Blockchain Tidal Wave
Try to mimic Bill Gates memo entitled The Internet Tidal Wave
By Othman Darwish
Today
The emergence of Ethereum platform and its smart contract features would create a new wave of innovations diffusion. Bitcoin, the first product of blockchain technology, aims to provide the people all over the world, the ability to transfer money through the internet. In peer-to-peer approach, with no need for the middleman (banks) between two parties. This is new and radical innovation, Bitcoin protocols and its transactions scripted (1) instructions set, designed intentionally to serve this solo purpose – Money Transfer, or in bitcoin terminology, transferring of the ownership of money as an asset. Technical challenges still exist in Bitcoin, the scalability of the network, the number of transactions that could be served is a significant challenge, mainly as the adaption of bitcoins as a payment method would increase. The Lighting Network (2) focusing on this problem, by developing an extended smart contract, scripted inside a blockchain network, which enables the creation of secure networks of participants, that are exchanging transactions in high volume and speed. Aside from technical issues of Bitcoin, the type of product and services, that build on the top of Bitcoin blockchain being explored by financial and non-financial use cases. Some companies realized that Bitcoin blockchain could be used for other purposes as currency or money transfer, they are trying to represent real-world asset (company shares, house, car, land ...etc.) by utilizing bitcoins themselves. The emergence of what so-called “colored coin” just designed to serve this purpose, Overstock.com –the online retailer planning for trading an exchange for digital coin (3), after it had approved by Security and Exchange Commission –SEC, this would allow the company to issue public securities using blockchain technology by utilizing OP_RETURN code instruction (4). The idea is straightforward and innovated, a well-defined description of the asset – let say company share is hashed and stored in the OP_RETURN of bitcoin transaction, this implied that the owner of that transaction is proofing the ownership of that asset, and thus has the right to move –trade that asset like any other bitcoin payment transfer, although this is innovated and open the door for new potential use cases beyond money transfer use case. We believe that needs for new blockchain platform, which enable consumers not only transferring money but in theory, any digital asset is crucial. Ethereum blockchain and its smart contract capability just designed to serve this purpose, if we consider Bitcoin as a product of blockchain V1, Ethereum smart contract is blockchain V2. Unlike Bitcoin limited instruction set, that was designed for payments exchanges, smart contract is autonomous runnable application code that executed inside blockchain itself, this is very crucial and founded for new paradigm innovation, traditionally we deliver software in three-tier, front-end tier that captures user inputs and interactions, business logic tier that executes business rules and validations, and database tier that records those operations, Decentralized Application –DApp are newly innovated website that uses Ethereum smart contract as business logic tier and blockchain as database ,Web3 aimed to be front-end platform for decentralized application, mist wallet and mist browser are an example, Web3.js provided by Ethereum is JavaScript library, that enables its clients to interact with blockchain and execute smart contract securely without relying on any web server, the private keys never exchange with any third party. Ethereum blockchain won’t be able to serve valuable use cases, and solve real-world problem until it has the ability to interact with the outside world, interaction with external entity, whether it is blockchain based or not is critical, the emergence of decentralized trusted agents or services or what is known as oracle service is vital, and open up for new opportunities, oraclize.It (5) doing an excellent job in this area.
Competitors
A smart contract is not smart on its own, the application code that forms it makes it smart and valuable. We need to make sure that our platform able provides our clients the ability to design and run their contracts smoothly and efficiently. The development of Wizard like GUI designer to build a smart contract is critical. Building end-to-end smart contract for our end user is our primary target. Different contracts template such as tokens creation, crowdfunding, multi-party escrow agreement, and sports petting is essential one should be provided. Our competitor Etherparty (6) provides to their clients the ability to design contracts and test them on Ethereum test network. We need to guarantee to our customers that our contracts templates are based on security stander such as ERC-20, that are reviewed by security and development experts, auditing our contracts code by any third party should be provided as well, crowdsourcing our smart contract is vital and will increase our clients trust, our contracts templates should be developed and inspected by open community. BlockCat (7) is another competitor that provide their clients –in addition to wizard-like smart contract simplified designer- the ability to combine multiple templates to build a business model, and IPFS (8) technology which acts as decentralized public data storage, to store static files such as HTML and JavaScript files, to expose contracts front-end interfaces for their clients. Agrello (9) goes beyond statics templating and UI Wizards, and uses AI to create artificial intelligent agent, that act as client counselor, the agent guides its clients when forming the agreement, notify them about their rights and duties, and even identified the contract obligations that could be automated and run on behalf of them.
The Future
Ethereum smart contracts and underlying blockchain technology is platform innovations. Its founded necessary infrastructure for newly innovated products and services, that cannot be done before, asset transfer, contracts enforceable agreement and escrow are few to name. More advance oracles services will evolve, the advent of oracles services would provide a guarantee for smart contracts and put much broader uses cases, products, and services in the future. Hardware oracles or oracles machines will allow smart contracts to access real physical world, to make decisions and execute rules. By providing decentralized secure oracle services and consensus algorithms, and not depending on any third-party service, this will trigger a new wave of products and applications, that may impact the entire society behavior and lifestyle. Blockchain technology is going to transform the way IoT is currently running, and make a vast impact of today industries. Current IoT ecosystem relies on centralized trusted communication model, and such solutions are expensive due high infrastructure cost and maintenance. Decentralizing IoT by building them on top of blockchain infrastructure would highly minimize this cost, technical challenges of using blockchain as IoT infrastructures such as scalability, IoT computing capability, and security/ privacy would be reduced gradually, IoT supplier would standardize their products to be “Blockchain Complaint.“The convergence between blockchain and artificial intelligence would reveal a new type of applications rarely thinkable before. The essence of AI is machine learning, and one of the primary requirement for machine learning is the data set (10), the more significant and accurate data set will produce more accurate and accountable results. Blockchain as globally open, tamper-resistance disturbed ledger, will act as a backbone for numerous AI agents, that not only help in predicting and decision making but also autonomously executing businesses
The emergence of Ethereum platform and its smart contract features would create a new wave of innovations diffusion. Bitcoin, the first product of blockchain technology, aims to provide the people all over the world, the ability to transfer money through the internet. In peer-to-peer approach, with no need for the middleman (banks) between two parties. This is new and radical innovation, Bitcoin protocols and its transactions scripted (1) instructions set, designed intentionally to serve this solo purpose – Money Transfer, or in bitcoin terminology, transferring of the ownership of money as an asset. Technical challenges still exist in Bitcoin, the scalability of the network, the number of transactions that could be served is a significant challenge, mainly as the adaption of bitcoins as a payment method would increase. The Lighting Network (2) focusing on this problem, by developing an extended smart contract, scripted inside a blockchain network, which enables the creation of secure networks of participants, that are exchanging transactions in high volume and speed. Aside from technical issues of Bitcoin, the type of product and services, that build on the top of Bitcoin blockchain being explored by financial and non-financial use cases. Some companies realized that Bitcoin blockchain could be used for other purposes as currency or money transfer, they are trying to represent real-world asset (company shares, house, car, land ...etc.) by utilizing bitcoins themselves. The emergence of what so-called “colored coin” just designed to serve this purpose, Overstock.com –the online retailer planning for trading an exchange for digital coin (3), after it had approved by Security and Exchange Commission –SEC, this would allow the company to issue public securities using blockchain technology by utilizing OP_RETURN code instruction (4). The idea is straightforward and innovated, a well-defined description of the asset – let say company share is hashed and stored in the OP_RETURN of bitcoin transaction, this implied that the owner of that transaction is proofing the ownership of that asset, and thus has the right to move –trade that asset like any other bitcoin payment transfer, although this is innovated and open the door for new potential use cases beyond money transfer use case. We believe that needs for new blockchain platform, which enable consumers not only transferring money but in theory, any digital asset is crucial. Ethereum blockchain and its smart contract capability just designed to serve this purpose, if we consider Bitcoin as a product of blockchain V1, Ethereum smart contract is blockchain V2. Unlike Bitcoin limited instruction set, that was designed for payments exchanges, smart contract is autonomous runnable application code that executed inside blockchain itself, this is very crucial and founded for new paradigm innovation, traditionally we deliver software in three-tier, front-end tier that captures user inputs and interactions, business logic tier that executes business rules and validations, and database tier that records those operations, Decentralized Application –DApp are newly innovated website that uses Ethereum smart contract as business logic tier and blockchain as database ,Web3 aimed to be front-end platform for decentralized application, mist wallet and mist browser are an example, Web3.js provided by Ethereum is JavaScript library, that enables its clients to interact with blockchain and execute smart contract securely without relying on any web server, the private keys never exchange with any third party. Ethereum blockchain won’t be able to serve valuable use cases, and solve real-world problem until it has the ability to interact with the outside world, interaction with external entity, whether it is blockchain based or not is critical, the emergence of decentralized trusted agents or services or what is known as oracle service is vital, and open up for new opportunities, oraclize.It (5) doing an excellent job in this area.
Competitors
A smart contract is not smart on its own, the application code that forms it makes it smart and valuable. We need to make sure that our platform able provides our clients the ability to design and run their contracts smoothly and efficiently. The development of Wizard like GUI designer to build a smart contract is critical. Building end-to-end smart contract for our end user is our primary target. Different contracts template such as tokens creation, crowdfunding, multi-party escrow agreement, and sports petting is essential one should be provided. Our competitor Etherparty (6) provides to their clients the ability to design contracts and test them on Ethereum test network. We need to guarantee to our customers that our contracts templates are based on security stander such as ERC-20, that are reviewed by security and development experts, auditing our contracts code by any third party should be provided as well, crowdsourcing our smart contract is vital and will increase our clients trust, our contracts templates should be developed and inspected by open community. BlockCat (7) is another competitor that provide their clients –in addition to wizard-like smart contract simplified designer- the ability to combine multiple templates to build a business model, and IPFS (8) technology which acts as decentralized public data storage, to store static files such as HTML and JavaScript files, to expose contracts front-end interfaces for their clients. Agrello (9) goes beyond statics templating and UI Wizards, and uses AI to create artificial intelligent agent, that act as client counselor, the agent guides its clients when forming the agreement, notify them about their rights and duties, and even identified the contract obligations that could be automated and run on behalf of them.
The Future
Ethereum smart contracts and underlying blockchain technology is platform innovations. Its founded necessary infrastructure for newly innovated products and services, that cannot be done before, asset transfer, contracts enforceable agreement and escrow are few to name. More advance oracles services will evolve, the advent of oracles services would provide a guarantee for smart contracts and put much broader uses cases, products, and services in the future. Hardware oracles or oracles machines will allow smart contracts to access real physical world, to make decisions and execute rules. By providing decentralized secure oracle services and consensus algorithms, and not depending on any third-party service, this will trigger a new wave of products and applications, that may impact the entire society behavior and lifestyle. Blockchain technology is going to transform the way IoT is currently running, and make a vast impact of today industries. Current IoT ecosystem relies on centralized trusted communication model, and such solutions are expensive due high infrastructure cost and maintenance. Decentralizing IoT by building them on top of blockchain infrastructure would highly minimize this cost, technical challenges of using blockchain as IoT infrastructures such as scalability, IoT computing capability, and security/ privacy would be reduced gradually, IoT supplier would standardize their products to be “Blockchain Complaint.“The convergence between blockchain and artificial intelligence would reveal a new type of applications rarely thinkable before. The essence of AI is machine learning, and one of the primary requirement for machine learning is the data set (10), the more significant and accurate data set will produce more accurate and accountable results. Blockchain as globally open, tamper-resistance disturbed ledger, will act as a backbone for numerous AI agents, that not only help in predicting and decision making but also autonomously executing businesses
References
1) https://en.bitcoin.it/wiki/Script, Bitcoin Scripts
2) https://lightning.network/, Lightning Network
3) https://www.coindesk.com/overstock-to-issue-digital-corporate-bond-on-bitcoin-blockchain/, CoinDisk ,Overstock to Issue "Digital
Corporate Bond" on Bitcoin Blockchain
4) https://en.bitcoin.it/wiki/OP_RETURN Bitcoin Wiki, OP_RETURN
applications
5) http://www.oraclize.it/ , Oralize web site
6) https://etherparty.io/ , EtherPary , smart contract creator web
site
7) https://blockcat.io/ ,
BlockCAT , smart contract designer web site
8) https://ipfs.io/ , inter planetary file system project,
distributed web.
9) https://www.agrello.org , Agrello web site, creating smart contract with your own AI counselor
10) https://www.patrickschwerdtfeger.com/sbi-business-speaker-blockchain-artificial-intelligence/ , Convergance of Blockchain and Artificial
Intelligence
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