Tag: Bitcoin

The problem with Segwit2X for BTC owners

On By mehranmuslimiblogIn Bitcoin, BlockchainLeave a comment

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Somebody asked me the other day why there was so much heated debate over the upcoming Bitcoin fork. The other day I wrote about what might happen after the fork, but I’d like to clear up some of the confusion over why the fork is happening and why there is something of a turf war in the Bitcoin camp.

However, as I started to write this, a ‘breaking news’ item flashed across my screen from one of the crypto exchanges that I use. It announced that the leaders of the Segwit2X have suspended their plans indefinitely. As a result, Bitcoin shot up in value just after the announcement to touch $7,800, although it has since decreased in value to around $7,300. It seems to have boosted other coins as well, with Dash and Ethereum both showing some impressive gains; ETH has finally gone past the $300 mark.

But, back to the Segwit2X hard fork war. If a truce hadn’t been reached, what might have happened?  The first issue is that there would have been two types of BTC and who would decide which was the ‘real’ one and which one would be allowed to use the well-known BTC ticker symbol. It’s a bit like kings fighting for a crown and one claims they are the real king and the other is the usurper. We’ve seen what happens in history when this situation arises. There is always a war and supporters decide which side they are taking. This is what we’ve been watching within the BTC community.

But, it would have meant a payout to existing BTC holders. For example, Coinbase, one of the biggest exchanges announced that it would give every user BTC2x coins to match the amount in their BTC wallet. It sounds like ‘free money’, but, there is a downside.

In the past there have been other forks for Bitcoin Cash and Bitcoin Gold, but nobody considered those as replacements for the original Bitcoin. However, many thought the Segwit2X fork would pitch the new coin against the original and therefore damage the value of the original BTC. That doesn’t sound so good for people who are holding BTC.

Thankfully, this has now become hypothetical again and the original Bitcoin remains the only one. Perhaps Segwit2X will never happen, although in the world of crypto currencies, you can never be sure what is coming next.

 

 

What will happen after the Bitcoin fork?

On By mehranmuslimiblogIn Bitcoin, Tech2 Comments

 

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We are only days away from one of the biggest events in Bitcoin’s history – the Segwit2x fork that will happen around 16th November. Needless to say there is a lot of discussion in the crypto press about what this will mean for the leading digital currency.

In the last week we have seen Bitcoin’s value shoot up to a new record high and then correct itself; a series of movements that is typical of the various crypto coins. We have also seen a number of companies in the financial mainstream talking up the use of cryptocurrencies and blockchain, which has energised the market, but the introductions of Segwit2x is a step that for many is one into the unknown.

So far this new technical roadmap for Bitcoin seems to have support from its miners, but nobody is sure whether this November fork will change the code for existing Bitcoin, or whether it will lead to a new coin. Some are already talking about Bitcoin 2x, indicating that this is the route they think it will take.

It is of course one of the largest changes to the platform that has ever taken place, so it is uncharted territory and there are commentators who point out that previous forks have created unforeseen changes for users and investors. Consequently, there is some apprehension about the fallout after Segwit2x.

What is Segwit2x?

What is Segwit2x? Coindesk describes it as, “ both a proposal that seeks to change Bitcoin’s technology and a formal written agreement reached between certain parties interested in that change.” It also represents something that we haven’t seen on the blockchain before and it has its supporters and dissenters.

For or against Segwit2x?

Because Bitcoin is an open-source protocol, it relies on a group of volunteer and startup-sponsored developers to fix bugs, propose changes and maintain operations. This group are not in favour of Segwit2x and have been saying they have nothing to do with it for months. The miners – these are the people who solve the algorithms and approve transactions haven’t said very much. Originally they supported the fork, but now they appear to have less confidence in it. If they don’t support it, this could contribute to the outcomes of the fork.

Startups are the ones who are giving it the strongest support, because they use the Bitcoin protocol to offer services to their customers. They have the most ‘real life’ interaction with the technology and they are optimistic about how changes to the blockchain will correct any concerns users have about scalability. However, even they are preparing for worst-case scenario.

 

It seems that we will have to wait until the fork actually happens, because it’s impossible to make a prediction. Some say it is doomed to fail, others that it makes no sense: I say wait and see. We’ll know the truth before the end of November.

 

 

 

 

 

Everybody loves blockchain

On By mehranmuslimiblogIn Blockchain, FintechLeave a comment

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For some time, pretty much all discussions about blockchain have focused on Bitcoin and Fintech. These debates have centred around the future of Bitcoin as a currency and whether or not blockchain would really become the main platform for Fintech. The discussion has finally moved on, because there has been an explosive growth in blockchain over the last year, and its increased used across a swathe of industries certainly indicates that any questions about whether it is her to stay or not have been answered in he affirmative.

For a start there is now a whole host of blockchain crypto products. Bitcoin has plenty of company now on the crytpocurrency exchanges and major banks are adopting blockchain technology, because it is seen as cost effective and secure when compared to traditional banking methods. Plus, peer-to-peer payment systems continue to grow, enabling individuals to send money across borders instantly at relatively low fees.

But banking isn’t the sector where blockchain has made a somewhat surprising impact. Real estate businesses are using blockchain platforms for record keeping and for streamlining the buying and selling process as well as making it more secure.

Charities are also using blockchain to ensure that funds go where they are supposed to; this issue had dissuaded some donors from giving, but with blockchain platforms like BitGive, which is a transparent and traceable donation platform, donors can actually monitor their donations to ensure that the money gets to where they want it to go.

In the music business, individual artists have suffered losses of income through free streaming and downloading of music. Streamspace is a blockchain platform where artists can distribute their products directly to their fans in a secure manner, thereby ensuring that they get adequately compensated for their work.

Education is another area that is expanding its use of blockchain. For example, education certificates are verifiable documents that should never be altered or manipulated, but cases of forgery are all too common. To prevent this, certain schools and colleges, have started publishing students’ certificates on the blockchain. Because of this, the authenticity of such document is not in doubt as the data represented becomes secure and immutable.

The list can go on, as almost every industry is experiencing the inevitable implementation of blockchain solutions. That’s one reason for the incredible rise in the number of ICOs, as the blockchain industry needs to raise funds to develop products. And the blockchain makes it easy as the entrepreneurs can raise funds from almost anyone in the world. You could say that the blockchain is powering the development of its own ecosystem – undoubtedly we’re going to see even more blockchain-backed products in the near future.

 

 

5 Things To Consider About Fintech

On By mehranmuslimiblogIn Digital Innovation, Fintech, ICO, Initial Coin Offerings1 Comment

Technology is more integrated in business practices now, but Fintech is a concept that is just taking hold and revolutionising financial processes. It often seems to me that there is some confusion about what it is and what it really does and for business owners there are questions about whether Fintech platforms are right for their business.

Some of the information published about Fintech, so in an attempt to clarify what it is and what it can do, let’s look at some things to consider before you adopt it.

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What is fintech?

It’s just another type of technology. There is nothing mysterious about it. Some people seem to think that it is just about Bitcoin, but that is not quite true, it is also technology that enables mobile payments for example. So, it has a lot of applications.

Will it work with your existing technology?

When you are adopting new technology, such as a payments method, you need to be aware they won’t magically fix existing problems with your older systems. Before committing to a particular software platform or tool, make sure to investigate how the new tools will work with your existing IT infrastructure.

Increase your IT security

When you decide to use a Fintech tool, be aware that you are making more of your business information available digitally. This makes it easier to access client data and respond in real time, which will improve your business. On the other hand, because more information will be available online, you should boost you IT security to deal with this.

Make sure the Fintech is supported

When you choose a Fintech platform, make sure it comes from a stable company that isn’t going to disappear and leave you without support. Otherwise you might find that you have spent time and money on a product, only to find it has become obsolete quickly, or there is nobody to provide answers when there are problems.

Don’t get hung up on Bitcoin

Because so many people are convinced that Fintech is only about Bitcoin they haven’t explored the full potential of this new technology. The focus on Bitcoin, which is just one way of using a decentralised blockchain, has steered some businesses away from Fintech because it makes them nervous.

Keep an open mind about this new field, because it is going to be one of the most talked about topics in the coming years, and it is predicted that just about every business will eventually be using Fintech in some form.