Blockchain Technology Review & Setup
Since it was founded in 2011, Blockchain, which is based in Britain (with offices in Luxembourg and New York), has gained respect in the industry for adhering to the virtual currency’s original philosophy of anonymity and decentralization.
Bitcoin has been slow to gain more widespread use in the mainstream. In developed countries, virtual money is still largely the plaything of technology enthusiasts and speculators, though some retailers and stores have trumpeted their acceptance of Bitcoin. In emerging markets, where some see enormous potential for Bitcoin, the infrastructure to process transactions simply does not exist.
For Bitcoin to become more widely adopted, supporters say, the virtual currency must find a unique application that will take it beyond the realm of speculation. And for that to happen, companies must first build a robust platform, which is what Blockchain says it is trying to do.
In this Bloomberg Interview (below), Blockchain president Peter Smith discusses the company’s business model and the security concerns surrounding Bitcoin with Trish Regan on “Street Smart.” (Source: Bloomberg)
Bring on Bitcoin: Digital Currency Vs Paper Money
Click on the image below to watch the Video
How Blockchain Works
Blockchain Technology is a PROTOCOL. Here is
Be Your Own Bank
When a User sets up a Blockchain-Bitcoin Wallet, the User is not just setting up an ‘Account.’ The User is actually setting up His or Her own “Bank.”
Why is that?
Because, with a ‘Bitcoin Blockchain’ setup, the User can do only one of two things:
Either Receive or Send Bitcoin. As shown in the screenshot below, the Blockchain/Bitcoin Wallet serves Two Functions and two functions only: Send Bitcoin (In Red) and Receive Bitcoin (In Green).
- In order to ‘Receive’ Bitcoin into your Bank, you must send to the ‘Sender’ your ‘Receive Code’; and
- In order to ‘Send’ Bitcoin from your Bank, you must have the ‘Receive Code’ of the person that you are sending Bitcoin to.
The ‘Bitcoin Transaction’ is a purely ‘Peer to Peer’ (Bank to Bank) transaction that does not require any ‘Third Party’ intermediaries in order to complete. The cost of this type of transaction is ‘pennies’ as opposed to ‘dollars.’ More on this later.
Your Account Set-Up
Setting up a Blockchain-Bitcoin Wallet is actually quite easy. But before doing so, there are some things to keep in mind. Most of us do not like to ‘Read the Fineprint‘ when we do or get involved in any opportunity. We are always so eager to get started that we pretend that we have read ‘The Terms & Conditions of Use of a Service or Product.’ Then, if ‘things go wrong,’ we tend to start pointing fingers. Outlined below are some ‘Highlights’ of the things that we all need to understand as we are getting started with Blockchain.
The complete Terms and Conditions of The Blockchain Environment are available here.
Watch this Video First:
Use Of Services (Blockchain)
By using the services of Blockchain, User accepts and acknowledges that there are risks associated with utilizing an Internet Based Bitcoin wallet service including, but not limited to:
- the risk of failure of hardware, software and Internet connections;
- the risk of malicious software introduction, and
- the risk that third parties may obtain unauthorized access to information stored within User Wallet, including, but not limited to User Wallet Address and Private Key.
- User accepts and acknowledges that Blockchain will not be responsible for any communication failures, disruptions, errors, distortions or delays that the User may experience when using the Services, however caused.
Blockchain will not be responsible or liable for any loss and take no responsibility for and will not be liable for any use of their Services, including but not limited to any losses, damages or claims arising from:
- (a) User error such as forgotten passwords, incorrectly constructed transactions, or mistyped Bitcoin addresses;
- (b) Server failure or data loss;
- (c) Corrupted Wallet files;
- (d) Unauthorized access to applications; and
- (e) Any unauthorized third party activities, including without limitation the use of viruses, phishing, bruteforcing or other means of attack against the Website or Services.
GO HERE to https://blockchain.info
And a page similar to the below will appear:
Click on “Wallet” (above red circle) and the below page will appear. Click on “create your Wallet.
And the following page will appear:
Before you do anything here, I want you to think about a few things. Blockchain is asking for your Email first (which has to be valid) and then to create and verify a password. Your Password has to be ‘Strong.’
To get an understanding of what I mean, a “Strong Password” is something like this:
Are you going to be able to remember this? Not likely. Is anyone else? Not likely. Write it down, Paste it onto a ‘word document,’ back it up onto a USB stick. Please.
When a User creates a Wallet, the User is strongly advised to take the following precautions, as failure to do so may result in loss of access to, and/or control over, User Wallet:
- (a) Create a strong password that User does not use for any other website or online service;
- (b) Provide accurate and truthful information;
- (c) Maintain and promptly update User Wallet information;
- (d) maintain the security of User Wallet by protecting User Wallet password and access to User computer and User Wallet;
- (e) Promptly notify Blockchain if User discovers or otherwise suspects any security breaches related to User Wallet; and
- (f) Use the backup functionality provided by the Wallet and safeguard User backup files as User would safeguard their own most important personal information.
When a User creates a Wallet, Blockchain will assign the User an identifier that the User must retain to access the User Wallet. User hereby accepts and acknowledges that the User takes responsibility for all activities that occur under the User Wallet and accepts all risks of any authorized or unauthorized access to User Wallet, to the maximum extent permitted by law.
If you are confortable with the creation of a ‘Strong Password’ and using a valid email, then let’s proceed.
Create Your Wallet.
1. Enter a valid email.
Creating a new e-mail (G-mail is very popular) solely for the use of Blockchain/Bitcoin is not a bad idea. This new email can then be tied into any other activities that involve Blockchain/Bitcoin ( D9-Club, QuadrigaCx, Xapo, etc…). Everything will be in one place and not intertwined with your Personal/Business emails.
2. Create a Password (see security precautions above).
Write it down in a book. Back it up on a USB. Do not lose or give this password to anyone. It is 1 of the 2 keys to the front door of YOUR BANK. The other is your BITCOIN WALLET ADDRESS which will be sent to you via an email that used to create the account.
BLOCKCHAIN WILL NOT SEND YOU THE PASSWORD THAT YOU CREATED BECAUSE THEY DO NOT KNOW WHAT IT IS. THEY WILL ONLY SEND YOU YOUR BLOCKCHAIN WALLET ADDRESS.
3. Confirm your password.
4. Check ‘I have read and agree to the Terms of Service.’
Before Hitting ‘Continue,’ Read the Below:
NO PASSWORD RETRIEVAL available from BLOCKCHAIN.
Blockchain does not receive or store User Wallet password, nor the unencrypted keys and addresses. Therefore, Blockchain cannot assist User with Wallet password retrieval. Blockchain Services provide User with tools to help remember or recover User password, including by allowing User to set password hints, but the Services cannot generate a new password for User Wallet.
User is solely responsible for remembering User Wallet password. If User has not safely stored a backup of any Wallet Addresses and Private Key pairs maintained in User Wallet, User accepts and acknowledges that any bitcoins you have associated with such Wallet Addresses will become inaccessible if User does not have their User Wallet password.
5. Click on ‘Continue’ and the following will appear:
6. Click on ‘Get Started’
and you should see the following:
You have successfully created your Own Bank.
Please familiarize yourself with your New Bank. Setting up your security center is your next step. If you have any challenges with the Security Center, E-mail me with your contact number and best time to call.
Review the video again below.
Was this post helpful?
Please leave your comments and thoughts below.