It just feels like we hear something new about cryptocurrencies everyday, but let us delve into the concept of ‘Cryptojacking’ in this post. Having blogged about cryptocurrencies and blockchain before, here are a few facts about them:
Since bitcoin is based on the blockchain concept, where there is no central authority directing the stakeholders(or miners in Blockchain/Bitcoin lingo), the only way a new block(FYI – a ‘block’ is where transactions are recorded) can be created and agreed upon is by means by of mathematics. This is called ‘mining’, which uses humongous amount of energy. Bitcoin mining can be done by simple software and specialized hardware.
Bitcoin’s current electricity consumption is 46.74 TWh!!(Terawatt hours) (Source: https://digiconomist.net/bitcoin-energy-consumption) To put this into perspective, according to one study in April 2018, Bitcoin’s energy consumption numbers were equal to the energy consumption of an entire country like Switzerland! (Source: https://www.forbes.com/sites/shermanlee/2018/04/19/bitcoins-energy-consumption-can-power-an-entire-country-but-eos-is-trying-to-fix-that/#116123d81bc8)
Having understood that bitcoin mining is heavily energy intensive, we can understand that cyber criminals will look for alternate means to mine cryptocurrencies.
This alternate and malicious way to mine cryptocurrencies is by means of a concept known as ‘Cryptojacking’. ‘Cryptojacking’ unsuspectingly makes use of an innocent person’s computer, tablet, phone or any other connected device to mine cryptocurrencies. The innocent individual is lured by means of suspicious email links or online ads which then runs the mining code in the background and drains your energy for wrong purposes.
The unsuspecting user continues to use his computer/connected without knowing that his connected device is being used for malicious purposes.
They get bitcoins or any other cryptocurrency with minimal effort and electricity usage on their side. They can then use these cryptocurrencies to buy things that they wish.
The only way that we can detect if the cryptomining code is running on our computer is when the computer gets slow or gets heated up.
The current damage caused by ‘Cryptojacking’ may only be slowing down of the device but this malicious attack may evolve further with time and pose a risk to personal and financial information. According to this report from eset.com, cryptojacking may not be slowing in 2019. So, it is necessary to take note of this attack and be knowledgeable about it and guard against it.
Do blogging/writing and blockchain have anything in common? Yes – with ”Steemit’. What is ‘Steemit’? It is a blockchain based blogging platform. Imagine writing a blogpost and it being stored on a Blockchain namely the ‘Steem’ blockchain… so, next what is a ‘Blockchain’? To refresh, ‘Blockchain‘ is a distributed ledger of information with no central authority(decentralized) The most popular application of Blockchain is of course, the ‘Bitcoin’.
We have all heard about ‘Blockchain’ being used for the mortgage industry, car auction industry – but for blogging and writing content? yes, it is true – bloggers can write their content which will be posted on the ‘Steem’ blockchain and you ‘may’ even get paid for it. The ‘Steem’ blockchain is used for other decentralized applications as well like DTube (decentralized video platform), eSteem (Steem based mobile app)
‘Steemit’ is a ‘Dapp’ or ‘Decentralized application’ which was started in 2016.One can upvote, downvote,comment on other’s posts (similar to other communities but with a difference , you get paid for it and it is on a blockchain)
Depending on the number of upvotes you get, you get paid in the form of digital tokens called ‘STEEM’. Everyday, STEEM tokens are mined on the ‘Steem’ blockchain and this can be used as rewards to different users.
Other points about ‘Steemit’:
Can ‘Steem’ be converted?
Yes, ‘Steem’ digital tokens can be converted to Bitcoin or to a country’s native currency or your local bank account. You can also convert it into other cryptocurrencies.
We saw the concept of ‘writing and blockchain’ merging in this post by means of the ‘Steemit’ blockchain…join me as I uncover most interesting topics…
Disclaimer: This article is to be used for informational purposes only. With cryptocurrencies being banned in many countries including India – it is up to the user to research and make decisions on the same.
The challenges of cloud computing are easily overshadowed by the fact that the market is going through a huge boom right now. The cloud computing sector is dominated by a small number of big tech firms including Amazon Web Services (AWS), Microsoft Azure, and IBM. AWS leads the pack in market share, but all of these companies are undergoing staggering growth. AWS reported 49 percent revenue growth in the first quarter of 2018, while Microsoft said its Azure revenue shot up 93 percent.
Sounds like good news? Perhaps, but even in a booming market, the challenges of cloud computing should not be underestimated. Here, we look at how the big tech firms are struggling to keep up with demand, and how decentralization could be one of the critical enablers for cloud computing of the future.
One reason is the development of artificial intelligence (AI). AI algorithms rely on massive quantities of data. Until a few years ago, there just wasn’t the available computing power needed to run AI programs. Now, better hardware means that AI development is eating up computing power as quickly as it becomes available. One analysis showed that AI computing power consumption has doubled every three and a half months since 2012. Compare that to Moore’s Law, which had an 18-month doubling period.
Greedy AI robots ate all the computer pies. Image courtesy of Pixabay.
In light of AI’s voracious appetite for data and therefore computing power, the biggest challenges for cloud computing today are supply and demand. So as the demand increases, cloud computing providers must find ways to either increase their supply or manage the pricing to try and stem demand. They are doing both.
Cloud providers like AWS operate with tiered pricing. This model allows their clients to choose the type of computing power they need for particular jobs. AWS sells premium priced on-demand services that are always on for clients who need a continuous service. It also sells spot instances of cloud computing at variable prices. These work for clients who can queue jobs until there is available server capacity, so they can spend less.
So imagine a software company that’s got one product up and running, and is in the process of developing another. For the live product, the company operates a web-based customer service chatbot for its clients. For the product under development, they need to run some tests but they are fairly flexible in when the tests can be run as they can just queue them to run overnight if needed.
This company buys an on-demand service for its chatbot, so the bot is always available for their clients. For the developing product, they bid on spot instances. They stipulate the maximum limit they will pay for the server capacity. Their cloud computing provider prices server availability according to real-time demand. Once the price of computing power falls below the threshold value our software company has set, their test jobs start to run. If demand goes up partway through a job, the price increases again and their provider diverts power elsewhere.
The client saves up to 90 percent over the premium on-demand price by using the spot instances for flexible jobs. However, not all clients are able to be so flexible with their computing power needs. Plus, this solution only manages existing demand, it doesn’t address the massive growth in demand.
Cloud computing providers run on data centers. So, to address the capacity challenges of cloud computing, a provider can just build more data centers, surely?
They can, but data centers demand huge supplies of energy. One report from 2016 estimated that the world’s data centers had used more energy than the entire UK in the preceding year. It also highlighted a Japanese study that estimated that data centers in the country would consume the entire national electricity supply by 2030 if growth continued uninterrupted.
So, just building more data centers can’t be the only solution.
Decentralization could offer a solution. Distributed networks of computers could work together to provide idle capacity to those in the network who are prepared to pay for it. So, say you own a GPU for mining cryptocurrencies, but you aren’t using it right now. Perhaps Bitcoin mining has become unprofitable in the depths of a price slump. You could put that GPU to use on a distributed cloud computing network. Someone would pay you in digital tokens so that they can use your GPU power to help drive their AI development testing.
DeepBrain Chain is one of the blockchain projects that is aiming to achieve this and is targeted directly at the burgeoning market for AI computing power. In DeepBrain Chain, anyone can earn tokens by contributing their idle computing capacity, which is sold on to AI developers.
Tatau is a similar but newer blockchain project that uses this concept of decentralized computing power for AI.
Decentralization offers a real solution to the problem of data center overdevelopment, as it doesn’t require bringing in new hardware. It’s also more flexible at managing fluctuations in capacity, as there are many smaller operators in the network. Once a data center is built, it has to be used to be efficient, whereas a decentralized computing network has more resilience to idle capacity.
This is just one scenario. Although, there could be plenty of other opportunities for blockchain and cloud computing in the future.
Quantum computing offers a further opportunity to solve the challenges of cloud computing. These computers utilize the ability of subatomic particles to exist in multiple states at the same time. A standard bit of data can only exist in one state at a time, either 1 or 0. A quantum bit, or qubit, can exist in two states simultaneously. This dual state allows them to hold vastly more data than a traditional bit.
Quantum computers could be the future of the cloud
Quantum computing is still in its early days. However, two of the cloud providers, IBM and Alibaba, have now launched their own quantum computers. One startup, Rigetti, is working towards launching its own Quantum Cloud Services. So, quantum cloud computing could be here sooner than we realize.
Cloud computing is definitely here to stay. However, the challenges of cloud computing will soon weigh upon the existing operators if they try to maintain the status quo. Of the scenarios listed here, the future will likely include a hybrid of different models including existing infrastructure, decentralized networks and quantum computers at least for a while. With AI placing ever-increasing demands on the cloud, we need these alternatives sooner rather than later.
This article originally appeared here.
Like any other system, the global economy is susceptible to failure at many different points. Unfortunately, due to the interconnectedness of the world, an economic crisis in one country could have disastrous consequences for other countries. This was the case during the United States economic crisis of 2008 in which the stock market crashed.
Economic collapse on any scale usually happens as a result of disparities in the system that can easily be overlooked in the absence of clarity. However, blockchain technology could help avoid a financial crisis due to its transparency, security and decentralized mechanism. Cryptocurrencies such as Bitcoin are powered by this same technology which acts as a ledger for all transactions carried out on a network.
The endless benefits of the technology have attracted countless investors over the years. Now, it is fast becoming an addition to every major corporation, from IBM and Mastercard to Nasdaq. Its properties are also attractive to financial institutions which constitute the industry that is most in need of the benefits it provides.
The financial crisis of 2008 caused by a lack of transparency, greatly impacted various significant financial institutions and economies on a global scale. Blockchain technology affords banks full transparency, allowing them to spot such a crisis from a mile away. This way, they can take the appropriate preventive measures to ensure that it does not happen again. Banking authorities must make an effort to study the technology and better understand how it can be a force for the prevention of the next financial crisis.
The economic crash of 2008 was the worst economic disaster in the U.S. and the world since the 1929 Great Depression. The crisis caused a great recession after the cost of housing fell by 31.8%, even lower than that of the Great Depression. Although the crash occurred in 2008, the first signs were observed in 2007 when the prices of homes were too high.
As a result, homeowners began to default on mortgage payments, leading to a downward economic turn which spread to the U.S. financial sector and eventually affected other countries. At the time, houses became extremely cheap, and homeowners were given loans worth up to 100% of the value of their new homes. Taking advantage of the profitable real estate sector, banks also made investments in subprime areas.
The affected institutions stretched from investment banking corporations to commercial banks, insurance companies, and lenders. The situation was so bad that financial institutions had to lay off their staff. Apart from financial institutions, the crisis affected individuals and businesses that were reliant on credit payments at the time. The economic disaster led to massive suffering on the part of businesses because banks stopped giving loans out. They did not trust anyone to pay back the loans due to the state of the economy.
Shortly after the crisis began, the American auto industry was on the edge of destruction and pleaded for a federal bailout. Unfortunately, banks were in the middle of damage control and bailouts were nearly impossible to get. Globally, share prices plunged, and the recession trickled down to other countries.
By the end of the year, most countries in the world including Germany, Japan, and China had gone into an economic recession as well. According to the National Bureau of Economic Research, the great recession had begun in December 2007, making it the third longest recession in the country since World War II.
In Europe, investors who had been involved with real estate securities in the U.S. took a hard hit. The same could be said for investors in smaller countries. However, China and Japan were able to escape that situation but registered huge losses where export was concerned. Their American and European markets were experiencing a fall in demand due to the recession.
Developing countries that depended on foreign investments for growth capital also lost their markets and investments. Since the largest countries were in a recession, the situation became a hopeless one with no chance of an easy recovery. Two years after the end of the recession, the unemployment failed to fall below 9 percent.
Banks are looking to use blockchain technology because its transparency can reduce the issue of financial losses that stem from a lack of it. There are three major ways in which the banks hope to achieve this:
When banks have a bird’s eye view of all the financial transactions within an economy, it is easier to find discrepancies and adjust them. Due to the immutability and append-only function of a blockchain, it is easy for banks to keep open records of transactions that can be tracked easily.
Tracking cash flow can help institutions find and mitigate economic threats that may arise due to bad policy and bank operations. Using this technology, the banks can determine whether a financial institution, including shadow banks, requires support or control.
Another way that blockchain technology promotes financial security as a way to prevent an economic crisis is by providing access to information. With this information, these institutions can determine risks and potential points of failure within the system. It can also clarify the effects of various monetary policies and help out in the gathering of statistics for research purposes. Generally, if the banks have more information, then they can perform better and cut the costs associated with running separate systems as opposed to a single blockchain.
Banks can prevent fraud and bad debtors using smart contracts and digital cryptographic identities. Each institution can create smart contracts between the customers and banks, as well as between the banks and the central bank. This creates an immutable record of the exact terms of the contract and will only execute when the terms are fulfilled. Banks can also avoid loan fraud by using digital identities to find out the loan history of each customer, drastically lowering the chances of bad debt in the process.
The use of a cryptographic ledger ensures that stored information can only be accessed using cryptographic keys which are usually in possession of the owner of that information. A hacker would have to compromise every single system on a network to break such a system. This makes blockchain a secure way to store information.
According to the People’s Bank of China, shadow banking falls into three main asset classes– entrusted loans, trust lending, and banks’ acceptances — which saw a $555 million increase in 2017. Using blockchain technology, banks can eliminate shadow banking since all transactions will be recorded.
The financial crisis of 2008 left many nations utterly devastated. The trickle-down affected various sectors even outside the financial sector, resulting in a near collapse of the economy. However, the world moved on from the effects of that event, and most countries have been able to pull themselves out of recession. However, it is essential to take measures that ensure that the crisis is not repeated.
For banks, the best bet may be the use of blockchain technology to securely store data, access information and ensure transparency in the system. Used properly, it can serve as an open system in which all transactions within the economy are recorded. With a clearer view of all banking processes, banks and other financial institutions can successfully prevent another economic crisis.
This article originally appeared on Mintdice.com
Just like Bitcoin, which is highly known, ‘Ethereum’ is yet another open source implementation of the Blockchain concept. However, the similarity between ‘Ethereum’ and ‘Bitcoin’ ends just there. While ‘Bitcoin’ is a cryptocurrency, ‘Ethereum’ is a decentralized network for implementing ‘Smart contracts’. Recall, that ‘smart contracts’ are similar to normal contract clauses, but are automatically enforced without any interference from third parties.
The ‘Ethereum’ logo was first used in 2014 and the project was live on 30th July 2015 – so, it is an absolutely brand new blockchain concept! The ‘Ethereum’ idea was first conceived by Vitalik Buterin.
Now moving onto the article, the basic idea behind the blockchain technology is the different nodes agreeing on transactions and having the same copy of the transaction. Instead of all the nodes in a network agreeing on the the coins moving towards and away from a user(like in a Bitcoin), in a Ethereum network, the nodes have to agree on the smart contract transactions.
So, what can we do with a Ethereum blockchain?
Have an idea for an application? You can get it deployed on the ‘Ethereum’ blockchain. It is no longer a huge chore to build blockchain applications and definitely much more easier to get applications deployed on the Ethereum blockchin.
You can create your own cryptocurrency, voting ballots, crowdsale or any idea of for a decentralized application without feelings and human emotions entwined in it. For more information about creating your own decentralized applications on the Ethereum blockchain please visit: https://www.ethereum.org/
To conclude, here are a few terms associated with ‘Ethereum’:
It should be noted that Ethereum is another rapidly evolving technology. How the world will react to it and how the governments will react to it is left to be seen. This article is largely for informational purposes only!
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Reading Time: 2 minutes Blockchain, AI and machine learning are the latest buzzwords in the IT industry. Building a blockchain is also becoming a need for various businesses. Recall, that a “Blockchain” is the distributed shared ledger for recording and storing transactions. Each of the participant in the business network has a copy of the ledger which is updated regularly.
Before building a blockchain, there are a few keywords that have to be mastered and we will discuss them today.
Reading Time: 2 minutesBlockchain is the distributed, shared ledger system with no central authority. We have all encountered ledgers in our lives. We have our own personal ledgers for keeping track of transactions. But in the case of a large business scenario, the number of transactions is huge. The number of people keeping track of those very transactions is huge too. Each person involved in the business might have their own version of transactions. Blockchain solves this problem by each ‘node’ having their own copy of the ledger.
Reading Time: 1 minuteThe Blogchatter A to Z has kicked off and I start off my set of posts primarily around the theme of technical and personal posts. My latest fascination has been ‘Blockchain’ and I am striving to do my technical posts around my latest interest.
‘Blockchain’ is the common shared digital ledger that every participant in the business sees. In the Blockchain world, any thing that has value is called as an ‘Asset’. Assets are sold and bought and these are recorded on the Blockchain ledger. Asset is the key aspect of Blockchain.
Assets are further classified into tangible assets and intangible assets. Tangible assets are those that can be seen and visualized. Examples of tangible assets are car, motorcycle, house.
Intangible assets are those that are abstract and cannot be seen but they play an equally vital part in the blockchain cosmos. Examples of intangible assets are mortgage, patent, trademark.
Cash is yet another form of ‘asset’ but it is completely anonymous. We cannot track its movements. We don’t know who we received it from and where it will go next.
We discussed ‘Asset’ in the Blockchain world. Drop by tomorrow as I continue my ‘Blockchain’ journey…
Reading Time: 3 minutesEven as the concept of ‘Blockchain’ is bouncing off everyone’s radar and everyone is keen to know more about this trending topic – let us see more about this new and emerging technology.
‘Blockchain’ is popularly associated with ‘Bitcoin’ cryptocurrency. The Blockchain system shot into prominence and more industry experts took notice of it only after Bitcoin’s surge and ultimately its downfall!
‘Blockchain’ as you might recollect from my earlier post is the shared ledger system. Each transaction is recorded and added to the shared ledger after being approved by the ‘miners’. The beauty of ‘Blockchain’ is that each miner or node has a copy of the transaction. None of the transactions can be modified or deleted.It allows total transparency of the system with no central authority and promises complete anonymity and security.
Reading Time: 2 minutesIt seems every other day has a new headline regarding ‘Bitcoins’. I am sure most of us give a casual glance at this word and wonder where it will go next. From a humble value of $1019 on January 1,2017 the value of Bitcoin has soared to $16,860 till date. This type of meteoric rise will obviously roll a few eyes! 🙂
I had already written about Bitcoins in my earlier post “Introduction to Bitcoins“. Let’s refresh briefly:
What is Blockchain?
‘Blockchain’ is the underlying technology that supports Bitcoin. In simple terms, blockchain is a global ledger. Sending and receiving bitcoins are some example of transactions. A group of transactions will be considered as a ‘block’ which when approved is added to the ‘chain’. This chain cannot be deleted or changed. It is continously added and maintained by all nodes in the network.
Without a regulating authority like a bank, ‘blockchain’ has kept the Bitcoin journey alive for the past 8 years!
Future of Bitcoin:
I am no Bitcoin analyst and I do not have the crystal ball, but I can certainly state a few things! 🙂
Whether the cryptocurrencies will stand the test of time, the underlying blockchain technology will definitely shake things up in the technology world and will most likely outlive ‘Bitcoin’!
Most of the world’s top universities including Stanford university, Princeton university and e-learning portals like udemy, Coursera have taken notice and started courses in Blockchain.