SS Oa Cees Cryptocurrency? Su a 1) a 7 RetBLOCKCHAIN INSIDER In 2008, a cryptographer who goes by the pseudonym Satoshi Nakamoto created a crypto-currency called bitcoin. Bitcoin is digital currency that allows you to perform peer-to-peer transactions without the help of a third party such as banks. Although the enthusiasm around Bitcoin waned after several governments refused to recognise the crypto- currency, but the underlying technology of blockchain has been hailed by the banking sector. PAGE OD What is blockchain technology? A blockchain is an anonymous online ledger that uses data structure to simplify the way we transact. Blockchain allows users to manipulate the ledger in a secure way without the help of a third party. A bank's ledger is connected to a centralised network. However, a blockchain is anonymous, protecting the identities of the users. This makes blockchain a more secure way to carry out transactions. The algorithm used in blockchain reduces the dependence on people to verify the transactions. This technology used for recording various transactions has the potential to disrupt the financial system.How it works: a aN © [el) sh @ sw @ w oneocton Ss pane feaicastore N cone ZZ Validation aceenineeaea os = Someone requests computers The netwon enyprocurrney. ceneete known es nodes. validates the transaction contracts, records, fond the user’ status ‘or other information Using known clgorthms [)._ Se ._ yy B=! thotedger The new block fs then added to the ‘The transaction falsting biockchain, Ina way that Is Is complete permanent and unalterable erecta Cciyptocurteney le @ medium of exchange, created ‘ond stored electronically in the blockchaln. using ‘eneryption techniques to control the creation at Monetary units and to verity the transfer of funds. Biteoin the best known example. X)—AD) AA Hos no intrinsic Has no physical its supply is not value in thot itis not form and exists only determined by @ central Tedeomabie for in the network Banke and the network fe ‘another commodity, ‘completely decentralized. Such as golBLOCKCHAIN INSIDER How it works? According to Sunny Ray, Co-founder and President of India's leading bitcoin blockchain company, Unocoin, "blockchain enables two. entities that do not know each other to agree that something is true without the need of a third party. As opposed to writing entries into a single sheet of paper, a blockchain is a distributed database that takes a number of inputs and places them into a block. Each block is then ‘chained! to the next block using a cryptographic signature. This allows blockchains to be used as a ledger which is accessible by anyone with permission to do so. If everyone in the process is pre-selected, the ledger is termed ‘permissioned'. If the process is open to the whole world, the ledger is called unpermissioned." PAGE O& Where can it be used? Use of blockchain technology is not limited to the financial sector. It is being used in many other areas. For example, Honduras government has put all land records on a public ledger - the blockchain. The minute there is a change in ownership, it gets recorded publicly. The Australian Securities Exchange (ASX) announced this year that it would move Australia's equities clearing and settlement system on to blockchain. In October 2015, Nasdaq unveiled Ling, a solution enabling private companies to digitally represent share ownership using blockchain- based technology.BLOCKCHAN INSIDER What Can a Blockchain Do? Financial institutions have financed the disruption of countless industries over the last 80 years; they have an idea of what a revolutionary technology can do to static incumbents. So, to stay chead of change, banks have been proactive in setting up R&D labs, building test centers and establishing partnerships with blockchain developers to fully understand the revolutionary potential of the technology. Financial institutions were the first to dip their feet in, but academia, governments ‘and consulting firms have also studied the technology. All of this work is, of course, in addition to what the entrepreneurs and developers are doing, either by finding new ways to use the bitcoin or ethereum blockchains, or else creating entirely new blockchains. @r + Or = Public Key Private Key PAGE OS This has been going on for over three years now, and the results are starting to come in. While some of the waters are still murky, this Is what we know a blockchain can do: ESTABLISH DIGITAL IDENTITY ‘As discussed in our guide "How Does Blockchain Technology Werk?", the identity component of blockchain technology is fulfilled through the use of cryptographic keys. Combining a public and private key creates a strong digital identity reference based on possession. A public key is how you are identified in the crowd (like an email address), « private key is how you express consent to digital interactions. Cryptography is an important force behind the blockchain revolution. be yctl Digital SignatureBLOCKCHAN INSIDER Serve as a system of record As stated in our guide "What is a Distributed Ledger?", blockchains are an innovation in information registration ond distribution. They are good for recording both static data (a registry) or dynamic dota (transactions), making it an evolution in systems of record, Inthe case of a registry, data con be stored on blockchains in any combination of three ways: Unencrypted date - can be read by every blockchain participant in the blockchain cond is fully transparent. Encrypted data - can be read by participants with « decryption key. The key provides access to the data on the blockchain ond ean prove who added the data and when it was added. Hoshed data - can be presented alongside the function that created it to show the date wasn't tampered with. Blockchain hashes are generally done in combination with the original dota stored off-chain. Digital fingerprints’, for example, are often hashed into the blockchain, while the main body of information can be siored offline. Such a shared system of record can change the way disparate organizations work together. Currently, with date siloed in private servers, there is an enormous cost for inter-company transactions invelving processes, procedures and cross-checking of records. Claud A feature of a blockchain database is that is has a history of itself. Because of this, they are often called immutable. In other words, it would be a huge effort to change an entty in the database, because it would require changing all of the dato that comes afterwards, on every single node. In this ‘Way, itis more a system of record than a databose. Ce ic Cryptocurrencies were the first platform developed using blockchain technology. Now, people have moved from the idea of a platform to exchange eryptocurrencies to «a platform for smart contracts. The term 'smart contracts’ has become somewhat of « catch-all phrase, but the idea can actually be divided into several categories: There are the 'vending machine’ smart contracts coined in the 1990s by Nick Szabo, This is where machines engage after receiving an external input (a cryptocurrency), or else send a signal that triggers a blockchain activity. There ore also smart legal contracts, or Ricordien contracts. Much of this ‘application is based on the idea that a contract is o meeting of the minds, and that it is the result of whatever the consenting parties to the contract agree to. So, a contract ean be a mix of a verbal ‘agreement, a written agreement, and now also some of the useful aspects of blockchains like timestamps, tokens, auditing, document coordination or business logic.Blockchains are built from 3 technologies 1. Private Key Cryptography 2. P2P Network 3. Program (the protocol) Cash vs. Plastic Tree falls ina Tragedy of the forest commons Identity System of Record | Platform FINALLY, THERE ARE THE ETHEREUM SMART CONTRACTS. THESE ARE PROGRAMS WHICH CONTROL BLOCKCHAIN ASSETS, EXECUTED OVER INTERACTIONS ON THE ETHEREUM BLOCKCHAIN. ETHEREUM ITSELF IS A PLATFORM FOR SMART CONTRACT CODE. BLOCKCHAINS ARE NOT BUILT FROM A NEW TECHNOLOGY. THEY ARE BUILT FROM A UNIQUE ORCHESTRATION OF THREE EXISTING TECHNOLOGIES.NWOSU. “WHETHER YOU SECURE YOUR BITCOIN YOURSELF OR WITH A THIRD PARTY LIKE COINFLOOR, WE RECOMMEND Seta Le Tec et ecu na Concerns about the security of the cryptocurrency have continued to shadow it. Last year, almost Pe een ee el cee eae accurate cea a De ey etic eee ee ee a eer eg eet CaaS Daniel Scott of Coincorner says the currency itself is secure, but the problem surrounds businesses in the Industry and the wallets where the bitcoin are stored, “Unfortunately, IT security is a real- Re nO aCe oo Re a Daa aaa) quick Google search for recent hackings of large global companies to see that any company is ‘open fo security issues regardless of size or industry.”BLOCKCHAIN INSIDER PAGE 09 What is the future of Cryptocurrency? ‘The market of cryptocurrencies is fast and wild. Nearly ‘every day new cryptocurrencies emerge. old die, early adopters get wealthy and investors lose money. Every ‘cryptocurrency comes with a promise, mostly a big story to turn the world around, Few survive the first ‘months. and most are pumped and dumped by speculators and live on as zombie coins until the last bagholder loses hope ever to see a return on his Investment. Markets are dirty. But this doesn’t change the fact that ‘cryptocurrencies are here to stay and here to change the world. This is already happening. People all over ‘the world buy Bitcoin to protect themselves against ‘the devaluation of their national currency. Mostly in Asia, a vivid market for Bitcoin remittance has ‘emerged, and the Bitcoin using darknets of cybercrime are flourishing, More and more companies discover the power of Smart Contracts or token on Ethereurm, the first real-world application of blockchain technologies emerge. ‘The revolution is already happening. Institutional investors start to buy cryptocurrencies. Banks and. governments realize that this fention has the potential to draw their control away. Cryptocurrencies change the world. Step by step. You can either stand beside and observe - or you can become part of history in the making.BLOCKCHAIN INSIDER PAGE 10, List of Top Cry ptocurrencies 2015 - 2017 To start this page off, let's first take a look at the top 10 or so cryptocurrencies ‘of 2015 - 2017 to get a sense of which ones have stuck around and which ones are up-and-coming. This list was created by us (cryptocurrencyfacts.com) and is based on familiarity, market cap (total coins that will ever be produced times current value), the ease with which a coin can be traded for fiat currency like the US. dollar, and the coins potential to survive trends. In other words, these are the coins that we think are the most valid to invest in and explore for new coin users (not simply the coins with the highest market cap, value, or most relevance alone). With that said, any “best of list” is bound to have opinions in it, and this is true for this list as well. So do feel free to compare.fe eae Rea) eee a a OM We ceed others all have decent values, familiarity, and respectable market caps. Some even Led moons RRA uk Ae od ly Rok Me od Hips eal fog seed pl Glan pres interesting code). We could easily see one a given existing altcoin or even a new coin spring up to the top of the list at any moment. The cryptocurrency market is young and wees Piao) ar eet renee eds cee Note: eee La ncaa cca osie feet Reker VA Co Ree Ree Skea eee topy eet od exchanges and you can use some coins to buy certain things online, but converting ne serene Sree nn ie neaninnT een rey aa ata Neg eeetet tonite aU col: penne Ee tert joing to give you USD or pay that rate for your coins. This is more like selling stocks ca like penny stocks) or trading one baseball card for another then actually .aving money on hand. So, keep that and the volatility of the markets and coins in mind when investing.Consisting continuously growing list of records, called blocks, blockchains are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data. Typically, it’s managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. The technology facilitates secure online transactions by having distributed digital ledger that is used to record HOW BLOCKCHAIN TECHNOLOGY CAN CHANGE THE WAY MODERN BUSINESSES WORK Traditional processes in conducting business in the digital world doesn't offer great transparencies and security. Because of the centralized design, it’s controllable, but information and data manipulation are common. This is where blockchain technology is gradually transforming peer-to-peer interactions in the modern digital world. Many large businesses are looking to this technology to improve the systems they are using. transactions across many computers. The open distributed ledger that records transactions between two parties efficiently and in a verifiable and permanent way. So once recorded, the data in any given block cannot be changed without alteration of all subsequent blocks and the _ collusion of the network. The processes are authenticated by mass collaboration powered by collective self- interests.Centralized Decentralized The New Networks Distributed ledgers can be public or private and vary in their structure and size. Public blockchains Require computer processing power to confirm transactions (mining”Distributed Ledgers - Users (@) are anonymous ~ Each user has a copy of the legder and partipates in confirming transactions independently - Users (©) are not anonymous ~ Permision is required for users to have a copy of the legder and participate in confirming transactionsindividval ‘transaction’ events successful transactions [] seitcommaerniing © Co servers check tevalitet the blocks nthe chain ‘ + The quest tocheck he Intest bloc gets payment validated as‘honest part of the chain. OND Op ie | BLOCKCHAIN ew blocks > 1 gre added approximately {every 10 mins. ‘hash’ of previous block. The first distributed blockchain was conceptualized by Satoshi Nakamoto in 2008. In the following year, the technology was implemented as a core component of the digital currency Bitcoin. The invention of the blockchain for Bitcoin made Bitcoin the first digital currency to solve the double spending problem, without the use of a trusted authority or central server. Blockchain's design has been an inspiration for others to apply similar decentralized design. While providing transparency over an individual trade by making the accounting in any given transaction reviewable, the data is therefore public. What this means, all parties involved can access the blockchain, which updates itself after specified times. For example, Bitcoin blockchain updates once every ten minutes. Transparency and frequent updates eliminate data manipulation and common clerical issues found on manual and traditional processes. Blockchain usually has its own Graphical User Interface (GUI) in the form of a wallet application. Those using blockchain, can use their wallets to purchase items and exchange cryptocurrency,ee 1 | One example of a smart contract creator is the Etherparty. It's a application that is describec as a contact wizard. The platform eliminates coding or programming by offering template libraries where users can create customized contracts. The wizard will guide users through the process of creating the agreement and can choose from data sources or contract clauses. In addition, they can also test security, managing transaction fees, and use monitoring tools to manage their smart contracts throughout the whole process. As a result, this eliminates the needs for people to go to lawyers to have contract papers notarized. With smart contracts, users can just drop their contractual agreement in the ledger. In its simplest form, smart contracts are instructions added to transactions on the blockchain. The advantages of blockchain is its security by design. Decentralized, the distributed computing system is potential for recording events, medical records, activity managements, transaction processing, documenting process, traceability and more.Principally everybody can be a miner. Since a decentralized network has no authority to delegate this task, a cryptocurrency needs some kind of mechanism to prevent one ruling party from abusing it, Imagine ‘someone creates thousands of peers and spreads forged transactions. The system would break immediately. So, Satoshi set the rule that the miners need to invest some work of their computers to qualify for this task. In fact, they have to find a hash -a product of a cryptographic function - that connects the new block with its predecessor. This is called the Proof-of-Work. In Bitcoin, it is based on the SHA 256 Hash algorithm, my lisa as You don't need to understand details about SHA 256. It’s only important you know that it can be the basis of a cryptologic puzzle the miners compete to solve. After finding a solution, a miner can build a block and add it to the blockchain. As an incentive, he has the right to add a so-called coinbase transaction that gives him a specific number of Bitcoins. This is the only way to create valid Bitcoins. Bitcoins can only be created if miners solve a cryptographic puzzle. Since the difficulty of this puzzle increases the amount of computer power the whole miner's invest, there is only a specific amount of cryptocurrency token that can be created in a given amount of time. This is part of the consensus no peer in the network can break pooly tablets pops tay sticks dain lege Oo oO OO t WHAT IS A DISTRIBUTED LEDGER? Ledgers, the foundation of accounting, are as ancient as writing and money. Their medium has been clay, wooden tally sticks (that were a fire hazard), stone, papyrus and paper. Once computers became normalized in the 1980s and "90s, paper records were digitized, often by manval data entry. These early digital ledgers mimicked the cataloguing and accounting of the paper- based world, and it could be said that digitization has been applied more to the logistics of paper documents rather than their creation. Paper-based institutions remain the backbone of our society: money, seals, written signatures, bills, certificates and the use of double-entry bookkeeping. Computing power and breakthroughs in cryptography, along with the discovery and use of some new and interesting algorithms, have allowed the creation of distributed ledgers.In its simplest form, a distributed ledger is a database held and updated independently by each participant (or node) in a large network. The distribution is unique: records are not communicated to various nodes by a central authority, but are instead independently constructed and held by every node. That is, every single node on the network processes every transaction, coming to its own conclusions and then voting on those conclusions to make certain the majority agree with the conclusions. Once there is this consensus, the distributed ledger has been updated, and all nodes maintain their own identical copy of the ledger. This architecture allows for a new dexterity as a system of record that goes beyond being a simple database. Distributed Ledgers are a dynamic form of media and have properties and capabilities that go far beyond static paper-based ledgers. For more on this, please read our guide "What Can a Blockchain Do?" For now, the short version is they enable us to formalize and secure new kinds of relationships in the digital world, The gist of these new kinds of relationships is that the cost of trust (heretofore provided by notaries, lawyers, banks, regulatory compliance officers, governments, etc.) is avoided by the architecture and qualities of distributed ledgers. The invention of distributed ledgers represents a revolution in how information is gathered and communicated. It applies to both static data (a registry), and dynamic data (transactions). Distributed ledgers allow users to move beyond the simple custodianship of a database and divert energy to how we use, manipulate and extract value from databases — less about maintaining a database, more about managing a system of record.WHO IS SATOSHI NAKAMOTO?While we may not know who he (or she) was, we know what he did. Satoshi Nakamoto was the inventor of the bitcoin protocol, publishing a paper via the Cryptography Mailing List in Novernber 2008. He then released the first version of the bitcoin software client in 2009, and participated with others on the project via mailing lists, until he finally began to fade from the community toward the end of 2010. Nakamoto worked with people on the open-source team, but took care never to reveal anything personal about himself, and the last anyone heard from him was in the spring of 2011, when he said that he had “moved on to other things”. But he was Japanese, right? Best not to judge a book by its cover. Or in fact, maybe we should. “Satoshi” means "clear thinking, quick witted; wise”. “Naka” can mean “medium, inside, or relationship”. “Moto” can mean “origin”, or “foundation”. Those things would all apply to the person who founded a movement by designing a clever algorithm. The problem, of course, is that each word has multiple possible meanings. We cant know for sure whether he was Japanese or not. In fact, itS rather presumptuous ‘to assume that he was actually a ‘he! Wete just using that as a figure of speech, but allowing for the fact that this could have been a pseudonym, ‘he'could have been a ‘she! or even a ‘they’ Does anyone know who Nakamoto was? No, but the detective techniques that people use when guessing are sometimes even more intriguing than the answer. The New Yorker Joshua Davis believed that Satoshi Nakamoto was Michael Clear, a graduate cryptography student at Dublin's Trinity College. He arrived at this conclusion by analyzing 80,000 words of Nakamoto online writings, I searching for linguistic clues. He also suspected Finnish economic sociologist and former games developer Vili Lehdonvirta. Both have denied being bitcoins inventor. Michael Clear publicly denied being Satoshi at the 2013 Web Summit.‘Adam Penenberg at FastCompany disputed that claim, arguing instead that Nakamoto may actually have been three people: Neal King, Vladimir Oksman, and Charles Bry. He figured this out by typing unique phrases from Nakamoto$ bitcoin paper into Google, to see if they were used anywhere else. One of them, "computationally impractical to reverse,” turned up in a patent application made by these three for updating and distributing encryption keys. The bitcoin.org domain name originally used by Satoshi to publish the paper had been registered three days after the patent application was filed. It was registered in Finland, and one of the patent authors had traveled there six months before the domain was registered. All of them deny it. Michael Clear also publicly denied being Satoshi at the 2013 Web Summit. In any case, when bitcoin.org was registered on August 18th 2008, the registrant actually used a Japanese anonymous registration service, and hosted it using a Japanese ISP. The registration for the site was only transferred to Finland on May 18th 2011, which weakens the Finland theory somewhat. Others think that it was Martii Malmi, a developer living in Finland who has been involved with bitcoin since the beginning, and developed its user interface. A finger has also been pointed at Jed McCaleb, a lover of Japanese culture and resident of Japan, who created troubled bitcoin exchange Mt. Gox and co-founded decentralized payment systems Ripple and later Stellar. Another theory suggests that computer scientists Donal O'Mahony and Michael Peirce are Satoshi, based on a paper that they authored concerning digital payments, along with Hitesh Tewari, based on a book that they published together. OMahony and Tewari also studied at Trinity College, where Michael Clear was a student. Israeli scholars Dorit Ron and Adi Shamir of the Weizmann Institute retracted allegations made in a paper suggesting a link between Satoshi and Silk Road, the black market web site that was taken down by the FBI in October 2013. They had suggested a link between an address allegedly owned by Satoshi, and the site. Security researcher Dustin D. Trammell owned the address, and disputed claims that he was Satoshi, In May 2013, Internet pioneer Ted Nelson threw another hat into the ring: Japanese mathematician Professor Shinichi Mochizuki, although he admits that the evidence is [orm at best. In February 2014, Newsweeks Leah McGrath Goodman claimed to have tracked down the real Satoshi Nakamoto. Dorian S Nakamoto has since denied he knows anything about bitcoin, eventually hiring a lawyer and releasing an official statement to that effect.BLOCKCHAIN INSIDER PAGE 26 Enterprise Blockchain Solutions on Hyperledger Fabric Today. at the Distributed: Health 2017 conference in Nashville, Tennessee, Change Healthcare announced blockchain solutions According to the ‘company, which is one of the major independent healthcare technology providers in the U.S. the utilization of blockchain technology will help their clients in boosting revenue cycle efficiency, improving real-time analytics, cutting down costs and creating “innovative new services.” onan enterprise se Using the organization’ Intelligent Healthcare Network, Change Healthcare processes12 billion transactions covering over $2 trillion in claims annually. Change Healthcare CEO Neil de Crescenzo stated that the company is working together with both customers and organizations, such as the Linux Foundation's Hyperledger Project, to make access to blockchain technology —and the benefits of the tech —and to develop “additional, advanced use “We are excited to work alongside our customers and partners to make blockchain real in healthcare. ‘As today’s healthcare system becomes more value- based, it's essential that we aggressively and pervasively introduce new technologies into healthcare at scale ~ whether they leverage bblockchain, artificial intelligence or other emerging capabilities with the potential to improve outcomes and efficiencies. We are initially introducing bblockchain technology to create a distributed ledger that makes claims processing and secure payment transactions work more efficiently and cost effectively for all healthcare stakeholders,” Mr. de Crescenzo said, “We want to make it easier and more efficient for health care as an industry to utilize this technology and make it a better experience for the consumers ‘as well as the clinicians who don't want to spend their time on the computer. Aaron Symanski, CTO of Change Healthcare, told Bitcoin Magazine. They just want to go out there and help more people every day.THE COIN UNIVERSE KEEPS EXPANDING oO Bitcoin has had a record year, but it's not the only coin worth watching $5,000 $2500 With the bitcoin price up a stunning - $2,000 over this time last year, , 000 the cryptocurrency is at the center of conversation again. aisoul Fear eM eRe nt aerate soe scarce ne ek eseneeate about 4.6% of mrkat cptalaaton Below are some of te feral” $00 ised woratey came ten JULIE OCT "6 JANT “APR 7, mu $ ‘THE CRYPTOCURRENCY UNIVERSE we Tey] vosecon oe $12.68 aye) $5 eons $218 _ $1.28 $40.5B $188 cen ma ene oo, $10.58 a $25.78 MUSHROOMING 4 ‘COIN VALUES 4 cryptocurrencies experienced gains seals Weyerhaeuser 2016, and thelr ie combined vabaton Coy Is beginning to rival some of America’s : largest corperations. $97.3B $96.2BINSIDE VIEW oa See TAU) ITU ol aaloy ean ees mons RIGHT © 2017, SFI BLOCKCHAIN TECHNOLOGIES LIM#TED)