I belong to a group of Mining Professionals in Ghana called the Accra Mining Network (AMN), we belong to a whatsapp platform where a member of ours Kojo Bedu-Addo posted an article about the Blockchain entitled " Using the Blockchain to Clean Up the Niger Delta" with the Link : http://knowledge.wharton.upenn.edu/article/using-blockchain-clean-niger-delta/?utm_source=kw_newsletter&utm_medium=email&utm_campaign=2017-08-15 , Understanding the article wasn't easy however some members know me as a cryptocurrency enthusiats and that's thanks to my godfather in Crypto @joshuaatiemo . So i was called upon to deliver a presentation on the blockchain on the AMN whatsapp group which i obliged.
Eventhough i was constrained with time to cover Money, Bitcoin and the Blockchain at once,I tried my best to break it down from first principles using whatever resource i could gather from the internet and would therefore like to present them here also. At the end of members of the group were able to understand the concept and that was my objective . They were grateful and I hope it can provide basic understanding for others also.
Find it below;
An Overview of Bitcoin and the Blockchain
By: Jude Ontoyin
Good evening honourable members of this platform.
Disclamer
Jude Ontoyin cannot accept responsibility for any loss or inconvenience caused by reliance on the material contained here. This presentation does not constitute financial advice or an investment recommendation in any way whatsoever. It is recommended you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions
ORDER OF PRESENTATION
• Brief History of Money
• Centralization Vs Decentralization of Money
• What is Bitcoin?
• Advantages of Bitcoin
• What is the Blockchain and how does it work?
• Applications of the Blockchain
• The Downside
• Further reading
• References
BRIEF HISTORY OF MONEY
Money is one of the oldest technologies humanity has.
• Money is a social construct in a society that simply allows us to express value to another
• Medium of exchange
• Money facilitates ease of trade
• Many things can be money
(Barter trade……cowries & shells, feathers……Precious Metals (gold & silver)…..paper money (gold depository receipts)….. FIAT money (inconvertible paper money made legal tender by a government decree)…….Cryptocurrency…….
• Money is constantly evolving with the pace of technology
PROPERTIES OF MONEY
• Durable- retains its shape, form, and substance over and extended period of time
• Divisible -It can be broken down into small parts
• Transportable -It can be easily moved from one location to another
• Noncounterfeitable- Cannot be easily duplicated
"I would like to highlight here the transitions of money over time"
CENTRALIZATION VS DECENTRALIZATION OF MONEY
• Centralization is a top down pyramid structure of power
(a select few at the top with more power and at the bottom we have the masses with little to no power)
• Decentralization is network of interconnected dots (people, nodes) that share equal power
• Individuals lose autonomy in centralized power systems
• Decentralization is a self-selecting meritocracy i.e it doesn't require someone else's permission, no King, Government
• Technology is moving us towards decentralization (internet, media, money)
Examples:
Because Whatsapp and Facebook are available to the majority, news starts from us before the mainstream media picks it up.
Because of youtube, today you can own your own channel.
You can own your own radio station by having a podcast.
Today Livestreaming is providing a rare opportunity to anyone anywhere in the world to participate live by connecting via the internet.
Basically we are going through a period in time when we are seeing democratization of money
FIAT CURRENCY
• Fiat means "let it be done".
• Derives its power from the government and their ability to tax people
• Created by central banks
• This is a centralized form of money
PROBLEMS WITH CENTRALIZED MONEY
• $69 trillion in global debt
• Bank runs
• Bail-outs and bail-ins
• Hyper-inflation (Zimbabwe)
• War on Cash to battle corruption (India, Argentina)
• Corrupt politicians
"I urge you at this point in your free time to research more on this...Money itself is a very wide topic to cover."
BITCOIN
The concept of decentralization applied to the human communication of value using technology
(The concept of decentralisation applied to money using technology)
• Money governed by a pre-determined social contract and regulated by mathematics instead of politics
• The supply cap and issuance is predictable
• Bitcoin is transparent, open-source and based on voluntary co-operation
• There are checks and balances between miners, nodes and developers
• Individuals are incentivized to follow the rules
• An example of a successful autonomous free market (no permission from government)
(coinmarketcap.com, blockchain.info)
Advantages of Bitcoin
• You maintain 100% control of your money (no downtime,
Spending limits or arbitrary restrictions)
• Borderless, permission less money
• Store of value (some refer to it as Digital Gold)
• Non-correlated asset that can act as a hedge in a diversified portfolio
As a store of value the mining industry has to take note because gold investors may soon diversify into this industry due to interest returns. One (1) Bitcoin even though highly volatile is almost three (3) times the worth of an ounce of gold.
Google search BTC to USD or BTC to GHS for the price and trend
Global Overview of Bitcoin from Google Trends
Basically a chart and map showing BItcoin enquires from google search
Delve deeper and click on Ghana in your spare time
Inquiry about the blockchain motivated today's presentation....Bitcoin is a huge topic and 20 mins to grasp it is tough but at least you get the idea. I cannot talk about Blockchain without talking about bitcoin because that's what gave birth to it. I cannot talk about Bitcoin without talking about the history of money because it is only then you can appreciate its evolution
BLOCKCHAIN-
Blockchain is a historical record of truth and a platform of trust. Many people know it as the technology behind Bitcoin, but blockchain’s potential uses extend far beyond digital currencies.
• Not a company
• Not a product
• Not a service you sign up for
• Not a currency; Currency is just the first application
What is blockchain?
A decentralized system that is transparent and accessible to everyone.
Currently, most people use a trusted middleman such as a bank to make a transaction. But blockchain allows consumers and suppliers to connect directly, removing the need for a third party.
Using cryptography (high level encryption) to keep transactions secure, blockchain provides a decentralized database, or “digital ledger”, of transactions that everyone on the network can see. This network is essentially a chain of computers that must all approve a transaction before it can be verified and recorded.
HOW DOES IT WORK IN PRACTICE?
In the case of Bitcoin, blockchain stores the details of every transaction of the digital currency, and the technology stops the same Bitcoin being spent more than once (No counterfeit)
Source: World Economic Forum
Basically sending bitcoin is like sending an email or whatsapp message to anyone anywhere in the world but this time with money.
WHY IS IT SO REVOLUTIONARY?
The technology can work for almost every type of transaction involving value, including money, goods and property. Its potential uses are almost limitless: from collecting taxes to enabling migrants to send money back to family in countries where banking is difficult. Blockchain could also help to reduce fraud because every transaction would be recorded and distributed on a public ledger for anyone to see.
[17:31, 8/20/2017] : I hope we can appreciate what the blockchain is
[17:32, 8/20/2017] : A simple record of truth
APPLICATIONS OF THE BLOCKCHAIN
Voters Register on the blockchain
Land Registry Titles on the blockchain
Mineral Concessions on the blockchain
Vehicle purchases & DVLA registrations on the blockchain
Internet on the blockchain
Trademarks on the blockchain
Copyright laws on the blockchain
Music on the blockchain
Real estate on the blockchain
Insurance on the blockchain
Telecommunication on the blockchain
Mining on the blockchain
Exploration on the blockchain
Banking on the blockchain
Social Media on the blockchain: https://steemit.com (like Facebook on the Blockchain but they pay you for content you post)
https://dtube.video/(like Youtube on the Blockchain but they pay you for content you upload)
Anything of value on the blockchain
Endless applications….. on the blockchain
WHO IS USING IT?
In theory, if blockchain goes mainstream, anyone with access to the internet would be able to use it to make transactions.
Currently only a very small proportion of global GDP (around 0.025%, or $20 billion) is held in the blockchain, according to a survey by the World Economic Forum’s Global Agenda Council.
But the Forum’s research suggests this will increase significantly in the next decade, as banks, insurers and tech firms see the technology as a way to speed up settlements and cut costs.
Companies racing to adapt blockchain include UBS, Microsoft, IBM and PwC. The Bank of Canada is also experimenting with the technology.
A report from financial technology consultant Aite estimated that banks spent $75 million last year on blockchain. And Silicon Valley venture capitalists are also queuing up to back it.
Video explaining Blockchain Technology: https://youtu.be/6WG7D47tGb0
Source: World Economic Forum
DOWNSIDE
Powers to suppress this technology are in play.
Just like we have good and bad everywhere there are people out there scamming people, there are hackers trying to breakdown the system so far the bitcoin network has not been hacked and is under attack 24/7. The more it is attacked the more it develops immunity.
However a system of currency that has been created to be decentralized is been centralized like the banks on Exchanges (Online Forex Bureaus) that attract hackers. E.g Every hacker targeting a bank to rob 1 million USD is much easier than robbing a million people with 1 usd each.
Beware of Ponzi Schemes; this is not a get rich scheme
Some believe Bitcoin is a scam but just like Religion we all have our beliefs
I suggest you do your own research and convince yourself whether this technology is good or bad.
We are at the very the beginning of a technology that has radical disruptive implications for the world at large, it creates for the first time in human history the possibility of the free flow of money to anyone anywhere at anytime without any restrictions or controls or central authority. The technology would go through difficult times but in the end digital currency will happen, has happened and will be a fundamental part of the future of humanity and absolutely nothing can stop that from happening because it already did (Andreas M. Antonopoulos).
Thank You.
FURTHER READING
Regularization of Bitcoin; (Bitcoin is a legal tender in Japan)
Is Bitcoin Legal: https://www.coindesk.com/information/is-bitcoin-legal/
Altcoins (Digital Assets): Etherium, Litecoin etc…
Bitcoin news: https://coindesk.com , https://cointelegraph.com , https://news.bitcoin.com/
Market Capitalization of Cryptocurrencies: https://coinmarketcap.com/
Initial Coin Offering
https://blockchain.info/
https://news.bitcoin.com/south-africa-to-take-balanced-approach-to-bitcoin-and-cryptocurrency-regulations/
https://price.bitcoin.com/
REFERENCES:
https://antonopoulos.com/
https://www.coindesk.com/
https://chrisdunn.com/bitcoin-really-money/?inf_contact_key=ddc9df8266d9004d2b9b55e88b925e391c25fe59d281f1a4295eec29a0cd9fc1
https://trends.google.com/trends/explore?q=bitcoin
https://www.weforum.org/agenda/2016/06/blockchain-explained-simply/
https://courses.skillincubator.com/
hiveblocks