Blockchain and Drones

Blockchain and Drones

After spending some time blogging about my findings when starting a drone business I realised I also needed a way to supplement this business as equipment can be costly as usual I searched the web and came across cryptocurrency. So again I searched the web to learn some more about blockchain and thought it was a good idea like many others out there. I can now see more and more people investing in this for so many different needs its brilliant. The IoT (internet of things) being a major part of the whole system. I have also travelled full circle as so far I can find a few companies using the blockchain to service the growing drone industry. Distributed sky based on the Ethererum blockchain wants to be able to create a global air traffic control. MOTA is another company who bought the rights to Lilly drone (Lilly drone started life as a crowdfunding project that raised over 30 million dollars that promised investors a drone, they basically closed their doors when they could not produce.) MOTA have an interest in the technology as they quite rightly think there is a huge amount of drones flying in the air at one time and that no centralised place should exist. If there is ever a crash then the data should be visible to anyone.

Aero Token is a start-up ICO ( an ICO is something I discuss further down the page) who believe there should be a system in place to allow drone users to request permissions to fly legally at lower altitudes over private land therefore the landowner being able to set up fees for the privilege. Being a drone user this could be costly but could also be very beneficial if an accident was to occur the landowner has no way of denying the flight should never have taken place.

Vodaphone is another company invested in the drone game and have developed new technology which uses IoT to monitor and control drones with the aim to create a global airspace control system. Using the 4g network they will be hoping to create a geo-fencing network meaning drones cannot fly in certain areas maybe even have built in auto landing.

I believe another large American retail store are also interest in the combination of drone and blockchain technology to perform deliveries and track the parcels while being dropped off to their location all being monitored on the blockchain. Times are moving forward in both the drone and blockchain technology and it’s great to see the two crossing paths.

Data

As I have mentioned previously Data is a big thing especially in the drone world as this is what you get paid for. Data being pictures, videos, points of interest and so on. What gets me about the word “data” and what it means to me is it can be a collection of any sort of information that can be used for all sorts of purposes and as internet and technology is ever increasing the use of smartphones, TVs etc comes together to create what we will all soon known as the “internet of things” IoT. The data that could or will be collected will require some rather large storage devices and some serious security as there could be information about anyone or even everyone stored somewhere.  This is another route I was directed to Cryptocurrency along with looking for a way to supplement my business, which I had not really realised until looking back now.

What is the Blockchain?

The aim of the Blockchain is to provide secure digital identity transactions therefore components are Timestamped and dated so that by design these cannot be changed, this is all handled by a Peer to Peer network and the database is managed in a decentralised way (nodes). Cryptographically generated key (Digital Signature) gives you access to the block or parts of the block you own and when theses keys are entered into the block they can cause many things to happen for example trigger devices, computer programs, transactions, etc the list is endless and in its infancy of development and could take years to fully understand the whole process.

Some of the Code Languages used are: C++, Javascript,  Python, Solidity

Blockchain & CryptoCurrency

Now as with everything it’s best to try and understand somethings don’t just dive straight in and expect to make millions as with everything beware of the online scams one of which caught me out called Colobit which I will discuss later on it was a High Yield Investment program. The potential to make money with Cryptocurrency are massive and billions are already invested, I couldn’t believe it myself. You do have to be very wary of people out there attempting to get you to send payments to wallet addresses that belong to them and not the correct places to be careful.

As I have played around with Forex trading somethings I learned very quickly which can be applied to any investment remember to:
Have a plan and stick to it.
Do not chase money lost or prices.
Do not invest without doing your research first.
Attempt to build a diverse portfolio of coins or ICO tokens.
Do not trade or invest after big loses as this can lead to silly rushed mistakes
FUD = Fear Uncertainty and Doubt
FOMO=Fear of Missing Out, keep this in mind when dealing with ICO’s.

If you were like me you have no idea about cryptocurrencies. This is a massive emerging market but it has been on the go from around 2011. But over the last few years has gained some serious momentum. You will probably have heard of Bitcoin and the rate at which it has increase and made many millionaires. But have you heard of Altcoins???
Neither had I, but after some many hours of researching these are providing some massive unstable investments, which again are making some people very rich as the market is so unstable if you invest in the correct coin you can see some serious percentage gains.
If you want an idea of how many individual crypto coins there are look up Coinmarketcap.com roughly 1044 coins at the time of writing this. This provides you with many choice or possibilities for investment. It also has a great trending section Recently Added & Gainers/losers. Under the Gainers trend you will quite clearly see the biggest and most impressive % gains. The website compares all of the Altcoins against the USD which I find to be the best and the least complicating in the beginning and best of all it’s free.

The top of the cryptocurrencies is Bitcoin BTC (0.00000001) with 3 other coins following close behind (Altcoins) Ethereum Eth, Litecoin LTC, and Ripple XRP
Info: 0.00000001 This is known in the Cryptocurrency world as a Satoshi and is in reference to Satoshi Nakamoto the supposed creator of bitcoin.

An Influencer in the crypto currency market John MacAfee – Mr MacAfee is most famously known for his part in the creation of the first commercial anti-virus software that made him multimillion pounds when he left the company in 1994. Since then he has been involved in mobile apps, alternative medicines and now plays a massive part in cryptocurrencies his daily crypto coin promoted on Twitter would shift the markets “macafee pump and dumps”, after allot of criticism the coin of the day changed to coin of the week, then the rumours came out coins where actually paying him for the privilege but as time passed his influence seemed to dwindle. MacAfee – Gringo is a Netflix documentary based around MacAfee and gives an insight into part of this man’s life. @officialmcafee

Online Scam – Colobit

Before we get started here is an example of an investment company based in the UK that was set up, everything i could find pointed me towards how legitamit it was and how i should invest but they took my coins and have vanished into the wind. I purchased 0.00300000BTC. I then opened a colobit account and transferred my bitcoin to colobit.biz my active deposit started on 12-Nov 2017. After day one my account looked like this. Earning 0.17% hourly on colobit from a 0.003 deposit.

Colobit online scam

My First withdraw 0.00470000 bitcoin from Colobit was on 02-1-18 14:00 and it took 30 minutes to show in my strongcoin wallet with no transaction fee. I kept my deposit active so we can see if I will be able to withdraw again in 50 days. Monday the 12th of February I have now come to realise colobit is an online scam or what they call a Ponzi scheme and the webiste has now gone it was a well organised scam and there is no way to recover trace any company information, so before you invest remember “if it seems too good to be true then it probably is” but it has not stopped me hunting and searching for other good crypto investment programs out there i just take more time doing the necessary research.

Buying your first Bitcoin

To start you want to get your GDP/EUR/USD converted to a crypto currency. I opted to trade my hard earned cash for Bitcoin to start with. There is a large list of Bitcoin exchanges; the one’s I have tried all need verification which involves having:
Passport, Utility Bill and Mobile Phone verification is required for most accounts. Another good tip I came across was to set-up two factor authentication, I recommend the app Authy it works very well and sends a code to your mobile just like the card reads banks supply you with now a days.
LocalBitcoins.com (Signed Up), Verification was very fast 10 mins Required Passport and Phone number. Multiple deposit options and charges are dependent on the person you trade with.
Searched seller’s that would accept Paypal payment, then compared their exchange rates to find one which seemed reasonable. I also checked their feedback and made sure they had completed lots of trades.
Once I decided I entered into a trade and sent the details they required, be patient and wait for your seller to get in touch when you have provided all the information you require.
My transaction went well and I received my bitcoin in my Wallet on localbitcoin.com
Note: unfortunately I have found using PayPal for bitcoin transactions comes with a higher fee than bank transfer but I felt it was the better option.

Bitfinex (Signed up) Verification 4 Weeks It involved 2x ID’s 1x Utility bill and a selfie holding them with a Note signed and dated.
Bitfinex allows you to trade USD for various coins so you can sell up or buy in to quite a few coins.

Kraken (Signed up), Verification took around 10 mins for tier 2(enough for a beginner like me) Deposit to the account had to be done via bank transfer. ($5 charge for $50)

Bitstamp
Use www.bitstamp.net (Signed Up), Verification took a few days and below is the Fee’s charged.

Coinbase- Set up coinbase app on phone was very simple and add a payment method. I used coin base to but etherum that I invested into envion and ICO start up that builds green mining container rigs that can be easily transferred to different locations for use with solar panels wind farms etc.
Mistake if you buy bitcoin/hold it if you want to deal in alt coins use USDT(Teather)

Exchange your Bitcoin to an AltCoin

So now I have my bitcoin in localbitcoin.com I transferred it to cryptopia so I could exchange it to my chosen altcoin. As time has passed I have now learned that not all alt currencies are available on the same exchanges, so I have also signed up to bittrex and binance.
Cryptopia (Signed Up)
Worked very well, has a vast amount of altcoins to choose from and I found exchange times were quick.
Bittrex (Signed Up) Verification for me took 6 weeks Is great for comparing markets and select the system you want to use it allows you access to massive amounts of information.
Binance – (Signed Up) Verification for me took 6 weeks I had to sign up using a vrious different identification.
HitBTC- Only an exchange yet to use but I am signed up.

Get your deposit address from Cryptopia and send from your localbitcoin account. It did cost me a percentage to send my bitcoin so be aware of the costs to transfer your bitcoin or alt coins to various exchanges or wallets. It took about 10Mins to show in my Cryptopia account which is kind of scary for the first time. (Then I had to wait for the transaction to be verified). Basically I had the feeling it was like waiting for a cheque to clear in your online banking only this took 30mins instead of 3 days!

Now my bitcoin has arrived in Cryptopia. I proceeded to submit a buy order (exchange) it to Electroneum ETN, Neo NEO, Factom FCT and Power (POWR). I then signed up to Binance.com which is an exchange based in china. This is where I did an exchange from BitCoin to GAS. When submitting a buy order I found it easiest to buy whole coins as this makes calculations easy to begin with. Again there is a small fee for this.
So I now have my altcoins, what do you do next?
As this is an investment for a long period I am going to hold onto these and be patient. This means I need to find somewhere safe and secure for my coins just like you would with your cash it’s going into a Wallet.

Wallet

To store you’re Coins and keep them safe offline wallets will always be the safest as the information is stored on a hard drive or wallet which can only be hacked when plug into the your computer which would be a short period of time when transferring coins
Strongcoin
Coinpayments

Exchange your AltCoin back to USD

So I wanted to check if I can get my money back out of these crypto currencies. I waited until one of my coins had increased against bitcoin. When it had increased sufficiently I exchanged (submitted a sell order) on Cryptopia and waited for this to be completed.

Never Give out your private KEY

Airdrop- Not the Apple kind

An airdrop in the crypto world is a way to get FREE tokens for a coin that is typically starting out and before the ICO stage. The aim is to raise awareness and popularity therefore before the ICO is released people are talking about the tokens and have the knowledge they require maybe even creating the FOMO factor, helping them to be pushed into investing in the ICO. When people hold tokens it also helps they have to make decisions before these hit the exchanges as there options are to Hold, Buy or Sell again creating discussion and talking points on forums etc and raising more awareness and popularity.

Initial Coin Offerings (ICO)

This is the opportunity to buy into a cryptocurrency / invest money or cryptocurrencies in return for that company’s coins or token’s before it launches on exchanges. I would describe it as the crypto currency equivalent of the GoFundMe or if you like Brewdog craft beer the “Equity for punks scheme” they run. The aim for the company is to raise capital to help further develop and grow their company. The key here is to be very wary of start-up companies as if you invest and they fail your investment will most likely be lost but if the company does not reach the required amount of money they will state they need to continue your investment should be returned. This can be dangerous if the company cannot produce the desired outcome, but it can also be extremely profitable. These are not short term investments, these are potentially a few years from happening but a small investment in something that takes your fancy now could be the retirement fund you need.
Coinstalker.com is great for keeping up to date with information, News, finding current and future ICO’s.
My investments so far have been prosume.io and Envion where I exchanged some Bitcoin for their Tokens. You can read more about why I invested in Envion here
FOMO=Fear of Missing Out, keep this in mind when dealing with ICO’s as this can cause you to buy in to a ICO before you have fully read and understood the white paper. You can read more about why I invested in Envion here

 

One of John MacAfee’s recent tweets has taken a shot at ICO’s


High Yield Investment Programs (HYIP)

As I found out the hard way these tend to be scams offering high returns 40%, 50% or even more on investments very quickly e.g. daily, weekly or monthly. They tend to start out by paying out in the beginning on investments running for a few months to gain interest and popularity but when eventually before everyone wants their money back they will fold and disappear with all the investor’s money. A great movie about one of the biggest Ponzi scheme ever uncovered is the “wizard of lies” a true story about a stock broker Bernie Madoff who managed a fund of over 600 Billion dollars.

My Investments

Bitcoin= The Boss

Etherum =Smart contracts and a lot of new ICO’s use Etherum blockchain.

Ripple = Limited supply centralised bank base in mind.

Monero = Security coin

Verge = Secure and anonymous crypto currency

Envion ICO – This was a very interesting concept and I really liked the idea of greener mining. As I work in one of the biggest industry’s that people will relate to pollution and especially after watch Al Gores new movie “An inconvenient Sequel” I have come to realise that climate change or global warming as I grew up hearing it called is not fiction. It really does exist, maybe I just berried my head in the sand as I earn my income from the only industry I have ever really grown up and developed a career in. I invested in there ICO using a small amount of ETH purchased on Coinbase straightforward and very simple. Using ether to make payment has a small gas price which is what pays the transaction fee.

Power POWR – Distribution of green energy Australia based company.

Steemit (Steem) – Website for writing posts/blogs and when people upvote you get paid in Steem. This cost the user or reader nothing and the more up votes means you earn more steem to trade with. A great way to get into cryptocurrency if you like writing(typing) and have some spare time.

Electroneum = British crypto coin for transactions (Mobile mining) first company to create mobile mining for your mobile phones.

Blakecoin= Merged mining coin with easy mining properties.

Fantomcoin = merged mining coin

Digibyte = tried and tested for 4years 40x faster than bitcoin transactions. (Can be mined through 5 different algorithms.)

Cannabis Coins – Read my posts about “4 ways of making money with Cannabis investments”

DATUM (DAT) = Datum allows you to transfer and earn DAT when you send your information. Transfer of personal data you would give to facebook google etc that you can now sell for DAT. Safe and secure

IOTA = is based on the internet of things Fixed supply of 2,779,530,283,277,761 Internet of things, database to allow transactions between business to business.

Crypto Currency Mining or Cryptomining

Mining serves the blockchain by adding transactions with securing and verifiying (proof of Work or PoW) which in turn will release new currency. Having your computer hardware and equipment set up you will compete with other miners to solve the “maths problem” the cryptographic hash function. The blockchain hashing algorithms which can be mined are: Groestl, X11Gost, CryptoNight, Equihash, Lyra2REv2, NeoScrypt, LBRY, Blake (2b), Blake (14r), Pascal, Skunkhash.

Cryptographic Hash Function – Has value is a specific length an if known can easily be found, but if it is unknown by design it is very difficult to reconstruct and therefore very hard to copy or create helping maintain integrity of the data transmitted.  Obviously this is my basic understanding and more information can be found here https://en.wikipedia.org/wiki/Hash_function

 

 

Mining rig components

GPU’s (AMD 480 DDR5)

 

£300
Power supply Corsair HX1200 1200W Black power supply unit – CP-9020140-UK £210
Motherboard Power Button ATX PC Compute Motherboard Power Cable 2 Switch On / Off / Reset with LED Light (1pc) £1
Motherboard ASRock H81 PRO BTC R2.0 LGA 1150 Intel Socket H81 HDMI SATA 6Gb/s USB 3.0 ATX Motherboard £100
CPU Celeron  
CPU FAN 4-Pin Kingwin CFBL-012LB Blue LED 120mm Bearing Case Fan with 4 Pin Connector – NEW – Retail – CFBL-012LB

 

£3
RAM 4GB DDR3

 

 
Powered Riser Cables Amount to Match the GPU’s.  
Hard Drive SATA2 or SATA 3 – Enough space to install and run an operating system

 

 
Operating System Linux Free

(5-6 GPU’s any more than this and it becomes very difficult to balance.) Don’t forget your case or open air frame to house it all and a mouse keyboard and monitor (Screen).

Choose the coin to Mine

This website is your friend and can help you figure out what you would need to buy to make some money and set up a mining rig.
http://whattomine.com

Mining – Pools

When mining for cryptocurrencies it can take days weeks months or even never for a single computer to find a full block therefore you will never get paid. To help avoid this joining a mining pool is a great way to increase your payment chances and have the payment divided between everyone in that pool. Supplying more hashing power offer helps to increase your payment but also comes with an upfront cost in the way of computing hardware. How a mining pool divides up its “share of the Winnings”(pool rewards) can help you decide which mining pool is best suited to your set up. Also the adoption of merged mining helps your chances and increase payments. I would recommend joining a pool but make sure the pool seems secure and they are actually making payments, a pool will often come with a good forum or discussion group that assist you on setting up.

Merged Mining

This allows the miner to mine for more than one Blockchain at a time, searching for proof-of-work simultaneously and when they solve hashes for one network it can be shared to the other without the loss of hashrate on either blockchain. For example while mining for Monero (XMR) it is possible to mine FantomCoin (FCN) or DigitalNote(XDN) at the same time using the Minergate software something I have done personally.

Mining Node

A node is vital to support and keep the bitcoin network secure, a full node supports the network to verify transactions and blocks by broadcasting messages via nodes. These nodes are run by volunteers to help the network run on peer to peer rather than centralised services. There is no monetary gain to run a node like mining and it does require computing power and a good internet connection so if you want the network to survive help out and download the bitcoin Core software but be aware when running a full node it can make you prone to attacks from people trying to interrupt the network.

Computing requirements for running a node can include up-to-date operating system Windows, Mac OS X or Linux. 145GBs of Hard disc space with a read/write speed of 100MB/s, 2GB of RAM and internet upload speed of 50KB/s with unlimited internet data as a node may upload 200GB a month and download 20GB and this should all be running for a minimum of 6 hours a day. I also believe the bigger mining companies should be helping to take up the slack.

Trading Systems

There are many trading systems out there I am no expert but one I did have a play with was the bits systems BITS system – Teeka Tiwari system
Business Value Ratio (Baseline) = this is taken over a 30-Day average trading value in USD. When it drops below the baseline we know it is getting cheap.
Insiders = this is where you need Mr Teeka Tiwari
Technical = Relative Strength Indicator
Sentiment = Social Media Increase in chatter, Again measured over a 30 day high
(RSI = 100 – [100/ (1+RS) RS= Average gain of up periods during the specified time frame / Average loss of down periods during the specified time frame.] The value is presented in the form 0-100 and the formula was created by J. Welles Wilder.
It is considered to be supporting the (bullish) Uptrend when it fluctuates between 40 to 90. It is considered resistance against the (bearish) downtrend when it is between 60 to 10. The oversold level tends to be 30 and the overbought level is 70. Normally measured over a 14 day trading period.

Picture 1                   Picture 2

BITS trading pictures

Picture’s from: https://www.fidelity.com/learning-center/trading-investing/technical-analysis/technical-indicator-guide/RSI

Now it’s all about understandings systems something that can seem complicating but if you can find one that works there are many out there and all can apply to what you want to do. If you don’t fully understand it don’t use it. Practice and be careful not to keep changing strategies as this can get very confusing and complicated.

My Crypto Conspiracy theory

This is all speculation and my personal thoughts. 600,000,000,000 invested in crypto currency WTF. Someone must be missing this money are the banks beginning to take notice and begin a war against it. Governments helping as this money could not be taxed? 9.2 billion People with access to the internet. How many on social media? Who invests in crypto gangs drug lords etc does this mean that business now have access to money that would be laundered or stashed away or is it money that would be kept in banks and not spent? Does it mean people who couldn’t ever dream of becoming a millionaire can. Total amount of money in circulation? Who are the big investors? Security are pure anonymous coins the future?

Great Information Websites and Forums
https://thebitcoin.pub
https://coinmarketcap.com
https://bitcointalk.org
https://www.cryptocompare.com