Decentralized Search Engines to Rival Google Based on Blockchain from Bitclave

I haven’t covered it in my blog here but many know the blockchain technology made popular by Bitcoin has other possibilities such as sharing data, files etc and one of the latest manifestations is the “Bitclave” project. The website doesn’t detail some of these things but here is what I gather and I apologize if it’s not 100%, but here is what I break it down as:

#1) Bitclave is a decentralized search engine based on blockchain technology.
#2) Bitclave has CAT which is it’s own cryptocurrency based off the same blockchain meant to be used as currency.
#3) Bitclave is unique in that unlike the current big search engines, they will not be freely selling your information to benefit unknown third parties.
#4) Bitclave is not only a decentralized search engine and currency but it also rewards you for engaging in particular offers if you want to buy a car or house, for engaging with particular companies and offers (even if you don’t buy) you are rewarded with some CAT currency.
#5) Your information is under your control and completely private so you can choose when and how to sell it for big money potentially to third parties.

I’m going to go into some of the pros and cons that I see.
Pros.
First and foremost this is an exciting project on its own due to the decentralized aspect of the search engine. It takes it one step further by giving the user control over their private search/marketing data and even lets them directly and profit in ways that are under their control.

It will also revolutionize business potentially if things are done this way under a mutual benefit between business and user. In fact if executed properly it could end or significantly change the internet business and search model as it exists now with the big engines and social sites.

Cons

However, the Bitclave team would still largely retain certain controls just as developers of any blockchain do which makes some aspects only as trustworthy as the team is capable and trustworthy for.

It is theoretically possible that the business model above could turn biased in a somewhat similar way that the mega search engines have done things, where the rules are constantly changing for the benefit of a few. However, this is not a likely thing in the near future since Bitclave needs to prove itself and gain trust to both users and business.

Another big concern, which is still a concern for the mega engines is how would spam, hateful, defamatory and other harmful material be handled? It is great to be free and decentralized but there needs to be some legal or other mechanism to prevent abuse of such a powerful search engine. It’s definitely worth checking out to see how things play out.

Conclusion
I am very excited about this project, it is more commercialized than I expected and could not be considered entirely open source or community based but I’m OK with it as long as it is executed as envisioned it will have a massive and positive impact on the internet which benefits the majority.

Good luck to the Bitclave team they could be making serious history in both blockchain, search and online commerce!

Bitcoin’s Hard Fork of BCH Bitcoin Cash a milestone for cryptocurrency

The hard fork occurred on August 1st, 2017 with some nodes of the Bitcoin network implementing the “Segwit update”.  Although a lot of potential chaos could have happened, many in the industry called it correct that the most probable scenario is that the split would occur with the creation of BCH and Bitcoin users would not lose any coins and would be rewarded with an equal amount of BCH.  However, most exchanges and users were advised to backup their wallets and not do any transactions in the meantime.

Beyond this a lot of questions and issues need to be sorted out in the cryptocurrency world for things to stabilize and be universally accepted by businesses and individuals.  The key issues in my mind are “volatility”, “stability”, “security” and “regulation”. Really a serious issue with either of my three cores issues puts people and businesses at big risk although new updates and coins keep coming out with some promising the solution to these various issues.

Volatility

This is in reference to the extremely unpredictable nature of many currencies and Bitcoin is a core example with rapid swings.  Now people have often been warned that “don’t store your coins for the long-term” and this comes from the Bitcoin team itself as no one can be certain of the future of any coin at this moment.

Some have lamented that cash is the same, this is true but with the caveat that cash is backed by a government and central bank (all of who which do not really like cryptocurrency unless it is managed or under their control-more on regulations later).  Cash of course has had its issues whether run on banks, robberies, theft, fraud and other misuses of currency however cash is what most of us know and there is some safety and security in the “right cash” and at least often some predictability.

Take for example a record high of Bitcoin at the time in 2013 of approximately $1300 USD but sometime in 2015 trading was just at $267 USD.  The point here is that at this time cryptocurrency can be very volatile and unpredictable.  It can create chaos in everyday life for both business and individuals.  A risk that many businesses echo is the above scenario what if you accept payment based on USD in a cryptocurrency and the value plummets by 80% or some other high number suddenly?  It creates huge issues to say the least and time should address them but until there are more coins that have some consistency in their valuation without rapid descents there will be some reluctance.

Stability

There have been many instances on both the networks and exchanges for Bitcoin and Etherum where there are a ton of unconfirmed transactions.   I still have trouble understanding this but there are various numbers of “confirmations” before once can be comfortable they really have the currency that has been sent.  What if the network stops working or slows down creating massive fraud or inability to process transactions?

Fortunately there are new coins coming out which are instant that solve this issue but still there are many in the wild, common and highly valued that do not have these features.

There is also of course the concern that massive DDOS attacks could take out the network of a cryptocurrency or effectively shutting it down.

Security

The biggest threat is that there is the assumption that blockchain is secure and irreversible and it is impossible to play around in ways you shouldn’t.  However, this also relies on someone not finding a weakness or exploit against the blockchain, and what is more probable going forward is that an organization with massive computing power ultimately finds this and exploits this in various ways.

There are also other considerations such as people losing their coins to viruses or hackers, this has even happened to exchanges such as Coinbase executives.  One thing for sure is that it is not wise to leave your coins in an exchange if not for the risk that in the recent Bitcoin Fork the exchange refuses to give you the split/new currency.

Regulation

This is the biggest uncharted territory but governments and large financial institutions have made their position clear and my interpretation is that “we love blockchain” but “we hate that it is not under our control yet”.  This will have significant repercussions worldwide on how individuals and businesses deal with cryptocurrency.  Significant regulation and the introduction of state-run/central cryptocurrencies could potentially wipe out or make worthless some coins overnight. On another note it appears to be increasingly difficult to buy or sell out of the cryptocurrency markets with banks making it increasingly difficult for the coin exchanges to operate.

Conclusion

Bitcoin and other cryptocurrencies have made it far beyond the naysayers and through many difficult and unpredictable times.  Ultimately I believe cryptocurrency will continue to evolve and improve but as with any tool there are always going to be some pitfalls and bottlenecks.