Future Use Cases for Blockchain Technology: Proper Decentralized Crowdfunding

Crowdfunding is a way of decentralizing project funding by people who have creative ideas or have come up with a new product. Developing a prototype of this idea is time-consuming and usually paid out of the creator’s own pocket. Taking the idea or product mainstream requires additional funding, and rather than sticking to one or a handful of investors, crowdfunding is a preferred option. At the same time, the current model of crowdfunding is centralized, and blockchain technology can help decentralize the decentralization of funding.

The Centralized Way of Crowdfunding Today

Over the past few years, crowdfunding has become more and more popular for the everyday consumer. Even though there are still a lot of people who view backing a crowdfunding campaign as a cheap way to get a hot new item, the genuine interest in the projects is there. Every day, more and more crowdfunding campaigns go live, but not all of them reach their intended goal.

It should come as no surprise then that various crowdfunding platforms have come into life, so that project creators can be connected to potential investors. The beautiful thing about crowdfunding campaigns is that every individual can become an investor in the project, without having to spend thousands of dollars. Even the smallest contributions matter, and help the creator(s)r each their goal.

In return for pledging their funds to a crowdfunding campaign, individual investors will be eligible for rewards, either in digital or physical form. Backing a movie project, for example, will most likely include backer rewards such as a digital download of the movie, a DVD, posters, or even a mention in the credits at the end.

But there is a downside to the way crowdfunding campaigns are being conducted right now. There are only a handful of websites to host projects, which is leading to centralization of the entire crowdfunding idea. In fact, this is in stark contrast to the idea of creating a project backed by many individuals, rather than a handful of investors.

Platforms such as Kickstarter, IndieGogo and GofundMe are making all the headlines when it comes to decentralized project funding, yet in their own way, all of these platforms are centralizing the ideology of crowdfunding. Unlike most Bitcoin exchanges, or centralized traditional financial institutions, none of these platforms holds funds in advance. Money will only change hands if and when the campaign reaches its intended goal, after which card payments will be processed by third-party companies.

There are several issues with crowdfunding campaigns as well though. Nearly half of the funded projects never completes their goal of developing a physical project for the masses, yet collects all of the pledges regardless. For the investor, there is no way to charge back the money, as the chargeback grace period expired.

If there is one thing that is abundantly clear, it is that crowdfunding campaigns are a positive trend, yet they lack the transparency required towards their investors. This is where blockchain technology, with its transparent nature, could play a pivotal role in the evolution of crowdfunding.

Blockchain Technology Provides More Transparency

Platforms where creators can post their idea and raise money through crowdfunding can greatly benefit from implementing blockchain technology into their ecosystem. Not only will all investors be able to see when and where the raised money went to, but the blockchain can also be used as a bookkeeping tool.

Doing so would instill confidence in the creators of projects,a s they have nothing to hide and are willing to be open regarding how funds is being allocated. Additionally, it could use serve as a way to share project progression with the people who pledged money to the campaign, by using blockchain technology as a way to send and transfer data.

Last but not last, the blockchain can also be used for direct communication between project developers and individual investors. Rather than relying on centralized crowdfunding platforms to post campaign updates, blockchain technology allows for transparent and real-time communication between all parties.

What are your thoughts on using blockchain technology for crowdfunding campaigns? Do you see additional benefits to doing so? Let us know in the comments below!

Images courtesy of Chicago Tribune, Rude Bagette and Alphr

Cryptocurrency Constitutes Money, Regardless of Belief

“Bitcoin is not money.”

This phrase represents a common bromide marshaled against digital currencies. People see Bitcoins as worthless wisps of air, which are only good for buying items in online games, or drugs from digital markets. “They are not real,” say skeptics—but the people who make these arguments have not studied digital currencies closely, so they commit an error in reasoning.

People use cryptocurrencies to buy all manner of items. Major retailers accept them, including Overstock, Tiger Direct, Memory Dealers, and Expedia. If Bitcoins are valueless and not real, why do retailers’ take them? The evidence suggests that these monies have value, which exposes problems with the belief that they are pseudo-currencies.

In a 2013 article called Bitcoin is not Real, Jeffrey Tucker cites the growing use of Bitcoin in Argentina as evidence.

“Consider the case of Argentina, which right now has extreme capital controls, price controls, and serious inflation. It also happens to be the country with the highest rate of Bitcoin adoption of any country on the planet. Everything including rents and land prices is being quoted in Bitcoin. It is being bought in order to be held, and only later used for more purchases. In other words, it is being used as money.”

The Stockholm Syndrome Acceptance of Fiat

Just because Bitcoins are digital does not imply they are fake or useless, as some would have people believe. Most fiat currency units are stored digitally in computer systems, and the majority of transactions occur across a network. Bitcoin is just the next logical step in digital payment and storage. People that desire only tangible currency do not understand the benefits of cryptography and distributed networks. The power of these tools has brought digital money, and other applications to the forefront of civilization and they are now some of the most powerful technologies existing in terms of utility and disruption.

Furthermore, the claim that objects cannot be money unless a government authorizes them is bogus. If a ruling authority does not give people permission to use an item as money, then it is not money, contend government apologists. 

Besides the fact that this argument panders to interests of the ruling elite, there is nothing writ large that says people must have permission use a medium of exchange. This non-argument is a psychological problem. It has its roots in Stockholm syndrome, which means people are merely apologizing for the evils of their masters. In truth, people can use whatever they want for money, regardless if someone says no and scribbles it on a piece of parchment. People do not have to suffocate under the myth that money must materialize from within the halls of power. Bitcoin is proof to this. 

The Five Properties of Money  

People tend to make all these complaints about digital currencies not being money, but they also do not know how to define or accurately describe money. So what exactly is it?

Money is a medium of exchange. It is a unit of value that acts as a signature of wealth. Money can operate in this capacity regardless if it is digital or physical, as long as it possesses key characteristics. That is: it is divisible, transferable, scarce, valuable, and fungible.

If money is divisible, it can easily be broken down into smaller denominations to facilitate trade and payment of a debt. When people used to barter, it wasn’t exactly easy or clean to break their slain wild boar down into divisible parts for exchange.

Transferable means the money can easily change hands without being cumbersome. Trying to transfer chunks of wild boar would not be ideal for various reasons, including its capacity to rot and smell awful.

Scarce means money is not abundant. It is difficult to obtain, and thus it retains its value. If money were not scarce, it would lose its perceived worth. For instance, if pebbles were considered money, they would not be worth much because of their excess, which hinges on the perception of value.

Value denotes that people ascribe worth to money. Value is difficult to discuss because it is abstract. Things have value because people believe they are worth something, which is also called the subjective theory of value in economics. Perception of value appears to change based on all the properties of money.

Fungible refers to monies ability to substitute units for the same unit without hassle. If the object didn't meet this criterion, it would not be able considered good money. No one can substitute smaller units of wild boar for the same one because organic matter alters in appearance and turns bad after a period. 

A Desire to Possess Cryptocurrency

These are the root characteristics of money, and Bitcoin meets every qualification. It is highly divisible, probably the most divisible currency to ever exist. It is easily transferable via wallets and public-key cryptography. It is the apotheosis of scarce because there will only be 21 million units ever produced. And finally, it is valuable. It is valuable because people are ascribing that property to it; they believe it has worth. They are trading it, even if people deny that it is money.   

If people chose not to ascribe them value and did not transfer them with the intent of receiving something in exchange, Bitcoins would not pass the test of sound money. But money need not constrict itself to some specific form either. It does not have to be tangible. It just has to adhere to the aforesaid properties and be trustworthy, and people all across the globe have already proven this with their desire to possess and trade it. Cryptocurrency, therefore, constitutes money, regardless of the way people feel and believe. 

Is there a reason to believe bitcoin isn't money? 

Image Sources:

Geek.com

Pinterest.com

Reviewbelief.com

Future Use Cases For Blockchain Technology: Decentralized Peer-to-peer Bitcoin Exchanges

Bitcoin exchanges are the premier solution for everyday consumers to buy and sell Bitcoin in exchange for fiat currency. That being said, the current Bitcoin exchange business model makes these companies act as an intermediary, a third party, which is not what Satoshi Nakamoto originally envisioned while creating Bitcoin. That business model will need to change sooner or later, as more and more consumers are opting to use peer-to-peer exchange options.

Note from the Author: The following article refers to traditional Bitcoin <-> Fiat currency exchanges. Examples such as LocalBitcoins and Bittylicious are not included, as they already exist. The number of true peer-to-peer exchange platforms is still fairly low, which is what is being addressed below.

Bitcoin - No Middleman Involved, Except For Exchanges…?

Traditional Bitcoin exchanges are a bit of an odd creature in the world of digital currency and decentralized solutions. Bitcoin itself is a decentralized payment method, which focuses on enabling peer-to-peer transfers of value without using any intermediary or third party service. Satoshi Nakamoto wants to put the end user in full control of their finances at any given time.

However, most people use Bitcoin exchanges that embrace the “old” financial model: customers send funds to the exchange - either in fiat or BTC - which is then held in the company’s wallets or bank account. Granted, customers can trade with other users on the exchange directly, as buy and sell orders are being matched with one another.

When the customer wants to withdraw funds, though, it has to pass through the Bitcoin exchange’s wallet or bank account once again. It is clear that most Bitcoin exchanges are in fact money transmitters, rather than peer-to-peer exchanges. After all, Bitcoin exchanges have to make money somehow, and there is no way to do that without holding customer funds and taking a cut for every transaction processed.

For a long time, this business model has remained unchanged, as there has been no clear need or desire by customers to fix things when they aren’t broken. But once these Bitcoin exchanges stepped up their identity verification process and started asking for additional documents, the Bitcoin community showed the first signs of unease.

Running a Bitcoin exchange anywhere in the world is not an easy feat, as there are multiple regulatory and legislative requirements to take into account. Additionally some countries or states may require Bitcoin exchange operators to obtain specific licenses, a tedious and costly process. All of those investments have to be recouped somehow by the Bitcoin exchange, which is why there is a fee for every transaction.

That being said, the story remains the same: Bitcoin is all about a peer-to-peer transaction with no third party involvement, and it looks like the Bitcoin exchange scene will have to adapt their business model.

Decentralized Peer-to-peer Exchanges Using Blockchain Technology

True peer-to-peer platforms, such as LocalBitcoins and Bittylicious, have seen great success in recent years. The reason for that success is quite simple: there are no fees involved, and users can directly exchange Bitcoin and fiat currency with each other using the same payment methods they would use on traditional Bitcoin exchanges.

There is something to be said for conducting peer-to-peer Bitcoin exchanges, though. Granted, not all of these trades will take place in person, as walking around with pockets full of cash can attract unwanted attention. But having direct contact between buyer and seller is the way business should be done, especially now that blockchain technology is playing an ever-increasing role of importance in the world of technology.

Having no middleman or third party controlling user funds, both in BTC or fiat, leaves the customer in control of their finances at any given time. This is exactly what Satoshi Nakamoto envisioned when Bitcoin was released: everyday people establishing a market of supply and demand on their own accord, without any outside involvement.

Plus, there is another upside to peer-to-peer Bitcoin exchanges compared to their traditional counterparts. Platforms such as LocalBitcoins offer a reputation system, which gives future customers an idea of the other person's previous trading experiences. Reputation in the Bitcoin world is transparent for everyone to see, and one wrong move can tarnish years of building up credibility.


What are your thoughts on traditional versus decentralized Bitcoin exchanges? Let us know in the comments below!

Images courtesy of Mitigation Partnership, Jamie McIntyre, and QWealthReport

Future Use Cases for Blockhain Technology: Distributed Email Services

In this day and age, most consumers use email addresses on a daily basis. However, it has to be said that most of these email addresses are associated with a certain centralized provider. Internet service providers have their own email address extension, Google has one as well, and there are the university and high school email addresses as well. Yet in the end, all of them are centralized services, and the blockchain can change all of that.

Also read: Future Use Cases for Blockchain Technology: Copyright Registration

Centralized Email Address Services Prone To Government Intrusion

Regardless of which email provider a consumer uses today, all of these services are centralized in their very own way. Let’s take internet service provider mailboxes, for example, which are complementary when signing a contract with one of these companies. They offer a handful of free mailboxes to the customer, but there are strings attached that are not known to the end user most of the time.

The first issue arises in terms of the mailbox belonging to the internet service provider itself, which means they will log any and all activity occurring with those specific email addresses. For most consumers, this is not something to worry about, as they have nothing to hide. But the fact that ISPs can spy on everyday communication is a worrying fact to say the last.

Secondly, all of these internet service providers have to answer to the government of their respective country. Assuming the government would ask the ISP to turn over all information on their users, including logs of certain mailboxes, there is nothing that can be done about it. Major companies, including ISPs, have to comply with government regulation, which is a particular worry for centralized services.

But even if the consumer would pick a different email provider, they are still not out of the woods. Even popular mail services such as Google’s Gmail are subject to regulation and privacy intrusion, both from the company itself and government officials around the world. Centralized services are not safe, nor secure, and should be avoided whenever possible.

Unfortunately for the everyday email user, the number of options is fairly limited outside of using centralized services. Granted, there are offshore email providers that operate in areas where there is no governmental influence from other nations. Then again, using such a service is usually associated with criminals, terrorists, and people who have something to hide in general.

Blockchain Technology to Create Decentralized Email Service?

A solution to the problem of centralized email providers might just be around the corner. Blockchain technology, the same that powers the Bitcoin network is quite versatile in terms of what can be achieved. In fact, there are thousands of possible applications for blockchain technology outside of the financial ecosystem.

Creating a decentralized distributed email service is one of those examples. The blockchain uses wallet addresses to identify Bitcoin users on the network, and the same ideology could be applied to email services. Issuing email addresses over the blockchain, and using the underlying technology to ensure communication, could create a whole new paradigm of online communication.

Unlike centralized email service providers such as Google or an ISP, email communication over the blockchain is not subject to governmental influence. There is no centralized server farm to take control of in order to gain access to personal records, as the entire system is decentralized and controlled by the individual users and network nodes.

Granted, it will take quite some time until such a system will be developed and made available to the public. But when Satoshi Nakamoto created Bitcoin, the underlying thought has always been to push adoption of blockchain technology for all kinds of different use cases. And if Bitcoin itself can benefit from that stimulated growth, all the better.

What are your thoughts on using blockchain technology for email communication? Let us know in the comments below!

Images courtesy of Shutterstock and Gmail

Finance is for Lovers

Financial topics are generally unpleasant. They bore people. They kill excitement and cause a yawn reflex. These fields are also bogged down by esoteric math and jargon. There is nothing sexy about them—but there is something more nefarious at work. These topics cause anxiety because of the way the current system is setup and because of how most people feel about their personal finances. The structure of the system is built on a debt, and likewise most participants are mired in it. Discussing these ideas is not something that people fantasize and dream about. They just get confused and panic, so they repress the discussion.

Bitcoin is the Antidepressant of Money

Crypto-finance is changing this desperate situation. People can now enjoy finances and financial topics. They want to learn more about it. They can feel that their money is valuable. The emergence of cryptocurrency has made this possible, especially through Bitcoin, which offers fun and excitement. It is based on sound money and a sound payment system. It incites potential for innovation. But above all, it is not debt based. Bitcoin encourages happiness.

This happens because of Bitcoin’s programming. Bitcoin is decentralized and not controlled by a group of actors who can manipulate it and confuse people. Bitcoin spurs incentive to learn about its protocol and creation process. Since there is no authority confusing people with complex ramblings on a fiat system, Bitcoin beginners can rely on their own judgment and knowledge. They will actually want to venture out and gain comprehension. This fuels the discovery process, and thus people begin to manage their finances without anxiety and fear.

The Bitcoin platform is open source and transparent, too. Anyone can alter it so long as the network unanimously agrees on the change. This is ultimate democratization of finance. This simple idea sets the precedent for an enjoyable financial world, because people do not have to feel like slaves to money. They can feel free to alter the system through a process of consensus, or they can simply create their own cryptocurrency to compete for space. The current financial system is built on financial totalitarianism, where only a few currencies in a given region are heralded as the only viable option, and other currencies are potentially made illegal.

The other exiting property of Bitcoin it is its deflationary nature. Since fiat currency is debt dependent, and can be printed at will, people do not consider saving it. This makes them unhappy. Bitcoin, however, is based on a protocol that sets a limit on how many units can be put into the ecosystem, which is precisely 21 million. So people know for a fact it is valuable. This incentivizes savings. This denotes that Bitcoin is the antidepressant of money.

To learn more about bitcoin click here!

Bitcoin Gets all the Gals

It is just crazy fun learning about Bitcoin, because people know their money belongs to them and represents value. It also spurs interest in all areas of financial technology. Fiat money was just boring. It didn’t do anything to engage interest. 

Fiat money is like the guy at the bar who won’t go talk to the woman because of fear that he is not valuable enough. Bitcoin doesn’t care, though. Bitcoin is brazen because he knows he has more class and sophistication, yet he also knows he is smarter and charismatic. This means the girls will want to get involved with him immediately. They just like guys who have more value and seem to grow more vigorously, and who will be worth it in the long run. Fiat is the guy who is burned out and has a horrible job anyway. Thus, Bitcoin gets all the gals. 

A New Kind of Person

The aforesaid reasons are why society will start seeing a new breed of person emerge. This individual will be the kind of person who wants to hold money. This person will stake his life on it. It will be the kind of person who feels monetary freedom, and has interest in all areas of finance. This will not be a person who is burdened by debt, and taught that money is evil from an early age. This type of person will be a potential entrepreneur, and who will have a real grasp of economics.

Bitcoin can be purchased and used world wide.

This won’t occur because people had to teach him money, especially in the humdrum and boring way that it has been taught. It will be because he was brought forward in a different kind of economic age, where money is truly scarce, and it is something to be appreciative and respectful of. This is the person of the future, a person who will truly enjoy finance…maybe even love it.

Please read this brief introduction on Bitcoin: https://www.bitcoin.com/en/you-need-to-know
 Learn about the Fed and Fiat Money Here: https://www.bitcoin.com/en/bitcoin-news/590739302839148931-how-cryptocurrency-can-abolish-the-fed-part-1-what-is-the-federal-reserve-system

Do you think Bitcoin will spur people to be more financially savvy? 

Image Sources: 

Notbeinggoverned.com

commons.wikimedia.org large

zerogedge.com

 

Future Use Cases for Blockchain Technology: Digital ID Verification

The number of use cases for blockchain technology is nearly limitless, but there are certain aspects of life that could, and perhaps even should, benefit from this wave of innovation sooner rather than later. One of the more interesting use cases for blockchain technology is digital ID verification, which makes the entire online experience more user-friendly for the everyday consumer.

Also read: Verification Procedures Ruin Online Shopping Experience, Blockchain-Based Solution To The Rescue?

Trusting Third Parties With ID Verification Is A Bad Idea

Society has evolved in various directions over the past few years, and both online and mobile experiences are playing an ever-increasing role in our lives. That being said, most of customer internet usage still takes place near a computer, and most services and platforms being used do not scale properly on mobile just yet.

But there is a certain drawback to most of the features and platforms consumers use on a daily basis: they all need some form of verification or registration before they can be used properly. One thing that has become clear is that using just a username and password to access any service is far from sufficient these days.

Two-factor authentication is an additional step in the right direction of providing customer security, but that only protects the login part of the experience. The major problem lies with the services that require users to submit some form of verification to confirm their identity, both in the Bitcoin space and outside of the realm of digital currency platforms.

Consumers are forced to submit documents - such as an ID scan, copy of passport and even a copy of a credit card - to third party services for verification purposes. All of these documents are then stored on centralized servers, where they become a favorable target for hackers and hoodlums. For the end consumer, Identity theft is a serious problem, especially since the Internet became more and more popular.

Luckily for all parties involved, there is a solution around the corner that could solve all of the above problems while still ensuring security for both business and customers alike. Issuing identity verification through blockchain technology allows consumers to verify their identity while there is no centralized storage of identity documents involved.

Blockchain-Issued ID Verification Has Lots of Potential

Using a digital token issued on the blockchain to perform identity verification sounds simple in theory, but is a lot harder to pull off in the real world. Granted, the technology is there to be used, and it shouldn’t take a team of skilled developers too long to create a blockchain token representing a user’s identity.

In terms of using this token, the user would send that token to the service or company they are using and sign off on the transfer with their private key. Doing so would allow the customer to keep the information confidential, rather than relying on a third-party service or platform to store that data. All of the information associated with that token would only be visible for the sender and intended recipient.

To provide an additional layer of security, an oracle or escrow-type service could be implemented, where a computer verifies the customer’s identity by getting access to the ID token. Once the identity has been checked, that token is then sent back to the owner, and the business or platform is notified of a successful user verification procedure.

In a way, blockchain-based verification would bypass the need for centralized services, additional storage capacity and it could even remove the human element from the verification procedure altogether. However, there is still a lot of research to be done on how this solution could be tackled in a secure manner for all parties.

What are your thoughts on using blockchain technology for verification procedures? Let us know in the comments below!

Images courtesy of Shutterstock

Future Use Cases for Blockchain Technology: Copyright Registration

Ever since the Internet came around, one of the biggest concerns has always been regarding copyright and the impact of online piracy on the earnings of content creators. Over the years, services such as Napster and Gnutella have come and gone, resulting in people legally buying music through platforms such as Itunes, or listening to internet radio via Spotify. But despite best efforts in the fight against piracy, it remains a real threat to this very day. This is where blockchain technology could make a huge difference.

Also read: What Is Bitcoin XT & What Is Happening With Development of The Bitcoin Core

Copyright Registration Is A Strange Process

Until a few years ago, most researchers concluded that piracy only took place because people don’t want to pay for things legally, even if it is of a high quality. To a certain extent, that statement seemed to hold merit, as the “new generation” has grown up with platforms where nearly all content they want is available for free, or else they know how to get it for free.

Yet at the same time, there has been a growth in terms of “all-you-can-consume” content service providers. Netflix is a prime example of how people will gladly pay a fair amount per month to consume all the movies and tv shows they want, whenever they want, on whatever device they want. The same can be said for services such as Spotify, digital prints of newspapers and magazines, and many more services around the world.

Our society has been evolving into a creature of habit, where convenience trumps everything. All-you-can-consume services, which charge a fixed pay rate per month, are seeing great success due to that shift in consumerism. The everyday consumer wants access to the content they need wherever they are, at any time, and preferably on any device.

This brings us back to the topic of copyrighting content in a proper manner. Despite there being plenty of ways to get content legally for a minor amount per month, piracy is still a major threat to content creators. Not only is online piracy hurting the income of content creators - although the true impact will always be a topic of debate - but it also exposes some weakness in the existing copyright issuing protocol.

Depending on where an artist lives in the world, obtaining copyright for self-created content is done in various ways. Countries such as Canada, for example, will simply send a certificate by postal mail for the price of US$50, which then indicates said person has a copyright claim to the specific content. However, when it comes to exerting that copyright claim in court, a simply certificate is not always enough.

Especially when it comes to creating digital content, such as an e-book for example, it becomes incredibly hard to obtain copyright registration for that type of content. Most countries around the world will automatically apply copyright registration as soon as content appears in some tangible medium. Digital content, on the other hand, is never tangible, but that doesn’t mean copyright registration does not apply there.

Using Blockchain Technology For Copyright Registration

To make the process of copyright registration for digital content more user-friendly, blockchain technology be the key factor in solving the puzzle. Copyright registration is effectively creating a form of ownership of that content while timestamping it and then tying that record to the person/group responsible for the creation of the content.

Blockchain technology could be of great importance in this regard, as it serves as a public ledger. Contrary to popular belief, the blockchain is capable of far more than just recording financial transactions of the past, present and future. In fact, blockchain technology can be used to issue and transfer copyright registration of both digital and physical content, if so desired.

Rather than tying the copyright registration to Bitcoin - the currency - a new platform can be built on top of the blockchain. This platform could then issue a token, serving as proof of authenticity, in which a timestamped copyright registration is contained. Once that token has been issued to a certain person, it can only be transferred to someone else when the owner signs off on the transaction with their private key.

From a legal perspective, transparency in terms of copyright registration can help content creators to exert copyright claims once they see their work being pirated. Due to the blockchain’s transparent nature, issued tokens can be viewed by anyone in the world, and the timestamp attached to each token will indicate whether or not a copyright registration was in place at the time of the pirated content making an appearance.

Copyright registration by using blockchain technology will not just provide benefit to digital content creators, but to any type of media owner out there. Not just because it should, in theory, be cheaper to register the copyright on the blockchain, but also because it is far more transparent than the current infrastructure.

What are your thoughts on using blockchain technology to issue copyright registration? Let us know in the comments below!

Source: Wikipedia

Images courtesy of Shutterstock

Bitcoin To Benefit From Children Using High-end Technology At Young Age

It is no secret that children are being confronted with technological advancements at a very early age. According to a recent study, as much as 20% of American parents will buy electronic gadgets for their children when they go back to school in September. Rather than buying calculators, children will receive smartphones, tablets, and even laptops. There is a better way to target this market in terms of Bitcoin awareness than right now, as these children could very well be the future coders of blockchain technology applications.

Spoiling Children With High-end Electronics

Whether people want to admit it or not, the educational system is changing as teachers embrace technology more and more. As a result of that stance, children are being introduced to various degrees of technology at an early age in the hopes of stimulating interest in figuring out how devices work, and creating a new wave of developers.

Due to the fact that young children are confronted with these technologies, parents will need to change their back-to-school shopping habits as well. Granted, there will always be a need for backpacks, lunchboxes, and even crayons, but more and more parents are planning to purchase high-end electronics for their little progeny.

Even though these high-end gadgets are not mandatory for children to complete their classes successfully, it has somehow crept into the parents’ mindset these electronics are a must. Both tablets and laptops can have a certain level of educational use, but there is no reason for a seven-year-old to walk around the playground with a smartphone.

Various US schools are trying to ban smartphones from classrooms at an early age, as teachers feel these electronics are only distracting children. In fact, some industry experts go as far as saying that smartphones are disrupting the educational system altogether. Whether or not further regulatory measures regarding smartphones at school will have to be taken, remains to be seen, but there is certainly room for debate.

Despite the schools taking a negative stance towards the growing number of smartphones in elementary school, parents keep buying these devices for their children in order to enrich their educational experience. This is just another example of how our society has been focusing more and more on consumerism, in which everyone is pushed to buy more things at higher prices.

There is a case to be made in favor of smartphones in elementary school, though, and that is how these devices can bring an additional sense of security to the table. Children can remain in touch with their parents with a few taps on the screen, and parents can monitor their child’s location through the smartphone. However, that isn’t an excuse for the brainwashing US parents have undergone in the past five years.

Tablets and laptops, on the other hand, have a clear use case in terms of education purposes. Especially for schools looking to introduce young children to the world of coding through interactive learning, both laptops and tablets are an integral part of the process. Plus, both devices can be used to great advantage when it comes to taking notes or drawing.

Focusing Bitcoin Education Efforts on This Demographic

The saying "our children are our future” holds a lot of merit in every meaning. Especially when Bitcoin enthusiasts with a new breeding ground to spur on blockchain development.
considering the connection between young children and electronic devices that seems to become a norm more than an exception these days. Such a paradigm shift could provide

Keeping in mind these children have either a tablet or laptop at their disposal - in most cases that is - there is no better time than now to focus Bitcoin-related educational efforts on this demographic. Coding is all about having fun, and figuring out how things work while spurring a new wave of development at the exact same time.

Decades will pass before the Bitcoin community will be able to fully unlock the technological potential provided by the blockchain. In order to achieve that goal, many more developers from all over the world will need to be educated on both Bitcoin and blockchain technology. Such an educational effort could benefit from starting at a young age, as the future generation of developers will be making their way to elementary schools around the world in a few weeks from now.

Explaining Bitcoin and the underlying blockchain technology to adults is hard enough as it is, part of which can be attributed to the technology and services they have grown accustomed to since childhood. Influencing the minds of young children on how Bitcoin and the blockchain can play an important role in the lives of everyone on this planet. This might just be the boost the disruptive digital currency needs to gain mainstream adoption.

What are your thoughts on young children taking high-end electronics to school, and can Bitcoin benefit from this trend? Let us know in the comments below!

Source. CNET

Images courtesy of Shutterstock

How Cryptocurrency Can Abolish the Fed (Part 2: Disruption through Bitcoin)

Knowledge of the Federal Reserve and its effects on the economy embolden people to abolish it. The vampiric embrace central banking has maintained on society has endured for too long. Technology now exists to push humanity into the next epoch, and move away from the current state of monetary cannibalism. The tools to propel this economic reformation have arisen from underground capitalism, from online shadow markets, and from the individual desire to be socially and financially independent.

This tech is referred to as cryptocurrency. It was established without the guiding hand of authority overseeing its manufacture. It was created by cypherpunks for the purpose of escaping clumsy and heavy-handed bureaucracy. It was built to be decentralized and to evade institutional control. It was meant to be the people’s money, to liberate the populace from the oppression and corruption of State banking. It was forged to shatter financial totalitarianism, and level the playing field. It is the ultimate form of technocratic nonviolent disruption and disobedience.

The White Paper

Many different cryptocurrencies exist. The most popular is Bitcoin. It first emerged in 2008 when an enigmatic figure named Satoshi Nakomoto submitted a paper to the cypherpunk mailing list referred to as the Bitcoin white paper. In the abstract of the paper Nakomoto elaborated on his intention.

He said, “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”

A year later, this culminated in the creation of the Bitcoin software and the Blockchain that it is founded on. The Blockchain is a public ledger that documents every transaction ever made through the protocol, and publishes it transparently. The blockchain is essentially the vertebrae of Bitcoin. It gives it all its fundamental characteristics.

However, it is not readily apparent how Bitcoin is going to revolutionize finance, much less bring down the banking conglomerate and Federal Reserve system. There are several major characteristics as to why Bitcoin and its protocol have the capacity to disempower and disrupt those who wield too much control over the economic infrastructure.

The Disruptive Power of Bitcoin

The underlying disruptive power of Bitcoin is simple yet elegant. Decentralization represents the mainstay of this tech. It does not rely on central planners. It is automated. It is programmed to spit out a limited number of Bitcoins over the course of years. The implications of this are huge. There will never be a crypto-authority, or a few guys sitting in a room deciding what is best for people, economy, or country. This is why the technology puts a check on human corruptibility, and invalidates the Federal Reserve.

Bitcoin is peer-to-peer. Transactions only occur between the people directly involved or chosen. There is no middleman. No institutional stranglehold. People no longer have to rely on a third party. They can send their money to each other without going through an organization. People can essentially debank, or become unbanked. Or looked at another way, they become their own bank. They are the masters of their own money. They do not have to worry about having their accounts frozen either. No one besides users have access to their funds. This removes the possibility of institutions stopping transfers or confiscating money.

Bitcoin represents the height of computer functionality insofar that it is also tamper resistant. If a group of tyrants or banksters wanted to access the money supply and control it for themselves, they could not accomplish this easily. The Bitcoin protocol is distributed over a large network and operates with many computers. This increases the strength and flexibility of the network, which deters hackers and tyrants. In its current State, it is almost impossible to acquire the computational power to successfully hack the protocol. Several security experts and professionals have already tried. They openly admitted failure.

As an aside, it is true that Bitcoin exchanges such as Mt. Gox have been hacked, but it was not the Bitcoin protocol itself that failed--only Mt. Gox's servers. The protocol is currently resistant to outside threats because of its size. Bitcoin's distributed nature is what makes it astoundingly resistant.

Targeting the CEO

The aforesaid reasons are why the Fed cannot deal with cryptocurrency on a practical level. Usually, when someone tries to compete with the Federal Reserve and government, they simply get arrested for counterfeiting or another bogus charge. Bernard Von Nothaus was a monetary architect who created the Liberty Dollar. His money was backed by gold, and it looked "authentic." This caused it to gain popularity. Shortly after, the Feds caught on. They arrested Nothaus for alleged domestic terrorism and then confiscated his money. He ended up getting a light sentence and not going to prison, but he lost all his revenue.

This can never happen to Bitcoin. Since the system is decentralized and no one person controls it, the State cannot just issue a warrant and arrest a CEO for "domestic terrorism" or counterfeiting. There is no central commander. The Feds would have to run around and round up all the miners and programmers involved in the network. In other words, it is impossible for them to act against Bitcoin in an efficacious manner. The system does not care about authority and bureaucracy. It will function anyway, regardless. Even if they did arrest everyone, new miners would crop up and create new nodes on the network, like new dealers crop up to sell more pills in the drug market. There is a potential threat to Bitcoin neutrality, but realistic threats to the protocol will be examined in the next part of this series.

The Age of Economic Freedom

The most important reason why the Fed will die an agonizing death is because of Bitcoin's utility. It is safe, secure, and efficient. It works and works well. There is incentive to use it. Anyone can send Bitcoin anywhere around the world for negligible fees. The fear of being defrauded is reduced because users don’t have to share private data. They can also keep multiple wallets with Bitcoin and spend their money from anywhere so long as they have an internet connection, which is becoming easier to access, even in third world countries.

Bitcoin will not dismantle the governmental banking empire by assaulting it with guerrilla warfare; it will abolish the system with guerrilla economics. The central bankers have to compete with it. Since they can’t arrest anyone, they will be forced to outpace it. Their attempts will fail, though. Decentralized currencies are the next step in innovation, not improvements of existing money and payment technologies. This implies the Fed has been subjected to a Zugzwang: all their potential moves worsen their situation. All cryptocurrencies have to do is continue growing. This is not a problem. Bitcoin has become of a phenom. It is not a matter of whether it goes mainstream, only when. The age of economic freedom has arrived, and the Fed is sounding its death knell.

Nonetheless, there will be battles over Bitcoin neutrality that have to be fought and won. The Fed and bankers will not go down without a fight. There are limitations and weaknesses in the protocol and network that the community must overcome in order to succeed...

(To Be Continued)

Do you agree that cryptocurrencies will usher in a new age of economic freedom? 

Image Sources:
jeff-gomez.com
scannellkurz.com
usnewsghost.wordpress.com

Resources:

http://dankaminsky.com/category/security/
https://bitcoin.org/bitcoin.pdf
https://www.cryptocoinsnews.com/digital-currencies-like-bitcoin-will-disrupt-global-finance/

Future Use Cases For Blockchain Technology - Parcel Tracking Regardless of Courier

Blockchain technology is a platform that allows an unlimited amount of technological innovations to take place in the next few decades. While most of that focus is currently aimed at the financial sector, blockchain technology could start having an impact on our daily lives very soon. Imagine a world in which the tracking of parcels would take place on a blockchain, rather than centralized services belonging to couriers and whatnot.

Keeping The Couriers, Removing The Centralized Tracking Systems

From a convenience point of view, it would only make sense if we could track any type of package around the world using one single system.  Rather than using a centralized system, such as 17Track for example, blockchain technology could give us real-time information regarding the whereabouts of a shipment.

We have all been there: an item has been ordered from a foreign country, and it comes with a tracking number that just won’t update the status at all. This is especially true for people who regularly purchase goods in China. Despite offering very cheap shipping methods, tracking a package before it enters the country of the recipient is pretty much impossible.

Granted, any customer will appreciate cutting down on shipping fees for an item, even if that means waiting up to a month for delivery. But at the same time, it would be nice if they could properly track the package shipment status at any given time.  This is where centralized tracking systems fail more often than not.

Going back to our China shopping example, most of these workshops will mark an item as shipped and provide a tracking number that gives no information whatsoever. Even though the courier is listed in most cases, there is a high chance the package will not be trackable until it reaches the country of destination. Or in a handful of cases, it’s not trackable at all, and it magically appears on the customer’s doorstep all of a sudden.

None of this is to blame on the courier companies, mind you. They process the packages as expected, and put a tracking code on it that works for their internal system [in most cases]. However, for the customer desperately trying to track the shipment, there is no way to access that internal system and gain any information about the item’s transit status.

Asking about the status at the recipient’s local post office will yield no result either, as the tracking code is received is not recognized by their internal system. It has become clear that all of these postal services and courier companies use their own fragmented system, creating a problem for the customer who wants to get up-to-date information about a shipment.

All of these fragmented internal systems - which are centralized in their own way - work well within the country the shipment is coming from. Yet communication between postal services and courier companies around the world is pretty much non-existent unless you use a more expensive option such as DHL, Fedex or UPS. This adds higher fees for shipping would take away the fun associated with buying tons of small items in China, and getting free shipping to boot.

There is the old saying of “you get what you pay for”, and that statement holds merit when it comes to free shipping options. But that doesn’t mean these services could not be improved over time, by adopting new technologies such as the blockchain. This does not automatically mean the shipping will become more expensive all of a sudden, as the underlying technology has been available for quite some time now at zero cost. All it takes is building a platform on top of the Bitcoin blockchain to accomplish real-time worldwide parcel tracking, regardless of which courier or postal services have been used.

Is It Worth Investing Time and Money?

That remains the million dollar question. From a customer perspective, using blockchain technology for parcel tracking would be a major step forward. Not only can anyone check a package status at any given time, but it would also be done in a very transparent manner. All events can be timestamped, and notes can be added regarding potential import fees for example.

For the couriers and postal services around the world, blockchain technology would also mean they don’t have to invest in keeping up their own tracking database either. As a result, overhead costs will be cut down, and more focus can be put on making the shipping process more streamlined, and perhaps even how it can be made faster.

After all, shipping companies and services are all about providing that one service to customers: ensuring packages reach their destination in a speedy manner. Yet that service also entails giving customers insight as to where the packages are at any time and in any location. That part of the service is not being provided most of the time right now.

What are your thoughts on using blockchain technology to track parcels? Let us know in the comments below!

Images courtesy of Shutterstock

Bitcoin: A Technological Innovation Restoring Peer-to-Peer Interaction During The Shopping Experience

Many everyday consumers view technology as a major obstacle to overcome. Despite best efforts by developers and engineers to make all of the online services as easy to use and streamlined as possible, those efforts do not translate into real life applications. For example, in order to pay at a cashier, you have to manually feed bills into a machine near the counter, as the cashiers do not handle funds directly anymore. Yet at the same time, this shows the potential for future technology to improve on the current models.

Also read: Blockchain Tech and the Wizardry of Sharing Economies

Less Peer-to-Peer Contact Due To Technology?

Upon entering any medium-to-large-sized store these days, one of the elements that are clearly missing is social interaction. Standing in line at the cashier used to be filled with conversations going on all around you, and every time the cashier would be up for a bit of chit-chat while scanning your products and handling your payment.

Our society, on the other hand, has been spoiled with various degrees of technological innovation that slowly removed the human interaction element from the equation. On top of that, we are all being pushed and driven to consume more at a faster rate, leaving little to no room for socializing while doing everyday things.

Shopping at most locations has become far less of a social experience, and more and more a financial matter. Which products are cheaper at which location, are there any discounts involved and how much budget do I have right now? These are all questions we find ourselves asking more and more, all the while ignoring the people around us.

Even though traditional grocery shopping is not always the best place to strike up a conversation, chances are high consumers will cross paths with people they know. Other than a friendly “hello” or even a nod, no conversations are taking place anymore these days. And that trend has been spreading from the moment someone enters the store all the way to when they leave the premises again. Most consumers don’t speak a single word during the whole experience.

An often heard complaint is how “unfriendly” most cashiers have gotten in recent years. And while that is certainly true up to a certain extent, it is just a reflection of how unfriendly the everyday consumer has become as well. To explain this change in behavior, people will look for a scapegoat. In this case, the obvious scapegoat is no one else than the new technology we all love to use, yet blame for everything when things go wrong.

It is hard to say whether or not this criticism stems forth from a lack of understanding how the technology works, or whether he implementations are all wrong. Going back to the earlier cashier example, once bank and credit cards started becoming more popular, the time for social behavior was cut down by quite a margin.

Back in the day when consumers were frantically searching their wallet for the funds required, they would more often than not strike up a conversation with the cashier to counter the awkward silence. But with bank and credit cards, all a consumer has to do is insert their card, press a code, pull the card out and take off with their groceries. There is no real reason to have a conversation, as these transactions take place instantaneously, and no money-scrambling is involved.

Cashless Society = Socially Awkward Society?

Most of the new technologies we face during the shopping experience all focus on the financial part. Granted, financial matters are near and dear to the hearts of all consumers, as well as the stores where the shopping experience takes place. Facilitating the transfer of funds from the consumer to merchant and vice versa has become more streamlined over the years.

From a consumer point of view, the financial aspect of the shopping experience has become more convenient. Rather than looking for bills and coins, consumers can now use a card to facilitate payments. And more and more people are taking a liking towards this “cashless” trend, because of its sheer convenience.

For the merchant, however, these new technological innovations are both a blessing and a curse. Granted, having to deal with fewer cash transactions cuts down on overhead costs in terms of contracting a money transport to pick up funds at regular intervals. On the other hand, more overhead costs are created because card transactions are subject to various degrees of fees per transaction. Furthermore, funds from card transactions will not be in the merchant’s hands until 30 days after the transaction, which may cause an issue with paying suppliers.

Not that any of that will bother the consumer, mind you, as all they want is to get in and out of the store with the things they need as fast as possible. Faster payment methods were only the first step towards creating a socially awkward consumer society, as people have clearly forgotten how to strike up a conversation during their shopping experience.

Bringing Back Peer-to-Peer Interaction

One could go as far as saying that the entire aspect of “peer-to-peer interaction” has taken a back seat in the life of everyday consumers. In fact, most of the consumers are relying on card and mobile payments these days, all of which have one major security flaw, which most people aren’t even aware of to this very day.

Card and mobile payments rely on a centralized infrastructure, which causes a lot of havoc when that system goes down for any period of time. Bitcoin, on the other hand, has no central point of failure, and will be accessible anywhere in the world, at any given time, by any given person.It is important to keep in mind that Bitcoin, as a currency, is not here to overthrow existing payment methods, but rather wants to establish its place as an alternative payment method.

From a technology perspective, Bitcoin - or to be more precise, the blockchain - can remove the security flaw associated with traditional payments altogether. Bitcoin’s blockchain has no central point of failure, and there are thousands of users all around the world supporting the network on a 24/7 basis. Even if half of those users would face an outage at the same time - an event that is highly unlikely - the blockchain would still be able to process transactions without a hitch.

To put that into perspective versus traditional card and mobile payments: both of these services rely on the existing financial infrastructure to operate. If a major bank has system issues, all of its customers are affected, and making either mobile or card payments is impossible for an unknown period of time.

Or to take things one step further, most countries have one major payment network handling card transactions, and another network for mobile payments. Either of these networks are centralized as well, and once they face an outage, that type of payment will be unavailable throughout the country for a period. Not the ideal situation, as you can imagine.

This is where Bitcoin - either as a currency, or as a technology - can play a major role in improving the shopping experience as we know it. Bitcoin a s currency represents the truest form of peer-to-peer payment interaction in a frictionless manner, just like in the “good old days”. And as a technology, the blockchain removes any central points of failure, offering a global network that is growing month over month.

Truth be told, Bitcoin has a learning curve, both for its currency and technology aspect. But then again, any type of innovation, big or small, has had that same learning curve, and consumers managed to overcome that hurdle. There is no reason for history not to repeat itself, but this time in a way that will change the financial infrastructure - and the social aspect - for good.

Technology should never be blamed for the way our society has evolved in recent years. The only reason we use this technology is because it facilitated the way we do everyday things. But in the end, the consumer is responsible for how they “live” the shopping experience. And most of those consumers have become socially awkward, to put it mildly.

What are your thoughts on the social aspect during your shopping experiences? Let us know in the comments below!

Images courtesy of Shutterstock

FinTech - The Rehashing of Old Payment Methods And Focus on Blockchain Technology

FinTech is a term that will pop up across the world more and more. There is no denying that the world of finance is desperately in need for a new breed of technological advancement, after being “stuck” in the same principles and systems for over half a decade. Mobile payments are often touted as an important aspect of FinTech, but how innovative are these payment methods really? Not as innovative as Bitcoin and blockchain technology, that’s for sure.

Also read: Apple Pay: Same Old Ball & Chain

Innovation in the Financial Sector At a Standstill

Whenever someone talks about how the current financial ecosystem is working fine the way it is, the reason for the lack of innovation becomes crystal clear. Whenever something is not utterly broken, there is no reason to fix it, right? Well, that is where most people are wrong, especially when it comes to the way finances are and should be handled.

Our society has been reaping the benefits of an established banking structure in most parts of the world while leaving some regions underbanked and even unbanked. In the Western world, it is only normal to open a bank account at a certain age, and use a bank card tied to that account. At a later age, having a credit card is less of luxury and more of a mainstream commodity in that part of the world.

All of this is in stark contrast to the unbanked and underbanked parts of the globe, where people simply don’t have access to a financial system as the Western world knows it. Granted, everyone can open a bank account, yet some governments ask for certain documents for a citizen to qualify for even having the right to get an account. Not everyone can or wants to provide that form if documentation, as it only gives the local government even more insight into their financial habits.

During the recent Greece crisis/debacle/charade, “capital control” was a very popular term. To put this in layman terms: money from outside of Greece was not being accepted, and Greek citizens could not transfer their funds out of the country either. Despite having a unified currency - the EURO, which is used in most EU countries - financial institutions prohibited moving funds outside of the country. Quite an astonishing feat in this day and age, don’t you think?

This begs the question why a currency such as the EURO was invented in the first placed. Creating a unified Europe was one thing, but giving most countries exactly the same coin was something entirely different. On the one hand, the EURO solved the problem of currency exchange requirements while traveling from one European country to the next, a welcome change in that regard might I add.

But on the other hand, it creates a closed down financial ecosystem in which all countries where the EURO is used are tied to the European Central Bank. Every individual country still has their own local bank branches, but they all answer to the European Central Bank as well. And as was seen during the Greek Tragedy of 2015, that European Central Bank held all the cards to bail out Greece or drop them from the EU. Such financial power in the hands of a handful of people is wrong, an abomination of power that invites corruption on all levels. But that is a discussion for another time.

So what makes Greece able to exert capital controls in their own country, despite having to answer to the European Central Bank? The answer to that is simple: Greece still had a stash of cash within their own ecosystem of banks and locked down all of that funds for a time. Even though those funds belonged to the customers of those banks, the Greek government exerted its absolute power of the money of individuals. Clearly, the current financial system is broken.

FinTech Innovation: Rehashing The Old Ecosystem Without Changes

Alas, the time has finally come for developers, financial institutions and engineers to look at the future and build new platforms, most of which are focused on mobile payments. With so many people carrying a smartphone with them every day, it only makes sense to turn that device into a form of payment sooner or later. And it has to be said, the everyday consumer is taking a liking to the idea of using their mobile device for payments.

In a recent study, it showed that consumers are not a fan of digital wallets at all. They feel insecure by storing all of that financial data on their mobile device, and giving out sensitive information to app providers. Oddly enough, those same customers have no problem linking their credit card or bank account to mobile payment options such as Paypal or Apple Pay.

There is nothing that makes a digital wallet more or less secure than the Apple Pay or Paypal applications, mind you. All of these services control the consumer’s details, including financial data and process it on behalf of the customer. And the worst part is, all of these services are centralized, just like the European Central Bank is a centralized institution.

FinTech is currently evolving in such a way that the new “wave of innovation” will focus on bringing many more mobile payment applications will be revealed to the public. To counter that statement, just because a new mobile payment application is launched, that doesn’t make it FinTech or innovation, as it is rehashing the same old payment methods.

Take any type of mobile payment application in the App Store of your mobile operating system, and 99% of them will ask the consumer to link their bank account, credit card or debit card to this “new” service. In the end, there is very little innovation going on in this regard, as consumers are still forced to rely on the existing financial infrastructure that has been around for 50 years, and has seen little to no innovation to speak of.

The New Breed of Technology Is Already Here

However, it has to be said that a small number of mobile payment options are looking at a brand new technology, called the blockchain. The term blockchain is related to Bitcoin, a disruptive digital currency that acts as a borderless payment method. No central authorities are involved, nor are there any banks issuing Bitcoin, as all aspects of this new type of economy are controlled by the individual users.

And this is what a lot of financial institutions are exploring at this very moment. Creating a more transparent system which facilitates the transfer of value around the world at far cheaper rates is a true innovation in the world of finance. Blockchain technology is an area of technology that was despised by financial institutions in the early days, but as the technology evolved, the same institutions started to see the benefits of working with the blockchain.

It will take some time until the first blockchain-based applications and platforms make it to the world of finance as we know it. But rest assured, there is a new wave of innovation just around the corner, which will not rely on the outdated financial infrastructure we have all grown accustomed to. The blockchain will change the world of finance as we know it, and there has never been a more exciting time for FinTech than right now.

What are your thoughts on the current state of FinTech innovation, and what type of blockchain-based solutions can we expect in the next few years? Let us know in the comments below!

Images courtesy of Shutterstock

Bitcoin Companies Could Benefit From Hacker's List Marketplace

Technological innovation has accomplished many feats, most of which are overall positive for our society, while some of them are a bit dubious in nature. Things consumers don’t understand properly are automatically classified as “potential threats”. Whether we’re talking about Bitcoin, or a marketplace for professional hackers, there are clear advantages to both ideas.

Hacker’s List - Professional Hackers For Hire

There are two different type of hackers in the cyber security world: white-hat hackers and black-hat hackers. white-hat hackers are security experts who probe security systems in order to conduct vulnerability checks, and work together with companies and law enforcement to sort these issues. In fact, there are several white-hat hackers who were previously black-hat hackers.

Defining black-hat hackers is slightly more confusing though. First and foremost, a black-hat hacker can be seen azs a typical cyber criminal attempting to gain access to networks and internet services without authorization. On top of that, black-hat hackers are also known for creating botnets, computers infected with malware or a virus, and use that combined computational power to attack other networks or platforms.

One of the more common practices conducted by black-hat hackers is email spamming. Even though spam emails have decreased year over year, there is still a market for such services. To put it mildly, a skilled black-hat hacker can be the worst nightmare of security firms and major companies. However, small companies or even individual users are an equally interesting target for black-hat hackers.

Hacker’s List, a website/marketplace launched by Charles Tendell in 2014, can be seen as a platform to connect white-hat security experts with people facing cyber-problems they cannot solve on their own. After all, there are plenty of companies and individual users who face a serious cyber-related problem, and have no idea what to do next. On paper, a service such as Hacker’s List sounds very promising, despite the word “hacker” in the marketplace’s name.

"Hacker's List is meant to connect consumers who have online issues to hackers or professionals out there who have the skills to service them, Consumers get bullied online, they lose personal information, they have things stolen from them, they get locked out of things, and they have people post negative things or post personal information. They didn't have a place to go to be able to get help and make sure they're getting the right price or the best person for a particular job. That's what Hacker's List is for."

Even though Hacker’s List is advertised as a platform to display that not all hackers are “pure evil”, the message does not seem to be getting through to the consumer. Most of the requests posted on the marketplace are regarding illegitimate issues, as several users desperately struggle to get their hands on a black-hat hacker, rather than a white-hat security expert.

Making Money From Hacker’s List Is Not Easy

Misinterpretation of what and who this marketplace is aimed at is just one of the many struggles this platform is facing. Despite having a large list of available white-hat security experts on Hacker’s List, only a few people have actually made money by listing their services on the marketplace. Considering there are over 3,000 profiles registered as “services for hire”, and only a handful of those people making a few hundred USD each since November of 2014, things need to change sooner or later.

One of the things that could be causing this is that there are no official numbers regarding “active” white-hat security experts on Hacker’s List. There is a good chance that a lot of the initial registered users abandoned the service once they noticed people misunderstood the ideology of this service, while leaving their profile on the site.

But Hacker’s List has got some things going for it as well, as the platform itself is somewhat easy to use. Customers can post the project they are requiring assistance with, and the “hackers” will bid on the project of their interest. Based on those bids, the customer can then select the white-hat security expert they want to enlist, while Hacker’s List will act as an intermediary [by holding customer funds in escrow until the project is completed].

The listing of new projects goes through a hybrid process of human vetting combined with automated software checks. That being said, there are still a lot of illegitimate and unethical hacking requests appearing on the platform every day. The addition of a “moderation” button - so users can flag bad projects themselves - allows the Hacker’s Life community to get involved and do their due diligence.

Note from the Author: It is important to note that Hacker’s Life is a platform that aims to eliminate any and all anonymity. Users who sign up will need to verify their identity, which gives the platform a legally binding document, holding the individual responsible for all liabilities if their intentions are less than honorable.

A Huge Potential for Bitcoin Companies

One of the issues that has been plaguing Bitcoin since day one are its security measures employed by services and companies in the digital currency space. Despite facing a “hacker threat” since day one, Bitcoin exchanges and other services are still getting hacked this very day. Conducting a proper security audit is not an easy task, because it is increasingly difficult to find proper security experts to assist in the matter.

This is where Hacker’s Life could play a major role, as this marketplace provides Bitcoin companies with a wide selection of white-hat security experts for all ethical purposes. Rather than relying on people within the Bitcoin community, a fresh set of eyes can be incredibly valuable and beneficial in terms of improving security. And who knows, maybe they will even accept Bitcoin as a payment.

If Bitcoin wants to become a mainstream trend, security efforts will need to be ramped up. Putting the individual in control of their finances is a big step for most consumers, and if the platforms providing these tools are not secured properly, mainstream adoption will never be achieved. Hacker’s List could have huge potential to help developers and engineers build a better and more secure future for Bitcoin companies in general.

Do you see a potential upside for using hacker’s List security experts to increase Bitcoin security? Let us know in the comments below!

Source: Ars Technica

Images courtesy of Hacker’s List and Shutterstock