Trusting Blockchain exchange

With every passing week, the world’s interest in Cryptocurrencies is multiplying at a staggering rate. Whether it’s bitcoin, ether, or any any other cryptocurrency on the block – people around the world own and trade cryptocurrencies. To make the trading accessible to the general public, we’ve several cryptocurrency exchanges on the world wide web. Through these exchanges, anyone can buy, sell, or exchange cryptocurrencies either with other digital-based currencies or with traditional currency such as rupee or US dollar.

Types of Exchanges

There are three categories of cryptocurrency exchanges. They’re as follows:

Brokers – Through these brokers, anyone can go and buy the desired cryptocurrency at a preset price. Most of these cryptocurrency brokers are similar in function as foreign currency exchanges.

Platforms for Trading – These platforms specialize in connecting buyers and sellers. For every transaction that takes place through the platform, they charge a fee — which is also how they make money.

Direct Trading – The way direct trading differs from the other two is that there’s no fixed price. The seller decides the amount, and the buyers have to determine if they want to buy or negotiate for any particular cryptocurrency. Direct trading is usually peer-to-peer.

What are the key attributes to look at while deciding to Trust a blockchain exchange?

The meteoric rise of bitcoin has also contributed to a significant increase in con-artists and exchanges which are mostly scams. So, before you decide to put your hard-earned money to buy cryptocurrencies — it is crucial to do your research. Below are the three things to know about an exchange before trusting them.

Reputation: In the age of the Internet, it’s not too hard to find reputable reviews about anything — including blockchain exchanges. Right from forums to commercially reviewed websites, you’ll find loads of information that’ll make it easier for you to decide whether an exchange is a right fit for you or not.

Fees: Before you even think about joining an exchange, do make sure you’re well-aware of all forms of costs that the exchange charges. The fee-model should include comprehensive details regarding withdrawal, deposit, as well as transactional fees. Compare it with other exchanges and then make an informed decision.

Verification systems: Any exchange worth its salt will have strong fortification in the form user verifications and securities. While the exhaustiveness of the verification might seem annoying while registering, it’ll protect your cryptocurrency and money from all sorts of scams.

Some well-known and reputable exchanges

We’ll make it even easier for you. Based on our research and user reviews, we’re going to tell you our favorite two blockchain exchanges that you can trust without worry.

Coinsquare: The first thing you should know about coinsquare is that it’s built on the same technology as the New York Stock Exchange. Yes, that’s right. According to their website, they manage their ledger at least 2346 times in a single day to ensure security. Reputable and secured, Coinsquare is a popular choice for both crypto-veterans and beginners alike.

Coinbase: Not only is Coinbase backed by some of the world’s best investors, but it’s also trusted as an exchange by millions already. One of the key features of coinbase is that coinbase insurance covers the stored currency. So, there’s that added layer of security. There’s a digital wallet also available as a mobile platform through which users purchase bitcoin, ether, and even litecoin.

Discovering Blockchain Loopholes

There’s no doubt on the potential that the blockchain technology has to offer. The world has accepted it at large. Blockchain developers are solving multiple problems across industries with this technology.

But there’s another side to the story wherein the hype is shadowing real implementation issues with the blockchain. These issues hinder the mass-adoption of this world-changing technology.

There’s no doubt that we’ll eventually get to the point wherein we’ve explored this great technology. However, to be able to that it’s essential to face realities both as developers and enthusiasts of the blockchain.  

Below we’ll be mentioning four implementation issues that plague blockchain as of today.

Limited Scalability –

One of the key advantages of the blockchain technology is decentralization. However, it comes at the cost scalability. As the number of transactions increase (and since every transaction passes through each block), the requirement increases too. Eventually, it’s not possible for every node to participate and the resources to process each block then rests with a limited few. However, that potentially compromises on the decentralization aspect of the blockchain. Scalability is probably the number one barrier when it comes to blockchain adaptability.


Storage Constraints –

Almost every application that’s built on the blockchain will require some form of storage. It can be either to store user identities, or it can be to record specific financial as well legal data. However, by property traits, every node stores the data. Along with it, no data will be able to be removed regardless of whether it’s needed or not. The above two cases put a considerable cost to the storage operation when it comes to the blockchain. Thus, storage constraint is a massive hurdle for any application to be able to build on the blockchain.


Lack of standards and governance –

No central authority governs public blockchain. While that’s great to build a trustless and open, it has its disadvantages. First, one is that there’s no who’s responsible for maintaining and upgrading the systems most efficiently. Even if some developers band up to create an organization, it leads to some form of centralization (take the instance of the Ethereum foundation.) However, we can’t even leave it completely open as over the years it’s proven ineffective on multiple levels.


Poverty in Available Tooling –

For any developer to work effectively and efficiently, the first requirement is adequate tooling. If inadequate, the developers can’t do much even with the best of the intentions. As a matter of factor, the currently available pool of tooling is not good enough, even for the most seasoned of the developers. Right from good testing frameworks to security auditing and even right blockchain analytical tool — the available tooling to a blockchain developer is severely limited. Along with hindering the potential of the technology, it also demotivates enthusiasts.

Conclusion:

Unfortunately, the hype makes blockchain appear invincible when the fact is that there’s a lot of work left. So, instead of making the technology glamorous, we need to focus on how to solve core implementation issues with the blockchain.

There’s not even an iota of doubt that blockchain is here to stay. However, the issues mentioned above and many more are not letting the technology become mainstream. It’s on us now — the developers, the investors, the blockchain enthusiasts — to work towards a unified vision.

RecordsKeeper streams vs RecordsKeeper assets

RecordsKeeper technology is a platform that allows the users to form a private blockchain. The entity then uses it to carry out transactions of varied nature. 

Its highly customizable nature highlights its advantages. It allows users to configure the max block size, the number of transactions, and even the type of transaction.

While setting up, roles and permissions to each user are assigned. But those can be reassigned and modified with time. Also, a vital feature of a multichain is that it can create multiple assets and not just one. As an instance, the blockchain active on the Bitcoin network can support only one coin — BTC.

What is a RecordsKeeper Asset?

RecordsKeeper allows establishment and support of assets at a native level. Each transaction type encodes classification of an ‘asset’ along with its quantity. Another feature of a recordskeeper is that it’s not necessary to have a native currency. The recordskeeper maintains and highlights the input-output ratio of an asset. Also, each transaction can contain any number of assets, as there’s no upper-limit to it.

Difference between Assets and Cryptocurrency

Cryptocurrency, as per definition, is a native currency of a particular blockchain which is open and publicly accessible. It also classifies itself as a new form of ‘money’ and thus can be sent, received, transacted, earned by anyone across the world. Bitcoin and Ether are examples of native currencies.

An asset, however, is a type of ‘token’ issued and is a representation of something that doesn’t derive its value straight from the chain. As an instance, a financial institution that issues an asset into a blockchain to indicate that it holds a certain value of ‘cash.’

What is a RrecordsKeeper Stream?

Unlike RecordsKeeper assets, the focus of Multichain Stream is to provide a reliable mechanism for general data storage as well as its retrieval. There’s no transfer of assets or change of ownership that takes place in this type of set-up. Every item that is a part of a ‘stream’ has fixed characters including publishers, an optional key for retrieval, a timestamp, and data. In fact, the data can be anything right from a small paragraph of text to quite some megabytes.

Think of legal firms — filled with lawyers, court cases, partners, third-parties. They’ll find use case with the multichain stream as they can record the case and other details. Multiple parties can then access this information without fearing data immutability or damage. 

Conclusion:

As for what is the best choice between recordskeeper assets and recordskeeper streams, there’s no single answer. The decision lies with the organization based on the results they are trying to achieve. It would depend on the context along with the long-term objectives of the organization that is building it. In general, however, if you’re looking to create a scarce ‘asset’ that can be owned or transferred, you should use multichain assets. However, if you’re looking for general data storage and retrieval without any change of ownership, then you can use multichain streams. RecordsKeeper technology has been a game-changer, and it’s here to stay.

Common Misconceptions about Blockchain

The market is abuzz with the advent of the blockchain. It has now become a ‘term’ which evokes strong public opinion, comments- whether valid or not. Let us begin by understanding the term blockchain. In simple terms, blockchain is a technology that serves as an alternative to centralized data storage. Instead of the data being stored on one or multiple servers which are prone to hacks, blockchain is distributed among computers. Radically challenging the status quo, blockchain works on a peer-to-peer verification of transactions. It allows for complete transparency as no single entity can possess the system.

However, the contemporary era is always ‘high’ on misconceptions surrounding any innovation. Just like the introduction of smartphones and internet dazzled the market and ‘legendary myths’ engulfed the mass, the world of blockchain has already created a lot of misconception.

DEBUNKING MYTHS

● The existence of the only Blockchain. Nooooo!

This belief is conclusively false. Although blockchain is commonly compared to the internet, unlike the internet, there are numerous blockchain- each designed to serve a distinct purpose. The common denominator is that they are distributed, have some form of consensus mechanism. Examples could be Bitcoin’s blockchain, ethereum, hyperledger, IBM and Microsoft blockchain, etc.

● Blockchain applications are used for criminal activities. Nooooo!

The collective mass is tied to the belief of cryptocurrencies supporting nefarious activities. It has its roots in the silk road and the dark web along with the mistaken belief of blockchains offering anonymity. While it is true that, to an extent, cryptocurrencies are a virtual boon for drug-trafficking, illegal pornography, and even terrorism, it’s ignorant to assume that it is an untraceable underworld enabler. On the open side, cryptocurrencies are a means to exchange digital assets. Bitcoin being a public ledger, there is always a record of any transaction taking place. The transactions can be traced anytime, anywhere, regardless the purpose of the transaction.

● Blockchain and bitcoin can be used interchangeably. Nooooo!

For beginners and most of the mass, blockchain is always understood as bitcoin and vice versa, creating a lot of confusion.
The blockchain was born with bitcoin, as the underlying technology. Simply put, blockchain is a technology whereas bitcoin is the application based on this technology. What bitcoin is to blockchain is what email is to the internet – its first ‘killer app.’

● All the Blockchains are public. Nooooo!

It is true that bitcoin, along with many well-known blockchains are public, but not all blockchains are. There exist private and semi-private blockchains with varying degrees of penetrability, approachability, and transparency. A public blockchain is open to the public where all the transactions are visible, and anyone can participate at any level. On a private blockchain, only parties with necessary keys can review private transactions. Technically, public blockchains utilize proof-of-work methodology whereas private blockchains use proof-of-stake.

● The Blockchain acts as magical data storage in the cloud. Nooooo!

The working of blockchain and cloud are poles apart. The common misconception is due to their intangibility. A blockchain doesn’t store physical information like PDF files or a word documents. It only provides for a proof-of-existence. Blockchain, conceptually, is a flat file, a linear list of simple transaction records. This ‘flat file’ holds code that certifies the existence of a particular document and not the document itself.

● The Blockchain is used only in the financial sector. Nooooo!

Blockchain technology was highlighted because of the introduction of bitcoin, its first application. Blockchain can be used in numerous areas referencing its implementation; finance incontestably is one of them. In fact, the Indian government is looking forward to employing the blockchain technology in education, health, and agriculture to fulfill its aim of India going truly digital.

● Cryptocurrencies are a replacement to traditional currencies. Nooooo!

As no single entity, corporation or a nation owns or controls the blockchain, it is often hailed as a revolutionary technology. With financial intermediaries,a.k.a middlemen flocking every sphere of our lives, this technology might bring in a new global economy. However, it is unlikely to happen, not anytime soon. The reason accounts for the exorbitant cost of mining, and also that blockchains are not scalable or efficient enough to support global usage. The difference can be seen in the duration of the transaction. Bitcoin can process a maximum of seven transactions a second whereas Visa can process thousands of transactions a second.

The blockchain technology is very much in its nascent stage- or experimental, according to some. The misconceptions mentioned above are few of many, and debunking such myths will provide a field for developers and researchers to produce more viable and efficient solutions. The blockchain technology can transform the society at all the levels. All we need is exploration and experimentation with the aim of a new invention.