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Beyond Bitcoins - Ethereum & blockchain innovation

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Beyond Bitcoins - Ethereum & blockchain innovation


> see also: Bitcoins/China thread (5,000+ views) : BTC Legacy thread


On the Bitcoin side of things, the past three months have seen several ups and downs, although more downs, unfortunately. The Bitcoin price was still well above US$460 by early December 2015, but things have started slipping ever since. A bottom was set shortly after the New Year when the Bitcoin price dropped to US$365.67. However, things have picked up again in recent weeks, and despite a dip recently, we are back at a value of roughly US$410 per BTC [at the time of writing].


Ethereum price charts, on the other hand, look very different. In fact, users could say the only way is “up” for Ethereum, as there is a visible upward trend noticeable since early January of 2016. That being said, Ethereum has not been without price dips either, although the lost ground has been made up relatively fast. The price per Ether has gone up from US$0.843 on December 11, 2015 to US$10.15 [at the time of writing]. The question is whether or not this price momentum is sustainable in the long run.

Chart : 3mos :



Is Bitcoin Volume Flowing into Ethereum?

That is one of the main questions a lot of people are wondering about. If the Bitcoin price goes down, and the Ethereum price goes up during that period, does that means there is a shift in trading volume? But if that would be the case, why isn’t the Ethereum price dropping when Bitcoin goes up again and investors flock back to their original investment strategy? Once again, the charts by Cryptocompare will provide interesting insights.

The CryptoCompare one-month Ethereum trading volume chart – in USD – tells us there has been a steady amount of funds invested over the past thirty days, with some exceptions. February 14,19,20,26,28, and 29 were all days with very little funds going into Ethereum. However, February 10, March 3,4,5, and 6 were rather good investment days for this project. The lowest amount of USD volume flowing into Ethereum in the past thirty days occurred on February 20th, as just US$13,675.44 was recorded across all exchanges.

Meet-Up/ Beyond Bitcoin: Reinventing Financial Services thru Blockchain Technology
  • ===

  • Let's discuss how bitcoin's underlying technology will transform the legacy financial system. We'll also cover the status of institutional adoption in the Philippines or whatever blockchain agenda local financial institutions might roll out in the medium term.


    In Don Tapscott and Alex Tapscott's book, Blockchain Revolution, they noted at least eight core functions that are ripe for disruption and blockchain technology's significant impact on the next steps forward:

    1. Authenticating identity and value.
    2. Moving value.
    3. Storing value.
    4. Lending value.
    5. Exchanging value.
    6. Funding and investing.
    7. Insuring value and managing risk.
    8. Accounting for value.

    What do they actually mean? Do you agree that blockchain technology will have an overwhelming disruptive effect on a traditionally conservative sector such as the financial industry?


    > https://www.meetup.com/Makati-Digital-Currency-Meetup/events/238536604/


    • Tuesday, March 28, 2017

      7:00 PM

    • Starbucks

      6750 Ayala Avenue Makati City, Makati (map)



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  • 2 weeks later...
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(After attending the Meet-up last night, I made this post on the Meet-up thread):


It was a fun evening and very interesting. Thanks for organizing it Rafael.

May I point people to Bitcoin related threads on my GEI Forum website?


2017 thread: http://www.greenenergyinvestors.com/index.php?showtopic=21228


Older Bitcoin thread with 28,000+ views :
I am also developing some bitcoin related strategies.

After one month trading, using low risk strategies, my trial portfolio is up 35%. Fingers crossed this will continue


This will remind people where we came from: Just $0.04 when that first old Bitcoin thread was begun.



BTC is now over $1,000 - having briefly exceeded the price of Gold in the last month.

The next big rally may not stop at the Gold price, and could keep going to new highs.

I will be watching with interest, and may well have some trading positions open.

I am also watching other crypto-currencies, like Ethereum, Dash, and Ripple.

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Forbes Interviews SCI CEO John Bailon About Bitcoin’s Disruptive Potential Haven’t Heard of “Blockchain”?


Perhaps You Don’t Know Enough About Financial InnovationAuthor: Vince ChanTranslation by: Dept of Liguistics, CSSP, UP Diliman, Philippines

(The original Chinese-language article with the same title was written and published by Vince Chan for Forbes China on August 24, 2015. It can be found by clicking on: http://www.forbeschina.com/review/201508/0044931.shtml)


Last week, the Japanese police once again arrested Mt.Gox CEO Mark Karpeles for charges of theft and embazzlement. Mt. Gox, once the world’s largest Bitcoin trading platform, had declared bankruptcy early last year. The stigma and the criminal charges did a grave disservice to the already negative public image of Bitcoin.


Bitcoin is not unfamiliar to the Chinese people. According to Goldman Sachs, up to end-2014, the Chinese Yuan (RMB) accounted for the largest volume of Bitcoin transactions globally (77%), followed by U.S. Dollar (19%). The rest were Euro and Japanese Yen. At the same time, China’s big three Bitcoin companies, namely OKCoin, Huobi and BTC China, accounted for 80% of the Bitcoin transactions in the world.

The Chinese people like to speculate and mine Bitcoin. When Bitcoin reached its peak of popularity in China in 2013, Chinese nationals flocked to become “miners” and mined Bitcoin for easy and quick money. If Bitcoin did not eventually fall from RMB7,000-8,000 per unit to its current price of less than RMB1,500 per unit, there would surely be more people jumping onto the bandwagon alongside the speculators and the miners.

To cool down the craze, Chinese regulators decided to forbid financial institutions and payment platforms from launching Bitcoin-related services. This, in addition to price volatility and negative press about Bitcoin, Bitcoin gradually faded out of the eyes of the Chinese public. As the saying goes, “the quicker one becomes popular, the faster it will be out of the limelight.”


However, venture capitalists have a totally different take on Bitcoin. Coindesk reports that since 2012, the venture capital investment in Bitcoin-related new ventures have accumulated to approximately US$800 million worldwide. The amount of investments during the first half of 2015 totalled US$400 million worldwide, which already exceeded the annual figure in 2014. Some predicted that, given the current momentum, the total amount of investments for 2015 might well reach US$1 billion.


These forward-looking venture capitalists have credible background – including major VC funds in Silicon Valley, New York Stock Exchange, Chicago Merchantile Exchange, Goldman Sachs, and China’s IDG Capital Partners. Their Bitcoin interests are also well diversified, from trading platforms to wallet, from payment to hardware services.


Apparently, venture capitalists and the general public have different views on Bitcoin. Why is that? On the surface, the two are highly correlated (after all, the subject is Bitcoin). But in reality, the former bets on innovative technology to solve actual pain points. The latter is primarily driven by the desire to speculate without the backing of real-life market demand.


By nature, venture capitalists look through the future and place their bet (or vote of confidence) before a new kind of technology, a new product, or a new business model gains large-scale acceptance. In this scenario, the real motivation behind venture capital investment in Bitcoin is actually the underlying Blockchain Technology. Bitcoin is in fact a marketable derivative out of the Blockchain technology.


The Blockchain as the architecture for a new system of decentralized, digitalized, trustless transactions is the key innovation. It allows the disintermediation and decentralization of all transactions of any type between all parties on a global basis. The encrypted data recorded in the blocks are monetary, equity, bond and other digitalized data (for instance, digitalized signature, contracts, etc.). All these are exchanged through a distributed network of trust that does not require or rely upon a central intermediary like a bank or broker. Instead, they are all done in a way where only the owner of an asset can send it, only the intended recipient can receive it, the asset can only exist in one place at a time, and everyone can validate transactions and ownership of all assets anytime they want. In this way, there is no need for any centralized mechanism of auditing.

What’s the business implication? The centralization and intermediary functions of the key stakeholders of the financial system – central banks, commercial banks, investment banks, credit card operators (Visa and MasterCard), and SWIFT payment system, etc. – would be reformed, or even worse, replaced someday. The users of the system could benefit from better and more effective risk and cost management relating to counterparty credit risk, transaction cost, documentation cost, intermediary costs, etc.


“Digital currencies such as Bitcoin…….have great potential” said by Randall S. Kroszner, currently the Professor of Economics at the University of Chicago Booth School of Business, and formerly the Governor of the U.S. Federal Reserve System as well as a Member of the Federal Open Market Committee. He expressed such viewpoint on the prospect of Bitcoin in his recent commentary article titled “The Future of Banks”. He believes that other than supervisory stance and intensity, innovative technology will be the other instrumental driving force behind new kinds of banking models in the future.


To capture the growth value in a holistic manner, venture capitalists put their eyes on every crucial element within the Blockchain technology ecosystem. The key elements include:

  1. Consumers who pay with Bitcoins;
  2. Merchants who accept Bitcoins;
  3. “Miners” who run the computers that process and validate all the transactions and enable the distributed trust network to exist; and
  4. Developers and entrepreneurs who are building new products and services with and on top of Bitcoins.

All in all, venture capitalists purposefully invest resources into every corner of the Blockchain ecosystem, creating and nurturing the scale effect. There are four constituencies that participate in expanding the value of Bitcoin as a consequence of their own self-interested participation. Only through realizing the scale effect that the destiny of the Blockchain technology can be potentially fulfilled.


Comparatively, the buying and selling of Bitcoins in China is driven by opportunistic thinking. In the minds of the Chinese “investors”, Bitcoin is a financial instrument, no different from stocks that can be freely bought and sold in the open market. But in essence, stock and Bitcoins are different. When it comes to stock investment, its value is normally a function of the issuing company’s revenue, its cash flow position, market demand for the company’s products and services, the industry landscape and other concrete macro and micro factors. In the case of Bitcoin in China, since there is no actual usage yet, there is no fundamental and functional need driving and supporting the value of Bitcoins.


> http://blog.sci.ph/post/134512731706/forbes-interviews-sci-ceo-john-bailon-about

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Ethereum 2017 Goals


NOTES - from Rafael P's Meet-up,


The newly formed Enterprise Ethereum Alliance (EEA) was launched last month to formalize the cooperation among 30 organizations coming together to focus on enterprise use cases of Ethereum. The alliance includes large established organizations like Microsoft, J.P. Morgan, Intel, Thomson Reuters and blockchain startups like BlockApps, String Labs and ConsenSys.


In the short term, the EEA has identified five goals for 2017, including:


1) Develop a sufficiently modular Ethereum implementation to separate and define clear interfaces between networking and storage layers - that is a prototype for pluggable consensus that minimizes the code changes required to switch consensus algorithms.
2) Experiment with potential consensus algorithms, along with data privacy and permissioning frameworks.
3) Develop a clear set of capabilities and performance characteristics that suit the needs of enterprises, including:
a) 100 transactions per second, across a 10 party network

b / High volume and value use cases
c) High availability/reliability
d) Parallelization and horizontal scaling
4. Develop a Version 1 specification for Enterprise Ethereum, based on the learnings from the above plus the roadmap and requirements gathered from members, i.e., produce a reference implementation.
5. Leverage a robust governance process to ensure alignment and agreement on approaches.

What do you think will be the impact of EEA? Do you believe in their Vision? Is this just another PR or would this alliance significantly move the technology forward and in particular pave the way toward simpler Blockchain-as-a-Service (Baas) platform?

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So many companies are looking to go digital - here's a new start-up in Canada


MintChip Digital Currency Sold to NanoPay by Royal Canadian Mint

MintChip to be used as a digital cash product with an assigned value

David George-Cosh

Jan. 12, 2016 10:42 a.m. ET

A Toronto-based startup acquired the Royal Canadian Mint’s fledgling digital-currency program and plans to commercialize the technology this year.

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Ethereum, the crypto-token of the Ethereum platform has become increasingly popular amongst cryptocurrency enthusiasts over the past few weeks.

Ethereum’s value has appreciated by nearly 500 percent since the beginning of 2015. In January, one ethereum was roughly worth 0.00212BTC. Almost a month and a half down the line, the value stands at around 0.01101 BTC.


What Are the Reasons behind the Phenomenal Rise in the Price of Ethereum? Future Investment

Ethereum is notably one of the valuable platforms. With the global FinTech industry shifting towards blockchain technology-based applications to suit their requirements, smart contracts, and automation of financial processes takes precedence.

Ethereum is tailor-made for such applications.

As the demand for the Ethereum platform and its smart contracts enabled network increases, the value of Ethereum as a cryptocurrency will continue to surge.

Demand Driven Appreciation

While there are few investing in ethereum for its future potential, there are those who just follow the trend. The increasing demand and value of a certain cryptocurrency serve as an indicator of its potential (even though it may turn out to be wrong at times). Whatever the reason is, it still increases the demand – meaning a further increase in ethereum price.

Faltering Faith in Bitcoin

It is speculated that the continuing block-size debate is one of the reasons for the increase in the demand of Ethereum. While it is hard to substantiate, the recent number seems to indicate that there might be an ounce of truth in it. In a span of 24 hours, 60,000 BTCs were traded for ethereum last week. There are reports (unverifiable at the moment) indicating a well-orchestrated ploy by unknown individuals or entities sending messages to bitcoin subscribers on social media about Ethereum being an alternative to Bitcoin.

Positive News Reports

Ethereum as a platform has been receiving a lot of positive press lately. Many companies and organizations have expressed their support to the platform.

Ethereum has completed yet another phase. The platform is expected to announce the stable release – Homestead which will follow Frontier soon. Homestead is a very important milestone for the platform as it signifies its maturity from a beta test phase to a more stable development phase. Even though Ethereum will still be far from complete with Homestead release, it is a great progress nevertheless.


> http://www.newsbtc.com/2016/02/14/factors-behind-the-rise-of-ethereum/

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Sometime in the future (we can't be certain when), ethereum will likely switch from its proof-of-work consensus algorithm to Casper, a proof-of-stake system its developers are now in the throes of completing.

While this may sound like a slight change to those who are unfamiliar, altering this one parameter will have an outsized effect. When the protocol change happens, the ethereum blockchain will hard fork, meaning that, for a short period of time, two networks – the old and new – will exist simultaneously.

At that point, the goal for ethereum will be to persuade the majority of its users to upgrade to the new proof-of-stake-powered blockchain. Otherwise, ethereum risks winding up creating another blockchain, as it did when a past technical update created ethereum classic.

On the surface of things, getting the companies that use the ethereum network to switch should not be a problem. After all, proof of stake promises to be faster and more scalable, and to consume far less energy than proof of work.

To most of the ethereum community, Casper sounds like a great deal. Unless, of course, you are a miner.

That's because proof of stake doesn’t rely on mining. Rather, it gives the job of creating the next block to those who own tokens on a blockchain – a move that essentially puts miners out of a job.

Time bomb

But, two things could go wrong with ethereum's big switch.

One would be if Casper does not work as planned. In this case, ethereum could simply delay the switchover. The second is if miners continue mining the old chain. But ethereum has always had a plan for that – something called the 'difficulty bomb'.


(see article): http://www.coindesk.com/ethereums-difficulty-bomb-smoke-no-fire/


Ethereum co-creator Vitalik Buterin wrote on Reddit: "With the change in the difficulty adjustment algorithm brought about in the last hard fork, the Ice Age will come very slowly indeed."

How slow? The difficulty adjustment happens every 1,000 blocks.

Currently, block time is averaging 14 seconds, but for the last year, it has been inching up to 15 seconds. And, according to calculations made by Buterin three months ago, that number will double to 30 seconds by mid-August of this year.

. . .


Zack Coburn, the lead developer at FirstBlood, a gaming platform that runs on ethereum, said he's not fussed.

He told CoinDesk: "We don't rely on extremely high frequency transactions, so a brief period of 30-second block times wouldn't be a major concern."

Some have a different opinion, though.

Rick Dudley, a blockchain developer who contributed to Casper, thinks any change in block time is a huge deal. And if the block time climbs to 2 minutes, the difficulty bomb will seriously impact businesses.

"Yeah, I think that is pretty crippling. Two minutes from 15 seconds is extremely painful. I think it is easy to misinterpret how bad that really is," he said.

He points out, though, that the bomb is only going to hit when there is already a viable alternative: proof of stake.


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Ethereum (ETH) continues to hold the number-two market capitalization, despite Ripple and Litecoin making large gains over the past week.

. . .

The ETH price has found a horizontal support zone, indicated by previous long candle wicks in the same zone. Should this level fail to support the price, I’d expect a target of the previous bull flag.




There is also an active bearish reversal chart pattern, the head and shoulders, which has now completed. The pattern can be identified through three successive local tops with a descending volume profile. Currently, it is highly suggestive of bearish continuation. The measured move would take the price to ~$14.25 (or 0.01188 BTC), a complete retrace and likely an overestimation of the move.




When a pattern forms and does not continue as expected — that is, if this bearish head and shoulders does not break down — expect a retest of local highs.

A candle close to the 50% retracement — or a break of this level — would be another indicator of growing bearish momentum.

ETH price has also failed to hold support above the 200 EMA for the first time since the beginning of the trend. A 50/200 EMA cross would indicate further bearish momentum as well.





  1. Mining hash rate continues to pour into ETH despite an economic model without a deflationary supply.

  2. A high timeframe bearish head and shoulders and break of the 200 EMA suggest further bearish momentum is likely.

  3. The next likely support is between ~$25–29.

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Some Big Steps are being taken


Ukraine to launch big blockchain deal with tech firm Bitfury

Ukraine has partnered with global technology company the Bitfury Group to put a sweeping range of government data on a blockchain platform, the firm's chief executive officer told Reuters, in a project he described as probably the largest of its kind anywhere.


Bitfury, a blockchain company with offices in the United States and overseas, will provide the services to Ukraine, CEO Valery Vavilov said in an interview on Wednesday.

Ukraine's blockchain initiative underscores a growing trend among governments that have adopted the technology to increase efficiencies and improve transparency.

Blockchain is a ledger of transactions that first emerged as the software underpinning digital currency bitcoin. It has become a key global technology in both the public and private sector given its ability to permanently record and keep track of assets or transactions across all industries.


Ukraine and Bitfury are expected to sign a memorandum of understanding on Thursday, Vavilov said.

Though Vavilov said he was unable to estimate the cost of the project, he said it was the biggest government blockchain deal ever so far. It involves putting all of the Ukraine government's electronic data onto the blockchain platform.


"A secure government system built on the blockchain can secure billions of dollars in assets and make a significant social and economic impact globally by addressing the need for transparency and accountability," said Vavilov.

There are other countries that have started blockchain programs, but they are smaller in scope involving one or two sectors, such as land titles and real estate ownership. Countries that have launched blockchain programs include Sweden, Estonia, and Georgia.

"This agreement will result in an entirely new ecosystem for state projects based on blockchain technology in Ukraine," Oleksandr Ryzhenko, head of the State Agency for eGovernance of Ukraine, said in an emailed response to Reuters questions.

"Our aim is clear and ambitious -- we want to make Ukraine one of the world's leading blockchain nations."


> more: http://www.reuters.com/article/us-ukraine-bitfury-blockchain-idUSKBN17F0N2

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  • 3 weeks later...

Just popping in to say this summer will be nuclear for blockchain coins.


All coins are breaking new highs.


They can't control this - no central bank can print bitcoins and backstop the market. The fallout out from a crash will make 1929 look like a kinder garden.


I do have some exposure and a trade plan - it will be one hell of a ride.


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I think the future is with companies that use blockchain tech as an electronic ledger that can be mutually verified. E.g. elections, share certificates, property ownership etc. Imagine with blockchain share certificates - you could buy a share of a stock from anywhere in the world, and receive the dividends directly to you at any time.


If there was a One World Government - they can hold GLOBAL elections and people can vote at home on issues. Like - can I have some more gruel, sir? Please sir?

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We now have a financial instrument that trades all hours globally, and accessible to all. All you need is a computer and bank details. This is the first time in history where all 7bn+ people on the planet can trade an instrument instantaneous without limit.




One rare tulip in tulipmania

their value, which were delivered for one single root of the rare species called the Viceroy:
Two lasts of wheat .....448
Four lasts of rye ........558
Four fat oxen .............480
Eight fat swine ...........240
Twelve fat sheep .........120
Two hogsheads of wine .70
Four tuns of beer .........32
Two tons of butter ........192
One thousand lbs. of cheese 120
A complete bed ..........100
A suit of clothes ..........80
A silver drinking cup .....60

Source http://www.econlib.org/library/Mackay/macEx3.html




1000lbs of cheese is about 453.592 KG.

Sainsbury's basic cheese is £4.60Kg
Source Sainsbury's website

453.592 x £4.60 = £2086.5232p

= 120 Florins.

2086.5232 / 120 = £17.3876/Florin

x 2500 = £43,469.23p per tulip!

Price target of a bitcoin $50K???
(I just chose a round number, in the same order of magnitude)

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Interesting thought!


Now that BTC has hit 140% of Gold, what target is next?


Peak Tulip prices??

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Maybe... just maybe ... BTS has put in a top near $1900 ($1892). ...


BTS / 10-d : 8-yrs : . . . Was THIS a major Top in Bitcoin prices? ..................................................................... V $1892



It is already down about $100.

If the top is in, I may expect to see: money flowing OUT of BTX and into other cryptos, like ETH


ETH : $ 89.56 : + 1.73%




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Previous Bull runs have seen Bitcoin rise 5 fold, so if it remains true to form it might top $6000. However there is always the possibility that this escalating scaling problem could derail the current run-up prematurely.

This is not just Bitcoin's problem. The vast majority of Alt coins including Ethereum are forked from the Bitcoin codebase and so the more they grow in popularity, the sooner they will start to exhibit similar scaling difficulties.

Litecoin seems to be being championed (so far successfully), as a testbed for working solutions that look to offer some limited respite from the problem. In the case of Bitcoin, which seems to have found it's niche as a store of value rather than a means of exchange, this might yet prove a viable manner in which to incrementally address scaling issues as it continues to grow in use.

Ethereum though, still has high hopes of being utilised with far wider remit, but will suffer the same scaling issues very shortly. And as has been touched on in this thread, there are no shortage of proposals to address this, and all well beyond my ken, I can however grasp the jist, which is that an awful lot remains to be done.

Anyway, after dabbling in Bitcoin and Litecoin in the run up to the 2013 top, I bought some more bitcoin this time last year, and wanted a little of something else, but not more Litecoin as it seemed to me to be continuing it's slide into oblivion. ( I eventually did give up on it and sold it pretty much at the bottom last November for a 60% loss). As far as I recall, at the time, Ethereum had already replaced it as the highest market cap Alt coin, but for some reason, probably as superfical as that you could get a lot more for your buck, (it was trading at $0.006 at the time), I choose Ripple.

So when every major Alt coin it seemed bar Ripple of course, seriously kicked off in the New Year, I told myself just be patient, ,,patience finally snapped mid-March and joined the mad rush for some Ether. However after my Litecoin fiasco, just about managed to restrain myself from selling the Ripple in contempt. More recently, I’ve had a change of heart about Ripple and bought some more a few days ago at $0.15, that's 25 times what I paid for it a year ago. Also bought Stellar Lumens ( a Ripple fork) at $0.02. Reason being I've finally gotten round to a slightly more in depth appraisal of Ripple, and it seems the techie who headed up the initial development at Ripple labs and since gone on to found Stellar, had some sharp foresight into the scalablility issues waiting to beset the blockchain technology underlying Bitcoin and it's many forked Alts.

..The outcome of which is that while the Ethereum blockchain is currently capable of processing up to 20 transactions a second, the Ripple Distributed Ledger Technology is under advanced stage testing by a large sector of the banking industry and apparently displaying no such limitations.

Right now, I’m intent on holding my Bitcoin for the foreseeable future, and whilst fingers crossed for Ethereum, it is only what has subsequently turned out to be my undue hastiness with exiting Litecoin, that is causing some hesitation right now over trading my Ether for more Ripple or Stellar.

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My guess is that this short term drop in bitcoins, will bottom between $1500-1600, nit far from where we are,

and then maybe rally back to $1800+... before a bigger drop


That is the pattern we saw it gold.

Let's see if it happens.


I am trading... but in tiny sizes now.

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Yes, bitcoin has cooled off. Not trading the bitcoin itself, but I have speculative money in Ethereum.


I don't think this going away until we have another major problem (like in the last collapse), scandal or fraud. People are putting money with offshore unregulated brokers - what could go wrong if everyone wanted money out all at the same time?


What I'm doing is using average prices over a week (rather than getting false signals watching the price minute by minute), watching it taking out new highs, and seeing if it it holds major levels. So far $80 has held, and it is at the $90 area, and I am in double digit gains so far in the space of a couple of weeks.

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Watch "Vitalik Buterin: Zero Knowledge Proofs and Ethereum Update @ Ethereum HK Meetup" on YouTube


" Vitalik Buterin at the Ethereum HK Meetup with founder Jehan Chu speaking at Metta about Zero Knowledge Proofs, ZKSnarks, and a general update on Ethereum"
=== ===
A FATAL FLAW - in using Ethereum for transactions involving high Volume?
Someone set me the Link to the above video by email, and I messaged back:
By coincidence, I met Jehan Chu, and one of the old Ethereum core development team members (Alex Leverington, now with the Golem Project) a few hours ago.
I had lunch with a friend here in HK a few days ago. He's writing aps for Bitcoins and looked closely at using Ethereum aps. Something he said to me prompted me to ask this question Alex this question:
"I heard that if you try to process over 10 transactions a second in Ethereum, the wheels come off,
is that true?"
His answer (I paraphrase):
+ some have said that, but there are ways around the processing problems
+ it involves not putting huge documents in the code to be processed, but rather referring to blocks of code elsewhere
( I hope I have captured what he actually said accurately, I cannot recall his exact words)
+ if your friend has discovered a new problem, he should let me or one of our team know, and we will try to solve it

Could this be an admission that there may be a problem that is not easily fixed?

(Because, you can keep your own processing requirement slim, but if the other 9 transactions processed in that second are not also slim, then there will be a backlog problem - this leaves the system vulnerable, if someone wants to corrupt if by inputting "fat" transactions.)

It was the last question of the night, and I wish I had time and enough knowledge to discuss this with him more deeply

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Is the RISK of collapse really reduced - Vitalik thinks so


The most intelligent answer from Vitalik Buterin

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Yup, last time I bought some bitcoin, was back in December. I was pleased to finally be seeing some real return on my punt, but concerned that it took so much longer to arrive in my wallet than just a few months earlier. Also concerned that all the other Alt coins seemed to be dying, and that though the bitcoin market volume still seemed to be healthy, over 80% of it took place on the Chinese exchanges.


When the Chinese Goverment starting threatening to impose capital controls on their internal bitcoin marketplace, I thought that might be it, but as in the past bitcoin is proving resilient, and now Japan appears to be driving the market.


Came across this article earlier on, https://medium.com/@coin_and_peace/new-wave-of-japanese-investors-are-fueling-the-great-altcoin-bubble-a504383172ff


Interesting and maybe some explanation why the Ripple price gone completely beserk, I agree with the author clearly bubble behaviour, but it's not so clear whether the bubble will pop in Japan or just move on elsewhere..


Anyway no time to ponder that too much, ..better top up on a little more Ether sharpish whilst it's still under £100!

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