The 3rd generation of Blockchain?

Bitcoin has been breakthrough of the new “money” followed by etherium. So many other cryptocurrencies have risen to this date base on the “old” Blockchain technology. Among the new coins are the EOS and ADA that has some significant difference of outlook compare to the BTC and ETH.

Let’s first look into 1st (BTC) and 2nd (ETH) generation of Blockchain technology. Both 1st and 2nd generation of Blockchain offered a new way of ledger system. We have been taking advantage of it by some payment system and investment. We are able to send any lump sum of money to anyone as long as you know the address of the recipient. Yet, there have been quite of a drawback also. Some of the problems are speed and accuracy. First of all, sending BTC is not fast as we think or we hope to be. In order to process ledger and record ledger for all users, it takes very long time for the fund to be confirmed and transferred. Worst of all, without physically carrying a digital device that stores wallet addresses, there is no way for anyone to memorize complexed combination of letters and numbers, not to mention the capital letters.

ETH is not much better than BTC. ETH requires huge energy spending on Proof of Work (Pow) and the limit of transaction record capacity.

These problems resulted in BTC separating into bitcoin cash (BCH) and bitcoin gold (BTG). ETH separated to etherium classic (ETC).

The 3rd generation of Blockchain is utilized by ADA. ADA is aiming for somewhat of trans-blockchain communication facilitator. I still have a limited understanding of this concept at the moment but it seems to me that PoW is changing to Proof of Stake (PoS). To make simple, PoS requires much less electricity to mine.

All in all, as more BTC and ETH transactions occur, it takes longer time for a transaction to complete. As of now, Visa card takes shorter transaction time than BTC and ETH. However, EOS and ADA takes about 3 seconds per transaction. This is why the 3rd generation of Blockchain could be a new rise of the cryptocurrency.

Crypto arbitrage: Lucrative?!

There are many ways to “invest” in cryptocurrency. I am thinking that most of the people are in the same situation: buy and hold. The very traditional way of investing. Nothing different from trading stocks.

Another way is mining. It’s hard to say that mining is a way of investing, but you are spending money on the equipment and hoping to increase of value so that you can pay off the electricity bill and some income. I have done this, and after doing some math of gain/loss, you will have to have some mining-mega-factory to earn a good return. I had 6 mining rigs with 3 graphics card on each. I had about $300-$400/month electricity bill. Um… it wasn’t too bad but I do not recommend. It’s loud and generates too much heat. I would consider doing it again if I lived in Canada or Alaska. I would consider it. But, I will never move to either of the places. Ha!

Arbitrage. This is an interesting way of “investing” in cryptocurrency. I would have to say that it’s not really investing but more of buying and selling at two different places. I have mentioned this before: Kimp (Kimchi Premium). Yes, buy a cryptocurrency in the US and sell in Korea. Until all the China’s hiccups, the spread used to be 30~40%. It was very lucrative. After the China banning mining operations, the spread became just around 20%. Which is not bad. But not the best. However, with a few clicks in cryptocurrency exchanges, it’s an easy return-on-investment. 20% return? Why not!

Bitcoin quick flip chance #3

Wow!!! 9.14%!!!

I hope you have a connection to Korean banking system!! Or at least, any Asian banking system for that matter.

Eeeeeeeha!