Wednesday, August 23, 2017

FORGET OIL, RUSSIA GOES CRAZY FOR CRYPTOCURRENCIES

Standing in a warehouse in a Moscow suburb, Dmitry Marinichev tries to speak over the deafening hum of hundreds of computers stacked on shelves hard at work mining for crypto money.


"The form of currency we are used to is about to disappear," predicts the 42-year-old entrepreneur, who also works as President Vladimir Putin's adviser on internet matters.

Marinichev is one of Russia's leading crypto-businessmen at the helm of operations in this facility larger than a football pitch located in a former Soviet-era car factory, which collects virtual money on the accounts of its clients.

Individuals, or firms like Marinichev's, provide the computing power to run the so-called blockchain which records the world's virtual money transactions. In return for providing that service they receive virtual money, of which bitcoin is the most popular, as payment—a process bitcoiners call "mining".
Mining farms like this represent a growing craze in Russia for bitcoin and other virtual currencies not backed by governments or central banks that are increasingly used for goods and services on the internet.

The hunt for virtual currencies is accessible "to anyone who may be hardly familiar with computer science," Marinichev said. "It's no more complicated than buying a cellphone and connecting to a mobile network."

The practice has become so popular in Russia that computer stores in the country have run out of graphic and video cards developed for gamers but are used by bitcoin miners to boost the processing power of their home computers.

Marinichev this week unveiled a more sophisticated setup, inviting investors to pitch in $100 million to join a mining club and develop a Russian mining chip called Multiclet through his startup.

Benefit of long winters

"The explosion of virtual currency value has made mining profitable enough to make it a professional activity," said Sergei, a 29-year-old computer scientist who runs half a dozen graphics cards plugged into the electrical grid of the company where he works.

He launched his mining operation in March, when the value of bitcoin and its main competitor ethereum, created by Russian-Canadian Vitalik Buterin, reached record heights on the currency's exchange.

Since the beginning of 2017, bitcoin has quadrupled in value, surpassing $4,000 at the weekend, while ethereum experienced a rise of 4,500 percent to hit a record of $374 in June, later falling to $268 in August.

While the assembly of a mining operation is easy enough, it consumes a large amount of electricity, which can reach the equivalent of several households' needs.

"All my friends who were interested in Bitcoin or ethereum built their devices and plugged them into their corporate networks, and I did the same," Sergei said. "Others cut into the municipal electrical cables."

Russia has a competitive advantage as an environment for mining, as Marinichev points out in a brochure for prospective investors: electricity here costs just 1.3 US cents per kilowatt hour while long winters save money on cooling systems.

'Not an absolute evil'

Authorities in Russia were long suspicious of virtual money but have now come to recognise it as a force. A new bill is set to be debated this autumn which aims to regulate the possession and creation of crypto currency in the country.

The legal foundation for virtual money has so far been non-existent in Russia and it is associated with illicit activities like hacking and used to purchase drugs on the dark web.

"There is now an understanding at the highest level in the country that virtual currencies are not an absolute evil but a possible good, especially for the economy," said Marinichev.

Putin in early June even held a meeting at an economic forum with Buterin, the 23-year-old creator of ethereum, who lobbied the Russian president to expand the currency's use in Russia.

Last year, Russia's largest banks tested the platform for some of their transactions. The country's central bank even pondered development of a "national virtual currency".

Though at all-time-high in August at $116 billion, the global cryptocurrency market is still quite young, volatile and prone to speculation.

Bitcoin, for example, lost almost a third of its value between mid-June and mid-July, before gaining it back over the course of a week. Since then, it has been regularly breaking records.

"The rush to virtual money is not a fad or a fleeting phenomenon. The virtualisation of our lives is a market process that has gone on and will continue," Marinichev said.

In a sign of the times, several cafes and restaurants in Moscow this summer began to accept payments in virtual currencies.

Tuesday, August 22, 2017

BITCOIN CASH HASHRATE NEARS PARITY WITH BITCOIN AS DIFFICULTY ADJUSTMENT LOOMS

When bitcoin cash forked away from the main bitcoin blockchain, one of the most significant obstacles the new coin faced was attracting hashpower.
During bitcoin cash’s early days, the blockchain was plagued by high difficulty and slow block times. Bitcoin was still far more profitable to mine than bitcoin cash. BCH miners were essentially mining at a loss, either for ideological reasons or on speculation that the bitcoin cash price would rise enough for them to sell the coins at profit. Consequently, the bitcoin cash hashrate lagged far behind that of the main chain, averaging only about 5% of the two networks’ combined hashpower.
Bitcoin Cash Hashrate Approaches Parity with Bitcoin
However, BCH mining profitability ticked upward until it eventually reached parity with BTC. Soon after, a decrease in difficulty, coupled with a Korean-led price surge, made bitcoin cash mining 240% as profitable as bitcoin. That gap has closed due to a recent bitcoin cash price decline, but BCH retains a 68% edge on the original chain.


Bitcoin Cash Mining Profitability Chart from Coin Dance

Once bitcoin cash had surpassed the parity threshold, hashpower began to pour into the BCH network. On August 19, bitcoin cash had less than 4% of the combined hashpower. The next day, the bitcoin cash hashrate had climbed to 20%. By August 21, major mining pools such as AntPool had begun mining bitcoin cash, enabling its network to claim more than one-third of the total hashpower. Today, the bitcoin cash hashrate share increased to 43% and is just 7% away from reaching parity with bitcoin.


BTC/BCH Hashrate Distribution Chart from Fork.Lol

The introduction of new miners has provided bitcoin cash with a much more even block distribution. During its first two weeks, a mystery miner (or miners) found more than 90% of the blocks. Now that unknown miner(s) accounts for just 43% of the last 1,000 blocks.





Bitcoin Cash Block Distribution Chart from Coin Dance

Additionally, Huobi and OKCoin–two of China’s “Big Three” cryptocurrency exchanges–added BCC/CNY trading pairs today. The timing could just be a coincidence, but it is likely that the increase in hashpower helped convince them to add support for bitcoin cash.
This rapid shift in hashpower has caused the bitcoin mempool to swell to a near-record level of 96MB (May 2017 brought a mempool spike of nearly 120 MB).



Bitcoin Mempool | Chart from Blockchain.Info

BCH Mining Profitability Set to Crash
Unfortunately for bitcoin cash, this new status quo will not last. Due to the spike in hashpower, blocks are being found way too quickly. At the current pace, a block is being mined almost every minute. Most blocks are carrying very few transactions, and a significant number are smaller than 1KB.
As a result, the network is about to adjust the difficulty to make it harder to find BCH blocks–much harder. Following this difficulty adjustment, bitcoin cash mining is expected to become far less profitable. As Jimmy Song pointed out, this could cause a significant number of miners to switch back to bitcoin, at least until the bitcoin cash difficulty decreases again:

Anticipating that the bitcoin cash difficulty level will remain volatile for the near-future, several major mining pools have announced services that will allow members to automatically mine the most profitable chain.

Source: http://bit.ly/2wCrKmh

Monday, August 21, 2017

FORGET LAND AND INVEST IN CRYPTOCURRENCIES


Land in Kenya has been yielding abnormal returns over the past few years. But there is a new kid in the block with even higher returns: Digital currencies.

Barely a month ago, the value of the Bitcoin was $2,000. As I wrote this article last week, it was approaching $4,000. By now, it is perhaps a couple of points higher. This digital currency is the fastest growing asset of any kind in the world today.

A digital currency is in the category of what is popularly known as Internet money or electronic money. In most cases, the tech community refers to these currencies as cryptocurrencies or virtual currencies.

They are different from hard currency such as bank notes and coins, but they can be used like normal currency to buy goods and services. They operate more like mobile money and can be used just like the physical currency to settle any form of payments.

Digital currencies enable real-time transactions across borders.

Digital currencies can be bought from online brokers just like in the stock market.
The currency is not to be confused with other traded currencies or the activities in the money market.

Like other currencies such as the dollar or the euro, it is also a traded currency. When demand for the dollar rises, its value goes up. Similarly, when demand for cryptocurrency rises, its value increases.

The difference between hard currency and cryptocurrency is that the latter does not need a bank intermediary to transfer value. The money market too isn’t a place for virtual money, but with time it will happen as the market matures.

The market assets are short-term IOUs largely issued by governments, large corporations and financial institutions.
These short-term securities are in almost all cases very liquid and particularly safe. As a result, the returns are significantly lower than any other instruments of a similar kind.
In recent times, as more people have become familiar with virtual currencies, the demand has been phenomenal necessitating its value to rise. It is increasingly becoming the fastest way of settling debts across borders.

For example, if you buy goods from Singapore, you can buy the virtual currency online and settle the payment without having to visit any bank. There are several kinds of these currencies, but the most widely used are the Bitcoin and Ethereum. There are several others emerging.

The main concerns about virtual currency centre on their legality. While some countries have allowed these currencies to operate as a medium of exchange, others have either banned them or have no position about them.

In Kenya, for example, the central bank says that since they are not regulated, you can use them at your own discretion.
Although the adoption of these currencies was fast in China, the country’s central bank banned the handling of these instruments by financial institutions. Other countries like the Great Britain and the US have allowed their use and trade.

Some countries have concerns that these currencies may be used to promote online black markets. This, however, is an issue that can be resolved if financial regulators began paying more attention to this emerging medium of exchange.

Advances in technology will always disapprove prophets of doom. At the start of Internet, fear mongers heaped all manner of reasons as to why Internet was not good for humankind but today people ask how our lives will be without the Internet.

Like any financial instrument, virtual currencies also come with risks. While most are on the rise, lack of demand could equally make the currency’s value spiral downwards.

It is not a good investment for short-term investors like in money markets. You will need to hang in there and exit when terms are favourable.

In terms of security, they are largely safe and backed by a new tamperproof emerging technology referred to as Blockchain.

This new technology offers great hope not just in backing up virtual money but also in its application in land registries, music and many other assets.


Sourcek: http://bit.ly/2uYAPGF

ETHEREUM ANNOUNCES METROPOLIS HARD FORK COMING LATE SEPTEMBER

The Ethereum Developer team has just released word that the Metropolis hard fork is set to occur in late September of this year.



With all the hubbub about Bitcoin and Bitcoin Cash in the news, Ethereum has been overlooked by some.

However, the Ethereum Developer team has just released word that the Metropolis hard fork is set to occur in late September of this year.

Road map ahead

The hard fork has been widely anticipated after the Ethereum road map for 2017 was released earlier this year. The map indicated that the coming release would contain some major upgrades for the platform.



The announcement earlier in the year indicated a three to six-month window for release, and late September is right on the cusp of a full six months.

While the timing is later than many had hoped, the news is a welcome encouragement for those seeking Ethereum upgrades.

Anticipated upgrades

The new hard fork should enable some significant upgrades.

First, increasing anonymity will come with new ‘zk-SNARKs,’ or Zero-knowledge proofs. Users will be able to perform anonymous transactions at higher levels than in the past.

Second, programming and smart contracts will be made far easier with the new upgrade, relieving some of the pressure on current programmers. Gas will also be adjusted for bill settling.



Third, masking for security enthusiasts will allow users to determine the address for which they have a private key. This will increase security on the network, even against quantum computer hacking.
Finally, the upgrade includes a ‘Difficulty-Bomb’ intended to make mining exponentially more difficult.

The bomb is designed to be an intermediate step in the transition from proof-of-work (PoW) to proof-of-stake (PoS) on the network. This has often been referred to as the ‘Ethereum Ice Age.’ 

Price response?

It remains unclear whether the upgrade will cause prices to increase or decrease. As mining slows, the price may fall.

However, the upgrades should increase the amount of users on the system overall, causing the price to rise.

Regardless, Metropolis is the penultimate stop on the road map – Serenity, the next upgrade, should produce an increase in stability, causing greater investment and price support.


Source: http://bit.ly/2fYJVME

Sunday, August 20, 2017

IS ONECOIN A SCAM? IS IT LEGITIMATE?

The first question you ask your self whether some business is legit or scam is when it was established. If it was established few months ago the risk of being scam is very high. But then you can start educating your self directly with people involved with it. Get to know them in person, feel the energy, understand the vision. Scams usually collapse in a few months, maximum six months. People often tend to mistake good projects that failed because of bad decisions with scam.

So since today is two and a half years of Onecoin’s existence, seems like it is not a scam after all. It does bring a risk with it that is sure. But tell me one business that has no risk.


Onecoin is a Saturn shot project of making stable and centralized cryptocurrency that will be used by masses and especially on unbanked markets like some Asia, Africa, South America. This is its first problem. For now, all we know cryptocurrency can be only decentralized and it needs to be listed on a private website CryptoCurrency Market Capitalizations. So you will find many decentralized cryptocurrencies out there that will yell how Onecoin is not cryptocurrency cause it is centralized. I don’t think they get to decide that. People do. Governments do. Russia is finalizing a law that will only allow centralized cryptocurrencies that can track coin owners inside blockchain. Onecoin has all that already. Problem is that decentralized cryptocurrency open market is subjected to big speculators that have skills and means to inflate coin prices to make big profit thus making coin values volatile. I wrote my findings here How credible BITCOIN's "value" is Onecoin does not want to be just one more speculative cryptocurrency. They want to be central entity that will regulate value of its coin by not allowing large dumps and pumps by having their own exchange and impose limits. You can call it economically illogical all you want but they want to make stable coin that people will be able to use to buy services and goods. Onecoin already has more than 35000 merchants and people already can spend coins on DealShaker It started in Feb 2017 and of course haters will say website is bad because they saw bad deals. As if amazon and ebay worked perfectly in their beginnings. Hell, alibaba owner Jack Ma bought all deals from his website for the first 30 days. Onecoin is slandered for not being open, not able to sell and exchange. That is intentional. They want to make critical mass, make user base, merchants and usability, and then go out public 2nd qtr 2018 and it will have its own exchange xcoinx.com. Also the company will go IPO to be the first public cryptocurrency company listed on actual stock exchange. You will find bloggers and anonymous haters that will say they will fail and so on. It is just peoples opinions. Of course if someone presents you all this and you too think it can not succeed, naturally you will pass.



The second problem Onecoin has is at the same time its strongest link. It is distributed via Multi level marketing. MLM is in deed the best crowd sale business model but it carries many faults with it. First of all is antiMLM propaganda. Anonymous blogs that write all sorts of bad propaganda based mostly on opinions against all MLM companies and earning $$ from clicks and visits, cause they know that most people are attracted by negative content. But they don’t write only based on opinions, they also write based on events that are direct result of bad doings from the second problem of Onecoin: Bad distributors that work agains company’s rules. At Onecoin, network is called Onelife, and it has certain compliance guidelines how you should present Onecoin concept to people. Since Onecoin is still in its private infant stage, no one can buy Onecoin or sell it for FIAT currency. You need to provide a gas called One token and submit it to mining pool via onelife back office and you get Onecoins based on difficulty x tokens = 1 OC. Also you can not buy tokens cause it would be illegal. You actually get tokens for free as promotion to a product that Onelife actually sells. And this product is OneAcademy education packages, just see experts below to see who are some of lecturers. You will see haters discard those as a valid product but that is just their opinion. People will decide. Prices vary on education level and bring various number of splits to tokens and at the end number of coins. The more money you out into education, the more coins you get. The same as with open cryptocurrencies, the more money you put into hardware, the more coins you will have. Difference is that decentralized open cryptos are reserved mostly for IT experts who actually know how to setup mining rig and use software. Onecoin manages cloud farm for its mining and closed blockchain, they own all the nodes, all you need to do is pay for education pack, receive account at onelife.eu, wait for your splits (I will not go deep into all those, you can ask that person who introduced you info) and after you submit tokens to mining, you wait for your coins. Since Oct 01. new blockchain mine coins very fast. So anyone can mine Onecoin. That is why they already have almost 3.2 million users with more than 1 OC. Current price of OC is internal and is based on pure demand. The more tokens go in, the more value goes up. This price is demonized by open market enthusiasts, they say Onecoin invents its own price. That is a lie, they know nothing about closed system so that can only be their opinion. In fact, at Jan 2015 OC started from zero users and zero value, it made 0.5 eur in May 2015 with around the same number of users with more than 1 OC as bitcoin had after 7 years. And after that until now, value increased fast, every month with original blockchain, but after Oct 01 2016 when new blockchain launched, value is going up much slower cause way more coins are mined. So 100% money goes in to education, they provide free tokens, that mine onecoins. Haters say it is scam because coins are “sold” behind Education store front. Well it is legal, but the same can be told for Etherium that has a storefront of buying hardware in order to mine ETH. Indeed difference it that ETH can be converted to FIAT since it is public but when Etherum had its ICO (initial coin offering) you needed to buy Bitcoin in order to have Ethers… Those people use double standards. Seems like they argue because Onecoin is still private, they don’t understand it so they have bad opinion about it.



So to summarize, all around the google first page you will find bunch of peoples opinions that say onecoin is a scam. I read most of comments and most are people they spent a few hours into investigating the company that is MLM and it made over $10 billion in revenue for 2.5 years. Jesus.

I am following Onecoin for more than 1.5 years and I know all negative propaganda, I am objective, I am not Onelife distributor but I own many OC cause I believe the world needs stable centralized global cryptocurrency cause all those decentralized open cryptos are all about big people earn big money, small people lose their money and merchants will never accept them because of value volatility. I made a forum that is work in progress, but there are a lot of objective info there, also Onecoin opposition comes there to put their arguments but at the end whenever they get valid answers they turn to insults how we are brainwashed and it all boils down to their limited view, misunderstanding of Onecoin and personal opinion.


I have shown how ignorant proofs and claims of people who claim that Onecoin has no blockchain are here Debunk of onecoinscam.info


There was even debate Is OneCoin a CryptoCurrency



So to summarize, Onecoin is indeed something new, that’s why it is on deny phase currently by people from opposite side of the industry. There is a risk to it.

Onecoin’s top people are demonized as scammers just because they have failed projects before yet no one was in jail. I am not talking about Onelife independent marketing associates. They are independent sellers of education. They are the reason that we see all those investigations in Europe. Some of them were making promises and high returns. All that is explained on posts on forum I mentioned.

No investigation concluded that Onecoin or Onelife iteself is illegal.

So to answer your question, Onecoin is legal until someone from top goes to jail and we see any declaration that its business is illegal. So far, there are investigations that are opened since 2015 and they can not find anything illegal.

The tricky part of Onecoin is whether you are willing to get coins and do you believe in such centralized concept or not. Also question is if you want long term possible profit or you are into fast money cause Onecoin is sure not fast money, you are better with open market bubbles to make fast profit.

Sure there is possibility to earn big bucks in Onelife compensation plan but I don’t like Onelife so much cause they are Onecoins biggest enemy. But all will be fine in my opinion. If you have any more questions please ask me directly. I am here to help Onecoin, cause I see injustice all around the web, not sell anything.


Source: http://bit.ly/2vfcNm0

INTERVIEW WITH TOP EARNER LUCA MIATTON FROM ITALY

Luca Miatton is a full entrepreneur. He is a businessman who has been involved in various industries and sectors, has been in the world of sales, banking and even politics.

He is a member of the successful team founded by Top Earner Igor E. Alberts and Andreea Cimbala, Success 4 All, where he is dedicated almost entirely to the promotion to the merchants of the advantages of the DealShaker online platform.


Close before turning 50, this Italian businessman, decided that he still had to live another adventure and another opportunity to undertake.

“Due to my financial background, I have been skeptical for 6 months but in the mean time I studied the vision of the company and financial education that the company offers and the OneAcademy program.

I got impressive information about cryptocurrency, all information that, honestly, I didn’t know and that completed the last part of the puzzle in my head. ”

Although the OneCoin, OneLife and OneAcademy ecosystem seemed attractive, and he became IMA, in addition to managing his own businesses, it was the arrival of DealShaker that really motivated Luca to turn 200% to this project.

Now, in spite of being his first experience in the world of payments in crypto currency, and even of the e-commerce, Luca Miatton has become almost an ambassador of the platform, or at least one of its greater experts in Europe, thanks to the passion that this method has awakened in him and to the great potential that he has seen in DealShaker like impeller of merchants.

 “There are many advantages of publishing deals on the platform right now, and more to come in the future. No matter what you sell, you automatically gain visibility and a worldwide potential market of 3.5 million people, all members virally connected between each other, from more than 100 countries across the globe. Automatically, the sales are going to increase in a short period of time. ”
In fact, Luca Miatton owns two hotels and a restaurant in the city of Verona that have been highly benefited by DealShaker.

“Since I started to accept OneCoin as a payment system for my hotels and restaurant, in the last 5 months have been visiting countries on almost every continent on the globe”.

Tourists come knowing that In Italy they have a place where to pay with their OneCoins during their trip, increasing the bookings exponentially since being registered on the platform.”Dealshaker and OneCoin cryptocurrency have transformed my business from a national to an international one”.
Luca describes what is the reality that many people don’t see at first sight when we talk about increased sales or bookings. Not only its visits have increased and also its OneCoin portfolio, but the large turnout in your business leads to creating jobs. When a business goes well, it affects more people than the owner. This is how it has happened in his business that now has more employees to serve the clientele.

“I am very proud to be part of this great family and to contribute to the economy by creating jobs when many people need an occupation and a salary. I have this opportunity thanks to DealShaker, but also thanks to Ilenia Turelli, the leader and also the entrepreneur, Roberto Turrini, Silvio Martinelli, Tsoni Goranov and Ivan Tzvetkov, the four musketeers, Iulian Cimbala and, of course, the great mentors Igor E Alberts and Andreea Cimbala. All that we are achieving now is possible thanks to all these people and the whole team. ”

Luca’s vision of DealShaker is that of a tool that, although created to favor the usability of the cryptocurrency, becomes a great advantage for entrepreneurs and merchants.

“An entrepreneur has a lot more advantages than using other advertising platforms. If we compare Dealshaker with other successful companies, taking 50% of the commission on the total value of the transaction, in our case Dealshaker takes only 25%.”

But he recalls that the main mission of DealShaker is to change e-commerce in a deeper and longer term, creating a strong community of users and a currency of widespread use that doesn’t suffer from drastic differences in prices.

“Our visionary founder Dr. Ruja Ignatova said from the beginning that our cryptocurrency gains value by having a strong and big community but also by having strong usability. Usability is the key to reach the mass market being user friendly. Dealshaker assures us a long-term e-commerce business and a long-term cryptocurrency came to the market to stay for the next centuries. ”

Luca Miatton has seen hundreds of transactions of all kinds be made through, DealShaker and has played an active part in making that number of businesses already benefit? from the visibility that the platform gives them. He is especially proud of the business network that has been created in the city of Verona, where he himself has businesses attached to the system. He lists all types of services.
“Restaurants who accept 100% OneCoins, hotels, 1 shop selling sun- and reading glasses, car cling services, informatics courses, beauty and wellness services, shoe producers, tattoo studios, dental clinics and even funeral services for those who leave our world and need graves that can be paid 100% with OneCoins. ”

And many more across the country and the continent.

And more: Luca shares an address www.continuum.li/client-access-oc/dealshaker/dealshaker-map/) that lists business and categorizes them depending on the type of service and the percentage of OneCoins on payment. Europe is full of points.

“All the deals are located manually one by one by the owner of the website who is an IMA. There aren’t all the deals, he has just started, and this is just a beginning.”

However, the points come and go depending on the current offers.

“When a merchant places a really interesting deal, normally it is sold out very fast, especially on a platform like ours, which has 3 million active members. I could see the success and viral speed when some individual IMAs placed some apartments and houses available for sale, a couple of hundreds of new cars being placed by the OneMilionShop Merchant from Poland, electronics devices like iPhones and Travel deals, you could see these deals available only for a couple of minutes and then sold out. That was something impressive! ”

From very common products to luxury objects. He guarantees that in a matter of a couple of months, we will see luxury cars or jewelry on the platform, and that you’ll be able to buy a diamond ring to your wife through this system. And since he is not a man who just waits for those things to happen, he is already working, so that soon, DealShaker catalog will also have some whims for the most select tastes.

“If you have enough coins and you are fast enough to catch the deals, you will also benefit from the fulfillment of my dream.”


Source: http://bit.ly/2v3fMhP

Saturday, August 19, 2017

GOVERNEMENT AGENCIES ADOPTING BITCOIN AND BLOCKCHAIN TECHNOLOGY

Government agencies are looking further into adopting blockchain technology and bitcoin. They hope to commandeer these protocols in order to protect the military from mass-hacking campaigns, counterintelligence, and otherwise hostile attacks on their systems. The Pentagon has especially shown recent interest in using cryptographically-guarded blockchains to aid their operations. 

An August 17 Washington Times post elaborated on why governments need blockchain tech. It read, “Particularly alarming to U.S. defense analysts are Chinese intelligence collection operations aimed at commercial transactions, which have been highlighted as a growing threat to U.S. national security with the American military personnel, national security decision-makers and critical infrastructure entities increasingly targeted.”

Government Experimentation with Blockchains

The Pentagon and other agencies hope to use blockchain technology to take advantage of its tamper-resistant and immutable features. They believe these qualities can prevent malicious actors from either stealing their information, ransoming them, or eavesdropping. They also believe it will cut costs over the long term. This is why they have started to experiment with different implementations of various blockchain protocols.

The Washington Times article suggests the Pentagon and NATO have been working in secrecy to determine how best to utilize blockchain. NATO is particularly interested in making their intelligence processes more efficient, including financing and logistical work.

The Pentagon and U.S. NATO allies have been moving discreetly but aggressively in recent months to develop military-related apps exploiting the capabilities of blockchain. NATO is considering the technology to improve efficiencies across such traditional processes as logistics, procurement and finance.

DARPA and Blockchain Usage

The Defense Advanced Research Projects Agency (DARPA) also appears to have taken an interest in blockchain technology. They have currently been interested in developing a blockchain-based messaging application. The goal of this project is for them to have a secure platform to send encoded messages to operatives in combat situations. Furthermore, according to various sources, DARPA has interest in creating “unhackable” code for use with blockchain. This would allegedly help expose hackers who attack them.

A Foundation for Defense of Democracies memo expanded on DARPA’s goals, citing different attack vectors. It discusses a variety of ways that malicious actors could attack the United States. The memo also explored what would happen if the United States failed to act against these threats.

The cost of inaction is great. While we laud the recent focus on supply chain security problems of the defense industrial base (DIB), we endorse a broader notion of the range of U.S. interests threatened by this phenomenon…In a conflict scenario, the collapse of the domestic economy would not only degrade national morale but disrupt the primary source of material support for U.S. forces.

Government Believes Blockchain Can Guarantee More Security

With these threats on the radar, government believes their greatest ally might be blockchain technology. They think they can prevent their supply chains from being interrupted by placing their sensitive documentation on the blockchain. However, it is presently unclear how exactly various agencies will implement blockchain and bitcoin to further their agenda.