theSun Property April 2017

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Alice wants to
send money to Ben.
The first Block is created online
and represents the transaction.
This Block is broadcast to every
party in the network.
Those in the network approve the
transactionand validate it.
The Block is then added to the Chain which
provides a permanent, nonrepudiable and
transparent record of the transaction.
Ben receives the
money from Alice.
Notes : Transactionsarenotvaliduntiladded to theChain.
Tampering is immediatelyevident.
TheBlockchain is regardedassafeaseveryone in thenetworkhasacopy .
TheSourceofanydiscrepanciesareusuallyevident immediately.
WITH digital technology
all the rage and
taking the
world by storm,
we look at how science and
automation has managed to
change and revolutionise
the waywe do things, in this
section, property. While the
internet has changed the
waywe receive information
and connect with others and
the smart phone
transformed the whole
concept of a phone, we now
look at the evolution of
finance and howpurchasing
items, including a house, is
going through reformwith
the introduction of bitcoin.
INTRODUCING
BITCOIN
When people hear terms like
“bitcoin” and “blockchain”, many
are vague while some may not even
be familiar with these words. But
for the technology industry adept,
bitcoin and blockchain are common
as these new-age technology
concepts andmodus operandi have
been around, perhaps less widely
known in Southeast Asia as it is in
theWest and China.
For the uninformed and in the
dark, bitcoin is a technology that
has established a new electronic
payment method using “digitised
money” made with digital
cryptography, otherwise known as
cryptocurrency. This systemof
payment is carried out when a user
uses “bitcoin currency”
(or cryptocurrency) to
pay for goods by
transferring the currency
to another user (seller)
within the bitcoin
community.
Each transaction is
recorded in a public data
ledger known as
“blockchain” and it is
here where all the
transactions that have
taken place within the
bitcoin community are
1) Bitcoin is an open systemof
payment: It is a system that
anyone can access, participate
and innovate, and does not
require permission. Bitcoin allows
anyone to join in and use the
system, validate the transaction
and create different kinds of
cryptocurrency.
2) Bitcoin is borderless: Like the
internet, bitcoin is not restricted
to a country’s rules and
regulations as it has its own
protocol with no distinction
across countries.
3) Bitcoin is neutral: Bitcoin does
not take the identity of the
participant into any
consideration. It only validates
the transaction that takes place
between participants. This
attribute also allows participants
to remain anonymous.
4) Bitcoin is censorship resistant:
Every transaction in the bitcoin
network cannot be frozen,
censored or cancelled. Like the
internet, the bitcoin system is a
global digital economywith one
currency.
5) Bitcoin is a decentralised
system: The bitcoin network has
no central institution or centre
point of control. This trait
ensures that there is no onemajor
target for hackers to concentrate
their attacks on. Instead, hackers
have to create attacks on every
single participant’s software with
different forms of virus and codes
to hack into one computer.
6) Bitcoin is scarce and limited:
Bitcoin is a systemof value like
gold but in digital form. This
makes it a system that is not
based on credit and debit. It also
makes bitcoin a singular global
currencywith no exchange rate
between countries.
7) Every bitcoin transaction is
permanent and immutable:
The transaction of everyone in
the community is verified by
everyone in the system. Once it is
verified, the transactionwill be
permanently recorded in the
blockchain.
8) Bitcoin is a constantly
innovative technology: The
open source nature of the bitcoin
technology allows other people
to further improve on it. There
aremany other cryptocurrencies
based on the bitcoin technology.
Moreover, the bitcoin technology
is dependent on the internet,
whichmakes improvement and
innovation necessary.
Bitcoin transactions can be done
via smart phones and computers by
downloading the application and
software. Users do not need to
register themselves to be part of the
bitcoin network as all “participants”
are referred to by codes and
“signature of one’s device”.
However, iPhone users need to
remember their iTunes password to
download the application. In
addition, the device that one has
downloaded the bitcoin software on
must remain connected to the
internet in order for one to use the
bitcoinmethod of payment.
Followour column next week
on the application of bitcoin in
property.
[Note: All charts courtesy of Bitcoin
Malaysia.]
BYBRIAN CHUNG
Email your feedback and
queries to: propertyqs@
X
DID YOU KNOW?
According to Antonopoulos, there are many cryptocurrencies. Some
of these cryptocurrencies include Dash, Monero, Ethereum, Z-Cash
and Litecoin, among others. These cryptocurrencies all share the
same technology as bitcoin and are based on the blockchain format.
everyone or with
selected users”. As
a result, the
“participants” are
in control of their
transactions,
making everyone
equal within the
bitcoin
community, which
is also transparent.
It is said that
bitcoin technology
was first created in
2008 by a person or
a group of persons
under the
pseudonym
“Satoshi
Nakamoto” in a
research paper. The research stated
that there was need for a new
electronic payment method, one
using digitisedmoney. The analysis
also included the future of bitcoin,
its benefits, capabilities and
potential.
The systemwas implemented on
Jan 3, 2009. And after just a few
years, bitcoin grew to become a
whopping US$12 billion globalised
economy.
BITCOINATTRIBUTES
While not much has been said about
bitcoin in this part of the region, the
systemhas been around, slowly
developing and growing. Likemany
things that are cloudy and not often
talked about, people are weary
hence, there will be sceptics who
dissuade others about the system
they themselves are unclear
about.
With that, theSun’s
Brian Chung shares what
he learnt of this new
method of transaction and
currencywhen he
attended a talk by
renowned entrepreneur,
author and expert on
bitcoin AndreasM.
Antonopoulos.
Below, Antonopolous
shares important
information on bitcoin.
stored. The amazing thing about
this system is that anyone in the
bitcoin community is able to
validate transactions that take place
without the need of an
intermediary.
Sound too good to be true and a
little risky?Well, the reason there is
no intermediate party necessary is
due to the network bitcoin
technology is regulated on.
MODUS OPERANDI
ANDMORE
The bitcoin network is founded on a
“peer-to-peer network system (P2P
network)” which is explained as “a
network of computers/ mobile
configured to allow certain files and
folders to be sharedwith
22 theSun ON FRIDAY | APRIL 21, 2017
PART1
SOURCE: WWW.BULLBEARANALYTICS.COM
Property in a digital era
> Introducing bitcoin and its attributes
A Blockchain is a cloud-based database shared by every participant in a given
system, in the case of this example. It’s a currency trade. The Blockchain contains
the complete transaction of the cryptocurrency or other record keeping in other
appplications.Thinkof itasacloud-basedpeer-to-peer ledger.