The Basics of Blockchain Technology, Explained in Plain English.

     Jan 10, 2018 at 8:09AM

Historically, no asset has been a greater source of wealth creation than the stock market. Throughout its history, stocks have returned an average of 7% per year, inclusive of dividend reinvestment, and when adjusted for inflation. For the average long-term investor, this works out to a roughly doubling in value about once a decade.

Then cryptocurrencies came along and turned this traditional source of wealth creation on its head. When 2017 began, the aggregate value of all digital currencies combined equaled just $17.7 billion. However, as recently as this past weekend, the combined market cap of the nearly 1,400 investable cryptocurrencies was almost $836 billion. That better than 4,500% increase in value is something that the stock market would take multiple decades to accomplish.

Yet, truth be told, most folks don't understand the basics of cryptocurrencies, or the blockchain technology that underlies them. Recently, we broke down what cryptocurrencies are in the easiest way possible. Today, we're going to explain, in plain English, what blockchain technology is all about.

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Original Post
Drugb posted:

I wonder if djangy understands the complexity of such a system considering his limited education? Or he is just posting just to appear to have an ounce of intelligence?

Fix the goady caused by too SHIT in your brain,until then you will always think others have limitation.

Django posted:
Drugb posted:

I wonder if djangy understands the complexity of such a system considering his limited education? Or he is just posting just to appear to have an ounce of intelligence?

Fix the goady caused by too SHIT in your brain,until then you will always think others have limitation.

Enough with the goady reference, I am just questioning your mental capacity in understanding a complex concept. Given your limited schooling and academic achievements, I suggest that you are stepping outside the bounds of your mental capability. 

Drugb posted:
Django posted:
Drugb posted:

I wonder if djangy understands the complexity of such a system considering his limited education? Or he is just posting just to appear to have an ounce of intelligence?

Fix the goady caused by too SHIT in your brain,until then you will always think others have limitation.

Enough with the goady reference, I am just questioning your mental capacity in understanding a complex concept. Given your limited schooling and academic achievements, I suggest that you are stepping outside the bounds of your mental capability. 

You are an ass to think individuals can't understand complex concept.

As for schooling i am more rounded and advanced than you.You are nothing more than an under achiever pretending that you are smart.

Banking and payments aren't the only industries that could be affected by blockchain tech. Law enforcement, ride hailing, and many other sectors could also have blockchain in their future.

 

Bitcoin and other virtual currencies are made possible by what’s known as blockchain technology. Blockchain is essentially a global public ledger capable of automatically recording and verifying a high volume of digital transactions, regardless of location.

Bitcoin’s popularity is proving blockchain’s usefulness in finance, but entrepreneurs have come to believe blockchain could transform many more industries. Ultimately, the use cases for a transparent, verifiable register of transaction data are practically endless — especially since blockchain operates through a decentralized platform requiring no central supervision, while still remaining resistant to fraud.

As startups use blockchain to drive greater transparency and veracity across the digital information ecosystem, they’re boosting awareness of the technology in sectors ranging from payments to public policy. Here are the latest innovative ways companies are harnessing the power of global blockchain.

 
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Riff posted:
Drugb posted:
Riff posted:

forget crypto...think blockchain technology

Blockchain is the backbone of crypto. What makes it stable. 

uses of blockchain technology

riffy, i understand block chain theory along with hashing, have been doing this sort of thing for years. You kids can probably school you on this as they would be doing this in advanced mathematics courses involving proving theorems.  What it is, its a tool to be used that allows for the tracing of transaction along with a distributed framework.  It is not bullet proof but it is hard to crack given that a proof of work is required and the block chain is replicated across multiple servers.  I doubt that people with limited education like djangy can fully comprehend this concept. It would be gibberish to him. 

Drugb posted:
 

riffy, i understand block chain theory along with hashing, have been doing this sort of thing for years. You kids can probably school you on this as they would be doing this in advanced mathematics courses involving proving theorems.  What it is, its a tool to be used that allows for the tracing of transaction along with a distributed framework.  It is not bullet proof but it is hard to crack given that a proof of work is required and the block chain is replicated across multiple servers.  I doubt that people with limited education like djangy can fully comprehend this concept. It would be gibberish to him. 

Very impressive cut and paste ability. Trying to impress when you know sh-it.

Drugb posted:
Riff posted:
Drugb posted:
Riff posted:

forget crypto...think blockchain technology

Blockchain is the backbone of crypto. What makes it stable. 

uses of blockchain technology

riffy, i understand block chain theory along with hashing, have been doing this sort of thing for years. You kids can probably school you on this as they would be doing this in advanced mathematics courses involving proving theorems.  What it is, its a tool to be used that allows for the tracing of transaction along with a distributed framework.  It is not bullet proof but it is hard to crack given that a proof of work is required and the block chain is replicated across multiple servers.  I doubt that people with limited education like djangy can fully comprehend this concept. It would be gibberish to him. 

You don't know any thing about Django,he studied Digital Electronics and understands Software.

So haul your ass.

Riff posted:

Druggie...I was talking in terms of investments for the future...good idea to invest some money in the technology itself

Could be, but as with any investment, prepare for blows if it turns out to be hype. There are some application, but as long as the big companies don't buy in and govt can't regulate, it is not a sure thing. 

https://www.msn.com/en-us/mone...tcoin-wont-end-well-–-heres-how-his-past-predictions-have-panned-out/ar-AAuyR1K?li=BBmkt5R&ocid=spartanntp

Weighing in on the current cryptocurrency craze, billionaire investor Warren Buffett said that he believes the future of bitcoin is bleak. "In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending," Buffett told CNBC on "Squawk Box" Wednesday.

n the wake of Buffett's remarks, Jim Cramer, host of CNBC's "Mad Money" tweeted out, "Does anyone else think it is as comedic as I do that the cryptomaniacs trashed Buffett as an old hack who doesn't understand good investments?"

"Buffett has admitted that he missed Amazon and Google. But how about the fact that he has outperformed every other manager on earth? Cryptomaniacs hate that, too?" Cramer wrote.

Indeed, the CEO of Berkshire Hathaway is famous because so many of his financial predictions have come true. That's how he ended up with a net worth of over $81 billion and the nickname "The Oracle of Omaha."

Still, Buffett investment ideas aren't bulletproof, as Cramer notes. He has been wrong. Here's how some of the billionaire's most important past predictions have shaped up.

He bet on Bank of America's comeback — and won

In 2011, when Bank of America was struggling post-financial crisis with legal issues, Buffett boldly bet on the bank's comeback. That decision paid off, big-time.

Buffett's Berkshire struck up a deal with the bank in which, for $5 billion, Berkshire would receive preferred shares of Bank of America, which paid out an annual dividend of 6 percent, as well as the right to buy warrants of 700 million shares of the bank's common stock at a deeply-discounted exercise price of $7.14 each by 2021.

"This is a vote of confidence by a savvy investor," Bank of America's chairman Chad Holliday said in an interview with The Wall Street Journal in 2011. "We've got some work to do. We understand that. He understands that."

n the summer of 2017, when the bank passed the Federal Reserve's "stress tests," it was able to boost its annual dividend, which triggered Buffett's ability to exercise those warrants. At that time, Bank of America common stock shares were worth over $24. He was able to turn a profit of $12 billion from his $5 billion investment, CNBC reports

He was right about airlines, and also wrong

For years, Buffett criticized the airline industry for not being a sound investment.

"Investors have poured their money into airlines and airline manufacturers for 100 years with terrible results," Buffett said in a shareholder meeting in 2013, Fortune reports. "It's been a death trap for investors."

His aversion dated back to 1989, when Berkshire bought $358 million in preferred shares in U.S. Airways that quickly dropped in value. While he ultimately did make money on the deal, Buffett reportedly called the investment a mistake in nearly every annual letter from 1989 to 1996, according to CNBC.

In a 2007 note to shareholders, he even wrote, "… if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down."

But the billionaire has evolved, and Berkshire made a surprisingly big bet in the industry: In 2016, revealed big stakes in several U.S. airlines.

"It's true that the airlines had a bad 20th century. They're like the Chicago Cubs. And they got that bad century out of the way, I hope," Buffett said in 2016 on "Squawk Box." "The hope is they will keep orders in reasonable relationship to potential demand."

He nailed it on S&P index funds

A long-time, vocal advocate for S&P 500 low-cost index funds, in 2007, Buffett made a $1 million bet against Protégé Partners that hedge funds wouldn't outperform an S&P index fund over a decade.

Buffett won: His choice fund, the Vanguard 500 Index Fund Admiral Shares, returned 7.1 percent compounded annually, while his competitor's basket of hedge funds returned an average of 2.2 percent, according the The Wall Street Journal.

As a result of the win, Buffett donated the prize, which appreciated faster than expected to $2.22 million, to Girls Inc. in Omaha.

He was very wrong on tech

Buffett didn't initially believe in tech giants like Google and Amazon.

In 2017, the billionaire investor admitted that passing up on Google years before, when the company was receiving $10 or $11 per advertising click from Berkshire Hathaway consumer insurance company subsidiary Geico, was a mistake, CNBC reports.

Buffett also expressed regret over not investing in Amazon when he had the opportunity. "I did not think [founder Jeff Bezos] could succeed on the scale he has," Buffett said to shareholders in May 2017.

So far he's called the U.S. economy under Trump

Although the billionaire openly backed 2016 Democratic candidate Hillary Clinton, he remained optimistic about what the economy would be like after President Donald Trump was elected even when others were worried.

Shortly before Trump's inauguration, Buffett proclaimed that the U.S. economy would continue chugging along under the new president.

"America works," Buffet told CNBC in January 2017. "I've said this before. It'll work wonderfully under Hillary Clinton, and I think it'll work fine under Donald Trump."

"There will be hiccups from time to time in the economy," he said. "[But] we'll do well over time."

Berkshire's optimism has seemed to hold true. In December, The CNBC All-American Economic Survey found that for the first time in at least 11 years, over half of the respondents rated the economy as good or excellent. The Dow Jones industrial average has also recently hit record highs, reaching some pretty major milestones.

Don't miss:Warren Buffett is one step closer to naming his successor—here's a key trait he'll be looking for

 
Drugb posted:
Riff posted:

Druggie...I was talking in terms of investments for the future...good idea to invest some money in the technology itself

Could be, but as with any investment, prepare for blows if it turns out to be hype. There are some application, but as long as the big companies don't buy in and govt can't regulate, it is not a sure thing. 

Block-chain technology is viable and has great economic benefits.   It is now the Wild West just like the dot com phase.  Most of these block chain companies like RIOT, LTEA, etc will disappear.  Bitcoin is a derivative instrument of block chain.  

The big players will get involved and there will be some international controls framework to legitimize and make it mainstream.  It is still unclear how it will play out and who will survive.  The day Apple, MS and Google enter the frey it will change the landscape. The current proliferation will continue until the big guys enter, then you will see consolidation and streamlining.

 

Drugb posted:
Riff posted:

Druggie...I was talking in terms of investments for the future...good idea to invest some money in the technology itself

Could be, but as with any investment, prepare for blows if it turns out to be hype. There are some application, but as long as the big companies don't buy in and govt can't regulate, it is not a sure thing

Major factors to firmly understand/know before making investments.

The three main stumbling blocks to blockchain scalability are:

 

 
  1. The tendency toward centralization with a growing blockchain: the larger the blockchain grows, the larger the requirements become for storage, bandwidth, and computational power that must be spent by “full nodes” in the network, leading to a risk of much higher centralization if the blockchain becomes large enough that only a few nodes are able to process a block.
  2. The bitcoin-specific issue that the blockchain has a built-in hard limit of 1 megabyte per block (about 10 minutes), and removing this limit requires a “hard fork” (ie. backward-incompatible change) to the bitcoin protocol.
  3. The high processing fees currently paid for bitcoin transactions, and the potential for those fees to increase as the network grows. We won’t discuss this too much, but see here for more detail.
Drugb posted:

The three main stumbling blocks to blockchain scalability are:

 

 
  1. The tendency toward centralization with a growing blockchain: the larger the blockchain grows, the larger the requirements become for storage, bandwidth, and computational power that must be spent by “full nodes” in the network, leading to a risk of much higher centralization if the blockchain becomes large enough that only a few nodes are able to process a block.
  2. The bitcoin-specific issue that the blockchain has a built-in hard limit of 1 megabyte per block (about 10 minutes), and removing this limit requires a “hard fork” (ie. backward-incompatible change) to the bitcoin protocol.
  3. The high processing fees currently paid for bitcoin transactions, and the potential for those fees to increase as the network grows. We won’t discuss this too much, but see here for more detail.

Drug, what you think of Ethereum vs Bitcoin?  It’s growing fast and many are touting it as a better technical platform!  What’s your view?

Drugb posted:

The three main stumbling blocks to blockchain scalability are:

 

 
  1. The tendency toward centralization with a growing blockchain: the larger the blockchain grows, the larger the requirements become for storage, bandwidth, and computational power that must be spent by “full nodes” in the network, leading to a risk of much higher centralization if the blockchain becomes large enough that only a few nodes are able to process a block.
  2. The bitcoin-specific issue that the blockchain has a built-in hard limit of 1 megabyte per block (about 10 minutes), and removing this limit requires a “hard fork” (ie. backward-incompatible change) to the bitcoin protocol.
  3. The high processing fees currently paid for bitcoin transactions, and the potential for those fees to increase as the network grows. We won’t discuss this too much, but see here for more detail.

I will step out from ignoring to expose your plagiarizing.

Who are you impressing with the three points,that was not made up by you.It was from an article in 2015 word for word.

Prove that Django is wrong.

Riff posted:

arrite guys...ayuh relax...this is some good info

Riff,

i started this thread,due to it's a hot topic on the net.I will post more on the subject as it comes by.

Drugb have a habit of knocking other posters down.Turns out he is not smart as claimed to be be.

Blockchain Is Changing Our World: Here Are The Best Practical Examples Of How It Is Used In 2018.

The potential of blockchain technology to disrupt nearly every industry in some way cannot be dismissed even though there are still several hurdles to overcome before we see its full transformative impact.

read more

Django posted:
Drugb posted:

The three main stumbling blocks to blockchain scalability are:

 

 
  1. The tendency toward centralization with a growing blockchain: the larger the blockchain grows, the larger the requirements become for storage, bandwidth, and computational power that must be spent by “full nodes” in the network, leading to a risk of much higher centralization if the blockchain becomes large enough that only a few nodes are able to process a block.
  2. The bitcoin-specific issue that the blockchain has a built-in hard limit of 1 megabyte per block (about 10 minutes), and removing this limit requires a “hard fork” (ie. backward-incompatible change) to the bitcoin protocol.
  3. The high processing fees currently paid for bitcoin transactions, and the potential for those fees to increase as the network grows. We won’t discuss this too much, but see here for more detail.

I will step out from ignoring to expose your plagiarizing.

Who are you impressing with the three points,that was not made up by you.It was from an article in 2015 word for word.

Prove that Django is wrong.

News boy,  I never claimed to be the author of the above. Get a life and stick to your promise of putting me on ignore. 

Baseman posted:
Drugb posted:

The three main stumbling blocks to blockchain scalability are:

 

 
  1. The tendency toward centralization with a growing blockchain: the larger the blockchain grows, the larger the requirements become for storage, bandwidth, and computational power that must be spent by “full nodes” in the network, leading to a risk of much higher centralization if the blockchain becomes large enough that only a few nodes are able to process a block.
  2. The bitcoin-specific issue that the blockchain has a built-in hard limit of 1 megabyte per block (about 10 minutes), and removing this limit requires a “hard fork” (ie. backward-incompatible change) to the bitcoin protocol.
  3. The high processing fees currently paid for bitcoin transactions, and the potential for those fees to increase as the network grows. We won’t discuss this too much, but see here for more detail.

Drug, what you think of Ethereum vs Bitcoin?  It’s growing fast and many are touting it as a better technical platform!  What’s your view?

Not ready yet to jump on either band wagon.  I leave investing in crypto and blockchain to sloppy boy and his crew who claim to have disposable income. 

That being said, the issue I have primarily with crypto currency is its unregulated nature. It is not backed by any central authority and provides a haven for money launderers and other illegal activities. The currency is only as good as people who are willing to trade it. If there are no buyers, it goes to zero. If you lose your virtual walled, there is no customer service to complain to. If you pay by crypto and the seller does not deliver, there is no recourse. These are just some of the challenges. If in the future reliable regulatory bodies begin policing the currency then it may become scaleable to the mass for all sorts of transactions. Will it replace cash, credit cards, wire transfers and other traditional monetary instruments, possible, but not yet. 

Drugb posted:
Django posted:
Drugb posted:

The three main stumbling blocks to blockchain scalability are:

 

 
  1. The tendency toward centralization with a growing blockchain: the larger the blockchain grows, the larger the requirements become for storage, bandwidth, and computational power that must be spent by “full nodes” in the network, leading to a risk of much higher centralization if the blockchain becomes large enough that only a few nodes are able to process a block.
  2. The bitcoin-specific issue that the blockchain has a built-in hard limit of 1 megabyte per block (about 10 minutes), and removing this limit requires a “hard fork” (ie. backward-incompatible change) to the bitcoin protocol.
  3. The high processing fees currently paid for bitcoin transactions, and the potential for those fees to increase as the network grows. We won’t discuss this too much, but see here for more detail.

I will step out from ignoring to expose your plagiarizing.

Who are you impressing with the three points,that was not made up by you.It was from an article in 2015 word for word.

Prove that Django is wrong.

News boy,  I never claimed to be the author of the above. Get a life and stick to your promise of putting me on ignore. 

You try impress by plagiarizing. Idiot, you got caught! Haul yuh goadee dah side.

Drugb posted:
Django posted:
Drugb posted:

The three main stumbling blocks to blockchain scalability are:

 

 
  1. The tendency toward centralization with a growing blockchain: the larger the blockchain grows, the larger the requirements become for storage, bandwidth, and computational power that must be spent by “full nodes” in the network, leading to a risk of much higher centralization if the blockchain becomes large enough that only a few nodes are able to process a block.
  2. The bitcoin-specific issue that the blockchain has a built-in hard limit of 1 megabyte per block (about 10 minutes), and removing this limit requires a “hard fork” (ie. backward-incompatible change) to the bitcoin protocol.
  3. The high processing fees currently paid for bitcoin transactions, and the potential for those fees to increase as the network grows. We won’t discuss this too much, but see here for more detail.

I will step out from ignoring to expose your plagiarizing.

Who are you impressing with the three points,that was not made up by you.It was from an article in 2015 word for word.

Prove that Django is wrong.

News boy,  I never claimed to be the author of the above. Get a life and stick to your promise of putting me on ignore. 

You presented the points without  the source,you are a fraud and i had to expose you.I can spot fraudsters and individuals who likes to impress from a distance.

You are busted.

As for the label newsboy, do any one stop you from creating threads,is it not what this forum about to start topics.

Any way you are back on ignore,you can make comments without mentioning Django,take a cue i don't called out on any posters when commenting nor try to demean them.I have respect for every one,although our views may be different.

Django posted:

You presented the points without  the source,you are a fraud and i had to expose you.I can spot fraudsters and individuals who likes to impress from a distance.

You are busted.

As for the label newsboy, do any one stop you from creating threads,is it not what this forum about to start topics.

Any way you are back on ignore,you can make comments without mentioning Django,take a cue i don't called out on any posters when commenting nor try to demean them.I have respect for every one,although our views may be different.

It was never my intent, so shut your cake hole. You should be thanking me for bringing your dead thread to life. Now run along and do jackass Granger's biddings. 

While reading Druggie's post these guys are speaking about, I must admit I said to myself "eh eh, dis banna might be lil brighter than I thought" until I hit the last paragraph. baddam the man made my hands fall after I read " see here for more details" that was a dead giveaway he ain't too bright.

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