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(Unlocking The Crypto Puzzle is an ongoing series of articles to help demystify cryptocurrency for everyone.)

Over the past few years, the cryptocurrency industry has gone through a number of changes — the rush to ICO’s; the potential of government regulation; and the move of “mainstream” investment to embrace crypto as a legitimate investment structure are just a few examples. But the world’s perception of cryptocurrency is inexorably tied to another core concept in the world of crypto — the blockchain.

I discussed the concept of blockchain, as it is currently used with Bitcoin, in detail in the very first episode of Unlocking The Crypto Puzzle. While the purpose of that original article was to present a simplified explanation of what a blockchain was, I did not go into any of the potential issues that using the Bitcoin blockchain has created. …


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(Unlocking The Crypto Puzzle is an ongoing series of articles to help demystify cryptocurrency for everyone.)

Proof of Work… Proof of Stake… Proof of Trust. Year after year, Technology keeps advancing at an astounding rate. In 2009, we all thought Satoshi Nakamoto was a genius to apply Proof of Work (POW) to his Bitcoin Blockchain. Yet as the years went by, we began to see the limitations of POW in terms of cost and scalability.

Many set their sights on Proof of Stake (POS) as a viable alternative. It requires less energy to run the algorithms, which in turn means less cost passed down in transaction fees. It is also much faster. …


(Unlocking The Crypto Puzzle is an ongoing series of articles to help demystify cryptocurrency for everyone.)

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Proof of Work… Proof of Stake… Proof of Trust. The challenge of creating the best blockchain for cryptocurrency has never been more important… and more complicated.

Proof of… is a concept used in cryptocurrencies that is at the center of how blockchains work. In the last part of Unlocking the Crypto Puzzle, I discussed Proof of Work (POW) and how it’s algorithmic puzzles are the cornerstone of Bitcoin’s blockchain model. …


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In the beginning, there was Proof of Work… and it was cool. Proof of Work eventually begat Proof of Stake, promising to make life easier for some. And finally, Proof of Work and Proof of Stake begat Proof of Trust, which again changed the rules (and the speed) of the game.

Proof of… is a concept used in cryptocurrencies that is at the center of how blockchains work. Over the next three Episodes, I’m going to explain how each works and why they are important.

PART 1: PROOF OF WORK

If you’ve spent any time inside the realm of cryptocurrency, you’ve probably heard the term Proof of Work (PoW). And you may even know that it’s got something to do with mining cryptocurrency. But unless you are truly immersed in the minutia of how crypto mining functions, you probably don’t realize what an important part it plays in making the whole crypto puzzle work. …


The Lightning Network vs Ripple vs OMC/COTI

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It’s been an interesting month in cryptocurrency and its ascendancy into the realm of instant payment transactions. As different industry players seek to solve the issue of real-world fast and efficient transacting, who will deliver the goods?

Two potential giants in the industry continue to move forward, but you could be forgiven for thinking no one appears to care. And a young upstart finalizes a new technology that could revolutionize the use of crypto in retail transactions.

Earlier this week Ripple announced that Ria Money Transfer, the 2nd largest money transfer company in the world, has signed an agreement to use the RippleNet technology to access Ripple’s global blockchain payment network. …


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In what is turning out to be one of the big puzzles of 2019, people are again scratching their heads trying to ascertain what exactly IS a stablecoin, why certain coins should qualify as stablecoins when others do not, and what the U.S. Securities Exchange Commission (SEC) is going to say about this new category of cryptocurrency. In fact, the legal status of stablecoins has been a topic of serious discussion since mid-2017.

At this year’s SXSW festival, held in Austin, Texas in mid-March, Valerie Szczepanik, the SEC’s newly appointed “Crypto Czar”, took part in a forum where she spoke candidly about a number of subjects in the cryptocurrency realm. …


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(Unlocking The Crypto Puzzle is an ongoing series of articles to help demystify cryptocurrency for everyone.)

Bitcoin Has a Problem

In the beginning, Satoshi created Bitcoin. And that’s where the problems started.

If you ask the average cryptocurrency enthusiast what the problem with Bitcoin is, they would probably mention the volatility in value. And while that has been dampened somewhat during the 2018 bear market, for many of us owning Bitcoin has been a bit like riding the world’s most insane roller coaster.

But that’s not Bitcoin’s biggest problem. The biggest problem is scalability. What do I mean by scalability? Simple… Bitcoin’s blockchain is slow. As in S………. L……… O………W. While it was a revolutionary concept to be applied to a peer to peer electronic cash system, the fact is that as a method of conducting payment, it is not designed to grow into a truly global high-volume transacting system. …


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Recently you might have noticed a shift in terminology across the Ormeus group of products and services. With the upcoming release of the Ormeus Cash Coin (OMC) and our recently announced working partnership with COTI in their state-of-the-art point of sale system, the team at Ormeus felt there was a need to redefine what Ormeus is and how all the various pieces work together as a harmonious whole. It was this desire to provide an overview of our structure that led to the creation of a new name — The Ormeus Ecosystem.

The parent of this Ecosystem is Ormeus Coin (Ormeus). This organization is a DAO — a Decentralized Autonomous Organization. This means the organization is run by a pre-determined set of rules and guidelines that are permanently a part of the organizational structure through the use of smart contracts, which is a piece of code. …


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On February 20, 2019, Crypto Finder published a video interview with Jesse Lund, the Vice President of Blockchain for IBM. During that interview, the host asked him what he thought the value of Bitcoin was going to be by the end of 2019. Lund speculated that he thought the coin would be worth $5000. But then he went on to say “I see Bitcoin at a million dollars, someday.”

Why is this important? Well, to begin with, Lund is far from the first person to predict that Bitcoin will be worth one million a coin someday. Entrepreneur and PayPal board member Wences Casares has stated his belief in the eventual one-million-dollar value for the coin. John McAfee of McAfee anti-virus software fame has predicted a million a coin by 2020, while Investor Tim Draper actually is predicting a long-term valuation of $2 million. …


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Back in the summer of 2018, the United States Securities and Exchange Commission (SEC) stated, in separate statements within 2 days of each other, that it doesn’t consider Bitcoin or Ethereum as securities.

The SEC stated that the highly decentralized nature of Ethereum, with no central authority or company controlling it, does not currently meet the standards that would make it a security. Likewise, they pointed out that Bitcoin is a replacement for sovereign fiat currencies and that this type of crypto is not a security. While this was clearly great news for cryptocurrency overall, it does lead to a question. …

About

Taaz Gill

professional writer & producer; cryptocurrency advocate; cat lover

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