Blockchain: What is it and how can it benefit you?

Crypto-currencies are gaining major ground and mainstream interest in the last few years.  Bitcoin is familiar to most people, it’s checkered past with incidents on the deep web like Silk Road, regulatory problems and corruption form NYC state officials, a mysterious headman that little is known about, and the biggest question on anyone’s mind when it comes to money is, “can I trust this”, the answer is yes you can.

The beauty of the blockchain is that it is decentralized, there is no one central repository or point of failure; the system can neither be contained or privatized into sectors, as many financial institutions are currently attempting, and here it is, the bank will just be another bitcoin consumer, equal to you, me and everyone else.

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Traditionally when money is exchanged, lets say an immigrant worker tries to wire money home, currently this is handled by a trusted third party, a bank, Western Union, PayPal, all of whom steal you blind with massive fees to simply keep track of a ledger that says one party no longer has the funds and the other party now has the transferred amount and/or services.  With the blockchain, there is no middleman, the ledger is essentially maintained across the globe on millions or more ‘nodes’, these all talk to each other and update eachother as transactions happen; maintaining one irreversible global, anonymous ledger, based on computers trusting eachother on established protocols. It is also completely  transparent, everyone can see the ledger, but everyone’s identity is anonymous. Why is this distributed nature so important? It cannot be taken down, think of it like torrents for money but transferring, not making copies.

Consider what money really is; just a record of  who owes what to who and accounting for it.  Now we all know the banks made a spectacular mess of the entire global economy, but what if there was an alternative? What if this can be done by a trusted network of computers replacing the role of corruptible middle-men stealing more than a slice.

The fact that the blockchain is trust among people directly, and that the financial structure of the network can’t be influenced by deep pockets or manipulated with traditional banking deviousness and it is really pissing off the banking industry.  All their quick buck screw the public and crash the world bankers who brought us quantitative easing, sub-prime mortgages, debt swaps, CDO’s, this cannot be done on the blockchain value system, and it is doubtful bankers will ever find a way of ever corrupting the blockchain; remember technology will always outpace regulation, law and control, but the wheels of law while moving slow, eventually come down with a mighty hammer. This is normal for any new tech, the government will want in, but until bitcoin becomes a legal currency, there really is not a lot they can do once your identity is concealed and you are careful where and how you transact. Crypto-currency is taxable in many countries so seek advice from a local accountant if you are going to trade on the blockchain or invest in it, if you are unsure yourself of any legal implications.

Of course the media are highlighting the phenomenal growth in the last year in bitcoin value, and there is still time to get in on it, but like any investment it is subject to risk and market fluctuation. The chart below shows in one year it has mushroomed from $750 up to over $11,000.

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Realtime bitcoin value: http://www.xe.com/currencycharts/?from=XBT&to=USD&view=1Y

The bigger benefits of the blockchain lies within using it to transact in; paying for and getting paid with bitcoin and crypto-currencies, everything happens outside the traditional walls of banks and state, the benefits of doing business this way is much more profitable with very little regulation as of yet. The eco-system that blockchain provides is far greater than the currencies that sit on top of it.  Their are rich APIs available to build all kind of value transfers on top of the blockchain, you will start to see ‘blockchain apps’ in the next year or two starting to appear.  Think of traditional transfer of knowledge or assets such as a deed to a house, much of this is now already possible on the blockchain and more and more applications will be added.

Everyone worries about the bubble bursting, the blockchain is smart enough to have learned form the mistakes of historical financial structures and have an auto-correcting market valuation, crazy right? Yes, crazy but true…

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It is worth noting the scale of the blockchain network, it currently consumes 1.4% of global energy usage, more than some small nations, and the amount of power required to mine a single bitcoin on the network would run in the region of $3-5000 depending on where you live in the world, still profitable of course, but gives an idea of the amount of computing power going into running the network.

A final note of one weakness of the blockchain, an obstacle to it’s wider adoption in retail is limited by transaction time, the likes of Visa are setup to handle peak transactions of 25,000/s, bitcoin is more like 6/s, often taking up to 15 minutes for a transaction to be fully processed, this is a big issue, throwing more computing power at it would solve it but as you can see that is very expensive, but better hardware is being built all the time, as well as more efficient software running the network.

For those willing to believe, take a little chance, It is a a Brave New World.

We hope to be introducing blockchain payment via bitcoin in January 2018, our new payment system will allow for subscriptions to be paid  for in bitcoin currency and also your auto repair shop will be able to accept bitcoin from customers as a payment option, with an easy link or barcode on invoices to send payments directly to you! Sound good?

New: Sync your Bookings with Google Calendar

You can sync your Bookings management with your Google Calendar, when you create, edit or delete a booking in our auto repair invoice software it will automatically update your Google Calendar with the changes.

This requires that you have linked your Google Account to AutoRepairBill, which can be done by Sign in with Google when you login, or by linking your Google Account from the Settings screen.

We are looking into other features of Google APIs, some of our thoughts are:

  • Auto-complete for adding new clients, using Google Contacts API
  • Auto-backup/save/export all PDF invoices to Google Drive
  • Add reminders to Google Calendar

Let us know what you think in the comments!

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