How Each E-commerce Platforms are Unique & Their Approach Towards the Internet Economy in Malaysia Pexels / Pixabay The Malaysian e-commerce market is on a growth trajectory set to reach 21% growth by 2020, according to the Malaysia Digital Economy Corporation (MDEC). In a 2018 interview with International Trade and Industry Deputy Minister Datuk Ahmad […]
The Race To The Top: The Internet Economy In Malaysia
Ripple’s XRP is the world’s third-biggest cryptocurrency in terms of market capitalization, and over the past few years, the company has been engaged in extensive deal-making in order to make the cryptocurrency go mainstream in a big way.
The company has also built up a wide range of products in its ecosystem that seeks to make the usage of XRP more prevalent in the global economy, and one of those products is Xpring. The Xpring initiative is aimed at buildingwhat is called the ‘internet of value’ and making the participants in the ecosystem use XRP …
While crypto fanatics have been buzzing with news about bitcoin price surges and Facebook’s introduction of its digital currency libra, the Bitcoin 2019 conference brought together some of the most significant people in the BTC community for a two-day event to discuss the current and future state of Bitcoin.
These two crypto scientists are particularly notable because they were directly cited by Satoshi Nakamoto in the Bitcoin white paper. At Bitcoin 2019, they came together for a discussion with Bitcoin YouTuber Naomi Brockwell about their contributions to the creation of Bitcoin and where they foresee the original cryptocurrency going in the years to come.
Stornetta’s Contributions to the Development of Blockchain
Stornetta co-authored three papers cited in Bitcoin’s white paper and was one of the first people working on creating a system that did not require people to trust a central authority. In the early days of Bitcoin, Stornetta realized there was a problem with recording transactions, so he suggested the creation of immutable records in order to track all bitcoin transactions.
“We’re going to not be able to know the difference between an old bit and a new bit, and all of the world’s records are going to be in bits, and that’s going to create a crisis of credibility,” as Stornetta described the problem during his conference panel.
According to Stornetta, he and Stuart Haber, who is also credited with the creation of blockchain technology, were struggling to solve the problem, so they decided to create a publication that would prove it is impossible to build an immutable record without a central authority. In writing it, Stornetta said they were able to figureout how they could build an immutable record with the use of a blockchain.
Back’s “Proof-of-Work” Concept
In 1997, Adam Back introduced Hashcash, a “proof-of-work” system that would help users of the internet detect and avoid spam email. Hashcash worked to ensure users were only accepting emails from others who provided proof that an effort was made to send the email.
The “proof-of-work” concept was carried over into the world of Bitcoin to enable competitive mining of blocks. By using a trial-and-error method to mine bitcoin, miners that are able to verify proof of their work and successfully mine a block are rewarded with bitcoin as payment.
“Satoshi made use of the hashcash idea to create the mining,” Stornetta said. “It’s easy to see in hindsight huge incentives were needed to kickstart (bitcoin).”
The Future of Bitcoin
For Stornetta, the future of Bitcoin is broad and diverse. Stornetta told the audience at the conference that he is a “fundamental believer” in crypto technologies and their ability to level the playing field.
“I am not a crypto anarchist, but I certainly am a crypto libertarian, and I think we are going to get the world that we want and that we deserve, we just need to find a path that leads from A to B,” Stornetta said.
Stornetta said he believes distributed ledger technologies will continue to advance and diversify in the future, and that he sees a potential for other currencies besides bitcoin to flourish.
“It doesn’t all just have to be about money, of course,” Stornetta said to the crowd. “I’m a big fan of the distributed ledger and how that can create quantization and tokenization of assets … I just think we’re gonna see such a broadening and diversification of this.”
“A New Paradigm”
Back also touched on the quick development of cryptocurrency technologies and the challenges of keeping up with the pace of new ideas and implementations of them, even for technical people. Back discussed how there are still areas of innovation that have yet to be realized. He further noted that blockchain and bearer electronic cash are new building blocks that have implications with smart contracts.
“Basically, it’s like picking up a new programming language with a new paradigm, and it takes a lot of people to natively understand it and reach the conclusion of what kind of conclusions you can build with it,” Back said.
Back mentioned the development of the Lightning Network and state chains to further his point about how advancements within crypto technology are being made at a rapid rate. He also discussed his reasoning for why multiple cryptocurrencies may not be a necessity in the long run.
“In terms of coins, I tend to view it as sort of like TCP/IP — that there’s one interoperable standard,” Back said. “Any kind of innovation can be adopted in layers or, ultimately, people can import Bitcoin’s UTXO set to another data structure if a new data structure is found.”
Disclaimer: Bitcoin 2019 was produced by BTC Inc, the parent company of Bitcoin Magazine.
The Cambridge Bitcoin Electricity Consumption Index (CBECI) provides estimates for Bitcoin’s real-time and annual electrical appetite with a live data feed that updates every 30 seconds. These data points are divided into three categories: upper bound, estimated and lower bound consumption. Together, they give a liberal, average and conservative spread for Bitcoin’s actual power use.
CBECI’s team provide all three figures in order to weigh all possibilities, crunching a hodgepodge of various network and mining data. The estimated figure — currently at 7.5 GW for real-time and 53 TWh for annualized consumption — is the tool’s best guess for an accurate appraisal of Bitcoin mining’s electrical cost.
Bevand pooled data from popular mining hardware manufacturers — some, like Genesis, were more generous with their products’ information — and, using the network’s hashrate to gauge how many miners could be running, used this ASIC data to derive an estimate of the blockchain’s total electricity consumption.
Bevand breaks his numbers down into an upper-bound category that assumes miners are using the least efficient hardware available, a lower-bound category which figures they use one of the top-three most efficient ASICs, and an estimated category that meets in a more realistic middle.
The Cambridge model also follows a similar logic in comparing hashrate, hardware efficiency and profitability, but it then factors in the efficiency of the data centers that house mining farms and the average cost of their electricity. Its lower-bound model, for instance, assumes that miners are utilizing the most efficient hardware possible and that their facilities operate with a 1.01 power usage efficiency (PUE). The upper bound assumes the opposite and a 1.2 PUE. For its best-guess estimate, Cambridge takes an average of the hardware efficiency of the other two models and applies a 1.1 PUE. Each model then assumes the global average price for electricity is $0.05 kWh (a value derived from “in-depth conversations with miners worldwide,” the post reads).
Cambridge concludes its report with the model’s limitations: Assuming an average global electricity cost doesn’t account for dynamic factors like region and seasonal circumstances, and the mining specifications manufacturers provide might not be wholly accurate (Cambridge may not have been privy to data from the most efficient hardware, either).
Visually, Bitcoin’s annualized electrical appetite looks like this:
On the tool’s website, you can adjust the average electricity costs to play with the model — if you raise it to the max at $0.20, for instance, the estimated power consumption drops to 32 TWh, while dropping it to $0.01 raises it to 62 TWh.
If you were worried about using 53 TWh per year to secure the internet’s endogenous monetary system, Cambridge also offers a comparison section to see how Bitcoin stacks up to some of the world’s other electrical needs.
On average, 25,082 TWh of energy are produced every year and 20,863 TWh of this is consumed. Bitcoin accounts for 0.21 percent and 0.24 percent of this total energy, respectively. The study also makes the pointed observation that idle devices left on in U.S. households each year could power the entire Bitcoin network four times over.
Oh, and Bitcoin could power all tea kettles in the U.K. for 11 years (or 1.5 in the EU and U.K.).
It also compares Bitcoin’s use alongside other countries’, and yes, Bitcoin uses about as much power as a small country (Switzerland or Nigeria, for instance).
But let’s put this into perspective with other industries: Gold mining, according to figures cited in a 2014 CoinDesk article, consumes 131 TWh each year, and this doesn’t include recycling and refining processes for jewelry. Between ATMs, branches, transportation and server uptime, banks and credit card companiesburn roughly 100 TWh annually. We haven’t factored in the internet yet, either, which Standford Research Fellow Jon Koomey estimates might account for 10 percent of the world’s total electricity consumption.
That’s 50 times what Bitcoin puts out, and yet no one questions whether that’s worth it.
377053 / Pixabay The week is off and running with a major internet outage affecting a multitude of services, including Google, Amazon, Reddit, Discord, Cloudflare and many others. Given that Cloudflare serves so many major websites, it seems possible that the widespread internet outage may stem from there. A message on Discord early this morning […]
Internet Outage: Google, Amazon, Reddit, Cloudflare Down