blockChain

blockChain

Blockchain is a buzzword. In time, it will fizzle out just like others have.

If that is what you think, I bet you are wrong.

It is seven years since Satoshi Nakamoto published the Bitcoin whitepaper. Investors have so far put a little over $1 billion into blockchain related startups. And the graph is upward looking. About $200 million of that investment has flowed in during the first half of 2016.

What’s more, every sector you focus on, there is a startup working on a blockchain solution. That ranges from finance, health, asset management, agriculture to public administration.

What exactly is special about blockchain?

Blockchain renders trust unnecessary in human interactions.

That is a new reality. It is because of trust that merchants have always shipped from one corner of the globe to the other. It is because of trust that we’ve achieved law and order in our societies. And indeed it is because of trust that civilizations have flourished.

For the most part, however, we’ve exercised that trust through intermediaries. Thus, financial institutions have been the intermediaries between lenders and creditors. Insurance companies are the intermediaries amongst those seeking to pull risks together.

And the government is the intermediary amongst the citizenry of a country.

In turn, the selling of trust has been a very lucrative enterprise. A glimpse at the books of account of financial institutions, for example, will attest to this fact.

But the intermediaries have also often betrayed this trust they hold on behalf of others. For example, the collapse of the banking industry in 2008 was a result of bad investment decisions that bank executives made.

And that led to close to 9.3 million families losing their homes and investments. Unfortunately, in the past, societies haven’t had options to replace the centralized management of the trust.

But that is changing now.

The blockchain is heralding an age when, for example, a small trader in Africa can borrow credit directly from a fellow entrepreneur in the US. And you can purchase a property from a stranger without notaries and lawyers. And all that is possible with little scam risk.

What is the impact of that?

The cost of doing business will go down significantly. That is because the cut that the middle person has been taking isn’t on the budget.

What is the blockchain?

Blockchain is the technology beneath bitcoin. That is the first ever successful decentralized digital currency. But the easiest way to make sense of it is to think of it as a ledger. A continuous record of transactions.

Just like what the commercial banks keep.

Every time you withdraw from your account, the bank makes a debit entry on a ledger. Every time you deposit, the bank makes a credit entry on the ledger. It does the same every time you use your card or take a loan.

And part of this ledger is what you receive as a bank statement. The blockchain is the same in many aspects.

Just like with the bank’s ledger, when you send bitcoins, an entry is made on the blockchain against your public address (a string of alphanumeric). When you receive bitcoins, an entry is also rendered on the blockchain. Thus the blockchain is a ledger that shows who owns what at what time.

But there are major differences between the bank’s ledger and the blockchain.

First, the bank’s ledger is centralized. It is only the bank that creates, maintains and stores it. On the other hand, the blockchain is decentralized. No one entity owns it. It is a property of a network of nodes.

Every node in the network keeps a copy of this ledger. What’s more, all the copies are synchronized in real time.

Secondly, it is accessible for anyone to read and write on the blockchain (especially the public blockchain). But far from what you might think, this doesn’t affect the credibility of the records.

And how does that work?

That is possible because for you to write on the blockchain, you must follow rules entrenched in its core software. You must also do energy intensive work with your computer, which makes it costly to write bad data. Lastly, the entire network must approve your entries.  

Bitcoin is on a public blockchain. Another public blockchain that has grabbed the attention of many is Ethereum.

Satoshi Nakamoto designed the bitcoin blockchain with currency in mind as the primary application. On its part, Ethereum aims to support a broad range of applications.

In May 2016, a Decentralized Anonymous Organization (DAO) on the Ethereum blockchain raised close to $160 million from investors. The DAO is a company with no offices, CEO nor a board of directors. A code guides all its processes, and all shareholders get to vote on every decision.

The other type of blockchains that showed up in the recent past is private blockchains. As the name suggests, you can only read or write on the private blockchain with permission from the owner. It is the opposite of the public blockchain.  

The third type is the consortium blockchain. This is where different players come together and build a blockchain to which each of them becomes an equal node. One of the consortium blockchains is R3Cev, which is a project by over 40 major financial institutions.

Some of the commercial banks behind R3Cev include JP Morgan, Barclays Bank, and Goldman Sachs.

Another blockchain consortium is the Hyperledger. This is a project that Linux Foundation is leading with the support of close to 50 financial institutions and major technology companies. Some of the names supporting that project include IBM, Intel, and Hitachi.

Why should North Dakota care?

Already several states are embracing the blockchain technology. For instance, on 6th July 2016, North Carolina Governor Pat McCrory signed House Bill 289 into law. The new law gives clarity to bitcoin and blockchain businesses.

On 2nd May 2016 Delaware Governor, Jack Markell unveiled a plan to embrace the blockchain. By providing an enabling regulatory and legal environment, the state seeks to attract blockchain companies.

It is the right time to get involved. The world is waking up to the realization that the blockchain should fuel our social, economic and political relationships.

Demonstration of how to buy bitcoin at my Bitcoin ATM Kiosk.
Grand Forks, North Dakota
4200 James Ray Dr
Appointment form: digitalkiosksystems.com
Twitter:
@SummerBTM
@DOSHostNet

DOSHOST.net – DigitalKioskSystems.com is excited to share that our Project SkyHook Bitcoin ATM Kiosk is open for business in Grand Forks, North Dakota! Monday through Friday 8am to 5pm ~ by appointment. Please fill out the form below or call 701.203.2002 to request an appointment. Appointments are required and drop-in customers will be asked to visit this website form or call 701.203.2002 to request an appointment.

Bitcoin ATM Kiosk Location:
DOSHOST.net – Daniel Schott
4200 James Ray Dr
Grand Forks, ND 58202

 

Important information for customers:

  • The purpose of this Bitcoin ATM Kiosk is educational and we hope to provide a safe learning environment for those interested in Bitcoin.
  • Customers that are approved for an appointment will be required to provide; government issued ID, address information, and a phone number.
  • Customers will be required to sign a waiver that they do not intend to use the bitcoin for unlawful activity.
  • Customers should have a Bitcoin wallet on their phone or a paper wallet. In the future we will have  offline Crypto Cards available for purchase.
  • Please provide several Dates and Times in the following form so that we can best service your request to purchase bitcoin.
  • Max transaction amount is US $100
  • The cost for bitcoin is Bitstamp quote + 1%

Hello,

We have decided to rename our Bitcoin Meetup to “Grand Forks Bitcoin Education Classes”. The new name will help everyone understand our intentions for the meetup. Our goal is to provide free educational sessions to those interested in the new technology of digital currency (Bitcoin).

Meetup Webpage:
http://www.meetup.com/Grand-Forks-Bitcoin-Users/

Next Free Education Class:
TBD

About:
——
Individuals from Eastern North Dakota interested in learning about digital currency (Bitcoin). Free class sessions will be provided for individuals to share ideas and learn more about Bitcoin. Meetup participants are invited to use the meetups for only educational purposes. Everyone is welcome and all meetups are completely free to attend.

Bitcoin ATM Comes to North Dakota – First in the State

SkyHook BTM DOSHOST

SkyHook BTM DOSHOST

DOSHOST.NET, based in Grand Forks, North Dakota today announced North Dakota’s first Bitcoin Automatic Teller Machine. Unlike traditional ATM’s used to deposit or withdraw money from a bank account, the bitcoin ATM enables the public to buy bitcoin digital currency. When customers buy bitcoin from the ATM it is directly deposited in each customer’s bitcoin electronic wallet. Manufactured by Skyhook, the ATM is light-weight and transportable, allowing DOSHOST.NET to bring it directly to interested customers.

DOSHOST.NET has been in discussion with North Dakota’s Department of Finance as well as State Senators to make them aware of this new service and to allow input from State government on how they would like to see it used.

Daniel Schott, CEO at DOSHOST.NET, explained that once approval is finalized, “We will begin transporting the ATM to various locations across the state because we know there are many people in North Dakota who would like to own bitcoin currency. This ATM gives consumers an easy and secure method to exchange dollars for bitcoin.”

Bitcoin digital currency is being accepted by a growing number of online retailers. Overstock.com, Expedia and Tiger Direct are a few of the most recent national companies announcing they now accept payment for goods and services with bitcoin. King’s College in New York City also reports it will accept bitcoin in payment for tuition and other college expense, claiming it reduces costs compared to conventional payments.

How It Works

DOSHOST.NET’s new ATM gives users an easy way to buy bitcoin. The customer displays a QR code from his or her smartphone bitcoin wallet app. There are no cards to swipe or PIN’s to enter. The ATM scans the QR code and registers the customer’s bitcoin wallet as the destination for the transaction.

Then, the customer inserts cash into the ATM. The ATM counts the cash and presents a screen that shows the equivalent bitcoin value. With one bitcoin trading at around $565 today (June 21, 2014), a $20 purchase deposits slightly more than 0.035 BTC into the customer’s wallet.

What Is Bitcoin?

Bitcoin is a digital currency, not a physical coin or bill. It is created by a decentralized, worldwide peer-to-peer network that manages and tracks every transaction no matter where it originates. The network uses military grade cryptographic procedures to enforce security. As a result, transactions using bitcoin are extraordinarily secure. There are no PIN numbers, credit card numbers or CVV numbers to be stolen. Everything is handled through your electronic wallet that connects you to the network.

How Do I Spend Bitcoin?

Once you’ve received bitcoin, spending it (or saving it) is simple. Your wallet allows you to buy online from any vendor anywhere that accepts bitcoin. A domestic or even an international transaction typically takes only about 10 minutes to complete and be verified. During that time there are no banks or credit card companies applying fees to the transaction. In fact, the bitcoin network itself charges no fees except in the case of very small purchases – and then those fees are as little as 10 to 40 cents.

What You’ll Need

Because bitcoin is a form of currency, tax regulations apply to your ownership of bitcoin. Customers should be prepared to present a valid government-issued ID and to provide contact information including legal name, address and phone number. Using a smart phone is the easiest way to buy bitcoin, however the DOSHOST.NET ATM can scan an electronic wallet’s QR code even from a copy printed on paper.

Bitcoin ATM’s installed elsewhere may use “exchanges” at various international locations to transfer bitcoins to one’s wallet. However, this ATM draws its bitcoin payment directly from DOSHOST.NET’s electronic wallet, giving customers far superior service and compatibility with state laws.

Individuals buying bitcoin from online exchanges generally find it takes up to four days to fund a purchase and the sites require that you upload your personal information to their website, which could make your information vulnerable. Further, exchanges only accept purchases paid by wire transfer, thus adding unnecessary cost to your purchase.

For More Information …

DOSHOST.NET is a technology consulting firm that offers Bitcoin mining and consulting among its many professional services. As scheduling North Dakota’s new bitcoin ATM at locations throughout the state begins, please check our website or social media pages for a current itinerary. You can reach us directly by email and phone as well. We look forward to serving you as the bitcoin economy continues to grow, and to give you a secure and easy way to become part of it.

WWW.DOSHOST.NET

SALES@DOSHOST.NET

PHONE: (701) 203-2002

https://www.facebook.com/DosHost/

https://google.com/+DoshostNet

https://twitter.com/DOSHostNet

DOSHOST.NET: Technology Consulting for Small and Large Organizations ~ We Deliver Service You Can Trust

What is Bitcoin?

Bitcoin is a highly innovative payment network that employs the use of a new kind of universal money. It makes mobile payments very easy by allowing the user to pay with just a simple two step scan and pay process. There is no need to sign up, swipe a card, type in a PIN number, or give a signature. All that is required to receive a Bitcoin payment is to show the Bitcoin QR code within the Bitcoin wallet app, then allow the other user to scan your mobile device. The two phones can also be touched together to complete the transaction though the use of something called NFC radio technology.

Bitcoin wallets are available online via websites such as www.coinbase.com and www.blockchain.info. Bitcoin wallets can be created on your personal computer with several different software packages. Bitcoin wallets can also be stored within “paper wallets”; these paper wallets consist of a wallet ID as well as a Key to enable spending of Bitcoins from the paper wallet.

Bitcoin Features

Safe and Secure. Bitcoin offers unparalleled control and security over money. All Bitcoin transactions are secured using the best in military grade cryptography. No other user or entity will be able to charge a Bitcoin user for any amount or make a payment on another user’s behalf without going through the payment initiation process described above. As long as required steps are taken to protect your wallet, Bitcoin allows for complete control over the funds as well as a strong level of protection against most types of user fraud.

  1. Bitcoin can work everywhere, at any time. Just as with email, matching service providers or software applications is not required to correspond with other users, Bitcoin can work with any user currency. This allows friends, family, and customers to stick with their preferred method of payment and currency, as they are all compatible with Bitcoin. The same open technology is employed, and the Bitcoin network never takes a break; it is open 24 hours a day, seven days a week, 365 days a year. Unlike banks, Bitcoin is open and available for use on every holiday.

Rapid international payments. International users love Bitcoin for its convenience and rapid service. For example, Bitcoins can be transferred from the country of Africa over to Canada in about 10 minutes. This is possible because there isn’t a banking system or infrastructure to slow down the process. Users also won’t receive outrageous fees or have to worry about the transfer being frozen. Users are able to pay their neighbors in the same manner as a member of their family in another country can be paid. Bitcoin makes it all possible with no hassle or long wait times.

Low or no fees. Bitcoin allows for the sending and receiving of payments at zero cost or very low cost. With the exception of some special cases, such as very small payments, there is no enforced fee to use Bitcoin as a sender or a receiver. However, it is recommended that users pay a higher voluntary fee to remunerate the people who operate the Bitcoin network and to ensure faster confirmation of Bitcoin transactions.

Your identity is safe and protected. When you use Bitcoin, there’s no credit card number to deal with that a malicious hacker can intercept, collect and use to try and impersonate an unsuspecting user. As a matter of fact, it’s even possible to send Bitcoin payments without revealing one’s identity at all, similar to using cash to pay for goods and services. Users should, however, take note that certain steps and efforts are required to fully and comprehensively protect privacy.

Privacy Considerations and Traceability

Bitcoin is sometimes perceived as and known for being an anonymous payment network. In reality, Bitcoin is actually one of the most transparent payment networks around. That said, Bitcoin provides security and privacy for users when implemented correctly. Users should keep in mind that it is their responsibility to use safe practices so that privacy can be assured and maintained.

Bitcoin offers unprecedented transparency for users that put a premium on this feature. All of your Bitcoin transactions will be traceable, public, and permanently stored within the Bitcoin network database. Because of this, if privacy is desired, each Bitcoin address should only be used once. Users’ Bitcoin addresses are the only piece of information needed to define where Bitcoins are allocated as well as where they have been sent. These Bitcoin addresses are created privately within each user’s wallet. Once these addresses are used, they are connected with the history of all transactions that have been associated with them. Anyone can potentially see the balance and all of the transactions of any address. Since users must typically reveal their identity to receive goods and services, Bitcoin addresses are by nature not fully anonymous. Again, for these and other security reasons, Bitcoin addresses should be used only once. Users should also take care not to disclose their Bitcoin addresses in other venues.

Unless the user is fine with receiving public payments or donations with full transparency, using Bitcoin addresses in any public space via a website or social network could jeopardize privacy. If public spaces are used, users should remember that if funds are moved with one address to another user addresses, this history will be traceable. If privacy is paramount, users might also want to take care not to publish information about purchases and transactions that could allow another person to identify any of the Bitcoin addresses.

IP addresses may be of concern to some users; because Bitcoin is a peer-to-peer network, transactions’ relays and IP addresses can be logged. Users might want to consider hiding their IP addresses with a tool like Tor when using Bitcoin so that their IP addresses won’t be logged.

Users should also be aware that math-based digital currency is a considered a technology that has the potential to vastly alter banking and commerce in a way that is similar to how the Internet has altered communications. Virtual Currency is treated as property for U.S. Federal Tax Purposes, and general rules for property transactions can apply to Bitcoin users at tax time.

North Dakota hosts many international tourists, seasonal agriculture workers, oil workers, and international university students. These international visitors should have the ability to spend Bitcoin in North Dakota or convert their Bitcoin to USD. Bitcoin is coming to North Dakota and state regulators, city government, local merchants, and consumers can be excited about the many opportunities that come with it.

DosHost.Net would like to organize a new meetup for Eastern North Dakota Bitcoin Users. Check out the meetup page and consider joining. This group will do its best to help beginner bitcoiners, bitcoiners looking to send bitcoins to family in other parts of the world, bitcoin merchants, bitcoin miners, and bitcoin commodity traders

http://www.meetup.com/Grand-Forks-Bitcoin-Users/events/181052222/

Meetup

Meetup

Grand Forks Bitcoin Users Meetup Link