The blockchain as an instrument of development aid

In developing countries there is often a lack of sufficiently functioning and public steering units or institutions. At the same time, a large part of the population, often up to 80%, works in the informal sector. The informal sector, or as one would colloquially say in German the black market, forms the economic basis of entire national economies. Accordingly, there is no central state control and taxation. The supposedly chaotic economic systems control themselves endogenously, i.e. out of themselves, and are not, like industrial nations, controlled by institutions and authorities. So practically everywhere there is a lack of central institutional actors. This is precisely where decentralized structures pay off, as they enable interaction within the economic network.

So the question is which solutions the blockchain technology can offer the news spy?

The political system in developing countries is often very unstable and has little to do with the news spy. Corruption is often enormous and the recruitment of political elites is highly opaque. For example, it is doubtful that elections, if there are any, are conducted in the right way. If, however, the news spy elections were now organized via a blockchain, i.e. blockchain voting, the political system could benefit from a higher degree of transparent democracy.

Another example of blockchain application can be found in public administration. This is often very poorly developed in developing countries in terms of efficiency. Moreover, there is often a lot of corruption, which is caused not only by low wages, but also by a lack of transparency and the quality of the institutions. Block-chain optimisation can be achieved here above all in the area of registration. With the help of the blockchain, land register entries or other types of registration could be made. Bribery and nepotism could be reduced by increasing the transparency and the cryptographic programming of the blockchain.

Several application areas are conceivable in the Bitcoin secret

In principle, there are application examples everywhere where the distribution and recording of the Bitcoin secret is concerned. Regardless of whether you capture voters’ votes, enter a house purchase or purchase computing power for applications and data, it is all about interfaces and their correct capture. This logic, in particular that of the registration function and that of the decentralization of the block chain, can be transferred to many other areas says onlinebetrug.

For example, intelligent and decentralized power systems (so-called Smart Grids) can be used with the help of the blockchain. After all, in many countries there is a lack of a constant public electricity supply, so that people have to produce a large part of the electricity via gasoline-powered generators. In combination with solar cells, for example, a blockchain network could ensure that a decentralised electricity market is established, completely detached from the otherwise poorly functioning public electricity supply.

It would also be conceivable to control and distribute water and gas resources via the blockchain. Here, too, developing countries would benefit disproportionately compared to industrial nations, since the performance of utilities is often inadequate.

Development aid must also start in the financial sector
Furthermore, many developing countries lack a stable currency. Digital currencies can guarantee the necessary stability for companies and consumers, which is being robbed by the lack of monetary stability (primarily inflation). Countries struggling with a sharp depreciation of their own national currency against other currencies could use digital currencies to secure their imports, at least in part, even in difficult times.

Moreover, people in developing countries often have no access to banking services and no bank account. With the help of digital currencies, people would have the opportunity to shop on the Internet, which was previously hardly possible without a bank account and credit card. Digital currencies such as Bitcoin could ensure that these access restrictions are abolished for many people in developing countries. Access to the global trade and financial markets would thus be available to a larger part of the world’s population.

Accordingly, access to credit is difficult for many people in developing countries. A decentralised credit system, which may also be based on digital currencies, could provide people with better access to (micro-) loans and investments.

Consensus vs. government – Why Bitcoin is not a democracy

With Bitcoin not only a digital means of payment was invented, but also a new mechanism for the leadership of society manifests itself in the protocol: the consensus. What is the difference between consensus and democracy? What are the effects on government and society?

Over the past 200 years, the ideal of democracy has moved to the center of society – democracy as the apotheosis of society. Accordingly, decisions must be taken democratically in order to claim legitimacy. Abstractly speaking, the majority subjects the minority to a democratic decision. Democracy is a form of government.

Bitcoin turns the cryptosoft system upside down

At cryptosoft conferences you hear again and again “democratization of X” as the goal of the digital revolution 2.0. But let’s remember back: this revolution 2.0 was kicked off by Bitcoin – the decentralized peer-to-peer electronic cash system. The fundamental peculiarity of Bitcoin is its cryptosoft leadership.

This is where the difference between government and governance becomes clear: the government is the authority that determines the course; in return, the leadership is the process by which something is decided.

We already know that in Bitcoin there is no central authority, no government to make decisions. That’s not a bug – it’s a feature. The absence of a ruling authority leads to a unique leadership mechanism: consensus.

While in a democracy the majority determines the minority, in a consensus everyone determines himself. Participants only have decision-making power over themselves and their property. This means that in Bitcoin it is not the majority that decides – but everyone, everyone, who decides about themselves. Whoever participates in the network implicitly agrees to the rules. Everyone agrees on these rules. All interaction is based on a voluntary basis.

Decisions on the crypto trader

The example of block scaling demonstrates the consensus principle by onlinebetrug: In 2016 and 2017, one question dominated the Bitcoin world: How should Bitcoin scale to a global means of crypto trader payment? The answers were as varied as they were contradictory. Two camps pulling in opposite directions – “Larger blocks”. – No, SegWit! A hopeless dilemma? After all, there is no instance that says where it is going. The status quo is maintained. But that was not the end of the story.

After several years of debate, the Bitcoin protocol showed its true strength. Instead of imposing something on one camp or another, there is a third option in Bitcoin country. In the words of Dora the Explorer: “Por que no los dos? (Engl. “Why not just both?”). In fact, this was the solution to the conflict. The Bitcoin Unlimited team forged the Bitcoin network. Bitcoin Cash implements the proposed larger blocks. Bitcoin, on the other hand, activated SegWit and implemented a different approach to the scaling issue.

All users could and can decide for themselves. If you want larger blocks, you sell your Bitcoin for Bitcoin Cash; if you want SegWit, you sell your Bitcoin Cash for Bitcoin; undecided people don’t have to do anything. Whether you want to use Bitcoin or Bitcoin Cash (or neither) is up to you. Essential: All decisions are voluntary.

Hard forks instead of majority decisions
In a democracy, the majority must be united in order to make a legitimate decision. In consensus, this condition is drastically tightened: everyone must agree on this. If there are differences of opinion, the paths fork. This is called a hard fork. Then there are two networks that are incompatible with each other. Within the systems, however, there is still a consensus.

The power of consensus is evident here. It tolerates a plurality of opinions and everyone can live them out. Where in a democracy only one variant can win and be implemented (Trump or Clinton? German Mark or Euro?), the consensus model allows everyone his ideal world. Whether larger blocks or Lightning are the right way to scale or not, time shows us. We will see, because both approaches exist.

So Bitcoin is not a democracy. Although there is no government, there is leadership. By participating, everyone implicitly agrees to the consensus rules. Decisions are made by all participants. Everyone decides for themselves. Suggestions for improvement are discussed in the community. Ultimately, everyone can take the helm and “forke” the computer code – that is, realize their own ideals. How many people are interested in the Hard Fo

Prediction of crypto courses using Monte Carlo simulation

How will the price of a crypto currency develop in the future? Of course we do not all have a glass sphere, but on the basis of statistical models it is possible to estimate the extent to which price changes can be expected. The Monte Carlo simulation is presented here as one of these models.

How will Bitcoin behave in 2018?

This is a question that many people are asking and which is often addressed to BTC-ECHO. The Internet is also full of forecasts on how Bitcoin and other crypto currencies should behave within a certain period of time. In the case of Bitcoin, the range goes from zero to one million euros.

But the sobering truth is, to put it in the words of Mark Hanna: Nobody knows if a stock is going to go up, down, sideways or in circles. Nobody can say with 100% certainty where the price will be tomorrow, next week or a year from now.

Assessments are, of course, another issue. As was recently explained, the aim of technical analysis is to arrive at a well-founded assessment of future developments and a trading strategy on the basis of past price movements – not to predict the price.

Especially for long-term price developments, methods exist in the financial world to estimate further price developments. These methods are also used to estimate the probability with which a price forecast applies. This is done using statistical tools, which will be presented in this article. I have also developed a small web application myself, which I will discuss in more detail later.

Goals for 2018: Sidechains, IPFS, Dapp SDK

2018 and onwards, Ethereum Classic is going about a lot. This year alone it is planned to support sidechains, which can relieve the main chain a bit similar to Lisk. The Interplanetary File System should be supported and a Standard Development Kit for developers of decentralized applications should be published. The entire roadmap can be found on the Ethereum Classic website.

The development team has set itself some interesting goals. It will be exciting to see if these goals are actually achieved. At the latest when this is the case, the crypto currency should think about a rebranding in order not to be considered as “something with ethereum” all the time.