The governor of Tennessee signed a bill recognizing the legal authority to use Blockchain technology and smart contracts for electronic transactions on March 22, according to legislative tracking site Legiscan. A summary of the bill reads that it “recognizes the legal authority of blockchain technology and smart contracts in conducting electronic transactions.” The bill also makes a provision that, “protects ownership rights of certain information secured by blockchain technology.” Continue reading Tennessee Passes Bill Recognizing Blockchain, Smart Contracts
The blockchain has just disrupted another niche. UK-based Nivaura in partnership with Microsoft’s Azure cloud has proved in a test case that the public ledger can be used to support regulated assets. The blockchain is an increasingly attractive option as the payments industry continues to embrace cryptocurrencies and even digital fiat money. Continue reading UK Fintech Settles Security on Ethereum Blockchain in a World-First with Microsoft
Ethereum crashed under $500 yesterday after SEC Enforcement Division Co-Director, Stephanie Avakian, made the announcement that the agency was investigating “dozens” of crypto companies involved in unregistered ICO’s. Continue reading Ethereum (ETH) Fell Below $500
With bitcoin, ethereum and other big name digital currencies regularly making the news for their role in controversies and developments, it is often easy to overlook the rest of the cryptocurrency market, even those rising in prominence like as IOTA. With a market cap of around $5 billion, it is currently the eleventh most valuable cryptocurrency. Unlike others, however, IOTA has its own unique spin on the blockchain tech, called Tangle. It is also able to boast zero transaction fees. In recent times, IOTA’s heritage in the German capital has clearly attracted several indigenous companies with deep pockets. For instance, the Chief Digital Officer of Volkswagen Group, Johann Jungwirth, is one of the board members of the IOTA Foundation. Bosch Group, through its venture capital arm, RBVC, has also invested an undisclosed amount and works closely with the foundation. When interviewed by Bloomberg, IOTA co-founder Dominik Schiener shared his belief that with these new partnerships, IOTA is heading for the “next growth cycle”. There are also rumors circulating in the crypto community surrounding a possible smart contracts-like feature in IOTA. Setting up multiple offices around the world, including ones in Canada, Japan, Norway and South Korea, is perhaps in anticipation of explosive growth following these changes.
Ethereum is based on Bitcoin’s protocol and its Blockchain design but is tweaked so that applications beyond money systems can be supported. The two Blockchains’ only similarity is that they store entire transaction histories of their respective networks, but Ethereum’s Blockchain does a lot more than that. Besides the history of transactions, every node on Ethereum network also needs to download the most recent state, or the current information, of each smart contract within the network, every user’s balance and all the smart contract code and where it’s stored.
Essentially, the Ethereum Blockchain can be described as a transaction-based state machine. When it comes to computer science, a state machine is defined as something capable of reading a series of inputs and transitioning to a new state based on those inputs. When transactions are executed, the machine transitions into another state.
Every state of Ethereum consists of millions of transactions. Those transactions are grouped to form ‘blocks,’ with each and every block being chained together with its previous blocks. But before the transaction can be added to the ledger, it needs to be validated, that goes through a process called mining.
Mining is a process when a group of nodes apply their computing power to completing a ‘proof of work’ challenge, which is essentially a mathematical puzzle. The more powerful their computer is, the quicker it can solve the puzzle. An answer to this puzzle is in itself a proof of work, and it guarantees the validity of a block.
A lot of miners around the world are competing with each other in an attempt to create and validate a block, as every time a miner proves a block new Ether tokens are generated and awarded to said miner. Miners are a backbone of the Ethereum network, as they not only confirm and validate transactions and any other operations within the network but also generate new tokens of the network’s currency.