Let me first start from what I think the problem Blockchain solves. Think about the files on your computer, the digital files on your devices, when you send something from you to me, what you are sending is a copy of the files. Here is the challenge, the internet decentralised communication and made it easy to share digital files and that is remarkable.
One thing that was lacking was the ability to easily send money/value digitally from Alice to Bob (peer to peer) without the help of a trusted third party (e.g Paypal, your Bank) simply because of the problem of copy/counterfeit. The trusted third party has to tell Bob that Alice has the digital money she is sending and she is not sending a copy or counterfeit, and ensuring that once she sends it to Bob, she can’t use it again.
Enter the blockchain
Blockchain is a decentralised ledger that allows for the creation and maintenance of immutable records. Simply put it is one really big book of records (ledger) that isn’t held by one person but thousands and potentially millions of people (decentralised) that can not be changed (immutable).
Thus when Alice send digital money from her wallet to Bob, that transaction is recorded on the blockchain and once it has gone there, everyone including Bob can see the transaction, the miners (accountants) would verify that Alice indeed has that digital money and she has the power to send it to Bob, then they verify the transaction as good to go.
Now the sweet part
Once a transaction has been verified, it becomes part of a blockchain, the other set of transactions that would be verified are also entered into another block and they are linked using cryptography (some really secure mathematical stuff) to the previous block, and then it goes, on and on, blocks just keep getting chained to each other forming the blockchain.
Now, it is said to be secure and immutable because for you to change anything in a block that has been chained, you basically have to remove all of the blocks that are stacked on top of that block. For this to happen you have to overpower the whole network and work faster than every other person who verifies transaction on the network, mind you everyone can see this happening. So it would be quite a feat. This is called a 51% attack on a network because you have to basically overpower majority of the miners to change anything and it can be a verry expensive venture. It would cost about $1.4 billion ($5 Billion is daily recurring electricity cost) to attack the Bitcoin blockchain and the max you can earn per day is 918BTC.
Why is everyone excited? In the past, we had to trust in authority figures to keep records – banks, hospitals, local governments, electoral commissions, etc. Now we can imagine a world where we don’t have to trust anyone to keep records of an event that has happened, imagine we didn’t have to trust that the other guy hasn’t sent me counterfeit land sale documents because I can see the document trail on the blockchain, imagine a world where your passport was useless, because your entire identity & history was on the blockchain and visible to anyone you give permission to view it. This is the reason everyone is pumped and is the reason everything went to the moon in 2017.
Now the elephant in the room: bitcoins and other cryptocurrencies
These are applications made possible by the blockchain technology. You can relate it to the way the light bulb made possible by electricity. In all eagerness I can say this is not even a tip of the iceberg, the possibilities and implications of this technology are far-reaching, we have only scratched the surface. This is the best time to be alive.
This article is in partnership with Quidax. Quidax is a European based digital assets exchange with a focus on Africa. We provide a seamless platform for users to send, receive, buy and sell cryptocurrencies using their local currencies.
Tether mints 80,000,000 USDT to unknown wallets within 24 hours
Tether Treasury minted a whopping 80 million USDT in less than 24 hours.
Tether, the world’s most valuable stable coin by market capitalization, has been gaining a lot of traction lately. The latest development is that Tether treasury minted a whopping 80 million USDT to unknown wallets in less than 24 hours, as seen on Whale Alert, an advanced blockchain tracker and analytics system.
Tether is ranked the 3rd largest cryptocurrency by market cap of $9.2 billion, with a daily volume of $22.8 billion as at the time this report was drafted.
Quick fact: Tether is designed as a blockchain-based cryptocurrency whose digital coins in circulation are backed by the same value of traditional fiat currencies like the U.S dollar, Japanese Yen, or the Euro. It trades under the ticker symbol USDT.
Barely weeks ago, Bloomberg reports stated that the momentum with the help of the U.S dollar was expected to make Tether gain and move to the second spot.
“Absent an unlikely reversal in predominant crypto trends, it should be a matter of time until Tether passes Ethereum to take the No. 2 spot in total assets behind Bitcoin. Receiving help from widespread adoption with a workable case as a proxy for the world’s reserve currency, there seems little to stop the increasing adoption of the dollar-linked stable coin,” the report stated.
Ripple payment now operational in U.S, 22 geopolitical regions
Ripple (XRP) plays dual roles as a payment platform and a currency.
The infusion of Ripple by global banks has gained traction lately, as Spanish biggest bank by total asset and market capitalization, Santander, designed a Ripple enabled payment app called Pay FX that offers a borderless blockchain-based payment channel.
Santander recently just added 19 geopolitical regions to its One Pay FX international payments app offering in collaboration with blockchain and crypto payment powerhouse Ripple.
Before now, the blockchain payment app was available only in Poland, Spain, Brazil, and the United Kingdom; One Pay FX now enables users from the world’s biggest economy, United States, and emerging markets that include Chile to sit among others on the list of added countries, totaling the number of countries on its offering to 22.
Quick fact: Ripple (XRP) plays dual roles as a payment platform and a currency. It has an open-source platform that is created to allow quick and cheap transactions.
Unlike its crypto rival, Bitcoin, which was never intended to be a simple payment system, Ripple has gained the attention of major global banks, like Standard Chartered, and Barclays for international transactions worldwide.
“Customers told us that the international payments process could be better so we partnered with Ripple to explore how BTC could make transactions faster, cheaper and more transparent,” Ed Metzger, CTO of One Pay FX said in the statement.
Metzger described feedback from customers, noting difficulties with transaction exchange rate clarity and timing confusion.
“Ripple helps us directly address the issues raised by our customers […] Whether they are putting down a deposit on a holiday rental or paying a foreign supplier, they see exactly how much will arrive when they’re making the payment and have certainty about when it will get there.”
What this means ; The Ripple enabled app will allows customers to see exactly how much will arrive when they’re making international payments, while the low-cost transactions happen instantly or on the same day, instead of the traditional 3-5 timeframe.
BTC whale moves 19,630 BTC valued at $185,000,000
BTC whales have shown historically that they often determine BTC trend.
BTC whales have been moving large stacks of BTCs lately, triggered by the recent bullish momentum in the BTC market.
According to data obtained from BTCBlockbot, a crypto analytic tracker, someone moved 19,630 BTC block 638,319 estimated to be roughly worth about $185 million dollars, less than 12 hours ago.
Whale alert! 🐋 Someone moved 19,630 BTC ($184M) in block 638,319 https://t.co/lfZolRzLCR
— Bitcoin Block Bot (@BtcBlockBot) July 8, 2020
In addition, BTCBlockbot suspected that the BTC whale probably came from Coinbase moving about 19,630 BTC ($185M) in block 638,316.
— Bitcoin Block Bot (@BtcBlockBot) July 8, 2020
Global investors and traders are now rushing into the BTC market as cheap money abounds, and inflation is on a record high. While it is difficult to predict market movements, BTC whales have shown historically that they often determine BTC trend.
Quick fact: At the BTC market, investors or traders who own large amounts of bitcoins are typically called Bitcoin whales. This means that a BTC whale would be an individual or business entity (with a single Bitcoin address) owning around 1000 Bitcoins or more.
As BTC whales accumulate BTCs, bitcoin’s circulating supply reduces, and this can weaken any bearish trend bitcoin finds itself in. Meaning that over time, it’s possible that as BTC approaches its fixed supply of 21 million, the price of BTC will go up, with BTC’s present demand factored in.
“The price of BTC is now more than 20x higher than it was when we first saw this many whales, implying that more wealth is being held by whales,” Glassnode noted.
“However, the average balance held by each large holder has decreased during this period, such that whales actually hold less bitcoins now than in 2016, and less wealth (in USD terms) than in 2017,” it added.