Blockchain 101: How This Emerging Technology Works

A Look at DCG & Bitfury's Incestuous Ties With the U.S. Government

Peter Todd Tweet in 2014:
[email protected] I gotta say, looks really bad legally how Austin Hill's been negotiating deals w/ pools/etc. to get control of hashing power.
Board of Digital Currency Group
Glenn Hutchins
Advisory Board
Larry Summers
DCG of course is an investor in both Blockstream and BTCC.
DCG's money comes from:
DCG also owns Coindesk.
BTCC and Bitfury are the only two large mining pools who are outspoken in their support of Bitcoin Core.
The Bitfury Group Leadership to Present at Clinton Global Initiative (
Full Video (Begins at 32:00)
“The Bitfury Group is proud to be the world’s leading full service Blockchain technology company, we are deeply honored to represent this innovation to an audience of extremely dedicated game-changers, and we look forward to highlighting our company’s groundbreaking ‘Blockchain for global good’ work at such an important event, said Smith. “From the White House to the Blockchain, I know this technology has the power to deliver inclusion and opportunity to millions, if not billions, of people around the world and I am so grateful to work for a company focused on such a principled vision.”
Bitfury Lightning Implementation
  • In partnership with a French firm called ACINQ (
  • ACINQ is a subsidiary of the larger ACINQ Financial Services
  • CoinTelegraph: Bitfury Lightning Network Successfully Tested With French Bitcoin Company
  • TEAM:
  • ACINQ’s US Headquarters is in Vienna, Virginia, a small town of only 16,000. Why would a global financial firm choose to locate here? -- Feeder community into Washington, D.C. Has an orange line metro stop. -- Located in Fairfax County, VA. -- The US Federal Government is the #2 largest employer -- Booz Allen Hamilton (NSA front company) is #6 largest employer -- In fact, most of the top employers in Fairfax County are either US Federal Gov’t or companies that provide services to Federal Government -- The county is home to the headquarters of intelligence agencies such as the Central Intelligence Agency, National Geospatial-Intelligence Agency, and National Reconnaissance Office, as well as the National Counterterrorism Center and Office of the Director of National Intelligence.
Chairman: Avinash Vashistha
CEO: Chaman Baid
CSO: Nandan Setlur
  • From 1986-1993 he worked for Information Management Consultants (imc) Ltd as a Technical Consultant with various federal government agencies. McLean, Virginia
  • 1993-2000 Technical Consultant for Freddie Mac, in McLean Virginia
  • From 2000-2007, President of InterPro Global in Maryland
  • From 2011-2012, Director of VibbleTV in Columbia, Maryland
  • From 2008-Present has been Executive Director at ACINQ and Managing Partner at Vine Management, both in Vienna, Virginia.
BitFury Enhances Its Advisory Board by Adding Former CFTC Chairman Dr. James Newsome and Renowned Global Thought Leader and President of the Institute for Liberty and Democracy Hernando de Soto (Businesswire)
Bitfury Board of Directors
Robert R Dykes
The other board members include two Bitfury founders, and an investor.
Bitfury Advisory Board
James Newsome
  • Ex-chairman of CFTC
  • Dr. Newsome was nominated by President Clinton and confirmed by the Senate to be at first a Commissioner and later a Chairman of CFTC. As Chairman, Newsome guided the regulation of the nation’s futures markets. Additionally, Newsome led the CFTC’s regulatory implementation of the Commodity Futures Modernization Act of 2000 (CFMA). He also served as one of four members of the President’s Working Group for Financial Markets, along with the Secretary of the Treasury and the Chairmen of the Federal Reserve and the SEC. In 2004, Newsome assumed the role of President and Chief Executive Officer of the New York Mercantile Exchange (NYMEX) where he managed daily operations of the largest physical derivatives exchange in the world. Dr. Newsome is presently a founding partner of Delta Strategy Group, a full-service government affairs firm based in Washington, DC.
Hernando de Soto
  • Hernando de Soto heads the Institute for Liberty and Democracy, named by The Economist one of the two most important think tanks in the world. In the last 30 years, he and his colleagues at the ILD have been involved in designing and implementing legal reform programs to empower the poor in Africa, Asia, Latin America, the Middle East, and former Soviet nations by granting them access to the same property and business rights that the majority of people in developed countries have through the institutions and tools needed to exercise those rights and freedoms. Mr. de Soto also co-chaired with former US Secretary of State Madeleine Albright the Commission on Legal Empowerment of the Poor, and currently serves as honorary co-chair on various boards and organizations, including the World Justice Project. He is the author of “The Other Path: the Economic Answer to Terrorism”, and his seminal work “The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else.”
  • Frequent attendee at Davos World Economic Forum
  • Frequent Speaker @ Clinton Global Initiative
  • Criticisms: -- In his 'Planet of Slums'[104] Mike Davis argues that de Soto, who Davis calls 'the global guru of neo-liberal populism', is essentially promoting what the statist left in South America and India has always promoted—individual land titling. Davis argues that titling is the incorporation into the formal economy of cities, which benefits more wealthy squatters but is disastrous for poorer squatters, and especially tenants who simply cannot afford incorporation into the fully commodified formal economy. -- An article by Madeleine Bunting for The Guardian (UK) claimed that de Soto's suggestions would in some circumstances cause more harm than benefit, and referred to The Mystery of Capital as "an elaborate smokescreen" used to obscure the issue of the power of the globalized elite. She cited de Soto's employment history as evidence of his bias in favor of the powerful.
Tomicah Tilleman
  • Dr. Tomicah Tillemann is Director of the Bretton Woods II initiative. The initiative brings together a variety of long-term investors, with the goal of committing 1% of their assets to social impact investment and using investments as leverage to encourage global good governance. Tillemann served at the U.S. State Department in 2010 as the Senior Advisor on Civil Society and Emerging Democracies to Secretary Hillary Clinton and Secretary John Kerry. Tillemann came to the State Department as a speechwriter to Secretary Clinton in March 2009. Earlier, he worked for the Senate Foreign Relations Committee, where he was the principal policy advisor on Europe and Eurasia to Committee Chairmen, Senators Joe Biden and John Kerry. He also facilitated the work of the Senate's Subcommittee on European Affairs, then chaired by Senator Barack Obama. Tillemann received his B.A. magna cum laude from Yale University. He holds a Ph.D. with distinction from the School for Advanced International Studies at Johns Hopkins University (SAIS) where he also served as a graduate level instructor in American foreign policy.
  • Secretary Clinton appointed Tomicah Tillemann, Ph.D. as the State Department’s Senior Advisor for Civil Society and Emerging Democracies in October 2010. He continues his service under Secretary Kerry.
  • Mr. Tillemann and his team operate like venture capitalists, identifying ideas that can strengthen new democracies and civil society, and then bring together the talent, technology and resources needed to translate promising concepts into successful diplomacy. He and his team have developed over 20 major initiatives on behalf of the President and Secretary of State.
  • Mr. Tillemann came to the State Department as a speechwriter to Secretary Clinton in March 2009 and collaborated with her on over 200 speeches. Earlier, he worked for the Senate Foreign Relations Committee, where he was the principal policy advisor on Europe and Eurasia to Committee Chairmen, Senators Joe Biden and John Kerry. He also facilitated the work of the Senate's Subcommittee on European Affairs, then chaired by Senator Barack Obama. Mr. Tillemann’s other professional experience includes work with the White House Office of Media Affairs and five U.S. Senate and Congressional campaigns. He was a reporter with Reuters New Media and hosted a commercial radio program in Denver, Colorado.
  • Director of “Bretton Woods II” initiative at New America Foundation Bretton Woods was an international summit that led to the creation of the IMF and the IBRD, one of five members of The World Bank
Jamie Smith
Jason Weinstein
Paul Brody (no longer appears on site, and his LinkedIn has no mention of Bitfury, but he is mentioned in a Press Release
  • Ernst & Young since 2015 as “Americas Strategy Leader”, “Global Innovation Leader”, and “Solution Leader”
  • Prior to E&Y, he was an executive at IBM since 2002
New America Foundation
Muskoka Group
[note: this is worthy of much more research]
  • Don Tapscott, co-author of the book “Blockchain Revolution,” hosted the meeting with his son and co-author Alex Tapscott at his family’s summer compound in Lake of Bays, Ontario. The group included some of blockchain’s biggest backers, including people with ties to IBM and JPMorgan. They considered ways to improve the governance and oversight of the technology behind the digital currency bitcoin as a way to fuel the industry’s growth. They included Jim Zemlin, executive director of the Linux Foundation; Brian Behlendorf, executive director of the Hyperledger Project, a blockchain supporter group that includes International Business Machines Corp., Airbus Group SE and JPMorgan Chase & Co.; and Ana Lopes, board member of the World Wide Web Foundation. Participants with blockchain industry ties include former deputy White House press secretary Jamie Smith, now chief global communications officer of BitFury Group Ltd., and Joseph Lubin, founder of startup Consensus Systems.
Blockchain Delegation Attends Democratic National Convention
Jamie Smith — The Bitfury Group & Blockchain Trust Accelerator Tomicah Tillemann— New America Foundation & Blockchain Trust Accelerator Alex Tapscott— co-author: Blockchain Revolution Brian Forde — MIT, Digital Currency Initiative
Brian Forde
  • Was the founding director of the MIT Digital Currency Initiative -Left his 4 year post as White House Senior Advisor for Mobile and Data Innovation to go directly to the MIT DCI
  • Brian Forde has spent more than a decade at the nexus of technology, entrepreneurship, and public policy. He is currently the Director of Digital Currency at the MIT Media Lab where he leads efforts to mainstream digital currencies like Bitcoin through research, and incubation of high-impact applications of the emerging technology. Most recently he was the Senior Advisor for Mobile and Data Innovation at the White House where he spearheaded efforts to leverage emerging technologies to address the President’s most critical national priorities. Prior to his work at the White House, Brian founded one of the largest phone companies in Nicaragua after serving as a business and technology volunteer in the Peace Corps. In recognition of his work, Brian was named a Young Global Leader by the World Economic Forum and one of the ten most influential people in bitcoin and blockchain.
Alex Tapscott
World Economic Forum
  • Strategic Partners:
  • Includes Accenture (See Avinash Vashistha), Allianz, Deloitte (Scaling Bitcoin platinum sponsor, Blockstream Partner), Citigroup, Bain & Company (parent of Bain Capital, DCG investor), Dalian Wanda Group (working on blockchain technology), Ernst & Young (see Paul Brody), HSBC (Li-Ka Shing, Blockstream investor, used to be Deputy Chairman of HSBC), IBM, KPMG International, Mastercard (DCG Investor), PwC (Blockstream partner, also sponsor of Scaling Bitcoin)
  • Future of Financial Services Report [PDF] The word “blockchain” is mentioned once in this document, on page 23 ( We have identified three major challenge areas related to innovation in financial services that will require multi-stakeholder collaboration to be addressed effectively. We are launching a project stream related to each area, with the goal of enabling tangible impact.... Decentralised systems, such as the blockchain protocol, threaten to disintermediate almost every process in financial services
  • The Steering Group who authored the report is a who’s who of the global financial elite. (Pages 4 & 5)
Bitfury Washington DC Office
Washington DC Office 600 Pennsylvania Avenue Suite 300 Washington, D.C. 20003
Bitfury Chosen for Ernst & Young Blockchain Startup Challenge
Deloitte Unveils Plan to Build Blockchain-Based Digital Bank
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5 Ways Blockchain Technology will Revolutionize Business

5 Ways Blockchain Technology will Revolutionize Business
The media headlines today, broadly revolve around the volatility and hype of cryptocurrencies lead by Bitcoin and Ethereum. On the other hand, the growing entente cordiale among business leaders and entrepreneurs is hint enough on the potential applications of Blockchain Technology. This nascent technology is evolving at a robust pace and there is clear evidence that the revolution has begun.But first, what is Blockchain Technology?A new type of internet backbone was created when Blockchain Technology was introduced to the world in the form of Bitcoin. The key essence of Blockchain is that it allows digital information to be distributed but not copied or altered.According to Don & Alex Tapscott, authors of Blockchain Revolution (2016),“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Blockchain Technology can be leveraged by businesses around the globe as the spectrum of opportunities emcompasses a great breadth. Here are 5 ways blockchain is disrupting the way we do business.
1. Digital Distinctiveness
Security is a top concern for Businesses of all size and is estimated to cost the industry roughly $18.5 Billion annually. This means that in every three dollar spent by a company, one dollar goes to ad fraud.Blockchain technology offers a solution to many digital identity challenges, where identity can be uniquely authenticated in an immutable and irrefutable manner thereby offering enhanced digital security. Current methods deploy problematic password-based systems of shared secrets exchanged and stored on insecure platforms. Blockchain-based authentication systems are based on irrefutable identity verification using digital signatures based on public key cryptography.
ShoCard is using the blockchain to validate an individual’s identity on their mobile device.”
2. Accounting
Accounting is a classic case-study for a business process that stands to benefit from blockchain adoption. The overwhelming complexities of codes and mathematical tools used by businesses increase the chance of human error to a great extent. Managing and communicating widespread business operations is an uphill task making audit work burdensome.
Blockchain technology may represent the next step for accounting: Instead of keeping separate records based on transaction receipts, companies can write their transactions directly into a joint register, creating an interlocking system of enduring accounting records. Since all entries are distributed and cryptographically sealed, falsifying or destroying them to conceal activity is practically impossible.Transparency and Immutability offered by blockchain adoption, reduces auditor’s workload thereby reducing the fraud to both system failures as well as human errors.Moreover, the large scams that break out due to negligent and corrupt auditors can be kept in check making the entire system trust-free.
Auditchain is the world’s first decentralized accounting, audit and real time reporting ecosystem for enterprise and token statistics.”
3. Supply-Chain Management
How can you assure that the branded product delivered to you by an online retailer is authentic and not counterfeited?How many times have you resent the delivered product raising a quality complain?
How many times have you been delivered a wrong product/good due to technical error?
In the current system, we do not have a choice but have to trust the conventional process being followed by businesses to deliver their goods.Blockchain comes with the characteristics of Traceability and transparency which are essential foundations of logistics.
With the merger of IOT and smart ledger, i.e. blockchain, one can verify the product and you are no longer required to trust the process.
Auxledger’s partnership with HPE aims to strengthen the widely used fault tolerance software - Mission Critical NonStop OS for Supply Chain Management.”
Provenance and SkuChain are two other examples of companies attempting resolve this issue.”
4. Human Resources
Human Resources (HR) is the custodian of the most valuable asset an organization possesses – its People. The core component of enterprise management, Employees are the storehouse of confidential information, knowledge and whereabouts of the enterprise. Hence, nothing can substitute the discretion and importance of HR in the continuous development of a firm. The authenticity of human resource information assumes paramount importance in ensuring cost and efficiency of human resource management.Combination of Blockchain technology and human discretion will establish an HR information management model that addresses the risk concerning the authenticity of human resource information.
5. Capital Access
For an economy to expand, it is necessary for the businesses to perform well. Capital savvy businesses, face many hurdles in procuring capital to run its day to day operations. The loan requested against the unpaid accounts receivable is subjected to heavy scrutiny and is prone to malpractices by corrupt officials resulting in fraud. This raises a question on the integrity and trust of the entire system.
Auxledger, over any other blockchain companies, gives the most profound solution to cater the challenges mentioned above. Adding onto the core characteristics of blockchain i.e; transparency and trust-free environment,Auxledger further adds significant features which include Interoperability between different Financial Institutions negating fraudulent activities and Enhanced Transaction Speed compared to existing technologies available.You can read the details here.
You can refer to the Executive white paper here.
Though it is early days for blockchain adoption, the elite have already spotted its potential use cases.
submitted by Nikcollet to Auxledger [link] [comments]

Part 1. What is a Blockchain?

I really like the following definition of a blockchain from Don & Alex Tapscott, authors of Blockchain Revolution (2016).
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
If the above definition is a bit much to digest all at once, my own basic definition of a blockchain is:
"A chronological public ledger of all past transactions that is VERY difficult to tamper with."
What these definitions mean, and what they foreshadow to us, are that the acts of: buying melons at a local farmers market, selling your home, registering your marriage, voting, borrowing money and paying it back, etc, are all possible TODAY by using (and trusting the tech behind) a blockchain.
How is this possible? It's actually a fairly simple explanation...When committing information into a blockchain, 7 Simple steps are taken. They are: 1. Request, 2. Broadcast, 3. Validate, 4. Verify, 5. Add to Block, 6. Add to Blockchain, 7. Completion
1. Request. Someone decides to Request a transaction. Matt wants to send Corrinne 1 Bitcoin.
2. Broadcast. The requested transaction is broadcast by Matt's computer, "HEY EVERYONE! Help me send 1 Bitcoin to Corrinne, here's the necessary info." Matt sends his Broadcast to everyone's computer connected to the blockchain through a Peer-to-Peer network. In this case Matt is only broadcasting to computers on the Bitcoin blockchain, also known as "Broadcasting to the Bitcoin Nodes."
3. Validate. The computer Matt is using to Broadcast puts information in his Request that is required by the Bitcoin Nodes before they can Validate his Request. Matt's computer has already done a Validation of his Request before Broadcasting, but the Bitcoin Nodes decide if he has followed the Rules for a Transaction when he self-validated. The Bitcoin Nodes re-check that Matt's Digital Signature is legitimate, and based off of his prior transactions, re-check that he has 1 Bitcoin to send. If Matt's Digital Signature is legitimate, and his Bitcoin address holds at least 1 Bitcoin, and Matt has followed the Rules for a Transaction, the Bitcoin Nodes consider his Request to be Valid.
  3a. Digital Signature definition: Providing the same function as signing a check, a Digital Signature mathematically proves the signee is a known sender (Authentication), that the sender cannot deny having sent the message (Non-Repudiation), and that the message was not altered in transit (Integrity). The Bitcoin blockchain uses your private key, your public key, and some fancy math to accomplish this.
  3b. Bitcoin Nodes definition: Computers running a program that connects them to the Bitcoin blockchain. In the use case of Validation they are only looking for transactions authorized by Matt's unique Digital Signature. However, these computers can also access the blockchain, create new Blocks, chain new Blocks onto the blockchain, and can look at any previous transactions. If Matt was bad and didn't have 1 Bitcoin at his address, the Bitcoin Nodes would know and his Request would stop here.
4. Verify. A transaction is Verified after a certain threshold of Bitcoin Nodes is reached who view Matt's Request as Valid. Verification can also be thought of as "The required amount of Trust between Matt and a single Bitcoin Node". As the number of Bitcoin Nodes viewing Matt's Request to be Valid increases, the amount of trust for Matt also increases. As time goes on and Matt's Request is repeatedly shown to be Valid, the chance that a single Bitcoin Node will believe Matt's Request is worth the effort (Time x Electricity) of being added into a new Block continues to go up until, finally, a single Bitcoin Node somewhere decides that Matt is trustworthy, and adds his Requested transaction into a new Block.
5. Add to a new Block. Once Matt's Request for a transaction is Verified, his Request is combined with other Verified transactions by a single Bitcoin Node to create a Block. A Block is merely a list of Verified transactions. Each Block holds a finite number of transactions before it is considered "full", after which a new Block must be created.
6. Add to the Blockchain. After a Block is filled to capacity, it must be added to the Blockchain. The chaining together of Blocks, in a way which is permanent and unalterable (under almost all conditions) is where Blockchain gets its name. This process involves SHA-256 hashing, Merkle trees, and other actions that require a lengthy explanation. The following is a simplified version of the process:  
Bitcoin Nodes race each other to solve a cryptographic puzzle that uses a LOT of computer resources (Time x Electricty). Whichever Bitcoin Node solves the puzzle first wins the right to chain the Block they created onto the existing Blockchain. Other Bitcoin Nodes will Verify (similar to Validating Matt's Request) that when the winning Bitcoin Node created this new Block, the Rules for creating a new Block were followed. If the Rules were followed, the new Block is mathematically chained onto the most recent Block to also meet this same criteria.
7. Transaction Complete! Matt's Request has now been irreversibly recorded into the Blockchain of Bitcoin. Corrinne's computer can now access the Blockchain and see this Completed transaction. In fact, every single person looking at the Bitcoin Blockchain can see that Matt now has 1 less Bitcoin and that Corrinne has 1 additional Bitcoin.
** This image has a visual explanation for the above outline. hold CTRL + scroll up on mouse wheel to zoom
A parting thought: I would be remiss to not mention that the process of Block creation and Block chaining is where this technology shows us how novel it truly is. Currently, the electricity consumed by those processes is more than N. Korea and quite a few small countries. Every day folks are finding newer, faster, and more efficient ways of bending this technology to benefit us all. It is an exciting time to be a part of what I believe will be another technological revolution. The daily lives of people the globe over will be significantly impacted by whatever we end up doing with blockchain technology.
Thanks for reading, and an extra thank you for seriously wanting to learn more about Blockchain Technology! Please comment below for further explanations, to get an answer on any questions you have, or just to correct me if you wanna be that person. Stay tuned for Parts 2-4.  
submitted by artlimber to denvercryptogroup [link] [comments]

Alex Tapscott: The Blockchain Revolution - Talks at GS ALEX & DON TAPSCOTT: Blockchain Revolution Blockchain is Eating Wall Street  Alex Tapscott  TEDxSanFrancisco Alex Tapscott: Can Africa Lead the Crypto Revolution, Corporate & Private Blockchains Blockchain Revolution (Alex Tapscott & Don Tapscott)  DLDnyc 16

'Alex Tapscott'(1986年生まれ)は、カナダ人のビジネス作家であり、諮問委員|アドバイザーです。彼の研究は、Blockchain(データベース)|ブロックチェーン技術とビットコインのような[cryptocurrencies]のアプリケーションを中心に展開しています。 Don Tapscott (01.06.1947) ist CEO des Blockchain Research Institute, einer der weltweit führenden Wirtschafts- und Wirtschaftsbehörden. Der Autor von 16 Büchern, darunter Wikinomics: Wie Massenkollaboration alles verändert, wurde in 25 Sprachen übersetzt. Tapscott is the author and co-author of sixteen books on the application of technology in business and society. His book "Wikinomics: How Mass Collaboration Changes Everything" (2006), co-authored with Anthony D. Williams, became an international bestseller, number one of the 2007 management book, and has been translated into 20 different languages. With his son, Alex Tapscott, he recently co-authored the book Blockhchain Revolution, How the Technology behind bitcoin is Changing Money, Business, and the [...] Jun 28, 2016 In an article special to the Globe and Mail, Alex Tapscott writes Bitcoin is the mother of all cryptocurrencies, and the most famous of them. Created by a person or people using the pseudonym Satoshi Nakamoto, it defined the algorithms that enable the transfer of...

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Alex Tapscott: The Blockchain Revolution - Talks at GS

Alex Tapscot speaks about Bitcoin and Blockchain at Crypto Summit Zurich. ... Alex Tapscott: "Blockchain Revolution" at Crypto Summit - The Global State of Crypto Crypto Investigator. Alex Tapscott is a Canadian business author and co-authored, with his father Don Tapscott, the 2016 book Blockchain Revolution: How the Technology Behind Bitcoin is Changing Money, Business, and ... Alex Tapscott is the author of a popular book - blockchain revolution and the co-founder of the Blockchain Research Institute in Toronto. He is a strong evangelist of blockchain technology and is ... According to Don Tapscott and his son Alex Tapscott, the blockchain holds the potencial to create a more fair and prosperous economy and world, it represents the second generation of the internet. We talked to Alex Tapscott, the co-founder of Blockchain Research Institute and co-author of the book "Blockchain Revolution," about private and enterprise blockchains and the development of ...

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