money requires building safety payments through three criteria—standardization, compatibility and innovation.

Electronic money is not a new phenomenon. Trade over the Internet has increased the use of new technologies, thereby increasing the demand for new electronic payment methods. What really is new is electronic payment in retail and use of the Internet as new monetary market. Today, money becomes ready information on the microprocessor or in the database. Without a doubt, the purpose of such an instrument is to improve the efficiency of the traditional payment method.

At this moment, there are still no clear standards in the Blockchain mechanism and therefore we do not know the boundaries, so participants can easily communicate without the presence of a regulator. But still the ambiguities surrounding the use of the digital currency leave enough space for the analysis of its unreserved acceptance, trust and anticipation, which are the main driver for the spread of the network.

More precisely, the spread of the network requires interdependence of demand, which means the Network, must reach the minimum required volume before it reaches a balance. This chapter underlines the technology adoption in the presence of network externalities. Payment innovations that involve the creation of a network between the manufacturer and the consumer are product that inevitably involves network externalities that must touch the critical mass of the user before it starts to use it successfully.

Network externalities exist due to the average consumer benefits from such an instrument, only if other consumers and traders use the same payment instrument. Further, the chapter explores financial privacy which is very sensitive issue in using digital currency or cryptocurrency. The analysis explores what are the private choices versus political rules. Success evolution of e-money requires building safety payments through three criteria—standardization, compatibility and innovation.

The diffusion that digital currency brings in the modern era expands the antitrust issues related to network externalities and global competition between most explored world currencies. This is the reason to include a review of social costs and benefits, as possible risks of using digital currency.

These mean that in order to remain compatible with each other, all users should use software that meets the same rules. Therefore, all users and developers have a strong incentive to protect this consensus and set up a regulator. At the end, the chapter examines the question—are there prospects of taking hand in hand the technology revolution and monetary evolution without risks in the real world?!

The online trade increased the use of new technologies, and thus increased the demand for new electronic payment methods. This began especially in the mids with the information revolution, the decline in computer prices and the networking of the same. This term occurs as a result of the electronic payment in retail and use of the Internet as a new monetary market. Due to the information revolution, a new electronic payment method has been introduced, known as electronic cash, e-bag, e-currency, digital currency, digital money or digital cash.

Bitcoin is a digital currency whose value varies according to the worldwide customer acceptance. This is primarily due to the fact that, unlike the standard currencies we use, such as the dollar or the euro, which are regulated by central banks, for Bitcoin there is no regulation. For verification of transactions, it is necessary to have specific hardware and software that users can set up and after a certain number of transactions they receive a proportion of Bitcoin.

In this way, it is also performed an additional commissioning of this digital currency. From the aspect of the development of e-payment method, digital currency is not physically printed by the Central Bank. For now, digital currency is considered with its own rules of the game. In the literature, all those who support the use of Bitcoin underscore the characteristic as a currency that does not cause financial crises.

Namely, the view is that banks can print more money to cover their national debt, thus devaluing their currencies, Bitcoin does not function in such a way. Electronic payment method exists from the s, i. EFT implies the application of computer and telecommunication technology in payment.

This method was used by banks and other financial institutions to exchange and transfer a large amount of money on a national and international level. The basis for the operation of EFT is that the money moves through a network as a substitute for cash or checks to execute a transaction. In this way, the time for paying should be shortened and the transaction costs reduced. EFT is considered as first degree in the electronization of transactions. In the early s, thanks to the development of network technology, the costs of telecommunications and data processing were reduced, and electronic payments became more useful with the appearance of credit and debit cards, which for several years after their appearance became the most popular electronic small transaction tool.

Also, the development of encryption has played a major role in successful card payments. This innovation is considered as a second degree in the electronization of transactions. The growth and acceptance of card payments had negative consequences for the traditional way of payment.

Many countries have made a move from the use of paper instruments, such as cash and checks, to the use of electronic instruments. For the first time in many countries, the number of checks payments has been reduced.

Namely, checks as a very popular payment instrument loose the market role, thereby reducing their use [ 3 ]. In classical trade payments require at least one buyer and one seller, both having to have accounts in banks that are connected through clearing houses. Payments with traditional instruments such as checks require intervention of a financial intermediary like bank. Payment with e-money is similar to the traditional scheme—there are two parties—one or two banks.

However, the whole process becomes more efficient and easier. The transaction does not require any code and cannot exceed the previously defined amount. If the amount that is on the chip is fully spent, the card can be automatically refilled at the merchant, without charging any fees, thanks to the special POS mechanism [ 4 ]. Once the chip is full, the user does not need to require an ATM or an exact amount of cash. Additionally, the problem of stealing or losing money is reduced to a minimum.

An e-money transaction does not require an intermediary at present because the money expressed in units called bits is electronically transferred from the buyer to the seller. Payment with e-money reduces transaction costs, and time is shortened compared to other forms of payment. Humphrey and colleagues estimate that the cost of using electronic money amounts to one third to half of the cost of paying paper money.

From the era of barter economy, metal and coins to gold and silver, continuing to the modern monetary systems and checks, and ending with the latest developments in the global currency, such as the introduction of cryptocurrency like Bitcoin, have passed centuries.

Each type of money plays a crucial role in transactional activities in some period of time. As human society and markets developed in particular, there was a need for more sophisticated instruments for the exchange of goods. In this regard, the introduction of cryptocurrency revolutionized the international payment system in a size that only a few years ago was unimaginable.

The cryptocurrency is a digital or virtual currency that uses cryptography for security. Cryptocurrency is hard to forge because of this security feature. The determining characteristic of cryptocurrency, and probably the most attractive, is its organic nature as the fact that it is not issued by any central authority.

Cryptocurrencies have their own advantages and disadvantages. The main benefits of using cryptocurrencies are that they transfer the funds more easily between two parties in the transaction [ 5 ].

These transactions are facilitated through the use of public and private keys for security purposes. These fund transfers are carried out with minimal processing costs, allowing users to avoid the large fees for online transactions charged by most banks.

There are two reasons for the emergence of electronic money and digital currencies. Today e-money is the last stage of this development and represents an additional degree of institutional change [ 8 ]. Their main role is to support online e-commerce, enable transactions, reduce their costs, or replace the payment of money and coins in retail.

The second reason for the emergence of e-money is the information revolution, which is characterized by the integration of electronic information processing and telecommunication technologies, which reduces the geographical differences by means of which information can be transmitted to the whole world. The information revolution has changed the financial sector, making payment modes more secure and more efficient, giving an additional reason for the emergence of new monetary innovations [ 9 ].

Unlike the information revolution, the emergence of e-money is a new way of processing information for transferring purchasing power. Many financial innovations are not a new form of money, but a different way of using existing money in transactions [ 10 ]. Regardless of the consequences of the mentioned technological development, the nature of the money is still identical i. The nature of the money will never change, so the money will remain only an intermediary in the exchange of goods and services.

It is considered that e-money is the most important achievement that transfers the predetermined monetary value so it can be used for more transactions of lesser value. It is a higher degree of technological development compared to magnetic tape cards.

Also, the e-pouch is more secure, which can reduce deception because cards with a chip can be more difficult to abuse than magnetic tape cards. Although cash is a quick and efficient payment method, the disadvantages of its use are numerous. Keeping cash is followed with many costs, including fraud, money loss, depositing, as well as the costs associated with managing money in financial institutions. The purpose of e-money is replacing the cash in transactions of small values, thus avoiding its shortcomings, for example French experience with Moneo.

Moneo is designed to reduce the cost of keeping cash and purchasing power to be temporarily transferred in a more efficient manner. This structure should be applied to various retail transactions of lesser value in order to eventually become a substitute for cash.

Moneo offers great advantages for consumers and retailers. Benefits for consumers are: greater transaction speed and potential benefit in the form of a discount on future purchases. Consumers do not have to have an exact amount of cash each time. There will be many mistakes in cash recovery. The owners of the Moneo card should carry fewer bank cards, especially if the features of debit and credit cards are included, and thus they would feel more secure [ 12 ]. Traders would receive cash before sending material goods or services, loyalty to customers would increase, the process of payment at the place of purchase would be speeded up, thereby reducing the processing costs of the transaction itself.

If the benefit of using Moneo cards would be greater than the cost, retailers could pay to customers to use such a card [ 11 ]. Namely, debit and credit cards are not as effective a payment method for low value transactions as transaction-related costs become higher for retailers and buyers, and e-money can be used with much lower costs.

Paying for e-money is followed by much lower costs compared to other payment methods, primarily credit and debit cards.

The “Internet of Value”: 8 Top Sectors Being Transformed by Blockchain

Created by the mysterious hacker known as Satoshi Nakamoto, the blockchain technology — the distributed ledger technology that underlies the Bitcoin virtual currency — Blockchain has the potential to upend industries from finance to real estate to entertainment. In the simplest terms, the blockchain transfers value from one party to another over the Internet. That could be money, a share of stock, a property deed, a digital royalty—even a vote cast in an election. Today, such transactions often pass through multiple intermediaries to be validated, cleared and processed. An authority stores and mantains them in central ledgers. Examples of Authorities are:. The blockchain distributes the validation and storage of transactions over many computers in a secure and public way.

Institutions will be the first to admit that we need a new way forward, and that way forward is blockchain technology: a decentralized platform.

The blockchain – a cornerstone of tomorrow’s economy

Speculation on the value of blockchain is rife, with Bitcoin—the first and most infamous application of blockchain—grabbing headlines for its rocketing price and volatility. Cryptocurrency market value is subject to high variation due to the specific volatility of the market. Yet Bitcoin is only the first application of blockchain technology that has captured the attention of government and industry. Blockchain was a priority topic at Davos; a World Economic Forum survey suggested that 10 percent of global GDP will be stored on blockchain by Deep shift: Technology tipping points and societal impact , World Economic Forum, September , weforum. Multiple governments have published reports on the potential implications of blockchain , and the past two years alone have seen more than half a million new publications on and 3. Most tellingly, large investments in blockchain are being made.

This new cryptocurrency has people buzzing — its market value is at $35 billion in just 3 days

blockchain and the internet of value

As part of our series on innovation, James Chenevix-Trench and Edward Bonsor have embarked on an examination of the potential for blockchain technology and suggest how it might reshape financial transactions and create new avenues for investment. A glossary of key terms and concepts can be found at the end of their article. Whilst this article does not support or dissuade investment in Bitcoin, Bitcoin is a good starting point for investigation, as it was the first cryptocurrency that used blockchain to leverage the power of a permissionless decentralised database. In the article, we explain how this characteristic makes blockchain so important and lies at the heart of the emergent use cases of blockchain that we see in decentralised finance DeFi and Non Fungible Tokens NFTs. It is an interesting exercise testing the subject of Bitcoin on friends and family.

Are blockchain and distributed ledger technology the same? This is a common misconception that many people have.

Buy for others

According to Don, we are in the midst of the fourth industrial revolution. In that scenario, Don is describing a problem known as double spend. Intermediaries include financial institutions, governments, and social media organizations. They enable the clearing and settling of transactions, they keep records, and they enable us to trust one another because we have no peer-to-peer medium of value. Some kind of global, vast distributed ledger that runs on millions of computers all around the world and that would enable anything of value to be stored and transacted in a secure way?

Blockchain Technology Signify the Beginning of Internet of Value Era

The blockchain is simply part of the continuation of the history of Internet technology, represented by the Web, as it carries on its journey to infiltrate our world, businesses, society, and government. Whereas the Internet was first rolled out in , it was the World Wide Web that gave us its watershed evolutionary moment, because it made information and information-based services openly and instantly available to anyone on earth who had access to the Web. At its core, the blockchain is a technology that permanently records transactions in a way that cannot be later erased but can only be sequentially updated, in essence keeping a never-ending historical trail. This seemingly simple functional description has gargantuan implications. To fully understand the blockchain, you need to look at it simultaneously from a business, technical and legal perspective. Technically, the blockchain is a back-end database that maintains a distributed ledger that can be inspected openly. Business-wise, the blockchain is an exchange network for moving transactions, value, and assets between peers, without the assistance of intermediaries.

We can think of blockchain technology as representing the 'internet of value (internet ), as opposed to the 'internet of information' (internet.

Blockchain is speeding up in the financial industry. Deutsche Telekom itself is also active in this area and participates in the blockchain network Celo. Oliver Nyderle explains why blockchain is an important technology of the future for many industries and how Celo differs from Bitcoin in an interview. Oliver Nyderle : Blockchain technology enables the Internet of Values and is undoubtedly one of the most important technologies of the future.

Even years into the deployment of the internet, many believed that it was still a fad. Of course, the internet has since become a major influence on our lives, from how we buy goods and services, to the ways we socialize with friends, to the Arab Spring, to the U. Yet, in the s, the mainstream press scoffed when Nicholas Negroponte predicted that most of us would soon be reading our news online rather than from a newspaper. Fast forward two decades: Will we soon be seeing a similar impact from cryptocurrencies and blockchains? There are certainly many parallels. Like the internet, cryptocurrencies such as Bitcoin are driven by advances in core technologies along with a new, open architecture — the Bitcoin blockchain.

The Internet of Things IoT is probably the next paradigm shift in the IT world since the cloud and the biggest technological innovation since the advent of the internet. The IoT promises to make things, including consumer electronics part of the Internet environment.

This is part 1 of an introductory series, written to explain some of the high level concepts within the world of cryptoassets and blockchain technology. Powered by a revolutionary innovation called blockchain technology , cryptoassets are in the process of transforming the global economy for the better by building a new kind of internet. An internet where value can be freely and securely exchanged with anyone, anywhere in the world, at any time. Cryptoassets were born out of the idea that money should be free from the governments and powerful institutions that have historically controlled it. In , an anonymous person or group using the name Satoshi Nakamoto published an 8 page white paper to an internet forum that laid out the framework for a new type of internet currency. The paper was published in the wake of a global financial crisis, when trust in our financial institutions was at an all-time low. To keep the currency secure, Nakamoto came up with a clever new way to incentivize people all over the world to use their computers to run software that would enable his new currency to work.

Young and earning: Teen traders ride the bull market like pros. Are they missing the bear in sight? Choose your reason below and click on the Report button. This will alert our moderators to take action.

Comments: 5
Thanks! Your comment will appear after verification.
Add a comment

  1. Arabei

    I read it so much that I missed my favorite show)

  2. Churchill

    Love has many faces. Love sometimes smiles, sometimes laughs, sometimes cries, and sometimes she, like an angry wild cat, grimaces, hisses and after a moment rushes in your face to scratch out your eyes. Fear this kind of love.

  3. Raimond

    Wow, my sweets !!!!

  4. Mikall

    Previously, I thought otherwise, thank you for an explanation.

  5. Mazugore

    I print ... on the wall in the most conspicuous place !!!