Traditional business models are centralized and are controlled by a single authority. Centralized business models are made in such a way that they tend to get sales and users. As the sales and users are gain, more profit margins are generated and the business grows bigger. Users of the business are not related to each other they have no connection except for the centralized company that they are part of.
In the recent years, a new type of business model has introduced which is known as the Decentralized System. This system is free of centralized power and free of any authority. The decentralized power has brought in a new type of business that has revolutionized a lot of industries and business trends. This Decentralized power is made by the technology called blockchain. The blockchain is built on technology, not on humans or organizations. This means it does not need any sort of management to look after; neither does it need any sort of profit or financial support. One of the best perks of blockchain technology is that brings the users close to each other, this makes sharing of information easier, simpler and safer.
Blockchain technology is a platform that lets developers create shared digital databases. Most of the businesses have moved to or planning to move to the decentralization system. In fact, when implemented into business firms, it makes a very systematic allocation of power at all levels of management throughout the organization. Hence, the distribution of decision making power reduces pressure on the higher management.
Blockchain and Peer To Peer Technology
The peer-to-peer (P2P) system enables the participants to log into the system of records stored in the digital database. This has greatly affected the banking sector. There is a shared ledger with the participants of the network, this allows proper management and accordance with the transactions performed within the business, this reduces project costs and execution time in the process. Although blockchain is still in its very early stages, yet the technology has been initiated in a large number of projects in the finance world.
According to a study by IBM, every one-third of C-level executives are planning to implement the blockchain technology in their organizations. It is believed that in the near future, blockchain will contribute to a very secure system that will gain users utmost trust and will also strengthen the company.
Similar to the P2P technology the blockchain technology provides a platform that is used to store digital contracts. The advantage of this system is that it is transparent and that would provide trustworthily and no fraud business that will profit in a huge sum. The payments would be transferred to both the seller and the buyer eventually. The same case with the retail market, the final invoice of the transactions will be sent to the customers directly which eliminates any middle person. There are several advantages of Blockchain technology.
Cross-border Payments
Usually, the overseas transactions take about 2–3 days completion, which is an expensive process. This mess is eliminated by the blockchain technology, as it shortens the time to very less; it is also really cheap and easy. A survey showed that the cost of blockchain transactions were 3% lesser than the real-time transactions on a global level that took place across borders.
Digital Identity
The blockchain is a digital world. Hence everything is digitized, including the bio-data of the user. Once the bio-data of a person has been uploaded to the blockchain, it always stays in there. The concerned people or financial sectors can easily look up for the data of the person easily. This will reduce the time taken for verification and authorization of the user. Furthermore, the users will complete power to choose who do they want to share their data with, so this prevents any fake accounts.
Share Trading
The implementation of blockchain technology in the trading sector is really making headlines every day; Bitcoin, Ethereum, and other crypto-currencies are just some of the examples of decentralized and secure ledger system. New digital currencies like eLira, BitCoin, ZCash, LiteCoin Gold, Ion, and Dash are some of those which are competing against the fiat currencies.
Distributed Cloud Storage
The decentralized system has also enabled distributed cloud storage, which means the users can buy extra storage space. This will ensure for user more security that the data will be scattered to multiple places using the blockchain technology. The ability of remembering and keeping a track of all transactions in financial sector makes it better than a centralized system.
Blockchain Transforms Business Networking
One sector that blockchain will surely alter is social networks for money makers. Normally, a social network is regarded with risk, doubt, fraud, and information shared by users can also be used by the centralized system to drive traffic to specific links and places that can generate revenue. This benefits the third parties but it also brings a lot of disadvantages such as; personal privacy jeopardized, ownership of information is unknown and no data protection. Centralized management is not responsible for any of this in the end because they do not share information on their own, it’s the users.
A blockchain technology-based company called Indorse offer the decentralization of the issues caused by centralization of social networks. It is using tokenization and consensus to deal with these inherent issues in professional social networking.
Indorse is made on the Ethereum network platform and it uses two tokens, Indorse (IND) and Indorse Score (SCR). IND is the main functional token on the platform, which can be earned by users by any sort of positive actions on the platform. IND is tradable with crypto-currencies which mean that the profit generated by the content of users will be sent back to them as tokens. Platforms like LinkedIn and Facebook are big money makers and Indorse promises to recreate their structure using the blockchain technology.
Setting Banking Free
The blockchain is also wiping the centralized management from the banking sector. In real-world banking handling the money is more expensive, blockchain technology reduces this problem by letting the users share information. Transactions made on digital networks are just sharing of information. A crypto-currency called LakeBTC, which is one of the world’s largest BitCoin exchange digital currency, has designed a system called LakeBanker that is built on a decentralized structure. Their aim is to make banking free for everyone.
Blockchain
Blockchain technology is spreading beyond Bitcoin. While many people see the blockchain as a competition for existing payment methods or gold, some believe blockchain technology is the world changing points of the time. In a world with so many blockchains and tokens built atop of them, there are entire industries that are made through software; blockchain is surely the next phase of the internet. Up till now, Bitcoin companies have profited more than a billion in funding.
Ethereum on the other hand, a blockchain protocol that allows complex financial transactions to be recorded by anyone or the users performing the transaction and sorted in an accurate manner by a distributed network in a ledger. It has raised more than $250 million from the backers all around the world.
Purpose of Blockchain
The blockchain is the technology on which BitCoin is built. As said before, it is the next generation of the internet which has taken the digital world to a full swing. It is often referred to as Decentralized Web or Web3. Blockchain is a very trustworthy technology as it overcomes the risk of fraud. It is built on architecture for so-called trustless trust. It forces everyone to trust the outputs of the decentralized system without trusting anyone within it.
A Blockchain protocol is built on a P2P network that runs the protocol and holds the same copy of the ledger of transactions as they happen, this transaction ledger is saved with all the participants of the transaction, enabling P2P transactions without a middleman or third party. Blockchain itself is a type of digital file that is shared among the users of the system.
The advantage of a transaction ledger that is publicly visible is that there is no chance for fraud or bogus people to benefit from it. Due to this reason, blockchain is said to be trusted, because the power of authority is distributed among the users, the users keep an eye out for what transaction is made and with complete privacy of the users. It is a distributed digital database that maintains every list and record of transactions, cryptographically secured by constant revision.
Transaction Ledger
The transaction ledger is created on a linked list program or maybe on a chain of blocks, where each block contains a number of transactions that are validated by the network in a particular time. As said before, the ledger runs on a peer-to-peer (P2P) network of computers that has records in a digital database. These records of transactions are validated by the network. It essentially eliminates the need of traditional trusted third parties.
The ledger was first identified in 2008 October as the module of Bitcoin. The aim was to have P2P money without banks. All the network transactions would be stored in a blockchain. For example: If this technology was implemented on Google docs every person using it would have the latest version of it and every person using it could check the document. However, if any alterations were made to the document it would only be possible if both of the end users agreed to the change. If the changes are done, then the changes would be not noted by the Google but all the users using the application would save the changes into their own ledgers. All transactions histories are recorded in the distributed ledger.
Removing the Middle Man
One of the most important points to look at in the blockchain technology is the removal of the third party. People voted very less for being under the supervision of trusted third parties. A lot of people voted for being in control of their own transactions and supervision. Users wanted P2P networks because they are easy and simple to use. The blockchain protocol implements the validation of transactions on the P2P network.
In terms of Bitcoin, instead of bank confirming financial transactions, users validate the transaction of sending money from person A to person B, checking the digital ledger of who owns the money, a P2P network of computers running the BitCoin protocol validate transactions by checking other ledgers. The validation rules of the BitCoin looks after the participants in the network and how they interact with each other. They are given as follows:
- Is a transaction is valid or not
- Transaction costs
- Validating transactions with a cryptographically generated token
- Rules to change current rules of consensus
Tokens
Tokens are made for general purposes blockchains like Bitcoin and others that are traded instead of real cash. Open source project makers can directly monetize their network. Before this, successful open source projects just like the torrent or the Tor network protocol were not monetized at the protocol level. However, now the founder of a decentralized network can issue blockchain based tokens that show ownership in the network and have monetary value to it.
These token do not have a value themselves, they represent ownership to the user and are worthless in reality. However, they are used to participate in a network of the blockchain. They are used to buy or sell storage in the distributed database. The root owner of the network keeps about 10% of the tokens for himself; if the network gets popular and its demand increases in the market then the value for the token is increased and since the number of tokens are limited the value of tokens doubles at the rate of demand. This is a good strategy in case the network starts to gain attention; the founder can hold the tokens until the prices increase. If needed to continue funding the network, the founder can simply sell the tokens on the open market for the values that they have reached.
It is not just the founders who benefit from it, the tokens are open source and so they can be bought on the open market. This means that the founders allow participants to own a fraction of the network using tokens; this would usually increase the demand and value of the tokens.
An aspect to understand the value of the participants is the internet user. Typically a person using the internet is a part of following websites: Facebook, LinkedIn, Twitter, Uber, Airbnb, eBay and etc. In each of these websites, the network’s value is increased by the traffic of the participants on the network. However, the revenue generated by each user of the network solemnly goes to the owner of the network. This is the idea that blockchain promises to eliminate. The revenue generated by each individual should be directed to them. It is a really complex system, the architecture of blockchain is made in such a way that the participants anticipating in the network will be able to earn by their contribution within the network. It is like a user actually earning money when working on social media.
Market capitalization of blockchain assets is nearly 13 billion dollars. When the blockchains from all over the internet of different networks start to replace the centralized web services which have a pretty powerful hold over the internet, then the whole world will come to notice that the internet has been through a really massive change of generation.
eLira: The Latest Middle Eastern cryptocurrency
eLira is Middle East based cryptocurrency which has dropped over 1 million tokens all over the world in its first go. It has done following objectives:
- eLira crypto currency is built with the peer to peer technology which operates with the blockchain technology
- ELira has currently dropped approximately 1,319,000 eLira tokens via Airdrop in its first go
- Approximately 25,000,000 eLira tokens are given away to the participants who actively participate in the bounty campaign of eLira.
- The root cause of such a huge airdrop on the first round is to create awareness in the people about the latest Middle Eastern project, the eLira official ERC-20 token. This is due till June 2018
The latest Middle Eastern cryptocurrency eLira is really simple to understand. The pace of adaptation of cryptocurrency exchange is very slow in the Middle East as compared to the West.
Rules and regulations of Middle Eastern countries, limited access to exchanging products via cryptocurrencies and also very limited internet access, these are all issues thatcontribute to the slow pace of adoption of digital currency trades. To overcome all these hurdles of the Middle Eastern countries, eLira inaugurated its own crypto currency.
eLira: a Peer to Peer Cryptocurrency
The ELR (eLira) Token is built on a ERC20 basis, which means it runs on blockchain security and full proof transaction processes. This also means that like Bitcoin and Ethereum and others, eLira can also be used to pay for bills, send payments, shop online or may be offline or perform transactions anywhere wherever eLira is accepted. eLira allows its users to use their own cryptocurrency exchange to offer P2P cryptocurrency exchange.
For those who have traded in cryptocurrencies or may have bought them or made any sort of transactions, they know that it is far easier than doing anything with fiat currency. In order to exchange, buy or sell the digital currency a user need to register with a platform that provides a digital wallet. It is not necessary that the digital wallet will hold all the types of currencies. There are different wallets for different currencies. In terms of eLira, things are different, they are as following:
- The eLira wallet app enables users to make their own eLira exchange
- eLira has an app for the users to find other people, who might want to buy, sell or exchange the tokens in their local area
- To fight the fraud and bogus users, eLira has a feature called state of art Escrow system which will release the currency when the payment is authenticated by both end users
- The Escrow system in eLira can set up smart contract based payments between users and businesses
- eLira wallet users can send tokens of eLira to users anywhere in the world
- eLira crypto currency can be sold, bought or exchanged in return of any other crypto currency like BitCoin Ethereum LiteCoin or any. It can also be done with fiat cash.
The New Kind of Cryptocurrency
Looking at the current situation of the crypto currencies in the Middle Eastern countries, millions of users in the Middle East and Asian countries are excluded or have no idea about this new form of currency and all the features of it. eLira promises to make the digital currencies more accessible to the people of these countries. eLira users will not have to rely onto other cryptocurrency exchange platforms or any other financial authorities.
