Bitcoin Fundamentals, Samsung's 3Cs of Blockchain & AlternatETH

Off the Blocks | Vol 73, June 25, 2019

This newsletter is our weekly roundup of some of the significant blockchain news, that provides an overview of the rapidly changing blockchain landscape to help you map your blockchain strategy and be aware of regulatory announcements globally. Get your friends to Subscribe Here.

The Bitcoin Fundamentals Are A Shinin’

All data from as of 11:45PM June 24, 2018

Hashrate Distribution: An estimation of hashrate distribution amongst the largest mining pools. The graph above shows the market share of the most popular bitcoin mining pools.  

Hash Rate: The estimated number of tera hashes per second (trillions of hashes per second) the Bitcoin network is performing.

Miner’s Revenue: Total value of coinbase block rewards and transaction fees paid to miners.

Cost Per Transaction: Miners revenue divided by the number of transactions.

Confirmed Transactions Per Day: The number of daily confirmed Bitcoin transactions.

Mempool Transaction Count: The number of transactions waiting to be confirmed.

Estimated USD Transaction Value: The Estimated Transaction Value in USD.

Now some significant news form the world this week:

  1. Enterprise | Three Reasons Why Enterprise Blockchain Is Failing:

    • Platforms are self-focused and often lack an ecosystem view. Most platforms are often self-centered and focused on their own solutions, irrespective of other solutions out there. Some of the worst behavior is around this point, and it’s an area where all blockchain platforms need to improve.

    • Large consultancies are often old-fashioned in their views and tend to focus on how to make blockchain a revenue stream they can “own.” They often send sales teams who are less knowledgeable in blockchain and try to push one standardized blockchain solution. Unfortunately, the world has a little more color, and there are many different “mixes” of blockchain technology required to provide specific solutions for specific use cases.

    • Old-school business thinking means companies are often looking at “how to own” blockchain with intellectual property (IP), etc. Blockchain is an ecosystem play, and you cannot build standardized IP and roll it out on a regular basis. The fact that most blockchain platforms are open source (a general trend in tech now) enables better solutions to be built via the power of the total ecosystem. The focus should be on using these open-source platforms and tailoring each solution to the end customers’ use case.

      [… Read More on Forbes]

  2. 3Cs Convergence, Connectivity & Cloud | Samsung’s New Mantra: Samsung SDS introduced customers' common pain points in adopting blockchain and announced its blockchain business direction and the solution to the pain points. 
    When companies apply blockchain technology to their business, they have concerns on △Converging services across various industries △Connecting different blockchain technologies △Easy application and expansion of blockchain in timely manner. Samsung SDS proposes ‘3C’ solutions to solve such difficulties; Convergence, Connectivity, Cloud. To highlight its capability in Connectivity, Samsung SDS introduced its pilot project of connecting blockchain networks of China's Tianjin Airport and Korea's Incheon Airport to exchange air cargo data. [… Read More on Samsung’s website]

  3. Tech | Simply Explained: Blockchain Scalability Solutions — Past, Present, and Future: The first family of scalability solutions evolved around the idea that we could just stuff each block with more transactions. To do this, we could simply make blocks bigger. Or, we could make each transaction smaller. Examples of such implementations were Litecoin and Bitcoin Cash which hard-forked from Bitcoin to with smaller transactions and larger blocks, respectively. In practice, these efforts yielded 2–10x tps optimizations. The fundamental issue with these scaling solutions was that each change required a hard fork. This required the community to rally behind the new chains and subsequently led to limited adoption. [… Read More on HackerNoon]

  4. Research | The Risks And Unintended Consequences Of Blockchain: Blockchain doesn’t have a central database. Instead, it’s run on hundreds of thousands of servers. If one of those servers stops, the others keep running. “In that sense, distributed also means unstoppable,” Madnick said. But a lack of an on/off switch can cause problems. In 2017, hackers found a coding flaw in the Ethereum blockchain platform, and used it to siphon away millions of dollars. Watchdogs realized what was going on, but weren’t able to shut down or disconnect the system. Instead, white-hat hackers used the same coding bug to steal the remaining money faster than the criminals, and redistribute it. Madnick and Jae Hyung Lee, SM’19, are releasing a study on 72 publicly reported blockchain security breaches between 2011 and 2018. The research is part of an overarching thesis on blockchain security and vulnerabilities. [… Read More on MIT Sloan Blog]

  5. Manufacturing | Japanese Manufacturers Enter Blockchain-Backed Data Sharing Arrangement: Mitsubishi Electric and Yaskawa Electric are among 100 major Japanese manufacturers to enter into a data sharing arrangement underpinned by blockchain. The project aims to boost efficiency, lower the risk of data leaks, and reduce operating costs. It will be overseen by the Industrial Value Chain Initiative, a manufacturers group that launched in 2015 to promote the “internet of things” in Japan. Similar to the strategic Renault–Nissan–Mitsubishi alliance, the information sharing arrangement will include product design data, the status of production equipment and quality inspection information, thereby improving productivity and competitiveness. [… Read More on Coindesk]

The Final Word | Meet Alternateth: A ‘Friendly Fork’ of the Ethereum Blockchain

Image Courtesy: Coindesk

One ethereum community member is about to begin what one might call a “friendly fork” of the ethereum blockchain. Called “Alternateth,” James Hancock, project team lead at ethereum startup ETHSignals, told CoinDesk in interview that he hopes the network will act as “a sister chain” to ethereum validating ideas and proof-of-concepts before adoption on the main chain. The goal is to initiate the split in two months’ time.

For ethereum to be sound money, it needs to be very conservative in making changes. For ethereum to keep pace with competition it needs to keep making changes. These two ideas are in tension as it is difficult to do both well.

- James Hancock, ETHSignals

But outside of testing purposes, Hancock also sees Alternateth as a blockchain to support ethereum developers. Leveraging a block rewards mechanism similar to what is seen on the zcash blockchain, Hancock tells CoinDesk that a portion of mining rewards on Alternateth will be collected into a multi-signature address “comprised of multiple trusted community members.” At present, Hancock is rallying support for this new ethereum blockchain from other developers. In terms of miner support, Hancock purports that some general purpose miners on ethereum are already “ready to mine” the ProgPoW algorithm, which Alternateth will leverage from the outset. [ … Read More on Coindesk]

About Proteum
Proteum is a global blockchain advisory firm that works with public, private and start-up companies to help them transition into the world of blockchains and decentralized applications. We help companies strategically build their ecosystem and unique capabilities so that they can own and control their future. ProteumX, our accelerator program, invests in and accelerates the time to market for companies building blockchain solutions. |  | Twitter: @proteumio | ProteumX